The Brief

No sooner had Gov. Gavin Newsom cut billions of dollars in spending to close a budget deficit in June than California received an unexpected tax windfall, one that has people in the Capitol speculating about where the avalanche of money came from.

More corporate taxes than expected poured into state coffers this summer, with cash receipts exceeding forecasts by nearly $2 billion since April. An especially big surge came in July, and state officials and accounting experts think the extra receipts came from a small number of companies — most likely one or more Silicon Valley tech firms, with artificial intelligence chipmaker Nvidia a leading candidate.

The influx highlights a growing tension in California between its tendency to further regulate tech companies — the governor has signed six bills governing the use of artificial intelligence so far this year — and its reliance on them for tax revenue.

On a single day, July 16, the state received more than $800 million than expected in corporate tax payments, “by far its single biggest day of collections” for a July going back at least four decades, state deputy legislative analyst Brian Uhler told CalMatters. (He excluded 2020 because the pandemic delayed tax deadlines.)

This July, the Finance Department said it collected about $1.4 billion in corporate taxes, nearly three times the agency’s forecast of $500 million. In June, corporate taxes were $263 million above forecast, and in May, $752 million over. “The July overage was likely due to large payments by a small number of companies and may not necessarily be indicative of overall corporation tax revenue trends,” the department said in its monthly bulletin.

Tax records are confidential, and representatives from both the Finance Department and the Franchise Tax Board stressed that nobody at the state is allowed to discuss details or information from specific tax returns or payments.

But the July influx in corporate tax payments was likely related to changes in state tax rules adopted in June, according to state and accounting experts who spoke with CalMatters. The tax changes, intended to help close the deficit, include a suspension of a deduction businesses can claim to offset profit, called the net operating loss deduction, as well as a $5 million limit on how much businesses can claim for research and development and other tax credits.

It’s possible that companies expecting to have outsized profit realized they owed more in taxes and needed to make large estimated tax payments immediately after the changes were enacted, accounting experts said. Corporations that expect to owe taxes are required to make quarterly estimated tax payments and can incur penalties if the payments are late. State analysts believe the new taxes could disproportionately come from “businesses in riskier or more innovative industries — such as the technology, motion picture, and transportation sectors,” as they put it when the changes were proposed.

In California, a red-hot tech company fits the bill of outsized profits and risky innovation: Nvidia, which is raking in record amounts of money because of the artificial intelligence boom.

As other companies scramble to get ahead in the AI race, they are buying Nvidia’s chips and propelling the company to new heights. On Aug. 28, Nvidia reported second-quarter net income of $16.6 billion, which was more than double its profit from the same period last year — and about the same amount spent by all state and federal campaigns in the last election.

Nvidia’s annual financial report from 2023 shows that it had $1.5 billion in unused California tax credits for research and development. Between the cap on that tax credit and the suspension of the loss deduction the company could have claimed against its rising profit, Nvidia probably realized it would have a larger tax bill, accounting experts told CalMatters. That’s why it may have been the company or one of the companies that made the sizable estimated tax payment to the state.

Nvidia’s most recent quarterly filing provides additional clues: The company paid a total of $7.21 billion in income taxes in the second quarter, a whopping 31-fold increase from the $227 million it paid in taxes in the same period last year. For the first six months of its 2024 fiscal year, Nvidia paid $7.45 billion in income taxes, compared with $328 million in the first half of 2023. Those totals included federal and state taxes. California has a flat corporate tax rate of 8.84% of a company’s net income, while the federal tax rate is a flat 21%.

If Nvidia was largely responsible for the July tax windfall, due to an estimated tax payment, the company likely expects a lot of taxable income this year, said Francine McKenna, an independent financial journalist who writes the Dig newsletter and has taught financial accounting at the University of Pennsylvania’s Wharton business school. McKenna said if that’s the case, and because there’s a limit on how much the company can claim in terms of other tax credits, Nvidia will likely make another sizable estimated tax payment in the third quarter.

An Nvidia spokesperson would not comment. Neither would a spokesperson for Gov. Gavin Newsom.

“I’d expect payments from other companies as well, potentially,” said Brett Whitaker, a former tax executive at Ernst & Young, Nike and Mattel who now teaches corporate tax accounting at Indiana University. “They depend on these credits often to avoid paying tax, so suspending them could drive tax for many.”

