week ending Jun 10

To pause or not to pause? Fed officials divided ahead of critical June meeting --Federal Reserve officials are divided on whether to raise interest rates at the central bank's policy meeting next week.With inflation picking up in April and the job market showing strength, a handful of members think the Fed should continue to raise rates to quell demand and bring down inflation.Some members, on the other hand, have argued for a pause to give the Fed the opportunity to take a step back and assess the economic impact of the central bank’s 10 rate hikes, tightening credit conditions and signs that inflation is slowing.Markets are pricing in a 70% chance of a pause at the June meeting based on CME Fed Funds Futures, as of 9:40 am ET Thursday morning. The Fed typically doesn’t like to surprise markets. Here is a visual assessment of how each member of the Fed's Federal Open Market Committee is leaning, based on a review of their comments over the past month:Some of these divisions emerged at the central bank's last policy meeting, in May. Minutes from that gathering later released by the Fed showed several officials were leaning toward a pause while many wanted to keep options open given uncertainty about the outlook."There appears to be enough support on the FOMC for a pause at next week’s meeting, but the statement and new projections will make clear that this is not the end of the hiking cycle," said Andrew Hunter, economist for Capital Economics."We now expect rates to be raised again at the July meeting."As part of its most aggressive rate hiking campaign since the 1980s, the Fed has increased the target range for its benchmark interest rate by 5 percentage points since March 2022. The Fed’s benchmark interest rate stands in a range of 5%-5.25%, the highest level since September 2007.

IMF Says Fed Will Have to Remain Tight at 5 ¼ to 5 ½ Rate Until Late 2024; Warns of “Unpredictable Consequences” to Banks by Pam Martens and Russ Martens - Last Friday, at the start of Memorial Day weekend, researchers at the International Monetary Fund (IMF) released an analysis of where they think the U.S. economy is headed and the headwinds (read gale force winds) that can, potentially, be expected along the way.Folks on Wall Street who were hoping that the Fed was at the end of its rate-hiking cycle, with a more dovish Fed juicing stock market returns later this year, likely had their holiday weekend ruined with this projection from the IMF:“Achieving a sustained disinflation will necessitate a loosening of labor market conditions that, so far, has not been evident in the data. To bring inflation firmly back to target will require an extended period of tight monetary policy, with the federal funds rate remaining at 5¼–5½ percent until late in 2024.”The Fed’s inflation target is 2 percent. As of its last report on May 10, the U.S. Bureau of Labor Statistics reported that the Consumer Price Index rose 0.4 percent in April on a seasonally-adjusted basis while the all-items index increased 4.9 percent over the last 12 months before seasonal adjustment.The Fed’s inflation target of 2 percent remains elusive despite the fact that the Fed began its rate hikes more than a year ago on March 17, 2022 and has hiked rates 10 times – the fastest pace in 40 years. The Fed Funds rate has moved from 0-0.25 percent on March 16, 2022 to the current 5.0-5.25 percent, the highest level for Fed Funds in more than 15 years.While the Fed has not cracked the tight labor market or inflation conundrums with its rapid rate increases, it has produced serious cracks in the banking system. Between March 10 and May 1 of this year, the second, third and fourth largest bank failures in U.S. history occurred: First Republic Bank, Silicon Valley Bank, and Signature Bank, respectively. (Washington Mutual was the largest bank failure in 2008.)Thus, it is no surprise that the condition of the balance sheets of banks in the U.S. received a significant amount of attention in the recent IMF report – as did the timidity of federal regulators to do anything more than destroy a forest of trees interminably writing warnings to troubled banks while taking no concrete action. The IMF researchers write:“First, a higher path for interest rates could reveal larger, more systemic balance sheet problems in banks, nonbanks, or corporates than we have seen to-date. Unrealized losses from holdings of long duration securities would increase in both banks and nonbanks and the cost of new financing for both households and corporates could become unmanageable.”

US Treasuries Blacklisted by German State as ESG Law Takes Hold -- For an illustration of how wildly different the debate around ESG is in Europe and the US, look no further than the German state of Baden-Württemberg. One of the richest regions in Europe’s biggest economy, and the home of Mercedes-Benz Group AG as well asRobert Bosch GmbH, adopted a law this year that puts investing sustainably on par with more traditional criteria such as profitability and liquidity. It’s a decision that may affect as much as a fifth of the state’s €17 billion ($18 billion) of holdings, as it pivots away from ESG laggards.Few outside Germany paid much attention to the law when it was passed. But it turns out the legislation has international ramifications. That’s because the new environmental, social and good governance filters have resulted in US Treasuries ending up on an investing blacklist, due to America’s failure to ratify a number of treaties in areas including women’s rights and controversial weapons. Other nations to be singled out by the policy include Finland, Latvia and Greece.The bulk of Baden-Württemberg’s exclusions impact its equity and corporate bond portfolios. The law establishes the United Nations Sustainable Development Goals, the European Union’s Taxonomy Regulation and the Paris Agreement on climate change as the basis for future investment decisions. The practical investment implications of the law are limited when it comes to US Treasuries, because the German state’s holdings weren’t significant to start with. In fact, German holdings of US Treasuries overall account for a tiny fraction of the market, or just $85 billion of the $24 trillion in outstanding debt, according to the latest data. And there’s little to indicate that investors’ ESG considerations in general have left any kind of dent on the US Treasury market.Relying on international treaties to determine portfolio exclusion lists is “kind of a blunt approach,” Arnim Emrich, head of Baden-Württemberg’s treasury and asset management unit, said in an interview. “But it’s the only proxy we have that is simple and objective.” In many ways, the investment approach is the polar opposite of a framework that Republican-led states are currently trying to create in the US. ESG principles have been vilified by senior members of the GOP, including presidential candidate Ron DeSantis, who wants to eradicate ESG and the “woke ideology” he says it represents. In the US, banks and financial firms are nowquietly burying their use of the acronym, and more than a dozen US state governors want to prohibit the use of ESG in all investment decisions.

US National Debt Spikes by $359 billion on 1st Day after Debt Ceiling Suspended. TGA Begins to Get Refilled, Draining Liquidity from Market by Wolf Richter - The Debt Ceiling Charade ended over the weekend when President Biden signed the “Fiscal Responsibility Act of 2023,” that suspends the debt ceiling through early 2025. A US default was “averted.” The ending of the charade is always known in advance: Congress will agree on a deal at the last minute, and the President will sign it, as it has been done for the 80th times since 1960. But the process of getting there can make you nervous. Then, after the Debt Ceiling Charade is over, we get a huge spike in the debt. So the U.S. national debt spiked by $359 billion in one single day, the first working day after the debt ceiling was suspended, to $31.83 trillion, as of yesterday evening, reported this evening by the Treasury Department. And that was just the beginning, there will be more hair-raising single-day spikes of the debt over the next few days: The total national debt comes in two types of Treasury securities, nonmarketable (cannot be traded in the bond market) and marketable (can be traded in the bond market). Savers’ favorite “I bonds” are nonmarketable Treasury securities. The Treasuries securities held by government pension funds, the Social Security Trust Fund, etc. are nonmarketable. Nonmarketable Treasury securities jumped by $28 billion yesterday, reported today, to $6.79 trillion. And marketable Treasury securities spiked by $330 billion yesterday, reported today. The chart below shows the shorter view of marketable Treasury securities for more detail. The Treasury Department is now issuing a flood of Treasury bills (with a maturity date in one year or less) and Cash Management bills, on top of the bonds and notes, to replenish its checking account. So this was the first leg of it: The government’s checking account, the TGA at the New York Fed, had fallen to a closing balance of $23 billion on Thursday and Friday last week. The out-of-money day would have been sometime this week. During prior debt ceiling charades, the TGA balance had fallen into a similar range before the debt ceiling was lifted or suspended. This $23 billion was a very thin cash cushion, given the huge amounts of money that flow through the TGA on a daily basis: Into it from tax receipts and issuance of new securities, and out of it to pay off maturing securities and meet regular outlays. The TGA balance jumped by $48 billion on Monday, reported today, to $71 billion. That increase was so small that it is hard to discern in the chart. But it was the first step in bringing it back to a normal-ish level. Massive bond issuance will be required in the near future, along with tax receipts, to: Pay off maturing securities, Fund the ongoing blistering budget deficit, and Replenish the TGA. As you can see in the TGA, the gigantic bond issuance in the spring and summer of 2020 to pay for the stimulus packages and other stuff wasn’t all spent in 2020. The year ended with $1.6 trillion in the TGA, after having peaked at $1.8 trillion in July. The TGA was subsequently drawn down to near-nothing during the two debt-ceiling charades in late 2021.

Analysis: Debt ceiling deal ignores US debt time bomb (Reuters) - Republicans and Democrats are touting a hastily-written debt ceiling deal that staves off a devastating U.S. default, but does little to slow a massive buildup of total federal debt now on pace to exceed $50 trillion in a decade. The deal's first problem, budget experts say, is it only curbs non-defense discretionary spending, or just about one-seventh of this year's $6.4 trillion federal budget. Defense, veterans' care and big-ticket safety-net programs are spared. Longer term, it fails to alter the U.S.'s chronic and growing revenue shortfall, thanks to health and retirement spending on the country's aging population and Congress's failure to raise taxes."If you're worried about the deficit and debt problem, this thing does nothing," said Dennis Ippolito, a public policy professor and fiscal expert at Southern Methodist University."What you've got in place is essentially Democratic spending policy and Republican tax policy, and there is nothing in the works that suggests any change to either of those," he said. The deal to suspend the $31.4 trillion debt ceiling until January 2025 holds non-defense discretionary spending largely flat this year, with a 1% increase in fiscal 2024.The Congressional Budget Office (CBO) estimates this would result in $1.3 trillion in savings over a decade. U.S. spending on health, retirement and other benefit programs has climbed steadily in recent decades, but negotiators in debt-ceiling talks look to cut other domestic and military spending.Even those savings may prove illusory, as Congress would be free to abandon its self-imposed spending limits within two years. On top of that, tax cuts passed by Republicans in 2017 expire on schedule in 2025, but the party is pushing to extend them.Making matters worse, higher interest rates are pushing up the government's debt service costs. CBO projects that these will triple to $1.4 trillion by 2033 -- far exceeding the projected defense budget at that time.In their debt limit negotiations, both President Joe Biden and House of Representatives Speaker Kevin McCarthy vowed not to touch the main driver of U.S. debt: rising Social Security pension and Medicare health benefit costs.Social Security costs are projected to increase by 67% by 2032, and the Medicare health program for seniors will nearly double in cost during that period, according to CBO, as Americans 65 or older top 46% of the U.S. population, up from 34% this year.Together, these two programs account for roughly 37% of current federal spending and are both on a path toward insolvency in about a decade. Other programs for veterans and low-income people push such safety-net spending to over half the budget.Debt-ceiling negotiations spared cuts to mandatory spending like Medicare, Medicaid and Social Security even though these programs cost more than discretionary spending.Unlike discretionary programs, which are given a fixed amount of money each year, these "mandatory" programs pay benefits to all who qualify for them. CBO projects the government will spend $6 trillion on mandatory spending programs in the 2033 fiscal year, up from $4.1 trillion this year.To start to shrink debt, the International Monetary Fund has recommended that the U.S. cut Social Security and Medicare costs with higher eligibility ages, means testing and other restrictions.But Washington policymakers aren't discussing such options, especially heading into the 2024 presidential election.There is a simple reason for this: they are popular with the public, in part because they are available to nearly everybody and form a lifeline for many U.S. seniors. A January Reuters/Ipsos poll found 84% of Democratic voters and 73% of Republican voters opposed reducing spending on the two programs. U.S. tax revenues are among the lowest among wealthy OECD countries and should be increased, some budget experts say.

What climate change means for the federal debt -Climate change is going to add significantly to the federal debt. The big question is how much. White House economists have spent the first two years of the Biden administration beginning to answer that question so the government can make better decisions about budgeting and spending. A warming world means more federal spending on disaster relief and recovery, health care and the repair and replacement of vital infrastructure. Economists expect it to take a toll on the broader economy — and, in turn, the tax base. The clean energy transition will also tax federal coffers, though there are economists who expect the Treasury to see some upside. And that’s before accounting for areas of the federal budget where the role of climate change may be harder to tease out, such as the demands placed on the military and on humanitarian budgets by a less stable, climate-stressed world. “This is why climate change is an existential threat, because it affects every aspect of our world, literally,” said Cecilia Rouse, who recently stepped down as the chair of the White House Council of Economic Advisers. “And to understand and disentangle and to quantify every relationship is really a challenge.” Meeting that challenge will make federal budget projections more realistic. It’s also likely to show that climate change will strain federal resources and fuel more political fights like the one that Washington just played witness to over the debt ceiling. Republicans and Democrats alike spent the spring rehashing responsibility for today’s $31.4 trillion federal debt, armed with comprehensive analysis about the budgetary implications of the budgetary implications of the war on terror, former President George W. Bush’stax cuts and their extensions and President Joe Biden’s spending bills. But climate change wasn’t part of the discussion.

McCarthy and McConnell show signs of a split on defense spending - A schism is opening between Congress’ two top Republican leaders over how much to hike defense spending and future aid to Ukraine.One day after Speaker Kevin McCarthy came out against exceeding the spending caps set by his debt-limit deal with President Joe Biden, Minority Leader Mitch McConnell dug in to insist that more must be done to support the nation’s defense interests. That puts the Senate GOP leader in line with hawks vowing to push for a fresh defense spending bill to pad the Pentagon’s coffers, which they say got short shrift in the Biden-McCarthy deal plan to the detriment of U.S. national security. It’s a significant bit of daylight between McConnell and McCarthy — and a sign of intra-GOP tension to come over whether to approve new help for Ukraine in its war against Russia. Most Republicans were loath to discuss the split publicly. But not Sen. Lindsey Graham (R-S.C.), the lead advocate for an extra defense spending infusion. “The speaker will never convince me that 2 percent below actual inflation is fully funding the Defense Department,” Graham said in a statement. “That cannot be the position of the Republican Party without some context here.” And some Democrats were blunt about the McConnell-McCarthy divide. “There’s a conflict in the messages coming from the two Republican leaders,” Senate Majority Whip Dick Durbin told reporters, making clear that he would back a defense supplemental bill. McConnell’s remarks came one day after McCarthy indicated defense spending should stick to the deal he reached with the White House that capped it at the administration’s request of $886 billion. “Why do you move to a supplemental when we just passed” the debt accord, McCarthy said Monday night. “If the idea of the supplemental is to go around the agreement we just came to, I think we’ve got to walk through appropriations.”

Conservatives rebel against McCarthy on gas stoves bill over debt deal anger - A band of House conservatives mounted an extraordinary rebellion against their own party leaders on Tuesday, venting their angst over the recent debt limit fight with a surprise protest that derailed the chamber floor. Republican leaders spent nearly an hour working to resolve the standoff with their right flank, which disrupted the party’s plans to pass legislation protecting gas stoves from potential government bans. But ultimately, roughly a dozen conservatives — most of them members of the Trump-aligned House Freedom Caucus — voted against moving forward on a bill they support. The move was entirely unexpected by senior Republicans, according to two people close to leadership. And some GOP lawmakers feared it might be just the beginning of a conservative drive to undercut Speaker Kevin McCarthy’s team unless, as some of Tuesday’s rebels put it, McCarthy keeps to promises he made in order to win the House’s top gavel in January. One frustrated conservative, Rep. Dan Bishop (R-N.C.), told reporters that “there’s no decision” made yet by McCarthy’s critics on the right on whether to force a vote ousting the speaker. Bishop added that the Republicans who voted no on Tuesday haven’t decided yet whether to take down further votes to make their points: “But the problem that has been precipitated entirely by the speaker’s approach to the debt ceiling is going to have to be dealt with.” The fury that forced the GOP to postpone its much-touted deregulatory bill showed that, no matter how much McCarthy presses to move on to the rest of his agenda, debt-vote tensions with the Freedom Caucus will remain. By demonstrating their power to upend the House floor, the rebels also showed that some members on McCarthy’s right have not ruled out an attempt to push him out. “I think we have some unresolved issues from last week,” said Rep. Scott Perry (R-Pa.), who leads the Freedom Caucus. Asked about those issues, Perry — who didn’t join the rebellion — said only: “There are a lot of them.” Those who did vote no on Tuesday offered scant further details on how they saw McCarthy violating the terms of the deal he struck with conservatives during January’s speakership race. Bishop suggested that an agreement to insist on federal spending at fiscal 2022 levels was violated by the debt deal, but it’s not clear that such a term was ever agreed upon.

House cancels votes for rest of week amid floor ‘chaos’ --House leaders canceled planned votes for the rest of the week amid a revolt by conservative members that brought any votes on the House floor to a halt. “What we’re gonna do is we’re gonna come back on Monday, work through it and be back working for the American public,” Speaker Kevin McCarthy (R-Calif.) told reporters Wednesday evening. He said his goal is “to try to work this out by the end of the night.” A group of 11 conservatives sunk a procedural rule vote Tuesday in a stunning rebuke to GOP leadership, fueled by anger over the debt limit bill negotiated by McCarthy and President Biden, who signed it into law over the weekend. Leaders were forced to keep the House in recess for the bulk of Wednesday before canceling votes. Members had been scheduled to hold last House votes for the week Thursday no later than 3 p.m. If they continue to vote against the rule resolutions governing debate on the House floor, conservatives can prevent leaders from bringing up any party-line measures for a vote. Talks between members of the House Freedom Caucus who sunk the rule and GOP leaders were not fruitful, forcing leaders to keep the House in recess for the bulk of Wednesday before canceling a planned second shot at bringing up the rule — which would have allowed floor votes on gas stoves and regulatory reforms. McCarthy said that while the conservative members were frustrated, they were not making specific requests. “This is the difficulty. Some of these members, they don’t know what to ask for,” McCarthy said. The Speaker earlier in the day insisted that the House GOP will work through this dispute and emerge stronger, and again downplayed the impasse Wednesday evening.

Debt-ceiling deal wildly profitable for mystery trader | Fortune - The US government’s move to greenlight a 300-mile natural gas pipeline as part of legislation to stave off a Treasury default shocked just about everyone, except for a mystery trader who somehow appears to have seen it coming. On Wall Street, analysts had mostly expected vague promises on energy permits to be included in a bill to raise the US debt ceiling. Yet, options trading suggests something bigger may have been in the offing. On May 24 — several days before an agreement was announced — a huge bullish bet was made on Equitrans Midstream Corp., data compiled by Bloomberg show. The company is deeply involved in the long-delayed Mountain Valley Pipeline. The wager involved snapping up 100,000 call options on the firm’s stock. It proved prescient and wildly profitable within just a few days. On May 27, White House and Republican lawmakers reached a deal that would give the long-delayed Mountain Valley Pipeline the final approvals needed to complete the project. Throughout April and much of May, negotiators from the White House and Congress went back and forth on broad-stroke parameters of an agreement. Almost until the very end, the details were closely held and in flux. Doubts lingered over whether a deal would be reached before the US was scheduled to run out of money in early June. The legislation, which was signed into law by President Joe Biden on Saturday, forced action on permits for the project. On paper, the bet appears to have earned $7.5 million through Friday. It has some asking whether more than skill and luck played a role. “My questions are: Who’s the trader? How sophisticated are they? And what are their connections to the government?” said Donald Sherman, chief counsel at the ethics watchdog Citizens for Responsibility and Ethics in Washington. He added the bet raises the specter of whether the parameters of the debt deal had somehow leaked out ahead of time. Digging into whether a trade is improperly based on confidential information is notoriously difficult, especially when it involves market-moving news from inside the government. The rules are also rife with gray areas and ambiguities. Officials, including members of Congress, are barred from trading on confidential information they learned in their position. But if, for example, someone overhears a Congressional staffer loudly mention a piece of information on the train, they’re likely in the clear.

Biden Administration Announces $2.1 Billion Weapons Package for Ukraine - The Department of Defense announced on Friday it will purchase $2.1 billion in weapons for Ukraine, including munitions for Patriot and Hawk air defense systems.The weapons to be purchased include:

• Additional munitions for Patriot air defense systems;
• HAWK air defense systems and missiles;
• 105mm and 203mm artillery rounds;
• Puma Unmanned Aerial Systems;
• Laser-guided rocket system munitions;
• Support for training, maintenance, and sustainment activities.

The weapons are being purchased for Kiev under the Ukraine Security Assistance Initiative (USAI). The Joe Biden administration has primarily relied on the Presidential Drawdown Authority (PDA) to ship arms directly from US stockpiles to Ukraine. Weapons provided under the USAI could take months or years to deliver as they involve contracts and might need to be manufactured."This announcement represents the beginning of a contracting process to provide additional priority capabilities to Ukraine," the Pentagon press release said. "This USAI package illustrates the continued commitment to both Ukraine’s critical near-term capabilities as well as the enduring capacity of Ukraine’s Armed Forces to defend its territory and deter Russian aggression over the long term."A Pentagon fact sheet claims the US has now committed to Ukraine $39.7 billion in security assistance alone. However, a February report published by the Kiel Institute said American military aid had already topped $45 billion.Congress authorized the White House to spend $18 billion through the USAI in FY 2023. The Pentagon has announced $10.8 billion in arms purchases using the USAI this year.A conflict of interest looming over purchasing the weapons in this package is that Secretary of Defense Lloyd Austin previously worked with Raytheon. The arms industry giant manufactures the Patriot interceptors the Pentagon plans to buy. 60 Minutes recently interviewed a former Pentagon contract negotiator, Shay Assad, who warned companies were exploiting the war in Ukraine by "price gouging" the US government.Assad pointed to Raytheon making a 40 percent profit on Patriot munitions. The company also lied about the cost and time involved in building radar equipment to build the Patriot system, according to the former Department of Defense employee.

US Officials Confirm NATO Weapons Were Used in Attack on Russia's Belgorod Oblast - US officials confirmed to The Washington Post that US and other NATO equipment was used in a cross-border attack in Russia’s Belgorod region that was launched on May 22. The fighters used at least four US-made Mine-Resistant Ambush Protected vehicles, known as MRAPs. The Post report said that three of the MRAPs were provided to Ukraine by the US, and one was provided by Poland. The fighters were also armed with rifles made by Belgium and the Czech Republic and at least one Swedish-made AT-4 anti-tank weapon. AT-4s are used by the US military, and the US has shipped them to Ukraine.The attack was claimed by two groups of Russian volunteers who have been fighting for Kyiv, the Russian Volunteer Corps and the Legion of Free Russia. The Russian Volunteer Corps includes members who are open neo-Nazis and white nationalists, including its leader, Denis Nikitin.Nikitin told Financial Times shortly after the raid that his fighters were armed with MRAPs and US-made Humvees. His group has since claimed they were not using American weapons, likely over backlash from Kyiv as the US has reiterated that it doesn’t want Ukraine using American weapons on Russian territory. The US restriction does not apply to Crimea.Since the May 22 attack, the Russian volunteer groups have claimed more raids in Belgorod. On Sunday, Russian authorities said Ukrainian saboteurs had infiltrated the village of Novaya Tavolzhanka in Belgorod, and the Russian Volunteer Corps claimed they captured Russian soldiers in the area.Kyiv has tried to distance itself from the Russian volunteers. But according to The Times of London, Discord leaks show Ukraine had been planning attacks on Russian territory using Russian volunteer groups for some time. One document said the Russian citizens fighting for Ukraine are armed with “various qualitative types of NATO weapons.”

Blinken Dismisses Calls for a Ceasefire, Says US Must Build Up Ukraine’s Military - The US will focus its efforts on arming Ukraine and not attempting to bring the war to a negotiated settlement, America’s top diplomat said. Secretary of State Antony Blinken laid out a plan to massively expand Kiev’s military before talks begin. In a speech delivered in Finland on Friday, Blinken stated, "The United States – together with our allies and partners – is firmly committed to supporting Ukraine’s defense today, tomorrow, for as long as it takes." He continued, "We believe the prerequisite for meaningful diplomacy and real peace is a stronger Ukraine, capable of deterring and defending against any future aggression."Blinken dismissed the idea of even a temporary pause in the fighting. "Some countries will call for a ceasefire. And on the surface, that sounds sensible – attractive, even. After all, who doesn’t want warring parties to lay down their arms? Who doesn’t want the killing to stop?" He said. "But a ceasefire that simply freezes current lines in place and enables Putin to consolidate control over the territory he’s seized…It would legitimize Russia’s land grab. It would reward the aggressor and punish the victim." The Secretary of State offered an ambitious vision of Kiev’s future military capabilities. "America and our allies are helping meet Ukraine’s needs on the current battlefield while developing a force that can deter and defend against aggression for years to come." He added, "That means helping build a Ukrainian military of the future, with long-term funding, a strong air force centered on modern combat aircraft, an integrated air and missile defense network, advanced tanks and armored vehicles, national capacity to produce ammunition, and the training and support to keep forces and equipment combat-ready."It is unclear how long it would take to build the deterrence force envisioned by Blinken. American arms stockpiles are dwindling as Washington attempts to transfer Kiev enough military equipment to keep its army fighting. The US additionally has plans to significantly increase arms transfers to Taiwan.Blinken claimed, "Our support for Ukraine hasn’t weakened our capabilities to meet potential threats from China or anywhere else – it’s strengthened them." In November, the Wall Street Journal reported, "US government and congressional officials fear the conflict in Ukraine is exacerbating a nearly $19 billion backlog of weapons bound for Taiwan, further delaying efforts to arm the island."Additionally, the White House may not have the support it needs in the Capitol for such a massive military buildup in Ukraine. Blinken asserted that "in America, this support is bipartisan." However, at the beginning of May, Rep. Michael McCaul (R-TX), chairman of the House Foreign Affairs Committee, said future support for Ukraine would be contingent on success in Kiev’s long-planned counteroffensive.

Milley Says Ukraine 'Well Prepared' for Counteroffensive Due to US, NATO Support - On Monday, Chairman of the Joint Chiefs of Staff Gen. Mark Milley said Ukraine was “well prepared” to launch a counteroffensive against Russian forces thanks to the support the US and NATO have provided.“So, I think it’s too early to tell what outcomes are going to happen. I think the Ukrainians are very well prepared, as you know very well. The United States and other allied countries in Europe and really around the world have provided training and ammunition and advice, intelligence, et cetera, to the Ukrainians,” Milley told CNN.“We’re supporting them. They’re in a war that’s an existential threat for the very survival of Ukraine. And it has greater meaning to the rest of the world, for Europe, really, for the United States, but also for the globe,” he added. Milley’s comments came a day after Russia said Ukraine launched a “large-scale offensive” in the Donetsk oblast. The Russian Defense Ministry claimed it thwarted the offensive and inflicted heavy losses on the Ukrainians.For their part, Ukrainian officials denied the Russian claims. But later on Monday, Ukrainian Deputy Defense Minister Hanna Maliar said that Kyiv was shifting toward offensive actions “in some areas,” and US officials told The New York Times that the counteroffensive has likely started, citing satellite data. Despite Milley’s assurances that Ukrainian forces are well prepared for the assault, Pentagon documents leaked on Discord, and recent media reports have shown that US officials do not believe Ukraine can regain much territory from Russia. Regardless, the Biden administration has made clear it plans to keep supporting Kyiv and won’t push for diplomacy.

WaPo: US Knew Ukraine Planned to Attack Nord Stream Pipelines - intelligence in June 2022 about a Ukrainian plot to bomb the Nord Stream natural gas pipeline that connects Russia to Germany. The report omitted the fact that investigative journalist Seymour Hersh has sources who said President Biden ordered the bombing of the Nord Stream pipelines.The Post report cited an intelligence assessment leaked to Discord by Airman Jack Teixeira but did not publish the document. The report said that an unnamed European country’s intelligence service shared information with the CIA about the alleged Ukrainian plot.The Post said that the Ukrainian plotters were not rogue operatives but reported directly to Gen. Valerii Zaluzhnyi, the commander-in-chief of the Ukrainian armed forces. The report said they initially planned to attack the pipelines at the end of NATO exercises in the Baltic Sea in June 2022, known as BALTOPS. According to Hersh’s reporting, US Navy divers planted explosives on the Nord Stream pipelines during BALTOPS, and they were detonated by a Norwegian spy plane dropping a sonar buoy in the area on September 26, 2022.The idea that the US suspected Ukrainian involvement in the Nord Stream bombings first surfaced in a New York Times report that was published on March 7. Sources told Hersh that the report was a cover-up planted in the paper by the CIA to discredit his story that points the finger at President Biden.

Russia Questions US Knowledge of Previous Ukrainian Plans to Attack Nova Kakhovka Dam - Russia on Wednesday questioned what the US might have known about Ukrainian plans to attack the Nova Kakhovka Dam in southern Ukraine using a US-provided HIMARS system.The Russian-controlled dam was destroyed early Tuesday, and the Russians and Ukrainians are trading blame for the incident, which has caused massive flooding and forced thousands of people to evacuate. The destruction of the dam also threatens the water supply to Crimea.In December 2022, The Washington Post reported that Ukraine considered attacking the dam during its counteroffensive in Kherson last year, citing a conversation with Maj. Gen. Andriy Kovalchuk, who led the offensive for Kyiv. The report said Ukraine even conducted a test strike on the dam using a US-provided HIMARS rocket system.“Kovalchuk considered flooding the river.” The Post reported. “The Ukrainians, he said, even conducted a test strike with a HIMARS launcher on one of the floodgates at the Nova Kakhovka dam, making three holes in the metal to see if the Dnieper’s water could be raised enough to stymie Russian crossings but not flood nearby villages. The test was a success, Kovalchuk said.”Russian Foreign Ministry Spokeswoman Maria Zakharova said Wednesday that US officials must be asked if they were aware of the Ukrainian plans. “Were you aware of how American weapons, the weapons that are being supplied to Ukraine, are used?” she said.“That trial tests of a terrorist attack against civilian infrastructure in third countries are being made? These are the questions that we directly pose in the public space before the White House; you must answer them,” Zakharova added. The Kremlin said Tuesday that the canal that provides 85% of Crimea’s water was rapidly becoming shallower as a result of the dam’s destruction. Ukraine cut off Crimea’s access to the canal in 2014, and it was only restored after Russia took control of the area after the February 2022 invasion. Securing the water supply to Crimea was one of Russia’s motives for invading.

Russian Official Says Ukraine Was Ready to Sign Peace Deal Early in the War But Gave Up Due to US Pressure - Russian Security Council Secretary Nikolay Patrushev said Thursdaythat Ukraine was ready to sign a peace deal with Russia in the early days of the war but gave up on negotiations due to US pressure.“Had it not been for the US pressure on those whom they installed at the head of Ukraine, this situation would have not happened. Even the Ukrainian leaders themselves were ready for signing a peace treaty and gave Russia written proposals that we, in principle, approved,” Patrushev said. He said there are “interested parties in this conflict,” mainly the US and the UK.Russian and Ukrainian negotiators held in-person talks at the end of March 2022 in Istanbul and followed up with virtual consultations. According to the account of former US officials speaking to Foreign Affairs, the two sides agreed on the framework for a tentative deal that would have involved a Russian withdrawal in exchange for Ukrainian neutrality.But in April 2022, then-British Prime Minister Boris Johnson traveled to Kyiv and urged Ukrainian President Volodymyr Zelensky not to negotiate with Russia. According to a report from Ukrainska Pravda, Johnson said even if Zelensky was ready to sign a deal with Putin, Kyiv’s Western backers were not.According to Ukrainska Pravda, Johnson’s position was that of “the collective West, which back in February [2022] had suggested Zelensky should surrender and flee, now felt that Putin was not really as powerful as they had previously imagined, and that here was a chance to ‘press him.'” The report said Russia was open to a Putin-Zelensky meeting at the time, but that possibility came to a halt after Johnson’s visit.Then-Israeli Prime Minister Naftali Bennet was trying to mediatebetween Putin and Zelensky in March 2022 and gave a similar account of the West’s position. He said the US and its allies “blocked” his mediation effort and that he thought there was a “legitimate decision by the West to keep striking Putin” and not negotiate.After peace talks were scuttled in April 2022, Turkish Foreign Minister Mevlut Cavusoglu said he expected the conflict to end after the Istanbul talks but then realized some countries in NATO wanted to prolong the war to “weaken” Russia. A few days after Cavusoglu’s comments, Secretary of Defense Lloyd Austin admitted that one of the US’s goals in supporting Ukraine is to see Russia “weakened.”

Republican White House hopeful Nikki Haley attacks Trump, DeSantis over Ukraine (Reuters) - Republican presidential hopeful Nikki Haley, U.N. ambassador under former President Donald Trump, went after her ex-boss and 2024 rival Ron DeSantis on Sunday over their refusal to say whether they want Ukraine to win its war against Russia. In recent town hall events, Trump, the favorite for the Republican presidential nomination, said that he wanted the war to end, but that he would help Ukraine and Russia negotiate a settlement. Florida Governor DeSantis, Trump's nearest rival for the Republican nomination, said recently that he supports a settlement to the war, and that he hopes fighting will end by the time the next president takes the oath of office in January 2025. Haley, the only woman in the race for the Republican nomination, lambasted DeSantis for saying this year that Ukraine was a "territorial dispute", a comment that drew widespread criticism and that he has since walked back. "For them to sit there and say that this is a territorial dispute - that's just not the case, or to say that we should stay neutral," Haley told voters in the early nominating state of Iowa during a televised CNN town hall event.

China Places Country Dangerously Close To US Warship – Caitlin Johnstone -- The US military has released video footage of a Chinese navy ship cutting across the path of an American Destroyer in the Taiwan Strait over the weekend, reportedly forcing the US vessel to slow down to avoid a collision. A statement on the incident from US Indo-Pacific Command says the Chinese ship “executed maneuvers in an unsafe manner” in the presence of US and Canadian warships during a “routine south to north Taiwan Strait transit” by the naval forces of those nations, coming as close as 150 yards from the American vessel.Now, I know what you’re thinking: what is a Chinese navy vessel doing in the Taiwan Strait, right where US and Canadian warships are peacefully conducting routine navigation exercises?Well I don’t know if this news will be as shocking to you as it is to me, but it turns out that China has somehow managed to place its country immediately adjacent to the Taiwan Strait, and is now only 100 miles from Taiwan itself. This narrow channel of water was the only space the US and Canadian navies were given to travel through, placing them dangerously close to Chinese warships, and to the country of China.China has yet to issue a formal apology for menacing the US navy with the unsafe maneuverings of both its battleship and its geographical location.Noting in its statement that it was acting “in accordance with international law” at the time of the incident, US Indo-Pacific Command says that its transit “demonstrates the combined U.S.-Canadian commitment to a free and open Indo-Pacific,” adding that the US military “flies, sails, and operates safely and responsibly anywhere international law allows.”Which is of course true. These are international waters after all, and the Chinese navy should therefore stay out of the way of US military vessels traveling through them, just as the US navy would stay out of the way of Chinese military forces traveling a few miles off the coast of California or transiting between the islands of Hawaii. The US is only asking for the same freedom of navigation it would afford anyone else.

US Accuses China of 'Aggressiveness' in Taiwan Strait, South China Sea - The White House on Monday accused the Chinese military of being more “aggressive” in waters near China’s coast following two encounters between the US and Chinese militaries in the South China Sea and the Taiwan Strait.In recent years, the US has been increasing its military presence in the region as part of a buildup that is explicitly aimed at preparing for a future war with China. Beijing has been warning against the US buildup and now appears to be taking more action in an attempt to deter US flights and naval patrols.On Saturday, the US said a Chinese warship passed within 150 yards in front of a US naval ship that was transiting the Taiwan Strait with a Canadian naval vessel. A few days earlier, the US accused a Chinese aircraft of conducting an “unprofessional intercept” of a US surveillance plane over the South China Sea. “Sadly, this is just part of, again, a growing aggressiveness by the PRC [People’s Republic of China] that we’re dealing with, and we’re prepared to address it,” White House National Security Council spokesman John Kirby told reporters. “It won’t be long before somebody gets hurt.”In Beijing, Chinese Foreign Ministry spokesman Wang Wenbin defended the Chinese military’s actions when asked about the incident in the Taiwan Strait. “The actions taken by the Chinese military are necessary steps in response to the provocations by the country concerned. These actions are completely justified, lawful, safe, and professional,” Wang said. “China resolutely opposes the country concerned stirring up trouble in the Taiwan Strait and is firmly determined to defend its sovereignty and security and regional peace and stability,” he added.

The Pentagon Is Freaking Out About a Potential War With China - The war began in the early morning hours with a massive bombardment — China’s version of “shock and awe.” Chinese planes and rockets swiftly destroyed most of Taiwan’s navy and air force as the People’s Liberation army and navy mounted a massive amphibious assault across the 100-mile Taiwan Strait. Having taken seriously President Joe Biden’s pledge to defend the island, Beijing also struck pre-emptively at U.S. and allied air bases and ships in the Indo-Pacific. The U.S. managed to even the odds for a time by deploying more sophisticated submarines as well as B-21 and B-2 stealth bombers to get inside China’s air defense zones, but Washington ran out of key munitions in a matter of days and saw its network access severed. The United States and its main ally, Japan, lost thousands of servicemembers, dozens of ships, and hundreds of aircraft. Taiwan’s economy was devastated. And as a protracted siege ensued, the U.S. was much slower to rebuild, taking years to replace ships as it reckoned with how shriveled its industrial base had become compared to China’s.The Chinese “just ran rings around us,” said former Joint Chiefs Vice Chair Gen. John Hyten in one after-action report. “They knew exactly what we were going to do before we did it.” Dozens of versions of the above war-game scenario have been enacted over the last few years, most recently in April by the House Select Committee on competition with China. And while the ultimate outcome in these exercises is not always clear — the U.S. does better in some than others — the cost is. In every exercise the U.S. uses up all its long-range air-to-surface missiles in a few days, with a substantial portion of its planes destroyed on the ground. In every exercise the U.S. is not engaged in an abstract push-button war from 30,000 feet up like the ones Americans have come to expect since the end of the Cold War, but a horrifically bloody one.

House Armed Services Chair Wants China Spending Bill - Rep. Mike Rogers (R-AL), chair of the House Armed Services Committee, said Tuesday that he wants Congress to pass a supplemental spending bill this year to address so-called threats from China, Defense News reported. Rogers’ comments come after President Biden signed legislation into law on the debt ceiling deal reached between the White House and House Republicans that includes a massive $886 billion military budget for 2024. But for hawks in Congress, $886 billion isn’t enough. Rogers said once Congress completes the 2024 National Defense Authorization Act and related appropriation bills, then it will be “time for us to look and see if we actually address China. If we did, fine. If we didn’t, we’ll go ahead and drop more funding. It’s all about China for me.” Under the debt ceiling deal, emergency supplemental funds are exempt from spending caps, and hawks are looking to use them to increase military spending. The $113 billion in spending on the war in Ukraine that Congress has authorized to date was done through emergency supplemental bills, meaning there’s no limit on Ukraine aid. Rogers suggested Ukraine funding should be reduced in the future as he thinks China should be the focus. “Based on how effective the counteroffensive is this summer, and if there is a ceasefire or some resolution by the end of September, I’ll probably have to revisit Ukraine then, at a much smaller level than anything we’ve done before,” he said.

US, Japan promote plans for boosting Tokyo’s rearmament -US Defense Secretary Lloyd Austin recently travelled to Japan for meetings with Japanese officials, where the two sides pledged to deepen their war drive against China while promoting Tokyo’s remilitarization. This is in line with Washington’s goal of building a system of military alliances in the Indo-Pacific region in preparation for war with China. The meetings took place on June 1 as part of Austin’s four-nation trip, that also included stops in Singapore for the Shangri-La Dialogue, India, and France. Austin spoke separately with his counterpart Defense Minister Yasukazu Hamada and Foreign Minister Yoshimasa Hayashi while also paying a “courtesy call” to Prime Minister Fumio Kishida. During a joint press conference, Austin and Hamada pledged their commitment to the US-Japan alliance with the former declaring that the two countries’ “militaries are operating and training together like never before.” The two denounced China, Russia, and North Korea, including Pyongyang’s failed attempt to launch a military reconnaissance satellite into orbit the previous day. Two days later, Austin and Hamada also met together with South Korea’s Defense Minister Lee Jong-seop on the sidelines of the Shangri-La Dialogue, with the three agreeing to begin sharing real-time intelligence between Seoul and Tokyo within the year, ostensibly aimed at North Korea. This is part of the deepening trilateral relationship between the US, Japan, and South Korea, which Washington considers a vital aspect of its ballistic missile system in the region. Furthermore, while in Tokyo, Austin and his Japanese allies discussed working together to improve Japan’s ability to launch long-range attacks far beyond its borders. Couched in the language of defense and the supposed need for “counter-strike” capabilities, Japan intends to develop and acquire cruise missiles that would enable its military to strike targets in China, Russia, or North Korea.

Pentagon, White House Dismiss WSJ Report on Chinese Spy Station in Cuba, Calling It 'Not Accurate' - The Pentagon on Thursday dismissed a report from The Wall Street Journal that claimed Beijing and Havana have reached an agreement in principle on China establishing a secret spy facility in Cuba. When asked about the report, Pentagon spokesman Brig. Gen. Patrick Ryder said it was inaccurate. “I can tell you based on the information that we have, that that is not accurate, that we are not aware of China and Cuba developing a new type of spy station,” he said. “In terms of that particular report, no, it’s not accurate.”The White House also dismissed the WSJ report. “We have seen the report. It’s not accurate,” said White House National Security Council spokesman John Kirby, according to Reuters.The WSJ report cited anonymous US officials who claimed China would provide Cuba with billions of dollars as part of the agreement to build an eavesdropping station. The officials claimed the facility would allow China to gather signals intelligence, known as SIGINT, which could include the monitoring of emails, phone calls, and satellite transmissions.The Soviet Union had a spy station in Cuba throughout the Cold War, known as Lourdes SIGINT station, which was closed by Russia in 2002. Sen. Bob Menendez (D-NJ), the hawkish chair of the Senate Foreign Relations Committee, said if China establishes a spy facility in Cuba, it would be a “direct assault upon the United States.”But any Chinese surveillance efforts in the region would be a response to the US is constantly running surveillance operations near China, including frequent spy plane flights over the South China Sea. The US is also suspected of having SIGINT capabilities in Taiwan.

China using secret base in Cuba to spy on U.S., Biden admin official confirms - China has been spying on the United States from a base in Cuba, a Biden administration official said on Saturday, claiming that “this is an issue that this administration inherited.” The Wall Street Journal, followed by POLITICO and other outlets, reported on Thursday that China had been in conversations with Havana to establish a new spy base in the island nation. That same day, the White House and the Pentagon said the reporting was “inaccurate,” without going into details.On Saturday, an administration official clarified by saying that the Chinese base in Cuba has already been established, noting that it didn’t happen on their watch. The administration official, who was granted anonymity to discuss a sensitive subject, said the Chinese spying effort has been an ongoing concern and that the U.S. has been taking steps to deal with it. “When this administration took office in January 2021, we were briefed on a number of sensitive PRC efforts around the world to expand its overseas logistics, basing, and collection infrastructure globally to allow the [military] to project and sustain military power at greater distance,” the official said, referring to the People’s Republic of China. “This effort included the presence of PRC intelligence collection facilities in Cuba,” the official confirmed. “In fact, the PRC conducted an upgrade of its intelligence collection facilities in Cuba in 2019. This is well-documented in the intelligence record.” President Joe Biden directed his administration to address the issue. “Within months, we did so,” the official said, noting that the thrust of the engagement with Beijing over the spy post has been through diplomacy. The official would not go into detail, but said the engagements have brought “results” and that “our experts assess that our diplomatic efforts have slowed the PRC down.” “We think the PRC isn’t quite where they had hoped to be,” the official said. “The PRC will keep trying to enhance its presence in Cuba, and we will keep working to disrupt it.”

Milley says canceling drag show on military base was ‘absolute right thing to do’ - Gen. Mark Milley, the nation’s highest ranking military officer, defended the Pentagon’s decision to cancel a drag show on a U.S. Air Force base, calling it the “absolute right thing to do” in an interview Monday with CNN. Milley said he backed Defense Secretary Lloyd Austin’s cancellation of a drag show that was scheduled for last week at Nellis Air Force Base in Nevada, saying they both shared concerns about the event taking place on a military installation. “I think it is the absolute right thing to do,” he told CNN’s Oren Liebermann in Normandy, France, ahead of the 79th anniversary of D-Day. The chairman of the Joint Chiefs of Staff also said drag shows “were never part of DOD policy to begin with and they’re certainly not funded by federal funds.” Drag shows on military bases date back to at least World War I, and several installations have featured them in recent years. But the Pentagon last week cited a decades-old policy on standards of conduct and ethics regulation in enforcing the cancellation of the event at Nellis Air Force Base. A spokesperson also said “certain criteria” must be met for nongovernment individuals or organizations hosting events on military bases. White House press secretary Karine Jean-Pierre on Monday referred questions on the drag show ban to the Defense Department. Jean-Pierre also said President Biden “is proud of the LGBTQI people serving in our nation’s military.” “As Secretary Austin has expressed in his Pride Month statement that he put out just last week, the Biden-Harris administration will celebrate LGBTQI+ service members contributions with pride across federal agencies, including at the Department of Defense,” Jean-Pierre told reporters at a briefing. The move came after intense criticism from Republicans, who have long decried what they call “woke” Pentagon policies and any efforts based on diversity, equity and inclusion within the military.

Right Wing ‘Populism’ Is Fake And Stupid – Caitlin Johnstone - Republican politicians have found a way to reconcile the fact that scrutinizing the behavior of the US war machine appeals to their base and wins votes with the fact that the Republican Party is built around facilitating war and militarism at every turn. Their solution? Pour mountains of energy into championing the case that the nation’s military has gotten too “woke”. Republican congressman Chip Roy published a press release on Thursday declaring that he has “called on Secretary of Defense Lloyd Austin to provide a full accounting of the department resources that will be used to impose woke gender ideology on America’s men and women in uniform during the month of June.” “It has come to our attention that the Department of Defense (DoD) will once again divert American families’ tax dollars away from advancing its mission to ‘deter war and ensure our nation’s security’ to the promotion of diversity, equity, and inclusion (DEI) events during the month of June 2023,” Roy wrote. “Expending vital resources on this type of political maneuvering, most apparent during the month of June, is inconsistent with the national security interests of the United States and is an inexcusable use of taxpayer dollars.”Probably worth mentioning at this point that the debt ceiling agreement reached between President Biden and House Republicans insisted on only non-military cuts to spending and increased the US military budget to $886 billion, which GOP leaders have already slammed as “inadequate”. Republicans everywhere are committing to this bit where they pose as brave populist heroes who aren’t afraid to challenge the US war machine by spouting gibberish about how the Pentagon is being too accommodating on LGBT issues. Last week Congressman Matt Gaetz made a big show of opposing the complete non-issue of “drag shows on military installations,” then took to Twitter the other day to proclaim a “HUGE VICTORY” when an air force base drag show was canceled. During an interview on Fox News last week, Republican presidential hopeful Ron DeSantis was asked by Trey Gowdy how he would respond to the war in Ukraine on day one of his presidency, and he started babbling about wokeness and gender ideology. “You talk about gender ideology, you talk about things like global warming, that they’re somehow concerned and that’s not the military that I served in. We need to return our military to focusing on commitment, focusing on the core values and the core mission,”said DeSantis. Which is, needless to say, not an answer to the question. It’s just a bunch of soundbytes designed to sound critical of the military and appeal to right wing sensibilities without actually saying anything meaningfully critical of the US proxy war in Ukraine.

Republican Senators Introduce 'End Endless Wars Act' to Repeal 2001 AUMF - A group of Republican senators on Thursday introduced a bill to repeal the 2001 Authorization for the Use of Military Force (AUMF) that was passed in the wake of the September 11th attacks and is still being used to justify wars today.The End Endless Wars Act was introduced by Senators Rand Paul (R-KY), Mike Lee (R-UT), JD Vance (R-OH), and Mike Braun (R-IN). The legislation would repeal the 2001 AUMF 180 days after its enactment.“If there exists any desire to reclaim our Constitutional power and send a message to the world that we are a nation of peace, Congress should pass this bill and repeal the 2001 Authorization for war. After all, the 2001 AUMF never intended to authorize worldwide war, all the time, everywhere, forever,” said Sen. Paul, according to a press release from his office.Sen. Lee said the 2001 AUMF has “become one of the many instruments of misuse, and it is time for members of Congress to end this authority that keeps us in endless wars.” Sen. Braun said that no president should “have the authority to singlehandedly wage war” and called to “return this power to the people and repeal this authorization that has far outlived its’ purpose.”The 2001 AUMF currently authorizes war in Syria, Iraq, Somalia, Yemen, and several other countries. There’s been a push in Congress to repeal the 2002 AUMF that was used for the 2003 invasion of Iraq, but that authorization is not used today, and repealing it won’t end any current wars.In March, the Senate voted to repeal the 2002 AUMF and the 1991 AUMF used for the Gulf War. At the time, Sen. Paul attempted to include an amendment to the legislation to repeal the 2001 AUMF, but it failed in a vote of 9-86.

US Launches Second Airstrike in Somalia Within a Week - US Africa Command (AFRICOM) announced that it launched an airstrike in Somalia on June 1, marking the second US bombing in the country within a week and the third since May 20.AFRICOM said the strike was launched about 37 miles southwest of Kismayo, a port city in southern Somalia. The command claimed the strike killed three al-Shabaab fighters and that its “initial assessment” found no civilians were harmed, but the Pentagon is notorious for undercounting civilian casualties.The last US airstrike was launched on May 26 and came after al-Shabaab attacked an African Union base housing Ugandan troops. Uganda said on Saturday that 54 of its soldiers were killed in the attack. The US said its airstrike destroyed military equipment that al-Shabaab took from the base. AFRICOM said that the US strike on May 20 wounded one al-Shabaab member. The May 20 airstrike marked the first known US bombing in the country claimed by AFRICOM since February 21.US airstrikes in Somalia escalated toward the end of 2022 and at the beginning of 2023 as the US-backed Mogadishu-based government launched an offensive against al-Shabaab. The US has also stepped up military aid and training of the Somali government’s military.

Report: US, Iran Close on Interim Nuclear Deal for Sanctions Relief - According to a report from Middle East Eye, the US and Iran are near a deal that would reduce Iran’s uranium enrichment in exchange for sanctions relief, although it’s not certain that a final agreement will be reached. Sources told MEE that direct talks between US and Iranian officials have been taking place on US soil, which marks a significant diplomatic development between the two nations as previous negotiations were indirect and took place in Vienna. President Biden’s special envoy for Iran, Robert Malley, has been leading the US delegation. The Iranian delegation has been led by Amir Saeed Iravani, the Iranian ambassador to the United Nations.The MEE report said that the US wasn’t interested in restoring the original 2015 nuclear deal, known as the JCPOA, but an interim agreement is on the table. The deal would involve Iran stopping enriching uranium at 60%.Iran would also have to continue cooperation with the International Atomic Energy Agency (IAEA). Iran and the IAEA have recently resolved several outstanding issues, and Tehran has a history of being very transparent about its nuclear program despite US and Israeli claims.In exchange for the Iranian steps, the US would allow Iran to export up to one million barrels of oil per day, and Tehran would be able to access some of its frozen funds. Haaretz first reported the US and Iran were close to a deal and said Tehran would be able to access about $20 billion of its assets held in South Korea, Iraq, and at the International Monetary Fund.The deal is not finalized as both sides need the approval of their leadership. President Biden is already coming under pressure fromhawks in Congress who are against any sort of diplomacy with Iran or sanctions relief for the Islamic Republic. US sanctions on Iran have done nothing to change the government but have had a devastating impact on ordinary Iranians.

White House Says Iran Is Helping Russia Build a Drone Factory -As part of a "deepening" military partnership between Iran and Russia amid the war in Ukraine, US intelligence officials believe Tehran is assisting Moscow in building a drone manufacturing plant that may be operational next year, the White House said on Friday. American officials claim hundreds of Iranian drones were transported to Russia via the Caspian Sea last month.The drones are "shipped across the Caspian Sea, from Amirabad, Iran, to Makhachkala, Russia, and then used operationally by Russian forces against Ukraine," said National Security Council spokesman John Kirby. "As of May, Russia received hundreds of one-way attack [unmanned aerial vehicles], as well as UAV production-related equipment, from Iran," Kirby added.The Islamic Republic insists that it has not provided drones to Russiasince the Kremlin launched its invasion last year.According to Kirby, the alleged drone factory will be built in the Alabuga special economic zone in the Russian republic of Tatarstan. The White House released a satellite photo that purports to show an industrial site, 600 miles east of Moscow in the Yelabuga region, where Russia will "probably" conduct the "domestic production of Iranian designed UAVs."Tehran is said to be providing materials necessary for building the plant as well. The extent of the evidence presented is this photograph and a color coded map showing the ostensible shipping route from Iran to Russia across the Caspian Sea.This story was originally reported in the Wall Street Journalmonths ago, citing foreign officials "aligned" with Washington, but no new or significant evidence appears to have been presented, although media reports portray this declassification as significant.Kirby went on to warn Iran and Russia will be held “accountable" for violating UN Security Council Resolution 2231 that endorsed the Joint Comprehensive Plan of Action, the Iran nuclear deal, which the US illegally exited five years ago.Although, according to the Arms Control Association, this claim is in dispute because the restrictions on weapons Kirby is referring to are related to "importing or exporting nuclear-capable delivery systems or certain components that could be used to develop nuclear-capable delivery systems."A report published by the Stockholm International Peace Research Institute about the UN arms embargo on Iran explains "restrictions on supplies of major arms to and all arms from Iran expired in October 2020."Additionally, for months, officials have warned Iran was considering selling Russia hundreds of ballistic missiles, but administration officials have now said they lack any evidence of deals taking place.The US is also releasing an advisory so other countries and foreign business entities can "better understand the risks posed by Iran’s UAV program and the illicit practices Iran uses to procure components for it," Kirby said. This should "help governments and businesses put in place measures to ensure they are not inadvertently contributing to Iran’s UAV program," Kirby added.Reports this week revealed the US and Iran are engaged in direct talks nearing an interim deal which would see Tehran regain access to $20 billion in frozen assets as well as restart some oil exports. ThoughCongressional hawks along with the Israelis remain strongly opposedto any potential deal with Iran.

Mexico to explore ‘legal and diplomatic measures’ over Florida’s migrant flights - The Mexican government late Thursday condemned Florida’s migrant relocation program, adding to the jurisdictions potentially threatening legal action against the Sunshine State’s GOP Gov. Ron DeSantis. “The Government of Mexico emphatically condemns the practice of transporting migrant persons from states bordering Mexico toward other parts of the United States with electoral and political ends,” reads a statement from the Mexican foreign ministry. The statement specified its censure was targeted at migrant relocations to Massachusetts — Florida kicked off its relocation program transporting 49 Venezuelans from Texas to Martha’s Vineyard — New York, and Sacramento, Calif. Mexico had mostly remained quiet about the practice that has set off a feud between DeSantis and California Gov. Gavin Newsom (D), but the Mexican Consulate General in Sacramento revealed that one of the migrants shuttled to Sacramento on a Florida-sponsored migrant flight is a Mexican citizen from the southern state of Chiapas. “From the U.S. Border, you can see individuals on Mexican soil engaged in drug and human trafficking,” said Jeremy Redfern, the press secretary for DeSantis’s executive office. “It would be great if the Mexican Government could focus on these problems rather than wasting its breath on some unfounded legal claim relating to illegal immigrants that voluntarily get a free ride to a sanctuary jurisdiction that purports to welcome them with open arms.“ A majority of migrants embroiled in the relocation program are Venezuelan nationals, many of whom are legally in the United States as asylum applicants. Mexican nationals generally face a higher bar to claim asylum in the United States, because the country’s relative stability makes it harder to prove individualized persecution. “The Secretariat of Foreign relations reiterates its commitment to guarantee the defense of Mexican persons who live abroad, independently of their migratory status,” reads a statement by the foreign ministry. “Legal and diplomatic measures will be explored given this worrying practice.” The legal threat adds Mexico to the growing number of jurisdictions pushing back on the practice through legal means, rather than just condemning its morality.

California attorney general says Florida responsible for flying migrants to Sacramento — California’s attorney general said the state of Florida appears to have arranged for a group of South American migrants to be dropped off outside a Sacramento church. “While this is still under investigation, we can confirm these individuals were in possession of documentation purporting to be from the government of the State of Florida,” Bonta said in a statement late Saturday. The documents said the migrants were transported through a program run by Florida’s Division of Emergency Management and carried out by contractor Vertol Systems Co., said Tara Gallegos, a spokesperson for Bonta. Florida paid the same contractor $1.56 million last year to fly migrants from Texas to Martha’s Vineyard, Massachusetts, and for a possible second flight to Delaware that never took place. The 16 migrants who arrived in Sacramento on Friday are from Colombia and Venezuela. They entered the U.S. through Texas. They were transported to New Mexico then flown by a charter plane to California’s capital, where they were then dropped off in front of the Roman Catholic Diocese of Sacramento, California officials said.

Florida officials could still face charges over migrant flights, Gavin Newsom says - — Florida’s admission that it sent two chartered flights of migrants to California doesn’t mean those involved with the operation won’t face charges, Gov. Gavin Newsom told POLITICO on Tuesday. In an interview, Newsom dismissed the state of Florida’s description of the transport as part of a voluntary relocation aimed at calling attention to the large numbers of migrants seeking to cross the U.S.-Mexico border. Newsom said it appears at least some of the migrants were misled and flown to his state under false pretenses. “When you have the smoking gun, which is the paperwork in hand that everyone hands over to you, it’s pretty self-evident,” Newsom said. His comments marked the latest round in an escalating fight between Newsom and Florida Gov. Ron DeSantis — two governors who both won double-digit victories in November, enjoy supermajorities in their respective state legislatures and have sharply divergent politics. DeSantis, who was in Iowa this week campaigning for president as a hard-right Republican, has directed his state to send migrants to states led by Democrats to protest Biden administration border policies. Newsom, a President Joe Biden ally, leads a state where migration from Mexico is largely a non-issue to voters. DeSantis and his administration had initially declined to issue any statements about the flights. Their surprise arrival under mysterious circumstances prompted sharp criticism, and a threat of criminal charges, from Newsom and California Attorney General Rob Bonta, who met with some of the migrants over the weekend. That threat still stands.

Dream of reparations hits political reality in California - — California Democrats three years ago set out to confront more than a century of discrimination toward Black residents with a push for reparations. Now, those ambitions have faded, and frustration is mounting in their own ranks.Despite its reputation as a liberal bastion, the Democratic supermajority that controls California’s legislature has recently quashed the kinds of criminal justice reform proposals that are central to the reparations movement, including bills that would have required police officers to obtain a warrant before searching a vehicle and banned police canines from biting suspects.And even before a closely watched task force could issue its final recommendations aimed at unwinding a legacy of racism, Democratic Gov. Gavin Newsom and others poured cold water on their biggest-ticket item, cash payments for descendants of slaves.“California is not as liberal as people want us to believe,” state Sen. Steven Bradford (D-Gardena), vice chair of the Legislative Black Caucus, told POLITICO. He said while the state has pushed the boundaries on environmental issues, “when it comes to the real issue that impacts us the most, race, we’re hesitant to really buck the curve.”A new poll out this week found that just 39 percent of California’s likely voters support the idea of a reparations task force, a political reality that Bradford — who sits on the panel — and his allies in the Legislature must overcome. In an interview this week, the state senator said he didn’t expect bills explicitly tied to the group’s recommendations to advance until next year, though there are three months left in the legislative session.Taken together, the failure to advance marquee policing policies, the dimming prospects of cash payments and voter apathy on reparations once again illustrate the limits of single-party rule for progressive lawmakers intent on taking big swings. Over the last decade, sweeping proposals to establish more police oversight and end involuntary servitude as a punishment for crimes failed or took multiple attempts to pass as more moderate Democrats balked at going against the law enforcement lobby. Now, there’s growing concern that California may have missed its moment to act in the wake of George Floyd’s murder by a Minneapolis police officer in May 2020, as the nation was gripped by protests and calls for racial justice.

When 3 Men Richer Than 165 Million People, Sanders Says Working Class Must 'Come Together'- As President Joe Biden signed into law an agreement Saturday that would shield wealthy tax cheats from stronger IRS enforcement while at the same time enacting cuts to key anti-poverty programs, SenatorBernie Sanders and other progressive allies were busy denouncing the immoral, low-wage economic system in the United States in which just a small handful of mega-billionaires have accumulated more wealth than tens of millions of hard-working but low-paid workers and their families. At a "Rally to Raise the Wage" in Charleston, South Carolina on Saturday, the independent politician and two-time presidential candidate railed against the inequality that remains so pervasive in the country and the political forces that seek to divide the working class. "The reason we are here today is not complicated," Sanders said. "In the richest country in the world, we demand an economy that works for all, not just the few.""In every age, moral people have had to rise up and decide to make the moral case that things have to change and injustice has to move." —Bishop William J. Barber II "It is not moral that three people on top own more wealth than the bottom half of American society, 165 million Americans," Sanders declared during his speech. "That's not moral. That's not right. That's not what should exist in a democratic society."

As port disruptions continue, big business lobby groups call on Biden to step in with railroad-style interventionIn the face of militant dockworker actions that have continued to cause disruptions at several major international West Coast ports, two major trade groups—the National Retail Federation and the National Association of Manufacturers—issued statements on Monday demanding that President Joe Biden intervene and dictatorially force through a contract, as he did last year with the railroad workers. On Monday, the Pacific Maritime Association (PMA), which represents the major international shipping companies, reported that “work actions” at the ports by dockworkers “have slowed operations at key marine terminals.” The PMA accused workers of “slowing operations, and making unfounded health and safety claims.” In a statement posted on Twitter, June 5, Jay Timmons, the president and CEO of the National Association of Manufactures, wrote that “even a temporary shutdown at the West Coast’s busiest ports will result in massive economic loss and endanger thousands of manufacturing jobs. Manufacturers implore the @WhiteHouse to bring negotiating parties together and reopen America’s shipping gateways on the West Coast.” David French, Senior Vice President of Government Relations for the National Retail Federation (NRF), issued a statement also on Monday warning that the West Coast ports “play a critical role in the vitality of the American economy. Thousands of retailers and other businesses depend on smooth and efficient operations at the ports to deliver goods to consumers every day. “It is imperative,” French wrote, “that the parties return to the negotiating table. We urge the administration to mediate to ensure the parties quickly finalize a new contract without additional disruptions.” This is the third statement in the last year that the NRF has issued demanding the White House intervene to force a contract on dockworkers. Notably, the NRF also spearheaded Wall Street efforts to force through a railroad contract last year, issuing similar statements demanding Biden keep the trains running on time.

