California Democrats threaten to block Newsom priorities over imperiled climate deal

California Senate Democrats threaten to block Gov. Gavin Newsom's priorities, including high-speed rail and electric-car incentives, over his administration's new carbon market rules that divert funds from a prior climate deal. The rules allocate free pollution permits worth up to $4 billion to companies, including fossil fuel industries, risking billions in funding for transit, housing, and environmental programs.