Republican to Introduce Federal Bill Punishing States with High Gas Taxes

Last time we mentioned a call by California’s Senate Republicans for Gov. Newsom to convene a special legislative session to address high gasoline prices and respond to the impending shutdown of one of the state’s eight remaining gasoline-producing refineries. Recently, Congressman Kevin Kiley announced he is drafting a bill to reduce federal transportation funding for states with gas taxes above 50 cents per gallon. He framed the forthcoming legislation as an effort to punish California, which has the nation’s highest gas tax at nearly 71 cents per gallon. “This bill sends a clear message: states that overtax their citizens to compensate for inefficient spending should not expect unlimited federal support,” Kiley said in a statement. “If Sacramento wants Washington’s help, it should stop punishing drivers.” The bill would also impact Illinois, Washington, Pennsylvania and Indiana, which have gas taxes ranging from 54 to 66 cents per gallon. Kiley, whose congressional district was transformed from a safe Republican to an at-risk district, is looking at fellow Republican Tom McClintock’s seat, a much more Republican district. Kiley was also one of the six Republicans who voted with Democrats to repeal Trump’s tariffs on Canada.

Since Kiley is hinting at a run for Congress in the 5th Congressional District, Rep. Tom McClintock (R-Elk Grove) fired a return volley at his northerly neighbor. He announced he had won the backing of the local GOP committees, which comprise 97% of the population in his district, drawing an early line that a primary challenge from Kiley will be an uphill battle. [Politico]

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Of the $183 Million Raised Nationwide for 2025 Ballot Measures, 94% Went to California Proposition 50

In 2025, campaigns supporting and opposing 30 statewide ballot measures in nine states raised $183.15 million. Ninety-four percent of that fundraising was either for or against California Proposition 50, which authorized the state to use a new congressional district map.

Here’s a closer look at ballot measure campaign finance from 2025 now that the final reporting deadlines have passed.

Campaigns supporting and opposing Proposition 50 raised $172.7 million, with $124.9 million going to PACs supporting the proposition and $47.7 million to PACs opposing it.

Top donors supporting the ballot measure included the House Majority PAC ($16.5 million) and Fund for Policy Reform ($10 million). The top donors opposing the measure were Charles Munger, Jr. ($36 million) and the Congressional Leadership Fund ($5 million).

Since 2015, California Proposition 50 has been the most expensive ballot measure in an odd-numbered year. The second-most-expensive odd-year ballot measure since 2015 was Maine Question 1 in 2021. In that election, proponents and opponents raised a combined $99.9 million.

New Report: National Debt Outlook Gets Worse as Interest Costs Exceed $1 Trillion Annually

Today, the Congressional Budget Office (CBO) updated its budget and economic projections, which show that the United States remains on an unsustainable fiscal path — and unfortunately the national debt outlook worsened from last year’s projections.

Revenues over the 10-year period are lower than projected for 2025 due to the One Big Beautiful Bill Act (OBBBA). In addition, mounting debt and higher interest rates have pushed up interest costs, which threatens to crowd out other priorities. Finally, longstanding demographic pressures continue to weigh on the fiscal outlook. Taken together, CBO’s report should serve as an urgent warning for lawmakers about the need to address the debt and get the United States on a stronger fiscal path.

You can read the report here.

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Moderate vs. Progressive Race in Valley Heats Up

California's 22nd Congressional District, near Bakersfield, is one of the handful of districts Democrats hope to pick up during the 2026 midterm elections, where a conservative leaning, mostly Hispanic populace voted for Trump in 2024.

But two Democratic candidates making a bid for the seat highlight the rift among the party over how best to oust the district's GOP incumbent, writes CalMatters' Maya C. Miller.

The labor union SEIU California, several California legislators, and the political action committee Emily's List support Assemblymember Jasmeet Bains. The Bakersfield Democrat and physician is one of the more moderate members of her party in the Legislature and was the only Democrat to vote against the plan to fast-track the special election for Proposition 50.

