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California Policy and Politics Wednesday

Newsom signs off on 100% California tax for money from Trump’s $1.8-billion ‘slush fund’ -- Newsom unveiled his proposal in May, after Trump’s Justice Department said it would create a fund to compensate Trump’s allies who claim they have “suffered weaponization and lawfare” under Biden’s Justice Department. Iris Kwok in the Los Angeles Times$ -- 7/1/26

Deported to Venezuela, then trapped beneath quake rubble -- Among the thousands of dead, injured and missing after earthquakes devastated Venezuela are dozens of recent U.S. deportees who were being held at the Hotel Santuario. Survivors say that doors to the facility were locked and that migrants were left to die inside crumbling walls. Kate Linthicum and Cecilia Sánchez Vidal in the Los Angeles Times$ -- 7/1/26

California lawmaker rolls back new public records barriers after fierce opposition -- The Downey Democrat alarmed First Amendment advocates in March when she introduced a measure that would make it more expensive for some people to get public records from government agencies, which she said was intended to cut down on malicious or profit-driven requests. Kate Wolffe Calmatters -- 7/1/26

Should coastal commission get more power over rebuilding after wildfire? Some lawmakers say yes -- A new proposal considers giving the powerful coastal commission more oversight over homes destroyed by natural disasters. Nadia Lathan Calmatters -- 7/1/26

After threat of cuts, California expands subsidized child care by more than 20,000 spaces -- After talk of potential cuts, California is increasing the number of subsidized child-care spaces. The expansion helps address child-care affordability in California, where many families eligible for financial support are unable to access it. Kate Sequeira in the Los Angeles Times$ -- 7/1/26

Check out these 8 new California laws going into effect in July -- New laws, from the volume of commercials on streaming services to the way foods are labeled in stores, take effect Wednesday. Charlie Borla in the Orange County Register$ -- 7/1/26

Walters: California voters will decide 14 ballot measures, billionaire tax included. There could’ve been more -- The 14 measures that will appear on the Nov. 3 ballot were going to be as many as 20 before last-minute compromises settled three dueling measure conflicts. One pitted personal injury lawyers against rideshare companies, a second involved hospital executives and a health care union, and the third dealt with vote minimums for local taxes. Dan Walters Calmatters -- 7/1/26

Impact of Boyle Heights fire: Rats, rotted food, strong odors, dead birds in LA River -- While the fire is mostly out, the after-effects of the massive cold storage building blaze in Boyle Heights include this puzzle: How to transport 85 million pounds of rotting meat, while protecting residents from rats, powerful odors and environmental damage to the L.A. River. Steve Scauzillo in the LA Daily News -- 7/1/26

Workplace

British regulator may challenge Paramount takeover of Warner Bros. Discovery -- Britain’s culture minister may challenge Paramount Skydance’s takeover of Warner Bros. Discovery — presenting a potential speed bump to David Ellison’s plan to wrap up his $111-billion deal by September. Meg James in the Los Angeles Times$ -- 7/1/26

International Paper to close Elk Grove packaging plant, laying off 130 workers -- The closure is part of the company’s broader effort to streamline operations and reduce costs, which also includes closing facilities in Illinois and New Jersey and ending preprint operations at a Kentucky plant. Camryn Dadey in the Sacramento Bee$ -- 7/1/26

In San Francisco, Even $180,000 Tech Salaries Are No Longer Enough -- As OpenAI and Anthropic prepare to go public, tech workers making six figures are grousing that they cannot compete with the new A.I. elite. Some doubt they can afford to stay. Emmy Martin in the New York Times$ -- 7/1/26

Gov. Newsom’s RTO order starts today. Here’s what we know — what we don’t -- Gov. Gavin Newsom’s return-to-office order has arrived. Roughly 108,000 state workers are now required to work from government offices four days a week after six years of flexible telework policies. William Melhado in the Sacramento Bee$ -- 7/1/26

Marketplace

Gas giants use AI to raise prices, lawsuit says, another algorithmic hit to the cost of living -- A new federal lawsuit by California drivers accuses major gas chains, including Walmart and 7-Eleven, and technology company Kalibrate of using AI software to collude and keep pump prices artificially high. Audrey McGlinchy in the Los Angeles Times$ -- 7/1/26

Housing

SB 79 is here. See which neighborhoods are getting upzoned -- SB 79 kicks in across California on July 1, but L.A. adopted its own plan to spread out the density it brings. See if your neighborhood is set to be upzoned. Jack Flemming in the Los Angeles Times$ -- 7/1/26

Altadena residents unify to pass legislation protecting their community from dense developments -- Over the last several weeks, residents’ have rallied behind SB 1090, a bill that would pause multi-unit building projects in the L.A. County neighborhood. Seamus Bozeman in the Los Angeles Times$ -- 7/1/26

San Diego County apartment vacancies are now the highest this century -- Vacancies have not, in most cases, resulted in noticeable rent decreases. San Diego County average asking rent was $2,583 a month in late June, up 0.5%, in a year. That figure combines studios, one, two and three bedrooms, across nearly 300,000 units spread out across San Diego County. Phillip Molnar in the San Diego Union Tribune -- 7/1/26

