Liz Perez, owner of GC Green, a general contracting and consulting firm that focuses on clean energy, at her home in Vista on Jan. 31, 2025.
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Ariana Drehsler
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CalMatters
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Topline:
California’s small businesses — employers to more than half the state’s workforce — are staring down what some owners, experts and advocates say could be immense negative consequences from President Donald Trump’s slew of executive orders.
The background: Trump’s embattled federal funding freeze imposed on Jan. 27, affected hundreds of billions of dollars for thousands of federal programs, including many aimed at small businesses. After states including California filed suit, a federal judge issued a temporary restraining order putting the freeze on hold. The administration has said funding for small business would not be paused, but owners and advocates are not sure if that will prove true, and say uncertainty about the freeze may already be doing damage.
What's at stake: California is the biggest recipient of Small Business Administration loans, with $1.15 billion in loans approved for this year. Not all loans from the agency are federally funded, but they are guaranteed by the government. The loans funded by the agency, which could be most at risk from the freeze, include disaster loans and microloans.
Read on... for more on what's at stake in California.
California’s small businesses — employers to more than half the state’s workforce — are staring down what some owners, experts and advocates say could be immense negative consequences from President Donald Trump’s slew of executive orders.
Trump’s embattled federal funding freeze and anti-diversity push have seeded uncertainty about the economy, jobs and spending on infrastructure and innovation.
The freeze, imposed on Jan. 27, affected hundreds of billions of dollars for thousands of federal programs, including many aimed at small businesses. After states including California filed suit, a federal judge issued a temporary restraining order putting the freeze on hold. Since then there has been more legal wrangling, including a court order stating that Trump failed to comply with the initial ruling.
The administration has said funding for small business would not be paused, but owners and advocates are not sure if that will prove true, and say uncertainty about the freeze may already be doing damage.
Liz Perez, who owns a small general contracting firm in San Diego County, said news of the funding freeze gave some people in her Native American community “heart attacks.” She said some projects that were under construction had to be temporarily halted while those in charge tried to figure out what was going on.
“I’ve never seen tribal leaders — the most put-together leaders — so frazzled,” Perez said.
Perez and other small business owners, allies and experts worry that a freeze could mean fewer opportunities for entrepreneurs to start and grow businesses, which could lead to fewer jobs and less spending and investment for communities, industries and larger businesses.
Small businesses with fewer than 20 employees accounted for 29% of jobs in California, and businesses with 20 to 100 employees accounted for 30% of jobs in the state as of the end of 2022, according to an analysis of Bureau of Labor Statistics data by the Public Policy Institute of California.
California, the nation’s most populous state, is the biggest recipient of Small Business Administration loans, with $1.15 billion in loans approved for this year. Not all loans from the agency are federally funded, but they are guaranteed by the government. The loans funded by the agency, which could be most at risk from the freeze, include disaster loans and microloans.
Other federal funds that help small businesses and were on the list of programs to be frozen include the $25 million for the State Small Business Credit Initiative, which the Finance Department said is in the state’s 2025-2026 fiscal year budget. Community development financial institutions, which provide banking services to small businesses, are also facing a “real and immediate threat” to their funding that includes possible cancellation of contracts, the CDFI Coalition said in an email to its members this week that was seen by CalMatters.
Simon Brown, spokesperson for national advocacy group Small Business Majority, said small business owners, who “struggle to access capital from all institutions at all levels,” count on the Small Business Administration as a key source of help. Although he is unclear about whether funding from the agency will be affected, he is concerned. “If SBA funding was choked off in some way, it would be a major blow to the entire ecosystem,” Brown said.
Representatives from the Small Business Administration did not return multiple requests for comment, and neither did the White House.
Alex Bloom, economic development manager for Central Sierra Economic Development District as well as Mother Lode Job Training — which handles training funded by the federal Workforce Innovation and Opportunity Act — said the effects of a federal funding freeze could be far-reaching.
