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Fired Surface Transportation Board member sues Trump over his dismissal ahead of rail merger review

Summary

  • challenges his Aug. 28 dismissal from the STB
  • Lawsuit alleges firing was illegal and threatens board independence
  • Primus was the only member to oppose a major railroad merger
  • Dismissal occurred ahead of ‘s $85B deal

The Democratic member of the U.S. that President fired ahead of the group considering the largest rail merger ever filed a lawsuit challenging his dismissal as illegal.

Robert Primus, who had served on the board since 2001, said the White House never even gave him a reason for his Aug. 28 firing that threatens the independence of the five-member STB. His termination happened before the board got a chance to start reviewing Union Pacific’s proposed $85 billion acquisition of Norfolk Southern to create the first true transcontinental railroad.

“Our country’s supply chain demands that the board be independent and transparent. Congress mandated it 138 years ago,” Primus said. “Failure to do so will negatively affect the network: railroads, shippers, and rail alike, disrupting the supply chain and ultimately injecting instability into our nation’s economy. This is dangerous, and wrong, and cannot not be allowed to happen.”

The White House did not immediately respond to the lawsuit filed Tuesday, but the press office is running with a reduced staff in the midst of the ongoing . At the time of the firing, the only reason offered publicly was as statement saying “Robert Primus did not align with the President’s America First agenda.”

But Primus’ defenders led by Skye Perryman, who is the President and CEO of Democracy Forward, said this action ignores the way the STB was set up. Congress established that the only reasons someone should be fired from the STB was in cases of inefficiency, neglect of duty, or malfeasance in office.

“President Trump continues to target members of independent boards, without cause, in violation of the law. Congress made clear when creating the Surface Transportation Board that the agency should be independent and above politics,” Perryman said.

Trump has fired a string of board members at various agencies that are supposed to be independent including the , the National Transportation Safety Board, Equal Opportunity Commission and Nuclear Regulatory Commission.

Primus said he always strove to be impartial and apolitical in his time on the board that was supposed to continue through the end of 2027. His firing broke a 2-2 tie between Republicans and Democrats on the board and cleared the way for Trump to appoint two more members.

Every rail worker union, the nonprofit Rail Passengers Association and Democratic members of Congress quickly condemned the firing when it happened. Democratic Sen. Tammy Baldwin said at the time Primus was fired that it looked like Trump was trying to stack the board so it will rubberstamp the Union Pacific merger.

Since then, Trump has said the merger sounds good to him after he met with Union Pacific’s CEO in the Oval Office last month.

Primus was the only board member to oppose Canadian Pacific’s acquisition of Kansas City Southern railroad when it was approved two years ago because he was concerned it would hurt competition, which remains a concern for him though he hasn’t taken a position on the UP-NS deal. He was named board chairman last year by former President Joe Biden and led the board until Trump, after his election, elevated Republican Board member Patrick Fuchs to chairman.

US stocks hit new highs despite government shutdown

Summary

  • , Dow, and Nasdaq all hit new record highs
  • Market largely unaffected by ongoing U.S.
  • ADP report signals weaker-than-expected hiring in September
  • data also came in below forecasts

NEW YORK (AP) — Stocks rose to more records on Wednesday, as still doesn’t care much about the shutdown of the U.S. government, but yields sank in the bond market following the latest discouraging signals on the economy.

The S&P 500 climbed 0.3% to top its prior all-time high, which was set last week. The Industrial Average added 43 points, or 0.1%, to its own record set the day before, while the Nasdaq composite rose 0.4%.

The action was stronger in the bond market, where Treasury yields dropped after a report suggested hiring may have been much weaker across the country last month than economists expected.

Employers outside the government actually cut 32,000 more than they added, according to the survey by ADP Research, with the Midwest taking particularly hard hits. What’s worse, the survey also revised down its numbers for in August, to a loss of 3,000 jobs from a previously reported gain of 54,000.

Usually, traders on Wall Street wait for a more comprehensive that comes from the U.S. government each month to suss out how the job market is doing. The U.S. government gets its data from a larger sample of employers than the ADP survey, which does not have a perfect track record predicting what the more comprehensive report will say each month.

But the next Labor Department report, scheduled for Friday, is likely to be delayed because of the shutdown of the U.S. government that began just after midnight.

“Whether this is an accurate statistic or not, people in the markets believe that it signals something,” according to Carl Weinberg, chief economist at High Frequency Economics. “The signal from today’s headline will not be a good one.”

The hope on Wall Street has been that the job market will continue to slow by a very precise amount: enough to convince the to keep cutting , but not by so much that it brings a recession.

That’s a delicate balance to achieve, and every economic report from the U.S. government that gets delayed only increases the uncertainty about whether it’s possible. Stocks have already run to records on expectations for coming cuts to rates, so a lack of them could send the market lower.

To be sure, the stock market and economy have typically powered through past shutdowns, particularly if they are short in duration. But this shutdown could be different in a couple ways, including the threat that the White House may use it to push for large-scale firings of federal workers.

