Archives for category: Funding

The Trump administration has declared war on Harvard University, for what is now–in the Trump era–the usual reasons: allegedly, that Harvard is not doing enough to stop anti-Semitism (a claim that is opposed by many Jews, who don’t want to be the favorite cause of a hateful, bigoted President); that Harvard engages in the policies of diversity, equity, and inclusion, which have been banned by the Trump administration; and that Harvard engages in “racism” by admitting and hiring nonwhite students and professors. The Trump administration has demanded the power to monitor Harvard’s curriculum, admissions, and hiring. Such a federal takeover is obviously unacceptable to Harvard, as it should be unacceptable to any private institution.

To Harvard and other universities, such a government intrusion would compromise academic freedom and their independence. Frankly, the best characterization of this government takeover of independent private institutions is fascist.

The Trump administration is currently withholding $2.2 billion that is dedicated to medical and scientific research. Does it make sense to punish Harvard’s alleged DEI transgressions by stopping funding for projects seeking cures for tuberculosis and ALS?

Secretary of Education Linda McMahon wrote a condescending, insulting letter to Harvard, warning that it would no longer receive any funding until it accepted Trump’s demands. She posted it on Twitter.

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She accused Harvard of “disastrous mismanagement,” snd she warned, “This letter is to inform you that Harvard should no longer seek grants from the federal government, since none will be provided.” Her biggest grievance appears to be that Harvard continues to practice affirmative action despite the Supreme Court banning it. The Trump administration considers any effort to admit or hire people of color to be racism. So the very presence of Black students and professors is evidence that Harvard engages in “ugly racism.”

In her letter, Secretary McMahon rants about Harvard’s abandonment of “merit” and of the excellence for which it was once known.

This stance is ironic, coming from a member of the most unqualified, incompetent Cabinet in modern American history. Was McMahon the best qualified person to be Secretary of Education? Did her experience in the world of wrestling entertainment qualify her to lecture Harvard about academic excellence? Was there no Republican State Commissioner of Education or university president available?

Was Robert F. Kennedy Jr. the best person to run the department of Health and Human Services? Did Pete Hegseth become Secretary of Defense because of his merit?

Various Twitter accounts have posted a copy of her letter with her grammatical errors marked in red pencil. They claim this was Harvard’s response, but it was not.

Harvard responded with a dignified letter to McMahon that restated their intention not to be cowed by her threats, rudeness, and bluster.

The New York Times reported,

In a statement on Monday night, a Harvard spokesperson said the letter showed the administration “doubling down on demands that would impose unprecedented and improper control over Harvard University and would have chilling implications for higher education.”

The statement suggested it would be illegal to withhold funds in the manner Ms. McMahon described.

“Harvard will continue to comply with the law, promote and encourage respect for viewpoint diversity, and combat antisemitism in our community,” the statement said. “Harvard will also continue to defend against illegal government overreach aimed at stifling research and innovation that make Americans safer and more secure.”

I’m betting on Harvard. They are fighting for academic freedom and for freedom from government control of a private institution. They will have the best legal talent. They will be represented by lawyers with sterling conservative credentials.

Harvard will be here long after the Trump administration is a memory, a very bad memory, like the McCarthy era.

New York State law requires private and religious schools to offer an education that is substantially equivalent to what is offered at secular public schools. Some Orthodox Jewish schools refuse to comply. Repeated inspections have found that the recalcitrant Yeshivas do not teach English and do not teach math and science in English.

Dr. Betty Rosa, an experienced educator and New York State Commissioner of Education, has insisted that Yeshivas comply with the law. She fears that their students are graduating from high school without the language skills required for higher education and the workplace.

The Hasidim are a tight-knit group that often votes as a bloc to enhance their political power. They vote for whoever promises to support their interests. Both parties compete for their endorsement.

Eliza Shapiro and Benjamin Oreskes reported the story in the New York Times:

New York lawmakers are considering a measure that would dramatically weaken their oversight over religious schools, potentially a major victory for the state’s Hasidic Jewish community.

The proposal, which could become part of a state budget deal, has raised profound concern among education experts, including the state education commissioner, Betty Rosa, who said in an interview that such changes amount to a “travesty” for children who attend religious schools that do not offer a basic secular education.

“We would be truly compromising the future of these young people,” by weakening the law, Ms. Rosa said. “As the architect of education in this system, how could I possibly support that decision,” she added.

Gov. Kathy Hochul on Monday announced a $254 billion budget agreement but acknowledged many of the particulars are still being hashed out.

