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House GOP passes Trump tax bill despite deficit fears

SUMMARY:

  • approve multitrillion-dollar tax bill
  • Speaker unites GOP behind Trump’s agenda
  • Trump pressures holdouts with last-minute concessions
  • CBO warns bill adds $3.8 trillion to

WASHINGTON (AP) — House Republicans stayed up all night to pass their multitrillion-dollar package, with Speaker Mike Johnson defying the skeptics and unifying his ranks to muscle ‘s priority bill to approval Thursday.

With last-minute concessions and stark warnings from Trump, the Republican holdouts largely dropped their opposition to salvage the “One Big Beautiful Bill” that’s central to the GOP agenda. The House launched debate before midnight and by dawn the vote was called, 215-214, with Democrats staunchly opposed. It next goes to the Senate, with long negotiations ahead.

“To put it simply, this bill gets Americans back to winning again,” said Johnson, R-La.

The outcome caps an intense time on , with days of private negotiations and public committee hearings, many happening back-to-back, around-the-clock. Republicans insisted their sprawling 1,000-page-plus package was what voters sent them to Congress — and Trump to the White House — to accomplish. They believe it will be “rocket fuel,” as one put it during debate, for the uneasy U.S. economy.

Virginia Republican U.S. Reps. Jennifer Kiggans and Rob Wittman voted to pass the budget after previously saying that they would not support the budget bill if it made cuts to Medicaid, along with 10 other GOP Congress members. Kiggans, who represents Suffolk, Chesapeake, Virginia Beach and parts of the Eastern Shore, is in one of the nation’s most competitive congressional districts.

Trump himself demanded action, visiting House Republicans at Tuesday’s conference meeting and hosting GOP leaders and the holdouts for a lengthy session Wednesday at the White House. Before the vote, the administration warned in a pointed statement that failure “would be the ultimate betrayal.”

After the legislation’s passage, Trump posted on social media: “Thank you to every Republican who voted YES on this Historic Bill! Now, it’s time for our friends in the United States Senate to get to work.”

The Senate hopes to wrap up its version by the Fourth of July holiday.

Central to the package is the GOP’s commitment to extending some $4.5 trillion in tax breaks they engineered during Trump’s first term in 2017, while temporarily adding new ones he campaigned on during his 2024 campaign, including no taxes on tips, overtime pay, car loan interest and others.

To make up for some of the lost tax revenue, the Republicans focused on changes to Medicaid and the food stamps program, largely by imposing work requirements on many of those receiving benefits. There’s also a massive rollback of green energy tax breaks from the Biden-era Inflation Reduction Act.

Additionally, the package tacks on $350 billion in new spending, with about $150 billion going to the , including for the president’s new “ Golden Dome” defense shield, and the rest for Trump’s mass deportation and border security agenda.

All told, the nonpartisan estimates 8.6 million fewer people would have health care coverage and 3 million less people a month would have SNAP food stamps benefits with the proposed changes.

The CBO said the tax provisions would increase federal deficits by $3.8 trillion over the decade, while the changes to Medicaid, food stamps and other services would tally $1 trillion in reduced spending. The lowest-income households in the U.S. would see their resources drop, while the highest ones would see a boost, it said.

House Democratic leader Hakeem Jeffries of New York read letters from Americans describing the way the program cuts would hurt them. “This is one big ugly bill,” he said.

As the minority, without the votes to stop Trump’s package, Democrats instead offered up impassioned speeches and procedural moves to stall its advance. As soon as the House floor reopened for debate, the Democrats forced a vote to adjourn. It failed.

In “the dark of night they want to pass this GOP tax scam,” said Rep. Pete Aguilar, D-Calif.

Other Democrats called it a “big, bad bill” or a “big, broken promise.”

Pulling the package together before his Memorial Day deadline has been an enormous political lift for Johnson, with few votes to spare from his slim GOP majority whose rank-and-file Republicans have conflicting priorities of their own.

Conservatives, particularly from the House Freedom Caucus, held out for steeper spending cuts to defray costs piling onto the nation’s $36 trillion debt.

At the same time, more moderate and centrist GOP lawmakers were wary of the changes to Medicaid that could result in lost health care for their constituents. And some worried the phaseout of the renewable energy tax breaks will impede businesses using them to invest in green energy projects in many states.

One big problem had been the costly deal with GOP lawmakers from New York and other high-tax states to quadruple the $10,000 deduction for state and local taxes, called SALT, to $40,000 for incomes up to $500,000, which was included in the final product.

For every faction Johnson tried to satisfy, another would roar in opposition.

Late in the night, GOP leaders unveiled a 42-page amendment with a number of revisions.

