A section of northbound I-95 in Philadelphia has collapsed after a tanker truck caught fire underneath the highway, Philadelphia officials said Sunday morning.
“We did have a collapse of 95 on the northbound side, and the southbound side is compromised by heavy fire,” Derek Bowmer, battalion chief for the Philadelphia Fire Department, said during a news conference Sunday morning. “It looked like we had a lot of heat and heavy fire underneath the underpass.”
Firefighters are still battling the blaze, Bowmer said.
Explosions around the highway collapse were caused by “runoff of maybe some fuel or gas lines that could have been compromised by the accident,” said Bowmer.
“We have fire coming out of those manholes,” Bowmer said.
Photos and videos from the scene show huge plumes of smoke billowing from the interstate.
The mayor’s office told CNN a large tanker truck fire caused the collapse. The highway is closed in both directions around the area and the fire is under control, according to Sarah Peterson, the office’s communications director.
Dominick Mireles, director of Philadelphia’s Office of Emergency Management, said officials would be dealing with the collapse and the fire for a long time.
“Today’s going to be a long day. And obviously with 95 northbound gone, and southbound questionable, it’s going to be even longer than that,” Mireles said. “The roadway’s gone.”
Tumar Alexander, managing director for the City of Philadelphia, said the incident will “be a significant impact to this community for a while.”
“95 will be impacted for a long time,” Alexander said during the news conference.
The fire is under investigation by the fire marshal and other partners, Bowmer added during the news conference.
The Philadelphia Office of Emergency Management urged travelers to avoid the area and seek alternate routes in a Sunday morning tweet.
“I was just briefed by @PEMAHQ, @PennDOTNews, and @PAStatePolice on the I-95 fire and collapse in Philadelphia. State Police and PEMA are on the scene assisting local first responders and @PennDOTSec and his team are en route to assess the situation and address traffic needs,” said the governor on his verified Twitter account.
“@LTGDavis and I are closely coordinating with partners in Philadelphia, New Jersey, and the federal government and we will share more information as we have it. For now, please avoid the area and follow the direction of the first responders on the scene.”
Editor’s note: The southern Ukrainian city of Melitopol has long been known for its sweet delights. The name “Melitopol” means “the Honey City” in Ukrainian and the city’s official logo features a cherry, a nod to the deep red fruit the region is famous for.
But life in Melitopol is anything but sweet. The city was captured by Russian troops shortly after Moscow launched its full-scale invasion of Ukraine in February last year. Pro-Ukrainian partisans have remained active in the city, orchestrating several attacks against the pro-Russian administration installed in the place of its elected leaders. The Zaporizhzhia region in which the city lies is partially occupied by Russia and was illegally annexed last September.
Below is the account of a Melitopol resident in her early 30s who has refused to flee the city and is living under Russian occupation. CNN is not naming her because of concerns for her safety. Her testimony was translated from Ukrainian and edited for brevity.
There is terror in Melitopol. But it’s quiet, you don’t see it in the streets.
For partisans, the situation here is terrible. For those of us who rejected Russian passports and are now known as “the unreliable,” the situation is terrible. But if you go to the market, you wouldn’t think that anything is going on.
The Russians are trying to force everyone here to get Russian passports. It’s easier to manipulate people when they have Russian citizenship. Not getting the passports makes our life very difficult. They are refusing to give us access to hospitals and so on. We are a family of farmers and we are losing our land because we don’t have any Russian documents.
I’m afraid I will eventually have to get it. But we are delaying this moment. One relative went to the office and the queues were huge because everyone was intimidated into getting a passport. The process has sped up. Previously, you had to wait a month or two, but now they can print a passport in a week.
Everyone was given cash welfare payments until February, but starting in March, only people with Russian passports get them. That’s why many pensioners started getting passports now because there was no need for it before. Disabled people, people on low incomes, and those who wanted to use free healthcare took the passports immediately after the Russians started offering them, because they didn’t want to lose the benefits.
All in all, a large percentage of the population already has Russian passports. If you don’t, you’re a black sheep, and you can be subject to a frisking.
Here in Melitopol, searches are usually conducted after shelling and after guerrilla attacks on pro-Russian collaborators. My grandmother’s house was searched because a Russian soldier deserted when he was in the village. They searched the houses in the village, trying to find him.
The people who remained in Melitopol can be divided into several categories. There are those who are basically satisfied with the current pro-Russian government. There are those who don’t care and who would support whoever gives them more money in cash payments.
Those who stayed mostly support the pro-Russian government. They are convinced that it is here to stay.
Obviously, there are also Ukrainian patriots, those of us waiting for Ukraine to win this war. We whisper to each other in the market. You can tell that someone is supporting Ukraine at the market when you ask for high quality produce. Vendors start cursing Russia because they now have to choose between selling bad products and worse products.
There are still a lot of partisans, God bless them, but we are in the minority. Most of the Ukrainian patriots have left, especially those who actively participated in rallies, because there was a direct threat to their lives.
Our neighbor turned us in for supporting Ukraine, but we are not being touched, at least not yet. My neighbor works for the new government and she knows that we actively opposed Russia during the first phase of the war.
I think we will be issued some kind of document that they give to “the unreliable” which says we have refused the passports. This means nothing except showing that we refused to take Russian passports. It’s a temporary certificate of non-citizens, but you either take this piece of paper or you have to leave Melitopol. So, we are going to take it.
Until April, it was possible to move freely throughout the occupied zone without documents. Now you need a Russian passport or the non-citizen document, but they keep issuing warnings and saying that you need to get a Russian passport by June or you will not be allowed to leave.
People here are encouraged to send their children to summer camps in Crimea, like they were last year. Some parents on our street voluntarily sent their children to Crimea for a month and the children came back. But our neighbors, who have since left for Germany, did not want to send their son to a Russian school or to a camp, and it was okay. Their son stayed at home all year, studying online at a Ukrainian school. Children are not taken away by force here. You have to understand that parents send them there voluntarily.
It’s true that the occupiers are worried about the counteroffensive. The mood in the city has changed dramatically over the past month, from “Melitopol is forever with Russia” to thinking where and how they will build defense lines.
Of course, this is just what the ordinary soldiers in the city are saying, but there is no longer that victorious mood. I feel that something is going to happen here soon. Ukrainian hryvnias are being bought up in the market, and farmers are refusing to sell their products, because they are waiting to give it to Ukraine. And all the neighbors who are in favor of Russia have stopped communicating with us, because they are no longer sure that Russia will stay here forever and are afraid to talk.
There are more or less no problems with getting food. There is no variety, but there are no shortages either. The standards and packaging have completely changed since the invasion started. Butter that is made at the same factory tastes so bad now that we don’t know what to do to mask the taste.
Everything that is imported from Russia contains palm oil. That’s not an exaggeration, the ingredient list of a candy lists palm oil three times. It’s in everything. Sausages, cheese, candy, cookies, butter.
But the biggest problem is with medicines and household goods, as well as baby food. Russia doesn’t have good quality medicines and there is no choice. You go to a pharmacy and they give you one option, take it or leave it. People inquire about medicines for 10 minutes and in the end, they only have iodine. A woman in front of me was trying to buy Nestlé baby food, but the price was out of this world. She ended up buying some Russian-made equivalent.
My mother and grandmother have diabetes. The Russian medicines have the same active ingredient but they affect them in completely different ways. They have different dosages and excipients and my mother and grandmother started feeling much worse when they began taking them. We received some Ukrainian medicines from Ukraine through Crimea, enough for a month and a half.
The cynicism of doctors and pharmacists here is overwhelming. No one says anything directly. We call the war a “situation” here. So, they just answer: “Well, this is the situation, if you need it, go to Ukraine or Europe.” When I told the doctor that I needed specific medication, I was told to go to the city of Zaporizhzhia to buy it. And just so you understand, to go to Zaporizhzhia, you have to go via Moscow. That’s the only way.
In Russia, they don’t have the same standards and regulations for products. Nothing like that. Russian soaps, shampoos, and toothpastes are of terrible quality. Belarusian ones are a little better, and the best option for us here is Turkish shampoo. There are a lot of Chinese and Turkish products on the market. Russian and Chinese products are of the worst quality, while Belarusian and Turkish products are more or less okay, but more expensive.
The problem is that only the military here have a lot of money, and often they buy everything decent. The rumours that Russians themselves do not want to buy Russian products are true. Until September, Ukrainian products were smuggled to Melitopol and the Russian military bought everything themselves. Soldiers stood in line in front of me and asked for Ukrainian socks and soap. Now there are no Ukrainian goods anymore.
Everyone is pretending to live a civilian life. There’s no talk of evacuation. People are used to the explosions and to the fact that from time to time there are burnt-out cars of pro-Russian collaborators on the main street. People are used to the fact that Russian troops and authorities can come to your house and kick you out.
People have gotten used to everything over the year.
A New York firefighter drowned while attempting to save his teenage daughter who had been swept away in rough surf on the Jersey Shore on Friday, authorities said.
First responders were able to rescue the girl and her father was transported to a local hospital where he was later pronounced dead, according to first responders. He was identified as New York Fire Department firefighter Mark Batista, according to the department.
“We are heartbroken to learn about the death of Firefighter Mark Batista, who died Friday while swimming at the Jersey Shore,” New York Fire Department spokesperson Amanda Farinacci Gonzalez said in a statement.
“Firefighter Batista was a dedicated public servant who spent fifteen years serving in the FDNY, as both an EMT and a firefighter. We join his family in mourning his tragic passing.”
At around 8:30 a.m. Friday, rescuers from the Area Network of Shore Water Emergency Responders Team responded to reports that two swimmers were in distress at the Sylvania Avenue Beach in Avon-by-the-Sea, according to a Facebook post by the interlocal organization. Rescuers were able to quickly find and rescue the teenager in the rough waters but were unable to locate the man, the post said.
The rescue team launched an hourlong search effort involving rescue swimmers, divers, jet skis boats, and a drone to find the father, according to the Facebook post. At around 10 am, a US Coast Guard helicopter identified a “possible location” for the father and rescue swimmers located him and removed him from the water.
First responders attempted to administer “lifesaving efforts” to the 39-year-old Teaneck man, who was transported to Jersey Shore University Medical Center where he was pronounced dead, according to the Avon-by-the-Sea Police Department.
“In the wake of this morning’s unfortunate incident in Avon where a man drowned while trying to rescue his daughter after she was caught in rough surf, we once again caution all to please NOT go in the water when there are no lifeguards on duty,” the sheriff’s office wrote.
The official cause of death has not yet been released. The Avon-by-the-Sea Police Department is investigating the incident.
President Joe Biden’s administration is set to allow New York City to move forward with a landmark program that will toll vehicles entering Lower Manhattan, after a public review period ends Monday.
In practice it works like any other toll, but because it specifically charges people to drive in the traffic-choked area below 60th street in Manhattan, it would be the first program of its kind in the United States.
Proposals range from charging vehicles $9 to $23 during peak hours, and it’s set to go into effect next spring.
The plan had been delayed for years, but it cleared a milestone last month when the Federal Highway Administration signed off on the release of an environmental assessment. The public has until Monday to review the report, and the federal government is widely expected to approve it shortly after.
From there, the New York Metropolitan Transportation Authority (MTA) can finalize toll rates, as well as discounts and exemptions for certain drivers.
New York City is still clawing out of from the devastating impact of the Covid-19 pandemic. Congestion pricing advocates say it’s a crucial piece of the city’s recovery and a way to re-imagine the city for the future.
“This program is critical to New York City’s long-term success,” New York Gov. Kathy Hochul said last month.
The plan would also mark the culmination of more than a half-century of efforts to implement congestion pricing in New York City. Despite support from several New York City mayors and state governors, car and truck owners in outer boroughs and the suburbs helped defeat proposals.
In 2007 Mayor Michael Bloomberg called congestion “the elephant in the room” when proposing a toll program, which state lawmakers killed. A decade later, Gov. Andrew Cuomo — who had long resisted congestion pricing — said it was “an idea whose time has come” and declared a subway state of emergency after increased delays and a derailment that injured dozens. Two years later, the state gave the MTA approval to design a congestion pricing program.
Ultimately, it was the need to improve New York City’s public transit that became the rallying cry for congestion pricing.
