The Brief

L.A. County will provide assistance grants to small businesses that suffered financial loss from the Lineage warehouse fire that burned for a week in June in Boyle Heights. The fire's aftermath has many in the community seeking help to recover.

Why it matters

The county surveyed business owners in the area who said they are continuing to face a loss of customers and revenue amid persisting odor from food in the Boyle Heights warehouse that continues to rot in the summer heat. The fire started June 17 and burned until June 24. It initially generated significant air quality hazards and prompted evacuations.

About the funds

The grants from Supervisor Hilda Solis’ discretionary budget will be disbursed within 45 days — and then draw from countywide funds if needed. The county will also seek reimbursement for the grants from Lineage. The Department of Public Health and County Counsel will also evaluate new fees and penalties for businesses that pose environmental or health risks in L.A. County. Some fee increases could fund county assistance for future economic disasters.

Who is eligible

Small businesses within the affected area will be able to apply for the grants. The county is looking to prioritize initial funding for businesses that have not already received emergency financial support from other organizations.

More details to come

The Board of Supervisors and Department of Economic Opportunity will announce more about the amount of assistance and how to apply when those details are made final. Affected business owners and residents can find more information on the L.A. County Recovers website.

What to have ready

Existing documentation from L.A. County recommends you collect the following documentation of any damage.

(

Courtesy L.A. Department of Economic Opportunity

)

(

Courtesy L.A. Department of Economic Opportunity

)

L.A. City Councilmember Ysabel Jurado introduced seven motions Tuesday, all geared toward providing immediate and long-term relief for community members who’ve been hurt by the aftermath of the Lineage warehouse fire in Boyle Heights.

According to Jurado, the legislative package is centered around three priorities:

• “Immediate relief and cleanup”
• "Accountability, transparency and site safeguards”
• “Long-term oversight and community power”

Jurado is calling for a Mitigation Response Fund of up to $10 million to provide aid for affected residents and small businesses that have lost revenue as the neighborhood continues dealing with foul odors, flies, rats and other vermin. Jurado also wants to see higher penalties for corporate negligence, and create a commission to advise L.A.’s city leadership on environmental justice policy.

After the fire in mid-June, tons of food at the cold storage warehouse were left to rot. Now, more than a month later, community members are still dealing with odors and pests, which have disrupted local businesses, community spaces and everyday quality of life.

Local activists and community members say the Lineage fire aftermath is part of a long legacy of environmental injustice in Boyle Heights. In recent decades, residents have also dealt with pungent smells from rendering plants in the neighboring city of Vernon. And up until 2015, Vernon was also home to Exide, a battery recycling facility that contaminated the soil of thousands of homes in surrounding communities with lead. The taxpayer-funded cleanup for that issue is still ongoing. Lineage also has several facilities in the city of Vernon.

Jurado’s proposed commission “can serve as an interdisciplinary body to identify and start to protect our communities from historical harms that continue to function as standard practice today,” said mark! Lopez, a community organizer at East Yard Communities for Environmental Justice.

Community members will have a chance to provide public comment on Jurado’s motions before they move to a full council vote.

In a statement, Jurado said recovery "cannot mean removing debris and moving on.” In her view, it must also involve the “aggressive pursuit of every recoverable dollar from responsible parties” and "give communities that have carried Los Angeles' environmental burdens real power over what happens next."

Lineage President and CEO Greg Lehmkuhl previously said in a statement that he cannot estimate how long the cleanup will take. “What we can tell you is this: there are people on site working on this recovery 24/7,” he added.

The Los Angeles City Council voted 13-1 on Tuesday to put a measure on the November ballot that will ask voters whether homes affected by the Palisades Fire should be exempt from the city’s controversial “mansion tax.”

If passed, the exemption would apply to the sale of homes damaged or destroyed by the fire. The exemption would last until early 2030, five years from the date of the fire.

This could potentially reduce the tax’s revenue up to 6% — or $32 million each year — according to a May 2026 report from the L.A. Housing Department.

How the ‘mansion tax’ works 

The “mansion tax,” officially called Measure ULA, is a tiered tax on real estate selling for $5.4 million or more. The tax, which was passed by voters in 2022, funds programs such as rental assistance, eviction defense and affordable housing construction in the city.

The measure has fierce defenders, as well as staunch critics. A statewide ballot measure sought to kill the tax before it was pulled by supporters earlier this year in exchange for a legislative deal in Sacramento.

State and local lawmakers have considered reducing the tax or exempting newly constructed apartment buildings. Their ideas have been guided by economic studies that found the tax was slowing down housing development in the city. So far, none of those reforms have mustered enough support to pass.

