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Public defenders, foster kids, climate: Programs created during California's boom may stall amid deficit

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Public defenders, foster kids, climate: Programs created during California's boom may stall amid deficit

Just a few years ago, California’s budget was overflowing with a record high surplus, spurring the creation of a slew of programs reflecting the state’s liberal ideals.

Democrats who control the state Capitol funded pilots to test new ways to support foster youth, help oil workers transition to cleaner industries and prevent more Californians from becoming homeless — just some of the ambitious ideas that became reality when the budget was flush.

Now, as the state faces an enormous budget deficit that the nonpartisan Legislative Analyst’s Office predicted in February could be as much as $73 billion, some of those programs could come to a screeching halt.

Gov. Gavin Newsom and Democratic lawmakers are considering significant cuts to some of the very initiatives they recently helped launch while promising to “protect our progress.”

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It’s both a reflection of California’s wild budget fluctuations and what can happen in a one-party state known as a progressive policy trailblazer when financial times are good.

For Republicans, it’s an “I told you so” moment.

“The surpluses were absolutely abnormal. They should have put much more money into the budgetary reserve than they did,” said Sen. Roger Niello (R-Fair Oaks), vice chair of the Senate Budget Committee.

Newsom’s budget last year included record reserves of nearly $38 billion, but for those in the minority party like Niello, more could have been put away in lieu of creating costly new programs.

“Let’s not get too crazy with these huge revenues,” is the approach Democrats should have taken, Niello said.

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Organizations such as the California Budget Policy Center, which advocates for low-income residents and policies that curb inequities, argue there’s nothing wrong with trying out new ideas when the money is there.

“The state needs these opportunities to experiment and practice innovation because you can improve the efficiency and effectiveness during those periods of time,” said Chris Hoene, executive director of the center. “The deficit is forcing them to pull back on a significant share of programs but … if there are better revenue periods ahead, they have said they will continue to make those investments.”

Reducing or altogether eliminating newer programs that are still being tested is better than cutting long established programs that Californians rely on, said H.D. Palmer, a spokesperson for Newsom’s Department of Finance.

“These clearly are proposals that wouldn’t be put forward were [it] not for the fact that we’ve got a substantial shortfall,” Palmer said. “It is understandable that people would have objections to these proposals. The question then becomes: What alternatives would people want to put forward, if you choose not to do these measures, that would provide us a like amount of savings to close the shortfall?”

Sen. Dave Min (D-Irvine) put it more bluntly during a legislative budget meeting held at the Capitol last week: “I’ll just be honest, this sucks.”

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Newsom signed into law this week a budget agreement made with lawmakers that reduces the deficit by $17 billion, though it’s only a first step toward closing the yawning gap in the state’s spending plan.

As negotiations continue leading up to the June 15 deadline for lawmakers to pass a budget, here are some of the pilot programs Newsom has suggested scaling back or eliminating:

Support for public defenders and eligible prisoners

Prisoners who can’t afford to pay private attorneys and are eligible to have their sentences shortened could potentially stay behind bars longer due to one proposed funding reduction.

In 2021, a public defense pilot program was created to help attorneys cope with a backlog of cases involving prisoners eligible for earlier release under the state’s latest progressive resentencing laws.

Under the program, county public defender offices have received $100 million, collectively helping free more than 8,000 people in the program’s first six months, according to the California Board of State and Community Corrections. Many of those beneficiaries were charged with murder because of their involvement in a felony that led to a death, even if they were not the actual killer — a remnant of a law that California overturned in 2019.

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The program now faces a $40-million reduction — a move proponents say could render some of California’s resentencing laws useless because understaffed and overburdened offices won’t be able to adequately assist those eligible.

A representative for Newsom said the funding given so far “still provides data for the evaluation of the results” of the program. But Ricardo Garcia, public defender for Los Angeles County, says it will hamper the state’s efforts to “right some of the mistakes of the past.”

In Los Angeles County, the program has led to the release of more than 100 prisoners, representing 685 fewer years of total potential incarceration, according to Garcia. The program has allowed Garcia’s office to hire more public defenders, social workers and support staff as they represent more than 800 eligible clients who await resentencing.

“Having all these statutes in place … isn’t very helpful if we don’t have the resources to implement it and to really make them effective,” Garcia said.

Help for struggling foster kids

Since 2019, thousands of foster kids — and some of their caretakers — have been able to call a 24/7 hotline for help with everyday conflicts and receive expert support.

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The urgent response system was prompted by concerns about “placement disruptions” that can lead to instability and possibly homelessness for the already vulnerable youths.

The hotline annually serves about 5,000 foster children and caregivers, according to state data.

Child welfare advocates are calling on the governor and lawmakers to reconsider a $30-million proposed reduction — a cut they say will shutter the program entirely.

