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House Budget Committee advances ‘Big Beautiful Bill” in late Sunday session

May 18 (UPI) — The House Budget Committee advanced President Donald Trump‘s “One Big Beautiful Bill Act” in a rare Sunday night vote.

They met at 10 p.m. to consider the bill that extends Trump’s tax cuts, increases border funding priorities and requires Medicaid recipients to work.

The measure passed 17-16 along party lines, with four Republicans who rejected the bill the first time on Friday voting present Sunday: Ralph Norman of Oklagoa, Chip Roy of Texas, Andrew Clyde of Georgia and Josh Brecheen of Oklahoma. They voted against the bill Friday, preventing it from advancing then.

Roy said he voted present “out of respect for the Republican Conference and the president,” but doesn’t support the bill as it stands.

He posted on X: “The bill does not yet meet the moment — leaving almost half of the green new scam subsidies continuing. More, it fails to end the Medicaid money laundering scam and perverse funding structure that provides seven times more federal dollars for each dollar of state spending for the able-bodied relative to the vulnerable. This all ultimately increases the likelihood of continuing deficits and non-Obamacare-expansion states like Texas expanding in the future. We can and must do better before we pass the final product.”

He is looking forward to getting the bill way he wants it. “It gives us the opportunity to work together this week to get the job done in light of the fact our bond rating was dropped yet again due to historic fiscal mismanagement by both parties,” he wrote. “This bill is a strong step forward.”

Speaker Mike Johnson, R-Ky., said he was pleased the bill advances.

“There’s a lot more work to do, we’ve always acknowledged that towards the end there will be more details to iron out, we have several more to take care of,” Johnson said. “But I’m looking forward to very thoughtful discussions, very productive discussions over the next few days, and I am absolutely convinced we’re going to get this in final form and pass it in accordance with our original deadline, and that was to do it before Memorial Day.

“So this will be a victory out of committee tonight, everybody will make a vote that allows us to proceed and that was my big request tonight.”

The bill for fiscal year 2026, which begins Oct. 1, is 1,116 pages and is worth roughly $7 trillion. The last time Congress passed all 12 regular appropriations bills on time, before the start of a new fiscal year, was in 1996. Since then, Congress has relied heavily on continuing resolutions and omnibus appropriations bills to fund the government.

In fiscal year 2024, the federal government spent $6.8 trillion.

Before the meeting, Johnson said on Fox News Sunday he was optimistic the bill will past the House by the end of this week. Some Republican hardliners and moderates have opposed the bill along with all Democrats.

“We’re on track, working around the clock to deliver this nation-shaping legislation for the American people as soon as possible,” Johnson said. “All 11 of our committees have wrapped up their work, and they spent less and saved more than even we’ve projected initially. This really is a once-in-a-generation opportunity that we have here.”

The bill next gets put before the Rules Committee with a 9-4 Republican majority including Norman and Roy. In the full House, Republicans have just a 220-213 advantage with two vacancies after two Democrats died.

“It’s very important for people to understand why we’re being so aggressive on the timetable and why this really is so important,” Johnson said earlier Sunday. “This is the vehicle through which we will deliver on the mandate the American people gave us during the last election. You’re going to have historic savings for the American people, historic tax relief for American workers, historic investments in border security.

“At the same time, we’re restoring American energy dominance, and we’re rebuilding the defense industrial base, and we’re ensuring that programs like Medicaid and SNAP are strengthened for U.S. citizens who need and deserve them and not being squandered away by illegal aliens and persons who are ineligible to receive them and are cheating the system.”

On Friday, Budget Committee hard-liners blocked the package from moving forward — mainly over when Medicaid work requirements will commence. Under the current legislation, Medicaid requirements will kick in during 2029. Some conservatives want it to start as soon as 2027.

Norman, who voted against advancing the bill, earlier told CNN on Saturday that the earlier date was necessary for his vote.

The Center on Budget and Policies Priorities estimates 36 million Medicaid enrollees could be at risk of losing coverage because of potential work requirements and other factors.

In December, there were 78,532,341 on Medicaid and the Children’s Health Insurance Program, or CHIP, according to the agency. That includes 71,275,237 enrolled in Medicaid and 7,257,104 in CHIPS.

“Some of the states have — it takes them some time,” Johnson said. “We’ve learned in this process to change their systems and to make sure that these stringent requirements that we will put on that to eliminate fraud, waste and abuse, can actually be implemented. So, we’re working with them [hardliners] to make sure what the earliest possible date is to put into law something that will actually be useful. I think we’ve got to compromise on that. I think we’ll work it out,” Johnson claimed.”

If the House passes a bill, it goes to the Senate. Johnson said he hopes the Senate won’t alter the bill, which means it goes back to the House.

“The package that we send over there will be one that was very carefully negotiated and delicately balanced, and we hope that they [Senate] don’t make many modifications to it, because that will ensure its passage quickly,” he said.

Holdouts also want to accelerate the phasing out of tax credits for green energy projects under the Inflation Reduction Act.

The bill also includes a big increase for the Defense Department and to national security. There are cuts to federal health and nutrition programs and energy programs.

It’s a balancing act for Johnson because some changes may anger House moderates. They are phasing out the tax credits and cuts to Medicaid benefits. Trump has vowed not to cut Medicaid.

Some swing-district House Republicans want to raise the tax rate on top earners to offset the cost of lifting the cap on how much their constituents can deduct in their state and local taxes, known as SALT.

“Allowing the top tax rate to expire and returning from 37% to 39.6% for individuals earning $609,350 or more and married couples earning $731,200 or more breathes $300 billion of new life into the One Big, Beautiful Bill,” Rep. Nick LaLota of New York told CNN on Saturday.

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BLET, New Jersey Transit reach tentative agreement, ending three-day strike

Members of the Brotherhood of Locomotive Engineers and Trainmen went on strike early Friday in demand of better pay from New Jersey Transit. On Sunday, both sides announced a tentative deal had been reached, ending the three-day strike. Photo by Brotherhood of Locomotive Engineers and Trainmen/X

May 18 (UPI) — Negotiators from the state of New Jersey and the union representing hundreds of locomotive engineers announced they reached a tentative agreement on Sunday, ending the first statewide transit strike in four decades.

