- Tariffs impact businesses in Rye Canyon differently
- Supreme Court may rule on Trump’s emergency tariffs soon
- Some businesses adapt, others struggle with tariff costs
California
SpaceX accuses California board of bias against Musk in decisions over rocket launches
SpaceX accused the California Coastal Commission of political bias after the board cited Elon Musk in denying a request to increase launches at Vandenberg Space Force Base.
Elon Musk’s SpaceX is suing a California commission and accusing members of political bias after the commission rejected the company’s request to allow for more rocket launches from a California air base.
The lawsuit was filed Tuesday in U.S. District Court in the Central District of California against the California Coastal Commission, which is tasked with planning and regulating the usage of land and water on the California coast.
Vandenberg Space Force Base in Santa Barbara, California, has been host to SpaceX Falcon 9 launches since 2013 and the company requested to increase launches to up to 50 a year from the current 36 allowed by the state.
In a recent meeting, the commission voted 6 to 4 to deny the request from SpaceX to increase the amount of launches. During the vote, commissioners quoted environmental concerns as part of their refusal to approve the request from SpaceX.
Following the meeting, Musk’s company filed a lawsuit that asked the court to prohibit the commission from regulating the company’s rocket launches, according to court documents.
SpaceX says it has been ‘punished’ for free speech
One of the arguments leveled by SpaceX’s attorneys claims that the decision from the commission is in retaliation for some comments from Musk – the company’s leader and largest stakeholder.
“But the Commission’s unconstitutional overreach does not stop at punishing SpaceX for constitutionally protected speech, beliefs, and practices that has no relevance to the proposed launches’ effects on coastal resources—the actual issue pending before the Commission,” the lawsuit said.
SpaceX’s lawyers also accused Commissioner Caryl Hart of bias, with the lawsuit quoting comments the commissioner made in a recent meeting.
“The concern is with SpaceX increasing its launches, not with the other companies increasing their launches . . . we’re dealing with a company . . . the head of which has aggressively injected himself into the Presidential race and made it clear what his point of view is,” the lawsuit said.
The lawsuit also quoted other members of the commission, namely Commissioner Gretchen Newsom, Commissioner Mike Wilson and Commissioner Dr. Justin Cummings calling their claims “irrelevant, biased concerns about Mr. Musk’s politics.”
SpaceX’s lawyers argued that these comments were politically biased against the company and the decision to deny their request for increased launches.
Musk has been increasingly involved with the right
In recent months, Musk has become a vocal supporter of conservative candidates and causes, voicing his support for former President Donald Trump’s campaign and even donating at least $75 million to the America PAC, which Musk helped found.
He also made an appearance at a recent Trump rally in Butler, Pennsylvania, the site of one of the assassination attempts against Trump.
“The true test of someone’s character is how they behave under fire. We had one president who could not climb a flight of stairs and another who is fist pumping after getting shot,” Musk said during his speech, chanting, “Fight, fight, fight.”
Fernando Cervantes Jr. is a trending news reporter for USA TODAY. Reach him at fernando.cervantes@gannett.com and follow him on X @fern_cerv_.
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California
500-pound bear evicted after living under California home for months
Watch massive bear evicted after from under home
A bear settled in underneath a California home, and BEAR League, a wildlife team, assisted in the animal’s removal.
A 500-plus-pound bear living underneath a residence in Southern California has departed the space it called home for months, according to the nonprofit that helped evict the large mammal.
BEAR League announced in a Facebook post on Jan. 8 that it helped remove the bear from Kenneth Johnson’s home after he reached out to the nonprofit. Johnson previously told the Los Angeles Times and KTLA that he found signs of something living under his home as early as April 2025, but he didn’t know what it was for sure until November, when a security camera caught the bear sneaking into a crawl space.
At an estimated weight of 500-plus pounds, the bear “barely fit into the crawlspace and caused extensive damage to the home’s heating ducts,” according to BEAR League. Concerned over a possibly damaged gas line, Johnson shut off his gas service just before Christmas, the nonprofit said.
BEAR League said it stepped in to evict the bear after earlier removal attempts by state wildlife officials were unsuccessful. Two first responders with the nonprofit traveled to Johnson’s home, where one of them crawled beneath the residence — “fully aware the bear was still there” — to get behind the animal and “encourage him to exit through the crawlspace opening,” according to Lake Tahoe-based the nonprofit.
The nonprofit also said it loaned Johnson electric unwelcome mats, which shock bears when they step on them, to give him time to make repairs and secure the crawlspace to prevent future visits.
“If you live in bear country, securing your crawlspace is essential. This time of year, BEAR League evicts multiple bears from under homes every day,” BEAR League said.
Kenneth Johnson creates GoFundMe to help with repairs
At the bottom of BEAR League’s social media post, the nonprofit linked to Johnson’s GoFundMe page, which he created to help cover repair costs.
According to Johnson’s fundraiser page, the 500-plus-pound bear dwelled underneath his home in Altadena for over a month, causing “tens of thousands of dollars in damage.”
“I’m in a situation I never imagined,” Johnson wrote on the fundraising page.
