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Tag: public policy

  • Lawmakers approve plan to rope in federal funding

    Lawmakers approve plan to rope in federal funding

    BOSTON — Massachusetts wants to rope in billions of dollars in federal infrastructure funds to fix crumbling roads and bridges and transition to clean energy, but the state needs to pony up some of its own money to get it.

    That will happen under a proposal, approved by the state Legislature on Thursday, that calls for leveraging state funds to go after billions of dollars in competitive federal grants that will be made available through President Joe Biden’s jobs and infrastructure law and other programs.

    The plan, filed last year by Gov. Maura Healey, will divert interest from the state’s reserve funds to create a “pay-as-you-go” capital fund to pursue a much larger pool of federal funds for infrastructure projects.

    Healey officials say the so-called rainy day fund, which is approaching $9 billion, generates an estimated $250 million in interest a year.

    “Remaining competitive, equitable, and affordable as a commonwealth means thinking creatively about our state’s finances and seizing opportunities,” Senate President Karen Spilka, D-Ashland, said in a prepared statement.

    “We have been fiscally prudent in building up the largest rainy day fund in Massachusetts’ history, which allows us to leverage our robust interest earnings to compete for federal dollars that will help us strengthen our infrastructure,” she said.

    If Healey signs the bill, as expected, it will require the state Comptroller to transfer interest from state reserves to the Commonwealth Federal Matching and Debt Reduction Fund when amounts exceed 10% of budgeted revenues of the previous fiscal year, provided that the balance of the fund hasn’t decreased in the previous year.

    Backers of the plan said it will pump up to $800 million into the capital fund over the next three years.

    Healey’s federal infrastructure czar, Quentin Palfrey, has pointed to more than $17.5 billion available from federal grant programs which he says provides an “unprecedented opportunity” to tap into federal funds to address some of the state’s most pressing infrastructure needs.

    The money would come from the Infrastructure Investment and Jobs Act, a $1.2-trillion spending bill signed by Biden in 2021. Federal infrastructure money is also available through the CHIPS and Science Act and the Inflation Reduction Act.

    Overall, Massachusetts stands to get $9.3 billion from the infrastructure law over the next five years, including at least $4.2 billion for roadway upgrades and $1.1 billion for bridge repairs, according to the Biden administration.

    At least $1.1 billion will be directed to improving water and sewer infrastructure and address outfalls that spew sewage into the Merrimack River, while at least $100 million will provide broadband internet coverage to rural communities.

    The state will also get $2.5 billion for upgrades on its public transit system. Other funding would be devoted to airport upgrades and incentives for drivers to switch to electric vehicles.

    It’s also slated to get $147 million to help expand high-speed broadband internet service to underserved regions of the state.

    But the state is also chasing after more than $17.5 billion in competitive grants made available through the infrastructure law for local governments to fix potholes and crumbling bridges, upgrade water and sewer systems and other needs.

    Healey officials say they will need to ante up at least $3 billion in state matching funds to be competitive in that process. The state has already earmarked $2 billion, they say.

    Money from the federal laws is already flowing into the state, including $108 million from the U.S. Department of Transportation to improve rail service in western and central Massachusetts.

    The state is also getting $1 billion in federal funding from the infrastructure law to help cover the cost of replacing two Cape Cod bridges.

    Republicans have expressed concerns about the Democratic governor controlling billions of dollars in federal funding and have sought to put guardrails on use of the money.

    Data provided by the Biden administration shows only about 25% of Massachusetts’ 5,229 bridges are in good condition. About 9% are considered structurally deficient.

    Besides structurally deficient bridges, many of the state’s roadways are in major disrepair, according to the White House.

    The Biden administration’s Infrastructure Report Card gave the state a grade of C-, saying there are at least 1,194 miles of highway in poor condition.

    Christian M. Wade covers the Massachusetts Statehouse for North of Boston Media Group’s newspapers and websites. Email him at cwade@cnhinews.com.

    By Christian M. Wade | Statehouse Reporter

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  • State uncovers $2.3M in welfare, food stamp fraud

    State uncovers $2.3M in welfare, food stamp fraud

    BOSTON — Investigators uncovered more than $2.3 million in welfare fraud in the most recent quarter, according to state Auditor Diana DiZoglio’s office.

    The office’s Bureau of Special Investigations looked into more than 1,235 cases during the final quarter of the fiscal year, from April 1 to June 30, and identified at least 176 instances of public assistance fraud, about 80% of which was in the Supplemental Nutrition Assistance Program, previously known as food stamps.

    The bureau, which has the power to investigate welfare fraud, said benefits paid from the food stamp program amounted to more than $1.9 million of the fraudulent activity in the previous quarter. At least $245,858 in fraudulent activity was related to MassHealth, the state’s Medicaid program, the agency said.

    Another $138,081 was uncovered in the state’s primary cash assistance program, known as Transitional Aid to Families with Dependent Children, DiZoglio’s office reported.

    Of the $2 million in welfare fraud, federal and state courts have so far recovered only $103,142 in restitution, the auditor’s office said.

    In the previous fiscal year, the auditor’s office uncovered more than $12.3 million worth of welfare fraud from about 780 cases that were looked into by investigators.

    DiZoglio said the bureau’s investigations are “making government work better by identifying fraud, waste, and abuse of tax dollars so that residents actually in need have access to support and services.”

    In fiscal 2022, the auditor’s office uncovered more than $13.5 million worth of welfare fraud from about 600 cases that were investigated.

    That was a 120% increase in the dollar value from a year earlier, when investigators uncovered about $6.1 million in fraud.

    Demand for food stamps and other public assistance has risen amid the economic fallout of the COVID-19 pandemic, and has remained high amid inflationary costs.

    As of April, more than 111,000 people in Massachusetts were receiving basic welfare benefits from the state’s main cash assistance program, according to the latest state data.

    Meanwhile, an additional 1 million people were getting food stamps as of March, according to the latest federal data. That’s more than double the pre-pandemic average of about 450,000 recipients.

    Under current law, a recipient is limited to receiving welfare for two years in any five-year period. A family of three in the program collects roughly $593 per month.

    In the fiscal year that gets underway July 1, the state plans to spend more than $300 million on cash assistance programs for welfare recipients.

    The state has tightened its welfare fraud rules in recent years following previous audits showing widespread abuse, including the names of dead people being used to claim benefits. The penalty for welfare fraud is up to 10 years in prison, in addition to repayment of the money.

    Advocates for the benefits programs point out that welfare fraud only accounts for a fraction of the cash assistance the state provides every year. They argue that the money devoted to investigating fraud would be better spent on expanding benefits for the needy.

    Christian M. Wade covers the Massachusetts Statehouse for North of Boston Media Group’s newspapers and websites. Email him at cwade@cnhinews.com.

    By Christian M. Wade | Statehouse Reporter

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  • Teachers union blasts use of ‘millionaires tax’ money

    Teachers union blasts use of ‘millionaires tax’ money

    BOSTON — Backers of the state’s “millionaires tax” are accusing the Healey administration of defying the will of voters by tapping into proceeds from the tax to close out the previous fiscal year budget.

    A supplemental budget filed by Gov. Maura Healey aimed at closing out the previous fiscal year budget calls for spending $225 million in “millionaires tax” proceeds to cover costs for grants to child care programs, universal free school meals, transportation service expansions and other items.

    But the Massachusetts Teachers Association, a chief proponent of the tax, is blasting the proposal to use the money this way, saying the funding needs should have been covered by other revenue sources.

    “Fair Share funds must be used to build upon the existing spending for public education and transportation, and not become dollars lost on balance sheets,” MTA President Max Page said in a statement. “Gov. Healey’s supplemental budget proposal defies the will of the voters and the spirit of Fair Share, which is raising money to grow our public education and transportation systems.”

    Voters approved the so-called Fair Share proposal in the 2022 elections, setting a new 4% surtax on people with incomes above $1 million a year. The state collected more than $2.1 billion from the tax in the previous year, exceeding projections by budget writers.

    A spokesman for the state’s Executive Office of Administration and Finance defended the governor’s proposal, saying the spending is in line with the intent of the voter-approved tax and the state budget.

    “Our administration has consistently demonstrated our commitment to fulfilling the will of the voters who approved the Fair Share surtax to support our education and transportation systems,” the agency said in a statement. “The supplemental budget filed by the Governor maintains that commitment by proposing to use a limited amount of surplus surtax for education and transportation programs like universal school meals and child care provider grants.”

    The approach, the agency said, “aligns with how surtax revenue was budgeted in Fiscal Year 2025 and is necessary to close Fiscal Year 2024 in balance.”

    Healey’s $714 million supplemental spending plan, which requires legislative approval, seeks to close funding gaps for public health, substance use treatment and education, and fund collective bargaining agreements with labor unions.

    It also calls for overhauling how Massachusetts approves renewable energy infrastructure projects, which has also drawn criticism from lawmakers who view it as an end-run around a stalled clean energy bill.

    The issue of how billions of dollars in proceeds from the tax will be spent by the state government was a key issue in the debate over the proposal.

