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Tag: The Biden administration

  • Jill Biden announces $500 million government plan focusing on women’s health at Clinton Global Initiative

    Jill Biden announces $500 million government plan focusing on women’s health at Clinton Global Initiative

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    First lady Jill Biden on Monday unveiled a new set of actions to address health inequities faced by women in the United States, plans that include spending at least $500 million annually on women’s health research.

    Jill Biden made the announcement at this year’s Clinton Global Initiative annual meeting in New York, moments before the organization honored President Joe Biden with the 2024 Clinton Global Citizen Award.

    “He’s provided a playbook for getting things done,” former President Bill Clinton, said as he presented the award. “We honor him today, not just for what he’s accomplished, but for the way he has done it.”

    President Biden, standing next to his wife, former Secretary of State Hillary Clinton and Clinton Foundation Vice Chair Chelsea Clinton, joked, “This is what you call being trapped.”

    In his short remarks, he then called Jill Biden’s announcement one of the most substantial of his administration.

    The additional government spending will mainly come from the Department of Defense, which provides medical care to more than 230,000 active duty military women and nearly 2 million military retirees, as well as their family members. The research will focus on why these women experience endocrine, hematological and other immunity-related disorders twice as often as men.

    “Women are really hungry for this kind of information,” Jill Biden said. “We don’t have the answers.”

    Another change will take effect next week, with a new policy that includes women’s health at every step of the research funded by Congressionally Directed Medical Research Programs, which funded 751 grants last year to study Alzheimer’s disease, multiple sclerosis, lupus, orthopedic and musculoskeletal injuries, and various cancers.

    The commitment was among the largest of the more than 100 expected at the two-day meeting of political, business and philanthropic leaders gathering to address some of the world’s most pressing issues. The Clintons have set this year’s theme as “What’s Working,” a way to look for potential solutions and effective programs in tumultuous times.

    “You don’t look at a problem and say, ‘That’s impossible,” Bill Clinton said in his opening remarks. “You don’t just throw up your hands. You roll up your sleeves.”

    An example of that strategy came from the announcement that a wide-ranging group of 15 nonprofits, humanitarian aid organizations and other funders will join forces to address the humanitarian crisis in Sudan following more than a year of conflict.

    The Coalition for Mutual Aid in Sudan – which includes The Bill & Melinda Gates Foundation, Global Giving, Global Fund for Women, and The Unitarian Universalist Service Committee — will donate at least $2 million to mutual aid groups in the country by the end of the year. It also pledged to raise another $4.5 million for those groups within the next two years.

    Patricia McIlreavy, president of the Center for Disaster Philanthropy, which has been representing the coalition, said that, while much more aid is needed, the collaboration and problem-solving of the group is an important step forward.

    “It gets us started,” McIlreavy told The Associated Press. “And it models the behavior you want to see from others. If you wait until it’s the perfect opportunity, you’ve missed many of the opportunities that were good enough.”

    World Food Program director Cindy McCain said earlier this month that “ Sudan’s nearly a forgotten crisis ” and that 25 million people there already face acute hunger. Last week, the top United Nations humanitarian official said fighting is escalating in the conflict that began in April 2023 when long-simmering tensions between Sudan’s military and paramilitary leaders broke out in the capital Khartoum and spread to other regions. The U.N. says more than 14,000 people have been killed and 33,000 injured.

    “With ongoing impediments to a large-scale international aid response, Sudanese community groups have become the primary frontline responders and are currently the most effective means of reaching millions on the brink of starvation,” Patricia McIlreavy, president of the Center for Disaster Philanthropy, said in a prepared statement on behalf of the coalition. “With so many lives on the line, the imperative to support local aid efforts in Sudan has never been more urgent.”

    The Center for Disaster Philanthropy says more than 12 million people have been forced from their homes in Sudan, creating what is now the world’s largest displacement and hunger crisis. The danger from the conflict has prevented most international aid agencies from delivering supplies to those in need.

    Greg Milne, the Clinton Global Initiative CEO who convened a panel in April to raise awareness and support for the Sudanese people, said the new coalition is an example of what bringing organizations from varied sectors can do.

    “We know strong, diverse partnerships can help address often overlooked and even dire challenges, and develop unexpected and innovative solutions,” he said.

    Philanthropic leaders, including Bill Gates, World Central Kitchen founder Jose Andres, Open Society Foundations President Binaifer Nowrojee, and Rockefeller Foundation President Raj Shah will share information about their work during CGI, as will Prince Harry, who will discuss the launch of The Archewell Foundation Parents’ Network, which supports parents of children harmed online. In his Tuesday appearance, the Duke of Sussex will also address his work with the World Health Organization and others to reduce violence against children, an issue he and his wife Meghan outlined on a recent trip to Colombia.

    Brazilian President Luiz Inacio Lula da Silva, Barbados Prime Minister Mia Mottley, Kosovo President Vjosa Osmani Sadriu, and Latvian President Edgars Rinkevics are set to address the conference, as are CEOs from Pfizer, Mastercard, IKEA, Pinterest, Sanofi and Chobani.

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    Glenn Gamboa, The Associated Press

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  • Treasury Secretary Yellen says ending Biden IRA tax incentives would be ‘historic mistake’ for states like North Carolina

    Treasury Secretary Yellen says ending Biden IRA tax incentives would be ‘historic mistake’ for states like North Carolina

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    Treasury Secretary Janet Yellen is warning voters in the battleground state of North Carolina that they could lose jobs if Republicans weaken a signature Biden administration law that encourages investments in manufacturing and clean energy.

    Yellen says that Republican-dominated states like North Carolina are greatly benefiting from tax incentives under the 2022 Inflation Reduction Act and that eliminating them would be a “historic mistake,” according to a draft of a speech she will give Thursday at a community college in Raleigh. The Treasury Department released the remarks ahead of the address.

    North Carolina has emerged as a key battleground this election cycle between Republican former President Donald Trump and Democratic Vice President Kamala Harris, where Trump ultimately won North Carolina in the 2020 presidential election.

    Yellen says Treasury data shows that 90,000 North Carolina households claimed more than $100 million in residential clean energy credits and $60 million in energy efficiency credits.

    “Rolling them back could raise costs for working families at a moment when it’s imperative that we continue to take action to lower prices,” Yellen says in her speech. “It could jeopardize the significant investments in manufacturing we’re seeing here and across the country, along with the jobs that come with them, many of which don’t require a college degree. And it could give a leg-up to China and other countries that are also investing to compete in these critical industries.”

    “As we see clearly here in North Carolina, this would be a historic mistake,” she says.

    Some Republicans have called on their leaders to reconsider repealing IRA energy tax incentives.

