Tag: taxes

Trump administration to pull $4 billion from California high-speed rail funding

The U.S. Department of Transportation says it plans to revoke $4 billion in federal funding for California’s high-speed rail project, citing what it calls “no viable path forward.”

The announcement came Wednesday in a 310-page report that outlines concerns about the project’s ballooning costs and delays, claiming the California High-Speed Rail Authority does not have the capacity to deliver the early operating segment by 2033 as planned. The DOT gave California 37 days to respond and correct the issues before the funding termination becomes final.

Voters initially signed off on California’s ambitious plans for a bullet train in 2008, with promises to connect the greater Los Angeles area to the Bay Area by 2033. It was originally expected to cost $33 billion, but now, estimates range between $89 billion and $128 billion.

Construction began in the Central Valley in 2015 but has incrementally progressed.

“Fifteen years, $16 billion, not one high-speed rail track has been laid. the waste, the abuse and the mismanagement of this project has called for this investigation,” Transportation Secretary Sean Duffy said in an online video.

Transit policy experts acknowledge the project faces major financial hurdles. Sebastian Petty, a senior advisor at SPUR, said the project is struggling to deliver on promises made to voters, largely due to limited funding.

“It puts pressure on what are already fairly scarce state dollars for transportation. So if, California is going to continue to invest heavily in the high-speed rail system, it puts pressure on the availability of that funding for transit operations uses potentially for other transit capital projects in the Bay Area,” Petty said.

Supporters, including state lawmakers, argue the delays are frustrating – but cutting federal funding would worsen the situation. Gov. Gavin Newsom has previously vowed to fight back, insisting the project will move forward and federal dollars will be recovered.

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Belated Republican Objections to the One Big Beautiful Bill Glide Over Its Blatant Fiscal Irresponsibility

The One Big Beautiful Bill Act, which the House of Representatives narrowly approved early in the morning on Thursday, May 22, lives up to its name in at least one respect: It is big, weighing in at 1,037 pages and nearly 200,000 words. Since the bill’s final text was not available until 10:40 p.m. on Wednesday, about eight hours before it passed by a single-vote margin shortly before 7 a.m. the next day, it would not be surprising if bleary-eyed legislators overlooked some of its nuances in their hurry to deliver the package that President Donald Trump demanded. As Reason‘s Liz Wolfe notes, at least two Republicans—Reps. Mike Flood (R–Neb.) and Marjorie Taylor Greene (R–Ga.)—have publicly admitted as much, saying they missed objectionable parts of the bill when they voted for it.

If Flood and Greene had voted no, it would have been enough to change the outcome. Furthermore, it seems safe to assume that at least some of their colleagues had similar regrets but are too embarrassed to admit that they failed to exercise the minimum diligence that should be expected from members of Congress. But the complaints from Flood and Greene are notable for another reason: They have nothing to do with the bill’s blatant fiscal irresponsibility, the main flaw highlighted by critics such as Rep. Thomas Massie (R–Ky.), Sen. Rand Paul (R–Ky.), and Elon Musk, who on Tuesday condemned “this massive, outrageous, pork-filled Congressional spending bill” as “a disgusting abomination.”

That much was clear prior to the House vote. As Reason‘s Eric Boehm noted the day before Flood and Greene gave their crucial assent to the bill, the Congressional Budget Office (CBO) projected that it would add $2.3 trillion to the national debt over 10 years—an estimate that the CBO upped to $2.4 trillion this week. Boehm added that “other assessments of the bill” by the Yale Budget Lab (originally published on May 16) and the Penn Wharton Budget Project (published three days later) estimated that it would add “more than $3 trillion” to the debt.

Those are low-ball estimates, based on the unrealistic assumption that Congress will allow Trump-favored tax cuts to lapse toward the end of that period. If “temporary provisions in the bill are made permanent,” Boehm reported, the Yale Budget Lab estimated that it would trigger $5 trillion in new borrowing.

The national debt currently exceeds $35 trillion, including about $29 trillion in debt held by the public, which is about the size of the entire U.S. economy. In January, the CBO projected that publicly held debt would hit 119 percent of GDP by 2035. Two months later, Trump promised to do something about that. “In the near future,” he told Congress, “I want to do what has not been done in 24 years—balance the federal budget. We’re gonna balance it.” But the glaring gap between that promise and the One Big Beautiful Bill Act did not faze Flood or Greene, whose concerns are much narrower.

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Missouri Officials Will Begin Unannounced Marijuana Dispensary Visits For New Product Testing Initiative Next Month

State cannabis regulators will begin their first attempt next month to double check the work of licensed testing labs tasked with ensuring the safety of Missouri marijuana products.

Starting July 1, staff with the Division of Cannabis Regulation will arrive unannounced at dispensaries and collect about 50 products a month off the shelves. They’ll take them to the Missouri State Public Health Reference Laboratory to be tested for things like mold, pesticides and a whole range of other things.

