Politics
Newsom threatens to take money from counties that don't reduce homelessness
With television cameras rolling and traffic on a busy San Fernando Valley freeway humming in the background, Gov. Gavin Newsom threatened on Thursday to take away state funding from counties that don’t show improvement on homelessness.
“If we don’t see demonstrable results, I’ll start to redirect money,” Newsom said.
“This is a sincerely held belief that we need local government to step up. This is a crisis. Act like it.”
Unbridled frustration from the Democratic governor over the lack of progress on his top issue — homelessness — isn’t new, nor is warning about stripping money from reluctant counties. As he nears the halfway point of his second and final term in office, Newsom is using his soapbox as governor to increase public pressure and lay blame on local leaders for California’s most glaring humanitarian crisis.
Los Angeles County, in particular, has become a frequent target of Newsom’s ire. The governor again criticized the county on Thursday for delaying implementation of a law that expands the criteria for people to be detained against their will.
Caltrans workers clean up another section of the homeless encampment near Paxton and Remick.
(Jason Armond / Los Angeles Times)
His trip to Pacoima came after his call to remove homeless encampments also appeared to fall on mostly deaf ears last month in Los Angeles, where elected officials criticized the order, or said it changed nothing in their policy approach. The governor’s executive order requires his administration to remove encampments on state property and urged cities and counties to do the same.
Mayor Karen Bass said “strategies that just move people along from one neighborhood to the next or give citations instead of housing do not work.” Los Angeles County Supervisor Lindsay Horvath said the county is already doing “urgent and humane encampment resolution.”
Two weeks later, Newsom arrived in a T-shirt, aviator sunglasses and a baseball cap with a California Department of Transportation crew to clean up encampments near an entrance to the 5 Freeway in Pacoima. The governor said he signed the executive order with “intention.”
“Folks may choose not to do anything differently,” Newsom said Thursday. “That’s a decision that could be made. Here’s what I get to decide. … If that’s the result, I’m going to redirect the money. It’s not complicated and I’m going to send it to people that actually want to get the job done.”
The governor and experts agree that the homelessness crisis is decades in the making, but opinions differ over whether Newsom’s more conservative policy approach and finger-pointing will help fix the issue. A dearth of affordable housing, low wages and the high cost of living are at the crux of a problem that has been exacerbated by mental health challenges and drug abuse.
“If this is not the most important issue, you’re not paying attention,” the governor said of homelessness.
(Jason Armond / Los Angeles Times)
The Newsom administration has spent more than $24 billion to clean up encampments, move Californians off the streets and sidewalks, and convert hotels and motels into temporary shelters, among dozens of other homelessness initiatives. The state has increased spending flexibility for local governments and given cities and counties more authority to force Californians into treatment under programs such as CARE Court and the expansion of conservatorships.
Proposition 1, Newsom’s ballot measure that voters narrowly approved in March, is expected to deliver more than $6 billion for 10,000 treatment and housing beds and expand care for drug addiction.
But Newsom’s policy approach to encampments and forced care have become points of contention between the governor and advocates for the unhoused, aligning him more with conservatives than progressives in his own party. The governor argues that he’s done his job and given cities and counties more funding, tools and authority to address the problem as they requested.
“There’s no more excuses,” Newsom said. “You’ve got the money. You’ve got the flexibility. You’ve got the green light. You’ve got the support from the state and the public is demanding it of you, and if this is not the most important issue, you’re not paying attention. This is the biggest scar on the reputation of the state of California.”
Los Angeles County released a statement defending its response to the homelessness crisis, describing it as a massive and complex undertaking:
“New bed capacity needs to be built to accommodate a population of patients who will require locked facilities when held for treatment involuntarily. Without first taking those steps, the work of moving people off the streets for their own health and safety would fail. This does not mean L.A. County is standing still. Our Pathway Home encampment resolution program already has moved hundreds of people inside as we have also extensively supported the City of L.A.’s Inside Safe program that has sheltered thousands of others.”
In June, Newsom praised a U.S. Supreme Court ruling that allowed Grants Pass, Ore. to enforce a law that banned camping in public places despite the city not having enough shelter to offer the people living in encampments.
Academics and homeless advocates cast Newsom’s encampment order, which followed the ruling, as a reaction to political pressure that could make the problem worse instead of offering a solution to help California’s most vulnerable residents.