    A group of 18 House Republicans in August called on House Speaker Mike Johnson to reconsider efforts to eliminate them.

    “Prematurely repealing energy tax credits, particularly those which were used to justify investments that already broke ground, would undermine private investments and stop development that is already ongoing,” the letter reads. “A full repeal would create a worst-case scenario where we would have spent billions of taxpayer dollars and received next to nothing in return.”

    But Rep. Chip Roy, R-Texas, tweeted on social media site X that the lawmakers who signed the letter want to “preserve so-called ‘green’ handouts to Democrats’ corporate cronies.”

    “The GOP must ignore K-Street lobbyists and refuse to fund the climate corporate cronies destroying our country,” he said.

    The Republican case against the Inflation Reduction Act hinges on the argument that the spending is wasteful and benefits China.

    IRS data released in August states that 3.4 million American families have claimed $8.4 billion in residential clean energy and home energy efficiency tax credits in 2023 — mostly towards solar panels and battery storage.

    Recommended reading:
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    Read the stories.

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    Fatima Hussein, The Associated Press

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  • Donald Trump admits EV flip-flop was a quid-pro-quo to secure Elon Musk’s support: ‘I have no choice’

    Donald Trump admits EV flip-flop was a quid-pro-quo to secure Elon Musk’s support: ‘I have no choice’

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    Republican presidential nominee Donald Trump admitted to tempering his strident opposition to electric vehicles in order to gain the endorsement of billionaire Elon Musk, the CEO of Tesla.

    The former president, well known for the transactional nature of his politics, has championed an economic agenda relying heavily on cheap, plentiful energy through fracking and mining of U.S. fossil fuel deposits that drive climate change. Tesla’s stated mission however is to accelerate the world’s transition to sustainable energy.

    Speaking to supporters in Atlanta, Trump now said EVs aren’t all that bad, adding they could continue being a small slice of the U.S. car market should he retake the White House. 

    “I’m for electric cars. I have to be, you know, because Elon Musk endorsed me very strongly,” he said in comments shared widely throughout Musk’s fanbase by accounts like John Stringer’s Tesla Owners Silicon Valley and blogsite Teslarati. “So I have no choice.”

    Last month the New York real estate mogul pledged to roll back President Biden’s EV subsidies, which he labelled a “green new scam,” on day one of a second Trump administration.

    Speaking to Maria Bartiromo on Thursday, Trump explained all the electric cars in the future will be made in China, since the United States doesn’t have the mineral resources of its rival, the world market leader in processing battery-grade lithium.

    “They don’t go far [and] they cost too much,” he said, referring to EVs. “I like Tesla, but you know what? It’s limited.”

    His vice presidential pick, J.D. Vance, meanwhile has pushed a bill called the “Drive American Act” that would repeal Biden’s $7,500 federal tax credit for EVs and hand them instead to conventional combustion engine cars.

    This has put Musk on the backfoot, forcing the EV champion to claim late last month Trump’s hostility to EVs would harm his competition more than it would Tesla itself.

    Musk’s brand sells roughly as many EVs in the U.S. as all its other competitors combined. Along with China’s BYD, it is one of the only two carmakers in the world to build EVs profitably at scale.

    Consumers fleeing brand in Europe

    Nevertheless, Elon Musk’s brand of right-wing politics, increasingly ardent since he acquired Twitter at the end of October 2022, has fractured the Tesla community into those that support its mission to phase out fossil fuels and tech enthusiasts that back Musk first and foremost.

    Anecdotal and empirical evidence suggests this has contributed to a small but growing number of customers abandoning the brand for competitors like Rivian, especially in Tesla’s own stronghold of California

    Europe, whose EV market is 60% larger than the U.S., has seen a plunge in Tesla demand as the tycoon embraced the continent’s far right, an ally of Trump, who is highly controversial on the continent. As president, Trump cozied up to Russia’s Vladimir Putin while branding European Union as America’s real “foe” in the region.

    Musk’s engagement with political fringe parties like the AfD, under official observation by Germany’s domestic intelligence service as a danger to democracy, has soured support for the brand in an EV-friendly market where consumers are already spoiled for choice.

    On Monday, registration data published for Germany, the UK and France—the three largest EV markets in Europe—showed Tesla sales in the first seven months drop 41%, 13% and 28%, respectively, over the previous year’s period.

    By comparison the most recent continent-wide data showed EV sales edged 1.6% higher in the first half of this year, implying all other brands dramatically outperformed Tesla.

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    Christiaan Hetzner

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  • Biden administration cracks down on airline seating fees that can run $200 a trip

    Biden administration cracks down on airline seating fees that can run $200 a trip

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    The U.S. Department of Transportation is proposing a new rule that would ban airlines from charging parents more to sit with their young children.

    Under the proposal, released Thursday, U.S. and foreign carriers would be required to seat children 13 or younger next to their parent or accompanying adult for free.

    If adjacent seats aren’t available when a parent books a flight, airlines would be required to let families choose between a full refund, or waiting to see if a seat opens up. If seats don’t become available before other passengers begin boarding, airlines must give families the option to rebook for free on the next flight with available adjacent seating.

    The Biden administration estimates the rule could save a family of four as much as $200 in seat fees for a round trip.

    “Flying with children is already complicated enough without having to worry about that,” U.S. Transportation Secretary Pete Buttigieg said.

    Buttigieg pointed out that four airlines – Alaska, American, Frontier and JetBlue – already guarantee that children 13 and under can sit next to an accompanying adult for free.

    Congress authorized the Department of Transportation to propose a rule banning family seating fees as part of the Federal Aviation Administration Reauthorization Act, which President Joe Biden signed in May.

    The legislation also raises penalties for airlines that violate consumer laws and requires the Transportation Department to publish a “dashboard” so consumers can compare seat sizes on different airlines.

    The department will take comments on the proposed family seating rule for the next 60 days before it crafts a final rule.

    Airlines have been pushing back against the Biden administration’s campaign to eliminate what it calls “junk fees.”

    In April, the administration issued a final rule requiring airlines to automatically issue cash refunds for canceled or delayed flights and to better disclose fees for baggage or cancellations.

    Airlines sued and earlier this week, a three-judge panel on the 5th U.S. Circuit Court of Appeals temporarily blocked that rule from taking effect, ruling that it “likely exceeds” the agency’s authority. The judges granted a request by airlines to halt the rule while their lawsuit plays out.

    Asked whether the family seating rule could face the same fate, Buttigieg noted that the Transportation Department also has the backing of Congress, which authorized the rule.

    “Any rule we put forward, we are confident it is well-founded in our authorities,” Buttigieg said during a conference call to discuss the family seating rule.

