California
California has an income gap problem
Income inequality in California has reached one of the highest levels in the nation, with the wealthiest families earning significantly more than those at the bottom, according to the U.S. Census Bureau’s Current Population Survey (CPS) data for 2023.
Why It Matters
California’s cost of living is among the highest in the United States, driven significantly by elevated housing expenses. In 2017, the median home price in California was more than 2.5 times the national median, with coastal urban areas experiencing even higher prices.
As a result, less than a third of Californians can afford a median-priced home, and homelessness per capita is the third highest in the nation. This high cost of living, particularly in housing, exacerbates the state’s growing income gap. While the wealthiest residents continue to accumulate significant wealth, the state’s low- and middle-income families face increasing financial pressure.
What To Know
According to 2023 CPS data, California’s wealth divide has reached one of the highest levels in the nation. In 2023, the highest-earning families earned an average of $336,000, which is 11 times more than the lowest-earning families, who earned just $30,000.
Only Washington, D.C., and Louisiana reported wider income gaps.
Income disparity has grown significantly in California since 1980, when the top earners made seven times more than those at the bottom. Over the past four decades, the incomes of the highest earners have increased by 68 percent, while the incomes of the lowest earners have grown by 10 percent.
The divide is also widening between high- and middle-income earners, with top-income families now making three times more than the median income of $114,000, compared to twice as much in 1980.
California’s income gap is strongly linked to education levels, with families of college graduates earning significantly more than those without degrees.
Since 1980, median income has increased by 40 percent for families where at least one member holds a four-year degree, while it has declined by 9 percent for families without a college graduate. On average, families with a degree earn $2.36 for every $1 earned by families without one.
In recent years, however, the gap has narrowed slightly. Since 2016, median incomes for families without high school diplomas have grown by 17 percent, compared to 6 percent for those with college degrees. From 2020 to 2023, incomes for non-high school graduates rose 7 percent, while incomes for college graduates increased by just 2 percent.
Income disparities are also sharply divided along racial and ethnic lines. Black and Latino families, who make up 44 percent of California’s population, represent 55 percent of the lowest-income families but only 12 percent of the highest-income households. In contrast, white and Asian families make up 40 percent of the lowest earners but 83 percent of the highest-income households.
On average, for every $1 earned by white families, Asian families earn $0.94, Black families earn $0.63, and Latino families earn $0.52.
Increasing income inequality in California is occurring at the same time that the number of people in the state living below the poverty line is growing.
California’s poverty rate increased from 11.7 percent in 2021 to 13.2 percent in early 2023, with about 5 million residents living below the poverty line, according to the Public Policy Institute of California’s California Poverty Measure. Child poverty saw an even sharper rise, jumping from 9 percent to 13.8 percent in the same period. Despite this, poverty remains lower than pre-pandemic levels, when it stood at 16.4 percent in 2019.
Nonetheless, nearly one-third of Californians are now either poor or near poor, with 31.1 percent living close to the poverty line. Poverty rates are highest among Latinos (16.9 percent), seniors (15.2 percent), and foreign-born residents (17.6 percent), particularly undocumented immigrants (29.6 percent). Education also plays a key role: while only 6.4 percent of college graduates live in poverty, the rate is 22.3 percent for those without a high school diploma.
Most poor Californians are part of working families, with 76 percent living in households where at least one adult is employed. However, full-time workers face significantly lower poverty rates (5.3 percent) compared to part-time workers (18.5 percent).
Mark Lennihan/AP
What People Are Saying
Tess Thorman, research associate at the Public Policy Institute of California, told Newsweek: “When we compare trends in California to the rest of the country (so, not looking at individual states, but at all other states combined), inequality in California has really surged during recessions on a scale that it has not in the rest of the country.
“Overall, California’s long-term growth in inequality has been characterized by top incomes rising more quickly and consistently than low incomes. Top incomes have rebounded relatively quickly from recessions, while low incomes have seen larger declines and then taken longer to return to their pre-recession levels.
“A number of factors that are specific to California likely play into this variation, including the state’s high cost of living (including housing), a tech- and finance-heavy economy, and immigration patterns.”
What Happens Next
Data for 2024 has not yet been released. Thorman told Newsweek that it is “difficult to predict” if income inequality will continue to grow in California due to “technological advancements, international trade, and institutional changes.”
“These elements shape jobs and earnings, making future trends in inequality uncertain. Other factors like economic growth and education can also shape inequality and is hard to know what will be happening on those fronts,” Thorman added.
