Politics
What to know about Gov. Newsom’s plan to offset California’s $45-billion deficit
Faced with a $44.9-billion budget deficit, Gov. Gavin Newsom described a plan to shrink the size of state government and slow his progressive policy agenda by eliminating 10,000 vacant state jobs and pausing an expansion of subsidized childcare, among dozens of other cuts.
Newsom’s revised $288 billion budget proposal, announced Friday, projected California’s deficit to be $7 billion more than the shortfall his administration projected in January. The grim forecast was driven by lower than expected state revenues, continuing a pendulum swing from the fiscal boom of the COVID-19 pandemic.
“These are things we worked closely with the Legislature to advance,” Newsom said of the cuts. “None of this is the kind of work you enjoy doing, but you’ve got to do it. We have to be responsible. We have to be accountable.”
Newsom’s plan to close the deficit relies on $17.3 billion in savings from budget cuts he and lawmakers agreed to in April and using $4.2 billion from the state’s rainy day fund and budget reserves for the upcoming fiscal year. The proposed spending reductions Newsom touched on Friday also reverse and slash an additional $8.2 billion in funding, including money he had set aside for some of his marquee progressive policies in 2024-25.
The governor’s revised budget proposal, which includes updated revenue projections after the state income tax filing deadline, typically jump-starts negotiations with Democratic leaders in the Senate and Assembly over a final fiscal plan for the upcoming year. The state Constitution requires lawmakers to approve the state budget by June 15.
An ‘incomplete’ plan
The governor’s budget plan released Friday was incomplete compared to prior years. The administration provided only a 50-page summary of his proposal, a truncated proposal compared to the detailed, 260-page spending plan Newsom released in January.
Newsom’s budget news conference was originally scheduled for next Tuesday, the deadline for the governor to share his revised budget with the state Legislature. But Newsom is flying to Rome to speak at a climate conference at the Vatican that day and bumped his presentation up to Friday.
The change left the state Department of Finance, the fiscal arm of his administration, short on time to finalize a full budget summary, and additional documents, said H.D. Palmer, a spokesperson for the Finance Department. More information, his aides said, will be made available when additional documents are made public on Tuesday.
“The only difference this year is that the governor moved up the press conference,” Palmer said. “It is his May revision. It is his press conference. He gets to do it when he wants to and we will do what needs to be done to prepare for that press conference.”
How bad is the budget problem?
Newsom cast California’s current financial situation as a return to normal after the federal government provided trillions of dollars in funding to individuals, families, businesses and state governments during the COVID-19 pandemic, payouts that resulted in a historic surplus in California.
But those flush times did not last, and poor revenue forecasts in recent years have also deepened the state’s fiscal troubles.
Newsom’s estimate of a $100-billion surplus two years ago ended up far too rosy, and revenue in subsequent years also fell short of projections. A decision by the federal government to delay the 2022 federal income tax deadline from April to November due to winter storms complicated California’s ability to project revenues last year.
Newsom said his plan not only solves the budget deficit for the current and upcoming years, but also begins to make a dent in potential shortfalls through the end of his second term as governor in 2027. The administration proposed additional cuts, reductions and delays to solve an estimated $28.4 billion deficit in 2025-2026.
The governor said his strategy relies on delaying, diverting and cutting funding for new programs that haven’t started. He said he was careful to avoid taking away funding from existing programs already serving residents.
But that doesn’t mean his plan won’t affect millions of Californians who rely on government safety-net programs, as well as state workers.
Why does the deficit number keep changing?
In January, the Newsom administration predicted that California would have a $37.9-billion deficit to reckon with in the budget that lawmakers adopt in June.
Newsom and leaders of the Senate and Assembly reached an early agreement in April on $17.3 billion in reductions though most of those changes will not be passed into law until next month. Lawmakers passed a budget trailer bill that lowers unspent funding allocations in 2022-23 and 2023-24 by $1.6 billion last month.
The deficit number Newsom presented Friday subtracts the $17.3 billion in cuts agreed to earlier from the $37.9-billion deficit estimate from January.
Revenues have fallen short of expectations since January, deepening the budget problem by $7 billion
Newsom is projecting a shortfall of $27.6 billion in 2024-25, but California is making cuts and reductions to solve a total budget deficit of $44.9 billion this year.
