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  • GM settles strike at Canadian plants | CNN Business

    GM settles strike at Canadian plants | CNN Business

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    New York
    CNN
     — 

    A strike at General Motors’ Canadian plants is over less than a day after it started, according Unifor, the union that represents more than 4,000 autoworkers at the company.

    The strike had begun 11:59 pm Monday when Unifor said GM had refused to agree to a deal similar to the one the union previously reached with Ford. That kind of deal is known as a pattern agreement.

    The union said the company quickly gave in to union demands once the strike started.

    “When faced with the shutdown of these key facilities General Motors had no choice but to get serious at the table and agree to the pattern,” said Unifor National President Lana Payne. “The solidarity of our members has led to a comprehensive tentative agreement that follows the pattern set at Ford to the letter.”

    The union said strike actions are on hold to allow the membership to vote on the tentative agreement. The strike could resume if the rank-and-file members fail to ratify the deal.

    But it’s uncertain whether it will win approval of membership. Only 54% of Unifor members at Ford voted in favor of the deal.

    The Unifor strike occurred while GM as well as rivals Ford and Stellantis were already dealing with strikes by the United Auto Workers union. That strike had started September 15 against targeted facilities of each company. More than 25,000 UAW members are now on strike at the three companies, with nearly 10,000 of those at GM.

    “This record agreement, subject to member ratification, recognizes the many contributions of our represented team members with significant increases in wages, benefits and job security while building on GM’s historic investments in Canadian manufacturing,” said GM’s statement.

    Details of the Unifor deal were not immediately available. But the deal with Ford included a wage increase of 10% in the first year of the agreement, followed by a 2% and 3% increase over the next two years of the contract. It also restored the cost-of-living adjustments (COLA) to protect workers from rising prices.

    The Ford agreement also returned to a pension plan — rather than just 401(k)-style retirement accounts — for Unifor members hired at Ford in recent years. And it converted temporary staff who work full-time shifts into permanent employees.

    Autoworkers in both Canada and the United States used to all have COLA clauses in their contracts as well as traditional pension plans that pay retirees a set amount every month as long as they live. But the automakers got unions on both sides of the border to give up the COLA for all members and traditional pensions for new hires when the companies were in financial distress in 2007 through 2009.

    Restoring those concessions have been a major negotiation demand of both Unifor and the UAW.

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  • Autoworkers strike deadline nears as negotiators rush to avoid historic walkout | CNN Business

    Autoworkers strike deadline nears as negotiators rush to avoid historic walkout | CNN Business

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    Detroit
    CNN
     — 

    With just hours to go before labor contracts expire at America’s three unionized automakers, thousands of autoworkers could walk off the job.

    Those limited, targeted strikes could be enough to grind production to a halt at General Motors, Ford and Stellantis, which builds vehicles under the Jeep, Ram, Dodge and Chrysler brands for North America.

    But the uncertainty and confusion underscore the high stakes, with a possible historic strike at all three major automakers, disruptions to the local and national economies, and, perhaps more than anything, a hint at the future of manufacturing jobs in America.

    The union and the automakers continued to negotiate down to the wire on Thursday. GM made a new offer on Thursday afternoon, including a 20% raise, matching Ford’s offer.

    “We don’t want there to be a strike. We’re ready to work until the deadline,” Ford CEO Jim Farley told CNN. “We’d like to make history by making a historic deal, not having a historic strike,” he said.

    And President Joe Biden himself spoke to leaders of the union and the automakers, as a strike could be politically costly for him, as well.

    UAW President Shawn Fain on Wednesday evening announced plans for those targeted strikes at any company that fails to reach a labor deal with the union before contracts expire at 11:59 pm Thursday. Fain suggested the strategy, including the possibility of ramping up strikes as negotiating continues, would give the UAW more leverage. “We have the power to keep escalating and keep taking plants out,” he said.

    But Farley said on CNN Thursday that striking plants that make critical parts could affect workers at downstream assembly plants.

    “We can’t make a vehicle without an engine or transmission or stamping. So those people will, you know, basically be furloughed,” Farley said.

    Slowing or stopping the production of a few engine or transmission plants at each company could be as effective at stopping operations as a full strike at all plants, according to industry experts.

    One engine or transmission location per company might be enough to shut down nearly three-quarters of the US assembly plants, said Jeff Schuster, global head of automotive for GlobalData, an industry consultant.

    “Two plants per company, you can pretty much idle North America,” he said.

    Halting the companies’ assembly lines would likely happen in less than a week that way, Schuster said.

    One advantage for the union of a targeted strike is the potential to save resources and extend a possible walkout. Striking union members are eligible for $500 a week from the union’s strike fund.

    If all 145,000 UAW members among the three automakers were to strike at the same time, it could cost the fund more than $70 million a week, draining the $825 million fund.

    If the companies shut down operations and lay off members who are not technically on strike, those workers could be eligible to receive state unemployment benefits rather than strike benefits, which could preserve the union’s resources.

    Strikers are not eligible for unemployment benefits, but workers on temporary layoff can receive the benefits, which differ by state but would be less than the union’s $500 strike pay. There also are legal questions in different states about qualifying for unemployment.

    An official with Ford told reporters Thursday that under state law, workers in Michigan and Ohio were not eligible to receive unemployment benefits if they were laid off due to lack of parts at their plant caused by a strike. There are some other states, such as Kentucky and Tennessee, where they would be able to receive unemployment benefits, according to the officials.

    But they said none of the Ford UAW members would be eligible for so-called “sub-pay,” which they typically receive during temporary layoffs. Sub pay is far more lucrative, covering most of the gap between unemployment benefits, typically less than $300 a week, and normal company pay, which can be close to $1,300 a week.

    GM CEO Mary Barra sent a letter to employees Thursday saying the company’s latest offer now includes a 20% raise, with an immediate 10% pay hike. The lower paid temporary employees would get $20 an hour, which represents a 20% raise from the current $16.67 an hour they receive. She called the offer “historic.”

    “We are working with urgency and have proposed yet another increasingly strong offer with the goal of reaching an agreement tonight. Remember: we had a strike in 2019 and nobody won,” she said in the letter.

    Farley told CNN the offer from Ford of a 20% raise over the life of the contract is the most lucrative offer the company has made to the union in the 80 years it has been there. But he said meeting the union’s demands of close to a 40% raise, along with a four-day work week and other benefit improvements, would have been unaffordable.

    Farley blamed the union for the lack of progress in negotiations. But the union has blamed the companies for waiting until the end of August or early September to make their first counteroffers.

    The union came up with the 40% raise request based on the increase in the pay of CEOs at the three automakers over the last four years. Ford CEO pay rose 21%, from $17 million for Farley’s predecessor Jim Hackett in 2019, to $21 million for Farley last year. (Farley is the lowest compensated of the three CEOs.)

    Asked why the union workers shouldn’t get the same increases, Farley responded, “We’re really open to huge increases.” As to the 40% increases for CEOs, Farley responded, “I wasn’t CEO four years ago, but we have put on the table huge increases, double digit increases.”

    Ford has not had a strike since 1978; it has more UAW workers than the other two automakers.

    President Joe Biden spoke with Fain and leaders of the major auto companies “to discuss the status of ongoing negotiations,” the White House said Thursday.

    The White House declined to say Wednesday that Biden would support UAW workers if they chose to strike.

    “I’m gonna leave it at, [Biden] believes the auto workers deserve a contract that sustains middle class jobs and wants the parties to stay at the table, to work round the clock to get a win-win agreement,” Council of Economic Advisors Chair Jared Bernstein told reporters during Wednesday’s White House press briefing.

    Biden became directly involved in 11th hour negotiations a year ago to stop engineers and conductors at the nation’s major freight railroad from going on strike and was credited by both sides with a deal being reached at that time. But Biden and Congress had power under a different labor law to keep workers on the job by imposing a contract, a power he used later in the year when rank-and-file rail workers rejected the deal he brokered and again threatened to strike

    The autoworkers fall under a different labor law, one that leaves Biden with no power to stop a walkout. And he has limited influence with the UAW, which has been critical of his push to have the industry convert to electric vehicles, a move that could cost members jobs in the long run.

    In a statement midday Thursday, GM said it remains in “good faith negotiations” with the UAW but cautioned that a strike would be disruptive to its business.

    “Any disruption would negatively impact our employees and customers, and would have an immediate ripple effect across our communities,” a company spokesperson said.

    One sticking point in negotiations is that wages are only part of the gap between the two sides. In some ways it might be the least difficult problem to solve, said Patrick Anderson, CEO of Anderson Economic Group, a Michigan research firm.

    “The difference between the automakers and the unions on wages is a gap that could be closed,” said Anderson. “The differences involving non-wage demands are a gulf, not a gap.”

    The union is attempting to reverse deep concessions that go back as far as 2007. At the time, years of losses had left Ford nearly out of cash, and GM and Chrysler were on their way to bankruptcy and federal bailouts.

    The number one concession the union wants to end is a lower tier of wages and benefits for workers hired since 2007. While top pay for those newer hires, who today make up a majority of membership, is the same as the $32.32 paid to more senior members, it takes many more years to reach that level.

    The union also wants to restore traditional pension plans for those hired since 2007, as the more senior workers now receive, as well as the same retiree health care coverage. And to protect members from rising prices, it wants a return of the cost-of-living adjustments to pay that all employees lost in 2007.

    Even Fain calls those demands “ambitious,” but he said they’re driven by record or near record profits at the automakers.

    Pandemic supply chain disruptions and shortages of some parts, particularly computer chips, have led to record car prices. The average purchase price of a new car in August was nearly $48,000, according to Edmunds. That’s up 30% from August of 2019.

    Automakers have used their limited supply of parts to build vehicles loaded with options to maximize profits. That’s produced a strong bottom line. General Motors reported record profits in 2022, and Ford posted near-record profits as well. Stellantis, a European-based automaker formed in 2021 by the merger of Fiat Chrysler and PSA Group, had 2022 profits up 26% compared to its first year of combined operations.

    A strike that halts production nationwide could also be costly for the automakers at a time of strong demand by car buyers and strong competition from nonunion automakers such as Tesla and foreign brands. GM said it lost $2.9 billion during its 2019 strike.

    While the automakers have done their best to build up inventory at dealerships, car buyers could have trouble finding some of the models they want and could have to wait longer for their choice of colors and options. And limited supplies could put upward pressure on some vehicle prices.

    – CNN’s DJ Judd contributed to this report

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  • More remote workers are willing to move in order to find affordable housing | CNN Business

    More remote workers are willing to move in order to find affordable housing | CNN Business

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    Washington, DC
    CNN
     — 

    Housing is less affordable than it has been in about four decades. But buying or renting a home might be even less affordable now if it weren’t for the continuing impact of remote and hybrid workers that resulted from the pandemic, according to a recent study by Fannie Mae.

    The study, which was an analysis of Fannie Mae’s monthly National Housing Survey, with questions asked among more than 3,000 mortgage holders, owners, and renters between January and March this year, looked at how remote and hybrid work has changed over the past few years and its impact on housing.

    More people are willing to move to less expensive areas further away from offices in city centers than a few years ago, according to the report. Continuing remote and hybrid work, at levels remarkably unchanged from two years ago, is enabling people to move toward housing affordability, the study found.

    The report also revealed that “affordability” is the most important factor in finding a place to live, both for renters and homeowners.

