San Francisco is back, baby, and even the federal government is dragging its loafers into the party. The Department of Commerce is eyeing an AI hub in the city’s resurgent tech core, sidling up to OpenAI, Databricks, and the rest of the algorithmic glitterati. That’s the good. Also good: Carlsbad and Oceanside making big dents in their homelessness problems. The bad? State lawmakers have spent nearly a decade ghosting their own audit warnings. And the interesting? Trump wants to hijack L.A.’s post-fire rebuilding permits via executive fiat. Not interesting enough for you? We also have robot toupees. (Trust us.)

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STARS, STRIPES & STARTUPS — San Francisco’s post-Covid resurrection just got a federal stamp of approval. The U.S. Department of Commerce is reportedly setting up a national AI hub in the city, elbowing its way into the same corridors now buzzing with startups and heavyweight firms like Databricks, Anthropic and OpenAI. It’s a tactical move, part of a broader play to get federal eyes and ears closer to the action. As one official put it, Commerce is “positioning itself to lead on technical coordination for testing and safety standards.” It’s clear that even Washington knows where the real AI game is being played. After years of federal downsizing and hand-wringing about abandoned buildings, a shiny new government footprint in SF feels like a plot twist. The city’s office market — sipping AI rocket fuel — is once again a magnet for those who want to ride the wave. Whatever its challenges, San Francisco remains the singular nerve center of America’s tech future. The DC suits are back. Begrudgingly, but back.

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🤫 Everything you should know

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🤨  -  INACTION ITEMS — For nearly a decade, California lawmakers have shelved hundreds of warnings from their own State Auditor, warnings they asked for and taxpayers funded. CBS News California found that three out of four audit recommendations requiring legislative action since 2015 have been flatly ignored. The consequences? A greatest hits of dysfunction: $20+ billion lost to unemployment fraud, $20 billion in homelessness funds spent without a real plan, and public health risks like contaminated drinking water left unaddressed. Most damningly, two-thirds of those audits show lawmakers took no action at all. Some proposed reforms never even made it to a vote, quietly buried in legislative backrooms. “There would still be issues, but not as serious as we are now,” said former State Auditor Elaine Howle. Now, with a fresh crop of legislators and an “Audit Accountability Tracker” on the way, the question is whether new blood will finally acknowledge the warnings — or just keep adding to the pile.  — CBS News

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👏 - CARLSBAD? MORE LIKE CARLSGOOD! — Once a semi-clandestine tent city with a “mayor,” a garden, and an actual cement wall under construction, the Buena Vista Creek encampment in Oceanside was a kind of post-apocalyptic suburbia. Now? Gone. Bulldozed, bagged, and replaced with blooming flora and 30 tons less trash. Thanks to a $11.4M state grant, Oceanside and Carlsbad pulled off an unusually functional government experiment: more than 65 residents now have stable housing, support services, and, miraculously, hope. The secret sauce? A four-zone approach powered by aggressive outreach, rental subsidies, and actual case management. “It’s a weight lifted off their shoulders,” said housing navigator Isaiah Chavira. More zones are on deck, and the recidivism rate is effectively nil. Bonus: fewer 911 calls, happier neighbors, and zero signs of return to the creek. — Voice of San Diego

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👀 - PERMIT PREEMPTION  — President Trump wants to bulldoze California’s permitting process — literally. In a legally questionable executive order, he’s trying to seize control of home-rebuilding permits in fire-ravaged Los Angeles, sidelining state and local authority in favor of fast-tracked federal sign-offs. “I want to see if we can take over the city and state,” he told the California Post. Constitutional scholars say: good luck. The 10th Amendment stands in his way, and experts warn the feds aren’t equipped to manage L.A.’s complex building codes. Meanwhile, Gov. Newsom and L.A. Mayor Bass say the real issue isn’t red tape, it’s Trump’s refusal to greenlight $33 billion in disaster aid. “You can actually speed up recovery by providing the assistance survivors have been waiting for,” Newsom snapped. — POLITICO

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🎙️ 💬 🎧 - ON THE POD: WEEKEND SHERPA

Tired of doomscrolling your weekends away? Weekend Sherpa has been spoon-feeding Californians vetted hikes, hidden beaches, and off-the-beaten-path gems since 2006. It’s indie, it’s earnest, and yes, they actually go to these places. No AI lists, no clickbait. Just curated nature escapism for the chronically indecisive. — Weekend Sherpa

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⌛ 🚀 🤓  - ONLY IN CALIFORNIA

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Need Barbarian Repellent or a top-up on schadenfreude robot emotions? Welcome to the Echo Park Time Travel Mart — where dystopia meets diorama. This delightfully absurd storefront peddles dinosaur eggs, robot toupees, and Michael Jordan pogs in the name of literacy. It’s part retail parody, part creative writing bunker for 826LA, and all chaotic good. Think Wes Anderson meets Doctor Who, but with more caveman mannequins and fewer functioning ethics committees. All proceeds fund future genius. Literally. -  Time Travel Mart

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🏃‍♂️ 💨 ✋ FAST FIVE

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1. 🤩 California easily maintains its startup crown. Axios
2. 💧 Trump is winning his water tug-of-war with Newsom. POLITICO
3. 🔥 Who Decides When a Home Is Safe? A CA Bill Says Science, Not Insurers. NY Times
4. 💰 Sergey Brin drops $20M to combat California housing affordability crisis. Fortune
5. ☑️ San Jose Mayor Matt Mahan joins the gubernatorial field. NY Times