Biden vetoes measure overturning student loan forgiveness plan -President Biden has vetoed a measure that would have overturned his student debt relief plan, leaving the fate of the program in the hands of the Supreme Court. “Congressional Republicans led an effort to pass a bill blocking my Administration’s plan to provide up to $20,000 in student debt relief to working and middle class Americans,” Biden said in a tweet Wednesday. “I won’t back down on helping hardworking folks.” “Let me make something really clear, I’m never going to apologize for helping working- and middle-class Americans as they recover from this pandemic, never,” Biden said. The president’s proposal, which has been a target of Republicans since he first unveiled it, would impact 40 million borrowers, providing $10,000 in loan forgiveness to those making less than $125,000 annually and $20,000 in forgiveness for Pell Grants recipients. A two-thirds majority vote in both the House and the Senate would be required to override Biden’s veto, a threshold opponents of Biden’s effort cannot reach. In a statement Wednesday, Biden said he vetoed the solution because he is “committed to continuing to make college affordable and providing this critical relief to borrowers as they work to recover from a once-in-a-century pandemic.” The measure to block the plan passed the Senate this month in a 52-46 vote and cleared the GOP-majority House in a party-line vote, with two Democrats joining Republicans. In the Senate, Democratic Sens. Jon Tester (Mont.) and Joe Manchin (W.Va.) and Independent Sen. Kyrsten Sinema (Ariz.) joined Republicans in voting to nix Biden’s proposal. The measure was brought up as a joint resolution under the Congressional Review Act (CRA), which allows Congress to nullify newly-placed rules and regulations. Such measures are not subject to the filibuster, so Democrats in the Senate could not block the measure, and a supermajority of 60 votes was not required to advance it. The Supreme Court is still considering the plan, but the conservative majority is expected to strike it down. Justices displayed skepticism during February oral arguments that the Biden administration has the power to forgive up to $20,000 in student loans.

Rep. Slotkin unveils 5 bills to protect military members, communities from PFAS —— On Thursday, U.S. Representative Elissa Slotkin introduced new legislation to help protect service members from PFA exposure. Slotkin introduced five different bills including;

• The PFAS Free Military Purchasing Act, which would prohibit Department of Defense procurement of certain items containing certain types of PFAS, including cookware, floor wax, cleaning products, carpeting and upholstery and food packaging materials.
• The PFAS Exposure, Assessment, and Documentation Act, which would require the Department of Defense to evaluate service members for exposure to PFAS during physical exams and – if they are exposed – provide a blood test to determine and document their level of exposure.
• The PFAS Strictest Standard Act, which would require the Department of Defense to abide by most stringent standards among state or federal PFAS standards in cleanup efforts.
• The PFAS Training For DoD Providers and Service Members Act, which would require the Department of Defense to provide each of its medical providers with mandatory training regarding the potential health effects of PFAS.
• The PFAS Cleanup Transparency Act, which would require the Department of Defense to post on a publicly available website timely and regularly updated information on the status of cleanup at sites.

"These five bills will require the Department of Defense to take meaningful steps to clean up these ‘forever chemicals’ and to provide essential support to our men and women in uniform who have been exposed. Winding down the use of PFAS and cleaning up contaminated areas has been one of my top priorities in Congress – it’s a threat to Michiganders’ way of life, and it’s time for action," said Slotkin in a statement.Polyfluoroalkyl Substances (PFAS) are known as forever chemicals that can be found in your blood stream. People with PFAS found in there blood stream are at a higher risk for damaged liver, kidneys and thyroid, as well as worsened immune system, reproductive system and could develop multiple kinds of cancer.Michigan has the highest number of PFA contamination in the country. About 44 tons of PFAS have been released into the air and water supplies of Ohio and Michigan.

Wildfires reignite calls for Biden to declare a climate emergency - Liberal lawmakers are renewing their calls for President Biden to declare a national climate emergency, citing the smoke from Canadian wildfires descending on the Capitol and much of the eastern United States. “This is a planetary emergency, and the president should declare an emergency,” Sen. Jeff Merkley (D-Ore.) told The Climate 202 yesterday. “It is the biggest issue facing humankind. We are on a trajectory for a massive increase in climate chaos, affecting us in every possible way.” Sen. Bernie Sanders (Vt.), an independent who caucuses with Democrats, agreed that an emergency declaration is warranted. “This should be a wake-up call to every member of the Congress that if we don’t get a handle on climate change, it is going to be absolutely devastating,” Sanders said. “This is not the end of the problem — this is the beginning of what we’re going to be seeing.” Scientists say human-caused global warming has exacerbated the hot and dry conditions that allow wildfires to spark and spread. An emergency declaration would give the president sweeping executive powers to crack down on fossil fuels, a leading cause of climate change, including by blocking crude oil exports. Biden first considered issuing an emergency declaration last year, when it appeared that Democrats’ signature climate law had collapsed in Congress amid resistance from Sen. Joe Manchin III (D-W.Va.). But the president abandoned the idea after Manchin helped broker a surprise deal on the Inflation Reduction Act. With unprecedented air pollution affecting about 123 million people yesterday, liberal lawmakers and activists say now is the moment to reconsider marshaling these powers. “It’s past time to declare a National Climate Emergency and unleash every resource available to prepare for and mitigate the worst impacts of increasingly frequent climate-fueled disasters, like forest fires, heat waves, floods, and more,” Rep. Earl Blumenauer (D-Ore.) said in a statement.

Dems seize on Canada wildfires to pound GOP’s climate opposition - The wildfire smoke blanketing the Capitol is giving Democrats a fresh opportunity to lambaste the GOP for its opposition to taking action on climate change — including steps that Republicans were taking as the wall of haze descended.In Congress, Republicans railed this week against climate rules for power plants and attempted to kneecap future regulations on indoor air pollution from gas stoves. In Virginia, meanwhile, state regulators appointed by Republican Gov. Glenn Youngkin voted Wednesday to pull their state out of a regional program meant to slash power companies’ greenhouse gas pollution.Democrats say those actions fly in the face of a wealth of science, including research backed by the U.S. government, showing that the planet’s warming is worsening wildfires and other disasters around the globe. That reality is now creating milky smog and orange skies for tens of millions of Americansbecause of smoke from hundreds of fires in Canada, while schools cancel recess and flight delays hamper passengers throughout the East Coast. And it’s literally hitting Washington leaders where they live and breathe.“Imagine being a Republican climate change denier in Congress — you show up to work at the Capitol today, see the skies filled with smoke … and you still don’t get that we need bold and immediate action to save our planet? Ridiculous,” Rep. Pramila Jayapal (D-Wash.), the chair of the Congressional Progressive Caucus, tweeted on Wednesday.Republicans accused Democrats of overplaying the public health risks. And some said the Canadian blazes are giving East Coast residents a taste of life out West, where destructive wildfires have become the norm.

Bipartisan bill would lay groundwork for U.S. carbon tariffs - Senators from both parties have signed on to legislation that would calculate the emissions intensity of industrial materials produced in the United States. It’s a necessary step, advocates say, toward a carbon border adjustment mechanism, or CBAM, that would slap tariffs on carbon-intensive imports. “We need our own math,” said George David Banks, a conservative climate adviser and former climate official in the Trump administration. “The Europeans are moving forward with their own CBAM … and [they] will come up with our own math for us.” But the effort in the Senate also underscores the challenges lawmakers face in creating a climate trade policy to harmonize with the European Union: Of the myriad CBAM frameworks currently under development on Capitol Hill on both sides of the aisle, a bill that would just mandate a study is so far the only measure that has been able to attract bipartisan consensus. “It’s easier to take a second step once you’ve taken a first step,” said Sen. Kevin Cramer (R-N.D.). “It can create a little momentum, but at the very least it creates a baseline from which to work, and it gets people thinking about it in a different context than, ‘Oh, my God, it’s a carbon tax.’” Cramer, with Sen. Chris Coons (D-Del.), on Wednesday introduced the “Providing Reliable, Objective, Verifiable Emissions Intensity and Transparency (PROVE IT) Act.” The bill would require the Department of Energy to study and determine the emissions intensity of nearly two dozen products made in the United States and by G-7 countries, free-trade agreement partners, foreign countries of concern and “countries that hold a substantial global market share for a covered product.” The list of “covered products” would include aluminum, iron, steel, plastic, crude oil, lithium-ion batteries, solar panels and wind turbines. The Energy Department would have two years to compile a report on its findings, in consultation with EPA, the U.S. Trade Representative and the Commerce and State departments. An update of the data would have to be published every five years. “Studying emissions intensity is not easy; it will take some time, it is complex, and, in particular, figuring out a fair process for imposing tariffs on countries that don’t have any transparency around their emissions is also going to be a complex part of any border carbon adjustment mechanism,” Coons said Wednesday. “So given there’s a bipartisan group that was interested in moving forward on this, I thought it was important that we introduce this piece and lay the foundation for the rest of the conversation.” Coons has introduced more comprehensive CBAM proposals in the past, while Cramer confirmed this week he is continuing to work on crafting a “trade deal” that could be reconciled with what the European countries are already doing. Joining Coons and Cramer as original co-sponsors of the bill are Sens. Angus King (I-Maine), Lisa Murkowski (R-Alaska), Martin Heinrich (D-N.M.), Lindsey Graham (R-S.C.), John Hickenlooper (D-Colo.)., Sheldon Whitehouse (D-R.I.) and Bill Cassidy (R-La.).

Capito demands hearings on EPA plan to shutter coal-and-gas fired plants - U.S. Senator Shelley Moore Capito, R-W.Va., is asking for additional public hearings to be scheduled on a far-reaching federal Environmental Protection Agency plan that would force the closure of additional coal-and gas-fired power plants. Capito, the Ranking Member of the Senate Environment and Public Works Committee, joined 27 of her colleagues Thursday in urging EPA Administrator Michael Regan to extend the agency’s public comment period for its latest set of proposed power plant regulations. The latest rules were announced by the Biden administration in May, and Capito has already said she plans to try to overturn them through the Congressional Review Act. She says the EPA has provided only limited opportunities to date for public input on the controversial plan. “Through the currently announced rulemaking process, the EPA has provided minimal opportunity for public input,” the 27 senators wrote in the letter to Regan. “In the most recent proposal, only one virtual public hearing was announced along with 60 days of public comment. The EPA’s engagement on the Clean Power Plan 2.0 contrasts starkly with past rulemakings of the power sector under Section 111 of the Clean Air Act. For example, there have always been multiple public hearings associated with power sector regulations, and comment periods have been as long as 165 days for the proposed Section 111(d) rule in 2014 and 192 days on the proposed repeal of the Clean Power Plan in 2018. The Agency’s decision to limit severely opportunities for public input in comparison to past rulemakings is especially troubling because the Clean Power Plan 2.0 is a much broader effort with more expansive effects. The American people and the communities we represent must have adequate time to review, reflect, and comment on the proposal and its far-reaching impacts.” The EPA has scheduled no public hearings to date on the plan in either West Virginia or Virginia. Senators who signed on to Capito’s letter include Senators John Barrasso (R-Wyo.), John Boozman (R-Ark.), Katie Britt (R-Ala.), Ted Budd (R-N.C.), Bill Cassidy (R-La.), John Cornyn (R-Texas), Kevin Cramer (R-N.D.), Mike Crapo (R-Idaho), Ted Cruz (R-Texas), Steve Daines (R-Mont.), Deb Fischer (R-Neb.), Lindsey Graham (R-S.C.), John Hoeven (R-N.D.), James Lankford (R-Okla.), Mike Lee (R-Utah), Cynthia Lummis (R-Wyo.), Roger Marshall (R-Kan.), Pete Ricketts (R-Neb.), Jim Risch (R-Idaho), Mike Rounds (R-S.D.), Eric Schmitt (R-Mo.), Tim Scott (R-S.C.), Dan Sullivan (R-Alaska), Thom Tillis (R-N.C.), Tommy Tuberville (R-Ala.), JD Vance (R-Ohio), and Roger Wicker (R-Miss.). Noticeably absent from the list is Democrat Joe Manchin of West Virginia, who works with Capito in the U.S. Senate.

Santos fights to conceal identities of people helping him remain free while under indictment - — Rep. George Santos is seeking to keep private the identities of the people who guaranteed his bail bond by appealing a federal magistrate judge’s ruling earlier this week that ordered their names be made public.The first-term Republican from Long Island was indicted last month and pleaded not guilty to 13 counts of wire fraud, money laundering, theft of public funds and other charges. He was released on a $500,000 bail bond — but only on the condition that several individuals, known as sureties, guaranteed the bond, meaning they would be legally responsible for the money if Santos were to flee.When the sureties appeared in court, his lawyers moved to redact their names and seal the proceedings. On Tuesday, a magistrate judge ruled that the sureties’ identity should be made public after a group of news organizations requested the release of their names. The judge, however, ordered that the information remain sealed until Santos had the opportunity to appeal her decision. In a court filing Friday, Santos’ lawyer, Joseph Murray, suggested that publicly identifying the sureties would subject them to harassment and intimidation. Murray wrote that three people had initially offered to guarantee his client’s bond, but that in the wake of the “media frenzy” surrounding Santos’ indictment, one of the three “had a change of heart and backed out.”Murray said Santos has been the target of attacks that are “extremely angry, anti-gay, anti-Republican and all around anti-social,” arguing that his sureties, if publicly named, would be vulnerable to similar behavior.“It is reasonable to conclude that if Defendant’s suretors are identified, that the attacks and harassment will commence against them too,” Murray wrote. “Moreover, given the political temperature in this Country and acts of political violence that occur, the privacy interests of these suretors are far more concerning, especially considering their ages and respective employment.”

Surprise Supreme Court decision gives boost to Democratic hopes -A surprising Voting Rights Act decision at the Supreme Court has added a new dimension to the fight for House control ahead of the 2024 election cycle. The ruling paves the way for the creation of a second Black-majority congressional district in Alabama, but it is also likely to impact voting map fights in states like Louisiana and Georgia. With active lawsuits challenging congressional boundaries as racial gerrymanders across the country, election handicapper Cook Political Report quickly shifted five House district ratings toward Democrats in the wake of the decision. The court’s decision has also left a sense of relief in the party after fears the high court would uphold Alabama’s GOP-drawn map proved wrong. “This decision will affect redistricting cases across the country and help deliver a House of Representatives that better reflects the diversity of our nation, ensuring all voices are represented equally,” the Democratic Congressional Campaign Committee said in a statement. Expectations ran high that the Supreme Court would use Alabama’s case to narrow Section 2 of the Voting Rights Act, which prohibits voting practices that result in racial discrimination. The court temporarily blocked a lower ruling that cited the provision in striking down Alabama’s map.

House Oversight leaders clash after viewing FBI document on Biden allegations - House Oversight and Accountability Committee leaders briefed by the FBI on the details of a tip into potential wrongdoing by President Biden disagreed on basic conclusions, including whether it’s part of an ongoing probe. Chairman James Comer (R-Ky.) vowed to continue with his plans to hold FBI Director Christopher Wray in contempt for failing to physically turn over the document lawmakers reviewed alongside agents during an hour and a half long briefing. The FBI called the move an unwarranted escalation. Comer said the tip, memorialized in a document he subpoenaed from the FBI, is part of an ongoing investigation and alleges Biden may have accepted a bribe during his tenure as vice president. “Given the severity and complexity of the allegations contained within this record, Congress must investigate further,” he said after the Monday briefing. “This is only the beginning. It appears this investigation is part of an ongoing investigation, which I assume is in Delaware.” Rep. Jamie Raskin (Md.) the top Democrat on the panel, on the other hand, said the FBI decided not to advance its initial investigation into the matter, determining the secondhand information did not warrant followup by the group then-Attorney General BIll Barr tasked with assessing it. “What we’re talking about here is a confidential human source reporting a conversation with someone else. So we’re talking about is secondhand hearsay,” Raskin said, adding that the source “had no way of knowing about the underlying veracity of the things that he was being told.” “And they did whatever investigative due diligence was called for in that assessment period, and they found no reason to escalate it from an assessment to a so-called preliminary investigation,” he added. “FBI prosecutorial protocol is whether there are articulable facts giving rise to suspicion of criminal activity. So they apparently decided there was not, and they called an end to the investigation.” Both CNN and NBC have reported that a team led by then-U.S. Attorney Scott Brady was unable to corroborate the 2020 allegation. Comer said the panel will meet Thursday to vote on whether to hold Wray in contempt of Congress because “the FBI again refused to hand over the unclassified record to the custody of the House Oversight Committee.” In a statement Monday the FBI stressed the accommodations given to the panel. “The FBI has continually demonstrated its commitment to accommodate the committee’s request, including by producing the document in a reading room at the U.S. Capitol. This commonsense safeguard is often employed in response to congressional requests and in court proceedings to protect important concerns, such as the physical safety of sources and the integrity of investigations,” the agency said in a statement. “The escalation to a contempt vote under these circumstances is unwarranted.” Comer issued a subpoena last month compelling Wray to produce any FD-1023 forms — records of interactions with confidential sources — from June 2020 that contain the word “Biden.” He has claimed the form contains information related to “an alleged criminal scheme involving then-Vice President Biden and a foreign national relating to the exchange of money for policy decisions.” Both Comer and Raskin agreed that the information came from a highly credible paid source the FBI has relied on for years.

Trump charged over classified documents in 1st federal indictment of an ex-president — Donald Trump said Thursday that he has been indicted on charges of mishandling classified documents at his Florida estate, igniting a federal prosecution that is arguably the most perilous of multiple legal threats against the former president as he seeks to reclaim the White House. The Justice Department did not immediately publicly confirm the indictment. But two people familiar with the situation who were not authorized to discuss it publicly said that the indictment included seven criminal counts. One of those people said Trump's lawyers were contacted by prosecutors shortly before he announced on his Truth Social platform that he had been indicted. The indictment enmeshes the Justice Department in the most politically explosive prosecution in its long history. Its first case against a former president upends a Republican presidential primary that Trump is currently dominating, and any felony charges would raise the prospect of a yearslong prison sentence. Within 20 minutes of his announcement, Trump, who said he was due in court Tuesday afternoon, had begun fundraising off it for his 2024 presidential campaign. He declared in a video, "I AM AN INNOCENT MAN!" and repeated his familiar refrain that the investigation is a "witch hunt." The case adds to deepening legal jeopardy for Trump, who has already been indicted in New York and faces additional investigations in Washington and Atlanta that also could lead to criminal charges. As the prosecution moves forward, it will pit Trump's claims of sweeping executive power against Attorney General Merrick Garland's oft-stated mantra that no person, including a former commander in chief, should be regarded as above the law. The indictment arises from a monthslong investigation by special counsel Jack Smith into whether Trump broke the law by holding onto hundreds of documents marked classified at his Palm Beach property, Mar-a-Lago, and whether Trump took steps to obstruct the government's efforts to recover the records. Prosecutors have said that Trump took roughly 300 classified documents to Mar-a-Lago after leaving the White House, including some 100 that were seized by the FBI last August in a search of the home that underscored the gravity of the Justice Department's investigation. Trump and his team have long seen the special counsel investigation as far more perilous than the New York matter — both politically and legally. Campaign aides had been bracing for the fallout since Trump's attorneys were notified that he was the target of the investigation, assuming it was not a matter of if charges would be brought, but when.

Trump indicted on seven federal charges in documents case -- Former President Donald Trump has been indicted by a federal grand jury in Florida, according to a statement by Trump on his own social media platform released Wednesday evening. He is to appear for arraignment in a Miami courtroom next Tuesday. The charges all relate to Trump’s having taken thousands of official documents, hundreds of which were classified, when he left the White House in January 2021, and his refusal to return them when subpoenaed by the Department of Justice, which was acting on behalf of the National Archives and Records Administration. The DOJ and Special Counsel Jack Smith, who is overseeing the investigation, have said nothing officially and the indictment itself remains under seal until the arraignment. But press accounts, based on unattributed leaks, have detailed the charges as including willful retention of documents, false statements, conspiracy to obstruct justice, concealment, and “gathering, transmitting or losing defense information,” an offense under the 1917 Espionage Act. The full details of the charges and the supporting evidence will only be known after the Tuesday, 3 p.m. arraignment, unless the judge unseals the indictment before then. In responding to the indictment, Trump demagogically declared that the DOJ was engaged in “election interference” and appealed to Republicans in Congress to make an investigation of the DOJ and FBI their “number one priority.” His campaign immediately began fundraising on the indictment, sending out an email from Trump, declaring, “This is nothing but a disgusting act of Election Interference by the ruling party to ELIMINATE its opposition and amass total control over our country.” It is the first time in American history that a former president has faced federal charges of any kind, let alone felony charges that carry with them lengthy prison terms if prosecutors succeed in obtaining a conviction. Trump is both an ex-president and leading in the polls to become the Republican presidential candidate in 2024. The indictment brings to a new level the political warfare within the US ruling elite, which has found expression in a series of unprecedented events: the special counsel investigation of a sitting president on charges of collaboration with Russia; two impeachments by the House of Representatives, which failed in the US Senate; the attempted fascistic coup by Trump aimed at overturning the 2020 presidential election and the Constitution and remaining in power; and now a battery of legal charges against an ex-president.

Trump stashed military secrets throughout his home, indictment says --A federal indictment unsealed Friday charges former President Donald Trump with 37 felony counts stemming from an investigation into the presence of a trove of classified information at his Florida estate and other locations after he left office. Prosecutors led by special counsel Jack Smith allege that Trump arranged to remove a massive collection of highly sensitive classified material — much of which consists of intelligence about the “defense and weapons capabilities” of the United States and foreign countries — to his private residence as he left the White House in January 2021. He had aides stash those records in boxes that also included personal items and ordered them shipped to his estate in Mar-a-Lago at the end of his tenure, according to the indictment. The charging document also says that on at least two occasions, Trump showed classified records to visitors without security clearances at his golf club in Bedminster, New Jersey — including the map of a military operation to a representative of his political committee. As the Justice Department began inquiring about the records stashed at Trump’s home, the indictment alleges, Trump ordered an aide — Walt Nauta — to begin moving boxes with classified records to obscure them from investigators. Trump did this without informing his attorney, who was preparing to search Trump’s property in compliance with court-authorized subpoenas to recover the records.Trump is facing 31 counts of violating the Espionage Act through “willful retention” of classified records and six counts related to his alleged effort to obstruct the investigation. Nauta was also charged with five felonies, including obstruction of justice and making false statements to the FBI. “We have one set of laws in this country,” said Smith, briefly addressing the media after the unsealing of the indictment. “They apply to everyone.The evidence arrayed by the Justice Department paints a devastating picture of an ex-president intent on squirreling away national military secrets at his homes, irrespective of potential consequences. Trump, who took office in 2017 after a campaign in which he lambasted Hillary Clinton for jeopardizing classified information on an unsecured email server, is portrayed as haphazardly stashing documents in different corners of his home — with open access to employees of his club. At one point in December 2021, Nauta found several boxes toppled in Trump’s Mar-a-Lago storage room, with papers strewn about the floor, including some labeled as “Five Eyes” intelligence — a reference to the group of nations that are most closely allied with the United States and engage in a higher level of intelligence sharing. Nauta took two photos of the spill and shared them with another Trump employee. If Trump is ultimately tried and convicted on the 37 counts, he faces a potentially lengthy prison term. Each count of willful retention of records carries a maximum 10-year sentence, while the six obstruction charges each carry a 20-year maximum sentence. False statements charges each carry a five-year maximum. The indictment is Trump’s second in the past three months. He also faces a 34-count indictment in New York for allegedly falsifying business records in connection with hush money payments to a porn star to prevent her from alleging an affair in the final weeks of the 2016 election. And two more criminal probes could result in further charges: a second probe by Smith of Trump’s bid to subvert the 2020 election and an investigation by Atlanta-area district attorney Fani Willis, also about Trump’s election gambit.

'Devastating': Current and former officials shocked over military secrets found at Mar-a-Lago - The unsealed indictment on former President Donald Trump’s handling of classified documents has current and former national security officials claiming the case is “devastating” against him and that “damage” may have been done to U.S. national security. Trump is facing 31 counts of violating the Espionage Act through “willful retention” of classified records and six counts related to his alleged effort to obstruct the investigation, according to the 49-page document released Friday. The indictment also alleges that Walt Nauta, a Trump aide during his presidency and now in private life, moved boxes with classified records to obscure them from investigators. The indictment includes information about the kinds of documents in the former president’s possession, some of them “regarding defense and weapons capabilities of both the United States and foreign countries; United States nuclear programs; potential vulnerabilities of the United States and its allies to military attack; and plans for possible retaliation in response to a foreign attack.” “This is a terrible thing,” said a senior Defense Department official. “If laws were broken, he must be accountable. Must. I think that’s where the majority of reasonable military and national security folks are, regardless of their political leaning. “But it’s also a terrible thing for the nation to have to see a president go through the federal criminal process,” added the official, who was granted anonymity to speak candidly on a sensitive issue. The more than 100 documents seized from Trump’s office in a storage room at his Mar-a-Lago club in Florida ranged from Confidential to Top Secret. Images released along with the indictment showed stacks of boxes in open areas, with one showing them lining the walls of a bathroom. Those discoveries led special counsel Jack Smith to issue the first-ever federal indictment of a former president. It’s Trump’s second indictment in three months following charges from the Manhattan district attorney over alleged hush money payments to improve his 2016 election chances. 📣 We have a new app. Download the upgraded version for iOS or Android. The latest legal woe for Trump has his former aides fuming. “The indictment is devastating. Those who defended Trump before the charges were made public, or those who have not yet spoken, should very carefully weigh how history will consider their statements,” John Bolton, Trump’s third national security adviser, told POLITICO. Others are more worried about what it means for the United States to have had such sensitive papers out in the open. “The classified documents described in the indictment are some of the most sensitive information we possess,” said Mick Mulroy, a senior Pentagon official in the Trump administration. “This type of information should never be removed from a secured facility and once discovered should have been immediately returned.” Mulroy suspects that an intelligence and security review may be conducted alongside the criminal proceedings to discover “any potential damage that may have been done to our national security.” Trump maintains his innocence, insisting without evidence that President Joe Biden has weaponized the Justice Department to keep him from winning the 2024 election. It’s “the greatest witch hunt of all time,” he told Fox News on Thursday.

Christie: Details of Trump indictment ‘devastating’ -Former New Jersey Gov. Chris Christie (R), a GOP presidential candidate for 2024, said the details of the federal indictment against former President Trump are “devastating.” “The fact is that these facts are devastating,” Christie told CNN’s Jake Tapper in an interview on Friday. Christie noted that the indictment accuses Trump of directing what documents were to be packed in boxes upon leaving the White House at the end of his presidency, that they should be sent to Mar-a-Lago and where they would be placed while they were at Mar-a-Lago. He said Trump is also accused of directing the documents to be taken with him to his golf club in Bedminster, N.J., when he went there during the summer and continuing to “stonewall” investigators who were trying to get the documents returned to government recordkeepers. “The bigger issue for our country is, is this the type of conduct that we want from someone who wants to be president of the United States?” Christie said. The indictment alleges that the documents that Trump had in his possession at Mar-a-Lago included information about the U.S. nuclear program, defense capabilities and potential vulnerabilities to attacks. It states that the unauthorized disclosure of this information could put national security, foreign relations, the safety of the military, human sources and intelligence-gathering methods at risk.

National Review editorial board: Impossible to read Trump indictment and ‘not be appalled’ The editorial board for The National Review said one cannot read the allegations outlined in the federal indictment against former President Trump and “not be appalled.” The editorial board said in a post on Saturday that it has in the past pointed out times that it believes Trump’s opponents have manipulated the law to pursue politically motivated legal claims against him. It added that the members of the board do not like the precedent of a federal prosecutor who serves under the president indicting the president’s lead rival for reelection. “That said, it is impossible to read the indictment against Trump in the Mar-a-Lago documents case and not be appalled at the way he handled classified documents as an ex-president, and responded to the attempt by federal authorities to reclaim them,” the editorial states. The board for the conservative news outlet noted that many of the boxes that Trump had moved from the White House to Mar-a-Lago at the end of his presidency only contained newspaper clippings, photos, cards and letters, but they also included hundreds of documents with classified markings. The information on the documents covered information relating to U.S. nuclear programs, defense capabilities, vulnerabilities and plans for potential retaliatory action in the event of an attack from another country, according to the indictment. The board said Trump no longer had a right to possess these documents after his term ended, and he stored them “recklessly” in locations like his bedroom, a bathroom and a ballroom at Mar-a-Lago. It also mentioned federal prosecutors’ allegations that Trump ignored requests for the documents to be returned for months and attempted to keep investigators from obtaining the documents he had. The editorial board argued the “most damning” part of the indictment is the transcript of the conversation Trump had in which he showed one document to a reporter who was not authorized to see it. “Equally damning, particularly for someone who was and would like again to be the nation’s chief executive, responsible for the enforcement of the laws, is the evidence that Trump not only deceived the investigators and the grand jury, but his own lawyers — knowing and intending that they would consequently obstruct the investigation,” the editorial states. The indictment alleges that Trump had an aide, who has also been indicted, move boxes of documents away from a storage room when one of his attorneys came to Mar-a-Lago to confirm that the subpoena was being fully complied with. This caused his legal team to wrongly tell investigators that all documents had been turned over.

Trump to plead not guilty on charges related to classified documents - Donald Trump will plead not guilty to charges connected to his handling of classified national security records, the former president told Fox News on Friday. Trump told Fox News that he’s “totally innocent” and that the indictment is “election interference at the highest level.” The former president, who is seeking reelection to the White House in next year’s election, announced Thursday that he had been indicted on charges connected to his handling of classified national security records. He wrote on social media that he had been summoned to federal court on Tuesday in Miami, where prosecutors are expected to charge Trump with seven criminal counts. The indictment made public on Thursday apparently stems from an FBI raid of Trump’s Mar-a-Lago residence last August, when the federal government recovered more than 300 documents with classified markings, including some materials labeled “top secret,” seized months after Trump’s lawyers turned over 15 initial boxes of documents. The special counsel has been investigating Trump’s handling of classified documents that were brought to Mar-a-Lago after he left the White House in 2021. On Friday, CNN reported that Trump acknowledged on a recording in 2021 that he kept “secret” military information that he had not declassified. Trump has publicly claimed that all the documents he brought with him to Mar-a-Lago were declassified. POLITICO has not independently verified the recording of Trump reported by CNN.

Trump claims DOJ indictment is among most ‘horrific abuses’ of power in US history Former President Trump claimed the federal indictment the Justice Department (DOJ) filed against him is among the most “horrific abuses of power” in U.S. history. Trump said Saturday during remarks at a Georgia GOP convention event in Columbus, Ga., that the investigation into him is a “witch hunt” and an example of “election interference” with the upcoming 2024 presidential election. “The ridiculous and baseless indictment of me by the Biden administration’s weaponized ‘department of injustice’ will go down as among the most horrific abuses of power in the history of our country,” he said. Trump added that the “vicious persecution” from the DOJ is a “travesty of justice,” claiming that Biden is only trying to jail his top political opponent. He compared the investigations into him to what happens in “Stalinist Russia” and China. Trump has been indicted on 37 charges related to his handling of classified and sensitive documents that were taken from the White House to Mar-a-Lago at the end of his presidency. The charges include 31 counts of willful retention of national defense information in violation of the Espionage Act, conspiracy to obstruct justice, corruptly concealing a document or record and making false statements and representations. The unsealed indictment also includes wide-ranging details alleging that Trump held onto the documents despite efforts from government recordkeepers to obtain them and repeatedly took steps to try to prevent the investigators from finding them. The documents included information about U.S. nuclear programs, defense capabilities, vulnerabilities and plans for a retaliatory strike in the event of an attack from another country, among other sensitive information. Trump argued during his remarks that his retention of documents should fall under the Presidential Records Act, which declares that all records for presidents and vice presidents belong to the public and should be provided to the National Archives. He said violations of the law are “not a criminal act,” so he should not be facing any indictment for his actions. He noted that the indictment does not mention the law, which governs presidents turning over documents at the end of their presidencies. The former president also repeated his past claims that he declassified the documents he took.

Trump loses two lawyers just hours after being indicted - Two of Donald Trump’s top lawyers abruptly resigned from his defense team on Friday, just hours after news broke that he and a close aide were indicted on charges related to their handling of classified documents. Jim Trusty and John Rowley, who helmed Trump’s Washington, D.C.-based legal team for months and were seen frequently at the federal courthouse, indicated they would no longer represent Trump in matters being investigated and prosecuted by special counsel Jack Smith, who is probing both the documents matter and efforts by Trump to subvert the 2020 election. The resignations were shortly followed by an announcement from Trump himself confirming that a close aide, Walt Nauta, had also been indicted by federal prosecutors. Nauta, a Navy veteran, had served as the former president’s personal aide and was a ubiquitous presence during his post White House days. In their place, Trump indicated that Todd Blanche — an attorney he recently retained to help fight unrelated felony charges brought by Manhattan district attorney Alvin Bragg in April — would lead his legal team, along with a firm to be named later. Trump and his team have liked Blanche, who is expected to play a more elevated, central role. Though Trump has had shakeups of his legal teams before, the current changes deprive Trump of some of his most seasoned legal hands at the most perilous moment of his legal travails. And it follows the recent departure of a third lawyer who had helped guide Trump’s defense in the documents matter: Tim Parlatore, who cited internal disagreement, particularly with longtime Trump hand Boris Epshteyn, as his reason for abruptly quitting.

Trump-appointed judge to oversee first indictment court appearance - — Florida Federal Judge Aileen Cannon, a nominee of Donald Trump who was widely criticized for ruling in the former president’s favor during an earlier phase of the classified documents case, is expected to oversee his criminal indictment — at least at first. Cannon is reportedly set to preside over Trump’s first appearance Tuesday in Federal District Court in Miami, the latest twist in a legal battle of historic magnitude. It remains unclear at this stage, however, if Cannon will ultimately preside over the entire case. Two people close to Trump, who were granted anonymity to speak freely, did not dispute that Cannon is expected to initially oversee the case, although it is unclear for how long. Trump was indicted Thursday in connection with his handling of classified documents after he left the White House, a case stemming from his alleged retention of sensitive national security documents at his residence in Florida and, further, alleged efforts to impede authorities’ attempts to retrieve them. While Trump scored a possible win with Cannon, on Friday he also suffered a loss when two members of his legal team, John Rowley and Jim Trusty, left. The exact charges against the former president are not yet public. Trump’s team leaked on Friday that Cannon is slated to preside over the initial stage of the massive case, something that could be a vital assignment for them. Cannon already has a history with the classified documents investigation. After the FBI seized classified documents from Mar-a-Lago last August, Trump made an unusual request for a court-appointed special master to review the material taken in the raid. Trump’s request was assigned to Cannon, who sided with him and appointed a special master before she was eventually overturned on appeal.Some legal experts publicly bashed Cannon for that ruling, claiming that she was overly deferential to Trump’s legal team and was generally inexperienced. Trump’s former attorney general Bill Barr even told Fox News that the ruling “was wrong” and “deeply flawed in a number of ways.”

Jack Smith highlights ‘the scope and the gravity’ of charges against Trump - Special counsel Jack Smith made his first public appearance just hours after unsealing the indictment of former President Trump, underscoring the seriousness of the case and pushing back on a wave of GOP criticism brewing since the inception of the Mar-a-Lago investigation. “This indictment was voted by a grand jury of citizens from the Southern District of Florida. And I invite everyone to read it in full to understand the scope and the gravity of the crimes charged,” Smith said. “The men and women of the United States intelligence community and our Armed Forces dedicate their lives to protecting our nation and its people. Our laws that protect national defense information are critical to the safety and security of the United States, and they must be enforced. Violations of those laws put our country at risk.” The Justice Department on Friday unveiled 37 counts against Trump, the bulk of which — 31 counts — are for violations of the Espionage Act, which bars retention of national defense information. A breakdown of the documents for which Trump is facing charges details that most of them dealt with intelligence collected on foreign countries or American military capabilities. It’s just a fraction of the more than 300 that were recovered from Mar-a-Lago over many months. The other counts come under charges for obstruction of justice, making false statements to investigators, corruptly concealing documents, and associated conspiracy charges. Trump’s valet, Walt Nauta, also was indicted. Smith noted Trump is presumed innocent until proven guilty, but he pushed back implicitly at criticism from Trump and the GOP at large, who have accused the investigation of being politically motivated. The strength of Smith’s case, and the extent of the evidence they gathered in the probe, was largely unclear until the release of the indictment shortly before his statement. “Adherence to the rule of law is a bedrock principle of the Department of Justice. And our nation’s commitment to the rule of law sets an example for the world. We have one set of laws in this country, and they apply to everyone,” Smith said. “Applying those laws, collecting facts — that’s what determines the outcome of an investigation. Nothing more, nothing less.”

Propaganda Restricts Speech More Than Censorship Does: Notes From The Edge Of The Narrative Matrix – Caitlin Johnstone --The biggest impediment to free speech is people’s belief that they have it. Not censorship. Not refusal to platform critical voices. Not the war on journalism. It’s the fact that most people are propagandized into saying what the powerful want them to say, and don’t know it.What makes our dilemma so historically unique is that we live under an empire which makes extensive use of the post-Bernays science of mass-scale psychological manipulation to trick its subjects into believing that they are thinking, speaking, and gathering information freely. In this way our rulers suppress any revolution long before it starts, not by making people’s lives better, nor by violent repression, but by manipulating people into thinking there’s nothing to revolt against, because they have no rulers and they are already free.In our civilization most people are thinking, speaking, gathering information, working, shopping, moving and voting exactly as our rulers want them to, because these mass-scale psychological conditioning systems have been imposed to keep human behavior aligned with the empire. We are trained to believe we are free while behaving exactly how our rulers want us to behave, and to look down on other nations and shake our heads at how unfree their people are.What the average mainstream partisan really means when they say they want “free speech” is they want to be able to regurgitate the power-serving narratives that were put in their mind by the powerful. That’s not free speech, it’s deeply enslaved speech. But they can’t see it. By design.This problem can be addressed simply by bringing awareness to it in every way we can. Manipulation only works if you don’t know it’s happening, so drawing attention to it and describing how it happens in as many ways as possible helps people start seeing through it.

When Your Own Government Confirms It Paid Censors To Silence You... by Daisy Luther via The Organic Prepper blog - If you’ve been around for very long, you know this website has suffered repeated hits for our content. We’ve been defunded, we’ve been hit by algorithmic changes that make it harder for people to find us, and we’ve been classified as a “disinformation” site. All of this has happened despite the fact we offer factual coverage and often use mainstream sources that are not targeted by censors. While I’ve had my suspicions since the attacks first began, imagine the sick feeling in the pit of my stomach when I recently read an expose by the Washington Examiner in which the United States government readily admitted giving funding to the very business that abruptly defunded my website back in 2021. It’s hard to believe that I’m writing this about the government of the United States of America, but here we are in 2023 with our own government striving to make at least half the country out to be terrorists and second-class citizens. An exclusive report by the Washington Examiner states: The State Department “stands by” its widely scrutinized grant to a group the Washington Examiner revealed is blacklisting conservative media outlets, according to a letter to Congress. Rep. Darrell Issa (R-CA) put the State Department’s Global Engagement Center on blast in a March letter to the agency and demanded an investigation into its $100,000 grant in 2021 to the Global Disinformation Index, which has fed conservative website blacklists to advertisers to defund disfavored speech. The agency issued a response to the congressman on Friday, telling him in a letter obtained by the Washington Examiner that it has no regrets over the taxpayer-backed award… But it wasn’t just a grant of $100,000. At least $330,000 was received from US-State-Department-related entities, and it’s possible the price tag goes even higher. In another article, the Washington Examiner reported these ties: The first State Department-backed group that has supported GDI is the National Endowment for Democracy, a nonprofit group that receives nearly all of its funding from annual congressional appropriations. According to financial statements, the NED received over $300 million from the State Department in 2021. Critics have argued that the endowment, which Congress authorized in 1983, is essentially a government grantmaking body despite its legal status as a private entity. In 2020, the NED granted $230,000 to the AN Foundation, GDI’s group that also goes by the Disinformation Index Foundation, documents show. And that’s not all – further government funding of censorship entities is discussed in the article. Potentially there are millions of dollars granted to organizations that in turn fund censorship groups.

FBI says artificial intelligence being used for 'sextortion' and harassment (Reuters) - The Federal Bureau of Investigation has warned Americans that criminals are increasingly using artificial intelligence to create sexually explicit images to intimidate and extort victims. In an alert circulated this week, the bureau said it had recently observed an uptick in extortion victims saying they had been targeted using doctored versions of innocent images taken from online posts, private messages or video chats."The photos are then sent directly to the victims by malicious actors for sextortion or harassment," the alert said. "Once circulated, victims can face significant challenges in preventing the continual sharing of the manipulated content or removal from the internet." The bureau said the images appeared "true-to-life" and that, in some cases, children had been targeted. The FBI did not go into detail about the program or programs being used to generate the sexual imagery but did note that technological advancements were "continuously improving the quality, customizability, and accessibility of artificial intelligence (AI)-enabled content creation."

FBI arrests Texas businessman linked to impeachment of state Attorney General Ken Paxton - — The FBI on Thursday arrested a businessman at the center of the scandal that led to Texas Attorney General Ken Paxton’s historic impeachment, a move that came amid new questions about the men’s dealings raised by financial records the Republican’s lawyers made public to try to clear him of bribery allegations. Nate Paul, 36, was taken into custody by federal agents and booked into an Austin jail in the afternoon, according to Travis County Sheriff’s Office records. It was not immediately clear what charges led to his arrest, but the records showed he was being held on a federal detainer for a felony. Paul’s arrest followed a yearslong federal investigation into the Austin real estate developer — a probe that Paxton involved his office in, setting off a chain of events that ultimately led to his impeachment last month. Lawyers for Paul did not immediately respond to requests for comment. One of Paxton’s defense attorneys, Dan Cogdell, said he had no additional information on the arrest. The FBI declined to comment, and a spokesman for federal prosecutors in West Texas did not respond to inquiries. FBI agents examining Paul’s troubled real estate empire searched his Austin offices and palatial home in 2019. The next year, seven of Paxton ’s top deputies reported the attorney general to the FBI on allegations of bribery and abusing his office to help Paul, including by hiring an outside lawyer to examine the developer’s claims of wrongdoing by federal agents. The allegations by Paxton’s staff prompted the FBI to investigate, which remains ongoing, and are central to articles of impeachment overwhelmingly approved by the GOP-led state House of Representatives.

Jamie Dimon’s Deposition in Epstein Case Reveals Email Stating that Dimon Was to Be Treated to “Heavy Snacks” at Epstein’s Home - By Pam Martens and Russ Martens: After much delay and legal protests by JPMorgan Chase, its Chairman and CEO, Jamie Dimon, was forced by a Manhattan federal court to testify under oath in a deposition about what he personally knew about the bank’s long-term customer relationship with child sex trafficker Jeffrey Epstein. (Epstein died in a Manhattan jail on August 10, 2019. His death was ruled a suicide by the medical examiner.)The deposition was held last Friday, May 26, at the offices of JPMorgan Chase in Manhattan. In a surprise move, opposing counsels agreed yesterday to release thetranscript of the deposition, with some segments marked as sensitive and redacted.The deposition arose as a result of two lawsuits being heard by Judge Jed Rakoff in the U.S. District Court for the Southern District of New York. One lawsuit is on behalf of an alleged sexual assault victim of Epstein, Jane Doe 1. The other lawsuit was brought by the Attorney General’s office for the U.S. Virgin Islands (USVI) where Epstein maintained a secluded compound on a private island he owned.According to Dimon’s version of events, he lived a cloistered existence in a corner office on the 48^th floor of 270 Park Avenue where even the executives who directly reported to him and worked only “a couple hundred feet” away from his office, never shared with Dimon the bank’s many years of internal investigations about Epstein’s massive cash withdrawals from his accounts at the bank, that sometimes averaged more than $20,000 to $40,000 a month, or its investigations of Epstein’s sex trafficking of underage girls. According to the lawsuits, Epstein had accounts at the bank from 1998 to 2013, at times amounting to hundreds of millions of dollars.According to Dimon, even the former Director of the Division of Enforcement at the Securities and Exchange Commission, Stephen Cutler, who became General Counsel at JPMorgan Chase in February of 2007, worked in the office next door to Dimon andreported to Dimon, didn’t share his numerous objections with Dimon to keeping the Epstein accounts at the bank.An email was introduced by opposing counsel during the deposition, showing that as far back as 2011, Cutler had written in an email referring to Epstein that “This is not an honorable person in any way. He should not be a client.” According to the deposition transcript, it was two executives who worked on the 48^th floor with Dimon, Jes Staley and Mary Erdoes, who decided to retain Epstein as a client after his Florida indictment, arrest, jail term and after multiple internal investigations of his large cash withdrawals from his JPMorgan Chase accounts.Despite dozens of news articles about Epstein being indicted in Florida for soliciting sex with a minor in 2006; despite bestselling author, James Patterson’s 2016 book, “Filthy Rich,” covering Epstein’s sexual assaults on young girls; notwithstanding Julie Brown’s blockbuster series on Epstein’s crimes against young women in the Miami Herald in 2018, which caused a viral media storm, Dimon’s under-oath position in the deposition was this:“I don’t recall knowing anything about Jeffrey Epstein until the stories broke sometime in 2019. And I was surprised that I didn’t even — had never even heard of the guy, pretty much, and how involved he was with so many people.”

Proposed 30% Tax on Bitcoin Mining Energy Use Dies in U.S. Debt Deal - -- A tax proposed by the Biden Administration to curtail Bitcoin mining in the United States has apparently been shelved indefinitely, thanks to the terms of a compromise over the U.S. debt ceiling. The tax in question was known as the Digital Asset Mining Energy (DAME) excise tax, and it was originally made public by the White House in early May as part of a broader budget proposal. Primarily targeting the environmental impact of the crypto industry, DAME as originally envisioned would have required all crypto miners in the United States to pay a tax equivalent to 30% of the cost of the electricity these companies use. Such a tax would not only be devastating to a business that relies on cheap power costs, but would also completely ignore the reality that a huge number of bitcoin miners today are reliant on renewable energy. However, this plan, and indeed all the White House’s proposals for economic functioning, have been dramatically hampered by the latest round of negotiation over the U.S. debt ceiling. In essence, without a vote of confidence from an embittered Congress, the federal government would have defaulted on its loans, creating a crisis for the dollar. To continue the normal functioning of the global reserve currency, a deal was reached in late May that largely focused on concessions over economic policy. It’s thanks to this deal that the DAME act seems well and truly shuttered. The crypto community has generally reacted to this news with celebration, as some of the largest mining firms are seeing massive stock rallies on top of a year that has already been successful. For the moment, it does not seem like there is political will to carry out an attack on Bitcoin from this angle. Just because this plan has failed, though, does not mean that crypto miners are safe from similar taxes on other fronts. Considering that this proposal collapsed over the federal government’s spending, Bitcoiners should be wary of the White House’s arguments that the DAME tax would generate billions for federal coffers. In other words, it seems very likely that similar attacks on crypto mining will be proposed in the future, possibly in a reworked fashion to seem more economically valuable or otherwise accompanied by increased efforts to link crypto mining and climate change.

JPMorgan Expects Retail Demand for Bitcoin to Remain Strong as Reward Halving Approaches -In anticipation of the next halving event for Bitcoin, researchers from JPMorgan have declared their belief that the underlying asset will remain strong. An integral component of Bitcoin’s long-term viability is the cap on the volume of coins that can be mined. There will only ever be 21 million bitcoin and there is a gradual taper from the early days of extremely easy mining to a tiny crawl by the very end of bitcoin mining’s lifespan. The mechanism for this gradual taper takes the form of the “halving” event, when certain passed milestones in bitcoin mined will automatically cut all mining rewards in half. In other words, the same amount of equipment and electricity will create half as many assets as it had a day before. The next halving is about a year away. This event has happened three times in Bitcoin’s past, and according to research published in June by JPMorgan, the last two halvings led to a rally in bitcoin’s price. The 2024 halving seems well on track to continue this trend, as the report claims that a halving “would mechanically double bitcoin production cost to around $40,000, creating a positive psychological effect.” Specifically, the increase in production cost would help raise the floor for bitcoin’s valuation, and lead to an increase in demand for coins in circulation. Institutional investment has diminished somewhat, the report claims, but Ordinals and the BRC-20 protocol have been attracting lots of attention from retail investors. This endorsement of future performance is particularly interesting from JPMorgan, as the firm has historically displayed a skeptical attitude for Bitcoin. One of the main effects the halving will have on the Bitcoin community is its radical impact on miners. With such a sheer drop in productivity, mining firms will surely struggle to maintain market viability for the sheer output of equipment and electricity. Instead, only the firms that are the most well configured to run efficiently will be able to weather the storm. When less efficient miners are pushed out of the pool, this will leave these miners able to take home a bigger proportion of the pie. In the end, the halving will be a mechanism that forces the whole industry’s hardware to optimize. Indeed, to an untrained observer, it might be quite surprising that the community is full of predictions that the halving will only spell good things for Bitcoin. How could increased costs of production be good for business? The simple answer is that, because Bitcoin has already been halved many times before and “trimming the fat” of mining operations has historically led to more buzz from investment, Bitcoiners are assuming the same will take place again. The difficulty in acquiring fresh bitcoin will lead to increased interest in purchasing old ones, and the mining industry will be disrupted in a way that ultimately benefits it.

FTX lawsuits see crypto firms, influencers dial back endorsement deals - Crypto influencers are taking an extra cautious approach to endorsement deals since the collapse of crypto exchange FTX last year, which has seen several celebrities hit with a lawsuit for their alleged role in its promotion. In March, a $1 billion class-action lawsuit was filed alleging that eight influencers promoted “FTX crypto fraud without disclosing compensation.”Influencers told Cointelegraph that it has served as a wake-up call — those that endorse crypto firms need to understand their followers can take legal action against them in the future should that company turn unfavorable.For crypto vlogger Tiffany Fong, who gained fame by interviewing former FTX CEO Sam Bankman-Fried after the collapse, endorsing crypto firms on her social media isn’t of interest to her at the moment.“Since so many once reputable companies have collapsed, I don’t want to promote anything that could potentially rug customers,” Fong told Cointelegraph. Fong admitted she has received a lot of offers but hasn’t “responded to most of them,” as she believes the risks outweigh the reward. “I don’t know how much money I’ve turned down; I’m just not entertaining it at the moment.” DeFi Dad, who has 152,300 followers on Twitter, said that he had been proposed an opportunity to have his content sponsored by FTX. “I have no idea how much money I probably turned down by opting to not work with FTX but it was the best decision in retrospect,” he said.Marketing agencies that bring together influencers and brand deals have noticed fears from both sides of the business.Nikita Sachdev, CEO and founder of Luna PR, explained to Cointelegraph that it’s not only influencers who are becoming more cautious about endorsement deals, but also crypto firms themselves, noting: “The increased scrutiny and legal concerns have made both influencers and crypto firms more careful in their collaborations.” Sachdev pointed out that the extended crypto winter has forced crypto firms to tighten budgets and that there “has been an overall decline in influencer deals.”

SBF upset by criminal trial’s late evidence while FTX seeks sale of AI stock -- Former FTX CEO Sam Bankman-Fried claims prosecutors have missed discovery deadlines for key pieces of evidence required in the defense of a raft of fraud charges. On June 5, Bankman-Fried’s lawyers told United States District Judge Lewis A. Kaplan in a letter that the government had not turned over all of the contents of five electronic devices that were due for discovery by the end of March. A laptop and iPhone belonging to former Alameda Research CEO Caroline Ellison and a laptop belonging to FTX co-founder Gary Wang were among the devices. According to the letter from Bankman-Fried’s attorneys: “As the trial date is now less than four months away, the defense is concerned that the late production of such voluminous and important discovery will impact the preparation of the defense.” Bankman-Fried is due to face court on Oct. 2 on a litany of fraud charges, claims of illegal political donations, and bribes to the Chinese government. He does not want to adjourn the trial date and additional motions may be filed “if the newly produced discovery provides grounds for new motions,” according to the letter. The letter went on to state that the government has also failed to produce information related to FTX debtors. “These late productions have a cumulative effect on the defense’s ability to properly prepare for trial,” it said, before revealing how much is missing: “The five productions thus far are voluminous, totaling over 3.6 million documents and over 10 million pages.” The first four productions included around 1.1 million documents and the last one, received by the defense on May 25, includes just fewer than 2.5 million documents “which more than triples the documents in the existing discovery.” Meanwhile, FTX bankers tasked with bailing out the embattled company are reportedly looking towards cashing out shares in a company that's part of the currently hyped artificial intelligence sector.

Bankrupt Crypto Companies Are Fighting Over a Dwindling Pot of Money --FTX’s liquidator is trying to claw back $4 billion from the estate of Genesis Global Capital, another fallen crypto business. The liquidator of bankrupt crypto exchange FTX is trying to retrieve nearly $4 billion for creditors—from another bankrupt crypto firm. After a hearing on June 15, a court in the Southern District of New York will decide whether to let FTX pursue Genesis Global Capital (GGC), a crypto lender, over payments said to have been made shortly before the exchange’s collapse amid allegations of fraud. GGC, which filed for bankruptcy in January after being caught in the blowback from FTX’s implosion, only has about $5 billion in assets. If the court allows FTX to go ahead, a zero-sum legal battle will ensue. “If all the FTX claims are legitimate,” explains Ram Ahluwalia, CEO of wealth management firm Lumida Wealth, “the recoveries for Genesis creditors will be very low.” The impending legal battle underscores how tightly connected major crypto players had become before trouble started brewing in the markets a year ago. First, the collapse of FTX helped pull down other crypto companies, leaving many people out of pocket. Now creditors have to wait through the slow and painful unraveling of the various businesses’ intertwined estates. FTX, now under the management of Enron liquidator John Ray III, did not respond to a request for comment, nor did GGC or its parent company, Digital Currency Group. The basis of FTX’s claim against GGC are provisions in US bankruptcy laws designed to ensure that everyone owed money by a failed business receives a fair share. The law gives liquidators a right to recall any payments made by a stricken company in the 90 days prior to the bankruptcy, to avoid a scenario where creditors who pull their money out quickest get the biggest share of the pot. GGC and FTX’s business relationship was substantial. The former provided Alameda Research, FTX’s sister company, with large loans—at one point amounting to nearly $8 billion—to fund its capital-intensive crypto bets, while GGC used FTX for its own crypto trading activity. The court motion filed by FTX’s liquidator describes GGC as “one of the main feeder funds” to FTX and therefore “instrumental to its fraudulent business model.” To fund its loans, GGC borrowed from individuals and institutions that owned large quantities of crypto, who received a cut of the profits in return. But this arrangement, combined with its close ties to FTX, made GGC triply vulnerable to trouble at the exchange.

Binance was sued by the SEC. It looks like FTX but worse. -- The Securities and Exchange Commission has not pulled its punches against the volatile, scam-ridden cryptocurrency economy over the past two years, tackling everyone from big-name corporations and executives to celebrity investors while seeking to create new regulations in the free-for-all space. This has made the regulatory agency a keen enemy of Bitcoin purists, crypto truthers, and dudes really into pixelated art—and now it has made its biggest crackdown yet. On Monday, the SEC filed more than a dozen charges against the international crypto exchange Binance, its United States–based affiliate Binance.US, the parent company of Binance.US, and controversial Binance CEO Changpeng Zhao—accusing the mercurial entrepreneur and his enterprises of misleading investors, operating in the U.S. securities markets without being properly registered, and, on top of all that, engaging in securities fraud.[Update, June 6, 2023, at 5:32 p.m.: On Tuesday, the SEC also requested an emergency order to freeze any Binance.US assets across the world.]This development wasn’t unexpected. Binance has faced international lawsuits and probes many times before, and in March, thesupposedly more crypto-friendly Commodities and Futures Trading Commission filed a civil lawsuit against it for allegedly flouting market-manipulation and money-laundering laws. Still, the new SEC charges are a big, big deal. Not only because they portend a showdown in federal court against the world’s largest crypto exchange—but because of what they portend for the future of crypto regulation, and because they make a strong case that Binance wasn’t so different from the industry competitors it previousy condemned as crooks and scammers.You may recall that FTX and Alameda Research—the once-ascendant crypto firms launched by disgraced crypto mogul Sam Bankman-Fried—unraveled in November thanks in large part to Changpeng “CZ” Zhao and his public bearishness on those companies. Specifically, he’d cast public doubts on the legitimacy of FTX’s finances and backed out of a deal to purchase that crypto exchange after it took a market hit from other damning exposés. The rest was history.If the SEC’s complaint against Binance is sound, it may turn out CZ was doing a little projection, and that his own huge exchange was engaged in some of the same alleged criminality that earned SBF an ankle monitor and an upcoming federal trial of his own. Plus, considering that the FTX fallout helped plunge the crypto market into a recessionary hole it’s yet to climb out of, it’s more than certain these Binance charges will wrack the digital-asset economy even further. Already, in response to the news, various cryptocurrencies have plunged in value—not at all surprising, since many of them were traded on Binance itself. So, what does this all mean in the near term? Is Binance the new FTX? If so, is the crypto economy doomed? And is CZ the new SBF? Are there too many acronyms?? (Absolutely.) Here are the key charges from the SEC’s 136-page lawsuit, and what they mean for both crypto and the rest of the economy.

SEC sues Coinbase as pressure on crypto world rises -The Securities and Exchange Commission filed a lawsuit against cryptocurrency exchange Coinbase Global (COIN) as the regulator turns up its pressure on the crypto world.The SEC alleges Coinbase, the largest crypto exchange in the US, violated securities laws by acting as an exchange, a broker and a clearing agency without registering with the agency. It also offered and sold securities without registering its offers and sales, the SEC said.The US lawsuit filed in the Southern District of New York came a day after the SEC sued the world's largest crypto exchange, Binance, for violating securities laws, mishandling customer funds and misleading investors. Ten states, led by California, also sued Coinbase for allegedly violating state securities laws.Coinbase's chief legal officer Paul Grewal, appearing before a House Agriculture Committee Tuesday to discuss how the crypto industry could be regulated, said "it's disappointing but not surprising that the SEC has decided to bring legal action against Coinbase today."He and Coinbase CEO Brian Armstrong in separate statements confronted the SEC, arguing that the agency was being overly aggressive without establishing clear rules for their industry."The SEC has taken a regulation by enforcement approach that is harming America," Armstrong said on Twitter. "So if we need to avail ourselves of the courts to get clarity, so be it."Coinbase stock fell 12% Tuesday, but other cryptocurrency assets rebounded over the course of the day. Bitcoin rose to $26,700, for a 24-hour rise of 4.3%, and the total market capitalization for crypto assets was up 3%.

Biden's crypto cop taunts Republicans - House Republicans wanted the spotlight this week to sell a new plan to revamp the rules for crypto. SEC Chair Gary Gensler — President Joe Biden’s top financial market cop — is stomping on their rollout. The SEC on Monday and Tuesday announced major lawsuits against the world’s largest digital currency exchange, Binance, and the largest U.S.-based exchange, Coinbase, in an escalation of a crackdown on companies that Gensler says are flaunting investment rules and putting consumers at risk. The timing has huge political weight. Gensler is exerting his authority like never before over what he calls a “Wild West” market just as his opponents on Capitol Hill and in industry rally to box in his agency. Gensler brought the cases as House Republicans on Tuesday planned to hold a hearing — featuring Coinbase’s top lawyer — to bolster proposed legislation that would overhaul crypto rules by reining in the SEC and shifting greater responsibility to the much smaller Commodity Futures Trading Commission. “It is an interesting coincidence,” Rep. French Hill (R-Ark.), one of the authors of the new legislation, said in an interview after the Binance case was filed. The dueling moves by the crypto industry’s biggest Washington foe and its most powerful allies underscore the government’s extreme divide over how to police the market for digital tokens. The big question for the crypto world is how long it can continue to fend off Biden-era regulators through the courts until the political winds shift more in its favor. “We don’t need more digital currency,” Gensler said on CNBC on Tuesday, just before House Republicans started the hearing showcasing their crypto plan. “We already have digital currency. It’s called the U.S. dollar. It’s called the euro. It’s called the yen.”

SEC’s Gensler goes on the offensive after Binance and Coinbase lawsuits -Securities and Exchange Commission Chair Gary Gensler Thursday went on the offensive Thursday, saying the giant cryptocurrency exchanges targeted by the SEC had "fair notice" before being sued this week."When crypto asset market participants go on Twitter or TV and say they lacked 'fair notice' that their conduct could be illegal, don’t believe it," Gensler said in a speech at the Piper Sandler Global Exchange & Fintech Conference."They may have made a calculated economic decision to take the risk of enforcement as the cost of doing business."On Monday the SEC sued the world's largest crypto exchange, Binance, for violating securities laws, mishandling customer funds and misleading investors. On Tuesday it sued Coinbase Global (COIN), the largest US crypto exchange, alleging it also violated securities laws by acting as an exchange, a broker and a clearing agency without registering with the agency.Coinbase CEO Brian Armstrong pushed back publicly against the SEC, saying the regulator didn't respond to attempts to register with the SEC, work through concerns and get clarity about the rules.The company’s chief public policy officer, Faryar Shirzad, made the same argument to Yahoo Finance back in March.“There's no path to registering," he said during the March interview. "We've tried, and there's just no way to do it. And in fact, we've submitted a petition with the SEC [last] June where we enumerated the specific issues that the agency would have to resolve for crypto platforms to be able to come in and register.”The basis for the SEC’s complaints is that certain crypto assets Binance and Coinbase offered to customers were securities, and therefore under the SEC's jurisdiction.On Thursday Gensler said the SEC provided years of guidance to markets on what constitutes a crypto asset security, pointing to a 2017 report as well as the SEC staff’s “Framework for ‘Investment Contract’ Analysis of Digital Assets” in 2019. He also said crypto security issuers could file for an exemption from rules, noting that the agency has had rules for decades governing how issuers could do that.

SEC's crypto crackdown could bring regulatory certainty — eventually — A pair of Securities and Exchange Commission lawsuits against two of the biggest cryptocurrency exchanges this week is rattling already-beleaguered crypto markets, but some observers say the actions could ultimately give the industry a firmer regulatory footing in the long term.The SEC's suits against Binance Holdings Ltd. and Coinbase — two of the largest crypto exchanges in the U.S. — and accompanying state regulatory coordination represent a shot across the bow for the crypto industry. In the absence of legislation establishing a clear cryptocurrency rulebook, regulators, led by SEC Chair Gary Gensler, a long-time advocate for reeling in crypto markets, are bringing the titans of the industry to court.Experts say that while the ensuing battles will inflict pain on the companies in the short term, the resulting legal precedents could provide clarity, and ultimately facilitate sustainable growth for the cryptocurrency industry.Ian Katz, managing director at Capital Alpha Partners, LLC, said while the two suits level different allegations, both suits are underpinned by a belief Gary Gensler has long portended: Certain crypto exchanges are violating the law by offering unregistered securities."It's a big blow to the industry to have two of the biggest players sued by their regulator on consecutive days," he said. "It does look like the Coinbase suit is focused on being unregistered, and in the Binance suit the SEC is throwing everything in but the kitchen sink. The Coinbase case looks narrower. One problem for the industry is that the public may not make that distinction." Katz said the legal actions came as no surprise, especially given CFTC's March suit against Binance, but that this case seems especially intent on punishing the two large exchanges. "The wide-ranging nature of the SEC complaint threatens the exchange's ability to operate as a major exchange with U.S.-based customers, and is another black eye for an industry trying to get past the FTX debacle," he noted.