“Overall there’s a level of uncertainty,” that could lead to a drop in investor confidence, he said. And “a funding freeze or delay could halt infrastructure projects, which would affect job creation and development that are critical to our region,” Bloom added.
Others say a freeze or pullback on funding will have an impact on equity — that it could hurt those who need the most help.
How federal aid and policies have boosted small business
Perez said she served in the U.S. Navy for nine years, then “transitioned right into a recession.” At one point, she was pregnant and had nowhere to live. She began working in construction and eventually started a business.
“My business helped get me out of poverty,” said Perez, owner of GC Green, a general contracting and consulting firm that focuses on clean energy, and subsidiary Veterans Energy Services Company.
Liz Perez, owner of GC Green, a general contracting and consulting firm that focuses on clean energy, walks around an electric vehicle charging station that was recently completed at a Sonic location in Vista on Jan. 31, 2025.
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Ariana Drehsler
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CalMatters
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On the list of programs the Trump administration is examining include funds for small business development centers, development loans and technical assistance for small businesses.
The budget office also said it wanted to root out “Marxist equity, transgenderism, and green new deal social engineering policies.”
California Attorney General Rob Bonta, who with other state attorneys general won a temporary restraining order against the freeze, said last week during a press conference that, if enacted, it would affect 34% of the state’s budget, which he called “a massive, irreplaceable chunk.”
As a woman, veteran and Native American, Perez said she has been helped by some DEI initiatives. But she said “starting my company didn’t mean I cut in line, or got in front of everybody. It means I got my foot in the door.”
Perez also was able to secure a federal loan to help Native American-owned businesses during the pandemic, during President Joe Biden’s administration, which she said helped her expand her business.
“You roll back these initiatives, what is that going to do to our economy, our supply chains, our workforce?” she asked.
You roll back these initiatives, what is that going to do to our economy, our supply chains, our workforce?
— Liz Perez, small business owner, San Diego County
The budget office followed up its original memo with another one that said “funds for small businesses, farmers, Pell grants, Head Start, rental assistance, and other similar programs will not be paused.” But there is evidence that at least one of the things on that list has not been spared: Some Head Start programs have had trouble accessing funding and at least one has been forced to shut down in Washington, according to media reports and the states’ lawsuit.
At least one expert CalMatters spoke with said he thinks small business is “probably one of the last places the spigot will be turned off.” Robert Dekle, an economics professor at the University of Southern California, said “it would actually be suicidal for the Republican party to continue with” cutting off aid to small businesses because he said small business owners make up “a large part of Trump’s base.” (A poll after Trump won the election showed changes in optimism among small business owners differed along party lines.)
‘We’re going backwards’
But Catalina Amuedo-Dorante, an economics professor at UC Merced, said this administration has made its priorities clear. “We’re going backwards (in terms of) rights for different minority groups, groups that need more assistance in medical care, food, education,” she said.
The professor added that “harming human capital” is a recipe for disaster. She called the possible rollback of funding to small business, medical research and other programs a threat to this generation and next.
Line cook Leticia Andrade, left, puts together a lunch order at Creative Ideas Catering, a small business, in San Francisco on June 11, 2024.
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Juliana Yamada
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CalMatters
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Another one of Trump’s executive orders — titled “Ending Illegal Discrimination And Restoring Merit-Based Opportunity” — includes a directive to the Office of Federal Contract Compliance Programs within the Department of Labor to stop “promoting diversity” and “allowing or encouraging Federal contractors and subcontractors to engage in workforce balancing based on race, color, sex, sexual preference, religion, or national origin.”
The president’s anti-diversity push rides a wave of similar sentiment that has swept the country in recent years, including through lawsuits against affirmative action in government. Last year, a judge ruled that a small business lending program meant to help Black, Latino and other underrepresented entrepreneurs should be open to white people.
In late January, the Small Business Administration reportedly decreased its goals for federal contract awards to small and disadvantaged businesses to 5%, apparently because of the Trump directive on DEI. Under Biden, the goal was 15%.
What all this could mean, regardless of what happens with the funding freeze, is that some small businesses that might otherwise have been considered for federal government contracts may no longer get those chances.
