The potential impact on California: The plans call for California, Minnesota, New York, Illinois and Colorado to lose about $7 billion in cash assistance for households with children, almost $2.4 billion to care for children of working parents, and about $870 million for social services grants that mostly benefit children at risk, according to unnamed federal officials speaking to the New York Times and New York Post.
Read on ... for more on the fraud allegations and Gov. Gavin Newsom's response.
The state’s Democrat governor, Tim Walz — who ran for vice president against Donald Trump’s ticket in 2024 — announced Monday he was dropping out of running for reelection. He pointed to fraud against the state, saying it’s a real issue while alleging Trump and his allies were “seeking to take advantage of the crisis.”
On Monday, the New York Post reported that the administration was expanding the funding freeze to include California and three other Democrat-led states, in addition to Minnesota. Unnamed federal officials cited “concerns that the benefits were fraudulently funneled to non-citizens,” The Post reported.
Early Tuesday, President Trump alleged that corruption in California is worse than Minnesota and announced an investigation.
“California, under Governor Gavin Newscum, is more corrupt than Minnesota, if that’s possible??? The Fraud Investigation of California has begun. Thank you for your attention to this matter! PRESIDENT DONALD J. TRUMP,” the president wrote on his social media platform Truth Social.
He did not specify what alleged fraud was being examined in the Golden State.
LAist has reached out to the White House to ask what the president’s fraud concerns are in California and to request an interview with the president.
“For too long, Democrat-led states and governors have been complicit in allowing massive amounts of fraud to occur under their watch,” said an emailed statement from Andrew Nixon, a spokesperson for U.S. Department of Health and Human Services, which administers the federal childcare funds.
“Under the Trump administration, we are ensuring that federal taxpayer dollars are being used for legitimate purposes. We will ensure these states are following the law and protecting hard-earned taxpayer money.”
Gov. Gavin Newsom’s press office disputed Trump’s claim on social media, arguing that since taking office, the governor has blocked $125 billion in fraud and arrested “criminal parasites leaching off of taxpayers.”
What's changing?
The plans call for California, Minnesota, New York, Illinois and Colorado to lose about $7 billion in cash assistance for households with children, almost $2.4 billion to care for children of working parents, and about $870 million for social services grants that mostly benefit children at risk, according to unnamed federal officials speaking to the New York Times and New York Post.
State officials said the news broke before they had received official notification of the funding freeze plans.
Federal officials sent letters to California on Tuesday about the funding pauses to three programs (click the links to read the letters):
The letters ask the state to provide data about recipients, including their names, Social Security numbers and birthdates for several of the programs — and for the state to implement "additional fiscal accountability requirements" for the childcare funding that include "submission of verified attendance documentation."
"CCDF funds shall be temporarily placed on restricted drawdown until these additional fiscal accountability requirements are implemented," one of the letters reads.
“The California Department of Social Services administers childcare programs that help working families afford safe, reliable care for their children — so parents can go to work, support their families, and contribute to their communities,” said a statement from California Department of Social Services spokesperson Jason Montiel. “These funds are critical for working families across California. We take fraud seriously."
Potential impact on California families
In the largest category of funding, TANF, California receives $3.7 billion per year.
”It's very clear that a freeze of those funds would be very damaging to the children, families, and providers of California,” said Stacy Lee, who oversees early childhood initiatives "at Children Now, an advocacy group for children in California.
”It is a significant portion of our funds and will impact families and children and providers across the whole state,” she added. “It would be devastating, in no uncertain terms.”
About 270,000 people are served by the TANF program in L.A. County — about 200,000 of whom are children, according to the county Department of Public Social Services.
“Any pause in funding for their cash benefits — which average $1000/month — would be devastating to these families,” said DPSS chief of staff Nick Ippolito.
Ippolito said the department has a robust fraud prevention and 170-person investigations team, and takes allegations “very seriously.”
Criminal fraud cases in CA appear to be rare for this program
When it comes to the federal childcare funds that are being frozen, the dollar amount of fraud alleged in criminal cases appears to be a tiny fraction of the overall program’s spending in California.
