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Tag: U.S. government shutdown

  • ‘I can’t afford cooking gas,’ shutdown of Kenya’s Koko biofuel firm wipes out clean cooking options

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    NAIROBI, Kenya — It was designed to be as simple as buying airtime: a quick tap on the dispenser, a few shillings and a cooking canister refilled. Now, more than 3,000 Koko fuel supply points across Kenya sit idle, with no fuel and no clear answers for the households that relied on them.

    For more than a decade, Koko Networks helped shift over 1.5 million Kenyan homes without access to public gas systems away from smoky charcoal stoves to bioethanol, marketed as a cleaner, modern way to cook. The steady blue flame became a symbol of Kenya’s push toward cleaner household energy.

    That promise has dimmed.

    After failing to win government letter of authorization that would allow them to sell carbon credits — permits that allow holders to emit certain amount of greenhouse gases — Koko abruptly shut down its fuel distribution network, bringing to a halt a model once hailed as a poster child of Africa’s green transition.

    In Kibera, Nairobi’s largest informal settlement, most Koko Networks outlets have closed, and some have removed the bioethanol dispensers altogether. Since 2014, Koko had imported bioethanol products. That ended abruptly in 2023 when the government withheld its import permit, forcing Koko to use local sources that were erratic and more expensive.

    That reality is setting in for Fredrick Onchenge. He used to serve up to 50 Koko customers a day. Now his machines are silent.

    “Initially, I was confused,” Onchenge said. “Then it dawned on me what had just happened. My livelihood was gone. I tried calling the salesperson, but their phone was switched off.”

    For many customers, their access ended with a text message announcing the shutdown. Kitchens that once cooked meals without smoke now have idle double-burner stoves — reminders of a system that stopped overnight.

    Grace Kathambi is weighing her options.

    “This was a life changer for me,” Kathambi said. “I could not afford the $8 needed to refill a gas cylinder, and Koko was my best alternative. With about 30 U.S. cents, I could buy enough Koko fuel to cook.”

    With the bioethanol supply cut off, households like hers must now choose between returning to charcoal or finding money for more expensive liquefied petroleum gas.

    “I cannot afford to use gas,” said Margaret Auma. “Koko made life very easy for those of us who earn little from casual jobs. We feel abandoned, yet it’s not our fault.”

    For weeks, Koko and the Kenyan government haggled over a crucial letter authorizing carbon credits and import permits for bioethanol made from molasses, a sugarcane by-product. The company needed those approvals to unlock millions of dollars in international financing that helped keep fuel prices low. Kenyan authorities held back, citing broader concerns about the credibility of carbon credits.

    Koko — which counted the Microsoft Climate Innovation Fund, and South Africa’s Rand Merchant Bank as its investors, announced on Jan. 30 that without the approvals its business model was financially unsustainable and it was shutting down.

    “Koko’s case is uniquely multidimensional,” said David Ndii, Kenya’s presidential advisor on economic affairs. Ndii cited issues including the Paris Agreement framework, questions around the credibility of cookstove carbon credits, Kenya’s climate policies, carbon market regulations, the transparency of Koko’s business model and diplomatic considerations.

    He dismissed the prospect of state intervention, saying, “Even good doctors lose patients.”

    Kenya’s energy and treasury officials have declined to comment on the closure, which energy analysts say exposes weaknesses in how clean cooking is financed across Africa.

    “The clean cooking situation in Kenya, and across Africa is a serious crisis,” said Amos Wemanya, a senior analyst on renewable energy at Power Shift Africa. “This is not just about emissions or climate targets. It is about development, health, dignity and household survival.”

    Wemanya said models heavily reliant on carbon credits risk prioritizing markets over people.

    “We are not going to solve the clean cooking challenge through carbon math or carbon credit spreadsheets,” he said. “Carbon markets allow polluters to continue emitting while households, who are supposed to be the beneficiaries, still pay for the stoves and bear the risks when projects fail.”

    When such systems collapse, he added, it is households that suffer most.

    “They are the ones forced to revert to harmful alternatives like charcoal and paraffin,” Wemanya said.

    He said the Koko episode shows the priority should shift toward affordable electricity, especially in rural areas.

    “Clean cooking will not be solved through carbon credits,” he said. “The reality is that gas-based solutions were never a long-term climate solution. They simply shift households from firewood to imported fossil fuels. So, the bigger lesson here is that we need to move toward systems that truly work, primarily electricity powered by renewable energy.”

    For now, households like Auma’s must now choose between returning to charcoal or finding money for more expensive LPG.

    “What are we supposed to do? Go back to using charcoal in our one-room houses?” Auma asked. “That is the smoke and sickness we were trying to escape.”

    ____

    The Associated Press’ climate and environmental coverage receives financial support from multiple private foundations. AP is solely responsible for all content. Find AP’s standards for working with philanthropies, a list of supporters and funded coverage areas at AP.org.

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  • Trump signs bill to end partial government shutdown

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    WASHINGTON — President Donald Trump signed a roughly $1.2 trillion government funding bill Tuesday that ends the partial federal shutdown that began over the weekend and sets the stage for an intense debate in Congress over Homeland Security funding.

    The president moved quickly to sign the bill after the House approved it with a 217-214 vote.

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    Copyright 2026 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.

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    By KEVIN FREKING – Associated Press

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  • Retail sales rose a better-than-expected 0.6% in November

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    NEW YORK — Shoppers increased their spending in November from October as holiday shopping kicked into full gear.

    Retail sales rose a better-than-expected 0.6% in November, following a revised 0.1% decline October, according to the Commerce Department. The report was delayed more than a month because of the 43-day government shutdown.

    Retail sales rose 0.1% increase in September, but jumped 0.6% in July and August and 1% in June.

    The federal government is gradually catching up on economic reports that were postponed by the shutdown.

    Sales at clothing and accessories stores rose 0.9%, while online businesses had a 0.4% increase. Business at sporting goods and hobby stores was up 1.9%.

    The snapshot offers only a partial look at consumer spending and doesn’t include many services, including travel and hotel lodges. But the lone services category – restaurants – registered an uptick of 0.6%.

    The report comes as 41,000 attendees from retailers, brands and technology companies gathered for the annual three-day National Retail Federation convention. With shoppers growing anxious about high prices and impact of President Donald Trump’s tariffs, as well as a souring job market, the outlook for shopping for this year was a key issue that dominated discussions.

    The industry wrapped up a solid holiday shopping season, based on early data, but many consumers, particularly from the lower income households, remain financially strained.

    Hiring has generally been weak, which could hurt consumer spending and the broader economy for 2026.

    Inflation cooled a bit last month as prices for gas and used cars fell, a sign that stubbornly elevated cost pressures are slowly easing, according to a report from the Labor Department Tuesday.

    Consumer prices rose 0.3% in December from the prior month, the same as in November. Excluding the volatile food and energy categories, core prices rose 0.2%, also matching November’s figure. Increases at that pace, over time, would bring inflation closer to the Federal Reserve’s target of 2%.

    Many economists had predicted inflation to jump last month as the government resumed normal data collection after the six-week shutdown last fall, so the modest increases that matched the November figures came as a relief. The price of manufactured goods was flat in December, a sign that the impact of tariffs may be starting to fade.

    The National Retail Federation is predicting retail sales in November and December grew between 3.7% and 4.2% over 2024. That translates to total spending between $1.01 trillion and $1.02 trillion. By comparison, holiday sales for 2024 rose 4.3% over 2023 to reach $976.1 billion.

    The trade group will not be coming out with official sales results for the November and December period until next month when the government reports December retail figures.

    Lululemon Athletica said on Monday that it anticipates fourth-quarter profit and revenue to come in at the high end of its previously released outlook, helped by a solid holiday shopping season. And Abercrombie & Fitch Co. said on Monday that both its Hollister and Abercrombie fared well during the holiday season.

    A better picture of holiday spending will come next month when Walmart, Target and other major retailers report results.

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  • Producer prices rise a mild 0.2% in November, government says in report delayed by federal shutdown

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    WASHINGTON — U.S. wholesale prices rose modestly in November, the government said in report delayed by the federal government shutdown.

    The Labor Department reported Wednesday that its producer price index — which measures inflation before it reaches consumers — rose 0.2% in November from October and 3% from a year earlier.

    The numbers are old. They were supposed to come out Dec. 11, but the report was delayed by last fall’s 43-day government shutdown. The Labor Department will put out December’s producer price index on Jan. 30; it was originally scheduled to come out Wednesday.

    Gasoline prices rose sharply in November. Excluding volatile food and energy prices, so-called core wholesale prices were unchanged from October and up 3% from November 2024.

    President Donald Trump’s sweeping taxes on imports were expected to drive inflation sharply higher, but their impact so far has been more modest than expected.

    The Labor Department reported Tuesday that consumer price inflation cooled last month, rising a modest 0.3% from November and 2.7% from December 2024. But it remains above the Federal Reserve’s 2% target.

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  • How a fast-moving $50 cash relief program buoyed needy families when SNAP payments were paused

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    Finances already looked tight for Jade Grant and her three children as she entered the year’s final months.

    “Everyone’s birthday is back-to-back,” the 32-year-old certified nursing assistant said. “You have holidays coming up. You have Thanksgiving. Everything is right there. And then, boom. No (food) stamps.”

