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The Walt Disney Company filed a lawsuit Wednesday against Florida Gov. Ron DeSantis, alleging the state's actions toward the company amount to a "targeted campaign" of government retaliation. 

Why it matters: The lawsuit filed in federal court is the latest escalation in a highly public feud between DeSantis, a potential 2024 presidential contender, and the entertainment giant that shows no signs of abating. 

The governor-appointed board — whose members are named as defendants — Wednesday voted to nullify earlier agreements that had given Disney authority over most construction near its Orlando resort. 

In the complaint, Disney said the board's move was "patently retaliatory, patently anti-business, and patently unconstitutional."

The big picture: The standoff between the Republican governor and Disney began after the company publicly denounced Florida's Parental Rights in Education law, which critics dubbed "Don't Say Gay."

DeSantis responded with legislation in April 2022 that revoked the special status of Reedy Creek, a municipal district operated by Disney. In late February, he signed a bill transferring control of the district to the state.

Zoom in: Disney's complaint accuses the DeSantis administration, in part, of violating the company's First Amendment rights, citing the governor's recent statement that the board would hold "Disney accountable."

DeSantis often framed his actions against Disney as a triumph against "woke corporatism," devoting a chapter in his recent book, "The Courage to Be Free," to the feud.

The complaint heavily references these remarks as evidence of DeSantis' "orchestrated" effort to stifle the company's free speech. 

Clay Calvert, a law professor at the University of Florida specializing in the First Amendment, told Axios, "DeSantis might have been his own worst enemy by speaking out" and providing Disney fodder to prove its claim. 

"Disney has to show that the actions taken by the state of Florida were motivated by a desire to punish Disney for speaking out," and the lawsuit laid out "all the statements, not just by DeSantis, but by others."

What they're saying: Disney, in its suit, alleges the company "finds itself in this regrettable position because it expressed a viewpoint the Governor and his allies did not like." The company, per the suit, "wishes that things could have been resolved a different way."

"Disney also knows that it is fortunate to have the resources to take a stand against the State's retaliation – a stand smaller businesses and individuals might not be able to take when the State comes after them for expressing their own views," it added.

DeSantis spokesperson Taryn Fenske told Axios the administration is "unaware of any legal right that a company has to operate its own government or maintain special privileges not held by other businesses in the state."

"This lawsuit is yet another unfortunate example of their hope to undermine the will of the Florida voters and operate outside the bounds of the law."

Catch up quick: After DeSantis installed political allies onto the board earlier this year, members discovered previously made covenant agreements that restricted the state's ability to rein in development at Disney World.

Last week, DeSantis called for the agreements made under the former Disney-allied board to be voided. 

He also encouraged lawmakers to revoke other privileges Disney holds in Florida, including its monorail system's exemption from state inspections.

Of note: DeSantis' critics, including former President Donald Trump, blasted his handling of the situation.

File-Stamped Disney Complaint[1]

Editor's note: This story has been updated with additional details and developments.

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Disney sues DeSantis over alleged "targeted campaign"

The lawsuit is the latest escalation in a highly public feud between DeSantis and Disney.

Florida Governor Ron DeSantis speaks to a crowd at the North Charleston Coliseum on April 19, 2023.

Florida Governor Ron DeSantis speaks to a crowd at the North Charleston Coliseum on April 19, 2023. Photo: Sean Rayford/Getty Images

Florida

Politics & Policy

The annual switch to a pricier variety of gas known as summer blend is almost complete — meaning prices at the pump are likely peaking and could fall before beach season begins.

Why it matters: Summer blend fuel, a higher grade of gas, can add up to 15 cents per gallon in the spring, according to NACS, the trade organization for fuel and convenience stores.

That's in addition to price increases that come with seasonal demand, which can vary from 5 to 15 cents per gallon.

Since 2020, gas prices have increased seasonally about 50 cents from a  low at the beginning of February to the seasonal high in May, the group estimates.

The big picture: Over the last 10 years, the average date summer gas prices have peaked nationally has been May 2, Patrick De Haan, head of petroleum analysis at GasBuddy, told Axios.

"While I'm not yet ready to say 'hey, we're done with the increases,' we're getting close," De Haan said in an interview last week. "We're going to peak I believe in the next few weeks and we may not go much higher."

It's possible prices could push $3.80 or $3.90 a gallon nationally, De Haan said, and $4 gas could return later this summer if there's a hurricane or refinery issue.

"We are going to see probably pretty large gas deflation from now through hurricane season," AAA spokesperson Andrew Gross told Axios of gas prices nationally.