Foster placement changes in California decreased by 16% since the launch of the hotline, according to the data, and advocates say that’s no coincidence.

“We’re certain cutting it will lead to serious negative outcomes for foster children, including increased hospitalization and criminalization,” Ted Lempert, president of Children Now, said.

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Funding for low-income housing

In 2023 alone, more than 100,000 Californians had to move because the owners of their homes fell behind on their bills, according to the Community Landtrust Network.

The foreclosure intervention housing preservation program was launched as a way to prevent displacement of renters. It offers grants to residents and nonprofits so they can buy properties at risk of foreclosure and keep them available as homes for people with low incomes.

Proponents of the program called it an “unprecedented” solution to the state’s homelessness crisis because it allows at-risk renters to stay where they are instead of potentially being forced onto the streets or into shelters.

Newsom proposed cutting $248 million meant for the program over three years — about half its total budget. Advocates are urging him to change his mind, as the funding has not even yet been disbursed.

“The need for the program is too great and both [the California Department of Housing & Community Development] and other key stakeholders have sunk too many resources into this pioneering housing strategy to hobble it now,” the Community Landtrust Network said in a statement.

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A slew of climate friendly programs

Low-income Californians at the highest risk of wildfires destroying their homes, and oil and gas workers at risk of losing their jobs, are among those who could feel the brunt of climate programs now on the chopping block.

Funding reductions are proposed for a home hardening initiative, a program that helps workers find new jobs as the state moves away from fossil fuels, and a program that promotes composting in local governments.

The proposed reductions have environmental activists concerned, even as the budget draft maintains billions in investments to curb climate change and California is considered an international leader on the issue.

“The state needs to accelerate its efforts to prepare, not pull back — especially in vulnerable and underresourced communities,” Zack Cefalu, a legislative affairs analyst for the League of California Cities, said.

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Nearly 20 states sue HHS over declaration to restrict gender transition treatment for minors

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Nearly 20 states sue HHS over declaration to restrict gender transition treatment for minors

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A group of 19 Democrat-led states and Washington, D.C., filed a lawsuit against the Trump administration over a declaration that aims to restrict gender transition treatment for minors.

The lawsuit against the U.S. Department of Health and Human Services; its secretary, Robert F. Kennedy Jr.; and its inspector general comes after the declaration issued last week described treatments such as puberty blockers, hormone therapy and gender surgeries as unsafe and ineffective for children experiencing gender dysphoria.

The declaration also warned doctors they could be excluded from federal health programs, including Medicare and Medicaid, if they provide these treatments to minors.

The move seeks to build on President Donald Trump’s executive order in January calling on HHS to protect children from “chemical and surgical mutilation.”

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HHS UNLEASHES SWEEPING CRACKDOWN ON CHILD ‘SEX-REJECTING PROCEDURES,’ THREATENS HOSPITAL, MEDICAID FUNDING

The lawsuit was filed against the U.S. Department of Health and Human Services; its secretary, Robert F. Kennedy Jr.; and its inspector general. (Elizabeth Frantz/Reuters)

“We are taking six decisive actions guided by gold standard science and the week one executive order from President Trump to protect children from chemical and surgical mutilation,” Kennedy said during a press conference last week.

HHS has also proposed new rules designed to further block gender transition treatment for minors, although the lawsuit does not address the rules, which have yet to be finalized.

The states’ lawsuit, filed Tuesday in Eugene, Oregon, argues that the declaration is inaccurate and unlawful and urges the court to prevent it from being enforced.

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“Secretary Kennedy cannot unilaterally change medical standards by posting a document online, and no one should lose access to medically necessary health care because their federal government tried to interfere in decisions that belong in doctors’ offices,” New York Attorney General Letitia James, who led the lawsuit, said in a statement.

The lawsuit claims the declaration attempts to pressure providers into ending gender transition treatment for young people and circumvent legal requirements for policy changes. The complaint said federal law requires the public be given notice and an opportunity to comment before substantively amending health policy and that neither of these were done before the declaration was released.

HHS’ move seeks to build on President Donald Trump’s executive order in January calling on HHS to protect children from “chemical and surgical mutilation.” (Tom Brenner for The Washington Post via Getty Images)

The declaration based its conclusions on a peer-reviewed report that the department conducted earlier this year that called for more reliance on behavioral therapy rather than broad gender transition treatment for minors with gender dysphoria.

The report raised questions about standards for the treatment of transgender children issued by the World Professional Association for Transgender Health and brought concerns that youths may be too young to give consent to life-changing treatments that could result in future infertility.

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Major medical groups and physicians who treat transgender children have criticized the report as inaccurate.

HHS also announced last week two proposed federal rules — one to cut off federal Medicaid and Medicare funding from hospitals that offer gender transition treatment to children and another to block federal Medicaid money from being used for these procedures.

