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The Latest: As controversies pile up, Trump allies increasingly turn on one another

The infighting and backstabbing that plagued ‘s first term have returned as a threat to his second, with deepening fissures over trade, national security and questions of personal loyalty.

The latest turmoil threatens to engulf the Pentagon, where Defense Secretary Pete Hegseth has pushed out top advisers and faces fresh controversy over sharing sensitive information about airstrikes in Yemen outside of classified channels. Hegseth on Tuesday denied that the information was classified, despite reports that it was pulled from secure communications from the head of U.S. Central Command.

Vice President JD on Tuesday called for enhanced engagement with India and said that the South Asian country should buy more defense equipment and energy from the U.S. and allow Washington greater access to its market, lending momentum to an expected bilateral trade deal.

Here’s the Latest:

Trump plans to leave Friday for Pope Francis’ funeral

Trump is planning to leave Washington on Friday morning to fly to Rome for Pope Francis’ funeral services.

He’ll return Saturday evening, once services are over.

White House press secretary Karoline Leavitt announced the president’s travel plans during her briefing with reporters on Tuesday. She did not provide details on if Trump will meet with foreign leaders during the trip, or who might travel with him as part of a U.S. delegation.

The White House says more details on travel will be coming.

Trump to travel to the Middle East in May

will travel to Saudi Arabia, Qatar and the United Arab Emirates from May 13 to May 16.

White House press secretary Karoline Leavitt confirmed the dates at Monday’s news briefing. Trump would be traveling to the Middle East at a time of ongoing tensions with Iran, the Houthis in Yemen and the ongoing war between Israel and Hamas.

Trump calls attack in Kashmir ‘deeply disturbing’

Trump called reports of the attack on tourists in Kashmir, India “deeply disturbing” and offered support to Indian Prime Minister Narendra Modi.

“The United States stands strong with India against Terrorism. We pray for the souls of those lost, and for the recovery of the injured,” Trump wrote in a post on his social media network.

Kellogg will attend Ukraine talks in London, not Rubio

Secretary of State Marco Rubio will not be attending discussions with Ukrainian and European officials this week in London about peace prospects in Ukraine.

State Department spokeswoman Tammy Bruce told reporters Tuesday that it was a scheduling issue and that retired Lt. Gen. Keith Kellogg, President Donald Trump’s envoy for Ukraine and Russia, would be taking part in those talks.

Speaking of Trump and Rubio, Bruce said, “They want diplomacy to work.”

It comes after Rubio and special envoy Steve Witkoff attended meetings with European and Ukrainian officials last week about efforts to end the Russia-Ukraine war.

After those talks, Rubio said the U.S. may “move on” from trying to secure a peace deal if there is no progress in the coming days, after months of efforts failed to bring an end to the fighting.

Bruce said she could not speak to Russian reports that Witkoff was expected to visit Moscow again this week.

EPA environmental justice workers face layoffs — again

Employees working in environmental justice programs will face layoffs this summer, according to a memo obtained by The Associated Press.

The memo, sent late Monday by EPA Assistant Deputy Administrator Travis Voyles, says employees in the Office of Environmental Justice and External Civil Rights and regional environmental justice divisions will be laid off as of July 31.

The layoffs are “necessary to align our workforce with the agency’s current and future needs and to ensure the efficient and effective operation of our programs,” he wrote.

About 280 employees will be laid off, and another 175 employees were reassigned to other offices, the agency said. The EPA placed 168 workers on administrative leave in February, but many were later called back to work.

-By Matthew Daly

Anti-Defamation League says anger at Israel is driving antisemitism

The ADL recorded a record 9,354 antisemitic incidents in the United States last year — 58% of them related to Israel — including chants, speeches and signs at rallies.

The ADL’s annual report released Tuesday cites widespread opposition to Israel’s military response in Gaza after the Hamas attack on Israel on Oct. 7, 2023. And it says it’s “careful to not conflate general criticism of Israel or anti-Israel activism with antisemitism.”

The debate among American Jews over what exactly constitutes antisemitism has led to a balancing act among Jewish leaders as the Trump administration seeks to punish universities and deport pro-Palestinian campus activists.

“The fears of antisemitism are legitimate and real — and we don’t want to see those real fears exploited to undermine democracy,” said Amy Spitalnick, CEO of the Jewish Council for Public Affairs. “I feel that a majority of American Jews can believe that two things are true at the same time.”

Rubio unveils a massive overhaul of the State Department

The plans include reducing staff in the U.S. by 15% and closing and consolidating more than 100 bureaus worldwide as part of the Trump administration’s “America First” mandate.

The reorganization plan, announced by Secretary of State Marco Rubio on social media and detailed in documents obtained by The Associated Press, is the latest effort by the White House to reimagine U.S. foreign policy and scale back the size of the federal government.

