Rough & Tumble ®
A Snapshot of California Public Policy and Politics
 
   
 
 
 

California Policy and Politics Thursday

California faces $12 billion shortfall. Newsom points to tariffs, health care -- California faces a $12 billion budget shortfall, Gov. Gavin Newsom announced Wednesday, as Donald Trump’s global trade war, growing health care costs and devastating Los Angeles wildfires have battered the state’s economy. Sophia Bollag in the San Francisco Chronicle$ Grant Stringer, Ethan Varian, Paul Rogers, and Molly Gibbs in the San Jose Mercury$ Nicole Nixon and Kate Wolffe in the Sacramento Bee$ Jeremy B. White Politico -- 5/15/25

Newsom moves to close another state prison. That makes 5 since he took office -- Gov. Gavin Newsom today called for the closure of another prison in his new budget proposal, which would be the fifth facility closed under his watch, though he didn’t specify which institution now has a target on its back. Nigel Duara CalMatters -- 5/15/25

Medi-Cal coverage of weight loss drugs on chopping block under governor’s proposal -- The costly drugs prescribed to fight obesity have been driving up the cost of Medi-Cal, the state program that provides health coverage for low-income Californians. Eliminating coverage for these drugs would save the state $85 million in 2025-26, and up to $680 million by 2028-29, according to the governor’s office. Ana B. Ibarra CalMatters -- 5/15/25

Newsom makes room for tech priorities despite budget woes -- He followed through on an earlier $25 million commitment for a microchip design facility, announced new plans to spend $85 million more on generative AI and information technology upgrades, and downsized a deal that would direct Google to fund local newsrooms. Christine Mui and Tyler Katzenberger Politico -- 5/15/25

Newsom proposes $20-million funding cut for California newsrooms, citing budget issues -- Gov. Gavin Newsom proposed slashing funding by 67% for a pioneering deal with Google to support struggling California newsrooms, citing financial pressures that have promoted wider budget cuts. Andrew J. Campa in the Los Angeles Times$ -- 5/15/25

Newsom picks more housing over CEQA in backing two bills meant to speed construction -- The effort by two Bay Area lawmakers to exempt most urban housing developments from the state’s premier environmental regulation — an idea that has drawn some of the state’s most powerful interest groups into a fierce legislative debate — just received a prized endorsement from Gov. Gavin Newsom. Ben Christopher CalMatters Sandra McDonald in the Los Angeles Times$ Jeremy B. White Politico -- 5/15/25

Newsom to propose extending a landmark California climate law -- His budget proposal would extend the state’s carbon trading program through 2045 and reserve at least $1 billion per year for high-speed rail. Camille von Kaenel Politico -- 5/15/25

California likely to pay for Republican budget cuts -- Republicans are still negotiating how they plan to trim $880 billion from federal health care and environmental programs, but it appears that it will come at the cost of California’s budget. Shira Stein in the San Francisco Chronicle$ -- 5/15/25

Newton: Rejection of Inland Empire warehouse project signals a retreat from California’s decadeslong boom -- The residents of an embattled Riverside neighborhood gathered Monday night for a meeting that had implications for their lives, the future of their community and, in a real sense, for the state of democracy. Jim Newton CalMatters -- 5/15/25

Rancho Palos Verdes is home to a Trump golf course. But his cuts are imperiling the city’s landslide response -- Rancho Palos Verdes’ financial woes are mounting after losing a $16-million FEMA grant that was supposed to help with landslide stabilization. Grace Toohey, Robert Gauthier in the Los Angeles Times$ -- 5/15/25

Tariff

Tariffs give 157-year-old chocolate maker Guittard a bitter taste -- Like many small businesses, American chocolate maker Guittard is bracing for the coming impacts of Trump’s tariff war, but unlike some industries, the company is totally reliant on imports. Stacy Perman in the Los Angeles Times$ -- 5/15/25

Workplace

State worker payroll freezes in Gov. Gavin Newsom’s revised California budget -- Gov. Gavin Newsom wants to cut roughly $767 million from the state’s payroll expenses in salaries and wages to help close a larger-than-expected deficit California is facing. The Governor’s Office said Newsom does not seek to cut existing salaries. William Melhado in the Sacramento Bee$ -- 5/15/25

L.A. council backs $30 minimum wage for hotels, despite warnings from tourism industry -- The proposal, billed as the highest minimum wage in the U.S., would take the minimum wage for hotels and LAX workers to $22.50 in July, $25 in 2026, $27.50 in 2027 and $30 in 2028. David Zahniser and Suhauna Hussain in the Los Angeles Times$ -- 5/15/25

