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Medallia to invest $2M in Tysons, create 100 jobs

Global customer and employee company announced Tuesday that it’s investing $2 million to open a new in later this year.

Medallia’s new headquarters, scheduled to open in late 2025, will be located at a 31,360-square-foot space at Tysons Tower — one of the tallest buildings in Tysons at 22 stories and situated across from Tysons Corner Center.

The California-based company says its new East Coast office will be a central hub for Medallia’s senior leadership, providing a key location for expanding artificial intelligence and analytics talent and creating “a dynamic space” for hosting clients. The office includes a rooftop space, arcade games and modern technology.

Medallia plans to add 100 over the next two years.

“Tysons will play a critical role in the next chapter of our growth,” said Medallia CEO Mark Bishof in a statement. “The new location provides space to deepen our relationships with key customers, expands our leadership presence, and gives us access to world-class talent in data science, AI and experience management.”

Medallia has an enterprise experience management platform, Medallia Experience Cloud, that captures billions of signals across voice, video, internet of things, digital, social media and -messaging tools interactions. The company uses proprietary AI and machine learning technology to reveal insights about customers and help businesses develop strategies and improve decision-making.

“We are proud that Medallia is expanding their footprint in the commonwealth,” said in a statement. “Their investment not only brings 100 quality jobs to Virginia but also reflects our reputation as a hub for innovative, tech-driven businesses. By helping organizations improve how they listen to and support their employees and customers, Medallia is setting a strong example of how technology can enhance workplace culture and performance.”

Founded in 2001, Medallia also has a West Coast and global headquarters in Pleasanton, California, along with global offices in Buenos Aires, London, Madrid, Mexico City, Paris, Prague, Tel Aviv, Tokyo and Toronto. It has more than 2,000 employees and 2,600 customers.

Medallia did not immediately return requests for comment.

Broadband installation statute unconstitutional

Summary

  • Supreme Court of Virginia rules unconstitutional
  • Law allowed installation of fiber optics on railroad land without proving
  • Court says private companies can’t use  powers
  • Ruling may slow projects and increase installation costs

A Virginia statute that allowed internet providers to run across railroad property without showing the installation was for public use is unconstitutional, because it permits a taking of private property, the Supreme Court of Virginia has ruled.

Va. Code § 56-16.3 was enacted in 2023. Subsequently, sought to install fiber optic cables across Southern’s railroad tracks.

Norfolk Southern challenged the constitutionality of the statute, arguing that it violated Article I, Section 11 of the state constitution.

The State Corporation Commission disagreed and allowed Cox to proceed with the installation. Norfolk Southern appealed to the state’s high court.

In an opinion authored by Justice Teresa M. Chafin, the Supreme Court of Virginia held that allowing Cox to install fiber optic cable under the train tracks meant the cables “would occupy a defined space for an indefinite period of time [and such] a physical occupation is a taking.”

Further, Chafin continued, “the taking at issue … is not for a public use. Cox is a private, for-profit broadband service provider. It is not a government entity, public service corporation or public service company. Therefore, Cox cannot exercise the power of eminent domain for a ‘public use,’ under either Article I, Section 11 of the Constitution of Virginia or Code § 1-219.1.”

The 11-page decision is Norfolk Southern Railway Company v. State Corporation Commission (VLW 025-6-015).

Slowing down broadband?

Rachel Yates, a Glen Allen-based attorney who specializes in appellate litigation, said that there will likely be arguments that the decision might slow down broadband service project timelines and may increase the costs.

But, she said, “this decision is based on Virginia’s Constitution and Code Section 1-219.1. The court was arguably simply applying the law that Virginia voters bargained for.”

John Byrum and Elaine McCafferty, attorneys for Norfolk Southern, did not respond to a request for comment. Virginia’s Office of the Attorney General, which represented the , declined to comment.

A Cox spokesperson said in a statement that the company “remains committed to connecting all Virginia residents to high-speed internet and will continue to work with the railroads to ensure that we can access customers on all sides of railroad crossings.”

Underground cables

In early 2024, Cox Communications filed three applications to install fiber optic cables across Norfolk Southern tracks in New Kent County. Cox planned to install the cables in underground conduits beneath the railroad tracks.

