Poll: Local governments should be cautious about data center approvals

(The Center Square) – California drivers can expect the state’s gas tax to go up 2.2 cents on July 1, which will bring the total tax to 63.4 cents a gallon.

That will drive up gas prices in the Golden State, which consistently has the nation's highest prices, even further.

“For our hardworking California families - at a time when Democrats and Republicans say the No. 1 issue is affordability - we’re making it harder to make ends meet,” Sen. Tony Strickland, R-Huntington Beach, told The Center Square. “Our gas prices are astronomically high because of taxes - and also because we lost 20% of our oil production and we rely almost exclusively on foreign oil.”

Several other states, Strickland said, suspended their state gas taxes because gas prices in those states also rose. In Georgia, the Legislature temporarily suspended the Peach State’s gas tax after prices surpassed $3 a gallon, far lower than gas prices in California, according to previous reporting by The Center Square.

“Higher gas prices not only hurt those folks who use it at the pump, but also makes groceries cost a lot more,” Strickland said. “Your eggs, your milk, your vegetables, your fruit, higher gas prices get pushed on that. So you have higher grocery costs because of this.”

According to AAA, California’s gas prices went down slightly to $5.61 a gallon on Friday - down from $5.64 a gallon on Thursday. That itself is down from the average price of gas in California one month ago, when prices hit $6.15 a gallon. The national average on Friday was $3.97 a gallon.

Mono County had the most expensive gas prices in California on Friday, according to AAA, which saw the average gallon of gas cost drivers $6.88. Other counties that saw some of the highest gas prices in the state on Friday were Inyo County, on the Nevada border and Sierra County in Northern California, at $6.22 a gallon. Trinity County, also in Northern California, saw average prices around $6.14 a gallon, while the counties of Humboldt and Nevada saw gas prices hover just over $6.

The lowest gas prices in the state were in the Northern California county of Yuba, which saw gas prices around $5.38 a gallon. Other counties in the southernmost part of the state saw slightly higher gas prices. San Bernardino County drivers paid $5.46 a gallon on Friday, while Imperial County saw an average of $5.47.

The gas tax increase could hurt drivers in rural communities the hardest, Strickland told The Center Square.

“They have to drive a lot,”  senator said. “They have to drive more. It’s affecting everybody across the state of California. Look at what gas prices do. They fall disproportionately on those hardworking families that are living paycheck to paycheck.”

Representatives from AAA and the consumer savings company GasBuddy did not respond to The Center Square on Friday. California lawmakers on both sides of the aisle who have authored gas-related legislation also did not respond to The Center Square.

(The Center Square) - The Los Angeles City Council is facing criticism from a Republican Party leader after deciding to move forward with a Nov. 3 ballot initiative to allow noncitizens to vote in local elections.

The council voted Thursday to put the measure on the general election ballot.

“Yesterday's vote by the LA City Council, a body that cannot keep its streets clean of filth, save the lives of broken drug-addicted souls in encampments, fight fires or stop crime, is an affront to all Americans,” Roxanne Hoge, Los Angeles County Republican Party chair, told The Center Square, answering questions by email.

Hoge, who's from Jamaica, said she believes the right to vote is a privilege reserved for American citizens.

“As a naturalized American citizen, the right to vote in this country's elections is incredibly important to me,” Hoge said Friday. “It is a privilege that is properly reserved for people who are either born here or love the U.S.A. enough to make a commitment to follow its laws and swear an oath to protect and defend and follow our constitution — and who then choose to register to vote.”

“Giving noncitizens the ability to vote in our elections is a logistical nightmare that would erode trust in our already-tainted system in California and is wrong,” Hoge added. 

Councilmember Hugo Soto-Martinez of District 13 proposed the initiative, as previously reported by The Center Square.

Soto-Martinez cited other cities such as San Francisco, which allow noncitizen voting in local elections, as grounds for new voting laws in Los Angeles.