Mass Layoff Of Disabled Workers Imminent At California Medical Facility -- Fifty-eight disabled custodial workers at an all-male state prison in Solano County are scheduled to lose their jobs June 30 unless stakeholders reach an agreement with the California Department of Corrections and Rehabilitation. Bay City News -- 5/15/25

Housing

Is the secret to housing affordability in California buried in the building code? -- As lawmakers scramble to turbocharge post-fire recovery efforts in Los Angeles and to tackle a housing shortage across the state, a new addition may be coming to California’s building code: A pause button. Ben Christopher CalMatters -- 5/15/25

Questions loom over Trump’s order to create housing for 6,000 homeless veterans -- President Trump’s executive order calling for thousands of homeless veterans to be housed in West Los Angeles promises the relief veterans have been seeking in federal court for more than a decade, but leaves many questions unanswered. Doug Smith in the Los Angeles Times$ -- 5/15/25

Street

10-year-old California girl made TikTok about ‘getting kidnapped, lmao.’ Then she went missing -- Matthew Naval was arrested after authorities say they found him with the missing girl and her pet bird in an Elk Grove strip mall, about 250 miles from her Kern County home. Clara Harter in the Los Angeles Times$ -- 5/15/25

Bags of Cash From Drug Cartels Flood Teller Windows at U.S. Banks -- On a hazy Southern California morning, undercover police officers watched Jiayong Yu step out of a Range Rover in a strip-mall parking lot and walk into a Chase bank with a black-leather backpack full of cash. Dylan Tokar, Justin Baer and Vipal Monga in the Wall Street Journal -- 5/15/25

Salton Sea

Geologically rich but economically poor, Salton Sea communities want a say in their lithium future -- The Salton Sea will soon become a major hub for California’s renewable energy economy, prompting the legislature to take steps to ensure future investments benefit local communities that have long been left behind. Deborah Brennan CalMatters -- 5/15/25

Avian Flu

The worst of avian flu outbreak may be over in California, health officials say -- The virus appears to have slowed in California and nationally, though it’s unclear if some of that may be related to less surveillance or a scaled-back federal workforce doing less testing and information-sharing with state and local health departments. Catherine Ho in the San Francisco Chronicle$ -- 5/15/25

Waymo

Waymo recalled 1,200 robotaxis after repeated crashes with road barriers, filings show -- Waymo, the autonomous vehicle subsidiary of Alphabet, recalled more than 1,200 self-driving vehicles late last year following a series of minor collisions with stationary barriers such as gates and chains, according to regulatory filings made public this week. Aidin Vaziri in the San Francisco Chronicle$ -- 5/15/25

Yosemite

Yosemite’s famous backcountry camps won’t open this summer -- With tent-cabins, hot showers and fully staffed kitchens in Yosemite’s world-class backcountry setting, the historic camps have long been a bucket-list destination for Californians. But ramping up operations at the remote camps is a tough task, and the seasonal sites have scarcely opened in the past six summers. Gregory Thomas in the San Francisco Chronicle$ -- 5/15/25

LA28

LA28’s plan for a car-free Olympics now includes air taxis the price of a high-end Uber -- At the LA28 Olympic Games, electric air taxis will transport attendees between key venues including SoFi Stadium and LAX — all for the price of a luxury ride share. Malia Mendez in the Los Angeles Times$ -- 5/15/25

Education

Staring down harsh Trump funding cuts, UC and CSU get some relief in Newsom budget plan -- Under Gov. Gavin Newsom’s revised state budget, the proposed funding cuts for UC and CSU are much lighter than those proposed in January. Jaweed Kaleem in the Los Angeles Times$ -- 5/15/25

No cuts for schools, more funding for early literacy in Newsom’s revised budget -- TK-12 schools and community colleges can expect the same funding in 2025-26 that they received this year, plus a small cost-of-living adjustment, and there will be a big boost for early literacy, Gov. Gavin Newsom revealed Wednesday in the revision to his January state budget plan. John Fensterwald, Diana Lambert, Emma Gallegos, Amy DiPierro, Karen D'Souza, Zaidee Stavely, and Michael Burke EdSource -- 5/15/25

