Duong pardon speculation raises stakes in FBI corruption probe
What if Trump pardons the Duongs? Plus, dispatches from Sacramento, Oakland, Hayward, and Alameda
FBI PROBE
—REDEMPTION VALUE—While no confirmed evidence exists that David Duong—the Oakland recycling magnate indicted on federal charges of bribery and conspiracy—traveled to Mar-a-Lago to seek a pardon from President Trump, speculation continues about how such a move could impact the FBI’s ongoing public corruption investigation.
—With the Duong family increasingly appearing to be the central focus of the FBI probe, questions are mounting about what happens if a presidential pardon is ultimately granted.
—David Duong contributed $250,000 to the Trump Victory PAC in 2020, fueling concerns about potential influence.
—Should federal charges be wiped away with a pardon, legal experts point to a clear alternative: state-level prosecution. Because presidential pardons only apply to federal offenses, the California Attorney General or the Alameda County District Attorney could pursue charges independently.
—However, Attorney General Rob Bonta’s longstanding connections with the Duong family—frequently documented in photos on social media—could complicate such a move.
—That leaves Alameda County District Attorney Ursula Jones Dickson as the more likely figure to carry the baton, should local-level action be considered.
—The broader implications for other targets in the FBI’s probe, including former Oakland Mayor Sheng Thao and her partner Andre Jones—both indicted alongside the Duongs in January—remain unclear.
—David Duong’s legal team successfully petitioned a federal judge earlier this year to allow him to travel to Trump’s inauguration in January, and to Florida last April, according to The Oaklandside.
—These developments further fuel speculation that the Duongs may be seeking political leverage as their legal troubles intensify.
—Meanwhile, Trump has continued to show a willingness to grant pardons, especially to individuals who link their legal troubles to his own, which now include 34 felony counts.
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STATE NEWS
—ELECTION 2026—East Bay State Sen. Aisha Wahab is up for re-election in the June 2026 primary. The labor-backed Democrat is expected to be a strong favorite for re-election, but a prospective candidate from the Santa Clara County portion of the state senate district is emerging.
—Milpitas Mayor Carmen Montano’s name has been mentioned in recent months as a potential Democratic challenger. Montano further fueled the rumors when she showed up at “No Kings” protests in Hayward and Union City on June 14.
—RENTERS' RELIEF REBOOT—East Bay State Sen. Aisha Wahab’s legislation is part of the landmark housing package signed into law by Gov. Gavin Newsom on Monday.
—Senate Bill 681 quadruples the refundable renter’s tax credit (up to $1,000 per household), caps rental “junk fees,” and strengthens tenant protections and foreclosure safeguards.
—It also includes a total of $1.4 billion in funding for first-generation homebuyers, low-income housing tax credits, and assistance for the unhoused.
—CEQA SLAYER—East Bay Assemblymember Buffy Wicks was also part of the Legislature’s groundbreaking housing package.
—The bill exempts qualifying urban infill housing projects—unused or underutilized properties under 20 acres and compliant with local zoning—from CEQA lawsuits and delays.
—It aims to accelerate housing construction in cities like Oakland and reduce the use of CEQA as a tool to block development. Supporters say it tackles the housing crisis; critics warn it may weaken environmental protections.
—NOT JESSIE’S GIRL—Freshman East Bay State Sen. Jesse Arreguín made a rookie mistake and it cost him a mea culpa.
—Earlier this month, Southern California State Sen. Monique Limón won the election to become its next president pro tempore. She replaces termed out State Sen. Mike McGuire as leader of the state senate.
—Arreguín, though, picked the wrong horse and backed the candidacy of State Sen. Lena Gonzalez.
—In order to cozy up to the new state senate leader, Arreguín congratulated Limón with flowers and a card.
EDUCATION
—FAILING GRADE—The Trump administration is threatening to impound more than $800 million in funding for state education on Monday. The funds were due to be released on Tuesday.
