Elon Musk

Nov. 7 (UPI) — Tesla shareholders approved an unprecedented new package for CEO Elon Musk that could see him become the world’s first trillionaire.

The firm said 75% of shareholders with voting rights on Thursday backed Musk’s 10-year pay deal, which could net him $1 trillion over that time by boosting his stake in Tesla by more than 423 million shares.

The share bonanza is contingent on him delivering on a promise to drive up Tesla’s market capitalization five-fold from is current level of around $1.5 trillion to $8.5 trillion, roughly double the size of the Japanese economy.

Shareholders at the annual general meeting at Tesla HQ in Austin, Texas, voted it through on the recommendation of Tesla’s board, arguing Musk might quit if it were rejected and that the company could not afford to lose him.

Counsel from independent advisors Glass Lewis and Institutional Shareholder Services who said the “astronomical” deal should be rejected due to “unmitigated concerns surrounding the special award’s magnitude and design,” was largely ignored.

Addressing the meeting after the result, Musk thanked the board and shareholders, saying what Tesla was poised to do was not just “a new chapter in the future of Tesla, but a whole new book.”

Under the deal, Musk will receive the stock in tranches tied to delivering financial and production targets, including 20 million new electric vehicles rolling off production lines, 10 million full self-driving subscriptions​, 1 million Optimus humanoid robots and 1 million robotaxis in service.

The first block of stock gets paid to Musk when Telsa market capitalization reaches $2 trillion with the next nine awarded each time the company’s value rises by another $500 billion, up to $6.5 trillion.

Two additional rises in market capitalization, each of $1 trillion, bringing the value to $8.5 trillion, are required for the final two stock grants to kick in.

While the deal is performance-based, it’s not set in stone — with Musk still in line to earn more $50 billion even if he fails to meet the bulk of the targets — and includes riders for so-called “covered events” with the potential to impact Tesla’s future designs, manufacturing and sales.

These include natural disasters, wars, pandemics and changes to “international, federal, state and local law, regulations or other governmental action or inaction.”

In June 2024, Musk reincorporated Tesla in Texas, the company’s headquarters and center of operations, moving from Delaware six months after a court there struck down a $56 billion pay deal the board awarded to Musk in 2018, ruling it was “unfair” and that Musk held excessive power over the rules and size of the deal.

On the same day, shareholders voted to reinstate the package, at the time the largest in corporate history.

In December 2024, the Delaware judge in the case reaffirmed her ruling in favor of the complainant, shareholder Tornetta, and ordered Musk must return what he had already received from the package.

The board eventually awarded Musk a $29 billion “good faith” package in August, aimed at keeping Musk at the helm, that would see him granted 96 million shares after two years of service in a “senior leadership role” at Tesla.

Musk’s mega-deal on Thursday came three weeks after Tesla reported Tesla reported third quarter profits down 37%, despite a jump in revenue to a record $28.1 billion on stronger sales of its electric cars in the domestic market.

Shareholders approved the pay package with as much as 75 percent support on Thursday.

Tesla CEO Elon Musk has scored a resounding victory as shareholders have approved a pay package of as much as $878bn over the next decade, endorsing his vision of morphing the electric vehicle (EV) maker into an AI and robotics juggernaut.

Shares of Tesla rose more than 3 percent in after-hours trading after the shareholders voted on Thursday. The proposal was approved with more than 75 percent support.

Musk took to the stage in Austin, Texas, along with dancing robots. “What we are about to embark upon is not merely a new chapter of the future of Tesla, but a whole new book,” he said. “This really is going to be quite the story.”

He added: “Other shareholder meetings are like snooze fests, but ours are bangers. I mean, look at this. This is sick.”

Shareholders also re-elected three directors on Tesla’s board and voted in favour of a replacement pay plan for Musk’s services because a legal challenge has held up a previous package.

The vote, analysts have said, is a positive for Tesla’s stock, whose valuation hangs on Musk’s vision of making vehicles drive themselves, expanding robotaxis across the United States and selling humanoid robots, even though his far-right political rhetoric has hurt the Tesla brand this year.

A win for Musk was widely expected as the billionaire was allowed to exercise the full voting rights of his roughly 15 percent stake after the carmaker moved to Texas from Delaware, where a legal challenge has held up a previous pay rise.

The approval comes even after opposition from some major investors, including Norway’s sovereign wealth fund.

Tesla’s board had said Musk could quit if the pay package was not approved.

The vote will also allay investor concerns that Musk’s focus has been diluted with his work in politics as well as in running his other companies, including rocket maker SpaceX and artificial intelligence startup xAI.

The board and many investors who lent their endorsement have said the nearly $1 trillion package benefits shareholders in the longer run, as Musk must ensure Tesla achieves a series of milestones to get paid.

Goals for Musk over the next decade include the company delivering 20 million vehicles, having one million robotaxis in operation, selling one million robots and earning as much as $400bn in core profit. But in order for him to get paid, Tesla’s stock value has to rise in tandem, first to $2 trillion from the current $1.5 trillion, and all the way to $8.5 trillion.

Under the new plan, Musk could earn as much as $878bn in Tesla stock over 10 years. Musk would be given as much as $1 trillion in stock but would have to make some payments back to Tesla.

Nov. 4 (UPI) — President Donald Trump tapped Jared Isaacman to lead NASA on Tuesday just months after withdrawing his nomination of the billionaire entrepreneur to lead the space agency.

Trump announced the reversal in a social media post praising Isaacman who has twice flown to space on private missions.

“Jared’s passion for Space, astronaut experience, and dedication to pushing the boundaries of exploration, unlocking the mysteries of the universe, and advancing the new space economy, make him ideally suited to lead NASA into a bold new era,” Trump wrote.

However, Trump did not explain his aboutface on Isaacman, who saw his nomination withdrawn in May just ahead of the Senate’s confirmation vote. At the time, Trump cited a “thorough review of prior associations” as the reason for withdrawing Isaacman’s nomination.

Isaacman is a commercial astronaut who has ties to SpaceX, a space transportation and aeronautics company headed by business titan Elon Musk. Trump withdrew Isaacman’s nomination the same day Musk left the White House after his stint running the Department of Government Efficiency.

Musk’s departure precipitated a very public rift with Trump, who later took to social media to call his former political ally a “train wreck” who had sought to have “one of his close friends run NASA.” That close friend, Trump wrote in his post, was a “blue-blooded Democrat who had never contributed to a Republican before.”

Since withdrawing Isaacman’s nomination, Transportation Secretary Sean Duffy has been serving as interim NASA administrator.

Isaacman, for his part, responded with a post on X thanking Trump and expressing gratitude to the “space-loving community.”