Meanwhile, leaders of the district's local county Democratic Party, the Working Families Party, and U.S. Sen. Bernie Sanders of Vermont have endorsed Randy Villegas, a political science professor. Though new to politics, Villegas backs progressive policies, including Medicare for All and raising the hourly minimum wage to $25. Story

Smart Wearables: Bridging the Gap Between Workplace Safety and Productivity

• Communication-enabled wearables integrate two-way radio and cellular technology into personal protective equipment to enhance workplace safety through hands-free connectivity.
• These devices utilize bone-conduction technology and noise-canceling microphones to ensure clear communication in loud industrial environments.
• Real-time audio alerts and GPS tracking allow safety managers to monitor worker locations and respond immediately to potential hazards.
• By reducing the need for hand-held devices, these wearables help prevent distractions and accidents during complex tasks.

More

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More on Lori Chavez-DeRemer

Taxpayers paid nearly $100,000 to resolve an employment discrimination claim that arose from the former congressional office of Labor Secretary Lori Chavez-DeRemer, according to a report from the Office of Congressional Workplace Rights.

The OCWR annual report lists the amount of the award or settlement — $98,650 — and that it was tied to a part of federal statute that bans discrimination based on a worker’s race, color, religion, sex, national origin, disability status or age. The report was uploaded to the office’s website.

It’s the largest award or settlement from a House office since at least 2019, according to past reports, and the secretary’s was the only House office to have an employment discrimination claim payment in 2025.

Awards and settlements that resolve claims under a law are paid from a Treasury Department account that receives appropriations for that purpose, according to a Congressional Research Service report.

The report does not indicate whether Chavez-DeRemer, an Oregon Republican whose one term ended Jan. 3, 2025, was involved in the conduct related to her congressional office.

An internal investigation that sidelined her chief of staff, deputy chief of staff, and a member of her security detail hasn’t tarnished Chavez-DeRemer’s star status in the White House. A month after the New York Post broke the story, Chavez-DeRemer’s standing with the White House remains secure.

"I don’t get the sense from anybody that anybody gives a shit,” a person close to the White House, who requested anonymity to discuss the administration's thinking, told POLITICO. “This has not drawn the ire of anybody, like, 'Oh my god, she’s a problem, we have to deal with her.' I think as long as it stays contained, it’s fine."

Another Republican who regularly interacts with the administration on workforce issues said that the White House “seemed pretty nonchalant about the whole thing.”

Story

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California’s Retention Reform on Private Construction Projects

Retention has long been a contentious issue in California construction. Traditionally, owners withheld retention of 10% from each progress payment until completion, arguing it was necessary to ensure performance, quality and timely delivery. Contractors and subcontractors, however, often struggled with cash flow, payroll, and material costs while waiting months—sometimes even years—for withheld retention.

Recognizing the financial challenges contractors and subcontractors face, the California legislature passed Senate Bill 61, now codified under California Civil Code Section 8811 and effective January 1, 2026, limiting retention to 5% on private works of improvement, aligning with the public works standard in place since 2012. The law’s intent is clear—ease financial strain on contractors and subcontractors while still providing owners with security (albeit reduced) with respect to project completion. More

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Ouch, Thanks for Playing in Santa Clara

Seahawks quarterback Sam Darnold is being charged a 'jock tax,' which requires him to pay the State of California more in income taxes for his performance in Super Bowl LX than he earned from the game. Here's a look at the backwards tax approach for the athletes playing in the Golden State-hosted Super Bowl. Story

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Bonds for Research?

California lawmakers could ask voters in November to pass the largest single-purpose general obligation bond in state history, a proposal to fund research at California universities that would test not only the public’s appetite for borrowing, but the very idea of what kind of expenses a bond should be used to pay for in the first place.

When California has turned to bond measures in the past, it has done so almost exclusively to fund infrastructure. That’s because buildings usually last for decades, making long-term borrowing to pay off the loan with tax revenues a safe bet.