Initially, Norfolk Southern did not object to the proposed crossings. It forwarded a draft licensing agreement to Cox that requested licensing fees exceeding the maximum allowed under statute.

Cox declined to accept the agreement, asserting that the proposed crossings were governed by Va. Code § 56-16.3. Cox said it would proceed with the project without the licensing agreement.

Norfolk Southern petitioned the SCC for relief.  In addition to asserting that Va. Code § 56-16.3 violated the state constitution, the railroad also argued that the statute eliminated a condemnor’s burden to establish a public use undergirding the proposed taking of property. The railroad further noted that Cox was a private, for-profit company.

The SCC rejected the railroad company’s argument, declining to hold a hearing on the matter. It concluded that the allegations in Norfolk Southern’s petition were insufficient to establish an “undue hardship.”

Norfolk Southern appealed.

Not a ‘public use’

Before the state supreme court, Norfolk Southern contended that Code § 56-16.3 permitted Cox to take its property for a nonpublic use and eliminated Cox’s constitutionally imposed burden to establish the public use underlying the proposed taking.

The court agreed.

“By essentially ignoring the public use requirement set forth in Article I, Section 11 of the Constitution of Virginia and Code § 1-219.1, Code § 56-16.3 permits Cox to take Norfolk Southern’s property for a private purpose,” Chafin wrote.

“Pursuant to the plain terms of Article I, Section 11 of the Constitution of Virginia, ‘[t]he condemnor bears the burden of proving that the use is public, without a presumption that it is.’ Despite this clear constitutional directive, Code § 56-16.3 does not even reference the term ‘public use,’” the court said.

The statute permits a broadband service provider to install fiber optic cables across railroad property after it files an application with the affected railroad company, the court said, and that application is not required to address the public use underlying the proposal. And although a railroad company may petition for relief based on three specific grounds, none of those grounds address the public use.

Therefore, the court held, “[i]n the present case, the application of Code § 56-16.3 effectuates a taking of Norfolk Southern’s property.”

Further, because Cox is a private company, not a government entity or public service company, it “cannot exercise the power of eminent domain for a ‘public use,’ under either Article I, Section 11 of the Constitution of Virginia or Code § 1-219.1.”

The court’s decision noted that the General Assembly enacted Va. § 56-16.3 to promote the of broadband services.

“[W]e acknowledge that the expansion of an existing broadband network may benefit the members of the public who would be served by the expansion,” Chafin wrote. “Nevertheless, a taking for a ‘public benefit’ is not necessarily a taking for a ‘public use.’”

The court reversed the State Corporation Commission’s decision and remanded the case for judgment in favor of Norfolk Southern.

VLW 025-6-015

Virginia Lawyers Weekly

Google offers buyouts to more workers amid AI-driven tech upheaval and antitrust uncertainty

SUMMARY:

  • Google offers voluntary buyouts in search, ads, and research
  • Move comes ahead of ruling on illegal search monopoly case
  • DOJ also pushing for breakup of Google’s digital ad network
  • Company continues post-pandemic layoffs and AI investment

MOUNTAIN VIEW, Calif. (AP) — Google has offered buyouts to another swath of its workforce across several key divisions in a fresh round of cost cutting coming ahead of a court decision that could order a breakup of its internet empire. The Mountain View, California, company confirmed the streamlining that was reported by several news outlets.

It’s not clear how many employees are affected, but the offers were made to staff in Google’s search, advertising, research and engineering units, according to The Wall Street Journal. Google employs most of the nearly 186,000 workers on the worldwide payroll of its parent company, Alphabet Inc.

“Earlier this year, some of our teams introduced a voluntary exit program with severance for U.S.-based Googlers, and several more are now offering the program to support our important work ahead,” a Google spokesperson, Courtenay Mencini, said in a statement.

“A number of teams are also asking remote employees who live near an office to return to a hybrid work schedule in order to bring folks more together in-person,” Mencini said.

Google is offering the buyouts while awaiting for a federal judge to determine its fate after its ubiquitous search engine was declared an illegal monopoly as part of nearly 5-year-old case by the U.S. Justice Department. The company is also awaiting remedy action in another antitrust case involving its digital ad network.