What does Newsom want to cut?
The April agreement between lawmakers and the governor included $762 million in savings by pausing hiring for vacant state jobs. Newsom’s updated proposal permanently deletes 10,000 open positions, which unions viewed as a potentially better option than furloughs or delaying planned salary increases to save money.
Newsom’s proposal includes savings from the deactivation of 46 housing at 13 state prisons, which would save $80.6 million. This comes as California’s prison population has declined by nearly 25 percent since 2019 and as the state prepares for the closure of its third prison, which Newsom said is now planned to close as early as November, five months ahead of schedule.
Under Proposition 98, California has a minimum funding guarantee for schools and community colleges. Newsom is proposing an unusual maneuver to go back and lower the funding requirement for 2022-23 to reflect the lower-than-expected state revenues that came in late last year. The change could ultimately reduce funding for schools by tens of billions of dollars in future years and launch a monumental fight over education funding at the state Capitol.
Newsom’s plan proposes cuts that could be felt by California’s college and preschool students. He wants to reduce the Middle Class Scholarship program by $510 million and cut $550 million from a program that helps build and upgrade facilities for children in preschool and transitional kindergarten over the next two budget years.
Newsom called a decision to pause $1.4 billion planned to expand child care availability over two years “difficult,” but a necessary trade off in order to pay child care workers higher wages.
Sacramento Bureau Chief Laurel Rosenhall contributed to this report.
Politics
Video: Federal Agent Fatally Shoots Woman in Minneapolis
new video loaded: Federal Agent Fatally Shoots Woman in Minneapolis
transcript
transcript
Federal Agent Fatally Shoots Woman in Minneapolis
Federal officials claimed that the 37-year-old woman was trying to kill agents with a car in Minneapolis, while city and state officials disputed their account.
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“No! No! Shame — shame! What did you do?” “It was an act of domestic terrorism, what happened. It was — our ICE officers were out in an enforcement action. They got stuck in the snow because of the adverse weather that is in Minneapolis. They were attempting to push out their vehicle, and a woman attacked them and those surrounding them, and attempted to run them over and ram them with her vehicle. An officer of ours acted quickly and defensively shot to protect himself and the people around him.” “We’ve been warning for weeks that the Trump administration’s dangerous, sensationalized operations are a threat to our public safety.” “They are already trying to spin this as an action of self-defense. Having seen the video of myself, I want to tell everybody directly: That is bullshit. This was an agent recklessly using power that resulted in somebody dying — getting killed.” “Get out of the fucking car.” “No! No! Shame! [gunshots] Shame! Oh, my fucking God. What the fuck? What the fuck? You just fucking — what the fuck did you do?” “There is nothing to indicate that this woman was the target of any law enforcement investigation or activity. This woman was in her car, and it appears, then blocking the street because of the presence of federal law enforcement, which is obviously something that has been happening not just in Minneapolis, but around the country.”
By Jamie Leventhal and Devon Lum
January 7, 2026
Politics
Trump greenlights Russian sanctions bill, paving way for 500% tariff on countries supporting Moscow: Graham
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Sen. Lindsey Graham announced Wednesday that President Donald Trump has approved a Russian sanctions bill designed to pressure Moscow to end its war with Ukraine.
Graham revealed the development in a post on X, describing it as a pivotal shift in the U.S. approach to the Russia-Ukraine conflict.
“After a very productive meeting today with President Trump on a variety of issues, he greenlit the bipartisan Russia sanctions bill that I have been working on for months with Senator Blumenthal and many others,” Graham said.
“This will be well-timed, as Ukraine is making concessions for peace and Putin is all talk, continuing to kill the innocent.”
TRUMP TOUTS ‘TREMENDOUS PROGRESS’ BUT SAYS HE’LL MEET PUTIN AND ZELENSKYY ‘ONLY WHEN’ PEACE DEAL IS FINAL
Sen. Lindsey Graham, R-S.C., speaks during a news conference at the U.S. Capitol July 31, 2024, in Washington, D.C. (Kent Nishimura/Getty Images)
According to the Sanctioning Russia Act of 2025, the bipartisan legislation is designed to grant Trump sweeping, almost unprecedented, authority to economically isolate Russia and penalize major global economies that continue to trade with Moscow and finance its war against Ukraine.