Perez, the small business owner, said DEI initiatives can help when it comes to landing general contracting work, but not always: “Just because these policies are in place, it doesn’t mean you’re going to get the job. It’s so difficult. It’s grinding all the time.”
Carolina Martinez, chief executive of CAMEO Network, a small business advocacy group, said procurement opportunities were already limited, and the Trump administration’s new policies will make things worse. “It seems clear they’re opening the door to discrimination and racism,” she said.
Randell Leach is CEO of Beneficial State Bank in Oakland, a community development financial institution, which serves low-income customers and small businesses that may not be able to get loans elsewhere. Leach said he is concerned about the intersecting effects of “the curtailment of funding and anti-DEI measures that could come together and impact women entrepreneurs and communities of color.”
Not only does that directly affect historically underrepresented small businesses but also, potentially, “a whole host of vendors and tech companies that support them,” he said.
The bottom line: “It’s important to be aware that discrimination in any form is not only bad for communities, but for the economy,” Martinez said.
Cato Hernández
scours through tons of archives to understand how our region became the way it is today.
Published February 23, 2026 5:00 AM
A home in Altadena’s Historic Highlands neighborhood.
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Destiny Torres
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LAist
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Topline:
You can have a role in recording Altadena’s history. The Los Angeles Conservancy, which is leading the first complete survey of the area’s history, has announced its inaugural community meeting.
The details: It’s happening at the CORE hub in Altadena, on Feb. 28 from 2 to 4 p.m. At the meeting, residents will learn about how the historic survey works and ways to get involved. The project is designed for people and community organizations to participate.
What does the survey do? It’ll fully document Altadena’s historic places for the first time, like old buildings or a place with a special history, and go beyond that by recording what they call “intangible heritage” — community traditions, oral histories and cultural practices.
Why it matters: Historic resource surveys are foundational to preservation. They are detailed documents that influence land use planning and essentially lay out the case for why certain areas should be protected with landmark status.
Libby Rainey
is a general assignment reporter. She covers the news that shapes Los Angeles and how people change the city in return.
Published February 23, 2026 5:00 AM
Federal agents guard outside of a federal building and detention center June 13, 2025, in downtown Los Angeles.
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Spencer Platt
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Getty Images
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Topline:
Federal immigration enforcement agencies' weapons spending exploded last year, according to a new report put out by U.S. Sen. Adam Schiff of California.
What the report found: The report, issued Thursday, found that ICE spending commitments increased by 360% in the last year on guns, less lethal weapons, ammunition and related gear, compared to contracts from 2024.
The context: The spending surge also corresponds with a huge increase in investment in ICE and Border Patrol. President Donald Trump's "Big Beautiful Bill" gave Homeland Security an additional $170 billion, and the agencies have been on a hiring spree. ICE grew its number of officers from 10,000 to 22,000 last year, according to DHS.
Read on … for what Homeland Security and others have to say about the numbers.
Federal immigration enforcement agencies' weapons spending exploded last year, according to a new report put out by U.S. Sen. Adam Schiff of California.
The report, issued Thursday, found that ICE spending commitments increased by 360% in the last year on guns, less lethal weapons, ammunition and related gear, compared to contracts from 2024.
"DHS has set in motion a massive surge in spending to add even more dangerous weapons to ICE and CBP’s arsenal," said Schiff in a statement. His office reviewed government spending and procurement data.
"This misuse of taxpayer dollars to maximally arm federal immigration agents, including those with questionable vetting and insufficient training, must end," the statement continued.
The report comes as DHS heads into its second week of a government shutdown over Homeland Security's immigration enforcement tactics.
The report found that ICE and Border Patrolsigned multi-million dollar contracts for tasers, pepper balls and other less lethal weapons soon after the summer of raids and protests against federal immigration enforcement in Los Angeles. In Southern California, residents have described federal agents shooting at them during enforcement operations. Others were injured by federal agents at protests in Los Angeles and Orange County.
