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  • Inside the Treasury Department team monitoring early economic warning signs as default threat looms | CNN Politics

    Inside the Treasury Department team monitoring early economic warning signs as default threat looms | CNN Politics

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    CNN
     — 

    Nearly five months before the US was projected to hit the debt ceiling, a small team inside the Treasury Department began alerting top officials to early effects already being felt in the US financial system.

    The cost of insuring US debt, as measured by the price of credit-default swaps, was rising – a sign that investors were beginning to view US bonds and other securities as increasingly risky.

    That early warning – and subsequent ones over the last month as the swaps pricing has surged – came out of the Treasury Department’s Markets Room and its eponymous team of nine financial analysts who are responsible for monitoring and analyzing global financial markets to inform the policy work of top Treasury Department and White House officials.

    As the US rapidly approaches a potential default date in early June, top US officials are increasingly relying on the Markets Room to monitor for signs of disruption in the financial markets.

    “In the same way that a doctor wants to understand the vital signs of a patient as they’re thinking about how to treat them, at Treasury keeping abreast of understanding the various ways in which the economy is healthy or unhealthy. And part of that is understanding the market,” Deputy Treasury Secretary Wally Adeyemo told CNN in an interview.

    “So, we’re spending a lot of time with them better understanding what the costs are today, in order to make sure that we’re in a position to share that information with Congress, in order to prevent us from getting into a position where for the first time in our history, we’re unable to pay all of our obligations on time.”

    That work begins each day before dawn, when staffers take turns waking up around 3:30 a.m. ET to compile data about overnight market developments and begin making calls to contacts working in European and Asian markets.

    At around 7 a.m. ET, those data and insights land in the inboxes of top policymakers at the White House and Treasury Department.

    At 9 a.m. ET, before the US markets open, Treasury Secretary Janet Yellen and her senior leadership team huddle virtually with the Markets Room and other key Treasury Department aides for a briefing on the state of the financial markets and issues to watch for that day.

    “Almost every American is influenced by what’s happening around the globe and global markets either through your 401(k), or your attempt to borrow money for your small business or for your home. So, this team of individuals, every morning, provides us a briefing and an update on what’s happening around the world,” Adeyemo said.

    In recent weeks, that daily briefing has heavily focused on reverberations of the debt limit standoff, from updates on auctions of Treasury bills to market reactions and commentary from market analysts and economists.

    Much of the rest of the day is spent monitoring developments in the financial markets and fielding inquiries from top policymakers at Treasury and the White House for analysis on those developments.

    And at the end of the day, the Markets Room also helps policymakers digest the biggest developments in the financial markets with another widely read one-page memo delivered after the US markets close and before the Asian markets open.

    Beyond the Treasury Department, a White House spokesperson said the unit’s twice-daily memos are “a valuable asset” for officials at the National Economic Council and Council of Economic Advisers.

    “Those offices also rely on the Markets Room’s real-time updates – either in memos or meetings – when more regular monitoring is warranted,” the spokesperson said.

    Officials say the Markets Room is focused on monitoring the global economy’s recovery from the pandemic-induced recession, lingering inflation and the trajectory of the global economy.

    Albert Lee, the Markets Room director, described the unit as an early warning system on the global financial system for top US policymakers.

    In the early days of the coronavirus pandemic, the team was among the first to sound alarm bells inside the federal government about early shocks in pockets of the financial system and predicting rate cuts from the Federal Reserve.

    The team also played a critical role during the banking crisis earlier this year, tracking the sharp selloff of stock and outflows of deposit at Silicon Valley Bank that ultimately triggered the bank’s collapse.

    As the Treasury Department acted to address the second-largest bank failure in US history and prevent any spillover effects in the banking sector, top Treasury Department officials leaned on the Markets Room team to track the feedback of their policy actions.

    “It was critically important for us to understand how markets were interpreting the actions that we took that made clear to the American people that your deposits were safe,” Adeyemo said. “We were monitoring signs of distress in the banking sector.”

    With one week until the government can potentially no longer pay its bills, the US stock market is only just beginning to show signs of concern about a potential default and Treasury officials say the team is focused on tracking further reactions from the stock market as well as the Treasury securities market.

    The stock market’s reaction has, up until now, been relatively muted – especially as compared to the 17% drop the S&P 500 suffered amid the 2011 debt ceiling crisis. But Treasury officials say volatility in the securities market is already affecting the federal government, raising the cost to borrow.

    Yields on short-term Treasury securities have surged and recent auctions for securities are leaving a heftier price tag for the federal government, which Adeyemo said recently incurred $80 million in additional costs for a recent auction of Treasury bills.

    “So, the cost of borrowing has already gotten more expensive when it comes to us borrowing in the short term for the US government,” Adeyemo said. “So as the debt limit manufactured crisis goes on, and costs go up for the government, it also means that costs will go up for the American people as well.”

    Adeyemo declined to disclose what contingencies are being prepared should the US default. But when the US faced a similar standoff on the debt in 2011, Federal Reserve officials and Treasury Department officials quietly prepared a plan to prioritize payments on US debt and delay paying other government bills and obligations, like Social Security and payments to veterans, according to transcripts of a central bank meeting released in 2017.

    “The most important thing for the American people, for our country, for our credibility, not only with our creditors, but with the American people is to pay all of our bills on time. That’s what our system is built to do,” Adeyemo said. “I’ve spent a good part of a decade working here at the Treasury Department. What I can tell you is that there’s no plan that would allow us to meet all of our commitments other than Congress, raising the debt limit.”

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  • Manhattan district attorney urges court to reject Trump bid to move criminal case | CNN Politics

    Manhattan district attorney urges court to reject Trump bid to move criminal case | CNN Politics

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    CNN
     — 

    The Manhattan District Attorney’s office is arguing that former President Donald Trump’s criminal case involving hush money payments to adult film star Stormy Daniels should not be moved to federal court because it had nothing to do with Trump’s official duties as president.

    In a court filing late Tuesday, Manhattan District Attorney Alvin Bragg, a Democrat, used Trump’s own statements against him, citing Trump’s 2018 tweets about the hush money payments to Daniels as a “private contract” and “private agreement.” The filing also pointed to Trump’s then-lawyer Rudy Giuliani saying in 2018 that the payment “was made to resolve a personal and false allegation.”

    Trump was charged in April with 34 felony counts of falsifying business records over the repayments to then-lawyer Michael Cohen for hush money payments made during the 2016 campaign to women who claimed they had extramarital affairs with Trump, which he denies. Trump pleaded not guilty to all charges.

    Earlier this month, Trump’s attorneys sought to move the criminal case against Trump from New York into federal court, arguing the Manhattan district attorney’s charges against Trump were tied to his duties as president.

    But the district attorney’s filing urges a federal judge to reject that bid, saying that the payments at question related to his personal business and were made to “conceal criminal conduct that largely occurred before his inauguration.”

    “The objective of the alleged conduct had nothing to do with defendant’s duties and responsibilities as President,” the Manhattan district attorney’s office wrote. “Instead, the falsified business records at issue here were generated as part of a scheme to reimburse defendant’s personal lawyer for an entirely unofficial expenditure that was made before defendant became president.”

    The motion from Trump’s attorneys to move the criminal case out of New York has not paused the case there. Last week, Trump appeared virtually at a hearing in which Judge Juan Merchan read Trump an order about what he can and cannot say publicly about the case and evidence that his legal team will receive from prosecutors to prepare for trial.

