INTERNACIONAL
California faces unlikely tax revolt amid billions in illegal immigrant healthcare costs
As California grapples with soaring Medi-Cal costs — including billions spent on healthcare for immigrants without legal status — Gov. Gavin Newsom and Democratic lawmakers have backed a revised health-plan tax in response to new federal restrictions, a move critics warn could shift more costs onto privately insured Californians.
The tax has united an unlikely coalition of doctors and health insurers against him, with critics warning it could make California even more expensive.
To preserve billions in Medi-Cal financing after Washington tightened the rules governing health-plan taxes used to draw federal matching funds, Newsom backed a redesigned tax that would raise the levy on private health plans beginning in 2027 if federally approved, potentially increasing premiums for their customers. Providing healthcare to illegal immigrants cost California an estimated $12.4 billion in 2025, the Associated Press reported.
When asked if expanding coverage to illegal immigrants created a need for California to raise taxes, Brian Blase, president of the right-of-center Paragon Health Institute, answered with a strong «yes.»
DR. OZ UNVEILS MEDICAID OVERHAUL, CLAMPS DOWN ON $2B FOR ILLEGAL IMMIGRANTS AND MANDATES WORK FOR ABLE-BODIED
«The One Big Beautiful Bill Act limited California’s ability to target the tax just on Medicaid insurers, so California is proposing to raise the health insurance tax on people that have private coverage … the estimates are that would increase insurance for families by $400 a year,» he told Digital. «That is just because California doesn’t want to deal with its unsustainable spending … there are many people on the program who are not eligible for the program, and that is not even accounting for the fact that California has expanded Medicaid to all unauthorized immigrants in the state.»
California’s attempt to shore up Medi-Cal’s bottom line follows federal changes that will prevent the state from continuing its existing health-plan tax structure after 2026, forcing a redesign of a financing mechanism that has generated billions of dollars for the program.
The California Medical Association and California Association of Health Plans are suing to block the tax increase, not on the grounds that it benefits illegal immigrants, but over allegations that the measure violates voter-approved limits on health-plan taxes and restrictions on how the resulting revenue can be spent. The duo uniting to challenge the tax is notable because doctors and insurance companies often find themselves on opposite sides of healthcare debates.
Proposition 35, the initiative in question, limits how much California can tax commercial health-plan enrollment, constraining the state’s options as it tries to comply with new federal rules governing the much higher tax previously imposed on Medi-Cal enrollment. The proposition was passed with overwhelming support from Californian voters.
NEWSOM BEGS CALIFORNIANS TO VOTE ‘NO’ ON BILLIONAIRE’S TAX IN FACE OF MASS EXODUS, PITCHES NATIONWIDE TAX HIKE
«California voters passed Proposition 35 and made it law. The state does not get to ignore that law simply because following the law is inconvenient,» California Medical Association CEO Dustin Corcoran said in a statement.
Health insurers warn the cost of the revised tax could be passed directly on to consumers through higher premiums, estimating an increase of about $100 per person per year. A family of four, for example, could face an additional $400 annually on top of normal rate increases.
Newsom spokeswoman Tara Gallegos said that the governor maintains that his tax increase is not rendered illegal by the proposition.
«The state disagrees with their claims, and we believe the courts will too,» she told Digital of the lawsuit.
H.D. Palmer, deputy director for external affairs at the California Department of Finance, explained to Digital that the new tax measure was designed to comply with the One Big Beautiful Bill Act. According to Palmer, the state’s current health tax regime may conflict with the bill and that the state is submitting a proposal with two tracks — one that is similar to the current taxing scheme but might run afoul of federal law and another that conforms to the One Big Beautiful Bill Act by shifting costs toward private plans.
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«If the federal government declines to approve the tax that is structured similar to the existing [health plan tax], Proposition 35 may then sunset per current law,» he added.
California has faced a mass exodus of people and businesses over the past decade, with the cost of living being one of the chief reasons individuals cite for leaving the Golden State. One analysis found that almost 10 million people moved from California to other states between 2010 and 2024, while just over 7 million moved to California from elsewhere in the country during the same period.
The state’s exodus has raised concerns about its financial outlook, with the departure of higher-income residents potentially reducing tax revenue for a state heavily dependent on income taxes.
california, politics, gavin newsom, health care healthy living, taxes
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At least 139 migrants, including 15 children, died when a boat carrying more than 300 people capsized off the coast of Djibouti, according to the United Nations’ migration agency.
The vessel was carrying 305 people from Djibouti toward Yemen when it capsized Thursday night or early Friday near Guhere, north of Obock, the International Organization for Migration (IOM) said Sunday.
At least 84 people remained missing as of Sunday, while more than 80 survived. All of the survivors were Ethiopian nationals, according to the agency.
