package

Senate clears way for small-business aid package

The Senate on Tuesday advanced the Obama administration’s aid package for small business but failed to relieve millions of companies from onerous new tax filings, accelerating the election year debate over which party is most responsible for gridlock in Washington and lost jobs on Main Street.

Two Republicans joined Democrats in the vote to move the bill, which includes a $30-billion loan fund and other tax breaks for small businesses.

But lawmakers could not reach agreement on a way to spare small businesses from a new requirement to notify the Internal Revenue Service of every purchase of goods worth more than $600.

“I have never seen it like this,” said National Small Business Assn. President Todd McCracken, who has been lobbying Congress for more than two decades. “It is what makes small-business owners feel like their heads are going to explode.”

While the gridlock is politically risky for Republicans, it is likely to be particularly damaging to the Obama administration and congressional Democrats, who have advanced several substantial business aid packages over the last two years but are being accused of not doing enough to revive the economy.

The small-business bill that advanced Tuesday, which President Obama stumped hard to pass, would create a new government-operated fund to help smaller banks make loans to small businesses.

And it would offer $12 billion in tax breaks to encourage investment and hiring. Businesses would be able to write off more of the cost of buying new equipment and making improvements to their stores. Those who are self-employed could deduct healthcare costs. The bill would also continue to waive Small Business Administration loan fees that were cut in the 2009 recovery act.

“This bill will do more to support small businesses than any bill has in years,” said John Arensmeyer, president of Small Business Majority, a left-leaning business group.

Senators voted 61 to 37 Tuesday to end a GOP filibuster of the measure, clearing the way for passage later this week. The bill is then expected to pass quickly in the House, where Democrats hold a commanding majority.

Obama hailed the vote as a crucial step Tuesday. “This is a bill that would cut taxes and help provide loans to millions of small-business owners who create most of the new jobs in this country,” he said in a statement.

Republicans, who have long cast themselves as the champions of small business, almost unanimously opposed the package. The two GOP senators who voted for it are retiring.

Most Republican lawmakers slammed the package as misguided. “If there’s one message that my constituents have made clear, it is that they’re tired of bailouts,” said Texas Sen. John Cornyn, who heads the GOP Senate campaign committee, referring to the government backing of additional loans.

In Chicago, Roberto Carmona, chief executive of Crimson Leadership Group, a business-consulting firm with four full-time employees, said he was reserving judgment on the small-business legislation until he sees how it’s implemented.

“You see the battles, the trading,” he said. “Like all legislation, it looks one way when it’s going in.”

And although several leading business groups backed all or part of the bill, they attacked the Senate’s inability to deal with the other issue confronting small businesses: the tax reporting requirement.

R. Bruce Josten, senior lobbyist for the U.S. Chamber of Commerce, which is funding a multimillion-dollar campaign against Democratic congressional candidates nationwide, said the failure to eliminate the reporting mandate showed a “fundamental misunderstanding about the challenges facing this economy.”

The obscure section of the mammoth healthcare law that contains the burdensome IRS requirement was inserted to help offset the cost of expanding coverage to millions of uninsured Americans. It was supposed to generate approximately $17 billion over the next decade, according to the nonpartisan Joint Committee on Taxation, which Congress relies on for revenue estimates.

That plugged an important hole as Democrats struggled to keep the healthcare legislation from raising the deficit. (The law ultimately will shrink the deficit, according to final analyses of the bill).

But the provision, which goes into effect in 2012, has raised the prospect of an administrative nightmare for businesses.

“This is just one more opportunity for the government to make work,” said Richard Boehl, owner of QTE North America Inc. in Rancho Cucamonga, a small business that sells tools and supplies to machine shops and manufacturers.

“This is work that is not productive: It doesn’t produce any income; it doesn’t produce any profit. All it does is create an extra burden on the expense side of the ledger. And it’s going to bury a bunch of small businesses that are just barely hanging on, like me.”

Democrats and Republicans have said they are committed to modifying or eliminating the mandate, but they have been unable to agree on a solution.

