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  • As companies bring more jobs to Mexico, US wants labor rights safeguards

    As companies bring more jobs to Mexico, US wants labor rights safeguards

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    MEXICO CITY, July 3 (Reuters) – The U.S. wants Mexico’s government to build strong institutions to protect worker rights as companies aiming to avoid supply chain disruptions in far-off production spots bring more jobs to the country, a top U.S. labor official told Reuters.

    Mexico has begun to benefit from “nearshoring” in which companies seek to move production closer to the U.S. market while maintaining competitive costs.

    The trend is further testing a trade deal known as the U.S.-Mexico-Canada Agreement (USMCA), in effect since July 2020.

    The pact has tougher labor rules than its 1994 predecessor and underpins new Mexican laws that empower workers to push for better wages and conditions after years of stagnant salaries and pro-business union contracts.

    Three years into the deal, experts say, some workers have begun to benefit but broad impacts are still far off.

    “Hopefully that will ensure that Mexico doesn’t become a dumping ground for companies looking for cheap labor and lax regulations,” said Thea Lee, U.S. Deputy Undersecretary for International Labor Affairs who polices USMCA compliance.

    She said in an interview that Mexico was working to fulfill its commitments, backed by leadership keen on helping workers.

    Mexico’s new regulations favor companies taking on higher ethical standards, she said.

    “Maybe 20 years ago it was okay for a multinational corporation to throw up their hands and say, ‘we have no idea what’s in our supply chain, what the labor conditions are,’” she added.

    “That doesn’t seem to be acceptable anymore.”

    Mexico has made progress improving labor courts, resolving worker complaints faster and easing union organization, but needs to do more, Lee said.

    “Our hope is that Mexico will be well-poised to take advantage of nearshoring … if they continue on the path towards really building labor institutions that work, where workers can have confidence.”

    Since 2020, several U.S. labor complaints in Mexico have paved the way for independent unions to land pay raises and even expand. Lee said such examples inspire workers who in the past may have feared threats or dismissals for trying to organize.

    Four more cases are under review: At a garment factory, an auto parts plant, a Goodyear tire plant, and a mine owned by conglomerate Grupo Mexico.

    Yet one employer that faced two USMCA complaints, U.S.-based VU Manufacturing that makes interior car parts in the northern city of Piedras Negras, recently dismissed dozens of employees just months after a new union, La Liga, pressed for better wages. VU did not respond to a request for comment.

    Lee said the company risks penalties if it does not uphold an agreement around worker rights. But La Liga members have already been laid off, and fear the company aims to discourage organizing, said union leader Cristina Ramirez, who lost her job.

    “It’s very disappointing and frustrating,” Ramirez said. “We wanted to fight for things to improve.”

    Reporting by Daina Beth Solomon; Editing by David Gregorio

    Our Standards: The Thomson Reuters Trust Principles.

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  • Trump indictment: Reuters/Ipsos poll shows most Republicans think charges are politically motivated 

    Trump indictment: Reuters/Ipsos poll shows most Republicans think charges are politically motivated 

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    WASHINGTON, June 13 (Reuters) – A vast majority of Republicans believe federal criminal charges against Donald Trump are politically motivated, according to a Reuters/Ipsos poll completed on Monday that also showed him far ahead of his nearest rival in the race for the Republican presidential nomination.

    The polling, which began on Friday, a day after Trump was indicted, found that 81% of self-identified Republicans said politics was driving the case, reflecting the deep polarization of the U.S. electorate. President Joe Biden, a Democrat, has repeatedly said he has no involvement in the case brought by the Department of Justice.

    The number of Republicans who believe the former president is being unfairly targeted vastly exceeds the 30-35% of Trump supporters who are estimated by political analysts to make up his core base.

    Some 62% of respondents in the Reuters/Ipsos poll, including 91% of Democrats and 35% of Republicans, said it was believable that Trump illegally stored classified documents at his home in Florida as alleged by prosecutors.

    The indictment did not appear to dent Trump’s standing in the Republican nominating contest for the 2024 presidential election. The specific charges, including obstruction of justice, became public on Friday afternoon when the indictment was unsealed.

    Some 43% of self-identified Republicans said Trump was their preferred candidate, compared to 22% who picked Florida Governor Ron DeSantis, Trump’s closest rival.

