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Philanthropist MacKenzie Scott gave $7.1 billion to nonprofits in 2025, a major increase

Summary

  • donated $7.1 billion to nonprofits in 2025, a major increase from previous years.
  • received at least $783 million in gifts, part of $1.35 billion Scott has given them since 2020.
  • and Native Forward Scholars Fund received major unrestricted donations.
  • Scott’s giving model emphasizes equity and unrestricted support, with no applications or reporting required.

NEW YORK (AP) — The author and philanthropist MacKenzie Scott revealed $7.1 billion in donations to nonprofits in 2025 Tuesday, marking a significant increase in her annual giving from recent years.

Writing in an essay on her website, Scott said, “This dollar total will likely be reported in the news, but any dollar amount is a vanishingly tiny fraction of the personal expressions of care being shared into communities this year.”

Scott acknowledged donating $2.6 billion in 2024 and $2.1 billion in 2023. The gifts this year bring her total giving since 2019 to $26.3 billion.

Scott’s donations have captured the attention of nonprofits and other charitable funders because they come with no strings attached and are often very large compared to the annual budgets of the recipient organizations. Forbes estimates Scott’s net worth at $33 billion, most of which comes from shares she received after her 2019 divorce from company founder Jeff Bezos..

With the exception of an open call for applications in 2023, it is not possible to apply for her funding nor to reach her directly, as Scott maintains no public facing office or foundation. Organizations are usually notified through an intermediary that Scott is awarding them a donation with little prelude or warning.

In advance of her announcement on her website, Yield Giving, more than a dozen historically Black colleges and universities revealed they had received $783 million in donations from Scott so far this year, according to research from Marybeth Gasman, a professor at Rutgers University and expert on HBCUs.

“One of the things that I really admire about Mackenzie Scott is that she is like an equity machine,” Gasman said, especially at a time when efforts to promote equity in education have come under attack from the Trump administration. She also said Scott’s gifts to HBCUs this time are bigger than the round of donations she made in 2020.

Not all of the schools that previously had received funding from Scott received a gift this time and there were some first-time recipients as well. In total, Gasman has tracked $1.35 billion in donations from Scott to HBCUs since 2020.

In addition, UNCF, which is the largest provider of scholarships to minority students, received $70 million from Scott, and said it will invest the gift in a collective endowment it is building for participating HBCUs. Another $50 million went to Native Forward Scholars Fund, which had also received a previous gift from Scott and provides college and graduate scholarships to Native American students.

Unlike Scott’s gifts, most foundations or major donors direct grants to specific programs and require an application and updates about the impact of the nonprofit’s work. Scott does not ask grantees to report back about how they used the money.

Research from the Center for Effective in 2023 looked at the impact of Scott’s giving and found few of the recipients have struggled to manage the funds or have seen other funders pullback.

Kim Mazzuca, the CEO of the California-based nonprofit, 10,000 Degrees, said her organization was notified of its first gift from Scott of $42 million earlier this year.

“I was just filled with such joy. I was speechless and I kind of stumbled around with my words,” she said, and asked the person calling from Fidelity Charitable to clarify the donation amount, which is about double their annual budget.

10,000 Degrees provides scholarships, mentoring and other support to low-income students and aims to help them graduate college without taking on loans. Mazzuca said that usually nonprofits grow only gradually, but that this gift will allow them to reach more students, to test some technology tools and to start an endowment.

Mazzuca credited Scott for investing in proven solutions that already exist.

“She comes from a very deep, reflective space, very heartfelt,” Mazzuca said. “And she’s only providing these financial means as a tool for to recognize they are who they’ve been waiting for.”

That idea references a prophecy from the Hopi Tribe that ends with the line, “We are the ones we’ve been waiting for.” Mazzuca said she’s drawn on the prophecy for years to empower both her organization and the students it supports to recognize their own power to shape our world.

In October, Scott posted an essay on her website under that title and sharing the prophecy. The essay, which she expanded upon in December to announce her giving, also reflects on how acts of generosity and kindness can ripple far afield and into the future. She cited her own experiences getting help while in college, including a dentist who repaired a tooth for free and her roommate who loaned her $1,000.