    Grant is among the nearly 42 million lower-income Americans who get help buying groceries from the Supplemental Nutrition Assistance Program, or SNAP. When the federal shutdown began in October, she wasn’t worried about losing her benefits — she said she is used to government “foolishness.”

    But circumstances got dicey when the budget impasse entered its second month and President Donald Trump took the unprecedented step of freezing November SNAP payments. With one child who eats gluten free and another with many allergies, specialty items already drove up her grocery bill. Now Grant wondered how she’d put food on the table — especially with her youngest’s 6th birthday approaching.

    Then Grant logged into Propel, an app used by 5 million people to manage their electronic benefits transfers, where she saw a pop-up banner inviting her to apply for a relief program. Within a minute she’d completed a survey and about two days later she got a virtual $50 gift card.

    The total didn’t come close to her monthly SNAP allotment. But the Palm Bay, Florida, resident said it was enough to buy a customized “ Bluey ” birthday cake for her son.

    Nearly a quarter of a million families got that same cash injection from the nonprofit GiveDirectly as they missed SNAP deposits many need to feed their households. The collaboration with Propel proved to be the largest disaster response in the international cash assistance group’s history outside of COVID-19; non-pandemic records were set with the $12 million raised, more than 246,000 beneficiaries enrolled and 5,000 individual donors reached.

    Recipients are still recovering from the uncertainty of last month’s SNAP delays. Company surveys suggest many are dealing with the long-term consequences of borrowing money in early November when their benefits didn’t arrive on time, according to Propel CEO Jimmy Chen. At a time when users felt the existing safety net had fallen through, they credit the rapid payments for buoying them — both financially and emotionally.

    “It’s not a lot. But at the same time, it is a lot,” Grant said. “Because $50 can do a lot when you don’t have anything.”

    It’s not the first partnership for the antipoverty nonprofit and for-profit software company. They have previously combined GiveDirectly’s fast cash model with Propel’s verified user base to get money out to natural disaster survivors — including $1,000 last year to some households impacted by Hurricanes Milton and Helene.

    “This particular incident with the shutdown we saw as akin to a natural disaster,” Chen said, “in the sense that it created a really sudden and really acute form of hardship for many Americans across the country.”

    The scope differed this time. The “man-made disaster,” as GiveDirectly U.S. Country Director Dustin Palmer put it, was not geographically isolated. The benefits freeze impacted more people than they usually serve. SNAP costs almost $10 billion a month, Palmer said, so they never expected to raise enough money to replace the delayed benefits altogether.

    But 5,000 individual donors — plus $1 million gifts from Propel and New York nonprofit Robin Hood, as well as other major foundations’ support — provided a sizable pot. Palmer found that the issue resonated more than he expected.

    GiveDirectly reports that the median donation was $100. Palmer took that response as a sign the issue hit close for many Americans.

    “You and I know SNAP recipients. Maybe we’ve been SNAP recipients,” Palmer said. “So that was not a disaster in Central Texas where I’ve never been, but something in our communities.”

    The greatest question revolved around the total sum of each cash transfer. Should they reach more people with fewer dollars or vice versa? Los Angeles wildfire survivors, for example, got $3,500 each from a similar GiveDirectly campaign. But that’s because they wanted to provide enough to cover a month’s worth of lodging and transit to those who lost their houses.

    They settled on $50 because Palmer said they wanted a “stopgap” that represented “a meaningful trip to the grocery store.” To equitably focus their limited resources on the that would be missing the most support, Palmer said they targeted families with children that receive the maximum SNAP allotment. Propel’s software allowed them to send money as soon as the app detected that a family’s benefits hadn’t arrived at the usual time of the month.

    Recipients decided whether their prepaid debit cards arrived physically, which might allow them to take cash out of an ATM, or virtually, which could be used almost immediately. The split is usually pretty even, according to Palmer, but this time more than 90% of recipients went with the virtual option.

    “To me, that speaks to the speed and need for people,” Palmer said. “Just saying, ‘Oh yeah, I just need food today. I don’t want to wait to get it mailed.’”

    Dianna Tompkins relies on her SNAP balance to feed her toddler and 8-year-old child.

    “I watch it like a hawk, honestly,” she said.

    But she said she entered “panic mode” when she missed what is usually a $976 deposit last month. She’s a gig worker, completing DoorDash and Uber Eats orders when she finds the time.

    Her pantry is always stocked with non-perishables — canned goods, pastas, sauces — in case her unreliable van stops working and she can’t get to the store. But she couldn’t risk running out as uncertainty continued over the shutdown’s length and future SNAP payments.

    GiveDirectly’s $50 bought her milk and bread — not much but a “big help,” she said. Her local food pantries in Demotte, Indiana, had proven inconsistent. One week they gave far more than expected, she said, but the following week they were “so overwhelmed” that it almost wasn’t worth visiting.

    She said it’s “scary” the government “can just decide to not feed so many people.”

    “At least I have my safety net but not everybody’s lucky,” she said. “I’ve never trusted the government and that’s just a new solid reason why I don’t trust them.”

    Chen, the Propel CEO, said his company’s research suggests that November’s freeze damaged many recipients’ confidence in the government. Even with SNAP funded through the next fiscal year, Chen said, many respondents are concerned about another shutdown.

    “Now it’s introduced this seed of doubt for people that this really fundamental thing that they use to pay for food may not be there when they need it,” Chen said.

    The gap persists for many. Propel estimates that just over half of SNAP recipients got their benefits late last month. GiveDirectly launched an additional “mop-up” campaign to distribute cash retroactively for more than 8,000 people still reeling.

    The delay disrupted the financial balancing act that Grant had going. She put off payments for her electricity bill and car insurance.

    “Government shuts down and that just throws everything completely off,” she said.

    ___

    Associated Press coverage of philanthropy and nonprofits receives support through the AP’s collaboration with The Conversation US, with funding from Lilly Endowment Inc. The AP is solely responsible for this content. For all of AP’s philanthropy coverage, visit https://apnews.com/hub/philanthropy.

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  • What a federal ban on THC-infused drinks and snacks could mean for the hemp industry

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    MINNEAPOLIS (AP) — The production lines at Indeed Brewing moved quickly, the cans filling not with beer, but with THC-infused seltzer. The product, which features the compound that gets cannabis users high, has been a lifeline at Indeed and other craft breweries as alcohol sales have fallen in recent years.

    But that boom looks set to come to a crashing halt. Buried in the bill that ended the federal government shutdown this month was a provision to ban those drinks, along with other impairing beverages and snacks made from hemp, which have proliferated across the country in recent years. Now the $24 billion hemp industry is scrambling to save itself before the provision takes effect in November 2026.

    “It’s a big deal,” said Ryan Bandy, Indeed’s chief business officer. “It would be a mess for our breweries, for our industry, and obviously for a lot of people who like these things.”

    Here’s what to know about the looming ban on impairing products derived from hemp.

    Congress opened the door in 2018

    Marijuana and hemp are the same species. Marijuana is cultivated for high levels of THC in its flowers. Low-THC hemp is grown for its sturdy fibers, food or wellness products. “Rope, not dope” was long the motto of farmers who supported legalizing hemp.

    After states began legalizing marijuana for adult use over a decade ago, hemp advocates saw an opening at the federal level. As part of the 2018 farm bill, Congress legalized the cultivation of industrial hemp to give farmers, including in Republican Sen. Mitch McConnell’s home state of Kentucky, a new cash crop.

    But the way that law defined hemp — as having less than 0.3% of a specific type of THC, called delta-9 — opened a huge loophole. Beverages or bags of snacks could meet that threshold and still contain more than enough THC to get people high. Businesses could further exploit the law by extracting a non-impairing compound, called CBD, and chemically changing it into other types of impairing THC, such as delta-8 or delta-10.

    The result? Vape oil, gummy candies, chips, cookies, sodas and other unregulated, untested products laden with hemp-derived THC spread around the country. In many places, they have been available at gas stations or convenience stores, even to teens. In legal marijuana states, they undercut heavily taxed and regulated products. In others, they evaded the prohibition on recreational use of weed.

    Some states, including Indiana, have reported spikes in calls to poison-control centers for pediatric exposure to THC.

    A patchwork of state regulations

    Dozens of states have since taken steps to regulate or ban impairing hemp products. In October, Democratic California Gov. Gavin Newsom signed a bill banning the sale of intoxicating hemp products outside the state’s legal marijuana system.

    Texas, which has a massive hemp market, is moving to regulate sales of impairing hemp, such as by restricting them to those over 21. In Nebraska, lawmakers have instead considered a bill to criminalize the sale and possession of products containing hemp-based THC.

    Washington state adopted a program to regulate hemp growing. But the number of licensed growers has cratered since the state banned intoxicating hemp products outside of the regulated cannabis market in 2023. Five years ago, there were 220, said Trecia Ehrlich, cannabis program manager with the state agriculture department. This year, there were 42, and with a federal ban looming, she expects that number to drop by about half next year.

    Minnesota made infused beverages and foods legal in 2022 for people 21 and older. The products, which must be derived from legally certified hemp, have become so popular that Target is now offering THC drinks at some of its stores in the state.

