Office of Legislative Affairs - "The Friday Wrap-Up"

Legislative Analyst’s Office on the Governor’s Budget Proposal

The Legislative Analyst’s Office (LAO) has released its Overview of the Governor’s Budget, which is largely supportive of the administration’s estimates and proposals. Throughout the budget process, the LAO will continue to provide more detailed feedback on the administration’s proposals. Below is a snapshot of its analysis.

• The LAO confirms that the 2025-26 budget is roughly balanced in part due to decisions made last year. The main differences between the LAO’s estimates and the governor’s estimates:
  • Over the budget window - 2023-24, 2024-25, and 2025-26 - the administration’s estimates of revenues are $9 billion higher than the LAO’s, resulting in an additional $4.7 billion constitutional requirement for K-14 education.
  • The administration’s estimates of baseline spending are lower than the LAO’s by $600 million.
• The governor’s budget proposal includes three categories of discretionary proposals - those providing short-term budget savings, new spending, and setting the balance of the Special Fund for Economic Uncertainties (SFEU).
  • Proposals providing short-term budget savings:
    • Providing $1.6 billion less in funding for schools and community colleges than the estimated constitutional minimum funding level for 2024-25. This creates a settle-up obligation which will need to be paid in a future year.
    • Changing the rules about how taxable profits are determined for financial institutions, increasing revenues by $300 million annually.
    • Shifting $273 million in General Fund spending to the climate bond.
  • New discretionary proposals account for $570 million in new spending in 2025-26 and $300 million in ongoing spending. The largest are:
    • $42 million ongoing to restore an ongoing reduction to trial courts.
    • $60 million to provide additional grants under the Cal Competes program.
    • $5 million in 2025-26 and $84 million ongoing to expand the College Corps.
  • New tax expenditures proposed include a $420 million ongoing increase to the existing film tax credit and excluding some military retirement income from taxation. These proposals would reduce revenues by about $150 million in 2025-26, increasing to $300 million by 2028-29.
  • The governor proposes to set the SFEU balance at $4.5 billion. The SFEU is a general-purpose reserve providing capacity for unanticipated expenditures and has been set between $3.5 billion and $4 billion in recent budget years
• Differences in estimates between the LAO and administration are attributable to three factors:
  • The administration proposes that the state continues to suspend deposits into the Rainy-Day Fund, while in November, the LAO assumed deposits of $3-$4 billion annually.
  • The administration’s revenues are higher in 2026-27 and 2027-28.
  • The administration’s estimate of spending is lower than the LAO’s in 2028-29, likely due to lower spending estimates in health and human services, higher education, and required debt payments under Proposition 2.
• Revenue estimates are reasonable, but are subject to much uncertainty, largely because recent increases are due to stock market gains, not a strengthening in the state’s broader economy.
• The cost of the Los Angeles fires was not included in the administration’s estimates as the budget proposal was developed prior to January.
• Delayed tax payments because of the Los Angeles fires will mean that about one-third of 2024 tax payments won’t be realized until October 2025, making revenue numbers even more difficult to ascertain.
• The administration’s use of reserves is reasonable.
• The LAO recommends that the legislature examine the multi-year budget picture with an eye toward solving for future year deficits.
• The legislature may want to ascertain the efficacy of current programs now versus waiting until the May revision.
• The administration’s goals for increasing the cap on the Budget Stabilization Account from 10% to 20% and excluding reserve deposits from the state appropriations limit is a good first step in enhancing reserve policies. The legislature could additionally consider changing formulas that set aside funds each year to reduce the impacts of revenue volatility.

Special Session Legislation

The legislature is anticipated to send four special session bills to Governor Gavin Newsom for his signature on January 23. The measures provide funding for addressing the Los Angeles wildfires and for legal resources to file and defend against lawsuits related to the new federal administration. Identical versions of each bill were introduced in each house of the legislature, however, only one version of each measure is anticipated to be sent to the governor.