Where council members stand

Councilmember Eunisses Hernandez, whose district includes Highland Park, Chinatown and Westlake, previously spoke against the measure’s scope at a City Council meeting on July 1.

“Any exemption should only be for homeowners whose primary residence was destroyed, and people who genuinely need help rebuilding, not LLCs, investors or people with a portfolio of properties,” Hernandez said. “We had the opportunity to write those protections into this ordinance, and we didn’t.”

Hernandez criticized her colleagues for shooting down the post-fire eviction protections she proposed after tenants living in her district lost work as gardeners and nannies in the Pacific Palisades.

“When wealthy property owners need relief, we’re willing to bend over backwards,” she said. “But when working class people and tenants need protection, suddenly our hands are tied and the political will is not there.”

Councilmember Traci Park, who represents the Pacific Palisades, voiced support for the measure at the same meeting.

“Putting this tax on these folks who are trying to recover and reckoning with the fact that some of them just aren’t coming home, is just unspeakably cruel,” Park said. “It’s an exemption that applies in very narrow circumstances to original owners and first transactions for five years, only for residential properties. This is the least we can do as this community continues to recover.”

In Tuesday’s meeting, Hernandez cast the lone vote against placing the measure on the November ballot. Thirteen council members supported the move. Councilmember Curren Price was not present for the vote.

What happens next 

L.A. voters will have the final say on whether Palisades homeowners will be exempt from the tax. The proposal needs a simple majority of support from voters in the upcoming November general election to pass.

How to keep tabs on the L.A. City Council

The L.A. City Council tends to meet Tuesdays, Wednesdays, and Fridays. Meetings typically start at 10 a.m.

Here’s how you can follow along:

• Attend in person: The council typically meets at City Hall, Council Chambers, 200 N. Spring St., Los Angeles
• Watch the live broadcast
• Here’s how to submit a comment or contact the council

It’s a tumultuous time for healthcare. Federal and state budget cuts are changing the rules for public benefits. Most people with Medi-Cal won’t be affected, but it may be confusing to figure out whether your benefits will change.

Are you on Medi-Cal, or is someone in your family worried about the cuts?

Tell us about your health coverage, and we'll share advice, information and updates.

The two most important things to do: Update your contact information with your county benefits office, and keep an eye out for any letters mailed from the county or state.

You can update your information by calling your local county office or online with a BenefitsCal account.

Here are the key changes, what they mean, and where to get help.

Changes for immigrants

Non-citizens — undocumented immigrants, refugees, asylum seekers, and people with pending immigration cases — are the group most affected, even those with a green card. The state has an immigration status chart to help you check whether these changes apply to you. If they do, you’ll get a letter.

Undocumented immigrants

• As of Jan. 1, immigrants over age 19 without legal status can no longer apply for Medi-Cal (children remain eligible). 
• Those already enrolled keep benefits if they renew on time. If they miss the renewal deadline and coverage ends, they have three months to reapply. After that window, they cannot sign up again. 
• Anyone who loses Medi-Cal may apply for emergency services. Those are limited to pregnancy, emergency visits and nursing home care.
• Starting Jan. 1, 2027, this group moves to “fee-for-service” Medi-Cal that limits some coverage. Doctors visits, prescriptions, and mental health treatment won’t be affected. Confirm your doctor accepts this Medi-Cal type, or find a new doctor by calling 1-800-541-5555.
• Adults ages 19-64 must also prove they are working or volunteering at least 80 hours a month. Students, people with disabilities and parents with young children are exempt from the work requirement. Starting July 1, 2027, adults lose dental coverage. Those 19-59 will also pay a $30 monthly fee.
• Children and pregnant individuals will remain eligible for Medi-Cal.

Refugees, asylum seekers, some green card holders

• Starting Jan. 1, 2027, refugees, asylum seekers, humanitarian parolees, and survivors of domestic violence or trafficking move to “fee-for-service” Medi-Cal. They will still be able to see the doctor, pick up prescriptions and see the dentist, but they will no longer have a health insurance plan. Call 1-800-541-5555 to find a new doctor if your current one does not accept it.
• Six months later, this group will lose full-scope Medi-Cal and dental benefits, keeping only pregnancy and emergency care.

Promotoras, community health workers and legal aid groups can help answer questions about this.

Adults without children

About 5 million Californians gained Medi-Cal coverage when the Obama administration expanded eligibility to childless adults and those earning slightly above the federal poverty level. Now this group faces stricter requirements in order to keep their health coverage.

