California Policy and Politics Thursday

The ‘nightmare’ budget scenario looming over California — and Gavin Newsom -- Two emerging threats are looming over California’s future — the prospect of an AI slowdown colliding with an aggressive wealth tax proposal that has already driven a handful of high-profile billionaires to flee the state. Tyler Katzenberger and Eric He Politico -- 01/22/26

Billionaire tax proposal roils Bay Area havens, divides politicians -- When billionaire venture capitalist Vinod Khosla publicly branded Rep. Ro Khanna a “commie comrade” over the weekend, it was more than a personal jab — it was a sign of how fiercely a new proposal to tax California’s billionaires is dividing Silicon Valley and the state’s political class. Ethan Baron in the San Jose Mercury$ -- 01/22/26

Fearing deficits, California senators ask Gavin Newsom for budget transparency -- A bipartisan group of state senators on Wednesday expressed alarm about budget deficits California is expected to face in upcoming years and called on Gov. Gavin Newsom’s administration to be more transparent with its spending plans. Stephen Hobbs in the Sacramento Bee$ -- 01/22/26

After snub, Newsom completes Davos mission to excoriate Trump on world stage -- After his first speech was cancelled, allegedly under pressure from the Trump administration, Gov. Gavin Newsom got his chance early Thursday morning to excoriate the president in front of the business and political elite gathered in Davos, Switzerland. Andrew Graham in the Sacramento Bee$ -- 01/22/26

 

Immigration agent shoots at suspect during operation in South L.A. -- A federal immigration agent shot at a suspect during a targeted operation in South L.A. on Wednesday morning, drawing a crowd of protesters to the shut-down street and intensifying safety concerns in the immigrant heavy community. Ruben Vives, Clara Harter and Brittny Mejia in the Los Angeles Times$ -- 01/22/26

Immigration officers assert sweeping power to enter homes without a judge’s warrant, memo says -- Federal immigration officers are asserting sweeping power to forcibly enter people’s homes without a judge’s warrant, according to an internal Immigration and Customs Enforcement memo obtained by The Associated Press, marking a sharp reversal of longstanding guidance meant to respect constitutional limits on government searches. Rebecca Santana Associated Press Hamed Aleaziz in the Wall Street Journal$ -- 01/22/26

Man charged in ‘largest jewelry heist in U.S. history,’ avoids trial by getting deported -- A man facing federal charges in what authorities have called the largest jewelry heist in U.S. history was deported to Ecuador late last month, bringing the case against him to a crashing halt, according to recent court filings. Brittny Mejia and Richard Winton in the Los Angeles Times$ -- 01/22/26

 

A big S.F. tax fight is headed to the ballot. Daniel Lurie wants to stop it -- A political fight over how much San Francisco should lean on big businesses to close a city budget gap widened by President Donald Trump may be headed to voters in the coming months. But not if Mayor Daniel Lurie gets his way. J.D. Morris in the San Francisco Chronicle$ -- 01/22/26

She prosecuted S.F. corruption for the feds. Now she’s taking on City Hall from the inside -- For the first time in its history, San Francisco has hired an inspector general to root out waste, fraud and abuse. Michael Barba in the San Francisco Chronicle$ -- 01/22/26

As California exodus continues, one state bucked the trend -- An estimated half a million more people left California for other states than came in in 2023 and 2024 combined, according to newly released U.S. census data. But there were a few places that the data suggests sent more residents to California than the other way around. Chief among them was Illinois. Danielle Echeverria in the San Francisco Chronicle$ -- 01/22/26

L.A. mayoral candidate Austin Beutner’s daughter dies at 22; cause is unknown -- The daughter of Los Angeles mayoral candidate Austin Beutner died earlier this month, and authorities have not yet determined the cause. Emily Beutner, 22, died at a hospital on Jan. 6, according to information posted on the Los Angeles County Medical Examiner’s website. David Zahniser and Noah Goldberg in the Los Angeles Times$ -- 01/22/26

Workplace

Kaiser nurses plan open-ended strike across California and Hawaii starting Monday -- The union, UNAC/UHCP (United Nurses Association of California/Union of Health Care Professionals), issued a notice to strike last week over what workers say are unsafe staffing levels, access to care and fair wages. Catherine Ho in the San Francisco Chronicle$ -- 01/22/26

Falling enrollment. Budget uncertainty. LAUSD warns of layoffs and cuts -- Los Angeles school officials warned this week of impending staff reductions — including likely layoffs — as they grapple with steadily falling enrollment and a three-year budget projection that ends with a deficit. Howard Blume in the Los Angeles Times$ -- 01/22/26

California College of the Arts begins staff layoffs after Vanderbilt deal -- California College of the Arts has laid off 28 employees, many of them unionized staff members, marking the first round of job cuts tied to the school’s planned closure following a deal to transfer its San Francisco campus to Vanderbilt University. Aidin Vaziri in the San Francisco Chronicle$ -- 01/22/26

