‘It’s not their money’: Older Americans worried debt default means no Social Security

ABC News

‘It’s not their money’: Older Americans worried debt default means no Social Security

Peter Charalamboust – May 23, 2023

‘It’s not their money’: Older Americans worried debt default means no Social Security

If the United States defaults on its financial obligations, millions of Americans might not be able to pay their bills as well.

With Social Security and other government benefits at risk amid a political stalemate over the government’s debt ceiling, experts and older Americans told ABC News that the consequences of the impasse in Washington could be dire, including for older Americans who need the money to pay for basic needs such as food, housing or health care costs.

A quarter of Americans over age 65 rely on Social Security to provide at least 90% of their family income, according to the Social Security Administration.

PHOTO: President Joe Biden walks to the White House after landing on the South Lawn aboard Marine One, May 21, 2023 in Washington, DC. (Samuel Corum/Getty Images)
PHOTO: President Joe Biden walks to the White House after landing on the South Lawn aboard Marine One, May 21, 2023 in Washington, DC. (Samuel Corum/Getty Images)

Fred Gurner, 86, of New York, told ABC News that he uses his Social Security payment for his $800 rent. But now there is real risk that his payment might not come in time in June — when the Treasury Department says the government might not be able to send him the money he counts on.

“It’s very stressful, gives me a heart attack,” Gurner said about how the issue has become politicized.

How are Social Security payments affected by the debt ceiling?

Since 2001, the United States has spent more money than revenue it has taken in overall.

To cover the difference, the United States Treasury issues debt through securities, according to University of Pennsylvania’s Wharton School of Business professor Olivia Mitchell. Backed by the United States, those securities are happily bought by investors who see it as a safe guarantee they’ll get paid back with interest.

However, the United States and Denmark are the only two countries to limit the amount of debt the government can issue, known as a debt ceiling, Mitchell noted.

MORE: Ahead of meeting with Biden, McCarthy says debt, spending deal needed ‘this week’

Lawmakers can pass new laws that require government spending, but the debt ceiling will remain in place until lawmakers vote to increase it. That has happened 78 separate times in the United States since 1960.

If that debt ceiling does not increase by June 1, Treasury Secretary Janet Yellen has warned House Speaker Kevin McCarthy that the country will not be able to satisfy all of its financial obligations.

Beyond not being able to pay interest and principal on government securities — which economists broadly agree would rattle the stock market and possibly damage the U.S. credit rating — the Treasury would be unable to issue new debt to cover expenses like Social Security, according to Mitchell.

The government projects to spend roughly $100 billion on Social Security in the month of June, according to the Bipartisan Policy Center.

“It’s going to be pretty tight for people for a while, unless Congress and the president can get together on this problem,” Mitchell said.

When would Social Security payments become delayed?

The Social Security Administration plans to send contributions to beneficiaries on four dates next month — June 2, 14, 21, and 28. Those checks would be the first ones at risk of being delayed, according to Max Richtman, President and CEO of the National Committee to Preserve Social Security and Medicare.

“Millions and millions of Social Security beneficiaries are worried about having the income to pay their basic bills,” he noted.

Lynda Fisher, 80, told ABC News that her budget relies on her monthly Social Security check and that a delay would complicate her essential spending, frustrating the 80-year-old who has spent her life contributing to the system.

PHOTO: FILE - House Speaker Kevin McCarthy, Republican of California, speaks with reporters in the US Capitol in Washington, DC, May 17, 2023. (Andrew Caballero-reynolds/AFP via Getty Images, FILE)
PHOTO: FILE – House Speaker Kevin McCarthy, Republican of California, speaks with reporters in the US Capitol in Washington, DC, May 17, 2023. (Andrew Caballero-reynolds/AFP via Getty Images, FILE)

“I paid into Social Security, and I paid into Medicare,” she said. “And now they’re trying to take it away. It’s not their money, it’s my money that I paid into.”

Richtman is now actively encouraging older residents to save money in anticipation of a delayed Social Security payment, fearing negotiations will not yield a compromise in time to avoid default.

On NBC’s “Meet the Press” on Sunday, Yellen indicated that certain bills might be prioritized, including interest payments, Social Security and military contractor payments. However, Richtman expressed doubt that such a prioritization would be legally possible.

What does this mean for the future of Social Security?

Some Republican lawmakers have framed the debt ceiling fight as necessary to slow government spending; however, some economists, including Mitchell, see this as a “manufactured crisis” that threatens essential services, retirement savings and the overall economy.

“Every time one of these crises occurs, it’s signaling to the rest of the world, and to American investors that U.S. Treasuries are not as safe as we thought,” Boston University economics professor Laurence Kotlikoff said.

MORE: Debt ceiling breach could cut millions of jobs. Here’s who would lose employment first

Kotlikoff expressed further concern that the Social Security system will have over $65.9 trillion in unfunded financial obligations over the indefinite horizon, based on the entity’s own report.

