Politics
Newsom, Democrats announce $321-billion California budget deal
California leaders reached a tentative agreement Tuesday night on the state budget, which hinges on Gov. Gavin Newsom’s demand that the Legislature pass a housing reform proposal.
The eleventh-hour negotiations about the spending plan, which takes effect July 1, speak to the political challenge of overhauling longstanding environmental regulations to speed up housing construction in a state controlled by Democrats.
The party has been loath to do more than tweak the California Environmental Quality Act, or approve one-off exemptions, despite pressure from the governor and national criticism of a law that reform advocates say has hamstrung California’s ability to build.
The proposal is among a series of policies Newsom and Democratic lawmakers are expected to advance in the coming days as part of the $321.1-billion budget. The deal reflects the Legislature’s resistance to the governor’s proposed cuts to reduce a $12-billion budget deficit expected in the year ahead, citing uncertainty about the scope of the state’s financial problems.
“We appreciate the strong partnership with the Legislature in reaching this budget agreement,” said Izzy Gardon, a spokesperson for Newsom. “The governor’s signature is contingent on finalizing legislation to cut red tape and unleash housing and infrastructure development across the state — to build more, faster.”
The consensus comes after weeks of conversations about how to offset the deficit, caused by overspending in California, and start to address even larger financial problems anticipated in the future, including from potential federal policy changes.
The tentative deal largely relies on borrowing money, tapping into state reserves, and shifting funding around to close the shortfall. By reducing and delaying many of the governor’s proposed cuts, the budget continues a practice at the state Capitol of sparing state programs from immediate pain while avoiding taking on California’s long-term budget woes.
Assembly Republican Leader James Gallagher (R-Yuba City) said the budget deal papers over the state’s financial problems.
“We’re in this situation because of overspending,” Gallagher said. “We’ve made long-term commitments to programs that Democrats have championed, and now, just like everybody warned, the money is not there to support them all, and they don’t want to cut back their program that they helped expand.”
The cuts lawmakers and the governor ultimately agreed to will reduce the expansion of state-sponsored healthcare to undocumented immigrants and reinstate asset limit tests for Medi-Cal enrollees. The final deal, however, achieves less savings for the state than Newsom originally proposed.
The plan restores cost-of-living adjustments for child-care workers, which the governor wanted to nix, and rejects his call to cap overtime hours for in-home caregivers.
Democrats in the Legislature successfully pushed to provide another $500 million in funding for Homeless Housing, Assistance and Prevention grants. The governor originally resisted giving more money to counties, which he has chastised for being unable to show results for the billions of dollars in state funding they have received to reduce homelessness.
Assembly Budget Chair Jesse Gabriel (D-Encino) pushed back on the notion that the Legislature hasn’t done “real belt-tightening.” Lawmakers are trying to balance compassion and fiscal responsibility before making drastic cuts to safety net programs that Californians rely on, he said.
“That is the balance that we are trying to strike here with this budget of being responsible, of focusing on the work that we need to do regardless, but also understanding that there is a pretty high delta of uncertainty for a lot of reasons,” Gabriel said.
The budget also preserves Newsom’s plan to provide $750 million to expand the California Film and Television Tax Credit, a proposal supported by Hollywood film studios and unions representing workers in the industry.
The tentative agreement is expected to serve as a precursor to more challenging financial discussions about additional reductions in the months ahead.
California expects to lose federal funding from the Trump administration and state officials predict a potentially greater funding dilemma in 2026-27.
Here are few key elements of the budget deal, detailed in summaries of the agreement and legislation:
A housing caveat
Described colloquially as a “poison pill” inserted into the budget bill, the agreement between the Legislature and Newsom will only become law if legislators send the governor a version of a proposal initially introduced by Sen. Scott Wiener (D-San Francisco).
Wiener’s bill is expected to lessen the number of building projects that would require a full environmental review under CEQA and make the process of developing environmental impact reports more efficient.