U.S. District Judge Amit Mehta is weighing a government proposal seeking to ban Google paying more than $26 billon annually to Apple and other technology companies to lock in its search engine as the go-to place for online information, require it to share data with rivals and force a sale of its popular Chrome browser. The judge is expected to rule before Labor Day, clearing the way for Google to pursue its plan to appeal last year’s decision that labeled its search engine as a monopoly.

The proposed dismantling coincides with ongoing efforts by the Justice Department to force Google to part with some of the technology powering the company’s digital ad network after a federal judge ruled that its digital ad network has been improperly abusing its market power to stifle competition to the detriment of online publishers.

Like several of its peers in Big Tech, Google has been periodically reducing its headcount since 2023 as the industry began to backtrack from the hiring spree that was triggered during pandemic lockdowns that spurred feverish demand for digital services.

Google began its post-pandemic retrenchment by laying off 12,000 workers in early 2023 and since then as been trimming some divisions to help bolster its profits while ramping up its spending on artificial intelligence — a technology driving an upheaval that is starting to transform its search engine into a more conversational answer engine.

US stocks drift lower as oil prices return to rising

SUMMARY:

NEW YORK (AP) — U.S. stock indexes are drifting lower on Tuesday, while oil prices rise again.

The S&P 500 was down 0.3% in midday trading following signals that one of the ‘s main engines, spending by households, is weakening while Israel’s conflict with Iran may be worsening. The Industrial Average dipped by 39 points, or 0.1%, as of 11:20 a.m. Eastern time, and the Nasdaq composite was 0.3% lower.

Treasury yields also edged lower in the bond market after a report said shoppers spent less last month at U.S. retailers than the month before and than economists expected. Solid such spending has been one of the linchpins keeping the economy out of a recession, but part of May’s drop may have simply been a return to more normal trends.

In April, some shoppers had rushed to buy automobiles to get ahead of President Donald Trump’s .

“Today’s data suggests consumers are downshifting, but they haven’t yet slammed the brakes,” according to Ellen Zentner, chief economic strategist for Morgan Stanley Wealth Management

Trump, meanwhile, left a Group of Seven summit early and warned that people in Iran’s capital should evacuate immediately. It took only about eight hours for Trump to go from suggesting a nuclear deal with Iran remained “achievable” to urging Tehran’s 9.5 million residents to flee for their lives.

Israel’s continuing fight with Iran has the potential to drive up prices for and gasoline because Iran is a major producer of oil, and it sits on the narrow Strait of Hormuz, through which much of the world’s crude passes.

Crude prices climbed in their latest see-saw move after leaping roughly 7% on Friday and then calming on Monday with hopes that the fighting could remain relatively contained. A barrel of benchmark U.S. crude rose 2.8% to $72.19. Brent crude, the international standard, added 3% to $75.40 per barrel.

Often, higher oil prices can help of companies in the solar industry because they increase the incentive to switch to alternative energy sources. But solar stocks tumbled amid the possibility that Congress may phase out tax credits for solar, wind and other energy sources that produce fewer emissions that change the Earth’s climate.

Enphase Energy dropped 25%, and First Solar fell 18,1%.

On the winning side of Wall Street was Jabil, which jumped 11.9% after reporting a stronger profit for the latest quarter than analysts expected. CEO Mike Dastoor credited strength from accelerated demand related to artificial-intelligence technology, among other things.

Verve Therapeutics soared 76.4% after Eli Lilly said it would buy the company developing genetic medicines for cardiovascular disease in a $1 billion deal that could be worth up to $1.3 billion if certain conditions are met. Lilly’s stock slipped 1.2%.

All of the action was taking place as the Federal Reserve got set to begin a two-day meeting on interest rates. The nearly unanimous expectation among traders and economists is that the Fed will make no move.

The Fed has been hesitant to lower interest rates, and it’s been on hold this year after cutting at the end of last year, because it’s waiting to see how much Trump’s tariffs will hurt the economy and raise inflation. Inflation has remained relatively tame recently, and it’s near the Fed’s target of 2%.

More important for financial markets on Wednesday will likely be the latest set of forecasts that Fed officials will publish for where they see the economy and interest rates heading in upcoming years.

In the bond market, the yield on the 10-year Treasury fell to 4.42% from 4.46% late Monday. The two-year yield, which more closely tracks expectations for what the Fed will do with its overnight interest rate, edged down to 3.95% from 3.97%.

