Politics
Despite revenue increase, Newsom plans to pull from California's rainy day reserves
Gov. Gavin Newsom touted higher than expected tax revenues and a “modest surplus” in an unconventional preview of his $322.2 billion spending proposal for the upcoming fiscal year, but his office said he still plans to pull money from the state’s rainy day reserves to pay for policy priorities.
The Democratic governor delivered a selective presentation of his initial 2025-26 budget at Cal State Stanislaus on Monday that largely praised the state’s economic position under his leadership and made it difficult to understand the full scope of his spending plan. Newsom said details would be forthcoming at the end of the week.
The early, yet incomplete look at his proposal shows that Newsom’s annual spending plan has grown by $24 billion compared to the current budget enacted in July. The governor announced a projection of an extra $16.5 billion in tax revenue above his administration’s prior estimates, which the Department of Finance said is spread over three years.
“The top lines include a balanced budget, no deficits,” Newsom said.
The proposal kicks off the annual six-month process in which the governor and lawmakers negotiate a final spending plan to be approved in late June. Newsom’s presentation at a college campus in the Central Valley town of Turlock was an unusual twist on the ritual, driven by Newsom’s decision to travel to Washington, D.C., later this week for the funeral of former President Carter.
Because he presented the budget a few days earlier than initially planned, Monday’s rollout did not include the detailed budget document that typically accompanies the governor’s presentation.
Newsom described his proposal as making “significant commitments to accountability, transparency and results” and “maintaining fiscal discipline in a time of deep uncertainty.”
Despite the revenue increase, the cost of providing Medi-Cal coverage to seniors and more undocumented immigrants, offering pre-kindergarten to all 4-year-olds, creating a new $420-million tax break for Hollywood film studios and funding other signature Newsom policies leaves California with a spending problem.
Newsom’s office said he plans to withdraw another $7.1 billion from California’s rainy day reserves in the upcoming budget year, after declaring a fiscal emergency last year to take out $5.1 billion to balance the current budget and another $900 million from a safety-net reserve.
The decision to dip into the state’s savings account was part of an agreement made last year with lawmakers to also delay programs, cut spending and rely on the occasional accounting gimmick to solve a $46.8 billion deficit. California leaders were forced to reconcile a $31.7 billion deficit the prior year.
Senate President Pro Tem Mike McGuire (D-Healdsburg) said those tough decisions put California in a better financial position today.
“We look forward to taking a close look at the governor’s full proposal later this week,” McGuire said in a statement. “The major work will happen in the months ahead, when we’ll get down to brass tacks and craft a responsible and balanced budget which will help make California more livable and affordable.”
Assemblymember Carl DeMaio, a Republican elected in November to represent inland San Diego County, called the governor’s proposal “negligent” before Newsom even delivered his presentation.
“Gavin Newsom is in over his head and hopes that no one notices — but no amount of Enron-style accounting will change the alarming reality that Gavin Newsom has created a fiscal crisis,” DeMaio said in a statement, calling on his fellow lawmakers to reject the governor’s proposal.
Analysts warn that the financial outlook will worsen in the future with the potential for even greater economic upheaval under the incoming Trump administration.
The California Legislative Analyst’s Office in November predicted a largely balanced budget in 2025-26 with a shortage of $2 billion, while anticipating a deficit of about $20 billion in 2026-27 and an even higher shortfall by 2028-29 of about $30 billion.
The LAO reported that the California economy has been in a gradual slowdown over the last two years, with about 25% more unemployed workers overall and declining trends in consumer spending.
Newsom did not offer a deficit projection for future years and said he will share more when he presents his revised budget proposal in May.
Corrin Rankin, vice chair of the California Republican Party, criticized the governor for not doing enough to help regular Californians.
“Handing out tax breaks to Hollywood and spending on AI is great for the state’s billionaires,” Rankin said in response to Newsom’s presentation. “However, the rest of us feel like we’re drowning in growing costs and our lives haven’t been improved.”
Assembly Speaker Robert Rivas (D-Hollister) agreed that the state needs to tackle cost-of-living issues.
“We also need to prepare for challenges ahead and must show restraint with spending,” Rivas said in a statement. “I am committed to working with the governor and my colleagues on a budget that protects essential services and makes life more affordable.”