    At that hearing, Merchan set a trial date of March 25, 2024, potentially setting the trial to occur during the middle of the Republican presidential primary season early next year.

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  • Golf’s new Saudi deal presents questionable political, business and sporting realities | CNN Politics

    Golf’s new Saudi deal presents questionable political, business and sporting realities | CNN Politics

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    CNN
     — 

    The PGA Tour once advertised its brightest stars with the catch phrase “These guys are good.” A better slogan might now be “These guys are even richer.”

    In a bombshell announcement so staggering that many golf fans thought it was fake at first, the venerable PGA Tour unveiled a partnership Tuesday with Saudi Arabia’s public investment fund, the financier of its sworn rival LIV Golf – a breakaway circuit that split the sport and seeded feuds among its top players.

    The deal means that the PGA Tour – built on the image of quintessentially American Arnold Palmer, who epitomized post World War II US values – will now rest atop a pile of money put up by the regime that the US blamed for the murdering and dismemberment of Washington Post columnist Jamal Khashoggi, that was home to 15 of the 19 hijackers of September 11, 2001, attack, and that has frequently been condemned by Washington for infringing women’s rights.

    It is beyond doubt that the new reality of pro-golf will mean a better spectacle for fans since it will end the split between the two rival tours and will also fold in the DP World Tour (formerly known as the European tour) and mean the brightest stars will play one another more often.

    For many sports fans in the US and elsewhere, that’s just fine. They like to plop down on the couch and watch their favorite golfer on the back nine on Sunday or their Gulf-owned Premier League team on TV. Who can begrudge them one oasis free from bitter, tribal modern politics?

    And the deal is also undeniably a great piece of business, assuming PGA Tour players accept it. Global golfers stand to win a lot more money, various tours will be invigorated and Saudi Arabia’s government and its ruthless leader, Crown Prince Mohammed bin Salman (MBS), get to be associated with one of the planet’s most prestigious year-round sporting properties. And all pending litigation between LIV Golf and the PGA Tour was also mutually ended under the new agreement.

    But for others, Tuesday’s peace deal on the links raises painful moral issues. It also exposes top PGA leaders – who had blasted golfers who defected to LIV – to accusations of hypocrisy and reflects the way modern professional sports are hostage to the highest bidders. This can only pose uncomfortable questions to fans whose values and history clash with those of distant and sometimes politically dicey entities who effectively own their teams and top stars.

    PGA Tour Commissioner Jay Monahan, for instance, had some explaining to do – not least to the tour’s players gathered at the Canadian Open this week after many tweeted that they had no advance notice of the deal. Monahan had played the 9/11 card last year at the same event, saying that two families that were close to him had lost loved ones in the worst terror attack on American soil, adding, “I would ask any player that has left, or any player that would ever consider leaving, have you ever had to apologize for being a member of the PGA Tour?”

    Now Monahan stands to be the effective supremo of global golf, save for the four majors – the sport’s most prestigious tournaments – aided by a gusher of Saudi cash.

    9/11 Families United effectively accused Monahan of using the tragedy as leverage in a business deal to reunite golf. He “co-opted the 9/11 community last year in the PGA’s unequivocal agreement that the Saudi LIV project was nothing more than sports washing of Saudi Arabia’s reputation,” the group said in a statement. “But now the PGA and Monahan appear to have become just more paid Saudi shills, taking billions of dollars to cleanse the Saudi reputation so that Americans and the world will forget how the Kingdom spent their billions of dollars before 9/11 to fund terrorism, spread their vitriolic hatred of Americans, and finance al Qaeda and the murder of our loved ones.”

    Monahan was asked about his reversal after what he said was a “heated” meeting with PGA Tour players on Tuesday.

    “I recognize that people are going to call me a hypocrite,” he said. “Anytime I said anything, I said it with the information that I had at that moment, and I said it based on someone that’s trying to compete for the PGA TOUR and our players.”

    Major champions who jumped to the rival circuit last year like Dustin Johnson, Phil Mickelson, Patrick Reed and Cam Smith might also now wonder whether their PGA tour brethren will face the same grilling over human rights that they had to endure at the time.

    One very famous golfer was delighted by the deal and seemed keen to claim some reflected credit – former President Donald Trump. The current front-runner for the 2024 GOP nomination associated himself with LIV after the PGA Tour and other golf governing bodies distanced themselves from him over his radioactive political reputation. Trump has hosted several tournaments at his courses for LIV – a circuit that sits well with his record of refusing to sever links with the Saudis over the murder of Khashoggi in 2018, reasoning that the Saudis were great customers of the US.

    “A big, beautiful, and glamorous deal for the wonderful world of golf. Congrats to all!!!” Trump wrote in block capital letters on his Truth Social platform.

    Some defenders of LIV golfers have pointed out that the players were only making a choice to prioritize personal interests over moral ones in partnering with the Saudis – a calculus that mirrored decades of US foreign policy. Indeed, President Joe Biden had called on the 2020 campaign trail for the kingdom to be treated as a “pariah” because of Khashoggi’s murder only to travel to the kingdom as president to fist-bump MBS when he needed a spike in oil price production to bring down American gas prices.

    On Tuesday, after the LIV/PGA partnership was announced, US Secretary of State Antony Blinken sat down for talks with the Crown Prince in Riyadh.

    The idea that politics and sport shouldn’t mix has always been quaint. The Olympics and the World Cup are two of the planet’s most political spectacles after all. And modern sport has long run on money as monster TV rights contracts translate into huge salaries for top soccer players, Formula One Drivers, NBA stars and the top names in other sports.

    But Tuesday’s LIV/PGA Tour agreement lays bare questions of morality so starkly precisely because of the way golf has sold itself. In a sport where players call penalties on themselves, and commentators idolize top players in whispered tones as paragons of gentlemanly conduct, patriotism and family values, the origin of the sport’s new financial lifeline is glaring.

    The PGA Tour and Saudi partnership may be the most prominent example yet of the phenomenon known as sports washing, whereby an authoritarian nation seeking to buff up its image – despite serious criticism over its political system and human rights performance – woos the world’s top sporting stars. China was accused of such an agenda with its 2008 and 2022 Summer and Winter Olympics, where attempts at political activism largely fizzled under its repressive rule. The Qatar World Cup last year was another example of a nation that used its financial muscle to present a new image to the world. Various controversies during the tournament over LGBTQ rights and the plight of workers who built the stadiums undercut global governing body FIFA’s pretensions to inclusion.

    The Saudis, Qataris and others are using their oil wealth to buy themselves a foothold among the world’s most powerful nations and to create tourism, entertainment and sporting legacies to sustain them when their reserves of carbon energy are depleted.

    This mirrors a global shift in power and especially financial muscle – from the capitals of Western Europe to new epicenters in the emerging economies of the Middle East, India and China. Soccer, like golf, is taking its share of the cash. Traditional working class football clubs knitted into their communities for decades in the UK, for example, now suddenly find themselves owned by foreign energy magnates. Premier League giant Manchester City was bought by a United Arab Emirates-led group. And Newcastle United is owned by a Saudi Arabia-led consortium, forcing fans to consider (or not) the ethical dimensions of their support for their hometown clubs. And global cricket has been transformed by the Indian Premier League, which pays lavish salaries in a shortened form of the game.