ABX1 4/SBX1 4 Amendment to the 2024 Budget Act: Wildfire Response and Recovery. These measures authorize emergency expenditure authority related to the 2025 Los Angeles wildfires:

• Appropriates up to $1.5 billion in one-time General Fund, or other available funds, for augmentations to departments and agencies, subject to Department of Finance approval, for use in accordance with allowable uses of the Disaster Response-Emergency Operations Account in areas of the state affected by wildfire states of emergency that were declared by the governor in January 2025. Funds shall be available for encumbrance until the state of emergency declaration is terminated, or on a date determined by the Department of Finance.
  • Allowable uses include, but are not limited to, emergency protective measures, evacuations, sheltering for survivors, household hazardous waste removal, assessment and remediation of post-fire hazards such as flash flooding and debris flows, traffic control, air quality and water and other environmental testing, and other actions to protect health, protect the safety of persons or property, and expedite recovery.
  • Augmentations for the first $1 billion of this amount shall be made immediately with the remainder available no sooner than three days following the transmittal of the approval to the chairperson of the Joint Legislative Budget Committee or an earlier date as determined by the chairperson of the joint committee, or the chairperson’s designee.
  • Note - this measure provides the Department of Finance wide discretion in terms of funding source - for example, the Proposition 4 climate bond could be tapped to provide General Fund relief.

ABX1 5/SBX1 3 Amendment to the 2024 Budget Act: Wildfire Response and Recovery. These measures amend the 2024 Budget Act to authorize emergency expenditure authority related to the 2025 Los Angeles wildfires:

• Appropriates $4 million one-time General Fund to the Department of Housing and Community Development for a grant program for local governments in areas impacted by the January 2025 wildfires to provide additional planning review and building inspection resources for the purpose of expediting building approvals for homeowner rebuilding.
• Appropriates $1 million one-time General Fund to the Department of General Services to aid the Los Angeles Unified School District, Pasadena Unified School District, and any impacted charter schools located within those school districts, to rebuild and recover school facilities damaged as a result of the January 2025 wildfires.
• Appropriates up to $1 billion in one-time General Fund for augmentations to departments and agencies, subject to Department of Finance approval, for use in accordance with allowable uses of the Disaster Response-Emergency Operations Account in areas of the state affected by wildfire states of emergency that were declared by the Governor in January 2025.
  • Allowable uses include, but are not limited to, emergency protective measures, evacuations, sheltering for survivors, household hazardous waste removal, assessment and remediation of post-fire hazards such as flash flooding and debris flows, traffic control, air quality and water and other environmental testing, and other actions to protect health, protect the safety of persons or property, and expedite recovery.
  • The Department of Finance shall post on its website a Los Angeles Wildfire Response and Recovery Expenditure Report, providing information on the use of state funding concerning the response and recovery from the January 2025 wildfires.
  • The executive branch is required to seek reimbursements from the federal government for the maximum possible amount of funds related to response and recovery from the January 2025 wildfires.

ABX1 2/SBX1 2 Civil legal services for indigent persons and related costs

• Legal Services Trust Fund Commission
  • Appropriates $10 million to be distributed through the Legal Services Trust Fund Commission to qualified legal services projects and support centers to provide legal services to vulnerable persons at risk of detention, deportation, eviction, wage theft, intimate partner violence, and other actions that put their safety at risk, as a result of potential or actual federal actions.
• Immigration Services Funding
  • Appropriates $10 million to the Department of Social Services for immigration services funding.
  • Appropriates $5 million to the Judicial Council, to be distributed through the California Access to Justice Commission to nonprofit providers of legal services.

ABX1 1/SBX1 1 Executive branch litigation costs. Appropriates up to $25 million for the purpose of defending California against enforcement and legal actions taken by the federal government, filing affirmative litigation challenging actions taken by the federal government, and taking administrative action authorized under state law to mitigate the impacts of actions taken by the federal government.