Ripple CEO To SEC: Suing Exchanges Won’t Save You From “FTX Debacle” -- Ripple CEO Brad Garlinghouse has declared that SEC’s recent actions wouldn’t distract the industry from its failure in what he called the “FTX debacle.” Garlinghouse also stated that Gensler’s actions now differ from his “pro-innovation stance”.The recent regulatory clampdown on Binance and Coinbase has evoked a lot of issues in the crypto industry. After the SEC announced the lawsuit against Binance, the exchange saw net outflows amounting to $778 million in 24 hours. Also, on-chain analyst CryptoQuant revealed that withdrawals on Binance spiked following the announcement. While the industry still reels from the US SEC’s actions against the two top crypto firms, its Chair, Gary Gensler, declared that the country doesn’t need more crypto assets. While speaking during CNBC’s “Squawk on the Street” on June 6, the US SEC Chair Gensler said, “Look, we don’t need more digital currency,” “We already have digital currency. It’s called the U.S. dollar. It’s called the euro, or it’s called the yen; they’re all digital right now. We already have digital investments.” After the speech, the Ripple CEO took to Twitter to say that Gensler’s self-acclaimed support for innovation is laughable, given that his actions point to the opposite.Recall that, while speaking before the Senate Banking Committeehearing in 2021 to consider him for SEC Chair nomination, Gensler said; “I’m neither a maximalist nor a minimalist, but I do believe [blockchain is] a catalyst for change.”But according to Coindesk, while Gensler’s background suggests he is pro-regulation and pro-crypto, the hearing didn’t have enough clues to pinpoint his full stance. Moreover, Gensler carefully balanced his speech between “emphasizing regulating suspicious behavior and encouraging new innovations.” But due to the latest SEC actions, Ripple CEO says Gary Gensler is acting the opposite of what he proclaimed to be.

Coinbase crackdown widens as U.S. states push to halt staking product -- State regulators from California to New Jersey demanded that Coinbase Global halt its staking service, posing fresh and local threats to the biggest U.S. crypto exchange. The moves by watchdogs across the country coincide with the Securities and Exchange Commission suing Coinbase on Tuesday for a range of alleged violations. Both federal and state officials drilled in on Coinbase's staking program, which offers customers a return for letting their tokens be used to facilitate blockchain transactions. Over the past year, crypto staking products, which can be highly lucrative for platforms, have become a flashpoint in fights over how to regulate cryptocurrencies. Although it's not uncommon for state regulators to coordinate, Tuesday's action stands out because of Coinbase's heft in the market. "The cryptocurrency securities market is not a free-for-all where companies can make up their own rules," Shirley Emehelu, New Jersey's Executive Assistant Attorney General, said in a statement. Multiple state regulators emphasized that their moves did not prohibit Coinbase from offering staking securities, so long as it complies with state law. "Our message to Coinbase is: Come on in and tell us why you should keep operating" the staking products, Amanda Senn, Alabama's securities regulator, said in an interview. Alabama issued the crypto exchange a show cause order, giving Coinbase 28 days to show why its staking products should not be banned in the state. California, where authorities say residents hold more than 600,000 Coinbase accounts that use staking, Maryland, and Wisconsin demanded the firm stop the service immediately and come into compliance with state laws. Kentucky, New Jersey and South Carolina also issued cease-and-desist letters to the crypto trading platform. Others, including Alabama, Illinois and Washington, initiated legal action that didn't immediately ban the service, giving Coinbase a chance to reply if they wanted to keep offering the product.

SEC’s Gensler claims ‘parallels’ between Binance and FTX, yet one wasn’t sued -The United States securities chair has hinted at “parallels” between crypto exchange Binance and collapsed exchange FTX — namely their alleged use of sister firms to move funds. Speaking to Bloomberg on June 6, U.S. Securities and Exchange Commission Chair Gary Gensler pointed to FTX’s alleged fraud and manipulation regarding its sister firm Alameda Research, including the alleged role that its founder Sam Bankman-Fried played in it. SEC’s Gary Gensler speaking with Bloomberg’s David Westin. Source: Bloomberg “There's a business model that bundles and commingles functions that we don't see, nor would we allow elsewhere, in finance,” he said. On June 5, the SEC filed a complaint against Binance pressing a total of 13 charges. One of the allegations in the suit claims that funds from Binance and Binance.US were commingled into an account controlled by the Changpeng Zhao-associated Merit Peak Limited. Another allegation claims that Binance.US engaged in wash trading through its “primary undisclosed ‘market making’ trading firm Sigma Chain,” which is owned by Zhao. “Platform after platform, entrepreneurs [...] are trying to build wealth for themselves and their investors through sister organizations — hedge funds — trading against the customers,” said Gensler. So where’s the FTX lawsuit? The recent interview is likely to add more fuel to the ongoing debate on Twitter — why hasn’t the SEC sued FTX?

SEC’s crypto actions surged 183% in 6 months after FTX collapse Cryptocurrency-related enforcement actions undertaken by the United States securities regulator significantly increased in the six months following the bankruptcy of cryptocurrency exchange FTX.An analysis of press releases from the U.S. Securities and Exchange Commission (SEC), and news reports on its actions, found that in the six months preceding FTX’s collapse, the SEC undertook approximately six enforcement actions.In the six months after FTX’s bankruptcy on Nov. 11, 2022, SEC crypto-related enforcement actions jumped to at least 17, an estimated increase of 183% from the preceding period.The analysis doesn’t account for the two recent lawsuits the SECbrought against Binance on June 5 and Coinbase a day later.The increased actions, including the recent ones taken against the two exchanges, led to some observers suggesting the SEC is attempting to redeem itself for failing to police FTX.MarketWatch reported that U.S. Representative French Hill said the recent crackdown was a “cover your ass” move from the regulator and SEC chair Gary Gensler, while speaking at an event in Washington, D.C. on June 7.Hill claimed that instead of Gensler “overseeing FTX,” the SEC head was instead “out bashing Kim Kardashian because she’s promoted crypto on some Super Bowl ad,” adding:“[Gensler] opened up this year, in 2023, with all these enforcement actions; I think it looks like [cover your ass] to me.”Markus Thielen, the head of research and strategy at Matrixport, and author of the book Crypto Titans: How trillions were made and billions lost in the cryptocurrency markets, previously told Cointelegraph he believes there’s an air of “embarrassment” for those who didn’t catch the issues at FTX.Ripple CEO Brad Garlinghouse echoed the sentiment, claiming in a June 6 tweet that the SEC is “throwing lawsuits at the wall and hoping they distract from the agency’s FTX debacle.”

Crypto scams five times as costly as other cybercrimes says study - Cryptocurrency-centered scams are especially harmful compared to other Internet crimes, with victims losing about five times more money. This is one of the findings of a recent study from cybersecurity company SurfShark. Using open-source information from the Federal Bureau of Investigation, Surfshark found that victims of non-crypto related internet crimes lost an average of $16,000 — certainly nothing to sneeze at, but still materially smaller than the average $86,000 victims lost to cryptocurrency-related scams. "This disparity may be due to the irreversible nature of crypto transactions," said Surfshark. Bolstering this finding was another data point: While only 6% of U.S. internet crime victims paid scammers in cryptocurrency, the substantial financial impact of these scams meant they represented 24% of all cybercrime-related financial losses last year. In 2022, over $2.3 billion worth of crypto was lost to internet crimes in the U.S. Broken down by geography, the study found that South Dakota victims experienced the most severe impact, suffering average losses of $998,000 per victim, over 10 times higher than the national average. Following closely behind are New Hampshire with $147,000 per victim, Georgia with $138,000 per victim, Delaware with $121,000 per victim, and California with $117,000 per victim. The least affected states were Mississippi ($14,884 per victim), Alaska ($20,305 per victim) and Arkansas ($27,670). "Criminals prefer cryptocurrencies not only because of their relative anonymity," explained Aleksandr Valentij, chief information security officer at Surfshark, "If the victim realizes they've been scammed, crypto transfers cannot be reversed like bank transfers, and the money is lost forever, especially if it goes through a cryptocurrency tumbler or is "washed" in any other way. This is particularly convenient for scammers, and combined with the inflated interest in crypto we have at the moment, it creates a perfect environment for crypto scams."

Stablecoin bill moves closer to bipartisan agreement in House — The House Financial Services Committee has posted another draft of a stablecoin bill, this time including several Democrat-led priorities, in a powerful signal that negotiations between the two parties could lead to some actionable legislation out of the House this year. House Republicans released the draft just before a June 13 hearing on digital asset legislation, which will feature Jeremy Allaire, CEO of stablecoin issuer Circle. Unlike a previous version of the bill McHenry released in April, the new version merged in some important Democratic priorities. Specifically, the new bill would have the Federal Reserve write requirements for issuing stablecoins, although it would still allow state regulators to have oversight over the tokens' issuers. A sticking point for Democratic lawmakers in the previous bill was the preeminence it gave state regulators over the Fed. The most recent draft would give the Fed power to intervene in emergency situations over state regulators, and the ability for states to give their authority to the central bank. The most recent draft also eliminated a section requiring the Fed to study the merits of central bank digital currency, an increasingly controversial topic for the more conservative factions of the Republican party. The newly published draft of stablecoin legislation is a sure sign that negotiations are continuing to move forward on the topic in the House. While Republicans could pass a stablecoin bill alone in the chamber, they will need the buy-in of Democrats in the Senate to get anything passed into law. The progress comes as stablecoin and digital asset policy has heated up in Washington. The Securities and Exchange Commission has cracked down on Binance Holdings Ltd and Coinbase, two of the world's largest crypto exchanges, and crypto companies are rethinking their banking relationships after the unwinding of Signature and Silvergate banks as part of the banking crisis in March.

BankThink - Introducing a CBDC would be a catastrophe for the banking system | American Banker -Since the fall of Silicon Valley Bank, many have expressed concern over the risk of deposits leaving community banks for larger institutions. But the risk would be present for all banks, regardless of size, if the Federal Reserve introduced a central bank digital currency, or CBDC.Bankers should make no mistake: If a CBDC is introduced in the United States, operations are likely to be anything but business as usual.The "issuance of a CBDC," said Rob Morgan, former vice president of emerging technologies at the American Bankers Association, "would fundamentally rewire our banking and financial system by changing the relationship between citizens and the Federal Reserve." At its core, a CBDC would create a direct connection between citizens and the Federal Reserve — as well as the federal government at large. This rewiring of the system opens up risks to financial privacy, freedom, markets and even cybersecurity.Perhaps in an attempt to appease financial institutions and lessen the impact of such a radical proposal, the Federal Reserve has signaled its preference for an "intermediated CBDC," or a scheme where the central bank enlists the private sector to maintain CBDC accounts and digital wallets. At first glance, this idea might sound like the private sector is being cut in on the action, but those working in financial services should not be fooled by the bone being thrown here.As Greg Baer, president and CEO of the Bank Policy Institute, cautioned at an event held at the Cato Institute, an intermediated CBDC would mean anything but business as usual for financial institutions. While CBDCs come in a few different forms, it is important to recognize that they are direct liabilities of the central bank.For financial institutions, this distinction means that "if a consumer or business chose to hold a dollar of CBDC, that dollar is no longer available for bank funding." In other words, financial institutions will still incur costs due to expenses like anti-money laundering (AML) and "know your customer" (KYC) compliance, as well as cybersecurity maintenance, but there will be no source of loan revenue to balance those costs.

Wall Street Banks Are Using AI to Rewire the World of Finance --Deutsche Bank AG is using artificial intelligence to scan wealthy client portfolios. ING Group NV is screening for potential defaulters. Morgan Stanley says its bankers are “experimenting” in a “safe and contained environment.” Meanwhile, JPMorgan Chase & Co. is hoovering up talent, advertising for more AI roles than any of its rivals. The AI revolution is unfolding on Wall Street as wider interest grows in the evolving technology and its likely impact on business. At the most enthusiastic banks, about 40% of all open job roles are for AI-related hires such as data engineers and quants, as well as ethics and governance roles, according to new data from consultancy Evident.

Banks are using a cybersecurity tactic to crack down on check fraud --After a significant spike in check fraud in 2022, banks are grasping for ways to mitigate their risk. Solutions like positive pay help reduce the threat for business checks. On the consumer side, banks have opportunities to use threat intelligence and fake check detection.In 2022, depository institutions sent 501,000 suspicious activity reports elated to mail fraud to the Financial Crimes Enforcement Network, which is just over double the number of reports made in 2021. Depository institutions generated 192,000 such reports in the first four months of this year, which is 11% higher than the same period last year.This trend has lasted over the long term. Since 2014, reports of check fraud have increased fivefold. During the same period, consumers sent fewer checks, but they have become more valuable and more of a target for fraudsters.According to data released in April by the Federal Reserve, consumers moved $27 trillion via checks in both 2012 and 2021. That figure fluctuated only slightly, up to $29 trillion, in the intervening years. At the same time, consumers sent 43% fewer checks in 2021 than they did in 2012.Small financial institutions have complained that larger rivals tend to push costs of check fraud onto them by drawing out the process of getting repaid for bad checks. Indeed, check fraud tends to yield losses for banks rather than consumers because of consumer protections established by Regulation CC. But fake checks do also hurt consumers at times.The Community Bankers Association of Illinois is calling on regulators to issue guidance that would make large financial institutions toughen customer verification and be more cooperative in resolving disputes over falsified checks.The American Bankers Association warns consumers against fake check schemes in which a fraudster sends a consumer a check then asks for the money back. This can happen when a fraudster overpays for an item sold online then asks for a refund, or they tell the victim that they won a prize but need to send back taxes and fees.In both cases, the consumer unwittingly deposits a bad check into their own account, and even if it clears, the bank usually reverses the deposit once it discovers the check was fraudulent. That leaves the consumer trying to recover any money they sent to the fraudster.

Disgraced Silvergate Bank Hints It May Not Be Able to Cover All of Its Deposits; Fed Slaps It with a Cease and Desist Consent Order - By Pam Martens and Russ Martens - Last week, on Tuesday, May 23, the Federal Reserve and California Department of Financial Protection and Innovation (the state banking regulator) hit the collapsed federally-insured bank, Silvergate Bank, and its parent, Silvergate Capital Corporation, with an enforcement action called a “Cease and Desist Consent Order.” The action was not announced to the public until yesterday.The individual signing the Consent Order on behalf of the bank was its controversial CEO, Alan Lane, who had allowed his federally-insured bank to get in bed with Sam Bankman-Fried’s house of frauds, including the FTX crypto exchange and Bankman-Fried’s hedge fund, Alameda Research. Lane also had allowed his deposit base to become heavily involved with other crypto-related companies. When details of the Bankman-Fried relationship with Silvergate Bank came out in the news, a run on deposits commenced. On January 5, Silvergate reported in a filing with the Securities and Exchange Commission (SEC) that its “total deposits from digital asset customers declined to $3.8 billion” as of December 31, 2022 (down from the previously reported $11.9 billion on September 30, 2022.) That’s a 68 percent drop in deposits in one quarter.[…] Last week, on May 22, Silvergate made another filing with the SEC, indicating that it has fired its independent public accounting firm, Crowe LLP, and won’t be filing any annual report for the year ended December 31, 2022 – ever. (Seriously, is this any way to garner public confidence in the U.S. banking system?)But the most troubling SEC filing by Silvergate arrived on May 11, which likely freaked out the Fed and the Federal Deposit Insurance Corporation (FDIC) that insures deposits in U.S. banks. The filing included this statement, raising doubts about Silvergate Bank’s ability to make its depositors whole:“As of May 9, 2023, the Company had cash and cash equivalents in excess of the amounts required to fully repay all remaining deposit liabilities of the Bank. However, the Company has potential contingent liabilities related to, among other things, the regulatory and other inquiries and investigations that are pending with respect to the Company and the Bank, the various litigation with respect to the Company (including private litigation) and other expenses to be incurred in connection with operating the Bank through the Bank Liquidation (including expenses necessary for the operation of the Company and/or the Bank, employee benefits and compensation and fees and expenses of professionals retained by the Company in connection with the Bank Liquidation) and is unable to quantify such amounts at this time.”You are likely thinking, who (in their right mind) would still be maintaining deposits in this bank. It turns out that Silvergate was involved with brokered CDs and there may be folks out there who bought a federally-insured Certificate of Deposit from their brokerage firm and haven’t yet figured out that their CD is with this deeply-troubled, liquidating bank.

The Three Large Banks that Blew Up This Year Were Not Even on the FDIC’s Problem Bank List - By Pam Martens and Russ Martens - - The second, third, and fourth largest bank failures in U.S. history occurred this year. And yet, none of the banks that blew up were on the “Problem Bank List” that is prepared quarterly by the federal bank regulator that is supposed to be on top of these things – the Federal Deposit Insurance Corporation (FDIC).When the FDIC released its quarterly Problem Bank List for the quarter ending December 31, 2022, it showed just 39 banks were a problem with combined assets of a meager $47.5 billion.Given that rosy picture, one can understand the shock to the American people when Silicon Valley Bank blew up on March 10 with $212 billion in assets and had to be put into FDIC receivership. Two days later, on March 12, Signature Bank failed and was put into FDIC receivership. As of December 31, 2022, Signature Bank had $110.4 billion in assets.Then on May 1, First Republic Bank failed and was put into FDIC receivership with some assets and deposits being sold to JPMorgan Chase bank. According to the FDIC, as of April 23, 2023, First Republic Bank had $229.1 billion in total assets.Together, those three banks had $551.5 billion in assets – more than half a trillion dollars – versus the FDIC’s estimate just a few months earlier that less than $47.5billion in bank assets were housed at “Problem Banks.”Putting out charts and projections that so spectacularly miss the mark does not instill confidence in Americans as to the safety and soundness of the U.S. banking system.Given the seismic flop of the FDIC’s chart for December 31, 2022 (see chart above), one would have expected a more careful and thoughtful analysis when the FDIC released its Problem Bank List for the quarter ending March 31, 2023. Instead, the FDIC added just four banks to the Problem Bank List, bringing the number to 43, with combined assets of a still meager $58 billion.That $58 billion stands in sharp contrast to the $1 trillion in assets at one of the four largest mega banks in the U.S. that a team of four highly-credentialed academics have raised alarms about.The key takeaway from their study is this: “The U.S. banking system’s market value of assets is $2.2 trillion lower than suggested by their book value of assets accounting for loan portfolios held to maturity.” (For more on this Held-to-Maturity accounting issue, see our report: JPMorgan Chase Transferred $347 Billion in Debt Securities Over the Last 3 Years to Inflate Its Capital Using a Controversial Maneuver.)

FDIC, Fed, OCC finalize guidance for banks' third-party partnerships -Three federal bank regulators finalized risk management guidance for banks to consider when developing relationships with fintechs and other third parties.The 68-page, interagency report details how banks should evaluate risks when assessing, negotiating with and monitoring third-party relationships. The Federal Reserve, Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency finalized the guidance Tuesday, nearly two years following the initial draft's publication.Banks must implement risk management practices that account for the risks of third party providers, such as consultants, merchant payment processors, cloud computing providers and data aggregators, regulators wrote in the guidance. This means executing appropriate due diligence, creating clear expectations for performance and responsibilities and outlining plans in the case of terminating the agreement."As part of sound risk management, it is the responsibility of each banking organization to analyze the risks associated with each third-party relationship and to calibrate its risk management processes, commensurate with the banking organization's size, complexity, and risk profile and with the nature of its third-party relationships," the guidance said.The publication was signed by acting OCC Chair Michael Hsu and approved by five of the six Fed governors. The latest draft also supersedes all previous guidance on the topic from the three federal regulators, each of which have independently issued outlines on the topic over the last 15 years. The guidance took into account 82 submitted comments from interested parties, like trade associations, banks and fintechs.

JPMorgan Chase Transferred $347 Billion in Debt Securities Over the Last 3 Years to Inflate Its Capital Using a Controversial Manuever -- By Pam Martens and Russ Martens - Wall Street mega banks, as well as others, are moving vast amounts of their debt securities from one accounting category to another accounting category in order to stretch out unrealized losses over the life of the instrument. As the FDIC chart above indicates, as of December 31, 2022 unrealized losses on investment securities at U.S. banks stood at more than $600 billion.According to JPMorgan Chase’s 10-K (Annual Report) filings with the Securities and Exchange Commission, over the past three years it has moved a total of $347 billion (yes, “billion” with a “b”) of investment securities from the accounting category called “Available-for-Sale” (AFS) to the accounting category called “Held-to-Maturity” (HTM).JPMorgan Chase’s 2022 10-K advises as follows: “During 2022 and 2021, the Firm transferred $78.3 billion and $104.5 billion of investment securities, respectively, from AFS to HTM for capital management purposes.”JPMorgan Chase’s 2020 10-K adds this: “During 2020, the Firm transferred $164.2 billion of investment securities from AFS to HTM for capital management purposes.”Add up the three years of transfers and you’re looking at a cool $347 billion that went from one accounting category to another. The reason? JPMorgan refers to its motivation as “capital management.” But let’s take a deeper dive.The Kansas City Fed explains the difference between AFS and HTM accounting treatment as follows:“Investment securities are designated on the balance sheet as either ‘held to maturity’ (HTM) or ‘available for sale’ (AFS). As the name suggests, HTM securities are those the bank does not intend to sell but instead expects to hold until they fully mature. AFS securities, on the other hand, are securities that the bank intends to hold for some time but may sell before maturity. HTM securities are reported at amortized cost on the balance sheet, and changes in their market value do not affect total assets or book equity. Instead, the reported value of HTM securities changes as their underlying discount or premium amortizes over time. AFS securities, on the other hand, are reported at market value. Changes in the market value of AFS securities—that is unrealized gains or losses—are reported in book equity as part of the accumulated other comprehensive income (AOCI) account. Therefore, as the market value of AFS securities rises (falls), assets and book equity also rise (fall).”The Federal Home Loan Bank of Chicago explains the motivation to be shuffling investment securities from AFS to HTM as follows:“The final option to explore to curb investment portfolio losses, especially in anticipation of yet higher interest rates in the near term, is to transfer AFS securities into the HTM category. In accordance with ASC 320-10-35-10B, an institution is permitted to reclassify and transfer a security to the HTM category at its amortized cost basis, if the entity has positive intent and ability to hold these securities until maturity. Any unrealized loss may be amortized over the remaining life of the security as an adjustment of yield in a manner consistent with the amortization of any purchased premium or discount.” \

U.S. banks face capital jump with more lenders roped in to comply --Large U.S. banks may have to boost their capital by an average 20% and a broader swath of lenders would face strict requirements for setting aside money under a draft plan from U.S. regulators to bolster the financial system. Specific increases will depend on a lender's business model, and banks with at least $100 billion in assets may have to adhere to the new requirements, according to people familiar with the proposals. That's far lower than the existing $250 billion threshold where many of the toughest rules kick in, which means dozens of regional U.S. banks might have to meet the new standard. The actual bump in capital requirements, which may be proposed this month, will vary based on the range of banks that will be affected by the changes to key capital rules, said the people, who asked not to be identified before the plans were made public. The long-awaited changes are part of an international overhaul of capital rules that started more than a decade ago in response to the financial crisis of 2008. The issue became more stark this year with the collapse of several banks in the U.S. The havoc they caused reignited debate on whether the largest regional banks should face tougher standards, while the biggest U.S. lenders argue that capital rules that go too far will hinder economic growth.

Midsize banks face new funding risks after debt deal The end of the battle over the U.S. debt ceiling has brought calm to the financial sector, but some banks may not be out of the woods just yet. Large regional banks, some of which are still reeling from a crisis of depositor confidence this spring, could be stressed further by having to once again compete with the federal governmentfor funding. As the Treasury Department tries to refill its coffers after emptying them during the protracted debt fight, it'll issue short-term government debt that might be a more attractive option for investors than potentially unsteady bank deposits. Just ahead of Treasury's "x-date," the point at which the government would run out of money to pay its bills, Congress passed a spending agreement, which President Joe Biden quickly signed. A default would have been catastrophic, but the 11th hour reprieve will still have consequences for the financial system. During the recent banking crisis, banks have had a major advantage: They haven't had to compete in a meaningful way with essentially riskless government bonds. As deposits fled from large regionals in the early days of the turmoil, they mostly fled to banks considered "too big to fail." "Not only are they competing with the most attractive asset in the world, but with an increased supply of that asset," said John Rizzo, a senior vice president at the Clyde Group and a former Treasury official. "So that's going to be a challenge if you're a midsized institution and you had any type of deposit flight over the last six months. Part of that risk you experienced was ameliorated by the normal amount of Treasuries or securities in the market kicking around." Now that the Treasury can issue new debt, that competition is about to heat up, and the money could leave the banking system entirely.

Banking Democrats raise concerns over procedure in Republican bill frenzy — House Republicans questioned two financial experts in Congress on Treasury debt markets at a subcommittee hearing, while considering a slate of bills that Republicans say would increase transparency among the country's financial regulators. According to a committee rule, bills up for markup by the House Financial Services Committee must be debated in a hearing. In this case, the subcommittee on financial institutions and monetary policy listed six pieces of legislation, ranging from a bill that would allow banks to pay certain assessments to the Deposit Insurance Fund with Treasuries and one that would bring the non-monetary policy-related functions of the Federal Reserve Board of Governors into the appropriations process. "It makes a mockery of that rule if we list bills as getting a hearing here today, and those bills have virtually nothing to do with today's hearing," said Rep. Brad Sherman, D-Calif. "I would hope that we would not view those bills as having had their required hearing when we have witnesses here who are focused on the federal fiscal situation." Democrats decried these pieces of legislation and argued that the two witnesses at the hearing — Grant Driessen, a specialist in public finance at the Congressional Research Services, and Jeff Arkin, director of strategic issues at the Government Accountability Office — didn't have any expertise in the issues that the legislation addresses. "This hearing is ostensibly about concerns about the opacity of the Treasury," said Rep. Tom Casten, D-Ill. "In the interest of transparency let the record show that three of the bills noticed in this meeting have absolutely nothing to do with what the witnesses were brought here to testify on. If we care about transparency, if we care about a fulsome debate, let us insist on the same transparency in this body that we seem to be concerned about [with] the Treasury."

M&A stagnates, but regulatory resistance may ease - Bank merger-and-acquisition activity slowed to a crawl this year, hampered by spiking interest rates, weaker stock valuations and high regulatory hurdles. But the latter impediment may soften in the aftermath of recent regional bank failures, bankers and deal advisors said. This year, only 28 deals were announced through April, according to S&P Global Market Intelligence. That was half the volume during the same period a year earlier. In the same span, the latest S&P data showed the aggregate disclosed deal value plunged to $535.5 million this year from $2 billion in 2022. And 2022 was a relatively slow year: There were just 168 U.S. bank M&A deals announced last year, down from 205 in 2021. Jacob Thompson, managing director of investment banking at Samco Capital Markets, said in an interview that the Federal Reserve's year-long rate-hike campaign to curb inflation raised the specter of a recession, creating uncertainty that pushed some buyers to the sidelines. The macroeconomic backdrop also put downward pressure on banks' stocks and hindered the ability for buyers to use their shares to pay for acquisitions. These impediments remain intact and likely will prevent a jump in M&A anytime soon. But Thompson said regulatory headwinds that emerged after the Biden administration called for greater scrutiny of M&A in 2021 may ease, opening a path for more deals later this year or next. Regulatory delays factored into multiple canceled deals over the past year, including theplanned merger of TD Bank Group and First Horizon and the combination of MVB Financial and Integrated Financial Holdings. "I do think we are starting to see the beginnings of a more accommodative regulatory process," Thompson said.

BankThink - Regulators were right not to greenlight the TD-First Horizon merger | American Banker --Last month, TD Bank and First Horizon abandoned their $13.3 billion merger after failing to receive regulatory approval for the deal. In response, Keith Noreika, a former top Trump administration bank regulator, and Bryan Hubbard, his former OCC public affairs officer, took to the pages of this publication calling the banks' termination of their deal the result of a "broken" merger review process and saying it "needs a reboot." The truth is, Noreika — whose former law firm has been advising TD on its First Horizon acquisition — and Hubbard are right. Our bank merger process is broken, but it's not for the reasons they think.Despite their claim that our bank merger review process is broken and overly restrictive, in recent decades bank regulators have almost entirely failed to enforce our bank antitrust laws. Instead, they have overseen the drastic consolidation of their industry. The Federal Reserve, OCC and FDIC have not denied a bank merger in twenty years, despite mounting evidence that rampant bank consolidation has led to a range of competitive, consumer and economic harms. The U.S. has lost ten thousand of the banks it once had forty years ago — a 70% drop — and today the six largest bank holding companies control more assets than all others combined.Bank consolidation is a policy choice, not a natural outcome. Noreika knows this particularly well — as acting head of the OCC, Noreika championed the Trump administration's financial deregulation agenda, which sparked a wave of bank mergers and is now under fire for its role in enabling today's crisis. As this publication has noted, eight of the ten biggest bank mergers of the past decade were announced since 2019, just a year after the passage of the Trump Dodd-Frank rollbacks.The TD Bank merger was also particularly dangerous. TD's own track record offered regulators an abundance of reasons to block a deal that would make the bank even bigger and more powerful. In 2020, for example, the Consumer Financial Protection Bureau ordered TD to pay $122 million in fines and restitution to 1.5 million Americans for deceptively charging consumers overdraft fees on ATM and debit card transactions. In 2021, TD settled a lawsuitalleging the bank knowingly charged multiple nonsufficient fund fees on the same transaction, and also agreed to a $12 million settlement in a lawsuit alleging it overcharged customers on ATM fees. Already this year, TD paid out a whopping $1.2 billion to settle a lawsuit alleging it knowingly aided the Stanford Financial Ponzi scheme while raking in billions of investors' money.

BankThink: Climate stress testing isn't crazy. Not stress testing for climate risks is. | American Banker --Hazardous waste cleanups are stupendously expensive, as are wastewater treatment plants,rainwater detention tunnels, air emissions scrubbers and all the other man-made things we require companies to build to undo their man-made damage to the environment. Every dollar that a company doesn't have to spend on those projects is a dollar they can use to do something profitable, so naturally wherever regulators draw a line in the sand has a big impact on a company's profitability — or even its survival. So it is little surprise that this dynamic — which is a tale as old as time — has spilled into the policy debate about how to address climate change generally, and into the Fed's nascent effortsto have banks account for and mitigate the risks that climate change poses to their balance sheets specifically.The arguments against having the Fed get involved fall into a few categories: It goes beyondwhat the central bank ought to be doing; it's already covered in operational risk controls and the cause-and-effect relationship between climate stress and balance sheet losses is not yet well-established.I'm going to focus my attention on the latter point, because to me it seems to be the best argument against having the Fed or any other regulator get involved in addressing climate change via loan loss provisions and capital requirements. Stress testing works like this: If, say, unemployment reaches X level and, say, GDP falls to X level, then banks can expect Y losses to their balance sheets. Making sure that Y loss result is still above the minimum necessary to keep the lights on is the name of the game, and a century or more of economic data backs up some of the test's reasonable assumptions about how X results in Y. Climate change, by contrast, lacks the robust data set necessary to draw similarly firm connections between X climate change events and Y balance sheet results.But some recent developments illustrate — at least to my satisfaction — that these risks are there whether we can anticipate them reliably or not. Arizona has recently issued a moratoriumon new construction in the Phoenix area that requires well water, a move meant to reduce demand for an ever-dwindling critical resource in the Colorado River basin. What is more, private insurers like State Farm and Allstate have recently announced that they are no longer offering homeowners insurance in California because of increased loss risks due to climate change. Nine states are suing the Department of Homeland Security over rate hikes for national flood insurance premiums — hikes that are likely inevitable.You'll notice that these developments all have one thing in common: They affect people's ability to buy, rent or build homes. And you'll also notice that they are coming at a time when there is a pronounced lack of housing nationwide and an even more pronounced lack of affordable housing. If climate change is making it harder to build and insure homes in risky places, those homes are going to have to be built some other way or built somewhere else because peoplestill need shelter they can afford.The Fed is not the lynchpin of averting a climate catastrophe — the world will not be saved with higher capital requirements or loan loss reserves alone. It is also true that if climate stress testing ever grows teeth, the connections between climate change and credit losses will need to be firm — or at least defensible. But the writing is also on the wall, and the time is now to strengthen the connections between a changing climate and economic growth. People can and will adapt, but that adaptation is going to cost money. The question is do you pay now, or pay more later.

House Republicans echo bank complaints on Fincen rule — Republicans on the House Financial Services Committee criticized the Financial Crimes Enforcement Network for what they said was a lack of clarity in its beneficial ownership reporting rule. Chair of the House Financial Services Committee Rep. Patrick McHenry, R-N.C., Chair of the House Committee on Small Business Rep. Roger Williams, R-Texas, and Rep. Blaine Luetkemeyer, R-Mo., raised concerns that there has not been enough information disseminated to small businesses, who will need to comply with the rule when it goes into effect at the beginning of 2024. "It is concerning that with six months until its effective date, Fincen has yet to lay out a clear plan for engagement," the lawmakers wrote in a letter. "It is highly unlikely that the 32 million small business owners know what Fincen is let alone know to look for a press release on Fincen's website. As a result, there is a real possibility that these small businesses could be held civilly or criminally liable for noncompliance." The rule is meant to make it possible for Fincen to compile beneficial ownership information of certain U.S. and foreign reporting companies in a Beneficial Ownership Secure System, or BOSS. However, a group of state attorneys general, Republicans and anti-corruption advocates have said that the rule is overly complex, and will be difficult for companies, including banks and small businesses, to follow. Republicans' most recent complaints are similar to those lobbed by the banking industry earlier this year. "As currently conceived, the Registry will be of limited, if any, value to banks," the American Bankers Association wrote in a press release in February. "The proposal creates a framework in which banks' access to the Registry will be so limited that it will effectively be useless, resulting in a dual reporting regime for both banks and small businesses."

Durbin revives credit card swipe-fee bill with added support -- Merchants are getting another shot at changing the rules around the "swipe fees" they pay to banks when they accept Visa and Mastercard credit cards. A group of bipartisan lawmakers led by Sen. Dick Durbin, D-Ill., on Wednesday reintroduced a bill that aims to lower credit-card interchange rates by requiring cards from banks with $100 billion or more of assets to offer merchants a choice of two unaffiliated card networks such as Mastercard or Visa plus another option like NYCE, Star or Shazam. The Credit Card Competition Act, initially introduced in July 2022, did not advance to a vote. This time around, new supporters have joined the cause, including co-sponsors Sen. J.D. Vance, R-Ohio, a junior member of the Senate Banking Committee; Sen. Peter Welch, D-Vermont, and Sen. Roger Marshall, R-Kansas. A House version of the bill is in the works, backed by Reps. Lance Gooden, R-Texas, Thomas Tiffany, R-Wis., Jefferson Van Drew, R-N.J., and Zoe Lofgren, D-Calif. Merchant lobbying groups cheered the move, claiming the legislation would end an unfair monopoly Visa and Mastercard enjoy in setting interchange rates. Merchants pay more than 2% of each transaction in fees, amounting to more than $11 billion a year that merchants and consumers absorb, the Merchants Payments Coalition, a Washington, D.C.-based nonprofit representing a broad swath of online and in-store merchants, said in a Wednesday press release. It's difficult to predict the timing for the second effort to pass the bill. Lawmakers could potentially attach it to other legislation under consideration this summer, and it could also take months to get to a vote. Although Durbin lacked the votes to pass the bill last time, support from newcomers, including Sen. Vance, could signal a turning point.

CFPB enforcement actions plummet under Chopra -- The Consumer Financial Protection Bureau's enforcement actions have plummeted under the leadership of director Rohit Chopra, while employee morale at the agency is lagging compared with the Obama administration. Chopra appears to be pursuing a far different strategy compared with his Democratic predecessor Richard Cordray, the CFPB's first director. The consumer watchdog has filed just five enforcement actions so far this year compared with 20 last year, which marked the second-lowest number on record; just 10 enforcement actions were brought in 2018 during the Trump administration. By comparison, Cordray filed 27 enforcement actions in 2013, 32 in 2014 and 57 in 2015, a record high. The drop in enforcement actions is attributable to the lack of major financial crises that the CFPB could leverage into settlements. Remote work during the pandemic may have limited the bureau's oversight as well. Yet the numbers do not compare favorably even to former CFPB Director Kathy Kraninger, a Trump appointee, who took a more collaborative approach to policing financial firms and sought to refocus the bureau on education. Kraninger filed 48 enforcement actions in 2020, more than twice the number that Chopra brought during each of his first two years helming the agency. "That the CFPB is not even at the level of Kraninger seems eye-opening at first blush," said Ed Groshans, senior policy and research analyst at Compass Point Research & Trading. Chopra has focused primarily on getting banks and financial institutions to adjust their policies and practices through supervision, making notable progress in getting major banks to slash billions in overdraft fees in the past two years. The additional focus on supervision reflects the reality that investigations and enforcement are time-consuming and increasingly being challenged in court. "There's a lot of uncertainty around enforcement actions, and they are expensive," said Todd Zywicki, a law professor at George Mason University who headed a CFPB task force under Kraninger. "Rohit is using supervision to try to accomplish policy goals he probably couldn't accomplish through enforcement or rulemaking, or certainly not without a lot of drawn out litigation and uncertainty. This is a very different strategy from Cordray, who basically ran the whole agency as an enforcement shop, essentially an overgrown [attorney's general] office."

CFPB extends deadline for public comment in data brokerage probe -The Consumer Financial Protection Bureau has extended the public comment period for its investigation into how companies collect and sell consumer data. The CFPB launched a request for information in March after announcing it would collect information from data brokers, financial institutions, individual consumers and other members of the public to assess whether brokers comply with regulations such as the Fair Credit Reporting Act (FCRA), which protects the privacy of consumer credit information. The CFPB will now accept comments until July 15, which is 32 days past its original deadline. "The CFPB is aware that there is still relatively limited public understanding of data brokers' operations and other impacts, but that people are concerned about the lack of control over how data about them is collected, shared, and used," the agency said in a press release Thursday. The agency extended the deadline to encourage more stakeholders to weigh in on its efforts to safeguard consumers from data brokerage practices that operate away from public view, including by expanding the FCRA, the agency said. Data brokers monetize consumers' personal information through its collection, aggregation, licensing and sale. They include companies that interact directly with consumers, and also third parties that handle credit reporting, employee background checks and other tasks. The CFPB has expressed concern over the elusive ways data brokers collect and sell consumer information, often without users asking for consent. It clamped down on big tech companies in 2021, demanding that Amazon, Meta and Apple disclose how they obtain and distribute payment data.

CFPB warns banks that poorly deployed chatbots could harm consumers -The Consumer Financial Protection Bureau issued a warning to financial institutions about adopting technologies such as generative chatbots that may provide inaccurate information to consumers. The CFPB on Tuesday released a report, "Chatbots in Consumer Finance," highlighting concerns from frustrated consumers who have lodged complaints about chatbots, such as ChatGPT, the Microsoft chatbot made available to the public on Nov. 30. Chatbots have drawn both unprecedented popularity and concerns from its creators and critics that the technology provides wrong answers and disinformation without verifying sources. The CFPB warned that when chatbots provide inaccurate information regarding a consumer financial product or service, there is potential to "cause considerable harm." Chatbots could lead consumers to select the wrong product or service, or the technology could be used to provide inaccurate information. More pernicious is that when a consumer has an urgent need to speak to a bank representative, chatbots can thwart their efforts, the CFPB said, noting that "consumers can face repetitive loops of unhelpful jargon." "To reduce costs, many financial institutions are integrating artificial intelligence technologies to steer people toward chatbots," CFPB Director Rohit Chopra said in a press release. "A poorly deployed chatbot can lead to customer frustration, reduced trust, and even violations of the law." Financial institutions "should avoid using chatbots as their primary customer service delivery channel when it is reasonably clear that the chatbot is unable to meet customer needs," the CFPB said. The agency warned that working with customers to resolve a problem or answer a question is the basis of relationship banking and an essential function of financial institutions. All of the top ten banks in the U.S. use chatbots but the complexity of uses varies among them. Roughly 37% of consumers have interacted with a bank chatbot in 2022, typically to retrieve account information, pay bills or look up transactions, the bureau said. Most chatbots trigger limited responses to frequently asked questions, though two bank-built chatbots—Capital One's Eno and Bank of America's Erica—were created by training algorithms with real customer conversations and chat logs. Financial institutions run the risk that when chatbots provide responses, the information may not be accurate and may run afoul of consumer financial protection laws, the bureau said. Chatbots also may fail to recognize if a consumer is invoking a right to protect their privacy or data.

Ocwen, Wells triumph in ERISA case --A federal judge in New York has ruled in favor of Ocwen Financial Services and Wells Fargo, dismissing a case brought by a pension fund over fiduciary duty obligations in a securitization trust. The trustees of The United Food & Commercial Workers Union & Employers Midwest Pension Fund filed the original suit in 2018, seeking class action status. It argued Ocwen, Wells Fargo and a number of other entities, including several Altisource companies along with Front Yard Residential, committed misconduct with respect to the management of residential mortgages, which were in six trusts in which it invested. These claims had alleged the parties had breached a fiduciary duty under the Employee Retirement Income Security Act. A previous 2019 ruling by Judge Vernon Broderick of the Federal District Court of the Southern District of New York winnowed down the defendants to just Ocwen and Wells Fargo. He also narrowed the issues in the case to whether mortgages constitute "plan assets" and thus subject to ERISA. And that latter point turns on whether the securities, primarily assets of a real estate mortgage investment conduit or REMIC for short, are considered to be equity or debt. If it was determined to be equity and thus to be plan assets, ERISA would apply. The original case looked to hold Ocwen as servicer for misconduct and Wells as master servicer for not overseeing the situation, with the pension fund referencing acts that led tothe National Mortgage Settlement. The 2018 original filing also came after a follow-up case that was recently ruled in favor of Ocwen over the Consumer Financial Protection Bureau —which went to court after the servicer came to a settlement with 30 state regulators and/or attorneys general, dropping Altisource as its servicing technology provider in the agreement. But Judge Broderick's 2019 ruling, cited in his latest decision, said, notwithstanding the NMS, mortgages did not constitute plan assets, although he left the matter open for further discovery on whether the securities qualified.

After buying bank accused of redlining, Cadence gets top CRA score --Cadence Bank in Tupelo, Mississippi, has received the highest possible rating on its latest Community Reinvestment Act evaluation — a notable stamp of approval by its regulators after alleged lending discrimination by a bank that it acquired in 2021.The $51.7 billion-asset bank announced Tuesday that it received an "outstanding" rating in its most recent performance evaluation by the Federal Deposit Insurance Corp."This is a team sport, and if the whole team is not doing what they need to be doing, then you won't get an outstanding rating," CEO Dan Rollins said in an interview. "And I think an outstanding rating is a big win for us."Cadence emerged in 2021 from the merger of two banks that had both reached settlements with the Department of Justice during the previous half-decade in connection with alleged lending discrimination.The acquiring bank, Mississippi-based BancorpSouth, reached a consent order with the Justice Department and the Consumer Financial Protection Bureau in 2016. The government had alleged that BancorpSouth engaged in redlining several years earlier in connection with its mortgage business.In the months after that consent order was signed, BancorpSouth's overall CRA rating from the FDIC dropped from "satisfactory" to "needs to improve." The rating rebounded to "satisfactory" in 2018 and stayed there in 2020.In April 2021, BancorpSouth announced a deal to acquire Houston-based Cadence Bancorp., along with plans to operate the combined bank under the Cadence brand. Four months later, the Texas bank agreed to pay a $3 million penalty as part of a settlementwith the Department of Justice and the Office of the Comptroller of the Currency, which was its primary regulator. That case involved allegations of redlining predominantly Black and Hispanic neighborhoods in the Houston metropolitan area.Then in October 2021, the merger between BancorpSouth and Cadence was completed. While the acquiring bank changed its name to Cadence, it kept the FDIC as its primary federal regulator.Last year, Cadence and the National Community Reinvestment Coalition announced a five-year, $20.7 billion community benefits plan. The commitment included $11.8 billion of mortgages to homebuyers of color and low- and middle-income borrowers, $6.5 billion of loans to certain small businesses and $2.4 billion for projects, including affordable housing, to help distressed neighborhoods.In an interview Wednesday, Rollins said that last year's community benefits plan was not a factor in the bank's recent "outstanding" rating from the FDIC."There's nothing in that agreement that we weren't already doing," he said. "That agreement is a public statement that says, 'Here's what we're doing.'"

Regulators outline policies for challenging property appraisals -Federal bank regulators have taken another step to address suspected bias in the residential appraisal profession. The Federal Reserve, Federal Deposit Insurance Corp., Office of the Comptroller of the Currency, National Credit Union Administration and Consumer Financial Protection Bureau have proposed guidelines for how banks and other mortgage lenders should consider challenges to home appraisals. The joint guidance, released for public comment on Thursday, gives lenders direction on how to craft policies for initiating an appraisal review process known as a reconsideration of value, or ROV, for collateral valuation. The proposal flags a number of deficiencies that could be used to trigger an ROV, including discrimination on the grounds of race, color, religion, sex, disability, familial status or national origin."Deficient collateral valuations can keep individuals, families, and neighborhoods from building wealth through homeownership by potentially preventing homeowners from accessing accumulated equity, preventing prospective buyers from purchasing homes, making it harder for homeowners to sell or refinance their homes, and increasing the risk of default," the joint proposal reads. "Valuations that are not credible may pose risks to the financial condition and operations of a financial institution. Such risks may include loan losses, violations of law, fines, civil money penalties, payment of damages, and civil litigation."The proposal is the latest government action to emerge from the White House's property appraisal and valuation equity, or PAVE, task force, which was assembled in 2021 to address potential discriminatory practices that have contributed to racial wealth disparities. Last week, the same agencies proposed guidance on how to deal with automated valuation models. On Thursday, regulators also noted that an ROV should be initiated when appraisal reports are compiled using incomplete or inaccurate information, poor valuation models, inaccurate assumptions or conclusions that are "otherwise unreasonable, unsupported, unrealistic, or inappropriate."

Landlords Face A $1.5 Trillion Bill For Interest-Only Commercial Mortgages - Interest-only loans as a share of new commercial mortgage-backed securities issuance increased to 88% in 2021, up from 51% in 2013, according to Trepp... A trend to walking away from commercial mortgages is just beginning. The Wall Street Journal reports Interest-Only Loans Helped Commercial Property Boom. Now They’re Coming Due. Interest-only loans as a share of new commercial mortgage-backed securities issuance increased to 88% in 2021, up from 51% in 2013, according to Trepp. Nearly $1.5 trillion in commercial mortgages are coming due over the next three years. Fitch Ratings recently estimated that 35% of pooled securitized commercial mortgages coming due between April and December 2023 won’t be able to refinance based on current interest rates and the properties’ incomes and values. While many malls and hotels face high default risks, the situation is particularly dire for office owners. Mark Edelstein, chair of law firm Morrison Foerster’s global real-estate group, said he is seeing more lenders take over office buildings than at any point since the early 1990s. Lenders and borrowers had widespread belief in two things, both now proven false.

• Interest rates would stay low forever
• Property values, already clearly in a bubble, would keep rising forever

Now a $1.5 trillion bill is coming due, with property values, especially office space and some big city hotels, plunging like a rock. Xiaojing Li, managing director at data company CoStar’s risk analytics team, estimates that as much as 83% of outstanding securitized office loans won’t be able to refinance if interest rates stay at current levels.The drought, according to Newsweek, could be the worst in three decades "since the 1983–1985 North American drought." It's still uncertain whether the report will be sufficient to stabilize Corn futures.

Big commercial real estate downturn could sink 300+ banks: Report — A sharp downturn in commercial real estate performance could have a big impact on the banking sector, but not big enough to destabilize the financial system, according to analysis from one of the top real estate economists in the country.More than 300 banks have enough commercial real estate loans on their books to see their Tier 1 capital wiped out under a worst-case scenario, Richard Barkham, chief economist and head of research at CBRE, said this week during a conference hosted by the National Association of Real Estate Editors. Barkham said the real estate advisory firm analyzed Federal Deposit Insurance Corp. data on the balance sheets of 4,800 insured banks to identify the banking sector's total exposure to commercial real estate. It then applied a hypothetical stress scenario in which property values and net operating incomes fell enough to result in a total loss. Under this extreme — and unlikely — scenario, Barkham said 311 banks would fail, with the vast majority being community banks, along with about 20 regional banks and one large bank. He did not identify which banks are most exposed to this risk. Barkham said the assets of the failed banks in the scenario totaled about $600 billion, roughly three times the size of Silicon Valley Bank, which failed in March."This is going to be a problem for bank earnings. Banks are going to have to write down the loans, write down their earnings, but there isn't enough here to bring down the banking system," Barkham said. "It's irresponsible, I think, to suggest that it will."Barkham argued that there is little reason to believe that commercial real estate could drag down the banking sector in the way the residential mortgage market did in 2008. He noted that the residential real estate sector totals about $43 trillion, while all of commercial real estate accounts for just $21 trillion, with office properties — the most embattled property type — accounting for 20% of that total. "In terms of the scale of the value loss feeding through to loan loss, it's entirely different from what we saw during the great financial crisis," he said. "I'm not saying it isn't a problem. I'm just saying don't concatenate the great financial crisis with the current issue in commercial real estate."

Fannie Mae climate-risk analytics provider revealed- A major mortgage investor has been working to quantify the extent to which its holdings are exposed to potential damage from natural disasters using analytics from at least one private vendor. That government-related investor, Fannie Mae, has been working with a set of climate risk analytics from Jupiter Intelligence to assess its portfolio of over 17 million single- and multifamily assets, the technology vendor revealed Tuesday. That means Fannie has been looking at its climate risk exposures "today, in the past and every five years in the future," through technology made possible by the availability of natural-world data from sources like satellites and other forms of automation, said Rich Sorkin, CEO of Jupiter Intelligence. "All of this, the simulations, the incorporation of sensor data, the inclusion of [artificial intelligence], is leveraging advancements in AI that came out of other sectors, and also the dramatically declining cost of cloud computing and just hardware in general," said Sorkin, of the advances in automation that allowed his six-year-old company to build its models. The announcement comes as hurricane season, a peak period of climate risk between June and the end of November, gets underway. At the same time, some states with concentrated disaster risk, like Florida and California, have been struggling with insurability. Regulators, too of late, are increasingly focused on how disaster risk could affect entities they oversee. Those factors have been fueling broad mortgage industry interest in assessments Jupiter offers, which can quantify risk by using different models for various perils. In particular, home lenders are concerned about the impact on home insurance, Sorkin said. "Generally speaking, the mortgage market isn't going to work if there isn't insurance available," said Sorkin. Fannie's regulator and conservator, the Federal Housing Finance Agency, for several years has had a natural disaster response team that coordinates with the government-sponsored enterprises and other stakeholders. However, the FHFA has had work to do in managing and quantifying concerns caused by disasters or energy transitions, said Daniel Coates, deputy director for the division of research and statistics, during an online event late last year.

FHA releases draft of new foreclosure prevention option -The Federal Housing Administration has introduced a new loss-mitigation concept to add tothe set of temporary innovations that have emerged from the pandemic. The payment supplement partial claim is aimed at allowing servicers to help borrowers who meet certain criteria and can't reduce their payments through other methods like modifying at current rates that in many cases have become higher than what borrowers had at origination. "The struggle is that in the rising rate environment, if you want to recast a mortgage, someone might go from maybe around 3%, to a rate of 6% or more, and they really wouldn't see any reduction in their monthly payment," said Peter Idziak, senior associate, Polunsky Beitel Green. The draft concept appears to provide a mechanism through which the mortgage can stay at its original rate and the payment can be supplemented by a second lien loan that's applied to monthly principal for three to five years, after it absorbs any arrearages. This would allow borrowers with reduced incomes to pay reduced amounts during the three-to-five year period, according to the FHA, which is an arm of the Department of Housing and Urban Development. The payment returns to normal afterwards, potentially with an ease-in period. The FHA currently plans to test drive its existing set of post-pandemic loss mitigation options through at least October 30, 2024 and the innovation will likely have the same end date if it moves forward. Servicers would get $1,000 for implementing the new type of partial claim as a one-time incentive. How that measures up to expenses related to the work they'll need to do to manage the PSPC and the related reimbursement process remains to be seen. A worksheet the FHA is floating with the draft concept asks servicers how their costs and liquidity might be affected.

CoreLogic: 1.2 million Homeowners with Negative Equity in Q1 2023 -- From CoreLogic: CoreLogic: US Home Borrowers See First Annual Home Equity Losses Since 2012 in Q1 2023, but Overall Mortgage Performance Remains Strong CoreLogic® ... today released the Homeowner Equity Report (HER) for the first quarter of 2023. The report shows that U.S. homeowners with mortgages (which account for roughly 63% of all properties) saw home equity decrease by 0.7% year over year, representing a collective loss of $108.4 billion, and an average loss of $5,400 per borrower since the first quarter of 2022.In the first quarter of 2023, U.S. homeowners with a mortgage lost a small amount of equity year over year for the first time since early 2012, while national combined equity followed suit. As in the fourth quarter of 2022, Western states posted the largest annual home equity losses: Washington (-$74,300), California (-$59,600) and Utah (-$37,700). The equity losses in those states reflect decelerating home prices, with all three posting annual declines in February and March, according to CoreLogic’s Home Price Index.Despite these declines, home equity remains solid, with the number of underwater properties unchanged since the fourth quarter of 2022. And although some major metro areas saw equity decline on an annual basis, years of rapid appreciation in places like Los Angeles and San Francisco, which have negative equity shares of 0.9%, is keeping homeowners in these metros in good standing.Negative equity, also referred to as underwater or upside-down mortgages, applies to borrowers who owe more on their mortgages than their homes are currently worth. As of the first quarter of 2023, the quarterly and annual changes in negative equity were: The above graph is from CoreLogic and compares Q1 2023 to Q4 2022 equity distribution by LTV. There are still a few properties with LTV over 125%. But most homeowners have a significant amount of equity.

Mortgage prepayment speeds were up 22% -Mortgage-backed securities prepayment speeds increased 22% month-to-month in May, but that was largely due to seasonality related to traditional spring buying activity, a Keefe, Bruyette & Woods report stated.The conditional prepayment rate across all issuer types was 6.2 in May, versus 5.1 in April. For May 2022, the CPR was 9.9. "However, prepayments still remain very low, and we expect speeds to remain low for the foreseeable future as purchase activity remains subdued and the majority of the mortgage market is still 300 basis points out of the money to refinance," Bose George, a KBW analyst, wrote. The latest Mortgage Bankers Association Weekly Application Survey put the 30-year conforming mortgage at 6.81%, the jumbo at 6.74% and loans insured by the Federal Housing Administration with an average rate of 6.73%. Those rates are keeping many existing homeowners from seeking a new residence as well as from refinancing. A year ago, the conforming 30-year FRM averaged 5.4% but in 2021, it was 3.15%. "It would take a significant decline in rates (which we do not expect) for transaction volumes to increase meaningfully" for mortgage originators," George said. George estimated just 1% of the market is in the money to refi. If rates were to fall 300 basis points, it would make financial sense for 28% of current borrowers to refinance. At a 200 basis point decline that shrinks to 12% and at 100 basis points, just 4% would be in the money. KBW remains positive on the six mortgage insurers "given that we expect credit to hold up better than current valuations (near/below book value) suggest," George said. "While we are neutral on most mortgage originators, gain-on-sale margins appear to have bottomed, so we are becoming more constructive."

Realtor.com Reports Weekly Active Inventory Up 13% YoY; New Listings Down 25% YoY -- Realtor.com has monthly and weekly data on the existing home market. Here is their weekly report from economist Jiayi Xu: Weekly Housing Trends View — Data Week Ending June 3rd, 2023 Active inventory growth slowed again, with for-sale homes up just 13% above one year ago. The number of homes for sale continues to grow, but compared to one year ago, the pace is slowing. While today’s shoppers still have many more homes to consider than last year’s shoppers did, worries about high inflation, rising interest rates, and escalating home prices have caused many prospective buyers, especially more first-time buyers, to postpone their plans to purchase a home. This, in turn, has contributed to an increase in the number of homes listed for sale. However, the ongoing decrease in new listings has restrained the growth of active inventory, and there is a possibility of further deceleration in the upcoming weeks. New listings–a measure of sellers putting homes up for sale–were down again this week, by 25% from one year ago. The number of newly listed homes has been lower than the same time the previous year for the past 48 weeks. The fluctuations in the decline of new listings indicate that sellers are exercising caution in their selling decisions, likely due to being locked into mortgage rates that are significantly lower than the current rates. Here is a graph of the year-over-year change in inventory according to realtor.com. Inventory is still up year-over-year - from record lows - however, the YoY increase has slowed sharply recently. This was the smallest YoY increase since June 2022.The recent trend suggests active inventory could be down YoY in late June!

Fed's Flow of Funds: Household Net Worth Increased $3.0 Trillion in Q1 --The Federal Reserve released the Q1 2023 Flow of Funds report today: : Financial Accounts of the United States. The net worth of households and nonprofits rose to $148.8 trillion during the first quarter of 2023. The value of directly and indirectly held corporate equities increased $2.4 trillion and the value of real estate decreased $0.6 trillion. ... Household debt increased 2.2 percent at an annual rate in the first quarter of 2023. Consumer credit grew at an annual rate of 4.3 percent, while mortgage debt (excluding charge-offs) grew at an annual rate of 2.5 percent. Click on graph for larger image. The first graph shows Households and Nonprofit net worth as a percent of GDP. Net worth is down $3.8 trillion from the all-time high in Q1 2022. This includes real estate and financial assets (stocks, bonds, pension reserves, deposits, etc) net of liabilities (mostly mortgages). Note that this does NOT include public debt obligations. The second graph shows homeowner percent equity since 1952. Household percent equity (as measured by the Fed) collapsed when house prices fell sharply in 2007 and 2008. In Q1 2023, household percent equity (of household real estate) was at 69.6% - down from 70.1% in Q4, 2022. This is close to the highest percent equity since the early 1980s. Note: This includes households with no mortgage debt. The third graph shows household real estate assets and mortgage debt as a percent of GDP. Note this graph was impacted by the sharp decline in Q2 2020 GDP. Mortgage debt increased by $45 billion in Q1. Mortgage debt is up $1.82 trillion from the peak during the housing bubble, but, as a percent of GDP is at 47.3% - down from Q4 - and down from a peak of 73.3% of GDP during the housing bust. The value of real estate, as a percent of GDP, decreased in Q1 - after peaking in Q2 2022 - and is well above the average of the last 30 years.

Ships pile up in West Coast ports in labor fight, threatening supply chain chaos - Ships are piling up in some West Coast ports, and commercial shipping prices are spiking amid a labor fight between port operators and workers, threatening to trigger a new round of supply chain disruptions that could lead to shortages or higher prices. The fight is sparking concerns among lawmakers who worry surging container prices could ripple through the economy and hit all sorts of consumer goods in a repeat of supply chain problems following pandemic shutdowns. “The shippers I know are afraid of what might happen if we shut down our ports,” said Rep. Val Hoyle (D-Ore.), a member of the House Transportation and Infrastructure Committee. “People are concerned.” Data from logistics platform Go Comet shows median delay times trending upward this week in several key West Coast ports, including Los Angeles, Seattle and Long Beach, Calif. Wait times at the port of Seattle are now more than a week. People who study the data say the rates for shipping containers on the West Coast are rapidly rising. “Container rates for importing 40-foot containers to the United States’s West Coast over the past week have jumped 20 percent week-over-week, likely as a result of the anticipated congestion at the ports. This follows a dramatic lull in rates after last year’s highs,” said Eytan Buchman, who works with the logistics booking company Freightos. In the port of Oakland, Calif., operations were shut down over the weekend due to a labor strike but resumed Monday “with heavy traffic experienced at the gate,” according to German shipping company Hapag-Lloyd. “Operations continue as normal across the U.S. and Canada with the exception of west coast terminals which were temporarily shut down due to labor action,” the company wrote in a regional operations summary on Wednesday. Negotiations between the International Longshore and Warehouse Union (ILWU), which represents some 42,000 workers across 60 chapters in Pacific ports, and the Pacific Maritime Association (PMA), which negotiates for 70 shipping companies and terminal operators at 29 West Coast ports, are being held behind closed doors.

ISM® Services Index Decreases to 50.3% in May --The ISM® Services index was at 50.3%, down from 51.9% last month. The employment index decreased to 49.2%, from 50.8%. Note: Above 50 indicates expansion, below 50 in contraction. From the Institute for Supply Management: Services PMI® at 50.3% May 2023 Services ISM® Report On Business®“In May, the Services PMI® registered 50.3 percent, 1.6 percentage points lower than April’s reading of 51.9 percent. The composite index indicated growth in May for the fifth consecutive month after a reading of 49.2 percent in December, which was the first contraction since May 2020 (45.4 percent). The Business Activity Index registered 51.5 percent, a 0.5-percentage point decrease compared to the reading of 52 percent in April. The New Orders Index expanded in May for the fifth consecutive month after contracting in December for the first time since May 2020; the figure of 52.9 percent is 3.2 percentage points lower than the April reading of 56.1 percent.“The Supplier Deliveries registered 47.7 percent, 0.9 percentage point lower than the 48.6 percent recorded in April. In the last six months, the average reading of 48.0 percent (with a low of 45.8 percent in March) reflects the fastest supplier delivery performance since June 2009, when the index registered 46 percent. (Supplier Deliveries is the only ISM® Report On Business® index that is inversed; a reading of above 50 percent indicates slower deliveries, which is typical as the economy improves and customer demand increases.)“The Prices Index was down 3.4 percentage points in May, to 56.2 percent. The Inventories Index expanded in May after a month of contraction and two previous months of growth, preceded by eight straight months of contraction; the reading of 58.3 percent is up 11.1 percentage points from April’s figure of 47.2 percent. The Inventory Sentiment Index (61 percent, up 12.1 percentage points from April’s reading of 48.9 percent) expanded after a month of contraction preceded by four months of growth, with a four-month period of contraction before that. The Backlog of Orders Index registered 40.9 percent, an 8.8-percentage point decrease compared to the April figure of 49.7 percent and the index’s lowest reading since May 2009 (40 percent). The PMI was below expectations.

US services sector softens, factory orders boosted by defense - (Reuters) - The U.S. services sector barely grew in May as new orders slowed, pushing a measure of prices paid by businesses for inputs to a three-year low, which could aid the Federal Reserve's fight against inflation. Meanwhile, factory orders rose for a second straight month in April, but aside from a jump in orders for national defense, overall manufacturing activity was soft, in keeping with private survey data showing the sector now in a prolonged downturn. The Institute for Supply Management (ISM) said on Monday its non-manufacturing PMI fell to 50.3 last month from 51.9 in April. A reading above 50 indicates growth in the services industry, which accounts for more than two-thirds of the economy. Economists polled by Reuters had forecast the non-manufacturing PMI would edge up to 52.2. Though the PMI remains above the 49.9 level, which the ISM says over time indicates growth in the overall economy, last month's slowdown heightened the risks of a recession. The ISM reported last week that its manufacturing PMI was stuck below the 50 threshold in May for the seventh straight month, the longest such stretch since the Great Recession. The services sector has benefited from consumers shifting spending after splurging on goods during the height of the coronavirus pandemic when social activities such as dining out and traveling were restricted. But following 500 basis points worth of interest rate increases from the Fed since March 2022, consumers could be focusing more on basic needs. A measure of new orders received by services businesses fell to 52.9 last month from 56.1 in April. With demand cooling, services inflation also slowed. This is good news for the U.S. central bank's efforts to bring inflation down to its 2% target. The services sector is at the center of the battle against inflation, as services prices tend to be stickier and less responsive to rate hikes. A gauge of prices paid by services businesses for inputs dropped to 56.2, the lowest level since May 2020, from 59.6 in April. Some economists view the ISM services prices paid gauge as a good predictor of personal consumption expenditures (PCE) inflation. The Fed tracks the PCE price indexes for monetary policy. Financial markets see more than a 70% chance that the central bank will keep its policy rate unchanged at its June 13-14 meeting, according to CME Group's FedWatch Tool. Services sector employment declined in May. That was, however, at odds with so-called hard data showing persistent strength in the labor market. The government reported on Friday that increased by 339,000 jobs in May, with private service-providing employment rising by 257,000 jobs. There were 1.8 job openings for every unemployed person in April. First-time applications for state unemployment benefits remain very low. A 36% jump in defense capital goods bookings buoyed the otherwise lackluster factory orders report for April that was released on Monday by the Commerce Department. Factory orders increased 0.4% after a 0.6% gain in March, the Commerce Department said. Economists polled by Reuters had forecast orders would rise 0.8%. Orders increased 1.4% through April from a year earlier. Excluding the defense sector, orders were down 0.4%, and excluding transportation orders - where military orders again had the largest footprint - bookings were down 0.2%. With consumer spending shifting more toward services, consumer goods orders slid for a third straight month to their lowest level since February 2022. A proxy for business spending plans on equipment, however, did show improvement. Orders for non-defense capital goods excluding aircraft rose 1.3% in April, although that was fractionally lower than a preliminary gain of 1.4% reported last month. Shipments of these so-called core capital goods, which are used to calculate business equipment spending in the gross domestic product report, rose 0.5%, unchanged from what was previously reported. Business spending on equipment has contracted for two straight quarters.