“To the innovators building the orbital economy, to the scientists pursuing breakthrough discoveries and to dreamers across the world eager for a return to the Moon and the grand journey beyond–these are the most exciting times since the dawn of the space age– and I truly believe the future we have all been waiting for will soon become reality,” he wrote.

Nov. 3 (UPI) — Federal regulators have ordered Tesla to comply with an investigation into possibly defective door handles that reportedly led to trapped passengers.

The National Highway Traffic Safety Administration told the Elon Musk-owned Tesla that the federal government received scores of complaints on its electric vehicles.

As of Oct. 27, the NHTSA said it received 16 reports of exterior, retractable door handles becoming “inoperative due to low 12VDC battery voltage in certain MY 2021 Tesla Model Y vehicles.”

Reports indicated children were trapped in the cars in some cases, and owners unable to enter or exit vehicles due to battery that impeded door handle use.

A deadly 2024 crash in Wisconsin led to a lawsuit that claimed Tesla was negligent in its door handle designs.

Meanwhile, Tesla officials have until Dec. 10 to provide records to federal regulators.

Oct. 28 (UPI) — Tech mogul Elon Musk launched his own online encyclopedia with his company xAI, calling it Grokipedia as a rival to the non-profit Wikipedia.

Grokipedia, named for xAI’s chatbot Grok, uses Wikipedia as its source and it’s modeled like Wikipedia. But it has sanitized versions of pages about Musk, reporting nothing critical of him. The page says it has 885,279 pages.

The venture launched on Monday, with the site initially crashing then coming back online later. It has been reported by Musk as an improved and less biased version of Wikipedia.

Republican lawmakers and White House AI czar David Sacks have called Wikipedia “hopelessly biased.”

On X, Sacks said, “An army of left-wing activists maintain the bios and fight reasonable corrections. Magnifying the problem, Wikipedia often appears first in Google search results, and now it’s a trusted source for AI model training. This is a huge problem.”

The Wikimedia Foundation, which operates Wikipedia, said in a statement last month, “Wikipedia informs; it does not persuade.”

“Unlike newer projects, Wikipedia’s strengths are clear: it has transparent policies, rigorous volunteer oversight, and a strong culture of continuous improvement. Wikipedia is an encyclopedia, written to inform billions of readers without promoting a particular point of view,” Lauren Dickinson, a spokesperson for the Wikimedia Foundation, said in a statement.

“This human-created knowledge is what AI companies rely on to generate content; even Grokipedia needs Wikipedia to exist,” she added.

On Monday, Musk posted on X that the launch was “Grokipedia version 0.1,” but that “Version 1.0 will be 10X better, but even at 0.1 it’s better than Wikipedia imo.”

Oct. 23 (UPI) — Tesla reported profits were down 37% in the third quarter despite a jump in revenue to $28.1 billion on frontloading of sales driven by buyers racing to beat the deadline for a federal tax credit before it expired Sept. 30.

The tax credit, worth up to $7,500 on EV purchases, helped the firm buck a run of declining quarterly sales along with a new six-seat version of its popular Model Y midsize SUV that performed well in the Chinese market.

While sales of competitors, including Ford and Hyundai, still outpaced Tesla’s it also lured in buyers with interest-free finance and insurance contributions.

That helped overall income rise by just under $3 billion, compared with the same period last year, and $1.73 billion more than predicted by analysts, with the largest contribution still coming from vehicle sales.

Revenue from Tesla’s energy generation and storage division surged 44% to $3.42 billion.

However, net profit slumped from $2.17 billion in the third quarter of 2024, to just $1.37 billion this year, with the results sending the stock price lower.

Tesla’s shares were down more than 3% at $424.60 in out-of-hours trade on the NASDAQ before Thursday’s market open — but remained well above the 30-day low of $413.49 they hit Oct. 10. The stock is up 9% year-to-date.

The firm’s performance was dragged down by an ongoing slump in its European market, partly due to a public backlash against Musk and tough competition from rivals from the continent and beyond, such as Volkswagen and China’s BYD.

Tariffs on car parts and raw materials imposed by President Donald Trump and higher research and development costs were also factors as the company embarks on CEO Elon Musk‘s efforts for an increased focus on AI and robotics.

Chief Accounting Officer Vaibhav Taneja told investors on a conference call Wednesday that the hit to Tesla from import duties in the July to September period was in excess of $400 million.

Tesla said it aimed to meet its target to begin “volume production” of Cybercab, heavy-duty electric semi trucks and its new Megapack 3 battery energy storage system in 2026, with Musk saying he expected Cybercab to begin rolling off the production line in the second quarter.

“First generation production lines” for Tesla’s humanoid Optimus robot were currently under construction. Musk said the firm expected to unveil Optimus V3 in the first quarter.

Tesla posted its latest results as shareholders were preparing for a November vote to approve a new remuneration package for Musk of as much as $1 trillion, all in shares.

The deal would be conditioned on his delivering an ambitious turnaround program involving boosting market capitalization from around $1.38 trillion to an unprecedented $8.5 trillion by pivoting Tesla to concentrate on autonomous driving, AI and robotics.

Apple, Microsoft and NVIDIA, the current behemoths of the U.S. tech sector, have market caps in the $2.6 to $3.2 trillion range.

The electric carmaker had unveiled chief Elon Musk’s proposed $1 trillion compensation plan in September.

Tesla’s proposed $1 trillion pay package for CEO Elon Musk has come under renewed scrutiny after proxy adviser Institutional Shareholder Services (ISS) urged investors to vote against what could be the largest compensation plan ever awarded to a company chief.

ISS’s comments on Friday marks the second consecutive year that it has urged shareholders to reject a compensation plan for Musk.

Proxy advisers often sway major institutional investors, including the passive funds that hold large stakes in Tesla.

The ISS recommendation adds pressure on Tesla’s board before a closely watched November 6 shareholder meeting and renews scrutiny of Musk’s compensation after a Delaware court earlier voided his $56bn pay package.

Musk’s record Tesla pay plan could still hand him tens of billions of dollars even if he falls short of most of its ambitious targets, however, thanks to a structure that rewards partial achievement and soaring share prices.

Last month, Tesla’s board proposed a $1 trillion compensation plan for Musk in what it described as the largest corporate pay package in history, setting ambitious performance targets and aiming to address his push for greater control over the company.

ISS said that while the board’s goal was to retain Musk because of his “track record and vision”, the 2025 pay package “locks in extraordinarily high pay opportunities over the next ten years” and “reduces the board’s ability to meaningfully adjust future pay levels.”

Tesla’s shares rose after the compensation plan was unveiled last month, as investors believe the pay package would incentivise Musk to focus on the company’s strategy.