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    Dee-Ann Durbin, The Associated Press

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  • Elon Musk says a Trump presidency ‘would be devastating’ to Tesla’s competitors

    Elon Musk says a Trump presidency ‘would be devastating’ to Tesla’s competitors

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    Tesla CEO Elon Musk is firmly in former President Donald Trump’s corner politically, but what a potential Trump Administration could mean for the electric vehicle maker that pays Musk billions is unclear—even to Musk himself.

    During a call with financial analysts on Tuesday, Wells Fargo director Colin Langan asked Musk to explain the impact of a Trump win and the potential wipeout of a federal $7,500 tax credit for electric vehicles.

    “I guess there would be some impact,” said Musk. “It would be devastating for our competitors, and it would hurt Tesla slightly.”

    The CEO also noted that because Trump has promised heavy tariffs on vehicles produced in Mexico, Tesla would pull back on investing in a factory it had planned to open in Monterrey in 2026. “If that’s going to be the case, we kind of need to see how things play out politically,” he said. Yesterday, Musk denied reports that he would pump $45 million per month into Trump’s campaign.

    Speaking on CNBC before the earnings call, Wedbush Securities tech analyst Dan Ives said that a Trump presidency could be negative for the overall EV market because Trump could eliminate the Inflation Reduction Act and with it the tax credits for EVs and certain plug-in hybrids. That would mean an administration under Kamala Harris, the presumptive Democratic party nominee, could be a positive for the EV industry.

    Yet, Trump might be better for the regulatory agenda needed to promote full-self driving and autonomy, which is a key component of Tesla’s growth strategy, said Ives.

    “Musk has been background noise under the Biden Administration and in a Trump administration, is that something that will be more front and center?” said Ives. “That’s why I would say Tesla is part of that Trump trade.”

    Musk dismissed the notion that regulators might balk at a fleet of Tesla-made, self-driving robotaxis without steering wheels and pedals. An analyst asked Musk to explain why regulatory risk wasn’t an issue for Tesla, when General Motors had paused production of its Origin vehicle that doesn’t have a steering wheel, in favor of its Chevrolet Bolt, in part because of regulation. The Cruise Origin autonomous vehicle would need approval from the National Highway Traffic Safety Administration because it doesn’t have traditional manual controls like a steering wheel and pedals, which are required by current safety regulations, and were written for cars with human drivers and not fully autonomous vehicles.

    “The main reason with switching from the Origin to the Bolt is we extinguish the regulatory risk,” GM CEO Mary Barra said, according to a Reuters report.

    “The real reason they canceled it is because GM can’t make it work,” said Musk, adding that the automaker’s technology “is not up to par.” He said blaming regulators was “misleading.”

    Jim Cain, an executive director at GM, told Fortune Musk is flat wrong.

    “All of those statements are categorically false,” said Cain, who listened to Musk’s comments during the earnings call. “The Origin vehicle faced a lot of hurdles getting certified because it doesn’t have a steering wheel, it doesn’t have a brake pedal, and it has a unique seating layout that requires a federal motor vehicle safety waiver—full stop.”

    Cain said Cruise technology improves every day because of the way it leverages its data set with AI. “And so far, they have driven more than 5 million fully autonomous miles and Tesla has driven exactly zero.”

    Musk has an unshakeable faith in Tesla’s power to “solve autonomy,” which he reiterated Tuesday, even as Tesla reported financial results showing net profits dropped 45%, marking its second quarter of sluggish growth and fourth straight quarter of falling quarterly earnings. Car industry data also showed that Tesla continues to lose popularity in California, where sales fell 24% in the second quarter. Meanwhile, Trump has pledged to end what he referred to as the “green new scam,” promising to abolish “the electric-vehicle mandate on day one.”

    According to Ives, if autonomy is the strategic future of Tesla, it might be more beneficial for Tesla to have less regulation, which is likelier under a Trump presidency versus a Harris presidency.

    “The cherry on top of what could be the sundae” for investors is how the company will impact the robotics market and its efforts on full-self driving and autonomy, said Ives. Ultimately, that’s how the company could potentially reach a $1 trillion or even $2 trillion valuation, he added.

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    Amanda Gerut

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  • Billionaire investor Ray Dalio refuses to endorse Biden or Trump

    Billionaire investor Ray Dalio refuses to endorse Biden or Trump

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    If you’re one of the millions of Americans wondering how the country wound up stuck between a twice-impeached convicted felon and an increasingly frail incumbent for its next President, Ray Dalio can sympathize. 

    The billionaire founder of Bridgewater, the world’s fourth largest hedge fund, said the unfortunate reality is that he, along with about half of the country, wished there was a realistic alternative to Donald Trump and Joe Biden.

    “I feel like I am faced with the choice between a strong, unethical, almost fascist Republican Party and a frail, untruthful and enigmatic Democratic Party,” he wrote in a column for Time he simultaneously posted on LinkedIn. “As things now stand, there is no good presidential contender and no good party for me to choose from.”

    The speculator, who handed over the reins at Bridgewater in 2022, had told Fortune CEO Alan Murray prior to the first primary contest in Iowa that he was already dreading a potential rematch of Trump vs Biden. 

    Since Dalio wrote that he respected and liked Biden, he turned his crosshairs instead towards leading Democrats who sought to hide the President’s “weak and rapidly declining condition” from the American public.

    By pretending the 82-year-old had the constitution to face another four years of the most demanding and important job around when it was clear the emperor had no clothes, the party undermined trust. 

    “That is obviously ridiculous and an insult to people’s intelligence,” Dalio wrote, adding claims that Biden could still function most hours of the day only lead to a “terrible loss of confidence in its honesty and judgement”.

    Major Democratic donors, including the Disney heiress Abigail Disney, have signaled their unwillingness to fund his re-election campaign any further, comparing Biden to an elderly parent whose car keys need to be taken away from them.

    ‘Four months left’ to prevent a sweep in November

    On Tuesday, Michael Bennet emerged as the first Senate Democrat to state publicly that Biden faced losing to his opponent in November.

    Speaking to CNN, the Colorado legislator even went a step further, arguing the President’s continued candidacy could spark a landslide victory for Trump’s party and a clean sweep of the House, Senate and Presidency.

    “We have four months to figure out how we’re going to save the country from Donald Trump,” he told the cable news network. “The stakes could not be higher.” 

    In a sign of how conflicted the party is, Bennet acknowledged he only came forward after his comments—made privately to his peers—had been leaked to the press.

    In Dalio’s column, the Bridgewater founder concluded the Democrats now had only three options left going forward, none of which were particularly appealing. 

