federal

Fetty Wap released from federal prison almost a year early

Fetty Wap is free from federal prison as of Thursday, 11 months ahead of his scheduled release.

The “Trap Queen” rapper, born William Junior Maxwell II, pleaded guilty in August 2022 to conspiracy to distribute and possess controlled substances. He will be supervised for five years, in line with his six-year 2023 sentence.

“Home,” the 34-year-old posted in an Instagram story on Thursday showing the text in stark white on a plain black background.

“Right now, my focus is on giving back through my community initiatives and foundation, supporting at-risk young children by expanding access to education, early tech skills, and vision care for young kids and students so they can show up as their best selves,” he said Thursday in a statement to Billboard. He also thanked family, friends and fans for their support.

He will be in home confinement in Philadelphia until Nov. 8, TMZ reported, then will have to spend the next five years abstaining from alcohol and drugs unless he gets a prescription from a doctor. He might get sent to an outpatient drug program during that time if the court thinks it’s needed, the site said. In addition to getting tested for drug use while under supervision, he won’t be able to open any bank accounts without federal agents’ OK and will have to keep the U.S. Probation Department apprised of his earnings and tax records.

Fetty Wap was arrested in October 2021 before he could take the stage at the New York edition of the Rolling Loud festival and charged along with five other men. In the indictment, the six defendants were accused of distributing cocaine, heroin, fentanyl and crack cocaine. In addition to the conspiracy charge, the five other defendants were also initially charged with using firearms in connection to the alleged drug trafficking.

The performer was released on $500,000 bail while he awaited trial, then — after being put back in custody two months later for a threatening FaceTime call that authorities said violated the terms of his release — pleaded guilty in August 2022.

In May 2023, the “My Way” emcee was sentenced to six years for his role in the drug scheme, with five years of post-release supervision to follow.

“Me being selfish in my pride put me in this position today,” he told the judge who sentenced him. His lawyers had suggested he decided to sell drugs because of financial woes brought on by the COVID-19 pandemic.

“This is a sad day,” defense attorney Elizabeth Macedonio said at the time. “This is a kid from Paterson, New Jersey, who made it out.”

The U.S. Attorney’s Office for the Eastern District of New York saw it differently, saying in a news release that Fetty Wap was “a kilogram-level redistributor” for his trafficking organization.

The organization distributed more than 100 kilograms (approximately 220 pounds) of cocaine, heroin, fentanyl and crack cocaine from June 2019 through June 2020, the release said. Searches executed during investigation of the crime yielded approximately $1.5 million in cash, 16 kilograms of cocaine, 2 kilograms of heroin, numerous fentanyl pills, two 9mm handguns, a rifle, a .45 caliber pistol, a .40 caliber pistol and ammunition, the release said.

“The defendants obtained the narcotics on the west coast and used the United States Postal Service and drivers with hidden vehicle compartments to transport the controlled substances across the country to Suffolk County, where they were stored,” the office said. “The drugs were then distributed to dealers, who sold them on Long Island and in New Jersey.”

Fetty Wap did his time at a low-security federal prison in Sandstone, Minn., north of Minneapolis.

Former Times staff writer Nardine Saad and the Associated Press contributed to this report.



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Federal judge blocks Trump administration’s freeze of $10 billion in child-care funds

A federal judge in New York has temporarily blocked the Trump administration’s move to freeze $10 billion in child-care funds in five Democrat-led states including California.

The ruling Friday afternoon capped a tumultuous stretch that began earlier this week when the U.S. Department of Health and Human Services told California officials and those in Colorado, Illinois, Minnesota and New York that it would freeze federal funding over fraud concerns.

On Thursday the states sued the administration in federal court in Manhattan. The states sought a temporary restraining order, asking the court to block the funding freeze and the administration’s demands for large volumes of administrative data.

An attorney for the states argued Friday morning that there was an immediate need for funding — and that withholding it would cause chaos by depriving families of their ability to pay for child care, and would harm child-care providers who would lose income.

In a brief ruling, Judge Arun Subramanian said that “good cause has been shown for the issuance of a temporary restraining order.”

The White House did not immediately respond to a request for comment.

The federal government’s effort has been viewed as a broad attack on social services in California, and jolted tens of thousands of working families and the state’s child-care industry. Providers told The Times that the funding freeze could imperil child-care centers, many of which operate on slim margins.

“The underscoring issue is that child care and these other federally funded social services programs are major family supports,” said Nina Buthee, executive director of EveryChild California. “They are essential infrastructure that our communities need and depend on, and should not be political tools. So the fact that this judge went in and blocked this very dramatic freeze, I think is only a good thing.”

In a trio of Jan. 6 letters addressed to Gov. Gavin Newsom, the U.S. Department of Health and Human Services said it was concerned there had been “potential for extensive and systemic fraud” in child care and other social services programs that rely on federal funding, and had “reason to believe” that the state was “illicitly providing illegal aliens” with benefits.

The letters did not provide evidence to support the claims. State officials have said the suggestions of fraud are unsubstantiated.

Newsom has said he welcomes any fraud investigations the federal government might conduct, but said cutting off funding hurts families who rely on the aid. According to the state Legislative Analyst’s Office, about $1.4 billion in federal child-care funding was frozen per the letters from Health and Human Services.

“You want to support families? You believe in families? Then you believe in supporting child care and child-care workers in the workforce,” Newsom told MS NOW.

After Subramanian issued the ruling, Newsom’s press office said on X that “the feds went ghost-hunting for widespread ‘fraud’ (with no evidence) — and ended up trying to rip child care and food from kids.”

“It took a federal judge less than 24 hours to shut down Trump’s politically motivated child care cuts in California,” the account posted.

In instituting the freeze, Health and Human Services had said it would review how the federal money had been used by the state, and was restricting access to additional money amid its inquiries. The federal government asked for various data, including attendance documentation for child care. It also demanded beefed-up fiscal accountability requirements.

“Again and again, President Trump has shown a willingness to throw vulnerable children, seniors, and families under the bus if he thinks it will advance his vendetta against Democratic-led states,” Bonta said in a statement following the ruling. “Cutting funding for childcare and other family assistance is cruel, reckless, and most importantly, illegal.”

For Laura Pryor, research director at the California Budget & Policy Center, it is “a sigh of relief.”

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Accused D.C. pipe-bomber enters not guilty plea in federal court

Accused Capitol riot pipe-bomber Brian Cole Jr. in federal court on Friday pleaded not guilty to charges accusing him of planting two pipe bombs outside of respective political party headquarters in Washington, D.C., on January 5, 2021. File Photo by Bonnie Cash/UPI | License Photo

Jan. 9 (UPI) — Brian Cole Jr. pleaded not guilty Friday to federal charges accusing him of placing pipe bombs outside political party headquarters ahead of the Jan. 6, 2021, Capitol protest.

Cole entered his plea during an arraignment hearing in the U.S. District Court for the District of Columbia. He faces charges of interstate transportation of explosives, malicious attempt to use explosives and related federal charges.

Cole, 30, allegedly placed a pipe bomb near the entrances of the Republican National Committee and Democratic National Committee headquarters in Washington, D.C., on the night of Jan. 5, 2021, but neither exploded.

Federal prosecutors said he admitted to placing the explosive devices and that he hoped they would explode and generate news coverage.

Cole said the 2020 election was stolen from voters and that he blamed both political parties because they are the ones in charge of the nation’s politics.

Prosecutors said Cole bought materials to make the bombs over several months ahead of the Capitol protest, and investigators used cellular tower data, credit card records and a license plate reader to identify him.