In stock markets abroad, indexes fell across much of Europe after finishing mixed in Asia.

Tokyo’s Nikkei 225 index rose 0.6% after the Bank of Japan opted to keep its key interest rate unchanged. It’s been gradually raising its rate from near zero and cutting back on its purchases of Japanese government bonds to help counter inflation.

Smithfield Foods to move 115 jobs to Virginia

Smithfield Foods — the nation’s largest producer — announced Tuesday that it’s bringing about 115 to Virginia’s region over the coming months.

The -based company is relocating the positions from regional offices in the Midwest to the company’s in Smithfield. Positions include finance, procurement, human resources, IT and other support functions.

“ is committed to investing and growing the local communities where we live, work and call home,” said Jim Monroe, vice president of affairs for Smithfield Foods, in a statement. “We’re proud of our roots in Smithfield, Virginia, since 1936, and look forward to bringing these positions to the Tidewater area to help strengthen the local economy.”

A company spokesperson said the relocation of employees is expected to occur by the end of next year.

Founded in 1936 and headquartered in Smithfield, Smithfield Foods provides packaged meats and fresh pork products throughout the U.S. and various countries worldwide. The company says the vast majority of its products are consumed in the U.S. and it employs about 33,000 people nationwide.

In Virginia, the company employs 1,800 people. The company says it generates $3.9 million in annual tax revenue for the state, and provides $2.5 million in cash and in-kind donations.

In January, Smithfield launched its IPO of 26 million stock shares at $20 per share on the Global Select Market, raising $522 million. Its former parent company, Hong Kong-based WH Group, remains its majority shareholder, holding approximately 92.7% of Smithfield Foods’ outstanding shares of common stock as of late March.

In September 2024, Smithfield’s European operations were carved into an independent subsidiary now known as Morliny Foods, part of a streamlining effort before going public.

Smithfield Foods also said it would transfer some of its hog farming operations to a venture controlled by Murphy Family Ventures in North Carolina, Bloomberg reported earlier in December 2024.

According to SEC filings, Smithfield paid Murphy $3 million in cash in exchange for a 25% minority interest in the enterprise, which will supply approximately 3.2 million hogs to Smithfield annually.

In December 2024, Smithfield sold its hog production assets in Utah for $58 million, resulting in a gain of $32 million, and in November 2024, the company sold some of its Missouri hog farms for $32 million at a loss of $4 million.

Americans turn cautious and retail sales slide after a spring spending surge to beat tariffs

SUMMARY:

  • declined 0.9% in May, Commerce Dept. reports
  • Consumers pulled back after March’s pre-tariff spending surge
  • dropped sharply due to Trump’s 25% import duty
  • Excluding autos, overall retail sales fell 0.3%

 

WASHINGTON (AP) — Retail sales fell sharply in May as consumers pulled back from a spending surge early this year to get ahead of President Donald Trump’s sweeping  on nearly all imports.

Sales at retail stores and restaurants dropped 0.9% in May, the  said Tuesday, after a decline of 0.1% in April. The figure was pulled down by a steep drop in auto sales, after Americans ramped up their car-buying in March to get ahead of Trump’s 25% duty on imported cars and car parts. Excluding autos, sales fell 0.3%.

The sales drop is hitting after sharp declines in  this year. Still, inflation has cooled steadily and unemployment remains low, which could fuel steady spending in the coming months, as the economy has remained mostly solid.

A category of sales that excludes volatile sectors such as gas, cars, and restaurants rose last month by 0.4%, a sign that consumers are still spending on some discretionary items.

Overall, the report suggests consumers have pulled back a bit but not dramatically so. The retail sales report covers about one-third of , with the other two-thirds consisting of spending on services. Economists expect overall consumer spending to grow in the April-June quarter.

“Today’s data suggests consumers are downshifting, but they haven’t yet slammed the brakes,” Ellen Zentner, chief economic strategist for Morgan Stanley wealth management, said in an email. “Like the economy as a whole, consumer spending has been resilient in the face of tariff uncertainty.”

