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Petersburg casino announces opening date for temporary facility

The temporary in will open Jan. 22, 2026, pending regulatory approval.

The developers of the permanent $1.4 billion mixed-use development — Baltimore-based and Virginia Beach’s Enterprise — on Monday announced the temporary facility’s opening date.

“After years of planning, we’re thrilled to see this vision become reality,” Cordish Group President Rob Norton said in a statement. “When Live! Casino Virginia opens its doors, Central Virginia will experience something truly exceptional — the region’s first full-scale casino featuring the electrifying energy of Vegas-style slots, live-action table games and the signature excitement only Live! can deliver.”

The temporary casino will be on the 100-acre site of the future Live! Casino & Hotel Virginia. Construction for the permanent casino at the site off I-95 at Exit 48B began in March, and its expected opening is 2027.

The project leads expect the temporary facility to create 500 jobs, including about 100 table game dealer positions, while they anticipate the full casino resort will create 1,400 jobs.

The Live! Casino Virginia will have 75,000 square feet of gaming space with more than 900 slot machines and more than 30 table games. will also have a bar and quick-service restaurant, as well as more than 1,000 parking spaces.

“In the past, travelers have simply driven past this area for other points of interest. From Jan. 22 onwards, visitors will make the choice to come here as a prime destination,” Bruce Smith said in a statement.

The full 445,000-square-foot Live! Casino & Hotel Virginia is set to include 1,600 slot machines, more than 60 table games, more than 70,000 square feet of meeting, convention and entertainment space, a 200-room hotel with 25 suites, nearly 20 food and beverage options and a sportsbook.

More than 80% of Petersburg voters approved a local referendum greenlighting the casino in November 2024. Developers initially expected the temporary site to open by the end of 2025, but the opening was delayed because the casino wouldn’t have received regulatory approval in time.

The Petersburg casino is on track to be one of five  in Virginia.

So far, Virginia has three operating casinos: Rivers Casino Portsmouth, the state’s first permanent casino; the Hard Rock Bristol Casino, which opened in November 2024; and the Caesars Virginia casino in Danville, which opened in December 2024.

Meanwhile, the Pamunkey Indian Tribe and Boyd Gaming started construction on the long-delayed Norfolk casino in February.

Performance Food Group and US Foods terminate merger talks

Goochland County-based company and have scrapped discussions of a .

announced Monday that and US Foods have mutually agreed to terminate the previously announced information-sharing process and that the companies will no longer pursue a merger.

“Following a comprehensive evaluation of regulatory considerations and synergies related to a potential business combination with US Foods, with the assistance of our independent financial and legal advisors, we have decided to terminate discussions,” George Holm, chairman and CEO of PFG, said in a statement. “Our board of directors is unanimous in its belief that the clearest and best path to long-term stockholder values is executing our standalone strategic plan, leveraging our diverse business segments to drive consistent revenue and profit growth.”

Neither company immediately returned requests for comment Monday.

Had the two companies merged, it would have created the largest United States food service distributor, with roughly $100 billion in combined revenue.

In September, PFG said it entered “a clean team agreement” with US Foods, allowing the companies to share confidential information to determine potential synergies and whether the merger would face regulatory challenges.

PFG reported earlier this month that net sales for the first quarter of fiscal 2026 grew 10.8% year-over-year to $17.1 billion. The company expects net sales for the current quarter to be in the range of approximately $16.4 billion to $16.7 billion, and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarter to range from roughly $450 million to $470 million.

“The strength of our recently reported fiscal first quarter results and continued momentum supports the confidence in our ability to drive value for stockholders independently,” said Holm.

PFG is No. 80 on the 2025 list and No. 272 on the Fortune Global 500. The company, which employs about 43,000 people, went public in 2015. PFG delivers food products to more than 300,000 locations in the United States and Canada, including restaurants, businesses, schools, theaters and .