California FAIR Plan Assessment

California’s FAIR Plan is facing a major test as the state continues to grapple with the historic wildfires in Southern California. The fires are widely expected to trigger an assessment event for the FAIR Plan, having damaged or destroyed more than 12,000 structures and killed at least 27 people. Fitch Ratings recently reported that the FAIR plan’s current estimated losses from the fires are around $6 billion. The 1994 Northridge Earthquake was the last time an assessment was triggered.

The FAIR Plan is a private association of all insurers licensed to write property insurance in California and is funded primarily through the policies it sells to customers. It is not a state agency and is not funded by the state or other public agencies. The FAIR Plan was initially established in response to the Watts riots in 1965 and has evolved to be the insurance of last resort for many Californians who live in wildland urban interface (WUI) areas who are at higher risk of wildfire.

The FAIR Plan offers basic property insurance for all Californians who cannot access coverage in the voluntary insurance marketplace; however, insurance through the plan can be costly and dwelling coverage is capped at $3 million. As of September 30, 2024, the number of FAIR Plan policies increased by 41% over the previous year to over 450,000.

Last Friday the FAIR Plan reported that it had $377 million in reserves, as well as $5.78 billion worth of reinsurance. The reinsurance requires the plan to pay the first $900 million in claims and has other limitations.

If an assessment is triggered, Fitch reports that it will likely lead to increased insurance premiums or reduced coverage availability in the private market as insurers adjust to offset their increased liabilities from FAIR Plan contributions. Under new regulations passed late last year as part of Insurance Commissioner Ricardo Lara’s Sustainable Insurance Strategy, state regulators can split the first $1 billion beyond what FAIR is able to cover evenly between assessments on insurance companies and policyholders. After that, the insurance companies can pass on 100% of additional costs to policyholders as higher premiums. Fitch cautioned that insurers with wildfire losses exceeding earnings and reinsurance limits amid weakening capital levels will be vulnerable. Thus, a FAIR Plan assessment could add additional pressure to the already challenged homeowners’ insurance market. 

Beyond its own cash reserves and reinsurance, the FAIR Plan could access additional liquidity using catastrophe bonds. Assemblymembers Lisa Calderon (D-Whittier) and David Alvarez (D-San Diego) introduced AB 226 that aims to assist in issuing catastrophe bonds and help finance the costs of insurance claims, increasing claims-paying capacity of the FAIR Plan.

AB 226 would authorize the FAIR Plan to request the California Infrastructure and Economic Development Bank to issue bonds if it faces liquidity challenges in the event of a major catastrophe such as a wildfire.

“The most important question for us right now is: ‘How can we help?’” Speaker Rivas told reporters. “Our Assembly is taking action today. The Assembly plans to advance legislation to support recovery efforts, including a bill focused on insurance claims for homeowners.”

AB 226 would require a two-thirds vote and is eligible for a policy committee hearing on February 9. 

Birthright Citizenship Order Lawsuit

Attorney General Rob Bonta filed his first lawsuit against the Trump administration this year on January 21, 2025. He is joined by the attorneys general of New Jersey, Massachusetts, Colorado, Connecticut, Delaware, Hawaii, Maine, Maryland, Michigan, Minnesota, Nevada, New Mexico, New York, North Carolina Rhode Island, Vermont, and Wisconsin, along with the City of San Francisco in the complaint.

The lawsuit challenges the Trump administration’s executive order seeking to end birthright citizenship. The order directs federal agencies to prospectively deny the citizenship rights of American-born children whose parents are not lawful residents. The order instructs the Social Security Administration and Department of State, respectively, to cease issuing social security numbers and U.S. passports to these children and directs all federal agencies to treat these children as ineligible for any privilege, right, or benefit that is reserved by law to individuals who are U.S. citizens.

Under the Fourteenth Amendment to the U.S., all children born on U.S. soil are automatically granted U.S. citizenship and the rights and privileges that come with it. Attorney General Bonta’s complaint states that President Trump's action is unconstitutional and points out that the result of the change for California could jeopardize services to the most vulnerable children, including healthcare access for low-income children, foster care services for neglected and abused kids, and early interventions for infants, toddlers, and students with disabilities.

