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California Policy and Politics Thursday

California dodges a bullet on Colorado River cuts -- California, Arizona and Nevada offered to cut water use to ease the Colorado River crisis. Now, as the Trump administration prepares to announce a plan for dealing with the water shortages, it’s set to accept much of what the three states proposed. Ian James in the Los Angeles Times$ -- 7/23/26

 

California wants to build biggest reservoir in 50 years. There may not be enough water to fill it -- The plan to build California’s largest new reservoir in 50 years has hit a major snag, threatening to undermine the $6 billion water-supply project and prompting outcry from supporters. Kurtis Alexander in the San Francisco Chronicle$ -- 7/23/26

OpenAI and Anthropic could go public for trillions. Will S.F. cash in? -- With local titans OpenAI and Anthropic poised for two of the biggest stock market debuts ever — potentially topping $1 trillion each — how much of that wealth will flow back to the city? Not much — at least not directly — experts told the Chronicle. Roland Li, J.D. Morris in the San Francisco Chronicle$ -- 7/23/26

Measles surge dramatically in California among children and young adults -- Measles cases have doubled in California so far this year compared to last year — and 2026 is barely half over. Rong-Gong Lin II in the Los Angeles Times$ -- 7/23/26

 

Immigration sweeps in L.A. cost businesses millions in revenue, UCLA study finds -- Researchers found there were 46,000 fewer customer visits among formal businesses within half a mile of nine documented enforcement sites and an estimated $3.16 million in accumulated revenue losses during the two weeks after enforcement activity. Brittny Mejia in the Los Angeles Times$ Julia Barajas LAist -- 7/23/26

The Choice Facing Some Immigrants: Pay $1.8 Million in Fines or Leave -- The Trump administration is aggressively deploying a potent tool to pressure undocumented immigrants into self-deporting — civil fines that can total as much as $1.8 million. Miriam Jordan in the New York Times$ -- 7/23/26

New student visa limits could ripple through Bay Area labs and campuses -- International college students across the Bay Area are rushing to adapt to new Trump administration restrictions on student visas, which could make it more challenging to complete doctoral degrees, conduct scientific research or transfer schools. Delilah Brumer in the San Francisco Chronicle$ -- 7/23/26

Man who threw cinder block chunks during anti-ICE protest in L.A. gets prison sentence -- Jacob Daniel Terrazas, 31, previously pleaded guilty in January to a misdemeanor count of simple assault on a federal officer. Brittny Mejia in the Los Angeles Times$ -- 7/23/26

 

Nancy Pelosi, Ro Khanna and other California lawmakers defend KGO in letter to FCC -- California lawmakers are siding with KGO-TV as the ABC station fights to stay on the air. Desiree Luo in the San Francisco Chronicle$ -- 7/23/26

Newsom appoints podcaster Scott Galloway to UC Board of Regents -- A professor of marketing at NYU, Galloway has founded several companies in the consulting and digital research fields, and served on the board of directors for Urban Outfitters, Panera Bread and The New York Times. Eric He Politico -- 7/23/26

Covered California rates to jump nearly 10% as thousands struggle to afford coverage -- Health insurers are raising rates for plans sold through Covered California by an average of nearly 10% for the second consecutive year, compounding the loss of federal subsidies that sent customer payments soaring as marketplace enrollment fell by about 170,000 people. Grant Stringer in the San Jose Mercury$ -- 7/23/26

Warehouse fire aftermath

Giant rats, bright green flies, putrid smells: Unbearable conditions in near Boyle Heights warehouse, residents say -- Residents describe the conditions they’ve been living in nearly a month after a fire damaged a cold storage food warehouse in Boyle Heights. Salvador Hernandez, Allen J. Schaben in the Los Angeles Times$ -- 7/23/26

Insurance

Four myths about insurance in California -- Disasters aside, property insurance affects where people live, how neighborhoods are formed, whether people can drive to work, and more. As the state’s residents prepare to vote for a new insurance commissioner in November, here’s a look at a few common myths about insurance in California. Levi Sumagaysay Calmatters -- 7/23/26

Homeless

The Bay Area has a massive shelter shortage. More beds alone won’t solve homelessness -- Only a third of the Bay Area’s homeless residents are sheltered, and fewer than half who leave shelters find permanent housing. Luis Melecio-Zambrano and Ethan Varian in the San Jose Mercury$ -- 7/23/26

Education

Cal State gives $340K job to ex-president who stepped down after discrimination lawsuit -- The Cal State chancellor has announced a new consultant role for the outgoing president of Cal State San Bernardino, Tomás Morales, who stepped down after he was sued for discrimination and harassment. Cal State settled his case as part of a $12 million settlement. For the next year, he will consult on international education programs, earning $343,920. Phoebe Huss Calmatters Andrew Khouri in the Los Angeles Times$ -- 7/23/26