His attorney said Cole has been peaceful, was diagnosed with autism and the pipe bombs were incapable of exploding, CNN reported.

Cole is a resident of Woodbridge, Va., where he lives with other family members inside his mother’s house that is about 30 miles from the capital.

He was employed by a bail bond business and was arrested at his mother’s home on Dec. 4.

A federal grand jury indicted him on the charges for which he was arraigned on Friday.

He has another court hearing scheduled on Jan. 28 to determine if he should remain in detention or be allowed to post bail and be released from custody while the case is argued in court.

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Two wounded in a shooting with US federal agents in Portland, Oregon | Donald Trump News

Federal agents in the United States have shot and injured two people in the city of Portland, Oregon, a city where the administration of President Donald Trump has led an immigration enforcement crackdown.

The shooting was the second time in less than a day that federal immigration authorities claimed to have fired upon a vehicle in self-defence, following a deadly shooting in Minneapolis, Minnesota.

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On Thursday, the Portland Police Department announced they had responded to reports of gunfire on southeast Main Street at about 2:18pm local time (22:18 GMT).

“Officers confirmed that federal agents had been involved in a shooting,” the city said in a statement.

Emergency responders then received a call for assistance from one of the shooting victims, a man, at about 2:24pm (22:24 GMT) near Northeast 146th Avenue and East Burnside in Portland’s Hazelwood neighbourhood.

“Officers responded and found a male and female with apparent gunshot wounds,” the statement said. “Officers applied a tourniquet and summoned emergency medical personnel.”

The two shooting victims were transported to hospital. Their conditions remain unknown, according to the police, who were not involved in the shooting.

The local bureau of the Federal Bureau of Investigation (FBI) confirmed the shooting in a now-deleted post on social media, saying that the incident involved Customs and Border Patrol (CBP) agents.

“This remains an active and ongoing investigation led by the FBI,” Portland’s FBI bureau said in the post.

Later, the Department of Homeland Security (DHS) offered its own account of what happened, describing the shooting as self-defence during a “targeted vehicle stop”.

In a social media post, DHS said its target was a passenger travelling inside a vehicle, who was affiliated with a “transnational Tren de Aragua prostitution ring and involved in a recent shooting”. The driver, DHS claimed, was a member of Tren de Aragua, a Venezuelan gang.

“When agents identified themselves to the vehicle occupants, the driver weaponized his vehicle and attempted to run over the law enforcement agents,” DHS said in the post.

“Fearing for his life and safety, an agent fired a defensive shot. The driver drove off with the passenger, fleeing the scene.”

Second agent-involved shooting

Details about Thursday’s shooting remain unknown. But the administration of President Donald Trump has faced criticism for misrepresenting incidents where federal agents deployed violence as part of its nationwide immigration crackdown.

The Portland shooting comes one day after an agent with Immigration and Customs Enforcement (ICE) shot and killed Renee Nicole Good, a 37-year-old mother of three, in her car in Minneapolis, Minnesota.

“Just one day after the horrific violence in Minnesota at the hands of federal agents, our community here in Portland is now grappling with another deeply troubling incident,” Portland Mayor Keith Wilson said in a statement.

“We cannot sit by while constitutional protections erode and bloodshed mounts.”

Good’s death has triggered widespread outrage, as well as criticism that the Trump administration rushed to disseminate a misleading narrative about the Minneapolis shooting.

Video of Good’s shooting showed the 37-year-old stopped in her SUV on a snowy Minneapolis road, appearing to wave other drivers by.

A vehicle carrying ICE officers stopped next to her vehicle, and agents approached her, reaching for the handle of her car door. One approached the front of her vehicle. As her car appeared to turn and manoeuvre away, that agent fired multiple times into the vehicle, killing Good.

In that case, too, Trump administration officials claim the ICE agent acted in self-defence, despite the fact that the vehicle did not seem to make contact with his body.

Trump asserted – without evidence – that Good was a “professional agitator” who “violently, willfully, and viciously ran over the ICE Officer”. Homeland Security Secretary Kristi Noem also accused Good of a “domestic act of terrorism”, despite there being no evidence Good sought to harm the ICE agent.

Democratic officials have accused the Trump administration of spreading false narratives to distract from its own abuses during the immigration crackdown.

Still, officials in Portland repeatedly called for calm in the aftermath of Thursday’s shooting, while acknowledging the parallels between the incidents.

“We are still in the early stages of this incident,” Portland Police Chief Bob Day said in a statement.

“We understand the heightened emotion and tension many are feeling in the wake of the shooting in Minneapolis, but I am asking the community to remain calm as we work to learn more.”

Mayor Wilson, meanwhile, called for federal immigration agents to leave the city, arguing that they had endangered local citizens with their heavy-handed actions.

“Portland is not a ‘training ground’ for militarized agents, and the ‘full force’ threatened by the administration has deadly consequences,” Wilson said.

“As Mayor, I call on ICE to end all operations in Portland until a full investigation can be completed. Federal militarization undermines effective, community‑based public safety, and it runs counter to the values that define our region.”

Oregon Senator Jeff Merkley, meanwhile, expressed “huge concern” over the incident and suggested that responding with anger would only fuel the Trump administration’s fixation with Portland.

“Trump wants to generate riots,” he wrote. “Don’t take the bait.”

Portland under a microscope

Portland has long been a focal point of Trump’s immigration enforcement actions, and the increased federal presence has ignited largely nonviolent protests in response.

Long seen as a Democratic stronghold, Portland was identified in May as one of the “sanctuary jurisdictions” that the Trump administration identified as resisting its immigration crackdown.

The Republican president hinted he could surge federal agents to the area in response.

In September, those threats appeared to materialise when Trump wrote on his Truth Social platform that he would be sending the US military to support immigration operations in the city.

The announcement came five days after Trump declared antifa – the loose-knit antifascist movement – a “domestic terrorist organisation”.

“I am directing Secretary of War, Pete Hegseth, to provide all necessary Troops to protect War ravaged Portland, and any of our ICE Facilities under siege from attack by Antifa, and other domestic terrorists,” Trump wrote. “I am also authorizing Full Force, if necessary.”

It was the latest in the string of instances where Trump attempted to send federal troops to largely Democratic urban areas, including Los Angeles and Chicago, Illinois.

Local officials denounced the deployment as a violation of the law and a misuse of executive authority. But the Trump administration doubled down, describing Portland as overrun by criminal behaviour.

“ In Portland, Oregon, antifa thugs have repeatedly attacked our officers and laid siege to federal property in an attempt to violently stop the execution of federal law,” Trump said at an October roundtable.

In response, some protesters in Portland began arriving in inflatable frog costumes, in an effort to cast Trump’s warnings about violent extremists as absurd. The Portland Frog Brigade, as the protesters were called, inspired similar demonstrations nationwide.

State and local leaders fought Trump’s troop deployment in court, and on November 7, US District Judge Karin Immergut permanently blocked the deployment.

The US Supreme Court in December declined the Trump administration’s appeal to allow National Guard troops in areas where lower courts had barred them.

On Thursday, Mayor Wilson called for accountability in the recent shootings, saying he would protect local residents’ civil liberties.

“ICE agents and their Homeland Security leadership must be fully investigated and held responsible for their violence against the American people, in Minnesota, in Portland, and across the nation,” he said.

He repeated the message that Portland residents should not seek retribution in the aftermath of the gunfire.

“Portland does not respond to violence with violence. We respond with clarity, unity, and a commitment to justice. We must stand together to protect Portland,” he said.