Here’s just how bad the ‘ghost student’ crisis has gotten at California colleges -- Criminals using bots to pose as real students siphoned off $13 million of financial aid over the last year — up 74% from the prior year, when the fraudsters stole $7.5 million of the federal Pell Grant and Cal Grant money intended for students. Nanette Asimov in the San Francisco Chronicle$ -- 5/15/25

Also

Riverside wants to become ‘the new Detroit.’ Can this self-driving electric bus get it there? -- There is a little shuttle bus in the Inland Empire that’s fueled with big aspirations. It’s electric, tops out at 25 mph, and can only go on a pre-designated route set up by the Riverside Transit Agency. But here’s a catch — it also drives itself. Anthony Solorzano in the Los Angeles Times$ -- 5/15/25

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Walmart Plans to Raise Prices Because of Tariffs -- The retailer said Thursday that it plans to raise prices this month and early this summer, passing along some of the cost as tariff-affected merchandise hits store shelves. Sarah Nassauer in the Wall Street Journal -- 5/15/25

White House considers plan B as DOGE cuts hit a wall on the Hill -- Running out of options to get its DOGE cuts approved by Congress, the White House is now looking at a two-year runway to get the cuts passed and opening the door to launching a court fight over the president’s power to shut down spending on his own. Sophia Cai Politico -- 5/15/25

NOAA scrambles to fill forecasting jobs as hurricane season looms -- An estimated 500 National Weather Service employees have taken early retirements or been fired this year, officials said, as part of the DOGE cuts in the federal government workforce. Scott Dance in the Washington Post$ -- 5/15/25

In rare move, Congress pushes back on Trump over Library of Congress -- In a rare bipartisan effort to defend its institutional authority, Congress is quietly resisting President Donald Trump’s attempt to assert control over the Library of Congress — a move that experts say threatens the separation of powers and the integrity of the legislative branch’s premier research body. Paul Kane and Meryl Kornfield in the Washington Post$ -- 5/15/25

Trump wants a new plane. Now, so does Homeland Security Secretary Noem -- A top Democratic lawmaker said the DHS plane could cost up to $50 million from the U.S. Coast Guard’s budget. Marianne LeVine and Dan Lamothe in the Washington Post$ -- 5/15/25

 

California Policy and Politics Wednesday

Newsom proposes to freeze Medi-Cal enrollment for undocumented immigrants -- To save more than $5 billion, the California governor wants to shut down new enrollment for adults who lack legal status and charge premiums. The Legislature has resisted such changes. Kristen Hwang CalMatters Taryn Luna in the Los Angeles Times$ Sophia Bollag in the San Francisco Chronicle$ Rachel Bluth Politico Laurel Rosenhall in the New York Times$ -- 5/14/25

Newsom claims Trump’s tariffs will reduce California revenues by $16 billion -- Despite personal income tax and corporate tax receipts in the state coming in $6.8 billion above projections through April, the Newsom administration is predicting that overall revenue will be lower than it could have been from January 2025 through June 2026 because of the economic impact of Trump’s tariffs. Taryn Luna in the Los Angeles Times$ Lia Russell in the Sacramento Bee$ Blake Jones Politico Alexei Koseff CalMatters -- 5/14/25

California to ask federal judge for sweeping pause to Trump’s tariffs -- The California attorney general’s office said Tuesday it will seek a preliminary injunction in its case challenging President Trump’s tariff policy, a move that could result in a court order freezing sweeping import duties on worldwide products that have rocked the global economy and U.S. markets since last month. Michael Wilner in the Los Angeles Times$ -- 5/14/25

California, 19 states sue Trump administration over withheld funds -- The battle over immigration and federal power escalated Tuesday as California and 19 other states accused President Donald Trump of illegally withholding tens of billions of dollars in transportation and disaster-relief funds from states that refuse to cooperate with the administration’s policies. Bob Egelko in the San Francisco Chronicle$ -- 5/14/25

New proposals from Gov. Newsom seek to lower prescription drug prices and protect abortion access -- Newsom’s plan would tighten rules for pharmacy benefit managers and expand CalRx, his low-cost drug purchasing program, to include name-brand abortion drugs like mifepristone. Sophia Bollag in the San Francisco Chronicle$ Alexei Koseff and Kristen Hwang CalMatters -- 5/14/25

Newsom asks lawmakers to fast-track Delta tunnel project -- Gov. Gavin Newsom has said he wants the controversial $20 billion tunnel permitted by the end of his term. Camille von Kaenel Politico -- 5/14/25