    At the beginning of the year, 22% of remote and hybrid workers said they would be willing to relocate to a different region or increase their commute. Only 14% such workers were willing to do so in the third quarter of 2021, which is used as a comparison throughout the study and was when many workplaces attempted a “return to work” until the Omicron variant of Covid-19 pushed many employers’ plans back that winter.

    Workers who are able to break their ties to living in an area because of its proximity to work are able to spread out, reducing the competition for a historically low number of homes for sale that could push prices even higher.

    The research showed that among remote workers, all age and income groups have grown more willing to relocate or live farther away from their workplace since 2021. But younger workers — those between 18 and 34 — are significantly more willing than those older than them to live or commute a further distance from their work, with the share willing to do so jumping from 18% in 2021, to 30% in 2023.

    “We believe this greater willingness to live farther from the … workplace may be an indication that some workers are feeling more secure about their remote work situation … or their ability to find another job if their current employer were to change its policies,” wrote the researchers, in a summary.

    This is good news for remote workers during a time of crushingly low levels of home affordability.

    Remote and hybrid work may be here to stay. Or, it’s here long enough for people to buy or rent a new home because of it, the researchers found.

    Despite the demands by leaders of some prominent companies that workers need to head into the office or head out the door, the share of fully remote and hybrid workers has remained surprisingly constant in the post-pandemic era, according to the study.

    In the first part of the year, 35% of respondents worked fully remote or worked a hybrid mix of some time at a workplace and some time at home. That was only slightly down from 36% in 2021.

    While the share of workers going to a work site or office every day was unchanged at 49% in both 2021 and in 2023, the share of people working fully remote ticked up to 14% this year from 13% in 2021.

    Homeowners continue to be slightly more likely to work from home than renters. And those with more education and higher incomes are also more likely to have a work-from-home situation, which is consistent with 2021, the study found.

    Only 30% of lower-income people, earning 80% of the area median income, could work remotely or hybrid in 2021, and that dropped to 27% by this year. Meanwhile 42% of upper-income people, those making 120% of the area median income, were able to work from home in 2021 and that number did not change in 2023.

    Lower-income people — who are in most need of access to lower-cost housing, found further away from a city’s core — are also those least likely to work remotely, according to the survey.

    With housing affordability taking a hit over the past few years as rents rose, home prices stayed elevated and mortgage rates soared to a 22-year high, it is not surprising that “affordability” was the top factor for people when picking a new home, at 36%. This was a big jump from 2014, the last time the question was asked, when the top consideration was “neighborhood” at 49%.

    Homeowners and renters both showed growth in prioritizing “affordability,” but the increase was greatest among renters, shooting up from 21% in 2014 to 46% in 2023.

    “The change in preference for renters is truly remarkable, since not only did it more than double, but it represented a complete reversal of the relative importance of neighborhood cited by consumers as the top consideration in 2014,” wrote the researchers.

    In addition, despite the talk about moving for more space, “home size” as a factor for picking a next home was unchanged and still outweighed by “affordability.”

    “The striking shift toward affordability as the top consideration among overall survey respondents for their next move substantiates the need of households to find ways to manage around the significant rise in mortgage rates, home prices, and rents of the past few years,” the researchers wrote.

    And this is impacting where people look for a home and what they prioritize when they are searching.

    “Home affordability may also be a reason why we saw an increase in remote workers’ willingness to relocate or live farther away from their workplace, particularly given that, historically, a shorter commute to denser job markets was considered a premium amenity,” the researchers wrote.

    The suburbs are increasingly where people want to be, the report found, which is part of an ongoing trend since 2010. And that share has grown between 2021 and 2023.

    The researchers say the change to the housing market brought about by remote workers holds broader implications for the link between housing and the labor market.

    The growing share of remote-working renters and homeowners willing to live farther from their work location gives employers access to a wider labor market, which could be useful if a downturn in economic activity led to greater rates of job loss.

    “Having access to a larger labor market may also reduce the adverse effect on local home prices when a major employer or industry contracts,” the researchers wrote.

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  • UBS will cut 3,000 jobs in Switzerland as it absorbs Credit Suisse | CNN Business

    UBS will cut 3,000 jobs in Switzerland as it absorbs Credit Suisse | CNN Business

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    London
    CNN
     — 

    UBS expects to shed around 3,000 jobs in Switzerland as it tries to save $10 billion from a sweeping overhaul of the global banking giant created by its emergency rescue of Credit Suisse earlier this year.

    The job cuts amount to around 8% of staff employed by the combined bank’s Swiss operations and may spark new controversy in the country, where the deal has already proved unpopular with the public and some politicians.

    “The Swiss Bank Employees Association demands that the 37,000 employees of the two institutions in Switzerland are treated fairly and equally in the integration process,” the Swiss banking union said in a statement.

    On a call with analysts Thursday, UBS CEO Sergio Ermotti said: “Every lost job is painful for us. Unfortunately, in this situation, cuts were unavoidable.”

    Ermotti said the job cuts would be spread “over a couple of years” and that the bank would provide affected employees with financial support, outplacement services and retraining opportunities.

    The Swiss bank, which has a combined global workforce of nearly 122,000, gave no further details on the numbers of likely layoffs outside of Switzerland in its second quarter earnings statement — the first report since it acquired its rival.

    UBS confirmed plans to retain Credit Suisse’s banking operations in Switzerland, and fully absorb those into the newly-merged group, rather than opting for a spin-off or IPO, even though that may have resulted in fewer redundancies.

    “Our analysis clearly shows that a full integration is the best outcome for UBS, our stakeholders and the Swiss economy,” Ermotti said in a statement. He added that this was “one of the biggest and most complex bank mergers in history.”

    UBS said that it expected to generate more than $10 billion in savings from the integration by the end of 2026, $1 billion more and a year earlier than planned when the takeover was announced in March. The bank’s shares gained as much as 7% on the news.

    UBS (UBS) agreed on March 19 to buy Credit Suisse for the bargain price of 3 billion Swiss francs ($3.4 billion) in a rescue orchestrated by Swiss authorities to avert a banking sector meltdown.

    UBS posted net profit of $29 billion for the second quarter, reflecting a one-off boost from the acquisition of Credit Suisse at a fraction of its value. But it also benefited from continued strong inflows into its global wealth management business, recording $16 billion of net new money — the highest second-quarter figure in over a decade.

    Controversy in Switzerland

    Credit Suisse went bust after confidence in the ailing lender collapsed and customers yanked their money from the bank. The firm had been plagued by scandals and compliance failures in recent years that wiped out its profit and caused it to lose clients.

    But the death blow came after it acknowledged “material weakness” in its bookkeeping and as the demise of US regional lenders Silicon Valley Bank and Signature Bank spread fear about weaker institutions.

    The combination of the banks has caused controversy in Switzerland because it leaves the country exposed to a single massive financial institution with a market share of about 30% and assets roughly double the size of its annual economic output.

    Taxpayers were originally on the hook for potential losses arising from the deal, but UBS said earlier this month it would no longer need a Swiss government guarantee of 9 billion francs ($10.3 billion) for future potential losses arising from Credit Suisse assets.

    It also said it no longer required a 100 billion franc ($114.2 billion) government-backed loan and that Credit Suisse had repaid an earlier loan from Switzerland’s central bank of 50 billion francs ($57.1 billion).

    “Taxpayers will no longer bear any risks arising from these guarantees,” the Swiss government said at the time.

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  • Nokia says it will cut up to 14,000 jobs | CNN Business

    Nokia says it will cut up to 14,000 jobs | CNN Business

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    Hong Kong
    CNN
     — 

    Nokia will slash up to 14,000 jobs in a major cost-cutting drive to address a “weaker” market environment, it said in a statement on Thursday.

    The Finnish telecom giant, a major provider of 5G equipment that employs 86,000 people, announced the move as part of a wider restructuring that will lower its headcount to between 72,000 and 77,000.

    The move will help the company reduce staffing expenses by 10% to 15%, and save at least €400 million ($421.4 million) in 2024 alone, the company projected.

    Overall, it said the reductions are expected to trim Nokia’s costs by up to €1.2 billion (nearly $1.3 billion) cumulatively by the end of 2026. Nokia (NOK) said it would “act quickly” to make changes.

    “The most difficult business decisions to make are the ones that impact our people,” CEO Pekka Lundmark said in the statement. “We have immensely talented employees at Nokia and we will support everyone that is affected by this process.”

    The announcement came on the same day that Nokia reported worse-than-expected results. It said sales in the third quarter had fallen 15% compared to the same period a year ago, as “macroeconomic uncertainty and higher interest rates continue to pressure operator spending.”

    Mobile network sales fell 19% in the third quarter compared to the previous year, the company added, due to a slowdown in the pace of 5G deployment in markets such as India.

    This week, Swedish rival Ericsson also warned that sales in the second half of 2023 would likely come in lower than usual, echoing Nokia’s remarks of a “challenging environment and macroeconomic uncertainty.”

    But Nokia has maintained its outlook for 2023, forecasting between €23.2 billion and €24.6 billion ($24.4 billion and $25.9 billion) in sales for the full year.

    “We continue to believe in the mid to long term attractiveness of our markets,” Lundmark said.

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  • LinkedIn is cutting more than 650 jobs | CNN Business

    LinkedIn is cutting more than 650 jobs | CNN Business

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    New York
    CNN
     — 

    LinkedIn is laying off 668 people across its engineering, product, talent and finance teams as part of a broader restructuring, the social media platform announced Monday.

    In a blog post, the social media site for professionals said it is making changes to its organizational structure and streamlining its decision making.

    “Talent changes are a difficult, but necessary and regular part of managing our business,” the company said. Microsoft bought LinkedIn in 2016.

    The company is dedicating many of its resources toward artificial intelligence. Recently, LinkedIn announced an AI-assisted candidate discovery for recruiters using the site. And in Microsoft’s most recent earnings report, LinkedIn reported its AI-powered collaborative articles are the fastest-growing traffic driver on the site.

    LinkedIn already cut 716 positions in May and shut down its jobs app in mainland China. That decision was made amid shifts in customer behavior and slower revenue growth, CEO Ryan Roslansky said in a letter to employees.

    In the wake of mass layoffs across the tech sector at the end of last year, LinkedIn enjoyed an uptick in users and “record engagement” among its 875 million members at the time, Microsoft CEO Satya Nadella told analysts in last October’s earnings call.

    The company continues to grow financially. LinkedIn also announced in its most recent earnings report that it surpassed $15 billion in revenue for the first time during this fiscal year, and that its membership growth “accelerated” for the eighth quarter in a row.

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  • How Biden’s SAVE student loan repayment plan can lower your bill | CNN Politics

    How Biden’s SAVE student loan repayment plan can lower your bill | CNN Politics

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    Washington
    CNN
     — 

    While the Supreme Court struck down President Joe Biden’s student loan forgiveness program in late June, a separate and significant change to the federal student loan system is moving ahead.

    Eligible borrowers can now enroll in a new income-driven repayment plan that could lower their monthly bills and reduce the amount they pay back over the lifetime of their loans.

    If borrowers apply this summer, the changes to their bills would take effect before payments resume in October after the yearslong pandemic pause.

    Once the plan, which Biden is calling SAVE (Saving on a Valuable Education), is fully phased in next year, some people will see their monthly bills cut in half and remaining debt canceled after making at least 10 years of payments.

