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Tag: Government programs

  • Trump administration says lower prices for 15 Medicare drugs will save taxpayers billions

    NEW YORK — Pharmaceutical companies have agreed to slash the Medicare prices for 15 prescription drugs after months of negotiations, reductions that are expected to produce billions in savings for taxpayers and older adults, the Trump administration said.

    But the net prices it unveiled for a 30-day supply of each drug are not what Medicare recipients will pay at their pharmacy counters, since those final amounts will depend on each individual’s plan and how much they spend on prescriptions in a given year.

    Health Secretary Robert F. Kennedy Jr. touted the deals as part of the administration’s efforts to address affordability concerns among Americans. The Medicare drug negotiation program that made them possible is mandated by law and began under President Joe Biden’s administration.

    “President Trump directed us to stop at nothing to lower health care costs for the American people,” Kennedy said in a statement Tuesday evening. “As we work to Make America Healthy Again, we will use every tool at our disposal to deliver affordable health care to seniors.”

    The announcement marks the completion of a second round of negotiations under a 2022 law that allows Medicare to haggle over the price it pays on the most popular and expensive prescription drugs used by older Americans, bringing the total number of negotiated drug prices to 25. The new round of negotiated prices will go into effect in 2027. Reduced prices for the inaugural round of 10 drugs negotiated by the Biden administration last year will go into effect in January.

    The latest negotiated prices apply to some of the prescription medications on which Medicare spends the most money, including the massively popular GLP-1 weight-loss and diabetes drugs Ozempic, Rybelsus and Wegovy. Some of the other drugs involved in the negotiations include Trelegy Ellipta, which treats asthma; Otezla, a psoriatic arthritis drug; and various drugs that treat diabetes, irritable bowel syndrome and different forms of cancer.

    Dr. Mehmet Oz, Centers for Medicare and Medicaid Services administrator, said the administration delivered “substantially better outcomes for taxpayers and seniors in the Medicare Part D program” than the previous year’s deals.

    Under the first round of Medicare price negotiations, the Biden administration said the program would have saved about $6 billion on net covered prescription drug costs, or about 22%, if it had been in effect the previous year. The Trump administration said its latest round would have saved the government about $8.5 billion in net spending, or 36%, if it had been in effect last year.

    It’s unclear exactly how much money the newly announced deals could save Medicare beneficiaries when they are buying prescription drugs at the pharmacy because those costs are determined by various individual factors.

    A new rule that kicked off this year also caps out-of-pocket drug costs for Medicare beneficiaries at $2,000, giving some relief to older adults affected by high-cost prescriptions. The administration said estimated out-of-pocket savings for Medicare beneficiaries with drug plans is about $685 million.

    Spencer Perlman, director of health care research at Veda Partners, said the Trump administration’s improved outcomes probably resulted from the mix of drugs being negotiated and lessons learned from the first year of negotiations.

    Net drug prices are proprietary, he said, but “if we take the administration at their word, I think it demonstrates that they have secured meaningful price concessions for seniors, meaning the Medicare Drug Price Negotiation Program is working as intended.”

    The GLP-1 weight-loss drugs that were part of the negotiations have been especially scrutinized for their high out-of-pocket costs. Yet it’s still unclear to what extent Medicare beneficiaries who want to use the drugs to treat obesity will be able to do so.

    Medicare has long been prohibited from paying for weight-loss treatments, but a separate deal recently announced between the Trump administration and two pharmaceutical companies included plans for a pilot program that will expand coverage for the drugs to additional high-risk obese and overweight people.

    The Trump administration this year has also negotiated several unrelated deals with drug companies to lower the cost of their products for the wider population.

    Pharmaceutical companies, meanwhile, have sued over the Medicare drug negotiations enabled by the 2022 Inflation Reduction Act and remain opposed to them.

    “Whether it is the IRA or MFN, government price setting for medicines is the wrong policy for America,” Alex Schriver, senior vice president of public affairs at the Pharmaceutical Research and Manufacturers of America, or PhRMA, said in a statement. “These flawed policies also threaten future medical innovation by siphoning $300 billion from biopharmaceutical research, undermining the American economy and our ability to compete globally.”

    Next year, Medicare will negotiate prices for another round of 15 drugs, including physician-administered drugs for the first time.

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  • Fewer Americans sought unemployment benefits last week as layoffs remain low

    WASHINGTON — The number of Americans applying for unemployment benefits declined last week in a sign that overall layoffs remain low, even as several high-profile companies have announced job cuts.

    U.S. applications for unemployment benefits in the week ending Nov. 22 dropped 6,000 from the previous week to 216,000, the Labor Department reported Wednesday. The figure is below the 230,000 forecast by economists, according to a survey by data provider FactSet.

    Applications for unemployment aid are seen as a proxy for layoffs and are close to a real-time indicator of the health of the job market. The job cuts announced recently by large companies such as UPS and Amazon typically take weeks or months to fully implement and may not yet be reflected in the claims data.

    The four-week average of claims, which softens some of the week-to-week volatility, dropped 1,000 to 223,750.

    For now, the U.S. job market appears stuck in a “low-hire, low-fire” state that has kept the unemployment rate historically low, but has left those out of work struggling to find a new job.

    The total number of Americans filing for jobless benefits for the week ending Nov. 15 rose 7,000 to 1.96 million, the government said. The increase is a sign that the unemployed are taking longer to find new work.

    Last week, the government said that hiring picked up a bit in September, when employers added 119,000 new jobs. Yet the report also showed employers had shed jobs in August. And the unemployment rate ticked up to 4.4%, its highest level in four years, as more Americans came off the sidelines to look for work but did not all immediately find jobs.

    On Tuesday, the government reported that retail sales slowed in September after three months of healthy increases. Consumer confidence plunged to its second-lowest level in five years, while wholesale inflation eased a bit.

    The data suggests that both the economy and inflation are slowing, which boosted financial markets’ expectations that the Federal Reserve will reduce its key interest rate at its next meeting Dec. 9-10.

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  • Trump: Democrats’ message to military ‘seditious behavior’

    President Donald Trump is accusing half a dozen Democratic lawmakers of sedition “punishable by DEATH” after the lawmakers called on U.S. military members to uphold the Constitution and defy “illegal orders.” The 90-second video was first posted early Tuesday from…

    By MEG KINNARD – Associated Press

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  • What to know about the impacts Medicaid cuts are having on rural health care

    FRANCONIA, N.H. (AP) — The closing of a health center in rural New Hampshire has raised concerns that the projected cuts in Medicaid are already taking a toll.

    Last month, a site of the Ammonoosuc Community Health Services in Franconia, a town of around 1,000 people, closed for good.

    Ammonoosuc officials and a Democratic senator have blamed Medicaid cuts for the closure of the facility that served 1,400 patients from Franconia, Easton, Lincoln and Sugar Hill. These are all tiny communities around the White Mountains, whose patients typically are older and sicker than in other parts of the state.

    Threats to rural health care

    The closure of the Franconia center reflects the financial struggles facing community health centers and rural health care systems more broadly amid Medicaid cuts and a feared spike in health insurance rates. The government shutdown, which ended last week, was driven by a Democratic demand to extend tax credits, which ensure low- and middle-income people can afford health insurance through the Affordable Care Act, or ACA.

    More than 100 hospitals closed over the past decade, according to the Center For Healthcare Quality and Payment Reform, a policy and advocacy group, and more than 700 more hospitals are at risk of closure. A branch of the HealthFirst Family Care Center, a facility in Canaan, New Hampshire also announced it was closing at the end of October due in part to “changes in Medicaid reimbursement and federal funding” for these facilities.

