Politics
In San Francisco, Newsom rails against proposed billionaire tax, vows to protect homeless Californians
SAN FRANCISCO — With California facing deep budget uncertainty and widening economic divides, Gov. Gavin Newsom on Friday vowed to protect residents on both ends of the income spectrum — from wealthy business leaders he fears could leave the state to unhoused Californians relying on state-funded services.
That balancing act was on display as Newsom sharpened his criticism of a proposed ballot measure to tax billionaires, a measure opponents say may push tech companies and other businesses out of the state and wound California’s economy.
“It’s already had an outsized impact on the state,” said Newsom, speaking to reporters in San Francisco’s Mission District.
Newsom is trying to head off a union’s plan for a November ballot measure that would put a one-time tax on billionaires. If approved by voters, it would raise $100 billion by imposing a one-time wealth tax of 5% on fortunes.
Service Employees International Union-United Healthcare Workers West, the union behind the proposal, wants to raise money to help millions of Californians affected by widespread healthcare cuts by the Trump administration.
California political leaders, facing a tough budget year, warn that the state does not have the financial capacity to backfill those cuts.
Newsom, who is working behind the scenes with SEIU-UHW in an effort to stop the ballot measure, on Friday appeared doubtful that a deal could be struck with proponents of the measure.
“I don’t know what there is to compromise,” said Newsom, calling the measure “badly drafted” and arguing the money raised wouldn’t be spread among other groups.
“It does not support our public educators. Does not support our teachers and counselors, our librarians. It doesn’t support our first responders and firefighters. Doesn’t support the general fund and parks.”
Two top Newsom advisors, Dan Newman and Brian Brokaw, are raising money and have formed a committee to oppose the measure.
The billionaire tax measure is dividing political leaders in California and the rest of the country, with both Rep. Ro Khanna (D-Fremont) and Sen. Bernie Sanders (I-Vermont) supporting the tax.
“It’s a matter of values,” Khanna said on X. “We believe billionaires can pay a modest wealth tax so working-class Californians have the Medicaid.”
Already, some prominent business leaders are taking steps that appear to be part of a strategy to avoid a potential levy.
On Dec. 31, PayPal co-founder Peter Thiel announced that his firm had opened a new office in Miami, the same day venture capitalist David Sacks said he was opening an office in Austin.
Suzanne Jimenez, chief of staff for SEIU-United Healthcare Workers West, called it a myth that billionaires are leaving the state and criticized Newsom.
“Right now, his priority seems to be protecting roughly 200 ultra-wealthy individuals,” she said. “Healthcare workers are focused on protecting emergency room access and lifesaving care for all 39 million Californians.”
The proposed tax has reverberated throughout the Silicon Valley and Bay Area, home to some of the world’s most lucrative tech companies and financially successful venture capitalists.
Newsom was in San Francisco on Friday, where he served two terms as mayor, to address a separate, more pressing concern for Californians on the opposite end of the economic spectrum — those living in poverty and on the city streets.
Newsom, who is weighing a 2028 presidential run, spoke at Friendship House, a substance-use treatment provider, where the governor said California is turning around the state’s homelessness crisis.
He pointed to a recent 9% statewide drop in unsheltered homelessness as evidence that years of state investment and policy changes are beginning to show results.
That was the first such drop in more than 15 years on an issue that is a political vulnerability for the two-term governor. California still accounts for roughly a quarter of the nation’s homeless population, according to the Public Policy Institute of California.
Newsom said Friday that the decline reflects years of expanded state investment in shelter, housing and behavioral healthcare, combined with stricter expectations for local governments receiving state funds. He said the state’s efforts contrast with what is happening elsewhere, pointing to homelessness continuing to rise nationally.
The governor’s budget proposal, which was released Jan. 9, includes $500 million for California’s Homeless Housing, Assistance and Prevention program, which provides grants to cities, counties and local continuums of care to prevent and reduce homelessness.
