In Sacramento, California, a labor union responsible for a contentious tax proposal targeting the state’s billionaires has significantly revised its plan just one day after it qualified for the November ballot. Despite this adjustment, the union’s efforts have yet to sway Governor Gavin Newsom.

The Service Employees International Union Healthcare Workers West initially proposed a one-time 5% tax on individuals with a net worth exceeding $1 billion. This proposition has encountered resistance from various critics, including Governor Newsom, a Democrat. On Thursday, the union suggested it would retract the 5% tax if Newsom agreed to support a reduced 2% levy. However, to implement the revised proposal, it would require approval from the state Legislature before a June 25 deadline to qualify for the ballot.

Tara Gallegos, spokesperson for Governor Newsom, stated that the reduction does not address the proposal’s “fundamental flaws that harm working Californians.”

“Governor Newsom is in favor of ensuring the wealthiest Americans contribute their fair share. However, this state-specific measure is poorly designed and threatens funding for teachers, schools, clinics, and public safety,” Gallegos emphasized in her statement.

The proposed tax would apply to residents living in California as of January 1, 2026, and aims to generate $100 billion in revenue. The primary goal is to offset federal healthcare cuts affecting low-income individuals, with additional funds directed toward food assistance and educational programs.

“A 2% one-time tax on that accumulated wealth is modest by any objective measure especially if it means keeping emergency rooms open and saving patient lives,” backers wrote in a letter to Newsom.

Secretary of State Shirley Weber, a Democrat, said Wednesday night that petitioners collected more than the roughly 875,000 signatures needed to place the original proposal before voters.

States have been debating how to respond to the major tax breaks and spending cuts legislation President Donald Trump signed last year. The proposal has already divided Democrats and major labor unions and triggered an expensive campaign to defeat it. The proposed tax is backed by prominent progressives including Vermont Sen. Bernie Sanders.

Silicon Valley tech moguls have spent millions to defeat it, and prominent players in Sacramento have opposed it. They include the California Medical Association and California School Boards Association, which helped launch a committee this week urging voters to reject it if it ends up on the ballot in November. Newsom also opposed a ballot measure in 2022 to increase taxes on the wealthy, which would have funded programs that help people buy electric cars or install more chargers. Voters rejected it.

Critics say the original measure would decrease state revenue over time by pushing the ultrawealthy to leave, taking the money they would contribute in income taxes with them. That would deal a huge blow to a state that relies on its top 1% of earners for nearly half its personal income tax revenue.

“This flawed measure is the wrong approach for California’s small businesses and working families,” said Roger Salazar, a spokesperson for Golden State Promise, a political committee fighting the tax.

The nonpartisan Legislative Analyst’s Office estimates that the 5% tax would generate tens of billions of dollars in the first few years, but that income tax revenues could subsequently decline by hundreds of millions of dollars annually.

Since the proposal was announced in October, Google co-founder Sergey Brin has donated $82 million to a political committee called Building a Better California that backs a variety of initiatives designed to blunt the billionaire tax proposal. It has raised more than $118 million, counting Brin’s contributions, from fewer than a dozen donors.

State lawmakers passed budget bills this week that aim to raise revenue in other ways, including by extending a tax on healthcare providers. Newsom and legislative leaders agree to this approach, Senate President pro Tempore Monique Limón said.

“The budget, as approved by the Legislature and now being negotiated with the Governor, does not include the billionaire’s tax,” the Democrat said in a statement. “Instead, it reflects additional revenues to address our long-term structural deficit.”

The families of two college students who tragically drowned after being swept into the ocean have come forward to clarify details about the incident, refuting claims that the students were napping when the sudden tides struck.

On June 10, Harshita Nair, 21, and Mahial Sran, 20, both residents of Fremont, California, lost their lives to a ‘sneaker wave’ while sunbathing on Panther Beach in Bonny Doon, Santa Cruz.

Their path to safety was abruptly blocked by a massive wave that surged significantly further up the beach than any prior waves, catching them off guard.

Contrary to earlier reports, neither Nair nor Sran were asleep on the beach, according to Nair’s father, Ashok Nair, who spoke to the California Post to set the record straight.

“They weren’t sleeping there, because their bags were completely dry,” Ashok explained, noting that if the girls had been asleep, they wouldn’t have been away from their belongings.

‘If they were sleeping, their bags would also have gone with them or would have been completely wet,’ he noted. 

Sran’s teenage brother, Aagman, also noted that his sister was a responsible young woman who cared for him and all those around her.

‘She always took care of whatever needed to be done. She always delivered,’ he said. 