Whitaker said most companies try to take advantage of R&D tax credits: “Big Four (accounting) firms have entire teams dedicated solely to this effort.” But he added that the credits are especially commonly used by tech companies and others whose businesses rely on innovation.

It’s hard to tell exactly when those other estimated tax payments will come and how significant they will be, Finance Department spokesperson H.D. Palmer said.

Estimated tax payments are due in April, June, September and January, but those payments are not always made on time so can come in at any time, according to the Franchise Tax Board.

A CalMatters examination of Silicon Valley’s biggest tech companies’ financial filings with the federal Securities and Exchange Commission suggests that some of them may also be affected by the tax changes. That means the companies could make estimated tax payments that could be similar in size to the ones the state received in July.

Apple, Google parent Alphabet and Facebook parent Meta are among the companies whose financial filings show they have past losses, which they could normally deduct, and/or unused research and development tax credits in the state.

As of last Dec. 31, Alphabet had $18.6 billion in old losses in California. The tech giant also had $6.3 billion in research and development credits. As of the same date, Meta had $2.78 billion in past losses in the state, as well as $4.08 billion in unspecified state tax credits from prior periods. And as of Sept. 30, 2023, Apple had $3 billion in research and development credits. All these companies are highly profitable, and whatever deductions and credits they were expecting to use are now either on hold or limited.

According to the analysis of the budget bill that included the tax changes, California’s deduction suspension and tax-credit limits could increase state revenue by $5.95 billion this fiscal year, $5.5 billion the following fiscal year and $3.4 billion the year after that.

The tax changes split state lawmakers mostly along party lines when the governor proposed them in his budget earlier this year. Democrats characterized the changes as necessary, while Republicans decried them as a burden on businesses.

Democratic state Sen. Scott Wiener from San Francisco, a supporter of the changes, said in an emailed statement to CalMatters: “It is important not to read too much into any single month revenue numbers, but we believe that tough decisions we made this year will strengthen the state’s fiscal health going forward while protecting our core programs and benefiting the overall economy.”

Sen. Roger Niello, a Republican from Roseville, an opponent of the changes and a former accountant, told CalMatters he checked with his fiscal staff as well as the Legislative Analyst’s Office about the bigger-than-expected corporate tax payments in July. “It’s reasonable to consider that it’s because of tax changes, but they really don’t know,” he said.”It does appear to be from large deposits from a few companies.”

Niello said the state has disallowed the deduction for operating losses in nearly half of the years between 2008 and 2027, citing a finding by the Legislative Analyst’s Office in a May report. The deductions are supposed to help make taxes roughly even for businesses with similar total profits over the course of multiple years.

Suspending that deduction “appears to be a go-to measure by the state for accounting for revenue shortfalls,” Niello said. “It’s something that businesses cannot rely on now.”

In addition to the tax changes, California tech firms have navigated various legislative fights and new regulations this year. The biggest battle was over a bill to force them to test powerful artificial intelligence models for their potential to enable cyberattacks, the creation of weapons of mass destruction, and other threats to infrastructure. Several big tech companies opposed the legislation, saying it would hinder innovation, while prominent whistleblowers said it would help mitigate the reckless pursuit of tech profits. The measure, from Wiener, cleared the Legislature only to be vetoed by Newsom this past weekend. The governor also signed into law bills that would protect voters from deepfakes and allow victims of doxxing to sue their attackers in civil court.

A refrigerated warehouse operated by Lineage Logistics has burned in Boyle Heights for nearly a week. Public health officials are urging residents nearby and downwind to protect themselves from the smoky air.

But what exactly is in the air is still unclear.

Authorities say they’ve cleared the most hazardous materials — ammonia and lithium-ion batteries — from the fire zone. A spokesperson for the L.A. Fire Department said foam insulation, wood pallets of food, and solar panels on top of the 500,000 square-foot building continue to smolder.

Materials including plastics, electronics and even rotting meat are likely burning, which means the pollution particles emitted “tend to be highly enriched with toxic organics, toxic metals, that are above and beyond what just normal, day-to-day air pollution would look like,” said UCLA air pollution researcher Yifang Zhu.

She said air quality indexes may capture the concentration of particulate matter in the air, but not necessarily the specific toxins in them.

“You'll have almost like a double jeopardy in a sense that the levels [of particulate matter] are higher, and the toxicity is also higher,” she said.

