Politics
California Supreme Court to rule on high-stakes battle over ballot measure restricting tax increases
The battle between business and labor is headed for a high-stakes showdown at the California Supreme Court this week over a ballot measure that would tip the balance of power at the state Capitol.
The court on Wednesday will hear oral arguments on the legality of an initiative backed by business interests that strips the state Legislature and the governor of the ability to increase taxes and requires statewide voter approval.
In an effort to quash the measure, Gov. Gavin Newsom and legislative Democrats petitioned the Supreme Court last September to intervene. They argued that change revises the California Constitution and, therefore, can only be placed on the ballot if ratified during a Constitutional Convention or by winning a two-thirds vote in the Legislature.
The proposal has alarmed Democrats, unions and their liberal allies. The measure could limit state and local funding, hamstring the ability to generate new money for programs and make it more challenging for the governor and Legislature to offset a budget deficit in an economic crisis without slashing progressive policy priorities.
“They should be afraid because the people of California are fed up,” said Rob Lapsley, president of the California Business Roundtable, a proponent of the measure. “This gives the people of California the right to vote on future taxes, and voters are going to support it if it’s on the ballot.”
If approved by voters, the proposal would mark a historic win for the business community. Lapsley said establishing new checks and balances on taxation is essential to creating jobs and attracting companies to California.
Labor unions representing state workers, teachers, police and firefighters have joined forces with Democrats and dozens of other organizations to ask the high court to strike down the measure. They argue it would impair essential government functions and threaten services that rely on state dollars.
“I want to make it clear that the ‘Taxpayer Deception Act’ lets wealthy corporations, who can afford expensive campaigns, to block taxes on their industry while regular Californians, regular people, shoulder more of the cost of critical services,” said Tia Orr, executive director of Service Employees International Union California, which is leading the charge to defeat the measure on the ballot.
Officially dubbed the “Taxpayer Protection and Government Accountability Initiative,” the measure pushed by Lapsley’s group and the Howard Jarvis Taxpayers Assn. asks voters to require local governments to vote on all fee increases, which can now be approved administratively. The threshold to increase local special taxes would increase from a majority to a two-thirds vote of the people.
Fee increases at the state level, which are often approved by state agencies and boards, would need support from a majority of the state Legislature. The measure would expand the requirements necessary for a statewide tax increase, which currently can be done with a two-thirds vote of the Legislature. Under the ballot measure, support from a majority of California voters also would be required.
Taxes are often applied to the sale of goods, or income, for example, and pay for a variety of government expenses through the state general fund. A fee is typically collected and spent on a more specific service.
The measure expands the definition of taxes and restricts the potential use of fees to only cover the cost of the service, potentially prohibiting government from redirecting revenue to other purposes to close a budget deficit. The changes would take effect retroactively and reverse many local and state tax and fee increases approved since Jan. 1, 2022.
Carolyn Coleman, chief executive of the League of California Cities, said the new requirements for local ballot measures would effectively erase more than 100 measures that voters already approved with a majority vote. In Walnut Creek, for example, it would rescind a local public safety measure that voters approved with a 65% majority in 2022. The measure funded five new police officers, she said.
Opponents and supporters said that, if approved, the taxpayer ballot measure could rescind the “mansion tax,” also known as Measure ULA that took effect in Los Angeles last year. The measure applies a 4% charge on all property sales above $5 million and a 5.5% charge on sales above $10 million to fund housing and homelessness initiatives.
Lapsley argued that the mansion tax is “singularly the worst economic policy that you can possibly have in freezing the whole commercial, retail and residential real estate market in L.A.”
The luxury real estate market has slowed since the measure was adopted, but the charge has also raised about $215 million in funding in its first year.
Groups that have given money directly to Lapsley’s campaign, or funded other political action committees that contribute to the measure, include developers, landlords and real estate managers, among others with an interest in ending the mansion tax.
In addition to weighing whether the state ballot initiative constitutes a revision of the Constitution, the Supreme Court will consider the argument that it affects essential government functions.
Erin Mellon, a spokesperson for Newsom, said that in the event of a financial crisis the measure would require government to wait up to two years for the next ballot to raise taxes, “potentially putting lives and our economy at risk.”