    In early May, Trump led DeSantis 49% to 19%, but that was before DeSantis formally entered the race.

    The rest of the Republican field, which includes former Vice President Mike Pence who declared his candidacy last week, had low single-digit levels of support.

    Trump flew to Miami on Monday to face federal charges of unlawfully keeping U.S. national security documents and lying to officials who tried to recover them. Trump, who will appear in court on Tuesday, has proclaimed his innocence and vowed to continue his campaign to regain the presidency in the November 2024 general election.

    Many Republican contenders in the 2024 race have accused the U.S. Justice Department of political bias and say it is being “weaponized” against Biden’s biggest Republican challenger. The department says all investigative decisions are made without regard to partisan politics.

    Trump also faces charges in New York in a state criminal case related to alleged hush money payments to a pornographic film star. A Reuters/Ipsos poll in March found that Republicans also saw that investigation as politically motivated.

    Biden’s approval rating stood at 41% last week, close to the lowest level of his presidency. Trump had a 40% approval rating at this point in his 2017-2021 presidency.

    The latest poll included responses from 1,005 adults nationwide and had a credibility interval, a measure of precision, of 4 percentage points for all voting-age Americans and between 6 and 7 percentage points for Republicans.

    Reporting by Jason Lange; Editing by Andy Sullivan, Ross Colvin and Howard Goller

    Our Standards: The Thomson Reuters Trust Principles.

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  • Ron DeSantis joins White House race, tripped up by chaotic Twitter launch

    Ron DeSantis joins White House race, tripped up by chaotic Twitter launch

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    WASHINGTON, May 23 (Reuters) – Florida Governor Ron DeSantis suffered a chaotic start to his 2024 presidential election race on Wednesday when glitches marred an online forum hosted by Twitter owner Elon Musk that was meant to showcase DeSantis’ fitness for the job.

    The Twitter broadcast of the hour-long interview , which had been intended as the formal launch for the DeSantis campaign, lost sound for extended stretches and thousands of users were either unable to join or were dropped.

    It was an inauspicious start for a campaign predicated on the governor’s executive competence.

    “We must end the culture of losing that has infected the Republican Party in recent years,” DeSantis said in the event with Musk once the problems were largely resolved. The hashtag #DeSaster was trending on Twitter.

    DeSantis’ entrance in the Republican contest sets up a showdown with his one-time ally, former President Donald Trump, who lost the 2020 presidential election to Democrat Joe Biden.

    The Florida governor framed himself as a get-it-done executive who stood up to the federal government over COVID policies and who has put an indelibly conservative stamp on his home state.

    He defended his efforts in Florida to prohibit the teaching of concepts such as gender identity and systemic racism as protecting young children and pushing back against progressive ideology.

    With a rising national profile and what are expected to be deep financial resources, DeSantis, 44, immediately became Trump’s biggest rival for the Republican nomination.

    “Government is not about entertainment, not about building a brand,” DeSantis said, taking a veiled swipe at Trump. Notably he never mentioned Trump by name during the event.

    Trump, 76, didn’t hesitate to mock DeSantis on his social media platform, Truth Social, over the stumbling start to his campaign.

    “My Red Button is bigger, better, stronger, and is working (TRUTH!)” Trump posted, “Yours does not.”

    Musk conceded there had been “technical issues because of the sheer scale” of the event, but added that “it’s just really great for the people to hear directly from presidential candidates.”

    At one point, the Twitter event drew more than 600,000 listeners. By its conclusion, there were fewer than 300,000.

    DeSantis’ campaign spokesman Bryan Griffin said on Twitter that enthusiasm for DeSantis had “literally busted up the internet.”

    The campaign raised $1 million in an hour, Griffin said.

    TRUMP AHEAD IN POLLS

    Polls show Trump with more than a 2-to-1 edge over the Florida governor, who has long been considered a Republican rising star and the herald of a new generation of leaders in the party. Trump, who announced in November, also has a head start in organizing his campaign in key early voting states.

    DeSantis’ central argument for his candidacy likely will be that he is the only Republican who can defeat Biden.

    “Our president, while he lacks vigor, flounders in the face of our nation’s challenges and he takes cues from the woke mob,” DeSantis said.

    Mainstream Republicans will be watching DeSantis carefully to see if he can recover from his missteps on foreign policy, such as his initial reluctance to express support for Ukraine in its war with Russia.

