White House Defers California Medicaid Funds

Vice President JD Vance announced Wednesday that the federal government is deferring $1.3 billion in Medicaid reimbursements to California, accusing the state of failing to police fraud.

At a White House news conference, the Centers for Medicare and Medicaid Services Chief Mehmet Oz said California’s records show “major red flags” and cited $630 million in billing, $500 million in home health services, and $200 million in what he called questionable expenditures linked to coverage for illegal immigrants.

Attorney General Rob Bonta said California is being “targeted solely for political reasons,” and Newsom’s office disputed Oz’s fraud claims. The governor’s office argued that home-services billing has grown because the state aims to keep aging residents out of institutional care.

The deferral is the largest of its kind and follows a similar action withholding $243 million from Minnesota. Vance, who chairs an anti-fraud task force, said his team is reviewing Medicaid oversight in multiple states.

Newsom’s Final Budget Avoids State Deficit

Gov. Gavin Newsom on Thursday unveiled a revised $350 billion budget for his final year in office that erases a projected $2.9 billion deficit.

Newsom’s office said revenues are running $16.5 billion ahead of January projections, driven mostly by the booming stock market and artificial intelligence industry. The plan adds little new spending but avoids major cuts.

New investments include $300 million to backfill lost government health subsidies, $5 billion for teacher training, and $100 million to help the Los Angeles area recover from last year’s wildfires.

Newsom used the rollout to criticize President Donald Trump and oppose a proposed tax on billionaires. State lawmakers have pitched corporate tax increases, but Newsom largely opposes them, arguing they could drive businesses out of state.

Nonpartisan analysts project budget holes of $20 billion or more annually in coming years. The Legislature must pass a final spending plan by the end of June.

Newsom Ex-Aide Takes Corruption Plea Deal

Dana Williamson, Gov. Gavin Newsom’s former chief of staff, agreed Thursday to plead guilty to three federal charges in a corruption case tied to former federal Health Secretary Xavier Becerra’s dormant campaign account.

Williamson will plead to conspiring to commit bank or wire fraud, filing a false tax return, and lying to the FBI. The other 20 charges from last year’s indictment will be dropped.

Prosecutors say Williamson, lobbyist Greg Campbell, and Becerra’s former Chief of Staff Sean McCluskie funneled $225,000 to benefit McCluskie through a no-show job arrangement. Campbell and McCluskie pleaded guilty last fall.

Becerra, a top-polling Democrat in California’s June 2 gubernatorial primary, has not been charged and called the scheme a “gut punch.” Newsom is also not accused of wrongdoing.

Williamson’s attorney McGregor Scott has said federal prosecutors asked her to cooperate in a probe of Newsom. She told them she had no information to provide.

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➤ Hayward: The Duenas family sued PG&E, Alameda County, and two contractors Wednesday over a Dec. 11, 2025, gas line explosion that destroyed their home and injured three family members. The lawsuit alleges PG&E and contractors knew about the gas leak for more than two hours before the blast but failed to warn residents to evacuate. (See Details)

➤ San Mateo County: A judge denied Scott Peterson’s latest attempt to overturn his 2004 murder conviction in the killings of his wife, Laci Peterson, and unborn son Conner. Prosecutors said the ruling rejected all 14 claims in Peterson’s habeas petition, calling them recycled arguments without credible new evidence. (More)

➤ Shasta County: Ballots mailed for the June 2 primary contain multiple typos, including an incorrect term end date in the District 1 U.S. representative race, while the Voter Information Guide wrongly says mail ballots must be received by Election Day rather than just postmarked. (See Details)

➤ Stockton: California Water Service warned residents this week they may notice unusual smells, tastes or discoloration in tap water following a seasonal change in the utility’s water source. The company said conditions should return to normal soon and advised customers to call 209-547-7900 if problems persist. (More)

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➤ Central Valley: Fresno Mayor Jerry Dyer and nine other California mayors are opposing a high-speed rail proposal to use growth in local tax revenue near future stations to help fund the project. The mayors called the plan fiscally reckless and legally questionable, while the rail authority says it would capture only a share of new revenue. (See Details)

➤ Fresno: The school district is reassigning more than 250 classified and certificated employees through a “bumping” process aimed at avoiding layoffs, district officials said. The district has lost 1,000 to 1,500 students a year since the pandemic, a decline projected to continue through 2030. (See Details)

➤ Central Coast: A Facebook scam impersonating actor Billy Bob Thornton, who lives on the Central Coast, is making the rounds on social media. After a month of chatting, the imposter tried to sell a viewer a $1,000 membership card for a private autograph signing. (See Details)

➤ Seaside: Zai Soto, 21, pleaded not guilty Wednesday to 18 sex crime charges involving three children and a cat, Monterey County prosecutors said. Soto faces up to 75 years to life if convicted, and Seaside police called it one of the worst cases they’ve investigated. (See Details)

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➤ Santa Clarita: Eleven people were injured Wednesday, including one critically, after a gravel-hauling semitruck crashed into a Santa Clarita Transit bus at Golden Valley Road and Centre Pointe Parkway. The Los Angeles County Sheriff’s Department said the driver tried to turn rather than run a red light. Drugs and alcohol were not factors. (See Details)