Most notably, the bill would require the United States to impose a 500% tariff on all goods imported from any country that continues to purchase Russian oil, petroleum products or uranium. The measure would effectively squeeze Russia financially while deterring foreign governments from undermining U.S. sanctions.
TRUMP CASTS MADURO’S OUSTER AS ‘SMART’ MOVE AS RUSSIA, CHINA ENTER THE FRAY
President Donald Trump speaks during a meeting at the White House Oct. 14, 2025, in Washington, D.C. (Kevin Dietsch/Getty Images)
“This bill will allow President Trump to punish those countries who buy cheap Russian oil fueling Putin’s war machine,” Graham said.
“This bill would give President Trump tremendous leverage against countries like China, India and Brazil to incentivize them to stop buying the cheap Russian oil that provides the financing for Putin’s bloodbath against Ukraine.”
Graham said voting could take place as early as next week and that he is looking forward to a strong bipartisan vote.
US MILITARY SEIZES TWO SANCTIONED TANKERS IN ATLANTIC OCEAN
The vessel tanker Bella 1 was spotted in Singapore Strait after U.S. officials say the U.S. Coast Guard pursued an oil tanker in international waters near Venezuela. (Hakon Rimmereid/via Reuters)
The move on the Russian sanctions bill follows another sharp escalation in America’s clampdown on Moscow. Earlier Wednesday, U.S. forces reportedly seized an oil tanker attempting to transport sanctioned Venezuelan oil to Russia.
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Graham publicly celebrated the seizure in another post on X, describing it as part of a broader winning streak of U.S. intervention aimed at Venezuela and Cuba.
In the post, he also took aim at critics such as Sen. Rand Paul, who has opposed the bill, arguing that it would damage America’s trade relations with much of the world.
Fox News Digital reached out to the White House for comment.
Politics
ICE officer kills a Minneapolis driver in a deadly start to Trump’s latest immigration operation
An Immigration and Customs Enforcement officer shot and killed a Minneapolis driver on Wednesday during the Trump administration’s latest crackdown on a major American city — a shooting that federal officials said was an act of self-defense but that the mayor described as reckless and unnecessary.
The 37-year-old woman was shot in front of a family member during a traffic stop in a snowy residential neighborhood south of downtown Minneapolis, just a few blocks from some of the oldest immigrant markets and about a mile from where George Floyd was killed by police in 2020. Her killing quickly drew a crowd of hundreds of angry protesters.
Homeland Security Secretary Kristi Noem, while visiting Texas, described the incident as an “act of domestic terrorism” carried out against ICE officers by a woman who “attempted to run them over and rammed them with her vehicle. An officer of ours acted quickly and defensively, shot, to protect himself and the people around him.”
Emergency medical technicians carry a person on a stretcher at the scene of a shooting in Minneapolis on Wednesday.
(Ellen Schmidt / Associated Press)
But Minneapolis Mayor Jacob Frey blasted that characterization as “garbage” and criticized the federal deployment of more than 2,000 officers to the Twin Cities of Minneapolis and St. Paul as part of the immigration crackdown.
“What they are doing is not to provide safety in America. What they are doing is causing chaos and distrust,” Frey said, calling on the immigration agents to leave. “They’re ripping families apart. They’re sowing chaos on our streets, and in this case, quite literally killing people.
“They are already trying to spin this as an action of self-defense. Having seen the video myself, I wanna tell everybody directly, that is bullshit,” the mayor said.
Frey said he had a message for ICE: “Get the f— out of Minneapolis.”
Police tape surrounds a vehicle believed to be involved in a shooting by an ICE agent on Wednesday.
(Stephen Maturen / Getty Images)
A shooting caught on video
Videos taken by bystanders with different vantage points and posted to social media show an officer approaching an SUV stopped across the middle of the road, demanding the driver open the door and grabbing the handle. The Honda Pilot begins to pull forward, and a different ICE officer standing in front of the vehicle pulls his weapon and immediately fires at least two shots into the vehicle at close range, jumping back as the vehicle moves toward him.
It was not clear from the videos whether the vehicle made contact with the officer. The SUV then sped into two cars parked on a curb nearby before crashing to a stop. Witnesses screamed obscenities, expressing shock at what they’d seen.