On Wall Street, Nike rose 6.4% after blowing past analysts’ expectations for profit in the latest quarter. The athletic giant reported strong growth for apparel sold in North America.

Lithium America’s stock that trades in the United States jumped 23.3% after the Canadian company said the U.S. government agreed to let it draw from a previously announced $2.26 billion loan. As part of the agreement, the U.S. Department of Energy will take an ownership stake in the Vancouver-based company.

Lithium Americas is developing a lithium project in Nevada with General Motors, and it follows Intel and other companies where the U.S. government has recently taken an ownership stake.

On the losing side of the market was Peloton Interactive, which dropped 3.7%. It got a cold reception to its unveiling of an AI and computer vision system, along with other equipment designed for cross training.

Corteva sank 9.1% after announcing a plan to split into two companies, each with its own stock. One will hold onto the company’s seed business, while the other will focus on crop protection.

Cal-Maine Foods fell 1.2% after the egg company’s profit and revenue for the latest quarter fell short of analysts’ expectations.

All told, the S&P 500 rose 22.74 points to 6,711.20. The Dow Jones Industrial Average added 43.21 to 46,441.10, and the Nasdaq composite climbed 95.15 to 22,755.16.

In stock markets abroad, indexes rose in Europe following a mixed finish in Asia.

In the bond market, the yield on the 10-year Treasury sank to 4.10% from 4.16% late Tuesday.

Yields fell as the weaker-than-expected payroll report from ADP firmed expectations for coming cuts to rates by the Fed. So did another report showing that U.S. manufacturing was weaker last month than economists expected.

Several manufacturers told the Institute for Supply Management’s surveyors that they’re still feeling pain because of tariffs.

“Steel tariffs are killing us,” one manufacturer said.

AOL officially ends dial up internet service after decades

Summary

  • ends its service as of Sept. 30
  • Dial-up introduced millions of households to the web
  • and wireless eclipsed dial-up in popularity
  • AOL confirms closure after evaluating its offerings

NEW YORK (AP) — It’s official: AOL’s dial-up internet has taken its last bow.

AOL previously confirmed it would be pulling the plug on Tuesday (Sept. 30) — writing in a brief update on its support site last month that it “routinely evaluates” its offerings and had decided to discontinue dial-up, as well as associated software “optimized for older operating systems,” from its plans.

Dial-up is now no longer advertised on AOL’s website. As of Wednesday, former company help pages like “connect to the internet with AOL Dialer” appeared unavailable — and nostalgic social media users took to the internet to say their final goodbyes.

AOL, formerly , introduced many households to the World Wide Web for the first time when its dial-up service launched decades ago, rising to prominence particularly in the 90s and early 2000s.

The creaky door to the internet was characterized by a once-ubiquitous series of beeps and buzzes heard over the phone line used to connect your computer online — along with frustrations of being kicked off the web if anyone else at home needed the landline for another call, and an endless bombardment of CDs mailed out by AOL to advertise free trials.

Eventually, broadband and wireless offerings emerged and rose to dominance, doing away with dial-up’s quirks for most people accessing the internet today — but not everyone.

A handful of consumers have continued to rely on internet services connected over telephone lines. In the U.S., according to Census Bureau data, an estimated 163,401 households were using dial-up alone to get online in 2023, representing just over 0.13% of all homes with internet subscriptions nationwide.

While AOL was the largest dial-up internet provider for some time, it wasn’t the only one to emerge over the years. Some smaller internet providers continue to offer dial-up today. Regardless, the decline of dial-up has been a long time coming. And AOL shutting down its service arrives as other relics of the internet’s earlier days continue to disappear.

Microsoft retired video calling service Skype just earlier this year — as well as Internet Explorer back in 2022. And in 2017, AOL discontinued its Instant Messenger — a chat platform that was once lauded as the biggest trend in online communication since email when it was founded in 1997, but later struggled to ward off rivals.

AOL itself is far from the dominant internet player it was decades ago — when, beyond dial-up and IMs, the company also became known for its “You’ve got mail” catchphrase that greeted users who checked their inboxes, as famously displayed in the 1998 film starring Tom Hanks and Meg Ryan by the same name.

Before it was America Online, AOL was founded as Quantum Computer Services in 1985. It soon rebranded and hit the public market in 1991. Near the height of the dot-com boom, AOL’s market value reached nearly $164 billion in 2000. But tumultuous years followed, and that valuation plummeted as the once-tech pioneer bounced between multiple owners. After a disastrous merger with Time Warner Inc., Verizon acquired AOL — which later sold AOL, along with Yahoo, to a private equity firm.

AOL now operates under the larger Yahoo name. A spokesperson for Yahoo didn’t have any additional statements about the end of AOL’s dial-up when reached by The Associated Press on Wednesday — directing customers to its previous summer announcement.

