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Times investigation spurs complaints seeking federal probe of Kevin McCarthy PAC spending at luxury resort

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Times investigation spurs complaints seeking federal probe of Kevin McCarthy PAC spending at luxury resort

Federal election officials have been asked to investigate whether former House Speaker Kevin McCarthy personally benefited in violation of the law from the nearly quarter of a million dollars his campaign committees spent at a luxury Rancho Palos Verdes resort while he served in congressional leadership.

Complaints filed with the Federal Elections Commission by two workers at the Terranea Resort cite the findings of a Times investigation published in December that showed that two McCarthy committees spent about $240,000 at the seaside hotel and spa during a 2½-year period ending in 2018. The committees reported to the FEC that the expenses were for lodging and catering, and a McCarthy campaign spokesman told The Times they were for “our annual event,” which he also described as a “PAC retreat.”

The five-page complaints, which mirror each other, note that McCarthy did not provide to the FEC or The Times a more detailed explanation of the Terranea outlays, including the number of such retreats.

“Thus, this only adds to the question about the actual use of these funds,” the complaints say, adding that the payments “may have been made, not for legitimate PAC or campaign activities, but to personally enrich” McCarthy. The complaints also name McCarthy’s committees and their treasurer, Jill Thomson.

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The McCarthy spokesman, Drew Florio, did not respond to Times requests to interview the former congressman and Thomson or otherwise obtain a comment from them about the complaints. An FEC spokesperson said the agency does not comment on requests for investigations or whether a probe has been launched.

The complaints were filed by Terranea employees Antonio Rodriguez and David Gomez Martinez through a law firm that represents Unite Here Local 11, a labor union that is locked in a battle to organize workers at the resort. Rodriguez and Gomez Martinez are supporters of the unionization campaign.

The two employees state in the complaints that they worked at the resort “in various roles in the banquet and catering departments during the period in which these payments were made and do not have any knowledge or recollection of an event or events hosted by or held on behalf of Congressman McCarthy or his committees at the resort.” The complaints were notarized and signed under penalty of perjury.

They point out that the owners of Terranea, including Robert J. Lowe, founder of the company that developed the resort, have been major financial contributors to McCarthy’s committees. The complaints allege that the donations show that the relationship between McCarthy and the hotel owners is “extremely cozy.”

“The FEC needs to investigate where all this political money is going,” Rodriguez said in an email to The Times. Gomez Martinez declined to comment.

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Lowe did not respond to an interview requests made through his corporate office.

The Times investigation found that most of the money McCarthy spent at Terranea came from a thinly regulated leadership PAC he controlled, the Majority Committee PAC. The newspaper also reported that, according to FEC records, the Bakersfield Republican’s leadership PAC shelled out more than $1 million on hotels, private air travel and eateries from 2012 through last June.

That’s more than double the combined total spent by the leadership PACs of the seven other lawmakers who’ve held the top House and Senate positions for their parties during all or part of that period, according to a Times analysis of FEC filings. A historic rebellion led by far-right Republicans ousted McCarthy as speaker in October, and he resigned from Congress in December.

Leadership PACs like McCarthy’s are subject to fewer spending controls than other campaign accounts. The legal guardrails on the PACs are so flimsy that the FEC determined last year that there is no bar on tapping committee money for personal expenses. As a result, lawmakers can use the PACs as slush funds to underwrite sumptuous lifestyles, good government advocates say.

But federal law does prohibit Congress members from spending funds from other campaign accounts on personal uses. About $116,000 of McCarthy’s expenses at Terranea came from one of his campaign committees. Most of that amount — $68,000 — was reported to the FEC as catering and lodging costs.

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Altogether, the two McCarthy committees made 20 payments to Terranea from 2015 to 2018, while he served as House majority leader. Most were listed under the expense category of “lodging,” and 11 were in even-numbered amounts, such as $7,500 and $10,000. The reports did not explain why those amounts were in round dollars.

McCarthy’s spending at Terranea particularly stands out among the current and former congressional leaders because so much of the money has been reported as going toward lodging. And there’s no indication in McCarthy’s FEC filings why the Terranea expenses were heavy during the 2 ½-year period and then stopped, although one McCarthy campaign committee reported about $470 in meal expenses there in 2022.

The FEC does not require politicians to disclose on the finance reports many details of spending beyond the recipient, date, amount and general category of the expense. McCarthy’s records do not say who stayed or dined at Terranea courtesy of the committees, and there are no breakdowns for how much the PAC spent per night for a room, and nothing about what type of rooms, or how many, were rented. The records offer few clues as to whether the spending was in connection with specific fundraising events or any other campaign activities.

Florio, the McCarthy spokesman, said in a statement to The Times in October that the “expenses were for lodging, catering, event room rentals associated with the PAC retreat.”