Headquartered in Illinois, US Foods Holding is ranked No. 122 on the Fortune 500 rankings for 2025 and No. 413 on the Fortune Global 500. It reported $37.8 billion in revenues in the last fiscal year and employs 30,000 people.

Stocks rise as Wall Street rebounds from sharp swings

Summary

  • rose 1% after a week of sharp market volatility
  • Fed official John Williams signaled possible December rate cut
  • Big Tech, AI-linked stocks like drove major swings
  • and homebuilders gained amid hopes for lower rates

NEW YORK (AP) — More swings hit Wall Street on Friday, except the U.S. stock market finished higher this time.

After bobbing up and down through the morning, the S&P 500 took off and rallied nearly 2% before finishing with a gain of 1%. The Dow Jones Industrial Average climbed 493 points, or 1.1%, and the Nasdaq composite rose 0.9%.

was a fitting finish for a week that left the S&P 500 just 4.2% below its record but also forced investors to stomach the sharpest hour-to-hour swings since a sell-off in April. The jarring moves are testing investors following a monthslong and remarkably smooth surge for stocks, and they come down to two basic questions, neither of which has been answered yet.

Have prices for Nvidia, and other stars of Wall Street shot too high? And is the done with its cuts to interest rates, which would boost the economy and prices for investments?

On the second question, financial markets found some assurance from a speech by the president of the Federal Reserve Bank of New York. Markets perked up immediately after John Williams told a conference in Chile that he sees “room for a further adjustment” to interest rates.

That could signal he’ll vote for another cut to rates in December. What the Fed does is critical for Wall Street because stock prices ran to records through last month in part because of expectations for a series of reductions.

Other Fed officials, though, have argued against a December cut given how high  remains. The uncertainty created by such sharp disagreement has triggered dramatic moves back and forth for markets.

The swings hit a crescendo on Thursday, when U.S. stocks initially surged after Nvidia seemed to tamp down worries about a potential bubble in artificial-intelligence . But the market quickly dropped to a sharp loss in its biggest one-day reversal since April, when President Donald Trump shocked markets with his “Liberation Day” .

Despite the strong profit report from Nvidia, whose chips are powering the move into AI, worries are still hanging around about the longer term. Will all those AI chips that Amazon, Meta Platforms and other companies are gobbling up actually yield profits and productivity as big as proponents are envisioning? If not, some investors fear, all the investment won’t be worth it.

AI-linked stocks continued to swing on Friday, helping to drag the rest of the market behind them. Nvidia went from an initial gain to a drop of 4.3% and then swung back and forth before finishing with a loss of 1%, for example. Amazon went from an early loss to a gain of 1.6%.

Bitcoin, meanwhile, briefly plunged below $81,000 before pulling back toward $85,000. That’s down from nearly $125,000 last month and brought it back to where it was in April, when markets were shaking because of Trump’s tariffs.

The vast majority of stocks on Wall Street rose despite such swings, with nearly 90% of stocks in the S&P 500 climbing. Their movements often get drowned out by Nvidia and other Big Tech stocks, whose movements have much more effect on the S&P 500 because of their immense sizes.

“When the largest companies drive most of the losses, the market can look weaker than it really is,” said Brian Jacobsen, chief economist at Annex Wealth Management.

Several retailers led the way. Gap jumped 8.2% after reporting a stronger profit for the latest quarter than analysts expected. CEO Richard Dickson said it saw strong sales trends at each of its Old Navy, Gap and Banana Republic brands.

Ross Stores rallied 8.4% after it likewise delivered a better profit than expected. CEO Jim Conroy said it saw broad-based growth during the quarter and raised the company’s forecast for an important measure of sales during the holiday season.

Homebuilders were also strong on hopes that lower interest rates could make mortgages cheaper and give a kick to the housing market. D.R. Horton jumped 6.8%, Lennar rose 5.9% and PulteGroup gained 5.2%.

All told, the S&P 500 rose 64.23 points to 6,602.99. The Dow Jones Industrial Average gained 493.15 to 46,245.41, and the Nasdaq composite climbed 195.03 to 22,273.08.