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Federal immigration officers shoot and wound 2 people in Portland, Ore., authorities say

Federal immigration officers shot and wounded two people outside a hospital in Portland, Ore., on Thursday, a day after an officer shot and killed a driver in Minnesota, authorities said.

The FBI’s Portland office said it was investigating an “agent involved shooting” that happened around 2:15 p.m. According to the the Portland Police bureau, officers initially responded to a report of a shooting near a hospital.

A few minutes later, police received information that a man who had been shot was asking for help in a different area a couple of miles away. Officers then responded there and found the two people with apparent gunshot wounds. Officers determined they were injured in the shooting with federal agents, police said.

Their conditions were not immediately known. Council President Elana Pirtle-Guiney said during a Portland city council meeting that Thursday’s shooting took place in the eastern part of the city and that two Portlanders were wounded.

“As far as we know both of these individuals are still alive and we are hoping for more positive updates throughout the afternoon,” she said.

The shooting comes a day after an Immigration and Customs Enforcement officer shot and killed a woman in Minnesota. It escalated tensions in an city that has long had a contentious relationship with President Trump, including Trump’s recent, failed effort to deploy National Guard troops in the city.

Portland police secured both the scene of the shooting and the area where the wounded people were found pending investigation.

“We are still in the early stages of this incident,” said Chief Bob Day. “We understand the heightened emotion and tension many are feeling in the wake of the shooting in Minneapolis, but I am asking the community to remain calm as we work to learn more.”

Portland Mayor Keith Wilson and the City Council called on U.S. Immigration and Customs Enforcement to end all operations in Oregon’s largest city until a full investigation is completed.

“We stand united as elected officials in saying that we cannot sit by while constitutional protections erode and bloodshed mounts,” a joint statement said. “Portland is not a ‘training ground’ for militarized agents, and the ‘full force’ threatened by the administration has deadly consequences.”

The city officials said “federal militarization undermines effective, community‑based public safety, and it runs counter to the values that define our region. We’ll use every legal and legislative tool available to protect our residents’ civil and human rights.”

They urged residents to show up with “calm and purpose during this difficult time.”

“We respond with clarity, unity, and a commitment to justice,” the statement said. “We must stand together to protect Portland.”

U.S. Sen. Jeff Merkley, an Oregon Democrat, urged any protesters to remain peaceful.

“Trump wants to generate riots,” he said in a post on the X social media platform. “Don’t take the bait.”

Rush writes for the Associated Press.

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What Trump’s vow to withhold federal childcare funding means in California

Gov. Gavin Newsom and other state Democratic leaders accused President Trump of unleashing a political vendetta after he announced plans to freeze roughly $10 billion in federal funding for child care and social services programs in California and four other Democrat-controlled states.

Trump justified the action in comments posted on his social media platform Truth Social, where he accused Newsom of widespread fraud. The governor’s office dismissed the accusation as “deranged.”

Trump’s announcement came amid a broader administration push to target Democratic-led states over alleged fraud in taxpayer-funded programs, following sweeping prosecutions in Minnesota. The U.S. Department of Health and Human Services confirmed the planned funding freeze, which was first reported by The New York Post.

California officials said they have received no formal notice and argued the president is using unsubstantiated claims to justify a move that could jeopardize child care and social services for low-income families.

How we got here

Trump posted on his social media site Truth Social on Tuesday that under Newsom, California is “more corrupt than Minnesota, if that’s possible???” In the post, Trump used a derogatory nickname for Newsom that has become popular with the governor’s critics, referring to him as “Newscum.”

“The Fraud Investigation of California has begun,” Trump wrote.

The president also retweeted a story by the New York Post that said his Department of Health and Human Services will freeze taxpayer funding from the Child Care Development Fund, the Temporary Assistance for Needy Families program, which is known as CalWORKS in California, and the Social Services Block Grant program. HHS said that the impacted states are California, Colorado, Illinois, Minnesota, and New York.

“For too long, Democrat-led states and Governors have been complicit in allowing massive amounts of fraud to occur under their watch,” said Andrew Nixon, a HHS spokesperson. “Under the Trump Administration, we are ensuring that federal taxpayer dollars are being used for legitimate purposes. We will ensure these states are following the law and protecting hard-earned taxpayer money.”

HHS announced last month that all 50 states will have to provide additional levels of verification and administrative data before they receive more funding from the Child Care and Development Fund following a series of fraud schemes at Minnesota day care centers run by Somali residents.

“The Trump Administration is using the moral guise of eliminating ‘fraud and abuse’ to undermine essential programs and punish families and children who depend on these services to survive, many of whom have no other options if this funding disappears,” Kristin McGuire, president of Young Invincibles, a young-adult nonprofit economic advocacy group, said in a statement. “This is yet another ideologically motivated attack on states that treats millions of families as pawns in a political game.”

California pushes back

Newsom’s office brushed off Trump’s post about fraud allegations, calling the president “a deranged, habitual liar whose relationship with reality ended years ago.” Newsom himself said he welcomes federal fraud investigations in the state, adding in an interview on MS NOW that aired Monday night: “Bring it on … if he has some unique insight and information, I look forward to partnering with him. I can’t stand fraud.”

However, Newsom said cutting off funding hurts hard-working families who rely on the assistance.

“You want to support families? You believe in families? Then you believe in supporting child care and child care workers in the workforce,” Newsom told MS NOW.

California has not been notified of any changes to federal child care or social services funding. H.D. Palmer, a spokesperson for the Department of Finance, said the only indication from Washington that California’s childcare funding could be in jeopardy was the vague 5 a.m. post Tuesday by the president on Truth Social.

“The president tosses these social media missives in the same way Mardi Gras revelers throw beads on Bourbon Street — with zero regard for accuracy or precision,” Palmer said.

In the current state budget, Palmer said California’s childcare spending is $7.3 billion, of which $2.2 billion is federal dollars. Newsom is set to unveil his budget proposal Friday for the upcoming fiscal year that begins July 1, which will mark the governor’s final spending plan before he terms out. Newsom has acknowledged that he is considering a 2028 bid for president, but has repeatedly brushed aside reporters’ questions about it, saying his focus remains on governing California.

Palmer said while details about the potential threat to federal childcare dollars remain unclear, what is known is that federal dollars are not like “a spigot that will be turned off by the end of the week.”

“There is no immediate cutoff that will happen,” Palmer said.

Since Trump took office, California has filed dozens of legal actions to block the president’s policy changes and funding cuts, and the state has prevailed in many of them.

What happened in Minnesota

Federal prosecutors say Minnesota has been hit by some of the largest fraud schemes involving state-run, federally funded programs in the country. Federal prosecutors estimate that as much as half of roughly $18 billion paid to 14 Minnesota programs since 2018 may be fraudulent, with providers accused of billing for services never delivered and diverting money for personal use.

The scale of the fraud has drawn national attention and fueled the Trump administration’s decision to freeze child care funds while demanding additional safeguards prior to doling out money, moves that critics say risk harming families who rely on the programs. Gov. Tim Walz has ordered a third-party audit and appointed a director of program integrity. Amid the fallout, Walz announced he will not seek a third term.

Outrage over the fraud reached a fever pitch in the White House after a video posted online by an influencer purported to expose extensive fraud at Somali-run child care centers in Minnesota. On Monday, that influencer, Nick Shirley, posted on the social media site X, “I ENDED TIM WALZ,” a claim that prompted calls from conservative activists to shift scrutiny to Newsom and California next.

Right-wing podcaster Benny Johnson posted on X that his team will be traveling to California next week to show “how criminal California fraud is robbing our nation blind.”

