Category: Business

California Governor Gavin Newsom has introduced a revised 2026-27 state budget plan that his office says wipes out the state’s projected deficit through July 2028 while continuing funding for major public programs.

The proposal, released in Sacramento on May 14, 2026, presents a sharp fiscal message: no deficit in the current budget year, no deficit in the next budget year, and no structural deficit through July 2028.

Spending Cut Paired With Reserve Strategy

The revised plan includes a $1.8 billion reduction in General Fund spending. Newsom’s administration says the move is part of a broader effort to stabilize California’s finances over multiple years.

The budget also places $9.7 billion into the state’s Surplus Holding Account, a step meant to help future fiscal years and prevent the state from committing uncertain revenue too quickly.

Nearly $30 Billion in Reserves Maintained

Despite the spending reduction, the proposal keeps California’s combined reserves near $30 billion. According to the Governor’s office, reserves have grown by 30% since Newsom became governor.

The administration says the revised plan avoids major new ongoing General Fund commitments and instead focuses on fiscal restraint, budget stability, and preparation for future economic risks.

Core Services Remain Protected

Newsom argued that California can reduce spending while still protecting healthcare, education, and essential services.

The revised budget includes a $300 million healthcare affordability investment, which the Governor’s office linked to the failure to renew Affordable Care Act subsidies under President Trump.

Education and Schools Receive Major Funding

The proposal also includes a record $5 billion block grant for priorities such as teacher training and support.

Special education would receive a $2.4 billion ongoing increase, described by the Governor’s office as the largest special education investment in California history.

Another $500 million would go toward literacy and math support in high-need schools.

Small Businesses, Housing, and Disaster Recovery Included

The budget proposes a 50% tax cut for hundreds of thousands of new small businesses through reduced LLC fees.

It also includes a new $100 million disaster rebuilding fund aimed at helping wildfire survivors rebuild their homes.

Housing remains part of the plan, with proposed reforms intended to lower construction costs and increase affordable housing production.

Impact and Consequences

The revised budget gives Newsom a stronger fiscal argument at a time when California faces economic uncertainty and political pressure over spending.

If approved, the plan would reduce California’s short-term deficit concerns while preserving major investments in healthcare, schools, housing, disaster recovery, clean energy, public safety, and natural resources.

However, the proposal also signals a more cautious spending approach, with fewer new long-term commitments and a stronger emphasis on reserves.

What’s next?

The revised budget will now move through negotiations with state lawmakers before a final spending plan is adopted.

Key areas to watch include how legislators respond to the proposed spending reductions, reserve strategy, education funding, healthcare affordability measures, and housing reforms.

Summary

Governor Gavin Newsom’s revised 2026-27 California budget proposal eliminates the projected deficit through July 2028, reduces General Fund spending by $1.8 billion, maintains nearly $30 billion in reserves, and continues investments in major public services.

The plan combines fiscal restraint with targeted funding for healthcare, education, small businesses, housing, disaster recovery, and affordability programs.

Bulleted Takeaways

• Newsom’s revised budget projects a $0 deficit this year and next year.
• The plan eliminates California’s structural deficit through July 2028.
• General Fund spending would be reduced by $1.8 billion.
• California would place $9.7 billion into the Surplus Holding Account.
• The state would maintain nearly $30 billion in combined reserves.
• The proposal includes $300 million for healthcare affordability.
• Schools would receive major investments, including $5 billion for education priorities.
• Special education would receive a $2.4 billion ongoing increase.
• New small businesses would benefit from lower LLC fees.
• A $100 million disaster rebuilding fund would support wildfire survivors.

Ukrainian President Volodymyr Zelenskyy said he held a productive meeting with Alex Karp, the CEO of Palantir Technologies, as Kyiv continues to deepen cooperation with the American defense and technology sector.

Zelenskyy described the meeting as part of Ukraine’s step-by-step effort to build stronger partnerships with U.S. companies that can contribute to modern defense capabilities.

Ukraine Looks to Strengthen Military and Civilian Technology

During the discussion, Zelenskyy said both sides reviewed possible areas of technological development. The talks covered tools that could support combat operations, as well as systems that may help address civilian needs during wartime.

