Newsom, Anthropic strike California AI discount deal

June 29, 2026

1–2 minutes

Summary

California agencies will get discounted access to Anthropic’s Claude under a new deal backed by Gov. Gavin Newsom.

Why this matters

The agreement expands California government access to AI tools as officials push to use the technology in state operations. It also highlights a different approach from the federal government’s recent dealings with Anthropic.

Gov. Gavin Newsom and Anthropic reached an agreement allowing California state agencies and local governments to use Claude, the company’s artificial intelligence chatbot, at a discounted price.

Under the deal, agencies will also receive training and support from Anthropic.

“AI should not replace the human work of government; it should help our workers move faster, solve problems more effectively, and deliver better results for Californians,” Newsom said in a statement.

The agreement came as businesses faced high costs for enterprise subscriptions to AI tools.

It followed Newsom’s March executive order aimed at accelerating the use of AI “to make government more efficient” while maintaining stronger safety standards.

“While others in Washington are designing policy and creating contracts in the shadow of misuse, we’re focused on doing this the right way,” Newsom said at the time.

The California agreement also came as Anthropic had disputes with the federal government. Earlier this year, Anthropic and the U.S. Department of Defense disagreed over a contract that would have allowed the agency to deploy Claude for any lawful use.

Anthropic sought language that would bar the government from using its technology to surveil Americans or deploy autonomous weapons without human oversight. Defense Secretary Pete Hegseth declined, and the agency instead signed a deal with OpenAI.

The federal government also designated Anthropic a “supply-chain risk,” which prevented the company from working with other Pentagon contractors.

More top news

Military & National Security

Ursa Major Expands 3D-Printed Missile, Engine Work

Ursa Major said it is scaling 3D-printed rocket motors, hypersonic systems for U.S. military demand.

Full story +

Ursa Major said it is expanding from propulsion into missile development, with a focus on 3D-printed solid rocket motors and liquid-fueled hypersonic systems.

Chief Executive Officer Chris Spagnoletti said the company unveiled its Havoc hypersonic missile in early 2026 as part of a broader effort to address U.S. munitions shortfalls. He said Havoc uses a 3D-printed propulsion system and is intended to be lower-cost and adaptable for air, ground, or vertical launch.

The Colorado-based company said it has produced hundreds of engines and motors and logged more than 135,000 seconds of hot-fire testing in less than a decade. It uses additive manufacturing, including metal printing, in both liquid rocket engines and solid rocket motors.

Co-founder Nick Doucette said Ursa Major applied its manufacturing approach to solid rocket motors after identifying bottlenecks in traditional production, particularly the metal tube structures used in motors. The company said its modular production lines can switch between motors from 2 inches to 22 inches in diameter without major retooling.

Ursa Major said it is producing solid rocket motors in Berthoud, Colorado, and expanding higher-volume production in Galeton, Colorado. Doucette said the company has made several hundred 2.75-inch motors for testing and development for the Advanced Precision Kill Weapons System, or APKWS, produced by BAE Systems. In 2024, the company won a Naval Energetics Systems and Technologies program contract tied to the Mk104 dual-thrust motor used in the Navy’s Standard Missile 2 and SM-6.

In hypersonics, Doucette said Ursa Major’s Hadley engine has flown 10 times on Stratolaunch’s Talon A testbed. He said the company later developed Draper, a 4,000-pound-thrust engine that uses hydrogen peroxide and rocket fuel instead of liquid oxygen, allowing longer storage and tactical use.

Ursa Major then developed Havoc in-house after deciding not to rely on an outside airframe partner, Doucette said. He said the company moved from concept to a flight-ready vehicle in about six months through work with the Air Force Research Laboratory.

The company said it has twice ground-launched a “Havoc Block 0” demonstrator under the Affordable Rapid Missile Demonstrator program. Spagnoletti said the next goal is a boosted hypersonic flight demonstration in 2027.