“People can’t disappear themselves,” said Margot Kushel, a professor of medicine and the director of the Benioff Homelessness and Housing Initiative at UC San Francisco. “There is no easy way out of this. I have deep compassion for everybody’s frustration. I’m frustrated. I want this problem to be over. I understand this is unacceptable, but I think when you’re in a hole, you need to stop digging.”
Kushel and others described California’s fundamental problem as the shortage of affordable housing. The Newsom administration has spent a lot of funding on the problem of homelessness, Kushel said, but the state still isn’t building enough housing as the need continues to grow.
A state audit also found that California has failed to monitor the effectiveness of its costly homelessness programs, which raised questions about whether Newsom’s efforts are worth the price tag as the state grapples with a budget deficit. The governor has pushed for more accountability around how local governments use state dollars.
The state budget enacted in July broadens the responsibilities of a state Housing Accountability Unit to include oversight of state homelessness grants to cities and counties and adds more staff positions for the work. A separate bill, Assembly Bill 3093, seeks to require local governments to plan to build housing for all income levels, including homeless populations.
San José Mayor Matt Mahan applauded Newsom for focusing on improving accountability.
State transportation crews take part in the cleanup.
(Jason Armond / Los Angeles Times)
Mahan said the development of more affordable housing is critically important, but it takes too long and costs too much to immediately address the problem. San José has focused on using state and federal funding to offer interim and transitional housing communities to provide “a ladder off the streets.”
Last month, Newsom informed San Diego County of the state’s intent to reclaim a $10-million grant to build 150 tiny units for lack of action and redirect the funds to San José.
Mahan said he backs the idea of a statewide framework with set targets and specific goals for local governments to build shelter and treatment for its homeless residents.
“I think it will get us out of the fantasy land of thinking that we can prioritize solutions that will work if we just happen to have another $100 billion,” Mahan said.
Times staff writer Rebecca Ellis contributed to this report.
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A coalition of blue states and jurisdictions is suing the Trump administration over new Medicaid work requirements designed to prevent fraud, arguing the policy unlawfully restricts access to health care coverage.
The lawsuit, filed by at least 25 states and the District of Columbia, alleges the newly implemented Interim Final Rule (IFR) — issued by the Centers for Medicare & Medicaid Services (CMS) — violates federal law and departs from Congress’ original intent and early CMS guidance.
The IFR requires certain individuals to provide documentation proving they are exempt from Medicaid rules requiring enrollees to work, volunteer or attend school due to severe medical conditions.
Before the rule was issued in early June, highly vulnerable Medicaid recipients were set to be automatically exempt from such requirements. Agencies would have granted those exemptions by reviewing existing health records, without requiring individuals to complete additional paperwork ahead of the requirements taking effect in January 2027.
DR. OZ UNVEILS MEDICAID OVERHAUL, CLAMPS DOWN ON $2B FOR ILLEGAL IMMIGRANTS AND MANDATES WORK FOR ABLE-BODIED
Dr. Mehmet Oz, administrator of the Centers for Medicare & Medicaid Services, discussed a number of healthcare topics during a news conference with reporters on Tuesday, June 2, 2026. (Aaron Schwartz/CNP/Bloomberg via Getty Images)
The lawsuit names Dr. Mehmet Oz, administrator of the Centers for Medicare & Medicaid Services (CMS), which issued the IFR, and Robert F. Kennedy Jr., secretary of Health and Human Services (HHS), as defendants.
Oz previously argued that such guardrails are designed to prevent programs from being “defrauded into a turmoil,” adding that able-bodied enrollees receiving American tax dollars should contribute to society.
“If you can work, you should get up and work,” Oz said.
“If we put guardrails around these programs, we’ll allow them to thrive. I’m here because I love Medicaid. The president has already said he loves and cherishes Medicaid and Medicare. … We cannot allow these programs to be defrauded into a turmoil that they cannot pull up from. If we love these programs, we will make the difficult decisions.”
The new rule would require able-bodied individuals to work 20 hours a week, volunteer, or pursue education while enrolled in free healthcare coverage.
Fox News reached out to the White House and HHS for comment.
FED AUDIT, EMERGENCY MEDICAID UNDERCUT DEMS ON ILLEGAL IMMIGRANT HEALTH COVERAGE
Health and Human Services Secretary Robert F. Kennedy Jr. speaks during an interview. ((Photo by Jason Mendez/Getty Images))
The plaintiffs involve California, Connecticut, Delaware, the District of Columbia, Hawaii, Illinois, Maine, Maryland, Massachusetts, New Jersey, New York, Oregon, Rhode Island, Vermont, Washington, Arizona, Colorado, Michigan, Minnesota, Nevada, New Mexico, North Carolina, Pennsylvania, Virginia, Wisconsin and Kentucky.
