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  • What’s ‘algorithmic coercion,’ and why is it making things we buy more expensive? – WTOP News

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    One company choosing to use a quick and reactive pricing algorithm could lead its competitors to increase prices, leading customers to face higher costs, according to a University of Virginia economist.

    One company choosing to use a quick and reactive pricing algorithm could lead its competitors to increase prices, leading to customers facing higher costs across the board, according to a recent study led by a University of Virginia economist.

    Alexander MacKay, an associate professor of economics at the University of Virginia, said the research published by the National Bureau of Economic Research reviewed a concept called algorithmic coercion.

    It’s what could happen when an algorithm leads an entire market to increase its prices for the same items, discouraging rival companies from trying to compete based on price and making mundane goods universally more expensive.

    Airlines and hotels have used some variation of pricing algorithms for years, MacKay said, but “one of the big changes is monitoring rivals’ prices and reacting to that in real time.”

    Online retailers are using software that monitors prices on competitors’ websites, and then they’ll change their prices in response, motivated to beat the prices they encounter.

    “The role of economic theory and the research that we do is to look at, ‘well, what’s the implication of this for the consumer?’” MacKay said. “And what we’re pointing out is that this could actually lead to higher prices.”

    Previously, traditional human pricing was used, allowing a person to set the price of an item. But pricing algorithms — formulas for setting prices based on inputted information — are becoming more common, MacKay said.

    MacKay said if one company uses software that can collect a rival company’s prices quickly, and the technology can react in a fast way, “then that piece of software might be capable of disciplining any company that tries to lower their price.”

    “And as a result, if the algorithm is powerful enough and the company is sort of large enough, it can really discourage any of its rivals from competing based on price,” MacKay said. “As a result, everyone’s going to set a much higher price.”

    In some cases, MacKay said, the use of advanced pricing algorithms could result in prices that would be “higher than what you might get in a competitive market.”

    “We also show in our paper that the prices could actually be so high that it would be worse for consumers than if the market participants got together and colluded on price,” he said. “So the potential of algorithmic coercion to raise prices is actually pretty substantial.”

    MacKay said his research didn’t explore which companies are using the practice and what the impacts are, but it’s “quite possible that this is happening in a number of different industries.” He noted some online retailers and retail gasoline stations as specific examples.

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    Scott Gelman

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  • Youngkin slams Spanberger’s request to pause U.Va. president search – WTOP News

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    Virginia Gov. Glenn Youngkin responded directly to Abigail Spanberger with a letter saying her request to pause U.Va.’s search for a president is possibly damaging to the university.

    Virginia Gov. Glenn Youngkin responded directly to Abigail Spanberger in a letter, calling her request to pause the University of Virginia’s search for a president “meritless,” precipitous and possibly damaging to the university.

    The Republican governor wrote that when he spoke with Spanberger, Virginia’s Democratic governor-elect, earlier in the week, she had briefly mentioned sending a letter about the school, “but moved to a different topic so quickly that it seemed unimportant at the time.”

    Spanberger sent a letter to the university’s Board of Visitors on Wednesday, asking it to pause its search for a new president until she was sworn in and could appoint new board members.

    In his response to Spanberger, Youngkin wrote that “by acting precipitously, you may have inflicted significant damage on the university you profess to love.”

    Former university President Jim Ryan resigned during the summer over pressure from President Donald Trump’s administration and conservative critics over the university’s diversity, equity and inclusion practices.

    Spanberger said federal overreach that led to Ryan’s departure went unchallenged by the University of Virginia board.

    Youngkin, however, wrote that no Trump administration officials nor current board leadership made Ryan resign.

    In the months following his resignation, the university struck a deal with the White House to abide by guidance forbidding discrimination in admissions and hiring in order to end the Justice Department’s investigations into the school.

    “Over the past six months, the actions of the Board of Visitors have severely undermined the public’s and the University community’s confidence in the Board’s ability to govern productively, transparently, and in the best interests of the University,” Spanberger wrote in her letter Wednesday.

    In his letter to Spanberger, Youngkin questioned whether she knew the details of the settlement.