    A chief criticism was claims by tax proponents that the money will be devoted exclusively to transportation and education spending were misleading.

    A 2022 report by Tufts University’s Center for State Policy Analysis ahead of the tax’s approval by voters warned that while the plan clearly stated the money must be devoted to education and transportation, not all the surtax revenue is likely to be spent in those areas.

    “The problem is fungibility, or the ease with which lawmakers can shift money between programs,” the report’s authors wrote. “There is nothing illegal or untoward about this approach; it’s a common part of legislative horse-trading.”

    The report estimates that for every dollar raised by the surtax, spending on the stated earmarks is likely to increase by 30 cents to 70 cents, with the remainder being “diverted to other areas of the budget,” they wrote.

    It also noted that revenue from the tax would be “highly volatile” and is likely to rise or fall sharply, depending on the economic conditions. The number of people paying the tax will increase gradually over time, the report noted.

    Supporters say taxing the rich means more money to improve neglected public schools, expand child care options, and fix potholed roads and crumbling bridges.

    Opponents argue the tax is hurting businesses and driving away corporate investment and job creators, while putting a drag on the state’s economy as it recovers from residual impacts of the pandemic.

    Christian M. Wade covers the Massachusetts Statehouse for North of Boston Media Group’s newspapers and websites. Email him at cwade@cnhinews.com.

    By Christian M. Wade | Statehouse Reporter

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  • Few prepared to cover long-term care costs

    Few prepared to cover long-term care costs

    Editor’s note: The share of the U.S. population older than 65 keeps rising – and will for decades to come. Since nearly half of Americans over 65 will pay for some version of long-term health care, CNHI News and The Associated Press examined the state of long-term care in the series High Cost of Long-Term Care, which began Friday and continues this week.

    While many Americans will need long-term care as they get older, few are prepared to pay for it.

    Medicare, which provides Americans over the age 65 with health insurance, doesn’t cover most long-term care services. And Medicaid — the primary safety net for long-term care coverage — only covers those who are indigent.

    Federal estimates suggest 70% of people ages 65 and older will need long-term care before they die, but only 3% to 4% of Americans age 50 and older are paying for long-term care policies, according to insurance industry figures.

    The high cost of premiums for those private long-term care policies puts it out of reach for most people.

    Even some who have this kind of insurance find it doesn’t provide enough to cover the costs of home health aides, assisted-living facilities or nursing homes.

    “People think that long-term care insurance is for everyone — but it is not,” said Jessie Slone, executive director of the American Association for Long-term Care Insurance, an advocacy group. “It’s for a very small subset of individuals who plan, and have some retirement assets and income they can use to pay for it.”

    To qualify, applicants need to pass a health review. Slone said insurance companies have underwriting policies with “page after page” of conditions that will disqualify people from getting that coverage.”If you live a long life, the chances of you needing care are significant. So then the issue becomes who’s going to provide for that care, and who’s going to pay for it. For some, long-term care insurance is an option.”

    Prices vary, based on the age when people apply, how good their health is at the time, and how much coverage they want. “You have to start looking at this generally in your 50s or 60s,” Slone said. “Because, as you get older, you’re going to have conditions which insurers are going to look at, determine that you’re very likely to need long-term care and not give you a policy.”

    That coverage, if you can get it, doesn’t come cheap: In 2023, the annual average cost for a policy for a couple both age 55, taking out a $165,000 initial pool growing at 3% compounded annually — ranged from a low of $5,018 to $14,695 a year, according to the association.

    But, compared to auto insurance — which most people may never use — long-term care insurance is a good investment for those who can afford it, Slone said. “Car insurance is the most expensive insurance you ever pay because the chances of you getting into a car accident are somewhat remote. But the chances of someone needing long-term care if they make it to 90 are pretty significant.”

    Lori Smetanka, executive director of the National Consumer Voice for Quality Long-Term Care, a national nonprofit advocacy group, views it differently. She said the private long-term care insurance system has become a “bust” amid rising premiums and difficulties accessing benefits.

    Consider the fact that the number of companies offering long-term care insurance is declining, while payouts are steadily increasing as the baby boomer generation ages.”Most people have found it very expensive,” Smetanka said. “But, at the same time, people are finding that it wasn’t covering what they needed.”

    Last year, insurers paid a record of more than $14 billion to cover an estimated 353,000 long-term care claims, according to industry figures. That’s compared to about $11.6 billion just three years ago.

    Currently, there are about 7.5 million people in the U.S. age 65 and older with private long-term care insurance, according to industry data.

    With that incentive, some states, including Washington and California, are looking at creating long-term care social insurance pools funded by payroll taxes and other sources of funding. The effort also is being spurred, in part, by the rising costs borne by states for Medicaid long-term care coverage, which they share with the federal government.

    “More and more states are coming to the conclusion that this is an under-funded system,” said Marc Cohen, a researcher and co-director of the LeadingAge LTSS Center at the University of Massachusetts at Boston. “There are simply not enough dollars going into the system – given the needs and the demands of the growing elderly population.”

    So far, Washington is the only state to try to address the issue. A law approved by the state Legislature in 2019 created a long-term care benefit program, which provides residents with up to $36,500 to pay for costs such as caregiving, wheelchair ramps, meal deliveries and nursing home fees.

    The Cares Funds is covered by a payroll tax that deducts 0.58% out of paychecks but guarantees a $36,500 lifetime benefit for those who have paid into the fund for 10 years.

    Several other states are studying the issue. In California, a task force is looking at how to design a long-term care program, according to the National Conference of State Legislatures. Massachusetts, Illinois and Michigan also are weighing the costs versus benefits of creating a state long-term care benefits program.

    But the issue of imposing new taxes to pay for long-term care insurance is controversial — and politically unpopular — on both a state and federal level.

    Washington’s long-term care insurance law is facing a repeal effort from a group backed by hedge fund executive Brian Heywood that argues the system should be voluntary. Voters in November will decide whether to allow people to opt out, which supporters say would essentially gut the program.

    “There are a lot of states that are looking to see what happens in Washington,” Cohen said. “If this billionaire who is funding this repeal effort wins, it will be a real blow.”

    Cohen said efforts on a federal level to create a publicly funded insurance pool haven’t gained much traction. A long-term care program created by Congress through the CLASS Plan, which was tied to the Affordable Care Act, was voluntary. That law was repealed in early 2013.

    “It never got off the ground before it was repealed,” he said. “With the dysfunction in Congress, we’re likely to see more action on a state level than the federal.”

    Recent polls suggest there may be some public support for the move. A survey by the National Council on Aging found more than 90% of the 1,000 female respondents across party lines support the idea of creating a government program to pay for the cost of long-term care.

    “The level of support was significant, and very bipartisan,” said Howard Bedlin, a long-term care expert with the council. “People keep talking about how Congress can’t find bipartisan support. Well, the voters clearly support it.

    “The politicians just aren’t giving these issues the attention they deserve.”

    Christian M. Wade is a reporter for North of Boston Media Group.

    By Christian M. Wade | CNHI News

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  • Safety net hospital fund shortfall widening

    Safety net hospital fund shortfall widening

    BOSTON — Lawmakers are seeking more support for the state’s safety net hospitals amid rising concerns about the fiscal health of a fund that helps cover medical costs for large numbers of uninsured and low-income patients.

    Hospitals and health insurers pay into the so-called safety net fund – a pool of money that helps fund care for hundreds of thousands of low-income residents who are uninsured or underinsured – with the state chipping in additional funding. But if the fund runs low, hospitals are on the hook for the shortfall.

    The fund is projected to have a shortfall of more than $220 million in the upcoming fiscal year, hospitals say, rising to the highest level in nearly two decades.

    Without additional funding, financially challenged hospitals will be forced to cover the deficit, leaving less money to provide medical care for low-income and uninsured patients, they say.

    An amendment to the Senate’s version of the $57.9 billion state budget filed by Sen. Barry Finegold, D-Andover, would require commercial health insurance companies to cover 50% of any revenue shortfalls in the safety net fund.

    “We need to do something to help our local hospitals,” Finegold said. “This is part of a long-term problem with funding for hospitals that serve the state’s most vulnerable residents. We need to fix it.”

    Many earmarks

    Finegold’s proposal is one of more than 1,000 amendments to the Senate’s budget, many of them local earmarks seeking to divert more state money to local governments, schools, cash-strapped community groups and nonprofits. Only a handful will likely make it into the Senate’s final spending package.

    The plan faces pushback from the Massachusetts Association of Health Plans, which represents commercial insurers who would be impacted by the proposed changes to the hospital safety net program.

    Lora Pellegrini, the group’s president and CEO, said requiring insurers to cover the fund’s shortfalls would jeopardize negotiations between the state Department of Health and Human Services and the U.S. Centers for Medicare and Medicaid Services that seek to reduce assessments paid by medical insurance carriers.

    “This really came out of nowhere, and would be counterproductive to those efforts,” she said. “We have a committee process for a reason and that’s where these kinds of special interest issues should be vetted, not in the budget.”

    But the move is backed by the Massachusetts Health and Hospital Association, which says requiring insurers to cover the shortfall would help alleviate an “unmanageable financial burden” on the health care system “by broadening funding support for the program.”