The changes included speedier implementation of the Medicaid work requirements, which will begin in December 2026, rather than January 2029, and a faster roll back of the production tax credits for clean electricity projects, both sought by the conservatives.

Also tucked into the final version were some unexpected additions — including a $12 billion fund for the Department of Homeland Security to reimburse states that help federal officials with deportations and border security.

And in a nod to Trump’s influence, the Republicans renamed a proposed new children’s savings program after the president, changing it from MAGA accounts — money account for growth and advancement — to simply “Trump” accounts.

Rep. Erin Houchin, R-Ind., said Americans shouldn’t believe the dire predictions from Democrats about the impact of the bill. “We can unlock the ‘Golden Age’ of America,” she said, echoing the president’s own words.

By early morning hours, the chief holdouts appeared to be falling in line. Rep. Ralph Norman, R-S.C., said they “got some improvements.”

But two Republicans voted against the package, including Rep. Thomas Massie of Kentucky, a deficit watcher who had been publicly criticized by Trump, remained unmoved. “This bill is a debt bomb ticking,” he warned.

And Rep. Andy Harris, the chairman of the Freedom Caucus who wanted more time, voted present. Some others did not vote.

Final analysis of the overall package’s costs and economic impacts are still being assessed.

Along with extending existing tax breaks, it would increase the standard income tax deduction, to $32,000 for joint filers, and boost the child tax credit to $2,500. There would be an enhanced deduction, of $4,000, for older adults of certain income levels, to help defray taxes on Social Security income.

To cut spending, those seeking Medicaid health care, who are able-bodied adults without dependents, would need to fulfill 80 hours a month on a job or in other community activities.

Similarly, to receive food stamps through SNAP, those up to age 64, rather than 54, who are able-bodied and without dependents, would need to meet the 80 hours a month work or community engagement requirements. Additionally, some parents of children older than 7 years old would need to fulfill the work requirements.

Republicans said they want to root out waste, fraud and abuse in the federal programs.

Wall Street dips as GOP spending bill shakes markets

SUMMARY:

 

NEW YORK (AP) — Stocks are drifting on Thursday following a rocky week so far because of worries coming out of the bond market about the U.S. government’s debt.

The S&P 500 rose 0.3% in afternoon trading, coming off a sharp loss that has it potentially heading for its worst week in the last seven. The Industrial Average was up 145 points, or 0.4%, as of 1:50 p.m. Eastern time, and the Nasdaq composite was 0.7% higher.

Technology stocks with outsized values that tend to sway the market up or down were doing most of the heavy lifting for the broader market. Google’s parent Alphabet jumped 2.4% and Nvidia rose 1.3%.

The choppy trading this week and sharp decline for stocks on Wednesday follows several weeks of mostly gains that have brought the S&P 500 back within 5% of its all-time high.

“We’ve had a good bounce here, but the market is looking for some excuse to take some money off the table,” said Scott Wren, senior global market strategist at Wells Fargo Investment Institute.

Treasury yields were holding a bit steadier in the bond market, which has been the epicenter of Wall Street’s action this week, but only after several sharp swings in the morning. Yields have been on the rise in part because of worries about the U.S. government’s spiraling debt.

The House of Representatives approved a bill early Thursday that would cut taxes and could add trillions of dollars to the U.S. debt.

Besides making it more expensive for the U.S. government to borrow to pay its bills, higher Treasury yields can also filter into the rest of the economy and make it tougher for U.S. households and businesses to get their own loans. Higher yields also discourage investors from paying high prices for stocks and other investments.

The yield on the 10-year Treasury climbed as high as 4.63% before the U.S. opened for trading, before receding to 4.55%. It stood at 4.58% late Wednesday and was as low as 4.01% early last month. The two-year yield, which more closely tracks expectations for action by the Federal Reserve, slipped to 4.00% from 4.02% late Wednesday.

The House’s multitrillion-dollar spending bill, which aims to extend some $4.5 trillion in tax breaks from ‘s first term while adding others, is expected to undergo some changes when it gets to the Senate for a vote.

The legislation also includes a speedier rollback of production tax credits for clean electricity projects, which sent shares of solar companies tumbling. Sunrun dropped 38.2%, Enphase Energy fell 19.7% and First Solar slid 3.9%.

Health care stocks were also falling early Thursday after the Centers for Medicare & Medicaid Services said it was immediately expanding its auditing of Medicare Advantage plans. UnitedHealth Group fell 0.9% and Humana was down 5.1%.

Wall Street had several economic updates on Thursday.

The number of Americans filing unemployment claims last week fell slightly. The broader employment market has remained strong, though businesses remain worried about the economic uncertainty amid a .

The market gained ground earlier in trading before pulling back, following a better-than-expected report on manufacturing and services in the U.S. The survey from S&P Global showed growth for both areas in May following a sluggish April.