Summer prices could average about $3.50 per gallon, 80 cents less per gallon than last summer, the U.S. Energy Information Administration estimates.

The price for a gallon of regular unleaded was $3.646 Wednesday, down from $3.684 a week ago, according to AAA data. Wednesday’s prices were up nearly 21 cents from a month ago.

Gasoline has a greater chance of evaporating from cars during the warmer months of summer, which can create smog and exhaust. In 1990, Congress amended the Clean Air Act to require an annual switch to summer-blend gas.

To cut down on pollution, the EPA requires petroleum refiners to reduce the "vapor pressure" of gasoline during the summer.

"This type of gasoline is required in the warmer months because it helps or contributes to less low-level ozone," De Haan said.

It burns cleaner with lower emissions, he said, adding it's critical "when hotter temperatures can interact with the exhaust off of the vehicles to create low-level ozone that is unhealthy for sensitive groups and others."

There are different blends of summer gasoline and it depends where you live on the kind you'll find at the pump.

Big cities including New York, Chicago, St. Louis and Los Angeles have a more stringent type called reformulated summer gasoline, De Haan said.

Summer gas is already in pumps across the country even though we are months from the official change in season.

Fuel terminals are required to sell only summer gasoline on May 1, while gas stations have until June 1 to complete the changeover to summer gasoline.

Retailers must sell summer-blend gas from June 1 to Sept. 15, which is required under the Clean Air Act's 1990 amendments, but most switch over early.

There are a few reasons why prices rise every spring, De Haan said.

Typically there is rising demand as Americans want to go outside more.

Refineries do maintenance in the spring, which means they shut down portions of facilities and produce less gas.

And then there's the switch to summer gasoline. "Cleaner components, things that are better for the environment are often slightly more expensive," De Haan said.

OPEC's unexpected production cuts earlier this month also caused the price of gas to go up, De Haan said.

What's next: Relief should be on the way to the pump before Memorial Day.

"Typically, the summer is frontloaded and the highest prices are before or just as summer starts," De Haan said. " The lowest prices are as summer is setting in September because the supply of gasoline builds up over the course of the summer."

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Summer blend gas is now available at many gas stations across the nation.

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Breaking climate science and policy coverage as extreme weather events reshape communities. Keep tabs on the race to a low carbon economy, which may be bumpy as governments, climate tech startups and major oil and gas companies race to find their niche amid the changing energy landscape.

Energy & Climate

The Climate Funders Justice Pledge (CFJP) has mobilized $120 million in funding from major climate donors, the group tells Axios.

Why it matters: The new milestone demonstrates the growing recognition that minorities and low-income residents tend to suffer the most from climate change, including extreme weather events such as heat waves and flash floods.

It also signals growing momentum behind climate justice as a pillar of work in the climate space among major donors.

Background: The effort was launched by the Donors of Color Network two years ago to help steer more resources toward groups run by, and focused on, communities of color.

In addition to the funding, two major climate philanthropies — the Kresge Foundation and Pisces Foundation — have now exceeded the pledge’s target to devote at least 30% of their climate funding to such groups.

Zoom in: The total number of pledge signatories is now up to 33, with the Wallace Global Fund committed to being transparent about how much money it is steering to organizations led by members of communities of color, which is the first stage of the pledge.

Despite the $120 million, most philanthropic dollars are still going toward other climate change work.

According to a CFJP statement, only 1.3% of dollars committed to U.S. climate philanthropy goes to such groups, despite a recent influx of new money into the climate space via organizations like the Bezos Earth Fund.

What they're saying: Abdul Dosunmu, who leads the pledge work for the Donors of Color Network, told Axios the goal of the pledge is aimed at strengthening the climate movement and allowing it to benefit those who are most affected.

“Ultimately, the communities that are closest to the problem, and therefore closest to the solution, are the furthest away from the resources,” he said.

Between the lines: "This is not your grandmother's Sierra Club, this is a very different kind of movement that combines on the ground modeling of different kinds of behaviors, that involves advocacy, it involves different tools for engaging in public policy and decision-making," said Rip Rapson, Kresge Foundation president and CEO, in an interview. 

"And so it's really putting all your players on the field in a way that I think even five or six years ago, wasn't the case," he added.

He said since Kresge took the pledge in 2021, the organization has pledged $30 million to $35 million toward organizations working on climate change and led by underrepresented groups.

For example, Kresge is working with community groups in East Detroit to address chronic flooding issues.