Soto-Martinez previously said at a Rules Committee meeting, that if his plan was passed by the council and later approved by voters, nothing would take effect until a future ordinance was adopted by the council and signed by the mayor.

“This gives us the time and flexibility to get it right, to build in safeguards, to protect people's security and to ensure any policy can withstand legal challenges,” Soto-Martinez said.

The Center Square reached out to the office of Soto-Martinez and the White House Press Office for comment on Thursday’s City Council meeting, but did not hear back by the time of publication.

(The Center Square) – In a day that was supposed to feature technical negotiations following the signing of a preliminary peace deal, Iran has instead issued multiple warnings and confusion over the Strait of Hormuz after Vice President JD Vance’s diplomatic trip was canceled.

“Following the publication of the strategic message of the Supreme Leader of the Islamic Revolution regarding the negotiation process and the signing of the memorandum ending the war, Iran's Supreme National Security Council stressed that any deviation or violation by the US side would be met with reciprocal action in accordance with a pre-determined plan,” reads an article by the Iranian Fars New Agency.

The Supreme Leader is the former Ayatollah’s son, Seyed Mojtaba Khamenei, who said in a statement he authorized the signing of the preliminary peace deal based on certain reassurances from the Iranian president, though he himself “held a different view.”

Another article contained a further warning from the Islamic Revolutionary Guard Corps, saying that they would not hesitate to “impose an even greater historic defeat” on the U.S. if it “once again resorts to excessive demands.”

 After President Donald Trump signed the memorandum Wednesday and Vance gave a lengthy press conference on its contents Thursday, plans appeared to be unraveling as soon as Thursday night.

Vance was supposed to arrive in Switzerland on Friday to begin technical negotiations with Iran, but instead the trip was canceled late Thursday.

Israel and Hezbollah traded blows in Lebanon overnight – a violation of the MOU, which states that any fighting between the U.S. and Iran “and their allies” was ended with its signing. 

Then, according to reports, the Islamic Revolutionary Guard Corps forbade vessels from entering the strait because it said the U.S. had violated the MOU.

Esmail Baghaei, a spokesperson for Iran’s Ministry of Foreign Affairs, dismissed those claims “made by some media outlets regarding the closure of the Strait of Hormuz, stating that following the MoU, Iran has taken the necessary measures to ensure the safe passage of commercial vessels through the Strait, and shipping in this route is currently underway,” according to Iranian media company Iran’s Today.

Baghaei was quoted as saying that there the parties were planning to meet “in the coming days.”

(The Center Square) - Assemblymember Carl DeMaio, R-San Diego, has commented further about his call for California Gov. Gavin Newsom to be investigated for using state resources for personal purposes.

He told The Center Square that the Democratic governor violated the state code covering public resources and should be fined.

DeMaio’s request for an investigation came after Newsom filed a Freedom of Information Act request regarding the U.S. Department of Justice’s investigation into him and his wife, Jennifer Seibel Newsom, on Monday, as reported by The Center Square.

DeMaio filed his request via letter with the Fair Political Practices Commission and California Attorney General Rob Bonta on Tuesday, as The Center Square reported.

The legislator elaborated on his request, answering The Center Square's questions by email for this story.

“We are led to believe taxpayer-funded resources may have been used as the FOIA request was sent from the office of the Governor, on official letterhead, and written by the legal affairs secretary of the Office of the Governor,” DeMaio said.

Newsom's FOIA request involved taxpayer-funded resources such as paying the state employee who drafted the letter, DeMaio said. That employee was David Sapp, the legal affairs secretary with the Governor's Office.

Newsom’s actions violate Government Code 8314, DeMaio told The Center Square.

“It is unlawful for any elected state or local officer, including any state or local appointee, employee, or consultant, to use or permit others to use public resources for a campaign activity, or personal or other purposes which are not authorized by law,” the code says.

In this case, the law code defines “personal purpose” as “those activities the purpose of which is for personal enjoyment, private gain or advantage, or an outside endeavor not related to state business.”

