Gavin Newsom Has A New Problem - $1 Billion Fraud Scheme Discovered
Los Angeles has a homeless crisis. Everyone knows this. What California GOP gubernatorial candidate Steve Hilton’s walk through Skid Row just exposed is something considerably darker than simple government incompetence: there is an organized, well-funded operation actively working to make sure the crisis never ends.
Meet LA CAN — the Los Angeles Community Action Network. While Karen Bass holds press conferences about her commitment to solving homelessness and Gavin Newsom crisscrosses the country pretending California is fixable, LA CAN has been in the courts blocking every attempt to actually clear encampments, remove drug users from public sidewalks, and restore basic safety to neighborhoods that have been abandoned by the government supposedly responsible for them.
Their legal theory is breathtaking in its cynicism: homeless individuals camping illegally on public sidewalks have personal property rights that police cannot violate by enforcing the law. The courts, remarkably, have entertained this argument long enough to give LA CAN repeated injunctive wins against cleanup operations. When Hilton walked through Skid Row and asked why police weren’t clearing the encampments he was stepping around, the answer was simple: LA CAN had obtained legal orders preventing it.
Here is the economic reality that explains everything you need to know about LA CAN’s actual incentives. The city of Los Angeles is spending nearly $1 billion annually on homelessness — and the problem keeps growing. LA CAN has positioned itself as the indispensable advocacy organization standing between the homeless population and whatever the city is trying to do about it. Money flows to LA CAN because homelessness exists. The moment homelessness is meaningfully reduced, the money stops. So does the relevance. So does the organizational purpose.
This is not speculation. It’s the inevitable logic of activist organizations that have confused their existence with their mission. LA CAN was supposedly founded to help homeless people. It now deploys lawyers to prevent the city from removing homeless people from sidewalks where they are actively dying of drug overdoses. It has a choral group — the Freedom Singers, composed of formerly homeless individuals — that has appeared on national television to raise the organization’s profile and drive donations. The formerly homeless members are now raising money for an organization legally fighting to keep people in the condition they escaped.
You genuinely cannot make it make sense. Unless you follow the money. Then it makes perfect sense.
Karen Bass’s office, according to reporting from Hilton’s walkthrough, actively coordinates with LA CAN — the same organization blocking her own city’s cleanup efforts. This is the California Democratic machine in perfect miniature: politicians who campaign on solving a crisis, nonprofits that fundraise off the crisis, lawyers who litigate to preserve the crisis, and residents who live with the consequences of all three.
One billion dollars a year. Skid Row looks exactly like it did a decade ago.
California doesn’t have a homelessness problem. It has a corruption problem. The homelessness is just the most visible symptom.
Thune Breaks With Trump, Backs Cornyn After Paxton Endorsement
Senate Majority Leader John Thune said Tuesday he will continue supporting Sen. John Cornyn despite President Donald Trump endorsing Texas Attorney General Ken Paxton in one of the most closely watched Republican Senate primaries of the 2026 cycle.
Speaking to reporters following Trump’s endorsement announcement, Thune praised Cornyn as “a principled conservative” and an “effective senator” for Texas, signaling a rare split between Senate Republican leadership and the president.
“Cornyn is a principled conservative. He is a very effective senator for the state of Texas,” Thune said.
“None of us can control what the president does. That doesn’t change the way I feel. I will continue to be supportive of Senator Cornyn in his re-election,” Thune added.
The comments came just hours after Trump formally endorsed Paxton on Truth Social, delivering a major boost to the Texas attorney general as he seeks to unseat Cornyn in the Republican runoff election.
In his endorsement, Trump criticized Cornyn for insufficient loyalty during politically difficult periods of his presidency.
“Ken Paxton has been a warrior for Texas values and for our America First agenda,” Trump wrote. He added that Cornyn “was not supportive of me when times were tough.”
The endorsement immediately intensified an already bitter and nationally significant Republican primary battle that has exposed growing tensions inside the GOP between establishment Senate Republicans and Trump-aligned populists.
Early voting in the runoff began Monday and continues through Friday, with Election Day set for May 26.
Despite the internal divisions, Thune expressed confidence Republicans would retain control of the Senate in November.
“I’m very confident we’ll hang on — and maybe even expand the majority of the United States Senate,” Thune said.
Republicans currently hold a six-seat Senate majority. Democrats would need a net gain of four seats to retake control of the chamber.
Several races, including contests in Maine, Michigan, and North Carolina, are currently viewed as highly competitive.
The Texas race has become particularly important because Democrats believe a bruising Republican runoff could weaken the eventual GOP nominee heading into the general election against Democratic candidate James Talarico.
Recent polling has suggested an unusually competitive general election environment in Texas. One survey released Monday reportedly showed both Cornyn and Paxton running roughly even with Talarico in hypothetical head-to-head matchups.
That possibility has alarmed some Republicans, particularly moderates concerned that Paxton’s legal controversies and polarizing political image could jeopardize a seat long considered safely Republican.
Sen. Lisa Murkowski openly criticized Trump’s endorsement Tuesday, warning it could backfire politically.