    “The Health Safety Net is a vital component of Massachusetts’ healthcare infrastructure and its ability to cover the costs of care for low-income and uninsured patients,” Daniel McHale, MHP’s vice president for Healthcare Finance & Policy, said in a statement.

    “At this increasingly fragile time for the entire health care system, it is imperative that we take the steps needed to stabilize the safety net for the people and providers who rely on it each day.”

    Local hospitals affected

    The state’s safety net hospitals and community health centers – which include Lawrence Hospital, Salem Hospital, Holy Family Hospital in Methuen and Anna Jaques Hospital in Newburyport – serve a disproportionate percentage of low-income patients.

    Many are heavily dependent on Medicaid reimbursements, which are typically less than commercial insurance payouts.

    Nearly 30% of Lawrence General’s gross revenue is for care provided to Medicaid, or MassHealth, patients. The state average is 18%.

    Many community hospitals are collecting from low-paying government insurance programs, and getting below-average reimbursements from commercial insurers, advocates say.

    Lawmakers also swept money from the hospital safety net fund to help cover the costs of new Medicare savings programs that pay some or all of eligible senior citizen’s premiums and other health care costs, including prescriptions.

    Hospitals are also seeing increased demand from uninsured patients as hundreds of thousands of Medicaid recipients see their state-sponsored health care coverage dropped following the end of federal pandemic-related programs, which is driving up costs. Claims processing problems are another factor adding to hospital costs, they say.

    Those and other factors have widened the fund’s shortfall from $68 million in fiscal 2022 to more than $210 million in the previous fiscal year, according to the hospital association. Combined, the shortfall could reach $600 million for the three fiscal years, the association said.

    Biggest expense

    The House, which approved its $58.2 billion version of the state budget two weeks ago, proposed $17.3 million in state funding for the hospital safety net fund. The Senate, which begins debate on its version of the budget next week, has proposed a similar amount.

    In the current budget, the state allocated $91.4 million for the safety net fund.

    But the House budget didn’t include an amendment requiring insurers to help hospitals pay the shortfall. That means even if the Senate approves Finegold’s amendment, it would still need to be negotiated as part of the final budget before landing on Gov. Maura Healey’s desk for consideration.

    Health care coverage, in the meantime, is one of the state’s biggest expenses. Medicaid costs have doubled in the past decade and now account for nearly 40% of state spending.

    MassHealth serves more than 2 million people – roughly one-third of the state’s population – despite federal Medicaid redeterminations that have reduced its rolls over the past year.

    By Christian M. Wade | Statehouse Reporter

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  • Federal Reserve Chair Jerome Powell hints at more bad news for borrowers | CNN Business

    Federal Reserve Chair Jerome Powell hints at more bad news for borrowers | CNN Business


    Washington, DC
    CNN
     — 

    Additional interest rate hikes are still on the table and rates could remain elevated for longer than expected, Federal Reserve Chair Jerome Powell said Friday.

    Delivering a highly anticipated speech at the Kansas City Fed’s annual economic symposium in Jackson Hole, Wyoming, Powell again stressed that the Fed will pay close attention to economic growth and the state of the labor market when making policy decisions.

    “Although inflation has moved down from its peak — a welcome development — it remains too high,” Powell said. “We are prepared to raise rates further if appropriate, and intend to hold policy at a restrictive level until we are confident that inflation is moving sustainably down toward our objective.”

    The Fed chief’s annual presentation at the symposium, which has become a major event in the world of central banking, typically hints at what to expect from monetary policy in the coming months.

    Powell’s speech wasn’t a full-throated call for more rate hikes, but rather a balanced assessment of inflation’s evolution over the past year and the possible risks to the progress the Fed wants to see. He made it clear the central bank is retaining the option of more hikes, if necessary, and that what Fed officials ultimately decide will depend on data.

    US stocks opened higher before Powell’s speech, tumbled in late morning trading and then rose again.

    The Fed raised its benchmark lending rate by a quarter point in July to a range of 5.25-5.5%, the highest level in 22 years, following a pause in June. Minutes from the Fed’s July meeting showed that officials were concerned about the economy’s surprising strength keeping upward pressure on prices, suggesting more rate hikes if necessary. Some officials have said in recent speeches that the Fed can afford to keep rates steady, underscoring the intense debate among officials on what the Fed should do next.

    Financial markets still see an overwhelming chance the the Fed will decide to hold rates steady at its September meeting, according to the CME FedWatch tool, given that inflationary pressures have continued to wane.

    Here are some key takeaways from Powell’s speech.

    Chair Powell said there is still a risk that inflation won’t come down to the Fed’s 2% target as the central bank faces the proverbial last mile in its battle with higher prices.

    “Additional evidence of persistently above-trend growth could put further progress on inflation at risk and could warrant further tightening of monetary policy,” Powell said.

    Concerns over the economy running too hot for the Fed’s comfort only recently emerged.

    Economic growth in the second quarter picked up from the prior three-month period and the Atlanta Fed is currently estimating growth will accelerate even more in the third quarter.

    That could be a problem for the Fed, since the central bank’s primary mechanism for fighting inflation is by cooling the economy through tweaking the benchmark lending rate.

    Generally, if demand is red hot, employers will want to hire to meet that demand. But many firms continue to have difficulty hiring, according to business surveys from groups such as the National Federation of Independent Business. In theory, that could prompt wage increases in order to secure talent — and those higher costs could then be passed on to consumers.

    “if you’re a policymaker, you’re looking at the level of output relative to your estimate of what’s sustainable for maximum employment and 2% inflation,” William English, finance professor at Yale University who worked at the Fed’s Board of Governors from 2010 to 2015, told CNN. “So what does that mean for monetary policy? That may mean that they need rates to be higher for longer than they thought to get the economy on to that desirable trajectory, but there are a lot of questions around that force, and a lot of uncertainty.”

    Cleveland Fed President Loretta Mester is one of the Fed officials backing a more aggressive stance on fighting inflation.

    “We’ve come come a long way, but we don’t want to be satisfied, because inflation remains too high — and we need to see more evidence to be assured that it’s coming down in a sustainable way and in a timely way,” Mester said in an interview with CNBC after Powell’s remarks.

    Meanwhile, some other officials think there will eventually be enough restraint on the economy and that more hikes could cause unnecessary economic damage. The lagged effects of rate hikes on the broader economy are a key uncertainty for officials, since it’s not clear when exactly those effects will fully take hold. Research suggests it takes at least a year.

    “We are in a restrictive stance in my view, and we’re putting pressure on the economy to slow inflation,” Philadelphia Fed President Patrick Harker told Bloomberg in an interview Friday after Powell’s speech. “What I’m hearing — and I’ve been around my district all summer talking to people — is ‘you’ve done a lot very quickly.’”

    Powell pointed to the steady progress on inflation in the past year: The Fed’s preferred inflation gauge — the Personal Consumption Expenditures price index — rose 3% in June from a year earlier, down from the 3.8% rise in May. The Commerce Department officially releases July PCE figures next week, though Powell already previewed that report in his speech. He said the Fed’s favorite inflation measure rose 3.3% in the 12 months ended in July.

    The Consumer Price Index, another closely watched inflation measure, rose 3.2% in July, a faster pace than the 3% in June, though underlying price pressures continued to decelerate that month.

    In his speech Friday, Powell stood firmly by the Fed’s current 2% inflation target, which was formalized in 2012 — at least for now. The Fed is set to review its policy framework around 2025, which could be an opportunity to establish a new inflation target.

    Harvard economist Jason Furman said in an op-ed published in The Wall Street Journal this week that the central bank should aim for a different inflation goal, which could be something slightly higher than 2% or even a range of between 2% and 3%.

    For now, Powell has made it clear he is sticking with the stated inflation target.

    Still, inflation’s progress has hyped up not only American consumers and businesses, but also some Fed officials.

    Chicago Fed President Austan Goolsbee reiterated to CNBC Friday that he still sees “a path to a soft landing,” a scenario in which inflation falls down to target without a spike in unemployment or a recession.

    Powell also weighed in on an ongoing debate among economists about whether the “neutral rate of interest,” also known as r*, is higher since the economy is still on strong footing despite the Fed’s aggressive pace of rate hikes.

    In theory, the neutral rate is when real interest rates neither restrict nor stimulate growth. The Fed chair said higher interest rates are likely pulling on the economy’s reins, implying that r* might not be structurally higher, though he said it’s an unobservable concept.

    “We see the current stance of policy as restrictive, putting downward pressure on economic activity, hiring, and inflation. But we cannot identify with certainty the neutral rate of interest, and thus there is always uncertainty about the precise level of monetary policy restraint,” Powell said.

    Either way, while the Fed chief hinted that more rate hikes might be coming down the pike, there’s no guarantee either way.

    The Fed paused its historic inflation fight for the first time in June, mostly based on uncertainty over how the spring’s bank stresses would affect lending. The central bank could decide to pause again in September over uncertainty as it waits for more data.

