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Newsom, Democrats use cuts, reserves and ‘fiscal emergency’ declaration to solve California budget deficit

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Newsom, Democrats use cuts, reserves and ‘fiscal emergency’ declaration to solve California budget deficit

Gov. Gavin Newsom and Democratic lawmakers struck a deal Saturday to make $16 billion in cuts, declare a statewide fiscal emergency and pull money from the state’s rainy-day reserves to balance a $46.8-billion budget deficit in California.

The agreement for a $297.7-billion spending plan is the result of weeks of contentious negotiations with labor unions and business interests after weaker than anticipated revenues forced Newsom and lawmakers to scale back California’s progressive policy agenda. The shortfall inspired a tug-of-war over coveted state dollars that has caused rifts between the governor and some of his closest allies at the Capitol.

Among the more high-profile changes, the 2024-25 budget plan delays a minimum wage increase for healthcare workers until at least October, cuts $1.1 billion for affordable housing and slashes $750 million in funding for the state prison system.

California’s business community also took a hit with the three-year suspension of nearly $15 billion in tax breaks a year earlier than Newsom initially proposed.

“This agreement sets the state on a path for long-term fiscal stability — addressing the current shortfall and strengthening budget resilience down the road,” Newsom said in statement. “We’re making sure to preserve programs that serve millions of Californians, including key funding for education, health care, expanded behavioral health services, and combatting homelessness.”

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The deficit marks a dramatic reversal of California’s financial standing from a projected $100-billion surplus two years ago and creates a challenging political narrative for Newsom, who often boasts of the state being an essential economic engine for the nation.

The governor is required by law to declare a statewide budget emergency before he can take money from the reserves to solve the deficit. But an emergency declaration gives fodder to critics who have accused Democrats of mismanaging the state’s finances and overspending.

Despite the shortfall, the California economy remains strong and the state has more revenue to spend than when he took office.

“This is not a revenue problem,” said David Crane, president of Govern for California, a nonprofit that seeks to oppose the influence of labor unions on state government. “The deficit is a result of expenditures.”

In April, Newsom touted the fact that the California economy held its position as the fifth largest in the world, saying the state “continues to punch above its weight.”

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The state government’s financial problem can be blamed, in part, on poor revenue projections that led Newsom and lawmakers to allocate more money for programs than they had available to spend.

The state’s progressive tax structure leaves government dependent on revenue from income taxes paid by chief executives and other top Golden State earners, which are subject to stock market fluctuations and difficult to predict. The delay of the 2022 tax filing deadline, from April to November, also forced California leaders to craft the current budget without having a full understanding of how much state tax revenues had dropped.

Newsom anticipated California’s deficit to grow when he signed the budget last year and said he dedicated much of the new money in his spending plan to one-time funding increases that he could easily halt if revenue fell. The cuts include $500 million for a loan program to fund affordable student housing at colleges and a reduction of $485 million for work study programs for students.

Yet the governor and lawmakers have been criticized for choosing to pull money from the state’s rainy-day fund — $5.1 billion in 2024-25 and $7.1 billion planned the following year — to avoid deeper cuts. Democrats also plan to take $900 million from a safety net reserve account next year.

Tapping into the state’s piggy bank now has raised concerns about what could happen to state programs serving California’s neediest if the economy falls into recession and state revenues drop even lower.

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Democrats at the state Capitol released a broad overview of some of the cuts the Legislature will vote on next week before the budget takes effect on July 1.

Newsom and lawmakers said the agreement includes proposed legislation requiring the state, in the future, to set aside surplus funds for subsequent budget years as a means to protect against the revenue swings and a constitutional amendment in 2026 to grow the state’s rainy-day fund. Details were not shared with the announcement.

Here’s what we know so far about the agreement:

Pushing off a healthcare minimum wage hike

Newsom signed a bill into law last year to give healthcare workers a minimum-wage increase to $25 per hour. He waited a few weeks to explain that he wouldn’t allow the law to take effect if the state budget crisis worsened.

At the time, the Department of Finance estimated that the law could cost the state $2 billion. Labor unions said the cost was closer to $300 million, if the state required hospitals to cover much of the cost.

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Newsom’s concerns, which he said he shared with unions before he signed the law, set off months of private negotiations over when to raise wages and how to pay for the increase.