“We cannot win the battle for the 21st century with bloated bureaucracy that stifles innovation and misallocates scarce resources,” Rubio said in a department-wide email obtained by The AP.

Plans include consolidating 734 bureaus and offices to 602 as well as transitioning 137 offices “to another location within the Department to increase efficiency,” according to a fact sheet obtained by The AP.

Wall Street rallies and recovers all of Monday’s slide as the dollar and US bond market steady

U.S. stocks are rallying Tuesday after companies reported fatter profits than expected, and other U.S. investments are also steadying a day after falling sharply on worries about President Donald Trump’s trade war and his attacks on the head of the .

The S&P 500 was 2.7% higher in afternoon trading and on track to recover most of Monday’s drop. The Jones Average was up 765 points, or 2%, as of 10:45 a.m. Eastern time, and the Nasdaq composite was 2.2% higher. Every major index recovered all of their losses from sharp drops on Monday.

The value of the U.S. dollar also stabilized after sliding against the euro and other competitors, while Treasury yields held steadier. Sharp, unusual moves in those markets have recently raised worries that Trump’s policies are making investors more skeptical that U.S. investments still deserve their reputations as the world’s safest.

Colorado fights Trump administration bid to help imprisoned loyalist

Colorado Attorney General Phil Weiser accused the Justice Department of wielding “political power” to give unprecedented help to a former county election clerk who was convicted of letting Trump supporters access election equipment after his 2020 defeat.

Trump administration prosecutors are trying to intervene in the case of Tina Peters, who wants to be released from prison while she appeals her conviction and nine-year sentence. A hearing is scheduled for Tuesday afternoon in federal court in Denver.

Peters’ case is among those the government has said it is reviewing for “abuses of the criminal justice process.” Weiser’s office said the Justice Department has not given any good reason why it should intervene.

“Tina Peters was not prosecuted because of any political pressure; she was prosecuted because she broke the law,” lawyers from Weiser’s office said in a filing.

A state judge sentenced Peters in October to nine years.

Trump has always had a high tolerance for chaos

He’s shunned traditional policy deliberations to entertain divergent opinions and viewing unpredictability as a negotiating tool. He’s spent years fostering a competitive atmosphere among his staff, who are often chosen for their devotion and penchant for aggression.

There’s a risk for more turmoil in the months ahead, as Trump presses forward with a dramatic overhaul of the federal bureaucracy, international trade, foreign policy and more.

John Bolton, Trump’s first-term national security adviser who later wrote a tell-all book about the president’s inner circle, said the drama reflects the lack of consistent ideology and the inexperience of many administration officials.

“The only thing they have in common is the belief that they should show personal fealty to Trump,” Bolton said. “That got them the job. That may in fact keep them in the job. But it shows how fundamentally unserious they are.”

DC weighs layoffs and other cuts as House leaves capital city in budget limbo

Mayor Muriel Bowser and the D.C. Council are scrambling to address a financial crisis created when the Republican-controlled House of Representatives recessed without voting on a fix to a city budget hole.

To address it, Bowser’s government has ordered a spending freeze on new hires, promotions, bonuses and contracts. An overtime freeze starts Sunday. And she expects to receive a detailed plan for potential layoffs and furloughs by week’s end.

Bowser also has invoked a 2009 law allowing the city to increase spending by 6%. That shrinks the shortfall to $410 million, instead of $1.1 billion. She’s walking a public tightrope, balancing elected responsibilities and demands of the president and Congress as some rekindle calls for D.C. statehood.

Trump speaks with the Israeli prime minister

Trump said his conversation with Benjamin Netanyahu on Tuesday touched on Iran, trade and other subjects, and he found agreement with the foreign leader.

The Republican president said in a post on Truth Social that “The call went very well — We are on the same side of every issue.”

Trump endorses two GOP candidates as they compete for Arizona governor

Trump already made his Republican primary pick — developer Karrin Taylor Robson. She’s been trying to eliminate any daylight between herself and the president, touting Trump’s endorsement and eagerly embracing him and his policies.

Now Trump says he’s also endorsing her rival, U.S. Rep. Andy Biggs, who formerly chaired the House’s hard-right Freedom Caucus and was president of the Arizona Senate. Biggs has long been a close Trump ally and supported his stolen election claims.

“When Andy Biggs decided to run for Governor, quite unexpectedly, I had a problem — Two fantastic candidates, two terrific people, two wonderful champions, and it is therefore my Great Honor TO GIVE MY COMPLETE AND TOTAL ENDORSEMENT TO BOTH,” Trump said Monday in a post on Truth Social.

The GOP primary winner will face likely face Gov. Katie Hobbs, who has no serious Democratic challenger.

Roche announces $50B investment in US over next 5 years

The Swiss pharmaceuticals powerhouse announced Tuesday that the investment will create 12,000 jobs.