Tuesday, Republicans blocked a Democratic proposal backed by the White House that would have scaled back the mandate by exempting businesses with 25 employees or fewer and by exempting transactions worth less than $5,000. The proposal was offset by eliminating a tax break for oil and gas companies.

Leading business groups said many businesses would still face the reporting headache.

Democrats in turn blocked a GOP proposal that would have eliminated the mandate entirely, but that also cut funding for public health programs and exempted more people from having to buy health insurance starting in 2014, a key provision designed to control premiums for everyone.

“Everyone wants to be our friend,” said McCracken at the National Small Business Assn. “But the effect is that everyone ends up being our enemy.”

noam.levey@latimes.com

lisa.mascaro@latimes.com

Andrea Chang in Los Angeles and Wailin Wong in Chicago contributed to this report.

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Unions urge Newsom and California lawmakers to rein in AI

National union leaders, including the head of one of California’s largest labor organizations, on Wednesday urged Gov. Gavin Newsom to protect workers as artificial intelligence threatens to replace or surveil employees — and warned that a failure to do so could hurt his presidential ambitions.

“This is a priority for the entire nation,” Lorena Gonzalez, president of the California Federation of Labor Unions, said at a news conference near the state Capitol. “He cannot spend his time waiting to be done in California and think he’s not going to get questions about the true issues surrounding AI, Big Tech and the Big Tech billionaires that are trying to buy our government.”

Gonzalez, a former state lawmaker from San Diego, said the federation is sponsoring a package of new bills aimed at reining in the use of AI and protecting the rights of workers, including safeguards against spying in the workplace and restrictions on layoffs.

The package of bills supported by labor organizations includes:

  • Senate Bill 947 by Sen. Jerry McNerney (D-Stockton), which would require human oversight if an algorithm is used to justify the discipline or termination of an employee.
  • Senate Bill 951, introduced by Sen. Eloise Gomez Reyes (D-Colton), which would require employers to provide a 90-day advance notice to workers and local and state governments before AI-related layoffs. It would apply to cases affecting 25 or more workers or 25% of the workforce, whichever is less. Recent layoffs, including at Amazon, Expedia and Pinterest, have been tied to AI, although some economists argue it’s challenging to determine whether that was the primary factor.
  • Assembly Bill 1331, dubbed “No bosses in the bathroom,” would grant workers the right to remove workplace surveillance tools when entering public bathrooms or certain employee-only areas. The bill, authored by Assemblymember Sade Elhawary (D-Los Angeles), would subject employers to a $500 civil penalty for violations.

Gonzalez said labor organizations are often told to “work it out” with businesses but argued this was a dead end.

“We are not going to be able to achieve guardrails by working with bosses who want no guardrails,” she said. “It is time that the governor engages with workers in the workplace. Every AI convening he does, everybody he’s pulled together is [representing] AI and Big Tech lobbyists.”

Gonzalez was joined Wednesday by Liz Shuler, president of the AFL-CIO, and other labor leaders from Iowa, Georgia, North Carolina and Nevada.

“This is the most urgent issue that we [as workers] are facing,” Shuler said. “This is a crisis and no one is prepared.”

In a joint letter addressed to Newsom, they implored the governor to act quickly to establish meaningful safeguards around the technology.

“This fight extends beyond devastating job losses and new forms of union busting,” a copy of the letter states. “There is dignity in human work that is the foundation of a healthy, productive democracy. The future of our economy and our society cannot be left to the unchecked whims of profit driven technology corporations and billionaires.”

In an email to The Times, Newsom spokesperson Tara Gallegos said the governor had a strong record of fighting for workers’ rights, including raising the minimum wage and expanding sick leave and other worker protections.

“No Governor has done more than Governor Gavin Newsom to regulate AI in a way that protects workers without killing jobs or innovation,” she wrote. “Under his leadership, California has taken the most comprehensive, worker-centered approach to AI in the country.”