“Many people come to Tesla to specifically work with Elon, so we recognise that retaining and incentivising him will, in the long run, help us retain and recruit better talent,” Director Kathleen Wilson-Thompson said in a video posted to Tesla’s X handle on Friday.

Unlike the 2018 pay deal, Musk will be allowed to vote using his shares this time, giving him about 13.5 percent of Tesla’s voting power, according to a securities filing last month. That stake alone could be enough to secure approval.

The proxy adviser cited the “astronomical” size of the proposed grant, design features that could deliver very high payouts for partial goal achievement and potential dilution for existing investors.

Tesla did not immediately respond to a request for comment from the Reuters news agency.

ISS valued the stock-based award at $104bn, higher than Tesla’s own estimate of $87.8bn.

The grant would vest only if Tesla reaches market capitalisation milestones up to $8.5 trillion and operational targets, including delivery of 20 million vehicles, one million robotaxis and $400bn in adjusted core earnings.

The proxy adviser’s guidance on Musk’s pay was part of a wider set of voting recommendations issued on Friday.

As of 3:45pm in New York (19:45 GMT), Tesla’s stock was up 2.4 percent.

Elon Musk’s $56bn pay package from Tesla should have been restored by a vote of the company’s shareholders last year, a Tesla attorney has said to the Delaware Supreme Court in the United States.

The Tesla lawyer made his arguments on Wednesday as one of the biggest corporate legal battles entered its final stage after a lower court judge had in January 2024 rescinded the Tesla CEO’s record compensation. The company is also appealing a ruling by the lower court that rejected as legally invalid a vote by shareholders to restore the pay package.

“This was the most informed stockholder vote in Delaware history,” Jeffrey Wall, an attorney for Tesla, told the justices. “Reaffirming that would resolve this case.”

The case’s outcome could have substantial consequences for the state of Delaware, its widely used corporate law, and its Court of Chancery, a once-favoured venue for business disputes that has recently been accused of hostility towards powerful entrepreneurs.

The Court of Chancery ruling striking down Musk’s pay has become a rallying cry for Delaware critics. Chancellor Kathaleen McCormick ruled that the Tesla board lacked independence from Musk when it approved the pay package in 2018 and that shareholders lacked key information when they voted overwhelmingly in favour of it. As a result, she applied a demanding legal standard and found the pay unfair to investors.

Musk did not attend the arguments, which were held in a special court to accommodate the 65 people in attendance, mostly lawyers.

The defendants, current and former Tesla directors, denied wrongdoing and said McCormick misinterpreted the facts and the law.

Dexit

Tesla argued in Dover, Delaware that the five justices on Delaware’s high court had three avenues to reverse the lower court ruling.

They could find that Musk, who owned 21.9 percent of Tesla stock in 2018, did not control the board pay negotiations and that shareholders were fully informed when they voted to approve it that year. They could determine that rescinding the pay was an improper remedy because it did not undo the work that Musk had done or the gains that shareholders had received. Or they could determine that last year’s vote demonstrated shareholders wanted to accept the pay deal, despite the legal flaws.

“Shareholders in 2024 knew exactly what they were voting for,” Wall said.

Greg Varallo, an attorney for Richard Tornetta, the small investor who brought the case in 2018, said if the court accepted ratification, it would allow a party to change the outcome after a court case had run its course. “Lawsuits would be interminable”, he told the justices.

Varallo tried to convince the justices the lower court ruling was a result of careful fact-finding and based on settled law. “There is nothing extraordinary about this trial opinion,” he said. “What makes it truly extraordinary is that it addresses the largest pay package in human history, awarded to the richest man on earth, who is also one of the most powerful men on earth.”

After the Musk pay ruling, large companies, including Tesla, Dropbox, and the venture capital firm Andreessen Horowitz, switched their legal homes to Texas or Nevada, where courts are friendlier toward directors. Delaware lawmakers responded to the corporate departures, a trend known as “Dexit,” by overhauling its corporate law.

If Musk loses the appeal, he will still reap tens of billions of dollars in stock from the electric vehicle (EV) company, which agreed in August to a replacement deal if his 2018 plan is not restored. Tesla has said the replacement plan will cost $25bn or more in accounting charges.

The company said the replacement award was meant to focus the attention of Musk, who said earlier this year that he was forming a new US political party, on transitioning Tesla to robotics and automated driving. Tesla is now incorporated in Texas, where it is far more difficult for a shareholder to challenge board decisions.

New pay plan

Tesla’s board last month proposed a $1 trillion compensation plan, highlighting confidence in Musk’s ability to steer the company in a new direction, even as Tesla loses ground to Chinese rivals in key markets amid softening EV demand.

The justices are considering the appeal of the pay ruling as well as the $345m legal fee that McCormick ordered Tesla to pay to the attorneys for Tornetta, who held just nine Tesla shares when he sued to block the pay deal. The court typically takes months to rule.

Tesla estimated in 2018 that the stock options plan would be worth $56bn if the company met operational and financial goals, which it did. Because the stock continued to appreciate, the options are currently worth closer to $120bn, by far the largest executive compensation ever. Musk is the world’s richest person with a fortune of around $480bn, according to Forbes.

The defendants have argued that McCormick erred in finding social and business ties to Musk compromised their independence, and said Tesla shareholders were informed of the economic terms of the pay deal before they approved the plan. The directors said she should have reviewed the pay package under the “business judgment” standard, which protects directors from second-guessing by courts.

The directors have long argued the pay package performed as hoped – it focused the attention of Musk, a serial entrepreneur, and he transformed Tesla from a startup into one of the world’s most valuable companies.

Oct. 13 (UPI) — SpaceX is planning the 11th flight test on Monday of its Starship, its two-stage, heavy-lift launch vehicle designed to one day take humans back to the moon and eventually to Mars.

The launch window will open at 6:15 p.m. CT at the company’s Starbase compound in Texas near the Gulf of Mexico and about 20 miles from Brownsville.

A live-streamed broadcast of the test flight will begin about 30 minutes prior to liftoff.

In August, the Elon Musk-owned SpaceX succeeded in its third attempt to launch the 10th Starship test mission after SpaceX officials scrubbed two prior launches.

Monday’s flight is expected to build on the “successful demonstrations” from its 10th test in August, according to officials, but with flight experiments “gathering data for the next generation Super Heavy booster, stress-testing Starship’s heatshield, and demonstrating maneuvers that will mimic the upper stage’s final approach for a future return to launch site.”

But on Monday, the company reiterated that the flight schedule was a “dynamic” process and “likely to change” as is the case with all other developmental testing.