The Newsom administration has said President-elect Trump’s plan for international tariffs, uncertainty around federal Medi-Cal funding and threats to withhold disaster funding increase the likelihood of even greater budget uncertainty in the years ahead.
“We really have to see what fire and fury comes from Trump in the next few weeks and really get a sense,” Newsom said.
The governor is expected to leave for the Carter funeral after he spends time with President Biden Tuesday in California to celebrate the new Chuckwalla National Monument near Joshua Tree and the Sáttítla National Monument near the Oregon border.
Joe Stephenshaw, director of the California Department of Finance, will formally present the budget to the Legislature and answer questions on Friday.
Newsom plans to leave the state Saturday for a vacation with his family.
Politics
Rubio sanctions Cuban groups with ties to US nonprofit network funded by communist donor Neville Roy Singham
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Secretary of State Marco Rubio put U.S. organizations on notice: they can no longer do business with a key Cuban organization that has spent over six decades – since the launch of Fidel Castro’s communist revolution in 1959 – cultivating relationships with U.S. activists and groups, many of them now funded by communist American tycoon Neville Roy Singham.
The sanctions target the Cuban Institute of Friendship with the Peoples, known by its Spanish acronym ICAP, an organization founded by Castro in 1960 to spread Marxist ideology and support for Cuba. Long ago, U.S. officials and intelligence assessments concluded ICAP is a key component of Cuba’s intelligence apparatus.
“For decades, Cuba has been the world capital for radical left-wing terrorism,” Rubio said. “The regime in Havana has recruited, trained and backed violent Marxist and third-worldist movements across our hemisphere and beyond.”
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Marco Rubio moves to put sanctions on a group that Fidel Castro established in 1960 to spread Cuba’s communist influence in the world. (Sven Creutzmann/Mambo Photography/Getty Images; Nathan Posner/Anadolu via Getty Images)
Earlier this year, ICAP worked with U.S. nonprofits, including the People’s Forum, Progressive International and CodePink, to organize a March “convoy” that included controversial Marxist streamer Hasan Piker landing in Cuba to support Cuba’s communist party.
The trip has since attracted federal scrutiny, with CodePink co-founder Medea Benjamin confirming she received questions from federal officials about the trip, investigating whether she violated sanctions.
Late last month, Fox News Digital published a three-part series, reporting that federal investigators are examining Cuba’s alleged malign foreign influence operation in the U.S., investigating a network of 145 groups with collective revenues of about $1 billion, promoting Cuba’s agenda and communist ideology.
“Today, we are targeting the network that enables and funds Cuba’s subversive and radical operations,” Rubio said.
The groups working closely with ICAP include the People’s Forum, CodePink, BreakThrough News and Tricontinental, funded by Singham, a Marxist tech tycoon living in Shanghai. As reported, Singham has pumped $285 million into nonprofits since 2017 that have built very close relationships with ICAP and the communist government of Cuba.
Singham is married to CodePink co-founder Jodie Evans.
INSIDE CUBA’S FOREIGN INFLUENCE CAMPAIGN: FROM THE VENCEREMOS BRIGADE OF THE 1960S TO SATURDAY IN A UNION HALL
ICAP is today led by Fernando González Llort, one of five former Cuban intelligence officers, known as the “Cuban Five,” convicted in the U.S. years ago on espionage-related charges and released after spending time in jail.
Critics say ICAP acts as a gateway for revolutionaries from around the world to get embedded in the propaganda, organizing tactics and strategic goals of the Communist Party of Cuba. ICAP has denied wrongdoing and says it’s a civil society organization.
ICAP was one of five entities that Rubio designated as off-limits under sanctions authorities established by President Donald Trump’s Cuba executive order. The sanctions also target Cuba’s Ministry of the Revolutionary Armed Forces (MINFAR), the Committees for the Defense of the Revolution (CDR), Minera La Victoria S.A. and the state-run tourism company Amistur Cuba S.A., which has arranged trips to Cuba with U.S. nonprofits in the Singham network.
Experts said the move signals that the Trump administration is focused not only on the Cuban government but also on U.S. institutions that U.S. officials believe help project Cuban influence internationally.