HOUSE APPROVES MTG-SPONSORED BILL TO CRIMINALIZE GENDER TRANSITION TREATMENT FOR MINORS

New York Attorney General Letitia James led the lawsuit against the Trump administration. (Michael M. Santiago/Getty Images)

The proposals have not yet been made final and are not legally binding because they must go through a lengthy rulemaking process and public comment before they can be enforced.

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Several major medical providers have already pulled back on gender transition treatment for youths since Trump returned to office, even those in Democrat-led states where the procedures are legal under state law.

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Medicaid programs in just under half of states currently cover gender transition treatment. At least 27 states have adopted laws restricting or banning the treatment, and the Supreme Court’s decision this year upholding Tennessee’s ban likely means other state laws will remain in place.

Democrat attorneys general from California, Colorado, Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New Mexico, Oregon, Rhode Island, Vermont, Wisconsin, Washington state and Washington, D.C., as well as Pennsylvania’s Democrat governor, joined James in the lawsuit.

The Associated Press contributed to this report.

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Claims about Trump in Epstein files are ‘untrue,’ the Justice Department says

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Claims about Trump in Epstein files are ‘untrue,’ the Justice Department says

Tips provided to federal investigators about Donald Trump’s alleged involvement in Jeffrey Epstein’s schemes with young women and girls are “sensationalist” and “untrue,” the Justice Department said on Tuesday, after a new tranche of files released from the probe featured multiple references to the president.

The documents include a limousine driver reportedly overhearing Trump discussing a man named Jeffrey “abusing” a girl, and an alleged victim accusing Trump and Epstein of rape. It is unclear whether the FBI followed up on the tips. The alleged rape victim died from a gunshot wound to the head after reporting the incident.

Nowhere in the newly released files do federal law enforcement agents or prosecutors indicate that Trump was suspected of wrongdoing, or that Trump — whose friendship with Epstein lasted through the mid-2000s — was investigated himself.

But one unidentified federal prosecutor noted in a 2020 email that Trump had flown on Epstein’s private jet “many more times than previously has been reported,” including over a time period when Ghislaine Maxwell, Epstein’s top confidante who would ultimately be convicted on five federal counts of sex trafficking and abuse, was being investigated for criminal activity.

The Justice Department released an unusual statement unequivocally defending the president.

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“Some of these documents contain untrue and sensationalist claims made against President Trump that were submitted to the FBI right before the 2020 election,” the Justice Department statement read. “To be clear: the claims are unfounded and false, and if they had a shred of credibility, they certainly would have been weaponized against President Trump already.”

“Nevertheless, out of our commitment to the law and transparency, the DOJ is releasing these documents with the legally required protections for Epstein’s victims,” the department added.

The Justice Department files were released with heavy redactions after bipartisan lawmakers in Congress passed a new law compelling it to do so, despite Trump lobbying Republicans aggressively over the summer and fall to oppose the bill. The president ultimately signed the Epstein Files Transparency Act into law after the legislation passed with veto-proof majorities in both chambers.

One newly released file containing a letter purportedly from Epstein — a notorious child sex offender who died in jail while awaiting federal trial on sex-trafficking charges — drew widespread attention online, but was held up by the Justice Department as an example of faulty or misleading information contained in the files.

The letter appeared to be sent by Epstein to Larry Nassar, another convicted sex offender, shortly before Epstein’s death. The letter’s author suggested that Nassar would learn after receiving the note that Epstein had “taken the ‘short route’ home,” possibly referring to his suicide. It was postmarked from Virginia on Aug. 13, 2019, despite Epstein’s death in a Manhattan jail three days prior.

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“Our president shares our love of young, nubile girls,” the letter reads. “When a young beauty walked by he loved to ‘grab snatch,’ whereas we ended up snatching grub in the mess halls of the system. Life is unfair.”

The Justice Department said that the FBI had confirmed that the letter is “FAKE” after it made the rounds on Tuesday.

“This fake letter serves as a reminder that just because a document is released by the Department of Justice does not make the allegations or claims within the document factual,” the department posted on social media. “Nevertheless, the DOJ will continue to release all material required by law.”

The department has faced bipartisan scrutiny since failing to release all of the Epstein files in its possession by Dec. 19, the legal deadline for it to do so, and for redacting material on the vast majority of the documents.

Justice Department officials said they were following the law by protecting victims with the redactions. The Epstein Files Transparency Act also directs the department not to redact images or references to prominent or political figures, and to provide an explanation for each and every redaction in writing.

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The latest release, just days before the Christmas holiday, includes roughly 30,000 documents, the department said. Hundreds of thousands more are expected to be released in the coming weeks.

