California
California officials detail Trump funding freeze 'chaos,' warn another could cripple state
Maricela Ramirez was at an education conference in Washington, D.C., at the end of January when she and other attendees heard the startling news: Federal funding for Head Start programs, which provide early-learning and nutritional support for low-income children nationwide, had been frozen.
Ramirez, chief education officer for the Los Angeles County Office of Education, quickly contacted colleagues and realized it was true. They had tried to make a routine withdrawal of millions of dollars in funding the day prior, but it hadn’t arrived overnight as expected.
Ramirez said “stress and panic” quickly began to set in, both in her office and among the conference attendees all around her.
“Our team had to assess whether LACOE would have to shut down its programs and to determine where LACOE could find funding to pay its employees if the system continued to be down,” Ramirez recently wrote in a legal filing. Pauses in federal funding could disrupt mental health services, counseling, health screening and nutritional support for up to 8,000 children, she added.
Ramirez’s account of the fallout and ongoing fear caused by the Trump administration’s sudden decision to halt billions of dollars in federal financial aid last month was one of more than 125 declarations of harm filed as part of a multi-state lawsuit challenging the freeze in U.S. District Court. At least 16 declarations came from California.
Together, the declarations paint a picture of alarm and chaos in the hours and days after the White House budget office announced the freeze in a Jan. 27 memo, and of lingering fear and uncertainty as the Trump administration continues to fight for such budget authority in court.
While the administration rescinded the Office of Management and Budget memo two days after it was issued amid substantial public uproar, some funds remained frozen in the days that followed. And in response to the states’ lawsuit, the Trump administration argued that Trump and OMB “plainly have authority to direct agencies to fully implement the President’s agenda.”
U.S. District Judge John J. McConnell Jr. ordered Jan. 31 that the freeze be temporarily lifted while the litigation plays out. He further blocked it on Feb. 10, in part on the strength of the declarations — writing that the administration’s “categorical and sweeping freeze” was “likely unconstitutional and has caused and continues to cause irreparable harm to a vast portion of this country.”
The Trump administration accused McConnell of “intolerable judicial overreach,” but has backed off an appeal as the litigation continues.
In one declaration, Mary Halterman, an assistant program budget manager at the California Department of Finance, wrote that federal funding “typically comprises about a third” of the state’s budget. In fiscal 2024-25, the state’s $500-billion budget anticipates $168 billion in federal funds, not including funding for the state’s public college and university system.
The largest chunk, some $107.5 billion, is for payments under Medi-Cal, California’s version of Medicaid, which provides healthcare to nearly 15 million low-income Californians, or more than a third of the state’s population, Halterman wrote.
That includes about 5 million children — more than half of the kids in the state.
Congress also has allocated California $63 billion under the Infrastructure Investment and Jobs Act of 2021, and nearly $5 billion under the Inflation Reduction Act of 2022, “for programs related to public transportation, roads and bridges, water infrastructure, and broadband infrastructure, among others,” Halterman wrote.
The Office of Management and Budget’s funding freeze memo immediately created “confusion and doubt” as to California’s ability to continue providing such services, Halterman wrote. And that uncertainty was “ongoing,” she wrote.
Sen. Bernie Sanders (I-Vt.) protests against the policies of President Trump and Elon Musk at the U.S. Capitol on Wednesday.
(Jose Luis Magana / Associated Press)
“Without knowing whether and when federal dollars will be disbursed, state agencies may not be able to outlay those funds, causing immediate pause or potential termination of government services in some sectors,” Halterman wrote.
The freeze set off similar alarm bells among state officials overseeing Medi-Cal and other federally funded health programs, especially after they realized Jan. 28 that a $200-million payment hadn’t been received, wrote Lindy Harrington, an assistant state Medicaid director.
The department “managed to continue operations” that day, but “did not have sufficient funds to meet future financial obligations,” she wrote, and she now fears the “budgetary chaos” of a longer disruption — under which “health care services could be drastically curtailed or even cease altogether.”
California officials overseeing other public health and safety programs raised similar fears after being locked out of funding for a range of environmental and infrastructure projects, including to clean up contaminated industrial sites, monitor air quality in low-income and disadvantaged communities and reduce dangerous and potentially deadly pollution along the busy freight corridor between Los Angeles and the Inland Empire.
Eric Lau, acting deputy director of the division of administrative services at the California State Water Resources Control Board, said his agency since 2021 has received hundreds of millions of dollars in federal grants for projects related to safe drinking water and overflow and stormwater management.
About 8 a.m. on Jan. 28, Lau staff found only 31 of the board’s 45 grants were visible in its federal payment system, and searches for the 14 others produced an alarming message: “ERROR 839: No accounts found matching criteria.”
It took days for some of the accounts to come back online, Lau wrote, warning that longer disruptions could be catastrophic.
“The design, construction, and maintenance of critical water facilities will be stalled, risking continued water contamination, supply disruptions and severe threats to public health and the environment,” he wrote. “Ultimately, Californians’ right to safe, clean, affordable, and accessible water will be threatened.”
Federal funding also was temporarily blocked for researchers at California State University and University of California campuses, homeowners and contractors retrofitting homes to be more energy efficient, regulators overseeing workplace safety violations and job search assistance, career services, and training programs at dozens of local workforce development centers statewide.