Those talks finally ended with the budget agreement, which delays the pay hike from taking effect until Oct. 15 at the earliest, instead of this month as originally planned.

The start date for the pay hike hinges on one of two scenarios: state revenues in the first quarter of the fiscal year coming in 3% above projections, or more federal funding for hospitals through a quality-assurance fee. If neither happens, the increase could be delayed beyond October.

Lawmakers and the governor are essentially using the quality-assurance fee as a mechanism to assure hospitals can pay for the increase. Hospitals pay quality-assurance fees, the federal government matches the money and then remits the funding back to hospitals.

The federal increase requested by the state is expected to cover 30% of the cost of the higher wages for hospitals.

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The budget pegs the state cost for the program at $600 million in 2024-25.

No solution on battle over MCO tax

The question of how to use the proceeds of a tax on managed care organizations, known as the MCO tax, turned out to be the most difficult to answer in budget negotiations. So challenging, in fact, that talks fizzled out and Newsom threatened to oppose a ballot measure backed by some of his closest allies.

The tax applies to health insurance providers that charge fixed monthly payments for services and acts as a mechanism to allow California to collect billions in additional federal funds for Medi-Cal, California’s healthcare system for low-income residents.

Newsom and lawmakers renewed the tax last June and agreed to use some of the proceeds to raise reimbursement rates to providers who serve Medi-Cal patients. For years, doctors have waged an unsuccessful campaign to raise rates, arguing that the reimbursements are too low, result in a shortage of doctors willing to accept patients and restrict access to care.

But Newsom reversed course and proposed taking more than $6 billion from the Medi-Cal rate increases over multiple years and using the funding instead to avoid cuts to the program.

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The change pitted Newsom against a coalition led by the California Medical Assn. and Planned Parenthood, two groups that have supported the governor’s causes and backed his campaigns.

The coalition called for the governor to stick to the agreement he made in 2023 to raise rates for providers. They also are leading a charge to pass a measure on the 2024 ballot that would permanently establish an MCO tax to fund higher reimbursement rates.

The governor wants the coalition to take the measure off the ballot. He wants the funds to be flexible so the state can use the money if necessary to support the Medi-Cal system in the future.

The coalition has so far declined to take the measure off the ballot, afraid Democrats would divert the funding again. The talks ended in a stalemate.

The final state budget includes $6.9 billion next year to support the Medi-Cal system.

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Newsom and lawmakers agreed to offer a smaller pot of money for “provider rate increases and investments” from the MCO tax, but far less money than was previously set aside. The budget includes $133 million in 2024-25 and a plan to raise that to $728 million in 2025-26 and $1.2 billion the following year.

Democrats said the MCO funding would become “inoperable,” essentially eliminated, if the measure is approved on the 2024 ballot.

The governor threatened to campaign against the measure as the talks soured, setting up the possibility that Newsom could challenge his supporters in the November election.

A pause on business tax breaks

The budget deal limits total tax credits for businesses in the state to $5 million per filer and pauses a net operating loss tax deduction for businesses with income of more than $1 million in 2024, 2025 and 2026.

In a concession to the business community, Newsom and lawmakers are allowing companies to receive refunds for the tax credits after the limits end.

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Newsom originally proposed halting and capping the tax breaks beginning in 2025. But Democrats in the Legislature pushed to apply the changes a year earlier, allowing them to avoid cuts to other programs.

The administration said the changes to the tax breaks will increase revenues by nearly $15 billion through 2026.

The early start could hurt businesses who were planning to deduct losses from their 2024 taxes and now have to scramble to scale back on employees or inventory to cover the cost of an unexpectedly higher bill. The limit also marks the second time in five years that the state has capped tax credits, which could turn away companies that operate in California.

Big cut to prisons

Lawmakers previously proposed an additional $1 billion in cuts to the Department of Corrections and Rehabilitation, which included at least $12 million in reductions to the governor’s project to transform San Quentin. Newsom’s proposed cuts had included $80.6 million in savings from the newly announced deactivation of 46 housing units at 13 state prisons.

The final agreement drops funding for corrections by $750 million total, including cuts to operations and savings from eliminating vacant jobs.