A declassified CIA report from the Cold War era, “Cuba: Castro’s Propaganda Apparatus and Foreign Policy,” described Cuba’s international propaganda and influence activities as a central component of Castro’s foreign policy strategy. The report named ICAP among organizations that act as important instruments for cultivating sympathetic political movements abroad and extending Cuban influence beyond the island.
DOJ, TREASURY INVESTIGATE NONPROFITS AND LEADERS ALLEGEDLY COORDINATING WITH CUBA IN INFLUENCE CAMPAIGN
One of the most notable examples was the Venceremos Brigade, a Cuba solidarity program established in 1969 that brought generations of American activists to the island through exchanges organized with Cuban authorities and institutions including ICAP.
The program became one of the most visible pipelines connecting American activists to the Cuban revolutionary government.
Today, the Venceremos Brigade operates as a fiscally-sponsored project of the People’s Forum.
Lawmakers and federal authorities are examining whether organizations funded by Singham have acted on behalf of foreign interests without properly registering and have helped amplify messaging favorable to the Chinese Communist Party and the Communist Party of Cuba.
Cuba’s President Miguel Diaz-Canel (C) listens to Progressive International’s general coordinator, David Adler, during an event at the Cuban Institute for Friendship with the Peoples (ICAP) in Havana, on March 21, 2026. (Ernesto Mastrascusa/AFP via Getty Images)
HOW A RHODES SCHOLAR WITH TIES TO CUBA’S PRESIDENT ORGANIZED THE CONVOY THAT BROUGHT HASAN PIKER TO HAVANA
During the recent convoy in March, Progressive International co-founder David Adler appeared alongside Cuban President Miguel Díaz-Canel and ICAP President González at an official event hosted by ICAP.
Years ago, Los Angeles Mayor Karen Bass participated in Venceremos Brigade trips, a connection that her mayoral candidate Spencer Pratt resurfaced during her campaign. Bass has denied any wrongdoing.
Supporters of such exchanges describe them as educational and humanitarian programs intended to foster international understanding. Critics argue they function as political influence operations designed to build support for the Cuban regime and its ideological objectives.
The Cuban government condemned Rubio’s sanctions shortly after the announcement.
President Miguel Díaz-Canel accused the United States of escalating economic pressure against Cuba and attempting to intensify tensions between the two countries.
Hasan Piker, a Democratic Socialists of America member, and CodePink co-founder Jodie Evans meet in Havana, Cuba, as part of a “United Front” supporting the communist regime. (CodePink via Storyful)
“The Treasury Department has added new names of Cuban leaders, organizations and companies to an illegitimate sanctions list,” Díaz-Canel wrote on social media. “They are aimed at reinforcing the blockade measures and the scenario of conflict between Cuba and the United States.”
Rubio’s warning extended beyond the sanctioned entities.
The action signals that the administration is increasingly focused on the networks, partnerships and influence channels that U.S. officials believe have helped advance Cuban interests abroad long after the Cold War officially ended.
“Anyone providing services to these sanctioned actors is at risk of sanctions themselves,” he said. “Foreign banks and other companies that provide services to these entities should freeze those activities.”
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Fox News Digital’s Reagan Schroeder contributed to this report.
Politics
Commentary: No, Mr. Hilton, our elections are not ‘a joke.’ It’s time for you to stand up to Trump
Well, that didn’t take long.
A day after California’s primary election, President Trump took to social media with baseless claims of election fraud — predictable, but also dangerous.
“Look what’s happening in California, the Dumocrats, right before our very eyes, are stealing the Vote,” Trump wrote in one post.
“There’s BIG cheating by the Dumocrats in California,” he wrote in another, apparently enamored of his latest juvenile slur.
Never mind that his candidate, Steve Hilton, is in the lead — for now anyway.
California has once again become the main dish on Trump’s buffet of bull-hockey as he continues to undermine democracy and consolidate authoritarian power, using this disingenuous and patently untrue narrative that American elections are rigged by shadowy Democratic forces working in collusion with illegal immigrants.
That last part is called the Great Replacement Theory, the idea that “elites” are replacing white people — and white voters — with Black and brown immigrants in a bid to destroy white culture. It’s at the heart of Trump’s voter fraud allegations.