Yet many categories saw sharp declines. Car sales plunged 3.5%, while sales at home and garden centers dropped 2.7%. They fell 0.6% at electronics and appliance stores and 0.7% at grocery stores. There were some bright spots: Sales rose 0.9% at online retailers, 0.8% at clothing stores, and 1.2% at stores.

Sales at restaurants and bars, a closely watched indicator of discretionary spending, fell 0.9% in May, though that followed a solid gain of 0.8% in April.

It is a difficult time for retailers, many of whom built up large inventories this spring after Trump warned that he would impose widespread import taxes. Traffic at the port in Los Angeles has fallen sharply in recent weeks, suggesting fewer goods are entering the United States.

Some consumer products companies say they are seeing the impact of tariffs on their own costs and sales.

Paul Cosaro, CEO of Picnic Time, Inc, which makes picnic accessories like baskets, coolers, and folding chairs, said that orders from retailers are down as much as 40% this summer compared with a year ago. His company sells to a variety of stores like Target and Williams-Sonoma.

Cosaro noted that some stores have been cautious because they’re not sure how shoppers will react to higher prices. Some cancelled orders because Cosaro couldn’t tell them how much the new prices would be due to all the uncertainty. Roughly 80% of the company’s goods are made in China, with the rest in India and .

The company, founded roughly 40 years ago and based in Moorpark, California, was forced to raise prices on average from 11% to 14% for this summer selling season, Cosaro said.

A folding outdoor chair now costs $137 this month, up from $120 in late 2024, he added. The company’s sales are still down this year, even though some shoppers accelerated their purchases out of concern that prices would rise.

“Shoppers are very price sensitive,” Cosaro said.

The company has implemented a hiring freeze because of all the extra tariff costs, he added. So far this year the company, which employs from 70 to 100 people, has had to pay $1 million in tariffs. A year ago at this time, the bill was a third of that amount.

The retail sales report comes as other evidence indicates shoppers have been pulling back more amid worries about higher prices from Trump’s tariffs.

Naveen Jaggi, president of retail advisory services in the Americas for real-estate firm JLL, said that he’s hearing from malls that sales are slowing down heading into the official summer months. Retailers are pushing up back-to-school promotions to this month from July, he said. They want to get shoppers in early for fear consumers may not want to spend in the later months when prices will likely go up, he said.

So far, Trump’s tariffs haven’t yet boosted inflation. Consumer prices rose just 2.4% in May compared with a year ago, the government said last week.

Many stores and brands, including Walmart, Lululemon, and J.M. Smucker Co., have said they plan to or have raised prices in response to tariffs.

Deckers Outdoor, which is behind such shoe labels as Hoka and Uggs, said late last month that it plans price increases, which will likely hurt sales.

“We expect to absorb a portion of the tariff impact,” Chief Financial Officer Steven Fasching told analysts. “We also believe there is potential to see demand erosion associated with the combination of price increases and general softness in the consumer spending environment.”

Bassett CEO Rob Spilman talks tariff strategy, supply chain resilience

Faced with rising  and increasing global supply chain uncertainty, -based  is taking a measured, solutions-focused approach to protect profitability and support its dealer network.

Sitting down with  Today, CEO Rob Spilman outlined how the company is navigating the current trade environment, breaking down the impact of tariffs and offering insight into the long-term strategies guiding its operations.

While most of Bassett’s finished products are assembled in the United States, Spilman emphasized that the real impact of tariffs hits deeper — at the component level. “We’re very much part of the global economy,” he said. “We rely on components like motors, mechanisms and fabrics — many of which come from overseas.”

Spilman noted that approximately 50% of Bassett’s upholstery fabrics originate in China, with other components sourced from a mix of Asian and international suppliers. For point of reference, Bassett noted that fabric represents roughly 15% of the cost that goes into a sofa.

The new round of tariffs has prompted the company to break down its supply chain segment by segment and country by country. “It’s been complicated,” he said, “but we’ve developed specific strategies for each product category.”

To address rising costs, Bassett introduced selective price increases and added a targeted tariff surcharge, moves that were designed with dealer and consumer sensitivity in mind. “We didn’t take a blanket approach,” said Spilman. “We were strategic about how we applied changes, and the response at market was very positive.”

The company has also expanded sourcing efforts in countries such as  and India, diversifying its supply chain to reduce over-reliance on any one market. This geographic diversification, Spilman said, is critical for long-term resilience.