Canada wildfire smoke delays East Coast flights for a second day - The Federal Aviation Administration on Thursday began slowing flights in the New York City area for a second day, as Canadian wildfire smoke continues to impact visibility on the ground. As of 10 a.m. Thursday, the FAA delayed all inbound flights to Newark Liberty International Airport and paused incoming flights from the Northeast, Ohio and mid-Atlantic to LaGuardia Airport and Philadelphia International Airport. So far the amount of delayed flights is relatively small — 57 at Newark and 73 at LaGuardia as of Thursday afternoon — but those numbers could climb. “If there’s good news, it’s that this has led to relatively few cancellations,” DOT Secretary Pete Buttigieg said on MSNBC. “We have been able to keep the system going through ground delay programs, but certainly, if you’re planning a trip today or in the next few days, you want to keep a close tab on the airline information...because it’s likely if you’re going through these affected airports that those delays are going to affect you.” The FAA also cautioned that other East Coast airports could face delays on Thursday. “The FAA will likely need to take steps to manage the flow of traffic safely into New York City, DC, Philadelphia and Charlotte due to reduced visibility from wildfire smoke,” the agency said in a statement. FAA spokesperson Kevin Morris explained that wildfire smoke causes more delays than fog or rain because the air is filled with solid material instead of liquid, which makes navigational equipment on planes and on the ground less effective. Because of that, the FAA is requiring greater distances between arriving and departing flights along with limiting certain types of aircraft that can land, which leads to delays.

Scheme By California Woman Costs USPS $60 Million In Revenue A California woman faces up to 10 years in prison over a counterfeit postage scheme that cost the USPS an estimated $60 million. Lijuan "Angela" Chen was arrested on May 24 after postal inspectors say she shipped nine million parcels over the course of six months using shipping labels belonging to a meter number which had been phased out in 2020, despite indicating that it had been purchased in 2023. Chen faces one count of conspiracy to defraud the United States, and one count of use or possession of counterfeit postage per the filing, Insider reports. According to an inspector's affidavit, the USPS would have lost $60 million in revenue due to the apparent scheme. He also carried out surveillance on a warehouse, watching a delivery truck travel to a USPS facility "where it unloaded twelve large cardboard boxes full of parcels containing counterfeit postage," per the affidavit. Other inspectors saw one truck, which had been turned away from a distribution center for trying to ship mail with counterfeit postage, parked outside Chen's house a day later, according to the court document. -Insider "The evidence obtained in the investigation shows that Chen is operating a business which provides shipping and postage services to businesses, including e-commerce vendors operating out of China, that seek discounted USPS rates for mailing their products within the United States," reads the filing. "Multiple examinations conducted by USPS and USPIS staff have revealed that the vast majority of the postage used by Chen and her business to ship goods within the United States is counterfeit." According to prosecutors, Chen's husband first ran the scheme before traveling to China in 2019, after which she is believed to have continued it up to August 2022.

Federal judge rejects Tennessee drag show ban as unconstitutional (Reuters) - A federal judge has ruled that Tennessee's law restricting drag performances in public or where children were present was unconstitutional, striking a blow to efforts in U.S. states to regulate LGBTQ conduct. Tennessee Governor Bill Lee in February had signed the bill passed by the state's assembly that aimed to restrict drag performances, putting the state at the forefront of a Republican-led effort to limit drag in at least 15 states in recent months. U.S. District Judge Thomas Parker, an appointee of former Republican President Donald Trump, ruled late on Friday that the law was "both unconstitutionally vague and substantially overbroad." The First Amendment to the Constitution commands that laws infringing on freedom of speech must be narrow and well defined, Parker said in the 70-page ruling. "Simply put, no majority of the Supreme Court has held that sexually explicit — but not obscene — speech receives less protection than political, artistic, or scientific speech," Parker said in the ruling.

More Ohioans Skipping Meals to Pay for Household Expenses --Record-high demand has prompted the Ohio Association of Food Banks to request additional funding in the biennial budget to increase the capacity of food-purchasing programs. Last year the state's food banks distributed more than 242 million pounds of food and grocery items to residents in need. Joree Novotony, chief of staff for the Ohio Association of Food Banks, said the funding increase would help alleviate the strain on families forced to make tough choices. 68% of Food Bank clients reported that in the past two to three months, they've chosen between paying for food, transportation or gas, according to a new report. "If you can't afford to put gas in your car to get through your shift at work, you're going to lose, you're going to lose wages, might even lose your job, right, so you're going to put the gas in the car. And then when you need to buy groceries the next day, that's where you're going to cut back," Novotony said. More than 8 in 10 Ohio food bank clients reported seeking help with emergency food because of higher food costs. Ohio's Food Program and Agricultural Clearance Program works to procure Ohio-grown fruits and vegetables, shelf-stable items, protein, dairy and other grocery items to pantries across the state. Novotony added more than half of food-bank clients reported having to choose between paying for food, health care or medicine within the past two or three months. "That is not a choice that anyone should make." Novotny continued. "Both of those are critical toward managing that disease and promoting health and well-being." She added the Ohio Association of Foodbanks and other hunger-relief groups are urging lawmakers to implement a state-funded minimum SNAP benefit for older adults, which would increase monthly SNAP allotments to $50 per month for the state's 70,000, 60 and older households.

Summer Break is Broken for Many Rural Tennessee Kids - An advocacy group is expanding summer learning opportunities for families in the Volunteer State. In Tennessee and across the country, isolation and learning loss impact many rural kids once school lets out. Research shows children can lose up to 34% of what they learned during the prior school year during the summer. Chapple Osborne-Arnold, Tennessee state director for Save the Children, said for kids living in poverty, summer could mean children are home alone and hungry because they are not getting meals from school. She explained they are partnering with several districts and counties on robust summer programs to keep kids engaged and fed. "We can bring them into the school building, they can continue to learn, we can provide some enrichment activities," Osborne-Arnold outlined. "And most importantly, they get the nutrition and the two meals plus a snack a day." According to the Tennessee Commission on Children and Youth, 18.4% of children are living in poverty. Osborne-Arnold pointed out they provide children with books, supplies, meals and other resources over the summer. They also offer kindergarten transition programming, parent education and nutritious cooking classes. Osborne-Arnold added this year they were able to kick off their mobile unit in one of Tennessee's counties, which provides families and children younger than 18 with free food. Shane Garver, head of program design and impact for Save the Children, explained while poverty affects millions of children across the U.S., its strongest grip is on the lives of children in rural communities. He noted with rural child poverty higher than in urban areas in 40 states, his organization is working on making summer fair. "We create fun and inviting summer camps, like kids across the country might have the opportunity to go to that focus on reading and math," Garver emphasized. "But also focus on STEM things like Lego robotics, focus on enrichment activities and things that can really stretch and inspire children." Garver added transportation is a barrier for rural kids which can prevents them from being able to access nutritious food and summer feeding programs. He added it is why Save the Children partners with community organizations to develop creative ways of getting food to the kids who need it most.

Arizona governor vetoes transgender bathroom bill, condemns it as ‘attack’ on children -Arizona Gov. Katie Hobbs (D) vetoed a bill that would have prevented students in public schools from using a bathroom or changing facility for a sex different from their gender assigned at birth. Hobbs said in her veto message on Thursday that she will veto every bill that “aims to attack and harm children,” as she said when vetoing another bill last month that would have restricted the use of a student’s pronouns consistent with their gender identity. “SB1040 is yet another discriminatory act against LGBTQ+ youth passed by the majority at the state legislature,” Hobbs wrote. Republicans hold a narrow majority in both the state House and Senate. The bill passed along party lines earlier this year. The legislation would have required public schools to establish a “reasonable accommodation” for students who refuse to use a multi-occupancy bathroom or changing facility designated for a specific sex and who send an accommodation request in writing. But the bill would not consider a reasonable accommodation to be providing them access to a restroom or changing facility for a sex consistent with their gender identity while people of the opposite sex “are present or could be present.” The legislation, if signed, would have also covered multi-occupancy sleeping quarters during a school-sponsored activity. The bill would have also provided anyone who encounters someone of the opposite sex in their bathroom, changing facility or sleeping quarters the ability to sue the school — unless the people are from the same family.

Protesters converge on MCPS headquarters over LGBTQ+ books - A large group of Muslim and Christian protesters gathered outside Montgomery County Public School headquarters in Rockville on Tuesday morning carrying banners stating “religious freedom” as they chanted, “Protect our children!”On the other side of the street, a smaller group of counter-protesters waved rainbow flags and danced to Lady Gaga songs playing over a boombox as they chanted back, “Protect all children!”A MoCo360 reporter counted at least 60 pro-opt-out protesters outside the building around 10:30 a.m. and at least two dozen counter-protesters. Witnesses say there may have been many more attendees throughout the morning.The gatherings stem from a policy revision MCPS announced on March 24 regarding its use of LGBTQ+ inclusive storybooks in school. According to the newly clarified guidelines, schools will not give prior notice to parents when inclusive texts are read, and families will not be allowed to opt students out. Three families recently filed a federal lawsuit against school officialsdemanding reinstatement of the opt-out option, alleging violation of their First Amendment rights. MCPS has consistently declined to comment on the suit, with spokespeople saying they cannot comment on pending litigation. Protesters supporting the opt-out included representatives from national right-wing group Moms for Liberty, an organization the Southern Poverty Law Center has designated an extremist groupwith a documented history of attacking the LGBTQ+ community. Counter-protesters included County Councilmember Kristin Mink (D-Dist. 5), former school board member Jill Ortman-Fouse and Montgomery County Council of PTAs leader Laura Stewart.Wael Elkoshairi attended Tuesday’s protest as a leader of Family Rights for Religious Freedom, a recently-formed grassroots group of parents and residents pushing for MCPS to reinstate the opt-out. Elkoshairi said as the father of MCPS students, he didn’t oppose the LGBTQ+ books when they were first introduced in January 2023, because he could have his students removed from the classroom when the books were read.“We respect these people. It’s not us versus the LGBT,” he said. “But elementary students don’t have the requisite amount of emotional intelligence to handle these discussions. This is the time to teach algebra.”

Canadian wildfire smoke prompts MCPS to cancel outdoor activities --Smoke from Canadian wildfires has prompted Montgomery County Public Schools to cancel or reschedule all outdoor recess and other activities scheduled for Wednesday and Thursday, according to an email alert sent to families late Wednesday morning. School officials say field trips and outdoor graduations may also be impacted.The county is experiencing extremely poor air quality due to smoke from wildfires in Quebec, and officials are encouraging residents to limit time spent outdoors.“Athletics will operate under guidelines similar to heat index warnings, which include reduced outdoor time and increased monitoring of athletes. Field trips may need to be rescheduled or modified depending on the location and extent of outdoor activity. Adjustments could be made to outdoor graduations,” the email from central office read.The air quality index for the suburban D.C. region hit a code-red unhealthy level Wednesday that could cause negative health effects, according to state data. The index, which accounts for pollution in the air, measured as high as 176 in Montgomery County on a scale of 0-500, as of Wednesday morning. Values below 100 are generally considered healthy for humans.“Fires over Quebec continue to produce prodigious smoke which is being continuously funneled on northerly flow towards the Mid-Atlantic,” a report from the Maryland Department of the Environment reads. The influx of fine smoke particles will continue through Thursday, according to the report.Research shows air pollutants like smoke particles can exacerbate preexisting health conditions, reduce lung function and cause further health complications, particularly in vulnerable populations. According to MCPS, symptoms associated with wildfire smoke particulates can include:

• Coughing
• Chest tightness or trouble breathing
• Itchy or runny eyes or nose
• Burning eyes
• Itchy or dry throat, and
• Increased asthma symptoms for those with asthma

The school district also recommends avoiding strenuous activity and wearing a face mask to provide additional protection from current hazardous air conditions.

7 people shot outside Virginia high school graduation; 2 suspects in custody - Seven people were wounded Tuesday during a shooting outside a high school graduation ceremony in Richmond, Virginia, police said. The graduation ceremony at the Altria Theater was abruptly canceled after shots rang out shortly after 5 p.m at Monroe Park, near the theater, Richmond Police acting chief Rick Edwards said at a news conference Tuesday evening. Off-duty officers working security inside the ceremony immediately responded to the scene and found three shooting victims with life-threatening injuries, and four with non-life-threatening injuries, Edwards said. Others were treated for different injuries, including two people from falls, one person who was hit by a car during the shooting, and three people who were treated for anxiety, Edwards said. The acting police chief said two suspects had been taken into custody and there was currently no ongoing threat to the community. Police did not identify the suspects or offer a motive for the shooting.

Gunman shoots two dead, wounds five others at Virginia high school graduation -(Reuters) - A man armed with four handguns killed two people and wounded five others when he fired into a crowd outside a high school graduation ceremony in Richmond, Virginia, on Tuesday, police said. Police said they arrested one suspect, a 19-year-old man who knew one of the victims and shot at him amid the crowd that had just emerged from the Huguenot High School's commencement ceremony inside a theater on the campus of Virginia Commonwealth University. The suspect was likely to be charged with two counts of second-degree murder in addition to other offenses, interim Richmond Police Chief Rick Edwards told a press conference. Edwards called the shooter's behavior "disgusting and cowardly," since his dispute appeared to be with just one person. "When you have a crowd like this, innocent people are going to be caught up in the mayhem, and that's what happened today. " Edwards said. "Obviously, this should have been a safe space...It's just incredibly tragic that someone decided to bring a gun to this incident and rain terror on our community." [1/3] Law enforcement officers investigate at the scene after a gunman opened fire in a park as high school graduates and their families emerged from a theater where commencement exercises had just concluded, in Richmond, Virginia, U.S. June 6, 2023 in this picture obtained from social media. Clark... Read more The United States has grown accustomed to mass shootings in public places such as schools, shopping centers and churches. The mass shooting was the country's 279th in the first 157 days of 2023, according to the Gun Violence Archive, using the definition of four or more people are shot or killed in a single incident, not including the shooter. The deceased were men aged 18 and 36, Edwards said. He did not confirm a WWBT television news report that the victims were father and son.

Gunman who opened fire after Virginia high school graduation targeted graduate, Richmond police say (AP) — A gunman who opened fire minutes after a high school graduation in Richmond, Virginia, targeted an 18-year-old graduate he had a long-running dispute with, police said Wednesday. Shawn Jackson, 18, and his father, Lorenzo Smith, 36, were both killed Tuesday in the gunfire, which sent hundreds fleeing in panic outside the state capital’s Altria Theater after the graduation ceremony for Huguenot High School. Five other people were wounded by gunfire, and at least 12 more suffered other injuries or were treated for anxiety due to the mayhem, according to police. “This was targeted at one individual. ... That’s what we know at this time,” Edwards said during a news conference Wednesday. Pollard was arraigned Wednesday morning on two counts of second-degree murder, said Colette McEachin, Richmond’s top prosecutor. Pollard said he intends to hire an attorney, so the court continued the case until a hearing later this month, McEachin wrote in an email. Pollard was ordered held without bond. Court records did not immediately list an attorney who could speak on his behalf. Jackson had just received his diploma at the graduation ceremony and had walked to a nearby park with his father to reunite with the rest of their family when the shooting started, said Tameeka Jackson-Smith, Jackson’s mother and Smith’s wife. She said Smith was Jackson’s father, while Edwards later referred to Smith as his stepfather. Jackson-Smith told The Associated Press that her and Smith’s 9-year-old daughter was hit by a car in the chaos that erupted afterward. The girl was treated for leg injuries and released from the hospital, Jackson-Smith said.

Trial opens for former Florida deputy in Parkland school shooting - (Reuters) - A Florida prosecutor and a defense attorney traded opening arguments on Wednesday at the trial of a former sheriff's deputy accused of failing to protect students during the 2018 mass shooting at Parkland's Marjory Stoneman Douglas High School. Scot Peterson was on duty as a school resource officer when a gunman entered a building in Feb. 14, 2018 and opened fire, killing 17 and wounding another 17. Peterson never went inside while the shooting was underway, according to the Broward County Sheriff's Office and surveillance video. Peterson, 60, was charged in 2019 with 11 criminal charges of child neglect, culpable negligence and perjury, carrying a combined maximum prison sentence of nearly 97 years. It is highly unusual for law enforcement officers to be charged with failing to take action or provide care, raising the possibility that Peterson's trial will set legal precedents. Broward County Assistant State Attorney Steven Klinger told the 6-member jury on Wednesday that the contract between the county sheriff's office and the school endowed Peterson with a unique duty to protect members of the school community. "He's the lead security person at that school," Klinger said. "He is trained on active shooter scenarios; he is trained how to handle a situation where he is the only law enforcement person there to handle an active shooter."

Backlash Grows on Removing DEI Standards from GA Teacher Training -- Educator training programs in Georgia would not contain diversity, equity and inclusion terms, if the Georgia Professional Standards Commission decides this month to remove them.Groups are voicing concerns about it, both for teachers and students. The changes would affect all educators up to Grade 12, from principals and superintendents, to reading specialists and school counselors. The proposal would remove terms like "equitable," and use words like "unique" or "different" instead of "diverse."Mikayla Arciaga, Georgia director of advocacy and education for the Intercultural Development Research Association, said the result would diminish the evidence-based training teachers want, and create obstacles for addressing student needs."It's a politicization of something that should not be political, which is that every classroom should feel safe for every child," Arciaga asserted. "And so, to walk away [from] that language that explicitly said, 'We will serve you regardless of these things,' we're inherently swapping that out for a more deficit-focused lens. I think it has just, like, inherently negative implications." Proponents of the changes say they are crucial to prevent misinterpretation or confusion about the language, thus better equipping new educators. But Arciaga contended teachers can better serve students from diverse backgrounds if they focus on cultural responsiveness.In 2020 research from Northwestern College, adopting culturally responsive teaching methods was found to significantly boost student engagement and foster a positive classroom atmosphere. Mason Goodwin, organizer for the Georgia Youth Justice Coalition, said his organization also opposes the changes. He warned they could not only negatively affect students but reduce competitiveness in terms of hiring and retaining educators."I think there's kind-of two sides to this," Goodwin explained. "One is how this impacts future teachers, which is like, all of a sudden, the accreditation that they're getting isn't going to match what other states have. Then in the classroom, our teachers need to be aware of all the different situations students are coming from."

Sacramento and city's school district to pay $52M to settle classroom sex abuse case (AP) (AP) — Sacramento and the city’s school district will pay more than $52 million to settle lawsuits alleging negligence by officials after an aide pleaded guilty to sexually abusing at least eight elementary school students nearly a decade ago.Joshua Vasquez was sentenced to 150 years to life in prison in 2016 after admitting he molested children as young as seven in a classroom at Mark Twain Elementary School. Vasquez worked as program leader for the city’s START after-school program and also as a part-time employee with the Sacramento City Unified School District.A settlement agreement finalized last week calls for a $40 million payout for five of the victims, with the city paying about 60% and the district the rest, the Sacramento Bee reported Sunday. A separate deal for a sixth victim resulted in a $12.5 million payout.As part of the settlement, the city also provided one-page letters to the victims lauding their courage for coming forward.

Oklahoma school board approves nation’s first religious charter school - An Oklahoma school board on Monday voted to approve a bid to open the nation’s first religious charter school, sparking backlash and questions about the constitutionality of the move to use taxpayer dollars to fund a religious school.Oklahoma’s Statewide Virtual Charter School Board in the meeting approved in a 3-2 vote a plan to create St. Isidore of Seville Catholic Virtual School. “We are elated that the board agreed with our argument and application for the nation’s first religious charter school,” Brett Farley, the executive director of the Catholic Conference of Oklahoma, said after the decision. “Parents continue to demand more options for their kids, and we are committed to help provide them,” he added. The journey for this Catholic school is far from over as many disagree with the idea of a charter school, which receives taxpayer dollars along with private donations, run by a religious organization. Opponents argue it violates the separation between church and state. The nonprofit Americans United for Separation of Church and State on Monday bashed the decision as a violation of religious freedoms. “It’s hard to think of a clearer violation of the religious freedom of Oklahoma taxpayers and public-school families than the state establishing the nation’s first religious public charter school,” the group said in a statement, calling the decision “a sea change for American democracy.”“State and federal law are clear: Charter schools are public schools that must be secular and open to all students,” Americans United said. The group says it’s preparing legal action.Though some religious schools do receive government money, the new St. Isidore school would be fully government-funded, the New York Times reports. Supporters of the school argue charter school laws are different in each state and, while in some states a religious charter school may be impermissible, it is allowed under Oklahoma law. Some also see Monday’s approval as a win for religious freedom. And while school choice is popular among conservatives, even top officials in Oklahoma are split on the decision.

University Of Texas Students Behind Censorship Project Targeting Conservative News Outlets Students at the University of Texas at Austin were found to be responsible for a censorship project that targeted conservative news outlets. The Global Disinformation Index’s (GDI) report, which called for the blacklisting of conservative news organizations, was written up by students under the direction of academics working at the University of Texas at Austin’s Global Disinformation Lab (GDIL), The Federalist reported. In the disinformation index, the group labeled several conservative media companies as the riskiest. The academics in charge of the lab allegedly held an anti-conservative bias in readings of internal communications, along with several other accusations found in the over 1,000 pages of documents reviewed by The Federalist.GDI released a report with help from researchers at the University of Texas at Austin on Dec. 16, 2022, called “Disinformation Risk Assessment: The Online News Market in the United States.” After the report admitting the targeting conservative outlets was published, The Federalist filed a public records request at UT Austin in February, demanding all communications related to GDIL’s work with the GDI on the news media review. Despite actions by UT Austin to withhold some of the details of its methodology and research over concerns regarding “confidentiality of trade secrets” and “certain commercial or financial information,” the internal documents that were released revealed many concerning details. The files showed that the GDI paid the university to have student researchers, with little training, apply the organization’s screening methodology to rate the various media outlets for its final report, which gave conservative news outlets low ratings. GDI sold the university project to GDIL with the goal of influencing the 2022 midterms, The Federalist reported. Student researchers were recruited by being informed that their work would be “immediately valuable” since GDI would release it early “to make waves ahead of the midterms” and affect reportage of the 2022 election. After the team was finished, UT Austin retained any surplus funds that GDI received for the work, leading critics to question how a state-funded university could profit from such a politically biased program.

Saying That Students Embrace Censorship on College Campuses Is Incorrect - The claim that college students censor viewpoints with which they disagree is now common. Versions of this claim include the falsehoods that students “shut down” most invited speakers to campuses, reject challenging ideas and oppose conservative views.Such cynical distortions dominate discussions of higher education today, misinform the public and threaten both democracy and higher education. Indeed, politicians in states such as Florida, Texas and Ohio argue that a so-called “free speech crisis” on college campuses justifies stronger government control over what gets taught in universities.Since 2020, numerous state legislatures have attempted to censor forms of speech on campuses by citing exaggerations about students and their studies. Passing laws to ban certain kinds of speech or ideas from college campuses is no way to promote true free speech and intellectual diversity. The most common targets of such censorship are programs that discuss race, gender, sexuality and other forms of multiculturalism. The character of public debates about higher education is important. Millions of Americans rely on a healthy system of university education for professional and personal success. Rampant cynicism about higher education, leading to declines in public support for it, only undermines their pursuits. The idea that college students are hostile to opposing viewpoints is false. Pundits and media personalities have promoted this falsehood aggressively. Such figures have benefited, politically or financially, from sensationalism about a college “free speech crisis.”In opinion polls, college students typically express stronger support for free speech and diverse viewpoints than other groups. Partisan organizations often cherry-pick that data to make it seem otherwise. But poll results tell only part of the story about college campuses today.Several thousand institutions make up U.S. higher education. The system includes hundreds of thousands of students from different backgrounds. College campuses are often more demographically and intellectually diverse than surrounding communities.Judgments about higher education based on sweeping generalizations about college students conflict with the full realities of campus life. A wider range of perspectives, including from students themselves, can enrich debates about university education. Universities protect free speech more effectively than do other parts of society. They don’t do so perfectly, but more effectively. Manufactured outrage about college students who protest invited speakers fuels sensationalism about free speech on campuses. Despite occasional disruptions over bigoted speakers, universities offer numerous forums for free speech, open debate and intellectual diversity. Just one large university holds thousands of classes, meetings, performances and other events on a daily basis. People freely express their views and pursue new ideas in those settings. Now multiply that reality by several thousand different institutions.

Ohio Senate bill aimed at combatting perceived liberal bias could cost colleges millions - .– Legislation passed by the Ohio Senate last month to make sweeping changes to universities’ rules around alleged political bias or the teaching of “controversial beliefs” will shoulder them with new costs and lost revenues, colleges say.The findings – aggregated by the Inter-University Council of Ohio after surveying its member colleges on an early draft of the bill – offer the first quantitative look at Senate Bill 83.According to the schools, the original version of the bill would cost them hundreds of thousands to millions in new costs to comply. Some worried that they could also lose tens of millions in federal grants that consider applicants’ diversity, equity, and inclusion policies. Many said they expect lawsuits under different elements of the bill.In the case of Ohio’s only public historically Black college or university, the originally introduced bill could cost it a designation that is central to its identity, according to the IUC.The version of the bill that passed the Ohio Senate included several amendments that IUC lobbyist Niki Clum said will limit some of the financial burden to universities. But given the long list of variables – like how many “intellectual diversity rights” complaints will be submitted or whether state officials allow certain exceptions to a ban on diversity, equity, and inclusion programs – it’s hard to estimate a precise cost.Even after the changes, the nonpartisan Legislative Service Commission determined the bill may cause schools’ administrative costs to “increase significantly” but it doesn’t offer dollar figures. Despite the price tag, the legislation passed by the Senate doesn’t provide schools money to comply.The survey findings, obtained by public records request, were gathered to assist the LSC in estimating the cost of the bill, according to Clum.The bill passed on a 21-10 vote last month with only Republicans in support and is now under review in the Ohio House. It bars schools from engaging in academic relationships with Chinese schools; prohibits faculty and staff strikes; and bans some mandated diversity, equity, and inclusion training, among other changes. “The full impact of the bill depends entirely on how the divisive concepts are interpreted and determined by individual students or members of the public,” the IUC’s analysis states.State Sen. Jerry Cirino, a Kirtland Republican who sponsored the bill, declined an interview. In a statement sent through a spokesman, he alleged the IUC’s cost estimates are “inflated in general” and nothing but a “smokescreen” for colleges’ general opposition to the bill. He declined to provide any cost estimate on SB83.“We also do not believe that revenues will suffer as a result of our pushing for true diversity of thought,” he said. Ohio Senate spokesman John Fortney added that protecting freedom of speech and diversity is a “priceless” aim.Clum denied any allegation of padding costs. She said the universities made an honest effort to analyze the bill to assist the LSC and noted that the analysis wasn’t publicly shared.

University of Washington researchers and postdocs strike now in fourth day - Approximately 2,400 postdocs and research scientists/engineers at the University of Washington have on been on strike since Wednesday. Similar to UW librarians who were poised to go on strike in January, postdocs and researchers are fighting for higher wages and benefits, as well as cost of living adjustments in Seattle, a city that has one of the highest costs of living in the United States. The strike was called by United Auto Workers Local 4121, which was formed after a campaign among the postdocs and researchers by the UAW in 2019. This section of university workers are salaried staff, generally all with graduate level education, and who provide vital services to the university including performing research alongside professors and students, as well as maintaining and operating laboratories, machine shops and numerous other facilities at the institution. At the same time, they are not able to afford to live in the city. A postdoc’s starting salary is just under $54,000 a year, and only exceeds $60,000 after five years of work, about $30 an hour. In contrast, a living wage in Seattle is somewhere between $40 and $60 an hour, depending on the neighborhood. Moreover, these workers often have a great deal of student loan debt; a master’s degree on average costs $80,000. One of the key triggers for the strike is that as of the beginning of this year, the Washington State Department of Labor and Industries mandated that salaried employees who are overtime-exempt make at least $65,484 annually. According to an article in Science, UW President Ana Mari Cauce argued that this is not financially feasible. While they complied with the law at that time for some post docs and researchers, those whose pay is funded by fellowships did not see raises.

Biden vetoes measure overturning student loan forgiveness plan -President Biden has vetoed a measure that would have overturned his student debt relief plan, leaving the fate of the program in the hands of the Supreme Court. “Congressional Republicans led an effort to pass a bill blocking my Administration’s plan to provide up to $20,000 in student debt relief to working and middle class Americans,” Biden said in a tweet Wednesday. “I won’t back down on helping hardworking folks.” “Let me make something really clear, I’m never going to apologize for helping working- and middle-class Americans as they recover from this pandemic, never,” Biden said. The president’s proposal, which has been a target of Republicans since he first unveiled it, would impact 40 million borrowers, providing $10,000 in loan forgiveness to those making less than $125,000 annually and $20,000 in forgiveness for Pell Grants recipients. A two-thirds majority vote in both the House and the Senate would be required to override Biden’s veto, a threshold opponents of Biden’s effort cannot reach. In a statement Wednesday, Biden said he vetoed the solution because he is “committed to continuing to make college affordable and providing this critical relief to borrowers as they work to recover from a once-in-a-century pandemic.” The measure to block the plan passed the Senate this month in a 52-46 vote and cleared the GOP-majority House in a party-line vote, with two Democrats joining Republicans. In the Senate, Democratic Sens. Jon Tester (Mont.) and Joe Manchin (W.Va.) and Independent Sen. Kyrsten Sinema (Ariz.) joined Republicans in voting to nix Biden’s proposal. The measure was brought up as a joint resolution under the Congressional Review Act (CRA), which allows Congress to nullify newly-placed rules and regulations. Such measures are not subject to the filibuster, so Democrats in the Senate could not block the measure, and a supermajority of 60 votes was not required to advance it. The Supreme Court is still considering the plan, but the conservative majority is expected to strike it down. Justices displayed skepticism during February oral arguments that the Biden administration has the power to forgive up to $20,000 in student loans.

250,000 Floridians Get Kicked Off Medicaid as DeSantis Rakes in Big Donor Cash -- Hundreds of thousands of poor Floridians have been kicked off Medicaid in recent weeks as their Republican governor, Ron DeSantis, travels the country for his 2024 presidential bid and rakes in campaign cash from big donors. Florida is among the states that have begun unwinding pandemic-era rules barring states from removing people from Medicaid during the public health emergency. Late last year, Congress reached a bipartisan deal to end the so-called continuous coverage requirements, opening the door to a massive purge of the lifesaving healthcare program.A dozen states have released early data on the number of people removed from Medicaid as they restart eligibility checks, a cumbersome process that many people fail to navigate.So far, the statistics are alarming: More than 600,000 people across the U.S. have been stripped of Medicaid coverage since April, according to aKFF Health Newsanalysis of the available data, and "the vast majority were removed from state rolls for not completing paperwork" rather than confirmed ineligibility.Nearly 250,000 people who have been booted from Medicaid live in Florida, whose governor is a longtime opponent of public healthcare programs. As HuffPost's Jonathan Cohn wrote Sunday, DeSantis "has refused to support the ACA's Medicaid expansion for the state, which is the biggest reason that more than 12% of Floridians don't have health insurance.""That's the fourth-highest rate in the country," Cohn noted. But DeSantis, who has said he wants to "make America Florida," appears unmoved by the staggering number of people losing Medicaid in his state as he hits the campaign trail. The governor relied heavily on large contributors to bring in more than $8 million during the first 24 hours of his presidential bid.

As Fewer MDs Practice Rural Primary Care, a Different Type of Doctor Helps Take Up the Slack - Broad swaths of rural America don’t have enough primary care physicians, partly because many medical doctors prefer to work in highly paid specialty positions in cities. In many small towns, osteopathic doctors like de Regnier are helping fill the gap.Osteopathic physicians, commonly known as DOs, go to separate medical schools from medical doctors, known as MDs. Their courses include lessons on how to physically manipulate the body to ease discomfort. But their training is otherwise comparable, leaders in both wings of the profession say.Both types of doctors are licensed to practice the full range of medicine, and many patients would find little difference between them aside from the initials listed after their names.DOs are still a minority among U.S. physicians, but their ranks are surging. From 1990 to 2022, their numbers more than quadrupled, from fewer than 25,000 to over 110,000, according to the Federation of State Medical Boards. In that same period, the number of MDs rose 91%, from about 490,000 to 934,000.Over half of DOs work in primary care, which includes family medicine, internal medicine, and pediatrics. By contrast, more than two-thirds of MDs work in other medical specialties.The number of osteopathic medical schools in the U.S. has more than doubled since 2000, to 40, and many of the new ones are in relatively rural states, including Idaho, Oklahoma, and Arkansas. School leaders say their locations and teaching methods help explain why many graduates wind up filling primary care jobs in smaller towns.

96% of US blood donors had SARS-CoV-2 antibodies in 2022, CDC reports - By third quarter 2022, an estimated 96.4% of US blood donors had antibodies against COVID-19 from a previous infection or vaccination, including 22.6% from infection alone and 26.1% from vaccination alone, with 47.7% having both (hybrid immunity), according to a study published today in Morbidity and Mortality Weekly Report.Led by researchers from the Centers for Disease Control and Prevention (CDC), the study involved antibody testing of blood samples from 72,748 donors aged 16 and older collected from April to June 2021.From April to June 2021, an estimated 68.4% of blood donors had SARS-CoV-2 antibodies from previous infection or vaccination, including 47.5% from vaccination alone, 12.0% from infection alone, and 8.9% from both. From January to March 2022, 93.5% of donors had antibodies from previous infection or vaccination, including 39.0% from vaccination alone, 20.5% from infection alone, and 34.1% from both.During July to September 2022, 96.4% of participants had antibodies from previous infection or vaccination, including 26.1% from vaccination alone, 22.6% from infection alone, and 47.7% from both. From July to September 2022, the prevalence of infection-induced immunity was 85.7% among unvaccinated participants and 64.3% among their vaccinated peers.From July to September 2022, donors aged 65 years and older had the lowest prevalence of hybrid immunity (36.9%), and those aged 16 to 29 years had the highest (59.6%). From January through June 2022, COVID-19 incidence among unvaccinated participants was 21.7%, compared with 13.3% among the vaccinated. And from April to September 2022, the incidence among unvaccinated donors was 28.3%, compared with 22.9% among their vaccinated peers.The incidence of first COVID-19 infections was higher among younger than older participants. "Lower prevalences of infection-induced and hybrid immunity could further increase the risk for severe disease in this group, highlighting the importance for adults aged ≥65 years to stay up to date with COVID-19 vaccination and have easy access to antiviral medications," the researchers wrote.

Having a heart attack in early COVID-19 lockdown tied to lower life expectancy -- New research from Spain and the United Kingdom shows patients who suffered heart attacks during the initial COVID-19 lockdowns can expect to live up to 2 years less than those who had heart attacks before the pandemic, likely because they were limited in accessing life-saving treatments quickly.The findings are presented in the European Heart Journal - Quality of Care and Clinical Outcomes.To assess the impact on healthcare costs and life expectancy, the authors created a model to compare outcomes from STEMIs (ST-elevation myocardial infractions) seen in patients during the first month of COVID-19 lockdowns with those who had a heart attack at the same time in the previous year.They estimated that 77% of prepandemic STEMI patients in the United Kingdom were hospitalized during the prior month, compared with 44% during lockdown. The equivalent rates for Spain were 74% and 57%. Patients likely avoided going to a hospital during a STEMI because of fear of contracting a COVID-19 infection and because of limited health services. In total, UK STEMI patients were predicted to lose an average of 1.55 life-years and 1.17 QALYs (quality-adjusted life-years). In Spain the model predicted STEMI patients during the lockdown would survive 2.03 years less than pre-pandemic patients. Moreover, the delays in care were predicted to cost both countries more money in health services."The findings illustrate the repercussions of delayed or missed care," said lead study author William Wijns, PhD, of the University of Galway, Ireland, in a press release from the European Society of Cardiology, which publishes the journal. "Patients and societies will pay the price of reduced heart attack treatment during just one month of lockdown for years to come.

XBB.1.16 Updated Risk Assessment, 05 June 2023 -WHO (pdf)XBB.1.16 was first reported on 09 January 2023, designated as a Variant Under Monitoring (VUM) on 22 March 2023, and designated as a Variant of Interest (VOI) on 17 April 2023. XBB.1.16 is a descendent lineage of XBB, a recombinant of two BA.2 descendent lineages. XBB.1.16 has a similar genetic profile as XBB.1.5, with the additional E180V and K478R amino acid mutations in the spike protein compared to their parent XBB.1 lineage. As of 5 June 2023, 19 847 sequences of the Omicron XBB.1.16 variant have been made available from 66 countries. A majority of the XBB.1.16 sequences are from India (40.7%, 8086 sequences). The other countries with at least 100 sequences include the United States of America (10.9%, 2172 sequences), Australia (6.5%, 1291 sequences), China (6.1%, 1214 sequences), Canada (5.6%, 1104 sequences), Singapore (5.6%, 1118 sequences), Japan (4.5%, 890 sequences), South Korea (4.3%, 846 sequences), United Kingdom (3.0%, 595 sequences), Thailand (1.5%, 307 sequences), Malaysia (1.5%, 291 sequences), Sweden (1.3%, 261 sequences), Austria (0.9%, 176 sequences), Indonesia (0.7%, 140 sequences), Brunei (0.6%, 112 sequences) and Vietnam (0.6%, 115 sequences). Globally, there has been a weekly rise in the prevalence of XBB.1.16. During epidemiological week 20 (15 to 21 May), the global prevalence of XBB.1.16 was 16.8%, an increase from 4 weeks prior (epidemiological week 16, 17 to 23 April 2023), when the global prevalence was 10.2%. The global risk assessment for XBB.1.16 is comparable to the other currently co-circulating XBB variants with available evidence (see risk assessment table below). While growth advantage and immune escape properties have been observed in different countries and immune backgrounds, no changes in severity have been reported in countries where XBB.1.16 is reported to be circulating. Taken together, available information does not suggest that XBB.1.16 has additional public health risk relative to the other currently co-circulating Omicron descendent lineages. However, XBB.1.16 may continue to dominate in some countries and cause a rise in case incidence due to its growth advantage and immune escape characteristics

The Changing Trajectory of Covid-19 and How Immunity is Evolving with It - Abstract: The dynamic of the virus-host interaction is subject to constant evolution which makes it difficult to predict when the SARS-CoV-2 pandemic will become endemic. Vaccines in conjunction with efforts around masking and social distancing have reduced SARS-CoV-2 infection rates, however, there are still significant challenges to contend with before the pandemic shifts to endemic, such as the coronavirus acquiring mutations that allow the virus to dodge the immunity acquired by hosts. The continued emergence of variants and sub-variants poses a significant hurdle to reaching endemicity. This underscores the importance of continued public health measures to control SARS-CoV-2 transmission and the need to develop better second-generation vaccines and effective treatments that would tackle current and future variants. We hypothesize that the hosts’ immunity to the virus is also evolving, which is likely to abet the process of reaching endemicity.

Getting COVID while pregnant is still dangerous, doctors warn --Life has largely gone back to normal in the three years since the COVID-19 pandemic began. Social distancing is no longer a thing, and most people don’t wear masks even in crowded indoor settings. While the pandemic seems to be in the rearview mirror, experts say there’s at least one population that needs to be mindful of their COVID risk: pregnant women.The American College of Obstetricians and Gynecologists is warning about the risks of COVID for pregnant women, noting that “pregnant and postpartum women have a higher risk for more severe illness from COVID-19 than non-pregnant women.” The Centers for Disease Control and Prevention also states that “if you are pregnant or were recently pregnant, you are more likely to get very sick from COVID-19 compared to people who are not pregnant.”But most of the world has moved on from the pandemic, which raises a big question: How concerned should pregnant women be about this? Experts say they should at least be aware there’s a risk.“Pregnant women still need to have COVID-19 on their radars,” women’s health specialist Dr. Jennifer Wider tells Yahoo Life. “Pregnancy causes changes in the body that can make a person more vulnerable to respiratory viruses, and pregnant women have a higher chance of severe disease that can put the mom and developing baby at risk.”Dr. Thomas Russo, a specialist in infectious diseases at the University at Buffalo in New York, agrees: “We have less COVID now, but it remains a more lethal disease than influenza, particularly in high-risk groups. Pregnant women fall into that category. The data strongly shows that pregnant women are at risk for more severe disease and serious outcomes for their babies.”It’s entirely possible to get COVID-19 while you’re pregnant and be just fine, Dr. William Schaffner, a professor at the Vanderbilt University School of Medicine, tells Yahoo Life. “But it can also lead to serious complications, including premature delivery,” he says.But why is COVID so dangerous for expectant moms? Here’s what you need to know.

Is There a Covid Wastewater Spike in New York City? -- by Lambert Strether -- When I hear “uptick,” I think, from bitter experience and with the scientists on the right, “exponential growth.” So I sat up when I saw stories coming across my feed that said there was an increase in Covid[2] wastewater detected in New York City (NYC). I always keep a watchful eye on NYC, not least because it has form: New York City was the epicenter of the first 2020 wave [3], which is reasonable, given its continued status as a global entrepôt. (Not only that, we know now that Omicron could have been brewed in New York, not South Africa.) But what about the instant case? Does wastewater data show that there is an increase (“rising,” “uptick,” “rebound”) in Covid in NYC? First, I will look at the press coverage. Then, I will look at the data, and a critique of that data, and briefly conclude.Here is a list of the headlines:

• June 1: High concentrations of COVID detected at all 14 New York City wastewater treatment plants CBS New York. This story doesn’t give any sourcing for the data at all. It does, however have this graphic: So everybody retweets the story with the graphic, and this minimizer quote:[P]ublic health officials say it’s too early to know if it’s the start of a full-blown COVID wave.
• June 1: Is COVID back in NYC? Wastewater surveillance shows virus is rising Gothamist. Gothamist actually broke the story, and it’s the pick of the litter. Gothamist gives the source of the data: It’s from the NYS Wastewater Surveillance Network. (NYWSN). They also interviewed the dashboard maintainer:When it comes to SAR-CoV-2, “we would expect New York City to potentially go first,” said Dr. David Larsen, a Syracuse University professor who runs the New York state wastewater surveillance network dashboard“We look at wastewater data really over time,” said NYC health commissioner Dr. Ashwin Vasan. “We need to look at it a little bit over longer time periods to draw any important inference.”“It’s less about worry and more about preparation. COVID is here. It’s not going anywhere. We’re living with it,” Vasan said. “We have shown that we can start to regain a sense of normalcy and rebuild our city even with COVID still circulating.”Gothamist is also points out that wastewater testing is our only reliable proxy for the spread of infection, since testing has been eliminated (or privatized. At an average of $45 a pop!)
• June 1: Uptick in COVID-19 Found in NY Wastewater. Here’s What It Could Mean NBC New York. NBC gives the dashboard and cites to Gothamist. And Gothamist’s minimizing quote from Vasan!
• June 1: NYC Wastewater Suggests COVID-19 Rebound: Could This Signify A New Wave? Medical Daily. Medical Daily cites to Gothamist, links NYWSN, and uses Vasan’s minimizing quote. They also undercut wastewater testing:Meanwhile, Dr. Bruce Y. Lee, a professor at the CUNY School of Public Health, told Gothamist that wastewater data only gives a general idea of the virus spread in the community. It does not provide a much clearer picture than lab testing data.Right, but the prospect of using lab testing data is now zero, which one would assume [hollow laughter] that a professor of public health would know.
• June 2: High concentrations of COVID detected at all 14 New York City wastewater treatment plants CBS New York. Same as June 1, and just as bad.
• June 2: COVID cases could be rising in NYC based on wastewater testing data Scripps. Does not cite to Gothamist, links to NYWSN, no quote from Vasan, quotes an exponentialist (!): Infectious disease experts say trends are what stands out in wastewater detection for contaminants and other infectious properties. While the “absolute number might be debatable, that trend is always something that makes” experts pay attention, Dr. Peter Chin-Hong, an infectious diseases specialist, told ABC News.

I conclude that there is in fact a Covid uptick in NYC. So, in a massive self-own, I’ve got to throw a flag on a Betteridge’s Law violation. As a confirmed exponentialist, if I were in NYC, I’d assume the worst. After all, how hard is it to mask up? And shpritz your Betadine or Enovid or whatever? Not hard at all. I also conclude that the whole “personal risk assessment” schtick is demented. If this is what I have to do, to figure out if Covid is really increasing in NYC or not, nobody normal is doing to do it, and in fact nobody normal should have to (it’s just the sort of homework that PMCers like that sociopath Bob Wachter love. Who needs it?). I would argue that your personal protocol should already be strong enough to deal with an uptick, or even a wave. The time to change your protocol is not when data changes, because the data is partial, certainly gamed (again, CDC’s infamous “green map”), might be lagging, might not be granular enough for your location, and might even be bad or non-existent.

US COVID markers decline amid XBB subvariant shifts -The measures that federal health officials use to track COVID patterns continue to decline, as multiple Omicron XBB subvariants continue to erode the dominance of XBB.1.5.. The Centers for Disease Control and Prevention (CDC) said inupdates yesterday that both of its main measures for tracking virus trends declined: The hospital admission rate for COVID declined 6.2% over the past week, and Texas is the only state that has a few counties in the red zone. Deaths from the virus dropped 14.3% over the past week.Early indicators also declined, including test positivity, which nationally is at 4.2%. So far, there are no major differences in test positivity among the US regions. Emergency department visits for COVID declined 1.4% compared to the week before. And over the past 7 days, only a few wastewater testing locations showed virus levels in the high range.The CDC also posted its latest variant proportion estimates, which show that the level of XBB.1.5 has declined from 54.4% to 39.9%. A group of other Omicron XBB subvariants continue to gain ground, including XBB.1.16, XBB.1.9.1, XBB.1.16.1, XBB.1.9.2, and XBB.2.3.Federal health officials are closely watching the variant shifts, especially ahead of a Food and Drug Administration (FDA) vaccine advisory committee meeting on Jun 15 to select the strains to include in COVID vaccines for fall immunization.

Study: Southern US hit hardest with mental health concerns during pandemic --A study from researchers at the University of Kansas shows Southern states may have carried the brunt of mental health troubles during the COVID-19 pandemic, with people in that region most consistently worried about finances throughout COVID-19 lockdowns and the emergence of new strains of the virus. The findings were published yesterday in PLOS One.The study focused on rates of anxiety, depression, and financial worries as stand-ins for mental health during the pandemic and relied on survey repossess gathered via the Delphi Group at Carnegie Mellon University. It also revealed more angst in Republican states later in the pandemic.For the daily voluntary survey, Facebook users could respond starting on September 8, 2020, through March 2, 2021, and in a second period from March 2, 2021, to January 10, 2022.In both timeframes, the South had the highest percentages of people worried about finances. During the early pandemic, Northeastern residents reported the most anxiety, but the later period saw more anxiety in the South."During the second wave, we see that the southern states consistently had the highest average correlation values for feeling anxious, feeling depressed, and worried about finance," the authors wrote."Increase in feeling anxious and feeling depressed in the southern states overlapped with the increase in COVID-19 related cases, deaths, and hospitalizations when the Delta variant was spreading rapidly," the authors noted.During the rise of the Delta variant, some states began to enact COVID restrictions that had been lifted. The uncertainty likely contributed to mental distress, the authors said."The United States' decision to opt for individual state policies led to conflicting information from several state policies, and mismanagement of vaccines rolled out, leading to the rise of COVID-19 incidence report, which coincided with an association of increased feelings of anxiety," study author Raul Saenz-Escarcega said in a University of Kansas press release."Although there was government intervention in the form of economic relief programs to curb financial worries, coverage of the delta variant emerging saw a positive association of anxiety across the states."

Fatigue can lower long-COVID patients' quality of life more than some cancers -- Long-COVID fatigue can diminish quality of life more than some cancers, suggests an observational study published yesterday in BMJ Open.University of Exeter researchers led the study of self-reported long-COVID symptoms and quality of life among 3,754 adults registered to complete questionnaires on the Living with Covid Recovery app from November 30, 2020, to March 23, 2022.Participants were aged 18 to 65, 71% were women, 89% were White, and all still had COVID-19 symptoms at least 3 months after diagnosis. All were patients at 1 of 31 long-COVID clinics in England and Wales.A total of 51% of participants said they lost at least 1 day of work in the previous month, and 20% reported not being able to work at all. Average Work and Social Adjustment Scale (WSAS) score at baseline was 21, with 53% scoring 20 or more, indicating moderately severe functional impairment.Risk factors tied to WSAS scores of at least 20 were high levels of fatigue, depression, and brain fog, with fatigue contributing the most to the high score.Many long-COVID patients were seriously ill, and their average fatigue scores were similar to or worse than those of people with cancer-related anemia (low counts of oxygen-carrying red blood cells) or severe kidney disease. Their health-related quality of life scores were also lower than those of people with advanced metastatic cancers, such as stage 4 lung cancer."Our results have found that long Covid can have a devastating effect on the lives of patients—with fatigue having the biggest impact on everything from social activities to work, chores, and maintaining close relationships," co-lead author Henry Goodfellow, PhD, of University College London (UCL), said in a UCLnews release.He added that the study shows that fatigue should be a focus of clinical care and the design of rehabilitation services. "Post-Covid assessment services should consider focusing on assessing and treating fatigue to maximise the recovery and return to work for sufferers of long Covid," he said.Senior author William Henley, PhD, of the University of Exeter, called long COVID an invisible condition. "Shockingly, our research has revealed that long Covid can leave people with worse fatigue and quality of life than some cancers, yet the support and understanding is not at the same level," he said in the release."We urgently need more research to enable the development of evidence-based services to support people trying to manage this debilitating new condition.

After UK lifted COVID test mandates at admission, hospital cases outpaced community spread - After Scotland and England dropped requiring hospitals to test all admitted patients for COVID-19 in 2022, hospital-onset cases outstripped those in the community, according to a research letter published today in JAMA Internal Medicine. Harvard Medical School researchers conducted a time-series analysis using weekly hospital-onset COVID-19 case counts from Public Health Scotland and the National Health Service England from July 1, 2021, to December 16, 2022. Community-onset cases were estimated using near-weekly household data from the UK Office for National Statistics COVID-19 Infection Survey for the same period. England and Scotland stopped mandating COVID-19 testing of all admitted hospital patients beginning August 31 and September 28, 2022, respectively. "Since two-thirds of SARS-CoV-2 transmissions are from people with asymptomatic or presymptomatic infections, transmission risk between patients sharing rooms is high, and universal medical masks can reduce but not eliminate transmission," the study authors wrote. "However, the utility of universal admission testing has been questioned due to resource constraints, care delays, and sparse data demonstrating it reduces nosocomial infections." During the study period, officials confirmed 46,517 COVID-related admissions (34,183 community-onset and 2,334 hospital-onset) in Scotland, and 518,379 (398,264 community-onset, 120,115 hospital-onset) cases in England. Average weekly new hospital-onset infections per 1,000 community infections in Scotland rose from 0.78 during the SARS-CoV-2 Delta variant surge to 0.99 during the Omicron wave to 1.64 after mandatory admission testing ended. The immediate level change after universal admission testing stopped was statistically significant (41% relative increase) but not after the transition from Delta to Omicron predominance. Similarly, during the same periods in England, average weekly new hospital-onset cases per 1,000 community infections climbed from 0.64 during Delta to 1.00 amid Omicron to 1.39 after the testing requirement ended. The immediate level change after universal admission testing ended was statistically significant (26% relative increase) but not after Omicron became dominant over Delta.

Study finds 27% rate of long COVID in infected health workers - A new case-control study of Brazilian healthcare workers (HCWs) suggests as many as 27% developed long COVID after infection, and multiple infections raised the risk. The findings were published today in Infection Control & Hospital Epidemiology. Estimates of the prevalence of long COVID, defined by the Centers for Disease Control and Prevention as new, returning, or lasting symptoms persisting 4 or more weeks after initial COVID-19 infection vary, with some studies showing as many as 43% of infected people will have some lingering symptoms 1 month after COVID-19 confirmation. Because HCWs have occupational exposure to COVID-19 and were vulnerable to infections the pre-vaccination era of the pandemic, they may be uniquely primed for developing long COVID. The study is based on confirmed symptomatic COVID-19 HCWs who worked in a Brazilian healthcare system in Sao Paulo from March 1, 2020, to July 15, 2022. Symptoms persisting longer than 4 weeks after acute infection were assessed during 180 days of follow-up. Researchers included 18,340 HCWs in the study, of whom 7,051 (38.4%) had at least one laboratory-confirmed SARS-CoV-2 infection during the study period. Out of 7,051 HCWs diagnosed as having COVID-19, 1,933 (27.4%) who developed long COVID were compared to 5,118 (72.6%) who had a COVID-19–positive test but did not experience any symptoms at week 4. Among HCWs with long COVID, just over half (51.8%) reported three or more symptoms 4 weeks after infection. The most common symptoms were headache (53.4%), followed by muscle or joint pain (46.6%) and nasal congestion (45.1%). Multiple COVID infections were predictive of developing long COVID; Overall, 887 HCWs (12.6%) had two or more SARS-CoV-2 infections, including 17.8% of cases and 10.6% of controls. Other predictive factors for developing long COVID were female sex (odds ratio [OR], 1.21; 95% confidence interval [CI], 1.05 to 1.39), and older age (OR, 1.01 per year of age; 95% CI, 1.00 to 1.02)

Study shows pandemic tied to lower confidence in vaccines in sub-Saharan Africa - Confidence in routine immunizations in eight sub-Saharan African countries has dropped during the past 2 years, along with the largest decline in vaccine uptake in the region in more than 30 years, according to new data published in Human Vaccines & Immunotherapeutics. The study based vaccine confidence on 17,187 individual interviews conducted from 2020 to 2022 in the Democratic Republic of the Congo (DRC), Ivory Coast, Kenya, Niger, Nigeria, Senegal, South Africa, and Uganda. In addition to being queried on COVID-19 vaccines, participants were asked seven questions pertaining to vaccine confidence, including whether they agree with statements such as, "Vaccines are important for all ages," "Vaccines are important for children," and "Vaccines are safe."The biggest declines in the belief "Vaccines are important for children" from 2020 to 2022 occurred in the DRC (20% decline), followed by Uganda (14%) and Nigeria (10.5%). Trust in the safety of COVID-19 vaccine did not fall during the study period, but in seven of the eight countries study participants said COVID-19 vaccines were less important in 2022 than in 2020.Previously, declines in immunizations in Africa during the pandemic have been thought to be due to health service disruption. The interviews now also show that attitudes toward vaccines wavered.

COVID cases trend down in all world regions --Except for a few hot spots, COVID-19 activity over the past month declined in all six world regions, the World Health Organization (WHO) said in its weekly update today.The pattern follows several weeks of a mixed picture, which saw rising cases in some parts of the globe.Compared to the previous month, cases dropped 38% and deaths were down 47%, according to the WHO. The group included its usual caveat that cases are underestimated, owing to reduced testing and delays in reporting.Though two of the countries reporting rising cases—Australia and China—are both in the WHO's Western Pacific region, cases in the area declined 5% over the past 28 days.Australia's cases were up modestly, and with the onset of cooler weather in the Southern Hemisphere, the country is reporting rises of both COVID and flu. COVID-19 cases have doubled since March, and most people haven't had a COVID booster in more than 6 months, Australia's SBS News reported. Health officials are urging people get up to date with their COVID vaccine boosters and flu shots.In China, the government is no longer releasing weekly data, but health officials have said the country is in the midst of an XBB wave, which isn't expected to reach the level of the country's late-winter surge, theSouth China Morning Post reported today. Experts said, however, that many deaths could occur, given the country's large elderly population.UK health data firm Airfinity estimates that China's current wave could peak at 11 million cases a week some time in June.Elsewhere in the Western Pacific, the WHO said 13 of 35 reporting countries have noted increases over the past 4 weeks, with the highest proportional increases coming from Mongolia, Cambodia, and Laos.The WHO's Africa region had reported a slight rise in earlier weeks, and while cases are declining, a few countries still report rises, including Mauritius and Zimbabwe. In a related development, Ugandan President Yoweri Museveni, age 78, has tested positive for COVID and is continuing his duties while getting treatment,Reuters reported.In its update on Omicron variants, the WHO said the proportion of XBB.1.5 subvariants is steadily decreasing as a constellation of newer ones rise in patterns that vary by world region.From the middle of April to the middle of May, the proportion of XBB.1.5 declined from 46.2% to 30.3% of sequences. The other variant of interest, XBB.1.16, rose from 10.2% to 16.8% over the past month.Meanwhile, levels of four variants under monitoring rose: XBB, XBB.1.9.1, XBB.1.9.2, and XBB.2.3.Rising activity from some of the newer variants is coming with rises in hospitalizations and deaths in some countries, but at lower levels than earlier SARS-CoV-2 waves, the WHO said. Dominance varies by region, with XBB.1.5 most common in Africa, the Americas, and Europe, and XBB.1.16 is dominant in Southeast Asia. Elsewhere, XBB.1.9.1 is dominant in the Eastern Mediterranean region, and XBB.1.9.1 (22.7%) and XBB.1.5 (16.2%) make up the biggest proportion of viruses in the Western Pacific.

Ground beef suspected in Salmonella outbreak probe -- The Illinois Department of Public Health (IDPH), local departments, and federal health officials are investigating a Salmonella outbreak linked to ground beef, which has so far sickened 26 people in Illinois, with a few cases in other states.In a statement, the IDPH said the source of the ground beef hasn't been identified, but lab testing and other investigations are still under way. The US Department of Agriculture (USDA)list of outbreak investigations notes an active investigation into a Salmonella Typhimurium outbreak with ground beef as the suspected source.The IDPH said illnesses have been reported from Chicago and six of the state's counties. Illness onsets range from Apr 25 to May 18. Some of the sick people said they ate undercooked ground beef.The IDPH reminded people that Salmonella can be found in a variety of foods, including beef, chicken, and pork. It urged consumers to follow four key food safety steps, including cooking ground beef to an internal temperature of at least 160°F.In other foodborne illness developments, the Centers for Disease Control and Prevention (CDC) yesterday said a Salmonella Infantis outbreak linked to certain types of Gold Medal flour is over.In its final report, the CDC reported 1 more cases, raising the total to 14 infections from 13 states. Three people were hospitalized, but no deaths were reported. The CDC said the true number of sick people is likely much higher, because many recover without medical care and aren't tested. The latest illness onset was May 2. Of eight people who were interviewed, seven said they eight raw dough or batter. Of six people who had flour brand information, all reported using Gold Medal flour. Investigators traced the source to a single production plant in Kansas City, Missouri, and the outbreak strain was identified in one of the samples from the facility. The CDC said, "Although this outbreak investigation has ended, CDC advises you to throw away or return any bags of recalled flour and to wash any containers used to store recalled flour with warm water and soap."

US hospital data show high death rate with Candida auris infections --An analysis of US hospitalizations linked to the multidrug-resistant fungal pathogen Candida auris found an estimated mortality rate of about one-third, researchers with the Centers for Disease Control and Prevention (CDC) reported yesterday in Emerging Infectious Diseases.Using a large US hospital database, the CDC researchers reviewed 192 C auris–associated hospitalizations at 42 hospitals from 2017 through 2022, including 38 C auris bloodstream infections (20%). The hospitalizations occurred primarily among older adults (median age, 68 years) who were mostly male (54%) and non-Hispanic White patients (60%).Underlying complications for patients with bloodstream and non-bloodstream C auris included sepsis (64%), diabetes (55%), chronic kidney disease (44%), and pneumonia (43%). Median hospitalization length was 13 days, and most hospitalizations (75.5%) involved an intensive care unit stay.The in-hospital mortality rate was 21%, and discharge locations included hospice (13%), skilled nursing facility (28%), and long-term acute care (15%). The overall estimated crude mortality rate was 34% (47% for bloodstream infections and 31% for non-bloodstream infections). The study authors say the findings support previous smaller studies showing that C auris infections occur most commonly in patients with complex medical conditions."These findings underscore the continued need for public health surveillance and C auris containment efforts," they wrote. Recently published surveillance data from the CDC show that clinical C auris cases in the United States rose by 59% in 2020 and 95% and 2021, a spike that CDC officials say is partly linked to COVID-19 pandemic-related strains on the healthcare system.

Study shows previously unknown antibiotic resistance widespread among bacteria - Genes that make bacteria resistant to antibiotics are much more widespread in our environment than was previously realized. A new study published in Microbiome by researchers from Chalmers University of Technology and the University of Gothenburg in Sweden shows that bacteria in almost all environments carry resistance genes, with a risk of them spreading and aggravating the problem of bacterial infections that are untreatable with antibiotics. "We have identified new resistance genes in places where they have remained undetected until now. These genes can constitute an overlooked threat to human health," says Erik Kristiansson, a professor in the Department of Mathematical Sciences. According to the World Health Organization (WHO), antibiotic resistance is one of the greatest threats to global health. When bacteria become resistant to antibiotics, it becomes difficult or impossible to treat illnesses such as pneumonia, wound infections, tuberculosis and urinary tract infections. According to the UN Interagency Coordination Group on Antimicrobial Resistance (IACG) 700,000 people die each year from infections caused by antibiotic-resistant bacteria. The genes that make bacteria resistant have long been studied, but the focus has traditionally been on identifying those resistance genes that are already prevalent in pathogenic bacteria. Instead, in the new study from Sweden, researchers have looked at large quantities of DNA sequences from bacteria to analyze new forms of resistance genes in order to understand how common they are. They have traced the genes in thousands of different bacterial samples from different environments, in and on people, in the soil and from sewage treatment plants. The study analyzed 630 billion DNA sequences in total. The study showed that the new antibiotic resistance genes are present in bacteria in almost all environments. This also includes our microbiomes—the genes of the bacteria found in and on people—and, more alarmingly, pathogenic bacteria, which can lead to more infections that are difficult to treat. The researchers found that resistance genes in bacteria that live on and in humans and in the environment were ten times more abundant than those previously known. And of the resistance genes found in bacteria in the human microbiome, 75% were not previously known at all.