Ursa Major also operates a 3D-printing facility in Youngstown, Ohio, with final assembly and testing in Berthoud.
VA lead

Virginia budget funds firefighter cancer screenings

Firefighters face a higher cancer risk because of exposure to fumes and chemicals on the job.

Full story +

Virginia’s new two-year budget includes money to help offset federal funding changes to health care and social services, and it adds $2 million a year for firefighter cancer screening grants.

Lawmakers approved the budget June 29 after Gov. Abigail Spanberger proposed the screening measure as a budget amendment in late June.

The grants will help localities pay up to $350 per screening. Virginia Professional Firefighters communications director William Boger said the goal is early detection.

“If you find Stage 1 cancer, it’s a lot better than finding Stage 4,” Boger said. “It’s treatable.”

Studies show firefighters face a higher cancer risk because of exposure to fumes and chemicals on the job. Boger said contaminants can remain on gear or be inhaled during fires, including smoke from plastics and batteries in burning buildings. He also said firefighters’ gear contains chemicals used to improve waterproofing and fire resistance, and that heat can increase absorption of carcinogenic “forever chemicals.”

Last year, Richmond firefighter Jonathan Clarke sued several manufacturers, alleging exposure to polyfluoroalkyl substances, commonly called PFAS, in protective equipment contributed to his 2022 leukemia diagnosis. The International Association of Fire Fighters also filed a related lawsuit focused on testing standards that the association said effectively required PFAS for equipment approval.

“I think it’s great, we need to be doing this,” Clarke said of the funding.

Clarke said he became a firefighter because he “needed a job,” and stayed for 22 years because he loves the work. Boger said public service motivates many firefighters to continue despite the risks.

Earlier this year, Del. Alex Askew, D-Virginia Beach, carried the legislative effort, but it did not survive months of budget debate before Spanberger’s amendment revived it. In prior years, Sen. Bill DeSteph, R-Virginia Beach, Del. Israel O’Quinn, R-Washington, Del. Dolores McQuinn, D-Richmond, and Sen. Aaron Rouse, D-Virginia Beach, also carried the proposal.

Boger said some localities already provide screenings, and the grants will help expand access where local budgets do not cover them. Before the Senate approved the item, O’Quinn urged lawmakers to consider extending the program to volunteer firefighters, who are more common in rural areas.

“The volunteer firefighters are also exposed to the same chemicals, the same toxins,” O’Quinn said. “I would hope that going forward, that we could figure out a way to possibly expand this to volunteer firefighters as well.”

“With this funding, we can catch illnesses earlier, protect the health of those who protect us, and honor the risks they take every day to keep Virginia communities safe,” Askew said.
North Carolina

NC budget funds PFAS study, limits public access

The budget also would limit the Department of Environmental Quality’s authority to issue permits under the Clean Water Act for facilities that discharge pollutants directly into U.S. waters.

Full story +

North Carolina lawmakers proposed another study of PFAS, or per- and polyfluoroalkyl substances, in the new state budget, while shifting the work from a state regulatory agency to an agency overseen by the legislature.

Released Tuesday, the budget set aside $22 million for PFAS research at the North Carolina Collaboratory at UNC-Chapel Hill. PFAS, known as “forever chemicals,” do not break down easily and have been linked to health risks including cancer.

The budget also would classify Collaboratory staff as legislative employees, exempt from public records requests. Created by the General Assembly in 2016, the Collaboratory relies on direct legislative funding.

In the past, similar analysis would have been conducted by the North Carolina Department of Environmental Quality, and the results would have been public record. Under the proposal, the study would remain confidential unless legislative leaders chose to release it.

Southern Environmental Law Center senior attorney Jean Zhuang criticized the plan, saying existing PFAS health data made a new study unnecessary and that the money should have gone to the Department of Environmental Quality for staff or equipment to address contamination.

During the House budget debate Wednesday, Rep. Pricey Harrison, D-Guilford, thanked Republican lawmakers for funding the PFAS study, but said lawmakers had not passed limits on exposure.