Palantir, which is known globally for its data analytics and software platforms, was described by Zelenskyy as a company with major potential for cooperation.

Kyiv Sees Shared Benefits With U.S. Defense Partners

Zelenskyy said Ukraine and Palantir could be useful to one another in ways that strengthen the security of Ukraine, the United States, and allied partners.

His remarks suggest Kyiv is looking beyond immediate battlefield requirements and focusing on broader technological systems that could support long-term defense planning, intelligence use, logistics, and civilian resilience.

Teams Will Continue Discussions

The Ukrainian leader said both sides agreed to keep their teams in contact after the meeting.

While no specific agreement was publicly announced, the meeting signals continued interest in closer cooperation between Ukraine and major American defense-linked technology companies.

Impact and Consequences

The meeting could further accelerate Ukraine’s use of advanced data systems, artificial intelligence tools, and battlefield technology as the war continues.

Closer cooperation with Palantir may also strengthen Ukraine’s ties with the American defense sector, giving Kyiv access to expertise that could improve decision-making, operational coordination, and wartime infrastructure support.

For Palantir and other U.S. technology firms, Ukraine remains a major real-world test case for modern defense software and digital battlefield systems.

What’s Next?

Ukraine and Palantir are expected to continue technical discussions through their respective teams.

Future cooperation may focus on defense operations, civilian infrastructure protection, data-driven planning, and broader security coordination with Ukraine’s partners.

Kyiv is likely to keep pursuing similar partnerships with American technology and defense companies as it works to modernize its wartime capabilities.

Summary

Zelenskyy met with Palantir CEO Alex Karp to discuss expanding cooperation between Ukraine and the American defense technology sector. The talks focused on technological development for both battlefield use and civilian needs, with both sides agreeing to remain in contact.

Bulleted Takeaways

• Zelenskyy held a meeting with Palantir CEO Alex Karp.
• Ukraine is expanding cooperation with the American defense sector.
• The talks focused on technology for combat operations and civilian needs.
• Zelenskyy called Palantir a global company with strong potential.
• Kyiv believes cooperation could benefit Ukraine, the U.S., and allied partners.
• No specific deal was announced publicly.
• Both teams agreed to continue communication.
• The meeting reflects Ukraine’s push for stronger defense-tech partnerships.

Meta is facing internal backlash after employees reacted angrily to a new workplace tracking system designed to help train the company’s AI assistants.

The system, announced in an internal post last month, allows artificial intelligence tools to observe how workers use their company laptops during daily tasks, including clicks and keystrokes.

According to the internal announcement cited in reports, Meta said the goal was to give AI agents real examples of how people complete ordinary computer-based work.

Staff Fear They Are Training Their Own Replacements

The announcement sparked hundreds of emotional reactions from employees, including angry and shocked emojis.

Several staff members reportedly raised concerns that the technology could eventually be used to replace them, with some saying they felt they were being asked to help build the very AI systems that might make their jobs unnecessary.

One engineering manager reportedly wrote that the system made them deeply uncomfortable and asked how employees could opt out.

Meta CTO Says Workers Cannot Opt Out on Company Laptops

Meta Chief Technology Officer Andrew Bosworth responded that workers would not be allowed to opt out of the program on company-issued laptops.

His response triggered further frustration among employees. One anonymous staff member reportedly accused Bosworth of showing a lack of concern for employee fears.

Other workers questioned whether collecting detailed information about employee behavior could create a security risk, especially if sensitive internal data were included in the training process.

Company Says Data Is Tightly Controlled

Bosworth defended the program, saying the data would be tightly controlled and would not create a leak risk.

Meta spokesperson Tracy Clayton also said the tracking system was created only to improve AI products. He said safeguards were in place to protect sensitive content and that the data would not be used for any other purpose.

The company has also maintained that the system is not intended for surveillance, performance tracking or employee monitoring.

Zuckerberg Expands Meta’s AI Push

The dispute comes as Mark Zuckerberg continues to push Meta deeper into artificial intelligence.

Meta has invested heavily in AI in recent years and has integrated AI features across products such as Facebook and Instagram.