    One of the top names in soccer, Cristiano Ronaldo, is playing out the twilight of a glorious career spent at Europe’s top clubs in the up-and-coming Saudi league for a massive salary. And on Tuesday, Saudi team Al-Ittihad announced the signing of Real Madrid and French forward Karim Benzema, completing a sporting double whammy for the kingdom.

    There are as many sporting questions about the PGA Tour/LIV Golf partnership that remain unanswered. The partnership combines the Saudi Public Investment Fund’s golf-related commercial businesses and rights (including LIV Golf) with the commercial businesses and rights of the PGA Tour and DP World Tour into a new, collectively owned, for-profit entity. A spokesman for the PGA tour told CNN that the deal is not a merger.

    “After two years of disruption and distraction, this is a historic day for the game we all know and love,” Monahan said, describing a “transformational partnership” that would “benefit golf’s players, commercial and charitable partners and fans.”

    Yasir Al-Rumayyan, governor of the Saudi Public Investment Fund, told CNBC he expected the partnership to be finalized within weeks and revealed, in a stunning move, that he had told LIV figurehead and Hall of Famer Greg Norman about the deal only moments before going on air.

    LIV lured some of the PGA Tour’s top stars with massive signing bonuses and huge purses at substantially fewer events than the PGA tour, prompting the premier US circuit to unveil its own select “designated events” with upped prize money. The two sides were locked in bitter legal battles that have now been resolved.

    It remains unclear, however, what steps LIV stars will have to take to potentially be able to return to events like The Players Championship, currently hosted on the PGA tour from which they were banned.

    Then there is the question of how current PGA Tour members will respond.

    Former British Open Champion Collin Morikawa tweeted, “I love finding out morning news on Twitter.”

    The sudden announcement also did not specify what would happen to LIV tour events, which have struggled to draw a strong TV audience, beyond this season. Monahan’s announcement did hint that the new entity was committed to the new format of team events that has been introduced by LIV, to compliment golf’s traditional reliance on individual tournaments.

    The golfer with the widest smile on Tuesday was probably Mickelson. The three-time Masters champion took the most heat for deserting the PGA tour for a reported massive payday, and was one of the most outspoken supporters of LIV – a breakaway he argued was a way to revolutionize the structure of professional golf and to secure more rewards for players.

    Mickelson was also open about the reality of partnering with the Saudis, calling them “scary m*therf**kers to get involved with,” in an interview with golf journalist Alan Shipnuck that he later claimed was off the record. Shipnuck has written that he offered Mickelson no such agreement.

    On Tuesday, Mickelson simply tweeted: “Awesome day today,” with a smiley sunshine emoji.

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  • Microsoft faces off against US government over Activision deal, with top execs set to testify | CNN Business

    Microsoft faces off against US government over Activision deal, with top execs set to testify | CNN Business

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    CNN
     — 

    Microsoft

    (MSFT)
    and the video game giant Activision Blizzard

    (ATVI)
    will face off Thursday against the US government in a high-stakes battle over one of the largest technology acquisitions in history.

    The showdown in federal court will have the CEOs of both companies taking the stand to defend their $69 billion merger against claims that the combination could violate US antitrust law and harm millions of consumers.

    The outcome of the fight will shape the future of the multibillion-dollar games industry. It will also impact enormously popular gaming franchises such as “Call of Duty” and “World of Warcraft,” which Activision owns and would be transferred to Microsoft under the deal.

    Also testifying will be the top financial executives from both companies; senior leaders from Microsoft’s Xbox division; the CEO of Microsoft Gaming, Phil Spencer; and a vocal critic of the deal, Sony gaming CEO Jim Ryan.

    The days-long affair begins Thursday and is scheduled to run through next week.

    In bringing the case, the Federal Trade Commission is asking a US district court judge for an injunction that would temporarily halt the deal. That would keep the companies from closing their merger, at least until the FTC’s in-house court rules in a separate proceeding on whether the acquisition is anticompetitive.

    But this week’s fight over a preliminary injunction may prove decisive for the deal as a whole. Microsoft has said that a victory for the FTC at this stage “will effectively block the transaction” overall.

    In this hearing, the FTC does not need to prove that the deal is anticompetitive. It just needs to show that the agency would be likely to succeed in doing so if the case moves ahead, and that otherwise its ability to enforce US antitrust law would be harmed.

    The clash comes as Microsoft and Activision face down a contractual July 18 deadline to consummate the deal. Failure to close, or any permanent court order to block the merger, could force Microsoft to pay a $3 billion breakup fee to Activision, according to the deal’s terms.

    The FTC lawsuit has put Microsoft under the harshest antitrust scrutiny in the US in more than two decades. It also could be a crucial test for the FTC at a time when it’s trying to rein in the tech industry broadly, with mixed success.

    In its initial challenge to the merger in its in-house court last year, the FTC alleged the deal would harm competition by turning Microsoft into the world’s third-largest video game publisher — allowing it to raise video game prices with impunity, restrict Activision titles from rival platforms and harm game quality and player experiences on consoles and gaming services.

    Some of those concerns have also been raised internationally. The UK government has challenged the acquisition, and the New Zealand government on Tuesday warned that the deal could be anticompetitive.

    Microsoft has sought to address the concerns by hammering out multi-year licensing agreements with competitors such as Nintendo and Nvidia to ensure that their platforms will continue to receive popular titles if the deal goes through.

    The company has also put forth an 11-point pledge to keep its platforms open, a commitment that applies not only to the Activision Blizzard deal but to virtually all of Microsoft’s gaming business going forward.

    Last month, Microsoft said the European Union would require it to license Activision games “automatically” to competing cloud gaming services as a condition of allowing the merger to proceed in the EU. That commitment, Microsoft said, “will apply globally and will empower millions of consumers worldwide to play these games on any device they choose.”

    Although EU regulators have said the concession addresses their concerns, officials in the US and the UK are continuing with their legal opposition to the deal.

    The standoff particularly focuses attention on FTC Chair Lina Khan, a tech industry critic who has argued for litigating difficult cases and for introducing novel legal theories to help adapt US antitrust law to the digital age.

    Khan won a significant victory last year when the FTC forced Nvidia to abandon its attempted acquisition of the chipmaker Arm. The deal would have combined two companies in adjacent industries in what is known as a vertical merger, a type of deal that is rarely blocked in the United States.

    But Khan also suffered a setback when the FTC unsuccessfully tried to block Facebook-parent Meta from acquiring Within Unlimited, a virtual reality startup. The FTC had argued that the acquisition was an attempt by Meta to quash competition in the nascent VR industry, but earlier this year, a federal judge declined to issue a preliminary injunction of the kind the FTC now seeks against Microsoft. The FTC dropped its case against Meta soon after.

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  • Ohio’s showdown over abortion rights intensifies as group files signatures for ballot measure | CNN Politics

    Ohio’s showdown over abortion rights intensifies as group files signatures for ballot measure | CNN Politics

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    CNN
     — 

    Ohio is poised to become the next major abortion battleground after groups seeking to enshrine abortion rights in the state’s constitution on Wednesday submitted hundreds of thousands of petition signatures to the secretary of state’s office.

    If certified, those 710,000 signatures – nearly 300,000 more than state law requires – would place the proposed amendment on ballots in November alongside municipal and school board elections across the state.

