Category: Associated Press

  • The men behind Trump’s $3.47 gas: An NFL coach, a GOP fundraiser and two New Jersey brothers

    The men behind Trump’s $3.47 gas: An NFL coach, a GOP fundraiser and two New Jersey brothers

    WASHINGTON — President Donald Trump and his White House have enthusiastically promoted the Freedom Fuel Network, a chain of star-spangled convenience stores selling gas at $3.47 per gallon in honor of the 47th president.

    Untangling exactly who is behind the Philadelphia-area venture has proven difficult. Records indicate the chain, which was launched last month, is run by a disparate collection of businessmen that includes an NFL kicking coach, a GOP fundraiser and a New Jersey entrepreneur who this year was ordered, along with his brother, to pay civil damages for unlawfully taking more than 200,000 gallons of fuel.

    How the stations got Trump’s attention remains a mystery, and the four businessmen declined to — or could not be reached for — comment.

    What is clear: Trump loved the idea of cheaper gas. The president celebrated the network’s gas prices just before the busy July 4th travel period as consumers were grappling with higher oil prices sparked by the war with Iran.

    “I am pleased to announce that a VERY smart Retailer, located throughout the Northeast, is stepping up,” Trump wrote about the company on his Truth Social platform on July 1. “America has never been stronger than it is now, and Gas Prices will soon be back to the Record Low Prices Americans enjoyed at the pump before our very successful ‘excursion’ in Iran.”

    The White House followed up with a post on X a few days later that heralded the opening of the first Freedom Fuel station and produced a video showing patrons waving wads of cash and thanking Trump for reducing the prices outside a store festooned with American flags and a golden eagle logo.

    That station, located in Dresher, Pennsylvania, is owned by a subsidiary of Blue Owl Capital, an investment firm, records show. Trump has owned up to $25 million worth of Blue Owl stock, though his most recent financial disclosure says he has sold almost all of that stake.

    The White House denied Trump had any personal connection to the venture, but declined to say how the project was developed. It acknowledged having discussions with individuals who set up the network of gas stations.

    “The Administration is not involved in the company, nor has the Administration given the company any funding. There is no other entity or person subsidizing the lower gasoline costs,” the White House wrote in a statement.

    Blue Owl owns about a third of the Freedom Fuel properties, though the company said it leases the stores to independent contractors and “is not involved in the tenant’s operations or business decisions.”

    Fourteen stations in the 25-location network are controlled by companies linked to Shamikh and Syed Kazmi, two brothers who have been dogged by a string of civil misconduct accusations, including fraud, records show.

    Shamikh Kazmi is leasing eight of those stations from Blue Owl, according to state records and people familiar with the businesses who spoke on condition of anonymity to discuss the matter. The Associated Press was able to link the brothers to six other Freedom Network locations through records that show they listed those stations’ addresses as headquarters for other ventures or supplied those locations with fuel.

    A White House official, who insisted on anonymity to discuss the project, said that no one at the White House who was in conversations with Freedom Fuel Network had specifically spoken or worked with Syed Kazmi, a claim that indicates discussions occurred with the other brother, Shamikh.

    The Kazmis have marketed themselves as “top tier” petroleum distributors and gas station operators, with over 75 years of experience and a deep well of corporate affiliations, according to an archived version of the website for one of their companies.

    Public records offer a more nuanced portrait, showing the Kazmis have been repeatedly sued by companies they had dealings with.

    The brothers have legal issues

    Legal filings detail a series of judgments against the Kazmis, who failed to comply with a court order and have been accused of obscuring their finances and dodging service processors as a growing list of former suppliers and franchisors sought payment.

    In February, a federal judge in New Jersey ordered the Kazmis to pay over $600,000 to a fuel supplier that accused the brothers of stealing gas. The supplier alleged in court filings that it cut the brothers off after they refused to sign a new contract. But the Kazmis exploited a security lapse and gained access to the supplier’s fuel depot. Over a ten-day period in August 2021, tanker trucks absconded with more than 230,000 gallons of fuel, according to the supplier’s court filings. A judge ruled in the supplier’s favor, finding the brothers unlawfully took the gas.

    The fuel supplier says it has yet to receive payment.

    Syed Kazmi was hit with a $380,000 judgment two years ago in a suit brought by 7-Eleven, the convenience chain, which accused him of “dishonest, unethical, immoral” conduct while operating a franchise in Lawrenceville, New Jersey, that was flagged for unsanitary conditions that included trash issues and a rodent infestation. The company also said “tens of thousands of dollars” of cigarettes ordered from 7-Eleven on credit had gone missing.

    A federal judge held a company operated by Shamikh Kazmi in contempt in 2022 in a trademark case brought by BP America.

    Though BP had severed ties with Kazmi’s Diwan Petrol two years prior to the legal action, the corporation’s signage had not been removed from the gas station despite a court order to do so. The judge authorized U.S. Marshals to accompany BP workers to remove it.