Assembly Committee Membership

On January 17, Assembly Speaker Robert Rivas announced committee memberships for 2025. Below is a list of committee members within the Orange County delegation. The full list of committee assignments may be found here.

Committee Chairs

Aging and Long-Term Care: None

Agriculture: None

Appropriations: Assemblymembers Kate Sanchez, Vice Chair; Diane Dixon; Blanca Pacheco; and Tri Ta

Arts, Entertainment, Sports, and Tourism: Assemblymembers Sharon Quirk-Silva and Avelino Valencia

Banking and Finance: Assemblymembers Avelino Valencia, Chair; Phillip Chen (R-Yorba Linda), Vice Chair; and Diane Dixon

Budget: Assemblymembers Cottie Petrie-Norris and Sharon Quirk-Silva

Budget Subcommittee No. 1 on Health: None

Budget Subcommittee No. 2 on Human Services: None

Budget Subcommittee No. 3 on Education Finance: None

Budget Subcommittee No. 4 on Climate Crisis, Resources, Energy, and Transportation: Assemblymember Cottie Petrie-Norris

Budget Subcommittee No. 5 on State Administration: Assemblymember Sharon Quirk-Silva, Chair

Budget Subcommittee No. 6 on Public Safety: None

Budget Subcommittee No. 7 on Accountability and Oversight: None

Business and Professions: Assemblymember Phillip Chen

Communications and Conveyance: None

Economic Development, Growth, and Household Impact: Assemblymember Cottie Petrie-Norris

Education: None

Elections: None

Emergency Management: None

Environmental Safety and Toxic Materials: None

Governmental Organization: Assemblymembers Laurie Davies, Diane Dixon, Blanca Pacheco, Kate Sanchez, Tri Ta, and Avelino Valencia

Health: Assemblymember Kate Sanchez

Higher Education: None

Housing and Community Development: Assemblymembers Sharon Quirk-Silva and Tri Ta

Human Services: None

Insurance: Assemblymembers Phillip Chen, Cottie Petrie-Norris, and Avelino Valencia

Judiciary: Assemblymembers Diane Dixon, Vice Chair; Blanca Pacheco; and Kate Sanchez

Labor and Employment: Assemblymember Phillip Chen

Local Government: Assemblymembers Tri Ta, Vice Chair and Blanca Pacheco

Military and Veterans Affairs: Assemblymembers Laurie Davies, Vice Chair and Avelino Valencia

Natural Resources: None

Privacy and Consumer Protection: Assemblymembers Diane Dixon, Vice Chair and Cottie Petrie-Norris

Public Employment and Retirement: None

Public Safety: None

Revenue and Taxation: Assemblymembers Tri Ta, Vice Chair and Sharon Quirk-Silva

Rules: Assemblymembers Blanca Pacheco, Chair; Kate Sanchez; and Tri Ta, Republican Alternate

Transportation: Assemblymember Laurie Davies, Vice Chair

Utilities and Energy: Assemblymembers Cottie Petrie-Norris, Chair; Phillip Chen; and Tri Ta

Water, Parks, and Wildlife: Assemblymember Laurie Davies

Legislative Ethics: Assemblymember Phillip Chen, Co-Chair

Joint Legislative Audit Committee: Assemblymember Sharon Quirk-Silva

Joint Legislative Budget: Assemblymember Sharon Quirk-Silva

Joint Legislative Committee on Climate Change Policies: Assemblymember Cottie Petrie-Norris

Governor’s Press Releases

Below is a list of the governor’s press releases beginning January 15.