«No one gets into a boat like that unless they believe there is no other safe way,» IOM Director General Amy Pope said in a statement.
DRAMATIC FOOTAGE SHOWS ALLEGED NARCO BOAT ERUPT IN FIREBALL DURING US MILITARY STRIKE
At least 139 migrants, including 15 children, died when a boat carrying more than 300 people capsized off the coast of Djibouti. (Alexandre Coissac/IOM via AP)
«We cannot keep treating these deaths as normal. Safe and legal pathways save lives. I am asking governments and donors to act before the next boat goes down,» Pope added.
The confirmed death toll includes only victims buried by authorities in Djibouti and could rise as additional bodies are verified, IOM Chief of Mission in Djibouti Alexandre Coissac told The Associated Press.
Some victims were buried by fellow migrants but will not be added to the official count until authorities can verify the bodies, the outlet reported.
BOATER WAS DRUNK, DANCING BEFORE BOSTON HARBOR CRASH THAT KILLED 24-YEAR-OLD FORMER SOCCER PLAYER, DA SAYS
At least 84 people remained missing as of Sunday, while more than 80 survived. (Alexandre Coissac/IOM via AP)
«What is terrible is that they were buried with no names, in a common grave, like in a war situation,» Coissac said. «They all have a mother, a father, and we may never learn what happened.»
Coissac said the boat sank shortly after departing on the evening of Oct. 8, «mainly because it was overcrowded.»
Survivors were taken to an IOM rescue center in Obock, where they were receiving medical treatment after swallowing seawater as well as psychological support, according to The Associated Press.
FEDERAL AGENTS INTERCEPT BOAT CARRYING 14 ILLEGAL ALIENS BEFORE UNLOADING IN WEALTHY COASTAL ENCLAVE
The crossing from the Horn of Africa to the Arabian Peninsula is a common but dangerous route for migrants seeking work in Gulf countries. (Alexandre Coissac/IOM via AP)
«They’re all in a state of shock,» Coissac said.
The crossing from the Horn of Africa to the Arabian Peninsula is a common but dangerous route for migrants seeking work in Gulf countries.
More than 900 migrants died or went missing along the route last year, according to the IOM.
The Associated Press contributed to this report.
world, africa, disasters, united nations
INTERNACIONAL
Houthis kill 14 at Saudi airport as expert warns of ‘rapid targets’ amid Middle East war
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Iran-backed Houthis launched a series of attacks on Saudi Arabian airports through Sunday, reportedly killing at least 14 people, including an American, and injuring more than 300 others, according to reports.
The attacks heightened fears of a wider Middle East war as regional experts warned of «cross-domain escalation» amid heightened tensions over Washington’s September actions against Iran’s aviation sector.
The Houthis claimed responsibility for earlier attacks on King Khalid International Airport in Riyadh, while U.S. officials blamed the Iran-backed group for Saturday’s strike, which reportedly killed 13 people and injured more than 300.
SAUDI FOREIGN MINISTER WARNS HOUTHI THREAT GOES GLOBAL AS TRUMP HOLDS FIRE
Smoke and flames rise from King Khalid International Airport after Yemen’s Iran-backed Houthis said they attacked the airport, in Riyadh, Saudi Arabia, on Oct. 8, 2026. (Reuters)
Saudi Arabia’s civil aviation authority said another attack on Sunday killed a Pakistani resident and injured 11 others. Meanwhile, an airport in Dammam, in the kingdom’s Eastern Province, was also reportedly targeted by the Houthis.
«Cross-domain escalation by Iran and its proxies will continue to be a primary strategy,» Behnam Ben Taleblu, senior director of the Iran Program and a senior fellow at the Foundation for Defense of Democracies, told Fox News Digital on Sunday.
«The emphasis on aviation targets connects directly to the closing of Iran’s aviation sector and sanctions imposed on its commercial airlines under the U.S. maximum pressure campaign,» he warned.
RUBIO ACCUSES IRAN OF FLYING IRGC PERSONNEL INTO YEMEN AS HOUTHI THREAT ESCALATES
Smoke was reported near King Khalid International Airport, seen above, as regional tensions and Houthi attacks heightened security concerns in Saudi Arabia. (AFP via Getty Images)
The Houthis also renewed warnings Sunday, urging airlines, airport workers and travelers to avoid Saudi airports as Saudi Arabia vowed to retaliate for the deadly attacks.
Secretary of State Marco Rubio condemned Saturday’s attack, confirming that an American was among those killed and calling for an immediate end to the violence.
President Donald Trump, meanwhile, left open the possibility of U.S. involvement in Saudi Arabia’s military campaign against the Houthis, saying, «We may. We’re gonna look at it. We move very quickly.»