Oct. 6 (UPI) — Tesla CEO Elon Musk made two posts on X that appear to tease a new car or relaunch of an existing car for “10/7.”

Because of the teasers, Tesla stock rose by 4.72%, on pace for its largest one-day percentage gain in a little over a week, MarketWatch said.

Theories about what the teasers mean include that it could be the next-generation Roadster that Musk has been touting for years, or that Tesla is going to release a mass-market model.

Musk teased the next-gen Roadster in 2017 and 2018. He has since hyped the vehicle repeatedly and, in September, said on X that “the new Roadster is something special beyond a car.” He didn’t elaborate.

Tesla has been saying a cheaper mass-market car will be released this year. But Musk has said this lower-cost vehicle will be a stripped down Model Y, NBC reported.

While Tesla stock has risen recently, it took a hit earlier this year when Musk began his moves into politics, which soured some on Tesla.

In mid-September, Musk invested about $1 billion into Tesla, which made the market jump by about $30 per share.

The Anti-Defamation League (ADL) has become the target of a sustained right-wing backlash after the US-based Jewish advocacy group included an organisation founded by slain right-wing figure Charlie Kirk in its online database on extremism.

The blowback escalated sharply on Wednesday after FBI Director Kash Patel announced that the bureau would sever ties with the ADL, accusing the prominent advocacy group of spying on Americans.

Tech billionaire Elon Musk’s post calling the ADL a “hate group” set off a firestorm of criticism online, forcing the group to scrap the “Glossary of Extremism and Hate”, which contained more than a thousand entries on groups and movements with connections to hateful ideologies.

But that has not subdued the backlash from conservatives – the base of the governing Republican Party.

So, what’s ADL’s online database, and why has it triggered MAGA (Make America Great Again) rage? And how has the nonprofit, which backed the crackdown on pro-Palestine campus protests by the administration of US President Donald Trump, ended up ruffling feathers across the political spectrum?

What is ADL?

The ADL is one of the oldest and most influential Jewish advocacy groups in the United States. It was founded in 1913 by members of the B’nai B’rith – Hebrew for “Sons of the Covenant”, a Jewish fraternal organisation – to counter anti-Semitism and prejudice against Jews.

The group, which calls itself “a global leader in combating antisemitism”, started with its original mission, “to stop the defamation of the Jewish people and to secure justice and fair treatment to all”.

Over time, the ADL grew into a national force with branches spread across the country. It works closely with law enforcement agencies to train officers on identifying bias-motivated violence. It also develops programmes and resources on anti-Semitism and the Holocaust, partnering with schools, universities and communities.

Its monitoring of right-wing racist and anti-LGBTQ+ extremism also allowed it space within the US’s liberal Jewish community.

Since its inception, the ADL has argued that anti-Zionism could lead to anti-Semitism. But in the past couple of decades, the nonprofit has been pushing to adopt the International Holocaust Remembrance Alliance (IHRA) definition of anti-Semitism, which conflates some criticism of Israel with anti-Semitism. The ADL has also backed a controversial resolution passed by the US Congress that defined anti-Zionism as anti-Semitism.

The ADL is a well-resourced civil society group, with around $163m in revenue last year alone.

What caused the backlash against ADL?

The recent backlash was triggered after several influential right-wing social media accounts began posting screenshots of the ADL’s entry on Kirk’s organisation, Turning Point USA, in its “Glossary of Extremism”.

Kirk, who is credited with galvanising young voters for Trump, was assassinated last month.

Though Turning Point USA was not listed as an “extremist organization”, the nonprofit had documented incidents where its leadership and affiliated members had made “racist or bigoted comments”.

ADL’s entry on “Christian Identity” – which the nonprofit identified as an extremist theology that promotes white supremacy – also drew widespread criticism from right-wing influencers.

The ADL has long positioned itself as a nonpartisan watchdog. But conservatives have increasingly argued that it has become politically aligned with progressive causes, including the group’s partnerships with social media companies in moderating hate-speech policies.

Jonathan Greenblatt, the ADL’s CEO, has been accused of “weaponising anti-Semitism” to attack critics of liberal policies and of conflating right-wing populism with hate speech in the past.

In the weeks following Kirk’s assassination, the US has seen a wave of right-wing backlash against public figures who criticised him, with several commentators and journalists facing professional repercussions – including the brief suspension of a television show by comedian Jimmy Kimmel and the firing of Washington Post columnist Karen Attiah.

What was in ADL’s online database?

The ADL “Glossary of Extremism and Hate” was an online, searchable database launched in March 2022 by the organisation’s Center on Extremism. After the backlash from right-wing influencers, mostly from the MAGA camp, the ADL quietly moved to retire its database from the public.

The database contained more than 1,000 entries providing overviews and definitions of terms, symbols, slogans, tactics, publications, groups, and individuals associated with various extremist ideologies, hate movements, and related activities.

The resource covered a broad spectrum, including white supremacism, anti-Semitism, anti-Muslim bigotry, and extremism on the far right and far left. The glossary reportedly included groups like the Proud Boys, the Nation of Islam, the Oath Keepers, and others.

The ADL, in its statement, argued that “an increasing number of entries in the Glossary were outdated”, and “a number of entries [were] intentionally misrepresented and misused”.

The organisation further said that it wanted to focus on exploring “new strategies and creative approaches to deliver our data and present our research more effectively”.

The list is no longer publicly available on ADL’s site, and the original URL now redirects to the organisation’s home page.

How did Musk get into this?

The online smear campaign gained traction on Sunday night after billionaire Elon Musk started interacting with posts targeting the ADL.

Musk, who has more than 227 million followers on X, said, “The ADL hates Christians, therefore it is is [sic] a hate group.”

The ADL’s operations encourage murder, Musk said in another reply to a post on X, formerly Twitter, which he bought in 2022 after paying $44bn.

Musk’s attacks on the ADL still came as a shock to some. ADL’s Greenblatt has, in fact, praised Musk several times, including in 2023 for saying that X would block use of the pro-Palestinian slogan “from the river to the sea”.

That applause reportedly led to the resignation of a top ADL executive, Yael Eisenstat, who headed the nonprofit’s Center for Technology and Society, and the group lost several donors.

The ADL has also criticised Musk, saying X’s Grok chatbot promoted pro-Nazi ideology. The chatbot has praised Adolf Hitler, and called itself “MechaHitler”.

Former and current ADL employees have told Jewish Currents, a US-based progressive publication, that Greenblatt has repeatedly given a pass to Musk’s white nationalist sympathies if they help the ADL fight anti-Zionism – a pattern that reportedly escalated after the October 7, 2023 Hamas attack on Israel, followed by Israel’s now two-year-long war on Palestine, which has been dubbed genocide by an United Nations inquiry panel.

