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Public defenders, foster kids, climate: Programs created during California's boom may stall amid deficit

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Public defenders, foster kids, climate: Programs created during California's boom may stall amid deficit

Just a few years ago, California’s budget was overflowing with a record high surplus, spurring the creation of a slew of programs reflecting the state’s liberal ideals.

Democrats who control the state Capitol funded pilots to test new ways to support foster youth, help oil workers transition to cleaner industries and prevent more Californians from becoming homeless — just some of the ambitious ideas that became reality when the budget was flush.

Now, as the state faces an enormous budget deficit that the nonpartisan Legislative Analyst’s Office predicted in February could be as much as $73 billion, some of those programs could come to a screeching halt.

Gov. Gavin Newsom and Democratic lawmakers are considering significant cuts to some of the very initiatives they recently helped launch while promising to “protect our progress.”

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It’s both a reflection of California’s wild budget fluctuations and what can happen in a one-party state known as a progressive policy trailblazer when financial times are good.

For Republicans, it’s an “I told you so” moment.

“The surpluses were absolutely abnormal. They should have put much more money into the budgetary reserve than they did,” said Sen. Roger Niello (R-Fair Oaks), vice chair of the Senate Budget Committee.

Newsom’s budget last year included record reserves of nearly $38 billion, but for those in the minority party like Niello, more could have been put away in lieu of creating costly new programs.

“Let’s not get too crazy with these huge revenues,” is the approach Democrats should have taken, Niello said.

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Organizations such as the California Budget Policy Center, which advocates for low-income residents and policies that curb inequities, argue there’s nothing wrong with trying out new ideas when the money is there.

“The state needs these opportunities to experiment and practice innovation because you can improve the efficiency and effectiveness during those periods of time,” said Chris Hoene, executive director of the center. “The deficit is forcing them to pull back on a significant share of programs but … if there are better revenue periods ahead, they have said they will continue to make those investments.”

Reducing or altogether eliminating newer programs that are still being tested is better than cutting long established programs that Californians rely on, said H.D. Palmer, a spokesperson for Newsom’s Department of Finance.

“These clearly are proposals that wouldn’t be put forward were [it] not for the fact that we’ve got a substantial shortfall,” Palmer said. “It is understandable that people would have objections to these proposals. The question then becomes: What alternatives would people want to put forward, if you choose not to do these measures, that would provide us a like amount of savings to close the shortfall?”

Sen. Dave Min (D-Irvine) put it more bluntly during a legislative budget meeting held at the Capitol last week: “I’ll just be honest, this sucks.”

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Newsom signed into law this week a budget agreement made with lawmakers that reduces the deficit by $17 billion, though it’s only a first step toward closing the yawning gap in the state’s spending plan.

As negotiations continue leading up to the June 15 deadline for lawmakers to pass a budget, here are some of the pilot programs Newsom has suggested scaling back or eliminating:

Support for public defenders and eligible prisoners

Prisoners who can’t afford to pay private attorneys and are eligible to have their sentences shortened could potentially stay behind bars longer due to one proposed funding reduction.

In 2021, a public defense pilot program was created to help attorneys cope with a backlog of cases involving prisoners eligible for earlier release under the state’s latest progressive resentencing laws.

Under the program, county public defender offices have received $100 million, collectively helping free more than 8,000 people in the program’s first six months, according to the California Board of State and Community Corrections. Many of those beneficiaries were charged with murder because of their involvement in a felony that led to a death, even if they were not the actual killer — a remnant of a law that California overturned in 2019.

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The program now faces a $40-million reduction — a move proponents say could render some of California’s resentencing laws useless because understaffed and overburdened offices won’t be able to adequately assist those eligible.

A representative for Newsom said the funding given so far “still provides data for the evaluation of the results” of the program. But Ricardo Garcia, public defender for Los Angeles County, says it will hamper the state’s efforts to “right some of the mistakes of the past.”

In Los Angeles County, the program has led to the release of more than 100 prisoners, representing 685 fewer years of total potential incarceration, according to Garcia. The program has allowed Garcia’s office to hire more public defenders, social workers and support staff as they represent more than 800 eligible clients who await resentencing.

