Politics
Newsom signs off on 100% California tax for money from Trump’s $1.8-billion ‘slush fund’
Gov. Gavin Newsom has signed off on a 100% state tax on money any Californians receive from Trump’s $1.8-billion “anti-weaponization” fund for his political allies.
Newsom unveiled his proposal in May, after Trump’s Justice Department said it would create a fund to compensate Trump’s allies who claim they have “suffered weaponization and lawfare” under Biden’s Justice Department.
The settlement fund was criticized by politicians on both sides of the aisle, including Sen. Mitch McConnell (R-Ky.), who described it as a “slush fund to pay people who assault cops.”
The fund remains in legal limbo. Earlier this month, a federal judge in Virginia extended a court-ordered block on the plan, which critics warned could be used to pay pardoned Jan. 6 rioters.
Fast-tracked into law as part of Senate Bill 122, Newsom’s plan imposes “a tax on any settlement fund payment from the federal Anti-Weaponization Fund, or any subsequent fund, settlement, or agreement, as provided, at a rate of 100%,” according to the bill text. The tax applies to all tax years between 2026 and 2030.
Newsom signed the bill Tuesday. In a statement, his office said the tax is meant to ensure that, should Trump’s fund proceed, California recipients won’t “receive favorable state treatment on those payments.”
“We believe democracy is worth defending, the rule of law matters, and public dollars should support victims—not those who attacked the very institutions that protect our freedoms,” Newsom said in the statement.
University of Southern California law professor Ariel Jurow Kleiman, an expert on tax law and policy, said that while Newsom’s tax is a “novel legal strategy,” she believes there is “no categorical legal restriction” preventing California from implementing it.
States have a “wide degree of discretion” to design their tax systems — including how they define income — so long as they do not violate their constitutions, Jurow Kleiman said.
If a California resident wanted to challenge the tax in court, they would need to show they were harmed by it to have standing to sue, according to Jurow Kleiman. That would mean receiving a payment from Trump’s settlement fund and then paying the 100% California tax. Unless the settlement fund is established and distributes payments, that scenario is unlikely.
While there have been proposals to levy a 100% tax on income above certain thresholds — Sen. Bernie Sanders (I-Vt.) in 2023 said he supports a 100% tax on income exceeding $1 billion — Jurow Kleiman said she is not aware of any governments that have adopted such a policy.
Politics
Socialism goes west as DSA-backed challenger ousts longtime Democrat
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Rep. Diana DeGette, D-Colo., a 30-year incumbent, lost to a Democratic Socialists of America (DSA)-backed challenger in a high-profile primary on Tuesday evening.
Melat Kiros, a 29-year-old socialist, defeated DeGette in a Democratic primary for a deep-blue House seat anchored in Denver, according to The Associated Press, scoring a major victory for the socialist left on Tuesday evening.
The DSA had been aiming to cast DeGette’s loss as evidence of its growing momentum after a slate of socialist candidates won Democratic primaries in New York City last week.
“Today, the East Coast, next week the Mountain West,” the DSA wrote in a social media post last week.
Rep. Diana DeGette speaks during a press conference outside the U.S. Capitol building in Washington, D.C., on Jan. 10, 2024. (Samuel Corum/Getty Images)
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If elected in November, Kiros, who was born in Ethiopia, will likely join the ranks of the far-left group known as the Squad and become one of a handful of the House chamber’s outspoken socialists.
The millennial challenger was endorsed by Sen. Bernie Sanders, I-Vt., Rep. Alexandria Ocasio-Cortez, D-N.Y., and the anti-incumbent leftist organization Justice Democrats. Controversial socialist streamer Hasan Piker, who has said Hamas is “a thousand times better” than Israel and praised the Chinese Communist Party, also backed Kiros’ insurgent primary run.
DeGette, a member of the Congressional Progressive Caucus who supports abolishing Immigration and Customs Enforcement (ICE), sought to win a 16th House term by flexing her leftist bona fides. She argued her seniority on an influential House committee would allow her to push for Medicare-for-All legislation — a longtime priority of the party’s far-left flank.
DeGette, who was endorsed by former CPC Chairwoman Pramila Jayapal, D-Wash., also spotlighted her experience as an impeachment manager during Trump’s second impeachment trial in 2021.
Though DeGette and Kiros shared few policy disagreements, they diverged sharply over Israel and antisemitism. Kiros also sharply criticized DeGette for accepting corporate PAC contributions.
Kiros, a PhD student and lawyer, was fired from a New York firm in 2023 after publishing an open letter, arguing that pro-Palestinian student protesters calling for the elimination of Israel were not antisemitic and appearing to defend Hamas.
Melat Kiros participated in a League of Women Voters Congressional District 1 candidate forum at Montview Presbyterian Church in Denver on May 28, 2026. (RJ Sangosti/MediaNews Group/The Denver Post)
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She has also described the Oct. 7, 2023, attacks against the Jewish state as the “inevitable consequence of apartheid” and declined to characterize the deadly firebombing of protesters in Boulder last year who were urging the release of hostages held by Hamas in Gaza as antisemitic.