Adults in the United States are growing increasingly concerned about the ramifications of AI, according to a survey from the Pew Research Center. Fifty percent of those surveyed last year said they are “more concerned than excited” about the increased use of AI in daily life, up from 37% in 2021.

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GOP leaders sound increasingly confident they can pass a spending package and end partial shutdown

Speaker Mike Johnson’s ability to carry out President Trump’s “play call” for funding the government will be put to the test on Tuesday as the House votes on a bill to end the partial shutdown.

Johnson will need near-unanimous support from his Republican conference to proceed to a final vote, but he and other GOP leaders sounded confident during a Tuesday morning press conference that they will succeed. Johnson can afford to lose only one Republican on party line votes with perfect attendance, but some lawmakers had threatened to tank the effort if their priorities are not included. Trump weighed in with a social media post, telling them, “There can be NO CHANGES at this time.”

“We will work together in good faith to address the issues that have been raised, but we cannot have another long, pointless, and destructive Shutdown that will hurt our Country so badly — One that will not benefit Republicans or Democrats. I hope everyone will vote, YES!,” Trump wrote on his social media site.

The measure would end the partial government shutdown that began Saturday, funding most of the federal government through Sept. 30 and the Department of Homeland Security for two weeks as lawmakers negotiate potential changes for the agency that enforces the nation’s immigration laws — U.S. Immigration and Customs Enforcement, or ICE.

“The Republicans are going to do the responsible thing,” Johnson said.

Running Trump’s ‘play call’

The House had previously approved a final package of spending bills for this fiscal year ending Sept. 30, but the Senate broke up that package so that more negotiations could take place for the Homeland Security funding bill. Democrats are demanding changes in response to events in Minneapolis, where two American citizens were shot and killed by federal agents.

Johnson said on Fox News Channel’s “Fox News Sunday” it was Trump’s “play call to do it this way. He had already conceded he wants to turn down the volume, so to speak.” But GOP leaders sounded as if they still had work to do in convincing the rank-and-file to join them as House lawmakers returned to the Capitol on Monday after a week back in their congressional districts.

“We always work till the midnight hour to get the votes,” said House Majority Leader Steve Scalise, R-La. “You never start the process with everybody on board. You work through it, and you could say that about every major bill we’ve passed.”

The funding package passed the Senate on Friday. Trump says he’ll sign it immediately if it passes the House. Some Democrats are expected to vote for the final bill but not for the initial procedural measure setting the terms for the House debate, making it the tougher test for Johnson and the White House.

Democratic leader Hakeem Jeffries has made clear that Democrats wouldn’t help Republicans out of their procedural jam, even though Senate Democratic leader Chuck Schumer helped negotiate the funding bill.

Jeffries, of New York, noted that the procedural vote covers a variety of issues that most Democrats oppose, including resolutions to hold former President Bill Clinton and former Secretary of State Hillary Clinton in contempt of Congress over the Jeffrey Epstein investigation.

“If they have some massive mandate,” Jeffries said of Republicans, “then go pass your rule, which includes toxic bills that we don’t support.”

Key differences from the last shutdown

The path to the current partial shutdown differs from the fall impasse, which affected more agencies and lasted a record 43 days.

Then, the debate was over extending temporary coronavirus pandemic-era subsidies for those who get health coverage through the Affordable Care Act. Democrats were unsuccessful in getting those subsidies included as part of a package to end the shutdown.

Congress has made important progress since then, passing six of the 12 annual appropriations bills that fund federal agencies and programs. That includes important programs such as nutrition assistance and fully operating national parks and historic sites. They are funded through Sept. 30.

But the remaining unpassed bills represent roughly three-quarters of federal spending, including the Defense Department. Service members and federal workers could miss paychecks depending upon the length of the current funding lapse.

Voting bill becomes last-minute obstacle

Some House Republicans have demanded that the funding package include legislation requiring voters to show proof of citizenship before they are eligible to participate in elections. Rep. Anna Paulina Luna, R-Fla., had said the legislation, known as the SAVE Act, must be included in the appropriations package.