“Having all these statutes in place … isn’t very helpful if we don’t have the resources to implement it and to really make them effective,” Garcia said.

Help for struggling foster kids

Since 2019, thousands of foster kids — and some of their caretakers — have been able to call a 24/7 hotline for help with everyday conflicts and receive expert support.

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The urgent response system was prompted by concerns about “placement disruptions” that can lead to instability and possibly homelessness for the already vulnerable youths.

The hotline annually serves about 5,000 foster children and caregivers, according to state data.

Child welfare advocates are calling on the governor and lawmakers to reconsider a $30-million proposed reduction — a cut they say will shutter the program entirely.

Foster placement changes in California decreased by 16% since the launch of the hotline, according to the data, and advocates say that’s no coincidence.

“We’re certain cutting it will lead to serious negative outcomes for foster children, including increased hospitalization and criminalization,” Ted Lempert, president of Children Now, said.

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Funding for low-income housing

In 2023 alone, more than 100,000 Californians had to move because the owners of their homes fell behind on their bills, according to the Community Landtrust Network.

The foreclosure intervention housing preservation program was launched as a way to prevent displacement of renters. It offers grants to residents and nonprofits so they can buy properties at risk of foreclosure and keep them available as homes for people with low incomes.

Proponents of the program called it an “unprecedented” solution to the state’s homelessness crisis because it allows at-risk renters to stay where they are instead of potentially being forced onto the streets or into shelters.

Newsom proposed cutting $248 million meant for the program over three years — about half its total budget. Advocates are urging him to change his mind, as the funding has not even yet been disbursed.

“The need for the program is too great and both [the California Department of Housing & Community Development] and other key stakeholders have sunk too many resources into this pioneering housing strategy to hobble it now,” the Community Landtrust Network said in a statement.

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A slew of climate friendly programs

Low-income Californians at the highest risk of wildfires destroying their homes, and oil and gas workers at risk of losing their jobs, are among those who could feel the brunt of climate programs now on the chopping block.

Funding reductions are proposed for a home hardening initiative, a program that helps workers find new jobs as the state moves away from fossil fuels, and a program that promotes composting in local governments.

The proposed reductions have environmental activists concerned, even as the budget draft maintains billions in investments to curb climate change and California is considered an international leader on the issue.

“The state needs to accelerate its efforts to prepare, not pull back — especially in vulnerable and underresourced communities,” Zack Cefalu, a legislative affairs analyst for the League of California Cities, said.

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Rep. Kevin Kiley opts against challenging fellow Republican Tom McClintock

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Rep. Kevin Kiley opts against challenging fellow Republican Tom McClintock

Northern California Rep. Kevin Kiley (R-Rocklin), whose congressional district was carved up in the redistricting ballot measures approved by voters last year, announced Monday that he would not challenge fellow Republican Rep. Tom McClintock of Elk Grove. Instead, he plans to run in the Democratic-leaning district where he resides.

“It’s true that I was fully prepared to run in [McClintock’s district], having tested the waters and with polls showing a favorable outlook in a ‘safe’ district. But doing what’s easy and what’s right are often not the same,” Kiley posted on the social media site X. “And at the end of the day, as much as I love the communities in [that] District that I represent now – and as excited as I was about the new ones – seeking office in a district that doesn’t include my hometown didn’t feel right.”

Kiley, 41, currently represents a congressional district that spans Lake Tahoe to Sacramento. He did not respond to requests for comment.

But after California voters in November passed Proposition 50 — a ballot measure to redraw the state’s congressional districts in an effort to counter Trump’s moves to increase the numbers of Republicans in Congress — Kiley’s district was sliced up into other districts.

As the filing deadline approaches, Kiley pondered his path forward in a decision that was compared by political insiders to the reality television show “The Bachelor.” Who would receive the final rose? McClintock’s new sprawling congressional district includes swaths of gold country, the Central Valley and Death Valley. The district Kiley opted to run in includes the city of Sacramento and the suburbs of Roseville and Rocklin in Placer County.