Paired with another proposal that could exempt more urban housing developments from CEQA, the legislation could mark a significant change in state policy that makes it easier to build.
Newsom is effectively forcing the Wiener proposal through by refusing to sign a budget deal without the CEQA exemptions. The proposal was still being drafted as of Tuesday evening.
The governor declared lofty goals to build more housing on the 2018 gubernatorial campaign trail, but he has failed to spur enough construction to meet housing demand and make homes more affordable.
New York Times columnist Ezra Klein effectively called out the inaction in California caused by the state’s marquee environmental law and a lack of political will in his recent book “Abundance,” which increased pressure on the governor and other Democrats to reconsider their approach and push for more substantial fixes this year.
The CEQA reform bill must be passed by Monday under the budget agreement, which omits a separate Newsom call to streamline the Delta tunnels project.
Changes to Med-Cal funding
Medi-Cal cost overruns are causing major problems for the California budget. The challenges stem from a higher-than-expected price tag for the expansion of state-sponsored healthcare to all income-eligible undocumented immigrants and medical care for other enrollees.
Newsom’s budget proposal in May suggested substantial trims to the healthcare program for people who are undocumented. His plan included freezing new enrollment as of Jan. 1, requiring all adults to pay $100 monthly premiums, eliminating long-term care benefits and cutting full dental coverage. The changes offered minor savings in the year ahead but could save billions of dollars in future years.
Lawmakers ultimately agreed to require undocumented immigrant adults ages 19 to 59 to pay $30 monthly premiums beginning July 2027. They plan to adopt Newsom’s enrollment cap but give people three months to reapply if their coverage lapses instead of immediately cutting off their eligibility.
Democrats agreed to cut full dental coverage for adult immigrants who are undocumented, but delayed the change until July 1, 2026.
State leaders agreed to reinstate much higher limits than the governor originally proposed on the assets Medi-Cal beneficiaries may possess and still get coverage. The new limits would be $130,000 for individuals and $195,00 for couples, compared to prior limits of a few thousand dollars.
They also adopted Newsom’s proposal to withdraw Medi-Cal benefits for specialty weight-loss drugs.
Shifting money around
The negotiations resulted in less general fund spending than the Legislature proposed in a counter to Newsom’s budget revision in May, dropping from $232 billion to an estimated $228 billion for 2025-26.
Officials are using more money from California’s cap-and-trade program, which sets limits on companies’ greenhouse gas emissions and allows them to buy pollution credits from the state, including $1 billion next year. They are also using $300 million from climate change bonds instead of the general fund to pay for environmental programs.
Lawmakers and the governor agreed to delay a $3.4-billion payment on a loan to cover Medi-Cal cost overruns and increase the loan by another $1 billion next year.
Trump uncertainty
The plan continues an agreement to take $7.1 billion from the state’s rainy day fund to help cover the deficit and taps into another $6.5 billion from other cash reserves to balance the budget.
California leaders for months have warned about the so-called Trump effect on the state budget.
Financial analysts at UCLA predict that the state economy is expected to slow in the months ahead due to the effects of Trump’s tariff policy and immigration raids on construction, hospitality, agriculture and other key sectors.
Meanwhile, the state is warning that federal funding reductions to California could require lawmakers to adopt additional budget cuts in August or September, during a special session in the fall or early next year.
State officials expect future deficit estimates to range from $17 to $24 billion annually, according to an Assembly summary of the budget deal.
More to come
The final budget agreement is being publicly released in bits and pieces this week through a series of trailer bills that appear online at random hours.
Lawmakers are expected to pass a main budget bill on Friday and approve additional legislation by Monday, before the July 1 deadline for the budget to go into effect. Some legislation, such as the CEQA housing exemptions, will not appear in print until the end of the week.
Other decisions, such as reauthorizing California’s cap-and-trade program, will be considered later in the year outside of the budget process.
