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Climate executive warns California ‘functionally bankrupt,’ $1T shortfall could shake nation
California is “functionally bankrupt,” climate entrepreneur David Friedberg said in a recent interview with “Sourcery,” pointing to pension liabilities, legal constraints, and government spending as drivers of a potential long-term fiscal crisis.
Friedberg was asked to share an under-discussed “hot take” on politics and policy. He framed California’s financial outlook as a largely overlooked issue with implications that could extend beyond the state.
“People don’t realize how screwed California is, and I worry that if California falls, so does the union,” Friedberg said.
He argued that the scale of California’s fiscal exposure is tied directly to its public pension system, which guarantees retirement benefits to government employees and retirees. According to Friedburg, the gap between what has been contributed and what is owed has grown significantly over time.
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He argued that the scale of California’s fiscal exposure is tied directly to its public pension system, which guarantees retirement benefits to government employees and retirees. According to Friedburg, the gap between what has been contributed and what is owed has grown significantly over time.
“The amount that they’re owed back out is somewhere between $250 billion to $1 trillion dollars more than has been paid in,” Friedberg said.
Friedburg contrasted California’s position with that of the federal government, emphasizing that states operate under stricter fiscal constraints and cannot rely on monetary policy tools to offset deficits or obligations.
“If it was the federal government, it would be like, OK, we’ll just print more money,” he said. “California doesn’t have the ability to print money, so California has to pay this out.”
He also pointed to legal precedents that, in his view, limit the state’s flexibility in addressing pension liabilities, even for current employees whose benefits have already been promised.
“There was a Supreme Court case in California that said that once an employee has been offered retirement benefits… you can never restructure their retirement benefits,” Friedberg said. “It has to stay forever.”
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In addition to benefit protections, Friedberg said California lacks a legal mechanism to declare bankruptcy, which further restricts options typically available to entities facing insolvency.
“The state cannot declare bankruptcy. There’s no way for the state to functionally declare bankruptcy. There’s no law to allow it,” he said. “No state has ever declared bankruptcy.”
Friedburg said that under current financial structures, pension obligations must be paid before other liabilities, including debt owed to investors who finance state operations.
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“The retirement benefits sit senior to the bonds in California,” Friedberg said. “So you have to pay out the retirement benefits before you pay out all the bondholders.”
Friedburg described the situation as a looming “fiscal cliff,” arguing that the scale and structure of the problem leave limited paths forward without broader economic or political consequences.
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“I asked… where did the $14 billion go that went into that high-speed rail project? There was… no rail,” he said. “Whose pocket is that money in?”
“Where the hell did the money go?… You can follow dollars. Where did they go? Who has all that money?” Friedberg asked.
He said California needs a structural changes to address the issue.
“California’s functional bankruptcy is a major risk to the country, and I think we need to figure out what we can change to fix it,” Friedberg said.
Newsom’s office did not immediately respond to Fox News Digital for comment.
At least three people were killed and two others injured Thursday when a helicopter crashed into the ocean off the coast of Hawaii.
According to the Kauaʻi Police Department, dispatchers received a call at approximately 3:45 p.m. that a helicopter had crashed into the ocean near Kalalau Beach.
The helicopter was operated by Airborne Aviation, with one pilot and four passengers onboard, officials said.
Officials confirmed in a news release that the crash resulted in three fatalities. Two others were taken to Wilcox Medical Center for treatment.
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The crash location along Kauaʻi’s north shore is a popular spot for helicopter tours, with views of cliffs, beaches and waterfalls along the Nā Pali Coast.
Fox News Digital has reached out to Airborne Aviation for comment.
This is a developing story; please check back for updates.
The Associated Press contributed to this report.
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TSA officers lose homes, can’t pay medical bills, can’t afford Easter baskets for their children
FIRST ON FOX — Transportation Security Administration (TSA) officers are receiving their third paycheck of zero dollars on Friday as the DHS shutdown drags on — with President Donald Trump saying late Thursday he would sign an executive order to “immediately pay our TSA Agents in order to address this Emergency Situation” and “quickly stop the Democrat Chaos at the Airports.”