Each day 700,000 cars, taxis and trucks pour into Lower Manhattan, one of the busiest areas in the world with some of the worst gridlock in the United States.
Car travel at just 7.1 mph on average in the congestion price zone, and it’s a downward trend. Public bus speeds have also declined 28% since 2010. New Yorkers lose 117 hours on average each year sitting in traffic, costing them nearly $2,000 in lost productivity and other costs, according to one estimate.
The toll is designed to reduce the number of vehicles entering the congestion zone by at least 10% every day and slash the number of miles cars travel within the zone by 5%.
Congestion comes with physical and societal costs, too: more accidents, carbon emissions and pollution happen as belching, honking cars take up space that could be optimized for pedestrians and outdoor dining.
Proponents also note it will improve public transit, an essential part of New York life. About 75% of trips downtown are via public transit.
But public-transit ridership is 35% to 45% lower compared to pre-pandemic levels. The MTA says congestion fees will generate a critical source of revenue to fund $15 billion in future investments to modernize the city’s 100-year-old public transit system.
The improvements, like new subway cars and electric signals, are crucial to draw new riders and improve speed and accessibility — especially for low-income and minority residents, who are least likely to own cars, say plan advocates.
New York City is “dependent on public transit,” said Kate Slevin, the executive vice president of the Regional Plan Association, an urban planning and policy group. “We’re relying on that revenue to pay for needed upgrades and investments that ensure reliable, good transit service.”
Improving public transportation is also key to New York City’s post-pandemic economic recovery:If commutes to work are too unreliable, people are less likely to visit the office and shop at stores around their workplaces. Congestion charge advocates hope the program will create more space for amenities like wider sidewalks, bike lanes, plazas, benches, trees and public bathrooms.
“100 years ago we decided the automobile was the way to go, so we narrowed sidewalks and built highways,” said Sam Schwartz, former New York City traffic commissioner and founder of an eponymous consulting firm. “But the future of New York City is that the pedestrian should be king and queen. Everything should be subservient to the pedestrian.”
While no other US city has yet implemented congestion pricing, Stockholm, London and Singapore have had it for years.
These cities have reported benefits like decreased carbon dioxide pollution, higher average speeds, and congestion reduction.
Just one year after London added its charge in 2003, traffic congestion dropped by 30% and average speeds increased by the same percentage. In Stockholm, one study found the rate of children’s acute asthma visits to the doctor fell by about 50% compared to rates before the program launched in 2007.
Some groups are fiercely opposed to congestion charges in New York City, however. Taxi and ride-share drivers, largely a low-income and immigrant workforce, fear it will hurt drivers already struggling to make ends meet. The MTA said congestion pricing could reduce demand for taxis by up to 17% in the zone.
Commuters and legislators from New York City’s outer boroughs and New Jersey say the program hurts drivers who have no viable way to reach downtown Manhattan other than by car, and that this would disproportionately impact low-income drivers. (But out of a region of 28 million people, just an estimated 16,100 low-income people commute to work via car in Lower Manhattan, according to the MTA.)
Other critics say it could divert more traffic and pollution from diesel trucks in Manhattan into lower-income areas like the Bronx, which has the highest rates of asthma hospitalization in the city.
The MTA and other agencies have plans to mitigate many of these adverse effects, however.
Taxis and for-hire vehicles will be tolled only once a day. Drivers who make less than $50,000 a year or are enrolled in certain government aid programs will get 25% discounts after their first 10 trips every month. Trucks and other vehicles will get 50% discounts during overnight hours.
Additionally, the MTA pledged $10 million to install air filtration units in schools near highways, $20 million for a program to fight asthma, and other investments to improve air quality and the enviornment in areas where more traffic could be diverted.
The stakes of New York City’s program are high, and leaders in other cities are watching the results closely.
If successful, congestion pricing could be a model for other US cities, which are trying to recover from the pandemic and face similar challenges of climate change and aging public infrastructure.
“It’s good to see New York City’s program is moving forward,” said the Los Angeles Times Editorial Board last month. “Los Angeles should watch, learn and go next.”
As Trump is indicted a second time, President Joe Biden is planning to do the same thing – an intentional demonstration of calm and normalcy amid the continuing chaos of his predecessor.
He’ll probably get asked about the indictment throughout the day as he leaves the White House to visit sites in North Carolina. But there is little to suggest he’ll weigh in on the substance of the case.
That’s because he and his aides believe doing so would only lend grist to Trump’s claim that he’s the victim of a political “witch hunt.” Biden doesn’t want to be baited into providing Trump any fuel for his allegations, people familiar with his thinking said. And he remains firmly of the belief that sitting presidents should not comment on legal matters.
Those dynamics – already in play when Trump was indicted in New York – are only amplified now that former president has been handed a federal indictment by Biden’s Justice Department. It’s a situation Biden and his team know they must handle carefully.
“You’ll notice, I have never once – not one single time – suggested to the Justice Department what they should do or not do on whether to bring any charges or not bring any charges. I’m honest,” Biden said at a news conference Thursday.
Biden and first lady Dr. Jill Biden are set to travel to North Carolina on Friday to promote his job training agenda and sign an executive order meant to help military spouses remain in the workforce. The official trip is the type of activity Biden is planning a lot of over the coming year, as he works to sell his accomplishments to a skeptical electorate.
Aides know Biden’s dutiful, there-and-back stops at community colleges, union halls and construction sites aren’t likely to generate the same level of headlines as those about Trump’s legal peril.
Yet perhaps more than the accomplishments themselves, Biden is hoping to project an air of competence and authority as a contrast to the chaos that has accompanied Trump for years. That comparison could hardly be starker this week.
There is another additional goal with Friday’s trip – kicking off a push to flip a state that has gone Republican in the last three presidential elections.
The last time Biden traveled to North Carolina, Rep. Wiley Nickel offered a bullish outlook on his state’s political potential during the flight to Durham on Air Force One.
“I talked to him a number of times about it. We have been pushing with folks from all over on why North Carolina is a must win and why it’s a state that’s set to have a great outcome in November,” the Democrat told CNN this week.
The pitch may have worked. The trip is one of Biden’s first trips outside Washington to sell his agenda since he announced his bid for reelection in April.
He won’t be the only 2024 contender in the state. A two-hour drive west, Florida Gov. Ron DeSantis plans to speak at the North Carolina Republican Party convention in Greensboro. Former Vice President Mike Pence and Trump are also expected to address the gathering over the weekend.
The convergence of candidates in the Tar Heel State is hardly a coincidence. After narrowly losing there to Trump in 2020, Biden’s campaign said in a strategy memo this spring the state is among their top targets next year as they look to expand the electoral map.
On the Republican side, North Carolina’s 16 electoral votes would be essential for a pathway back to the White House. The last Democratic presidential candidate win there was Barack Obama in 2008.
Yet the 1.3% margin Trump won by in 2020 was the smallest of any state, a demonstration – at least in Biden’s mind – that it is well within grasp in 2024. The state’s demographics are becoming more urban and diverse. Biden’s campaign has already purchased television ad time there.
On Friday, Biden’s stops are considered official business, not campaign-related. But they reflect his team’s strategy of working to promote his accomplishments in places up for grabs in next year’s election.
He plans to visit a community college in Rocky Mount to tout job training programs before heading to Fort Liberty – recently renamed from Fort Bragg, removing the moniker of a Confederate general – to sign an executive order meant to help military spouses remain in the workforce.
“We’re asking agencies to make it easier for spouses employed by the federal government to take administrative leave, telework and move offices. We’re creating resources to support entrepreneurs and the executive order helps agencies and companies retain military spouses through telework or when they move abroad,” said first lady Dr. Jill Biden, who’s accompanying her husband in North Carolina on Friday.
Both stops will put a spotlight on the types of agenda items the president plans to use as the basis for his reelection argument next year, centering on job creation and the middle class. Biden has focused heavily on job training for those without college degrees as part of his effort to revive American manufacturing.
Despite a strong job market and rising wages, however, Biden has struggled to convince Americans of his economic agenda, according to polls. The three Republican candidates speaking in Greensboro this weekend will undoubtedly hammer the president on issues like inflation.
Events like the stops in Rocky Mount and Fort Liberty on Friday are meant to explain to Americans what Biden has done so far, an approach he’s expected to continue pursuing in the coming year as Republicans engage in a primary battle.
Nash Community College, where the president is visiting, is part of a coalition of historically black colleges that has received around $24 million from Biden’s American Rescue Plan for training on clean energy careers, according to the White House.
The executive order he’ll sign later at Fort Liberty is meant to allow military spouses to remain in the workforce through greater employer flexibility. The issue has been a main agenda item for the first lady.
It wasn’t clear whether Biden would address the renaming of the base, which became official last week. Many Republicans opposed stripping the names of Confederate generals from bases, an effort that began under Biden. Trump has likened the moves to erasing American history.
Biden’s aides have acknowledged that simply selling the president’s agenda isn’t likely to be enough to get him reelected. They have also worked to highlight what they say are extreme Republican positions on issues like education and abortion.
In this, too, North Carolina also offers a backdrop for areas Democrats believe they have an upper hand. North Carolina Republicans passed a restrictive new law last month that would outlaw most abortions after 12 weeks, using their legislative supermajority to override a veto from Democratic Gov. Roy Cooper.
There are already plans by Biden’s campaign to focus on the ban as the campaign works to make inroads in the state.
Nickel said Republicans’ abortion platform was the reason he was elected last year.
“We focused almost exclusively two things. Rejecting far-right extremism and standing up for a woman’s right to choose. And that’s what folks understood our campaign was about,” he said.
For Biden, whose time as a candidate will be carefully managed as he works to confront still-significant headwinds, Nickel had this piece of advice for winning in North Carolina: “I think he needs to show up a lot.”
Areas of the US economy have started to crack under the weight of persistently high inflation and a string of 10 consecutive rate hikes from the Federal Reserve.
But despite all that, the labor market has kept humming right along. And that’s largely expected to be the case, again, in Friday’s monthly jobs report from the Bureau of Labor Statistics.
Economists are forecasting a net gain of 190,000 jobs for May, according to Refinitiv. While that would mark a significant retreat from April’s surprisingly strong 253,000 jobs added, it would land slightly above the average monthly gains seen during the strong labor market in the years leading up to the pandemic.
Economists are also expecting the unemployment rate to tick back up to 3.5%. The US jobless rate has hovered at decade-lows for more than a year, with the current 3.4% rate matching a 53-year low hit in January.
Private sector employment increased by 278,000 jobs in May, according to ADP’s monthly National Employment Report, frequently seen as a proxy for the government’s official number. That’s significantly higher than estimates of 170,000 jobs added but slightly below the previous month’s revised total of 291,000.
Additional labor market data released Thursday showed that initial weekly jobless claims for the week ended May 27 totaled 232,000, almost no change from the previous week’s revised total of 230,000 applications.
“In the last few months, the job market has continued to defy gravity, adding a steady clip of jobs and holding unemployment at historically low levels despite a backdrop of rising interest rates, banking turmoil, tech layoffs and debt ceiling negotiations,” Daniel Zhao, lead economist at employment review and search site Glassdoor, wrote in a note this week. “After a healthy April jobs report, May is likely to repeat with an equally strong performance.”
Consumer spending and the labor market — two ares of strength in the economy — have, in a way, continued to feed on themselves.
Last week, a Commerce Department report showed that not only did the Fed’s preferred inflation gauge heat up in April but so did consumer spending. Economists largely attributed consumers’ resilience to the healthy labor market as well as ample dry powder stockpiled from home refinances and from the temporary pause in student loan payments.
In turn, that’s kept businesses busy.
“With demand for goods and services holding up, employers who have been cautious and have been very nervous about over-hiring are — when push comes to shove — having to keep hiring just to keep pace with business activity,” Julia Pollak, chief economist for online employment marketplace ZipRecruiter, told CNN. “They’re very worried about a recession later this year, but they need to keep hiring today to provide the pizzas that people are demanding and to prevent flights being canceled.”
She added: “Companies have also learned the hard way how costly staffing shortages can be.”
But labor shortages are becoming far less acute: This past Memorial Day weekend, 1% of flights were canceled, Pollak said, noting that cancellations were fivefold higher a year before.