Zuckerberg has described AI as one of the most competitive fields in history, and the company’s roughly 78,000 employees have been encouraged to adapt to changing AI-focused workplace policies.

Layoff Plans Add to Employee Anxiety

The controversy has been intensified by separate reports that Meta plans to reduce its workforce by about 10 percent to help offset major investments, including spending on AI.

Meta’s head of human resources, Janelle Gale, reportedly told employees that the workforce changes were meant to balance other investments the company is making.

She acknowledged that the waiting period before the cuts would leave workers facing uncertainty and anxiety. Employees reportedly said the layoffs were expected to take effect on May 20.

Impact and Consequences

The tracking system has deepened concerns among Meta employees already worried about job security, layoffs and the growing role of AI inside the company.

For workers, the biggest fear is not simply that AI will be used to improve productivity, but that their own work habits could be used to train systems capable of replacing them.

The dispute also raises broader questions about workplace consent, data privacy and the limits of employer control over company devices.

For Meta, the backlash shows the challenge of aggressively pursuing AI development while trying to maintain trust among employees who may feel exposed, monitored or expendable.

What’s next?

Meta is expected to continue investing heavily in AI and expanding the use of AI tools across its platforms and internal operations.

However, employee resistance may force the company to provide more clarity on what data is collected, how it is protected and whether it could influence future workforce decisions.

The expected layoffs could further inflame tensions if workers believe AI investments are directly tied to job cuts.

Summary

Meta employees reacted angrily after the company announced a new AI training system that can track clicks and keystrokes on company laptops.

The tool is meant to help AI agents learn how workers complete everyday computer tasks, but staff members raised fears about privacy, surveillance and job replacement.

Meta executives said the data is protected and not being used for performance monitoring, but the backlash comes as the company pushes deeper into AI and prepares for reported workforce reductions.

Bulleted Takeaways

• Meta introduced an internal AI tracking system for company laptops.
• The software can follow employee clicks and keystrokes during work tasks.
• The company says the goal is to train AI assistants on real workplace examples.
• Employees reacted with anger, concern and fear in internal comments.
• Some workers said they felt they were training their own AI replacements.
• Meta CTO Andrew Bosworth said employees cannot opt out on company laptops.
• Meta says the data is tightly controlled and not used for surveillance or performance tracking.
• The backlash comes as Meta continues investing heavily in artificial intelligence.
• Reported layoffs have added to anxiety among employees.
• The controversy raises questions about workplace privacy, consent and AI-driven job displacement.

Canada’s federal government says it is stepping up its fight against financial crime with a package of new measures aimed at fraud, money laundering, extortion, and illicit money flows.

Finance and National Revenue Minister François-Philippe Champagne outlined the government’s plans on May 6, 2026, while speaking at the Payments Canada Summit in Toronto.

The message from Ottawa was direct: criminals are using the financial system to hide dirty money, fund organized crime, and harm ordinary Canadians. The government says its latest measures are designed to make that harder.

Why Ottawa Says Action Is Needed

According to the Department of Finance Canada, money laundering is not just a financial problem. Officials say it helps support crimes such as fraud, theft, extortion, drug trafficking, gang activity, and violence in communities.

The government argues that when criminals can move and disguise illegal proceeds, they are able to keep operating and expanding.

That is why Ottawa says it is focusing on stronger enforcement, better financial intelligence, and tighter rules around high-risk tools that can be exploited by scammers and organized crime networks.

New Financial Crimes Agency Planned

One of the biggest proposals is the creation of a new Financial Crimes Agency.

The government says this would be Canada’s first federal law enforcement agency dedicated specifically to investigating complex financial crimes, including fraud and money laundering.

The agency would also focus on recovering illicit proceeds, meaning money and assets linked to criminal activity.

The proposal was first announced in Budget 2025. Legislation to create the agency was tabled on April 27, 2026, and funding for the plan was included in the Spring Economic Update.

FINTRAC to Receive New Funding for Extortion Cases

The Spring Economic Update also proposes $17.9 million in new funding for the Financial Transactions and Reports Analysis Centre of Canada, better known as FINTRAC.

The money would be used to help FINTRAC prioritize the detection, deterrence, and disruption of illicit financing connected to extortion.