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Newsom supports another round of homelessness grants

In late May, Democrats in the Legislature proposed spending $1 billion more than the governor had budgeted on a sixth round of Homeless Housing, Assistance and Prevention grants to local governments to combat the homelessness crisis. At the same time, lawmakers proposed cutting $100 million in funding to clean up homeless encampments in the current budget year.

The final budget deal appears to show a compromise.

The deal includes $1 billion in additional homelessness grants, which the governor and lawmakers said would be tied to new accountability measures to make sure local governments use the funding appropriately. The agreement also provides $150 million next year for encampment grants.

Broadband internet access for all — a little later

The pandemic exposed the need to improve access to broadband internet in homes across California when K-12 education shifted from the classroom to remote learning. Low-income families and those who live in rural areas often lack the same connectivity as more wealthy communities.

Newsom has sought to make internet access more equitable under a “broadband for all” initiative.

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The spending plan delays $550 million in funding for “last mile” work, which connects the network to homes, until the 2027 budget year. The budget agreement still offers $250 million next year for a program to expand and improve the fiber-optic network under “middle-mile” projects, and Democrats intend to provide a total of $2 billion for last-mile work over multiple years.

A funding delay for public schools

Under Proposition 98, approved by voters in 1988, California has a minimum funding guarantee for schools and community colleges.

Earlier this year, Newsom proposed an unusual maneuver to go back and recharacterize funding in 2022-23 to reflect the lower-than-expected state revenue.

The California Teachers Assn. said the change would have ultimately reduced funding for schools by about $12 billion over two years. The union ran a television ad criticizing Newsom’s proposal to pressure him to reverse course.

Newsom and teachers ultimately agreed late last month to a complicated solution that suspends the minimum funding guarantee and delays $5.5 billion in funding until future years.

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Mojtaba Khamenei, son of former supreme leader, tipped to become Iran’s next head of state

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Mojtaba Khamenei, son of former supreme leader, tipped to become Iran’s next head of state

Mojtaba Khamenei, the second son of the assassinated Ali Khamenei, is being heavily tipped to succeed his father as supreme leader of Iran, which would pitch a hardliner into the task of steering the Islamic republic through the most turbulent period in its 48-year history and offer a powerful signal that, for now, it has no intention of changing course.

No official confirmation has been given and the announcement may be delayed until after the funeral of Ali Khamenei, which was on Wednesday postponed.

His son is believed to have been the choice of the Islamic Revolutionary Guard Corps (IRGC), and the Israeli defence minister, Gideon Saar, has warned he will be assassinated.

Ayatollah Seyed Khatani, a member of the Assembly of Experts, the body that chooses the new supreme leader, said the assembly was close to selecting a leader.

Rigid in his anti-western views, Mojtaba Khamenei is not the candidate Donald Trump would have wanted. Marco Rubio, the US secretary of state, said on Tuesday that Iran was run by “religious fanatic lunatics” – and Khamenei’s appointment is hardly likely to dispel that opinion.

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‘They were going to attack first’: Trump gives update on Iran – video

The choice of supreme leader is made by the 88-strong Assembly of Experts, who in this case are picking from a field of six possible candidates. His election would be a powerful if unsurprising symbol that the government is not looking to find an accommodation with America.

Trump has said the worst-case scenario would be if Khamenei’s successor was “as bad as the previous person”.

There has been speculation for more than a decade that he would be his father’s successor, which grew when Ebrahim Raisi, the elected president and favourite of Khamenei, was killed in a helicopter crash.

Mojtaba Khamenei was born in 1969 and studied theology after graduating from high school. At the age of 17, he went to serve in the Iran-Iraq war, but it was not until the late 1990s that he came to be recognised as a public figure in his own right.

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After the landslide defeat of Khamenei’s preferred candidate, Ali Akbar Nategh Nuri, in the 1997 presidential election, where he won only 25% of the final vote, various conservative Iranian groups realised the need to make changes to their structures and Mojtaba Khamenei was central to that project.

He was also seen as instrumental by reformists in suppressing the protests in 2009 that came after allegations the presidential election had been rigged, with his name chanted in the streets as one of those responsible. Mostafa Tajzadeh, a senior member of Iran’s reformist parties who was imprisoned after the vote, alleged that his and his wife, Fakhr al-Sadat Mohtashamipour’s, legal case was under the direct supervision of Mojtaba Khamenei.