Politics
The growing list of controversies threatening Democrat Graham Platner’s Maine Senate bid
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Maine Democratic Senate candidate Graham Platner has emerged as one of the party’s fastest-rising political figures, drawing national attention for his populist message and outsider image.
But as his profile has grown, so has scrutiny of his past conduct, with controversies ranging from sexually explicit messages and offensive social media posts to a Nazi-linked tattoo and campaign staff upheaval.
PLATNER CONTROVERSIES FUEL SPECULATION ABOUT LITTLE-KNOWN MAINE BALLOT REPLACEMENT PROVISION
In continued clean-up of those scandals, Platner came to Washington, D.C. on Tuesday to huddle with party figures at the Democratic Senatorial Campaign Committee headquarters just one week before his primary election.
The Marine veteran and oyster farmer has defended himself against the criticism and retained the support of prominent Democrats, including Senate Minority Leader Chuck Schumer, D-N.Y., and Sens. Bernie Sanders, I-Vt., and Elizabeth Warren, D-Mass. Still, some have questioned whether the allegations could complicate Democrats’ efforts to unseat Sen. Susan Collins, R-Maine, in one of the nation’s most closely watched Senate races.
Here’s a look at the major controversies that have engulfed Platner’s campaign.
Explicit text messages and sexting allegations
Senate candidate Graham Platner is under fire, but it was his wife Amy Gertner coming out with a controversial five-minute social media post by the campaign to denounce the ‘attacks’ while she did not deny the allegations of infidelity in a new marriage. (Joe Raedle/Getty Images)
The most recent controversy surrounding Platner stems from reports that he exchanged sexually explicit messages with multiple women during his marriage, an issue that campaign aides were reportedly aware of as his Senate bid was taking shape.
The Wall Street Journal reported that Platner’s wife, Amy Gertner, informed a campaign aide about the text exchanges shortly after he launched his Senate bid as staffers were assessing potential political liabilities.
According to the report, Gertner discovered the messages months after the couple married in 2024 and disclosed their existence before her husband held a campaign rally alongside progressive Sen. Sanders. The campaign told Politico that the aide viewed the matter as a private issue between the couple and did not raise concerns about it publicly.
SENATE CANDIDATE GRAHAM PLATNER SENT EXPLICIT TEXTS TO MULTIPLE WOMEN WHILE MARRIED, WIFE SAYS: REPORT
Platner’s campaign later confirmed the existence of the text exchanges to Politico.
He also told Fox News Digital in a statement: “Amy and I went through something hard — because of me. We did the work, and I’m grateful for her every hour of every day.”
“I’ve learned throughout this campaign is that people don’t care about gossip or headlines, they care that you’re fighting for their hospitals, their paycheck, their kids… Our opponents want politics to be empty of content and empty of actual change — and beating that is exactly what our movement is about,” he added.
In a statement to the Journal, Gertner criticized the disclosure of the information, saying she had shared “deeply personal details” about her marriage with someone she considered a friend, only to see those details become public.
She revealed that the two attended couple’s counseling, worked through the issues in their marriage and have since emerged as a stronger couple.
“I know who Graham is. I know the man I married and the husband he has been to me on the best and the worst days of my life,” Gertner said. “That hasn’t changed, and it won’t.”
Nazi-linked tattoo
Graham Platner, a Democratic candidate for U.S. Senate in Maine, points to a covered tattoo that was previously recognized as a Nazi symbol during an interview in Portland, Maine, on Oct. 22, 2025. (WGME via AP)
Platner’s campaign also faced intense scrutiny after it was revealed he once had a skull-and-crossbones tattoo on his chest closely resembling the “Totenkopf” symbol used by Hitler’s SS paramilitary forces.
The Maine Democrat said he got the tattoo during a “night of drinking” while on leave in Croatia in 2007 as a Marine and claimed he was entirely unaware of its meaning at the time.