The escalation comes nearly three weeks after a senior Iranian official threatened to paralyze neighboring countries’ airports if they cooperated with U.S. efforts to restrict Iranian flights.
THE HOUTHIS AREN’T SOMEBODY ELSE’S PROBLEM. AMERICA CAN’T AFFORD TO LOOK AWAY
Mohsen Rezaei was named secretary of the Supreme National Security Council. A former Islamic Revolutionary Guard Corps general and member of the Expediency Discernment Council, as well as the secretary of the Supreme Council for Economic Coordination and the Iranian government’s Economic Committee, attends a ceremony at Ayatollah Ruhollah Khomeini’s shrine in southern Tehran, Iran, on June 4, 2026. (Morteza Nikoubazl/NurPhoto)
Mohsen Rezaei, secretary of Iran’s Supreme National Security Council, warned Sept. 23 that Iran would prevent neighboring countries’ airports from operating if they cooperated with Washington’s efforts to restrict Iranian flights, according to Reuters.
«This rapid targeting reflects earlier threats made by Iranian officials, including a veiled threat from the Secretary of Iran’s Supreme National Security Council, warning that U.S. sanctions on Iran’s aviation sector would lead to retaliatory threats against neighboring aviation infrastructure,» Taleblu said.
Iran has long supported the Houthis, but the extent of Tehran’s involvement in the latest airport attacks has not been independently established.
The escalation has also renewed scrutiny of reports that Russia has provided intelligence and technical assistance to the Houthis.
FOILED TERROR PLOT AT BOMBER BASE SIGNALS WIDER THREAT TO US MILITARY INSTALLATIONS: EXPERT
Yemen’s Houthi armed forces patrol as Yemeni prisoners loyal to the Houthis arrive in the capital of Sanaa on Sept. 12, 2026, after being released on the west coast where they had been held by Yemen’s Saudi-backed government forces. (AFP via Getty Images)
At a Sept. 1 House Foreign Affairs subcommittee hearing , lawmakers pressed experts on allegations that Russia is providing intelligence and technical support to the Houthis.
«Beyond offering diplomatic cover, there are persistent reports of Russian satellite collaboration, advisory support, and intelligence targeting assistance, as well as unproven allegations regarding select anti-ship systems.»
HOUTHIS ENTER US ‘KILL BOX’ AFTER SEIZING RED SEA ‘CORK,’ FORMER PENTAGON OFFICIAL WARNS
Yemen’s Iran-backed armed Houthi group has warned they will move to shutter the Bab Al-Mandeb Strait through missile-drone attacks if Gulf nations join the US-Israel war on Iran. (Mohammed Hamoud/Getty Images)
But he also linked the latest attacks to a broader military escalation as the Houthis expand their territorial control in Yemen.
«This surge did not occur in a vacuum,» Taleblu said. «Since April, the Houthis have made territorial gains and pushed back against Saudi forces despite a period of diplomatic lull.»
«Airport attacks allow Iran and its regional proxies to inflict pain on Arab states, Israel, and remaining U.S. forces,» Taleblu said.
world, saudi arabia, iran, terrorism, middle east, national security, foreign policy, bombings
INTERNACIONAL
Trump Russia deal could fuel Putin’s war, ex-NATO commander warns as Zelenskyy says ‘nyet’
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President Donald Trump’s efforts to reach a diesel agreement with Russia could provide Russian President Vladimir Putin with fresh revenue to fund his war against Ukraine while allowing Moscow to buy time through negotiations it has little intention of honoring, a former NATO commander warned Sunday.
Retired Gen. Philip Breedlove, former NATO supreme allied commander Europe and head of U.S. European Command, told Fox News Digital that Washington also risks undermining Ukraine’s war effort by striking a deal with what he called «the enemy.»
«And so we are cutting a deal with the enemy,» Breedlove said, warning that «all of this money will go into fueling Mr. Putin’s continued attacks in Ukraine.»
The Russian government said Saturday it had partially lifted a ban on diesel exports with immediate effect, following the new agreement between Putin and Trump for Russia to supply the U.S. and global markets, Reuters reported.
As previously reported by Fox News Digital, Trump’s package calls for the release of 300,000 tonnes of diesel «to the American and global marketplace,» followed by 500,000 tonnes in November and another 1 million tonnes afterward.
KATIE ZACHARIA HITS GROUND RUNNING, PROMISES TRUMP DIESEL DEAL DELIVERS CHEAPER GAS FOR AMERICANS
Ukrainian President Volodymyr Zelenskyy speaks during a briefing in Kyiv, Ukraine, Thursday, April 17, 2025. (AP Photo/Efrem Lukatsky)
The diesel agreement preceded Trump’s announcement Sunday of what he called an «energy ceasefire» between Russia and Ukraine, with the president saying both sides had agreed to halt attacks on energy infrastructure.