“And while that’s a good news story — the end of shortages and disruptions during the pandemic is good for most consumers and good for businesses — it does come at some cost, which is a measurable decline in worker and job seeker leverage,” she said.
Job openings bounced up to 10.1 million positions, bucking economists’ predictions for a fourth-consecutive monthly decline, according to the Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey report. The jump brought the ratio of vacancies to unemployed to almost 1.8, which is well above a range of 1.0 to 1.2 that is considered consistent with a balanced labor market, according to Michael Feroli, JPMorgan chief US economist.
Although the April JOLTS data showed that fewer people were voluntarily quitting their jobs, the amount of layoffs and discharges dropped during the month, suggesting that employers are continuing to hoard workers, noted economist Matthew Martin of Oxford Economics.
While monthly job gains haven’t tailed off as much as anticipated to this point, there is a notable slowdown that’s occurred from the blockbuster job gains of the past three years.
But whether the softening is a sign of a return to pre-pandemic form or perhaps of a downswing into a downturn, remains to be seen.
Some of the traditional recession indicators have been flashing red. Layoff announcements have quadrupled so far this year to 417,500, which — excluding 2020 — is the highest January to May total since 2009, according to a report from Challenger, Gray & Christmas released Thursday. Falling consumer confidence, monthly declines in the Conference Board’s Leading Economic Index, and drops in temporary help employment are also signaling that a downturn is just ahead. However, that long-predicted recession isn’t here just yet.
“We were in such an unusual place during the pandemic with some of those indicators at completely extraordinary heights that they have experienced extraordinary declines,” Pollak said. “But those declines were just a return to normal, not a contraction, and it’s not a recession.”
The government’s May jobs report is scheduled for Friday at 8:30 a.m. ET.
A version of this story first appeared in CNN Business’ Before the Bell newsletter. Not a subscriber? You can sign up right here. You can listen to an audio version of the newsletter by clicking the same link.
New York CNN
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Will the Federal Reserve hike interest rates at its next meeting in June — for the 11th time in a row — or pause? Wall Street seems to be betting on the latter, but it was a topsy-turvy journey to that consensus last week.
What happened: The Fed’s meeting earlier this month fueled hopes that it was done with rate hikes, at least for now. Then,a slate of economic data last week came in stronger than expected.
Retail spending rebounded in April after two months of declines, suggesting that consumers are still spending despite tightening their purse strings. Jobless claims declined more than expected for the week ended May 13, staying below historical averages.
Traders saw a roughly 36% chance last Thursday that the Fed will raise rates by another quarter point in June, up from around 15.5% on May 12, according to the CME FedWatch Tool.
Then, Fed Chair Jerome Powell weighed in mid-morning Friday. In a panel with former Fed head Ben Bernanke, Powell said that uncertainty remains surrounding how much demand will decline from tighter credit conditions and the lagged effects of hiking rates. Traders pared down their expectations to about a 18.6% chance that the central bank will raise rates next month, as of Friday evening.
Experts seem to agree that the Fed is unlikely to raise rates again in June. “The absence of any such preparation [for a raise] is the signal and gives us additional confidence that the Fed is not going to hike in June absent a very big surprise in the remaining data, though we should expect a hawkish pause,” Evercore ISI strategists said in a May 19 note.
Jim Baird, chief investment officer at Plante Moran Financial Advisors, also expects the Fed to hold rates steady in June. But that decision isn’t set in stone, and the Fed will likely monitor three key factors in making its decision, he said. Those are:
The debt ceiling. President Joe Biden and congressional leaders have maintained that the US will likely not default on its debt. But if such a scenario were to happen, it could have catastrophic consequences for the economy and financial markets that would require the Fed wait for the crisis to be resolved before taking action.
Evolving financial conditions. The collapses of regional lenders Silicon Valley Bank, Signature Bank and First Republic have accelerated the tightening of credit conditions. While that has complicated the Fed’s plan to stabilize prices, it also could benefit the central bank by doing some of its work for it by slowing spending.
Delayed impact. The Fed’s interest rate hikes flow through the economy with a lag. So, it will take some months for the full effect of its aggressive tightening cycle to show up in the economy. That means the Fed could want to take a pause to monitor the continuing impact of what it has already done.
The Fed has also maintained that its actions are data dependent, meaning it will keep close watch on economic data that comes in before it’s due to announce its next rate decision on June 14.
Some key data points set for release before then include the April Personal Consumption Expenditures price index (that’s the Fed’s preferred inflation metric), May jobs report, the May Consumer Price Index and May Producer Price Index. (The latter two reports are due on the two days the Fed meets.)
If these data points show considerable weakening in the labor market or continued declines in inflation, that helps make the case for a pause. But signs of a robust economy with little to no signs of slowing down could mean the Fed has more room to tighten — and that it could take that opportunity.
Morgan Stanley chief executive James Gorman, 64, will step down from his role within the next 12 months, he said Friday at the bank’s annual meeting.
“The specific timing of the CEO transition has not been determined, but it is the Board’s and my expectation that it will occur at some point in the next 12 months. That is the current expectation in the absence of a major change in the external environment,” Gorman said.
Gorman, who is one of the longest-serving heads of a US bank and largely responsible for helping lead a sweeping transformation of the company after the 2008 financial crisis, became CEO in January 2010.
He will assume the role of executive chairman for “a period of time,” Gorman said, adding that the board of directors has three senior internal candidates in the pipeline to potentially take over as the next chief executive.
The June 1 ‘X-date’ — the estimated point at which the US Treasury could run out of cash — is fast approaching. For JPMorgan Chase’s Jamie Dimon, another key date is already here.
The chief executive told Bloomberg earlier this month that he has held a so-called “war room” weekly to prepare the bank for the possibility the United States defaults on its debt. He plans to meet more often as the X-date approaches, and then meet every day by May 21, he said, adding that the meetings will eventually ramp up to take place three times a day.
“I don’t think [a default] is going to happen, because it gets catastrophic,” Dimon said. “The closer you get to it, you will have panic.”
Debt ceiling negotiations appeared to be going in a positive direction for most of last week. Both President Joe Biden and House Speaker Kevin McCarthy said that the United States is unlikely to default on its debt and seemed optimistic about the path to a deal.
But debt ceiling talks between the White House and McCarthy’s office have hit a snag, and negotiators put a pause on the talks, multiple sources told CNN Friday.
While that doesn’t mean the negotiations are falling completely apart, or that the country is headed for a default, it does pose more challenges for the stock market, which has stayed relatively resilient despite debt ceiling worries starting to slowly creep in.
Dimon said in the same Bloomberg interview that he’d “love to get rid of the debt ceiling thing” altogether.
The debt ceiling situation “is very unfortunate,” he said. “It should never happen this way.”
Monday: JPMorgan Chase investor day.
Tuesday: April new home sales. Earnings from Lowe’s (LOW).
Wednesday: May Fed meeting minutes.
Thursday: GDP Q1 second read, April pending home sales, mortgage rates and weekly jobless claims. Earnings from Costco (COST), Dollar Tree (DLTR) and Best Buy (BBY).
Friday: April Personal Consumption Expenditures and May University of Michigan final consumer sentiment reading.
D’Arcy Drollinger, a veteran of San Francisco’s vibrant drag scene, has been named the city’s first-ever Drag Laureate and will become an ambassador for San Francisco’s drag and LGBTQ+ community for an 18-month term, Mayor London Breed’s office announced Thursday.
The position is the first of its kind in the country.
“While drag culture is under attack in other parts of the country, in San Francisco we embrace and elevate the amazing drag performers who through their art and advocacy have contributed to our City’s history around civil rights and equality,” Breed said in a news release.
Drollinger says she’s “proud to live in a city that is pioneering this position while other parts of the US and the world might not be supportive of Drag. This role will build bridges and create partnerships, while elevating and celebrating the Art of Drag.”
Drag, according to Drollinger, is a way for many people who “aren’t allowed to sparkle in their real lives and as their true selves” to find refuge, she told CNN.
Breed officially announced the creation of the Drag Laureate program in her June 2022 city budget, but the concept was first introduced in August 2020 in a report from San Francisco’s LGBTQ+ Cultural Heritage Task Force, a city-supported task force which reviewed community feedback on LGBTQ+ needs and concerns.
Among other strategies, the task force recommended improving partnerships between city agencies and community organizations to expand creative programs for LGBTQ+ artists, including the “creation and funding of LGBTQ+ artist residency opportunities.”
Finding spaces for queer creatives is an issue Drollinger understands intimately, as she opened the popular Oasis cabaret and nightclub in 2015 to provide a mid-size venue space for both local and touring drag performers. The survival and success of Oasis, through the pandemic, was vital for San Francisco’s drag community.
“It’s important to have a space that’s for everyone, and Oasis has become a bit of a hub,” Drollinger said.
Drag has a rich history in San Francisco, both as an appreciated art form and protest medium. Dating back to the 1950s, nightclubs such as the Black Cat and Finocchio’s drew both queer and straight audiences. The Compton Cafeteria riots in the city’s Tenderloin district became one of the first notable acts of queer protest in 1966 – three years before New York City’s famed Stonewall riots.
Drollinger, a San Francisco native, has always been drawn to the city’s vibrant creative queer scene.
“There’s something in the water. What I find exciting about San Francisco, it still remains that there is a willingness to experiment here that I haven’t found in many other places. People are willing to workshop things and play around with stuff purely for the joy of making art,” Drollinger said.
She commends the city for spearheading efforts to promote drag, especially at a time when drag performance is under attack. By making the Drag Laureate an official city position, provided with a $55,000 stipend, Drollinger says San Francisco sends a message of the “legitimacy” of drag.
“(San Francisco) is not asking for a volunteer. They’re asking us to be a diplomat and show up and be a part of the city.”
Before Per Sia, one of the Drag Laureate applicants, began dressing in drag, they fell in love with the art form as a photographer, capturing images of drag queens in South Central Los Angeles and San Francisco. They loved the extravagance and celebrity-like personas drag queens embodied but felt too shy and nervous to do drag themselves.
The first time Per Sia dressed in drag was 16 years ago on a dare, to perform in San Francisco’s Castro District. The experience was revelatory and they haven’t looked back.
“After I [performed], there was this sense of joy, this empowerment that I have never felt before, and I just fell in love with it,” Per Sia said.
They balance drag performance with their second career as an arts educator. Per Sia, who jokes that they get to “teach the little kids” during the day and “perform in front of the big kids” at night, sees drag as a tool to educate people, on top of entertaining them.
They combine these two careers as a regular for Drag Story Hour, a program where drag queens read stories to children to promote self-expression. They’ve read for San Francisco Public Library events and Oakland Pride, and Per Sia enjoys teaching children about “thinking outside of the box” through these story hours.
“When you’re a little kid, it’s all about using your imagination, glittering everything and using all the colors, but at some point all of that gets taken away,” Per Sia said. “The benefit of drag is that you teach kids that there’s other ways of living.”
Drag has always been a part of Drollinger’s life, but it was a slow process for her to embrace drag as her “work clothes” until she was in her 40s. She credits drag for helping her find her community and identity.
“So many people that find drag, they find it when they aren’t allowed to sparkle in their real life, and their fabulousness is squashed,” Drollinger said. “Drag is a way to let so much of that out.”
The appointment of the Drag Laureate comes at a time when public drag performances and transgender expression are being threatened by conservative lawmakers across the country.
“San Francisco’s commitment to inclusivity and the arts are the foundation for who we are as a city,” Breed wrote in a November statement. “Drag artists have helped pave the way for LGBTQ+ rights and representation across our city, and they are a part of what makes our city so special.” [[pending updated comment from mayor’s office TK]]
Legislation banning or restricting drag has been gaining momentum in many Republican-led states. GOP lawmakers have claimed that drag performances expose children to sexual themes and imagery that are inappropriate, though many drag performances take place in age-restricted locations or require parental consent to attend.
In March 2023, Tennessee became the first state to pass a law banning drag performances on public property and in locations where children can view the performances.
Drollinger feels the effects of the national pushback against her work, even in a city known for progressive values. She’s spent more money on security at Oasis to ensure the audience and performers feel safe, she told CNN.