    The statewide vote would come the year after two of Ohio’s neighboring states – deep-red Kentucky and the political battleground of Michigan – supported abortion rights in their own ballot measures.

    It would position Ohio, traditionally a presidential swing state that has shifted in the GOP’s favor in recent years, as the latest test of voters’ attitudes ahead of a 2024 presidential election in which the debate over abortion rights could play a central role in both the Republican primary and the general election.

    “We know that Ohioans, just like our neighbors in Michigan and Kentucky – when they have the opportunity to vote for abortion access, they will,” said Lauren Blauvelt, vice president of Planned Parenthood Advocates of Ohio.

    Abortion rights advocates on Wednesday said they were pulled into politics in the wake of the US Supreme Court’s decision last June to overturn Roe v. Wade’s long-standing federal abortion protections and return the issue to the states.

    “I was never very political before all this started last year,” said Dr. Aziza Wahby, a Cleveland dermatologist who has become active over the last year with Ohio Physicians for Reproductive Rights, a group that was part of the effort to gather signatures. “This has made me pay more attention and I think it will do the same for others.”

    The proposed amendment in Ohio would ensure “every individual has a right to make and carry out one’s reproductive decisions.” It could make Ohio the only state with a ballot measure on abortion rights this year.

    Local officials have until July 20 to verify the signatures, with Ohio Secretary of State Frank LaRose having final approval to place the issue on this fall’s ballots by July 25.

    Before the November election, though, is another key vote: an August 8 special election set by Ohio’s Republican-dominated legislature, in which voters will decide whether to raise the threshold for amending the state constitution from the current simple majority to 60%.

    The debate over the constitutional amendment and the change to the amendment process has galvanized both sides of the abortion fight.

    After filing U-Haul truckloads of petition signatures Wednesday, abortion rights advocates complained that the special election was slated for a moment when families will be wrapping up summer vacations and preparing for the start of school – a period when the state’s voters are not used to casting ballots.

    “And they’re doing that on purpose because they know that their agenda is not the agenda of Ohioans,” said Kellie Copeland, the executive director of Pro-Choice Ohio.

    Amy Fogel, who said she became awakened to politics during the Trump era and joined the grassroots group Red Wine and Blue, has spent months helping collect signatures for the citizen-led initiative for the November ballot. She said she was “absolutely heartbroken” when the August special election was approved by the Republican supermajority in the statehouse.

    “It was just a blatant power grab to take away the majority vote of Ohioans,” Fogel said.

    She said she and other volunteers would not be deterred by the new hurdle.

    “We started out telling people to vote in November and now we have to tell them to make sure you plan an absentee ballot, vote early, or show up at the polls on August 8,” Fogel said. “You have to vote ‘No,’ to protect the Ohio constitution and majority vote in August and then ‘Yes,’ in November.”

    It is confusing, she said, by design.

    Amy Natoce, the press secretary for Protect Women Ohio, the coalition working to defeat the abortion rights ballot measure in November, dismissed suggestions that a special election in August was in any way undemocratic because of concerns over historically low voter turnout in the summer.

    “There is no time like the present to protect Ohio’s constitution,” Natoce said in an interview. “Ohioans should be reminded of the fact that this is allowing them to determine how their constitution is amended. We’ve seen the other side saying one person, one vote, this takes away the people’s vote. Not at all.”

    For the next month, both campaigns will be unfolding across Ohio – on “Issue 1,” to raise the threshold of support needed to change the constitution, and on the November ballot measure on abortion. From door-to-door canvassing to a multi-million dollar television ad campaign, both sides are intensifying their efforts ahead of the August and November elections.

    “We’re going to continue in all 88 counties across Ohio,” Natoce said. “But we have to move ahead as if it will be on the ballot in November.”

    Two former Republican governors, Bob Taft and John Kasich, have come out against the August 8 special election, saying such a consequential change to state law shouldn’t happen during a low-turnout summer election.

    “I just think it’s a major mistake to approve or disapprove such a change at the lowest-turnout election that we have,” Taft said at a forum in Dayton last week. “This is a kind of change that really needs to be considered by all the people who go out and vote in a presidential election.”

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  • Judge blocks Arkansas law criminalizing libraries and bookstores for providing ‘harmful’ books to minors | CNN Politics

    Judge blocks Arkansas law criminalizing libraries and bookstores for providing ‘harmful’ books to minors | CNN Politics

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    CNN
     — 

    A federal judge on Saturday temporarily blocked portions of an Arkansas law that would have made it a crime for librarians and bookstores to provide minors with materials deemed “harmful” to them.

    The law, signed by Republican Gov. Sarah Huckabee Sanders in March, would have held librarians and book vendors criminally liable for knowingly making available to minors material that would appeal “to a prurient interest in sex.” Under the law, the material would also have to lack “serious literary, scientific, medical, artistic, or political value” and be “patently offensive” under community standards.

    The law, known as Act 372, would have taken effect Tuesday but will now remain blocked while the case plays out.

    A group of libraries, librarians, several bookstores and publishing groups – including the Arkansas Library Association and the Central Arkansas Library System – filed a lawsuit last month arguing that a section of the law violated the First Amendment. The plaintiffs also challenged another section of the law that would have allowed individuals to challenge libraries over a material’s “appropriateness.”

    The plaintiffs argued that the law could make way for the removal of libraries’ “young-adult” and “general” collections with sexual content. They also said it could even lead to a ban of all persons under the age of 18 from entering public libraries and bookstores, due to “the risk of endless criminal prosecution.”

    Providing banned materials under the law to a minor would be a Class A misdemeanor and punishable by up to a year of jail or a $2,500 fine.

    US District Judge Timothy L. Brooks of the Western District of Arkansas, an Obama appointee, ultimately agreed in his preliminary injunction, citing concerns about potential violations of the First and 14th amendments.

    He described the law’s definition of “appropriateness” as “fatally vague,” arguing that it would be too challenging to enforce the law without infringing on constitutionally protected speech. Material deemed “harmful” for the youngest minors may be appropriate for the oldest minors or adults, Brooks said.

    A spokeswoman for Sanders said the governor continues to support the law despite the ruling.

    “The governor supports laws that protects kids from having access to obscene content and the idea that Democrats want kids to receive material that is literally censored in Congressional testimony is absurd and only appropriate in the radical left’s liberal utopia,” Sanders communications director Alexa Henning said in a statement to CNN.

    The ruling is subject to appeal. CNN has reached out to Arkansas Attorney General Tim Griffin, a Republican, regarding potential next steps.

    The American Civil Liberties Union of Arkansas, which represented some of the plaintiffs, welcomed the judge’s injunction.

    “It’s regrettable that we even have to question whether our constitutional rights are still respected today. The question we had to ask was – do Arkansans still legally have access to reading materials?” Holly Dickson, the executive director of ACLU Arkansas, said in a statement. “Luckily, the judicial system has once again defended our highly valued liberties. We are committed to maintaining the fight to safeguard everyone’s right to access information and ideas.”

    Dickson previously called Act 372 “an Arctic breeze on librarians across Arkansas.”

    The plaintiffs included 17-year-old Hayden Kirby, who said in a statement that the law would limit her ability to “explore diverse perspectives.” Kirby said she spent time in the library every day throughout middle school.