Internally, Spilman credits a seasoned management team and a culture of transparent communication for guiding the company through volatile conditions. Weekly meetings, daily check-ins and consistent messaging have helped Bassett stay focused on its goals without overreacting to short-term disruptions.

“We’re not making radical changes to our business model,” Spilman said. “We’re staying the course with smart, incremental adjustments. It’s about execution, communication and staying true to our value proposition.”

This article was assisted by an AI engine and reviewed, fact-checked and edited by Furniture Today’s editorial staff.

Sentara, VWU sign letter of intent for health sciences college

Sentara Health and plan to establish a new degree program at the private college, according to a Monday announcement.

The health system and signed a letter of intent to create the of Virginia Wesleyan University. The announcement comes after Sentara said in April it would end its degree programs at the Sentara College of Health Sciences in Chesapeake, instead transitioning those programs to state and regional universities.

“We look forward to working closely with Virginia Wesleyan University to create new opportunities for students, expand access to in-demand programs and help meet the growing health care needs of the communities we serve,” Dennis Matheis, president and CEO of , said in a statement Monday.

Sentara College of Health Sciences currently has 238 degree-seeking students enrolled in nursing, cardiovascular technology and surgical technology programs, according to a Sentara spokesperson. It also has 20 students enrolled in a patient care technician summer program and has 100 students admitted to certificate programs that begin in the fall. 

Current students at Sentara’s college in Chesapeake, according to the health system, will be able to complete their programs “either at SCOHS or through a designated partner.” Sentara’s college will continue to offer certificate classes.

Details of the proposed collaboration between Sentara and VWU are still being worked out.

“We are honored to expand our longstanding partnership with Sentara Health through the establishment of the Sentara College of Health Sciences of Virginia Wesleyan University,” Scott D. Miller, VWU’s president, said in a statement. “This bold step reflects our shared commitment to addressing critical health care workforce needs while advancing access to high-quality education. By uniting Sentara’s rich legacy of health care excellence with Virginia Wesleyan’s academic infrastructure and student-centered mission, we are creating a powerful model for the future of health sciences education in Coastal Virginia and beyond.”

In 2025, Virginia has a demand for 82,540 registered nurses, but only 57,720 folks to fill those , according to the U.S. Department of Health and Human Services’ Health Resources and Services Administration. Nursing isn’t the only health field facing a worker shortage. Most health care jobs in Virginia, from medical laboratory technicians to physical therapists, are also in short supply.

Virginia Wesleyan University has 1,674 undergraduate students and 131 graduate students. A not-for-profit health system, Sentara operates 11 hospitals in Virginia and one in northeastern North Carolina. It has 34,000 employees. The Sentara Health Plans insurance division has more than 1 million members in Virginia and Florida.

GDIT secures $396M Special Operations Command contract

General Dynamics won a $396 million contract to support the U.S. Special Operations Command, the federal contractor announced Friday.

Awarded in April, the Information Technology Enterprise contract has a one-year base period and four option years. The subsidiary of Reston-based Fortune 100 aerospace and company will provide enterprise IT services to support Special Operations Forces’ missions worldwide. will use its AI capabilities to improve operational effectiveness and decision-making, migrate SOF to a multicloud environment and implement zero trust solutions to improve cybersecurity.

“Modern warfare is constantly evolving, and enhancing SOF’s digital capabilities is critical to mission success,” Brian Sheridan, GDIT’s senior vice president for defense, said in a statement. “We look forward to delivering a cutting-edge IT network that ensures our elite military units are connected to the intelligence they need to stay ahead in every mission.”

GDIT received a similar contract last year. In February 2024, the company announced it had won a $493 million task order to provide technical and mission services contract to SOCOM and its partners.

General Dynamics has more than 110,000 employees worldwide and reported $47.7 billion in 2024 revenue. It ranked No. 96 on the 2025 Fortune 1000. GDIT has about 30,000 employees and operates across more than 50 countries.

The Trump family’s next venture, a mobile phone company

SUMMARY:

NEW YORK (AP) — The Trump family is licensing its name to a new mobile phone service, the latest in a string of ventures announced while Donald Trump is in the White House despite ethical concerns that the U.S. president could mold public policy for personal gain.