“Creating these kinds of laws, demonizing trans people and the LGBTQ+ community, what they’re doing is inciting violence,” Drollinger said. “It’s terrifying. They want to erase my community and erase us.”
Both Per Sia and Drollinger hope that by pioneering the Drag Laureate position, San Francisco will establish a model of tolerance for others to follow.
“Important things happen here in San Francisco, and the world takes notice. Having this position for someone like me or anyone who applied is so special, but also, it’s showing the world that drag is powerful, and it deserves a place,” Per Sia said.
Demographic change continued to chip away at the cornerstone of the Republican electoral coalition in 2022, a new analysis of Census data has found.
White voters without a four-year college degree, the indispensable core of the modern GOP coalition, declined in 2022 as a share of both actual and eligible voters, according to a study of Census results by Michael McDonald, a University of Florida political scientist who specializes in electoral turnout.
McDonald’s finding, provided exclusively to CNN, shows that the 2022 election continued the long-term trend dating back at least to the 1970s of a sustained fall in the share of the votes cast by working-class White voters who once constituted the brawny backbone of the Democratic coalition, but have since become the absolute foundation of Republican campaign fortunes.
As non-college Whites have receded in the electorate over that long arc, non-White adults and, to a somewhat lesser extent, Whites with at least a four-year college degree, have steadily increased their influence. “This is a trend that is baked into the demographic change of the country, so [it] is likely going to accelerate over the next ten years,” says McDonald, author of the recent book “From Pandemic to Insurrection: Voting in the 2020 Presidential Election.”
From election to election, the impact of the changing composition of the voter pool is modest. The slow but steady decline of non-college Whites, now the GOP’s best group, did not stop Donald Trump from winning the presidency in 2016 – nor does it preclude him from winning it again in 2024. And, compared to their national numbers, these non-college voters remain a larger share of the electorate in many of the key states that will likely decide the 2024 presidential race (particularly Michigan, Pennsylvania and Wisconsin) and control of the Senate (including seats Democrats are defending in Montana, Ohio and West Virginia.)
But even across those states, these voters are shrinking as a share of the electorate. And McDonald’s analysis of the 2022 results shows that the non-college White share of the total vote is highly likely to decline again in 2024, while the combined share of non-Whites and Whites with a college degree, groups much more favorable to Democrats, is virtually certain to increase. The political effect of this decline is analogous to turning up the resistance on a treadmill: as their best group shrinks, Republicans must run a little faster just to stay in place.
Especially ominous for Republicans is that the share of the vote cast by these blue-collar Whites declined slightly in 2022 even though turnout among those voters was relatively strong, while minority turnout fell sharply, according to McDonald’s analysis. The reason for those seemingly incongruous trends is that even solid turnout among the non-college Whites could not offset the fact that they are continuing to shrink in the total pool of eligible voters, as American society grows better-educated and more racially diverse.
Given that minority turnout fell off, the fact that the non-college White share of the total 2022 vote still slightly declined “has to be a huge cause for concern for Republicans at this point,” says Tom Bonier, chief executive of TargetSmart, a Democratic political targeting firm. If more of the growing pool of eligible minority voters turn out in 2024, he says, “it is not unreasonable to expect” that the non-college White voters so critical to GOP fortunes could experience an even “steeper decline” in their share of the total votes cast next year.
That prospect remains a central concern for the dwindling band of anti-Trump Republicans who fear that the former president has dangerously narrowed the GOP’s appeal by identifying it so unreservedly with the cultural priorities and grievances of working-class White voters, many of them older and living outside of the nation’s largest and most economically productive metropolitan areas.
McDonald’s “data support what is self-evident: that Trumpism peaked in 2016, and that it leads to a dead end,” says former US Rep. Carlos Curbelo, a Florida Republican. “We saw this in 2018 when Republicans lost the House; we saw it in 2020 when they lost the presidency and the Senate, and we saw it in last year when Republicans were supposed to have big gains in both chambers and [did not]. All of these failures can be attributed to Trumpism. These data just confirm what is visible to the naked eye.”
Cornell Belcher, a Democratic pollster, says these slow but steady long-term changes in the electorate leave him convinced that the ceiling for Trump’s potential support in 2024 is no more than 46% of the vote. But Democrats, he believes, still face the risk that the clear majority in the electorate opposed to Trumpism will not turn out in sufficient numbers or splinter to third-party options if they do. Both dangers, he argues, are most pronounced for the diverse younger generations that have never found President Joe Biden very inspiring and have not received sufficient messaging and organizing attention from Democrats.
The political impact of those younger voters, he warns, could be blunted by the proliferation of red state laws making it more difficult to vote and Democrats focusing too much “on chasing this mythical [White] swing voter that doesn’t look like that Millennial or Gen Z voter we are relying on.”
Overall voter turnout in 2022 was high compared to almost all previous midterms, but below the peak reached in 2018, when a greater share of eligible voters turned out than in any midterm election since 1914, according to McDonald’s calculations.
Turnout last year fell most sharply among minorities: while 43% of all eligible non-White voters showed up in 2018, that slipped to just 35% last year, McDonald calculates. Turnout among eligible college-educated White voters also dropped from an astronomical 74% in 2018 to just over 69% last year. White voters without a four-year college degree actually came closest to matching their elevated 2018 performance, slipping only slightly from just over 45% then to about 43% last year.
But turnout is only one of the two factors that shape how large a share of actual voters each group comprises, which is the number that really matters in determining election outcomes. The other factor is how large a share of the pool of potential eligible voters each group represents. Turnout, in effect, is the numerator and the share of eligible voters the denominator that combined produce the share of the total vote each group casts during every election.
As McDonald found, the long-term trends in the eligible voter pool – the denominator in our equation – continued unabated in 2022. Whites without a college degree fell to just over 41% of eligible potential voters. That was down 3.2 percentage points from their share of the eligible voter population in 2018 – which was itself down exactly 3.2 percentage points from their share in 2014. In turn, from 2014 to 2022, college-educated White voters slightly increased their share of the eligible voter pool and minorities significantly increased from 30.5% then to nearly 35% now.
Netting together both the turnout results and these shifts in the eligible voter pool, McDonald found that working-class White voters in 2022 declined as a share overall, whether compared either to the last few midterm elections or the most recent presidential contests.
In 2022, Whites without a college degree cast 38.3% of all votes, he found. That was down from 39.3% in 2018 and more than 43% in 2014, according to his calculations. That finding also represented a continued decline from just over 42% of the vote when Trump won the 2016 presidential election and 39.9% in 2020 – the first time non-college Whites had fallen below 40% of the total presidential electorate in Census figures.
Whites with at least a four-year college degree were the big gainers in 2022: McDonald found they cast nearly 36% of all votes last year, compared to a little over-one-third in both 2018 and 2014 and a little less than that in the 2020 presidential year. Burdened by lower turnout, the non-White share of the total vote slipped to just over one-fourth, down slightly from 2018, but still higher than in the 2014 midterms. The minority share of the total vote was considerably larger in 2020, reaching nearly three-in-ten in Census figures.
All of this extends very consistent long-term trends. Census data analyzed by the non-partisan States of Change project show that non-college Whites have fallen from around two-thirds of the total vote under Ronald Reagan, to about three-fifths under Bill Clinton, to less than half under Barack Obama, to the current level of just under two-fifths. Over those same decades, college-educated Whites have grown from about two-in-ten to three-in-ten voters, while minorities have increased from a little over one-in-ten then to nearly three-in-ten now.
Other respected data sources differ on the share of the total vote comprised by these three big groups: the Pew Validated Voter study and the estimates by Catalist, a Democratic targeting firm, both put the share of the vote cast in 2020 by non-college Whites slightly higher, in the range of 42-44%.
But both also show the same core pattern as the Census results do, with the share of the total vote cast by those non-college Whites declining by about two percentage points every four years. The Edison Research exit polls conducted for a consortium of media organizations, including CNN, changed its methodology in a way that makes long-term comparisons impossible. But, similarly to McDonald, the exits found the non-college White share of the total vote declining to 39% in 2022 from 41% in 2018, with minorities also slightly falling over that period, and college-educated Whites growing.
The trend lines that McDonald documented for last year suggest it’s a reasonable prediction that non-college Whites will again decline as a share of total voters by two points over the period from 2020 to 2024. That would push their share of the national 2024 vote down to below 38%, with more minority voters likely filling most of that gap and the college-educated Whites growing more modestly to offset the rest.
McDonald says the basic dynamic reconfiguring the voting pool is that many Baby Boomers and their elders are aging out of the electorate. That’s both because more of them are dying or they are reaching an advanced age where turnout tends to decline, either for infirmity or other obstacles. Those older generations are preponderantly White (about three-fourths of seniors are White), and fewer have college degrees, which were not as essential to economic success in those years, McDonald points out. Meanwhile, a larger share of young adults today hold four-year degrees, and the youngest generations aging into the electorate every two years are far more racially diverse. According to calculations by William Frey, a demographer at the Brookings Metro think tank, young people of color now comprise almost exactly half of all Americans who turn 18 and age into the electorate each year.
“We are right now at the teetering edge of the influence of the baby boomers,” says McDonald. “They are just starting to enter those twilight years in their turnout rates, while other [more diverse] groups are maturing. So we are right at that cusp – that critical point of where things are going to start changing.”
The impact of these changes on the outcomes of elections, as McDonald says, is very incremental, “like the proverbial frog in the boiling water.” One way to understand that dynamic is to assume that Whites without a college degree on the one hand, and minorities and college-educated Whites on the other, all split their vote at roughly the same proportions as they have in recent elections. If the former group declines as a share of the electorate by two points from 2020-2024 and the latter groups increase by an equal amount, that change alone would enlarge Biden’s margin of victory in the two-party vote from 4.6 percentage points to 5.8, Bonier calculates. Republicans would need to increase their vote share with some or all of those groups just to get back to the deficit Trump faced in 2020 – much less to overcome it.
Ruy Teixeira, a long-time Democratic electoral analyst who has become a staunch critic of his party, argues exactly that kind of shift in voting preferences could offset the change in the electorate’s composition – and create a real threat for Biden. Even though Biden is aggressively highlighting his efforts to create blue-collar jobs through “manufacturing and infrastructure projects that are starting to get off the ground,” Teixiera recently wrote, a “sharp swing against the incumbent administration by White working-class voters seems like a very real possibility.”
Teixeira, now a nonresident senior fellow at the conservative American Enterprise Institute, also maintains Democrats face the risk Republicans can extend the unexpected gains Trump registered in 2020 with non-White voters without a college degree, especially Hispanics.
Curbelo, the former congressman, shares Teixeira’s belief that Democratic liberalism on some social issues like crime is creating an opening for Republicans to gain ground among culturally conservative Hispanics. “If they are not careful, they can jeopardize their potential gains from Republicans doubling down on Trumpism by alienating themselves from minority voters who may identify with some of the [Democrats’] economic policies but who do not necessarily identify with the party’s victimhood narrative about minorities,” Curbelo says.
Still, Curbelo warns that Republicans are unlikely to achieve the gains possible with minority voters so long as they are stamped so decisively by Trump’s polarizing image. And polling has consistently found that while many non-college Hispanic voters hold more moderate views on social issues than college-educated White liberals, those minority voters are not nearly as conservative as core GOP groups, like blue-collar Whites or evangelical Christians.
As Teixeira has forcefully argued in recent years, such demographic change doesn’t ensure doom for Republicans or success for Democrats. Among other things, that change is unevenly distributed around the country, and the small state bias of both the Electoral College and the two-senators-per-state rule magnifies the influence of sparsely populated interior states where these shifts have been felt much more lightly.
Yet, even so, the long-term change in the electorate’s composition, along with the Democrats’ growing strength among white-collar suburban voters, largely explains why the party has won the popular vote in seven of the past eight presidential elections – something no party has done since the formation of the modern party system in 1828.
And even though Whites without a college degree exceed their share of the national vote in the key Rust Belt battlegrounds of Michigan, Pennsylvania and Wisconsin, their share of the vote is shrinking along the same trajectory of about 2-3 points every four years in those states too, according to analysis by Frey. Meanwhile, in the Sun Belt battlegrounds of Georgia, Arizona and Nevada, more rapid growth in the minority population means that blue-collar Whites will likely comprise a smaller portion of the eligible voter pool than they do nationally.