After the shooting, emergency medical technicians tried to administer aid to the woman.
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“She was driving away and they killed her,” said resident Lynette Reini-Grandell, who was outdoors recording video on her phone.
The shooting marked a dramatic escalation of the latest in a series of immigration enforcement operations in major cities under the Trump administration. The death of the Minneapolis driver, whose name wasn’t immediately released, was at least the fifth linked to immigration crackdowns.
The Twin Cities have been on edge since DHS announced Tuesday that it had launched the operation, which is at least partly tied to allegations of fraud involving Somali residents. Noem confirmed Wednesday that DHS had deployed more than 2,000 officers to the area and said they had already made “hundreds and hundreds” of arrests.
Protesters react after being hit with chemical spray at the scene of a shooting in Minneapolis.
(Alex Kormann / Minnesota Star Tribune via AP)
A large throng of protesters gathered at the scene after the shooting, where they vented their anger at the local and federal officers who were there, including Gregory Bovino, a senior U.S. Customs and Border Patrol official who has been the face of crackdowns in Los Angeles, Chicago and elsewhere.
In a scene that hearkened back to the Los Angeles and Chicago crackdowns, bystanders heckled the officers, chanting “Shame! Shame! Shame!” and “ICE out of Minnesota,” and blew whistles that have become ubiquitous during the operations.
Shootings involving drivers during immigration actions have been an issue since the raids began in Southern California.
In August, masked U.S. Customs and Border Protection agents in San Bernardino opened fire on a truck they had stopped on a street. A video showed an agent demanding the driver roll down his window. When he refused, an agent shattered the window, the truck drove off and gunfire rang out.
When the driver got home, the family reported the incident to police. Federal authorities alleged an agent had been injured when the driver tried to “run them down.” But witnesses and video disputed some aspects of the official account.
In October, a well-known TikTok figure was shot by an agent during a standoff in Los Angeles. The U.S. attorney said the man rammed his vehicle into the law enforcement vehicles in front of and behind him, “spun the tires, spewing smoke and debris into the air, causing the car to fishtail and causing agents to worry for their safety.” But videos showed a much more complicated view of the situation. A federal judge recently dismissed the case against the driver, finding that he had been denied access to counsel while in immigration detention.
Governor calls for calm
In Minnesota on Wednesday, Gov. Tim Walz said he was prepared to deploy the National Guard if necessary. He said a family member of the driver was there to witness the killing, which he described as “predictable” and “avoidable.” He also said that, like many, he was outraged by the shooting but called on people to keep protests peaceful.
“They want a show. We can’t give it to them. We cannot,” the governor said during a news conference. “If you protest and express your 1st Amendment rights, please do so peacefully, as you always do. We can’t give them what they want.”
Minneapolis Police Chief Brian O’Hara briefly described the shooting to reporters but, unlike federal officials, gave no indication that the driver was trying to harm anyone. He said she had been shot in the head.
“This woman was in her vehicle and was blocking the roadway on Portland Avenue. … At some point a federal law enforcement officer approached her on foot and the vehicle began to drive off,” the chief said. “At least two shots were fired. The vehicle then crashed on the side of the roadway.”
There were calls on social media to prosecute the officer who shot the driver. Commissioner Bob Jacobson of the Minnesota Department of Public Safety said state authorities would investigate the shooting with federal authorities.
“Keep in mind that this is an investigation that is also in its infancy. So any speculation about what has happened would be just that,” Jacobson told reporters.
The shooting happened in the district of Democratic Rep. Ilhan Omar, who called it “state violence,” not law enforcement.
For nearly a year, migrant rights advocates and neighborhood activists across the Twin Cities have been preparing to mobilize in the event of an immigration enforcement surge. From houses of worship to mobile home parks, they have set up active online networks, scanned license plates for possible federal vehicles and bought whistles and other noise-making devices to alert neighborhoods of any enforcement presence.
Sullivan and Dell’Orto write for the Associated Press. Dell’Orto reported from St. Paul, Minn. AP writers Steve Karnowski in Minneapolis, Ed White in Detroit, Valerie Gonzalez in Brownsville, Texas, and Mark Vancleave in Las Vegas and Times staff contributed to this report.
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