    Unlike Biden’s blocked one-time forgiveness program, the new repayment plan will provide benefits for both current and future borrowers who sign up for it.

    But the benefits will come at a cost to the government. Estimates vary, depending on how many borrowers end up enrolling in the plan, ranging from $138 billion to $475 billion over 10 years. As a comparison, Biden’s student loan forgiveness program was expected to cost about $400 billion.

    The SAVE repayment plan has gone through a formal rulemaking process at the Department of Education. The agency has previously created several other income-driven repayment plans in the same manner without facing a successful legal challenge.

    Some parts of the SAVE plan will be implemented this summer and others will take effect in July 2024. Here’s what borrowers need to know.

    Currently, there are several different kinds of income-driven repayment plans for borrowers with federal student loans. The new SAVE plan will essentially replace one of those, known as REPAYE (Revised Pay As You Earn), while the others are phased out for new borrowers.

    Under these plans, payments are based on a borrower’s income and family size, regardless of how much outstanding student debt is owed.

    There is also a forgiveness component. After making at least 10 years of payments, a borrower’s remaining balance is wiped away.

    Borrowers must have federally held student loans to qualify for the SAVE repayment plan. These include Direct subsidized, unsubsidized and consolidated loans, as well as PLUS loans made to graduate students.

    Parents who took out a federal PLUS loan to help their child pay for college are not eligible for the new repayment plan.

    Borrowers with Federal Family Education Loans, known as FFEL, or Perkins Loans that are held by a commercial lender rather than the government will need to consolidate into a Direct loan in order to qualify.

    Private student loans do not qualify for the new SAVE repayment plan or any other federal repayment plan.

    Borrowers can apply for the SAVE plan by submitting a recently updated application for income-driven repayment plans found here.

    The application may be available intermittently during an initial beta testing period, according to the Department of Education. If the application is not available, try again later.

    Applications submitted during the beta period will not need to be resubmitted once a full website launches later this summer.

    Borrowers can expect to receive an email confirmation after applying.

    People who are already enrolled in the REPAYE repayment plan will be automatically switched to the SAVE plan.

    Borrowers can log in to StudentAid.gov and go to their My Aid page to see what repayment plan they are enrolled in.

    The Department of Education says that it will process applications submitted this summer before payments resume in October.

    “It may take your servicer a few weeks to process your request, because they will need to obtain documentation of your income and family size,” according to the department’s website.

    Under the SAVE plan, monthly payments can be as small as $0.

    Other income-driven repayment plans already offer a $0 monthly payment for some borrowers. But the new SAVE plan lowers the qualifying threshold.

    A single borrower earning $32,800 or less or a borrower with a family of four earning $67,500 or less will see their payments set at $0 if enrolled in SAVE.

    Increase in protected income threshold: Like in existing income-driven repayment plans, a borrower’s discretionary income, generally what’s left after paying for necessities like housing, food and clothing, will be shielded from student loan payments.

    The new SAVE plan recalculates discretionary income so that it’s equal to the difference between a borrower’s adjusted gross income and 225% of the poverty level. Existing income-driven plans calculate discretionary income as the difference between income and 150% of the poverty level.

    This change will result in lower payments for borrowers.

    Interest limit: Under the new payment plan, unpaid interest will not accrue if a borrower makes a full monthly payment.

    That means that a borrower’s balance won’t increase even if the monthly payment doesn’t cover the monthly interest. For example: If $50 in interest accumulates each month and a borrower has a $30 payment, the remaining $20 would not be charged.

    Lower payments for married borrowers: Married borrowers who file their taxes separately will no longer be required to include their spouse’s income in their payment calculation for SAVE. This could lower monthly payments for two-income households.

    Automatic recertification: Borrowers will now be able to allow the Department of Education to access their latest tax return. This will make the application process easier because borrowers won’t have to manually provide income or family size information. It will also allow the department to automatically recertify borrowers for the payment plan on an annual basis.

    Cut payments in half: Payments on loans borrowed for undergraduate school will be reduced from 10% to 5% of discretionary income.

    Borrowers who have loans from both undergraduate and graduate school will pay a weighted average of between 5% and 10% of their income based upon the original principal balances of their loans.

    For example, a borrower with $20,000 from their undergraduate education and $60,000 from graduate school will pay 8.75% of their income, according to a fact sheet provided by the Biden administration.

    Shorter time to forgiveness: Currently, borrowers who pay for 20 or 25 years under an income-driven repayment plan will see their remaining balance wiped away.

    Under the new SAVE plan, those who borrowed $12,000 or less will see their debt forgiven after paying for just 10 years. Every additional $1,000 borrowed above that amount would add one year of monthly payments to the required time a borrower must pay.

    Borrowers who consolidate their loans will receive partial credit for their previous payments toward forgiveness.

    Borrowers will also automatically receive credit toward forgiveness for certain periods of deferment and forbearance, as well be given the option to make additional “catch-up” payments to get credit for all other periods of deferment or forbearance.

    Automatically enroll struggling borrowers: Borrowers who are 75 days late on their payments will be automatically enrolled in the best income-driven plan for them, as long as they have agreed to allow the Department of Education to securely access their tax information.

    This story has been updated with additional information.

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  • Watchdog agency increases its pandemic unemployment benefits fraud estimate to as much as $135 billion | CNN Politics

    Watchdog agency increases its pandemic unemployment benefits fraud estimate to as much as $135 billion | CNN Politics

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    Washington
    CNN
     — 

    As much as $135 billion in fraudulent Covid-19 pandemic unemployment insurance claims were likely paid out, according to a report released Tuesday by the US Government Accountability Office.

    The whopping figure, which equates to as much as 15% of total unemployment benefits distributed during the pandemic, is a notable bump up from the $60 billion the watchdog agency had previously estimated in January.

    In comments on a draft of the GAO report, the Department of Labor said the office is likely overestimating the actual amount of fraud. However, the department’s Office of Inspector General in February said in testimony before a House committee that at least $191 billion in pandemic unemployment benefits payments could have been improper, with “a significant portion attributable to fraud.”

    The GAO pushed back on the department’s assertions in its report and stood by the methodology used.

    “Given that not all potential fraud will be investigated and adjudicated through judicial or other systems, the full extent of UI fraud during the pandemic will likely never be known with certainty,” the GAO report said. “Therefore, it is appropriate to rely on estimates, such as ours, to make more comprehensive conclusions about the extent of fraud in the UI programs during the pandemic.”

    The findings released on Tuesday shed light on the numerous schemes to steal money from a range of hastily implemented pandemic relief programs, which have drawn the attention of congressional lawmakers and prompted legislative action. Last year, President Joe Biden signed two bipartisan bills into law aimed at holding individuals who commit fraud under pandemic relief programs accountable.

    “My message to those cheats out there is this: You can’t hide. We’re going to find you. We’re going to make you pay back what you stole and hold you accountable under the law,” the president said at the time.

    The House of Representatives also passed a bill in May that would help recover fraudulent unemployment insurance benefits paid out during the pandemic. The bill, however, has not been brought to a vote in the Senate.

    Fraud within the nation’s unemployment system skyrocketed after Congress enacted a historic expansion of the program in March 2020. State unemployment agencies were overwhelmed with record numbers of claims and relaxed some requirements in an effort to get the money out the door quickly to those who had lost their jobs.

    But the enhanced payments and lax controls quickly attracted criminals from around the world. States and Congress subsequently tightened their verification requirements in an attempt to combat the fraud, particularly in the Pandemic Unemployment Assistance program, which allowed freelancers, gig workers and others to collect benefits for the first time.

    More than $888 billion in federal and state unemployment benefits were paid from the end of March 2020 through early September 2021, when all the pandemic enhancements ended nationwide, according to the Labor Department Office of Inspector General.

    The GAO report said the “unprecedented demand for benefits and need to quickly implement the new programs increased the risk of fraud.”

    Other pandemic relief programs were also the target of criminals. The GAO in May flagged 3.7 million recipients of Small Business Administration funds as having “warning signs consistent with potential fraud.” The SBA doled out $1 trillion to help small businesses during the pandemic through measures including the Paycheck Protection Program and Covid-19 Economic Injury Disaster Loan program. More than 10 million small businesses were assisted.

    Some of the fraudulent claims have been recouped. States identified $5.3 billion in fraudulent unemployment benefits overpayments and has recovered $1.2 billion, according to the GAO.

    A Justice Department spokesperson told CNN on Tuesday that as of August 30, the department has charged more than 3,000 people for pandemic related fraud.

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  • John King is going all over the map in 2024. What he’s learned so far | CNN Politics

    John King is going all over the map in 2024. What he’s learned so far | CNN Politics

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    A version of this story appears in CNN’s What Matters newsletter. To get it in your inbox, sign up for free here.



    CNN
     — 

    You’re more likely to read about people in the aggregate in this newsletter – how groups are affected by something the government is doing and how polls suggest those groups feel about it.

    CNN’s John King is looking at the 2024 presidential race from the other side in his new “All Over the Map” project. Building relationships with individuals in key states, he plans to chart how their opinions shift over the course of the campaign.

    He’s filed reports from Iowa and New Hampshire so far:

    I talked to King to hear what he’s learned so far. Our conversation, conducted by phone and edited for length, is below.

    WOLF: What are you finding when you talk to people out in the country?

    KING: This is how I started covering politics 106 million years ago. It’s just at this moment in the country where you have this weird combination of polarization and disaffection and a lot of people who are in the middle who would be moderate Republicans or true independents or centrist Democrats are just disgusted and they’re sitting out.

    The people who are sitting out are empowering the extremes, and they know it, but they just can’t stomach national politics. So they vote for mayor and they vote for governor and sometimes they vote for Senate and Congress, but even that pisses them off. So it’s just a weird time.

    WOLF: What I really like in these reports is the nuance of people’s opinions. They don’t fit into the buckets that we create for them here in Washington. How do you find people who will talk to you? I’ve talked to other reporters who have trouble doing that.

    KING: It can be hard sometimes. We’re doing this a number of ways. Some of these are through people I know. The fishermen in New Hampshire we found through a woman I met years ago who’s part of an advocacy group for these independent small fishermen …

    They’re interesting because they’re young, they’re Republican-leaning, they’re really hardworking, blue-collar people. People that when I started doing this – 35 years ago was my first campaign – they were Democrats.

    Michael Dukakis only won 10 states in 1988, but he won West Virginia and Iowa. Farmers and coal miners and fishermen and people who work with their hands were Democrats then. And they are more and more Republicans now.

    The idea here is to build relationships with them all the way through next November and hopefully beyond. But in the 2024 campaign context, we’re not going in to get people at a rally to say, “Are you for (former President Donald) Trump or are you for (President Joe) Biden? Are you for (former South Carolina Gov. Nikki) Haley or are you for (Florida Gov. Ron) DeSantis?”

    We care about that, but I care much more about how they got there. Have they always been there? And again, in all caps in boldface to me is the question: why?

    WOLF: You talk to a solar panel salesman who backs Trump and a commercial fisherman, who you just mentioned, who says Republicans are for the working man. What motivates people whose livelihoods are directly related to climate change to back Republicans who are largely opposed to having any government involvement with doing anything about it?