    A man who answered a call to a number listed for the Kazmi brothers said he was not the right person to talk to and instead directed inquiries to the Freedom Fuel Network’s website. But that website has no contact information, phone number or mailing address. A request for comment submitted through an online contact form was not answered.

    Company formed in a state known for opacity

    Records from Delaware, a state known for offering incorporators a large degree of opacity, show the Freedom Fuel Network was registered on June 23. The document forming the company was signed by Randy Brown and Yoni Gontownik.

    Politico and the website The Newsground reported that Brown is a senior special teams coach with the Baltimore Ravens. He has also served as the elected mayor of Evesham Township, a New Jersey suburb of Philadelphia, where a Freedom Fuel Network station is located.

    Brown, a Republican, considered a run for Congress in 2021, telling a local newspaper he was a conservative and a “proud Trump supporter.”

    Gontownik is a former investment director at Mercuria, a Swiss-owned commodities trading firm. He and his wife live in northern New Jersey and have been active with the pro-Israel political action committee NORPAC, including hosting fundraisers for Republican members of Congress.

    Gontownik and Brown did not respond to requests for comment.

    Experts say gas likely sold for a loss

    Jeff Lenard, a spokesman for the National Association of Convenience Stores, said Freedom Fuel’s rock bottom promotional price meant the chain was likely selling the gas at a loss.

    “It’s not unusual for retailers to have prices that are different than a market when they’re looking to make a splash,” said Lenard, whose association’s members account for most U.S. retail fuel sales, adding that such a splash typically lasts “a matter of hours or a matter of days.”

    Social media posts and gas-price checking websites show that the per-gallon rate advertised at Freedom Fuel locations began creeping up this week.

    A Freedom Fuel station in Bensalem, Pennsylvania, for example, on Thursday was selling regular gasoline for $3.82 a gallon. That was 27 cents cheaper than at a Sunoco station across the street.

    The Freedom Fuel Network posted a note of thanks to its website this week, crediting Trump’s “strong endorsement” for the “explosive growth” of their business.

    “Despite the misinformation and baseless speculation circulating,” the statement reads, ”let us set the record straight: Freedom Fuel Network is proudly lowering its prices to benefit our community.”

  • AI stocks lead Wall Street higher, even as Brent oil’s price tops $91

    AI stocks lead Wall Street higher, even as Brent oil’s price tops $91

    NEW YORK — More gains for makers of computer chips and other winners of the artificial-intelligence boom carried Wall Street higher Tuesday.

    The S&P 500 climbed 0.9%. The Dow Jones Industrial Average added 385 points, or 0.7%, and the Nasdaq composite rose 1.3%.

    AI stocks once again were at the center of the action, and they rose for a second straight day after tumbling the week before.

    After rocketing higher because of the boom in investment in AI chips and data centers, they’ve come under pressure in recent weeks on worries that they shot too high. Concerns are also weighing that investment in AI may fall off if it doesn’t produce as much profit and productivity as hoped.

    Micron Technology jumped 12.2% and added to its 1.9% gain from the day before, coming off its 13.3% drop from last week. Nvidia added 2%, and they were the two strongest forces lifting the S&P 500.

    The gains came despite more climbs for oil prices, and Brent crude oil briefly got near $92 per barrel for the first time in more than five weeks because of continued attacks between the United States and Iran. It later pared its gain to 2% and settled at $91.01. That’s up from less than $72 early this month, which is roughly where it was before the war with Iran.

    Rising oil prices are threatening a reacceleration of inflation, just as increases for prices were slowing more than economists expected. That in turn could push the Federal Reserve and other central banks to raise interest rates, which would slow economies and undercut prices for stocks and other investments.

    The yield on the 10-year Treasury rose to 4.63% from 4.60% late Monday and from just 3.97% before the war with Iran began.

    On Wall Street, several stronger-than-expected profit reports from big U.S. companies helped stocks to strengthen despite the added pressure.

    3M climbed 7.3% after topping analysts’ expectations for both profit and revenue in the latest quarter. It also raised its forecast for profit over the full year of 2026.

    Hasbro rallied 8.8% after the toy maker said its Magic: The Gathering game topped $500 million in revenue for a quarter for the first time. It also raised its revenue forecast for the year.

    They helped offset a drop for Danaher, which slid 11% even though it likewise topped analysts’ expectations for profit and revenue.

    Homebuilder D.R. Horton slipped 0.9% despite topping profit and revenue expectations for the latest quarter. Executive Chairman David Auld said it’s still feeling the effects of affordability concerns in the housing market and caution among potential homebuyers.

    Companies broadly are under pressure to deliver strong growth in profit and revenue because of how high their stock prices have shot. Indexes are near their records, even with the recent shakiness for AI stocks.

    All told, the S&P 500 rose 65.92 points to 7,509.20. The Dow Jones Industrial Average gained 385.38 to 52,224.64, and the Nasdaq composite climbed 329.13 to 25,837.21.