The Center Square reached out to Newsom’s office, which answered by email.

“As he has for the last 18 months, the President and his Administration are attacking the Governor, this time through a politicized fishing expedition, because of the work he’s doing as the Governor, where he has consistently been one of the most effective voices pushing back on Trump’s lawlessness,” said Tara Gallegos, Newsom’s chief deputy director of communications.

But DeMaio said Newsom should be fined because the DOJ investigation into the governor focused on personal matters rather than the Office of the Governor.

The law lays out the terms of such a fine.

“Any person who intentionally or negligently violates this section is liable for a civil penalty not to exceed one thousand dollars ($1,000) for each day on which a violation occurs, plus three times the value of the unlawful use of public resources,” the code says.

The Center Square reached out to the Fair Political Practices Commission, which referred questions to the Attorney General's Office. Bonta's office did not respond by the time of publication.

(The Center Square) - Voters in Colorado’s 1st Congressional District will consider tax policies and affordability concerns as they head to the polls on June 30.

The district consists of Denver and is entirely contained within the city limits. U.S. Rep. Diana DeGette, D-Colorado, is seeking her 16th term in Congress but is being challenged by two other Democratic candidates in the primary election.

Melat Kiros, a former lawyer, and Wanda James, a business owner, are challenging DeGette for the Democratic nomination. Kiros, a Democratic Socialist, has sharply criticized DeGette’s tenure in Congress and vowed to defeat her.

"Establishment Democrats are beholden to the same billionaires who keep our prices high, burn our planet, and profit from a genocide. We can change that. It starts by changing who we send to Congress,” Kiros’ website reads.

Kiros did not respond to The Center Square’s request for an interview. She has advocated for Medicare for All, universal childcare and a U.S. arms embargo. Kiros immigrated to Denver in 1998 from Ethiopia.

“I’m interested in policies that expand our freedoms,” Kiros told Ballotpedia. “That includes the freedom to choose what we do for work, the freedom to travel freely, and the freedom to live and grow old with dignity.”

DeGette has pushed back against criticisms of her tenure and said she is a progressive candidate. She said she has supported Medicare for All and criticized other candidates for their lack of experience.

“It would be a very bad choice to pick somebody who has never served in Congress or a legislature,” DeGette said.

DeGette has pushed back against the Trump administration. She voted against the One Big Beautiful Bill Act and blocked funding for the U.S. Department of Homeland Security due to concerns over immigration enforcement throughout the last year.

“We need seasoned people who can fight for us in Washington, who can fight against Donald Trump’s illegal war, who can fight not just to defund but also dismantle ICE,” DeGette said. “We need someone who will be a leader in the next Congress when we take the majority.”

James, a marijuana dispensary owner and board member at the University of Colorado vying for the 1st Congressional District, has also been critical of DeGette. She has focused her campaign on expanding child tax credits, income tax credits and a “College for All” program that would provide tuition-free college for students in families that make less than $125,000 per year.

“I will fight in Congress for the same chance for every student,” James told Ballotpedia. "I will protect and expand Pell Grants, which open doors for students not born into wealth, ensuring college is accessible without lifelong debt.”

Christy Peterson is the lone Republican seeking to challenge DeGette in November. Peterson, who's running unopposed in the GOP primary and will be on the Nov. 3 ballot, told The Center Square she is focused on reducing crime in Denver and providing more funding for local police.

“I want to clean up our cities so crime and lawless behavior is removed and cannot return,” Peterson said. “Without the crime, businesses can once again return, our citizens and visitors can return to enjoy the cafes, restaurants, shopping and cultural experiences of inner city life again.”

Peterson has also applauded the Trump administration’s efforts to pursue fraud in federal programs. She called on further investigations and prosecutions of fraud in Medicare, Medicaid and Social Security.

“So-called ‘good’ programs are not helping people, they’re creating government dependency,” Peterson said.