Behind the scenes, a major sticking point appears to be whether the governor and the Legislature will agree to the changes on private school oversight, according to several people with direct knowledge of the negotiations, which may include a delay in any potential consequences for private schools that receive enormous sums of taxpayer dollars but sometimes flout state education law by not offering basic education in English or math.

The state is also considering lowering the standards that a school would have to meet in order to demonstrate that it is following the law.

Though the potential changes in state education law would technically apply to all private schools, they are chiefly relevant to Hasidic schools, which largely conduct religious lessons in Yiddish and Hebrew in their all-boys schools, known as yeshivas.

The potential deal is the result of years of lobbying by Hasidic leaders and their political representatives…

The Hasidic community has long seen government oversight of their schools as an existential threat, and it has emerged as their top political issue in recent years.

It has taken on fresh urgency in recent months, as the state education department, led by Ms. Rosa, has moved for the first time to enforce the law, after years of deliberation and delay….

There is little dispute, even among Hasidic leaders, that many yeshivas across the lower Hudson Valley and parts of Brooklyn are failing to provide an adequate secular education. Some religious leaders have boasted about their refusal to comply with the law and have barred families from having English books in their homes.

Mayor Eric Adams’s administration, which has been closely aligned with the Hasidic community, found in 2023 that 18 Brooklyn yeshivas were not complying with state law, a finding that was backed up by state education officials.

A 2022 New York Times investigation found that scores of all-boys yeshivas collected about $1 billion in government funding over a four-year period but failed to provide a basic education, and that teachers in some of the schools used corporal punishment.

It is clear why Hasidic leaders, who are deeply skeptical of any government oversight, would want to weaken and delay consequences for the schools they help run.

It is less obvious why elected officials would concede to those demands during this particular budget season. There is widespread speculation in Albany that Ms. Hochul, facing what may be a tough re-election fight next year, is hoping to curry favor from Hasidic officials, who could improve her chances with an endorsement….

Hasidic voters are increasingly conservative and tend to favor Republicans in general election contests.

New York’s state education law related to private schools, which is known as the substantial equivalency law, has been on the books for more than a century.

It was an obscure, uncontroversial rule up until a few years ago, when graduates of Hasidic yeshivas who said they were denied a basic education filed a complaint with the state, claiming that their education left them unprepared to navigate the secular world and find decent jobs.

 

Last February, Trump met with the nation’s governors. He gave them a lecture about his agenda. When it came to his determination to ban transgender athletes, he called out Governor Janet Mills of Maine. He warned her that had “better comply” with his executive order. They exchanged words. She was unbowed. She said to Trump: “See you in court.”

Trump told the Agriculture Department to hold back $3 million in food from Maine schools.

Maine sued to get the money that was due.

They settled. Maine got its $3 million. Governor Mills changed nothing.

The New York Times reported:

The state’s attorney general, Aaron M. Frey, said his office had withdrawn a lawsuit it filed in objection to the funding freeze, which had held up around $3 million, he estimated, and was initiated by the Agriculture Department last month. The federal dollars, Mr. Frey said in an interview, pay for food preparation in schools and child care centers, and also assist in feeding disabled adults in congregate settings…

“The food doesn’t just buy itself, deliver itself, cook itself,” Mr. Frey said Friday, adding that the Trump administration had tried to “bully” Maine. “The message here is if you don’t follow the law and you try to target Maine without relying on any shred of law to support it, we’re going to have to take you to court.”

The White House deferred comment to the Agriculture Department. 

Ms. Mills said in a statement that the Trump administration had made an “unlawful attempt to freeze critical funding.” But the agreement, she said, will preserve healthy meals for about 170,000 schoolchildren across Maine.

That’s the thing about bullies. If you stand up to them, they back off. They get their power by intimidation. At bottom, they are cowards. Take Trump. He dodged the draft. Five times. Don’t be afraid of him.

Yesterday was World Press Freedom Day.

Press Freedom is at risk in every authoritarian regime, but also in the U.S. Trump has filed frivolous lawsuits against ABC and other news outlets. ABC paid him $15 million to make peace.

Trump sued CBS for $10 billion for editing a “60 Minutes” interview with Kamala Harris and is now in settlement talks. Editing a pre-taped interview is standard practice. The interview may last for an hour, but only 20 minutes is aired. Since Trump won the election, how was he damaged? It is hard to imagine he would win anything in court.

But Trump’s FCC chairman, Brendan Carr, has the power to destroy CBS. And the owner of CBS–Shari Redstone– is currently negotiating a lucrative deal that needs FCC approval. What will CBS pay Trump?

Given Trump’s legendary vindictiveness, will he succeed in eviscerating press freedom? Will the media dare criticize him as they have criticized every other president?