    In stock markets abroad, indexes rose modestly in Europe. The United Kingdom’s FTSE 100 added 0.6% as new Prime Minister Andy Burnham hosted his first Cabinet meeting.

    In Asia, stocks swung more. South Korea’s Kospi jumped 3.6% on strong gains for its two dominant stocks. Both Samsung Electronics and SK Hynix have been big beneficiaries of the AI boom, and the Kospi has soared 60% so far this year even with its 20% drop through July.

    Tokyo’s Nikkei 225 climbed 3.3% after returning from Monday’s holiday, while indexes rose 1.8% in Shanghai and edged down by less than 0.1% in Hong Kong.

    AP Business Writers Chan Ho-him and Matt Ott contributed to this report.

  • Bystander severely wounded outside White House says Secret Service failed him

    Bystander severely wounded outside White House says Secret Service failed him

    CHICAGO — An active-duty soldier who was hit by a stray bullet during a shooting outside the White House announced on Tuesday that he plans to sue the Secret Service over his life-threatening injuries.

    Pfc. Benjamin Del Real Jr., 25, was visiting the capital on May 23 and hoping to snap pictures with his sister and father outside the White House when a gunman opened fire. Secret Service fired back, killing the man, and a bullet struck Del Real in the stomach, causing serious injuries that required emergency surgery. Part of his digestive system had to be removed.

    Del Real filed notice of a personal injury claim on Tuesday, saying he plans to sue for $25 million under the Federal Tort Claims Act. He accused the Secret Service of botching its response to the shooting and failing to adequately protect him and other bystanders, he and his lawyer, Joseph Murphy, said Tuesday at a news conference.

    “I, my father, and Benjamin all feared for our lives, and the moment that I saw Ben bleeding was undoubtedly the scariest moment of my life,” said his sister, Sara Del Real.

    The Secret Service has not said whether its agents fired the bullet that struck Del Real. The Metropolitan Police Department said earlier this summer that the ballistics on that bullet had not yet been returned. Metropolitan Police Department spokesperson Lee Lepe said Tuesday the investigation is ongoing.

    Federal law enforcement agencies are generally shielded from legal liability, but there are some exceptions, including some claims of employee negligence.

    The Secret Service does not comment on pending litigation, according to Nate Herring, a spokesperson for the Service. He referred questions to the U.S. Attorney’s Office for the District of Columbia, which did not immediately return a message seeking comment.

    Del Real, of Salina, Kansas, and his family had spent hours that day touring the National Archives, Arlington Cemetery, and other landmarks before passing by the White House at around 6 p.m. on their way to dinner. Just then, Del Real saw the shooter, about 20 yards closer to a Secret Service outpost, take out a gun and fire several rounds at their booth, prompting agents to return “a hail of gunfire,” Murphy said.

    The shooter, 21-year-old Nasire Best, was killed.

    Del Real pulled his father to the ground and dragged him behind a concrete barrier, saving his life, but a bullet struck Del Real in the stomach, causing him “life-threatening injuries,” Murphy said. He underwent an emergency surgery, then another two days later to remove the bullet, and is due for a third surgery next month. Doctors had to remove parts of his colon and small intestine.

    Del Real, who joined the Army a year and a half ago, said he is “without a doubt, concerned” about his ability to continue a military career.

    “He’s a young man, he’s 25 years old, and he’s had part of his digestive system taken out,” Murphy said. “It’s not going to get any better from here.”

  • Senate panel advances Jay Clayton’s nomination to lead U.S. intelligence agencies

    Senate panel advances Jay Clayton’s nomination to lead U.S. intelligence agencies

    WASHINGTON — The Senate Intelligence Committee has advanced the nomination of Jay Clayton, President Donald Trump’s pick to head the nation’s intelligence agencies, along party lines.

    The 9-8 vote came after some Democrats had praised Clayton and indicated that they might vote for him. But that shifted after a contentious hearing last week in which Clayton repeatedly refused to say that former President Joe Biden won the 2020 election.

    Virginia Sen. Mark Warner, the top Democrat on the panel, said during the hearing that he was “bitterly disappointed” in Clayton, the U.S. attorney for the Southern District of New York and a former Securities and Exchange Commission chairman, even though he had worked with him in the past.

    The committee’s approval sets up a floor vote on Clayton’s nomination, potentially early next week. The vote took place behind closed doors, as is customary for the panel, and all Democrats voted against Clayton, according to a person familiar with the vote who requested anonymity to disclose it.

    Democrats are unlikely to allow Republicans to speed up a vote on the nomination after the hearing, at which Clayton said many times that the election was “certified” for Biden, declining to say outright that the Democrat won.

    But Senate Democratic Leader Chuck Schumer said after the hearing that he thought Clayton’s performance was “abysmal,” and that “makes it much less likely that he will get Democratic votes.”