Then again, earlier this year, Greenblatt came to Musk’s defence after several Jewish lawmakers and civil society groups condemned Musk’s fascist-style salutes on stage during a speech after Trump’s re-election.

The ADL had posted: “It seems that Elon Musk made an awkward gesture in a moment of enthusiasm, not a Nazi salute.”

Why did the FBI snap ties with ADL?

The FBI’s decision to cut ties with the ADL also marks a sharp rupture in a partnership that had lasted for decades, at least since the 1940s, rooted in joint efforts to train law enforcement officers and monitor extremist threats across the US.

The move was announced by FBI chief Patel just 24 hours after Musk joined the online campaign, accusing the ADL of having “become a political front masquerading as a watchdog”.

Patel also targeted James Comey, an American lawyer who served as the director of the FBI from 2013 to 2017, during the era of US President Barack Obama.

“James Comey wrote ‘love letters’ to the ADL and embedded FBI agents with them – a group that ran disgraceful ops spying on Americans,” Kash said in a post on X, without offering any more clarity on this.

“That era is OVER. This FBI won’t partner with political fronts masquerading as watchdogs,” he concluded.

Why is ADL accused of pro-Israel bias and of suppressing pro-Palestinian activism?

The ADL has also faced criticism from left-wing activists for exhibiting a pro-Israel bias and suppressing pro-Palestinian activism, particularly in the wake of widespread protests across US campuses over the Gaza war that has killed more than 67,000 Palestinians and turned the Palestinian enclave into ruins.

The advocacy group has dubbed grassroots protests against Israel’s genocidal campaign in Gaza as “pro-Hamas activism”, while its CEO Greenblatt has described the Jewish groups calling for a ceasefire as “the ugly core of anti-Zionism”.

The ADL also publicly campaigned against campus protests last year, describing some demonstrations as “antisemitic hate rallies”. The group urged university administrators and government officials to take action against protest organisers, and pressured institutions to censor or discipline dissenting voices.

ADL’s Greenblatt praised Trump for withholding $400m in grants to Columbia University after campus protests and complimented the arrest of Columbia pro-Palestinian activist Mahmoud Khalil.

“We appreciate the Trump Administration’s broad, bold set of efforts to counter campus antisemitism – and this action further illustrates that resolve by holding alleged perpetrators responsible for their actions,” the ADL posted above a tweet about Khalil’s arrest.

The ADL’s collaboration with the US administration has dented its credibility, and several staff have resigned, citing the organisation’s overt emphasis on pro-Israel advocacy.

“The ADL has a pro-Israel bias and an agenda to suppress pro-Palestinian activism,” an ADL employee told The Guardian newspaper last year.

Musk, considered the world’s richest man, had argued his ‘incredibly busy’ schedule made attending the Washington, DC, case a burden.

Billionaire Elon Musk has failed to persuade a federal judge in Washington, DC, to move a Securities and Exchange Commission (SEC) lawsuit over the late disclosure of his growing Twitter stake to Texas after saying he was too busy to defend himself in the nation’s capital.

US District Judge Sparkle Sooknanan said on Thursday she “takes Mr. Musk’s convenience seriously” but that the world’s richest person has “considerable means” and spends at least 40 percent of his time outside Texas.

“Indeed,” she wrote, “Mr. Musk’s brief itself indicates that he has spent substantial time here this year,” referencing when he ran the Department of Government Efficiency (DOGE) under President Donald Trump.

Sooknanan also said Texas judges have bigger caseloads than in her court and she could proceed with “reasonable alacrity”.

In seeking to move the case, Musk said he was an “incredibly busy individual” who works 80-plus-hour weeks and often sleeps in his office or factory. He argued that litigating in Washington, DC, would impose “substantial burdens”.

Lawyers for Musk did not immediately respond to requests for comment from the Reuters news agency. A spokesperson for the SEC had no comment, citing the government shutdown that began on Wednesday.

Musk’s fortune surpassed $500 billion for the first time that day, according to the publication Forbes.

The SEC sued Musk in January, saying his 11-day delay in revealing his initial 5-percent Twitter stake in early 2022 let him buy more than $500m of shares at artificially low prices.

It wants Musk to pay a civil fine and give up $150m he allegedly saved at the expense of unsuspecting investors. Musk is seeking to dismiss the case. He bought all of Twitter for $44bn in October 2022 and renamed it X.

Musk lives in Austin, Texas, and his companies Tesla, SpaceX and the Boring tunnel business are based in the state.

Sooknanan rejected Musk’s alternative proposal to move the SEC case to Manhattan, where former Twitter shareholders are suing him.

Sept. 29 (UPI) — YouTube has agreed to pay $24.5 million, toward the construction of a new White House ballroom, to settle a lawsuit by President Donald Trump for suspending his channel in 2021 following the Jan. 6, riots.

The online video platform, owned by Alphabet, will pay $22 million from the settlement to the nonprofit Trust for the National Mall, which is “dedicated to restoring, preserving and elevating the National Mall, to support the construction of the White House State Ballroom,” according to court documents. The ballroom is estimated to cost $200 million, according to the White House.

The other $2.5 million from YouTube’s settlement will go to other plaintiffs, including the nonprofit American Conservative Union.

YouTube is the third tech platform to settle with Trump, who also settled with Meta and Twitter for banning his accounts in 2021. Trump settled with Meta for $25 million and with Twitter, renamed X, for $10 million.

All three platforms claimed Trump’s posts after the U.S. Capitol riots risked inciting further violence. Trump said the suspensions amounted to censorship. All of his accounts were reinstated after tech leaders took a more supportive stance, with Elon Musk of X, Meta’s Mark Zuckerberg and Alphabet chief executive officer Sundar Pichai attending Trump’s inauguration in January.

Trump also has received settlements from media outlets, including CBS and ABC News. ABC and Disney settled with the president for $15 million toward his future presidential library after he accused the network and anchor George Stephanopoulous of defamation. And Paramount Global paid out $16 million for CBS’ editing of a Kamala Harris interview on “60 Minutes.”

Last week, YouTube said it would reinstate a number of banned accounts, which had violated the channel’s now defunct rules about posting misinformation about COVID-19 and the 2020 election.

YouTube “values conservative voices on its platform and recognizes that these creators have extensive reach and play an important role in civic discourse,” the platform said.

Sept. 20 (UPI) — TikTok’s U.S. operations will be controlled by Americans in a planned deal to spin off the wildly popular social media platform from its Chinese owners, White House press secretary Karolina Leavitt said Saturday.