    They could either unite behind Biden in the hopes of white-knuckling it to a re-election victory and then tackling the problem afterward (“bait and switch”), hand Vice President Kamala Harris the nomination on a silver platter and drop her into the race (“coronation”), or organize a shortened contest among leading contenders to take Biden’s stead (“mini-primary”).

    While the latter was Dalio’s preferred option, since it would offer Americans a choice as to who should lead the ticket, he acknowledged it would likely harm their chances of winning in November.

    “I am still hoping for honest, smart, strong and ideally moderate-bipartisan Democrats (or Republicans) to step forward,” he wrote.

    Until then, it looks as if neither Trump nor Biden will earn his vote—or his donation checks.

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    Christiaan Hetzner

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  • ‘Weekend at Bernie’s’ or ‘One Flew Over the Cuckoo’s Nest’——Anthony Scaramucci breaks down Trump vs. Biden in 2024

    ‘Weekend at Bernie’s’ or ‘One Flew Over the Cuckoo’s Nest’——Anthony Scaramucci breaks down Trump vs. Biden in 2024

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    Ex-White House communications director Anthony Scaramucci and former presidential candidate Andrew Yang were guests at the Fortune Future of Finance conference on Thursday. The subject of the 2024 election came up. When asked about the impact that a return of former President Donald Trump would have on the business landscape if he were reelected, Scaramucci was blunt: “terrible.”

    “He would be terrible for the economy and terrible for business,” said the founder and managing partner of SkyBridge Capital. The economy has been predictable, and favorable for businesses, because of constitutional separation of powers, Scaramucci explained. Trump wants to obliterate those separations and embrace people and functions that would allow him to have total control. So-called “unitary executive power” would give the president totalitarian powers over the executive branch of government with exclusive rights to shape and enforce laws. It would make Trump “uber powerful,” said Scaramucci, and throughout history, he said, that has been catastrophic for the economy wherever it has happened.

    “It’s a disaster for the economy, a disaster for the world, and a disaster for your business,” he said, adding that Trump would be “an orange wrecking ball for this society.”

    Similarly, former Democratic presidential candidate Andrew Yang said Trump would “be a catastrophe” for businesses if he were elected president a second time.

    “He’s learned from his mistakes last time, which was hiring responsible adults” who tamped down Trump’s policy instincts, said Yang, co-chair of the Forward Party, a centrist political party he founded in 2021. Yet, Yang warned that if the election were held today, Trump would certainly win. The only question in his mind is whether something changes in the next six months in swing states, where Yang said Biden is underperforming relative to Trump, despite spending Biden’s considerable war chest.

    Scaramucci noted that there are currently 40 Republicans who are publicly against Trump’s reelection bid, including former Vice President Mike Pence. If dozens of people who worked at a company came together and said a product or company was awful and could kill you, he said, people would listen. Yet in this case it’s a mystery that Trump has garnered such steadfast support, he said.

    Scaramucci only worked at the White House for 11 days, from July 21 to July 31 in 2017, but related one tale about his time in the Oval Office. Former Speaker of the U.S. House of Representatives Paul Ryan and Trump were arguing and Trump was pointing his finger at Ryan saying, “You work for me. You work for me,” Scaramucci recalled. Ryan told Trump, “I don’t work for you.” Trump then looked to Scaramucci to confirm as if asking, “Is that right? He doesn’t work for me?” Scaramucci remembered. “And Trump doesn’t like that,” Scaramucci added, making a point about Trump’s interest in autocratic control.

    Scaramucci joked about how his short tenure at the White House has evolved into its own indicator of time. For instance, the shortest-serving prime minister in British history, Liz Truss, lasted 45 days from Sept. 6, 2022 to Oct. 20, 2022. Or, she lasted the equivalent of “4.1 Scaramuccis,” he said. “People are very sensitive,” Scaramucci said; Truss “got very upset.” 

    Joking aside, Scaramucci warned that there will be two films playing at your local cinema on Election Day. Those films are: Weekend at Bernie’s or One Flew Over the Cuckoo’s Nest, he said.

    “You can either have an elderly guy that is somewhat forgetful, or a lunatic who needs a lobotomy.”

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    Amanda Gerut

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  • Chinese-backed crypto firm must sell Wyoming land plot and get rid of equipment possibly capable of ‘espionage activities,’ says President Biden

    Chinese-backed crypto firm must sell Wyoming land plot and get rid of equipment possibly capable of ‘espionage activities,’ says President Biden

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    President Joe Biden on Monday issued an order blocking a Chinese-backed cryptocurrency mining firm from owning land near a Wyoming nuclear missile base, calling its proximity to the base a “national security risk.”

    The order forces the divestment of property operated as a crypto mining facility near the Francis E. Warren Air Force Base. MineOne Partners Ltd., a firm partly backed by Chinese nationals, and its affiliates are also required to remove certain equipment on the site.

    This comes as the U.S. is slated on Tuesday to issue major new tariffs on electric vehicles, semiconductors, solar equipment and medical supplies imported from China, according to a U.S. official and another person familiar with the plan.

    And with election season in full swing, both Biden and his presumptive Republican challenger, former President Donald Trump, have told voters that they’ll be tough on China, the world’s second-largest economy after the United States and an emerging geopolitical rival.

    The Monday divestment order was made in coordination with the U.S. Committee on Foreign Investment in the United States — a little-known but powerful government committee tasked with investigating corporate deals for national security concerns that holds power to force companies to change ownership structures or divest completely from the U.S.

    A 2018 law granted CFIUS the authority to review real estate transactions near sensitive sites across the U.S., including F.E. Warren Air Force Base.

    MineOne purchased the land that is within one mile of the Air Force base in Cheyenne in 2022, and according to CFIUS, the purchase was not reported to the committee as required until after the panel received a public tip.

    The order was vague about the specific national security concerns, with the Treasury Department saying only that there were issues with “specialized and foreign-sourced equipment potentially capable of facilitating surveillance and espionage activities” that “presented a significant national security risk.”

    A representative from the firm did not respond to an Associated Press request for comment.

    Treasury Secretary Janet Yellen, who serves as the chairperson of CFIUS, said the role of the committee is “to ensure that foreign investment does not undermine our national security, particularly as it relates to transactions that present risk to sensitive U.S. military installations as well as those involving specialized equipment and technologies.”

    The committee is made up of members from the State, Justice, Energy and Commerce Departments among others, which investigates national security risks from foreign investments in American firms.

    CFIUS directed the sale of the property within 120 days, and that within 90 days the company remove all structures and equipment on the site.