In 2022 he was given the title of ayatollah – essential to his promotion. By then he was a regular figure by his father’s side at political meetings, as well as playing an influential role in the Islamic Republic’s Broadcasting Corporation, the government’s official media outlet often criticised for churning out dull political propaganda that many Iranians reject in favour of overseas satellite channels. He has also played a central role in the administration of his father’s substantial financial empire.

His closest political allies are Ahmad Vahidi, the newly appointed IRGC commander; Hossein Taeb, a former head of the IRGC’s intelligence organisation; and Mohammad Bagher Ghalibaf, the current speaker of the parliament.

His rumoured appointment and its hereditary nature has long been resisted by reformists. The former prime minister Mir Hossein Mousavi, referring to the long history of rumours about Mojtaba Khamenei succeeding his father as leader, wrote in 2022: “News of this conspiracy have been heard for 13 years. If they are not truly pursuing it, why don’t they deny such an intention once and for all?”

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The Assembly of Experts, in response, denounced “meaninglessness of doubts” and said the assembly would select only “the most qualified and the most suitable”.

Israel on Tuesday struck the building in the Iranian city of Qom, one of Shia Islam’s main seats of power, where the assembly was scheduled, but the building was empty, according to IRGC-affiliated media.

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Video: Senators Question Kristi Noem on ICE Immigration Tactics

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Video: Senators Question Kristi Noem on ICE Immigration Tactics

new video loaded: Senators Question Kristi Noem on ICE Immigration Tactics

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Senators Question Kristi Noem on ICE Immigration Tactics

Homeland Security Secretary Kristi Noem repeatedly refused to apologize for suggesting that Alex Pretti and Renee Good, two U.S. citizens shot and killed by agents, were domestic terrorists.

What we’ve seen is a disaster under your leadership, Ms. Noem. A disaster. What we’ve seen is innocent people getting detained that turn out are American citizens. I could talk about the culture that’s been created here. After the killings of Renee Good and Alex Pretti, when I spoke to Alex’s parents, they told me that you calling him a domestic terrorist — this was directly from them — the day after he was killed, a nurse in our V.A., Alex — one of the most hurtful things they could ever imagine was said by you about their son. Do you have anything you want to say to Alex Pretti’s parents? Ma’am, I did not call him a domestic terrorist. I said It appeared to be an incident of — I think the parents saw it for what it was. In a hearing — recent hearing before the HSGAC committee, C.B.P. and ICE officials testified under oath that their agencies did not inform you that Pretti was a domestic terrorist — during that hearing, stated during that hearing, I was getting reports from the ground, from agents at the scene, and I would say that it was a chaotic scene. How did you think that calling them domestic terrorists at that scene was somehow going to calm the situation? The fact that you can’t admit to a mistake, which looks like under investigation, it’s going to prove that Ms. Good and Mr. Pretti probably should not have been shot in the face and in the back. Law enforcement needs to learn from that. You don’t protect them by not looking after the facts.

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Homeland Security Secretary Kristi Noem repeatedly refused to apologize for suggesting that Alex Pretti and Renee Good, two U.S. citizens shot and killed by agents, were domestic terrorists.

By Christina Kelso and Jackeline Luna

March 3, 2026

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Pregnant migrant girls are being sent to a Texas shelter flagged as medically risky

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Pregnant migrant girls are being sent to a Texas shelter flagged as medically risky

The Trump administration is sending pregnant unaccompanied minors to a South Texas shelter (above) flagged as medically inadequate by officials from the Office of Refugee Resettlement. The facility is run by a for-profit contractor called Urban Strategies.

Patricia Lim/KUT News


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Patricia Lim/KUT News

The Trump administration is sending all pregnant unaccompanied minors apprehended by immigration enforcement to a single group shelter in South Texas. The decision was made over urgent objections from some of the administration’s own health and child welfare officials, who say both the facility and the region lack the specialized care the girls need.

That’s according to seven officials who work at the Office of Refugee Resettlement within the U.S. Department of Health and Human Services, which takes custody of children who cross the border without a parent or legal guardian, or are separated from family by immigration authorities. The children remain in ORR’s care until they can be released to an adult or deported, or turn 18.

All of the officials asked not to be named for fear of retaliation.

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Since late July, more than a dozen pregnant minors have been placed at the Texas facility, which is in the small border city of San Benito. Some were as young as 13, and at least half of those taken in so far became pregnant as a result of rape, the officials said. Their pregnancies are considered high risk by definition, particularly for the youngest girls.