Terms of the agreement were not made public, but the Brotherhood of Locomotive Engineers and Trainmen union had sought a pay raise for its 450 members. BLET said in a statement that the agreement will be sent to its members and its specifics will be publicized after they’ve had a chance to review it.

“While I won’t get into the exact details of the deal reached, I will say that the only real issue was wages, and we were able to reach an agreement that boosts hourly pay beyond the proposal rejected by our members last month and beyond where we were when NJ Transit’s managers walked away from the table Thursday evening,” said Tom Haas, BLET’s general chairman at NJ Transit.

The union went on strike Friday at 12:01 a.m. after negotiations abruptly ended hours earlier. An agreement to prevent a strike had been reached by the union and NJ Transit in late March but members voted 87% against it in mid-April.

It was the first statewide transit strike in 42 years.

The office of New Jersey Gov. Phil Murphy confirmed in a statement that rail transit will resume in the state, with regular weekday train service to start Tuesday, as inspections and other maintenance work following the work stoppage will take about 24 hours to complete.

“This agreement reflects the commitment of both the BLET and NJ Transit to remain at the table engaging in productive conversations, and I commend them both,” Murphy said. “Most importantly, it ensures the resumption of rail service for the 100,000 people who depend on our rail system on a daily basis.”

The tentative agreement must next be ratified by BLET members and approved by the NJ Transit Board of Directors.

The main issue that held up negotiators was pay. BLET had said that its members were the lowest paid of all locomotive engineers working for a major commuter railroad in the nation and that it was seeking a comparable wage for its 450 members.

Ahead of the strike, NJ Transit estimated that more than 350,000 daily riders would be negatively affected by the work stoppage.

The Partnership for New York City has estimated that every hour commuters are delayed getting to work due to NJ Transit rail being out of service costs New York City employers nearly $6 million.

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Capital One completes acquisition of Discover

Capital One’s acquisition of Discover closed on Sunday, the two companies announced in a press release. File photo by Peter Foley/EPA

May 18 (UPI) — Capital One Financial services has completed its acquisition of former credit card rival Discover Financial Service, the companies announced on Sunday.

Capital One announced its intentions to acquire Discover in February 2024, stockholders of both companies voting in favor of the $35 billion deal a year later and federal regulators approving it in April.

“This deal brings together two innovative, mission-driven companies that together are poised to deliver breakthrough products and experiences to consumers, businesses, and merchants,” Capital One CEO and founder Richard D. Fairbank said in a press release.

Fairbank added in the statement that the new company will continue its quest to “change banking for goods for millions of customers.”

Capital One expanded its board of directors from 12 to 15 to handle the expanded company, and added that Capital One and Discover cardholders do not need to take any action and would be advised them of any future changes, “and will continue to be served through their respective Capital One and Discover tools and channels,” the release said.

The statement said the company will continue to issue both Capital One and Discover cards for the foreseeable future, in addition to the other cards it already makes available.

“The combination of our two companies will increase competition in payment networks, offer a wider range of products to our customers, increase our resources devoted to innovation and security, and bring meaningful community benefits,” Interim CEO and President of Discover, Michael Shepherd said when federal regulators approved the deal in April.

The deal could expand the number of places that accept the Capital One card, as it will move to the Discover network, allowing it to be more competitive with Visa and Mastercard, especially outside the United States.

A report by the customer watchdog J.D. Power showed that both Capital One and Discover score high approval ratings among their card holders.

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House Budget Committee plans late Sunday vote on ‘Big Beautiful Bill”

May 18 (UPI) — The House Budget Committee has scheduled a rare Sunday night session in an attempt to advance President Donald Trump‘s “One Big Beautiful Bill Act.”

The panel of 21 Republicans and 16 Democrats plans to convene at 10 p.m. Committee passage of the bill is necessary to put it on the floor for a vote later this week and before Memorial Day. Congress needs to pass the budget bill by July, mainly because of a deadline in mid-July to address the debt limit and avoid a default.

The bill for fiscal year 2026, which begins Oct. 1, is 1,116 pages and roughly $7 trillion. The last time Congress passed all 12 regular appropriations bills on time, before the start of a new fiscal year, was in 1996. Since then, Congress has relied heavily on continuing resolutions and omnibus appropriations bills to fund the government.

In fiscal year 2024, the federal government spent $6.8 trillion.

House Speaker Mike Johnson said on Fox News Sunday that Republicans still are “on track” to pass the bill by the end of this week. Some Republican hardliners and moderates have opposed to the bill along with all Democrats.

“We’re on track, working around the clock to deliver this nation-shaping legislation for the American people as soon as possible,” Johnson said. “All 11 of our committees have wrapped up their work, and they spent less and saved more than even we’ve projected initially. This really is a once-in-a-generation opportunity that we have here.”

If the Budget Committee passes the bill, it goes before the Rules Committee. In the House, Republicans have a 220-213 majority with two vacancies after two Democrats died.

“It’s very important for people to understand why we’re being so aggressive on the timetable and why this really is so important,” Johnson said. “This is the vehicle through which we will deliver on the mandate the American people gave us during the last election. You’re going to have historic savings for the American people, historic tax relief for American workers, historic investments in border security.

“At the same time, we’re restoring American energy dominance, and we’re rebuilding the defense industrial base, and we’re ensuring that programs like Medicaid and SNAP are strengthened for U.S. citizens who need and deserve them and not being squandered away by illegal aliens and persons who are ineligible to receive them and are cheating the system.”

On Friday, Budget Committee hard-liners blocked the package from moving forward — mainly over when Medicaid work requirements will commence. Under the current legislation, Medicaid requirements will kick in during 2029. Some conservatives want it to start as soon as 2027.

South Carolina Rep. Ralph Norman, who voted against advancing the bill, told CNN on Saturday that the earlier date was necessary for his vote. Another key budget holdouts are Chip Roy of Texas, Josh Brecheen of Oklahoma and Andrew Clyde of Georgia.

The Center on Budget and Policies Priorities estimates 36 million Medicaid enrollees could be at risk of losing coverage because of potential work requirements and other factors.