    They’ve also been a boon to liquor stores and to small Minneapolis brewers like Indeed, where THC drinks make up close to one-quarter of the business, Bandy said. At Bauhaus Brew Labs, a few blocks away, THC drinks account for 26% of their revenues from distributed products and 11% of revenues at the brewery’s taproom.

    A powerful senator moves to close the loophole

    None of that was what McConnell intended when he helped craft the 2018 farm bill. He finally closed the loophole by inserting a federal hemp THC ban in the measure to end the 43-day federal government shutdown, approved by the Senate on Nov. 10.

    “It will keep these dangerous products out of the hands of children, while preserving the hemp industry for farmers,” McConnell said. “Industrial hemp and CBD will remain legal for industrial applications.”

    Some in the legal marijuana industry celebrated, as the ban would end what they consider unfair competition.

    They were joined by prohibitionists. “There’s really no good argument for allowing these dangerous products to be sold in our country,” said Kevin Sabet, president and CEO of Smart Approaches to Marijuana.

    But the ban doesn’t take effect for a year. That has given the industry hope that there is still time to pass regulations that will improve the hemp THC industry — such as by banning synthetically derived THC, requiring age restrictions on sales, and prohibiting marketing to children — rather than eradicate it.

    “We are very hopeful that cooler heads will prevail,” said Jonathan Miller, general counsel of the industry group U.S. Hemp Roundtable. “If they really thought there was a health emergency, there would be no year-long period.”

    The federal ban would jeopardize more than 300,000 jobs while costing states $1.5 billion in lost tax money, the group says.

    Drew Hurst, president and chief operating officer at Bauhaus Brew Labs, has no doubt his company would be among the casualties.

    “If this goes through as written currently, I don’t see a way at all that Bauhaus could stay in business,” Hurst said.

    What comes next?

    A number of lawmakers say they will push for regulation of the hemp THC industry. Kentucky’s second senator, Republican Rand Paul, introduced an amendment to strip McConnell’s hemp language from the crucial government-funding bill, but it failed on a lopsided 76-24 vote.

    Minnesota’s Democratic U.S. senators, Amy Klobuchar and Tina Smith, are among those strategizing to save the industry. Klobuchar noted at a recent news conference that the ban was inserted into the unrelated shutdown bill without a hearing. She suggested the federal government could allow states to develop their own regulatory frameworks, or that Minnesota’s strict regulations could be used as a national model.

    Kevin Hilliard, co-founder of Insight Brewing in Minneapolis, said the hemp industry needs a solution before planting time next spring.

    “If a farmer has uncertainty, they’re not going to plant,” Hilliard said.

    ___

    Johnson reported from Seattle. AP congressional reporter Kevin Freking contributed from Washington, D.C.

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  • What to know about federal ban threatening market for THC-infused drinks and snacks

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    MINNEAPOLIS — The production lines at Indeed Brewing moved quickly, the cans filling not with beer, but with THC-infused seltzer. The product, which features the compound that gets cannabis users high, has been a lifeline at Indeed and other craft breweries as alcohol sales have fallen in recent years.

    But that boom looks set to come to a crashing halt. Buried in the bill that ended the federal government shutdown this month was a provision to ban those drinks, along with other impairing beverages and snacks made from hemp, which have proliferated across the country in recent years. Now the $24 billion hemp industry is scrambling to save itself before the provision takes effect in November 2026.

    “It’s a big deal,” said Ryan Bandy, Indeed’s chief business officer. “It would be a mess for our breweries, for our industry, and obviously for a lot of people who like these things.”

    Here’s what to know about the looming ban on impairing products derived from hemp.

    Marijuana and hemp are the same species. Marijuana is cultivated for high levels of THC in its flowers. Low-THC hemp is grown for its sturdy fibers, food or wellness products. “Rope, not dope” was long the motto of farmers who supported legalizing hemp.

    After states began legalizing marijuana for adult use over a decade ago, hemp advocates saw an opening at the federal level. As part of the 2018 farm bill, Congress legalized the cultivation of industrial hemp to give farmers, including in Republican Sen. Mitch McConnell’s home state of Kentucky, a new cash crop.

    But the way that law defined hemp — as having less than 0.3% of a specific type of THC, called delta-9 — opened a huge loophole. Beverages or bags of snacks could meet that threshold and still contain more than enough THC to get people high. Businesses could further exploit the law by extracting a non-impairing compound, called CBD, and chemically changing it into other types of impairing THC, such as delta-8 or delta-10.

    The result? Vape oil, gummy candies, chips, cookies, sodas and other unregulated, untested products laden with hemp-derived THC spread around the country. In many places, they have been available at gas stations or convenience stores, even to teens. In legal marijuana states, they undercut heavily taxed and regulated products. In others, they evaded the prohibition on recreational use of weed.

    Some states, including Indiana, have reported spikes in calls to poison-control centers for pediatric exposure to THC.

    Dozens of states have since taken steps to regulate or ban impairing hemp products. In October, Democratic California Gov. Gavin Newsom signed a bill banning the sale of intoxicating hemp products outside the state’s legal marijuana system.

    Texas, which has a massive hemp market, is moving to regulate sales of impairing hemp, such as by restricting them to those over 21. In Nebraska, lawmakers have instead considered a bill to criminalize the sale and possession of products containing hemp-based THC.

    Washington state adopted a program to regulate hemp growing. But the number of licensed growers has cratered since the state banned intoxicating hemp products outside of the regulated cannabis market in 2023. Five years ago, there were 220, said Trecia Ehrlich, cannabis program manager with the state agriculture department. This year, there were 42, and with a federal ban looming, she expects that number to drop by about half next year.

    Minnesota made infused beverages and foods legal in 2022 for people 21 and older. The products, which must be derived from legally certified hemp, have become so popular that Target is now offering THC drinks at some of its stores in the state.

    They’ve also been a boon to liquor stores and to small Minneapolis brewers like Indeed, where THC drinks make up close to one-quarter of the business, Bandy said. At Bauhaus Brew Labs, a few blocks away, THC drinks account for 26% of their revenues from distributed products and 11% of revenues at the brewery’s taproom.

    None of that was what McConnell intended when he helped craft the 2018 farm bill. He finally closed the loophole by inserting a federal hemp THC ban in the measure to end the 43-day federal government shutdown, approved by the Senate on Nov. 10.

    “It will keep these dangerous products out of the hands of children, while preserving the hemp industry for farmers,” McConnell said. “Industrial hemp and CBD will remain legal for industrial applications.”

    Some in the legal marijuana industry celebrated, as the ban would end what they consider unfair competition.

    They were joined by prohibitionists. “There’s really no good argument for allowing these dangerous products to be sold in our country,” said Kevin Sabet, president and CEO of Smart Approaches to Marijuana.

    But the ban doesn’t take effect for a year. That has given the industry hope that there is still time to pass regulations that will improve the hemp THC industry — such as by banning synthetically derived THC, requiring age restrictions on sales, and prohibiting marketing to children — rather than eradicate it.

    “We are very hopeful that cooler heads will prevail,” said Jonathan Miller, general counsel of the industry group U.S. Hemp Roundtable. “If they really thought there was a health emergency, there would be no year-long period.”

    The federal ban would jeopardize more than 300,000 jobs while costing states $1.5 billion in lost tax money, the group says.

    Drew Hurst, president and chief operating officer at Bauhaus Brew Labs, has no doubt his company would be among the casualties.

    “If this goes through as written currently, I don’t see a way at all that Bauhaus could stay in business,” Hurst said.

    A number of lawmakers say they will push for regulation of the hemp THC industry. Kentucky’s second senator, Republican Rand Paul, introduced an amendment to strip McConnell’s hemp language from the crucial government-funding bill, but it failed on a lopsided 76-24 vote.

    Minnesota’s Democratic U.S. senators, Amy Klobuchar and Tina Smith, are among those strategizing to save the industry. Klobuchar noted at a recent news conference that the ban was inserted into the unrelated shutdown bill without a hearing. She suggested the federal government could allow states to develop their own regulatory frameworks, or that Minnesota’s strict regulations could be used as a national model.

    Kevin Hilliard, co-founder of Insight Brewing in Minneapolis, said the hemp industry needs a solution before planting time next spring.

    “If a farmer has uncertainty, they’re not going to plant,” Hilliard said.

    ___

    Johnson reported from Seattle. AP congressional reporter Kevin Freking contributed from Washington, D.C.

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  • Here’s what to know about the federal ban threatening the market for THC-infused drinks and snacks

    [ad_1]

    MINNEAPOLIS — The production lines at Indeed Brewing moved quickly, the cans filling not with beer, but with THC-infused seltzer. The product, which features the compound that gets cannabis users high, has been a lifeline at Indeed and other craft breweries as alcohol sales have fallen in recent years.

    But that boom looks set to come to a crashing halt. Buried in the bill that ended the federal government shutdown this month was a provision to ban those drinks, along with other impairing beverages and snacks made from hemp, which have proliferated across the country in recent years. Now the $24 billion hemp industry is scrambling to save itself before the provision takes effect in November 2026.

    “It’s a big deal,” said Ryan Bandy, Indeed’s chief business officer. “It would be a mess for our breweries, for our industry, and obviously for a lot of people who like these things.”

    Here’s what to know about the looming ban on impairing products derived from hemp.

