California Policy and Politics Thursday

Immigration raids linked to significant California job losses, analysis finds -- Each month, Edward Flores crunches the numbers. And each month he grows more and more certain of the stark impact of federal immigration raids on California’s economy. Suhauna Hussain in the Los Angeles Times$ -- 01/01/26

California sets up a showdown with Washington by reissuing licenses to migrant truckers -- California has delayed its cancellation of thousands of commercial driver’s licenses held by migrants, setting it up for another showdown with Washington. Nilesh Christopher in the Los Angeles Times$ -- 01/01/26

Trump agrees to return control of California’s National Guard to the state -- President Donald Trump has returned control of California’s National Guard to the state, at least for now, in the wake of the Supreme Court’s refusal to allow him to send National Guard troops from other states to Chicago. Bob Egelko, Sara Libby in the San Francisco Chronicle$ Melody Gutierrez and James Queally in the Los Angeles Times$ Lia Russell and Sharon Bernstein in the Sacramento Bee$ Lauren Kaori Gurley and Justin Jouvenal in the Washington Post$ -- 1/1/26

How budget bickering and Dolly Parton politics warped California’s Google news deal -- A landmark deal between California and tech titan Google to support local newspapers struggling to stay afloat amid incursions by online competitors and aggressive hedge funds is running into one brick wall after another. Tyler Katzenberger Politico -- 01/01/26

Disney settles with DOJ for alleged child privacy violations with $10 million payment -- The Justice Department had alleged that Disney Worldwide Services and Disney Entertainment Operations failed to accurately identify some YouTube video content as “Made for Kids,” enabling Disney and other parties to collect personal data from children under 13 years old. This information was then used for targeted advertising without parental notice or consent. Stacy Perman in the Los Angeles Times$ -- 1/1/26

Newsom’s Delta tunnel plan hits snag as court rules state lacks authority to issue bonds -- California’s plan to build a 45-mile tunnel under the Sacramento-San Joaquin River Delta to carry water from north to south ran into financial trouble Wednesday when an appeals court ruled that the state lacked authority to issue billions of dollars in bonds to finance the project. Bob Egelko in the San Francisco Chronicle$ -- 1/1/26

Peter Thiel opens Miami office as California ‘billionaire tax’ tensions escalate -- Peter Thiel is formally expanding his footprint in South Florida at a moment when California’s wealthiest residents are reassessing their futures in the state. Aidin Vaziri in the San Francisco Chronicle$ -- 1/1/26

From IVF to AI: California ushers in a wave of far-reaching laws -- Some of the blue state’s new policies stem from long-running battles, while others are responses to Trump 2.0. Lindsey Holden Politico -- 1/1/26

Walters: New year may entertain political junkies, but California’s sluggish economy deserves the spotlight -- As the new year begins, there’s no shortage of political trends to keep Californians preoccupied, entertained or perhaps appalled — particularly the state’s transcontinental feud with President Donald Trump. Dan Walters Calmatters -- 01/01/26

Kurtenbach: Why 2026 promises to be a massive year in Bay Area sports The 2026 Bay Area sports calendar includes the Super Bowl and the World Cup, as well as plenty of intrigue among the Warriors, 49ers and Sharks -- Good riddance to 2025. We survived the atmospheric rivers, Brandon Aiyuk and whatever the heck that was from the Giants’ lineup. But 2026? Oh, 2026 is special. It’s a calendar year stuffed with so much narrative weight it’s threatening to create a new fault line. It’s the year of last chances and new eras. And star power: Boy, do we have it. Dieter Kurtenbach in the San Jose Mercury$ -- 01/01/26

New Laws

California rolls out sweeping new laws for 2026, from cellphone limits in schools to a ban on cat declawing -- Gov. Gavin Newsom’s office this week described 2025 as “the year that would not end.” But it has, and in its aftermath comes a slew of new laws passed that year that will affect the lives of almost every Californian. Katie King and Phil Willon in the Los Angeles Times$ -- 01/01/26