But Luna appeared to drop her objections late Monday, writing on social media that she had spoken with Trump about a “pathway forward” for the voting bill in the Senate that would keep the government open. Luna and Rep. Tim Burchett, R-Tenn., met with Trump at the White House.

The Brennan Center for Justice, a think tank focused on democracy and voting rights issues, said the voting bill’s passage would mean that Americans would need to produce a passport or birth certificate to register to vote and that at least 21 million voters lack ready access to those papers.

“If House Republicans add the SAVE Act to the bipartisan appropriations package it will lead to another prolonged Trump government shutdown,” said Schumer, of New York. “Let’s be clear, the SAVE Act is not about securing our elections. It is about suppressing voters.”

Johnson, of Louisiana, has operated with a thin majority throughout his tenure as speaker. But with Saturday’s special election in Texas, the Republican majority stands at a threadbare 218-214, shrinking the GOP’s ability to withstand defections.

Freking writes for the Associated Press. AP video journalist Nathan Ellgren and writer Lisa Mascaro contributed to this report.

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I tried Thomas Cook’s first ever package holiday 185 years after it launched

DID you know the first package holiday was actually in the UK, nearly 200 years ago?

My boys aged 13, 11 and six are all big steam train fans and we’ve had some amazing days out on heritage railways around the country. 

Thomas Cook’ for his’s first ever package holiday excursion around 185 years ago was between Leicester and LoughboroughCredit: Alamy
Travel writer Catherine Lofthouse’s boys on the Great Central Railway todayCredit: Catherine Lofthouse

But what we didn’t realise riding the rails here in the Midlands, is that we were retracing a route that replicates the one chosen by package holiday pioneer Thomas Cook for his first ever excursion, some 185 years ago.

The stretch of track he used became so popular in Victorian times that a new line was eventually built to get passengers about, and you can still board heritage trains on the Great Central Railway today.

Nowadays, holidays offered by tour operators are all about flying abroad, fun in the sun and food and drink on tap.

But back then, a train trip between Leicester and Loughborough launched the concept of paying once and having all your needs met.

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About 500 passengers paid a shilling each for the trip, which included travel, refreshments and entertainment from a brass band.

Booze was a no-no as Thomas Cook and his first tourists were part of the temperance movement – it’s safe to say that things have moved on a bit since that first package holiday in 1841…

One thing that remains the same is that the Great Central Railway still offers a great family-friendly day out, with steam and diesel trains running on its eight-mile line between Leicester North and Loughborough.

If you’re looking for something to do over February halfterm, it’s the perfect option as it’s fantastic fun in all weathers and for all generations.

It’s lovely getting all cosy inside an old-fashioned carriage, enjoying the great British countryside passing by your window.

Some of our best trips have actually been on rainy days as the train tracks run alongside fields, woodland and even Swithland Reservoir so there is lots of wildlife to spot, without getting wet.

There are several old stations en route where you can hop on and off to enjoy kids’ activities, model railways, cafes and lots of heritage touches that bring the golden age of rail travel back to life.

Kids can ride for a quid at some points throughout the year and last year there was also a cut-price ticket for locals, so if you time your visit right or live nearby, you can bag a bargain day out.

There are several old stations en route where you can hop on and off to enjoy kids’ activities, model railways, cafes and lots of heritage touchesCredit: Catherine Lofthouse
Kids can ride for a quid at some points throughout the yearCredit: Catherine Lofthouse

There’s a couple of things you’ll want to bear in mind if you do decide to head to the Great Central Railway.

It’s not open every day so check out the website to find which trains are running when and for ticket prices, which can change depending on the season and what’s on offer.

There are special events throughout the year, including character appearances from family favourites like Paw Patrol or the Snowman.

Parking at Loughborough is on the road outside the station, so it can be tricky to find a space on busy days.

We usually head to Quorn to catch the train up and down the line from there, as it’s got a big car park and often has kids activities in its marquee. The other two stations also have parking.

There’s a small branch line to Mountsorrel and Rothley Community Heritage Centre, which only occasionally has trains running on it.