Scott now has invested in that same roommate’s company, which offers loans to students who would otherwise struggle to get financing from banks. The investments seem to be part of an effort Scott announced last year to move more of her money into “mission aligned” investments, rather than into vehicles that seek only the highest monetary returns.

In her 2025 essay, Scott seemed to urge people toward action, writing, “There are many ways to influence how we move through the world, and where we land.”

OpenAI names Slack’s Denise Dresser first chief of revenue

SAN FRANCISCO (AP) — OpenAI said Tuesday it has picked Slack CEO Denise Dresser as its first chief of revenue, a message to wary investors that the ChatGPT maker is serious about making a profit from its artificial intelligence technology.

OpenAI said Dresser will oversee global revenue strategy and “will help more businesses put AI to work in their day-to-day operations.”

Dresser had already spent more than a decade at Salesforce when the software pioneer announced in 2020 it was buying work-chatting service Slack for $27.7 billion. She helped integrate Slack into the software company before Salesforce CEO Marc Benioff picked her as CEO in 2023.

OpenAI CEO Sam Altman earlier this month set off a “code red” alert in an internal email to employees to improve its flagship product, ChatGPT, and delay other product developments.

OpenAI first released ChatGPT just over three years ago, sparking global fascination and a commercial boom in generative AI technology and giving the San Francisco-based startup an early lead. But the company faces increased competition with rivals, including , which last month unleashed Gemini 3, the latest version of its own AI assistant.

Altman said this fall that ChatGPT now has more than 800 million weekly users. But the company, valued at $500 billion, doesn’t make a profit and has committed more than $1 trillion in financial obligations to the cloud computing providers and chipmakers it relies on to power its AI systems.

The risk that OpenAI won’t make enough money to fulfill the expectations of backers like Oracle and has amplified investor concerns about an AI bubble.

OpenAI makes revenue from premium subscriptions to ChatGPT, but most users get the free version. OpenAI introduced its own web browser, Atlas, in October, an attempt to compete with Google’s Chrome as more internet users rely on AI to answer their questions. But OpenAI hasn’t yet tried to sell ads on ChatGPT, which is how Google makes money from its dominant search business.

Altman’s early December memo said the company was delaying work on advertising, AI agents for health and shopping, and a personal assistant called Pulse.

Trump allows limited Nvidia chip sales to China

Summary

  • Trump authorizes ‘s H200 for sale to vetted customers in .
  • Blackwell and Rubin chips remain restricted.
  • Move draws praise from Nvidia and concern from Democratic senators over risks.
  • Decision comes as Commerce finalizes rules for AMD and Intel exports.
  • Nvidia’s stock ticked up after the announcement.

WASHINGTON (AP) — President said Monday that he would allow Nvidia to sell an advanced type of computer chip used in the development of artificial intelligence to “approved customers” in China.

There have been concerns about allowing advanced computer chips to be sold to China as it could help the country better compete against the U.S. in building out AI capabilities, but there has also been a desire to develop the AI ecosystem with American companies such as chipmaker Nvidia.

The chip, known as the H200, is not Nvidia’s most advanced product. Those chips, called Blackwell and the upcoming Rubin, were not part of what Trump approved.

Trump said on social media that he had informed China’s leader Xi Jinping about his decision and “President Xi responded positively!”

“This policy will support American Jobs, strengthen , and benefit American Taxpayers,” Trump said in his post.

Nvidia said in a statement that it applauded Trump’s decision, saying the choice would support domestic manufacturing and that by allowing the to vet commercial customers it would “strike a thoughtful balance” on economic and national security priorities.

But a group of Democratic senators objected to the chip sales.

“Access to these chips would give China’s military transformational technology to make its weapons more lethal, carry out more effective cyberattacks against American businesses and critical infrastructure, and strengthen their economic and manufacturing sector,” said the statement.

The group included Sens. Chris Coons of Delaware, Jeanne Shaheen of New Hampshire, Jack Reed of Rhode Island, Elizabeth Warren of Massachusetts, Brian Schatz of Hawaii, Andy Kim of New Jersey, Michael Bennet of Colorado and Elissa Slotkin of Michigan.