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Kiley was facing headwinds because of the Republican institutional support that lined up behind McClintock, 69, who has been in Congress since 2009 and served in the state Legislature for 26 years previously. President Trump, the California Republican Party and the Club for Growth’s political action committee are among the people and groups who have endorsed McClintock.

Conservative strategist Jon Fleischman, a former executive director of the state GOP, said he was thrilled by Kiley’s decision, which avoids a divisive intraparty battle.

“If you open up the dictionary and look for the word conservative, it’s a photo of Tom McClintock. He is the ideological leader of conservatives, not only in California but in Congress for many, many years,” Fleischman said, adding that the endorsements for McClintock purposefully came because Kiley was considering challenging him.

Kiley, who grew up near Sacramento, attended Harvard University and Yale Law School. A former Teach for America member, he served in the state Assembly for six years before being elected to Congress in 2022 with Trump’s backing. But he has bucked the president, notably on tariffs. He also unsuccessfully ran to replace Gov. Gavin Newsom during the 2021 recall, and has been a constant critic of the governor.

Kiley is now running in a Sacramento-area district represented by Rep. Ami Bera (D-Elk Grove). Democrats in the newly drawn district had a nearly 9-point voter registration edge in 2024. Bera is now running in the new version of Kiley’s district.

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In Kiley’s new race, his top rival is Dr. Richard Pan of Sacramento, a former state senator and staunch supporter of vaccinations.

“Kevin Kiley can try to rebrand himself, but voters know his extreme record,” Pan said in a statement. “He has stood with Donald Trump 98% of the time and was named a ‘MAGA Champion.’ The people of this district deserve better than political opportunism disguised as moderation. This race is about who will actually fight for healthcare, public health, and working families. I’ve done that my entire career. Kevin Kiley has not.”

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Video: Defense Officials Give No Timeline for War in Iran as U.S. Boosts Forces

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Video: Defense Officials Give No Timeline for War in Iran as U.S. Boosts Forces

new video loaded: Defense Officials Give No Timeline for War in Iran as U.S. Boosts Forces

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Defense Officials Give No Timeline for War in Iran as U.S. Boosts Forces

At a Pentagon news conference, top defense officials said that the U.S. military was sending more forces to the Middle East and expects to “take additional losses.” Earlier, President Trump said that the U.S. could continue striking Iran for the next four to five weeks.

“We didn’t start this war, but under President Trump, we are finishing it. This operation is a clear, devastating, decisive mission. Destroy the missile threat. Destroy the navy. No nukes. President Trump has all the latitude in the world to talk about how long it may or may not take. Four weeks. Two weeks, six weeks. It could move up. It could move back. We’re going to execute at his command the objectives we’ve set out to achieve.” “We expect to take additional losses. And as always, we will work to minimize U.S. losses. But as the secretary said, this is major combat operations.” Reporter: “Are there currently any American boots on the ground in Iran?” “No, but we’re not going to go into the exercise of what we will or will not do. I think — it’s one of those fallacies for a long time that this department or presidents or others should tell the American people. This — and our enemies by the way — here’s exactly what we’ll do. Why in the world would we tell you, you, the enemy, anybody, what we will or will not do in pursuit of an objective?”

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At a Pentagon news conference, top defense officials said that the U.S. military was sending more forces to the Middle East and expects to “take additional losses.” Earlier, President Trump said that the U.S. could continue striking Iran for the next four to five weeks.

By Christina Kelso

March 2, 2026

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Gas prices could jump as Middle East tensions threaten global oil supply

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Gas prices could jump as Middle East tensions threaten global oil supply

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Americans could soon see higher gas prices as escalating tensions in the Middle East threaten a critical global oil chokepoint, raising fears of supply disruptions that could quickly reverberate across U.S. energy markets.

After joint U.S.–Israeli strikes, dubbed Operation Epic Fury, targeted Iranian sites over the weekend and killed Iran’s Supreme Leader Ayatollah Ali Khamenei, concerns quickly shifted to how Tehran might respond and whether oil infrastructure or tanker traffic could become collateral damage.

