revolt

WASHINGTON — For much of President Trump’s second term, Republican senators have largely stayed in line, wary of the consequences of defying a president with a history of targeting those who cross him. This week, that dynamic noticeably shifted.

Senate Republicans blocked two of Trump’s legislative priorities, angered by the push to create a $1.8-billion federal fund to compensate people who claim to have been politically persecuted, including rioters who assaulted the Capitol on Jan. 6, 2021. The revolt forced Republican leaders to pull a planned vote on legislation to fund the president’s immigration crackdown and security features for the president’s White House ballroom project.

In response, the president defended the fund and lashed out at its critics.

“I gave up a lot of money in allowing the just announced Anti-Weaponization Fund to go forward,” Trump wrote in a post on Truth Social. “Instead, I am helping others, who were so badly abused by an evil, corrupt and weaponized Biden Administration, receive, at long last, JUSTICE”!

The president also called Republican senators who broke with him quitters who are “screwing the Republican Party.”

The friction, which has been building for weeks, is being watched as potential test to the limits of Trump’s grip on his party amid an already tense political environment heading into the midterm elections.

“This is kind of a perfect storm,” former Sen. Jeff Flake (R-Ariz.) said on NBC’s “Meet the Press.” “It may be that this time you can point to it and say this is when the great migration begins, away from some of the president’s policies and away from the fear that the president can target you.”

Whether this week marks the beginning of that moment — or simply another episode of political turbulence that fades — is the central question now handing over Trump’s second term.

Not the first break — but an escalation

This is not the first time Republicans have broken with the president. In November, Congress overwhelmingly voted to force the Justice Department to release of the Jeffrey Epstein files, an effort that Trump unsuccessfully tried to thwart for months.

The Epstein vote showed that on the right issue, under the right circumstances, Republicans could be moved to defy Trump. This week, the creation of the fund changed the circumstances again, and the number of Republican senators willing to act quickly grew.

This moment comes after months of rising costs during the war in Iran, efforts by the president to oust members of his own party and now a set of proposals that are proving hard to defend in an election year.

“What you have is basically a bunch of people who feel a bit under siege,” said Bob Olinksy, the senior vice president of Structural Reform and Governance at the Center for American Progress. “At the same time, they know that most of what the president is doing is unpopular, and they’re the ones who are going to be standing for reelection in November.”

Republicans push back

Senate Republicans leaders are now asking the Department of Justice to reconsider the terms of the fund, underscoring just how politically toxic the idea has become within the president’s own party.

Sen. Kevin Cramer (R-N.D.) told reporters that the politically speaking, the fund is “unexplainable.” Sen. Susan Collins (R-Maine) told the New York Times the fund should be in real trouble. Sen. Mitch McConnell (R-Ky) called the fund “utterly stupid” and “morally wrong.”

Sen. Thom Tillis, a North Carolina Republican whom Trump has singled out for going against him, was equally unsparing, saying he opposed “using billions of taxpayer dollars to compensate convicted felons and thugs who attacked police.” He also criticized the administration for pushing domestic and foreign policy issues that he says are bad for housing and the military.

“If opposing these things makes me a RINO [Republican In Name Only], then I gladly accept that nickname,” Tillis wrote on X. “We need Republicans to do well in November, but the stupid stuff is killing our chances!”

The Republican push back comes as the concern about self-dealing runs deep across the electorate.

A recent poll Economist/YouGov poll found that 59% of Americans believe Trump is using his office for personal gain, though that belief is sharply divided among partisan lines. A CNN poll found that 37% of Americans say Trump puts the good of the country above his personal gain, while 32% say he is in touch with the problems of ordinary Americans.

Asked if the political environment influenced the actions this week, Senate Majority Leader John Thune (R-S.D.) told reporters that there is a “political component to everything we do around here.”

Funds and tax immunity clauses

Senate Democrats are wondering if the fund will mark a watershed moment for Republicans.

“Have Republicans finally found a bridge too far?” Sen. Richard Durbin (D-Ill.) told reporters after Republicans left Washington without funding Trump’s priorities.

Democrats have called the fund an illegal abuse of power designed to line the pockets of Trump’s allies with taxpayer dollars. Sen. Chris Van Hollen (D-Md.) called it a “pure theft of public funds.”

The fund was created as part of a settlement resolving a $10-billion lawsuit Trump personally brought against the Internal Revenue Service over the leak of his tax returns. Alongside it, the deal says the IRS is “forever barred and precluded” from pursuing any tax claims against Trump and his businesses.

Under the tax immunity clause, Trump and his family could save more than $600 million, according to an analysis by Forbes.

The fund, however, has been the target of most of the bipartisan ire. Mostly because Trump and administration officials have not ruled out that it could stand to benefit people who carried out violence during the Jan. 6 riot.