At the time Verizon sold AOL in 2021, an anonymous source familiar with the transaction told CNBC that the number of AOL dial-up users was “in the low thousands” — down from 2.1 million when Verizon first moved to acquire AOL in 2015, and far below peak demand seen back in the 90s and early 2000s. But beyond dial-up, AOL continues to offer its free email services, as well as subscriptions that advertise identity protection and other tech support.

Genworth subsidiary launches inaugural long-term care insurance

SUMMARY:

    • , a subsidiary, launched its first long-term care
    • Product covers nursing homes, assisted living, home care, hospice and respite care
    • Company says the product uses conservative pricing and 50 years of Genworth claims experience to avoid steep premium hikes

CareScout, a subsidiary of -based Fortune 1000 insurance company , announced Wednesday it has launched its first long-term care insurance product.

Known as CareScout Care Assurance, the insurance covers services at nursing homes, assisted living facilities, home , adult day care, hospice care and respite care.

It won’t cover services outside the U.S., services from immediate family (with exceptions) or care provided by or in federal government facilities.

The company describes the launch as “a significant milestone” in broadening its services to support families.

Lynn White, CEO of CareScout Insurance Co., said in a statement the product’s launch represents the company’s commitment “to enabling a better aging journey — one that is thoughtful, dignified and personalized at every step.”

The product is available to people ages 40-65. People can purchase coverage from between $50,000 and $250,000, with daily benefit maximums from $50 to $200 (subject to state minimum benefit requirements). They can also buy optional protection, with options of 1%, 3% and 5%.

Policyholders can adjust coverage levels, inflation protection and benefits after purchase, but they may be asked to go through underwriting again.

Long-term care policies have long been challenging throughout the country, with policyholders seeing their premiums continuously raised higher and higher. KFF Health News reported in 2023 that the private insurance market was “wildly inadequate” in providing financial security for older Americans, with the industry for decades underestimating how long policyholders would live and need care, how many would use their coverage and the cost of the care.

CareScout, however, believes that it can use the decades of data, reporting and experience in the market to help avoid the pitfalls of older long-term care policies.

When asked what safeguards are in place to prevent the steep premium increases that affected older long-term care insurance policies, a Genworth spokesperson said in an email the CareScout Care Assurance product uses conservative pricing assumptions and has 50 years of claims experience from its parent company.

Premiums depend on benefit amount, daily max, inflation protection, deductible period and payment frequency. The spokesperson noted future rate increases may happen if claim costs exceed projections, but increases apply broadly, not individually.

One of the features of the new product is the CareScout Quality Network, a nationwide network of aging care providers who CareScout says are vetted for quality standards and offer “preferred pricing.” The spokesperson said policyholders are not required to use the network, and that it is “a value add to the policy itself.” He said a policyholder can select a provider of their own choosing if they prefer or if one is not available in their area.

“With CareScout Care Assurance, individuals can choose the level of protection they prefer, access helpful resources as they age and leverage a trusted network of providers when care is needed,” White said in a statement. “The product was designed to be simple, flexible and to support the needs of policyholders and their families.”

There are no pre-existing condition exclusions.

CareScout Care Assurance is currently approved in 35 states, but CareScout intends to seek approval in all states. Based in , CareScout is a wholly owned subsidiary of Genworth Financial. Genworth dropped off the Fortune 500 in 2025, slipping to No. 507. The insurer posted 2024 revenue of about $7.3 billion, down about 2.58% from 2023.

Shutdown halts key economic data as Fed weighs rate cuts

Summary

  • Shutdown delays release of monthly and data
  • Fed may lack critical reports before its Oct. 28-29 policy meeting
  • Inflation and hiring trends remain uncertain amid economic slowdown
  • Investors, economists, and businesses turn to private data sources

WASHINGTON (AP) — The that began Wednesday will deprive policymakers and investors of economic data vital to their decision-making at a time of unusual uncertainty about the direction of the .

The absence will be felt almost immediately, as the government’s monthly jobs report scheduled for release Friday will likely be delayed. A weekly report on the number of Americans seeking unemployment benefits — a proxy for layoffs that is typically published on Thursdays — will also be postponed.

If the shutdown is short-lived, it won’t be very disruptive. But if the release of economic data is delayed for several weeks or longer, it could pose challenges, particularly for the . The Fed is grappling with where to set a key interest rate at a time of conflicting signals, with inflation running above its 2% target and hiring nearly ground to a halt, driving the unemployment rate higher in August.

The Fed typically cuts this rate when unemployment rises, but raises it — or at least leaves it unchanged — when inflation is rising too quickly. It’s possible the Fed will have little new federal economic data to analyze by its next meeting on Oct. 28-29, when it is widely expected to reduce its rate again.

“The job market had been a source of real strength in the economy but has been slowing down considerably the past few months,” said Michael Linden, senior policy fellow at the left-leaning Washington Center for Equitable Growth. “It would be very good to know if that slowdown was continuing, accelerating, or reversing.”