    “We think that the Fed is more likely to take a wait-and-see approach with the data and try to understand a little bit more about why the labor market is remaining so strong, even despite the inflationary experience that we’ve had and the higher interest rates in the economy,” Sinead Colton Grant, head of investor solutions at BNY Mellon Wealth Management, told CNN in an interview.

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  • Supreme Court rejects Texas and Louisiana challenge to Biden deportation priorities | CNN Politics

    Supreme Court rejects Texas and Louisiana challenge to Biden deportation priorities | CNN Politics



    CNN
     — 

    The Supreme Court, in an 8-1 ruling on Friday, revived the Biden administration’s immigration guidelines that prioritize which noncitizens to deport, dismissing a challenge from two Republican state attorneys general who argued the policies conflicted with immigration law.

    The court said the states, Texas and Louisiana, did not have the “standing,” or the legal right, to sue in the first place in a decision that will further clarify when a state can challenge a federal policy in court going forward.

    The ruling is a major victory for President Joe Biden and the White House, who have consistently argued the need to prioritize who they detain and deport given limited resources. By ruling against the states, the court tightened the rules concerning when states may challenge federal policies with which they disagree. The Biden administration policy was put on pause by a federal judge nearly two years ago and the Supreme Court declined to lift that hold last year.

    Justice Brett Kavanaugh wrote Friday’s majority opinion in the case.

    “In sum, the states have brought an extraordinarily unusual lawsuit,” Kavanaugh wrote, in an opinion joined by Chief Justice John Roberts, and Justices Sonia Sotomayor, Elena Kagan and Ketanji Brown Jackson. “They want a federal court to order the Executive Branch to alter its arrest policies so as to make more arrests. Federal courts have not traditionally entertained that kind of lawsuit; indeed, the States cite no precedent for a lawsuit like this.”

    Kavanaugh said that the executive branch has traditional discretion over whether to take enforcement actions under federal law. He said that if the court were to allow the states to bring the lawsuit at hand, it would “entail expansive judicial direction” of the executive’s arrest policy and would open the door to more lawsuits from states that think the executive is not doing enough to enforce the law in other areas such as drug and gun regulation and obstruction of justice laws.

    “We decline to start the Federal Judiciary down that uncharted path,” Kavanaugh said.

    Homeland Security Secretary Alejandro Mayorkas said the administration welcomes the court’s ruling and that his department looks forward to using the immigration guidelines.

    The guidelines “enable DHS to most effectively accomplish its law enforcement mission with the authorities and resources provided by Congress,” Mayorkas said.

    Justice Neil Gorsuch, joined by Justices Clarence Thomas and Amy Coney Barrett, wrote a concurring an opinion that concluded that the states also lacked standing, but for different reasons than the majority opinion. Justice Samuel Alito dissented.

    At the heart of the dispute was a September 2021 memo from Mayorkas that laid out priorities for the apprehension and removal of certain non-citizens, reversing efforts by former President Donald Trump to increase deportations.

    In his memo, Mayorkas stated that there are approximately 11 million undocumented or otherwise removable non-citizens in the country and that the United States does not have the ability to apprehend and seek to remove all of them. As such, the Department of Homeland Security sought to prioritize those who pose a threat to national security, public safety and border security.  

    Kavanaugh’s opinion stressed that the standing doctrine “helps safeguard the Judiciary’s proper – and properly limited – role in our constitutional system.” He said that by ensuring a party has standing to sue, “federal courts prevent the judicial process from being used to usurp the powers of the political branches.”

    The majority did not address the underlying question of whether the administration had the authority to implement the policy.

    “We take no position on whether the executive branch here is complying with its legal obligations under §1226(c) and §1231(a)(2),” Kavanaugh wrote, referring to the relevant immigration statutes. “We hold only that the federal courts are not the proper forum to resolve this dispute.”

    Kavanaugh pointed out that five presidential administrations have determined that resource constraints necessitated prioritization in making immigration arrests.

    In his sole dissent, Alito wrote that this “sweeping executive power endorsed by today’s decision may at first be warmly received by champions of a strong Presidential power, but if presidents can expand their powers as far as they can manage in a test of strength with Congress, presumably Congress can cut executive power as much as it can manage by wielding the formidable weapons at its disposal.”

    “That is not what the Constitution envisions,” he wrote.

    Steve Vladeck, a CNN Supreme Court analyst who filed an amicus brief in the immigration case, noted that Friday’s ruling was the second decision within the last week in which the court “held that red states lacked standing to challenge a federal policy – perhaps a signal of dissatisfaction with how liberally lower courts, especially the Fifth Circuit, have permitted these challenges to go forward.”

    “And it’s the second in the last two years in which it has reversed a nationwide injunction against a Biden immigration policy in a suit brought by Texas,” Vladeck said. “When states are the right plaintiffs to challenge federal policies is also one of the central issues before the court in the challenges to Biden’s student loan program – in which the court is expected to rule next week.”

    Kavanaugh’s opinion emphasized that, in “holding that Texas and Louisiana lack standing, we do not suggest that federal courts may never entertain cases involving the executive branch’s alleged failure to make more arrests or bring more prosecutions.”

    In court, US Solicitor General Elizabeth Prelogar stressed that Congress has never provided the funds to detain everyone, prompting different administrations to consider how to prioritize limited funds. She noted that the executive branch retains the authority to focus its “limited resources” on non-citizens who are higher priorities for removal and warned that if the states were to prevail, it would “scramble” immigration enforcement on the ground, leading to a totally unmanageable landscape. She said the states’ view in the case was a “senseless” way to run an immigration system.

    “I think that that is bad for the executive branch. I think it’s bad for the American public and I think it’s bad for Article Three courts,” she said.  

    The guidelines call for an assessment of the “totality of the facts and circumstances” instead of the development of a bright-line rule. The government lists aggravating factors weighing in favor of an enforcement action, including the gravity of the offense and the use of a firearm, but it also lists mitigating factors that include the age of the immigrant. 

    Texas Solicitor General Judd Stone, representing Texas and Louisiana, argued that the administration lacked the authority to issue the memo because it conflicts with existing federal law. He accused the government of treating immigration law in the area as “discretionary” and not “mandatory” and argued that the executive branch lacks the authority to “disregard” Congress’ instruction.

    “The states prove their standing at trial based on harms well recognized,” Stone said, emphasizing the costs incurred when the government “violates federal law.”

    A district court judge blocked the guidelines nationwide. “Using the words ‘discretion’ and ‘prioritization’ the executive branch claims the authority to suspend statutory mandates,” ruled Judge Drew Tipton, a Trump appointee on the US District Court for the Southern District of Texas. “The law does not sanction this approach.” 

    A federal appeals court declined to issue a stay of the decision, prompting the Biden administration to ask the Supreme Court for emergency relief last July. A 5-4 court ruled against the administration, allowing the lower court’s decision to remain in effect while the legal challenge played out.

    Conservative Justice Amy Coney Barrett joined her three liberal colleagues in dissent without providing any explanation for her vote.  

    This story has been updated with additional details.

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  • Trump and Le Pen backed these Dutch farmers — now they’ve sprung an election shock | CNN

    Trump and Le Pen backed these Dutch farmers — now they’ve sprung an election shock | CNN



    CNN
     — 

    A farmers’ protest party in the Netherlands has caused a shock after winning provincial elections this week just four years after their founding. Could their rise have wider implications?

    The Farmer-Citizen Movement or BoerburgerBeweging (BBB) grew out of mass demonstrations against the Dutch government’s environmental policies, protests that saw farmers using their tractors to block public roads. The BBB is now set to become the largest party in the Dutch senate.

    The developments have thrown the Dutch government’s ambitious environmental plans into doubt and are being watched closely by the rest of Europe.

    The movement was powered by ordinary farmers but has become an unlikely front in the culture wars. Donald Trump and Marine Le Pen have voiced support, while some in the far right see the movement as embodying their ideas of elites using green policies to trample on the rights of individuals.

    On Wednesday, the Farmer-Citizen Movement landed a large win in regional elections, winning more seats in the senate than Prime Minister Mark Rutte’s conservative VVD party.

    The first exit poll showed the party was due to win 15 of the Senate’s 75 seats with almost 20 per cent of the vote. Meanwhile Rutte’s ruling VVD party dropped from 12 to 10 seats – leaving it without a Senate majority. Results on Thursday showed the BBB party had won the most votes in eight of the country’s 12 provinces.

    Wednesday’s election win is significant as it means the party is now set to be the largest in the Upper House of Parliament, which has the power to block legislation agreed in the Lower House – throwing the Dutch government’s environmental policies into question.

    As the election results emerged overnight on Wednesday, BBB leader Caroline van der Plas told domestic broadcaster Radio 1: “Nobody can ignore us any longer.

    “Voters have spoken out very clearly against this government’s policies.”

    Newspapers described the election outcome this week as a “monster victory” for the Farmer-Citizen Movement, which has enjoyed support from sections of society who feel unsupported by Rutte’s VVD party.

    For Arjan Noorlander, a political reporter in the Netherlands, the provincial election results this week have made the country’s political future very hard to predict. “It’s a big black hole what will happen next,” he told CNN.