The Basel-based company envisions high-tech research and development sites and new manufacturing facilities in California, Indiana, Massachusetts and Pennsylvania.

Trump has urged foreign businesses to invest more in the United States, saying his sweeping  are meant to reduce the U.S. trade deficit in sales of goods.

Roche spokesperson Rebekka Schnell said in an e-mail that the company isn’t specifying how much of the $50 billion was announced for the first time on Tuesday, and that some was already being spent or planned.

Supreme Court hears religious rights dispute over LGBTQ books in schools

The U.S. Supreme Court is hearing arguments over the religious rights of parents in Maryland to remove their children from elementary school classes that use storybooks with LGBTQ characters.

Tuesday’s case is the latest dispute involving religion to come before justices who have repeatedly endorsed claims of religious discrimination in recent years.

The Montgomery County public schools introduced the storybooks to better reflect the district’s diverse population. Some parents sued after the district stopped allowing them to pull their kids from the book lessons.

Some GOP states are targeting driver’s licenses issued to immigrants illegally in the US

As Trump cracks down on illegal immigration, Republican legislators lawmakers are pushing new state laws targeting people lacking legal status to live in the U.S. Nineteen other states and Washington, D.C., issue driver’s licenses regardless of whether residents can prove their legal presence.

In Florida, motorists with special out-of-state driver’s licenses issued to those in the U.S. illegally are not welcome to drive. Wyoming’s governor enacted a comparable ban this year. And Tennessee’s governor said he will sign similar legislation sent to his desk.

On May 7, the U.S. will start enforcing national standards for state driver’s licenses. Licenses compliant with the REAL ID Act are marked with a star and require applicants to provide a Social Security number and proof of U.S. citizenship or legal residency.

Mahmoud Khalil’s wife gave birth without him after ICE denied his plea for temporary release

Khalil, a Columbia University activist held in a detention center in Jena, Louisiana, requested a two-week furlough on Sunday morning, noting that his wife, Dr. Noor Abdalla, had gone into labor eight days earlier than expected. Their child was born Monday in New York, according to emails shared with The Associated Press.

His lawyers had said he would be “open to any combination of conditions” to allow the temporary release, but an ICE official promptly wrote back denying the request.

“My son and I should not be navigating his first days on earth without Mahmoud,” she added. “ICE and the Trump administration have stolen these precious moments from our family in an attempt to silence Mahmoud’s support for Palestinian freedom.”

A message seeking comment was left with ICE officials.

Vance calls for greater ties with India, hails progress on trade talks

The U.S. vice president talked up an expected bilateral trade deal with India by calling Tuesday for enhanced engagement. He said India should buy more U.S. defense equipment and energy and allow Washington greater access to its market.

Vance said he and Prime Minister Narendra Modi had finalized the terms of reference for the trade negotiation, a vital step towards setting the road map for a final agreement aimed at more than doubling bilateral trade to $500 billion by 2030.

“I believe there is much that India and America can accomplish together,” Vance said in the western city of Jaipur, where and his wife Usha and their three children were sightseeing during their four-day visit to India.

US, global economic outlook worsens in response to Trump’s tariffs, says

The International Monetary Fund said Tuesday that due to uncertainty over Trump’s plans, the global economy will grow just 2.8% this year, down from its 3.3% forecast in January. U.S. economic growth will come in at just 1.8% this year, down sharply from its previous forecast of 2.7% and a full percentage point below its 2024 expansion.

The IMF’s World Economic Outlook raised the odds of a U.S. recession this year from 25% to 37%. Economists at JPMorgan say the chances of a U.S. recession are now 60%.

“We are entering a new era,” chief IMF economist Pierre-Olivier Gourinchas said. “This global economic system that has operated for the last eighty years is being reset.”

Defense secretary again denies sharing classified info despite reports that operational details were pulled from secure military comms

Hegseth doubled down during a Tuesday morning Fox and Friends interview, insisting that the information on airstrike launches and bomb drop times that he shared with his wife and brother and dozens of others in two separate Signal chats was not classified.

Hegseth didn’t deny the existence of a separate chat, instead attacking the media and his former staff, which he accused of leaking information about the chats.

His repeat denial comes as NBC News reported Tuesday that the information Hegseth posted came directly from secure communications from the head of U.S. Central Command, Gen. Erik Kurilla.

The Pentagon’s inspector general is investigating the chats.

Hegseth says he’s never doubted his decision to become defense secretary

“Oh, not for a minute,” Hegseth said Tuesday on Fox News Channel’s “Fox & Friends.”

“I haven’t blinked, and I won’t blink because this job is too big and too important for the American people, and I’m grateful for every opportunity the president’s given,” Hegseth said.