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    Fatima Hussein, Zeke Miller, The Associated Press

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  • ‘Oracle of Omaha’ Warren Buffett predicts ‘higher taxes are likely’ since the national debt won’t pay for itself

    ‘Oracle of Omaha’ Warren Buffett predicts ‘higher taxes are likely’ since the national debt won’t pay for itself

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    The U.S. government may be coming to take a larger bite out of corporate profits, and Berkshire Hathaway chairman Warren Buffett wants to be prepared.

    When asked at Saturday’s annual shareholder meeting why he sold 115 million shares of Apple over the past quarter, the ‘Oracle of Omaha’ predicted companies like his could find themselves handing more of their earnings to Uncle Sam. And he for one is fine with the idea. 

    “With present fiscal policies, I think something has to give. And I think higher taxes are quite likely,” he said, lecturing other companies for constantly scrutinizing the tax code for the smallest loopholes that can reduce their tax burden.

    Under the Trump administration, the statutory rate for corporations was reduced to 21% in 2017 from a previous 35% and Buffett recalled it has been much higher in the past. 

    “They may decide that someday they don’t want the fiscal deficit to be this large, because that has some important consequences and they may not want to decrease spending a lot and they may decide they’ll take a larger percentage of what we earn, and we’ll pay it,” he said during his first shareholder meeting since the passing of longtime business partner Charlie Munger

    Buffett has repeatedly advocated that those who can pay more taxes should do so, famously saying his secretary paid a higher tax rate than he did. The Biden administration is now looking to address that in the election year with a proposal for higher capital gains taxes, including on unrealized gains

    Due to the growing inability of DC’s political elites to agree on how best to tackle U.S. government debt, Standard & Poor’s in 2011 stripped the country of its AAA sovereign debt rating—something Buffett criticized at the time. The ratings agency has since been joined by Fitch, which downgraded the U.S. last year—and Moody’s is expected to follow

    The broader topic of the national debt lends itself to misconceptions when people think of it in terms of personal debt. While the level must be managed prudently—U.S. national debt now stands at over $34 trillion, or 122% of the economy—it is not something that has to be paid off like a homeowner’s mortgage. 

    Not even companies pay off their debt—many simply negotiate terms under which they can roll it over. In fact, investors demand that companies gear their balance sheets based on their risk profile, because if they don’t they won’t produce high enough returns on their equity. Indeed, the business model of buyout firms like Blackstone and Carlyle relies on optimizing the capital structure of a purchased company.

    Buffett sees no alternative to U.S. Treasury bonds

    Each country’s experience with debt is different—and it doesn’t always depend on the size of the debt.

    Japan, for example, has shouldered far more debt than Greece, but until late last year it was predominantly held by domestic investors, a stable source of funding much like a bank’s guaranteed depositor base. Greece, however, was reliant on international investors who can shift their money from one jurisdiction to another at a moment’s notice. 

    If spent on productive assets, debt is a useful tool for governments to improve their economy’s growth or resilience without resorting to taxation. Crisis only hits when investors lose faith in a government or company’s ability to service their debt and the situation spirals out of control in a destructive feedback loop that sees investors demanding ever higher premiums to offset ever rising risk. 

    Economists argue over where the tipping point hits when the level of debt as a proportion of the overall economy is no longer sustainable. But the U.S. enjoys three major advantages that explain why the debt hasn’t been a problem yet. 

    For one, it has a highly flexible and resilient economy capable of adjusting to external shocks better than most industrial nations—this offers investors a more attractive return than parking their money elsewhere. 

    It also has the deepest and most liquid sovereign debt market in the world, crucially allowing it to serve as a safe haven for capital in times of crisis—which is precisely when this advantage is needed the most. And finally, it has the world’s reserve currency so there is always a need for dollars and the preferred means of holding them is through interest-bearing Treasuries rather than cash. 

    “My best speculation is that U.S. debt will be acceptable for a very long time, because there is not much alternative,” said Buffett.

    If anything, the U.S.’s problem is that too many administrations—both Republican and Democrat—have become complacent about the issue since Bill Clinton balanced the budget, knowing full well there has been no attempt at addressing burgeoning risks from the U.S. unfunded entitlement programs for Medicare and Social Security.  

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    Christiaan Hetzner

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  • Biden takes another stab at forgiving student loan debt. Here’s how to know if you qualify for his latest $7.4 billion package

    Biden takes another stab at forgiving student loan debt. Here’s how to know if you qualify for his latest $7.4 billion package

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    The White House has announced a new $7.4 billion  round of student loan cancellations, relieving nearly 277,000 borrowers of their debt. The latest attempt to chip away at the amount owed for education means President Joe Biden has now erased a grand total of $153 billion in debt, impacting 4.3 million people.

    This round of student loan forgiveness will largely help borrowers who are enrolled in federal loan forgiveness programs including the Saving on a Valuable Education (SAVE) Plan, which offers lower monthly payments based on income, and income-driven repayment plans, which are based on a percentage of a borrower’s monthly discretionary income. People who qualify for the newest loan cancellations will start receiving emails on Friday.

    Of the $7.4 billion forgiveness round, $3.6 billion will go to 207,000 borrowers enrolled in the SAVE plan and $3.5 billion is saved for 65,800 people registered in income-driven repayment plans. That leaves about $300 million for 4,600 people enrolled in the Public Service Loan Forgiveness program who will also receive debt forgiveness. 

    The SAVE plan differs from other income-based loan plans in that it typically leads to lower monthly payments and it’s meant to limit loan balance growth, which can happen under other income-based plans due to unpaid interest. Under the SAVE Plan, “any remaining accrued interest will be covered by the government, so your principal balance won’t increase,” according to the Federal Student Aid

    Biden has continued student loan forgiveness in rounds after the Supreme Court last summer blocked his grand plan that would have wiped out $400 billion in student loans. It would have forgiven up to $20,000 in federal student loan debt for tens of millions of borrowers. The plan was supported by high-profile Democrats in Congress, including Elizabeth Warren and Chuck Schumer— and they even pushed for more dramatic cancellation plans. But it was controversial since it was first announced in August 2022. The plan spurred several legal challenges, with two related cases making it to the nation’s highest court, arguing that Biden didn’t have the authority to forgive debt without approval from Congress. The original plan was ultimately blocked in a 6-to-3 decision in June 2023.

    But last week, Biden unveiled his backup plan to bring the total number of people with canceled debts to 30 million since the administration’s efforts began three years ago. 

    How rampant is student loan debt?

    Currently, more than 43.2 million Americans have federal student loan debt, totaling more than $1.6 trillion, according to Education Data Initiative, a higher education research group, with the average borrower owing $37,000. Income-driven replacement plans, including the SAVE Plan, have provided $49.2 billion in debt relief to more than 996,000 borrowers. 