See CNN’s Brian Stelter on the state of press freedom today.

Now comes Trump’s puzzling vendetta against the Voice of America. In March, he issued an executive order to shut it down, although Republicans have traditionally supported it. On April 22, a federal district court judge overturned Trump’s executive order and demanded the rehiring of VOA staff. They were told they would be back at work in days. But yesterday, a three judge appeals court stayed the lower court’s ruling and VOA’s future is again in doubt. Two of the three appeals court judges were appointed by Trump.

The Voice of America has a unique responsibility. It brings objective, factual, unbiased news to people around the globe. For millions of people, the Voice of America is their only alternative to either government propaganda or no news at all.

Why does Donald Trump want to kill the Voice of America.

He has never explained.

He has called VOA “radical,” “leftwing,” and “woke,” but there is no factual basis for those attacks. They are talking points, not facts.

He appointed his devoted friend, Kari Lake, who ran for office in Arizona and lost both times, as the agent of VOA’s demise. She was an on-air commentator, so she knows something about media.

VOA seems to be in a death spiral, like USAID and the Department of Education.

The Washington Post reported on the Appeals Court’s ruling. Kari Lake described the decision as a “huge victory for President Trump.”

Trump has never explained why the Voice of America should be silenced.

Apparently no one at the VOA understands. I found this interview by Nick Schifrin of PBS (also on Trump’s chopping block), Lisa Curtis, and Michael Abramowitz, Director of VOA:

  • Nick Schifrin: Lisa Curtis is the chair of the board of Radio Free Europe/Radio Liberty and a former senior director on President Trump’s first National Security Council staff.
  • Lisa Curtis: While it’s understandable that President Trump wants to cut down on government waste and fraud, I think this is the wrong organization to be attacking. Russia, Iran, China, these countries are spending billions in their own propaganda, their own anti-American propaganda. So I think it’s critical that the U.S. government is supporting organizations like RFE/RL that are pushing back against that disinformation, misinformation.
  • Nick Schifrin: And she says RFE/RL’s content reaches more than 10 percent of Iranians, many of whom have protested the regime.
  • Lisa Curtis:So I think it really is part of U.S. soft power, but they actually call it the hard edge of soft power because it is so effective in getting out the truth about America, about what’s happening in their local environments. And this is absolutely critical.
  • Nick Schifrin:Curtis said she considers the freeze and their funding illegal because the money is congressionally appropriated and RFE/RL’s mission is congressionally mandated. And they will sue the Trump administration to get it restored.To discuss this, I turn to Michael Abramowitz, who since last year has been the president of Voice of America and before that was the president of Freedom House.Michael Abramowitz, thanks very much. Welcome back to the “News Hour.”As you heard, President Trump in his statement on Friday night referred to VOA as a radical propaganda with a liberal bias. Is it?Michael Abramowitz, Director, Voice of America: I don’t think so.I do think that people at many different news organizations have been accused of bias on both right and left, like many different news organizations. VOA is not perfect, but we’re unusual among news organizations because we are one of the few news organizations that by law has to be fair and balanced.Every year, we look at each of our language services, review it for fairness, for balance. I have been a journalist in this field for a long time, and I think the journalists at VOA stand up very well against people from CNN, FOX, New York Times, et cetera, in terms of the commitment to balance.When we do talk shows, for instance, broadcasting into Iran, we will have Republicans, we will have Democrats. We are presenting the full spectrum of American political opinion, which is required by our charter.
  • Nick Schifrin:You have heard from other administration officials or allies of the president. Ric Grenell, who is a special envoy, called it — quote — “a relic of the past. We don’t need government-paid media outlets.”
  • Elon Musk says:“Shut them down. Nobody listens to them anymore.”Fundamentally, why do you believe taxpayers should pay for VOA journalism?
  • Michael Abramowitz:You know, the media is changing, the world is changing, and the Cold War doesn’t exist anymore.But what is happening around the world is that there is a huge, really, battle over information. The world is awash in propaganda and lies, and our adversaries like Russia and China, Iran are really spreading narratives that directly undermine accurate views about America.And we have to fight back. And VOA in particular has been an incredible asset for fighting back by providing objective news and information in the languages, in 48 languages that people in the local markets we serve. No other news organization does that.
  • Nick Schifrin:Let me ask a little bit about the status of the agency. You and every employee were put on leave over the weekend. Today, all contractors have been terminated. Do you have any notion of what the goal is from the administration? Is it to reform VOA, or is it simply to destroy it?
  • Michael Abramowitz:Candidly, I don’t know.Ms. Kari Lake, who is supposed to be my successor at some point she’s given some interviews, and I think she clearly recognizes in those interviews that VOA serves an important purpose. I think there are a lot of Republicans, in particular, especially on the Hill, who recognize the value of Voice of America, who recognize that, if we shut down, for instance, our program on Iran, which is really an incredible newsroom — we have 100 journalists, most of whom speak Farsi, has a huge audience inside Iran.When the president of Iran, when his helicopter went down over the summer, there was a huge spike in traffic on the VOA Web site because the people of Iran knew that they could not get accurate information about what was going on, so they came to VOA to get it. That’s the kind of thing that we can do.
  • Nick Schifrin:I want to point out, we heard from Lisa Curtis, the chair of the board of Radio Free Europe/Radio Liberty.Voice of America and the Cuba Broadcasting, previously known as Radio Marti — we have got a graphic to show this — those are fully federal networks.(Crosstalk)
  • Nick Schifrin:What RFE/RL is talking about, they are a grantee. They get a grant from the U.S. government. RFE/RL will sue. Does VOA have any recourse today?
  • Michael Abramowitz:Well, I think we are — I mean, there’s a lot of discussion about some lawsuits that different parties are making. I know that the employees may be thinking about that.I think — I’m not sure that litigation in the end is going to be the most productive way. Maybe — I mean, you have to see what happens. But I think what would be really great is if Congress and the administration get together, recognize that this is a very important service, recognize that it’s sorely needed in a world in which our adversaries are spending billions of dollars, like Lisa said, and reformulate VOA to be effective for the modern age.
  • Nick Schifrin:And, finally, how — what’s the impact of this decision and the language that we have heard from the Trump administration on the very idea that information, that journalism sponsored by the U.S. government can support freedom and democracy?
  • Michael Abramowitz:We have been on the air essentially for 83 years through war, 9/11, government shutdown. VOA has kept — has kept its — has kept the lights on, has not been silent.So we’re silenced for the first time in 83 years. That’s devastating to me personally. It’s devastating to the staff. It’s devastating to all the thousands of people who used to work at VOA. I mean, this is a very special and unique news organization. It deserves to live. It doesn’t mean we can’t reform, but it deserves to survive.

