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Builders may fight 'impact fees' that fund municipal projects in California, Supreme Court rules

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Builders may fight 'impact fees' that fund municipal projects in California, Supreme Court rules

The Supreme Court ruled Friday that developers and home builders in California may challenge the fees commonly imposed by cities and counties to pay for new roads, schools, sewers and other public improvements.

The justices said these “impact fees” may be unconstitutional if builders and developers are forced to pay an unfair share of the cost of public projects.

Developers have contended that limiting California’s high fees would lead to the construction of more affordable new housing.

California state courts had blocked claims arising from “a development impact fee imposed pursuant to a legislatively authorized fee program” for new development in a city or county.

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But the 9-0 Supreme Court decision opened the door for such challenges. The justices revived a constitutional claim brought by an El Dorado County man who put a manufactured home on a small lot and was told he would have to pay a “traffic mitigation fee” of $23,420.

The decision could have wide impact in California, since local governments have increasingly relied on impact fees rather than property taxes to pay for new projects.

But the justices did not spell out when such fees become unfair and unconstitutional.

Liberal Justices Sonia Sotomayor and Ketanji Brown Jackson said they joined the majority opinion in Sheetz vs. El Dorado County because it merely allows such challenges.

In a separate opinion, conservative Justice Brett M. Kavanaugh said he saw merit to the “common government practice of imposing permit conditions, such as impact fees, on new development through reasonable formulas or schedules that assess the impact of classes of development rather than the impact of specific parcels of property.”

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State and county attorneys had made just that argument. They said it was fairer to impose a development fee on all the lots in an area.

But the justices nonetheless ruled that homeowners and developers may sue to challenge these fees as an unconstitutional taking of their private property. The case will now go back to the California courts.

The Pacific Legal Foundation in Sacramento hailed the ruling as a significant victory for property rights.

“Holding building permits hostage in exchange for excessive development fees is obviously extortion,” said attorney Paul Beard, who represented the El Dorado County homeowner. “We are thrilled that the court agreed and put a stop to a blatant attempt to skirt the 5th Amendment’s prohibition against taking private property without just compensation.”

Beard said El Dorado County “failed to show — and cannot show — that the fee is sufficiently related and proportionate to the traffic impacts” of his client’s “modest home.”

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The debate over development fees is especially relevant in California, where local governments have increasingly relied on the charges to finance parks, streets, schools and other infrastructure and services since the 1978 passage of Proposition 13 limited property tax revenues.

The fees have come under scrutiny in other cases as developers and others have blamed them for driving up the cost of housing and for a wide disparity in cities’ fees.

A 2018 study by UC Berkeley’s Terner Center for Housing Innovation found that, depending on the city, fees for new single-family homes could range from $21,000 to $157,000, and could account for 6% to 18% of the median home price.

For decades, the Supreme Court has cast a skeptical eye at California’s regulation of private property. In a pair of decisions, it limited the power of government officials to demand concessions from a property owner in exchange for a building permit.

In 1987, justices ruled for the owner of a beach bungalow in Ventura who was told he could not obtain a permit to expand his home unless he agreed to allow the public access to the beachfront. The conservative majority at the time described this demand as akin to “extortion” and said it violated the 5th Amendment’s clause that forbids the taking of “private property … for public use without just compensation.”

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In a follow-up decision involving a store owner who was forced to allow a bike path on her property, the court said the government may not impose such special conditions on property owners unless it can show an owner’s new development would cause direct harm to the community.

But since then, it has been unclear whether this property right applies to development fees or in situations where fees are set by legislation rather than imposed on a single owner seeking a permit.

Writing for the court in Friday’s ruling, conservative Justice Amy Coney Barrett said that “there is no basis for affording property rights less protection in the hands of legislators than administrators. The Takings Clause applies equally to both — which means that it prohibits legislatures and agencies alike from imposing unconstitutional conditions on land-use permits.”

The case arose when property owner George Sheetz sought a permit to put a manufactured home on a lot he owned in Placerville, outside Sacramento. El Dorado County required him to pay a “traffic impact mitigation” fee to obtain the permit. Some of the money was to go toward upgrades to Highway 50, which runs through the area, but most was to go toward new or expanded roads in the county.