The Fed cut its rate by a quarter-point earlier this month and signaled it was likely to do so twice more this year. Fed officials said they would keep a close eye on how inflation and unemployment evolve, but that depends on the data being available.

A key inflation report is scheduled for Oct. 15 and the government’s monthly retail sales report is slated for release the next day.

“We’re in a meeting-by-meeting situation, and we’re going to be looking at the data,” Fed Chair Jerome Powell said during a news conference earlier this month.

The economic picture has recently gotten cloudier. Despite slower hiring, there are signs that overall economic growth may be picking up. Consumers have stepped up their shopping and the Federal Reserve Bank of Atlanta estimates the economy likely expanded at a healthy clip in the July-September quarter, after a large gain in the April-June period.

A key question for the Fed is whether that growth can revive the job market, which this Friday’s report might have helped illustrate. Economists had forecast another month of weak hiring, with just 50,000 new positions added, according to a survey by FactSet. The unemployment rate was projected to stay at a still-low 4.3%.

On , investors obsess over the monthly jobs reports, typically issued the first Friday of every month. It’s a crucial indicator of the economy’s health and provides insights into how the Fed might adjust , which affects the cost of borrowing and influences how investors allocate their money.

So far, investors don’t seem fazed by the shutdown. The broad stock index rose slightly Wednesday to an all-time high.

Many businesses also rely on government data to gauge how the economy is faring. The Commerce Department’s monthly report on retail sales, for example, is a comprehensive look at the health of U.S. consumers and can influence whether companies make plans to expand or shrink their operations and workforces.

For the time being, the Fed, economists, and investors will likely focus more on private data.

On Wednesday, the payroll provider ADP issued its monthly data, which showed that businesses cut 32,000 jobs in September — a signal the economy is slowing. Still, ADP chief economist Nela Richardson said her firm’s report “was not intended to be a replacement” for government statistics.

The ADP data does not capture what’s happening at government agencies, for example — an area of the economy that could be significantly affected by a lengthy shutdown.

“Using a portfolio of private sector and government data gives you a better chance of capturing a very complicated economy in a complex world,” she said.

The Fed will remain open no longer how long the shutdown lasts, because it funds itself from earnings on the government bonds and other securities it owns. It will continue to provide its monthly snapshots of industrial production, which includes mining, , and utility output. The next industrial production report will be released Oct. 17.

Lego’s $1B Chesterfield facility nears 35% completion

 

SUMMARY:

  • ‘s $1B Chesterfield facility is nearly 35% complete as of Wednesday
  • Lego has hired about 500 employees for the facility and expects to hire 1,760 over 10 years
  • Company also will build $366M warehouse in Prince George County

The ‘s $1 billion facility in is nearly 35% complete, Lego Virginia General Manager Jesus Ibañez said Wednesday.

The Danish toymaker held a topping-out ceremony Wednesday at the 340-acre site in Meadowville Technology Park, placing a steel beam signed by Gov. and other government and business executives atop the structure of its packing building. Although there weren’t any colorful plastic bricks, a steel structure with a ceiling and some flooring stood on site.

“I do believe that today is a milestone in so many regards,” Youngkin said. “It’s a milestone in a project, it’s a milestone in commitment, it’s a milestone in collaboration and partnership, and it is also a milestone in the impact that these bricks have on children’s lives.”

Billund, Denmark-based Lego first announced the project, expected to create about 1,760 over 10 years, in July 2022 and held a ceremonial groundbreaking at the site in April 2023. The company initially expected to begin production there in the second half of 2025 but announced in February 2024 that production would begin in 2027.

Lego is targeting January 2027 for the Virginia site’s completion, Ibañez said. When complete, the site will have 13 buildings comprising more than 1.7 million square feet, including office spaces, molding, processing and packing facilities and a high-bay warehouse.

“In 2027, this building will be buzzing with activity,” Ibañez said. “Just think for a moment, right here in this location, our bricks, packed in pre-packed bags, will be assembled with building instructions and placed into the colorful Lego boxes you will see on shelves, reaching children and, of course, adults all over the world.”

Gov. Glenn Youngkin (L) signs a steel beam while Lego Vice President Preben Elnef and Lego Manufacturing Virginia General Manager Jesus Ibañez look on at the topping out ceremony for Lego's $1 billion Chesterfield facility on Oct. 1, 2025. Photo by Katherine Schulte/Virginia Business
Gov. Glenn Youngkin (L) signs a steel beam while Lego Vice President Preben Elnef and Lego Manufacturing Virginia General Manager Jesus Ibañez look on at the topping out ceremony for Lego’s $1 billion Chesterfield facility. Photo by Katherine Schulte/Virginia Business

The company currently has hired more than 500 people to package toys in a temporary facility in Chesterfield’s Walthall Interchange Industrial Park. Those workers will eventually transition to the permanent factory, Ibañez told Virginia Business and reporters from other media outlets.