He did not respond to follow-up questions, including those about the number of people who attended any events and the specific costs assigned to each one.

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Violations of the law barring personal use of money from campaign accounts that are not leadership PACs have led to criminal convictions of former members of Congress, among them Duncan Hunter, a San Diego County Republican. Former Rep. George Santos (R-N.Y.) was expelled from Congress in December after House investigators determined that he spent tens of thousands of campaign dollars on rent, a sexually explicit website, Botox and luxury goods.

But the regulations for leadership PACs have been ill-defined since the FEC authorized the committees in the late 1970s. Critics contend that the prohibition on personal use of campaign money — outlined under the federal Election Campaign Act — also applies to the leadership committees, but they have been unable to persuade a majority of the FEC to take that position.

In its decision last winter, the FEC ruled 4 to 2 that nothing in the law bars politicians from using leadership PAC money for personal expenses. The decision resulted from a complaint that a leadership PAC for former House member Lou Barletta (R-Pa.) had paid his wife $33,000 in rent for a property that he owns with her.

Advocates for tougher enforcement of campaign finance laws have long accused the FEC of looking the other way when presented with complaints of alleged violations. Among them is Saurav Ghosh, director of federal campaign finance reform for the Washington-based Campaign Legal Center, a nonprofit organization whose mission includes advocating for transparency in election spending.

“The FEC doesn’t enforce the law in most cases,” Ghosh said.

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Through the agency’s press office, The Times asked the six commissioners who preside over the FEC to respond to that criticism and received no reply.

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Video: Trump Says ‘Only Time Will Tell’ How Long U.S. Controls Venezuela

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Video: Trump Says ‘Only Time Will Tell’ How Long U.S. Controls Venezuela

new video loaded: Trump Says ‘Only Time Will Tell’ How Long U.S. Controls Venezuela

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Trump Says ‘Only Time Will Tell’ How Long U.S. Controls Venezuela

President Trump did not say exactly how long the the United states would control Venezuela, but said that it could last years.

“How Long do you think you’ll be running Venezuela?” “Only time will tell. Like three months. six months, a year, longer?” “I would say much longer than that.” “Much longer, and, and —” “We have to rebuild. You have to rebuild the country, and we will rebuild it in a very profitable way. We’re going to be using oil, and we’re going to be taking oil. We’re getting oil prices down, and we’re going to be giving money to Venezuela, which they desperately need. I would love to go, yeah. I think at some point, it will be safe.” “What would trigger a decision to send ground troops into Venezuela?” “I wouldn’t want to tell you that because I can’t, I can’t give up information like that to a reporter. As good as you may be, I just can’t talk about that.” “Would you do it if you couldn’t get at the oil? Would you do it —” “If they’re treating us with great respect. As you know, we’re getting along very well with the administration that is there right now.” “Have you spoken to Delcy Rodríguez?” “I don’t want to comment on that, but Marco speaks to her all the time.”

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President Trump did not say exactly how long the the United states would control Venezuela, but said that it could last years.

January 8, 2026

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Trump calls for $1.5T defense budget to build ‘dream military’

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Trump calls for .5T defense budget to build ‘dream military’

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President Donald Trump called for defense spending to be raised to $1.5 trillion, a 50% increase over this year’s budget. 

“After long and difficult negotiations with Senators, Congressmen, Secretaries, and other Political Representatives, I have determined that, for the Good of our Country, especially in these very troubled and dangerous times, our Military Budget for the year 2027 should not be $1 Trillion Dollars, but rather $1.5 Trillion Dollars,” Trump wrote on Truth Social on Thursday evening. 

“This will allow us to build the “Dream Military” that we have long been entitled to and, more importantly, that will keep us SAFE and SECURE, regardless of foe.” 

The president said he came up with the number after tariff revenues created a surplus of cash. He claimed the levies were bringing in enough money to pay for both a major boost to the defense budget “easily,” pay down the national debt, which is over $38 trillion, and offer “a substantial dividend to moderate income patriots.”

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SENATE SENDS $901B DEFENSE BILL TO TRUMP AFTER CLASHES OVER BOAT STRIKE, DC AIRSPACE

President Donald Trump called for defense spending to be raised to $1.5 trillion, a 50% increase over this year’s record budget.  (AP Photo/Evan Vucci)

The boost likely reflects efforts to fund Trump’s ambitious military plans, from the Golden Dome homeland missile defense shield to a new ‘Trump class’ of battleships.

The Committee for a Responsible Federal Budget found that the increased budget would cost about $5 trillion from 2027 to 2035, or $5.7 trillion with interest. Tariff revenues, the group found, would cover about half the cost – $2.5 trillion or $3 trillion with interest. 