“The governor is not a proponent of tax increases and has fought against propositions seeking to add new taxes, but the recession 15 years ago — and the current budget challenges facing our state — underscore the need for government to use every tool in the toolbox to respond to crises,” Mellon said in a statement. “The California Supreme Court should keep this radical effort led by wealthy business interests off the ballot because it violates the Constitution by attempting to completely restructure our system of government in a way that will prevent government from protecting Californians from future crises.”
The case elevates the ongoing fight between progressive labor unions and the business community from the halls of the state Capitol to California’s highest court.
Companies in California often complain that they can’t get a fair shake in a state Legislature dominated by Democrats and under the powerful political influence of labor unions. Business interests are increasingly turning to the statewide ballot to block and stall progressive laws from taking effect, or to push their own policy agenda directly to voters.
The proposed ballot measure could deal a blow to labor unions and other interest groups, who would find it more challenging and more expensive to convince voters to increase taxes to back their policy agenda than making their case just to legislators. Requiring lawmakers to pass bills to increase every new fee could also become a political challenge.
Lapsley and others said it’s rare for the Supreme Court to take up this type of pre-election challenge to a ballot measure. He said he feels that it’s fair for the court to consider the arguments, but he criticized Democrats for bringing the case.
“The fact that the Legislature and the governor are using taxpayer money to try and deny the voters of California, over 1.43 million who signed our petitions, the opportunity to have their voice heard is a direct violation of everything they talk about in terms of direct democracy,” Lapsley said. “They’re complete hypocrites when it comes to this case.”
Each side has 30 minutes to present an oral argument to the Supreme Court on Wednesday in San Francisco. The court is expected to release a ruling sometime before the June 27 deadline for measures to qualify for the ballot.
Politics
Video: President Fires Noem as Homeland Security Secretary
new video loaded: President Fires Noem as Homeland Security Secretary
transcript
transcript
President Fires Noem as Homeland Security Secretary
President Trump fired Kristi Noem, his embattled homeland security secretary, on Thursday and announced his plans to replace her with Senator Markwayne Mullin of Oklahoma.
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“The fact that you can’t admit to a mistake which looks like under investigation is 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.” “Our greatness calls people to us for a chance to prosper, to live how they choose, to become part of something special. Anyone who searches for freedom can always find a home here. But that freedom is a precious thing, and we defend it vigorously. You crossed the border illegally — we’ll find you. Break our laws — we’ll punish you.” “Did you bid out those service contracts?” “Yes they did. They went out to a competitive bid.” “I’m asking you — sorry to interrupt — but the president approved ahead of time you spending $220 million running TV ads across the country in which you are featured prominently?” “Yes, sir. We went through the legal processes. Did it correctly —” Did the president know you were going to do this?” “Yes.” “I’m more excited about just ready to get started. There’s a lot of work we can do to get the Department of Homeland Security working for the American people.”
By Jackeline Luna
March 5, 2026
Politics
DOJ continues Biden autopen probe despite former president unlikely to face charges
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The Department of Justice (DOJ) is continuing its investigation into former President Joe Biden’s use of an autopen in the final months of his administration — focusing on pardons and commutations — though a senior official said Biden is unlikely to face criminal exposure.
A senior DOJ official told Fox News the autopen investigation is ongoing and not closed, adding investigators are reviewing clemency actions taken in the final months of the Biden administration.
The official also pointed out, however, that the use of an autopen by a sitting president is “established law.”
The issue under review is whether the autopen was used in violation of the law, specifically, whether Biden personally approved each name included on pardon and commutation lists.
A framed portrait shows former President Joe Biden’s signature and an autopen along “The Presidential Walk of Fame” outside the Oval Office of the White House. (Andrew Harnick/Getty Images)
“These types of cases are tough. Executive privilege issues come into play,” the official said.
What is also clear, the official indicated, is that the target of any potential prosecution would not likely be Biden.
“It’s hard to imagine how [Biden] could be criminally liable for pardon power,” the senior DOJ official said.