However, the debate over the debt ceiling appears unlikely to produce a meaningful solution to the broader Social Security shortfall, though, according to Kotlikoff, Mitchell and Richtman.

When will retirees receive their payments?

Mitchell and Richtman remained optimistic that Social Security recipients would eventually receive their checks once a deal is made, albeit with some delay.

“I’m pretty confident that payments would be fulfilled,” Richtman said. “That’s not much comfort to those people who will not be able to pay for their groceries, their utilities or their rent while they’re waiting to receive a back payment.”

Ron DeSantis is learning that not every state wants to be Florida

NBC News

Ron DeSantis is learning that not every state wants to be Florida

Henry J. Gomez – May 22, 2023

Charlie Neibergall

Wherever Gov. Ron DeSantis goes, he brings greetings from “the free state of Florida.” He heralds his “Florida Blueprint.” And he brags about how many people originally from whichever state he happens to be visiting love taking advantage of Florida’s warm weather and low taxes.

But a funny thing has happened as DeSantis travels the country with a “Make America Florida” message that underpins the Republican’s soon-to-launch presidential campaign.

DeSantis has found that not everyone wants to be Florida. And he has encountered spirited pushback from competitive fellow governors and GOP officials who believe that their states have done just as much, if not more, to advance a conservative agenda.

“It’s a lot of fun competing with my colleagues and Republican governors across the country,” Iowa Gov. Kim Reynolds, who has hosted DeSantis in the first-in-the-nation caucus state, said in an interview with NBC News. “But make no mistake, we are competitors.”

Reynolds introduced and interviewed DeSantis at two events in March, making sure to hold up her own record alongside his and frame them as equally accomplished governors. DeSantis, though, emphasized that he enjoys a “special perch” or “unique catbird’s seat” to view how other governors are doing, “because when people visit or move here, they tell me what’s going on in their states.”

After bestowing this authority onto himself, he took some shots at Democratic-led Illinois and proclaimed that Reynolds indeed presides over “one of the best-run states.”

It’s a tricky task — one that has caught attention of DeSantis’ home state reporters at Florida Politics — that in the wrong hands can come off as a magnanimous pander or a condescending pat on the back. And there have been signs in recent weeks that DeSantis recognizes he needs to shift how he talks about Florida, making it seem less aspirational and exceptional and more like an example of Republican leadership that has thrived elsewhere.

Reynolds, who stressed that her rivalry with DeSantis is friendly, brushed aside a question about whether his comments might offend Iowans and then quickly pivoted to her own accomplishments.

“Offend Iowans? Oh no, because I took care of that,” Reynolds said. “Because starting this year, we no longer tax retirement income. I made a deal with Gov. DeSantis. I said, ‘Hey, I’ll let our retirees go down to Florida — maybe a couple of months in January and February when the temperature’s not as good here in Iowa. … He’s gracious when he talks about it.”

DeSantis’ Florida boosterism has also prompted some ribbing in New Hampshire. At a GOP dinner there last month, DeSantis spoke admiringly about that state’s “Live Free or Die” motto before launching into his self-congratulatory story. Before DeSantis left the stage, New Hampshire GOP Chairman Chris Ager playfully jabbed at the governor.

“Instead of people moving to Florida,” Ager said, “maybe you can move up here.”

DeSantis’ spokesperson did not return a request for comment for this piece.

As boastful as DeSantis can be, he also searches for common cause with his audiences. During two stops in Ohio last month he played up his mother’s roots in the Youngstown area and his wife’s childhood in Troy, near Dayton. During that trip, he told a GOP crowd over breakfast in Akron that some parts of Florida are like “Ohio South,” given the number of retirees there.

“And it’s all good, because I’ll tell you, when it came time to get that big victory margin, there were a lot of transplanted people from Ohio who had my back,” DeSantis said, referring to his 19-point re-election margin last year. “So, God bless them for doing that.”

During a speech in South Carolina, DeSantis mentioned how his in-laws now live in the state and how he’s noticed more traffic on the roads there when he and his wife visit.

“Similar to what we’ve seen in Florida over the years with people coming down here,” he said.

But he was unable to resist an attempt at one-upmanship: “Famously — and, as long as I’m around, permanently — we have no state income tax. You guys should try that sometime.”

In Georgia, a compliment quickly gave way to grievance.

“One thing we’re no longer No. 1 in is college football,” DeSantis told an audience during a visit to a gun store in March. “So I just have a little bit of a plea … just stop taking so many of our high school football recruits. Can you give us a little bit of a chance?”

Ager, the New Hampshire GOP chair, said in an interview that he sees nothing wrong with friendly competition — and he wasted little time asserting his own state’s superiority.

“We are clearly No. 1. Gov. DeSantis calls it the free state of Florida. But the Cato Institute … in their whole scoring criteria, New Hampshire came in first last year,” Ager said, referring to a libertarian think tank’s ranking of New Hampshire as the freest state, based on personal and economic freedoms. “So we have some objective criteria from a third party.”