Only twice in recent memory has the state employed bond measures for research, authorizing $3 billion for stem cell research in 2004, after President George W. Bush blocked the use of federal grants for studying human embryonic stem cells, and approving $5.5 billion more for the same purpose in 2020.

The bond lawmakers are pushing at the Capitol now would cost $23 billion.

The bond, like the 2004 measure’s response to Bush, is in direct response to the policies of a Republican president, this time Donald Trump, and his cuts to scientific research funding. Spearheaded by state Sen. Scott Wiener, with the support of the University of California and UAW 4811, a union representing thousands of academic researchers, the bond would provide grants and loans from a state-backed foundation to universities and other research institutions to insulate them from federal funding cuts. The Trump administration has currently suspended $230 million in research funding to the UCs and another $160 million to the Cal State University system, launching several investigations into alleged antisemitism and other civil rights violations on campuses.

“This is really fucking important,” said Lorena Gonzalez, president of the California Labor Federation, at recent event in Sacramento boosting the bond proposal.

Already, nearly a third of the state’s Legislature, including multiple Republicans, have signed onto the proposal, which needs approval from a supermajority to reach Gov. Gavin Newsom’s desk. Many lawmakers were at the event at the Labor Fed’s downtown office space, where attendees helped themselves to wine and a cheeseboard while learning about projects from researchers at the UC, Stanford and USC paused by the Trump administration’s cuts.

To sweeten the appeal, Wiener added a new provision last month that would give the state a cut of licensing fees from inventions developed with bond money.

One potential competing bond would also benefit higher education: a more traditional infrastructure payout for the UC and CSU systems, a priority for both universities after they were excluded from a $10 billion school bond two years ago and have not benefited from a bond measure in 20 years.

Assemblymember David Alvarez, who is carrying that more traditional measure in the statehouse, said that using bonds for non-infrastructure purposes would be “a major conversation” for state leadership. “I'm not saying yes or no, but it's definitely something the governor needs to weigh in on whether he wants to use bonds in this way,” Alvarez said.

But the state had done it once before, when Bush was in the White House. This time, Alvarez said, “We also definitely need to acknowledge the federal threats, right? And so that's very real.” [Politico]

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Crypto Slumps

The deregulatory Trump bump has now been fully erased. Bitcoin tumbled below $65,000 as the unwinding of leveraged bets and broader market turbulence deepened a selloff that’s wiped out all of the gains since the crypto-friendly Republican returned to the White House.

The token fell as much as 11% Thursday to $64,944, the lowest since October 2024. The rout has erased nearly half of Bitcoin’s value since it reached a record four months ago and has spread to other tokens, related exchange-traded funds and companies like Strategy that hold vast sums of coins.

“The fear and uncertainty across the market is evident,” said Chris Newhouse, head of business development at Ergonia. “Without conviction-based buyers willing to lean into the selling, each wave of ETF redemptions and liquidation cascades.” He said that’s “amplifying the magnitude of each leg lower and reinforcing the defensive positioning that’s keeping organic demand on the sidelines.” [Bloomberg]

 

California Senate Republicans Call for Special Session on Gasoline Prices

California’s Senate Republicans on Wednesday called on Gov. Gavin Newsom to convene a special legislative session to address high gasoline prices and respond to the impending shutdown of one of the state’s eight remaining gasoline-producing refineries. Senate Minority Leader Brian Jones and his nine Republican peers sent a letter to Newsom with a list of policy proposals to address “the ongoing gasoline cost crisis and the impending gasoline supply emergency.” They blamed a “decades-long political and policy crusade against the oil and gas industry” for “an unprecedented cost and supply crisis” that could depress the economy and lead to government service cuts amid revenue declines. Newsom responded forcefully on social media, pointing out that California’s inflation-adjusted gasoline prices are cheaper today than they were when he took office in January 2019. “They are not serious about solutions, just looking for political points,” Newsom wrote about the Republican senators. [Politico]

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Senator Drops Bill to Restore PAGA

State Senator Scott Weiner (D-San Francisco), anxious to secure labor-fed money for his race to Congress, pressed ahead with his Senate Bill 310.

