SACRAMENTO COUNTY
Governor Newsom seeks injunction
to immediately stop Trump tariffs
Warns of impacts to state budget
Governor Gavin Newsom and Attorney General Rob Bonta today will file a motion for a preliminary injunction to stop the Trump Administration’s illegal tariffs. The injunction was filed as part of California’s lawsuit challenging President Trump’s use of emergency powers to enact broad-sweeping tariffs that hurt states, consumers, and businesses.
The tariffs challenged under California’s lawsuit are projected to, at a minimum, cost California consumers $25 billion and result in the loss of over 64,000 jobs. However, the total cost of President Trump’s tariffs is projected to cost California households upwards of $40 billion.
As the largest economy in the nation — and the fourth largest in the world — President Trump’s illegal tariffs are having a profound impact on California’s budget and how the state can meet the needs of its residents.
Economic dominance threatened by recklessness
California is the backbone of the nation’s economy. California’s gross domestic product was $4.1 trillion in 2024. The state drives national economic growth and also sends over $83 billion more to the federal government than it receives in federal funding. California is the leading agricultural producer in the country and is also the center for manufacturing output in the United States, with over 36,000 manufacturing firms employing over 1.1 million Californians. The Golden State’s manufacturing firms have created new industries and supplied the world with manufactured goods spanning aerospace, computers and electronics, and, most recently, zero-emission vehicles.
Impacts on trade and ports
California engaged in nearly $675 billion in two-way trade in 2024, supporting millions of jobs throughout the state. The impacts of the President’s tariff policies are already having an outsized impact on the state’s nation-leading ports, leaving California workers with fewer shifts unloading and transporting the goods. A decline of just 1% in cargo to the Ports of Los Angeles and Long Beach would wipe away 2,769 jobs and endanger as many as 4,000 others, one study found.
The increased costs associated with these tariffs will also have ripple effects throughout the supply chain, impacting not only longshoremen but also truckers, manufacturers, and retailers throughout the state and nation.
Impacts on the state budget
California is expected to lose a staggering $7.8 billion in tax revenue from personal income tax, capital gains, and corporate revenue as a result of the tariffs’ impact on California taxpayers. This extraordinary loss of essential revenue is exacerbated by the unpredictable and chaotic approach to imposing tariffs, which has made it extremely difficult for California and its agencies to effectively budget, plan for the future, and properly serve Californians. The harms from the current tariffs and their uncertain nature are reflected in California’s recently downgraded economic projection for the 2025-2026 Governor’s Budget. Specifically, this forecast projected increased unemployment and near-term inflation and considerably downgraded projected wage and business income growth, as well as job and personal income growth. These fiscal impacts from tariffs have immediate and devastating effects on California’s budget, which in turn could yield deep cuts to the state’s programs and services.
Impacts on state services
Additionally, many agencies, including the California Department of Health Care Services and California Department of Public Health, contract with vendors to purchase critical goods which were manufactured outside the United States, including over $8 billion in pharmaceuticals, $300 million in diabetes related supplies, $3 million in pediatric and adult flu vaccines, $700,000 in disease testing kits, among other critical goods. The President’s tariffs confront California with significantly increased costs to retain access to these essential goods through its contracts.
In addition to the forthcoming preliminary injunction, California will also be filing an amicus brief as early as today in the Court of International Trade in the case Oregon v. Trump, a case challenging President Trump’s illegal imposition of so-called “emergency” tariffs.
—Submitted
Thompson, Ways & Means Democrats
Fight for Hardworking Americans
Against Tax Breaks for Billionaire Donors
Washinton D.C.
Ways & Means Tax Subcommittee Ranking Member Mike Thompson (CA-04) concluded an over 17 hour markup of the Congressional Republicans’ tax bill, which extends the President’s 2017 tax breaks for billionaires, and, says Thompson, adds $5 trillion more to our national debt, and leaves working families behind. Thompson says Republicans will combine these tax breaks for their billionaire donors with their bills to slash health care and nutrition funding in order to pay for it.
“Congressional Republicans have been clear since the beginning: They intend to hand tax breaks to their billionaire donors like Elon Musk and they are slashing everyday Americans’ health care and nutrition support to pay for it,” said Thompson.
“Our tax code should be focused on supporting hardworking Americans, not running up our debt by trillions to give tax breaks to people who don’t need the help.