PAHO warns of respiratory virus rises in South America -- With respiratory virus levels rising to prepandemic levels and increasing hospitalizations in children younger than 2 years, the Pan American Health Organization (PAHO) and World Health Organization (WHO) yesterday urged countries to strengthen their measures to tackle flu, respiratory syncytial virus (RSV), and COVID-19 and to take measures to avoid severe outcomes. In an epidemiologic alert, PAHO said flu activity in the Americas' southern region has increased markedly over the past month, mainly due to the 2009 H1N1 flu virus. RSV activity has also risen and is at medium levels, and so far COVID-19 levels remain low.The situation varies in the southern region. For example, Brazil has seen significant growth in RSV activity and hospitalizations since April, especially in kids younger than 2. Eleven child deaths from severe acute respiratory infections, mainly involving babies, have been reported since May 13 from children's hospital in Macapa, located in the north, according to O Globo, a Brazilian newspaper.Argentina's flu season began early, and RSV cases are running 56% higher than in 2019, when the country experienced its most cases during the same period. Chile's flu season also started earlier than usual and is moderately intense, alongside a spike in RSV activity that has exceeded 2022 levels.The Andean region of the Americas, which includes Bolivia, Peru, and Venezuela, also reported elevated flu and RSV activity, with flu accounting for more than half of cases in younger adults, followed by RSV in children younger than 5 years.The two viruses also rose, but to a lesser degree, in Central America and the Caribbean.

Researchers identify genetic makeup of new strains of West Nile - Researchers at Connecticut Veterinary Medical Diagnostic Laboratory (CVMDL) located in UConn's College of Agriculture, Health and Natural Resources identified the genetic makeup of strains of West Nile virus found in an alpaca and a crow. The findings were published in Frontiers in Veterinary Science. In 2021, eight cases of West Nile virus were brought to the CVMDL for diagnosis—seven birds, both domestic and wild—and one alpaca. Of the eight cases, the alpaca from Massachusetts and a crow from Connecticut had the highest amount of virus in their systems at the time of diagnosis. Focusing on these two cases, the researchers were interested in seeing if there were genetic differences between the viruses because they occurred in different species in different states. After sequencing the complete genomes of the viruses, the researchers compared them to existing data. They found that the West Nile virus in the crow was similar to the virus identified in a mosquito and birds in New York between 2007 and 2013. The virus found in the alpaca resembled West Nile viruses found in mosquitos in New York, Texas, and Arizona between 2012 and 2016. "[These findings] show the variety of the strains that are circulating and that can really alter what we see in the populations of what mosquitoes are dragging around in different areas," Tocco says. This information can help scientists predict where different strains of the virus may appear, when considering how mosquitoes and birds move around the country. The researchers concluded that differences in the genetic makeup of these viruses suggests that vector-host feeding preferences are likely driving viral transmission. Different mosquito species prefer to feed on different animal hosts. This leads to multiple kinds of animals becoming infected with West Nile viruses.phys.

Quick takes: Third fungal meningitis death, NJ mpox cases, more nations hit with high-path avian flu | CIDRAP

• Another death has been reported in the fungal meningitis outbreak linked to spinal anesthesia in people from the United States who underwent in a The latest fatality brings the total fatality count to three, according to an update from the Centers for Disease Control and Prevention (CDC). Of 185 people from the United States who underwent procedures at the clinics, 14 suspected cases have been reported, along with 11 probable infections. Two cases are listed as confirmed, meaning fungus has been isolated from patients' spinal tap samples. Of the deaths, two are among the probable cases and one involves a confirmed case.
• New Jersey's Department of Health reported two new mpox cases, its first since February, according to astatement late last week. It reminded residents to be aware of their risks and symptoms and that vaccination provides the best protection against serious illness. Health officials in other jurisdictions and countries have warned about an uptick in cases linked to summer festivals and gatherings.
• The US Department of Agriculture (USDA) Animal and Plant Health Inspection Service (APHIS) has addedGabon, Guinea, and Moldova to its long list of countries affected by highly pathogenic avian flu outbreaks in poultry. The step comes with restrictions on the import of avian products that come from or through those countries.

Quick takes: Tanzania's Marburg outbreak ends, more polio in Afghanistan, cholera in Africa | CIDRAP

• Tanzania today declared the end of its first Marburg virus outbreak, which was declared on Mar 21 and sickened nine people, six of them fatally. The cases were limited to the Kagera region, located in the country's northwest. The last patient tested negative for a second time on Apr 19, which started a 42-day countdown to the end of the outbreak. Matshidiso Moeti, MBBS, head of the World Health Organization (WHO) African regional office in a statement said quick actions from Tanzania's government and support from the WHO and its partners played key roles in ending the outbreak. In a statement today, WHO Director-General Tedros Adhanom Ghebreyesus said, "The outbreak in Equatorial Guinea is also expected to be declared over next week, if no further cases are detected."
• Afghanistan has reported a third wild poliovirus type 1 (WPV1) case for the year, putting it above the total of two reported for 2022, according to the latest update from the Global Polio Eradication Initiative (GPEI). The case from Nangarhar province was reported recently in the media, and a new media reporttoday noted a fourth WPV1 case, involving a 4-year-old boy from the same province with a May 16 paralysis onset. Elsewhere, the Central African Republic reported one more circulating vaccine-derived poliovirus type 2 (cVDPB2) case, in a patient from RS4 district, bringing the country's total for the year to seven.
• In an update on the global cholera situation yesterday, the WHO said no new countries have reported outbreaks since its last update on May 11, keeping the total at 24. It noted, however, that the geographic spread continues in the Horn of Africa, especially in the Mandera triangle where the Ethiopian, Kenyan, and Somalian borders meet. The agency said the global capacity to battle multiple outbreaks continues to feel strain, especially as countries manage multiple disease threats. The WHO said given those factors and the lack of vaccines and other resources, the global risk remains very high.

China reports another H5N6 avian flu infection --Hong Kong's Centre for Health Protection (CHP) today reported a H5N6 avian flu infection in a 54-year-old woman from Sichuan province on China's mainland. In a statement, the CHP said the woman is from Nanchong, and her symptoms began on May 19. She was admitted to the hospital on the same day and is listed in serious condition. An investigation found that he had been exposed to domestic poultry before she got sick.Her infection brings China's number of H5N6 infections since 2014 to 84. The H5N6 strain is known to circulate in poultry in some Asian countries, including China. So far, only China and Laos have reported human cases, which are often severe or fatal.

Preliminary evidence of anticoagulant rodenticide exposure in American kestrels in the Western US - American kestrels are a beloved raptor species experiencing a troubling decline, and our use of rodenticides is not helping. According to a new study published in the Journal of Raptor Research, adult kestrels sampled in and around the Salt Lake City metropolitan area showed high rates of exposure to five types of anticoagulant rodenticides. Brodifacoum, the most prevalent type of rodenticide found in sampled birds, is not only widely used on a global scale but is dangerous to many species of raptors. In their paper, "Preliminary Evidence of Anticoagulant Rodenticide Exposure in American Kestrels (Falco sparverius) in the Western United States," a team of authors showed high rates of exposure in sampled kestrels, with adults exhibiting more exposure than juveniles. This study is one of the first to assess rodenticide exposure in wild American kestrels, and underscores the importance of learning more about the specific impacts of rodenticides on the health of individual birds, how they are exposed, and if exposure causes population level effects.Raptors are bioindicators, meaning they shed light on the overall health of the ecosystems in which they reside. Understanding the impacts of rodenticide use on raptor populations is critically important. This study supports a growing body of evidence verifying that raptors are exposed to rodenticides on a global scale, and that kestrels may experience particularly high rates of exposure. Given evidence of decline for this charismatic species, and current knowledge gaps about the causes, further investigating this threat is crucial.

Oklahoma reports its first CWD case in a wild deer - The Oklahoma Department of Wildlife Conservation (ODWC) has reported the state's first case of chronic wasting disease (CWD) in a wild deer, prompting it to activate the next stage of its CWD response strategy.The white-tailed deer was found near Optima, in the Oklahoma Panhandle, after a Texas County landowner told the ODWC that it had been behaving abnormally. In response to a positive CWD test, the ODWC activated the next stage of its CWD response strategy, which it developed along with the Oklahoma Department of Agriculture, Food and Forestry."While this is unfortunate news, it is not unexpected since CWD has already been detected in every state that borders Oklahoma," Jerry Shaw, ODWC wildlife programs supervisor, said in an ODWC statement. "We will be working through our response plan to ensure we can monitor potential spread and keep our state's deer herd healthy."The ODWC has been monitoring hunter-harvested deer and elk, as well as road-killed deer, for CWD since 1999, processing tissue samples from more than 10,000 wild deer and elk.The ODWC said it will continue monitoring for CWD and release more information, including how deer and elk hunters can help with detection and mitigation, as hunting seasons approach. It will also distribute more guidelines or management plans, if necessary, to further protect Oklahoma's cervids (members of the deer family).In 1998, the ODWC confirmed CWD in a captive elk herd in Oklahoma County that had originally been imported from Montana.CWD is a fatal neurodegenerative disease caused by infectious prions, or misfolded proteins, that affects cervids such as deer, elk, and moose. The disease creates cavities in the brain that resemble those of sponges. While CWD isn't known to infect humans, some experts fear it could mimic bovine spongiform encephalopathy ("mad cow" disease) and one day jump to people.

'Too small and carefree': Endangered animals released into the wild may lack the match-fitness to evade predators -- Breeding threatened mammals in fenced, predator-free areas is a common conservation strategy in Australia. The method is designed to protect vulnerable species and breed animals for release into the wild. But our research—involving a cute, digging mammal known as a woylie—suggests the strategy may put animals at a distinct disadvantage once they're fending for themselves. We found animals bred in fenced conservation areas, known as "havens", lost traits they need to detect and escape predators. It's likely this made them less able to survive in the wild. This unintended downside could jeopardize the survival of endangered species such as woylies. It shows we must increase investment in managing wild populations of threatened species, and help animals in havens get accustomed to predators.

Changing wild animals' behavior could help save them—but is it ethical? - When large and warty cane toads were first brought to Australia nearly 100 years ago, they had a simple mission: to gobble up beetles and other pests in the sugarcane fields. Today, though, the toads have become an infamous example of a global problem: biocontrol initiatives gone wrong. The squat creatures have spread across the top half of the country, wreaking havoc on ecosystems. Cane toads are highly toxic, and consuming just one is generally lethal for predators like monitor lizards, freshwater crocodiles and the small, spotted marsupials called quolls. But what if you taught other animals not to eat the toads? Could you—and should you? Conservation behavior scientists are doing just that. One of the most exciting areas in this quickly evolving field is behavior-based management, in which an animal's behavior is encouraged, modified or manipulated in some way to achieve positive conservation outcomes. In Australia, scientists are working with Indigenous rangers to teach predators not to eat cane toads. Next door in New Zealand—or Aotearoa, in the Indigenous Māori language—researchers, including one of us, Catherine Price, have used fake scents to condition ferrets, hedgehogs and other predators to ignore endangered birds' eggs. Other behavior-based management efforts include re-teaching lost migratory routes to birds in North America, preparing captive animals for life in the wild in Colombia and using deterrents like colored flags to keep wildlife away from sites where they might conflict with humans. This research has significant potential to conserve threatened species and reduce animal deaths. However, modifying behavior may come at a cost to animals or the communities they live in. Working with colleagues, we have developed a framework to help researchers evaluate the ethical considerations of conservation behavior interventions against other options.

Norfolk Southern seeks to have lawsuits dismissed over derailment, toxic chemical spill in East Palestine, Ohio - Norfolk Southern has filed a motion in court to dismiss the mass class-action lawsuit that has been brought by residents of East Palestine, Ohio and surrounding communities over the damages caused by the February 3rd train derailment and release of toxic chemicals into the air, water and soil. The mass class-action lawsuit has consolidated more than 30 separate lawsuits brought by residents, property owners and businesses that were impacted by the derailment. In a motion filed on Friday with the US District Court in Youngstown, Ohio, Norfolk Southern made the absurd claim that they are not responsible for the derailment or obligated to pay for any of the damages caused to residents health, homes or businesses, because the first car to derail was not owned by the railroad company and that they did not construct the wheel bearing whose failure is believed to have caused the derailment. In the motion they write, “The first car to derail did not belong to Norfolk Southern. Nor did Norfolk Southern construct the wheel bearing that allegedly ‘overheated’ and ‘caused’ the train to derail.” The fact that the Norfolk Southern train had passed not one, but three hot-bearing detectors, the first over 40 miles before reaching East Palestine, or that each detector showed that the bearings were getting hotter and hotter, was ignored by the attorneys. This would be the same as a car owner arguing that the car’s manufacturer, and not themselves, were responsible for a crash caused by faulty brakes even though they had not gotten their brakes inspected and had ignored the car’s warning light. The Norfolk Southern filing makes three basic arguments for having the case dismissed. First, the railroad is seeking to get the case thrown out of court since the damages could run into the hundreds of millions, if not billions of dollars, as the suit covers people and businesses living and working within a 30 miles radius of the crash site, which would cover roughly half a million people. Additionally, the railroad argues that since they are regulated under federal law, they cannot be held responsible for accidents that happen on those railroads. In a sign that government regulations are closely written in such a way as the favor the massive railroad companies Norfolk Southern points out that the laws regulating the railroad industry explicitly exempt them from being sued in such cases. While this is in fact a gross exaggeration, it is the case that those suing a railroad have a much higher burden to face in court. Third, they claim that the suit does not provide enough details of the injuries suffered and the different levels of injuries faced by people who lived within a mile of the crash site and by those who live further out. Attorneys for the plaintiffs stated that while the company’s motion will likely be rejected, the fact that it has been submitted at all is an indication that the railroad will fight vigorously to limit their financial liability. Even if they lose at trial they will use these arguments in an appeal, to get any settlement reduced.

Industry knew about risks of PFAS ‘forever chemicals’ for decades before before push to restrict them, study says — Makers of PFAS, a class of chemicals used in everything from cookware to food containers and makeup, had evidence the substances were toxic as early as the 1970s and obscured the danger, according to a new study based on industry archives held at the University of California. Governments in Canada and the U.S. are now cracking down on per- and polyfluoroalkyl substances (PFAS), a class of more than 9,000 human-made chemicals produced since the 1940s. They have unique properties that make them heat-resistant, oil- and water-repellent and friction-resistant, and are found in products from cosmetics and take-out boxes to non-stick cookware and fire suppressants. Because they're hard to break down, contamination from the long-lived substances — sometimes called "forever chemicals" — is extensive all over North America."It's really very sad, actually, how people were harmed by this chemical while the industry knew — had documents that showed they knew — it was toxic," said Tracey Woodruff, professor of reproductive health and the environment at the University of California, San Francisco, and an author on the study published Thursday in Annals of Global Health.The study examined 39 internal industry documents currently held at the university's Chemical Industry Documents Library, dating from 1961 to 2006. The documents come from a lawyer who led a class action lawsuit in the early 2000s against chemical manufacturer DuPont on behalf of about 70,000 people in West Virginia and Ohio over exposure to PFOA, a form of PFAS. The internal industry documents came from the discovery process and were related to DuPont and 3M, two major PFAS manufacturers. The documents were given to the makers of a 2018 documentary film called The Devil We Know, which was about the health hazards of PFOA and its use in Teflon cookwear.Woodruff and her team's analysis found that the companies had evidence by the 1970s —decades before public health and government authorities turned their attention to the chemicals — that some PFAS were toxic to humans, based on lab reports and health impacts on employees, but downplayed those impacts in public messaging or obscured what they had found. "I think it really reinforces why we have to hold these industries accountable because they're clearly, as you read the documents, concerned about the profits for this chemical and not about the health of their employees nor of the public," Woodruff said.

Companies Knew the Dangers of PFAS ‘Forever Chemicals’—and Kept Them Secret — The female employees at the DuPont chemical company’s Washington Works plant in Parkersburg, W. Va., were not given much of an explanation in 1981 when they were all abruptly moved away from any part of the factory that produced a category of chemicals then known as C8. They certainly were not told about their eight recently pregnant coworkers who had worked with C8 and given birth that year—one of them to a baby with eye defects and just a single nostril; another to a baby who had eye and tear duct defects; and a third with C8 in its cord blood. For any employees with any doubts, the company took pains to offer reassurances that all was well. “During the period that C8 has been used at Washington Works,” a memo to the staff read, “there is no known evidence that our employees have been exposed to C8 at levels that pose adverse health effects. There is a dose level where almost every chemical, even water, becomes poisonous. [C8] has a lower toxicity, like table salt.” C8 is today defined as two chemicals—PFOA and PFOS—that are part of a class of more than 12,000 substances known collectively as PFAS, short for per- and polyfluoroalkyl substances. Also known as “forever chemicals” because that’s pretty much how long they linger in the environment, PFAS are used in thousands of products from textiles to nonstick pans to cosmetics to fire-fighting foam to food packaging, and more. The chemicals have been linked to a host of physical ills, including decreased fertility, high blood pressure in pregnant people, increased risk of certain cancers, developmental delays and low birthweight in children, hormonal disruption, high cholesterol, and reduced effectiveness of the immune system.These revelations of what the two companies knew about the harms of PFAS, and when, come as a result of an analysis of records on file at the University of California San Francisco’s (UCSF) Chemical Industry Documents Library. The documents, in turn, were the product of discovery in two lawsuits: 1998’sTennant vs. DuPont, in which the plaintiff complained that DuPont dumped more than 7,100 tons of PFOA-laced sludge onto his property; and 2002’s Leach vs. DuPont, a class action suit in which more than 80,000 West Virginia plaintiffs charged the company with contaminating the local water supply with PFOA and PFOS.

Senate bill on PFAS draws both support, critique from environmental, industry groups — Wisconsin Public Radio - Environmental, utility and industry groups showed both support and criticism for legislation addressing PFAS during a public hearing Monday. The Republican-authored Senate Bill 312 would provide a variety of grants to help municipalities test for PFAS and pay for related infrastructure upgrades. But the bill would also limit the authority of the Wisconsin Department of Natural Resources to test for PFAS and require remediation.Funding for the new grants would likely come from the $125 million approved by the Legislature's budget committee last month.Most of the speakers at the public hearing were supportive of legislative action to address PFAS contamination, which has been found in a growing number of communities statewide. PFAS, short for per- and polyfluoroalkyl substances, can be found in cookware, food wrappers and firefighting foam and don’t easily break down in the environment. Research shows high exposure to PFAS has been linked to kidney and testicular cancers, fertility issues, thyroid disease and reduced response to vaccines over time. But each person who testified raised different issues with the way the bill was written.Sara Walling, water and agriculture program director for environmental advocacy group Clean Wisconsin, expressed concern that the new restrictions would weaken strong environmental protections under the state's Hazardous Substance Spill Law."We won't make progress on this issue if for every step forward in the use of these proposed new grants, communities will move two steps back in adequately identifying contaminated properties, remediating those properties and if necessary, holding polluters accountable," she said.Rob Lee, staff attorney for Midwest Environmental Advocates, also cautioned lawmakers that the limitations could have unintended consequences in weakening the DNR's existing authority to address contamination. He said it's an important consideration, especially as the agency faces an increasing number of legal challenges.But Wisconsin Manufacturers & Commerce testified in favor of many of the restrictions and called for further limiting the DNR's authority in some cases.The business advocacy group called for cutting the six PFAS chemicals identified in the bill down to the two with federal standards, excluding any chemicals that have public health advisories or proposed standards that haven't gone through a full state or federal rulemaking process. WMC supported the bill's requirement for the DNR to get written permission from a landowner before doing water testing and called for expanding that requirement to whether the agency can publicly share the results of any tests.

Black and Hispanic communities more likely to have drinking water with PFAS— Black and Hispanic communities are disproportionately exposed to “forever chemicals” in their drinking water, according to a first-of-its-kind study from Harvard University that said 18 million Americans are exposed to PFAS levels that exceed limits proposed by the Environmental Protection Agency.PFAS or, per- and polyfluoroalkyl substances, are known as “forever chemicals” because they do not break down over time and can last indefinitely in the environment. They have been linked to certain types of cancer as well as other illnesses. The report is the first peer-reviewed study to examine the relationship between PFAS contamination and risk in communities of color. The research also found that location increases the likelihood of PFAS exposure for Black and Hispanic communities, since historic redlining and segregation often situated their neighborhoods near industrial sites, airports, and military facilities. The EPA announced new rules on PFAS in drinking water in March, after years of urging from activists and drinking water experts. The agency aims to finalize the rule by the end of this year. The proposed limits reduce the amount of acceptable PFAS in drinking water from 70 parts per trillion to 4 parts per trillion, a rule that many areas included in the study would violate, since researchers found those communities had PFAS levels at 5 parts per trillion. Jahred Liddie, lead author of the paper and a PhD student at Harvard’s School of Public Health, originally became interested in the topic of PFAS in college and wanted to see if inequities around air pollution and communities of color applied to PFAS exposure. “We know that there’s the forces of discrimination, segregation that kind of shape how pollution around the U.S. is patterned,” said Liddie.PFAS remediation is difficult and costly, which can strain towns that are already impoverished or unable to afford the costs of clean water. In some cases, those costs can get passed down to residents.As the EPA finalizes its rules, Liddie hopes regulators will acknowledge the inequities which cause higher PFAS levels in Black and Hispanic communities.

The toxic reality of PFAS “forever chemicals” contamination in Canada — Per- and polyfluoroalkyl substances (PFAS), also known as “forever chemicals,” are in our drinking water, our products, and even our bodies. It might sound like science fiction, but it’s an alarming reality. Earlier this month, the federal government issued a draft science report on PFAS in Canada and proposed action on PFAS-laden firefighting foams. However, firefighting foams are just one of many sources of PFAS. Restricting regulatory action to this single, albeit significant, source leaves other sectors off the hook. The federal government needs to take urgent action and tackle this issue in a more comprehensive way. Our research reports have highlighted the problem with PFAS in products and food contact materials, and the health and environmental consequences of these substances.PFAS have been linked to a range of adverse health outcomes, including asthma, high cholesterol, liver damage, low infant birth weight, early menopause, immune suppression, thyroid disease, and cancers, including testicular and kidney cancer. To make matters worse, exposures to environmental toxins and their effects areinequitably experienced, with racialized and low-income communities at higher risk.The cost of human health harms resulting from PFAS exposure in Canada has been estimated at upwards of $9 billion per year. Despite the toxicity and widespread use of PFAS, Canada’s toxics laws have not meaningfully dealt with this class of chemicals. Thousands of PFAS remain unassessed for safety, yet they are found in many products, from cookware to cosmetics and food packaging. Highly persistent, bioaccumulative and endocrine-disrupting chemicals in items used daily are creating a toxic legacy for kids and all of us. Sadly, this is just another example of the failure of our toxics laws to protect us, particularly the most vulnerable.Due to the long-range movement of these chemicals through the ecosystem, we are seeing these substances build up in species and people at alarming levels in Northern Indigenous communities. This environmental injustice cannot continue to be left unaddressed.

Air Force dispute with state environmental regulators could jeopardize new PFAS extraction project — The Air Force and state regulators appear to have reached an impasse on a proposed new PFAS extraction project. The toxic chemicals have contaminated the former Wurtsmith Air Force base in Oscoda. The extraction project is meant to keep some of the PFAS from entering Van Etten Lake near the base. EGLE says the work can't begin unless there is a signed document known as a Substantive Requirements Document (SRD). That document would govern discharge standards for an interim remedial system to stem the flow of PFAS chemicals into Van Etten Lake. "EGLE believes that SRDs are the appropriate mechanism to do compliance oversight at the (area) at Wurtsmith," the department said in an emailed statement. The Air Force said federal laws already require it to comply with state and federal cleanup standards, so there is no need for a permit or SRD. The dispute is raising frustrations — already high from previous disputes and delays related to the cleanup — among residents like Tony Spaniola, who is also co- founder of Need our Water, a community action group. He says this is just the latest delay by the Air Force. "I think most of the state of Michigan now knows the Air Force has really been tough to deal with and it's been very, very, very frustrating," Spaniola said. "We shouldn't be spending our time horsing around on these types of issues. We should be focusing on cleaning things up so the community can drink safe water." Spagniola said he is eager to see the new pump and treat extraction project go into operation, as it could lay the groundwork for a long-term strategy to keep the PFAS contamination confined to the base, so no further pollution of private wells or the lake occurs.

Bellwether ‘forever chemicals’ trial postponed as parties say they’re close to deal - A major trial over contamination from toxic “forever chemicals” has been postponed as both manufacturer 3M and a city seeking damages say they are close to reaching a deal.A federal trial brought by the city of Stuart, Fla., against 3M was slated to begin Monday, but it will now be postponed 21 days, according to a new order from Judge Richard Gergel.The order comes after both sides said that they were making progress in negotiations in a joint motion and asked for a delay. Bloomberg recently reported that 3M had reached a settlement of at least $10 billion. A spokesperson for the company declined to say whether this was true, saying “we don’t comment on rumors or speculation.”Meanwhile, DuPont, Chemours and Corteva announced on Friday that they reached a separate tentative settlement totaling nearly $1.2 billion with water providers who sued over the chemicals.Stuart’s claims had previously been selected as the first “bellwether” case out of hundreds of claims against manufacturers of the chemicals. Bellwether cases are seen as test cases in which both accusers and the accused can see how legal issues will play out in order to make decisions about future litigation. The case in question pertains to cleanup costs for the chemicals, which are also known as PFAS. PFAS, which stands for per- and polyfluoroalkyl substances, are the name of a group of chemicals that have been linked to health issues including kidney and testicular cancer, thyroid disease and high cholesterol. The substances can be found in a variety of products, ranging from Teflon pans to firefighting foam used by the military to waterproof apparel and cosmetics. They have also become pervasive in both human beings and waterways. They can be found in the blood of 97 percent of Americans according to the National Institute of Environmental Health Sciences. An analysis last year also found them in 83 percent of the waterways that it tested.

Rep. Slotkin unveils 5 bills to protect military members, communities from PFAS —— On Thursday, U.S. Representative Elissa Slotkin introduced new legislation to help protect service members from PFA exposure. Slotkin introduced five different bills including;

• The PFAS Free Military Purchasing Act, which would prohibit Department of Defense procurement of certain items containing certain types of PFAS, including cookware, floor wax, cleaning products, carpeting and upholstery and food packaging materials.
• The PFAS Exposure, Assessment, and Documentation Act, which would require the Department of Defense to evaluate service members for exposure to PFAS during physical exams and – if they are exposed – provide a blood test to determine and document their level of exposure.
• The PFAS Strictest Standard Act, which would require the Department of Defense to abide by most stringent standards among state or federal PFAS standards in cleanup efforts.
• The PFAS Training For DoD Providers and Service Members Act, which would require the Department of Defense to provide each of its medical providers with mandatory training regarding the potential health effects of PFAS.
• The PFAS Cleanup Transparency Act, which would require the Department of Defense to post on a publicly available website timely and regularly updated information on the status of cleanup at sites.

"These five bills will require the Department of Defense to take meaningful steps to clean up these ‘forever chemicals’ and to provide essential support to our men and women in uniform who have been exposed. Winding down the use of PFAS and cleaning up contaminated areas has been one of my top priorities in Congress – it’s a threat to Michiganders’ way of life, and it’s time for action," said Slotkin in a statement.Polyfluoroalkyl Substances (PFAS) are known as forever chemicals that can be found in your blood stream. People with PFAS found in there blood stream are at a higher risk for damaged liver, kidneys and thyroid, as well as worsened immune system, reproductive system and could develop multiple kinds of cancer.Michigan has the highest number of PFA contamination in the country. About 44 tons of PFAS have been released into the air and water supplies of Ohio and Michigan.

EPA’s proposed rules on PFAs in drinking water threaten Ohio Intel semiconductor plants —by Robert Paduchik, Republican National Committee Co-Chairman - Ohio has been a center of industry, and we have historically led the country in manufacturing innovative and essential products, from steel to automobiles. Thanks to the DeWine-Husted administration’s economic development policies, Ohio has returned to that proud heritage. Digital innovation has dominated the economy in every aspect of our lives, and there is one product that cannot be understated in this trend: semiconductors. Ohio is well-positioned to have a global impact in manufacturing these critical products and supplying them to the rest of the world. In January 2022, Intel – one of the world’s biggest semiconductor manufacturers – announced that it will construct two new semiconductor factories in Licking County. According to Intel, by the time that production starts in 2025, the plants will employ 3,000 workers with an average annual salary of $135,000, in addition to more than 10,000 indirect and construction jobs to build these facilities. A once-in-a-lifetime opportunity that countless Ohioans cannot afford to miss and one that our government should not get in the way. Regrettably, that is exactly what the Biden administration’s Environmental Protection Agency (EPA) has proposed. This past March, the EPA released its first-ever federal proposal to regulate the level of a category of chemicals called PFAS (Per- and Polyfluoroalkyl Substances) in drinking water. Specifically, the agency set the limits for PFOA (Perfluorooctanoic acid) and PFOS (Perfluorooctanesulfonic acid) — two of the most commonly used PFAS varieties — to 4 parts per trillion. These values are barely detectible with today’s technology, and the science is not yet even settled on the degree of human harms of these substances. This overbearing proposal ignores the importance of these chemicals to our manufacturers, particularly those in the semiconductor business. According to the Semiconductor Industry Association, PFAS are “used in chemical formulations, components of manufacturing process tools, facilities infrastructure and packaging used to make the semiconductor devices that are integral to our modern world.” The Biden administration needs pragmatic voices from its own party to remind the President of our country’s economic and national security priorities. To his credit, Senator Brown supported the CHIPS Act in the Senate. The time is now for Senator Brown and our elected officials to oppose the EPA’s silly regulations on PFAS.

'Sooty bark disease,' harmful for maples and humans, can be monitored by pollen sampling stations -- With intensive global trade, many tree parasites are accidently introduced to Europe in packaging or directly on goods. Traveling in wood, on plants or in the soil of their pots, they can remain undetected for a long time."Forms of life of parasitic fungi are extremely diverse and very often practically invisible," "An infected tree may look completely healthy for some time, which complicates the control of the disease enormously." How can an infected tree look healthy and then suddenly get sick? "Like in the human body, in trees too, the trigger can be stress," explains Dr. Dvořák. The tolerance of trees to a pathogenic fungus turns lower under the conditions of changing climate and so the tree starts to die of the disease.One typical example of such a disease is sooty bark disease (SBD) on maples, caused by a microscopic fungus called Cryptostroma corticale. "The fungus was probably introduced to Europe during the Second World War, and for the rest of the 20th century we did not hear much about it," says Dr. Dvořák. The situation has changed and over the last twenty years the fungus has been reported more and more often. After dry and hot periods, the trees start to die of the infection, which is accompanied by the creation of brown-black masses of "soot" under the peeling bark of the maples. The "soot" is in fact spores, which help the fungus spread and infect other trees. It is harmful for wounded trees, but it can also cause hypersensitivity pneumonitis in humans.How to look for DNA in air samples? Simple devices called volumetric air samplers can suck the air against a piece of sticky tape, where every particle gets stuck and can be analyzed. "These devices are not really cheap; moreover, they demand regular maintenance," explains Dr. Dvořák."But, actually, they are in common and regular use in the whole of Europe—remember the weather forecast, particularly that part about the pollen report for allergic people. This forecast is based on data of more than 600 stations united by the European Aeroallergen Network (EAN). Every station permanently maintains one volumetric air sampler and keeps an archive of the samples."

Canadian fires bring dangerous air quality to the US, impacting millions of Americans - ABC News -- Dangerous air quality will be a significant issue for millions of Americans to deal with early this week, as fires continue to spark throughout Canada. Much of that smoke is coming from new wildfires in the Quebec province, according to meteorologists. There have been nearly 400 forest fires in the province so far in 2023, while the 10-year average is 197, data from the fire prevention nonprofit SOPFEU shows, according to the Canadian Broadcasting Corporation. Satellite images show smoke moving over areas from Chicago and Indianapolis to Cincinnati, and much of Wisconsin is experiencing dangerous air near the surface. MORE: Video Cruise ship battered by storm off South Carolina This near-surface smoke, meaning people would be able to breathe it, will stretch from Wisconsin to West Virginia on Sunday. Dry weather and gusty winds in the Midwest have increased the wildfire risk, with a large portion of Michigan under a red flag warning. Outdoor burning is not recommended, as firefighters have been working to put out several fires over the last few days. The Wilderness Trail Fire in Michigan, which began on Saturday, has burned about 2,400 acres and is 85% contained, according to the Michigan Department of Natural Resources. Older adults, kids, people with lung or heart disease and those who are pregnant should not partake in lengthy or heavy exertion, according to meteorologists. The near-surface smoke will intensify by Tuesday morning, impacting areas from Nashville to Indianapolis, Pittsburgh to New York City and Hartford, Connecticut, to Burlington, Vermont. Despite inching closer to the official start of summer, a large part of the Northeast is unseasonably cool on Sunday, with much of New England looking at high temperatures in the 50s and 60s. A persistent cloudy and showery stretch of weather this weekend is leading to temperatures that are 20 to 30 degrees below normal for this time of year. Temperatures are expected to steadily rebound into the 70s headed through the upcoming week. New York and Pittsburgh are both forecast to reach 81 degrees on Tuesday.

Air quality advisory issued across Wisconsin because of Canadian wildfire smoke — There's another air quality advisory in effect for most of Wisconsin This orange advisory became active at 8 a.m. Sunday and remains in effect until Tuesday at midnight. The advisory impacts all of the counties in the 27 News viewing area: Columbia, Dane, Dodge, Grant, Green, Iowa, Jefferson, Juneau, Lafayette, Marquette, Richland, Rock, Sauk and Walworth. This time, smoke from wildfires in Quebec, Canada, is impacting air quality and making it unhealthy for sensitive groups — and even potentially unhealthy for all. According to the DNR, air quality is better to the northwest and southeast. It's worse within within the corridor south of a Minneapolis/St. Paul, MN, to Ironwood, MI, line and north of a Dubuque, IA ,to Green Bay, WI, line. The DNR recommends anyone with heart or lung disease, older adults and children to avoid prolonged time outside or heavy exertion. Everyone else should reduce their time outside and exertion.

Air Quality Alert: Smoke from Canadian wildfires will be 'very noticeable' in New England Tuesday - CBS Boston - Earlier in May, New England had numerous days with smoky haze due to wildfires that were burning thousands of miles away in Alberta. Last week, a brief but potent plume swung down from wildfires burning in Nova Scotia. But this latest round of smoke is coming from widespread fires burning in Ontario and Quebec. And unlike what we saw back in May, this smoke is hanging lower to the surface and will be very noticeable.More than 100 fires are currently burning in northwestern Quebec, with dozens of additional fires in Ontario. The prevailing winds are helping blow the smoke from these fires down across New England. The winds will continue to push them southeastward through Tuesday. With the smoke being close to the surface, you can expect to smell an acrid smoky scent during this time, and Air Quality Alerts will stay in effect from midnight Tuesday through midnight Wednesday. The heart of the plume should pass and leave the area by Wednesday morning.Anyone with sensitivity to air quality or other breathing-related issues should limit time outdoors, if possible.An upside-down pattern is helping fuel the widespread Canadian wildfires this spring. Unsettled and cooler than average weather has dominated the southern tier of the United States, while many parts of Canada had their hottest May on record and are still experiencing consistent warmer than usual temperatures through the start of June. Adding a bit of insult to injury, Tuesday would otherwise be the nicest day of the week when it comes to the weather. We'll manage more sunshine than the past few days, with temperatures warming into the 70s in most locations. But it will be tough to see any blue sky with the magnitude of smoke that's expected. And though it's the warmest and brightest day of the work week, there is still a chance for scattered showers and thunderstorms during the afternoon.

Toxic smoke from Canadian wildfires could impact health of millions in the US - -- Wildfires across the United States and Canada -- fueled by record heat and dry conditions -- could severely impact the health of millions of people. Smoke from wildfires in several Canadian provinces, including Ontario, Quebec and Nova Scotia, led toair quality alerts throughout several states in the Midwest, mid-Atlantic and Northeast. Additionally, fires in Michigan and New Jersey have created dense fog and heavy smoke.Inhaling toxic smoke and ash from wildfires could cause damage to the body -- including the lungs and heart -- and even weaken our immune systems, experts said."Wildfire smoke itself is quite a complex mixture and it's made up of fine particles … and a number of other gases, which are toxic, mainly due to the fact that wildfires burn everything so more toxic than household fires because everything has been burned," Dr. Kimberly Humphrey, a climate change and human health fellow at the Center for Climate, Health, and the Global Environment at Harvard T.H. Chan School of Public Health, told ABC News.Fine particulate matter known as PM2.5, which is 30 times smaller in diameter than a human hair, is of particular concern.Because these particles are too small to be seen with the naked eye, they can easily enter the nose and throat and can travel to the lungs, with some of the smallest particles even circulating in the bloodstream, according to the Environmental Protection Agency."The top offender here is these fine particles," Dr. Vijay Limaye, a climate and health scientist at the National Resources Defense Council, told ABC News. "That size is really important because can penetrate really deeply and wreak havoc on the body."PM2.5 can cause both short-term health effects, even for healthy people, including irritation of the eyes, nose and throat; coughing, sneezing; and shortness of breath and long-term effects such as worsening of conditions such as asthma and heart disease.This is especially concerning for vulnerable groups including children, pregnant people, older adults and those who are immunocompromised or having pre-existing conditions.

Wildfire, smoke map of US, Canada: Red flag warnings in 5 states -- Five states were under red flag warnings Tuesday due to hot, dry and unstable conditions, the National Weather Service said. Parts of Pennsylvania, New Jersey, Michigan, Washington and Alaska will remain under the warning until 8-10 p.m. local time, the weather service said.In Pennsylvania, lightning strikes may cause fires to start in dry areas. In Washington, dry and unstable air mass with warm temperatures could contribute to a fire. “Be careful with any activities that could potentially lead to a wildfire,” the weather service warned Michigan residents. “Camping, outdoor grills, smoking materials, chain saws and all terrain vehicles all have the potential to throw a spark and ignite a dangerous and destructive fire.”The weather service issues a “red flag warning” when weather conditions in an area are ripe for the spread of wildfires due to a combination of strong winds, low relative humidity and dry fuels. “Any fires that develop will likely spread quickly,” the weather service said. “Outdoor burning is not recommended.” Millions of Americans are exposed to unsafe air quality levels as eastern Canada experiences one of its worst reported wildfire seasons, officials said last week.The weather service issued air quality alerts to several U.S. states warning “sensitive groups” such as older adults, children and those with pre-existing respiratory conditions like asthma to limit prolonged or strenuous outdoor activity.Air pollution increases the risk of respiratory infections, heart disease and lung cancer, according to the World Health Organization.

Air quality concerns: Intense smoke fills NYC as East Coast suffers from Canada's wildfires | CNN— From Maryland to the Canadian capital, a mammoth-size cloud of smoke spewed by Quebec’s wildfires has forced children to stay indoors, grounded flights in New York City and left millions of residents at risk of breathing unhealthy air. More than 75 million people in the eastern US are underair quality alerts Wednesday due to the smoke, which made iconic skylines disappear behind wafting orange fumes. Major metro areas in Pennsylvania, New York, New Jersey and Connecticut have air quality indexes (AQIs) above 150 – which is considered “unhealthy,” according to the government website AirNow.gov. Philadelphia had an AQI of 205 as of Wednesday morning, which is classified as “very unhealthy.” New York City; Jersey City, New Jersey; and New Haven, Connecticut all had “unhealthy” AQIs ranging from 155 to 171 on Wednesday morning. “Yesterday, New Yorkers saw and smelled something that has never impacted us on this scale before,” New York City Mayor Eric Adams said Wednesday. “This is not the day to train for a marathon or to do an outside event with your children. Stay inside, close windows and doors, and use air purifiers if you have them.” Hundreds of miles away, Montgomery County Public Schools in Maryland canceled recess and all outdoor activities for Wednesday and Thursday due to the “influx of smoke” outside that could pose a health risk, the school district said. And the Canadian capital of Ottawa is getting hit with some of the worst air quality, according to AirNow.gov, a partnership of the US Environmental Protection Agency, the National Oceanic and Atmospheric Administration, the US Centers for Disease Control and Prevention and other agencies.

‘Like it’s on fire’: Eastern US faces serious health risks from Canadian wildfires --Wildfires in Canada are creating serious health hazards across the United States, turning the New York City skyline a tint of orange on Wednesday that made America’s largest city look like a location from a post-apocalyptic sci-fi film in widely shared photographs and broadcast images. New York and Detroit were listed among cities having the worst air quality in the world by IQ Air, a Swiss air quality tech company, while Philadelphia and Washington, D.C. faced “code red” air quality. The scenes led Varshini Prakash, executive director of the Sunrise Movement, to say New York looks “like it’s on fire.” The city’s polluted air created a health risk “equivalent to breathing in smoke from cigarettes,” said a written statement from Prakash, who added it was “absurd” the government didn’t take action by declaring a climate emergency. The effects of the fires are widespread across the country, affecting more than a dozen states. NBC News reportedthat parts of 18 states were under air quality alerts as of Wednesday. Meanwhile, EPA spokesperson Shayla Powell told The Hill in an email that the agency estimates that more than 100 million people are being impacted by air quality alerts on Wednesday, including as far west as Chicago and as far South as Atlanta. Powell said that in these locations, air quality is at least code orange — that is unhealthy for sensitive groups — if not worse. She noted, however, that the agency does not have information on the cause of the alerts, and that local pollution emissions or other factors may also be contributing. “Yesterday New Yorkers saw and smelled something that had never impacted us on this scale before …we had dangerously high levels of wildfire smoke from thousands of miles away, from the gloom over Yankee Stadium to the smoky haze scouring our skyline,” “We could see it, we could smell it and we felt it.” It’s far from clear when people will get some relief, with much depending on the weather.

FAA Grounds All Flights At NYC's LaGuardia Due To Canadian Wildfire Smoke As 'Blade Runner-esque' Scenes Blanket East Coast -- According to the Federal Aviation Administration, New York City's LaGuardia Airport has grounded departures "due to low visibility" until 1400 EST. Nearby Newark Liberty International Airport tweeted that "current smoke condition may impact your travel, please check with your airline to determine the status of your flight." Besides New York City area airports, ones in Philadelphia and across Baltimore–Washington metro area also experienced hazy conditions. Samuel Ausby with the FAA Command Center tweeted, "Today we're dealing with some smoke and haze in the northeast." "There are some fires in Canada that have been producing some smoke, due to the wind patterns it is now impacting the northeast of the US so from Boston, the NY metro area, Philadelphia and the DC metro area — are all experiencing some smoke that could impact travel through the airports," he said. The Northeast looks like scenes from Blade Runner 2049. According to the flight-tracking website FlightAware, there have been 1,147 flights delayed and 73 canceled. Many of the flight disruptions are across the East Coast.

Air Quality Alert in Washington, DC Elevated to Code Purple, Mayor Bowser Urges Residents to Follow Recommendations Related to the Code Purple Air Quality Alert (Washington, DC) – This morning, the Metropolitan Washington Council of Governments and District Department of Energy and Environment (DOEE) issued a “Code Purple” air quality alert for Washington, DC for Thursday, June 8. A Code Purple air quality alert indicates very unhealthy air conditions for the entire public, not just those with respiratory illnesses.In response, Mayor Muriel Bowser and District officials from DOEE, the DC Homeland Security and Emergency Management Agency, and the Department of Health (DC Health) are urging residents and visitors to follow precautions related to the “Code Purple” air quality alert.Smoke from Canadian wildfires is causing unhealthy air quality in the Washington, DC area and the northeast United States, and this problem is likely to continue or worsen through Friday. DC Health and DOEE recommend that residents pay attention to local air quality reports and the US Air Quality Index at airnow.gov.When the Air Quality Index is above 200 in your area (Code Purple or Maroon), all groups should stay indoors as much as possible. Those who must work outside should reduce work outside if possible, and if not, wear a mask (N95 or KN95 equivalent).When the Air Quality Index is above 150 in your area (Code Red), District residents are recommended to:

1. Avoid exercising and other strenuous activities outdoors.
2. Older adults (over age 65), children, pregnant women, and those who have heart disease, asthma, or other chronic lung disease, should stay indoors as much as possible. Keep windows and doors closed. Run an air conditioner if you have one, but keep the fresh-air intake closed and the filter clean to prevent outdoor smoke from getting inside.
3. Use an air filter. Use a freestanding indoor air filter with particle removal. Follow the manufacturer’s instructions on filter replacement and where to place the device.
4. If you are vulnerable because of age or medical conditions and must be outdoors, consider wearing a tight-fitting N95 or KN95 mask. Paper “comfort” or “dust” masks commonly found at hardware stores or ordinary cloth masks will not protect your lungs from smoke. However, a tightly-fitting “N95” mask or “KN95 mask” will offer some protection. See the Respirator Fact Sheet provided by the Centers for Disease Control and Prevention’s National Institute for Occupational Safety and Health.
5. If you have asthma, chronic lung disease, or heart disease, follow your doctor’s advice about medicines. Call your doctor if you have difficulty breathing or worsening symptoms.

Belmont cancels racing, Nationals postpone game due to poor air quality from wildfires in Canada - Racing at Belmont Park was canceled and the Washington Nationals’ home game against the Arizona Diamondbacks was postponed Thursday due to poor air quality from wildfires in Canada. It’s the second straight day the continuing fires north of the border have impacted sports in the Northeastern United States. Several Major League Baseball games were called off Wednesday. A National Women’s Soccer League game in New Jersey and an indoor WNBA game set for Brooklyn were also called off Wednesday amid hazy conditions that have raised alarms from health authorities. With weather systems expected to barely budge, the smoky blanket billowing from wildfires in Quebec and Nova Scotia and sending plumes of fine particulate matter as far away as North Carolina and northern Europe could persist throughout Thursday and possibly the weekend. The New York Racing Association canceled live racing at Belmont Park two days before the facility is scheduled to host the final leg of the Triple Crown with the Belmont Stakes. As previously announced, morning training was canceled Thursday at both Saratoga Race Course and Belmont Park. The conditions that necessitated the cancelation of training are likely to persist this afternoon and into the evening, according to the NYRA, and a twilight racing program that would kick off the 2023 Belmont Stakes Racing Festival has been cancelled. “Based on current forecast models and consultation with our external weather services, we remain optimistic that we will see an improvement in air quality on Friday,” NYRA President & CEO David O’Rourke said in a statement. New York Gov. Kathy Hochul warned the Belmont Stakes could be called off if the air quality index exceeds 200 on its scale.

MLB postpones games as wildfire smoke continues to wreak havoc on US sports — A string of sports games and practices have been postponed as smoke from Canadian wildfires continues to choke the Midwest, Northeast and Southeast parts of the United States. Around 75 million people are under air quality alerts as wildfire smoke shrouds major US cities, with Major League Baseball (MLB), the Women’s National Basketball Association (WNBA) and the National Women’s Soccer League (NWSL) forced to postpone games due to concerns over dangerous air quality. The MLB postponed two games – one between the Detroit Tigers and the host Philadelphia Phillies at Citizens Bank Park and the other between the Chicago White Sox and the New York Yankees at Yankee Stadium – on Wednesday due to medical and weather expert warnings about “clearing hazardous air quality conditions in both cities,” the league said in a statement. Thursday’s game between the Arizona Diamondbacks and the Washington Nationals at the Nationals Park has also been rescheduled until June 22, the league confirmed Thursday. The news came after the highest level of poor air quality – level 6 of 6 – became widespread over Washington, DC, and Baltimore, according to readings from the airnow.gov website. Meanwhile, the WNBA was forced to postpone Wednesday’s game between the New York Liberty and the Minnesota Lynx due to smoke impacting the Liberty’s home arena, with the league noting that information regarding the rescheduling of the game would be provided at a later date. The New York Racing Association (NYRA) canceled Thursday’s training at Belmont Park due to “poor air quality conditions” affecting New York state, while in New Jersey, the NWSL postponed Wednesday night’s Challenge Cup game in Harrison and rescheduled it for August 9. “Following consultation with the NWSL Medical and Operations staff, it was determined that the match could not be safely conducted based on the projected air quality index,” the NWSL said in a statement. Smoke from Canada’s fires has periodically affected the Northeast and Mid-Atlantic for more than a week, raising concerns over the harms of persistent poor air quality. More than nine million acres have been charred by wildfires in Canada so far this year – about 15 times the normal burned area for this point in the year – and more than 10,500 people have been evacuated from communities across Alberta.

A third day of smoky air gives millions in US East Coast, Canada a new view of wildfire threat - -- Images of smoke obscuring the New York skyline and the Washington Monument this week have given the world a new picture of the perils of wildfire, far from where blazes regularly turn skies into hazardous haze. A third day of unhealthy air from Canadian wildfires may have been an unnerving novelty for millions of people on the U.S. East Coast, but it was a reminder of conditions routinely troubling the country’s West — and a wake-up call about the future, scientists say. “This is kind of an astounding event” but likely to become more common amid global warming, said Justin Mankin, a Dartmouth College geography professor and climate scientist. “This is something that we, as the eastern side of the country, need to take quite seriously." Millions of residents could see that for themselves Thursday. The conditions sent asthma sufferers to hospitals, delayed flights, postponed ballgames and even pushed back a White House Pride Month celebration. The fires sent plumes of fine particulate matter as far away as North Carolina and northern Europe and parked clumps of air rated unhealthy or worse over the heavily populated Eastern Seaboard. At points this week, air quality in places including New York, the nation’s most populous city, nearly hit the top of the U.S. Environmental Protection Agency’s air-pollution scale. Local officials urged people to stay indoors as much as possible and wear face masks when they venture out. Such conditions are nothing new — indeed, increasingly frequent — on the U.S. West Coast, where residents were buying masks and air filters even before the coronavirus pandemic and have become accustomed to checking air quality daily in summertime. Since 2017, California has seen eight of its 10 largest wildfires and six of the most destructive. The hazardous air has sometimes forced children, older adults and people with asthma and other respiratory conditions to stay indoors for weeks at a time. Officials have opened smoke shelters for people who are homeless or who might not have access to clean indoor air. So what’s the big deal about the smoke out East?

Canada wildfires: Smoky haze blanketing US, Canada could last into the weekend — On air quality maps, purple signifies the worst of it. In reality, it’s a thick, hazardous haze that’s disrupting daily life for millions of people across the U.S. and Canada, blotting out skylines and turning skies orange. And with weather systems expected to hardly budge, the smoky blanket billowing from wildfires in Quebec and Nova Scotia and sending plumes of fine particulate matter as far away as North Carolina and northern Europe should persist into Thursday and possibly the weekend. That means at least another day, or more, of a dystopian-style detour that’s chased players from ballfields, actors from Broadway stages, delayed thousands of flights and sparked a resurgence in mask wearing and remote work — all while raising concerns about the health effects of prolonged exposure to such bad air. The weather system that’s driving the great Canadian-American smoke out — a low-pressure system over Maine and Nova Scotia — “will probably be hanging around at least for the next few days,” U.S. National Weather Service meteorologist Bryan Ramsey said. “Conditions are likely to remain unhealthy, at least until the wind direction changes or the fires get put out,” Ramsey said. “Since the fires are raging — they’re really large — they’re probably going to continue for weeks. But it’s really just going be all about the wind shift.” Across the eastern U.S., officials warned residents to stay inside and limit or avoid outdoor activities again Thursday, extending “Code Red” air quality alerts in some places for a third-straight day as forecasts showed winds continuing to push smoke-filled air south. The smoke has moved over Greenland and Iceland since June 1, and was expected to reach Norway on Thursday, the Norwegian Climate and Environmental Research Institute said, but wasn’t expected to be a health concern. In Washington, D.C., Mayor Muriel Bowser ordered schools to cancel outdoor recess, sports and field trips Thursday. In suburban Philadelphia, officials set up an emergency shelter so people living outside can take refuge from the haze. New York Gov. Kathy Hochul said the state was making a million N95 masks — the kind prevalent at the height of the COVID-19 pandemic — available at state facilities, including 400,000 in New York City. She also urged residents to stay put. “You don’t need to go out and take a walk. You don’t need to push the baby in the stroller,” Hochul said Wednesday night. “This is not a safe time to do that.”

Wildfires in Western Canada engulf 400 000 ha (1 million acres), impacting air quality across North America - Large wildfires have been raging across Western Canada over the past 2 weeks, burning close to 404 686 hectares (nearly 1 million acres). The fires have forced the evacuation of tens of thousands of residents and have caused significant structural damage. Large plumes of smoke produced by the fires have stretched from west to east across the North American continent, significantly impacting air quality in several areas. New York City experienced hazardous air quality levels on June 6, primarily due to smoke from these fires. The east coast has been particularly affected, with smoke from fires in Nova Scotia and Quebec playing a significant role. Currently, the Quebec region is grappling with over 160 forest fires, further exacerbating the situation. Air quality alerts have been issued in several other cities, including Baltimore, Boston, Raleigh, Minneapolis, and St. Louis. The smoke is also extending into the Ohio Valley, causing concerns for residents in the region. Earlier in the month, states like Colorado, Montana, and parts of Idaho issued air quality warnings as a result of the wildfires in Western Canada. The smoke from the fires has been far-reaching, affecting air quality across large swaths of the United States. Canadian authorities report that the total number of wildfires in the country is now well over 400, with no short-term forecast for improvement. The situation remains a concern for both local residents and those living in regions affected by the smoke..

Wildfires reignite calls for Biden to declare a climate emergency - Liberal lawmakers are renewing their calls for President Biden to declare a national climate emergency, citing the smoke from Canadian wildfires descending on the Capitol and much of the eastern United States. “This is a planetary emergency, and the president should declare an emergency,” Sen. Jeff Merkley (D-Ore.) told The Climate 202 yesterday. “It is the biggest issue facing humankind. We are on a trajectory for a massive increase in climate chaos, affecting us in every possible way.” Sen. Bernie Sanders (Vt.), an independent who caucuses with Democrats, agreed that an emergency declaration is warranted. “This should be a wake-up call to every member of the Congress that if we don’t get a handle on climate change, it is going to be absolutely devastating,” Sanders said. “This is not the end of the problem — this is the beginning of what we’re going to be seeing.” Scientists say human-caused global warming has exacerbated the hot and dry conditions that allow wildfires to spark and spread. An emergency declaration would give the president sweeping executive powers to crack down on fossil fuels, a leading cause of climate change, including by blocking crude oil exports. Biden first considered issuing an emergency declaration last year, when it appeared that Democrats’ signature climate law had collapsed in Congress amid resistance from Sen. Joe Manchin III (D-W.Va.). But the president abandoned the idea after Manchin helped broker a surprise deal on the Inflation Reduction Act. With unprecedented air pollution affecting about 123 million people yesterday, liberal lawmakers and activists say now is the moment to reconsider marshaling these powers. “It’s past time to declare a National Climate Emergency and unleash every resource available to prepare for and mitigate the worst impacts of increasingly frequent climate-fueled disasters, like forest fires, heat waves, floods, and more,” Rep. Earl Blumenauer (D-Ore.) said in a statement.

Dems seize on Canada wildfires to pound GOP’s climate opposition - The wildfire smoke blanketing the Capitol is giving Democrats a fresh opportunity to lambaste the GOP for its opposition to taking action on climate change — including steps that Republicans were taking as the wall of haze descended.In Congress, Republicans railed this week against climate rules for power plants and attempted to kneecap future regulations on indoor air pollution from gas stoves. In Virginia, meanwhile, state regulators appointed by Republican Gov. Glenn Youngkin voted Wednesday to pull their state out of a regional program meant to slash power companies’ greenhouse gas pollution.Democrats say those actions fly in the face of a wealth of science, including research backed by the U.S. government, showing that the planet’s warming is worsening wildfires and other disasters around the globe. That reality is now creating milky smog and orange skies for tens of millions of Americansbecause of smoke from hundreds of fires in Canada, while schools cancel recess and flight delays hamper passengers throughout the East Coast. And it’s literally hitting Washington leaders where they live and breathe.“Imagine being a Republican climate change denier in Congress — you show up to work at the Capitol today, see the skies filled with smoke … and you still don’t get that we need bold and immediate action to save our planet? Ridiculous,” Rep. Pramila Jayapal (D-Wash.), the chair of the Congressional Progressive Caucus, tweeted on Wednesday.Republicans accused Democrats of overplaying the public health risks. And some said the Canadian blazes are giving East Coast residents a taste of life out West, where destructive wildfires have become the norm.

London Dry Spell Tops Three Weeks, Longest Since Last Year’s Heat Wave - London hasn’t seen rain in more than three weeks, the longest stretch since last July when record-breaking temperatures scorched the capital. The city’s last rainfall was May 14, and the chance of precipitation is scant through at least June 11, according to the Met Office. Temperatures in parts of Britain are set to rise into the high 20s-Celsius (above 80F) this week, the forecaster said. Europe is bracing for another summer of potentially parched conditions and extreme heat as changes in the climate become increasingly intense. Last year, a historic drought and deadly heat wave shriveled rivers, triggered wildfires and halted transportation — contributing to volatility in energy and commodity prices.In the UK alone, precipitation patterns have been dramatic this year, with February being the driest for the month in three decades, followed by the wettest March in 40 years. A lack of reservoirs and widespread water leaks has put pressure on the country’s resources during dry weather. Scotland is already seeing signs of an early drought, with situation expected to escalate in the coming weeks. “If drier spells were to continue, they would develop drought conditions,” said Andrew Pedrini, a Meteorologist at Atmospheric G2. “According to the latest projection, we should see some relief on the way, beginning later this week/weekend and then again later in June.”

US Corn Crop Deteriorates After Midwest Hit By Worst Drought In Decades -- Farmers in Corn Belt states have been very concerned about their crops this spring as drought expands across the Heartland. The latest weekly report from the US Department of Agriculture shows the US corn crop deteriorated by the most in nearly three years as drought conditions worsened in the Midwest. About 64% of the nation's corn crop was rated good-to-excellent in the weekly report, a five percentage-point plunge that was the most significant decline since August 2020. The drop was more than double of any analysts surveyed by Bloomberg. According to the US Drought Monitor, Illinois, Indiana, Iowa, Michigan, Minnesota, Missouri, Ohio, and Wisconsin, often called the "Corn Belt" states, are experiencing "exceptional drought" to "moderate drought." The timing of the drought, this early in the season, could stress young plants. "Soil moisture levels decreased sharply," the USDA's Indiana field office noted in the report.

Dry Weather to Slash Australia’s Next Wheat Crop by a Third --Australia’s wheat production is forecast to slump 34% in the coming season as the development of El Niño is likely to suppress rainfall across large swaths of the country, the government crop forecaster said.Dry conditions and low soil moisture in some growing regions mean that much of the 2023–24 crop has been sown dry and will require adequate and timely rain to allow plants to germinate, the Australian Bureau of Agricultural and Resource Economics and Sciences said. Wheat is a major winter crop in Australia with planting from April and the harvest starting in November.Apart from Australia, wild weather is affecting crops elsewhere, including in the Americas and North Africa. The harvest in top wheat consumer China has also been hit by torrential rains, potentially boosting the need for more imports. For now, global wheat prices are near their lowest in over two years on optimism for bumper harvests across Europe, helping to keep food costs in check. The expected onset of El Niño conditions from July will likely see winter crop output fall significantly, Abares said. Dry weather has already arrived, according to the Bureau of Meteorology, with the second-driest May on record nationwide and the driest in Western Australia since observations began. Prior to this, the country had a run of three very wet years, unusual historically. “Western Australia is looking dry overall, but there were some recent rains to help crops along,” said Dennis Voznesenski, agricultural analyst at Rabobank. “There is more rain in the forecast,” he said. Still, weather systems that cause dryness are forming on both the west and east coasts of Australia, he added.

El Niño Fears Surge Among CEOs As Economy In Crosshairs Of Extreme Weather As we have highlighted, the global economic impact of El Niño could be in the trillions of dollars over the next several years. American business leaders are bracing for weather disruptions as their discussion on recent earnings calls about the damaging weather phenomenon surges to multi-year highs. Bloomberg data shows executives speaking about El Niño has surged to the highest levels since 2019. There is growing concern among some corporate America that extreme weather will dent future earnings. News stories referencing El Niño have surged to highs not seen since October 2015. Christopher Callahan, an Earth system scientist at Dartmouth College, who co-authored the report "Persistent effect of El Niño on global economic growth," recently warned: "There's an economic legacy of El Niño in GDP [gross domestic product] growth." Last month, NASA's Jet Propulsion Laboratory in Southern California identified a "potential precursor" of El Niño conditions after one of its satellites spotted a massive wave of warm water moving across the equatorial Pacific.Sentinel-6 Michael Freilich can detect Kelvin waves – low waves that can be hundreds of miles /km wide. When Kelvin waves form at the equator, they can bring warm water – and higher sea levels – from west to east across the Pacific, all characterizations of an El Niño. pic.twitter.com/0TrjhyWmxK As of May 11, NOAA's Climate Prediction Center said the probability of El Niño forming is greater than 90% over the next few months.

Tropical Storm “Mawar” triggers landslides and flooding in Japan, leaving 2 dead and 5 missing - More than 2 million people were ordered to evacuate their homes as Tropical Storm “Mawar”, accompanied by a severe weather front, brought heavy rains and caused widespread damage in Japan on June 2, 2023, triggering floods and landslides.Thunderstorms were developing in succession from Friday through Saturday morning, June 2 – 3, in western and central areas, with 23 locations in eight prefectures seeing record levels of 24-hour rainfall, according to the Japan Meteorological Agency.The Fire and Disaster Management Agency (FDMA) issued evacuation orders for over 2 million people across multiple prefectures, including Gifu, Shizuoka, Aichi, Mie, Osaka, Nara, Wakayama, and Tokushima, as the storm brought heavy rains and strong winds. Tosashimizu City in Kochi Prefecture recorded 93 mm (3.66 inches) of rain in 1 hour and 358.5 mm (14.11 inches) in 12 hours on June 2. On the following day, Tahara City in Aichi Prefecture registered 341.5 mm (13.44 inches) of rain in a 12-hour span.As of June 3, 2 people have lost their lives and 5 were missing. One victim died in Toyohashi, Aichi, trapped in a flooded vehicle, while another individual was swept away by floodwaters in Moka, Tochigi Prefecture. A total of 35 people were injured, including 10 in Okinawa and 14 in Kanagawa Prefectures.Among the missing is Hisao Sakai, 72, a respected figure from the city of Kinokawa. Known for his kindness and sense of responsibility, Sakai served as the head of the neighborhood association and played other leadership roles in the community. When the Makuni River began to overflow on June 2, Sakai left his home in an upland area with ropes in his hands to rescue people who were still left in their homes along the river. He was subsequently swept up in the muddy waters.

Devastating floods hit Ecuador, extensive damage reported in Esmeraldas - (video) Over 11 750 individuals were impacted by intense flooding between June 3 and June 4, 2023, in the Esmeraldas Province of Ecuador due to the overflowing of six rivers following continuous rainfall. The cantons of Esmeraldas, Atacames, Quinindé, and Muisne bore the brunt of the floods, resulting in extensive damage to properties and necessitating broad-scale evacuations. Severe flooding has wrought havoc on Esmeraldas Province in Ecuador, affecting various communities in the cantons of Esmeraldas, Atacames, Quinindé, and Muisne. The flood, which occurred due to a period of heavy rainfall between June 3 and 4, has had a significant impact on the lives of over 11 000 people, prompting extensive rescue operations involving boats and helicopters. However, there have been no reported fatalities or missing persons in the wake of the disaster​. Esmeraldas Canton was among the areas hardest hit by the flooding. Vast areas are now underwater, leading to the damage of approximately 2 395 homes and directly affecting around 10 000 residents. The flooding also caused substantial damage to other essential structures, including a prison and several schools. In Atacames Canton, flooding resulted in damage to four schools and 300 homes, impacting approximately 1 200 individuals. In Quinindé Canton, 150 homes were damaged, affecting around 350 people. Muisne Canton saw damage to 50 homes, affecting about 200 residents. In total, four houses were completely destroyed, leaving 16 individuals homeless​​. The intense rainfall led to the overflow of six rivers in the affected regions, causing significant flooding. In Atacames Canton, the Súa and Tonchigüe rivers breached their banks. Meanwhile, the Teaone River in Esmeraldas Canton caused substantial flooding. The Cube, Viche, and Blanco rivers in Quinindé Canton also overflowed​. In addition to the immediate impact of the flooding, disaster authorities have revealed that the heavy rainfall has contributed to a total of 2 322 dangerous events reported since January 1, 2023. These incidents have resulted in 36 fatalities, with 174 homes completely destroyed and an additional 21 674 homes suffering damage. The recent floods in Esmeraldas are part of this larger pattern of severe weather events that have affected the country this year​. Emergency response measures have been implemented, including the evacuation of over 500 people by boat and 30 by helicopter. The Armed Forces have deployed 500 troops, and the National Police have dispatched 110 officers to aid in the emergency​.