In December, there were 78,532,341 on Medicaid and the Children’s Health Insurance Program, or CHIP, according to the agency. That includes 71,275,237 enrolled in Medicaid and 7,257,104 in CHIPS.

“Some of the states have — it takes them some time,” Johnson said. “We’ve learned in this process to change their systems and to make sure that these stringent requirements that we will put on that to eliminate fraud, waste and abuse, can actually be implemented. So, we’re working with them [hardliners] to make sure what the earliest possible date is to put into law something that will actually be useful. I think we’ve got to compromise on that. I think we’ll work it out,” Johnson claimed.”

If the House passes a bill, it goes to the Senate. Johnson said he hopes the Senate won’t alter the bill, which means it goes back to the House.

“The package that we send over there will be one that was very carefully negotiated and delicately balanced, and we hope that they [Senate] don’t make many modifications to it, because that will ensure its passage quickly,” he said.

Holdouts also want to accelerate the phasing out of tax credits for green energy projects under the Inflation Reduction Act.

The bill also includes a big increase for the Defense Department and to national security. There are cuts to federal health and nutrition programs and energy programs.

It’s a balancing act for Johnson because some changes may anger House moderates. They are phasing out the tax credits and cuts to Medicaid benefits. Trump has vowed not to cut Medicaid.

Someswing-district House Republicans want to raise the tax rate on top earners to offset the cost of lifting the cap on how much their constituents can deduct in their state and local taxes, known as SALT.

“Allowing the top tax rate to expire and returning from 37% to 39.6% for individuals earning $609,350 or more and married couples earning $731,200 or more breathes $300 billion of new life into the One Big, Beautiful Bill,” Rep. Nick LaLota of New York told CNN on Saturday.

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Trump administration eyes regional tariffs as global deal deadline looms

Treasury Secretary Scott Bessent, pictured speaking last month during a Congressional hearing, on Sunday called the Moody’s downgrading of the United States’ credit rating a “lagging indicator.” File Photo by Bonnie Cash/UPI | License Photo

May 18 (UPI) — The United States may impose regional tariffs rather than issue blanket ones as a deadline approaches for racing a global plan, Treasury Secretary Scott Bessent said Sunday.

The Trump administration originally said it would impose 90 deals in 90 days, but has backed down recently, acknowledging the complexities of negotiating trade pacts with dozens of countries on a compressed timeline, despite stepped-up efforts, President Donald Trump said during his recent trip to the Middle East.

“But it’s not possible to meet the number of people that want to see us,” Trump explained.

Trump said while in the Middle East that he and Commerce Secretary Scott Lutnick would begin advising some countries on U.S. plans for tariffs in the next two to three weeks.

During an appearance on CNN’s “State of the Union,” Bessent said the United States will focus on a short list of countries in its initial round of tariffs.

“My other sense is that we will do a lot of regional deals,” Bessent said. “This is the rate for Central America, this is the rate for this part of Africa, but what we are focused on right now is the 18 important trading relationships.”

Following a move by Moody’s Ratings last week to downgrade the United States’ credit rating, Bessent called the service a “lagging indicator” during an appearance on NBC’s “Meet the Press.”

“I think that’s what everyone thinks of credit agencies,” he said, and asserted that the credit downgrade was in response to Biden fiscal policies.

In response to concerns about tariff costs being passed on to consumers, Trump has said large merchants like WalMart, which imports a significant amount of its merchandise from China, should instead absorb the price increases.

Bessent said Sunday that WalMart CEO Doug McMillion told him that the retail giant would “eat some of the tariffs” as it had done in previous years.

Bessent did not offer a specific date for the tariff imposition.

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1 dead, 3 injured in Las Vegas Athletic Club Shooting; suspect killed

May 17 (UPI) — A man with a long gun entered a Las Vegas Athletic Club gym Friday afternoon and killed an employee and injured three others before police shot and killed him.

The shooting occurred at about 1:30 p.m. PDT at the LVAC location on Lake Mead and Rainbow Blvd. in northwest Las Vegas, the Las Vegas Review-Journal reported.

Athletic club officials on Saturday identified the deceased shooting victim as longtime employee Edgar Quinonez.

“Edgar was a beloved part of the LVAC family for 15 years,” the LVAC said Saturday in an Instagram post.

“In that time he became so much more than a colleague. He was a source of kindness, dedication and positivity,” the LVAC said. “His presence touched the lives of so many members and teammates, and his impact will never be forgotten.

“We are praying for Edgar’s family, friends and everyone who had the privilege of knowing him. He will be deeply missed.

Local police responded to the scene within minutes of the shooting and shot the suspect, who was taken to a local hospital and pronounced dead.

The three surviving shooting victims were taken to a nearby hospital for treatment.

Police have not revealed the shooter’s name or a possible motive for the attack.



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1 dead, 5 injured by ‘intentional’ Palm Springs, Calif., car explosion

May 17 (UPI) — A car explosion killed one and injured five in Palm Springs, Calif., Saturday morning during what local police are calling an “intentional act.”

The explosion happened in a parking lot at 1199 N. Indian Canyon about 11 a.m. and damaged several buildings, Palm Springs Police Chief Andy Mills said in a Facebook post.

“The blast appears to be an intentional act of violence,” Mills said. “The blast field extends for blocks with several buildings damaged – some severely.”

Mills said the “incident appears to be isolated,” and FBI investigators are on the scene. The identity of the deceased person is unknown.

The FBI’s Los Angeles field office confirmed it is investigating the explosion.

“FBI assets being deployed include investigators, bomb technicians and an evidence response team,” the FBI Los Angeles said in a post on X.

Several medical facilities are located within and near the blast area, including the Desert Regional Medical Center, NBC News reported.

Some windows were damaged at the medical center in a medical office building that was facing the explosion, hospital spokesman Rich Ramhoff told the Desert Sun.

Although it is open and fully operational, access is limited due to the police response.

Hospital officials ask visitors to stay away until full access is restored on local streets.

An American Reproductive Centers fertility clinic is located near where the car was parked when it exploded, but none of its employees were injured.

ARC officials said no damage occurred to the eggs, embryos and reproductive materials at the fertility clinic.