“This group of kids is clearly recognized as our most vulnerable,” one of the officials said. Rank-and-file staff, the official said, are “losing sleep over it, wondering if kids are going to be placed in programs where they’re not going to have access to the care they need.”

The move marks a sharp departure from longstanding federal practice, which placed pregnant, unaccompanied migrant children in ORR shelters or foster homes around the country that are equipped to handle high-risk pregnancies.

The ORR officials said they were never told why the girls are being concentrated in a single location, let alone in this particular shelter in Texas. But they — along with more than a dozen former government officials, health care professionals, migrant advocates and civil rights attorneys — worry the Trump administration is knowingly putting the children at risk to advance an ideological goal: denying them access to abortion by placing them in a state where it’s virtually banned.

“This is 100% and exclusively about abortion,” said Jonathan White, a longtime federal health official who ran ORR’s unaccompanied children program for part of President Trump’s first term. White, who recently retired from the government, said the administration tried and failed to restrict abortion access for unaccompanied minors in 2017. “Now they casually roll out what they brutally fought to accomplish last time and didn’t.”

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Asked if the administration is sending pregnant children to San Benito to restrict their access to abortion, HHS said in a statement that the allegation was “completely inaccurate.”

In an earlier statement, the department said that “ORR’s placement decisions are guided by child welfare best practices and are designed to ensure each child is housed in the safest, most developmentally appropriate setting, including for children who are pregnant or parenting.”

But several of the ORR officials took issue with the department’s statement. “ORR is supposed to be a child welfare organization,” one of them said. “Putting pregnant kids in San Benito is not a decision you make when you care about children’s safety.”

ORR’s acting director, Angie Salazar, instructed agency staff to send “any pregnant children” to San Benito beginning July 22, 2025, according to an internal email obtained as part of a six-month investigation by The California Newsroom and The Texas Newsroom, public media collaboratives that worked together to produce this story.

A copy of the July 22, 2025, email notifying ORR supervisors of the directive to send pregnant unaccompanied minors to a single shelter in San Benito, Texas. The move comes over objections from the government’s own health and child welfare officials.

A copy of the July 22, 2025, email notifying ORR supervisors of the directive to send pregnant unaccompanied minors to a single shelter in San Benito, Texas. The move comes over objections from the government’s own health and child welfare officials.
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Several of the officials said a handful of pregnant girls have mistakenly been placed in other shelters because immigration authorities didn’t know they were pregnant when they were transferred to ORR custody.

Since the July order, none of the pregnant girls at the San Benito facility have experienced major medical problems, according to the ORR officials and Aimee Korolev, deputy director of ProBAR, an organization that provides legal services to children there. They said several of the girls have given birth and are detained with their infants.

But ORR officials interviewed for this story said they worry the shelter is only one high-risk pregnancy away from catastrophe.

“I feel like we’re just waiting for something terrible to happen,” one of the officials said.

‘Blown away by the level of risk’

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There are dozens of ORR shelters or foster homes across the country that are designated to care for pregnant unaccompanied children, according to several of the ORR officials, with 12 in Texas alone. None of them could recall a time when all of the pregnant minors in the agency’s custody were concentrated in one shelter.

Detaining them in San Benito, Texas, doctors and public health experts said, is a dangerous gambit.

“It’s not good to be a pregnant person in Texas, no matter who you are,” said Annie Leone, a nurse midwife who recently spent five years caring for pregnant and postpartum migrant women and girls at a large family shelter not far from San Benito. “So, to put pregnant migrant kids in Texas, and then in one of the worst health care regions of Texas, is not good at all.”

The specialized obstetric care that exists in Texas is mostly available in its larger cities, hours from San Benito. And several factors, including the high number of uninsured patients, have eroded the availability of health care across the state.

Furthermore, Texas’ near-ban on abortion has been especially devastating to obstetric care. The law allows an exception in cases where the pregnant person’s life is in danger or one of her bodily functions is at risk, but doctors have been confused as to what that means.

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Many doctors have left to practice elsewhere, and those who’ve stayed are often scared to perform procedures they worry could come with criminal charges. While Texas passed a law clarifying the exceptions last year, experts have said it may not be enough to assuage doctors’ fears.