    The issue of student loan debt is only set to get worse as the price of higher education continues to rise. The average price of tuition at a public four-year college is 23 times higher than in 1963, according to an Education Data Initiative report

    And as higher education costs rise, so too does Biden’s commitments to reducing borrowers’ accumulating debt. He extended a pause on student loan payments for three years between March 2020 until September 2023; in November 2021, he canceled $11 billion in student loans, and last December, he announced a $4.8 billion student debt relief package for more than 80,300 people. 

    More recently, while at a campaign stop on April 8 in Madison, Biden unveiled a new plan to help 25 million borrowers lower their debt, with an offer to send at least $5,000 in relief to 10 million borrowers. He’s also proposed making community college free so “more Americans can access the promise of higher education.” 

    The “current student loan system and repayment programs don’t reach all borrowers, and for many Americans student loans continue to be a barrier,” Biden said in an April 8 statement

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  • Texas AG sues to halt a guaranteed income program, calling it a ‘socialist experiment’

    Texas AG sues to halt a guaranteed income program, calling it a ‘socialist experiment’

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    Texas’ attorney general filed a lawsuit on Tuesday seeking to stop a guaranteed income program set to start this month for Houston-area residents.

    The program by Harris County, where Houston is located, is set to provide “no-strings-attached” $500 monthly cash payments to 1,928 county residents for 18 months. Those who qualified for the program must have a household income below 200% of the federal poverty line and need to live in one of the identified high-poverty zip codes.

    The program is funded by $20.5 million from the American Rescue Plan, the pandemic relief law signed by President Joe Biden in 2021.

    Federal pandemic funding has prompted dozens of cities and counties across the country to implement guaranteed income programs as ways to reduce poverty, lessen inequality and get people working.

    In his lawsuit filed in civil court in Houston, Texas Attorney General Ken Paxton dubbed the program the “Harris Handout” and described it as a “socialist experiment” by county officials that violates the Texas Constitution and is “an illegal and illegitimate government overreach.”

    “This scheme is plainly unconstitutional,” Paxton said in a statement. “Taxpayer money must be spent lawfully and used to advance the public interest, not merely redistributed with no accountability or reasonable expectation of a general benefit.”

    State Sen. Paul Bettencourt, a Republican from Houston who had asked Paxton to look into the county’s program, called it an “unbelievable waste” of taxpayer dollars and “Lottery Socialism.”

    Harris County officials pushed back on Paxton’s lawsuit, which is asking for a temporary restraining order to stop the program. The first payments were set to be distributed as early as April 24.

    Harris County Judge Lina Hidalgo, the county’s top elected official, said guaranteed income is one of the oldest and most successful anti-poverty programs, and she feels “for these families whose plans and livelihoods are being caught up in political posturing by Trumpian leaders in Texas.”

    “This lawsuit from Ken Paxton reads more like a MAGA manifesto than a legal document,” said Harris County Commissioner Rodney Ellis, who spearheaded the program, known as Uplift Harris.

    Harris County Attorney Christian Menefee said the program “is about helping people in a real way by giving them direct cash assistance — something governments have always done.”

    The lawsuit is the latest legal battle in recent years between Harris County, Texas’ biggest Democratic stronghold, and the GOP-dominated state government.

    Elections in the nation’s third-most populous county have been scrutinized for several years now. The Texas Legislature passed new laws in 2023 seeking more influence over Harris County elections.

    Last year, Texas took over the Houston school district, the state’s largest, after years of threats and lawsuits over student performance. Democrats assailed the move as political.

    Austin and San Antonio have previously offered guaranteed income programs in Texas. El Paso County is set to roll out its own program later this year. No lawsuits have been filed against those programs.

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    Juan Lozano, The Associated Press

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  • Buyers of EVs with batteries from China get dinged under new Biden administration rules for tax credits

    Buyers of EVs with batteries from China get dinged under new Biden administration rules for tax credits

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    The government proposed new rules Friday that could make it harder for electric vehicles to qualify for a full $7,500 federal tax credit, complicating efforts to meet President Joe Biden’s goal that half of new passenger vehicles sold in the U.S. run on electricity by 2030.

    Plans outlined by the departments of Treasury and Energy would limit EV buyers from claiming the full tax credit if they purchase cars containing battery materials from China and other countries that are considered hostile to the United States.

    The new rules, required under Biden’s signature climate law approved last year, are likely to slow consumer acceptance of electric vehicles just as Biden is trying to ramp up sales to help meet his goal to cut planet-warming greenhouse gas emissions in half by 2030. EV sales have tripled since Biden took office, but the U.S. still depends on foreign sources, especially China, for many of critical minerals needed to produce EV batteries.

    It’s still not clear which vehicles would be eligible for the full $7,500 tax credit under the rules because the Biden administration has yet to publish any lists.

    A ‘foreign entity of concern’

    Congress included language in the Inflation Reduction Act that bars electric cars from qualifying for the full tax break if critical minerals or other battery components were made by a “foreign entity of concern.” The law defines that as any company that is owned by, controlled by or subject to the jurisdiction of North Korea, China, Russia or Iran, although the main target is China.

    Administration officials said the auto industry has long been aware of the pending rules and has taken steps to develop auto-supply chains in the U.S and distance the industry from China, which has long dominated production and processing of minerals such as lithium and graphite used in EV batteries.

    The White House hopes the new tax credit rules will encourage development of auto-supply chains in the U.S.

    “Automakers have already adjusted the supply chain to ensure buyers are eligible for these credits and are continuing to do so,” Deputy Treasury Secretary Wally Adeyemo told reporters this week. “These changes take time, but companies are making the investments and Americans are buying these cars.”

    Spurred by the climate law, carmakers such as General Motors and Hyundai, are racing to build U.S. factories to produce batteries and process materials like lithium. But they are still years away from being able to produce an electric vehicle without materials and components from China.

    Adeyemo and other officials said the rules are intended to provide clarity following months of uncertainty over how strictly the administration would interpret rules on foreign entities of concern, sometimes referred to as FEOC.

    “Clarity is exactly what we’re after with manufacturers in particular as they make major investments in EVs that are vital for the future growth of this important industry,” Deputy Energy Secretary David Turk said.

    Asked how many cars that now qualify for tax credits will lose some or all of the credit next year, Adeyemo said the auto companies themselves “will determine which ones qualify” by their actions.

    “These are sophisticated players,” Turk added, referring to the auto industry. Ford, GM and other U.S. companies ”are moving already” to boost U.S. supplies of batteries and critical minerals and will move further to comply in coming months, Turk said.

    John Bozzella, president and CEO of the Alliance for Automotive Innovation, a trade group representing major automakers, said the transition to EVs “requires nothing short of a complete transformation of the U.S. industrial base. It’s a monumental task that won’t happen overnight.”