Measuring heavy metals or volatile organic compounds requires special monitoring equipment, Zhu said.

“It’s very difficult to measure,” she said.

But she suspects at least some types of health-harming heavy metals are likely to be in the smoke.

Los Angeles City Councilmember Ysabel Jurado on Monday called for more specifics about what is in the smoke.

People “shouldn't have to guess about what they're breathing or rely on rumors, scattered information and updates, and incomplete information,” she said at a news conference. Jurado, whose council district includes Boyle Heights, added that data from regulators, such as the South Coast Air Quality Management District, should be released in clear, understandable language in English and Spanish.

The South Coast AQMD told LAist before Jurado spoke that the agency has monitors that measure particulate matter, ozone, carbon monoxide and nitrogen dioxide, but not other types of pollutants. The agency said it has set up additional monitors at Eastman Avenue Elementary and Robert Louis Stevenson Middle School. The agency added that the Environmental Protection Agency is also monitoring air quality at the fence line of the facility. LAist has reached out to the EPA for details.

Zhu added that even when the fire is eventually put out, the cleanup can kick up even more pollution — a lesson learned through her research after the L.A. fires.

“ I think people really need to take precautions,” Zhu said, emphasizing that those closest to the fire and downwind should avoid being outside as much as possible, keep windows closed, run a HEPA or MERV 13 air filter, and wear an N95 or similar mask otherwise.

UC Irvine toxicology professor Michael Kleinman said if thawed meat is also burning, that could lead to further toxic gases being released.

Experts urged precautions, especially if you smell smoke.

“ For people who are very close to the fire, like the firefighters themselves, they have exposure to both particulate matter and potential toxic gases, and that's why you'll see them wearing respirators,” said UC Irvine chemistry professor Suzanne Blum. “But once you're some feet away from the building, then the primary concern is the particulate smoke that is coming from this fire.”

As the Boyle Heights warehouse fire burns into its sixth day, SoCal residents are increasingly concerned about the air quality and potential health risks that come with breathing in the smoke. So, what alerts have been issued so far and how can residents be prepared?

Both Gov. Gavin Newsom and Mayor Karen Bass declared a state of emergency on Saturday, a designation that helps California coordinate with local agencies to make sure there are enough resources for the firefight and residents who have been affected after a fire started at a cold storage industrial facility. Los Angeles County Supervisor Hilda Solis said at a press conference Monday that  the county is "delivering supplies, air filters, and air purifiers" to local households.

Los Angeles County public health officials and the South Coast Air Quality Management District (AQMD) also issued a particle pollution advisory that remained in effect until today. Affected areas included: Central Los Angeles County, the San Gabriel Valley, East San Fernando Valley and Northwest San Bernardino Valley.

Although recent air quality readings appear as “moderate” to “good” on South Coast AQMD’s website, the fire is still burning and might be for a few more days.

So what can SoCal residents do to protect themselves?

If the air quality index reads “good” or “poses little to no risk” in some areas, hazardous ash can still be present. If you see ash on your car, or windowsills, you might want to stay inside if possible. In “moderate” or yellow zones, unusually sensitive people are also recommended to avoid longer periods outside.

In the next few days, some might notice windblown ash floating in the air or coating outdoor surfaces. These particles are otherwise known as “fine particulate matter,” which consists of soot, burned plastic and perhaps even traces of the spoiling frozen food from inside the warehouse.

Why that matters

Too much exposure from these materials may cause temporary irritation to the eyes, nose, throat and lungs. If you suffer from health issues that are exacerbated by poor air quality, like respiratory illnesses, you may be affected by these conditions even more.

Four expert tips to protect yourself and your family:

• If you smell smoke or see ash, try to remain indoors with the windows closed. If you can’t, consider stepping outside with an N-95 mask, and refrain from engaging in any rigorous physical activity. 
• In your homes, also avoid using whole house fans (air conditioning is okay), as they can bring in the polluted air from outdoors. 
• If you have an air purifier, this is the time to use it. 
• Avoid using fireplaces, candles and vacuums, as they can introduce toxins into the clean, indoor environment.

For more guidance on precautions following the fires, visit Los Angeles County’s public health website for more. South Coast AQMD’s website also has more healthy and safety tips.

Updated June 22, 2026 at 16:22 PM ET

Argentine soccer superstar Lionel Messi has broken the record for most World Cup scoring.