That money is paired with investments from Proposition 1, a 2024 ballot measure backed by Newsom and approved by voters. The measure authorized billions in state bonds to expand mental health treatment capacity and housing for people with serious behavioral health needs.
Following Newsom’s budget proposal, legislators, housing advocates and local officials said the funding falls short of the scale of the problem.
That concern is unfolding against a constrained budget backdrop, with the governor’s finance director warning that even as AI-related tax revenues climb, rising costs and federal cuts are expected to leave the state with a projected $3 billion deficit next year.
The nonpartisan Legislative Analyst’s Office said Newsom’s plan leaves California financially exposed, noting that the administration’s higher revenue estimates exclude the risk of a stock market correction that could significantly worsen the state’s budget outlook.
The analyst’s office said those risks are compounded by projected multiyear deficits of $20 billion to $35 billion annually, underscoring what it called a growing structural imbalance.
Newsom on Friday called the LAO’s projections about the budget too pessimistic, but said the office is “absolutely right about structural problems in the state.”
Newsom’s budget does not include significant funding to offset federal cuts to Medicaid and other safety-net programs under President Trump and a Republican-led Congress, reductions that local officials warn could have far-reaching consequences for local governments and low-income residents.
Addressing those broad concerns, the governor defended his budget and suggested the spending plan will change by May, when the state’s financial outlook is more clear.
Times staff writer Seema Mehta and Caroline Petrow-Cohen contributed to this report.
Politics
Trump ally diGenova tapped to lead DOJ probe into Brennan over Russia probe origins
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The Justice Department is turning to former Trump attorney Joeseph diGenova to spearhead a probe into ex-CIA Director John Brennan and others over the origins of the Trump-Russia investigation, as the department reshuffles leadership of the sprawling inquiry.
Acting Attorney General Todd Blanche has tapped diGenova to serve as counsel overseeing the matter, according to a New York Times report, putting a former Trump attorney in a key role in the high-profile probe. A federal grand jury seated in Miami has been impaneled since late last year.
The Department of Justice did not immediately respond to Fox News Digital’s request for comment.
DOJ ACTIVELY PREPARING TO ISSUE GRAND JURY SUBPOENAS RELATING TO JOHN BRENNAN INVESTIGATION: SOURCES
Joseph diGenova represented President Donald Trump during special counsel Robert Mueller’s investigation. (Tom Williams/CQ-Roll Call/Getty Images)
DiGenova, a former U.S. attorney in Washington, D.C., who represented Trump during special counsel Robert Mueller’s investigation, has repeatedly accused Brennan of misconduct tied to the origins of the Russia probe—allegations that have not resulted in criminal charges.
He also said in a 2018 appearance on Fox News that Brennan colluded with the FBI and DOJ to frame Trump.
The origins of the Russia investigation have been the subject of ongoing scrutiny by Trump allies, who have argued that intelligence and law enforcement officials improperly launched the probe.
BRENNAN INDICTMENT COULD COME WITHIN ‘WEEKS’ AS PROSECUTORS REQUEST OFFICIAL TRANSCRIPTS
Joseph diGenova has previously said that ex-CIA chief John Brennan colluded with the FBI and DOJ to frame Trump. (Tom Williams/CQ-Roll Call/Getty Images)
DiGenova’s appointment follows the ouster of Maria Medetis Long, a national security prosecutor in the South Florida U.S. attorney’s office. She had been overseeing the inquiry, including a false statements probe related to Brennan and broader conspiracy-related investigations.
As the investigation continues, federal investigators have issued subpoenas seeking information related to intelligence assessments of Russian interference in the 2016 election.
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John Brennan has denied any wrongdoing related to the Russia investigation. (William B. Plowman/NBC/NBC NewsWire via Getty Images; Alex Wong/Getty Images)
Brennan has previously denied wrongdoing related to the Russia investigation and has defended the intelligence community’s assessment that Moscow interfered in the 2016 election.