Hegseth had a rocky road to confirmation and is under investigation by the Defense Department’s acting inspector general for allegedly sharing classified information over the Signal messaging app and with people outside of the military, like his wife. Close advisers recently were dismissed from top roles at the Pentagon, leading to questions about Hegseth’s leadership and viability. Trump has dismissed the allegations.

Wall Street opens slightly higher amid skepticism about the strength and safety of US investments

President Donald Trump’s trade war and his attacks on the Federal Reserve Chairman Jerome Powell have sent markets sharply lower.

Futures for the S&P 500, the Dow Jones Industrial Average and Nasdaq rose less than 1% before the bell, far from recovering Monday’s loss of more than 2% as Trump stepped up his public criticism of Powell.

Trump has been demanding that the central bank lower its key interest rate to boost the economy. Trump called Powell “a major loser” and declared that the central bank no longer needs to keep interest rates elevated to suppress inflation. The has resisted lowering rates quickly, which could reignite inflation after it soared to more than 9% during the COVID-19 pandemic.

Any attempt to unseat Powell would likely set off a crisis in global financial markets.

As controversies pile up, Trump allies increasingly turn on one another

The infighting and backstabbing that plagued Trump’s first term have returned as a threat to his second, with deepening fissures over trade, national security and questions of personal loyalty.

The latest turmoil threatens to engulf the Pentagon, where Defense Secretary Pete Hegseth has pushed out top advisers and faces fresh controversy over sharing sensitive information about airstrikes in Yemen outside of classified channels. A former Pentagon spokesperson who was ousted last week wrote in Politico that Trump should fire Hegseth for presiding over a “full-blown meltdown.”

The interpersonal drama is not — at least yet — a dominant plot line of Trump’s return to the White House. But its reemergence after a period of relative discipline in his ranks reflects a turbulent management style that has been suppressed or papered over, not reformed.

Trump says he’ll give commencement addresses at West Point and the University of Alabama

Trump called the institutions “two really GREAT places” as he announced his upcoming schedule in a social media post.

It’s tradition for the commander in chief to speak at one of the military service academies and West Point’s commencement is May 24.

Alabama’s website says commencement ceremonies are May 2-4.

Vance and Modi meet in New Delhi to discuss trade deal and avoid US tariffs

Vance held talks with Indian Prime Minister Narendra Modi on Monday as New Delhi looks to avoid American tariffs, negotiate a bilateral trade deal with Washington and strengthen ties with the Trump administration.

Vance, who is on a largely personal four-day visit to India, met with Modi at his residence in New Delhi and the two leaders “reviewed and positively assessed the progress in various areas of bilateral cooperation,” Modi’s office said in a statement. They also “welcomed the significant progress” in the negotiations of an expected trade deal between the two countries, the statement said.

The White House, in a statement, said that Vance and Modi set the terms for ongoing talks, “laying down a roadmap for further discussions.” It’s a sign that talks are moving forward but remain far from finalized, though Trump administration officials also spoke with their counterparts from India in a sign of the high level of engagement.

The Trump administration has portrayed its strategy of tariffs as forcing negotiations that could limit the reach and influence of China, the world’s dominant manufacturer.

Harvard sues Trump administration to stop the freeze of more than $2 billion in grants

Harvard University announced Monday that it has filed suit to halt a federal freeze on more than $2.2 billion in grants after the institution said it would defy the Trump administration’s demands to limit activism on campus.

In an April 11 letter to Harvard, the Trump administration had called for broad government and leadership reforms at the university and changes to its admissions policies. It also demanded the university audit views of diversity on campus and stop recognizing some student clubs. The administration has argued that universities allowed antisemitism to go unchecked at campus protests last year against Israel’s war in Gaza.

Harvard President Alan Garber said the university would not bend to the demands. Hours later, the government froze billions of dollars in federal funding.

Harvard’s suit called the funding freeze “arbitrary and capricious,” saying it violated its First Amendment rights and the statutory provisions of Title VI of the Civil Rights Act.

Within hours, the White House lashed back

 

Notes: Eds: UPDATES: with new items

Electra raises $115M to build ultra-short aircraft

Manassas-based startup .aero announced Monday it has secured $115 million in Series B funding to enter pre-production and certification phase of its EL9 model, a hybrid ultra-short that can take off and land in 150 feet.

The round was led by Prysm Capital, a New Jersey-headquartered growth equity firm. Prysm’s co-founder and managing partner, Jay Park, has joined Electra’s board, according to a news release.

The EL9 Ultra Short, which can carry nine passengers, uses electric motors to blow air over the wing and large flaps of the aircraft and a hybrid-electric propulsion system to allow it to land in tight spaces and serve communities lacking traditional aviation infrastructure.