The twist this time is that Hilton, the man who wants to represent all Californians, seems to be jumping on the election fraud conspiracy train with the president. I get it, there’s the MAGA base to feed, and it’s a base that feasts on outrage and fakery. Serving up resentment glazed with lies and propaganda has been the MAGA playbook for years under Trump, a strategy that no one can deny has been heartbreakingly effective.
But Hilton is a smart man and must certainly know that voter fraud is rare, to the point of being inconsequential to election outcomes. Hilton by his own admission understands voting patterns, and that in this cycle, Republicans have voted early and often by mail, despite Trump’s claims that all vote-by-mail should be suspect. So Hilton understands that early votes have skewed his way, and that later vote tallies will likely favor Democrats.
And Hilton is definitely intelligent enough to expect that in a state where Democrats outnumber Republicans nearly three to one, he will not keep the top spot in this primary, and a slim chance remains that he will not make it into the top two. That’s just simple math.
So if Hilton truly seeks to represent this state as its top elected executive, now is the time to renounce election fraud myths and stand up to Trump’s lies. If Hilton can’t say that he believes our recent election was free and fair, then he has no business being our governor.
Unfortunately, that doesn’t seem to be the path he’s taking, even as it seems increasingly likely that he will advance to the general election.
This week, speaking with far-right podcaster and former Turning Point USA creative director Benny Johnson (who was allegedly duped into working for a Russian influence operation), Hilton said that while “so far we’re not seeing any signs” of cheating, “we’re going to be all over it. We’re not going to let them do that.”
Hilton was responding to a question from Johnson on whether Hilton will sue over “cheating.”
On a post-election appearance with Laura Ingraham, the conservative Fox News host who has repeatedly promoted the Great Replacement Theory, Hilton delved into more conspiracy.
“Just to really underline the point that you made about the corruption,” he told Ingraham an anecdote about supposed fraud in a previous election cycle when a “whistleblower” at the post office told him that they were instructed that a handwritten postmark was acceptable when sorting ballots to deliver to the county registrar.
“It’s just unbelievable, and of course, that’s why so many people don’t believe the results, but it just undermines confidence,” he told Ingraham, certainly knowing that the post office forwarding a ballot on to a county registrar in no way means it will be certified or counted. Would we really want the USPS deciding which ballots to deliver? Disingenuous on Hilton’s part at best.
“The whole thing is a joke,” Hilton went on to say of California elections, which of course, is absurd.
Thursday, when I asked Hilton’s team to speak with him about his views on voter fraud, they sent back a response that focused on the slowness of the California vote count; voter rolls Hilton has described as “wildly inaccurate,” which is a wildly inaccurate claim; and two instances of actual fraud with voter registration — not examples of votes that were counted.
To be sure, all those items are important. Any malfeasance should be punished, and the system should always strive to improve.
But how hard is it to simply be against fraud, while accurately acknowledging that it is rare and our current system provides accurate results?
I am against voter registration fraud. I am against vote fraud. I am absolutely pro-democracy, including policies such as mail-in voting that increase participation.
I do not believe that there is widespread fraud in the California primary, or in American elections in general, because the evidence does not support that conspiracy. I do not believe that Democrats are running a decades-long, nationwide conspiracy to replace white voters with votes from Black and brown undocumented immigrants, because that is both false and racist.
Pretty basic stuff, and statements in line with the values and common sense of the majority of Californians Hilton says he will represent.
If Hilton can’t come out and clearly say that Trump is wrong — about fraud and about the Great Replacement Theory — can he really be trusted to represent the values of the Golden State?
Politics
Video: Jan. 6 Rioter Hired by Pentagon
new video loaded: Jan. 6 Rioter Hired by Pentagon
transcript
transcript
Jan. 6 Rioter Hired by Pentagon
Elias Irizarry, who pleaded guilty to climbing through a broken window at the Capitol on Jan. 6, 2021, now works for an office responsible for uncovering and defending against terrorism plots at the Pentagon.
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“Full pardon or commutation?” “Full pardon.”
By Alisa Shodiyev Kaff
June 4, 2026
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