DeSantis himself seems to have softened his pitch a tad. While addressing the Utah GOP’s organizing convention in late April, he called the state, led by Republican Gov. Spencer Cox, “one of the best governed, best performing states.” DeSantis then went on to bestow perhaps the biggest compliment he could, even if it kind of came at the expense of a third state.

“I was recently visiting with some folks in Iowa, and people said, ‘Iowa, they’re really the Florida of the Midwest with all the conservative stuff they’re doing,’” DeSantis said. “Well, let me just tell you, maybe this is a little secret, but it might just be that Florida’s the Utah of the Southeast.”

By the time he returned to Iowa this month, DeSantis sounded ready to reconsider.

“I was here in March, and someone kind of took note and they’re like, ‘Man … Iowa’s like the Florida of the Midwest.’ … But I just want to let you know, after watching all the good stuff you’ve done in Iowa, it may be that Florida is the Iowa of the Southeast. So we’ll see.”

For the competitive Reynolds, there’s no question.

“Absolutely,” said Iowa’s governor, who has not endorsed a candidate for president. “Florida is the Iowa of the Southeast, and we’re doing everything we can to continue that narrative.”

Texas is facing a housing crisis, a migrant crisis, a multi-year drought, and an epidemic of mass shootings. Ted Cruz, meanwhile, has opened an investigation into Bud Light.

Insider

Texas is facing a housing crisis, a migrant crisis, a multi-year drought, and an epidemic of mass shootings. Ted Cruz, meanwhile, has opened an investigation into Bud Light.

Katie Balevic – May 20, 2023

Texas is facing a housing crisis, a migrant crisis, a multi-year drought, and an epidemic of mass shootings. Ted Cruz, meanwhile, has opened an investigation into Bud Light.

Texas Sen. Ted Cruz opened an investigation into Bud Light’s partnership with trans influencer Dylan Mulvaney.

Meanwhile, Texas is grappling with a migration crisis and a severe housing crisis.

And also an epidemic of gun violence, extreme weather, and a multi-year drought.

Texas is facing a laundry list of crises: housing, immigration, and weather, among others.

So, naturally, Texas Sen. Ted Cruz is opening an investigation into Bud Light.

Social conservatives across the country continue to clutch their pearls over Bud Light’s partnership with influencer Dylan Mulvaney, a 26-year-old transgender activist who has shaken the far-right’s perception of reality by existing in the open.

The company’s partnership with Mulvaney led to right-wing calls for a boycott of Bud Light, which has impacted sales at its parent company, Anheuser-Busch. The latter reported a 23% drop in sales for the last week of April compared to the previous year, CBS News reported.

Together with Sen. Marsha Blackburn of Tennessee, Cruz sent a letter to the beer industry’s regulatory body, the Beer Institute, inquiring whether Anheuser-Busch’s partnership with Mulvaney “violates the Beer Institute’s guidelines prohibiting marketing to underage individuals.”

“The Beer Institute must examine whether your company violated the Beer Institute’s Advertising/Marketing Code and Buying Guidelines prohibiting marketing to individuals younger than the legal drinking age,” the letter said, claiming that “Mulvaney’s audience skews significantly younger than the legal drinking age.”

To avoid an investigation, Cruz and Blackburn offered Anheuser-Busch the option to “publicly sever its relationship with Dylan Mulvaney, publicly apologize to the American people for marketing alcoholic beverages to minors, and direct Dylan Mulvaney to remove any Anheuser-Busch content” from her social media platforms, they wrote in the letter.

The letter, which misgendered Mulvaney throughout, also seeks documents and information on how “Anheuser-Busch vets its partnerships and how Anheuser-Busch failed in assessing the propriety of a partnership with Dylan Mulvaney.”

Meanwhile, in Cruz’ home state of Texas:

Following the expiration of Title 42, the fates of thousands of immigrants are up in the air as politicians on both sides of the aisle play hot potato by busing them to different cities.

The state faces an urgent housing and affordability crisis. There are just 25 available rental units for every 100 low-income households, according to The Texas Tribune.

Texas is also grappling with a series of deadly extreme weather events. In 2022, at least 279 people in Texas died from extreme heat, and the year before that, 246 Texans died from a brutal winter freeze. And Texas farmers are bracing for another growing season beset by a multi-year drought.

Texas is also the epicenter of gun violence. It is the site of 5 of the 10 deadliest shootings in US history.

Beer marketing, however — thanks to Cruz — has all the attention of the state’s top leaders in Washington.

Texas is facing a housing crisis, a migrant crisis, a multi-year drought, and an epidemic of mass shootings. Ted Cruz, meanwhile, has opened an investigation into Bud Light.

Insider

Texas is facing a housing crisis, a migrant crisis, a multi-year drought, and an epidemic of mass shootings. Ted Cruz, meanwhile, has opened an investigation into Bud Light.