In the bond market, Treasury yields eased on hopes for cuts from the Fed. Traders are now betting on a nearly 72% probability of a December cut, up sharply from 39% a day before, according to data from CME Group. That helped send the yield on the 10-year Treasury to 4.06% from 4.10% late Thursday.

In stock markets abroad, indexes were mixed in Europe after tumbling in Asia following Wall Street’s stunning reversal on Thursday.

Japan’s fell 2.4%, and South Korea’s Kospi dropped 3.8% for two of the larger losses.

Henrico-based ASGN rebranding to Everforth

Henrico County-based Fortune 1000 and firm announced Friday it will rebrand itself in the first half of 2026 as , the parent business of ASGN’s six current brands.

The six brands — focusing on AI and data, and infrastructure, digital engineering, customer experience, cybersecurity and enterprise platforms — are Apex Systems, Creative Circle, CyberCoders, ECS, GlideFast Consulting and TopBloc.

“We are excited to introduce Everforth to the market,” ASGN CEO Ted Hanson said in a statement. “The transition to the Everforth brand reflects our commitment to continuous progress and sets the stage for even greater impact. With a unified identity, we can sharpen our focus on what matters most, supporting our clients and their organizations as they navigate change and seize new opportunities.”

ASGN’s board of directors also authorized a $1 billion share buyback plan, the company said Friday.

In fiscal 2024, ASGN earned $4.1 billion in revenue, down from $4.45 billion the previous year. In March, a joint venture between ECS — ASGN’s federal government segment — and Herndon-based IT firm Yakshna Solutions won a spot on a $20 billion U.S. Department of Treasury blanket purchase agreement for cybersecurity enhancements. The same month, ASGN acquired Chicago-based TopBloc, a Workday services provider, for $340 million.

Earlier this week, ASGN announced the launch of AI Factory, a framework that helps businesses scale into their entire procedures from idea to production.

Richmond seeks developers for bus station, mixed-use project

SUMMARY:

  • issued a request seeking developers for a mixed-use downtown project to include a bus transfer hub
  • The 3-acre site is the location of the former Public Safety Building
  • Plans include a 10-bay terminal, housing and retail

Richmond is seeking a development team to transform the former Public Safety Building site into a mixed-use complex built around a new downtown bus transfer hub.

The Greater Richmond Transit Company () and the Richmond Authority issued a request Thursday seeking interested developers for the public-private venture.

The selected site is also within the , a downtown area city officials have targeted for . The project is expected to include a 10-bay bus terminal and has the capacity to support more than 500 residential units, 30,000 square feet of amenity space and 28,000 square feet of ground-floor retail space, according to an analysis the city provided in its request to developers.

Bordered by Ninth and Leigh streets, the 3-acre site at 500 N. 10th St. is a convergence point for GRTC’s East-West routes and the transit system’s planned North-South Pulse Bus Rapid Transit (BRT) routes. Currently, GRTC operates a temporary transfer station off 9th Street, a short walk from the proposed site.

“This location offers unmatched multimodal connections, with convenient transfers via to intercity passenger rail and coach bus connections at the nearby Main Street Station as well as access to the broader region via Interstate 95,” the city’s request states.

“By strengthening our transit network and activating a critical downtown site with new housing, retail and public space, we are setting the stage for a more connected, innovative, and people-centered Richmond,” Mayor Danny Avula said in a news release.

The cost of the downtown transfer hub portion of the project, which will be funded by public sources, is estimated to be $47.3 million, according to the city. So far, the project has received a $6.5 million grant from the Central Virginia Transportation Authority and a $3 million grant from the Virginia Department of Rail and .

“Additional financial tools will be available to support the mixed-use development,” a city press release states.

Responses from developers are due Jan. 30. The project site is currently owned by the city, but ownership is being transferred to the EDA.