California officials have acknowledged fraud failures in the past, most notably at the Employment Development Department during the COVID-19 pandemic, when weakened safeguards led to billions of dollars in unemployment payments later deemed potentially fraudulent.

An independent state audit released last month found administrative vulnerabilities in some of California’s social services programs but stopped short of alleging widespread fraud or corruption. The California State Auditor added the Department of Social Services to its high-risk list because of persistent errors in calculating CalFresh benefits, which provides food assistance to those in need — a measure of payment accuracy rather than criminal activity — warning that federal law changes could eventually force the state to absorb billions of dollars in additional costs if those errors are not reduced.

What’s at stake in California

The Trump administration’s plans to freeze federal child care, welfare and social services funding would impact $7.3 billion in Temporary Assistance for Needy Families funding, $2.4 billion for child care subsidies and more than $800 million for social services programs in the five states.

The move was quickly criticized as politically motivated because the targeted states were all Democrat-led.

“Trump is now illegally freezing childcare and other funding for working families, but only in blue states,” state Sen. Scott Wiener (D-San Francisco) said in a statement. “He says it’s because of ‘fraud,’ but it has nothing to do with fraud and everything to do with politics. Florida had the largest Medicaid fraud in U.S. history yet isn’t on this list.”

Added California Assembly Speaker Robert Rivas: “It is unconscionable for Trump and Republicans to rip away billions of dollars that support child care and families in need, and this has nothing to do with fraud. California taxpayers pay for these programs — period — and Trump has no right to steal from our hard-working residents. We will continue to fight back.”

Times staff writer Daniel Miller contributed to this report.

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Federal judge rules that teachers can out LGBTQ+ students to parents

In a massive blow to LGBTQIA+ rights, a federal judge has ruled that teachers can out queer and trans students to their parents.

Back in April 2023, two middle school teachers from the Escondido Union School District sued the district, the California State Board, and a handful of educational officials over a policy protecting LGBTQIA+ students.

Under the guidance in question, which has since been withdrawn, teachers and school staff were instructed to recognise a student’s gender identity changes and desired pronouns. It also prohibited disclosing students’ identities to their parents or guardians without their consent.

In the suit, the two teachers alleged that the policy violated their free speech and religious beliefs

After nearly a two-year legal battle, which included the case being converted to a class-action suit, US District Judge Roger Benitez ruled in favour of the plaintiffs on 23 December.

Under the order, employees in the California statewide education system are prohibited from “misleading the parent or guardian of a minor child in the education system about their child’s gender presentation at school.”

This includes “directly lying” to the student’s parent or guardian, preventing the parent or guardian from accessing the student’s educational records, and using “a different set of preferred pronouns/names when speaking with the parents than is being used at school.”

Shortly after Judge Benitez’s ruling, the state filed an appeal with the 9th Circuit Court of Appeals.

“A stay pending appeal – and at a minimum a brief stay to seek relief from the Court of Appeals – is warranted in this case,” the state wrote in the request.

“The Court has issued a statewide injunction that abruptly enjoins State Defendants from enforcing long-standing state laws that protect vulnerable transgender and gender nonconforming students.

“If the Orders are allowed to stay in effect before the Court of Appeals has a chance to review them, they would irrevocably alter the status quo and will create chaos and confusion among students, parents, teachers, and staff at California’s public schools.”

At the start of the month, the appeals court granted the state a short-term administrative stay of ruling, per Education Week.

The recent development comes more than a year after California Governor Gavin Newsom signed the LGBTQIA+ inclusive SAFETY Act into law, which stops school districts from requiring staff to share information about a student’s sexual orientation or gender identity to parents.

It also protects teachers and other school employees from retaliation, like being fired, if they choose not to out a student’s sexuality or gender identity to parents.

Over the last few days, LGBTQIA+ advocates and organisations have called out Judge Benitez’s rulling.

Christine Parker, senior staff attorney with the Gender, Sexuality, and Reproductive Justice Project at the ACLU Foundation of Southern California, said: “This decision denies the realities the California Legislature recognised when it adopted the SAFETY Act last year, and the Student Success and Opportunity Act back in 2013, to help ensure all students feel safe and respected at school, even if they are not ready or able to be out at home or are navigating a less-than-supportive family dynamic.

“A culture of outing harms everyone—students, families, and school staff alike—by removing opportunities to build trust. LGBTQ+ students deserve to decide on their own terms if, when, and how to come out, and to be able to be themselves at school.”

The California Legislative LGBTQ Caucus echoed similar sentiments in a statement posted to their website.

“The California Legislative LGBTQ Caucus strongly condemns the recent ruling by Judge Benitez in Mirabelli v. Olson. While the decision formally addresses a narrow Escondido Union School District policy, it deliberately injects confusion into the public understanding of the SAFETY Act (AB 1955) and signals an alarming willingness to undermine long-standing constitutional rights to privacy and nondiscrimination protections across California law,” the group wrote.

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Federal employees file complaint against ban on gender-affirming care

The Trump administration is facing a new legal complaint from a group of government employees affected by a policy that went into effect Thursday that eliminates coverage for gender-affirming care in federal health insurance programs.

The complaint, filed Thursday on the employees’ behalf by the Human Rights Campaign, is in response to an August announcement from the Office of Personnel Management that it would no longer cover “chemical and surgical modification of an individual’s sex traits through medical interventions” in health insurance programs for federal employees and U.S. Postal Service workers.

The complaint argues that denying coverage of gender-affirming care is sex-based discrimination and asks the personnel office to rescind the policy.

“This policy is not about cost or care — it is about driving transgender people and people with transgender spouses, children, and dependents out of the federal workforce,” Human Rights Campaign Foundation President Kelley Robinson said in a statement.

The complaint, filed with the Equal Employment Opportunity Commission, includes testimonies from four current federal workers at the State Department, Health and Human Services and the Postal Service who would be directly affected by the elimination of coverage.

For instance, the Postal Service employee has a daughter whose doctors recommended that she get puberty blockers and potentially hormone replacement therapy for her diagnosed gender dysphoria, which would not be covered under the new policy, according to the complaint.

The complaint notes that the workers are making the claim on behalf of themselves and a “class of similarly situated federal employees.”

The Trump administration has taken other steps to restrict care for transgender Americans, particularly minors. In December, the U.S. Department of Health and Human Services released proposals that would block gender-affirming care to minors, including a policy that would bar Medicare and Medicaid dollars to hospitals that provide such care to children.

Senior Trump officials, such as Health and Human Services Secretary Robert F. Kennedy Jr., call gender-affirming care “malpractice” for minors. But such restrictions go against recommendations from major medical groups such as the American Medical Assn. and the American Academy of Pediatrics.

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US federal employees file complaint against Trump’s anti-transgender policy | Donald Trump News

The complaint targets a policy that would nix coverage under federal health insurance for gender-affirming healthcare.

A group of federal government employees in the United States has filed a class action complaint against President Donald Trump’s administration over a new policy that will eliminate coverage for gender-affirming care in federal health insurance programmes.

The policy took effect with the start of the new year, and on Thursday, the Human Rights Campaign Foundation issued the complaint, acting on behalf of the federal employees.

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The US Office of Personnel Management (OPM) was named as a defendant.

In an August letter, the OPM stated that, as of 2026, “chemical and surgical modification of an individual’s sex traits through medical interventions” would no longer be covered under health insurance programmes for federal employees and US postal workers.

OPM officials could not be reached for immediate comment.

The complaint argues that the policy is discriminatory on the basis of sex. It asks that the policy be rescinded and seeks payment for economic damages and other relief.

If the issue is not resolved with the OPM, the foundation said that plaintiffs will pursue class claims before the Equal Employment Opportunity Commission and potentially continue with a class action lawsuit in federal court.