The senators noted that Chinese AI company DeepSeek recently said the lack of access to advanced American-designed chip was their biggest challenge in competing with U.S. companies involved in AI, with companies including OpenAI, , Microsoft, Anthropic, Perplexity and Palantir making major investments in developing the technology.

Mark Warner, Virginia’s senior Democratic U.S. senator, released a statement Tuesday noting his objection.

“American companies must remain the undisputed leader in AI hardware because our strategic competition with China on AI will boil down to whose ecosystem drives adoption and innovation globally, as NVIDIA has acknowledged,” Warner said in the statement. “Unfortunately, the Trump administration’s haphazard and transactional approach to export policy demonstrates that it does not have any sort of coherent strategy for how we will compete with China, specifically as it relates to whose chips, tools, cloud infrastructure and ecosystem will influence the most AI developers worldwide. I fear that with no strategic vision for that broader competition across multiple key dimensions of AI innovation, this administration risks squandering U.S. AI leadership and deferring to the ‘s Republic of China up and down the AI stack.”

Trump said the Commerce Department was “finalizing the details” for other chipmakers such as AMD and Intel to sell their technologies abroad.

The approval of the licenses to sell Nvidia H200 chips reflects the increasing power and close relationship that the company’s founder and CEO, , enjoys with the president. But there have been concerns that China will find ways to use the chips to develop its own AI products in ways that could pose national security risks for the U.S., a primary concern of the Biden administration that sought to limit exports.

Nvidia has a market cap of $4.5 trillion and Trump’s announcement appeared to drive the stock slightly higher in after hours trading.

Virginia Business contributed to this story. 

Fed faces divided debate ahead of expected rate cut

WASHINGTON (AP) — The faces an unusually contentious meeting this week that will test Chair ‘s ability to corral the necessary support from fellow policymakers for a third straight interest .

The Fed’s 19-member rate-setting committee is sharply divided over whether to lower borrowing costs again. The divisions have been exacerbated by the convoluted nature of the economy: remains elevated, which would typically lead the Fed to keep its key rate unchanged, while hiring is weak and the rate has risen, which often leads to rate cuts.

Some economists expect three Fed officials could vote against the quarter-point cut that Powell is likely to support at the Dec. 9-10 meeting, which would be the most dissenting votes in six years. Just 12 of the 19 members vote on rate decisions. Several of the non-voting officials have also said they oppose another rate cut.

“It’s just a really tricky time. Perfectly sensible can reach different answers,” said William English, an economist at the Yale School of Management and a former top Fed staff member. “And the committee kind of likes to work by consensus, but this is a situation where that consensus is hard to reach.”

The debate, which has also been fueled by a lack of official federal data on employment and inflation during the government shutdown, could be a preview of where the Fed is headed after Powell’s term as chair ends in May. His successor will be appointed by President and is widely expected to be Kevin Hassett, the top White House economic adviser. Hassett may push for faster cuts than other officials would be willing to support.

English said the potential for greater disagreement could be seen as a sign of healthy debate between different views. The Fed’s tradition of reaching unanimous or nearly-unanimous decisions has often been criticized as evidence of “groupthink.” Yet some Fed officials warn that there are downsides to sharp splits. If the committee votes end up as 8-4 or even 7-5, then financial markets could lose confidence in where the central bank is headed next.

Fed Governor Christopher Waller, for example, has said that in the case of a 7-5 vote, if just one official changed their view, it could bring about a significant shift in Fed policy.

For now, however, most economists expect what’s called a “hawkish cut” — the Fed will reduce rates, while also signaling that it may stand pat for some time to assess the economy’s health. (“Hawks” refer to officials who generally support higher rates to combat inflation, while “doves” more often support lower rates to boost hiring).

The president of the Kansas City Federal Reserve Bank, Jeffrey Schmid, is expected to dissent for a second straight meeting in favor of keeping rates unchanged. He may be joined by St. Louis Fed president Alberto Musalem. Fed governor Stephen Miran, who was hurriedly appointed to the Fed’s board by Trump in September, will likely dissent for a third straight meeting in favor of a larger, half-point reduction in the Fed’s key rate.