The public funds, if disbursed, would come from the federal judgment fund, which is a Congress-approved ongoing appropriation that allows the Justice Department to settle cases and make payouts. In the past, Republicans have taken issue with the fund. The GOP-controlled House Judiciary Committee characterized it an abuse in 2017.

Several of the president’s allies have already talked about tapping into the fund.

Michael Cohen, Trump’s former attorney who served prison time in relation to campaign finance violations, said he plans to apply for compensation.

Former Proud Boys leader Enrique Tarrio, who was convicted of seditious conspiracy and later pardoned by Trump, told CBS News he would seek a payout from the fund.

“I was targeted,” Tarrio said. “And I do believe that this fund does apply to me.”

On a Tuesday evening in Eagle Rock, used-bookstore owners Jeremy and Debbie Kaplan were closing up for the day when a stranger rushed through the entrance. He tossed an envelope onto the counter, said something like: “Building’s been sold,” and slipped out.

Inside the envelope, the Kaplans found a 30-day notice: The shop’s $1,200 monthly rent would be increasing to $2,805 on April 1, they were required to decide whether they would accept the more than 133% price hike a month in advance, and they’d need to agree to a three- to five-year lease if so. The letter arrived Feb. 17, which meant the Kaplans had 11 days to accept the new landlord’s terms or leave.

“We couldn’t even consider it,” Jeremy Kaplan said. “It would be suicide.” The couple looked around the 680-square-foot shop. From the floor to ceiling, more than 20,000 books were crammed every which way into shelves they’d built and stained themselves nearly 20 years before. “My first reaction was panic,” he said. “How are we going to move out of this place?”

Their children had grown up at Read Books (pronounced like the color, as in: “These aren’t new books, they’re previously read books.”) The realization began to set in, Jeremy said, that they were being pushed out with intimidation tactics. “We started getting angry. So the next day, we started looking into our legal rights.”

After searching the internet, the Kaplans found California’s Senate Bill 1103, the Commercial Tenant Protection Act that passed last year. The law offers protections for “qualified commercial tenants” and requires landlords to give a 90-day notice for rent increases surpassing 10%.

When the Kaplans tried to contact the new property management company, Jeremy said, Systems Real Estate was evasive.

“It’s the one bill that protects commercial tenants, and it’s a fairly toothless bill because they don’t have to acknowledge it, unless you make them acknowledge it,” he said. The Kaplans, along with Sharon Kroner, whose neighboring vintage boutique Owl Talk is facing the same fate, wrote to Systems Real Estate, citing SB 1103. They had the letter certified and attached their rent checks for the next month.

In response, the 30-day notice was amended to 90 days. Systems Real Estate did not respond to a request from The Times for comment.

The Kaplans had more time to search for a new location, but Jeremy quickly saw a trend in Northeast Los Angeles. “Vacant spaces all over the place,” he said. “When we inquired, they were ludicrously expensive, most over $5 per square foot. The second thing we started noticing was small stores like ours going out of business or being priced out in the exact same way we were.”

Jeremy Kaplan stands inside his bookstore on the last day Read Books is open for business.

(Carlin Stiehl / For The Times)

Building a coalition

When Jeremy started posting about Read Books’ plight, the response was immediate and overwhelming. Many customers who reached out said they wanted to help — the bookstore had been in Eagle Rock for as long as they had.

“Not mere condolences but calls to action from people I barely knew,” he said. “Lawyers, journalists, activists, parents, children.”

Two days after the rent-increase notice was delivered, the Kaplans and their supporters were devising a plan to fight back — if not to save Read Books, then to save other small businesses.

Save North East Los Angeles Shops was born.

Chris Newman, an immigrant rights lawyer whose son learned to read with books bought at the Eagle Rock shop, told The Times he showed up to the group’s first official meeting with the intention of trying to save the bookstore.

“I was surprised to see so many people talking not just about the situation that Jeremy’s in, but an epidemic that small businesses are facing,” Newman said.

At one coalition meeting in April, Jeremy rushed in late.

He’d just come from an event where he’d been able to talk with Mayor Karen Bass about the plight small businesses are facing and asked about the possibility of imposing a commercial vacancy tax on property owners who leave storefronts vacant for extended periods.

Although sympathetic, the mayor shot him down pretty swiftly, Jeremy said, saying nobody in L.A. wants more taxes.

A representative for Bass told The Times that under her leadership, “the City is focused on cutting red tape, expanding support for local businesses, and advancing solutions that address the broader affordability crisis.”

Signs against rent increases are posted outside Read Books.

(Carlin Stiehl / For The Times)

The precedent

In March 2020, before the COVID-19 pandemic shut the world down, small businesses in San Francisco had been grappling with rising rents that increasingly led to empty storefronts. Then North Beach’s beloved corner gem, Caffe Sapore, got its notice. Like Eagle Rockers, San Franciscans were done merely lamenting the community’s loss. They started organizing.