    “Had you waited until your transition team had the opportunity to learn all the facts behind this settlement, I believe you would agree with the many national experts who view it as extraordinarily fair and favorable to the University and Commonwealth,” he wrote.

    Youngkin also wrote that Spanberger’s assertion that the composition of the board is not in statutory compliance is “meritless” and has been rejected by the Court of Appeals of Virginia.

    Spanberger had written to the board that five of its members have not been confirmed by the General Assembly, and questioned the legitimacy of its search.

    “It’s dangerous to wrongfully disparage committed individuals who volunteer to serve on university boards and the serious work they do. Further, the Governor of the Commonwealth should speak thoughtfully and honor the service of those individuals,” Youngkin wrote.

    In her letter to UVA’s board, Spanberger said she’ll be ready to select appointees soon after her inauguration on Jan. 17. They are likely to be pushed through quickly by the General Assembly, as both chambers are controlled by Democrats.

    But Youngkin reminded her there’s a transition period for a reason.

    “There is just one Governor of Virginia at any time. This ensures that the Commonwealth’s operations can continue unimpeded. Communicating with state agencies or boards of visitors is confusing and is inconsistent with proven, professional protocols. And certainly, efforts to bully or micromanage are inappropriate,” Youngkin wrote to Spanberger. “It’s regretful that I must communicate to you in this manner, but your correspondence left no other choice.”

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    © 2025 WTOP. All Rights Reserved. This website is not intended for users located within the European Economic Area.

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    Thomas Robertson

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  • Spanberger asks U.Va. board to pause search for new president amid Trump scrutiny – WTOP News

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    Abigail Spanberger is asking the Board of Visitors at the University of Virginia to pause its search for a new president until she’s sworn in and can appoint new board members.

    Virginia’s governor-elect is asking the Board of Visitors at the University of Virginia to pause its search for a new president until she’s sworn in and can appoint — and the General Assembly can confirm — new board members.

    Abigail Spanberger, a Democrat and alumna of the school, said in a letter Wednesday to the university’s rector and vice rector who head the board, that she’s “deeply concerned by recent developments” at the university and how they might affect the legitimacy of the search for a new president.

    The school’s last president, James Ryan, resigned during the summer over pressure from President Donald Trump’s administration and conservative critics over the university’s diversity, equity and inclusion practices.

    Spanberger said federal overreach that led to Ryan’s departure went unchallenged by the University of Virginia board.

    In the aftermath, the school declined a request from the Trump administration to make commitments aligned with the president’s priorities in exchange for favorable access to funding. But days later, the university struck a deal with the White House to abide by guidance forbidding discrimination in admissions and hiring in order to end the Justice Department’s investigations into the school.

    In her letter, Spanberger called the university’s actions into question.

    “Over the past six months, the actions of the Board of Visitors have severely undermined the public’s and the University community’s confidence in the Board’s ability to govern productively, transparently, and in the best interests of the University,” she wrote.

    Making things worse in Spanberger’s mind, five members of the board have not been confirmed by the General Assembly, meaning the board’s composition is in violation of statutory requirements.

    Spanberger went on to request the board refrain from “rushing” the search and selection of finalists for the presidency until the board is full and in compliance, “meaning that I have appointed and the General Assembly has confirmed” new board members.

    It’s a signal of Spanberger’s willingness to challenge the Trump administration, which has been targeting universities across the country that don’t align with its priorities.

    She said she’ll be making her board appointments soon after her inauguration on Jan. 17. Her appointees are likely to be pushed through quickly by the General Assembly, as both chambers are controlled by Democrats.

    “It will be a priority of my administration to stabilize and normalize the leadership of our public colleges and universities,” Spanberger wrote.

    The Associated Press contributed to this report.

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    © 2025 WTOP. All Rights Reserved. This website is not intended for users located within the European Economic Area.

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    Thomas Robertson

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  • Photos: North Carolina battles Virginia in ACC college football action

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    The UNC Tar Heels under Bill Belichick face the UVA Cavaliers in Chapel Hill

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    Robert Willett

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  • University of Virginia strikes deal to pause Trump administration investigations – WTOP News

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    The university agreed to follow the government’s anti-discrimination criteria and provide corresponding data. If Virginia complies, the Justice Department said it would officially end its investigations into the university.