After the Fed’s last meeting Oct. 28-29, several policymakers said they would prefer to keep rates unchanged at the December meeting, leading Wall Street investors to briefly downgrade the odds of a third rate cut to less than 30%. But then John Williams, president of the New York Fed, said that this year’s uptick in inflation appears to be a temporary blip driven by Trump’s that would likely fade by the middle of 2026.

As a result, “I still see room for a further adjustment” in the Fed’s short-term rate, Williams said. As president of the New York Fed and vice chair of the rate-setting committee, Williams gets to vote on every interest rate decision and is close to Powell. Analysts said it was unlikely Williams would have made such a statement without Powell’s support. Investors rapidly lifted the odds of a cut, which now are at 89%, according to CME Fedwatch.

“You’re seeing the power of the chair,” said Nathan Sheets, chief global economist at Citi and also a former top Fed staffer. “Members of the committee, my instinct is, are wanting to underscore their support for Powell.”

Powell has come under relentless attack from Trump, who just last month said he would “love to fire his ass” and called Powell “this clown.”

The Fed is required by Congress to seek low inflation and maximum employment, two goals that are potentially in conflict.

For now, Powell and many other Fed officials are more concerned about hiring and unemployment rather than inflation. While the official government jobs reports have been delayed, in September the unemployment rate ticked up to 4.4%, the third straight increase and the highest in four years.

Payroll provider ADP, meanwhile, reported that in November, its data showed companies shed 32,000 jobs. And many large firms have announced sweeping .

Worries that the job market could get worse are a key reason a rate cut in December is likely — but not necessarily beyond that. Fed officials will have up to three months of backlogged jobs and inflation data to consider when they meet in late January. Those figures could show inflation remains stubbornly high or that hiring has rebounded, which would suggest further cuts aren’t needed.

“What they may end up agreeing to do is cut rates now, but give some guidance … that signals that they’re on pause for a while after that,” Kathy Bostjancic, chief economist at Nationwide, said.

U.S. job openings barely budged in October, coming in just below 7.7 million

Summary

  • in October were 7.67 million, nearly unchanged from September.
  • rose to 1.9 million, the highest since January 2023.
  • Quits declined, showing weaker worker confidence and mounting labor-cost pressure.
  • Fed meets this week as , and a shaky job market fuel tension.

WASHINGTON (AP) — U.S. job openings barely budged in October, coming in at 7.7 million with ongoing uncertainty over the direction of the American economy.

The Labor Department reported Tuesday that employers posted 7.67 million vacancies in October, close to September’s 7.66 million.

The Job Openings and Labor Turnover Survey (), which was delayed by the extended government shutdown, also showed that the layoffs rose to almost 1.9 million, most since January 2023. And the number of quitting their jobs — a sign of confidence in the — fell in October, suggesting that “businesses seeking to control labor costs will have to pivot to active layoffs, lifting , rather than rely on natural attrition,” Samuel Tombs, chief U.S. economist at Pantheon, wrote in a commentary.

Job openings have come down steadily since peaking at a record 12.1 million in March 2022, when the economy was roaring back from COVID-19 lockdowns. The job market has cooled partly because of the lingering effect of the high the Federal engineered in 2022 and 2023 to combat an outburst of inflation.

Overall, it’s a puzzling time for the American economy, buffeted by President ‘s decision to reverse decades of U.S. policy in favor of free trade and instead impose double-digit tariffs on imports from most of the world’s countries.

Policymakers at the Federal Reserve are meeting this week to decide whether to cut their benchmark interest rate, and the gathering is expected to be unusually contentious. Inflation remains stuck above the Fed’s 2% target, partly because importers have tried to pass along the cost of Trump’s tariffs by raising prices. Normally, stubborn inflation would discourage Fed policymakers from cutting rates. But the job market has looked shaky in recent months, and the Fed is expected to reduce its benchmark rate for the third time this year, though some policymakers might dissent.

Meanwhile, the 43-day federal shutdown has made a mess of the government’s economic statistics.