Degette leads fundraising efforts in the district with more than $975,000 in campaign contributions, according to the most recent Federal Election Commission filings. She received $1,000 from the Johnson and Johnson Political Action Committee, $1,000 from Dominion Energy PAC and $2,500 from the Liberty Mutual Insurance PAC.

Kiros follows behind DeGette with more than $376,000. She has vowed against taking donations from the American Israel Public Affairs Committee and other corporate PACs. James has more than $234,000 and is the third-highest earner in the race.

Both Kiros and James have primarily received campaign contributions from small, individual donors. Ballotpedia classifies the Democratic primary in Colorado's 1st Congressional District as a "battleground race."

Polls are open from 7 a.m. to 7 p.m. on June 30, Election Day. For more information visit the Secretary of State’s website, coloradosos.gov/pubs/elections. Early election results will be published on that evening at www.thecentersquare.com/colorado.

(The Center Square) – Minnesota's special districts reported $5.4 billion in outstanding long-term debt in 2023, while increasingly relying on state funding as pandemic-era federal aid declined.

This is according to a new report from the Minnesota Office of the State Auditor.

The 91-page report examined 572 special districts that submitted financial data to the auditor's office. Special districts are local government entities created to provide specific services such as transportation, housing, public safety, watershed management, airports and economic development.

These entities receive taxpayer funding from local, state and federal governments, as well as revenue from taxes, charges for services, and special assessments.

'Minnesota Special Districts Finances' Report

The report found special districts generated $1.6 billion in governmental fund revenue in 2023, with state grants accounting for the largest share at 37%, followed by charges for services and taxes at 16% each and federal grants at 14%.

Christy John, a research analyst intermediate for the auditor’s office, said one of the most notable trends was a decline in federal and local grants following the expiration of COVID-era funding programs.

“All local governments received federal funding related to the pandemic era,” John told The Center Square. “In 2023, the federal and local support is falling. That’s normal.”

From 2022, federal grants declined 16%, or $42 million, while local grants fell 28%, or $63.6 million. At the same time, state grants increased 23%, or $107.6 million, helping offset the reductions.

John said the decreases largely reflect the winding down of federal pandemic programs such as the Coronavirus Aid, Relief and Economic Security Act and the American Rescue Plan Act that infused large amounts of money into states and localities.

While governmental fund revenues increased overall from the previous year by 7%, special district enterprise operations reported significant operating losses. Enterprise funds are designed to function similarly to private businesses, covering costs primarily through fees and user charges.

According to the report, special district enterprise operations reported $2.2 billion in operating revenue and $3 billion in operating expenses, resulting in an operating loss of $825.8 million.

The Metropolitan Council, a Twin Cities regional planning organization, accounted for much of that deficit, posting $642.8 million in operating losses across four of its five enterprise operations. The only operation to not was environmental services.

However, those losses were largely offset by $1.4 billion in nonoperating revenue. That revenue included federal, state and local grants, and resulted in overall net profit of $177.4 million for the council and allowed special district enterprises overall to report a net profit of $369.1 million.

The report also found that four entities accounted for 80% of all special district long-term debt in Minnesota. The Metropolitan Council, Metropolitan Airports Commission, Western Minnesota Municipal Power Agency and Southern Minnesota Municipal Power Agency collectively held $4.3 billion of the $5.4 billion total.

John said the concentration of debt is not a sign of financial distress.

“It's generally consistent,” John explained. “These four entities carrying the large amount of long-term debt is mainly because they are responsible for financing, constructing, and maintaining main in large infrastructure projects across Minnesota.”

These large entities typically issue revenue bonds to finance major projects, then repay the debt over time through dedicated taxes, fees and other revenue sources, John said.

Although 572 districts reported financial information, the report found that revenue and spending are concentrated among a relatively small number of entities. Of the 412 districts reporting governmental fund revenue, just 33 accounted for 65% of all governmental fund revenue.