Messi made the record goal, his 17th, during the first half of Monday's game against Austria. It was a heated match. Austria attacked relentlessly, and Argentina relied on its defense and on goalkeeper Emiliano "Dibu" Martinez. And, near the end in stoppage time, Messi scored again, finishing off at 2-0.

The team captain started off the World Cup with a bang: in the opener against Algeria, Messi scored a hat trick: three goals. A rare feat in soccer. He has scored all five goals for Argentina this World Cup. With the win, Argentina advances to the knockout round.

Messi hails from the province of Santa Fe, Argentina, an area known for producing excellent players. He faced challenges at an early age: he had a hormonal growth deficiency, which was difficult to treat in his hometown, given the severe economic crisis facing Argentina in the late 1990s. By 2001, the Messi family had decided to accept an offer for him to join La Masia, FC Barcelona's youth academy, in Spain. Messi was 13 years old.

It was at Barca that he rose to fame and developed his unique style of walking the pitch, patiently waiting for the right opportunity to jump on the ball, dribble skillfully past his opponents, and score.

Argentina's Lionel Messi, now the all-time World Cup scoring leader, celebrates scoring his team's second goal during the FIFA World Cup 2026 group match against Austria.

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Although a legend of Barca and European soccer, he often expressed a desire to play for the Argentine national team in a World Cup. He got his chance in his 20's, but it wasn't smooth: he was widely seen as a foreigner who had not paid his dues in the Argentine soccer system. His measured, calculating style of play was often misunderstood in South America, where players tended to have a quicker, more aggressive technique.

There were several World Cup attempts that were disappointing, and after the 2016 World Cup, he announced he would not be playing again. "It's over," he said outside the locker room, visibly shaken. "I tried so hard, it is unbelievable, but it hasn't worked. Me and this team are through."

The tides turned under the leadership of Argentine Coach Lionel Scaloni, and Messi led the team to a Copa America victory in 2021. Argentina won the World Cup the following year.

This is Messi's sixth World Cup and he's considered one of the best players in soccer history.

Messi also surpassed Brazilian superstar Marta, who had scored 17 goals at the Women's World Cup.

Copyright 2026 NPR

More than two dozen state historic parks are free through the end of the year in honor of Juneteenth — and the 250th anniversary of the signing of the Declaration of Independence.

Gov. Gavin Newsom announced the free “special edition Historian Passport,” which typically costs $50, as a rebuke to President Donald Trump’s attempts to “rewrite the past,” according to a news release by the governor’s office.

Since his inauguration, Trump has ordered staff working at all National Park Service locations to remove any content that casts Americans in a negative light from parks, monuments and memorials.

“California doesn’t hide from hard truths and uncomfortable history — in fact, we embrace it and learn from it,” Newsom wrote.

Until July 6, Californians can download the state historic park pass for free and use it as many times as they want through the end of 2026. The pass gives free entry to state historic parks for up to four people.

The Historian Passport grants entry to more than 30 state historic parks, including parks like Olompali and Malakoff Diggins which, rather than just providing outdoor recreation, also have an educational emphasis on the state’s history.

Jack London State Historic Park in Napa Valley, California.

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Many of these parks tell the story of the state’s cultural or indigenous history, from missions and museums to temples and the site that sparked the California Gold Rush.

Newsom made a similar move to make state parks free for Martin Luther King Jr. Day this year, in response to Trump’s decision to eliminate the holiday from the list of fee-free days at national parks across the country, replacing it with his birthday on Flag Day.

How to get your free Historian Passport for up to four people

You must make an account with the state’s reservation site ReserveCalifornia.com to obtain a Historian Pass. Then, visit the site’s Advance Passes page and select “Special Edition Historian Passport” from the dropdown menu, which will show as costing $0. No payment information is required.

After checking out, you’ll receive an email with an attached PDF version of your Historian Passport.

The state recommends you print off this PDF to present at any California state historic park for free entry, although you may just be able to show the image on your phone too.

Bear in mind that cellphone service may be poor at many state historic parks, so it’s worth screenshotting the PDF to save it as an image on your phone in case you’re unable to search your email.

Looking for free entry to other state parks that aren’t included in the Historian Passport? Consider checking out a parks pass from your local library, which provides these passes as part of the California State Library Parks Pass program.

KQED’s Carly Severn contributed to this report.