    “They don’t have a majority so they would have to negotiate to form a cabinet and we have to wait and see what the impact will be.”

    Tom-Jan Meeus, a journalist and political columnist in the Netherlands, believes Wednesday’s result is reflective of a “serious dissatisfaction” with traditional politics in the country.

    “This party is definitely part of that trend,” he told CNN.

    “However, it’s new in that it has a different agenda from previous anti-establishment parties but it fits in the bigger picture that has been around here for 25 years now.”

    Meeus believes that the shock rise in support for the BBB party largely comes from those living in small, rural villages who feel disillusioned by government policies.

    “Although it’s a small country, there’s this perception that people living in the western, urbanized part of the country are having all the goods from government policies, and people living in the countryside in small villages believe that the successful people in Amsterdam, in the Hague, in Utrecht are having the goods, and they suffer from it.

    “So the feeling is that the less successful, less smart people are trapped by a government who doesn’t understand what their problems are.”

    Noorlander agrees the main topic they’ve been talking about recently is the position of the farmers in the Netherlands, because of “the pollution and environmental rules mainly made in Brussels by the EU, they were pushing against that.”

    “They want farmers to have a place in the Netherlands. That’s their main topic but it became broader in these last few months. It’s become the vote of people living in these farming areas, outside the big cities, against the people in the big cities making the policies and being more international.”

    The Farmer-Citizen Movement was established four years ago in response to the government’s proposals for tackling nitrogen emissions.

    The Dutch government launched a drive to slash emissions in half by 2030, pointing the finger at industrial agriculture for rising levels of pollution that were threating the country’s biodiversity.

    The BBB party has fought back against the measures – which include buying farmers out and reducing livestock numbers – instead placing emphasis on the farmers’ livelihoods that are at risk of being destroyed.

    Farmers have protested against the government’s green policies by blocking government buildings with tractors and dumping manure on motorways.

    Meeus believes that this week’s election win for the BBB means the agenda to tackle the nitrogen crisis is now in “big trouble.”

    “This vote obviously is a statement from a big chunk of the voters to say no to that policy,” he said.

    According to Ciarán O’Connor, a Senior Analyst at the Institute for Strategic Dialogue, says the BBB have built a platform off the back of the protest movement for their party being the representative of the ‘true people.’

    The BBB, he says, “have been one of the leading driving forces behind getting people out to protest but also shaping the ideologies and beliefs that power a lot of the movement; rejecting or disputing climate change or, at least, measures that would negatively impact farmers livelihoods and businesses; wider EU skepticism; burgeoning anti-immigration and anti-Islam views too.”

    Former US President Donald Trump has promoted the protest at various points during his speeches in the past year. At a rally in Florida last July, he told crowds: “Farmers in the Netherlands of all places are courageously opposing the climate tyranny of the Dutch government.”

    The Farmer-Citizen Movement has also won support from the far-right.

    A report from The International Centre for Counter-Terrorism describes how what began as local protests got the attention of extremists and conspiracists, in particular seeing it as proof of the so-called “Great Reset” theory of global elites using the masses for their own benefit.

    According to O’Connor, the movement aligns with a populist viewpoint of climate action as a new form of tyranny imposed by out-of-touch governments over ordinary citizens.

    “One of the tactics used by the Dutch farmers’ protest movement has been using tractors to create blockades. International interest in the farmers’ protest movement, and this method of protest, really grew in 2022 not long after the Canadian trucker convoy that was organized and promoted by a number of far-right figures in Canada, the US and internationally too,” he said.

    “For many far-right figures, this movement was viewed as the next iteration of that ‘convoy’ type of protest and they viewed it as a people’s protest mobilising against tyrannical or out-of-touch governments.”

    For some analysts, however, for the far right to claim the Dutch protests is premature.

    “I wasn’t incredibly impressed by that,” Meeus said. “Generally the perception of the problem that was in the heads of the far-right people from Canada and the United States was pretty far off, as far as I’ve seen.

    “It remains to be seen whether the Farmer-Citizen Movement will present itself as a far-right party.”

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  • Japan nominates new central bank leader in possible move away from ultra-easy policy | CNN Business

    Japan nominates new central bank leader in possible move away from ultra-easy policy | CNN Business


    Hong Kong
    CNN
     — 

    The Japanese government has nominated Kazuo Ueda to lead its central bank, in a surprise move that could pave the way for the country to wind down its ultra-loose monetary policy.

    If appointed, Ueda — a 71-year-old university professor and a former Bank of Japan (BOJ) board member — would succeed Haruhiko Kuroda, the country’s longest serving central bank chief and the architect of its current yield curve control policy (YCC). His term ends on April 8.

    Ueda’s nomination must be approved by both houses of parliament, each is currently controlled by the ruling coalition, before the government of Prime Minister Fumio Kishida can formally appoint him for a five-year term.

    Analysts believe Ueda’s appointment could increase the odds that the BOJ will exit its prolonged ultra-easy monetary policy, which is increasingly difficult to maintain at a time when inflationary pressure is rising and other central banks are hiking rates aggressively.

    “Investors reckoned that the pick of Ueda-san is a signal to pave the way [for BOJ] to exit the ultra-loose policy,” said Ken Cheung, chief Asian foreign exchange strategist at Mizuho Bank.

    “[The] chance for ending the yield curve control policy and negative interest rate[s] has been increasing,” he said, but adding that the BOJ’s monetary policy will likely stay “accommodative.”

    The yield curve control policy is a pillar of the central bank’s effort to keep interest rates low and stimulate the economy.

    Accommodative is a term used to describe monetary policy that adjusts to adverse market conditions and usually involves keeping interest rates low to spur growth and employment.

    The BOJ has implemented an ultra-easy policy since Kuroda took the reins in 2013. In 2016, after years of aggressive bond buying failed to push up prices, it introduced the yield curve control program, where it bought targeted amounts of bonds to push down yields, in order to stoke inflation and stimulate growth.

    As part of that program, the central bank targeted some short-term interest rates at an ultra-dovish minus 0.1% and aimed for 10-year government bond yields around 0%.

    But as prices rose and interest rates elsewhere went up, pressure has grown on the BOJ to wind down YCC.

    In December, the BOJ shocked global markets by allowing the 10-year government bond yield to move 50 basis points on either side of its 0% target, in a move that stoked speculation the central bank may follow the same direction as other major economies by allowing rates to rise further.

    The unexpectedly hawkish decision caused stocks to tumble, while sending the yen and bond yields soaring.

    But Kuroda later dismissed a near-term exit from his ultra-loose monetary policy.

    When local media first reported Friday that Ueda would be nominated as the next BOJ governor, the yen jumped against both the US dollar and the euro.

    “Investors interpreted the news as signaling a hawkish turn,” said Stefan Angrick, senior economist at Moody’s Analytics.

    “But it will take time for the implications to become clear,” he said. “With demand-driven price pressure still preciously scarce and stronger wage gains yet to materialize, it’s hard to see the BOJ rush towards tightening under a new governor.”

    On Friday, Ueda told reporters that he thinks “the current BOJ policy is appropriate” and “monetary easing must carry on given the current state.”

    In an opinion piece published last July in the Nikkei, Ueda warned against prematurely raising rates.

    However, in the same piece, he also noted the BOJ should prepare an exit strategy, saying that a “serious” examination is needed at some point on the unprecedented monetary easing framework, which has continued far longer than most would expect.

    “We don’t think he is expected to immediately change the BOJ’s policy stance based on his previous remarks,” said Min Joo Kang, senior economist at ING Group, in a recent research report.

    “He [Ueda] is likely to shift monetary policy only gradually and the BOJ’s data dependency – inflation and wage growth – will become more important.”

    Japan’s economy remains weak, highlighting the tough task ahead for Ueda.

    According to the latest data from Tuesday, Japan’s economy grew by an annualized 0.6% in the fourth quarter of 2022, reversing a 0.8% contraction in the third quarter. But it was much weaker than the consensus forecast of 2% expansion.

    “We believe that the modest recovery will continue this year, but today’s data support[s] the Bank of Japan’s argument that the recovery is still fragile and that easy monetary policy is needed,” said ING analysts. “The incoming new governor will find it difficult to start any normalization.”

    – CNN’s Junko Ogura contributed reporting

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  • What Winning Did to the Anti-abortion Movement

    What Winning Did to the Anti-abortion Movement

    In a normal year, the March for Life would begin somewhere along the National Mall. The cavalcade of anti-abortion activists in Washington, D.C., would wind around museums and past monuments, concluding at the foot of the Supreme Court, a physical representation of the movement’s objective: to overturn Roe v. Wade. The march happens in January of each year to coincide with the anniversary of the Roe decision.

    But this is not a normal year. Tomorrow’s march will be the first without Roe on the books.

    In recognition of that fact, the march has a new route. It will finish somewhere on First Street, between the Capitol and the Court building, an acknowledgment of the enormous and somewhat nebulous task ahead: banning or restricting abortion in all 50 states. That task will involve not only Congress, the courts, and the president but also 50 individual state legislatures, thousands of lawmakers, and all of the American communities they represent.