Operating quietly like an electric vehicle, the EL9 also features in-flight battery recharging, which eliminates the need for ground charging stations. The EL9 offers up to 3,000 pounds of payload and a range of up to 1,100 nautical miles.

Electra has secured more than 2,200 preorders for the EL9, valued at over $10 billion, according to the release.

In 2023, Electra won a Strategic Funding Increase award from the  that secures up to $85 million for development of a prototype electric short takeoff and landing aircraft.

Electra’s strategic investors include Ventures and . Founded in 2020, the company has about 80 employees.

Largest industrial building in Richmond market holds groundbreaking

A massive 846,260 square-foot spec facility under in southern is expected to be ready for delivery before the end of the year.

-based real estate developer began construction on the building at 1640 Ashton Park Drive during the first quarter of this year and hosted a groundbreaking ceremony last week. According to a company spokesperson, it is the company’s first Virginia project and the largest industrial building available in the Richmond market area.

PNK commenced the project as a speculative development, the spokesperson said, adding that the company can easily modify the building during or after construction to meet an eventual end user’s requirements. While the project doesn’t yet have a planned tenant, the spokesperson said, the project can be used by multiple occupiers or by a single tenant.

The site includes lighting, docks and office space. It will also include almost 570 trailer spaces, and have a 40-foot ceiling height.

The project cost $80 million, including the land acquisition. The site sits on an 86-acre property PNK purchased for about $12 million in October from limited liability company Emerson Ventures, according to online county property records, which list the site as 1653 Ashton Park Drive.

The spokesperson said the building is expected to be completed before the end of the year, likely in the late third quarter early fourth quarter. She added that PNK is interested in building more projects in Virginia.

Big Tech’s ‘Magnificent Seven’ heads into earnings season reeling from Trump turbulence

SAN FRANCISCO (AP) — As kicks off its quarterly earnings season this week, the industry’s bellwether companies have been thrust into a cauldron of uncertainty and turmoil that they didn’t anticipate when re-entered the White House nearly 100 days ago.

Since President Trump’s Jan. 20 inauguration, Big have been on a see-sawing ride that has eviscerated trillions of dollars in shareholder wealth amid an onslaught of tariffs and other potentially detrimental actions.

It’s the polar opposite of what Apple CEO Tim Cook, CEO Elon Musk, CEO Sundar Pichai, Facebook founder Mark Zuckerberg and Amazon founder Jeff Bezos hoped for when they assembled behind Trump as he was sworn in.

That display of unity reflected a belief that Trump’s second stint in the White House would be a refreshing change from the heavy-handed regulation of President Joe ‘s administration while unleashing even more lucrative opportunities in artificial intelligence and deal-making.

But the Trump administration’s policies so far have vexed Big Tech’s “Magnificent Seven” companies — a group consisting of Apple, Microsoft, , Amazon, Tesla, Google parent Alphabet and Facebook parent Platforms. Since Trump’s inauguration, the Magnificent Seven’s combined market value has plunged by $4.2 trillion, or 24%, through Monday.

The financial damage was even more severe a few days after Trump’s April 2 unveiling of sweeping reciprocal tariffs that would have exacted a heavy toll on Big Tech’s supply chains in China and other key markets around the globe. A temporary freeze on the majority of the most punitive tariffs and an exemption from most of the fees on electronics coming in from China has provided some relief, but Trump has made it clear the reprieve may be short-lived.

That has left the specter of Trump’s ongoing hanging over Big Tech, whose influence extends around the world.

“The mass confusion created by this constant news flow out of the White House is dizzying for the industry and investors and creating massive uncertainty and chaos for companies trying to plan their supply chain, inventory, and demand,” Wedbush Securities analyst Dan Ives said.

Besides the upheaval triggered by Trump’s tariffs, his administration is also in the midst of trying to prove regulators’ allegations that Meta has been running an illegal monopoly in social networking, and working to persuade a federal judge to break up Google after its search engine last year was found to be illegally abusing its power. Trump also has given no indication of abandoning filed by the Biden administration that could hobble Apple and Amazon.

And Nvidia absorbed a significant setback last week when the Trump administration banned it from selling one of its popular AI chips to China, prompting the company to record a $5.5 billion charge to account for the stockpile of processors that it intended to export to that country.

Tech CEOs will get a chance to discuss the fallout from the trade war and other challenges still ahead during analyst conference calls that will be held as part of their companies’ financial reports for the January-March quarter.

The ritual will kick off Tuesday when Tesla is scheduled to release its full financial report after already revealing that its first-quarter car sales dropped by 13% from the same time last year.

The decline occurred against a backdrop of vandalism, widespread protests and calls for a consumer boycott amid a backlash to Musk’s high-profile role in the White House overseeing a cost-cutting purge of U.S. government agencies.