“Business confidence has improved in May from the worrying slump seen in April, with gloom about prospects for the year ahead lifting somewhat thanks largely to the pause on higher rate ,” said Chris Williamson, chief business economist at S&P Global Market Intelligence.

The report also reflected the impact of the trade war on supply chains, prices and concerns about the economic picture moving forward. New orders from businesses were the big driver for the improvement, but much of that was from businesses trying to get ahead of a potentially hefty round of tariffs that could hit the economy in July.

“Concerns over tariff-related supply shortages and price rises led to the largest accumulation of input inventories recorded since survey data were first available 18 years ago,” Williamson said.

A 90-day pause on some of President Donald Trump’s heftiest tariffs helped give some businesses and consumers some relief. They are already contending with broad tariffs and their impact on prices for a wide range of goods coming from trading partners around the world, including China, Canada and Mexico.

The overall rise in prices charged for goods and services in May was the steepest since August 2022, according to the S&P Global report.

Businesses have been warning investors about higher costs because of tariffs, prompting many to trim or pull financial forecasts. Many of them, including retail giant Walmart, have also warned consumers that they are raising prices on a wide range of goods because of higher import taxes.

In stock markets abroad, indexes fell across Europe and Asia. France’s CAC 40 dropped 0.6%, Hong Kong’s Hang Seng fell 1.2% and South Korea’s Kospi slid 1.2% for some of the sharper losses.

Notes: Eds: UPDATES: trading.

 

Danville’s River District Association CEO resigns

Diana Schwartz is resigning as of ‘s , effective June 5.

“It has been an honor and a privilege to play an important role in moving the downtown and the community forward in the journey towards for the last seven, almost eight, years,” Schwartz said in a statement Wednesday. “I am excited to see what happens in Danville in the future with so much progress that has been made.”

Alyssa Turner, ‘s director of business services, will serve as interim executive director, according to a news release from the downtown revitalization organization. RDA’s board of directors has launched a search for Schwartz’s permanent successor.

Schwartz is taking a sabbatical to travel and spend time with her family and friends, according to Shane Brogden, RDA’s director of promotions and communications. She has not yet shared any professional plans that would follow her sabbatical.

Schwartz joined RDA as executive director in 2017, and her title changed to CEO in March 2023. According to her LinkedIn profile, Schwartz was a community development specialist at the Virginia Department of Housing and Community Development from April 2019 to October 2019, when she returned to RDA. During her tenure, in 2023, RDA received a Great American Main Street Award from Main Street America.

She oversaw the creation of the six-week RDA Dream Launch Bootcamp for entrepreneurs, which partnered with The Advancement Foundation’s The Gauntlet Business Program & Competition in November 2024. RDA still runs an annual pitch competition, RDA Ignite Business Pitch.

Schwartz also secured grant funding through programs like Main Street America’s Vote Your Main Street, including receiving $150,000 in 2018 to renovate two storefronts into a business incubator and a space to celebrate the area’s civil rights history.

Renamed in 2015, the River District Association was formed in 1999 as the Downtown Danville Association to coordinate downtown revitalization efforts. The RDA and the city of Danville achieved accreditation from the Main Street America and Virginia Main Street programs in 2016.

Let us honor Virginia’s military through educational opportunities

SUMMARY:

As a state with one of the highest concentrations of military personnel in the country, Virginia has always prided itself on its deep-rooted support for veterans, active-duty service members, and their families. This is not only a point of pride — it’s a solemn responsibility. On Memorial Day, we rightly honor the men and women who made the ultimate sacrifice for our country. But we must also ask: how are we honoring their legacy?

One meaningful answer lies in how we support their families and the veterans still with us, especially when it comes to affordable access to higher education.

Today, we write to call on our leaders to continue investing in pathways that serve military families, keep them in Virginia, and strengthen Virginia’s economic future. With one of the nation’s top-ranked systems of public colleges, universities, and community colleges, Virginia is uniquely positioned to deliver. As a university president with 36 years of military service, and as a lifelong educator and former General Assembly leader who focused on veterans affairs, this subject is particularly close to our hearts.

The Virginia Military Survivors and Dependents Education Program — or VMSDEP — provides in-state tuition waivers to the spouses and children of service members who were disabled or killed in the line of duty. It is one of the commonwealth’s most important expressions of gratitude and responsibility to military families.

That commitment enjoys overwhelming support from Virginians. According to a statewide higher education survey recently conducted by a bipartisan pair of pollsters, 80% of Virginians believe the state should fully fund the program — ensuring other students and their families aren’t forced to absorb the cost through higher tuition. That support is a powerful endorsement of the program’s value and the principle behind it.