January 22: Governor Newsom deploys specialized debris flow teams to Southern California ahead of wet weather

January 21: Governor Newsom meets with NASA JPL workers, small business owners impacted by firestorm

January 21: Here’s all the actions Governor Newsom has taken in response to the Los Angeles fires

January 20: Governor Newsom statement on President Trump’s executive actions on climate

January 20: Governor Newsom issues statement on President Trump’s executive order to repeal birthright citizenship

January 20: On MLK Day of Service, Governor Newsom and First Partner Siebel Newsom volunteer to help Los Angeles wildfire survivors

January 20: Governor Newsom statement on the inauguration of President Donald Trump and Vice President JD Vance

January 20: California continues to help individuals in regions impacted by Los Angeles fires access health care, food and water, and shelter

January 20: Governor Newsom, First Partner Siebel Newsom statement on passing of Cecile Richards

January 20: Governor Newsom issues executive order to help protect firestorm-affected communities from landslides and flooding

January 19: Governor Newsom signs executive order to protect public safety in firestorm-devastated communities

January 19: Governor Newsom deploys firefighting resources ahead of more dangerous fire weather

January 18: California and Biden-Harris Administration partner on website to consolidate local, state, and federal support for Los Angeles firestorm survivors

January 18: Governor Newsom announces commitments from major lenders to provide firestorm survivors with mortgage relief

January 17: Governor Newsom bans evictions based on hosting fire survivors

January 16: Governor Newsom announces $20 million to support firestorm-impacted workers

January 16: Governor Newsom extends state property tax deadlines for LA firestorm communities until April 2026

January 16: Governor Newsom issues executive order to fast-track temporary housing for Los Angeles firestorm area

January 15: Governor Newsom deploys additional CHP officers to protect firestorm-devastated communities

January 15: California secures expanded federal funding to repair firestorm-damaged public infrastructure

January 15: Governor Newsom signs executive order to jumpstart firestorm cleanup of damaged and destroyed homes

January 15: Governor Newsom Proclaims Dr. Martin Luther King, Jr. Day 2025

LEGISLATIVE BRANCH ACTIVITY

Update on FY2025 Appropriations

Members of the congressional Appropriations Committees aim to secure an initial, high-level agreement on government funding figures no later than early next week, setting the stage for bipartisan spending talks ahead of a March 14 deadline. The agreement, once in place would kickstart more detailed discussions on spending levels for each of the 12 annual government funding bills. The process has been delayed for nearly four months but the recent developments provide hope for a final resolution to the Fiscal Year 2025 appropriations process.

On December 20, Congress passed a continuing resolution that extends government until March 14. The continuing resolution kept funding at existing levels, allowing time for lawmakers to negotiate a full-year budget. However, partisan debates over spending priorities, particularly between defense and domestic programs, remain unresolved. The temporary funding underscores the need for broader budget reforms and long-term fiscal planning in the coming year.

The County of Orange has several direct funding allocations included in some of the FY25 appropriations bills. A final agreement must be reached and the bills approved and signed into law for the county to receive its anticipated funding.

Congress Passes Laken Riley Act

This week the Senate and House passed the Laken Riley Act (S.5) sending it to the President’s desk. The legislation, likely to be one of the first on President Donald Trump’s desk, mandates federal officials to deport illegal immigrants charged with theft and other crimes. Additionally, S.5 gives states a path to court if the federal government is not enforcing the federal law. The legislation would cost $26.9 billion to implement in its first year, according to Immigration and Customs Enforcement (ICE) estimates.

The Senate voted to include two GOP amendments to expand the list of offenses leading to mandatory detention. The Senate rejected an amendment from Democratic Senator Chris Coons that would have struck language that allowed state attorneys general to sue federal immigration authorities. Others offered by Democrats were not considered.

S.5 is named after Laken Riley, a Georgia nursing student killed by an undocumented immigrant. Senate Majority Leader John Thune said there would be more border immigration legislation to come, including a bill to provide ICE with additional agents and detention capacity. The Laken Riley Act’s bipartisan collaboration could offer an immigration playbook for the GOP this Congress.

President Trump Meets with Speaker Johnson and Majority Leader Thune

On Tuesday, President Donald Trump sat down with House Speaker Mike Johnson and Senate Majority Leader John Thune for their first discussion since Republicans formally took power in Washington. The discussion centered around the President’s agenda, deadlines to lift the debt ceiling, and funding the government using their narrow majorities.