A search of thousands of news releases by all four federal prosecutor offices in California, going back more than a decade, found a total of one criminal case where the press releases referenced childcare benefits.
That case, brought in 2023, alleged four men stole $3.7 million in federal childcare benefits through fraudulent requests to a San Diego organization that distributed the funds. All four pleaded guilty, with one defendant sentenced to 27 months in prison and others sentenced to other terms, according to authorities.
It appears to be equivalent to one one-hundredth of 1% of all the childcare funding California has received over the past decade-plus covered by the prosecution press release search.
What happens next?
It remains to be seen whether the funding freeze will end up in court. The state, as well as major cities and counties in California, has sued to ask judges to halt funding freezes or new requirements placed by the Trump administration. L.A. city officials say they’ve had success with that, including shielding more than $600 million in federal grant funding to the city last year.
A union representing California childcare workers said the funding freeze would harm low-income families.
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“These threats need to be called out for what they are: direct threats on working families of all backgrounds who rely on access to quality, affordable child care in their communities to go to work every day supporting, and growing our economy,” said Max Arias, chairperson for the Child Care Providers United, which says it represents more than 70,000 child care workers across the state who care for kids in their homes.
“Funding freezes, even when intended to be temporary, will be devastating — resulting in families losing access to care and working parents facing the devastating choice of keeping their children safe or paying their bills.”
“The California Department of Social Services administers child care programs that help working families afford safe, reliable care for their children — so parents can go to work, support their families, and contribute to their communities,” said a statement from California Department of Social Services spokesperson Jason Montiel. “These funds are critical for working families across California. We take fraud seriously."
It used to be the “cool kids" were the ones up drinking until 5 a.m., pursuing pleasure no matter the unsavory cost. Today, however, the cool kids are in bed by 9 p.m. so they can be up at 5 a.m., in time to slam down a shot of matcha and head to a day rave where all the attendees are — believe it or not — shockingly, sober. A round-up of daytime revelries in L.A.
Where's it happening? A tea lounge speakeasy in DTLA, a roving daytime bar scene and a regular early morning dance rave somewhere in the city.
Why now: Because as club kids age up, they want to have fun while still being able to function. And Gen Z is just drinking less compared to its older counterparts.
Once upon a time, we lived in a world where the “cool” kids were the ones up drinking until 5 a.m., weekend warriors who relished the pursuit of pleasure no matter the unsavory cost.
In today’s post-COVID world, however, things have gotten a little topsy-turvy. Nowadays, the cool kids are in bed by 9 p.m. so they can be up at 5 a.m., in time to slam down a shot of matcha and head to a day rave where all the attendees are — believe it or not — shockingly, sober.
The thing is, to the undiscerning eye, the crowd at a Daybreaker rave looks exactly the same as its typically drug-fueled nighttime counterpart: buoyant, animated and so very alive with its sea of thrashing bodies, quivering booties and smiling faces.
It’s a testament to a new paradigm shift, one in which adults are increasingly turning away from the hard stuff in favor of celebrating without alcohol. Nurtured by the desire for vitality, the small flame of “Dry January” has taken shape into something much greater — a whole new world of non-alcoholic gatherings.
From coffee raves to tea speakeasies and beyond, the world of adult beverages as we know it is rapidly changing. Whether you’re a social butterfly looking for a new scene or a homebody hoping to finally venture off the couch, we’ve featured three of our favorite non-alcoholic gatherings in L.A. Check ‘em out below in all their glory.
Bar Nuda (pop up locations)
Founded by Morris Ellis, a creative director and branding expert, and Pablo Murillo, a storyteller and entrepreneur, Bar Nuda is a pop up “bar” experience designed for those in mind who want to indulge in the social aspects of the barfly life without any of the lingering regrets the next morning.
“We've been on a mission to redefine a night out,” says Murillo, smiling as he places a drink in front of me. “Our slogan is ‘Drinks to Remember’, because we want you to go out and celebrate life.”
Bar Nuda helps you indulge in the social aspects of the barfly life without any of the lingering regrets
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Janelle Lassalle
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It’s a mission that’s more personal than professional — Murillo’s experience of losing his father to alcohol-related illness inspired him to redefine the narrative of what a night out could look like. His goal was a surprisingly simple concept: to create a warm, welcoming community where people could mingle without the standard social lubricant of booze.