John Sandweg, former acting director of ICE during the Obama administration, told LAist that federal investment in "less than lethal" weapons for crowd control were likely linked to ICE's response to protests in L.A.
" Some of this is definitely a byproduct," he said. "It was probably ordered at the time when they were burning through less-than-lethals because of those tactics they were utilizing."
The spending surge also corresponds with a huge increase in investment in ICE and Border Patrol. President Donald Trump's "Big Beautiful Bill" gave Homeland Security an additional $170 billion, and the agencies have been on a hiring spree. ICE grew its number of officers from 10,000 to 22,000 last year, according to DHS.
The press office for Homeland Security questioned the newsworthiness of Schiff’s report.
"A law enforcement agency purchasing law enforcement officers guns and non-lethal resources— really riveting reporting," the office wrote in an email to LAist.
ICE committed to spending $76 million in 2025 on guns, less lethal weapons, ammunition and related gear, compared to $16 million in 2024, according to Schiff's report.
Federal immigration agencies contracted primarily with two firearm manufacturers to buy guns in 2025, per the report.
ICE placed orders with Geissele Automatics for more than $9 million for "precision long guns and accessories" and Glock Inc. for nearly $1.6 million for 9mm handguns and accessories. Border Patrol contracted with the same companies for $3.1 million in rifles and around $3.9 million for 9mm handguns and accessories – plus a quarter million towards submachine guns from a third company.
Together, ICE and Border Patrol contracted for more than $30 million in ammunition and $25 million in "less lethal" weapons including tasers, pepper ball guns and pepper sprays.
Eva Bitran, the director of immigrant rights at the ACLU of Southern California, told LAist that the report is especially concerning in the context of the immigration sweeps that agents have been conducting across Los Angeles.
"Agents descend upon a car wash or a Home Depot parking lot or a day labor corner, or anywhere that they see Brown folks congregate, and use a huge show of force," Bitran said. "They come out with assault rifles, sometimes holstered, sometimes drawn, in military attire and detain people immediately without knowing anything about them."
San Bernardino man describes violent encounter with agents
The 23-year-old U.S. citizen said he was with two family members running an errand one morning in August when masked federal agents in two unmarked cars boxed their truck in. Rascon's father-in-law Francisco Longoria was driving. Rascon said the agents broke the car windows, punched Longoria in the face and did not identify themselves. As Longoria attempted to drive away, Rascon said, one of the agents opened fire.
"I will never forget the fear and having to quickly duck my head as the shots were fired at the car," Rason told the Democratic politicians at the forum, fighting back tears. "Any one of those bullets could have killed me or two people that I love."
Homeland Security said in a statement that the enforcement operation was targeted and that a Border Patrol officer "was forced to discharge his firearm in self-defense" after Longoria drove at the officers and hit two of them.
"How many more shots need to be fired?," California Assemblymember Mike Gipson, who represents the area, said in a statement after the incident. "How many more agents need to bring their reckless gunplay into our safe spaces?"
Immigration enforcement operations are continuing despite the Homeland Security shutdown.
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'Here Lies Love' is on through the beginning of April.
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Jeff Lorch
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Center Theatre Group
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In this edition:
Here Lies Love brings a party to the Taper, Art openings galore, Slamdance wraps up and more of the best things to do this week in Los Angeles.
Highlights:
Monday is Market Monday at Slamdance, where industry experts will hold sessions all day long about the state of film and how to get your work seen.
David Byrne and Fat Boy Slim scored Here Lies Love, an absolute party of a show about Imelda Marcos and the People Power Revolution in the Philippines. Center Theatre Group artistic director Snehal Desai directed this version of the play (it was originally off-Broadway at the Public), and it’s been reimagined for an L.A. audience.
Some of the biggest art world names in L.A. will be on hand for this very timely discussion of museums and censorship with Zocalo Public Square. Speakers include Hamza Walker, who curated the current Monuments show at MOCA and the Brick, and Ann Burroughs, who is the President and CEO of the Japanese American National Museum.