    KING: That part’s fascinating. Chris Mudd is the solar panel guy in Iowa and Andrew Konchek is one of the fishermen in New Hampshire. And to your point, our business makes the mistake – and the candidates, the politicians and the parties way too often make the mistake – of trying to put people in their lanes and in their boxes. And guess what, everybody is different. It’s a cliche, but it’s true.

    So Chris Mudd – his family has an advertising business that employs just shy of 100 people in Cedar Falls, Iowa. It’s an anchor of the community, especially in a part of the country where you’ve had a lot of economic turmoil in the last 25 years, manufacturing disappearing. These guys are heroes in their communities. They are employers.

    Then he started the spinoff solar installation business, and he admits straight up his business benefits – and quite significantly – from the Biden green energy tax credits. And yet, he says, he would take his chances without them because he thinks that money should be redirected to the border wall. That Trump should finish his border wall.

    It’s not just immigration. It’s American sovereignty and the border. And so he’s willing to take an economic hit for his business. He thinks it would survive, but he would take a hit because immigration, American security, comes first to him.

    The fisherman, on the other hand, wants to stay on the water. He came to Trump in 2016 because Trump was a newcomer, he was the insurgent. He loves the policies. In Andrew’s case, he does not like the tweets. He does not like the chaos. Prefers Trump would talk more about the future, not the past.

    But his industry is in decline. And he says Trump is for less regulation – so they won’t be regulating the fishing industry as much – and he knows Trump hates wind energy farms, and he thinks the biggest immediate threat to his job, two or three years down the road, is a plan to build all these wind turbine farms off the coast of New Hampshire and off the coast of Maine.

    And he thinks they’re gonna kill his business. So he’s for Trump because he wants to pay his mortgage.

    WOLF: You talk to another guy in New Hampshire who’s switching from Trump to Robert F. Kennedy Jr. The conventional wisdom would be that Kennedy would pull from Biden’s support because he is, at least technically, a Democrat. What is happening there?

    KING: So that to me is fascinating on a couple levels. No. 1, Lucas was a Trump 2016 primary voter in New Hampshire. He quickly got turned off by the chaos. He was not for Trump in 2020. He went third party. But he’s a Republican-leaning guy who likes Trump’s policies. Does not like the Trump performance art, I’ll call it.

    You would think he’d be looking for another Republican in this campaign, but he gets all the way over to Robert Kennedy.

    A buddy of his, a crew mate, gave him a Joe Rogan podcast with Bobby Kennedy on it. And Kennedy is talking about how years ago, he helped these fishermen who were being hurt by industrial pollution when he was at the National Resources Defense Council.

    So what was he thinking here? They don’t trust politicians. Politicians promised to help them all the time, and in their view, they never do. So here’s a guy who’s running for president, who actually helped people who do what he does. Done. That’s it. Right?

    Yes, he knows there’s a lot of other controversy about Robert Kennedy. He says there’s going to be controversy about any politician. Here’s a guy who has helped people just like him.

    WOLF: You talked about a couple of people just now who don’t like the Trump noise or chaos, but CNN ‘s latest polling – we just had one in New Hampshire. Trump leads there. He leads in Iowa, according to polling there. What does your reporting on the ground suggest is behind the fact that none of these many Trump challengers have caught on?

    KING: Well, one of the issues is just that there are so many of them. The numbers are part of it, without a doubt. But a lot of these Republicans also view Trump as kind of an incumbent. And to a degree, he also benefits from the cynical effort to convince so many Republicans that he didn’t lose last time, even though we all know he did.

    If you look at our New Hampshire poll, even a lot of Republicans who support the other candidates think Trump is the strongest general election candidate. That’s helping him. I think the bigger part there is just that the base is loyal to him.

    He can be beat. Six in 10 Republicans in New Hampshire want somebody else, but there are 10 other people running and the support is fractured. Until you have a singular alternative, there’s no way to beat Trump.

    The only thing I would add to that is what several Trump voters in New Hampshire (told us). They’re planning to vote for him, make no mistake, but they say it’s not as exciting. It’s not the same as it was in 2015 and 2016, when he was new, when that hostile takeover was so dramatic and to many Republicans so exciting.

    The establishment didn’t think so, but a lot of Republican voters found it very exciting. Trump is not the new guy anymore. And in some ways, he’s the new establishment. That doesn’t mean his people aren’t loyal, but in the back of their mind, there does seem to be a little bit of, “I’m open to some change.”

    WOLF: Joe Biden didn’t win either Iowa or New Hampshire in the 2020 primaries. And for a complicated and very strange Democratic reason, he may not take part in those contests this year. His nomination is probably a foregone conclusion, but what did you hear from Democrats in those states?

    KING: I want to be a little careful here because we haven’t spent a ton of time with Democrats. The project’s going to expand over the next 13, 14 months, through the election.

    The biggest question right now is can Trump be stopped and who is the Republican nominee going to be? So that’s where we have put 75, 80% of our energy and focus. Doesn’t mean when we go into the states, we’re not meeting and talking to Democrats, but I would be more careful about taking the anecdotal reporting we get from six, eight, 10, 12 voters and projecting it out.

    I will say that a number of Democrats ask us, “Do you think there’s any chance he doesn’t run still?” Or they will share their own worries that there will be some event that will force him to not run again.

    The age thing is a nagging thought for Democrats. Age, or is he up to the job might be a better way to put it. Does he have the stamina for another term? That’s lingering.

    You don’t see any evidence that there’s anybody – no Democrat is running who has a serious chance or anything like that. We’re going get to the swing states as we go forward. I have a number of questions about whether key pieces of the Biden coalition are energized for any number of reasons.

    Sometimes you hear this age, stamina, up-to-the-job question. Other times you hear, if you talk to organizers and activists, that some of the people absolutely critical to the Democratic coalition – blue-collar Black workers, blue-collar Latino workers – are still feeling it from inflation, don’t feel like the economy’s bounced back.

    Those are things to cover as we go forward. I would not make any big sweeping findings in my reporting on the Democrats so far. I’ve got more questions than I have answers.

    WOLF: Let me tweak that a little bit. Separating you from these reporting trips, as somebody who’s covered so many presidential elections, what could be the potential effect of the president not taking part in the first two contests?

    KING: New Hampshire is very parochial. There are a lot of Democrats there who are, forgive my language, but pissed off at him. I think he could be “embarrassed” in New Hampshire.

    Now, does it have any lasting meaning? Let’s see what happens.

    The president did something, actually, that’s pretty courageous. I do not remember one cycle where there hasn’t been at least a conversation about, “Is it time to change this Iowa and New Hampshire thing?”

    The Iowa electorate is 90% White. The New Hampshire electorate is 90% White. The numbers are even higher than that if you look at the Republican electorate. They’re overwhelmingly White states. They do not reflect the diversity, both from an ethnic perspective and even an economic perspective, of the Democratic Party.

    This conversation comes up every four years in both parties. Are you gonna change it? Biden had the guts to do it. The cynic would say he did it for the reasons you mentioned – that he lost Iowa and New Hampshire, and he’s lost them before. That wasn’t the first time and so he wanted a new way. He wanted the Biden way.

    Of course that’s one of the reasons he did it. Because he has more success in South Carolina. He has a history. So he has tilted the Democratic playing field to his favor. A bad number in New Hampshire might be embarrassing, but I think they’ve actually more protected themselves than exposed themselves by doing it this way.

    My bigger question is does the way they’ve changed the Democratic (process) actually mask weaknesses? If there’s a weakness in Democratic enthusiasm, if there’s a turnout problem, they need to get a handle on that as soon as possible.

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  • Epic Games to lay off 16% of its workforce | CNN Business

    Epic Games to lay off 16% of its workforce | CNN Business

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    CNN
     — 

    Epic Games, the maker of Fortnite, said on Thursday that it will lay off 16% of its staff, around 830 employees, as it attempts to reverse what CEO Tim Sweeney called “unrealistic” spending.

    In a letter to employees Thursday, Sweeney said the video game company had been “spending way more money than we earn, investing in the next evolution of Epic.”

    “I had long been optimistic that we could power through this transition without layoffs, but in retrospect I see that this was unrealistic,” Sweeney said in the letter, which the company shared publicly. He added that Epic plans to divest from the online independent music platform Bandcamp, which it bought last year and which will now be acquired by the music marketplace firm Songtradr. Epic will also spin off most of its marketing division SuperAwesome into a standalone company.

    Epic’s layoffs are just the latest job cuts to hit the tech industry, which was forced to adjust after the stunning growth many companies saw during the height of the Covid-19 pandemic began to slow. Meta, Microsoft, T-Mobile, Lyft and others have all reduced their workforces earlier this year. More recently, Google parent Alphabet made its second round of layoffs of the year, eliminating several hundred recruiting jobs in September after having cut 12,000 employees in January.

    About two-thirds of Epic’s Thursday layoffs will impact employees outside the company’s “core development” teams, Sweeney said. Some laid off workers announced on LinkedIn that they had been affected, including employees working in user experience for Fortnite, production, employee engagement and recruitment.

    Laid off employees will receive a severance offer that includes six months of base pay, accelerated stock vesting and other benefits, according to Sweeney.

    “We’re cutting costs without breaking development or our core lines of businesses so we can continue to focus on our ambitious plans,” Sweeney said. “Some of our products and initiatives will land on schedule, and some may not ship when planned because they are under-resourced for the time being. We’re ok with the schedule tradeoff if it means holding on to our ability to achieve our goals.”

    The Epic layoffs also come amid the latest escalation in a protracted legal battle between the video game company and tech giant Apple. Following a yearslong back-and-forth over an antitrust lawsuit brought by Epic over Apple’s App Store payment practices, both companies have asked the US Supreme Court to review a lower court ruling in the case.

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  • Fact check: Biden makes false claims about the debt and deficit in jobs speech | CNN Politics

    Fact check: Biden makes false claims about the debt and deficit in jobs speech | CNN Politics

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    Washington
    CNN
     — 

    During a Friday speech about the September jobs report, President Joe Biden delivered a rapid-fire series of three false or misleading claims – falsely saying that he has cut the debt, falsely crediting a tax policy that didn’t take effect until 2023 for improving the budget situation in 2021 and 2022, and misleadingly saying that he has presided over an “actual surplus.”

    At a separate moment of the speech, Biden used outdated figures to boast of setting record lows in the unemployment rates for African Americans, Hispanics and people with disabilities. While the rates for these three groups hit record lows earlier in his presidency, he didn’t acknowledge that they have all since increased to non-record levels – and, in fact, are now higher than they were during parts of Donald Trump’s presidency.

    Here’s a fact check.

    Biden said in the Friday speech that Republicans want to “cut taxes for the very wealthy and big corporations,” which would add to the deficit. That’s fair game.

    But then he added: “I was able to cut the federal debt by $1.7 trillion over the first two-and-a – two years. Well remember what we talked about. Those 50 corporations that made $40 billion, weren’t paying a penny in taxes? Well guess what – we made them pay 30%. Uh, 15% in taxes – 15%. Nowhere near what they should pay. And guess what? We were able to pay for everything, and we end up with an actual surplus.”

    Facts First: Biden’s claims were thoroughly inaccurate. First, he has not cut the federal debt, which has increased by more than $5.7 trillion during his presidency so far after rising about $7.8 trillion during Trump’s full four-year tenure; it is the budget deficit (the one-year difference between spending and revenues), not the national debt (the accumulation of federal borrowing plus interest owed), that fell by $1.7 trillion over his first two fiscal years in office. Second, Biden’s 15% corporate minimum tax on certain large profitable corporations did not take effect until the first day of 2023, so it could not possibly have been responsible for the deficit reduction in fiscal 2021 and 2022. Third, there is no “actual surplus”; the federal government continues to run a budget deficit well over $1 trillion.