UC targets high school course requirements amid SAT debate. What aspiring students need to know -- As UC reconsiders whether to bring back SAT and ACT scores, faculty are also launching a review of the high school course requirements for admission. Jaweed Kaleem in the Los Angeles Times$ -- 7/23/26

Climate

How climate change could redraw California’s wine map -- Researchers from Japan’s Tohoku University published a granular investigation of California viticulture in a changing climate and found a redrawn map of prime wine regions. Corinne Purtill in the Los Angeles Times$ -- 7/23/26

Also

They’re on our flag, but do long-gone grizzly bears belong in modern California? -- Democrats are advancing a bill over objections from rural residents, ranchers and Republicans that would study whether California should bring back grizzly bears. Ryan Sabalow Calmatters -- 7/23/26

Bears Are Running Amok in Lake Tahoe and Causing Chaos Among Locals -- Peter and Barbie Fons were washing dishes after dinner when they looked up to see a bear in the living room. “He’s just standing there, you know, on all fours, and he’s got drool coming down,” recalled Peter, 69. “And he walks around the couch and does a big ol’ pee on the floor.” Jim Carlton, Jessica Hadley in the Wall Street Journal$ -- 7/23/26

 

Barabak: ‘The scope of corruption ... is breathtaking.’ Schiff takes on Trump, again -- In a floor speech, California’s senator plans to assay the president’s conflicts of interest and offer a prescription for cleansing once Trump leaves office. He warns against numbness or complacency in the face of the president’s abundant outrages. Mark Z. Barabak in the Los Angeles Times$ -- 7/23/26

Arellano: Go visit Trump’s White House, Dodgers — but stand up for L.A. while you’re there -- When a pitcher purposely throws high and inside, the batter has four choices. Gustavo Arellano in the Los Angeles Times$ -- 7/23/26

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Trump adds condition to nuclear deal with Saudi Arabia, throwing pact into doubt -- Saudi Arabia would need to normalize relations with Israel as a condition of a nuclear deal with the United States, President Donald Trump said. Michael Birnbaum and Evan Halper in the Washington Post$ -- 7/23/26

Iran Digs In After Latest Trump Threat on Civilian Targets -- Iranian leaders dug in against President Trump’s threats on Wednesday to strike bridges and power plants in Iran if it targeted any more ships in the Strait of Hormuz, with the foreign minister warning that his country would fight “an eye for an eye.” Eric Schmitt, Shirin Hakim, Alan Yuhas and Pranav Baskar in the New York Times$ -- 7/23/26

U.S. Surges Forces Toward Middle East, Giving Trump Options to Expand Iran War -- The U.S. is surging forces, medics and weaponry to the Middle East to give President Trump more muscular military options as he considers expanding the conflict against Iran, according to people familiar with the matter. Shelby Holliday, Lara Seligman and Stephen Kalin in the Wall Street Journal$ -- 7/23/26

What Visuals Show About Recent Damage to U.S. Military Sites in the Middle East -- Iranian attacks on nine U.S. locations across the Middle East in the two weeks since the cease-fire broke down show that the country maintains an ability to inflict damage on precise targets, despite the Trump administration’s repeated claims that Iran’s military capabilities have been diminished or destroyed. Aric Toler and Christoph Koettl in the New York Times$ -- 7/23/26

‘We’re getting into an ugly phase’: Trump’s new tariffs are angering voters and US allies alike -- Tariffs are back — and they couldn’t come at a worse time for the GOP. Megan Messerly and Daniel Desrochers Politico -- 7/23/26

Attacks in Red Sea Send Oil Prices Over $100 a Barrel -- The price of Brent crude soared after Iran’s Houthi allies in Yemen claimed strikes on two Saudi tankers. The House cast a second vote to rein in President Trump’s war powers, with four Republicans joining Democrats to rebuke the president. Max Bearak and Leo Sands in the New York Times$ -- 7/23/26

How Trump Is Getting Richer in Office -- Since returning to office, President Trump has made huge amounts of money from cryptocurrency and foreign investments. Andrea Fuller, Daniel Wood and Ben Protess in the New York Times$ -- 7/23/26

 

California Policy and Politics Wednesday

Paramount wins European regulators’ blessing to buy Warner Bros. Discovery -- On Wednesday, the European Commission gave its consent, allowing tech scion David Ellison’s industry-reshaping merger to move forward in the countries that make up the European Union. Meg James in the Los Angeles Times$ -- 7/22/26

 

Newsom’s populist act: Oppose state billionaire tax, embrace federal one -- With proposals to tax the rich, Gavin Newsom is playing to a 2028 national audience anxious about artificial intelligence. As governor, he’s walked a fine line on taxes for years. Jeanne Kuang Calmatters -- 7/22/26