In an Instagram video posted in May, Platner elaborated on the tattoo’s origins. He explained that he merely selected the design from a flash tattoo wall while “carousing” with fellow Marines in Split, Croatia.
“We thought it looked cool,” he downplayed.
Platner said he was later “appalled” to learn the image resembled a Nazi symbol, arguing that his life and career have been defined by opposition to fascism, racism and Nazism. He also noted that he was never questioned about the tattoo during his military service.
MAINE DEM SENATE HOPEFUL BACKED BY BERNIE SANDERS APOLOGIZES FOR NAZI-STYLE TATTOO, VOWS TO STAY IN RACE
Rather than undergo removal, Platner said he chose to cover the tattoo because tattoo removal services were not readily available near his rural Maine home.
“Going to a tattoo removal place is going to take a while,” he told The Associated Press. “I wanted this thing off my body.”
The symbol was ultimately covered with a tattoo featuring a Celtic knot and images of dogs, which Platner said were meant to honor his family pets.
Deleted Reddit posts reveal offensive comments
U.S. Senate candidate from Maine Graham Platner speaks during a campaign event on May 17, 2026, in Portland, Maine. (Joe Raedle/Getty Images)
The keystone scrutiny Platner has faced during his bid stemmed from thousands of now-deleted Reddit posts that resurfaced after he launched his Senate campaign.
In posts first reported by CNN and Politico, Platner referred to himself as a “communist” and “socialist” and endorsed the slogan “all cops are b—–ds.”
In other posts, he argued that those who “expect to fight fascism without a good semi-automatic rifle, they ought to do some reading of history” and said that “an armed working class is a requirement for economic justice.”
DELETED POSTS URGING VIOLENCE HAUNT DEMOCRATIC SENATE HOPEFUL IN MAINE RACE
The posts under his since-retired username “P-hustle” were deleted before Platner announced his Democratic Senate bid in August.
The candidate has since addressed the posts multiple times, telling CNN and Politico that he was “f—ing around on the internet” during a period when he felt “lost and very disillusioned with our government who sent me overseas to watch my friends die.”
“I made dumb jokes and picked fights,” Platner said. “But of course I’m not a socialist. I’m a small business owner, a Marine Corps veteran, and a retired s—poster.”
In the posts Platner made crude comments about masturbating in port-a-potties and claimed a U.S. service member who took enemy fire in Afghanistan “didn’t deserve to live.”
GRAHAM PLATNER VOWS TO ‘COME AFTER’ BEZOS AS SENATE HOPEFUL ESCALATES BILLIONAIRE TAX FIGHT
The controversies have done little to erode Platner’s standing within the Democratic Party as he has continued to attract national attention and grassroots support in the Democratic primary bid to challenge Sen. Collins for her seat.
Since former Democratic Maine Gov. Janet Mills halted her campaign in April, much of the party establishment has consolidated behind Platner, and national Democrats have continued to support his candidacy despite the flurry of scandals.
The steady stream of allegations and past controversies has also drawn attention to a little-known provision in Maine election law that allows political parties to replace a nominee under certain circumstances after a primary election.
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Under state law, a candidate who wins a primary and subsequently withdraws by 5 p.m. on July 13 can be replaced by a nominee selected by party officials. Any replacement candidate must then be chosen by 5 p.m. on July 27.
There is currently no indication that Platner plans to withdraw from the race, and the Democratic hopeful has repeatedly vowed to continue his campaign. Still, the provision has drawn renewed interest as questions persist about whether additional revelations could complicate his candidacy.
Platner’s campaign did not immediately respond to Fox News Digital’s request for comment.
Politics
Commentary: Bass clears first hurdle, but if Pratt holds off Raman, the mayoral race could be a holy war
L.A. Mayor Karen Bass made what sounded like a victory speech Tuesday night.
Councilmember Nithya Raman made what sounded almost like a concession speech.
And former reality TV star Spencer Pratt relayed a message from the heavens.