Sheetz paid the fee and obtained his permit, then sued to challenge the fee as unconstitutional. He argued that the taxpayers of the county, not the new owner of a small home, should be required to pay for road building.

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The justices agreed to hear his appeal after he lost in the California courts.

State Sen. Scott Wiener (D-San Francisco), who has supported legislation to rein in developer fees, said he didn’t expect Friday’s decision by itself to have a significant effect on the debate in Sacramento because it only called out one extreme situation.

“Ultimately, the solution is the same today as it was yesterday,” Wiener said. “The California Legislature needs to put in place an actual structure for impact fees. Right now, it’s all over the map.”

Wiener said he sympathizes with local governments that turn to the fees because it’s easier than raising revenue through broad-based taxes — but he said some cities use sky-high fees to block housing development.

“There is something a little odd about effectively taxing new housing to pay for societal needs that should be paid generally by taxpayers — by the entire community,” he said.

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Graham Knaus, executive director of the California State Assn. of Counties, said in a statement Friday that the organization was still reviewing the ruling to understand its implications.

But he said that “limiting the ability to legislatively enact fees will negatively impact the ability of our 58 counties to protect the health and welfare of their communities and drastically limit the building of vital local infrastructure.”

“In many cases,” Knaus said, “these fees are the only tool available to pay for new infrastructure around certain development projects.”

Times staff writer Liam Dillon in Los Angeles contributed to this report.

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Trump admin sues Illinois Gov. Pritzker over laws shielding migrants from courthouse arrests

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Trump admin sues Illinois Gov. Pritzker over laws shielding migrants from courthouse arrests

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The U.S. Justice Department filed a lawsuit against Illinois Gov. JB Pritzker over new laws that aim to protect migrants from arrest at key locations, including courthouses, hospitals and day cares.

The lawsuit was filed on Monday, arguing that the new protective measures prohibiting immigration agents from detaining migrants going about daily business at specific locations are unconstitutional and “threaten the safety of federal officers,” the DOJ said in a statement.

The governor signed laws earlier this month that ban civil arrests at and around courthouses across the state. The measures also require hospitals, day care centers and public universities to have procedures in place for addressing civil immigration operations and protecting personal information.

The laws, which took effect immediately, also provide legal steps for people whose constitutional rights were violated during the federal immigration raids in the Chicago area, including $10,000 in damages for a person unlawfully arrested while attempting to attend a court proceeding.

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PRITZKER SIGNS BILL TO FURTHER SHIELD ILLEGAL IMMIGRANTS IN ILLINOIS FROM DEPORTATIONS

The Trump administration filed a lawsuit against Illinois Gov. JB Pritzker over new laws that aim to protect migrants from arrest at key locations. (Getty Images)

Pritzker, a Democrat, has led the fight against the Trump administration’s immigration crackdown in Illinois, particularly over the indiscriminate and sometimes violent nature in which they are detained.

But the governor’s office reaffirmed that he is not against arresting illegal migrants who commit violent crimes.

“However, the Trump administration’s masked agents are not targeting the ‘worst of the worst’ — they are harassing and detaining law-abiding U.S. citizens and Black and brown people at daycares, hospitals and courthouses,” spokesperson Jillian Kaehler said in a statement.

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Earlier this year, the federal government reversed a Biden administration policy prohibiting immigration arrests in sensitive locations such as hospitals, schools and churches.

The U.S. Immigration and Customs Enforcement’s “Operation Midway Blitz,” which began in September in the Chicago area but appears to have since largely wound down for now, led to more than 4,000 arrests. But data on people arrested from early September through mid-October showed only 15% had criminal records, with the vast majority of offenses being traffic violations, misdemeanors or nonviolent felonies.

Gov. JB Pritzker has led the fight against the Trump administration’s immigration crackdown in Illinois. (Kamil Krazaczynski/AFP via Getty Images)

Immigration and legal advocates have praised the new laws protecting migrants in Illinois, saying many immigrants were avoiding courthouses, hospitals and schools out of fear of arrest amid the president’s mass deportation agenda.