The government says this is especially important as extortion increasingly threatens communities, families, and small business owners.

Officials also said the new funding builds on earlier measures announced on February 19, 2026, as part of Ottawa’s broader push against organized crime and financial exploitation.

Canada Proposes Ban on Crypto ATMs

Another major proposal is a ban on crypto ATMs.

The government says crypto ATMs are being targeted because they are considered a high-risk tool for criminals and scammers. Officials argue that these machines can be used to move money in ways that support fraud, drug trafficking, extortion, and other financially motivated crimes.

Ottawa says the proposed ban is meant to protect Canadians from fraud and reduce the use of crypto-related channels for illegal activity.

Government Says Regulated Crypto Platforms Can Still Operate

The proposed crypto ATM ban does not mean Canada is rejecting cryptocurrency or blockchain technology altogether.

The government says Canadians would still be able to use regulated in-person and online cryptocurrency platforms.

Officials argue that regulated platforms offer a safer and more transparent environment because they can apply “know your client” controls and report suspicious transactions more effectively.

Ottawa also says it remains committed to responsible innovation in the digital asset space, including the planned implementation of the Stablecoin Act to support the adoption of stablecoins under clearer rules.

National Anti-Fraud Strategy in Development

Canada is also working on its first National Anti-Fraud Strategy.

The strategy is expected to coordinate anti-fraud efforts across financial institutions, telecommunications companies, and digital platforms.

The government says this is necessary because scams increasingly move across different systems. A fraud attempt may begin online, move through telecom channels, and then end with money being transferred through a financial platform.

Ottawa recently held a public consultation to gather feedback on possible measures. More updates on the strategy are expected in the coming months.

New Consumer Protections Added to the Bank Act

The federal government has also introduced new consumer protections through the Bank Act.

These changes are meant to give Canadians more control over their bank accounts and help protect them from fraud-related losses or suspicious activity.

The measures are part of a wider effort to make banks, payment systems, telecom providers, digital platforms, and enforcement agencies work together more effectively against fraud.

Broader Push Against Organized Crime

The financial crime measures are part of a larger federal effort to combat organized crime.

Ottawa says it is making major investments to strengthen the RCMP’s investigative capacity and improve coordination with law enforcement and intelligence partners.

The government says financial crime enforcement is central to public safety because criminal groups often rely on money laundering and hidden financial networks to continue operating.

Impact and Consequences

For Canadians, the proposed measures could mean stronger protection against scams, extortion, and financial abuse.

The crypto ATM ban would likely be one of the most visible changes. Supporters may see it as a direct response to fraud risks, while critics may argue it limits access to cryptocurrency tools.

The government’s position is that regulated crypto platforms remain available and provide stronger safeguards.

For criminals and organized groups, the new Financial Crimes Agency and expanded FINTRAC resources could increase pressure on money laundering networks and fraud operations.

For banks, telecom companies, crypto platforms, and digital platforms, the coming National Anti-Fraud Strategy may bring more expectations around reporting, prevention, customer protection, and coordination with authorities.

What’s Next?

The proposed Financial Crimes Agency still depends on legislation and funding moving through the federal process.

The government is also expected to provide more details in the coming months about the National Anti-Fraud Strategy and how new consumer protections will work in practice.

Ottawa will continue developing rules around stablecoins while moving forward with its plan to ban crypto ATMs and strengthen enforcement against financial crime.

Summary

The Government of Canada is introducing new measures to fight fraud, money laundering, extortion, and other financial crimes.

Finance Minister François-Philippe Champagne highlighted the plans at the Payments Canada Summit in Toronto on May 6, 2026.

The proposals include creating a new Financial Crimes Agency, giving FINTRAC $17.9 million to target illicit financing tied to extortion, banning crypto ATMs, developing a National Anti-Fraud Strategy, and adding new consumer protections through the Bank Act.

The government says the goal is to protect Canadians, support law enforcement, and make it harder for criminals to profit from illegal activity.