“Well, obviously God wanted five more months of me exposing all the failures of our mayor, so it’s gonna be a fun ride,” Pratt said. “I hope she’s ready.”
Assuming Pratt holds on to one of the two spots in the Nov. 3 general election as the final votes are tallied in the next few days, the smart money will be on Bass, for reasons I’ll get into in a moment.
But the supreme being and patron of all pontiffs has to be considered a wild card. This is the first time, to my knowledge, that an incumbent mayor in the City of Angels would be running against a challenger whose campaign manager is God Almighty.
So here we go. We could be in for one of the more remarkable electoral adventures in city history, with a complete novice and MAGA conservative going up against a liberal career politician in a deep-blue city and state full of people who are tired of hearing excuses from Democrats. (If Raman ends up ousting Pratt, my apologies for jumping to conclusions. But it’s not my fault. The devil made me do it.)
If you intend to follow closely, as of course you should, maybe you can help me count the number of times Pratt plays the faith card. I went to St. Peter Martyr School and attended the church by the same name, and I don’t recall ever hearing a nun or a priest drop God’s name as often as Pratt does.
In fact, I just watched a clip of Pratt talking to Fox News TV host and Donald Trump disciple Kayleigh McEnany, and over the course of 1 minute and 52 seconds, he mentioned God or Jesus 10 times.
“Thankfully, I married an angel who was very connected with Jesus and has brought me to the light,” Pratt said of his wife and former reality TV co-star Heidi Montag. “It’s been very empowering to just pray and just be on his path and just say, ‘God, if you want me to save these animals, save these humans and protect my city, just keep putting me in the place where I can do that.’”
Is he running for mayor or cardinal?
Look, I totally respect your average true believer. But I’m not entirely comfortable with a mayor who might be sitting around City Hall waiting for signs and smoke signals rather than knowing what to do on his own.
God has a lot on his plate. He might be busy multiplying fishes and loaves so people don’t go hungry thanks to the president’s tariffs and warmongering. Is he going to rush to answer a prayer for guidance about underfunded parks or broken sidewalks in Los Angeles?
How did we get here, you ask?
Well, Pratt is an AI creation, in a way. A composite of sorts. You combine the forces of social media, political rebellion, second-rate celebrity obsession and the Peter Principle, and here’s a little Trump puppet walking around L.A. like he’s the chosen one.
Add to that the very real essence of his appeal to some voters:
Los Angeles has problems. Big problems that don’t get fixed quickly enough or at all, and Pratt represents the angry voter who wants to know why City Hall can’t do better and where all the money went. He’s absolutely right when he says we shouldn’t have people living on the streets, using drugs on the streets and dying on the streets.
But if Pratt is in the general election rather than Raman, we’re in for a national media circus rather than a summit on solutions. Raman is well-versed on matters of relevance and could have pushed back against Bass in substantive, detailed ways. On the other hand, as Pratt has fairly argued, Raman headed City Council’s homelessness committee, so isn’t she partly to blame for the failures she tried to pin on Bass?
As for Pratt’s policy chops, he has not responded to my offers of a get-together. Absent that, and given his careful avoidance of local reporters who know their stuff, I read his platform on his campaign website and I can tell you that while he touches on many of the right issues — public safety, fiscal integrity, homelessness — attention to detail and depth of knowledge are not God-given strengths.
Maybe Pratt can actually deliver on his promise of a “treatment-led recovery model that addresses mental illness and addiction as the primary drivers of chronic homelessness.” But that would require an act of God (which I suppose is possible given their relationship), because those matters are primarily under the direction of the county, not the city.
This is the main problem here. Bass was beatable, and could have been pushed by a serious challenger to do better.
In the last election, Rick Caruso gave her a scare. That was partly because he had some depth on the issues, he was a successful businessman and philanthropist, he had served on the police commission and the water and power board, he had built relationships across the city and, along with his family, he had poured time and millions of dollars into underserved communities.