LA Times owner maneuvers into Trump’s orbit with Middle East meeting -- -- Dr. Patrick Soon-Shiong, a biotech entrepreneur who acquired his city’s ailing broadsheet in 2018, was spotted in conversation Tuesday with Trump as the president held court with major U.S. business executives during a visit to Saudi Arabia. Will McCarthy Politico -- 5/14/25

17 members of a cartel kingpin’s family were escorted into California from Mexico. Why? -- Key pillars of the Trump administration’s policy toward Mexico involve large-scale deportations and a crackdown on cartels. But reports in the Mexican media suggest that U.S. authorities recently orchestrated the secret, cross-border move of at least 17 relatives of Mexico’s most notorious drug kingpin — Joaquín “El Chapo” Guzmán — to California. Patrick J. McDonnell in the Los Angeles Times$ -- 5/14/25

L.A. judge resentences Menendez brothers, giving them chance at freedom -- Erik and Lyle Menendez received a chance at freedom Tuesday after more than 35 years in prison, with an L.A. County judge granting a request to resentence them after hours of emotional testimony from family members who said the brothers had served enough prison time for the brutal 1989 killings of their parents. James Queally and Richard Winton in the Los Angeles Times$ -- 5/14/25

LAPD

Officers are winning massive payouts in ‘LAPD lottery’ lawsuits -- In the last five years, the city has shelled out nearly $70 million for jury verdicts or settlements from lawsuits involving officers who alleged whistleblower retaliation and other workplace injustices. Libor Jany in the Los Angeles Times$ -- 5/14/25

Workplace

At LAX Airport, Uber Drivers Wait. And Wait. And Wait -- One of the busiest airports in the world used to be a prime place for gig drivers to earn money. Now, it’s typical of their increasing desperation. Eli Tan, Kellen Browning, Mark Abramson in the New York Times$ -- 5/14/25

Breathe

This California county has the highest death rate for climate change-driven wildfire smoke -- Climate change fueled devastating California wildfires between 2006 and 2020, contributing more than 5,200 deaths statewide from harmful wildfire smoke particles, according to a new study. The tally is greater than any other state over the 15-year study period. A rural Northern California county — Trinity County — had the country’s highest rate of deaths from climate change-driven wildfires and microscopic smoke and soot particles, also known as PM2.5. Jack Lee in the San Francisco Chronicle$ -- 5/14/25

Street

Mayor Daniel Lurie has a new plan to boost S.F. police staffing -- Mayor Daniel Lurie hopes to improve San Francisco’s persistent law enforcement staffing shortage partly by making it more attractive for retired police officers to come back to work temporarily. J.D. Morris in the San Francisco Chronicle$ -- 5/14/25

A Zoox and an e-bike collided in S.F. Here’s what it says about robotaxi safety -- But in a report filed to the Department of Motor Vehicles, Zoox gave a clinical description of the crash on April 4: A driverless taxi collided with a Bay Wheels e-bike whose rider had swerved into the car’s path. The Zoox sustained fender damage while the cyclist rode away. Nobody called police. Rachel Swan in the San Francisco Chronicle$ -- 5/14/25

Medicaid

At Folsom hospital, dozens rally against proposed Medicaid cuts -- Dozens of health care workers and advocates rallied at a Folsom hospital Tuesday, calling on lawmakers to oppose a slate of proposed changes to Medicaid, the federal safety net health insurance program that covers more than 14 million people in California. Annika Merrilees in the Sacramento Bee$ -- 5/14/25

State Farm

Insurance commissioner grants State Farm 17% emergency rate hike after L.A. fires -- Insurance Commissioner Ricardo Lara adopted an administrative law judge’s recommendation Tuesday and granted State Farm General, the state’s largest home insurer, a 17% emergency hike in its homeowners insurance rates. Laurence Darmiento in the Los Angeles Times$ Levi Sumagaysay CalMatters Megan Fan Munce in the San Francisco Chronicle$ Stephen Hobbs in the Sacramento Bee$ -- 5/14/25

Lopez: Four months into insurance claim delays and disputes, a new blow to fire victims: A rate hike -- For four months, the frustrations and indignities have continued for victims of the Palisades and Eaton fires, especially for those still battling their insurance companies. Steve Lopez in the Los Angeles Times$ -- 5/14/25

Climate

As climate hazards worsen, Trump moves to weaken FEMA and shift disaster response onto states -- FEMA is experiencing layoffs, budget cuts, grant cancellations and other challenges at the start of wildfire and hurricane season. President Trump wants to shift disaster response responsibilities away from the federal government and onto the states. Hayley Smith in the Los Angeles Times$ -- 5/14/25