The October report on job openings came out a week late, and the September version was not published separately because federal data collectors were on furlough. Instead, September’s JOLTS numbers were folded into Tuesday’s report along with October’s. They showed a hefty increase in openings from 7.23 million in August.

The Labor Department will issue numbers for hiring and unemployment for November next Tuesday, 11 days later than originally scheduled. The department is not releasing an unemployment rate for October because it could not calculate the number during the shutdown. It will release some of the October jobs data — including the number of positions that employers created that month — along with the full November jobs report.

Forecasters surveyed by the data firm FactSet predict that employers added fewer than 38,000 jobs in November and that the unemployment rate ticked up to 4.5% from September’s 4.4%. That would be low by historical standards, but the highest in nearly four years.

Rising Property Taxes in Virginia: Understanding the Causes and How Homeowners Can Combat Rising Costs

Many homeowners see property tax bills rise as their home values increase. While there has been ongoing discussion about placing limits on how much property taxes can increase, property owners still need to make tax payments due now.

This situation can be particularly challenging for homeowners managing on a set budget. However, it is not as hopeless as it may seem. This article outlines the key factors behind rising property taxes in Virginia and offers a look at some potential ways homeowners can manage the costs.

Root Causes of Rising Property Taxes in Virginia

The property tax is among the most widely discussed issues in this state. There are many reasons underlying the decision to raise this tax:

  • Local funding needs. Growing demand for public services such as schools, emergency response, and infrastructure contributes to the overall need for local funding. As costs rise, property taxes often serve as one of the primary tools for meeting those financial needs.
  • Increased property value. The major reason is that demand is outpacing supply. The real estate market in Virginia is characterized by limited housing inventory. However, many strive to live exactly in this state. Rising development and costs led to higher home prices, respectively.
  • Reassessment cycles. Improper property assessment may increase the amount of property tax due. In Virginia, homeowners need to assess their real estate every one to five years. During each following reassessment, the property value may rise, leading to an increase in the amount of property tax due.

How Homeowners Can Combat Rising Property Taxes

For those property owners with a fixed income, these solutions can ease their financial burden before the respective updates are made:

  • Challenging property assessment. If you see that your property’s value is inflated or inaccurate, you can challenge its assessment. In this case, you can arrange a reassessment or appeal the valuation. This solution has great potential to lower your property tax bill. When you compare similar properties in the market and see a big difference, it is the case when you need a property reassessment.
  • Leverage state and local tax relief programs where applicable. Of course, this option is unfortunately not available to all homeowners. However, it is better to double-check this point yourself or seek professional legal advice. For instance, seniors who are 65 or older and disabled individuals are eligible for a property tax exemption. If you comply with the requirements, regarding income first, you can significantly reduce the amount of property tax due.
  • Consider tax deferral programs. Even though it is a temporary relief, it is a relief. However, the tax deferral programs are designed for specific categories of individuals, such as seniors and property owners facing financial constraints. These programs allow owners to defer paying tax due until the home is sold or the property changes hands.
  • Use the homestead tax exemption. In some areas, property owners may be eligible for a homestead tax exemption. It can considerably reduce the taxable value of property. In Virginia, you can enjoy a homestead exemption when you occupy your primary residence, reducing the property’s taxable value by a certain amount. While this solution is not universal, it is worth checking it in your case.
  • Refinance your mortgage if any. If you have a mortgage, dealing with high property taxes can be quite complicated. There is no need to struggle with the growing financial pressure. You can negotiate refinancing terms for your mortgage to provide some relief. As one of the most popular and workable options, you may negotiate a lower interest rate.
  • Consider downsizing or relocation. These solutions are the last resort. However, they may be single options in certain cases. If paying the property tax in Virginia becomes unbearable, consider downsizing first. If this solution doesn’t improve the situation, it may be reasonable to sell your property and relocate to another area or even another state. It can provide significant savings without any extra challenges. If you’re considering selling your property quickly and exploring competitive pricing options, you may consider cash sale options as an alternative to traditional listings. These may involve fewer repairs, fees, or inspections, depending on the company.