The Metropolitan Council, Three Rivers Park District and Southwest-West Central Service Cooperative alone accounted for 35% of total governmental fund revenue.

Government Funding

State Auditor Julie Blaha said the report highlights the importance of stable funding relationships among federal, state and local governments.

“Local government, their whole goal is to keep things steady,” Blaha told The Center Square. “Chaos out of the federal level . . . makes [long-term planning] really difficult.”

Blaha expressed concern that uncertainty surrounding federal funding could complicate funding and long-term planning for special districts.

“If the federal government decides to basically abdicate their role in all of this, it's going to have an impact, and it's going to be significant,” Blaha said.

She warned that if federal support declines, costs could shift to other funding sources.

“If a federal partner drops out, what you see is this starts to shift to property tax,” Blaha said. “That changes people’s day-to-day lives.”

John Jernberg, a research analysis specialist at the auditor’s office, hoped to assuage concerns about special districts potentially coming to rely too heavily on federal funding during the COVID era.

“They were making very conservative decisions on how they used that money, so that they won't be stuck with an ongoing bill,” Jernberg told The Center Square.

That said, Jernberg said he is concerned that residential property taxes could rise as declining commercial property values in Minnesota's largest cities place additional pressure on local governments to make up lost revenue elsewhere.

“The tax base paid by those largest buildings in St. Paul and Minneapolis whose value has gone down means something else has to pick that up,” Jernberg said. “It's going to be residential properties.”

Minnesota had 621 special districts required to report financial information in 2023, though 49 failed to comply with reporting requirements.

Blaha said the report serves as an important benchmark for tracking how special districts fund their operations and whether they can continue meeting long-term financial obligations, particularly as federal funding levels continue to fluctuate.

“The lesson of this report is that this relationship is really important,” Blaha said. “If that relationship changes, people are going to feel it.”

(The Center Square) - Betting on a football score isn't gambling.

At least not according to the federal Commodities Futures Trading Commission.

The commission recently proposed rule changes to strengthen its governance over prediction markets and sports betting. The changes involve how the panel defines "gaming" and "gambling."

The proposal defines limitations for the CFTC's oversight of gaming, aimed at skill-based games but with limits on bets related to war and other extreme markets. The move is the latest development involving the CFTC at a time when the gambling industry opposes prediction markets in Nevada and elsewhere in the U.S. It's also a matter of jurisdictions: State gaming boards oversee casinos and gambling.

The CFTC’s extensive prediction markets proposed rule making from June 12 is the latest move in the argument over prediction markets and their place in the wider gambling world.

According to the CFTC's document about the rule changes, gaming is for recreational or entertainment purposes and exists within a set of rules, where the result is determined by the player based on skill, luck or otherwise.

Gaming, according to the CFTC proposal, is largely defined in contrast to contests and gambling.

“The Proposal defines gaming functionally and distinguishes games from contests such as elections and awards,” read the CFTC document. “Within gaming, the Commission aims to permit contracts settled on aggregate sports outcomes with objective data and integrity infrastructure, while prohibiting pure-chance games and high-risk sports-adjacent designs (e.g., injury, officiating-only, discrete actions, altercations, pre-collegiate events).”

The rule proposal would give CFTC the right to oversee bets made on sports scores and other gaming results. This is in contrast to what it defines gambling as, placing bets on contests like the Nobel Peace Prize or political events, as well as the more minute parts of sports – like what color Gatorade is poured on the Super Bowl winning coach.

The CFTC rules would also ban bets related to terrorism, assassination and war, which it argued would “present significant national security risks.”

Prediction markets have been criticized for offering betting lines on war and other controversial topics, such as a current betting line on Polymarket with over $600,000 in bets that asks, “Will Israel launch a major ground offensive in Gaza by …?” followed by a series of specific dates.

The CFTC said its new gaming definition is a public good, arguing it will increase regulation over prediction markets. The rules proposal gives any interested parties 45 days to comment on the changes, until July 27. 

