Xavier Becerra

California's carbon market, the cap-and-invest program created under AB 32, underwent major changes this year. A contentious reauthorization is projected to roughly halve annual auction revenue while opening billions in free permits for polluters investing in decarbonization. Gov. Gavin Newsom also announced plans to link the state's market with Washington's and eventually Quebec's, expected to raise credit prices and take effect next year. Critics say the changes push California's 2030 and 2045 emissions targets further out of reach, while regulators and some economists call the program still functional. The next governor will appoint air board members, oversee linkage rulemaking, and shape climate policy; neither gubernatorial candidate has made it a campaign focus.

President Donald Trump, speaking at a rally in Grand Island, Nebraska, said higher gas prices from the Iran conflict were "a small price to pay for keeping the world safe," adding that Iran could "take out" Los Angeles or San Diego and calling it "a very small price to pay" that would be "over with very soon." The crowd cheered. The remark came roughly a month before the midterm elections.

California officials responded swiftly. Governor Gavin Newsom called the comment "dangerous -- if not treasonous," directed the State Threat Assessment Center to monitor for threats against California, and later escalated by calling Trump "mentally ill" and demanding invocation of the 25th Amendment. Los Angeles Mayor Karen Bass told Trump to "keep LA out of your damn mouth," and gubernatorial candidate Xavier Becerra accused him of treating Californians' lives as "a punchline." San Diego Mayor Todd Gloria and other mayors, along with Rep. Derek Tran, condemned the remarks. The White House and allies countered that Trump's full remarks were being taken out of context, arguing he meant Iran could strike those cities only if it obtained nuclear weapons, not that the U.S. should allow such an attack.

Democrat Xavier Becerra and Republican Steve Hilton met on CNN for a debate ahead of California's Nov. 3 gubernatorial election, moderated by Jake Tapper and Dana Bash. The exchange was widely panned as lackluster, with both candidates drawing criticism for weak performances. Becerra, the former U.S. Secretary of Health and Human Services, repeated claims that he has "fought all my life to defend immigrants," a record critics dispute given his quiet stance during the Obama administration's deportation policies. He also accused Hilton of wanting to "welcome immigrants who look like you, but deport immigrants who look like me," a remark Hilton called "disgraceful."

Hilton, a former Fox News host who received Donald Trump's primary endorsement, avoided directly answering whether he'd direct state law enforcement to assist federal immigration enforcement. Polling from the UC Berkeley Institute of Governmental Studies shows Becerra with a substantial lead and more favorable overall ratings than Hilton heading into the final weeks of the race.

California's High-Speed Rail Authority secured only one of the several legislative priorities it said were needed to keep the Merced-to-Bakersfield rail segment on schedule. Gov. Gavin Newsom signed Senate Bill 1425, letting the authority issue permits to utilities, local governments and developers on authority-controlled land, but broader proposals—faster environmental reviews, expedited court dispute resolution, sales tax exemptions on construction materials, and new authority to tap local tax revenue near the rail line—stalled or were never formally introduced. Local officials strongly opposed the tax-revenue idea, calling it a raid on funds needed for services and road repairs.

A separate bill from Sen. Henry Stern to let the authority spend more state climate funds outside the Central Valley segment died in committee, as did a utility-relocation bill from Sen. Scott Wiener. The authority and lawmakers traded blame over the losses. The project, now estimated to cost $126-231 billion with full buildout by 2040, depends on $1 billion in annual state carbon-auction funding that could shrink under pending climate rule changes, adding further uncertainty to its timeline.

Democrat Xavier Becerra and Republican Steve Hilton met Wednesday, Sept. 30, in what is expected to be their only one-on-one debate before the Nov. 3 general election to succeed term-limited Gov. Gavin Newsom. CNN hosted the hour-long, prime-time debate in Los Angeles, with Jake Tapper and Dana Bash moderating.

The two clashed over the state's direction, with cost of living emerging as the top issue for voters. Becerra, a former congressman, state attorney general and Biden administration health secretary, pitched himself as the experienced choice, while Hilton, a Trump-endorsed former Fox News host, blamed Democratic leadership for California's high costs.

Polls show Becerra leading by wide margins, reflecting the state's heavily Democratic voter registration. The debate is seen as low-risk for Becerra but a make-or-break moment for Hilton, whose embrace of Trump's endorsement remains a liability with California voters. Becerra faces scrutiny over housing costs and unresolved homelessness under Democratic governance. No Republican has won the governorship since Arnold Schwarzenegger, and Hilton faces a steep climb in a state that hasn't elected one in 20 years.

Healthcare affordability has emerged as a central issue in California's governor's race, but Democrat Xavier Becerra and Republican Steve Hilton have offered few specifics on cost or funding. Becerra, who calls himself the "healthcare governor," touts his record defending the Affordable Care Act and a major antitrust settlement against Sutter Health as attorney general. He pledges to pursue universal coverage, prioritize primary care, and continue covering Californians affected by federal Medicaid cuts, but has not explained how he would pay for it, even as state officials warn the cuts could cost California up to $30 billion annually.

Hilton's "Working Class Healthcare Guarantee," unveiled last week, calls for price transparency, replacing part of Medi-Cal with health spending accounts, and a reinsurance program to stabilize premiums, though he could not estimate costs or savings. Both candidates support expanding low-cost drug programs. Becerra has raised over $33 million, including substantial healthcare industry donations, and leads polling by a wide margin heading toward their CNN debate.

Los Angeles Mayor Karen Bass and Councilwoman Nithya Raman appeared at separate forums hosted by nonprofit Hope the Mission, sharpening their debate over the city's approach to homelessness ahead of the mayoral race. Gubernatorial candidates Steve Hilton and Xavier Becerra were also invited, but only Hilton attended.

Raman criticized Bass' signature Inside Safe program as too costly and said she had repeatedly urged the mayor to rein in spending. She pledged that, if elected, she would order an audit of the city's homeless services in partnership with City Controller Kenneth Mejia. Bass acknowledged the program needs to cost less but defended its record, calling Raman's criticism dishonest and arguing that elected officials auditing one another creates a conflict of interest and risks a politicized process rather than independent oversight. Both candidates agreed the city needs greater direct control over homeless services, which have long been contracted out to the Los Angeles Homeless Services Authority.