“We are heavily conducting a complete safety inspection and have confirmed that our operations and sensitive medical areas were not impacted by the blast,” ARC officials said in a Facebook post.

The fertility clinic will be open and fully operational on Monday morning with staff available to address any concerns its clients might have.

California Governor Gavin Newsom has been briefed on the explosion, his press office said in a social media post.

The state is working with the FBI and local police to support the response to the car explosion.

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Court allows Trump to stop collective bargaining for thousands of federal workers

May 17 (UPI) — A federal appeals court reversed a lower court decision, allowing President Donald Trump to move ahead with a directive to end collective bargaining rights for thousands of federal workers.

“The Government is likely to prevail in its appeal of the district court’s preliminary injunction. To obtain a preliminary injunction, a plaintiff must demonstrate that it will suffer irreparable harm while the case is pending. The National Treasury Employees Union failed to establish irreparable harm,” the U.S. Court of Appeals For The District of Columbia wrote in its 2-1 ruling this week.

Trump in March issued an executive order directing several federal departments and agencies to cease collective bargaining.

Later that month, the National Treasury Employees Union filed a lawsuit in federal court, arguing the government’s move to direct its 150,000 employees to “cease participating in grievance procedures” was unlawful.

“The Union says it will suffer two irreparable harms. Neither qualifies,” Judges Karen Henderson and Justin Walker wrote in the court’s majority opinion.

Henderson was appointed by former president George H.W. Bush, while Walker was appointed by Trump during his first term.

The court rejected the National Treasury Employees Union’s argument that it would lose bargaining power “and suffer reputational harm that will deter present and future membership,” arguing the government put off any decertification until after all litigation is settled.

“The Union claims that a stay will ‘nullify the collective-bargaining rights of over one-hundred thousand NTEU-represented federal workers.’ But that ignores the Government’s self-imposed restrictions, so it misses the mark,” the court wrote.

“Second, the Union says it will suffer an irreparable financial injury from the loss of automatically withheld union dues. But such ‘financial injuries are rarely irreparable because they are presumptively remediable through monetary damages,'” the court wrote, pointing to the union’s ability to recover any potentially lost dues in future Federal Labor Relations Authority proceedings.

Trump’s executive order applies to more than 12 agencies, exempting them from any requirements to engage in collective bargaining with employees and unions.

The Environmental Protection Agency, U.S. Departments of State, Defense, Homeland Security, Treasury, Veterans Affairs and Health and Human Services are all covered by the order.

“How can the Government argue that the district court injunction will cause irreparable injury when the Government itself voluntarily imposed that same constraint?” Judge Michelle Childs, who was appointed by former president Joe Biden, wrote in the dissenting opinion.

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Maryland’s Gov. Moore vetoes proposed reparations commission

May 17 (UPI) — Maryland Governor Wes Moore vetoed a measure that would have created a commission to study reparations in the former slave state.

Moore vetoed the bill on Friday but said he will propose other methods to address the effects of slavery, Jim Crow laws and other forms of discrimination against blacks in Maryland.

“Together, we must take urgent action to address the barriers that have walled off black families in Maryland from work, wages and wealth for generations,” Moore said Friday in a letter to state lawmakers.

Moore said he will make an announcement regarding the wealth gap in Maryland during the Juneteenth holiday.

The bill was among several that Moore vetoed about 10 days before the deadline to act on them.

The proposed commission would have explored options for addressing the state’s past and subsequent laws deemed discriminatory toward blacks from 1865 to 1965.

The options would have included a formal apology, cash payments or enacting laws that would make amends for past wrongs.

“You can’t have unity without justice, and you can’t have justice without truth-telling, and you can’t have truth-telling without courage,” Delegate Gabriel Acevero, D-Montgomery County, said upon the measure’s introduction in April.

The measure would have created a 23-member commission tasked with studying the effects of slavery and how to make amends with the descendants of former slaves.

Potential state policy changes might have included help with social services and down payments, debt forgiveness, child care coverage and property tax rebates.

A Maryland lawmaker who opposed the proposed reparations commission said it would create a race-based reparations tax.

“It is disgraceful that we are going to set up a reparation tax that will tax one race and give to another race, all in the name of equity,” Delegate Matthew Morgan, R-Calvert and St. Mary’s counties, said upon the bill’s passage in April.

He called “equity” a “Marxist term.”

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‘Eat the tariffs,’ Trump tells Walmart and China

May 17 (UPI) — A recent Walmart earnings report citing tariffs aa a potential reason for raising prices promoted President Donald Trump to tell the world’s largest retailer to “eat the tariffs.”

“Walmart should stop trying to blame tariffs as the reason for rising prices throughout the chain,” Trump said Saturday morning in a Truth Social post.

“Walmart made billions of dollars last year,” Trump said, adding that its earnings were “far more than expected.”

“Between Walmart and China, they should, as is said, ‘eat the tariffs,’ and not charge valued customers anything,” he said.

The president said he will be “watching, and so will your customers!!!”

Narrow retail margins that are less than those of other business sectors might make it impossible for Walmart to simply eat the cost of tariffs.

“We have always worked to keep our prices as low as possible, and we won’t stop,” Walmart said in a statement to CNBC. “We’ll keep prices as low as we can for as long as we can given the reality of small retail margins.”

Trump made his social media comment two days after Walmart President and Chief Executive Officer Doug McMillon told investors Trump’s tariff policies might require the retailer to raise prices on affected goods.

“We will do our best to keep our prices as low as possible, but given the magnitude of tariffs, even at the reduced levels announced this week, we aren’t able to absorb all the pressure,” Doug McMillon, Walmart president and chief executive officer, said during an earnings call on Thursday.

Walmart’s latest guidance and forward-looking statements affirm tariffs are among factors that could significantly impact its earnings throughout the rest of the year and possibly beyond.

“The company’s results may be materially affected by many factors, such as fluctuations in foreign currency exchange rates, changes in global economic and geopolitical conditions, tariff and trade policies, customer demand and spending, inflation, interest rates, world events and various other factors,” Walmart’s earnings report says.

Rapidly changing costs are making it difficult for the retailer gauge the near-future of Walmart Chief Financial Officer John Rainey told CNBC on Thursday.

