9th Circuit limits ICE restrictions in California

Federal Court of Appeals overturned one of California’s major laws challenging the Trump administration’s immigration crackdown, and the decision does not bode well for future measures.

The Ninth Circuit Court of Appeals on Wednesday upheld an injunction barring the state from requiring federal immigration agents to easily identify themselves, a law Democrats passed last year to rein in undercover federal agents who carried out arrests across California.

The law was pre-drawn to come under scrutiny from federal judges, and President Donald Trump’s administration blocked it almost immediately after Gov. Gavin Newsom signed it. An 1890 Supreme Court case says a state can’t prosecute federal law enforcement officers acting in the line of duty, CalMatters’ Nigel Duara reports.

And the law collided head-on with the Constitution’s Supremacy Clause, which states that states cannot regulate the activities of the federal government.

• Mark J. Bennett9th Circuit Judge, in ruling: “If a state law directly regulates the conduct of the United States, it is invalid regardless of whether the regulated activities are essential to federal functions or operations and regardless of the extent to which the state law interferes with federal functions or operations.”

Democrats are pushing more bills this year targeting the administration’s immigration agents, including proposals that would to ban them from work in California law enforcement and a measure that would make it easier for people to sue federal agents for violations of civil rights.

But the court’s ruling suggests trouble lies ahead for those proposals, as they also seek to supersede state law over federal policy. It was a potential some lawmakers raised during a committee hearing Tuesday as they debated a bill that would disqualify immigration agents from being appointed as California police.

• Sen. Dave CorteseSan Jose Democrat: “I’m not sure there aren’t some constitutional issues. … I want to admit that down the line I wouldn’t be surprised if there are some issues that are presented legally at some point.”

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Anti-tax proposal is headed for the November election — unless California politicians strike a deal with his supporters to keep him out of the voters.

As CalMatters’ Ben Christopher explains, an initiative by the low-tax advocacy group Howard Jarvis Taxpayers Association would cap real estate sales taxes and make it harder to pass local tax measures proposed by voters. If passed, the measure would have severe consequences for some cities whose budgets rely heavily on taxes from these real estate sales.

But some Democrats in the Legislature hope there is one important bargaining chip that could convince supporters of the measure to pull it from the ballot: Los Angeles’ 2022 tax on high-value real estate sales. Over the past three years, Los Angeles’ “mansion tax” has raised more than $1 billion. But real estate interests say that slows down housing construction, and they want the tax to include more rebates.

State lawmakers may be willing to repeal parts of Los Angeles’ tax if it means Howard Jarvis and developers withdraw their initiative.

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Spurred by an investigation by Byrhonda Lyons of CalMatters, a Republican-backed bill that would make it easier for car owners to recoup the proceeds from the sale of their old cars is working its way through the legislature.

Warehouses, towing companies, and auto repair shops can auction off vehicles when owners don’t pay and repossess their cars. For decades, the DMV received millions of dollars from these lien sales without telling the owners. The bill would require the DMV to notify owners within 14 days to receive winnings, notification of the amount and how to claim the money.

The bill’s analysis cites Byrhonda’s 2025 report, which “raises concerns that the process for recovering excess funds after a lien sale is opaque.” From 2016 to the end of 2024, the DMV collected more than $8 million from nearly 5,300 cars auctioned off without having to notify owners. Shortly after the DMV story was published copy tool CalMatters to help people claim their money.

The bill is expected to be heard Monday in the Senate Appropriations Committee.

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