By Shane LaVigne, LaVigne Stategies
STATE AND FEDERAL TENSIONS
California and the federal government are facing growing friction across several fronts—raising concerns for law enforcement, public agencies, and working families alike. These tensions are important to highlight because they directly implicate the federal government’s funding to California, threatening core services and programs our members depend on.
- Federal Budget Cuts Threaten California Projects
A new federal “megabill” has slashed clean energy tax credits and infrastructure support, threatening dozens of California-based projects. In response, Sacramento leaders are weighing major environmental rollbacks—including CEQA reforms—to keep development moving. - Immigration Enforcement Clashes Intensify
A federal judge recently halted indiscriminate ICE raids in seven California counties, citing racial profiling and civil rights concerns. The ruling is seen as a win for local control and due process protections. - Health and Nutrition Programs at Risk
The federal budget significantly cuts SNAP and Medicaid funding. For California, this could mean devastating impacts on food security and health care access—particularly for vulnerable communities in the Bay Area and Central Valley. - Governor Floats Bold Retaliation
In a rare move, Governor Newsom has publicly threatened to withhold federal tax transfers if the Trump administration proceeds with cuts to university funding and high-speed rail projects. Sacramento is bracing for potential legal showdowns.
BUDGET UPDATE
Despite a projected $12 billion deficit, the Governor and Legislature have passed a $322 billion state spending plan for FY 2025–26. The budget avoids broad-based tax increases and maintains funding for education, Medi-Cal, school meals, public safety, and local services by relying on a mix of reserve drawdowns, internal borrowing, and delayed spending. However, there are already credible rumors that the Legislature will be called back into a special session immediately following adjournment to address ongoing budget pressures—potentially requiring deeper cuts later this year.
LEGISLATIVE UPDATE
AB 322 (Ward) – Oppose Unless Amended
AB 322 seeks to restrict the collection of “precise geolocation data” by businesses. Under the bill, data could only be retained for 30 days and would be accessible to law enforcement only with a court order. While this may appear to balance privacy concerns, it creates major risks for public safety—particularly when crimes or missing person reports arise after the 30-day data window has expired.
CSLEA’s Position:
We’ve proposed amendments to:
- Clarify two distinct justifications for data collection (service delivery and investigation of illegal activity)
- Remove the 30-day deletion mandate
- Maintain court order requirements only for federal and out-of-state agencies, not California law enforcement
Should these changes be adopted, CSLEA would remove its opposition.
AB 564 (Haney) – Support
AB 564 would freeze California’s cannabis excise tax at 15%, blocking a scheduled hike to 19%. This move is widely supported across the legal cannabis sector as it offers predictability, protects licensed operators from being priced out of the market, and helps reduce the illicit trade.
Status:
Unanimously approved in the Assembly Revenue & Taxation Committee; now pending in Appropriations.