Work requirements

• Beginning Jan. 1, adults 19-64 and many immigrants must prove at least 80 hours each month of working or volunteering, or half-time schooling. 
• Who’s exempt: children, seniors, pregnant people, those who are disabled or have serious health conditions or addictions, people on Medicare, those recently released from prison, American Indians and Alaska Natives populations and some former foster youth.
• The state will mail a letter if this applies to you. Most renewal packets come in a bright yellow envelope, but notices may look different. Respond quickly.

More frequent renewals

Beginning next March, the state will check Medi-Cal eligibility every six months for adults ages 19-64 and many immigrants, verifying income, work status, and other requirements. Renewal may happen automatically; if it doesn’t you will receive a letter asking for more information.

Seniors (65+) and people with disabilities

Starting July 1, 2027, seniors (65+) and people with disabilities cannot own more than $21,000 in assets, including savings accounts, cash and property other than a home and a car. For couples it’s $31,000 total. This limit also applies to non-citizens. Your county benefits office or a local legal aid group can clarify what counts; the state also has an FAQ about the new limits.

If you’re afraid of losing coverage, do these things right now

Not everyone will be affected, and some people won’t need to do anything. If you’re required to report work hours or other information, you’ll receive a notice in the mail or through the BenefitsCal online portal if you have an online account: Check both regularly.

The state doesn’t yet have a timeline for initial notices, but advocates say the best move now is simply keeping your information current. This is especially important because the rules keep changing.

“It’s so vital they watch the mail, look out for communications from the county, and are responsive to requests for information,” said Jack Dailey, director of health policy at the Legal Aid Society of San Diego.

Bukola Olusanya, regional medical director for St. John’s Community Health, talks to a patient in a mobile clinic van in Los Angeles on Feb. 6, 2026.

(

Jules Hotz

/

CalMatters

)

If you get a notice: You should have plenty of warning before benefits are terminated – respond promptly to any notice of action.

If you get a notice that your benefits will be cancelled and you disagree with that decision, you can appeal and request a state hearing, which “allows you to temporarily freeze an adverse action and keep your benefits while your appeal is being reviewed,” says Alicia Emanuel, a staff attorney with the National Health Law Program.

If you’ve already lost coverage: You have 90 days to restore benefits without filing a new application. Submit the requested information in that window and, if you still qualify, you shouldn't see a coverage gap. After 90 days, you'll need to reapply from scratch.

Where to get free help

Promotoras — community health workers trained through groups like Vision y Compromiso — can meet you in your neighborhood, explain benefits in plain language, and help with Medi-Cal applications. Rosa Lopez, a promotora in Long Beach, said many immigrants worry about losing coverage: “I tell them you don’t have status, don’t worry. The first thing is your health.”

Community clinics often have benefits counselors on staff, and legal aid groups offer free advice for confusing letters — call the Health Consumer Alliance at (888) 804-3536, or check its website. The state also runs a helpline at (800) 541-5555 and keeps its website up-to-date.

One more thing worth knowing: Medi-Cal eligibility isn't just one door — there are several ways to qualify, based on conditions such as income, age, disability, or pregnancy. Before the state can terminate your benefits under one category, it must check whether you still qualify through any of the others. “It's a really critical protection because sometimes an individual is in fact eligible through a different pathway,” Emanuel said. And by law, Medi-Cal must provide free language assistance for people with limited English proficiency.

This article was originally published on CalMatters and was republished under the Creative Commons Attribution-NonCommercial-NoDerivatives license.

The Los Angeles Unified School Board planned to vote on firing former Superintendent Alberto Carvalho before he abruptly resigned in June, accusing him of “unprofessional conduct” and “unsatisfactory performance,” according to newly-released documents.

The letters — released to LAist in response to a public records request — show the district accused Carvalho of more than a dozen violations of district policy and in some cases, state law. The documents also show his legal representation contested the allegations, calling the school board’s letter a “political hit job.”

Carvalho had been on administrative leave since February after federal agents raided his home and office. He resigned in late June, days before the board planned to vote on his termination.

On June 27, The Los Angeles Times first reported that Carvalho was threatened with dismissal, but the full extent of the allegations against Carvalho was not public at the time.

The school board’s allegations

In the letter dated June 8, Board President Scott Schmerelson outlined a series of allegations, accusing Carvalho of failing to disclose outside income from his consulting work and gifts. Those perks allegedly included tickets to Dodgers games and travel expenses to speaking engagements in Washington, D.C. paid by outside vendors.