After Musk discusses his strategy for reversing a 47% decrease in Tesla’s market value since he joined Trump in the White House, Google parent Alphabet Inc. is scheduled to announce its results on Thursday. Then four of the Magnificent Seven will get their turn next week: ; Meta and Microsoft on April 30; and Amazon and Apple on May 1.

Nvidia, which operates on a fiscal year ending in January, is scheduled to wrap things up on May 28 with the release of its quarterly results.

—-

This story corrects the date that Amazon will release its quarterly earnings to May 1.

Volvo to lay off 250-350 workers in Pulaski

Volvo plans to lay off 250 to 350 workers at its facility in June, according to John Mies, a spokesperson for Group North America.

Between 300 and 450 employees will also be laid off at the company’s Mack Lehigh Valley Operations in Pennsylvania and at its Volvo Group Powertrain Operations in Maryland.

“Heavy-duty truck orders continue to be negatively affected by market uncertainty about freight rates and demand, possible regulatory changes, and the impact of ,” Mies said in a statement.

This is a second wave of for the facility, which is located in . In February, Volvo announced layoffs of between 250 and 350 employees, which, due to attrition, ended up impacting about 180 workers.

“We currently expect that the total impact at … [the Pulaski ] will unfortunately be about 430 to 530 people,” Mies said.

The 2.3-million-square-foot assembly plant in Pulaski County is the largest Volvo truck facility in the world. It produces all sold in North America and currently employs about 3,400 workers, making it one of the top employers in the New River Valley.

In 2019, Volvo announced plans for a six-year, $400 million and upgrade of the Dublin plant.

Deliveries of Volvo’s trucks declined by 11% in the fourth quarter of 2024.

Volvo announced in 2024 that it would invest $700 million to build a heavy-duty truck manufacturing plant in Mexico “to support the growth plans of both Volvo Trucks and Mack Trucks in the U.S. and Canadian markets, and Mack truck sales in Mexico and Latin America.”

Student loans in default to be referred to debt collection, Education Department says

WASHINGTON (AP) — The will begin collection next month on  that are in default, including the garnishing of wages for potentially millions of borrowers, officials said Monday.

Currently, roughly 5.3 million borrowers are in default on their federal student loans.

The  administration ‘s announcement marks an end to a period of leniency that began during the COVID-19 pandemic. No federal student loans have been referred for collection since March 2020, including those in default.

“American taxpayers will no longer be forced to serve as collateral for irresponsible student loan policies,” Education Secretary Linda McMahon said.

Beginning May 5, the department will begin involuntary collection through the Treasury Department’s offset program, which withholds payments from the government — including tax refunds, federal salaries and other benefits — from people with past-due debts to the government. After a 30-day notice, the department will also begin garnishing wages for borrowers in default.

Already, many borrowers have been bracing for obligations coming due.

In 2020, President  paused federal student loan payments and interest accrual as a temporary relief measure for student borrowers. The pause in payments was extended multiple times through 2023, and a final grace period for loan repayments ended in October 2024. That meant tens of millions of Americans had to start making payments again.

Borrowers who don’t make payments for nine months go into default, which is reported on their credit scores and can go to collections.

In addition to the borrowers already in default, around another 4 million are between 91 to 180 days late on their loan payments. Less than 40% of all borrowers are current on their student loans, department officials said.

President Joe oversaw the cancellation of student loans for more than 5 million borrowers. Despite the Supreme Court’s rejection of his signature proposal for broad relief, he waived more than $183.6 billion in student loans through expanded forgiveness programs.

In her statement Monday, McMahon said Biden had gone too far.

“Going forward, the Department of Education, in conjunction with the Department of Treasury, will shepherd the student loan program responsibly and according to the law, which means helping borrowers return to repayment — both for the sake of their own financial health and our nation’s economic outlook,” she said.

___

ODU breaks ground on $25M Barry Art Museum expansion

The Barry at in is undergoing a massive $25 million that will double its gallery space.

last week broke ground on the project, which will add a 25,200-square-foot, three-story wing that includes a multiuse event space, a new media video gallery showcasing multimedia artworks, a community gallery dedicated for local artists and community exhibitions, an educational laboratory and expanded art storage. More than 200 people gathered outside the museum Wednesday for the groundbreaking ceremony.

The museum, which sits at the intersection of 43rd Street and Hampton Boulevard, opened in 2018. It was made possible due to donations from philanthropists Carolyn and Richard Barry that were valued at more than $35 million.

“Never could we have imagined then how our modest vision for an intimate campus art museum would grow into what is now a vibrant cultural and community hub,” said museum co-founder Carolyn Barry in a statement.

-based firm Saunders + Crouse Architects, which designed the existing facility, is designing the new addition. The museum will close on July 31 for and is expected to reopen in early 2027.