    “To restrict the spaces I’ve accessed freely throughout my life is outrageous to me,” she previously said in a statement. “I want to fight for our rights to intellectual freedom and ensure that libraries remain spaces where young Arkansans can explore diverse perspectives.”

    The American Library Association said in a report earlier this year that there were 1,269 demands to censor library books and resources across the country in 2022, marking the highest number of attempted book bans since the association began compiling the data more than 20 years ago.

    Free speech organization PEN America found book bans rose during the first half of the 2022-2023 school year, in large part due to state laws in Texas, Florida, Missouri, Utah and South Carolina – which accounted for almost a third of the bans, according to the report from April.

    A new law signed in Texas last month banning books containing sexual content that is “patently offensive” was decried by opponents as potentially harmful to childrens’ education.

    Last month, President Joe Biden announced he plans to appoint a new federal coordinator to address the increase in book bans enacted across different states.

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  • How Kyrsten Sinema’s decision makes Democrats’ 2024 Senate map tighter | CNN Politics

    How Kyrsten Sinema’s decision makes Democrats’ 2024 Senate map tighter | CNN Politics

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    CNN
     — 

    Arizona Sen. Kyrsten Sinema decided to shake up the political world on Friday by becoming an independent. The former Democrat is still caucusing with the party in the Senate, so the Democratic caucus still has 51 members. Now, instead of 49 Democrats and two independents within their ranks, the caucus has 48 Democrats and three independents.

    But that simple math hides a more clouded picture for Democrats and for Sinema herself. Sinema’s interests are no longer necessarily the Democrats’ best interests in the next Congress, and the 2024 Senate map became even more complicated for Democrats with Sinema’s decision.

    To be clear, Sinema has always been a thorn in the Democrats side during her time in Congress. Over the last two years, Democrats have had to almost always make sure that any bill or nomination had Sinema’s support to have any chance of passing. That’s the math when you have only 50 Senate seats in a 100-seat chamber. A lot of bills and nominations were never voted on without Sinema and Manchin’s backing.

    From 2013 (Sinema’s first term in Congress) to 2020, Sinema voted against her party more than almost any other member of Congress. She stayed with the party about 69% of the time on votes where at least one half of the Democrats voted differently than half of Republicans. The average Democrat voted with their party about 90% of the time on these votes.

    It’s quite possible that Sinema’s percentage of sticking with the party will lower now that she is an independent. Consider the example of former Sen. Joe Lieberman. The longtime Democrat won reelection as a third-party candidate in 2006, after losing the Democratic primary to a left-wing challenger (the now fairly moderate Connecticut Gov. Ned Lamont)

    Relative to the average Senate Democrat, Lieberman voted with the party 10 points less of the time after becoming an independent than he had in his last term as a Democrat. If that happens with Sinema, she’ll become even more conservative than West Virginia’s Joe Manchin (the most conservative member of the Democratic caucus).

    This would make sense because the incentive structure is now very different for Sinema. Ahead of a 2024 reelection campaign, she no longer has to worry about winning a Democratic primary. Sinema has to worry about building a coalition of Democrats, independents and Republicans. That is far more difficult to do if you’re seen as too liberal.

    Indeed, the big reason Sinema became an independent is because it would have been very difficult to win a Democratic primary. Her approval rating among Arizona Democrats in an autumn 2022 CES poll stood at just 25%. A number of Democrats (e.g. Rep. Ruben Gallego and Rep. Greg Stanton) were already lining up to potentially challenge her in a primary.

    A question now is whether Sinema’s decision to become an independent will dissuade some of those Democrats from running. The idea being that Sinema still caucuses with the Democrats, and Democrats wouldn’t want to split the Democratic vote in a general election allowing a Republican to win in a purple state like Arizona.

    It’s an interesting bet from Sinema. After all, Democrats usually don’t run a candidate against independent Sen. Bernie Sanders in Vermont. The Democrats who run against independent Sen. Angus King in Maine have not gained traction in recent elections. Don’t forget the aforementioned Lieberman won as a third-party candidate.

    The electoral math structure was and is totally different in these circumstances, however. Sanders wouldn’t attract a left-wing Democratic challenger because he is already so progressive. Lieberman declared his third-party candidacy after the primary, so Republicans didn’t have time to find a well-known challenger. Republicans also knew that Lieberman, who was an ardent supporter of the Iraq War, was probably the best they could hope for in the deeply Democratic state of Connecticut.

    This leaves the King example. King, like Sinema, is a moderate from not a deeply blue or red state. There’s just one problem for Sinema in this analogy: King is popular. He had previously won the governorship twice as an independent and has almost always sported high favorables.

    Sinema is not popular at all. The CES poll had her approval rating below her disapproval rating with Democrats, independents and Republicans in Arizona. Sinema’s overall approval stood at 25% to a disapproval rating of 58%. Other polling isn’t nearly as dire for Sinema, but the average of it all has her firmly being more unpopular than popular.

    Put another way, Sinema’s current numbers are probably not going to scare off many challengers from either the Democratic or Republican side. Additionally, there’s zero reason for Democrats to cede the ground to Sinema because it would keep a Republican from winning. It isn’t clear at all that Sinema can win as an independent.

    What Sinema’s move did accomplish is that it made the electoral math a lot more complicated in Arizona and therefore nationally. Having two people in the race who are going to caucus with the Democratic Party likely makes it more difficult for the Democrats to win.

    One potential worrisome example for Democrats in a purple state (at least then) was the 2010 Florida Senate race. Then Republican Gov. Charlie Crist decided to run as an independent after it became clear he wouldn’t beat the more conservative Republican Marco Rubio in a Republican primary. Crist, who said he would caucus with the Democrats, split the Democratic vote with then Rep. Kendrick Meek, and Rubio cruised to a win.

    I should point out that Democrats certainly have a chance. The 1968 Alaska Senate race, for example, featured two Democrats (Mike Gravel and then Sen. Ernest Gruening as write-in). Gravel won in the state which Republican Richard Nixon carried, too, by a few points.

    In 2024, Arizona Republicans could nominate an extreme candidate that flames out. They just lost every major statewide race in 2022 because of who they nominated.

    Don’t dismiss the possibility too that Sinema could win like Harry Byrd did in the 1970 Virginia Senate election when both parties nominated candidates. Maybe voters will like Sinema’s new independent registration.

    Sinema also could find herself flaming out when running in the general election without a major party backing her like Gruening did in 1968 or then Sen. Jacob Javits in the 1980 New York Senate race.

    We just don’t know.

    All that said, the Democrats already have a difficult map heading into 2024. Depending on whether the Democrats win the presidency (and have a Democratic vice president who can break Senate ties), they can afford to lose zero to one Senate seats and maintain a majority.

    The vast majority, 23 of the 34, senators up for reelection in 2024 caucus with the Democrats. An abnormally large number (7) represent states Republican Donald Trump won at least once. This includes Arizona.

    With Sinema’s break from the Democratic party, the road is, if nothing else, curvier for Democrats.

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  • St. Louis school shooter had an AR-15-style rifle, 600 rounds of ammo and a note saying ‘I don’t have any friends. I don’t have any family,’ police say | CNN

    St. Louis school shooter had an AR-15-style rifle, 600 rounds of ammo and a note saying ‘I don’t have any friends. I don’t have any family,’ police say | CNN

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    CNN
     — 

    The 19-year-old gunman who killed two people and wounded several others at his former high school left a note saying his struggles led to “the perfect storm for a mass shooter,” St. Louis police said.