Harshita Nair, 21, a legal studies major at UC Berkeley, died close to the shore in Santa Cruz

Mahial Sran, 20, a public health BS at San José State University, also died in the tragedy

Cal Fire spokesman Michael Horn said officials were first alerted about the tragedy at 5pm and eight rescuers promptly swam into the dangerous waters to save the two longtime friends.

One of the rescuers, who did not want to be named, said he brought Sran ashore after diving into a six-foot break along with another responder. 

Nair had already been pulled from the ocean close to Yellow Bluff Beach. The pair had entered the shoreline via a keyhole in the rocks.

The term ‘keyhole’ refers to a section of shoreline that allows access to a smaller stretch of sand, but only when the tide is out or waves are not crashing through it. 

‘We go through that keyhole, and there’s waves crashing through it,’ the swimmer previously told the Post. ‘And then me and my partner, we start searching for the second victim.’

The rescuer said he saw the young woman floating face down, about 20 yards from the shore.  

‘I’m able to get her up on my chest and keep her airway out of the water, and my partner is able to swim over and clip in with me, and we just swim her in together,’ he said.

Both women were alive when they were pulled from the water. 

But Nair died soon after she was recovered, while Sran was rushed to the hospital where she received emergency treatment until Saturday. 

Nair’s father, Ashok Nair, refuted reports that the two girls were asleep when they were pulled into the ocean by a ‘sneaker wave’

Eight rescue swimmers were deployed on Wednesday to search for the two missing women 

The two friends were relaxing on Bonny Doon Beach in Santa Cruz, California

The two women graduated together from Washington High School in 2023. 

They were due to graduate college in 2027, Nair in legal studies at UC Berkeley and Sran in public health and psychology at San José State University.

Nair hoped to work in law and public service to directly help communities and expand their access to opportunity. 

At school, Sran was a member of the Public Health Peer Ambassadors club which hosts productivity workshops and social events to help public health students. 

Officials at the school said: ‘The entire SJSU community shares in the grief felt by those who loved and cared for her.’

Meanwhile at Berkeley officials said Nair’s death caused ‘immense sadness’ at the school.

‘We wish to extend our condolences to this student’s family and friends,’ spokesman Adam Ratliff told the San Francisco Chronicle. 

Outgoing Associated Students of the University of California (ASUC) President at UC Berkeley, Abigail Verino, also noted on social media that Nair (pictured) once won the superlative of ‘Most likely to be the kindest soul’

The outgoing Associated Students of the University of California (ASUC) President at UC Berkeley, Abigail Verino, also noted on social media that Nair once won the superlative of ‘Most likely to be the kindest soul.’

‘That superlative describes exactly the incredible person she was to every person she crossed paths with,’ Verino posted. ‘Her warmth, love for life and compassion are what she would be forever known for.’

‘The Office of the President remembers and celebrates her vibrant spirit that made the office what it was,’ she added.

An online obituary further described Nair as a ‘cherished sister, granddaughter and a treasured friend to many.’ 

‘In her short but beautiful life, Harshita left an unforgettable mark on everyone fortunate enough to know her,’ it read, saying she radiated, ‘energy, warmth and joy wherever she went.’

‘She had a deep love for adventure and embraced every moment with enthusiasm and courage,’ the obituary continued. ‘Her spirit was contagious, her laughter uplifting and her presence comforting.’

It then went on to say Nair, ‘simply could not bear to see anyone sad.’

‘Harshita always found a way to lift others up, to brighten their day and to make them feel seen and valued.

‘Her kindness, compassion and unwavering positivity touched countless lives,’ the obituary said.

‘Though her time with us was far too short, the love she gave and the joy she shared will continue to inspire and guide us,’ it concluded. 

Panther Beach is known for having a steep surf line and strong currents that combine to create dangerous conditions

Fremont Mayor Raj Salwan also remembered the college students in his own statement posted to Facebook on Tuesday, saying their ‘young lives were filled with promise.’

‘Our Fremont community is heartbroken by this tragic loss,’ he said. ‘My deepest condolences are with the families, friends, classmates and everyone grieving this unimaginable loss.’

The mayor then urged residents to exercise caution at nearby beaches, as the California coast continues to be pounded by strong ocean swells.

Panther Beach in particular is known for having a steep surf line and strong currents that combine to create dangerous conditions.

‘Sneaker waves, strong currents and rising tides can strike without warning,’ Salwan said, reminding residents to ‘never turn your back on the ocean.’ 

In a surprising turn of events, an Argentine television host has resigned after mistakenly announcing the death of Lionel Messi’s father, just two days following Messi’s triumphant performance for the Argentina national team in their opening World Cup match.

Florencia Peña, during a live stream on Luzu TV’s “El Show del Verano” on Thursday, incorrectly reported the passing of Jorge Messi. The blunder quickly garnered attention and concern from viewers.