    Marijuana and hemp are the same species. Marijuana is cultivated for high levels of THC in its flowers. Low-THC hemp is grown for its sturdy fibers, food or wellness products. “Rope, not dope” was long the motto of farmers who supported legalizing hemp.

    After states began legalizing marijuana for adult use over a decade ago, hemp advocates saw an opening at the federal level. As part of the 2018 farm bill, Congress legalized the cultivation of industrial hemp to give farmers, including in Republican Sen. Mitch McConnell’s home state of Kentucky, a new cash crop.

    But the way that law defined hemp — as having less than 0.3% of a specific type of THC, called delta-9 — opened a huge loophole. Beverages or bags of snacks could meet that threshold and still contain more than enough THC to get people high. Businesses could further exploit the law by extracting a non-impairing compound, called CBD, and chemically changing it into other types of impairing THC, such as delta-8 or delta-10.

    The result? Vape oil, gummy candies, chips, cookies, sodas and other unregulated, untested products laden with hemp-derived THC spread around the country. In many places, they have been available at gas stations or convenience stores, even to teens. In legal marijuana states, they undercut heavily taxed and regulated products. In others, they evaded the prohibition on recreational use of weed.

    Some states, including Indiana, have reported spikes in calls to poison-control centers for pediatric exposure to THC.

    Dozens of states have since taken steps to regulate or ban impairing hemp products. In October, Democratic California Gov. Gavin Newsom signed a bill banning the sale of intoxicating hemp products outside the state’s legal marijuana system.

    Texas, which has a massive hemp market, is moving to regulate sales of impairing hemp, such as by restricting them to those over 21. In Nebraska, lawmakers have instead considered a bill to criminalize the sale and possession of products containing hemp-based THC.

    Washington state adopted a program to regulate hemp growing. But the number of licensed growers has cratered since the state banned intoxicating hemp products outside of the regulated cannabis market in 2023. Five years ago, there were 220, said Trecia Ehrlich, cannabis program manager with the state agriculture department. This year, there were 42, and with a federal ban looming, she expects that number to drop by about half next year.

    Minnesota made infused beverages and foods legal in 2022 for people 21 and older. The products, which must be derived from legally certified hemp, have become so popular that Target is now offering THC drinks at some of its stores in the state.

    They’ve also been a boon to liquor stores and to small Minneapolis brewers like Indeed, where THC drinks make up close to one-quarter of the business, Bandy said. At Bauhaus Brew Labs, a few blocks away, THC drinks account for 26% of their revenues from distributed products and 11% of revenues at the brewery’s taproom.

    None of that was what McConnell intended when he helped craft the 2018 farm bill. He finally closed the loophole by inserting a federal hemp THC ban in the measure to end the 43-day federal government shutdown, approved by the Senate on Nov. 10.

    “It will keep these dangerous products out of the hands of children, while preserving the hemp industry for farmers,” McConnell said. “Industrial hemp and CBD will remain legal for industrial applications.”

    Some in the legal marijuana industry celebrated, as the ban would end what they consider unfair competition.

    They were joined by prohibitionists. “There’s really no good argument for allowing these dangerous products to be sold in our country,” said Kevin Sabet, president and CEO of Smart Approaches to Marijuana.

    But the ban doesn’t take effect for a year. That has given the industry hope that there is still time to pass regulations that will improve the hemp THC industry — such as by banning synthetically derived THC, requiring age restrictions on sales, and prohibiting marketing to children — rather than eradicate it.

    “We are very hopeful that cooler heads will prevail,” said Jonathan Miller, general counsel of the industry group U.S. Hemp Roundtable. “If they really thought there was a health emergency, there would be no year-long period.”

    The federal ban would jeopardize more than 300,000 jobs while costing states $1.5 billion in lost tax money, the group says.

    Drew Hurst, president and chief operating officer at Bauhaus Brew Labs, has no doubt his company would be among the casualties.

    “If this goes through as written currently, I don’t see a way at all that Bauhaus could stay in business,” Hurst said.

    A number of lawmakers say they will push for regulation of the hemp THC industry. Kentucky’s second senator, Republican Rand Paul, introduced an amendment to strip McConnell’s hemp language from the crucial government-funding bill, but it failed on a lopsided 76-24 vote.

    Minnesota’s Democratic U.S. senators, Amy Klobuchar and Tina Smith, are among those strategizing to save the industry. Klobuchar noted at a recent news conference that the ban was inserted into the unrelated shutdown bill without a hearing. She suggested the federal government could allow states to develop their own regulatory frameworks, or that Minnesota’s strict regulations could be used as a national model.

    Kevin Hilliard, co-founder of Insight Brewing in Minneapolis, said the hemp industry needs a solution before planting time next spring.

    “If a farmer has uncertainty, they’re not going to plant,” Hilliard said.

    ___

    Johnson reported from Seattle. AP congressional reporter Kevin Freking contributed from Washington, D.C.

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  • US retailers are about to see if Black Friday benefits from a holiday halo effect

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    NEW YORK — NEW YORK (AP) — Black Friday bargains no longer tempt people to leave Thanksgiving tables for midnight mall runs. Brawls in store aisles over toys and TVs with limited-time discounts are spectacles of holidays past. Online shopping and retailers launching discounts weeks before the turkey feast subdued that kind of fervor.

    But the sales event still has enough enthusiasts to make the day after Thanksgiving the one when U.S. stores get the most shoppers coming in the door. For that reason, Black Friday still rules as the unofficial start of the holiday shopping season.

    This year’s kickoff comes as consumer confidence in the U.S. economy fell this month in the aftermath of the federal government shutdown, weak hiring and stubborn inflation, according to a report The Conference Board issued Tuesday.

    Many retail executives have reported customers becoming more discerning and increasingly focused on deals while at the same time remaining willing to splash out for important occasions like the start of the school year and the winter holidays, creating a halo effect.

    “Consumers have been saying the economy is terrible while continuing to spend for years now, so the outlook is probably better than they are telling us,” Bill Adams, the chief economist at Comerica Bank, said this week of shoppers’ moods heading into Black Friday. “But business surveys also report consumers are being more sensitive to prices and selective in spending.”

    While planning for the holidays in the spring and summer, retail companies were wrestling with the volatility of President Donald Trump ’s wide-ranging tariffs on imported goods. Many accelerated shipments of some merchandise before the tariffs took effect or decided to absorb some of the import tax costs instead of raising prices for customers.

    Market research firm Circana said that 40% of all general merchandise sold in September saw a price increase of at least 5% compared with the first four months of the year.

    Toys, baby products, housewares, and team sports equipment were among the hardest hit categories. For example, 83% of toys sold in September saw an increase of at least 5%, Circana said. Industry group The Toy Association says nearly 80% of the toys sold in the U.S. are made in China, a country the Trump administration hit with especially high tariffs at various points this year.

    Still, analysts and mall executives cited solid momentum heading into Black Friday week. At the Mall of America in Bloomington, Minnesota, foot traffic in recent weeks surpassed the numbers from pre-pandemic 2019, said Jill Renslow, the mall’s chief business development and marketing officer.

    “We’re seeing a very positive start to the holiday season,” Renslow said. “The last few Saturdays in November have been very strong.”

    The growth in online sales also has been robust so far. From Nov. 1 to Nov. 23, consumers spent $79.7 billion, according to web tracking and analysis platform Adobe Analytics. That represented a gain of 7.5% from a year earlier and was bigger than Adobe’s 5.3% growth forecast for the season.

    Mastercard SpendingPulse, which tracks spending across all payment methods, predicted a 3.6% increase in holiday sales from Nov. 1 through Dec. 24. That compares with a 4.1% increase last year.

    “Clearly, there’s uncertainty,” Mastercard Chief Economist Michelle Meyer said. “Clearly, consumers feel on edge. But at the moment, it doesn’t seem like it’s changing how they are showing up for this season.”

    According to Adobe Analytics, Thanksgiving Day was the best time to shop online to get the deepest discount on sporting goods. But Black Friday will be the best time to buy TVs, toys and appliances online.

    Cyber Monday, however, should be the best time to buy apparel and computers. Apparel discounts peaked at 12.2% off the suggested manufacturer’s price between Nov. 1 and Nov. 23 but are expected to hit 25% off on Cyber Monday, Adobe said.

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  • US retailers are about to see if Black Friday benefits from a holiday halo effect

    [ad_1]

    NEW YORK — NEW YORK (AP) — Black Friday bargains no longer tempt people to leave Thanksgiving tables for midnight mall runs. Brawls in store aisles over toys and TVs with limited-time discounts are spectacles of holidays past. Online shopping and retailers launching discounts weeks before the turkey feast subdued that kind of fervor.

    But the sales event still has enough enthusiasts to make the day after Thanksgiving the one when U.S. stores get the most shoppers coming in the door. For that reason, Black Friday still rules as the unofficial start of the holiday shopping season.

    This year’s kickoff comes as consumer confidence in the U.S. economy fell this month in the aftermath of the federal government shutdown, weak hiring and stubborn inflation, according to a report The Conference Board issued Tuesday.

    Many retail executives have reported customers becoming more discerning and increasingly focused on deals while at the same time remaining willing to splash out for important occasions like the start of the school year and the winter holidays, creating a halo effect.