Several maternal health experts listed the potential dangers for the girls at the San Benito shelter: If one of them develops an ectopic pregnancy (where the fertilized egg implants outside the uterus), if she miscarries or if her water breaks too early and she gets an infection, the emergency care she needs could be delayed or denied by doctors wary of the abortion ban.

Getting the care that is available could take too long to save her life or the baby’s, they added.

Adolescents are also more likely to give birth early, which can be life-threatening for both mother and baby. The youngest face complications during labor and delivery because their pelvises aren’t fully developed, said Dr. Anne-Marie Amies Oelschlager, an obstetrician in Washington state who specializes in adolescent pregnancy.

“These are young adolescents who are still going through puberty,” she said. “Their bodies are still changing.”

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Pregnant girls who recently endured the often harrowing journey to the U.S. face even more risk, obstetrics experts said. Experts who work with migrant children say many are raped along the way and contract sexually transmitted infections that can be dangerous during pregnancy. Add to that little to no access to prenatal care or proper nourishment, and then the trauma of being detained.

“You couldn’t set up a worse scenario,” said Dr. Blair Cushing, who runs a women’s health clinic in McAllen, about 45 minutes from San Benito. “I’m kind of blown away by the level of risk that they’re concentrating in this facility.”

A history of problems

The San Benito shelter is owned and operated by Urban Strategies, a for-profit company that has contracted with the federal government to care for unaccompanied children for more than a decade, according to USAspending.gov.

Meliza Fonseca lives across the street from the San Benito shelter. She said she occasionally sees kids in the yard on weekends, “but for the most part, you don’t see them.”

Meliza Fonseca lives across the street from the San Benito shelter. She said she occasionally sees kids in the yard on weekends, “but for the most part, you don’t see them.”

Patricia Lim/KUT

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The main building, an old tan brick Baptist Church, occupies a city block in downtown San Benito, a quiet town of about 25,000. The church was converted to a migrant shelter in 2015 and was managed by two other contractors before Urban Strategies took it over in 2021.

On a fall day last year, there were no signs of activity at the facility, though children’s lawn toys and playground equipment were visible behind a wooden fence. A guard was stationed at one of the entrances.

“It’s pretty quiet, just like it is today,” said Meliza Fonseca, who lives nearby. “That’s the way it is every day.”

She said she occasionally sees kids playing in the yard on weekends, “but for the most part, you don’t see them.”

Reached by email, the founder and president of Urban Strategies, Lisa Cummins, wrote that the company is “deeply committed to the care and well-being of the children we serve,” and directed any questions about ORR-contracted shelters to the federal government.

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When asked about the San Benito facility, HHS wrote that “Urban Strategies has a long-standing record of delivering high-quality care to pregnant unaccompanied minors, with a consistently low staff turnover.”

But the ORR officials who spoke with the newsrooms said that as recently as 2024, staff members at the shelter failed to arrange timely medical appointments for pregnant girls or immediately share critical health information with the federal agency and discharged some of them without arrangements to continue their medical care.

ORR barred the shelter from receiving pregnant girls from September to December of 2024 while Urban Strategies implemented a remediation plan, but the plan did not add staff or enhance their qualifications, the officials said.

Some of the officials said ORR’s leadership was provided with a list of shelters that are better prepared to handle children with high-risk pregnancies. All of those shelters are outside Texas, in regions where the full range of necessary medical care is available. Yet the directive to place them at San Benito remains in place.

“It’s cruel, it’s just cruel,” one of the officials said. “They don’t care about any of these kids. They’re playing politics with children’s health.”

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‘A dress rehearsal’

Jonathan White, who ran ORR’s unaccompanied children program from January of 2017 to March of 2018, said he wasn’t surprised to learn that the new administration is moving pregnant unaccompanied children to Texas.

“I’ve been expecting this since Trump returned to office,” White said in an interview.

He said he views the San Benito order as a continuation of an anti-abortion policy shift that began in 2017, which “ultimately proved to be a dress rehearsal for the current administration.”

Scott Lloyd, the agency’s director at the time, denied girls in ORR custody permission to end their pregnancies, court records show. Lloyd also required the girls to get counseling about the benefits of motherhood and the harms of abortion and personally pleaded with some of them to reconsider.