Katie Balevic – May 20, 2023

Texas is facing a housing crisis, a migrant crisis, a multi-year drought, and an epidemic of mass shootings. Ted Cruz, meanwhile, has opened an investigation into Bud Light.

Texas Sen. Ted Cruz opened an investigation into Bud Light’s partnership with trans influencer Dylan Mulvaney.

Meanwhile, Texas is grappling with a migration crisis and a severe housing crisis.

And also an epidemic of gun violence, extreme weather, and a multi-year drought.

Texas is facing a laundry list of crises: housing, immigration, and weather, among others.

So, naturally, Texas Sen. Ted Cruz is opening an investigation into Bud Light.

Social conservatives across the country continue to clutch their pearls over Bud Light’s partnership with influencer Dylan Mulvaney, a 26-year-old transgender activist who has shaken the far-right’s perception of reality by existing in the open.

The company’s partnership with Mulvaney led to right-wing calls for a boycott of Bud Light, which has impacted sales at its parent company, Anheuser-Busch. The latter reported a 23% drop in sales for the last week of April compared to the previous year, CBS News reported.

Together with Sen. Marsha Blackburn of Tennessee, Cruz sent a letter to the beer industry’s regulatory body, the Beer Institute, inquiring whether Anheuser-Busch’s partnership with Mulvaney “violates the Beer Institute’s guidelines prohibiting marketing to underage individuals.”

“The Beer Institute must examine whether your company violated the Beer Institute’s Advertising/Marketing Code and Buying Guidelines prohibiting marketing to individuals younger than the legal drinking age,” the letter said, claiming that “Mulvaney’s audience skews significantly younger than the legal drinking age.”

To avoid an investigation, Cruz and Blackburn offered Anheuser-Busch the option to “publicly sever its relationship with Dylan Mulvaney, publicly apologize to the American people for marketing alcoholic beverages to minors, and direct Dylan Mulvaney to remove any Anheuser-Busch content” from her social media platforms, they wrote in the letter.

The letter, which misgendered Mulvaney throughout, also seeks documents and information on how “Anheuser-Busch vets its partnerships and how Anheuser-Busch failed in assessing the propriety of a partnership with Dylan Mulvaney.”

Meanwhile, in Cruz’ home state of Texas:

Following the expiration of Title 42, the fates of thousands of immigrants are up in the air as politicians on both sides of the aisle play hot potato by busing them to different cities.

The state faces an urgent housing and affordability crisis. There are just 25 available rental units for every 100 low-income households, according to The Texas Tribune.

Texas is also grappling with a series of deadly extreme weather events. In 2022, at least 279 people in Texas died from extreme heat, and the year before that, 246 Texans died from a brutal winter freeze. And Texas farmers are bracing for another growing season beset by a multi-year drought.

Texas is also the epicenter of gun violence. It is the site of 5 of the 10 deadliest shootings in US history.

Beer marketing, however — thanks to Cruz — has all the attention of the state’s top leaders in Washington.

Texas has the anti-climate Governor: Greg Abbott signs Law Making EV Owners Pay for Their Gas-Free Cars

Gizmodo

Greg Abbott Signs Law Making EV Owners Pay for Their Gas-Free Cars

Lauren Leffer – May 19, 2023

Photo of electric vehicles charging
Photo of electric vehicles charging


EV drivers in Texas don’t pay at the pump, but will have to start paying a significant annual fee that critics are calling “punitive.”

Driving an electric vehicle in Texas is soon to become more expensive. Governor Greg Abbott signed a law (SB 505) on May 13 instituting new fees for registering and owning EVs in the state. Under the bill, electric car owners will have to pay $400 upon registering their vehicle. Then, every subsequent year, EV drivers will have to shell out an additional $200. Both of those fees are on top of the cost of the standard annual registration renewal fees, which are $50.75 each year for most passenger cars and trucks.

The law exempts mopeds, motorcycles, and other non-car EVs, and goes into effect starting on September 1, 2023.

At least 32 states currently have special electric vehicle registration fees, according to data from the National Conference of State Legislatures. These range from $50 in places like Colorado, Hawaii, and South Dakota to $274 (starting in 2028) in a recently passed piece of Tennessee legislation. Note: Tennessee lawmakers had originally proposed a $300 fee, but lowered it in response to pushback.

Like many other states that have instituted EV fees, the reasoning behind the Lone Star State’s new law is that electric car drivers don’t buy gas. Taxes at the fuel pump are the primary way that most states, Texas included, amass funds for road construction, maintenance, and other driving-related infrastructure.

“Currently, Texas uses the gasoline/diesel fuel tax to fund transportation projects; however, with the growing use of EVs, the revenue from the fuel tax is decreasing, which diminishes our ability to fund road improvements for all drivers,” said the bill’s author, Republican State Senator Robert Nichols, in comments about the legislation, per local NBC News affiliate KXAN.