    “Consumers have been saying the economy is terrible while continuing to spend for years now, so the outlook is probably better than they are telling us,” Bill Adams, the chief economist at Comerica Bank, said this week of shoppers’ moods heading into Black Friday. “But business surveys also report consumers are being more sensitive to prices and selective in spending.”

    While planning for the holidays in the spring and summer, retail companies were wrestling with the volatility of President Donald Trump ’s wide-ranging tariffs on imported goods. Many accelerated shipments of some merchandise before the tariffs took effect or decided to absorb some of the import tax costs instead of raising prices for customers.

    Market research firm Circana said that 40% of all general merchandise sold in September saw a price increase of at least 5% compared with the first four months of the year.

    Toys, baby products, housewares, and team sports equipment were among the hardest hit categories. For example, 83% of toys sold in September saw an increase of at least 5%, Circana said. Industry group The Toy Association says nearly 80% of the toys sold in the U.S. are made in China, a country the Trump administration hit with especially high tariffs at various points this year.

    Still, analysts and mall executives cited solid momentum heading into Black Friday week. At the Mall of America in Bloomington, Minnesota, foot traffic in recent weeks surpassed the numbers from pre-pandemic 2019, said Jill Renslow, the mall’s chief business development and marketing officer.

    “We’re seeing a very positive start to the holiday season,” Renslow said. “The last few Saturdays in November have been very strong.”

    The growth in online sales also has been robust so far. From Nov. 1 to Nov. 23, consumers spent $79.7 billion, according to web tracking and analysis platform Adobe Analytics. That represented a gain of 7.5% from a year earlier and was bigger than Adobe’s 5.3% growth forecast for the season.

    Mastercard SpendingPulse, which tracks spending across all payment methods, predicted a 3.6% increase in holiday sales from Nov. 1 through Dec. 24. That compares with a 4.1% increase last year.

    “Clearly, there’s uncertainty,” Mastercard Chief Economist Michelle Meyer said. “Clearly, consumers feel on edge. But at the moment, it doesn’t seem like it’s changing how they are showing up for this season.”

    According to Adobe Analytics, Thanksgiving Day was the best time to shop online to get the deepest discount on sporting goods. But Black Friday will be the best time to buy TVs, toys and appliances online.

    Cyber Monday, however, should be the best time to buy apparel and computers. Apparel discounts peaked at 12.2% off the suggested manufacturer’s price between Nov. 1 and Nov. 23 but are expected to hit 25% off on Cyber Monday, Adobe said.

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  • IPO market’s red-hot year has been cooled by the shutdown and more caution among investors

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    NEW YORK (AP) — A strong year for initial public offerings on Wall Street has fizzled out due to the government shutdown and a cautious turn by investors.

    Many IPOs targeted for the end of this year will likely be pushed into next year as the Securities and Exchange Commission works to clear a backlog of hundreds of registration statements. Meanwhile, shares of companies that did make their market debuts haven’t fared well lately amid concerns that stocks have gotten too expensive after another double-digit gain for the market this year.

    “A backlogged SEC, the approaching holiday slowdown, and pressure on AI and other tech stocks are all weighing on hopes for a near-term rebound,” wrote Bill Smith, CEO of Renaissance Capital, in a note to investors.

    Despite the backlog, Wall Street is still anticipating several IPOs in November and December that were already in the later stages of the regulatory process.

    Central Bancompany was one of the bigger companies going public following the end of the government shutdown. The bank holding company for The Central Trust Bank raised $373 million from its IPO on Thursday. Still, November is on track to be among the slowest months for IPOs in 2025, according to Renaissance Capital.

    Wall Street anticipates that medical supplies company Medline could go public in December, potentially raising up to $5 billion, while cryptocurrency technology company BitGo remains another potential IPO for next month.

    The more cautious turn for the market has also checked the gains of some more recent IPOs, sending some falling sharply since their debuts.

    Web design software company Figma has essentially lost all its gains since going public in July. It more than tripled on its first day of trading after pricing at $33 per share. It is now trading slightly above the IPO price.

    Klarna, the Swedish buy now, pay later company priced its IPO at $40 per share in September and is currently trading close to $29 per share. Cloud computing company CoreWeave also priced its IPO at $40 per share, in March. It surged in the months following its IPO, but has pulled back significantly to about $72 per share.

    Software company Navan went public at $25 per share in the midst of the government shutdown but failed to gain much ground and is now trading at about $15.

    The benchmark S&P 500 is having a bleak November. It’s down 3.5% for the month, with much of that decline being led by the tech sector, which had been driven higher by enthusiasm over developments in artificial intelligence. Wall Street has grown more concerned about whether the gains have been justified.

    The S&P 500 is still up more than 12% for the year and the tech-heavy Nasdaq is up more than 15%.

    Renaissance Capital’s IPO Index is down about nearly 0.8% so far this year as of Friday and has been falling against the S&P 500 since mid-October.

    “What that shows is that investors very quickly monetized, they didn’t want to take the long-term risk,” said Samuel Kerr, head of global equity capital markets at Mergermarket.

    Still, overall demand for IPOs remains strong. Even with the recent pullback, the broader market remains expensive, especially within the influential technology sector. IPOs have traditionally been another way for investors to get into the market at a less expensive entry point.

    “Increasingly, as a money manager, you have to find other places to make money and typically, IPOs are that place,” said, David Kaufman, partner and co-chair of the corporate & securities practice at Thompson Coburn LLP. “You continue to have all these large mutual funds and money managers with excess cash and no place to put this cash.”

    The broader market’s direction in the new year will determine the costs and types of IPOs. Some of the more anticipated big tech names that could go public in 2026 include AI-focused software company Databricks and graphic design app Canva. Wall Street also considers financial technology Plaid as another possible 2026 IPO.

    Any visible lull in IPO activity through the rest of the year is partially masking a flurry of activity beneath the surface as companies go through the regulatory process.

    “It’s a busy time for lawyers and bankers trying to tee things up for the first and second quarter of next year,” Kaufman said.

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  • IPO market’s red-hot year has been cooled by the shutdown and more caution among investors

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    NEW YORK — A strong year for initial public offerings on Wall Street has fizzled out due to the government shutdown and a cautious turn by investors.

    Many IPOs targeted for the end of this year will likely be pushed into next year as the Securities and Exchange Commission works to clear a backlog of hundreds of registration statements. Meanwhile, shares of companies that did make their market debuts haven’t fared well lately amid concerns that stocks have gotten too expensive after another double-digit gain for the market this year.

    “A backlogged SEC, the approaching holiday slowdown, and pressure on AI and other tech stocks are all weighing on hopes for a near-term rebound,” wrote Bill Smith, CEO of Renaissance Capital, in a note to investors.

    Despite the backlog, Wall Street is still anticipating several IPOs in November and December that were already in the later stages of the regulatory process.

    Central Bancompany was one of the bigger companies going public following the end of the government shutdown. The bank holding company for The Central Trust Bank raised $373 million from its IPO on Thursday. Still, November is on track to be among the slowest months for IPOs in 2025, according to Renaissance Capital.

    Wall Street anticipates that medical supplies company Medline could go public in December, potentially raising up to $5 billion, while cryptocurrency technology company BitGo remains another potential IPO for next month.

    The more cautious turn for the market has also checked the gains of some more recent IPOs, sending some falling sharply since their debuts.

    Web design software company Figma has essentially lost all its gains since going public in July. It more than tripled on its first day of trading after pricing at $33 per share. It is now trading slightly above the IPO price.

    Klarna, the Swedish buy now, pay later company priced its IPO at $40 per share in September and is currently trading close to $29 per share. Cloud computing company CoreWeave also priced its IPO at $40 per share, in March. It surged in the months following its IPO, but has pulled back significantly to about $72 per share.

    Software company Navan went public at $25 per share in the midst of the government shutdown but failed to gain much ground and is now trading at about $15.

    The benchmark S&P 500 is having a bleak November. It’s down 3.5% for the month, with much of that decline being led by the tech sector, which had been driven higher by enthusiasm over developments in artificial intelligence. Wall Street has grown more concerned about whether the gains have been justified.

    The S&P 500 is still up more than 12% for the year and the tech-heavy Nasdaq is up more than 15%.

    Renaissance Capital’s IPO Index is down about nearly 0.8% so far this year as of Friday and has been falling against the S&P 500 since mid-October.

    “What that shows is that investors very quickly monetized, they didn’t want to take the long-term risk,” said Samuel Kerr, head of global equity capital markets at Mergermarket.

    Still, overall demand for IPOs remains strong. Even with the recent pullback, the broader market remains expensive, especially within the influential technology sector. IPOs have traditionally been another way for investors to get into the market at a less expensive entry point.

    “Increasingly, as a money manager, you have to find other places to make money and typically, IPOs are that place,” said, David Kaufman, partner and co-chair of the corporate & securities practice at Thompson Coburn LLP. “You continue to have all these large mutual funds and money managers with excess cash and no place to put this cash.”

    The broader market’s direction in the new year will determine the costs and types of IPOs. Some of the more anticipated big tech names that could go public in 2026 include AI-focused software company Databricks and graphic design app Canva. Wall Street also considers financial technology Plaid as another possible 2026 IPO.

    Any visible lull in IPO activity through the rest of the year is partially masking a flurry of activity beneath the surface as companies go through the regulatory process.