    Democrats push back as Trump focuses on 2020

    The Democratic pushback on Clayton comes as Trump has made revisiting the 2020 election, which he lost, a primary focus. On Thursday evening, he delivered a speech from the White House in which he again tried to cast doubts on that election and amplified debunked theories about Biden’s win. Clayton told senators that he had no involvement with that speech.

    Senators in both parties have expressed concerns about the interim director, Bill Pulte, who took over when Tulsi Gabbard resigned last month. Pulte has no known intelligence experience and investigated the president’s perceived enemies in his previous post as a federal housing regulator.

    Republicans were hoping to confirm Clayton in June so he could replace Gabbard without Pulte serving as interim. But Trump delayed Clayton’s nomination before the Senate left for a two-week recess, allowing Pulte to take the job temporarily.

    Clayton did not mention Pulte in the hearing. But he emphasized his own government and national security experience, attempting to assuage senators in both parties.

    “I saw firsthand how a strong national security apparatus depends on decisive judgment, discipline, integrity, and effective communication and cooperation across different branches of the government,” Clayton said in his opening statement. “If confirmed as Director of National Intelligence, I will commit to upholding these principles every day.”

    Arkansas Republican Tom Cotton, who expressed frustration last month when the hearing was delayed, said that Clayton has a reputation for operating with “morality, decency, and integrity” in his previous positions.

    “Jay Clayton is a highly qualified nominee with a deep experience combating a wide range of national security threats. I’m pleased that the Senate Intelligence Committee voted to advance his nomination to be Director of National Intelligence,” Cotton said in a statement on Tuesday.

  • Ukraine’s Zelensky fires military chief after protests and names a replacement

    Ukraine’s Zelensky fires military chief after protests and names a replacement

    KYIV, Ukraine — President Volodymyr Zelensky on Tuesday fired Gen. Oleksandr Syrskyi as commander-in-chief of Ukraine’s armed forces following days of mass protests in Kyiv and other cities nationwide demanding his removal.

    Zelensky appointed Mykhailo Drapatyi as the new army chief, according to a statement on social media. “Our shared wish is one — victory over the enemy and conditions at the front and in pressure on Russia that would force Russia toward peace,” Zelensky said.

    The Ukrainian leader said he made the decision after a series of meetings with military commanders. They began shortly after protests broke out demanding the reinstatement of former Defense Minister Mykhailo Fedorov, seen by demonstrators as a driver of military modernization, and the removal of Syrskyi, who they said embodied the army’s old, Soviet-style command culture.

    Zelensky thanked Syrskyi for his achievements in Ukraine’s fight against Russia and praised him for the defense of Kyiv and for operations in Kharkiv and Kursk. “I am grateful to Oleksandr Syrskyi and to every one of our warriors for Ukraine’s strong front-line positions,” he said. “I am grateful to Mykhailo Drapatyi for holding that same view.”

    On Tuesday, Zelensky separately met with Fedorov and offered him what he called a respected position in government that would unify the country’s technology sector. But it wasn’t clear if Fedorov accepted the offer and whether the latest moves would satisfy protesters and bring peace to the streets.

  • Hegseth estimates Iran war has cost $37.5B so far

    Hegseth estimates Iran war has cost $37.5B so far

    WASHINGTON — Defense Secretary Pete Hegseth faced questions and protests Tuesday over the U.S. war with Iran, which he estimated has cost $37.5 billion so far, as Republicans prepare a $95 billion GOP budget package to fund the military, along with other White House priorities.

    Hegseth provided the new estimate, up from earlier assessments, during a fiery hearing at the Senate Appropriations Committee. Several times, protesters interrupted Hegseth’s opening remarks, which came days after the Pentagon announced that three more American service members have died in the conflict, bringing the death toll to 17, and that more than 100 have been injured since early July.

    Hegseth said the supplemental war funding is an “urgent, necessary” injection of money, and with President Donald Trump’s proposed $1.5 trillion defense budget a generational investment in the military.

    “Without these funds, we face critical shortfalls,” Hegseth testified.

    But Sen. Patty Murray, the top Democrat on the panel, warned of “another forever war.”

    “This war is now spiraling out of control again,” Murray said in her opening remarks.

    Trump “has told us over 40 times now that a deal is near, and the war will be over soon,” she said. ”But now, he’s asking for $70 billion more — and for us to just trust him it’ll all work out fine.”

    Gen. Dan Caine, chairman of the Joint Chiefs of Staff, and Agriculture Secretary Brooke Rollins were also testifying before the panel. The proposed budget package includes $60 billion and $12 billion for other national security needs, along with $10 billion for farm aid and $10 billion for voting law changes.

    Before the hearing, the White House issued a statement urging support of the budget resolution, “without modification—immediately.”