Johnson further explained his current employment situation, saying that right after surviving the Eaton fire in early January 2025, he lost his job, and shortly after that, the “bear began tearing into the structure of (his) home.”
“I have video footage of it twisting gas pipes, which created an extremely dangerous situation and forced me to shut off my utilities just to stay safe,” he continued.
The funds would also go toward making Johnson’s home “safe and livable again,” which includes paying for professional traps. As of Jan. 10, the GoFundMe has raised over $8,000; however, its goal is $13,000.
Jonathan Limehouse covers breaking and trending news for USA TODAY. Reach him at JLimehouse@gannett.com.
California
Gavin Newsom proposes $350B California budget — kicks the can on debt
California Gov. Gavin Newsom unveiled a record-high $350 billion state budget Friday that makes “historic” investments in areas like education — but kicks the can on paying down federal debt, foisting costs onto struggling employers.
Newsom’s budget incorporates a $43 billion windfall tied to the stock market that he touted in his State of the State speech Thursday, bringing his office’s estimated deficit down to $3 billion — the state’s fourth deficit in a row. The budget plows billions into maintaining education, health care, and other programs but ignores a $20 billion federal loan for Covid unemployment payments — a situation one legislator called “alarming.”
Ignoring the loan means small businesses are on the hook for the state’s debt, said state Sen. Roger Niello of Fair Oaks.
“We already have the highest unemployment in the nation and we’re putting this additional burden on our employers. It makes absolutely no sense,” Niello said.
The budget includes $662.2 million in mandatory interest payments, but there is no money going towards the principal.
Since July, the total balance has ballooned to $21.3 billion, and private employers in California pick up the tab under federal rules. Employers pay an $42 extra per employee this year and growing, per KCRA
Every state expect California has paid off the Covid-era loans.
“That is an alarming thing because [Newsom is] basically saying that businesses and employment are not a priority to him and that’s troubling,” Niello added.
At 5.5%, California’s unemployment rate was the highest in the country as of November.
Newsom’s $350 billion budget proposal is about $30 billion higher than this year’s budget, thanks largely to federal healthcare cuts that forced costs onto the state and mandatory set-asides in areas like education.
At a budget briefing Friday, Newsom’s finance director Joe Stephenshaw highlighted record spending on education— amounting to a record $27,418 per K-12 student, $5.3 billion for the University of California system, $15.4 billion to community colleges, and $1 billion to needy schools — along with $500 million towards local homelessness prevention, $195 million in new public safety spending, $3 billion for the state’s rainy day fund and $4 billion for school reserve funds.
The budget includes some cuts to climate-related spending and housing and homelessness, per Calmatters. And it does not include any direct funding for Prop. 36, the anti-crime measure supported by nearly 70% of voters in 2024 — a move Republicans blasted.
But even with Newsom’s unexpected windfall, analysts expect deficits to grow to as high as $35 billion in the coming years as expenditures outpace even optimistic revenue projections.
Newsom and the state Legislative Analyst create separate budget projections, and the governor’s has historically been far rosier on the revenue side. The legislative analyst projected a $18 billion deficit in the coming fiscal year, while the governor calculated $3 billion.
Under Newsom, the state’s general fund spending has increased by 77% partly owing to new programs spun up when the state was flush with cash, according to Republican legislators.
Newsom’s $350 billion budget — the last before he leaves office next year — does little to confront ballooning expenses, dumping the problem on the future governor and Legislature, according to Senate Minority Leader Brian Jones.
“This is more of the same from a lame-duck governor content on leaving the rest of us to pick up the financial pieces when he leaves office,” Jones said in a statement.
Democrats in the legislature were more measured in their responses.
“During these times of uncertainty, we must craft a responsible budget that prioritizes the safety and fiscal stability of California families,” said State Senate Leader Monique Limón in a statement.
Newsom and legislators will refine the budget in the coming months towards a final proposal in May.
One major unknown is how California will handle a loss of about $1.4 billion in funding due toTrump administration changes to low-income health care and food programs.
Last year, Newsom was force to scale back a controversial plan to provide Medicaid coverage for illegal immigrants after costs spiked, forcing California was forced to borrow $3.4 billion, Politico reported.
Newsom’s budget didn’t fully explain what would happen to immigrant health care under federal cuts, and Stephenshaw struggled to answer detailed questions from reporters — saying Newsom’s office was still awaiting guidance from the feds.
“As we work through the May revision, this is something we’ll be well aware of and we’ll make those decision at that time,” he said.
California
How Trump’s tariffs ricochet through a Southern California business park
VALENCIA, California, Jan 9 (Reuters) – America’s trade wars forced Robert Luna to hike prices on the rustic wooden Mexican furniture he sells from a crowded warehouse here, while down the street, Eddie Cole scrambled to design new products to make up for lost sales on his Chinese-made motorcycle accessories.
Farther down the block, Luis Ruiz curbed plans to add two imported molding machines to his small plastics factory.
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“I voted for him,” said Ruiz, CEO of Valencia Plastics, referring to President Donald Trump. “But I didn’t vote for this.”