    On average, the federally-funded community health centers like the one in Franconia are losing money, relying heavily on cash reserves, making service changes and sometimes closing locations to stay afloat, NACHC found. Nearly half have less than 90 days’ cash on hand, according to the association. And the future is even more bleak with at least 2 million community health center patients expected to lose Medicaid coverage by 2034 and 2 million more who are newly uninsured turning to the centers for care.

    Hard choices for CEO

    Ed Shanshala, the CEO of Ammonoosuc, said the Medicaid cuts are to blame for the closure of the Franconia center.

    Shanshala runs a network of five health centers in New Hampshire which relies more than $2 million in federal funding — out of a $12 million budget. He faced a $500,000 shortfall due to the cuts and realized closing Franconia would save about half that money. It also was the only facility where they leased space.

    “We’re really left with no choice,” Shanshala said, adding the closure would save $250,000. Finding additional cuts is hard, given that the centers provide services to anyone under 200% of federal poverty levels, he said. And if he cuts additional services, Shanshala fears some patients will end up in a hospital emergency room or “stop engaging in health care period.”

    Patients struggle to adjust

    Susan Bushby, a 70-year-old housekeeper, talked about how much she loved the staff and feared going to a new health center. She wouldn’t know her way around a larger facility and wouldn’t have the same rapport with the people there.

    “I was very disturbed. I was down right angry,” said Bushby, who was brought to tears as she discussed the challenges of starting over at a new health center. “I just really like it there. I don’t know, I’m just really going to miss it. It’s really hard for me to explain, but it’s going to be sad.”

    Marsha Luce, whose family moved from Washington, D.C. area, in 2000, is especially concerned about the impact on her 72-year-old husband, a former volunteer firefighter who has a left ear and part of his jaw removed due to cancer. He also has heart and memory issues.

    She worries about longer waits to see his doctor and the loss of relationships built up over decades in Franconia.

    “It’s going to be hard,” she said. “But it’s a relationship that’s going to be missed. It’s a relationship that you can talk to people and you tell them something and you go, yeah, well, I’ve had cancer. Oh, let’s see. Oh, yeah. There it is in your chart. Do you know what I mean?”

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  • States scramble to send full SNAP food benefits

    With the longest U.S. government shutdown over, state officials said Thursday they are working quickly to get full SNAP food benefits to millions of people who made do with little-to-no assistance for the past couple of weeks.

    A back-and-forth series of court rulings and shifting policies from President Donald Trump’s administration has led to a patchwork distribution of November benefits under the Supplemental Nutrition Assistance Program. While some states already had issued full SNAP benefits, about two-thirds of states had issued only partial benefits or none at all before the government shutdown ended late Wednesday, according to an Associated Press tally.


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  • Republicans promised health care negotiations after the shutdown, but Democrats are wary

    WASHINGTON — Now that the government shutdown is over, House and Senate Republicans say they will negotiate with Democrats on whether to extend COVID-era tax credits that help tens of millions of Americans afford their health care premiums. But finding bipartisan agreement could be difficult, if not impossible, before the subsidies expire at the end of the year.

    The shutdown ended this week after a small group of Democrats made a deal with Republicans senators who promised a vote by mid-December on extending the Affordable Care Act subsidies. But there is no guaranteed outcome, and many Republicans have made clear they want the credits to expire.

    House Speaker Mike Johnson, R-La., called the subsidies a “boondoggle” immediately after the House voted Wednesday to end the shutdown, and President Donald Trump said the Obama-era health overhaul was “disaster” as he signed the reopening bill into law.

    It is far from the outcome that Democrats had hoped for as they kept the government closed for 43 days, demanding that Republicans negotiate with them on an extension before premiums sharply increase. But they say they will try again as the expiration date approaches.

    “It remains to be seen if they are serious,” said House Democratic leader Hakeem Jeffries of New York. But he said Democrats “are just getting started.”

    Republicans have been meeting privately to discuss the issue. Some want to extend the subsidies, with changes, to avoid the widespread increases in premiums. Others, like Johnson and Trump, want to start a new conversation about overhauling “Obamacare” entirely — a redo after a similar effort in 2017 failed.

    Health care has long been one of the most difficult issues on Capitol Hill, marked by deep ideological and political divides. Partisan disagreement over 2010 law has persisted for more than a decade, and relationships are already strained from weeks of partisan tensions over the shutdown.

    Connecticut Rep. Rosa DeLauro, the top Democrat on the House Appropriations Committee, said that while Republicans have promised negotiations and a Senate vote, Democrats are wary. She noted that Johnson has not committed to anything in the House.

    “Do I trust any of them? Hell no,” DeLauro said.

    If the two sides cannot agree, as many as 24 million people who get their health care from the exchanges created by the law could see their premiums go up Jan. 1. New Hampshire Sen. Jeanne Shaheen, one of the Democrats who struck a deal with Senate Majority Leader John Thune, R-S.D., to reopen the government, said she thinks an agreement on the tax credits is possible.

    During the talks that led to the shutdown’s end, Shaheen said she and other moderate Democrats sat across from Thune and “looked him eye to eye” as he committed to a serious effort.

    “We’re going to have a chance to vote on a bill that we will write by mid-December, in a way that gives us a chance to build — hopefully build — bipartisan support to get that through,” Shaheen said.

    While Democrats would like to see a permanent extension of the tax credits, most realize that is unlikely. Just before the shutdown ended, Senate Democratic leader Chuck Schumer of New York proposed a one-year extension and a bipartisan committee to address Republican demands for changes to the ACA. But Thune said that was a “nonstarter” as the government remained shut down.

    In the House, Democrats have proposed a three-year extension.

    While Republicans have long sought to scrap Obamacare, they have had challenges over the years in figuring out what would replace it. That problem plagued the 2017 effort, when then-Sen. John McCain, R-Ariz., cast the deciding vote to kill a bill on the Senate floor that was short on detail.

    Republican Sen. Bill Cassidy of Louisiana, chairman of the Senate Health Education Labor and Pensions Committee, and Sen. Rick Scott, R-Fla., have proposed overhauling the law to create accounts that would direct the money to individuals instead of insurance companies. Those are ideas that Trump echoed as he signed the funding bill Wednesday evening.

    “I want the money to go directly to you, the people,” Trump said.

    It is unclear exactly how that would work, and scrapping the law in its current form would take months, if not years, to negotiate, even if Republicans could find the votes to do it.

    Some moderate Republicans in the House have said they want to work with Democrats to extend the subsidies before the deadline, which is only weeks away. In a letter to Thune and Schumer on Wednesday, Pennsylvania Rep. Brian Fitzpatrick, the Republican co-chair of the Bipartisan Problem Solvers Caucus, encouraged negotiations.

    “Our sense of urgency cannot be greater,” Fitzpatrick wrote. “Our willingness to cooperate has no limits.”

    So far, though, Senate Republicans have been meeting on their own to figure out their own differences.

    “Right now, it’s just getting consensus among ourselves,” Sen. Thom Tillis, R-N.C., said Monday after GOP members of the Senate Finance Committee met to discuss possible ways forward.

    Tillis is supportive of extending the tax credits, but said lawmakers also need to find a way to reduce costs. If the two sides cannot eventually agree, Tillis said, Republicans may have to try and figure out a way to do it on their own, potentially using budget maneuvers that enabled them to pass Trump’s “Big Beautiful Bill” this summer without any Democratic votes.

    “We should have that in our back pocket too,” Tillis said.