The budget reconciliation process will allow Republicans to address spending-related issues by simple majority. Afterwards, Speaker Johnson told reporters he is personally working on a “one-bill strategy” to pass Trump’s policy agenda. House Majority Leader Steve Scalise suggested that Senate Republicans were on board for the one bill strategy; Senate Majority Leader Thune has previously vocalized support for two separate legislative packages on behalf of Senate Republicans. All three will continue their discussions throughout the first 100 days of Trump’s final term.

House Committees are beginning to meet to shape their strategies for the reconciliation package. House Committee on Energy and Commerce Chair Brett Guthrie has said Republicans are interested in utilizing savings from the Greenhouse Gas Reduction Fund, a $27 billion investment created by the Inflation Reduction Act. Additionally, Republicans have discussed repealing green energy tax incentives and approving mining and oil and gas drilling projects in order to pay for their legislative priorities.

House Passes the Fix Our Forests Act

This week, the House or Representatives approved the Fix our Forests Act (H.R. 471), the legislation heads to the Senate for further consideration. Federal agencies would have expanded authorities to take preventative action against wildfires that would be exempt from environmental review and shielded from legal challenges. The Agriculture and Interior Departments would have to actively manage areas facing a heightened risk of wildfires, including by removing trees and vegetation that cause fire to spread.

The bipartisan bill was considered by the House of Representatives in September of 2024 but was not taken up by the Senate before the end of last year’s legislative session. The disastrous wildfires in Southern California renewed the effort by congressional leaders to address forest management issues, spurring renewed consideration of the legislation.

EXECUTIVE BRANCH ACTIVITY

President Trumps Sworn-in and Signs Dozens of Executive Actions

On January 20, President Donald Trump signed 200 executive orders aimed at reversing policies from the previous administration and implementing his campaign promises. All information on the executive orders can be found here.

Key actions include:

1. Unleashing American Energy

The President declared a "national energy emergency" to expedite the development of fossil fuel infrastructure. This includes plans to:

• replenish strategic reserves
• increase energy exports,
• cease federal leasing for wind farms,
• withdraw from the Paris climate agreement,
• encourage energy exploration on federal lands and waters,
• dismantle subsidies and policies favoring electric vehicles

These actions align with his campaign promises to boost the oil and gas industries and roll back climate policies from the previous administration.

2. Deployment of U.S. Troops to the Border

An executive order was signed to deploy U.S. troops to the southern border. Additionally, certain international cartels and crime organizations have been labeled as terrorist groups. The Departments of Homeland Security and Defense have been directed to complete the construction of the border wall and deploy personnel for border control. These actions are part of a series of 11 border-related executive orders aimed at enhancing U.S. border security.

3. End of Birthright Citizenship

President Trump signed an executive order to end birthright citizenship for children of undocumented immigrants. This policy, set to take effect in 30 days, claims that U.S. citizenship should not automatically extend to children born in the country to parents who are unlawfully present, non-citizens, or under temporary legal status. This move contradicts the 14th Amendment, which grants automatic citizenship to anyone born on U.S. soil, and significant legal challenges have already been filed.

4. Reversal of Transgender Protections and Termination of DEI Programs

President Trump signed executive orders that reverse protections for transgender individuals and terminate diversity, equity, and inclusion (DEI) programs within the federal government. One order restricts federal recognition to only two sexes, male and female, based on reproductive anatomy, blocking federally funded transition services and other transgender affirmations such as pronoun use in government facilities. Another order halts federal DEI initiatives, promoting a return to merit-based treatment. These actions have provoked significant backlash from civil rights groups who argue that gender and equity are more nuanced.