S.F. gig staffing company to pay $4.5 million to settle claims it deprived workers of benefits -- San Francisco staffing company WorkWhile will pay $4.5 million to settle a lawsuit filed by City Attorney David Chiu that claimed the company deprived its workers of benefits by misclassifying employees as independent contractors. St. John Barned-Smith in the San Francisco Chronicle$ -- 01/22/26

Housing

Thousands of affordable homes could have been built — if not for $1.2 billion in California fees -- Affordable housing developers paid California cities and counties more than $1.2 billion in “impact fees” over four years, according to a new report. Instead, the report found, that money could have paid for roughly 5,000 additional homes for low-income families. Christian Leonard in the San Francisco Chronicle$ -- 01/22/26

Water

‘Water bankruptcy’ — U.N. scientists say much of the world is irreversibly depleting water -- Agriculture accounts for about 70% of water use. As many regions draw down the water accumulated over millenia, the experts say, much stronger efforts are needed to protect what remains of dwindling water. Ian James in the Los Angeles Times$ -- 01/22/26

Street

Council approves boost in LAPD hiring, despite budget concerns -- On Wednesday, the council finally approved the hiring of up to 410 officers this year after hearing back from the city administrative officer that the money used to fund the positions this year will come from the LAPD’s budget, and not from the city’s general fund. Noah Goldberg in the Los Angeles Times$ -- 01/22/26

Kaiser, PG&E put up $900,000 to help Oakland grow police ranks -- Oakland plans to revive the police department’s Cadet Program in an effort to boost staffing and address public safety concerns, Mayor Barbara Lee announced Wednesday. Jessica Flores in the San Francisco Chronicle$ -- 01/22/26

Also

It’ll cost you $45 to fly without a Real ID starting in February -- Starting next month, travelers who want to board a domestic flight without a Real ID will have to pay $45 to have their identity verified through the Transportation Security Administration’s new security screening program. Karen Garcia in the Los Angeles Times$ -- 01/22/26

At Yosemite, Rangers Are Scarce and Visitors Have Gone Wild -- After the Trump administration’s cuts, workers at the national park are spread too thin to stop people from littering, flying drones and cliff-diving. Soumya Karlamangla, Angus Morton in the New York Times$ -- 01/22/26

POTUS 47

Trump steps back from the brink on Greenland. But the damage has been done -- The president’s effort to acquire Greenland, even with the threat of force off the table, has changed the way allies see the U.S. Eli Stokols and Diana Nerozzi Politico Alex Leary, Daniel Michaels, Bertrand Benoit and Robbie Gramer in the Wall Street Journal$ Lara Jakes, Jim Tankersley and Zolan Kanno-Youngs in the New York Times$ Emily Davies, Cat Zakrzewski and Michael Birnbaum in the Washington Post$ Lauren Aratani and Andrew Roth The Guardian -- 01/22/26

Fact-Checking President Trump’s Davos Speech -- The president gave misleading accounts of the U.S. role in Greenland’s history and the North Atlantic Treaty Organization, among other claims. Linda Qiu in the New York Times$ -- 01/22/26

The U.S. Is Actively Seeking Regime Change in Cuba by the End of the Year -- After ousting Venezuela’s leader, the Trump administration is searching for Havana insiders who could cut a deal to end Communist rule. José de Córdoba, Vera Bergengruen and Deborah Acosta in the Wall Street Journal$ -- 01/22/26

Qatari-Donated Air Force One Is Expected to Begin Flying Trump This Summer -- While the exact delivery date hasn’t yet been determined, it is possible the plane, painted in the red, white and dark-blue scheme favored by the president, could be part of the July festivities celebrating the country’s 250th birthday. Marcus Weisgerber, Josh Dawsey and Meridith McGraw in the Wall Street Journal$ -- 01/22/26

Judge blocks feds from accessing devices seized from Washington Post reporter -- A federal magistrate judge has blocked the FBI from accessing electronic devices it seized from a Washington Post reporter’s Virginia home last week in a court-ordered search as part of an investigation into alleged unauthorized disclosures of classified information. Josh Gerstein and Kyle Cheney Politico Erik Wemple in the New York Times$ Perry Stein in the Washington Post$ -- 01/22/26

Supreme Court Balks at Trump’s Push to Control the Fed -- Supreme Court justices across the ideological spectrum expressed deep unease on Wednesday about President Trump’s attempt to fire a member of the Federal Reserve, with several stressing the importance of a central bank insulated from political pressure. James Romoser and Nick Timiraos in the Wall Street Journal$ Ann E. Marimow in the New York Times$ Justin Jouvenal and Andrew Ackerman in the Washington Post$ -- 01/22/26