Any disruption to global crude supplies could translate into higher costs for American drivers at the pump.

“Every time we’ve had flare-ups in the Middle East like we’re seeing right now — and we’ve seen this kind of situation periodically over the last 50 years — it has caused significant disruption to energy markets,” economist Stephen Moore told Fox News Digital. 

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“I would expect we could see anywhere from 25 to 50 cents a gallon increase in gas prices in the short term,” he said.

Experts say Americans will likely pay more for gas due to the ongoing conflict in the Middle East. (Matthew Hatcher/Bloomberg/Getty Images)

Market data already shows prices moving higher.

Patrick De Haan, head of petroleum analysis at GasBuddy, said oil prices were up $5 per barrel, while wholesale gasoline prices had risen 11 cents per gallon.

He expects retail gas prices to begin climbing immediately, especially in areas where stations tend to adjust prices in sharp, periodic jumps.

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The national average could hit $3 per gallon as soon as Monday, De Haan said, with some stations increasing prices by 10 to 30 cents this week and potentially more in markets that see larger price swings.

Moore warned that prices could climb further and remain elevated if vital transit routes or oil facilities are disrupted.

TRUMP PLEDGES TO ‘AVENGE’ FALLEN US SERVICE MEMBERS AS TENSIONS WITH IRAN INTENSIFY

The ongoing conflict in Iran is near a major energy corridor. (Contributor/Getty Images)

“Huge amounts of global oil travel through the Strait of Hormuz, so this could be incredibly disruptive, delaying delivery of oil and gas,” he said.

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“The Iranians have already knocked out some oil facilities in the Middle East, and who knows what they’re up to next. When you have less supply, prices go up. The big question is whether this will be a temporary bump or something more prolonged.”

The ongoing conflict sits near the Strait of Hormuz, one of the world’s most strategically important energy corridors.

“This shipping route represents around 25% of global oil trade and 23% of liquefied natural gas trade,” explained Jaime Brito, executive director of refining and oil products at OPIS.

The Strait of Hormuz, a narrow shipping lane between Iran and Oman that has long been a flashpoint during regional crises, serves as a vital artery for global energy markets.

Roughly 20 million barrels of crude oil and petroleum products — about one-fifth of global oil supply — transit the strait each day, underscoring how disruption there can quickly send shockwaves through international energy markets.

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HORMUZ ERUPTS: ATTACKS, GPS JAMMING, HOUTHI THREATS ROCK STRAIT AMID US-ISRAELI STRIKES

A satellite view of the Strait of Hormuz, a critical chokepoint for global energy supply, connecting the Persian Gulf to the Gulf of Oman.  (Gallo Images/Orbital Horizon/Copernicus Sentinel Data 2025/Amanda Macias/Fox News Digital)

Highlighting the growing concern, Maersk, widely regarded as a bellwether for global ocean freight, said it will suspend all vessel crossings through the Strait of Hormuz until further notice and cautioned that services to Arabian Gulf ports may be delayed.

Still, not all price movements are immediate.

“Developments over the weekend in the Middle East should hypothetically take time to ripple into the global supply chain. An initial assessment would suggest no specific price impacts should be seen in the gasoline market across the world, including the U.S.,” Brito told Fox News Digital.

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However, Brito said prices could climb quickly if markets expect trouble ahead, even before supplies are actually affected.

As a result, Brito said, developments in Iran may have already translated into higher gasoline, diesel and other fuel prices in parts of the U.S., depending on regional supply dynamics and individual company pricing strategies.

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Experts say the increase in gas prices will be largely determined by how long the conflict in the Middle East lasts. (John McCall/South Florida Sun Sentinel/Tribune News Service via Getty Images)

From a domestic standpoint, Brito added that gasoline prices follow a seasonal pattern, typically climbing during the summer travel months.

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“March prices are not expected to be significantly high,” he said, noting that spring break travel could support demand in certain areas — but not at the level seen during peak summer driving season.

Ultimately, the direction of gasoline prices will depend less on seasonal demand and more on how the geopolitical situation unfolds in the days ahead.

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