Bottom Line

Property tax in Virginia is among the most discussed issues within this state. While reasons for its increase remain justifiable, many property owners across the state find paying it unbearable. However, it is not a hopeless situation.

Some homeowners may be eligible for certain state and local tax relief or deferral programs. In certain cases, changing property assessment or downsizing may only be the single workable solution. If you have a mortgage, you can also restructure it to release extra funds to cover the property tax due.

However, in certain cases, selling a property may be a single solution. Homeowners considering a sale may want to research available options in their area, including companies that specialize in direct home purchases.

The information provided in this article is for general informational and educational purposes only. It is not intended as legal, financial, medical, or professional advice. Readers should not rely solely on the content of this article and are encouraged to seek professional advice tailored to their specific circumstances. We disclaim any liability for any loss or damage arising directly or indirectly from the use of, or reliance on, the information presented.

 

 

EU probes Google over possible AI antitrust violations

Summary

  • EU opens investigation into ‘s .
  • Regulators examining use of publisher and content without permission.
  • Probe targets Google’s and AI Mode services.
  • EU also reviewing whether Google restricted rival AI developers.

LONDON (AP) — Google faces fresh antitrust scrutiny from regulators, who opened an investigation Tuesday into the company’s use of online content for its artificial intelligence models and services.

The flurry of regulatory flexing by Brussels that has targeted Big Tech risks antagonizing President ‘s administration, though EU officials denied they were singling out American companies.

The European Commission, which is the 27-nation bloc’s top antitrust enforcer, said it’s examining whether Google has breached competition rules through its use of content from web publishers and material uploaded to YouTube for AI purposes.

Regulators are concerned that Google has given itself an unfair advantage by using content for two search services, AI Overviews and AI Mode, without paying publishers and content creators or letting them opt out. AI Overviews are automatically generated summaries that appear at the top of its traditional search results, while AI Mode provides chatbot-style answers to search queries.

They’re also examining whether Google uses videos uploaded to YouTube under similar conditions to train its generative AI models, while shutting out rival AI model developers.

Officials said they’re seeking to determine whether Google gained an edge over AI rivals by imposing unfair terms and conditions, or giving itself privileged access to content.

“This complaint risks stifling innovation in a market that is more competitive than ever,” Google said in statement. “Europeans deserve to benefit from the latest technologies and we will continue to work closely with the news and creative industries as they transition to the AI era.”

The Commission, which is the bloc’s executive arm, is carrying out the investigation under the EU’s longstanding competition regulations, rather than its newer Digital Markets Act that was was drawn up to prevent Big Tech companies from monopolizing online markets.

“AI is bringing remarkable innovation and many benefits for and businesses across Europe, but this progress cannot come at the expense of the principles at the heart of our societies,” Teresa Ribera, the commission’s vice president overseeing competition affairs, said in a statement.

Last week the Commission opened an antitrust investigation into WhatsApp’s AI policy. It also fined Elon Musk’s social media platform X 120 million euros ($140 million) for breaching digital regulations, which drew complaints from Trump officials that American companies were being targeted.

The Commission is “agnostic” about the nationality of companies it is investigating, spokeswoman Arianna Podesta said.

“Of course, the sole focus of our antitrust investigations is a possible illegal behavior and the harm that this could bring to competition and consumers within the European Union,” she told reporters at a regular briefing in Brussels.

Google will have the chance to reply to the concerns and the Commission has also informed U.S. authorities about the investigation, she said.

Brussels has no deadline to wrap up the case, which could result in sanctions including a fine worth up to 10% of the company’s annual global revenue.

Virginia legislature appoints new automated systems director

The has appointed Fritz Sassine as director of the , the division that oversees the state’s Information System.

Sassine, who most recently was assistant director of IT, and project management for the state attorney general’s office, will join DLAS on Wednesday, according to the General Assembly’s announcement Monday.

In addition to working for more than 30 years in IT and cybersecurity roles in both the private and public sectors, Sassine is a company commander with the Virginia Defense Force Cyber Battalion. He also founded HaitiKids, a nonprofit organization that supports medical mission trips, and has flown young patients and their families to the United States with Angel Flight as a private pilot.