SB 310 would have undermined the 2024 PAGA Reform deal, which was unanimously approved in both houses mere months earlier. SB 310 would have been used as leverage to secure higher settlements in class action lawsuits. Existing penalty statutes, intended only for willful or intentional violations, are among the most abused in wage and hour litigation. Attorneys always plead that alleged violations were willful or intentional. There is no reason not to include these penalties. Employers see this in every single case with other penalty statutes, such as Labor Code Sections 203 and 226. Employers often face penalty demands under those statutes for tens of millions of dollars, regardless of the facts of the case, with the penalties demanded as much as forty times the alleged harm. Because wage and hour claims always settle, these penalty statutes are used as leverage to secure higher settlements.

SB 310 would have circumvented early resolution processes established in the PAGA Reforms, including a process specifically designed for small businesses that has already been used by dozens of them. No early resolution process would exist under SB 310.

SB 310 still evaded Labor Agency oversight. Since the 2024 PAGA reforms, the LWDA has finally begun cracking down on bad actors. It issued public letters to law firms, demanding that they refile hundreds of boilerplate, copy-and-paste cases. No notice to the LWDA is required under SB 310.

As Weiner struggled to find enough moderate Democrats (I cringe when I write that) to get his bill out of the Senate before this week’s deadline, he finally relented and called to announce he was dropping the bill. One down, 2,000 more to go.

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40-Year PLA

A Silicon Valley–backed real estate venture and major labor unions announced what they’re calling the largest construction labor agreement in U.S. history, according to POLITICO.

It’s organized labor’s foray into plans to build a new city in Solano County, which is supported by tech luminaries like Marc Andreessen, Reid Hoffman, and Laurene Powell Jobs. California Forever, the firm behind the proposal, inked a 40-year deal with the Napa/Solano Building Trades Council and the Northern California Carpenters Union. The agreement covers all of the company's nearly 70,000 acres and requires that the majority of the project's construction be performed by union labor.

The infrastructure plans include “America’s largest advanced manufacturing park,” according to a California Forever press release, along with commercial, office, retail, defense, and energy projects. According to the Bay Area Council Economic Institute, two of the city’s planned projects would generate more than 17,000 direct construction jobs annually in Solano County over the life of the agreement, with average annual compensation of about $108,000.

Yeah, I wonder how soon we’ll see that construction commence.

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'Doomsday Clock' Advances To 85 Seconds till Midnight

We’re closer than ever to destruction as Russia, China, the U.S., and other countries become “increasingly aggressive, adversarial, and nationalistic,” according to the Science and Security Board of the Bulletin of the Atomic Scientists as it advanced its “Doomsday Clock” to 85 seconds till midnight.

They noted “national leaders and their societies have failed to do what is needed to change course. Consequently, we now move the Doomsday Clock from 90 seconds to 89 seconds to midnight—the closest it has ever been to catastrophe. Our fervent hope is that leaders will recognize the world’s existential predicament and take bold action to reduce the threats posed by nuclear weapons, climate change, and the potential misuse of biological science and a variety of emerging technologies.” Story

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Cox Calls for Prayer Again as Utah's Snowpack Nears Record Low

Utah Gov. Spencer Cox is again calling on people of all faiths to pray for precipitation, as the state's snowpack nears a low point in modern-era snowpack tracking. The governor called on people to pray for snow this weekend in an open letter. "We know that when people of all different faiths and backgrounds join together and plead for help from a higher power, remarkable things can happen," he wrote. "At the same time, we must do our part to conserve water." Story

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Ongoing Probe of C-DR

A member of Lori Chavez-DeRemer’s security detail has been placed on administrative leave as part of a widening investigation by the department’s inspector general. The IG’s office is investigating allegations that the security staffer and Chavez-DeRemer were engaged in a romantic relationship. The development was first reported by Bloomberg Law. The probe is also examining additional complaints made against some of Chavez-DeRemer’s top aides that they attempted to influence grantmaking.