5. Pardons Related to January 6 Capitol Riot

The President issued pardons for individuals charged in connection with the January 6 Capitol riot. This includes approximately 1,500 people charged in the 2021 attack, directing the Justice Department to drop about 300 pending cases, and ordering the release of a small group of 14 other defendants who were charged in the most serious sedition cases. These actions go farther than many were expecting, as they cover roughly 600 people with felony convictions for assaulting police officers or impeding police during the riot.

6. Withdrawal from the World Health Organization (WHO)

An executive order was signed to begin the process of withdrawing the United States from the World Health Organization. This move has raised concerns among scientists and public health experts, who fear it could roll back decades-long gains made in fighting infectious diseases and weaken global defenses against dangerous new outbreaks capable of triggering pandemics. 

7. California Water Conveyance Memorandum

The memo issued by President Trump directs the U.S. Bureau of Reclamation, U.S. Fish and Wildlife Service, and National Marine Fisheries Service to “route more water from the Sacramento-San Joaquin Delta to other parts of the state for use by the people there who desperately need a reliable water supply.” The agencies have 90 days to report on what their future actions will be.

The likely outcome is that the agencies will reinitiate consultation on the long term operations of the Central Valley Project and State Water Project and work toward issuance of a new biological opinion managing the CVP and SWP operations.

These executive orders reflect President Trump's commitment to implementing his "America First" agenda and reversing policies from the previous administration.

President Trump Reverses Biden Electric Vehicle Orders

President Donald Trump has issued executive orders to eliminate subsidies and other policies that favor electric vehicles. The orders direct agencies to pause disbursement of funds appropriated through the Inflation Reduction Act and Infrastructure Investment and Jobs Act, including funding for EV charging stations. The order calls for terminating waivers that allow states to limit gas-powered car sales, indicating that Trump will look to take on California on those grounds. Currently, California requires automakers to deliver increasing numbers of zero-emission vehicles every year through 2035, when all new cars sold will need to be zero-emission.

Trump stopped short of explicitly directing the Environmental Protection Agency to review or rewrite these rules, or for the Department of Transportation to rework fuel-economy regulations that also were toughened under President Biden. Trump advisers recommended repealing federal policies that boost consumer demand for EVs, including the $7,500 federal tax credit for plug-in car purchasers. While it would take an act of Congress to fully rescind the consumer rebate, Trump has the authority to expand limits on which companies are eligible to receive the rebates, and make other tweaks. A legally enduring rule could take months to complete.

Department of Justice Orders Criminal Probes Into Immigration Obstructers

On Tuesday, the Department of Justice (DOJ) ordered criminal investigations into state and local actors that obstruct federal immigration orders. The message to all DOJ employees from the new acting Deputy Attorney General lays out a “newly established Sanctuary Cities Enforcement Working Group.” The project, which involves the Civil Division, will focus on identifying state and local laws that clash with executive branch immigration initiatives and challenging those policies in court where appropriate.

The new acting Deputy Attorney General said that they will pursue investigations under various statutes, including a law forbidding conspiracies to defraud or commit offenses against the US. ICE lacks the personnel to carry out the scale of arrests and deportations Trump has promised, making cooperation from local officials critical. President Trump’s officials have pledged to withhold funding for those that don’t cooperate with ICE.

Trump EPA Nominee Lee Zeldin has Confirmation Hearing

During his confirmation hearing, President Donald Trump’s EPA Administrator nominee Lee Zeldin said he believes climate change “is real,” and that the federal government must be addressing it. That position cuts against Trump’s repeated allegation that climate science is a “hoax.” It also diverges from the position of Trump’s first EPA administrator, Scott Pruitt, who questioned whether climate change is a serious threat or driven by humans.

Zeldin promised to closely scrutinize the billions of dollars President Biden’s EPA has issued in grant funding under the infrastructure and climate laws. Many Republicans, as well as the EPA’s own inspector general, have repeatedly voiced concerns about whether that money has gone to deserving recipients. Additionally, Zeldin said he wants to work on permitting reform, and that he sees a role for the EPA to take certain actions, such as the issuance of environmental impact statements, to make permitting happen faster.

