Politics
Newsom celebrates political victory on gas price spike bill, but concerns remain about policy
At a campaign rally in the Coachella Valley, former President Trump on Saturday called out California’s cost of living and nation-leading gas prices as an example of Vice President Kamala Harris and other “radical Democrats” destroying the state.
“Today California has the highest inflation, the highest taxes, the highest gas prices, the highest cost of living, the most regulations,” he said. “We’re not going to let Kamala Harris do to America what she did to California.”
Two days later at the state Capitol, Gov. Gavin Newsom celebrated the passage of a new state law that could lower gasoline price spikes by giving regulators the authority to require that California oil refiners store more inventory.
Newsom and Democratic lawmakers cast the bill as a solution to high gas prices. With less than three weeks until the Nov. 5 election, affordability has become a major political issue and a potential vulnerability for Harris’ presidential campaign.
“It’s about time we stood up,” Newsom said after he signed the bill on Monday. “This is the fourth largest market in the world. This is a big damn deal.”
The newly passed law gives Newsom a win in his political battle with the oil industry, but whether Harris or other Democratic candidates will benefit from the governor’s victory remains unclear.
Newsom’s law will not immediately lower the cost of gasoline in California. While experts say it could ultimately offer reductions of future price spikes, regulators will have to complete a thorough review process to enact the new controls.
Governors in Arizona and Nevada wrote letters warning that the legislation could drive up costs for their constituents, potentially bolstering concerns in pivotal swing states about California’s policies.
Newsom called lawmakers back to Sacramento for a special session to pass the policy. At the same time, however, his administration is expected to adopt stricter limits on carbon fuels that could drive up per-gallon costs by almost half a dollar or more just days after the election.
The governor declined to answer a question at a news conference about whether he thought the new law would affect Democrats in the election, arguing that the effort wasn’t about politics. In a video posted to social media minutes before he signed the bill into law on Monday, Newsom accused the industry of being in “cahoots” with Trump by intentionally pushing prices higher to scare voters during election season.
Opponents have cast his push to address gas prices as an example of “political theatrics.”
“This is politics, not policy,” said Catherine Reheis-Boyd, chief executive of the Western States Petroleum Assn. “This is a show. This is anything but good policy.”
Newsom and the petroleum trade group have been locked in a political battle over gas prices since the summer of 2022. The governor ran ads in Florida calling out Gov. Ron DeSantis’ conservative policies, which prompted a response from the petroleum group blaming Newsom for California’s highest-in-the-nation gas prices.
Since then the governor has repeatedly accused the industry of intentionally gouging consumers.
His administration has pointed out that prices spike when refineries experience unplanned maintenance problems with their equipment, which limits the amount of gasoline available in the state and drives up prices. Requiring the refineries to increase fuel reserves, his administration says, will help prevent those shortages.
Reheis-Boyd has argued that requiring refineries to store more gasoline will increase costs for the companies and drive up prices at the pump. The industry contends that California’s nation-leading gasoline costs are a supply and demand problem in a state that has adopted environmental policies to limit oil drilling and production.
The cheapest way to lower gas prices is to allow oil companies to increase crude oil production in California and rely less on supply from overseas, Reheis-Boyd said.
The state should be working closely with California’s small number of refineries to ensure the state has enough gasoline, instead of adopting new regulations that restrict profits and pushing the companies out of business, she said.
“We have a governor who isn’t interested in the conversation,” Reheis-Boyd said. “He’s the only governor I’ve never met with, because he won’t meet.”
This year marks the second time in two years that Newsom has pushed lawmakers to adopt new oil regulations, an issue that divides Democrats as they navigate desires to fight climate change and lower gas prices.
In 2023, lawmakers balked at passing Newsom’s proposal to penalize oil companies that earn excessive profits. Instead lawmakers adopted new oversight of the industry and gave regulators the ability to cap profits through a rule-making process that has yet to result in any new restrictions.
Democrats in the Legislature were reluctant to pass Newsom’s new oil bill again this year.
Two weeks before the regular session concluded at the end of August, Newsom announced a proposal to require that petroleum refiners maintain a stable inventory in order to prevent fuel shortages and price spikes when refinery equipment is taken offline for maintenance.
Assembly Speaker Robert Rivas (D-Hollister) refused to take up the bill for a floor vote at the end of session, arguing that his caucus did not want to rush legislation through without properly vetting the policy. He agreed to work on the proposal in a special session.
Senate President Pro Tem Mike McGuire (D-Healdsburg) took the opposite approach. His caucus was ready to pass the bill at the end of session, he said, and he initially refused to participate in a special session before giving in to the governor’s demands.
During the special session, the Assembly held a series of hearings before passing the bill earlier this month. The Senate quickly signed off on the proposal the following week.