I still don’t understand why Trump wants to close down America’s voice to the world.

I ask myself, who benefits if the Voice of America is stifled.

The obvious culprits: America’s enemies, especially Russia.

During the decades of the Cold War, VOA beamed information to dissenters behind the Iron Curtain. It kept hope alive.

No one would be happier to see VOA shut down than Putin.

Governor Gregg Abbott signed his big voucher bill into law yesterday, repeating promises he has made that are most certainly false. He claimed that vouchers will put Texas on a path to being the number one school system in the nation. Several other states have large voucher programs–e.g., Florida, Arizona, and Ohio–and none of them is the number one rated school system in the nation.

If anything, vouchers and charter schools break up the common school system that states pledge in their constitutions to support. Public schools are one system, regulated by the state, subject to elected local school boards. Charter schools are another, lightly regulated by the state, some for-profit, some as corporate chains, managed by private boards. Voucher schools are a third system, almost entirely deregulated, not required to accept all students, as public schools are. Voucher schools are not required to have certified teachers, as public schools are. Voucher schools are exempt from state testing. Most voucher schools are religious schools, managed by their religious leader. Private and religious schools choose their students.

Vouchers have been a big issue since the early 1990s. The first voucher program was launched in Milwaukee in 1990. The second started in Cleveland in 1996, ostensibly to save poor kids from failing public schools. Neither Cleveland nor Milwaukee is a high-performing district.

What we have learned in the past 30-35 years about vouchers is this:

  1. Most students who use vouchers were already enrolled in nonpublic schools.
  2. The students who transfer from public to private schools are likely to fall behind their peers in public schools. Many return to public schools.
  3. The public does not want their taxes to be spent on religious schools or on the children of affluent families. In nearly two dozen state referenda, voters defeated vouchers every time.
  4. The academic performance of students who leave public schools to attend nonpublic schools is either the same or much worse than students in public schools.
  5. Vouchers drain funding from public schools, where the vast majority of students are enrolled. This, the majority of students will have larger classes and fewer electives to subsidize vouchers.
  6. Vouchers are expensive. Arizona is projecting a cost of $1 billion annually. Florida currently is paying $4 billion annually.

To learn more about the research, read Joshua Cowen’s book The Privateers: How Billionaires Created a Culture War and Sold School Vouchers (Harvard Educatuon Press).