The laws are “a brave choice” in opposing ICE and U.S. Customs and Border Protection, according to Lawrence Benito, executive director of the Illinois Coalition for Immigrant and Refugee Rights.

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“Our collective resistance to ICE and CBP’s violent attacks on our communities goes beyond community-led rapid response — it includes legislative solutions as well,” he said.

The DOJ claims Pritzker and state Attorney General Kwame Raoul, also a Democrat, violated the U.S. Constitution’s Supremacy Clause, which establishes that federal law is the “supreme Law of the Land.”

ILLINOIS LAWMAKERS PASS BILL BANNING ICE IMMIGRATION ARRESTS NEAR COURTHOUSES

Border Patrol Commander Gregory Bovino leaves the Dirksen U.S. Courthouse in Chicago. (Brian Cassella/Chicago Tribune/Tribune News Service via Getty Images)

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Raoul and his staff are reviewing the DOJ’s complaint.

“This new law reflects our belief that no one is above the law, regardless of their position or authority,” Pritzker’s office said. “Unlike the Trump administration, Illinois is protecting constitutional rights in our state.”

The lawsuit is part of an initiative by U.S. Attorney General Pam Bondi to block state and local laws the DOJ argues impede federal immigration operations, as other states have also made efforts to protect migrants against federal raids at sensitive locations.

The Associated Press contributed to this report.

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Supreme Court rules against Trump, bars National Guard deployment in Chicago

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Supreme Court rules against Trump, bars National Guard deployment in Chicago

The Supreme Court ruled against President Trump on Tuesday and said he did not have legal authority to deploy the National Guard in Chicago to protect federal immigration agents.

Acting on a 6-3 vote, the justices denied Trump’s appeal and upheld orders from a federal district judge and the U.S. 7th Circuit Court of Appeals that said the president had exaggerated the threat and overstepped his authority.

The decision is a major defeat for Trump and his broad claim that he had the power to deploy militia troops in U.S. cities.

In an unsigned order, the court said the Militia Act allows the president to deploy the National Guard only if the regular U.S. armed forces were unable to quell violence.

The law dating to 1903 says the president may call up and deploy the National Guard if he faces the threat of an invasion or a rebellion or is “unable with the regular forces to execute the laws of the United States.”

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That phrase turned out to be crucial.

Trump’s lawyers assumed it referred to the police and federal agents. But after taking a close look, the justices concluded it referred to the regular U.S. military, not civilian law enforcement or the National Guard.

“To call the Guard into active federal service under the [Militia Act], the President must be ‘unable’ with the regular military ‘to execute the laws of the United States,’” the court said in Trump vs. Illinois.

That standard will rarely be met, the court added.

“Under the Posse Comitatus Act, the military is prohibited from execut[ing] the laws except in cases and under circumstances expressly authorized by the Constitution or Act of Congress,” the court said. “So before the President can federalize the Guard … he likely must have statutory or constitutional authority to execute the laws with the regular military and must be ‘unable’ with those forces to perform that function.

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“At this preliminary stage, the Government has failed to identify a source of authority that would allow the military to execute the laws in Illinois,” the court said.

Although the court was acting on an emergency appeal, its decision is a significant defeat for Trump and is not likely to be reversed on appeal. Often, the court issues one-sentence emergency orders. But in this case, the justices wrote a three-page opinion to spell out the law and limit the president’s authority.

Justice Amy Coney Barrett, who oversees appeals from Illinois, and Chief Justice John G. Roberts Jr. cast the deciding votes. Justice Brett M. Kavanaugh agreed with the outcome, but said he preferred a narrow and more limited ruling.

Conservative Justices Clarence Thomas, Samuel A. Alito Jr. and Neil M. Gorsuch dissented.

Alito, in dissent, said the “court fails to explain why the President’s inherent constitutional authority to protect federal officers and property is not sufficient to justify the use of National Guard members in the relevant area for precisely that purpose.”