The program is especially important at universities with large populations of military-connected students. Of all Virginia’s public universities, Christopher Newport University has the second-highest percentage of VMSDEP-eligible students and the largest percentage 4-year growth at 588%. The task ahead is to maintain this important benefit, ensuring that it remains strong for future generations.

But support for military-connected students extends well beyond tuition and affordability. That same survey found that 90% believe it is important to help encourage employers to provide paid internships to veterans and their family members — affirming a strong desire to ensure that educational access leads directly to career advancement and long-term economic opportunity here in the commonwealth.

Virginians also strongly support expanding access to other pathways that prepare students — including military-connected learners — for careers with Virginia businesses. Over 90% support state investment in community college efforts to expand high-demand programs, increase access to non-degree certificates, and grow internship and apprenticeship opportunities for working-age adults. These pathways are essential not only for Virginia’s economic competitiveness, but for honoring the varied goals and needs of military personnel and their families transitioning into civilian life.

These findings underscore what many of us already know: Virginians take pride in being a welcoming, supportive state for military families, and they believe higher education plays a central role in that support.

The impact of these efforts goes far beyond individual students. They are a testament to our values. They demonstrate that Virginia doesn’t just honor service with words, but with action — providing educational opportunity and pathways to meaningful careers for those who have sacrificed the most.

As we reflect this Memorial Day, let us reaffirm our commitment to that mission. Let us ensure that Virginia remains a leader in supporting our military-connected populations. Let us continue to invest in their education, their future, and in the enduring promise our Commonwealth has made to them and their families. And let us ensure that Virginia remains the best state in America for military families to learn, earn, and call home.

William G. Kelly is the president of Christopher Newport University and a retired rear admiral in the U.S. Coast Guard. Kirk Cox is the former speaker of the Virginia House of Delegates and currently serves as president of the Virginia Business Higher Education Council.

Amentum wins $91.8M Navy contract

Chantilly-based Services announced last week that it has won a $91.8 million contract from the Naval Surface Warfare Center Dahlgren Division (NSWCDD) to provide services that will help the U.S. protect national security.

Under the contract, Amentum will use advanced technologies, such as model-based systems engineering, to transform Navy systems from a document-centric to a model-centric methodology. Amentum will also provide software engineering expertise about sensor data collection, exploitation, fusion, modeling and concept exploration.

“Amentum is the ideal partner to strengthen the Navy’s Sensor Systems by delivering innovative, adaptable, and cost-effective solutions,” Mark Walter, president of Amentum’s engineering and technology group, said in a statement.

Other components of the job include software design and development, configuration and data management, data science, tool development, technology development and insertion, prototyping and technology demonstrations.

The contract performance will last five-and-a-half years, starting Jan. 16, 2026. Amentum will deliver the project to NSWCDD’s electromagnetic and sensor systems department in Dahlgren and Fredericksburg.

Amentum has more than 53,000 employees in approximately 80 countries across all seven continents. The company was founded as a spinout of AECOM’s Management Services Group in 2020 and moved its headquarters from Germantown, Maryland, to in 2023.

Defense Department accepts Boeing 747 from Qatar for Trump’s use

WASHINGTON (AP) — Defense Secretary has accepted a luxury 747 aircraft from for to use as Air Force One, the said Wednesday, despite ongoing questions about the ethics and legality of taking the expensive gift from a foreign nation.

The Defense Department will “work to ensure proper security measures” on the aircraft to make it safe for use by the president, Pentagon spokesman Sean Parnell said. He added that the plane was accepted “in accordance with all federal rules and regulations.”

Trump has defended the gift, which came up during his recent Middle East trip, as a way to save tax dollars.

“Why should our , and therefore our taxpayers, be forced to pay hundreds of millions of Dollars when they can get it for FREE,” Trump posted on his social media site during the trip.

Others, however, have said Trump’s acceptance of an aircraft that has been called a “palace in the sky” is a violation of the Constitution’s prohibition on foreign gifts. Democrats have been united in outrage, and even some of the Republican president’s GOP allies in Congress have expressed concerns.

They also have noted the need to retrofit the plane to meet security requirements, which would be costly and take time.

“Far from saving money, this unconstitutional action will not only cost our nation its dignity, but it will force taxpayers to waste over 1 billion in taxpayer dollars to overhaul this particular aircraft when we currently have not one, but two fully operational and fully capable Air Force One aircraft,” said Sen. Tammy Duckworth, D-Ill.

She said during a hearing Tuesday that it is a “dangerous course of action” for the U.S. to accept the aircraft from the Qatari ruling family.

Air Force Secretary Troy Meink told senators that Hegseth has ordered the service to start planning how to update it to meet needed standards and acknowledged that the plane will require “significant” modifications.