“This expansion will further the museum’s ability to serve as a space of connection and inspiration for all who walk through its doors — whether they are students encountering glass art for the first time, or lifelong learners engaging with new ideas,” said ODU Real Estate Foundation Board of Trustees Chair Lisa Chandler in a statement. “It is a shining example of what’s possible when vision, and partnership come together.”

According to a news release, the impetus for the expansion was a gift from the family of the late Leah and Richard Waitzer of 165 works of 20th-century and contemporary glass sculptures. The Waitzers were prominent philanthropists and art collectors. The added wing will be known as the Waitzer Wing.

Trump renews attack on Federal Reserve Chair Powell

WASHINGTON (AP) — President repeated his attacks Monday against the chair of the , demanding that the central bank lower its key interest rate to boost the .

 called “a major loser” and said that energy and grocery prices are “substantially lower” and “there is virtually No Inflation.” Yet Trump said the economy could slow without rate cuts.

Gas prices have fallen for the past two months, in part because oil costs have dropped on fears of slower growth, but food prices jumped in January and March and overall inflation remains above the ‘s 2% target.

Trump’s comments drove the stock market and the dollar lower as investors in the U.S. and overseas grow increasingly wary about the economic standing of the U.S. On Friday, a top White House adviser said the administration is studying whether it can fire Powell, a move that would undermine the Fed’s independence and likely send shock waves through global financial markets.

The , which fell immediately at the opening bell Monday, tumbled further after Trump’s post, with dropping by more than 1,000 points and the broad S&P 500 stock index falling nearly 3% in mid-day trading. The dollar fell to a three-year low.

The Federal Reserve was established as an independent agency and most economists think central banks that are free of political interference do a better job at keeping inflation in check. Otherwise, it would be harder for the Fed to take unpopular steps to keep prices down, such as raising interest rates.

The interest rate on 10-year Treasuries has been rising as Trump rolled out aggressive tariff policies against trading partners and continues to attack Powell and the Federal Reserve. The interest rate ticked higher again on Monday to 4.37%.

The dollar losing value is unusual when stock prices fall and Treasury yields rise because investors typically buy U.S. government bonds during market turmoil, driving down the yield. Instead, investors appear to be avoiding U.S. markets due to the perception of rising risk.

Trump also criticized Powell for being “too late” to move on interest rates. Powell and other Fed officials have long acknowledged that they waited too long to raise rates when inflation was first ignited in 2021.

But right now, Powell has underscored that the Fed faces a potentially “challenging scenario.” Trump’s could worsen inflation, and the Fed would typically respond to rising prices by keeping its rate elevated, or even raising it. Yet the economy could also slow because of the duties, which the Fed would normally seek to counter with rate cuts.

“Our tool only does one of those two things at the same time,” Powell said last week.

As a result, Powell has underscored that the Fed will stay on the sidelines as it waits to see how the tariff policies play out.

Trump lashed out at Powell on Friday and said he could fire him if he wanted, though it would likely touch off a legal battle that could go to the Supreme Court. Powell has said the president lacks the authority to fire him and has made clear he won’t step down until his term ends in May 2026.

Kevin Hassett, director of the White House’s National Economic Council, when asked Friday whether firing Powell is an option, said that Trump “and his team will continue to study that matter.” Hassett also accused Powell of acting politically.

Trump made a similar claim in his Truth Social post, accusing the Fed chair of cutting rates last year “in order to help Sleepy Joe , later Kamala, get elected.” The Fed reduced its key rate three times in late 2024 as inflation cooled and out of concern that hiring was also slowing, though it later rebounded.

On Sunday, Republican Sen. John Kennedy from Louisiana defended Powell on NBC’s “Meet the Press” and added that, “I don’t think the president, any president, has the right to remove the Federal Reserve chairman.”

“The Federal Reserve ought to be independent,” he said.

Also Sunday, Austan Goolsbee, president of the Federal Reserve’s Chicago branch, said on CBS’ “Face the Nation” that undermining the Federal Reserve’s independence could lead to higher inflation, slower economic growth, and less hiring.

And William English, an economist at the Yale School of Management and a former senior Fed staffer, said Trump’s attacks on the Fed aren’t “going to make the American people better off over time.”

“They’ll end up in all likelihood with higher inflation, and that is not something that people want,” he said.

60,000 Americans to lose their rental assistance and risk eviction unless Congress acts

Moments after Daniris Espinal walked into her new apartment in Brooklyn, she prayed. In ensuing nights, she would awaken and touch the walls for reassurance — finding in them a relief that turned to tears over her morning coffee.

Those walls were possible through a federal program that pays rent for some 60,000 families and individuals fleeing homelessness or . Espinal was fleeing both.

But the program, Emergency , is running out of money — and quickly.

Funding is expected to be used up by the end of next year, according to a letter from the and obtained by The Associated Press. That would leave tens of thousands across the country scrambling to pay their rent.