This follows earlier suspensions of Chief of Staff Jihun Han and Deputy Chief of Staff Rebecca Wright, who were placed on administrative leave and later notified that they would be placed on investigative leave starting Jan. 26, according to the person granted anonymity to discuss the matter. They were initially placed on leave after a New York Post report earlier this month that alleged the two were involved in scheduling official events for the Labor secretary that benefited her personal travel plans. The Post also reported that the complaint, which POLITICO has not independently reviewed, accuses Chavez-DeRemer of an extramarital affair and drinking on the job.

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State Predicts 50% Rise in California Electricity Demand because of EVs, Data Centers

California’s peak electricity demand will rise by roughly half by 2045, driven by increases in electric vehicles, data centers, and building electrification, regulators predicted Wednesday. What happened: The California Energy Commission predicted in its California Energy Demand Forecast from 2025 to 2045 that on the low end, peak energy demand in the California Independent System Operator system will rise from about 46,500 megawatts to 66,000 MW, a 42 percent jump. The mid-range estimate is 53 percent, while the high-end estimate predicts an increase of about 74,900 MW, a 61 percent spike. The forecast, which shows electricity use soaring after decades of relatively stable demand, underpins state regulators' long-term energy planning. The CEC, California Public Utilities Commission, and CAISO draw from their figures when determining how much energy generation to require utilities to purchase, where to upgrade power lines, and how to prevent future blackouts. [Politico]

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Save Local Business Act Vote Pulled

In January, the Coalition for a Democratic Workplace and 74 other employer organizations sent a letter to all members of the House of Representatives in support of the Save Local Business Act, which would amend the NLRA and FLSA to clarify that an entity is only a joint employer if it directly and immediately exercises meaningful control over workers’ essential terms and conditions of employment. The letter explained, “This common-sense approach would provide much-needed clarity to the regulated community, ensure workers are appropriately protected under these statutes, and provide predictability to all stakeholders following years of policy swings with each change of administration.” A floor vote was expected, but unfortunately, it was pulled after several Republican members indicated they wouldn’t support the bill.

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CBS Report: Scathing Report on Democrats' Overwhelming Ignoring of State Auditor Recommendations

A new CBS News analysis confirmed what many taxpayers already suspected: California's Democrat-run Legislature ignores the watchdogs meant to prevent waste, fraud, and government failure. Despite repeated audits flagging serious breakdowns, lawmakers have failed to act on most recommended fixes. These are not partisan attacks; they are formal warnings from the state's own independent auditor. Yet in a Capitol dominated by a Democratic supermajority, accountability consistently takes a back seat to politics. Audits have warned about massive unemployment fraud, weak oversight of homelessness spending, unsafe drinking water in vulnerable communities, and gaps in public safety systems, and lawmakers still failed to follow through. The same problems resurface year after year while costs rise and trust erodes. It is not just bureaucratic dysfunction; it is a pattern of neglect made possible by one-party rule. Check out the CBS report here.

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Bills Moving in the Legislature

AB 805 (Fong) Career Apprenticeship Bridge Program. Establishes the Career Apprenticeship Bridge (CAB) Program to be administered by the Division of Apprenticeship Standards (DAS) for specific purposes, including to create pathways for preapprenticeship and apprenticeship programs for individuals beginning in high school and connecting with college-level apprenticeships.  1/27/2026 - In Senate. Read first time. To Com. on RLS. for assignment. WECA Position: Rec Support

AB 1198 (Haney) Public works: prevailing wages. It requires contractors to pay the new prevailing wage whenever DIR changes it. AB 2182 (Haney) of 2024 contained identical provisions to this bill. Governor Newsom vetoed the measure. AB 1140 (Daly) of 2013 was identical to this bill and was vetoed by Governor Jerry Brown. The bill exempts a housing development project if 100 percent of the units, excluding managers’ units, are restricted by deed, regulatory restrictions contained in an agreement with a governmental agency, or other recorded document, as affordable housing for persons and families of low or moderate income, as defined in Section 50093 of the Health and Safety Code. 1/26/2026 - Read second time. Ordered to third reading. WECA Position: Oppose