The Air Force, in a statement, said it is preparing to award a contract to modify a Boeing 747 aircraft, but that any details are classified.

Trump was asked about the move Wednesday while he was meeting in the Oval Office with South African President Cyril Ramaphosa. “They are giving the United States Air Force a jet,” Trump said, bristling at being questioned about the gift by a reporter.

Trump said it was given “not to me, to the United States Air Force, so they could help us out” and noted that “Boeing’s a little bit late, unfortunately.”

Ramaphosa, who was sitting next to Trump in the Oval Office and has been working to repair his relationship with the president, said, “I’m sorry I don’t have a plane to give you.”

“If your country was offering the United States Air Force a plane, I would take it,” Trump said.

Trump has presented no national security imperative for a swift upgrade rather than waiting for Boeing to finish new Air Force One jets that have been in the works for years.

He has tried to tamp down some of the opposition by saying he wouldn’t fly around in the aircraft when his term ends. Instead, he said, the plane would be donated to a future presidential library, similar to how the Boeing 707 used by President Ronald Reagan was decommissioned and put on display as a museum piece.

Virginia housing sales drop again, but listings spike 35.5%

SUMMARY:

  • Home sales in Virginia declined for the third consecutive month in April, despite a 35.5% surge in
  • Regional sales trends were mixed, with decreases in Southwest Virginia and surrounding areas, but increases in , Charlottesville and
  • Economic uncertainty and high mortgage rates are likely contributing to slower sales, with rising unemployment claims and job cuts linked to federal spending reductions under the Trump administration

Virginia’s home sales have slowed down for the third month in a row, according to April’s statewide sales data released Wednesday by .

The trade association reports that the state’s active listings jumped 35.5% in April, the biggest year-over-year gain since 2019. But closed sales dipped 0.8%, with 9,334 homes sold last month — 74 fewer than a year ago. Furthermore, the year’s sales activity through April is 3.1% lower than last year’s.

The report specifically notes a slowdown in sales in Southwest Virginia, the New River Valley, and regions. On the other hand, Northern Virginia, the greater Richmond region, Charlottesville region and the greater Piedmont area, which includes Culpeper, Madison, Rappahannock and Fauquier counties, saw increased sales in April.

Data accessed May 15, 2025, shows changes in home sales by region from 2024 to 2025. Image courtesy Virginia Realtors

In a statement, Virginia Realtors Chief Economist Ryan Price noted that sales are “trailing” 2024 levels.

“This could be a reflection of uncertainty with the employment landscape in some parts of the state, as well as mortgage rates which have hovered in the upper 6% range so far this year,” he said.

The state’s pending sales increased for a second consecutive month, with 9,962 pending in April — a 5.6% increase from March and a 1.5% increase over April 2024. The association says the March increase reflects a typical spring market bump with more buyers and sellers entering the market.

Virginia Realtors notes in the report that the U.S. economy shrank in the first quarter of the year, amid uncertainties surrounding ‘s and shifting consumer sentiment. It also said the decline in gross domestic product at the beginning of the year mainly was because businesses rushed to shore up their reserves before imposed by Trump went into effect.

The report also notes that consumers are reining in their spending. While total employment levels increased in Virginia, the also increased. Virginia Works reported that for the week ending May 10, there were 18,144 continued claims, 14.5% higher than the comparable week of last year (15,847). Old Dominion University Economist Bob McNab told Virginia Business last week that he believes at least some of the unemployment numbers can be attributable to the Trump administration’s cutting federal contracts and tens of thousands of federal jobs.

Data accessed May 15 comparing Virginia home sales from 2021 to 2025. Image Courtesy Virginia Realtors
Virginia home sales from 2021 to 2025. Image courtesy Virginia Realtors

The Virginia market had 21,739 active listings at the end of April, a significant 35.5% jump from last year. The association says the inventory growth offers buyers some supply-side relief, but elevated mortgage rates and climbing prices are creating affordability challenges, especially for first-time buyers.

Virginia’s median home prices rose in nearly 70% of the state’s local markets compared to last year. The statewide April median sales price was $425,000, up $8,453 — a 2% increase — from last April.

The association reports that prices were higher in parts of the Greater Piedmont, Greater Augusta and Southern Piedmont regions, but the median prices in the Dan River region dropped compared to last year.

Due to home price growth, Virginia Realtors says the sold dollar volume in Virginia increased from last year’s level despite a slowdown in sales activity. The association reports about $5.1 billion of sales statewide in April, an increase of about $136 million or 2.7% from April 2024.

On average, homes took a little over a week to sell in Virginia, with the median days on market being 10 days, increasing from 7 days last April.