    “It’s a busy time for lawyers and bankers trying to tee things up for the first and second quarter of next year,” Kaufman said.

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  • U.S. employers added surprisingly solid 119,000 jobs in September, government says in delayed report

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    WASHINGTON — U.S. employers added a surprisingly solid 119,000 jobs in September, the government said, issuing a key economic report that had been delayed for seven weeks by the federal government shutdown.

    The unemployment rate rose to 4.4% in September, highest since October 2021 and up from 4.3% in August, the Labor Department said Thursday. The unemployment rate rose partly because 470,000 people entered the labor market — either working or looking for work — in September and not all of them found jobs right away.

    The increase in payrolls was more than double the 50,000 economists had forecast. But Labor Department revisions showed that the economy lost 4,000 jobs in August instead of gaining 22,000 as originally reported. Altogether, revisions shaved 33,000 jobs off July and August payrolls.

    Healthcare and social assistance firms added more than 57,000 jobs in September, construction companies 19,000 and retailers almost 14,000. But factories shed 6,000 jobs and the federal government lost 3,000.

    Average hourly wages rose just 0.2% from August and 3.8% from a year earlier, edging closer to the 3.5% year-over-year increase that the Federal Reserve’s inflation fighters like to see.

    During the 43-day U.S. government shutdown, investors, businesses, policymakers and the Federal Reserve were groping in the dark for clues about the health of the American job market because federal workers had been furloughed and couldn’t collect the data.

    The report comes at a time of considerable uncertainty about the economy. The job market has been strained by the lingering effects of high interest rates and uncertainty around Trump’s erratic campaign to slap taxes on imports from almost every country on earth. But economic growth at midyear was resilient.

    Fed policymakers are divided over whether to cut interest rates for the third time this year when they meet next month.

    Economists expected to see a continuation of what was happening in the spring and summer: weak hiring but few layoffs, an awkward pairing that means Americans who have work mostly enjoy job security – but those who don’t often struggle to find employment.

    The job market has been strained this year by the lingering effects of high interest rates engineered to fight a 2021-2022 spike in inflation and uncertainty around Trump’s campaign to slap taxes on imports from almost every country on earth and on specific products — from copper to foreign films.

    Labor Department revisions in September showed that the economy created 911,000 fewer jobs than originally reported in the year that ended in March. That meant that employers added an average of just 71,000 new jobs a month over that period, not the 147,000 first reported.

    Since March, job creation has slowed even more — to an average 53,000 a month. During the 2021-2023 hiring boom that followed COVID-19 lockdowns, by contrast, the economy was creating 400,000 jobs a month.

    President Donald Trump’s crackdown on illegal immigration is expected to reduce the number of people looking for work, which means that the economy can create fewer jobs without sending the unemployment rate higher.

    With September numbers out, businesses, investors, policymakers and the Fed will have to wait awhile to get another good look at the numbers behind the American labor market.

    The Labor Department said Wednesday that it won’t won’t release a full jobs report for October because it couldn’t calculate the unemployment rate during the government shutdown.

    Instead, it will release some of the October jobs data — including the number of jobs that employers created last month — along with the full November jobs report on Dec. 16, a couple of weeks late.

    That puts an even more intense focus on September jobs numbers released Thursday. They are the last full measurement of hiring and unemployment that Fed policymakers will see before they meet Dec. 9-10 to decide whether to cut their benchmark interest rate for the third time this year.

    ____

    AP Economics Writer Christopher Rugaber contributed to this report.

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  • Government will release September jobs report next week

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    WASHINGTON — The Labor Department will release its numbers on September hiring and unemployment next Thursday, a month and a half late, marking the beginning of the end of a data drought caused by the 43-day federal government shutdown.

    The statistical blackout meant that the Federal Reserve, businesses, policymakers and investors have largely been in the dark about inflation, job creation, GDP growth and other measures of the U.S. economic health since late summer.

    Thomas Simons and Michael Bacolas at Jefferies, a financial firm, wrote in a commentary Friday that over 30 reports from the Labor Department’s Bureau of Labor Statistics and the Commerce Department’s Bureau of Economic Analysis and Census Bureau were delayed by the political standoff.

    The Labor Department did not release its weekly report on the number of Americans signing up for unemployment benefits for seven straight weeks. That jobless claims report is seen as a potential early indicator of where the labor market is headed.

    The Labor Department did release its consumer price index for September — the most popular measurement of inflation — nine days late on Oct. 24. The government made an exception for that report because of its urgency: It is used to calculate the annual cost of living adjustment for tens of millions of Americans receiving Social Security and other federal benefits.

    The interruption of federal economic statistics came at an awkward time. President Donald Trump’s policies — sweeping, ever-changing import taxes and massive deportations of people working in the United States illegally — are creating uncertainty about the economic outlook.

    And the economy has sent conflicting signals: Economic growth looked solid at midyear and unemployment has been low. But job growth has lost momentum, and inflation has remained stubbornly above the Federal Reserve’s 2% target, partly because of the impact of Trump’s tariffs.

    Jefferies’ Simons expects the September employment report to show that employers added 65,000 jobs that month — unimpressive, but up from a meager 22,000 in August. He figures that unemployment remained at a low 4.3%.

    The data cutoff has caused consternation on Wall Street and deepened divisions among Fed officials over whether to cut interest rates for a third straight time at their next meeting in December.

    This week, some Fed policymakers have suggested that a lack of data is one reason they may support holding off on another rate cut.

    As a result, fresh reports on jobs and inflation in the coming weeks and months will carry huge weight at the Fed because new numbers could help resolve disagreements between those who support another interest rate reduction and those who are opposed.

    Even with the government reopened, however, it could take a few more weeks for the data to fully recover. Earlier this week, Kevin Hassett, a top White House economist, said only a part of October’s jobs report — originally scheduled to be released Nov. 7 — will eventually be released.

    The Bureau of Labor Statistics will likely have enough data from businesses to calculate how many jobs were gained or lost last month. Much of that is submitted electronically. But a separate survey of households, which is used to calculate the unemployment rate, didn’t take place during the shutdown.

    As a result, for the first time in 77 years, the BLS may not calculate an unemployment rate for the month of October.

    Other White House officials have previously said there also won’t be an October inflation report, because the data couldn’t be gathered due to the government shutdown. That will pose a challenge for the Fed, which is seeking to determine whether inflation is headed back to 2%.

    The data interruption occurred just a couple of months after Trump fired the director of the BLS, Erika McEntarfer, after it produced employment figures Aug. 1 that he didn’t like. They showed only modest job gains in July and sharply smaller increases in May and June than previously estimated.

    Still, economists said the upcoming reports should be free from bias. Currently, there are no political appointees at the agency, after Trump withdrew his nominee to head the BLS Sept. 30.

    “The data are being produced by roughly the same set of people as in the past,” Aaron Sojourner, senior economist at the W.E. Upjohn Institute, said.

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  • Families brace for continued gaps in Head Start service despite government reopening

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    Vital federal funding is on the way for Head Start centers that were thrown into crisis by the government shutdown, but it could take time before some children who rely on the federal program can return to preschool.

    Some centers that missed out on federal payments had to furlough staff. Others had to shut down entirely, destabilizing thousands of needy families around the country. And operators fear it could take weeks more for overdue payments to be processed.

    Even when agencies receive long-delayed grant money, centers will have to rehire staff members and bring back families — both of which may have grown wary of instability in the program, which relies almost entirely on federal grants.

    “The damage has been done in a lot of ways,” Massachusetts Head Start Association Executive Director Michelle Haimowitz said. “We know that it’s going to take some time to fill back up.”

    About 140 Head Start programs representing 65,000 slots didn’t receive their annual grants during the 43-day shutdown, which concluded when President Donald Trump signed a government funding bill Wednesday night.

    Head Start serves children from low-income families from birth to age 5. The program offers a variety of services to families, such as early learning, support for children with disabilities, free meals and health screenings.

    With the shutdown over, the federal Office of Head Start will expedite funding and contact affected Head Start programs to share when they can expect federal money, said Emily Hilliard, a spokesperson for the U.S. Department of Health and Human Services, which oversees the program.

    Head Start operators anticipate that could take weeks.

    Federal workers are returning to “a mountain of work” that will take time to process, Haimowitz said. That doesn’t just include sending out missed grant awards — other paperwork for a range of technical issues has been delayed since layoffs at the Office of Head Start earlier this year, she said.

    “Those delays have just been piling up since April, with no fault to the existing civil servants at the Office of Head Start,” Haimowitz said. “They just have half the capacity that they had just a few months ago.”

    Families prepare for the worst-case scenario

    Depending on how quickly federal workers can send out funds, the backlog in grant renewals could spill over and affect Head Start agencies that are supposed to receive funding in December, operators said. Some of the families who attend those centers are already making preparations for that worst-case scenario.

    Gena Storer, who works as a home health aide in Xenia, Ohio, is trying to “make as much money as I possibly can” in case her daughter’s Head Start center closes. The center staff told parents hours before the government reopened that they still expect to shutter temporarily on Dec. 1 if funding is delayed, Storer said.

    If the center closes, Storer’s 4-year-old daughter, Zarina, will stay at home until it reopens. Storer will then need to adjust her work hours to make sure she can be home with Zarina while her fiance works 12-hour shifts at a Target distribution center.