BIDEN’S AUTOPEN PARDONS DISTURBED DOJ BRASS, DOCS SHOW, RAISING QUESTIONS WHETHER THEY ARE LEGALLY BINDING
The use of the autopen by former President Joe Biden remains under investigation. (AP Photo)
The official noted that one reason the former president would be unlikely to face charges stems from a 2024 Supreme Court ruling that originally involved current President Donald Trump but would also apply to Biden.
“We conclude that under our constitutional structure of separated powers, the nature of Presidential power requires that a former President have some immunity from criminal prosecution for official acts during his tenure in office,” the Supreme Court ruled in Trump v. United States in 2024.
“At least with respect to the President’s exercise of his core constitutional powers, this immunity must be absolute.”
Sources familiar with the matter told Fox News Digital that U.S. Attorney Jeanine Pirro’s team continues to review the Biden White House’s reliance on an autopen, contradicting a recent New York Times report that indicated the investigation had been paused.
DOJ SIGNALS IT’S STILL DIGGING INTO BIDEN AUTOPEN USE DESPITE REPORTS PROBE FIZZLED
President Donald Trump has pushed for consequences for former President Joe Biden’s alleged use of the autopen. (Julia Demaree Nikhinson/AP Photo)
Trump has pushed for consequences over the autopen controversy, alleging on social media that aides acted unlawfully in its use and raising the prospect of perjury charges against Biden.
Biden has rejected those claims, saying in a statement last year he personally directed the decisions in question.
“Let me be clear: I made the decisions during my presidency,” Biden said. “I made the decisions about the pardons, executive orders, legislation and proclamations. Any suggestion that I didn’t is ridiculous and false.”
The House Oversight Committee has homed in on Biden’s clemency actions, including five controversial pardons for family members in the final days of his presidency, citing what it described as a lack of “contemporaneous documentation” confirming that Biden directly ordered the pardons.
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The committee asked the DOJ to investigate “all of former President Biden’s executive actions, particularly clemency actions, to assess whether legal action must be taken to void any action that the former president did not, in fact, take himself.”
Fox News Digital’s Ashley Oliver contributed to this report.
Politics
Anxiety grows among California Democrats as gubernatorial candidates rebuff calls to drop out
SACRAMENTO — Despite a plea from the head of the California Democratic Party for underperforming candidates to drop out of the governor’s race, all but one of the party’s top hopefuls spurned the request.
Party leaders fear the growing possibility that the crowded field will split the Democratic electorate in the state’s June top-two primary election and result in two Republicans advancing to the November ballot, ensuring a Republican governor being elected for the first time since 2006.
His advice largely unheeded, state party Chairman Rusty Hicks on Thursday said the fate of a Democratic victory now rests squarely on the gubernatorial candidates who flouted him.
“The candidates for Governor now have a chance to showcase a viable path to win,” Hicks said in a statement Thursday.
Eight top Democratic candidates filed the official paperwork to appear on the June ballot after Hicks released a letter on Tuesday urging those “who cannot show meaningful progress towards winning” to drop out. Friday is the deadline to file to appear on the primary election ballot. On March 21, the secretary of state’s office will formally announce who will appear on the June ballot.
“It sounded like someone who has his head in the sand,” former Los Angeles Mayor Antonio Villaraigosa said of Hicks’ open letter. “[Most] of us filed within 24 hours of getting that letter. It created some press but not much else. It didn’t impact [most] of the candidates and it certainly didn’t impact my candidacy.”
Democratic strategist Elizabeth Ashford said it was appropriate for Hicks and other Democratic leaders to make a public plea as opposed to keeping such discussions solely behind closed doors.
But the response showed the limited power of the modern-day party bosses.
“It’s definitely not Tammany Hall,” said Ashford, referring to the storied Democratic political machine that had a grip on New York City politics for nearly a century. “The party and Rusty are influential and they are helpful and that is their role. I don’t think anyone would be comfortable with outright public strong-arming of specific candidates.”
Ashford, who worked for former Govs. Jerry Brown and Arnold Schwarzenegger, along with former Vice President Kamala Harris when she served as state attorney general, added that the minimal power of the state GOP is likely a factor in the dynamics of Democrats’ decision to stay in the race. Democratic registered voters outnumber Republicans by almost a 2-to-1 margin in the state, and Democrats control every statewide elected office and hold supermajorities in both chambers of the California Legislature.