Peña stated on air, “I hate to be the bearer of bad news, but Messi’s father has just passed away,” as reported by the US Sun. She further speculated, “In the midst of the World Cup, he’s going to have to leave,” assuming the worst without confirmation.

This misinformation prompted a response from the Messi family, who clarified the situation. They confirmed that while Jorge Messi had been dealing with a health issue, he was very much alive, highlighting the need for accuracy and responsibility in reporting.

The Messi family called out the irresponsible reporting, sharing that Jorge Messi had been battling an undisclosed health issue but hadn’t died.

“He is currently under medical supervision, recovering, and progressing favorably within his current condition,” the family said in a statement, according to ESPN.

“Given the versions, rumors, and speculation that have circulated in recent hours, the family wishes to express its deep displeasure at the lack of sensitivity, respect, and scruples with which some people have treated a strictly private and family matter,” the family wrote.

It was not revealed what illness the elder Messi was battling or what his condition is.

The 51-year-old television personality claimed she was given unverified information about Messi’s 68-year-old father and ran with it.

“I have to clarify that this false information was given to me live on air as if it had been checked the show’s production team, and I trusted it,” Peña wrote on her Instagram Story Thursday.

Peña apologized for the on-air blunder and said she was leaving the show on Thursday.

“I apologize to the Messi family for the awful moment I imagine they are going through. I am very ashamed to have been the vehicle for this pain,” she said. “Even so, I take responsibility for being part of the mistake, and that is why I decided to step aside and end my participation in Luzu. I apologize again from the bottom of my heart: I was wrong.”

Conflicting reports claim Peña and the production staff involved in the false reporting were all dismissed from the station.

“Luzu TV deeply regrets what happened on air during the program. Our channel finds the dissemination of sensitive information without proper prior verification unacceptable. For this reason, Luzu TV management has decided to dismiss all those responsible. Florencia Peña will decide to step down,” the station said in a statement shared by founder Nico Occhiato. “We reaffirm our commitment to responsible, respectful and rigorous communication.”

In a recent development from COUNTRY CLUB HILLS, Ill. (WLS), federal charges have been dismissed against three individuals accused of robbery, two of whom were injured during an undercover operation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) targeting gun trafficking.

Prosecutors revealed that newly discovered evidence challenges the initial account presented by ATF and FBI agents, as per court documents reviewed by the ABC7 I-Team.

This incident adds to the ongoing controversies surrounding the federal prosecutor’s office in Chicago.

ABC7 Chicago is now streaming 24/7. Click here to watch

The ATF reported that their operation took place around 5:30 p.m. on June 9, near 189th and Loretto Lane in Country Club Hills. During the operation, an ATF special agent and a task force officer discharged their weapons in response to an attempted armed robbery aimed at undercover agents. Two suspects were struck in the process. The task force officer involved is affiliated with the Chicago Police Department, authorities noted.

The injured suspects were apprehended and subsequently transported to the hospital, where they were reported to be in stable condition. Additionally, a third individual faced charges for allegedly assaulting an officer, as stated by officials.

The USAO asked a judge on Wednesday to dismiss the charges filed last week against three people accused of attempting to buy firearms from undercover ATF agents in Country Club Hills, and later running away, triggering an agent-involved shooting of two people.

On Thursday, Magistrate Judge Keri L. Holleb Hotaling dismissed the charges against the three men without prejudice and, underscoring the seriousness of this latest situation, scheduled a July 2 hearing to discuss whether sanctions should be imposed against the government.

Judge Hotaling ordered officials from both the FBI, and the USAO Front Office, which could include USAO Andrew Boutros himself, to be present at the July hearing.

In a motion filed with the court on Wednesday, federal prosecutors said the USAO “Front Office” obtained video from the ATF of the shooting incident, and that aspects of the shooting “appear inconsistent with the description of the shooting.” That description of events came from an FBI agent investigating the incident, and ATF agents involved with the operation, according to the original criminal complaint filed.

In addition to the new video evidence, prosecutors told the judge an ATF special agent sent an email to the prosecution team this week describing the events, and that it too was “potentially inconsistent” with what prosecutors were originally told.

Court records show new evidence obtained by prosecutors contradicts the account of events given by ATF and FBI agents.Chicago police shot 18-year-old Demond Edwards on June 9 during the altercation. His lawyer says video taken by a bystander shows Edwards was unarmed, and wearing different clothing compared to descriptions of him at the time by an ATF agent involved in the incident.On Thursday, charges against Edwards were dropped after a request by the Northern District of Illinois’ U.S. Attorney’s Office.