    War funds make up the bulk of the GOP budget plan

    War funding makes up the bulk of the GOP’s new budget proposal, one last priority package the Republicans hope to launch before lawmakers recess to campaign for the midterm elections that will determine control of Congress. The package aims to help farmers struggling under Trump’s tariffs and to pay for voter law changes that are likely to include new ID requirements, none of it paid for with offsets.

    Most Americans continue to disapprove of how Trump is handling Iran, according to an AP-NORC poll. Gas prices have spiked as Iran works to control oil shipments through the Strait of Hormuz, U.S. munitions are running low from the onslaught of American missile strikes and Trump has shifted away from his own campaign promise not to draw the U.S. into prolonged military conflicts.

    Nevertheless, Trump has showed no signs of backing off the war, and the Republicans have largely refused to confront his strategy, question his objectives, or use Congress’ power of the purse or war powers authority to halt the conflict.

    “The commander in chief and the whole Department of War are working very hard to bring this to a resolution,” said House Speaker Mike Johnson at his weekly news conference Tuesday.

    Trump, in a social media post at the start of the week, asked all House Republicans to vote for the budget resolution.

    Hegseth faces questions over war and his own leadership

    Hegseth appeared before the panel facing a torrent of questions about not only the war, but his own leadership of the department.

    Sen. Susan Collins, the Republican chair of the committee, opened the hearing saying it’s “deeply troubling” that the Pentagon has blocked or denied promotions to various officers, particularly women and minorities.

    “This is likely to discourage well-qualified women and individuals of color from joining our armed forces, thus depriving us of their talent, dedication, and patriotism,” Collins said.

    Sen. Jeanne Shaheen of New Hampshire questioned why Hegseth is asking for more money when the department has not yet spent about half the $150 billion Republicans provided the Pentagon in last year’s big budget bill.

    “If you still have $75 billion available, why are you asking the American people to absorb the cost of a war they don’t support?” asked Shaheen, who is also the top Democrat on the Foreign Relations Committee.

    When Hegseth started describing the “historic nature” of Trump’s military strategy, she cut him off.

    Hegseth later explained that the rest of last year’s budget package would be spent by September, which is the end of this fiscal year.

    Republican Sen. John Kennedy of Louisiana was among several senators demanding answers over the situation in the Strait of Hormuz, asking if Iran will impose tolls on what historically has been an open waterway vital to the flow of oil.

    Caine said, “That’s a hypothetical question, and I don’t know the answer to that.”

    But Kennedy retorted: “Guys, we need straight answers.”

    This week, the Senate will consider another war powers resolution, having voted nearly a dozen times to try to halt the conflict. The House has approved a war powers resolution limiting Trump’s ability to wage war, with a few Republicans joining the Democrats to pass the measure, but no resolution has cleared both chambers to be sent to the president’s desk.

    Republicans work to pass budget over Democratic objections

    The GOP budget proposal is expected to flow through the reconciliation process, which enables the majority to approve the plan on its own, over the objections of Democrats in the minority.

    It’s the same lengthy process Republicans used to approve Trump’s big tax cuts bill last summer, as well as Homeland Security money earlier this year.

    The proposal is headed toward a House vote this week, which would start the process by instructing various committees to begin drafting the legislation. Johnson can afford only a few defectors from his slim majority.

    So far one Republican, Rep. Warren Davidson of Ohio, has objected to the budget plan, warning it will pile on to deficits because the new funding is not being offset with spending reductions elsewhere. Other conservative Republicans share those concerns.

    GOP senators have so far panned the House budget plan, but are waiting to see if Johnson can kickstart the process with this week’s voting.

  • Trump administration says it’s deferring $1B in Medicaid payments to California and Minnesota

    Trump administration says it’s deferring $1B in Medicaid payments to California and Minnesota

    The Trump administration on Tuesday said it was deferring more than $1 billion in Medicaid payments to Minnesota and California because of “suspected fraud and noncompliance,” the latest in a series of punitive steps it has linked to allegations of fraud in mostly Democratic-led states.

    Health Secretary Robert F. Kennedy Jr. said the new actions — which come after previously announced Medicaid funding deferrals in those states — are part of the administration’s strategy to “stop the fraud before it happens” rather than claw back problematic spending after bad actors are prosecuted, as previous administrations had done.

    “We have a duty to stop the payments, demand answers, and then follow the evidence wherever it leads,” Kennedy told a news conference.

    The tactic is part of the administration’s sweeping campaign to show it’s cracking down on fraud and saving taxpayers money when rising healthcare costs and other economic stressors have made affordability a top voter concern in November’s midterm elections.

    In March, Vice President JD Vance launched a new anti-fraud task force at the request of President Donald Trump, bringing together officials from various departments to use data and technology to identify and investigate suspected wrongful use of federal dollars.

    But the federal government hasn’t provided “data or explanation on how the deferral amount was calculated or what it was based on” to Minnesota, said John Connolly, the temporary commissioner and state Medicaid director for Minnesota’s Department of Human Services.