“We will transition the colleagues,” he said. “We will run both facilities at the same time. For a while, the temporary facility will help us to ramp up what we are going to do here. Gradually, we will start increasing jobs in this facility.”

Gray | Hourigan, a joint venture between Lexington, Kentucky-based Gray and Richmond-based Hourigan, is the general contractor on the project, which has about 1,000 construction workers.

The Chesterfield factory will be Lego’s first facility and its second in North America (the first being in Monterrey, Mexico).

Lego Vice President Preben Elnef said Lego’s partnerships “with the Commonwealth of Virginia, Chesterfield County, Gray | Hourigan, the local business community, organizations and so many others reminds me and us in the Lego Group why we have selected the location here. It is not only awesome — it’s perfect for Lego Manufacturing Virginia here, right here.”

In May, Lego and Youngkin announced the company will build a $366 million, 2 million-square-foot warehouse and distribution center in Prince George County. Lego expected to start construction on the facility later this year and have it operational in 2027.

“Together with our regional distribution center we are building in Prince George County, we will add vital capacity and capabilities to the Lego Group’s global supply chain,” Ibañez said. “With the opening of the factory, we will be able to shorten our supply and respond more quickly to U.S. consumer demand and reduce the environmental impact from shipping long distance.”

The Prince George regional distribution center will be the second in Lego’s Americas network, joining an existing center in Fort Worth, Texas.

Youngkin announced last week that he is recommending the Commonwealth Transportation Board allocate $25 million to widen the Meadowville Road bridge. Currently, Meadowville Road narrows from four lanes to two lanes on the bridge over Interstate 295. The CTB next meets Oct. 15, after a workshop on Oct. 14.

Founded in 1932 by Danish carpenter Ole Kirk Christiansen, Lego reported 74.3 billion Danish Krone in 2024 revenue, equivalent to about $11.27 billion. It employs more than 31,000 people worldwide, including more than 3,500 employees in the United States.

Lego has had a presence in the U.S. since the 1960s, when it entered a partnership with Samsonite to manufacture and market its bricks in the country. In 1973, the company established its American subsidiary, Lego Systems, after the license agreement with Samsonite for the U.S. market was cancelled. The toymaker is moving its U.S. headquarters from Enfield, Connecticut, where it has been since 1975, to Boston in 2026.

D.C.-area leaders launch initiative to help laid-off federal workers

SUMMARY:

    • launched to help laid-off in the D.C. region
    • Initiative is led by the Metropolitan Washington Council of Governments with local support
    • Federal job cuts are hitting the D.C. area especially hard, prompting the initiative to fight to retain local talent

Government and business leaders on Wednesday launched a new initiative and website designed to help laid-off federal workers find and prevent them from leaving the , D.C., region.

Unveiled during a launch event Wednesday and spearheaded by the Metropolitan Washington Council of Governments (COG), the Talent Capital initiative and website aims to aid displaced workers in finding new jobs that fit their skills and interests. It also offers tailored training and career resources across the region.

The initiative has support from a coalition of government, and nonprofit partners across Virginia, and Washington, D.C.

The Talent Capital’s services are free and are available to all residents in D.C. region, with focus on the 24 local governments encompassed by the Metropolitan Washington Council of Governments.

The Talent Capital website, TalentCapital.AI, is operated by D.C. software company BuildWithin and offers free AI agents that help connect users with job matching, training, reskilling and career navigation services. It also contains links and resources to job opportunities, coaching opportunities, local networking events and job coaching.

The website was launched in a year in which the has announced plans to cut 300,000 federal jobs by the end of 2025. In an interview, COG Executive Director Clark Mercer noted that because the D.C. region’s is heavily tied to the federal government, the Trump administration’s federal workforce cuts are having a disproportionate impact in the area.

As of early 2025, Virginia had 321,516 federal civilian workers, second only to California, according data from the Weldon Cooper Center for Public Service at the University of Virginia. Virginia also ranks No. 1 in federal contract spending, with $109 billion spent in the state in 2023, 62% of which went to . More than 441,000 jobs depend on that funding, according to the center.

As thousands of people in the region have lost their jobs, Mercer said, other states have aggressively been marketing to lure those laid-off workers out of the area. The hope is that the Talent Capital initiative will help the D.C. region retain its local talent.

All 24 local governments in the COG’s region are supporting the program, including Arlington, Fairfax, Loudoun and Prince William counties and the cities of Fairfax, Falls Church, Manassas and Manassas Park.

While any job seeker can use the Talent Capital site, the jobs promoted are located with the regional footprint, with an aim to simplify job searches by consolidating listings that may previously have been scattered across multiple job boards.

“You’ve seen Maryland and D.C. both lose their AAA bond rating directly tied to what’s happened at the federal level,” Mercer said. “You saw CNBC rate Virginia the fourth best state for business, down from [No. 1], directly attributing that to what’s happened at the federal level, [and] the Weldon Cooper Center at U.Va. has said there will be no net job growth … in Virginia this year. So, these are all … not just warning signs, but like flashing red lights that we need to work together as a region … to be responsive, because it’s not going to get the job done just working in silos.”