But, compared with what gas drivers contribute, Texas’s EV fees seem a little out of whack. Charging $200 per year and $400 at the outset of EV ownership places Texas’s fee schedule at the higher price end of the policies out there. In comparison, Texas’s gas tax is among the lowest in the country, at just $0.20 per gallon. Just seven states impose a lower duty on gasoline than TX. Among the 10 most populous states in the country, additional fees levied elsewhere make Texas’s gas the cheapest.

The average Texas driver burned through ~55 million BTUs of motor gasoline in 2018, according to data from the U.S. Energy Information Administration. That’s equal to about 440 gallons of gas. At $0.20 per gallon, the standard car owner in Texas is paying just $88 per year in gas taxes—far less than the hundreds more EV drivers will now be throwing into the pot. A 2022 Consumer Reports analysis determined that a Texas driver’s gas tax contribution is even lower, at just $71.

The new law says loud and clear that Texas is “fully behind oil and gas,” Kara Kockleman, a transportation engineering professor at the University of Texas, Austin, told local ABC News affiliate KVUE. “Electric vehicles should pay a gas tax – I just think the tax on the conventional cars should be much, much higher than it is. We pay less for gas in this state than almost anyone in the world… Texas is really behind the curve on trying to do the right thing by the environment. And so, that’s embarrassing, I think, for all of us.”

There’s no doubt that roads and other car infrastructure are expensive. Though it can be easy to forget that—every time a driver cruises down the asphalt, complies with a traffic signal, or reads a highway sign—they’re benefiting from a costly system constructed for their particular use and benefit. But compared with other forms of transportation in the U.S., car ownership is already heavily subsidized. So is burning fossil fuels.

According to a 2015 analysis from the nonprofit Canadian media outlet The Discourse, society pays more than $9 for every $1 a driver pays in commuting: Through infrastructure, accident liability, noise and air pollution, and congestion. Buses, biking, and walking all eat up much less public funds for the same amount of miles traveled. EVs presumably also have a slightly lower public cost, as they’re quieter and don’t directly emit air pollution.

Yet in Texas, the tax load for driving an electric car will far exceed that of a gas-powered vehicle. The new law is “punitive” according to Consumer Reports. “Consumers should not be punished for choosing a cleaner, greener car that saves them money on fuel and maintenance,” Dylan Jaff, a policy analyst at CR, wrote in an April statement. “The fees proposed in this bill will establish an inequitable fee scale for EV owners, and will not provide a viable solution to the long-standing issue of road funding revenue.”

Luke Metzger, director of the non-profit advocacy group, Environment Texas, echoed Consumer Reports’ findings in a statement from last month. “The Texas Legislature is pouring sugar in the tank of the electric vehicle revolution. This punitive fee will make it harder for Texans to afford these clean vehicles which are so critical to reducing air pollution in Texas.”

Electric personal vehicles are not a perfect solution to the ongoing problem of petroleum-powered cars. Swapping every gas-guzzler for an EV still would use up an extraordinary amount of resources, that are likely to be ill-gotten. Public investment in mass transit would inarguably be a better environmental strategy. But, as long as the U.S. remains overwhelmingly car dominant and as long as most Americans lack access to adequate public transit, EV uptake remains important for lowering the nation’s carbon emissions.

Already, the upfront costs of purchasing an electric car are significantly higher than buying a gas vehicle. A disproportionate tax system adds to that burden, and it could dissuade people from transitioning to EVs.

Psaki on debt ceiling talks: China probably ‘rooting for default’

The Hill

Psaki on debt ceiling talks: China probably ‘rooting for default’

Alex Gangitano – May 19, 2023

Former Biden White House press secretary Jen Psaki said Friday that China is probably “rooting for default” while talks in Washington over a debt ceiling compromise have been cut short.

“All of these world leaders and their teams are watching what’s happening in the United States. Is democracy going to last? Are they going to default? All of that makes the United States look weak on the world stage,” Psaki said on MSNBC.

“If you’re China, you’re probably — you’re rooting for default,” she added.

President Biden has also warned it could be a concern internationally if the U.S. were to default on its debt, arguing recently that world leaders have been wondering about the looming risk.

Director of National Intelligence Avril Haines said earlier this month Beijing and Moscow would use a potential default for propaganda purposes through “information operations” as evidence the U.S. political system is chaotic.

Psaki outlined the situation with the president in Japan for the Group of Seven (G-7) summit, relying on Republican negotiators and White House officials to keep working to avoid a default until he returns to Washington on Sunday.

“So for the president, this is about — he’s there to project strength; the United States is back at the table,” she said. “But these negotiations, this being tricky and unresolved at home, is not great. And that’s important for people, Republicans, Democrats to really understand.”

She also warned against being overly concerned by the top Republican lawmakers negotiating a debt ceiling compromise with the White House cutting the talks short. The Republicans left a meeting with White House officials Friday in the Capitol, saying the two sides were too far apart and that the White House is being unreasonable.

“Sometimes, there are pauses where it looks like everything is going to explode and not come back together, and it does,” she said.