    In the weeks leading up to his presidential bid, DeSantis toured the country, visiting states such as Iowa and New Hampshire that will hold early nominating contests. He has boasted of his record as Florida’s governor, including his battles with the federal government over pandemic policies.

    DeSantis and his advisers were determined to wait to enter the race until the Florida Legislature could hand him a series of policy victories – and lawmakers have done just that.

    He signed measures that severely restricted abortions in the state, made it easier for residents to carry concealed weapons, expanded a voucher program to allow students to attend private schools and eliminated funding for diversity programs at public universities, among other things.

    DeSantis remains in a pitched battle with Walt Disney Co (DIS.N) over the company’s criticism of laws prohibiting the teaching of gender identity concepts in public schools. The company has filed a federal lawsuit accusing DeSantis of weaponizing state government to punish its operations.

    Other declared Republican candidates include Nikki Haley, former U.S. ambassador to the United Nations, and Tim Scott, a U.S. senator from South Carolina.

    Reporting by Jasper Ward; Editing by Doina Chiacu

    Our Standards: The Thomson Reuters Trust Principles.

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  • U.S. Congress gears up for immigration overhaul as Title 42 ends

    U.S. Congress gears up for immigration overhaul as Title 42 ends

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    WASHINGTON, May 4 (Reuters) – A fresh push for a bipartisan immigration overhaul, coupled with enhanced border security, is emerging in the U.S. Congress, as thousands of migrants amass across the border in Mexico ahead of the end of COVID-era border restrictions next week.

    The latest among those efforts is a last-minute legislative push that would grant U.S. border authorities similar expulsion powers allowed under the expiring COVID restrictions – known as Title 42 – for a period of two years, according to a congressional office involved in the talks.

    Title 42 began under Republican former President Donald Trump in 2020 at the beginning of the COVID-19 pandemic and allows U.S. authorities to expel migrants to Mexico without the chance to seek asylum. The order is set to lift on May 11 when the COVID health emergency officially ends.

    But many Republicans and some Democrats, particularly in border areas, fear the end of the order will lead to a rise in migration that authorities are poorly equipped to face. A top border official recently told lawmakers that migrant crossings could jump to 10,000 per day after May 11, nearly double the daily average in March.

    Senators Kyrsten Sinema, an Arizona independent, and Thom Tillis, a North Carolina Republican, are leading the effort to temporarily extend border expulsions. The pair view it as a short-term fix while they work on broader immigration reform, Sinema spokesperson Hannah Hurley said.

    “This is squarely about the immediate crisis with the end of Title 42,” Hurley said.

    Separately, the Republican-controlled House of Representatives plans to pass a package of border security measures next week to place tougher constraints on asylum-seekers, resume construction of a wall along the southwest border with Mexico, and expand federal law enforcement.

    Many are seeking more sweeping change – but their hopes have been dashed in the past.

    It has been 37 years since Congress passed significant immigration reform, but a persistently high volume of migrants and an acute labor shortage have galvanized lawmakers. Republicans also cite the flow of illegal drugs into the United States through ports of entry as reason to harden border security.

    While some Democrats characterize the House border legislation as inhumane, several Democratic and Republican senators said they eagerly await such a bill.

    Tillis, who is pushing both the short-term legislative fix for Title 42’s end and a wider package of reforms, said a House-passed bill would be “something we can build on.”

    “It gives us some room to gain the support we need in the Senate” for broader legislation, he said, adding it could take two to three months to construct a compromise. But senators had no illusions this would be an easy task.

    Dick Durbin, the No. 2 Senate Democrat, said the House bill would provide clues on Republicans’ intent. He added that in conversations with fellow senators, “One of the first things they say is ‘well if the House starts the conversation I think we can get somewhere.’ We’ll see.”

    Since a 1986 immigration reform package, which resulted in some 3 million immigrants winning legal status, Congress repeatedly has failed to update the nation’s policies.

    Around 11 million unauthorized immigrants in the United States could have a stake in the outcome of this latest effort, along with U.S. businesses hungry for workers.

    To succeed in the Democrat-controlled Senate, it would need 60 senators from across both parties to back it, as well as win the support of the Republican-controlled House.

    “A high-wire act,” is how Republican Senator John Cornyn from border state Texas portrayed it, adding it was “the only path forward.”