It would be among the largest one-time losses of in the U.S., analysts say, and the ensuing evictions could churn these people — after several years of rebuilding their lives — back onto the street or back into abusive relationships.

“To have it stop would completely upend all the progress that they’ve made,” said Sonya Acosta, policy analyst at the Center on Budget and Policy Priorities, which researches housing assistance.

“And then you multiply that by 59,000 households,” she said.

The program’s future rests with Congress

The program, launched in 2021 by then-President Joe as part of the pandemic-era American Rescue Plan Act, was allocated $5 billion to help pull people out of homelessness, domestic violence and human trafficking.

People from San Francisco to Dallas to Tallahassee, Florida, were enrolled — among them children, seniors and veterans — with the expectation that funding would last until the end of the decade.

But with the ballooning cost of rent, that $5 billion will end far faster.

Last month, sent letters to groups dispersing the money, advising them to “manage your EHV program with the expectation that no additional funding from HUD will be forthcoming.”

The program’s future rests with Congress, which could decide to add money as it crafts the federal budget. But it’s a relatively expensive prospect at a time when Republicans, who control Congress, are dead set on cutting federal spending to afford tax cuts.

Democratic Rep. Maxine Waters, who championed the program four years ago, is pushing for another $8 billion infusion.

But the organizations lobbying Republican and Democratic lawmakers to re-up the funding told the AP they aren’t optimistic. Four GOP lawmakers who oversee the budget negotiations did not respond to AP requests for comment.

“We’ve been told it’s very much going to be an uphill fight,” said Kim Johnson, the public policy manager at the National Low Income Housing Coalition.

Recipients face uncertainty after years of stability

Espinal and her two daughters, aged 4 and 19, are living on one of those vouchers in a three-bedroom apartment with an over $3,000 monthly rent — an amount extremely difficult to cover without the voucher.

Four years ago, Espinal fought her way out of a marriage where her husband controlled her decisions, from seeing her family and friends to leaving the apartment to go shopping.

When she spoke up, her husband said she was wrong, or in the wrong or crazy.

Isolated and in the haze of postpartum depression, she didn’t know what to believe. “Every day, little by little, I started to feel not like myself,” she said. “It felt like my mind wasn’t mine.”

When notices arrived in March 2021 seeking about $12,000 in back rent, it was a shock. Espinal had quit her job at her husband’s urging and he had promised to cover family expenses.

Police reports documenting her husband’s bursts of anger were enough for a judge to give her custody of their daughter in 2022, Espinal said.

But her future was precarious: She was alone, owed thousands of dollars in back rent and had no income to pay it or support her newborn and teenage daughters.

Financial aid to prevent evictions during the pandemic kept Espinal afloat, paying her back rent and keeping the family out of shelters. But it had an expiration date.

Around that time, the Emergency Housing Vouchers program was rolled out, targeting people in Espinal’s situation.

A “leading cause of family homelessness is domestic violence” in City, said Gina Cappuccitti, director of housing access and stability services at New Destiny Housing, a nonprofit that has connected 700 domestic violence survivors to the voucher program.

Espinal was one of those 700, and moved into her Brooklyn apartment in 2023.

The relief went beyond finding a secure place to live, she said. “I gained my worth, my sense of peace, and I was able to rebuild my identity.”

Now, she said, she’s putting aside money in case of the worst. Because, “that’s my fear, losing control of everything that I’ve worked so hard for.”

Norfolk State breaks ground on $118M science building

Norfolk State University on Friday broke ground on a $118 million building.

The new 131,376-square-foot facility, which is being built on the northwest side of the ‘s main campus, will replace the Roy A. Woods Science Building. Once complete, it will house teaching and research labs, classrooms, a planetarium, a greenhouse and student-centered collaboration spaces.

The new building will house the university’s biology, chemistry and physics departments as well as the Dozoretz National Institute for Mathematics and Applied Sciences. State University President Javaune Adams-Gaston said in a statement the building will be a place where students can “discover, innovate and be inspired.”

The building is expected to be completed in the fall of 2027. Norfolk-based is the architect of record, and architectural firm SmithGroup is working with WPA as consultants. -based S.B. Ballard is the builder for the project.

“This project puts scientific research and education on display in an environment that is inclusive, interactive and energizing,” Work Program Architects CEO Mel Price, principal-in-charge of the project, said in a statement. “We’re honored to be part of such a visionary and student-focused effort.”

“This building will showcase science with its transformative architecture, thereby inspiring students to believe and achieve their goals,” said Michael Keeve, the university’s dean of College of Science, Engineering & Technology in a statement. “It will encourage and empower collaborations between faculty, students, and the community to build a brighter future.”

A university spokesperson says a decision has not been made about what will be done with the old science building.