But if you can time your visit to coincide with the branch line being open, the heritage centre itself is well worth a visit, with a playground, den-building, woodland trails, a narrow gauge railway where you can take a short ride and a model train track where visitors can have a go at the controls for Thomas the Tank Engine or one of his friends.

It’s exciting times for the Great Central Railway, which is in the middle of a multimillion pound project to reconnect two stretches of track.

passengers will be able to travel on heritage trains for 18 miles between Nottingham and Leicester North for the first time since the line was axed in the 1960s and a small part of the track was built over.

So it’s full steam ahead for this half term and beyond.

Rothley station on the Great Central Railway, a heritage steam railway running between Loughborough and LeicesterCredit: Alamy
The train now arriving… Great Central RailwayCredit: Alamy

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The beautiful African island with white sand beaches, no jet lag and cheap package holidays

FANCY a holiday? This island is the perfect place for winter sun with highs of 26C this week.

Found in Cape Verde, the main island of Sal has sandy beaches, bright blue seas – and what’s even better is there’s no jet lag for Brits either.

Package holidays can cost as little as £399 on the island of SalCredit: Agua Hotels
Santa Maria is the most popular area on the islandCredit: Alamy

Despite its fairly long flight time of six hours, Cape Verde off the coast of west Africa doesn’t result in jet lag for Brits as it’s just one hour behind GMT.

Throughout February, there are average daily highs between 23-25C, minimal rainfall and as many as eight hours of daily sunshine.

Cape Verde is made up of 10 islands – its most popular is Sal which is known for its sunny, dry climate and pretty golden sand beaches.

One of the popular activities on the island is due to the strong winds, which make it a great destination for surfing and kitesurfing.

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Must-see attractions include the glowing, natural pool of the Blue Eye (called Buracona), the salt flats of Pedra de Lume, and even shark spotting.

Sal’s capital is Espargos, but most holidaymakers head to Santa Maria which is where most of the hotels are located along with lots of shops, restaurants and bars.

When it comes to choosing where to stay in Sal – there’s plenty of choice and some holidays come in at under £400.

A seven-night stay at the Agua Hotels Sal Vila Verde Resort from February 26, 2026 costs just £399pp with loveholidays.

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It’s a four-star self-catering hotel with rooms across four floors and all come with a private bathroom that has both a shower and bath.

Each apartment also comes with a fully-equipped kitchen, TV and aircon.

The hotel has an outdoor pool with a dedicated children’s swimming area surrounded by sun loungers and parasols – there’s a kids’ club too.

There’s an on-site restaurant that serves buffet-style breakfast and a poolside bar.

Nearby are watersports facilities and bike hire, the beach is just a 20-minute walk away, or there’s a free shuttle bus

And the price includes direct flights from Manchester Airport with easyJet.

Staying at Agua Hotels Sal Vila Verde Resort can be as little as £399ppCredit: Agua Hotels

TUI also offers a stay at the Agua Hotels Sal Vila Verde on the same dates flying from Glasgow from £534pp (based on a room-only stay).

Or opt for an all-inclusive with TUI at the Sol Dunas resort across seven-nights from February 23, 2026 flying from London Gatwick from £781pp.

It’s not just the hotels that are cheap on Sal, your food and drink won’t cost a lot either.

A mid-range three course meal for two people costs around £39.28.

Coffee will set you back just £1.53 and a pint will set you back between £1.65 and £2.59.

It’s easy to island hop too if you want to head to the likes of Boa Vista – the journey between the two takes just 25-minutes and one-way flights in February start at £44.

Boa Vista is known for having beautiful beaches too, and it’s home to loggerhead turtles.

Find out what one Sun Travel Editor got up to during a visit to Cape Verde…

Here are Deputy Travel Editor Kara Godfrey’s highlights from her visit to Cape Verde…

“The islands in the Atlantic Ocean, just 350 miles off the west coast of Africa, celebrate 50 years of independence this year and I’m exploring Boa Vista, the lesser-developed island often overlooked in favour of its busier sister, Sal.