    Orlando Harris graduated from Central Visual and Performing Arts High School last year and returned Monday with an AR-15-style rifle, over 600 rounds of ammunition and more than a dozen high-capacity magazines, St. Louis police Commissioner Michael Sack said.

    Harris died at a hospital after a gun battle with officers.

    Investigators found a handwritten note in the car Harris drove to the school. Sack detailed some of the passages:

    “I don’t have any friends. I don’t have any family. I’ve never had a girlfriend. I’ve never had a social life. I’ve been an isolated loner my entire life,” the note said, according to Sack. “This was the perfect storm for a mass shooter.”

    Given the gunman’s extensive arsenal, the tragedy could have been “much worse,” the police chief said.

    Authorities credited locked doors and a quick law enforcement response – including by off-duty officers – for preventing more deaths at the school.

    But the shooter did not enter a checkpoint where security guards were stationed, said DeAndre Davis, director of safety and security for St. Louis Public Schools.

    Davis also said the security guards stationed in the district’s schools are not armed, but mobile officers who respond to calls at schools are.

    “For some people that would cause a stir of some sort,” Davis said Tuesday. “For us, we thought it’s best for our officers, for the normalcy of school for kids, to not have officers armed in the school.”

    Student Alexandria Bell, 15, and teacher Jean Kuczka, 61, were gunned down in the attack.

    One of the teacher’s colleagues, Kristie Faulstich, said Kuczka died protecting her students.

    During the rush to evacuate students from the school, “One student looked at me and she said, ‘They shot Ms. Kuczka.’ And then she said that Ms. Kuczka had put herself between the gunman and the students,” Faulstich said.

    Jean Kuczka

    Kuczka was looking forward to retiring in just a few years, her daughter Abigail Kuczka told CNN.

    Alexandria was looking forward to her Sweet 16, her father Andre Bell told CNN affiliate KSDK.

    “It’s a nightmare,” Bell said. “I am so upset. I need somebody – police, community folks, somebody – to make this make sense.”

    He joins a growing list of parents grappling with the reality of their child being killed at school.

    Across the country, at least 67 shootings have happened on school grounds so far this year.

    As the shooting unfolded in St. Louis, a Michigan prosecutor who just heard the guilty plea of a teen who killed four students last fall said she was no longer shocked to hear of another school shooting.

    “The fact that there is another school shooting does not surprise me – which is horrific,” Oakland County Prosecutor Karen McDonald said.

    “We need to keep the public and inform the public … on how we can prevent gun violence. It is preventable, and we should never ever allow that to be something we just should have to live with.”

    Students grieve near Central Visual and Performing Arts High School, where two people were killed.

    Bell, the father of the slain teen, said he’s struggling to get answers about what happened.

    “I really want to know: How did that man get inside the school?” he told KSDK.

    Authorities have said the doors were locked. But the St. Louis police commissioner declined to detail how the shooter got in.

    “I don’t want to make this easy for anybody else,” Sack said.

    The gunman didn’t conceal his weapon when entering the school, Sack said.

    “When he entered, it was out … there was no mystery about what was going to happen,” the commissioner said. “He had it out and entered in an aggressive, violent manner.”

    Faulstich said school’s principal came over the intercom and used the code phrase “Miles Davis is in the building” to let faculty know an active shooter was in the building.

    “I instantly but calmly went to lock my door and turn off the lights,” the teacher said. “I then turned to my kids and told everyone to get in the corner.”

    Within a minute of locking her second-floor classroom door, Faulstich said, someone started “violently jostling the handle, trying to get in.”

    “I absolutely commend my students for their response,” Faulstich said. “Even in the moments when they were hearing gunfire going on all around they stood quiet and I know they did it to keep each other safe.”

    Adrianne Bolden, a freshman at the school, told KSDK that students thought the school was conducting a drill – until they heard the sirens and noticed their teachers were scared.

    “The teacher, she crawled over and she was asking for help to move the lockers to the door so they can’t get in,” Bolden said. “And we started hearing glass breaking from the outside and gunshots outside the door.”

    Sophomore Brian Collins, 15, suffered gunshot wounds to his hands and jaws. He escaped by jumping from a classroom window onto a ledge, his mother VonDina Washington said.

    “He told me they heard an active shooter notification over the intercom so everyone in the class hid,” Washington said. According to her son, the gunman then came into the classroom and fired several shots before leaving.

    After the gunman left the third-floor classroom, Washington said another student opened a classroom window, and some of them jumped.

    Brian has numbness in his hands and trouble moving some of his right-hand fingers.

    “He’s really good at drawing,” Washington said. “He went to CVPA for visual arts, and we’re hoping he’ll be able to draw again.”

    Math teacher David Williams told CNN everyone went into “drill mode,” turning off lights, locking doors and huddling in corners so they couldn’t be seen.

    He said he heard someone trying to open the door and a man yell, “You are all going to f**king die.”

    A short time later, a bullet came through one of the windows in his classroom, Williams said.

    His classroom is on the third floor, where Sack said police engaged the shooter.

    Eventually, an officer said she was outside, and the class ran out through nearby emergency doors.

    Security personnel were at the school when the gunman arrived, St. Louis Public Schools Communications Director George Sells said.

    “We had the seven personnel working in the building who did a wonderful job getting the alarm sounded quickly,” Sells said.

    The commissioner did say the school doors being locked likely delayed the gunman.

    “The school was closed and the doors were locked,” Sack told CNN affiliate KMOV. “The security staff did an outstanding job identifying the suspect’s efforts to enter, and immediately notified other staff and ensured that we were contacted.”

    After widespread controversy over the delayed response in confronting school shooters in Uvalde, Texas, and Parkland, Florida, Sack said responding officers in St. Louis wasted no time rushing into the school and stopping the gunman.

    “There was no sidewalk conference. There was no discussion,” Sack said. “There was no, ‘Hey, where are you going to?’ They just went right in.”

    A call about an active shooter at the high school came in around 9:11 a.m., according to a timeline provided by the commissioner.

    Police arrived on scene and made entry four minutes later.

    Officers found the gunman and began “engaging him in a gunfight” at 9:23 a.m. Two minutes later, officers reported the suspect was down.

    Asked about the eight minutes between officers’ arrival and making contact with the gunman, Sack said “eight minutes isn’t very long,” and that officers had to maneuver through a big school with few entrances and crowds of students and staff who were evacuating.

    Police found the suspect “not just by hearing the gunfire, but by talking to kids and teachers as they’re leaving,” Sack said.

    As phone calls came in from people hiding in different locations, officers fanned out and searched for students and staff to escort them out of the building.

    Officers who were at a church down the street for a fellow officer’s funeral also responded to the shooting, the commissioner said.

    A SWAT team that was together for a training exercise was also able to quickly load up and get to the school to perform a secondary sweep of the building, Sack said.

    Some officers were “off duty; some were in T-shirts, but they had their (ballistic) vests on,” the commissioner said. “They did an outstanding job.”

    Correction: An earlier version of this story gave the wrong age for 15-year-old Alexandria Bell, who was killed in the shooting.