“I don’t know what was in the heart of the perpetrator,” Kiros told Colorado’s 9News in a recent television interview. “All I know is that he went and attacked innocent people because of what they might have believed.”
A June 2025 bipartisan resolution condemning the attack as part of a “rise in ideologically motivated attacks on Jewish individuals” won every present lawmaker’s support, except for Reps. Rashida Tlaib, D-Mich., and Thomas Massie, R-Ky., who voted present.
Kiros has also suggested the United States deserved 9/11.
“Inevitable in the sense that we destabilized a lot of the Middle East that forced people to believe that another act of violence was the only response,” Kiros told 9News when asked if she thought the terror attack was “the inevitable consequence of American foreign policy.”
“And again, just like I said before, our responsibility is to get rid of those conditions that lead to violence in the first place,” Kiros continued.
DeGette argued that Kiros’ embrace of Piker and her comments about antisemitism and 9/11 were disqualifying.
“I’m shocked and disgusted that Kiros is doubling down on excusing terrorism and the murder of innocent people,” the 30-year incumbent wrote on Facebook earlier this month.
Streamer and creator Hasan Piker speaks at a press conference during day two of Web Summit Vancouver at the Vancouver Convention Centre in Vancouver, Canada, on May 13, 2026. (Sam Barnes/Web Summit via Sportsfile via Getty Images)
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Colorado’s 1st Congressional District is the most liberal seat in the state and voted for former Vice President Kamala Harris by 56 points in 2024.
The primary fight was further scrambled by University of Colorado Regent Wanda James, also running for DeGette’s seat. Though James did not pose the same threat as Kiros, her vote share could ultimately have swayed the contest.
Politics
Congress eyes rare bipartisan housing win with or without Trump’s help
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The House has officially shipped a colossal bipartisan housing package to President Donald Trump, and lawmakers are hoping that, at the very least, he doesn’t veto it.
Trump was supposed to sign the 21st Century ROAD to Housing Act last week, but his last-minute decision to ghost the signing ceremony with House Speaker Mike Johnson, R-La., and Senate Majority Leader John Thune, R-S.D., put into question whether the bill was dead.
His refusal to sign the bill, which passed with overwhelmingly bipartisan support in both chambers, was to leverage the Safeguarding American Voter Eligibility (SAVE) America Act, which doesn’t currently have the votes to succeed in the Senate.
WARREN TELLS TRUMP TO ‘SIGN THE DAMN BILL’ AS BIPARTISAN HOUSING PACKAGE REMAINS STALLED IN WASHINGTON
Trump has refused to sign the 21st Century ROAD to Housing Act. (Shawn Thew/EPA/Bloomberg via Getty Images)
Trump appears to be in no hurry to sign the bill, despite Republicans who are hungry for a win in the affordability fight ahead of the midterm elections.
“It’s so unimportant … compared to the SAVE America Act,” Trump told reporters in the Oval Office on Monday. “I think the SAVE America Act is exactly what it says. It’s saving America from crooked elections.”
“Here’s what I would like to sign, much more than a bill that — big deal, it’s a yawn,” he continued. “Some people say it’s wonderful. To me, compared to the SAVE America Act, just about everything is a big yawn.”
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It’s legislation that is loaded with nearly 60 provisions from both sides of the aisle in both chambers that’s designed to make it easier for homes to be built and for younger Americans to buy their first home. It also includes a ban on hedge funds buying up housing stock that Trump pushed Congress to include during the State of the Union earlier this year.
Sen. Elizabeth Warren, D-Mass., one of the architects behind the bill in the upper chamber alongside Sen. Tim Scott, R-S.C., charged that Congress handed the bill to Trump “on a silver platter.”
“When you ask me what happens next, if he cared about the American people, he’d have already signed the damned thing, and we’d be underway,” Warren said on WCVB’s “On the Record” on Sunday.
But Trump doesn’t have to put his signature on the bill for it to become law.
IRATE REPUBLICANS ACCUSE TRUMP OF HANDING DEMOCRATS A WIN AFTER BLOWING UP HOUSING PACKAGE
The Senate advanced a massive, Trump-backed housing package geared toward lowering the costs of homes and supercharging the housing supply. Sen. Elizabeth Warren, D-Mass., pitched it as legislation to prevent America from becoming a “nation of renters.” (Jemal Countess/Getty Images for Protect Borrowers; Anna Moneymaker/Getty Images)
The Constitution grants presidents the ability to veto a bill within 10 days of it being transferred over to the White House. In that scenario, Congress could override a veto of the housing package.
It’s happened before under the Trump administration. In early 2021, Congress overrode Trump’s veto of the annual National Defense Authorization Act — a massive Pentagon funding authorization package that some House Republicans are trying to use as a vehicle to pass the SAVE America Act.
But during that 10-day period, if Trump doesn’t sign the bill, it would automatically become law. That’s unless Congress completely adjourns, in which case a “pocket veto” could happen. The Senate is currently in recess and the House is scheduled to leave town by week’s end, but neither count as a full adjournment.