“Tour giant TUI has just added extra flights from the East Midlands to the island, starting next weekend, in addition to its flights from Gatwick.

“My guide Paolo gave me a brief insight into the history of the island, colonised by the Portuguese until 1975.

“We learn of morna music — created by the indigenous population when they were enslaved by both African nations and Portugal — slow, danceable rhythms with tales of love and longing for the homeland.

“And one can understand their longing to return when you discover Boa Vista’s blissfully quiet beaches. Santa Monica, on the southeast of the island, is the finest in Cape Verde and often named as one of the best in the world by Tripadvisor.

“Despite the abandoned apartment complex overlooking the beach (left half-finished for decades), the rest of the beach is almost as idyllic as any in the Maldives.

“I was the only person there, sinking my toes into the soft golden sand, so powdery it almost felt like flour.

“My other favourite beach was Praia Carlota, where you can lose the days in the hippy Morabeza beach hut, chilling out while enjoying fried fish and local Strela beer and admiring the soaring kite-surfers braving the winds that whip across the waters.”

Here’s more about how it will soon become even EASIER to island hop on Cape Verde.

And here are the ten best things to do in Cape Verde, from turtle-watching to desert-biking.

Sal in Cape Verde has cheap holidays, beautiful beaches and highs of 23C in FebruaryCredit: Alamy

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Partial federal shutdown seems increasingly likely as Democrats demand major changes to ICE

Democratic senators are narrowing a list of demands for changes to U.S. Immigration and Customs Enforcement with a partial government shutdown looming by week’s end, hoping to pressure Republicans and the White House as the country reels from the deaths of two people at the hands of federal agents in Minneapolis.

Senate Minority Leader Chuck Schumer (D-N.Y.) has not yet outlined what his caucus will ask for before a crucial Thursday vote on whether to move forward with spending legislation that funds the Department of Homeland Security and a swath of other government agencies. Democrats were to meet Wednesday and discuss several possible demands, including forcing agents to have warrants and identify themselves before immigration arrests, and they have pledged to block the spending bill in response to the violence.

“This madness, this terror must stop,” Schumer said, calling for immediate changes to ICE and U.S. Border Patrol.

Senate Majority Leader John Thune (R-S.D.) has said he is waiting for Democrats to outline what they want and he suggested that they need to be talking to the White House.

It was unclear how seriously the White House was engaged and whether the two sides could agree on anything that would appease Democrats who are irate after federal agents fatally shot U.S. citizens Renee Good and Alex Pretti this month.

With no evident negotiations underway, a partial shutdown appeared increasingly likely starting Saturday.

Democrats weigh their demands

As the Republican administration pursues its aggressive immigration enforcement surge nationwide, Democrats have discussed several potential demands in the Homeland Security bill.

Those includes requiring judicial warrants for immigration arrests, mandating that federal agents have to identify themselves, ending arrest quotas, sending agents back to the border and forcing DHS to cooperate with state and local authorities in investigations into any incidents such as the two shooting deaths in Minnesota.

Sen. Chris Murphy (D-Conn.) said Democrats are looking at changes that will “unite the caucus, and I think unite the country,” including ending the “roving patrols” that Democrats say are terrorizing Americans around the country.

“None of this is revolutionary,” said Murphy, the top Democrat on the subcommittee that oversees Homeland Security spending. “None of this requires a new comprehensive piece of legislation.”

Schumer and Murphy have said any fixes should be passed by Congress, not just promised by the administration.

“The public can’t trust the administration to do the right thing on its own,” Schumer said.

Republicans say any changes to the spending would need to be passed by the House to prevent a shutdown, and that is not likely to happen in time because the House is not in legislative session this week.

“We can have conversations about what additional oversight is required, what additional laws we should consider, but not at the expense of shutting down the government,” said Sen. John Cornyn (R-Texas).

Many obstacles to a deal

Despite some conversations among Democrats, Republicans and the White House, it was unclear whether there could be a resolution in time to avoid a partial shutdown.