The lot where the city’s Public Safety Building previously stood has received considerable attention over the years. VCU Health announced plans in 2021 to build a $325 million medical office tower and multiuse project there. News broke in 2023, however, that VCU Health had backed out of the plan after learning would cost more to build there than initially anticipated.

The city demolished the Public Safety Building, which was built in 1954, last year.

Virginia housing market showed momentum in October

Virginia’s housing market picked up in October, with buyers taking advantage of lower mortgage rates and a larger selection of homes, reported this week.

According to an October statewide report released by the trade association, agents sold 9,006 homes in Virginia last month — up 2.5% from September’s 8,783 and up 3.1% from October 2024’s 8,732.

The report said that, compared to a year ago, the greater region and parts of south Central Virginia saw an increase in sales. However, sales slowed in parts of the and regions.

“Virginia’s housing market is showing strong momentum as we continue into the fall,” Virginia Realtors President Lorraine Arora said in a statement. “With more homes coming onto the market and sales continuing to grow, Virginians are finding more opportunities to buy and sell in communities across the commonwealth.”

There were 8,450 pending home sales in October, 396 more than October 2024, a 4.9% increase. However, pending sales were down from September’s 8,662. On average, homes took almost three weeks to sell in Virginia last month, with a median of 19 days on market across the state — increasing from 15 days last October.

Year-over-year changes in county and city home sales in October 2025. Image courtesy Virginia Realtors

There were 25,196 active listings on the market at the end of October across Virginia, up from 24,759 active listings in September and up from 20,042 listings last year — a 25.7% year-over-year increase in inventory levels.

The statewide median sales price in October was $430,000, a 3.6% increase from $415,000 at the same time last year. Even though inventory has increased, Virginia Realtors said home prices kept rising in more than half of Virginia’s local markets, demonstrating continued demand for housing.

The association says that higher sales and rising home prices led to the state’s sold-dollar volume reaching $4.9 billion — a significant 8.1% increase (about $400 million) from last year.

“Mortgage rates remaining in the low 6% range have encouraged potential buyers and allowed for renewed motivation among some sellers,” Virginia Realtors Chief Economist Ryan Price said in a statement. “While the recent government shutdown has restricted insight into some economic trends, rising prices and a cooling labor market continue to pose challenges.”

Based in , Virginia Realtors represents about 34,000 Realtors and is the state’s largest trade association.

Japan OKs $135 billion stimulus package to help revive its sluggish economy


Summary:

  • Japan OKs ¥21.3T ($135B) stimulus to counter ,
  • Measures include , tax cuts and child cash handouts
  • Plan aims to revive economy after exports fall, inflation hits 3%
  • Minority Takaichi government must pass a supplementary budget

TOKYO (AP) — Japan’s Cabinet approved a 21.3 trillion yen ($135.4 billion) Friday to help spur the economy through expansionary and to relieve the impact of higher prices.

After taking office last month, Prime Minister promised to boost government spending despite concerns that such moves will delay progress on trimming Japan’s national debt, which is about triple the size of its economy.

Takaichi told reporters that the package aims to quickly deliver on her promises.

“Through wise spending, we will change worries into hope and achieve a strong economy,” she said.

“What we should do now is to strengthen the national power through expansionary spending, through wise spending, and not to cause harm through excessively contractionary policies,” she said.

The spending package far exceeds those of the pre-COVID-19 pandemic years and is also meant partly to blunt the impact of higher U.S. tariffs on Japanese exports to America under President Donald Trump.

Exports to the U.S. fell in October for the seventh straight month, the government said Friday, though shipments to the rest of the world rose 3.7%, thanks partly to higher exports to the rest of Asia.

In recent days, investors have sold off Japanese government bonds, pushing yields higher, while the yen has fallen to nearly its lowest level this year.

Share prices have also taken a hit from renewed friction with China after Takaichi made comments that angered Beijing, provoking retaliatory moves including an advisory warning Chinese tourists and students against going to Japan.