    Some House Democrats have raised the possibility that there could be another shutdown if they are unable to win concessions on health care. The bill signed by Trump will fully fund some parts of the government, but others run out of money again at the end of January if Congress does not act.

    “I think it depends on the vulnerable House Republicans who are not going to be able to go back to their constituents without telling them that they’ve done something on health care,” said Rep. Pramila Jayapal, D-Wash.

    “We’ll just have to see” if there could be another shutdown, said Rep. Mark Takano, D-Calif.

    Rep. Jim McGovern, D-Mass., said he is “not going to vote to endorse their cruelty” if Republicans do not extend the subsidies.

    DeLauro said that Republicans have wanted to repeal the ACA since it was first enacted. “That’s where they’re trying to go,” she said.

    “When it comes to January 30 we’ll see what progress has been made,” she said.

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  • Trump administration renews Supreme Court appeal to keep full SNAP payments frozen

    President Donald Trump’s administration returned to the Supreme Court on Monday in a push to keep full payments in the SNAP federal food aid program frozen while the government is shut down, even as some families struggled to put food on the table.

    The request is the latest in a flurry of legal activity over how the program that helps 42 million Americans buy groceries should proceed during the historic U.S. government shutdown. Lower courts have ruled that the government must keep full payments flowing, but the Trump administration is asking the Supreme Court to keep them frozen for now.

    The high court is expected to rule Tuesday.

    The seesawing rulings so far have created a situation where beneficiaries in some states, including Hawaii and New Jersey, have received their full monthly allocations and those in others, such as Nebraska and West Virginia, have seen nothing.

    Brandi Johnson, 48, of St. Louis, said she’s struggling to make the $20 she has left in her SNAP account stretch. Johnson said she has been skipping meals the past two weeks to make sure her three teenage children have something to eat. She is also helping care for her infant granddaughter, who has food allergies, and her 80-year-old mother.

    She said food pantries have offered little help in recent days. Many require patrons to live in a certain ZIP code or are dedicated to helping the elderly first.

    “I think about it 24 hours a day, seven days a week, literally,” Johnson said. “Because you’ve got to figure out how you’re going to eat.”

    Millions receive aid while others wait

    The Trump administration argued that lower court orders requiring the full funding of the Supplemental Nutrition Assistance Program wrongly affect ongoing negotiations in Congress about ending the shutdown. Supreme Court Solicitor General D. John Sauer called the funding lapse tragic, but said judges shouldn’t be deciding how to handle it.

    The Senate Monday passed a compromise funding package that would end the government shutdown and refill SNAP funds. It now goes to the House for consideration.

    Trump’s administration initially said SNAP benefits would not be available in November because of the shutdown. After some states and nonprofit groups sued, judges in Massachusetts and Rhode Island ruled the administration could not skip November’s benefits entirely.

    The administration then said it would use an emergency reserve fund to provide 65% of the maximum monthly benefit. On Thursday, Rhode Island-based U.S. District Judge John J. McConnell said that wasn’t good enough, and ordered full funding for SNAP benefits by Friday.

    Some states acted quickly to direct their EBT vendors to disburse full monthly benefits to SNAP recipients. Millions of people in at least a dozen states — all with Democratic governors — received the full amount to buy groceries before Justice Ketanji Brown Jackson put McConnell’s order on hold Friday night, pending further deliberation by an appeals court.

    Delays cause complications for some beneficiaries

    Millions more people still have not received SNAP payments for November, because their states were waiting on guidance from the U.S. Department of Agriculture, which administers SNAP. Several states have made partial payments, including Texas, where officials said money was going on cards for some beneficiaries Monday.

    “Continued delays deepen suffering for children, seniors, and working families, and force nonprofits to shoulder an even heavier burden,” Diane Yentel, President and CEO, National Council of Nonprofits, one of the plaintiffs in the lawsuit, said in a statement Monday. “If basic decency and humanity don’t compel the administration to assure food security for all Americans, then multiple federal court judges finding its actions unlawful must.”

    Trump’s administration has argued that the judicial order to provide full benefits violates the Constitution by infringing on the spending power of the legislative and executive branches.

    Wisconsin, which was among the first to load full benefits after McConnell’s order, had its federal reimbursement frozen. The state’s SNAP account could be depleted as soon as Monday, leaving no money to reimburse stores that sell food to SNAP recipients, according to a court filing.

    New York Attorney General Letitia James said Monday that some cardholders have been turned away by stores concerned that they won’t be reimbursed — something she called to stop.

    New Jersey Attorney General Matt Platkin said Trump was fighting “for the right to starve Americans.”

    “It’s the most heinous thing I’ve ever seen in public life,” he said.

    The latest rulings keep payments on hold, at least for now

    States administering SNAP payments continue to face uncertainty over whether they can — and should — provide full monthly benefits during the ongoing legal battles.

    The Trump administration over the weekend demanded that states “undo” full benefits that were paid during a one-day window after a federal judge ordered full funding and before a Supreme Court justice paused that order.

    A federal appeals court in Boston left the full benefits order in place late Sunday, though the Supreme Court order ensures the government won’t have to pay out for at least 48 hours.

    “The record here shows that the government sat on its hands for nearly a month, unprepared to make partial payments, while people who rely on SNAP received no benefits a week into November and counting,” Judge Julie Rikleman of the U.S. 1st Circuit Court of Appeals wrote.

    U.S. District Judge Indira Talwani, presiding over a case filed in Boston by Democratic state officials, on Monday paused the USDA’s request from Saturday that states “immediately undo any steps taken to issue full SNAP benefits.”

    In a hearing later that Monday, Talwani said that communication to states was confusing, especially because the threat came just a day after USDA sent letters to states saying SNAP would be paid in full.

    Federal government lawyer Tyler Becker said the order was only intended for states to receive the full amount of SNAP benefits, and “had nothing to do with beneficiaries.”

    Talwani said she would issue a full order soon.

    ___

    Associated Press writers Scott Bauer in Madison, Wisconsin; Margery Beck in Omaha, Nebraska; John Hanna in Topeka, Kansas; Kimberlee Kruesi in Providence, Rhode Island; Nicholas Riccardi in Denver; and Stephen Groves and Lindsay Whitehurst in Washington, D.C., contributed to this report.

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  • Grocery gift cards at Salem Y available to residents losing SNAP benefits

    SALEM — The city of Salem’s Food Policy Council and the Salem Children’s Alliance have partnered with the Salem YMCA to make donated grocery store gift cards available for residents who lost their SNAP benefits.

    “Thanks to the many generous Salem residents who have already stepped up to donate grocery gift cards to support our neighbors in need during this difficult time,” Mayor Dominick Pangallo said.


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    Michael McHugh can be contacted at mmchugh@northofboston.com or at 781-799-5202

    By Michael McHugh | Staff Writer

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  • Loss of SNAP benefits leads to long food pantry lines

    LOUISVILLE, Ky. — People across the country formed long lines for free meals and groceries at food pantries and drive-through giveaways over the weekend after monthly benefits through the federal Supplemental Nutrition Assistance Program, or SNAP, were suddenly cut off because of the ongoing government shutdown.

    In the New York borough of the Bronx, about 200 more people than usual showed up at the World of Life Christian Fellowship International pantry, many bundled in winter hats and coats and pushing collapsible shopping carts as they waited in a line that spanned multiple city blocks. Some arrived as early as 4 a.m. to choose from pallets of fruits, vegetables, bread, milk, juice, dry goods and prepared sandwiches.