The House passed the six remaining funding bills last week and sent them to the Senate as a package, and that makes it difficult to strip out the Homeland Security portion as Democrats are demanding. Republicans could break the package apart with the consent of all 100 senators, which would be complicated, or through a series of votes that would extend past the Friday deadline.

It was unclear whether President Trump would weigh in.

Republican leaders had hoped to avoid another shutdown after last fall’s 43-day closure that revolved around Democrats’ insistence on extending federal subsidies that make health coverage more affordable for those enrolled in the Affordable Care Act marketplace.

Even if the Senate could resolve the issue, House Republicans have made clear they do not want any changes to the bill they have passed. In a letter to Trump on Tuesday, the conservative House Freedom Caucus wrote that its members stand with the president and ICE.

“The package will not come back through the House without funding for the Department of Homeland Security,” according to the letter.

Democrats say they won’t back down.

“It is truly a moral moment,” said Sen. Richard Blumenthal (D-Conn.). “I think we need to take a stand.”

Jalonick and Freking write for the Associated Press.

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Hanwha pitches broad defense package to boost bid for Canada submarine

Canadian Prime Minister Mark Carney (2nd R) and Canadian Defense Minister David McGuinty (L), accompanied by South Korean Prime Minister Kim Min-seok (2nd L) and Hanwha Group Vice Chairman Kim Dong-kwan, inspect South Korea’s first 3,600-ton-class naval submarine, named Jang Yeong-sil, during their visit to Hanwha Ocean Co.’s shipyard on Geoje Island in South Gyeongsang Province, southeastern South Korea, 30 October 2025. File. Photo by YONHAP / EPA

Jan. 27 (Asia Today) — South Korea’s Hanwha Group is mounting an unusually broad industrial and technology campaign to strengthen its bid for Canada’s multibillion-dollar next-generation submarine program, extending its proposal well beyond shipbuilding to include steel, artificial intelligence and space-based infrastructure.

Hanwha said Monday that its defense units are offering what it described as a comprehensive “K-defense package” tailored to Canada’s emphasis on local industrial participation and economic offsets under its Canadian Patrol Submarine Project.

At the Korea-Canada Industrial Cooperation Forum held in Toronto on Sunday, Hanwha Ocean and Hanwha Systems signed memorandums of understanding with Canadian partners across five sectors: steel, AI, satellite communications, space technology and electro-optics.

As part of the effort, Hanwha Ocean agreed to cooperate with Algoma Steel, Canada’s largest steel producer. The agreement includes plans to invest about 345 million Canadian dollars to help establish a stable steel supply chain in Canada for submarine construction and long-term maintenance, repair and overhaul work, contingent on winning the contract. Hanwha said the approach goes beyond material procurement by directly supporting local manufacturing capacity.

In AI, Hanwha Ocean and Hanwha Systems signed a three-party MOU with Canadian startup Cohere to jointly develop specialized AI tools for shipbuilding, including production planning, design and manufacturing, as well as submarine system integration and operations. Cohere, which has received backing from companies such as Nvidia and Oracle, is valued at more than $7 billion, according to industry estimates.

Hanwha Systems also reached agreements with Telesat on low-Earth orbit satellite communications and with MDA Space and PV Labs on defense-related satellite and electro-optical technologies. The companies plan to link satellite platforms with Hanwha’s defense electronics to provide secure communications, command and control and data resilience for submarine operations.

The submarine bid has drawn strong backing from the South Korean government. Senior officials, including Presidential Chief of Staff Kang Hoon-sik and Trade, Industry and Energy Minister Kim Jeong-kwan, accompanied the delegation to Canada in what Seoul described as full-scale “sales diplomacy.” The government has designated the submarine project a national strategic export and proposed expanding cooperation to other sectors such as automobiles and hydrogen energy.

Consulting firm KPMG estimated that Hanwha’s proposed industrial cooperation framework could generate more than 200,000 person-years of employment in Canada between 2026 and 2040, a projection seen as a powerful selling point in a country where job creation and regional economic development are key political priorities.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260127010012673

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