    STARS ALIGNING

    The U.S. Chamber of Commerce, the nation’s largest business association, has launched a campaign urging Congress to act. It was endorsed by 400 groups, ranging from the American Farm Bureau Federation to the U.S. Travel Association.

    Republican-controlled states see their farming, ranching, food processing and manufacturing businesses begging for workers, a void that immigrants could fill if not for Washington’s clunky visa system.

    Finally, passage of an immigration bill coupled with beefed-up border security could boost President Joe Biden’s re-election campaign and give Republican candidates something to cheer, too.

    The House bill would deal with some of the five “buckets” in the Tillis-Sinema effort, according to a Senate source familiar with their work.

    Overall, they include a modernization of the plodding asylum system, improvements to how visas are granted, and measures to more effectively authorize immigrants, be they laborers and healthcare workers or doctors and engineers, to fill American jobs.

    There is also the fate of 580,000 “Dreamers” enrolled in the Deferred Action for Childhood Arrivals (DACA) program, who were brought illegally into the United States as children.

    Republicans have blocked their path to citizenship for two decades, arguing that would encourage more to take the dangerous journey to the border.

    Senators acknowledge some of their goals might have to be abandoned to achieve a “sweet spot.” But which ones?

    Democratic Senator Chris Murphy, who won passage last year of the first major gun control bill in about three decades, did so in part by recognizing that a too ambitious bill is a recipe for failure.

    Murphy was asked how the difficulty of winning immigration legislation stacks up to other recent battles, such as gun control, gay marriage and infrastructure investments.

    “It’s an 11 on a scale of 10.”

    Reporting by Richard Cowan; additional reporting by Ted Hesson; Editing by Mary Milliken and Diane Craft

    Our Standards: The Thomson Reuters Trust Principles.

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  • WHO experts to weigh whether world ready to end COVID emergency

    WHO experts to weigh whether world ready to end COVID emergency

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    LONDON, May 4 (Reuters) – A panel of global health experts will meet on Thursday to decide if COVID-19 is still an emergency under the World Health Organization’s rules, a status that helps maintain international focus on the pandemic.

    The WHO first gave COVID its highest level of alert on Jan. 30, 2020, and the panel has continued to apply the label ever since, at meetings held every three months.

    However, a number of countries, such as the United States, have recently begun lifting their domestic states of emergency. WHO Director-General Dr Tedros Adhanom Ghebreyesus has said he hopes to end the international emergency this year.

    A final decision by Tedros based on the panel’s advice is expected in the coming days. There is no consensus yet on which way the panel may rule, advisors to the WHO and external experts told Reuters.

    “It is possible that the emergency may end, but it is critical to communicate that COVID remains a complex public health challenge,” said Professor Marion Koopmans, a Dutch virologist who is on the WHO panel. She declined to speculate further ahead of the discussions, which are confidential.

    One source close to negotiations said lifting the “public health emergency of international concern,” or PHEIC, label could impact global funding or collaboration efforts. Another said that the unpredictability of the virus made it hard to call at this stage. Others said it was time to move to living with COVID as an ongoing health threat, like HIV or tuberculosis.

    “All emergencies must come to an end,” said Lawrence Gostin, a law professor at Georgetown University in the United States who follows the WHO.

    “I expect WHO to end the public health emergency of international concern. If WHO does not end it… [this time], then certainly the next time the emergency committee meets.”

    Dr. Jarbas Barbosa, director of the Pan American Health Organization (PAHO), said he was concerned that a change in status would lead to complacency, with weaker surveillance and falling vaccination levels.

    “(The PHEIC) does not bring any kind any harm for countries but at the same time it keeps their attention,” he told journalists.

    Reporting by Jennifer Rigby in London and Emma Farge in Geneva; Editing by Alexandra Hudson

    Our Standards: The Thomson Reuters Trust Principles.

    Jennifer Rigby

    Thomson Reuters

    Jen reports on health issues affecting people around the world, from malaria to malnutrition. Part of the Health & Pharma team, recent notable pieces include an investigation into healthcare for young transgender people in the UK as well as stories on the rise in measles after COVID hit routine vaccination, as well as efforts to prevent the next pandemic. She previously worked at the Telegraph newspaper and Channel 4 News in the UK, as well as freelance in Myanmar and the Czech Republic.