“My colleagues and I fought to reinstate the State and Local Tax Deduction, prevent cuts to 13.7 million Americans’ health care, revive the Child Tax credit, prevent handouts to the super wealthy who don’t need the help, and protect my green energy tax credits which are creating jobs and lowering energy prices for Americans. It’s a shame that our colleagues on the other side of the dais voted against all of these sensible measures.
“The fight isn’t over. Until Congressional Republicans work with us to develop a bill that reins in our national debt and helps put hardworking Americans ahead, we will continue to fight their extreme policies every step of the way.”
—Summitted
Lake County
City of Lakeport Announces Water Pipeline
Replacement Project on Lakeshore Boulevard
The City of Lakeport Utilities Department continues its essential water infrastructure improvement project along Lakeshore Boulevard.
The Water Pipeline Replacement Project is currently underway. It is designed to replace aging water mains and service connections, improving system reliability, reducing the risk of leaks, and preparing the corridor for future upgrades.
Project Location:
Lakeshore Boulevard, from Giselman Avenue to Beach Lane
Project Timeline:
Phase 1: Lakeshore Blvd. (Giselman Avenue to Lange Street)
May 13 – May 23, 2025
Phase 2: Lakeshore Blvd. (Lange Street to Beach Lane)
May 27 – June 13, 2025
During construction, road closures will be in effect within active work zones. Motorists are advised to follow posted detour signs, drive slowly, and use caution when traveling near construction crews and equipment. The City urges residents to plan for minor delays, equipment noise, and possible dust throughout the duration of the work.
“This project represents a key investment in the long-term sustainability of our water infrastructure,” said Utilities Director Paul Harris. “We appreciate the community’s patience as we work to improve water service and prepare the area for resurfacing.”
For More Information:
Please contact Paul Harris, Public Works Department, at 707-263-3578.
—Submitted
Sacramento County
Despite ‘Trump Slump,’ Governor Newsom’s revised budget
delivers on housing, education, water, and jobs
Governor Gavin Newsom today released his May Revision proposal for the 2025–26 state budget, putting forward a balanced plan that strengthens California’s future — despite economic disruptions caused by federal instability. While adjusting for a projected $11.95 billion shortfall driven by a “Trump Slump” — tariffs disruption, market volatility, and a decline in international tourism that have directly resulted in a staggering $16 billion estimated hit to the state’s revenues — and health care cost pressures, the Governor’s proposal remains focused on forward-looking investments in housing, education, and infrastructure, while curtailing unsustainable spending.
More housing, faster
As part of his revised budget, the Governor is proposing a sweeping legislative package to slash red tape, align permitting timelines, and unlock faster, smarter housing development. The proposal streamlines Coastal Commission approvals to match the timelines of other permitting agencies, prioritizes infill and transit-oriented development to reduce toxic pollution and vehicle miles traveled, and support for incorporating pending legislation that would reform CEQA for infill housing and other development projects, along with a housing and infrastructure bond to build more homes, faster.
Lower drug costs and reproductive freedom
California is shining a light on the middlemen who inflate prescription drug prices, while protecting access to essential medications, including abortion pills. The Governor’s revised budget leads efforts to license and regulate Pharmacy Benefit Managers (PBMs) for the first time, increasing transparency and accountability in the pharmacy supply chain. It also expands CalRx’s authority to procure brand-name drugs and respond to politically motivated supply disruptions, helping shield access to critical medications like mifepristone.
Securing water for all of California
With climate extremes intensifying, the Governor is fast-tracking modernization of the State Water Project through the Delta Conveyance Project. His proposal streamlines permits and reduces litigation delays to accelerate construction, while protecting water access for 27 million Californians and preparing for a future marked by more severe droughts, floods, and climate volatility
Students and families
The Governor’s revised budget continues transformational investments that make education more accessible. Universal transitional kindergarten is now fully funded for all four-year-olds. Free school meals remain available to every student, and expanded before school, after school, and summer programming will benefit children across the state. The budget also invests $545 million in literacy programs to boost reading outcomes, with a strong focus on supporting multilingual learners.
Public safety and veterans
The Governor’s revised budget also includes historic funding in firefighting and emergency response to match escalating wildfire risks, and a tax cut for military retirees, recognizing their service and supporting their financial security.
Smart government, Cap-and-Invest
The budget reflects the Governor’s push for a more effective government — including a new state agency to better coordinate housing and homelessness programs, and continued progress on California’s Cap-and-Invest program to fund major climate projects like high-speed rail and a utility credit that will put up to $60 billion back into the pockets of Californians through 2045.
—Submitted