Separately, a group of Democratic state attorneys general last month sued the Trump administration to block proposed rules that would cut children’s access to gender-affirming care, the latest court battle over Trump’s efforts to eliminate legal protections for transgender people.

US Secretary of Health and Human Services Robert F Kennedy Jr has proposed rules that would bar hospitals that provide gender-affirming care to children from Medicaid and Medicare and prohibit the Children’s Health Insurance Program from paying for it.

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How California has Trump-proofed some federal funding for the homeless

When Virginia Guevara moved into a studio apartment in Orange County in 2024 after nearly a decade of homelessness, she needed far more than a roof and a bed.

Scattered visits to free clinics notwithstanding, Guevara hadn’t had a full medical checkup in years. She required dental work. She wanted to start looking for a job. And she was overwhelmed by the maze of paperwork needed simply to get her off the street, much less to make any of the other things happen.

But Guevara had help. The Jamboree Housing Corp., an affordable-housing nonprofit that renovated a former hotel in Stanton that Guevara now calls home, didn’t just move her in — it also provided her a fleet of wraparound services. Jamboree counselors helped Guevara navigate the healthcare system to see a doctor and a dentist, buy a few things for her apartment, and get training to become a caregiver.

“I was years on the street before I got the kind of help I needed so I could help myself,” said Guevara, 68.

Amid the Trump administration’s apparent opposition to using Medicaid funding for such social services, staffers at Jamboree and similar affordable-housing providers in California have feared losing federal money. The experimental waivers that provide the primary funding for the program expire at the end of 2026. But as it turns out, the state had the foresight several years ago to designate certain nonhousing social services — such as mental health care, drug counseling and job training — as a form of Medicaid spending that will continue to be reimbursed.

Catherine Howden, a spokesperson for the federal Centers for Medicare & Medicaid Services, confirmed that California’s use of the “in lieu of services” classification for these wraparound programs is allowed under federal regulations.

“It is starting to sound positive that we will, at the very least, be able to continue billing for these services after the waiver period,” said Natalie Reider, a senior vice president at Jamboree Housing.

During President Trump’s first term, states were permitted to use Medicaid money for social support services not typically covered by health insurance. But the second Trump administration is reeling that policy back in, saying that the intervening Biden administration took the supportive services process too far. Howden said in a statement that the policy “distracted the Medicaid program from its core mission: providing excellent health outcomes for vulnerable Americans.”

Through CalAIM, a five-year experimental build-out of the Medicaid system, programs such as Jamboree were able to leverage federal funding to offer the kinds of nonhousing social services that experts contend are essential to keeping people permanently housed.

However, these wraparound services are only one component of the CalAIM initiative, which is attempting to take Medicaid, known as Medi-Cal in California, in a more holistic direction across all areas of care. And when CalAIM launched, California officials gave the programs the Medicaid “in lieu of services” designation, known as ILOS, in effect putting them outside the waiver process and ensuring that even when CalAIM sunsets, money for those social initiatives will continue to flow.

“California has tried to future-proof many of the policy changes it has made in Medi-Cal by including them in mechanisms like ILOS that do not require federal waiver approval,” said Larry Levitt, executive vice president for health policy at KFF, a health information nonprofit that includes KFF Health News. “That allows these policy changes to continue, even with a politically hostile federal administration.”

The designation allows these social services to be funded through Medicaid managed-care plans under existing federal laws because they are cost-effective substitutes for a Medicaid service or reduce the likelihood of patients needing other Medicaid-covered healthcare services, said Glenn Tsang, policy advisor for homelessness and housing at the state’s Department of Health Care Services. The state could not provide an estimate of the annual funding for these wraparound services because they are not distinguished from other payments made to Medicaid managed-care plans.

“We are full steam ahead with these services,” Tsang said, “and they are authorized.”

Although California was the first state to incorporate the designation for such housing and other health-related social support, Tsang said, several other states — including Arizona, Arkansas, Florida, New York and North Carolina — are now using the mechanism in a similar fashion.

A man with dark hair, in a red plaid shirt, as other people seated around him at a table listen

Paul San Felipe, senior program manager for Jamboree, speaks during a meeting at Clara Vista in Stanton on Dec. 29, 2025.

(Eric Thayer / Los Angeles Times)

Early results suggest such support saves on healthcare spending. When Jamboree, MidPen Housing Corp. in Northern California, RH Community Builders in the Central Valley and other permanent supportive housing providers employ a holistic approach that includes social services, they reported higher rates of formerly homeless people remaining in housing, less frequent use of costly emergency health services, and more residents landing jobs that help them pay rent and stay housed.

At the nonprofit MidPen Housing, which serves 12 counties in and around the San Francisco Bay Area, roughly 40% of the units in the program’s pipeline are earmarked for “extremely low-income” people, a group that includes those who are homeless, said Danielle McCluskey, senior director of resident services.

CalAIM reimbursements help fund the part of MidPen that focuses on supportive services across a wide range of experiences, such as chronic homelessness, mental health issues and those leaving the foster care system. McCluskey described it as one leg of a three-legged stool, the others being real estate development and property management.

“If any of those legs are not getting what they need, if they’re not funded or not staffed or resourced, then that stool is kind of wobbly — off-kilter,” the director said.

A recent state evaluation found that people who used at least one of the housing support services — including navigation into new housing, healthcare assistance and a deposit to secure an apartment — saw a 13% reduction in emergency department visits and a 24% reduction in inpatient admissions in the six months that followed.

Documenting those outcomes is crucial because the department needs to show federal officials that the services lessen the need for other, often costlier Medicaid-covered care — the essence of the classification.

Advocates for the inclusion of supportive services argue that the American system ultimately saves money on those investments. As California’s homeless population has soared in recent years to more than 187,000 on a given night — nearly a quarter of the U.S. total — Jamboree has been allocating more of its resources to permanent supportive housing.

Founded in 1990 in Orange County, Jamboree builds various types of affordable housing using federal, state and private funding. Reider said about a fifth of the organization’s portfolio is dedicated to permanent supportive housing.

“They’re not going back out to the streets. They’re not going to jail. They’re not going to the hospitals,” Reider said. “Keeping people housed is the No. 1 outcome, and it is the cost-saver, right? We’re using Medicaid dollars, but we’re saving the system money in the long run.”

a woman poses for a portrait wearing sunglasses and a blue shirt

Guevara spent years living out of her truck before a shelter worker connected her with Jamboree. Now she also has found work as a caregiver.

(Eric Thayer / Los Angeles Times)

Guevara, who wound up on the streets after a falling-out with family in 2015, spent years living out of her truck before a shelter worker connected her with Jamboree. There, she was paired with a specialist to help her figure out how to get and see a doctor, and to keep up with scheduling the battery of medical tests she needed after years spent living in temporary shelters.

“I also got a job developer, who helped me get this job with the county so I can pay my rent,” Guevara said of her position as a part-time in-home caregiver. “Now I take care of people kind of the same way people have been taking care of me.”

KFF Health News is a national newsroom that produces in-depth journalism about health issues and is one of the core operating programs at KFF — the independent source for health policy research, polling, and journalism.

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Surge in federal officers in Minnesota focuses on alleged fraud at day care centers

A surge of federal officers in Minnesota follows new allegations of fraud by day care centers run by Somali residents.

President Trump has previously linked his administration’s immigration crackdown against Minnesota’s large Somali community to a series of fraud cases involving government programs in which most of the defendants have roots in the east African country.