Governor Abbott surely knows these facts, but he determined that vouchers were his highest priority. Certainly they make him the champion of parents who send their children to private and religious school. All will be eligible for a subsidy from the state. And Abbott delivered for the billionaires who funded his voucher campaign.

Edward McKinley of the Houston Chronicle wrote:

Gov. Greg Abbott signed a $1 billion school voucher program into law Saturday, cementing the biggest legislative victory of his decade in office before a huge crowd including families, legislators and GOP donors.

Abbott framed the ceremony as the climax of a multiyear effort by himself and advocates around the state, and touted the state’s new program as the largest to ever launch in the nation. 

“Today is the culmination of a movement that has swept across our state and across our country,” he said, using the speech to call out parents in the crowd who had already pulled their students from “low-performing” public schools to put them into private ones. “It’s time we put our children on a pathway to have the number one-ranked education system in the United States of America.”

He put pen to paper at a wooden desk in front of the Governor’s Mansion, as a gaggle of children stood around him wearing their private school colors and logos. Someone shouted, “Thank you, governor!” before the crowd of nearly 1,400 people erupted in applause. Abbott pumped his fist in the air. 

The ceremony marked a major moment for the third-term Republican, who threw his full political weight and millions of campaign dollars into a push for private school vouchers, overcoming a legislative blockade that had lasted for decades. The bill he signed into law will give Texas students roughly $10,000 a year that they can put toward private school tuition, tutoring, textbooks and other expenses…

Texas Education Agency Commissioner Mike Morath and Pennsylvania billionaire Jeff Yass mingled in the crowd. Yass contributed more than $12 million to Abbott’s campaign last cycle, as the governor sought to unseat anti-voucher Republicans in the 2024 primary election.

Abbott was joined on stage by U.S. Sen. John Cornyn, Lt. Gov. Dan Patrick, House Speaker Dustin Burrows and the House and Senate authors of the bill. Also in attendance were private school leaders, including Joel Enge, director of Kingdom Life Academy. 

After Abbott’s address, Enge told the crowd he founded his Christian school after working in public schools in a low-income area of Tyler and watching children fall behind. His speech had the feel of a sermon.

“Children who have been beaten down by the struggles in the academic system that did not fit the system will now be empowered as they begin to find the right school setting that’s going to support them and to allow them to grow in confidence in who God created them to be,” he yelled, to raucous cheers. “Amen!…”

Hours earlier, Democratic legislators, union leaders and public educators gathered in the parking lot of the AFL-CIO building across the street from the governor’s mansion, where they had a much different message. 

Echoing lines used throughout committee hearings and legislative debates for the past few years, they warned that vouchers would hurt already struggling neighborhood public schools by stripping away their funding. About two dozen people swayed under the direct sun, waving signs that said “public dollars belong in public schools” and “students over billionaires.” 

“Today, big money won and the students of Texas lost,” said state Rep. James Talarico, an Austin Democrat. “Remember this day next time a school closes in your neighborhood. Remember this day next time a beloved teacher quits because they can’t support their family on their salary.”

Several speakers pointed out that while Republicans fast-tracked the voucher bill, they have yet to agree on a package to increase funding to public schools and raise teacher pay.

State Rep. Gina Hinojosa, an Austin Democrat, said she hoped this defeat could sow the seeds of future victories. Abbott and most legislators are up for reelection next year.

“He may have won this battle, but the war is not over,” she said. “There will be a vote on vouchers and he can’t stop it, and it will be in November 2026.”

What’s in the bill

The new law stands to remake education in Texas, granting parents access to more than $10,000 in state funds to pay for private school tuition and expenses, or $2,000 for homeschoolers. The first year of operation will begin in 2027, and in the run-up, the state will choose nonprofits to run the program, develop the application process and pick which families will have access.

All students will be eligible, although families making more than 500% of the federal poverty line, about $160,750 in income for a family of four, cannot take up more than 20% of the funds. The funds will be tied roughly to the amount of money the students would have received in public schools, meaning students with disabilities will receive extra.

School vouchers have become a signature of Abbott’s three terms in office. 

After the COVID-19 pandemic, other Republican-controlled states such as Florida, Arizona, Iowa and Indiana created or expanded their own voucher programs. But school choice advocates repeatedly fell short in Texas thanks to an alliance between Democrats and rural Republicans. Bills passed the Senate but failed to gain traction in the House. 

Then, in May 2022, Abbott announced in a speech at San Antonio’s Southside that he’d be throwing his full weight behind the policy. Even as public schools struggled to keep teachers in the classroom and balance their budgets, the governor told lawmakers he wouldn’t approve extra funds until a voucher bill made it to his desk. When it didn’t happen, even in special sessions, he took to the campaign trail, spending millions to unseat about a dozen key GOP lawmakers who stood in his way.