Bulleted Takeaways

• Canada is proposing stronger action against financial crime, fraud, money laundering, and extortion.
• Finance Minister François-Philippe Champagne discussed the measures at the Payments Canada Summit in Toronto.
• The government wants to create a new Financial Crimes Agency.
• The agency would be Canada’s first federal law enforcement body focused on sophisticated financial crimes.
• The proposed agency would investigate fraud and money laundering and help recover illicit proceeds.
• Legislation to create the agency was tabled on April 27, 2026.
• The Spring Economic Update proposes $17.9 million in new funding for FINTRAC.
• FINTRAC would use the funding to target illicit financing linked to extortion.
• The government is proposing a ban on crypto ATMs.
• Officials say crypto ATMs are a high-risk tool used by scammers and criminals.
• Canadians would still be able to use regulated online and brick-and-mortar crypto platforms.
• Ottawa says it remains committed to responsible blockchain innovation and stablecoin adoption.
• Canada is developing its first National Anti-Fraud Strategy.
• The strategy will involve the financial sector, telecom companies, and digital platforms.
• New Bank Act protections are intended to give consumers more control over their bank accounts.
• The measures are part of a wider federal push against organized crime and financial abuse.

DISH Wireless LLC has agreed to pay $17,280,240 to settle federal allegations that it improperly received money from government broadband assistance programs meant to help low-income households get internet service.

The Englewood, Colorado-based company, a wholly owned subsidiary of EchoStar Corporation, provides wireless telecommunications services in the United States through Boost Mobile.

Federal officials said the settlement resolves claims tied to the FCC’s Emergency Broadband Benefit Program and its successor, the Affordable Connectivity Program.

The allegations were brought under the False Claims Act, common law, and the Communications Act of 1934. Officials said the resolved claims remain allegations only, and there has been no determination of civil liability.

Federal Officials Say Program Rules Were Ignored

The Justice Department said companies that knowingly violate federal program rules and collect money they are not entitled to receive will face enforcement action.

Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division said the settlement reflects the department’s effort to protect the integrity of FCC programs.

U.S. Attorney Jeanine F. Pirro for the District of Columbia was more direct, saying DISH and its employees fraudulently enrolled ineligible applicants and received federal payments they should not have received.

FCC Inspector General Fara Damelin also said DISH continued seeking program funds for months after company executives learned about enrollment fraud by agents and after an FCC Office of Inspector General advisory warning.

What the Broadband Programs Were Designed to Do

The Emergency Broadband Benefit Program, known as EBBP, was created by Congress during the COVID-19 pandemic through the Consolidated Appropriations Act.

The program provided $3.2 billion in 2021 to help low-income consumers pay for discounted broadband services and devices.

Its successor, the Affordable Connectivity Program, or ACP, later provided an additional $14 billion for similar services between 2022 and 2024.

Consumers could qualify for the programs if they met income requirements or participated in certain federal, state, or Tribal assistance programs. Those programs included Medicaid, SNAP, Supplemental Security Income, and the National School Lunch Program.

How DISH Enrolled Subscribers

Between May 2021 and February 2022, DISH enrolled more than 130,000 subscribers into EBBP and ACP based on school-related eligibility.

The company relied on a rule connected to the Community Eligibility Provision, or CEP, which applies to schools in high-poverty areas where all students can qualify for free school breakfast and lunch.

For each eligible subscriber, DISH could receive up to $50 per month under EBBP and up to $30 per month under ACP.

Federal officials alleged that some of the subscribers enrolled by DISH agents under the CEP pathway were not actually eligible.

Allegations Against DISH and Its Sales Agents

The government alleged that DISH submitted claims from May 12, 2021, through February 28, 2022, for discounted broadband services and devices for subscribers who did not qualify.

Officials also said DISH failed to put effective policies in place to verify subscriber eligibility.

The government further alleged that DISH did not properly screen, train, or supervise third-party sales agents.

According to the allegations, some third-party agents were not properly registered in the Universal Service Administrative Company’s Representative Accountability Database.

Federal officials said internal DISH sales employees in Texas, Florida, New York, and West Virginia trained and directed third-party sales agents to submit customer applications with inaccurate school information.

Those agents allegedly submitted false or incomplete information into the FCC’s National Verifier, the system used to determine whether applicants qualified for the programs.

Questionable School-Based Enrollments Raised Red Flags

Federal investigators said DISH enrolled more than 16,000 households based on alleged attendance at a CEP school located more than 25 miles from the household address, without verified school attendance.