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    By SUSAN HAIGH and DYLAN LOVAN – Associated Press

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  • SNAP benefits cut off during shutdown, driving long lines at food pantries

    LOUISVILLE, Ky. — People across the country formed long lines for free meals and groceries at food pantries and drive-through giveaways Saturday, after monthly benefits through the federal Supplemental Nutrition Assistance Program, or SNAP, were suddenly cut off because of the ongoing government shutdown.

    In the New York borough of the Bronx, about 200 more people than usual showed up at the World of Life Christian Fellowship International pantry, many bundled in winter hats and coats and pushing collapsible shopping carts as they waited in a line that spanned multiple city blocks. Some arrived as early as 4 a.m. to choose from pallets of fruits, vegetables, bread, milk, juice, dry goods and prepared sandwiches.

    Mary Martin, who volunteers at the pantry, also relies on it regularly for food to supplement her SNAP payments. She said she usually splits her roughly $200 a month in SNAP benefits between herself and her two adult sons, one of whom has six children and is especially dependent on the assistance.

    “If I didn’t have the pantry to come to, I don’t know how we would make it,” Martin said.

    “I’m not gonna see my grandkids suffer.”

    The Department of Agriculture planned to withhold payments to the food program starting Saturday until two federal judges ordered the administration to make them. However it was unclear as to when the debit cards that beneficiaries use could be reloaded after the ruling, sparking fear and confusion among many recipients.

    In an apparent response to President Donald Trump, who said he would provide the money but wanted more legal direction from the court, U.S. District Judge John J. McConnell in Rhode Island ordered the government to report back by Monday on how it would fund SNAP accounts.

    McConnell, who was nominated by President Barack Obama, said the Trump administration must either make a full payment by that day or, if it decides to tap $3 billion in a contingency fund, figure out how to do that by Wednesday.

    The delay in SNAP payments, a major piece of the nation’s social safety net that serves about 42 million people, has highlighted the financial vulnerabilities that many face. At the Bronx food pantry, the Rev. John Udo-Okon said “people from all walks of life” are seeking help now.

    “The pantry is no longer for the poor, for the elderly, for the needy. The pantry now is for the whole community, everybody,” Udo-Okon said. “You see people will drive in their car and come and park and wait to see if they can get food.”

    In Austell, Georgia, people in hundreds of cars in drive-through lanes picked up nonperishable and perishable bags of food. Must Ministries said it handed out food to about 1,000 people, more than a typical bimonthly food delivery.

    Families in line said they worried about not getting SNAP benefits in time for Thanksgiving.

    At a drive-through food giveaway at the Calvary Baptist Church in Louisville, Kentucky, SNAP recipient James Jackson, 74, said he is frustrated that people are being hurt by decisions made in Washington and lawmakers should try harder to understand challenges brought by poverty and food insecurity.

    “If you’ve never been poor, you don’t know what it is to be poor,” Jackson said. “I hope that it turns around. I hope that people get their SNAP benefits, and I hope we just come together where we can love each other and feed each other and help each other.”

    While there is typically a long line for Calvary Baptist Church’s drive-through events, the Rev. Samuel L. Whitlow said, the walk-in food pantry has seen increased demand recently with roughly 60 additional people showing up this week.

    And in Norwich, Connecticut, the St. Vincent De Paul soup kitchen and food pantry had 10 extra volunteers working Saturday to help a wave of expected newcomers, making sure they felt comfortable and understood the services available. Besides groceries and hot meals, the site was providing pet food, toiletries and blood pressure checks.

    “They’re embarrassed. They have shame. So you have to deal with that as well,” director Jill Corbin said. “But we do our best to just try to welcome people.”

    ___

    Haigh reported from Norwich, Connecticut. Associated Press photographer Mike Stewart in Austell, Georgia, contributed.

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  • Government shutdown threatens to delay home heating aid for millions of low-income families

    HARTFORD, Conn. — Jacqueline Chapman is a retired school aide who relies on a $630 monthly Social Security check to get by. She was navigating the loss of her federal food aid benefits when she learned the assistance she receives for heating her Philadelphia apartment may also be at risk.

    “I feel like I’m living in scary times. It’s not easy to rest when you know you have things to do with limited accounts, limited funds. There isn’t too much you can do,” said Chapman, 74.

    Chapman relies on the $4.1 billion Low-Income Home Energy Assistance Program, which helps millions of low-income households pay to heat and cool their homes.

    With temperatures beginning to drop in areas across the United States, some states are warning that funding for the program is being delayed because of the federal government shutdown, now in its fifth week.

    The anticipated delay comes as a majority of the 5.9 million households served by the federally funded heating and cooling assistance program are grappling with the sudden postponement of benefits through the Supplemental Nutrition Assistance Program, or SNAP, which helps about 1 in 8 Americans buy groceries. Money is running out for other safety net programs as well and energy prices are soaring.

    “The impact, even if it’s temporary, on many of the nation’s poor families is going to be profound if we don’t solve this problem,” said Mark Wolfe, executive director of the National Energy Assistance Directors Association, which represents state directors of the program. Commonly called LIHEAP, it serves all 50 states, the District of Columbia, U.S. territories and federally recognized tribes.

    “These are important income supports that are all potentially heading toward a cliff at the same time,” Wolfe said. “And I can’t point to a similar time in recent history where we’ve had this.”

    LIHEAP, created in 1981, assists families in covering utility bills or the cost of paying for fuels delivered to homes, such as home heating oil. It has received bipartisan congressional support for decades.

    States manage the program. They receive an allotment of federal money each year based on a formula that largely takes into account state weather patterns, energy costs and low-income population data.

    While President Donald Trump proposed zero funding for the program in his budget, it was anticipated that Congress would fund LIHEAP for the budget year that began Oct. 1. But since Congress has not yet passed a full 2026 spending bill, states have not gotten their new allocations yet.

    Some states, including Kansas, Pennsylvania, New York and Minnesota, have announced their LIHEAP programs are being delayed by the government shutdown.

    In Pennsylvania, Democratic Gov. Josh Shapiro’s administration said it cannot front the $200 million-plus in federal LIHEAP aid it had expected to help pay heating bills for some 300,000 low-income households. It is predicting payments will not go out until at least December, instead of November, as is customary.

    Minnesota’s energy assistance program is processing applications but the state’s Department of Commerce said federal LIHEAP dollars will likely be delayed by a month. The agency does not plan to pay recipients’ heating bills until the shutdown ends.

    “As temperatures begin to drop, this delay could have serious impacts,” the agency said. The program services 120,000 households, both homeowners and renters, that include many older adults, young children and people with disabilities.

    Connecticut has enough money to set aside to pay heating bills through at least the end of November or December, according to the group that helps administer LIHEAP. But the program faces uncertainty if the shutdown persists. Connecticut lawmakers are considering covering the cost temporarily with state budget reserves.

    “The situation will get much more perilous for folks who do need those resources as we move later into the heating season,” said Rhonda Evans, executive director of the Connecticut Association for Community Action. More than 100,000 households were served last year.

    A spokesperson for the U.S. Department of Health and Human Services, which oversees the assistance program, blamed the federal shutdown and the delay in LIHEAP payments on congressional Democrats and said the Trump administration is committed to reopening the government.

    “Once the government reopens, ACF will work swiftly to administer annual awards,” the spokesperson said, referring to the Administration for Children and Families, an agency within HHS. The spokesperson did not directly answer whether the timing could be affected by the administration’s earlier decision to fire workers who run the LIHEAP program.