    WASHINGTON (AP) — The University of Virginia has agreed to abide by White House guidance forbidding discrimination in admissions and hiring, becoming the latest campus to strike a deal with the Trump administration as the college tries to pause months of scrutiny by the federal government.

    The Justice Department began investigating the admissions and financial aid processes at the Charlottesville campus in April. Federal officials accused Virginia’s president of failing to end diversity, equity and inclusion practices that President Donald Trump has labeled as unlawful discrimination.

    The mounting pressure prompted James Ryan to announce his resignation as university president in June, saying the stakes were too high for others on campus if he opted to “fight the federal government in order to save my job.”

    Unlike some universities’ deals with the Trump administration, the Virginia agreement announced Wednesday does not include a fine or monetary payment, said Paul Mahoney, interim president of the university, in a campus email. Instead, the university agreed to follow the government’s anti-discrimination criteria. Every quarter, the university must provide relevant data showing compliance, personally certified by its president.

    The deal, Mahoney wrote, preserves the university’s academic freedom and doesn’t hurt its attempts to secure federal research funding. And the university won’t have external monitoring by the federal government beyond quarterly communications with the Department of Justice.

    If Virginia complies, the Justice Department said it would officially end its investigations. If not, possible consequences include a fine or termination of federal funding.

    Virginia’s settlement follows other agreements signed by Columbia and Brown universities to end federal investigations and restore access to federal funding. Columbia paid $200 million to the government, and Brown paid $50 million to Rhode Island workforce development organizations.

    Along with omitting a fine, Virginia’s agreement is less prescriptive than those signed by Columbia and Brown. The deal requires Virginia to adhere to four pages of terms, compared to nine at Brown and 22 at Columbia. It includes a clear affirmation of academic freedom, with an acknowledgement that the government “does not aim to dictate the content of academic speech or curricula.”

    Although the college will adopt new federal definitions of discrimination in hiring, “we will also redouble our commitment to the principles of academic freedom, ideological diversity, free expression, and the unyielding pursuit of ‘truth, wherever it may lead,’” wrote Mahoney, quoting Thomas Jefferson, who founded the University of Virginia.

    As a public university, the University of Virginia was an outlier in the Trump administration’s effort to reform higher education according to the president’s vision. Previously, the administration had devoted most of its scrutiny to elite private colleges, including Harvard and other Ivy League institutions, accused of tolerating antisemitism.

    Since then, the White House has expanded its campaign to other public campuses, including the University of California, Los Angeles, and George Mason University.

    The Charlottesville campus became a flashpoint this year after conservative critics accused it of simply renaming its DEI initiatives rather than ending them. Much of the federal scrutiny had centered on complaints that Ryan, the college president who resigned in June, was too slow to implement a March 7 resolution by the university’s governing board demanding the eradication of DEI on campus. The Justice Department expanded the scope of its review several times and announced a separate investigation into alleged antisemitism in May.

    Among the most prominent critics was America First Legal, a conservative group created by Trump aide Stephen Miller. In a May letter to federal officials, the group said Virginia had only moved to “rename, repackage and redeploy the same unlawful infrastructure under a lexicon of euphemisms.”

    Similar accusations have embroiled George Mason University, where the governing board came to the defense of the president even as the Education Department cited allegations that he promoted diversity initiatives above credentials in hiring. On Aug. 1, the board unanimously voted to give President Gregory Washington a pay increase of 1.5%. The same day, the board approved a resolution forbidding DEI in favor of a “merit-based approach” in campus policies.

    The University of Virginia deal with the Justice Department did not include one of the investigations the federal government had launched into the college. The Education Department had included the Charlottesville campus in a March 10 list identifying 60 universities that were under investigation for alleged antisemitism.

    A department spokesperson said she could not confirm whether the investigation is still open because the agency’s Office for Civil Rights is furloughed during the government shutdown. She said the agreement does not resolve any department investigations.