All three businesses are nestled in the epitome of a globalized American economy: A lushly landscaped California business park called Rye Canyon. Tariffs are a hot topic here – but experiences vary as much as the businesses that fill the 3.1 million square feet of offices, warehouses, and factories.
Tenants include a company that provides specially equipped cars to film crews for movies and commercials, a dance school, and a company that sells Chinese-made LED lights. There’s even a Walmart Supercenter. Some have lost business while others have flourished under the tariff regime.
Rye Canyon is roughly an hour-and-a-half drive from the sprawling Ports of Los Angeles and Long Beach. And until now, it was a prime locale for globally connected businesses like these. But these days, sitting on the frontlines of global trade is precarious.
The average effective tariff rate on imports to the U.S. now stands at almost 17%–up from 2.5% before Trump took office and the highest level since 1935. Few countries have been spared from the onslaught, such as Cuba, but mainly because existing barriers make meaningful trade with them unlikely.
White House spokesman Kush Desai said President Trump was leveling the playing field for large and small businesses by addressing unfair trading practices through tariffs and reducing cumbersome regulations.
‘WE HAD TO GET CREATIVE’ TO OFFSET TRUMP’S TARIFFS
Rye Canyon’s tenants may receive some clarity soon. The U.S. Supreme Court could rule as early as Friday on the constitutionality of President Trump’s emergency tariffs. The U.S. has so far taken in nearly $150 billion under the International Emergency Economic Powers Act. If struck down, the administration may be forced to refund all or part of that to importers.
For some, the impact of tariffs was painful – but mercifully short. Harlan Kirschner, who imports about 30% of the beauty products he distributes to salons and retailers from an office here, said prices spiked during the first months of the Trump administration’s push to levy the taxes.
“It’s now baked into the cake,” he said. “The price increases went through when the tariffs were being done.” No one talks about those price increases any more, he said.
For Ruiz, the plastics manufacturer, the impact of tariffs is more drawn out. Valencia makes large-mouth containers for protein powders sold at health food stores across the U.S. and Canada. Before Trump’s trade war, Ruiz planned to add two machines costing over half a million dollars to allow him to churn out more containers and new sizes.
But the machines are made in China and tariffs suddenly made them unaffordable. He’s spent the last few months negotiating with the Chinese machine maker—settling on a plan that offsets the added tariff cost by substituting smaller machines and a discount based on his willingness to let the Chinese producer use his factory as an occasional showcase for their products.
“We had to get creative,” he said. “We can’t wait for (Trump) to leave. I’m not going to let the guy decide how we’re going to grow.”
‘I’M MAD AT HIM NOW’
To be sure, there are winners in these trade battles. Ruiz’s former next-door neighbor, Greg Waugh, said tariffs are helping his small padlock factory. He was already planning to move before the trade war erupted, as Rye Canyon wanted his space for the expansion of another larger tenant, a backlot repair shop for Universal Studios. But he’s now glad he moved into a much larger space about two miles away outside the park, because as his competitors announced price increases on imported locks, he’s started getting more inquiries from U.S. buyers looking to buy domestic.
“I think tariffs give us a cushion we need to finally grow and compete,” said Waugh, president and CEO of Pacific Lock.
For Cole, a former pro motorcycle racer turned entrepreneur, there have only been downsides to the new taxes.
He started his motorcycle accessories company in his garage in 1976 and built a factory in the area in the early 1980s. He later sold that business and – as many industries shifted to cheaper production from Asia – reestablished himself later as an importer of motorcycle gear with Chinese business partners, with an office and warehouse in Rye Canyon.
“Ninety-five percent of our products come from China,” he said. Cole estimates he’s paid “hundreds of thousands” in tariffs so far. He declined to disclose his sales.
Cole said he voted for Trump three times in a row, “but I’m mad at him now.”
Cole even wrote to the White House, asking for more consideration of how tariffs disrupt small businesses. He included a photo of a motorcycle stand the company had made for Eric Trump’s family, which has an interest in motorcycles.
“I said, ‘Look Donald, I’m sure there’s a lot of reasons you think tariffs are good for America,” but as a small business owner he doesn’t have the ability to suddenly shift production around the world to contain costs like big corporations. He’s created new products, such as branded tents, to make up for some of the business he’s lost in his traditional lines as prices spiked.
He pulls out his phone to show the response he got back from the White House, via email. “It’s a form letter,” he said, noting that it talks about how the taxes make sense.
Meanwhile, Robert Luna isn’t waiting to see if tariffs will go away or be refunded. His company, DeMejico, started by his Mexican immigrant parents, makes traditional-style furniture including hefty dining tables that sell for up to $8,000. He’s paying 25% tariffs on wooden furniture and 50% on steel accents like hinges, made in his own plant in Mexico. He’s raised prices on some items by 20%.
Fearing further price hikes from tariffs and other rising costs will continue to curb demand, he’s working with a Vietnamese producer on a new line of inexpensive furniture he can sell under a different brand name. Vietnam has tariffs, he said, but also a much lower cost base.
“My thing is mere survival,” he said, “that’s the goal.”
Reporting by Timothy Aeppel; additional reporting by David Lawder
Editing by Anna Driver and Dan Burns
Our Standards: The Thomson Reuters Trust Principles.
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