    Wolfe, from the group that represents state program directors, predicts there could be delays into January. He noted there are questions over who will approve states’ program plans and how the money will be released when it becomes available.

    “Once you’ve fired the staff, things just slow down,” he said.

    Chapman, the retired school aide, may be eligible for a program through her gas utility to prevent being shut off this winter. But the roughly 9% of LIHEAP recipients who rely on deliverable fuels such as heating oil, kerosene, propane and wood pellets, typically do not have such protections.

    Electric and natural gas companies are usually regulated by the state and can be told not to shut people off while the state waits to receive its share of the LIHEAP money, Wolfe said. But it is different when it involves a small oil or propane company, fuels more common in the Northeast.

    “If you’re a heating oil dealer, we can’t tell that dealer, ‘Look, continue to provide heating oil to your low-income customers on the possibility you’ll get your money back,’” Wolfe said.

    Mark Bain, 67, who lives in Bloomfield, Connecticut, with his son, a student at the University of Connecticut, started receiving financial assistance for his home heating oil needs three years ago.

    “I remember the first winter before I knew about this program. I was desperate. I was on fumes,” said Bains, who is retired and relies on income from Social Security and a small annuity. “I was calling around to my social services people to find out what I could do.”

    He has been approved this year for $500 in assistance but he has a half tank of oil left and cannot call for more until it is nearly empty. By that point, he is hoping there will be enough federal money left to fill it. He typically needs three deliveries to get through a winter.

    Bains said he can “get by” if he does not receive the help this year.

    “I would turn the heat down to like 62 (degrees) and throw on another blanket, you know, just to get through,” he said.

    ___

    Levy reported from Harrisburg, Pennsylvania. Associated Press writers Steve Karnowski in Minneapolis, John Hanna in Topeka, Kan., and Jack Dura in Bismarck, N.D., contributed to this report.

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  • Instacart, DoorDash among companies offering discounts to SNAP recipients

    Instacart said Friday it will offer customers who receive SNAP benefits 50% on their next grocery order to ease strain as the government prepares to cut off food aid payments.

    Instacart said any customer who placed an order in October using a SNAP/EBT card will be eligible for the discount, which will be available even if the government makes the payments as planned on Nov. 1. Instacart said it will also triple its usual donations to more than 300 food banks.

    The San Francisco-based grocery delivery company said both programs amount to $5 million in direct relief.

    “As SNAP funding faces unprecedented disruption and food banks brace for longer lines, we’re focused on practical, immediate solutions: helping families who use SNAP stretch their grocery dollars and helping food banks stock up to support their communities,” said Dani Dudeck, Instacart’s chief corporate affairs officer.

    Instacart is one of several big companies reacting to the U.S. Department of Agriculture’s plan to freeze payments to the Supplemental Nutrition Assistance Program on Nov. 1 due to the government shutdown.

    DoorDash, a delivery company also based in San Francisco, said earlier this week it would waive service and delivery fees for an estimated 300,000 orders for SNAP recipients in November. DoorDash said it would also deliver 1 million meals from food banks for free.

    DoorDash said more than 2.4 million customers have a SNAP/EBT card linked to their DoorDash account.

    Instacart didn’t immediately say how many of its customers receive SNAP benefits. The company began accepting online SNAP payments in 2020. It offers discounted memberships for SNAP recipients and zero delivery fees on orders over $35.

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  • Lawmakers grasping for ways to end government shutdown

    Certain senators know it’s time for the government shutdown to come to an end. So does House Speaker Mike Johnson. And with President Donald Trump arriving back in Washington from his overseas trip, perhaps the White House knows it, too.…

    By LISA MASCARO – AP Congressional Correspondent

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  • Food banks are preparing for a surge as federal food aid could be paused in the government shutdown

    Food banks and pantries were already struggling after federal program cuts this year, but now they’re bracing for a tsunami of hungry people if a pause in federal food aid to low-income people kicks in this weekend as the federal government shutdown persists.

    The rush has already begun. Central Christian Church’s food pantry in downtown Indianapolis scrambled Saturday to accommodate around twice as many people as it normally serves in a day.

    “There’s an increased demand. And we know it’s been happening really since the economy has downturned,” volunteer Beth White said, adding that with an interruption in funding for the federal Supplemental Nutrition Assistance Program, “it’s going to continue to get worse for folks.”

    It’s a concern shared by charitable food providers across the country as states prepare for lower-income families to see their SNAP benefits dry up. SNAP helps 40 million Americans, or about 1 in 8, buy groceries. The debit cards they use to buy groceries at participating stores and farmers markets are normally loaded each month by the federal government.

    That’s set to pause at the start of next month after the Trump administration said Friday that it won’t use a roughly $5 billion contingency fund to keep food aid flowing in November in the government shutdown. The administration also says states temporarily covering the cost of food assistance benefits next month will not be reimbursed.

    “Bottom line, the well has run dry,” the U.S. Department of Agriculture said in a statement. “At this time, there will be no benefits issued November 01.”

    It’s the latest in a string of hardships placed on charitable food services, which are intended to help take up the slack for any shortcomings in federal food assistance — not replace government help altogether.

    Charities have seen growing demand since the COVID-19 pandemic and the following inflation spike, and they took a hit earlier this year when the Trump administration ended programs that had provided more than $1 billion for schools and food banks to fight hunger.

    Reggie Gibbs, of Indianapolis, just recently started receiving SNAP benefits, which meant he didn’t have to pick up as much from Central Christian Church’s food pantry when he stopped by on Saturday. But he lives alone, he said, and worries what families with children will do.

    “I’ve got to harken back to the families, man,” he said. “What do you think they’re going to go through, you know?”

    Martina McCallop, of Washington, D.C., said she’s worried about how she’ll feed her kids, ages 10 and 12, and herself, when the $786 they get in monthly SNAP benefits is gone.

    “I have to pay my bills, my rent, and get stuff my kids need,” she said. “After that, I don’t have money for food.”

    She’s concerned food pantries won’t be able to meet the sudden demand in a city with so many federal workers who aren’t being paid.

    In Fairfax County, Virginia, where about 80,000 federal workers live, Food for Others executive director Deb Haynes said she doesn’t expect to run out of food entirely, largely because of donors.

    “If we run short and I need to ask for help, I know I will receive it,” Haynes said.

    Food pantries provide about 1 meal to every 9 provided by SNAP, according to Feeding America, a nationwide network of food banks. They get the food they distribute through donations from people, businesses and some farmers. They also get food from U.S. Department of Agriculture programs and sometimes buy food with contributions and grant funding.

    “When you take SNAP away, the implications are cataclysmic,” Feeding America CEO Claire Babineaux-Fontenot said. “I assume people are assuming that somebody’s going to stop it before it gets too bad. Well, it’s already too bad. And it’s getting worse.”

    Some distributors are already seeing startling low food supplies. George Matysik, executive director of Share Food Program in the Philadelphia area, said a state government budget impasse had already cut funding for his program.

    “I’ve been here seven years,” Matysik said. “I’ve never seen our warehouses as empty as they are right now.”

    New York Gov. Kathy Hochul said she is fast tracking $30 million in emergency food assistance funds to “help keep food pantries stocked,” and New Mexico Gov. Michelle Lujan Grisham said her state would expedite $8 million that had been allocated for food banks.

    Officials in Louisiana, Vermont and Virginia said last week they would seek to keep food aid flowing to recipients in their states, even if the federal program is stalled.

    Other states aren’t in a position to offer much help, especially if they won’t be reimbursed by the federal government. Arkansas officials, for example, have been pointing recipients to find food pantries, or other charitable groups — even friends and family — for help.