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Johnson, who spent the last few days meeting with Trump at the White House about the housing bill and the SAVE America Act, said: “I hope he does sign it.”
“If he doesn’t, it’s still law,” Johnson said. “We’ll still celebrate it, but he’s trying to make a point, and I think he’s making it very effectively. 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
British regulator may challenge Paramount takeover of Warner Bros. Discovery
Britain’s culture minister may challenge Paramount Skydance’s takeover of Warner Bros. Discovery — presenting a potential speed-bump to David Ellison’s plan to wrap up his $111-billion deal by September.
Earlier this month, Paramount secured the U.S. Justice Department’s blessing to buy the Warner assets, which include CNN, HBO, Cartoon Network, Animal Planet and the Warner Bros. film and TV studios in Burbank.
Paramount also must win the approval of British and European regulators, who are known for drilling deeply into media matters because of their influence on society.
Britain’s Competition and Markets Authority took a preliminary step this month by opening an investigation into Ellison’s proposed merger.
On Tuesday, Lisa Nandy, Britain’s Secretary of State for Culture, Media and Sport, notified Parliament that she was inclined to intervene in the blockbuster deal.
In a written statement, Nandy cited her ability to weigh in on “public interest grounds,” due to concerns about maintaining a competitive media market in Britain.
“The UK’s move to intervene in the Paramount–WBD deal confirms what we’ve been saying for months. The real regulatory risk was never in the US — it’s in Europe,” Forrester VP Research Director Mike Proulx said Tuesday in a statement.
While Nandy cautioned she has not made “a final decision on intervention at this stage,” she has invited Paramount and Warner Bros. to respond to her concerns by July 6.
June 2026 photo of Culture, Media and Sport Secretary Lisa Nandy arriving at Downing Street for the weekly Government cabinet meeting in London.
(Alishia Abodunde/Getty Images)
Paramount did not offer immediate comment.
The company owns CBS News, children’s channel Nickelodeon and Channel 5, one of the largest over-the-air television broadcasters in the United Kingdom.
Warner Bros. Discovery owns CNN, Cartoon Network and TNT Sports, which broadcasts the Olympics, Champions League and Premier League soccer matches.
“I am conscious that the proposed acquisition is global in nature,” Nandy wrote in her statement. “In reaching this decision, my focus has been, and will remain, on the UK public interest and the range of services available to UK audiences, including Channel 5, TNT Sports, Cartoon Network, Nickelodeon, and CNN International, as well as Paramount+ and HBO Max.”
If Nandy decides to intervene, the Office of Communications, known as Ofcom, would launch an assessment of the deal. Britain’s Competition and Markets Authority also would determine how the merger might reshape the competitive landscape.
Teams from the two companies have been huddling for months to plan for the melding of the two operations as soon as Paramount receives all of its regulatory approvals.
Australia, New Zealand, China, Saudi Arabia, Ukraine, Serbia, France and Italy have already given their approvals to the deal.
Saudi Arabia’s Public Investment Fund is planning to contribute $10 billion to help the billionaire Ellison family pull off the merger, which would make the Saudi royal family a significant, although passive, equity owner. In addition, the royal families of Qatar and Abu Dhabi have agreed to each contribute $7 billion in equity financing.
The Federal Communications Commission must evaluate the foreign ownership stakes due to Paramount’s holding of CBS broadcast licenses. U.S. antitrust regulators already have concluded the combination would not violate federal anticompetition laws.
Approval had been expected because President Trump — who has friendly ties with Ellison and his father, tech billionaire Larry Ellison — favors the deal.
Trump has been eager for changes at CNN.
The U.S. government stopped short of asking Paramount to make concessions or divestitures. Many expect that Paramount may have to reconfigure its children’s television holdings abroad due to the proposed combination of two large players — Nickelodeon and Cartoon Network.
Nandy suggested that Britain also should scrutinize the impact of combining two major streaming services HBO Max, a Warner property, with Paramount+.
HBO programming, including “Game of Thrones,” “Boardwalk Empire,” and “Succession,” has long been popular in Britain.
A coalition of state attorneys general, led by California Atty. Gen. Rob Bonta, also is expected to challenge the deal, in part, due to concerns about news media consolidation. Bonta’s office has said the matter remains under review.
Opposition to the deal has been building in the U.S. for months. A group of Hollywood activists — led by actors Jane Fonda and Mark Ruffalo — have spearheaded a “block the merger” campaign that now has support from more than 5,000 entertainment workers.
The group’s open letter calls on Bonta to take action to thwart the Ellison expansion effort. Paramount’s Chief Legal Officer Makan Delrahim has blasted the campaign, calling it “fear-mongering” and a partisan distortion of antitrust law.
Forrester’s Proulx noted differences in attitudes toward the deal among the various constituencies.
“For US consumers, this merger has become a proxy fight about political influence and control of media,” Proulx said. “In the UK, it’s being treated as a structural competition issue where regulators, not consumers, will decide how this deal plays out and how long it takes.”
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