    “Today’s actions show that the federal government is acting again in unprecedented and punitive ways as part of their war on Medicaid and its recipients,” he said in a statement. “Partnership — not politics — is required to stop criminals and protect services for the people who need them.”

    Minnesota’s Democratic Gov. Tim Walz suggested the Republican administration was deferring the funds to pay for Trump’s tax cuts to wealthy Americans. California’s Democratic Gov. Gavin Newsom accused the administration of targeting it for political reasons.

    The Trump administration intensified anti-immigration efforts in Minnesota earlier this year, sending in a robust force of Immigration and Customs Enforcement officers whose actions there caused weeks of counterprotests and included the shooting deaths of two civilians. Trump himself has frequently denounced California as a badly governed state.

    States are facing obstacles because of the actions

    The strategy has led to some false starts and headaches for states.

    In April, for example, the Centers for Medicare & Medicaid Services acknowledged to the Associated Press it made a significant error in figures it used to help justify a fraud probe in New York. Last month, California’s Medicaid director told a congressional committee that CMS had not yet provided “any instances of fraud, waste, or abuse” to the state in its justification of a $1.3 billion Medicaid funding deferral announced in May.

    And in Minnesota, state officials have been executing a thorough corrective action plan to defray CMS concerns that have led the agency to defer some $260 million in federal money and to threaten future cuts.

    “We have cooperated in good faith and proactively engaged the Centers for Medicare and Medicaid Services to first raise the alarm on fraud in Minnesota’s Medicaid program, to effectively investigate fraud, and to institute further safeguards against future misuse of funds,” Connolly said.

    Kennedy didn’t specify in Tuesday’s announcement whether the new deferrals — $867.5 million in federal Medicaid payments to California and $199 million to Minnesota — are in addition to, or overlap with, earlier deferrals announced this year.

    CMS Administrator Mehmet Oz didn’t provide concrete examples of fraud in the two states in justifying the deferrals. He did mention some patterns the agency noticed that it found questionable, including that some providers were billing for four or more patients at the same time, or billing after the date of a Medicaid beneficiary’s death.

    Oz also highlighted a fast rate of growth in California’s home care program as a reason for concern. California officials have disputed that idea, explaining that the state’s home care program has grown because of an intentional strategy to keep people out of more expensive nursing homes.

    Flow of money could be restored — with documentation

    Kennedy and Oz said states could restart the flow of federal funding by providing documentation proving the payments in question were legitimate.

    A representative for California’s Medicaid program didn’t immediately respond to a request for comment. Officials in the state have previously acknowledged they are working with the federal government to provide the requested information.

    Oz said Minnesota had already returned documents to the federal government and they were being “reevaluated very carefully.”

    Kennedy also suggested Tuesday that he would extend the power to exclude providers from Medicaid, Medicare, and other federal health programs to CMS. In the past, that authority has rested solely with his department’s Office of the Inspector General.

    “This is going to be a full force multiplier,” HHS Inspector General Thomas March Bell told a news conference. “It’s going to create additional momentum, and it’s going to exclude additional bad actors.”

  • Alaska wants to seize a pilot’s plane over a 6-pack of beer. The Supreme Court will hear his case

    Alaska wants to seize a pilot’s plane over a 6-pack of beer. The Supreme Court will hear his case

    WASHINGTON — The Supreme Court agreed Monday to review an Alaska bush pilot’s claims that state authorities have tried to illegally seize his $95,000 airplane after a passenger brought a six-pack of beer on a flight bound for a dry village.

    The pilot, Kenneth Jouppi, sued to block his plane’s seizure after he was convicted of an alcohol-related misdemeanor charge. The Alaska Supreme Court ruled in the state’s favor that Jouppi’s plane was subject to criminal forfeiture laws.

    On Monday, however, the nation’s highest court agreed to hear Jouppi’s case. He argues that taking his 1969 Cessna would violate the Eighth Amendment’s Excessive Fines Clause. Arguments are expected in the fall.

    “I’m in my 80s now, and I’ve been fighting this for over a decade because I see it as my duty to ensure that the Bill of Rights actually means something in protecting against government overreach,” Jouppi said in a statement released by his attorneys at the Institute for Justice.

    In April 2012, Jouppi was preparing to fly a passenger from Fairbanks to a remote village, Beaver, where alcohol was banned. The passenger had packed beer with other groceries in her luggage. State Police troopers searched Jouppi’s plane before it departed and spotted a six-pack of Budweiser in a shopping bag.

    Jouppi, his company, and the passenger were charged with a misdemeanor offense of knowingly transporting an alcoholic beverage into a dry community. The passenger pleaded guilty. A jury convicted Jouppi and the company after a trial. A judge sentenced him to three days in jail.

    Jouppi’s attorneys say Alaska’s high court examined his conduct “purely in abstract terms” and didn’t evaluate whether it was part of a broader pattern of criminal activity. And they say it wasn’t.