California
California regulators kill charity fireworks for America’s 250th, sparking outrage
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As the nation prepares for its 250th Independence Day celebration, a decades-long California Fourth of July fireworks tradition that has raised millions for local children’s programs is going dark this year after the California Coastal Commission rejected a final effort to keep it alive, citing environmental concerns to protect the bay.
“We’ve raised over the past 14 years $2 million for kids programs here in Long Beach,” event organizer John Morris told Fox News Digital, adding the July 3 event is fully funded by the local community.
“This community pays for everything — everything. City fees, and the city doesn’t give us a break. We pay $20,000 to the city for police and fire, which I’m fine with, because there’s 100,000 people enjoying the fireworks,” said Morris, a Long Beach resident and business owner.
Morris, who owns the Boathouse on the Bay restaurant, had planned a scaled-up fireworks display this year to mark America’s 250th Independence Day.
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Long Beach residents have enjoyed the fireworks organized by John Morris for over a decade. (Scott Varley/MediaNews Group/Torrance Daily Breeze via Getty Images)
In January, Coastal Commission staff rejected the proposal, and last week commissioners unanimously upheld that decision despite an appeal backed by local, state and federal officials.
Regulators warned Morris last year that 2025 would likely be the final year for fireworks at the event, as they continue pushing organizers to switch to drone shows they say are more environmentally friendly.
The decision stands in contrast to other approvals by the commission, including a permit granted to SeaWorld allowing up to 40 nights of fireworks.
“They get 40 nights in Mission Bay. All I’m asking for is 20 minutes — it doesn’t make any sense,” Morris said.
Morris, 78, also pushed back on the environmental concerns cited by the commission, pointing to years of testing around the event.
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Due to the lack of fireworks, Morris has decided to cancel the July 3rd celebration.
“We’ve had 10 years of environmental studies,” Morris said. “We test the water before and after the fireworks and send a robotic camera into the bay to check for debris — there’s never been any. It’s been spotless.
“We’ve also had eight years of bird reports to make sure we’re not harming wildlife. We’ve never had an issue. We’ve never been written up one time. So what is it really about?”
Joshua Smith, a spokesman for the California Coastal Commission, told Fox News Digital that permits are determined on a case-by-case basis, citing environmental concerns to “protect the bay.”
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Organizer John Morris said environmental studies are regularly conducted to measure the impact of the fireworks show on the bay. (Allen J. Schaben/Los Angeles Times via Getty Images)
Smith said Morris was approved for a permit to hold a drone show in lieu of fireworks. Morris told Fox News Digital such a show would cost about $200,000 — roughly four times more than traditional fireworks.
Smith confirmed that SeaWorld received a permit allowing 40 nights of fireworks. When pressed on the discrepancy, he reiterated that decisions are made individually and declined to provide further details.
Morris said the loss of the fireworks show will be felt across the community, from local businesses to families who have made the event an annual tradition.
California
Billionaire Steyer’s spending binge dwarfs rival campaigns in California governor’s race
LOS ANGELES (AP) — In the wide-open race for California governor, billionaire Tom Steyer is on a spending binge.
The hedge fund manager-turned-liberal activist is using his personal fortune to saturate TV screens and mobile phones with advertising, while his competitors accuse him of trying to use his vast wealth to buy the state’s most powerful job.
Steyer’s ads — in which he promises to bring down household costs or rails against federal immigration raids — appear inescapable at times in heavily Democratic Los Angeles, the state’s largest media market. Data compiled by advertising tracker AdImpact show Steyer has spent or booked over $115 million in ads for broadcast TV, cable and radio — nearly 30 times the amount of his nearest Democratic rival.
If he makes it through the June 2 primary election, Steyer could easily eclipse the 2010 record set by Republican Meg Whitman, who spent $178.5 million in a losing bid for governor, much of it her own money. At the time, it was the costliest campaign for statewide office in the nation’s history.
Even when ad buys from all his major competitors are combined, along with ad purchases by independent committees supporting candidates, Steyer is outspending the field by tens of millions of dollars.
“Billionaire money is flooding our state in an attempt to buy this election,” former U.S. Rep. Katie Porter, one of Steyer’s chief rivals, warned her supporters this month.
Mail-in ballots are set to go out to voters next month. Steyer is among a crowd of candidates hoping to seize a spotlight after former Democratic U.S. Rep. Eric Swalwell’s dramatic departure from the race following sexual assault allegations that he denies.
But while Steyer has ticked up in polling amid his spending splurge, he has not broken away from the field, leaving some wondering if he’s getting value for his dollars.