Some high-priority career paths being promoted on the website include jobs connected to AI, big data, cybersecurity, and tourism. A long-term goal of the initiative is to improve regional collaboration across states and higher education institutions to align workforce training with in-demand fields.

“Talent Capital ensures that our residents can stay in the region they call home, access high-quality jobs, grow their careers, and drive innovation across key industries,” said Washington, D.C., Mayor Muriel Bowser said in a statement. “We are proud to lead this effort, and confident that economic mobility and opportunity will continue to define our region for years to come.”

In Virginia, Gov. earlier this year unveiled VirginiaHasJobs.com, an online resource to help unemployed people in the commonwealth find job opportunities across the state. VirginiaHasJobs.com is listed as a partner for Talent Capital.

The Talent Capital infrastructure will continue to evolve based on user feedback, with new support and resources added on an ongoing basis, Bowser said.

Supreme court lets Lisa Cook stay on Fed board for now

Summary

WASHINGTON (AP) — The Supreme Court on Wednesday allowed Lisa Cook to remain as a Federal Reserve governor for now, declining to act on the ‘s effort to immediately remove her from the central bank.

In a brief unsigned order, the high court said it would hear arguments in January over Republican President ‘s effort to force Cook off the Fed board.

The court will consider whether to block a lower-court ruling in Cook’s favor while her challenge to her firing by Trump continues.

The high-court order was a rare instance of Trump not quickly getting everything he wants from the justices in an emergency appeal.

Cook will be able to take part in the remaining two Fed meetings in 2025, including the next meeting of its interest rate-setting committee in late October.

Separately, the justices are hearing arguments in December in a separate but related legal fight over Trump’s actions to fire members of the boards that oversee other independent federal agencies. The case concerns whether Trump can fire those officials at will.

But a second issue in the case could bear directly on Cook’s fate: whether federal judges have the authority to prevent the firings or instead may only order back pay for officials who were wrongly dismissed.

Trump had sought to oust Cook before the September meeting of the Fed’s interest rate-setting committee. But a judge ruled that the firing was illegal, and a divided appeals court rejected the Trumps administration’s emergency appeal.

A day after the meeting concluded with a one-quarter of a percentage point reduction in a key interest rate, the administration turned to the Supreme Court in a new emergency appeal.

The White House campaign to unseat Cook marks an unprecedented bid to reshape the Fed board, which was designed to be largely independent from day-to-day politics. No president has fired a sitting Fed governor in the Fed’s 112-year history.

“President Trump lawfully removed Lisa Cook for cause from the Federal Reserve Board of Governors. We look forward to ultimate victory after presenting our oral arguments before the Supreme Court in January,” White House spokesman Kush Desai said.

The court already has suggested that it will view the Fed differently from other independent agencies and Wednesday’s order is another demonstration of that distinction, said Lev Menand, a professor at Columbia Law School and author of a book on the Fed.

The justices have allowed other firings to take effect while legal challenges proceed, including in the case that will be argued in December involving Rebecca Slaughter, whom Trump fired from the Federal Trade Commission.

“The court seems to be steering a different course here,” Menand said. “It has the effect of freezing the status quo that is in favor of Fed independence.”

Cook, who was appointed to the Fed board by Democratic President Joe Biden, has said she will not leave her job and won’t be “bullied” by Trump. One of her lawyers, Abbe Lowell, has said she “will continue to carry out her sworn duties as a Senate-confirmed Board Governor.”

Separately, Senate Republicans recently confirmed Stephen Miran, Trump’s nominee to an open spot on the Fed’s board. Both Cook and Miran took part in last month’s meeting. Miran was the sole dissenting vote, preferring a larger cut.

Trump has accused Cook of mortgage fraud because she appeared to claim two properties, in Michigan and Georgia, as “primary residences” in June and July 2021, before she joined the Fed board. Such claims can lead to a lower mortgage rate and smaller down payment than if one of them was declared as a rental property or second home.

“Put simply, the President may reasonably determine that paid by the American people should not be set by a Governor who appears to have lied about facts material to the interest rates she secured for herself — and refuses to explain the apparent misrepresentations,” Solicitor General D. John Sauer wrote in his Supreme Court filing.

Cook has denied any wrongdoing and has not been charged with a crime. According to documents obtained by The Associated Press, Cook specified that her Atlanta condo would be a “vacation home,” according to a loan estimate she obtained in May 2021. In a form seeking a security clearance, she described it as a “2nd home.” Both documents appear to undercut the administration’s claims of fraud.

U.S. District Judge Jia Cobb ruled that the administration had not satisfied a legal requirement that Fed governors can only be fired “for cause,” which she said was limited to misconduct while in office. Cook joined the Fed’s board in 2022.

Cobb also held that Trump’s firing would have deprived Cook of her due process, or legal right, to contest the firing.