    “Few excessive fines cases will present the issue so sharply; a decision upholding the forfeiture of an airplane for a six-pack is a self-recommending candidate for review,” lawyers from the Institute for Justice wrote in their appeal.

    In response, lawyers from the Alaska Attorney General’s office argued that the state Supreme Court’s “fact-bound decision” should be allowed to stand.

    “Courts across the country apply a multifactor test to determine whether a fine or forfeiture is grossly disproportional to the gravity of the offense,” they wrote. “Jouppi does not claim that the four-part standard applied by the Alaska Supreme Court is wrong, only that the court misapplied settled law by giving too much weight to some factors and not enough weight to others.”

    Jouppi’s attorneys argue that the ruling from the state’s highest court conflicts with case law established in other courts, including U.S. Supreme Court precedent.

    “The Excessive Fines Clause was built for cases like this,” they said.

    Alaska’s attorneys said Jouppi hasn’t shown how punishing him with forfeiture of his plane is “grossly disproportional to the gravity of his offense.”

    “Alcohol abuse is a serious problem in rural Alaska, and airplanes are sometimes the only realistic means to commit the crime of alcohol importation,” they wrote.

  • Smithsonian history museum chief rejects White House criticism of its leaders as radical activists

    Smithsonian history museum chief rejects White House criticism of its leaders as radical activists

    WASHINGTON — The director of the Smithsonian’s National Museum of American History pushed back Tuesday against a recent White House report that branded the institution’s leadership as radical activists who cannot be trusted.

    The testimony from Anthea M. Hartig came as President Donald Trump has engaged in a broad national effort to reshape the stories of America told by cultural institutions controlled or influenced by the federal government and, in particular, to purge diversity, equity, and inclusion elements from those narratives. Many historians are alarmed by the revisionism.

    “As we continue to fact check the report, we unwaveringly attest that it does not fairly or accurately characterize the full body of work at the museum,” Hartig told a House Oversight subcommittee. “There is always room for improvement. But I also know the beauty and the inspiration and the expertise that lies in our collections, our exhibits, and our programming.”

    Coinciding with the 250th anniversary of American independence, the White House Domestic Policy Council released a report on July Fourth arguing that the museum, a centerpiece of the sprawling Smithsonian complex on the National Mall, doesn’t tell history “in a way that is inspiring, unifying, and worthy of our great republic.”

    Republicans on the panel reiterated some of those concerns on Tuesday.

    “In the museum’s current telling, history is just an ongoing power struggle between oppressors and the oppressed,” said Rep. Tim Burchett (R., Tenn.). “The report makes clear that the museum’s woke exhibits and materials reflect a broader vision held by the museum leadership.”

    Hartig, the first woman to serve as director of the National Museum of American History, said the institution “does not take sides in America’s political debates.” She described the museum’s presentation of the nation’s story as an evolution intended to add voices, not erase history as detractors sometimes argue.

    “When historians talk about reframing a traditional narrative, we don’t mean erasing it,” she said. “We mean adding the evidence, the voices, the objects, that earlier tellings left out, so that more Americans can see themselves reflected in the national story.”

    The White House report argued that the museum “has refused to celebrate the Nation and its history.”

    “It has not created any exhibit dedicated to presenting a general narrative of American history or telling the story of any of our Founding Fathers, the Second Continental Congress, the Declaration of Independence, the American Revolutionary War, or the achievement of independence and the establishment of the constitutional rule of law,” the report said.

    But the museum opened an exhibit in May dubbed “In Pursuit of Life, Liberty, and Happiness” that displays 250 objects throughout the building to celebrate America’s 250th anniversary. The artifacts include the desk used by Thomas Jefferson to draft the Declaration of Independence, a Revolutionary War-era gunboat, and the Star Spangled Banner.

    Some Republicans on the panel on Tuesday acknowledged that the museum displays important material related to the anniversary but argued it was challenging to navigate. Rep. Michael Cloud (R., Texas) said he expected references to the Declaration of Independence to be more prominent during a recent visit.

    “I’m not saying it’s not there, but it’s hard to find,” he said.

    Hartig faced particular scrutiny from Republicans over an exhibit entitled “Girlhood (It’s Complicated),” which included a diary from a 13-year-old exploring issues including gender identity. The museum director said the exhibit, which ran from 2020 through 2023, included a label making clear it was not designed for children.

    Hartig’s future as the museum’s director hung over the hearing. Trump last year said he was firing the longtime leader of the National Portrait Gallery, another Smithsonian museum that, like the National Museum of American History, operates independently of the executive branch. The National Portrait Gallery’s director, Kim Sajet, nonetheless stepped down from the museum in the face of the White House pressure.

    At one point, Burchett asked Hartig why she should continue in her job. She responded simply that overseeing the museum is “the honor of my career.”