Schmerelson also wrote that an ongoing investigation found Carvalho allegedly bypassed district information technology policy, including by asking district staff to allow him access to Telegram, a messaging app the district considered to be “a high cyber risk.”

The letter also alleged Carvalho asked his district-provided driver to perform personal work.

The letter informed Carvalho that the district allegedly found he had the driver “drop off your wife at LAX on multiple occasions, drive you and a female District employee after hours to restaurants and other social outings, and her home on approximately a dozen occasions.”

How Carvalho’s legal team responded

Lawyers with Holland and Knight, which is representing Carvalho, issued a 12-page rebuttal to the district’s claims and called the planned termination “retaliatory.”

Carvalho’s attorneys wrote that the externally funded meetings, travel and other perks were public and often discussed with the district’s general counsel.

The use of a district car and driver is included in Carvalho’s contract, along with a provision for use for non-district business.

“Based on his contract and guidance from the LAUSD General Counsel — and in a heightened threat environment facing public officials like Mr. Carvalho — he understood that he was authorized to use the automobile and driver after work hours,” the letter from his lawyer read.

The response also highlighted Carvalho’s recent contract renewal, unanimously approved by the board in September 2025.

Several parts of Holland and Knight’s response were redacted. An LAUSD employee said the redactions were made to avoid invasion of privacy and because, in some cases, the public interest was better served by withholding information.

“Yesterday’s release of LAUSD’s investigation report confirms, once again, that Alberto Carvalho has broken no laws,” Carvalho’s lawyers said in a statement sent to LAist Tuesday. “While the District’s letter purports to recite other ‘issues of concern,’ it does so in an incomplete and misleading manner — as we set forth in our response to the District.”

LAUSD declined to answer additional questions about the letters or whether an investigation into Carvalho’s former employment is ongoing.

Failed AI chatbot company’s alleged role 

The board’s allegations included Carvalho’s interaction with the tech company AllHere, the now-failed company that contracted with the district to provide an AI chatbot. The board accused Carvalho of accepting $4,633.37 worth of travel and lodging from AllHere to speak at a conference, as well as attending dinner events during the contract procurement process. Federal prosecutors have charged AllHere’s CEO with defrauding investors.

The letter also mentions trips funded by district vendors to Washington, D.C. that were paid for by tele-mental-health provider Hazel Health, to Arizona to speak at an AI-focused event paid for by ed tech company Carnegie Learning and a trip to Denver for an education roundtable funded by LEGO’s education division.

On the day of the FBI raids, agents also searched the home of a woman in South Florida who was associated with AllHere. Federal authorities said that search was linked to the searches of Carvalho’s home and office in L.A., but have not connected the investigation to AllHere.

Carvalho’s lawyers said in their rebuttal that the district’s prior inquiries into AllHere “cleared Mr. Carvalho of any misconduct.”

On Tuesday, after the release of the letters, the lawyers went on to say that “[a]fter thoroughly investigating, LAUSD found no evidence that Alberto violated federal law regarding his interactions with AllHere or any other vendor.”

What are public officials required to disclose?  

California requires public officials to report outside income, gifts and investments, in part so that the public can evaluate officials' decision-making against their financial interests. Officials must submit this document, called a Form 700, annually.

The letter from the district said Carvalho did not file his most recent Form 700 by the April 1 deadline.

Carvalho was a nationally recognized educator before and during his tenure as LAUSD superintendent. The announcement of his LAUSD appointment included references to his service on the boards of several national education organizations.

The letter lists two dozen examples of payments for consulting work, travel and gifts Carvalho allegedly failed to disclose on the Form 700 between 2022 and 2024. They include tickets to a Dodgers Game provided by the California Credit Union, consulting calls with educational technology companies and travel paid for by publishing and media company Scholastic.

Carvalho’s legal representation said he “never intentionally concealed any income or gifts on his Form 700 filings.”

“The events and travel referenced in the allegations were entirely consistent with Mr. Carvalho’s duties as leader of the nation’s second-largest school district,” the letter continued.

For example, the letter noted Carvalho’s attendance at the 2022 and 2024 “Rookie of the Year” teacher awards ceremonies at Dodger Stadium were publicized and that other LAUSD board members also participated in the event.

The letter noted that many of the alleged payments date back several years.

“If the Board had any concerns regarding his disclosure obligations, there was ample opportunity to communicate such concerns to the Superintendent, and to correct them if needed,” the letter read. “That never happened.”

Carvalho’s lawyers said that the former superintendent notified both the district and the state commission that oversees Form 700 filings that federal agents seized the documents, devices and records he needed to complete the forms.