“I was supremely disappointed,” Murkowski said. “How does that help strengthen the president’s hand when we lose a state like Texas?”
Paxton has remained a dominant figure among Texas conservatives despite years of legal and political controversies, including securities fraud charges that were later resolved and an impeachment battle in the Texas legislature from which he was ultimately acquitted by the state Senate.
Trump allies have framed the race as a test of loyalty to the president and the broader America First movement, while Cornyn supporters argue the longtime senator offers stability, fundraising strength, and legislative experience critical for maintaining Republican control of the Senate.
Cornyn, who has served in the Senate since 2002 and previously chaired the National Republican Senatorial Committee, has longstanding ties to GOP leadership and donor networks in Washington. But critics on the right have increasingly portrayed him as part of the party establishment out of step with the Republican base.
Paxton has sought to capitalize on that frustration, presenting himself as a fighter aligned more closely with Trump’s populist agenda on immigration, election integrity, and federal power.
The runoff has also become a broader proxy battle over the future direction of Senate Republicans after Trump’s sweeping victories reshaped the party.
I Thought I Was Providing for My Son
I CAME HOME FROM MY BUSINESS TRIP A DAY EARLY TO SURPRISE MY FAMILY, BUT MY BLOOD RAN COLD WHEN I HEARD MY SON BEGGING FOR HELP FROM A LOCKED DOG KENNEL WHILE HIS STEPMOTHER ENTERTAINED HER WEALTHY FRIENDS.
I always thought I was building a life that would protect my son.
That was the lie I told myself every time I boarded another plane, took another meeting, or signed another contract. I told myself that the money, the massive house in the Connecticut suburbs, and the private schools were all a fortress I was building around little Leo.
Since my first wife, Claire, passed away from cancer four years ago, it had just been the two of us against the world. Leo was only four when she died. He barely remembered her voice, but he had her gentle, quiet soul.
He was a sweet kid. The kind of kid who would spend three hours drawing a picture of a superhero just to slip it under my home office door while I was on a conference call.
He was my entire world. And I thought I had done everything right to secure his future.
Three years ago, I met Vanessa.
Vanessa was stunning, polished, and carried herself with an elegance that made her the center of attention in any room. She was an art director, raised in old-money circles, and she seemed to know exactly how to navigate the complicated world of my growing tech company.
More importantly, she was incredibly kind to Leo when we were dating. She would buy him expensive educational toys, sit with him on the floor, and talk to him about his drawings.
When I asked her to marry me, I honestly believed I was giving my son a mother. I thought I was fixing our broken family.
I was a fool. A blind, naive, stupid fool.
The signs were there, but I was too busy closing deals in London, San Francisco, and Tokyo to see them.
Over the last year, Leo had become quieter. He stopped slipping drawings under my door. He stopped asking to play catch in the backyard.
When I asked Vanessa about it, she just smiled perfectly, adjusted her designer cardigan, and said, "He's just growing up, honey. Boys go through these phases. I'm teaching him boundaries and discipline. He needs a firm hand, not a friend."
I trusted her. I thought she knew better than me. I thought she was just being a strong mother figure.
God, I want to punch my own reflection in the mirror when I think about how blindly I trusted that woman.
It was a beautiful Thursday afternoon in late September. The air was crisp, the leaves in our affluent neighborhood were just starting to turn golden, and I was in an Uber pulling into my own driveway.
I was supposed to be in Chicago until Friday night. But my meetings wrapped up early, and instead of staying in the hotel, I booked the first red-eye flight back to New York.
I didn't call Vanessa. I didn't text my assistant. I just wanted to go home, walk through the front door, and surprise my family.
In my suitcase, I had a vintage comic book I’d hunted down specifically for Leo. I could already picture the bright, toothy smile on his face when he saw it.
As the Uber rolled through the massive wrought-iron gates of our estate, I frowned.
The sprawling circular driveway was packed with luxury cars. Mercedes, Range Rovers, a few Porsches.
I paid the driver, grabbed my suitcase, and stepped out onto the cobblestone. The sound of clinking champagne glasses and high-pitched laughter drifted around the side of the house from the backyard.
Vanessa was hosting one of her luncheons. She loved doing this—inviting the wives of my investors and local socialites over to drink expensive wine, eat tiny sandwiches, and gossip under the shade of our massive oak trees.
Normally, I would just walk through the front door, go up to my room, take a shower, and avoid the social circus entirely.
But I missed my son.
I figured Leo was probably upstairs in his playroom, or maybe sitting quietly on the edge of the patio reading a book while the adults mingled.
Instead of going through the front door, I decided to walk around the side of the house. Our property is massive—almost three acres of perfectly manicured lawns, tall hedges, and old stone pathways.
I dragged my suitcase behind me, the wheels clicking softly against the flagstone path that wrapped around the east wing of the house.
The closer I got to the backyard, the louder the voices became. I could hear Vanessa holding court. Her laugh was bright, sharp, and commanding.