“We have not seen price increases at this magnitude in the speed in which they’re coming at us before,” Rainey said. “It makes for a challenging environment.”

The electronics and toys that Walmart sells mostly come from China, which so far is subject to a 30% tariff.

The retailer also sells goods from Central and South America, such as bananas, coffee and avocados, which also are subject to at least a 10% tariff.

Rainey told CNBC the retailer wants to keep its prices below its competitors’ prices for similar goods, which would require absorbing cost increases due to tariffs.

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Moody’s becomes final credit agency to downgrade U.S. debt rating

May 17 (UPI) — Moody’s Ratings downgraded U.S. debt, becoming the last of the three major credit rating agencies to move in that direction.

The New York-based agency downgraded government long-term issuer and senior unsecured ratings to Aa1 from Aaa this week, while also changing its outlook to negative from a previous rating of stable, Moody’s said in a media release.

“This one-notch downgrade on our 21-notch rating scale reflects the increase over more than a decade in government debt and interest payment ratios to levels that are significantly higher than similarly rated sovereigns,” Moody’s said in the company’s statement.

“Successive U.S. administrations and Congress have failed to agree on measures to reverse the trend of large annual fiscal deficits and growing interest costs. We do not believe that material multi-year reductions in mandatory spending and deficits will result from current fiscal proposals under consideration.”

Standard & Poor’s in 2011 became the first of the three nationally recognized statistical rating organizations to lower its U.S. debt rating. It later accused the Justice Department of “retaliation” for filing a $5-billion lawsuit against the credit rating agency.

Fitch Ratings followed in 2021, dropping its American long-term foreign-currency issuer default rating from top-ranked AAA to AA+ amid a political battle over the U.S. debt ceiling. That move elicited then-Treasury Secretary Janet Yellen to blast the move at the time, calling it “unwarranted.”

Moody’s in 2023 signaled it could move in the same direction, putting U.S. banks on a negative watch list and warning of a ‘mild’ recession, and later that year lowering its outlook of U.S. debt.

The agency in November then warned of a potential downgrade.

“Over more than a decade, U.S. federal debt has risen sharply due to continuous fiscal deficits. During that time, federal spending has increased while tax cuts have reduced government revenues. As deficits and debt have grown, and interest rates have risen, interest payments on government debt have increased markedly,” Moody’s said in its statement this week.

“If the 2017 Tax Cuts and Jobs Act is extended, which is our base case, it will add around $4 trillion to the federal fiscal primary deficit over the next decade. While we recognize the U.S.’ significant economic and financial strengths, we believe these no longer fully counterbalance the decline in fiscal metrics.”

The White House attempted to shift the blame to former President Joe Biden‘s administration.

“The Trump administration and Republicans are focused on fixing Biden’s mess by slashing the waste, fraud, and abuse in government and passing The One, Big, Beautiful Bill to get our house back in order,” White House spokesperson Kush Desai told reporters Friday.

“If Moody’s had any credibility, they would not have stayed silent as the fiscal disaster of the past four years unfolded.”

Moody’s said it does not expect further downgrades in the near future.

“The U.S. economy is unique among the sovereigns we rate. It combines very large scale, high average incomes, strong growth potential and a track-record of innovation that supports productivity and GDP growth. While GDP growth is likely to slow in the short term as the economy adjusts to higher tariffs, we do not expect that the US’ long-term growth will be significantly affected,” the agency said in its statement.

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Trump executive order reduces VOA staff by almost 600

May 16 (UPI) — U.S. President Donald Trump has directed the firing of almost 600 employees with the publicly-funded Voice of America, representing about a third of the broadcaster’s staff.

“Today, in compliance with President Trump’s Executive Order titled, Continuing the Reduction of the Federal Bureaucracy, dated March 14, 2025, the US Agency for Global Media initiated measures to eliminate the non-statutory components and functions to the maximum extent consistent with applicable law,” U.S. Agency for Global Media Senior Adviser Kari Lake said on the agency’s website late Thursday.

“This action will impact the agency’s workforce at USAGM, Voice of America, Office of Cuba Broadcasting, and all Grantees. Most USAGM staff affected by this action will be placed on paid-administrative leave beginning Saturday, March 15, 2025, and remain on leave until further notice.”

“Buckle up. There’s more to come,” Lake said in an email to the Washington Post.

The USAGM is the agency responsible for VOA, which provides non-partisan news content in countries across the world, including China, Iran, Russia and others with limited freedom of the press.

The bulk of Voice of America’s approximately 1,350 full-time employees were not affected by the latest executive order, which targets mostly contractors.

Lake confirmed 584 positions were affected.

VOA director Michael Abramowitz told staff he is “heartbroken,” The Post reported, citing an internal memo.

“Some of VOA’s most talented journalists have been [personal services contractors] – many of whom have escaped tyranny in their home countries to tell America’s story of freedom and democracy,” Abramowitz wrote in the memo.

Trump’s executive order aims to continue “the reduction in the elements of the Federal bureaucracy that the President has determined are unnecessary.”

The president has previously called the agency “anti-American” and accused it of broadcasting “propaganda.”

The news comes despite a federal judge in April ordering the Trump administration to restore funding and staffing to Voice of America and its affiliated news services. At the time, U.S. District Judge Royce Lamberth deemed the administration’s cuts to be unconstitutional.

Trump in mid-March signed an executive order to reduce the scope of the federal government, which targeted the USGM and VOA.

Earlier this month, the Justice Department announced a “phased return” of VOA staff following court rulings.

Lake in her statement said the agency would continue its international broadcast of U.S. news, but vowed once again to cut excessive spending.

“While at USAGM, I vow to fully implement President Trump’s executive orders in his mission to reduce the size and scope of the federal government,” Lake said in the statement, adding the reductions are within what is “statutorily required by law.”

“The US Agency for Global media will continue to deliver on all statutory programs that fall under the agency’s purview and shed everything that is not statutorily required. I fully support the President’s executive order. Waste, fraud, and abuse run rampant in this agency and American taxpayers shouldn’t have to fund it,” Lake wrote.