The Supreme Court is expected to rule in a major case Friday that will determine the legality of Trump’s sweeping tariff strategy.

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CONGRESS UNVEILS $900B DEFENSE BILL TARGETING CHINA WITH TECH BANS, INVESTMENT CRACKDOWN, US TROOP PAY RAISE

This year the defense budget is expected to breach $1 trillion for the first time thanks to a $150 billion reconciliation bill Congress passed to boost the expected $900 billion defense spending legislation for fiscal year 2026. Congress has yet to pass a full-year defense budget for 2026.

Some Republicans have long called for a major increase to defense spending to bring the topline total to 5% of GDP, as the $1.5 trillion budget would do, up from the current 3.5%.

The boost likely reflects efforts to fund Trump’s ambitious military plans, from the Golden Dome homeland missile defense shield to a new ‘Trump class’ of battleships. (Lockheed Martin via Reuters)

Trump has ramped up pressure on Europe to increase its national security spending to 5% of GDP – 3.5% on core military requirements and 1.5% on defense-related areas like cybersecurity and critical infrastructure.

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Trump’s budget announcement came hours after defense stocks took a dip when he condemned the performance rates of major defense contractors. In a separate Truth Social post he announced he would not allow defense firms to buy back their own stocks, offer large salaries to executives or issue dividends to shareholders. 

“Executive Pay Packages in the Defense Industry are exorbitant and unjustifiable given how slowly these Companies are delivering vital Equipment to our Military, and our Allies,” he said. 

“​Defense Companies are not producing our Great Military Equipment rapidly enough and, once produced, not maintaining it properly or quickly.”

U.S. Army soldiers stand near an armored military vehicle on the outskirts of Rumaylan in Syria’s northeastern Hasakeh province, bordering Turkey, on March 27, 2023.  (Delil Souleiman/AFP via Getty Images)

He said that executives would not be allowed to make above $5 million until they build new production plants.

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Stock buybacks, dividends and executive compensation are generally governed by securities law, state corporate law and private contracts, and cannot be broadly restricted without congressional action.

An executive order the White House released Wednesday frames the restrictions as conditions on future defense contracts, rather than a blanket prohibition. The order directs the secretary of war to ensure that new contracts include provisions barring stock buybacks and corporate distributions during periods of underperformance, non-compliance or inadequate production, as determined by the Pentagon.

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Newsom moves to reshape who runs California’s schools under budget plan

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Newsom moves to reshape who runs California’s schools under budget plan

Gov. Gavin Newsom on Thursday unveiled a sweeping proposal to overhaul how California’s education system is governed, calling for structural changes that he said would shift oversight of the Department of Education and redefine the role of the state’s elected schools chief.

The proposal, which is part of Newsom’s state budget plan that will be released Friday, would unify the policymaking State Board of Education with the department, which is responsible for carrying out those policies. The governor said the change would better align education efforts from early childhood through college.

“California can no longer postpone reforms that have been recommended regularly for a century,” Newsom said in a statement. “These critical reforms will bring greater accountability, clarity, and coherence to how we serve our students and schools.”

Few details were provided about how the role of the state superintendent of public instruction would change, beyond a greater focus on fostering coordination and aligning education policy.

The changes would require approval from state lawmakers, who will be in the state Capitol on Thursday for Newsom’s last State of the State speech in his final year as governor.

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The proposal would implement recommendations from a 2002 report by the state Legislature, titled “California’s Master Plan for Education,” which described the state’s K-12 governance as fragmented and “with overlapping roles that sometimes operate in conflict with one another, to the detriment of the educational services offered to students.” Newsom’s office said similar concerns have been raised repeatedly since 1920 and were echoed again in a December 2025 report by research center Policy Analysis for California Education.

“The sobering reality of California’s education system is that too few schools can now provide the conditions in which the State can fairly ask students to learn to the highest standards, let alone prepare themselves to meet their future learning needs,” the Legislature’s 2002 report stated. Those most harmed are often low-income students and students of color, the report added.

“California’s education governance system is complex and too often creates challenges for school leaders,” Edgar Zazueta, executive director of the Assn. of California School Administrators, said in a statement provided by Newsom’s office. “As responsibilities and demands on schools continue to increase, educators need governance systems that are designed to better support positive student outcomes.”

The current budget allocated $137.6 billion for education from transitional kindergarten through the 12th grade — the highest per-pupil funding level in state history — and Newsom’s office said his proposal is intended to ensure those investments translate into more consistent support and improved outcomes statewide.

“For decades the fragmented and inefficient structure overseeing our public education system has hindered our students’ ability to succeed and thrive,” Ted Lempert, president of advocacy group Children Now, said in a statement provided by the governor’s office. “Major reform is essential, and we’re thrilled that the Governor is tackling this issue to improve our kids’ education.”

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