plan

SACRAMENTO — — After nearly a year of often tortuous negotiations, Gov. Arnold Schwarzenegger and Assembly Speaker Fabian Nunez have settled on a plan to extend health insurance to 3.6 million Californians who lack it through a new tax on all employers and tobacco sales, officials said Friday.

The leaders have agreed to ask voters in November to require employers to spend between 1% and 6.5% of their payroll costs on healthcare. The measure would also levy a tax on tobacco sales of at least $1.50 a pack, although it could be as high as $2 a pack, the aides said.

“It’s an incredible plan,” Nunez (D-Los Angeles) said in an interview. “I couldn’t tell you there is one single outstanding issue that is a make-or-break issue.”

Daniel Zingale, a senior advisor to Schwarzenegger, said the leaders “have agreed on the framework of the healthcare reform that will go before voters.”

Nunez’s office on Friday filed a companion bill that contains the details of how the plan would work and scheduled an afternoon vote in the Assembly on Monday, presuming a few details will be resolved over the weekend.

That bill does not contain the taxes or other measures that would provide the $14 billion a year needed to finance the ambitious overhaul and would not take effect unless the ballot measure passes. That puts Democratic lawmakers in the highly unusual position of voting on the plan without being able to assess whether the intricate financing scheme will be adequate. Republicans have already vowed to vote against the measure.

The moves came as Schwarzenegger promised to call an emergency session of the Legislature for early January to make cuts to the state’s budget. The governor’s office estimates the projected gap may reach as high as $14 billion by July 2009, which is threatening to sap political momentum from the healthcare plan.

On Thursday, Senate President Pro Tem Don Perata (D-Oakland) said that while he supported most of the Nunez-Schwarzenegger plan, he intends to delay a Senate vote on the measure until the governor outlines how his proposed budget cuts will affect existing healthcare programs for the poor and disabled

The Nunez-Schwarzenegger plan would require almost all Californians to obtain private medical insurance. Those earning below 2 1/2 times the poverty level — or $51,625 for a family of four — would receive state subsidies to pay for most of their premiums.

Families earning more than that but no more than four times the poverty level — $82,600 for a family of four — would be able to fully deduct any premium costs that exceed 5.5% of their incomes, which translates to $4,543 for a family at the top of that range. There would also be tax credits for people who retire before they qualify for Medicare at age 65 so that they would not spend more than 10% of their savings on insurance.

Under the plan, California employers with payrolls of up to $250,000 a year would have to spend at least 1% on healthcare for their workers. Those that didn’t would pay into a state-run health insurance pool that would help secure coverage for the employees. Companies with payrolls up to $1 million would have to pay 4% and those with payrolls up to $15 million would have to pay 6%. All larger companies would pay 6.5%.

The plan would extend coverage to 800,000 low-income children and many impoverished adults who currently do not qualify for public programs. It would omit about 1 million illegal immigrants as well as another 500,000 people who are poor but either refuse public coverage or cannot document that they are legal residents.

The bill the Assembly will consider Monday would upend the way California’s insurance market works. Insurers would be barred from denying coverage to people because of existing medical ailments and would have to spend at least 85% of premiums on medical care.

Many insurers, including Kaiser Permanente and Blue Shield of California, have supported this approach for months, but the state’s largest insurer, Blue Cross of California, is preparing to fight the ballot measure.

The plan also contains a $2.3-billion tax on hospitals, supported by the industry, that would pay for increased MediCal payments to doctors and institutions that treat the poor. That tax would also qualify California to draw another $2.3 billion from the federal government.

Those involved in the negotiations said the only major piece still to be ironed out is the tax on tobacco. Schwarzenegger and Nunez have been negotiating with the tobacco companies to see if they can craft the provision in a way that will win their acquiescence, if not their support. But aides said they are also still discussing whether $1.50 a pack will be enough to fund the plan, or whether they will need $2 a pack — an amount tobacco industry leaders say they will oppose.

We “don’t think funding expanding programs with a declining revenue source makes sense,” said David Sutton, a spokesman for Philip Morris USA in Richmond, Va.

Perata also expressed major reservations about the tobacco tax, and said that provisions being insisted upon by the tobacco industry, including immunity from civil and criminal lawsuits, would doom the deal.