Surge in federal officers

Department of Homeland Security Secretary Kristi Noem and FBI Director Kash Patel both announced an increase in operations in Minnesota this week. The move comes after a right-wing influencer posted a video Friday claiming he had found that day care centers operated by Somali residents in Minneapolis had committed up to $100 million in fraud.

Tikki Brown, commissioner of the Minnesota Department of Children, Youth, and Families, said at a Monday news conference that state regulators took the influencer’s allegations seriously.

Noem posted on social media that officers were “conducting a massive investigation on childcare and other rampant fraud.” Patel said the intent was to “dismantle large-scale fraud schemes exploiting federal programs.”

Past fraud in Minnesota

Minnesota has been under the spotlight for years for Medicaid fraud, including a massive $300-million pandemic fraud case involving the nonprofit Feeding Our Future. Prosecutors said it was the country’s largest COVID-19-related fraud scam and that defendants exploited a state-run, federally funded program intended to provide food for children.
In 2022, during President Biden’s administration, 47 people were charged. The number of defendants has grown to 78 throughout the ongoing investigation.

So far, 57 people have been convicted, either because they pleaded guilty or lost at trial.

Most of the defendants are of Somali descent.

Numerous other fraud cases are being investigated, including new allegations focused on child care centers.

In news interviews and releases over the summer, prosecutor Joe Thompson estimated the loss from all fraud cases could exceed $1 billion. Earlier this month, a federal prosecutor alleged that half or more of the roughly $18 billion in federal funds that supported 14 programs in Minnesota since 2018 may have been stolen.

Crackdown targeting Somalis

Trump’s immigration enforcement in Minnesota has focused on the Somali community in the Minneapolis-St. Paul area, which is the largest in the country.

Trump labeled Minnesota Somalis as “garbage” and said he didn’t want them in the United States.

About 84,000 of the 260,000 Somalis in the U.S. live in the Minneapolis-St. Paul area. The overwhelming majority are U.S. citizens. Almost 58% were born in the U.S and 87% of the foreign-born are naturalized citizens.

Among those running schemes to get funds for child nutrition, housing services and autism programs, 82 of the 92 defendants are Somali Americans, according to the U.S. attorney’s office for Minnesota.

Republicans have tried to blame Walz

Minnesota Gov. Tim Walz, the 2024 Democratic vice presidential nominee, has said fraud will not be tolerated and his administration “will continue to work with federal partners to ensure fraud is stopped and fraudsters are caught.”

The fraud could be a major issue in the 2026 gubernatorial race as Walz seeks a third term.

Walz has said an audit due by late January should give a better picture of the extent of the fraud but allowed that the $1-billion estimate could be accurate. He said his administration is taking aggressive action to prevent additional fraud. He has long defended how his administration responded.

Minnesota’s most prominent Somali American, Democratic U.S. Rep. Ilhan Omar, has urged people not to blame an entire community for the actions of a relative few.

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Federal judge temporarily halts South Sudanese deportations

Dec. 30 (UPI) — A federal judge on Tuesday ordered the Trump administration to reinstate temporary protected status against deportation for citizens of South Sudan.

U.S. District Court of Massachusetts Judge Angel Kelley, in a four-page ruling, ordered an administrative stay of the Trump administration’s decision to end TPS for those from South Sudan as of Jan. 6.

“Because of the serious consequences at stake, both for the plaintiffs and the defendants, the court finds an administrative stay appropriate as it would ‘minimize harm’ while allowing the assigned district court judge the time this case deserves,” Kelley said.

The stay does not represent the merits of the case and instead gives the court time to weigh arguments and evidence before rendering a decision.

Kelley, who was appointed by former President Joe Biden in 2021, gave plaintiffs through Jan. 9 to file their arguments and the Trump administration through Jan. 13.

She will rule on the matter after reviewing the respective arguments.

The federal lawsuit was filed on Dec. 22 by African Communities Together on behalf of four unnamed plaintiffs and all others similarly situated, which makes it a class action.

The defendants are the Department of Homeland Security, Secretary of Homeland Security Kristi Noem, U.S. Citizenship and Immigration Services and the federal government.

African Communities Together says 232 South Sudanese nationals benefit from TPS, plus another 73 who have applied for TPS protection.

The Obama administration first provided TPS protection for those from South Sudan in 2011, and the status repeatedly was extended over the past 14 years.

South Sudan became an independent nation in 2011 in East Africa, but it has been subject to war and conflict since then.

Noem in November announced conditions in South Sudan have changed and no longer merit TPS status for its citizens in the United States.

TPS status enables recipients to stay in the United States and obtain work authorizations when their home countries are subject to armed conflict, environmental disasters and other “extraordinary conditions.”

While the plaintiffs oppose deportations of South Sudanese to their nation of citizenship, the Supreme Court recently approved the Trump administration’s deportation of eight others — seven of whom are citizens of other countries — to South Sudan.

Former President Joe Biden presents the Presidential Citizens Medal to Liz Cheney during a ceremony in the East Room of the White House in Washington, on January 2, 2025. The Presidential Citizens Medal is bestowed to individuals who have performed exemplary deeds or services. Photo by Will Oliver/UPI | License Photo

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Federal judge blocks ICE from arresting immigrants in Northern California courts

A federal judge in San Francisco on Wednesday barred Immigration and Customs Enforcement and its Justice Department counterpart from “sweeping” civil arrests at immigration courthouses across Northern California, teeing up an appellate challenge to one of the Trump administration’s most controversial deportation tactics.

“This circumstance presents noncitizens in removal proceedings with a Hobson’s choice between two irreparable harms,” Judge P. Casey Pitts wrote in his Christmas Eve decision.

“First, they may appear in immigration court and face likely arrest and detention,” the judge wrote. “Alternatively, noncitizens may choose not to appear and instead to forego their opportunity to pursue their claims for asylum or other relief from removal.”

Wednesday’s decision blocks ICE and the Department of Justice’s Executive Office for Immigration Review from lying in wait for asylum seekers and other noncitizens at routine hearings throughout the region — a move that would effectively restore pre-Trump prohibition on such arrests.

“Here, ICE and EOIR’s prior policies governing courthouse arrests and detention in holding facilities provide a standard,” the judge said.

Authorities have long curbed arrests at “sensitive locations”— such as hospitals, houses of worship and schools — putting them out of reach of most civil immigration enforcement.

The designation was first established decades ago under ICE’s predecessor agency, Immigration and Naturalization Services. ICE absorbed the prohibitions when the agency was formed in the wake of the Sept. 11 attacks.

Courts were added to the list under President Obama. The policy prohibiting most courthouse arrests was suspended during the first Trump administration and reinstated by President Biden.

Internal ICE guidance from the Biden era found “[e]xecuting civil immigration enforcement actions in or near a courthouse may chill individuals’ access to courthouses and, as a result, impair the fair administration of justice.”

Nevertheless, the agency’s courthouse policy was reversed again earlier this year, leading to a surge in arrests, and a staggering drop in court appearances, court records show.

Most who do not show up are ordered removed in absentia.

Monthly removal in absentia orders more than doubled this year, to 4,177 from fewer than 1,600 in 2024, justice department data show.

More than 50,000 asylum seekers have been ordered removed after failing to appear in court hearings since January — more than were ordered removed in absentia in the previous five years combined.

“ICE cannot choose to ignore the ‘costs’ of its new policies—chilling the participation of noncitizens in their removal proceedings —and consider only the policies’ purported ‘benefits’ for immigration enforcement,” Pitts wrote in his stay order.