    CNN has previously debunked Biden’s false claims about supposedly having cut the “debt” and about the new corporate minimum tax supposedly being responsible for deficit reduction in 2021 and 2022. The White House, which declined to comment on the record for this article, has corrected previous official transcripts when Biden has claimed that the debt fell by $1.7 trillion, acknowledging that he should have said deficit.

    As for Biden’s vague additional claim that “we end up with an actual surplus,” a White House official said Friday that the president was referring to how the particular law in which the new minimum tax was contained, the Inflation Reduction Act of 2022, is projected to reduce the deficit. But Biden did not explain this unusual-at-best use of “surplus” – and since he had just been talking about the overall budget picture, he certainly made it sound like he was claiming to have presided over a surplus in the overall budget. He has not done so.

    Matthew Gardner, a senior fellow at the Institute on Taxation and Economic Policy, a liberal think tank, said in response to the White House explanation: “Well he didn’t say ‘budget surplus’ I suppose. But in federal budget conversations, the word surplus has a very specific meaning. It doesn’t mean ‘additional,’ it means revenues exceed spending.” He noted earlier Friday that there hasn’t been a federal budget surplus since 2001.

    It’s worth noting, as we have before, that Biden’s Friday comments would be missing key context even if he had not inaccurately replaced the word “deficit” with “debt.” It’s highly questionable how much credit Biden himself deserves for the decline in the deficit in 2021 and 2022. Independent analysts say it occurred largely because emergency Covid-19 relief spending from fiscal 2020 expired as scheduled – and that Biden’s own new laws and executive actions have significantly added to current and projected future deficits. In addition, the 2023 deficit is widely expected to be higher than the 2022 deficit.

    More on the corporate minimum tax

    When Biden spoke Friday about “those 50 corporations that made $40 billion, weren’t paying a penny in taxes,” he was referring, as he has in the past, to an Institute on Taxation and Economic Policy analysis published in 2021 that listed 55 companies the think tank found had paid no federal corporate income taxes in their most recent fiscal year.

    But it was imprecise, at best, for Biden to say Friday that we made “them” pay 15% in taxes. That’s because the new 15% minimum tax applies only to companies that have an average annual financial statement income of $1 billion or more – there are lots of nuances involved; you can read more details here – and only 14 of the 55 companies on the think tank’s list reported having US pre-tax income of at least $1 billion. In other words, some large and profitable companies will not be hit with the tax.

    The federal government’s nonpartisan Joint Committee on Taxation projected last year that the tax would shrink deficits by about $222 billion through 2031, with positive impacts beginning in 2023. Gardner said Friday that he fully expects the tax to play a role in reducing deficits going forward, but he said its deficit-reducing impact “might be lower than expected” in 2023 because the Treasury Department – which has been the subject of intense lobbying from corporations that could be affected – has taken so long to implement the details of the law that the Internal Revenue Service ended up waiving penalties on companies that don’t make estimated tax payments on it this year.

    Regardless, Gardner said, “The minimum tax did not reduce the deficit at all in fiscal years 2021 or 2022 because it didn’t exist during those years.”

    Early in the Friday speech, Biden boasted of statistics from the September jobs report that was released earlier in the day. But then he said, “We’ve achieved a 70-year low in unemployment rate for women, record lows in unemployment for African Americans and Hispanic workers, and people with disabilities – folks who’ve been left behind in previous recoveries and left behind for too long.”

    Facts First: Three of these four Biden unemployment boasts are misleading because they are out of date. Only his claim about a 70-year low for women’s unemployment remains current. While the unemployment rates for African Americans, Hispanics and people with disabilities did fall to record lows earlier in Biden’s presidency, they have since increased – to rates higher than the rates during various periods of the Trump administration.

    Women: The seasonally adjusted women’s unemployment rate was 3.4% in September. That’s a tick upward from the 3.3% rate during two previous months of 2023, but it’s still tied – with two months of the Trump administration – for the lowest for this group since 1953, 70 years ago.

    African Americans: The seasonally adjusted Black or African American unemployment rate was 5.7% in September, up from the record low of 4.7% in April. The current 5.7% rate is higher than this group’s rates during four months of 2019, under Trump.

    Hispanics: The seasonally adjusted Hispanic unemployment rate was 4.6% in September, up from the record low of 3.9% from September 2022. The current 4.6% rate is higher than this group’s rates for every month from April 2019 through February 2020 under Trump, plus a smattering of prior Trump-era months.

    People with disabilities: The unemployment rate for people with disabilities, ages 16 and up, was 7.3% in September, up from a record low of 5.0% in December 2022. (The figures only go back to 2008, so the record was for a period of less than two decades.) The current 7.3% rate is higher than this group’s rates during eight months of the Trump presidency, seven of them in 2019.

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  • Call to arms: Thousands of Revolutionary War stories are waiting to be told. A new project asks the public to help uncover them | CNN

    Call to arms: Thousands of Revolutionary War stories are waiting to be told. A new project asks the public to help uncover them | CNN

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    CNN
     — 

    The National Park Service and US National Archives and Records Administration are calling on Americans to help reveal the untold stories of the United States’ first veterans to commemorate the upcoming 250th anniversary of American independence.

    The Revolutionary War Pension Files Transcription Project aims to transcribe approximately 2.3 million original documents that correspond with more than 83,000 individual soldiers. The information spans 150 years, from wartime records to 20th century inquiries made by veterans’ descendants.

    The goal of the project is to unearth personal stories from the battlefield and home front, using information included in federal pension applications from Revolutionary War veterans and their widows, according to the National Park Service. And they need the public’s help to do it.

    “We’re asking the public in the next three years, as we lead up to the 250th anniversary of the United States, to help us transcribe the pension files to be able to unlock these stories of our first veterans,” Suzanne Isaacs, community manager for the National Archives Catalog, said.

    While the Continental Army issued signed discharge papers, veterans who served in the militia had to give oral testimonies and provide witnesses to corroborate their stories. As a result, thousands of court records have yet to be digitally transcribed in the National Archives Catalog.

    These verbal attestations were an opportunity for veterans to tell their stories in vivid detail. When pension acts were put in place in the early 19th century, many veterans were elderly and illiterate, so they gave detailed accounts in hopes of recording their life stories.

    However, relying on oral testimonies also allowed for embellished tales that were difficult to disprove.

    For example, William Shoemaker testified that he spent 18 months as a prisoner of war to receive pension pay. Historian Todd Braisted discovered, more than two centuries later, that Shoemaker joined a loyalist unit and was captive for only two months.

    When requirements for pension pay loosened in the 1830s, widows who were married before the conclusion of the war became eligible to apply. To receive funds, widows had to give oral testimonies about their husbands’ service and provide proof of their marriage.

    That means the National Archives files also include documents such as marriage licenses, wartime letters and soldiers’ diaries.

    Judith Lines applied for widow’s pension in 1837 using one of the rarest kinds of documents – a correspondence from her husband written during his service under Gen. George Washington. John Lines’ 1781 note is the only known preserved letter penned by a Black Continental soldier.

    With the help of volunteer archivists, these rare, firsthand stories from the Revolutionary War will be more accessible to the public and archived in the National Archives. Volunteers can register for a free account with the National Archives Catalog. No prior experience is required.

    “This project is a way to help make accessible the records of our first veterans, the veterans of the Revolutionary War,” Isaacs said.

    The veterans and their families might never have imagined that their accounts of the war and its effects on their lives could be so readily available to the nation. The documents included in this project offer a personal perspective that, before now, was largely unknown.

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  • 6 migrant workers were hit and injured by an SUV outside a North Carolina Walmart, and authorities are searching for the driver, police say | CNN

    6 migrant workers were hit and injured by an SUV outside a North Carolina Walmart, and authorities are searching for the driver, police say | CNN

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    CNN
     — 

    Six migrant workers were hit and injured by an SUV outside a North Carolina Walmart in what appears to be an “intentional assault” Sunday afternoon, and authorities are looking for the driver involved, police said.

    The incident happened after 1 p.m. outside the store in the city of Lincolnton, about 38 miles northwest of Charlotte, according to the Lincolnton Police Department.

    All six injured were taken to a local hospital with various injuries, police said, adding that none of the injuries appeared life-threatening.

    Police described the driver involved in the incident as “an older white male” who was driving an older model mid-size black SUV with a luggage rack.

    The department didn’t provide details on the circumstances of the collision, or what led police to believe it may have been intentional.

    “The motives of the suspect are still under investigation,” Lincolnton Police said on Facebook.

    Police released surveillance images of a black SUV and asked for the public’s assistance in identifying the vehicle and its driver.

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  • Democratic worries bubble up over Cornel West’s Green Party run as Biden campaign takes hands-off approach | CNN Politics

    Democratic worries bubble up over Cornel West’s Green Party run as Biden campaign takes hands-off approach | CNN Politics

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    CNN
     — 

    Cornel West’s candidacy on the Green Party line confuses some of his longtime political allies and friends – while also alarming top Democrats and Black leaders as a potential ticking time bomb for President Joe Biden in next year’s election.

    The political philosopher and proud agitator is tapping into his semi-celebrity to attack Biden from the left – where the president has never been fully embraced – and describing his administrations as a mere “postponement of fascism.” And as concerns over Black voter enthusiasm bubble among Democratic operatives, West is also making a deliberately race-based argument, accusing the Democratic establishment of treating the electorate like “a plantation where you got ownership status in terms of which way you vote.”

    Most top Democrats remain skeptical West will raise enough money to mount an extensive operation – he jumped from the little-known People’s Party to the Greens after a rocky rollout – and are following the Biden campaign’s lead of deliberately not engaging with him.

    But his decision to run on a ballot line which Democrats blame for spoiling both the 2000 and 2016 elections, when Green presidential nominees drew enough votes to help give Republicans key states in the Electoral College, has made his candidacy a running source of angst and, increasingly, a topic of private conversations among multiple Democratic leaders nationally and in battleground states

    And while many political insiders have been buzzing about the group No Labels trying to get on the ballot in many states with a presidential candidate, the Greens are already there in 16 – and in 2016, got up to 44, including the most competitive states.

    “This is going to sneak up on people,” said David Axelrod, a former Barack Obama adviser who also serves as a CNN political commentator. “I don’t know why alarm bells aren’t going off now, and they should be at a steady drumbeat from now until the election.”

    There are no sirens blaring, but top Democrats in swing states have taken notice.

    “We should be concerned. I don’t think time’s necessarily on our side. The longer these things hang out there, the worse it tends to get,” said Pennsylvania Lt. Gov. Austin Davis, who acknowledged that the conversation about West has, so far, been more among insiders than voters. “We should try to deal with it rather quickly if we can.”

    For now, Biden advisers remain hopeful that the president’s record and voters’ memories of 2016, when Jill Stein’s campaign won tens of thousands of votes in battleground states Hillary Clinton lost, will keep supporters from straying to West. It’s an approach much like the one being taken by Michigan Democratic chair Lavora Barnes, who told CNN, “I don’t think Cornel West or the Green Party is something we need to worry about, but it’s absolutely something we need to keep an eye on.”