    The Treasury Department’s guidance “recognizes the complexity of this task and the challenges facing automakers with some good balance. Day one verdict: Clarity for automakers. Finally,” he said in a statement Friday.

    Sam Abuelsamid, a mobility analyst for Guidehouse Insights, expects many EVs now eligible for the full $7,500 tax credit will see that cut in half next year when the new regulations take effect.

    Automakers can probably comply with a requirement that 60% of battery parts come from North America next year to qualify for a $3,750 tax credit, he said. But it will be much harder for them to get batteries with half their critical minerals from the U.S. or countries with which it has a free trade agreement, and it’s likely they’ll lose $3,750 of the credit.

    Beginning in 2024, an eligible clean vehicle may not contain any battery components that are manufactured by a foreign entity of concern, the Treasury Department said. Beginning in 2025 clean vehicle must not contain any critical minerals that were extracted, processed, or recycled by a foreign entity of concern in order to qualify for a tax credit.

    As a result, 2024 and 2025 are likely to be tough years for automakers to meet the battery content requirements, Abuelsamid and other analysts said.

    To allow for credits to continue while the rulemaking process proceeds, the proposed rules would provide a transition period for EVs placed in service after Jan. 1, Treasury said.

    While smaller tax credits and high interest rates could hurt EV sales, a new rule allowing tax credits to be applied at the time of sale might offset those problems, Abuelsamid said. Getting the tax credit upfront, rather than waiting until filing tax returns next year, “will actually reduce your monthly payment, which is a major stumbling block for consumers,” he said.

    Customers also can lease an EV and get the full tax credit since they are classified under the law as commercial vehicles exempt from the North America manufacturing and battery-content requirements.

    Joe Manchin pushed tough-on-China stance

    Before the new rules were announced, Sen. Joe Manchin, D-W.Va., urged the Treasury Department to adopt the “strictest possible standards” to prevent Chinese-produced minerals or Chinese battery companies from winning electric vehicle tax credits.

    Manchin, chairman of the Senate Energy and Natural Resources Committee, was a key author of the provision barring the full tax credit if battery components are manufactured or assembled by an FEOC such as China.

    “China has routinely shown a blatant disregard for fair competition, unfairly leveraged state-sponsored investments, and wielded their market domination in key industries as a cudgel,” Manchin wrote in a Nov. 13 letter to Treasury Secretary Janet Yellen. China is currently responsible for nearly three-quarters of the world’s cathode production, 92% of anode production and 76% of lithium-ion battery cell production, Manchin wrote.

    A spokesman for the National Mining Association welcomed the new rules as “an important step forward” to address China’s dominance of EV supply chains, but said more needs to be done to build secure and reliable mineral supply chains in the U.S.

    “We simply need vastly more domestic mining and processing. We can’t catalyze secure, responsible supply chains if we don’t approve domestic mines,” spokesman Conor Bernstein said.

    The complexity of the rules is shown by controversy over Ford Motor Co.’s plans to build a factory in Michigan that would employ about 1,700 people to make batteries for new and existing EVs. Ford says a wholly owned subsidiary would own the factory and employ the workers. But China’s Contemporary Amperex Technology Co. Limited, or CATL, which is known for its lithium-iron-phosphate expertise, would supply technology, some equipment and workers.

    Administration officials declined to say whether batteries from the Ford plant would qualify for tax credits.

    ___

    AP Auto Writer Tom Krisher in Detroit contributed to this report.

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    Matthew Daly, The Associated Press

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  • Moody’s lowers U.S. credit-rating outlook to negative, warns ‘fiscal deficits will remain very large’

    Moody’s lowers U.S. credit-rating outlook to negative, warns ‘fiscal deficits will remain very large’

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    Moody’s Investors Service turned negative on the US’s credit rating outlook Friday, citing risks to the nation’s fiscal strength and political polarization.

    The rating assessor lowered the outlook from stable, even as it affirmed the nation’s rating at Aaa, the highest investment-grade notch.

    “Downside risks to the US’ fiscal strength have increased and may no longer be fully offset by the sovereign’s unique credit strengths,” William Foster, a senior credit officer at Moody’s, wrote in a statement. “In the context of higher interest rates, without effective fiscal policy measures to reduce government spending or increase revenues, Moody’s expects that the US’ fiscal deficits will remain very large, significantly weakening debt affordability.”

    Moody’s, which is the only remaining major credit grader to assign the US a top rating, said the Aaa affirmation reflects that the US’s formidable credit strengths still preserve its credit profile.

    In a statement, White House Press Secretary Karine Jean-Pierre said the outlook change was a “consequence of congressional Republican extremism and dysfunction.” Deputy Secretary of the Treasury Wally Adeyemo, meanwhile, pushed back against the outlook change, saying the “American economy remains strong, and Treasury securities are the world’s preeminent safe and liquid asset.”

    Moody’s had earlier hinted at a potential downgrade, saying in a Sept. 25 report that while “debt service payments would not be impacted and a short-lived shutdown would be unlikely to disrupt the economy, it would underscore the weakness of US institutional and governance strength relative to other Aaa-rated sovereigns.”

    Fitch Ratings has the United States’ sovereign rating at a score of AA+, one notch below its highest mark, after the credit assessor downgraded the US government in August following the latest debt-ceiling battle. S&P Global Ratings has it at a score of AA+, also just below its top grade, having stripped the US of its top score in 2011 on the heels of an earlier debt-ceiling crisis.

    Ten-year Treasury note futures dropped after the announcement, reaching fresh session lows. The yield on US 10-year Treasuries, meanwhile, extended back through 4.65% and ended the session matching the highs reached in the Asia session.

    The government’s credit plans have been in particular focus after the Treasury last week announced that it would borrow $112 billion in quarterly refunding and said it expects one more step up in quarterly issuance of longer-term debt.

    The US also faces a government shutdown on Nov. 18 if Congress doesn’t come to an agreement to pass short-term spending bills. These economic disruptions would come at a challenging time for investors, who already have to contend with a toxic mix of large US fiscal deficits and persistent inflation.

    “Continued political polarization within US Congress raises the risk that successive governments will not be able to reach consensus on a fiscal plan to slow the decline in debt affordability,” according to Moody’s.

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    Carter Johnson, Bloomberg

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  • Biden says that after Israel-Hamas war Mideast leaders must consider a two-state solution: ‘There’s no going back to the status quo’

    Biden says that after Israel-Hamas war Mideast leaders must consider a two-state solution: ‘There’s no going back to the status quo’

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    It’s one, he argues, where finally finding agreement on a long-sought two-state solution to the Israel-Palestinian conflict should be a priority.