“If your first round of ads doesn’t move you dramatically (in the polls), the third, fourth, fifth, six, seventh and eighth rounds won’t either,” said veteran Democratic strategist Bill Carrick, who for years advised the late Democratic U.S. Sen. Dianne Feinstein. “There is something inherently holding Steyer back.”
In recent prior campaigns for governor, at this stage a leading candidate was taking control of the race. This year, voters appear to be shrugging at a contest that lacks a star candidate among seven leading Democrats and two Republicans.
“Somehow the campaign is frozen,” Carrick added.
History shows that money doesn’t always translate into votes.
Billionaire developer Rick Caruso spent over $100 million in 2022 in his bid to become Los Angeles mayor, much of it his own money, but he was handily defeated by Mayor Karen Bass, who spent a fraction of Caruso’s total. Billionaire former New York City Mayor Michael Bloomberg spent more than $1 billion of his own money on his 2020 presidential bid before dropping out. And Steyer’s money was unable to lift him into contention in the 2020 presidential contest, when he dropped out early in the year after a poor finish in the South Carolina primary.
Steyer has never held elected office.
In a 2019 interview with The Associated Press, Steyer was asked what he would say to people who think he’s trying to buy the presidency.
“I don’t think that’s possible,” Steyer said at the time, before adding, “I’m never going to apologize for succeeding in business. That’s America, right?”
His campaign did not respond directly when asked about similar criticism facing his run for governor.
“Tom now stands as the only Democrat with the grassroots energy, institutional backing and resources to advance to the general election,” spokesperson Kevin Liao said in a statement.
The governor’s race was recently reordered by two developments: Swalwell, a leading Democrat, abruptly withdrew from the race then resigned from Congress, following sexual assault allegations. Meanwhile, President Donald Trump endorsed conservative commentator Steve Hilton.
Still, there is no clear leader.
Polling in late March and early April by the nonpartisan Public Policy Institute of California found a cluster of candidates in close competition: Democrats Steyer and Porter, Republicans Hilton and Chad Bianco, and Swalwell. Other candidates were trailing. The polling was conducted before Swalwell withdrew.
Democrats have feared the party’s large number of candidates could lead to them getting shut out of the general election in November. That’s because California has a primary system in which only the top two vote-getters advance to the general election, regardless of party.
Leading Democrats are all claiming to have picked up support since Swalwell’s exit. Steyer nabbed one plum endorsement, when the influential California Teachers Association, which previously backed Swalwell, recommended him.
In his ads, Steyer promises to “abolish” U.S. Immigration and Customs Enforcement, which has been staging raids across California. In another, he laments the state’s punishing cost of housing, “Everybody needs an affordable place to live,” he says.
California
Tory Lanez Sues California Prison System for $100 Million Over Stabbing
Rapper was stabbed 16 times by fellow inmate in May 2025 while 10-year sentence in Megan Thee Stallion shooting case
Tory Lanez has filed a $100 million lawsuit against the California Department of Corrections stemming from a May 2025 incident where the rapper was stabbed in prison.
Lanez — born Daystar Peterson and currently serving a 10-year sentence after being found guilty in the Megan Thee Stallion shooting case — also sued the warden and guards at the California Correctional Institute in Tehachapi, where the rapper was stabbed 16 times in an “unprovoked life-threatening attack” by another inmate, the lawsuit states.
Peterson was hospitalized following the May 2025 incident, suffering a collapsed lung among stab wounds to his back, torso, and head.
According to the Associated Press, the lawsuit criticized the Department of Corrections for housing Peterson with fellow inmate and alleged attacker Santino Casio, who was serving a life sentence for second-degree murder. “The choice to house Casio with Peterson was known or should have been a known danger,” the lawsuit said, adding that Tory Lanez’ “high-profile celebrity status” made him a target.
The lawsuit also said that prison guards were slow to respond to the shanking, and didn’t employ flash grenades or other measures to halt Casio’s attack.; Casio was not charged for stabbing Peterson, the Associated Press notes.
Lanez, who following his hospitalization was transferred to San Luis Obispo County’s California Men’s Colony, also alleges in the lawsuit that he never received his possessions from the California Correctional Institute in Tehachapi, including songbooks filled with lyrics to his unreleased music.
Lanez is serving a 10-year prison sentence for shooting Megan Thee Stallion in the foot during a confrontation in the summer of 2020. He was eventually convicted on several firearms charges, including assault with a firearm, in December 2022. In November 2025, his appeal was denied by a three-judge panel, and the 10-year sentence was upheld.
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