Democrats on the House Oversight Committee released a statement in response to the Tuesday release accusing the Justice Department of a “cover-up,” writing on social media, “the new DOJ documents raise serious questions about the relationship between Epstein and Donald Trump.”

Documents from Epstein’s private estate released by the oversight committee earlier this fall had already cast a spotlight on that relationship, revealing Epstein had written in emails to associates that Trump “knew about the girls.”

The latest documents release also includes an email from an individual identified as “A,” claiming to stay at Balmoral Castle, a royal residence in Scotland, asking Maxwell if she had found him “some new inappropriate friends.” Andrew Mountbatten-Windsor, formerly known as Prince Andrew, has come under intense scrutiny over his ties to Epstein in recent years.

Speaking at his Mar-a-Lago resort in Florida on Monday, Trump said the continuing Epstein scandal amounts to a “distraction” from Republican successes, and expressed disapproval over the release of images in the files that reveal associates of Epstein.

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“I believe they gave over 100,000 pages of documents, and there’s tremendous backlash,” Trump told reporters. “It’s an interesting question, because a lot of people are very angry that pictures are being released of other people that really had nothing to do with Epstein. But they’re in a picture with him because he was at a party, and you ruin a reputation of somebody. So a lot of people are very angry that this continues.”

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Nick Fuentes says he’ll campaign against Vivek Ramaswamy in Ohio in slur-laced rant

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Nick Fuentes says he’ll campaign against Vivek Ramaswamy in Ohio in slur-laced rant

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White nationalist Nick Fuentes vowed to campaign against Vivek Ramaswamy in a slur-laced rant denouncing the Republican’s Ohio governor bid. 

The declaration came just days after Ramaswamy called out Fuentes during a speech at Turning Point USA’s AmericaFest conference in which he criticized Fuentes over some of his inflammatory remarks. 

“I think I’m going to go to Ohio and the word that we are looking for is denial. We have to deny Vivek Ramaswamy the governorship. This is the only race I care about in ‘26. It’s the only one I care about,” Fuentes said during a Tuesday livestream. He also used a slur to describe Ramaswamy and said he does not care if a Democrat defeats him in the governor’s race.

When asked by Fox News Digital for a response, a spokesperson for Ramaswamy’s campaign said on Wednesday, “We’re focused on the issues that matter most to Ohioans, not fringe voices that prefer a far-left Democrat to the Trump-endorsed conservative.”

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VIVEK RAMASWAMY TURNS TO CONSERVATIVE YOUTH TO SHAPE THE MOVEMENT’S NEXT PHASE, ANALYZES 2026 RACES 

Vivek Ramaswamy speaks during Turning Point USA’s AmericaFest conference on Friday, Dec. 19, 2025. At right is White nationalist Nick Fuentes outside a Turning Point event on June 15, 2024, in Detroit. (Cheney Orr/Reuters; Dominic Gwinn/Getty Images)

Ramaswamy laid out his vision for what it means to be an American during remarks Friday at AmericaFest. 

“What does it mean to be an American in the year 2026? It means we believe in those ideals of 1776,” he said at the Turning Point USA event. “It means we believe in merit, that the best person gets the job regardless of their skin color.”

“It means we believe in free speech and open debate,” he added. “Even for those who disagree with us, from Nick Fuentes to Jimmy Kimmel, you get to speak your mind in the open without the government censoring you.”

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RAMASWAMY REVEALS MAIN LESSON LEARNED BY REPUBLICANS AFTER DEMOCRATS’ BIG WINS ON ELECTION DAY

Vivek Ramaswamy speaks during Turning Point USA’s AmericaFest 2025, on Friday, Dec. 19, 2025, in Phoenix. (Jon Cherry/AP)

Ramaswamy then said, “If you believe in normalizing hatred toward any ethnic group, toward Whites, toward Blacks, toward Hispanics, toward Jews, toward Indians, you have no place in the future of the conservative movement, period.” 

“And I will not apologize for that. I will not hedge when I say it,” Ramaswamy continued. “If you believe, and you will forgive me for giving you an exact quote from our online commentator, Nick Fuentes. If you believe that Hitler was pretty f—— cool, you have no place in the future of the conservative movement. You can debate foreign aid, Israel all you want. That’s fine. That’s fair. But you have no place with that level of hatred.” 

Ramaswamy declared his candidacy for the Ohio governorship in late February.

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Ramaswamy is running to replace Ohio Gov. Mike DeWine, shown here in the Old Senate Chamber in the U.S. Capitol on Jan. 21, 2025. (Bill Clark/CQ-Roll Call, Inc via Getty Images)

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Current Ohio Gov. Mike DeWine, who is also a Republican, is term-limited and will be departing office in January 2027. 

Fox News Digital’s David Rutz contributed to this report. 

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