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  • In victory for labor unions, Michigan governor repeals ‘right-to-work’ law

    In victory for labor unions, Michigan governor repeals ‘right-to-work’ law

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    March 24 (Reuters) – Michigan Governor Gretchen Whitmer on Friday signed a package of bills repealing the state’s so-called “right to work” law that allowed workers to opt out of unions, a long-sought victory for labor organizers facing an era of diminished power.

    Whitmer became the first governor since the 1960s to roll back right-to-work legislation. Twenty-six other U.S. states and the territory of Guam still have right-to-work laws on the books, according to the National Conference of State Legislatures.

    “Michigan workers are the most talented and hard-working in the world and deserve to be treated with dignity and respect,” Whitmer, a two-term Democrat, said in a statement.

    Michigan House Bills 4004 and 4007 and Senate Bill 34 passed the Democratic-controlled state legislature earlier this month. House Bill 4007 requires that contractors hired by the state pay a so-called prevailing wage, the amount used when hiring union workers.

    The Michigan state legislature, controlled at the time by Republicans, in 2012 passed a right-to-work law over the objections of union activists. It was signed into law by then-Governor Rick Snyder, also a Republican.

    Republicans opposed repealing that law this year, arguing that it would hurt businesses and make the state less attractive to companies.

    Union membership has declined sharply in the United States since its peak in the 1950s, when more than a third of workers belonged to a union.

    Membership dropped to an all-time low of 10.1% in 2022 despite a surge in organizing during the COVID-19 pandemic, according to data released in January by the U.S. Bureau of Labor Statistics.

    Reporting by Dan Whitcomb; editing by Grant McCool

    Our Standards: The Thomson Reuters Trust Principles.

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  • U.S. FDA proposes shift to annual COVID vaccine shots

    U.S. FDA proposes shift to annual COVID vaccine shots

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    Jan 23 (Reuters) – The U.S. health regulator on Monday proposed one dose of the latest updated COVID-19 shot annually for healthy adults, similar to the influenza immunization campaign, as it aims to simplify the country’s COVID-vaccine strategy.

    The U.S. Food and Drug Administration also asked its panel of external advisers to consider the usage of two COVID vaccine shots a year for some young children, older adults and persons with compromised immunity.The regulator proposed the need for routine selection of variants for updating the vaccine, similar to the way strains for flu vaccines are changed annually, in briefing documents ahead of a meeting of its panel on Thursday.

    The FDA hopes annual immunization schedules may contribute to less complicated vaccine deployment and fewer vaccine administration errors, leading to improved vaccine coverage rates.The agency’s proposal was on expected lines, following its announcement of its intention for the update last month.

    A nurse fills up syringes with the coronavirus disease (COVID-19) vaccines for residents who are over 50 years old and immunocompromised and are eligible to receive their second booster shots in Waterford, Michigan, U.S., April 8, 2022. REUTERS/Emily Elconin

    The Biden administration has also been planning for a campaign of vaccine boosters every fall season.

    Currently, most people in the United States need to first get two doses of the original COVID vaccine spaced at least three to four weeks apart, depending on the vaccine, followed by a booster dose a few months later.

    Pfizer’s primary vaccine doses for children and people involve three shots, with the third a bivalent shot given about two months later.

    If the panel votes in favor of the proposal, Pfizer Inc (PFE.N) and Moderna Inc’s (MRNA.O) bivalent vaccines, which target both the Omicron and the original variants, would be used for all COVID vaccine doses, and not just as boosters.

    Reporting by Leroy Leo in Bengaluru; Editing by Shailesh Kuber and Shinjini Ganguli

    Our Standards: The Thomson Reuters Trust Principles.

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  • Democrats seek vote reform, gay marriage, debt ceiling in ‘lame duck’ Congress

    Democrats seek vote reform, gay marriage, debt ceiling in ‘lame duck’ Congress

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    WASHINGTON, Nov 14 (Reuters) – Democrats in the U.S. Congress aim to pass bills protecting same-sex marriage, clarifying lawmakers’ role in certifying presidential elections and raising the nation’s debt ceiling when they return from the campaign trail on Monday.

    President Joe Biden’s party got a boost over the weekend when it learned it would keep control of the Senate for the next two years, while control of the House of Representatives is still up in the air as votes are counted after Tuesday’s midterm election.

    But Democrats escaped a feared midterm drubbing and will look to make the most they can of their current thin majorities in both chambers before the new Congress is sworn in on Jan. 3, a period known as the ‘lame duck’ session.