The CFTC did not respond to questions from The Center Square.

Historically, the CFTC has regulated markets for raw materials and agricultural goods, called commodity markets. 

In the last couple of years the CFTC has overseen regulation of prediction markets as the industry has grown in popularity. Prediction markets, which offer betting lines between users on a variety of subjects from sports to political events, have pushed the limits of the CFTC’s authority, according to many within the traditional gaming industry. 

“There’s no reason this should be regulated any different than people betting on the NFL,” Wayne Winegarden, a senior fellow at Pasadena-based Pacific Research Institute, previously told The Center Square. “You’d have to wonder why it would be.”

The American Gaming Association did not respond to questions on this story.

Nevada, along with many other states, has been through a series of lawsuits against prediction market companies, arguing the CFTC-regulated industry should be compliant with local gaming laws.

(The Center Square) – An Illinois Venezuelan Alliance leader says inflation is a double whammy for members of his community.

Jose Morales, vice president of the IVA’s board of directors, said traveling to Venezuela is easier after the United States removed former President Nicolas Maduro in January.

Morales told The Center Square there is not yet reason for Venezuelans to return.

“A lot of people are not making plans of coming back when you have inflation of over 300% and there are no jobs and there are no services. As you have seen, electricity, health, and even food security is not right where it should be,” Morales told The Center Square.

Morales said inflation in the U.S. is complicating matters.

“It's a double whammy for Venezuelans here because the economy here is struggling, especially after the Iran crisis,” Morales said.

Morales said Illinois Venezuelans are working two or three jobs to support themselves and help their families in Venezuela.

Morales said there is a lot of caution among the Venezuelan people because the apparatus of Maduro’s regime is still in place.

“They are expecting changes. Of course, they don't happen overnight, but the expectation of further change is there, and it hasn't materialized on a plan that people are expecting to see, like when are we going to have elections?” Morales said. 

Maduro’s former vice president, Delcy Rodriguez, is Venezuela’s acting president.

Morales said there has been bureaucratic improvement since the U.S. and Venezuela reestablished diplomatic relations.

The taxpayer impact of U.S. intervention in Venezuela remains unclear.

A U.S. Department of War official told The Center Square in April that total operational costs would be calculated after the operation concludes.

The War Department said President Donald Trump’s $1.5 trillion defense funding request for fiscal year 2027 represents a 42% increase over current funding levels.

(The Center Square) – U.S. Secretary of Housing and Urban Development Scott Turner visited Lansing this week to promote a number of affordable housing projects in mid-Michigan.

This comes as Michigan continues to struggle with rising housing costs and a shortage of inventory, which some have labeled a "crisis" for Michiganders.

Turner joined U.S. Rep. Tom Barrett, R-Michigan, for tours of several housing developments.

“Housing affordability is one of the biggest challenges working families are facing across mid-Michigan and the country,” Barrett said. “The solution isn't more bureaucracy—it's building more homes, expanding opportunities for homeownership, and making sure families can compete in the housing market.”

One of the tours included The Residences at Walter French, a low-income apartment complex developed inside a former Lansing school building.

Turner said this is an example of the importance of "public-private partnerships."

“Lansing is a powerful example of how public-private partnerships can drive meaningful economic growth and community revitalization,” Turner said. “Innovative construction practices and strategic investment through Opportunity Zones are helping increase housing supply and transform historically forgotten communities.”

Turner also met with local housing, business and government leaders to discuss ways to expand housing opportunities across the region, which they said should include continued taxpayer-funded federal housing spending.

“From retention of Community Development Block Grant dollars to funding for housing and homeless resources, federal investments are necessary for Lansing, and all cities, to be successful,” said Andy Schor, mayor of Lansing.

Following the visit, Turner applauded what he saw in Michigan.

“Mid-Michigan is leading the way,” he posted to social media. “Great visit . . . to see public-private partnerships expanding access to affordable housing. That is exactly what the Trump Administration promised to deliver—affordable housing and the American Dream within reach for every family.”