While some liberal Democrats quietly fumed as the governor forced them to vote on another one of his political proposals, many felt the policy could ultimately reduce price spikes that hurt consumers.
“The data is clear: Price spikes happen when refineries fail to plan for supply during scheduled maintenance,” said Assemblymember Gregg Hart (D-Santa Barbara). “This bill will hold oil companies accountable for resupply plans when refineries’ shutdowns occur, ultimately saving Californians billions at the pump.”
Several Democratic legislators competing for swing-district seats in November did not vote, or opposed the bill.
State Sen. Dave Min (D-Irvine), who declined to vote on the proposal, said he supported the goal to address the problem of high gas prices in the state but did not agree with the approach. Min is locked in a tight race for Congress against Republican Scott Baugh in Orange County.
Min said opponents to Newsom’s proposal “raised serious concerns” about whether it would be effective in lowering gas prices or even be counterproductive.
“These concerns deserve a fair and full vetting, which is difficult to do in a special session conducted just weeks before many of the current legislators will be leaving office,” Min said in a statement.
Republicans said Democrats would reduce gas taxes if they were serious about the problem of affordability.
“So, who’s making the money?” asked state Sen. Brian Dahle (R-Bieber). “Who’s gouging Californians for every gallon of gas? It’s the government. $1.42 for every single gallon of gas goes to taxes, whether it’s state, local or federal.”
Opposition to the proposal from labor unions representing workers in the industry added to the pressures on Democrats.
Tom Baca, the international vice president for western states of the International Brotherhood of Boilermakers, said giving regulators control over maintenance schedules, instead of relying on the insight of the workers with deep knowledge of the equipment, could put his members in dangerous conditions if work is delayed.
David Sikorski, business manager for the International Union of Operating Engineers Local 12, called the special session “unnecessary.”
His union represents 21,000 workers in California, Arizona and Nevada. He said Newsom’s policy could prove to be a liability to Harris in the neighboring swing states of Arizona and Nevada.
“We’ve made some real momentum, hit the ground running in Arizona, and we put a lot of resources into getting friendly politicians, and Kamala Harris, elected in that state,” he said. “This is just one more hurdle that we have to overcome with our membership and working people in general.”
Politics
Trump takes unusual step, lets bipartisan housing bill become law unsigned amid SAVE pressure campaign
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A bipartisan housing bill became law Saturday at midnight after President Donald Trump declined to sign it, capping a weeks-long saga over whether the president would veto the measure amid frustrations with Congress over his stalled agenda.
Trump refused to sign the 21st Century ROAD to Housing Act — legislation aimed at expanding the nation’s housing stock and lowering costs — in an attempt to pressure Congress to pass the SAVE America Act, despite the housing bill clearing both chambers with overwhelming majorities.
“I will not sign the Housing Bill, which has been fully approved by Congress and sent to the White House, in PROTEST over the fact that the United States Senate is not capable of passing THE SAVE AMERICA ACT, which is polling at 97% with the Republican Party, and very high with the non-politician Dumocrats,” he declared on Truth Social Friday morning.
The Trump-backed election measure, which would require proof of citizenship to vote in federal elections and impose voter ID requirements, has struggled to overcome the Senate’s 60-vote threshold.
Meanwhile, the House has not passed a version of the bill that includes the president’s proposed crackdown on mail-in voting and banning men from women’s sports.
President Donald Trump speaks in the Oval Office of the White House, Wednesday, June 3, 2026, in Washington. (Alex Brandon/AP)
HOUSE CONSERVATIVES DERAIL GOP AGENDA IN SAVE AMERICA ACT SHOWDOWN
Under the U.S. Constitution, Trump had 10 days, not including Sundays, to sign or veto the housing measure after the House formally transmitted the legislation to the White House in late June. The president ultimately chose neither option, allowing the measure to become law without his signature.
Though Trump declined to veto the legislation, he sharply criticized elements of the bill and argued it should not have been a legislative priority in recent weeks.
“It’s so unimportant … compared to the SAVE America Act,” Trump told reporters in the Oval Office in late June. “I think the SAVE America Act is exactly what it says. It’s saving America from crooked elections.”
Trump went on to call the housing bill “a yawn,” adding, “compared to the SAVE America Act, just about everything is a big yawn.”
It would have taken a two-thirds majority in both chambers to override a veto — a margin the House and Senate exceeded when they passed the legislation. However, it remains unclear whether so many Republicans would have defied the president had he vetoed the bill.
Trump also appeared to criticize the bill over a provision restricting Wall Street investors from purchasing single-family homes — a policy he first proposed during his January State of the Union address and later urged Congress to pass. Trump previously argued the investor ban would give individual homebuyers a leg up against private equity firms in the housing market.