Appearing Saturday on Fox News, Leravitt said Americans will be on six of the seven board seats and the algorithm of the app would also not be controlled by China.

There have been concerns about potential national security risks and data privacy issues linked to the app, owned by the Chinese company ByteDance, including Chinese government surveillance of Americans and the Chinese government possibly influencing the content of 137 million monthly active U.S. users.

Overall, there are more than 1.8 billion monthly active users worldwide.

“This deal means that TikTok will be majority-owned by Americans in the United States,” Leavitt said, exactly nine months after Donald Trump was inaugurated for his second term as U.S. President.

U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng in Madrid this week worked to spin off ByteDance’s U.S. TikTok operations.

On Friday, Trump said he finalized the deal in a call with China’s President Xi Jinping, posting on Truth Social, and saying he “appreciate [sic] the TikTok approval.”

Trump signed four 90-day extensions, including one Tuesday.

“So all of those details have already been agreed upon, now we just need this deal to be signed and that will be happening, I anticipate, in the coming days,” Leavitt said.

Though the deal needs to be signed by all the parties, she said there is a 100% chance it will happen

Financial details of the deal have not been released.

With the algorithm, the value of U.S. operations is difficult to calculate, Forbes said in January. Wedbush analyst Dan Ives believes that $300 billion “could be conservative,” though others list the valuation somewhere in between from $20 billion.

On Thursday, Trump said that the United States would get a “tremendous fee” for its part in brokering the deal.

“The people that are investing in it are among the greatest investors in the world – the biggest, the richest and they’ll do a great job,” Trump said at a joint news conference Thursday in England with British Prime Minister Keir Starmer. “We’re doing it in conjunction with China, but the United States is getting a tremendous fee-plus – I call it a fee-plus — just for making the deal and I don’t want to throw that out the window.”

In the arrangement, China’s ByteDance will hold less than 20% with the new investor group, which includes Oracle Corp., Andreessen Horowitz and the private equity firm Silver Lake Management LLC.

Oracle, which is a multinational technology company headquartered in Austin, Texas, will serve as TikTok’s security provider and monitor the app for safety, working with the U.S. government. Data of American users will be stored in the U.S. with no access by China, Leavitt said.

“The data and privacy will be led by one of America’s greatest tech companies, Oracle, and the algorithm will also be controlled by America as well,” Leavitt said.

Larry Ellison, the co-founder of Oracle, became the world’s richest person on Sept. 10, but Elon Musk was back on top at the end of the trading day, according to Bloomberg’s Billionaires Index. Ellison’s wealth now is at $367 billion, behind Musk at $440 billion

American board members will have national security and cybersecurity credentials, and the board member chosen by ByteDance will be excluded from the security committee.

The platform, which began in 2016 as Douyin, is projected to have $18.49 billion in ad revenue in 2025, according to Demandsage.

Sept. 14 (UPI) — Pope Leo XIV said there has been a “huge learning curve” in his first several months as the new pontiff, and declared that about some aspects of his role are akin to jumping “in on the deep end of the pool very quickly,” in remarks to released to coincide Sunday with his 70th birthday.

He also lamented the growing income gaps between the world’s working class and company CEOs, pointing out that Elon Musk could soon become the globe’s first trillionaire.

“If that is the only thing that has value anymore, then we’re in big trouble,” the first American pope said in his comments released by the Vatican.

The interview was conducted over the summer of Elise Ann Allen, a correspondent for the Vatican news service, and the author of an upcoming biography on the pontiff. The remarks were published on Allen’s website, the Crux, and in the Peruvian daily El Comerico.

Leo said he felt both American and Peruvian, noting his dual citizenship, and his 20 years of missionary work in Peru. He said his time there gave him a great appreciation of the church in Latin America and for Pope France’s ministry, the first pope from South America.

Francis promoted Leo to the Vatican’s top job in 2023, raising speculation that the then pope views Leo as a successor, though Leo said he felt unprepared for the responsibilities of the role.

“There’s still a huge learning curve ahead of me,” he said, adding that he felt confident as a pastor, but noted that the job of pontiff was that of a world leader, which was a challenge.

The excerpts of the interview were released Sunday as Leo celebrated his 70th birthday during the traditional noon blessing at the Vatican.

There were multiple, giant “Happy birthday” banners in multiple languages displayed by believers throughout St. Peter’s Square. Groups of Peruvian believers, some donning traditional dance attire, celebrated.

“Dear friends, it seems you know today I have turned 70,” Leo said amid choruses of cheers from onlookers. “I thank the Lord, my parents and all those who remembered me in their prayers.”

Sept. 13 (UPI) — More than 100,000 Britons who are frustrated with the United Kingdom’s immigration policies marched in central London during a Saturday afternoon and evening event billed as “Unite the Kingdom.”

The event was organized by Stephen Yaxley-Lennon aka Tommy Robinson and included a video address from Elon Musk.

Musk, 54, accused the U.K. government of not protecting “innocent people, including children who are getting gang-raped,” The Times reported.

“There’s this genuine risk of rape and murder and the destruction of the country and the dissolution of the entire way of life,” Musk told the protesters.

“If you weren’t under a massive attack, then people should go about their business and live their lives, but unfortunately, if the fight comes to you, you don’t have a choice,” he continued.

“Whether you choose violence or not, violence is coming to you,” Musk added. “You either fight back or you die.”

An estimated 110,000 people participated in the protest march from Waterloo Bridge to Whitehall and at times clashed with police, 26 of whom were injured when pelted with bottles and other projectiles, according to The BBC.

Four officers suffered serious injuries, and at least 25 people were arrested for what London’s Metropolitan Police called “wholly unacceptable” violence.

The Metro Police deployed 1,000 officers, who were assisted by 500 others from nearby jurisdictions.

“There is no doubt that many came here to exercise their lawful right to protect, but there were many who came intent on violence,” Matt Twist, assistant commissioner of the London Metropolitan Police, told the BBC.

A counter-protest called “Stand Up to Racism” drew about 5,000 participants and was organized by Women Against the Far Right, The Guardian reported.

Those protesters carried placards saying, “Refugees Welcome” and “Oppose Tommy Robinson,” among others.

The spectrum purchase allows SpaceX to expand the cell network’s capacity by ‘more than 100 times’ and will help ‘end mobile dead zones’.

SpaceX will buy wireless spectrum licences from EchoStar for its Starlink satellite network for about $17bn, a major deal crucial to expanding Starlink’s nascent 5G connectivity business.

The Elon Musk-owned aerospace company announced the purchase on Monday.

The companies also agreed to a deal that will enable EchoStar’s Boost Mobile subscribers to access Starlink direct-to-cell service to extend satellite service to areas without service.