Of the $22 million, $15 million would fund a Collaboratory study on PFAS exposure among firefighters. The budget directed the Collaboratory to study PFAS contamination in drinking water wells at firefighters’ homes and at former fire station sites.

The measure also set aside money for a pilot program by the state fire marshal’s office and North Carolina State University to test deep cleaning of firefighters’ protective gear to reduce PFAS exposure.
North Carolina

NC House panel advances bill ending solar tax break

Supporters said repealing the exemption would help counties collect more revenue. Opponents said the tax break supports farmers, solar development, and power supply.

Full story +

A North Carolina House committee on Tuesday advanced a bill that would end a property tax break for future solar energy projects.

Rep. Jimmy Dixon, R-Wayne, presented a revised version of House Bill 1213 to the House Finance Committee after an earlier proposal to repeal tax breaks for data centers was rewritten. Dixon said the solar industry had grown significantly since the exemption was enacted.

“The solar industry in North Carolina has matured greatly over the last 16 years. It’s gone through some of its teenage years and now is becoming an adult and should act on its own as an adult,” Dixon said.

Current law excludes 80% of the value of a solar energy system from local property taxes. House Bill 1213 would end that exclusion for new solar energy electric systems installed after July 1, 2027. Equipment installed before that date would keep the tax break.

Dixon’s bill passed the committee on a 12-8 vote and next heads to the House Energy Committee.
NC lead

NC budget advances after split votes on ferry tolls

Teachers, police, and other state employees will receive raises or bonuses.

Full story +

North Carolina’s state budget cleared initial House and Senate votes Wednesday, setting up final passage expected Thursday.

The Senate approved the budget 36-13. Two Republicans, Sens. Bobby Hanig of Currituck and Norman Sanderson of Pamlico, voted no over a provision adding tolls to all state ferry routes. Senate Democrats split, with nine voting yes and 11 no.

The House passed the budget 92-23, with support from 23 Democrats and two unaffiliated members.

The 634-page bill, released Tuesday, totaled $34.4 billion. Sen. Brent Jackson, a Sampson County Republican, said it provided tax relief and salary increases for state employees and law enforcement. House Republicans said they had slowed previously triggered income tax cuts.

The budget included average teacher raises of 8%, bonuses tied to experience, and a starting base salary of $48,000. State Highway Patrol officers would receive 15% raises, State Bureau of Investigation officers 16.2% increases at each salary step, and other sworn law enforcement officers 13% raises. Most other state employees would receive average raises of 3%, plus one-time bonuses.

Democrats said the budget arrived too late and did not adequately fund education, health care, and state employees. Sen. Val Applewhite, a Cumberland County Democrat, said lawmakers had too little time to review the bill. Rep. Deb Butler, a New Hanover County Democrat, said state workers were receiving too little after getting no raises last year.

Some Democrats voted for the bill despite objections. Senate Democratic Leader Sydney Batch said some members believed they needed to support a budget after a year without a comprehensive plan.

Hanig and Sanderson said the new ferry tolls would burden eastern North Carolina residents who rely on ferries to get to work, school, and medical appointments. Sen. Michael Lazzara, an Onslow County Republican, said the tolls would help fund replacement of the ferry system’s aging fleet.

Democrats also criticized limited funding for early childhood education, the Healthy Opportunities Pilots program, and new restrictions on grants from the Interest on Lawyers’ Trust Accounts legal aid fund. The budget provided $9 million for Healthy Opportunities Pilots, less than the $87 million requested by Gov. Josh Stein.

Senate President Pro Tem Phil Berger, a Rockingham County Republican, said budget decisions ultimately rested with the majority party. Lawmakers were also expected to consider a technical corrections bill before ending the session.
South Carolina

S.C. expands paid parental leave

In 2024, 958 state employees used paid leave after the birth or adoption of a child, according to the Revenue and Fiscal Affairs Office.

Full story +

South Carolina will expand paid parental leave for public employees beginning Oct. 1 under legislation Gov. Henry McMaster signed Tuesday.