“While homes are staying on the market slightly longer than they were last year, the current days on market is still quite low by historical standards,” Virginia Realtors President Lorraine Arora said in a statement.

Based in Glen Allen, Virginia Realtors represents about 35,000 Realtors and is the state’s largest trade association.

Virginia congressman dies from cancer

SUMMARY:

  • U.S. Rep. Gerry has died from cancer during his ninth term in Congress representing
  • Connolly announced in April that his esophageal cancer had returned and that he would be stepping back as ranking Democrat on the House Oversight Committee, as well as this being his last term in office
  • Connolly was formerly a Fairfax County supervisor
  • He endorsed Fairfax Supervisor James Walkinshaw in the Democratic primary election to succeed him

, a nine-term Democrat representing Virginia’s 11th congressional district, has died, his family announced Wednesday morning.

Connolly was 75, and in April, he announced that his esophageal cancer had returned and that this would be his last term in Congress. He represented the city of Fairfax and most of Fairfax County, and before being elected to Congress in 2008, he served on the Fairfax County Board of Supervisors from 1995 to 2009.

His family issued a statement Wednesday, saying that Connolly “passed away peacefully at his home this morning surrounded by family.

“Gerry lived his life to give back to others and make our community better. He looked out for the disadvantaged and voiceless,” the statement said. “He always stood up for what is right and just. He was a skilled statesman on the international stage, an accomplished legislator in Congress, a visionary executive on the Fairfax County Board of Supervisors, a fierce defender of democracy, an environmental champion, and a mentor to so many. But more important than his accomplishments in elected office, Gerry lived by the ethos of ‘bloom where you are planted.’ From the Silver Line to the Oakton Library, Mosaic District to the Cross County Trail and beyond, his legacy now colors our region.”

U.S. Sen. Mark Warner issued a statement after the announcement: “I’ve known Gerry for more than 35 years. To me, he exemplified the very best of public service. Just this past Sunday, I was honored to join his wife Smitty, daughter Caitlin, and the Fairfax community in celebrating his decades of service. While Gerry couldn’t be there in person, his presence was felt throughout the room. He was there in spirit, as he always is when people come together in the name of service and progress.”

Gov. Glenn Youngkin said in a statement on X, “We are deeply saddened by the passing of Congressman Gerry Connolly. His decades of public service reflect a deep commitment to Virginia. Suzanne and I send our heartfelt prayers to his family, friends and all who mourn his loss.”

On Tuesday, Connolly and U.S. Rep. James Comer, R-Kentucky, introduced the bipartisan Esophageal Cancer Awareness Act to commission a federal study on gaps in screening and prevention of esophageal cancer. Connolly announced last November that he had been diagnosed with the cancer.

In April, Connolly stepped back as ranking Democratic member of the House’s Oversight Committee after the return of his cancer. He assumed the role in January after an intraparty battle, and with the return of to the White House, Connolly was outspoken in his criticism of layoffs of federal workers and the role of Elon Musk’s Department of Government Efficiency, or DOGE, in gaining access to sensitive government information and firing civil servants.

In March, Connolly said that he had initiated more than 150 investigations and inquiries into DOGE’s activities as ranking member of the committee, which acts as a watchdog for abuse, waste and fraud.

“We will continue to use every tool at our disposal to expose DOGE and stop its corrupt, dangerous and illegal wrongdoing,” Connolly said.

Earlier this month, The Washington Post reported that Connolly had endorsed his former chief of staff, Fairfax County Supervisor James Walkinshaw, in Walkinshaw’s bid for the Democratic nomination to succeed Connolly in Congress. State Sen. Stella Pekarsky also is running for the Democratic nomination in the deep blue congressional district.

A Boston native, Connolly considered becoming a priest but decided instead to devote himself to public service, working for nonprofit organizations and later as a U.S. Senate staffer. He later worked for SRI International as the R&D nonprofit’s vice president of economic policy, and as vice president of community relations for defense contractor SAIC.

According to the Post, Connolly was president of a neighborhood association in Fairfax County when 375,000 gallons of petroleum leaked from a storage facility in 1991 and put his neighborhood’s water supply at risk, along with other environmental harm. Connolly negotiated a settlement with the business, and he worked with the county to provide safe water to residents and for the fire department to run tests on the water later. After this crisis, he won his first election to the county board of supervisors.

Target sales drop in 1st quarter and retailer warns they will slip for all of 2025

SUMMARY:

  • reports bigger-than-expected Q1 sales decline
  • Forecasts lower sales for 2025 due to economic pressure
  • Customer boycotts and backlash impact performance
  • Shares dropped over 4% pre-market on Wednesday

NEW YORK (AP) — Target’s challenge to revive sales and its status as a cheap chic retailer just got more complicated.