The White House had expressed optimism as recently as late Thursday, saying there had been “steady progress” in debt limit talks, and officials said Friday the president’s team is “working hard towards a reasonable bipartisan solution.”

Additionally, Psaki said there “will be no doubt legal challenges if the president were to invoke the 14th Amendment” in response to a letter sent earlier this week from 11 senators to Biden suggesting he prepare to invoke the amendment.

The president said last week there have been discussions about whether the 14th Amendment can be invoked, but he acknowledged it would have to go to the courts.

Lawrence O’Donnell Left Stunned By Revealing Response To Trump Pardon Allegation

HuffPost

Lawrence O’Donnell Left Stunned By Revealing Response To Trump Pardon Allegation

Ed Mazza – May 18, 2023

New Revolting Rudy Lawsuit

Lawrence O’Donnell took a closer look at one of the many serious allegations in a new lawsuit filed against Rudy Giuliani, the former New York mayor and longtime henchman to Donald Trump.

It’s the claim by Noelle Dunphy, a former aide now suing Giuliani for alleged sexual coercion and other claims, that he told her he could arrange for pardons from Trump for $2 million, with himself and the then-president splitting the money.

O’Donnell noted that Bill Barr, who served as attorney general to Trump, gave a rather lukewarm response when asked if he thought that was possible.

“I’m skeptical about that, I don’t think Rudy Giuliani would do that, I hope he wouldn’t, but I don’t know,” Barr said on Fox News.

O’Donnell was stunned.

“I don’t know?” he said. “William Barr knows Rudolph Giuliani well. William Barr knows Donald Trump well. And when asked if those two could have teamed up to sell $2 million pardons and split the money, William Barr’s answer is, ‘I don’t know.’”

O’Donnell said any attorney general not appointed by Trump or Richard Nixon would’ve given “a very, very strong answer.”

But Barr didn’t ― and O’Donnell found that extremely telling, as he explained on “The Last Word” on Wednesday night:

Florida passes bill to prevent billionaires like Elon Musk and Jeff Bezos being sued if their mega-rockets kill or injure people

Business Insider

Florida passes bill to prevent billionaires like Elon Musk and Jeff Bezos being sued if their mega-rockets kill or injure people

Marianne Guenot – May 17, 2023


How SpaceX, Blue Origin, and Virgin Galactic plan on taking you to space

The SpaceX Starship lifts off from the launchpad during a flight test from Starbase in Boca Chica, Texas, on April 20, 2023.
The SpaceX Starship lifts off in Boca Chica, Texas, on April 20, 2023.PATRICK T. FALLON/AFP via Getty Images
  • Florida passed a bill protecting space companies in case of injury or death of a crew member.
  • Passengers will have to sign a waiver stating they understand the risks before boarding a spaceship.
  • The bill comes as more billionaires are trying to make commercial space flight a reality.

Florida has signed a bill protecting the billionaire owners of space companies against civil lawsuits in case of the death or injury of a passenger or crew member.

Passengers will have to sign a waiver stating they understand the risks of spaceflight before boarding a spaceship, the bill states.

“Under Florida law, there is no liability for an injury to or death of a participant or crew in a spaceflight activity provided by a spaceflight entity if such injury or death results from the inherent risks of the spaceflight activity,” the bill states.

For private sector companies like Elon Musk’s SpaceX and Jeff Bezos’ Blue Origin, the bill “has the potential to limit the cost of litigation to businesses engaging in spaceflight activities,” a senate analysis of the bill said.

The bill extends protections to private space companies
Elon Musk
Elon Musk stands in front of a model of a rocket.(Photo by Hannibal Hanschke-Pool/Getty Images)

The Spaceflight Entity Liability bill, which was sent to Governor Ron DeSantis and passed the Florida Senate and House with little opposition, was adjusted to reflect “the evolution of spaceflight,” said Republican Sen. Tom Wright, the bill’s sponsor, per Florida Politics.

“Astronauts are no longer government astronauts. These are commercial crew,” said Republican Rep. Tyler Sirois at a March 9 hearing, per Florida Politics.

The new bill states that space flight remains “an extraordinarily dangerous condition” and people should take responsibility for the risks before boarding the rocket, the Senate bill analysis states.

The bill doesn’t protect the companies in case of “gross negligence”

Florida lawmakers have every motivation to protect the spaceflight industry, which contributes $17.7 billion in revenues to Florida’s economy, per Florida’s Aerospace and Spaceport Development Authority.

SpaceX and Blue Origin have their primary launch sites in Florida. Jeff Sharkey, a lobbyist representing SpaceX, also stood in support of the bill at a March 26 hearing, per Florida Politics.

Still, the bill doesn’t abrogate space companies from all responsibility. It states clearly that the company is still liable in case of gross negligence, if the company knew or should have known about dangerous conditions, or it intentionally tried to hurt or kill a crewmember.

Even in a case of negligence, the bill would be difficult to hold up in court, Mark Sundahl, director of the Global Space Law Center at Cleveland State University, told Gizmodo in an email.