I paused behind a tall wall of hydrangeas, just out of sight of the main patio. I didn't want to make a grand entrance. I just wanted to spot Leo, catch his eye, and motion for him to come inside so I could give him his gift.
I peeked through the leaves.
The patio looked like a magazine spread. White linen tables, silver trays of hors d'oeuvres, and about a dozen women in expensive summer dresses, sipping mimosas.
I scanned the patio. No Leo.
I looked toward the swimming pool. The water was still, glistening in the sun. No Leo.
I looked up at the windows of his playroom on the second floor. The curtains were drawn.
A sudden, uneasy feeling settled in the pit of my stomach. It was that primal, fatherly instinct that tells you when something isn't right. The air suddenly felt a little too thin.
And then, I heard it.
It was faint. So faint it was almost drowned out by the sound of a woman laughing about a country club membership.
But I heard it.
A soft, desperate whimper.
“Please…”
I froze. My blood turned into ice water.
I knew that voice. A father knows the sound of his own child’s voice, even in a crowded room, even over a raging storm.
I let go of my suitcase handle. It tipped over and hit the grass with a soft thud.
I stepped away from the patio and walked deeper into the yard, moving away from the party.
The sound was coming from the far corner of the property. Behind the guest house.
There was a section of the yard back there that we never used. It was heavily shaded by old, twisted trees, and the ground was mostly dirt and weeds. Years ago, before Claire died, we had a Golden Retriever named Max. We had built a heavy-duty chain-link kennel back there for him to stay in when we had work crews at the house.
Max had been dead for five years. We hadn't used that kennel since. It was rusted, covered in overgrown ivy, and practically abandoned.
“Please, let me out… I’m sorry…”
The voice was clearer now. And it was definitely Leo.
My heart began to hammer against my ribs. It wasn't beating; it was violently slamming into my chest. My breath caught in my throat.
I started running.
I sprinted across the perfectly cut grass, my dress shoes slipping slightly on the morning dew that still clung to the shaded areas. I pushed past the overgrown bushes that blocked the path to the old dog run.
I rounded the corner of the guest house.
The air left my lungs in a single, painful rush.
The old metal dog kennel sat in the dark shadows of the trees. The concrete floor inside was cracked and stained with dirt.
And sitting on that cold, filthy concrete, curled into a tight, trembling ball, was my eight-year-old son.
He was wearing his school uniform—a white button-down shirt and navy slacks—but the shirt was covered in dark smears of dirt. His knees were pulled tight to his chest, his face buried in his arms.
He was shivering uncontrollably.
"Leo?" I choked out. My voice didn't even sound like my own. It sounded broken.
His little head snapped up.
His face was streaked with tears and dirt. His eyes were wide, red, and completely swollen from crying. When he saw me, a look of pure, desperate relief washed over him, followed immediately by sheer terror.
“Daddy?” he whispered, his voice hoarse and raw. “Daddy, I’m sorry. I’m sorry. I’ll be good. Please, don't let her see you talking to me. She’ll leave me in here overnight again. Please!”
Overnight again?
The words hit me like a physical blow to the face. The world tilted on its axis. My vision literally blurred red around the edges.
I rushed to the chain-link gate and grabbed the handle.
It didn't budge.
I looked down. Wrapped through the rusted latch of the heavy steel door was a thick, silver Master Lock.
My son was padlocked inside a dog cage.
I grabbed the thick steel wire of the fence, my fingers gripping it so hard the metal dug into my skin.
“Leo,” I said, trying to keep my voice steady, trying not to scream in absolute agony and rage. “How long have you been in here, buddy?”
He hiccuped, wiping his dirty face with his sleeve. “Since I got home from school yesterday. I... I accidentally spilled a little bit of juice on the white rug in the living room. Vanessa said... she said animals who make messes have to sleep outside where they belong.”
Yesterday.
He had been locked in an outdoor dog cage for nearly twenty-four hours. Through the cold autumn night. Without a blanket. Without food.
While I was sleeping in a warm bed in a luxury hotel in Chicago, completely oblivious.
I felt a scream building in the very bottom of my stomach. A dark, violent, terrifying scream.
Suddenly, a voice drifted over the tall hedges from the patio. It was loud, clear, and perfectly articulated.
It was Vanessa.
“Oh, don’t worry about Leo today, ladies,” I heard her say smoothly, followed by the delicate clink of glass. “He’s having a bit of a timeout. You know how little boys can be. Sometimes you just have to break their spirit a little bit to teach them how to behave in a civilized home. It’s tough love, but Mark leaves all the parenting to me, thank God.”
Laughter erupted from her friends. A chorus of wealthy, ignorant, enabling laughter.
I stood up slowly.
I looked down at my hands. They were shaking. Not from fear, but from a type of homicidal rage I had never experienced in my thirty-eight years of life.
I looked back at my beautiful, innocent, terrified son behind the rusted steel mesh.
“Leo,” I whispered, my voice completely devoid of emotion, cold as absolute zero. “Cover your ears, buddy. Daddy is going to get you out. And then Daddy is going to have a very loud conversation with Vanessa.