The discounter announced on Wednesday that sales fell more than expected in the first quarter, and the retailer warned they will slip for all of 2025 year as its customers, worried over the impact of and the economy, pull back on spending.

Target also said customer boycotts did some damage during the latest quarter. The company, long a fierce corporate advocate for the rights of Black and + people, scaled back many diversity, equity and inclusion initiatives in January after they came under attack by conservative activists and the White House. Target’s retreat created another backlash, with more customers angered by the retailer’s reduction of LGBTQ+-themed merchandise for in June of 2023.

Shares fell 3.5% in midday trading Wednesday.

Quarterly sales fell 2.8% from last year to $23.85 billion, and that was short of the $24.23 billion expected, according to FactSet. Target earned $1.04 billion, or $2.27 per share, for the period ended May 3. That compares with $942 million, or $2.03 per share, in the year-ago period.

Target cut its annual sales projections Wednesday. The company now expects a low-single digit decline for 2025 after projecting a 1% increase for sales in March.

It also forecast annual per-share earnings of $7 to $9, excluding gains from legal settlements this year.

For the year, analysts expect earnings per share of $8.34 on sales of $106.7 billion, on average.

Comparable store sales, those from established stores and online channels, fell 3.8%. That includes a 5.7% drop in store sales and a 4.7% increase in online sales. That reverses a comparable store sales increase of 1.5% in the previous quarter.

The number of transactions across online and physical stores fell 2.4%, and the average ticket dropped 1.4%. Target said it couldn’t reliably estimate the individual impact of each of the factors that were hurting its business.

Target is setting up a new office to be led by Chief Operating Officer Michael Fiddelke focused on faster decision-making to help accelerate sales growth. The company said that current Chief Strategy and Growth Officer Christina Hennington is stepping down from her position and will be in a strategic role until Sept. 7.

Neil Saunders, managing director of GlobalData Retail, said Hennington had been considered a potential successor to Cornell.

“This is a tacit admission that Target isn’t doing a good enough job in some areas, so we welcome it as a potential way to engineer change,” Saunders wrote in a note published Wednesday. “But we caution that it can only accomplish its goals if the closed and defensive culture at Target changes for the better.”

Target is also intensifying efforts to entice customers nervous about the economy. The retailer will offer 10,000 new items starting at $1 — with the majority under $20.

“We’re not satisfied with these results, so we’re moving with urgency to navigate through this period of volatility,” Target Brian Cornell told reporters on a call Tuesday. “We’ve got to drive traffic back into our stores or visits to our site.”

Out of 35 merchandise categories that the company tracks, it’s gaining or maintaining market share in only 15. The company reported some market share gains in women’s swimwear, infant and toddler clothing, and active wear.

The latest results underscore Target’s ongoing struggle in recent years to revive sales, particularly in nonessentials like fashion and home furnishings, as competition grows more fierce.

Back in March, Target had outlined to investors how it was going to bring back its “Tarzhay” magic— defined by affordable but trendy offerings — by expanding its store label brands and shortening the time it takes to get products to the shelves from conception. That will help the company stay close to trends, company executives said.

But it’s been a complicated feat even without the tariff trade wars. Target’s shares have fallen more than 37% in the past 52 weeks.

Target rival Walmart reported strong quarterly sales last week. The nation’s largest retailer said it’s already raised prices on some items due to tariffs and that more price hikes are on the way this summer when the back-to-school shopping season goes into high gear. For example, car seats made in China that sell for $350 at Walmart will likely cost customers another $100, executives said.

Target didn’t offer specifics on tariffs’ impact on prices, but said that it was looking at different ways to offset those costs like shifting sourcing. It said it should be able to offset the majority of the impacts from tariffs.

“We look at competition,” Cornell told reporters. “We make adjustments literally each and every week, so we’re constantly adjusting pricing. Some are going up. Some will be reduced.”

‘s threatened 145% import taxes on Chinese goods were reduced to 30% in a deal announced May 12, with some of the higher tariffs on pause for 90 days.

Walmart was able to dodge some of the tariff damage other retailers are suffering because groceries account for about 60% of its U.S. business. Target is more reliant on discretionary items like clothing and accessories, with less than a quarter of its sales coming from groceries.

The company has reduced the number of its store-label products sourced from China to 30% now from 60% in 2017. The company says is on its way to reducing that to 25% by the end of next year. Target is shifting sourcing to Guatemala and Honduras and is looking to sourcing in the U.S.

Target is being pressured on other fronts as well.

The company in January said it would phase out a handful of DEI initiatives, including a program designed to help Black employees advance their careers and promote Black-owned businesses. Conservative activists and have sought to dismantle DEI policies in the , schools, and at private businesses.