Trump, with the exception of his beachhead among blue-collar minorities, has now largely locked the GOP into a position of needing to squeeze bigger margins out of shrinking groups, particularly non-college Whites. It’s entirely possible that Trump or another Republican nominee can meet that test well enough to win back the White House in 2024, especially given the persistent public disenchantment with Biden’s performance. But McDonald’s 2022 data shows why relying on a coalition tilted so heavily toward those non-college Whites becomes just a little tougher for the GOP in each presidential race.
While Trump or another Republican certainly can win in 2024, Bonier says, “he has reshaped the party in such a way that they have a very narrow path to victory.”
Many airline employees have gone for years without pay raises, even after enduring difficult working conditions during the pandemic. Pilots for American Airlines voted to strike this week, and Southwest pilots plan to vote as well, but they won’t be walking off the job anytime soon — if at all — due to a labor law that places considerable hurdles in the way of any union that wants to strike.
Here’s what else you need to know to Get Up to Speed and On with Your Day.
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In preparation for an expected surge of crossings at the US-Mexico border next week, the Biden administration plans to send an additional 1,500 active-duty troops to the border to free up Department of Homeland Security agents. The troops will take on strictly administrative roles, officials said, and will join around 2,500 National Guard troops already in place. The surge of migrants is expected because Title 42, the Trump-era policy that allowed authorities to quickly turn away certain migrants at the border during the pandemic, expires on May 11. Encounters between border agents and undocumented immigrants are at around 7,000 per day at the moment and are expected to rise dramatically next week, despite a warning from the State Department and DHS about a new, more punitive policy related to border crossings.
The man suspected of gunning down five people at a neighbor’s home in Texas last week — including a mother and her 9-year-old son — was captured Tuesday after a dayslong manhunt. The suspect was found under a pile of laundry in the closet of a home just miles from the Cleveland, Texas, residence where the shooting took place, San Jacinto County Sheriff Greg Capers said. “We just want to thank the person who had the courage and bravery to call in the suspect’s location,” an FBI spokesperson said, adding that authorities are now investigating whether the suspect had any help in hiding. The gunman will be held on five counts of murder and his bond is set at $5 million.
Official describes suspect found hiding in laundry
Popular late night shows are airing repeat episodes “until further notice” due to the film and TV writers’ strike, sources tell CNN. Several shows including “Saturday Night Live,” “Jimmy Kimmel Live!” and “The Late Show with Stephen Colbert” began airing repeat episodes as of Tuesday. Seth Meyers and Jimmy Fallon, who host NBC’s “Late Night with Seth Meyers” and “The Tonight Show,” respectively, previously said they would honor the strike and not air any new episodes as well. Late night shows are being especially impacted because they depend on their writers for bits, monologues and celebrity interview questions. Until an agreement is reached, analysts say the strike could shut down production on shows and cause a domino effect in the wider realm of the entertainment industry, pushing back the return of many programs set for the fall.
Strike means TV shows and films in jeopardy
Federal Reserve officials are expected to raise interest rates by a quarter point today. The Fed’s decision comes just two days after the collapse of First Republic Bank, the second-biggest bank failure in US history. When the Fed raises interest rates, banks need to raise the rates on their savings accounts in order to lure depositors from their competitors. That can put a disproportionate amount of pressure on mid-sized and regional banks — like the ones who saw depositors pull their money when the banking crisis began in March. Still, the Fed will move to raise interest rates today to lower inflation. To do that, it has to intentionally slow parts of the economy by making it more expensive for banks, and thereby consumers, to borrow money.
Leaders of Sudan’s warring factions agreed to a seven-day ceasefire on Tuesday, the foreign ministry of South Sudan said in a statement. However, previous ceasefires have failed to quell the fighting between the rival factions in various parts of the country. Both sides — the Sudanese Armed Forces and the paramilitary Rapid Support Forces — have yet to comment on the report on their official channels. Tuesday’s announcement came after the UN’s refugee agency warned more than 800,000 people may flee to neighboring countries, as the ongoing violence blocks evacuation convoys from key ports in Sudan. More than 70,000 people have already fled Sudan to neighboring countries, a spokesperson for the agency said earlier this week.
Seven-day ceasefire expected to begin Thursday in Sudan
Teenage boy opens fire at Serbian school, killing eight children and a security guard, officials say
Eight children and a security guard have have been killed after a 14-year-old boy allegedly opened fire in an elementary school in the Serbian capital of Belgrade, according to Serbia’s Interior Ministry. Several children and a teacher were also injured in the attack, officials said. The boy is in custody following the incident.
Cockroach at the Met Gala goes viral
A bug on the red carpet received more buzz than some A-list celebrities. Watch the video here.
Top 10 best cuisines in the world, according to CNN Travel
That’s how many criminal charges, or lack thereof, will be filed against one of the former Memphis police officers involved in the fatal traffic stop that led to Tyre Nichols’ death. On January 7, 29-year-old Nichols, a Black man, was repeatedly punched and kicked by Memphis police officers following a traffic stop and brief foot chase. Former White Memphis police officer Preston Hemphill was part of the initial traffic stop in which bodycam footage revealed he used an “assaultive statement” after firing a stun gun at Nichols. Hemphill was not involved in the second encounter where Nichols was brutally beaten by police.
“The public shouldn’t have their daily lives ruined by so-called ‘eco-warriors’ causing disruption.”
— UK Home Secretary Suella Braverman, issuing a statement Tuesday on the government’s plan to take stronger action against peaceful protesters, days ahead of the coronation of King Charles III. The Home Office said parts of a controversial law will go into place today that will “give police the powers to prevent disruption at major sporting and cultural events.” For example, protestors who physically attach themselves to things like buildings could receive a six-month prison sentence or “unlimited fine,” the Home Office said in a statement.
Most teenagers favor limousines and luxury cars for their prom transportation. These high school students, on the other hand, preferred a tank for their grand entrance. (Click here to view)
Clashes erupted in Paris on Monday marking May 1, a traditional day of union-led marches, in the wake of hugely unpopular changes to France’s pension system that were signed into law last month.
One of France’s largest unions, the CGT, had called for “historic” protests following months of unrest and widespread strikes that saw transport grind to a halt and garbage mount in the streets of Paris.
A CNN team on the ground reported chaotic scenes from the protests, having witnessed fireworks and other projectiles thrown at the police who answered with tear gas as they retreated and regrouped. Ahead of the protest the police had warned of a heightened risk of violence, with at least 30 people arrested as a result of Monday’s demonstrations, according to CNN affiliate BFMTV.
Protesters were forcibly pulling detained civilians out of the police’s arms.
One officer hit by a Molotov cocktail received treatment after sustaining what seemed to be “serious burns,” according to a spokesman with the Paris police.
France’s Constitutional Council, which plays a similar role to the US Supreme Court, in April approved the most controversial part of the reform – the raising of the retirement age from 62 to 64.
Despite the decision, some of France’s powerful unions say they will fight on, with the question now whether this anger will plague the rest of Macron’s time in office or disappear from the streets.
Here’s all you need to know about the pension reforms.
For the French “it was never about the age of retirement,” said political scientist Dominique Moïsi, “but the balance between work and life.”
Pensions reform has long been a thorny issue in France. In 1995, weeks-long mass protests forced the government of the day to abandon plans to reform public sector pensions. In 2010, millions took to the streets to oppose raising the retirement age by two years to 62 and in 2014 further reforms were met with widespread demonstrations.
“Each time there is opposition from public opinion, then little by little the project passes and basically, public opinion is resigned to it,” Pascal Perrineau of Sciences Po university said.
For many in France, the pensions system, as with social support more generally, is viewed as the bedrock of the state’s responsibilities and relationship with its citizens.
The post-World War II social system enshrined rights to a state-funded pension and health care, which have been jealously guarded since, in a country where the state has long played a proactive role in ensuring a certain standard of living.
How Macron pushed through these reforms – bypassing a parliamentary vote – inflamed tensions as much as their content, focusing anger on the president himself.
“I don’t think in the history of the Fifth Republic, we have seen so much rage, so much hatred at our president. And I remember as a young student, I was in the streets of Paris in May ’68, and there was rejection of General de Gaulle but never that personal hatred,” Moïsi said.
Macron is above all a business-minded president. Making France more business-friendly and government more efficient have been central to his mission.
The young president made social reforms, especially of the pensions system, a flagship policy of his 2022 re-election.
For Macron’s cabinet, the problem is money. The current system – relying on the working population to pay for a growing age group of retirees – is no longer fit for purpose, the government says.
Labor minister Olivier Dussopt said that without immediate action the pensions deficit would reach more than $13 billion annually by 2027. Referencing opponents of the reforms, Dussopt told CNN affiliate BFMTV: “Do they imagine that if we pause the reforms, we will pause the deficit?”
It is worth noting that the higher pension age will still keep France below the norm in Europe and in many other developed economies.
State pensions in France are also more generous than elsewhere. At nearly 14% of GDP in 2018, the country’s spending on state pensions is larger than in most other countries, according to the Organization for Economic Cooperation and Development (OECD).
The Constitutional Council’s decision means the reforms are going ahead.
From September, the first retirees will have to wait an additional three months for their state pensions. With regular, incremental increases, by 2030 the retirement age will have reached 64.
Protesters are unbowed. One told journalists in the immediate aftermath of the decision they would “fight until this reform is abandoned.”
Between January and mid-April, despite sporadic violence, support for the protests grew by some 11%, figures from pollster IFOP in partnership with Fiducial/Sud Radio showed.
In contrast, during the Yellow Vest protests, started in opposition to hikes in fuel prices, violence gradually soured public support. That these pensions protests continue to hold such popular goodwill is an ominous sign for Macron’s future plans.
The size and violence of pensions protests spiked when Macron forced the legislation past the country’s lower legislative house without a vote. Since then, a determined minority has continued to protest – and a much smaller group to engage in violence. For now, with the law passed, momentum may have shifted away from mass street protests, even if flare-ups continue.
But for an electorate the majority of whom did not pick Macron as their first choice, the May 1 marches will be a barometer of that anger, filmmaker David Dufresne, who directed a documentary on the Yellow Vest protests, told CNN.
“Democracy by the street is back again,” he said.
Macron is still not far into his second term, having been re-elected in 2022, and still has four years to serve as the country’s leader. Given French presidents serve fixed terms, his position is safe.
Following the passage of the reforms, his government laid out a slew of policies promising additional funding for public services – nurse and teacher salaries included – tougher immigration measures and more environmental action in an effort to win back public support. But the horse may have already bolted for Macron’s efforts to woo back the public.
Looking ahead to the next presidential election in 2027 – still far off on the political horizon – the anger Macron has stirred in the country’s streets doesn’t bode well for his party’s chances.
While unions have led these protests, opposition politicians, political allies and even some in his own party have come out in support of the demonstrators.
In a re-run of the 2024 presidential run-off, with the far-right’s Marine Le Pen up against a candidate from Macron’s party, this popular anger may be enough to give pause to voters who supported Macron merely to stymie the far-right.
“He failed to sell his logic and rationality,” Moïsi said, comparing Macron to Barack Obama, whose second term gave way to the presidency of Donald Trump.
While Macron’s reforming crusade continues, the pensions controversy could ultimately force him to negotiate more, Perrineau warns – though he notes the French president is not known for compromise.
His tendency to be “a little imperious, a little impatient” can make political negotiations harder, Perrineau said.
That, he adds, is “perhaps the limit of Macronism.”
“Between the busy roads, people, and all the attractants that can cause a bear to lose its natural fear of humans, a neighborhood is not a safe place for a bear!” wrote the department.
The department’s game wardens and biologists helped remove the bear from the tree, the Facebook post says. They teamed up with firefighters from the Reno Fire Department to tranquilize the bear and safely catch it in a tarp.
Photos posted by both agencies show officials in a suburban neighborhood patiently waiting at the base of a tree with a red tarp. The images show the bear clinging to branches before falling seemingly head-first onto the tarp.