The rain is gone, so get your steps in and meet some new neighbors at this twice-weekly walking club in Boyle Heights. They meet and chat every week, starting and ending at Cafe Nina.
Please forgive me while I become an insufferable art person for the next week and a half as Frieze Art Fair kicks off, inspiring countless art openings, smaller fairs and funky events before and after. You finally have an opportunity to pull out those colorful glasses frames you’ve tucked away in the back of your closet. I can’t recommend highly enough putting on your best aspirational "supporter of the arts" attire and heading out to one of the many (mostly free!) openings ahead of next week’s official events. It's worth it just for the people-watching, but also for the art!
Through Wednesday, February 25 Various locations Hollywood COST: Individual tickets $19; MORE INFO
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Courtesy 42West
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Monday is Market Monday at Slamdance, where industry experts will hold sessions all day long about the state of film and how to get your work seen. It’s sold out, but more tickets will be released day-of, plus you can still catch some great indie films at a range of Hollywood venues before the fest wraps up on Wednesday.
Harlem Globetrotters 100 Year Tour
Tuesday, February 24, 7 p.m. Toyota Arena 4000 Ontario Center, Ontario COST: FROM $44; MORE INFO
Harlem Globetrotters walk the runway during the Actively Black NYFW Runway Show.
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Rob Kim
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Getty Images
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Hammer, Torch, Bulldog, Cheese, Jet, Wham, Thunder, TNT and more have been handed down a Globetrotters legacy, bringing their wild basketball showcase skills to the Toyota Arena for their 100th-anniversary tour. Take in all the dazzle and dunking as they take on the Washington Generals.
Here Lies Love
Through Sunday, April 5 Mark Taper Forum 135 N. Grand Ave., Downtown L.A. COST: FROM $40; MORE INFO
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Jeff Lorch
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Center Theatre Group
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David Byrne and Fatboy Slim scored this absolute party of a show about Imelda Marcos and the People Power Revolution in the Philippines. Center Theatre Group artistic director Snehal Desai directed this version of Here Lies Love (it was originally off-Broadway at the Public), and it’s been reimagined for an L.A. audience, with sleek choreography inspired by Filipino traditional dance, vibrant costumes, smart video projections and good use of the Taper space. I’m not convinced we’re at the party part of the revolution just yet, but Here Lies Love shows it’s possible to get there. I do wish there’d been more of Joan Almedilla, who plays resistance leader Ninoy’s mother — her one song wasn’t nearly enough! Put on your dancing shoes, and if you’re sitting in the front, be ready to get pulled on stage. It’s now been extended for a run through April 5; check the Center Theatre Group's website for a special talkback night with Filipino community leaders and more.
Barry McGee takeover
Through Sunday, March 1, 12 p.m. to 6 p.m. 99CENT 6121 Wilshire Blvd., Miracle Mile COST: FREE; MORE INFO
Artist Barry McGee is teaming up with The Hole @theholenyc to turn an abandoned 99 Cent Store on Wilshire into an artist flea. Over 100 artists will participate in the takeover, with art by McGee and his friends and work from his personal collection.
Zócalo Public Square: How do museums resist censorship?
Monday, February 23, 7:30 p.m. Herald Examiner Building 1111 S. Broadway, Downtown L.A. COST: FREE; MORE INFO
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Courtesy Zócalo Public Square
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We’re at a tenuous time for art at the country’s most established institutions, with threats both financial and curatorial coming from all sides. Some of the biggest art world names in L.A. will be on hand for this very timely discussion of museums and censorship with Zócalo Public Square. Speakers include Hamza Walker, who curated the current Monuments show at MOCA and the Brick, and Ann Burroughs, who is the President and CEO of the Japanese American National Museum.
Boyle Heights Walking Club
Tuesdays and Thursdays, 5 p.m. Cafe Niña 3264 E. 4th Street, Boyle Heights COST: FREE; MORE INFO
The rain is gone, so get your steps in and meet some new neighbors at this twice-weekly walking club in Boyle Heights. They meet and chat every week, starting and ending at Cafe Niña.