    “There’s no going back to the status quo as it stood on Oct. 6,” Biden told reporters, referring to the day before Hamas militants attacked Israel and set off the latest war. The White House says Biden conveyed the same message directly to Netanyahu during a telephone call this past week.

    “It also means that when this crisis is over, there has to be a vision of what comes next, and in our view it has to be a two-state solution,” Biden said.

    The push for a two-state solution — one in which Israel would co-exist with an independent Palestinian state — has eluded U.S. presidents and Middle East diplomats for decades. It’s been put on the back burner since the last American-led effort at peace talks collapsed in 2014 amid disagreements on Israeli settlements, the release of Palestinian prisoners and other issues.

    Palestinian statehood is something that Biden rarely addressed in the early going of his administration. During his visit to the West Bank last year, Biden said the “ground is not ripe” for new attempts to reach a permanent peace even as he reiterated to Palestinians the long-held U.S. support for statehood.

    Now, at a moment of heightened concern that the Israel-Hamas war could spiral into a broader regional conflict, Biden has begun to emphasize that once the bombing and shooting stop, working toward a Palestinian state should no longer be ignored.

    Until recently, Biden had put far more emphasis on what his administration saw as the achievable ambition of normalizing relations between Israel and its Arab neighbors than on restarting peace talks.

    Even his national security adviser, Jake Sullivan, in a lengthy essay that was written shortly before the Oct. 7 attack and described Biden’s global foreign policy efforts made no mention of Palestinian statehood. In an updated version of the Foreign Affairs essay posted online, Sullivan wrote that the administration was “committed to a two-state solution.” White House official also say the normalization talks have always included significant proposals to benefit the Palestinians.

    There is no shortage of obstacles in the way of Biden’s postwar vision. An independent Palestinian state in the West Bank and Gaza is viewed as a nonstarter by Israel’s far-right government. An ineffectual Palestinian Authority controls the West Bank and has little credibility with the population it governs. Meantime, a looming U.S. presidential election could make Biden a less-than-ideal mediator in 2024.

    Aaron David Miller, who served as an adviser on Middle East issues to Democratic and Republican administrations, said Biden’s recent emphasis on a two-state solution was an “aspirational talking point.”

    “The odds are very, very low,” he said. “It’s essentially mission impossible.”

    The call for a two-state solution arose Saturday at the Republican Jewish Coalition summit in Las Vegas, where GOP presidential contenders criticized Biden’s Israel policy and what they saw as a failure by Democrats to sufficiently condemn antisemitism across the United States. One presidential hopeful, biotech entrepreneur Vivek Ramaswamy, said Israel should feel free to abandon “the myth of a two-state solution.”

    The White House is cognizant that Biden’s calls for a two-state solution are ambitious and are perhaps not achievable in the near term, according to a White House official who was not authorized to publicly discuss internal deliberations and spoke on condition of anonymity. There is also a recognition that the Netanyahu government, facing public backlash for failing to prevent the Hamas attack, is focused on its operations against Hamas and is not giving much consideration to Biden’s talk of Palestinian statehood.

    Still, Biden believes it is important for him and his team to convey “hope” and make clear that his administration backs a Palestinian state, the official said.

    Dennis Ross, a negotiator in the peace process in both the George H. W. Bush and Bill Clinton administrations, said it is important to start planning for down the road even though there is no end in sight for the current conflict.

    “You can’t go back to the point where you can ignore the Palestinians as an issue,” Ross said. “It’s not hopeless. When you get beyond this, it’s not hopeless.”

    The renewed calls for Palestinian statehood also come as Palestinian American groups, Muslim advocacy organizations and some fellow Democrats have expressed frustration that Biden continues to express full-throated support for Israel at a time when the Palestinian death count is mounting and the humanitarian crisis in Gaza worsening.

    “This is not about someone’s faith,” said White House National Security Council spokesman John Kirby said. “It’s about finding a future for the Middle East that is more cooperative, more stable, more secure, where Israel’s more integrated into the region and we’re not giving up on it.”

    Biden has expressed concern about deteriorating conditions for innocent civilians in Gaza. But his insistence that he will not dictate how Israeli forces carry out their operations could complicate his ability to maintain credibility as an evenhanded broker. U.S. Muslim leaders, at a private White House meeting with Biden and top aides this past week, urged the president to call for a cease-fire.

    Participants also told Biden that his silence on what they perceive as collective punishment by Israel against innocent Gaza civilians was undercutting his standing with Arab Americans and Muslims, including in states that could have a big impact on the 2024 election.

    They also expressed their concern to Biden over his statement that he has “no confidence” in the Gaza death count because it is tabulated the Hamas-run Health Ministry. The ministry says more than 8,000 people, mostly women and minors, have been killed in Gaza. More than 1,400 people have died on the Israeli side, mainly civilians killed during the initial Hamas onslaught.

    Rami Nashashibi, the founder of the Inner City Muslim Action Network in Chicago and a participant in the meeting, said he told Biden that his comments about the death toll in Gaza came off as “dehumanizing.” Nashashibi added that he and the other participants told the president that his comments were particularly unsettling because Biden, throughout his term, has demonstrated profound empathy with suffering people.

    “I raised that with him very directly, and others in the room also did so in a way that I think was heard and acknowledged,” Nashashibi said.

    The renewed push for statehood could be pointed to by Biden as a sign of his commitment to Palestinian sovereignty. But his handling of the Mideast turmoil is already threatening to be a drag on his reelection prospects in 2024, and any progress that Biden can make toward a two-state solution is likely to require a second term.

    Some Democratic Party officials have become concerned his handling of the war could dent Biden’s and the party’s standing with Arab American voters as well as a younger voters who polls show have greater sympathy for Palestinian concerns than the party’s older and more centrist voters.

    A senior Michigan Democratic Party official said Biden’s handling of the war has already emerged in the state as a “huge” problem and could become more vexing if the war stretches on and the death toll in Gaza continues to rise. The official spoke on condition of anonymity to discuss sensitive party concerns.

    Biden was expected to face a tight 2024 race in the state even before the war. He won Michigan by less than 3 percentage points in 2020, and Republican Donald Trump beat Democrat Hillary Clinton in the state by 0.3% in 2016. More than 300,000 people of Middle Eastern or North African ancestry live in Michigan.

    “Even if he’s hurt to the tune of a few points, he’s already got a very close race,” said longtime Michigan pollster Bernie Porn .

    ___

    Associated Press writer Michelle L. Price in Las Vegas contributed to this report.

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    Aamer Madhani, Chris Megerian, Will Weissert, Seung Min Kim, The Associated Press

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