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Judge to consider if ‘privilege’ gives government right to hide Kilmar Abrego Garcia info

Kilmar Abrego Garcia, a Salvadoran immigrant who was living in Maryland but deported to El Salvador by the Trump administration in San Salvador, El Salvador in April. Photo courtesy El Salvador President Nayib Bukele | License Photo

May 16 (UPI) — A federal judge will hear arguments Friday from the Trump administration to determine if the government has the legal privilege to not share details about its actions taken toward the return of Kilmar Abrego Garcia.

Abrego Garcia was deported in March to the supermax Terrorism Confinement Center prison, or CECOT, in El Salvador because he was an accused member of the MS-13 gang.

The U.S. Supreme Court ordered the Trump administration in April to return Abrego Garcia, who it said was illegally removed from the United States.

Abrego Garcia’s lawyers continue to try to bring him back but allege the federal government has purposefully delayed his return. The Trump administration has since invoked “state secrets privilege,” which allows an executive department to withhold information or evidence in a court case because the information or evidence could jeopardize national security.

The administration’s use of the privilege has presiding U.S. District Judge Paula Xinis to ask lawyers from both sides of the case to file added legal papers about the administration’s use of the privilege.

Abrego Garcia’s attorneys filed papers Monday that purport the government has yet to produce any evidence that it has done anything to facilitate the man’s release from imprisonment in El Salvador.

Abrego Garcia was born in El Salvador but entered the U.S. illegally in 2011 and had been living in Maryland. He was granted a withholding of removal legal status in 2019 that protected him from deportation due to the risk he would face upon a return to El Salvador from local gangs.

He was one of hundreds of migrants sent by the Trump administration in March to CECOT, and despite the government’s acknowledgement that he was incorrectly deported, he has been purported to be a member of the gang MS-13 by immigration officials.

Abrego Garcia’s legal team has argued that he was not only never part of MS-13, but was never charged or convicted of any crimes in the United States.

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Republican hard-liners defy Trump, Johnson as megabill fails to advance

May 16 (UPI) — President Donald Trump‘s legislative agenda megabill failed to advance after a band of far-right Republicans objected to it during a meeting of the House Budget Committee on Friday.

House Freedom Caucus members — Reps. Andrew Clyde, Josh Brecheen, Ralph Norman and Chip Roy — were joined by Rep. Lloyd Smucker in voting against letting the bill out of committee.

“We are writing checks we cannot cash, and our children are going to pay the price. I am a no on this bill unless serious reforms are made today, tomorrow, Sunday,” Roy said in the committee meeting. “Something needs to change, or you’re not going to get my support.”

Roy said on social media that the critics of the bill were “making progress” in negotiating it, but the vote was called “and the problems were not resolved.”

Norman similarly aired his issues with the bill on Friday on social media. “Why rush the process when we should be working overtime to get it right?” he said.

Clyde affirmed on social media that he “fully” supports Trump’s agenda but said the bill did not go far enough in addressing alleged waste, fraud and abuse in Medicaid, among other grievances.

Committee chair Rep. Jodey Arrington, R-Texas, adjourned the meeting after the vote was read and said they would not meet again until after the weekend.

Rep. Glenn Grothman, R-Wis., predicted in comments to NBC News that the bill would eventually pass after negotiations. “It has to pass,” he said.

Smucker, who initially voted for the bill before changing his vote, also said he hopes the bill can pass the committee by Monday.

Hours before the vote, Trump hit out at his critics on his Truth Social platform, saying that the “grandstanders” must unite behind his agenda.

“Not only does it cut taxes for all Americans, but it will kick millions of illegal aliens off of Medicaid to protect it for those who are the ones in real need,” Trump said.

“The country will suffer greatly without this Legislation, with their taxes going up 65%. It will be blamed on the Democrats, but that doesn’t help our voters. We don’t need ‘grandstanders’ in the Republican Party.”

House Speaker Mike Johnson has plans to put the legislation on the floor for a vote before Memorial Day.

Roy said Thursday in a post to X that “the House proposal fails to meet the moment,” and that “it does not meaningfully change spending,” and then added that he feels “many of the decent provisions and cuts, don’t begin until 2029 and beyond. That is swamp accounting to dodge real savings.”

Currently, the bill’s work requirements for Medicaid recipients without disabilities and children would not launch until 2029.

Aside from Roy and Norman, a contingent of GOP members from New York have made it clear they won’t vote for the bill unless it addresses state and local taxes, or SALT.

The bill as is raises the current $10,000 cap on SALT that can be written off on federal tax returns to $30,000, but the Empire State Republicans want it to be even higher.

“My Republican colleagues need to remember that maintaining the majority means they have to work together with swing seats like mine, where SALT is a priority. It’s time to negotiate; they need to pass the SALT, or I’m voting no,” Rep. Mike Lawler, R- N.Y. announced Wednesday on social media.

Fellow GOP and New York Congressman Nick LaLota stated on X Thursday that “$250K might be rich in Missouri,” but “not on Long Island,” and that “A $30K SALT cap doesn’t cut it. Before 2017, SALT was unlimited. We proposed $62K/$124K caps to fully protect 98% of my district.”

“I want to say yes to the One Big Beautiful Bill, but not without a real SALT fix,” LaLota said.

President Donald Trump responded to the impending showdown Friday via Truth Social, where he insisted “Republicans must unite behind, ‘The One, Big Beautiful Bill,'”

“We don’t need ‘grandstanders in the Republican Party. Stop talking and get it done!” Trump wrote.

The bill if passed would both extend the life of tax cuts set during Trump’s first term and enact up to $1.5 trillion in new tax breaks, with an increase of federal deficit by $1.5 trillion as Trump seeks to spend as much as $175 billion on border security and immigration enforcement, as well as an additional $150 billion for military spending.

The legislation would also increase fossil fuel production and the mining of public lands. To offset the spending, there will be $1.5 trillion in cuts to spending of safety-net programs.

“We have a duty to know the true cost of this legislation before advancing it,” Brecheen said. “If we are to operate in truth, we must have true numbers, even if that means taking some more time to obtain that truth.”

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Supreme Court blocks Trump from using Alien Enemies Act for deportations

May 16 (UPI) — The U.S. Supreme Court on Friday blocked the administration of President Donald Trump from using the rare wartime Alien Enemies Act to deport Venezuelan detainees accused of being members of violent gangs.