“We wanted to really hold space for people like myself, you know?” Murillo continues. “When we started Bar Nuda, I was not sober, but I am now. Bar Nuda got me sober. We wanted to change the narrative for my family, but also be there for others to do the same and to say, hey, look, you can go out and have a really good time without drinking booze.”
Bar Nuda's slogan is “Drinks to Remember"
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Bar Nuda partners up with local bars, neighborhood coffee shops and other venues around Los Angeles to create unique non-alcoholic based events for patrons; check out their Instagram for the details. Trivia Night, for instance, is a regular staple in their event roster, with most events starting at 7 or 8 p.m. Other events include benefit concerts (to raise money for CHIRLA, The Coalition for Humane Immigrant Rights), Alcohol Free Game Night and even courses dedicated to making your own non-alcoholic based drinks.
“We do a ton of work with hospitality groups, venues and music festivals who are looking to build out their non-alcoholic programs,” says Brianda Gonzalez, founder of the non-alcoholic shop The New Bar, who partners with Bar Nuda. “Consumers are increasingly looking for other options when they go out and don't want to drink quite as much.”
Ellis and Murillo are certainly doing something right: to walk into one of their events is to feel like you’re, well, inside of a bar, filled with the sounds of warm laughter, buzzing conversations and the inevitable chaotic din of the trivia crowd. Drinks are prepared with a level of craftsmanship that might have you second guessing as to whether or not you’re drinking alcohol. The menu rotates seasonally, with many of the drink ingredients sourced directly from Mexico. The house favorite is the “Rosa Nuda”, made with tantalizingly tangy, fresh bougainvillea sourced by Bar Nuda’s Beverage Director Bryant J. Orozco.
As the guests at the bar form a small crowd, giggling about events to come, I take a sip of the Rosa Nuda before a huge smile spreads across my face.
A recent Daybreaker event in Venice giving good vibes
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The first time I attended a Daybreaker event was in Portland several years ago. I attended because friends of mine had told me there was a new, sober day rave spreading across town, and I simply didn’t believe them.
How very wrong I was. It may have been 9 a.m., but this crowd seemed just as rowdy, if not rowdier, than its nighttime counterpart. The only difference between the two was this crowd seemed decked out in yoga pants rather than rave gear.
Bubbling with energy at Daybreaker Venice
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“I wanted to have fun while still being able to function,” said Nemo, a DJ I met there. “At some point my body was not able to handle the disrupted sleep cycles and booze anymore, but I still wanted to be able to go to events and enjoy myself.”
To my great surprise, I discovered raving sober had its own unique appeal. The lack of alcohol kept me light and energetic rather than clouded in a drunken haze. I was able to dance for much longer than usual, and felt a familiar euphoric high similar to a runner’s high the longer I danced.
Daybreaker throws day raves in a number of different cities: Los Angeles, Seattle, Atlanta, New York. The next event in L.A. is Saturday Jan. 24 from 9 a.m. - 12 noon, to be held in a secret venue. Given it’s described as “dry January, wet with endorphins”, there’s a good chance it’s in a sauna, where Daybreaker is known to throw dance parties.
Celebrating life at 9am in Venice
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Bailey Templeton
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“We’re living in a cultural moment where people are craving clarity, connection, and control over their wellbeing — and ultimately belonging,” says Daybreaker founder Radha Agrawal.
“Post-pandemic, there’s been a mass re-evaluation of what we put into our bodies and how we spend our time. Gen Z in particular is leading the charge — they’re drinking nearly 30% less than millennials did at their age — and they’re looking for ways to connect without sacrificing health or mental clarity," he says.
"People want to wake up feeling good, not hungover, and they’re realizing that social connection can actually feel better without alcohol.”
In true speakeasy style, I reached Bu Tea Den through an inconspicuous metal door in a back alley downtown. Once inside, however, the vibe quickly shifted. A curious video was projected onto a wall by the entrance, lit up by colorful, digital Paisley shapes swimming about. Each Paisley had a customer’s name plastered above it, giving the surreal sensation that I was watching some sort of digital city like a god from up above on high. ‘PAISLEY ID’ read across the top of the screen.