AB 1235 (Rogers) California State University: skilled and trained workforce requirement. Prohibits a contractor from being prequalified for, shortlisted for, or awarded a design-build contract with the Trustees of the California State University unless the contractor provides an enforceable commitment to the trustees that the contractor and its subcontractors at every tier will use a skilled and trained workforce to perform all work on the project or contract. Costs of an unknown, but likely significant amount, in excess of $150,000, to CSU for increased administrative costs to ensure compliance with new contracting requirements (General Fund). CSU may also incur potentially significant increased project costs, to the extent this bill increases bid prices or deters some contractors from bidding. In cases where a foregone contractor would have been the low bidder, CSU will pay more, and remaining contractors may face less competitive pressure when bidding on contracts, thus increasing contract costs. Additionally, to the extent this bill slows down the contract and procurement process, thereby jeopardizing time-sensitive funding sources or the use of low-dollar expeditious acquisition methods, there may be a corresponding fiscal impact to CSU. 1/26/2026 - Read second time. Ordered to third reading. WECA Position: Watch

AB 1439 (Garcia) Public retirement systems: development projects: labor standards. Establishes preconditions on public employee retirement system investments and financing of existing and new development projects in California. Requires STWF but not a PLA. 1/26/2026 - Read second time. Ordered to third reading. WECA Position: Watch

SB 33 (Cortese) Public contracts: claim resolution. This bill deletes the sunset date of a claims resolution process that enables contractors to seek public agency review of claims that arise during public works projects. 1/26/2026 - Read third time. Passed. (Ayes 39, Noes 0) Ordered to the Assembly. In Assembly. Read first time. Held at Desk. WECA Position: Support

SB 222 (Wiener) Residential heat pump systems: water heaters and HVAC: installations. Establishes limitations and requirements for local agency permitting of residential heat pump heating, ventilation, and air conditioning (HVAC) systems and heat pump water heaters. 1/26/2026 - Read third time. Passed. (Ayes 29, Noes 8) Ordered to the Assembly. In Assembly. Read first time. Held at Desk. WECA Position: Watch

SB 247 (Smallwood-Cuevas) State agency contracts: bid preference: equity metrics. This bill requires state agencies, in awarding contracts over $35 million using funds from the federal Infrastructure Investment and Jobs Act (IIJA), the Inflation Reduction Act of 2022 (IRA), or the CHIPS and Science Act of 2022, to provide a bid preference up to 10%, depending on the number of total contract labor hours performed by individuals residing in a “distressed area” or “disadvantaged community.” Opposed by various union construction organizations, who argue contractors and subcontractors covered by collective bargaining agreements are obligated to hire workers dispatched from union hiring halls, and there are limited circumstances under which they can reject those workers. This measure provides that to receive a 10% bid preference, contractors must adopt ‘equity metrics’ that include ‘having a required percentage of the workforce for the contract living in areas below the poverty line, in communities disproportionately affected by environmental pollution, or in regions with high unemployment and low-income concentrations.’ In practice, this means that for signatory contractors and subcontractors to receive the 10% benefit, their labor partners must agree to only dispatch workers from specific communities for state-funded projects. 1/27/2026 - Read third time. Passed. (Ayes 30, Noes 10) Ordered to the Assembly. In Assembly. Read first time. Held at Desk. WECA Position: Rec Support

SB 342 (Umberg) Contractors: unlicensed work. This bill permits a contractor to recover compensation for work performed if the person was a duly licensed contractor at the time that the contract for the work was executed and during the portion of times of the performance of the act or contract for which they are seeking to recover, and limits the cause of action that a person who utilized an unlicensed contractor’s services may bring to recover compensation paid to the unlicensed contractor to the compensation paid for work performed during the time in which the contractor was unlicensed. 1/26/2026 - Read third time. Passed. (Ayes 39, Noes 0) Ordered to the Assembly. In Assembly. Read first time. Held at Desk. WECA Position: Support