The Nevada Department of Wildlife said officials would release the bear in its natural habitat Thursday. The agency didn’t immediately respond to an inquiry by CNN about the animal’s release.
Black bears are the only species of bear that live in Nevada, according to the department’s website. The agency advises Nevadans to use bear-resistant garbage containers to avoid attracting animals and critters, lock windows and doors and keep food out of vehicles.
3M announced significant layoffs Tuesday as part of yet another major restructuring plan as the manufacturing sector prepares for a possible recession and slumping demand for goods.
The manufacturing behemoth behind some consumer brands, including Post-It Notes and Scotch Tape, said it would lay off 6,000 staff around the world. Those cuts are in addition to the 2,500 manufacturing roles 3M eliminated in January. 3M also announced several mass layoffs in 2019 and 2020, but total headcount has been up and down over the past several years.
The company said it anticipates it will save up to $900 million a year before taxes after the layoffs are complete. 3M argued that the cuts are “intended to make 3M stronger, leaner and more focused” by simplifying its supply chain and reducing layers of management.
“These actions are expected to meaningfully reduce costs and drive long-term improvement in margins and cash flow while enabling a more efficient and effective structure for driving long-term growth,” 3M said in a statement.
3M also announced several management changes as it reported earnings and sales that fell from the previous year. Sales slumped 9% to $8 billion, while net income attributable to the company tumbled 25% to under $1 billion in the quarter.
The company said it would prioritize products that customers are increasingly demanding, including climate tech, sustainable packaging and automated industrial products, among other emerging technologies. 3M also reaffirmed its previous outlook for 2023, anticipating sales would fall by as much as 6% this year.
3M said the supply chain problems that doomed the sector for years in the wake of the pandemic have largely eased. That means backlogged orders have been shipped, and the company (and its peers) no longer need as much staff to handle the workload.
Meanwhile, demand for manufactured goods has fallen in recent months. Consumers have been spending less on stuff and more on experiences lately, and businesses are gearing up for an anticipated recession.
3M rival Dow also announced thousands of layoffs at the beginning of the year.
Shares of 3M
(MMM) rose slightly in premarket trading.
Russell Dye, Jordan’s spokesperson, claimed in a statement Monday that Moore “refused to answer questions” about the FBI’s alleged retaliation against conservatives during a previous transcribed interview with the panel.
CNN has reached out to the FBI for comment.
Jordan and his fellow Republicans say they have heard from “whistleblowers” who disclosed that the FBI is attempting to “purge” employees with conservative views.
“We have received protected whistleblower disclosures that the FBI is engaging in a ‘purge’ of employees with conservative views by revoking their security clearances and indefinitely suspending these employees. Many of the formal notices for these adverse personnel actions have been signed by you,” Jordan, an Ohio Republican, wrote in his September letter to Moore.
Residents and business owners in parts of Monmouth County, New Jersey, have been warned of potentially hazardous materials at a nearby former industrial site after firefighters found leaking containers and materials on fire at the location.
The US Environmental Protection Agency has started overseeing the sampling and removal of around 200 to 300 chemical drums and containers found at the former manufacturing facility in Howell Township, it said in an April community update. It is not yet clear what type of chemicals the drums and containers hold, the EPA said.
EPA spokesperson Stephen McBay told CNN Sunday there is “no immediate need for evacuations” as the agency actively conducts cleanup at the site.
The cleanup comes after a local fire department discovered materials burning inside an old metal structure at the site on February 9, the EPA said. Firefighters found numerous drums and smelled a chemical odor before putting out the fire and called in other agencies for support in addressing potentially hazardous materials.
In March, the EPA said the New Jersey Department of Environmental Protection assessed the site and found roughly “200 to 300 55-gallon drums and containers, many of which were either bulging, rusting, denting, or leaking.”
The department then asked for assistance from the EPA, which said it found “breaches in the front fence of the property and no fence securing any other side of the property.” The EPA also observed containers that were leaking and labeled as hazardous materials, it said.
The site is the former location of Compounders Inc., which manufactured chemical compounds, including glues, adhesives, and asphalt materials, according to the EPA. Compounders operated until 2019. The current owner – who has not been publicly identified – purchased the business in 2021.
When asked by CNN if criminal charges are pending over the disposal of potentially hazardous material at the site, the EPA’s McBay said the agency “does not provide information on ongoing or potentially ongoing enforcement actions.”
Resident and business owners within a mile of the site were sent a letter on March 30 from the Howell Township Office of Emergency Management, warning of potential hazardous materials at the site. In addition to the large number of drums found, the letter said authorities also found “spilled materials on the ground and open drums, as well as solid waste.”
Residents at a community meeting on March 21 were told the evacuation plan was created “out of an abundance of caution.”
There are at least three schools and two child care centers in the area, according to an April community update.
The letter from the township’s Office of Emergency Management added, “We estimate the risk of a release of any potential hazardous material to be very low. After all drums are removed from the property, an investigation will be ongoing with the State NJDEP and EPA to determine what, if any, impacts have occurred to groundwater, soil or surface water.”
The EPA has placed 24/7 security on the property and said it has installed a perimeter fence “to ensure there is no illegal trespassing on or around the site.”
High speed trains have proved their worth across the world over the past 50 years.
It’s not just in reducing journey times, but more importantly, it’s in driving economic growth, creating jobs and bringing communities closer together. China, Japan and Europe lead the way.
So why doesn’t the United States have a high-speed rail network like those?
For the richest and most economically successful nation on the planet, with an increasingly urbanized population of more than 300 million, it’s a position that is becoming more difficult to justify.
Although Japan started the trend with its Shinkansen “Bullet Trains” in 1964, it was the advent of France’s TGV in the early 1980s that really kick-started a global high-speed train revolution that continues to gather pace.
But it’s a revolution that has so far bypassed the United States. Americans are still almost entirely reliant on congested highways or the headache-inducing stress of an airport and airline network prone to meltdowns.
China has built around 26,000 miles (42,000 kilometers) of dedicated high-speed railways since 2008 and plans to top 43,000 miles (70,000 kilometers) by 2035.
“Many Americans have no concept of high-speed rail and fail to see its value. They are hopelessly stuck with a highway and airline mindset,” says William C. Vantuono, editor-in-chief of Railway Age, North America’s oldest railroad industry publication.
Cars and airliners have dominated long-distance travel in the United States since the 1950s, rapidly usurping a network of luxurious passenger trains with evocative names such as “The Empire Builder,” “Super Chief” and “Silver Comet.”
Deserted by Hollywood movie stars and business travelers, famous railroads such as the New York Central were largely bankrupt by the early 1970s, handing over their loss-making trains to Amtrak, the national passenger train operator founded in 1971.
In the decades since that traumatic retrenchment, US freight railroads have largely flourished. Passenger rail seems to have been a very low priority for US lawmakers.
Powerful airline, oil and auto industry lobbies in Washington have spent millions maintaining that superiority, but their position is weakening in the face of environmental concerns and worsening congestion.
Some of this will be invested in repairing Amtrak’s crumbling Northeast Corridor (NEC) linking Boston, New York and Washington.
There are also big plans to bring passenger trains back to many more cities across the nation – providing fast, sustainable travel to cities and regions that have not seen a passenger train for decades.
Add to this the success of the privately funded Brightline operation in Florida, which has been given the green light to build a $10 billion high-speed rail link between Los Angeles and Las Vegas by 2027, plus schemes in California, Texas and the proposed Cascadia route linking Portland, Oregon, with Seattle and Vancouver, and the United States at last appears to be on the cusp of a passenger rail revolution.
“Every president since Ronald Reagan has talked about the pressing need to improve infrastructure across the USA, but they’ve always had other, bigger priorities to deal with,” says Scott Sherin, chief commercial officer of train builder Alstom’s US division.
“But now there’s a huge impetus to get things moving – it’s a time of optimism. If we build it, they will come. As an industry, we’re maturing, and we’re ready to take the next step. It’s time to focus on passenger rail.”
Sherin points out that other public services such as highways and airports are “massively subsidized,” so there shouldn’t be an issue with doing the same for rail.
“We need to do a better job of articulating the benefits of high-speed rail – high-quality jobs, economic stimulus, better connectivity than airlines – and that will help us to build bipartisan support,” he adds. “High-speed rail is not the solution for everything, but it has its place.”
Only Amtrak’s Northeast Corridor has trains that can travel at speeds approaching those of the 300 kilometers per hour (186 mph) TGV and Shinkansen.
Even here, Amtrak Acela trains currently max out at 150 mph – and only in short bursts. Maximum speeds elsewhere are closer to 100 mph on congested tracks shared with commuter and freight trains.
This year, Amtrak plans to introduce its new generation Avelia Liberty trains to replace the life-expired Acelas on the NEC.
Capable of reaching 220 mph (although they’ll be limited to 160 mph on the NEC), the trains will bring Alstom’s latest high-speed rail technology to North America.
The locomotives at each end – known as power cars – are close relatives of the next generation TGV-M trains, scheduled to debut in France in 2024.
Sitting between the power cars are the passenger vehicles, which use Alstom’s Tiltronix technology to run faster through curves by tilting their bodies, much like a MotoGP rider does. And it’s not just travelers who will benefit.
“When Amtrak awarded the contract to Alstom in 2015 to 2016, the company had around 200 employees in Hornell,” says Shawn D. Hogan, former mayor of the city of Hornell in New York state.
“That figure is now nearer 900, with hiring continuing at a fast pace. I calculate that there has been a total public/private investment of more than $269 million in our city since 2016, including a new hotel, a state-of-the-art hospital and housing developments.
“It is a transformative economic development project that is basically unheard of in rural America and if it can happen here, it can happen throughout the United States.”
Alstom has spent almost $600 million on building a US supply chain for its high-speed trains – more than 80% of the train is made in the United States, with 170 suppliers across 27 states.
“High-speed rail is already here. Avelia Liberty was designed jointly with our European colleagues, so we have what we need for ‘TGV-USA’,” adds Sherin.
“It’s all proven tech from existing trains. We’re ready to go when the infrastructure arrives.”
And those new lines could arrive sooner than you might think.
In March, Brightline confirmed plans to begin construction on a 218-mile (351-kilometer) high-speed line between Rancho Cucamonga, near Los Angeles, and Las Vegas, carving a path through the San Bernardino Mountains and across the desert, following the Interstate 15 corridor.
The 200 mph line will slash times to little more than one hour – a massive advantage over the four-hour average by car or five to seven hours by bus – when it opens in 2027.
Mike Reininger, CEO of Brightline Holdings, says: “As the most shovel-ready high-speed rail project in the United States, we are one step closer to leveling the playing field against transit and infrastructure projects around the world, and we are proud to be using America’s most skilled workers to get there.”
Brightline West expects to inject around $10 billion worth of benefits into the region’s economy, creating about 35,000 construction jobs, as well as 1,000 permanent jobs in maintenance, operations and customer service in Southern California and Nevada.
It will also mark the return of passenger trains to Las Vegas after a 30-year hiatus – Amtrak canceled its “Desert Wind” route in 1997.
Meanwhile, construction is progressing on another high-speed line through the San Joaquin Valley.
Set to open around 2030, California High Speed Rail (CHSR) will run from Merced to Bakersfield (171 miles) at speeds of up to 220 mph.
Coupled with proposed upgrades to commuter rail lines at either end, this project could eventually allow high-speed trains to run the 350 miles (560 kilometers) between Los Angeles to San Francisco metropolitan areas in just two hours and 40 minutes.
CHSR has been on the table as far back as 1996, but its implementation has been controversial.
Disagreements over the route, management issues, delays in land acquisition and construction, cost over-runs and inadequate funding for completing the entire system have plagued the project – despite the economic benefits it will deliver as well as reducing pollution and congestion. Around 10,000 people are already employed on the project.
Costing $63 billion to $98 billion, depending on the final extent of the scheme, CHSR is to connect six of the 10 largest cities in the state and provide the same capacity as 4,200 miles of new highway lanes, 91 additional airport gates and two new airport runways costing between $122 billion and $199 billion.
With California’s population expected to grow to more than 45 million by 2050, high-speed rail offers the best value solution to keep the state from grinding to a smoggy halt.
Brightline West and CHSR offer templates for the future expansion of high-speed rail in North America.