Rapson noted that climate change is inextricably linked to other complex systems, such as public health, housing and economic development; previous silos between these issues are “eroding,” he adds.

The bottom line: Dosunmu told Axios that his group’s philanthropic advocacy efforts are making headway, but have a long way to go. 

"We are really trying to radically change conditions on the ground for BIPOC-led environmental justice organizations," he said, adding that "$120 million is really just the tip of the iceberg in terms of what is possible."

Kresge, Pisces and the Schmidt Family Foundation now meet or beat the pledge's 30% funding threshold, per the CFJP. 

Climate pledge mobilizes $120M to focus on environmental justice

The Climate Funders Justice Pledge has mobilized $120 million in funding, the group tells Axios.

Climate change

Several UN agencies and international aid groups issued a series of dire warnings this week as the humanitarian situation in Sudan worsened amid 11  days of fighting between the Sudanese military and a powerful paramilitary group for control of the country.  

The big picture: More than 450 people have been killed and at least 4,072 people have been injured since the fighting between the Sudanese military and Rapid Support Forces (RSF) erupted. Several hospitals have been forced to close, aid agencies have suspended or significantly scaled back their operations and the country is facing growing shortages of basic supplies. 

Thousands more people are expected to flee to neighboring countries like Chad and South Sudan, which already host hundreds of thousands of refugees and internally displaced people due to conflict, climate change and economic crises in the region. 

The Sudanese military and RSF agreed to a 72-hour cease-fire that started early Tuesday, but there were reports of several violations across the country, including in the capital Khartoum.

What they're saying: "Sudanese people are staring into the abyss," Jens Laerke, spokesperson for the UN humanitarian agency (OCHA), told reporters Tuesday.

Laerke's warning echoed that of UN Secretary-General António Guterres who said on Monday that Sudan could be heading for “a catastrophic conflagration” that could “engulf the whole region.”

Here's a closer look at the current humanitarian situation: 

Chad and South Sudan have so far received the highest number of refugees fleeing Sudan, but the UN said it has received reports that many have started to arrive in Egypt.

Officials in South Sudan say upwards of 10,000 refugees have arrived from Sudan in the past few days.

Marie-Hélène Verney, an official with the UN’s refugee agency (UNHCR) in South Sudan, said most of those arriving were people who had previously fled South Sudan but were now returning, with a smaller number of Sudanese nationals seeking asylum in their southern neighbor.

The numbers are rising rapidly, and UNHCR is preparing for 165,000 refugees to cross the border. UNHCR is trying to register arrivals at the remote border crossing and provide them with clean water, Verney said.

South Sudan is itself “extremely fragile” due to a combination of “conflict, climate change, and food insecurity,” Verney said, adding it’s uncertain what the impacts on local communities will be with so many people arriving so suddenly.

UN staff in Chad are also working to distribute food and potable water — a particular concern — to refugees arriving from Sudan, UNHCR official Laura Lo Castro said. 

Many of the roughly 20,000 people who have already fled lack essentials and proper shelter.

The number of arrivals is expected to increase if the cease-fire holds, and could reach 100,000 in a “worst-case scenario,” Lo Castro said.

Humanitarian groups are also preparing for the rainy season in Chad, which typically begins in early June and could make it much more difficult for those fleeing. "The clock is really ticking," Paul Dillon, the spokesperson for the International Organization for Migration, said on Tuesday. 

There are also growing concerns about the impact the crisis could have on countries taking in more refugees.

In South Sudan, about 75% of the population is in need of humanitarian aid, according to the UN. 

Before the recent fighting, Chad already hosted more than half a million refugees — most of whom are from Sudan. 

The UN humanitarian office warned on Monday that "shortages of food, water, medicines and fuel are becoming extremely acute, especially in Khartoum and surrounding areas." 

The prices of basic goods are also rising, with the price of bottled water doubling in some parts of the country. 

At the same time, "cash is scarce and hard to access," making it difficult for those hoping to flee the country, according to OCHA. 

There are also growing concerns the fighting will continue to worsen Sudan's already strained health system.

The World Health Organization has recorded at least 14 attacks on health facilities since the fighting began. Only 25% of the country's health centers are operating at full capacity and more than half have been forced to completely close, Nima Saeed Abid, the WHO's representative in Sudan, told reporters at a UN briefing on Tuesday.

It's becoming increasingly difficult for medical teams to get to patients or for those in need to get to a hospital due to the security situation in the country, Abid said. 

Abid also warned of a "huge biological risk" after one of the warring parties took control of Khartoum's National Public Health Laboratory.