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“I worked to treat all of the children in ORR care with dignity, including the unborn children,” Lloyd told the newsrooms in an email.

In the fall of 2017, the American Civil Liberties Union filed a class action lawsuit against Lloyd and the Trump administration on behalf of pregnant girls in ORR custody. The ACLU argued that denying the girls abortions violated their constitutional rights, established by the Supreme Court in its 1973 Roe v. Wade decision.

Not long after the lawsuit was filed, White said, he received a late-night phone call from Lloyd, who had a request. He wanted White to transfer an unaccompanied pregnant girl who was seeking an abortion to a migrant shelter in Texas, where, under state law, it would have been too late for her to terminate her pregnancy. White said that he believed following the order would have been unlawful because it might have denied the girl access to legal relief under the lawsuit, so he refused. The girl was not transferred.

Lloyd, who has since left the government, acknowledged making the request but said he didn’t think it was illegal.

The lawsuit was settled in 2020; the first Trump administration agreed not to impede abortion access for migrant youth in federal custody going forward. Four years later, the Biden administration cemented the deal in official regulations: If a child who wanted to terminate her pregnancy was detained in a state where it was not legal, ORR had to move them to a state where it was.

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That rule remains in place, and the agency appears to be following it: ORR has transferred two pregnant girls out of Texas since July, though the agency officials said one of the girls chose not to terminate her pregnancy.

But now that Trump is back in office, his administration is working to end the policy.

‘Elegant and simple’

Even before Trump won reelection, policymakers in his circle were planning a renewed attempt to restrict abortion rights for unaccompanied minors.

Project 2025, the Heritage Foundation’s blueprint for a politically conservative overhaul of the federal government, called for ORR to stop facilitating abortions for children in its care. The plan advised the government not to detain unaccompanied children in states where abortion is available.

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Such a change is now possible, Project 2025 argued, because Roe v. Wade is no longer an obstacle. Since the Supreme Court overturned the landmark decision in 2022, there is no longer a federal right to abortion.

Upon returning to office, Trump signed an executive order “to end the forced use of Federal taxpayer dollars to fund or promote elective abortion.”

Then, in early July, the Department of Justice reconsidered a longstanding federal law, known as the Hyde Amendment, that governs the use of taxpayer money for abortion. The DOJ concluded that the government cannot pay to transport detainees from one state to another to facilitate abortion access, except in cases of rape or incest or to save the life of the mother.

And now, ORR is working to rescind the Biden-era requirement that pregnant girls requesting an abortion be moved to states where it’s available. On Jan. 23, the agency submitted the proposed change for government approval, though it has not yet published the details.

Several of the ORR officials who spoke with the newsrooms said it’s unclear whether children in the agency’s custody who have been raped or need emergency medical care will still be allowed to get abortions.

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“HHS does not comment on pending or pre-decisional rulemaking,” the department wrote when asked for details of the regulatory change. “ORR will continue to comply with all applicable federal laws, including requirements for providing necessary medical care to children in ORR custody.”

The day the change was submitted, an unnamed Health and Human Services spokesperson told The Daily Signal, a conservative news site, “Our goal is to save lives both for these young children that are coming across the border, that are pregnant, and to save the lives of their unborn babies.”

Experts who spoke with the newsrooms said it’s unclear why the government would concentrate pregnant children in one Texas shelter, rather than disperse them at shelters throughout the state. But they said they’re convinced that the San Benito directive and the anti-abortion rule change are meant to work hand in hand: Once pregnant children are placed at the San Benito shelter, the new regulations could mean they cannot be moved out of Texas to get abortions — even if keeping them there puts them at risk.

“It’s so elegant and simple,” said White, the former head of the unaccompanied children program. “All they have to do is send them to Texas.”

Mark Betancourt is a freelance journalist and regular contributor to The California Newsroom.

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Mose Buchele with The Texas Newsroom contributed reporting.

This story was produced by The California Newsroom and The Texas Newsroom. The California Newsroom is a collaboration of public media outlets that includes NPR, CalMatters, KQED (San Francisco), LAist and KCRW (Los Angeles), KPBS (San Diego) and other stations across the state. The Texas Newsroom is a public radio journalism collaboration that includes NPR, KERA (North Texas), Houston Public Media, KUT (Austin), Texas Public Radio (San Antonio) and other stations across the state.

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