By focusing on pairs of cities or regions that are too close for air travel and too far apart for car drivers, transportation planners can predict which corridors offer the greatest potential.
“It’s logical that the US hasn’t yet developed a nationwide high-speed network,” says Sherin. “For decades, traveling by car wasn’t a hardship, but as highway congestion gets worse, we’ve reached a stage where we should start looking more seriously at the alternatives.
“The magic numbers are centers of population with around three million people that are 200 to 500 miles apart, giving a trip time of less than three hours – preferably two hours.
“Where those conditions apply in Europe and Asia, high-speed rail reduces air’s share of the market from 100% to near zero. The model would work just as well in the USA as it does globally.”
Sherin points to the success of the original generation of Acela trains as evidence of this.
“When the first generation Acela trains started running between New York City and Washington in 2000, Amtrak attracted so many travelers that the airlines stopped running their frequent ‘shuttles’ between the two cities,” he adds.
However, industry observer Vantuono is more pessimistic.
“A US high-speed rail network is a pipe dream,” he says. “A lack of political support and federal financial support combined with the kind of fierce landowner opposition that CHSR has faced in California means that the challenges for new high-speed projects are enormous.”
According to the International Energy Agency (IEA), urban and high-speed rail hold “major promise to unlock substantial benefits” in reducing global transport emissions.
Dr. Fatih Birol, the IEA’s executive director, argues that rail transport is “often neglected” in public debates about future transport systems – and this is especially true in North America.
“Despite the advent of cars and airplanes, rail of all types has continued to evolve and thrive,” adds Birol.
Globally, around three-quarters of rail passenger movements are made on electric-powered vehicles, putting the mode in a unique position to take advantage of the rise in renewable energy over the coming decades.
Here, too, the United States lags far behind the rest of the world, with electrification almost unheard of away from the NEC.
Rail networks in SouthKorea, Japan, Europe, China and Russia are more than 60% electrified, according to IEA figures, the highest share of track electrification being South Korea at around 85%.
In North America, on the other hand, less than 5% of rail routes are electrified.
The enormous size of the United States and its widely dispersed population mitigates against the creation of a single, unified network of the type being built in China and proposed for Europe.
Air travel is likely to remain the preferred option for transcontinental journeys that can be more than 3,000 miles (around 4,828 kilometers).
But there are many shorter inter-city travel corridors where high-speed rail, or a combination of new infrastructure and upgraded railroad tracks or tilting trains, could eventually provide an unbeatable alternative to air travel and highways.
The Supreme Court seemed to side with a former mail carrier, an evangelical Christian, who says the US Postal Service failed to accommodate his request to not work on Sundays.
A lower court had ruled against the worker, Gerald Groff, holding that his request would cause an “undue burden” on the USPS and lead to low morale at the workplace when other employees had to pick up his shifts.
But during oral arguments on Tuesday, there appeared to be consensus, after almost two hours of oral arguments, that the appeals court had been too quick to rule against Groff.
There seemed to be, as Justice Elena Kagan put it, some level of “kumbaya-ing” between the justices on the bench at times.
But as justices sought to land on a test that lower courts could use to clarify how far employers must go to accommodate their employees’ religious beliefs, differences arose when a lawyer for Groff suggested that the court overturn decades-old precedent. Conservative Justice Samuel Alito seemed open to the prospect.
Critically, however, Justice Amy Coney Barrett and Brett Kavanaugh were sympathetic to arguments made by the Postal Service that granting Groff’s request might cause morale to plummet among the other employees. Kavanaugh noted that “morale” among employers is critical to the success of any business. And several justices nodded to the financial difficulties the USPS has faced over the years.
Groff, who lives in Pennsylvania, served in 2012 as a rural carrier associate at the United States Postal Service, a position that provides coverage for absent career employees who have earned the ability to take off weekends. Rural carrier associates are told they need flexibility.
In 2013, Groff’s life changed when the USPS contracted with Amazon to deliver packages on Sundays. Groff’s Christian religious beliefs bar him from working on Sundays.
The post office contemplated some accommodations to Groff such as offering to adjust his schedule so he could come to work after religious services, or telling him he should see if other workers could pick up his shifts. At some point, the postmaster himself did the deliveries because it was difficult to find employees willing to work on Sunday. Finally, the USPS suggested Groff choose a different day to observe the Sabbath.
The atmosphere with his co-workers was tense and Groff said he faced progressive discipline. In response, he filed complaints with the Equal Employment Opportunity Commission, which is charged with enforcing federal laws that make it illegal to discriminate against an employee because of religion.
Groff ultimately left in 2019. In a resignation letter, he said he had been unable to find an “accommodating employment atmosphere with the USPS that would honor his religious beliefs.”
Groff sued arguing that the USPS violated Title VII – a federal law that makes it unlawful to discriminate against an employee based on his religion. To make a claim under the law, an employee must show that he holds a sincere religious belief that conflicts with a job requirement, he must inform his employer and has to have been disciplined for failing to comply.
Under the law, the burden then shifts to the employer. The employer must show that they made a good faith effort to “reasonably accommodate” the employee’s belief or demonstrate that such an accommodation would cause an “undue hardship” upon the employer.
District Judge Jeffrey Schmehl, an appointee of former President Barack Obama, ruled against Groff, holding that that his request to not work on Sundays would cause an “undue hardship” for the USPS.
“Exempting Groff from working on Sundays caused more than a de minimis cost on USPS because it actually imposed on his coworkers, disrupted the workplace and workflow, and diminished employee morale,” the 3rd Circuit wrote in its opinion last year.
“The accommodation Groff sought (exemption from Sunday work)” the court added, “would cause an undue hardship on USPS.”
A dissenting judge, Thomas Hardiman, offered a road map for justices seeking to rule in favor of Groff. The main thrust of his dissent was that the law requires the USPS to show how the proposed accommodation would harm “business” – not Groff’s coworkers.
“Neither snow nor rain nor heat nor gloom of night stayed Gerald Groff from the completion of his appointed rounds,” wrote Hardiman, a George W. Bush nominee who was on a shortlist for the Supreme Court nomination that went to Justice Neil Gorsuch in 2017. “But his sincerely held religious belief precluded him from working on Sundays.”
Groff’s lawyer, Aaron Streett, told the high court that the USPS could have done more and was wrong to claim that “respecting Groff’s belief was too onerous.” He urged the justices to cut back or invalidate precedent and allow an accommodation that would allow the worker to “serve both his employer and his God.”
“Sunday’s a day where we get together and almost taste heaven,” Groff told The New York Times recently. “We come together as believers. We celebrate who we are, together. We worship God. And so to be asked to deliver Amazon parcels and give all that up, it’s just really kind of sad.”
The Biden administration has urged the high court to simply clarify the law to make clear that an employer is not required to accommodate an employee’s Sabbath observance by “operating shorthanded or regularly paying overtime to secure replacement workers.”
Solicitor General Elizabeth Prelogar acknowledged, however, that employer could still be required to bear other costs such as administrative expenses associated with rearranging schedules.
This story has been updated with additional details.
Editor’s Note: This is an updated version of a story that originally ran on April 14, 2023.
New York CNN
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It’s April 18, the official deadline to file your federal and state income tax returns for 2022. (It is also, apparently, National Animal Crackers Day for those who celebrate.)
Whether you have already filed your tax return or still need to, the good news is this tax filing season has gone much more smoothly than the past three, which were hurt by the pandemic.
“This is the first tax season since 2019 where the IRS and the nation were on normal footing,” IRS Commissioner Danny Werfel said in a call with reporters.
For instance, Werfel noted that since January, thanks to an infusion of some new funding after years of budget cuts, IRS employees have been able to answer 87% of calls from filers with questions. Last year, they answered fewer than 15%. And the wait times on those phone calls dropped to just 4 minutes this filing season from 27 minutes last filing season.
The agency also added a roster of new online tools for filers, he added.
Those online tools may be especially helpful today if you are scrambling to get your return in before midnight. Or, if you’ve come to the realization that you need to file for an extension. Either way, here are some key things to know:
Not everyone has to file on April 18: If you live in a federally declared disaster area, have a business there — or have relevant tax documents stored by businesses in that area — it’s likely the IRS has already extended the filing and payment deadlines for you. Here is where you can find the specific extension dates for each disaster area.
Thanks to many rounds of extreme weather in recent months, for instance, tax filers in most of California — which accounts for 10% to 15% of all federal filers — have already been granted an extension until Oct. 16 to file and to pay, according to an IRS spokesperson.
If you’re in the armed forces and are currently or were recently stationed in a combat zone, the filing and payment deadlines for your 2022 taxes are most likely extended by 180 days. But your specific extended filing and payment deadlines will depend on the day you leave (or left) the combat zone. This IRS publication offers more detail.
Lastly, if you made little to no money last year (typically less than $12,950 for single filers and $25,900 for married couples), you may not be required to file a return. But you may want to anyway if you think you are eligible for a refund thanks to, for instance, refundable tax credits such as the Earned Income Tax Credit. (Use this IRS tool to gauge whether you are required to file this year.) You also are likely eligible to use IRS Free File (intended for those with adjusted gross income of $73,000 or less) so it won’t cost you to submit a return.
Your paycheck may not be your only source of income: If you had one full-time job you may think that is the only income you made and have to report. But that’s not necessarily so.
Other potentially taxable and reportable income sources include:
Interest on your savings
Investment income (e.g., dividends and capital gains)
Pay for part-time or seasonal work, or a side hustle
Unemployment income
Social Security benefits or distribution from a retirement account
Tips
Gambling winnings
Income from a rental property you own
Organize your tax documents: By now you should have received every tax document that third parties are required to send you (your employer, bank, brokerage, etc.).
If you don’t recall receiving a hard copy of a tax form in the mail, check your email and your online accounts — a document may have been sent to you electronically.
Here are some of the tax forms you may have received:
W-2 from your wage or salaried jobs
1099-B for capital gains and losses on your investments
1099-DIV from your brokerage or company where you own stock for dividends or other distributions from their investments
1099-INT for interest over $10 on your savings at a financial institution
1099-NEC from your clients, if you worked as a contractor
1099-K for payments for goods and services through third-party platforms like Venmo, CashApp or Etsy. The 1099-K is required if you made more than $20,000 in over 200 transactions during the year. (Next year the reporting threshold drops to $600.) But even if you didn’t get a 1099-K you still must report all the income that you made over third-party platforms in 2022.
1099-Rs for distributions over $10 that you received for a pension, annuity, retirement account, profit-sharing plan or insurance contract
SSA-1099 or SSA-1042S for Social Security benefits received.
“Be aware that there’s no form for some taxable income, like proceeds from renting out your vacation property, meaning you’re responsible for reporting it on your own,” according to the Illinois CPA Society.
One very last-minute way to reduce your 2022 tax bill: If you’re eligible to make a tax-deductible contribution to an IRA and haven’t done so for last year, you have until April 18 to contribute up to $6,000 ($7,000 if you’re 50 or older). That will reduce your tax bill and augment your retirement savings.
Proofread your return before submitting it: Do this whether you’re using tax software or working with a professional tax preparer.
Little mistakes and oversights delay the processing of your return (and the issuance of your refund if you’re owed one). You want to avoid things like having a typo in your name, birth date, Social Security number or direct deposit number; choosing the wrong filing status (e.g., married vs single); making a simple math error; or leaving a required field blank.
What to do if you can’t file by April 18: If you’re not able to file on time, fill out Form 4868 electronically or on paper and send it in no later than today. You will be granted an automatic six-month extension to file.
Note, however, that an extension to file is not an extension to pay. You will be charged interest (currently running at 7%) and a penalty on any amount you still owe for 2022 but haven’t paid by April 18.
So if you suspect you still owe tax — perhaps you had some income outside of your job for which tax wasn’t withheld or you had a big capital gain last year — approximate how much more you owe and send that money to the IRS by the end of today.
You can choose to do so by mail, attaching a check to your extension request form. Make sure your envelope is postmarked no later than April 18.
Or the more efficient route is pay what you owe electronically at IRS.gov, said CPA Damien Martin, a tax partner at EY. If you do that, the IRS notes you will not have to file a Form 4868. “The IRS will automatically process an extension of time to file,” the agency notes in its instructions.