    ——-

    AP writers JoNel Aleccia in Los Angeles, Anthony Izaguirre in Albany, New York, Susan Montoya Bryan in Albuquerque, and video journalists Obed Lamy in Indianapolis and Mike Householder in Detroit contributed to this report.

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  • Trump administration posts notice that no federal food aid will go out Nov. 1

    The U.S. Department of Agriculture has posted a notice on its website saying federal food aid will not go out Nov. 1, raising the stakes for families nationwide as the government shutdown drags on.

    The new notice comes after the Trump administration said it would not tap roughly $5 billion in contingency funds to keep benefits through the Supplemental Nutrition Assistance Program, commonly referred to as SNAP, flowing into November. That program helps about 1 in 8 Americans buy groceries.

    “Bottom line, the well has run dry,” the USDA notice says. “At this time, there will be no benefits issued November 01. We are approaching an inflection point for Senate Democrats.”

    The shutdown, which began Oct. 1, is now the second-longest on record. While the Republican administration took steps leading up to the shutdown to ensure SNAP benefits were paid this month, the cutoff would expand the impact of the impasse to a wider swath of Americans — and some of those most in need — unless a political resolution is found in just a few days.

    The administration blames Democrats, who say they will not agree to reopen the government until Republicans negotiate with them on extending expiring subsidies under the Affordable Care Act. Republicans say Democrats must first agree to reopen the government before negotiation.

    Democratic lawmakers have written to Agriculture Secretary Brooke Rollins requesting to use contingency funds to cover the bulk of next month’s benefits.

    But a USDA memo that surfaced Friday says “contingency funds are not legally available to cover regular benefits.” The document says the money is reserved for such things such as helping people in disaster areas.

    It cited a storm named Melissa, which has strengthened into a major hurricane, as an example of why it’s important to have the money available to mobilize quickly in the event of a disaster.

    The prospect of families not receiving food aid has deeply concerned states run by both parties.

    Some states have pledged to keep SNAP benefits flowing even if the federal program halts payments, but there are questions about whether U.S. government directives may allow that to happen. The USDA memo also says states would not be reimbursed for temporarily picking up the cost.

    Other states are telling SNAP recipients to be ready for the benefits to stop. Arkansas and Oklahoma, for example, are advising recipients to identify food pantries and other groups that help with food.

    Sen. Chris Murphy, D-Conn., accused Republicans and Trump of not agreeing to negotiate.

    “The reality is, if they sat down to try to negotiate, we could probably come up with something pretty quickly,” Murphy said Sunday on CNN’s “State of the Union.” “We could open up the government on Tuesday or Wednesday, and there wouldn’t be any crisis in the food stamp program.”

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  • More anti-abortion pregnancy centers offer medical services as Planned Parenthood clinics close

    Pregnancy centers in the U.S. that discourage women from getting abortions have been adding more medical services — and could be poised to expand further.

    The expansion — ranging from testing and treatment for sexually transmitted infections to even providing primary medical care — has been unfolding for years. It gained steam after the Supreme Court overturned Roe v. Wade three years ago, clearing the way for states to ban abortion.

    The push could get more momentum with Planned Parenthood closing some clinics and considering shuttering others following changes to Medicaid. Planned Parenthood is not just the nation’s largest abortion provider, but also offers cancer screenings, STI testing and treatment, and other reproductive health services.

    “We ultimately want to replace Planned Parenthood with the services we offer,” said Heather Lawless, founder and director of Reliance Center in Lewiston, Idaho. She said about 40% of patients at the anti-abortion center are there for reasons unrelated to pregnancy, including some who use the nurse practitioner as a primary caregiver.

    The changes have frustrated abortion-rights groups, who, in addition to opposing the centers’ anti-abortion messaging, say they lack accountability; refuse to provide birth control; and most offer only limited ultrasounds that cannot be used for diagnosing fetal anomalies because the people conducting them don’t have that training. A growing number also offer unproven abortion-pill reversal treatments.

    Because most of the centers don’t accept insurance, the federal law restricting release of medical information doesn’t apply to them, though some say they follow it anyway. They also don’t have to follow standards required by Medicaid or private insurers, though those offering certain services generally must have medical directors who comply with state licensing requirements.

    “There are really bedrock questions,” said Jennifer McKenna, a senior adviser for Reproductive Health and Freedom Watch, a project funded by liberal policy organizations that researches the pregnancy centers, “about whether this industry has the clinical infrastructure to provide the medical services it’s currently advertising.”

    Perhaps best known as “crisis pregnancy centers,” these mostly privately funded and religiously affiliated centers were expanding services such as diaper banks ahead of the Supreme Court’s 2022 Dobbs v. Jackson Women’s Health Organization ruling.

    As abortion bans kicked in, the centers expanded medical, educational and other programs, said Moira Gaul, a scholar at the Charlotte Lozier Institute, the research arm of SBA Pro-Life America. “They are prepared to serve their communities for the long-term,” she said in a statement.

    In Sacramento, California, for instance, Alternatives Pregnancy Center in the last two years has added family practice doctors, a radiologist and a specialist in high-risk pregnancies, along with nurses and medical assistants. Alternatives — an affiliate of Heartbeat International, one of the largest associations of pregnancy centers in the U.S — is some patients’ only health provider.

    When The Associated Press asked to interview a patient who had received only non-pregnancy services, the clinic provided Jessica Rose, a 31-year-old woman who took the rare step of detransitioning after spending seven years living as a man, during which she received hormone therapy and a double mastectomy.

    For the last two years, she’s received all medical care at Alternatives, which has an OB-GYN who specializes in hormone therapy. Few, if any, pregnancy centers advertise that they provide help with detransitioning. Alternatives has treated four similar patients over the past year, though that’s not its main mission, director Heidi Matzke said.

    “APC provided me a space that aligned with my beliefs as well as seeing me as a woman,” Rose said. She said other clinics “were trying to make me think that detransitioning wasn’t what I wanted to do.”

    As of 2024, more than 2,600 anti-abortion pregnancy centers operated in the U.S., up 87 from 2023, according to the Crisis Pregnancy Center Map, a project led by University of Georgia public health researchers who are concerned about aspects of the centers. According to the Guttmacher Institute, 765 clinics offered abortions last year, down more than 40 from 2023.

    Over the years, pregnancy centers have received a boost in taxpayer funds. Nearly 20 states, largely Republican-led, now funnel millions of public dollars to these organizations. Texas alone sent $70 million to pregnancy centers this fiscal year, while Florida dedicated more than $29 million for its “Pregnancy Support Services Program”

    This boost in resources is unfolding as Republicans have barred Planned Parenthood from receiving Medicaid funds under the tax and spending law President Donald Trump signed in July. While federal law already blocked the use of taxpayer funds for most abortions, Medicaid reimbursements for other health services were a big part of Planned Parenthood’s revenue.

    Planned Parenthood said its affiliates could be forced to close up to 200 clinics.

    Some already had closed or reorganized. They have cut abortion in Wisconsin and eliminated Medicaid services in Arizona. An independent group of clinics in Maine stopped primary care for the same reason. The uncertainty is compounded by pending Medicaid changes expected to result in more uninsured Americans.

    Some abortion-rights advocates worry that will mean more health care deserts where the pregnancy centers are the only option for more women.

    Kaitlyn Joshua, a founder of abortion-rights group Abortion in America, lives in Louisiana, where Planned Parenthood closed its clinics in September.