The benchmark index fell 2.4% on Friday, mainly due to heavy selling of shares.

The lavish spending package approved Friday includes subsidies for energy costs, a cut in the gasoline tax and other measures to help consumers struggling with the rising cost of living. The government reported Friday that core inflation excluding volatile food costs was 3% in October, higher than the central bank’s target of around 2%.

Specific subsidies include one-time cash handouts of 20,000 yen (about $130) per child, which would require about 400 billion yen ($2.6 billion) in government funding and issuing rice vouchers or other coupons worth 3,000 yen (about $20) per person, to be distributed by local authorities.

Takaichi’s government must compile a supplementary budget and gain approval by the parliament by the end of this year to fund the package. That’s a major challenge for her ruling coalition, which lacks a majority in both the Upper and Lower houses of the Diet.

Takaichi succeeded former Prime Minister Shigeru Ishiba, who was virtually ousted by his rivals in the ruling party after losing major elections due to voter dissatisfaction over his minority government’s slow response to soaring prices and lagging wages.

As Japan’s first female prime minister, Takaichi has so far enjoyed high levels of public support largely because of expectations she might shake up Japan’s gerontocratic politics. But since she has a minority government, she needs cooperation with opposition parties to get her supplementary budget and spending package passed.

Opposition lawmakers and experts have questioned whether the package will be effective in attaining its aims. One of which is to slightly lower consumer prices by cutting energy costs. Any impact on inflation is expected to be transient since increased demand from other stimulus would tend to push prices higher.

The package also is meant to raise Japan’s gross domestic product by 24 trillion yen ($155 billion), or an annualized rate of 1.4%, according to the Cabinet Office.

Japan’s economy, the world’s fourth largest, contracted at a 1.8% annual pace in July-September.

OpenAI and Taiwan’s Foxconn to partner in AI hardware design and manufacturing in the US


Summary:

  • OpenAI and announce U.S. partnership to co-develop AI data center hardware
  • Foxconn to build cabling, networking and power systems in U.S. factories
  • Collaboration part of OpenAI’s $1.4 trillion expansion
  • Deal aims to bolster U.S. leadership and keep AI innovation local

TAIPEI, (AP) — OpenAI and Taiwan electronics giant Foxconn have agreed to a partnership to design and manufacture key equipment for in the U.S. as part of ambitious plans to fortify American AI infrastructure.

Foxconn, which makes AI servers for and assembles Apple products including the iPhone, will be co-designing and developing AI data center racks with OpenAI under the agreement, the companies said in separate statements on Thursday and Friday.

The products Foxconn will manufacture in its U.S. facilities include cabling, networking and power systems for AI data centers, the companies said. OpenAI will have “early access” to evaluate and potentially to purchase them.

Foxconn has factories in the U.S., including in Wisconsin, Ohio and Texas. The initial agreement does not include financial obligations or purchase commitments, the statements said.

The Taiwan contract manufacturer, formally known as Hon Hai Precision Industry Co., has been moving to diversify its business, developing electric vehicles and acquiring other electronics companies to build out its product offerings.

A sleek Model A EV made by the group’s automaking affiliate Foxtron was on display at Friday’s event.

“This year, Model A. ‘A’,’ for affordable,” said Jun Seki, chief strategy officer for Foxconn’s EV business.

The tie-up with OpenAI can also help Taiwan, a self-governed island claimed by China, to build up its own computing resources, said Alexis Bjorlin, a Nvidia vice president.

“This allows Taiwan’s domain knowledge and key data to remain local and ensure data security,” she said.

“This partnership is a step toward ensuring the core technologies of the AI era are built here,” , CEO of San Francisco-based OpenAI, said in the statement. “We believe this work will strengthen U.S. leadership and help ensure the benefits of AI are widely shared.”

OpenAI has committed $1.4 trillion to building AI infrastructure. recently entered into multi-billion partnerships with Nvidia and AMD to expand the extensive computing power needed to support its AI models and services. It is also partnering with US chipmaker Broadcom in designing and making its own AI chips.