    House Speaker Nancy Pelosi and Treasury Secretary Janet Yellen both signaled that addressing the nations’ looming debt ceiling would be a priority during the session.

    Some Republicans have threatened to use the next hike in the $31.4 trillion debt ceiling, expected in the first quarter of 2023, as leverage to force concessions from Biden. Yellen in a Saturday interview with Reuters warned that a failure to act would pose a “huge threat” to America’s credit rating and the functioning of financial markets.

    Pelosi, who would lose her position as speaker if Republicans win a majority in the House, told ABC News on Sunday that the best way to address the debt ceiling was “to do it now.”

    “My hope would be that we could get it done in the lame duck,” Pelosi said. “We’ll have to, again, lift the debt ceiling so that the full faith and credit of the United States is respected.”

    Biden told reporters over the weekend he would wait to speak to Republican leadership before deciding any priorities, adding he planned to “take it slow.”

    Congress has a long to-do list in the coming weeks. It faces a Dec. 16 deadline to passing either a temporary funding bill to keep government agencies operating at full steam until early next year, or a measure that keeps the lights on through Sept. 30, the end of the current fiscal year. Failure to enact one of those would result in partial government shutdowns.

    The House already has passed legislation legalizing gay marriage and the Senate was poised, as soon as this week, to approve its slightly different version of the “Respect for Marriage Act.” The bill is intended to ensure that the U.S. Supreme Court does not end gay marriage rights, which conservative Justice Clarence Thomas mused was possible when the court in June ended the national right to abortion.

    Another high-priority item is a bipartisan bill reforming the way Congress certifies presidential elections, intended to avoid a repeat of the violence of the Jan. 6, 2021, assault on the Capitol by supporters of former President Donald Trump who wanted to stop lawmakers from certifying Biden’s win.

    Democratic leaders also aim to pass legislation speeding permits for energy projects and provide more financial and military support for Ukraine in its fight against Russia’s invasion.

    Some Republicans have expressed reluctance to provide more financial support for Ukraine.

    Progressive Democrats have bridled at the prospect of the government stepping up the energy permitting process, thus encouraging the flow of fossil fuels to market even as Biden attempts to meet stringent goals to reduce the impact of climate change.

    Biden has suggested permitting reform could be included in the National Defense Authorization Act, the annual bill funding the military that usually gets strong bipartisan support.

    But keeping the Senate majority for the next two years means that there will be less pressure on Senate Majority Leader Chuck Schumer to confirm as many of Biden’s nominees for federal judgeships as possible before the end of the year.

    There are 57 judicial nominees pending before the Senate, with 25 already approved by the Judiciary Committee and awaiting action by the full chamber.

    The Senate has already confirmed 84 of Biden’s judicial nominees, allowing him to essentially keep pace with the near-record number of appointments Trump made during four years as he worked to move the judiciary rightward.

    Reporting by Moira Warburton and Richard Cowan; Additional reporting by David Lawder in New Delhi, Nandita Bose in Phnom Penh and Trevor Hunnicutt, Doina Chiacu and Susan Heavey in Washington; Editing by Scott Malone, Alistair Bell and Daniel Wallis

    Our Standards: The Thomson Reuters Trust Principles.

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  • U.S. Supreme Court’s Barrett again declines to block Biden student debt relief

    U.S. Supreme Court’s Barrett again declines to block Biden student debt relief

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    Nov 4 (Reuters) – U.S. Supreme Court Justice Amy Coney Barrett on Friday again declined to block President Joe Biden’s plan to cancel billions of dollars in student debt, this time in a challenge brought by two Indiana borrowers, even as a lower court considers whether to lift a freeze it imposed on the program in a different case.

    Barrett denied an emergency request by the Indiana borrowers, represented by a conservative legal group, to bar the U.S. Department of Education from implementing the Democratic president’s plan to forgive debt held by qualified people who had taken loans to pay for college.

    Barrett on Oct. 20 denied a similar request by a Wisconsin taxpayers organization represented by another conservative legal group. The justice acted in the cases because she is the justice assigned to handle certain emergency requests from a group of states that includes Indiana and Wisconsin.