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  • The crisis pregnancy center next door: How taxpayer money intended for poor families is funding a growing anti-abortion movement | CNN

    The crisis pregnancy center next door: How taxpayer money intended for poor families is funding a growing anti-abortion movement | CNN

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    CNN
     — 

    A few blocks from the Ohio State University campus in Columbus, America’s battle over abortion is playing out under one roof.

    On one side of a squat single-story office building, a Planned Parenthood clinic offers reproductive health care and refers patients for abortions. Next door is a branch of Pregnancy Decision Health Center, a crisis pregnancy center that offers counseling and support for pregnant women – but also works to dissuade them from terminating their pregnancies and has been accused of promoting misinformation about abortion.

    Of the two neighboring organizations, only Planned Parenthood provides medical services such as Pap smears, birth control and STD treatments.

    But the crisis pregnancy center is the one receiving money from the state government. Ohio has funneled nearly $14 million in taxpayer funds to the center and others like it over the last decade, according to government records – even as state leaders have cut funding that previously went to Planned Parenthood for programs such as breast and cervical cancer screenings. 

    Ohio isn’t alone. More than a dozen states devote some of their budget to funding crisis pregnancy centers, a CNN review found. About half of those states distribute federal money intended to help needy families to the centers.

    Some of the organizations that receive money have been accused of spreading abortion misinformation or using the funds to advocate anti-abortion causes instead of helping women. 

    “Public dollars should go to promoting public health,” said Ashley Underwood, the director of Equity Forward, an abortion rights advocacy group. Crisis pregnancy centers, she said, “solely exist to deter people from getting abortion services.”

    Since the US Supreme Court overturned Roe v. Wade this summer, a wave of abortion restrictions has swept the country, leaving millions of women with easier access to crisis pregnancy centers than abortion care. Crisis pregnancy centers far outnumbered abortion clinics across the US even before the court’s ruling, and anti-abortion groups are now planning to expand. 

    Pregnancy center leaders and their state government allies say the organizations deserve taxpayer funds because they provide pregnant women with resources like free diapers and ultrasounds. But some of the centers also lie to women about the safety and potential risks of abortion, according to multiple studies, abortion rights activists, and women who have been to the centers. 

    That kind of deception isn’t typical in any other area of health care, said Dr. Amy Addante, an Illinois OB-GYN who performs abortions and has been a vocal critic of crisis pregnancy centers.

    “The purpose of these centers is to try to stop someone from having an abortion,” said Addante. “I cannot think of any other medical decision or any other aspect of health care where there is a group of individuals whose only intent is to stop you from receiving that health care.”

    Big open windows invite patients and passersby into the waiting room at the Pregnancy Decision Health Center (PDHC). With velvety green chairs, leafy plants, and a coffee station that greets visitors as they come in the door, the crisis pregnancy center could pass for an upscale dental office or spa.

    Outside, PDHC’s sign towers over the neighboring Planned Parenthood, literally casting a shadow over the clinic’s entrance. Inside, the contrast is even starker: Planned Parenthood’s waiting room looks run-down – old chairs crowd the small space, faded informational posters cover the walls, and daylight is blocked by signage on the windows and mirrored doors meant to protect patients’ privacy.

    Multiple times a week, patients looking for Planned Parenthood mistakenly walk through PDHC’s doors, according to a Planned Parenthood clinician, Jennifer, who asked CNN not to use her last name out of security concerns. Some patients have told Planned Parenthood that PDHC employees told them abortion wasn’t safe or said PDHC tried to delay them and make them late for their Planned Parenthood appointments.

    Lillian Williams is the vice president of health services of Planned Parenthood of Greater Ohio.

    “They’ve provided an array of misinformation, whether it’s about abortion care or even about contraceptive services,” said Lillian Williams, the vice president of health services of Planned Parenthood of Greater Ohio.

    Ayla Krueger, a 23-year-old Columbus resident, visited PDHC earlier this month with a friend who was seeking an STD test. She said that during their hour-and-a-half visit, an employee claimed that condoms were only 50% effective, the spread of STDs could only be prevented if people followed “God’s plan” of avoiding sex before marriage, and that if a woman who has an STD gets an abortion, “your STDs travel up your cervix into your organs and could kill you.”

    “I was dumbfounded,” Krueger said of the encounter. “My heart was breaking, thinking about girls who don’t understand what they’re walking into there… and possibly getting coerced.”

    Experts said that the center’s rhetoric was not medically accurate. “We do worry about ascending infections in abortions and pregnancy, but the risk is really, really low,” said Dr. Jonas Swartz, an OB-GYN and professor at Duke University Medical Center. “Crisis pregnancy centers regularly overstate the risk of abortions and this is just one example of that.”

    The center also offers “abortion pill reversal,” according to its website, annual reports and pamphlets at the office. Abortion reversal is a medically dubious, unproven treatment that purports to undo a medication abortion but has been denounced by medical groups and found to be dangerous by researchers. A clinical trial that attempted to study abortion reversal was halted prematurely in 2019 when several participants suffered hemorrhaging.

    Kathy Scanlon, PDHC’s president, declined an interview request and didn’t respond to CNN’s questions about Krueger’s allegations or abortion pill reversal.

    “Every woman deserves care and compassion when facing an unexpected pregnancy,” Scanlon wrote in an email, adding that the center provides “practical pregnancy care and support ranging from free pregnancy tests and ultrasounds to parenting education classes and much-needed baby items” such as diapers and car seats.

    Anti-abortion signs sit on a table during the Ohio March for Life in Columbus.

    Research has found that crisis pregnancy centers commonly disseminate misinformation. A study released last year by The Alliance, an abortion rights advocacy group, found that almost two-thirds of crisis pregnancy centers in nine states promoted false or biased information about abortion on their websites. That included false claims that abortions increased the risk of cancer or infertility.  More than a third of clinics also advertised that they offered abortion pill reversal – and state-funded clinics were more likely than privately-funded ones to offer the unproven procedure and less likely to offer prenatal care, according to the study. 

    Similarly, a 2012 academic study of crisis pregnancy centers in North Carolina found that 86% of centers promoted false or misleading medical information on their websites. 

    Crisis pregnancy center leaders say they are working to help women. Peggy Hartshorn, who founded the Columbus center and is now the chair of Heartbeat International, one of the largest global networks of crisis pregnancy centers, said the allegations that the groups spread misinformation are “a false narrative.”

    She said that the information her centers provide to clients is “very well-researched, medically referenced – we document everything with multiple sources.”

    “Deep down in their hearts, women do not want to have abortion,” Hartshorn said. “Pregnancy centers are good for America, they really are.”

    In Ohio, a new six-week abortion ban that went into effect after the Supreme Court decision, is currently on hold amid court battles. The Planned Parenthood clinic near Ohio State University doesn’t perform abortions – it refers patients to a Planned Parenthood surgical center on the other side of town that does.

    The waiting room in the Planned Parenthood near campus.

    That facility, too, has a state-funded crisis pregnancy center operating across the street. On a recent afternoon, a handful of protesters lined the clinic’s fence with signs depicting bloody fetuses and shouted “you are already a mother” and “abortion is murder” whenever a patient came within earshot. One protester – wearing a reflective vest and holding a clipboard, similar to Planned Parenthood volunteers – tried to direct patients away from the abortion clinic and to the crisis pregnancy center across the street. The center told CNN the protesters weren’t affiliated with their organization.