The waiver, he said “assumes that there is ‘informed consent.’ It is questionable whether a passenger who is not familiar with the technology and history of spaceflight can truly be ‘informed’ as to the risks.”

More protections are needed as space tourism takes off
yusaku maezawa is seeing wearing a orange shirt, floating cross legged and waving in the International Space Station.
Japanese billionaire Yusaku Maezawa floats inside the International Space Station (ISS) as seen in this photo uploaded on December 9, 2021,Yusake Maezawa via Instagram/via REUTERS

The bill comes in the wake of a boom in space tourism led by private companies.

Multi-millionaire and billionaire civilians are hitching rides to low earth orbit and outer space.

“The fear is that the estate of ultra-wealthy passengers could bring massive claims for hundreds of millions of dollars in lost revenue due to the life of the passenger being cut short,” said Sundahl, per Gizmodo.

“The industry is still in its early days and such liability might stunt the industry,” he said.

These include billionaire Yusaku Maezawa, a Japanese fashion mogul who has already flown to the International Space Station and purchased all the seats on an upcoming SpaceX  Starship flight around the moon.

250,000 Florida residents kicked off Medicaid; more expected

Tampa Bay Times – St. Petersburg, Fla.

250,000 Florida residents kicked off Medicaid; more expected

Christopher O’Donnell, Tampa Bay Times – May 17, 2023

Health advocate groups are calling on Florida to halt a review of the eligibility of Medicaid recipients after close to 250,000 residents were terminated from the program during the past four weeks.

The Florida Department of Children and Families began a purge of the more than 5 million people from the state’s Medicaid rolls on April 18 as part of the winding down of the public health emergency that took effect May 11. Since then, state workers have reviewed more than 461,000 people, taking Medicaid benefits away from more than half.

About 80% of those terminated — roughly 205,000 — were disqualified because they failed to respond to requests for information needed to renew their eligibility, the state report shows. About 44,300 recipients were referred to other programs because they earn too much to be eligible.

The high number of so-called procedural terminations has alarmed health advocacy groups, who fear families, including children who are still eligible, will lose coverage because they were unaware of the requirement.

The Florida Policy Institute, an Orlando nonprofit group, was among groups who earlier this year warned of a “looming tidal wave of health coverage loss for children, parents, and young adults.” CEO Sadaf Knight on Wednesday said the state should pause the process and re-enroll those who have been removed until it has checked their eligibility.

“We have consistently urged the state and administration to do everything in its power to ensure no eligible child or parent was kicked off of health coverage because of bureaucratic inadequacies,” she said. “Now, the first reports confirm our fears about unnecessary losses in coverage. There is no excuse for the loss of health coverage for over 200,000 Floridians due to procedural ‘red tape.’”

The state’s Medicaid rolls swelled by nearly 1.8 million people since 2020, when the federal government paid states extra money to keep people covered during the pandemic, even if they were no longer eligible. Similar checks on recipients are being conducted in every state across the nation in accordance with instructions from the federal government.

The Department of Children and Families earlier this year released a plan to send renewal notices to recipients through emails and letters.

The plan states those who lose coverage will be referred to alternatives, including Florida KidCare, a government-sponsored health insurance program, and federally subsidized health centers that treat low-income patients. Hillsborough County also runs a health care program for low-income residents funded through a sales tax.

Hillsborough County received 877 new applications for its program in April. As of Wednesday, more than 1,060 people had applied this month, said spokesperson Todd Pratt.

“The federal pause on Medicaid redeterminations for the last three years has been unprecedented,” said Department Secretary Shevaun Harris in an April 18 memo to health care groups. “This change reflects a return to normal operations.”

Florida is one of only 10 states that have not taken advantage of a provision in the Affordable Care Act that rewards states for expanding Medicaid to more low-income residents.

Florida’s Medicaid program covers children ages 5 and younger in households that make $33,408 or less and older children whose parents make up to $31,795. But there is no coverage for parents who earn more than $7,000 a year, and adults with no children are ineligible no matter how little they earn. Only four states in the nation have stricter Medicaid eligibility, according to the Florida Policy Institute.

The Florida Health Justice Project is also calling for a halt to the state’s Medicaid review process. Eligible families with children who rely on Medicaid could fall through the cracks and be disqualified, said Alison Yager, the project’s executive director. She also questioned whether the state was following its plan to prioritize reviewing people who no longer qualified and those who have not used Medicaid services.

“It raises all kinds of questions about whether people are getting their correspondence or are having trouble getting through to (the Department of Children and Families),” she said. “People still don’t know this is happening.”

Many Texans must work for food stamps. But no work required for $92,000 payout.

Austin American – Statesman

Grumet: Many Texans must work for food stamps. But no work required for $92,000 payout.

Bridget Grumet, Austin American-Statesman – May 17, 2023

People in need wait to receive food from a mobile food pantry in Kyle. Texans who receive food stamps for their families must renew their status every six months.
People in need wait to receive food from a mobile food pantry in Kyle. Texans who receive food stamps for their families must renew their status every six months.