If you opt to electronically pay directly from your bank account, which is free, select “extension” and then “tax year 2022” when given the option.
You can also pay by credit or debit card,but you will be charged a processing fee. Doing so, though, may become much more costly than just a fee if you charge your tax payment but don’t pay your credit card bill off in full every month, since you likely pay a high interest rate on outstanding balances.
If you can’t pay what you owe in full, the IRS does have some payment plan options. But it might be smart to first consult with a certified public accountant or a tax preparer who is an enrolled agent to make sure you are making the best choice for your circumstance.
If you still owe income taxes to your state, remember that you may need to go through a similar exercise of filing for an extension and making a payment to your state’s revenue department, Martin said.
Use this interactive tax assistant for basic questions you may have: The IRS provides an “interactive tax assistant” that can help you answer more than 50 basic questions pertaining to your individual circumstance on income, deductions, credits and other technical questions.
If you’ve already filed your return, you’re probably glad to have it in the rear view mirror. But you may still have a few questions about what’s ahead.
What about my refund? If you are due a refund, the IRS typically sends it within 21 days of receiving your return. When yours does arrive, it may be smaller than last year, even if your financial life didn’t change much. That’s because a number of Covid-related tax breaks expired.
So far, the average refund paid was $2,878 for the week ending April 7, down from $3,175 at the same point in last year’s filing season.
Will I be audited?: The reasons and methods for auditing a taxpayer can vary — and many audits result in “no change,” meaning you don’t end up owing anything more to the IRS. But one thing is common for the vast majority of US tax filers: Audit rates are exceedingly low.
For filers reporting incomes between $50,000 and $200,000, only 0.1% of them were audited in 2020, according to the latest data from the IRS. Even for very high income filers, audit rates were quite low: Just 0.4% for those reporting income of between $1 million and $5 million; 0.7% for those with income between $5 million and $10 million; and 2.4% for returns with income over $10 million.
Looking ahead, the IRS commissioner noted in a press call that the agency will be using money from the Inflation Reduction Act to bolster its compliance efforts to focus more on auditing high-income individuals — defined as making $400,000 or more. As for filers with income below that level, he said he did not anticipate any change in the likelihood they would be audited.
Editor’s Note: Abigail Disney is an Emmy-winning documentary filmmaker, activist, and member of the Patriotic Millionaires. Her latest film, “The American Dream and Other Fairy Tales,” co-directed with Kathleen Hughes, made its world premiere at the 2022 Sundance Film Festival. Morris Pearl is the chair of Patriotic Millionaires, and former managing director of BlackRock. The opinions expressed in this commentary are their own. View more opinion on CNN.
CNN
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Tuesday is Tax Day in America, one of the most stressful days of the year, when many taxpayers will finally end their procrastination, file their federal returns, and hope for a refund from the IRS. But for many of the nation’s wealthiest, it’s just another Tuesday.
Tax Day isn’t just a filing deadline — it’s also an annual reminder that the ultra-rich exist in an entirely separate world when it comes to taxes. For us, the loopholes are bigger and the rates are sometimes lower. Meanwhile, the rich keep getting richer, with the wealth of billionaires in particular growing by more than $1.5 trillion over the last few years.
This status quo is unfair, but even more importantly, it’s unsustainable. Such high levels of inequality are pushing our economy and our democracy to their breaking points. That’s why we should examine how we can set our country up for long-term stability and prosperity. And we should start by ensuring that the ultra-rich pay more of what they owe the country that made their success possible.
There are three changes to the tax code that would help us do just that:
Right now, the US tax system values money over sweat. If you work hard for your money instead of earning it passively, you’re essentially penalized for it. People who earn a salary pay significantly higher tax rates on their income than wealthy investors who passively earn capital gains income.
Inheriting money is an even better deal. Thanks to former president Donald Trump’s 2017 tax law, the first $12.92 million (or $25.84 million for a married couple) is completely exempt from any estate tax, and the stepped-up basis loophole allows wealthy families to permanently erase millions in capital gains taxes by resetting the market value of those assets to their value at the time of the original owner’s death. With this, it becomes relatively simple for the rich to inherit tens, even hundreds of millions of dollars, and pay almost nothing in taxes. Someone working for that money, on the other hand, would pay over a third of it in federal income taxes.
Why do we have a tax code that says working people should be taxed more than wealthy investors and those who got rich just by virtue of being born into the right family? At the end of the day, money is money, whether you worked for it or whether you inherited it. As an heiress and an investor, we should not be paying lower tax rates than people who earn their money from working.
It’s time for the tax code to treat all income equally by taxing all capital gains over $1 million at the same rates as ordinary income, and replacing our loophole-ridden estate tax with a simpler inheritance tax that treats inherited wealth as income.
We can’t just focus on income, however, because many of the richest Americans earn basically no taxable income of any kind in a typical year. Capital gains are only taxed when assets are sold, so instead of selling them, the ultra-rich use their assets as collateral to borrow vast sums of money at extremely low interest rates to live on, and then declare little or even negative “income” on their tax forms. This “Buy, Borrow, Die” strategy is a major reason billionaires paid a lower effective tax rate over recent years than working-class families.
By rethinking what is taxable, we can get access to the trillions of dollars of billionaire wealth that is untouchable under our current tax structure. That’s why President Biden has proposed the Billionaire Minimum Income Tax, which would tax the unrealized capital gains of the wealthiest households and why others have proposed wealth taxes on billionaires.
Finally, one of the most straightforward changes needed is to simply tax the extremely rich more than the merely rich. Our income tax caps out at a top rate of 37% for any income over $578,125 (or $693,750 for married couples). No matter how much more someone makes, they’ll never pay more than 37% in federal income taxes.
While someone earning $600,000 is certainly making enough to live a very comfortable life, they’re in a different world than someone making $600 million a year. In order to reflect the real differences between the rich and the ultra-rich, we need to return to the top rates we had through the most prosperous decades of the 20th century and add significantly more tax brackets. They should reach up to 90% for people making more than $100 million a year.
These three changes certainly won’t fix all our country’s problems on their own, but they would go a long way in stopping the steady flow of our country’s wealth toward a smaller and smaller group of people, a change that would make both our democracy and our economy more stable. The tax code can be a powerful tool for both social and economic change. We just need to use it more effectively.
A line of Chicago mayors heavily courted Walmart over the last two decades, brushing aside community protests. And Walmart welcomed the opportunity to show cities it could be a strong corporate partner.
But now, Walmart is pulling back from Chicago.
The largest retailer in the country announced plans this week to close four of its eight stores in the city, citing growing financial losses. Three are in predominantly Black and low-income neighborhoods, and their closures with little warning mean residents — including elderly citizens and people without reliable transportation — will have to travel further to buy groceries and pick up their medications.
“These stores lose tens of millions of dollars a year, and their annual losses nearly doubled in just the last five years,” Walmart said. Despite years of different strategies, the company said, it did not see a route to profitability for these stores. Walmart, which made $20.6 billion in 2022, did not specify why losses were growing in Chicago.
City leaders “used a lot of political capital and their trust were questioned, Now it’s kind of like, ‘I told you so,’” said Chicago Alderman-Elect Ronnie Mosley, who will represent a Chicago ward where one of the Walmarts is set to close. His predecessor, who is retiring, was a major proponent of drawing Walmart to Chicago.
Mayors and key political leaders had pushed to draw Walmart, despite protests from small businesses, labor groups and community activists. Critics pointed to studies that suggested a Walmart presence could push out mom-and-pop stores and drive down wages, as it had in smaller towns.
But, at the time, officials argued opening Walmarts would provide jobs, economic development and convenient places to shop for affordable groceries and pharmacy services in some of the city’s low-income communities.
Meanwhile Walmart, which rose mainly in rural and suburban areas, also fought hard to enter Chicago. Walmart saw it as a twofold opportunity: broaden its customer base while proving to skeptical officials in other cities that it was a strong corporate partner.
The closures are another example of the shortcomings of local governments and even national political leaders betting on leading chains to provide key public services and fill gaps.
If government couldn’t provide for a populace in desperate need of jobs and fresh foods, the thinking went, for-profit corporations would.
But in Chicago, that’s not what happened. A 2012 study of Walmart’s impact in Chicago found businesses closer to Walmart were significantly more likely to close than similar businesses farther away — and the number of jobs lost by nearby retail competitors essentially offset the number of jobs created at the new Walmart stores.
This is a particular issue in predominantly minority, low-income areas that experience economic neglect, and other chains have recently shuttered stores in these areas as well.
Unlike local government, which is theoretically accountable to voters, companies answer onlyto their shareholders and don’t have an obligation to stay in communities if they aren’t making a profit.
Whether it’s handing over responsibility for providing public bathrooms to Starbucks and McDonald’s or vaccines and basic health services to CVS and Walgreens, the public is left vulnerable when these companies’ business priorities change or they close locations.
“We have asked business to solve problems that we don’t want government to solve anymore,” said Bryant Simon, a professor of history at Temple University who studies the role of Corporate America and government. “We’re happy to have them do it and then shocked when they act like a business again.”
A similar strategy to rely on national chains to help remedy so-called “food deserts” was a focus on the national level during the Obama administration. It too fell short.
Walmart, Walgreens
(WBA), SuperValu and other store executives joined Michelle Obama at the White House in 2011 to announce a pledge to open a combined 1,500 stores in communities that have limited access to nutritious food by 2016.
But that effort stalled. The Associated Press found in 2015 that leading chains built just 250 new supermarkets in these areas.
“The assumption there is a single player in the nation that will work in every market is proving to not be true,” said Liz Abunaw, who founded Forty Acres Fresh Market, a startup grocer, in response to the lack of fresh food options on Chicago’s West Side. “Even in Chicago, the solutions differ by neighborhood.”
Placing a big chain in the middle of a struggling neighborhood is not an effective strategy alone, she said, and more holistic solutions are needed, including improving housing, jobs and public transportation: “It’s not one thing. All of those things go together.”
There also can be unintended consequences to chains opening in neighborhoods. Companies sometimes open, small retailers close – and then the chain closes, leaving a bigger void in some cases than when it first came in.
“The idea that Walmart did the city a great favor by moving in is highly debatable,” said David Merriman, a professor of public policy, management and analytics at the University of Illinois Chicago and co-author of the study of Walmart’s presence in Chicago.
Instead of relying on large companies to strengthen local economies, some experts say, another solution could be designing policies that better support smaller, family-owned supermarkets, co-operatives, and farmers’ markets such as Yellow Banana and ChiFresh Kitchen in Chicago.
“Their loss is one of the main reasons that communities lack grocery stores and other basic retail in the first place,” Abunaw said.
Despite stiff resistance from unions, grassroots groups and some local leaders in Chicago, Walmart has been embraced by the city’s last three mayors as an economic development model.
In 2006, Chicago Mayor Richard M. Daley issued a rare veto to override a City Council bill that required big-box stores such as Walmart to pay workers a $10 minimum wage. In 2013, Mayor Rahm Emanuel cut the ribbon on a new Walmart in an underserved neighborhood, saying it was “another example of a company seeing an alignment of what is good for their bottom line with what is good for our neighborhoods.”
In 2020, Mayor Lori Lightfoot held a press conference with Walmart CEO Doug McMillon to announce the company would expand its investment in the city following local and national protests over George Floyd’s murder by police.
But the company struggled in Chicago. Its mammoth superstores, which are designed for people to drive to and make big shopping trips, have been less suited for city residents who tend to make smaller but more frequent trips to supermarkets.
Walmart tried opening smaller stores, known as neighborhood markets, that serve mostly groceries — but these lower profit margins than other merchandise like electronics or clothing. Walmart is closing neighborhood markets around the country, and three of the four stores closing in Chicago fall into that category.
In Chicago, Walmart is closing in both low-income and high-income areas, a sign that it’s struggling across the city. But it’s the stores in low-income areas that will feel the loss most.
“We are in an area where CVS and Walgreens have closed,” Alderman-Elect Mosley said. “Walmart has become the de-facto” store and the closure is “traumatizing.”
“Walmart is leaving and they may be doing what’s best for them,” he said. “Now I have to figure out with our community what’s best for us.”