The law makes temporary employees and workers in grant-funded positions eligible for up to six weeks of paid parental leave. It also clarifies that employees whose babies are stillborn qualify for six weeks of leave, and it increases leave for the parent who does not give birth — or, in adoption or foster cases, the nonprimary caregiver — from two weeks to four.

The measure expands a 2022 law that granted paid parental leave to employees of state agencies and public colleges. Lawmakers extended that benefit to K-12 public school employees in 2023. The House and Senate passed the latest bill unanimously.

Sen. Darrell Jackson, the bill’s lead sponsor, said in a statement the law is intended to support families “during both moments of joy and moments of unimaginable loss.”
South Carolina

Beaufort deputies seek 2 in Bluffton crime cases

Vernon Tramayne Pope Jr., 18, and Arthur Lee Edwards Jr., 19, both of Pineland, are wanted on several charges.

Full story +

The Beaufort County Sheriff’s Office asked for the public’s help in locating two suspects wanted in connection with multiple reported crimes in Bluffton, according to a June 30 alert.

Vernon Tramayne Pope Jr., 18, and Arthur Lee Edwards Jr., 19, both of Pineland, are wanted on charges of first-degree burglary, criminal conspiracy, grand larceny of a motor vehicle, five counts of breaking into a motor vehicle, and three counts of petit larceny.

The charges stem from incidents on June 23 and 24, when deputies responded to multiple reports of suspicious activity, vandalism, vehicle break-ins, and a stolen vehicle at The Estate at Westbury in Bluffton, the sheriff’s office said.

Investigators later identified Pope Jr. and Edwards Jr. as suspects, according to the sheriff’s office.

Anyone with information was asked to contact Cpl. Laudato at 843-255-3442, the Beaufort County Sheriff’s Office non-emergency line at 843-524-2777, or Crime Stoppers at 844-TIPS-BFT. Tips also can be submitted through TIPSBFT.com or the P3 Tips app.
World

China, Russia naval transits near Japan increase

Japan said Chinese, Russian naval transits near its waters continued last week, with Chinese routes becoming more varied.

Full story +

Chinese and Russian naval vessels made multiple transits through waters around Japan in the past week, as Japanese officials said such activity was broadening in scope.

Japan’s Defense Ministry said eight Chinese navy vessels were spotted heading toward the Pacific between the afternoon of June 26 and early Tuesday morning. Five Russian naval vessels were also seen in waters around Japan between Saturday morning and Monday morning, from Hokkaido to Kyushu.

The number of trips by Chinese and Russian ships through Japanese straits was not unusually high, but “their operations are certainly expanding and intensifying,” a Japan Joint Staff spokesman said Wednesday.

He said the Chinese and Russian movements, which sometimes occur in tandem, appeared coincidental this time. “To the best of our knowledge, this did not involve any joint exercises,” he said.

According to the ministry, Chinese vessels used three of five main transit routes through the Nansei Islands, including Okinawa, to reach the Pacific. A ministry report updated in June said Chinese military vessels were taking “more diverse routes” through the island chain. The report identified the Osumi Strait, Yokoate waterway, Miyako Strait, and passages between Yonaguni and Iriomote, and Yonaguni and Taiwan as key southern routes, along with northern routes such as the Soya and Tsugaru straits.

The frigate Anyang and guided-missile destroyer Dongguan sailed through the Miyako Strait on Friday and Tuesday, respectively. The guided-missile destroyer Suzhou and surveillance ship Tianshuxing passed between Amami Oshima and Yokoatejima on Friday and Monday; the Suzhou returned toward the East China Sea on Sunday.

The frigate Yancheng and replenishment ship Dongpinghu transited the Osumi Strait, south of Kagoshima, between Saturday and Sunday. They were followed by the guided-missile destroyers Nanchang and Xi’an on Sunday and Monday.

Separately, two Chinese destroyers, Guiyang and Xining, sailed southwest Saturday morning and Sunday morning toward the East China Sea in waters northeast of Tsushima, an island between Kyushu and the Korean Peninsula.