But its massive spending plans have worried investors, raising questions over its ability to recoup its investments and remain profitable. Altman said this month that OpenAI, a startup founded in 2015 and maker of ChatGPT, is expected to reach more than $20 billion in annualized revenue this year, growing to “hundreds of billions by 2030.”

Foxconn’s Taiwan-listed share price has risen 25% so far this year, along with the surge in prices for many tech companies benefiting from the craze for AI.

The Taiwan company’s net profit in the July-September quarter rose 17% from a year earlier to just over 57.6 billion new Taiwan dollars ($1.8 billion), with revenue from its and networking business, including AI servers, contributing the most business.

“We believe the importance of the AI industry is increasing significantly,” Liu said during Foxconn’s earnings call this month.

“I am very optimistic about the development of AI next year, and expect our cooperation with major clients and partners to become even closer,” said Liu.

General Dynamics subsidiary wins $2.3B Columbia-class subs award

General Dynamics Electric Boat, the Connecticut subsidiary of -based defense contractor , has been awarded a $2.28 billion contract modification from the for advance procurement and construction of Columbia-class fleet ballistic missile submarine hulls.

The (currently being rebranded the Department of War by the ) announced this week that the contract, awarded on Nov. 12, will require the General Dynamics subsidiary to work on SSBN hulls 828 through 832.

The company will perform 15% of the work in Newport News, 70% of the work in Groton, Connecticut, and the remaining 15% in Quonset Point, Rhode Island. Work is expected to wrap up by December 2031.

About $2.23 billion will come from the National Sea-Based Deterrence Fund, while $54.22 million will come from another account used for investments in equipment and materials. The Naval Sea Systems Command is the contracting activity.

The Navy first awarded the contract in 2017, $5 billion to complete design work for the new ballistic-missile submarines and to develop components and technologies as well as missile tube module and reactor compartment bulkhead prototyping and manufacturing efforts.

The contract has been expanded several times since then. In 2020, the Navy added a $9.7 billion modification to fund construction and testing of the two Columbia-class submarines, SSBN 826 and SSBN 827. Another modification in December 2022 provided $5.13 billion for advance procurement and early construction of critical components and materials needed for five additional Columbia-class boats.

employs more than 24,000 people. General Dynamics employs more than 110,000 people worldwide and generated $47.7 billion in 2024 revenue.

Trump administration unveils new offshore drilling plan

Summary

  • proposes off , , and
  • Plan includes six California lease sales and over 20 in Alaska through 2030
  • Critics warn of environmental risks, oil spills, and harm to coastal economies
  • Administration emphasizes boosting U.S. energy production and jobs

WASHINGTON (AP) — The Trump administration announced on Thursday new oil drilling off the California and Florida coasts for the first time in decades, advancing a project that critics say could harm coastal communities and ecosystems, as President Donald Trump seeks to expand U.S. oil production.

The has been seeking access to new offshore areas, including Southern California and off the coast of Florida, as a way to boost U.S. energy security and jobs. The federal government has not allowed drilling in federal waters in the eastern Gulf of Mexico, which includes offshore Florida and part of offshore Alabama, since 1995, because of concerns about oil spills. California has some offshore oil rigs, but there has been no new leasing in federal waters since the mid-1980s.

Since taking office for a second time in January, Trump has systematically reversed former President Joe Biden’s focus on slowing climate change to pursue what the Republican calls U.S. “energy dominance” in the global market. Trump, who recently called climate change “the greatest con job ever perpetrated on the world,” created a National Energy Dominance Council and directed to move quickly to drive up already record-high U.S. energy production, particularly fossil fuels such as oil, coal and natural gas.

Meanwhile, Trump’s administration has blocked renewable energy sources such as offshore wind and canceled billions of dollars in grants that supported hundreds of clean energy projects across the country.