    Uncertainty about SNAP federal food aid payments has also added stress for Storer’s family. Storer had been working extra hours through the shutdown to help provide for her 72-year-old mother, who also uses SNAP benefits.

    “If my mom didn’t have us to help her, what would she do?” the 31-year-old said.

    For Storer, Head Start has been more than a reliable option for child care. Zarina used to receive speech therapy to address her lack of speaking. But since starting Head Start in September, Storer said she’s noticed her daughter becoming more talkative and outgoing because she learns from having conversations with her classmates.

    Programs pay out-of-pocket to keep doors open

    Programs that stayed open without a guarantee of reimbursement by the federal government could also face further financial strains. At Louis Russ’ home day care in Knox County, Indiana, he and his wife are planning a pop-up toy shop out of their garage to offset money they might lose by staying open.

    Russ and his wife started operating a day care out of their home in April and partnered soon after with East Coast Migrant Head Start Project, a nonprofit that serves children of migrant farmworkers across 10 states. Six out of the eight children in Russ’ home day care are Head Start-funded.

    East Coast Migrant Head Start Project was one of the programs affected by a funding lapse, which resulted in more than 1,000 children being shut out of their centers. Russ and his wife also stopped receiving their Head Start payments at the end of October, but the decision to keep their home open was a “no brainer,” Russ said. Offering the children consistency during an otherwise unpredictable time was important to them, he said.

    “Staying open and keep taking the children we have, that was the easy part,” he said. “Figuring out how we’re going to stay open if this goes on too long, that’s the tricky part.”

    It’s been tense operating the program without knowing when funding will be released. Russ and his wife already took a pay cut, and they have another employee on the payroll. About three-quarters of their budget is payroll, Russ said, but other expenses like groceries and maintenance needs can stack up quickly without an income.

    “Our program, being so new, we were running pretty bare bones as is,” Russ said. “And especially in child care, which doesn’t have a huge profit margin, there’s only so much wiggle room when things like this happen.”

    ___

    The Associated Press’ education coverage receives financial support from multiple private foundations. AP is solely responsible for all content. Find AP’s standards for working with philanthropies, a list of supporters and funded coverage areas at AP.org.

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  • States scramble to send full SNAP food benefits

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    With the longest U.S. government shutdown over, state officials said Thursday they are working quickly to get full SNAP food benefits to millions of people who made do with little-to-no assistance for the past couple of weeks.

    A back-and-forth series of court rulings and shifting policies from President Donald Trump’s administration has led to a patchwork distribution of November benefits under the Supplemental Nutrition Assistance Program. While some states already had issued full SNAP benefits, about two-thirds of states had issued only partial benefits or none at all before the government shutdown ended late Wednesday, according to an Associated Press tally.


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    By GEOFF MULVIHILL and DAVID A. LIEB – Associated Press

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  • Republicans promised health care negotiations after the shutdown, but Democrats are wary

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    WASHINGTON — Now that the government shutdown is over, House and Senate Republicans say they will negotiate with Democrats on whether to extend COVID-era tax credits that help tens of millions of Americans afford their health care premiums. But finding bipartisan agreement could be difficult, if not impossible, before the subsidies expire at the end of the year.

    The shutdown ended this week after a small group of Democrats made a deal with Republicans senators who promised a vote by mid-December on extending the Affordable Care Act subsidies. But there is no guaranteed outcome, and many Republicans have made clear they want the credits to expire.

    House Speaker Mike Johnson, R-La., called the subsidies a “boondoggle” immediately after the House voted Wednesday to end the shutdown, and President Donald Trump said the Obama-era health overhaul was “disaster” as he signed the reopening bill into law.

    It is far from the outcome that Democrats had hoped for as they kept the government closed for 43 days, demanding that Republicans negotiate with them on an extension before premiums sharply increase. But they say they will try again as the expiration date approaches.

    “It remains to be seen if they are serious,” said House Democratic leader Hakeem Jeffries of New York. But he said Democrats “are just getting started.”

    Republicans have been meeting privately to discuss the issue. Some want to extend the subsidies, with changes, to avoid the widespread increases in premiums. Others, like Johnson and Trump, want to start a new conversation about overhauling “Obamacare” entirely — a redo after a similar effort in 2017 failed.

    Health care has long been one of the most difficult issues on Capitol Hill, marked by deep ideological and political divides. Partisan disagreement over 2010 law has persisted for more than a decade, and relationships are already strained from weeks of partisan tensions over the shutdown.

    Connecticut Rep. Rosa DeLauro, the top Democrat on the House Appropriations Committee, said that while Republicans have promised negotiations and a Senate vote, Democrats are wary. She noted that Johnson has not committed to anything in the House.

    “Do I trust any of them? Hell no,” DeLauro said.

    If the two sides cannot agree, as many as 24 million people who get their health care from the exchanges created by the law could see their premiums go up Jan. 1. New Hampshire Sen. Jeanne Shaheen, one of the Democrats who struck a deal with Senate Majority Leader John Thune, R-S.D., to reopen the government, said she thinks an agreement on the tax credits is possible.

    During the talks that led to the shutdown’s end, Shaheen said she and other moderate Democrats sat across from Thune and “looked him eye to eye” as he committed to a serious effort.

    “We’re going to have a chance to vote on a bill that we will write by mid-December, in a way that gives us a chance to build — hopefully build — bipartisan support to get that through,” Shaheen said.

    While Democrats would like to see a permanent extension of the tax credits, most realize that is unlikely. Just before the shutdown ended, Senate Democratic leader Chuck Schumer of New York proposed a one-year extension and a bipartisan committee to address Republican demands for changes to the ACA. But Thune said that was a “nonstarter” as the government remained shut down.

    In the House, Democrats have proposed a three-year extension.

    While Republicans have long sought to scrap Obamacare, they have had challenges over the years in figuring out what would replace it. That problem plagued the 2017 effort, when then-Sen. John McCain, R-Ariz., cast the deciding vote to kill a bill on the Senate floor that was short on detail.

    Republican Sen. Bill Cassidy of Louisiana, chairman of the Senate Health Education Labor and Pensions Committee, and Sen. Rick Scott, R-Fla., have proposed overhauling the law to create accounts that would direct the money to individuals instead of insurance companies. Those are ideas that Trump echoed as he signed the funding bill Wednesday evening.

    “I want the money to go directly to you, the people,” Trump said.

    It is unclear exactly how that would work, and scrapping the law in its current form would take months, if not years, to negotiate, even if Republicans could find the votes to do it.

    Some moderate Republicans in the House have said they want to work with Democrats to extend the subsidies before the deadline, which is only weeks away. In a letter to Thune and Schumer on Wednesday, Pennsylvania Rep. Brian Fitzpatrick, the Republican co-chair of the Bipartisan Problem Solvers Caucus, encouraged negotiations.

    “Our sense of urgency cannot be greater,” Fitzpatrick wrote. “Our willingness to cooperate has no limits.”

    So far, though, Senate Republicans have been meeting on their own to figure out their own differences.

    “Right now, it’s just getting consensus among ourselves,” Sen. Thom Tillis, R-N.C., said Monday after GOP members of the Senate Finance Committee met to discuss possible ways forward.

    Tillis is supportive of extending the tax credits, but said lawmakers also need to find a way to reduce costs. If the two sides cannot eventually agree, Tillis said, Republicans may have to try and figure out a way to do it on their own, potentially using budget maneuvers that enabled them to pass Trump’s “Big Beautiful Bill” this summer without any Democratic votes.

    “We should have that in our back pocket too,” Tillis said.

    Some House Democrats have raised the possibility that there could be another shutdown if they are unable to win concessions on health care. The bill signed by Trump will fully fund some parts of the government, but others run out of money again at the end of January if Congress does not act.

    “I think it depends on the vulnerable House Republicans who are not going to be able to go back to their constituents without telling them that they’ve done something on health care,” said Rep. Pramila Jayapal, D-Wash.

    “We’ll just have to see” if there could be another shutdown, said Rep. Mark Takano, D-Calif.

    Rep. Jim McGovern, D-Mass., said he is “not going to vote to endorse their cruelty” if Republicans do not extend the subsidies.

    DeLauro said that Republicans have wanted to repeal the ACA since it was first enacted. “That’s where they’re trying to go,” she said.

    “When it comes to January 30 we’ll see what progress has been made,” she said.

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  • While Trump threatens controllers, US flight cancellations will drag on even after shutdown ends

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    Air travelers should expect worsening cancellations and delays this week even if the government shutdown ends, as the Federal Aviation Administration rolls out deeper cuts to flights at 40 major U.S. airports, officials said Monday.

    The fourth day of the flight restrictions saw airlines scrap over 2,300 flights Monday and more than 1,000 flights set for takeoff Tuesday. Unpaid for more than a month, some air traffic controllers have begun calling out of work, citing stress and the need to take on second jobs.

    President Donald Trump took to social media on Monday to pressure controllers to “get back to work, NOW!!!” He called for a $10,000 bonus for those who’ve stayed on the job and suggested docking pay for those who haven’t.