Lee Zeldin is a former Congressman who has drawn sharp criticism from mainstream environmental groups—including the Natural Resources Defense Council, Earthjustice, and the Union of Concerned Scientists—who have accused him of voting to leave the Paris agreement and cut the EPA’s funding.

LEGISLATION INTRODUCED BY ORANGE COUNTY DELEGATION SINCE JANUARY 15

Friday 01/24

‘A perfect storm’: California’s housing crisis could worsen as construction slows -- President Donald Trump’s proposals could lead to a further decline, experts say, contributing to a shortage of available workers and driving up inflation. Christian Leonard in the San Francisco Chronicle$ -- 1/24/25

Estimated cost of fire damage balloons to more than $250 billion -- As raging wildfires continue to torment Southern California, estimates of the total economic loss have ballooned to more than $250 billion, making it one of the most costly natural disasters in U.S. history. Roger Vincent in the Los Angeles Times$ -- 1/24/25

Thursday 01/23

Huntington Beach declares itself a ‘non-sanctuary city’ -- Huntington Beach is continuing its rebellious streak against the state’s sanctuary immigration law, which limits local resources from assisting federal immigration enforcement officials, declaring itself a “non-sanctuary city” at its Tuesday, Jan. 21, City Council meeting. Michael Slaten in the Orange County Register -- 1/23/25

Los Angeles wildfire recovery package has strong bipartisan support ahead of lawmakers’ vote -- Special session bill hearings on Wednesday were a rare show of bipartisanship as California lawmakers advanced $2.5 billion to expedite cleanup and recovery of the Los Angeles fires. Nicole Nixon in the Sacramento Bee$ -- 1/23/25

Wednesday 01/22

Did your car insurance just go up? A new California law might be why -- Don’t just chalk it up to inflation: A new law that went into effect in California on Jan. 1 has increased the minimum coverage required for everyone. Jessica Roy in the San Francisco Chronicle$ -- 1/22/25

Will new bond funds be enough to rebuild LA schools — and all of California’s other crumbling schools? -- Some schools destroyed years ago in the Sonoma and Butte fires are just now reopening. The long, expensive process of rebuilding in LA may eat up much of the money voters approved in November for school repairs statewide. Carolyn Jones CalMatters -- 1/22/25

Tuesday 01/21

What do Trump’s environmental rollbacks mean for California? -- From vehicle emissions to offshore oil and wind energy, clashes began to take shape Monday. Paul Rogers in the San Jose Mercury$ -- 1/21/25

Southern California is about to get its first rain in months. Here’s what it means for the fires -- A small amount of rain is in the forecast for the region beginning late Friday through early Saturday, a much anticipated change of weather for the region, which has suffered through a prolonged dry spell that has fueled deadly and destructive fires. Richard Winton, Hannah Fry and Rong-Gong Lin II in the Los Angeles Times$ -- 1/21/25

Monday 01/20
Airborne Lead and Chlorine Levels Soared as L.A. Wildfires Raged -- The findings give new insight into the dangers of urban wildfires that burn plastics and other chemicals in homes and property. Hiroko Tabuchi in the New York Times$ -- 1/20/25


Weekend (01/18-01/19)

California insurance commissioner discusses statewide impact of L.A. fires -- The Los Angeles fires have cast uncertainty over when the insurance crisis buffeting the entire state will ease, California Insurance Commissioner Ricardo Lara told the Chronicle during an interview Saturday in Santa Monica, where he was attending a workshop for wildfire survivors. Susie Neilson, Maliya Ellis in the San Francisco Chronicle$ -- 1/18/25

Experts warn of a ‘quad-demic’ as flu, RSV, COVID-19 and norovirus converge in California -- The term refers to the simultaneous spread of four major viruses: COVID-19, influenza, respiratory syncytial virus and norovirus. While each virus has distinct effects, their combined impact could overwhelm health care systems and disrupt daily life. Aidin Vaziri in the San Francisco Chronicle$ -- 1/18/25