The spectrum purchase allows SpaceX to start building and deploying upgraded, laser-connected satellites that the company said will expand the cell network’s capacity by “more than 100 times”.

Gwynne Shotwell, president and COO of SpaceX, said the deal will help the company “end mobile dead zones around the world … With exclusive spectrum, SpaceX will develop next-generation Starlink Direct to Cell satellites, which will have a step change in performance and enable us to enhance coverage for customers wherever they are in the world.”

The push comes amid fast-rising wireless usage. In 2024, Americans used a record 132 trillion megabytes of mobile data, up 35 percent over the prior all-time record, the Cellular Telecommunications Industry Association (CTIA) said on Monday.

SpaceX has launched more than 8,000 Starlink satellites since 2020, building a distributed network in low-Earth orbit which has seen demand from militaries, transportation firms and consumers in rural areas.

Roughly 600 of those satellites – which SpaceX calls “cell towers in space” – have been launched since January 2024 for the company’s direct-to-cell network, orbiting closer to Earth than the rest of the constellation.

Crucial to those larger satellites’ deployment is Starship, SpaceX’s giant next-generation rocket that has been under development for roughly a decade. Increasingly complex test launches have drawn the rocket closer to its first operational Starlink missions, expected early next year.

The deal comes months after the US Federal Communications Commission (FCC) questioned EchoStar’s use of its mobile-satellite service spectrum and raised concerns about whether it was meeting its obligations to deploy 5G in the country.

EchoStar said it anticipates that the transaction with SpaceX and the AT&T deal will resolve the FCC’s inquiries.

An FCC spokesperson said the “deals that EchoStar reached with AT&T and Starlink hold the potential to supercharge competition, extend innovative new services to millions of Americans, and boost US leadership in next-gen connectivity”.

The company in August sold some nationwide wireless spectrum licences to AT&T for $23bn. AT&T agreed to acquire 50 MHz of nationwide mid-band and low-band spectrum.

US President Donald Trump previously prodded EchoStar and FCC Chair Brendan Carr to reach an amicable deal for the company’s wireless spectrum licences.

Underused airwaves

SpaceX will pay up to $8.5bn in cash and issue up to $8.5bn in stock. SpaceX has also agreed to cover roughly $2bn in interest payments on EchoStar’s debt obligations through late 2027.

After the sale, EchoStar will continue operating its satellite television service Dish TV, streaming TV platform Sling, internet service Hughesnet and its Boost Mobile brand.

SpaceX had aggressively pressed the FCC to reallocate underused airwaves for satellite-to-phone service after alleging EchoStar failed to meet certain obligations.

In a letter to the FCC in April, SpaceX said EchoStar’s spectrum in the 2 gigahertz band “remains ripe for sharing among next-generation satellite systems” and that the company has left “valuable mid-band spectrum chronically underused”.

The deal with EchoStar will allow SpaceX to operate Starlink direct-to-cell services on frequencies it owns, rather than relying solely on those leased from mobile carriers like T-Mobile.

In May, the FCC approved Verizon’s $20bn deal to acquire fibre-optic internet provider Frontier Communications. Verizon spent $5bn to acquire and clear key spectrum in 2021.

The news sent shares of EchoStar surging 14.7 percent as of 1pm in New York (17:00 GMT). Shares of US wireless carriers are trending downwards. AT&T is 1.6 percent lower and T-Mobile is down by 2.2 percent. Verizon as well is down 1.8 percent.

Sept. 5 (UPI) — Tesla is preparing to offer Elon Musk a new pay and incentives plan that would give him more control, more shares and up to nearly $1 trillion in compensation.

Musk is already the world’s wealthiest person, and this new plan is worth about $975 billion.

In order to cash in on the full amount, Musk would have to multiply Tesla’s stock value by eight times over the next decade. All of his compensation would be in Tesla shares. Stockholders will vote on the package at a Nov. 6 annual shareholders’ meeting. Tesla also said in the filing Friday that it will ask shareholders to vote on whether to invest in Musk’s new xAI.

“Retaining and incentivizing Elon is fundamental to Tesla achieving these goals and becoming the most valuable company in history,” Robyn Denholm, chair of the Tesla board, and Kathleen Wilson-Thompson, a director on the board, said in a letter to shareholders.

Musk’s net worth is more than $400 billion, according to Forbes. This compensation plan would add around $900 billion. If he raises Tesla’s stock value from $1.1 trillion to $8.5 trillion, it would be the highest compensation in history.

He would also have to stay at Tesla for 7.5 years to cash in his shares, and 10 years to get the full amount. He would also have to deploy 1 million autonomous taxis and humanoid robots, plus see a more than 24-fold increase in profits.

“If he performs, if he hits the super ambitious milestones that are in the plan then he gets equity — it’s 1% for each half a trillion dollars of market cap, plus operational milestones he has to hit in order to do that,” Denholm said on CNBC’s Squawk Box.

As companies around the world work to create electric cars, self-driving cars and robots, these milestones will be an enormous challenge.

Many shareholders are disillusioned with Musk over his recent performance. Tesla has seen profits slow in the past year as his behavior and his foray into politics hurt the company’s stock prices.

In January, a Delaware Chancery Court judge ruled against Musk’s 2018 compensation package and ordered him to return what he’d already earned from it.

Each of the 96 million shares received in the deal trades at just over $300. Musk would have to pay $23.34 for each of those shares, equal to the amount he was expected to pay when he was first awarded his 2018 compensation package. Tesla is appealing the ruling.

In early August, ​​Tesla’s board gave Musk a $29 billion pay package.

The new package was a “good faith” award designed to keep Musk at the helm of the company.

It would give him 96 million shares of the company that he could take after two years of service in a “senior leadership role” at Tesla. Musk hinted last month that he wanted more ownership at Tesla beyond his 13% stake to prevent his ouster by “activist” shareholders.

Sept. 4 (UPI) — Several leaders from the tech sector will travel to the White House on Thursday for the fist event in the newly renovated Rose Garden.

Guests expected to attend include Apple CEO Tim Cook, Microsoft founder Bill Gates Meta founder Mark Zuckerberg and OpenAI founder Sam Altman, among more than two dozen other prominent tech and business guests.

Venture capitalist David Sacks, who has served as the White House czar on AI and cryptocurrency, will also be in attendance.

According to a press release, First Lady Melania Trump will host a meeting of the White House Task Force on Artificial Intelligence Education, at which she will speak, alongside Task Force members and leaders from the private AI technology sphere.

President Donald Trump will then lead an event in the Rose Garden with the guests, which will be the first such happening there since it was renovated under the direction of the Trumps.