    At the march, activists and other attendees will be jubilant. Speakers will congratulate their fellow marchers on a job well done. Yet at the same time, a current of uncertainty ripples beneath the surface of the anti-abortion movement. Advocates are technically closer than ever to ending abortion in America, but in some ways, the path forward is more treacherous now than it was before. The movement is not in disarray, exactly, but its energy is newly decentralized, diffused throughout the country.

    “There’s a much more choose-your-own-adventure feel” to the movement now, Mary Ziegler, a University of California, Davis School of Law professor who has written about abortion for The Atlantic, told me.

    Overturning Roe was only the first step. The next isn’t exactly obvious.

    Since the 1980s, rescinding the Supreme Court’s 1973 ruling in Roe, which established a nationwide right to abortion, had been the movement’s top goal, because it was the key that unlocked everything else. There could be no real prohibitions on abortion as long as Roe was in effect. Charging into battle was easier under a single banner, with resources and energy directed toward a single national project: filling the Supreme Court with abortion foes.

    Now, though, across all 50 states, different leaders are pressing for abortion restrictions of varying types and degrees: heartbeat bans, gestational limits, restrictions on the abortion pill, or outright bans with few or no exceptions.

    America’s anti-abortion movement has always been a rich tapestry. Although its members share an overarching goal—ending abortion—they have disagreed on tactics and approach. Some groups—including Susan B. Anthony Pro-Life America, Americans United for Life (AUL), and the National Right to Life Committee (NRLC)—have prioritized legal and political strategies; others, including many Catholic organizations, have advocated more for funding the country’s 2,700 pregnancy centers or expanding the social safety net. But there was always a power hierarchy among these groups. “If you were wondering where the bills came from, the lawsuits, it was obvious: A handful of national groups dictated everything,” Ziegler said. The NRLC and AUL organized the troops and drafted model legislation. They planned judicial strategy and pushed court cases forward.

    In the post-Roe world, those groups are less powerful and less relevant. The central players now are the thousands of state-level politicians, local leaders, and grassroots activists who are writing and passing legislation, often independent of those once-dominant national groups.

    The influence of the national groups has been waning since even before the fall of Roe. A Texas pastor and a former state solicitor general, for example, came up with Texas’s 2021 S.B. 8, which banned abortion once a fetal heartbeat was detectable (typically after six weeks) and authorized private citizens to sue abortion providers. The two men did so without much input from any national group, according to the experts I spoke with. Abortion restrictions in Alabama and Georgia, which passed in 2019 and went into effect in 2022, were drafted by different state activists and leaders and contain starkly different language, showing little influence from national groups.

    The national anti-abortion movement clearly wasn’t ready for this flurry of activity. But it could have been better prepared, Daniel K. Williams, a history professor at the University of West Georgia, told me. When Amy Coney Barrett was nominated to the Court, or even as soon as Trump was elected president, national organizations could have put forward a single model law for lawmakers, and uniform guidance for health-care providers and hospitals. Instead, America ended up with a chaotic patchwork of abortion restrictions—a mixture of newly written trigger laws and dusty legislation from the late 19th century. Some of these new policies are vague or fail to address health complications such as miscarriage and ectopic pregnancy. They propose varying consequences for abortion providers and different mechanisms for enforcement.

    In November, the AUL released its American Life Initiative and its model legislation, the Ready for Life Act, which bans abortion after conception and includes a life-of-the-mother exception, as well as clarifications regarding miscarriage and ectopic pregnancy. But it came five months after the Dobbs v. Jackson Women’s Health Organization decision overturning Roe. That groups were drafting these guidelines “months after Dobbs and not experiencing any uniformity in state legislatures is a sign of how decentralized and swift-moving all of this has been,” Williams said.

    Clarke Forsythe, the senior counsel for AUL, defends his organization’s strategy: “We needed time to analyze Dobbs and its impact and implications and needed time to put the package together,” he told me. “It’s a long-term initiative and a long-term vision. There was no need to get it out before the election.”

    Abortion opponents insist that a state-level free-for-all could turn out to be helpful for the movement. With more people involved and working toward different initiatives, the argument goes, activists might come up with innovative ideas and policy proposals. Democracy, by nature, is messy. “It’s good for the country and good for our politics to decentralize the issue,” Forsythe told me. “The Court sent it back to the local level, where public policy can be better aligned with public opinion, where the people responsible for it are responsive to people at the local level.” Decentralization is the movement’s strength, Lila Rose, the president of the national anti-abortion group Live Action, told me. “It requires a diverse and multifaceted approach. It’s not strategic conflict so much as strategic differences.”

    This particular moment gives anti-abortion activists a chance to think creatively and to forge new alliances, some in the movement argue. Now that Roe is gone, do they need to keep up their ties with the GOP? “I would like to see the movement disentangle itself from particular political parties,” Erika Bachiochi, an anti-abortion writer and a fellow at the Ethics and Public Policy Center, told me. Maybe, she added, there’s room for a return of the “old pro-life Democrat.”

    But an unintended consequence of overturning Roe could be that the movement has inadvertently pushed its highest objective—ending legal abortion—further out of reach. “On the one hand, when there’s a free-for-all, ideas that may never have been given the time of day can emerge and work,” Ziegler said. “On the other, you can have bills that are damaging nationally get passed.” Texas’s S.B. 8—the Texas Heartbeat Act—frustrated some movement leaders because it empowered individual citizens to sue, which meant that those individuals would control the narrative, Ziegler said. Others worry about the vocal “abortion abolition” groups, which have been calling for women who obtain abortions to be punished.

    These days, Ziegler says, “there’s no single voice in the movement to say, ‘No, that’s not what we stand for.’” A few extremists, in other words, could damage the movement’s reputation—and interfere with its ultimate goal.

    Before Dobbs, anti-abortion advocates seemed confident that once a handful of states banned abortion, many more would follow—that they could build a “culture of life” in America that would put the country on a righteous path. In some ways, the opposite has occurred. As a few states put limits on abortion rights, others, such as Vermont, California, and Michigan, have reacted by enshrining those rights into state law. Meanwhile, voters in red states including Kansas, Montana, and Kentucky rejected attempts to restrict abortion. Former President Donald Trump—the man whose nomination of three Supreme Court justices led directly to the overturning of Roe—has gone so far as to blame Republicans’ disappointing midterm performance on the anti-abortion movement. (In response, Rose called his comments “sniveling cowardice.”)

    Nationally, the movement’s relationship with the Republican Party is troubled. Last fall, when Senator Lindsey Graham proposed legislation restricting abortions after 15 weeks, only a handful of his Republican colleagues were publicly supportive. “Most of the members of my conference prefer that this be dealt with at the state level,” Minority Leader Mitch McConnell told reporters at the time.

    Even in the new Congress, where Republicans have a House majority, one of the first pieces of legislation passed in the lower chamber was the so-called Born Alive bill, which would require health-care providers to treat babies in the vanishingly rare cases of failed abortions. Here was a chance for Republicans to pass a bill restricting abortion after 15 weeks or even six, in a show of support to the movement that they purport to champion. But they didn’t. Republicans in Congress are “afraid to do anything on this issue that’s meaningful” for fear of the political consequences, Ziegler says.

    Anti-abortion leaders like Rose believe that they’re being unfairly blamed for these recent Republican losses and missed opportunities. They argue that in the midterms the GOP chose candidates who were insufficiently anti-abortion, or simply problematic, such as Mehmet Oz and Herschel Walker. But there was also a communication issue, they say. Candidates weren’t outspoken enough about abortion; they should have talked more about the Democrats’ support for abortion at late gestational ages, and their plan to codify abortion rights into law. “That’s where the real problem was” in the midterms, Marilyn Musgrave, the vice president of government affairs for Susan B. Anthony Pro-Life America, told me. “Republicans weren’t pointing out the extremism on the other side.”

    It’s true that some Republicans campaigned successfully on abortion restrictions last year, including GOP Governors Ron DeSantis of Florida, Kay Ivey of Alabama, Brian Kemp of Georgia, and Greg Abbott of Texas, each of whom won reelection by a substantial margin. Still, the recent state referenda and post-Dobbs polling suggest that the anti-abortion movement is too optimistic about the level of support for their goals.

    “We’ve clearly lost the narrative,” Charlie Camosy, an ethics professor at Creighton University School of Medicine and a columnist for the Religion News Service, told me. Activists like Camosy hope that the movement’s new emphasis will be a grassroots effort to educate Americans and persuade them to oppose abortion. Camosy isn’t attending the March for Life tomorrow; instead, he’s giving a speech at a Catholic seminar in Freehold, New Jersey, where he lives. “Something is wrong in our ability to communicate what’s at stake,” he said of the broader movement. “Focusing on the national level distracts from getting Michigan or Montana or Kentucky or Kansas right.”

    But eventually, Camosy’s movement will have to face the reality of abortion in America: Some states just aren’t going to budge. “Fewer than 50 percent of states are likely to meaningfully curtail abortion,” Williams estimates. Even if the movement gains ground in some states, “that’s likely only to harden the resistance in more strongly pro-choice states.” Which means that, rather than a growing national consensus on abortion, Americans probably can expect more polarization—a cultural standoff.