If you’re on food stamps, you can be sure the state of Texas will check up on you. Every six months, in fact.

You have to fill out new forms proving that you’re still poor and working at least 30 hours a week (unless you’re over 60 or physically unable to work). You have to demonstrate that your car isn’t worth too much, and, in some cases, show your housing and health care costs.

Every six months.

Just to get help to buy food — up to $939 a month for a family of four.

I kept thinking about that as I read a stunning story last week about government spending on the other end of the spectrum. As my colleague Tony Plohetski reported, Victor Vandergriff resigned from his post as a Texas Department of Transportation commissioner in 2018 — but the state continued to pay him for five years, in payments totaling nearly $92,000.

No one was checking up on Vandergriff. He didn’t have to justify himself every six months. The paychecks kept flowing, even though he stopped doing a job that, in fairness, he had quit.

When it comes to social safety net programs, our state is so worried that people might get something they don’t deserve. Where is that concern when it comes to someone drawing a state paycheck they didn’t earn?

The focus has been on the “holdover” provision in state law that allowed this to happen. To ensure the government keeps operating, original language in the 1876 Texas Constitution says that state officials remain state officials until they are replaced by someone else. So even though Vandergriff resigned, he remained a transportation commissioner on paper — and on the payroll — until Gov. Greg Abbott named a replacement this March.

Victor Vandergriff resigned in 2018 as a Texas Department of Transportation Commissioner, but he continued to be paid for five years until his replacement was named.
Victor Vandergriff resigned in 2018 as a Texas Department of Transportation Commissioner, but he continued to be paid for five years until his replacement was named.

In such a system, the onus is on the governor’s office to ensure that appointees who resign are replaced in a timely way. Abbott’s office didn’t respond to follow-up questions about why it took five years to name Vandergriff’s successor.

It’s worth noting that the governor’s office handles more than 1,500 appointments to various boards and commissions during each four-year term, and finding people with the right expertise and willingness to serve in these roles can take time.

Still, it’s striking to see that Texas’ systems are designed to provide grace periods and continued resources to those in power, while imposing rigid deadlines and an obstacle course of justifications for Texans in need.

The car conundrum

Consider the Supplemental Nutrition Assistance Program, or SNAP, more commonly known as food stamps.

Most food stamp recipients must prove they’re working. Getting to and from a job often requires a car. To get food stamps, though, your car can’t be worth more than $15,000 — a value that hasn’t been updated since 2001 to reflect inflation.

Heaven help you if you’re a two-car household: The second car can’t be worth more than $4,650, a value set in 1973.

“The wrinkle is, through the pandemic, when used car prices accelerated, it meant people’s existing vehicles became worth more,” Rachel Cooper, director of Health & Food Justice for Every Texan, told me. “So it also made it harder for (people) to qualify for SNAP.”

And some people actually lost their food stamps in the past couple of years because their used cars grew too much in value, she added.

Last month, the House passed a common-sense bill — House Bill 1287 — to provide a one-time adjustment to the allowable car value for food stamp recipients, and to create a process for considering future adjustments. The measure could be heard by the Senate Finance Committee this week.

Technically, it’s legislation about car values and benefits calculations. But really it’s about whether some Texans on the margins can qualify for the food their families need.

Difficult by design

Food stamps are just one example.

Consider Medicaid: Prior to the pandemic, some of the poorest kids in Texas routinely lost their health care coverage because the state used a flawed system to conduct random spot-checks for eligibility. New moms on Medicaid — nearly half of the women giving birth in Texas — lost their health coverage just two months after the baby arrived.

Federal COVID-era policies provided temporary relief, preventing anyone from losing health coverage during the pandemic. Lawmakers last session shifted Medicaid eligibility checks for kids to once every six months, and lawmakers this session are considering HB 12 to keep uninsured women on Medicaid for 12 months after they’ve given birth.

Meanwhile, as the pandemic-era protections lift, 2.7 million Texas women and children must once again prove to the state that they deserve health care coverage.

Applying for government assistance is notoriously tough. Nonprofits often have staffers dedicated to helping Texans navigate the bureaucratic maze, Cooper said.

The process is difficult by design.

“If you have a mentality that folks who need these programs are taking from everybody else, or somehow they’re not working, somehow they’re lazy, and now they’re abusing the system, then then you build a system to lock people out, to make it so that it’s only the desperate or the very well-resourced who make it through the gauntlet to get services,” Cooper said.

Contrast that with the ease with which Victor Vandergriff collected $92,000 from the state without doing a thing.

Vandergriff’s case might reflect one extreme example, but it still provides an instructive view. Our state systems are designed to maintain Texas government, to keep officials and their compensation in place.

Imagine if our systems were equally focused on maintaining Texans themselves, ensuring the most vulnerable can get the essentials they need.

Grumet is the Statesman’s Metro columnist. Her column, ATX in Context, contains her opinions.