This Southland boat company wants to electrify the Port of Los Angeles -- An electric boat company with roots in Torrance is taking steps to bring battery-powered workboats and charging infrastructure to the Port of Los Angeles, where diesel-burning vessels emit tons of carbon dioxide. Caroline Petrow-Cohen in the Los Angeles Times$ -- 5/14/25

Education

How a funding pause and renewed controversies could tank California’s ethnic studies mandate -- California became a national pioneer four years ago by passing a law to make ethnic studies a high school graduation requirement. But only months before the policy is to take effect, Gov. Gavin Newsom is withholding state funding — delaying the mandate as the course comes under renewed fire. Howard Blume in the Los Angeles Times$ -- 5/14/25

Can middle schoolers handle college? This San Jose school is finding out -- The San Jose Evergreen Community College District offers a course at a local middle school, and plans to offer more in the future. The college faculty union worries that the students are too young. Adam Echelman CalMatters -- 5/14/25

AI

Jamie Lee Curtis just wanted an AI ad removed, not to become the ‘poster child of internet fakery’-- The Oscar-winning actor recently called out Meta Chief Executive Mark Zuckerberg on social media, saying the company ignored her requests to take down a fake AI-generated advertisement on Instagram that had been on the platform for months. The ad, which used footage from an interview Curtis gave to MSNBC about January’s Los Angeles area wildfires, manipulated her voice to make it appear that she was endorsing a dental product, Curtis said. Wendy Lee in the Los Angeles Times$ -- 5/14/25

Also

A group claims it buried a $10K treasure chest in S.F. Here’s how to find it -- Buzz about the potential treasure began Tuesday, when a post on Reddit under the username “buriedtreasure2025” informed the public of the plunder. The group, which told the Chronicle it wishes to remain anonymous, said it had buried a 22-pound chest “somewhere” in the city five weeks ago. Jordan Parker in the San Francisco Chronicle$ -- 5/14/25

‘Freaky and disturbing’: No one knows why birds are dying in this Bay Area neighborhood -- On a recent evening, Mark Hoehner was walking his dogs in his neighborhood in the city of Richmond when he heard a loud pop like a firecracker. The 64-year-old marketing designer looked up and saw a dove perched on the power line suddenly fall to the ground. Five minutes later, he heard the popping sound again and a starling hit the pavement in front of him. Sarah Ravani in the San Francisco Chronicle$ -- 5/14/25

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Tiny Company With China Ties Announces Big Purchase of Trump Cryptocurrency -- A struggling technology company that has ties to China and relies on TikTok made an unusual announcement this week. It had secured funding to buy as much as $300 million of $TRUMP, the so-called memecoin marketed by President Trump. David Yaffe-Bellany and Eric Lipton in the New York Times$ -- 5/14/25

Trump accepting luxury jetliner from Qatar raises alarm on both sides of political aisle -- Experts and critics on both ends of the political spectrum have called the deal unconstitutional or worrisome from a security or geopolitical standpoint. Kevin Rector and James Rainey in the Los Angeles Times$ -- 5/14/25

GOP heavyweights join bipartisan bashing of Trump Qatar jet deal -- Senate Majority Leader John Thune and GOP firebrand senators are among those voicing discomfort with the deal. Eric Bazail-Eimil and Robbie Gramer Politico -- 5/14/25

As Trump Courts Gifts and Dangles Access, Congress Sits on the Sidelines -- Republicans on Capitol Hill seem unlikely to challenge President Trump as he pushes ethics guardrails around profiting from the presidency to the breaking point. Carl Hulse in the New York Times$ -- 5/14/25

Why these tech titans joined Trump in Saudi Arabia -- In perhaps the largest single assemblage of America’s tech leaders since they prominently graced the stage at President Donald Trump’s inauguration, Silicon Valley’s powerful decamped to the Saudi capital of Riyadh on Tuesday to join Trump and a coterie of top advisers to solicit investment from the oil-rich kingdom. Elizabeth Dwoskin and Gerrit De Vynck in the Washington Post$ -- 5/14/25

The World Is Wooing U.S. Researchers Shunned by Trump -- As President Trump guts American research institutions, world leaders see a “once-in-a-century brain gain opportunity.” Patricia Cohen in the New York Times$ -- 5/14/25