Politics
Supreme Court weighs phone searches to find criminals amid complaints of ‘digital dragnets’
WASHINGTON — A man carrying a gun and a cellphone entered a federal credit union in a small town in central Virginia in May 2019 and demanded cash.
He left with $195,000 in a bag and no clue to his identity. But his smartphone was keeping track of him.
What happened next could yield a landmark ruling from the Supreme Court on the 4th Amendment and its restrictions against “unreasonable searches.” The court will hear arguments on the issue on April 27.
Typically, police use tips or leads to find suspects, then seek a search warrant from a judge to enter a house or other private area to seize the evidence that can prove a crime.
Civil libertarians say the new “digital dragnets” work in reverse.
“It’s grab the data and search first. Suspicion later. That’s opposite of how our system has worked, and it’s really dangerous,” said Jake Laperruque, an attorney for the Center for Democracy & Technology.
But these new data scans can be effective in finding criminals.
Lacking leads in the Virginia bank robbery, a police detective turned to what one judge in the case called a “groundbreaking investigative tool … enabling the relentless collection of eerily precise location data.”
Cellphones can be tracked through towers, and Google stored this location history data for hundreds of millions of users. The detective sent Google a demand for information known as a “geofence warrant,” referring to a virtual fence around a particular geographic area at a specific time.
The officer sought phones that were within 150 yards of the bank during the hour of the robbery. He used that data to locate Okello Chatrie, then obtained a search warrant of his home where the cash and the holdup notes were found.
Chatrie entered a conditional guilty plea, but the Supreme Court will hear his appeal next week.
The justices agreed to decide whether geofence warrants violate the 4th Amendment.
The outcome may go beyond location tracking. At issue more broadly is the legal status of the vast amount of privately stored data that can be easily scanned.
This may include words or phrases found in Google searches or in emails. For example, investigators may want to know who searched for a particular address in the weeks before an arson or a murder took place there or who searched for information on making a particular type of bomb.
Judges are deeply divided on how this fits with the 4th Amendment.
Two years ago, the conservative U.S. Court of Appeals for the 5th Circuit in New Orleans ruled “geofence warrants are general warrants categorically prohibited by the 4th Amendment.”
Chief Justice John Roberts sided with the court’s liberals in a 4th Amendment privacy case in 2018.
(Alex Wong / Getty Images)
Historians of the 4th Amendment say the constitutional ban on “unreasonable searches and seizures” arose from the anger in the American colonies over British officers using general warrants to search homes and stores even when they had no reason to suspect any particular person of wrongdoing.
The National Assn. of Criminal Defense Lawyers relies on that contention in opposing geofence warrants.
Its lawyers argued the government obtained Chatrie’s “private location information … with an unconstitutional general warrant that compelled Google to conduct a fishing expedition through millions of Google accounts, without any basis for believing that any one of them would contain incriminating evidence.”
Meanwhile, the more liberal 4th Circuit in Virginia divided 7-7 to reject Chatrie’s appeal. Several judges explained the law was not clear, and the police officer had done nothing wrong.
“There was no search here,” Judge J. Harvie Wilkinson wrote in a concurring opinion that defended the use of this tracking data.
He pointed to Supreme Court rulings in the 1970s declaring that check records held by a bank or dialing records held by a phone company were not private and could be searched by investigators without a warrant.
Chatrie had agreed to having his location records held by Google. If financial records for several months are not private, the judge wrote, “surely this request for a two-hour snapshot of one’s public movements” is not private either.
Google changed its policy in 2023 and no longer stores location history data for all of its users. But cellphone carriers continue to receive warrants that seek tracking data.