    Tomorrow’s March for Life will be the first time activists have held a major national gathering since Roe was overturned in June. But it will probably be a much smaller event than before. Some activists have wondered whether it should happen at all. More states and cities will be hosting their own rallies, because that’s where the next round of work needs to be done. And many people will be at those local marches instead—to start, or maybe to double down, on their difficult project of creating a “culture of life.”

    Elaine Godfrey

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  • Twitter layoffs continue under Elon Musk | CNN Business

    Twitter layoffs continue under Elon Musk | CNN Business



    CNN
     — 

    Additional Twitter employees were terminated Thursday as part of ongoing, rolling layoffs under new owner Elon Musk, including from the public policy and media and entertainment teams, according to tweets from affected employees.

    As part of Thursday’s layoffs, the members of Twitter’s public policy team who had remained following last month’s mass layoffs were again cut down by about half to around 15 employees, a former Twitter employee with knowledge of the layoffs told CNN.

    Among the public policy team’s responsibilities are working with outside advisory groups such as the Twitter Trust and Safety Council, which the company disbanded earlier this month. It also manages human rights programs to protect vulnerable users like activists, engages in transparency efforts, works with government agencies and helps to ensure compliance with global regulations. The public policy team had more than 60 employees prior to Musk’s takeover, the former employee said.

    Thursday’s exits come after Musk laid off about half of Twitter’s workforce last month shortly after his takeover, and later pushed out additional employees, including through an ultimatum requiring them to work “hardcore” or exit the company. Musk’s team — seeking to cut costs at the struggling company that the billionaire purchased for $44 billion — has continued to lay off hundreds of additional Twitter staff since then, including top engineering and legal talent, according to the former employee and multiple recent reports.

    More than 100 former Twitter employees have filed demands for arbitration or are participating in proposed class action lawsuits related to the layoffs.

    The latest round of layoffs could further affect Twitter’s ability to protect key users and comply with regulations amid heightened scrutiny of the company following Musk’s takeover.

    Thierry Breton, a top EU official, warned Musk in a meeting last month that the social media platform must take significant steps to comply with EU content moderation laws, and that European officials will be monitoring closely for compliance. Musk has agreed to let EU officials “stress test” the social media platform for compliance with the Digital Services Act, Europe’s new platform regulation, early next year.

    Twitter also continues to struggle with the exit of many of its advertisers, which provide most of the company’s revenue. As of December 17, 72 of Twitter’s top 100 advertisers had paused ad campaigns on the platform, according to a review by digital marketing intelligence firm Pathmatics, which it provided to CNN.

    In the meantime, Musk may be considering finding someone else to head the social platform, after Twitter users voted over the weekend for him to step down as CEO. Musk tweeted this week that he would leave the top role “as soon as I find someone foolish enough to take the job!”

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  • Supreme Court hears Texas’ challenge to Biden immigration and deportation policies | CNN Politics

    Supreme Court hears Texas’ challenge to Biden immigration and deportation policies | CNN Politics



    CNN
     — 

    The Supreme Court on Tuesday will consider the Biden administration’s discretion on removing non-citizens in a challenge brought by two Republican state attorneys general who say the Department of Homeland Security is skirting federal immigration law.

    The case, brought by Texas and Louisiana, is the latest salvo from conservative states who have all but declared war on the Biden administration on immigration and have gone as far as busing undocumented immigrants to Democrat-led states in an effort to raise alarm about the issue.

    At the heart of the dispute is a September 2021 memo from Homeland Security Secretary Alejandro Mayorkas that laid out priorities for the arrest, detention and deportation of certain non-citizens, reversing efforts by former President Donald Trump to increase deportations.

    In court papers, Solicitor General Elizabeth Prelogar stressed that Congress has never provided the funds to detain everyone, prompting administrations to consider how to prioritize limited funds.

    “Especially given perennial constraints on detention capacity, the Executive retains authority to focus its limited resources on those non-citizens who are higher priorities for apprehension,” she wrote.

    The guidelines call for an assessment of the “totality of the facts and circumstances” instead of the development of a bright-line rule. The government lists aggravating factors weighing in favor of an enforcement action including the gravity of the offense and the use of a firearm, but it also lists mitigating factors that include the age of the immigrant.

    Lawyers for Texas and Louisiana argued that the government lacked the authority to issue the memo because it conflicts with federal law. They point to immigration law that holds that some immigrants “shall” be taken into custody or removed.

    “When Congress required the Executive to act, the Executive lacks the authority to disregard that instruction,” Texas Attorney General Ken Paxton argued in court papers. He also charged that the guidelines violate the Administrative Procedure Act, a federal law that governs how an agency can issue regulations.

    A district court judge blocked the guidelines nationwide. “Using the words ‘discretion’ and ‘prioritization’ the Executive Branch claims the authority to suspend statutory mandates,” ruled Judge Drew Tipton, a Trump appointee on the US District Court for the Southern District of Texas. “The law does not sanction this approach.”

    A federal appeals court declined to issue a stay of the decision, prompting the Biden administration to ask the Supreme Court for emergency relief last July. A 5-4 court ruled against the administration, allowing the lower court’s decision to remain in effect while the legal challenge plays out.

    Conservative Justice Amy Coney Barrett joined her three liberal colleagues in dissent without providing any explanation for her vote.

    In his memo, Mayorkas stated that there are approximately 11 million undocumented or otherwise removable non-citizens in the country and that the United States does not have the ability to apprehend and seek to remove all of them. As such, the Department of Homeland Security sought to prioritize those that pose a threat to national security, public safety and border security.

    Prelogar noted that the lower court holding against the government “runs counter to longstanding practice spanning multiple administrations” and emphasized that the guidelines are not binding orders compelling action, but instead, are an attempt to utilize available resources while leaving ultimate discretion to the judgment of individual immigration officials.

    “The guidelines simply tell federal officials how to enforce federal law in a field that the Constitution commits to the federal government,” Prelogar wrote.

    As a threshold matter, she urged the justices to dismiss the challenge, arguing that the states don’t have the legal right – or standing – to bring the challenge because they can’t show the necessary direct injury. Prelogar said if the lawsuit were allowed to go forward, any state could sue the federal government about “virtually any policy.”

    In a separate dispute, Arizona, Montana and Ohio also sued the Biden administration. A district court judge issued a nationwide injunction blocking the guidelines, but the 6th US Circuit Court of Appeals put that decision on hold.

    “Federal law gives the National Government considerable authority over immigration policy,” the court held. It also expressed skepticism about whether the guidance directly injured the states.

    Paxton argued to the Supreme Court that the states have the legal right to bring the lawsuit because they bear costs related to law enforcement activities as well as health care and education costs of the non-citizens.

    Critics also say that Texas is guilty of “judge shopping” the case at hand by filing it where it had a 100% chance of drawing a Trump-appointed district judge who has previously issued nationwide injunctions concerning other immigration policies.

    “So far, Texas has taken the lead in 29 different lawsuits against the Biden administration, on immigration,” said CNN analyst Steve Vladeck who is a professor at the University of Texas School of Law. In a friend of the court brief filed opposing Texas, Vladeck noted that none of those cases had been filed where the Texas government is located in Austin.

    “This case is the latest battlefield in what has become an all-out war by red state attorneys general against virtually every Biden related policy,” Vladeck said.

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  • ‘It’s an especially bad time’: Tech layoffs are hitting ethics and safety teams | CNN Business

    ‘It’s an especially bad time’: Tech layoffs are hitting ethics and safety teams | CNN Business


    New York
    CNN
     — 

    In the wake of the 2016 presidential election, as online platforms began facing greater scrutiny for their impacts on users, elections and society, many tech firms started investing in safeguards.

    Big Tech companies brought on employees focused on election safety, misinformation and online extremism. Some also formed ethical AI teams and invested in oversight groups. These teams helped guide new safety features and policies. But over the past few months, large tech companies have slashed tens of thousands of jobs, and some of those same teams are seeing staff reductions.

    Twitter eliminated teams focused on security, public policy and human rights issues when Elon Musk took over last year. More recently, Twitch, a livestreaming platform owned by Amazon, laid off some employees focused on responsible AI and other trust and safety work, according to former employees and public social media posts. Microsoft cut a key team focused on ethical AI product development. And Facebook-parent Meta suggested that it might cut staff working in non-technical roles as part of its latest round of layoffs.

    Meta, according to CEO Mark Zuckerberg, hired “many leading experts in areas outside engineering.” Now, he said, the company will aim to return “to a more optimal ratio of engineers to other roles,” as part of cuts set to take place in the coming months.

    The wave of cuts has raised questions among some inside and outside the industry about Silicon Valley’s commitment to providing extensive guardrails and user protections at a time when content moderation and misinformation remain challenging problems to solve. Some point to Musk’s draconian cuts at Twitter as a pivot point for the industry.

    “Twitter making the first move provided cover for them,” said Katie Paul, director of the online safety research group the Tech Transparency Project. (Twitter, which also cut much of its public relations team, did not respond to a request for comment.)