Late Thursday night, Edwards attorney filed suit against the government saying nothing justified the shooting of his client, who is now paralyzed, and the ATF agent whose testimony led to charges needs to be investigated.

However, the U.S. Attorney’s Office for the Northern District of Illinois shared a statement with ABC7 Thursday evening, saying the situation is still developing.

“Late last week the government filed a criminal complaint against multiple individuals arising out of an attempted armed robbery and assault on federal officers occurring on June 9, 2026,” the statement read. “The facts are fluid and developing, and multiple investigations are ongoing and more facts will be forthcoming. Our decision to dismiss the complaint today should not be read at all as a retreat of this case or the events giving rise to charges.”

The judge in the case has scheduled a hearing regarding possible sanctions against the government, and this is just the latest prosecution from that office to fall apart.

It is an unprecedented situation, according to ABC7 Chief Legal Analyst Gil Soffer, that gives other defense lawyers cause to think something is very wrong with the operation of the US Attorney’s Office

“It is giving them a lifeline sometimes sometimes more than that an opportunity to get charges dismiss that otherwise would’ve gone through trial and potentially resulted in convictions that has already happened an and it could happen again and we don’t know how many more cases we’re going to we’re going to be infected by the same problem,” Soffer said.

The ATF said Illinois State Police, the FBI and Chicago Police Department assisted in the initial investigation.

COPA is also investigating because a Chicago police officer was involved in the shooting.

During the inauguration of Barack Obama’s presidential library in Chicago, Joe Biden was observed mumbling to himself while being guided across the stage.

At 83, the former president exhibited signs of confusion at several moments throughout Thursday’s event.

Footage captured Biden staring intently into the crowd as Obama walked by.

Following the conclusion of much of the ceremony, Biden lingered near the podium. Cameras recorded him waving, scanning the audience, and remaining on stage even after Obama and other key figures had departed.

Left alone on stage, Biden seemed to inquire, “Where are the children?” and “Where’s my granddaughter?” according to lip-reader Nicola Hickling, as reported by the Daily Mail.

The awkward scenes quickly became some of the most talked-about moments from the star-studded event, which brought together former presidents Bill Clinton, George W Bush and Biden for the dedication of the Obama Presidential Center.

Video also showed Biden appearing to seek direction as guests and performers moved around the stage, before he was eventually joined by his wife former First Lady Jill Biden.

Biden’s appearance marked one of his highest-profile public outings in recent months as he continues to battle prostate cancer that has spread to his bones.

Joe Biden appeared confused and looking for direction after lingering on stage following the dedication ceremony at Barack Obama’s presidential center in Chicago on Thursday

Video showed Biden standing near the podium as other dignitaries, including Obama, began leaving the stage

According to a lip-reader, Biden appeared to ask: ‘Where are the children?’ while looking out into the crowd

Hickling also analyzed an exchange between Obama and Biden as the pair stood together on stage.

According to her interpretation, Obama told Biden: ‘As you know, I got a real deal. I can’t fail, I told him to go,’ while gesturing over his shoulder before adding: ‘Come on, the camera’s on us.’

Hickling claimed Biden replied: ‘Thank you for the lovely welcome.’

The event itself was intended as a celebration of Obama’s presidential legacy and the official opening of the sprawling campus on Chicago’s South Side.

Obama was joined by Clinton, Bush, Biden, former Vice President Kamala Harris and a guest list packed with celebrities, musicians and political figures.

During his remarks, Obama paid tribute to Biden and their years together in the White House.

Biden is directed off stage by his wife former First Lady Jill Biden

Biden attended the event alongside former presidents Barack Obama, Bill Clinton and George W Bush

Biden’s appeared tired at times during the ceremony. His appearance comes as he continues treatment for prostate cancer that has spread to his bones

Biden looked to be resting as he sat in his chair during the event on Thursday

Biden appeared briefly uncertain about where to go as the ceremony wound down and other dignitaries exited the stage

Footage captured Biden scanning the crowd before making his way toward the microphone

Former President Barack Obama, right, shares a laugh with former first lady Michelle Obama, left, on stage during the dedication ceremony for the Obama Presidential Center in Chicago

‘Thank you for your steadfast partnership for eight years,’ Obama told the crowd.

‘Joe, we started as running mates, and ended as family. And we would not be here without you, and we are grateful.’

The former president’s comments drew applause from attendees gathered for the ceremony, which also featured performances from Bruce Springsteen, Stevie Wonder, Bono, John Legend and Christina Aguilera.

The appearance inevitably revived discussion about the closing chapter of Biden’s presidency, during which critics repeatedly questioned whether the then octogenarian should have stepped aside sooner ahead of the 2024 election.

Biden, who left office as the oldest president in American history, has largely remained out of the spotlight since departing the White House.