Wilkinson, a prominent conservative from the Reagan era, also argued it would be a mistake for the courts to “frustrate law enforcement’s ability to keep pace with tech-savvy criminals” or cause “more cold cases to go unsolved. Think of a murder where the culprit leaves behind his encrypted phone and nothing else. No fingerprints, no witnesses, no murder weapon. But because the killer allowed Google to track his location, a geofence warrant can crack the case,” he wrote.
Judges in Los Angeles upheld the use of a geofence warrant to find and convict two men for a robbery and murder in a bank parking lot in Paramount.
The victim, Adbadalla Thabet, collected cash from gas stations in Downey, Bellflower, Compton and Lynwood early in the morning before driving to the bank.
After he was robbed and shot, a Los Angeles County sheriff’s detective found video surveillance that showed he had been followed by two cars whose license plates could not be seen.
The detective then sought a geofence warrant from a Superior Court judge that asked Google for location data for six designated spots on the morning of the murder.
That led to the identification of Daniel Meza and Walter Meneses, who pleaded guilty to the crimes. A California Court of Appeal rejected their 4th Amendment claim in 2023, even though the judges said they had legal doubts about the “novelty of the particular surveillance technique at issue.”
The Supreme Court has also been split on how to apply the 4th Amendment to new types of surveillance.
By a 5-4 vote, the court in 2018 ruled the FBI should have obtained a search warrant before it required a cellphone company to turn over 127 days of records for Timothy Carpenter, a suspect in a series of store robberies in Michigan.
The data confirmed Carpenter was nearby when four of the stores were robbed.
Chief Justice John G. Roberts, joined by four liberal justices, said this lengthy surveillance violated privacy rights protected by the 4th Amendment.
The “seismic shifts in technology” could permit total surveillance of the public, Roberts wrote, and “we decline to grant the state unrestricted access” to these databases.
But he described the Carpenter decision as “narrow” because it turned on the many weeks of surveillance data.
In dissent, four conservatives questioned how tracking someone’s driving violates their privacy. Surveillance cameras and license plate readers are commonly used by investigators and have rarely been challenged.
Solicitor Gen. D. John Sauer relies on that argument in his defense of Chatrie’s conviction. “An individual has no reasonable expectation of privacy in movements that anyone could see,” he wrote.
The justices will issue a decision by the end of June.
Politics
Trump renews bridge, power plant threat against Iran in push for deal, mocks ‘tough guy’ IRGC
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President Donald Trump mocked the Islamic Revolutionary Guard on Sunday morning for staking claim to a Strait of Hormuz “blockade” the U.S. military had already put in place.
“Iran recently announced that they were closing the Strait, which is strange, because our BLOCKADE has already closed it,” Trump wrote on Truth Social. “They’re helping us without knowing, and they are the ones that lose with the closed passage, $500 Million Dollars a day! The United States loses nothing.
“In fact, many Ships are headed, right now, to the U.S., Texas, Louisiana, and Alaska, to load up, compliments of the IRGC, always wanting to be ‘the tough guy!’”
Trump declared Saturday’s IRGC fire was “a total violation” of the ceasefire.
“Iran decided to fire bullets yesterday in the Strait of Hormuz — A Total Violation of our Ceasefire Agreement!” his post began.
“Many of them were aimed at a French Ship, and a Freighter from the United Kingdom. That wasn’t nice, was it? My Representatives are going to Islamabad, Pakistan — They will be there tomorrow evening, for Negotiations.”
Trump remains hopeful about diplomacy, but is not ruling out a return to force, where he once warned about ending “civilation” in Iran as they know it.
“We’re offering a very fair and reasonable DEAL, and I hope they take it because, if they don’t, the United States is going to knock out every single Power Plant, and every single Bridge, in Iran,” Trump’s stern warning continued.
“NO MORE MR. NICE GUY!
“They’ll come down fast, they’ll come down easy and, if they don’t take the DEAL, it will be my Honor to do what has to be done, which should have been done to Iran, by other Presidents, for the last 47 years. IT’S TIME FOR THE IRAN KILLING MACHINE TO END!”
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