“People with disabilities, patients in the middle of cancer treatment, or those struggling with another serious or complex health condition, shouldn’t be at risk of losing the care that helps maintain their health,” the suit stated.
REPUBLICANS PRAISE ‘BIG, BEAUTIFUL BILL’S’ WORK REQUIREMENT FOR MEDICAID: ‘WE’VE GOT TO GET BACK TO WORK’
According to the suit, CMS’s own projections estimate that 2.3 million enrollees will lose Medicaid coverage in the first year alone.
The agency also estimates that 7% of enrollees who are working or qualify for an exemption will lose coverage due to confusing paperwork requirements, strict deadlines or missing documentation, according to the document.
Beginning in 2028, enrollees who do not have immediate medical records on file would be limited to a single opportunity to submit a “self-attestation” form declaring, under penalty of perjury, that they are too sick to work.
Under previous guidance, enrollees were allowed to use self-attestation multiple times as their medical needs evolved.
An examination bed sits inside a medical clinic. (AP Photo/Matt York)
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In addition, plaintiffs said the new rules would force states to abandon automated systems they have already invested in and instead build more complex and costly manual review processes.
As the Aug. 31 deadline to mail notices to Medicaid enrollees approaches, the plaintiffs are seeking a temporary stay and a preliminary injunction to block CMS and HHS from enforcing the rules.
California Democratic senators failed to advance a proposal Tuesday that would have barred registered sex offenders from running for office.
State Sen. Scott Wiener (D-San Francisco) voted against Assembly Bill 2753, while fellow Sens. Tom Umberg (D-Santa Ana) and Ben Allen (D-Santa Monica) abstained from a vote that ultimately failed 2-1-2 in the Senate Elections and Constitutional Committee.
The committee’s lone Republican, Steve Choi (R-Irvine), and Sen. Sabrina Cervantes (D-Riverside) voted in favor of the bill, which is likely dead because it failed to get support from a majority of the five-member panel.
AB 2753 could be reviewed in a floor session Thursday, but staff from the office of Assemblywoman Esmeralda Soria (D-Fresno), who authored the bill, are conceding that’s unlikely.
The defeat comes on the heels of unanimous support, including a 60-0 vote in favor on the Assembly Floor on May 7.
“I am deeply disappointed and disheartened after the Senate Elections Committee has failed to advance AB 2753, a bill that would have prohibited any registered sex offender in the State of California from running for local or state public office,” Soria said in a statement.
The bill’s wording said the legislation would “prohibit a person from being a candidate for, or elected to, any state or local elective office if the person has ever been required to register as a sex offender.”
Inquiries to the offices of Sens. Wiener, Umberg and Allen were not immediately returned.
Sex offenses in California are broken up into three tiers. First-tier offenses call for a minimum of 10 years placement on the sex offender registry. Second-tier offenses call for a minimum of 20 years and third tier crimes could result in a lifetime on the registry.
The types of offenses for each tier vary. Tier 1 offenses range from indecent exposure to misdemeanor child pornography and sexual battery. Tier 2 includes incest and penetration with a foreign object, and Tier 3 includes felony possession of child pornography, rape and pimping and pandering of a minor.
Wiener asked for amendments to the bill during the bill’s review and in the committee meeting, including that the lifetime ban only be applied to Tier 3 members.
He pointed to committee analysis of the bill that could affect so-called “Romeo and Juliet” couples — those close in age, for instance with one partner being 19 and the other being 17. If the younger partner sent sexually explicit digital content to the older partner (a misdemeanor), this law could ban the older partner from public office for life.
There were also concerns listed in the analysis that the registry, which dates back to 1947, could include LGBTQ+ offenders from decades ago who were convicted of offenses that are no longer crimes.
Wiener mentioned in the committee meeting civil rights strategist and fighter Bayard Rustin being placed on the California sex offender’s registry list after being arrested by Pasadena Police for having consensual sex with another man in 1953.
“Without the amendment contained in the analysis, I will be voting ‘no’ on this bill and recommending that the committee vote ‘no,’” Wiener said at the committee hearing.
He added that the sex offender list was “not punishment,” but instead “a tool for law enforcement to monitor who may potentially cause a risk.”
While Soria agreed to one bill amendment, she did not accept other provisions, including the elimination of lifetime bans on Tier 1 or 2 offenses.