In this election, it looks as though Bass could get lucky and face off against a guy who lost his house in the Palisades fire, saw a few homeless encampments through his car window, and decided he wanted to be mayor. Some might have questioned his hubris, but only before learning that he was on a mission from God.
If you’re keeping count, that’s nine mentions of God so far in this column.
One more for the tie, with an eye toward five more months of campaign fodder.
Thank you, God.
steve.lopez@latimes.com
Politics
Bessent flips script on Dem senator with reminder about his son’s past ties to Epstein
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Sen. Ron Wyden, D-Ore., suddenly found himself on the defensive at a budget hearing on Wednesday when, amid levying accusations of the Trump administration’s “corrupt” dealings, Treasury Secretary Scott Bessent fired back by bringing Wyden’s son’s investments into the exchange.
“We would like to hear what Adam Wyden and Jeffrey Epstein talked about,” Bessent said, referring to unearthed emails drawing a connection between the senator’s son and the disgraced financier.
“Did your son and Jeffrey Epstein talk about pole dancing as he begged him for money?”
The moment continues the political fallout for the many names associated with Epstein that — despite not amounting to proof of wrongdoing — continue to prompt embarrassment and scandal at even the smallest mention.
TOP FIERY MOMENTS AS DEMOCRATS CLASH WITH TREASURY SECRETARY BESSENT IN CHAOTIC HILL HEARINGS
Treasury Secretary Scott Bessent, left, pictured along Sen. Ron Wyden, D-Ore, right. (Aaron Schwartz/Bloomberg via Getty Images; Chip Somodevilla/Getty Images)
Epstein, a former financier, died while in prison on charges of sex trafficking minors in 2019, leaving behind questions of whether he facilitated illegal sexual encounters for his vast network of rich and powerful figures.
Amid public demands for transparency on the matter, the Department of Justice released troves of documents on Epstein late last year, unveiling a slew of new names with all manner of ties to the infamous figure ranging from purely innocuous to alarming.
Among them, emails surfaced indicating that Adam Wyden, Ron Wyden’s son, went to Epstein, hoping to gain his support for a business venture.
UNEARTHED EMAILS REVEAL DEM SENATOR’S SON WANTED EPSTEIN TO JOIN HIS FUND: ‘ENJOYED OUR CONVERSATION’
Sen. Ron Wyden leaves a Senate Democratic meeting at the U.S. Capitol Building in Washington, D.C., on Oct. 3, 2025, as the federal government shuts down after Congress and the White House failed to reach a funding deal. (Kevin Dietsch/Getty Images)
“Jeffrey, I wanted to thank you for taking the time to meet with me. I thoroughly enjoyed our conversation and hope my passion and dedication for my business came through in the meeting. I live and breathe this business and take my returns, integrity and reputation quite seriously,” the younger Wyden said in an email in April 2016.
“I intensely appreciate like-minded individuals and would very much look forward to having you join us at the fund.”
The emails came after Epstein pleaded guilty to soliciting a minor for prostitution in Florida in 2008.
It’s unclear what the business venture discussed by Adam Wyden and Epstein may have been or what, specifically, had been discussed in their conversations.
Even so, Bessent reminded viewers that the younger Wyden had a history of investing in off-color markets at Wednesday’s hearing.
DEMOCRATS ARE HAMMERING REPUBLICANS ON EPSTEIN, BUT ONE SENATOR BRUSHED OFF THE ISSUE YEARS AGO
Treasury Secretary Scott Bessent addresses a press conference in Rosenbad after trade talks between the U.S. and China concluded in Stockholm, Sweden, on July 29, 2025. (Magnus Lejhall/TT News Agency/AFP via Getty Images)
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“Your son’s largest investment position was Rick’s Cabaret,” Bessent said, referring to a series of strip clubs.
Wyden, who has widely panned the Trump administration and its many officials for their own connections to Epstein, didn’t respond to Bessent’s jabs.
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