Aaron Peskin, who at the time served on San Francisco’s Board of Supervisors, said that while there are a variety of factors contributing to the vacancy issue, impractical property owners were the most common thread.

“Commercial landlords had unbelievably unrealistic expectations of rent, and a small business can only sell a T-shirt or a hamburger or a service for what the market will bear, and none of them could swing the rent,” Peskin said.

That year he authored Proposition D, a commercial vacancy tax ordinance that applies to street-facing, ground-floor properties that sit vacant for more than 182 days a year. It passed with nearly 70% of the vote.

“I served on that Board of Supervisors for 17 years, and it’s one of my proudest pieces of public policy,” Peskin said. “In the years since it passed, it has been working and has really helped in the post-pandemic recovery in our neighborhood commercial corridors. It’s been a rare instant success story.”

Demonstrators march toward Eagle Rock City Hall carrying protest signs against rent hikes for small businesses.

(Carlin Stiehl / For The Times)

The landlords

The question as to why someone would purchase a commercial property, raise the rent so current tenants are displaced and prospective tenants look elsewhere, only to have a onetime community hub collecting cobwebs, has inspired myriad theories.

Peskin pointed to an impractical landlord mentality; an L.A. council member suspected landlords were after tax breaks; a professor of economics said that his sense is that there’s more going on and tax benefits are likely not the driving factor; and a commercial real estate expert said landlords are likely pricing tenants out so they can tear the buildings down.

The Times reached out to Dr. Ari Ucar, the new owner of the Eagle Rock Boulevard building, who did not respond.

Los Angeles City Councilmember Ysabel Jurado, a former tenant rights attorney, told The Times that landlords can benefit by claiming the vacancy as a loss on their taxes. “For landlords who own multiple commercial properties in a wide portfolio, a vacancy can be marked as a loss. In essence, when you file taxes and mark this as a loss, it reduces the total income generated. That’s the perverse incentive of having a vacancy.”

But a tax attorney in Los Angeles, Andrew Gradman, wasn’t convinced the tax incentive was enough to curb a landlord’s appetite for the passive income of steady rent payments. “You have to consider the most reasonable premise, which is that these landlords think they can get a better tenant, or they think that the lease would stand in the way of their getting some other better deal, in the form of, say, selling the whole building.”

A commercial real estate broker, Nick Quackenbos, said the likely motive for such a price hike is plans to scrape the building and build apartments in its place. He pointed to a recent landmark bill, State Senate Bill 79, which overrides local zoning laws to allow for taller, denser buildings near major transit stops. The bill will take effect statewide July 1, but L.A. plans to delay citywide upzoning until 2030 by carving out bespoke plans that target 55 single-family and low-density areas, allowing for 4-16 unit buildings up to four stories tall.

The 55 areas are mostly in Central L.A., West L.A., the Eastside and the San Fernando Valley. While Eagle Rock isn’t what L.A. city planners are designating an “opportunity hub” right now, Read Books is located a stone’s throw from the upcoming Colorado/Eagle Rock station, a stop on the North Hollywood to Pasadena BRT (Bus Rapid Transit) line slated to launch ahead of the 2028 Summer Olympics.

“The bill is allowing things to take place which could disfigure a city like Eagle Rock,” said Quackenbos. “I bet that’s what you’re going to find down the road: These places will become vacant, and suddenly there’s groundbreaking for a new apartment building going up.”

Jeremy Kaplan speaks to community members outside his store, Read Books, about the issues small business owners face.

(Carlin Stiehl / For The Times)

The rally

Read Books was set to close last weekend, and the Kaplans wanted to go out with a bang. In the shop’s front window was a single book: “The Rich and the Rest of Us: A Poverty Manifesto” by Tavis Smiley and Cornel West, surrounded by signs that read “Forced Out!,” “Shame on Greedy Landlords,” and “Our Family Loves Read Books.”

As Debbie sat at the register inside, helping a steady flow of the shop’s final patrons, protesters gathered behind the building, clutching homemade posters and waiting for Jeremy to speak. Choking up, he addressed the crowd.

Debbie Kaplan, who co-owns Read Books, hands a customer books.

(Carlin Stiehl / For The Times)

“Three months ago, when this all began, my initial action was to fight back, because fighting is my default setting. But I also felt … fear of insignificance, of disappearing, as if everything we built in the last 19 years, often working seven days a week, might soon be dismantled and forgotten. The support you’ve gifted us with these last few months has been a constant reminder that we’re all in this together.

“The real estate lobby is rich and powerful. They have more lobbyists than our representatives have staff, but we are building a coalition to fight them.

“What’s at stake? The soul of Los Angeles.”