The California Nurses Assn., which has favored replacing private insurers with a state-run provider of medical coverage, said the bill was being pushed through the Legislature. “Just as with the energy deregulation fiasco, legislators are being rushed into voting in the dark on a sweeping bill with massive loopholes and serious financial ramifications that no one has adequately reviewed,” said Donna Gerber, the union’s chief lobbyist.

Even some supporters of lawmakers’ efforts were worried that the broader political climate would be insurmountable.

Bob Ross, president of the California Endowment, a Los Angeles-based foundation that favors expanded healthcare, cited as obstacles the state’s weakening economy, the budget gap and the continued standoff between President Bush and the Democratic-led Congress about expanding federal health insurance for children.

“When you do the math on that set of realities, it doesn’t bode well,” Ross said. “So it comes as welcome news that the governor and the speaker are fighting and trying to get something done.”

—

jordan.rau@latimes.com

Times staff writer Nancy Vogel contributed to this report.

WASHINGTON — An effort to ramp up U.S. weapons production and build more ships, planes and drones will require a massive upfront investment, President Trump’s budget director told a House committee Wednesday.

The testimony from Russell Vought jump-starts the White House’s push to increase defense spending to nearly $1.5 trillion in the next budget year, up from nearly $1 trillion this year, while cutting health research, heating assistance and scores of other domestic programs by about 10% overall. Such cuts do not cover mandatory spending, which includes such programs as Social Security and Medicare.

The debate over Trump’s proposal underscored the sharp divide that will shape some of the most significant policy debates going into a midterm election that will give voters the ultimate say on the direction of the country.

“For the industrial base to double or triple and build more facilities, not just add shifts, it requires multiyear agreements to purchase into the future,” Vought told lawmakers. “That cost has to be booked in this first year.”

The White House is calling for about $1.1 trillion for defense through the regular appropriations process, which typically requires support from both parties for approval. An additional $350 billion would come through a separate bill that Republicans can accomplish on their own, through party-line majority votes.

Rep. Brendan Boyle of Pennsylvania, the ranking Democratic member of the committee, said he believes in a strong national defense. But he said the idea of increasing defense by more than 40% while cutting programs that people need shows that the Republican administration’s priorities are “out of whack.”

The committee chairman, Rep. Jodey Arrington (R-Texas), predicted the hearing would be more “amped up” than usual, and that proved to be true, beginning with his opening statement focused on criticizing Democrat Joe Biden’s presidency. Arrington said he did not know of any president in his lifetime who “inherited such a complete and utter mess as President Trump did in January of last year.”

Since then, Arrington said, Trump has secured the border, cut taxes and constrained nondefense spending.

It was the beginning of several back-and-forths at the hearing.

“You know how bad this economy is when we hear Joe Biden being invoked, we hear trans people being invoked. I was waiting for Jimmy Carter to be blamed next,” Boyle said in response to Arrington’s opening remarks.

Boyle said consumer confidence is plummeting under Trump and noted a gas station he passed in Philadelphia recently was selling gas at $4.11 a gallon versus less than $3 a gallon some six weeks ago because of Trump’s “war of choice in Iran.”

Rep. Becca Balint (D-Vt.) called the proposed defense spending increase shocking.

“We’ve never in the history of this country seen spending like this, paid for by slashing healthcare, education and housing,” Balint said. “Mr. Vought, yes or no, is $350 billion for the war in Iran lowering costs for Americans?”

“It is certainly not defunding child care. We fully fund child care in this budget,” Vought said, not directly answering the question.

Balint went on to incorporate Trump’s “America first” mantra in her questioning.

She said that $350 billion could pay for an enhanced health insurance tax credit for 10 years and that her constituents are asking how the country can continue to spend money on wars and not find a solution to helping people afford healthcare.

Vought said the president has made clear he was not going to let Iran have nuclear weapons, missiles and a navy that affect U.S. national security.

“He is doing what is necessary to keep us safe, while at the same time trying to pursue diplomacy so that we can get out of wars and lower those costs over time,” Vought said.