    Barnes has been already begun to talk about what she’s seeing, telling CNN that she recently met with her Black caucus chair about strategies to head off West by stepping up talk about the Biden administration’s accomplishments for Black voters.

    Personal affection and respect for West, a giant of the American left and pioneering political theorist, has led many to try to avoid discussing their dismay over his run.

    At the top of that list, to the frustration of several top Biden supporters who discussed their feelings with CNN: Vermont Sen. Bernie Sanders, whose two presidential campaigns prominently featured West as a speaker at his rallies and included the professor as part of his traveling inner circle.

    Sanders declined multiple requests to discuss West’s campaign, only telling CNN that he did not speak to the candidate before launching. He shut down questions when asked directly about some of West’s comments about Biden.

    “Dr. West is one of the most pure, good, and honest souls I have ever encountered,” said Ari Rabin-Havt, a Sanders confidant and one of his deputy campaign managers in 2020. “That can lead someone, even one of the most brilliant minds on the planet, to make incredibly wrong political choices.”

    Multiple sources in leadership roles at several new progressive establishment groups told CNN they were surprised by West’s candidacy and their silence has been intentional. Even media outlets and leftist commentators who have held him in high regard for decades are urging West to reconsider and, in some notable cases, run as a Democrat in a primary challenge to Biden. Multiple top former Sanders aides told CNN they opposed the Green Party run and don’t understand what he is trying to accomplish through it.

    The most the senator himself has discussed the run was back in April, saying, “People will do what they want to do.”

    West was one of the early boosters of the modern Democratic Socialists of America in the early 1980s and later served as an honorary chair. But even two prominent members, asking for anonymity to speak critically about a man they admire, questioned West’s timing and reading of the political moment.

    “He’s missing the mark in two ways: He’s either a threat to bringing the GOP back (as a spoiler) or, if you don’t care about that, he’s not doing the right gestures and organizational discipline” to appeal to far-left groups, one of the influential DSA members said.

    Some high-profile Sanders supporters, though, are moving West’s way.

    Nina Turner, a national co-chair of Sanders 2020 campaign who has remained a consistent Biden critic, described West’s run as a “moral calling,” though she is not currently working with the campaign in any formal capacity.

    Another ally from the Sanders’ team, Ben Cohen, the co-founder of Ben & Jerry’s, told CNN he had not spoken to West since the campaign began and that he had “no idea” about his friend’s plans but would donate to the campaign. He said he would “see how things are panning out” when the election nears before deciding how to vote.

    While Biden has consistently registered strong support among Black voters, strategists looking ahead to 2024 are already worried about what those trends may mean for Pennsylvania, North Carolina, Georgia, Michigan and Wisconsin – all of which are critical to the president’s reelection hopes – if Black voters don’t show up for Biden in force. (Though there are fewer Black voters in Arizona, it’s also a state with a long history of left-leaning voters going Green, and where Biden edged out Trump by a little under 13,000 votes.)

    Sensing that Black voter engagement will be a problem for them, the Congressional Black Caucus this week already launched a new PAC to fund a wider array of efforts to make the case into 2024. Davis said that will be part of the work he is looking to do, too, citing Black unemployment at the lower rate on record, the high rate of creation for new Black-owned businesses and investments in local projects like bus rapid transit in Pittsburgh and new water lines.

    Asked about West’s candidacy, New York Rep. Greg Meeks – the chair of the Congressional Black Caucus PAC – said he is confident the support will be there, citing other elements of Biden’s record, including money to take lead out of pipes, reduced insulin costs and low-cost broadband

    “In this election, we’re going to take our case directly to Black voters to ensure our community is not bamboozled by perennial distractions,” Meeks said.

    Billy Honor, the director of organizing for the New Georgia Project Action Fund, told CNN his group is also planning a campaign to highlight Democrats’ accomplishments, since Biden, despite enjoying a trusted brand with older Black voters, “is not popular in Atlanta.”

    “West has the potential because he is – whether people like it or not, it’s the consequence of having such a long life in public service and in the public eye – he is the most famous Black intellectual of our generation,” Honor said. “There’s W.E.B. Du Bois and then there’s Cornel West.”

    That public esteem and name recognition, along with a progressive agenda aligned with many organizers and activists, Honor said, could also add to West’s appeal with younger voters.

    The Biden campaign and the Democratic National Committee declined comment on West.

    West still has to secure the Green nomination, but he insists he will not be a spoiler next November. He disputed that Jill Stein was when she ran on the Green line in 2016 and won more votes than the margin of difference in several states, including Wisconsin, Pennsylvania and Michigan, saying those people otherwise wouldn’t have voted at all.

    But Democrats remain traumatized by that and many still blame Stein – also accusing her of being another pawn of Vladimir Putin’s attack on the 2016 elections, by virtue of her attendance at a state-owned “Russia Today” party in Moscow in 2015 and Russian troll farm activity boosting her campaign.

    Stein, who is now working as the West campaign’s “interim coordinator” to help build out his team and fortify relationships with other Greens, told CNN in an interview that Democratic backlash to West’s candidacy hardly warranted a mention in their early discussions.

    Faiz Shakir, Sanders’ campaign manager in 2020, who said news of West’s campaign announcement “hit me completely out of the blue,” voiced a concern that is shared by many leaders on the left: “I just hope and pray that he’s not being taken advantage of and not being exploited by others for ulterior motives.”

    West bristled at such suggestions.

    “When people say, ‘Well, the Green Party’s using West,’ I mean, I don’t look at it that way. I think that we’re all in this movement together,” West added. “We’re trying to do the best that we can to bring some kind of light on the suffering and to bring some kind of vision and organization to try to minimize the suffering.”

    Andrew Wilkes, a pastor in Brooklyn, said his longtime friend and ally’s aim was simple.

    “At the heart of it,” he said, “is the desire to make sure you have a truly representative and equitable democracy.”

    The first Black student ever to get a PhD in philosophy from Princeton University, West will be on sabbatical after finishing the spring semester teaching at the Union Theological Seminary.

    But he’s been a force in politics directly since his best-selling 1993 book “Race Matters,” still frequently cited by younger movement progressives as one of the texts that drew them into left-wing politics.

    “What makes Dr. Cornel West so formidable is that he does have a relationship across generations,” Turner said. “Because of what’s he’s done in the classroom with four walls – and the classroom with no walls.”

    In 2000, he campaigned for Ralph Nader, the Green Party nominee that year. In 2008, he backed Obama, though some Black leaders and older Black voters have never forgiven West for turning into one of the harshest critics of the first Black president.

    He says he was just doing what he had always promised in pushing Obama to go harder on Wall Street and in tackling poverty.

    “It looked like I was turning on him,” West added. “No, no. I was turning toward the people and he was the one that turned away from the people, poor and working people.”

    After supporting Sanders in 2020, West endorsed and even stumped for Biden as part of what he described as an “antifascist coalition” arrayed against Trump.

    But he told CNN he could not bring himself to pull the lever for Biden.

    “Once I got in there, I thought about mass incarceration, the Crime Bill, thought about the invasion, occupation of Iraq. Those are crimes against humanity, for me,” West said, explaining that because Sanders had asked him not to use his name as a write-in, he “ended up not being able to vote for anybody.”

    West’s view of Biden has only grown dimmer.

    “Biden will only be a caretaker government against fascism,” West said. “You don’t fight fascism by simply supporting postponement administrations.”

    Jeff Weaver, who ran Sanders’ 2016 campaign before becoming a senior adviser four years later, suggested that Biden’s relationships on the left were more durable than many pundits realize.

    Weaver said the “respect” with which Biden has treated progressives – coupled with the threat of Trump looming – “goes a long way.”

    West still harbors complaints about how he feels Sanders was not treated fairly by the Democratic Party. And though he did not dispute the assessment that Biden has worked collaboratively with progressives, he argued that the partnership was unbalanced.

    “When we talk about a coalition, this is not a jazz band where everybody’s got equal voices,” West said. “Not at all. This is one that is hierarchical.”

    West doesn’t yet have a campaign website with a list of specific policy prescriptions, though he has been fiercely critical of NATO and the Biden administration’s decision to send cluster bombs to Ukraine.

    In a tweet accompanying his campaign launch video last month, West indicated that his campaign’s message would mirror his past work and rhetoric – ending poverty and mass incarceration, pushing for guaranteed housing, health care, education and living wages.

    Despite frequent appearances in the media since launching, West still has not held a proper, in-person campaign rally.

    That will change toward the end of the summer, he said, when he plans to do a “symbolic kickoff” in Mississippi for an event marking the anniversary of the murder of Emmett Till in 1955. West says the family invited him, and he decided to make that his first public event as a candidate.

    In the run-up to that more traditional launch, West said, he hopes to build his currently bare bones campaign up and raise the money to pay for it.

    “We are wrestling with it,” he said, “day-by-day.”

    CORRECTION: An earlier version of this story incorrectly stated Andrew Wilkes’ relationship with Cornel West. The two are longtime allies and friends.

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  • Goodbye child care centers, hello elderly homes: South Korea prepares for aging population | CNN

    Goodbye child care centers, hello elderly homes: South Korea prepares for aging population | CNN

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    Seoul, South Korea
    CNN
     — 

    South Korea is getting older – and its care facilities are changing to match.

    The number of child care facilities in the country has shrunk by almost a quarter in just a few years, reflecting authorities’ unsuccessful campaign to encourage couples to have more babies.

    In 2017, there were more than 40,000 child care facilities, according to new government figures released Friday – by the end of last year, that number had fallen to roughly 30,900.

    Meanwhile, as the population rapidly ages, the number of elderly facilities has boomed from 76,000 in 2017 to 89,643 in 2022, according to the country’s health and welfare ministry.

    Elderly facilities include senior care homes, specialized hospitals, and welfare agencies that help the elderly navigate social services or protections. Meanwhile, the child care facilities listed include public services as well as private and corporate ones.

    The shift illustrates a years-long problem South Korea has thus far failed to reverse. It has both one of the world’s fastest aging populations and the world’s lowest birth rate, which has been falling continuously since 2015 despite authorities offering financial incentives and housing subsidies for couples with more babies.

    Experts attribute this low birth rate to various factors, including demanding work cultures, stagnating wages, rising costs of living, the financial burden of raising children, changing attitudes toward marriage and gender equality, and rising disillusionment among younger generations.

    By the late 2000s, the government had begun warning that policy measures were needed to encourage families to grow. Last September, South Korean President Yoon Suk Yeol admitted that more than $200 billion has been spent trying to boost the population over the past 16 years.

    But so far nothing has worked – and the effects have been increasingly visible in the social fabric and day-to-day life.

    Many elementary, middle and high schools are closing around the country due to a lack of school-age children, according to Korean news agency Yonhap, citing the education ministry. Figures from the country’s official statistics body show the overall number of middle and high schools have remained stagnant for years, only rising by a few dozen since 2015.

    In Daejeon, south of Seoul, one such abandoned school has become a popular spot for photographers and urban explorers; images show eerily empty hallways and a school yard overgrown by wild grass.

    A photographer outside an abandoned school near Daejeon, South Korea, on March 22, 2014.

    Similar crises have been seen in other East Asian countries with falling birth rates. One village in Japan went 25 years without recording a single birth. The arrival of a baby in 2016 was heralded as a miracle, with elderly well-wishers hobbling to the infant’s house to hold him.