“Trained laboratory technicians no longer have access to the laboratory, and with power cuts, it is not possible to properly manage the biological materials that are stored in the laboratory for medical purposes," Abid said, adding that the site is also home to large blood bank. 

In addition to the lab occupation, Abid said that due to the dire situation facing the health care system, he fears disease outbreaks already affecting the country, including dengue and measles, may lead to many more unnecessary deaths. 

Sudan's rival generals "hold country hostage" as battle of egos turns deadly

How a rivalry between generals sparked a battle to control Sudan

Sudan "staring into the abyss" as humanitarian situation worsens

Hundreds in Sudan have been killed, tens of thousands have fled, and the country is facing major supply shortages.

- People flee their neighbourhoods amid fighting between the army and paramilitaries in Khartoum on April 19

People flee their neighborhoods amid fighting between the Sudanese military and the RSF in Khartoum on April 19. Photo: AFP via Getty Images

Sudan

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Axios Gaming

British antitrust regulators on Wednesday said they'll seek to block Microsoft's $69 billion takeover of video game giant Activision Blizzard, citing how the merger could hinder competition in the emerging cloud gaming market.

Why it matters: This would be the largest gaming merger of all time, but now is being opposed by both U.S. and U.K. regulators, with European Union regulators continuing to investigate.

The Federal Trade Commission sued to block the deal in late 2022, although the New York Post reported Tuesday that Microsoft might close the acquisition while the FTC suit works through the legal system (shades of Illumina/Grail).

What Activision Blizzard is saying: "The [Competition and Markets Authority's] report contradicts the ambitions of the UK to become an attractive country to build technology businesses," an Activision rep said in a statement. "We will work aggressively with Microsoft to reverse this on appeal. " 

The "Call of Duty" maker added that the antitrust ruling does a "disservice to U.K. citizens."

Microsoft president Brad Smith added: "We're especially disappointed that after lengthy deliberations, this decision appears to reflect a flawed understanding of this market and the way the relevant cloud technology actually works."

Be smart: British regulators seemed to be inching toward deal approval before Wednesday's surprising announcement.

Initially voicing caution regarding the merger's impact on multiple markets, the CMA shifted course last month when it said it no longer believed that the deal would hurt competition between Sony PlayStation consoles and Microsoft Xboxes.

But the concern over the merger's impact on cloud gaming remained and proved decisive.  

U.K. regulators to block Microsoft's $69 billion deal for Activision

This would be the largest gaming merger of all time.

In this photo illustration, the logos of Microsoft and Activision Blizzard are displayed in Ankara, Turkiye on January 18, 2022. 

Photo by Hakan Nural/Anadolu Agency via Getty Images

Microsoft

From the Valley to D.C., Big Tech players like Facebook, Google and Amazon are under more scrutiny than ever as new technology develops and privacy and antitrust concerns grow in lockstep with companies’ ambitions.

Technology

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Axios 2028

Top White House officials are rushing to the aid of Vice President Kamala Harris to try to shore up her underwhelming poll numbers heading into 2024.

Why it matters: Harris' numbers are even worse than President Biden's (approval in the high 30%s versus low 40%s). Officials believe that could make her a drag on the ticket as Biden begins a reelection campaign that likely will boil down to a few tight states.

What's happening: There's zero chance Biden will replace her on the ticket  — doing so would be an admission that he botched the most important decision he made as a candidate. So the White House and campaign team are working to give Harris a boost — which her allies feel is long overdue.

Biden's campaign announcement video featured shot after shot of the president and Harris together, as well as her meeting solo with voters.

She's also featured prominently with Biden on the homepage of Biden's revamped website.

Anita Dunn, one of the most powerful West Wing officials, recently directed the White House political and engagement teams to help schedule events with Harris promoting popular Democratic causes such as infrastructure spending and abortion rights.

The backstory: This is a huge shift from much of Biden's first two years, when there was mutual distrust and anonymous sniping between the vice president’s team and the West Wing.

Between the lines: Harris, initially saddled by Biden with no-win issues such as immigration and a stalled voting-rights bill, has frustrated many of his top aides. She has suffered frequent staff turnover, and rarely has been entrusted with high-profile assignments.

Harris' allies point out she has faced sexism and racism, and argue that the White House has not helped her enough. But detractors say her approval ratings are self-inflicted, and include some missteps in high-profile interviews.

What we're hearing: Biden will turn 82 before his second term would begin, and Republicans plan to argue that reelecting him could mean a Harris presidency. If former President Trump, 76, is the GOP nominee, look for him to spend lots of time running against Harris, 58.