    It’s not rare for pregnancy centers to operate near abortion clinics. More than 100 pregnancy centers around the country are located within 200 meters of an abortion clinic or Planned Parenthood location, according to a CNN analysis. Some – in states like Delaware, Indiana and Michigan – are next door to clinics. 

    Abortion rights advocates say the intention is to mislead women and block them from accessing abortion.  

    “The purpose of co-locating near a legitimate provider is to intercept someone seeking legitimate health care and divert them into walking through their doors instead,” said Tara Murtha, the co-author of a report about pregnancy centers and a spokesperson for the Women’s Law Project. “It’s basically an obstacle course and a systemic barrier to abortion care.”

    Despite the groups’ apparent spreading of misinformation, at least 18 states have funded crisis pregnancy centers with taxpayer money, according to a CNN review of government records and statements from state agencies. The largest is Texas, which has sent more than $200 million to the groups over the last decade. 

    More than a half-dozen states bankroll crisis pregnancy centers at least partly with funds from Temporary Assistance to Needy Families (TANF), a federal welfare program. Those federal funds are sent to states as a block grant, which gives state officials wide latitude in how to spend it, including on programs like “alternatives to abortion” grants for crisis pregnancy centers. 

    Research has shown that a smaller percentage of poor families are now receiving cash assistance from the TANF program than in previous decades.

    While about 68% of families with children in poverty received cash assistance through TANF in 1996, when the program was created, that percentage declined to just 21% by 2020, according to a study by the Center on Budget and Policy Priorities, a nonpartisan think tank. The percentage was even lower in some of the GOP-dominated states that use TANF funding to support crisis pregnancy centers, such as Texas and Louisiana.

    “When you look at successes in reducing poverty by strengthening the safety net, cash assistance is the most effective way to help families,” said Aditi Shrivastava, who co-authored the study. “We are seeing states spend less of their money directly on cash assistance, and we don’t think that is what the program should be doing.”

    In the wake of the Supreme Court overturning Roe v. Wade, some states are piloting new efforts to fund crisis pregnancy centers. Lawmakers in Arkansas and Iowa approved state funding for such groups for the first time this year.

    The states have argued that crisis pregnancy centers deserve taxpayer funding because they provide services to pregnant women in need. 

    “If we are going to be the most pro-life state in the union, we have to be prepared when those mothers come to a facility and they need help,” Arkansas state Rep. Robin Lundstrum said at a legislative hearing about the state’s new program earlier this year.

    In Columbus, Pregnancy Decision Health Center is receiving more than $528,000 from the state government in the current fiscal year, according to government records. All of that comes from federal TANF funds. The funding amounts for about a fourth of the center’s total revenue, while the rest comes from private donations, according to the group’s most recent tax records available.

    People participate in the Ohio March for Life.

    Despite the large amounts of money, there’s little oversight of how the taxpayer dollars are being used. 

    Many of the appropriations are written into spending bills passed by GOP-dominated state legislatures. Pennsylvania, for example, has sent more than $70 million over the last decade to crisis pregnancy centers through Real Alternatives, an anti-abortion group that distributes state funding to crisis pregnancy centers. 

    A 2017 report by the state auditor general found that Real Alternatives used hundreds of thousands of dollars of the money it received from Pennsylvania “to fund its activities in other states,” in what the auditor said was an example of the group “siphoning funds intended to benefit Pennsylvania women.” Real Alternatives denied the allegations in a statement, saying that they had “no basis in fact or law.”

    Michigan, which had contracted with Real Alternatives to distribute funding for crisis pregnancy centers, canceled its contract after Gov. Gretchen Whitmer vetoed the funding for it in 2019. In a letter about the veto, Whitmer thanked a watchdog group that had issued a report accusing the organization of only helping a fraction of the pregnant women it had agreed to support.

    Real Alternatives, which also receives TANF money from Indiana, said the Michigan report was “riddled with inaccuracies, distortions, half-truths and defamatory statements.”

    A bill in the Ohio legislature that would have required crisis pregnancy centers receiving state funding to provide their clients with only medically accurate information died in committee in multiple recent legislative sessions. The state’s GOP legislative leaders did not respond to requests for comment.

    Meanwhile, some of the same red states that have bankrolled crisis pregnancy centers have stripped funding from Planned Parenthood. In Ohio, for example, the group never received state funding for abortions, but for years it received money for other services like cancer screenings, STD prevention and treatment, and sex education for teens.

    In 2016, however, Ohio lawmakers banned the state from funding any organization that performs abortions, and the law went into effect after it was upheld by a federal appeals court in 2019. That meant that Planned Parenthood affiliates in Ohio lost about $600,000 a year in state funding, and led to the cancellation of some of their non-abortion health programs.

    While Planned Parenthood does receive some additional reimbursements through Ohio’s Medicaid program for providing non-abortion health care to people on Medicaid plans, it no longer receives state grants.

    Planned Parenthood also lost additional federal funding under Title X, a program that funds birth control and reproductive health services, under a Trump administration rule. But the organization started receiving that money again this year after the Biden administration reversed the rule.

    Maria Gallo, a sexual and reproductive health epidemiologist at Ohio State University, said that state funding for crisis pregnancy centers shows how conservative lawmakers prioritize anti-abortion rhetoric over medical care for women.

    “It’s dangerous in part because they are legitimizing (crisis pregnancy centers),” Gallo said. “They are legitimizing that as a source of medical care when they’re not licensed medical facilities.”

    Crisis pregnancy centers drastically outnumber abortion clinics in the United States. There were 790 abortion clinics operating in 2021, compared with about 2,600 crisis pregnancy centers, according to a database compiled by Reproaction, an abortion-rights group.

    That disparity is only likely to grow in the wake of the Supreme Court decision. Hartshorn, the chair of Heartbeat International, said the organization has created an online training program to help people open new pregnancy centers, especially in places without existing ones.

    “We need more people, we need more places, and we need more paths to pregnancy health,” Hartshorn said.

    Thank you notes are displayed in the Planned Parenthood in Columbus.

    A study by the National Center for Responsive Philanthropy found that the groups have taken in more and more money in recent years: They received over $1 billion in revenue in 2019, the most recent year data was available, compared to about $771 million in 2015. 

    Several women who went to state-funded crisis pregnancy centers told CNN they felt misled and manipulated by the groups, and disturbed that they were getting taxpayer money.

    Last year, a woman who asked to be identified by her middle name, Eve, had just lost her job when she suspected she might be pregnant. She and her boyfriend went to Women’s Care Center in Columbus after finding the group on Google. Money was tight, and she chose the center – which is receiving more than $700,000 from the state of Ohio in the current fiscal year – because it promised free pregnancy testing. 

    Eve’s test was positive, and she asked the staff about an abortion. She said they handed her a pamphlet that warned her the procedure could cause infertility – though abortion doesn’t typically affect a person’s ability to become pregnant in the future. For three hours, Eve said the staff pressured her to carry the pregnancy to term.

    “It became very clear that they were against abortion really quickly,” said Eve, who left the center feeling upset and later got an abortion. The center didn’t respond to questions about Eve’s visit but said in an email they are “absolutely committed to accuracy, excellence and transparency in all we do.”

    One day, Eve said she hopes to have kids. But at the time, she didn’t feel financially or emotionally stable enough to have a baby.

    “Nobody wants to make a decision to have an abortion,” Eve said. “And they made me feel really guilty and bad about it.”

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