“I don’t want to hurt people that own houses, too,” Trump later told reporters, appearing to reference the provision. “These people, for the first time in their lives, they have valuable houses. They’ve become rich. I don’t want to hurt them either. What you want to do is what’s good for everyone, get the interest rates down.”
The law also aims to boost housing supply by streamlining federal environmental reviews, loosening rules around the construction of factory-built homes, and incentivizing local governments to modify their zoning laws to allow more housing, among roughly 60 provisions.
Trump’s souring on the legislation created headaches for Republicans, who touted the bill as an affordability win as voters grapple with high housing costs.
“It’s irresponsible to postpone signing the Housing bill due to the SAVE Act,” Sen. Bill Cassidy, R-La., a retiring lawmaker who lost re-election to a Trump-backed challenger, wrote on social media. “We need to start delivering relief to people for the high cost of housing ASAP!!”
Construction workers stand on the roof of homes under construction at a new housing development on June 24, 2026, in Valencia, Calif. (Justin Sullivan/Getty Images)
WARREN TELLS TRUMP TO ‘SIGN THE DAMN BILL’ AS BIPARTISAN HOUSING PACKAGE REMAINS STALLED IN WASHINGTON
Trump abruptly canceled a signing ceremony for the legislation at the U.S. Capitol in June with GOP leaders. The stage had already been set, with at least one senior Republican arriving unaware the president had called off the event shortly before it was scheduled to begin.
The president then declared he would not sign the legislation until Congress passed the SAVE America Act, despite Senate GOP leaders insisting the votes do not exist to advance the measure.
Trump has also expressed frustration with the Republican-controlled Senate for declining to weaken the legislative filibuster, which requires 60 votes to advance most legislation in the upper chamber.
“GET SMART REPUBLICANS, IF YOU DON’T, YOU WON’T BE IN OFFICE FOR LONG!” Trump wrote in a Truth Social post on Sunday.
Before Trump came out against the bill, White House Press Secretary Karoline Leavitt called it “one of the most significant pieces of housing affordability legislation in American history” and said it included an array of policies “long championed” by Trump.
House Speaker Mike Johnson, a Republican from Louisiana, speaks during a news conference at the U.S. Capitol in Washington, D.C., on Oct. 15, 2025. (Eric Lee/Bloomberg via Getty Images)
Meanwhile, Trump political operative James Blair touted the legislation for including the president’s Wall Street investor ban, which he referred to as a “signature commitment.”
House Speaker Mike Johnson, R-La., has argued that Republicans will still promote the landmark housing bill ahead of November.
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“We’ll still celebrate it, but he’s trying to make a point, and I think he’s making it very effectively,” the speaker recently told reporters, referring to Trump. “And the fact that you all ask me every three steps down the hallway illustrates that he has achieved the desired objective, and that is to make SAVE America the number one thing, because if we don’t get that right, everybody’s concerned about what happens next.”
Politics
Trump administration clears path for controversial Mojave Desert water pipeline
The Trump administration has signed off on a company’s plan to convert an oil and gas pipeline to pump groundwater from the Mojave Desert to thirsty California cities for the first time, a lucrative venture that critics say threatens natural springs and wildlife.
The federal Bureau of Land Management released documents Thursday saying that Cadiz Inc.’s plan to repurpose 162 miles of the pipeline to transport water “will not significantly affect” the environment.
“We’re excited to achieve this pivotal milestone. After many years of planning and environmental review, the project has now reached the construction stage,” said Susan Kennedy, chair and chief executive of Cadiz.
Environmental advocates and leaders of Native tribes, who have been fighting the project, criticized the decision.
“This groundwater mining proposal would drain the desert and rob the Mojave of its rare springs and wildlife habitat,” said Chance Wilcox, California desert associate director of the National Parks Conservation Assn. “It’s indefensible that the Trump administration would once again try to revive the pointless Cadiz project, by defying decades of scientific warnings and refusing to conduct an environmental review of the groundwater mining.”
The application for the federal authorization was filed by the Fenner Gap Mutual Water Co. The documents say the company plans to build seven pump stations, three of them located on federal land managed by the agency.
The 30-inch steel pipeline runs underground from Cadiz’s desert property, near the town of Amboy, northward to the town of Mojave.
The BLM said in its authorization that repurposing the pipeline for water “would comply with all applicable statutes and regulations.” The agency said it has “reasonably determined that the impacts of groundwater withdrawal associated with Cadiz’s groundwater extraction project are outside the scope of analysis.”
Cadiz’s attempts to export water from its property 200 miles east of Los Angeles have drawn controversy for decades.
In 2019, Gov. Gavin Newsom signed legislation that requires the project to undergo scientific study and gain approval from the State Lands Commission before it can take water from the Mojave and sell it to California cities.