The Supreme Court, in its decision, also rebuked judges from a U.S. District Court in North Texas for waiting too long to act on urgent requests related to the impending deportations.

The decision, which sent the case for deliberation back to the Fifth Circuit court, effectively blocks any removals under the Alien Enemies Act until the case can be properly reviewed.

The case is rooted in an April 17 request from two Venezuelan detainees for a temporary restraining order to stop their removal from the United States, which the district court denied that evening.

Later that night, the two detainees were given notice of their imminent removal, leading their lawyers to file a second, emergency request for a temporary restraining order to halt their deportation just after midnight.

“The named applicants, along with putative class members, are entitled to constitutionally adequate notice prior to any removal, in order to pursue appropriate relief,” the Supreme Court wrote in its latest ruling.

The lawyers asked the court to rule on the second request or hold a status conference by 1:30 p.m. The district court failed to rule on the request or hold a status conference that day, with their inaction becoming central to the Supreme Court’s rebuke.

“A district court’s inaction in the face of extreme urgency and a high risk of ‘serious, perhaps irreparable,’ consequences may have the effect of refusing an injunction,” the Supreme Court ruled.

By 3 p.m. on April 18, the lawyers for the detainees appealed to the Fifth Circuit, claiming that the district court’s inaction amounted to a constructive denial — which is when a court does not officially decline a request but acts, or fails to act, in a way that is effectively a denial.

The Supreme Court previously ruled in this case, ordering an emergency injunction that evening to stop the deportations before midnight. That ruling was a procedural hold, not a final ruling, and did not weigh in on the legality of the deportations.

In the days following the emergency injunction, the Fifth Circuit dismissed the appeal, reasoning that the detainees had not given the district court enough time to respond before escalating the case.

This prompted the process for the case to return before the Supreme Court as the detainees asked the high court to treat their emergency application as a formal petition for the court to hear the case, review the lower court’s rulings and to settle the constitutional questions raised by their deportations.

The Supreme Court has vacated the Fifth Circuit court’s dismissal and sent it back to the lower court for a proper legal review, preventing the government from further deportations until the case can be properly decided.

The high court clarified that, as on April 19, its ruling does not address the underlying merits of each side regarding removals under the Alien Enemies Act.

“We recognize the significance of the Government’s national security interests as well as the necessity that such interests be pursued in a manner consistent with the Constitution,” the Supreme Court wrote. “In light of the foregoing, lower courts should address AEA cases expeditiously.”

Justice Samuel Alito dissented, joined by Clarence Thomas, arguing that the Supreme Court never had the legal authority to step in because there was no valid appeal since the district court never actually denied the temporary restraining order request.

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Charter, Cox Communications merger valued at $34.5B

May 16 (UPI) — Charter Communications, one of the largest telecommunications companies in the United States, announced a merger Friday with privately held Cox Communications in a multi-billion-dollar deal.

Once the merger is completed, the new entity will retain the name of Atlanta-based Cox, a subsidiary of parent company Cox Enterprises, a private firm founded in 1898 that also has dealings in the automotive industry. Cox acquired its first cable franchise in 1962.

The deal gives Cox Communications a value of approximately $34.5 billion.

Charter Communications’ stock climbed sharply on the Nasdaq Composite at market open Friday before retreating somewhat. The company’s shares were up $7.03 or 1.68% at 10:42 a.m. EDT.

Under the terms of the deal, Connecticut-based Charter is acquiring all of Cox’s commercial fiber and managed IT and cloud businesses. Cox will also get $4 billion worth of cash and approximately $17.9 billion worth of combined shares, giving the parent company an approximately 23% ownership stake in the new venture.

The new company will remain headquartered in Stamford, Conn., and also assume an existing $12 billion worth of Cox Communications’ debt.

Prior to the deal, Charter was the largest cable operator in the United States, reaching over 32 million subscribers in 41 states. It was also the fifth-largest provider of residential phone lines.

Charter’s Spectrum brand will survive the merger and will “become the consumer-facing brand within the communities Cox serves.”

In 2017, Charter announced a partnership with Comcast Communications to share information about wireless services, a year after its $78.7 billion purchase of Time Warner Cable.

“Cox and Charter have been innovators in connectivity and entertainment services — with decades of work and hundreds of billions of dollars invested to build, upgrade, and expand our complementary regional networks to provide high-quality internet, video, voice and mobile services,” Charter President and CEO Chris Winfrey said in a jointly-issued statement.

“This combination will augment our ability to innovate and provide high-quality, competitively priced products, delivered with outstanding customer service, to millions of homes and businesses.

“We will continue to deliver high-value products that save American families money, and we’ll onshore jobs from overseas to create new, good-paying careers for U.S. employees that come with great benefits, career training and advancement, and retirement and ownership opportunities.”

Winfrey will retain both executive titles upon completion of the deal.

“Our family has always believed that investing for the long-term and staying committed to the best interests of our customers, employees and communities is the best recipe for success,” Cox Enterprises Chairman and CEO Alex Taylor said in the companies’ statement.

“In Charter, we’ve found the right partner at the right time and in the right position to take this commitment to a higher level than ever before, delivering an incredible outcome for our customers, employees, suppliers and the local communities we serve.”

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11 ‘armed and dangerous’ inmates escape from New Orleans jail

May 16 (UPI) — Eleven inmates escaped the Orleans Parish jail Friday morning as the New Orleans facility was locked down. Sheriff Susan Hutson said during a press conference the escapees should be considered armed and dangerous.

Louisiana State Police caught one of the suspects, according to CBS affiliate WWL. The sheriff’s office identified him as Kendell Myles.

The inmates were discovered missing at an 8:30 a.m. head count.

“We are urging the public to stay alert,” Hutson said during a news conference.

One of the escapees, Gary Price, was charged with attempted first-degree murder.

New Orleans Police Superintendent Anne Kirkpatrick said a people believed to be victims of the inmates were evacuated from their homes and “taken to safety.” She urged any witnesses to the crimes of the inmates do the same.

The Orleans Parish Justice Center was fully locked down Friday.

According to WSDU, the inmates dug a hole inside the jail to escape.