Deadly landslide strikes Sichuan Province in China, leaving 19 dead - In the early hours of June 4, 2023, a catastrophic landslide in the Sichuan Province of China resulted in the confirmed deaths of 19 individuals. The landslide, which occurred in a forest park in Jinkouhe District, near the city of Leshan, ended rescue efforts and instigated an investigation into the cause of the mountain collapse. On Sunday, June 4, 2023, a tragic landslide in the Sichuan province of southwestern China resulted in the confirmed death of 19 individuals — all apparently workers with the Jinkaiyuan mining company. The landslide occurred near a state-owned forestry station in Jinkouhe, close to the city of Leshan, at approximately 06:00 local time. The collapse sent a destructive torrent of mud and debris toward a nearby mining company’s construction site, obliterating parts of the production and living facilities at the mine platform. According to state broadcaster CCTV, the search and rescue work ended by 20:00, and an investigation into the cause of the collapse is currently underway. The footage broadcasted by CCTV depicted a grim scene of rescuers and excavators navigating a stretch of land transformed by the disaster, with twisted metal, smashed masonry, and the flattened remains of a wooded hillside littering the area. The local government in Jinkouhe initially reported 14 deaths, with five people missing. However, all 19 individuals have since been confirmed dead. An undisclosed number of mine workers were safely evacuated, as reported by CCTV. In response to the disaster, over 600 people, along with a significant amount of rescue and recovery equipment, were dispatched to the site. The settlement, home to around 40 000 individuals, is located approximately 386 km (240 miles) south of the provincial capital, Chengdu. Landslides pose a frequent threat in China’s rural and mountainous regions, especially during the rainy summer months.

Widespread floods and landslides hit Haiti, leaving 15 people dead and 8 missing - (video) Haiti is grappling with the aftermath of heavy rains that have caused flooding and landslides across the country, resulting in at least 15 deaths, with eight people still missing and thousands of families affected. Over the weekend of June 3 – 4, 2023, the entire Hispaniola island nation was drenched in rain, causing several rivers to flood and forcing local authorities to enact emergency measures. The country’s Civil Protection Agency reports floods and landslides have affected 7 475 families, damaged 1 219 houses, and displaced approximately 13 390 people. The West, Nippes, South-East, North-West, and Center administrative departments were the hardest hit. In the West department alone, more than 5 510 households were damaged. The central region’s crops were “very impacted,” according to the Agency. Images and video footage circulating on the internet reveal the dire situation, with people seeking refuge on the tin roofs of houses as floods swept through their villages. The Civil Protection Agency has urged residents to keep informed about the weather and safety instructions, as the Hydro-Meteorological Unit of Haiti continues to monitor the evolving weather conditions and forecast scattered thunderstorms and showers throughout the country through June 6​. With more rains expected, there is a fear of more flooding, landslides, and associated disruptions. The death toll is likely to rise as search and rescue operations progress, and more evacuation orders may be issued for flood-prone communities in the coming days

Severe floods and landslides hit Turkey’s Black Sea region - - Two people lost their lives as heavy rains swept across northern Turkey, particularly the Black Sea region, from June 4, 2023, triggering floods and landslides, and causing rivers to overflow. Torrential rains hit Turkey’s Black Sea region over the past couple of days resulting in destructive floods and landslides. The Disaster and Emergency Management Presidency (AFAD) reported two fatalities as of June 5, one in Samsun and another in the Amasya Province, with one person still missing in Amasya. Samsun Province was among the hardest hit. Schools were closed in Ladik, Atakum, İlkadım, Canik, and Tekkeköy districts as a precautionary measure. A tragic incident occurred in the Ladik district where an individual was swept away from a bridge over a flooding stream. The district recorded 93.6 mm (3.68 inches) of rainfall within a 24-hour period until June 5. In the Canik district, the collapse of a wall in a parking lot destroyed several vehicles. In Kastamonu Province, the İnebolu and Söke Streams swelled as a result of heavy rain. Residents in flood-prone areas of the İnebolu district were advised to relocate to upper floors or evacuate their houses for their safety. Bozkurt district, also in Kastamonu, recorded a significant 127.5 mm (5.02 inches) of rainfall in a 24-hour period up until June 5, while İnebolu recorded 99.6 mm (3.92 inches) during the same period. Amasya Province also felt the destructive impacts of the heavy rain, particularly in the Amasya District. In Kızılkışlacık village, three individuals were caught in severe floods, leading to two missing persons and one survivor. The body of one victim was found by June 5, with emergency crews continuing their search for the other missing person. Schools were closed and at least 8 people evacuated in the Ayancık and Türkeli districts of Sinop Province. The rainfall recorded in these areas was substantial: Ayancık recorded 149.1 mm (5.87 inches) and Türkeli 147.4 mm (5.80 inches) within a 24-hour period until June 5.

Collapse of major dam in Ukraine triggers emergency as Moscow and Kyiv blame each other — The wall of a major dam in southern Ukraine collapsed Tuesday, triggering floods, endangering Europe’s largest nuclear power plant and threatening drinking water supplies as both sides in the war scrambled to evacuate residents and blamed each other for the destruction. Ukraine accused Russian forces of blowing up the Kakhovka dam and hydroelectric power station on the Dnieper River in an area that Moscow controls, while Russian officials blamed Ukrainian bombardment in the contested area. It was not possible to verify the claims. The potentially far-reaching environmental and social consequences of the disaster quickly became clear as homes, streets and businesses flooded downstream and emergency crews began evacuations; officials raced to check cooling systems at the Zaporizhzhia Nuclear Power Plant; and authorities expressed concern about supplies of drinking water to the south in Crimea, which Russia illegally annexed in 2014. Both Russian and Ukrainian authorities brought in trains and buses for residents. About 22,000 people live in areas at risk of flooding in Russian-controlled areas, while 16,000 live in the most critical zone in Ukrainian-held territory, according to official tallies. Neither side reported any deaths or injuries. The dam break added a stunning new dimension to Russia’s war in Ukraine, now in its 16th month. Ukrainian forces were widely seen to be moving forward with a long-anticipated counteroffensive in patches along more than 621 miles of front line in the east and south. It was not immediately clear whether either side benefits from the damage to the dam, since both Russian-controlled and Ukrainian-held lands are at risk. The damage could also hinder Ukraine’s counteroffensive in the south and distract its government, while Russia depends on the dam to supply water to Crimea.

Collapse of critical Ukrainian dam sparks region-wide evacuations. Here’s what we know - A major dam and hydro-electric power plant in Russian-occupied southern Ukraine suffered a collapse early Tuesday, prompting mass evacuations and fears for large-scale devastation as Ukraine accused Moscow’s forces of committing an act of “ecocide.” Residents downstream from the Nova Kakhovka dam on the Dnipro River in Kherson were told to “do everything you can to save your life,” according to the head of Ukraine’s Kherson region military administration, as video showed a deluge of water gushing from a huge breach in the dam.The critical Nova Kakhovka dam is the largest reservoir in Ukraine in terms of volume. It’s the last of the cascade of six Soviet-era dams on the Dnipro River, a major waterway running through southeastern Ukraine. There are multiple towns and cities downstream, including Kherson, a city of some 300,000 people before Moscow’s invasion of its neighbor. Two videos posted to social media and geolocated by CNN showed the destroyed dam wall and fast-moving torrents of water flowing out into the river. Multiple buildings at the entrance to the dam were also heavily damaged.It is unclear what caused the dam to collapse in the late evening of Monday or early hours of Tuesday.A CNN analysis of satellite imagery from Maxar shows the dam was damaged just days before suffering the structural collapse.The satellite images show the road bridge that ran across the dam was intact on May 28. However, imagery from June 5 shows a section of the same bridge missing. Analysis of lower-resolution satellite imagery suggests the loss of the bridge section took place between June 1 and 2. CNN cannot independently verify whether the damage to the road bridge played a part in the dam’s collapse, or whether it was destroyed in a deliberate attack by one of the warring parties. Data shows water levels in the reservoir behind the dam were at record highs last month, according to the Hydroweb information service. Both Ukrainian and Russian officials said the dam collapsed in an explosion and are blaming each other for it. The incident happened as Ukraine was gearing up for a widely anticipated counter-offensive.The Ukrainian military intelligence said an explosion occurred at 2:50 a.m. local time on Tuesday (7.50 p.m. ET Monday), when “Russian terrorists carried out an internal explosion of the structures of the Kakhovka hydro-electric power plant.” The Kremlin on Tuesday rejected the accusations. In his regular call with journalist Dmitry Peskov said the attack was “planned and carried out by order received from Kyiv, from the Kyiv regime.”

Critical Dam in Southern Ukraine that Provides Water to Crimea Destroyed - The Nova Kakhovka Dam, located in southern Ukraine along the Dnipro River, was destroyed on Tuesday. While Kiev and Moscow are accusing each other of the attack, Russia will suffer more consequences of the dam’s destruction.The dam was built by the USSR during the 1950s and, for over a year, has sat on the frontlines of the war in Ukraine. It is nearly 100 feet tall and over 10,000 feet wide. The dam was constructed as a hydroelectric power plant and created the Kakhovka Reservoir, which is over 2,000 sq km. Europe’s largest nuclear power plant – the Zaporizhzhia Nuclear Power Plant (ZNPP) and the Crimean Peninsula receive water from the reservoir.An explosion reportedly ripped through the dam on Tuesday morning, causing flooding to begin downstream. It is unclear if the attack was intentional. The BBC noted the dam had been damaged within the last week. The most immediate impact of the dam’s destruction is flooding surrounding areas, which is expected to displace at least 16,000 people. A Ukrainian official said eight towns have already been partially or completely flooded. The flooding is expected to be worse in areas controlled by Russia.The region will also suffer environmental damage from the flooding and tonnes of industrial lubricant used in the hydroelectric power plant.Another concern is the ZNPP, which is controlled by Russian forces. The Kakhovka Reservoir provided cooling water to the massive power plant. The IAEA, the UN’s nuclear watchdog group, said it is “closely monitoring the situation,” but there is “no immediate nuclear safety risk.”

Catastrophic Breach of Nova Kakhovka Dam Floods Lower Dnieper, Cuts Crimea Water Supplies; Ukraine Attacks in Bakhmut, South Donetsk [Updated] – Yves Smith - Ukraine and Russia are pointing fingers at each other over the massive breach of the Nova Kakhova dam. Readers likely recall that the fear that Ukraine would blow up the dam led Russia to take the seriously-bad-from-an-optics perspective move of pulling out of Kherson City. Destruction of the dam would flood its low-lying sections and the resulting damage would make the already-difficult task of supplying troops close to impossible. Note many commentators are jumping to the conclusion that the dam was destroyed (being critically damaged versus destroyed may seem too fine a point, but it can have implications for the severity of flooding). Nevertheless, a seriously big time flood is underway:If you look at the water, you can see it is rushing over the center but the dam was not taken out from side to side. What matters in terms of flood levels is how many feet down the dam has been taken out, which no one not on site can readily guess well, at least now¹. How much the water level rises below the dam depends on how low the lowest level of water restriction now is, and whether that gets eroded any further due to the action of the flood. Also keep in mind the lower Dnieper is marshy, a flood plain near its mouth. So even if the water rise is not as bad as it could have been, it will still damage a lot of terrain. The New York Times has some intel on flooding: The local Ukrainian military administration said that water downstream of the dam will reach critical levels in five hours, or around noon local time.The water level in the Kakhovka Reservoir is dropping at a rate of about 15 centimeters, or 6 inches, per hour, the military administration in Nikopol, a Ukrainian-controlled city on the shore of the reservoir, said in a statement.Ukraine’s Ministry of Interior said local authorities in 10 towns and villages and in the city of Kherson were told to prepare to evacuate residents. Some low-lying neighborhoods in Kherson city are at risk but not the entire city.Evacuations have started. From CNN:In a video statement posted on Telegram, Oleksandr Prokudin, the Ukraine-appointed head of the Kherson region military administration, said the water “will reach critical level in five hours.”…Prokudin said evacuations in the “area of danger” around the dam had started and asked citizens to “collect your documents and most needed belongings and wait for evacuation buses.”“I ask you to do everything you can to save your life. Leave the dangerous areas immediately,” he added.Units of Ukraine’s National Police and the state emergency service of the Kherson region have been put on alert to warn and evacuate civilians from potential flood zones, Ukraine’s Ministry of Internal Affairs said.Also note Twitter is full of the charge that this is a war crime….largely blaming Russia. This is on its face nonsensical. What is damaged is Kherson, territory that Russia says is now its own, even if it controls only part now, and water supplies to Crimea. The flooding is also taking out defensive fortifications and mines planted by Russia.You don’t salt land in your own territory, and Russia has taken the legal steps under its law laying claim to all of Kherson.

Dam sabotage creates Ukraine’s worst environmental disaster ‘since Chernobyl’ – Worries about a massive environmental disaster in Ukraine have long focused on the Russian-occupied Zaporizhzhia Nuclear Power Plant. But people were looking in the wrong place.The catastrophe happened early Tuesday when explosions tore through the colossal Nova Kakhovka hydroelectric dam in southern Ukraine — draining one of the Continent's largest artificial reservoirs. It forced the evacuation of thousands of people downstream, polluted land, destroyed a large electricity generator and will cause future problems with water supplies.Kyiv blames Russia, which seized control of the dam on February 24, 2022, the first day of its full-scale invasion of Ukraine. The Kremlin pointed the finger at Ukraine, but supplied no evidence.Ukraine has long warned of the danger. In October, President Volodymyr Zelenskyy called on the West to pressure Russia not to blow up the dam, which he said had been rigged with explosives. "Destroying the dam would mean a large-scale disaster," he said.But while international observers are present at Zaporizhzhia, Europe's largest nuclear power plant, that wasn't the case with Nova Kakhovka. The dam has seen months of fighting as Ukraine pushed Russian troops back over the Dnipro River last year and it now lies on the front line between the two armies. The immediate impact is on people living downstream; the western shore of the Dnipro is under Ukrainian control, while the east is still held by Russia.The Ukrainian head of the Kherson region, Oleksandr Prokudin, said as many as 16,000 people in Ukrainian-controlled territory are in danger and many would have to leave their homes.Vitaly Bogdanov, a lawmaker on the Kherson city council who lives nearby, went to see the scale of the damage on Tuesday morning. "There is no panic, rescue services are working, the police and military are everywhere," he told POLITICO, adding: "Many people are being evacuated."Bogdanov said he was not planning to leave his home as he has to look after elderly relatives.Those living in Russian-occupied territory have been left uncertain of what to do next.

At least 9 dead in Kakhovka dam collapse in Ukraine, officials say - At least nine people were killed by the devastating flooding caused by destruction of the Nova Kakhovka dam in the Kherson region of Ukraine and nine injured during the shelling the Russians did during the evacuation , local authorities said. Regional Governor Oleksandr Prokudin said the average water level is more than 5 meters and around 600 square kilometers are now flooded, mostly on the eastern bank which is occupied by the Russian troops. The accurate number of wounded from Tuesday's incident may be higher as it's nearly impossible to evacuate people from there, authorities say. The Ukrainian mayor of Oleshky, almost all of which is under water now, said 30 people were rescued and hospitalized with hypothermia. "It's a situation of despair," Prokudin told ABC News. "People were sitting on the rooftops for hours. They said the Russians just ran away." The Nova Kakhovka dam, which was built in 1956 and traverses the enormous Dnipro River in southern Ukraine, suffered an explosion Tuesday at approximately 2 a.m. local time as a deluge of water could be seen bursting through the dam that had previously held back more than 18 cubic kilometers of water -- comparable to the size of the Great Salt Lake in Utah. The dam's breach could have a massive impact on the wider war effort between Russia and Ukraine. On local telegram groups, people are begging for help and posting coordinates of their relatives' houses. One of them, Anna Molchan, told ABC News her elderly parents and their pets are still waiting for help. "They told me on the phone they are ok physically and their neighbors, old people, are on the rooftops too," she said.

Satellite Images Show Scale of Flooding From Ukraine Dam Collapse - -New satellite images released by Planet Labs late on Wednesday offer some of the clearest glimpses yet of the scale of flooding in cities and villages downstream from the Kakhovka dam in southern Ukraine, which was destroyed on Tuesday.While thousands in affected areas have been evacuated, the total number of people brought to safety remains a fraction of theroughly 41,000 on both sides of the Dnipro River who Ukrainian officials have estimated were at risk from the flooding.Floodwaters inundated low-lying neighborhoods of Kherson, the Ukrainian-held regional capital about 40 miles downstream from the dam. Waters rose about 10 feet above normal in parts of the city, reaching the rooftops of houses.Many areas on higher ground were untouched by the floodwaters, while rescuers in boats pulled stranded residents from their roofs or upper floors in neighborhoods near the river’s banks. Residents of the Russian-occupied town of Oleshky, on the eastern bank of the Dnipro, pleaded for help in chat groups and searched for missing loved ones. The exiled Ukrainian mayor of the city said the town was about 85 percent flooded.On the Telegram messaging app, a Russian official described Oleshky as the “most difficult situation” and said it was “practically completely flooded.”Korsunka, a Russian-controlled town around five miles downstream of the dam, is one of several inundated villages on the east bank. A reporter on Russia’s state-controlled Channel 1 rowed a boat through the streets of Korsunka and said that rescues were now possible only by water.

Hazardous magmatic eruption possible at Mayon volcano, Alert Level raised to 2, Philippines -The Philippine Institute of Volcanology and Seismology (PHIVOLCS) raised the Alert Level for the Mayon volcano from Level 1 to Level 2 on June 5, 2023, indicating increased volcanic unrest that may potentially precede hazardous eruptions. PHIVOLCS has reported an increase in the frequency of rockfall events from the Mayon volcano’s summit lava dome, prompting the institute to raise the volcano’s Alert Level from 1 to 2. This increase in activity suggests that there is ongoing unrest driven by shallow magmatic processes that could lead to phreatic eruptions or even precede a hazardous magmatic eruption​. Over the past month, monitoring of the volcano has shown an increase in rockfall events, rising from an average of 5 per day to 49 per day between June 4 and 5. This rise in rockfall frequency indicates the growth of the summit lava dome. As of May 9, the lava dome had increased in volume by approximately 83 000 m3 (2.9 million ft3) since February 3 and a total of nearly 164 000 m3 (5.8 million ft3) since August 20, 2022. PHIVOLCS has recorded a total of 318 rockfall events since April 1, and 26 volcanic earthquakes for the same period. Ground deformation parameters based on electronic distance measurement (EDM), precise leveling, continuous GPS, and electronic tilt monitoring show that the volcano has been inflating, particularly on the northwest and southeast, since 2020. The public is urged to remain vigilant and avoid the 6 km (3.7 miles) radius Permanent Danger Zone (PDZ) around the volcano to minimize risks from sudden explosions, rockfall, and landslides. Should ash fall events occur, residents are advised to cover their nose and mouth with a damp, clean cloth or dust mask. Civil aviation authorities are also advised to instruct pilots to avoid flying close to the volcano’s summit, as ash from any sudden eruption could be hazardous to aircraft​1​. In response to the escalating situation, the Department of Social Welfare and Development (DSWD) has directed its regional offices in Bicol to prepare family food packs as part of emergency measures. DSWD Secretary Rex Gatchalian stated that the offices have been directed to stockpile Family Food Packs and ensure that they have sufficient standby funds. The regional offices have also been tasked with tracking the number of affected families and municipalities, and the duration of the volcanic unrest​.

New eruption starts at Kilauea volcano, Hawaii - At approximately 14:44 UTC (04:44 HST) on June 7, 2023, the USGS Hawaiian Volcano Observatory (HVO) detected a glow in Kīlauea summit webcam images indicating that an eruption has commenced within Halemaʻumaʻu crater in Kīlauea’s summit caldera, within Hawai‘i Volcanoes National Park. As a result, HVO raised Kīlauea’s volcano Alert Level from Watch to Warning and its Aviation Color Code from Orange to Red as this eruption and associated hazards are evaluated. The opening phases of eruptions are dynamic, HVO said. Webcam imagery shows fissures at the base of Halemaʻumaʻu crater generating lava flows on the surface of the crater floor. The activity is confined to Halemaʻumaʻu and the hazards will be reassessed as the eruption progresses. HVO will continue to monitor this activity closely and report any significant changes in future notices. Kīlauea summit eruptive activity over the past several years has occurred at the base of Halemaʻumaʻu crater, within the closed area of Hawaiʻi Volcanoes National Park. During Kīlauea summit eruptions, the high level of volcanic gas—primarily water vapor (H2O), carbon dioxide (CO2), and sulfur dioxide (SO2)—being emitted is the primary hazard of concern, as this hazard can have far-reaching effects downwind. Passive volcanic degassing can occur from within Halemaʻumaʻu crater even during periods of no eruptive activity. As SO2 is released from the summit, it reacts in the atmosphere to create the visible haze known as vog (volcanic smog) that has been observed downwind of Kīlauea. Vog creates the potential for airborne health hazards to residents and visitors, damages agricultural crops and other plants, and affects livestock. Other significant hazards also remain around Kīlauea caldera from Halemaʻumaʻu crater wall instability, ground cracking, and rockfalls that can be enhanced by earthquakes within the area closed to the public. This underscores the extremely hazardous nature of the rim surrounding Halemaʻumaʻu crater, an area that has been closed to the public since early 2008.

China Is Drilling a 10,000-Meter-Deep Hole Into the Earth --Chinese scientists have begun drilling a 10,000-meter (32,808 feet) hole into the Earth’s crust, as the world’s second largest economy explores new frontiers above and below the planet’s surface. Drilling for what is set to be China’s deepest ever borehole began in the country’s oil-rich Xinjiang region on Tuesday, according to the official Xinhua News Agency. Earlier that morning, China sent its first civilian astronaut into space from the Gobi Desert. The narrow shaft into the ground will penetrate more than 10 continental strata, or layers of rock, according to the report, and reach the cretaceous system in the Earth’s crust, which features rock dating back some 145 million years. “The construction difficulty of the drilling project can be compared to a big truck driving on two thin steel cables,” Sun Jinsheng, a scientist at the Chinese Academy of Engineering, told Xinhua. The project will provide data on the Earth’s internal structure, while also testing deep underground drilling technologies, according to China National Petroleum Corp., which is spearheading the project. The drilling is expected to take 457 days. President Xi Jinping called for greater progress in deep Earth exploration in a speech addressing some of the nation’s leading scientists in 2021. Such work can identify mineral and energy resources and help assess the risks of environmental disasters, such as earthquakes and volcano eruptions. The deepest man-made hole on Earth is still the Russian Kola Superdeep Borehole, which reached a depth of 12,262 meters (40,230 feet) in 1989, after 20 years of drilling.

Arctic could be ice-free a decade earlier than thought - The Arctic Ocean's ice cap will disappear in summer as soon as the 2030s and a decade earlier than thought, no matter how aggressively humanity draws down the carbon pollution that drives global warming, scientists said Tuesday. Even capping global warming at 1.5 degrees Celsius in line with the Paris climate treaty will not prevent the north pole's vast expanse of floating ice from melting away in September, they reported in Nature Communications. "It is too late to still protect the Arctic summer sea ice as a landscape and as a habitat," co-author Dirk Notz, a professor at the University of Hamburg's Institute of Oceanography, told AFP. "This will be the first major component of our climate system that we lose because of our emission of greenhouse gases." Decreased ice cover has serious impacts over time on weather, people and ecosystems—not just within the region, but globally. "It can accelerate global warming by melting permafrost laden with greenhouse gases, and sea level rise by melting the Greenland ice sheet," lead author Seung-Ki Min, a researcher at Pohang University of Science and Technology in South Korea, told AFP. Greenland's kilometers-thick blanket of ice contains enough frozen water to lift oceans six meters. By contrast, melting sea ice has no discernible impact on sea levels because the ice is already in ocean water, like ice cubes in a glass. But it does feed into a vicious circle of warming. About 90 percent of the Sun's energy that hits white sea ice is reflected back into space. But when sunlight hits dark, unfrozen ocean water instead, nearly the same amount of that energy is absorbed by the ocean and spread across the globe.

Carbon dioxide is growing at near-record rate, NOAA reports - Despite rising awareness about global climate change and its devastating impacts, carbon dioxide levels keep treading in the wrong direction. This year’s annual increase of CO2 levels is one of the largest on record, representing an accumulation of the heat-trapped gases “not seen for millions of years,” scientists from the Scripps Institution of Oceanography and the National Oceanic and Atmospheric Administration said Monday. The current amount of carbon dioxide in the atmosphere is now 50 percent higher than it was before the industrial era, the NOAA and Scripps scientists said in a report. The new figures offer more evidence that global climate efforts — including transitioning from fossil fuels to cleaner energy — are falling short of what scientists say is needed to stem the warming of the planet. “Every year, we see the impacts of climate change in the heat waves, droughts, flooding, wildfires and storms happening all around us,” said NOAA Administrator Rick Spinrad in a statement. “While we will have to adapt to the climate impacts we cannot avoid, we must expend every effort to slash carbon pollution and safeguard this planet and the life that calls it home.” Carbon dioxide levels in May averaged 424.0 parts per million (ppm) — the fourth-largest annual increase since measurements began 65 years ago at the NOAA observatory in Mauna Loa, Hawaii. The highest monthly mean levels of CO2 peaks occur in May for the Northern Hemisphere — just after plants ooze the gas before growing season. May’s monthly average this year sat at 423.78 ppm, a 3.0 ppm increase over May 2022’s average. The rises in carbon dioxide levels do not astonish climate scientists who have tracked them over time. “[The findings are] disappointing, but not surprising. We’re still seeing CO2 rise at the same pace as it has for the last few decades,” Ralph Keeling, a geochemist at Scripps, told The Post. Carbon dioxide — which is generated by burning fossil fuels for transportation and electrical generation, by cement manufacturing, deforestation, agriculture and many other practices — traps heat from the planet’s surface that would otherwise escape into space. Carbon dioxide pollution, a key greenhouse gas, amplifies extreme weather events, such as heat waves, drought and wildfires, as well as precipitation and flooding.

Carbon capture and storage is ‘no free lunch’, warns climate chief | Carbon capture and storage (CCS) - Over-reliance on carbon capture and storage technology could lead the world to surpass climate tipping points, the head of the world’s climate science authority has warned. Hoesung Lee, chair of the Intergovernmental Panel on Climate Change, said using technologies that capture carbon dioxide or remove it from the atmosphere was “no free lunch” and that countries should be wary. Lee noted that the IPCC had found it was likely that global temperatures could rise by more than 1.5C above pre-industrial levels but could then be made to return to below 1.5C by the end of the century. “The jargon for that is the overshoot,” he said. “Carbon dioxide removal methods will be much in demand if that overshoot indeed occurs.” “But there will be a cost to doing that. There’s no free lunch. And that cost includes that the longer the period of overshoot, there will be additional global warming, and there will be consequences of increased warming. There is also the possibility of positive feedback from that additional warming, creating more losses and damages during the overshoot period,” he warned. “So one wishes to avoid such an overshoot scenario.” The IPCC warned in its latest comprehensive report on climate science, published in three parts from 2021 to 2022 with a fourth summary chapter delivered in March, that it was “now or never” to take action on emissions, if the world was to have a chance of avoiding the worst ravages of climate breakdown. Governments must make their own decisions on whether to use carbon capture and storage technology, Lee said, as the IPCC advised only on science, and was neutral on policy. “CCS technologies are all part of the solutions,” he told the Guardian in an interview, at in Bonn, where preparatory talks for the Cop28 UN climate summit are taking place this week and next. “The way to stay within the carbon budget is that [high-carbon] infrastructures should be equipped with some measures of emissions reductions. Our report very clearly indicates that unabated fossil fuels has to be changed, with some measures that can reduce carbon emissions.”

Bipartisan bill would lay groundwork for U.S. carbon tariffs - Senators from both parties have signed on to legislation that would calculate the emissions intensity of industrial materials produced in the United States. It’s a necessary step, advocates say, toward a carbon border adjustment mechanism, or CBAM, that would slap tariffs on carbon-intensive imports. “We need our own math,” said George David Banks, a conservative climate adviser and former climate official in the Trump administration. “The Europeans are moving forward with their own CBAM … and [they] will come up with our own math for us.” Advertisement But the effort in the Senate also underscores the challenges lawmakers face in creating a climate trade policy to harmonize with the European Union: Of the myriad CBAM frameworks currently under development on Capitol Hill on both sides of the aisle, a bill that would just mandate a study is so far the only measure that has been able to attract bipartisan consensus. “It’s easier to take a second step once you’ve taken a first step,” said Sen. Kevin Cramer (R-N.D.). “It can create a little momentum, but at the very least it creates a baseline from which to work, and it gets people thinking about it in a different context than, ‘Oh, my God, it’s a carbon tax.’” Cramer, with Sen. Chris Coons (D-Del.), on Wednesday introduced the “Providing Reliable, Objective, Verifiable Emissions Intensity and Transparency (PROVE IT) Act.” The bill would require the Department of Energy to study and determine the emissions intensity of nearly two dozen products made in the United States and by G-7 countries, free-trade agreement partners, foreign countries of concern and “countries that hold a substantial global market share for a covered product.” The list of “covered products” would include aluminum, iron, steel, plastic, crude oil, lithium-ion batteries, solar panels and wind turbines. The Energy Department would have two years to compile a report on its findings, in consultation with EPA, the U.S. Trade Representative and the Commerce and State departments. An update of the data would have to be published every five years. “Studying emissions intensity is not easy; it will take some time, it is complex, and, in particular, figuring out a fair process for imposing tariffs on countries that don’t have any transparency around their emissions is also going to be a complex part of any border carbon adjustment mechanism,” Coons said Wednesday. “So given there’s a bipartisan group that was interested in moving forward on this, I thought it was important that we introduce this piece and lay the foundation for the rest of the conversation.” Coons has introduced more comprehensive CBAM proposals in the past, while Cramer confirmed this week he is continuing to work on crafting a “trade deal” that could be reconciled with what the European countries are already doing. Joining Coons and Cramer as original co-sponsors of the bill are Sens. Angus King (I-Maine), Lisa Murkowski (R-Alaska), Martin Heinrich (D-N.M.), Lindsey Graham (R-S.C.), John Hickenlooper (D-Colo.)., Sheldon Whitehouse (D-R.I.) and Bill Cassidy (R-La.).

Rich countries with high greenhouse gas emissions could pay $170tn in climate reparations -Rich industrialised countries responsible for excessive levels of greenhouse gas emissions could be liable to pay $170tn in climate reparations by 2050 to ensure targets to curtail climate breakdown are met, a new study calculates. The proposed compensation, which amounts to almost $6tn annually, would be paid to historically low-polluting developing countries that must transition away from fossil fuels despite not having yet used their “fair share” of the global carbon budget, according to the analysis published in the journal Nature Sustainability. The compensation system is based on the idea that the atmosphere is a commons, a natural resource for everyone which has not been used equitably. It is the first scheme where wealthy countries historically responsible for excessive or unjust greenhouse emissions including the UK, US, Germany, Japan and Russia, are held liable to compensate countries which have contributed the least to global heating – but must decarbonise their economies by 2050 if we are to keep global heating below 1.5C and avert the most catastrophic climate breakdown. In this ambitious scenario, the study found that 55 countries including most of sub-Saharan Africa and India would have to sacrifice more than 75% of their fair share of the carbon budget. On the other hand, the UK has used 2.5 times its fair allocation, and would be liable to pay $7.7tn for its excessive emissions by 2050. The US has used more than four times its fair share to become the richest country in the world, and would be responsible for $80tn in reparations under this scheme. “It is a matter of climate justice that if we are asking nations to rapidly decarbonise their economies, even though they hold no responsibility for the excess emissions that are destabilising the climate, then they should be compensated for this unfair burden,” said Andrew Fanning, lead author and visiting research fellow at the University of Leeds’s Sustainability Research Institute. In order to keep global heating to below 1.5C, the total global carbon budget starting from 1960 is 1.8tn tonnes of CO2 or equivalent greenhouse gases, according to Intergovernmental Panel on Climate Change (IPCC) figures. Using population size, researchers calculated how much 168 countries have over- or under-used their fair share of the global carbon budget since 1960. Some countries were within their fair share allocation, while the global north (the US, Europe, Canada, Australia, New Zealand, Japan, and Israel) have already massively overshot their fair share of the atmospheric commons. Almost 90% of the excess emissions are down to the wealthy global north, while the remainder are from high-emitting countries in the global south, especially oil-rich states such as Saudi Arabia and United Arab Emirates. Five low-emitting countries with large populations – India, Indonesia, Pakistan, Nigeria and China (currently the world’s largest emitter) – would be entitled to receive $102tn, for sacrificing their fair share of the carbon budget in the zero emissions scenario.

Study: US owes $80 trillion in climate reparations --Countries like the United States and those in Europe could be on the hook for an eye-popping $170 trillion in climate reparations for their excessive carbon emissions, according to new research from the University of Leeds. The study highlights inequities in the remaining carbon that the world can emit before invoking even more catastrophic climate events. Wealthier countries like the U.S, United Kingdom, and Germany are not only responsible for the largest share of current and historic emissions, but they are also on track to overshoot their existing carbon budgets, or the amount that the world can emit before exceeding the current global target of 1.5 degrees C(about 2.7 degrees F) of warming. Researchers used estimates from the Intergovernmental Panel on Climate Change, a group of experts assembled by the United Nations, to measure the total global carbon budget as well as a country’s individual budget. They also looked at the deep cuts in emissions that countries in the Global South will have to make if they are to counteract the countries that use more than their fair share, and the study attempts to quantify the dollar amount that would properly compensate them for it.“The problem is that the Global North would be overshooting its collective fair share of the 1.5-degree carbon budget by nearly three times,” said Andrew Fanning, the study’s lead author and a visiting research fellow at the University of Leeds. “And, of course, if some countries are overshooting, then other countries need to pick up the slack.”The study found that the U.S. would be responsible for the largest share, $80 trillion, for its excess emissions, which would be paid out to historically low emitters like India and China as well as regions like sub-Saharan Africa. The oversized carbon footprint of wealthier nations has been an ongoing roadblock in the race to cut emissions and curb the worst impacts of climate change. Researchers sought to quantify how much excess emissions would cost and used the existing framework from the IPCC to price out the difference in emissions.

Finding Ways to Get Polluters to Pay for Climate Damages --The biggest achievement at the annual United Nations climate summit last year was committing to create a fund that would compensate the poorest for destruction wrought by global warming. One of the questions at the upcoming COP28 summit will be how to add money to this new loss-and-damage fund.If history is any guide, it’s going to be a hard problem to solve. In 2009, rich countries promised to provide $100 billion annually to poor countries to fund projects that reduce emissions and avoid climate impacts. By 2020, the deadline to reach that sum, the amount transferred that year stood at just $83 billion. And most of that total came in the form of loans rather than grants, according to an Oxfam report published this week.Avinash Persaud, a Barbados economist who is the island nation’s special envoy on investment and financial services, says a creative solution is gaining traction. It’s rooted in a more successful history of wealth transfers from emitters to victims. He wants to impose a small fee on the world’s oil buyers to fund loss-and-damage payments for poor countries ravaged by floods, fires, storms and heat waves.The proposal is modeled on the International Oil Pollution Compensation Funds, which date back to 1971 and continue to function today. The funds work by charging a very small fee to more than 120 member countries for every barrel of oil they import only when the pots need to be replenished. If there ever is an oil spill anywhere in the world, IOPC funds can be made available for clean-up costs of up to $250 million (with some countries paying extra for protection of up to $1 billion).“The world has been waiting decades for a loss-and-damage fund,” says Persaud. By contrast the IOPC mechanism came about “in just few years.”The IOPC funds were created after the Liberian tanker Torrey Canyon struck a rock in 1967 on its way to the UK. That oil spill caused pollution both on British and French shores that required an expensive clean-up operation. In more than 50 years of existence, IOPC has dealt with more than 150 incidents and paid out £750 million ($930 million). And the number of annual oil spills requiring IOPC funds to intervene has been falling for decades.Persaud’s trial balloon is part of the latest attempt to reset the conversation on climate finance under the leadership of Barbados Prime Minister Mia Mottley. She launched her Bridgetown Initiative last year to overhaul the global financial architecture to address growing inequality, climate change, and loss of biodiversity. At asummit in Paris later this month, alongside French President Emmanuel Macron, Mottley hopes to convince the richest countries to support a series of initiatives aimed at reforming existing multilateral development banks (MDBs), such as the World Bank and the International Monetary Fund, to address today’s biggest problems.

US Treasuries Blacklisted by German State as ESG Law Takes Hold -- For an illustration of how wildly different the debate around ESG is in Europe and the US, look no further than the German state of Baden-Württemberg. One of the richest regions in Europe’s biggest economy, and the home of Mercedes-Benz Group AG as well asRobert Bosch GmbH, adopted a law this year that puts investing sustainably on par with more traditional criteria such as profitability and liquidity. It’s a decision that may affect as much as a fifth of the state’s €17 billion ($18 billion) of holdings, as it pivots away from ESG laggards.Few outside Germany paid much attention to the law when it was passed. But it turns out the legislation has international ramifications. That’s because the new environmental, social and good governance filters have resulted in US Treasuries ending up on an investing blacklist, due to America’s failure to ratify a number of treaties in areas including women’s rights and controversial weapons. Other nations to be singled out by the policy include Finland, Latvia and Greece.The bulk of Baden-Württemberg’s exclusions impact its equity and corporate bond portfolios. The law establishes the United Nations Sustainable Development Goals, the European Union’s Taxonomy Regulation and the Paris Agreement on climate change as the basis for future investment decisions. The practical investment implications of the law are limited when it comes to US Treasuries, because the German state’s holdings weren’t significant to start with. In fact, German holdings of US Treasuries overall account for a tiny fraction of the market, or just $85 billion of the $24 trillion in outstanding debt, according to the latest data. And there’s little to indicate that investors’ ESG considerations in general have left any kind of dent on the US Treasury market.Relying on international treaties to determine portfolio exclusion lists is “kind of a blunt approach,” Arnim Emrich, head of Baden-Württemberg’s treasury and asset management unit, said in an interview. “But it’s the only proxy we have that is simple and objective.” In many ways, the investment approach is the polar opposite of a framework that Republican-led states are currently trying to create in the US. ESG principles have been vilified by senior members of the GOP, including presidential candidate Ron DeSantis, who wants to eradicate ESG and the “woke ideology” he says it represents. In the US, banks and financial firms are nowquietly burying their use of the acronym, and more than a dozen US state governors want to prohibit the use of ESG in all investment decisions.

What climate change means for the federal debt -Climate change is going to add significantly to the federal debt. The big question is how much. White House economists have spent the first two years of the Biden administration beginning to answer that question so the government can make better decisions about budgeting and spending. A warming world means more federal spending on disaster relief and recovery, health care and the repair and replacement of vital infrastructure. Economists expect it to take a toll on the broader economy — and, in turn, the tax base. The clean energy transition will also tax federal coffers, though there are economists who expect the Treasury to see some upside. And that’s before accounting for areas of the federal budget where the role of climate change may be harder to tease out, such as the demands placed on the military and on humanitarian budgets by a less stable, climate-stressed world. “This is why climate change is an existential threat, because it affects every aspect of our world, literally,” said Cecilia Rouse, who recently stepped down as the chair of the White House Council of Economic Advisers. “And to understand and disentangle and to quantify every relationship is really a challenge.” Meeting that challenge will make federal budget projections more realistic. It’s also likely to show that climate change will strain federal resources and fuel more political fights like the one that Washington just played witness to over the debt ceiling. Republicans and Democrats alike spent the spring rehashing responsibility for today’s $31.4 trillion federal debt, armed with comprehensive analysis about the budgetary implications of the budgetary implications of the war on terror, former President George W. Bush’stax cuts and their extensions and President Joe Biden’s spending bills. But climate change wasn’t part of the discussion.

Virginia air board votes to leave interstate carbon-capping alliance opposed by Youngkin --Virginia’s State Air Pollution Control Board on Wednesday voted 4-3 to exit a regional carbon emissions reduction program, a move backed by Gov. Glenn Youngkin (R) but rebuked by the state General Assembly. The board, a majority of whom are Youngkin appointees, voted at the Wednesday meeting in favor of withdrawing from the Regional Greenhouse Gas Initiative (RGGI), a program that issues tradable carbon-dioxide allowances and limits power plant emissions in participating states. Other participating states include Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island and Vermont. The General Assembly voted to join RGGI in 2020 under Youngkin’s predecessor, Gov. Ralph Northam (D). Youngkin has long opposed the state’s participation in RGGI, calling it a fee passed on to customers of the state electric utility, and vowed to pull Virginia out shortly after his election in 2021. In January 2022, shortly after his inauguration, he signed an executive order directing the state Department of Environmental Quality to explore withdrawal. The General Assembly, where Democrats lost control of the House of Delegates the same year but still hold a majority in the state Senate, has argued that only another piece of legislation can withdraw the state. The chamber voted down a withdrawal bill in January.

Virginia air board approves withdrawal from regional carbon market - The State Air Pollution Control Board took its final step to withdraw Virginia from a regional carbon market, sending the action to Republican Gov. Glenn Youngkin’s office for final action, despite a majority of public commenters continuing to oppose the move. Following a 30-minute closed session to discuss possible litigation against the decision, the board voted 4-3 to adopt the regulation withdrawing the state from the Regional Greenhouse Gas Initiative. All Youngkin appointees voted in support of the measure, while all three appointees of former Democratic Gov. Ralph Northam voted against it. The market, known as RGGI, requires electricity producers to buy allowances in quarterly auctions for every ton of carbon they emit. In Virginia, existing state law requires the proceeds from the sales, which have totaled more than half a billion dollars since the state began participating in auctions in 2021, to go toward flood resiliency and energy efficiency efforts. Secretary of Natural and Historic Resources Travis Voyles on Wednesday reiterated the Youngkin administration’s argument that the allowance costs passed on by the state’s electric utilities to customers constitute a hidden tax. Dominion Energy, Virginia’s largest electric utility, previously added a separate charge to customer bills for the allowance costs, which increased monthly residential bills by $2.39 on average. The company briefly suspended the fee but is now seeking to reinstate it. “Mr. Chairman and members of the board, that is called a tax,” said Voyles. The administration began the process of withdrawing Virginia from RGGI through regulatory approval last year, though opponents say legislative change is needed. The action by the board Wednesday sends the withdrawal regulation to the administration, which then must publish it in the Virginia Register. Thirty days after publication, the regulation will go into effect. “Today’s common sense decision by the Air Board to repeal RGGI protects Virginians from the failed program that is not only a regressive tax on families and businesses across the Commonwealth, but also does nothing to reduce pollution,” said Youngkin in a press release following the vote. Voyles told the Mercury after the meeting that the publication of the regulation in the register occurs at the discretion of the administration, but that it will likely happen “sooner rather than later.” Officials have said part of the intent of pursuing the pullout through the regulatory process was to line up the withdrawal with the end of the state’s contract with RGGI, Inc., the nonprofit that oversees the operation of the market, which is set to expire at the end of this year. The publication of the regulation in the register is expected to trigger the filing of legal challenges to the withdrawal.

U.N. panel distances itself from carbon removal criticism - An influential United Nations panel signaled recently that it remains open to the idea of using carbon removal machines as one possible remedy for global warming — a stance that distances the panel from earlier criticism of the technology. A note sent to the same U.N. panel last month from the U.N. climate secretariat raised concerns with engineered carbon removals, calling the approach “technologically and economically unproven.” The note sent shock waves through the carbon removal industry, and it prompted an industry trade group to write the U.N. an open letter in response. Following the backlash, the U.N. panel clarified it was still working to determine what types of carbon removal techniques it would endorse. “I don’t want to create an impression that we haven’t been struck by the strength of the response. And that it that hasn’t made a difference,” Olga Gassan-zade, the chair of what’s known as the Article 6.4 Supervisory Body, said during its meeting last week. “It did. It was very helpful.” The panel is tasked with drawing up the rules for how an international carbon trading program operates under a mechanism known as Article 6.4. It’s a part of the Paris Agreement aimed at helping countries achieve their emission reduction targets through a global carbon market that would allow companies to offset some of their emissions by funding a renewable energy project, for example, and then trading the offsets the project generates. Part of that process involves crafting a set of recommendations about which carbon removal processes should be eligible and the means by which they would receive credits. One way to remove carbon dioxide from the air and sea is through approaches like planting trees, which naturally pull in CO2 and sequester it. The other way is through CO2 removal technology, or CDR, that uses things like fans and filters to draw in CO2 and pump it underground.

UN climate chief calls fossil fuel phase out key to curbing warming but may not be on talks' agenda The world needs to phase out fossil fuels if it wants to curb global warming, the United Nations climate chief said in an interview with The Associated Press. But he said the idea might not make it on to the agenda of “make-or-break” international climate negotiations this fall, run in and by an oil haven. A phase out of heat-trapping fossil fuels “is something that is at top of every discussion or most discussions that are taking place,” U.N. climate Executive Secretary Simon Stiell said. “It is an issue that has global attention. How that translates into an agenda item and a [climate talks] outcome we will see.” Stiell told AP he couldn't quite promise it would get a spot on the agenda in climate talks, called COP28, in Dubai later this year. That agenda decision is up to the president of the negotiations, Stiell said. He is the head of the state-owned Abu Dhabi National Oil Company, Sultan al-Jaber. The decision by host nation United Arab Emirates to make al-Jaber the head of the climate conference has drawn fierce opposition from lawmakers in Europe and the United States, as well as environmental advocates. UAE officials said they want game-changing results in the climate talks and note that al-Jaber also runs a large renewable energy company. Last year at climate talks, a proposal by India to phase out all fossil fuels, supported by the United States and many European nations, never got on the agenda. What gets discussed is decided by the COP president, who last year was the foreign minister of Egypt, a natural gas exporting nation. When asked if Egypt's leaders kept the concept off the agenda, Stiell, speaking via Zoom from Bonn, Germany, where preliminary talks start Monday, said he couldn't comment except to say that “it's within their purview.”

Report: Conservation leasing could speed clean energy development on public land -Conservation leasing is one element of the Bureau of Land Management’s proposed Public Lands Rule, and a new report says such a policy could aid the development of clean energy.The report is from the progressive Center for American Progress and notes that when developers propose clean energy projects like solar and wind farms, they can be required to carry out so-called “compensatory mitigation.” That could be habitat restoration to make up for damage caused by the project.Such mitigation often happens on private lands, sometimes far from the project. The proposed rule would open the door for renewable energy-related mitigation on BLM land. The report argues that the Biden administration’s plan to permit 25 gigawatts of clean energy projects on public lands by 2025 makes the prospect of conservation leasing even more important.“When you're talking about deploying a lot more clean energy across public lands, particularly in places where there may not be as much private land available or private land values are high, it can make a lot more sense financially for a company,” report author Drew McConville told the Mountain West News Bureau.Industry has criticized the conservation lease proposal, voicing concern that it would block access to oil and gas.“BLM’s proposed rule goes far beyond the authority Congress granted BLM and is simply unlawful,” Western Energy Alliance President Kathleen Sgamma said in a statement, adding that the 1976 Federal Land Policy and Management Act “gives some conservation authority to BLM, but not in the broad way that BLM is trying to stretch it. If finalized as proposed, this rule is extremely legally vulnerable.” Public comment on the BLM rule is open until June 20.

One path to more power lines? Make US grid operators share more - If there’s one thing the U.S. does not need, it’s another yearslong study showing that the addition of more big power lines connecting different regions of the country could help prevent extreme-weather-driven blackouts. But that’s exactly what the debt ceiling bill that Congress passed on Friday has ordered. Now grid experts are worried that a legislative mandate meant to help expand and strengthen the U.S. power grid could actually delay the hard work needed to realize a truly nation-spanning transmission network. “The concern is, we know this is needed,” Christina Hayes, executive director of Americans for a Clean Energy Grid, said of interregional transmission. Study after study from groups such as the U.S. Department of Energy, the Massachusetts Institute of Technology and Princeton University has provided plentiful evidence of the cost-saving, clean-energy-expanding and blackout-preventing potential of expanding the capacity for moving energy from where it’s in ample supply to where it’s desperately needed. More regional transfer capacity is also vital to the U.S. hitting its clean energy goals, said Hayes, whose advocacy group represents utilities, clean energy and transmission developers, and environmental and labor organizations. It takes many years to build new power lines, and anything that threatens to slow down progress could make things worse. The DOE has a set of national transmission studies due this year that is expected to bolster the case for interregional power lines, Hayes said. The draft report released in March highlighted the value of being able to move power from resource-poor to resource-rich regions, particularly during extreme weather events. DOE’s draft study also demonstrates that there are significant gaps between existing interregional transfer capacity and the amount needed to reach 70 percent carbon-free electricity by 2030 and 95 percent carbon-free electricity by 2035. The U.S. government has at least one big lever to pull to accelerate these key transmission projects: setting minimum transfer requirements between regional transmission organizations. The Federal Energy Regulatory Commission (FERC) has already opened an investigation into whether it should mandate these minimum power-sharing levels, Hayes said. While that FERC process is expected to stretch into late 2023, bills proposed by Democrats in Congress this year would explicitly order FERC to take on this task. But with the passage of the debt ceiling bill, ​“we’re worried we’re going to have another two and a half years of delay on these efforts,” she said.

Commercial energy consumers weigh in on possible Pleasants Power sale — With the sale of the Pleasants Power Plant possible, an organization representing commercial and industrial electric customers in West Virginia believes it is inappropriate for state regulators to consider a possible plan by two electric companies to keep the plant functioning at the expenses of ratepayers. But the state Public Service Commission’s original April order allowing negotiations between Akron-based FirstEnergy Corp. subsidiaries Monongahela Power Co. and Potomac Edison Co. with Texas-based Energy Transition and Environmental Management — the owners of Pleasants Power — to operate the plant for a 12-month period stands after environmental and consumer advocate groups petitioned the PSC to reconsider its order. The West Virginia Energy Users Group (WVEUG) filed a response Friday with the PSC to a status report filed May 24 by Mon Power/Potomac Edison in their ongoing negotiations towards a letter of intent with ETEM to maintain Pleasants Power for 12 months while the two electric companies consider a purchase of the plant. In that May 24 status report, Mon Power/Potomac Edison revealed that ETEM was also in talks with California-based Omnis Fuel Technologies to purchase Pleasants Power to produce hydrogen instead of generating electricity from burning coal. Hydrogen is a clean fuel that can be used for industrial production, heavy transportations, and energy fuel cells. Energy Harbor, the former owners of Pleasants Power, have been leasing the plant from ETEM with the plant slated to shut down by Friday. But in a letter last Wednesday to regional wholesale energy transmission company PJM Interconnection, Energy Harbor requested a change from Pleasants Power’s status from “deactivated” to “mothballed” through July 31. According to the Mon Power/Potomac Edison PSC filing, a purchase agreement between ETEM and Omnis would need to be signed by Saturday, June 10, and close the transaction by July 31.

Ohio Natural Gas-Fired Generation Added as Pennsylvania Shutters Another Coal Plant - Pennsylvania’s largest coal-fired generating station is shuttering operations on July 1 after years of competing with increasing natural gas-fired generation. The 1,888-MW Homer City Generating Station by EME Homer City Generation LP began operating in 1969. A third unit was added in 1977. Over the years, however, natural gas supplied by the Marcellus and Utica shales has taken the lion’s share of power generation in the Keystone State. The Energy Information Administration (EIA) said “coal plants have struggled to effectively compete in competitive U.S. power markets against newer, more efficient natural-gas fired, combined-cycle power plants (CCPP).” The Homer City plant, serving parts of New York and Pennsylvania, dropped to 20% capacity last year. Operating the plant, EIA said, “became less competitive economically.” Houston-based NRG Energy Inc., which helps operate the plant, said about 130 employees would be affected by the closure. Spokesperson Dave Schrader told NGI that “reductions will be phased beginning in July. NRG will continue to operate the plant until retirement with safety as its top priority and in full compliance with all applicable laws and regulations.” Earlier this month, PJM Interconnection, the regional transmission operator for 13 mid-Atlantic and Northeast states including Pennsylvania, reported coal supplies comprised less than 12% of Pennsylvania’s electricity load, with natural gas generating more than 45%. PJM said the region has “benefited from the proximity to the Marcellus Shale…This local fuel supply decreased the prices for spot market natural gas in much of the PJM region, and prices…often trade at negative basis to the Henry Hub spot price.” About 4.1 GW of natural gas-fired plant proposals are in the connection queue, according to PJM. Meanwhile, independent power generator Caithness Energy LLC has started up operations at the 1,875-MW natural gas-fired CCPP in Guernsey County, OH. The Guernsey station is near Marcellus and Utica production in Ohio. “It will provide reliable energy with minimal impact on the environment by utilizing a significantly more efficient technology to produce energy, thereby significantly lowering carbon and other emissions compared to older plants and utilizing a dry cooling system that reduces water use by 95% compared to older facilities.” While gas is the mainstay fuel for the Guernsey station, General Electric Gas Power Americas CEO Dave Ross noted that the gas turbines are capable of running on natural gas-hydrogen blends of up to 20% hydrogen. The company plans to transition the turbines to “100% hydrogen over the next decade.”

Republican lawmakers are making it harder for power companies to close coal plants. Their constituents may be paying the price — Coal plants that have powered America for generations are increasingly on the chopping block, as utilities around the country move to take advantage of new federal incentives and turn to often-cheaper alternatives like natural gas and renewables. But in some of the most coal-dependent states, there’s something standing in the way: state lawmakers. Republican legislators and state officials are making it harder for power companies to retire coal plants even when it makes clear economic sense to do so – propping up the ailing industry at the cost of higher energy prices for their constituents. While natural gas and renewable prices have fluctuated in recent years amid impacts from the war in Ukraine, supply chain issues and inflation, experts say coal is typically more expensive than the alternatives. New federal environmental regulations and incentives for renewable energy passed by the Biden administration are expected to accelerate the trend. Considering the mounting costs to operate aging coal plants, the pivot away from coal is increasingly “a no-brainer for utilities and customers,” A report his firm released earlier this year found that it would be cheaper to switch 99% of coal plants around the US to renewable energy sources than it would be to keep them running. “Policymakers really need to recognize that coal is not competitive,” “There’s little to nothing they can do to permanently stop the trend that’s moving away from coal.” That hasn’t stopped them from trying. A new law passed in West Virginia in recent months requires utilities that want to close coal plants to get approval from a state panel that includes former coal lobbyists – one of whom led the West Virginia Coal Association for nearly 30 years. The bill was signed by the state’s governor, Jim Justice, whose huge family fortune comes from the coal industry. In neighboring Kentucky, a fight over protecting coal has directly pitted Republican lawmakers against the state’s biggest power companies. State legislators pushed through a similar bill this spring that would make closing coal-fired plants more challenging, over the objections of utilities. The state’s largest power company is now testing the new law as it moves forward with a plan to retire several coal generating units, which it says will save ratepayers hundreds of millions of dollars. Meanwhile, in Indiana, Montana, Utah, and Wyoming, state legislators have passed or are considering legislation that would slow closures of coal plants, allow utilities to charge ratepayers for the costs of certain federal mandates, or allocate money to pursue litigation over local and federal regulations that aim to diminish the coal industry.

States fight to save coal plants as EPA cracks down - A new rule proposed last month by EPA could spell the end of coal-fired power plants as they currently exist. But not if some states have their way. As utilities transition from coal to cleaner-burning natural gas and renewable energy, legislatures in some legacy coal states have stepped into the fray. Utah and Kentucky passed laws this year to make it harder for state regulators to approve utility plans retiring coal plants. In West Virginia, a new law will require the state to sign off before a utility can retire a coal or gas plant. Wyoming has enacted mandates in recent years to push utilities to explore selling coal plants or installing carbon capture technology before shutting them. Montana, meanwhile, passed a sweeping law that bars climate analyses for new power plants. Legal experts question whether the states’ efforts will make much of a dent in EPA’s work to clean up the power sector, which accounts for a quarter of the country’s greenhouse gas emissions. But they could set the groundwork for some operators to push forward on novel carbon capture and storage (CCS) technology that may keep power plants open and in compliance with federal regulations. Or they could preview the intense political and legal fights to come. “A lot of states are making clear that the carbon rule and the other environmental rules are going to wreak havoc,” said Michelle Bloodworth, CEO of the pro-coal trade group America’s Power. “States with a lot of generation are sounding huge alarms and warnings, and that’s why they’re passing legislation and are going to get involved in litigation.” In Utah, Republican majorities in the state Legislature passed a law known as the Energy Security Amendments — H.B. 425 — this spring to dictate the state’s responsibility to ensure citizens have affordable and reliable power generation. If any power-generating source is forced to retire early because of federal mandates, the law also authorizes the state attorney general to use taxpayer dollars to defend it in court. The law applies to any energy source, not just coal. But sponsors have tied its goals to the Intermountain Power Project, the state’s largest coal plant, which is set to retire in 2025. Utah state Rep. Ken Ivory (R), the law’s sponsor, told E&E News the goal is to “keep the lights on, keep people safe and healthy and keep the economy moving” in a rapidly changing electricity sector. EPA’s proposed power plant rule seeks to slash emissions from new and existing coal- and gas-fired power plants, pushing owners to either close them or outfit them with carbon capture technology or clean hydrogen fuel. The requirements change depending on the plant’s use and technology, but the largest plants would have to either close or capture emissions by 2040. Under the proposal — which could change before it is finalized — states would have to craft compliance plans to be approved by EPA. That’s designed to give states some flexibility to ensure reliability or meet their own regulations. But that doesn’t mean states can rely on their pro-coal leanings to propose plans that wouldn’t slash coal emissions as quickly as the EPA wants, said Stacy Tellinghuisen, deputy director of policy development for Western Resource Advocates.

Capito demands hearings on EPA plan to shutter coal-and-gas fired plants | News - U.S. Senator Shelley Moore Capito, R-W.Va., is asking for additional public hearings to be scheduled on a far-reaching federal Environmental Protection Agency plan that would force the closure of additional coal-and gas-fired power plants. Capito, the Ranking Member of the Senate Environment and Public Works Committee, joined 27 of her colleagues Thursday in urging EPA Administrator Michael Regan to extend the agency’s public comment period for its latest set of proposed power plant regulations. The latest rules were announced by the Biden administration in May, and Capito has already said she plans to try to overturn them through the Congressional Review Act. She says the EPA has provided only limited opportunities to date for public input on the controversial plan. “Through the currently announced rulemaking process, the EPA has provided minimal opportunity for public input,” the 27 senators wrote in the letter to Regan. “In the most recent proposal, only one virtual public hearing was announced along with 60 days of public comment. The EPA’s engagement on the Clean Power Plan 2.0 contrasts starkly with past rulemakings of the power sector under Section 111 of the Clean Air Act. For example, there have always been multiple public hearings associated with power sector regulations, and comment periods have been as long as 165 days for the proposed Section 111(d) rule in 2014 and 192 days on the proposed repeal of the Clean Power Plan in 2018. The Agency’s decision to limit severely opportunities for public input in comparison to past rulemakings is especially troubling because the Clean Power Plan 2.0 is a much broader effort with more expansive effects. The American people and the communities we represent must have adequate time to review, reflect, and comment on the proposal and its far-reaching impacts.” The EPA has scheduled no public hearings to date on the plan in either West Virginia or Virginia. Senators who signed on to Capito’s letter include Senators John Barrasso (R-Wyo.), John Boozman (R-Ark.), Katie Britt (R-Ala.), Ted Budd (R-N.C.), Bill Cassidy (R-La.), John Cornyn (R-Texas), Kevin Cramer (R-N.D.), Mike Crapo (R-Idaho), Ted Cruz (R-Texas), Steve Daines (R-Mont.), Deb Fischer (R-Neb.), Lindsey Graham (R-S.C.), John Hoeven (R-N.D.), James Lankford (R-Okla.), Mike Lee (R-Utah), Cynthia Lummis (R-Wyo.), Roger Marshall (R-Kan.), Pete Ricketts (R-Neb.), Jim Risch (R-Idaho), Mike Rounds (R-S.D.), Eric Schmitt (R-Mo.), Tim Scott (R-S.C.), Dan Sullivan (R-Alaska), Thom Tillis (R-N.C.), Tommy Tuberville (R-Ala.), JD Vance (R-Ohio), and Roger Wicker (R-Miss.). Noticeably absent from the list is Democrat Joe Manchin of West Virginia, who works with Capito in the U.S. Senate.

The Zaporizhzhia nuclear plant used water from the destroyed Nova Kakhovka dam. What happens now? - One of the world's largest nuclear power plants relies on a water reservoir linked to the destroyed Nova Kakhovka dam.So what does that mean for the Zaporizhzhia Nuclear Power Plant? The main line of water used at the plant is pumped out of the reservoir above the dam, and up to the site.This reservoir is currently draining because the downstream dam has collapsed.The dam wall, built to hold back a body of water the size of 36 Sydney Harbours, was blown up on Tuesday. It unleashed a flood of water across the war zone, prompting evacuations, destroying villages and endangering supplies of clean water and crops.Each side of the war has blamed the other for destroying the key piece of infrastructure in Russian-controlled part of southern Ukraine and for causing the mega flood. There are several resources at the plant that depend on water supplies for essential cooling. The reservoir above the dam provides water to reduce heat from six reactors, as well as spent fuel and emergency diesel generators.But Zaporizhzhia was placed in a cold shutdown in September 2022. While it doesn't need the large amounts of water it would while operating normally, it still needs some supplies for cooling. Dwindling water supplies also complicate any future prospects of restarting the power plant.

Ohio proposal seeks to promote advanced nuclear power A proposal to create a new state authority promoting Ohio as a leader in advanced nuclear technology has resurfaced in the state’s two-year budget bill.The amendment would establish a nine-member, governor-appointed board to oversee a new Ohio nuclear development authority aimed at boosting research and development of advanced nuclear reactors, commercial isotope production, and nuclear waste reduction and storage technology. The group’s initial funding would be $750,000.The provision is similar to stand-alone legislation that has failed to pass three times since 2018. State Rep. Dick Stein, R-Norwalk, was the primary sponsor of the previous bills, although it was unclear whether he submitted the language for the current budget bill. Stein did not respond to emails or phone calls last week from the Energy News Network.Anti-nuclear activists were critical of the proposal itself, as well as its inclusion in the 5,559-page budget bill — an indication that it can’t “stand on its own two feet,” said Chris Trepal, a member of the Ohio Nuclear-Free Network and a previous executive director of the Earth Day Coalition in Cleveland.“I don’t want to say it’s sneaky, but it’s just a way to get that job done, which they could not do as a freestanding bill,” Trepal said.Previously, Stein has said he wanted an Ohio nuclear development authority set up so it could assume some responsibilities from the federal government to develop small nuclear reactors and isotopes, thus promoting jobs in the state. The first two versions of the proposal in 2018 and 2019 would have authorized spending up to $1 million per year by a nonprofit corporation. Stein also sponsored the proposal’s third incarnation,House Bill 434. The Ohio Nuclear-Free Network at the time called the bill a “radioactive taxpayer subsidy.” That bill passed in the House last year but failed to move out of committee in the Senate. This year’s budget bill passed in the House in late April and is now before the Senate Finance Committee, with multiple hearings scheduled this week. Critics question the financial wisdom of the state getting into the business of promoting and developing advanced nuclear technology, which generally refers to small nuclear reactors.“It creates a lot of potential risks for ratepayers and taxpayers in the state of Ohio,” Trepal said. The bill is vague on the agency’s authority and who, if anyone, would provide oversight. “It allows them to create all kinds of different proposals for reactors and for dealing with all kinds of waste and reusing it. … We have plenty of radioactive waste in the state of Ohio. And we don’t need more.”The bill, if passed, would place the new nuclear authority within the Ohio Department of Development. State lawgives the director of development broad discretion to contract with JobsOhio, a state-created nonprofit organization. An Ohio statute exempts JobsOhio from the state’s public records law, and the Ohio Supreme Court hasallowed that exception.