“The bottom line is this: I was not willing to make additional amendments to this bill,” she said. “I made a promise to my community that I would do everything in my power to ensure they would never have to go through something like this again. Accepting additional amendments to this bill would have jeopardized that promise.”
Some of the impetus behind her bill revolved around the June 2 Fresno City Council election. Registered sex offender Rene Campos fell short of the necessary votes in his bid to run for Central Valley Council.
He was charged with possession of child pornography in 2018 and hosted his campaign kickoff in front of an elementary school.
Nelson Esparza, Fresno City Council President, spoke at the Senate Elections and Constitutional Committee meeting in favor of AB 2753.
“My office received dozens of calls from our residents asking how this could be allowed,” Esparza said of Campos’ candidacy. “AB 2753 closes this loophole.”
It’s unclear if this bill will be reintroduced next year at least at the Assembly level, as Soria is running for the state senate in November.
Politics
Mamdani ripped for claiming victory over capitalism after NYC’s multi-billion dollar taxpayer funded bailout
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New York City’s mayor is again under fire after spewing outlandish claims that his socialist policies are to credit for a balanced budget in the Big Apple, just after the city received a multi-billion dollar bailout from the state.
“In January, our administration inherited a $12 billion budget deficit — a fiscal crisis greater than the Great Recession,” Mayor Zohran Mamdani said in a Tuesday post on X announcing that the debt had been cleared.
“We balanced the budget by taxing the rich and making government more efficient,” Mamdani continued. “We did not balance this budget on the backs of working people, and we never will.”
New York City Mayor Zohran Mamdani speaks during a primary-night watch party for NYC Congressional candidate Claire Valdez at 99 Scott Studio on June 23, 2026 in the East Williamsburg neighborhood of the Brooklyn borough in New York City. (Michael M. Santiago/Getty Images)
MAMDANI ALLOCATES $500K FOR REPARATIONS TALKS AS NYC FACES $5.4B DEFICIT
But the real reason the budget it balanced is because the city was handed $1.5 billion by the state of New York in January — funded by working class taxpayers across the state — as part of a multi-year plan to bail out the fiscally-challenged city. In late May, the city received another $4 billion.
Of the combined $8 billion provided to the city’s bailout fund under former Mayor Eric Adams’ tenure and now Mamdani’s mayorship, $5 billion was directly earmarked for the city to address fiscal measures. This includes allowing city government to defer pension contributions to close the budgetary gap.
Mamdani’s claims about socialist policies producing results — and his failure to mention the massive bailouts provided by taxpayer dollars — did not fly on social media.
New York Gov. Kathy Hochul holds media availability press conference and makes an announcement on abortion rights at the office on 633 3rd Avenue. (Lev Radin/Pacific Press/LightRocket via Getty Images)
MAMDANI ALLOCATES $500K FOR REPARATIONS TALKS AS NYC FACES $5.4B DEFICIT
“This is a lie,” independent journalist Nick Shirley said in a reply to the mayor.
“You balanced the budget by borrowing billions from the NY state government which pushed back pension payments, so you literally took money from ‘the backs of hardworking people.’ Don’t get it twisted,” he added.
Commentator and journalist Nick Sortor also flamed the mayor over the loan and his classification of the bailout.
“Are you saying New Yorkers can ‘balance their budgets’ by taking out massive credit card loans?” he asked sarcastically.
Independent journalist Nick Shirley sat down for an interview with Riley Gaines as part of the launch of Outkick’s “The Riley Gaines Show.” (OutKick)
BROADCAST NETWORKS TOUT MAMDANI’S VICTORIES, PROCLAIM SOCIALISM IS ‘RESONATING’
“Mamdani balanced the budget by taking money from Albany, who in turn taxed Rochester and Buffalo” another social media user said. “That’s who is paying for all of Mamdani’s free crap.”
In a press conference earlier in the day, Mamdani claimed victory over capitalism.
“Throughout this process I have been reminded of the words of the Austrian economist Friedrich Hayek: ‘if socialists understood economics, they wouldn’t be socialists.’”
A man sleeps on the E train, one of the subway lines most utilized by homeless New Yorkers for shelter, in Queens, New York, on Monday, April 7, 2025. (Victor J. Blue for The Washington Post/Getty Images)
After the Republican National Convention (RNC) posted that clip, Mamdani also faced ridicule for that.
“It always looks good at first until the chickens come home to roost,” one person replied.
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“He’ll soon ‘deliver’ bread lines instead,” said another.
Mamdani’s office did not return Fox News Digital’s request for comment.
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