Sheriff Hutson said several of the escaped inmates face second-degree murder charges.

The escapees are Antoine Massey, Lenton Vanburen, Leo Tate, Kendell Myles, Derrick Groves, Jermain Donald, Corey Boyd, Gary Price, Robert Moody, Decannon Dennis and Keith Lewis.

An investigation into the escape is underway as a manhunt continues.

This is a developing story. Check back for updates.

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SpaceX launches 26 Starlink satellites from California

SpaceX Friday launched another routine Starlink satellite launch from California, the 20th this year.

Liftoff for Starlink mission 15-5 was 9:43 a.m. EDT from Vandenburg Space Force base, lofting 26 more Starlink satellites into low-Earth orbit. Depicted is a Starlink launch from the Cape Canaveral Space Force Station, Florida on Wednesday. Photo by Joe Marino/UPI | License Photo

May 16 (UPI) — SpaceX Friday launched another routine Starlink satellite launch from California, the 20th this year.

Liftoff for Starlink mission 15-5 was 9:43 a.m. EDT from Vandenburg Space Force base, lofting 26 more Starlink satellites into low-Earth orbit.

The Falcon 9 first stage booster B1093 launched the satellites and then touched down in the Pacific Ocean a little more than eight minutes later on the droneship ‘Of Course I Still Love You.’

The launch was live streamed.


Friday’s launch brought the number of Starlink satellites in orbit to over 1,000.

It was the second flight for booster B1093. It was used 39 days ago in the Starlink 11-11 mission launched from Vandenburg.

SpaceX advised that residents of Santa Barbara, San Luis Obispo, and Ventura counties could possibly hear sonic booms from the launch.

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United States forms AI partnership with UAE

The United States reached a deal with the United Arab Emirates to collaborate on an artificial intelligence technology cluster in Abu Dhabi. Photo by UAE Presidential Court/EPA-EFE

May 16 (UPI) — The United States and the United Arab Emirates have agreed to form an Artificial Intelligence alliance.

The U.S. Department of Commerce announced in a statement that the United States will launch a one-gigawatt AI data center, which in turn will be a part of a five-gigawatt “UAE-U.S. artificial intelligence technology cluster” in the UAE capital city of Abu Dhabi.

The cluster will manage the region’s computation needs that will operate under American-level security standards and be open to the distribution of new AI infrastructure that can serve on an international level.

A group will be formed between the countries within 30 days of its announcement and will “work together to make more efficient the process of inward investments into the United States by UAE Investment Funds,” which also involves UAE investment in American digital infrastructure.

“We are proud to announce the US-UAE AI Acceleration Partnership,” U.S. Secretary of Commerce Howard Lutnick posted to X Thursday. “Together we will build the largest AI data center outside the United States, powered by American companies and high tech manufacturing.”

The deal was made public as President Donald Trump continues a trip through the Gulf region and stopped to visit a new AI campus in Abu Dhabi, where American-produced AI chips will computationally power the facility and become the largest project of its type anywhere outside the United States.

The Biden administration had set an “AI Diffusion Rule” in January, under which the U.S. Commerce Department’s Bureau of Industry and Security added exceptions to the facilitation in regard to the export, reexport of transfer of “advanced computing” to ensure the tech ended up with “users in destinations that do not raise national security or foreign policy concerns.”

The Trump administration rescinded that rule Tuesday, a deregulation that now allows the federal government to make deals with other countries to decide how many American chips they would like to purchase.

“The Trump Administration will pursue a bold, inclusive strategy to American AI technology with trusted foreign countries around the world, while keeping the technology out of the hands of our adversaries,” said Under Secretary of Commerce for Industry and Security Jeffery Kessler in a Tuesday press release.

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On This Day, May 16: NBA names Michael Jordan rookie of the year

1 of 5 | Chicago Bulls guard Michael Jordan jams for two of his game-high 50 points during fourth-quarter action November 21, 1997, to defeat the Los Angeles Clippers 111-102 in two overtimes. On May 16, 1985, the NBA named Jordan rookie of the year after he led all players in points. File Photo by Jim Ruymen/UPI | License Photo

On this date in history:

In 1804, the French Senate declared Napoleon Bonaparte emperor.

In 1871, U.S. Marines landed in Korea in an attempt to open the country to foreign trade.

In 1920, Joan of Arc was canonized as a saint of the Roman Catholic Church.

In 1929, the Academy of Motion Picture Arts and Sciences had its first Academy Awards ceremony. Wings was named Best Picture in the event at the Hollywood Roosevelt Hotel.

In 1932, following the assassination of Premier Inukai Tsuyoshi, fears began to spread that a militarist “super-party” was beginning to take shape in Japan.

File Photo courtesy of the Japan’s National Diet Library

In 1969, the unmanned Soviet spacecraft Venera 5 landed on Venus.

In 1985, the NBA named the Chicago Bulls’ Michael Jordan rookie of the year after he led all players in points.

In 1988, U.S. Surgeon General C. Everett Koop said nicotine was as addictive as heroin or cocaine and called for the licensing of tobacco product vendors.

In 1991, Queen Elizabeth II became the first British monarch to address a joint session of Congress.

UPI File Photo

In 1997, Mobutu Sese Seko — who ruled Zaire for more than 30 years, allegedly looting it of billions of dollars — fled the capital as rebel forces advanced. He died in exile less than four months later.

In 2006, Italian President Giorgio Napolitano appointed Romano Prodi premier amid charges of election fraud from outgoing Prime Minister Silvio Berlusconi.

In 2012, Vermont became the first state to ban hydraulic fracturing (fracking) to extract gas from underground deposits.

In 2013, Britain’s David Beckham announced he would retire from soccer.

In 2014, election results in India gave Narenda Modi and his opposition Bharatiya Janata Party a major victory elevating him to prime minister.

In 2019, the final episode of The Big Bang Theory aired after a 12-season run. The comedy series starred Jim Parsons (Sheldon), Johnny Galecki (Leonard), Kaley Cuoco (Penny), Simon Helberg (Howard), Kunal Nayyar (Raj), Melissa Rauch (Bernadette) and Mayim Bialik (Amy).

File Photo by Jim Ruymen/UPI

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