    She’s concerned that women seeking health services at pregnancy centers as a result of those closures won’t get what they need. “Those centers should be regulated. They should be providing information which is accurate,” she said, “rather than just getting a sermon that they didn’t ask for.”

    Thomas Glessner, founder and president of the National Institute of Family and Life Advocates, a network of 1,800 centers, said the centers do have government oversight through their medical directors. “Their criticism,” he said, “comes from a political agenda.”

    In recent years, five Democratic state attorneys general have issued warnings that the centers, which advertise to people seeking abortions, don’t provide them and don’t refer patients to clinics that do. And the Supreme Court has agreed to consider whether a state investigation of an organization that runs centers in New Jersey stifles its free speech.

    Choices Medical Services in Joplin, Missouri, where the Planned Parenthood clinic closed last year, moved from focusing solely on discouraging abortion to a broader sexual health mission about 20 years ago when it began offering STI treatment, said its executive director, Karolyn Schrage.

    The center, funded by donors, works with law enforcement in places where authorities may find pregnant adults, according to Arkansas State Police and Schrage.

    She estimates that more than two-thirds of its work isn’t related to pregnancy.

    Hayley Kelly first encountered Choices volunteers in 2019 at a regular weekly dinner they brought to dancers at the strip club where she worked. Over the years, she went to the center for STI testing. Then in 2023, when she was uninsured and struggling with drugs, she wanted to confirm a pregnancy.

    She anticipated the staff wouldn’t like that she was leaning toward an abortion, but she says they just answered questions. She ended up having that baby and, later, another.

    “It’s amazing place,” Kelly said. “I tell everybody I know, ‘You can go there.’”

    The center, like others, does not provide contraceptives — standard offerings at sexual health clinics that experts say are best practices for public health.

    “Our focus is on sexual risk elimination,” Schrage said, “not just reduction.”

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  • Social Security recipients get a 2.8% cost-of-living boost in 2026

    WASHINGTON — The Social Security cost-of-living increase will go up by 2.8% in 2026, which translates to an average increase of more than $56 for retirees every month, agency officials said Friday.

    The benefits increase for nearly 71 million Social Security recipients will go into effect beginning in January. And increased payments to nearly 7.5 million people receiving Supplemental Security Income will begin on Dec. 31.

    Friday’s announcement was meant to be made last week but was delayed because of the federal government shutdown.

    The cost-of-living adjustment, or COLA, for retirees and disabled beneficiaries is financed by payroll taxes collected from workers and their employers, up to a certain annual salary, which is slated to increase to $184,500 in 2026, from $176,100 in 2025.

    Recipients received a 2.5% cost-of-living boost in 2025 and a 3.2% increase in their benefits in 2024, after a historically large 8.7% benefit increase in 2023, brought on by record 40-year-high inflation.

    The smaller increase for 2026 reflects moderating inflation.

    Social Security Administration Commissioner Frank Bisignano said in a statement Friday that the annual cost of living adjustment “is one way we are working to make sure benefits reflect today’s economic realities and continue to provide a foundation of security.”

    Emerson Sprick, the Bipartisan Policy Center’s director of retirement and labor policy, said in a statement that cost-of-living increases “can’t solve all the financial challenges households face or all the shortcomings of the program.”

    The latest COLA announcement comes as the Social Security Administration has been navigating almost a year of turmoil, including the termination of thousands of workers as part of the Trump administration’s efforts to shrink the size of the federal workforce. Trump administration officials have also made statements they later walked back that raised concerns about the future of the program.

    Treasury Secretary Scott Bessent said in July that the Republican administration was committed to protecting Social Security hours after he said in an interview that a new children’s savings program President Donald Trump signed into law “is a back door for privatizing Social Security.”

    And in September, Bisignano had to walk back comments that the agency is considering raising the retirement age to shore up Social Security. “Raising the retirement age is not under consideration at this time by the Administration,” Bisignano said at the time in an e-mailed statement to The Associated Press.

    “I think everything’s being considered, will be considered,” Bisignano said in the statement when asked whether raising the retirement age was a possibility to maintain the old age program’s solvency.

    In addition, the Social Security Administration faces a looming bankruptcy date if it is not addressed by Congress. The June 2025 Social Security and Medicare trustees’ report states that Social Security’s trust funds, which cover old age and disability recipients, will be unable to pay full benefits beginning in 2034. Then, Social Security would only be able to pay 81% of benefits.

    Social Security benefits were last reformed roughly 40 years ago, when the federal government raised the eligibility age for the program from 65 to 67.

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    Follow the AP’s coverage of the U.S. Social Security Administration at https://apnews.com/hub/us-social-security-administration.

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  • California union proposes taxing billionaires to offset Medicaid cuts

    SACRAMENTO, Calif. — SACRAMENTO, Calif. (AP) — A major union announced a proposal Thursday to impose a one-time 5% tax on billionaires in California to address federal funding cuts to health care for low-income people.

    Proponents, including the Service Employees International Union, hope to place the statewide measure before voters next year. The tax would be on the net worth of California’s richest residents. A small portion of the money would also help fund K-12 education since the federal government has threatened to withhold grant money from public schools.

    Backers of the measure sent a request to Attorney General Rob Bonta this week to get approval to start collecting signatures. The proposal would have to receive more than 870,000 signatures by next spring to qualify for the ballot in November 2026. If it qualifies, it’s not guaranteed to pass. Democratic Gov. Gavin Newsom, for example, has opposed tax hikes in the past, including those specifically targeting the rich.

    Proponents of the initiative said it was critical to backfill cuts to Medicaid because lives are at stake.

    “If we do not do this, millions of people are going to lose health care, an untold number of people will go without treatment and there will be tragedy after tragedy,” said Dave Regan, president of SEIU-United Healthcare Workers West.

    Billionaires would have to pay for tax year 2026, and the money could start being appropriated in 2027. The tax would generate $100 billion in revenue for the state, backers say. The initiative says it’s “designed to make the State tax system more equitable.”

    The big tax and spending cuts law President Donald Trump signed earlier this year will cut more than $1 trillion over a decade from Medicaid and federal food assistance.

    The California Budget and Policy Center, a think tank in Sacramento, estimated the state could lose $30 billion in federal funding a year for Medicaid, which would result in up to 3.4 million people losing their coverage.

    Newsom said earlier this month that people enrolled in Covered California, the state’s health insurance marketplace, could see their monthly health care bills nearly double next year as a result of the spending cuts law.

    “California has led the nation in expanding access to affordable health care, but Donald Trump is ripping it away,” he said.

    Proponents of the proposed ballot initiative say billionaires have an obligation to do their part.

    “We hope that some and perhaps hopefully a large number of billionaires will recognize that it’s important in the state where they’ve grown their fortune that they have a responsibility to society to preserve the future of California,” said Emmanuel Saez, a professor of economics at the University of California, Berkeley.

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  • FACT FOCUS: Democrats did not shut down the government to give health care to ‘illegal immigrants’

    President Donald Trump and other high-ranking Republicans claim Democrats forced the government shutdown fight because they want to give free health care to immigrants in the U.S. illegally.

    Democrats are trying to extend tax credits that make health insurance premiums more affordable on marketplaces established by the Affordable Care Act, commonly known as Obamacare, and reverse Medicaid cuts in Trump’s big bill passed this summer. But immigrants who entered the country illegally are not eligible for either program.

    Here’s a closer look at the facts:

    CLAIM: Democrats shut down the government because they want to give free health care to immigrants who entered the U.S. illegally.