    Meanwhile, South Korea’s expanding elderly population has meant an explosion in demand for senior services, placing strain on a system scrambling to keep up.

    South Korea has the highest elderly poverty rate among the OECD nations (Organisation for Economic Co-operation and Development), with more than 40% of people over 65 years old facing “relative poverty,” defined by the OECD as having income lower than 50% of median household disposable income.

    “In Korea, the pension system is still maturing, and current generations still have very low pensions,” the OECD wrote in a 2021 report.

    Experts point to other factors such as global economic trends, the breakdown of old social structures that saw children looking after their parents, and insufficient government support for those struggling financially.

    That means a number of homeless elderly people – part of a generation that helped rebuild the country after the Korean War – having to seek assistance from shelters and soup kitchens.

    The rapid rise in elderly facilities in recent years may help alleviate some of these problems. But longer-term concerns remain about the future of Korea’s economy, as the number of young workers – who are crucial in propping up the health care and pension systems – slowly dwindle.

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  • California is about to give Hollywood studios a lucrative tax deal during the writers’ strike | CNN Business

    California is about to give Hollywood studios a lucrative tax deal during the writers’ strike | CNN Business

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    CNN
     — 

    The state of California is about to give movie and TV studios a new lucrative tax perk.

    A bill awaiting California Gov. Gavin Newsom’s signature would the state’s tax incentive program for film and TV productions for five years but with a key update: Studios with more tax credits than they can use will be able to exchange those credits for cash. The bill, part of the state’s overall budget plan, was passed by California legislators on Tuesday, and Newsom is expected to sign it on Friday.

    The bill also mandates any production that receives the tax credit to comply with new on-set firearm safety protocols following the 2021 deadly shooting on the set of Alec Baldwin’s film “Rust,” and it implements requirements aiming to meet diversity hiring targets.

    The new, refundable tax credits come as competition for film and TV production from other states and countries is on the rise. States like New York and Georgia are gaining share of the TV and film market, thanks to their own tax incentive programs, according to a 2021 report from FilmLA — a nonprofit organization that helps creators with production planning and film permitting.

    The bill should be a boon for studios like Netflix. The streaming giant had not previously been able to take full advantage of the tax credit program since it uses a separate research and development incentive from California to significantly reduce its tax liability. In a 2020 SEC filing, Netflix said it had $250 million in California R&D tax credits — far more than it could use.

    Disney and Comcast’s Universal Studios were the only two studios that benefited under California’s existing tax incentive program, due to their relatively larger tax bills from theme parks, according to Democratic assemblywoman Wendy Carrillo, one of the bill’s sponsors. The new bill could benefit other studios that don’t have theme parks in the state, including Warner Bros, which is owned by CNN parent company Warner Bros. Discovery.

    The bill’s safety measures require productions to employ an adviser to oversee production safety and complete detailed risk assessments. Studios must also establish training requirements and standards that focus on the safe handling of firearms. Many of these safety protocols were voluntary before the bill.

    Dave Cortese, the Democratic state senator who introduced the safety protocols in the bill, said research for the legislation began soon after actor Baldwin fired a live round of ammunition from what he said he believed to be an unloaded prop gun during a film’s rehearsal. Cinematographer Halyna Hutchins was killed.

    “Conversations about this legislation started the week after the tragic loss of a cinematographer. Those negotiations have produced the nation’s first and best safety practices for California workers in the state’s vital motion picture industry,” Cortese said.

    In addition to refundable tax credits and stricter safety standards, the bill establishes specific diversity requirements. Studios must submit data about the diversity of their workforce to qualify for the full credit. The bill also adds a new member to the state’s film commission with diversity, equity, and inclusion expertise.

    The tax perk for Hollywood comes amid ongoing tension between the industry’s workforce and the studios’ bosses. The Writers Guild of America, has been on strike since early May, halting the production of many shows. The association’s more than 11,000 members are fighting over substantial issues like pay, the number of writers staffed on any given project, and whether artificial intelligence can be used in writing material.

    Actors may soon stage a work stoppage, as well. Members of the actors’ union, SAG-AFTRA, have voted to authorize a strike against the major studios if they cannot agree to the terms of a new contract. Similar to the WGA, the actors’ union has voiced similar concerns about pay and the use of AI.

    Democratic lawmakers in California celebrated the bill. Carrillo said the plan was a “grand compromise,” and it would help protect jobs in the state.

    “These are hundreds of thousands of jobs, most of which impact Los Angeles County and the city of Los Angeles. They’re good union jobs, they’re production jobs, they’re creative jobs,” she said.

    However, the bill has attracted some criticism. Chris Hoene, the executive director of the California Budget & Policy Center, a nonprofit think tank that provides analysis on state budget issues intending to improve outcomes for low-income communities and people of color in the state, called it “bad policy.”

    “Refundable tax credits were designed to help low-income households… so to take that refundability structure and apply it to a business tax credit, you would think there are some film companies that struggle to make ends meet and don’t make enough money to owe any taxes, but that’s not how it works,” he said.

    Hoene called the new policy a “giveaway that doesn’t have any positive outcomes.”

    The refundable credits are designed to help more than just the big studios, Carrillo said. Film and TV productions help support surrounding businesses in the area, including “small restaurants and catering services,” Carrillo said.

    “It’s very important that California has a competitive advantage and ultimately keeps these jobs and productions in our state while other states continue to announce more incentives,” she added.

    Still, Hoene argued that there were more effective ways to create well-paying jobs in California.

    “If we wanted to take scarce state resources to help workers, we could do that in ways that could provide them with assistance directly, rather than giving it to large corporations who are already minimizing their tax bills in other ways,” he said.

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  • Biden administration announces more than $3 billion in funding to tackle homelessness with veterans focus | CNN Politics

    Biden administration announces more than $3 billion in funding to tackle homelessness with veterans focus | CNN Politics

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    CNN
     — 

    The Biden administration announced new actions Thursday to help prevent and reduce veteran homelessness across the country, including $3.1 billion in funding to support efforts to quickly rehouse homeless Americans.

    “These funds can be used for a wide range of critical interventions from rental assistance to supportive services to technology and data sharing,” said White House domestic policy adviser Neera Tanden, referring to the funding that will be made available through the Department of Housing and Urban Development under the Continuum of Care program.

    Additional actions being announced Thursday, according to a White House fact sheet, include: $11.5 million in funding for legal services for veterans experiencing homelessness; $58 million worth of funding to help homeless veterans find jobs; and a new series of “boot camps” by HUD and Veterans Affairs to help VA medical centers and public housing agencies more quickly rehouse veterans. The more than $3 billion in funding being announced by HUD is not specifically earmarked for veterans, although it will also go toward helping veterans struggling with homelessness, according to senior administration officials.

    “We like to say here that the phrase, homeless veteran, should not exist in the English language. Ending veteran homelessness has been and continues to be a top priority of the president and his relentless advocacy for that goal has led to very important investments and advancements, including robust funding,” said Veterans Affairs Secretary Denis McDonough, who added that the VA is currently on track to meet its goal of rehousing 38,000 veterans in 2023.

    The VA put 40,401 homeless veterans into permanent housing last year with 2,443 of them returning to homelessness at some point that same year, according to the VA.

    While Thursday’s actions focus on the issue of homelessness for veterans, administration officials hope that progress made in rehousing former service members will help improve efforts to tackle the issue for all Americans experiencing homelessness.

    “Homelessness is a challenge we face as a nation. But most importantly, it is a solvable one,” Tanden told reporters, adding: “There are so many lessons there, that can help us tackle this problem for all Americans.”

    The $58 million in grant funding comes from the Department of Labor Veterans’ Employment and Training Service and will help veterans learn occupational skills, participate in on-the-job training or apprenticeships and provide other support services to reintegrate into the workforce.

    The $11.5 million in legal services grants is a “first-of-its-kind,” according to the White House, and will help veterans obtain representation in landlord-tenant disputes, as well as assist with other court proceedings like child support, custody or estate planning.

    “Legal support can be the difference between becoming homeless in the first instance, or having a safe stable house and a roof over their heads,” McDonough said.

    President Joe Biden has made it a goal of his administration to reduce homelessness by 25% for all Americans by 2025, calling on the country in his State of the Union address this year to do more, including “helping veterans afford their rent because no one should be homeless in this country, especially not those who served it.”

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  • The company supplying water to millions of Londoners is in deep trouble | CNN Business

    The company supplying water to millions of Londoners is in deep trouble | CNN Business

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    London
    CNN
     — 

    Britain’s biggest water supplier said Wednesday it needed to raise more cash from investors, as UK media reported the government was preparing contingency plans to rescue the company.

    Thames Water provides drinking water and waste water services to 15 million customers in London and the southeast of England. The utility, which counts one of Canada’s largest public pension funds among its top investors, has around £14 billion ($17.5 billion) of debt on its balance sheet.

    News that it needs more money came just a day after CEO Sarah Bentley resigned with immediate effect after three years in the role. She was in the second year of an eight-year turnaround plan to address aging infrastructure, tackle leakage and reduce pollution in rivers, a legacy of underinvestment.

    Thames Water received £500 million ($635 million) from shareholders in March, but said Wednesday it would need more.

    The firm “is continuing to work constructively with its shareholders in relation to the equity funding expected to be required to support Thames Water’s turnaround and investment plans,” it added.

    The company said it was keeping the water industry regulator Ofwat “fully informed” of its progress and added that it had a “strong liquidity position,” including £4.4 billion ($5.6 billion) of cash.

    Ofwat said it was in “ongoing discussions” with Thames Water “on the need for a robust and credible plan to turn the business around.”

    “We will continue to focus on protecting customers’ interests,” it added.

    Government ministers, including representatives from the UK Treasury and the environment department, Defra, are holding emergency talks with Ofwat over Thames Water’s future, according to UK media reports.

    One possibility would be to place the company into a special administration regime that effectively takes the firm into temporary public ownership. Sky News was first to report the discussions.

    A government spokesperson told CNN: “This is a matter for the company and its shareholders. We prepare for a range of scenarios across our regulated industries — including water — as any responsible government would.”

    The spokesperson added that the UK water sector “as a whole is financially resilient.”

    Thames Water says about 24% of the water it supplies to customers is lost through leakage.

    The company’s single biggest shareholder is the Ontario Municipal Employees Retirement System, which holds a stake of around 32%. The Universities Superannuation Scheme, a pension fund for the academic staff of UK universities, owns nearly 20%.

    Other large investors include the Chinese and Abu Dhabi sovereign wealth funds, as well as British Columbia Investment Management Corporation, which invests on behalf of public sector workers.

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  • Prince William believes you can have zero homelessness and he’s using Finland as a case study | CNN

    Prince William believes you can have zero homelessness and he’s using Finland as a case study | CNN

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    London
    CNN
     — 

    Prince William believes you can have zero homelessness and he’s using Finland as a case study.

    The Prince of Wales is launching a five-year, locally led plan in six flagship locations around the UK that will demonstrate it is possible to end homelessness, Kensington Palace announced on Monday.

    The program, “Homewards,” will bring together “an unprecedented network of organisations and individuals,” tapping into their collective expertise to “create and deliver a tailored plan to prevent homelessness in their areas,” the palace said.