San Diego uses $8.5M from developers to create long-awaited fund to preserve low-rent apartments -- New affordable housing preservation fund complements 2025 city law that requires apartment owners to give city first right of refusal when they decide to sell. David Garrick in the San Diego Union Tribune -- 7/1/26

Education

Newsom’s final education budget, by the numbers -- Thanks to robust revenues, Gov. Gavin Newsom secured funding for his signature programs in his eighth and final budget. The budget includes a $2.4 billion increase in special education funding and a $5 billion block grant for districts struggling with declining enrollment. John Fensterwald, Zaidee Stavely, Betty Márquez Rosales, Michael Burke, Diana Lambert, Lasherica Thornton, Emma Gallegos,Yuxuan Xie EdSource -- 7/1/26

Is a UC degree still worth it? New report shows payoff takes longer -- Amid a tough job market for new college graduates and allegations of declining standards for applicants, the University of California system is making the case that a UC degree still pays off. Olivia Borgula in the San Francisco Chronicle$ -- 7/1/26

Power is stripped from state schools superintendents in major education overhaul -- New budget deals means that California voters in November will select a new schools superintendent with an uncertain, but more limited role in education. Howard Blume in the Los Angeles Times$ -- 7/1/26

California may soon test children on math as early as kindergarten in effort to curb dismal scores -- Confronted with math test scores showing that 68% of California public school third-graders do not meet grade-level standards, state lawmakers are considering one way to potentially reverse the trend: Give kindergartners a math test to find out if they are ready for the rigors of first grade. Cierra Morgan in the Los Angeles Times$ -- 7/1/26

How We Can Pay for College Just Changed. What Borrowers Need to Know -- New borrowing limits and fewer repayment options for student loans take effect Wednesday, affecting parents, undergraduates and graduate students. Elyse Goncalves in the Wall Street Journal$ -- 7/1/26

AI

They built the world’s most powerful AI. They’re facing a mystery they can’t explain. -- Today, the search for machine conscioussness is practically mainstream. Once discussed mostly on the margins of the tech industry, the idea has been embraced by some of the most powerful companies in Silicon Valley. Nitasha Tiku in the Washington Post$ -- 7/1/26

Also

USMNT faces rare World Cup chance at Levi’s: ‘This opportunity will really never come back’ -- The red, white and blue knockout round of the World Cup arrives Wednesday at Levi’s Stadium, and if the early games have taught us anything, it is this: “Expect the unexpected,” U.S. team captain Tim Ream said this week. Ann Killion in the San Francisco Chronicle$ -- 7/1/26

After a Tap Heard in Rubble, U.S. Rescue Teams Begin a Grueling Marathon -- The American crew had actually been on its way to a different disaster site. But it stopped, said Trey Espy, an assistant chief with the Los Angeles County Fire Department and the crew’s task force leader. Two search dogs signaled that someone below the mountain of rubble was alive. Special listening devices detected the sound of tapping. That’s when the crew called its base camp for special excavation equipment. Shawn Hubler and Billy Witz in the New York Times$ -- 7/1/26

California swimmer begins unprecedented 900-mile swim down the coast -- The journey that Catherine Breed is about to begin is one that’s never been attempted. Gregory Thomas in the San Francisco Chronicle$ -- 7/1/26

At Mindful Archery, L.A. women take aim at their exes, toxic jobs and Donald Trump -- At Angie Fadel’s Mindful Archery workshops in Los Angeles, women and nonbinary attendees use bow and arrow instruction, somatic breathwork and nature therapy to release stress and find inner strength. Deborah Vankin in the Los Angeles Times$ -- 7/1/26

After Amazon drops OpenAI movie ‘Artificial,’ film finds new home at Neon -- “Artificial,” the movie that chronicles the time when OpenAI Chief Executive Sam Altman was ousted from and later reinstated at the company, has found a new home after Amazon dropped the film earlier this month. Jake Coyle Associated Press -- 7/1/26

This Cell Feeds, Grows and Reproduces. And It’s Manmade -- Scientists have long dreamed of discovering the alchemy by which chemicals can be turned into life. On Wednesday, a team at the University of Minnesota announced that it had taken a major step toward that vision. Carl Zimmer and Marco Hernandez in the New York Times$ -- 7/1/26

POTUS 47

Trump Pulled in at Least $2 Billion After Returning to the White House -- The release of a mandatory financial disclosure for 2025 shows that the Trump family’s holdings, particularly the president’s crypto businesses, were stunningly lucrative. Ben Protess, Andrea Fuller, Eric Lipton and David Yaffe-Bellany in the New York Times$ Bernard Condon Associated Press Clara Ence Morse, Natalie Allison and Andrew Ba Tran in the Washington Post$ -- 7/1/26

Trump’s Moneymaking Run: Unrivaled in Presidential History -- The president’s move to open new business ventures, rather than eliminate potential conflicts, defies a long-held tradition. Eric Lipton in the New York Times$ -- 7/1/26

For crucial federal agencies, the veneer of independence is stripped away -- The ruling letting the president oust members of historically independent agencies without cause has shaken institutions that once believed their protections were secure. Michael Wilner in the Los Angeles Times$ -- 7/1/26

Donald Trump is on a Supreme Court losing streak. Yes, really -- The high court has been friendly terrain for conservative legal causes. But Trump’s own obsessions get a much cooler reception. Kyle Cheney and Josh Gerstein Politico -- 7/1/26