«Effective immediately, there is an ENERGY CEASEFIRE in the War between Russia and Ukraine. Both parties have agreed. Do not break it!» Trump wrote on Truth Social.
Ukrainian President Volodymyr Zelenskyy, however, indicated that Ukraine had not been informed of a finalized ceasefire agreement but expressed willingness to halt attacks on Russian energy facilities if Moscow reciprocated. He also accused Putin of repeatedly rejecting peace proposals and continuing strikes on Ukraine’s energy infrastructure.
«Ukraine has proposed many de-escalatory steps. Putin had one answer to all of them – ‘nyet,’» Zelenskyy wrote on X.
«We do hope that he will finally say something to America, Ukraine, and the entire world that will lead to a real and dignified peace,» he added.
Zelenskyy also said Russian forces had carried out more than 200 strikes on Ukraine’s electricity generation and transmission facilities over the past week, along with 17 strikes targeting gas and oil infrastructure.
He said the attacks had killed more than 150 people and wounded more than 700 over the past week.
Trump’s «energy ceasefire» announcement followed tension between Washington and Kyiv over Ukrainian drone strikes on Russian oil refineries, a component of Ukraine’s strategy to weaken Moscow’s ability to finance its military campaign.
UKRAINE TARGETS RUSSIA WITH OVER 1,000 DRONES, KILLING 2 AS MOSCOW HOLDS LAST DAY OF ELECTIONS
A view of Russian President Vladimir Putin in front of the Kremlin. (Reuters/Tom Szlukovenyi | Photo by Contributor/Getty Images | Fox News Digital)
Breedlove argued that Russia and Ukraine are pursuing different objectives, accusing Moscow of targeting Ukrainian civilians and critical infrastructure while describing Kyiv’s attacks on Russian energy facilities as an effort to disrupt the revenue sustaining Putin’s war.
«Russia is carrying on a campaign of what we call counter value. In other words, Russia is attacking the Ukrainian people and trying to force their society to separate themselves from their president, President Zelenskyy,» Breedlove said.
Breedlove also predicted Washington would pressure Zelenskyy to suspend attacks on Russia’s oil industry despite their strategic importance.
«What I expect will happen is the United States will force or try to force Zelenskyy to stop bombing the petrochemical business in Russia,» he said.
TRUMP’S DIESEL IDEA COULD HAVE UNLEASHED A PROBLEM AMERICANS NEVER SAW COMING
Overnight, Russia launched its largest aerial assault on Ukraine since the war started as fires burned in Kyiv on May 25, 2025. (Reuters/Gleb Garanich)
Trump has vehemently criticized Ukrainian strikes on Russian refineries, arguing that they are disrupting global diesel supplies and driving up costs for American farmers and ranchers.
Meanwhile, Treasury Secretary Scott Bessent defended the administration’s efforts to increase diesel supplies.
«We’re going to do it with all the legal authorities we have,» Bessent said Sunday on Fox News. «This is good for the American people, bringing these diesel prices down,» he said of the new deal.
Separately, appearing on ABC News’ «This Week,» Zelenskyy offered to organize Ukrainian elections if Putin agreed to a reciprocal 60-day ceasefire, although holding a vote would face legal and logistical obstacles under Ukraine’s martial law.
Breedlove also expressed deep skepticism that Putin would honor any such ceasefire, citing what he described as a pattern of Russian attacks following negotiations with Trump. «Russia has never kept a promise to this president in this war,» Breedlove said.
UKRAINE’S ATTACKS ON RUSSIA ARE PUSHING PUTIN CLOSER TO NEGOTIATING TABLE, TRUMP NATO AMBASSADOR SAYS
U.S. President Donald Trump (R) greets Russian President Vladimir Putin as he arrives at Joint Base Elmendorf-Richardson on Aug. 15, 2025 in Anchorage, Alaska. The two leaders are meeting for peace talks aimed at ending the war in Ukraine. (Getty Images/ Andrew Harnik)
«He’s never changed his expectations, and he’s never delivered on his promises. Three out of four of the big cases, the very next day or that same night after the president and Mr. Putin talked, Mr. Putin launched huge attacks in Ukraine,» Breedlove continued.
Breedlove also called for a tougher U.S. response.
«We now need an administration that leads from power. We say all the time, ‘strength through power,’ but when it comes to Russia, our demonstrated position is continued conflict through weakness,» Breedlove warned.
«He started this war. This war is to benefit Russia, and this war is to keep Mr. Putin in power. And our administration needs to tell him to stop.»
world, donald trump, vladimir putin, russia, ukraine, foreign policy, geopolitics, national security
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