    It will provide up to £500,000 ($637,000) of flexible seed funding in each of the six locations – which will be announced later this week – to support projects, and findings from the program will be used to create a model that can be used elsewhere across the UK and internationally.

    “In a modern and progressive society, everyone should have a safe and secure home, be treated with dignity and given the support they need,” the Prince of Wales said in a statement Monday, marking the launch of his first big initiative as heir to the throne.

    “Through Homewards, I want to make this a reality and over the next five years, give people across the UK hope that homelessness can be prevented when we collaborate.”

    The project draws inspiration from Finland’s “Housing First” policy which unconditionally offers rental homes with contracts to people experiencing homelessness, as well as support if needed and wanted.

    Finland’s successful homelessness policy “has been the leading example for a number of years,” Matt Downie, CEO of homeless charity Crisis told reporters. Its collaborative approach and “the whole of society committing for the long term” is key to its success, added a spokesperson for the Royal Foundation, the charity established by the Prince and Princess of Wales.

    Similarly, William said in an interview with British newspaper The Sunday Times last week that he hopes to bring “all the wonderful people and pieces together of the puzzle.”

    “And from that, we can then get other councils in other parts of the country to copy,” he added. “It’s about that momentum. So you go, ‘Right, we can fix this and we will fix this.’”

    William was careful to stress that he wasn’t trying to interfere with government policy, saying that his plan “is an additive to what is already being done.”

    His initiative will also focus on reframing the issue and improving understanding among the general public.

    More than 300,000 people in the UK are affected by homelessness, research from the Royal Foundation found, though the number is likely to be larger given the number of people sofa surfing, living in cars, or staying in hostels or other types of temporary accommodation.

    Over the next two days, William will travel to each of the six locations to formally kickstart the program.

    William has long used his platform to spotlight homelessness, ever since his mother, Princess Diana, first took him to homeless shelters as a child.

    “I was 11 when I first visited a homeless shelter with my mother, who in her own inimitable style was determined to shine a light on an overlooked, misunderstood problem,” he wrote in a piece last year published in The Big Issue, a magazine which offers employment opportunities to people in poverty.

    He took up Princess Diana’s patronage of the homelessness charity Centrepoint in 2005, spent a night sleeping rough in temperatures that reached -4 degrees Celsius (24.8 degrees Fahrenheit) four years later, and spent two days volunteering with Centrepoint, helping young people directly with its accommodation services.

    Last year, William attempted to go undercover on the streets of London and sell The Big Issue to “experience the other side and see what it was like to be a Big Issue vendor,” he wrote in the magazine afterwards.

    Sign up for CNN’s Royal News, a weekly dispatch bringing you the inside track on the royal family, what they are up to in public and what’s happening behind palace walls.

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  • Celebrate Juneteenth by promoting Black health, wealth and joy | CNN

    Celebrate Juneteenth by promoting Black health, wealth and joy | CNN

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    CNN
     — 

    June 19, 2023 is the third annual observance of Juneteenth. The federal holiday commemorates June 19, 1865, when the enslaved people in Galveston, Texas, learned of their emancipation two years after President Lincoln signed the Emancipation Proclamation.

    Although Juneteenth has recently become more widely recognized, the date has long been a deeply spiritual time of remembrance and celebration for the Black community.

    Across the country, African Americans have rejoiced with fireworks and cookouts, sipping red drinks – a nod to ancestors’ bloodshed and endurance.

    “We know the horrors that we went through,” explained Kleaver Cruz, writer of the forthcoming book “The Black Joy Project” and creator of a digital initiative of the same name. “It’s always concurrent: the joy and the pain. We use one to get through the other.”

    On a particularly joyous note, this June 19, CNN and OWN (both properties of Warner Bros. Discovery) will simulcast Juneteenth: A Global Celebration for Freedom at 8 PM Eastern time. The concert will feature artists across multiple genres including Charlie Wilson, Miguel, Kirk Franklin, Nelly, SWV, Davido, Coi Leray, Jodeci and Mike Phillips. CNN will kick off pre-show coverage at 7 PM Eastern time, highlighting Black advocates, trailblazers, and creators.

    “We get to celebrate our freedoms; we get to celebrate the dismantling of things and lean into what we want in the future,” Cruz said of Juneteenth observance. “We want more of that space and less of the one that harms us.”

    The Black community still struggles with pain and inequity. Impact Your World has gathered ways you can help reject the pathology of racism and thoughtfully celebrate Juneteenth through non-profits that support Black health, wealth, joy, and overall empowerment. You can donate to those charities here.

    For Black Americans, the end of slavery was just the beginning of a 158-year quest for equality. Along the way, the cumulative effect of institutional and systemic racism fomented stark disparities in income, health, education, and opportunity.

    “Those that came before us were physically free but were unable to earn livable wages or receive an education without its share of defeating challenges,” said Marsha Barnes, Founder of The Finance Bar.

    Data collected by the Board of Governors of the Federal Reserve System shows that in the fourth quarter of 2022, the average Black household’s net worth was about one-fourth that of the average White household.

    “Taking the time to address the racial wealth gap highlights many of the roadblocks we as Black Americans currently face,” explained Barnes, a certified financial therapist. She sees the well-documented connection between financial literacy and financial wellness as a key to enhancing wealth in the Black community.

    “We still are at a disadvantage, but it’s important we become comfortable with having to learn while playing the game,” Barnes told CNN.

    HomeFree-USA is a non-profit aiming to close the racial wealth gap by improving financial education, homeownership, and opportunities. Their Center for Financial Advancement (CFA) recruits, trains, and places Historically Black College and University students into internships and careers with mortgage and real estate companies. The goal is to enhance diversity in the financial sector, expose students to credit and money management and help them become savvy consumers and future homeowners.

    The African American Alliance for Homeownership is a non-profit counseling agency that helps families obtain, retain, maintain, and sustain their homes. The organization offers HUD-certified counselors who support first-time homebuyers and foreclosure prevention. The group recently expanded its services to help homeowners with estate plans, resource navigation, home repairs, and energy-efficiency upgrades.

    Former NFL Player Warrick Dunn started Warrick Dunn Charities in 1997 to help single parents buy homes by providing $5,000 down payments and home furnishings.

    “The more I learned, we wanted to get into the business of giving people the potential to break their cycle of poverty,” Dunn explained in a 2021 interview with CNN.

    The non-profit has expanded its priorities to include financial literacy, health and wellness, education attainment, workforce development, and entrepreneurship support.

    The National Urban League is committed to the advancement of African Americans through economic empowerment, equality, and social justice. The organization champions education, job training, workforce development, and civic engagement through community and national initiatives.

    The legacy of racism in America continues to fuel health and healthcare inequities for Black people.

    “We’re seeing diseases that, when I was in medical school, I thought to be diseases that would start to develop in people in their fifties, sixties, and seventies. I’m seeing these diseases sometimes in teenage years,” said Dr. Barbara Joy Jones, an Atlanta-based family medicine physician.

    According to the CDC, five health conditions particularly affect the Black community at higher rates: cardiovascular disease, human immunodeficiency virus (HIV), metabolic syndrome, colon cancer, and mental health conditions.

    “I consider hypertension, Diabetes, and obesity the triad,” said Jones.

    The leading contributor to that triad is what you eat.

    “Diet is 80% of health, and just access to quality food and education about food has been very hard,” Jones explained.

    “When you go back and look at slavery, the foods we had to eat were the last scraps, so through the passing down of culture, you’re eating foods that are not the healthiest because it was simply for survival,” said Jones.

    According to Feeding America, eight of the ten US counties with the highest food insecurity rates are at least 60% Black and one in every four Black American children is affected by hunger.

    Addressing food insecurity, nutrition education, and better food access can make a difference.

    Feeding America runs a network of food banks in those mostly Black hard-hit counties.

    Share Our Strength runs a program called Cooking Matters offering cooking classes, grocery store tours, and digital content to help marginalized families across the country shop and cook with an eye towards health and budget.

    The African American Diabetes Association uses targeted outreach projects to help Black people prevent or delay type 2 diabetes.

    Despite progress over the years, racism continues to impact the mental health of African American people.

    “The stress and microaggressions that happen daily for a person of color in the work environment and everyday life add up, and unmitigated stress can lead to disease,” Jones told CNN.

    The Black Mental Health Alliance and the Trevor Project, provide training and networks of mental health providers specifically supportive of the Black and Black LGBTQ communities.

    In 2019, the CDC found that Black people comprised 41% of the new HIV infections in the US. The Black AIDS Institute was founded in 1999 to mobilize and educate Black Americans about HIV/AIDS treatment and care. The Black AIDS Institute advances research, support groups, and education and runs a clinic catering to BIPOC and underserved communities.

    As recently as the 1990’s, unethical medical research was conducted on Black Americans. The Tuskegee Study is one of the most widely recognized examples of the racist practice that led many Black people to distrust the healthcare system and avoid doctors altogether.

    Beyond investing in cultural sensitivity training and prioritizing preventative care, Jones said, “For anti-doctor people, find someone that looks like you; representation matters.”

    “Half of the getting to know your part of medicine is to know why psychosocial and economically you are where you are, and having a doctor that looks like you can support that.”

    Only about 5.7% of US physicians identify as Black or African American, according to the Association of American Medical Colleges.

    The White Coats Black Doctors Foundation is working to increase diversity in the medical profession, supporting educational preparation to become a doctor and helping offset the costs associated with applying and transitioning to residencies.

    Janice Lloyd of Annapolis, Maryland watches a Juneteenth parade in 2021.

    Black joy has been essential for survival, resistance, and self-development for centuries. But these days, it’s often exploited and misunderstood.

    “I see the ways that Black joy at this moment is being commercialized or co-opted to make it feel like it’s Black people smiling,” lamented Cruz. “It’s much, much deeper than that.”

    Cruz launched the Black Joy Project as a photo essay on social media in 2015 following the deaths of Michael Brown and Sandra Bland to help the Black community process its collective pain.

    “I posted it on Facebook in the stream of consciousness and said, ‘Let us bombard the internet that joy is important too, and as people are sharing these traumatic videos, we have to make space for joy.’ And it was an invitation for anybody else that wanted to do that.”

    Enslaved Black people knew they weren’t free but still hoped their future generations would be. That empowering optimism gave them the will to press forward, no matter the circumstance.

    “This (joy) is just a continuation of those practices,” Cruz said. “Joy is intrinsic. It’s something that can’t be taken from us because it comes within us; it’s always ours to have.”

    Juneteenth is a celebration of freedom, culture, and history, and it’s important to uplift non-profits that positively nourish the arts, music, and all the things that foster Black joy.

    The Robey Theatre Company was founded in 1994 by actors Danny Glover and Ben Guillory to tell the complex stories of the Black experience. The theater showcases and develops up-and-coming actors and playwrights to sustain Black theater.

    The Debbie Allen Dance Academy uses dance, theater, and performance to enrich, inspire and transform students’ lives.

    As some states are moving to block Critical Race Theory and Black history from public education, the Legacy Museum: From Enslavement to Mass Incarceration gives visitors an interactive history lesson on the harsh repercussions of slavery and systemic racism in the US. The immersive exhibition carries visitors through the transatlantic slave trade up to the current mass incarceration of Black people. The museum occupies a site in Montgomery, Alabama where enslaved Black people were historically auctioned off.

    “If we’re being serious about Black joy, that means we’re being serious about Black lives, period,” Cruz concluded.

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