  • A tech innovator and an old guard general are the focus of Ukraine’s political crisis

    A tech innovator and an old guard general are the focus of Ukraine’s political crisis

    KYIV, Ukraine — One is a tech-savvy drone innovator with no military experience who became Ukraine’s youngest defense minister six months ago and was credited with contributing to successes in defending against Russia’s 4-year-old invasion.

    The other is a seasoned, Soviet-trained general more at home with traditional top-down command culture who led Ukraine’s armed forces.

    When their personalities and policies clashed, President Volodymyr Zelensky decided one of them had to go as part of a wider government reshuffle. He dismissed the popular young upstart, sparking protests across the country.

    A look at the contrasting careers of Defense Minister Mykhailo Fedorov and commander of Ukraine’s armed forces, Gen. Oleksandr Syrskyi.

    The youthful face of Ukraine’s drone war

    The 35-year-old Fedorov was credited with modernizing Ukraine’s drone program and changed military procurement rules in a crackdown on corruption. He argued that the military establishment was resisting changes demanded by the evolving war with Russia.

    The former tech entrepreneur drove forward Ukraine’s innovative drone technology that has recently reshaped the battlefield and has earned the interest of other countries, including the United States, as well as those in Europe and the Middle East.

    “We transformed Ukraine into a global tech leader and a defense powerhouse,” he said on social media after he lost his job last week in Zelensky’s government shake-up.

    Fedorov also took credit for restricting Russian military access to Elon Musk’s Starlink satellite internet services.

    Before becoming defense minister in January, Fedorov headed Ukraine’s digital transformation policies and introduced successful e-government platforms.

    Fedorov got that job after running the digital operations of Zelensky’s presidential election campaign in 2019. Before that, he ran a digital marketing company.

    After his dismissal, Fedorov publicly accused Syrskyi of blocking military reforms and insisting on a traditional command culture. That criticism echoed complaints from soldiers and veterans over heavy casualties in costly front-line assaults.

    Appearing at a news conference in a dark T-shirt and jeans, Fedorov accused Syrskyi of blocking reforms needed because “the war has changed completely” due to new technology.

    The Soviet-trained general dubbed ‘the Butcher’

    Protesters framed Fedorov’s removal as an example of Zelensky siding in the feud with an entrenched military old guard over a modernizer.

    Syrskyi, 60, was born when Ukraine was still part of the USSR. He attended Moscow Higher Military Command School and served in the Soviet Artillery Corps. He has long been associated with a Soviet-style, top-down command culture.

    He played a key role in some of Ukraine’s biggest victories in its war, overseeing the successful defense of Kyiv in the early days of the invasion in February 2022. Seven months later, Syrskyi was credited with orchestrating the counteroffensive in the Kharkiv region, one of the most significant Ukrainian victories in the war.

    “I’m not fighting the (defense) ministry. I’m fighting Russia,” Syrskyi said in a column published Monday in the Ukrainian military outlet Militarnyi that defended his conduct.

    “The General Staff has never opposed the ministry — we have cooperated and will keep cooperating with whichever minister the state appoints. Because in the army, you don’t get to choose who you serve with. In the army, you follow orders and do your job,” he said.

    Within the military, Syrskyi earned the nickname of “Butcher,” a label that gained wider currency during his command of the ill-fated defense of Bakhmut, one of the war’s longest battles that killed tens of thousands of people.

    His reputation took another hit after the Ukrainian outlet Babel published an investigation last month detailing allegations of abuse within the Skelia assault regiment, a unit closely associated with Syrskyi. It reportedly has suffered higher-than-average losses. The investigation documented dozens of deaths among recruits.

    The ouster brings protests in Ukraine, glee in Russia

    The protests of Fedorov’s ouster and the backlash against Syrskyi reached into the military, with the air force’s deputy commander resigning and warning it would weaken Ukraine’s air defenses. Veterans and soldiers on leave joined the protests. Many demonstrators said they wanted a new generation of generals who would prioritize preserving soldiers’ lives.

    The stakes are high for Zelensky. The outcry appeared to leave him open to accusations that by ousting Fedorov, he was trying to get rid of a possible political rival. The episode threatened to undermine his authority.

    Ukrainian political analyst Volodymyr Fesenko called Syrskyi “a more convenient and more comfortable” choice for Zelensky to keep in his government, adding that it turned out to be a “major miscalculation.”

    Zelensky “underestimated the extent to which part of Ukrainian society had come to see Fedorov as perhaps the main driver of the positive changes in Ukraine’s war against Russia,” added Fesenko, head of the Penta Center think tank.

    Russian war bloggers responded to Fedorov’s dismissal with glee, noting his role in masterminding long-range drone strikes on oil facilities that have caused a fuel crisis and midrange attacks that disrupted military logistics.

    Syrskyi, some noted with grudging respect, has built a string of defenses that have stalled Russian advances.

    Many Moscow commentators voiced hope that the controversy would fuel political infighting in Ukraine and weaken its military.