Amy Hovey from Michigan State Housing Development Authority was present as the state-level representative.

"Thank you to U.S. Department of Housing and Urban Development Secretary Scott Turner for touring Michigan this week to see the innovative solutions that are expanding housing opportunities and enhancing communities across the state," the authority said in a statement following Turner's visit. "It’s always valuable to come together with our federal partners to strengthen our collaboration, advance our shared mission, and continue making an impact for Michiganders."

State lawmakers from both sides of the aisle have advanced dozens of housing bills this year as housing availability and affordability remains a growing concern, both in Michigan and nationally.

Last month, Michigan House Republicans approved a package of bills they say would reduce housing costs by eliminating the state property tax, as previously reported by The Center Square.

Many other housing-related proposals continue to move through the state legislature.

Just this week, State Rep. Cam Cavitt, R-Cheboygan, testified before the House Regulatory Reform Committee in support of Michigan's First-Time Home Buyer Savings Program, which allows first-time homeowners to save for down payments through tax-advantaged accounts.

Meanwhile, the Republican-led House recently approved bipartisan legislation that would allow communities to permit certain multi-family housing developments with single-staircase designs.

Yet another proposal would prohibit large corporations from purchasing single-family homes if they already own significant housing portfolios.

“My legislation could not be clearer: corporations will no longer take advantage of our broken housing system for their own gain,” said State Rep. Karl Bohnak, R-Deerton and the bill’s sponsor. “By stopping these predatory practices, we’re ensuring that single-family homes on the market are available for the people who need them.”

Barrett is leading a similar push in the U.S. Congress.

(The Center Square) – Calling it a win for families, Ohio’s new attorney general Friday praised a federal appeals court ruling that allows the state’s social media age verification law to take effect after sitting for more than two years.

Attorney General Andy Wilson praised the ruling that came down Thursday from a three-judge panel at the Sixth Circuit Court of Appeals in Cincinnati, ending an injunction.

Social media, gaming and other internet app companies will now be required to verify a user’s age and get parental consent for children under 16 years old to use a platform.

“This ruling is a win for Ohio families,” Wilson said in a statement. ““The court agreed that parents – not social media companies – should get a say in what kids see online. We have an obligation to keep our children safe, and today, the most dangerous place for our kids is the internet.”

In January 2024, an Ohio law that required social media operators and sites that sell things or provide a service to children to get parental consent before establishing accounts for children under 16 was supposed to take effect.

NetChoice, a trade group representing apps like Facebook, Instagram and TikTok, sued to stop the law and won an injunction that continues to stand as court battles are ongoing.

Chief U.S. District Judge for the Southern District of Ohio Algenon Marbley said in the ruling establishing the injunction that the law would bring financial harm to social media companies for compliance, noting those companies would face significant costs.

He also said the law’s language invited lawsuits by being “capacious and subjective.”

The federal appeals court panel disagreed.

“NetChoice has failed to establish that the act is facially unconstitutional,” the panel held.

It reversed a district court’s ruling and sent the case back to the district court with instructions to enter a judgment in favor of Ohio.

The state argued that the law was a “legitimate exercise of the state's prerogative to regulate contracting with minors,” and did not violate the First Amendment right to free speech.

The three-judge panel in its decision held that, “For young people, who are at a pivotal stage in cognitive development, social media has been linked to issues with sleep, anxiety, body dysmorphia, depression, and bullying.”

NetChoice did not immediately respond to a request for comment on Thursday’s ruling.

NetChoice claimed the law was unconstitutional because it “imposes blanket parental-consent requirements for minors to access and engage in all manner of protected speech across a wide swath of websites,”

One of the judges in the three-judge panel dissented.

“The First Amendment interests of NetChoice overlap neatly with the First Amendment interests of its members’ minor users,” Appeals Court judge Kevin Ritz wrote in a dissent.