Eric Trump, the president’s son running The Trump Organization in his absence, announced a new venture Monday called Trump Mobile. The plan is to sell phones that will be built in the U.S., and the phone service will maintain a call center in the country as well.

The announcement of the new mobile phone and service, called T1 Mobile, follows several  for towers and resorts in the Middle East, including a golf development in Qatar announced in April. A $1.5 billion partnership to build golf courses, hotels and real estate projects in Vietnam was approved last month, though the deal was in the works before Trump was elected.

Even oversight of such a company, with the Trump name attached, raises ethical concerns.

Trump has already used the federal government to reward his allies and punish his enemies. The Federal Communications Commission, the primary regulatory body overseeing mobile phone companies, has already launched investigations of media outlets Trump dislikes and, in some cases, is personally suing.

Eric Trump said Monday that consumers deserve a phone that aligns with their values.

“Hard-working Americans deserve a wireless service that’s affordable, reflects their values, and delivers reliable quality they can count on,” he said in a statement.

The company would also enter a highly competitive market that includes companies that have been directly attacked by Donald Trump.

The president criticized Apple last month because it planned to make most of its U.S. iPhones in India, and threatened to slap a 25% tariff on the devices unless the tech giant starts building the phones domestically.

The Trump phone deal comes as a mandatory financial disclosure report just filed with the government shows the president has moved fast in the last year to profit off his celebrity, taking in $3 million in revenue from selling “Save America” coffee table books, $2.8 million from Trump watches and $2.5 million from Trump branded sneakers and fragrances.

The Trump Organization on Monday said the new, gold-colored phone available for $499 in August, called the T1 Phone, won’t be designed or made by Trump Mobile, but by another company.

The Trump Organization did not respond immediately to a request for more details.

In the first term, Trump was blasted by conservative and liberal government ethics experts alike for opening his Washington hotel to lobbyists and diplomats and violating his company’s pledge to avoid even the appearance of a conflict between his private profit and the public interest.

The company is feeling more emboldened now in the second term.

The mobile service is partnering with existing cellular carriers with access to a 5G network, raising questions of how they will be treated by federal regulators now that they have partnered with his company. The Trump Organization said those companies are America’s three biggest mobile network providers, an apparent reference to Verizon, AT&T and T-Mobile, the latter with a trademarked name that is very similar to Trump’s T1 Mobile.

The name given to the monthly service offer, The 47 Plan, and the monthly fee of $47.45 make reference to Trump’s two terms, the 45th and the 47th. The service will include unlimited calls, texts and data and free roadside assistance and telehealth services.

A mock-up of the planned phone on the company’s website shows Trump’s slogan “Make America Great” on the front and an etched American flag on the back.

By sticking to licensing, the Trump family is limiting its risk. Still, the new service faces big challenges if it hopes to sell beyond the president’s loyal MAGA fans.

The Trump company tried to tap into support among the middle class in the first term with two mid-priced hotel chains. Called American Idea and Scion, and unveiled like the phone service Monday under a giant U.S. flag in the Trump Tower atrium, they flopped.

Despite taking in millions of dollars each year in various licensing deals and a string of new ventures, the Trump brand has taken a series of hits to its brand over the years.

During his first term, the Trump name was stripped off residential buildings and hotels in Toronto, Panama and Manhattan.

The Trump International Hotel in Washington, since sold, lost money even though the family opened its doors to businesses and governments trying to shape U.S. policy.

The average condo in 11 Trump-branded residential towers around the country underperformed the broader market during and immediately after Trump’s first term. More recently, the value of Trump condos in New York City fell in the past two years as similar properties rise in value, according to brokerage CityRealty.

The Trump Organization has had more success with some ventures launched in the first few months of his second term.

Trump Media & Technology Group, a Florida company that operates the Truth Social media platform, filed plans with security regulators Monday to launch an exchange-traded fund tied to the prices of two popular cryptocurrencies.

The ETF is part of the Trump family’s rapidly growing crypto empire, which includes a new stablecoin and launching and promoting memecoins.

The president’s most recent financial disclosure report reveals he made more than $57 million last year from World Liberty Financial, a crypto company he and his sons helped launch in September.