Both state and local officials warned that any cuts to federal funding that aren’t carefully considered by Congress and articulated in advance — giving localities time to draft new budgets of their own — are deeply unwise and potentially dangerous.
California Supt. of Public Instruction Tony Thurmond wrote that the state receives $7.9 billion in annual funding from the U.S. Department of Education, which supports 5.8 million students. The temporary freeze on funding last month did not disrupt school programs, in part because the state did not have any major draw on federal funds scheduled.
However, any interference to those funds moving forward would “do immeasurable harm” to educators and students, particularly low-income students and students with disabilities, he wrote.
For the current school year, the state is receiving $1.5 billion in direct funding for special education students, Thurmond wrote. In addition, public schools draw heavily on Medi-Cal — to the tune of millions of dollars per school per year — to provide additional therapies and mental and physical health services, Thurmond wrote.
California schools also receive huge amounts of federal funding under the Every Student Succeeds Act. This fiscal year, California was allocated $2 billion in ESSA funds to “meet the needs of some of its most vulnerable students,” and to ensure that they meet certain proficiency standards, Thurmond wrote. Among other things, it was allocated $120 million for the education of “migratory children,” $232 million to strengthen the quality and effectiveness of school staff, $157 million for English language acquisition and enhancement programs, and $152 million for improving school conditions and technology, Thurmond wrote.
California schools also spend $40 million to $50 million in federal funds per week to feed students through nutrition programs.
Another freeze “could cause layoffs, suspension of services to needy students and disruption of student learning supports,” Thurmond wrote.
State programs completely unrelated to education would also be put at risk, he wrote, given that many education programs are mandatory under state and federal law and the state would be forced to shuffle its resources around to provide them no matter what.
Mason Matthews, chief budget and financial officer in L.A. County Chief Executive Fesia Davenport’s office, shared those wider budget concerns. The county is the most populated in the nation with about 10 million residents and a budget of about $49 billion, with an estimated $5.3 billion in federal funding.
Matthews wrote that the “exact ramifications” of the recent pause on federal funding “remain unknown,” but the risks posed by another freeze are high — threatening “a range of vital commitments to [county] residents including, but not limited to, healthcare, public safety operations, public benefits, workforce development, foster care, child support, housing and emergency management.”
One affected group would be needy families who receive cash assistance, employment services and child care through the state’s CalWORKS program, through which the county receives more than $2 billion in federal funds annually, Matthews wrote. Also at risk would be abused children, he wrote, as the county’s Department of Children and Family Services relies on $604.5 million in federal funding annually to investigate abuse and neglect and provide “supportive and therapeutic services” for such children.
More broadly, because federal funding amounts to about 10% of the county budget, another freeze would cause “significant budget and administrative burdens” for the county and “irreparably harm the day-to-day lives” of all county residents, Matthews wrote. That’s especially true given the budget strain already being felt from the devastating wildfires that incinerated parts of the county last month.
“The withholding of federal funding, coupled with the ambiguity and uncertainty regarding which funds will be withheld and for how long, will cause irreparable harm and jeopardize critical response and recovery efforts,” Matthews wrote. “Though the County will take appropriate actions to respond to the LA County Fires, without reimbursement from federal funding, other County crucial programs may be impacted such as housing options for homeless families and veterans.”
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.
California
California DOJ cracks down on hospice fraud. Takes shot at Trump Administration
From one crackdown on hospice fraud to another.
A few weeks ago, the FBI arrested multiple people in Southern California that were accused of defrauding the government for millions of dollars.
In a more recent announcement last Thursday, California’s State Attorney General Rob Bonta held a press conference to announce a fraud bust of their own.
“Operation Skip Trace uncovered and ended a hospice fraud scheme that defrauded Medi-Cal of $267 million,” Bonta said. “So just to be clear, a quarter billion dollars over funds that are paid for by California taxpayers, funds that are meant to provide care to Californians in need. It is unacceptable. It is illegal and we will not stand for it.”
The operation saw a total of 21 suspects charged as a result and dismantled a major hospice fraud scheme, with two handguns and over $750 thousand in cash seized as well.
According to the state’s attorney general, this is just one of the many cases over the years the state has cracked down on.
“This is just the latest example of the California DOJ’s longstanding ongoing and successful efforts to combat hospice and medical fraud,” Bonta said. “We have been doing this work for years. We’ve been doing it successfully before certain people in this country decided to think about it for the first time. We will continue to do this work. Heads down, sleeves rolled up, important investigative work, prosecutorial work.”
He added to that by taking a shot at the Trump Administration’s latest fraud operations.
“While healthcare fraud might be President Trump’s shiny new political talking point, the California DOJ has been going after healthcare fraud since 1979,” Bonta said. “For decades, Trump is late to the party. Protecting taxpayer dollars and protecting programs sick and vulnerable Californians rely on have been our priority for nearly five decades.”
Governor Gavin Newsom also spoke out about this latest crackdown while taking a shot of his own at President Trump.
In a post to “X” the Governor’s Press Office wrote in part quote…
“California has been cracking down on hospice fraud long before Trump gutted oversight and pardoned the architect of the biggest health care fraud scheme in U.S. history.”
State Republicans have responded to this latest announcement from Attorney General Bonta, calling for a special session to demand accountability from the Governor on widespread fraud.
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