By a 2-1 vote, a panel of the federal appeals court in Washington rejected the administration’s request to let Cook’s firing proceed.

Trump’s lawyers have argued that even if the conduct occurred before her time as governor, her alleged action “indisputably calls into question Cook’s trustworthiness and whether she can be a responsible steward of the interest rates and economy.”

___

Rocket Lab expands Virginia’s role in commercial space launch, exploration  

Summary

  • opens Launch Pad 0-D at for
  • Gov. calls the project a major milestone for Virginia
  • New pad supports aerospace development and economic growth in the region
  • Neutron rocket aims for first flight this year, with potential missions to Mars

RICHMOND, Va. – Virginia celebrated the opening of its new launch pad last month at Wallops Island, which marks the state’s role in the aerospace industry. Gov. Glenn Youngkin attended the ceremony to cut the ribbon and called the opening an “engineering achievement” and “significant milestone.”  

Rocket Lab Launch Complex 3 is located at a new launchpad created for the reusable Neutron rocket at the Mid-Atlantic Regional Spaceport, a facility that operates on ‘s Wallops Island. 

The new launchpad supports demand for launch-related needs and will fuel aerospace development in Virginia, according to retired Maj. Gen. Ted Mercer, the CEO and executive director of the Spaceport. 

“The opening of Launch Pad 0-D is a bold step forward for Virginia’s growing role in our nation’s commercial space launch industry,” Mercer stated in an email. “It provides the infrastructure to support more diverse and complex missions.” 

The company is excited to meet the growing demand for an increased , according to Rocket Lab’s senior manager of government operations Grace Casey.  

The locality and connection to Virginia has the potential to drive for both Rocket Lab and the region, according to Casey.  

LaunchPad 0-D 

Rocket Lab supplies launch services, spacecraft, satellite and orbit components, according to the company. The company enables more than 1,700 missions globally and supports the commercial, civil and defense markets.  

The company began in New Zealand and moved to the U.S. in 2013 with a mission to make space more accessible for people on Earth, according to Casey.  

“We’re able to reach a lot of the different orbits that we need to from Wallops, as well that we might not be able to get from New Zealand and other places,” Casey said.  

The geographical benefits and isolation of Wallops made it the ideal location for this particular rocket, Casey said.  

Rocket Labs Fully Reusable Rocket  

Rocket Labs Electron is the second most flown U.S. rocket and the third most flown rocket in the world, according to Casey.  

The reusable launch vehicle Neutron will support payload capacities up to 33,000 pounds, according to a press release by the governor’s office. Neutron plans to make its first flight by the end of the year and will launch low-orbit satellites and potentially reach farther orbits like Mars or Venus.  

The launchpad has a black, 285-foot-tall water tower that holds approximately 200,000 gallons of water and can be emptied in less than one minute, according to the governor’s office.  

Due to the large size of the Neutron rocket, more water is needed to provide safety and manage effects during a launch, according to Casey.  

Rocket Lab is working with NASA on a project called “The Mars Telecommunications Orbiter,” according to Casey. This project’s mission is to take a large spacecraft to Mars to relay critical communications to Earth in order to improve future science and exploration missions.  

Impact  

Satellites are essential to obtain data that cannot always be collected on the ground, according to Chris Gough, executive director of Virginia Commonwealth University’s River Rice Center. The Center hosted research teams in collaboration with a NASA training program. 

“I think space exploration, as well as any exploration, is part of our DNA, it’s inherent to who we are and what we do as humans,” Gough said.  

The high volume impact of the Neutron rocket can be damaging to equipment but also to humans and living organisms, according to Joe Franzen, a mechanical and nuclear engineering student at VCU. He believes the water tower is a great safety addition to the facility as it decreases ground impact, creates noise reduction and reduces exhaust energy. 

Franzen highlights the significant usage of solar panels for renewable energy and how space exploration has the ability to expand its benefits and collect data.  

“I think the research that’s done in space, as well as the research done to get us into space, can be really beneficial to us down on Earth,” Franzen said.  

Space exploration has led to beneficial research studies and results, and should continue to be pursued, Frazen said.  

“Humans for a long time have looked up at the stars with wonder,” Franzen said. “We should definitely explore it.” 

Capital News Service is a program of Virginia Commonwealth University’s Robertson School of Communication. Students in the program provide state government coverage for a variety of media outlets in Virginia. 

 

Senate deadlock extends Trump-era government shutdown

Summary

  • Shutdown began after midnight with no funding deal
  • Democrats demand ACA subsidies, GOP refuses to negotiate
  • 750,000 face furloughs or firings
  • Economic fallout and service disruptions expected nationwide

WASHINGTON (AP) — A vote to end the  hours after it began failed Wednesday, as Democrats in the Senate held firm to the party’s demands to fund health care subsidies that President  and Republicans refuse to provide.