Nearby, what I initially thought was an ATM was actually marked "AFTM: automated fortune telling machine". Patrons can take a quiz and receive a spiritual fortune of sorts, printed out neatly onto a slip of paper like an ATM receipt, along with a corresponding Paisley.
(According to the machine, my life path number is seven, my soul age is baby, and my chakral focus is sacral. "Trust what steadies you, even if it changes tomorrow.")
Writer Janelle Lassalle experiencing Bu Tu Den's AFTM — an automated fortune telling machine
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Inspired by time spent in the Burning Man community, co-founders Severin Sauliere and Natalie Tran created the art installation to help inspire a sense of community at Bu Tea Den.
Sauliere and Tran are husband and wife: Sauliere is an artist/Creative Director, and Tran is Chief Steeping Officer in charge of tea operations. Their goal is to redefine happy hour by giving guests the opportunity to slow down and get social without the thundering din of techno music and flashy cocktails.
"It's not an upsell kind of thing," said Sauliere. "It's based on you chilling with your friends, having some tea together and talking. I'm not against alcohol, but it's everywhere. Having a space that doesn't have it challenges the dynamic a little bit."
Co-founder Natalie Tran, at Bu Tea Den “part tea lounge, part interactive art installation, and part intimate gathering space.”
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The space is cultivated in the style of a tea lounge, with a number of booths scattered about facing the Paisley display. Guests can enjoy a unique tea experience at the bar in which they’re served several rounds of tea blends, along with snacks like Ube popcorn, Fridays - Sundays 5 - 9 p.m.
Billed as “part tea lounge, part interactive art installation, and part intimate gathering space,” Bu Tea Den isn’t just a place where you can come to enjoy a strong cup of jasmine tea: it’s also gearing up to become a community-oriented event space. Guests can come by for regular events like Mahjong at the Den, a Hong Kong style version of the popular game, or an upcoming "Tea and Tease" burlesque and comedy night on Saturday Jan. 17.
David Wagner
covers housing in Southern California, a place where the lack of affordable housing contributes to homelessness.
Published January 7, 2026 4:12 PM
President Donald Trump speaks to reporters about auto tariffs after signing an executive order in the Oval Office at the White House on March 26.
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Topline:
Homeownership has become increasingly out of reach for many young families, especially in pricey California. President Donald Trump now says he plans to make housing affordable again by cutting deep-pocketed investors out of the single-family home market.
What it could mean for CA: But in California, housing policy experts say Trump’s strategy might not move the needle on affordability very much. That’s because institutional investors aren’t buying many single-family homes in the Golden State to begin with.
The numbers: Statewide, 2.8% of single-family homes are owned by investors who own 10 properties or more. That’s according to the California Research Bureau, which produces nonpartisan policy research for the Governor’s Office and the State Legislature.
Read on … to learn why Trump’s idea overlaps with proposals that have already been forwarded by California Democrats.
Homeownership has become increasingly out of reach for many young families, especially in pricey California. On Wednesday, President Donald Trump said he plans to make housing affordable again by cutting deep-pocketed investors out of the single-family home market.
“I am immediately taking steps to ban large, institutional investors from buying more single-family homes, and I will be calling on Congress to codify it,” Trump said on the social media platform Truth Social. “People live in homes, not corporations.”
But in California, housing policy experts say Trump’s strategy might not move the needle on affordability much. That’s because institutional investors aren’t buying many single-family homes in the Golden State to begin with.
“It's kind of a red herring,” said Richard Green, director of the USC Lusk Center for Real Estate. “Institutional ownership of single-family rentals is a very small share of all single-family rentals, let alone all of the housing stock in the United States.”
Less than 3% of CA homes
Trump’s idea is not new. Democratic California lawmakers have also proposed limits on investor home-buying. To inform the legislative process, state researchers have looked into the question of how California homes are getting scooped up by institutional buyers.
The answer: Not many.
Statewide, 2.8% of single-family homes are owned by investors who own 10 properties or more. That’s according to the California Research Bureau, which produces nonpartisan policy research for the Governor’s Office and the state Legislature.