    The St. Louis-based 8th U.S. Circuit Court of Appeals on Oct. 21 put the policy on hold in yet another conservative challenge by six Republican-led states while it considered their request for injunction pending their appeal of their case’s dismissal. That request remains pending.

    Biden’s plan, unveiled in August, was designed to forgive up to $10,000 in student loan debt for borrowers making less than $125,000 per year, or $250,000 for married couples. Borrowers who received Pell Grants to benefit lower-income college students would have up to $20,000 of their debt canceled.

    The non-partisan Congressional Budget Office in September calculated that debt forgiveness would eliminate about $430 billion of the $1.6 trillion in outstanding student debt and that more than 40 million Americans would be eligible to benefit.

    The policy fulfilled a promise Biden made during the 2020 presidential campaign to help debt-saddled former college students. Democrats hope the policy will boost support for them in Tuesday’s midterm elections in which control of Congress is at stake.

    Friday’s case was filed by two borrowers, Frank Garrison and Noel Johnson, represented by the conservative Pacific Legal Foundation, and claimed they would be irreparably harmed if some of their student loans were automatically forgiven because they would face increased state tax liabilities.

    Soon after they sued, the Department of Education created an opt-out option for borrowers. U.S. District Judge Richard Young on Oct. 21 dismissed the case, finding that the debt forgiveness program did not injure Garrison and Johnson.

    The Chicago-based 7th U.S. Circuit Court of Appeals on Oct. 28 declined to block the plan while Garrison and Johnson pursued an appeal, noting that the program is “not compulsory” and that the plaintiffs could avoid tax liability simply by opting out.

    Caleb Kruckenberg, a lawyer at the Pacific Legal Foundation, in a statement expressed disappointment that Barrett declined to block the plan while his clients pursued their appeal but said they will “continue to fight this program in court.”

    “Practically since this program was announced, the administration has sought to avoid judicial scrutiny,” he said. “Thus far they have succeeded. But that does not change the fact that this program is illegal from stem to stern.”

    Reporting by Nate Raymond in Boston; editing by Jonathan Oatis and Rosalba O’Brien

    Our Standards: The Thomson Reuters Trust Principles.

    Nate Raymond

    Thomson Reuters

    Nate Raymond reports on the federal judiciary and litigation. He can be reached at nate.raymond@thomsonreuters.com.

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  • White House signals Biden may address filibuster reform soon

    White House signals Biden may address filibuster reform soon

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    WASHINGTON, Oct 22 (Reuters) – The White House on Friday offered a strong signal that it is preparing to seek changes soon to a long-standing Senate tradition that has allowed Republicans to block voting rights legislation and other major Democratic initiatives.

    Democratic President Joe Biden, who spent 36 years in the Senate, has previously opposed any significant overhaul of a Senate rule known as the filibuster, which requires 60 of the 100 senators to agree on most legislation. read more

    His opposition has angered Democrats and activists who say an arcane rule should not stand in the way of important issues such as voting rights and immigration.

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    “I expect you’ll hear more from the president about it in the coming weeks,” White House spokesperson Jen Psaki told reporters on Friday about the filibuster. Asked what more he would want to address with filibuster reform beyond voting rights, Psaki said to “stay tuned.”

    During a televised town hall event on Thursday, Biden said the Senate should “fundamentally alter” the filibuster process, but did not offer specifics on how.

    The White House’s potential shift on the issue comes after the latest successful effort by Republicans to block Democratic legislation aimed at thwarting restrictive new voting laws enacted in Republican-led states. On Wednesday, Republicans used the filibuster to block beginning a debate on the measure.

    When Republicans control the White House and the Senate, Democrats have used the filibuster as well.

    Psaki suggested Biden had lost patience with Republican resistance to Democrats’ ideas on voting rights, saying the president is “frustrated” and “disappointed.”

    “When a hand has been extended by Democrats to work together to protect the fundamental right, Republicans have not only recoiled, they have blocked the … ability to make any semblance of progress,” Psaki said.

    While Democrats are united on voting rights, they are not unified in whether to overhaul the filibuster. U.S. Senator Joe Manchin, a moderate Democrat from West Virginia, has publicly opposed eliminating the filibuster, even for specific issues.

    With a 50-50 split in the Senate, Democrats would need all of its members to support changes.

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    Reporting by Jeff Mason and Jarrett Renshaw; additional reporting by Steve Holland; Editing by Jonathan Oatis and Bill Berkrot

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