This session, he enlisted President Donald Trump’s help at the last minute to rally Republican House members, some of whom said they felt forced to back the policy.

Critics warn the state’s voucher program lacks safeguards to ensure it reaches the children it was designed to help and say they expect many of the slots to go to students already in private schools, which can pick and choose who they educate. The majority of private schools in Texas are religiously affiliated, and the average tuition costs upwards of $10,900, according to Private School Review.

Though $1 billion is set aside for the program in the first biennium, the nonpartisan Legislative Budget Board projects it could grow exponentially in the next decade amid huge demand from students currently in private or home schools.

It remains to be seen how many private schools will accept the vouchers, but many advocated their passage, including Catholic, Jewish and Muslim schools.

Although Abbott has said repeatedly that the program won’t pull funds from public schools, because schools are funded based on attendance, the LBB analysis showed that the program would reduce state payments to public schools by more than $1 billion by 2030. 

David Yaffe-Bellany of The New York Times reported on a startling development in Dubai that will enrich the Trump family by hundreds of millions of dollars. Is it a conflict of interest? Of course. Will it matter to the Republican leaders in Congress? No. Has there ever been a President who used his office for financial gain so brazenly? No. Trump is #1.

Gaffe-Bellamy writes:

Sitting in front of a packed auditorium in Dubai, a founder of the Trump family cryptocurrency business made a brief but monumental announcement on Thursday. A fund backed by Abu Dhabi, he said, would be making a $2 billion business deal using the Trump firm’s digital coins.

That transaction would be a major contribution by a foreign government to President Trump’s private venture — one that stands to generate hundreds of millions of dollars for the Trump family. And it is a public and vivid illustration of the ethical conflicts swirling around Mr. Trump’s cryptofirm, which has blurred the boundary between business and government.

Zach Witkoff, a founder of the Trump family crypto firm, World Liberty Financial, revealed that a so-called stable coin developed by the firm, would be used to complete the transaction between the state-backed Emirati investment firm MGX and Binance, the largest crypto exchange in the world.

Virtually every detail of Mr. Witkoff’s announcement, made during a conference panel with Mr. Trump’s second-eldest son, contained a conflict of interest.

MGX’s use of the World Liberty stablecoin, USD1, brings a Trump family company into business with a venture firm backed by a foreign government. The deal creates a formal link between World Liberty and Binance — a company that has been under U.S. government oversight since 2023, when it admitted to violating federal money-laundering laws.

And the splashy announcement served as an advertisement to crypto investors worldwide about the potential for forming a partnership with a company tied to President Trump, who is listed as World Liberty’s chief crypto advocate.

“We thank MGX and Binance for their trust in us,” said Mr. Witkoff, who is the son of the White House envoy to the Middle East, Steve Witkoff. “It’s only the beginning.”

Mr. Witkoff and Eric Trump were speaking on a panel at Token2049, a major crypto conference in the United Arab Emirates, where more than 10,000 digital currency enthusiasts have gathered for a week of networking. It was the latest stop in an international tour by Mr. Witkoff, who visited Pakistan last month with his business partners to meet the prime minister and other government officials. Eric Trump, who runs the family business, has spent the week in Dubai, where he announced plans to back a Trump-branded hotel and tower.

There is more.

This is a gift article so you should be able to read it in full even without a subscription.

Before Trump was elected, Elon Musk was being investigated by multiple federal agencies. After Trump’s election, Musk persuaded Trump to put him in charge of a cost-cutting operation called “Department of Government Efficiency,” which was tasked with cutting the budgets or shuttering multiple federal agencies.

Musk and his team of hackers were ruthless in closing agencies that did not like. They shut down USAID, which provided food and medicine to the world’s neediest families and children.They terminated scientific research on a large number of university campuses and in the NIH, which sponsors critical research into cures for deadly diseases. They defunded large and small.

But there is one kind of project they not defund: anything that pays federal funds to Elon Musk.

More than that, Musk had a very lucky break. His good friend Trump, to whom he gave nearly $300 million for the 2024 election, is unlikely to prosecute his pal Elon.

Lawrence Darmiento of the Los Angeles Times had the story:

Elon Musk and his companies faced at least $2.37 billion in potential federal fines and penalties the day President Trump took office, according to a congressional report released Monday that highlights the possible conflicts of interest posed by the billionaire’s cost-cutting work in government.