According to the Urban Institute, large investors own a much greater stock of single-family homes in cities including Jacksonville, Charlotte and Atlanta, where institutional investors own nearly 29% of single-family rentals.
Corporate ownership rates are much lower in California. In Los Angeles County, home to more than 10 million people, only about 72,474 homes are owned by large investors, according to the California Research Bureau. That number includes single-family homes as well as condos, townhomes and duplexes.
Would banning corporate owners reduce competition?
Invitation Homes is the largest owner of single-family homes in California, with more than 11,000 properties to its name statewide, including about 3,100 in Los Angeles County. Its business model involves buying single-family homes, updating them and then renting them out to tenants who may not otherwise be able to afford home-ownership.
LAist reached out to Invitation Homes for comment on Trump’s announcement. We were sent a statement from the National Rental Home Council.
“Housing affordability is a critical issue, and we appreciate the administration’s focus on ensuring Americans have access to a diverse mix of housing options,” the statement read.
The statement continued: “Professional single-family housing providers represent a small segment of the overall housing market, and the single-family rental industry remains focused on supporting renters while also supporting pathways to homeownership.”
David Garcia, deputy director of policy at UC Berkeley’s Terner Center for Housing Innovation, said getting rid of institutional investors probably wouldn’t do much to bring down home prices for young Californians.
“The vast, vast majority of homes that are purchased are by people who are generally going to live in them,” Garcia said. “So you're not really reducing the main competition for home buyers, which is other home buyers.”
Lack of supply, lots of demand fuel CA’s high prices
Garcia and USC’s Green both said California’s home prices are high because of lack of supply. Steady demand for California homes coupled with low building rates since the Great Recession have produced a market where the wealthiest buyers out-bid everyone else for the few homes coming up for sale.
Trump’s proposal echoes similar policy explorations from the L.A. City Council, which voted in 2021 to consider banning companies like Zillow and Redfin from buying homes within the city.
Details were scant in Trump’s post, but he said more information about his plans would be forthcoming.
In his Truth Social post, he said: “I will discuss this topic, including further Housing and Affordability proposals, and more, at my speech in Davos in two weeks.”
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Jill Replogle
covers public corruption, debates over our voting system, culture war battles — and more.
Published January 7, 2026 4:07 PM
The Ronald Reagan Federal Building & US Courthouse building in Santa Ana.
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Topline:
An Orange County judge is resigning, his lawyer says, as part of a plea deal for his role in defrauding California’s workers compensation fund.
Who’s the judge? Israel Claustro, a longtime prosecutor who won election to Orange County Superior Court in 2022.
What did he do? While working as an O.C. prosecutor, Claustro also owned a company that billed the state for medical evaluations of injured workers. That was illegal because, in California, you have to be licensed to practice medicine to own a medical corporation.
Anyone else involved? Claustro’s partner in the business was a doctor who had previously been suspended for health care fraud, and therefore was prohibited from being involved in workers’ comp claims. Claustro knew this, and paid him anyway, according to court filings from the U.S. Attorney’s Office.
What’s in the plea deal? The deal requires Claustro to resign as a judge and plead guilty to one count of mail fraud. He could be sentenced to up to 20 years in prison, but the U.S. Attorney’s Office is recommending probation instead, as part of the deal.
In an email to LAist, Claustro’s lawyer, Paul Meyer, said his client “deeply regrets” his wrongful participation in the business venture, and was resigning as judge “in good faith, with sadness.”
What’s next: Claustro is expected to make his initial appearance Jan. 12 in United States District Court in Santa Ana.
Makenna Sievertson
breaks down policies and programs with a focus on the housing and homelessness challenges confronting some of SoCal's most vulnerable residents.
Published January 7, 2026 3:10 PM
RVs and a homeless encampment in the city of Los Angeles.
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Allen J. Schaben
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Topline:
A coalition of housed and unhoused residents in West L.A. is asking a court to stop the city of Los Angeles from moving ahead with a pilot program that allows local officials to remove and dismantle more recreational vehicles the city deems a nuisance.