—No legal justification was given to state leaders, said California Superintendent of Public Instruction Tony Thurmond, a former East Bay state legislator.
—“The President is completely disregarding the democratic process by impounding dollars already budgeted, rather than trying to make his case for cuts to elected representatives sent to Congress by the American people to make these decisions,” Thurmond said on Tuesday.
CITY NEWS
OAKLAND
—GARBAGE IN, GARBAGE OUT—A proposed amended ordinance, born out of a settlement with property owners in Oakland to allow landlords to charge increases in garbage rates to tenants, failed to gain support from the Oakland City Council on Tuesday.
—“There’s only two reasons for this,” said James Vann, a longtime Oakland advocate for tenants and the unhoused, “One is greed, and the other is to dismantle the well-functioning Rent Adjustment Program.”
—Under the settlement of a lawsuit between the city and the property owners, the City Council agreed to discuss the proposed legislation, but was not required to approve it as a condition of the agreed terms.
—A motion to support or oppose the amended ordinance was not required, City Attorney Ryan Richardson told the council. No motion was made by the council, effectively killing the proposed amended ordinance.
—The plaintiffs in the case had asserted that franchise fees charged to Oakland’s garbage and recycling companies constituted an unapproved tax on residents.
—SCHOOL IS OUT—Good news tempered immediately by bad news is an Oakland thing. After more than two decades, the Oakland Unified School District escaped state receivership. The last payment to a $100 million loan from the state was made on Monday.
—However, Oakland Unified’s chief business officer warned the school board that its $95 million budget shortfall was cured with many one-time solutions.
—If decisions for its structural deficit are not addressed, an estimated $78 million budget shortfall in Fiscal Year 2026-27 could bankrupt the school district, staff said,
HAYWARD
—SCHOOLS ON EDGE—The Hayward Unified School District also continues to struggle with an uncertain fiscal future. The school district was tinkering with fiscal insolvency earlier this year.
—Hayward Unified is anticipating a $12 million shortfall for the next fiscal year, the Hayward Herald on Substack reported on Tuesday. (Subscribe to the Hayward Herald today. It’s one of the East Bay Insiders’ recommended Substacks.)
—In addition, the Trump administration’s immigration policies and threats of ICE raids could greatly impact Hayward Unified’s state funding due to anticipated drops in daily student attendance, the Hayward Herald reports. Hayward has the largest Latino population in the county.
ALAMEDA
—POP GOES THE POWER GRID—Alameda Mayor Marilyn Ezzy Ashcraft is hoping to pop your Mylar balloons.
—She penned a forthcoming opinion piece for the East Bay Times, she said at Tuesday night’s meeting, to highlight the impact of metallic balloons on power lines.
—Ashcraft is urging for a greater public education campaign about balloons that can cause power outages, fires, and damage power lines. “Celebrate with other decorations,” Ashcraft said, “because it’s just not worth it.”
—State legislation to curb the presence of Mylar balloons near power lines was one of former East Bay Assemblymember Bill Quirk’s most memorable.
—The bill, introduced in 2022 and signed into law by Gov. Gavin Newsom, phases out the sale of Mylar balloons unless they are non-conductive by Jan. 1, 2027.
—4TH OF JULY PARADE—Although, Fremont’s Fourth of July parade is taking the year off, Alameda’s longest-in-the-nation Independence Day parade starts Friday at 10 a.m.
—In addition to the members of the Alameda City Council, the scheduled list of elected officials in this year’s parade include:
—California Attorney General Rob Bonta, Assemblymember Mia Bonta, Rep. Lateefah Simon, State Sen. Jesse Arreguín, Alameda County Supervisor Lena Tam, Alameda County District Attorney Ursula Jones Dickson, and East Bay MUD Board Director Jim Oddie, among others.
(Look out for me in my Clint Dempsey #8 USA jersey and I’ll give you a free three-month subscription to the East Bay Insiders newsletter.)