That ruling likely sets the San Francisco case on a collision course with other lawsuits seeking to curb ICE’s incursions into spaces previously considered off-limits. This suit was brought by a group of asylum seekers who braved the risk and were detained when they showed up to court.

One, a 24-year-old Guatemalan asylum seeker named Yulisa Alvarado Ambrocio, was spared detention only because her breastfeeding 11-month-old was with her in court, records show. Administration lawyers told the court ICE would almost certainly pick her up at her next hearing.

Such arrests appear arbitrary and capricious, and are unlikely to survive scrutiny by the courts, Judge Pitts ruled Wednesday.

“That widespread civil arrests at immigration courts could have a chilling effect on noncitizens’ attendance at removal proceedings (as common sense, the prior guidance, and the actual experience in immigration court since May 2025 make clear) and thereby undermine this central purpose is thus ‘an important aspect of the problem’ that ICE was required, but failed, to consider,” Pitts wrote.

A district judge in Manhattan ruled the opposite way on a similar case this fall, setting up a possible circuit split and even a Supreme Court challenge to courthouse arrests in 2026.

For now, the Christmas Eve decision only applies to ICE’s San Francisco Area of Responsibility, a region encompassing all of Northern and Central California, as far south as Bakersfield.

The geographic limit comes in response to the Supreme Court’s emergency decision earlier this year stripping district judges of the power to block federal policies outside narrowly-tailored circumstances.

The administration told the court it intends to appeal to the 9th Circuit, where Trump-appointed judges have swung the bench far to the right of its longtime liberal reputation.

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Federal judge upholds Hawaii’s new climate change tax on cruise passengers

A federal judge’s ruling clears the way for Hawaii to include cruise ship passengers in a new tourist tax to help cope with climate change, a levy set to go into effect at the start of 2026.

U.S. District Judge Jill A. Otake on Tuesday denied a request seeking to stop officials from enforcing the new law on cruises.

In the nation’s first such levy to help cope with a warming planet, Hawaii Gov. Josh Green signed legislation in May that raises tax revenue to deal with eroding shorelines, wildfires and other climate problems. Officials estimate the tax will generate nearly $100 million annually.

The levy increases rates on hotel room and vacation rental stays but also imposes a new 11% tax on the gross fares paid by a cruise ship’s passengers, starting next year, prorated for the number of days the vessels are in Hawaii ports.

Cruise Lines International Assn. challenged the tax in a lawsuit, along with a Honolulu company that provides supplies and provisions to cruise ships and tour businesses out of Kauai and the Big Island that rely on cruise ship passengers. Among their arguments is that the new law violates the Constitution by taxing cruise ships for the privilege of entering Hawaii ports.

Plaintiff lawyers also argued that the tax would hurt tourism by making cruises more expensive. The lawsuit notes the law authorizes counties to collect an additional 3% surcharge, bringing the total to 14% of prorated fares.

“Cruise tourism generates nearly $1 billion in total economic impact for Hawai‘i and supports thousands of local jobs, and we remain focused on ensuring that success continues on a lawful, sustainable foundation,” association spokesperson Jim McCarthy said in a statement.

According to court records, plaintiffs will appeal. They asked the judge to grant an injunction pending an appeal and requested a ruling by Saturday afternoon, given that the law takes effect Jan. 1.

Hawaii will continue to defend the law, which requires cruise operators to pay their share of transient accommodation tax to address climate change threats to the state, state Atty. Gen. Anne Lopez said in a statement.

The U.S. government intervened in the case, calling the tax a “scheme to extort American citizens and businesses solely to benefit Hawaii” in conflict with federal law.

Kelleher writes for the Associated Press.

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California, other states sue to protect federal consumer agency

California joined 21 other states and the District of Columbia Monday in a lawsuit that seeks to prevent the federal Consumer Financial Protection Bureau from being defunded and closed by the Trump administration.

The legal action filed in U.S. District Court in Eugene, Ore. accuses Acting Director Russell Vought of trying to illegally withhold funds from the agency by unlawfully interpreting its funding statute. Also named as defendants are the agency itself and the Federal Reserve’s Board of Governors.

“For California, the CFPB has been an invaluable enforcement partner, working hand-in-hand with our office to protect pocketbooks and stop unfair business practices. But once again, the Trump administration is trying to weaken and ultimately dismantle the CFPB,” California Attorney General Rob Bonta said, in a press conference to announce the 41-page legal action.

The agency did not immediately respond to a request for comment.

Established by Congress in 2010 after the subprime mortgage abuses that gave rise to the financial crisis, the agency is funded by the Federal Reserve as a method of insulating it from political pressure.

The Dodd-Frank Act statute requires the agency’s director to petition for a reasonable amount of funding to carry out the CFPB’s duties from the “combined earnings” of the Federal Reserve System.

Prior to this year that was interpreted to mean the Federal Reserve’s gross revenue. But an opinion from the Department of Justice claims that should be interpreted to mean the Federal Reserve’s profits, of which it has none since it has been operating at a loss since 2022. The lawsuit alleges the interpretation is bogus.

“Defendant Russell T. Vought has worked tirelessly to terminate the CFPB’s operations by any means necessary — denying Plaintiffs access to CFPB resources to which they are statutorily entitled. In this action, Plaintiffs challenge Defendant Vought’s most recent effort to do so,” the federal lawsuit states.

The complaint alleges the agency will run out of cash by next month if the policy is not reversed. Bonta said he and other attorney generals have not decided whether they will seek a restraining order or temporary injunction to change the new funding policy.

Prior to the second Trump administraition, the CPFB boasted of returning nearly $21 billion to consumers nationwide through enforcement actions, including against Wells Fargo in San Francisco over a scandal involving the creation of accounts never sought by customers.

Other big cases have been brought against student loan servicer Navient for mishandling payments and other issues, as well as Toyota Motor Credit for charging higher interest rates to Black and Asian customers.

However, this year the agency has dropped notable cases. It terminated early a consent order reached with Citibank over allegations it discriminated against customers with Armenian surnames in Los Angeles County.

It also dropped a lawsuit against Zelle that accused Wells Fargo, JP Morgan Chase, Bank of America and other banks of rushing the payments app into service, leading to $870 million in fraud-related losses by users. The app denied the allegations.

Monday’s lawsuit also notes that the agency is critical for states to carry out their own consumer protection mission and its closure would deprive them of their statutorily guaranteed access to a database run by the CFPB that tracks millions of consumer complaints, as well as to other data.

Vought was a chief architect of Project 2025, a Heritage Foundation blueprint to reduce the size and power of the federal bureaucracy during a second Trump admistration. In February, he ordered the agency to stop nearly all its work and has been seeking to drastically downsize it since.

The lawsuit filed Monday is the latest legal effort to keep the agency in business.

A lawsuit filed in February by National Treasury Employees Union and consumer groups accuses the Trump administration and Vought of attempting to unconstitutionally abolish the agency, created by an act of Congress.

“It is deflating, and it is unfortunate that Congress is not defending the power of the purse,” said Colorado Attorney General Philip Weiser, during Monday’s press conference.

“At other times, Congress vigilantly safeguarded its authority, but because of political polarization and fear of criticizing this President, the Congress is not doing it,” he said.

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Federal judge weighs Trump’s claim he is immune from civil litigation over Capitol attack

Attorneys for President Trump urged a federal judge on Friday to rule that Trump is entitled to presidential immunity from civil claims that he instigated a mob’s attack on the U.S. Capitol to stop Congress from certifying the results of the 2020 election.

U.S. District Judge Amit Mehta didn’t rule from the bench after hearing arguments from Trump attorneys and lawyers for Democratic members of Congress who sued the Republican president and allies over the Jan. 6. 2021, attack.