Why it matters: The move from the CD11 Coalition for Human Rights comes in response to a new state law that gives L.A. County the authority to dispose of abandoned or inoperable RVs worth up to $4,000, a major increase from the previous $500 threshold.
The backstory: There are more than 3,100 RVs parked across the city of L.A. being used as improved housing, according to last year’s homeless count estimates from the Los Angeles Homeless Services Authority.
The move from the CD11 Coalition for Human Rights comes in response to a new state law that gives L.A. County the authority to dispose of abandoned or inoperable RVs worth up to $4,000, a major increase from the previous $500 threshold.
In its petition for a writ of mandate from the Superior Court, the coalition argues the law gives that authority only to the county of Los Angeles — not the city. Members of the coalition claim the city is “recklessly charging ahead” with a program it’s not authorized to execute.
“The city’s actions are illegal and will harm vulnerable Angelenos who live in these RVs, while unlawfully wasting taxpayer resources on activities that exceed the city’s authority,” court documents state.
Some city officials who support the new law say L.A. must have the tools to get unsafe and unsanitary RVs off the streets for good.
There are more than 3,100 RVs parked across the city of L.A. being used as improved housing, according to last year’s homeless count estimates from the Los Angeles Homeless Services Authority.
“These vehicles create unacceptable health, environmental, and safety risks, putting entire neighborhoods, critical infrastructure, and sensitive environmental areas at risk,” Councilmember Traci Park said in a statement. “Residents want solutions, not ideological wars, delay tactics, and frivolous lawsuits.”
LAist reached out to other city officials for comment but, so far, they have not responded.
How we got here
Park, who represents communities including Venice and Culver City in District 11, introduced a motion in October instructing various city departments to “immediately implement” expanded RV enforcement, about a week after AB 630 was signed by Gov. Gavin Newsom.
According to the motion, the new law “is one more tool to stop the RV to streets pipeline” and complements the city’s efforts to crack down on “van-lords.”
Attorneys for the Coalition for Human Rights, who include some from the American Civil Liberties Union Foundation of Southern California, the Legal Aid Foundation of Los Angeles and the Western Center on Law and Poverty, sent a demand letter to L.A. City Attorney Hydee Feldstein Soto on Dec. 18 explaining its arguments.
“The City’s planned implementation of AB 630 is illegal,” attorneys wrote in the letter, which also argued the city would be “liable for any damages for property if illegally removed, withheld, or destroyed.”
The letter gave L.A. officials until Dec. 29 to confirm that the city would not implement the new law.
City officials did not respond, according to Shayla Myers, senior attorney with the Unhoused People's Justice Project at the Legal Aid Foundation of Los Angeles.
The coalition is now asking a judge to resolve the dispute.
“The city of Los Angeles and the City Council in its rush to criminalize homelessness, you know, rushed past the plain language of the statute and instructed city employees effectively to violate the law,” Myers told LAist. “That kind of rushing to criminalize homelessness is the type of action that leads to bad policy making, but it also leads to lawsuits.”
Myers said legal matters like this don’t help get people off the street, but they’re necessary when the city refuses to obey the law and to respect the rights of people experiencing homelessness.
What officials say
L.A. City Attorney Hydee Feldstein-Soto’s office did not immediately respond to LAist’s requests for comment on the writ or demand letter.
Mayor Karen Bass proposed AB 630 in partnership with Assemblymember Mark González, who introduced the California assembly bill. According to González’s office, the new law aims to boost public safety, address environmental concerns and “complement programs like Mayor Bass' Inside Safe initiative.”
Inside Safe is Bass’ flagship homelessness program that aims to move people off the street and into housing.
Bass' office has called AB 630 “landmark legislation.”
“For too long, bad actors have preyed on unhoused Angelenos and families through a cycle of buying and auctioning off broken down, inoperable RVs that are dangerous for those inhabiting them and for surrounding areas — they catch on fire and can become death traps, not the type of RVs safe to be used for housing,” representatives from Bass' office previously said in a statement to LAist.
Representatives from González’s office didn’t immediately respond to LAist’s request for comment on the writ.
LAist has also reached out to City Administrative Officer Matt Szabo, whose office is involved with coordinating the removal of RVs from L.A. streets. Szabo did not immediately respond.