The government also alleged that DISH enrolled 130 households based on a claimed dependent over the age of 21 attending a CEP school.

In some cases, officials said DISH enrolled more households into the Emergency Broadband Benefit Program through certain CEP schools than the schools’ actual student enrollment.

The government further alleged that after DISH executives became aware of issues involving CEP enrollments, they failed to take corrective action between September 2021 and April 2022.

Additional Common Law Allegations

The settlement also resolves separate common law allegations.

Federal officials said DISH submitted claims for more than 66,000 subscribers whose applications did not identify a school-aged student.

The government also alleged that DISH enrolled more than 2,400 subscribers using duplicate beneficiaries as the basis for eligibility.

FCC Administrative Order Also Resolved

The civil settlement also resolves an administrative order issued by the FCC’s Wireline Competition Bureau involving similar allegations against DISH.

That order was released on January 17, 2025, in connection with a request for review involving DISH Wireless and decisions by the Universal Service Administrator.

Federal Fraud Enforcement Effort Continues

Officials said the DISH settlement comes as the administration continues a broader push against fraud, waste, and abuse in federal programs.

The government pointed to the creation of the Task Force to Eliminate Fraud and the National Fraud Enforcement Division as part of that effort.

Federal officials said fraudulent use of public assistance programs harms taxpayers, undermines businesses that follow the rules, and hurts the people those programs were designed to help.

The case was handled through a coordinated effort involving the Justice Department’s Civil Division, the U.S. Attorney’s Office for the District of Columbia, the FCC Office of Inspector General, and the FCC Office of General Counsel.

Impact and Consequences

The settlement puts DISH under a major financial penalty while also sending a warning to companies participating in federal benefit programs.

For taxpayers, the case highlights concerns about how public funds can be misused when companies fail to verify eligibility or properly supervise sales agents.

For low-income households, the allegations are especially serious because programs like EBBP and ACP were created to help people who genuinely needed support paying for broadband service.

The case also raises broader questions about oversight, third-party sales practices, and whether companies receiving federal subsidies have strong enough systems to prevent abuse.

What’s Next?

DISH will pay more than $17.2 million to resolve the allegations.

Federal agencies are expected to continue monitoring fraud risks in communications and benefit programs, especially where companies receive federal payments based on customer enrollment.

The Justice Department also signaled that False Claims Act enforcement will remain a major tool in its broader campaign against fraud in government-funded programs.

Summary

DISH Wireless has agreed to pay $17,280,240 to settle allegations that it improperly received federal funds from the FCC’s Emergency Broadband Benefit Program and Affordable Connectivity Program.

The government alleged that DISH enrolled ineligible subscribers, failed to properly supervise third-party sales agents, submitted claims based on inaccurate school eligibility information, and continued seeking funds even after learning about problems.

The settlement resolves civil allegations only, with no determination of civil liability.

Bulleted Takeaways

• DISH Wireless LLC agreed to pay $17,280,240 to settle federal allegations.
• The case involved the FCC’s Emergency Broadband Benefit Program and Affordable Connectivity Program.
• DISH is based in Englewood, Colorado.
• The company provides wireless services through Boost Mobile.
• Federal officials alleged DISH received payments for subscribers who were not eligible.
• The allegations were brought under the False Claims Act, common law, and the Communications Act of 1934.
• EBBP provided $3.2 billion in broadband support during the COVID-19 pandemic.
• ACP later provided another $14 billion between 2022 and 2024.
• DISH enrolled more than 130,000 subscribers using school-based eligibility connected to CEP schools.
• The government alleged some DISH employees and sales agents submitted inaccurate school information.
• More than 16,000 households were allegedly enrolled using schools located over 25 miles from their home addresses without verified attendance.
• More than 66,000 subscribers allegedly did not identify a school-aged student in their applications.
• More than 2,400 subscribers were allegedly enrolled using duplicate beneficiaries.
• Officials said DISH executives failed to take corrective action after learning about enrollment issues.
• The settlement also resolves an FCC administrative order involving similar allegations.
• The claims resolved by the settlement are allegations only, and there has been no determination of civil liability.