Steve Hilton embraces his Trump endorsement. But in new ad, he asks voters to ignore it -- Republican Steve Hilton is trying to overcome one of his biggest challenges to becoming governor of California: his allegiance to President Donald Trump. Joe Garofoli in the San Francisco Chronicle$ Ben Paviour in the Sacramento Bee$ -- 7/22/26

California Democrats blast FCC in KABC, KGO license reviews -- More than a dozen California Democrats are confronting the FCC over its rare early review of Disney’s ABC station licenses, calling the process ideologically tainted and aimed at punishing critical media coverage. Meg James in the Los Angeles Times$ -- 7/22/26

 

Trump’s new immigration strategy revealed in purchase of 2 ICE detention centers in California -- The Trump administration is trying to lock down immigration detention capacity in California despite opposition from the state’s Democratic leaders. Wendy Fry and Nigel Duara Calmatters -- 7/22/26

HHS withholds $867 million in Medicaid payments to California as part of ‘crackdown on fraud’ -- The Trump administration is blocking $867 million in Medidaid funds to California and $199 million to Minnesota, citing suspected fraud in in-home care and immigrant eligibility. Gov. Gavin Newsom denounced the freeze as a political stunt. Ben Wieder and Dakota Smith in the Los Angeles Times$ -- 7/22/26

Super pollutants — California sues Trump administration for ignoring climate-changing fridge chemicals -- California and 19 other attorneys generals are suing the Environmental Protection Agency for reversing action on high-polluting refrigerants. Blanca Begert in the Los Angeles Times$ Liz Essley Whyte in the Wall Street Journal$ Sarah Kliff in the New York Times$ -- 7/22/26

 

Wildfire survivors angered as utility-funded group claims to represent them -- A group claiming to represent California fire survivors began paying for social media ads this spring, calling on lawmakers to take action to reduce the rising cost of wildfires. The group was created by utilities that have ignited six of the state’s most destructive fires. Melody Petersen in the Los Angeles Times$ -- 7/22/26

S.F. approves city’s largest budget ever while closing $642 million deficit -- The San Francisco Board of Supervisors voted on Tuesday to approve a $16.9 billion budget deal, closing a deficit of more than $640 million while avoiding many of the most painful cuts labor groups and nonprofits had feared. Alyce McFadden in the San Francisco Chronicle$ -- 7/22/26

‘The money is just obscene’: Inside Mayor Lurie's funding machine reshaping S.F. politics -- Well-heeled donors aligned with the mayor have been eager to support him financially, both at the ballot and at City Hall. J.D. Morris in the San Francisco Chronicle$ -- 7/22/26

Adam Schiff pushes federal judicial reform. ‘Americans deserve nothing less’ -- Schiff said years of reporting detailing undisclosed gifts, financial conflicts of interest and controversies involving Supreme Court justices have undermined public confidence in the federal judiciary and prompted the legislative package. Naomi Taxay in the Sacramento Bee$ -- 7/22/26

Foreclosure Tax

Oakland could tap its distressed downtown real estate for revenue with ‘foreclosure tax’ -- A rule of thumb for city finances: if the real estate market is doing well, so are city coffers. But now, as a number of Oakland apartment and office buildings face foreclosure, city leaders are looking to capture revenue from a downturn too. Kate Talerico in the San Francisco Chronicle$ -- 7/22/26

Marketplace

California wouldn’t be the right place to launch California Pizza Kitchen today, co-founder says -- One of the founders of California Pizza Kitchen says that if he were to open the once-hot gourmet chain today, he would choose Florida over California. Lily Wright in the Los Angeles Times$ -- 7/22/26

Workplace

Pixar and National Geographic hit in latest round of Disney layoffs -- Walt Disney Co. is laying off several hundred employees, including at Pixar Animation Studios and National Geographic, a company spokesperson said Tuesday. Samantha Masunaga in the Los Angeles Times$ -- 7/22/26

This coastal city promised farmworkers affordable housing. Now, opponents are lining up against it -- In the YIMBY vs. NIMBY world of state housing politics, all eyes will be on Half Moon Bay Tuesday night. J.K. Dineen in the San Francisco Chronicle$ -- 7/22/26

North America’s largest mushroom producer to cut 253 jobs in Bay Area -- The Watsonville-based company said it’s transitioning from a mushroom farm and packing facility at 642 Hale Ave. into solely a packing facility. The company was founded in 1971 and is North America’s largest mushroom producer, according to analyst reports. Roland Li in the San Francisco Chronicle$ -- 7/22/26

AI

OpenAI Models Escaped and Hacked a Company in Cybersecurity Test Gone Wrong -- Before they could penetrate Hugging Face’s defenses, the models needed a way onto the internet. They found one. It’s the stuff of cybersecurity nightmares. On Tuesday, OpenAI said two artificial intelligence systems it was testing broke out of their test environment, hacked their way onto the internet and broke into another company. Robert McMillan and Amrith Ramkumar in the Wall Street Journal$ Matt O’Brien Associated Press Gerrit De Vynck in the Washington Post$ -- 7/22/26

They built AI. Now Silicon Valley workers protest its threat to jobs and humanity -- In the heart of Silicon Valley, tech workers are turning against the AI boom they helped create, staging protests over job losses, runaway algorithms and fears that powerful systems could imperil humanity. Queenie Wong in the Los Angeles Times$ -- 7/22/26

Sony Music Entertainment files new lawsuit against AI startup Udio -- Sony Music has filed a new lawsuit accusing AI music startup Udio of infringing on more than 30,000 recordings allegedly scraped from YouTube to train its song‑generating technology. Wendy Lee in the Los Angeles Times$ -- 7/22/26

ChatGPT Led to a Man’s Near-Fatal Health Crisis, Lawsuit Claims -- The case appears to be the first to argue that a chatbot’s advice harmed someone seeking guidance about a medical condition. Teddy Rosenbluth in the New York Times$ -- 7/22/26

Water

‘A five-alarm fire’: Western reservoirs that supply California fall to record low levels -- The Colorado River’s largest reservoirs, Lake Mead and Lake Powell, have declined to their lowest combined levels on record. Researchers say the new low underscores the urgent need to cut water use in the seven states that depend on the river. Ian James in the Los Angeles Times$ -- 7/22/26

Homeless

Over 3 years, homeless nonprofit paid more than $1.7 million to companies owned by its chief executive -- Once a small nonprofit, A Step to Freedom rapidly expanded on taxpayer funding while paying more than $1.7 million to companies owned by its chief executive. Andrew Khouri and Alene Tchekmedyian in the Los Angeles Times$ -- 7/22/26

Housing

S.F. cuts millions in funding to troubled housing nonprofit after Chronicle investigation -- The move away from HomeRise represents a critical challenge for the city and Mayor Daniel Lurie, who now must seek new providers to serve more than 400 of the city’s most vulnerable residents. Matthew Mitchell, Susie Neilson in the San Francisco Chronicle$ -- 7/22/26

Education

If your degree doesn’t pay enough, you can’t borrow. Federal loans cut for low-wage programs -- A new Trump administration rule will cut off federal student loans for college programs whose graduates consistently earn low incomes. Cosmetology, arts and some mental health programs face the highest risk. Andrew Khouri and Francesca Pinney in the Los Angeles Times$ -- 7/22/26

Also

The dark side of making daylight saving time permanent in California: How late would our sunrises get? -- Were Congress to adopt permanent daylight saving time year-round, eliminating the need to change the clocks twice a year, Los Angeles would see its latest sunrise of the year at 8 a.m. Sacramento would see sunrise as late as 8:24 a.m., and San Francisco, 8:25 a.m. Crescent City, on the northwestern tip of California? A sunrise of 8:44 a.m. Rong-Gong Lin II in the Los Angeles Times$ -- 7/22/26

Iconic Beachfront Estates Are on Discount in Malibu’s Sluggish Post-Fire Recovery -- One of the most desirable, celebrity-packed coastal stretches of California has a glut of luxury homes on the market. Nicholas G. Miller and Paul Kiernan in the Wall Street Journal$ -- 7/22/26

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‘A politically impossible situation’: New poll shows Trump voters losing patience with Iran war -- The share of MAGA voters who think the war is worth the economic cost has fallen to roughly over a third, down from 50 percent in May, the Politico Poll found. Megan Messerly Politico -- 7/22/26

Trump Says U.S. Will Bomb Iran’s Power Plants, Bridges if Tehran Strikes Ships -- President Trump threatened to destroy an Iranian bridge or power plant for every attack Iran makes on vessels in the Strait of Hormuz. Lara Seligman in the Wall Street Journal$ Edward Wong, Yan Zhuang, Leo Sands and Alan Yuhas in the New York Times$ -- 7/22/26

Judge says Trump must hand over financial records to BBC -- A federal magistrate judge ruled Tuesday that President Donald Trump must turn over detailed financial information in connection with his defamation lawsuit against the BBC. Josh Gerstein Politico -- 7/22/26

Trump Approves Landmark Nuclear Deal With Saudi Arabia in Big Win for Kingdom -- The deal could mean large profits for American companies but also is likely to raise concerns about nuclear proliferation in Middle East. Michael R. Gordon and Stephen Kalin in the Wall Street Journal$ David E. Sanger, Edward Wong and William J. Broad in the New York Times$ -- 7/22/26