Newsom warns USC: sign Trump directives and lose California funds
State & Politics
Governor Gavin Newsom drew a new battle line with the White House on Thursday, threatening to strip the University of Southern California of billions in state support if the school adopts a federal list of conservative campus mandates. The governor called the offer of “preferential access to federal grants” in return for freezing tuition and curbing diversity programs “extortion.”
Hours later, Newsom vetoed a bipartisan bill that would have set aside state homelessness funds for sober-living facilities, arguing existing guidelines already allow such spending. Supporters counter that the guidance is unclear and providers remain reluctant to proceed without explicit authorization.
At the Capitol, the governor also signed a pair of campaign-finance bills aimed at limiting billionaire influence and shielding election workers from intimidation, saying the measures “protect our democracy from manipulation.”
CalMattersHousing & Community
Millions of California homeowners will see smaller penalties from their neighborhood associations after a new law capped most HOA fines at $100. Backers say the change reins in boards that weaponize fees; some associations worry it weakens rule enforcement.
Advocates are criticizing local health agencies for declining to use their authority to inspect privately run ICE detention centers, even as detentions in the state jump 84 percent. Only San Bernardino County has performed limited food-safety checks this year.
And in San Francisco, officials confirmed that a long-planned Mission Bay elementary school will open next fall despite district enrollment declines, while nearby Academy High School will be merged into Wallenberg High as part of broader consolidation plans.
CalMattersTech & Business
Silicon Valley leaders are weighing the costs of the region’s uneasy embrace of “Trump 2.0.” A deep dive from CalMatters details how tariffs, new H-1B visa fees and a 15 percent federal cut of AI-chip sales to China are reshaping the Bay Area’s tech economy. Analysts warn the mix could erode the U.S. talent pipeline.
The upheaval comes as Palo Alto Networks nearly saw its record \$25 billion bid for CyberArk collapse before the cybersecurity giant doubled a breakup fee to keep the deal alive, newly released filings show. Elsewhere, Google disclosed a fresh round of layoffs affecting more than 50 Sunnyvale workers.
Signs of recovery surfaced in hospitality: a judge approved the sale of the landmark Hilton Union Square and Parc 55 hotels to investors Newbond Holdings and Conversant Capital, signaling renewed confidence in San Francisco’s tourism market.
CalMattersEducation & Schools
Nine Bay Area campuses landed in the top-100 of Niche’s annual list of the nation’s best private high schools, with San Francisco’s Lick-Wilmerding entering the elite group for the first time, according to new rankings.
The Mission Bay School will open with pre-K and kindergarten classes in August, the district said, fulfilling a two-decade promise to bring classrooms closer to the fast-growing neighborhood.
Meanwhile, at least 20 California teachers face discipline over social-media posts about slain activist Charlie Kirk, raising fresh questions about free-speech limits for educators.
CalMattersBay Area Weather
Skies clear and temperatures rebound after a light mid-week front:
- Today: Mostly sunny, breezy afternoon, high around 68°F; a stray morning sprinkle can’t be ruled out.
- Weekend: Sun dominates. Highs climb to the low 70s Saturday and Sunday with pleasant, crisp nights in the upper 50s.
- Next week: A gentle warming trend nudges daytime readings into the low-to-mid 70s through Wednesday before another cool push late week.
No heat spikes or significant rain are on the horizon—ideal conditions for outdoor festivals across the region.