Good morning and welcome to Fox News First. Here's what you need to know as you start your Thursday ...

Trump warns California governor to fix state’s homeless crisis – or else
President Trump had a Christmas Day message for California Gov. Gavin Newsom on Wednesday, and it wasn’t “Happy Holidays!”

Instead, Trump delivered an ultimatum to the Democrat first-term governor regarding the Golden State’s homeless crisis, warning of federal intervention if the problem isn’t addressed soon.

“Governor Gavin N has done a really bad job on taking care of the homeless population in California,” Trump wrote on Twitter. “If he can’t fix the problem, the Federal Govt. will get involved!”

Images of homeless people camped out on streets and in public parks have become commonplace in San Francisco and Los Angeles, as well as the state’s smaller cities. In addition, tech giant Oracle this month moved its long-running OpenWorld conference to Las Vegas, reportedly citing San Francisco’s “poor street conditions” as a factor.

Trump's latest criticism of Newsom came nearly two months after the president scorched the governor for doing a "terrible job of forest management" as wildfires raged across California.

He also warned Newsom that federal funding to battle the wildfires could stop if the state fails to improve its forest management system. Click here for more on our top story.

Booming US economy helps spread Christmas cheer
Holiday sales rose by more than 3 percent this year – with an 18.8 percent increase in online shopping – as more plentiful jobs and fatter paychecks put American consumers in a spending mood this Christmas season.

Pro-U.S. trade deals in the latter half of the year, have also helped drive the U.S. stock market to record levels – making for what White House economic adviser Larry Kudlow calls a “terrific” economy.

“We are in a middle-class boom," Kudlow told FOX Business’ “Bulls and Bears” last week. "Wage-earners, people on the production line are making faster wage increases than their managers. Average income nationwide is up $5,000 after-tax, in the prior two administrations it was flat.”

President Trump helped spread the good news with a Twitter message on Christmas Day.

“2019 HOLIDAY RETAIL SALES WERE UP 3.4% FROM LAST YEAR, THE BIGGEST NUMBER IN U.S. HISTORY,” Trump wrote. “CONGRATULATIONS AMERICA!” Click here for more.

National debt disappears as 2020 campaign issue – but it keeps growing
Remember the Tea Party revolution? “Taxed enough already!,” they shouted, in hopes of forcing Washington to address runaway spending.

Well, guess what? Nearly a decade later, no major presidential candidates from either party seem interested in a national debt that now stands at more than $23 trillion, leaving every American citizen on the hook for almost $70,000.

Meanwhile, the federal deficit — or the annual budget shortfall — is more than $1 trillion.

Democrats generally blame the Trump tax cuts for the rising budget deficit. But both parties have gone along with more spending.

Just last week, Congress passed and Trump signed a $1.4 trillion budget package that boosts spending levels and is expected to add hundreds of billions to the debt over the next decade. In July, the Democratic House and Republican Senate passed, and Trump signed, a budget to temporarily suspend the debt ceiling and hike federal spending by $300 million.

But Jenny Beth Martin, founder of the Tea Party Patriots, remains hopeful that Trump has the American taxpayers’ backs in the long term.

“What President Trump has done in his first term is reform government and cut regulation,” she said. “He has begun to reduce the size and scope of government and his policies are also growing the economy. The only way to get a balanced budget is to cut spending and grow the economy.” Click here for more.

MAKING HEADLINES:
Tennessee man wanted in bar stabbings that killed 2, including 49ers QB’s brother, arrested
MSNBC’s Chuck Todd faces backlash for confusing Toni Morrison with Maya Angelou
Rachel Maddow says ‘implosion’ of NRA would be ‘biggest’ political story if not for impeachment

CLICK HERE TO GET THE FOX NEWS APP

TODAY'S MUST-READS
Wisconsin waitress gets $1,300 tip after valiant cancer fight alongside her sister
Navy SEAL who survived 37 surgeries tells tale of redemption and shares how he overcame adversity
‘It’s a Wonderful Life’ film secrets you probably haven’t heard

THE LATEST FROM FOX BUSINESS
How to snag the real deals the day after Christmas
Tesla faces burgeoning threat in US electric-vehicle market
China ramped up US soybean purchases to 20-month high ahead of partial trade deal 

SOME PARTING WORDS

During a Christmas Day broadcast of "Your World," the Rev. Robert Sirico of The Acton Institute said people should reflect on opportunities for peace in the midst of "very contentious circumstances."

Not signed up yet for Fox News First? Click here to find out what you're missing.

Fox News First is compiled by Fox News' Bryan Robinson. Thank you for making us your first choice in the morning! We'll see you in your inbox first thing Friday morning.