Trump spoke to a crowd of his supporters at the “Stop the Steal” rally near the White House before the mob’s attack disrupted the joint session of Congress for certifying Democratic President Joe Biden’s electoral victory.

Trump’s attorneys argue that his conduct leading up to Jan. 6 and on the day of the riot is protected by presidential immunity because he was acting in his official capacity.

“The entire point of immunity is to give the president clarity to speak in the moment as the commander-in-chief,” Trump attorney Joshua Halpern told the judge.

The lawmakers’ lawyers argue Trump can’t prove he was acting entirely in his official capacity rather than as an office-seeking private individual. And the U.S. Supreme Court has held that office-seeking conduct falls outside the scope of presidential immunity, they contend.

“President Trump has the burden of proof here,” said plaintiffs’ attorney Joseph Sellers. “We submit that he hasn’t come anywhere close to satisfying that burden.”

At the end of Friday’s hearing, Mehta said the arguments gave him “a lot to think about” and he would rule “as soon as we can.”

Rep. Bennie Thompson, a Mississippi Democrat who chaired the House Homeland Security Committee, sued Trump, his personal attorney Rudolph Giuliani and members of the Proud Boys and Oath Keepers extremist groups over the Jan. 6 riot. Other Democratic members of Congress later joined the litigation.

The civil claims survived Trump’s sweeping act of clemency on the first day of his second term, when he pardoned, commuted prison sentences and ordered the dismissal of all 1,500-plus criminal cases stemming from the Capitol siege. Over 100 police officers were injured while defending the Capitol from rioters.

Halpern said immunity enables the president to act “boldly and fearlessly.”

“Immunity exists to protect the president’s prerogatives,” he said.

Plaintiffs’ lawyers argue that the context and circumstances of the president’s remarks on Jan. 6 — not just the content of his words — are key to establishing whether he is immune from liability.

“You have to look at what happened leading up to January 6th,” Sellers said.

Kunzelman writes for the Associated Press.

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Jury finds Judge Hannah Dugan guilty of obstruction for helping an immigrant evade federal agents

A jury found a Wisconsin judge accused of helping a Mexican immigrant dodge federal authorities guilty of obstruction Thursday, marking a victory for President Trump as he continues his sweeping immigration crackdown across the country.

Federal prosecutors charged Milwaukee County Circuit Judge Hannah Dugan with obstruction, a felony, and concealing an individual to prevent arrest, a misdemeanor, in April. The jury acquitted her on the concealment count, but she still faces up to five years in prison on the obstruction count.

The jury returned the verdicts after deliberating for six hours. Dugan faces up to five years in prison when she’s sentenced, but no date had been set as of late Thursday evening.

The case inflamed tensions over Trump’s immigration crackdown, with his administration branding Dugan an activist judge and Democrats countering that the administration was trying to make an example of Dugan to blunt judicial opposition to the operation.

Dugan and her attorneys left the courtroom, ducked into a side conference room and closed the door without speaking to reporters. Steve Biskupic, her lead attorney, later told reporters that he was disappointed with the ruling and didn’t understand how the jury could have reached a split verdict since the elements of both charges were virtually the same.

U.S. Atty. Brad Schimel denied the case was political and urged people to accept the verdict peacefully. He said courthouse arrests are safer because people are screened for weapons and it isn’t unfair for law enforcement to arrest wanted people in courthouses.

“Some have sought to make this about a larger political battle,” Schimel said. “While this case is serious for all involved, it is ultimately about a single day, a single bad day, in a public courthouse. The defendant is certainly not evil. Nor is she a martyr for some greater cause.”

U.S. Deputy Atty. Gen. Todd Blanche praised the verdict on X, saying nobody is above the law, even judges.

According to court filings that include an FBI affidavit and a federal grand jury indictment, immigration authorities traveled to the Milwaukee County courthouse on April 18 after learning 31-year-old Eduardo Flores-Ruiz had reentered the country illegally and was scheduled to appear before Dugan for a hearing in a state battery case.

Dugan learned that agents were in the corridor outside her courtroom waiting for Flores-Ruiz. She left the courtroom to confront them, falsely telling them their administrative warrant for Flores-Ruiz wasn’t sufficient grounds to arrest him and directing them to go to the chief judge’s office.

While the agents were gone, she addressed Flores-Ruiz’s case off the record, told his attorney that he could attend his next hearing via Zoom and led Flores-Ruiz and the attorney out a private jury door. Agents spotted Flores-Ruiz in the corridor, followed him outside and arrested him after a foot chase. The U.S. Department of Homeland Security announced in November he had been deported.

Prosecutors worked during Dugan’s trial to show that she directed agents to the chief judge’s office to create an opening for Flores-Ruiz to escape.

An FBI agent who led the investigation testified that after agents left the corridor, she immediately moved Flores-Ruiz’s case to the top of her docket, told him that he could appear for his next hearing via Zoom and led him out the private door.

Prosecutors also played audio recordings from her courtroom in which she can be heard telling her court reporter that she’d take “the heat” for leading Flores-Ruiz out the back.

Her attorneys countered that she was trying to follow courthouse protocols that called for court employees to report any immigration agents to their supervisors and she didn’t intentionally try to obstruct the arrest team.

Richmond writes for the Associated Press.

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Instacart settles Federal Trade Commission’s claim it deceived US shoppers | Business and Economy News

The FTC had accused the grocery delivery giant of charging fees to consumers after promising ‘free delivery’.

Instacart has agreed to pay $60m in refunds to settle allegations brought by the United States Federal Trade Commission (FTC) that the online grocery delivery platform deceived consumers about its membership programme and free delivery offers.

According to court documents filed in San Francisco on Thursday, Instacart’s offer of “free delivery” for first orders was illusory because shoppers were charged other fees, the FTC alleged.

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The agency also accused Instacart of failing to adequately notify shoppers that their free trials of its Instacart+ subscription service would convert to paid memberships and of misleading consumers about its refund policy.

“The FTC is focused on monitoring online delivery services to ensure that competitors are transparently competing on price and delivery terms,” said Christopher Mufarrige, who leads the FTC’s consumer protection work.

An Instacart spokesperson said the company flatly denies any allegations of wrongdoing, but that the settlement allows the company to focus on shoppers and retailers.

“We provide straightforward marketing, transparent pricing and fees, clear terms, easy cancellation, and generous refund policies — all in full compliance with the law and exceeding industry norms,” the spokesperson said.

The shopping platform is currently under scrutiny after a recent study by nonprofit groups found that individual shoppers simultaneously received different prices for the same items at the same stores.

The FTC is investigating the company and has demanded information about Instacart’s Eversight pricing tool, the news agency Reuters reported on Wednesday.

Instacart has said that retailers are responsible for setting prices, and that pricing tests run through Eversight are random and not based on user data.

Lindsay Owens, the executive director of the Groundwork Collaborative, an economic think tank, criticised the grocery platform for using artificial intelligence (AI) to tweak its prices.

“At a time when families are being squeezed by the highest grocery costs in a generation, Instacart chose to run AI experiments that are quietly driving prices higher,” Owens said in written remarks provided to Al Jazeera.

She also called on the administration of US President Donald Trump to take action to prevent such price manipulation from continuing into the future.

“While the FTC’s investigation is welcome news, it must be followed with meaningful action that ends these exploitative pricing schemes and protects consumers,” Owens said. “Instacart must face consequences for their algorithmic price gouging, not just a slap on the wrist.”

On Wall Street, Instacart’s stock is taking a hit on the heels of the settlement, finishing out the day down 1.5 percent.

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