DLAS is a legislative branch agency that reports to the General Assembly’s Committee on Joint Rules, and it is responsible for maintaining the Legislative Information System, which provides public access to state legislative bills introduced before and during the GA session. The division also performs computing and programming services, manages the ‘s Bill Room and facilitates other legislative branch initiatives upon request.

The Virginia General Assembly’s 2026 regular session will start Jan. 14, 2026.

Stocks slip as S&P 500 pulls back from record high

Summary

  • , Dow and edge lower after recent record highs.
  • drops after leadership shake-up announcement.
  • jumps on Paramount shareholder offer.
  • Treasury yields rise ahead of Fed meeting expected to signal fewer 2026 rate cuts.

NEW YORK (AP) — U.S. stocks pulled away from their record heights. The S&P 500 slipped 0.3% Monday, though it remains close to its all-time high set in October. The Industrial Average fell 0.4%, and the Nasdaq composite dipped 0.1%. Berkshire Hathaway weighed on the market after announcing a shake-up of some of its top leadership. Warner Bros. Discovery jumped after Paramount took an offer to buy the company directly to its shareholders. Treasury yields rose ahead of the ‘s Wednesday meeting. The wide expectation is for it to cut but also hint at fewer cuts in 2026.

THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.

NEW YORK (AP) — U.S. stocks are pulling away from their record heights on Monday.

The S&P 500 slipped 0.6% in afternoon trading, though it remains within 0.9% of its all-time high set in October. The Dow Jones Industrial Average was down 318 points, or 0.7%, as of 2:11 p.m. Eastern time, and the Nasdaq composite was 0.5% lower.

Berkshire Hathaway was a heavy weight on the market and fell 1.7% after announcing a shake-up of some of its top leadership. Todd Combs, who had been CEO of the company’s GEICO insurance business, is leaving for a job at JPMorgan Chase, while Chief Financial Officer Marc Hamburg will retire next year.

Netflix dropped 4.2% after Paramount announced a bid in hopes of trumping Netflix’s deal to buy Warner Bros., which was announced last week.

Paramount said it’s offering $30 for each Warner Bros. Discovery share, as well as a quicker and easier way for investors to get their payout. Paramount is offering to buy all of Warner Bros. Discovery in cash, unlike Netflix’s offer of cash and stock for just Warner Bros. following its pending split with Discovery.

The board of directors for Warner Bros. Discovery had agreed to Netflix’s offer last week, but it’s already facing potential scrutiny from federal regulators because of worries about too much industry power sitting at one company. President  said Sunday that a Netflix-Warner Bros. combination “could be a problem.”

Warner Bros. Discovery rose 3.3% following the hostile buyout bid, and Paramount Skydance’s stock climbed 7.7%.

Elsewhere on Wall Street, Confluent soared 29.3% after IBM said it would buy the company, which helps customers connect and process data. IBM said the $11 billion deal will help customers deploy artificial-intelligence tools better and faster, and its shares added 0.6%.

Carvana jumped 13.3% in its first trading after learning it will join the S&P 500 index on Dec. 22. Many professional investors directly mimic the index or at least measure their performance against it, which will push many to buy any stocks within it.

CRH, a provider of building materials, rose 5.1%, and Comfort Systems USA, a provider of mechanical and electrical contracting services, was mostly unchanged after likewise learning they’ll join the S&P 500 in a couple weeks.

They will replace LKQ, Solstice Advanced Materials and Mohawk Industries, which have all shrunk enough in size that they’ll drop down to the S&P SmallCap 600 index of smaller stocks.

CoreWeave sank 5% after the AI cloud company said it’s raising $2 billion in debt that it could repay in stock and cash.

Moves elsewhere on Wall Street were relatively modest. The U.S. has become much more calm recently following weeks of sharp and scary swings.

The highlight of this week will come Wednesday, when the Federal Reserve will announce its latest move on interest rates.

Stocks have already run to the edge of their records on widespread expectations that the Fed will cut its main interest rate for the third time this year. Lower interest rates can give the economy and prices for investments a boost, though their downside is that they can worsen .