➤ Los Angeles: Mayor Karen Bass appointed Los Angeles Unified School District Inspector General Susan “Sue” Stengel as the city’s new deputy mayor of public safety effective Monday, her third appointment to the role since taking office in December 2022. The position oversees the Los Angeles Police Department, Los Angeles Fire Department, and emergency management agencies. (See Details)

➤ San Diego: Mayor Todd Gloria’s proposed fiscal 2027 budget would close 38 public bathrooms, including 13 in Mission Bay Park and most bathrooms on Shoreline Beach, saving the city about $3 million. Residents warned the closures could trigger a repeat of the 2017 hepatitis A outbreak that killed 20 people. (See Details)

➤ Orange County: Orange County prosecutors launched a new unit targeting illegal e-bikes and e-motorcycles, warning parents they could face criminal charges if their children ride unlawful vehicles. Three parents have already been charged this year, including a mother accused of involuntary manslaughter after her teenage son fatally struck an 81-year-old man. (See Details)

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➤ The Ducks were eliminated from the Stanley Cup Playoffs with a 5-1 loss to the Vegas Golden Knights in Game 6 last night. Anaheim cut the deficit to 3-1 in the second period on Mikael Granlund’s power-play goal, but Vegas pulled away late to advance to the Western Conference Final. (More)

➤ California’s attorney general is investigating whether FIFA violated consumer protection laws by changing fans’ seating zones after they purchased World Cup tickets. (More)

➤ The LA Rams will host the Packers this November in the NFL’s first-ever Thanksgiving Eve game. The matchup will stream on Netflix. (More)

➤ Professional hockey is returning to Stockton this fall with a new Federal Prospects Hockey League team set to play at Adventist Health Arena for the city’s first pro hockey season in four years. (More)

➤ The LA Angels announced the departure of longtime broadcaster Patrick O’Neal after 13 seasons with the team. (More)

➤ Yesterday’s Results: NHL | MLB | WNBA | NCAAB | Soccer | Golf

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➤ Cisco told employees Wednesday it will cut fewer than 4,000 jobs, less than 5% of its workforce, as the San Jose company restructures around artificial intelligence initiatives. Cisco’s stock surged 15% after the announcement. Reuters also reported that Sunnyvale-based LinkedIn plans to cut about 875 workers, or 5% of staff, in layoffs the company said are unrelated to AI. (See Details)

➤ California drivers are paying $6.15 a gallon, the highest in the nation, 11 weeks into the Iran war and a global energy shock. California Energy Commission Vice Chair Siva Gunda told lawmakers supply forecasts look stable through mid-June, but prices and sourcing become more uncertain after that as the state relies more heavily on imported fuel. (See Details)

➤ Reyes Coca-Cola Bottling will permanently close its 114-year-old Ventura plant on July 10, according to a state layoff notice. The closure affects 85 workers, though the company said most employees are expected to be reassigned to other Southern California facilities. (See Details)

➤ In-N-Out announced this week it will open a new 3,808-square-foot drive-thru restaurant in Irvine in late 2026, even as the chain’s Irvine corporate office prepares to close by 2030. Corporate operations are shifting to a new home office in Baldwin Park and an Eastern territory office in Franklin, Tennessee. (See Details)

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➤ The California Strawberry Festival returns to the Ventura County Fairgrounds Saturday and Sunday from 10 a.m. to 6:30 p.m. The beachside event features more than 40 food vendors, live music, arts and crafts booths and the popular build-your-own strawberry shortcake experience. (See Details)

➤ Juvenile great white sharks are showing up in unusually high numbers from Huntington Beach to Santa Barbara County this spring, according to the Cal State Long Beach Shark Lab. Warming waters are drawing baby sharks north from Baja earlier than usual. Fewer than 20 shark fatalities have been recorded statewide since 1950. (See Details)

➤ California’s only known cacao farming project is taking root in Santa Barbara, where chocolatier Michael Orlando has spent 15 years trying to grow a crop usually found near the equator. The farm now includes 53 cacao trees and 200 more seedlings, with Orlando hoping to eventually produce a fully Santa Barbara-grown chocolate bar. (See Details)

➤ Disneyland’s Soarin’ ride will become Soarin’ Across America on July 2 at Disney California Adventure, Disney announced Thursday. The updated attraction will sweep riders over the New England coastline, New York Harbor, Grand Canyon West, the Hawaiian Islands, the bayous, the Great Plains, and Mount Rushmore. (See Details)

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A Facebook scam impersonating actor Billy Bob Thornton is making the rounds on California’s Central Coast. Have you ever been targeted by an online scam?

1. Yes, and I fell for it
2. Yes, but I recognized the scam
3. I get attempts regularly
4. Never, that I know of

Yesterday’s Results:

If you were submitting one thing to the Willows time capsule to be opened in 2076, what would it be?

1. Today’s headlines: 28%
2. A handwritten letter: 20%
3. A photo of my family: 19%
4. A personal keepsake: 17%
5. Other: 16%

About what share of the strawberries grown in the United States come from California?

Show me the answer