    Rep. Rick Larsen, the top Democrat on the House Committee on Transportation and Infrastructure, and Sen. Tammy Duckworth, ranking member of the Senate’s Aviation Subcommittee, condemned the president’s remarks, saying controllers deserve appreciation and support — not attacks.

    The head of the controllers union says its members are being used as a “political pawn” in the shutdown fight.

    Meanwhile, the Senate passed legislation Monday to reopen the government, though the bill also needs to clear the House and final passage could be days away. Transportation Secretary Sean Duffy made clear last week that flight cuts will remain in place until the FAA sees staffing levels stabilize at its air traffic control facilities.

    And because the flight disruptions are widespread and ongoing, many planes aren’t where they’re supposed to be, which could also slow the airlines’ return to normal operations even after the FAA lifts the order, said Mike Taylor, who leads research on airports and airlines at J.D. Power.

    “If you think about it, there’s all these aircraft that didn’t fly where they were supposed to on a normal route,” Taylor said, noting airlines will need to track down all their planes, figure out where each needs to be, and find pilots and cabin crew for those flights.

    Since Friday, airlines have canceled about 8,000 flights under orders to drop 4% of flights at 40 of the nation’s busiest airports. That will rise to 6% on Tuesday and 10% by week’s end, the FAA says.

    One in 10 flights nationwide were scratched Sunday — the fourth worst day for cancellations in almost two years, according aviation analytics firm Cirium.

    Controller shortages also led to five-hour delays Monday evening at Chicago O’Hare International Airport, where wintry weather added to the disruptions earlier in the day, and the FAA warned that staffing at over a dozen towers and control centers could cause delays in cities including Philadelphia, Nashville and Atlanta.

    That leaves travelers growing angry.

    “All of this has real negative consequences for millions of Americans, and it’s 100% unnecessary and avoidable,” said Todd Walker, who missed his mom’s 80th birthday when his flight was canceled over the weekend.

    The FAA also expanded flight restrictions Monday, barring business jets and many private flights from using a dozen airports already under commercial flight limits.

    Airports nationwide have seen intermittent delays since the shutdown began because the FAA slows air traffic when it’s short on controllers to ensure flights remain safe.

    The shutdown has made controllers’ demanding jobs even more stressful, leading to fatigue and increased risks, said Nick Daniels, president of the National Air Traffic Controllers Association. He said the number who are retiring or quitting is “growing” by the day.

    During the six weekends since the shutdown began, an average of 30 air traffic control facilities had staffing issues. That’s almost four times the number on weekends this year before the shutdown, according to an Associated Press analysis of operations plans sent through the Air Traffic Control System Command Center system.

    Tuesday will be the second missed payday for controllers. It’s unclear how quickly they might be paid once the shutdown ends — it took more than two months to receive full back pay after the 35-day shutdown that ended in 2019, Daniels said.

    The latest shutdown and money worries have become regular “dinnertime conversations” for Amy Lark and her husband, both Washington, D.C., area air traffic controllers.

    “Yesterday, my kids asked me how long we could stay in our house,” Lark said. Still, she said controllers remain “100% committed.”

    ___

    Yamat reported from Las Vegas and Funk from Omaha, Nebraska. Associated Press writers Christopher L. Keller in Albuquerque, New Mexico; Ken Sweet, Wyatte Grantham-Philips and Michael R. Sisak in New York; Stephen Groves and Kevin Freking in Washington; and John Seewer in Toledo, Ohio, contributed to this report.

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  • Speaker faces unruly House as lawmakers return for shutdown vote

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    WASHINGTON — After refusing to convene the U.S. House during the government shutdown, Speaker Mike Johnson is recalling lawmakers back into session — and facing an avalanche of pent-up legislative demands from those who have largely been sidelined from governing.

    Hundreds of representatives are preparing to return Wednesday to Washington after a nearly eight-week absence, carrying a torrent of ideas, proposals and frustrations over work that has stalled when the Republican speaker shuttered the House doors nearly two months ago.


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    By LISA MASCARO – AP Congressional Correspondent

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  • Trump administration renews Supreme Court appeal to keep full SNAP payments frozen

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    President Donald Trump’s administration returned to the Supreme Court on Monday in a push to keep full payments in the SNAP federal food aid program frozen while the government is shut down, even as some families struggled to put food on the table.

    The request is the latest in a flurry of legal activity over how the program that helps 42 million Americans buy groceries should proceed during the historic U.S. government shutdown. Lower courts have ruled that the government must keep full payments flowing, but the Trump administration is asking the Supreme Court to keep them frozen for now.

    The high court is expected to rule Tuesday.

    The seesawing rulings so far have created a situation where beneficiaries in some states, including Hawaii and New Jersey, have received their full monthly allocations and those in others, such as Nebraska and West Virginia, have seen nothing.

    Brandi Johnson, 48, of St. Louis, said she’s struggling to make the $20 she has left in her SNAP account stretch. Johnson said she has been skipping meals the past two weeks to make sure her three teenage children have something to eat. She is also helping care for her infant granddaughter, who has food allergies, and her 80-year-old mother.

    She said food pantries have offered little help in recent days. Many require patrons to live in a certain ZIP code or are dedicated to helping the elderly first.

    “I think about it 24 hours a day, seven days a week, literally,” Johnson said. “Because you’ve got to figure out how you’re going to eat.”

    Millions receive aid while others wait

    The Trump administration argued that lower court orders requiring the full funding of the Supplemental Nutrition Assistance Program wrongly affect ongoing negotiations in Congress about ending the shutdown. Supreme Court Solicitor General D. John Sauer called the funding lapse tragic, but said judges shouldn’t be deciding how to handle it.

    The Senate Monday passed a compromise funding package that would end the government shutdown and refill SNAP funds. It now goes to the House for consideration.

    Trump’s administration initially said SNAP benefits would not be available in November because of the shutdown. After some states and nonprofit groups sued, judges in Massachusetts and Rhode Island ruled the administration could not skip November’s benefits entirely.

    The administration then said it would use an emergency reserve fund to provide 65% of the maximum monthly benefit. On Thursday, Rhode Island-based U.S. District Judge John J. McConnell said that wasn’t good enough, and ordered full funding for SNAP benefits by Friday.

    Some states acted quickly to direct their EBT vendors to disburse full monthly benefits to SNAP recipients. Millions of people in at least a dozen states — all with Democratic governors — received the full amount to buy groceries before Justice Ketanji Brown Jackson put McConnell’s order on hold Friday night, pending further deliberation by an appeals court.

    Delays cause complications for some beneficiaries

    Millions more people still have not received SNAP payments for November, because their states were waiting on guidance from the U.S. Department of Agriculture, which administers SNAP. Several states have made partial payments, including Texas, where officials said money was going on cards for some beneficiaries Monday.

    “Continued delays deepen suffering for children, seniors, and working families, and force nonprofits to shoulder an even heavier burden,” Diane Yentel, President and CEO, National Council of Nonprofits, one of the plaintiffs in the lawsuit, said in a statement Monday. “If basic decency and humanity don’t compel the administration to assure food security for all Americans, then multiple federal court judges finding its actions unlawful must.”

    Trump’s administration has argued that the judicial order to provide full benefits violates the Constitution by infringing on the spending power of the legislative and executive branches.

    Wisconsin, which was among the first to load full benefits after McConnell’s order, had its federal reimbursement frozen. The state’s SNAP account could be depleted as soon as Monday, leaving no money to reimburse stores that sell food to SNAP recipients, according to a court filing.

    New York Attorney General Letitia James said Monday that some cardholders have been turned away by stores concerned that they won’t be reimbursed — something she called to stop.

    New Jersey Attorney General Matt Platkin said Trump was fighting “for the right to starve Americans.”

    “It’s the most heinous thing I’ve ever seen in public life,” he said.

    The latest rulings keep payments on hold, at least for now

    States administering SNAP payments continue to face uncertainty over whether they can — and should — provide full monthly benefits during the ongoing legal battles.

    The Trump administration over the weekend demanded that states “undo” full benefits that were paid during a one-day window after a federal judge ordered full funding and before a Supreme Court justice paused that order.

    A federal appeals court in Boston left the full benefits order in place late Sunday, though the Supreme Court order ensures the government won’t have to pay out for at least 48 hours.

    “The record here shows that the government sat on its hands for nearly a month, unprepared to make partial payments, while people who rely on SNAP received no benefits a week into November and counting,” Judge Julie Rikleman of the U.S. 1st Circuit Court of Appeals wrote.

    U.S. District Judge Indira Talwani, presiding over a case filed in Boston by Democratic state officials, on Monday paused the USDA’s request from Saturday that states “immediately undo any steps taken to issue full SNAP benefits.”

    In a hearing later that Monday, Talwani said that communication to states was confusing, especially because the threat came just a day after USDA sent letters to states saying SNAP would be paid in full.

    Federal government lawyer Tyler Becker said the order was only intended for states to receive the full amount of SNAP benefits, and “had nothing to do with beneficiaries.”

    Talwani said she would issue a full order soon.

    ___

    Associated Press writers Scott Bauer in Madison, Wisconsin; Margery Beck in Omaha, Nebraska; John Hanna in Topeka, Kansas; Kimberlee Kruesi in Providence, Rhode Island; Nicholas Riccardi in Denver; and Stephen Groves and Lindsay Whitehurst in Washington, D.C., contributed to this report.

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