TSA exclusively shared with Fox News Digital stories of officers stationed at various airports across the nation who have been experiencing great personal hardship as a result of the shutdown and its consequences, with names omitted for privacy reasons.
One officer at Hartsfield-Jackson Atlanta International Airport in Georgia had his dream of owning a home abruptly shattered — forcing him to make life-altering decisions.
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His bank denied him a loan for a home in Georgia due to his current inability to make rent payments.
The officer now has to move nearly 1,000 miles to go live with family in New York.
Here are other stories.
Yet another TSA officer, this one working at Tulsa International Airport in Oklahoma, suffered a devastating house fire last week on top of the challenges of receiving no pay.
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As a result, she lost her home, her belongings, her car and a beloved pet.
She and her family now have to rebuild their lives without knowing when she’ll be paid.
Another TSA officer had uprooted her life to move to New York to work at Albany International Airport.
Now, due to the back-to-back shutdowns and her lack of steady pay, her credit score has dropped from 800 to 500.
To survive, she moved into a camper, the agency reported. The electricity in the camper has since gone out — and she can’t afford to have it fixed.
At the beginning of the month, powerful storms ripped through Michigan, with tornadoes reducing some homes to rubble and causing widespread damage in the Great Lake State.
Multiple TSA officers working at Detroit Metropolitan Airport were left with damaged homes and vehicles. Today, these officers cannot afford to fix them, the TSA told Fox News Digital.
A TSA agent working at Portland International Airport in Oregon is the sole caregiver for his mother. He also supports his brother.
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Now, his mother has been diagnosed with stage 3 colon cancer and his brother has suffered a severe leg infection — putting him out of work.
The TSA officer is responsible for these family members’ medical expenses.
A TSA agent at Bismarck Airport in North Dakota has worked there for nearly 10 years — enduring multiple government shutdowns.
She has had to make the tough choice now of leaving the job she loves after realizing she can’t even afford to buy Easter baskets for her children this year.
Since the start of this partial government shutdown, more than 480 TSA officers have been forced to quit their jobs.
“I can tell you right now that the reverberations that will be felt from this will be long-standing,” TSA Deputy Administrator Adam Stahl told Fox News Digital this week.
“They will continue for days [even] after we get a re-appropriation and funding, particularly for the TSA.”
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“We are already taking proactive measures to make sure that we’re going to get our people paid as quickly as possible,” he added.
Fox News Digital’s Preston Mizell contributed reporting.
In just his second season at the helm, Curt Cignetti led Indiana to its first national championship.
During the Hoosiers’ title run, Cignetti became known for his demanding coaching style. Indiana opened spring practice Thursday, and incoming transfer wide receiver Nick Marsh got a crash course in what it means to play for Cignetti.
Marsh, who transferred from Michigan State, arrived at practice in gold cleats. After noting Marsh’s productive two-year stint in East Lansing, Cignetti pivoted to the wideout’s footwear.
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“I didn’t love those gold shoes he came out in today,” Cignetti said. “He learned what getting your a– ripped is all about. I don’t know if that happened to him very often at Michigan State. That was before practice started.”
Marsh totaled 1,311 receiving yards and nine touchdowns at Michigan State. TCU quarterback Josh Hoover also headlines Indiana’s transfer additions.
Cignetti added that the coaching staff has “more work to do with this group than the first two teams,” noting the group is still learning more about players the team will likely rely on next season.
Indiana went 16-0 en route to a thrilling win over Miami in the College Football Playoff national championship in January.
Cignetti framed his callout of Marsh’s cleats as an early message about expectations.
“That was a wake-up call,” Cignetti said of the receiver’s pre-practice cleats. “But he’s really worked hard, done a great job for us.”
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TSA officers lose homes, can’t pay medical bills, can’t afford Easter baskets for their children
Helicopter crashes into ocean off Hawaii coast, leaving multiple dead and injured
DHS shutdown breakthrough comes at cost for Republicans as funding fights nears end
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