The pastor of a Georgia megachurch who led a nationwide 40-day of Target stores in response called last month for a continuation of that effort.

The Rev. Jamal Bryant is seeking a reinvigorated commitment from Target on diversity, and he wants more support from Target for Black-owned banks and businesses.

Target operates nearly 2,000 stores nationwide and employs more than 400,000 people.

US stocks drift lower as mixed profit reports from retailers and higher Treasury yields weigh

SUMMARY:

  • , , and Dow futures dropped ahead of market open
  • warns of lower sales amid and weak consumer demand
  • rose nearly 1% on reported Israeli threats to Iran
  • Market rattled by geopolitical and economic uncertainty

NEW YORK (AP) — Most U.S. stocks are falling on Wednesday after some of the country’s biggest retailers gave mixed forecasts for where they see their profits heading under the uncertainty caused by ‘s .

The S&P 500 was down 0.2% in afternoon trading and on track for a second straight drop after breaking a six-day winning streak. The Industrial Average was down 338 points, or 0.8%, as of 12:56 p.m. Eastern time, while gains for Google’s parent company and a handful of other influential tech stocks sent the Nasdaq composite 0.3% higher.

Stocks were also feeling pressure from higher Treasury yields in the bond market. Such rises in yields can push down prices of all kinds of investments, and yields have been climbing in part because of concerns that tax cuts under consideration in Washington could pile trillions of more dollars onto the U.S. government’s debt.

Target slumped 4.1% after the retailer reported weaker profit and revenue than analysts expected for the start of the year. The company said it felt some pain from boycotts by customers. It had scaled back many diversity, equity and inclusion initiatives early this year following criticism by the White House and conservative activists, which drew its own backlash.

Perhaps more worryingly for , Target also cut its forecast for profit over the full year.

Lowe’s fell more modestly after after reporting a profit for the latest quarter that edged past analysts’ expectations. The home-improvement retailer also said it’s sticking with its forecasts for sales and profit over the full year, even with “near-term uncertainty and headwinds,” according to CEO Marvin Ellison.

Its stock was most recently down 1.6%.

Carter’s, which sells apparel for babies and young children, sank 9.9% after cutting its dividend. New CEO Doug Palladini said the company made the move in part because of investments it anticipates making in upcoming years, as well as the possibility that it “may incur significantly higher product costs as the result of the new proposed tariffs on products imported into the United States.”

On the winning side of Wall Street was Keysight Technologies, which not only topped analysts’ expectations for profit and revenue in the latest quarter but also raised its forecast for growth over its full fiscal year. The hardware, software and services company rose 3.2%.

Homebuilder Toll Brothers climbed 2.6% after beating analysts’ forecasts for profit and revenue in the latest quarter. It stood by its forecast for how many homes it will deliver this fiscal year, as a shortage of housing nationwide helps offset what it called a “softer demand environment.”

Gains for a handful of influential tech stocks also helped limit the market’s overall losses, even though four out of five stocks within the S&P 500 were falling. Alphabet rose 4.4%, and chip company Advanced Micro Devices climbed 1.6%.

A growing number of companies have recently said tariffs and uncertainty about the economy are making it difficult to guess what the upcoming year will bring. Others, including Walmart, have said they’ll have to raise prices to offset Trump’s tariffs.

U.S. stocks have recently recovered most of their steep losses from earlier in the year as Trump has delayed or rolled back many of his stiff tariffs. Investors are hopeful that Trump will lower his tariffs more permanently after reaching trade deals with other countries.

In the bond market, the yield on the 10-year Treasury rose to 4.54% from 4.48% late Tuesday and from just 4.01% early last month. That’s a notable move in the bond market.

Such yields effectively show how much in interest governments are having to pay investors in order to borrow money, and they’ve been on the rise for developed economies around the world. That’s partly because governments are continuing to borrow more cash to pay their bills, while central banks like the Federal Reserve have cut back on their own investments in government bonds.

Moody’s Ratings became the last of the three major ratings agencies late last week to downgrade the U.S. government’s credit rating on concerns that it may be heading toward an unsustainable amount of debt.

“We do not think that the downgrade matters by itself,” Bank of America strategists wrote in a BofA Global Research report, “but it has served as a wake up call for those investors who had been ignoring the ongoing fiscal discussion.”

In stock markets abroad, indexes were mixed amid mostly modest movements across Europe and Asia

London’s FTSE 100 rose 0.1% after a report said inflation in the United Kingdom spiked to its highest level for more than a year in April.

Tokyo’s Nikkei 225 fell 0.6% after a report said Japan’s exports have slowed due to tariffs

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AP Business Writers Matt Ott and Elaine Kurtenbach contributed.

Notes: Eds: UPDATES: trading.