- 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
University of California official says system has $32 billion in holdings targeted by protesters
SACRAMENTO, Calif. (AP) — Investments in weapons manufacturers and a wide array of other companies by the University of California targeted by students protesting the Israel-Hamas war represent $32 billion – or nearly one-fifth – of the system’s overall assets, the system’s chief investment officer says.
UC Chief Investment Officer Jagdeep Singh Bachher unveiled the estimate Tuesday at the first public Board of Regents meeting since nationwide pro-Palestinian student protests began in April. The calculation was in response to a letter he received last month from the UC Divest Coalition, which is scrutinizing the system’s overall $175 billion in assets.
The group asked for the system to halt its investments in weapons manufacturers, the investment firms Blackstone and BlackRock, and two dozen companies across the entertainment, technology and beverage industries.
Bachher said that would apply to investments that include: $3.3 billion in holdings from groups with ties to weapons manufacturers; $12 billion in U.S. treasuries; $163 million in the investment firm BlackRock and $2.1 billion in bonds that BlackRock manages; $8.6 billion from Blackstone and $3.2 billion from the other 24 companies.
“We pride ourselves on a culture of transparency,” Bachher said, adding that it is important to listen to and engage with students.
The University of California system said last month it would not boycott or divest from Israel, and the regents have not indicated a change in position during this week’s meetings.
In 1986, the regents voted to divest $3.1 billion from companies doing business with South Africa’s apartheid government after more than a year of student protests. The system also dropped its investments in fossil fuels in 2020.
For weeks, students at campuses across the country have been protesting and setting up encampments at their universities to call on them to be more transparent about their investments and to divest from companies that financially support Israel. The demonstrations have led to disruptions, arrests and debates over free speech rights. Tensions between protesters, law enforcement and administration at the University of California, Los Angeles, have garnered some of the most attention.
The protests stem from the current Israel-Hamas conflict which started on Oct. 7 when Hamas launched an attack on southern Israel in which militants killed about 1,200 people, mostly civilians, and took roughly 250 hostages. Vowing to destroy Hamas, Israel launched an offensive in Gaza that has killed more than 34,500 Palestinians, around two-thirds of them women and children, according to the Health Ministry in the Hamas-ruled territory. Israeli strikes have devastated the enclave and displaced most of Gaza’s inhabitants.
In a letter provided to The Associated Press by the UC president’s office, the UC Divest Coalition — which is made up of anti-war student advocates across UC campuses — asked the university system to end any investments in “companies that perpetuate war or weapons manufacturing, including companies that give economic support to the state of Israel, and therefore perpetuate the ongoing occupation and genocide of the Palestinian people.”
“Investment in arms production is antithetical to the UC’s expressed values and the moral concerns of the students, workers, and faculty that the Regents represent,” the letter says.
The United Nation’s top court in January ruled that Israel must do all it can to prevent acts of genocide in Gaza but did not order an end to Israel’s military activities in the territories. The ruling was in response to a case brought by South Africa accusing Israel of committing genocide in violation of international law. Israel has denied that it is committing genocide.
The coalition did not immediately respond to requests for comment sent via email and social media on the letter and the $32 billion estimate.
At a meeting that lasted nearly two-and-a-half hours Tuesday, some students and faculty called for the system to divest from groups with ties to Israel, some faculty raised concerns about antisemitism and Islamophobia on campus, and regents asked investment committee members what it would mean to divest.
Holly Yu, a student studying ethnic studies at the University of California, Merced, urged officials to recognize that students are “expected to continue our everyday lives” as the death toll rises in Gaza.
“Please listen to the voices of your students and stand in solidarity with us by divesting immediately,” Yu said.
Regents said that the question of what it would mean to divest does not have a straight-forward answer.
“We need to be able to articulate to our students that are demanding divestment as to why it’s not so simple,” Regent Jose M. Hernandez said. “It’s not just a matter of selling a coupon and saying ‘okay, we don’t want this, so we’re going to invest in another company.’”
___
Austin is a corps member for The Associated Press/Report for America Statehouse News Initiative. Report for America is a nonprofit national service program that places journalists in local newsrooms to report on undercovered issues. Follow Austin on the social platform X: @sophieadanna
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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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