The 43-page memo by the minority staff of the Senate’s Permanent Subcommittee on Investigations, led by Sen. Richard Blumenthal (D-Conn.), is the most exhaustive attempt yet to detail Musk’s alleged conflicts as an advisor to Trump and chief promoter of his team called the Department of Government Efficiency, or DOGE.
Based on publicly available documents, media reports and the committee’s own calculations, the memo found that as of Jan. 20, Musk and his companies were “subject to at least 65 actual or potential actions by 11 different federal agencies” and that 40 of those created $2.37 billion in potential liabilities.

“Mr. Musk has taken a chainsaw to the federal government with no apparent regard for the law or for the people who depend on the programs and agencies he so blithely destroys,” the memo stated. “The through line connecting many of Mr. Musk’s decisions appears to be self-enrichment and avoiding what he perceives as obstacles to advancing his interests.”

The memo notes that Musk’s companies have received more than $38 billion in government contracts, loans, subsidies and tax credits going back more than 20 years. And it notes that SpaceX, as of Friday, had $10.1 billion in federal contracts.

“President Trump could not have chosen a person more prone to conflicts of interest,” states the memo, which calls on the president, executive departments and regulatory agencies to “take coordinated action to address Elon Musk’s threat to the integrity of federal governance.”

To no one’s surprise, the white Hohse press office indignantly insisted that Musk had no conflicts of interest.

The committee found that Tesla created most of the potential penalties for Musk — a cumulative $1.89 billion — due to investigations, lawsuits and other issues involving eight agencies.

The largest single liability was a potential $1.19-billion fine due to a reported criminal investigation opened by the Department of Justice into allegedly false or misleading statements made by Musk and the company about its Autopilot and Full-Self Driving Features since as early as 2016.

The Times previously reported the National Highway Traffic Safety Administration is probing the Full-Self Driving technology after reports of four collisions in low-visibility conditions, including one in which a pedestrian was killed.

However, doubts have been raised about the Justice Department’s commitment to any prosecution. The memo notes that in February the department dismissed a lawsuit it filed against SpaceX for allegedly discouraging asylum seekers and refugees from applying for jobs or hiring them because of their citizenship status. It calculated the lawsuit could have exposed SpaceX to $46.1 million in liabilities.

The second single largest liability of $462 million facing Musk also involved Tesla. It arose out of a 2023 lawsuit filed by the Equal Employment Opportunity Commission for the company’s alleged toleration of widespread racial harassment of Black employees at its Fremont, Calif., factory. Tesla has denied the allegations. In January, Trump fired two Democratic commissioners and the agency’s general counsel.

How likely is it that any of these charges will go to trial?

In an investigative report, The New York Times demonstrated that Elon Musk failed to deliver on his claim that he could cut $2 trillion from the federal budget. Not only did he fall short, but his efforts were so reckless that they might cost money instead of saving it.

Having launched his so-called “Department of Government Efficiency” (which is not a department at all and was never authorized by Congress), Musk and his then-partner Vivek Ramaswamy promised to cut $2 trillion. Their goal dropped to $1 trillion, and Vivek left the team to run for Governor in Ohio.

Some of DOGE’s claims turned out be be inflated (one alleged saving of $8 billion turned out to be a saving of only $8 million.

Musk eventually reduced his saving claim to only $150 billion.

Since DOGE began, thousands of federal employees have been fired. Some have been rehired after courts decided their firing was illegal. Some have been fired, rehired, and fired again. Some career employees have taken buyout offers. Tens of thousands of federal employees have been laid off, without regard to their experience. There was no time for DOGE workers to evaluate each person they ousted, nor did DOGE have the competence to judge its victims.

The New York Times concluded that DOGE’s activities may actually save nothing at all. Firing workers is expensive when you do it the wrong way, the DOGE way.

Elizabeth Williamson of The New York Times wrote:

President Trump and Elon Musk promised taxpayers big savings, maybe even a “DOGE dividend” check in their mailboxes, when the Department of Government Efficiency was let loose on the federal government. Now, as he prepares to step back from his presidential assignment to cut bureaucratic fat, Mr. Musk has said without providing details that DOGE is likely to save taxpayers only $150 billion.

That is about 15 percent of the $1 trillion he pledged to save, less than 8 percent of the $2 trillion in savings he had originally promised and a fraction of the nearly $7 trillion the federal government spent in the 2024 fiscal year.

The Partnership for Public Service, a nonprofit organization that studies the federal work force, has used budget figures to produce a rough estimate that firings, re-hirings, lost productivity and paid leave of thousands of workers will cost upward of $135 billion this fiscal year. At the Internal Revenue Service, a DOGE-driven exodus of 22,000 employees would cost about $8.5 billion in revenue in 2026 alone, according to figures from the Budget Lab at Yale University. The total number of departures is expected to be as many as 32,000.