Activists opposing the company’s plans include civil rights leader Dolores Huerta.
“Cadiz spells destruction for water, sacred lands, and the desert economy,” Huerta said in a statement. “It is exactly this type of greed and injustice that I have dedicated my life to oppose.”
Leaders of nearby tribes have also objected to Cadiz’s plans to pump from the desert aquifer near the Mojave Trails National Monument and Mojave National Preserve.
“It is the living heart of the desert,” said Daniel Leivas, chairman of the Chemehuevi Indian Tribe. “To drain it would be to drain the life out of the entire desert. No profit is worth such desecration.”
Chairman Timothy Williams of the Fort Mojave Indian Tribe said the company’s plan “to pump and sell 25 times more groundwater each year than the aquifer can replenish would desecrate our traditional territories.”
“Pumping more groundwater than is sustainably replenished is not only negligent, but dangerous to the American Desert Southwest,” he said in the joint statement with other opponents of the project.
For years, while pursuing its plan to sell water far away, the company has been using wells on its property to irrigate nearly 2,000 acres of farmland growing lemons, grapes and other crops. It has drilled more wells in anticipation of being able to export water once the government approved its pipeline.
The company intends to pipe water to communities in San Bernardino County and says it’s “expected to provide one of the lowest-cost sources of new water in the drought-plagued Southwest.” It says the federal permit “marks a key milestone as we finalize project financing with prospective investors.”
Cadiz bought the 220-mile pipeline from El Paso Natural Gas in 2020. Once construction is completed, the company says the pipeline will be able to transport up to 25,000 acre-feet of water per year — about 5% of what Los Angeles uses each year.
The Los Angeles-based corporation is also seeking to build a new pipeline along a railroad right-of-way to transport water to the south.
Environmental groups have repeatedly filed lawsuits challenging the project.
Ileene Anderson, a senior scientist at the Center for Biological Diversity, called the Trump administration’s decision “a green light for environmental destruction.”
She said six of the proposed pumping stations slated to be built are in the habitat of desert tortoises, a species in decline.
“We’ve successfully fended off this project before and we’ll continue to fight to stop this zombie from coming back,” Anderson said.
In 2021, the Biden administration reversed a Trump administration decision that had cleared the way for Cadiz to pipe water across public land. In 2022, a federal judge scrapped the pipeline permit that the Trump administration had issued.
But during President Trump’s second term, the company has again made headway on its plans. In February, Cadiz announced that the federal Environmental Protection Agency had invited it to submit an application for a $194-million low-interest loan for the northern pipeline project.
The company said in May that it reached an agreement with the federal Bureau of Reclamation to provide funding for a review of its potential role in “augmenting water supplies” along the shrinking Colorado River.
The company has also been lobbying the Trump administration. The group Public Citizen said in a recent report that Cadiz, through its nonprofit Fenner Gap Mutual Water Co., enlisted former Interior Secretary David Bernhardt’s new lobbying firm, the Bernhardt Group, and has spent at least $330,000 on lobbying in 2025 and 2026.
Records show lobbyist Luke Johnson has repeatedly accompanied Kennedy at meetings with Interior Department officials.
“The extensive influence of David Bernhardt’s boutique lobbying firm on the agency he formerly led highlights how insider firms staffed with former Trump officials have grown in recent years,” said Alan Zibel, a research director with Public Citizen. He said Bernhardt and his lobbyists “have learned how to master influence-peddling in the anything-goes era of Trump 2.0.”
Earlier this month, an Arizona water agency announced it signed an initial “memorandum of understanding” agreement to buy up to 10,000 acre-feet of water per year from Cadiz’s Mojave Groundwater Bank. The Central Arizona Irrigation and Drainage District provides water to farmlands in Pinal County, where growers are dealing with water cutbacks.
The company said that for this to happen, it would need to build pipelines and reach deals to exchange water across state lines.
Members of California’s congressional delegation have raised concerns. In a recent letter to Interior Secretary Doug Burgum, California Sens. Adam Schiff and Alex Padilla called for a thorough environmental review, saying that federal agencies and peer-reviewed scientific analyses have “warned of the significant and irreversible impacts that Cadiz’s project could have on federal lands and surrounding communities.”
Rep. Raul Ruiz (D-Indio) said in a letter to Burgum that he is concerned about the company’s long-standing effort to extract and export groundwater.
“The area I represent cannot afford to absorb the long-term costs of a commercially driven groundwater export scheme,” Ruiz said.
Politics
Trump Promotes ‘Freedom Fuel’ Gas Stations as Gas Prices Rise Again
President Trump has promoted a chain of newly rebranded gas stations across the Philadelphia area with lower gas prices. The New York Times has not been able to get detailed information about who is behind the stations. The Trump administration says it did not fund or subsidize the company.
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