The Meeting: Diva Corp
Thursday, February 26, 7 p.m. Pio Pico 3311 E. Pico Blvd., East L.A. COST: FREE, MORE INFO
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Courtesy Diva Corp
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I don’t have enough space to explain Diva Corp to the uninitiated, or even to tell you what this show is going to be about (I have no idea). Short version is: These folks are trying to disrupt the art scene, and it’s sure to be talked about the next day. Diva Corp publishes a magazine of art criticism with art responding to other art. They flipped the tables at an ArtCenter event last week. I think you should check it out and report back. Definitely wear a black turtleneck and those funky glasses.
The Mexican army killed the leader of the powerful Jalisco New Generation Cartel, Nemesio Rubén Oseguera Cervantes, "El Mencho, " in an operation today, a federal official said.
The backstory: The U.S. State Department had offered a reward of up to $15 million for information leading to the arrest of El Mencho. The Jalisco New Generation Cartel, known as CJNG, is one of the most powerful and fasted growing criminal organizations in Mexico and was born in 2009.
Security alert issued: It's a busy travel week for Californians and others where schools are on break. The U.S. State Department is telling U.S. citizens traveling inJalisco State (including Puerto Vallarta, Chapala, and Guadalajara), Tamaulipas State (including Reynosa and other municipalities), areas of Michoacan State, Guerrero State, and Nuevo Leon State to shelter in place until further notice.
MEXICO CITY — The Mexican army killed the leader of the powerful Jalisco New Generation Cartel, Nemesio Rubén Oseguera Cervantes, "El Mencho, " in an operation Sunday, a federal official said.
The official, who requested anonymity because they were not authorized to speak publicly, said it happened during a military operation in the western state of Jalisco.
State Department warning
The State Department is telling U.S. citizens traveling inJalisco State (including Puerto Vallarta, Chapala, and Guadalajara), Tamaulipas State (including Reynosa and other municipalities), areas of Michoacan State, Guerrero State, and Nuevo Leon State to shelter in place until further notice.
Follow the directions of local authorities and in case of emergency, call 911.
Avoid crowds.
Keep family and friends advised of your location and well-being via phone, text, and social media.
It followed several hours of roadblocks with burning vehicles in Jalisco and other states. Such tactics are commonly used by the cartels to block military operations.
Videos circulating social media showed plumes of smoke billowing over the city of Puerto Vallarta, a major city in Jalisco, and sprinting through the airport of the state's capital in panic. On Sunday afternoon, Air Canada announced it was suspending flights to Puerto Vallarta "due to an ongoing security situation" and advised customers not to go to their airport.
The U.S. State Department had offered a reward of up to $15 million for information leading to the arrest of El Mencho. The Jalisco New Generation Cartel, known as CJNG, is one of the most powerful and fasted growing criminal organizations in Mexico and was born in 2009.
In February, the Trump administration designated the cartel as a foreign terrorist organization.
It has been one of the most aggressive cartels in its attacks on the military—including helicopters—and a pioneer in launching explosives from drones and installing mines. In 2020, it carried out a spectacular assassination attempt with grenades and high-powered rifles in the heart of Mexico City against the then head of the capital's police force and now head of federal security.
The DEA considers this cartel to be as powerful as the Sinaloa cartel, one of Mexico's most infamous criminal groups, with a presence in all 50 U.S. states where it distributes tons of drugs. It is one of the main suppliers of cocaine to the U.S. market and, like the Sinaloa cartel, earns billions from the production of fentanyl and methamphetamines.
Since 2017, Oseguera Cervantes has been indicted several times in the United States District Court for the District of Columbia.
The most recent superseding indictment, filed on April 5, 2022, charges Oseguera Cervantes with conspiracy and distribution of controlled substances (methamphetamine, cocaine, and fentanyl) for the purpose of illegal importation into the United States and use of firearms during and in connection with drug trafficking offenses. Oseguera Cervantes is also charged under the Drug Kingpin Enforcement Act for directing a continuing criminal enterprise.
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