The tally showed cracks in the Democrats’ resolve but offered no breakthrough. Blame was being cast on all sides on the first day of the shutdown. The White House and Congress failed to strike an agreement to keep programs and services open, throwing the country into a new cycle of uncertainty.

Roughly 750,000 federal workers were expected to be furloughed, with some potentially fired by Trump’s Republican administration. Many offices will be shuttered, perhaps permanently, as the president vows to “do things that are irreversible” to punish Democrats. Trump’s deportation agenda is expected to run full speed ahead, while education, environmental and other services sputter. The economic fallout is expected to ripple nationwide.

“I certainly pray they will come to their senses,” House Speaker Mike Johnson said, flanked by GOP leaders at the Capitol.

This is the third time Trump has presided over a federal funding lapse and the first since his return to the White House this year. His record underscores the polarizing divide over budget priorities in a political climate that rewards hard-line positions rather than more traditional compromises.

Plenty of blame being thrown around

The Democrats picked this fight, which was unusual for the party that prefers to keep government running, but their voters are eager to challenge the president’s second-term agenda. Democrats are demanding funding for that are expiring for millions of people under the Affordable Care Act, causing the  premiums to spike nationwide.

Republicans have refused to negotiate and have encouraged Trump to steer clear of any talks. After convening a White House meeting this week with the Democratic leaders, the president posted a cartoonish fake video mocking the Democratic leadership that was widely viewed as unserious and racist.

“President Trump’s behavior has become more erratic and unhinged,” Democratic leaders Sen.  and Rep. Hakeem Jeffries said in a joint statement, calling for an “intervention” to get the country out of the shutdown. “Instead of negotiating a bipartisan agreement in good faith, he is obsessively posting crazed deepfake videos.”

Vice President said Republicans want to resolve the health care issues that concern Democrats but will not negotiate until the government reopens.

“It’s craziness, and people are going to suffer because of this,” Vance said Wednesday on the Fox News show “Fox & Friends.”

What neither side has devised is an easy off-ramp to prevent what could become a protracted closure. The ramifications are certain to spread beyond the political arena, upending the lives of Americans who rely on the government for benefit payments, work contracts and the many services being thrown into turmoil.

Economic fallout expected to ripple nationwide

An economic jolt could be felt in a matter of days. The government is expected Friday to produce its monthly , which may or may not be delivered.

veered toward losses before the opening bell Wednesday as the government shutdown went into effect just after midnight.

Across the government, preparations have begun. Trump’s Office of Management and Budget, headed by Russ Vought, directed agencies to execute plans not just for furloughs, which are typical during a federal funding lapse, but mass firings of federal workers. It’s part of the ‘s mission, including its Department of Government Efficiency, to shrink the government.

What’s staying open and shutting down

The Medicare and Medicaid health care programs are expected to continue, though staffing shortages could mean delays for some services. The Pentagon would still function. And most employees will stay on the job at the Department of Homeland Security.

But Trump has warned that the administration could focus on programs that are important to Democrats, “cutting vast numbers of people out, cutting things that they like, cutting programs that they like.”

As agencies sort out which workers are essential, or not, Smithsonian museums are expected to stay open at least until Monday. A group of former national park superintendents urged the administration to close the parks to visitors, arguing that poorly staffed parks in a shutdown are a danger to the public and put park resources at risk.

No easy exit as health care costs soar

Ahead of Wednesday’s start of the fiscal year, House Republicans had approved a temporary funding bill, over opposition from Democrats, to keep government running into mid-November while broader negotiations continue.

But that bill has failed repeatedly in the Senate, including Wednesday, on a 55-45 vote. It needs 60 votes for approval, which requires cooperation between the two parties in a chamber where the GOP has a 53-47 majority. A Democratic bill also failed.

Divisions within the Democrats are apparent, as three senators crossed over to join Republicans, signaling that Democratic leverage may be eroding. One Republican opposed the GOP plan.

During the roll call, an widening group of senators engaged in an intense conversation, including GOP Sen. Mike Rounds of South Dakota, who has been talking with colleagues about the idea of a one-year extension of the expiring health care subsidies.

“It’s just one thought, and there are other ideas that are out there,” Rounds said afterward.

Senate Majority Leader John Thune, who has said Republicans are happy to discuss the health care issue — but not as part of talks to keep the government open — is working to peel off more Democrats to his side.

The standoff is a political test for Schumer, who has drawn scorn from a restive base of left-flank voters pushing the party to hold firm in its demands for health care funding.

Johnson sent lawmakers home nearly two weeks ago after having passed the GOP bill, but said they would be back next week.

Trump, during his meeting with the congressional leaders, expressed surprise at the scope of the rising costs of health care, but Democrats left with no path toward talks.

During Trump’s first term, the nation endured its longest-ever shutdown, 35 days, over his demands for funds Congress refused to provide to build his promised U.S.-Mexico border wall.

In 2013, the government shut down for 16 days during the Obama presidency over GOP demands to repeal and replace the Affordable Care Act, also known as Obamacare. Other closures date back decades.