    THE FACTS: This is false. Democrats say they are pushing for the inclusion of key health care provisions in the next congressional spending package. In particular, they are seeking an extension of tax credits that millions of Americans use to buy insurance on the Affordable Care Act exchange and a reversal of Medicaid cuts made in the bill Trump signed into law in July. However, immigrants in the U.S. illegally are not eligible for any federal health care programs, including insurance provided through the Affordable Care Act and Medicaid. Hospitals do receive Medicaid reimbursements — which would be reduced under Trump’s bill — for emergency care that they are obligated to provide to people who meet other Medicaid eligibility requirements but do not have an eligible immigration status, according to KFF, a nonprofit health policy research, polling and news organization. This spending accounted for less than 1% of total Medicaid spending between fiscal years 2017 and 2023.

    Sabrina Corlette, founder and co-director of Georgetown University’s Center on Health Insurance Reforms, called the Republicans’ claims “a flat-out lie.”

    “The law is very clear,” Corlette said.

    Speaking in the Oval Office on Tuesday about a deal with Pfizer to lower drug prices, Trump predicted the shutdown and made the false claim: ”We’ll probably have a shutdown because one of the things they want to do is they want to give incredible Medicare, Cadillac, the Cadillac Medicare, to illegal immigrants.” He added later that “they want to have illegal aliens come into our country and get massive health care at the cost to everybody else.”

    Asked by a reporter to clarify what his comments referred to, Trump said “when an illegal person comes, a person who came into our country illegally, therefore breaking the law,” adding that “we just as a country cannot afford to take care of millions of people who have broken the law coming in.”

    Other Republicans, including Vice President JD Vance and House Speaker Mike Johnson, have made similar claims.

    The Senate’s Democratic leader, Sen. Chuck Schumer, rebutted these allegations, calling them “a lie, plain and simple.”

    Immigrants in the U.S. illegally are not eligible for insurance bought on the Affordable Care Act exchange or for Medicaid. To qualify for the former, an enrollee must live in the U.S., be a U.S. citizen or have another lawful status and not be incarcerated. A Medicaid enrollee must meet certain financial requirements, be a resident of the state in which Medicaid is being received and be a U.S. citizen or have a qualifying lawful status.

    Health care premiums for millions of Americans could skyrocket if Congress fails to extend tax credits that many people use to buy insurance through Affordable Care Act marketplaces. Those subsidies were put in place during the COVID-19 pandemic but are set to expire.

    Among the Medicaid cuts Democrats are seeking to reverse is a reduction to reimbursements hospitals receive when they perform emergency care they are legally mandated to provide on people who would qualify for Medicaid if not for their immigration status. This would affect the 40 states, plus Washington, D.C., that have adopted a Medicaid expansion created by the Affordable Care Act.

    The law Trump signed would also restrict the eligibility of lawfully present immigrants such as refugees and asylees for insurance through the Affordable Care Act, Medicaid and Medicare.

    Some states use their own money, not federal funds, to provide health care to immigrants who don’t have lawful status. An earlier version of Trump’s tax breaks and spending cuts bill tried to curb these programs, but the provisions did not make it into the final version.

    “It’s a compelling talking point to say that Democrats want to provide health care to undocumented immigrants, but it’s just not true in terms of the cuts they’re trying to reverse,” said Larry Levitt, executive vice president for health policy at KFF.

    ___

    This story was first published on Oct. 1, 2025. It was published again on Oct. 3, 2025, to correct that to qualify for insurance bought on the Affordable Care Act exchange, not for Medicaid, an enrollee must live in the U.S., be a U.S. citizen or have another lawful status and not be incarcerated.

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    Find AP Fact Checks here: https://apnews.com/APFactCheck.

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  • Energy Department offers $1.6 billion loan guarantee to upgrade transmission lines across Midwest

    WASHINGTON — WASHINGTON (AP) — The Department of Energy said Thursday it has finalized a $1.6 billion loan guarantee to a subsidiary of one of the nation’s largest power companies to upgrade nearly 5,000 miles of transmission lines across five states, mostly in the Midwest, for largely fossil fuel-run energy.

    AEP Transmission will upgrade power lines in Indiana, Michigan, Ohio, Oklahoma and West Virginia, primarily to enhance enhance grid reliability and capacity, the Energy Department said. The project by AEP Transmission, a subsidiary of Ohio-based American Electric Power, is meant to help meet surging electricity demand from data centers and artificial intelligence.

    AEP primarily produces electricity from coal, natural gas and nuclear power, along with renewable resources such as wind and hydroelectric power.

    Thursday’s announcement deepens the Trump administration’s commitment to traditional, polluting energy sources even as it works to discourage the U.S. from clean energy use.

    The move comes as the Trump administration has moved to cancel $7.6 billion in grants that supported hundreds of clean energy projects in 16 states, all of which voted for Democrat Kamala Harris in last year’s presidential election. A total of 223 projects were terminated after a review determined they did not adequately advance the nation’s energy needs or were not economically viable, the Energy Department said.

    The cancellations include up to $1.2 billion for California’s hydrogen hub aimed at producing clean-burning hydrogen fuels to power ships and heavy-duty trucks. A hydrogen project costing up to $1 billion in the Pacific Northwest also was cancelled.

    The loan guarantee finalized Thursday is the first offered by the Trump administration under the recently renamed Energy Dominance Financing program created by the massive tax-and-spending law approved this summer by congressional Republicans and signed by President Donald Trump. Electric utilities that receive loans through the program must provide assurances to the government that financial benefits from the financing will be passed on to customers, the Energy Department said.

    The project and others being considered will help ensure that Americans “will have access to affordable, reliable and secure energy for decades to come,” Energy Secretary Chris Wright said in a statement.

    “The president has been clear: America must reverse course from the energy subtraction agenda of past administrations and strengthen our electrical grid,” Wright said, adding that modernizing the grid and expanding transmission capacity “will help position the United States to win the AI race and grow our manufacturing base.”

    The upgrades supported by the federal financing will replace existing transmission lines in existing rights-of-way with new lines capable of carrying more energy, the power company said.

    More than 2,000 miles of transmission lines in Ohio serving 1.5 million people will be replaced, along with more than 1,400 miles in Indiana and Michigan serving 600,000 customers, the company said. An additional 1,400 miles in Oklahoma, serving about 1.2 million people and 26 miles in West Virginia, serving 460,000 people, will be replaced.

    The projects will create about 1,100 construction jobs, the company said.

    The loan guarantee will save customers money and improve reliability while supporting economic growth in the five states, said Bill Fehrman, AEP’s chairman, president and chief executive officer. “The funds we will save through this program enable us to make additional investments to enhance service for our customers,” he added.

    Wright, in a conference call with reporters, distinguished the AEP loan guarantee from a $4.9 billion federal loan guarantee the department cancelled in July. That money would have boosted the planned Grain Belt Express, a new high-voltage transmission line set to deliver solar and wind-generated electricity from the Midwest to eastern states.

    The Energy Department said at the time it was “not critical for the federal government to have a role” in the first phase of the $11 billion project planned by Chicago-based Invenergy. The department also questioned whether the project could meet strict financial conditions required, a claim Wright repeated Thursday.

    “Ultimately that is a commercial enterprise that needs private developers,” Wright said. The company has indicated the Grain Belt project will go forward.

    Trump and Wright have repeatedly derided wind and solar energy as unreliable and opposed efforts to combat climate change by moving away from fossil fuels. Wright said the Grain Belt Express loan was among billions of dollars worth of commitments “rushed out the doors” by former President Joe Biden’s administration after the 2024 election.

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