The intrigue: Last year's book by Jonathan Martin and Alex Burns, "This Will Not Pass," reported that then-White House communications director Kate Bedingfield had privately criticized Harris. Bedingfield publicly denied the story — but walked over to the vice president's offices and asked to see Harris so she could apologize, according to people familiar with the event.

Much of Harris' team didn't believe Bedingfield's denial and told her the vice president was unavailable.

Harris' aides made Bedingfield wait roughly two weeks until they granted her a meeting with the vice president. Harris' aides insisted the meeting be 15 minutes, max.

The meeting did soothe some tensions. About a week later, when Bedingfield had COVID, Harris personally called to see how she was doing and offered tips for feeling better.

White House spokesperson Andrew Bates told Axios that "after winning the most votes of any ticket" in 2020, "you've seen the results of the strong, consistent partnership between Joe Biden and Kamala Harris and their teams."

Harris spokeswoman Kirsten Allen added that "our teams have been focused on lifting up the priorities of President Biden and Vice President Harris as they build a future where every person in our nation can thrive, and will continue to remain focused on this work together."

What we're watching: Some White House and administration officials say the vice president's team has started to steady because of chief of staff Lorraine Voles, who took over the post a year ago.

Voles, trying to improve the office's culture, had everyone take the Myers-Briggs personality test, then compare their personality profiles, according to two people familiar with the moves.

Some in the office rolled their eyes at Voles' efforts. But others liked it, with one person comparing her to the gushy Ted Lasso character on the Apple TV show.

Harris hasn't had a communications director since Jamal Simmons left in January. Her office did pitch veteran Democratic strategist Jennifer Palmieri about the post, but she demurred. Palmieri declined to comment.

Scoop: Inside Biden's strategy to repair Harris' image

White House officials rushing to help the vice president improve her poll numbers.

President Biden and Vice President Harris raise their clasped hands after speaking at a Democratic National Committee meeting on Feb. 3, 2023, in Philadelphia.

President Biden and Vice President Harris raise hands after speaking at the Democratic National Committee winter meeting on Feb. 03 in Philadelphia, Photo: Anna Moneymaker/Getty Images

Kamala Harris

President Biden and South Korean President Yoon Suk-yeol will sign a declaration on nuclear coordination during Yoon's visit to Washington this week in response to "provocations" from North Korea, senior U.S. officials briefed reporters.

Why it matters: North Korea's nuclear breakthroughs and unprecedented increase in missile testing have inflamed debate in South Korea about whether the country can still entrust its security to its nuclear-armed ally in Washington. In the new "Washington Declaration," Biden will announce new measures to coordinate with Seoul and deter Pyongyang, while Yoon will re-commit to non-proliferation.

One announcement that's likely to spur outrage from North Korea is the U.S. commitment to the "regular deployment of strategic assets" in the region, including the first "visit" of a nuclear ballistic missile submarine to South Korea since the 1980s, a senior official said. There will also be a "regular cadence" of "visits" from bomber aircraft, aircraft carriers and other such assets.

A new U.S.-South Korea "nuclear consultative group" will focus on "nuclear and strategic planning issues" and give the South Korean side "new insights" into how the U.S. plans for scenarios like a possible nuclear exchange, the senior official said.

That information-sharing structure is based on steps the U.S. took to reassure European allies who feared a potential Soviet strike during the Cold War.

Yes, but: The U.S. has no intention of basing any nuclear weapons, including lower-yield tactical weapons, on the Korean Peninsula, the officials said. The U.S. once had nuclear weapons in South Korea but withdrew them in 1991.

Between the lines: Recent polls have found that most South Koreans support obtaining their own nuclear weapons, and doubt that the U.S. would use its nukes to defend its East Asian ally.

The Biden administration has previously vowed to destroy the North Korean regime if it uses a nuke. However, the decision on whether to press the nuclear button would be made in Washington, not Seoul.

The new steps are designed in part to "send a strong and reassuringly determined message" to the people of South Korea and the "broader region," an official said. Japan will also take part in the enhanced "crisis communications" planning envisioned in the declaration.

The U.S. briefed China ahead of the announcements, an official told reporters.

Asked about the fact that Beijing will likely object to the planned rotations of nuclear assets to the region, a senior official noted that China had been unwilling to use its influence in Pyongyang to get the regime to stop its "provocations."

U.S. moves to reassure South Korea of protection against nuclear attack

Biden and the South Korean president will sign a "Washington Declaration" on nuclear coordination.

Axios

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