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California Gov. Gavin Newsom and Atty. Gen. Rob Bonta filed a brief in the Chicago case that warned of the danger of the president using the military in American cities.

“Today, Americans can breathe a huge sigh of relief,” Bonta said Tuesday. “While this is not necessarily the end of the road, it is a significant, deeply gratifying step in the right direction. We plan to ask the lower courts to reach the same result in our cases — and we are hopeful they will do so quickly.”

The U.S. 9th Circuit Court of Appeals had allowed the deployments in Los Angeles and Portland, Ore., after ruling that judges must defer to the president.

But U.S. District Judge Charles Breyer ruled Dec. 10 that the federalized National Guard troops in Los Angeles must be returned to Newsom’s control.

Trump’s lawyers had not claimed in their appeal that the president had the authority to deploy the military for ordinary law enforcement in the city. Instead, they said the Guard troops would be deployed “to protect federal officers and federal property.”

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The two sides in the Chicago case, like in Portland, told dramatically different stories about the circumstances leading to Trump’s order.

Democratic officials in Illinois said small groups of protesters objected to the aggressive enforcement tactics used by federal immigration agents. They said police were able to contain the protests, clear the entrances and prevent violence.

By contrast, administration officials described repeated instances of disruption, confrontation and violence in Chicago. They said immigration agents were harassed and blocked from doing their jobs, and they needed the protection the National Guard could supply.

Trump Solicitor Gen. D. John Sauer said the president had the authority to deploy the Guard if agents could not enforce the immigration laws.

“Confronted with intolerable risks of harm to federal agents and coordinated, violent opposition to the enforcement of federal law,” Trump called up the National Guard “to defend federal personnel, property, and functions in the face of ongoing violence,” Sauer told the court in an emergency appeal filed in mid-October.

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Illinois state lawyers disputed the administration’s account.

“The evidence shows that federal facilities in Illinois remain open, the individuals who have violated the law by attacking federal authorities have been arrested, and enforcement of immigration law in Illinois has only increased in recent weeks,” state Solicitor Gen. Jane Elinor Notz said in response to the administration’s appeal.

The Constitution gives Congress the power “to provide for calling forth the militia to execute the laws of the union, suppress insurrections and repel invasions.”

But on Oct. 29, the justices asked both sides to explain what the law meant when it referred to the “regular forces.”

Until then, both sides had assumed it referred to federal agents and police, not the standing U.S. armed forces.

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A few days before, Georgetown law professor and former Justice Department lawyer Martin Lederman had filed a friend-of-the-court brief asserting that the “regular forces” cited in the 1903 law were the standing U.S. Army.

His brief prompted the court to ask both sides to explain their view of the disputed provision.

Trump’s lawyers stuck to their position. They said the law referred to the “civilian forces that regularly execute the laws,” not the standing army.

If those civilians cannot enforce the law, “there is a strong tradition in this country of favoring the use” of the National Guard, not the standing military, to quell domestic disturbances, they said.

State attorneys for Illinois said the “regular forces” are the “full-time, professional military.” And they said the president could not “even plausibly argue” that the U.S. Guard members were needed to enforce the law in Chicago.

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Video: Trump Announces Construction of New Warships

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Video: Trump Announces Construction of New Warships

new video loaded: Trump Announces Construction of New Warships

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Trump Announces Construction of New Warships

President Trump announced on Monday the construction of new warships for the U.S. Navy he called a “golden fleet.” Navy officials said the vessels would notionally have the ability to launch hypersonic and nuclear-armed cruise missiles.

We’re calling it the golden fleet, that we’re building for the United States Navy. As you know, we’re desperately in need of ships. Our ships are, some of them have gotten old and tired and obsolete, and we’re going to go the exact opposite direction. They’ll help maintain American military supremacy, revive the American shipbuilding industry, and inspire fear in America’s enemies all over the world. We want respect.

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President Trump announced on Monday the construction of new warships for the U.S. Navy he called a “golden fleet.” Navy officials said the vessels would notionally have the ability to launch hypersonic and nuclear-armed cruise missiles.

By Nailah Morgan

December 23, 2025

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