GCA to build PET recycling plant in Ohio - PTTGC America (GCA), the U.S. subsidiary of integrated petrochemical and refining conglomerate PTT Global Chemical Public Co. Ltd. of Thailand, has chosen a site at the Midwest Mega Commerce Center in southern Ohio’s Fayette County for a facility that will recycle polyethylene terephthalate (PET) bottles into pellets that can be made into new beverage bottles and other products. GCA says it has reached an option agreement with Martin Land Co. allowing it to purchase land at the 2,300-acre commerce park on the east side of Interstate 71 near U.S. Route 35. (The Midwest Mega Commerce Center also is where Honda and LG Energy Solution are jointly developing a plant to manufacture batteries for Honda and Acura electric vehicles.) It is about 40 miles southeast of Columbus, Ohio, and 70 miles northeast of Cincinnati. “Aligned with the Paris Agreement, GC Group aim[s] to reduce current CO2 emissions by 20 percent by 2030 as part of our journey toward achieving Net Zero by 2050,” says CEO Panod Awaiwanond. “This project illustrates our commitment to fight climate change and contribute to a circular economy. It also reaffirms our commitment to the U.S. and the state of Ohio.” The company has additional development plans in Ohio for a petrochemical complex in Belmont County’s Mead Township on the Ohio side of the Ohio River. Since September 2015, GCA has been investing in front-end engineering design work to determine the feasibility of the complex. The company says it has selected this location because it is within the Marcellus and Utica shale regions and offers access to major highway, rail, pipeline and port infrastructure that would increase efficiency while reducing the environmental and financial costs of transportation. The company says a final investment decision on the project has not been made. The PET recycling project is in the study and preparation phase, according to GCA, which plans to purchase PET scrap primarily from material recovery facilities in Ohio and surrounding states. GCA says the plant will divert approximately 40,000 tons of plastic per year, reducing greenhouse gas emissions by up to 50,000 tons of CO2-equivalent per year, a 79 percent reduction compared with the production of virgin PET from hydrocarbons.

Ohio lawmakers attempt repeal of scandal-ridden coal plant subsidies — Ohio lawmakers are going over the House Speaker’s head to repeal the scandal-ridden bill that forces ratepayers to spend millions funding “dirty” coal plants, a move that comes as former House Speaker Larry Householder awaits his sentencing in the largest corruption scandal in state history, A discharge petition has been filed to put HB 120 on the floor. It would repeal scandal-ridden HB 6.A jury found that Householder and former GOP leader Matt Borges, beyond a reasonable doubt, participated in the largest public corruption case in state history, a racketeering scheme that left four men guilty and another dead by suicide.Householder passed a nearly $61 million scheme to pass a billion-dollar bailout, House Bill 6, at the expense of taxpayers and at the benefit of his pockets.H.B. 6 mainly benefited FirstEnergy's struggling nuclear power plants, which provisions were later repealed. There are remaining aspects of the bill still in place, though.The Ohio Valley Electric Corporation (OVEC) also got a handout from the scandal. It expanded a bailout of the OVEC plants and required Ohioans to pay for them. The main beneficiaries from this were American Electric Power Company (AEP), Duke Energy and AES Ohio.

HB 6 coal plant charges mount up again - Ohio ratepayers will again shell out money for two 1950s-era coal plants next month, following a year of cents-per-month credits. Meanwhile, regulators have yet to rule on years-old challenges to millions of dollars of spending for the plants.Critics have called the charges a bailout and have tried multiple times to repeal the coal plant provisions of House Bill 6, the 2019 law at the heart of Ohio’s ongoing corruption scandal. The provision, in the form of a bill rider, has generated a credit for customers over the past year because of a short-term shift in economic conditions as global prices rose for natural gas and coal. Utilities say that shows the rider provides a hedge against high energy prices. But new filings show utilities intend to start collecting money from customers again in July. And their estimates show the plants will likely lose as much as $38 million over the next six months.Meanwhile, an analysis conducted earlier this year for the Ohio Manufacturers’ Association shows the plants have consistently lost money, and their costs could climb to roughly $800 million by 2030. “Under the status quo, these plants were losing money for years and years and years, to the point where the utilities tried to fundamentally change the regulatory regime in the state to get to the point where they could just break even from their bad investments,” said Neil Waggoner, the Sierra Club’s federal deputy director for energy campaigns. The bill rider applies to the Kyger Creek plant in Ohio and the Clifty Creek plant in Indiana, known colloquially as the “OVEC plants” after the Ohio Valley Electric Corporation that operates them. Multiple utilities — including American Electric Power, Duke Energy and AES — own stakes in OVEC, along with other companies.Filings by Duke Energy Ohio, AEP Ohio and AES Ohio at the end of May show they plan to collect charges again from customers starting in July. Depending on the utility, the charge will be 15 or 16 cents monthly for those three companies’ residential ratepayers, with lower rates for commercial and industrial customers. FirstEnergy’s residential Ohio customers will pay 4 cents per month.“By the utilities’ own estimates, they are set to lose $38 million from July to December on OVEC — losses they’ll charge to regular working people and businesses,” RunnerStone CEO John Seryak said, noting that this year’s charge “is being muted by the utilities truing up from past over-collections. Once that true-up is done, the rate customers pay will likely increase.”“Ohioans have already paid for $400 million in losses for OVEC,” due to the HB 6 subsidies and prior regulatory rulings, Seryak said. “And I expect that to double by 2030.”

8 Ohio State Land Locations Nominated for Utica Shale Drilling | Marcellus Drilling News -- Last week shale drillers could, for the first time, begin to apply for permits to drill under (not on top of) Ohio state lands and state parks under newly formulated rules established by the Ohio Oil & Gas Land Management (OGLM) Commission (see Ohio State Lands Now Open for O&G Leasing – Virtual Ribbon-Cutting). Mike Chadsey, director of public relations for the Ohio Oil and Gas Association, said, “State lands leasing is open – cut the ribbon and see who’s interested.” It turns out there are quite a few interested… Yesterday we brought you the news that eight nominations were received on the first day the doors opened (see 8 Cos. Bid to Drill Under OH State Land, Applications Anonymous). Today, we have copies of the eight nominating applications received (minus the identity of the companies making the nominations).

Gas companies pitch fracking state park and two wildlife areas under new law - cleveland.com– Fossil fuel companies formally asked the state to open thousands of acres beneath one state park and two wildlife reserves for oil and gas exploration, new filings posted Monday show. While state law shields their identities from disclosure, public notices on the Ohio Department of Natural Resources website show the drillers’ interest in broad swaths of Salt Fork State Park, Zepernick Wildlife Area and Valley Run Wildlife Area, all in eastern Ohio. These mark the industry’s first steps toward fracking state lands since a recent state law passed by Republicans essentially force-started a dormant system created in 2011 to allow for drilling under state parks. The eight notices, all filed on the first day of the new legal system’s existence last week, trigger a 45-day public comment period. Then the Oil and Gas Land Management Commission, where two of four members are recommended by the industry, decides whether to accept the “nominations” to open the land to drilling and start a public bidding process.Gov. Mike DeWine said when he signed the recent state lands drilling expansion into law that he wouldn’t allow for any surface interruptions in state parks. Companies can drill vertically thousands of feet underground on plots adjacent to state parks and pivot 90 degrees to reach underneath them. From the well bore, they can use the process of hydraulic fracturing or “fracking” to pump a high-pressure mixture of water, sand and chemicals to free the oil and gas from shale. Three of eight nominations seek rights for thousands of acres at Salt Fork in Guernsey County – 21,000 acres of land that were previously the subject of a rejected, $2 billion leasing offer from Encino Energy.Three other nominations seek 302 acres of the Valley Run Wildlife Area, a 304-acre expanse of rolling foothills in Carroll County. According to its website, the park is largely undeveloped and known for hunting, hiking and birding. Another seeks about 66 acres of Zepernick Wildlife Area, a 521 acre preserved space in Columbiana County.The state will release information regarding who submitted the bids or how much money they offered only after the OGLM approves a nomination and selects the best offer. According to Ohio Department of Natural Resources spokesman Andy Chow, the state received a ninth application to drill under state lands on Monday that has not yet been posted online. Environmentalist and conservation organizations opposed the idea, warning of irreversible aesthetic and environmental damage to untouched land in the state. A lawsuit challenging the legislative maneuvers to pass the recent drilling expansion, which include stuffing the idea into an unrelated bill in the closing days of the two-year General Assembly, is ongoing in Franklin County.

Ohio District Becomes Prime Tourist Destination Due to O&G Development After overcoming efforts to limit fossil fuel development on public lands in Ohio, communities across the state are experiencing extraordinary benefits from oil and natural gas production royalties. The latest example of this is taking place in the Muskingum Watershed Conservancy District (MWCD), as it’s becoming a record-setting tourist attraction due to investments in campgrounds and other amenities funded by oil and natural gas revenues.To date, MWCD has invested close to $200 million stemming from energy revenues in upgrades to its facilities through a Master Plan redesign. This includes efforts to build new campgrounds, renovate aging spaces, add new playgrounds, sports courts, and trails. Likely in response to these upgraded recreational facilities, in 2021 the district saw a record-breaking 5 million-plus visitors, and projects that even more tourists will continue to visit its district. Given the success of MWCD’s Master Plan, the district recently signed its largest oil and natural gas lease to date to develop 7,300 acres of land in the Utica Shale basin. The five-year contract will result in around 15 wells, with the possibility to add additional wells in an optional three-year extension. MWCD will receive $5,500/acre, paid over five years, and gross royalty of 20 percent.This partnership clearly shows the possibilities to collaborate with the industry while developing assets that will bring both direct and indirect benefits to the surrounding communities. Naturally, this requires a strong will to collaborate and accountability on both sides. For example, as part of the Tappan Lake lease, MWCD can review the erosion control, construction and reclamation plans, and demand water testing for Tappan or any freshwater sources on MWCD lands within 3,000 feet of the well site.

New Gas-Fired 1,875-MW Plant Comes Online in Ohio -- A new natural gas-fired power plant has entered commercial operation in Ohio. The 1,875-MW Guernsey Power Station, in Guernsey County in southeastern Ohio, is sourcing gas from the Marcellus and Utica shale plays, two of the most-prolific natural gas production areas in the U.S. GE Vernova’s Gas Power division on June 7 said the plant is powered by GE’s HA Class turbine technology. The company touts the $1.7 billion Guernsey facility as the latest gas-fired plant replacing coal-fired generation in the PJM regional transmission organization territory, which covers all or part of 13 states, including Ohio, and the District of Columbia. Construction of the plant began in 2019. PJM officials in a recent report, titled “Energy Transition in PJM: Resource Retirements, Replacements & Risks,” said the retirement of coal-fired generation in that market could outpace new power generation resources. The grid operator said the expected increase in power demand in the region could create concerns about resource adequacy and grid stability across PJM, meaning more baseload power sources are expected to be needed. “In 2022, coal-fired plant retirements accounted for approximately 89% of retired capacity in the PJM region and as more and more coal-fired plants are retired, the need for thermal resources and the essential reliable and flexible power they provide is crucial for grid stability and to help meet the increasing demand for power,” said Ross D. Ain, president of Caithness Energy, the plant’s developer, in a news release. “GE’s gas turbines are among the largest and most-efficient gas turbines in the world, and operating flexibility may be considered as the key feature of [the] Guernsey plant.” Ain said the Guernsey site “had a benefit of a very large natural gas pipeline running across the site and a very large electric transmission line, and those were key elements of building a plant of this size.”

Grant to provide new space for learning in Salineville - (WKBN) – Wednesday was a big day in Columbiana County that celebrated a project to give one village in the county a new look. The Utica Shale Academy in Salineville received a $2.35 million Appalachian Community Grant. The money will be used to build a new building. The Utica Shale Academy helps train students for the gas industry, heavy equipment production and even robotics. As many as 150 students graduated from the school in the last three years. Utica Shale Academy Director Bill Watson believes the new space will help better prepare the students while providing more opportunities. “Basically, we’re going to make sure that you’re both socially prepared and from a trading standpoint prepared,” said Watson. “Obviously, it allows us to give opportunities to kids normally don’t get them and hopefully change the footprint of what Appalachian or region looks like,” he added. The three aspects of the grant were downtown revitalization, workforce development and health and well-being. The Utica Shale Academy won the award by demonstrating an approach to all three. John Carey is the director of Ohio’s Office of Appalachia. He walked through Salineville and took a tour of the property downtown to see and learn how the grant would be spent. “And with this grant, we think we’ll see an impact sooner than later, and that’s one of the reasons why Utica Shale was awarded,” said Carey. The grant comes from a new program and uses ARPA federal dollars. It includes restrictions, but developing the workforce is eligible. The first round for the grant was very competitive. The state had $50 million to give out and $350 million worth of applications. The grant was awarded in March and the Governor’s Office of Appalachia said one reason Salineville was chosen, is because its project is ready to go.

Utica Shale Academy Expanding with $2.35M Grant - – The Utica Shale Academy will be able to expand its programming and footprint in Columbiana County thanks to a $2.35 million grant through Ohio’s Appalachian Community Grant Program. Utica Shale is an Ohio Dropout Recovery School, which works primarily with at-risk students. But the expansion also will allow it to help others with evening programs. “It will basically give kids a cutting edge opportunity to learn in-demand Ohio jobs and not go into debt,” Utica Shale Academy Superintendent William Watson said. “Those are the things we are really focused on, students leaving high school ready to work. … We want to get back to the fact that you don’t have to go to four-year college. … There’s room here in Ohio for every pathway, and they can all flourish.” John Carey, director of the Governor’s Office of Appalachia, toured the school’s campus Wednesday, where 52 students recently graduated after receiving industry credentials. Carey said the Utica Shale Academy project was one of four projects selected from 40 applications. He credited its successful application to having a shovel-ready project. The school plans to break ground in late July or early August. Carey said he was excited to hear the Shale Academy’s plans, and he looks forward to returning when the plans are underway. “They’re going to expand their programming, and they’re going to have some new facilities to be able to deliver more services to more students,” Carey said. Carey said the Utica Shale Academy’s many partnerships, which allow it to help a number of different students, and the fact the school’s expansion project will benefit the village of Salineville as a whole weighed into the decision to fund the project. Watson has plans and drawings ready for the new facility, which will provide space to offer more virtual welding to help get students interested, even those who might not think it is a good fit for them. Additionally, Watson said the school works with young people from families affected by the opioid epidemic. “Statistics show that you’re 85% more likely to not relapse if you are given some type of skilled training and you find a meaningful job,” The new facility will be next to the indoor-outdoor welding facility, where students learn hands-on with welding equipment, even out in the elements. But Watson said the virtual reality welding can reduce by 75% the amount of time it takes for students to learn the needed skills before they use the actual welding equipment. “It gives live, real-time feedback, where it is really hard to have 30 or 40 instructors right there giving feedback. … Once they gain the right skill sets as far as muscle memory, it transitions and translates real well,” Watson said.

David 1, Goliath 0 - Union County Daily Digital -- Chalk one up for the underdog. After 3 1/2 years of legal wrangling, appeals, arguments, briefs and court appearances, the ongoing saga of what will be the disposition of a one-half mile gas line that was proposed by Columbia Gas to run through the Renner/Bailey property southeast of Marysville has come to a close. In a 63-page decision by the Ohio Third Court of Appeals handed down in May, a three-judge panel ruled that not only did Columbia Gas negotiate in bad faith – upholding the Union County Court of Common Pleas ruling – but also denied that Columbia Gas has the right to seek obtaining property in question via eminent domain, which overruled the lower court’s decision. What this means is that the Bailey/Renner parcels will remain pipeline-free and the huge energy conglomerate will have to look elsewhere to build the pipeline spur. The father and son team of Don and Patrick Bailey, who own the property, have fought the pipeline proposal tooth and nail since they first learned of it 3 1/2 years ago. Not only does the ruling protect the Bailey/Renner property, it will also protect development on other Ag Easements granted by the ODA all across Ohio, Mr. Bailey continued. “It sets a precedent that preserved farmland is a public good,” he said. To put it in the broadest of layman’s terms, at issue was approximately one-half mile of is what is known as the Marysville Connector of the Northern Loop, a high-pressure gas pipeline which Columbia Gas and its parent company, NiSource, intends to build. The Baileys were first offered money by Columbia Gas for an easement (which was refused) and then threatened with eminent domain proceedings in court by that would allow the construction over the Bailey’s objections. The Bailey’s pointed to a 2003 agreement with the Ohio Department of Agriculture that granted the Bailey/Renner properties a permanent Agricultural Easement, meaning that no governmental entities nor private companies may gain access to the properties for the purposes of construction without the owner’s consent. This Ag Easement has already survived two challenges, the first by the City of Marysville and then by a private company, both of which were rebuffed and staunchly opposed by the Ohio Department of Agriculture. But in a baffling change of heart, both the ODA (which Union County-native Dorothy Pelanda served as Director until January of this year) and the Ohio Power Siting Board were quick to give the green light to Columbia Gas to run the pipeline through the protected Bailey/Renner farmland, the ODA reversing its stance when the properties were twice threatened with similar predicaments since the Ag Easement was first granted. The consent for the pipeline to be run through the Bailey/Renner property not being given by the owners, Columbus Gas, no doubt emboldened by the lack of resistance to its plan by the ODA and OPSB, followed through its threat and sued the Baileys (who filed a countersuit) in Union County County of Common Pleas for the right to build the pipeline where it pleased. There the judge said that Columbia Gas negotiated in bad faith and ruled in favor of the Baileys in this particular case, but also said that Columbia Gas still had the right to pursue the land through eminent domain proceedings, which it did when it appealed the decision to the Ohio Third District Court of Appeals. With Court of Appeals ruling that Columbia Gas had no such right, the Baileys’ position was affirmed and their farmland will remain untouched.

Ohio Justices To Hear $40M Oil Drilling Contract Fight – Law360 - The appeals court ruled that they drilled outside an Appalachian area "commonly known" as the Utica Shale in violation of their oil and gas leases.

Unrelated Explosions at OH Utica Well Pad, WV Brine Plant | Marcellus Drilling News -- We have two explosions and resulting fires to tell you about–neither related to the other, except they happened two days apart and maybe one hour’s drive apart (as the crow flies). The first was an explosion and fire at the Fairmont Brine Processing facility in Fairmont (Marion County), WV, on May 30. The second was an explosion and fire at a Utica Shale well pad owned by Utica Resources near Lore City (Guernsey County), OH, on June 1. Both appear to be accidents. The only injury reported was a minor injury at the Utica well pad site (a worker on-site refused treatment). The main concern was that the brine treatment plant may have stored or handled radioactive material. The WV Dept. of Environmental Protection (DEP) tested and found no radioactive contamination had spread from the fire.

25 New Shale Well Permits Issued for PA-OH-WV May 29-Jun 4 | Marcellus Drilling News -- New shale permits issued for May 29-Jun 4 in the Marcellus/Utica finally went higher again last week. There were 25 new permits issued, up from the dismal 8 new permits issued the previous week. Last week’s permit tally included 13 new permits for Pennsylvania, 6 new permits for Ohio, and 6 new permits in West Virginia. EQT scored the most new permits with 7 issued in Greene County, PA. Close behind in the #2 position was Antero Resources, with 6 new permits issued in Ritchie County, WV. Antero Resources, Ascent Resources, Belmont County, Bradford County,Chesapeake Energy,, EQT Corp, Greene County (PA), Guernsey County,, Range Resources Corp, Ritchie County, Southwestern Energy, Washington County

Abandoned Oil and Gas Wells Emit Carcinogens and Other Harmful Pollutants, Groundbreaking Study Shows - On a cloudy late-winter morning in 2004, Charles and Dorothy Harper were babysitting their 17-month-old grandson, Baelee, when the furnace in their rural Western Pennsylvania home revved up. The newly retired pastor and his wife did not realize that flammable gas had infiltrated the basement of the house, which they had recently built. Around 9 a.m. that dreary March morning, a massive explosion leveled the house and left three lifeless bodies buried in the rubble along a country road about 80 miles northeast of Pittsburgh. There were 16 known gas wells within 3,000 feet of the Harpers’ home. Natural gas from a well that was being drilled had entered the basement through the couple’s well water, a marshal with a local fire department told The Pittsburgh Tribune Review at the time. Officials knew this, the marshal said, because they tested the victims’ blood and lung tissue after recovering their bodies and found methane—a potent climate-warming compound that is the main constituent of natural gas. Yet a new study suggests that residents of the nation’s fossil-fuel producing regions could be facing a different threat: carcinogens and other toxic air contaminants spewing from millions of wells that are no longer even operating. In a study in the journal ACS Omega, researchers have reported the discovery of harmful volatile organic compounds, or VOCs, leaking from 48 abandoned wells in Western Pennsylvania. Scientists have long known from studies of active drill sites that oil and gas wells produce a wide range of hazardous air pollutants. Yet until now, no independent researchers had systematically measured toxic air contaminants from any of the more than 3 million abandoned oil and gas wells scattered across the nation. In the study, researchers with the nonprofit research and policy institute PSE Healthy Energy measured both the emission rates and the concentrations of harmful VOCs coming from abandoned wells in the heart of the nation’s largest gas field, the Marcellus Shale. “Our study is the first to thoroughly identify that there is a benzene hazard associated with abandoned wells,” Many were releasing benzene, a well-established cause of cancer, along with compounds that damage the nervous, immune and respiratory systems, the researchers reported. They found air concentrations as high as 250 parts per million—250,000 times the California safety threshold of 0.001 parts per million, which public health experts use as a gold standard because it tends to protect the most vulnerable populations, such as children.The U.S. Environmental Protection Agency classifies benzene as a known human carcinogen for every route of exposure, whether inhaled, ingested or absorbed through the skin, and the World Health Organization has concluded that no safe level of exposure to benzene exists..

MVP 'Grateful' for Debt Deal Assist, Looking Toward 2023 Completion - Mountain Valley Pipeline LLC (MVP) developers expect to have the long-delayed and oft-challenged natural gas pipeline in service by the end of this year thanks to a major assist from provisions included in the bipartisan debt ceiling deal signed by President Biden.

MVP developers: Project completion expected by end of 2023 (WV News) — The Mountain Valley Pipeline is expected to be complete by the end of the year thanks to provisions included in the debt ceiling dealing negotiated in Congress, according to its developers. The natural gas pipeline project, first announced nearly a decade ago, could be in operation by this winter, said Natalie Cox, director of communications and corporate affairs for Equitrans Midstream Corp.

WV Enviro Groups Call MVP Greenlight a Terrible Precedent -A 300-mile-long fracking pipeline project slated to cross numerous streams and rivers in West Virginia and Virginia got a major boost over the weekend when President Joe Biden signed the debt-ceiling bill. Peter Anderson, Virginia policy director for the group Appalachian Voices, said one more Clean Water Act permit is needed for the Mountain Valley Pipeline to complete construction. Lawmakers slipped permission for it into theFiscal Responsibility Act of 2023. "Congress would be directing the U.S. Army Corps of Engineers to go ahead and issue authorization for Mountain Valley Pipeline on the Clean Water Act, within 21 days of the bill's passage," Anderson pointed out.The pipeline is expected to cost around $6 billion. One study by the advocacy group Oil Change International found the pipeline would spew more than 89 million metric tons of carbon dioxide into the atmosphere, akin to adding 26 new coal-fired power plants. Supporters, including Sen. Joe Manchin, D-W.Va., argued the project will keep energy costs lower for consumers.Cindy Rank, chair of the Extractive Industries Committee for the West Virginia Highlands Conservancy, added the bill goes further, and attempts to remove litigation as an option for groups and citizens who oppose the project."It sets a terrible precedent for just about any other, especially major projects that may be coming down the line," Rank contended. "None of them are easy. All of them have problems. And problems have to be dealt with legally."Anderson added the pipeline's construction could increase natural-disaster risks for neighboring communities."Almost three quarters of the proposed path involves building on slopes that are either considered moderately susceptible or highly susceptible to landslides presents a real public safety issue," Anderson outlined.He noted the pipeline has already been cited by regulators in multiple states for more than 500 instances of water quality and other environmental violations related to sediment runoff.

What's next for the court cases challenging Mountain Valley Pipeline? -Although the Mountain Valley Pipeline won fast-tracked approval from Congress last week, environmental groups are still exploring possible legal challenges to prevent it from moving forward. President Joe Biden on Saturday signed the Fiscal Responsibility Act, which includes a measure that directs federal agencies to approve permits within 21 days for the 303-mile natural gas pipeline that will supply gas from the Marcellus and Utica shale fields to southern Virginia. The measure also includes a provision that removes judicial authority to review any federal approvals, and mandates that any challenges to the broader law be heard in the U.S. Court of Appeals for the District of Columbia. Most legal challenges to the project have been heard in the Richmond-based U.S. 4th Circuit Court of Appeals. The constitutionality of the provision removing the 4th Circuit’s authority to review permits is what is seen as a possible legal avenue for a challenge, said David Sligh, conservation director for Wild Virginia, one of several environmental groups that have been involved in lawsuits over the pipeline. Three cases over pipeline permits remain active in the 4th Circuit: one against the U.S. Fish and Wildlife Service over impacts to endangered species and two against the U.S. Forest Service and Bureau of Land Management over sediment and erosion issues related to the project. Mountain Valley Pipeline has filed motions to dismiss all three cases, citing the Fiscal Responsibility Act. “Because the plain language of the Act now divests this Court of jurisdiction over this petition and separately moots Petitioner’s claims, the Court must dismiss the Petition,” wrote George P. Sibley III, a lawyer for Mountain Valley Pipeline, in one of the motions. Sligh said environmental groups are considering challenging the Fiscal Responsibility Act’s provision eliminating judicial review of agency approvals as a breach of the separation of powers clause. “A lot of us believe that the law that was passed could be unconstitutional,” said Sligh. A potential stay of the project during such a legal challenge is also among the options being considered to prevent it from continuing, said Victoria Higgins, Virginia director for Chesapeake Climate Action Network, another environmental group involved with litigation against the project. “We will explore every avenue to try to delay the project and end the project,” said Higgins.

Debt-ceiling deal wildly profitable for mystery trader | Fortune - The US government’s move to greenlight a 300-mile natural gas pipeline as part of legislation to stave off a Treasury default shocked just about everyone, except for a mystery trader who somehow appears to have seen it coming. On Wall Street, analysts had mostly expected vague promises on energy permits to be included in a bill to raise the US debt ceiling. Yet, options trading suggests something bigger may have been in the offing. On May 24 — several days before an agreement was announced — a huge bullish bet was made on Equitrans Midstream Corp., data compiled by Bloomberg show. The company is deeply involved in the long-delayed Mountain Valley Pipeline. The wager involved snapping up 100,000 call options on the firm’s stock. It proved prescient and wildly profitable within just a few days. On May 27, White House and Republican lawmakers reached a deal that would give the long-delayed Mountain Valley Pipeline the final approvals needed to complete the project. Throughout April and much of May, negotiators from the White House and Congress went back and forth on broad-stroke parameters of an agreement. Almost until the very end, the details were closely held and in flux. Doubts lingered over whether a deal would be reached before the US was scheduled to run out of money in early June. The legislation, which was signed into law by President Joe Biden on Saturday, forced action on permits for the project. On paper, the bet appears to have earned $7.5 million through Friday. It has some asking whether more than skill and luck played a role. “My questions are: Who’s the trader? How sophisticated are they? And what are their connections to the government?” said Donald Sherman, chief counsel at the ethics watchdog Citizens for Responsibility and Ethics in Washington. He added the bet raises the specter of whether the parameters of the debt deal had somehow leaked out ahead of time. Digging into whether a trade is improperly based on confidential information is notoriously difficult, especially when it involves market-moving news from inside the government. The rules are also rife with gray areas and ambiguities. Officials, including members of Congress, are barred from trading on confidential information they learned in their position. But if, for example, someone overhears a Congressional staffer loudly mention a piece of information on the train, they’re likely in the clear.

Gulf Coast LNG Exporters Say Nitrogen from Permian Feed Gas Challenges Industry - Major U.S. LNG exporters and project developers on the Gulf Coast are exploring how to tackle the costly problem of rising nitrogen and heavy hydrocarbon levels from Permian Basin feed gas..

A new energy battleground: Insurance for LNG terminals - Environmentalists have been pushing insurance companies for years to stop writing policies for fossil fuel companies. Now, they’re opening a new front in their fight — natural gas exports. A coalition led by Public Citizen and Rainforest Action Network is launching a campaign to get insurers to stop covering liquefied natural gas terminals along the Gulf Coast. Exhibit A for the groups will be Freeport LNG, about 70 miles south of Houston. The facility had an explosion nearly a year ago, and campaigners have obtained an insurance certificate showing that some of the world’s largest insurers have issued policies to the Texas export facility. While those companies haven’t committed to stop insuring all fossil fuel companies, they do have broad goals for net-zero greenhouse gas emissions. Covering giant LNG export terminals, in the environmentalists’ opinion, violates at least the spirit of those goals. “Insurers aren’t going to make changes to how they cover fossil fuels, and especially LNG, on their own,” said Kerrina Williams, an organizer with Public Citizen, a consumer advocacy group. “Pressuring the industry to make the changes is vital to slowing climate change.” The groups want to make it difficult, or at least much more expensive, for LNG exporters to get insurance for the facilities that take natural gas, refrigerate it to temperatures so low it turns into a liquid and load it onto ships. They want insurance companies to stop underwriting new plants and the expansion of existing ones. The insurers and the exporters themselves defend LNG as a valid — and needed — part of the transition to lower-emissions energy.

US natgas up 3% on hot weather forecasts, soaring global prices (Reuters) - U.S. natural gas futures rose about 3% on Monday on forecasts for low wind power, warmer weather and higher air conditioning demand over the next two weeks than previously expected, rising exports to Mexico and a jump in global gas prices. The amount of U.S. power generated by wind so far this week dropped to just 6% of the total versus a recent high of 12% during the week ended May 12, according to federal energy data. The amount of power generated by gas has risen to 44% so far this week, up from around 40% in recent weeks. When power generators burn more gas to produce electricity to meet rising air conditioning use, there is less of the fuel available to go into storage for the peak winter heating season. That helps boost prices. That U.S. price increase occurred despite near record output and a drop in the amount of gas flowing to liquefied natural gas (LNG) export plants due to maintenance. Front-month gas futures for July delivery on the New York Mercantile Exchange rose 7.3 cents, or 3.4%, to settle at $2.245 per million British thermal units (mmBtu). Even though gas prices rose about 3% last week, speculators cut their net long futures and options positions on the New York Mercantile and Intercontinental Exchanges for the first time in three weeks, according to the U.S. Commodity Futures Trading Commission's Commitments of Traders report. In the spot market, low demand due to mild weather cut next-day gas prices for Monday at the U.S. Henry Hub benchmark in Louisiana to $1.74 per mmBtu, their lowest price since October 2020 for a second day in a row. In Northern California, next-day gas at the PG&E Citygate fell to $2.51 per mmBtu, its lowest since July 2020. Around the world, meanwhile, gas futures soared over 25% at the Dutch Title Transfer Facility (TTF) benchmark in Europe to more than $9 per mmBtu, on low LNG sendout and outages. So far this year, gas prices at TTF and the Japan Korea Marker benchmark in Asia have collapsed more than 60%. On Friday, gas at TTF was trading at a 25-month low of around $7 per mmBtu, while JKM held near a 24-month low near $9. Data provider Refinitiv said average gas output in the U.S. Lower 48 states has eased to 102.4 billion cubic feet per day (bcfd) so far in June, down from a monthly record of 102.5 bcfd in May. Meteorologists projected the weather in the Lower 48 states would remain mostly near through June 13 before turning hotter than normal from June 14-20. Refinitiv forecast U.S. gas demand, including exports, would ease from 95.9 bcfd this week to 95.3 bcfd next week on expectations wind power will remain low this week. Those demand forecasts were higher than Refinitiv's outlook on Friday.

US natgas falls 4% on low demand outlook, futures volatility drops (Reuters) - U.S. natural gas futures dropped about 4% on Friday on forecasts for less demand over the next two weeks than previously expected, while mild weather so far this year cut historical volatility in futures to a 13-month low. A big part of what has kept U.S. demand depressed in recent weeks is a drop in the amount of gas flowing to U.S. liquefied natural gas (LNG) export plants due to maintenance work at several facilities and the pipelines connected to them. Friday's price decline came despite a decrease in U.S. gas output, a jump in global gas prices, near record exports to Mexico and as U.S. generators burn more gas to produce electricity due to a reduction in wind and solar power output related in part to smoke from wildfires in Canada. The amount of U.S. power generated by solar slid to just 4% of the total so far this week versus an average of 5% over the past month, according to federal energy data. Wind power also dropped to 5% of total generation this week versus a recent high of 12% during the windy week ended May 12. That forced power generators to boost the amount of electricity produced by gas to 45% this week, up from around 40% in recent weeks. Front-month gas futures for July delivery on the New York Mercantile Exchange fell 9.8 cents, or 4.2%, to settle at $2.254 per million British thermal units (mmBtu). On Thursday, the contract rose for a fifth day in a row to settle at its highest since May 24. After prices rose during the prior five trading days, the front-month was still up about 4% for the week after easing less than 1% last week. Mild weather so far this year has cut historic or actual 30-day close-to-close volatility to 62.2%, its lowest since May 2022. On a daily basis, historic volatility hit a record high of 177.7% in February 2022 and a record low of 7.3% in June 1991. Around the world, however, gas futures remained volatile. Prices at the Dutch Title Transfer Facility (TTF) benchmark in Europe jumped as much as 24% earlier in the session to around $10 per mmBtu on Friday after dropping about 13% on June 6 and soaring 25% on June 5. So far this year, gas prices at TTF and the Japan Korea Marker (JKM) benchmark in Asia have collapsed by more than 55%. TTF fell to a 25-month low near $7 per mmBtu last week, while JKM matched a 24-month low of around $9 on Friday.

Pipeline Company Must Face $65,800 Fine Over Repair Violations

• Company claims penalties violate due process
• Circuit majority affirms penalty for slow repairs

A Michigan-based pipeline company will face civil penalties for violating federal regulations by failing to make timely repairs to its petroleum pipeline, a Sixth Circuit majority decided.The US Department of Transportation’s Pipeline and Hazardous Materials Safety Administration fined Wolverine Pipe Line Co. $65,800 for failing to reduce the operating pressure of its pipeline after a dent was discovered and failing to complete additional repairs within 180 days.According to court documents, Daniel Cooper, Wolverine’s only risk management specialist was informed of a dent and metal loss in one of Wolverine’s pipeline segments on June 10, 2015, via email. Cooper ...

Texas Permian Natural Gas, Oil Permitting Up in May, but State Overall Sees Declines - New natural gas and oil drilling permits almost doubled in May in one portion of the Permian Basin in Texas, but overall, activity was down sharply in the state.

America is going through an oil boom — and this time it's different — America's oil industry is booming — in a surprising way. It doesn't look much like the booms of the past, when companies would scramble to pump as much oil as possible and the region would attract so many workers it became impossible to find housing and free hotel rooms. Instead, a sector infamous for its booms and busts is finally learning how to embrace the one thing they've never been known for: moderation. Hold That Drill: Why Wall Street Wants Energy Companies To Pump Less Oil, Not More ENERGY Hold That Drill: Why Wall Street Wants Energy Companies To Pump Less Oil, Not More This shift is doing a lot of good in the Permian, America's most prolific oil basin. Oil companies are raking in profits, and the steadier work has also been good for workers across the region. But the economic, geopolitical and climate implications are more complicated. Last year, Russia's invasion of Ukraine sent crude prices soaring well past $100 a barrel, and that meant producers were making money hand over fist. Prices have since fallen, but they remain at or above their pre-pandemic levels. Significantly, they've consistently been high enough for most producers to drill new wells at a profit. The most recent survey from the Dallas Federal Reserve found that the average Permian producer can break even on a new well when WTI (a key reference price for oil prices) is trading at $61 a barrel. And currently, prices are well above that level. The result: Big profits for companies and higher employment and wages for workers in the Permian Basin. In previous boom times, more than 500 drilling rigs were operating simultaneously across the Permian as oil companies chased high oil prices. All those wells contributed to a huge growth in oil supply, which then led to a huge oversupply, which then inevitably led to ... huge price crashes and a resulting collapse in drilling activity. Boom, bust. Boom, bust. But last year, despite prices topping $100 a barrel, rig counts stayed in the mid-300s. They held there as prices dropped. And that's where they remain today, more or less leveling off.

Navajo Nation criticizes Chaco decision - Navajo Nation officials criticized the U.S. Department of the Interior for protecting a swath of Chaco Canyon in northwestern New Mexico from new oil and gas leasing for the next 20 years. Interior Secretary Deb Haaland announced the protection for Chaco Culture National History Park on the Navajo Nation Friday. Navajo Nation President Buu Nygren and Speaker Crystalyne Curley criticized the decision in a statement, saying it undermines the tribe’s sovereignty. Nygren says the tribe wanted a five-mile area protected, while Haaland created a 10-mile buffer, which he says impacts thousands of Navajo Nation allotment owners. He’s called on the Biden administration to reverse the decision.

Hundreds of Barrels of Oil Estimated to Have Spilled Into Garfield County Creek - The Oklahoma Corporation Commission said an estimated 500 barrels of a crude oil mixture spilled into a creek in Garfield County.About 3 miles of Ninemile Creek, located between Hillsdale and Kremlin, were contaminated, Matt Skinner, the director of Public Information at the Oklahoma Corporation Commission, said.Skinner said the Corporation Commission got a report at around 8:30 a.m. Friday that the spill had occurred.It originated from a facility owned by Nemaha Environmental Services, a company that disposes of drilling mud, a fluid that helps with the drilling of wells.The company was storing crude oil and other materials that were separated from the drilling mud during the disposal process, Skinner said. But rain may have caused the storage area to overflow or created enough pressure to damage the dike around it, causing the crude oil mixture to spill into the creek, Skinner explained.Skinner said there were sightings of dead fish after the spill.A cleanup company extracted about 70 barrels of the crude oil mixture from the creek as of Friday night, said Skinner. But up to 500 barrels of oil were estimated to have gotten into the water, Skinner added. He said it was unclear how long the cleanup would take.Staff from the Corporation Commission were on site to ensure proper protocols were being followed during the containment and cleanup process, Skinner said.Newt Roberts, a farmer who lives near the area of the spill, said some neighboring farmers were concerned about their cattle drinking the contaminated water from the creek, prompting them to relocate their livestock to other pastures. “It did go across three different farms for us,” Roberts said. “It’ll cost the farmer because if he’s renting that pasture, he’s paying rent and not getting to use it.” Roberts said his own cattle are safe. He added that he has never seen another oil spill in his 30-plus years of living in the area. “I just couldn’t believe how much oil had run down the creek,” Roberts said. “The cleanup is going to be very timely and costly.”

Oil spill contaminates 3 miles of Ninemile Creek near Enid early Friday - Local officials and farmers are still dealing with the aftermath of a major oil spill north of Enid, where hundreds of barrels of oil mixture are estimated to have spread across Ninemile Creek in north-central Oklahoma. The oil spill was first reported Friday around 8:30 a.m. near West Keowee Road and North Garland Road in northern Garfield County. Nemaha Environmental Services, an Enid-based company, owns a drilling mud disposal operation at the site between Kremlin and Hillsdale. “What caused this spill was torrential rain, which caused the area to overflow or develop a problem with the dike, but that’s all pending our investigation,” said Matt Skinner, a spokesman for the Oklahoma Corporation Commission, the lead agency looking into the spill. The spill, which stretches for nearly three miles, is a mixture of crude oil and other substances extracted from the drill mud, officials said. The Oklahoma Corporation Commission originally estimated Friday that 500 barrels of oil mixture had spilled into the creek, but Skinner said Tuesday the actual estimate is closer to 1,000 barrels. As of Tuesday evening, Skinner said cleanup crews and skimmers have recovered 630 barrels. The spill is of great concern to local farmers surrounding Ninemile Creek, according to Josh Byrd, a photographer hired by residents to record aerial footage of the contaminated area with his drone. “Their land that they usually use for grazing and cattle is just not usable right now, because they don’t want their cattle to get into that mess,” Byrd said. “It’s very thick and black.” Byrd said the farmers also are concerned about contamination issues potentially affecting tributaries that flow into neighboring bodies of water, such as the Arkansas River and Keystone Lake. “It’s gone past just being a serious problem for a few local farmers, to being a major problem for the state, especially if it gets into the Keystone Lake,” Byrd said.

Does Oil and Gas Production Consume Too Much Water? --A multiwell oil and gas project proposed for a drought-ridden Denver suburb would require 4.4 trillion gallons of water — enough to fill 6,679 Olympic-sized swimming pools. Crestone Peak Resources Operating LLC asked state regulators on April 28 for permission to drill 164 wells in Colorado’s third largest city, where residents are facing water restrictions prompted by declining reservoir levels. Lakes that the Denver suburb of Aurora relies on are only 63% full. Some residents are using dish water to sustain their plants. Now, as water used in oil and gas production is increasing, arid Western states are asking if the industry is using too much of a precious resource. “Why are the citizens asked to bear the brunt of the drought when we see oil and gas operators using so much water?” asked Kevin Chan, who leads the grassroots group Save the Aurora Reservoir opposed to the project, at a March hearing of the state House Energy & Environment Committee on a bill seeking to reduce freshwater use by the fossil fuel industry.Four of five of the nation’s top oil-producing states are in the arid West, where water supplies hit historic lows in 2022 due to global warming, a 1,200-year megadrought and record population growth. A wet winter did not provide equally for Colorado’s eight river basins, with central and southern regions reporting reservoirs as low as 35% of capacity this spring. With growth across the West expected to continue, lawmakers fromColorado to New Mexico to Texas have passed laws since 2019 requiring consortiums of energy officials, scientists, regulators and others to figure out how to reuse and recycle contaminated frack water (known as produced water). Energy companies require an average of 15 million gallons of water to frack a single well — a process by which water, chemicals and sand are injected at high pressure to open cracks in shale, releasing oil and gas. Reuse already occurs in some regions: In the Piceance Basin on Colorado’s Western Slope, Terra Energy Partners LLC treats and reuses most fracking water. In others, it doesn’t. Operators in the Denver-Julesburg Basin on the eastern side of the Rockies, the state’s largest oil play, permanently dispose of all but a fraction of the polluted water. Overall, oil and gas companies in Colorado more than doubled their use of freshwater in extraction activities in the last decade, even as production fell, found the nonprofit FracTracker Alliance in a May report. Water used per well is increasing in other oil-producing states as well, statistics show. Energy companies have emphasized that other users consume more water than they do — agriculture relies on more than 80% of such supplies to irrigate crops, and municipalities use around 11%.

Hourly Pay for Shale Workers Tops $43 | Rigzone Wages for US oil workers climbed above $43 an hour for the first time ever as unemployment held steady in the shale patch for explorers looking to arrest slower production growth. Average hourly earnings for front-line oil-and-gas workers rose 0.7% in April from the previous month to $43.28, according to a Labor Department report released Friday. Compared with a year ago, pay is up 12%. The relative strength in shale employment data bucked an overall national trend in the economy that saw the jobless rate jump and paycheck growth ease. While wages in the shale patch have been forecast to continue increasing — albeit at a slower pace — over the next couple of years, explorers are already beginning to report cost deflation for key equipment as demand for oilfield services weakens. That could ultimately lead to a cooling off in workers’ earnings, too. The jobless rate in oil and natural gas held at 1.8% in May on an unadjusted basis, government figures show. That compares with an unemployment rate of 4.1% a year earlier. The overall number of workers employed in the industry totaled 119,000 in May, down 3.2% from last year’s peak.

Exxon bets new ways to frack can double oil pumped from shale wells - Exxon Mobil is betting that a better way to frack will double the amount of oil it can pump from shale fields. “There’s just a lot of oil being left in the ground,” Chief Executive Officer Darren Woods said Thursday at the Bernstein Strategic Decisions conference. “Fracking’s been around for a really long time, but the science of fracking is not well understood.” Hydraulic fracturing, or fracking, is the process of blasting water, sand and chemicals underground to break apart rock and keep it propped open for oil to flow out. Though the technology gave rise to the U.S. shale boom, only about 10 percent of the oil in a reservoir is recovered using current techniques. Better drilling and fracking methods may prove critical as output growth from shale fields slows. Exxon is working on two specific areas to improve fracking, Woods said. It wants to be able to frack more precisely along the well so that more oil-soaked rock is getting drained. It also wants to keep the cracks open longer to boost the flow of oil. Sand is the primary method today to prevent fractures from closing up. “That in my mind is where the first wave of technology will come into that field,” Woods said. “We think we’ve got some promising technologies to employ there that will significantly improve our recovery.”

Supreme Court won’t review ruling barring offshore fracking in California -- The U.S. Supreme Court on Monday declined a request by the oil industry to review a lower court ruling barring fracking off California’s shore. In 2014, the Environmental Defense Center (EDC) sued to halt offshore fracking in federal waters off the Golden State. Four years later, Judge Philip S. Gutierrez of the Central District of California, a George W. Bush appointee, found the federal government had violated the Endangered Species Act and Coastal Zone Management Act by issuing fracking permits for the area. Last year, a three-judge federal appeals court upheld the ruling but also went further than the Central District, finding that the Interior Department also failed to conduct required environmental reviews under the National Environmental Policy Act. “The agencies also should have prepared a full [environmental impact statement] in light of the unknown risks posed by the well stimulation treatments and the significant data gaps that the agencies acknowledged,” the appeals court wrote. The plaintiffs in the case hailed the Supreme Court’s decision in a statement Monday. “The Supreme Court was right to reject the oil industry’s latest attempt to allow fracking and acidizing in our waters with zero meaningful environmental review,” Maggie Hall, senior attorney at EDC, said in a statement. “The Santa Barbara Channel is one of the most ecologically rich and important regions in the world. As the climate crisis escalates, ending these destructive extraction practices is a matter of survival — not just for the whales, otters and other animals in the Channel, but for all life on earth.” “Access to the vast energy resources offshore is essential for meeting the growing demand for affordable, reliable energy while achieving our climate goals,” said Holly Hopkins, vice president of upstream policy at the American Petroleum Institute (API), the intervenor-defendant in the case. “API will continue to work with policymakers to advance opportunities that allow for the safe and responsible development of the Outer Continental Shelf.”

US Supreme Court Rejects Big Oil Challenge to Offshore Fracking Ban in California - The U.S. Supreme Court on Monday rejected a call from several fossil fuel companies to hear their challenge to a lower court ruling handed down a year ago, which prohibited fracking in federal waters off the coast of California.The 9th U.S. Circuit Court of Appeals last June upheld a decision to bar the issuing of permits for offshore fracking, finding that the U.S. Department of the Interior had violated the Endangered Species Act (ESA), the National Environmental Policy Act, and the Coastal Zone Management Act when it allowed fracking in offshore gas and oil wells in the Pacific.In the original case, the ruling was the result of three separate lawsuits filed by the Center for Biological Diversity (CBD) and the Wishtoyo Foundation, the Environmental Defense Center (EDC) and Santa Barbara Channelkeeper, and the state of California, challenging the federal government.Earlier this year, fossil fuel companies ExxonMobil and DCOR, LLC were joined by the American Petroleum Institute in intervening in the case, filing a petition for certiorari in an effort to overturn the 9th Circuit ruling.Despite the history of the case, the Biden administration opposed the fossil fuel companies' move, with Solicitor General Elizabeth Prelogarwriting in a Supreme Court brief last week that "the court of appeals' decision does not warrant this court's review.""California's amazing coast and vulnerable marine life deserve this victory, which will protect the ecosystem from the many dangers of offshore fracking," said Kristen Monsell, oceans legal director at CBD. "The fracking ban will help prevent more toxic chemicals from poisoning fish, sea otters, and other marine life."EDC filed its lawsuit after finding in 2014 through several Freedom of Information Act requests that the federal government had issued more than 50 permits without conducting environmental reviews or a public comment process.CBD published a report that same year showing that offshore fracking near Los Angeles and Santa Barbara posed a serious risk to marine species that could be exposed to toxic chemicals as well as increasing air pollution and the chance of an earthquake. At least 10 chemicals that were routinely used in fracking operations off the California coast before the 9th Circuit ruling was handed down were found to be harmful and even deadly to marine animals including sea otters and fish.

State considering changes after activists press for action on leaky oil wells - Activists pushing state and regional regulators for a more robust response to the discovery of leaky oil wells in Arvin and Lamont won tentative offers Tuesday for neighborhood-level notifications about the findings and, possibly, new sampling of local air quality. Talk of additional action on the matter came during an online meeting Tuesday afternoon involving environmental justice advocates and representatives of several state agencies involved with a methane task force set up by Gov. Gavin Newsom. It follows last week's announcement that state inspectors found methane leaking from 27 wells — 40% of those checked. During Tuesday's discussion, a representative of the California Air Resources Board said the state needs to figure out a better way to carry out notifications. "So, it's definitely something noted," Heather Quiros, assistant chief of CARB's enforcement division, said in reference to local notifications. She added later, "It's something we definitely want to have conversations about." When EJ advocates asked whether the state officials would be taking air quality samples in residential areas, as they did when leaks were discovered last year in Bakersfield, Quiros responded, "It's something that can be done." No formal commitments were made in either instance. Methane leaks have been a sensitive topic after a pipeline leak in Arvin sickened residents in 2014 and resulted in the evacuation of about three dozen neighbors. As was the case when oil well leaks were discovered last year in dozens of sites around Bakersfield, state officials downplayed the risk to safety and health. They have pointed out that methane leaking into the atmosphere generally does not present an explosion risk unless it is enclosed. Likewise, they have noted uncontrolled methane releases don't usually present health problems in such conditions because the potent greenhouse gas tends to disperse quickly. When EJ advocates asked whether there has been testing for carcinogenic volatile organic compounds that sometimes accompany methane releases at oil wells, they were told by state representatives that no such sampling has taken place in the Arvin-Lamont area in response to the discovery of the leaks. Three of the wells found to have been leaking late last month are located near Arvin High School. Activist Jesus Alonso said people he has spoken with about the methane leaks "are really outraged that this information has not been (put) out yet." "What can I say to them?" he asked. "What can I share with them?" Fifteen of the 27 wells were found to have been leaking methane at rates exceeding 50,000 parts per million, which if not dispersed can be enough to ignite. State officials on Tuesday's call said they were unable to determine how long the wells had been leaking.

Two LNG Terminals Completed in Philippines --Two liquefied natural gas (LNG) projects have wrapped up construction in the Philippines, opening up importation to meet growing energy demand in Southeast Asia’s second most populous country. The facility by AG&P International Pte. Ltd. and Linseed Field Power Corp. in Batangas Bay has already started supplying a power plant in Batangas province while the other terminal owned by FGEN LNG Corp. is set to receive its first LNG cargo later this year, according to a press release by the Department of Energy (DOE) Friday. The LNG fed to the Ilijan combined cycle plant enabled the power station to resume supply to the electricity grid Thursday, the department said. The 1,200-megawatt mill, owned by a Philippine subsidiary of Korea Electric Power Corp. and operated by Filipino conglomerate San Miguel Corp., ceased operation June 2022 after the fuel supply stopped from the depleting Malampaya gas field. “All these developments are positive signals reflecting the continuous interest of the private sector in investing in critical infrastructures that will allow the country to import and utilize imported LNG and complement the available gas from the Malampaya reservoir to meet the country's growing energy demand”, Friday’s announcement noted. In April the country received its first-ever LNG supply from abroad, as announced by AG&P. The Singapore-based AG&P signed last year a 15-year deal with the Abu Dhabi National Oil Co. to supply the former with LNG, as announced by AG&P February 23, 2022.

DOE’s fossil gas projects in Batangas alarm green group — An environmentalist group has expressed alarm over the growing number of gas-fired power plant projects in Batangas following the completion of two more liquefied natural gas (LNG) facilities in the province. The Protect the Verde Island Passage (Protect VIP) network was dismayed that the Department of Energy’s (DOE) announcement on the two LNG terminals in Batangas “appears insensitive to the thousands of affected communities who are still reckoning with the oil spill in the Verde Island Passage (VIP),” said Fr. Edwin Gariguez, lead convenor of the group, in a statement on Sunday. According to Gariguez, the fossil gas projects in Batangas “goes against the need to protect this globally significant marine corridor blessed with incomparable beauty and biodiversity and whose marine wealth provides sustenance and livelihood to millions of Filipinos.” On June 2, the DOE announced that the completion of the two LNG facilities would “add to and secure the supply of natural gas for its power plants in Batangas.” Another facility built by FGEN LNG Corp. (FGEN LNG) in Batangas City would be delivering its first LNG cargo in the later part of this year, the DOE added. The FGEN LNG terminal inside its First Gen Clean Energy Complex in Batangas aims to supply the power needs of gas-fired plants in the country, mainly within the Luzon grid. But Gariguez said the numerous fossil gas projects in Batangas could mean “more shipping lane traffic in the VIP and more toxic cargo plying our waters,” endangering the resource-rich passage, similar to what happened on Feb. 28 when oil tanker MT Princess Empress, which was carrying 800,000 liters of industrial fuel, sank off the waters of Oriental Mindoro, which is within the VIP corridor, and caused a massive oil spill. “DOE’s pursuit of new energy sources must not come at the expense of our environment and people, specifically when we are teeming with abundant renewable energy sources waiting to be tapped,” he emphasized.

Mindoro oil spill significantly controlled— The recent oil spill in Oriental Mindoro is still ongoing but has been significantly controlled, Environment and Natural Resources chief Toni Yulo-Loyzaga said Monday. "So, sa ngayon po ongoing pa rin ang oil spill. I would say that it has been significantly controlled from the day that it happened. I think the biggest realization here is from the date of release of some substance like oil, that oil will travel (where) the wind and the current will take it," Yulo-Loyzaga said in a press conference. "Over the course of time there is a portion of the oil that will evaporate, there is a portion that will not (that's) what we are trying to keep track off so we can anticipate how we can protect our ecosystems. Our (coral) reef, our sea grasses, our mangoves, significantly po, in terms of volume under control na po siya," she added. Yulo-Loyzaga noted that they are in the last phase of clean up as earlier said by the National Task Force on Oil Spill Management. "As of the moment, there are ongoing operations, the spill is still ongoing. As far as our latest information, the private contractors of the ship owners were working on capping the last remaining leaks doon po sa vessel na 'yun," she said. "So, they have to bring in a specialized ROV to actually take over from the work that was done by the partners from Japan and the US na talaga pong significantly nag-decrease po 'yung leakage because they were able to practice. So, ongoing pa rin 'yung hazard management on the side." The oil extraction is expected to be completed within 20 to 30 days if weather conditions permit, they added. The MT Princess Empress ran aground off the coast of Pola, Oriental Mindoro on February 28. It was carrying some 800,000 liters of industrial oil as cargo and fossil fuel in its engine. The oil spill has so far left P58.137 million worth of damage and losses to fisheries, affected more than 27,500 fisherfolk, and caused 15 local government units to declare a state of calamity. More than 42,000 families have been affected from over 100 affected areas in Oriental Mindoro, Palawan, Antique, and Batangas.

IOPC Funds will help meet Philippine tanker oil spill claims - The International Oil Pollution Compensation (IOPC) Funds has agreed to work with the Shipowners’ Club on meeting mounting claims from a tanker spill off the Philippines. At a recent IOPC Funds meeting, it was agreed that claims resulting from the sinking of the 1,143-dwt Princess Empress (built 2022) are likely to exceed the shipowner’s limitation of liability agreed under international conventions. Crew rescued but fuel spilt as new tanker sinks off Philippines Read more “The 1992 Fund Executive Committee decided to authorise the director to make payments in respect of losses arising out of this incident. The committee also authorised him to sign an agreement on interim payments with the club, which would apply retrospectively,” the London-based IOPC Funds said after its meeting. In March, the Princess Empress sank in poor weather off Oriental Mindoro in the Philippines with 800,000 litres of fuel oil as cargo onboard. The wreck lies at a depth of 400 metres. The subsequent oil spill led to a ban on local fishing and polluted coastlines, including environmentally sensitive areas. In TV coverage of a government hearing into the incident, the owner of the tanker, RDC Reield Marine Services, said it paid $22,000 in premium for the vessel’s insurance cover. Article continues below the advert The protection and indemnity policy for the tanker, which covers claims related to third-party damage, was placed with the Shipowners’ Club, a member of the International Group of P&I Clubs. The owner insisted that the ship is new and not, as has been widely reported, an old vessel that has been rebuilt. Frizie Tee, vice president of RDC Reield Marine Services, told the hearing: “We sincerely apologise to the communities, the local and national government and the agencies. Elements beyond human control such as weather disturbance in the area resulted in this unfortunate event.” Around 41,000 families have been reported affected by the spill and Philippine Peso 611m ($10.8m) has been paid out in livelihood support so far. The Shipowners’ Club and the IOPC Funds have established several joint claims offices in the region. The estimated cost of environmental damage has been put at Peso 9.4bn. The initial insurance costs of the incident will be met by the Shipowners’ Club, but costs over $10m will be placed with the International Group’s claims pool. Sums that exceed the shipowner’s limitation under the 1992 Civil Liability Convention and the 2006 Small Tanker Oil Pollution Indemnification Agreement are met by the IOPC Funds.

Guyana suspends order over ExxonMobil dispute-- An appeal court judge in growing oil producer Guyana today suspended an order by a lower court that US major ExxonMobil provide by 10 June an unlimited guarantee to cover any oil spill at its Liza 1 project on the deepwater Stabroek block. The suspension of the order will prevent the company from losing its permit for the Liza-1 well that is producing about 150,000 b/d. But the appeal court judge ordered ExxonMobil to make a $2bn security deposit within 10 days. The dispute will be adjudicated by the country's full court of appeal on a date to be set. Neither the company nor the government — that opposed the order for an unlimited guarantee — has commented on today's ruling. Both had sought a stay of the order to suspend the company's permit to operate for failing to provide an unlimited guarantee which will safeguard against the dangers of an oil spill. ExxonMobil and its partners already have "the right measures" in place to prevent, mitigate and pay for a clean-up in the event of an oil spill, the company argues. The challenge to ExxonMobil's Liza 1 project was filed in September 2022 by environmental lobbies that contended the company was not providing adequate guarantees to compensate for any oil spill. ExxonMobil was involved in "a disingenuous attempt" to reduce its obligations under its environmental permit for the Liza 1 project, Guyana's high court had ruled. The company had been allowed to do this because of "the omissions of a derelict, pliant and submissive environmental protection agency," it said. The dispute involves only the company's Liza 1 project and not Liza 2 that is also on the Stabroek block. ExxonMobil started production in 2019 from Stabroek in which it has a 45pc stake, with US independent Hess holding 30pc. Chinese state-owned CNOOC unit Nexen has a 25pc share. The consortium is the only producer in the country. The consortium's crude output in the first quarter averaged 378,340 b/d against 121,100 b/d in the corresponding 2022 period.

Blend of WTI, Brazilian grades undercuts Nigerian crude in fresh blow to sector | S&P Global Commodity Insights --WTI Midland, the light sweet US grade, is being blended with heavy Brazilian grades to produce a cheaper Nigerian lookalike, which is undercutting the Nigerian crude grades in Europe and pushing down buying interest for Nigerian cargoes, multiple trading sources told S&P Global Commodity Insights. In recent months traders have struggled to offload cargoes of Nigerian crude as buyers in India and China moved to buy more heavily discounted Urals crude, now even European refiners have begun looking elsewhere for crude oil. In turn this has pushed Bonny Light, Nigeria's flagship crude grade to 50 cents/b discount to Dated Brent on June 6. The discount has narrowed slightly over the last few days but has averaged a discount to Dated Brent over April, May and so far in June. "WAF is losing out to alternatives in Europe - [WTI] Midland and Brazilian [grades] have been consistently undercutting [differentials, and sellers of Nigerian barrels] just cannot find demand in Europe," one trader said. Blending of the grades at European refineries produces crude with the low sulfur quality of Nigerian grades, but with enough heavy Brazilian content to ensure not too much naphtha is produced, sources said. This is latest blow to Nigeria's embattled oil sector, with production falling in recent years due to security, underinvestment and technical issues at ageing wells. African crudes popular with refiners in Asia have been undercut in recent months by cheap Russian barrels, due to the price cap imposed on Russian oil by Western countries following the war in Ukraine. Indian and Chinese refiners, in particular, have become hooked on Russia's Urals grade, according to data from S&P Global Commodities at Sea. "I don't think Nigeria can sustain competition with WTI Midland mixed with Brazil, [it's been a] long time now since we have seen Europe able to absorb Nigerian exports," a second trader said. Sources hinted that blending of WTI and Brazilian grades to make a more affordable Nigerian substitute grade had been occurring for some weeks, leading to a material decline in demand for the country's crude. "Nigerian [grades] like Bonga, Forcados and Escravos are struggling - lots of availability indeed," a third trader said. Sellers have already observed a noticeable reduction in the amount of WAF crude being purchased by some European refiners. "We've seen some usual WAF buyers have underbought by 100,000 barrels/day now," said a fourth trader, adding that "when you don't have India buying as well [that is] putting pressure on the market." The lack of Indian demand over the last six months in combination with the competition from the blended WTI Midland and Brazilian barrels is driving the continued bearish sentiment, sources said. "The fall will be inevitable," another trader said, referring to Nigerian crude differentials.

Putin Gains Influence in Oil Rich Libya -- While the US ponders whether to reopen its embassy in Libya, Vladimir Putin’s new ambassador is preparing to take up his post in the capital, extending Russian influence across an oil-producing nation on the doorstep of Europe. Russia’s Wagner Group, a private military company controlled by Putin ally Yevgeny Prigozhin, already has access to key oil facilities and supported last year’s monthslong blockade that hit exports at the height of the energy crisis triggered by the invasion of Ukraine. Moscow’s decision to reestablish its diplomatic presence in Tripoli — western seat of the United Nations-backed government — is the clearest sign yet that Putin is looking to make inroads beyond his traditional support for military commander Khalifa Haftar in the east. The developments have prompted concern in the US, which has dispatched a slew of senior officials to counter Putin’s advances in an OPEC member that European governments are courting as a potential alternative to Russian energy. They include CIA chief William Burns, who visited Libya in January, speaking to rival governments in east and west and later meeting officials in neighboring Egypt, which has also supported Haftar. Top of the US agenda is a bid to oust an estimated 2,000 Wagner mercenaries who supported Haftar’s failed 2019-2020 campaign to capture Tripoli and have since helped bolster his grip on oil supplies in a country that’s home to 40% of Africa’s reserves.