    To complicate matters, these cuts come as tech giants are rapidly rolling out transformative new technologies like artificial intelligence and virtual reality — both of which have sparked concerns about their potential impacts on users.

    “They’re in a super, super tight race to the top for AI and I think they probably don’t want teams slowing them down,” said Jevin West, associate professor in the Information School at the University of Washington. But “it’s an especially bad time to be getting rid of these teams when we’re on the cusp of some pretty transformative, kind of scary technologies.”

    “If you had the ability to go back and place these teams at the advent of social media, we’d probably be a little bit better off,” West said. “We’re at a similar moment right now with generative AI and these chatbots.”

    When Musk laid off thousands of Twitter employees following his takeover last fall, it included staffers focused on everything from security and site reliability to public policy and human rights issues. Since then, former employees, including ex-head of site integrity Yoel Roth — not to mention users and outside experts — have expressed concerns that Twitter’s cuts could undermine its ability to handle content moderation.

    Months after Musk’s initial moves, some former employees at Twitch, another popular social platform, are now worried about the impacts recent layoffs there could have on its ability to combat hate speech and harassment and to address emerging concerns from AI.

    One former Twitch employee affected by the layoffs and who previously worked on safety issues said the company had recently boosted its outsourcing capacity for addressing reports of violative content.

    “With that outsourcing, I feel like they had this comfort level that they could cut some of the trust and safety team, but Twitch is very unique,” the former employee said. “It is truly live streaming, there is no post-production on uploads, so there is a ton of community engagement that needs to happen in real time.”

    Such outsourced teams, as well as automated technology that helps platforms enforce their rules, also aren’t as useful for proactive thinking about what a company’s safety policies should be.

    “You’re never going to stop having to be reactive to things, but we had started to really plan, move away from the reactive and really be much more proactive, and changing our policies out, making sure that they read better to our community,” the employee told CNN, citing efforts like the launch of Twitch’s online safety center and its Safety Advisory Council.

    Another former Twitch employee, who like the first spoke on condition of anonymity for fear of putting their severance at risk, told CNN that cutting back on responsible AI work, despite the fact that it wasn’t a direct revenue driver, could be bad for business in the long run.

    “Problems are going to come up, especially now that AI is becoming part of the mainstream conversation,” they said. “Safety, security and ethical issues are going to become more prevalent, so this is actually high time that companies should invest.”

    Twitch declined to comment for this story beyond its blog post announcing layoffs. In that post, Twitch noted that users rely on the company to “give you the tools you need to build your communities, stream your passions safely, and make money doing what you love” and that “we take this responsibility incredibly seriously.”

    Microsoft also raised some alarms earlier this month when it reportedly cut a key team focused on ethical AI product development as part of its mass layoffs. Former employees of the Microsoft team told The Verge that the Ethics and Society AI team was responsible for helping to translate the company’s responsible AI principles for employees developing products.

    In a statement to CNN, Microsoft said the team “played a key role” in developing its responsible AI policies and practices, adding that its efforts have been ongoing since 2017. The company stressed that even with the cuts, “we have hundreds of people working on these issues across the company, including net new, dedicated responsible AI teams that have since been established and grown significantly during this time.”

    Meta, maybe more than any other company, embodied the post-2016 shift toward greater safety measures and more thoughtful policies. It invested heavily in content moderation, public policy and an oversight board to weigh in on tricky content issues to address rising concerns about its platform.

    But Zuckerberg’s recent announcement that Meta will undergo a second round of layoffs is raising questions about the fate of some of that work. Zuckerberg hinted that non-technical roles would take a hit and said non-engineering experts help “build better products, but with many new teams it takes intentional focus to make sure our company remains primarily technologists.”

    Many of the cuts have yet to take place, meaning their impact, if any, may not be felt for months. And Zuckerberg said in his blog post announcing the layoffs that Meta “will make sure we continue to meet all our critical and legal obligations as we find ways to operate more efficiently.”

    Still, “if it’s claiming that they’re going to focus on technology, it would be great if they would be more transparent about what teams they are letting go of,” Paul said. “I suspect that there’s a lack of transparency, because it’s teams that deal with safety and security.”

    Meta declined to comment for this story or answer questions about the details of its cuts beyond pointing CNN to Zuckerberg’s blog post.

    Paul said Meta’s emphasis on technology won’t necessarily solve its ongoing issues. Research from the Tech Transparency Project last year found that Facebook’s technology created dozens of pages for terrorist groups like ISIS and Al Qaeda. According to the organization’s report, when a user listed a terrorist group on their profile or “checked in” to a terrorist group, a page for the group was automatically generated, although Facebook says it bans content from designated terrorist groups.

    “The technology that’s supposed to be removing this content is actually creating it,” Paul said.

    At the time the Tech Transparency Project report was published in September, Meta said in a comment that, “When these kinds of shell pages are auto-generated there is no owner or admin, and limited activity. As we said at the end of last year, we addressed an issue that auto-generated shell pages and we’re continuing to review.”

    In some cases, tech firms may feel emboldened to rethink investments in these teams by a lack of new laws. In the United States, lawmakers have imposed few new regulations, despite what West described as “a lot of political theater” in repeatedly calling out companies’ safety failures.

    Tech leaders may also be grappling with the fact that even as they built up their trust and safety teams in recent years, their reputation problems haven’t really abated.

    “All they keep getting is criticized,” said Katie Harbath, former director of public policy at Facebook who now runs tech consulting firm Anchor Change. “I’m not saying they should get a pat on the back … but there comes a point in time where I think Mark [Zuckerberg] and other CEOs are like, is this worth the investment?”

    While tech companies must balance their growth with the current economic conditions, Harbath said, “sometimes technologists think that they know the right things to do, they want to disrupt things, and aren’t always as open to hearing from outside voices who aren’t technologists.”

    “You need that right balance to make sure you’re not stifling innovation, but making sure that you’re aware of the implications of what it is that you’re building,” she said. “We won’t know until we see how things continue to operate moving forward, but my hope is that they at least continue to think about that.”

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  • What to know about Florida’s challenge to the immigration parole policy | CNN Politics

    What to know about Florida’s challenge to the immigration parole policy | CNN Politics



    CNN
     — 

    A federal judge late Thursday night temporarily blocked one of the Biden’s administration’s key tools to try to manage the number of migrants in US Customs and Border Protection custody.

    The ruling came just before Title 42 expired, and administration officials say it will make their job more difficult amid the expected influx of migrants at the US-Mexico border. An appeal is expected.

    Here’s what to know:

    The plan, released Wednesday, allowed the release of migrants from CBP custody without court dates, or, in some cases, releasing them with conditions.

    As number of migrants increases at the border, the Department of Homeland Security said its plan would help release the immense strain on already overcrowded border facilities. As of Wednesday, there were more than 28,000 migrants in Border Patrol custody, stretching capacity.

    The administration previously released migrants without court dates when facing a surge of migrants after they’re screened and vetted by authorities. The plan would have allowed DHS to release migrants on “parole” on a case-by-case basis and require them to check in with Immigration and Customs Enforcement.

    Florida sued to halt the policy, and District Judge T. Kent Wetherell, agreed to block the plan for two weeks.

    Wetherell, an appointee of former President Donald Trump, said the administration’s explanation for why its policy was only unveiled on Wednesday, when the end of Title 42 was anticipated for months, was lacking. He also said the Biden administration simply failed to prepare.

    “Putting aside the fact that even President Biden recently acknowledged that the border has been in chaos for ‘a number of years,’ Defendants’ doomsday rhetoric rings hollow because … this problem is largely one of Defendants’ own making through the adoption and implementation of policies that have encouraged the so-called ‘irregular migration’ that has become fairly regular over the past 2 years.”

    Wetherell added: “Moreover, the Court fails to see a material difference between what CBP will be doing under the challenged policy and what it claims that it would have to do if the policy was enjoined, because in both instances, aliens are being released into the country on an expedited basis without being placed in removal proceedings and with little to no vetting and no monitoring.”

    Homeland Security Secretary Alejandro Mayorkas, speaking on “CNN This Morning,” called the ruling “very harmful” and said the administration is considering its options.

    “The practice that the court has prevented us from using (is) a practice that prior administrations have used to relieve overcrowding,” Mayorkas said. “What we do is we process screen and vet individuals and if we do not hold them, we release them so that they can go into immigration enforcement proceedings, make whatever claim for relief, they might and if they don’t succeed, be removed.”

    Assistant secretary for border and immigration policy Blas Nuñez-Neto said the ruling “will result in unsafe overcrowding at CBP facilities and undercut our ability to efficiently process and remove migrants, which will risk creating dangerous conditions for Border Patrol agents as well as non-citizens in our custody.”

    Wetherell’s ruling will block the policy for two weeks. A preliminary injunction hearing has been scheduled for May 19.

    The Justice Department has requested a stay on the court ruling, according to a Friday filing. The filing addresses two separate rulings in the case, both of which have to do with the release of migrants. If the request is not granted, the Justice Department said it intends to seek emergency relief from the Eleventh Circuit by Monday afternoon.

    This story has been updated with additional information.

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