Vought said it was unclear how much the administration would seek to fund the war during the current budget year, which ends Sept. 30. That money would be part of an emergency supplemental spending bill and would be on top of the funds the White House is seeking to boost defense spending next year.

“Would it be more than $50 billion?” asked Rep. Veronica Escobar (D-Texas).

“We’re still working on it,” Vought said. “I don’t have a ballpark for you.”

Freking writes for the Associated Press.

WASHINGTON — President Trump’s design for the Triumphal Arch he wants built at an entrance to the nation’s capital moved a step forward Thursday after a key agency reviewed the proposal for the first time. One commissioner suggested changes, including losing the Lady Liberty-like statue and pair of eagles that would sit on top of the arch and add to its height.

The arch is one of several projects that the Republican president is pursuing alongside a White House ballroom to leave his lasting imprint on Washington.

The U.S. Commission of Fine Arts voted to approve the concept design for the arch. The seven commissioners, all appointed by Trump, will review an updated version of the design before taking a final vote at a future meeting.

Trump said last week on social media that the arch “will be the GREATEST and MOST BEAUTIFUL Triumphal Arch, anywhere in the World” and a “wonderful addition to the Washington D.C. area for all Americans to enjoy for many decades to come!”

Also on the agenda for the commission’s monthly meeting was his plan to paint the gray granite exterior of the Eisenhower Executive Office Building, which is next to the White House, white.

A third White House-related project, construction of an underground center to conduct security screenings of tourists and other guests, was also up for consideration.

Triumphal Arch

The arch would stand 250 feet tall from its base to a torch held aloft by a Lady Liberty-like figure atop the structure. That figure would be flanked up top by two eagles and guarded at the base by four lions — all gilded. The phrases “One Nation Under God” and “Liberty and Justice for All” would be inscribed in gold lettering atop either side of the monument.

The commission’s vice chairman, architect James McCrery II, said he preferred the arch without the figure and eagles on top. McCrery also objected to the lions on the base.

The arch would be built on a human-made island managed by the National Park Service on the Virginia side of the Potomac River at the end of Memorial Bridge from the Lincoln Memorial in Washington. The arch would dwarf the Lincoln Memorial, which is 99 feet tall, and be close to half the height of the Washington Monument, an obelisk that is about 555 feet tall.

White House press secretary Karoline Leavitt said Wednesday that the arch’s 250-foot height will honor America’s 250 years of existence.

A group of veterans and a historian has sued in federal court to block construction on the grounds that the arch would disrupt the sightline between the Lincoln Memorial and Arlington House at Arlington National Cemetery, among other reasons.

Underground screening center for White House visitors

The U.S. Secret Service, Interior Department, National Park Service, and the Executive Office of the President want to start construction in August on a 33,000-square-foot (3,066-square-meter) center to screen tourists and other visitors to the White House.

It would be built beneath Sherman Park, federal land southwest of the White House, to provide a more secure place to screen those going on White House tours or attending events. The new facility would have seven lanes to ease processing and reduce wait times.

Officials want it operating by July 2028, six months before Trump’s term ends.

Eisenhower Executive Office Building paint job

Trump said the Executive Office Building is beautiful, but he does not like its gray exterior.

“It’s one of the most beautiful buildings anywhere in Washington,” Trump said in August. “I think it’s just incredible, but you have to get past the color because the stone they used was a really bad color.”

Two proposals were given to the commission: Cover the entire building in bright white or paint most of it white while leaving untouched the granite on the exposed basement and subbasement.

In written materials, the White House said the building has been largely neglected since its construction. It said the building’s color, design and massing do not “align visually with the surrounding architecture” and lack ”any symbolic cohesion with the White House.”

The paint job is also the subject of litigation in federal court.

The building sits across a driveway from the West Wing. It was completed in 1888 after 17 years of construction, and its granite, slate, and cast iron exterior makes it one of America’s best examples of the French Second Empire style of architecture.

It originally housed the departments of State, War and Navy. It currently houses offices for the vice president and the National Security Council, among others.

The building is a National Historic Landmark and is also listed on the National Register of Historic Places.

Superville writes for the Associated Press.

AFTER becoming the first Love Island star to make Forbes’ 30 Under 30 list, savvy Molly-Mae Hague has a nifty plan to ‘Fury-proof’ her finances.