“If there were a strong viable opposition that existed, if the Republican Party was actually relevant in California, I think that would sort of force greater unity amongst Democrats,” she said.
Just one of the nine major Democrats did heed the party chair’s message. Ian Calderon, a former Los Angeles-area Assemblyman who consistently polled near the bottom of the field, withdrew from the race and endorsed Rep. Eric Swalwell (D-Dublin) on Thursday.
Candidates cannot withdraw their name from the ballot once they officially file to run for office, leading to some fears that even if other candidates drop out of the race, a crowded primary ballot could still split California’s liberal votes.
“I’m disappointed most of them will be on the ballot,” said Lorena Gonzalez, the head of the California Federation of Labor Unions, which will announce whether it endorses in the governor’s race on March 16. But “I do still think you can have people drop out of the race or become viable. I think that there are candidates who know viability is a real thing they have to show in coming weeks” before ballots start being mailed to voters.
Jodi Hicks, chief executive and president of Planned Parenthood Affiliates of California, said she is “still worried” about the prospect of two Republicans winning the top two spots in the June primary, shutting Democrats out of any chance of winning the governor’s office in November.
“I didn’t have any specifics of who I wanted to do what,” she said. “I’m just very, very concerned and the stakes are really high right now and seem to be getting worse by the day.”
Republican candidate Steve Hilton, a former Fox News host, said he is “confident that I’ll be in the top two” along with a Democratic candidate. “I find it very difficult to believe that the Democratic Party will just surrender California and allow two Republicans to be in the top two.”
Hilton made the comments Thursday after a gubernatorial forum in Sacramento hosted by the California Assn. of Realtors focused on housing and homeownership. Villaraigosa, former Health and Human Services Secretary Xavier Becerra, San Jose Mayor Matt Mahan and former Rep. Katie Porter also attended. Swalwell, who is currently in Washington, joined the panel virtually.
During the panel, candidates were in broad agreement about the need to reduce barriers and costs in order to build more housing in California, where the median single-family home costs more than $820,000. Many also endorsed proposals to disincentivize private investment firms from buying up homes as well as a $25-billion bond proposed by former Sen. Bob Hertzberg to help first-time homebuyers afford a down payment.
“This really isn’t a debate because we’re agreeing so much with each other,” Hilton said at one point during the event.
That political alignment on one of the most pressing issues facing California may explain why voters are having such a difficult time deciding who to support.
A recent poll of the Public Policy Institute of California found that the five candidates topping the crowded field were within 4 percentage points of one another: Porter, Swalwell, Hilton, Democratic hedge fund founder Tom Steyer and Republican Riverside County Sheriff Chad Bianco. Earlier polls had Hilton and Bianco leading the field, though many voters remained undecided.
Some candidates took issue with Hicks’ push to cull the field, noting that most of the lower-polling candidates he asked to drop out are people of color.
“Our political system is rigged, corrupted by the political elites, the wealthy and well connected,” state Supt. of Public Instruction Tony Thurmond, who is Black and Latino, said in a video posted on social media in response to the open letter. “The California Democratic Party is essentially telling every person of color in the race for Governor to drop out.”
Villaraigosa argued that enough voters remain undecided that it was too early for quality candidates to call it quits.
“Most people don’t even know who’s in the race,” said Villaraigosa. “It’s premature to be thinking about getting out of the race. I certainly am not considering it and I feel no pressure.”
Aside from the opinion polls, other indicators on who may emerge from the pack a candidates are slowly emerging.
Though it wasn’t enough to win the party’s endorsement, Swalwell won support from 24% of delegates at the state Democratic convention last month, the most of any party candidate.
While spending is no guarantee of success, Steyer has donated $47.4 million of his own wealth to his campaign. Mahan, who recently entered the race and is supported by Silicon Valley leaders, has quickly raised millions of dollars, as have two independent expenditures committees backing his bid.
Ashford said part of candidates’ decisions to remain in the race could have been driven by their lengthy political careers, as well as Democrats’ crushing November redistricting victory.
“In several cases, these are people who have won statewide office,” she said. “It’s tough to feel like there may not be a sequel to that.”
Nixon reported from Sacramento and Mehta from Los Angeles.
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