Neither of these estimates includes the cost to taxpayers of defending DOGE’s moves in court. Of about 200 lawsuits and appeals related to Mr. Trump’s agenda, at least 30 implicate the department.

The errors and obfuscations underlying DOGE’s claims of savings are well documented. Less known are the costs Mr. Musk incurred by taking what Mr. Trump called a “hatchet” to government and the resulting firings, agency lockouts and building seizures that mostly wound up in court.

“Not only is Musk vastly overinflating the money he has saved, he is not accounting for the exponentially larger waste that he is creating,” said Max Stier, the chief executive of the Partnership for Public Service. “He’s inflicted these costs on the American people, who will pay them for many years to come.”

Mr. Stier and other experts on the federal work force said it did not have to be this way. Federal law and previous government shutdowns offered Mr. Musk a legal playbook for reducing the federal work force, a goal that most Americans support. But Mr. Musk chose similar lightning-speed, blunt-force methods he used to drastically cut Twitter’s work force after he acquired the company in 2022.

“The law is clear,” said Jeri Buchholz, who over three decades in public service handled hiring and firing at seven federal agencies, including NASA and the Defense Intelligence Agency. “They can do all the things they are currently doing, but they can’t do them the way they’re doing them. They can either start over and do it right, or they can be in court for forever.”

Jill Underly was recently te-elected as State Superintendent of Schools in Wisconsin. She is an active member of the Netwotk for Public Education and attended its last two meetings. She released the following statement after two courts hacked away at Trump’s threat to withhold funds from schools that taught diversity, equity, and inclusion

MADISON, Wis. (WISCONSIN DEPARTMENT OF PUBLIC INSTRUCTION PRESS RELEASE) – State Superintendent Dr. Jill Underly today issued a statement following two federal court rulings that limit the Trump administration’s ability to withhold critical school funding over an unclear certification form and process.

“Our top priority in Wisconsin is our kids and making sure every student has the support they need to succeed. The past few weeks, school leaders have been scrambling to understand what the impact of the U.S. Department of Education’s order could be for their federal funds, forcing them to take their eye off what matters most.

“Today, two separate courts reached a similar conclusion: the USDE’s new certification process is likely unlawful and unconstitutionally vague. That is a welcome development for our schools and communities who, working in partnership with parents and families, are best positioned to make decisions for their communities – not Washington, D.C.

“We are closely reviewing today’s rulings and will continue to stand up for Wisconsin schools, and most importantly, our kids.”

The Trump administration claims that it wants to reduce federal intervention into the nation’s public and private institutions. But it intervenes forcefully in both public and private sectors to punish anyone with different views. It has threatened to withhold federal funding for research from universities unless the targeted universities allow the federal government to supervise its curriculum, its hiring policies, and its admissions policies. And he threatened to stop the funding of any K12 school that continues DEI programs.

The Trump regime has created a nanny state.

From Day 1, Trump made clear that he would ban practices and policies intended to diversity, equity, and inclusion. He threatened to withhold federal funding of schools that ignored his order to eliminate DEI. He has taken complete control of the Kennedy Center, so as to block DEI programming, and he has appointed a woman with no credentials to remove DEI from the Smithsonian museums.

Who knows how the African American Museum will survive Trump’s DEI purge.

ABC News reported that a federal district judge has halted the DEI ban, at least in schools associated with one of the lawsuit’s plaintiffs, the NEA.

ABC News reported:

The Trump administration’s attempt to make federal funding to schools conditional on them eliminating any DEI policies erodes the “foundational principles” that separates the United States from totalitarian regimes, a federal judge said on Thursday.

In an 82-page order, U.S. District Judge Landya McCafferty partially blocked the Department of Education from enforcing a memo issued earlier this year that directed any institution that receives federal funding to end discrimination on the basis of race or face funding cuts.

“Ours is a nation deeply committed to safeguarding academic freedom, which is of transcendent value to all of us and not merely to the teachers concerned,” Judge McCafferty wrote, adding the “right to speak freely and to promote diversity of ideas and programs is…one of the chief distinctions that sets us apart from totalitarian regimes.”

“In this case, the court reviews action by the executive branch that threatens to erode these foundational principles,” she wrote.

The judge stopped short of issuing the nationwide injunction, instead limiting the relief to any entity that employs or contacts with the groups that filed the lawsuit, including the National Education Association and the Center for Black Educator Development.