    Still, Education Secretary Linda McMahon praised the Justice Department for pressing for “a renewed commitment to merit” at universities.

    “The Trump Administration is not backing down in our efforts to root out DEl and illegal race preferencing on our nation’s campuses,” McMahon said in a post on X.

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    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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    © 2025 The Associated Press. All rights reserved. This material may not be published, broadcast, written or redistributed.

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    WTOP Staff

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  • Trump administration announces agreement with UVA – WTOP News

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    he Trump administration is closing in on a settlement with the University of Virginia, according to an administration official, which could mark the first public university to reach a deal with the White House after months of turmoil.

    (CNN) — The Trump administration has reached an agreement with the University of Virginia, according to an announcement from the Department of Justice, marking the first public university to reach a deal with the White House after months of turmoil.

    The university has signed on to Justice Department guidelines on federal funding and discrimination and has agreed to “not engage in unlawful racial discrimination in its university programming, admissions, hiring, or other activities,” the Wednesday announcement said.

    Under the terms of the deal, UVA will not pay any financial settlement, unlike previous agreements reached with schools like Columbia University and Brown University to restore those schools’ federal funding.

    Nor will UVA have an outside monitor ensuring compliance – which was a key provision of Columbia’s agreement, and one that drew criticism about the federal government’s role on campus. Instead, the Justice Department said, “UVA will provide relevant information and data to the Department of Justice on a quarterly basis through 2028.”

    “The agreement does not require the University to make any monetary payments. Importantly, it preserves the academic freedom of our faculty, students, and staff. We will be treated no less favorably than any other university in terms of federal research grants and funding. The agreement does not involve external monitoring,” UVA interim President Paul Mahoney said in a letter to the school community Wednesday evening. “Instead, the University will update the Department of Justice quarterly on its efforts to ensure compliance with federal law.”

    In return, the Trump administration will pause ongoing investigations into the school, including its “admissions policies and other civil rights concerns,” the department said. Pending changes to end diversity, equity and inclusion efforts, the department “will close its investigations against UVA.”

    The agreement, which the New York Times first reported earlier Wednesday was close, marks the latest development in the Trump administration’s broader battle over campus oversight, federal funding and academic freedom.

    In June, the school’s president, James Ryan, announced his resignation amid pressure from the Department of Justice to dismantle the university’s diversity, equity and inclusion programs.

    Prior to Ryan’s resignation, the university’s board of visitors unanimously voted to scrap its Office of Diversity, Equity, Inclusion and Community Partnerships, according to Virginia GOP Gov. Glenn Youngkin’s office.

    But the university’s actions didn’t go far enough for the Justice Department and some conservative groups. Harmeet Dhillon, the assistant attorney general for civil rights, told CNN at the time that the university began “using a series of euphemisms to simply rebrand and repackage the exact same discriminatory programs that are illegal under federal law.”

    Dhillon praised Wednesday’s agreement as “notable” and said in a statement it would “protect students and faculty from unlawful discrimination, ensuring that equal opportunity and fairness are restored.”

    UVA is one of seven universities to reject what the Trump administration deemed a “Compact for Academic Excellence in Higher Education” that would unlock preferential access to federal funding. The offer, initially presented to nine schools earlier this month, included a series of demands, including no longer considering sex and ethnicity in admissions and capping international enrollment.

    While there are many areas of agreement in the proposed compact, “we believe that the best path toward real and durable progress lies in an open and collaborative conversation,” university interim President Paul Mahoney said in a statement Friday.

    This headline and story have been updated with the Department of Justice’s announcement of an agreement with UVA.

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    WTOP Staff

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  • Trump asks 9 colleges to commit to his political agenda and get favorable access to federal money – WTOP News

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    The White House is asking the University of Virginia and eight other major universities to commit to President Donald Trump’s political priorities in exchange for more favorable access to federal money.

    FILE – The Rotunda is shown at the University of Virginia on March 1, 2024, in Charlottesville, Va. (AP Photo/Peter Morgan, File)(AP/Peter Morgan)

    WASHINGTON (AP) — The White House is asking nine major universities to commit to President Donald Trump’s political priorities in exchange for more favorable access to federal money.