Even before it was released, the offshore drilling plan met strong opposition from California Gov. Gavin Newsom, a Democrat who is eyeing a 2028 presidential run and has emerged as a leading Trump critic. Newsom pronounced the idea “dead on arrival” in a social media post. The proposal also is likely to draw bipartisan opposition in Florida. Tourism and access to clean beaches are key parts of the economy in both states.

Plans to allow drilling off California, Alaska and Florida’s coast

The administration’s plan proposes six offshore lease sales between 2027 and 2030 in areas along the California coast.

It also calls for new drilling off the coast of Florida in areas at least 100 miles from that state’s shore. The area targeted for leasing is adjacent to an area in the Central Gulf of Mexico that already contains thousands of wells and hundreds of drilling platforms.

The five-year plan also would compel more than 20 lease sales off the coast of Alaska, including a newly designated area known as the High Arctic, more than 200 miles offshore in the Arctic Ocean.

Interior Secretary Doug Burgum said in announcing the sales that it would take years for the oil from those parcels to get to market.

“By moving forward with the development of a robust, forward-thinking leasing plan, we are ensuring that America’s offshore industry stays strong, our workers stay employed, and our nation remains energy dominant for decades to come,” Burgum said in a statement.

The American Petroleum Institute said in response that the announced plan was a “historic step” toward unleashing vast offshore resources. Industry groups have pointed to California’s history as an oil-producing state and say it already has infrastructure to support more production.

Opposition from California and Florida

Sen. Rick Scott, a Florida Republican and Trump ally, helped persuade Trump officials to drop a similar offshore plan in 2018 when he was governor. Last week, Scott and fellow Florida Republican Sen. Ashley Moody co-sponsored a bill to maintain a moratorium on offshore drilling in the state that Trump signed in his first term.

“As Floridians, we know how vital our beautiful beaches and coastal waters are to our state’s economy, environment and way of life,” Scott said in a statement. “I will always work to keep Florida’s shores pristine and protect our natural treasures for generations to come.”

A Newsom spokesman said Trump officials had not formally shared the plan, but said “expensive and riskier offshore drilling would put our communities at risk and undermine the economic stability of our coastal economies.”

California has been a leader in restricting offshore oil drilling since the infamous 1969 Santa Barbara spill that helped spark the modern environmental movement. While there have been no new federal leases offered since the mid-1980s, drilling from existing platforms continues.

Newsom expressed support for greater offshore controls after a 2021 spill off Huntington Beach and has backed a congressional effort to ban new offshore drilling on the West Coast.

A Texas-based company, with support from the Trump administration, is seeking to restart production in waters off Santa Barbara damaged by a 2015 oil spill. The administration has hailed the plan by Houston-based Sable Offshore Corp. as the kind of project Trump wants to increase U.S. energy production as the federal government removes regulatory barriers.

Trump signed an executive order on the first day of his second term reversing Biden’s ban on future offshore oil drilling on the East and West coasts. A federal court later struck down Biden’s order to withdraw 625 million acres of federal waters from oil development.

Environmental and economic concerns over oil spills

Democratic lawmakers, including California Sens. Alex Padilla and Rep. Jared Huffman, the top Democrat on the House Natural Resources Committee, warned that opening vast coastlines to new offshore drilling would hurt coastal economies, jeopardize national security, ravage coastal ecosystems, and put the health and safety of millions of people at risk.

“With this draft plan, Donald Trump and his Administration are trying to destroy one of the most valuable, most protected coastlines in the world and hand it over to the fossil fuel industry,” Padilla and Huffman said in a joint statement.

One disastrous oil spill can cost taxpayers billions in lost revenue, cleanup costs and ecosystem restoration, they said.

Joseph Gordon, campaign director for the environmental group Oceana, called the Trump administration’s latest plan “an oil spill nightmare.”

Coastal communities “depend on healthy oceans for economic security and their cherished way of life,” he said. “There’s too much at stake to risk more horrific oil spills that will haunt our coastlines for generations to come.”