OPEC+ sticks to 2023 production target, Saudi Arabia sets further cuts -The influential Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, on Sunday made no changes to its planned oil production cuts for this year, as coalition chair Saudi Arabia announced further voluntary declines. OPEC+ also announced in a statement that it will limit combined oil production to 40.463 million barrels per day over January-December 2024. Previously, the alliance agreed to a 2 million barrels-per-day decline in October. Some OPEC+ members also announced some voluntary drops of just over 1.6 million barrels per day in April. Russia's Deputy Prime Minister Alexander Novak said Sunday that all voluntary cuts, which were initially set to expire after 2023, will now be extended until the end of 2024, in comments reported by Reuters.Asked whether Russia, hit by Western sanctions, will carry out its pledge to cut output, UAE oil minister Suhail al-Mazrouei on Sunday acknowledged there were discrepancies between figures supplied by Moscow and the independent Russian production estimates of analysts and trade publications. "Some of the things that we have seen from Russia on a technical basis just ... [don't] add up from some of the independent sources, and we will be reaching out to those independent sources," he said during a press briefing after the OPEC+ meeting. Saudi Arabia's energy ministry said Riyadh will implement an additional voluntary one-month 1 million-barrel-per-day cut starting this July, which can be extended. This will bring the kingdom's total voluntary declines to 1.5 million barrels per day over the period, reining in its production to 9 million barrels. The Saudi energy minister described the kingdom's additional 1 million barrel-per-day voluntary reduction as a "Saudi lollipop" and stressed it will implemented. "We have always honored our commitments," he said during the Sunday press briefing. He left unanswered whether the kingdom will extend its voluntary reduction beyond July. The move by the 23-country alliance follows contentious talks that dragged well into the night on Saturday, as well as a more-than four-hour Sunday meeting of the alliance's Joint Ministerial Monitoring Committee, which recommends, but does not implement, policy. At stake for OPEC+ is a battle to reconcile an outlook of tighter supply in the second half of the year, current macro-economic and inflationary concerns, and intergroup diplomacy.

Saudi to Cut Output by 1MM BPD in Solo OPEC+ Move - Saudi Arabia will make an extra 1 million barrel-a-day oil supply cut in July, taking its production to the lowest level for several years after a slide in crude prices. The bold move by the most important member of the OPEC+ coalition came at the cost of ceding ground to two key allies: Russia, which made no commitment to cut output deeper, and the United Arab Emirates, which secured a higher production quota for 2024. Oil prices advanced on Monday. Saudi Energy Minister Prince Abdulaziz bin Salman said he “will do whatever is necessary to bring stability to this market.” As oil prices are hammered by a softer economic outlook, especially in China, achieving this means shouldering the burden of cuts. The rest of the 23-nation group offered no additional action to buttress the current market, but did pledge to maintain their existing cuts until the end of 2024. The kingdom is doubling down after the previous round of curbs — agreed just two months ago — failed to deliver a sustained price rally. The Organization of Petroleum Exporting Countries announced a surprise supply reduction of about 1.6 million barrels a day in early April, but since then weak economic data from China have weighed on oil futures, which fell 11% in New York in May. West Texas Intermediate jumped almost 5% early in the session on Monday before paring some gains to trade above $73 a barrel. Global benchmark Brent climbed toward $78 a barrel. Next month’s additional cut could be extended, but the Saudis will keep the market “in suspense” about whether this will happen, Prince Abdulaziz said. The minister has repeatedly sought to hurt bearish oil speculators, warning them to “watch out” in the buildup to Sunday’s meeting. “For the near term, crude prices will largely depend on a test of wills between stability-seeking Saudi Arabia and bearish paper traders.” The Saudi effort to bolster the price of its most important export requires the sacrifice of further market share. Global oil demand is forecast to hit a record high this year, but the additional cuts announced on Sunday will bring Saudi production to about 9 million barrels a day in July, the lowest since June 2021 when output was still recovering from the depths of the Covid-19 pandemic. The main winner from the weekend’s OPEC+ talks was the United Arab Emirates, which gets a boost to its production limit for next year at the expense of some African members, which were asked to give up part of their unused quotas. Energy Minister Suhail Al Mazrouei thanked his colleagues for the increase and expressed the country’s loyalty to the cartel.

China slowdown drives Saudi oil production cut - The most significant feature of the decision by Saudi Arabia to cut its production of oil by 1 million barrels a day in July, with a possible extension, is what it says about assessments of the prospects for the world economy. The driving force of the decision, announced following the OPEC+ meeting in Vienna on Sunday, is that the much-touted “recovery” of the Chinese economy after the lifting of anti-COVID heath measures is not taking place, leading to a further slowdown in the world economy and sending down the price of oil. The meeting was held two months after the cartel, which includes many of the world’s major oil producers, announced production cuts to try to sustain prices. But these measures have proven largely ineffective, and the oil price has fallen by 12 percent since the middle of April, touching $70 a barrel at one point last week. Crown Prince of Saudi Arabia Mohammad bin Salman Al Saud [Photo by en.kremlin.ru / CC BY 4.0] Saudi Arabia, under the direction of Crown Prince Mohammed bin Salman, has embarked on a major investment and infrastructure program to try to lessen its dependence on oil production. But the program, which has so far failed to attract significant international investor support, depends on oil revenue to be carried out. The Wall Street Journal has reported that in recent months Saudi policymakers have been warned that “the kingdom needs elevated oil prices for the next five years to keep spending billions of dollars on ambitious projects that have so far attracted meagre investment from abroad.” According to the International Monetary Fund, Saudi Arabia needs an oil price above $80 a barrel to balance its budget and fund major projects. But as the world economy slows—the IMF has forecast that global growth this year will reach its lowest point, apart from the COVID-19 recession, since the financial crisis of 2008-2009—recessionary trends are exerting downward pressure on oil prices.

OPEC lowers its oil output target for 2024 - OPEC+ has reached a deal to extend output cuts into 2024, after the oil cartel and its allies met on Sunday to try to agree further reductions in production. Saudi Arabia will make an additional voluntary cut as part of the deal. Its energy ministry said that the kingdom will extend its 500,000 barrels per day (bpd) voluntary oil cut until the end of 2024, according to the state news agency. Iraq said it will extend its voluntary cut of 211,000 bpd until the end of 2024. Iraq's Deputy Prime Minister for Energy Affairs and Minister of Oil Hayan Abdulaghani Abdulzahra Alsawa (2nd right) arrives for the 35th OPEC (Organization OF Petroleum Exporting Countries) and non-OPEC ministerial meeting in Vienna, Austria, on June 4, 2023. There are growing signs that major oil producers led by Saudi Arabia and Russia are considering slashing production further when they meet on in a bid to prop up prices. (Photo by JOE KLAMAR / AFP) Iraq's Deputy Prime Minister for Energy Affairs and Minister of Oil Hayan Abdulaghani Abdulzahra Alsawa (2nd right) arrives for the 35th OPEC (Organization OF Petroleum Exporting Countries) and non-OPEC ministerial meeting in Vienna, Austria, on June 4, 2023. There are growing signs that major oil producers led by Saudi Arabia and Russia are considering slashing production further when they meet on in a bid to prop up prices. (Photo by JOE KLAMAR / AFP) (Agence France-Presse (AFP)/AFP) The Oman energy ministry stated that it will extend voluntary oil production cut by 40,000 bpd until the end of next year. Though the details of the size of the overall supply cuts by OPEC members are not available, Reuters reported that the oil cartel has lowered its oil output target for next year by 1.4 million bpd versus current output targets. The next OPEC and non-OPEC Ministerial Meeting will be held on Sunday 26 November 2023, in Vienna, the oil cartel said in a statement. According to reports, formal talks were delayed by at least three hours due to members discussions on the side lines about production baselines, from which country quotas and reductions are derived. Top OPEC members lead by Saudi Arabia were trying to persuade under-producing African nations such as Nigeria and Angola to have more realistic output targets, Reuters reported. However, OPEC's production cuts in the past months have not helped in pushing up prices. Oil prices have lost almost 15% after Saudi Arabia announced major supply reductions in April. Prices went up by $9 per barrel to above $87 only to plunge under pressure from concerns due to a recession. Brent prices settled at $76 on Friday.

OPEC cuts Nigeria’s oil output by 20.7% to 1.38 mb/d --THE Organisation of Petroleum Exporting Countries and its allies, popularly known as OPEC+ has slashed Nigeria’s oil output, excluding condensate by 20.7 per cent to 1.38 million barrels per day, mb/d, from 1.74 mb/d in order to achieve stability in the global market.The decision expected to take effect from January 2024 was taken at the crucial meeting of the 49th Meeting of the Joint Ministerial Monitoring Committee (JMMC) and the 35th OPEC and non-OPEC Ministerial Meeting, in Vienna, Austria, monitored by Vanguard, yesterday.Under the organisation’s new voluntary adjustment programme obtained by Vanguard, Saudi Arabia will produce 10.48 mb/d, apparently the highest to be produced by a single nation while Sudan will produce 64,000 bpd, the least.The programme further indicated that OPEC members states, whose collective output stood at almost 25 mb/d still account for a bulk of the global oil output while non-OPEC countries account for 15.5 mb/d.However, OPEC+ stated in a statement that, it remains committed to achieving stability despite many issues and problems in the global market.It stated: “In light of the continued commitment of the OPEC and non-OPEC Participating Countries in the Declaration of Cooperation (DoC) to achieve and sustain a stable oil market, and to provide long-term guidance for the market, and in line with the successful approach of being precautious, proactive, and pre-emptive, which has been consistently adopted by OPEC and non-OPEC Participating Countries in the Declaration of Cooperation, the Participating Countries decided to reaffirm the Framework of the Declaration of Cooperation, signed on 10 December 2016 and further endorsed in subsequent meetings; as well as the Charter of Cooperation, signed on 2 July 2019.” It also agreed to, “Adjust the level of overall crude oil production for OPEC and non-OPEC Participating Countries in the DoC to 40.46 mb/d, starting 1 January 2024 until 31 December 2024, which to be distributed as per the attached table.

OPEC’s Smallest Producer Sees Crude Oil Exports Drop To Zero - Equatorial Guinea, a small West African country and OPEC’s smallest oil producer, did not export any crude oil in May due to output declines and no new projects to replace lost production, Petro-Logistics said on Thursday. So last month, Equatorial Guinea’s crude oil exports hit zero, according to the crude flows tracking firm.Equatorial Guinea, which became a member of OPEC in 2017, pumped an average 289,000 barrels per day (bpd) of crude back in 2015.By April this year, production had shrunk to 59,000 bpd, which was still up by 11,000 bpd compared to March, according to secondary sources in OPEC’s latest Monthly Oil Market Report (MOMR) from May. In the first quarter of 2023, Equatorial Guinea’s crude oil production averaged 54,000 bpd, down from 90,000 in the third quarter of 2022 and an average of 98,000 bpd for the full year 2021.Back in 2021, the country with around 1.45 million residents received half of all its export revenue from petroleum export revenue, according to OPEC data.ExxonMobil, currently the largest oil producer in the country, plans to stop pumping crude in Equatorial Guinea and exit the country after its license expires in 2026, Reuters reported at the end of 2022, citing sources close to the plans.

Oil prices surge as Saudi Arabia announces voluntary output cut Crude oil prices surged over 2% globally on Monday with Saudi Arabia announcing an additional voluntary cut of 1 million barrel per day (bpd) in July. The August contract of Brent on the Intercontinental Exchange was currently 2.10% higher at $77.73 per barrel, and the July contract of West Texas Intermediate (WTI) was at $73.38 a barrel, higher by 2.29% from its previous close. Saudi Arabia’s energy ministry Prince Abdulaziz bin Salman said the country may extend the production cut going ahead and “will do whatever is necessary to bring stability to this market“. The move gains significance as Saudi Arabia is the largest supplier among the members of the Organization of the Petroleum Exporting Countries (Opec). The decision is likely to take the country’s output to 9 million bpd in July from over 10 million bpd in May. Ravindra V. Rao, head of commodity research at Kotak Securities said: “WTI Crude oil futures edged higher after Saudi Arabia surprised markets with an additional 1 mbpd for the month of July, on top of Saudi Arabia’s existing voluntary cut of 0.5 mbpd announced in April. The kingdom also said the latest cut could be extended depending on market conditions. This brings Saudi Arabia’s total production levels to around 9 mbpd in July compared with 10.5 mbpd in April." In case crude oil prices increase, upstream companies like ONGC and Oil India would benefit from higher realizations and cash accruals on crude oil sales, while the marketing profits of oil marketing companies would decline or turn to losses depending upon the extent of the rise, he added. For the Indian economy, an increased crude rate would imply a higher import bill and forex outgo besides having an inflationary impact. With regard to the global economy a higher crude price would lead to inflation thereby accentuating recessionary trends," Volatility in international crude oil prices plays major role for the Indian economy as the country imports around 85% of its energy requirement and cost of energy imports is a major part of the country’s import bill.

Oil Pares OPEC-Fueled Gains as Traders Assess US Macros - Oil futures pared back OPEC-fueled gains during Monday's afternoon session as traders balanced deeper production cuts by Saudi Arabia against weakening macroeconomic data in the United States, showing services -- the largest sector of the economy -- is teetering on the brink of recession. Figures released this morning by the Institute of Supply Management showed business activity in U.S. service industries declined to the lowest level since December 2022 when it briefly dipped into recession. At 50.3%, the U.S. service index is barely in expansion territory, with 50 separating expansion and contraction. "There has been a pullback in the rate of growth for the services sector. This is due mostly to the decrease in employment and continued improvements in delivery times, which are in many ways a product of sluggish demand," said Anthony Nieves, Chair of the Institute for Supply Management, adding that "the majority of respondents indicate that business conditions are currently stable; however, there are concerns relative to the slowing economy." U.S. manufacturing sector, which accounts for a large percentage of diesel fuel consumption, contracted in May for the seventh straight month and is now at the lowest level since the early days of the COVID pandemic in May 2020. The index has already been below 50 for longer than in most mid-cycle slowdowns, generally eight months or fewer, though not as long as in most recessions, which average 11 months or more. Against these headwinds, Saudi Arabia announced a unilateral 1 million bpd production cut effective in July, taking its crude output to a multiyear low, while all members of the OPEC+ alliance agreed to extend voluntary output adjustments of 3.6 million bpd through the end of 2024. The bold move will likely deepen a widely expected supply deficit in the later part of the year, with Rystad Energy estimating a deficit as large as 3 million bpd by the third quarter. What's more, Saudis want to keep the "market in suspense," and will review additional production cuts each month without any forward guidance on the plans to either reverse production cuts or extend them. The UAE production ceiling has been revised higher by 200,000 bpd beginning from January 2024. The Emiratis have emerged as a clear winner of the weekend negotiations, with Abu Dhabi lobbying for a higher output ceiling for over two years.. As for Russia, a country battered by Western sanctions but managed to sustain its pre-war level of crude exports, secured no revisions to its production quotas until the end of 2024 despite its leadership role in OPEC+. Russia has aggressively recaptured market share from its Saudi partner in Asian markets by selling discounted oil barrels. Russian Deputy Prime Minister Alexander Novak attempted to reassure the market that Moscow is "delivering on its oil output commitments and has already achieved the targeted cuts." At settlement, West Texas Intermediate July futures added $0.41 to $72.15 bbl after hitting a five-week high on the spot continuous chart of $75.06 bbl. August Brent contract gained to $76.71 bbl, up $0.58 bbl, also paring an advance to a five-week spot high at $78.73 bbl. NYMEX RBOB July futures advanced $0.0237 to $2.5244 gallon and NYMEX ULSD futures gained $0.0206 to $2.3775 gallon.

Oil prices sink after Saudi-driven rally- Oil prices sank Tuesday as dealers mulled the weak demand outlook after having rallied the previous day on output cuts from key crude producer Saudi Arabia. Europe's Brent oil contract and US counterpart WTI crude fell more than two percent, one day after bouncing on news that Riyadh slashed daily output by one million barrels for July in a bid to prop up prices. The announcement came at a weekend meeting of the 23-nation OPEC+ oil producers' alliance, which also agreed to continue its current production cuts until the end of next year. Saudi glow fades "Oil prices are under pressure... as the glow from Saudi's supply cut fades and the reality of the sluggish demand backdrop sets in," Asian and European stock markets mostly fell as investors also digested a surprise interest rate increase from the Reserve Bank of Australia (RBA). That sparked talk that global central banks were not yet done hiking to combat stubbornly-high inflation. The RBA lifted its main rate by 25 basis points to 4.1 percent, which was the highest level since May 2012. In reaction the Australian dollar jumped more than one percent against the greenback, which traded mixed against the euro and yen. "The RBA's surprise decision...(was) a warning that the major central banks are not done tightening yet," "That, combined to the overbought conditions in stock markets, weighs on sentiment. "We will likely step into a period of profit taking after such a breathtaking and unexpected rally." The tepid equities performance came after a global advance stumbled Monday, with a below-par read on US services sector activity hinting at weakness in a key area of the economy.

Concerns Over Global Economic Growth Outweighed Saudi Arabia's Pledge Over the Weekend to Increase its Output Cuts - The oil market erased Monday’s gains and retraced almost 62% of its move from a recent low of $67.03 to its high of $75.06 on profit taking. Concerns over global economic growth outweighed Saudi Arabia’s pledge over the weekend to increase its output cuts by 1 million bpd to 9 million bpd in July. The market seemed to focus on the risk to demand, with recession concerns increasing as the U.S. service sector barely grew in May. The oil market sold off to a low of $70.13 in overnight trading. However, the market held support at its 62% retracement level at $70.10 and traded back above the $72.00 to a high of $72.33 by mid-day. The July WTI contract later settled in a sideways trading range and ended the session down 41 cents at $71.74, ending a three-day rally. The product markets ended the session mixed, with the heating oil market settling down 97 points at $2.3678 and the RB market settling up 3.99 cents at $2.5643. In its Short Term Energy Outlook, the U.S. EIA increased its 2023 world oil demand growth forecast by 30,000 bpd to 1.59 million bpd. The agency cut its oil demand growth estimate for 2024 by 20,000 bpd to 1.7 million bpd. Total world oil demand is estimated at 101.01 million bpd in 2023 and 102.71 million bpd in 2024. Meanwhile, total world oil output in 2023 is exepcted to increase by 1.52 million bpd to 101.37 million bpd and increase by 1.32 million bpd to 102.69 million bpd in 2024. OPEC crude oil production is forecast to fall by 570,000 bpd to 28.1 million bpd in 2023 and increase by 280,000 bpd to 28.38 million bpd in 2024. The EIA also reported that U.S. oil production increased by 720,000 bpd to 12.61 million bpd in 2023 and by 160,000 bpd to 12.77 million bpd in 2024. U.S. petroleum demand in 2023 is forecast to increase by 150,000 bpd to 20.43 million bpd and by 260,000 bpd to 20.69 million bpd in 2024. In regards to prices, the EIA forecast the price of Brent crude will average $79/barrel in the second half of 2023, $79.54/barrel for all of 2023 and $84/barrel in 2024. S&P Global Commodities at Sea is estimating U.S. gasoline imports jumping to 1.2 million b/d in the week ending June 2nd and up from 833,000 b/d reported by the EIA for the previous week. The ship tracking service also estimates U.S. exported 1.1 million b/d of gasoline during the same week, while distillate exports from the U.S. remained strong at 1.2 million b/d. Citi said Saudi Arabia's pledge to deepen output cuts is unlikely to underpin a sustainable price increase into the high $80s-low $90s. Analysts at Citi said weaker demand and stronger non-OPEC supply by year end, potential recessions in the U.S. and Europe, and lower growth in China could push prices lower rather than higher this year and in 2024. Analysts said prices are expected to be range-bound, with Brent averaging $81/barrel through the year. Meanwhile, HSBC also maintained its Brent price forecast of $93.50/barrel for the second half of the year, predicting negative macroeconomic factors would offset some of the support from the cuts. However, UBS and Barclays were slightly more upbeat. UBS analysts forecast Brent prices at $95/barrel by end-2023 with a supply deficit seen increasing above 2 million bpd. They added the global market balance is likely to remain in a "meaningful deficit" following the broader OPEC+ agreement to extend voluntary cuts to end-2024. Barclays expected the voluntary reduction by Saudi Arabia to slightly increase the deficit in the second half of the year.

Oil Pares Losses after EIA Forecasts Lower OECD Stocks (DTN) -- Oil futures trimmed midmorning losses during the afternoon session Tuesday after U.S. Energy Information Administration forecasted oil inventories across industrialized countries would fall in each of the next five quarters, putting upward pressure on oil prices in late 2023 and early 2024. In its Short-term Energy Outlook released this afternoon, EIA revised higher its price forecast for Brent crude to $79.54 bbl for this year, up from $78.65 bbl seen a month ago and to $83.51 bbl in 2024. The revisions follow Sunday's (6/4) announcement by OPEC+ to extend 3.6 million bpd in production cuts through the end of 2024 and a unilateral output cut of 1 million bpd unveiled by Saudi Arabia. As a result of these curbs, OPEC's crude oil production is now expected to fall by 600,000 bpd in 2023 and then increase again by 300,000 bpd in 2024, which is still lower than EIA's previous forecast for output growth of 600,000 bpd for next year. Oil inventories held in countries that are part of the Organization for Economic Cooperation and Development are seen gradually falling through the third quarter 2024 before reversing the downtrend. Despite the extension of OPEC+ production cuts, EIA still forecasts global oil production would increase 1.5 million bpd in 2023 and by 1.3 million bpd in 2024, primarily because of growth from non-OPEC producers. The oil complex came under selling pressure early in the session as investors refocused on weak demand fundamentals, particularly in the Western economies, where manufacturing industries fell into contraction last year and so far, have shown few signs of improvement. In China, factory activity fell sharper than expected in May on a combination of weaker domestic and international demand that will continue to be a culprit for Chinese factories now facing a "downward spiral." The official manufacturing purchasing managers' index fell to a five-month low of 48.8, the National Bureau of Statistics said last week, down from 49.2 in April, and below the 50-point mark that separates expansion from contraction. At settlement, West Texas Intermediate July futures softened $0.41 to $71.74 bbl after trading near five-week spot high $75.06 bbl in the immediate reaction to the announcement of the Saudi-led cuts. The August Brent contract settled the session at $76.29 bbl, down $0.42 bbl, also paring an advance from a five-week spot high at $78.73 bbl. Moving in the opposite direction, NYMEX RBOB July futures advanced $0.0399 to $2.5643 gallon and NYMEX ULSD futures softened $0.0097 to $2.3678 gallon.

WTI Extends Gains Above Pre-Saudi-Cut Levels As Biden Drains SPR For 10th Straight Week-- Oil prices are holding overnight gains, back above pre-Saudi-cut levels, as a weaker dollar and stronger China imports data buoyed black gold bulls. “There are many uncertainties, as usual, when it comes to the oil market, and if I have to pick the most important one it’s China,” International Energy Agency’s executive director Fatih Birol said in an interview with Bloomberg TV on Wednesday. “Of more than 2 million barrels a day of growth we expect this year in global oil demand, 60% is set to come from China.” Big builds for products reported by API overnight are not a good sign for demand but there was a modest crude draw. API

• Crude -1.71mm (+1.1mm exp)
• Cushing +1.535mm
• Gasoline +2.417mm (+200k exp) - biggest build since Feb 2023
• Distillates +4.50mm (+1.0mm exp) - biggest build since Dec 2022

DOE

• Crude -452k (+1.1mm exp)
• Cushing +1.72mm
• Gasoline +2.75mm (+200k exp) - biggest build since Feb 2023
• Distillates +5.074mm (+1.0mm exp) - biggest build since Dec 2022

The official data confirmed API with a small Crude draw but large product builds... For the 10th straight week, the Biden admin drained the SPR (-1.8mm barrels last week to a fresh 40-year low)... US Crude Production rose last week to its highest since April 2020 despite US drilling activity is in free-fall and showing no signs of slowing. The number of active oil and gas drilling rigs has fallen by 59 in the last five weeks, after falling another 15 in the week to June 2 – all of which were oil-focused rigs WTI was trading around $72.50 ahead of the official data and extended gains after...

The Oil Market Retraced Some of its Previous Losses on Wednesday Amid Unexpected Draws Reported in Crude Stocks - The oil market retraced some of its previous losses on Wednesday amid unexpected draws reported in crude stocks. The crude market traded sideways in overnight trading as it traded towards the $72.00 level on the opening following the release of the API data which showed an unexpected draw of 1.7 million barrels in crude stocks. The market posted a low of $69.88 in overnight trading before it bounced higher and never looked back. The oil market was further supported by the EIA report, which showed a draw in crude stocks of over 450,000 barrels on the week. The crude market rallied to a high of $73.19 by mid-day before it erased some of its gains and traded in a sideways trading range ahead of the close. The July WTI contract settled up 79 cents at $72.53 and August Brent contract settled up 66 cents at $76.95. The product markets also ended the session higher, with the heating oil market settling up 3.4 cents at $2.4018 and the RB market settling up 7.69 cents at $2.6412. The EIA reported that U.S. crude oil stocks unexpectedly fell in the week ending June 2nd as refiners increased crude runs by 482,000 bpd and refinery utilization rates increased by 2.7% percentage points to 95.8%, the highest level since August 2019. The EIA reported that U.S. crude oil field production increased by 200,000 bpd to 12.4 million bpd, the highest level since April 2020. Meanwhile, U.S. crude stocks in the SPR fell by 1.8 million barrels on the week to 353.6 million barrels. IIR Energy reported that U.S. oil refiners are expected to shut in 347,000 bpd of capacity in the week ending June 9th, increasing available refining capacity by 78,000 bpd. Offline capacity is expected to decrease to 65,000 bpd in the week ending June 16th. The Association of American Railroads reported that its weekly railcar loadings on major U.S. railroads in the week ending June 7th increased by 0.4% to 219,289. The number of railcar loadings transporting petroleum and petroleum products increased by 6.6% to 9,078. The OECD said global economic growth will increase only moderately over the next year as the full effects of central bank rate hikes are felt, softening the increase from lower inflation. The OECD said the world economy is set to grow 2.7% this year, up from its previous forecast of 2.6% in March. It said that would be the lowest annual rate since the 2008-2009 global financial crisis with the exception of the pandemic-hit year of 2020. Growth would then accelerate only slightly next year to 2.9%, unchanged from March's forecast, as the impact of rate hikes by major central banks over the last year increasingly drags on private investment, starting with housing markets. The OECD forecast that inflation in the Group of 20 major economies would fall from 7.8% last year to 6.1% this year and 4.7% in 2024. The OECD forecast the U.S. economy would grow 1.6% this year before slowing to 1% in 2024, with the lagged effect of rate hikes hitting the world's biggest economy particularly hard. It had previously foreseen U.S. growth of 1.5% this year and 0.9% in 2024.

Oil Gains as US Refinery Rates Surge Ahead of Summer Demand – New York Mercantile Exchange oil futures and Brent crude traded on the Intercontinental Exchange settled Wednesday's session higher following the weekly inventory report from the U.S. Energy Information Administration showing domestic refiners boosted runs to the highest level since January 2020 following a lengthy maintenance season, partially offsetting a 200,000-barrels per day jump in domestic crude-oil production. While the U.S. dollar sold off early in the session, the greenback recovered in the afternoon and ultimately settled above the 104.00-level against the basket of foreign currencies. Traders expect further volatility in currency markets ahead of next week's highly-anticipated Federal Open Market Committee meeting scheduled for June 14. NYMEX West Texas Intermediate futures for July delivery advanced $0.79 bbl to $72.53 bbl. The front month August contract for the Brent international crude benchmark gained $0.66 to $76.95 bbl. NYMEX RBOB July futures rose $0.0525 to $2.6167 gallon and ULSD July futures gained $0.0243 to $2.3921 gallon. Wednesday's inventory report from the U.S. Energy Information Administration was mostly supportive for the oil complex, showing a surprise draw in commercial crude inventories accompanied by a jump in refinery run rates as refiners prepare for summer driving season. Crude-oil inputs at U.S. refiners surged 481,000 bpd during the first week of June to average 16.6 million bpd, according to the EIA weekly inventory report. The surge follows a prolonged maintenance season that, coupled with unplanned outages, heavily depressed refinery run rates over the past two months. U.S. refinery run rates jumped 2.7% from the previous week to 95.8%, compared to expectations for a modest 0.5% gain. Commercial crude-oil inventories, meanwhile, fell by 452,000 bbl to 459.2 million bbl, and are now 2% below the five-year average, the EIA said. Analysts had expected crude stockpiles to rise by 1.1 million bbl. The drop came despite a 1.9-million-barrel transfer of crude oil last week from the nation's Strategic Petroleum Reserve to the commercial side. Oil stored at Cushing, Oklahoma, the delivery point for West Texas Intermediate, increased by 1.7 million bbl from the previous week to 40.6 million bbl. U.S. crude-oil production jumped by 200,000 bpd to 12.4 million bpd, the highest level since March 27, 2020, according to the EIA. In the gasoline complex, commercial gasoline inventories rose by 2.7 million bbl to 218.8 million bbl, compared with analysts' expectations of just a 200,000-bbl increase. Gasoline supplied to the U.S. market -- a measure of demand -- rose 120,000 bpd during the first week of June to 9.218 million bpd. Four-week average gasoline consumption that smooths out weekly volatility averaged 9.2 million bpd, up by 3.5% from the same period last year. Over the past four weeks, motor gasoline product supplied averaged 9.2 million bpd, up by 1.8% from the same period last year. Diesel stockpiles, meanwhile, built by 5.1 bbl to 111.7 million bbl, and are now about 68% below the five-year average, the EIA said. Analysts had forecast distillate inventories would rise by 1 million bbl last week. Demand for middle of the barrel fuels firmed 168,000 bpd to 3.814 million bpd.

The Market Rallied to its High Early in the Morning Before it Sold Off Sharply on a Report of Progress Toward a Deal Between the U.S. and Iran - The oil market posted an outside trading day, with the market rallying to its high early in the morning before it sold off sharply on a report of progress toward a deal between the U.S. and Iran. The market traded mostly sideways in overnight trading and breached its previous high of $73.19 as it posted a high of $73.28. The market was supported by market expectations of a potential pause to U.S. interest rate hikes by the Federal Reserve at its meeting next week. However, the market erased its gains and sold off sharply by $3.50 to a low of $69.03 on a report that the U.S. and Iran was nearing a temporary deal that would offer some sanctions relief in return for Iran reducing its uranium enrichment activities. The market later bounced off its low and retraced 62% of its earlier losses after the White House called the news report on a deal between the U.S. and Iran false. The July WTI contract settled down $1.24 at $71.29 and the August Brent contract settled down 99 cents at $75.96. The product markets settled in negative territory, with the heating oil market settling down 1.2 cents at $2.3898 and the RB market settling down 2.85 cents at $2.6127. The White House denied a media report that it was near an interim deal that would see Iran curtail its nuclear program in exchange for sanctions relief. A spokesperson for the National Security Council said “This report is false and misleading.” Colonial Pipeline Co is allocating space for Cycle 35 on Line 1, its main gasoline line from Houston, Texas to Greensboro, North Carolina. The current allocation is for the pipeline segment north of Collins, Mississippi. An Enbridge executive said the coming expansion of the Canadian government-owned Trans Mountain pipeline will reduce crude oil flows on Enbridge Inc.'s Mainline oil pipeline. The expansion, which is expected to begin operations in early 2024, initially will reduce Enbridge's Mainline volumes by 200,000 to 300,000 bpd. Enbridge's Mainline carries up to 2.85 million barrels per day of oil from Alberta, Canada, to Manitoba and onto markets in the U.S. A Pioneer Natural Resources executive said global demand for crude oil is continuing to increase but supply growth remains limited. Pioneer Executive Vice President, Beth McDonald, said the impact of recessionary fears on global crude oil also will be offset by Chinese demand. Enterprise Products Partners' Sea Port crude oil export terminal could begin operations between the second half of 2026 and early 2027. Phillips 66 is shutting its fluid catalytic cracking unit at its 285,000 bpd Bayway refinery in Linden, NJ for about two weeks for repairs. Repairs are set to start early next week. The IMF urged the U.S. Federal Reserve and other global central banks to “stay the course” on monetary policy and remain vigilant in fighting inflation.

Oil Slides on Reports of US-Iran Nuclear Deal Progress -- New York Mercantile Exchange oil futures and Brent crude traded on the Intercontinental Exchange settled Thursday's session with sharp losses following unconfirmed reports suggesting the U.S. and Iran have made substantial progress towards reaching a nuclear agreement that could spur on Iranian oil exports.Although the White House quickly dismissed media reports of a breakthrough, oil futures still ended the session lower as markets assessed the potential for a nuclear deal to be reached in the coming weeks. Israel's Haaretz and other regional outlets cited high-ranking Israeli officials who said the talks are moving forward more quickly than expected, with the possibility for the two sides to reach an agreement as early as June. Iran could restore about 1 million bpd of crude-oil production within months of a deal, traders and analysts said last year before talks broke down. It could be back to full capacity of about 3.7 million bpd by next year. The Persian Gulf country's oil exports already climbed to about 1.3 million bpd in November, and last month held near the highest in four years, according to data from Vortexa Ltd. The deal supposedly includes a concession from Iran to stop the process of enriching uranium to higher levels. In return, the regime in Tehran expects the alleviation of the international sanctions spearheaded by the United States. In the first stage, this would include the releasing of some $20 billion in Iranian assets from frozen bank accounts outside of Iran -- located in South Korea, Iraq, and at the International Monetary Fund. The situation remains fluid.In financial markets, investors continue to reassess the future path of the federal funds rate after some Federal Reserve officials suggested the central bank will pause interest rate hikes in future meetings to allow the economy to absorb the full cycle of monetary tightening. Money markets are now pricing in a 66% chance the Fed will resume rate hikes when it meets again in July with either a 25 or 50 basis point move to the upside. For next week's meeting, however, investors bet there will be no change in the federal funds rate that currently stands in a 5% to 5.25% target range.The U.S. dollar index, meanwhile, sold off hard this afternoon, shedding 0.69% against a basket of global currencies to settle at 103.316. NYMEX WTI July futures dropped $1.24 to $71.29 bbl. The front month August contract for the Brent international crude benchmark shed $0.99 to finish at $75.96 bbl. NYMEX RBOB July futures declined $0.0285 to $2.6127 gallon and ULSD July futures weakened $0.0120 to $2.3898 gallon.

Oil Prices Headed For Weekly Loss Despite Saudi Arabia’s Production Cut -- Crude oil was heading for the second week of losses in a row despite the additional production cut Saudi Arabia announced at last Sunday’s OPEC+ meeting.In morning trade in Asia today, Brent crude was changing hands for less than $76 per barrel and West Texas Intermediate was trading at below $71. Both were down from close on Thursday. It appears that traders are still more concerned about oil demand than they are about the adequacy of supply. With news like Germany’s and the eurozone’s recession, a decline in Chinese manufacturing activity instead of continued expansion, and shrinking manufacturing activity in the U.S., demand worry is quite justified. Even the possibility that the Federal Reserve might not announce another rate hike at its next meeting on June 13-14 did nothing to change the dominant sentiment on the oil market.Earlier this week, these new developments prompted Energy Aspects to revise its forecast for oil prices, slashing them by $15 for the second half of the year. As reasons for the revision, the consultancy cited higher interest rates, the inclusion of a U.S. crude into the Brent basket, and the supply differences in sour and sweet crudes.According to Energy Aspects, OPEC is reducing the production of predominantly sour crudes, while Brazil and the United States are expanding the production of sweet crudes that make up both the Brent crude and WTI benchmarks.One additional factor that affected prices this week specifically was a news report that the U.S. and Iran were close to reaching a deal on sanctions and Iran’s nuclear program. Both sides promptly denied the report, which stopped the oil price slide but did not reverse it.There are some expectations that with the start of summer driving season in the U.S. prices will start climbing higher again but any climb could be tempered by demand indications from China.

Oil Posts Second Weekly Decline as Demand Concerns Overshadow Saudi Cut (Reuters) - Oil prices fell more than a dollar a barrel on Friday to record a second straight weekly decline, as disappointing Chinese data added to doubts about demand growth after Saudi Arabia's weekend decision to cut output. Brent crude futures fell $1.17, or 1.5%, to settle at $74.79 a barrel, while the U.S. West Texas Intermediate crude fell $1.12, or 1.6%, to $70.17 a barrel. Both benchmarks lost more than $3 on Thursday after a media report that a U.S.-Iran nuclear deal was imminent and would result in more supply. Prices pared losses after both countries denied the report, ending about a dollar a barrel lower. "The Saudi cut lifted prices slightly, and then the chatter of the potential return of Iranian barrels saw a large drop. Long investors are likely on the sidelines until larger oil inventory declines become visible," Oil prices had risen early in the week, buoyed by Saudi Arabia's pledge over the weekend to cut more output on top of the cuts agreed earlier with the Organization of the Petroleum Exporting Countries and its allies. However, a rise in U.S. fuel stocks and weak Chinese export data have weighed on the markets. "As we move deeper into the summer driving season in the Northern Hemisphere, demand will be a key factor in determining whether limited inventories must drive prices higher, or soft demand leads to lower prices," China's factory gate prices fell at the fastest pace in seven years in May and quicker than forecasts, as faltering demand weighed on a slowing manufacturing sector and cast a cloud over the fragile economic recovery. Some analysts expect oil prices to rise if the U.S. Federal Reserve pauses hiking interest rates at its next meeting over June 13-14. The Fed's decision may also influence Saudi Arabia's next move, analysts said. "The important thing is that despite those changes (Saudi, US-Iran) to output, oil remains below $80, no doubt much to the disappointment of the Saudis," "What comes next may well depend on the inflation data and interest rate decisions over the coming weeks,"

An oil state hired the biggest PR firms to buff its climate image. It didn’t help. -One of the world’s wealthiest oil states is engaged in a wide-ranging public relations and lobbying campaign to cast itself as an environmental leader before it hosts the United Nations’ next climate talks in November.But the United Arab Emirates’ efforts are colliding with a barrage of criticism from lawmakers and environmentalists in both the U.S. and Europe, who scoff at the idea that the oil-flush nation is committed to helping shift the world off planet-heating fossil fuels.Amid the negative headlines, the UAE’s government has signed — and abruptly terminated — long-term contracts with at least two strategic communications firms, even as it offers fat pay packages to veteran PR executives to assist with the effort, according to interviews and Justice Department documents.The communications offensive, which began as far back as 2019, seeks to persuade U.S. officials and the American public that the Persian Gulf state’s plan to expand oil and gas drilling is compatible with international efforts to slash the use of fossil fuels — the main cause of rising temperatures worldwide.During the past decade, the UAE has spent more than $1 million on direct climate-focused advocacy and paid millions more to advisory firms and think tanks helping to polish its green credentials, an analysis by POLITICO’s E&E News of federal disclosure filings found. No other host nation has invested as much time and money to shape its image ahead of the annual climate negotiations.In contrast, the United Kingdom didn’t disclose hiring any American PR or lobbying firms for climate advocacy the year it hosted the 2021 U.N. summit in Glasgow, Scotland, according to past filings under the Foreign Agents Registration Act. During that gathering — when UAE won the right to host this year’s talks — the Emiratis paid two firms more than $314,000 for their U.S.-focused climate influence efforts.Much of the criticism of the UAE’s role this year has focused on Sultan Ahmed al-Jaber, the Emiratis’ climate envoy and CEO of its state-owned oil company, who will serve as the summit’s president. In that position, he will take a lead role crafting the initial negotiating text and guide a final deal with top diplomats at the gathering, known as COP 28.“To have the COP be basically run by the fossil fuel industry sets the bar very, very high for accomplishments,” Sen.Sheldon Whitehouse (D-R.I.) said in an interview earlier this year. “The people running the UAE COP need to do something to show that this is going to be different.”

Iran Reopens Embassy in Saudi Arabia - On Tuesday, Iran reopened its embassy in Saudi Arabia after a seven-year closure, the result of the normalization deal between Tehran and Riyadh that was brokered by China. During a ceremony at the embassy in Riyadh, Iranian Deputy Foreign Minister Alireza Bigdeli hailed the ties between the two nations. “We consider today an important day in the relations of the Islamic Republic of Iran and the Kingdom of Saudi Arabia,” he said. “The cooperation between the countries is entering a new era.”The opening of the Iranian embassy coincided with US Secretary of State Antony Blinken’s arrival in Saudi Arabia. Blinken is expected to meet with Crown Prince Mohamed bin Salman, and his visit comes as the Biden administration is pushing for a normalization deal between Saudi Arabia and Israel.A Saudi-Israeli normalization deal now seems unlikely as Riyadh is focusing on boosting ties with Iran and also recently restored diplomatic relations with Syria. A major aspect of the US and Israeli push for normalization deals with Gulf Arab states is to form an anti-Iran alliance in the region, but Tehran is looking to get ahead of Israel.Iran’s naval commander said last week that Tehran was working to form a naval alliance with Arab states, including the UAE and Saudi Arabia. The comments came after the UAE withdrew from a US-led maritime coalition in the region.However, the Saudis are currently in a good position to extract concessions from the US in exchange for a normalization deal with Israel. According to media reports, Saudi Arabia is seeking stronger security guarantees from the US and wants assistance in developing a civilian nuclear program.

Iran Says It Will Form Naval Alliance With Gulf Arab States - Iran’s navy commander said Friday that Tehran was working to form a naval alliance with several Gulf Arab states, including Saudi Arabia, the UAE, Bahrain, Qatar, and Iraq. “The countries of the region have today realized that only cooperation with each other brings security to the area,” Iranian Navy Commander Shahram Irani said. In response to Irani’s comments, the spokesman for the US Navy’s Bahrain-based Fifth Fleet said Iran forming such an alliance “defied reason” and blamed Tehran for the current tensions in the region. “It defies reason that Iran, the number one cause of regional instability, claims it wants to form a naval security alliance to protect the very waters it threatens,” said spokesman Cmdr. Tim Hawkins.The US recently stepped up its military activity in the Persian Gulf after Iran seized two oil tankers in the region. Missing from the US rhetoric about the issue is the fact that the Iranian actions came after the US seized a tanker carrying Iranian oil and stole its cargo.While the Gulf countries Iran is looking to build an alliance with have a history of being close to the US, diplomatic relationships are shifting in the region. Iran and Saudi Arabia are looking to cooperate more closely after signing a surprise China-brokered normalization deal, and Abua Dhabi and Tehran are also working to forge stronger ties.

White House Says Iran Is Helping Russia Build a Drone Factory -As part of a "deepening" military partnership between Iran and Russia amid the war in Ukraine, US intelligence officials believe Tehran is assisting Moscow in building a drone manufacturing plant that may be operational next year, the White House said on Friday. American officials claim hundreds of Iranian drones were transported to Russia via the Caspian Sea last month.The drones are "shipped across the Caspian Sea, from Amirabad, Iran, to Makhachkala, Russia, and then used operationally by Russian forces against Ukraine," said National Security Council spokesman John Kirby. "As of May, Russia received hundreds of one-way attack [unmanned aerial vehicles], as well as UAV production-related equipment, from Iran," Kirby added.The Islamic Republic insists that it has not provided drones to Russiasince the Kremlin launched its invasion last year.According to Kirby, the alleged drone factory will be built in the Alabuga special economic zone in the Russian republic of Tatarstan. The White House released a satellite photo that purports to show an industrial site, 600 miles east of Moscow in the Yelabuga region, where Russia will "probably" conduct the "domestic production of Iranian designed UAVs."Tehran is said to be providing materials necessary for building the plant as well. The extent of the evidence presented is this photograph and a color coded map showing the ostensible shipping route from Iran to Russia across the Caspian Sea.This story was originally reported in the Wall Street Journalmonths ago, citing foreign officials "aligned" with Washington, but no new or significant evidence appears to have been presented, although media reports portray this declassification as significant.Kirby went on to warn Iran and Russia will be held “accountable" for violating UN Security Council Resolution 2231 that endorsed the Joint Comprehensive Plan of Action, the Iran nuclear deal, which the US illegally exited five years ago.Although, according to the Arms Control Association, this claim is in dispute because the restrictions on weapons Kirby is referring to are related to "importing or exporting nuclear-capable delivery systems or certain components that could be used to develop nuclear-capable delivery systems."A report published by the Stockholm International Peace Research Institute about the UN arms embargo on Iran explains "restrictions on supplies of major arms to and all arms from Iran expired in October 2020."Additionally, for months, officials have warned Iran was considering selling Russia hundreds of ballistic missiles, but administration officials have now said they lack any evidence of deals taking place.The US is also releasing an advisory so other countries and foreign business entities can "better understand the risks posed by Iran’s UAV program and the illicit practices Iran uses to procure components for it," Kirby said. This should "help governments and businesses put in place measures to ensure they are not inadvertently contributing to Iran’s UAV program," Kirby added.Reports this week revealed the US and Iran are engaged in direct talks nearing an interim deal which would see Tehran regain access to $20 billion in frozen assets as well as restart some oil exports. ThoughCongressional hawks along with the Israelis remain strongly opposedto any potential deal with Iran.

US Launches Second Airstrike in Somalia Within a Week - US Africa Command (AFRICOM) announced that it launched an airstrike in Somalia on June 1, marking the second US bombing in the country within a week and the third since May 20.AFRICOM said the strike was launched about 37 miles southwest of Kismayo, a port city in southern Somalia. The command claimed the strike killed three al-Shabaab fighters and that its “initial assessment” found no civilians were harmed, but the Pentagon is notorious for undercounting civilian casualties.The last US airstrike was launched on May 26 and came after al-Shabaab attacked an African Union base housing Ugandan troops. Uganda said on Saturday that 54 of its soldiers were killed in the attack. The US said its airstrike destroyed military equipment that al-Shabaab took from the base. AFRICOM said that the US strike on May 20 wounded one al-Shabaab member. The May 20 airstrike marked the first known US bombing in the country claimed by AFRICOM since February 21.US airstrikes in Somalia escalated toward the end of 2022 and at the beginning of 2023 as the US-backed Mogadishu-based government launched an offensive against al-Shabaab. The US has also stepped up military aid and training of the Somali government’s military.

Russia Says Ukraine Launched a 'Large-Scale Offensive' - The Russian Defense Ministry said early Monday that Ukraine began a “large-scale offensive” by launching attacks along five sections of the frontlines in the eastern Donbas region.According to RT, the ministry said the offensive began early Sunday, and the Ukrainian forces were unsuccessful. “The enemy’s goal was to breach our defenses in what they assumed was the most vulnerable section of the frontline,” the ministry said in a statement.“The enemy has failed to reach its goals and was unsuccessful,” the statement added. The ministry claimed that Ukraine lost 250 soldiers, 16 tanks, three infantry vehicles, and 21 armored vehicles, but the numbers aren’t confirmed. The statement from the Russian Defense Ministry comes after much anticipation of Ukraine’s long-awaited counteroffensive.NATO-trained soldiers are expected to lead Kyiv’s offensive operations,as the Ukrainian war effort is entirely reliant on US and NATO support.The Wall Street Journal reported that Ukraine was sending untrained, poor men into the Bakhmut meatgrinder to preserve professional soldiers for the offensive.While publicly, Biden administration officials are predicting Ukrainian success, leaked Pentagon documents that appeared on Discord andother media reports have shown the US does not think Kyiv can regain much territory.

Zelensky says “a large number of soldiers will die” in new offensive - Ahead of what is promised to be a major new offensive by the Ukrainian Armed Forces, Ukrainian president Volodymyr Zelensky told the Wall Street Journal Sunday that “a large number of [Ukrainian] soldiers will die” in the coming offensive . Hinting at the disastrous human cost of attacking entrenched Russian forces, Zelensky said, “it can go a variety of ways, completely different. But we are going to do it, and we are ready.” As the Journal recounted the exchange, Zelensky acknowledged Russian air superiority on the front lines and said a lack of protection from Russian air power means “a large number of soldiers will die” in the counteroffensive. Typically, troops on the offensive suffer disproportionate casualties to those fighting defensive battles. Zelensky, speaking for his backers and financiers in Washington and the other imperialist capitals, is making it clear that there will be no limit to the number of Ukrainian lives expended to achieve the goal of reconquering Crimea and the Donbas. These comments come as details are emerging about the extent of direct US/NATO involvement in the coming offensive. In an article headlined, “NATO-trained units will serve as tip of spear in Ukraine’s counteroffensive,” the Washington Post notes When Ukraine’s long-awaited counteroffensive finally begins, the fight will be led by brigades armed not only with Western weapons but also Western know-how, gleaned from months of training aimed at transforming Ukraine’s military into a modern force skilled in NATO’s most advanced warfare tactics. It continued, “The counteroffensive will be the biggest test yet of the U.S.-led strategy of giving the Ukrainians weapons and training to fight like an American army might—but on their own.” The United States has been training thousands of Ukrainian forces in armored warfare at its base in Bavaria, Germany, carrying out exercises with NATO armored vehicles. The tanks and their crews left Germany and entered Ukraine through Poland, after which they will be thrown against the Russian front.

Russia Says It Repelled Large Ukrainian Attack in Southern Ukraine -- Russian Defense Minister Sergey Shoigu said Thursday that Russian forces repelled a Ukrainian attack in Ukraine’s southern Zaporizhzhia Oblast as Western media outlets are reporting Ukraine’s counteroffensive has officially begun.“At 1:30 am, the enemy made an attempt with up to 1,500 troops and 150 pieces of armor from the 47th mechanized brigade to break through our defense,” Shoigu said, according to the Russian news agency TASS.“The enemy was halted in all four directions and retreated with heavy casualties,” the Russian military chief said. He claimed that Ukraine lost “30 tanks, 11 infantry fighting vehicles, and up to 350 personnel.”Shoigu’s claims haven’t been confirmed as Ukrainian leadership is keeping quiet about its offensive plans. A US official told The New York Times that it appeared the “main thrust” of Ukraine’s counteroffensive has begun.US officials said earlier this week that the Ukrainian offensive likely started as attacks were reported along the front in the eastern Donetsk oblast. But on Thursday, Western media was full of reports that said Ukraine’s counteroffensive has now officially started.Ukraine’s counteroffensive was expected to focus on the southern Zaporizhzhia and Kherson regions to sever the land bridge Moscow had secured from Crimea to the Russian mainland.The US and NATO have helped prepare Ukraine for its counteroffensive, and some reports say German-made Leopard tanks and US-made Bradley Fighting Vehicles have been spotted near the frontlines in Zaporizhzhia. Chairman of the Joint Chiefs of Staff Gen. Mark Milleyexplained on Monday the massive support the US and NATO have provided Ukraine, including “training and ammunition and advice, intelligence, et cetera.”

Hundreds plucked from flooded homes; Ukraine dismisses counteroffensive reports — Hundreds of Ukrainians were rescued from rooftops in the flood-stricken southern region of Kherson on Thursday after the destruction of a dam submerged villages, fields and roads, as Kyiv dismissed reports a counteroffensive had begun. Drone video showed areas where often only the roofs were visible above the flooding. The region's governor said some 230 square miles were under water. The dam collapse happened as Ukraine prepared a counteroffensive, likely the next major phase in the war in which tens of thousands of people have been killed, millions uprooted and entire cities reduced to ruins since Russia's "special military operation" began on Feb. 24 last year. NBC News, citing a senior officer and a soldier near the front lines, said the offensive had begun. The Washington Post cited "four individuals" in the armed forces saying the same thing. Asked about the reports, a Ukrainian armed forces general staff spokesperson said, "We have no such information." In its daily Ukraine briefing, Britain's defense ministry on Thursday reported heavy fighting along "multiple sectors of the front," adding that Kyiv held the initiative in most areas. Ukraine's military said the flooding in Kherson had forced Russian troops to retreat by three to nine miles and had "practically halved" Russian shelling. Reuters could not independently verify the battlefield situation. Russia did not immediately comment. Russia and Ukraine have traded blame for the bursting of the Soviet-era Kakhovka hydroelectric dam, which sent waters cascading across the war zone of southern Ukraine in the early hours of Tuesday, forcing tens of thousands to flee. Moscow and Kyiv also accused each other on Thursday of shelling the area as rescue workers in rubber dinghies tried to save people and animals from the still rising flood waters. Russian shelling killed a civilian in the Ukrainian city of Kherson, about 37 miles downstream from the dam, on Thursday as people were being evacuated, Ukraine's prosecutor general said. Two people were wounded. A Reuters reporter in Kherson said he could hear what appeared to be artillery fire but could not immediately provide details.

France Objects to NATO Opening Liaison Office in Japan - French President Emmanuel Macron objects to NATO’s plans to open a liaison office in Japan and thinks the alliance should stay in the North Atlantic, Financial Times reported on Monday.NATO’s push to its first office in the Asia Pacific is part of the US’s plans to get its Western allies more involved in its strategy against China in the region. NATO’s plans to open a Japan office were first reported by Nikkei Asia in early May, drawing a rebuke from Beijing.People familiar with the matter told Financial Times that France’s position has complicated NATO talks on the Japan office, which have been ongoing for months. A French official said that Paris believes the NATO charter limits the alliance’s geographic range to the North Atlantic.Macron has said publicly that he doesn’t think NATO should expand beyond the North Atlantic. “If … we push Nato to enlarge the spectrum and the geography, we will make a big mistake,” the French leader said last week.All 31 NATO members need to agree to open a new liaison office, meaning France could potentially block the move. News of France’s position comes nearly two months after Macron said Europe should not follow the US into a conflict with China over Taiwan.

Palestinian Toddler Muhammad Tamimi Dies Days After Israeli Forces Shot Him in Head - A two-and-a-half-year-old Palestinian boy shot in the head last week by Israeli forces—who initially denied shooting the toddler—succumbed to his wounds on Monday. Muhammad Tamimi and his father, Haytham Tamimi, were in their parked car outside their home in Nabi Saleh village near Ramallah in the illegally occupied West Bank of Palestine last Thursday when they came under fire from Israeli troops. Israeli officials initially claimed the Tamimis were shot by "terrorists" before admitting the pair was likely hit by mistake, expressing "regret" over the incident, and stating that the shootings were "being investigated in depth," according toThe Times of Israel."The question is," said British journalist and Palestinian rights advocate Ben White, "what accountability will there be for the Israeli soldier(s) who opened fire into a Palestinian community and shot a two-year-old in the head? The track record isn't promising."About half an hour after the father and son were shot, an IDF jeep "stormed the village and started firing live bullets directly at the houses," according to the Palestinian-led International Solidarity Movement (ISM).ISM said 17-year-old Wissam Tamimi, who was standing on the roof of his family's home, was struck in the head with a sponge-tipped roundand suffered a fractured skull.

A Man Without a Strategy: How Netanyahu is Provoking Armed Intifada in the West Bank - After signing a military decree on May 18, allowing illegal Israeli Jewish settlers to reclaim the abandoned Homesh settlement located in the northern Occupied West Bank, the Israeli government has informed the US Biden Administration that it will not turn the area into a new settlement.The latter revelation was reported by Axios on May 23. This contradiction is hardly surprising. While Israel’s far-right ministers, Itamar Ben-Gvir and Bezalel Smotrich, know precisely what they want, Netanyahu is trying to perform an impossible political act: he wants to fulfill all the wishes of Ben-Gvir and Smotrich, but without veering off from the US political agenda in the Middle East, and without creating the circumstances that could eventually topple the Palestinian Authority.Moreover, Netanyahu wants to normalize with Arab governments, while continuing to colonize Palestine, expand settlements and have complete control over Al-Aqsa Mosque and other Palestinian Muslim and Christian holy shrines.Worse still, he wants, per the insistence of Ben-Gvir and his extremist religious constituency, to repopulate Homesh and create new outposts, while avoiding an all-out armed rebellion in the West Bank. Concurrently, Netanyahu wants good relations with the Arabs and Muslims, while constantly humiliating, oppressing and killing Arabs and Muslims. Indeed, such a feat is virtually impossible.Netanyahu is not a novice politician who is failing at appeasing all his target audiences simultaneously. He is a right-wing ideologue, whouses the Zionist ideology and religion as the foundation of his political agenda. Anywhere else, especially in the Western world, Netanyahu would have been perceived to be a far-right politician. One of the reasons that the West is yet to brand Netanyahu as such is that if there is a general agreement that Netanyahu is an affront to democracy, it would be difficult to engage with him diplomatically. While the likes of Italy’s far-right government of Giorgia Meloni,hosted Netanyahu last March, US President Joe Biden is yet to meet the Israeli leader in person, months after the latter composed his latest government of far-right religionists.Netanyahu is aware of all these challenges, and that his country’s reputation, even among allies, is in tatters. The Israeli leader, however, is determined to persevere, for his own sake.

BRICS currency gambit a timely warning to the buck - On the sidelines of the recent BRICS gathering in Cape Town, South Africa, officials contemplated as rarely before the five most dangerous words in economics: things are different this time.For years now, Brazil, Russia, India, China, South Africa and other emerging economies hoped to break the dollar hegemony that complicates geopolitical calculations. In Cape Town, BRICS foreign ministers presided over what might be remembered as the moment the anti-dollar movement grew genuine legs.In the lead-up to the confab, BRICS members urged the bank that the grouping set up to study how a joint currency might work — logistics, market infrastructure and how sanctions against Russia play into things.Equally important is the flurry of foreign exchange arrangements popping up that exclude the dollar: China and Brazil agreeing to settle trade in yuan and reals; France beginning to conduct some transactions in yuan; India and Malaysia increasing use of the rupee in bilateral trade; Beijing and Moscow trading in yuan and rubles.The 10-member Association of Southeast Asian Nations (ASEAN) is joining forces to do more regional trade and investment in local currencies, not dollars. Indonesia, ASEAN’s biggest economy, is working with South Korea to ramp up transactions in rupiah and won.Pakistan is angling to begin paying Russia for oil imports via yuan. The United Arab Emirates is talking with India about doing more non-oil trade in rupees.Over the weekend, Argentina announced it plans to double its currency swap line with China to roughly US$10 billion. It’s partly desperation as Argentina’s foreign currency reserves evaporate amid 109% inflation that has its central bank in damage control mode. But it’s also a sign of the rising anti-dollar movement in South America.“Despite America’s likely opposition, de-dollarization will persist, as most of the non-Western world wants a trading system that does not make them vulnerable to dollar weaponization or hegemony,” says Frank Giustra, co-chair of the International Crisis Group. “It’s no longer a question of if, but when.” For now, the five BRICS nations are pooling $100 billion of foreign currency to act as a financial shock absorber. The funds can be tapped in emergencies, allowing members to avoid going to the International Monetary Fund. Since 2015, the BRICS bank has approved more than $30 billion of loans for infrastructure, transportation and water.The BRICS currency issue has been gaining greater traction since mid-2022, when the 14th BRICS Summit was held in Beijing. There, Russian President Vladimir Putin said the BRICS were cooking up a “new global reserve currency” and were open to expanding its usage more widely.In April, Brazilian President Luiz Inacio Lula da Silva threw his support behind a BRICS monetary unit.“Why can’t an institution like the BRICS bank have a currency to finance trade relations between Brazil and China, between Brazil and all the other BRICS countries?” he asked. “Who decided that the dollar was the trade currency after the end of gold parity?” The focus, Brazilian Finance Minister Fernando Haddad says, must be phasing out the use of a third currency.“The advantage is to avoid the straitjacket imposed by necessarily having trade operations settled in the currency of a country not involved in the transaction,” he told reporters.Lula may get his answers in August when the BRICS summit of heads of state is held in Johannesburg. The desire for a BRICS version of the euro might get a boost from countries like Egypt,Indonesia, Turkey and Saudi Arabia joining.

The New York Times and the use of Nazi imagery by Ukrainian troops - The New York Times palms off the deep historical and present-day links of Ukrainian nationalism to Nazism and genocide as merely “thorny issues,” i.e., a public relations problem for media propagandists, who are trying to sell NATO’s proxy war as a struggle for democracy. The Times references photographs showing Ukrainian soldiers who “wore patches featuring symbols that were made notorious by Nazi Germany and have since become part of the iconography of far-right hate groups.” The NYT admits that the media “quietly” deletes such photos. The newspaper opines, “The photographs, and their deletions, highlight the Ukrainian military’s complicated relationship with Nazi imagery, a relationship forged under both Soviet and German occupation during World War II.” Fascist iconography glorifying mass murder, “including a skull-and-crossbones patch worn by concentration camp guards and a symbol known as the Black Sun, now appears with some regularity on the uniforms of soldiers fighting on the front line...” The major concern of the NYT is the political impact of the Ukrainian identification with Nazism and mass murder on international public opinion. It quotes Michael Colborne, who prior to the war wrote extensively on the neo-Nazi Azov Battalion: "What worries me, in the Ukrainian context, is that people in Ukraine who are in leadership positions, either they don’t or they’re not willing to acknowledge and understand how these symbols are viewed outside of Ukraine." The NYT notes: So far, the imagery has not eroded international support for the war. It has, however, left diplomats, Western journalists and advocacy groups in a difficult position: Calling attention to the iconography risks playing into Russian propaganda.

Over 150,000 teachers on strike in Romania - More than 150,000 Romanian teachers are engaged in a national strike that started on May 22. The strike is part of a growing upsurge of the class struggle across Europe. Romanian teachers join workers in the UK, Spain, Portugal, France and Germany, who are engaged in mass protests and strikes against austerity. Health care and railway workers in Romania are also engaged in protests against low wages and dangerous working conditions. These struggles pose sharply the questions of political organization and perspective. Teachers are confronted not only by a Grand Coalition PSD-PNL (Social Democratic Party-National Liberal Party) government but also by the corporatist union apparatus, with the strike developing increasingly against the trade union federations. Thousands of teachers have gathered in towns and cities across Romania to protest. On the 30th of May, a large rally took place in Bucharest, with over 20,000 teachers as well as many workers and pensioners from the city who joined in support. The rally started in Victory square, the seat of the government, and ended in front of the presidential palace. Georgeta and Mihaela work in a special needs school. They were protesting the low wages and the desperate situation of special-needs education, which is starved of funds and threatened with closure. Gherghina, a retired teacher, lamented teachers’ declining living conditions over the past decades and said of government politicians that “austerity should begin with them.” Bogdan, a teacher from Bucharest, explained that the government is not paying teachers their bonuses or correctly applying the salary law. He said that the strike should continue and that “it is not the union leaders that get to decide when the strike ends. The teachers will decide.”

Bank Of Canada Ends "Pause" With Unexpected Rate Hike To 4.75%, A 22-Year High -- Two days ago Australia shocked the market when it unexpectedly hiked rates to 4.1%, an 11 year high, and warned of more hikes to come. Today, it was Canada's turn. Moments ago the BOC also hiked its overnight rate to 4.75% - the highest rate since 2001 - surprising median consensus which expected the central bank to extend its "pause" and remain unchanged from last month at 4.50%. The hike was expected by only about one in five economists in a Bloomberg survey, and markets had put the odds at about a coin flip. The Bank of Canada said that the "overall, excess demand in the economy looks to be more persistent than anticipated,” the bank said in its rate statement, which wasn’t accompanied by a new set of forecasts.... Governing Council decided to increase the policy interest rate, reflecting our view that monetary policy was not sufficiently restrictive to bring supply and demand back into balance and return inflation sustainably to the 2% target." The bank also said that it "will be evaluating whether the evolution of excess demand, inflation expectations, wage growth and corporate pricing behaviour are consistent with achieving the inflation target" and added that it "remains resolute in its commitment to restoring price stability for Canadians." Some more details from the statement: