week ending Jun 3

Federal Reserve Likely to Skip Interest Rate Hike at Next Meeting in June, Officials Signal -(AP) — Leading Federal Reserve officials are sending out stronger signals that they will forego an interest rate increase at the central bank's next meeting in June, though they indicate hikes could resume later this year. “Skipping a rate hike at a coming meeting would allow (Fed policymakers) to see more data before making decisions” about whether to further increase rates, said Fed Governor Philip Jefferson in a speech Wednesday. Philadelphia Fed President Patrick Harker made similar comments Wednesday. Jefferson has been nominated by President Joe Biden to be the Fed's vice chair, though he has yet to be confirmed by the Senate. But his nomination places him close to the center of Fed policymaking. Including Jefferson, three top Fed officials have been united in support of the idea of skipping a rate hike in June, despite a slew of tough talk from other Fed policymakers and a disappointing inflation report last week. On May 19, Fed Chair Jerome Powell hinted that he also supported pausing rate hikes at the June meeting, to give the Fed time to evaluate the economic impact of its previous rate increase. And John Williams, president of the Federal Reserve Bank of New York, another key member of the Fed's leadership, has also indicated he would prefer to hold off from lifting rates at the June meeting. “All the pieces of a skip are here and told more forcefully than in past weeks," Tim Duy, chief U.S. economist at SGH Macro Advisors, said. The Fed has implemented 10 straight rate hikes over the past 14 months, pushing its benchmark interest rate to about 5.1%, the highest in 16 years. The rate increases have made mortgages, auto loans, credit card borrowing, and business loans more expensive. Fed officials hope that higher rates will slow spending, cool the economy, and bring down inflation. Tough talk on inflation from other Fed officials continued this week. Loretta Mester, president of the Cleveland Fed, expressed support for another hike in June during an interview published Wednesday in the Financial Times. "I don’t really see a compelling reason to pause — meaning wait until you get more evidence to decide what to do,” she said. “I would see more of a compelling case for bringing (rates) up.” And last Friday, a report showed that U.S inflation picked up to 4.4% in April, compared with a year ago, up from 4.2% in March, according to the Fed's preferred inflation measure. That is far above the Fed's target of 2%. Excluding the volatile food and energy categories, core prices rose 4.7% from a year ago, also higher than the previous month.

Treasury yields fall as Fed speakers suggest skipping rate hike in June - Treasury yields fell on Wednesday after two Federal Reserve officials suggested that the central bank could skip an interest-rate increase at its June policy meeting, while traders awaited a House vote on the debt-ceiling deal negotiated by Speaker Kevin McCarthy and President Joe Biden to prevent a potential default. What happened What drove markets U.S. treasury yields declined on Wednesday after Federal Reserve officials signaled they were inclined to keep the policy interest rate steady at the next meeting in June, allowing policymakers to see more economic data before making decisions about the extent of additional monetary tightening. "I am in the camp increasingly coming into this meeting thinking that we really should skip, not pause, but skip an increase," Philadelphia Fed President Patrick Harker said on Wednesday. Meanwhile, Fed Gov. Philip Jefferson on Wednesday said that even if the central bank opts to skip another increase in interest rates in June, it would not necessarily mean it is done for the year. "A decision to hold our policy rate constant at a coming meeting should not be interpreted to mean that we have reached the peak rate for this cycle," Jefferson said in a speech in Washington. D.C. Markets priced in a 27.5% probability that the Fed will raise interest rates by 25 basis points to 5.25% to 5.50% after its meeting on June 14, down from 70% Wednesday morning, according to the CME FedWatch tool. In U.S. economic data, the Chicago Business Barometer, also known as the Chicago PMI, fell 8.2 index points to 40.4 in May, according to MNI Indicators. Economists polled by The Wall Street Journal forecast a 47.3 reading. This is the ninth straight reading below the 50 threshold that indicates contraction territory. Meanwhile, job openings in the U.S. climbed in April to a three-month high of 10.1 million, another sign the economy hasn't cooled enough to forestall more interest-rate increases by the Federal Reserve. Economists polled by The Wall Street Journal had forecast job listings to total 9.5 million. Traders also closely watched the debt-ceiling House vote in Washington, which is expected to take place around 8:30 p.m. ET Wednesday. Elsewhere, soft economic data from China on Wednesday revived global economic growth concerns and encouraged buying of government bonds, also pushing U.S. Treasury yields lower. Purchasing managers surveys showed manufacturing in the world's second biggest economy contracted in May and the service sector expanding at its slowest pace in four months.

Why May’s Jobs Data Complicates Inflation Picture for the Fed - Federal Reserve officials have signaled that they could hold interest rates steady at their upcoming meeting in June — pausing after 10 straight rate increases to assess whether their changes so far are sufficient to slow the economy and wrestle down rapid inflation. Central bankers may remain on track for that more patient approach even after jobs data released on Friday showed strong hiring in May. While employers are still adding workers, other aspects of the report, including a jump in unemployment and a slowing in wage gains, muddled the signal coming from the data. Investors seemed to think that the complicated employment report could make the Fed’s decision more challenging — but not so much that it would be a game changer. Wall Street nudged up the probability of a rate move this month after the report, based on financial market pricing. Even so, they still saw only a one-in-three chance of an increase. Fed officials have raised rates sharply over the past year and a half, pushing them to a range of 5 to 5.25 percent, up sharply from near zero at the start of 2022. After all of that adjustment, policymakers have been preparing to stop moving rates up at every meeting. Pausing will allow their policies more time to play out while reducing the risk that policymakers go too far. Officials want economic growth to slow, because they think a cool-down is necessary to bring inflation back under control. But at the same time, they do not want to tank the economy and cause a more painful pullback than is necessary by overdoing their policy reaction. Several central bankers have said or suggested that they could leave rates steady as soon as their June 13-14 meeting, allowing them to assess how the economy is reacting to both their policy changes and recent bank turmoil. Higher interest rates cool the economy by making it more expensive to take out a loan to buy a house or car, but they take time to have their full effect. Businesses gradually pull back on expansion plans and cut back on hiring as higher borrowing costs take a toll. That should ultimately bring about weaker wage growth and a slower economy. That is why job market data are so critical: They are a referendum on how well policy is working to cool the economy, and they hint at whether inflation is likely to slow down. Officials have been worried that rapid wage growth could prod companies to keep increasing prices rapidly as they try to prevent heftier wage bills from eating into profits. Friday’s figures did offer some evidence that the Fed’s policies are working as expected. The unemployment rate climbed to 3.7 percent, from 3.4 percent in the previous reading, and wage growth slowed slightly. Yet employers added 339,000 jobs in May, vastly more than economists had expected and a pickup from the previous month. And that was on the heels of several months of rapid job gains. The conflicting evidence — of softening on one hand and resilience on the other — owed in part to the fact that the jobs report is made up of two different surveys, each of which sent a different signal in May. The job market split screen could make the Fed’s task in figuring out how to set policy more challenging. But abnormally strong hiring alone may not be enough to dissuade Fed officials who want to hit pause. The other details of the report — from hours worked to the jobless rate — confirmed that the economy is cooling, said Julia Coronado, founder of MacroPolicy Perspectives. The big gain in payrolls “is the anomaly here,” she said. “Everything else speaks to a cooling in the labor market.”

Fed’s Bullard: Prospects for continued disinflation are good but continued vigilance is required - Federal Reserve Bank of St. Louis President James Bullard recently published an analysis titled 'Is Monetary Policy Sufficiently Restrictive?' in which he compares the policy rate under the Taylor rule to the Fed's policy rate. According to Bullard, “monetary policy is now in better shape after the rate hikes." “The prospects for continued disinflation are good but not guaranteed, and continued vigilance is required”, said Bullard. According to this analysis, monetary policy was about right shortly before the COVID-19 pandemic, as the actual policy rate was within the zone. During the pandemic, the policy rate recommended by the Taylor-type rules went to zero along with the actual policy rate. However, the policy rate was below the zone in 2022, suggesting that monetary policy was behind the curve at that point. But since the FOMC has raised the policy rate aggressively during 2022 and into 2023, monetary policy is now at the low end of what is arguably sufficiently restrictive given current macroeconomic conditions. Monetary policy is in much better shape today with the policy rate at a more appropriate level than it was a year ago, according to this analysis. But where within the sufficiently restrictive zone should the policy rate be? And are there other factors to consider (e.g., financial stability)? Such assessments could be reflected in judgments by the FOMC going forward. While both headline and core PCE inflation have declined from their peaks in 2022, they remain too high. An encouraging sign that inflation will decline to 2% comes from market-based inflation expectations, which had moved higher in the last two years but have now returned to levels consistent with the 2% inflation target. The prospects for continued disinflation are good but not guaranteed, and continued vigilance is required. Bullard's words are having a muted impact on the market. The US Dollar is holding onto significant daily losses, driven by rising expectations of a potential pause at the Fed's next meeting.

Fed’s Balance Sheet Plunged by $348 Billion in the 10 Weeks since Peak Bank Crisis, and by $580 billion since QT Started by Wolf Richter - Total assets held by the Fed dropped by $50 billion in the week, to $8.38 trillion, down by $118 billion for the month and by $348 billion in the 10 weeks since peak-bank-crisis. Quantitative Tightening (QT) continued on track, and as the remaining bank liquidity support measures continued to unwind, according to the Fed’s weekly balance sheet today. From the historic peak of the balance sheet in April 2022, total assets have dropped by $580 billion. This month, total assets will fall below where they’d been before the banking crisis, and will set a new low in this QT cycle. To see the details of the banking crisis, here are total assets viewed through a magnifying glass: The banking crisis measures. Repos with “foreign official” counterparties: paid off in April. The Swiss National Bank likely used this program to provide dollar-liquidity support for the take-under of Credit Suisse by UBS. Discount Window: nearly paid off, down to $4 billion. Since the last rate hike, the Fed charges banks 5.25% to borrow at the Discount Window (or “Primary Credit”), and banks have to post collateral valued at “fair market value.” So this is expensive money for banks, and they pay it off as soon as they can. Bank Term Funding Program (BTFP): +1.7 billion in the week, to $94 billion. Under this program, rolled out on March 13, banks can borrow for up to one year, at a fixed rate, pegged to the one-year overnight index swap rate plus 10 basis points. Banks have to post collateral, but valued “at par.” So this is still expensive money, but less expensive money than the Discount Window, so some banks paid off the Discount Window loans with proceeds from BTFP loans. The amount borrowed at both facilities combined had peaked in mid-March at $165 billion and has since then dropped to $98 billion. And so we put them on the same chart to see the flows between them, the loans at the Discount Window (red), and the loans at the BTFP (green): Loans to FDIC: -$5 billion in the week, -$40 billion for the month to $188 billion. That spike in the week through May 3 was caused when JP Morgan acquired the assets of First Republic from the FDIC. JPM paid the FDIC $182 billion for those assets. The payment came in different forms (we walked through the details here). To make the $182 billion payment, JPM also obtained a $50 billion loan from the FDIC, similar to when you buy a shack with a collapsed roof for $182,000, and you pay $132,000 in various ways to the seller, including some cash, and the seller provides a $50,000 interest-bearing loan that you have to pay back to the seller over the next five years. It’s that loan that caused this spike because the FDIC borrowed this $50 billion from the Fed. The FDIC is now busy selling the assets – mostly loans and securities – that it took over from the collapsed Silicon Valley Bank and Signature Bank. As it sells those assets and closes the deals, and returns the funds to the Fed, the loan balances to the FDIC drop. QT continued on track throughout the banking crisis. Treasury notes and bonds: -$30 billion for the week, -$58 billion for the month, -$607 billion from the peak in June 2022, to $5.16 trillion. Treasury notes and bonds “roll off” the balance sheet mid-month or at the end of the month when they mature and the Fed gets paid face value for them. The roll-off is capped at $60 billion per month, and about that much usually rolls off. But the $368 billion of inflation-indexed TIPS (Treasury Inflation Protected Securities) that the Fed holds earn inflation protection pegged on the current CPI rate. Unlike interest, this inflation compensation is not paid in cash, but is added to the principle of the TIPS, which causes the balance of the TIPS to increase by that amount, which keeps the roll-off just under the $60 billion cap in most months. MBS: -$12 billion for the week, -$17 billion for the month, -$182 billion from peak, to $2.56 trillion. The Fed only holds government-backed “Agency MBS,” and taxpayers carry the credit risk, not the Fed. The way mortgage-backed securities come off the balance sheet is primarily via pass-through principal payments that holders receive when mortgages are paid off – when mortgaged homes are sold or mortgages are refinanced – and when regular mortgage payments are made. The reduction in MBS has been below the monthly cap of $35 billion per month because fewer mortgages are getting paid off because home sales have plunged and refis have collapsed, and passthrough principal payments to the Fed have slowed: From crisis to crisis to raging inflation. This is the long view of total assets on the Fed’s balance sheet: (see graphs)

With a debt deal pending, changes are coming to the Fed's balance sheet — With a tentative deal in place to raise the cap on U.S. government borrowing, changes are coming to the Federal Reserve's balance sheet. For the Treasury Department to replenish its depleted operating account at the central bank, other holdings at the central bank will have to decrease. For the Fed, which wants a smaller balance sheet, such a rebalancing could be a net positive — but only if it doesn't disrupt financial stability along the way. "The fear is that it's mostly going to come out of reserve balances, meaning it's coming out of the banking system. If there's already reserve scarcity — not in the aggregate, but at individual banks — then taking out more reserves is going to stress the system even further," said Derek Tang, founder of the Washington-based research firm Monetary Policy Analytics. "But that's not necessarily how it's going to pan out." The Fed's balance sheet totals $8.4 trillion. Its assets include securities and lending facilities. Its liabilities include currency, commercial bank cash — known as reserves — obligations for reverse repurchase agreements — or repos — and the Treasury General Account. Since the U.S. hit the debt ceiling in January, the Treasury has drawn down its general account from more than $570 billion to less than $50 billion, paying out liabilities faster than it can generate revenue. Once the agency is free to issue debt again, rebuilding its pool of operating capital is expected to be a top priority. "The Treasury likes to hold enough cash to pay a week's worth of bills. That has typically translated to a cash balance of around $600 to $700 billion. As of Thursday, the cash balance was $39 billion," said Stephen Stanley, chief U.S. economist at Santander US Capital Markets. "So the Treasury is going to want to ramp up borrowing quickly to get the cash balance back to normal." The Treasury is expected to rebuild its account by issuing short-term securities known as Treasury bills, or T-bills, which mature after one year or less. The question is whether this debt will be purchased by bank depositors, leading to an outflow of reserves, or by money market funds, leading to a reduction in the Fed's overnight reverse repurchase program, or ON RRP. Steven Zeng, rates strategist at Deutsche Bank, said this could have implications both on banks' cost of funding and the Fed's future actions on shrinking its balance sheet. "If reserves drain too quickly, then it could potentially disrupt or derail the Fed's plans for [quantitative tightening]," Zeng said. "But, if reserves drain at a slower pace than ON RRP balances, then the Fed should be able to continue running QT in the background uninterrupted."\

Beige Book Shows US Economy Turning More Sluggish - The Fed's latest beige book released this afternoon was a boring affair, one signaling the US economy remained sluggish at best, and describing economic activity as "little changed overall in April and early May." Four Fed districts reported small increases in activity, six no change, and two slight to moderate declines. Expectations for future growth deteriorated a little, though contacts still largely expected a further expansion in activity. A summary of the big picture:

• Consumer expenditures were steady or higher in most Districts, with many noting growth in spending on leisure and hospitality.
• Education and healthcare organizations saw steady activity on balance.
• Manufacturing activity was flat to up in most Districts, and supply chain issues continued to improve.
• Demand for transportation services was down, especially in trucking, where contacts reported there was a "freight recession."
• Residential real estate activity picked up in most Districts despite continued low inventories of homes for sale.
• Commercial construction and real estate activity decreased overall, with the office segment continuing to be a weak spot.
• Outlooks for farm income fell in most districts, and energy activity was flat to down amidst lower natural gas prices. Financial conditions were stable or somewhat tighter in most Districts.
• Contacts in several Districts noted a rise in consumer loan delinquencies, which were returning closer to pre-pandemic levels.
• High inflation and the end of Covid-19 benefits continued to stress the budgets of low- and moderate-income households, driving increased demand for social services, including food and housing.

Turning to labor markets, the Beige Book notes that "employment increased in most Districts, though at a slower pace than in previous reports." Overall, the labor market continued to be strong, with contacts reporting difficulty finding workers across a wide range of skill levels and industries. That said, contacts across Districts also noted that the labor market had cooled some, highlighting easier hiring in construction, transportation, and finance. Many contacts said they were fully staffed, and some reported they were pausing hiring or reducing headcounts due to weaker actual or prospective demand or to greater uncertainty about the economic outlook. Staffing firms reported slower growth in demand. As in the last report, wages grew modestly.

Update on US Government Holy-Moly Debt, Interest Expense, and Tax Receipts, and How they Stack Up Against GDP by Wolf Richter - US government interest expense shot up over the past four quarters in line with higher interest rates and the ballooning pile of debt. At the same time, tax revenues fell from the peak levels in 2022 and are back where they’d been in Q4 2021, which had been a record high at the time. So, interest expense as percent of tax revenues – the primary measure of the burden of the national debt on government finances – spiked to 32.9% in Q1, from 19.3% in Q1 2022. But wait… that 19.3% a year ago had been the lowest since 1969, thanks to the Fed’s interest-rate repression through early 2022 and high tax revenues from the growing economy, wage inflation, and big realized capital gains as people sold assets to lock in their many years of gains. In the 1980s, interest expense as a percent of tax receipts was around 50%. In the decades since then, Congress has been footloose and fancy-free about its spending and taxing policies, and there hasn’t been any discipline, no matter who runs the show. It’s just that priorities shift. A high interest-expense burden might be the only discipline left that will put some common sense into these people in Washington. This is the holy-moly gross national debt, and how it ballooned under the last 2.5 years of the Trump administration and the first 2.5 years of the Biden Administration. Over that 5-year period, the debt has ballooned by $10.5 trillion, or by 50%, whereof $6.7 trillion under Trump and $3.8 trillion under Biden. Over the days after the debt ceiling gets lifted, the gross national debt will spike in massive leaps, as it always does after the debt ceiling is lifted, because the debt ceiling never actually limits the debt, and we’ll have some fun with that as it happens. And all this will be tacked on shortly (indicated in green in the chart below). Spending bills are cobbled together and passed by Congress, though Presidents are big players in that game: The US debt-to-GDP ratio dipped to 119% in Q1, having steadily declined from the spike in Q2, 2020, as nominal GDP (not adjusted for inflation) has surged, driven in part by inflation, and as the debt (also not adjusted for inflation) has surged at a slower rate. Nominal GDP reflects economic growth plus inflation. Nominal GDP jumped by 7.8% in Q1 year-over-year. But the national debt jumped by “only” 3.4%, not counting the hundreds of billions that will be tacked on to it over the days following the lifting of the debt ceiling. In other words if economic growth plus inflation are higher than the growth of the debt, the magnitude of the debt in relationship of the economy declines. The Free-Money era – the Fed’s near-0% policy rates plus QE – created the biggest borrowing binge by the US government, as Congress and the various White Houses fully bought into this concept that money will forever be free and that debt doesn’t matter because debt is free too – though it now suddenly matters a lot because money and debt are no longer free: Interest expenses on the national debt spiked to $232 billion in Q1 (not seasonally adjusted), a new record obviously, because of the mix of the ballooning national debt and the much higher interest rates on newly issued Treasury securities that replace maturing securities or fund the new deficits. After the debt ceiling is raised this week, the Treasury department will issue a tsunami of Treasury bills, with interest rates well above 5%, and they will add to that interest expense in short order:

Will The Debt Deal Pass Smoothly Or Will Congress Spoil It In The Last Minute? -- So, a debt deal is done, and now all that remains is for it to be articulated in a bill that can pass through Congress and be signed off by the President. This is by no means a fait accompli, but there should be sufficient support from both Republicans and Democrats to get it over the line before Janet Yellen’s revised X-date of next Monday. Early reports over the weekend suggest that a bill will come before Congress on Wednesday, with the hope of a speedy passage through both the House and Senate. Neither side is happy with the terms of the agreement, which probably suggests that it strikes the right balance. The debt ceiling will be suspended for two years, which is just long enough to see Biden through to the other side of the 2024 presidential election. Republicans have extracted spending concessions from Biden that limit growth in non-essential spending to 0% in fiscal 2024 and just 1% in fiscal 2025. That represents a real-terms cut, but wasn’t enough for some of the fiscal hawks in the Republican Party who have pointed out that given that the national debt will hit $35 trillion in 2025 under this deal. Likewise, progressive Democrats are upset that Biden has agreed to any spending cuts at all. If the deficit had to be reduced, those members favored tax increases as the means to do it. Despite the Sturm und Drang it looks like the debt can has been kicked down the road once again and that financial repression remains the only real debt reduction strategy that has any prospect of actually working.Of course, this would require some help from our friends at the Fed. The flow of data on Friday threw up some new challenges for the Fed’s thinking on the future path of the Fed Funds rate. The Core PCE deflator for April came in hot at 0.4% m-o-m vs expectations of 0.3%, and a prior read of just 0.1%. Likewise, personal spending in April lifted by twice as much as expected: up by 0.8%. That’s particularly striking given that personal income only rose by 0.4% in the month, and growth in spending was flat in the month prior. St Louis Fed data shows that average revolving credit balances have grown from the fourth quarter to the first quarter for the last two years, which represents one of the strongest gains we have seen since the mid-2000s. So, reading between the lines, it appears that Americans are spending more, but they are using credit to do it. That sounds an awful lot like Congress (until now, at least), and must weigh on the thinking of the Fed, whose primary tool for slowing the economy is to make that big stock of credit more expensive.On that subject, the Cleveland Fed’s Loretta Mester suggested that a June rate hike was still a possibility, while noting that “progress on inflation is slow, concerning” and that it would be a mistake for the Fed to under-tighten and allow inflation to persist. She also said that she may revise up her inflation estimate at the June meeting and that she believes the Fed does need to tighten further, even if it doesn’t happen in June. A similarly hawkish Thomas Barkin of the Richmond Fed described labor demand in skilled trades as “crazy hot”, but Susan Collins of the Boston Fed was a little more sanguine. She said that the Fed is at, or near a pause in the hiking cycle, which is a view shared by Rabobank’s Fed expert Philip Marey. The strong run of data over the last few days has seen the traders up their bets on the future path of rates to the extent that a further hike is now fully priced in by July.

White House to Dems: The debt deal could have been a LOT worse - The White House has a simple message to Democrats skeptical of the debt ceiling agreement the president cut with Speaker Kevin McCarthy: Don’t judge us by what’s included but what we kept out.Top administration officials began fanning out late Saturday evening and all through Sunday to sell the deal, which would suspend the debt ceiling through January of 2025, limit federal spending through the same period, and make changes to government social welfare programs.The calls with stakeholders and lawmakers were generally positive, according to three people familiar with the overall feedback and who spoke on condition of anonymity to describe private conversations. And it left the White House feeling generally positive about cobbling the votes together from their side of the aisle to give the bill a chance of passage. The White House’s optimism is based on centrist Democrats in the House and Senate who voiced cautious optimism about the agreement until they could read full details — which weren’t released until late Sunday.But success is far from guaranteed. Progressives have expressed frustration over new work requirements in two government assistance programs — TANF and SNAP — along with the spending caps. They gripe that the White House never should have engaged in anything resembling negotiation around the debt limit.But White House aides stressed, essentially, that in a divided government, things could have been a lot worse.“It protects the historic economic gains we’ve made, really allowing one of the strongest recoveries on record to continue by taking the threat of default off the table into 2025, it protects a set of historic legislative accomplishments that this president has had over the last two and a half years,” a White House official told reporters on a briefing call Sunday. “And it beats back a set of extreme demands” in the House GOP debt limit bill.According to a senior administration official granted anonymity to describe the lobbying strategy, the argument being made to Democrats to vote for the bill has focused on how Medicare, Social Security, Medicaid, the Inflation Reduction Act, CHIPS and other programs are “all being preserved and funded” under the agreement. This is, the official added, “basically what would have happened in a standard budget negotiation with a GOP House later this year. A good outcome, consistent with past bipartisan budget agreements.”

Total Farce: Real Spending Under Debt Ceiling Deal Actually Goes Up Next Year - Late last week, we were the first to correctly summarize what the bottom line of the so-called "debt ceiling deal" meant for the US, for future generations of Americans, and for the ridiculous melodrama gripping Washington: a -0.2% of GDP cut in nominal spending.That's right: that 0.2% cut in spending is what all the brewhaha was over, a cut which will not only push total debt to $35 trillion by the end of Biden's term, but will not even put a dent in the long-term US debt trajectory which even the CBO has no problem as showing in its full, hyperinflationary glory.Still, to Kevin McCarthy who "negotiated" on behalf of America's conservatives, that paltry, laughable nominal "spending reduction" was apparently something to be very proud of, as he repeatedly pointed out on his twitter feed...In its post-mortem of the debt ceiling deal published this evening, Goldman summarizes the outcome as follows: "the spending deal looks likely to reduce spending by 0.1-0.2% of GDP yoy in 2024 and 2025, compared with a baseline in which funding grows with inflation. That said, the boost to funding Congress approved late last year for FY23 was so large (nearly 10% yoy) that overall discretionary spending is likely to be slightly higher in real terms next year despite the new caps."Translation: the "deal" may result in a nominal 0.1% drop in spending (just for next year, after that it ramps up again), but adjusted for inflation, spending in 2024 will be higher yet again!Below we excerpt several highlights from the Goldman note, first focusing on the probability of the deal becoming enacted; according to Goldman, the deal is "very likely to pass both chambers of Congress in the coming week" although there are two points of uncertainty in the House.

• First, the Rules Committee will meet to vote Tuesday (May 30) afternoon/evening on the rule for debate on the debt limit bill, a necessary step before the vote on the House floor. The committee has 9 Republicans and 4 Democrats, but 2 of those Republicans (Reps. Roy and Norman) appear to oppose the bill, with the position of a third (Rep. Massie) unclear. If all three vote against and no Democrat votes in favor, the bill will fail. (Goldman thinks the Rules Committee is very likely to send the bill on to the House Floor, as a majority of the committee will vote for the package even if it takes Democratic support - it is uncommon but not unheard-of for the minority party to support the majority party's efforts in the Rules Committee).
• Assuming Rules Committee passage on Tuesday, the House is likely to vote late on Wednesday (May 31). While it is not entirely clear how Republican and Democratic lawmakers will divide the responsibility for passing this legislation–most lawmakers likely want it to pass but few want to vote for it. As such Goldman is confident that a failed vote in the House is very unlikely. Assuming the House clears the bill Wednesday, the Senate is unlikely to vote on final passage before Friday (June 2) and procedural delays could easily push the vote into the weekend. That said, there is less uncertainty regarding support in the Senate than there is in the House, so this is more a question of timing than outcome.

... and second, why the so-called spending cuts are a joke:

'Kevin Caved': McCarthy Savaged Over Debt Ceiling Deal -- After President Biden and House Speaker Kevin McCarthy (R-CA) struck a Saturday night deal to raise the debt ceiling, several Republicans outright rejected it before it could even be codified into a bill. The hits just keep coming for Speaker Kevin McCarthy, as angry Republicans have been outright rejecting the debt ceiling deal which raises it by roughly $4 trillion for two years, doesn't provide sticking points sought by the GOP.In short, Kevin caved according to his detractors.Some Democrats aren't exactly pleased either."None of the things in the bill are Democratic priorities," Rep. Jim Himes (D-CT) told Fox News Sunday. "That's not a surprise, given that we're now in the minority. But the obvious point here, and the speaker didn't say this, the reason it may have some traction with some Democrats is that it's a very small bill."Here's what's in it;

• The deal raises the debt ceiling by roughly $4 trillion for two years, and is consistent with the structure of budget deals struck in 2015, 2018 and 2019 which simultaneously raised the debt limit.
• According to a GOP one-pager on the deal, it includes a rollback of non-defense discretionary spending to FY2022 levels, while capping topline federal spending to 1% annual growth for six years.
• After 2025 there are no budget caps, only "non-enforceable appropriations targets."
• Defense spending would be in-line with what Biden requested in his 2024 budget proposal - roughly $900 billion.
• The deal fully funds medical care for veterans, including the Toxic Exposure Fund through the bipartisan PACT Act.
• The agreement increases the age for which food stamp recipients must seek work to be eligible, from 49 to 54, but also includes reforms to expand who is eligible.
• Claws back "tens of billions" in unspent COVID-19 funds
• Cuts IRS funding 'without nixing the full $80 billion' approved last year. According to the GOP, the deal will "nix the total FY23 staffing funding request for new IRS agents."
• The deal includes energy permitting reform demanded by Republicans and Sen. Joe Manchin (D-WV)
• No new taxes, according to McCarthy.

Graham Criticizes Defense Spending In Debt Ceiling Deal: "Biggest Winner Of Biden Defense Budget Is China" - Sen. Lindsey Graham (R-S.C.) warned House Speaker Kevin McCarthy (R-Calif.) that China would be the beneficiary of the U.S. defense budget proposed in the tentative debt ceiling deal.“I respect Kevin McCarthy. I want to raise the debt ceiling. It would be irresponsible not to do it. I want to control spending. I’d like to have a smaller IRS. I’d like to claw back the unused COVID money. I know you can’t get the perfect—but what I will not do is adopt the Biden defense budget and call it a success,” Graham told Fox News on May 28.“Kevin said that the defense is fully funded. If we adopt the Biden defense budget, it increases defense spending below inflation,” Graham added.“The Biden defense budget was a joke before, and if we adopt it as Republicans we will be doing a great disservice to the party of [former President] Ronald Reagan,” he added. “The biggest winner of the Biden defense budget is China because they’ll have a bigger navy.”The debt ceiling agreement negotiated between the White House and Republican leaders in the House would cap defense funding at President Joe Biden’s defense budget request, at $886 billion in fiscal 2024, about a 3.5 percent increase. That is below the current rate of inflation, which was 5 percent in March and 4.9 percent in April.

Republican Ralph Norman to vote against US debt ceiling bill in committee if not amended - (Reuters) - Representative Ralph Norman, a hardline conservative Republican, said he will vote against the debt ceiling bill when it comes before the U.S. House Rules Committee later on Tuesday, if it is not amended.

Facing GOP backlash, McCarthy labors to shore up votes for debt deal in time to prevent US default (AP) — Under fire from conservatives, House Speaker Kevin McCarthy worked strenuously Tuesday to sell fellow Republicans on the debt ceiling and budget deal he negotiated with President Joe Biden and win approval in time to avert a potentially disastrous U.S. default. Leaders of the hard-right House Freedom Caucus lambasted the compromise as falling well short of the spending cuts they demand, and they vowed to try to halt passage by Congress. A much larger conservative faction, the Republican Study Committee, declined to take a position, leaving McCarthy hunting votes.With tough days ahead, the speaker urged skeptical GOP colleagues to “look at where the victories are.” Unhelpfully for Biden, he said of the Democrats on ”Fox and Friends,” “There’s nothing in the bill for them.”A key test was coming late Tuesday, when the House Rules Committee was to consider the 99-page bill and vote on sending it to the full House for a vote expected Wednesday evening. The Rules Committee debate was filled with objections from both the left and right. Yet, in a notable development, conservative Republican Rep. Thomas Massie of Kentucky said he would vote in favor of advancing the bill to the House floor, almost ensuring it would clear the first hurdle.Quick approval by both the House and Senate would ensure government checks will continue to go out to Social Security recipients, veterans and others, and prevent financial upheaval worldwide by allowing Treasury to keep paying U.S. debts. The deal would restrict spending over the next two years, but it includes environmental policy changes and expanded work requirements for some older food aid recipients that Democrats strongly oppose.The Republican speaker said he would be talking with lawmakers in the evening as they return to Washington from the long Memorial Day weekend ahead of crucial votes. “This is just the first step,” McCarthy said of his agreement with Biden. With few lawmakers expected to be fully satisfied, Biden, a Democrat, and McCarthy, a Republican, are counting on pulling majority support from the political center, a rarity in divided Washington, to prevent a federal default. Some 218 votes are needed for passage in the 435-member House. House Democratic leader Hakeem Jeffries said it was up to McCarthy to turn out votes from some two-thirds of the Republican majority, a high bar the speaker may not be able to reach. Still, Jeffries said the Democrats would do their part to avoid failure.“It is my expectation that House Republicans would keep their promise and deliver at least 150 votes as it relates to an agreement that they themselves negotiated,” Jeffries said. “Democrats will make sure that the country does not default.”

Gaetz: Passing debt deal without Republican majority would ‘likely trigger an immediate motion’ to oust McCarthy - Rep. Matt Gaetz (R-Fla.) said on Tuesday that passing a debt deal without a Republican majority in the House would trigger an “immediate” motion to oust Speaker Kevin McCarthy (R-Calif.). “If a majority of Republicans are against a piece of legislation and you use Democrats to pass it, that would immediately be a black letter violation of the deal we had with McCarthy to allow his ascent to the Speakership, and it would likely trigger an immediate motion to vacate,” Gaetz told Newsmax. “I think Speaker McCarthy knows that,” he added. “That’s why he’s working hard to make sure that he gets, you know, 120, 150, 160 votes. And that’s why those of us who are not supportive of the bill are trying to point out that many of the changes are cosmetic in nature.” Gaetz is one of at least 25 House Republicans — out of 222 members of the Republican conference — who have said they will not vote for the deal struck by McCarthy and President Biden to raise the debt ceiling. However, the Florida Republican said Friday, before an agreement had been reached, that he saw “no serious threat” to McCarthy’s Speakership and predicted the deal would pass with “about 80-100 Democrat votes and between 140-160 Republican votes.” “Literally nobody except the press is talking about removing McCarthy right now,” Gaetz said on Twitter last week. Gaetz was among a group of 20 hard-line conservatives who held up McCarthy’s Speakership election in January, ultimately securing an agreement to lower the threshold to force a vote on ousting the Speaker to just one member. However, even amid some conservative backlash to his deal with Biden, McCarthy said Sunday that he was “not at all” concerned about losing his leadership position.

McCarthy faces potential threat to Speakership over debt limit deal -- Speaker Kevin McCarthy (R-Calif.) faces a potential threat to his leadership, as hardline conservatives pile on criticism over a deal he negotiated with President Biden to avert a federal default next week. Rep. Dan Bishop (R-N.C.) signaled his support for a motion to oust McCarthy as Speaker over the debt limit deal during a press conference on Tuesday, telling reporters: “I think it’s got to be done.” He’s the first Republican to publicly indicate support for the move, but there has been more chatter around the idea since the deal was announced over the weekend. Rep. Ken Buck (R-Colo.) said in an interview with “Meet The Press” on Tuesday that he raised the prospect during a call held between members of the House Freedom Caucus recently. “What I said was that Speaker McCarthy had promised spending limits at the 2022 level. This deal calls for spending limits above the 2022 level,” Buck said. “And I was asking my colleagues in the House Freedom Caucus, whether they were considering a motion to vacate as a result of a broken promise,” he continued. While he added Rep. Scott Perry (R-Pa.), who chairs the caucus, said the idea was “premature,” Buck also said it is still under consideration among some members. Rep. Chip Roy (R-Texas), who has been among the loudest conservatives in his criticism against the debt limit deal, has also signaled openness to the idea. “If I can’t kill it, if we can’t kill it on the floor tomorrow, then we’re going to have to then regroup and figure out the whole leadership arrangement again,” Roy said on Tuesday during an appearance on conservative radio host Glenn Beck’s show.

First Republican publicly supports ousting McCarthy as Speaker Rep. Dan Bishop (R-N.C.) on Tuesday became the first Republican to publicly support ousting Speaker Kevin McCarthy (R-Calif.) over the debt ceiling deal he struck with President Biden as conservative criticism of the agreement ramps up. At a House Freedom Caucus press conference Tuesday, members vented their frustration with the agreement and urged their colleagues to vote against it, but Bishop was the sole Republican to raise his hand signifying he would support a motion to oust McCarthy over the bill. “I think it’s got to be done,” Bishop told reporters after the press conference. The latest in politics and policy. Direct to your inbox. Sign up for the News Alerts newsletter Enter Your Email Subscribe But Bishop did not commit to filing a motion to vacate the chair, which would trigger a vote on removing McCarthy as Speaker. “I’ll decide that in conjunction with others,” Bishop said. Hard-line conservative Republicans had for months brushed off questions about whether they would seek to replace McCarthy as Speaker if he struck a debt limit deal that did not meet their standards. But members of the House Freedom Caucus and beyond were infuriated the debt limit bill announced over the weekend did not do more to cut spending and complained other provisions Republican leadership touted had massive loopholes. “I want to be very clear: Not one Republican should vote for this deal. Not one. If you’re out there watching this, every one of my colleagues, I’m gonna be very clear: Not one Republican should vote for this deal,” Rep. Chip Roy (R-Texas) said. “It is a bad deal.”

Here are the House Republicans who said they will vote against debt ceiling bill - House GOP leaders are racing to secure support for the debt ceiling deal that Speaker Kevin McCarthy (R-Calif.) struck with President Biden as they face growing criticism from Republicans. The bill needs a simple majority to clear the House and head to the Senate, and many Democrats are expected to support the measure, helping it to get across the finish line in a slim GOP majority. But Republican leaders face political pressure to have as many Republican votes as possible in favor of the legislation — preferably having more Republicans vote for the bill than Democrats. Anything less than a majority of the 222 House Republicans voting for the bill would be politically devastating for GOP leadership. Some Republicans are already announcing their intent to oppose the bill ahead of Wednesday’s high-profile vote, ranging from hard-line conservative members of the House Freedom Caucus — such as Rep. Andy Biggs (R-Ariz.) — to a first-term member who was a top recruit for Republican leadership in the 2022 election cycle, Rep. Wesley Hunt (R-Texas). Here are the House Republicans who say they will vote against the bill. (long list)

Greene leaning toward yes on ‘s— sandwich’ debt bill — but she also wants impeachment -- Rep. Marjorie Taylor Greene (R-Ga.) said Tuesday that she’s inclined to support the bipartisan debt ceiling proposal set to hit the House floor Wednesday, but she first wants to secure a commitment from GOP leaders to move several other proposals in the future, including the impeachment of President Biden or a top cabinet official. “If you have to eat a shit sandwich, you want to have sides, OK? It makes it much better,” Greene told reporters just outside the Capitol office of Speaker Kevin McCarthy (R-Calif.). “So what I’m looking for is, I’m looking for some sides and some desserts.” Greene named two “sides” in particular: A vote on a balanced budget amendment and another on legislation to prevent the hiring of new IRS agents — not only in 2024, as the bipartisan debt-limit bill would do — but also in the years to follow. President Biden last year signed legislation providing the IRS with $80 billion over a decade to streamline customer service, update technology and hire auditors to go after those who don’t pay the taxes they owe. Republicans have attacked the extra funding, arguing falsely that the IRS intends to use it to hire 87,000 new agents to target middle-class workers, particularly Republicans. “There were audits and conservative groups were targeted,” Greene said. “One of the sides … I would like to see with this shit sandwich is a way to completely wipe out the 87,000 IRS agents.” Then she named her “beautiful dessert.” “Somebody needs to be impeached,” Greene said. She singled out Alejandro Mayorkas, the secretary of the Homeland Security Department, as “the lowest hanging fruit” in the eyes of Republicans for his handling of the migrant crisis at the southern border. “The border is a serious issue that matters to everyone all over the country, even the Democrat mayor of New York City, the Democrat mayor in Chicago, and just people everywhere,” she said. Lax security at the border has also allowed the flow of illicit drugs from Mexico, Greene continued, which in turn has contributed to the deadly fentanyl crisis across the United States. “Three hundred Americans are dying every single day,” she said. “Mayorkas, and I argue Biden as well — President Biden — both of them should be impeached for that.”

Ocasio-Cortez says she’s voting against debt limit bill | The Hill - Rep. Alexandria Ocasio-Cortez (D-N.Y.) is planning to vote against the debt limit bill Wednesday as the Treasury Department’s June 5 deadline for a default fast approaches, according to her office. The New York lawmaker, one of the highest-profile progressives in Congress, had earlier signaled she would oppose the legislation. “My red line has already been surpassed,” Ocasio-Cortez said earlier this month. “I mean, where do we start? [No] clean debt ceiling. Work requirements. Cuts to programs. I would never — I would never — vote for that.” Other progressives have also expressed concerns with the legislation, as have a number of lawmakers on the other side of the aisle, raising questions about whether Congress will be able to pass it in time. House Speaker Kevin McCarthy (R-Calif.) and President Biden announced Saturday that they had reached a tentative agreement on a debt ceiling deal after weeks of tough negotiations between the two sides. McCarthy released the text of the bill the next day. Even with the agreement, some House Republicans have said they plan to vote against the debt ceiling bill, including Rep. Nancy Mace (R-S.C.), Rep. Chip Roy (R-Texas.) and Rep. Wesley Hunt (R-Texas.). But the legislation cleared a key hurdle Tuesday night after the House Rules Committee advanced the bill on a 7-6 vote, with Roy and Rep. Ralph Norman (R-S.C.) joining Democrats to oppose it. While that marks a necessary victory for proponents of the bill, its fate is not yet certain, as both parties look to rally their members ahead of a floor debate Wednesday.

Debt ceiling bill takes back COVID money - House Republicans are racing to build support for a compromise bill to raise the debt ceiling. Speaker Kevin McCarthy (R-Calif.) and President Biden can both point to health wins in the bill, though its full impact isn’t known yet. The deal before Congress would claw back about $30 billion in unspent COVID-19 funds from federal agencies. This gives Republicans a major political win, as they have repeatedly pressed the White House for a full accounting of how the COVID-19 pandemic funds have been spent — and have refused to give the administration more money. What’s not totally clear yet is just what the unspent money would have been used for, as the White House has not publicly clarified the specific areas where the cuts will come from. Public health experts said without more details, it will be tough to say exactly what specific impacts the funding rescissions will have. What is clear is the relatively small impact the COVID funds have compared with the country’s current $925 billion deficit. Left untouched will be roughly $5 billion in funding to develop next-generation coronavirus vaccines and treatments. There will also be money available to help pay for the uninsured to access those vaccines and treatments on the commercial market. The legislation also won’t impose work requirements on Medicaid beneficiaries. That was a red line for the White House, and the Congressional Budget Office estimated the policy would have resulted in roughly 600,000 people losing health coverage. But it would tweak existing work rules for the federal food stamp program, as well as on families who use welfare benefits. The food stamp provision will raise the work requirement age limit from 49 to 54 for people without dependents. Changes to the Temporary Assistance for Needy Families will require states to ensure that a higher percentage of their welfare beneficiaries are working.

Jeffries vows Democrats will deliver House votes to prevent default House Minority Leader Hakeem Jeffries (D-N.Y.) said Tuesday that House Democrats will provide the votes for debt ceiling legislation to move through the lower chamber and help to prevent an unprecedented default June 5. While the House is controlled by Speaker Kevin McCarthy (R-Calif.) and his Republican conference, a revolt from conservatives means GOP leaders will need Democrats to help move the package through the House and on to the Senate. The precise number remains unknown, but it will likely be in the dozens. Jeffries did not set a bar for the number of Democrats who would support the package when it hits the floor Wednesday, and he said McCarthy has not asked for one. But he vowed that Democrats would, at the very least, fill in the shortfall created by the defection of the conservatives. “House Democrats will make sure that the country does not default,” Jeffries told reporters in the Capitol. Jeffries had been at the table in the earliest stages of the talks, but the negotiations were subsequently pared down to feature only President Biden, McCarthy, and their appointed deputies. The act of cutting House Democrats out of the direct talks has frustrated members of the caucus, particularly liberals who are critical of the spending cuts, among other provisions, in the final agreement. Jeffries is well aware of those frustrations and has sought to put most of the responsibility for passing the package on the backs of McCarthy and the majority Republicans who cut the deal with Biden. He said McCarthy had promised the White House that he could deliver two-thirds of the GOP conference — or 148 votes — and Jeffries said he’ll hold the Speaker to it. “It is my expectation that House Republicans will keep their commitment to produce at least two-thirds of their conference, which is approximately 150 votes,” he said. “Democrats are committed to making sure that we do our part and avoid a default.” Behind the Progressive and Black caucuses, liberal Democrats had vowed that they would oppose any debt ceiling package that included tougher work requirements for social benefit programs — a threat backed by Jeffries, who called those changes a nonstarter. The agreement negotiated by Biden and McCarthy would stiffen those rules for programs like food stamps, applying the work requirements to certain able-bodied adults through age 54 — up from the current age of 49. But as a sweetener for Democrats, the deal also eases the work requirement rules for certain groups of people — including veterans — and exempts Medicaid beneficiaries from the new rules. It’s unclear if those provisions will be enough to win over wary liberals, but Jeffries suggested he is on board, saying the deal “protects incredibly important Democratic interests.”

House Republican says there won’t be a default if debt bill fails - Rep. Bob Good (R-Va.) on Tuesday waved off concerns that there would be a default if Congress fails to pass the current proposal to raise the debt ceiling. “There’s no default. That’s a silly, scary narrative,” Good said in an interview on NewsNation’s The Hill, adding, “It only takes $70 billion a month to pay the interest on the nation’s debt, which of course, that’s a true default when you can’t pay your interest on your debt, you can’t meet your obligation.” “We’ve got about $400 billion a month coming into the Treasury,” he continued. “The problem is we’re spending $500 billion a month, and this deal continues that trajectory, doesn’t do anything to address it.” Good is one of at least 29 House Republicans who have said they will not support the deal struck by Speaker Kevin McCarthy (R-Calif.) and President Biden to raise the debt limit. “So no, there’s not going to be some kind of catastrophic default if we don’t pass this bill,” the Virginia Republican added. “It just would complicate things, make it problematic that we can’t continue to borrow and spend $100 billion a month.” However, Treasury Secretary Janet Yellen has warned that the U.S. will run out of money if lawmakers do not agree to raise the debt ceiling by June 5, something economists have predicted could be disastrous for the economy. Yellen has also pushed back on the concept of prioritizing interest payments over other obligations, calling that “default by another name.” “We should not think that prioritization is a solution to the debt ceiling issue,” Yellen told CBS News back in March. “Prioritization is simply not paying all of the government’s bills when they come due.”

Rick Scott says he will oppose bill to raise debt limit -- Florida Sen. Rick Scott (R) says he will vote against proposed legislation to raise the debt limit until 2025 in exchange for cuts to domestic discretionary spending, signaling a battle on the Senate floor if the legislation passes the GOP-controlled House. “This bill leaves us with trillions more in debt & no clear path to less inflation or a balanced budget. I appreciate the work @SpeakerMcCarthy did to try & negotiate a good deal when @JoeBiden refused to engage, but I cannot support this bill,” Scott tweeted, referring to Speaker Kevin McCarthy (R-Calif.) and President Biden. Scott, who ran to replace Senate Republican Leader Mitch McConnell (Ky.) atop the conference in November, urged members of his leadership team to support amendments to the legislation. “Now is our moment to get America back on the path of fiscal sanity. Getting serious about America’s debt isn’t something we can compromise on. If this passes the House, the Senate must take amendment votes and Senate Republican Leadership must stand with everyone working to improve this bill,” he tweeted. Sens. Mike Lee (R-Utah) and Rand Paul (R-Ky.) have also signaled opposition to the bill.

Debt ceiling deal includes surprise approval of natural gas pipeline championed by Manchin - The text of the debt ceiling bill released on Sunday would approve all the remaining permits to complete the stalled Mountain Valley Pipeline, delivering a big win for West Virginia Sens. Joe Manchin and Shelley Moore Capito. But the backing of the pipeline that would deliver gas from West Virginia into the Southeast is sure to set off bitter complaints from the environmental groups that have fought its construction for years and turned the project into a symbol of their struggle against fossil fuels.Manchin hailed the bill’s language, saying finishing the pipeline would lower energy costs for the United States and West Virginia.“I am proud to have fought for this critical project and to have secured the bipartisan support necessary to get it across the finish line,” he said in a statement.The bill agreed by the White House and House Republicans must still be approved by both chambers of Congress, which is expected to happen in the coming week. “After working with Speaker McCarthy and reiterating what completing the Mountain Valley Pipeline would mean for American jobs and domestic energy production, I am thrilled it is included in the debt ceiling package that avoids default,” Capito, a Republican, said in a statement. “Despite delay after delay, we continued to fight to get this critical natural gas pipeline up and running, and its inclusion in this deal is a significant victory for the future of West Virginia.”The project has won support from the White House, which argues the controversial project is needed for U.S. energy security. Its approval comes after the approval of the Willow oil project in Alaska, which activists have said undercuts the Biden administration’s climate promises.Including the project in the debt bill came as a surprise that wasn’t revealed by either negotiating side until the release of the bill text Sunday night.The bill approves all outstanding permits for the pipeline, which has suffered court setbacks.

Debt limit bill would speed completion of West Virginia gas pipeline -- A bipartisan debt limit bill struck by President Joe Biden and House Republicans over the weekend would expedite approval of all permits for a West Virginia natural gas pipeline and curtail environmental reviews under one of the country's landmark environmental laws. The Mountain Valley Pipeline, which has been promoted by Sen. Joe Manchin, D-W.Va., would transport natural gas 303 miles from West Virginia to the Southeast, and part of it would cross through the Jefferson National Forest. The construction of the $6.6 billion pipeline is nearly done, though plans have been delayed for several years amid legal setbacks.Climate and civil rights activists and some state Democrats have strongly opposed the pipeline. Scientists have repeatedly warned that the country must halt approvals for new fossil fuel projects and quicken the clean energy transition to avoid the worst effects of climate change.While the Biden administration has imposed an aggressive climate agenda, the president has also taken steps to boost fossil fuel production and work with Manchin and Republicans, who've argued the president's climate agenda is endangering U.S. energy security.Critics of the Mountain Valley Pipeline say it will run through predominantly rural, low-income Indigenous communities and will undermine the country's efforts to curb fossil fuel emissions and pollution that disproportionally harms environmental justice communities. "The dirty debt ceiling deal is essentially an assault on our climate and working families. It is a climate bomb ... and health threat to every community in its pathway," Jean Su, energy justice program director at the Center for Biological Diversity, said during a call on Tuesday. "It's incredibly vital that Congress vote on a clean debt ceiling deal."Proponents say the pipeline is vital to bolstering U.S. domestic energy security, and that the plan was already near completion and set to move forward.The debt limit bill expedites the pipeline's federal permits and limits judicial review. Still, the project could still be held up or blocked by lawsuits.U.S. energy company Equitrans Midstream Corporation earlier this month said it anticipated to finish the pipeline by the end of the year, but added "there remains significant risk and uncertainty, including regarding current and likely litigation.""President Biden protected his historic climate legislation, stopped House Republicans from clawing back record funding for environmental justice projects and secured a deal to get hundreds of clean energy projects online faster all while protecting the full scope of environmental reviews," Abdullah Hasan, a White House spokesman, said."We believe this is a bipartisan compromise that Congressional Democrats can be proud of and that will accelerate our clean energy goals and climate agenda," Hasan said.The deal would also streamline the National Environmental Policy Act (NEPA), a landmark environmental regulation, to limit its requirements on some projects.The agreement would designate "a single lead agency" to develop environmental reviews in order to speed the process, and shorten the time the federal government takes to analyze a proposed plan's environmental impact.Environmental groups argued the NEPA provision would further curtail the public's ability to provide input on fossil fuel projects that would harm overburdened communities. A letter from 175 groups on Tuesday urged Senate Majority Leader Chuck Schumer, House Minority Leader Hakeem Jeffries and members of Congress to vote on a clean debt ceiling bill.

Manchin pipeline in debt ceiling deal prompts Democratic pushback -- The inclusion of a West Virginia gas pipeline championed by Sen. Joe Manchin (D-W.Va.) in the debt ceiling deal is causing consternation among Democrats. Getting the pipeline into the must-pass legislation is a huge victory for Manchin, who has been pushing for congressional approval of the project to fulfill a deal he made with Democratic leaders. But it’s also both a surprise — and hugely controversial with Democrats and environmental groups who say it will lock in lock in more years of fossil-fuel dependency for the country. They say the project is circumventing normal procedures for such works. “Singling out the Mountain Valley Pipeline for approval in a vote about our nation’s credit limit is an egregious act,” Peter Anderson, Virginia policy director with Appalachian Voices, said in a statement Sunday. “By attempting to suspend the rules for a pipeline company that has repeatedly polluted communities’ water and flouted the conditions in its permits, the president and Congress would deny basic legal protections, procedural fairness, and environmental justice to communities along the pipeline’s path,” he added. The debt deal could receive a vote in the House as soon as Wednesday as lawmakers work to pass the package through both chambers by a June 5 deadline. Treasury Department Secretary Janet Yellen has warned the government will not be able to pay its bills if legislation is not enacted by that date. The debt ceiling bill is coupled with spending restrictions won by House Republicans. Both sides have misgivings about the legislation, with conservatives arguing that spending cuts should be greater and progressives saying the administration gave up too much. As a result, votes in both chambers are likely to be close, with opposition coming from members of each party. Virginia lawmakers, who would see the Mountain Valley Pipeline run through their state, were among the most vocal in opposing its inclusion in the bill. The 303-mile vessel would bring gas from West Virginia to southern Virginia. Sen. Tim Kaine (D-Va.) said he will offer an amendment to strip the pipeline from the deal, as did several House Democrats representing Virginia: Reps. Don Beyer, Gerry Connolly, Abigail Spanberger, Bobby Scott and Jennifer Wexton. “Senator Kaine is extremely disappointed by the provision of the bill to greenlight the controversial Mountain Valley Pipeline in Virginia, bypassing the normal judicial and administrative review process every other energy project has to go through,” a Kaine spokesperson told The Hill in an email. “This provision is completely unrelated to the debt ceiling matter. He plans to file an amendment to remove this harmful Mountain Valley Pipeline provision,” the spokesperson said. It’s unclear whether Kaine or other opponents of the pipeline’s inclusion in the legislation will oppose the package if their amendment fails, however.

Pipeline provision in debt ceiling agreement likely to withstand legal challenges - Environmental advocates who have fought the Mountain Valley Pipeline in court for years say a deal between the White House and Congress to force its completion is corrupt and corrosive to democracy. But despite fears in some quarters that the language of the deal built into debt ceiling negotiations will upend the system of checks and balances built in the government, experts say it is likely to withstand any legal challenge.Building the 303-mile pipeline across national forest and hundreds of streams in Virginia and West Virginia requires permits from federal and state agencies overseeing compliance with environmental laws. The U.S. Court of Appeals for the 4th Circuit, which has jurisdiction in those states, has repeatedly blocked those permits as failing to account forenvironmental damage, particularly construction pollution of local waterways that has led to fines against the company behind the project. Initially planned for completion in 2020, the pipeline project has dragged on for years, and its cost estimate has doubled to $6.6 billion.The language in the debt ceiling deal — which the House approved Wednesday night — directs the federal government to approve any outstanding permits for the pipeline and blocks courts from reviewing them or any other agency action in approval of the project. Any challenge to the deal itself can be heard only by the U.S. Court of Appeals for the District of Colombia. “Can they do this? Almost certainly, yes,” said Jay Austin of the nonprofit Environmental Law Institute. Lawmakers have made similar moves in the past, Austin said, that have been controversial but generally have been held to be constitutional.“All the Constitution says is that there shall be a Supreme Court,” Austin said. “Congress establishes the jurisdiction of the lower courts.”Environmental litigators said they could not think of another bill that exempted a project from all legal challenges after it had repeatedly failed to meet environmental standards.“I think there is a separation-of-powers problem when Congress steps in to overturn judicial process at a case-specific level like this,” said Earthjustice President Abigail Dillen, whose group opposes the pipeline. “That is not how the three branches are intended to work with each other.”

Lawmakers unsure about path forward on permitting - Democrats came up short on permitting in the debt ceiling deal, and key lawmakers are casting doubt on whether there’s still a viable path this year to bolstering the nation’s electric grid. The compromise between President Joe Biden and House Speaker Kevin McCarthy (R-Calif.) includes faster reviews under the National Environmental Policy Act but leaves out any mandates on transmission. It’s a clear victory for the GOP. “As it sits right now, I feel like we just lost two years,” said Rep. Sen Casten (D-Ill.), co-chair of the House Sustainable Energy and Environment Coalition task force. “Look, I think I think Biden got the vast better end of this deal on all the fiscal issues, social safety net issues; I give him credit for all that,” Casten said. “They totally messed up the transmission piece, and they didn’t deal with us on the level about what they had. And so we didn’t know how bad they botched it until after we saw the text.” Negotiators last week appeared to be seriously considering making transmission a central piece of the deal, using yet-to-be-introduced legislation from Sen. John Hickenlooper (D-Colo.) and Rep. Scott Peters (D-Calif.). And before the “Fiscal Responsibility Act” was released Sunday, people familiar with the discussions said it would include a grid component. It turned out to be only a requirement for a study from the Federal Energy Regulatory Commission due in two and a half years. Casten offered amendments to change the bill, but the House Rules Committee did not make any of them in order for floor debate. He said he would rather have the Department of Energy conduct the study, saying DOE is “much less subject to utility interference” and has already done some studies on the matter. “There is absolutely no good reason why anybody needs to spend two years studying a problem that has been asked and answered 15 times,” Casten said. “The only reason to do that is if you’re trying to slow the deployment of transmission when everybody … who cares about this stuff knows that you’ve got to de-bottleneck transmission.”

Environmental groups slam 'poison pills' in debt ceiling bill -- As President Joe Biden and House Speaker Kevin McCarthy try to sell Congress on their proposal to raise the debt ceiling, environmental groups are crying out against provisions that would push forward a controversial pipeline project and weaken a bedrock environmental law. The deal is a “disaster for people and the planet,” the nonprofit Friends of the Earth said in a statement. The organization’s director of government and political affairs, Ariel Moger, called it a “surrender to Big Oil and Republican hostage-takers.” The main purpose of the so-called Fiscal Responsibility Act of 2023 is to raise the debt ceiling, a congressionally mandated limit on the amount of money the Treasury can borrow to fund its operations and pay its creditors. The U.S. government has never before failed to make a debt payment on time, and economists say a default — which is projected to occur on June 5 if Congress doesn’t raise the ceiling — would cause widespread financial chaos and spark a global economic recession. Congress has voted to raise the debt ceiling 78 times since 1960. Doing so allows the U.S. to continue paying for programs that Congress has already approved, but debt ceiling negotiations have gotten more contentious in recent years as congressional budget hawks try to win spending cuts in exchange for their support. This year’s bill includes some spending cuts to appease congressional Republicans, but it also contains environmental “poison pills” that opponents say have nothing to do with the national debt.One such provision would require the Army Corps of Engineers to approve all remaining permits for the Mountain Valley Pipeline, a 303-mile project to carry natural gas from West Virginia to Virginia. The bill would also protect the permits from judicial review.Although the conservative Democratic Senator Joe Manchin has argued that the pipeline is needed for “energy and national security,” experts say this need has never been demonstrated. Instead, a coalition of environmental advocates warn that pushing the project forward could cause some 89 million metric tons of greenhouse gas emissions annually — about as much as 19 million passenger cars — while also harming low-income communities and communities of color in its path. The pipeline has already faced numerous permitting roadblocks due to water quality violations. “This is a desperate company building a failing pipeline that has some sympathetic ears in Congress,” said Russell Chisholm, managing director of Protect Our Water, Heritage, Rights, a coalition of environmental groups in Appalachia. He said panic over the debt ceiling was a “completely manufactured crisis” that lawmakers were exploiting at the expense of frontline communities. “I really feel they’re trying to shift the blame for this looming deadline, this looming ‘catastrophe,’ over onto people who object to having their lives thrown away in the name of raising the debt ceiling,” Green groups are also concerned about changes to the National Environmental Policy Act, or NEPA, in the debt ceiling deal. Since 1970, NEPA, sometimes called the “Magna Carta” of U.S. environmental laws, has required federal agencies to conduct an environmental review before greenlighting major projects. The proposed changes would put time limits on that review process — a move that critics say could expedite fossil fuel infrastructure, although the White House has argued it could help move forwardclean energy proposals.

Biden’s climate gamble in the debt deal - President Joe Biden is in hot water with climate activists. Again.Environmental advocates are assailing what they call “poison pills” in the debt limit deal the White House made with congressional Republicans over the weekend. They’re outraged over what they call a “climate-killing” move to advance a contentious natural gas pipeline and provisions to speed up permitting for energy projects.Some climate activists are even vowing to blockade Democratic Senate Majority Leader Chuck Schumer’s home in Brooklyn on Tuesday over opposition to the climate provisions in the deal.The backlash from the left marks the latest skirmish between the Biden White House and climate hawks still fuming over the administration’s decision earlier this year to greenlight the massive Willow oil and gas drilling project on federal land in Alaska.The deal reached to raise the nation’s debt limit represents “a surrender by President Biden to Republican hostage-takers,” a coalition of environmental groups led by the Center for Biological Diversity wrote in a letter to lawmakers Tuesday. “It is an injustice and moral failure to have to choose between defaulting on our national debt or bankrupting the health of people and the planet.”A coalition of groups including the Center for Biological Diversity, Food & Water Watch, Friends of the Earth and others are urging Democrats to pass a clean debt ceiling bill free of “unnecessary poison pill riders” including the approval of the Mountain Valley pipeline and changes to the National Environmental Policy Act’s permitting process.Others pointed to the GOP. “It is shameful that House Republicans are holding the entire economy hostage to advance an agenda that sacrifices the wellbeing of millions of Americans for the benefit of billionaires and oil and gas companies,” Earthjustice President Abigail Dillen said in a statement. “Republicans raised or suspended the debt limit under former President Trump three times without any strings attached, and this should have once again been a clean debt limit raise.”But while some green groups are painting the deal as a big loss for Biden, the White House and other Democrats view the deal as a necessary political move to keep the nation from defaulting on its debt and to safeguard the massive renewable energy investments in last year’s climate law. Lawmakers are racing to pass the legislation this week as the default deadline looms.

Biden, McCarthy Agree on $886 Billion Military Budget - The debt ceiling agreement reached between the White House and House Republicans that was announced Sunday caps military spending at $886 billion for 2024, matching President Biden’s requested budget. Republicans negotiating the debt ceiling deal only sought non-military spending cuts. The $886 billion cap for military spending represents about a 3.3% increase from 2023.The White House and House Speaker Kevin McCarthy (R-CA) still need to get the debt ceiling agreement passed through Congress. Many hawkish Republicans will likely oppose the deal as they previously blasted Biden’s massive $886 billion request as “inadequate.”Sen. Lindsey Graham (R-SC) slammed the debt limit deal in an appearance on Fox News on Sunday. “The Biden defense budget was a joke before, and if we adopt it as Republicans, we will be doing a big disservice to the party of Ronald Reagan,” Graham said.“The biggest winner of the Biden defense budget is China because they’ll have a bigger navy,” Graham added.Hawks in Congress have gotten their way over the past two years as they approved significantly more military spending than what President Biden requested for 2022 and 2023. For 2023, President Biden asked for $813 billion in military spending, but Congress added $45 billion, bringing the finalized National Defense Authorization Act to $858 billion.A similar increase for 2024 could bring the NDAA close to $1 trillion. The US also authorizes other national security spending that is not included in the NDAA. According to analyst Winslow Wheeler, factoring in other types of expenditures on the national security state, including interest on debt and the Veteran Affairs budget, would bring the total defense budget for 2024 to around $1.5 trillion.

Biden-McCarthy debt ceiling deal attacks social programs to pay for war -- The debt ceiling agreement announced Saturday night by President Joe Biden and Republican House Speaker Kevin McCarthy is the outcome of a bipartisan conspiracy, using a manufactured crisis to intensify the assault on social programs and make the working class pay for the war against Russia and war preparations against China. After nearly three weeks of closed-door talks, Biden and McCarthy hailed an “agreement in principle” that is supposedly the necessary response to the danger of a “catastrophic” default on the national debt that would otherwise take place on June 5. The entire crisis over an imminent debt default has a contrived and stage-managed character. This is underscored by the fact that over the past week, the US stock market has registered gains, with the Dow, the Nasdaq and the S&P 500 rising sharply on Friday, the price of gold falling, and the US dollar index registering its third straight weekly advance. The terms of the debt limit deal as outlined by the media completely confirm the analysis presented by the World Socialist Web Site. We wrote on May 16 that “the two big business parties are conspiring to impose a multi-year cap on non-military discretionary spending that will deprive millions of people of health coverage, food assistance, rent support and other necessities.” The agreement freezes discretionary spending for fiscal year 2024 at current 2023 levels and caps any increase for FY 2025 at 1 percent. It exempts spending for the military and veterans’ benefits. It affirms the 3 percent increase in arms spending proposed by Biden in March as part of a record military budget that will likely surpass $1 trillion, when tens of billions in outlays for the proxy war against Russia in Ukraine are included. On May 21, speaking after the G7 summit in Hiroshima at which he announced another $375 million in military aid to Kiev, Biden said his budget proposals in the debt talks would cut non-military discretionary spending by $1 trillion over the next decade. Since the military is excluded from the spending caps, the impact on social programs will be heightened. Adjusted for inflation, the deal will mean a de facto cut to pre-2023 levels, one of the key demands of the Republicans. The agreement claws back billions of dollars in unspent COVID relief funds, terminating aid to desperately underfunded education, health care, public transit, nutrition, housing and other social programs. It shortens the review process for new drilling and energy projects, a boon to the fossil fuel industry. It imposes new work requirements on Supplemental Nutrition Assistance Program (food stamp) recipients as well as those receiving Temporary Assistance to Needy Families (welfare) benefits. These cuts are deliberately cruel punishments targeting the poor and unemployed. They are nothing new for Biden, who voted for work requirements in the 1996 Clinton administration bill that abolished welfare as a federal entitlement program.

Warren: Parts of the debt ceiling deal are ‘really bad’ - Sen. Elizabeth Warren (D-Mass.) on Tuesday decried multiple items included in the debt ceiling agreement struck by the White House and House Republicans as “really bad,” but said she has not decided how she’ll vote on the measure. Warren told reporters in the Capitol that she has “real concerns” about portions of the bill related to work requirements, student debt repayments, climate change and taxes on the wealthy. “Those things are bad. Really bad,” she said. However, the Massachusetts progressive added that she has not decided how she’ll vote, saying she is continuing to review the proposal. Warren joins progressives in the House who have also expressed deep reservations about aspects of the bill, including work requirements and spending caps. She also vented that President Biden “should never have been put in this position” and said Democrats should have hiked the debt ceiling in November when they were still in control of the House. “I’m weighing it against the fact that the Republicans are hostage takers and they’re willing to blow up the economy and destroy our good name across the world, and the Democrats are called on once again to be the grown-ups in the room,” Warren said.

Another target of GOP spending cuts: renewables for farmers -Environmental groups have been clamoring for Congress to make this year’s farm bill the next big climate law. With more funding, climate advocates say, farmers could cut greenhouse gas emissions by storing carbon in soil, curbing nitrogen fertilizer use, and planting trees. But the farm bill — and the movement to make it climate-friendly — isn’t just about farming. It also pumps tens of millions of dollars each year into clean energy projects: solar panels on a poultry and cattle farm in Georgia; an energy-efficient refrigerator at a grocery store in South Dakota; a wind turbine in Minnesota. The source of those funds, the farm bill’s Rural Energy for America Program, “helps to reduce input costs for farmers, to cut their energy costs, and to lower their carbon footprints,” said Andy Olsen, senior policy advocate at the Environmental Law and Policy Center. That program, which is voluntary for farmers and rural small business owners, was supposed to get an additional $2 billion through the Inflation Reduction Act. Now, it’s being targeted by House Republicans looking for spending cuts. They’ve proposed clawing back half a billion dollars meant for the program — along with $3 billion for renewable energy projects run by rural electric cooperatives, and eliminating funding for the Department of Agriculture’s climate research. The cuts, proposed separately from the deal that House Republicans and the White Housereached on the debt limit, are sure to encounter resistance if they make it through the House of Representatives and get sent to the Democrat-led Senate. But the development signals that turning this year’s farm bill into a historic climate law might be harder than advocates have hoped. And it has put a bullseye on a rural energy program that had, until recently, a history of bipartisan support.

Debt ceiling bill clears key procedural hurdle to advance to House floor - The House Rules Committee advanced the debt ceiling bill to the floor Tuesday night, clearing a key hurdle as the legislation faces opposition from both Democrats and Republicans. The panel voted 7-6 to adopt the rule — which governs debate on the legislation — with Republican Reps. Chip Roy (Texas) and Ralph Norman (S.C.) joining all Democrats in opposing the rule. Adoption of the rule allows the debt limit bill to advance to the floor for debate and a vote on Wednesday, just five days before the June 5 deadline. Treasury Secretary Janet Yellen has said the U.S. could default on its debts by that day if the borrowing limit is not raised.

As Debt Deal Inches Towards Senate, McConnell Prepares For Battle With Conservative Holdouts - As the deal to raise the debt ceiling works its way through the House, Senate Republican leader Mitch McConnell (KY) is preparing for battle with Senate conservatives who are calling for amendments to the bill and threatening to delay the legislation until changes are made.As The Hill reports, the bill is likely to get over 40 Senate Democratic votes, meaning it will likely need at least 10-20 "yes" votes from Senate Republicans in order for it to move to President Biden's desk before the June 5 "X-date" deadline set by Treasury Secretary Janet Yellen for the US to run out of funds.On Sunday, McConnell came out in favor of the deal negotiated between House Speaker Kevin McCarthy (R-CA) and President Biden's team, however he faces strong opposition from actual conservatives. Chief among them, Sen. Mike Lee (R-UT), who has threatened to use "every procedural tool at my disposal" to slow down the bill. Sen. Rand Paul (R-KY) has similarly thrown a wrench in the gears - demanding a vote on his "conservative alternative" that would cut total federal spending by $545 billion over two years."It’s time to go back to the drawing board or, even better, go back to what the House already passed," said Lee on Tuesday - referring to the Limit, Save, Grow Act, which would cut $4.8 trillion from the future deficit. According to Lee, the current bill "simply does not do what its proponents claim it does — not even close."Last week, Lee said that if the bill doesn't include substantial budgetary and spending reforms, it "will not face smooth sailing in the Senate."McConnell has pledged the nation will not default on its debts but he also has a responsibility as leader to help Republican colleagues who want to amend the legislation, which could delay it past the June 5 “X-date.” “The Senate must act swiftly and pass this agreement without unnecessary delay,” he said in a statement Sunday. -The HillRand Paul, meanwhile, says he won't vote for any bill to raise the debt ceiling that doesn't balance the federal budget in five years - which would require over $500 billion in future cuts.

Parties lining up votes for debt deal amid backlash - Republican and Democratic leaders are looking to secure enough support for the debt ceiling and energy permitting compromise before a planned vote Wednesday. This weekend, House Speaker Kevin McCarthy (R-Calif.) and President Joe Biden announced that — after weeks of haggling — they had reached a deal to raise the debt ceiling, cut spending and address long-standing energy permitting worries. But some vocal conservatives are accusing McCarthy of failing to extract enough concessions from Democrats, and progressives think the president gave away too much. “Mandating approval of the Mountain Valley pipeline is a disturbing and profoundly disappointing addition to this bill,” said House Natural Resources ranking member Raúl Grijalva (D-Ariz.), who helped lead the opposition to previous attempts at energy permitting. “Condemning Appalachian communities to generations of pollution and pain is a legacy that no one should be forced to vote for,” he said. Indeed, the “Fiscal Responsibility Act” would ensure approval of the Mountain Valley natural gas pipeline from West Virginia into Virginia. It also includes new timelines for environmental reviews and would expand a program to expedite infrastructure permitting. The bill would raise the debt ceiling through the 2024 presidential elections, limit spending increases in the coming fiscal years and incentivize the passage of appropriations bills. Rep. Chip Roy (R-Texas) is looking to tank the deal and suggested on Twitter he would use his perch on the House Rules Committee to get his way. He called the accord a “turd-sandwich.” Still, Biden, McCarthy and other congressional leaders believe there will be enough support to secure passage in the coming days, after critics have exhausted procedural hurdles. “The agreement also represents a compromise, which means no one got everything they want. But that’s the responsibility of governing,” said Biden during remarks Sunday. McCarthy, speaking with reporters at the Capitol on Sunday, said, “I think at the end of the day people can work together to be able to pass this in the House and in the Senate together, and send it to the president.”

House Approves Debt-Limit Bill Rule Ahead Of Evening Vote As McCarthy Needs Democrat Votes - Shortly after 4pm ET, the debt-limit deal cleared a major hurdle in the House despite growing opposition, setting up the legislation for a vote around 8:15pm on Wednesday night, a vote which despite vocal showboating opposition from various republicans appears destined to pass. While the House voted 241-187 to take a procedural step needed to consider the measure, McCarthy needed votes from Democrats to offset 29 Republican “no” votes, underscoring the divide within his own party over the legislation as such votes setting the rules for debate are nearly always decided along party lines. The final vote tally suggests that the Speaker's position is becoming increasingly vulnerable... if only there was someone willing to submit a motion to vacate. Here are the 29 Republicans that voted no on the rule for the debt ceiling: “I think things are going as planned,” Biden told reporters at the White House, before he was due to leave for Colorado. “God willing, by the time I land, Congress will have acted, the House will have acted, and we’ll be one step closer.” House Majority Whip Tom Emmer, a Minnesota Republican, said early Wednesday that he’s sure the votes are in hand. “It’s going to pass,” he said even though he will need Democrat vote for the final passage. If it passes, the bill will next go to the Senate, where objections from conservatives could force days of debate. But John Thune, the Senate’s No. 2 Republican, said Wednesday that there could be a deal to pass the bill by Friday night, days ahead of the June 5 default deadline.

Heritage Action opposes debt deal bill, makes it a ‘key vote’ - Heritage Action, the advocacy arm of the conservative Heritage Foundation think tank, is taking an official position against the debt limit compromise bill. The group will send a “key vote” notice against the bill Wednesday, The Hill has learned. Members’ votes will count on Heritage Action’s legislative scorecard, a metric of conservatism that holds weight with many Republican members of Congress, campaign donors and voters. Heritage Action’s opposition marks a blow to House GOP leadership’s efforts to whip Republican support in favor of the bill, dubbed the Fiscal Responsibility Act, as members ranging from hard-line conservative members of the House Freedom Caucus and beyond announce they will not vote in favor of the bill. A floor vote on the legislation is expected Wednesday. A draft notice for the key vote alert says that the bill “falls short of the demands that have been outlined by Heritage Action since January: cap and cut overall spending to FY 22 levels, include pro-growth policies that fully offset a transparent dollar amount increase in the debt ceiling, and adequately address the trajectory of federal spending.” “We commend the victories achieved through honest negotiations by Speaker [Kevin] McCarthy [R-Calif.] with the White House, such as environmental permitting reform that will help unlock pent up construction demand and commonsense work requirements for the SNAP and TANF programs,” the notice said, referring to the Supplemental Nutrition Assistance Program and Temporary Assistance for Needy Families. “We also acknowledge the breaking of a long-held Democrat demand for dollar-for-dollar parity with defense and non-defense spending. Unfortunately, these victories are smaller and less impactful than all that is needed to grow the economy and right-size the fiscal house of this nation.” “This deal does not meet the moment, and it does not address the root problems that have led to nearly $32 trillion in national debt,” the notice said. McCarthy has said that he expects more than half of the House GOP conference to support the bill. Any less than that would put him in a politically perilous position. The organization’s position on key legislation has proved influential with Republican members of Congress in the past. Last year, Heritage Action’s opposition to a $40 billion aid package for Ukraine helped push Republican opposition to 57 votes against the bill. Heritage Action joins FreedomWorks, another conservative advocacy group, in calling a “key vote” against the bill.

Stockman Slams Speaker McCarthy's 'Rotten Deal' - If there was ever any doubt, now we know: Speaker Kevin McCarthy has straw for brains and a Twizzlers stick for a backbone. He was within perhaps five days of breaking the iron grip of America’s fiscal doomsday machine, yet inexplicably he turned tail and threw in the towel for a mess of fiscal pottage. We are referring, of course, to the impending moment when the US Treasury would have been forced to forgo scheduled vendor or beneficiary distributions in order to preserve incoming cash for interest payments and other priorities. That act of spending deferrals and prioritization would have obliterated the debt “default” canard once and for all, paving the way for a nascent fiscal opposition to regain control of the nation’s wretched public finances. And there should be no doubt that we were damn close to that crystalizing moment. After all, Grandma Yellen herself forewarned just last week on Meet The Press that absent a debt ceiling increase, the Treasury Department would have to prioritize payments and leave some bills unpaid:“And my assumption is that if the debt ceiling isn’t raised, there will be hard choices to make about what bills go unpaid,” Yellen said on NBC’s “Meet the Press…….“We have to pay interest and principle on outstanding debt. We also have obligations to seniors who count on Social Security, our military that expects pay, contractors who’ve provided services to the federal government, and some bills have to go unpaid….” And, of course, that prioritization and deferral could have been easily done. Federal receipts are now running about $450 billion per month, meaning that after paying $61 billion of interest, $128 billion for Social Security, $26 billion for Veterans and $47 billion for military pay and O&M there would still be $188 billion left to cover at least 50% of everything else.That is to say, no sweat with respect to servicing the public debt, and a lot of sweat among the constituencies that would have had payments delayed or reduced.So, yes, the GOP has truly earned the Stupid Party sobriquet. No ifs, ands or buts about it.

McCarthy tries to hold off last-minute rebellion over work requirements in debt deal - House Republican leaders are trying to stave off another wave of GOP defections just hours before a final vote on a deal to avert a national default — this time over the work requirements for aid programs that Republican leaders have publicly touted as a win for their party. The latest rebellion was spurred by a Congressional Budget Office report released Tuesday night that estimates spending on the food aid program that Republicans attempted to cut during the debt ceiling negotiations would actually increase under the agreement reached by Speaker Kevin McCarthy and President Joe Biden. That has set off a firestorm among conservative lawmakers — threatening a larger revolt within their fractious caucus hours before a final vote on the legislation to raise the debt ceiling and avoid a default. With the help of Democratic votes, McCarthy still appeared poised to push the bill through the House later Wednesday — leaving an increasingly angry right flank of his caucus steaming over the GOP concessions. In addition to expanding the age group of people on food aid subject to work requirements, the deal to raise the debt ceiling creates new exemptions from work requirements for veterans, homeless people and those aging out of the foster care system — something the White House pushed for in the negotiations. CBO analysts found that those series of work requirement changes will collectively increase spending on the Supplemental Nutrition Assistance Program, the nation’s largest anti-hunger program for low-income people, by $2.1 billion. “This is going to hurt with fiscal conservatives,” one House Republican member who planned to vote “no” on the bill texted from the closed-door House GOP caucus meeting just after the CBO report hit Tuesday night. As word spread about the CBO report’s findings, texts, emails and calls from already restless rank-and-file members surged. Senior Republicans directed anxious members to Rep. Dusty Johnson (R-S.D.), who has helped push the work requirements policy during the talks. “Dusty has the answers,” was one reply from a senior Republican lawmaker. While House Republican leaders and McCarthy allies sought to immediately tamp down the furor, reaching out to members late into the night to argue the CBO projections were wrong, their arguments failed to quell some far-right lawmakers’ concerns. One of the debt deal’s most visible critics, Rep. Chip Roy (R-Texas), blasted the bill’s “watered down work requirements that save $0” on Twitter Wednesday morning. Rep. Nancy Mace (R-S.C.) meanwhile issued a series of scathing tweets about how she “won’t be voting to expand government welfare today.”

House approves Biden-McCarthy debt ceiling, spending cap bill : NPR - House lawmakers have passed a piece of compromise legislation brokered between President Biden and House Speaker Kevin McCarthy to avoid an unprecedented debt default with just days to spare.The Fiscal Responsibility Act of 2023 overwhelmingly cleared the chamber Wednesday evening with a 314-117 vote.The high stakes negotiations and subsequent passage of the bill were a critical test for McCarthy as speaker. With his narrow majority, McCarthy carried out a balancing act — crafting a deal that satisfied the demands of the majority of his conference without alienating some of the Democratic lawmakers he needed to support the bill in order for it to pass.There had been a question as to whether Democrats would supply just enough votes for the bill to pass to avoid a default or if they would come out in force in support of Biden. Ultimately, Democrats played a larger role than Republicans in its passage: 165 Democrats joined 149 Republicans to approve the bill."Tonight, the House took a critical step forward to prevent a first-ever default and protect our country's hard-earned and historic economic recovery," Biden said in a statement. "Neither side got everything it wanted. That's the responsibility of governing. I want to thank Speaker McCarthy and his team for negotiating in good faith, as well as Leader Jeffries for his leadership."Congressional leaders have been saying for weeks that any bill to prevent a default must have bipartisan support."Was [the bill] everything I wanted? No. But sitting with one House, with a Democratic Senate and a Democratic president who didn't want to meet with us, I think we did pretty dang good for the American public," McCarthy said during a press conference following the vote, referencing his frequent complaint that Biden wouldn't meet with him again after a February meeting until House Republicans passed a debt ceiling bill of their ownThe vote came just days before the U.S. could run out of money to pay its bills, according to Treasury Secretary Janet Yellen.The bill now heads to the Democratic-controlled Senate, where it will need 60 votes before it would go to Biden's desk. Senate Majority Leader Chuck Schumer has already said lawmakers are prepared to stay the weekend to pass the bill, if needed.

House passes bipartisan debt deal, sending it to Senate - The House passed legislation Wednesday to raise the nation’s borrowing limit through 2024, sending it to the Senate with less than six days until a June 5 default deadline. The vote united a swath of Republicans and Democrats, and was opposed by a swath of conservative and progressive lawmakers, with a few of the former floating an attempt to strip Speaker Kevin McCarthy of his gavel over the bipartisan debt agreement he negotiated. The hurdles aren’t over yet. The bill still needs to clear the Senate by Monday’s deadline. Senate Majority Leader Chuck Schumer can start setting up votes on the debt bill as soon as Thursday, with the first vote on Saturday absent agreement from all 100 senators. Several senators want votes on amendments as a condition to speed up the process, and Schumer and Senate Minority Leader Mitch McConnell hope to finish work on the bill before the weekend by crafting a deal on amendments and sending it to President Joe Biden’s desk days before the Monday deadline. But passing the bill marks the House’s biggest bipartisan victory since Republicans took over the chamber this year. Until now, McCarthy’s repeated wrangling of members has mostly been on a series of messaging bills with no Democratic support and no chance at becoming law. And he faced plenty of questions on whether he could get enough Republican support for the debt plan. “Don’t miss out. Don’t sit back and think, ‘I wanted something so much more,’” McCarthy said, describing his pitch to members. “Yeah, there’s a lot of things I want, too, but this is one that moves us in the right direction.” In the end, McCarthy lost 71 House Republicans, while 149 backed it. But the bill easily passed with support from 165 Democrats, who were torn between voting for a bill that includes some policies they oppose or risking a default. “I have mixed emotions because, on one hand, I think that what our colleagues are doing is punitive and just bad for a country. But I also recognize the importance of protecting the full faith and credit of my country,” said Rep. Troy Carter (D-La.). But there was still plenty of internal GOP drama, despite the pre-baked outcome. In addition to raising the debt ceiling until Jan. 1, 2025, the debt bill sets top-line spending levels for two years. It also, among other provisions, automatically cuts government funding by one percent absent spending bills passed by Jan. 1. Republicans have also touted new work requirements and other restrictions for certain social safety net programs. Rep. Elise Stefanik (R-N.Y.) and other senior Republicans also tried to prevent a potential last-minute revolt after a CBO score projected the work requirement changes in the bill would actually increase spending for the key food aid program, due to exemptions for veterans, homeless people and young adults recently aged out of foster care, according to CBO. The conservative House Freedom Caucus also formally came out against the legislation just hours before the vote, making a doomed pitch for their colleagues to sink the bill and “force Democrats back to the negotiating table.” 📣 We have a new app. Download the upgraded version for iOS or Android. “The Biden-McCarthy deal … threatens to shatter Republican unity,” they wrote. McCarthy made a swaggering pitch to his members during a closed-door hours-long conference meeting Tuesday night, which several GOP lawmakers compared to a pep rally meant to drive up support for the agreement. But that did little to appease his most ardent holdouts. Rep. Lauren Boebert (R-Colo.), who ultimately narrowly missed Wednesday night’s vote, said afterward that “the cheering doesn’t move me.” Rep. Chip Roy (R-Texas) also railed against the deal Wednesday, saying: “My beef is that you cut a deal that shouldn’t have been cut.”

Here Are the Progressives Who Voted Against the GOP's Debt Ceiling 'Extortion Scheme' - Nearly 40 members of the Congressional Progressive Caucus broke with the majority of their House Democratic colleagues late Wednesday to vote against the debt ceiling agreement negotiated by President Joe Biden and Republican leaders. The legislation, which would lift the debt ceiling until January 2025 and enact painful caps on non-military federal spending, passed the GOP-controlled House by a vote of 314 to 117, with 165 Democrats joining 149 Republicans in supporting the measure. The bill's passage came after weeks of talks between the White House—which repeatedly said it would not negotiate over the debt ceiling—and Republicans who manufactured the standoff to pursue austerity for low-income Americans, gifts for rich tax cheats, and handouts to the fossil fuel industry. While Republicans didn't get anything close to what they called for in legislation they passed in late April, progressives who voted against the bill on Wednesday said the final agreement will harm vulnerable peopleand the planet by imposing new work requirements on aid recipients and approving the Mountain Valley Pipeline—a top priority of fossil fuel industry ally Sen. Joe Manchin (D-W.Va.). Progressives also raised alarm over a provision that would codify the end of the student loan payment pause, setting the stage for a disaster if the U.S. Supreme Court strikes down the Biden administration's debt cancellation plan."I cannot vote for a bill that guts key environmental protections and greenlights dirty fossil fuel projects for corporate polluters who are poisoning our communities, pushes our residents deeper into poverty by implementing cruel and ineffective work requirements for our low-income neighbors who rely on SNAP and TANF for food and housing, terminates the student loan payment pause, and slashes IRS funding to make it easier for the rich to cheat on their taxes," Rep. Rashida Tlaib(D-Mich.) said in a statement."We cannot continue to capitulate to a far-right Republican Party and their extreme demands while they inflict policy violence on working-class people, gut our bedrock environmental protections, and decimate our planet," Tlaib added, referring to the bill's work requirements for food aid.In total, 38 members of the Congressional Progressive Caucus (CPC) voted against the legislation: Reps. Tlaib, Pramila Jayapal (D-Wash.), Katie Porter (D-Calif.), Cori Bush (D-Mo.), Alexandria Ocasio-Cortez (D-N.Y.), Mark Pocan (D-Wis.), Summer Lee (D-Pa.), Greg Casar (D-Texas), Rosa DeLauro (D-Conn.), Jim McGovern (D-Mass.), Barbara Lee (D-Calif.), Dan Goldman (D-N.Y.), Jimmy Gomez (D-Calif.), Nanette Barragán (D-Calif.), Jamaal Bowman (D-N.Y.), Jan Schakowsky (D-Ill.), Ro Khanna, (D-Calif.), Chuy García (D-(Ill.), Delia Ramirez (D-Ill.), Frederica Wilson (D-Fla.), Raúl Grijalva (D-Ariz.), Jared Huffman (D-Calif.), Sydney Kamlager-Dove (D-Calif.), Gwen Moore (D-Wis.), Grace Meng (D-N.Y.), Ayanna Pressley (D-Mass.), Jerry Nadler (D-N.Y.), Melanie Stansbury (D-N.M.), Val Hoyle (D-Ore.), Juan Vargas (D-Calif.), Nikema Williams (D-Ga.), Sylvia Garcia (D-Texas), Adriano Espaillat (D-N.Y.), Mark DeSaulnier (D-Calif.), Jasmine Crockett (D-Texas), Yvette Clarke (D-N.Y.), Judy Chu (D-Calif.), and Suzanne Bonamici (D-Ore.). But the CPC members who joined Republicans in voting yes on the bill, including prominent progressive Rep. Ilhan Omar (D-Minn.), outnumbered those who opposed it.

How a divided House GOP conquered the debt ceiling -In this episode of Deep Dive, Playbook co-author Rachael Bade joins House Majority Whip Tom Emmer (R-Minn.) and Chief Deputy Whip Guy Reschenthaler (R-Pa.) just hours before final passage of the debt ceiling bill they shepherded through the House. This is the behind the scenes story from inside the Republican whip’s office of how Kevin McCarthy’s leadership team convinced House Republicans to raise the debt ceiling for two years and embrace his agreement with President Joe Biden, which many on the right decried as a betrayal of the base. It’s a story of how Emmer and Reschenthaler pulled together a divided and fractious conference, dodging a ballooning effort to oust McCarthy from the gavel, and ultimately putting the ball back in the Democrats’ court. Listen to this episode of Playbook Deep Dive on Apple, Spotify, Google or Audible.

‘The weirdest legislation that anybody has ever been asked to vote on’ --Elizabeth Warren doesn’t like much at all about the deal to raise the debt ceiling. The only reason she might vote for it is hardly an endorsement: Default would be worse.“We have to weigh the consequences of default,” the progressive Massachusetts senator said in an interview, “against the pain that Republicans are trying to impose on hungry Americans, students, our climate and the Republicans’ constant enthusiasm for protecting billionaire tax cheats.”Warren’s ambivalence about a deal to raise the debt ceiling into early 2025, which Democrats never even wanted to negotiate, is coursing through the party’s left flank. Progressives are facing a no-win choice of voting against raising the debt ceiling or voting for some spending constraints and avoiding default. Even as they complain, many say that President Joe Biden got the best deal he could.And Warren’s not the only one weighing whether the deal is better than the alternative. Even some liberals who are planning to vote against the bill acknowledge it’s better than default. Typically, it’s just Republicans who are hard to woo on lifting the debt ceiling — but this time Democrats are also agonizing over what to do.Still, it’s a more positive sentiment than Biden and Democratic leaders faced two weeks ago, when Warren and dozens of other progressives were calling for the president to invoke the 14th Amendment rather than accede to Speaker Kevin McCarthy’s demands. The speaker got modest budget caps and new benefit restrictions, but Democrats likely would have had to fight those battles in the fall anyway, when Congress negotiates its annual spending bill.“This is the weirdest legislation that anybody has ever been asked to vote on since I got here,” said Rep. Jamie Raskin (D-Md.). “Nobody seems to support all of it. Everyone has problems with parts of it. But the macro alternative is absolutely indigestible.”

Defense spending levels threaten to delay Senate plan to fast-track debt ceiling bill — Demands by Republican senators for more defense funding threatened to delay Majority Leader Chuck Schumer's plan Thursday to fast-track a bill to raise the debt limit, as the U.S. barreled toward a June 5 deadline to avert a default. "Nobody wants to default ... But I'm tired of having default over my head as a reason to neuter the military at a time we need it the most," Sen. Lindsey Graham, R-S.C., said on the Senate floor, where he railed against a bill the House passed with broad bipartisan support late Wednesday. Under that bill, defense spending in 2024 would be capped at $886 billion, an annual increase of 3%. The following year, the budget would keep the increases to 1%, for a total of roughly $895 billion. Republican Sen. Susan Collins of Maine called that figure "woefully inadequate," and demanded that Schumer agree to pass an emergency defense supplemental funding bill to make up for it. "Bottom line, folks — we're not leaving until we get a path to fix this problem," said Graham. Schumer, for his part, has also pledged to keep the Senate in session. "Until we send a bill avoiding default to President Biden's desk, we will keep working until the job is done," he said on the Senate floor at the opening of Thursday's session. "Time is a luxury the Senate does not have if we want to prevent a default.The Fiscal Responsibility Act was passed in the Republican-majority House late Wednesday night by an overwhelming bipartisan majority, sending it to the Democratic-controlled Senate, which met Thursday and planned to take up the bill. In order to fast-track a bill through the chamber and vote on it before Monday, all 100 senators must agree to the plan, and give their "unanimous consent" for the bill to bypass the notoriously slow Senate procedures. Herein lies the challenge: In addition to Collins and Graham and GOP Sens. Tom Cotton of Arkansas and Roger Wicker of Mississippi, all of whom spoke in oppositions to the defense funding levels, there were at least three more senators, Utah Republican Mike Lee, Kentucky Republican Rand Paul and Virginia Democrat Tim Kaine, who also said they had serious objections to specific parts of the bill.On Thursday, Kaine introduced an amendment that would strip the House bill of a last-minute provision that all but guaranteed the approval of the Mountain Valley Pipeline, a controversial natural gas pipeline project through West Virginia and Virginia.Lee also proposed an amendment, to remove a line in the House bill that would allow the director of the Office of Management and Budget to unilaterally waive some spending restrictions on federal regulators if they determined that the spending was needed for "effective program delivery."In a typical Senate process, members would be expected to slow down Senate deliberations on the bill, propose their amendments to it, try to get those amendments passed by a vote and added to the bill, and if they succeed, send the amended bill back to the House for another vote.But with just days to go before the June 5 deadline set by Treasury Secretary Janet Yellen at which point the United States would likely be unable to meet its debt obligations, Schumer made it clear on Wednesday the bill could not move backward."We can't send anything back to the House," he told reporters in the Capitol. "That would risk default, plain and simple."

Kaine’s effort to remove Mountain Valley Pipeline provision from debt-limit deal fails - U.S. Sen. Tim Kaine, D-Virginia, on Thursday unsuccessfully tried to remove expedited approval of the controversial Mountain Valley Pipeline from the deal to address the nation’s debt ceiling, arguing that the provision amounted to Congress putting its “thumb on the scale” and calling it a “sweetheart deal for one company in one part of the U.S.” Kaine’s amendment to the Fiscal Responsibility Act was one of 11 considered by the Senate; it was voted down 30-69. All amendments failed before the Senate ultimately voted Thursday night to approve the bill 63-36. It now heads to President Joe Biden’s desk, since the House already passed the bill, 314-117, on Wednesday. Treasury Secretary Janet Yellen has said that Monday is when the U.S. government would no longer have the money to pay its obligations if Congress didn’t raise or suspend the nation’s debt limit by then.In a statement after his amendment failed to pass, Kaine said he was “deeply troubled by the unprecedented provision to cherry-pick one project and exempt it from the normal judicial and administrative review process that every other energy project has to go through.”“Especially when this project takes away Virginians’ land, my constituents deserve a fair process,” Kaine said, referring to the Mountain Valley Pipeline’s use of eminent domain to acquire property along the pipeline route. “I left it all out on the field in the fight for my amendment to remove this harmful provision.”The Fiscal Responsibility Act, which suspends the federal debt limit for nearly two years, includes a provision to speed up approval of the remaining permits necessary for the construction and operation of theMountain Valley Pipeline — a $6.6 billion, 42-inch pipeline that would run 303 miles from northwestern West Virginia to southern Virginia — and shield the project from further legal challenges.“Congress should not be putting our thumb on the scale and taking one project in the United States and saying it doesn’t have to comply with any permitting rules and it doesn’t go to judicial review,” Kaine said in a conference call with news media on Thursday before the Senate vote. “By doing so, we are hurting Virginians whose land is going to be taken for this pipeline.”Mountain Valley Pipeline spokesperson Natalie Cox on Thursday declined to comment specifically on Kaine’s amendment but sent a statement to Cardinal News about the debt-ceiling legislation generally, saying the project is “grateful for the full support of the White House, as well as the strong leadership of Democratic and Republican legislators for recognizing the Mountain Valley Pipeline (MVP) as a critical energy infrastructure project.”

Equitrans Midstream Surges 40% On Debt Ceiling Deal – Equitrans Midstream Corp. got some fuel from D.C. politicians, climbing 40% for the week as its Mountain Valley Pipeline project looks set for completion as part of the debt ceiling deal. Does this stock’s big advance have wider ramifications for other pipeline stocks? The Pennsylvania-based mid-cap has been attempting to get permits for the pipeline for several years. The pipeline would transport natural gas from northwestern West Virginia through southern Virginia. It’s faced environmental challenges standing in the way of the permitting process. As part of the debt ceiling deal, the pipeline’s permitting and completion may be expedited. Environmental groups are opposed to the project, but that hasn’t stopped investors from piling into the stock. The pipeline received the initial OK from federal regulators in 2017, with the expectation that the project would be up and running by the following year. However, legal challenges stymied completion. On May 30, Royal Bank of Canada upgraded the stock to sector outperform from sector perform, as you can see using MarketBeat’s Equitrans Midstream analyst ratings. Equitrans is part of the oil and gas pipeline and transportation sub-industry within the energy sector. Unlike the broader sector, Equitrans failed to have a record-breaking year in 2022. The stock declined while its industry peers notched big gains. Equitrans’ price declines were largely due to concerns about the company’s as-yet unsuccessful efforts to complete the Mountain Valley Pipeline. Equitrans operates an extensive pipeline network that spans major production areas in Pennsylvania, West Virginia, and Ohio. As a midstream company, Equitrans connects natural gas producers to end-users and markets, collecting natural gas from wells and transporting it to processing plants or transmission pipelines. Equitrans also operates storage facilities. Natural gas stored during periods of low demand can be delivered to end users during peak consumption periods.

Donations from Mountain Valley Pipeline developers, gas industry have flowed frequently into WV congress members' campaign coffers - West Virginia’s members of Congress have been among the Mountain Valley Pipeline’s most vocal supporters. Support has flowed both directions between the lawmakers and the pipeline.Manchin and Sen. Shelley Moore Capito, R-W.Va., have received campaign contributions totaling over $70,000 from political action committees for developers of the Mountain Valley Pipeline since the start of 2018. Manchin and Capito have hailed a provision to force completion of the pipeline in a debt limit deal.

House Republicans, not Joe Manchin, led charge to secure major gas pipeline in debt ceiling deal House Republicans were ultimately responsible for a provision fast-tracking a major natural gas pipeline in the debt ceiling package announced over the weekend, sources told Fox News Digital. After text of the legislation was published Sunday, Sen. Joe Manchin, D-W.Va., was immediately credited with ensuring the provision green-lighting all outstanding federal environmental permits for the Mountain Valley Pipeline project was included. In a statement, Manchin said he was "proud to have fought for this critical project and to have secured the bipartisan support necessary to get it across the finish line." However, sources close to the closed-door talks between the White House and House leaders said it was Republicans who led the charge to secure the provision's inclusion in the deal. The sources told Fox News Digital that Chief Deputy Whip Guy Reschenthaler, R-Pa., and Rep. Garret Graves, R-La., in particular pushed for the provision to be included after Rep. Carol Miller, R-W.Va., appealed to them. After the White House repeatedly communicated that it would oppose involving the pipeline in the deal, Republicans finally asked Manchin to lobby the White House to drop its opposition. "Manchin could have asked to put MVP in any of the Dem-only must-pass bills they passed in the last two years. He didn't because he couldn't get it done," one of the sources said. "Manchin played a key role without a doubt. But his role was simply getting the White House to agree to stop blocking it." However, Sam Runyon, a spokesperson for Manchin, pushed back on that characterization of negotiations and noted he had authored legislation to green-light the pipeline last year. "Everyone knows Joe Manchin was the one legislator to bring legislation to complete MVP to the national conversation last summer and secure a bipartisan vote on it," Runyon told Fox News Digital. "He never let up and he is thrilled the bipartisan support is so robust everyone is racing to take credit for this critical energy infrastructure project." Still, in a statement, Rep. Miller said it was Republicans who brought the pipeline provision to the table during debt ceiling negotiations.

Another permitting bill surfaces amid debt ceiling drama -New Mexico Democratic Sen. Martin Heinrich is expected to release two bills Thursday to enhance the nation’s grid, a bid to keep momentum going on permitting reform and to move beyond what was hammered out in the debt ceiling bill. The measures, which were shared with E&E News ahead of introduction, aim to tackle problems with transmission lines. One, the “Grid Resiliency Tax Credit Act,” would provide a 30 percent investment tax credit over the next decade to boost large-scale transmission projects. The other, the “Facilitating America’s Siting of Transmission and Electric Reliability (FASTER) Act,” would address siting and permitting delays to cut down on the time it takes to build high-voltage lines across huge swaths of land. “To meet our nation’s full potential as a global leader in the clean energy transition and to replace rapidly aging electric infrastructure, we are going to need to invest in building many more transmission lines,” Heinrich said. Rep. Steven Horsford (D-Nev.) will introduce companion legislation in the House, his office said. The proposals land as top Republicans on Wednesday said President Joe Biden and House Speaker Kevin McCarthy (R-Calif.) agreed to tackle pieces of the permitting puzzle that were left on the debt ceiling cutting room floor. But that maneuvering could soon force Democrats to support more changes to landmark environmental statues in exchange for getting Republicans to support grid reforms. “There is an urgency,” said Rep. Garret Graves (R-La.), who suggested there would be a bipartisan, bicameral task force on permitting. “The White House acknowledged that they have a major problem on transmission. They do. They are exactly right,” he said. The “Fiscal Responsibility Act,” which passed the House Wednesday night, includes long-sought Republican asks such as fast-tracking environmental reviews for energy projects as well as the final approval of the Mountain Valley pipeline, which runs from West Virginia to Virginia. Even though negotiators tried to wedge in transmission language, a possible bill in the mix — from Sen. John Hickenlooper (D-Colo.) and Rep. Scott Peters (D-Calif.) — was ultimately struck and replaced by a two-year study from the Federal Energy Regulatory Commission. “What was added to this bill by folks on our team [at the White House] looks out for the interests of energy producers at the expense of energy consumers and I remain troubled by that,” said Rep. Sean Casten (D-Ill.), who has his own bill to fix transmission lines.

Senate clears debt deal with pipeline, permitting mandates - The Senate voted 63-36 late Thursday night to extend the nation’s borrowing authority ahead of a June 5 deadline after disposing of several contentious amendments — including on the Mountain Valley pipeline. The “Fiscal Responsibility Act,” H.R. 3746, will suspend the nation’s debt limit until after the 2024 election. It will cut spending, institute new work requirements for federal food assistance programs and make a suite of changes to the National Environmental Policy Act as part of “permitting reform.” The legislation passed the House late Wednesday night with the support of 165 Democrats and 149 Republicans in a 314-117 vote. It now heads to President Joe Biden for his signature. The vote breakdown in the Senate followed a similar template as the House, though it occurred under some different circumstances. Many Senate Republicans, for instance, blasted cuts to defense programs in the debt limit deal. They came around after an agreement to provide floor time for fiscal 2024 spending bills and a potential national security supplemental. Senate climate hawks, meanwhile, were allowed a vote on an amendment — albeit without success — to strip out a provision to green-light completion of the Mountain Valley pipeline, a controversial natural gas project that would run through Appalachia and which has been the subject of environmental lawsuits for years. The provision was included in the debt ceiling bill in a surprise bid to make good on an outstanding promise to Sen. Joe Manchin (D-W.Va.), specifically that the White House would back the pipeline in exchange for the senator’s support last year for the Inflation Reduction Act. Environmental activists and their progressive allies in Congress railed against its inclusion. The effort to remove it from the bill was championed on Capitol Hill by Sen. Tim Kaine (D-Va.), a self-described “energy moderate” who has accused the Biden administration of putting its “thumb on the scale” in favor of one project still being litigated by the courts. In a floor speech Thursday, Kaine described the Mountain Valley pipeline as “a highly controversial projects that directly impacts families whose land will be taken for the [pipeline] project, and I stand on their behalf.” Kaine also took the White House to task for not calling him and Virginia’s other Democratic senator, Mark Warner, to advise them the provision would be included in the debt ceiling deal. Warner supported the amendment Thursday night, while others who might have otherwise backed Kaine’s effort voted against it in fear of jeopardizing passage of the entire measure. It failed, 30-69. Schumer had warned that any changes to the bill in the Senate would likely not have left enough time for the House to vote on it again ahead of the Monday deadline. Manchin, in his own floor speech Thursday, made an impassioned plea in support of the pipeline project, saying it would put 2,500 people to work and deliver as much as $50 million annually to West Virginia “and some to Virginia.” He said that MVP, as it’s called in shorthand, stands for the “’Most Valuable Pipeline’ we have to offer reliable energy to the people of America.”

Debt ceiling: Senate passes debt limit deal to avert default - The Senate passed a bill late Thursday evening to suspend the nation’s debt limit through January 1, 2025, averting a first-ever US default just days ahead of the deadline.The House earlier this week already passed the measure, which can now be sent to President Joe Biden to be signed into law. Biden, just moments after the Senate passed the debt limit bill, praised Congress for its efforts and said in a statement, “I look forward to signing this bill into law as soon as possible.” The president will deliver an address to the nation on Friday on averting default.Suspending the debt limit through 2025 takes the threat of default off table until after the presidential election. In addition to addressing the debt limit, the bill caps non-defense spending, expands work requirements for some food stamp recipients and claws back some Covid-19 relief funds, among other policy provisions. The Senate voted 63 to 36 to pass the bill.The timeframe to pass the bill through Congress was extremely tight with little room for error, putting enormous pressure on leadership in both parties as the threat of default loomed.To get the bill over the finish line, lawmakers raced the clock to prevent a default ahead of June 5, the date the Treasury Department warned it will no longer be able to pay all of the nation’s obligations in full and on time – a scenario that could trigger global economic catastrophe.The bipartisan debt limit deal was struck between the White House and House Republicans – the culmination of long days and late nights of contentious negotiations that at times looked like they might break down and fall apart entirely.The debt limit bill faced backlash from both the far left and the far right, but ultimately won support from a significant number of lawmakers on both sides of the aisle.Senate Majority Leader Chuck Schumer touted Democrats’ role in the debt ceiling agreement after the Senate passed the bill.“We may be a little tired, but we did it,” Schumer said. “So we’re very, very happy. Default was the giant sword hanging over America’s head, but because of the good work of President Biden, as well as Democrats in the House and Democrats in the Senate, we are not defaulting.”Senate Minority Leader Mitch McConnell issued a statement on the passage of the debt ceiling agreement, saying that “an important step toward fiscal sanity will finally become law.”The measure passed the House by a wide margin – 314 to 117 – on Wednesday.

Debt ceiling vote: How every senator voted | CNN Politics -- Voted Nay:

• 64. Sen. Ed Markey of Massachusetts
• 65. Sen. Jeff Merkley of Oregon
• 66. Sen. Elizabeth Warren of Massachusetts
• 67. Sen. John Fetterman of Pennsylvania
• 68. Sen. Bernie Sanders of Vermont

Biden signs debt ceiling bill, avoiding government default -- President Biden has signed a debt ceiling increase, raising the government's borrowing limit and averting a potential default on the national debt. The White House announced the bill signing in an emailed statement in which Biden thanked congressional leaders for their efforts. The Treasury Department had warned that failing to increase the government's borrowing limit would leave the country without cash to pay its bills and more than likely cause an economic catastrophe. "I just signed into law a bipartisan budget agreement that prevents a first-ever default while reducing the deficit, safeguarding Social Security, Medicare, and Medicaid, and fulfilling our scared obligation to our veterans," Biden tweeted Saturday. "Now, we continue the work of building the strongest economy in the world."Republicans had passed legislation in April to raise the debt limit which also curtailed government spending, but Biden and Democratic lawmakers rejected their bill. The two sides went into a standoff that lasted for weeks as Biden refused to negotiate, demanding a clean debt limit increase before any discussion on spending. However, as the deadline to raise the borrowing limit or start missing debt payments approached, both sides entered into tense negotiations to work out a compromise. The final deal Biden struck with House Speaker Kevin McCarthy, R-Calif., — called the Fiscal Responsibility Act — suspends the public debt limit through Jan. 1, 2025 and cuts non-defense spending to near fiscal 2022 levels, capping growth at 1% for the next two years and proposing non-mandatory caps for the four years after. It also claws back some money aimed at the Internal Revenue Service and some unspent COVID-19 pandemic funds. The law increases defense spending by 3% for the first year, below the level of inflation. The bill passed with bipartisan support in both the House of Representatives and the Senate, though more Democrats voted for it than Republicans. Lawmakers on the right and left kicked and screamed the whole way and called it a betrayal of their respective values.

How Manchin and Sinema quietly steered the McCarthy-Biden debt deal. - Many people in Washington were surprised when May’s debt ceiling negotiations quickly narrowed down to House Speaker Kevin McCarthy, his lieutenants and top White House aides. Not Sen. Kyrsten Sinema (I-Ariz.). In fact, it was sort of her idea. “I did suggest to the White House that meetings would be more productive if the people who actually had the authority to make a deal and deliver the votes were the only ones in the room,” Sinema recalled in an interview. Senators typically loathe the sort of top-down negotiations that produced the deal to lift the debt ceiling through 2024, preferring to use the chamber’s notorious bipartisan gangs that give them more direct input. And this time around only a handful of rank-and-file lawmakers were able to directly influence the process, most distinctly Sinema and Sen. Joe Manchin (D-W.Va.). The deal was pretty much exactly where the two senators hoped everything would end up — alienating only the far right and left and empowering the center. “It’s a wonderful deal when you have the extremes back in the minority,” Manchin said. The two centrist senators barely entered the public debt narrative other than pressing for negotiations. Yet each played an integral role in jump-starting discussions and assembling the particulars of the deal, particularly the legislation’s work requirement, spending and energy provisions. Sinema leaned on years of relationships with McCarthy and lead negotiators Reps. Garret Graves (R-La.) and Patrick McHenry (R-N.C.) while also consulting closely with OMB Director Shalanda Young and White House counselor Steve Ricchetti, who led the White House strategy alongside Legislative Director Louisa Terrell. She spent Thursday racing around the Capitol, aiding Senate leaders as they sought an agreement to speed votes up, spending literally hours helping craft joint statements and locking in amendment votes. She got used to playing the hectic role of shuttle diplomacy over the past month. Last week, as Sinema was getting ready to appear on Fox News during a visit to the Arizona border, her cell phone lit up with separate calls within a few minutes from several major debt players: McHenry, Young and Senate Majority Leader Chuck Schumer. Manchin credited Sinema with utilizing friendships from her past life in the House to get things rolling. The former governor had a different lane. The West Virginia moderate coordinated with centrist Democrats in the House on messaging and spoke to both McCarthy and Schumer about modest ways to rein in spending. He finally got the framework very few in his party wanted just a month ago: some spending restraint, and yes, approval of the Mountain Valley Pipeline.

Debt limit deal gives Republicans a win on energy. Is there still room for a bipartisan agreement? - Democrats are giving up an energy bargaining chip in the debt limit deal, raising questions about whether they will be able to accomplish high-priority electricity reforms. For months, Democrats and Republicans have been working on a bipartisan package to speed up permitting for energy projects that could include provisions that both sides want. But in the debt deal that passed the House this week, Republicans get significant energy provisions they have been pushing for, such as limits on environmental reviews. Democrats, meanwhile, did not get their electric infrastructure buildout, a concession that could limit their leverage in future negotiations. Some also argue that Democrats gave up too much and did not get enough on energy in the deal. “I don’t feel that we got what I’d hoped we would get and I feel like we gave up a little more than I would’ve wanted to give up,” Sen. John Hickenlooper (D-Colo.) told reporters Tuesday evening. Lawmakers on both sides of the aisle have been working for months on a deal to speed energy projects and other infrastructure projects. A major driver for Democrats in the negotiations is the potential to build out more power lines, which they argue is key to getting more renewable energy on the grid to fight climate change. Republicans, meanwhile, have been pushing for more procedural changes that they say will speed up energy projects across the board. Such changes include limiting timelines that environmental analyses for projects can take and limiting how long challengers have to sue over projects. Republicans have also released legislation that specifically bolsters oil, gas and mining. Even after the debt deal, Republicans still see more to do and said this week that they want to play ball with Democrats to get a bipartisan deal done. Sen. Kevin Cramer (R-N.D.) told reporters Wednesday that he sees the permitting issue going “one of two ways.” “One way might be to check the box, we did this, and then never think about it again. The other possibility would be that we create a little bit of momentum and say, ‘OK, now let’s get serious and drill down a little bit,’” he said. “I hope it’s the latter.” Speaking at a Republican leadership press conference, Sen. Shelley Moore Capito (W.Va.), the top Republican on the Senate Environment and Public Works Committee, described the debt limit deal as giving lawmakers a “jumping point to start off again in our bipartisan talks” on permitting. She separately told reporters that she specifically hoped to see reforms to the judicial review process. On the House side, a spokesperson for Natural Resources Committee Chairman Bruce Westerman (R-Ark.) also said he hopes to get more done on the issue. “We hope to come back to the negotiating table to get judicial review across the finish line as well, and the Dems may try to move transmission reforms as part of a bipartisan compromise,” spokesperson Rebekah Hoshiko said via email. However, some are skeptical that a bipartisan deal is achievable. “There’s a bipartisan interest in pretending that there’s a broader deal,” quipped Rep. Sean Casten (D-Ill.). “These guys can barely get their act together” to prevent financial disaster, he said. “There’s no way that they are going to have a conversation, much less a bipartisan conversation, about how to inject competition into power markets.”

The Big Part of the Debt Ceiling Deal Congress Isn’t Talking About - The House passed legislation Wednesday night that will suspend the nation’s borrowing limit and reduce the federal deficit, the result of lengthy negotiations between House Republicans and the White House.But the bill is only part of the full deal. A New York Times analysis of public descriptions of the agreement finds that the full deficit savings will be only about two-thirds of what is captured in the bill. That’s because the agreement struck by House Speaker Kevin McCarthy and President Biden will require Congress to appropriate much more spending as part of a second set of bills expected to pass in coming months.Those future changes, which the White House is calling “agreed-upon adjustments,” and which many observers have called side deals or even gimmicks, would increase federal spending in unconventional ways and then direct that money into the part of the budget that the current bill cuts the deepest.Instead of a total deficit reduction of $1.5 trillion over a decade, as the Congressional Budget Office has projected, the full package would probably reduce deficits by about $1 trillion, including interest payments, over a decade. That’s a major shift from where Republicans started negotiations — the bill they passed last month would have reduced deficits by $4.8 trillion.Because the second half of the deal will not come up for a vote right away, lawmakers could change their minds. But negotiators are confident enough in the agreement that they are moving forward with the debt limit bill. That legislation also includes an incentive for Republicans to pass the second part: If they don’t do so by the end of next April, defense spending will be automatically cut, an outcome most of them say they would like to avoid.Most of the savings in the current legislation come from spending caps on a part of the budget known as nondefense discretionary spending. That category includes programs across the government that Congress must fund each year through legislation, including domestic law enforcement, environmental protection and air traffic control. The Congressional Budget Office projects that the caps would result in lower spending than its “baseline” forecasts — what would otherwise happen if current spending kept pace with inflation. But many of the side deals negotiated between the White House and Mr. McCarthy would pump money back into domestic spending, reducing the effects of the caps. The White House has identified several categories of spending that would be increased in a future bill, which would effectively backfill the cuts made to these programs. None of them are technically described as discretionary spending, which is why some critics have called them gimmicks. One, for example, would authorize additional spending for “emergencies,” then allow it to be spent on normal domestic programs. Altogether, the additional spending could increase the deficit by $138 billion for the first two years, a change that is likely to compound over time.The bill also modifies the defense budget, with plans to increase it slightly next year and then cut it slightly in 2025. But the changes to defense spending are much smaller relative to nondefense programs. (Our charts show the effects of the proposals in dollar terms, but many budget experts say it is more useful to compare the size of the budget deficit with the size of the economy, which is expected to grow.)

What next in the growing dollar crisis? When the major imperialist powers, led by the US, imposed economic and financial sanctions against Russia at the start of the Ukraine war, they believed these measures would quickly cripple the Russian economy, leading to a capitulation or a move for regime change from within the ruling oligarchy. That has not taken place. Russia has found ways of getting around the sanctions, at least so far. But the US-imposed measures have had some unintended consequences. They have led to efforts to shift away from dependence on the dollar as the preeminent global currency, which, if continued, will have major consequences. In an interview with CNN’s Fareed Zakaria last month US Treasury Secretary Janet Yellen raised this danger. “There is a risk when we use financial sanctions that are linked to the role of the dollar that over time it could undermine the hegemony of the dollar,” she said. The most significant decisions were to cut Russia out of the SWIFT global payments system and to freeze the $300 billion worth of financial assets held by the Russian central bank. These measures were able to be undertaken because of the role of the dollar as the world’s global reserve currency. Freezing the assets of the Russian central banks sent a shock wave throughout the global financial system—going well beyond Russia—because it was recognised that such an action could be taken against other countries that crossed the US path. Over the past year, Russia, China, Saudi Arabia and Brazil among others have been seeking to make trade deals which are carried out in their own currencies, rather than the dollar. The moves made so far fall well short of replacing the dollar, but there is no doubt about the trend of development. Another expression of concern is the increase in the price of gold and, most significantly, the increase in gold purchases by central banks. In the aftermath of World War 2, the dollar become the major global currency and store of value. It was able to play this role because of the vast economic supremacy of US capitalism and the decision taken at the Bretton Woods conference of 1944 that the dollar would be redeemable for gold at the rate of $35 per ounce. That system was ended in August 1971, when—because of the relative decline of the US vis-à-vis its major competitors, reflected in the emergence of a balance of trade deficit, replacing the surpluses of the immediate postwar years—President Nixon unilaterally closed the gold window. Since then, the dollar has functioned as a fiat currency, that is, without the backing of a material commodity, such as gold, embodying value. Rather, it rested on the financial and political power of the US. In a recent comment in the Financial Times (FT) dealing with the global position of the dollar, financial analysist Mohamed El-Erian noted its role as the global reserve currency rested on three US attributes. These have been “its status as the world’s largest economy, the depth and breadth of its financial markets, and the predictability stemming from institutional maturity and respect for the rule of law.” The three conditions for dollar stability he lists have been shaken to their foundations.

US debt ceiling deal strands $16 billion of defense side-projects | (Reuters) - A $16 billion list of lower-priority defense items like tanks, helicopter upgrades and a ship, that would normally be paid for as part of the defense budget, could go unfunded after the U.S. passed a landmark bill that lifts the debt ceiling but curbs federal spending. The agreement to avoid default left legislators, the Department of Defense and other agencies wondering how to pay for projects that in past years were last-minute additions to the must-pass defense policy and appropriations bills, that generally get approved with little discussion. The debt deal capped national security spending in fiscal 2024 at $886 billion, which is what U.S. President Joe Biden requested. Among the military services' "unfunded priorities" lists are Abrams tanks made by General Dynamics (GD.N), a plane made by Lockheed Martin (LMT.N), and a ship for the Marines made by Huntington Ingalls Industries (HII.N). Each service generates its own list and this years' included new facilities, ship upgrades, munitions, and long-range radars to protect the U.S. Congressional aides said that prior to the debt deal, the relevant committees were eyeing a national security budget of more than $900 million for fiscal 2024. Ordinarily, some of the $16 billion worth of unfunded priorities would get tacked on, as well as billions worth of lawmaker initiatives. Ultimately aides said $30 to $40 billion more could have been added to the defense top line. In recent years Congress has increased defense spending by more than any president requests, generally by tens of billions of dollars. In 2022 and 2023 Congress increased spending by more than $20 billion each year. Prior to that, the Pentagon used "Overseas Contingency Operations" (OCO) funds for a decade to boost the amount of money available to avoid budget caps passed by Congress. This year, the debt ceiling deal could make that more difficult.

Russia Issues Arrest Warrant For Lindsey Graham Over 'Killing Russians' Remarks -Russia's Interior Ministry has issued an arrest warrant for South Carolina Senator Lindsey Graham after video surfaced of the Republican hawk telling Ukrainian officials that "Russians are dying" due to US military aid and that "it’s the best money we ever spent."There are claims that the video released of the Friday meeting in Kiev wherein Graham spoke the words to Ukraine's President Zelensky were edited, however. And yet, it was Zelensky himself that posted the edited clip to his official social media channels. Russia’s Investigative Committee announced the criminal case against Graham as he "declared the financial involvement of the United States is causing the death of Russian citizens."Putin spokesman Dmitry Peskov reacted to Graham's provocative statements by saying, "It’s difficult to imagine a greater shame for a country than having such senators" while Security Council Deputy Chairman Dmitry Medvedev said the Republican Senator is an "old fool."The arrest warrant and him being placed on a 'wanted list' will of course remain largely symbolic, given Graham certainly won't be traveling to Russian territory or through its airspace anytime in the foreseeable future.

Lindsey Graham responds defiantly to arrest warrant from Russia - Sen. Lindsey Graham had a defiant message to Russia after the country’s Interior Ministry on Monday issued an arrest warrant for the South Carolina Republican.“Here’s an offer to my Russian ‘friends’ who want to arrest and try me for calling out the Putin regime as being war criminals: I will submit to jurisdiction of the International Criminal Court if you do,” Graham said Monday.“Come and make your best case. See you in The Hague!”Graham was referring to The Hague, a city in The Netherlands where the International Criminal Court holds its trials. The International Criminal Court issued an arrest warrant for Russian President Vladimir Putin in March pertaining to the forced transfer of children from Ukraine to Russia.Graham’s comments followed the Russia’s Interior Ministry’s decision to issue an arrest warrant for Graham after the senator made comments related to the fighting in Ukraine in a meeting with President Volodymyr Zelenskyy. Graham noted that “the Russians are dying” and described the U.S. military assistance to the country as “the best money we’ve ever spent.”In response, the editor-in-chief of the Russian-backed English-language news outlet RT News issued a veiled threat by saying they have Graham’s address when referring to Pavel Sudoplatov, a Soviet general who was involved in several intelligence operations, including Leon Trotsky’s assassination. (Trotsky was slain in Mexico in 1940.)Graham has sometimes amped up his rhetoric about Putin beyond mere criticism. In March 2022, Graham called for a Julius Caesar-style killing of Russian President Vladimir Putin after Russia invaded Ukraine. The White House later pushed back on those comments, stating that it’s “not the position of the United States government.”

RFK Jr Calls For "Mature Conversation" On Ukraine As Admin Is "Lying To Us" - 2024 presidential candidate Robert F. Kennedy Jr. has once again blasted the United States government for lying to the public and to the world about Ukraine, while calling out the Military Industrial Complex in particular. It's not the first time. Earlier this month an avalanche of mainstream media headlines condemned his take when he told UnHerd the following: "We should have listened to Putin over many years. We made a commitment to Russia, to Gorbachev, that we would not move NATO one inch to the east. Then we went in, and we lied." More recent speaking engagements wherein he utters unpopular truths on Ukraine have gone viral this week. In one of them, he tells an audience at a campaign event, "Our government is lying to us about it. The media is going on with the lie…It’s a laundering operation for the Military Industrial Complex." Among Kennedy's chief talking points is that the country needs a "mature conversation" on the conflict, but that the American public is not getting that. Interestingly, he said that while many Americans are moved by compassion for the Ukrainian people, including his son who actually early on went to fight within Ukraine's foreign legion, Washington has been deceptive in selling Americans on the billions in defense aid poured into the conflict. "We were told that the reason we were going over there is because it was a humanitarian mission," RFK Jr said. "But then every choice that we made along the way, that's been about prolonging the war and increasing the bloodshed, and refusing to negotiate. If it was a humanitarian mission we would won't to terminate the war, to shorten it, and to reduce the amount of bloodshed," he continued. He then talked about the "real reason" for escalation of the conflict seen in the rhetoric of Biden and some of his top officials as including regime change against Vladimir Putin, as well as weakening and exhausting Russia's military in order to prevent its effectiveness in future conflicts elsewhere in the world.

China Declines Meeting Between US and Chinese Defense Chiefs -- The US said Monday that China has declined an offer for a meeting between Secretary of Defense Lloyd Austin and Chinese Defense Li Shangfu, who is under US sanctions.The US proposed for the two military leaders to meet on the sidelines of the Shangri-La Dialogue that will be held in Singapore this week, but Beijing has called for the US to lift the sanctions on Li in order for him to meet with Austin.Li was sanctioned by the US in 2018 when he was the head of China’s Equipment Development Department and oversaw the purchase of Russian military equipment. The sanctions were imposed using the 2017 Countering America’s Adversaries Through Sanctions Act.Li was appointed as defense minister in March. According toBloomberg, China’s position is that Li wouldn’t be on equal footing with Austin if they met while the sanctions were still in place.The US claims that it’s looking to foster communication with China but has so far refused to lift the sanctions on Li. President Biden was asked about the issue during the recent G7 summit in Hiroshima, Japan, and said the sanctions were “under negotiation,” but there’s no sign the US intends to lift them.The Pentagon slammed China for declining the meeting, accusing Beijing of having a “concerning unwillingness” to engage in military discussions. Pentagon spokesman Brig. Gen. Pat Ryder said the sanctions do “not prevent Secretary Austin from meeting with him in the course of conducting official United States Government business.”

Report: Taiwan Receives Stinger Missiles as Part of Free Military Aid Package from US --Taiwanese media has reported that Taiwan received delivery of Raytheon-made Stinger anti-aircraft missiles from the US as part of a $500 million package of free military aid that Washington has been preparing for Taipei.According to Taipei Times, the Stingers arrived in a Boeing 747 on Thursday night. So far, the US and Taiwanese governments have not confirmed the delivery, but both sides said recently that the $500 million in weapons would be sent soon.The $500 million in free weapons is being pulled from US military stockpiles using the Presidential Drawdown Authority (PDA), the primary way the Biden administration has been arming Ukraine. The 2023 National Defense Authorization Act (NDAA) includes $1 billion in PDA for Taiwan.The military aid for Taiwan is unprecedented as the US has sold weapons to the island since severing relations with Taipei in 1979 to open up with China but hasn’t provided arms free of charge.The NDAA also included $2 billion for Taiwan under the State Department’s Foreign Military Financing program, which gives foreign governments money to purchase US arms. But the FMF funds did not make it past the appropriations committee.The new US support angers China as it views such steps as an affront to Washington’s one-China policy. Taiwanese media has also recently reported that the US sent about 200 troops to Taiwan to assist in training.

American Officials Erase US Role in Empowering Their New Number One Enemy China --As Washington increasingly inflates the China threat, a few pieces of sly propaganda to sell that conflict are coming more into focus. Recent speeches devoted to China by key figures in the Biden administration largely rested on falsehoods that conveniently erase decades of mistakes by the American elite and therefore shift all the blame onto China. Both Treasury Secretary Janet Yellen and national security advisor Jake Sullivan recently engaged in this rewriting of history that claims the Chinese stole American jobs and similarly that Beijing nefariously took control of the “clean” energy industry and will now use its position to coerce other nations, potentially slowing climate action.One can see why it’s an attractive talking point for DC officials as it helps sell the conflict to working class Americans and environmentalists, but it’s simply not true.The blame for American industry (green or not) relocating to China was caused by the greed of American elites who reaped massive profits in the process. Now they claim taking on China will bring back jobs and help tackle climate change. Nevermind that much of the American industry now being relocated out of China is going to other “low-cost” countries or that the US war machine is the world’s largest greenhouse gas emitter. […] Can you blame Beijing? If the US wants to sell off their industry, wouldn’t it be crazy not to take it? The fact is the Chinese used the system Washington built against them, and now the likes of Sullivan and Yellen cry foul. The loss of US manufacturing decimated the country’s research capacity. It means the US relies on components made in China for aircraft carriers and submarines. It means a trillion dollars in defense spending helps enrich China – the very country which is supposedly behind the increased defense spending in the first place. Of course, Yellen and Sullivan admit no mistakes by the US ruling class. It was impossible to know this would happen, they say, despite warnings at the time that this very situation would arise.

US Nuclear Secrets At Risk From Insider Threats With Devastating Consequences: Report-- U.S. nuclear secrets are at risk from insider attacks, owing to the Department of Energy’s (DOE’s) lack of security, according to the Government Accountability Office (GAO).Allison Bawden, a GAO director for nuclear security, said the insider risk is illustrated by the 1993 movie “Jurassic Park,” when a disgruntled computer programmer tries to steal from his employer to solve his personal financial troubles.“Remember that fictional employee who stole dinosaur embryos from InGen?” wrote Bawden on Twitter on Thursday, while sharing a link to the office’s report and a photo of the fictional programmer.“Insider threats aren’t just for dinosaur parks - they’re also a risk for federal agencies,” she added. “For example, what if insiders wanted to steal the nation’s nuclear weapons and information?“To avoid being like InGen, DOE could better protect nuclear material & information by fully implementing its insider threat program. This includes training all employees & contractors to identify & report suspicious behavior & better monitoring networks for suspicious activity.According to the report, the DOE established the insider threat program in 2014 but has not yet implemented “all required measures.” “The DOE has not implemented seven required measures for its Insider Threat Program, even after independent reviewers made nearly 50 findings and recommendations to help DOE fully implement its program,” the report says.The report warned that the DOE’s failure to fully implement all the measures could lead to “devastating consequences.”“The theft of nuclear material and the compromise of information could have devastating consequences,” the report says.“Threats can come from external adversaries or from ‘insiders,’ including employees or visitors with trusted access.”“Such threats could have significant consequences for national security and could include unauthorized release of classified information; workplace violence; or improper access to sensitive nuclear weapons, material, and components,” the report adds.

US Increases Sanctions on Syria After Damascus Rejoins Arab League -The US on Tuesday imposed new sanctions on Syria for the first time since the country was brought back into the Arab League as part of a normalization push between Damascus and regional governments.According to the Treasury Department, the US sanctioned two Syrian money service businesses that are accused of helping the government of Syrian President Bashar al-Assad maintain access to the global financial system. The companies are also accused of aiding Hezbollah and Iran’s Islamic Revolutionary Guard Corps.The businesses were targeted using the Caesar Act, a law the US has used to impose sanctions on Syria that are specifically designed to prevent the country’s reconstruction. The House voted overwhelmingly to maintain Caesar Act sanctions on Syria following a devastating earthquake that killed thousands of Syrians in February.Hawks in Congress are infuriated by Syria’s readmission into the Arab League, which was spearheaded by Saudi Arabia despite US opposition. A bipartisan group of lawmakers in the House introduced a piece of legislation that aims to combat Syria’s normalization in the region by expanding sanctions.Because they are designed to prevent Syria’s reconstruction, US sanctions on the country have had a devastating impact on the civilian population. On top of the economic campaign against the country, the US continues to occupy eastern Syria and controls most of its oil resources.

US Flies Bombers Over Bosnia Amid Secession Threats -The US flew two B1-B bombers over Bosnia and Herzegovina on Tuesday in a show of force meant as a warning to Milorad Dodik, the leader of the semi-autonomous Serb republic within Bosnia, known as Republika Srpska.Dodik has been threatening to declare independence due to a dispute over a property law. US Ambassador to Bosnia Michael Murphy said the bomber flights were a demonstration of a “rock-solid commitment to the sovereignty and territorial integrity” of Bosnia-Herzegovina.While flying over the country, the B-1B bombers also participated in exercises that involved Bosnia’s military and US special operations forces. Murphy said the US is committed to its relationship with Bosnia’s armed forces in the face of an “acute threat from malign actors outside.”Dodik, who is pro-Russia, said the US was “disrespecting” Bosnia’s sovereignty by flying bombers over the country. He said the US was treating Bosnia “as a guinea pig that they can suffocate and cut off its air supply for as long as they want.”

Uganda’s anti-LGBTQ law spurs bipartisan uproar in US - Leaders in Congress are forcefully condemning a sweeping new anti-gay law in Uganda, calling on the Biden administration to reconsider assistance to the East African nation. “Uganda’s appalling Anti-Homosexuality Act is the latest indication of Pres. Museveni’s hostility to human rights & fundamental freedoms,” Senate Foreign Relations Committee Chairman Bob Menendez (D-N.J.) said Tuesday on Twitter. “Torture of political opposition, murder of the press & now a law making Uganda one of the most dangerous places for the LGBTQ+ community.” Ugandan President Yoweri Museveni signed into law sweeping legislation Monday that calls for the death penalty in cases of “aggravated homosexuality,” which the state defines as homosexual acts carried out by those infected with HIV or homosexual acts that involve children, disabled people or those drugged against their will. The law calls for life in prison for engaging in gay sex. The law has provoked public backlash from officials, including from President Biden, who responded by threatening sanctions against those involved with carrying out related human rights abuses. He also said he instructed his National Security Council “to evaluate the implications of this law on all aspects of U.S. engagement with Uganda.” Menendez reposted a statement from December 2020, when he introduced a bill condemning the Museveni administration and calling on the Biden administration to take action, writing at the time, “the long standing effort to build democracy in Uganda is under grave threat, and we must take action in support of those defending political freedoms in the country.” “As I’ve done before, I call on [Biden] to review all support to the Museveni regime & redirect assistance to those fighting to uphold democracy & human rights protections for all Ugandan people,” Menendez wrote Tuesday. Senate Finance Committee Chairman Ron Wyden (D-Ore.) also called on Biden to revoke trade benefits from Uganda under the African Growth and Opportunity Act (AGOA). Biden said in his statement Monday that he would take the law into consideration when considering Uganda’s eligibility for AGOA.

Mexico cracks down on migrants, performing Washington’s dirty work at the border - It has been just over two weeks since the Biden administration lifted Title 42, the Trump-era border policy that utilized the pandemic to deny asylum seekers entry at the US-Mexico border. While right-wing politicians sought to whip up anti-immigrant sentiment with warnings of migrants flooding the border, the opposite has occurred. The number of migrants at the US-Mexico border has declined. Crossings have decreased by half since Title 42 expired on May 11. This, however, has less to do with a drop in the number of people fleeing and seeking asylum than with the Mexican government’s crackdown on migrants. In 2019, the Trump administration and the government of Mexican President Andrés Manuel López Obrador (AMLO) implemented the Migrant Protection Protocol (MPP), previously known as “Remain in Mexico.” The purpose of the program is to have Mexican authorities carry out Washington’s dirty work, requiring asylum seekers from Mexico and Central America to remain in Mexico while their immigration cases are considered in the United States. Despite the fact that many Mexican citizens are fleeing conditions in the country, Mexico has been deemed a “safe third country,” a designation that only underscores the twisted and punitive nature of the policy. The crackdown by AMLO and the Mexican government on migrants includes the closure of shelters and busing of migrants to the southern and interior states in Mexico, with restrictions that require them to remain in their assigned state or face deportation. The Miami Herald reported that “the Mexican government has closed dozens of migrant shelters and begun busing migrants away from its northern border to other states. Authorities have also suspended 45-day permits that allow undocumented migrants to travel through the country without fear of deportation or detention.” These recent changes to US and Mexican immigration law are intended to undercut the immigration status of migrants in Mexico and justify their deportation. No longer able to apply in person, migrants are told they must secure appointments at US ports of entry using the US Customs and Border Patrol (CBP) One app. However, many migrants are reporting difficulties with the app, which fails to give them an appointment despite multiple application attempts. The new US asylum process under Title 8 requires migrants who present themselves at the border without an appointment to prove that they were denied asylum in a “safe third country” en route to the US. If migrants cannot prove this at the US border, they face immediate deportation and a ban on reapplying for asylum of at least five years.

Border Patrol wouldn't review the medical file of a girl with a heart condition before she died (AP) — Border Patrol medical staff declined to review the file of an 8-year-old girl with a chronic heart condition and rare blood disorder before she appeared to have a seizure and died on her ninth day in custody, an internal investigation found. U.S. Customs and Border Protection has said the child’s parents shared the medical history with authorities on May 10, a day after the family was taken into custody. But a nurse practitioner declined to review documents about the girl the day she died, CBP’s Office of Professional Responsibility said in its initial statement Thursday on the May 17 death. The nurse practitioner reported denying three or four requests from the girl’s mother for an ambulance. Anadith Tanay Reyes Alvarez, whose parents are Honduran, was born in Panama with congenital heart disease. She received surgery three years ago that her mother, Mabel Alvarez Benedicks, characterized as successful during a May 19 interview with The Associated Press.

US expands slots for asylum app at land crossings as demand overwhelms supply (AP) — U.S. authorities on Thursday expanded slots to seek asylum at land crossings with Mexico through a mobile app for the second time in less than a month, seeking to dispel doubts it isn’t a viable option. There are now 1,250 appointments daily at eight land crossings, up from 1,000 previously and 740 in early May. The increase “reflects our commitment to continue to expand lawful options for migrants,” said Blas Nuñez-Neto, the Homeland Security Department’s assistant secretary for border and immigration policy. “We’ll continue to expand appointments at the border as our operations allow in terms of capacity.” Nuñez-Neto called CBP One a “safe and orderly option” during a visit to Harlingen, Texas. He announced the expansion a week after Texas sued to end what the state government considers an illegal method of boosting immigration. Demand has far outstripped supply from the Jan. 12 start, prompting many to consider crossing the border illegally or giving up. Enrique Lucero, migrant affairs director for the city of Tijuana, said the latest increase would have little impact considering how many are waiting.

Trump pledges to end birthright citizenship on first day in office Former President Trump is returning to his calls to remove birthright citizenship, with his 2024 White House campaign announcing Tuesday he would seek to end it via executive order on his first day in office. Trump announced his plan on the 125th anniversary of United States v. Wong Kim Ark, the Supreme Court case that established the constitutional right to birthright citizenship. The proposal echoes a longtime demand of immigration restrictionists and a measure Trump toyed with while in office, attracting criticism from both immigration advocates and legal experts. Most experts agree that a president does not have authority to end birthright citizenship through an executive order, primarily because the practice is enshrined in the Constitution. The 14th Amendment grants citizenship to those “born or naturalized in the United States, and subject to the jurisdiction thereof.” The widely accepted interpretation of that amendment — that it applies to children born in the United States regardless of the parents’ immigration status — has held since an 1898 Supreme Court case involving a U.S. citizen with Chinese parents. The 14th amendment was adopted after the Civil War to guarantee equal rights for former slaves – immigration restrictionists argue that excludes the children of other groups like undocumented immigrants from its benefits. “As members of the Reconstruction Congress explained in 1866, the narrow exception to birthright citizenship applied only to the children of diplomats and those born into Native American tribes, who were under the ‘jurisdiction’ of a separate sovereign and did not need to comply with all U.S. laws,” wrote Amanda Frost, a professor of law at the University of Virginia and author of “You Are Not American: Citizenship Stripping from Dred Scott to the Dreamers.” “In contrast, immigrants and their children living in the United States were and are required to follow all federal and state laws or face criminal and civil penalties and so are fully ‘subject’ to the nation’s ‘jurisdiction.'” According to the Trump campaign, the executive order “will explain the clear meaning of the 14th Amendment,” which it says is that the children of foreign nationals born in the United States are not subject to the jurisdiction of the United States as defined in the Constitution.

US agency says 8.3 mln homes, businesses lack access to high-speed broadband - (Reuters) - More than 8.3 million U.S. homes and businesses lack access to high-speed broadband internet, the Federal Communications Commission said Tuesday in unveiling its revised national broadband access map. The FCC said it has increased its estimates of homes and businesses without access by nearly 330,000 locations. The data is crucial for funding decisions. Congress in 2021 approved $42.45 billion in grants for states and territories to expand broadband infrastructure to areas without access. Advertisement · Scroll to continue Report this ad The Commerce Department's National Telecommunications and Information Administration (NTIA) reiterated Tuesday it plans to announce by June 30 how it intends to allocate broadband infrastructure grants to states and territories. "We will continue to monitor the FCC's updates to availability data to ensure that we make a well-informed allocation of these vital funds," NTIA said. "Ultimately, we know tens of millions of Americans do not have access to high-speed internet service. To serve these Americans, it is vital we continue to implement this program with urgency."

Feinstein expressed confusion over Kamala Harris presiding over Senate: report - Sen. Dianne Feinstein (D-Calif.) reportedly expressed confusion last year when Vice President Harris was presiding over the Senate to cast a tiebreaking vote, according to a new report detailing the difficulties the ailing lawmaker faces as she continues her work in the Senate. The new report from The New York Times outlines the many functions Feinstein’s staff is playing as the 89-year-old senator returns to work after bouts with shingles and encephalitis earlier this year. The Harris example, however, reportedly took place last year and illustrates the difficulty Feinstein has had recalling, at times, the basics of how the Senate operates. According to the new report, Feinstein expressed confusion to her colleagues when she saw Harris presiding over the chamber, in one of many tiebreaking votes the vice president has had to cast. “What is she doing here?” Feinstein asked, according to the report. The report cites “a person who witnessed the scene.” Reports of Feinstein’s memory issues stem back more than a year. And since returning to the Senate after a months-long absence because of her illness, the California Democrat appears frailer than she once had and relies more on her staff to help do her job. Feinstein announced in February she would not run for reelection in 2024 but said she would continue serving the remainder of her term. Some Democrats began calling for her to resign during her prolonged absence, but momentum has slowed on the issue since she has returned to work.

GOP Lawmakers Demand FBI Briefing On Jan. 6 Pipe-Bomb Probe Following Whistleblower Disclosures Regarding Suspect Republicans on the House Judiciary Committee are demanding an FBI briefing on the status of their January 6 Pipe Bomb Investigation following disclosures that the feds have enough information to identify a suspect.In a letter to FBI Director Christopher Wray, Judiciary Committee Chairman Jim Jordan, Rep. Andy Biggs (R-Ariz.) and Rep. Bill Posey (R-Fla.) said the slow progression of the Bureau’s investigation into the pipe bombs “raises significant concerns about the FBI’s prioritization of that case in relation to other January 6 investigations.”Former FBI agent Kyle Seraphin, a whistleblower who worked on the pipe bomb investigation, told the Washington Times that after planting the bombs, the suspect used a MetroRail SmarTrip card to travel through the Washington metro system to a stop in northern Virginia.“The FBI used security footage in the Northern Virginia to identify the license plate of the car that the individual entered,” the congressmen wrote. “Still, the FBI has not identified the subject.”The suspect was caught on surveillance video. He wore a sweatshirt with the hood pulled up, a pair of Air Max Speed Turf shoes with a yellow Nike logo, a backpack and gloves. He was recorded walking through Capitol Hill neighborhoods carrying what federal investigators said were two live pipe bombs.However, Mr. Seraphin said technicians determined the pipe bombs were inoperable.His story runs counter to the FBI’s official version that the devices could have detonated at any time. The bureau repeated that story in January while offering a $500,000 reward for information leading to the suspect’s arrest.Seraphin also told Times reporter Kerry Picket that a separate individual bought the Metrorail SmarTrip card one year before the pipe bomber suspect used it on Jan. 5, 2021.“The card had never been used before. It was bought a year prior by a retired chief master sergeant in the Air Force, and he was a security contractor. So he held a security clearance,” Seraphin said.

GOP Oversight chair to launch contempt proceedings against FBI director - House Oversight and Accountability Chairman James Comer (R-Ky.) said Tuesday he plans to bring contempt of Congress proceedings against FBI Director Christopher Wray after the FBI refused to comply with a subpoena from the committee. Comer issued a subpoena earlier this month compelling Wray to produce any FD-1023 forms — records of interactions with confidential sources — from June 2020 that contain the word “Biden.” “Today the FBI informed the committee that it will not provide the unclassified statements subpoenaed by the committee. The FBI’s decision to stiff-arm Congress and hide this information from the American people is obstructionist and unacceptable,” Comer said in a statement released on Twitter. Though Comer and Wray plan to speak about the subpoena Wednesday, Comer said he still plans to bring the issue for a vote in committee. “While I have a call scheduled with FBI Director Wray tomorrow to discuss his response further, the committee has been clear in its intent to protect congressional oversight authorities and will now be taking steps to hold the FBI director in contempt of Congress for refusing to comply with a lawful subpoena,” he said. In a Tuesday statement, the FBI called the plan an unnecessary escalation. “The FBI remains committed to cooperating with the Committee in good faith. In a letter to Chairman Comer earlier today, the FBI committed to providing access to information responsive to the Committee’s subpoena in a format and setting that maintains confidentiality and protects important security interests and the integrity of FBI investigations,” the agency said. “Any discussion of escalation under these circumstances is unnecessary.” The committee would have to approve such a measure, which would then go to the full House for a vote. But the move would likely result in little more than a formal admonishment. It’s up to the Department of Justice whether to take the referral from Congress regarding prosecution, meaning Attorney General Merrick Garland is responsible for determining whether to take aim at a top law enforcement official. Though Comer cast Wray’s response as a refusal, a Tuesday letter from the FBI to the chairman obtained by The Hill, the bureau said it has “identified additional information that we are prepared to offer the committee as an extraordinary accommodation.” It’s unclear what that information might be. Comer 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.” But the letter from the bureau, signed by Acting Assistant Director Christopher Dunham, stressed that the form relays an unverified tip.

McCarthy Threatens To Hold FBI Director In Contempt Over Stonewalled Biden Evidence - House Speaker Kevin McCarthy (R-CA) on Tuesday threatened to hold FBI Director Christopher Wray in contempt if the agency continues to shelter the Biden family from congressional investigators seeking key documents. Wray has until end of day Tuesday to produce several FD-1023 forms - records of interactions with confidential sources - from June 2020, which contain the word "Biden." The forms were requested by House Oversight Chairman James Comer (R-KY) after he issued a subpoena to compel the agency to produce the forms. "So let me not just tell you. Let me tell Director Christopher Wray, right here, right now: If he misses the deadline today, I am prepared to move contempt charges in Congress against him," McCarthy told Fox News on Tuesday.More via the Epoch Times;In a May 3 letter, House Oversight and Accountability Committee Chairman James Comer (R-Ky.) and Sen. Chuck Grassley (R-Iowa) revealed that they received “highly credible unclassified whistleblower disclosures” that the FBI possessed an unclassified record that “describes an alleged criminal scheme involving then-vice president Joe Biden and a foreign national relating to the exchange of money for policy decisions.”The specifics of these allegations are unclear since, despite repeated requests to hand over the document, the FBI has refused to share it on several occasions.

McCarthy says he’ll move contempt charges against FBI director if subpoena deadline is missed - Speaker Kevin McCarthy (R-Calif.) on Tuesday warned he would move contempt charges against FBI Director Christopher Wray if he does not produce a subpoenaed document by that day’s deadline. House Oversight Chairman James Comer (R-Ky.) issued a subpoena earlier this month to compel Wray to produce any FD-1023 forms — records of interactions with confidential sources — from June 2020 that contain the word “Biden.” Comer alleged, without providing details, the form he requested 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.” “So let me not just tell you. Let me tell Director Christopher Wray, right here, right now: If he misses the deadline today, I am prepared to move contempt charges in Congress against him,” McCarthy said Tuesday on Fox News. In a letter sent to Wray on May 24, Comer expressed frustration at the FBI’s inability to accommodate the committee’s request and threatened to bring contempt charges if the subpoena deadline of May 30 was not met. “Instead of working with the Committee, the FBI has refused to even acknowledge whether the FD-1023 form exists. And the agency has made no attempts to engage in a reasonable accommodation process,” Comer wrote in his May 24 letter. “The FBI’s refusal to produce this single document is obstructionist.” McCarthy’s pledge to bring contempt charges gives weight to Comer’s threat. He said he personally called Wray to tell him to produce the document. “Comer subpoenaed the document that he has requested. We have jurisdiction over the FBI, which they seem to act like we do not. I personally called Director Wray and told him: He needs to send that document. Today is the deadline,” McCarthy said on Fox News.

Comer says Wray confirmed existence of record reporting alleged Biden bribery scheme, which the White House strongly refutes - GOP Rep. James Comer of Kentucky, the chairman of the House Oversight and Accountability Committee, said in a statement Wednesday that FBI Director Christopher Wray confirmed "the existence of an unclassified record that contains reporting of an alleged bribery scheme related to then-Vice President Joe Biden and a foreign national." Comer believes the FBI record contains "a precise description of how the alleged criminal scheme was employed as well as its purpose," he and Senate Judiciary Ranking Member Chuck Grassley said in a letter to Wray and Attorney General Merrick Garland in early May. The GOP lawmakers also said at the time, they believed the form "describes an alleged criminal scheme involving then-Vice President Biden and a foreign national relating to the exchange of money for policy decisions."While Comer and Grassley said in Wednesday's statement that the record includes "very serious and detailed allegations implicating the current President of the United States," they did not provide further evidence to support the claim. Ian Sams, the White House spokesperson for oversight and investigations, said: "This silly charade by Chairman Comer is yet another reminder that his so-called 'investigations' are political stunts not meant to get information but to spread thin innuendo and falsehoods to attack the President. He has already admitted this isn't about uncovering facts but about trying to hurt the President's poll numbers, so the only question left is how long he will waste time, energy, and taxpayer dollars to support a fact-free politically-motivated goose chase simply to get media attention and the Fox News spotlight." According to Comer, Wray offered in a phone call Wednesday to allow lawmakers to view it at FBI headquarters. Comer issued the subpoena earlier this month after a whistleblower had provided GOP lawmakers with information about an alleged bribery scheme involving Mr. Biden. "Today, FBI Director Wray confirmed the existence of the FD-1023 form alleging then-Vice President Biden engaged in a criminal bribery scheme with a foreign national," Comer said in his statement.

FBI director Chris Wray to face contempt of Congress vote, Comer says - The Republican chairman of the House Oversight and Accountability Committee said he will seek to hold FBI director Christopher A. Wray in contempt of Congress, rejecting Wray’s offer to allow lawmakers to view an internal bureau document in a secure location instead of handing the document to the committee in response to a subpoena. Wray spoke by phone Wednesday with Chairman James Comer (R-Ky.) about the committee’s demand for a form submitted by a confidential informant containing unsubstantiated allegations about President Biden and his family. Wray also spoke in a separate call with ranking minority member Jamie B. Raskin (D-Md.). FBI officials told Comer this week that Justice Department policy prevents them from giving the document to the committee because it could compromise a confidential source and dissuade others from bringing sensitive information to law enforcement agencies in the future. Wray said he could make a redacted version of the form available for review, but the lawmaker was not satisfied. “We have been clear that anything short of producing these documents to the House Oversight Committee is not in compliance with the subpoena,” Comer said in a statement. “If the FBI fails to hand over the FD-1023 form as required by the subpoena, the House Oversight Committee will begin contempt of Congress proceedings.” The FBI issued a statement as well, saying that Wray gave Comer “an opportunity to review information responsive to the subpoena in a secure manner to accommodate the committee, while protecting the confidentiality and safety of sources and important investigative sensitivities. … The FBI remains committed to cooperating with the Committee in good faith.” A contempt vote would be the most significant confrontation between House Republicans and federal law enforcement since Republicans took control of Congress in January. Comer and other GOP lawmakers, including Judiciary Committee Chairman Jim Jordan (R-Ohio), have accused the FBI and the Justice Department of being biased against conservatives and failing to properly investigate allegations against Biden and his relatives. At the same time, however, Comer has struggled to present substantive findings in his investigation. Comer has raised questions about business dealings between foreign entities and Hunter Biden when his father was vice president. But Comer has presented no evidence of illegal activity or any direct link to the elder Biden. The showdown with Wray is over an FD-1023 form, used to record information from a person the FBI considers to be a “confidential human source.” In this case, Comer said, the form included allegations that as vice president, Biden received money from a foreign national in exchange for favorable policy decisions.

"Safe Harbor": New Evidence Offers Insight Into Hunter Biden & His Collapsing World Of Corruption - In 2018, Hunter Biden’s world was collapsing.The New York Times had run a story on one of his shady deals with the Chinese and his father, then vice president, was pulled into the vortex.It appears that Hunter was in a free fall and his uncle Jim Biden reached out in newly discovered messages to offer him a “safe harbor.”The exchange is an insight into a train wreck of a life of the scion of one of the most powerful families in the country.However, it is also insight into a world of influence peddling where millions simply evaporated in the coffers of the Biden family.On their face, the messages seem to contradict public statements from President Biden on the foreign-influence peddling that used to fund Hunter’s drug-infused, self-destructive lifestyle.The Times story caused a panic in the Biden family.Despite a largely supportive media, the Bidens have long been known for influence peddling.Jim Biden has been repeatedly criticized for marketing his access to his brother in pitches to clients.Hunter knew that the Times story was only the tip of an iceberg.There were deals all over the world with foreign figures worth millions and some of these figures had close ties to foreign intelligence or regimes. As revealed recently by the House Oversight Committee, the Bidens constructed a labyrinth of corporations and accounts to transfer millions from these deals to a variety of Biden family members, including grandchildren.Nevertheless, Joe Biden repeatedly claimed as a presidential candidate and as president that he had no knowledge of any foreign dealings of his son.Those denials now appear patently false.The laptop includes pictures and appointments of Hunter’s foreign business associates with Joe Biden.It also includes a recording concerning a Times report on Dec. 12, 2018, detailing Hunter’s dealings with Ye Jianming, the head of CEFC China Energy Company.

Trump moves to disqualify judge in porn star hush money case (Reuters) - Former President Donald Trump is seeking to disqualify the New York state judge overseeing the criminal case against him stemming from a hush money payment to a porn star. In a motion made public on Friday, Trump's lawyers argued that New York state Justice Juan Merchan in Manhattan has a conflict due to his daughter's work at a consulting firm that does work for Democrats. The motion also noted that the judge encouraged a former Trump Organization executive to cooperate during a prior case, calling that a preconceived bias against Trump. Trump's lawyers also asked the judge to explain $35 in political contributions in 2020. Federal records show Merchan donated $35 to the Democratic group ActBlue, with the money earmarked for the Biden campaign and two progressive groups. "Your Honor cannot preside over this case," Trump's lawyers wrote in the filing, given the questions about his impartiality. The motion is Trump's latest legal maneuver to keep Merchan from overseeing the case. Last month, Trump asked for the case to be moved to federal court. It is proceeding in state court ahead of a decision. Trump may face an uphill climb in getting Merchan disqualified, as the judge himself gets to make the decision. The Trump Organization was not successful in getting him to step aside in the tax-fraud case. But New York's rules of judicial conduct bar political contributions. Robert Tembeckjian, administrator of the state Commission on Judicial Conduct, declined to comment on whether , the judge's apparent $35 in donations could be subject to an inquiry.

Epstein Pal Jes Staley Throws Jamie Dimon Under The Bus, Setting Stage For Massive Legal Battle - Former JPMorgan Chase executive Jes Staley has thrown CEO Jamie Dimon under the bus over the bank's relationship with Jeffrey Epstein - claiming in legal documents that he and Dimon communicated about the convicted sex offender. Dimon maintains he had no such conversations, the Wall Street Journal reports, while Staley claims he knew about Epstein's sex trafficking operation and that he regrets his friendship with Epstein.According to the filing, Staley says that he and Dimon communicated when Epstein was arrested in 2006 and 2008 when Epstein pleaded guilty to soliciting and procuring a minor for prostitution, and served 13 months in a work-release program. Staley also claims that Dimon communicated with him several times through 2012 about whether to maintain Epstein as a client. "There is no evidence that any such communications ever occurred—nothing in the voluminous number of documents reviewed and nothing in the nearly dozen depositions taken, including that of our own CEO," said a spokeswoman for JPMorgan, adding that Dimon doesn't believe such conversations with Staley ever happened. "The one person who claims this to be true is currently accused of horrific acts and dishonesty."The statements arose as part of a pair of lawsuits against the bank in a federal court in Manhattan. The government of the U.S. Virgin Islands and an unnamed woman, who said she was abused by Epstein, sued JPMorgan last year, claiming that the bank facilitated Epstein’s alleged sex trafficking. The bank has sought to pin the bulk of the relationship on Staley and sued him claiming he misled executives about Epstein. The bank in its lawsuit identified Staley as the “powerful financial executive” accused of sexual assault by the woman who is suing JPMorgan. Staley’s lawyers have said the allegations against him are baseless. –WSJ "Rather than mislead anyone about what was or was not said, why don’t they just agree to release the whole transcript?" said an Epstein accuser's attorney, Brad Edwards, referring to Dimon's deposition.

Ex-Wells Fargo executive agrees to $4.9 million settlement with SEC --Carrie Tolstedt, a former senior Wells Fargo executive who faces the prospect of prison time in connection with the bank's phony-accounts scandal, has reached a $4.9 million settlement with the Securities and Exchange Commission. The deal with the SEC, which comes nearly seven years after Tolstedt left Wells Fargo, is the latest in a series of moves aimed at resolving her long-running legal woes. In March, federal prosecutors announced that Tolstedt had agreed to plead guilty to a criminal charge of obstructing a bank examination under a deal that called for a prison sentence of up to 16 months. A separate settlement agreement with the Office of the Comptroller of the Currency called for Tolstedt to pay a $17 million fine and accept a ban from the banking industry. On Tuesday, the SEC touted its settlement with Tolstedt as an example of an enforcement case that targeted individual executives, rather than just the corporations that employed them. "Companies do not act on their own," Monique Walker, regional director of the SEC's regional office in San Francisco, said in a press release. "Where the facts warrant it, we will hold senior executives accountable for conduct that violates the securities laws." Tolstedt's lawyer, Enu Mainigi, did not respond to a request for comment. Before Tolstedt's guilty plea in the criminal case, Mainigi had said that her client acted appropriately, transparently and in good faith at all times. Tolstedt is scheduled to be sentenced in September. In March, the SEC revealed in a court filing that it had reached a tentative settlement with Tolstedt, but details of the agreement did not become public until Tuesday. The settlement has yet to be approved by a judge, and Tolstedt did not admit or deny wrongdoing. Tolstedt agreed to pay a $3 million civil penalty, plus disgorgement of $1.46 million and prejudgment interest of just under $450,000. She also consented to a permanent ban from serving as an officer or director at publicly traded companies. Tolstedt, the longtime head of retail banking at Wells Fargo, was a key architect of the San Francisco bank's aggressive sales culture, widely seen as a major culprit for the phony-accounts scandal. Tolstedt frequently trumpeted the bank's cross-sell ratio, which rose for years, and which Wells Fargo touted to Wall Street as evidence of its sales prowess.

Warren's executive compensation clawback bill gains bipartisan support — Sen. Elizabeth Warren, D-Mass., has pulled in more bipartisan support for a bill that would strengthen the ability of the Federal Deposit Insurance Corp. to claw back the compensation of the executives of failed banks. Warren, along with banking lawmakers Sens. J.D. Vance, R-Ohio, Bob Menendez, D-N.J., Katie Britt, R-Ala., Mark Warner, D-Va., Kevin Cramer, R-N.D., Chris Van Hollen, D-Md., Tina Smith, D-Minn., Raphael Warnock, D-Ga., and John Fetterman, D-Pa., updated a version of a bill introduced in late March by Warren and Sens. Catherine Cortez Masto, D-Nev., Josh Hawley, R-Mo., and Mike Braun, R-Ind. The bill would require federal regulators to take back up to three years of compensation received by the executives and other key decision-makers of failed banks. While the FDIC already has some authority to claw back this compensation, the bill would expand that power, including by extending the authority in Dodd-Frank to apply to any bank entered into FDIC receivership, not just those resolved under the FDIC's Liquidation Authority. "Nearly three months after the collapse of Silicon Valley Bank, a bipartisan group of Senators is demonstrating a serious commitment to pass legislation requiring financial regulators to claw back pay from executives when they implode their bank," Warren said in a statement. "Congress must answer the President's call for stronger laws to hold failed bank executives accountable, and I'm determined to work with lawmakers on both sides of the aisle in the Senate Banking, Housing, and Urban Affairs Committee to deliver change."The issue of executive compensation is one of the few bills that enjoy bipartisan agreement after the failures of Silicon Valley Bank, Signature Bank and First Republic."The executives responsible for running their banks into the ground are sitting on millions of dollars in compensation and bonuses. Meanwhile, the American people are bearing the financial burden for their excessive risk taking and gross mismanagement," Vance said in a statement. "This legislation would right that wrong and ensure that failed bank executives are held accountable for the collapse of their institutions – not the American taxpayer." But while there's bipartisan support for the bill on the Senate side, it's less clear that Republican lawmakers in the GOP-controlled House will pick up the issue. At a House hearing with the executives of the trio of failed banks, Republican lawmakers appeared more interested in advancing bills aimed at stricter oversight of the Federal Reserve.

Fed's Jefferson: Basel III endgame will bring 'more robust' capital requirements -The final implementation of the Basel III regulatory framework will bring "more robust" and more standardized capital requirements to the largest banks, Federal Reserve Gov. Philip Jefferson said in a speech Wednesday.Speaking virtually at a conference on financial stability, Jefferson said the implementation of the so-called Basel III endgame will improve resilience in the banking system and "reduce unwarranted variabilities" in the current capital framework. "By increasing standardization, these reforms aim to increase transparency and public confidence in risk-weighted assets while also reducing complexity," he said, adding that the final proposal from the Fed, Federal Deposit Insurance Corp. and Office of the Comptroller of the Currency will be released for public comment "soon."Jefferson also noted that Fed staffers are working on ways to enhance stress testing on the largest banks to capture a wider range of risks and vulnerabilities.The speech, delivered at the International Conference on Policy Challenges for the Financial Sector in Washington, D.C., included Jefferson's first public remarks on financial stability, regulation and supervision since being confirmed to the Fed Board of Governors last summer.The foray into supervision comes as Jefferson prepares to take on a bigger role on the Board of Governors. Earlier this month, President Joe Biden nominated him to be the board's next vice chair. The seat has been vacant since then-Vice Chair Lael Brainard left the central bank to lead the White House National Economic Council in February.Jefferson's appointment to the Fed's second-in-command post will require Senate approval. He was confirmed to the board by a vote of 91-7 last year.During his speech Wednesday, Jefferson said the banking sector is on firm footing despite failures of three large banks earlier this spring. Unlike the last period of banking distress, following the subprime mortgage crisis, he said the fundamentals of the sector are strong and the spillovers from the failures of Silicon Valley Bank, Signature Bank and First Republic Bank were relatively well-contained.Still, he said, the Fed is paying close attention to liquidity and interest rate risk management in the banking sector, with both presenting significant stability risks. Top concerns include reliance on uninsured deposits and exposure to duration risk on securities investments.

4Q overdraft revenue fell 50% in three years, CFPB says --Bank overdraft revenue fell nearly 50% in the fourth quarter compared with three years earlier, according to new Consumer Financial Protection Bureau data. Banks reported $1.6 billion of overdraft revenue in the final three months of 2022, which was down 48% from the fourth quarter of 2019, the CFPB said, citing bank call report data. For the full year, banks reported $7.7 billion in overdraft and nonsufficient-funds fees, a 35% drop from 2019. The decline is notable given that the eight largest banks reported a combined $11 billion to $12 billion of annual revenue from such fees for each of the five years from 2015 to 2019. Financial institutions have dramatically cut overdraft fees in the past few years after many years of public pressure. Consumers saved a significant amount of money in the process. Many households saved more than $150 a year in 2022 compared with 2019 due to the reductions in overdraft and nonsufficient-funds fees, the CFPB said. Rohit Chopra, the agency's director, announced a crackdown on overdraft fees in 2021. Yet, many point to Bank of America's decision in early 2022 to slash overdraft fees from $35 to $10 for having a ripple effect across the industry, pressuring other banks to follow suit. The CFPB notably found that banks have not increased other fees to make up for the lost overdraft revenue. Account maintenance and ATM fees remained flat from 2019 to 2022, the bureau said. "There is no clear correlation between decreases in overdraft/NSF and increases in other listed fee revenue," the CFPB said. "We will continue to track overdraft/NSF fees and are considering rulemaking activities related to these fees."

Banks standing strong, but CRE, interest rate risks loom: FDIC — The Federal Deposit Insurance Corp. said the banking industry remains resilient amid a string of bank failures this spring, but a difficult interest rate environment, slower growth and potential losses in commercial real estate investments mean the industry is not yet out of the woods. FDIC Chair Martin J. Gruenberg said the banking industry's metrics showed resilience, with high net income, favorable asset quality metrics and strong capitalization. However, he noted the full impact of the industry's recent upheaval may not be evident until next quarter. "The industry's quarterly results do not yet fully reflect the stress that began in early March," he said. "Rising market interest rates, slower economic growth and geopolitical uncertainty…[could] weaken credit quality and profitability and could result in further tightening of underwriting, slower growth and higher provision expenses." In the first quarter, the banking industry reported net income of $79.8 billion, an increase of $11.5 billion from the previous quarter. According to Gruenberg, March's bank failures were largely responsible for that increase. "Strong growth in noninterest income, reflecting the accounting treatment of the acquisition of two failed institutions and record high trading revenue of large banks outpaced the lower net interest income and higher noninterest expense," he said. "Industry net income would have been roughly flat quarter-over-quarter without the accounting impact of the two failed bank acquisitions." Despite higher income, it appears consumer faith in the banking system was shaken by recent stress and may be slower to recover. Banks saw a decline in total deposits for the fourth consecutive quarter, although the agency said deposit outflows have moderated since March.

Fed Engages In Shocking Seasonal Adjustments To Convert $28BN Bank Deposit Outflow Into $102BN Inflow. - The Fed reports that domestic (large and small) commercial banks saw NSA flows of -$28.4 billion, while SA flows were +$102.5 billion! As if it needs to be said, non-seasonally-adjusted deposit flows are 'actual flows'? And why do we care about 'seasonally-adjusted' deposits - they aren't real assets? For some more context, the deposit delta (between real outflows and SA outflows) since March 1 is now $150BN+ It seems The Fed is using the 'fog of banking crisis war' - knowing this data drops late on a Friday night - to pull the wool over depositors and investors eyes. Following yesterday's ugly money-market fund (accelerating inflows) and Fed balance sheet (another jump to a record usage of the Fed's Bank Term Funding Program emergency bailout cash), expectations are that bank deposits continued to leave US commercial banks (despite last week's unexpected rise in deposits and loans by small bank to real estate borrowers - hhmm). Regional bank shares have risen for three straight weeks - but the context for where they are is key... And if you wondered what's driving that - take a look at bank exec's insider buying (hint). And if everything's so awesome, why are banks still using The Fed's emergency bank bailout facilities so much? And so, according to the latest H8 report from The Fed, on a seasonally-adjusted basis, total US Commercial Bank deposits (including large time deposits) increased by $86.5 billion during the week ended 5/24... That is the biggest (seasonally adjusted) weekly inflow since June 2021 (and $116 billion of deposit inflows in 2 weeks). One can't help but wonder if this giant surge is 'seasonal-only' given the timing of the prior jump. And this inflow occurred as money-market fund inflows hit a new record high (note that deposit data is one-week lagged to MM flows). So where is all this 'cash' coming from.. Under the hood, Large Banks saw a massive $85.6 billion seasonally-adjusted inflow (biggest weekly inflow since May 2020) as Foreign Banks saw outflows (-$159 billion) which were offset by $16.9 billion in inflows to Small Banks... So - money flowed into bank deposits, money-market funds, and tech stocks... Sure! On a non-seasonally-adjusted basis, all bank cohorts saw OUTFLOWS Graphs Source: Bloomberg Here's the direct comparison of real NSA flows and 'fake' SA flows...

BankThink: There are far too many unanswered questions about SVB's failure | American Banker - After the failures of Silicon Valley Bank and Signature Bank, which prompted a mini crisis in banking, the relevant federal regulators at the Federal Reserve and Federal Deposit Insurance Corp. testified and produced reports looking at what went wrong. However, the limited and potentially self-serving nature of these efforts has not gone unnoticed. Members of Congress have openly questioned their validity, and a bipartisan group of senators is now calling on President Biden for an independent investigation. Experts have questioned arguments that a lack of authority contributed to the regulatory failures and have also called for an independent investigation. Even a member of the Federal Reserve Board, Gov. Michelle Bowman, has called for an independent inquiry given that the Fed's report was apparently only reviewed by Vice Chair for Supervision Michael Barr, not the entire board, before its release. Such independent review is essential not only to restore trust in the American banking system, but to maintain trust in key functions of American government. American banking regulators are uniquely insulated from democratic accountability because they do not rely on Congress for funding and are granted broad legal and regulatory discretion. This makes it all the more important that Congress and the American people get an independent and unvarnished understanding of what happened leading up to the failure of SVB, how the agencies (along with the Treasury and White House) determined what steps to take, who contributed or was excluded from those discussions, and how the decisions were implemented. In managing the situation, the government abandoned most of the relevant strictures placed on it by the Dodd-Frank Act, claiming that the bank failures posed a systemic risk to the economy. The government views its invocation of the systemic risk exception, which it justified as necessary to stop a broader contagion, as a conclusive end to the debate over whether troubled regional banks pose such risks. But what if invoking this exception was unnecessary, used cynically to accomplish other objectives — such as backstopping the uninsured deposits of the politically powerful — or was the product of incompetence rather than necessity? These questions matter. Supporters of the agencies' response have pointed out that invoking the systemic risk exception was unanimous at the FDIC and Fed, and therefore couldn't have been a partisan or political decision. Before we put stock in that argument, we need to know what information was available to, or withheld from, members of those agencies, and whether better choices could have been made before it got to that point. History is replete with examples of people feeling forced into a bad choice only to regret it when more facts came to light. Likewise, how the FDIC handled the lead-up to and resolution of SVB's failure has implications far beyond one bank. There are reports that the largest banks — those most able to assume SVB's liabilities with minimal disruption — were put at a disadvantage by the FDIC in bidding for it, if not outright prevented. If true, this could conceivably have prevented SVB from being resolved gracefully at an earlier stage. It's worth asking how much of the resulting panic was a product of SVB's failure, and how much was because of the perceived chaotic resolution. Did depositors at other banks run to "too big to fail" banks because they thought theirs might fail? Or because, after seeing the FDIC flounder with SVB, they thought a failure would have been similarly chaotic and put them at greater risk than had SVB simply been sold to a large bank?

Bank failures' ripple effects - American Banker editorial - One of the irrefutable laws of physics is that for every reaction, there is an equal and opposite reaction. That same principle could easily be applied to the banking sector. Every time there is a blip, a crisis, a string of failures, key stakeholders rush to analyze, pick apart, determine what happened and why and how to contain the damage. Take this story's artwork. It features a picture of depositors crowded outside the American Union Bank in New York after the institution failed on June 30, 1931. During the Great Depression, roughly 9,000 banks failed. In response, the Federal Deposit Insurance Corp. was created and deposit insurance has been offered since 1934 to shore up Americans' trust in the banking system. That image is juxtapositioned against a picture of depositors lined up outside of Silicon Valley Bank a few days after the Santa Clara, California-based bank failed. A second large regional, Signature Bank, was also taken over by regulators in March. That was followed by First Republic's collapse in early May.The industry is just starting to grapple with the fallout from this most recent crisis, and executives should brace for far-reaching consequences. Given the events earlier this year, the American Banker staff has made 10 predictions about how the banking sector will be permanently altered. (use CTRL-A, CTRL-C before scrolling)

BankThink: Either regulate Big Tech's entry into finance now, or regret it later | American Banker --After the collapse of Silicon Valley Bank, the public discourse has been brimming with hindsight advice on what regulators and lawmakers have missed. Yet nobody is talking about a major trend that is injecting future risk into the financial system: Big Tech's entry into banking. Dangers are growing exponentially with the rise of decentralized finance (DeFi), but defining what tech titans should be allowed to do is tricky.Over the last years tech giants have been racing toward financial services. Apple, Alphabet (Google's parent company), Amazon and Meta (Facebook's parent company) have all leaped into the payments market. Some partner with licensed banks to offer credit, while Amazon has even entered the corporate lending business. In perhaps the most ambitious initiative yet, Facebook led a group of corporations that attempted to issue a global super-currency far away from the reach of central banks. And though it eventually failed, there are already new plans to run money in the metaverse.If you wonder how deep Big Tech can get into banking look to China. WeChat Pay and Alipay have long since dethroned credit card schemes and other incumbents. Alibaba's interest-bearing micro-savings tool Yu'e Bao became the world's largest money market fund in 2019. Tencent runs a licensed virtual bank together with traditional finance players. Examples abound.Most of these forays went hand in hand with crucial innovation such as mobile payments or the proliferation of open banking. They slashed costs for consumers, boosted financial inclusion and enhanced usability. Yet these advances are also fraught with dangers.Data privacy is a big one. Monopolistic tendencies are another. These are issues hotly debated by politicians across the globe, but what often goes unnoticed is the systemic risk Big Tech's entry injects into the financial system.The International Monetary Fund, the Financial Stability Board and the Bank for International Settlements have all warned of the ensuing cross-sectoral, cross-border risks. Laws are not yet ready to let tech tycoons control the arteries of the global economy. And as the age of decentralized finance unfurls, the dangers are put under a magnifying glass.While projects such as Apple or Google Pay were confined to one layer, the triumphal march of blockchain technology and digital assets lets Big Tech compete on the level of assets, settlements, gateways and applications. Facebook's aforementioned digital currency, called Libra, is a case in point. Had it been successful, Facebook would have had a say in the issuance of the asset, the blockchain on which settlement occurred and the wallet by which users manage their money.Digital assets are no isolated space anymore. Increasingly, real-life assets are merging with on-chain ones. This interconnectedness means that contagion can easily spread from the unregulated DeFi space to the traditional financial system.

Fed, California agency issue enforcement against Silvergate, will monitor wind-down -The Federal Reserve Board and California Department of Financial Protection and Innovation are keeping close tabs on Silvergate Bank as it unwinds its business operations.In a joint enforcement action, the Fed and DFPI issued a consent order last week requiring the La Jolla, Calif.-based bank to share a self-liquidation plan with both state and federal regulators within 10 days. It also forbade the bank from destroying records and noted that bank officials must cooperate fully with an ongoing investigation into Silvergate's relationship with the failed crypto exchange FTX.Consent orders from the Fed function like legal settlements. Institutions agree to a set of conditions and waive their right to challenge them. The document was made public Thursday morning.As part of the order, Silvergate agreed to make good on its promise to ensure all of its depositors are made whole. It also agreed not to expand its business activities during its wind-down, pay dividends, repurchase stock or make payments on subordinated debt without written approval from its supervisors.Silvergate is also barred from using cash assets to make any unplanned executive compensation payments or severance payouts without regulators' approval. Similarly, any employee promotion during the wind-down period will need to be approved by supervisors as well. Limits will also be placed on "golden parachute" payments.The bank is also prohibited from taking on brokered deposits to fund its operations. As part of the agreement, Silvergate will provide quarterly written progress reports to supervisors on the execution of its liquidation plan, including its monetization of loans and securities and its recovery of other assets.The order also requires Silvergate to provide "substantial assistance" to the Fed and the California Department of Financial Protection and Innovation in their ongoing investigation into the bank's dealings with FTX. This includes making "present or former officers, directors, employees, agents, and consultants" available for interviews or testimony. The bank must also identify witnesses with "material information" about the matters under investigation.The order does not disclose the scope of the investigation, but the FTX organization and its leaders face a battery of charges including fraud, conspiracy and bribery. Before its collapse, FTX was the second-largest crypto exchange in the world.Prior to its voluntary liquidation in March, Silvergate's business model centered on providing banking services to crypto currency firms. Its Silvergate Exchange Network served as a near-real-time payment network for corporate customers to trade digital assets and convert holdings into U.S. dollars. Late last year, Silvergate experienced a $8.1 billion run on deposits following the collapse of FTX. The bank stayed afloat by accessing emerging funding through the Federal Home Loan Bank system, but ultimately chose to shut down on March 8. At the time it said it would be able to self-liquidate and return all deposits without dipping into the Federal Deposit Insurance Fund. Silvergate's decision to shut down coincided with — and ultimately upended — an attempted capital raise by Santa Clara-based Silicon Valley Bank, which was dealing with liquidity issuesstemming from unhedged interest rate risk exposures and a persistent outflow of deposits. Silicon Valley Bank experienced a run of its own and failed two days later. The episode set off acrisis in the banking sector that included the failures of two more large regional banks.

Former Coinbase manager, brother agree to settle SEC insider trading charges (Reuters) - A former product manager for Coinbase Global Inc (COIN.O) and his brother have agreed to settle U.S. Securities and Exchange Commission (SEC) charges related to insider trading of crypto asset securities. The SEC said Ishan Wahi and his brother, Nikhil Wahi, agreed to settle civil charges that they engaged in a scheme to trade ahead of multiple announcements regarding at least nine crypto asset securities that would be made available on Coinbase's platform, the regulator said in a statement. "While the technologies at issue in this case may be new, the conduct is not," said SEC's enforcement director Gurbir Grewal. A lawyer for Ishan Wahi declined to comment on the settlement. He previously pleaded guilty to related criminal charges that he tipped off his brother Nikhil and a friend with confidential information about digital assets that would be listed on Coinbase, one of the world's largest crypto exchanges. Ishan Wahi was sentenced to two years in prison earlier this month. In January, Nikhil Wahi was sentenced to 10 months in prison. His lawyer did not respond immediately to request for comment. Both brothers agreed they would not deny the SEC's allegations. Neither received a penalty and the disgorgement order by the SEC was deemed covered by the related criminal proceedings. The case has drawn significant attention as the SEC has grown increasingly active in policing the crypto industry. The regulator has argued in lawsuits, including the one it filed against the Wahi brothers, that many digital assets are securities that fall under its oversight.

Bankman-Fried prepares to blame a law firm for FTX's fraud --FTX co-founder Sam Bankman-Fried is laying the groundwork for a defense that argues he relied upon the advice of a prominent Silicon Valley law firm in taking many of the actions for which he is now facing fraud charges.Bankman-Fried’s defense lawyers on Tuesday asked the judge overseeing his criminal case to force prosecutors to hand over documents given to the government by former FTX law firm Fenwick & West. If the government doesn’t agree, Bankman-Fried wants permission to subpoena the Mountain View, California-based firm.That advice included the use of encrypted messaging apps, the provision of multimillion-dollar loans to FTX executives and the cryptocurrency exchange’s compliance with US banking regulations, the defense said. Those are all key elements of the charges against Bankman-Fried, who’s accused of orchestrating and concealing a yearslong fraud in which he used billions of dollars in FTX customer funds for risky investments, personal expenses and political donations.The legal advice Fenwick & West provided to FTX and Bankman-Fried between 2017 and 2022 is “material to preparing a defense,” his lawyers said in their Tuesday filing.Bankman-Fried has pleaded not guilty to his 13-count indictment and is due to stand trial in October.A so-called advice-of-counsel defense can be used to rebut suggestions a criminal defendant intended to break the law, New York University law Professor Stephen Gillers said.“In other words, the defendant’s argument is ‘my lawyers told me it was legal, and I thought it was legal,’” said Gillers. That would cut against the government’s contention that the defendant knowingly acted illegally — a necessary element of many criminal charges, including those against Bankman-Fried.Such a defense would place further scrutiny on the relationship between FTX and Fenwick & West. The firm started representing Alameda Research, the exchange’s hedge fund affiliate and, according to prosecutors, the conduit for much of Bankman-Fried’s fraud, in 2017 and became the main outside counsel to FTX after its 2019 founding.

Washington Ignored Crypto for Now. That's Good for Bitcoin. So, there was a deal resolving the U.S. debt ceiling battle in Washington, D.C. Now what? First, let’s look at where we are. The words “crypto” and “cryptocurrencies” don’t appear at all in the initial version of the deal. I wrestle with whether that’s good or bad. The Digital Asset Mining Energy (DAME) excise tax wasn’t included, so I’ve landed on the former since the omission is positive for the industry. The proposal would’ve levied a 30% tax on any firm using computing resources to mine digital assets. The premise was driven by concerns about the consumption of fossil fuels in mining, and subsequent environmental harm. Ironically, the debt ceiling agreement may be viewed as a win for fossil-fuel advocates. It includes a provision for the expedited completion of a natural-gas pipeline between West Virginia and Virginia (the Mountain Valley Pipeline). That is expected to transmit natural gas from the Marcellus and Utica shale gas fields to markets in the Mid- and South Atlantic regions of the U.S. At first glance, this provision may actually be a positive for bitcoin (BTC) miners. Since some of them use excess natural gas as an energy source, several have previously set up operations near the Marcellus and Utica Shales to accomplish this. Increased infrastructure for natural gas may lead to increased production, and thus increased excess gas, resulting in increased sources of energy for miners in the region. I would label this as an indirect benefit, and definitely one that was unintentional. Indirect benefits notwithstanding, bitcoin reacted favorably to the agreement, with prices increasing 4% on Sunday. The move higher seems related more to increased certainty, and at least a sigh of relief that nothing antagonistic towards crypto was included.

US Senators Still Think Bitcoin Adoption in El Salvador Could Pose a Threat - While El Salvador attracts more tourists, American lawmakers are still pushing for a risk report on whether the Bitcoin-friendly nation is a potential threat to the US. Last month, senators Jim Risch (R-Idaho) and Bob Menendez (D-N.J.), ranking member and chairman of the Senate Foreign Relations Committee, reintroduced a bipartisan bill asking for a State Department report on El Salvador’s adoption of Bitcoin and potential impacts on bilateral economic relations and law enforcement cooperation. The bill, the Accountability for Cryptocurrency in El Salvador (ACES) Act, was first introduced back in February last year by Risch, Menedez and Bill Cassidy (R-La.). “Given U.S. interest on prosperity and transparency in Central America, we must seek greater clarity on how the adoption of Bitcoin as legal tender may impact El Salvador’s financial and economic stability, as well as El Salvador’s capacity to effectively combat money laundering and illicit finances,” a Foreign Relations Committee blog post says. The lawmakers want an analysis of El Salvador’s adoption of Bitcoin as legal tender and “the risks for cybersecurity, economic stability, and democratic governance in El Salvador.”

Crypto: GOP House Financial Services & Ag Committee chairs propose regs - House Financial Services Committee Chair Patrick McHenry (R-N.C.) and House Agriculture Committee Chair Glenn Thompson (R-Penn.) have unveiled a draft discussion bill as a possible framework to regulate cryptocurrency. The Republican proposal serves as a first step for legislation to regulate crypto — and follows six months of meetings with Republican members and staffers on the direction for new rules, according to senior policy staffers on the Financial Services and Agriculture Committees familiar with the drafting of the legislation. No Democrats have been consulted for this first discussion draft. So far Republican committee leaders want to share the draft with other Republican members and then have conversations with House Financial Services ranking member Maxine Waters (D-Calif.) and other Democrats. Committee aids are hopeful that the concerns expressed by Democrats align with Republicans and are included in the draft. The US Treasury and other banking agencies, including the SEC and CFTC, have been briefed on the direction on big themes of the proposed regs but not any details. "This discussion draft is the first step toward delivering on Republicans’ commitment to develop clear rules of the road for the digital asset ecosystem," said McHenry. "Our goal is to strike the appropriate balance between consumer protection and encouraging responsible innovation." McHenry is also encouraging industry members to offer feedback on the legislation. Coinbase's chief policy officer, Faryar Shirzad, who had told Yahoo Finance there is no path to registering with the SEC, said in response to the new draft: "We welcome Congress taking steps to establish a clear federal regulatory framework for the regulation of crypto. We need to study the details of the proposal, but we agree with congressional leaders in both parties." The draft bill aims to create clarity around gaps between the rules of the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC). It also tries to direct what firms need to do need to register with the SEC and requires the SEC to write new rules that are customized to govern crypto. So far, the SEC hasn’t written specific rules for crypto; it has only stated that current securities laws apply to crypto. SEC Chair Gary Gensler has repeatedly asked crypto firms to register with the SEC and leveled more than a dozen enforcement actions against crypto firms for violating securities laws. The bill tries to clarify a long outstanding issue for the crypto community — what criteria would cause a crypto token to be classified as a commodity or as a security. It provides the CFTC with jurisdiction over digital commodities and clarifies the SEC’s jurisdiction over digital assets offered as part of an investment contract. The bill proposes a "decentralization" test to help decipher whether the token is a commodity, but that wouldn’t exclude it from necessarily becoming a security depending on how it’s used. The so-called decentralization test is about the blockchain network that the digital asset operates on. If the assets that run on the network are deemed as decentralized — meaning there's no central authority and no intermediaries — then they would be treated as a commodity. Digital asset issuers will need to demonstrate that their digital assets operate on a decentralized network and fulfill certain fit-for-purpose disclosure requirements. From there, the bill leaves much up to the CFTC and SEC to fill in definitions to offer more clarity for compliance with their rules.

House Republicans' crypto bill opens the door to more CFTC regulation — A new discussion draft of a bill by Republicans on the House Financial Services Committee and the House Agriculture Committee would give the Commodity Futures Trading Commission more authority in regulating cryptocurrency. The bill grants the CFTC jurisdiction over digital commodities, while the Securities and Exchange Commission would regulate digital assets offered as part of an investment contract. It's substantially more authority than the CFTC would likely have under a plan written by Democrats, and would constitute a major win for some Republicans who have long argued that many digital assets aren't securities and shouldn't be regulated as such. Under the rules laid out in the discussion draft, the SEC and the CFTC would have to complete rulemakings that further define digital commodities and securities when it comes to digital assets. The priority of the CFTC in regulating digital assets under Republicans' discussion draft would also be a blow to current SEC Chair Gary Gensler, whose agency has brought actions against exchanges and other crypto entities, accusing them of listing unregistered securities. This issue came to a head recently in a hearing at the House Financial Services Committee with Gensler. In one tense exchange, McHenry asked Gensler to classify Ether, the second largest cryptocurrency, as a security or a commodity. CFTC Chair Rostin Behnam had, in the past, contested that Ether should fall under the CFTC's purview. "Do you think it serves the market for an object to be viewed by the commodities regulators as a commodity and the securities regulator to be viewed as a security? Do you think that provides safety and soundness for the products?" McHenry said. "I think 'no' should be a very simple answer for you here." Gensler declined to answer, saying that the agency doesn't comment on specific cases.

BankThink - Skeptical about crypto? All the more reason to keep it in the U.S. | American Banker -- It's a decades-old truth that the American dollar dominates other global currencies. But while the United States has long commanded the traditional global financial market, we might be fumbling our chance to maintain control over the nascent digital assets space. When it comes to crypto, U.S. regulators have been anything but clear and consistent. And uncertainty over the U.S. regulatory landscape is prompting huge exchanges to consider moving their operations overseas. When asked by Politico about this risk, Securities and Exchange Commission Chairman Gary Gensler recently remarked that, "[w]e lose more if investors get harmed here." It's true that we stand to lose a lot if the U.S. allows our consumers to be harmed by fraudulent or irresponsible crypto institutions. But that is exactly why we should want them to stay stateside. While some crypto-skeptical policymakers welcome the idea of these institutions exiting the U.S., they're failing to see the bigger picture. Giving up our jurisdiction over this $800 billionindustry would not only harm American consumers, but it would also damage our geopolitical power in the process.Plenty of Democrats are skeptical of crypto, and for good reason. The industry has its share of bad actors and financial risks. But the fact remains that Americans will invest in digital assets no matter what politicians and regulators think of them, and these exchanges will retain their global influence regardless of where they're headquartered. Lawmakers and regulators don't have to like that reality to see there are good reasons to keep the industry under the federal government's watchful eye. Agencies like the SEC will protect American consumers far more effectively than any international regulatory body or foreign legal system. Much like our dollar dominance, the SEC enjoys confidence as a leading regulatory institution among Americans and international investors. It's better for American consumers to have the security of the SEC's oversight over digital-asset services than to hope that foreign regulators look out for our consumers.Less discussed, but maybe even more critical, is the national security risk we'd take on in pushing crypto markets overseas. Digital currencies offer an accessible, global financial market separate from traditional banks, and losing our regulatory influence over that market risks geopolitical consequences. Take our stake in the Russia-Ukraine war, for example. Shortly after Vladimir Putin ordered an invasion of Ukraine last year, the U.S. government imposed economic sanctions on Russia that included instructions for American cryptocurrency exchanges to block Russian users from handling currency through their services.While U.S.-based crypto exchanges abided by our sanctions, international exchanges likeBinance refused, continuing to serve Russian users and creating a potential loophole for Russian actors to finance war operations through their markets. Even if the SEC maintains its extraterritorial authority to regulate international businesses that impact Americans, its ability to actually execute that authority is limited by its resources. The agency has long been underfunded, and if these exchanges move overseas, it will have even less authority and ability to stop bad actors in the market.

PayPal, CFPB resume fight over digital wallets and prepaid card rule - PayPal Holdings and the Consumer Financial Protection Bureau have refiled legal claims in their ongoing court battle over disclosure requirements for digital wallets in the bureau's prepaid card rule. The CFPB and PayPal filed a round of legal arguments late last month with the U.S. District Court for the District of Columbia to resolve remaining claims stemming from a lawsuit PayPal filed in 2019. The case is now moving quickly with oral arguments expected on July 6 and a decision expected by year-end or early 2024, experts said. In February, a federal appeals court ruled in favor of the CFPB, finding that the bureau's prepaid card rule did not mandate specific fee disclosures for digital wallets. A three-judge panel of the U.S. Court of Appeals for the D.C. Circuit said the CFPB had complied with requirements of the Electronic Fund Transfer Act and remanded the remaining claims back to the district court. U.S. District Judge Robert J. Leon originally sided with PayPal in late 2021, claiming the Dodd-Frank Act did not grant the CFPB any additional statutory authority to issue mandatory disclosure clauses. PayPal, a multinational company with $25 billion in annual revenue based in San Jose, Calif., continues to challenge the CFPB on three issues. The payments giant claims that the prepaid card rule "imposes onerous and ill-fitting regulations" on providers of digital wallets and is therefore arbitrary and capricious, in violation of the Administrative Procedure Act. PayPal also alleges the CFPB failed to conduct a cost-benefit analysis as required by the Dodd-Frank Act to determine whether the costs of complying with the prepaid rule outweigh the benefits and impact on consumers. PayPal also claims the prepaid card rule's short-form disclosure requirements violate its First Amendment rights to free speech by forcing the company to make "misleading and inapplicable" disclosures to its consumers.

BankThink: The CFPB's late-fee proposal would harm the consumers it seeks to help - American Banker The Consumer Financial Protection Bureau recently proposed a rule that would dramatically lower the amount credit card issuers charge customers for late credit card payments. Although putatively pro-consumer, the proposed rule is ill-conceived and would actually increase overall costs for the large majority of credit card customers. The CFPB's proposal would overhaul regulations issued by the Federal Reserve a decade ago to implement the Credit Card Accountability Responsibility and Disclosure Act of 2009 (the "CARD Act"). The CARD Act requires that credit card late fees be "reasonable and proportional" and authorizes the agency to set a safe harbor for late fees that are presumed to be reasonable and proportional. The Fed's regulations set a safe harbor of $30 for a first late payment and $41 for subsequent violations within six billing cycles. The CFPB's proposal would replace this well-established framework with an $8 safe harbor for any late payment. The proposal would also cap late fees at 25% of the minimum payment and remove automatic inflation adjustments of the safe harbor. The CFPB proposal is part of the Biden administration's larger initiative against so-called "junk fees" and has superficial appeal. But we believe that the CFPB has not only gotten this wrong, but has done so at the expense of the same consumers that the agency is charged with protecting. If implemented, the rule would actually increase overall costs for the large majority of credit card customers, both those who pay on time and those who pay late. An $8 fee is not sufficient to deter late payments; as a result, delinquencies would meaningfully rise. As the CFPB itself anticipates, this would lead to consumers facing higher interest rates, higher maintenance fees, reduced rewards, and — for those who pay late more often — reduced credit lines and negative impacts to their credit scores. And it would leave riskier borrowers with less access to credit. All of this would make consumers worse off than the status quo. Credit card issuers incur substantial risk in lending to consumers on an unsecured basis and therefore take various measures to ensure timely payment. In addition to sending reminders and offering features such as automatic payments, issuers rely on late fees as an important risk-mitigation tool. Arbitrarily slashing late fees to $8 would undermine an important incentive for consumers to pay their bills on time. The CFPB itself acknowledges that the proposal risks harm to consumers for whom current late fee levels "serve as a valuable commitment device without which they would have a harder time responsibly managing their credit card debt." Tellingly, the CFPB asserts only that $8 will have some deterrent effect, but never attempts to show that this fee would have a sufficient deterrent effect. Common sense tells us that $8 is too small to act as a sufficient deterrent; it is less than the cost of many everyday purchases. An $8 fee represents only 0.5% of the $1,729 average credit card balance — small compared with late fees charged on other financial products. Studies have shown, and the CFPB accepts, that late fees have proven to be effective at deterring late payments. Evidence from a variety of contexts shows that there is a positive association between penalty size and its deterrent effect; for example, studies of traffic violations show that higher fines help reduce drunk driving, speeding and parking violations. Similarly, an economist, Sumit Agarwal, found in 2013 that, after incurring a late fee, a cardholder is 40% less likely to be delinquent on his or her next payment.

Comerica in 'serious violation' of Treasury's Direct Express program -- Comerica Bank officials privately acknowledged significant compliance failures in their operation of a Treasury Department program that provides federal benefits on prepaid cards to millions of unbanked Americans, according to internal documents obtained by American Banker. A Comerica executive said the Dallas bank faced a "serious contract violation" for allowing fraud disputes and data on Direct Express cardholders to be handled out of a vendor's office in Lahore, Pakistan, the documents show. Personally identifiable information on veterans, Social Security and disability recipients were routinely shared and handled by i2c Inc., a vendor based in Redwood City, Calif., with an office in Lahore, Pakistan — in violation of the government contract, the Comerica executive said. The Treasury's agreement with the bank states that all services provided "shall be performed in the United States or its territories." Paul Lawrence, who served as under secretary for benefits in the Department of Veterans Affairs from 2018 to 2021, said he was in "complete shock and disgust" after being told of the information contained in the internal Comerica documents. "All of these government contracts basically say you have to be in the U.S. and the program has to be run by U.S. citizens," Lawrence, a longtime government consultant, said in an interview. "This has all the makings for a really, really bad situation." The internal documents, in addition to court documents filed in a class action last year, paint a broader picture of the $91.2 billion-asset Comerica's strategy and third-party oversight of Treasury's Direct Express program, which serves 4.5 million Americans. Comerica has been mired in litigation and yearslong disputes over Direct Express, which it has operated under a contract with the Treasury since 2008. Direct Express deposits roughly $3 billion a month electronically on prepaid cards to millions of federal government beneficiaries who do not have a bank account. The program is part of a government effort to reduce potential fraud and costs by weaning people off paper checks.

Direct Express scandal is typical for how banks treat the 'sub-public' | American Banker -- Back in 2018 my phone rang. The person on the other end claimed to be a veteran whose benefits had been stolen — to the tune of thousands of dollars — and Comerica, the bank contracted to resolve such disputes, would do nothing to make the caller whole. That caller then put me in touch with several other beneficiaries who had the same experience, and I knew exactly what to do: hand the story off to American Banker reporter Kate Berry.Berry's story from back then detailed how simple it was to rip off Direct Express customers: All one would have to do is obtain a Direct Express debit card, usually by rooting through someone's mailbox, call the number on the back and ask the customer service representative to change the PIN. Stealing from veterans as well as disabled and elderly consumers is despicable, but people still do itfor the same reason anyone steals anything — because they can. What was harder to understand is why Comerica was seemingly so indifferent to these instances of fraud — though, to its credit, the company discontinued the Cardless Benefit Access Service that was the root of the scam — and how muted the public reaction was. Sen. Elizabeth Warren, D-Mass.,launched an investigation into the scam and the Treasury Department inspector general issued reports about it, but that was about it.Now we have news out today — from Kate Berry again, natch — that Comerica had partnered with a third-party vendor that had offices in Lahore, Pakistan, to fulfill aspects of its Direct Express contract, which Comerica has had since the program's creation in 2008. If that seems shady, don't take my word for it — Comerica's own compliance personnel flagged it as a "serious violation" of the contract, according to internal documents obtained by Berry. But the practice continued on — and, as far as we know, continues to continue on and will until someone tells them to stop.If I can indulge in a moment of righteous indignation, the way this program has been handled is disgraceful and fills me with the kind of rage I typically reserve for people who don't clean up after their dogs or who won't let you merge onto the highway. There is no inherent reason why a program like Direct Express has to be run so poorly — the effort put into the implementation of a program that sucks could just as easily be put into a program that works. But it seems that implementing a slapdash, corner-cutting enterprise saves Comerica a couple of bucks, and the company can get away with it because no one cares about the people it harms.It should be noted that Comerica has made quite a bit of money off this contract — something like $770 million in gross revenue over a six-year period. That's to say nothing of the $3 billion per month in deposits that the bank gets from the Treasury that it can then leverage into more profitable loans. That is nothing to sneeze at, and it seems the bank isn't really concerned about the Treasury changing its mind or another bank coming along and taking the contract away from them.

CFPB says billions stored on payment apps lack federal insurance --The Consumer Financial Protection Bureau issued a warning that money stored on digital payment apps may not be safe in the event of financial distress because the funds are not held in accounts with federal deposit insurance coverage. The CFPB published a consumer advisory Thursday stating that nonbank payment apps such as PayPal, Venmo and Cash App may be "unprotected." The advisory stated that digital payment apps could be at risk from investment losses, interest rate changes, currency exchange rates and liquidity problems. The CFPB said consumers may need to take action to move their balances stored in payment apps."Popular digital payment apps are increasingly used as substitutes for a traditional bank or credit union account but lack the same protections to ensure that funds are safe," CFPB director Rohit Chopra said in a press release. "As tech companies expand into banking and payments, the CFPB is sharpening its focus on those that sidestep the safeguards that local banks and credit unions have long adhered to."Chopra has long warned about increased fraud, and the safety and security of customer funds on digital payment apps. In April, Chopra suggested on a webcast that financial regulators should consider whether money transmitter services should be designated as systemically important to ensure their customers' funds are adequately protected. Last year, the agency requested information from Cash App, Venmo and its parent company PayPal, as well as Big Tech-backed payment platforms such as Apple Pay and Google Pay about their management of data and platform access. Payment apps allow users to quickly pay retailers and others, while providing the option to store funds. But the CFPB said that the bank liquidity crisis in March reminded many Americans that funds deposited with banks and credit unions "enjoy the safety afforded by federal deposit insurance through the Federal Deposit Insurance Corp. or National Credit Union Administration. The CFPB said an estimated $893 billion in transactions were conducted on payment apps across all service providers with the amount expected to double by 2027 to an estimated $1.6 trillion. The vast majority of consumers using digital payment apps are between the ages of 18 and 29, the bureau said.

CFPB orders OneMain to pay $20M for illegally withholding refunds -- OneMain Financial was ordered by the Consumer Financial Protection Bureau to pay a $10 million fine and to refund $10 million in interest charges to 25,000 customers that the lender illegally kept over the past four years. The CFPB said Wednesday that OneMain, based in Evansville, Indiana, had engaged in "unfair, deceptive and abusive acts and practices" by incentivizing its employees to sell so-called "add-on" products that were marketed as coming with a "full refund." The personal loan installment company tacked such products onto loans before showing the consumer any paperwork, and then told customers that it would be difficult to remove the add-on charges, even within days of canceling, the bureau said. The CFPB said that OneMain had kept $10 million in interest charges over the past four years that should have been refunded to consumers. OneMain issued refunds from 2019 to 2021 that averaged $827 per product, with $337 attributed to interest charged on credit insurance products. Customers that cancelled noncredit insurance products such as emergency towing, identity theft protection and entertainment discounts, were sent checks that did not include refunds for interest charged, the CFPB said in its consent order. The CFPB said OneMain makes extra profits by selling products such as roadside assistance and insurance products for unemployment coverage. OneMain directed employees "to upsell borrowers on every loan," even when consumers "had already declined the products on previous loans," the bureau said. "OneMain pressured its employees to load up its loans with extra charges through false promises of easy cancellation with full refunds," CFPB Director Rohit Chopra said in a press release. "We are ordering OneMain to refund borrowers it cheated and to clean up its business practices." OneMain has already received regulatory scrutiny before Wednesday's order. Last week, the company was ordered by New York's Department of Financial Services to pay a $4.25 million fine for slipshod cybersecurity practices. The company, with $4.4 billion in annual revenue, operates 1,400 branches in 44 states. OneMain's CEO Doug Shulman is a former executive vice president and member of the executive committee at BNY Mellon.

Equity Prime Mortgage accused of not paying rent --Two rent-related lawsuits were lodged by separate property companies against Atlanta-based Equity Prime Mortgage LLC, adding to the outstanding number of litigation battles the multi-channel lender has to resolve, including one filed by a NASCAR team in late-December.The lease lawsuits were lodged in Florida and Missouri two months apart by landlords accusing the mortgage company of not paying rent for office spaces.A suit filed in Florida by TGT Maitland, LLC in April accuses the lender of "failing and refusing to pay the rent and other amounts owed under the lease" for an office space it has been renting since 2019. The sum owed as of March 6 totals close to $30,000.A month prior, litigation was filed on behalf of Weldon Centre, LLC, a company that owns buildings in Missouri. The company filed a rent and possession lawsuit, a method commonly used by landlords when tenants do not pay rent. Details regarding the lawsuit are sparse, but as of April 3 the case has been marked as resolved. The attorney representing Weldon Centre would not provide further information about the case.According to the lawsuit filed in Florida, EPM, which has headquarters in Atlanta, has been renting the office owned by TGT Maitland since May 2019. In September 2022 the mortgage shop renewed the lease for an additional three years. The rent currently due by EPM totals at least three months, with the monthly rate of the property coming in at $8,817, documents show.

ESSA Bank & Trust will pay $3M to settle redlining claims ESSA Bank & Trust will pay over $3 million to resolve redlining allegations, the Department of Justice announced Wednesday evening. The Stroudsburg, Pennsylvania-based bank, from 2017 to 2021, did not sufficiently serve the credit needs of majority-Black and Hispanic neighborhoods in and around Philadelphia by "failing to provide mortgage lending services" and "discouraging such borrowers," the DOJ alleges. The city has a history of redlining practices that goes back to the 20th century. Per a consent order, which is subject to court approval, ESSA will invest $2.92 million in a loan subsidy fund to increase access in minority neighborhoods, $125,000 on community partnerships and $250,000 on outreach and consumer financial education efforts. At least 50% of the subsidy fund must be used for consumers applying for loans in majority-Black and Hispanic census tracts within a five mile radius of the bank's Upper Darby and Lansdowne branches, the court order said. Additional stipulations of the order require the bank to hire two new mortgage loan officers to serve its existing branches in West Philadelphia, and for ESSA to conduct a research-based market study to identify the needs for financial services in communities of color. These requirements will stay in effect for five years. ESSA's President Gary Olson said he "vehemently [denies] the government's allegations of redlining" but added that the company "cooperated expeditiously and fully with the investigation into this matter." Olson called the settlement a "constructive resolution to a dispute that has lasted several years." "We plan on using these loan subsidy funds to expand opportunities for qualified borrowers who can benefit from this assistance," he added.

Regulators propose quality control rules for automated appraisals -- Federal financial regulators are weighing a rule that outlines best practices for the use ofcomputer-generated appraisals on properties used as collateral for loans or other credit considerations.The Federal Reserve, Federal Deposit Insurance Corp., Office of the Comptroller of the Currency, Consumer Financial Protection Bureau, National Credit Union Administration and Federal Housing Finance Agency issued a proposed rule governing the use of automated valuation models, or AVMs, on Thursday afternoon.The proposed rule was announced along with several other initiatives from regulatory agenciesand the White House aimed at curbing discrimination in the home valuation process and smoothing the path to homeownership.The rule calls for mortgage originators and secondary market issuers to adhere to standards and apply quality control methods in order to use AVMs, which have gained traction in recent years as means for streamlining the home loan process. Yet, the technology underpinning these computerized appraisals has drawn skepticism from regulators who believe such systems could be unreliable or swayed by programmed bias. CFPB Director Rohit Chopra has been calling for restrictions around algorithmic valuations since last February."It is tempting to think that machines crunching numbers can take bias out of the equation," Chopra said at the time, "but they can't."Thursday's proposal calls for firms to create their own "policies, practices, procedures, and control systems" for the use of AVMs. Greater expectations will be put on large firms and those that deal in risky and more complex types of lending. Such standards would not be applied to AVMs used to monitor real estate portfolios over time or appraisals conducted to validate an already completed valuation.Also, the proposed quality control requirements would only apply to the use of AVMs in transactions that are exempt from appraisal requirements set by the Fed, OCC, FDIC and NCUA, including those that fall beneath certain value thresholds. Certified or licensed real estate appraisers who use AVMs as part of their valuation process would not be covered by the rule either.

Over 40% of sellers offered concessions to buyers this spring --More than four out of five sellers are offering concessions to offload their homes, well above the portion of a year ago and just off a record high mark from early 2023, Redfin reported.Approximately 42.9% of homeowners who sold their homes during the three-month period ending April 30 included an incentive, such as funding for repairs, payment of closing costs or mortgage-rate buydowns, the online real estate platform said. The share was more than two-thirds higher in comparison to 25.5% reported a year ago. Three months earlier, a record 45.6% of sellers offered concessions. The margin of difference between late February and April runs counter to typical yearly patterns, which sees concessions fall more steeply at the start of spring buying season. While this year's share slipped down 6%, 2021 and 2022's drops were three times higher at 18%.But the data largely reflects other recent mortgage lending and housing market reports that show the usual upswing in sales to kick off spring coming in muted. On Thursday, the National Association of Realtors found pending home sales in April flat compared to a month earlier."The housing market has struggled to gain momentum during the industry's crucial spring home-buying season," said Odeta Kushi, deputy chief economist at First American, in a statement. More than a third of existing home sales transactions historically occur between March and June, she noted. A primary reason behind the still-elevated level of concessions offered to buyers is the effect of high mortgage rates, Redfin said. The increase in rates over the past year has more than offset a decline in home prices, making it more challenging to sell in many markets.Redfin also found that seller concessions were offered in addition to lower-than-initial asking prices in over 20% of sales, up nearly threefold from the same February-to-May time frame of 2022.

State Farm Halts Home Insurance Sales In California - Faltering California took another economic hit on Friday, as America's largest personal lines insurer said it would immediately stop selling new home insurance policies in the state. California is the largest property and casualty insurance market in the country. State Farm attributed the decision to three factors: "historic increases in construction costs outpacing inflation, rapidly growing catastrophe exposure, and a challenging reinsurance market." Reinsurance is a method of transferring some of an insurer's risk to other insurers. Existing policies will stay in effect -- for now. There's always the possibility that, if things keep deteriorating, State Farm could decide to "non-renew" current policy-holders. That's what AIG did last year, sending thousands of high-end homeowners scrambling to find new coverage. The announcement's timing -- on a Friday afternoon heading into a long holiday weekend -- seemed intended to minimize publicity. In statement, State Farm said it "will cease accepting new applications including all business and personal lines property and casualty insurance, effective May 27, 2023. This decision does not impact personal auto insurance." The halt seems to include renters insurance, though the announcement wasn't explicit on that count. Inflation has been taking a harsh toll on insurers, who are pressing regulators to approve rate hikes to compensate for rising claim costs. Earlier this month, for example, San Antonio-based USAA posted the first ever annual loss in its 100-year history -- a $1.3 billion setback.

State Farm not accepting property insurance applications - Insurance giant State Farm is no longer accepting new applications for business or personal property coverage in California.“We take seriously our responsibility to manage risk,” the company said in a statement posted to its website Friday. “State Farm General Insurance Company made this decision due to historic increases in construction costs outpacing inflation, rapidly growing catastrophe exposure and a challenging reinsurance market.”Automobile insurance is not affected by the change, which took effect Saturday.The company was the state’s largest provider of property and casualty insurance as of 2021, the most recent year for which data are available from the California Department of Insurance.“While insurance companies prioritize their short-term financial goals, the long-term goal of the Department of Insurance is protecting consumers,” said Michael Soller, deputy insurance commissioner and spokesman. “The factors driving State Farm’s decision are beyond our control, including climate change, reinsurance costs affecting the entire insurance industry and global inflation.”Last year, California became the first state to require insurance premium discounts for owners who implement wildfire protection safeguards at homes or businesses. The change was a response to soaring insurance costs for people in areas prone to wildfire.“Protecting Californians from deadly wildfires means everyone doing their part, including insurance companies, by rewarding consumers for being safer,” Insurance Commissioner Ricardo Lara said at the time.While State Farm pledged to “work constructively” with California policymakers and regulators, the change is necessary to “improve the company’s financial strength,” the statement said.State Farm last year posted a net loss of $6.7 billion, driven largely by losses in the auto division. The company’s homeowner division recorded $849 million in underwriting gains.

Office real estate looks dicey with REITs plunging to a 2009 low -- Office real estate investments trusts are trading at their lowest level since 2009 as the trend toward remote work leaves desks empty and economic pressures tighten corporate budgets. The S&P Composite 1500 Office REITs index is down 27% in 2023, plunging to its worst reading since July 22, 2009. Office landlords comprise just 6% of the REIT sector, which explains why the broader S&P Composite Equity REITs index is down just 5.2% year-to-date and the S&P 500 Real Estate sector has dropped 4.5%. Offices are what's weighing on the group. "There's two ways to lose money: You can own a boat, or you can own an office building," Piper Sandler analyst Alexander Goldfarb said. "At least with the boat you can take your friends out on a sunset cruise." While the stress on the office sector may not be new, the shift to working from home has exacerbated the problem. However, much of the damage could already be priced into the stocks after this latest selloff, analysts said. In addition, fears about commercial real estate have added to the woes of regional bank stocks that typically fund local projects like strip malls and small office buildings. The sector has been pressured since the collapse of Silicon Valley Bank in March sparked industrywide turmoil. Now some investors fear that its exposure to office weakness could be the next shoe to drop. However, those worries may be overblown. "There's probably going to be some heartburn in the bank space and probably some charge-offs," said Ben Gerlinger, an analyst at Hovde Group. "But I think a lot of smaller and community regional banks are well-positioned." Quality Counts What's more, the outlook for office landlords could improve as companies encourage workers to return to their desks and restrict remote work policies. "We're starting to see some of that reversal," RBC Capital Markets analyst Michael Carroll said. "You're seeing the first steps of people starting to reutilize their office spaces when they weren't just a few years ago." The age and quality of each building will be a key differentiator in which offices succeed over the long term and which don't. Newer office buildings with modern amenities will likely benefit the most as companies seek out spaces that will entice workers back into the office. And of course, the financial makeup of each office landlord is key. Industrial and senior housing landlords could prove to be potential bright spots due to their healthy fundamentals and strong cash flow generation, according to Carroll.

That was Fast: Mortgage Rates Re-Spike to 7% Range as it Sinks in that the Fed Won’t Cut Rates “Anytime Soon,” Mortgage Applications Plunge to 1995 Levels. Even Investors Pull Out -- By Wolf Richter - Spring selling season was a dud. But what comes next may be worse, that’s what mortgage applications and investors tell us. The 7% mortgages are back. The average interest rate on 30-year fixed-rate mortgages with conforming balances jumped to 6.91%, the highest since November, according to the weekly measure by the Mortgage Bankers Association today. The daily measure by Mortgage News Daily already went over 7% a few days last week and earlier this week. “Inflation is still running too high, and recent economic data is beginning to convince investors that the Federal Reserve will not be cutting rates anytime soon,” is how the Mortgage Bankers Association explained today what has been obvious to us here for months. And so, with these kinds of mortgage rates, spring selling season – the time of the year when sales and prices nearly always rise from the dreary days of the winter – has turned into an amazing dud. Applications for mortgages to purchase a home dropped for the third week in a row, from already low levels, to the third-lowest volume since 1995, the two lowest volume-weeks having been in late February this year, according to the MBA today. Purchase mortgage applications plunged, compared to the same week in: 2022: -31%; 2021: -41%; 2019: -40%. What comes next may get sloppy. Mortgage applications to purchase a home are a forward-looking indicator of where home sales as measured by closed deals are headed in a month or two. The 7% mortgages are indigestible at current home prices – something has to give, and it’s not going to be mortgage rates. And the backward-looking data on sales volume, such as those by the National Association of Realtors, has already been lousy, amid rising supply, plunging volume, and increased days on the market, while even investors pulled out.That investors pulled out of the housing market was confirmed by Redfin today: Purchases by investors plunged by 49% year-over-year in Q1 in the metros tracked by Redfin.

Construction Spending Increased 1.2% in April -- From the Census Bureau reported that overall construction spending increased: Construction spending during April 2023 was estimated at a seasonally adjusted annual rate of $1,908.4 billion, 1.2 percent above the revised March estimate of $1,885.0 billion. The April figure is 7.2 percent above the April 2022 estimate of $1,780.9 billion. Both private and public spending increased: Spending on private construction was at a seasonally adjusted annual rate of $1,500.7 billion, 1.3 percent above the revised March estimate of $1,481.6 billion. ... In April, the estimated seasonally adjusted annual rate of public construction spending was $407.7 billion, 1.1 percent above the revised March estimate of $403.4 billion. This graph shows private residential and nonresidential construction spending, and public spending, since 1993. Note: nominal dollars, not inflation adjusted. Residential (red) spending is 10.5% below the recent peak. Non-residential (blue) spending is at a new peak. Public construction spending is at a new peak. The second graph shows the year-over-year change in construction spending. On a year-over-year basis, private residential construction spending is down 9.2%. Non-residential spending is up 31.1% year-over-year. Public spending is up 16.5% year-over-year. This was well above consensus expectations of a 0.2% increase in spending and construction spending for the previous two months was revised up.

Construction spending climbed higher in April - Total construction spending advanced 1.2% during April. The monthly gain translates to a 7.2% annual increase. Total outlays have now risen for three consecutive months. While the threat of a recession looms large, the construction industry appears to be enjoying more favorable supply-side conditions at present. Construction supply chains are still not functioning as they were prior to the pandemic, with truck drivers and key materials like windows and power transformers still difficult to come by. That noted, building material price inflation has moderated considerably, which is a welcome relief from the rapid-run up over the past several years. The construction labor market has also loosened up a bit. The Job Openings and Labor Turnover survey released by the BLS yesterday revealed that the count of job openings in the construction industry rose to 383K in April alongside an overall uptick in total job openings. Despite rising on a monthly basis, construction job openings are down from the 488K peak registered in December 2022. The quits rate also increased slightly in April, which is more-or-less back to the average rate experienced before the pandemic. While still tight, the construction labor market appears to be moving into better balance with demand cooling and fewer construction workers seeking opportunities elsewhere. Looking ahead, the tightening in lending standards following recent banking sector volatility will certainly be a headwind for construction. The forward-looking Architecture Billings Index slipped to 48.5 in April, which suggests reduced access to credit may already be weighing on the project pipeline. That noted, the construction industry continues to benefit from structural shifts brought on by the pandemic. Residential spending rose in April thanks in large part to another solid gain in home improvement spending. The recent surge in home prices, rise of remote work and shortfall of single-family homes for homeowners to trade-up into has resulted in a notable upshift in home improvement projects. Meanwhile, manufacturing project spending continues to boost overall nonresidential outlays. In addition to an upshift in renewable energy projects, the build-out of electric vehicle supply chains and domestic semiconductor manufacturing facilities is currently underway. Momentum should only build as more public funding from the Inflation Reduction Act and CHIPS and Science Act becomes available.

US consumer confidence dips to six-month low, labor market views soften (Reuters) - U.S. consumer confidence slipped to a six-month low in May as Americans' assessment of the labor market softened, but more households planned to purchase motor vehicles and other big-ticket items over the next six months, which could support economic growth this quarter. The ebb in confidence reported by the Conference Board on Tuesday was concentrated among consumers aged 55 years and older, as well as among households with annual incomes in the $50,000-$99,000 range. Consumers expected inflation to stabilize at higher levels over the next year. "Consumer confidence levels are in a holding pattern even if they are saying it isn't quite as easy as it was to get a new job," said Christopher Rupkey, chief economist at FWDBONDS in New York. "Older Americans were less confident in the future perhaps with talk of budget cuts and the eventual need to rein in entitlement programs like Social Security and Medicare." The Conference Board's consumer confidence index slipped to 102.3 this month, the lowest level since last November, from an upwardly revised 103.7 in April. Economists polled by Reuters had expected the index to fall to 99 from the previously reported reading of 101.3. The cutoff date for the survey, which places more emphasis on the labor market, was May 22. A fight to raise the government's borrowing cap weighed on the University of Michigan's consumer sentiment measure this month.

Retail Sector Is The "Soft Underbelly" Of The Economy - Today retailers closing locations across America are about to show retailing is a sector of the economy that has been given far less attention than it merits. Once these locations go empty, many may never again be occupied. This is a continuation of what started prior to the pandemic in response to Amazon and online commerce. The reality of this, for me, comes front and center when I think about the mall across the street from my office losing its last two anchor stores, Macy's and JCPenny. Without them, the mall will be in dire straits. This round of forecloses will be far more devastating than what we saw in the first wave. Analysts estimate that by the end of 2023, the national brick-and-mortar footprint may be reduced by up to 20%. This is due to many retailers leveraging up when interest rates were low. This is exacerbated by the idea a recession is just around the corner. Where money flows and who it enriches is a key component of economics, the failure to consider this is a blind spot many people have. Already many big box retailers, grocery stores, apparel chains, home goods companies, and big-name businesses like Burger King, GameStop, and Sephora have announced mass store closings in 2023. These companies are rushing to close under-preforming locations in an effort to limit the bleeding on their balance sheets. This environment is where the predatory monster known as Amazon comes back to haunt communities. Online purchases in illiquid hard to find specialty items have a lot of merits. It expands our options, however, when used as a way to avoid visiting and buying from local merchants many negative ramifications come home to roost. While touting Amazon as a model of efficiency what people often forget is that its overall business model is far from efficient. Simply put, it is only after many local stores are gone that people will realize the hidden cost of buying online.

More Than 50,000 US Stores Will Close By 2027 According To UBS - Over 2,000 stores across all retail sectors have closed in the past 12 months according to a recent report from UBS retail analyst Michael Lasser (available to pro subs in the usual place), and that is just the beginning. "As of 3Q’22 (latest available data), retailers shed -1,500 net stores. This number is already up significantly in ‘23 with the likes of Bed Bath & Beyond, Foot Locker, Tuesday Morning and others closing stores recently" the UBS economists wrote.“We believe this trend should continue in the years to come, with consumers consolidating their trips and shifting towards online channels. As underperforming retail stores are shuttered, it should help the store productivity of surviving locations,” the report authors said, and predicted that over the next 5 years, "another 50,000 stores will close on the current store base of ~940K stores in the US (ex. gas and food service).""This simply implies that there will be -5% fewer stores by the end of ’27. As this happens, we believe this trend will benefit the large, well-capitalized retailers HD, LOW, WMT, TGT, COST) and those with unique differentiations (FND, ASO, EYE) who stand to capture a disproportionate amount of market share." In other words, just like with US banks, the big players will only get bigger while the small ones disappear.To put this in perspective, UBS calculates that assuming 50k stores close over the next five years and that the average sales per store is $5.7mm, it would translate to $285b of retail sales that are “up for grabs”. Assuming that 26% of these sales go online (the bank's ’27 estimate for penetration), it would mean that retailers like WMT, HD and COST have the potential to attract $210b in sales. This translates to $1,600 annual spend per household that has the potential to shift to the leading retailers.The good news for big retailers is bad news for the small ones:In our view, these smaller chains and mom & pops are most at risk of closures given these firms typically have less access to capital needed to invest in developing a robust omni-channel offering. As of 2020, 57% of retail stores are operated by firms with less than 20 employees and 68% of stores are operated by chains with less than 500 employees. These smaller chains shed -40K stores in the past 10 years while chains with 500+ employees added 17K stores.It could get even worse: the base case scenario assumes that retail sales growth continues at 4% annually which is inline with the long-term trend. However, in a downside case, the protracted US recession would put downward pressure on the UBS store closure forecast where if retail sales only grow 3.0-3.5% it would result in 70K-90K closuresUBS highlighted several factors that are driving retail store closures. They include higher costs, which raise the bar for keeping stores open; a decline in units per store in most retail sectors; and the likelihood that store closures will disproportionately affect smaller chains.From 2007 to 2019, firms with less than 500 employees closed about 40,000 stores, or 5% of their base, while retailers with more than 500 employees added 17,000 stores. The overall cost of doing business rose significantly in the last 12 months, due in part to higher wages. Retail hourly wages, which are typically the largest cost component of running a store, increased about 5% over the last years, the analysts said.On top of that, retailers will need to increase store productivity by 4.5% annually as retail rents per square foot increase for neighborhood and community centers. “These costs will likely continue to move higher, increasing the hurdle rate to keep stores open,” UBS said.As RetailDive notes, about 14,000 of the estimated closings will be in the softlines sector. UBS forecasts that department stores and specialty retailers will remain net store closers. And while retailers with a heavy mall presence will continue store closings, there is a faint silver lining for off-price retailers who should grow units. The report also singles out consumer electronics and home furnishings as retail sectors that also need to shrink their store footprint. Consumer electronics retailers should close about 9,000 stores, while home furniture stores should shrink by about 4,000 locations.

Target Stores Hit With Bomb Threat After 'Turning Its Back' On LGBTQ+ Community -- At least five Targets in multiple states received bomb threats Friday over company executives pulling the Pride collection section because of mounting boycotts, leading to multiple stores being evacuated as police and the FBI searched for explosive devices. "Target is full of [redacted] cowards who turned their back on the LGBT community and decided to cater to homophobic right wing, redneck, bigots, who protested and vandalized their store," reads a threatening email sent to several Target locations in Ohio and one in Pennsylvania, Cleveland 19 News reports. "We won't stand idly by as the far right continues to hunt us down. We are sending you a message, we placed a bomb in the following Targets. We will continue to bomb your Targets until you stop cowering and bring back your LBGT merchandise. " One shopper told 19 News, "I know a lot of people around here are not a fan of LGBT that kind of stuff me personally I mean it's whatever. I never thought someone would go as far as a bomb threat." In Utah, local media outlet KUTV said, "Bomb threats were made to Target stores in Layton, Salt Lake, Taylorsville, and Provo." On Thursday, one day before the bomb threat was made, we reported a Fox News insider confirmed Target stores across the South and rural America removed controversial LGBT-themed products ahead of June Pride month to avoid further backlash. Some products ranged from "tuck-friendly" swimsuits for transgender people to gender-fluid coffee mugs. The insider said the reasoning behind such an abrupt move is "to avoid the kind of backlash Bud Light has received in recent weeks."

Target's Marketing VP Also Works For Organization Pushing Transgender Agenda In Schools -- In the wake of the controversy surrounding Target’s debut of pro-transgender clothing lines aimed at children, it has since been revealed that one of the senior executives in the company’s marketing department also holds a position with a pro-transgender advocacy group. According to Fox News, the vice president of brand marketing for Target, Carlos Saavedra, is also a treasurer for the Gay, Lesbian and Straight Education Network (GLSEN). GLSEN has pushed for schools across the country to enact policies that forbid parents from being made aware of their childrens’ gender identities at school, as well as pushing schools to include explicitly sexual books in their libraries.GLSEN has written out its preferred policy for schools’ treatment of the parents of students, declaring that “[the local education agency] shall ensure that all personally identifiable and medical information relating to transgender and nonbinary students is kept confidential.”“Staff or educators shall not disclose any information that may reveal a student’s gender identity to others, including parents or guardian,” the policy continues. “This disclosure must be discussed with the student, prior to any action.”GLSEN is also Target’s partner for the pride month campaign, where the company and other corporations throughout the United States celebrate homosexuality, transgenderism, and other forms of sexual degeneracy. Target donates to GLSEN every year, with the most recent one being roughly $2.1 million.In a statement, Target reaffirmed its support for GLSEN, declaring that the group “leads the movement in creating affirming… and anti-racist spaces for LGBTQIA+ students. We are proud of 10+ years of collaboration with GLSEN and continue to support their mission.”Target is currently facing a nationwide boycott after it rolled out the line of bathing suits and other clothing targeted at so-called “transgender” people, and specifically aimed at young children. Target stock has declined by over $10 million since the boycott began, drawing comparisons to a similar boycott against Bud Light over its partnering with “transgender” social media influencer Dylan Mulvaney.

Texas Services Sector Survey Signals 12th Straight Month Of Contraction - For the 12th straight month, The Dallas Fed Services Outlook Survey printed negative in May. Perceptions of broader business conditions continued to worsen in May. The general business activity index remained negative and fell three points to -17.3. The company outlook index remained the same at -9.5, while the outlook uncertainty index was flat at 15.8—close to its series average of 13.6. Respondents were more mixed but all noted issues with hiring and inflation

• Congressional inaction on raising the debt limit is disconcerting to clients, which impacts the prospects of utilizing our services.
• [There is] increased uncertainty and stress due to the lack of qualified workers to meet growing demand. [There are] enough disruptions and remote work; we need the stability of an in-office workforce to manage productivity and work ethic.
• Our clients are continuing to delay decisions to work with us.
• Businesses are preparing for a recession by looking for ways to cut back, which in some ways, works to create a self-fulfilling prophecy.
• Inflation has really been a concern for us and our vendors. It's becoming very difficult to absorb the increase in prices at every level.
• We are seeing a noticeable slowdown in the level of business activity in our manufacturing industry clients, especially in the consumer goods and auto-industry-related companies.
• Our two main challenges have been employee related and the increasing cost of technology.
• The banking crisis and compounding impact of the high cost of capital, general commercial uncertainty and consumer spending fluctuations are culminating to place heavy pressure on our business, which has moved us to lay off hundreds of employees this year.
• We are seeing signs of slower consumer spending at restaurants, and our sales have been slowing since March.
• Interest rates have killed business along with high inflation.

Chicago PMI Unexpectedly Plummets, Longest 'Contraction' Streak Since Lehman - After the unexpected resurgence in April, Chicago PMI plunged in May from 48.6 to 40.4 (against expectations of 47.3). That is the ninth straight month below 50 (in contraction)... That is the longest streak of prints in 'contraction' since the Great Financial Crisis.Under the hood, none of the underlying drivers were higher MoM...

• Prices paid rose at a slower pace; signaling expansion
• New orders fell at a faster pace; signaling contraction
• Employment fell and the direction reversed; signaling contraction
• Inventories fell at a faster pace; signaling contraction
• Supplier deliveries rose at a slower pace; signaling expansion
• Production fell at a faster pace; signaling contraction
• Order backlogs fell at a faster pace; signaling contraction

This continues a trend of 'soft' survey data disappointing notably.

ISM® Manufacturing index Decreased to 46.9% in May --The ISM manufacturing index indicated contraction. The PMI® was at 46.9% in May, down from 47.1% in April. The employment index was at 51.4%, up from 50.2% last month, and the new orders index was at 42.6%, down from 45.7%. From ISM: Manufacturing PMI® at 47.1% May 2023 Manufacturing ISM® Report On Business® “The May Manufacturing PMI® registered 46.9 percent, 0.2 percentage point lower than the 47.1 percent recorded in April. Regarding the overall economy, this figure indicates a sixth month of contraction after a 30-month period of expansion. The New Orders Index remained in contraction territory at 42.6 percent, 3.1 percentage points lower than the figure of 45.7 percent recorded in April. The Production Index reading of 51.1 percent is a 2.2-percentage point increase compared to April’s figure of 48.9 percent. The Prices Index registered 44.2 percent, down 9 percentage points compared to the April figure of 53.2 percent. The Backlog of Orders Index registered 37.5 percent, 5.6 percentage points lower than the April reading of 43.1 percent. The Employment Index indicated another month of expansion, registering 51.4 percent, up 1.2 percentage points from April’s reading of 50.2 percent. The Supplier Deliveries Index figure of 43.5 percent is 1.1 percentage points lower than the 44.6 percent recorded in April; this is the index’s lowest reading since March 2009 (43.2 percent). The Inventories Index dropped 0.5 percentage point to 45.8 percent; the April reading was 46.3 percent. The New Export Orders Index reading of 50 percent is 0.2 percentage point higher than April’s figure of 49.8 percent. The Imports Index remained in contraction territory, registering 47.3 percent, 2.6 percentage points lower the 49.9 percent reported in April.” This suggests manufacturing contracted in April. This was slightly above the consensus forecast.

US Manufacturing Surveys Signal "Renewed Deterioration Of Business Conditions" In May, Orders/Prices Plunge - With overall macro data serially surprising to the downside in May, it is no surprise that expectations were for sub-50 (contractionary) prints for ISM & PMI Manufacturing surveys this morning.

• Manufacturing PMI slipped from its flash 48.5 level to 48.4 final in May, down from 50.2 in April (the 6th month below 50 of the last 7)
• ISM Manufacturing also disappointed, falling from 47.1 to 46.9 (below 47.0 exp) - the 7th straight month below 50.

The good news - prices paid plunged back into contraction. The bad news - new orders plunged to their biggest contraction since COVID lockdowns... Graphs Source: Bloomberg Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, said:“May saw a renewed deterioration of business conditions in the US manufacturing economy which will add to concerns about broader economic health and recession risks. “Although a record improvement in supplier delivery performance helped manufacturers fulfil back orders in May, generating a third successive monthly rise in output, the overall rate of production growth remained disappointingly meagre thanks to a further drop in new order inflows.“Unless demand picks up, production growth will move into decline seen as it is clearly unsustainable to rely solely on backlogs of orders, which are now being depleted at the fastest rate for three years. Hence companies are cutting back sharply on their input buying and seeking to minimise inventory, tightening their belts for tough times ahead. “All of this is of course disinflationary, with manufacturers and their supply chains having seen pricing power shift rapidly from the seller to the buyer over the course of the past year, resulting in a dramatic cooling of industrial price pressures. “We are likely to see further downward pressure on both output and prices for goods in the coming months, thanks to the demand environment which has been hit by higher interest rates, the increased cost of living, economic uncertainty and a post-pandemic shift in spend from goods to services.Finally, Williamson notes that the one area of resilience is the labour market, "as firms continued to take on more staff to fill long-empty vacancies, though we should bear in mind that employment is typically a lagging indicator. It does nevertheless point to some upward pressure on wages.”

US Job Openings Unexpectedly Soar Above Highest Estimate - For those following the recent sharp drop in job openings, today's latest bizarro JOLTS report will come as a shock. That's because after three months of sharp declines, the BLS reported that in April the number of job openings soared by 358K from an upward revised 9.7 million to 10.1 million, the biggest increase since Dec 2022... .... and printing not only above the median consensus which expected the trend to continue with 9.4 million job openings this month, but came higher than the highest Wall Street estimate! As shown in the chart below, the delta to median consensus print was a whopping 703K. According to the BLS, the biggest increase in job openings was in retail trade (+209,000); health care and social assistance (+185,000); and transportation, warehousing, and utilities (+154,000) The sudden, bizarre reversal in the job openings trend, meant that after falling to the lowest level since Sept 2021, in April the number of job openings was 4.446 million more than the number of unemployed workers, the highest since January. Said otherwise, after dropping to just 1.64 job openings for every unemployed worker, the lowest since Nov 2021, in April there were 1.79 openings for every worker, a sharp spike back to levels that the Fed does not want to see. To be sure, none of the above data are credible for reasons we have discussed before but the simplest one is because the response rate of the JOLTS survey is stuck at a record low 31%. Which means that only those who actually have job openings to report do so, while two-thirds of employers are either non-responsive or their mail is quietly lost in the mail. Another reason why today's data is meaningless is that even as employers allegedly put up many more job wanted signs, the number of workers actually quitting their jobs - a proxy for those who believe they can get a better-paying job elsewhere, and thus strength of the overall job market - tumbled by 129K to 3.8 million, the lowest number since May 2021.

ADP Reports Bigger Than Expected Jobs Gains, Slowing Wage Growth - Against expectations of a +170k print, the ADP Employment Report shows that the US economy added 278k jobs The second big beat on a row... Job growth is strong while pay growth continues to slow. But gains in private employment were fragmented last month, with leisure and hospitality, natural resources, and construction taking the lead. Manufacturing and finance lost jobs. Only large businesses saw job losses... ADP's Neel Richardson comments that: "This is the second month we've seen a full percentage point decline in pay growth for job changers. Pay growth is slowing substantially, and wage-driven inflation may be less of a concern for the economy despite robust hiring." Last month brought a broad-based slowdown in pay increases. Job changers saw a gain of 12.1 percent, down a full percentage point from April. For job stayers, the increase was 6.5 percent in May, down from 6.7 percent. Finally, we note that Challenger Grey showed layoffs rising at 287% YoY...

May Employment Report: 339 thousand Jobs, 3.7% Unemployment Rate - From the BLS: Total nonfarm payroll employment increased by 339,000 in May, and the unemployment rate rose by 0.3 percentage point to 3.7 percent, the U.S. Bureau of Labor Statistics reported today. Job gains occurred in professional and business services, government, health care, construction, transportation and warehousing, and social assistance.... The change in total nonfarm payroll employment for March was revised up by 52,000, from +165,000 to +217,000, and the change for April was revised up by 41,000, from +253,000 to +294,000. With these revisions, employment in March and April combined is 93,000 higher than previously reported. The first graph shows the jobs added per month since January 2021. Total payrolls increased by 339 thousand in May. Private payrolls increased by 283 thousand, and public payrolls increased 56 thousand. Payrolls for March and April were revised up 93 thousand, combined. The second graph shows the year-over-year change in total non-farm employment since 1968. In May, the year-over-year change was 4.06 million jobs. Employment was up significantly year-over-year. The third graph shows the employment population ratio and the participation rate. The Labor Force Participation Rate was unchanged at 62.6% in May, from 62.6% in April. This is the percentage of the working age population in the labor force. The Employment-Population ratio declined to 60.3% from 60.4% (blue line). The fourth graph shows the unemployment rate. The unemployment rate increased in May to 3.7% from 3.4% in April. This was well above consensus expectations; and March and April payrolls were revised up by 93,000 combined.

US unemployment rate inches up despite 339,000 new jobs added in May - The May jobs report released Friday by the US Bureau of Labor Statistics showed mixed indicators, with a stronger than expected 339,000 jobs added last month while unemployment edged up from 3.4 to 3.7 percent. The total number of those employed fell by 310,000. These job numbers were well above the 253,000 new jobs created in April, which in turn was well above estimates. In May, forecasts had projected 195,000 new jobs and 3.5 percent unemployment rate. Financial markets rose on release of the jobs report on the expectation that the increase in unemployment would forestall another interest rate hike when the US Federal Reserve Board meets later this month. The US central bank has been relentlessly driving interest rates higher over the past year with the aim of increasing unemployment and crushing the push for higher wages by workers. However, many economists say they expect interest rate rises to continue. Christopher Rupkey, chief economist at FWDBONDS told Yahoo Finance “the Fed can’t afford to pass on a rate hike at the June meeting as the labor market is just too darn strong.” Wage growth in May remained anemic, rising at a 4.3 percent annual rate, significantly below official inflation rates, signaling that living standards for the working class continue to erode. Manufacturing activity declined in May for the seventh straight month in a row while service sector jobs, such as travel and leisure as well as health care showed increases. Construction also added 25,000 jobs. Professional and business services, government employment, transportation and warehousing, and social assistance all showed job gains. Despite this, the total number of unemployed rose 440,000 to 6.1 million. The jobless rate among adult women (3.3 percent) and African Americans (5.6 percent) rose in May. The unemployment rate for the disabled and those without high school or college education also rose significantly. Meanwhile, the average work week fell to 34.3 hours, the lowest since April 2020. Overall US economic growth was a miserable 1.3 percent in the first quarter of the year. The contradiction between the larger than expected number of new jobs and the parallel rise in joblessness appears to reflect the differences in the way the two figures are calculated. The unemployment figures are based on a survey of households, which includes employment in gig work and other nontraditional employment while the business survey, which is used to measure job creation, does not count those types of work. The labor force participation rate, a more accurate measure, which indicates the total proportion of the population that is employed, was basically unchanged in May at 62.6 percent below the February 2020 prepandemic level of 63.3 percent.

Dueling May jobs reports: establishment report strong, household report pre-recessionary - My focus for this report continued to be whether the leading sectors and other indicators continued to decline, and whether the pace of growth continued to decelerate. The establishment side of the report was strong, with most leading indicators improving. But the household side was not just weak, it was negative, with an outright loss of jobs, and a significant increase in the unemployment rate, which turned higher YoY for the first time during this expansion. Here’s my in depth synopsis.

• 339,000 jobs added. Private sector jobs increased 283,000. Government jobs increased by 56,000.
• March was revised higher by 52,000 (still -19,000 below its original number) and April by 41,000, for a total of +93,000. The three month moving average increased to 282,000.
• As highlighted above, the alternate, and more volatile measure in the household report *declined* by -310,000 jobs. The YoY% gain in this report is only +1.5%.
• The U3 unemployment rate rose 0.3% to 3.7%. The civilian labor force, the denominator in the figure, rose slightly, while the numerator, the number of unemployed, rose sharply to a 12+ month high.
• U6 underemployment rate rose 0.1% to 6.7%.
• the average manufacturing workweek, one of the 10 components of the Index of Leading Indicators, was unchanged at 40.7, down -0.9 hours from February peak last year of 41.6 hours.
• Manufacturing jobs decreased by -2,000.
• Construction jobs increased by 25,000.
• Residential construction jobs, which are even more leading, rose by 2,400. It nevertheless appears likely that January was the peak for this sector.
• Temporary jobs, which have generally been declining late last year, rose this month by 7,700.
• the number of people unemployed for 5 weeks or less increased 217,000 to 2,183,000.
• Average Hourly Earnings for Production and Nonsupervisory Personnel increased $.13, or +0.3%, to $28.75, a YoY gain of 5.0%, tying April for the lowest YoY gain since June of 2021.
• the index of aggregate hours worked for non-managerial workers increased 0.2%.
• the index of aggregate payrolls for non-managerial workers rose 0.7%, and increased 0.1% YoY to 6.8%, just above last month’s low since March 2021. With inflation decelerating, the working/middle classes almost certainly were able to put more money in their pockets.:
• Leisure and hospitality jobs, which were the most hard-hit during the pandemic, rose 48,000, -349,000, or -2.1% below their pre-pandemic peak.
• Within the leisure and hospitality sector, food and drink establishments added 33,100 jobs, and are now only -51,700, or -0.4% below their pre-pandemic peak.
• Professional and business employment rose 64,000. This series has also been decelerating, but has stabilized in the past few months, currently up 2.5% YoY.
• The Labor Force Participation Rate was unchanged at 62.6%, vs. 63.4% in February 2020.
• The number of job holders who were part time for economic reasons declined -164,000.
• Those not in the labor force at all, but who want a job now, increased 206,000 to 5.477 million vs. its best level of 4.761 shortly before the pandemic, and vs. its post-pandemic low of 4.925 million two months ago.

SUMMARY: As is so often the case, this was a mixed report. The “employment” part was very good, both in the overall number of jobs gained, but also the increase in most leading sectors. Wages, aggregate hours, and aggregate payrolls also gained, the latter sharply. Restaurant jobs are within a month or two of finally exceeding their pre-pandemic peaks. Revisions were positive as well. But the “household” part of the report was outright negative. Jobs were actually lost, the number of unemployed increased sharply, and the unemployment rate increased sharply as well, turning higher YoY for the first time during this expansion. The number of those who want a job but aren’t actively looking also may have reversed higher. Since March 2022, the household report has only shown a gain of 1.5%, while the establishment report has shown a job increase of 3.1%. The establishment report was strong; the household report was pre-recessionary.

Landing Got Cancelled: Job Market Still at Cruising Altitude with Some Bumps by Wolf Richter -What we see in today’s jobs report: Some blowout numbers – job creation blew past expectations – and some other unexpected signs of heat, such as accelerating pay increases for nonsupervisory workers; along with signs of a little heat dissipating, such as the number of unemployed that ticked up but remained at historically low levels, and the unemployment rate that rose but remained at historically low levels. For over a year now, we’ve been waiting for the labor market to show real signs of slowing down in a significant way, not just monthly ups and downs. We’ve been waiting for the landing, and the labor market has refused to land to this day, and employers keep hiring at a surprisingly strong clip, though the Fed has jacked up interest rates to over 5%. It seems businesses and consumers have gotten used to those rates. Wages, other costs, and prices have been rising at a hot pace, now centered around 5%, with inflation having shifted from fuel and food to services. And consumers are spending their wage increases, and they’re still outspending inflation – the “drunken sailors” just won’t slow down. In May, 339,000 jobs were created by employers. Over the past three months, 850,000 jobs were created, pushing the number of payroll-type jobs to a record 156.1 million, based on surveys of establishments by the Bureau of Labor Statistics today. The three-month average, which irons out the month-to-month variability, is above the range during the hot labor market of the Good Times before the pandemic: Average hourly earnings of production and non-supervisory employees rose by 0.45% in May from April, the fastest growth rate since November. Annualized, it comes in at 5.5%. The three-month average rose by 0.40%, also the fastest since November. These workers are engineers, teachers, bartenders, technicians, drivers, retail workers, wait staff, office workers, construction workers, nurses, etc. in non-supervisory roles. They make up the bulk of total employment. The month-to-month re-acceleration in nonsupervisory wage growth might be an indication that wage growth is now stabilizing somewhere around 5% year-over-year in that category, rather than cooling off further. Year-over-year, wage growth remained at 5.0% for the second month in a row, for now ending the downward trajectory: Average hourly earnings of all employees rose by 0.33% in May, the second largest increase all year, behind only April’s increase. This includes supervisory roles. The three-month average rose by 0.33%, the highest since January. Year-over-year, earnings increased by 4.3%, roughly in line with the past three months. The higher wage growth in the nonsupervisory roles than in total employment indicates that there are bigger wage pressures and a tighter labor market below the management levels, which has been the case for months. Part of this difference in wage growth may also be due to higher minimum wages in many states and municipalities. In the small Information sector (which covers some tech and social media companies, while others are in different sectors), the number of jobs peaked late last year, then tapered off earlier this year and has now flattened out just under 3.1 million jobs. This comes after a huge hiring boom of the past two years. Now companies are rebalancing their work force to trim off the excess in some corners and hire in others. So here, in this small information sector, the heat has started to fade: Total jobs, from payroll-type jobs to gig work, fell by 310,000 in May, after a huge jump in March and a smaller increase in April, according to the Household Survey by the BLS that tracks all types of work. The data is very volatile from month to month, with some huge spikes, for example in January (+894,000) and March (+577,000) and some big drops, for example in May this year and in October and June last year. For the three months combined, the number of jobs rose by 406,000, for a three-month average of 135,000. It shows a slowdown in growth from earlier this year, but it’s far higher than a couple of periods last year with negative readings. The total number of workers, from employees at companies to the self-employed, exceeded 160 million for the first time in January 2023. This is the three-month average of total employment, which irons out some of the ups and downs

Comments on May Employment Report - The headline jobs number in the May employment report was above expectations, and employment for the previous two months was revised up by 93,000, combined. The participation rate was unchanged, the employment population ratio declined slightly, and the unemployment rate increased to 3.7%. Although the establishment survey (Current Employment Statistics - CES) showed a gain of 339 thousand jobs, the household survey (Current Population Survey - CPS) showed a loss of 310 thousand employed, pushing up the unemployment rate in May (based on CPS). Leisure and hospitality gained 48 thousand jobs in May. At the beginning of the pandemic, in March and April of 2020, leisure and hospitality lost 8.2 million jobs, and are now down 349 thousand jobs since February 2020. So, leisure and hospitality has now added back about 96% all of the jobs lost in March and April 2020. Construction employment increased 25 thousand and is now 320 thousand above the pre-pandemic level. Manufacturing employment decreased 2 thousand jobs and is now 199 thousand above the pre-pandemic level. In May, the year-over-year employment change was 4.06 million jobs. Since the overall participation rate is impacted by both cyclical (recession) and demographic (aging population, younger people staying in school) reasons, here is the employment-population ratio for the key working age group: 25 to 54 years old. The 25 to 54 participation rate was increased in May to 83.4% from 83.3% in April, and the 25 to 54 employment population ratio decreased to 80.7% from 80.8% the previous month. Both are slightly above the pre-pandemic levels and suggest all of the prime age workers have returned to the labor force. The graph shows the nominal year-over-year change in "Average Hourly Earnings" for all private employees from the Current Employment Statistics (CES). There was a huge increase at the beginning of the pandemic as lower paid employees were let go, and then the pandemic related spike reversed a year later. Wage growth has trended down after peaking at 5.9% YoY in March 2022 and was at 4.3% YoY in May. Year-over-year wage growth will likely slow further over the next couple of months since wage growth was strong in June and July 2022. The number of persons working part time for economic reasons decreased in April to 3.739 million from 3.903 million in April. This is below pre-recession levels. These workers are included in the alternate measure of labor underutilization (U-6) that increased to 6.7% from 6.6% in the previous month. This is down from the record high in April 22.9% and up slightly from the lowest level on record (seasonally adjusted) in December 2022 (6.5%). (This series started in 1994). This measure is below the level in February 2020 (pre-pandemic). This graph shows the number of workers unemployed for 27 weeks or more. According to the BLS, there are 1.188 million workers who have been unemployed for more than 26 weeks and still want a job, up from 1.156 million the previous month. This is at pre-pandemic levels. Summary: The headline monthly jobs number was well above expectations, and employment for the previous two months was revised up by 93,000, combined. Overall, this was another strong employment report, however, the unemployment rate increased due to fewer people employed in the household survey.

Historic gains: Low-income workers scored in the Covid economy – - For the past three years, low-income workers have made historic gains in wages even after inflation, reversing the trend of advances for upper-income workers and stagnating pay for laborers that dominated the previous four decades, according to a POLITICO analysis of data from the U.S. Labor Department.The gains were the product of a series of dramatic changes in the structure of the labor market and government policies to aid the economy during the pandemic. Fueled by the resulting worker shortage, for example, one of the lowest tiers of earners — people making an average of $12.50 per hour nationally — saw their pay grow nearly 6 percent from 2020 to 2022, even after factoring in inflation. That’s significantly bigger than what low-wage workers got during the entire administration of President Barack Obama, following the Great Recession.At the same time, price spikes have eaten away raises for the highest-earning employees, leading their inflation-adjusted income to drop roughly 5 percent over the past couple of years. The result, according to one new paper: One-quarter of the 40-year growth in the yawning gap between higher-income workers and lower-income workers has disappeared in just a few years.Now, however, those gains are in jeopardy, as the government moves to end bipartisan pandemic-era spending that injected trillions of dollars into the economy, spurred consumer spending and put workers in ultra-high demand. The Federal Reserve has been moving to slow down the economy, worried that wages for all workers are rising too fast for inflation fall back down to their goal of 2 percent and enacting a series of interest-rate hikes designed to curb economic activity.The resulting slowdown will hurt low-wage workers disproportionately. In recent months, the number of people quitting their jobs and the number of vacancies posted by employers have drifted downward, suggesting less mobility and fewer opportunities for wage growth.This presents a clear inflection point for the Biden administration and its allies in Congress. While the administration has been largely supportive of the Fed’s moves as households strain under the burden of inflation, progressive lawmakers and economists have questioned whether progress for low-wage workers is being sacrificed in pursuit of price stability.

Americans’ Ability to Pay for Emergency Expenses or Three-Month Job Loss with Cash/Cash Equivalent, by Selling Assets, by Borrowing, or Not at All by Wolf Richter -The Federal Reserve released the new results of its annual “Survey of Household Economics and Decisionmaking” (SHED) this week.It includes the infamous section on how American adults would pay for that hypothetical $400 emergency expense, such as a car repair – the results of which are often ridiculously misrepresented in the headlines.It also includes a section on how Americans would deal with three months of expenses if they lose their jobs.And this year, the survey had a new question: What is the largest emergency expense individuals could handle right now?In the report, there are essentially four categories of dealing with an emergency expense:

• With cash or its cash equivalent
• By selling assets
• By Borrowing
• Not being able to cover it by any method.

“Cash or its cash equivalent” is defined by the report as “exclusively using cash, savings, or a credit card paid off at the next statement (referred to, altogether, as ‘cash or its equivalent’).”We’ll start with the survey’s new question: What is the largest emergency expense individuals could handle right now using only “savings,” as opposed to borrowing or selling assets? These are the results:

• 46% could handle $2,000 or more
• 11% could handle $1,000 to $1,999
• 11% could handle $500 to $999
• 14% could handle $100 to $499
• 18% could handle less than $100.

And there is a twist the came with the new question: The same survey also asks how they could pay an unexpected $400 expense: 63% said they would pay for it with cash or the equivalent (not borrowing and not selling assets).And this discrepancy between the 68% who could “handle” an expense of at least $500 to $999 with cash or cash equivalent, and the 63% who would “cover” a $400 emergency expense with cash or equivalent is explained by the Federal Reserve’s report, “suggesting that some people do choose to pay with other methods, even if they have cash savings available to them.”The likely explanation, according to the report, is that they want to keep the cash on hand for other emergencies, and that they will borrow or sell assets to cover the current emergency.

Check your phone: Popular Android app reportedly started spying on users, making recordings– A screen recording app available in the Google Play store that was installed over 50,000 times functioned normally for months before it started spying on users, researchers say. The app, iRecorder – Screen Recorder, was first uploaded to the Google Play store on September 19, 2021, according to Lukas Stefanko, a malware researcher with cybersecurity firm ESET. Stefanko said that the app had no harmful features until a later update changed the code, likely in August 2022. After that date, malicious code allowed bad actors to make secret audio recordings and secretly transfer images, videos, saved web pages, and other files off of devices, according to ESET. Anyone who had downloaded the app before August 2022, might still have been exposed if they updated the app manually or automatically. It’s not yet clear if the developer or another actor is responsible for the update that converted the app into a Trojan horse. “The app’s specific malicious behavior – exfiltrating microphone recordings and stealing files with specific extensions – tends to suggest that it is part of an espionage campaign,” Stefanko wrote. “However, we were not able to attribute the app to any particular malicious group.” While it’s not unheard of for an app to have harmful features, Stefanko wrote that is rare for an app to function legitimately for months before targeting the private data of Android owners.

Chicago Sees Deadliest Memorial Day Weekend In 8 Years Despite Hundreds Of Yellow-Vested 'Peacekeepers' In Streets - This Memorial Day weekend in Chicago was the deadliest the Democrat-run and crime-plagued city has seen in eight years, the Chicago Sun-Times has reported Tuesday.One killing even happened close to Mayor Brandon Johnson's own residence. Going back to Friday evening, "at least 11 people had been killed and another 46 wounded since early Friday evening" resulting in a death toll that was the "highest since 2015, when 12 people were killed," according to the report. This marks 57 total casualties across the city from either shootings or knifings. The newspaper records that the prior high came in 2016: "The total number shot, however, was still far below the 71 people wounded by gunfire over the 2016 holiday weekend," it notes.Last year's Memorial Day weekend had marked a 5-year high. For the 2022 holiday weekend, 51 people total had ben reported shot, including 9 killed.The eight-year high in deaths occurred despite that ahead of the weekend community activists had planned peace marches. The idea was that yellow-vested 'peacekeepers' would fan out and have a prominent presence in "hot spots" where violence is frequent in the south and west sides of the city. The marches and activism appeared to have little effect.

11-year-old Mississippi boy shot by police after calling emergency services --In the early morning hours on May 20, an unarmed and harmless 11-year-old boy was shot in his Mississippi home by a police officer.Police arrived at the residence of Nakala Murry in Indianola, Mississippi in response to a report of a domestic disturbance. Murry instructed her son Aderrien to contact the police after the father of another of Murry’s children arrived and became “irate.” Murry, whose daughter and two-year-old nephew were also present at the house, felt threatened and hoped that the police would “stop it right there.”According to the family’s attorney, Carlos Moore, two Indianola Police Department officers arrived at the scene, with one kicking on the front door until Murry opened it. Murry said that one of the officers, subsequently identified as Greg Capers, “had his gun drawn at the front door and asked those inside the home to come outside.”Murry exited the home before Aderrien, after which, as she told ABC’s Good Morning America, she “heard a shot, and I saw my son run out towards where we were.” (The father, according to Murry, had left the home by then.)Moore said that Capers “shot him immediately when his hands were up” and as he came “around the corner” in the house to walk out. Murry said that she ran to her son, who asked her in shock, “Why did he shoot me? What did I do?”An ambulance was dispatched, and Aderrien was treated at the scene. He was then airlifted 100 miles (161 km) southeast to the University of Mississippi Medical Center in Jackson, Mississippi and rushed to an intensive care unit (ICU).Aderrien was shot in the right side of his chest; the bullet collapsed his lung, fractured multiple ribs and lacerated his liver. He was placed on a ventilator and a chest tube had to be inserted to treat his wound. He was released from the hospital four days later. The Mississippi Bureau of Investigation (MBI), which is investigating the shooting, stated that, “No officers were injured during the incident.”

Utah district bans Bible in elementary and middle schools 'due to vulgarity or violence' (AP) — The Good Book is being treated like a bad book in Utah after a parent frustrated by efforts to ban materials from schools convinced a suburban district that some Bible verses were too vulgar or violent for younger children. And the Book of Mormon could be next. The 72,000-student Davis School District north of Salt Lake City removed the Bible from its elementary and middle schools while keeping it in high schools after a committee reviewed the scripture in response to a parental complaint. The district has removed other titles, including Sherman Alexie’s “The Absolutely True Diary of a Part-Time Indian” and John Green’s “Looking for Alaska,” following a 2022 state law requiring districts to include parents in decisions over what constitutes “sensitive material.” On Friday, a complaint was submitted about the signature scripture of the predominant faith in Utah, The Church of Jesus Christ of Latter-day Saints, widely known as the Mormon church. District spokesperson Chris Williams confirmed that someone filed a review request for the Book of Mormon but would not say what reasons were listed. He also would not say whether it was from the same person who complained about the Bible, citing a school board privacy policy. Representatives for the church declined to comment on the challenge. Members of the faith also read the Bible. Williams said the district doesn’t differentiate between requests to review books and doesn’t consider whether complaints may be submitted as satire. The reviews are handled by a committee made up of teachers, parents and administrators in the largely conservative community. The committee published its decision in an online database of review requests and did not elaborate on its reasoning or which passages of the Bible it found overly violent or vulgar.

Texas High School Delays Graduation After 85% Of Class Failed Requirements -- Students at Marlin High School took a 'victory' lap on Wednesday and had been preparing for graduation later in the week, when Marlin ISD Superintendent Darryl Henson announced that just five out of 33 students would be eligible to pass following an internal audit of attendance, grades and credits. Seniors in the school's alternative education program were not included in the tally, NPR reports. School officials worked with students over the weekend and this week to help an additional 12 students resolve missing credits and other issues as of Wednesday evening, Henson said. But the district opted to call off the ceremony until more than those 17 students can graduate.The announcement was made via the school's Facebook page on Wednesday. According to GreatSchools.org, Marlin High School has a 2/10 rating.Just 12% of low-income and underserved students graduate prepared for college, while 37% of all other students are considered 'ready.' "It's emotional" for the affected students, said one parent during a Wednesday meeting with administrators in the school auditorium. "They get their hopes up: 'I'm graduating next week! I'm at Six Flags!'" she added, referring to the senior trip from the previous Friday.The school's deal of instruction, William Ealy, said the school notified parents that senior students weren't on track to finish on time - and that they had held an open meeting, called parents, mailed a notice and offered to host meetings."Let this be a lesson learned for all," tweeted superintendent Henson. "As we continue to go through our annual graduation audit, it's our obligation to ensure that all students have met all requirements."

"We Have A Captive Audience": Boston University To Require Students Take Social Justice Writing Courses -- Boston University recently made a new announcement that has rekindled concerns over the rising orthodoxy in our institutions of higher education. The University issued new guidelines for its mandatory writing program that will require all students to write papers with a “social justice emphasis” as a condition for graduation. The key faculty organizers celebrated the new policy and the hiring of non-white instructors as guaranteeing social justice results by making students a “captive audience” with no choice in the matter. Student will now have to choose among such choices as “Linguistic Justice…Who Cares?: Domestic Labor and the Commodification of Care,” “Asians Are People of Color: Exploring the Controversy and Identity Politics,” “Deconstructing Narratives: Stories of Race and Racism in American Cultural Memory” and “Writing Environmental Justice.” Gwen Kordonowy, the Writing Program’s associate director, said that the problem in the past was that students had a choice and some did not want to be forced into writing for social justice issues. Instructors and classes could be avoided. Now, they have solved the problem by removing all choice. She heralded the hiring of non-white faculty to teach the social justice courses, using the first-year requirement to “reach every student at BU.” With that, she explained, “we have a captive audience. We never worry about enrollment.” Writing Program Director Sarah Hardy said that the “cluster hiring” of minority faculty and the mandatory course requirements are meant to finally end the “predominance of white faculty in academia” by limiting the choices of students. The BU announcement includes a statement from instructor Swati Rani that she will be teaching students to apply the “language around anti-racism” and emphasized that “all of my students are required to develop a voice of advocacy in their final papers and projects that are directly connected to their intersectional lives at BU.” There is every reason to celebrate classes that add different perspectives and subjects to the curriculum. It is the mandatory element that is troubling if students will be required to write in favor of approved social justice causes. What happens to students in this “captive audience” who do not support social justice causes? These are subjects that touch on deep religious, social, and political values in our society.

University Of Colorado Declares Misgendering An "Act Of Violence" - The University of Colorado Boulder (Boulder) is under fire this week for a statement on the “Pride Office” website stating that misgendering people can be considered an “act of violence.” The guide on pronouns is reportedly the work of students associated with the office and states that “choosing to ignore or disrespect someone’s pronouns is not only an act of oppression but can also be considered an act of violence.” It is a familiar position for many in higher education. Opposing viewpoints are now routinely declared to be violence. That allows professors and students to rationalize their own act of violence or censorship. The most vivid example was recently seen at Hunter College, which is part of the CUNY system. Professor Shellyne Rodríguez recently was fired after holding a machete to the neck of a New York Post reporter and threatened to “chop you up.” However, Hunter College decided not to fire her over a prior incident in which she trashed a pro-life table run by students. Just a week earlier, a professor stopped another “violent” display of pro-life views in New York. Professor Renee Overdyke of the State University of New York at Albany shut down a pro-life display and then resisted arrest. At the University of California at Santa Barbara, feminist studies associate professor Mireille Miller Young criminally assaulted pro-life advocates on campus, and later pleaded guilty to the crime. She was defended by faculty and students, including many who said she was “triggered” by a pro-life display and that pro-life advocates were “terrorists” who did not deserve free speech. It is that easy. You simply declare opposing views “violent” and then you can justify your own violence as a matter of self-defense.

South Dakota Governor Tells Higher Education Board To Remove Mandates On Preferred Pronouns --South Dakota Gov. Kristi Noem issued a letter on May 25 to the governing board that oversees the six public universities in the state. In it, she lamented about the situation of higher education in the country, and challenged the board to a series of actions to “show the nation what quality higher education is supposed to look like.”Among several points, the Republican governor told the board it should ban drag shows on university campuses, and, separately, remove all preferred pronouns in school materials, as well as remove all mandates that compel people to use preferred pronouns.However, what appears to be the priority is the first point of action she raised, which is that the board should aim to raise graduation rates across its six universities to 65 percent by 2028, compared to the current graduation rate of 47 percent. Meanwhile, in 2020, the national graduation rate was 63 percent.“At the K-12 level, we are taking steps to improve our standards and expand school choice in South Dakota so that all kids have access to a high-quality education that prepares them for whatever comes next after high school,” Noem told the board in her letter (pdf).“For those who choose to start attending a university after graduating, less than half are graduating. We must do better than that. I look forward to working with you all on ideas to improve our graduation rates.”

Colleges squirm under anti-diversity, equity and inclusion pressure - Colleges are attempting to find ways to save their diversity, equity and inclusion (DEI) initiatives as Republican-led states advance efforts to shut down the programs. Multiple red states have introduced or passed legislation targeting certain aspects of DEI in universities, from mandatory diversity statements to entire offices, causing confusion and fear for faculty and staff. Texas lawmakers Sunday approved a final version of Republicans’ sweeping anti-DEI measure, sending it to the desk of Gov. Greg Abbott (R), who is expected to sign it, making Texas the second state to declare full-on war against the programs. Florida Gov. Ron DeSantis (R) signed similar legislation earlier this month. That move left Florida colleges scrambling. “I know that, for coursework and for some of the things, they’re just changing the names of committees as opposed to, you know, doing away with them altogether,” said Allan Barsky, professor at Florida Atlantic University’s Sandler School of Social Work. In Florida’s legislation, public universities are not allowed to use funding on DEI initiatives, aside from programs or activities that are needed to comply with federal laws. “If you look at the way this has actually been implemented across the country, DEI is better viewed as standing for discrimination, exclusion and indoctrination, and that has no place in our public institutions,” DeSantis, who Wednesday made his 2024 White House bid official, said at the legislation’s signing. “This bill says the whole experiment with DEI is coming to an end in the state of Florida. We are eliminating the DEI programs,” he added. Florida professors in general education courses are also not allowed to “distort significant historical events or include a curriculum that teaches identity politics … or is based on theories that systemic racism, sexism, oppression, and privilege are inherent in the institutions of the United States and were created to maintain social, political, and economic inequities.” The law goes into effect July 1, and universities are quickly working to decipher what it specifically means for them as experts warn that its broadness could encompass a variety of essential programs for students. It is difficult for schools to pin down exactly which areas they need to address in compliance with the law, and some are holding off on rash decisions before knowing how the state will enforce it. “One of the things that diversity committees look at are access issues for students, and so we’ve got students with diverse abilities and disabilities,” Barsky said, pointing out efforts made in his school such as replacing desks that were not wheelchair accessible.

Most in US say don't ban race in college admissions but its role should be small: AP-NORC poll - (AP) — As the Supreme Court decides the fate of affirmative action, most U.S. adults say the court should allow colleges to consider race as part of the admissions process, yet few believe students’ race should ultimately play a major role in decisions, according to a new poll.The May poll from The Associated Press-NORC Center for Public Affairs Research found that 63% say the Supreme Court should not block colleges from considering race or ethnicity in their admission systems. The poll found little divide along political or racial lines.But those polled were more likely to say factors including grades and standardized test scores should be important, while 68% of adults said race and ethnicity should not be a significant factor.The poll reflects general support for affirmative action even as the future of the practice remains in doubt. The Supreme Court is expected to rule soon on lawsuits challenging admissions systems at Harvard University and the University of North Carolina. With a conservative majority on the court, many college leaders are bracing for a decision that could scale back or eliminate the use of race in admissions. Americans’ views on race in admissions — that it should be permitted but only be a small factor — generally line up with the way colleges say they use it.Many colleges, especially selective ones, say race is one of many factors that officials can weigh when choosing which students get accepted. They say it is not a large influence but may sometimes give an edge to underrepresented students in close decisions.Critics, however, say the impact is much stronger than colleges let on. A 2009 analysis by sociologist Thomas Espenshade at Princeton University found that, at highly selective private colleges, the boost for Black applicants was equivalent to 310 points on the SAT exam, compared to a 130-point bump given to poor students.

Students and Faculty at Ohio State Respond to a Bill That Would Restrict College Discussions of Climate Policies - One year into her Ph.D. program at Ohio State University, Keely Fisher wonders if she belongs here.The problem has nothing to do with Ohio State and everything to do with the Ohio General Assembly and a proposal that would regulate higher education. The wide-ranging bill includes a provision that designates climate policy as a “controversial belief or policy” and says faculty must “encourage students to reach their own conclusions about all controversial beliefs or policies and shall not seek to inculcate any social, political, or religious point of view.”“Is this going to force me to leave?” Fisher asked, interviewed at the school’s main library. She came to Ohio to be part of the university’s School of Environment and Natural Resources and worries that the bill, if it becomes law, would hurt her program’s ability to recruit students and faculty, and would introduce uncertainty into the classroom about how climate change can be discussed. If the proposal had been law when she was deciding where to enroll, it would have steered her to a different university, she said.The bill is an example of a national trend of Republican-led states seeking to rein in what they see as runaway liberal politics in higher education—a sentiment that threatens to undermine the rigor and accuracy of teaching about arguably the greatest threat to the environment and economy.“You can say gravity isn’t true, but if you step off the cliff, you’re going down,” said Katharine Hayhoe, an atmospheric scientist who teaches at Texas Tech University and a well-known writer and commentator about climate change and responding to climate denial. “And if you teach other people that gravity is not true, you are morally responsible for anything that happens to them if they make decisions based on the information you provided.”The Chronicle of Higher Education has tallied 35 proposals across the country that limit the use of diversity programs at colleges and universities, with many of the bills taking additional steps to regulate what happens on campus. So far, Florida and North Dakota are the only states where the bills have been signed into law, and those laws do not have provisions about curriculum dealing with climate policies.Florida’s Senate Bill 266, signed by Gov. Ron DeSantis this month, says colleges cannot spend state or federal money on programs that advocate for diversity, equity and inclusion. It also bans courses that teach theories “that systemic racism, sexism, oppression and privilege are inherent in the institutions of the United States.”The Ohio bill bans state colleges and universities from requiring diversity, equity and inclusion training for students and staff; bans unions at at colleges and universities from going on strike; requires the use of student surveys in evaluating faculty; requires all students to take an American government or history course; and has a variety of provisions aimed at protecting students and faculty whose views may be out of line with those of the administration or a majority of people on campus.The measure has passed the Ohio Senate and is now being considered by the Ohio House, both of which have large Republican majorities. Gov. Mike DeWine is also a Republican. “Academics want to protect their woke fiefdom so they can continue to churn out like-minded and intolerant opponents of intellectual diversity,” said Sen. Jerry Cirino, a Cleveland-area Republican and lead sponsor of the bill, in a guest column last month in The Columbus Dispatch.His office did not respond to a request for an interview.

Ohio State University does not have active attacker | NBC4 — Ohio State University is not under any sort of threat, a university spokesperson said Friday afternoon, after a vendor sent out an “errant” Buckeye Alert to community members. The alert message that went out via text, online and on social media around 2 p.m. read “Buckeye Alert! Active Attacker reported on/near the OSU Columbus campus. Secure in place: RUN,HIDE,or, as a last resort,FIGHT! (sic) Police responding. More info soon.” The accidental text alert sent out to Ohio State University students on June 2, 2023. (NBC4 Screenshot) Seven minutes later, OSU Emergency Management and OSU Police clarified that a vendor accidentally activated the systemwide alert while it was undergoing maintenance.

Denials of Health Insurance Claims Are Rising — And Getting Weirder --Millions of Americans in the past few years have run into this experience: filing a health care insurance claim that once might have been paid immediately but instead is just as quickly denied. If the experience and the insurer’s explanation often seem arbitrary and absurd, that might be because companies appear increasingly likely to employ computer algorithms or people with little relevant experience to issue rapid-fire denials of claims — sometimes bundles at a time — without reviewing the patient’s medical chart. A job title at one company was “denial nurse.”It’s a handy way for insurers to keep revenue high — and just the sort of thing that provisions of the Affordable Care Act were meant to prevent. Because the law prohibited insurers from deploying previously profit-protecting measures such as refusing to cover patients with preexisting conditions, the authors worried that insurers would compensate by increasing the number of denials.And so, the law tasked the Department of Health and Human Services with monitoring denials both by health plans on the Obamacare marketplace and those offered through employers and insurers. It hasn’t fulfilled that assignment. Thus, denials have become another predictable, miserable part of the patient experience, with countless Americans unjustly being forced to pay out-of-pocket or, faced with that prospect, forgoing needed medical help.A recent KFF study of ACA plans found that even when patients received care from in-network physicians — doctors and hospitals approved by these same insurers — the companies in 2021 nonetheless denied, on average, 17% of claims. One insurer denied 49% of claims in 2021; another’s turndowns hit an astonishing 80% in 2020. Despite the potentially dire impact that denials have on patients’ health or finances, data shows that people appeal only once in every 500 cases.Sometimes, the insurers’ denials defy not just medical standards of care but also plain old human logic. Here is a sampling collected for the KFF Health News-NPR “Bill of the Month” joint project.

• Dean Peterson of Los Angeles said he was “shocked” when payment was denied for a heart procedure to treat an arrhythmia, which had caused him to faint with a heart rate of 300 beats per minute. After all, he had the insurer’s preapproval for the expensive ($143,206) intervention. More confusing still, the denial letter said the claim had been rejected because he had “asked for coverage for injections into nerves in your spine” (he hadn’t) that were “not medically needed.” Months later, after dozens of calls and a patient advocate’s assistance, the situation is still not resolved.
• An insurer’s letter was sent directly to a newborn child denying coverage for his fourth day in a neonatal intensive care unit. “You are drinking from a bottle,” the denial notification said, and “you are breathing on your own.” If only the baby could read.
• Deirdre O’Reilly’s college-age son, suffering a life-threatening anaphylactic allergic reaction, was saved by epinephrine shots and steroids administered intravenously in a hospital emergency room. His mother, utterly relieved by that news, was less pleased to be informed by the family’s insurer that the treatment was “not medically necessary.” As it happens, O’Reilly is an intensive-care physician at the University of Vermont. “The worst part was not the money we owed,” she said of the $4,792 bill. “The worst part was that the denial letters made no sense — mostly pages of gobbledygook.” She has filed two appeals, so far without success.

Mount Sinai Hospital in New York assessed token fine for persistent understaffing - An arbitrator has fined Mount Sinai Hospital in New York $127,057 for engaging in a “persistent pattern” of understaffing for three months in its neonatal intensive care unit (NICU). Although the penalty is the first of its kind in New York, it represents little more than the cost of doing business for the hospital. Nor does it resolve the problem of understaffing, which Mount Sinai has a financial interest in maintaining. As a result, nurses and other health care personnel at the hospital will continue to be overburdened, and patients, including newborns, will remain at risk. Mount Sinai is one of the oldest and biggest teaching hospitals in the country. Located in the East Harlem neighborhood of Manhattan, it is one of eight hospitals affiliated with the Mount Sinai Health System. NICU nurses care for highly vulnerable, often premature infants. According to their contract at Mount Sinai, these nurses are to be assigned no more than two patients at a time. For extremely ill infant patients, the ratio is required to be one to one. The unit also is required to have two additional nurses without assigned patients, so that they can step in when needed. NICU nurse Meghan Hurlbut told Politico, “This is about life and death for some of our patients.” Consistently overburdened, Mount Sinai’s NICU nurses recorded their staffing levels and took the hospital to arbitration. The arbitrator found that from January 15 through April 15, Mount Sinai violated these terms continuously and that the NICU often was understaffed by as many as six nurses. This meant that, on average, 24 nurses worked simultaneously on the unit. In addition to being understaffed, the unit also was over its capacity. Although the unit has 46 beds, it typically treated 52 patients daily.

Night shift work, binge drinking linked to increased COVID risk in nurses -Working the night shift or binge drinking may double the risk of COVID-19 infection, according to a study of nurses published this week in Alcohol: Clinical and Experimental Research. Poor sleep quality and binge drinking have been associated with COVID-19 infections, likely because both promote a pro-inflammatory state.Because nurses were regularly exposed to COVID during the pandemic, had a high-stress job, and work during overnight shifts, the authors of the study hypothesized that shift work and alcohol misuse would be associated with COVID-19 infections.Results were based on 750 responses from members of the American Nurses Association, who were asked to complete an online survey about alcohol use, sleep patterns, chronotype, and history of COVID-19 infections. A chronotype is someone's preferred sleep pattern, such as being an early bird or night owl. The online survey was available from May 2020 to April 2021.The mean age of study participants was 39 years. Ninety percent of respondents were women.Twenty-five percent of the respondents met the criteria for alcohol misuse, with 5% classified as binge drinkers, or drinking more than six drinks in one sitting. Alcohol misuse was more than one drink per day for women, two drinks per day for men, or drinking more than four and five drinks in one sitting for women and men, respectively. The authors found the night shift was associated with more than double the odds of COVID-19 infection compared with the standard shift (odds ratio [OR], 2.67; 95% confidence interval [CI], 1.18 to 6.07). Binge drinkers had twice the odds of COVID-19 infection of those with low-risk features (OR, 2.08; 95% CI; 0.75 to 5.79).

The Fast-Spreading New COVID-19 Subvariant XBB Is Part of a ‘New Class’ of Omicron MSN. ma: “Not a bad piece for msn…even has a “how to mask” video embedded. Maybe it’s becoming ok to talk publicly about?…..”

Case report: Post-COVID new-onset neurocognitive decline with bilateral mesial-temporal hypometabolism in two previously healthy sisters Frontiers in Pediatrics -- The outcomes of severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2) infection are not restricted to acute coronavirus disease 2019 (COVID-19) (e.g., survival vs. death), but there is increasing understanding that patients can develop a wide range of postacute and long-term consequences (1). Long COVID (or post-COVID condition or post-acute COVID syndrome) is among the most discussed outcomes. The post-COVID-19 condition occurs in individuals with a history of probable or confirmed SARS-CoV-2 infection, usually 3 months from the onset of COVID-19 with symptoms lasting at least 2 months that cannot be explained by an alternative diagnosis. Common symptoms include fatigue, shortness of breath, cognitive dysfunction, and others, which generally impact everyday functioning. Symptoms may be new onset following initial recovery from an acute COVID-19 episode or persist from the initial illness. Symptoms may also fluctuate or relapse over time. These symptoms have a negative impact on daily routine (2). Long COVID has also been widely and globally reported in children, although several unknowns remain. We described the story of two sisters—with high social and academic performance before their severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2) infection—who reported severe neurocognitive problems, initially classified as psychologic pandemic distress and eventually found to have significant brain hypometabolism. We provided a detailed clinical presentation of neurocognitive symptoms in two sisters with long COVID associated with brain hypometabolism documented in both sisters. We believe that the evidence of objective findings in these children further supports the hypothesis that organic events cause persisting symptoms in a cohort of children after SARS-CoV-2 infection. Such findings highlight the importance of discovering diagnostics and therapeutics.

More than 1 in 6 unvaccinated COVID survivors report symptoms for up to 2 years - Up to 18% of unvaccinated COVID-19 survivors have persistent symptoms as long as 2 years after infection, suggests an ongoing Swiss study published yesterday in BMJ. University of Zurich researchers led the observational study, a comparison of 1,106 unvaccinated adults 6, 12, 18, and 24 months after COVID-19 infection with 628 uninfected controls. Infected participants were, on average, 50 years old and had tested positive for wild-type COVID-19 from August 6, 2020, to January 19, 2021; 86.0% had had symptoms, and 4.3% had been hospitalized for their infections. Uninfected participants were, on average, 65 years old. Just over half (51.2%) of participants were women. Of all participants, 55.3% reported a return to health within 1 month after infection, and 17.6% said they had recovered within 1 to 3 months. At 6 months, 22.9% of participants said they hadn't recovered, declining to 18.5% at 12 months and 17.2% at 24 months. Those reporting symptoms at 6 months said their symptoms had mild (16.2%), moderate (3.6%), or severe (2.7%) effects on their health. At 24 months, the severity of health impairment declined, with 10.4% reporting mild, 3.9% reporting moderate, and 1.9% experiencing severe health impairment. Most participants reported that they continued to recover (68.4%) or had better overall health (13.5%) over time. But 5.2% said their health worsened, and 4.4% had periods of both recovery and regression. A total of 8.9% of participants said they had symptoms at all four follow-up times, and 12.5% reported alternating symptomatic and symptom-free periods. Participants who reported symptoms or worsened symptoms at all follow-up points tended to be 65 or older (45.7% vs 34.1%) or have underlying medical conditions (58.8% vs 27.5%). Relative to participants with unchanged or worse health status, a higher proportion of those who improved were younger than 65 years (55.6% vs 40.1%), and a lower percentage had post-exertion malaise (27.3% vs 40.6%) at 6 months. More COVID-19 survivors than controls had symptoms at 6 months (adjusted risk difference [excess risk], 17.0%). Excess risk for some symptoms in infected participants was 2% to 10%, with the greatest excess risks for altered taste or smell (9.8%), post-exertion malaise (9.4%), fatigue (5.4%), shortness of breath (7.8%), and impaired concentration (8.3%) and memory (5.7%). The prevalence of symptoms was roughly the same at 6 months and 24 months—51.7% and 51.0%, respectively. But the prevalence of symptoms considered related to COVID-19 fell from 28.9% at 6 months to 20.3% at 12 months and 18.1% at 24 months. Most participants reporting COVID-19 symptoms (89.2%) also reported nonrecovery at 24 months, but 5.8% said they had fully recovered. Fatigue, post-exertion malaise, altered taste or smell, shortness of breath, and impaired concentration or memory were the most common symptoms at all time points.

COVID survivors with depressive, cognitive symptoms show signs of brain inflammation - Patients with persistent symptoms of depression and cognitive impairment after a mild to moderate COVID-19 infection had elevated levels of a protein indicating inflammation of the brain, finds a Canadian case-control study published yesterday in JAMA Psychiatry.The team led by researchers from the Centre for Addiction and Mental Health in Toronto used positron emission tomography (PET) to compare levels of translocator protein, a marker for gliosis (inflammation of the brain), in 20 participants with persistent symptoms of depression and cognitive impairment with those of 20 healthy controls.The study was conducted from April 1, 2021, to June 30, 2022. Average participant age was 32.9 years, and roughly 60% were women.Translocator protein volume in the brain regions of interest was higher in participants with depressive and cognitive symptoms than in controls (mean difference, 1.51; 1.51 divided by 9.20, 17%).The difference was most pronounced in two regions of the brain: the ventral striatum (mean difference, 1.97; 1.97 divided by 8.87, 22%) and dorsal putamen (mean difference, 1.70; 1.70 divided by 8.37, 20%)."Gliosis may be consequent to inflammation, injury, or both, particularly in the ventral striatum and dorsal putamen, which may explain some persistent depressive and cognitive symptoms, including slowed motor speed, low motivation or energy, and anhedonia [reduced ability to experience pleasure]," the authors wrote.In a related commentary, Alexander Gerhard, MD, of the University of Manchester in England, said the study was limited by PET's signal, which is not restricted to microglial cells."To target neuroinflammatory changes therapeutically, we will need a much more detailed understanding of microglial activation at different time points of neurological disorders," Gerhard wrote. "Not surprisingly, relatively simplistic attempts to suppress microglial activation have so far not resulted in clinical meaningful results."

The Brain and Long Covid Eric Topol --Ever since the UK Biobank study that showed brain atrophy, loss of grey matter, and cognitive decline in about 400 people who had Covid compared with matched controls, via baseline (pre-Covid) and subsequent (~3 years later) MRI scans, there has been significant worry about the impact this virus has on the brain. Two new studies, both from researchers in Germany, illuminate the mechanisms for inflammation of brain tissue which is persistent and occurs even in patients with a mild Covid illness. Importantly, these were studies of people with Covid, not specifically individuals who were suffering from Long Covid. Newer insights in the past decade about inflammation and the brain have pointed to the borders of the brain—the skull bone marrow-meninges axis—as a niche reservoir that can drive the process. This is where a high density of circulating immune cells reside, patrolling the brain tissue via skull microchannels and lymphatic tissue.In a comprehensive imaging and omics study of mice and humans, the skull, brain and meninges, along with the vertebra and pelvis bones, were assessed from 20 patients who had died from non-Covid causes but had previously documented Covid. Long after their Covid infection (some but not enough details are available in the supplemental material), most (12 of 20) of these individuals had marked accumulation of the SARS-CoV-2 spike protein in the skull-meninges and brain tissue, not found in controls. Only the spike protein, not other parts of the virus, was found in brain parenchyma. In the mouse model, when the spike protein was injected, there was brain cell injury, death and persistent inflammation. As opposed to the other bones and marrow assessed in both humans and mice, there was a differential inflammatory picture in the skull, reflecting the importance of this immunologic niche reservoir.A very different study of the impact of mild to moderate Covid was undertaken by the Hamburg group, using comprehensive magnetic resonance imaging (MRI) to assess 11 different metrics (abbreviations below and correlations with histology, pathology) in 223 unvaccinated people who had Covid compared with 223 controls with no evidence of Covid infections.Unlike the UK Biobank study, which was mostly in patients who had moderate Covid (15 patients were hospitalized in that report), 56% had only mild Covid. The images were obtained at about 10 months after Covid and the principal MRI findings were related to two important brain white matter neuro-inflammatory markers—-extracellular free water (FW above) and mean diffusivity (MD).The 2 MRI findings, mean diffusivity and free water, both indicative of brain inflammation, highlighted in red, exhibited significant differences between the individuals with Covid vs control.There were no differences in neuropsychiatric scores, including lack of evidence of worse cognitive function. The MRI inflammatory marker abnormalities were so pronounced that machine learning could accurately differentiate which scans were from the Covid patients vs the control group, as shown below. Unlike the UK Biobank study, there was no evidence of cortical atrophy.

Analysis: Mother-to-newborn COVID-19 transmission infrequent - A meta-analysis of 26 studies involving mother-to-child COVID-19 transmission in the first 30 days after birth reveals an overall estimate of SARS-CoV-2 infection among infants of 2.3%. The study was published today in Scientific Reports. During the initial months of the COVID pandemic, many hospitals stopped practices known to promote breastfeeding and maternal bonding when the mother had an active COVID-19 infection at delivery, including infant room-in, skin-to-skin contact, and breastfeeding itself. Subsequent studies have shown breastmilk is unlikely to transmit COVID-19 to infants, and indeed contains neutralizing antibodies when mothers have an active infection. The current study was based on outcomes seen among of 2,653 mothers with SARS-CoV-2 and 2,677 infants included in the 26 studies, all based in high-income countries. The risk of infection was similar for mothers who had newborns room-in with them at the hospital, and among newborns who went to a nursery following birth. The overall estimate of SARS-CoV-2 infection among infants was 2.3% (95% confidence interval [CI], 1.4% to 3.2%). Data from studies with (1.4%; 95% CI, 0.8% to 2.0%) and without (1.3%; 95% CI, 0.0% to 2.7%) rooming-in provided similar risk of infection, the authors said."Mother-to-child transmission in the neonatal period appears to be relatively low and consistent with previously published data," the authors concluded. "Our data support that the balance between the potential risk of postnatal transmission of the virus by the mother is decisively outweighed by the well-known benefits of skin-to-skin contact, rooming-in practice and above all, breastfeeding."

Study: Cats can transmit COVID-19 to each other -- Cats can become infected with COVID-19 through contact with other infected animals or contaminated pens and should be considered part of the household dynamics of the virus, according to a new study inMicrobiology Spectrum."SARS-CoV-2 transmission between cats is efficient and can be sustained," said study author Wim van der Poel DVM, PhD, of Wageningen University and Research, in the Netherlands, in a press release. "Infections of cats via exposure to a SARS-CoV-2-contaminated environment cannot be discounted if cats are exposed shortly after contamination." The experiment involved 16 cats placed in different exposure groups. They were swabbed multiple times over the course of 3 weeks after exposure to either an infected cat or to a pen in which an infected cat was housed. Environmental samples were also taken.Of the eight cats exposed to the contaminated pens, only one got infected, but three of four animals exposed to another infected animal became infected. The cats displayed mild symptoms, including nasal discharge."We found that the infectiousness of contaminated surfaces would decay within 8.8 (95% CI [confidence interval] = 1.5 to 31.2) hours, making transmission via contaminated surfaces alone inefficient," the authors wrote. "We did not expose humans to the infectious cats. Our animal handlers were always fully protected," van der Poel said in the release. "We must assume that cat owners can be infected by SARS-CoV-2 infected cats since these cats excrete infectious virus." In fact, Thai scientists reported such an occurrence in June 2022.

COVID spreading through schools in Australia -- In the second week of May, at least 11 schools partly or completely returned to online learning in New South Wales (NSW), Australia’s most populous state, due to large numbers of COVID-19 infections among staff and students. These outbreaks give an indication of the severity of a new pandemic wave across Australia. At Liverpool Girls High School in Sydney’s southwestern suburbs, it was reported that about 20 percent of staff had either tested positive or were experiencing symptoms of COVID. Orange High School, in the state’s mid-west, also reverted to home learning. In the local newspaper, the relieving principal said the school did not have enough teachers, despite combining classes and hiring every casual available. While some students had COVID infections, the virus had particularly impacted staff. Other schools, while not returning to online learning, asked students and staff to begin masking again. As with earlier COVID waves, working-class areas of Sydney and regional areas of the state are hardest hit. There are also reports of schools returning to temporary online learning or masking in Victoria, South Australia and Western Australia. NSW Secondary Principals Council president Craig Petersen told the Sydney Morning Herald: “Staff absences due to illness, combined with a critical shortage of casual teaching staff, meant some schools had been forced to move to remote learning.” Nevertheless, the state Labor government declared its opposition to such moves. Deputy Premier and Education Minister Prue Car said shutting down schools amid COVID outbreaks in classrooms and staffrooms was a “thing of the past.” The government’s advice for teachers is to return to school after a positive COVID test as soon as they are symptom free. One teacher, commenting on a Facebook post, said symptom-free teachers who had tested positive were under pressure to return to the classroom. Teachers and parents are using social media to report large numbers of COVID cases in schools, not just in NSW but also Victoria, Western Australia and the Australian Capital Territory (ACT). One teacher talked of the struggle to get replacement teachers, noting that “relief teachers are needed for the relief teachers—so many are sick.”

Chasing SARS-CoV-2 XBB.1.16 Recombinant Lineage in India and the Clinical Profile of XBB.1.16 Cases in Maharashtra, India - SARS-CoV-2 has evolved rapidly, resulting in the emergence of lineages with a competitive advantage over one another. Co-infections with different SARS-CoV-2 lineages can give rise to recombinant lineages. To date, the XBB lineage is the most widespread recombinant lineage worldwide, with the recently named XBB.1.16 lineage causing a surge in the number of COVID-19 cases in India. The present study involved retrieval of SARS-CoV-2 genome sequences from India (between December 1, 2022 and April 8, 2023) through GISAID; A total of 2,944 sequences were downloaded, of which 2,856 were included in the study following data curation. The sequences from India were dominated by the XBB.1.16* lineage (36.17%) followed by XBB.2.3* (12.11%) and XBB.1.5* (10.36%). Of the 2,856 cases, 693 were from Maharashtra; 386 of these were included in the clinical study. The clinical features of COVID-19 cases with XBB.1.16* infection (XBB.1.16* cases, 276 in number) showed that 92% of those had a symptomatic disease, with fever (67%), cough (42%), rhinorrhea (33.7%), body ache (14.5%) and fatigue (14.1%) being the most common symptoms. The presence of comorbidity was found in 17.7% of the XBB.1.16* cases. Among the XBB.1.16* cases, 91.7% were vaccinated with at least one dose of vaccine against COVID-19. While 74.3% of XBB.1.16* cases were home-isolated; 25.7% needed hospitalization/institutional quarantine, of these, 33.8% needed oxygen therapy. Out of 276 XBB.1.16* cases, seven (2.5%) cases succumbed to the disease. The majority of XBB.1.16* cases who died belonged to an elderly age group (60 years and above), had underlying comorbid condition/s, and needed supplemental oxygen therapy. The clinical features of COVID-19 cases infected with other co-circulating Omicron variants were similar to XBB.1.16* cases. The study reveals that XBB.1.16* lineage has become the most predominant SARS-CoV-2 lineage in India. The study also shows that the clinical features and outcome of XBB.1.16* cases were similar to those of other co-circulating Omicron lineage infected cases in Maharashtra, India.

Covid BF.7 Variant Explained!! New Variant Symptoms & Precautions --There is havoc in China due to the Coronavirus as hundreds of people are dying every day. Hospitals are overcrowded every day. Covid is wreaking havoc in China since the restrictions were relaxed in December. Omicron’s sub-variant bf.7 is now the reason for increasing cases in this country. The infectivity rate in this variant is quite high as the R-value of the BF.7 variant is 18.That is, a person infected with this variant can spread the virus to 18 people. This is the reason why Covid is spreading so fast in China. Here in this article, we will update you about Covid BF.7 Variant, New Variant Symptoms & Precautions so read this carefully.Since the beginning of November, cases of coronavirus are increasing worldwide. The matter is under control in India now, but China is struggling very badly with it. According to some estimates, due to the recent increase, China is at risk of death of about two million people. An epidemiologist has even tweeted that 60% of China’s population could be infected in the next few months. Corona outbreak in China is causing concern for many countries, but there is no serious threat in India. There were restrictions related to Covid in China till a few months ago. Due to poor medical policy, the situation in China is getting worse. Omicron’s bf.7 variant is also making a serious impact there. While this variant had arrived in India several months back but it had no effect here.

China's 'controllable' COVID-19 surge expected to peak at 65 million cases per week - Despite warnings a new wave of coronavirus driven by the latest XBB variants could peak at up to 65 million cases per week, China's health authorities say the situation remains stable and under control. Respected respiratory disease specialist Zhong Nanshan told a conference in the southern Chinese city of Guangzhou last week modelling indicated a new wave had begun in April and that up to 40 million people per week were already likely being infected during May.The increase in cases was "expected", he said, and would likely peak in June with 65 million new cases per week.Dr Zhong said health authorities had given preliminary approval for two new XBB-specific vaccines that would be released soon. The current wave is the second since China suddenly abandoned the strict policy of COVID-zero — which had suppressed the virus for nearly three years using harsh lockdowns and frequent testing — in December.The government also stopped releasing daily figures for new COVID-19 cases and deaths about the same time.The dramatic change in approach resulted in a huge surge in cases, with an estimated 900 million new cases in just weeks and at least tens of thousands of deaths.

Global COVID-19 activity remains mixed - Cases and death continued to decline globally over the past 4 weeks, with hot spots reported in a few countries as XBB Omicron variant proportions continue to shift, the World Health Organization (WHO) said today in its latest weekly update.The agency urged caution in interpreting trends, due to reduced testing and delays in reporting. Still, it said cases over the past 28 days were down 30% and deaths over the same period were down 39% compared to the previous weeks.Activity is up, however, in two regions: the Western Pacific by 10% and Africa by 3%. Deaths declined or were stable in all six regions. In the Western Pacific, Mongolia, Palau, and the Philippines reported the highest proportional rises, with cases up modestly in South Korea and Australia. South Korea today was expected to drop most of its remaining COVID restrictions and lower its advisory level from "serious" to "alert."Chinese infectious disease experts last week said the country was experiencing another surge in cases, but there are few new details, other than that deaths were up sharply over the past 4 weeks. Cases are up inTaiwan, as well, and health officials said they expect cases to peak in late June or early July.Elsewhere in Asia, Thailand reported a steady rise in cases. The country is part of the WHO's Southeast Asia region, which saw an overall decrease over the most recent reporting period. Also, Indonesia reported a smaller rise in activity.In Africa, hot spots include the Democratic Republic of the Congo, Cabo Verde, Mauritius, and Zimbabwe.The proportion of Omicron XBB.1.5 sequences fell from 49% in the middle of April to 34% in the middle of May. Meanwhile, over the past month the proportion of XBB.1.16—reported from 61 countries—rose from 8.8% to 16.3%. Of the variants under monitoring, four showed rises: XBB.1.9.1, XBB.1.9.2, XBB, and XBB.2.3.

Fusarium solani implicated in fungal meningitis outbreak tied to Mexican cosmetic surgery - Mexican health officials have identified Fusarium solani, a common soil fungus, in cerebrospinal fluid samples from five American women who got sick after undergoing cosmetic surgery procedures performed under spinal anesthesia at two private clinics in Matamoros, Mexico, from January to April, the World Health Organization (WHO) said today. The illnesses were the subject of a US Centers for Disease Control and Prevention (CDC) Health Advisory Network notice on May 17. The WHO said that, as of May 26, 20 cases have been reported in people who have signs and symptoms compatible with central nervous system infection. The CDC has reported two deaths.An investigation found that 547 people had procedures at the clinics during the time people got sick, 304 from Mexico and 237 from the United States, the WHO said. In an update this week, the CDC said 220 people in the United States have known exposure, with 11 listed as having probable infections, meaning tests were positive for fungal infection markers, and 14 are listed as having suspected cases, meaning their symptoms are consistent with meningitis. Some of the US patients seen at the clinic didn't have epidural anesthesia.State health officials in Mexico closed the two clinics on May 13, and investigations into the illnesses are ongoing. So far the fungus source, vehicle, and transmission route are unknown.

France reports rise in severe neonatal infections from enterovirus variant - French health officials have reported an unusual rise in neonatal sepsis cases that has led to seven deaths and involves enterovirus (echovirus-11 [E-11]), the World Health Organization (WHO) said today in an outbreak notice. Between July 2022 and April 2023, nine cases were reported from four hospitals in three regions, all involving hepatic involvement and multiorgan failure. Seven babies died, and two are still hospitalized. The cases are linked to a recombinant E-11 lineage that hasn't been detected in France before and is considered unusual due to extremely rapid health deterioration and a high case-fatality rate. Though severe E-11 has occurred before in twins, the proportion in the current group is higher than expected. Eight of the babies were preterm, and there were four pairs of twins among the total group. All experienced clinical signs from 1 to 7 days after birth, hinting at mother-to-child transmission. Tests confirmed maternal infection with E-11 in four of the five mothers, and the ones who tested positive had experienced gastrointestinal symptoms or fever within 3 days of delivery. Data from 2016 through 2021 found the proportion of severe neonatal infections from E-11 rose from 6.2% over the time period to 55% in 2022. The WHO said the risk to the general population is low, despite the worrisome increase. It urged clinicians treating newborns and young infants for circulatory shock to consider sepsis and conduct diagnostic tests, including for enterovirus.

Bangladeshi study finds high levels of multidrug-resistant, foodborne Salmonella - A systematic review and meta-analysis found significant levels of multidrug-resistant Salmonella in livestock- and poultry-derived foods in Bangladesh, researchers reported today in JAC-Antimicrobial Resistance. The 12 studies included in the meta-analysis were published from 2000 to 2022 and examined 1,411 food samples derived from chickens, cattle, and goats. The combined prevalence of Salmonella in the samples was 37%, and subgroup analysis found a high prevalence of resistance to routinely used antibiotics among the Salmonella isolates, including tetracycline (81%), oxytetracycline (52%), doxycycline (51%), sulfamethoxazole/trimethoprim (42%), and ciprofloxacin (20%). A univariate meta-analysis and correlation analysis found that the prevalence of Salmonella increased with every year.The World Health Organization estimates that Salmonella causes 93.8 million cases of gastroenteritis globally. In addition to the threat posed to people consuming Salmonella-contaminated food, the study authors note that the findings are particularly concerning in a country like Bangladesh, where domestic chickens—the most common source of Salmonellosis—are routinely given antibiotics, live close to humans, and can shed the bacteria into the environment."AMR [antimicrobial resistance] is expected to increase by 70% in Asia, posing a national and global threat," they wrote. "To reduce the risk of pathogenic AMR bacteria originating from animal origin foods, raising awareness about the rational use of antibiotics in food animals, safe food handling and safe cooking practices is obligatory."

Almost 3 in 10 kids infected with malaria in sub-Saharan Africa -- A study yesterday in PLOS One shows the continued prevalence of malaria among children in sub-Saharan Africa, suggesting that as many as 3 in 10 children have been infected with the mosquito-borne disease. The study was based on the Malaria Indicators Survey in Burkina Faso, Ghana, Guinea, Kenya, Liberia, Madagascar, Mali, Malawi, Mozambique, Nigeria, Sierra Leone, Senegal, and Tanzania. Data from 60,541 children aged 6 months to 4 years and 9 months were included. The surveys were conducted in 2015 through 2021 and included interviews with 74,976 parents or guardians.Children ages 5 and under at the largest risk of death from malaria, and, globally, every 75 seconds a child dies from the disease somewhere in the world. Africa accounts for 95% of malaria cases and 96% of malaria deaths.The authors of the study said they aimed to illustrate what risk factors led to a higher prevalence of the disease, and which prevention strategies should be promoted in the future. Surveillance of malaria trends, according to the World Health Organization, is key to identifying the most affected populations, detecting possible determinants, and assessing the effectiveness of malaria prevention tools, including insecticide-treated bed nets.Overall, the prevalence for all countries included in the study for children up to age 5 was 27.41%. Senegal had the lowest prevalence (5.04%), while Sierra Leone had the highest (62.57%).Older age was related to higher rates of malaria: In every country included in the survey, the older a child, the higher likelihood of malaria infections. This is likely because infants have maternal antibodies that wane over time.Children from families with fewer children and children whose mothers had higher education levels were less likely to have had malaria than children who were born into large families to mothers with low levels of education.

Counterfeit Drugs Are On The Rise Globally - Counterfeit medicines are on the rise, according to data from the Pharmaceutical Security Institute.As Statista's Anna Fleck shows in the following chart shows, nearly 6,000 pharmaceutical crime incidents were recorded by the nonprofit in 2021, up 38 percent from the year before and the peak figure since their records began 20 years ago.In terms of the geographical distribution of counterfeit pharmaceutical seizures, the greatest number was recorded in North America (2,442) followed by the Asia Pacific (1,747), Latin America (770), the Near East (705), Eurasia (646), Europe (374) and Africa (187). This order is largely due to how well countries in these regions are effectively identifying pharmaceutical crime through law enforcement activity and inspections by drug regulatory agencies. As the PSI notes, competing law enforcement priorities, lack of funding, or inadequate regulatory structures can mean that counterfeit medicines go undetected.According to the World Health Organization, roughly 10 percent of medical products circulating in low- and middle-income countries are substandard or falsified. In sub-Saharan African nations, this share is believed to be even higher, rising closer to 19-50 percent. With this in mind, the actual number of incidents of fake pharmaceuticals being manufactured and distributed is likely far higher than this chart shows, considering the many cases where fake drugs have not been detected or reported.

How Harmful Are Gas Stove Pollutants, Really? - The New York Times - Every morning, as millions of Americans light up the gas stoves in their kitchens to heat some water or griddle their hash browns, they aren’t just sending delicious breakfast smells wafting through their homes. The blue flames also emit harmful pollutants like nitrogen dioxides, as well as planet-warming gases. So a team of scientists from Stanford recently embarked on a testing tour of New York City apartments to better understand the extent of the pollution and how it flows from room to room in people’s real homes. It’s part of a 10-city study that is already showing how contaminants can quickly drift into living rooms and bedrooms, sometimes far beyond the stoves that created them. Concerns over the health and climate effects of gas-burning stoves have already prompted some cities and states to seek to phase out natural gas connections in new buildings, and the federal government has also moved to strengthen efficiency standards for gas stoves. But the issue has become a polarizing one. Last week in Washington, Republicans convened a hearing of the House Oversight Committee “examining the Biden administration’s regulatory assault on Americans’ gas stoves.” On a crisp Sunday morning, the Stanford scientists made their first stop in New York City: a public-housing project in Morningside Heights in Upper Manhattan. The three-bedroom apartment they were visiting — home to Tina Johnson, a mother to three adult children who had just cooked a breakfast of fried eggs and potatoes. A new stove had just been installed in her unit, but she still “can’t stand the smell” of the gas from it, she said. She had volunteered to participate in the study through a local climate group, Mrs. Johnson said, because she and her children have asthma and other health problems; she was eager to know what their stove did to the air they breathed. After they took background readings, it was time to turn on the gas, a single small burner on high. The machinery quickly detected the change: a rise in concentrations of nitrogen dioxide — which, among other negative health effects, can irritate the respiratory system, aggravate symptoms of respiratory diseases and contribute to asthma. Concentrations climbed to 500 parts per billion, five times the safety benchmark for one-hour exposures set by the Environmental Protection Agency. (Concentrations of benzene, a human carcinogen that is present in cigarette smoke and car emissions, also tripled.)

Using a gene-editing tool to improve productivity in rice crops -- As global food insecurity climbed to a perilous high in 2022, scientists ramped up their efforts to perfect best practices for protecting the yields of major crops that are essential in combating this issue. And, while rice makes up a small portion of Missouri's annual harvest, it—along with corn and soybeans—are key staples that help address food insecurity not only in the United States, but across the world. In a recent study that examined how diseases function in rice crops, University of Missouri researchers might have found critical answers. In this study, Bing Yang, a plant biology professor in the MU College of Agriculture, Food and Natural Resources and the Donald Danforth Plant Science Center used genome editing as a tool to identify problematic pathogens present in certain bacteria that lead to prolific infections in rice crops. This research provides insight into the host-pathogen relationship, allowing scientists to better genetically engineer plants to survive crop diseases. First, the research team discovered a way to "knock out" genes. When specific genes are knocked out of the bacteria, it allows scientists to better understand the functions of those specific genes. Researchers then tested for infectious properties—something that has historically been a labor-intensive process."This research allows us to better understand which bacteria hold pathogenic qualities and how those qualities correspond to infections in certain species of plants," Yang said. "Ultimately, these advances in gene editing help us modify the genome of crops, in this case rice, in ways that build resistance that protect them from diseases."Using a revolutionary gene-editing technique called CRISPR—a method where scientists edit genes by cutting DNA and then letting it repair naturally—Yang and his team edited a sample of bacteria with the goal of determining exactly which genes had pathogenic qualities that would infect proteins in the genome of the rice crop. Notably, Yang's method revolutionizes a process known as homologous recombination, which has been known to be ineffective and time-consuming.

Firms withheld pesticide toxicity data from EU: study -- Several major agrochemical companies did not disclose to European Union authorities studies assessing the toxic effects of pesticide ingredients on brain development, research said on Thursday. The nine studies, which looked at how different nine pesticide chemical compounds affected the developmental neurotoxicity (DNT) in rats, were however shared with regulators in the United States, the Sweden-based researchers said. The two companies behind the majority of the studies, German chemicals giant Bayer and Swiss agriculture firm Syngenta, said they complied with all regulatory requirements. The researchers said their study, published in the journal Environmental Health, was the first that sought to quantify the seemingly "recurring phenomenon" of companies not disclosing DNT studies to EU authorities. "It is outrageous and unbelievable that a good fraction of these studies do not make it to the authorities as required by law," study co-author Axel Mie of Stockholm University told AFP. The researchers looked at the DNT studies on pesticide chemical compounds submitted to the US Environmental Protection Agency (EPA) in recent decades. Out of 35 studies conducted between 1993 and 2015 submitted to the EPA, nine were not shared with EU authorities, they found.The studies were conducted on pregnant rats, testing whether the offspring of those exposed to the compounds suffered developmental problems.Decreased weight gain, delayed sexual maturation and deteriorating motor activity were among the side effects reported in adult offspring in the studies.Of the nine pesticide compounds, four have now been taken off the EU market, while another four are currently under review, Mie said. "There must be legal consequences and serious ones for the companies if they do not follow the law," he said. Bayer and Syngenta, which each sponsored three of the studies, rejected the conclusions of the research. A spokesperson for the European Food Safety Authority (EFSA) said stronger legislation in this area came into force in 2021, which requires companies to share "all safety studies" about their products.Study co-author Christina Ruden urged EU authorities to cross-check data with the EPA and other regulators, calling this change "low-hanging fruit".But she added that "the absolutely most important action is to remove the responsibility of testing chemicals from the producers, and put that responsibility back on authorities." "This is about protecting the brains of our children," Ruden added.

Western lands fight erupts over Bureau of Land Management’s conservation proposal - Idaho Capital Sun --One thing opponents and proponents of a recently proposed U.S. Bureau of Land Management rule agree on: It would be a major shift in how the agency manages nearly 250 million acres of federal lands.The rule would allow for conservation leases, similar to how the agency auctions off parcels of land for mining, livestock grazing or oil and gas development. Supporters say the proposal would lift conservation to the level of extractive uses, a responsible move to protect lands affected by climate change. Outraged opponents — including many congressional Republicans — view the rule as a drastic overreach that violates existing law. Fears that conservation leases would evict grazing permittees and others have only been stoked by Republican rhetoric on the issue.“The BLM has time and again shown their aim is to drastically reduce, or even eliminate, grazing on public lands, and this proposed rule is the latest iteration of this effort,” Washington Republican U.S. Rep. Dan Newhouse said in a May 22 statementannouncing a bill to block the proposed rule.But the rule would have little to no impact on existing users of federal lands, the proposal’s supporters say.They say opponents have been led astray by an inherent distrust of President Joe Biden’s administration, apprehension about a big change in the agency that manages their livelihoods, or fed misinformation by oil and gas allies.“There has been a lot of confusion around the proposed rule,” Danielle Murray, senior legal and policy director with the advocacy group Conservation Lands Foundation, said on a press call. “There’s false claims that this rule would kick ranchers off their land, it would mean the end of oil and gas development, it would lock the public out.“The facts are that the proposed rule explicitly states it does not undermine or impact any valid existing rights.”

WV Conservation Groups Troubled by SCOTUS Wetlands Decision - Since the U.S. Supreme Court has sided with private property owners in a battle of over wetland protections and the Clean Water Act, West Virginia environmental groups are concerned about further rollbacks to federal clean-water protections.Angie Rosser, executive director of the West Virginia Rivers Coalition, explained wetlands are natural water filters, and important for reducing flooding impacts. She said she is troubled by the Supreme Court's decision and how it could potentially be applied to the state's headwater streams."West Virginia is a network of valuable and very sensitive headwater streams that feed our bigger rivers and our drinking water supplies for millions of people," Rosser emphasized.The Clean Water Act is the law preventing contamination of navigable waters. The high court last week ruled the law extends only to wetlands with a "continuous surface connection" to a navigable body of water.Alex Funk, director of water resources and senior counsel for the Theodore Roosevelt Conservation Partnership, said the ruling essentially green-lights wetland areas for developers and other uses that will likely have far-reaching impacts."If anything, this is going to put major setbacks on things like our ability to adapt to climate change, respond to extreme weather events, drought," Funk contended. "And so, I think we're still thinking through the next steps."Funk added states could step up to strengthen protections for their own waterways in the aftermath of the case. "What we'll likely see is also a lot of states potentially picking up legislation or other actions to potentially mitigate some of the losses," Funk projected. "A lot of states have broader definitions of state waters."Research estimates more than 40% of the nation's wetlands have disappeared over the last several centuries.

Wisconsin, Texas report more CWD cases in deer - Chronic wasting disease (CWD) has been detected on another Wisconsin deer farm and for the first time in Bexar County, Texas.The Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP) yesterday confirmed CWD in a 10-year-old doe on a 22-acre deer farm in Sauk County. The National Veterinary Services Laboratories (NVSL) in Ames, Iowa, confirmed the case. The farm remains under quarantine as veterinarians from the DATCP and the US Department of Agriculture conduct an epidemiologic investigation.The Texas Parks and Wildlife Department (TPWD) yesterday announced that a free-range white-tailed deer in Hollywood Park, Bexar County, has tested positive for CWD. The deer was harvested as part of a deer population-control effort in late January. The NVSL confirmed the case.TPWD said it will hold community meetings this summer on mitigation actions and CWD zone establishment. The disease was first detected in Texas in 2012.CWD is a fatal neurodegenerative disease caused by infectious prions (misfolded proteins) that affects cervids such as deer, elk, and moose. In addition to North America, the infection has been identified in several Nordic countries and South Korea. While the disease is not yet known to affect humans, the US Centers for Disease Control and Prevention and the World Health Organization recommend against consuming meat from CWD-infected cervids.

Scientists discover markedly different kangaroos on either side of Australia's dingo fence --Australia's dingo fence is an internationally renowned mega-structure. Stretching more than 5,600 kilometers, it was completed in the 1950s to keep sheep safe from dingoes. But it also inadvertently protects some native species. This makes the fence an unintentional experiment in the relationship between predators and prey. Our new research, published in the Journal of Mammalogy, examined how the fence affects a favorite prey of the dingo: red kangaroos. We found young kangaroos on the side exposed to dingoes grew more quickly than their protected counterparts. This has potentially big repercussions for the health of these juveniles.The merits of the dingo fence are hotly debated, and there have been calls to pull it down or move it. That's why we must seek a better understanding of how the fence affects the animals that live along it. The dingo fence, formally known as the "wild dog barrier fence", runs through Queensland, New South Wales and South Australia. It protects sheep and cattle to the southeast. Extensive fencing can fragment habitats and disrupt ecosystems. Maintaining the fence costs about A$10 million per year. For these and other reasons, some have suggested the fence be pulled down. But how would removing the fence affect kangaroos that have lived without dingoes for up to 70 years? We assessed 166 red kangaroos from two isolated populations on either side of the fence in far northwest NSW. We expected kangaroos north of the fence—those hunted by dingoes—to differ from their dingo-free cousins to the south. That's because their lives are more stressful, especially for young kangaroos and females that are killed by dingoes more often than adult males.As anticipated, we found more young and female kangaroos in the dingo-protected population south of the fence. But the story is more complex than that. Young kangaroos south of the fence, up to about the age of four years, grew more slowly than those in the north. They were substantially smaller and lighter than their dingo-exposed counterparts. This raises an exciting possibility: that the growth of kangaroos south of the fence has slowed in the absence of the dingo threat.But maybe there was just more plant food available in the north, where there are fewer kangaroos compared to the south. Was this the reason the northern kangaroos grew more quickly?As it turns out, no. We assessed the vegetation on each side of the fence using a decade of satellite measurements. We found there was probably less, not more, food overall for kangaroos in the north compared to the south.More detailed investigation is needed into whether the types of plants differed on each side of the fence. But our results suggest the different growth rates were driven by predators, not food availability.

Why the climate crisis is making our insects run for the hills - In the Alps and Apennines of southern Europe, nearly all the longhorn beetles are moving uphill, and way up at the peaks, the isolation of a brown butterfly with orange-tipped wings is pushing it towards extinction. This is a snapshot of a global trend. With temperatures rising and pressure on biodiversity growing, insects vital to our ecosystems are not only moving north and south, but up. Research shows many animals are making similar moves, but insects’ high levels of mobility and short generation times allow them to respond quickly to change, meaning the uphill momentum can be rapid. Bumblebees in the Pyrenees have moved upwards on average by more than a metre a year, with some species making significantly greater journeys. Moths on Borneo’s Mount Kinabalu have followed suit. All of this makes them a useful indicator of the speed of global heating and ecological impacts at higher altitudes – often biodiversity hotspots and havens for endemic species. To try to grasp the implications, scientists are filling their backpacks and lacing up their walking boots. “If you want to track climate change on a mountain, you go a few metres. To do that with latitude, but on a flat basis, you have to move many kilometres,” says Prof Jane Hill from York University, who has spent years studying insects at elevation in the UK and the tropics. While the broader altitude shift is disquieting in itself, studies have also shown that reproduction and development can be hit as insects move upwards. Other possible effects are simply unknown. What is undoubtedly true is that they are not uniformly distributed, and in general, the greatest existential threat does not face those making initial forays up from the lowlands. For species long adapted to the cooler air of higher slopes, there are fixed limits to how far they can move to find conditions conducive to survival. And yet well over half of the mountain-dwelling insects that have been studied are shifting upwards.

Investigation Launched After Venice's Grand Canal Turns Bright Green - Residents of Venice, Italy woke up to a mysterious bright green patch of water in the city's central waterway on Sunday. The phenomenon could be seen along an embankment near the Rialto Bridge, which expanded throughout the day. The incident has sparked an investigation involving the police, the local environmental agency, and other local bodies. Luca Zaia, head of the Veneto region, tweeted that an "urgent meeting" had been convened to discuss the green swath of water. In a statement from the regional environmental agency, an initial analysis of the water suggested that there were no substances deemed harmful to the environment (and people?), and that more tests will be conducted today. The agency has offered up one possibility; a water soluble dye called fluorescein. The incident was reminiscent of when Argentine artist Nicolás García Uriburu released fluorescein into the Grand Canal during the 1968 Venice Biennale. The dye temporarily turned the water phosphorescent, and the act was cast as a way to promote ecological awareness. On Sunday, local media suggested that an environmental group could have been responsible. –WaPo In May, environmental activists from Last Generation climate action stepped into Rome's Trevi Fountain and poured diluted charcoal into the water to protest the use of fossil fuels. According to the Post, the group has repeatedly staged acts of civil disobedience across Italy, including the spray painting of historical buildings and throwing soup on a Van Gogh painting.

NOAA Reveals Outlook for 2023 Atlantic Hurricane Season - The National Oceanic and Atmospheric Administration (NOAA) has revealed its outlook for the 2023 Atlantic hurricane season, which goes from June 1 to November 30, in a statement posted on its site. The outlook predicts a 40 percent chance of a near-normal season, a 30 percent chance of an above-normal season, and a 30 percent chance of a below-normal season, NOAA highlighted in the statement, adding that the organization is forecasting a range of 12 to 17 total named storms. Of those, five to nine could become hurricanes, including one to four major hurricanes, according to NOAA, which said that it has a 70 percent confidence in these ranges. The upcoming Atlantic hurricane season is expected to be less active than recent years due to competing factors driving this year’s overall forecast for a near-normal season, NOAA noted. “After three hurricane seasons with La Nina present, NOAA scientists predict a high potential for El Nino to develop this summer, which can suppress Atlantic hurricane activity,” NOAA said in the statement. “El Nino’s potential influence on storm development could be offset by favorable conditions local to the tropical Atlantic Basin. Those conditions include the potential for an above-normal west African monsoon, which produces African easterly waves and seeds some of the stronger and longer-lived Atlantic storms, and warmer than normal sea surface temperatures in the tropical Atlantic Ocean and Caribbean Sea, which creates more energy to fuel storm development,” NOAA added. In NOAA’s latest statement, FEMA Administrator Deanne Criswell said, “as we saw with Hurricane Ian, it only takes one hurricane to cause widespread devastation and upend lives”. “So, regardless of the number of storms predicted this season, it is critical that everyone understand their risk and heed the warnings of state and local officials,” Criswell added.

Tropical Storm Arlene 2023: forms in Gulf of Mexico -- Tropical Storm Arlene has formed in the Gulf of Mexico as of the latest advisory from the National Hurricane Center. Maximum sustained winds have increased to 40 miles per hour. The storm is expected to weaken by Friday night. The impact for Southwest Florida’s forecast remains low, with slightly amplified moisture fueling scattered storms through the weekend. High temperatures will reach the upper 80s and low 90s under mostly cloudy skies. It will also be a very humid afternoon thanks to the surge of tropical moisture from Tropical Depression 2 in the Gulf of Mexico. One to two-foot Gulf wave heights and a light chop in our bays is expected. . After a few stray showers in the morning, isolated showers will quickly grow into scattered thunderstorm chances after lunchtime. Coverage will be similar to Wednesday. These rain chances will taper off late tonight. Glades and Hendry counties now have Flood Watches in effect through the evening.

Tropical Depression Arlene Saturday advisory still a rainmaker | Miami Herald -- Tropical Storm Arlene weakened to a tropical depression Saturday morning as its maximum sustained winds dipped from 40 mph to 35 mph.The National Hurricane Center’s 11 a.m. Saturday advisory had Arlene moving south-southeast near 7 mph about 145 miles west-southwest of the Dry Tortugas and on a track toward Cuba. The depression should turn east Saturday night and scrape under the Florida Keys’ coast. Isolated to scattered thunderstorms — a 40% chance — were expected in theKeys Saturday and Sunday, according to the National Weather Service in Key West.Weakening was expected. Arlene is forecast to degenerate into a remnant low by late Saturday, before dissipating, hurricane specialist John Cangialosi wrote.A strong thunderstorm in South Miami-Dade late Saturday morning prompted the National Weather Service in Miami to issue a statement warning of 40 mph winds and possible pea-sized hail for areas including Homestead, Cutler Bay and Palmetto Bay. There are no coastal watches or warnings in effect for Tropical Storm Arlene.But rainfall amounts of 1 to 2 inches with localized higher amounts up to 5 inches were possible through Saturday across portions of the southern Florida Peninsula, the hurricane center said.Severe thunderstorms were moving through Hollywood, Hallandale Beach, Dania Beach and into Fort Lauderdale Saturday afternoon.

Large hail, multiple tornadoes touch down near Stratford, Texas - (video) Large hail and several tornadoes hit ranchland near Stratford, Texas during evening daylight on May 28, 2023. The footage was captured by meteorologists Juston Drake and Simon Brewer.

Coldest May in years sweeps across Australia, straying from predictions - Coldest May in years sweeps across Australia, straying from predictions Wednesday, May 31, 2023 gfs 2m temperature anomaly 0z may 27 model May 2023 saw an unseasonably cold spell across Australia with over 100 weather stations registering record-breaking minimum temperatures for the month, contradicting the Bureau of Meteorology’s predictions for a warmer and drier May. The month of May 2023 was marked by an unusual chill across Australia, as over 100 weather stations reported record-breaking minimum temperatures, a departure from the Bureau of Meteorology’s expectations of a warmer and drier month. The month was characterized by frequent frosts, occasional snowfall, and below-average rainfall. In contrast to the warmer and wetter end of Autumn experienced in recent years, the climate this year significantly deviated from the norm. Areas as far north as tropical Queensland and the Northern Territory experienced unusual frosts, while several snowfalls were reported in the southeast ranges through May. According to ABC meteorologist Tom Saunders, Sydney experienced its coldest May in 53 years, with the mean temperature—a measure of all minimum and maximum temperatures—settling at 15 °C (59 °F). This temperature hasn’t been this low since 1970. Moreover, the average minimum temperature in the city plunged to 10 °C (50 °F), a notable decline from the long-term average of 11.6 °C (52.9 °F). The ABC reports that this was Sydney’s coldest May since 1957. Melbourne, while also experiencing colder weather than in recent years, maintained temperatures closer to its 170-year average, with the city’s mean temperature hovering just over 13 °C (55.4 °F). Brisbane’s May was the coldest in 29 years, particularly during the night times, with temperatures dropping to an average low of 11.8 °C (52.2 °F), nearly 2 °C (3.6 °F) below the average. Canberra also experienced chilling night-time temperatures, averaging only 0.5 °C (32.9 °F) — approximately 2.5 °C (4.5 °F) below normal. Canberra’s mean temperature was the lowest in 11 years, sitting at 7.8 °C (46 °F), and the city noted 18 minimums below freezing point. Darwin’s nights were also colder than usual, the coldest in 12 years, with an average temperature of 20.8 °C (69.4 °F), more than 1 °C (1.8 °F) below the average of 22.2 °C (71.9 °F). Perth and Adelaide experienced slightly below-average temperatures, the coldest in three years, while Hobart’s May weather was predominantly average. While the capital cities endured unusually low temperatures, the drop in the Australian outback was more drastic, with minimum temperatures falling between 5 and 10 °C (9 – 18 °F) below average.

Century-old heat record broken in Shanghai, southern China hit by the strongest May heat wave on record - The city of Shanghai in China has experienced its highest temperature in May for more than 100 years. On Monday, May 29, 2023, the mercury soared to 36.7 °C (98 °F), surpassing the previous record of 35.7 °C (96.3 °F) set in May 1876. The city of Shanghai has broken a more than 100-year-old record by recording its highest temperature in May. On Monday, the maximum temperature reached 36.7 °C (98 °F), surpassing the previous record of 35.7 °C (96.3 °F). This previous record was first set in May 1876 and had only been matched three other times in the years 1903, 1915, and 2018. The record-breaking heatwave was recorded in Shanghai’s Xuhui district, according to the Shanghai Meteorological Department. Earlier in the day, the department had issued its first high-temperature alert of the year, as the temperature had exceeded 35 °C (95 °F) for three consecutive days. Over 130 stations in 10 provinces across China broke their May records yesterday, including Shanghai. 43 °C (109.4 °F) was registered at Qiaojia in Yunnan, 41.1 °C (106 °F) at Ningnan in Sichuan while 40 °C (104.0 °F) was recorded at 1 254 m (4 114 feet) above sea level at Dongchuan. Zhaotong, Puge, and Zhaoiue had their hottest days for any month. Today, May 30, 18 stations broke the highest record and 2 stations tied the record, mainly in Yunnan. 178 stations broke the record in May, and 15 stations equaled the record. Among them, 61 stations in Guangdong, which is 71% of the stations in the province, according to Jim Yang.

Eye Opener: Sandstorm turns skies over Egypt deep orange - CBS News video - A sandstorm in Cairo, Egypt, was caught on camera. The storm created blackout conditions and turned the sky deep orange

Floods and landslides in Italy: a man-made disaster - A state of emergency remains in force in the Italian region of Emilia-Romagna, following last week’s severe floods. Floodwaters have only very slowly receded from the villages and fields in the hinterland of the Adriatic coastal strip. In the affected area, which stretches from Ravenna and Cesena to Bologna, the floods claimed at least 14 lives. More than 36,000 have had to leave their homes, over 20,000 in the Rimini area alone, and thousands remain in emergency accommodation, their houses and apartments destroyed. Many roads and train lines remain impassable after 22 rivers broke their banks and no less than 300 landslides occurred. In the last few days, the storm has continued to spread, and a red alert was issued in other Italian regions last weekend. In Sicily and Calabria, flooding occurred as a result of heavy rain. In Reggio Calabria, strong winds added to the situation, with one man killed by a falling tree. In Piedmont in northern Italy, where the Po River has flooded, roads near the river had to be closed in the city of Turin. In Emilia-Romagna and the neighbouring areas, this flood-of-the-century destroyed the grain, fruit and vegetable harvests. Whole plantations of strawberries, apricots, apples or peaches have been covered with silt and devastated. Thousands of cattle, pigs and sheep have also drowned, and many farms were completely cut off by landslides. In addition, there is an increased risk of infection due to contaminated drinking water. According to the Italian Society for Environmental Medicine, sewage has overflowed in several places and elderly people and children in particular are at risk of gastrointestinal infections, skin diseases and conjunctivitis. Residents have been advised to protect themselves with a tetanus vaccination. On the Adriatic, from Ravenna to Rimini, the holiday season should now be starting. For more than 120 years, the coastal region has lived on the basis of tourism, after the beach resort of Rimini was built at the end of the 19th century following completion of the Milan-Ancona railway line, which reaches to the sea. Just before the Spring holiday, however, storm tides washed over the beaches and partly swept them away. Tens of thousands of cubic metres of sand have been washed away, along with cabins, sunbeds and parasols. Pumps are running day and night to clear the basements of hotels and restaurants.

Massive wildfires destroy hundreds of homes in Nova Scotia, force thousands to evacuate, Canada - (videos) Massive wildfires continue to rage across the Canadian province of Nova Scotia, leading to the destruction of hundreds of buildings and the evacuation of over 16 000 residents. As of Tuesday afternoon, May 30, 2023, the fires, which have primarily affected areas around the capital Halifax, have resulted in no reported injuries or missing persons. However, the extent of the damage is significant, with an estimated 200 homes or structures destroyed. Nova Scotia Premier Tim Houston described the damage as “extensive” and “heartbreaking” during a news conference on Tuesday afternoon. In response to the ongoing crisis, authorities have temporarily banned activities and travel in Nova Scotia’s woods, including hiking, camping, and fishing. A burn ban is also in effect. As of Tuesday afternoon, 13 fires were burning, with at least three of them being out of control, according to Scott Tingley, manager of forest protection for the Department of Natural Resources and Renewables. The newest fire, spanning about 50 ha (123 acres), was burning in the Pubnico area but was not near any homes. Firefighting crews are working tirelessly to protect homes and other structures at risk of destruction. However, the growing number of fires has overwhelmed their resources, leading authorities to seek help from other agencies. The causes of the fires remain under investigation, but all of them are “very likely” caused by humans, possibly accidentally, according to Tingley. The smoke from the wildfires is affecting visibility on some roads and poses a danger to public health. The Barrington Lake wildfire, currently the largest fire on record in Nova Scotia, continues to expand at an alarming rate. By Tuesday night, the fire had almost doubled in size from Monday, engulfing 19 000 ha (46 949 acres) and surpassing the previous record set by the Trafalgar fire in Guysborough County in 1974. The wildfire, fueled by scrub brush and stunted softwoods, shows no signs of slowing down, with winds further fanning its spread. Alarmingly, the Barrington Lake fire has already burned more land than the combined total of 3 664 fires from 2006 to 2021, which accounted for 11 571 ha (28 597 acres).

Thick lava flow within the summit crater of Great Sitkin volcano, Alaska - Slow eruption of lava continues at Great Sitkin volcano, Alaska, producing a thick lava flow within the summit crater. While there was no significant earthquake activity detected over the past day, slightly elevated surface temperatures were observed in partly cloudy satellite views, the Alaska Volcano Observatory reported at 20:19 UTC on May 30, 2023.1 A series of low-frequency earthquakes occurred on May 24 but did not result in any observed change in eruptive behavior. An eruption of lava began at the volcano in July 2021 and has continued to slowly erupt since, but no explosive events have occurred. There was an explosive event in May 2021, before the current eruption of lava. The Aviation Color Code is at Orange and the Volcano Alert Level is at Watch. This is currently the only Alaskan volcano with Aviation Color Code at Orange. The volcano is monitored by local seismic and infrasound sensors, satellite data, webcams, and regional infrasound and lightning networks.

Lloyd's Becomes Latest Firm To Exit UN's Net-Zero Alliance -- The Net-Zero Insurance Alliance (NZIA), convened by the United Nations, seeks to commit group members, composed of the world’s leading insurers and reinsurers, to fighting climate change. As part of this, members have to transition their insurance and reinsurance underwriting portfolios to net-zero greenhouse gas (GHG) emissions by 2050. On Friday, Lloyd’s of London quit the NZIA. This took the total number of members who have quit NZIA this week alone to six, which represents a fifth of the organization’s total of 30 members. Since March, a total of 10 members have quit NZIA.The exodus of major insurance companies has raised questions about NZIA’s viability. None of the six firms that quit this week have made it clear why they left the initiative.The insurance firms are said to have decided to pull out due to concerns about getting embroiled in disputes about net-zero initiatives in the United States. On May 15, attorneys generals from 23 American states sent a letter to 28 insurance companies asking for information about potential violations of antitrust laws.In the letter, state AGs asked the firms to provide information regarding their membership in climate associations like the NZIA and the Net Zero Asset Owner Alliance (NZAOA), which is also sponsored by the United Nations.“The insurance companies that are involved with this net zero program are, quite frankly, out on a plank, and they’ve sawed it off,” Robert Bork Jr., president of the Antitrust Education Project, said in an interview with The Epoch Times.“The Sherman [Antitrust] Act is pretty explicit about restraint of trade, which is exactly what they’re doing here by denying insurance to companies that they think aren’t doing the right thing when it comes to climate change and getting to a net zero future.”

State Farm Halts Home Insurance Sales In California - Faltering California took another economic hit on Friday, as America's largest personal lines insurer said it would immediately stop selling new home insurance policies in the state. California is the largest property and casualty insurance market in the country. State Farm attributed the decision to three factors: "historic increases in construction costs outpacing inflation, rapidly growing catastrophe exposure, and a challenging reinsurance market." Reinsurance is a method of transferring some of an insurer's risk to other insurers. Existing policies will stay in effect -- for now. There's always the possibility that, if things keep deteriorating, State Farm could decide to "non-renew" current policy-holders. That's what AIG did last year, sending thousands of high-end homeowners scrambling to find new coverage. The announcement's timing -- on a Friday afternoon heading into a long holiday weekend -- seemed intended to minimize publicity. In statement, State Farm said it "will cease accepting new applications including all business and personal lines property and casualty insurance, effective May 27, 2023. This decision does not impact personal auto insurance." The halt seems to include renters insurance, though the announcement wasn't explicit on that count. Inflation has been taking a harsh toll on insurers, who are pressing regulators to approve rate hikes to compensate for rising claim costs. Earlier this month, for example, San Antonio-based USAA posted the first ever annual loss in its 100-year history -- a $1.3 billion setback.

State Farm not accepting property insurance applications - Insurance giant State Farm is no longer accepting new applications for business or personal property coverage in California.“We take seriously our responsibility to manage risk,” the company said in a statement posted to its website Friday. “State Farm General Insurance Company made this decision due to historic increases in construction costs outpacing inflation, rapidly growing catastrophe exposure and a challenging reinsurance market.”Automobile insurance is not affected by the change, which took effect Saturday.The company was the state’s largest provider of property and casualty insurance as of 2021, the most recent year for which data are available from the California Department of Insurance.“While insurance companies prioritize their short-term financial goals, the long-term goal of the Department of Insurance is protecting consumers,” said Michael Soller, deputy insurance commissioner and spokesman. “The factors driving State Farm’s decision are beyond our control, including climate change, reinsurance costs affecting the entire insurance industry and global inflation.”Last year, California became the first state to require insurance premium discounts for owners who implement wildfire protection safeguards at homes or businesses. The change was a response to soaring insurance costs for people in areas prone to wildfire.“Protecting Californians from deadly wildfires means everyone doing their part, including insurance companies, by rewarding consumers for being safer,” Insurance Commissioner Ricardo Lara said at the time.While State Farm pledged to “work constructively” with California policymakers and regulators, the change is necessary to “improve the company’s financial strength,” the statement said.State Farm last year posted a net loss of $6.7 billion, driven largely by losses in the auto division. The company’s homeowner division recorded $849 million in underwriting gains.

Climate Shocks Are Making Parts of America Uninsurable. It Just Got Worse. – NYTimes -The climate crisis is becoming a financial crisis. This month, the largest homeowner insurance company in California, State Farm, announced that it would stop selling coverage to homeowners. That’s not just in wildfire zones, but everywhere in the state. Insurance companies, tired of losing money, are raising rates, restricting coverage or pulling out of some areas altogether — making it more expensive for people to live in their homes. “Risk has a price,” said Roy Wright, the former official in charge of insurance at the Federal Emergency Management Agency, and now head of the Insurance Institute for Business and Home Safety, a research group. “We’re just now seeing it.”In parts of eastern Kentucky ravaged by storms last summer, the price of flood insurance is set to quadruple. In Louisiana, the top insurance official says the market is in crisis, and is offering millions of dollars in subsidies to try to draw insurers to the state.And in much of Florida, homeowners are increasingly struggling to buy storm coverage. Most big insurers have pulled out of the state already, sending homeowners to smaller private companies that are straining to stay in business — a possible glimpse into California’s future if more big insurers leave. State Farm, which insures more homeowners in California than any other company, said it would stop accepting applications for most types of new insurance policies in the state because of “rapidly growing catastrophe exposure.” The company said that while it recognized the work of California officials to reduce losses from wildfires, it had to stop writing new policies “to improve the company’s financial strength.” A State Farm spokesman did not respond to a request for comment. Insurance rates in California jumped after wildfires became more devastating than anyone had anticipated. A series of fires that broke out in 2017, many ignited by sparks from failing utility equipment, exploded in size with the effects of climate change. Some homeowners lost their insurance entirely because insurers refused to cover homes in vulnerable areas.

CEO Of Top Carbon Credit Certifier Steps Down After Report Finds "Phantom Credits" - Four months after The Guardian and other European media outlets revealed the world's leading carbon credit certifier sold worthless offsets to major corporations, the head of Washington-based Verra has stepped down. "I am writing to let you know that after nearly 15 fantastic years as the CEO of Verra, I have decided to step down," Verra's CEO, David Antonioli, wrote in a LinkedIn post last week. He's leaving the role after dominating the multi-billion dollar carbon offset market for years and certifying over a billion dollars in credits through its verified carbon standard (VCS). Antonioli expressed gratitude towards the current and past employees and was proud of Verra's accomplishments as the world's leading standard-setter for climate action and sustainable development. He did not give a reason for his abrupt departure. Antonioli's exit comes four months after The Guardian, German weekly Die Zeit, and SourceMaterial, a non-profit investigative journalism organization, revealed a damning report on how Verra approved tens of millions of dollars of worthless offsets to Disney, Shell, Gucci, and other big corporations. The report found Verrra issued "phantom credits" to major corporations that don't represent genuine carbon reductions. Some corporations purchased these fraudulent credits and labeled their products as "carbon neutral." Days after The Guardian's report in January, Antonioli rejected the findings, calling them "outlandish claims" and heavily defended Verra's certification of carbon credits. But after all that, Antonioli is still stepping down.

Students and Faculty at Ohio State Respond to a Bill That Would Restrict College Discussions of Climate Policies - One year into her Ph.D. program at Ohio State University, Keely Fisher wonders if she belongs here.The problem has nothing to do with Ohio State and everything to do with the Ohio General Assembly and a proposal that would regulate higher education. The wide-ranging bill includes a provision that designates climate policy as a “controversial belief or policy” and says faculty must “encourage students to reach their own conclusions about all controversial beliefs or policies and shall not seek to inculcate any social, political, or religious point of view.”“Is this going to force me to leave?” Fisher asked, interviewed at the school’s main library. She came to Ohio to be part of the university’s School of Environment and Natural Resources and worries that the bill, if it becomes law, would hurt her program’s ability to recruit students and faculty, and would introduce uncertainty into the classroom about how climate change can be discussed. If the proposal had been law when she was deciding where to enroll, it would have steered her to a different university, she said.The bill is an example of a national trend of Republican-led states seeking to rein in what they see as runaway liberal politics in higher education—a sentiment that threatens to undermine the rigor and accuracy of teaching about arguably the greatest threat to the environment and economy.“You can say gravity isn’t true, but if you step off the cliff, you’re going down,” said Katharine Hayhoe, an atmospheric scientist who teaches at Texas Tech University and a well-known writer and commentator about climate change and responding to climate denial. “And if you teach other people that gravity is not true, you are morally responsible for anything that happens to them if they make decisions based on the information you provided.”The Chronicle of Higher Education has tallied 35 proposals across the country that limit the use of diversity programs at colleges and universities, with many of the bills taking additional steps to regulate what happens on campus. So far, Florida and North Dakota are the only states where the bills have been signed into law, and those laws do not have provisions about curriculum dealing with climate policies.Florida’s Senate Bill 266, signed by Gov. Ron DeSantis this month, says colleges cannot spend state or federal money on programs that advocate for diversity, equity and inclusion. It also bans courses that teach theories “that systemic racism, sexism, oppression and privilege are inherent in the institutions of the United States.”The Ohio bill bans state colleges and universities from requiring diversity, equity and inclusion training for students and staff; bans unions at at colleges and universities from going on strike; requires the use of student surveys in evaluating faculty; requires all students to take an American government or history course; and has a variety of provisions aimed at protecting students and faculty whose views may be out of line with those of the administration or a majority of people on campus.The measure has passed the Ohio Senate and is now being considered by the Ohio House, both of which have large Republican majorities. Gov. Mike DeWine is also a Republican. “Academics want to protect their woke fiefdom so they can continue to churn out like-minded and intolerant opponents of intellectual diversity,” said Sen. Jerry Cirino, a Cleveland-area Republican and lead sponsor of the bill, in a guest column last month in The Columbus Dispatch.His office did not respond to a request for an interview.

DTE Energy shareholders reject transparency proposal — Energy and Policy Institute - Despite the mounting backlash against DTE Energy’s political influence operation in Michigan, executives and shareholders of the utility rejected a proposal that would have required it to make annual disclosures about its political spending. The utility’s refusal to increase transparency comes after it has escalated its dark money activities and habitually used a variety of nonprofits to mask extensive political spending to advance its own interests. DTE still faces calls to detail its spending by state policymakersThe recent transparency resolution, explicitly opposed by DTE’s board of directors, was put forward as part of the company’s annual meeting by the SEIU Master Trust — a DTE shareholder — and supported by the Defend Black Voters Coalition. DTE leadership pushed for shareholders to vote down the measure, which would have required the utility to publish the following on an annual basis:

• Company policy and procedures governing lobbying, both direct and indirect, and grassroots lobbying communications;
• Payments by DTE used for (a) direct or indirect lobbying or (b) grassroots lobbying communications, in each case including the amount of the payment and the recipient;
• DTE’s membership in and payments to any tax-exempt organization that writes and endorses model legislation; and
• A description of management’s decision-making process and the Board’s oversight for making such payments.

The framework would have forced DTE to detail corporate dark money spending used for lobbying and funneled into LLC and 501(c)(4) organizations that help conceal such transactions. The proposal called out 501(c)(4) nonprofits linked to DTE that have pushed the utility’s political agenda, including Michigan Energy First and the Clean and Sustainable Energy Fund. It noted that DTE “critically fails to disclose its payments” to these organizations.

After ‘most expensive storm in history,’ DTE vows to invest in grid improvements — A February ice storm that was the biggest to hit Michigan in half a century, resulting in mass power outages, was the "most expensive storm in history" for the state's largest electric utility, according to DTE Energy Co. CEO Jerry Norcia. The utility, which provides electricity to 2.3 million customers in southeast Michigan, faced intense criticism after the Feb. 22 storm left some 630,000 customers without power for days, including thousands whose power was out for more than a week. DTE reported that the storm brought down 3,000 wires across its distribution system. The following week, with thousands of customers still without power, a second winter storm hit the state, resulting in power outages for more than 226,000 DTE Energy customers.The cost of the February ice storm for DTE was $200 million in cash, Norcia told The Detroit News editorial board in an interview Tuesday. He detailed a five-year, $9 billion plan to build a "grid of the future" and prevent such incidents from happening again.The $9 billion plan expands on work DTE already is carrying out under its current five-year, $5.4 billion grid improvement plan. A key component of the current plan was an $800 million "enhanced" tree-trimming effort that is now in its fifth year.Over the next five years, Norcia said, DTE will invest an average of $1.8 billion a year, an increase driven by worsening weather patterns and an anticipated increase in demand for electricity from the accelerating switch to electric vehicles.“It’s becoming abundantly evident, based on wind velocities (and) these historic storms that are starting to pile up on us every several years," he said, "that we have a new reality and that we need to build a grid that can handle that.”

Environmental groups slam 'poison pills' in debt ceiling bill -- As President Joe Biden and House Speaker Kevin McCarthy try to sell Congress on their proposal to raise the debt ceiling, environmental groups are crying out against provisions that would push forward a controversial pipeline project and weaken a bedrock environmental law. The deal is a “disaster for people and the planet,” the nonprofit Friends of the Earth said in a statement. The organization’s director of government and political affairs, Ariel Moger, called it a “surrender to Big Oil and Republican hostage-takers.” The main purpose of the so-called Fiscal Responsibility Act of 2023 is to raise the debt ceiling, a congressionally mandated limit on the amount of money the Treasury can borrow to fund its operations and pay its creditors. The U.S. government has never before failed to make a debt payment on time, and economists say a default — which is projected to occur on June 5 if Congress doesn’t raise the ceiling — would cause widespread financial chaos and spark a global economic recession. Congress has voted to raise the debt ceiling 78 times since 1960. Doing so allows the U.S. to continue paying for programs that Congress has already approved, but debt ceiling negotiations have gotten more contentious in recent years as congressional budget hawks try to win spending cuts in exchange for their support. This year’s bill includes some spending cuts to appease congressional Republicans, but it also contains environmental “poison pills” that opponents say have nothing to do with the national debt.One such provision would require the Army Corps of Engineers to approve all remaining permits for the Mountain Valley Pipeline, a 303-mile project to carry natural gas from West Virginia to Virginia. The bill would also protect the permits from judicial review.Although the conservative Democratic Senator Joe Manchin has argued that the pipeline is needed for “energy and national security,” experts say this need has never been demonstrated. Instead, a coalition of environmental advocates warn that pushing the project forward could cause some 89 million metric tons of greenhouse gas emissions annually — about as much as 19 million passenger cars — while also harming low-income communities and communities of color in its path. The pipeline has already faced numerous permitting roadblocks due to water quality violations. “This is a desperate company building a failing pipeline that has some sympathetic ears in Congress,” said Russell Chisholm, managing director of Protect Our Water, Heritage, Rights, a coalition of environmental groups in Appalachia. He said panic over the debt ceiling was a “completely manufactured crisis” that lawmakers were exploiting at the expense of frontline communities. “I really feel they’re trying to shift the blame for this looming deadline, this looming ‘catastrophe,’ over onto people who object to having their lives thrown away in the name of raising the debt ceiling,” Green groups are also concerned about changes to the National Environmental Policy Act, or NEPA, in the debt ceiling deal. Since 1970, NEPA, sometimes called the “Magna Carta” of U.S. environmental laws, has required federal agencies to conduct an environmental review before greenlighting major projects. The proposed changes would put time limits on that review process — a move that critics say could expedite fossil fuel infrastructure, although the White House has argued it could help move forwardclean energy proposals.

Biden’s climate gamble in the debt deal - President Joe Biden is in hot water with climate activists. Again.Environmental advocates are assailing what they call “poison pills” in the debt limit deal the White House made with congressional Republicans over the weekend. They’re outraged over what they call a “climate-killing” move to advance a contentious natural gas pipeline and provisions to speed up permitting for energy projects.Some climate activists are even vowing to blockade Democratic Senate Majority Leader Chuck Schumer’s home in Brooklyn on Tuesday over opposition to the climate provisions in the deal.The backlash from the left marks the latest skirmish between the Biden White House and climate hawks still fuming over the administration’s decision earlier this year to greenlight the massive Willow oil and gas drilling project on federal land in Alaska.The deal reached to raise the nation’s debt limit represents “a surrender by President Biden to Republican hostage-takers,” a coalition of environmental groups led by the Center for Biological Diversity wrote in a letter to lawmakers Tuesday. “It is an injustice and moral failure to have to choose between defaulting on our national debt or bankrupting the health of people and the planet.”A coalition of groups including the Center for Biological Diversity, Food & Water Watch, Friends of the Earth and others are urging Democrats to pass a clean debt ceiling bill free of “unnecessary poison pill riders” including the approval of the Mountain Valley pipeline and changes to the National Environmental Policy Act’s permitting process.Others pointed to the GOP. “It is shameful that House Republicans are holding the entire economy hostage to advance an agenda that sacrifices the wellbeing of millions of Americans for the benefit of billionaires and oil and gas companies,” Earthjustice President Abigail Dillen said in a statement. “Republicans raised or suspended the debt limit under former President Trump three times without any strings attached, and this should have once again been a clean debt limit raise.”But while some green groups are painting the deal as a big loss for Biden, the White House and other Democrats view the deal as a necessary political move to keep the nation from defaulting on its debt and to safeguard the massive renewable energy investments in last year’s climate law. Lawmakers are racing to pass the legislation this week as the default deadline looms.

Another permitting bill surfaces amid debt ceiling drama -New Mexico Democratic Sen. Martin Heinrich is expected to release two bills Thursday to enhance the nation’s grid, a bid to keep momentum going on permitting reform and to move beyond what was hammered out in the debt ceiling bill. The measures, which were shared with E&E News ahead of introduction, aim to tackle problems with transmission lines. One, the “Grid Resiliency Tax Credit Act,” would provide a 30 percent investment tax credit over the next decade to boost large-scale transmission projects. The other, the “Facilitating America’s Siting of Transmission and Electric Reliability (FASTER) Act,” would address siting and permitting delays to cut down on the time it takes to build high-voltage lines across huge swaths of land. “To meet our nation’s full potential as a global leader in the clean energy transition and to replace rapidly aging electric infrastructure, we are going to need to invest in building many more transmission lines,” Heinrich said. Rep. Steven Horsford (D-Nev.) will introduce companion legislation in the House, his office said. The proposals land as top Republicans on Wednesday said President Joe Biden and House Speaker Kevin McCarthy (R-Calif.) agreed to tackle pieces of the permitting puzzle that were left on the debt ceiling cutting room floor. But that maneuvering could soon force Democrats to support more changes to landmark environmental statues in exchange for getting Republicans to support grid reforms. “There is an urgency,” said Rep. Garret Graves (R-La.), who suggested there would be a bipartisan, bicameral task force on permitting. “The White House acknowledged that they have a major problem on transmission. They do. They are exactly right,” he said. The “Fiscal Responsibility Act,” which passed the House Wednesday night, includes long-sought Republican asks such as fast-tracking environmental reviews for energy projects as well as the final approval of the Mountain Valley pipeline, which runs from West Virginia to Virginia. Even though negotiators tried to wedge in transmission language, a possible bill in the mix — from Sen. John Hickenlooper (D-Colo.) and Rep. Scott Peters (D-Calif.) — was ultimately struck and replaced by a two-year study from the Federal Energy Regulatory Commission. “What was added to this bill by folks on our team [at the White House] looks out for the interests of energy producers at the expense of energy consumers and I remain troubled by that,” said Rep. Sean Casten (D-Ill.), who has his own bill to fix transmission lines.

Debt limit deal gives Republicans a win on energy. Is there still room for a bipartisan agreement? - Democrats are giving up an energy bargaining chip in the debt limit deal, raising questions about whether they will be able to accomplish high-priority electricity reforms. For months, Democrats and Republicans have been working on a bipartisan package to speed up permitting for energy projects that could include provisions that both sides want. But in the debt deal that passed the House this week, Republicans get significant energy provisions they have been pushing for, such as limits on environmental reviews. Democrats, meanwhile, did not get their electric infrastructure buildout, a concession that could limit their leverage in future negotiations. Some also argue that Democrats gave up too much and did not get enough on energy in the deal. “I don’t feel that we got what I’d hoped we would get and I feel like we gave up a little more than I would’ve wanted to give up,” Sen. John Hickenlooper (D-Colo.) told reporters Tuesday evening. Lawmakers on both sides of the aisle have been working for months on a deal to speed energy projects and other infrastructure projects. A major driver for Democrats in the negotiations is the potential to build out more power lines, which they argue is key to getting more renewable energy on the grid to fight climate change. Republicans, meanwhile, have been pushing for more procedural changes that they say will speed up energy projects across the board. Such changes include limiting timelines that environmental analyses for projects can take and limiting how long challengers have to sue over projects. Republicans have also released legislation that specifically bolsters oil, gas and mining. Even after the debt deal, Republicans still see more to do and said this week that they want to play ball with Democrats to get a bipartisan deal done. Sen. Kevin Cramer (R-N.D.) told reporters Wednesday that he sees the permitting issue going “one of two ways.” “One way might be to check the box, we did this, and then never think about it again. The other possibility would be that we create a little bit of momentum and say, ‘OK, now let’s get serious and drill down a little bit,’” he said. “I hope it’s the latter.” Speaking at a Republican leadership press conference, Sen. Shelley Moore Capito (W.Va.), the top Republican on the Senate Environment and Public Works Committee, described the debt limit deal as giving lawmakers a “jumping point to start off again in our bipartisan talks” on permitting. She separately told reporters that she specifically hoped to see reforms to the judicial review process. On the House side, a spokesperson for Natural Resources Committee Chairman Bruce Westerman (R-Ark.) also said he hopes to get more done on the issue. “We hope to come back to the negotiating table to get judicial review across the finish line as well, and the Dems may try to move transmission reforms as part of a bipartisan compromise,” spokesperson Rebekah Hoshiko said via email. However, some are skeptical that a bipartisan deal is achievable. “There’s a bipartisan interest in pretending that there’s a broader deal,” quipped Rep. Sean Casten (D-Ill.). “These guys can barely get their act together” to prevent financial disaster, he said. “There’s no way that they are going to have a conversation, much less a bipartisan conversation, about how to inject competition into power markets.”

Compass Mining Announces Ohio Site With Arthur Mining-- Compass Mining, the world's first and largest online marketplace for bitcoin mining hardware and hosting, today announced the energization of its newest site, Ohio 2, in a new hosting deal with Arthur Mining. Compass Mining was the first to open the doors to retail exposure inBitcoin mining through its direct purchase and hosting packages. Compass Mining's newest site pairs industry leading hosting provider Arthur Mining with Compass Mining's own operations team in order to deliver high machine uptime and facility performance. "The site's size, location and management are the profile of hosting provider Compass seeks to offer its clients." At 20 megawatts in size, Ohio 2 the site is fueled by a grid mix of hydro and natural gas power. Machines are hosted in industry leading RK Mission Critical 'Disruptor 2000' containers, the standard for containerized hosting management. The site will be the first co-operated by the Compass Mining facility and operations team directly. Compass Mining is a bitcoin-first, proof-of-work mining company on a mission to strengthen Bitcoin's network by democratizing hash rate. Compass' mining marketplace offers easy procurement and deployment of mining machines for institutional and retail clients. Compass Mining also produces industry-leading research and educational content through a variety of tailored media product offerings. Mining is a notoriously opaque sector of the Bitcoin industry, but Compass now serves as the guide for everyone's path to successfully mining bitcoin. Thanks to Compass, now everyone can mine bitcoin.

Individuals Can Now Mine Bitcoin via Compass Ohio 2 Facility | Marcellus Drilling News - We’re about tell you about bitcoin mining and blockchains, a topic we know VERY little about. We feel like we’ve entered the Twilight Zone! However, we believe there’s a connection (in this case) with the Utica Shale. So strap in and hold on…We spotted a press release from a company we hadn’t heard of before called Compass Mining, which claims it is the world’s first and largest online marketplace for bitcoin mining hardware and hosting. (Hold on, we’ll explain that in a moment.) Compass Mining says it has partnered with another company, Arthur Mining, to launch a bitcoin mining site in Ohio, called Ohio 2.

Saudi Arabia Wants to Have Buses Running on Hydrogen Next Year -- The Neom hydrogen project, part of a $500 billion industrial and tourist development on Saudi Arabia’s Red Sea coast, will begin producing fuel for transportation next year, according to the head of the venture. By mid-2024, Neom will be making hydrogen for vehicles such as buses and trucks, Dave Edmondson, chief executive officer of Neom Green Hydrogen Co., said in Dubai. A larger plant, focusing on exports, is also being developed. NGHC — a venture between local firm ACWA Power, state-backed Neom and US-based Air Products & Chemicals Inc. — is part of Riyadh’s ambitious plans to expand in clean-tech industries as it prepares for a future beyond fossil fuels. Green hydrogen is still far more expensive than oil and natural gas, but developers are confident they can reduce costs enough to make it competitive. The bigger plant, a $8.5 billion project designed to produce 600 tons of hydrogen a day using wind and solar power, will start exporting fuel in the form of ammonia in 2026. A third hydrogen facility, potentially up and running in 2028 or 2029, would likely be aimed at supplying energy to local industry, according to Edmondson.

Biden tries a new way to get China to reduce emissions: economic pressure - The Biden administration is searching for ways to push the world’s largest polluter to reduce carbon emissions, as superpower rivalries engulf a fragile bilateral relationship that could determine the future of global warming.Since negotiations between U.S. climate envoy John F. Kerry and his Chinese counterparts stalled in August, Chinese provinces have accelerated their approvals of new coal power plants, sparking fears that China is moving away from its climate goals, not toward them. Now Biden administration officials are trying to get talks back on track even as they also explore other tools, such as tariffs, that could be tied to the emissions level of products such as steel and aluminum.How to navigate relations with China was a major focus of the Group of Seven summit this month. Leaders offered a host of tough-on-Beijing language and urged countries that “have the capabilities and are not yet among the current providers of international climate finance” to step up and do more to help developing nations invest in climate-related projects. That was a reference to China and other economically powerful players such as Middle Eastern oil nations.Chinese factories that churn out batteries, solar panels and others key ingredients of the energy transition are so dominant that any global effort to reduce emissions will end up deeply dependent on Beijing, even as U.S. policymakers try to move manufacturing back to the United States in what G-7 leaders called “de-risking, not decoupling.”“We ultimately can’t solve climate change without China. It’s by far the largest emitter in the world,” said Joanna Lewis, a China specialist at Georgetown University. “If we just say, ‘okay, we’re going to walk away from that opportunity to engage with them constructively,’ I don’t see how that helps us solve climate change globally.”China’s annual emissions are more than double those of the United States, and it is set to surpass U.S. historic emissions by 2050, making it the most important single actor in determining whether the world can avert the worst effects of climate change. The picture there is mixed: Even as China has approved new coal plants, it has also moved aggressively on renewables.

The Decline In Coal Appears To Have Been Exaggerated --Despite big promises of a green transition and the creation of ambitious climate pledges, some countries are continuing to support the development of new coal mines. The U.K. and Australia both have coal facility plans that could go against their climate pledges, while there is no sign of slowing down China’s coal industry. So, just what does this mean for the green transition of these countries and globally?In December 2022, the U.K. announced plans to build its first new coal mine in three decades. The $204 million project will be constructed in Whitehaven in Cumbria and is expected to produce 2.8 million tonnes of coking coal annually, as well as create 500 jobs. The plan is to export most of the coal produced, as the U.K. expects to increase its renewable energy capacity to stop the need for domestic coal use.Many U.K. steelmakers have already stated that they will not be using coal from the development. And several European steel producers are also transitioning away from coal in response to mounting pressure from governments to decarbonize operations. Companies working in the heavy industry sector are now looking to renewable energy to power their facilities, where possible.The mine is expected to produce 400,000 tonnes of greenhouse gas emissions a year, equivalent to around 200,000 car emissions. This will contribute heavily to the U.K.’s carbon emissions at a time when it is expected to shift away from carbon-intensive energy production in support of an accelerated green transition. Although the government has stated that the development is still possible within the scope of the U.K.’s climate legislation, with no doubt that it can achieve the net-zero scenario by 2050 following the closing of all coal operations by 2049. However, an analysis published in January suggested that this view is overly optimistic and that the coal project will likely break U.K. climate pledges.Laura Clarke, the CEO of environmental law firm Client Earth, said the move is “unforgivable” and “Makes no sense in terms of the science, the economics, or indeed the UK’s legally binding netzero commitments.” This is a widely felt sentiment and many believe that the government will face a legal battle if it wants the development of the coal mine to go ahead.In May, in Australia, the government approved a new coal mine for the first time since it was elected last year. The Isaac River mine will be constructed near Moranbah, in the Queensland Bowen basin, with a projected production capacity of 2.5 million tonnes of coal over five years. Much like the U.K. project, the development will be aimed at extracting coking coal used for steelmaking.Environmental groups quickly responded to the news, asking the government to reconsider the mine as it does not align with Australia’s climate pledges. Several organizations have suggested that it could be detrimental to the habitats of several endangered species, such as the koala, the central greater glider, and the ornamental snake. If the development goes ahead, it could lead to the emission of 7 million tonnes of greenhouse gases in its lifetime.

Draft EPA rule could impact nearly 50 Indiana coal ash dumps —Draft federal regulations for toxic coal byproducts could cover nearly 50 exempted dumps spread across 14 locations in Indiana.The Environmental Protection Agency’s rule — released last week— would extend monitoring, closure, and cleanup provisions to certain landfills, ponds and other sites for the first time. “Coal ash,” the catch-all term for particulate matter produced by burning coal, can contain dangerous carcinogens like arsenic, cadmium and mercury.“This is a really big deal,” said Lisa Evans, senior counsel for nonprofit environmental litigator Earthjustice, in a news release. The proposal arises out of settlement to a lawsuit involving the organization, several Hoosier plaintiffs and others. Sites: Bailly, Breed, Clifty Creek, Dean H. Mitchell, Edwardsport, Frank E. Ratts, Gibson, Merom, Michigan City, Noblesville, R. Gallagher, Stateline Energy, Tanners Creek, Warrick. “For far too long, a large portion of toxic coal ash around the U.S. was left leaching into drinking water supplies without any requirement it be cleaned up.”Although utilities for decades have dumped coal in unlined landfills and ponds throughout the country, no national standards for coal ash existed until 2015.That year, an initial EPA rule went into force. But it excluded landfills that stopped taking in waste before the effective date, as well as ponds at power plants that stopped generating energy before the effective date.An Earthjustice analysis found that the regulations left out 566 landfills and ponds and 242 plants in 40 states. In Indiana alone, that meant 25 landfills and 23 ponds at 14 sites.Earthjustice represented a coalition of groups that sued the EPA that year, culminating in a 2018 D.C. appeals court decision that nullified the exemptions. And the organization filed suit again in 2022, on behalf of several Indiana organizations and others, seeking to force promulgation of new requirements tailored to the exclusions.Last week, the EPA released the draft regulations. Those in charge of the 48 dumps left out of the original rule could face new requirements if it’s finalized — although the EPA said it would phase compliance deadlines in.

Feds sue Justice's family coal companies and son over millions in mine cleanup penalties - wvgazettemail.com -- Gov. Jim Justice's family coal businesses and son were named in a lawsuit filed by the U.S. Department of Justice Wednesday saying they haven’t paid over $5 million in penalties assessed by the Office of Surface Mining Reclamation and Enforcement. The feds say the businesses failed to pay uncontested penalties after being cited for more than 130 violations from 2018 to 2022. Coal companies controlled by Gov. Jim Justice’s family are again in trouble with federal prosecutors who say they’ve failed to pay what they owe the United States government in penalties for a long list of mine cleanup violations. The U.S. Department of Justice on Wednesday sued 13 Justice family-controlled companies and Gov. Justice’s son, James C. “Jay” Justice III, in federal court, saying they haven’t paid more than $5 million in penalties assessed by the Office of Surface Mining Reclamation and Enforcement.

DOJ sues Jim Justice’s coal empire over unpaid fines for mining violations -The Justice Department is suing the coal empire of West Virginia Gov. Jim Justice for failing to pay more than $5 million in civil penalties assessed by the Department of the Interior.The 128-page civil action, filed Tuesday against 13 of the Justice family businesses and Justice’s adult son, comes as the governor, a Republican, launches a Senate bid against Sen. Joe Manchin (D-W.Va.).The suit alleges that the businesses failed to pay fines for more than 100 violations of federal mining regulations that created “health and safety risks” or threatened “environmental harm.” Justice Department attorneys are seeking a court order to force the Justice companies to repay the fines, with interest.The bulk of the lawsuit spells out the individual violations of federal mining regulations, overseen by the Office of Surface Mining Reclamation and Enforcement. The Justice Department notes that the imposition of these penalties was “uncontested.” In addition to the 13 mining companies, the suit identifies Jay Justice, the governor’s son, as the “owner, controller, and/or agent of each of the Justice Companies.” Although the suit doesn’t name the elder Justice, he’s faced scrutiny before for the unpaid fines as well as reports that he’s still maintained a firm grip on the family business. Republicans made clear they will seek to frame the suit, without evidence, as part of a campaign of political targeting by the Biden administration’s Justice Department. A spokesperson for the National Republican Senatorial Committee accused Democrats of “weaponizing the federal government to attack the family of a Republican Senate candidate.”

Attorney says West Virginia governor refusing to pay judgment in coal lawsuit (AP) — West Virginia Gov. James Justice is refusing to pay a balance of $1.9 million on a judgment against him and one of his family-owned coal companies in a federal lawsuit, an attorney for a Pennsylvania coal exporter said Friday. Justice, who is running for the Republican nomination for U.S. Senate in West Virginia, also has refused to respond to information requests from Xcoal Energy & Resources, which is trying to collect what it is owed, attorney Daniel Garfinkel told a federal judge in Delaware. “Xcoal has demanded payment. It has not been forthcoming,” he told Judge Leonard Stark. Friday’s hearing came just days after federal officials filed a lawsuit in Virginia against 13 coal companies owned by the Justice family, saying that they have failed to pay millions of dollars in penalties for mining law violations. Justice is not named as a defendant in the lawsuit. But he nevertheless suggested it is a political ploy to squelch his bid to unseat Democratic Sen. Joe Manchin. Justice’s companies have been frequently targeted in lawsuits over unpaid bills. In a recent filing in Kentucky, an attorney for the companies noted that only about a dozen of the 100-odd Justice coal and farming companies have continued to actively operate, and that “operating cash is chronically scarce and transferred among companies on a just-in-time basis.” Testimony from company representatives described “a somewhat disorganized organization whose resources are stretched to the limit with respect to both finances and personnel,” the attorney added. In Delaware, Xcoal sued the coal magnate and two of his companies, Roanoke, Virginia-based Bluestone Energy Sales Corp. and Southern Coal Corp., in 2018, saying that they failed to fulfill an agreement to deliver hundreds of thousands of tons of coal for shipment overseas. Xcoal and Bluestone entered into an agreement in 2017 under which Bluestone would supply Xcoal with 720,000 net tons of metallurgical- grade coal from a mine in Bishop, West Virginia. Southern Coal and Justice guaranteed the payment and performance obligations of Bluestone, a pass-through entity with no assets.apnews.com

1 person dead in power plant explosion in Texas - One person died Wednesday in a power plant boiler explosion on Wednesday morning, authorities said. The incident occurred at 8 a.m. during the commissioning of a new auxiliary boiler, leading to the on-site team immediately calling 911 and implementing emergency response protocols. Robertson County first responders went to the Oak Grove Power Plant in Franklin after initial reports of an explosion with multiple injuries, according to the Robertson County Emergency Management. Upon arrival, crews found that there was an explosion from a boiler, and there was one person seriously injured who succumbed to their injuries. There were no other injuries, and the incident is under control. All other employees and contractors have been accounted for and there are no other known injuries at this time. Oak Grove remains in operation and is generating electricity. The cause of the explosion is under investigation.

Over half of the contaminated water leaked at nuclear plant recovered, Xcel says —-- More than half of a radioactive isotope that leaked from a pipe at a Minnesota nuclear plant has been recovered, while crews are making “substantial progress” in recovering contaminated groundwater, officials said. The pipe initially leaked in November 2022 at the Monticello Nuclear Generating Plant, allowing 400,000 gallons (1.5 million liters) of water containing tritium to spill. The first leak wasn't publicly announced until March, after a second leak was discovered at the site of a temporary fix to the first release. Industry experts have said the spill did not threaten public health, despite the monthslong delay in announcing the initial leak. The nuclear plant, which provides more than 500,000 homes with energy, was shut down in March for repairs and cleanup. It was returned to service about a week later. The plant is about 38 miles (60 kilometers) northwest of Minneapolis. Monticello city leaders said in a news release Tuesday that Xcel Energy, which owns the plant, has collected 53% of the tritium and crews have pumped more than 1.1 million gallons of water at the plant. The company expects the pumping to continue through the year. Xcel officials have said the contaminated water remained on site and did not reach the Mississippi River. Monitoring equipment continues to confirm the water was contained on site, according to Tuesday's statement. The only issue in the recovery occurred on May 21, when 300 to 600 gallons of pumped groundwater overflowed from a holding tank, officials said. That water will be collected again as part of the recovery effort. The concentration of tritium in the groundwater has declined and there have been no recorded measurements of the isotope beyond the plant, officials said.

US urged not to use bomb-grade uranium in nuclear power experiment - (Reuters) - Former U.S. State Department and nuclear regulatory officials on Tuesday urged the U.S. Energy Department to reconsider a plan to use bomb-grade uranium in a nuclear power experiment, saying that its use could encourage such tests in other countries. The Energy Department and two companies aim to share costs on the Molten Chloride Reactor Experiment (MCRE) at the Idaho National Laboratory and use more than 1,322 pounds (600 kg) of fuel containing 93% enriched uranium. Bill Gates-backed company TerraPower LLC, the utility Southern Co and the department hope the six-month experiment will lead to breakthroughs in reactors that could help reduce pollution linked to climate change. But a group of former Nuclear Regulatory Commission members, including former Chairman Allison Macfarlane, and U.S. assistant secretaries of state responsible for nonproliferation, said MCRE could give other countries an excuse to enrich uranium to bomb-grade level in pursuit of new reactors. "The damage to national security could exceed any potential benefit from this highly speculative energy technology," the experts said in a letter to Energy Department officials. They fear an increase in such experiments boosts risks that militants looking to create a nuclear weapon could get hold of the uranium.

Court battle over Randazzo docs gets nasty - Ohio Capital Journal ---Sam Randazzo, the former chairman of the Public Utilities Commission of Ohio, isn’t even a defendant in a massive class-action lawsuit against Akron-based FirstEnergy. But a battle is growing bitter over documents regarding $4.3 million FirstEnergy paid a group controlled by Randazzo just as Gov. Mike DeWine nominated him in 2019.The dispute arises from a bribery and money-laundering scandal that took place between 2017 and 2020. In it, FirstEnergy and other utilities paid more than $61 million to pass a $1.3 billion ratepayer bailout that mostly went to prop up two aging nuclear plants in Northern Ohio that FirstEnergy was trying to spin off.Former Ohio House Speaker Larry Householder, R-Glenford, and former Ohio Republican Party Chairman Matt Borges in Marchwere convicted of racketeering for their roles in the scheme by a federal jury sitting in Cincinnati. They’re scheduled to be sentenced at the end of June and now there’s rampant speculation about who might be indicted next.FirstEnergy signed a deferred prosecution agreement and agreed to pay a $230 million criminal penalty. FirstEnergy’s former CEO, Chuck Jones, and its former Vice President, Michael Dowling, directed the $4.3 million payment into the bank account of a group controlled by Randazzo, the Sustainability Funding Alliance of Ohio. In a recent court filing, Radazzo’s attorney, Roger Sugarman, made a disclosure that seems to indicate that the Sustainability Funding Alliance didn’t have much of an existence beyond Randazzo.“SFAO has never had, nor has it maintained an email account, email address, computer, or mobile phone (different from those used by Mr. Randazzo.),” Sugarman wrote. Randazzo, Jones, and Dowling deny paying or taking bribes, but in its deferred prosecution agreement, FirstEnergy said it “paid $4.3 million dollars to (Randazzo) through his consulting company in return for (Randazzo) performing official action in his capacity as PUCO Chairman to further FirstEnergy Corp.’s interests relating to passage of nuclear legislation and other specific FirstEnergy Corp. legislative and regulatory priorities, as requested and as opportunities arose.”During the March criminal trial in Cincinnati, prosecutors put on evidence that even though he was supposed to be regulating FirstEnergy, Randazzo helped draft House Bill 6, the corruptly passed bailout law.Neither he, Jones, or Dowling has been charged in the case, but the FBI searched Randazzo’s Columbus condo in the months after Householder was arrested and lawyers for the two former executives have made recent court filings saying they believe their clients are in the feds’ crosshairs. A judge in the class-action case against FirstEnergy denied a request by Jones and Dowling to delay sworn depositions even though she agreed that they faced the possibility of self incrimination.Investors — including large public-pension funds — are suing FirstEnergy as well as Jones and Dowling personally. They’re arguing that their reckless conduct in the bailout scandal improperly cost investors big money.

AEP Ohio's 28% bill increase starts June 1 — Thursday marks the beginning of a nearly 30% markup on bills for a major portion of American Electric Power’s customers in Ohio.The electric utility company warned previously that customers would be seeing a 28% rate increase after the latest competitive auction for electricity generation on March 7. As a dollar amount, that comes out to a $198 monthly bill compared to $155 for a customer using 1,000 kilowatt-hours of electricity, according to AEP Ohio’s estimates. “Unfortunately, this change is out of our control and was determined by recent auctions to secure the energy supply needed to serve our customers,” AEP Ohio President Mark Reitter wrote in March. Because the state’s energy market is unregulated, utility providers like AEP take bids from companies that generate power fed on the grid to a customer’s home. The Public Utilities Commission of Ohio oversees this auction process and creates a Standard Service Offer (SSO), which sets the per-kilowatt-hour price of generating electricity before it is supplied to AEP Ohio and then to users. PUCO spokesman Matt Schilling said multiple external factors came into play when setting that new rate. “The inflationary pressure that the entire economy is facing, and upward pressure on the price of natural gas due to the war in Ukraine, meant that the auction prices that cleared to provide energy came in at a significantly higher price,” Schilling said.

Ohio opens door to applications for oil and gas drilling underneath state parks - A screenshot of a map enclosed in documents, obtained in a public records request, Encino Energy submitted to the state of Ohio in an offer to buy leasing rights to drill for oil and gas under Salt Fork State Park. The state's new process for applying to drill underneath state parks and other state-owned land took effect Tuesday. —After more than a decade of delays, oil and gas drillers will be able start applying Tuesday for permission to drill underneath Ohio state parks and other state-owned lands. “It’s like a ribbon-cutting,” said Mike Chadsey, director of public relations for the Ohio Oil and Gas Association. “State lands leasing is open – cut the ribbon and see who’s interested.” Already, energy companies have expressed interest in drilling under state lands, though it will take at least six months – and possibly much longer than that – before any drilling could start. It’s also unclear how big of a payday Ohio could be in for, and there are already warnings about significant restrictions on how state officials could use any money they get from oil and gas drilling. Under the new rules that take effect Tuesday, oil and gas drillers will be able to nominate parcels of land for potential drilling to the Ohio Department of Natural Resources’ Oil & Gas Land Management Commission. Gov. Mike DeWine has said that the state won’t allow any new drilling activity – such as rigs, roads, or tanks – on state-owned land while he’s in office. However, energy companies could still access oil and gas underneath state land by setting up wells on adjacent private property and drilling horizontally to extract oil and gas from underneath state land. If the commission signs off on a drilling request, a lease agreement could be reached starting sometime after this October, ODNR Director Mary Mertz said in testimony earlier this month to an Ohio Senate committee. However, she added, state law allows a company to enter into a lease and not act on it for six years. “And I have been told there is at least one energy company that may seek to extend that time to 10 years,” she stated. While it remains to be seen how many applications the state will receive, at least one company – Texas-based Encino Energy – has offered the state a signing bonus of $115 million and royalties it says could total nearly $2 billion if it’s allowed to drill for oil and gas underneath Salt Fork State Park in Southeastern Ohio. “I think there has been and continues to be a lot of interest,” Chadsey said. “But I don’t know that anybody’s going to see a line at the door at 8 a.m. (Tuesday) or anything like that.” Mertz testified that her department doesn’t yet know how much money it stands to bring in from oil and gas leasing. Senate President Matt Huffman, a Lima Republican, suggested in March that fracking revenue from state lands could be used to pay for legislative Republicans’ plan to cut state income taxes. However, Mertz told lawmakers that any money paid from oil and gas drilling under state parks could, under Ohio law, only be spent by the Ohio Division of State Parks and Watercraft. Mertz also cautioned that because thousands of acres of ODNR land – including all of Salt Fork State Park – were bought or improved with money from a National Park Service grant program, National Park Service officials may have control over how any oil and gas revenue from those properties is spent. She said National Park Service officials have indicated they will only allow the state to spend such revenue on certain things, such as acquiring land for outdoor recreation, picnic facilities, trails, and camping facilities. “If the revenue from leasing these properties is diverted for unapproved uses, the state could be responsible for replacing millions of dollars’ worth of property,” she stated. The Oil & Gas Land Management Commission was created in 2011, but for years it remained inactive because then-Gov. John Kasich didn’t appoint anyone to it. DeWine appointed commission members after he took office in 2019, but until now no rules have been in place setting up the permitting process – such as creating a standard application form. Last December, the Republican-dominated state legislature jump-started the process by passing legislation – which DeWine signed – that required state agencies to approve all drilling lease applications until the Oil & Gas Land Management Commission put the needed rules in place. Since that legislation, House Bill 507, took effect last month, ODNR hasn’t received any applications to drill in state parks, according to department spokesman Andy Chow. Chadsey said that’s because the oil and gas industry wanted to wait until state officials put the new permitting rules in place.

Ohio State Lands Now Open for O&G Leasing – Virtual Ribbon-Cutting | Marcellus Drilling News -- Yesterday the virtual ribbon was cut, and drillers could, for the first time, begin to apply for permits to drill under (not on top of) Ohio state lands and state parks. In January, Ohio House Bill (HB) 507 became law with the signature of Gov. Mike DeWine (see OH Gov. Signs Bill Expanding Drilling in State Parks, NatGas “Green”). The new law allows shale drilling under Ohio state-owned land. In fact, it encourages (pushes for) more drilling under state-owned land. The question now is, will anybody show up and apply? Chances are pretty good they will.

Fracking debate continues as Ohio begins parcel leasing | NBC4 — Oil and gas companies can now request parcels of Ohio public land so it can be leased for oil and gas extractions. The new law defines Ohio public land as including parks, forests, and wildlife areas.Cathay Cowan Becker with Save Ohio Parks said she is worried about the environmental and health impacts. “If you’re hiking or you’re trying to stargaze and just outside the park there are frack rigs that are flaring methane, that’s going to make it really hard for you to do what you came to that park to do and what all our citizens are paying to support,” Cowan Becker said.Others said this could be a good thing for Ohio’s economy and could give money back to the state. Plus, Ohio Oil and Gas Association President Rob Brundrett said the process of drilling on public land is nothing new in Ohio and it won’t be disruptive because it happens underground.“The drilling will all take place on private land off public property and then they’ll drill down very, very deep under the property so you don’t see any surface disruption,” Brundrett said.Cowan Becker said oil and gas drilling can cause methane leaks which can contribute to global warming. She doesn’t want to see our parks and forests turn into fracking sites, even if the drilling happens underground.“This is what we have in Ohio to go enjoy nature, see nature and acquaint kids with nature and it’s just not right to allow that to be degraded and polluted through fracking,” Cowan Becker said.

On day one, Ohio gets eight applications to frack on state lands - cleveland.com -- – On the first day under a new legal regime, the state received eight applications to drill for oil and gas under state lands, a spokesman said Wednesday. Ohio Department of Natural Resources spokesman Andy Chow didn’t provide further detail including the identities of the applicants and where they want to drill, or details from their proposals, such as signing bonuses, royalty payments and water use deals. He said the count is current as of 5 p.m. Tuesday. He said the department is in the process of posting non-confidential portions of the applications online. The eight offers on the table mark a new chapter in the roughly 12-year-old effort to drill for oil and gas under state lands, which could include some of Ohio’s most pristine state parks. Republican lawmakers in 2011 passed legislation that first allowed for fracking on state lands, but the policy never took on its full force as its administrative rules were never written and enacted. This year, GOP state lawmakers passed legislation that successfully pressured the Oil and Gas Land Management Commission to roll out the rules that took effect Tuesday. Should the commission sign off on a drilling request, leases could be bid out and finalized by October, according to Ohio Department of Natural Resources Director Mary Mertz. Just before Tuesday’s rollout, Ohio Oil and Gas Association spokesman Mike Chadsey likened the event to a “ribbon-cutting.” Chadsey said Wednesday he didn’t immediately have information available about the eight applications. Mertz, in May 9 budget testimony to state lawmakers, downplayed the likelihood of drilling interest. Under the new process, the Oil and Gas Land Management Commission must post notification of industry’s “nomination” to lease the state land. This opens a 45-day comment period followed by a commission ruling not more than 120 days after the nomination comes in. The commissioners must consider the economic benefits, current land use, environmental impact, geological impact, impact to visitors, public comments, and other factors before approving or denying the nomination. Approved nominations then go out to bid. The ultimate decision comes down to a board with an industry tilt. By state law, the four-member commission is comprised of two people with “knowledge or experience in the oil and gas industry” who are recommended by an industry trade association; one person with expertise in finance or real estate; and one representing environmental or conservation interests. However, if the lease proposal calls for surface use on state property, the “sole discretion” over whether to enter a surface use agreement lies with the state agency that owns the land, not the OGLM. Gov. Mike DeWine, who selects the agency heads, said when he signed the recent legislation that his administration will not enter any surface use agreements on state parks. That could change with his successor. Even without surface impacts, the new state law could yield state parks essentially surrounded by well pads making underground inroads to the ore below. Drillers have done so under a few recreational parks under control of Ohio’s Muskingum Watershed Conservancy District since 2011. A few miles away from the picturesque hubs of swimming, boating and camping lies a ring of wells, processors and other gas infrastructure around locales like Tappan Lake. The sprawling conservancy district has leased 31,000 subsurface acres under its land to gas companies for $278 million in signing bonuses and royalty payments. Meanwhile, it has sold 1.2 billion gallons from its freshwater bodies to power the drilling. The 2011 law allowed state agencies, if they choose, to lease state lands. But a last-minute amendment to unrelated legislation that passed late last year instead forced state agencies to lease state lands following an application by a qualified driller. This scheme was in effect until the new rules took effect Tuesday, although no drillers seized the opportunity. That same bill last year also legally redefined natural gas as “green energy,” despite the fact it comes from shale (a fossil fuel) and produces climate-warming greenhouse gasses like methane and carbon dioxide. It passed with behind the scenes involvement from a dark money entity linked to Ohio’s gas industry and drew lobbying attention from the likes of the American Petroleum Institute, Ascent Resources, Vectren Energy, Diversified Gas and Oil, EQT Corp., the Ohio Coal Association, the Ohio Oil and Gas Association, and TC Energy. As Cleveland.com and The Plain Dealer previously reported, Texas-based Encino Energy submitted a $2 billion offer to frack under Salt Fork State Park in Southeast Ohio late last year. The state rejected the offer while it still had the legal authority to do so. A spokesman DeWine previously said the offer was rejected out of deference to the commission.

Dangers of Fracking Wastewater Put Spotlight on Halliburton Loophole -A law known as the "Halliburton Loophole" is under growing scrutiny. It exempts oil and gas companies from revealing the chemicals they use in the hydraulic fracking process. The latest study finds between 2014 and 2021, companies used hundreds of millions of pounds of toxic chemicals - without any governmental oversight. Another report published last year by scientists and medical organizations says living near fracking sites increases risks for cancer, respiratory diseases, heart problems, birth defects and more.Leatra Harper, managing director of the Freshwater Accountability Project, explained that the loophole prevents communities from understanding potential harms.
"People need to know what the exposures could be," said Harper. "We need to know what the chemicals are to look for when we find water contamination. And we don't even know how to test for it, because we don't know what to test for."The Independent Petroleum Association of America and other industry groups argue that fracking poses little to no risk of harmful health effects. The group FracTracker estimates hydraulically fractured wells produce about 2.3% of the oil and gas output in Ohio.Harper added that previously proposed federal legislation would have addressed the issue by requiring companies to reveal which chemicals they use in the fracking process.There's something called the FRAC Act that has just basically been mothballed," said Harper. "And we need to revive that and fix this problem that started at the federal level, that allowed this industry to take off."As of 2022, hydraulic fracturing techniques have been used on an estimated 1.7 million wells across the U.S.

Fracking can contaminate soil and poison groundwater. Maya K. van Rossum wrote a book on how to strengthen your state's Bill of Rights to stop this from happening --Back in late April, I attended an Earth Day celebration, where I met a thoroughly remarkable woman, Maya K. van Rossum. An attorney based in Pennsylvania, van Rossum has served as the Delaware Riverkeeper since 1994. As she explained to me, that means she is responsible for coordinating a network of advocates who guard the health of that river, which drains 13,539 square miles in the states of Pennsylvania, New Jersey, Delaware and New York. A principal threat that van Rossum and her colleagues have confronted is the environmental devastation caused by fracking. They had succeeded in securing a temporary ban on fracking within the watershed by 2012 when the fracking industry struck back. Working behind closed doors, industry leaders assembled a bill (Act 13) that would greatly loosen public control of their activities in Pennsylvania and succeeded in pushing this through the state legislature and getting it signed by the governor.Because of its temporary fracking ban, this new law wouldn’t have immediately affected the Delaware watershed, but van Rossum takes an ecosystem-wide view of environmental protection. She discovered that the Pennsylvania state constitution included a clause in its Bill of Rights section which affirmed that residents had a right to pure water, clean air and a healthy environment. Joining with seven municipalities that were concerned that the new law deprived local communities of the right to regulate fracking within their borders, the Delaware Riverkeeper Network brought a suit before the Pennsylvania Supreme Court that charged Act 13 with violating the state Bill of Rights. In December of 2013, the plaintiffs won.Van Rossum pointed out to me in a conversation last May that most existing environmental regulations, including the landmark Clean Water and Clean Air Acts of the 1970s, essentially took ongoing pollution and environmental degradation for granted. All these laws did was to regulate how and to what extent these harms would be permitted. Her experience with Act 13 suggested that the language in Pennsylvania’s Bill of Rights was a far more powerful tool for protecting the environment. When van Rossum checked, however, she found that Montana was the only other state with a similar guarantee. She resolved to change that.

Sara Innamorato Upends Fracking Politics in Pennsylvania - Pundits and political insiders have spent years warning candidates in Pennsylvania that taking on the fracking industry means certain defeat. Those of us who live here know better. We aren’t afraid to fight corporate polluters—and we are showing that doing so is a winning strategy. Sara Innamorato’s resounding victory in the primary race to be the next Allegheny County Executive shows that bold candidates can defy conventional wisdom by taking on the fossil fuel industry in its own backyard. And they are succeeding thanks to powerful grassroots organizing that reaches voters directly. This county executive is one of the most powerful positions in the state—arguably the second- or third-most powerful office in Pennsylvania. The outgoing executive, Rich Fitzgerald, made a name for himself by being an unwavering ally of the drilling industries. Fracking was welcome in our county. Our movement is unquestionably bolstered when leaders like Sara Innamorato wield their own political power to stop the fossil fuel industry. And she is not alone. Those of us who live here know that what the industry promises—jobs and economic prosperity—is little more than a mirage. The jobs are few, the profits are siphoned away by executives and Wall Street investors, and we are left with air and water pollution, degraded property values, and a wide range of health problems.That’s why we organize on the ground in communities that are being targeted for drilling. We have developed strategies that use local zoning ordinances to keep the frackers away from our schools and neighborhoods. Last year, we defied all the odds – and County Executive Fitzgerald’s veto—by banning fracking in all of our county parks. Next up: banning fracking countywide.Our movement is unquestionably bolstered when leaders like Sara Innamorato wield their own political power to stop the fossil fuel industry. And she is not alone. Summer Lee was a community leader in the fight to stop a fracking well in Braddock - the town famously synonymous with its former mayor ( and current U.S. Senator) John Fetterman. In 2018, Lee ran a successful campaign for a State House seat, part of a wave of bold climate champions (including Sara Innamorato) that we helped send to Harrisburg that year. They arrived in a state capital that has historically been controlled by dirty energy interests. But they pushed for bold climate legislation that would keep fracking in check and help build a green economy that works for everyone. Innamorato championed the Whole-Home Repair Act, a first-in-the-nation program that provides grants and loans to bolster energy efficiency, along with workforce development programs to create jobs in communities across the state. In 2021, Summer Lee decided to run for a Congressional seat representing Allegheny County. Outside interests poured millions into the race, inundating mailboxes and clogging the airwave with outrageous attacks. But big money was no match for the people power that Lee and grassroots organizers have built; she won the primary and the 2022 general election. Innamorato blazed a similar trail this year, with a fiery campaign that attracted dedicated volunteers eager to get the word out. For our part, Food & Water Action knocked on 40,000 doors, made thousands of texts and phone calls, and even wrote over 1,500 letters to voters. This is the model for building political power—in Pennsylvania and anywhere else. Community organizing is rarely glamorous work, but it’s the only way to develop deep connections with folks who are quite literally on the frontlines. In Allegheny County and across the country, that means going to council meetings and community get-togethers with neighbors who want to stop fracking near their kids’ school. It means showing up to support families who have lost their water, or whose lives have been turned upside down by illnesses they suspect are connected to the drilling in their neighborhoods. We cannot always give people the comfort they need. But we give them the respect they deserve, and empower them to fight back. And when we work to elect candidates like Sara Innamorato, we bring all of our voices into the halls of power—which strikes fear into the hearts of the fracking bosses who wish we would just go away. No chance. We’re just getting started.

8 New Shale Well Permits Issued for PA-OH-WV May 22-28 | Marcellus Drilling News -- New shale permits issued for May 22-28 in the Marcellus/Utica fell again for a second week. There were only 8 new permits issued, down from 12 new permits issued the previous week (and 26 the week before that). This is the latest indicator of a slowdown in gas drilling in our region–the first indicator being a sudden dropoff a few weeks back in the rig count (see U.S. Natural Gas Drilling Rig Count Craters, Down 10% in One Week). Last week’s permit tally included 6 new permits for Pennsylvania, no new permits for Ohio, and 2 new permits in West Virginia. Brooke County, Cameron County, Energy Companies, Olympus/Huntley & Huntley, Range Resources Corp, Seneca Resources, Southwestern Energy,Washington County, Westmoreland County

3rd Circuit Finds Insurer Not Liable for Botched Fracking Operation -- A well servicing company that damaged 53 natural gas wells by using a defective chemical during a hydrofracking operation is not entitled to insurance coverage for a $13 million jury verdict because there was no accident, a panel of the 3rd Circuit Court of Appeals ruled Wednesday. The appellate panel reversed a US District Court decision that found American Home Assurance Co. liable under a general liability insurance policy it issued to Superior Well Service. Even though a jury did not use the exact words “faulty workmanship” in its award, the verdict did say that Superior’s failure to act “in a workman like manner” caused the damage, which means there was no “occurrence” that triggered coverage, the panel said. The opinion said “under Pennsylvania law, faulty workmanship, such as rendering a substandard service or causing damage by use of an unsuitable product, as was the case here, does not constitute an ‘occurrence’ when an insurance policy defines an ‘occurrence’ as an ‘accident.'” In 2007, US Energy Development Corp. contracted with Superior Well Service to use a process known as hydrofracturing to extract natural gas from 97 wells it owned in western New York state. The fracturing, or “fracking” process involves the use of various chemicals, including liquid emulsions, to “stimulate” wells so that they produce more gas. US Energy alleged that Superior used a type of liquid emulsion that was not suitable for its wells. It filed a lawsuit in New York state court alleging that it lost at least $17 million in revenues because its wells did not produce as much natural gas as they should have. In May 2018, a jury determined that Superior had damaged 53 of US Energy’s wells and awarded approximately $6.2 million in damages. With interest calculated by the state court, the total award amounted to $13.2 million. Before the jury returned its verdict, American Home filed a lawsuit seeking a declaration from the US District Court for the District of Western Pennsylvania that there was no coverage for damage to the wells. The insurer cited a 2006 Pennsylvania Supreme Court decision that held faulty workmanship is not an “occurrence” that triggers coverage from an insurance policy that defines occurrence as an accident. The District Court, however, granted summary judgment in favor of Superior. Judge David S. Cercone noted in his order that the jury did not use the term “faulty workmanship” in its ruling. What’s more, the judge said an underground resources and equipment coverage endorsement in the liability policy superseded or expanded the definition of occurrence and provided coverage even if Superior’s own failure to perform the contract in a “workman like manner” caused the damage.

EDITORIAL: Hold gas industry responsible for capping wells - Republican & Herald, Pottsville, Pa. - If you doubt that the coal and railroad industries once dominated the Pennsylvania Legislature, look around. Evidence abounds, more than 70 years after the end of large-scale mining, that the state government allowed mine operators to pollute with impunity. Now, as pollutants from abandoned mines gush into streams and culm piles still tower over many towns, too many lawmakers remain reluctant to ensure that extractive industries clean up their messes. In 2022, the Republican majorities in both legislative houses stripped an independent state board of much of its authority to make some gas drillers accountable for closed wells. The wells in question are "conventional" shallow vertical wells that tap gas relatively near the surface, rather than the deep, horizontally drilled wells characteristic of the Marcellus and Utica shale formations. According to the Department of Environmental Protection, 131 shallow conventional wells were drilled in 2021. To obtain a well permit, a driller must supply a bond to cover closure and cleanup costs, akin to a landlord requiring a security deposit from a prospective tenant. If a driller fails to properly cap a well, the DEP can seize the bond to pay for the work. Prior to the 2022 law, the state Environmental Hearing Board was empowered to review the bond requirements and set new amounts every two years. But the new law eliminates that authority and freezes the bond cost at $2,500 per well. According to the DEP, the median cost to cap a well is $33,000, and it can be as high as $400,000. Bonds for the new generation of deep wells range from a minimum of $35,000 to $500,000, depending on technical specifications for each well. Statewide, there are thousands of uncapped wells from earlier generations of drilling that spew climate-warming methane into the atmosphere and often pose physical dangers. They will cost billions of taxpayer dollars to cap. And they exist because of an earlier generation of irresponsible legislators who refused to hold drillers responsible. Now, lawmakers should pass a pending bill to repeal the free pass that lap-dog legislators gave the industry just a year ago.

Debt limit deal includes controversial W.Va. pipeline - As part of a deal to lift the debt ceiling, the White House and GOP leaders came to a deal that includes the Mountain Valley Pipeline and time limits for environmental reviews. Sen. Joe Manchin (D-W.Va.) touted the inclusion of the Mountain Valley Pipeline in the bill. The controversial pipeline, which would transport fuel from West Virginia to Virginia, has become a key personal project for Manchin, who is up for reelection next year. In addition to approving the pipeline, the bill would also set two-year time limits for the most rigorous type of environmental review. It would limit less rigorous reviews to one year and also implement page limits. When looking to implement similar reforms, the Trump administration found that the average timeline for more rigorous reviews was about 4.5 years. The legislation would make it easier for agencies to exclude entire categories of projects from environmental review if another agency has already issued a similar exclusion for that type of project. It did not include significant reforms to build out the country’s electric infrastructure, as many Democrats had been pushing for. It did, however, require a study of how much electricity can be transferred between the country’s different grid regions and adds energy storage to the types of projects eligible for a program that could provide more coordination in their approval process.

Debt limit bill would speed completion of West Virginia gas pipeline -- A bipartisan debt limit bill struck by President Joe Biden and House Republicans over the weekend would expedite approval of all permits for a West Virginia natural gas pipeline and curtail environmental reviews under one of the country's landmark environmental laws. The Mountain Valley Pipeline, which has been promoted by Sen. Joe Manchin, D-W.Va., would transport natural gas 303 miles from West Virginia to the Southeast, and part of it would cross through the Jefferson National Forest. The construction of the $6.6 billion pipeline is nearly done, though plans have been delayed for several years amid legal setbacks.Climate and civil rights activists and some state Democrats have strongly opposed the pipeline. Scientists have repeatedly warned that the country must halt approvals for new fossil fuel projects and quicken the clean energy transition to avoid the worst effects of climate change.While the Biden administration has imposed an aggressive climate agenda, the president has also taken steps to boost fossil fuel production and work with Manchin and Republicans, who've argued the president's climate agenda is endangering U.S. energy security.Critics of the Mountain Valley Pipeline say it will run through predominantly rural, low-income Indigenous communities and will undermine the country's efforts to curb fossil fuel emissions and pollution that disproportionally harms environmental justice communities. "The dirty debt ceiling deal is essentially an assault on our climate and working families. It is a climate bomb ... and health threat to every community in its pathway," Jean Su, energy justice program director at the Center for Biological Diversity, said during a call on Tuesday. "It's incredibly vital that Congress vote on a clean debt ceiling deal."Proponents say the pipeline is vital to bolstering U.S. domestic energy security, and that the plan was already near completion and set to move forward.The debt limit bill expedites the pipeline's federal permits and limits judicial review. Still, the project could still be held up or blocked by lawsuits.U.S. energy company Equitrans Midstream Corporation earlier this month said it anticipated to finish the pipeline by the end of the year, but added "there remains significant risk and uncertainty, including regarding current and likely litigation.""President Biden protected his historic climate legislation, stopped House Republicans from clawing back record funding for environmental justice projects and secured a deal to get hundreds of clean energy projects online faster all while protecting the full scope of environmental reviews," Abdullah Hasan, a White House spokesman, said."We believe this is a bipartisan compromise that Congressional Democrats can be proud of and that will accelerate our clean energy goals and climate agenda," Hasan said.The deal would also streamline the National Environmental Policy Act (NEPA), a landmark environmental regulation, to limit its requirements on some projects.The agreement would designate "a single lead agency" to develop environmental reviews in order to speed the process, and shorten the time the federal government takes to analyze a proposed plan's environmental impact.Environmental groups argued the NEPA provision would further curtail the public's ability to provide input on fossil fuel projects that would harm overburdened communities. A letter from 175 groups on Tuesday urged Senate Majority Leader Chuck Schumer, House Minority Leader Hakeem Jeffries and members of Congress to vote on a clean debt ceiling bill.

Manchin pipeline in debt ceiling deal prompts Democratic pushback -- The inclusion of a West Virginia gas pipeline championed by Sen. Joe Manchin (D-W.Va.) in the debt ceiling deal is causing consternation among Democrats. Getting the pipeline into the must-pass legislation is a huge victory for Manchin, who has been pushing for congressional approval of the project to fulfill a deal he made with Democratic leaders. But it’s also both a surprise — and hugely controversial with Democrats and environmental groups who say it will lock in lock in more years of fossil-fuel dependency for the country. They say the project is circumventing normal procedures for such works. “Singling out the Mountain Valley Pipeline for approval in a vote about our nation’s credit limit is an egregious act,” Peter Anderson, Virginia policy director with Appalachian Voices, said in a statement Sunday. “By attempting to suspend the rules for a pipeline company that has repeatedly polluted communities’ water and flouted the conditions in its permits, the president and Congress would deny basic legal protections, procedural fairness, and environmental justice to communities along the pipeline’s path,” he added. The debt deal could receive a vote in the House as soon as Wednesday as lawmakers work to pass the package through both chambers by a June 5 deadline. Treasury Department Secretary Janet Yellen has warned the government will not be able to pay its bills if legislation is not enacted by that date. The debt ceiling bill is coupled with spending restrictions won by House Republicans. Both sides have misgivings about the legislation, with conservatives arguing that spending cuts should be greater and progressives saying the administration gave up too much. As a result, votes in both chambers are likely to be close, with opposition coming from members of each party. Virginia lawmakers, who would see the Mountain Valley Pipeline run through their state, were among the most vocal in opposing its inclusion in the bill. The 303-mile vessel would bring gas from West Virginia to southern Virginia. Sen. Tim Kaine (D-Va.) said he will offer an amendment to strip the pipeline from the deal, as did several House Democrats representing Virginia: Reps. Don Beyer, Gerry Connolly, Abigail Spanberger, Bobby Scott and Jennifer Wexton. “Senator Kaine is extremely disappointed by the provision of the bill to greenlight the controversial Mountain Valley Pipeline in Virginia, bypassing the normal judicial and administrative review process every other energy project has to go through,” a Kaine spokesperson told The Hill in an email. “This provision is completely unrelated to the debt ceiling matter. He plans to file an amendment to remove this harmful Mountain Valley Pipeline provision,” the spokesperson said. It’s unclear whether Kaine or other opponents of the pipeline’s inclusion in the legislation will oppose the package if their amendment fails, however.

Pipeline provision in debt ceiling agreement likely to withstand legal challenges - Environmental advocates who have fought the Mountain Valley Pipeline in court for years say a deal between the White House and Congress to force its completion is corrupt and corrosive to democracy. But despite fears in some quarters that the language of the deal built into debt ceiling negotiations will upend the system of checks and balances built in the government, experts say it is likely to withstand any legal challenge.Building the 303-mile pipeline across national forest and hundreds of streams in Virginia and West Virginia requires permits from federal and state agencies overseeing compliance with environmental laws. The U.S. Court of Appeals for the 4th Circuit, which has jurisdiction in those states, has repeatedly blocked those permits as failing to account for environmental damage, particularly construction pollution of local waterways that has led to fines against the company behind the project. Initially planned for completion in 2020, the pipeline project has dragged on for years, and its cost estimate has doubled to $6.6 billion.The language in the debt ceiling deal — which the House approved Wednesday night — directs the federal government to approve any outstanding permits for the pipeline and blocks courts from reviewing them or any other agency action in approval of the project. Any challenge to the deal itself can be heard only by the U.S. Court of Appeals for the District of Colombia. “Can they do this? Almost certainly, yes,” said Jay Austin of the nonprofit Environmental Law Institute. Lawmakers have made similar moves in the past, Austin said, that have been controversial but generally have been held to be constitutional.“All the Constitution says is that there shall be a Supreme Court,” Austin said. “Congress establishes the jurisdiction of the lower courts.”Environmental litigators said they could not think of another bill that exempted a project from all legal challenges after it had repeatedly failed to meet environmental standards.“I think there is a separation-of-powers problem when Congress steps in to overturn judicial process at a case-specific level like this,” said Earthjustice President Abigail Dillen, whose group opposes the pipeline. “That is not how the three branches are intended to work with each other.”

Donations from Mountain Valley Pipeline developers, gas industry have flowed frequently into WV congress members' campaign coffers - West Virginia’s members of Congress have been among the Mountain Valley Pipeline’s most vocal supporters. Support has flowed both directions between the lawmakers and the pipeline.Manchin and Sen. Shelley Moore Capito, R-W.Va., have received campaign contributions totaling over $70,000 from political action committees for developers of the Mountain Valley Pipeline since the start of 2018. Manchin and Capito have hailed a provision to force completion of the pipeline in a debt limit deal.

House Republicans, not Joe Manchin, led charge to secure major gas pipeline in debt ceiling deal House Republicans were ultimately responsible for a provision fast-tracking a major natural gas pipeline in the debt ceiling package announced over the weekend, sources told Fox News Digital. After text of the legislation was published Sunday, Sen. Joe Manchin, D-W.Va., was immediately credited with ensuring the provision green-lighting all outstanding federal environmental permits for the Mountain Valley Pipeline project was included. In a statement, Manchin said he was "proud to have fought for this critical project and to have secured the bipartisan support necessary to get it across the finish line." However, sources close to the closed-door talks between the White House and House leaders said it was Republicans who led the charge to secure the provision's inclusion in the deal. The sources told Fox News Digital that Chief Deputy Whip Guy Reschenthaler, R-Pa., and Rep. Garret Graves, R-La., in particular pushed for the provision to be included after Rep. Carol Miller, R-W.Va., appealed to them. After the White House repeatedly communicated that it would oppose involving the pipeline in the deal, Republicans finally asked Manchin to lobby the White House to drop its opposition. "Manchin could have asked to put MVP in any of the Dem-only must-pass bills they passed in the last two years. He didn't because he couldn't get it done," one of the sources said. "Manchin played a key role without a doubt. But his role was simply getting the White House to agree to stop blocking it." However, Sam Runyon, a spokesperson for Manchin, pushed back on that characterization of negotiations and noted he had authored legislation to green-light the pipeline last year. "Everyone knows Joe Manchin was the one legislator to bring legislation to complete MVP to the national conversation last summer and secure a bipartisan vote on it," Runyon told Fox News Digital. "He never let up and he is thrilled the bipartisan support is so robust everyone is racing to take credit for this critical energy infrastructure project." Still, in a statement, Rep. Miller said it was Republicans who brought the pipeline provision to the table during debt ceiling negotiations.

Should officials approve pipeline? - (Letter to Editor) Exporting U.S natural gas will raise ratepayer prices exponentially, yet most U.S. natural gas is slated for export. The Mountain Valley Pipeline, for example, will provide no gas outlets in West Virginia and only one in Virginia! It plans, instead, to connect to the Transco pipeline going to Gulf Coast LNG-export terminals. Nevertheless, in a letter urging Biden to approve a four-year extension for the Mountain Valley Pipeline, heavily fossil-fuel-invested WV politicians, Joe Manchin and Shelly Moore Capito state, “It is imperative that FERC works to accelerate the development of domestic energy infrastructure so that Americans may have access to a reliable and affordable supply of natural gas.” Another signer, Congresswoman Carol Miller, has unabashedly cited the coal and gas industries’ “full support” for her campaign. Since the start of the fracking boom, Ohio, Pennsylvania, and West Virginia’s biggest gas-producing counties, have seen declines in jobs and population according to the Ohio Valley Institute. An MIT study further states that Pennsylvania’s unemployment rate increased almost a full percentage point during the natural gas boom while unemployment fell in 46 other states. Moreover, most fracking jobs created in Appalachia no longer exist. Prior to the release of these reports, however, our politicians had continually assured us that fossil fuel projects increase job availability. More incredibly, Bloomberg shows that although average gas well production declines by 60% in the first year, extraordinarily generous government subsidies cover the cost. Thus while more and more gas wells are required to maintain output, this polluting, destructive practice is being supported by taxpayers! A nation tied to exporting fossil fuels is not secure — nor is its environment. Instead, that nation is beholden to foreign governments and corporate bottom-lines. Furthermore, despite subsidies, the MVP still is only about 55% complete. Yet according to the letter, “MVP is nearly 94% constructed but is still subject to ongoing litigation and permit challenges, to the detriment of American consumers, our national security . . . and the environment.” Toxic, rapidly depleted, creating deadly accidents on a massive scale, fossil fuels must be phased out — not enabled! -- Barbara Daniels, Craigsville

Kaine’s effort to remove Mountain Valley Pipeline provision from debt-limit deal fails - U.S. Sen. Tim Kaine, D-Virginia, on Thursday unsuccessfully tried to remove expedited approval of the controversial Mountain Valley Pipeline from the deal to address the nation’s debt ceiling, arguing that the provision amounted to Congress putting its “thumb on the scale” and calling it a “sweetheart deal for one company in one part of the U.S.” Kaine’s amendment to the Fiscal Responsibility Act was one of 11 considered by the Senate; it was voted down 30-69. All amendments failed before the Senate ultimately voted Thursday night to approve the bill 63-36. It now heads to President Joe Biden’s desk, since the House already passed the bill, 314-117, on Wednesday. Treasury Secretary Janet Yellen has said that Monday is when the U.S. government would no longer have the money to pay its obligations if Congress didn’t raise or suspend the nation’s debt limit by then.In a statement after his amendment failed to pass, Kaine said he was “deeply troubled by the unprecedented provision to cherry-pick one project and exempt it from the normal judicial and administrative review process that every other energy project has to go through.”“Especially when this project takes away Virginians’ land, my constituents deserve a fair process,” Kaine said, referring to the Mountain Valley Pipeline’s use of eminent domain to acquire property along the pipeline route. “I left it all out on the field in the fight for my amendment to remove this harmful provision.”The Fiscal Responsibility Act, which suspends the federal debt limit for nearly two years, includes a provision to speed up approval of the remaining permits necessary for the construction and operation of theMountain Valley Pipeline — a $6.6 billion, 42-inch pipeline that would run 303 miles from northwestern West Virginia to southern Virginia — and shield the project from further legal challenges.“Congress should not be putting our thumb on the scale and taking one project in the United States and saying it doesn’t have to comply with any permitting rules and it doesn’t go to judicial review,” Kaine said in a conference call with news media on Thursday before the Senate vote. “By doing so, we are hurting Virginians whose land is going to be taken for this pipeline.”Mountain Valley Pipeline spokesperson Natalie Cox on Thursday declined to comment specifically on Kaine’s amendment but sent a statement to Cardinal News about the debt-ceiling legislation generally, saying the project is “grateful for the full support of the White House, as well as the strong leadership of Democratic and Republican legislators for recognizing the Mountain Valley Pipeline (MVP) as a critical energy infrastructure project.”

Senate clears debt deal with pipeline, permitting mandates - The Senate voted 63-36 late Thursday night to extend the nation’s borrowing authority ahead of a June 5 deadline after disposing of several contentious amendments — including on the Mountain Valley pipeline. The “Fiscal Responsibility Act,” H.R. 3746, will suspend the nation’s debt limit until after the 2024 election. It will cut spending, institute new work requirements for federal food assistance programs and make a suite of changes to the National Environmental Policy Act as part of “permitting reform.” The legislation passed the House late Wednesday night with the support of 165 Democrats and 149 Republicans in a 314-117 vote. It now heads to President Joe Biden for his signature. The vote breakdown in the Senate followed a similar template as the House, though it occurred under some different circumstances. Many Senate Republicans, for instance, blasted cuts to defense programs in the debt limit deal. They came around after an agreement to provide floor time for fiscal 2024 spending bills and a potential national security supplemental. Senate climate hawks, meanwhile, were allowed a vote on an amendment — albeit without success — to strip out a provision to green-light completion of the Mountain Valley pipeline, a controversial natural gas project that would run through Appalachia and which has been the subject of environmental lawsuits for years. The provision was included in the debt ceiling bill in a surprise bid to make good on an outstanding promise to Sen. Joe Manchin (D-W.Va.), specifically that the White House would back the pipeline in exchange for the senator’s support last year for the Inflation Reduction Act. Environmental activists and their progressive allies in Congress railed against its inclusion. The effort to remove it from the bill was championed on Capitol Hill by Sen. Tim Kaine (D-Va.), a self-described “energy moderate” who has accused the Biden administration of putting its “thumb on the scale” in favor of one project still being litigated by the courts. In a floor speech Thursday, Kaine described the Mountain Valley pipeline as “a highly controversial projects that directly impacts families whose land will be taken for the [pipeline] project, and I stand on their behalf.” Kaine also took the White House to task for not calling him and Virginia’s other Democratic senator, Mark Warner, to advise them the provision would be included in the debt ceiling deal. Warner supported the amendment Thursday night, while others who might have otherwise backed Kaine’s effort voted against it in fear of jeopardizing passage of the entire measure. It failed, 30-69. Schumer had warned that any changes to the bill in the Senate would likely not have left enough time for the House to vote on it again ahead of the Monday deadline. Manchin, in his own floor speech Thursday, made an impassioned plea in support of the pipeline project, saying it would put 2,500 people to work and deliver as much as $50 million annually to West Virginia “and some to Virginia.” He said that MVP, as it’s called in shorthand, stands for the “’Most Valuable Pipeline’ we have to offer reliable energy to the people of America.”

Equitrans Midstream Surges 40% On Debt Ceiling Deal – Equitrans Midstream Corp. got some fuel from D.C. politicians, climbing 40% for the week as its Mountain Valley Pipeline project looks set for completion as part of the debt ceiling deal. Does this stock’s big advance have wider ramifications for other pipeline stocks? The Pennsylvania-based mid-cap has been attempting to get permits for the pipeline for several years. The pipeline would transport natural gas from northwestern West Virginia through southern Virginia. It’s faced environmental challenges standing in the way of the permitting process. As part of the debt ceiling deal, the pipeline’s permitting and completion may be expedited. Environmental groups are opposed to the project, but that hasn’t stopped investors from piling into the stock. The pipeline received the initial OK from federal regulators in 2017, with the expectation that the project would be up and running by the following year. However, legal challenges stymied completion. On May 30, Royal Bank of Canada upgraded the stock to sector outperform from sector perform, as you can see using MarketBeat’s Equitrans Midstream analyst ratings. Equitrans is part of the oil and gas pipeline and transportation sub-industry within the energy sector. Unlike the broader sector, Equitrans failed to have a record-breaking year in 2022. The stock declined while its industry peers notched big gains. Equitrans’ price declines were largely due to concerns about the company’s as-yet unsuccessful efforts to complete the Mountain Valley Pipeline. Equitrans operates an extensive pipeline network that spans major production areas in Pennsylvania, West Virginia, and Ohio. As a midstream company, Equitrans connects natural gas producers to end-users and markets, collecting natural gas from wells and transporting it to processing plants or transmission pipelines. Equitrans also operates storage facilities. Natural gas stored during periods of low demand can be delivered to end users during peak consumption periods.

Hope Gas to buy 900 miles of gathering pipelines from Equitrans - — Hope Gas has received approval to acquire nearly 900 miles of gathering pipelines in northern West Virginia from Equitrans Midstream Corp. The transaction was reviewed and approved by the West Virginia Public Service Commission on May 26. Closing is anticipated in 30 days. With this purchase, Hope will acquire gathering assets that are an important piece of West Virginia’s energy infrastructure, O’Brien said. About 4,900 farm tap customers are served from this pipeline and there are about 1,000 interconnections that allow natural gas producers to transport gas supplies from their wells. The pipeline plays an important role in future strategies to bring additional supplies into Hope’s system, the utility said. “Because of the continuing decline of gas production on this system, customers have experienced service issues associated with this pipeline, particularly on cold winter days,” Morgan O’Brien, CEO of Hope Gas, said. “Now that Hope owns the pipeline, we will be working hard with our partners at Equitrans and with local producers to solve the problems that have impacted these customers. It will not be fixed overnight, but the Hope Gas operations team will make this right for our customers as they always do.” Hope Gas was purchased from Dominion in September. Founded in 1898, its new corporate headquarters are in Morgantown where Hope Gas is among the largest local natural gas companies in West Virginia. The company in January purchased Peoples Gas and recently entered into an agreement to purchase Southern Public Service Company. Hope Gas is a subsidiary of Hearthstone Holdings, a holding company that owns regulated natural gas and water distribution utilities in West Virginia, Arizona, Indiana, Maine, Michigan, Montana, North Carolina, Ohio and Texas. Hope Gas provides gas service to more than 112,000 residential, industrial and commercial customers in 35 counties in West Virginia.

Cheniere Energy Inks Long-Term LNG Deal with Korean Power Firm - Cheniere Marketing, a subsidiary of Houston-based energy company Cheniere Energy, has closed a long-term sale and purchase agreement for liquefied natural gas (LNG) with Korea Southern Power (KOSPO), Cheniere Energy said in a press release. Under the agreement, Korean power generation company KOSPO will purchase around 0.4 million metric tons per annum (mtpa) of LNG from Cheniere Marketing on a delivered ex-ship basis from 2027 to 2046, though smaller annual quantities will be delivered starting 2024. The purchase price for LNG to be delivered before 2027 will be market-based, after which the price will be indexed to the Henry Hub benchmark, plus a fee, Cheniere said. The volumes under the agreement “are subject to a positive final investment decision with respect to the first train of the Sabine Pass Liquefaction Expansion Project” of Cheniere Energy Partners LP (Cheniere Partners). Cheniere Partners owns the Sabine Pass LNG terminal located in Cameron Parish, Louisiana. The terminal has natural gas liquefaction facilities consisting of six liquefaction trains, with a total production capacity of approximately 30 mtpa of LNG, according to the company’s website. The Sabine Pass Liquefaction Expansion Project is being developed to include up to three natural gas liquefaction trains with an expected total production capacity of approximately 20 mtpa of LNG.

U.S. Exports Of LNG Dip In May -- LNG exports out of the United States fell in May to 7.66 million tonnes, according to shipping data cited by Reuters. That’s a 0.35 million tonne dropoff from the previous month. The United States shipped less LNG to Europe in May, while increasing LNG exports to Asia and Latin America. Asia’s thirst for U.S.-derived LNG intensified in May as Asia LNG prices for July delivery increased. But Europe’s LNG prices have eased, weakening the continent’s appetite for U.S. LNG. For the month of May, the United States exported 60.5% of all its outgoing LNG to Europe, 14% to Asia, and 11% to Latin America, the shipping data showed. Demand for LNG globally is currently high, as European countries rush to build import terminals and purchase liquefied natural gas to offset the very low, or complete lack of, Russian pipeline gas supply. But despite the surge in LNG demand and the abundance of natural gas in the United States, America’s next LNG export boom could stall as costs have surged, financing has become more complicated with the higher interest rates, and customers are loathed to sign onto 20-year supply contracts. May’s exports highlight the effect that price volatility has on the flow of LNG. The EIA has predicted that U.S. LNG exports will average 12.1 billion cubic feet per day this year, a 14% increase over last year—and another 5% increase next year, to 12.8 billion cubic feet per day. Responsible for the U.S. LNG export rise, the EIA said, was “high global demand as LNG will continue to displace pipeline natural gas from Russia to Europe,” adding that the Freeport LNG export terminal’s return to service and additional LNG export projects to be commissioned by the end of 2024 supports its forecast.

US natgas futures drop 4% on record output, lower demand forecast (Reuters) - U.S. natural gas futures dropped about 4% on Tuesday on record output and forecasts for milder weather and lower demand over the next two weeks than previously expected. On its first day as the front-month, gas futures for July delivery on the New York Mercantile Exchange fell 9.0 cents, or 3.7%, from where the July contract closed in the prior session to settle at $2.327 per million British thermal units (mmBtu). That, however, was still up about 7% from where the June contract expired when it was still the front-month on Friday before the long U.S. Memorial Day weekend. That settle for the June contract was the lowest for the front-month since May 5. Equitrans Midstream Corp's long-delayed $6.6 billion Mountain Valley gas pipe from West Virginia to Virginia could win federal approval as part of Washington's debt limit deal. If Equitrans is able to complete Mountain Valley in late 2023 or early 2024, it would boost the amount of fuel producers could pull out of the ground in the Appalachia basin in Pennsylvania, West Virginia and Ohio, the nation's biggest shale gas producing region. Producers in Appalachia are already producing about all the gas they can ship out of the region since the pipes out of the basin are close to full. Even though gas prices dropped about 16% last week, speculators boosted their net long futures and options positions on the New York Mercantile and Intercontinental Exchanges for a second week in a row to their highest since June 2022, according to the U.S. Commodity Futures Trading Commission's Commitments of Traders report. In the spot market, mild weather in the U.S. East pressured next-day power prices for Tuesday to their lowest since March 2021 in New England and December 2021 at the PJM Western Hub in western Pennsylvania. In the U.S. West, mild weather and ample hydropower pushed next-day gas prices for Tuesday at the Southern California Border to $1.60 per mmBtu, their lowest since July 2020. Data provider Refinitiv said average gas output in the U.S. Lower 48 states rose to 101.7 billion cubic feet per day (bcfd) so far in May, which would top April's monthly record of 101.4 bcfd. The amount of gas flowing from Canada to the U.S., meanwhile, was on track to rise to 7.6 bcfd on Tuesday, up from 7.2 bcfd on Monday, according to Refinitiv. So far this month, Canadian exports have dropped from a six-week high of 8.5 bcfd on May 4 to a 25-month low of 6.4 bcfd on May 17 as wildfires in Alberta caused energy firms to cut oil and gas production. Those exports rose to 8.1 bcfd on May 23 after firefighters made significant progress controlling the blazes. That compares with average Canada-to-U.S. exports of 8.3 bcfd since the start of the year and 9.0 bcfd in 2022. About 8% of the gas consumed in, or exported from, the U.S. comes from Canada. Meteorologists projected the weather in the Lower 48 states would remain near normal through June 14 with a couple of warmer than normal days on June 1-2 and June 13-14. Refinitiv forecast U.S. gas demand, including exports, would rise from 89.4 bcfd this week to 92.9 bcfd next week as the weather turns seasonally warmer. Those forecasts were lower than Refinitiv forecast on Friday.

US natgas drops 5% to 3-week low on record output, big storage build (Reuters) - U.S. natural gas futures dropped about 5% to a three-week low on Thursday on record U.S. output, rising exports from Canada and a slightly bigger-than-expected weekly storage build. Prices fell despite record daily gas exports to Mexico and forecasts for warmer-than-expected weather over the next two weeks that should boost the amount of gas power generators burn to produce electricity for air conditioning. The U.S. Energy Information Administration (EIA) said utilities added 110 billion cubic feet (bcf) of gas into storage during the week ended May 26. That was slightly bigger than the 106-bcf increase analysts forecast in a Reuters poll and compared with a rise of 82 bcf in the same week last year and a five-year (2018-2022) average increase of 101 bcf. Analysts said the storage increase was bigger than usual because mild weather last week limited demand for the fuel for both heating and cooling. Last week's rise boosted stockpiles to 2.446 trillion cubic feet (tcf), or 16.6% above the five-year average of 2.097 tcf for the time of year. Front-month gas futures for July delivery on the New York Mercantile Exchange fell 10.8 cents, or 4.8%, to settle at $2.158 per million British thermal units (mmBtu), their lowest close since May 5. The premium of futures for August over July NGN23-Q23 rose to 11.3 cents per mmBtu, putting it on track to hit an all-time high for a second day in a row after settling at a record 9.2 cents per mmBtu on Wednesday. Data provider Refinitiv said average gas output in the U.S. Lower 48 states rose to a record 102.5 billion cubic feet per day (bcfd) in May, topping the prior monthly all-time high of 102.2 bcfd in April. The amount of gas flowing from Canada to the United States was on track to jump to a near four-month high of 9.7 bcfd on Thursday from 8.3 bcfd on Wednesday, according to Refinitiv. That is up from an average of 7.0 bcfd from the May 6-22 period when wildfires in Alberta caused energy firms to cut oil and gas production. Gas exports from the United States to Mexico were on track to hit a preliminary 7.7 bcfd on Thursday, which would top the current daily all-time high of 7.3 bcfd set in June 2021. That compares with average U.S.-to-Mexico exports of 5.2 bcfd since the start of the year and 5.7 bcfd in 2022. Meteorologists projected the weather in the Lower 48 states would remain mostly near normal from June 1-11 before turning warmer than normal from June 12-16. Refinitiv forecast U.S. gas demand, including exports, would rise to 93.3 bcfd next week from 91.0 bcfd this week as the weather turns seasonally warmer. Those forecasts were higher than Refinitiv's forecast on Wednesday. Gas flows to the seven big U.S. LNG export plants fell from a record 14.0 bcfd in April to an average of 13.0 bcfd in May due to maintenance at several facilities, including Cheniere Energy Inc's Sabine Pass in Louisiana.

BP subsidiary agrees to record $40M penalty and pollution-cutting steps at Lake Michigan refinery — A BP subsidiary will pay a $40 million penalty and install technology to control releases of benzene and other contaminants at its Whiting oil refinery on the Indiana shoreline of Lake Michigan, Biden administration officials said Wednesday.The actions will settle a civil case against BP Products North America Inc. filed by the U.S. Department of Justice and the Environmental Protection Agency, which described the penalty as the largest ever under the Clean Air Act for pollution from a structure. Additionally, the company will invest around $197 million in improvements.“This settlement will result in the reduction of hundreds of tons of harmful air pollution a year, which means cleaner, healthier air for local communities,” said Larry Starfield, acting assistant administrator of EPA’s Office of Enforcement and Compliance Assurance.The 134-year-old refinery, located between Hammond, Indiana, and Chicago, is the biggest in the U.S. Midwest and sixth largest nationally. It processes about 440,000 barrels of crude oil daily, making a variety of liquid fuels and asphalt.It has a record of pollution rule violations, reaching settlements in 2019 and 2022 over releases of sooty “particulate matter” linked to asthma and other respiratory diseases.A new federal complaint accused the BP unit of breaking rules limiting benzene in refinery wastewater streams and emissions of hazardous and volatile air contaminants.Under the agreement, the company will add benzene stripping equipment and take other steps intended to reduce annually reductions of cancer-causing benzene along with hundreds of tons of other pollutants.

Indiana BP refinery to pay record $40M penalty for pollution charges --An Indiana manufacturing facility has set a new record, but not in a good way. The subsidiary of BP is paying an unprecedented penalty — $40 million — to settle charges its Indiana refinery violated federal law by releasing harmful pollutants into the air and wastewater. The settlement, between BP Products North America Inc., the U.S. Environmental Protection Agency and the Department of Justice, was announced in May. The refinery located near Lake Michigan is one of the oldest and largest in the U.S., with the capacity to process more than 400,000 barrels of crude oil every day. The settlement stems from an October 2019 site visit where inspectors observed multiple violations, according to the Indiana Department of Environmental Management.The federal government's complaint alleged the refinery violated federal regulations limiting benzene in wastewater streams and hazardous air pollutants. Benzene is a known cancer-causing chemical and air emissions are linked to health problems including difficulty breathing, aggravated asthma and reduced lung capacity. The settlement obligates BP to pay a penalty of $40 million — the largest civil penalty ever secured for a Clean Air Act settlement for a fixed location. Larger penalties assessed for vehicle manufacturers for combined emissions violations. Roughly $9 million will go to the state, with the remainder going to the U.S. Treasury. The settlement also requires BP to invest approximately $197 million in new technology and other improvements to reduce pollution from the site. These improvements are expected to reduce annual releases of benzene by about seven tons, other hazardous air pollutants by roughly 28 tons and volatile organic compounds by as much as 372 tons. The company also agreed to complete a $5 million supplemental project to reduce diesel emissions in the surrounding communities.Both the EPA and environmental advocates say they hope this settlement will set a precedent. The agency said it "expects compliance and when violations are repeated, violators should expect that the EPA will assess large penalties." The BP site has a history of violations and pollution issues. Last year, BP had to pay nearly $3 million for repeated air pollution violations. The Environmental Integrity Protect — a nonprofit dedicated to enforcing environmental laws and strengthening policy to protect public health and the environment — released a report year showing the Whiting Refinery is one of the worst water polluters in the nation.

Major Midwest pipeline faces threat of court-ordered shutdown - A federal court is considering whether to shut down the contested Line 5 pipeline out of concerns that riverbank erosion in Wisconsin could cause a rupture and catastrophic oil spill into Lake Superior and on tribal lands. Line 5’s opponents say it is not a question of if but when the aging Enbridge Inc. pipeline will be forced to stop operating on its full 645-mile path. Spring flood waters have quickly stripped away feet of riverbank along a bend of the Bad River in Wisconsin near the pipeline’s path, they say. The erosion is not likely to stop there, said the Bad River Band of the Lake Superior Tribe of Chippewa Indians, which is seeking an emergency court order requiring Canada-based Enbridge to purge Line 5 of oil and halt its operation. The pipeline — which moves light crude oil, light synthetic crude and natural gas liquids — runs from Superior, Wis., to Sarnia, Ontario, and crosses approximately 12 miles of the reservation. The segment of the pipeline under question is buried about four feet below the surface, and the amount of riverbank shielding it from exposure is rapidly eroding. The evidence “strongly suggests that further bank loss could be substantial and result in exposure and rupture of the pipeline,” the band said in its motion to the U.S. District Court for the Western District of Wisconsin earlier this month. Judge William Conley, who is likely to issue a ruling on the motion for a permanent injunction in the coming days, signaled in a recent hearing on the motion that he wouldn’t order an immediate shutdown but instead is likely to define riverbank conditions that would force the court to intervene in coming months. He will also be balancing the potential risk of an oil spill into the Bad River watershed and Lake Superior against the economic effects of shutting down the pipeline. If the pipeline were to shut down in the coming months, Enbridge and industry groups say it would seriously crimp oil and propane supplies, but Line 5 opponents say there are several alternative options to carry fuel and a shutdown would have limited economic repercussions. Last year, Conley handed the band a victory when he ruled Enbridge was trespassing on the reservation, and the company is now considering an alternate route for the pipeline to circumvent it. But a new pipeline segment around the reservation would not be built quickly enough to avoid a spill if erosion continues unchecked, according to Line 5 opponents.

Haaland order extends Chaco Canyon drilling protections for next 20 years - Albuquerque Journal — After an extended review, U.S. Interior Secretary Deb Haaland issued an order Friday withdrawing federal lands within a 10-mile radius of Chaco Canyon from new oil and natural gas leasing for the next 20 years. Haaland, a former New Mexico congresswoman who is the nation’s first-ever Native American Cabinet secretary, said tribal communities have raised concern for decades about the impacts of new oil and gas drilling in the northwest New Mexico national historical site. “Today marks an important step in fulfilling President Biden’s commitments to Indian Country, by protecting Chaco Canyon, a sacred place that holds deep meaning for the indigenous peoples whose ancestors have called this place home since time immemorial,” Haaland said in a statement. The order applies only to federal lands within the 10-mile buffer surrounding Chaco Canyon, meaning it does not apply to subsurface mineral rights owned private, state or tribal entities. It also does not affect existing leases, including Navajo Nation allottees who get monthly royalty checks from oil and gas production.

Stop Fracking Around leader sentenced for disobeying probation ban on blocking roadways - A Provincial Court judge in Vancouver banned a telecommunications installer on Thursday from organizing or participating in protest roadblocks for the next two years. Brent Eichler, 56, pleaded guilty to breaching his probation at an anti-natural gas protest last Aug. 15 on Vancouver’s Cambie Street Bridge. Eichler had received a conditional discharge and 200 hours of community work service in October 2021 after pleading guilty to mischief for his role in a February 2021 Extinction Rebellion protest that closed the Hornby and Smithe intersection for several hours. His probation stipulated that he must not block or impede any traffic for two years. Eichler, who gained media attention for hunger-striking with Save Old Growth in 2022, formed the Stop Fracking Around splinter group last summer and organized a protest march from Vancouver city hall to the CBC studios via the Cambie Bridge. Crown prosecutor Ellen Leno said that Eichler was under the “simple condition to not block or impede the traffic,” but he marched on the bridge and was arrested on a warrant in September. “His moral culpability is at the highest end, it was planned and deliberate and he was an organizer. He was breaching a court order, and he has a history of breaching court orders, as evidenced by the criminal contempt conviction,” said Leno, referring to the 25-hour community work service sentence for breaching the Trans Mountain Pipeline protest injunction in 2018. Eichler’s defence lawyer Ben Isitt told Judge James Sutherland that Eichler followed the march on the Cambie Bridge in a vehicle so that he could assist elderly or physically infirm protesters. The group paused mid-span for about 20 minutes for speeches. Eichler got out of the vehicle with the intent to de-escalate a confrontation between a protester and a reporter. “That's where the breach occurred and he regrets having done it,” Isitt said. “He was strongly inclined to try this allegation, but, ultimately, when he learned of the Crown's position on sentence, he was able to enter a guilty plea.”

Buffett Boosts Occidental Petroleum Stake To 24.9% - Warren Buffett’s Berkshire Hathaway has bought more shares in Occidental Petroleum, boosting its stake in the company to some 24.9%, MarketWatch has reported, citing a regulatory filing. According to the filing, Berkshire Hathaway paid a total $275 million for the new package of Oxy shares. Following these purchases, the investment company’s stake in Oxy is worth some $13 billion. Warren Buffett has been raising his holding in Occidental for about a year now. This sparked speculation that he might be considering a takeover but Buffett dismissed the speculation saying he had no intention of buying out the oil major. “There’s speculation about us buying control, we’re not going to buy control,” Buffett said during Berkshire Hathaway’s annual meeting. “We wouldn’t know what to do with it.”At the same time, Buffett said at the meeting that “We don’t know where the price of oil will be, but we like Occidental’s position in the Permian.”“We will not be making any offer for control of Occidental, but we love the shares we have,” Buffett said. “We may or may not own more in the future but we certainly have warrants on what we got as part of the original deal on a very substantial amount of stock around $59 a share, and warrants last a long time, and I’m glad we have them.” To date, Berkshire is Oxy’s largest shareholder. Besides the purchase warrants, the company owns $10 billion worth of Oxy preferred stock, which carries an 8% dividend. Oxy bought Anadarko for $55 billion in 2019, making it one of the biggest M&A deals in energy over the past few years. In that, it outbid Chevron, which had earlier announced a bid for the energy company. Berkshire lent Oxy $10 billion for the takeover, which later translated into the preferred stock the investment company now holds in the oil driller.

Argentina's Vaca Muerta Shale Play Could Produce 1 Million Bpd In 2030 -- Crude oil production from Argentina’s burgeoning shale patch, Vaca Muerta, could surge in the coming years and top 1 million barrels per day (bpd) by the end of the decade – but only if takeaway capacity and rig availability do not limit growth. Rystad Energy’s modeling shows that if production is relatively unimpeded, oil output could realistically grow from 291,000 bpd in February 2023 to more than 1 million bpd in the second half of 2030. The forecast growth could lift Vaca Muerta’s profile and position it as a leading source of shale production, alongside the likes of the Bakken or Eagle Ford developments, two of the US’ world-class shale basins. It would also help the Neuquen region become a net oil exporter, potentially contributing $20 billion in total revenue by 2030. Crude exports could be making their way to South American neighbors Brazil, Chile and Peru, as well as the US and Europe. Still, big question marks remain, which could potentially alter our long-term growth outlook. Takeaway capacity constraints linger, and rig availability remains an ongoing concern. The learning curve for operators in the basin has been steep, and they will need to continue this trend to maximize their production potential. If all industry participants work together to address these constraints before they become critical, output could top 1 million bpd sooner rather than later. “Vaca Muerta could hold the key to Argentina’s future energy economy following more than a decade of oil production declines. While major challenges lie ahead, reaching the important 1 million barrels per day threshold would change the country’s narrative, reduce its reliance on imports and become a key regional and global oil market player,” says Alexandre Ramos Peon, head of shale research at Rystad Energy. Related: Goldman And Others Sees

Fracking Ban Could Cause Gas Shortage In Colombia | OilPrice.com --Colombia’s first-ever leftist president emerged victorious from the July 2022 election run-off after running a broad reform-based campaign with a focus on transitioning the Andean country away from a reliance on fossil fuels. This includes plans to ban hydraulic fracturing and end awarding new contracts for oil and natural gas exploration. That sparked considerable concern because Colombia is highly reliant upon petroleum which is the largest export by value while natural gas is a key source of energy domestically. Colombia was already battling a natural gas shortage with aging mature fields, low proven reserves, and a lack of hydrocarbon exploration success all weighing on supply at a time when demand for the fossil fuel is expanding at a solid clip. Those developments coupled with Petro’s plans to ban fracking and end hydrocarbon exploration have sparked fears that Colombia’s energy security is at risk.Natural gas is a key source of energy in Colombia’s energy mix. According to the U.S. EIA, the fuel was responsible for 28% of all energy consumed in the Andean country in 2021, and that portion is expanding. That makes natural gas the second largest source of energy consumed in the Andean country behind crude oil, at 31%, and ahead of hydroelectricity which is responsible for 22%. Consumption of natural gas in Colombia has been rising at a steady clip over the last decade. By 2017, the Andean country was consuming more natural gas than it was producing with growing demand for gas-fired electricity the key driver of soaring demand domestically. As a result, later that year Colombia started receiving the first bulk LPG imports at a specialized LPG import terminal in the Caribbean port city of Cartagena.

Natural Gas Prices Could Fall Below Zero In Parts Of Europe -- As tepid demand for gas from power generation and industry has sent European natural gas prices into a freefall in recent weeks, traders and industry officials are not ruling out the possibility that Europe may see a brief dip to below zero for day-ahead prices in some markets this summer. The combination of ample inventories at the end of a mild winter, steady imports of LNG, and weak demand has led to eight consecutive weeks of weekly losses in European benchmark natural gas prices, the longest weekly losing streak in more than six years. While the benchmark price is unlikely to drop below zero, some regional day-ahead natural gas prices in Europe could see sub-zero prices briefly this summer, if demand remains weak and renewable power generation holds high, traders and industry officials at the E-World energy fair in Essen, Germany, told Bloomberg. “Individual regional gas markets in Europe could go negative when you have hours and days with renewable production,” Peder Bjorland, vice president for gas trading and optimization at Norway’s energy giant Equinor, told Bloomberg. “There is quite a big distance from the price level we see now and to the single-digit and negative prices, and a lot can happen on that route,” Bjorland added. The front-month futures at the TTF hub, the benchmark for Europe’s gas trading, crashed by 10% on Thursday to settle at $26.78 (24.94 euros) per megawatt-hour (MWh), the lowest price since the start of the energy crisis in the autumn of 2021. The price trend in European natural gas prices is in stark contrast with last year, when benchmark prices soared to as much as $322 (300 euros) per MWh in August, after Russia slashed supply via pipelines and governments and industry were spooked by potential gas shortages in the winter. Thanks to milder winter weather, reduced consumption on EU level, and demand destruction in industry from the high energy costs, Europe made it through the 2022/2023 winter without gas shortages or gas rationing. Currently, gas inventories are comfortably high for this time of the year. As of May 24, natural gas storage sites in the EU were 66.71% full, according to data from Gas Infrastructure Europe. The level of gas in storage is the highest for this time of the year in at least a decade.

Exxon And Chevron Close To Signing Gas Exploration Deals In Algeria - ExxonMobil and Chevron could gain access to Algeria’s vast natural gas resources as the U.S. supermajors are in advanced talks for exploration and production deals in the North African country, The Wall Street Journal reported on Friday, quoting sources with knowledge of the talks and Algerian Energy Minister Mohamed Arkab.Algeria holds huge conventional natural gas reserves, and it is also estimated to have the third–largest shale gas reserves in the world after China and Argentina.ExxonMobil and Chevron could complete the talks on the deals with Algerian state-held oil and gas firm Sonatrach by the end of this year, the sources told the Journal. “I am pushing Sonatrach,” Arkab told the WSJ, “because we need to increase our volumes.”Sonatrach is discussing the terms of agreements with Exxon and Chevron which would include both conventional and shale gas reserves exploration. Earlier this year, the Journal reported that Chevron had increased efforts to reach an energy exploration agreement with Algeria and was assessing the North African country’s estimated huge shale gas resources.Most of Algeria’s gas exports are heading to Europe, which is increasingly betting on Africa to import large volumes of pipeline gas and LNG to replace pipeline gas supply from Russia, which was Europe’s top gas supplier before the Russian invasion of Ukraine.Italy’s energy major, Eni, has been particularly active in securing more natural gas supply for Europe from Africa and has fast-tracked projects in Africa to meet Europe’s gas demand in the absence of Russian pipeline deliveries.

QatarEnergy, Bangladesh to sign 15-year LNG deal - QatarEnergy will sign a long-term LNG supply deal with Bangladesh’s state-owned gas company Petrobangla on Thursday, Reuters reported. This marks the second Asian sales deal to be sealed for Qatar’s North Field expansion project. The 15-year agreement is for the supply of 2 million tonnes annually, Petrobangla’s Chairman Zanendra Nath Sarker told Reuters. Supplies are set to start in January 2026, he said. The agreement will be one of many to come this year as state-owned QatarEnergy secures sales for its mega expansion of North Field, a source with direct knowledge of the new contract agreement, who did not wish to be identified, said. Qatar is the world’s top LNG exporter and competition for LNG has ramped up since the start of the Ukraine war, with Europe in particular needing vast amounts to help replace Russian pipeline gas that used to make up almost 40% of the continent’s imports. But Asia, with an appetite for long-term sales and purchase agreements, has been ahead so far in securing gas from Qatar’s massive production expansion project. The two-phase expansion plan will raise Qatar’s liquefaction capacity to 126 million tonnes per year by 2027 from 77 million. Qatar’s first Asian deal, with Sinopec, the longest to be signed at 27 years for the supply of 4 million tonnes a year, was followed by the state-owned Chinese company taking a 5% stake in the equivalent of one North Field East LNG train.

Twelve cos confirm interest in developing oil and gas fields - Ukrnafta chief - Twelve local and foreign companies have confirmed their interest in developing oil and gas fields in Ukraine in writing, Ukrnafta CEO Sergei Koretsky said. Ukrainian quoted the company's website as saying that Ukrnafta had selected 20 fields both in the east and west of Ukraine for development with investors. "These 20 fields between them contain reserves of 12 million tonnes of oil with condensate and 30 billion cubic meters of gas. To date, 12 companies that have confirmed their interest in participating in this competitive bidding process in writing. These are companies from Ukraine, Slovakia, France, Britain, the United States, Canada and Mexico," Koretsky was quoted as saying. He said the key principle for attracting investors is simple: Ukrnafta's profit from these operations must be higher with the involvement of a partner than without it. In addition, he said the company planned to develop the oil production services market in Ukraine, for which it is ready to offer long-term five-year contracts with guaranteed work load. "We expect to attract domestic and foreign contractors in such areas as the drilling of horizontal wells and sidetracks, hydraulic fracturing, coiled tubing, the latest advanced recovery and artificial lift methods, production optimization systems, geological exploration and more," Koretsky said. He said the success of increasing production would depend directly on the parallel development of oil production services in Ukraine. The company also said that in 2023 Ukrnafta planned to start drilling nine wells both on a standalone basis and with external contractors. These will be horizontal and inclined wells and sidetracks. Ukrnafta 's plans to increase oil production 5.8% to 1.45 million tonnes and gas 0.3% to 1.04 billion cubic meters in 2023. The growth in oil output will be achieved by investing UAH 5.5 billion in drilling, workovers and special permits at new fields.

Russian Oilfield Service Sees Record Revenue in 2022 - Russian oilfield service companies earned record revenues in 2022 after major foreign players exited the market due to Moscow’s invasion of Ukraine, Vedomosti newspaper reported Friday. According to data from Kasaktin Consulting cited by Vedomosti, Russian oilfield services earned 1.79 trillion rubles ($22.2 billion) in 2022, the highest figure since at least 2018. The international presence in the Russian oilfield services sector has shrunk from 15% to 9%, primarily due to exits by U.S. companies Baker Hughes and Halliburton, according to Vedomosti. Among the areas that saw the biggest growth for Russian companies was well maintenance and repair, which increased 24% in value to be worth 293 billion rubles ($3.6 billion), Vedomosti reported. Drilling saw nearly 16% growth to 609 billion rubles ($7.5 billion), followed by nearly 14% growth each for hydraulic fracturing (90 billion rubles) and exploration (249 billion rubles). Russia’s Energy Ministry says oil production increased 2% to 535 million tons in 2022. Kasaktin Consulting is the Russian-owned successor to accounting firm Deloitte after the British company exited the country in the wake of the invasion of Ukraine. Analysts expect Russia’s oilfield service market to contract by 6% to be worth 1.68 trillion rubles ($20.8 billion) in 2023 due to oil production cut in response to Western price caps and oil embargoes, Vedomosti reported, Moscow Times reports.

Russia’s share in India’s crude oil imports soars to 19% in FY23 - Russia’s share in India’s crude oil imports soared to 19.1% from 2.0% a year ago, the Reserve Bank of India (RBI) says in its latest annual report. "In 2022-23, there was a change in the sources of India’s crude imports. Russia’s share in India’s crude imports soared to 19.1 per cent from 2.0 per cent a year ago," the RBI said. The country-wise import data shows Russia gaining the biggest share of the crude pie in FY23, while crude oil imports from Saudi Arabia and the U.S. showed a slight decline. The crude oil imports from Iraq and the U.A.E. remained almost the same as the previous fiscal year. Moreover, India's combined crude oil imports from other nations declined in FY23 as compared to FY22. In value terms, crude oil imports were the highest in December 2022 at slightly less than $20 billion. In volume terms, crude oil imports were the highest at over 30 million tonnes in December, followed by March 2022 at over 25 million tonnes. The Centre for Research on Energy and Clean Air (CREA), an advocacy and research group that claims to have started in Helsinki in December 2019, accuses five countries led by India and China of 'laundering' sanctions against Russia by importing crude from Russia and selling refined products in 'price cap coalition' countries, mostly in Europe. Terming the five oil-exporting countries -- China, India, Turkey, United Arab Emirates, and Singapore as "laundromat countries", the report says India exported the highest volume of oil products to price cap coalition countries, one year since Russia’s invasion.

Gujarat: ONGC asked to pay damages for crude oil leak in Bharuch district -- ​​An agricultural field near Kachhipura village was found covered in crude oil leaked from a pipeline belonging to ONGC on Sunday, said Bharuch-based GPCB regional officer Margi Patel.The Gujarat Pollution Control Board (GPCB) has ordered the Oil and Natural Gas Corporation (ONGC) to pay Rs 50 lakh in damages for the spillage of crude oil from its pipeline in Bharuch district, an official said on Friday. It has been alleged that 25 camels died after drinking water contaminated with the spillage on Sunday, though the central government-controlled oil major has denied it. An agricultural field near Kachhipura village was found covered in crude oil leaked from a pipeline belonging to ONGC on Sunday, said Bharuch-based GPCB regional officer Margi Patel. The board ordered inquiry after the death of camels was reported. "We have directed ONGC to pay Rs 50 lakh as environmental damage compensation (to the state authorities)," Patel said. The actual cause of the death of the camels will be clear only after the autopsy report is available, the official said. The GPCB has also directed the ONGC to clean up the site, she added. ONGC said in a statement that cleaning-up operation was being carried out on a war footing and the site will be restored by May 30. It also claimed that "the unfortunate death of camels in the area and oil leakage are two unrelated incidents." "However, as a responsible corporate, ONGC continues to provide all assistance to GPCB, state administrative agencies, and forensic team investigating the incident," it said.

Extraction of remaining oil spill will take up to 30 days — The extraction of the remaining oil spill in Oriental Mindoro and nearby areas will take up to a month, government officials said on Saturday, May 27. “The operations will last for 20 to 30 days, if weather conditions are favorable, meaning the remaining oil from the sunken vessel will be retrieved,” Office of the Civil Defense administrator Ariel Nepomuceno said in a statement issued by the Presidential Communications Office on Saturday. Philippine Coast Guard (PCG) Commandant Admiral Artemio Abu, whose agency also addresses the spill, shared the same position. Extraction of remaining oil spill will take up to 30 days – PH gov’t On Saturday, Malacañang also announced that the Dynamic Support Vessel (DSV), the ship that will extract the remaining oil, had arrived in the country. The DSV Fire Opal arrived at Riviera Pier in Subic Bay Freeport Zone on Friday, Malacañang added. The ship was chartered by the Malayan Towage & Salvage Corporation, and contracted by the Protection & Indemnity Insurance Club. The vessel will siphon the remaining oil and then transfer the waste to a tanker. The collected oil will be disposed afterwards. On Saturday night, the DSV Fire Opal will leave Subic and will arrive in Batangas on Sunday. It will later proceed to its designated mission area, Malacañang added. Japanese vessel Shin Nichi Maru, a remotely-operated vehicle, was also deployed and helped in clean-up efforts in Oriental Mindoro in March. Meanwhile, Department of National Defense Senior Undersecretary Carlito Galvez Jr. earlier said that 62.95 kilometers or 84.26% of the 74.71 kilometers of affected coastline has already been cleaned up, as of May 10.

Philippines starts siphoning oil from sunken tanker — Work to recover the remaining oil from the MT Princess Empress that sank off Oriental Mindoro began Monday and may last for a month, the Philippine Coast Guard said. MT Princess Empress, which was loaded with 800,000 liters of industrial fuel, sank in rough seas on February 28, affecting over 194,000 people in Southern Luzon and Western Visayas and threatening the area’s rich marine life Diving support vessel Fire Opal is expected to siphon 120,000 to 240,000 liters of oil. Commodore Geronimo Tuvilla, Coast Guard’s incident management team in Oriental Mindoro commander, said it may take between 20 and 30 days to extract the remaining oil from the vessel. “Once the oil removal is completed, we hope that the process will pave the way for the rehabilitation of affected areas and finally transition to the normalcy of lives of affected Mindoreños,” Tuvilla said. Fishers from some parts of Oriental Mindoro have yet to resume their fishing activities. Fishers who were ordered to stay ashore participate in the government’s cash-for-work program, which provides temporary income. The oil spill is also posing threats to the Verde Island Passage, an area called the “Amazon of the Oceans” because of its rich marine life. Initial estimates by the Department of Environment and Natural Resources put the environmental damage caused by the oil spill at P7 billion. Pola Mayor Jennifer Cruz expressed frustration over the government’s slow response in addressing the oil spill. Pola is one of the worst-affected municipalities. “Those behind this should be held accountable because we are tired,” Cruz said in a joint hearing conducted by the House ecology and natural resource committees Monday. Fr. Edwin Gariguez, lead convenor of Protect Verde Island Passage (VIP), noted the oil spill is still not being treated as a “national disaster.” “While the government dilly-dallies in exacting accountability and justice, the damage to Verde Island Passage’s ecosystem and resulting impacts on stakeholders continue to worsen. Companies responsible for this must be punished,” Gariguez said. RDC Reield Marine Services owns the oil tanker. Reports identified SL Harbor Bulk Terminal Corporation, a subsidiary of San Miguel Shipping and Lighterage Corporation, as the charterer. Under the Oil Pollution Compensation Act, charterers are exempted from claims for compensation for pollution damage.

Philippines launches final phase to clean up oil spill from sunken tanker — In the final phase of a massive environmental clean-up, the Philippine Coast Guard announced Wednesday that efforts were under way to siphon remaining oil from the cargo hold of a sunken tanker in waters off Oriental Mindoro province. The MT Princess Empress, operated by Philippines-based RDC Reield Marine Services, sank in rough seas on Feb. 28 while carrying about 800,000 liters of industrial fuel oil. All 20 crew members were rescued and the tanker was located weeks later at a depth of 400 meters (1,312 feet) off the coastal town of Naujan. The spill led to the contamination of vast coastal regions in the central Philippines. It forced officials to impose a fishing ban in seven coastal towns, and affected nearly 200,000 people as well as threatened rich marine life in the southern Luzon and western Visayas regions. Coast Guard spokesman Rear Adm. Armand Balilo said the tanker’s insurer hired the Dynamic Support Vessel Fire Opal to remove an estimated 120,000 to 240,000 liters (31,700 to 63,400 gallons) of oil believed to be inside the tanker’s cargo hold. The ship arrived on site late last week, and the removal could take weeks. “But it will depend on the weather as well as how fast they work,” Balilo said in an interview with DZBB radio. Commodore Geronimo Tuvilla, who oversees coast guard operations on the ground, said the siphoning of the remaining oil could take 20 to 30 days. “Once oil removal is completed, we hope that the process will pave the way for the rehabilitation of affected areas and finally transition to the normalcy of lives of affected Mindoreños,” Tuvilla said, referring to residents of Oriental Mindoro province. In Manila, an MT Princess Empress official said the tanker was newly constructed. The company, according to Tee, is working with the Philippine government, international oil spill experts and responders to minimize the impact. Meanwhile, Filipino fishers group Pamalakaya called for the company to be made to pay for the ecological damage.

UN begins salvage operation to stop catastrophic oil spill off Yemen - BBC News -- The United Nations has started an operation to remove 1.1 million barrels of oil from a decaying supertanker moored off Yemen's Red Sea coast. A salvage vessel with a crew of experts reached the FSO Safer on Tuesday. They will undertake work to make it secure for oil to be transferred to another tanker, Nautica, which is due to sail from Djibouti next month. There is an imminent risk that the Safer could explode or break apart, causing an environmental catastrophe. The UN has so far raised $114m (£92m) to pay for the unprecedented project through donations from dozens of member states, private companies and even the general public through a crowdfunding campaign. But it says another $29m is urgently required, including to safely moor the Nautica to an anchored loading buoy and tow the Safer to a recycling yard. UN Development Programme Administrator Achim Steiner described the arrival at the site of the salvage support vessel Ndeavor, operated by Dutch company SMIT, as a "critical step" and a "proud moment". He added that it was a "a prime example of the importance of prevention". "Aside from a possible humanitarian and environmental catastrophe, funds spent now will prevent a disaster that could cost billions in the future." The Safer was constructed as a supertanker in 1976 and converted later into a floating storage and offloading facility for oil. It is anchored near the Ras Isa oil terminal, which is controlled by Yemen's rebel Houthi movement. Its structural integrity has deteriorated significantly since maintenance operations were suspended in 2015, when the Houthis seized large parts of Yemen and a Saudi-led coalition intervened in support of the Yemeni government. The ensuing war has reportedly killed more than 150,000 people and left 21 million others in need of aid. The Safer holds four times the amount of oil spilled in the 1989 Exxon Valdez disaster, in Prince William Sound, Alaska.

Here’s Why Oil Flows Can Only Be Redirected, Not Stopped --Asian oil imports were due for a marked rebound this month after the end of the maintenance season. Chances are that a lot of the additional oil would be coming from Russia, which has become one of the largest suppliers of China and India.In fact, Russian oil flows are growing despite claims from Moscow that it has reduced its total oil production. According to Bloomberg, Russian oil exports actually hit the highest since the start of 2022 last month.This is happening in the context of the most severe sanction push by the collective West against the country. And it is the clearest evidence yet of just how essential oil is for the functioning of the global economy.Before the invasion of Ukraine, Russia’s biggest oil clients were European countries. For China and India, it was a minor supplier. Since last year this has changed dramatically.Now, China and India are the two biggest buyers of Russian crude. The two together took in as much as 80% of Russia’s total oil exports last month, according to the International Energy Agency. And the total, at 8.3 million barrels daily, was markedly higher than the annual average for both last year and the year before that.What’s more, Europe, which placed an embargo on direct Russian oil and fuel imports, has been taking in more fuels made in Asia—notably India. In fact, it seems to be taking in a lot of these fuels if the EU’s top diplomat Josep Borrell had to call publicly for an end to this practice.Indeed, India’s fuel exports to Europe over the past 12 months have jumped by over 70%, Reuters reported earlier this month. The report also noted that there is precious little the EU could do to change this without plunging the European economy into a deep recession brought on by fuel price inflation.So, while until a year ago, Russian crude and fuels were going mostly to Europe directly, now almost all crude oil that Russia exports ends up in China and India. From there, processed into fuels, it goes to Europe. The routes have shifted. Oil demand has not.

OPEC oil output falls in May after voluntary cuts pledged -Reuters survey - OPEC oil output fell in May after Saudi Arabia and other members of the OPEC+ alliance made voluntary output cuts to support the market, a Reuters survey found on Wednesday, although increases elsewhere in the group limited the decline. The Organization of the Petroleum Exporting Countries has pumped 28.01 million barrels per day (bpd) this month, the survey found, down 460,000 bpd from April. Output is down more than 1.5 million bpd from September. The survey aims to track supply to the market. It is based on shipping data provided by external sources, Refinitiv Eikon flows data, information from companies that track flows such as Petro-Logistics and Kpler, and information provided by sources at oil companies, OPEC and consultants.

Goldman And Others Sees Rising Odds Of Another OPEC+ Output Cut -- If it was Russia's intention to send oil tumbling after its oil minister last week said that OPEC+ has no intentions of cutting production, in the process inviting another round of shorts and bearish CTAs, well... mission accomplished: on Wednesday oil tumbled more than 3% following the latest dismal Chinese PMI data, and followed a 4.4% drop on Tuesday the black gold is now on pace for its worst month since November 2021. But the real driver behind the latest dump is the reversal of last week's speculation that an OPEC+ cut may be coming following a thinly veiled threat by the Saudi energy minister. Still, many were surprised by the speed and ferocity of the latest drop and as Goldman trader John Flood writes overnight, "we were peppered with questions today on weakness in oil/broader commods complex." His retort: "sentiment around both muted Asia refining margins + European industrial recovery are headwinds. The potential US debt deal includes a resumption of US student loan repayments beginning in Sept which could weigh on discretionary spending and shows you how glass half empty the mkt has become." As for this weekend’s OPEC meeting, Flood writes that "it feels like expectations are pretty low. If they cut, it helps the front but builds spare capacity, if they don't, the mkt might wonder if $70 moves from a floor to a ceiling. All of this suggests any froth that might have been added last week has come out." A more in-depth take was published this morning by Goldman's commodities team, in which Jeffrey Currie and Daan Struyven write that they "expect the nine major OPEC+ producers which announced voluntary production cuts in April to keep production unchanged, but utilize some partly offsetting hawkish rhetoric." One possibility, according to Goldman, is to officialize these voluntary cuts, and broaden the cuts to smaller producers. While constraints on production of these smaller producers imply only a modest hit from a broader announcement to actual output, the bank suspects the alliance will want to signal strong cohesion.Meanwhile, Goldman forecasts a hold for major producers because they likely first want to observe the impact of fresh cuts which just started this month (actually, they haven't as Russia has been cutting output only verbally, while its exports remain near record high). As an aside, OPEC has never cut within three months of a previous cut with stocks as low as today.

Oil Prices Rise As US Debt Default Worries Ebb -Oil prices eked out modest gains on Monday after U.S. President Joe Biden and House Speaker Kevin McCarthy, R-Calif., reached an agreement in principle to raise the debt ceiling and avoid a potentially disastrous default by the U.S. government. Overall gains, however, remained capped by doubts about China's economic recovery and mixed messages from OPEC+ on production cuts. Benchmark Brent crude futures rose 0.3 percent to $77.19 a barrel, while WTI crude futures were up 0.4 percent at $72.94. The last-minute will raise the debt ceiling for two years and keep non-defense spending roughly flat for fiscal 2024 and increase it by 1 percent in fiscal year. McCarthy told reporters Saturday evening that he expects the GOP-controlled House to vote on the agreement on Wednesday. Meanwhile, China growth concerns resurfaced after data showed profits at industrial profits in China fell 20.6 percent in the January-to-April period from the same period the previous year. Traders now look ahead to upcoming OPEC+ meeting for directional cues amid tensions between Russia and Saudi Arabia over output targets. Russia prefers its partners of the OPEC+ group to leave oil production unchanged when it meets next week.

Oil prices drop on OPEC+, US debt ceiling deal uncertainty – Oil prices dropped $0.59 and $0.42 on the barrel of Brent and West Texas Intermediate (WTI) crudes on Tuesday, according to Reuters. Brent crude futures fell to $76.48 on the barrel, after a 0.5 percent rise on Friday, and WTI crude futures dipped to $72.25 on the barrel, the news agency reported. Concerns over the viability of the United States (US) debt ceiling deal and warnings by Saudi officials on the woes of betting against oil weighed heavily on oil prices, both Reuters and Bloomberg explained. Members of the Organisation of the Petroleum Exporting Countries (OPEC) and their allies (OPEC+) are slated to meet on June 3 to discuss output policy. However, last week, Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman warned speculators to “watch out” and that betting against the oil market is ill-advised. OPEC+ surprised the market in April with an unexpected round of production cuts. But since then, according to Bloomberg, traders have been steadily ramping up bearish bets on oil. Speculators also slashed bets against Europe’s diesel benchmark, which had one of the largest concentrations of short positions across the oil market, Bloomberg reported. Meanwhile, in the US, President Joe Biden and House of Representatives Speaker Kevin McCarthy both voiced their confidence that the US debt ceiling deal will be passed by June 4. Nonetheless, the deal must clear a divided Congress soon, before June 5, which is when the Treasury Department said the country will not be able to meet its financial obligations. In the meantime, Republican lawmakers and officials in the US have been speaking out against the debt ceiling deal. Failing to pass this deal will result in downgrading the credit rating of the US and will surely disrupt financial markets in the US and worldwide.

The Physical Market for Crude Signaled that Supplies are More Than Enough to Meet Demand - The oil market sold off on Tuesday as the physical market for crude signaled that supplies are more than enough to meet demand. Bloomberg reported that WTI’s June-July cash roll fell to a discount of 30 cents/barrel, indicating lower demand for barrels being delivered in June than in July. The market also reflected ample supply in the short term as the front month WTI spread deepened into contango. The oil market was also pressured by concerns about whether the U.S. Congress will pass the U.S. debt ceiling agreement reached over the weekend. The crude market traded to a high of $73.55 during Monday’ shortened trading session in observance of Memorial Day. However, the market erased its gains and extended its losses to $3.65 as it retraced more than 50% of its move from a low of $63.90 to a high of $74.73 and posted a low of $69.02 in afternoon trading. The market later bounced off its low and retraced some of its losses ahead of the close. The July WTI contract settled down $3.21 at $69.46 and July Brent contract settled down $3.53 at $73.54. The product markets ended the session sharply lower, with the heating oil market settling down 8.85 cents at $2.2808 and the RB market settling down 10.75 cents at $2.5959. IIR Energy said that U.S. oil refiners are expected to shut in about 222,000 bpd of capacity in the week ending June 2nd, increasing available refining capacity by 335,000 bpd. Offline capacity is expected to fall to 34,000 bpd in the week ending June 9th. Colonial Pipeline Co is allocating space for Cycle 33 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. Russia's Deputy Prime Minister Alexander Novak is set to discuss the situation on the oil market with oil companies on Tuesday. Novak's office said the meeting is taking place against a background of higher gasoline prices. The government has been considering restrictions on gasoline exports to stem the increase in fuel prices. OPEC’s Secretary General, Haitham Al Ghais, told the Iranian oil ministry's website SHANA that OPEC will welcome Iran’s full return to the oil market when sanctions are lifted. OPEC’s Secretary General, who is visiting Tehran for the first time, added that Iran has the capacity to bring on significant production volumes within a short period of time. According to Refinitiv analyst Raj Rajendran, Northwest Europe gasoline exports to the United States so far in May are high, with April loadings bound for the US being revised upwards to 1.26 million tons from 1.06 million tons. Shipments to the US so far in May increased to 790,000 tons, up from 618,000 tons estimated last week and this could increase to the million ton level. Shipments to West Africa in May are at 370,000 tons, sharply less than the revised 797,000 tons in April. Exports to Latin America increased sharply. NWE flows in May on the two major routes were estimated at about 1.2 million tons, down from 2.05 million tons in April. Meanwhile, European diesel arrivals in May are set to reach 5.91 million tons, down from 6.9 million tons in April.

WTI, Brent Plunge 4% on OPEC, US Debt Ceiling Uncertainty - New York oil futures and Brent crude traded on the Intercontinental Exchange settled Tuesday's session with sharp losses triggered by growing skepticism that the Saudi-led coalition of 23 producers, known at OPEC+, can deliver a sustainable cut to collective oil production this year, opening a pathway for higher crude and product exports out of Russia. Further weighing on market sentiment, a group of at least 20 Republican lawmakers said this afternoon they will vote against a debt ceiling deal unveiled late Sunday by President Joe Biden and House Speaker Kevin McCarthy. The deal itself neither raises nor freezes the debt limit for U.S. federal government, but simply suspends it until 2025. However, it ends prospects of a U.S. default and would allow the government to keep borrowing money through the 2024 presidential election year. The Dow Jones Industrial Average erased earlier gains to finish the session lower as Wall Street assessed the odds for the tentative deal to clear the Congress. West Texas Intermediate July futures, the U.S. crude benchmark, settled the session $3.21 lower at $69.46 barrel (bbl), and international crude benchmark Brent for July delivery shed $3.53 bbl for a $73.54 bbl settlement before the contract's expiration Wednesday afternoon. Next-month Brent August futures settled $3.39 bbl lower at $73.71 bbl. NYMEX RBOB June futures plunged 10.75cts gallon to $2.5959, with the next-month delivery contract expanding its discount against the expiring contract to a 11.67cts gallon. NYMEX ULSD June contract declined $0.0885 to $2.2808 gallon and next-month delivery July futures finished the session at $2.2690 gallon. Later this week, traders will turn their focus to the OPEC+ Joint Ministerial Monitoring Committee meeting scheduled for Sunday, June 4, amid growing uncertainty over the group's next move on production policy. Saudi Oil Minister Prince Abdulaziz bin Salman appeared to suggest the group might opt for another output cut, warning short sellers against "ouching" for taking on bearish positions. Striking a different tone, Russian Deputy-Prime Minister Alexander Novak later said that the market requires no additional cuts. Arguably, Moscow has made little progress on pledged production cuts, with oil and product exports continuing to flow at the pre-war level.

Oil Prices Extend Losses On Weak Economic Data From China - Oil prices slumped by another 3% early on Wednesday, extending the 4% losses from Tuesday after manufacturing data from China disappointed and the U.S. dollar strengthened.As of 7:27 a.m. EDT on Wednesday, the U.S. benchmark, WTI Crude, had plunged below $68 per barrel, at $67.48, down by 2.89%. WTI crude oil futures sank below $70 a barrel on Tuesday amid concerns about opposition to the U.S debt ceiling deal.The international benchmark, Brent Crude, was down by 2.64% early on Wednesday at $71.61.WTI and Brent were on track to post a seventh month of monthly declines of more than 9% and 11%, respectively.While the debt limit deal late on Tuesday cleared its first hurdle at the Rules Committee, which considered the terms by which the legislation would be debated and voted on by the full House, fresh macroeconomic data out of China early on Wednesday weighed on market sentiment again. China’s purchasing managers’ index (PMI) droppedin May to a five-month low of 48.8, pointing to a sharper-than-expected contraction in factory activity. Manufacturing activity was below estimates for a second consecutive month, raising again concerns about oil demand in the world’s top crude importer. Market participants are also on edge ahead of a key OPEC+ meeting this weekend, at which the top producers of the alliance, Saudi Arabia and Russia, are heading with contrasting views on output policy.“Lower prices ahead of the OPEC+ weekend meeting may raise the temperature in the room with Russia continuing to pump while key Middle East producers have shown constraint,” Saxo Bank’s analysts said on Wednesday.“The front month spreads of Brent and WTI both trades in contango, a sign of ample supply.” ING strategists said on Wednesday, “Market reports of divergent views from Russia and Saudi Arabia on oil supply requirements weighed on the sentiment yesterday as the probability of the OPEC+ meeting concluding without any production cut increases rose.”

Oil settles lower on weak China data, stronger US dollar - Oil prices settled lower on Wednesday, pressured by a stronger U.S. dollar and weak data from top oil importer China that fed demand fears. Brent crude futures for August delivery settled down $1.11 to $72.60 a barrel. U.S. West Texas Intermediate crude (WTI) settled down $1.37, or 2%, to $68.09. At their session lows, both benchmarks were down more than $2 to multi-week lows. On Tuesday, both fell more than 4%. Oil prices tumbled after Chinese data showed manufacturing activity contracted faster than expected in May, as weakening demand cut the official manufacturing purchasing managers' index (PMI) down to 48.8 from 49.2 in April, lagging a forecast of 49.4. The dollar index, which measures the U.S. unit against six major peers, saw support from cooling European inflation and progress on a bipartisan U.S. debt ceiling bill, which will advance to the House of Representatives for debate. House passage would send the bill to the Senate, where debate could stretch to the weekend, as a June 5 deadline loomed. A stronger dollar makes oil more expensive for buyers holding other currencies. U.S. data showed job openings unexpectedly rose in April, pointing to persistent strength in the labor market that could push the Federal Reserve to raise interest rates in June. "We have weaker-than-expected Chinese data, the debt limit situation, two years of flat spending, and likely another rate hike next month weighing on markets," Traders will watch the upcoming June 4 meeting of OPEC+ - the Organization of the Petroleum Exporting Countries and allies including Russia. Mixed signals by major producers on further production cuts have sparked volatility in oil prices, yet banks HSBC and Goldman Sachs and analysts do not expect OPEC+ to announce further cuts at this meeting. HSBC said stronger oil demand from China and the West from the summer onwards will trigger a supply deficit in the second half. In the U.S., field production of crude oil rose in March to 12.696 million barrels per day, the highest since March 2020, when the coronavirus pandemic began to decimate global energy demand, Energy Information Administration data showed. U.S. crude oil and gasoline stockpiles were seen falling last week, while distillate inventories likely increased, a preliminary Reuters poll showed on Tuesday. .

WTI Extends Losses After API Reports Big Surprise Crude Build - Despite Saudi threats to the shorts, oil prices ended significantly lower to cap an ugly month ahead of OPEC's meeting this weekend after a weak China PMI print overnight and nothing from US data -to spur any excitement. Prices "remained on the defensive after China's manufacturing PMI showed more signs of weakness in May, adding to concerns about the outlook for demand from the world's biggest importer. Lower prices ahead of the OPEC+ weekend meeting may raise the temperature in the room with Russia continuing to pump while key Middle East producers have shown constraint", After last week's surprise (and large) draw in official crude stocks, it appears API is playing catch up with expectations of another large drop. API

• Crude +5.2mm (-5.1mm exp)
• Cushing +1.777mm
• Gasoline +1.89mm (-900k exp)
• Distillates +1.849mm (+500k exp)

API reports a big surprise crude build - exactly opposite of what was expected. All the cohorts saw sizable builds last week... WTI was hovering just above $68 ahead of the API print and extended losses on the build... US demand for oil and diesel was more robust in March than previously thought, but remained below levels seen at the same time a year ago. Finally, we note that a DOE report Monday indicated that the Biden admin sold another 2.6 million barrels of crude last week from the nation's Strategic Petroleum Reserve to the commercial side.

As Oil Plunges, OPEC Bans Mainstream Media Groups From Vienna Meeting -- The Financial Times reports that OPEC has barred several media groups from attending its crucial production meeting in Vienna this weekend, in a move officials said was driven by Saudi Arabia. Reporters from Reuters, Bloomberg News and Dow Jones, the publisher of The Wall Street Journal, have been denied invites to Opec’s Vienna headquarters, according to people familiar with the matter. The ban is unusual and no reason has been given for excluding the media groups, but people familiar with the decision said it had been instigated by Saudi Arabia’s energy minister, Prince Abdulaziz bin Salman. Are they readying a surprise cut announcement and don't want any leaks?

WTI Holds Gains After Biden Admin's 9th Straight Weekly SPR Drain --Oil prices have been choppy overnight, since API reported a big surprise crude build, with WTI hovering around $68. China's factory activity and the OPEC+ meeting over the weekend in Vienna to discuss the group’s production policy are weighing on traders' minds, as US debt ceiling doubts fade.“Today the market will look to US weekly inventory data and in particular the pace of Strategic Petroleum Reserve selling last week,” “Oil prices are stabilizing after better-than-expected Chinese PMIs and a halt in the recent dollar rally,” he added, referring to the purchasing managers’ index, a measure of economic activity. DOE

• Crude +4.49mm (-5.1mm exp)
• Cushing +1.63mm
• Gasoline -207k (-900k exp)
• Distillates +985k (+500k exp)

The official inventory data confirmed API's report that crude stocks rose significantly last week - after the massive draw the prior week. Cushing stocks rose for the 6th straight week. Gasoline stocks fell very modestly...

Oil prices rise after US decision to raise debt limit: 1 June 2023 - Oil prices increased on Thursday after the US passed a bill that is anticipated to lift the US debt ceiling and limit government spending in an effort to reduce the federal deficit, Kazinform cites Anadolu Agency.International benchmark Brent crude traded at $73.34 per barrel at 09.52 a.m. local time (0652 GMT), a 1.02% rise from the closing price of $72.60 a barrel in the previous trading session on Friday.The American benchmark West Texas Intermediate (WTI) traded at the same time at $68.75 per barrel, up 0.97% from the previous session's close of $68.09 per barrel.The US House of Representatives passed a bill on Wednesday to avert a catastrophic default on the nation's debt. The bill, which suspends the $31.4 trillion cap on the federal government's borrowing limit through January 2025, needs to be passed by the Senate. President Joe Biden urged the Senate to pass the bill as quickly as possible so he could sign it into law.The debt limit was hit in January, but the Treasury Department had taken steps to ensure that the US continued to pay its bills.Meanwhile, the American Petroleum Institute announced its expectation of a 5.20 million-barrel increase in US oil inventories.Markets now await official data from the US Energy Information Administration due later in the day.Ahead of the OPEC meeting on June 4, when producers will choose their output plan, investors and dealers are paying close attention and exercising caution.Although Saudi Arabia and Russia, two other members of OPEC+, have given conflicting signals about whether the group will increase production curbs, analysts do not anticipate a change in output strategy during the meeting.

The Oil Market Was Supported by Hopes For a Pause in U.S. Interest Rate Increases - The market retraced little more than 62% of the selloff seen over the past couple of sessions, despite the weekly petroleum stock report showing an unexpected build in crude stocks of over 4 million barrels. The oil market was supported by hopes for a pause in U.S. interest rate increases as U.S. Federal Reserve officials suggested interest rates could be steady this month. The market was also supported by the passage of the debt ceiling bill in the House of Representatives late Wednesday night, increasing the chances of averting a default. The crude market, which posted a low of $67.51 in overnight trading, rebounded from its previous losses following data showing that China’s manufacturing Purchasing Managers’ Index returned to expansionary territory in May. The market paid little attention to the mostly bearish inventory report and rallied to a high of $71.07 by mid-day. The July WTI contract later erased some of its gains ahead of the close and settled up $2.01 at $70.10. The August Brent contract settled up $1.68 at $74.28. Meanwhile, the product markets ended mixed, with the heating oil market settling up 6.38 cents at $2.3147 and the RB market settling down 76 points at $2.4362. Four sources stated that OPEC and its allies are unlikely to deepen supply cuts at their ministerial meeting on Sunday despite a fall in oil prices toward $70/barrel. According to the EIA, U.S. crude oil stocks in the SPR fell by about 2.5 million barrels in the week ending May 26th to 355.4 million barrels, the lowest level since September 1983. Meanwhile, crude oil stocks built by 4.489 million barrels on the week to 459.7 million barrels. The EIA also reported that the four-week average U.S. gasoline product supplies increased in the latest week to the highest level since December 2021. Senate Majority Leader Chuck Schumer said the Senate will stay in session until members approve a bipartisan bill to suspend the government's $31.4 trillion debt ceiling and send it to President Joe Biden's desk. He said the Senate will continue working until the job is done. A White House official said the White House has been reaching out to Democratic U.S. Senators as the chamber prepared to take up a bipartisan bill to raise the country’s debt ceiling and avoid a default. Kpler vessel tracking service shows that 29.36 million barrels of gasoline and unspecified clean products being imported into the USAC market in May, up from 27.67 million barrels in April. Kpler data already shows that 17.67 million barrels are expected so far in June. The Kremlin said that relations with Saudi Arabia in OPEC+ were constructive and based on trust. S&P Global Commodities is reporting that according to one Turkish official the reason that the pipeline flows from Iraq to Turkey remains halted and that Turkey has made no concrete announcement on when it plans to reopen the line, is that it is over a political/economic issue. Turkish officials reportedly are seeking talks with Iraqi government officials over the penalties it was ordered to pay Baghdad in the recent arbitration case, as well as a second arbitration case that is still pending.

Oil prices up with approval of US debt ceiling: 2 June 2023 -- Oil prices increased on Friday as investors priced in the lifting of the US debt ceiling, despite market uncertainty ahead of the much-anticipated OPEC+ meeting, which is widely expected to yield an unchanged production policy, Kazinform cites Anadolu Agency. International benchmark Brent crude traded at $75.08 per barrel at 09.33 a.m. local time (0633 GMT), a 1.07% rise from the closing price of $74.28 a barrel in the previous trading session on Friday. The American benchmark West Texas Intermediate (WTI) traded at the same time at $70.82 per barrel, up 1.02% from the previous session's close of $70.10 per barrel. Both benchmarks are on track to slash their marginal weekly losses after investors throughout the week priced in the US debt ceiling decision to set the maximum amount of outstanding federal debt that the US government can incur. Averting a first-ever catastrophic default on the nation’s debt before a June 5 deadline, the US Senate passed a bill to suspend the debt ceiling late Thursday. This came as the US Institute for Supply Management (ISM) released the ISM Manufacturing Purchasing Managers' Index (PMI), which indicated a contraction in the country’s manufacturing sector in May for the seventh consecutive month, limiting crude oil prices' upward trajectory. Another headwind to limit price upticks was the less-than-expected rise in US commercial crude oil inventories, which rose by around 4.5 million barrels to 459.7 million barrels, against the American Petroleum Institute's forecast of a jump of 5.2 million barrels. Positive demand sentiment in the market was supported by reports that manufacturing activity in China recovered for the first time in three months in May. The Caixin China General Manufacturing Purchasing Managers’ Index (PMI) increased to 50.9 in May from 49.5 in April, owing to a robust and rapid growth in output in May. With a rise above the neutral level of 50, the result marked the first improvement in overall manufacturing sector conditions since February. As markets await Sunday’s meeting of the Organization of Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, experts say the group will most probably keep its production level unchanged. Rystad Energy on Thursday said the 23-member group could decide to maintain the current production policy, citing tight market conditions that are expected to lead to higher oil prices in the second half of the year. The meeting will be the group’s first ministerial meeting after some OPEC+ countries in April decided to cut output by 1.6 million barrels per day (bpd) on top of their existing cuts of 2 million bpd in place since October last year. Without ruling out «further production cuts», Jorge Leon, senior vice president of oil market research at Rystad Energy, predicted that the group may stick to current production levels, taking a «wait and see» approach.

Oil Prices Climb As U.S. Rig Count Sees Another Double-Digit Decline -The total number of total active drilling rigs in the United States fell by 15 this week, according to new data from Baker Hughes published Friday, falling by 52 over the last four weeks—the largest 4-week dropoff in activity since June 2020. The total rig count fell to 696 this week—31 rigs below this time last year. The current count is 379 fewer rigs than the rig count at the beginning of 2019, prior to the pandemic.The number of oil rigs fell by 15 this week to 555. Gas rigs stayed the same at 137. Miscellaneous rigs stayed the same at 4.The rig count in the Permian Basin fell by 2—to land at just 6 above this time last year. The rig count in the Eagle Ford also fell by 2.Primary Vision’s Frac Spread Count, an estimate of the number of crews completing unfinished wells—a more frugal use of finances than drilling new wells, fell by 2 in the week ending May 26, to 260—the lowest number of completion crews in operation since January. The number of fracking crews have fallen for four weeks in a row, losing a total of 34. Year over year, it is 23 fewer than a year ago.Crude oil production levels in the United States fell in the week ending May 26, to 12.2 million bpd, according to the latest weekly EIA estimates, as it ping pongs between 12.2 million and 12.3 million bpd where it’s been all year. U.S. production levels are up just 300,000 bpd versus a year ago.At 12:23 p.m. ET, the WTI benchmark was trading up $1.66 (+2.35%) on the day at $71.75 still down almost $1 per barrel from this time last week.The Brent benchmark was trading up $1.77 (+2.38%) at $76.05 per barrel on the day, down $0.60 per barrel from last Friday.WTI was trading at $71.448 minutes after the data release, up 1.97% on the day.

Oil up Over 2% After US Debt Deal and Jobs Data; Focus Turns to OPEC+ (Reuters) -Oil prices rose over 2% on Friday after the U.S. Congress passed a debt ceiling deal that averted a government default in the world's biggest oil consumer and jobs data fueled hopes for a possible pause in Federal Reserve interest rate hikes. The focus is now turning to a meeting of OPEC and its allies this weekend. Brent futures rose $1.85, or 2.5%, to settle at $76.13 a barrel, while U.S. West Texas Intermediate (WTI) crude rose $1.64, or 2.3%, to settle at $71.74. The closes were the highest since May 26 for WTI and May 29 for Brent. For the week, both contracts were down about 1%, in their first weekly losses in three weeks. Open interest in futures contracts rose on Thursday to the highest since July 2021 for Brent and March 2022 for WTI. The U.S. Senate approved a bipartisan deal to suspend the limit on the government debt ceiling, following approval in the House of Representatives, staving off a default that would have rocked financial markets. U.S. employment increased more than expected in May, but a moderation in wages could allow the U.S. Federal Reserve to skip a rate hike this month for the first time in more than a year, which could support oil demand. Oil traders will watch the June 4 meeting of OPEC+, the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia. The group in April announced a surprise production cut of 1.16 million barrels per day, but resulting price gains have been erased and crude is trading below pre-cut levels. OPEC+ is debating an additional oil production cut among possible options, three OPEC+ sources told Reuters on Friday. "No one wants to be short crude going into a weekend OPEC+ meeting. ... Traders should never underestimate what the Saudis will do and leverage during OPEC+ meetings," Saudi Arabia is the biggest producer in OPEC. In the U.S., energy firms this week slashed the number of oil rigs operating by the most since September 2021, reducing the overall count for a fifth week in a row, energy services firm Baker Hughes Co said in a closely followed report. U.S. drillers have been cutting back on drilling for months due to an 11% drop in U.S. crude prices and a 51% drop in natural gas futures since the start of the year. In a reminder of the upcoming Atlantic hurricane season, Tropical Storm Arlene formed in the Gulf of Mexico near Florida. It is expected to weaken over the next day or so as it heads south toward Cuba, moving away from U.S. Gulf Coast oil and gas infrastructure. On the demand side, manufacturing data out of China, the world's second biggest oil consumer, painted a mixed picture. China is suffering from early heatwaves, expected to persist through June, putting power grids under strain as consumers in mega-cities like Shanghai and Shenzhen crank up air conditioners.

Further OPEC+ Production Cuts Are Still on the Table - Further production cuts are still on the table when OPEC+ ministers meet in Vienna this Sunday, Rystad Energy Senior Vice President Jorge Leon outlined in a statement sent to Rigzone. “Macroeconomic headwinds are putting significant downward pressure on oil markets in recent weeks, despite the voluntary cuts implemented by seven OPEC+ countries starting in May, and the group of producers could cut output to support prices in the short term,” Leon said in the statement. “U.S. shale’s unresponsiveness should be seen as a positive for the group, as OPEC+ could cut production and support prices without the risk of losing market share,” he added. “However, the impact of higher oil prices on the global economy will weigh heavily on the ministers’ minds,” Leon continued. High oil prices would fuel inflation in the West right when central banks are starting to see inflation gradually recede, the Rystad SVP noted, adding that this could prompt central banks to continue increasing interest rates, which he dubbed “a detrimental move for the global economy and oil demand”. “Given all these caveats, the group could decide to maintain production instead,” Leon said in the statement. “The oil market is expected to tighten significantly in the year’s second half, even if OPEC+ maintains production, prices will likely experience significant upward pressure,” he added. “The ministers might therefore take a ‘wait and see’ approach and hold off taking any action,” Leon continued. In the statement, Leon noted that demand forecasts “remain lukewarm at best” and said “maintaining current output could be the most prudent course”. “Rystad Energy’s real-time global traffic monitoring tool shows that activity has remained flat in the last six weeks compared to 2019,” Leon said. “Aviation demand paints a gloomier picture, as mobility rates are flat compared to 2019 and stubbornly below 2019 levels since February,” he added.

US Builds New Base In Northern Syria, Signaling Indefinite Occupation -The US-led anti-ISIS coalition is building a new military base in Syria’s northern province of Raqqa, The New Arab reported, citing a source close to the Kurdish-led Syrian Democratic Forces (SDF).The US backs the SDF and keeps about 900 troops (officially at least) in eastern Syria, allowing the US to control about one-third of Syria’s territory. The report said there are currently about 24 US-led military sites spread throughout eastern Syria.While the US says it’s in Syria to fight ISIS, the presence is part of Washington’s economic war against Damascus, which includes crippling economic sanctions.ISIS also holds no significant territory, and the Syrian government and its allies would continue to fight the remnants of the terror group if the US withdrew.But the construction of a new base demonstrates the US plans to continue the occupation indefinitely. In March, the House voted down a resolution introduced by Rep. Matt Gaetz (R-FL) that would have ordered President Biden to withdraw from Syria. The legislation failed in a vote of 103-321, with 56 Democrats and 47 Republicans voting in favor of the bill.The House also recently voted to maintain sanctions on Syria after an earthquake killed thousands of Syrians. Only two members of Congress voted against the legislation.The US could come under pressure to withdraw from Syria and lift sanctions on the country as more and more regional countries are normalizing ties with the government of Syrian President Bashar al-Assad.

US Increases Sanctions on Syria After Damascus Rejoins Arab League -The US on Tuesday imposed new sanctions on Syria for the first time since the country was brought back into the Arab League as part of a normalization push between Damascus and regional governments.According to the Treasury Department, the US sanctioned two Syrian money service businesses that are accused of helping the government of Syrian President Bashar al-Assad maintain access to the global financial system. The companies are also accused of aiding Hezbollah and Iran’s Islamic Revolutionary Guard Corps.The businesses were targeted using the Caesar Act, a law the US has used to impose sanctions on Syria that are specifically designed to prevent the country’s reconstruction. The House voted overwhelmingly to maintain Caesar Act sanctions on Syria following a devastating earthquake that killed thousands of Syrians in February.Hawks in Congress are infuriated by Syria’s readmission into the Arab League, which was spearheaded by Saudi Arabia despite US opposition. A bipartisan group of lawmakers in the House introduced a piece of legislation that aims to combat Syria’s normalization in the region by expanding sanctions.Because they are designed to prevent Syria’s reconstruction, US sanctions on the country have had a devastating impact on the civilian population. On top of the economic campaign against the country, the US continues to occupy eastern Syria and controls most of its oil resources.

Drones attack Russian oil refineries near major oil port, officials say --Drones attacked two oil refineries just 40-50 miles (65-80 km) east of Russia's biggest oil export terminals on Wednesday, sparking a fire at one and causing no damage to the other, according to Russian officials. At around 0100 GMT a drone struck the Afipsky oil refinery in Russia's Krasnodar region, causing a fire which was later extinguished, Governor Veniamin Kondratyev said. The Afipsky refinery lies 50 miles east of the Black Sea port of Novorossiisk, one of Russia's most important oil export gateways. Novorossiisk, together with the Caspian Pipeline Consortium (CPC) terminal, bring about 1.5% of global oil to market. Another drone crashed into the Ilsky refinery, which lies around 40 miles east of Novorossiisk, Russian state-owned news agency RIA reported, citing local officials. There was no immediate information on who launched the drone but Russia has accused Ukraine of increased attacks on targets inside the country, including on Moscow on Tuesday. Ukraine almost never publicly claims responsibility for attacks inside Russia or on Russian-controlled territory in Ukraine.

Major Drone Attack On Moscow Damages Several Apartment Buildings - A major Tuesday morning drone attack has damaged buildings in the Russian capital of Moscow, which the Kremlin has swiftly blamed on Ukraine. It's being widely described as the first attack to hit the capital's civilian areas. Moscow Mayor Sergey Sobyanin said that multiple buildings sustained minor damage, but there have been no reports of fatalities after eight drones were inbound in the attack. "The Kiev regime launched a terrorist attack with unmanned aerial vehicles on targets in the city of Moscow," the Russian Defense Ministry (MoD) said. The statement went on to describe that five of the drones were shot down by Pantsir-S air defense systems stationed just outside Moscow, but drone-like fragments were found around a damaged building. The MoD also claimed another three had their systems jammed by electronic warfare measures. Apartment buildings in the west and southwest of Moscow reportedly suffered explosions, and windows in several buildings and homes were blown out. As quoted in The Hill, "Moscow Mayor Sergei Sobyanin said in a Telegram post that two people required medical attention as a result of the attacks but they did not need to be hospitalized." "He said that the attacks caused minor damage to the buildings and that the residents of two high-story buildings were evacuated." At least three buildings were identified as damaged from the drones. However, he sought to downplay the whole incident as having caused "insignificant" damage.

Russia Evacuates Children From Border Villages As Ukrainian Shelling Escalates - In what's now becoming an alarming pattern of cross-border escalation, multiple civilians were injured in Russia's Belgorod region, just kilometers from Ukraine, due to large-scale shelling on Wednesday, presumably from Ukrainian forces. Local governor Vyacheslav Gladkov said at least four people had been injured. He described that situation in the border town of Shebekino has been "deteriorating" due to the "massive strike" from Ukrainian forces. One among the casualties was described as being in "serious" condition after being hit by shrapnel. A school as well as some dozen buildings had minor damage from the attack. The governor said the cross-border attack was from Soviet-era Grad multiple rocket launcher systems. "Nobody, thank God, died," Gladkov said. Russia now says it is in the process of evacuating families and hundreds of children from villages in the border region, calling the situation "alarming". "We are starting today to evacuate children from the Shebekino and Graivoron districts," Gladkov said in a notification posted to Telegram. Per the AFP, "The governor said the first 300 children will be taken to Voronezh, a city around 250 kilometers (155 miles) further into Russia." The report details that "He posted photographs of blackened burned cars lying in the grass near a playground, and a rocket that had apparently landed on a road."

Ukraine Calls For Massive Demilitarized Zone Within Russia As Stipulation For Talks - As a condition for ending the war, an aide to President Volodymyr Zelensky has demanded Russia remove its military forces along its border with Ukraine. Kiev hopes the area within Moscow’s borders will be manned by international forces. Presidential adviser Mykhailo Podolyak called for a 100-120 kilometer demilitarized zone within Russia. “It will be necessary to introduce a demilitarization zone of 100-120 km on the territory of Belgorod, Bryansk, Kursk, and Rostov republics. Probably with a mandatory international control contingent at the first stage,” he tweeted on Monday. Kiev is seeking to take control over Moscow’s nuclear and missile programs as well. “Reduction of offensive weapons (missiles with extended range). International conference to organize control over the nuclear arsenal of the [Russian Federation],” Podolyak said in a separate tweet.Podolyak has made other demands of Moscow on the social network during recent days. On Saturday, he stated that the war can only end when the Russian government of Vladimir Putin was removed from power. The adviser added that “there is nothing to talk about with” the current administration in the Kremlin and Putin should be extradited for war crimes. While Kiev makes one-sided proposals for ending the conflict, the Ukrainian army is struggling to regain any of the territory controlled by Moscow. Russian forces control about 20% of Ukraine, recently capturing Bakhmut after a months-long battle. The Kremlin says it has annexed about five Ukrainian oblasts and it will not return those to Kiev’s control.

Russia Says UK Encouraging Ukrainian Attacks on Russian Civilians --The Russian embassy in the UK on Wednesday slammed London over British Foreign Secretary James Cleverly’s comments about Ukrainian attacks inside Russia.In response to a drone attack that hit Moscow on Tuesday and targeted residential buildings, Cleverly said Kyiv has the right to “project force beyond its borders to undermine Russia’s ability to project force into Ukraine itself.” He added that “legitimate military targets beyond its own borders are internationally recognized as being part of a nation’s self-defense.”In response, the Russian embassy said Cleverly was encouraging Ukrainian attacks on civilians. “The hostile statements by Britain’s top `diplomat’ cannot be viewed as anything but an attempt to encourage the Kiev regime to carry out more attacks on civilian facilities and our civilians,” the embassy said, according to Russia’s TASS news agency.“Apparently, from their windows, the Foreign Office — or Estonia — sees residential blocks in Moscow as ‘legitimate military targets,’” the embassy added.Dmitry Medvedev, the deputy chair of Russia’s security council and former president, also responded to Cleverly’s comments, warning British officials are “legitimate military targets” for Moscow because of the UK’s role in the war.“The goofy officials of the UK, our eternal enemy, should remember that within the framework of the universally accepted international law which regulates modern warfare, including the Hague and Geneva Conventions with their additional protocols, their state can also be qualified as being at war,” Medvedev wrote in English on Twitter.“Today, the UK acts as Ukraine’s ally providing it with military aid in the form of equipment and specialists, i.e., de facto is leading an undeclared war against Russia. That being the case, any of its public officials (either military, or civil, who facilitate the war) can be considered as a legitimate military target,” the former president added.

India train crash: More than 230 killed, 900 injured in Odisha — More than 200 people have been killed and hundreds injured in a collision involving two passenger trains and a goods train in the Indian city of Balasore, in one of the worst rail crashes in recent history. At least 233 people have died and 900 are injured, state chief secretary Pradeep Jena said on Twitter following the disaster in eastern Odisha state on Friday. The death toll is expected to rise as teams carry out a colossal rescue operation, Jena told a press conference. Images from the scene showed rescuers attempting to find survivors in a damaged rail carriage. Video footage also showed upturned coaches littered across train tracks, and people climbing a mangled train carriage. Friday’s rescue effort included more than 115 ambulances and several fire service units, say authorities. About 500 units of blood were collected overnight with 900 units currently in stock, Jena wrote on Twitter. The cause of the catastrophic crash has yet to be determined, Jena told CNN affiliate News18, emphasizing that the current focus is on ongoing rescue operations. “We are only working (at) sending additional doctors, ambulances, buses, so all those things we are doing so we have not thought of asking what happened, how it happened,” he said. The deadly collision occurred after one passenger train collided into coaches of an already derailed passenger train that had tossed into the opposite track, Indian authorities said. Both trains then derailed. “Around 7 p.m., 12841 Coromandel Express, which runs between Shalimar and Chennai, around Balasore, 10 to 12 of its coaches derailed and tossed over to the opposite track. After some time, another train, which runs between Yesvantpur and Howrah, dashed into those derailed coaches, which resulted in the derailment of its three to four coaches,” Railway Spokesperson Amitabh Sharma told reporters.

India train crash: More than 260 dead after Odisha accident - BBC News -- At least 261 people have been killed and 650 are injured in a crash involving three trains in India's eastern Odisha state, officials say. One passenger train derailed and its coaches fell on to the adjacent track where they were struck by an incoming train on Friday evening. A freight train was stationary. The rescue operation at the crash site has ended, officials said. The cause of India's worst train crash this century is not yet clear. Officials said several carriages from the Shalimar-Chennai Coromandel Express derailed at about 19:00 (13:30 GMT) in Balasore district, hit a stationary goods train and several of its coaches ended up on the opposite track. Another train - the Howrah Superfast Express travelling from Yesvantpur to Howrah - then hit the overturned carriages. "The force with which the trains collided has resulted in several coaches being crushed and mangled," Atul Karwal, chief of the National Disaster Response Force (NDRF) told news agency ANI. It was the third deadliest crash in the history of Indian railways, he said. More than 200 ambulances and hundreds of doctors, nurses and rescue personnel were sent to the scene, the state's chief secretary Pradeep Jena said. Sudhanshu Sarangi, director general of Odisha Fire Services, had earlier said` 288 had died. The rescue operation recovering people from the wreckage has finished and work to restore the site of the crash begun, India's South Eastern Railway company said on Saturday.