“The Rose Garden Club at the White House is the hottest place to be in Washington, or perhaps the world,” White House spokesperson Davis Ingle said in a statement to The Hill.

“The president looks forward to welcoming top business, political, and tech leaders for this dinner and the many dinners to come on the new, beautiful Rose Garden patio,” he added.

Those in attendance will see changes to the Rose Garden such as pavement over the former grassy space, with umbrella-shaded tables set in similar fashion to patio arrangements found at Trump’s Mar-a-Lago property in Florida.

One top tech leader not on the guest list is Tesla CEO and SpaceX founder Elon Musk, who served as an advisor to Trump and the head of the Department of Government Efficiency, or DOGE.

Trump and Musk famously feuded shortly after Musk left working with the government.

President Donald Trump’s administration wants to overhaul the nation’s visa programme for highly skilled foreign workers.

If the administration does what one official described, it would change H-1B visa rules to favour employers that pay higher wages. That could effectively transform the visa into what one expert called “a luxury work permit” and disadvantage early-career workers with smaller salaries, including teachers. It could also upend the current visa programme’s lottery system used to distribute visas to eligible foreign workers.

“This shift may prevent many employers, including small and midsize businesses, from hiring the talent they need in shortage occupations, ultimately reducing America’s global competitiveness,” said David Leopold, a former president of the American Immigration Lawyers Association whose practice includes representing employers in the H-1B process.

It’s hard to find US workers in certain types of specialty fields, including software engineers and developers and some STEM positions.

A White House office proposed the change on August 8, Bloomberg Law reported. Once the proposal appears in the Federal Register – the daily public report containing notices of proposed federal rule changes – the plan will become subject to a formal public comment period. It could be finalised within months, although it is likely to face legal challenges.

Joseph Edlow, the director of US Citizenship and Immigration Services, told The New York Times in July that H-1B visas should favour companies that plan to pay foreign workers higher wages. The proposal Bloomberg Law described was in line with that goal.

PolitiFact did not see a copy of the proposal, and the White House did not respond to our questions. But the Department of Homeland Security submitted the proposed rule to a Trump administration office in July, the Greenberg Traurig law firm wrote.

Trump sought to reform the H-1B program during his first term but made limited progress. In January 2021, near the end of Trump’s term, the Department of Homeland Security published a final rule similar to the current proposal, but the Biden administration did not implement it.

Work visas were not a central part of Trump’s 2024 immigration platform, but it was a point of debate in the weeks before he took office, with billionaire businessman Elon Musk – a megadonor to Trump who would briefly serve in his administration – speaking in favour of them.

What are H-1B visas?

The H-1B visa programme lets employers temporarily hire foreign workers in specialty fields, with about two-thirds working in computer-related jobs, according to the Congressional Research Service. Most H-1B visa holders come from India, followed by China.

Currently, prospective H-1B employers must attest that they will pay the H-1B worker actual wages paid to similar employees or the prevailing wages for that occupation – whichever would result in the highest pay.

To qualify for the non-immigrant visa, the employee must hold a specialised degree, license or training required by the occupation. The status is generally valid for up to three years and renewable for another three years, but it can be extended if the employer sponsors the worker for permanent residency, which includes permission to work and live in the US.

Leopold said that the proposed change goes beyond the law’s current wage mandate.

“This statutory mechanism is designed to prevent employers from paying H-1B workers less than their American counterparts, thereby protecting US workers from displacement,” Leopold said.

Congress caps new H-1B visas at 85,000 per fiscal year, including 20,000 for noncitizens who earned advanced degrees. The government approved 400,000 H-1B applications, including renewals, in 2024, according to the nonpartisan Pew Research Center.

Amazon has led the nation’s employers since 2020 in its number of H-1B workers, Pew found.

The New York metro area received more H-1B application approvals than any other metro area; College Station, Texas had the highest concentration of approvals.

What could change with H1-B visas?

The proposed policy favours higher-paid employees, experts said.

Malcolm Goeschl, a San Francisco-based lawyer, said the rule will likely benefit tech companies, including many specialising in artificial intelligence. Such companies pay high salaries, including for entry-level positions. He said it will harm traditional tech companies’ programmes for new graduates.

“There will likely be plenty of lottery numbers available at the top of the prevailing wage scale, but very few or none at the bottom,” Goeschl said. “You may see young graduates shy away from the US labour market early on because of this. Or you could see companies just pay entry-level workers from other countries much higher salaries to get a chance in the lottery, leading to the perverse situation where the foreign workers are making a lot more money than similarly situated US workers.”

The prevailing wage requirements are designed to protect US jobs from being undercut by lower paid foreign workers.

David Bier, director of immigration studies at the libertarian Cato Institute, said the change would likely make it nearly impossible for recent immigrant college graduates, who tend to earn lower wages, to launch their careers in the United States on an H-1B visa.

“The short-term benefit would be the people who get selected are more productive, but the long-term cost might be to permanently redirect future skilled immigration to other countries,” Bier said. “It would also effectively prohibit the H-1B for many industries that rely on it. K-12 schools in rural areas seeking bilingual teachers, for instance, will have no chance under this system.”

Amid a nationwide teacher shortage, some school districts have hired H-1B visa holders, including smaller districts such as Jackson, Mississippi, and larger districts, including Dallas, Texas. Language immersion schools also often employ teachers from other countries using this visa programme.

Why is there a debate about H-1B visas?

The debate around H-1B visas does not neatly fall along partisan lines.

Proponents say the existing visa programme allows American employers to fill gaps, compete with other countries and recruit the “best minds”. Critics point to instances of fraud or abuse and say they favour policies that incentivise hiring Americans.

In December, high-profile Republicans debated the visa programme on social media.

MAGA influencer Laura Loomer denounced the programme and former Trump adviser Steve Bannon called it a “scam”. On the other side, billionaire Elon Musk, a former H-1B visa holder whose companies employ such visa holders, called for the programme’s reform but defended it as an important talent recruitment mechanism.

Trump sided with Musk.

“I have many H-1B visas on my properties,” Trump told the New York Post in late December. “I’ve been a believer in H-1B. I have used it many times. It’s a great programme.”

Senator Bernie Sanders disputed Musk, saying corporations abuse the programme as a way to get richer and should recruit American workers first.

Such visa debates have continued.

When US Representative Greg Murphy, a urologist, argued on X August 8 that the visas “are critical for helping alleviate the severe physician shortage”, thousands replied. Christina Pushaw, a Republican who works for Florida Governor Ron DeSantis, pushed back: “Why not figure out the causes of the domestic physician shortage and try to pass legislation to address those?”