The big question is what kind of hints the Fed will offer about where interest rates will go after that. Many on Wall Street are bracing for talk aimed at tamping down expectations for more cuts in 2026.

Inflation has stubbornly remained above the Fed’s 2% target, and Fed officials are notably split in their opinions about whether high inflation or the slowing job market is the bigger threat to the economy.

In the bond market, Treasury yields climbed. The yield on the 10-year Treasury rose to 4.17% from 4.14% late Friday.

In stock markets abroad, indexes slid 1.2% in Hong Kong but jumped 1.3% in South Korea for two of the world’s bigger moves.

Chesterfield County lab settles with DOJ in alleged kickback scheme

SUMMARY:

  • agreed to pay $758,000 to settle federal kickback allegations
  • The alleges doctors and marketers were paid disguised fees to refer patients for lab tests
  • Next has not admitted wrongdoing and said payments were made by third-party marketers

-based clinical laboratory Next Bio-Research Services has agreed to pay at least $758,000 to settle allegations that it paid illegal to physicians and independent marketers to secure laboratory test referrals.

The resolves accusations made under the False Claims Act, though there has been no determination of liability.

said last week that Next, doing business as Next Molecular Analytics, allegedly paid doctors in Texas and Arkansas thousands of dollars in kickbacks, disguised as consulting and medical director fees that were actually intended to induce the doctors to order the company’s laboratory tests, which were billed to federally funded programs like Medicaid, Medicare and Tricare. The also alleged that Next paid commissions to independent contractor marketers based on the volume and value of referrals they secured from providers.

The settlement agreement outlines the government’s contention that the kickbacks were paid by independent contractor marketers working on Next’s behalf. The government alleges that California-based OC Genetic Consultants arranged for other Next contractors — including Texas-based BeauMed Consultants and South Carolina-based Ralston Health Group — to make monthly payments to physicians. The federal government argues that Next failed to exercise sufficient oversight and paid the contractors commissions that violated federal law.

The agreement specifies that the contractors made payments to one physician from January to March 2020, and to another physician from August 2020 through September 2021.

Next President Thomas Reynolds told Virginia Business in an email that the company has not admitted to any wrongdoing as part of the settlement and that the company had contracted with these third parties to market its services “in good faith.”

“The government contended that more than four years ago, certain third-party marketers made payments to doctors who referred testing services to Next,” Reynolds said. “Such payments were explicitly prohibited by Next’s contracts with its third-party marketers. Next stopped using third parties to market our services in 2022. While we strongly disagree with the allegation that Next was aware of or involved in any misconduct, we are pleased to put this matter behind us so that we can continue serving the best interests of our clients with state-of-the-art testing services.”

The federal anti-kickback statute prohibits offering, paying, soliciting or receiving compensation to induce referrals for services covered by Medicare, Medicaid and other federally funded health care programs.

“Physicians should make decisions based the best interests of their patients, not their own personal financial interests,” U.S. Attorney Eric Grant for the Eastern District of California said in a statement. “This settlement demonstrates my office’s commitment to taking all appropriate action to prevent improper inducements that can corrupt the integrity of physician-patient relationships.”

The allegations were first raised in a 2020 lawsuit filed by Sunil Wadhwa and Ken Newton under the provisions of the False Claims Act, which allows private parties to sue on behalf of the government and receive a share of any recovery. The DOJ says that Wadhwa and Newton will receive $113,700 of the proceeds from the settlement.

In 2024, the DOJ settled related allegations for $1.5 million with the company’s national sales director and two contractor marketing firms, OCGC and Ralston Health Group.

Under the agreement, Next will pay $758,000 initially, with the potential for additional amounts if certain financial contingencies occur. Next has agreed to cooperate with the ongoing investigations and litigation against other participants in the alleged schemes.

“We are a small group of scientists providing laboratory testing services for pediatric cancer patients as well as nursing homes,” Reynolds said in his email. “Next has been in business for 10 years proudly servicing our community. We fully cooperated with DOJ throughout this process and will continue to do so if asked.”