Here are 15 new laws that Californians must start following in 2026 -- California lawmakers and Gov. Gavin Newsom approved more than 900 new laws this year, including measures aimed at countering the influence of President Donald Trump, lowering drug costs and requiring landlords to maintain refrigerators and stoves in apartments. Sophia Bollag in the San Francisco Chronicle$ -- 01/01/26

California expands low-cost divorce option to more couples, particularly those with children -- California’s new law allows more couples to file for divorce jointly for just $435, slashing costs that typically average $17,500 across the state. Previously limited to couples married less than five years with minimal assets, the expanded process now includes families with children and more significant property. Karen Garcia in the Los Angeles Times$ -- 01/01/26

Workplace

A new California law gives the state more power over workplaces. Trump is suing to block it -- A new law backed by California unions gives a state board the right to regulate working conditions and labor rights as the federal labor board’s fate is in limbo. Levi Sumagaysay Calmatters -- 01/01/26

Uber wants to cap attorney fees after crashes. Trial lawyers, scholars oppose it -- A proposed ballot measure backed by a $12 million campaign war chest from Uber is drawing a heated response from trial lawyers who say the tech giant is seeking immunity for liability from crashes caused by its drivers. Andrew Graham in the Sacramento Bee$ -- 1/1/26

AI

Big Tech blocks California data center rules, leaving only a study requirement -- Tools that power artificial intelligence devour energy. But attempts to shield regular Californians from footing the bill in 2025 ended with a law requiring regulators to write a report about the issue by 2027. Alejandro Lazo Calmatters in the San Francisco Chronicle$ -- 01/01/26

California hopes to make state workers more efficient with AI assistant -- That’s the goal of Poppy, a new “digital assistant” powered by ChatGPT and other publicly available generative artificial intelligence tools, which the California Department of Technology began piloting earlier this year. William Melhado in the Sacramento Bee$ -- 1/1/26

Marketplace

How a San Diego startup’s universal flu shot sold for $9 billion -- Inside a single-story brick building in Sorrento Mesa is a small lab sprinkled with beakers, test tubes and incubators that is worth billions of dollars. Noelle Harff in the San Diego Union Tribune$ -- 1/1/26

Education

Three years, not four: The number of UC students fast-tracking college is surging -- Early graduation is surging across the University of California system — and the ripple effect could change how it manages everything from course scheduling to advising. Nanette Asimov in the San Francisco Chronicle$ -- 01/01/26

DTLA

The rise of DTLA: Car crashes, costly surgeries and a $4-billion sex abuse settlement -- A Times investigation examines how Downtown LA Law Group, a firm at the center of L.A. County’s historic settlement over sex abuse in government facilities, rapidly amassed thousands of clients and became a subject of a district attorney’s probe into alleged misconduct. Rebecca Ellis in the Los Angeles Times$ -- 01/01/26

Wildfire

California homeowners could qualify for grants for new roofs and fire safety -- New Safe Homes grants program, taking effect on Jan. 1, 2026, could begin taking applications in the spring, CA insurance department says. Levi Sumagaysay Calmatters -- 01/01/26

‘It’s easy to die there’: Icy Mt. Baldy claims three lives as hikers warn of extreme danger -- Officials have identified one of the three hikers found dead on Mt. Baldy this week as 19-year-old Marcus Muench Casanova of Seal Beach. Casanova fell 500 feet on Monday while hiking Devil’s Backbone, a sharp ridge with steep drops on either side, according to the San Bernardino County Sheriff’s Department. Alex Wigglesworth and Itzel Luna in the Los Angeles Times$ -- 1/1/26

Subclade K, a new flu strain, detected in San Diego County -- Subclade K, the flu variant that caused fall outbreaks in the United Kingdom and Canada, has been detected in San Diego County, the region’s public health department confirmed Wednesday. Paul Sisson in the San Diego Union Tribune$ -- 01/01/26

Real ID

Over 300,000 California Real ID holders must update licenses due to DMV error -- The California Department of Motor Vehicles said this week that about 325,000 people must take steps to maintain valid Real IDs, due to a software issue the agency identified in a review of its systems this winter. Annika Merrilees in the Sacramento Bee$ -- 01/01/26

Street

Prominent California farmer charged with killing estranged wife held on $5.5-million bail -- A prominent Imperial Valley farmer charged with killing his estranged wife was extradited to Arizona on Tuesday, where bail has been set at $5.5 million. Michael Abatti, 63, was arrested on Dec. 23 in the killing of Kerri Ann Abatti, 59. He pleaded not guilty to a charge of first-degree murder on Wednesday in Navajo County Superior Court. Susanne Rust and Alex Wigglesworth in the Los Angeles Times$ -- 1/1/26

Also

Waymos are now coming for your coveted San Francisco parking spots -- A long stretch of curb in San Francisco’s Mission District might contain a whole menagerie of parked vehicles: hatchbacks, SUVs, dusty pickups, sleek Teslas. And recently, Waymo robotaxis. Rachel Swan in the San Francisco Chronicle$ -- 1/1/26

Cal Poly float wins top award in Rose Parade -- The Cal Poly Universities float took top honors in the 137th Rose Parade on Thursday, winning the Sweepstakes Award for “most beautiful entry.” Hailey Branson-Potts in the Los Angeles Times$ -- 01/01/26

Lopez: ‘Stop exercising, you’re killing yourself.’ Not really, but try more nurture, less torture in 2026 -- Are my exercise routines, which were meant to keep me from falling apart, slowing my demise, or accelerating it? Steve Lopez in the Los Angeles Times$ -- 01/01/26

POTUS 47

Trump’s Tangled Web of Deal-Making, Policy and Riches -- Since his return to office, President Trump and his family have engaged in a moneymaking campaign like none in modern American history. Lazaro Gamio and Amy Schoenfeld Walker in the New York Times$ -- 01/01/26

7 takeaways from Jack Smith’s congressional testimony -- House Republicans decided to publicly release the transcript of special counsel Jack Smith’s Dec. 17 closed-door deposition on New Year’s Eve — while most of Washington was tuned out for the holiday. Kyle Cheney, Hailey Fuchs and Jordain Carney Politico -- 1/1/26

As Signs of Aging Emerge, Trump Responds With Defiance -- President Trump is taking more aspirin than his doctors recommend. He briefly tried wearing compression socks for his swelling ankles, but stopped because he didn’t like them. And he regrets undergoing advanced imaging because it generated scrutiny of his health. Annie Linskey, Josh Dawsey and Meridith McGraw in the Wall Street Journal$ -- 01/01/26

‘Bad governor’: Why Trump issued the first veto of his second term -- President Donald Trump told POLITICO on Wednesday that he vetoed a bipartisan bill to fund a Colorado water project because he views it as a waste of taxpayer money, saying residents are leaving the state under Democratic Colorado Gov. Jared Polis. Sophia Cai Politico -- 1/1/26

Trump Ally Lauren Boebert Blasts Surprise Veto of Colorado Project -- Democrats cast rejection of water measure as retribution for state not freeing imprisoned election clerk. Olivia Beavers in the Wall Street Journal$ Maegan Vazquez and Kadia Goba in the Washington Post$ -- 1/1/26

Under Fire for Trump Rulings, Chief Justice Says Courts Still Check Political Power -- In year-end report, John Roberts expounds on judicial independence as the court faces criticism for being deferential to Trump. James Romoser in the Wall Street Journal$ -- 1/1/26

Kennedy Center’s turbulent year ends with canceled New Year’s Eve shows and record-low ratings -- As New Year’s Eve performances were quietly wiped from the calendar at the Kennedy Center, the cancellations offered a fitting coda to a turbulent year for the nation’s premier performing arts institution. Aidin Vaziri in the San Francisco Chronicle$ -- 01/01/26