    A document sent to the universities encourages them to adopt the White House’s vision for America’s campuses, with commitments to accept the government’s priorities on admissions, women’s sports, free speech, student discipline and college affordability, among other topics.

    Signing on would give universities “multiple positive benefits,” including “substantial and meaningful federal grants” and “increased overhead payments where feasible,” according to a letter sent to universities alongside the compact. The letter calls it a proactive effort as the administration continues to investigate alleged civil rights violations at U.S. campuses.

    Called the “Compact for Academic Excellence in Higher Education,” it asks universities to accept the government’s definition of gender and apply it to campus bathrooms, locker rooms and women’s sports teams. It asks colleges to stop considering race, gender and a wide range of student demographics in the admissions process and to require undergraduate applicants to take the SAT or ACT.

    The 10-page proposed agreement was sent Wednesday to some of the most selective public and private universities: Vanderbilt, the University of Pennsylvania, Dartmouth College, the University of Southern California, the Massachusetts Institute of Technology, the University of Texas, the University of Arizona, Brown University and the University of Virginia. It was not clear how these schools were selected or why.

    The nine universities could become “initial signatories” and are being invited to provide feedback before the language is finalized, according to the letter. It asks for a decision by Nov. 21.

    White House takes a new, incentive-based approach

    The memo represents a shift in strategy as the administration offers a reward — not just punishment — as an incentive for adopting Trump’s political wish list. Many of the demands mirror those made by his administration as it slashed billions of dollars in federal money for Harvard, Columbia and others accused of liberal bias. A federal judge overturned cuts at Harvard in September, saying the government had overstepped its authority.

    Several universities said they were reviewing the compact and had no comment. A statement from the University of Virginia said there was nothing to suggest why it was chosen. The university’s interim president assembled a group of administrators on Thursday to review the letter.

    Leaders of the Texas system were “honored” that the Austin campus was chosen to be a part of the compact and its “potential funding advantages,” according to a statement from Kevin Eltife, chair of the Board of Regents. “Today we welcome the new opportunity presented to us and we look forward to working with the Trump Administration on it,” Eltife said.

    California Gov. Gavin Newsom said if any universities in his state sign the compact, they will lose access to state funding, including Cal Grants, a $2.8 billion student financial aid program. In an all-capital statement, Newsom, a Democrat, said California “will not bankroll schools that sell out their students, professors, researchers, and surrender academic freedom.”

    Colleges would have restrictions on international enrollment and tuition hikes

    Under the compact, international enrollment would have to be capped at 15% of a college’s undergraduate student body, and no more than 5% could come from a single country. All the universities invited to the compact appear to be within the 15% threshold, though Dartmouth and USC are close, at 14%, according to federal data. Many universities do not report breakdowns by individual countries.

    Most other U.S. universities also fall within the 15% cap, but about 120 exceed it, including Columbia University, Emory University and Boston University, federal data show.

    Some of the most sweeping commitments are aimed at promoting conservative viewpoints. Universities would have to ensure their campuses are a “vibrant marketplace of ideas” where no single ideology is dominant, the compact said. They would have to evaluate views among students and faculty to ensure every department reflects a diverse mix of views.

    To accomplish that, it says universities must take steps, including “transforming or abolishing institutional units that purposefully punish, belittle, and even spark violence against conservative ideas.”

    It requires policies meant to counter the kind of protests that roiled U.S. campuses last year amid the Israel-Hamas war. It asks for a commitment to prevent any disruption to classes or campus libraries and to ensure demonstrators don’t heckle other students.

    Campuses that sign the compact would have to freeze tuition for U.S. students for five years, and those with endowments exceeding $2 million per undergraduate could not charge tuition at all for students pursuing “hard science” programs.

    Opponents see a threat to free speech

    Ted Mitchell, president of the American Council on Education, urged universities to reject the deal, saying it violates campus independence and undermines free speech.

    “It’s not worth the compromises that they would have to make,” he said. “This is a Faustian bargain.”