With a staggering £22million in the bank and a second baby with boxer fiancé Tommy on the way, there are whispers that a watertight pre-nup featuring a “loyalty clause” is in the works.

Molly, 26, took the shamed boxer back a year ago after cheating allegations against him led to their shock split in 2024.

And while her £600,000 engagement ring is back on and she is pregnant with a sibling for three-year-old Bambi, there is no sign of a wedding on the horizon.

Now sources close to the business-minded beauty say she is determined to make sure Tommy, 26, is 100 per cent dedicated to her before tying the knot.

An insider explained: “Molly has more than proved she knows a thing or two about making money and she knows full well what marriage could mean for her wealth.

“There’s been talk that she would want him to sign a contract before they commit any further, which would have a cheating clause and allow her the access to her money she feels she might need to move on.”

Molly was already a popular influencer when she appeared on Love Island in 2019 and met Tommy but her rise to super stardom and extreme wealth after the show is unprecedented.

‘Old home is back up’

She did not just land a fast fashion deal like other Islanders. She became Pretty Little Thing’s creative director, earning a reported £400,000 per month.

She also secured deals with huge companies such as L’Oreal and Fairy.

And recently she is said to have been paid more than £2million to collaborate with Adidas.

Molly would not be the first woman to demand a cheating clause.

Catherine Zeta Jones is said to have included a similar one in the pre-nup prior to her 2000 wedding to fellow actor Michael Douglas.

It was reported that if he ever cheated he would have to pay ­Catherine £1million for every year they were married.

Justin Timberlake and Jessica Biel also allegedly have a clause in their prenup that would entitle Jess to £400,000 if he cheated.

It was late in the summer of 2024 that Molly dumped Tommy, telling her followers: “Never in a million years did I think I’d ever have to write this.

“After five years of being together I never imagined our story would end, especially not this way.”

The couple had been planning to move into a £5million mansion but after Tommy was accused of kissing a blonde beauty on a lads’ holiday to Macedonia, Molly stayed put in her £4million Cheshire home and booted Tommy out.

There’s been talk that she would want him to sign a contract before they commit any further, which would have a cheating clause

Insider

But the couple were seen sharing a kiss at a New Year’s Eve party and officially reunited in May 2025.

And while they now live in their new family home, we can reveal Molly has kept hold of her first mansion, which is solely in her use.

Our insider said: “Molly has been very reluctant to sell the Cheshire home and knows it’s probably wise to keep hold of it as a back up.”

At the start of the year fans were shocked when Molly quietly announced she was expecting another baby with Tommy, and was already six months pregnant.

Pals say the star opted to have another child with Tommy because she was keen that her children all have the same father.

Another source adds: “Molly is very traditional in lots of ways and Tommy is, of course, also very old school, so they wanted to have more children together.”

A blended family was not an option for Molly, the source said.

Molly’s dream

“She wants her kids to have ­consistency like she had growing up. It’s one of the main reasons she got back with him.”

Casting doubt over their relationship, Tommy’s dad John Fury said in the family’s Netflix show, At Home With The Furys: “Molly is a lovely person, but she can’t help the life she’s been brought up in, it’s contrasting to ours.

“But she’s put up with some s*** hasn’t she, so fair play to her – she’s not a bad girl.

“I’m also going to be there to support them. Let’s see what happens.”

Tommy’s half brother and former world heavyweight boxing champion Tyson has also been critical of Molly’s career.

She wants her kids to have consistency like she had growing up. It’s one of the main reasons she got back with him.

Source

In the new series of his show he appears mocking of influencers, warning his daughter Venezuela: “If you are an influencer your private life is non-existent. Look at Tommy and Molly. If you want to make money out of doing nothing, ­basically privacy doesn’t exist.

“I’ve done a million-thousand achievements. I can write a table full of them. We’re just in an era where you can get famous for what? Getting our tits out on telly.”

But Molly, a dropout from the London College of Fashion, has come a long way since Love Island.

Forbes might have put Tyson at No3 in its ranking of the highest-paid athletes in the world, with his earnings being estimated at £120 million, but Molly is hot on his heels (wearing her sold-out Adidas shoe collection).