The Japan Maritime Self-Defense Force dispatched ships and aircraft to monitor each vessel, according to the ministry.
\top\

Russian strike on Kyiv kills 17, injures dozens

The attack came before Zelenskyy’s planned attendance at a NATO conference, where he is expected to seek more air defense support.

Full story +

At least 17 people were killed and several dozen injured in a Russian missile and drone attack on Kyiv overnight, Ukrainian officials said, hours after President Volodymyr Zelenskyy warned of an imminent “massive” strike.

Ukraine’s emergency services said the death toll rose to 17 after Zelenskyy had earlier reported several dead and at least 90 injured on Thursday. Kyiv Mayor Vitali Klitschko said six floors of an apartment building partially collapsed after a direct hit.

“Kyiv is under attack from ballistic missiles and UAVs,” Klitschko wrote on Telegram.

Tymur Tkachenko, head of Kyiv’s military administration, said at least two children were among the injured and 36 locations across the city were damaged.

Ukraine’s Air Force said Russia launched 74 missiles and 496 drones overnight. It said air defense units downed or neutralized 48 missiles and 476 drones, but 25 ballistic missiles and 12 drones struck 33 locations.

The Russian Defense Ministry said on Telegram that it carried out a “massive attack” on Kyiv and other areas using long-range weapons and drones. It said the strikes targeted military and energy facilities around Kyiv, and military airports in Poltava and Dnipropetrovsk regions, in what it described as retaliation for Ukraine’s attack on civilian infrastructure.

Later Thursday, the Kremlin said President Vladimir Putin had been briefed on the strike. Kremlin spokesman Dmitry Peskov told reporters that Russia would continue increasing pressure on Ukraine to achieve its goals, and accused Europe of escalating tensions.

Zelenskyy, speaking Wednesday at a joint news conference in Dublin with Irish Taoiseach Micheal Martin, said Ukraine had intelligence indicating another large-scale strike was coming and urged people to shelter.

“Today, we have information about another massive Russian strike; we have relevant intelligence data,” Zelenskyy said. In a post on X, he added: “Immediately after this conversation, I am returning to Ukraine.”

Poland briefly scrambled fighter jets Thursday as a precaution, then called them back, saying no airspace violation was recorded.

Officials in Russia said a drone attack killed one person and wounded four in the Nizhny Novgorod region, and authorities in Belgorod said a man was killed and his wife injured after a drone hit their home.
Africa

South Africa arrests 900-plus after migrant protests

March organizers told protesters that demonstrations would continue every Thursday until the government enforced stricter border controls.

Full story +

South African police arrested more than 900 people during anti-migrant protests across the country Tuesday that were mostly peaceful, but turned violent in some areas, with shops looted and one person killed.

The demonstrations were organized by a coalition of more than 20 civil society groups, including the March and March movement. Organizers said the marches marked an unofficial deadline for undocumented migrants to leave South Africa.

Deputy National Police Commissioner Tebello Mosikili said Wednesday that 108 of 120 marches were peaceful, while police intervened in 12. She said arrests were made for offenses including public violence, robbery, and immigration violations.

The Western Cape recorded 215 arrests, the highest total, followed by the Eastern Cape with 208, Mosikili said.

The Presidency said President Cyril Ramaphosa held an emergency meeting Monday with key protest organizers and called for calm. In a statement, Ramaphosa said: “South Africans have raised deep concerns about illegal immigration, border management, pressure on public services. … These concerns are real, and they deserve to be heard.”

He added: “Whatever the motivation, taking the law into one’s own hands is vigilantism and has no place in our constitutional democracy.”

In Johannesburg’s Alexandra township, police said one person was shot dead late Tuesday during looting of foreign-owned informal corner shops, known locally as spaza shops. Soldiers were also sent to Johannesburg’s Hillbrow neighborhood after a shooting injured two people, including a 17-year-old.

In Durban, thousands of protesters marched chanting “Abahambe!” (“They must go!”)