    The compact also drew criticism from free speech groups, faculty associations and from Larry Summers, a former Treasury secretary and Harvard president. Summers said he believes elite universities have lost their way, but he said the compact is like trying to “fix a watch with a hammer — ill conceived and counterproductive.”

    “The backlash against its crudity will likely set back necessary reform efforts,” Summers said.

    The terms of the deal would be enforced by the Justice Department, with violators losing access to the compact’s benefits for no less than a year. Following violations bump the penalty to two years.

    “Institutions of higher education are free to develop models and values other than those below,” the compact said, “if the institution elects to forego federal benefits.”

    ___

    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.

    Copyright
    © 2025 The Associated Press. All rights reserved. This material may not be published, broadcast, written or redistributed.

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  • University of Virginia shooting suspect in custody, university police announce

    University of Virginia shooting suspect in custody, university police announce

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    CHARLOTTESVILLE, Va. (AP) — The three students killed in a shooting at the University of Virginia were all members of the school’s football team, the school’s president said.

    President Jim Ryan told a Monday morning news conference the shooting happened Sunday night on a school bus of students returning from an off-campus trip.

    The suspect has been identified as Christopher Darnell Jones Jr., who is also student.

    The incident occurred Sunday near a university parking garage. In addition to the three football players killed, two others were reported to have been wounded.

    Police went on a manhunt Monday in search of the student suspected in the attack, officials said.

    During a press conference in the 11 o’clock hour local time, the university police chief, Tim Longo, was given word that the suspect was in custody. He immediately returned to the microphone and reported that update to the assembled reporters.

    Classes at the university were canceled Monday, following the violence Sunday night, and the Charlottesville campus was unusually quiet as authorities searched for the suspect, whom university President Ryan identified as Christopher Darnell Jones Jr.

    A shelter-in-place order to the university community had been lifted less than an hour earlier after a law-enforcement search of the campus.

    In a letter to the university posted on social media, Ryan said the shooting happened around 10:30 p.m. Sunday.

    The university’s emergency management issued an alert Sunday night notifying the campus community of an “active attacker firearm.” The message warned students to shelter in place following a report of shots fired on Culbreth Road on the northern outskirts of campus.

    Access to the shooting scene was blocked by police vehicles Monday morning.

    Officials urged students to shelter in place and helicopters could be heard overhead as a smattering of traffic and dog-walkers made their way around campus.

    The university police department posted a notice online saying multiple police agencies including the state police were searching for a suspect who was considered “armed and dangerous.”

    In his letter to campus, the university president said Jones was suspected to have committed the shooting and that he was a student.

    “This is a message any leader hopes never to have to send, and I am devastated that this violence has visited the University of Virginia,” Ryan wrote. “This is a traumatic incident for everyone in our community.”

    Eva Surovell, 21, the editor in chief of the student newspaper, The Cavalier Daily, said that after students received an alert about an active shooter late Sunday night, she ran to the parking garage, but saw that it was blocked off by police. When she went to a nearby intersection, she was told to go shelter in place.

    “A police officer told me that the shooter was nearby and I needed to return home as soon as possible,” she said.

    She waited with other reporters, hoping to get additional details, then returned to her room to start working on the story. The gravity of the situation sunk in.

    “My generation is certainly one that’s grown up with generalized gun violence, but that doesn’t make it any easier when it’s your own community,” she said.

    The Bureau of Alcohol, Tobacco, Firearms and Explosives said agents were responding to the campus to assist in the investigation.

    The Virginia shooting came as police were investigating the deaths of four University of Idaho students found Sunday in a home near the campus. Officers with the Moscow Police Department discovered the deaths when they responded to a report of an unconscious person just before noon, according to a news release from the city. Authorities have called the deaths suspected homicides but did not release additional details, including the cause of death.

    On April 16, 2007, another Virginia university was the scene of what was then one of the deadliest shootings in U.S. history. Twenty-seven students and five faculty members at Virginia Tech were gunned down by Seung-Hui Cho, a 23-year-old mentally ill student who later died from a self-inflicted gunshot wound.

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