Ryan Bernard, the division’s testing and research unit manager, said the unannounced sampling has been in the works for a while as a way to add an extra level of compliance. The division, Bernard said, isn’t expecting to find problems.

“We won’t know until we see the data,” Bernard said. “I have full faith and confidence in our testing licensees that they’re testing according to rule as it’s been outlined.”

However, national testing lab experts told The Independent that Missouri’s regulators might be shocked at the results.

“Shelf testing has not gone well in any state that I know of, especially if it’s just starting,” said Josh Swider, vice chair of the cannabis working group for American Council of Independent Laboratories. “It will be very telling very fast.”

Swider pointed to a citation in Arizona in April of a cannabis lab, where the state found more than a dozen alleged “deficiencies” including problems with the lab’s potency testing and pesticide and microbial detection methods.

Swider called the levels of pesticides on the Arizona products “sickening.”

“But this is what you’re seeing around the country,” said Swider, co-founder and CEO of Infinite Chemical Analysis Labs in San Diego. “Regulators are starting to enforce. They’re realizing an issue that’s been systemic for a long time.”

Other common issue Missouri regulars might also find, he said, are inflated levels of THC on products.

Regulators previously talked about conducting a “round robin” testing, where the state’s certified testing labs would double check each other’s work under the state’s instruction. Amy Moore, director of the Division of Cannabis Regulation (DCR), told lawmakers in 2023 that this additional testing rule was “critical.”

“The challenges in regulating and relying on for-profit cannabis testing labs,” Moore told lawmakers at a 2023 committee hearing, “is one of the most discussed challenges in the national cannabis regulatory community.”

However, the state never ended up getting the process going for a variety of factors, Bernard said, so the unannounced samples will be the regulators first attempt at a testing backstop.

Lawmakers began allocating money for this kind of sampling to be tested at the state laboratory in the fiscal year that began on July 1, 2024 with $3.8 million. Most of it went unspent because the cannabis testing methods were “still in the process of being implemented,” according to state budget documents. Another $2.4 million was allocated for this fiscal year ending on June 30, and it’s unclear how much of it has been spent.

Bernard couldn’t speak on the budget for testing, he said, because the division and state lab budgets are “totally separate.”

“Our operating budget is DCR only,” he said. “State public health labs is theirs.”

The lab will receive another $2.4 million for the fiscal year beginning July 1.

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Catholics fight government surveillance in confession after wins against abortion mandate, tax

Catholic physicians and social service workers won over the Trump administration and Supreme Court, respectively, last week against their compelled participation in emergency room abortions and a state unemployment compensation program that costs more than their own church’s.

Bishops hope to make it a trifecta against a Washington state law that violates the seal of confession, threatening priests with imprisonment and fines if they don’t report suspected child abuse or neglect when “penitents” confess, but not lawyers who learn the same from clients.

Diocesan leaders filed a motion for preliminary injunction Thursday against Democratic Gov. Bob Ferguson, Attorney General Nicholas Brown and county prosecutors in federal court in Tacoma to block SB 5375 at least 10 days before it takes effect July 27.

The Justice Department also quickly opened a civil rights investigation into the law as a prima facie First Amendment violation after Ferguson signed it, expanding the category of mandatory reporter to “member of the clergy,” defined as any regularly licensed, accredited or ordained minister, priest, rabbi, imam, elder, or similarly positioned religious or spiritual leader.

Denial of an injunction would likely fast-track the case to the 9th U.S. Circuit Court of Appeals and, if also rejected by the historically most liberal appeals court, to SCOTUS, which has rarely struggled to reach lopsided rulings upholding religious liberty.

The high court Thursday unanimously overturned the Wisconsin Supreme Court‘s ruling that found that a local Catholic Charities bureau’s work is primarily secular and hence it can’t get a religious exemption from paying into the state unemployment compensation system.

Justices unanimously ruled for Gerald Groff two years ago after the U.S. Postal Service threatened to fire the evangelical Christian for refusing to work Sundays under an Amazon delivery agreement, junking the “de minimis cost” standard that let employers easily deny religious exemptions but only appeared in a footnote in a 1977 ruling.

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Top U.S. General in Africa Paints Grim Picture of U.S. Military Failures in Africa

President George W. Bush created a new command to oversee all military operations in Africa 18 years ago. U.S. Africa Command was meant to help “bring peace and security to the people of Africa.”

The Trump administration now has AFRICOM on the chopping block as part of its sweeping reorganization of the military. According to the general leading the command, its mission is far from accomplished.

Gen. Michael Langley, the head of AFRICOM, offered a grim assessment of security on the African continent during a recent press conference. The West African Sahel, he said last Friday, was now the “epicenter of terrorism” and the gravest terrorist threats to the U.S. homeland were “unfortunately right here on the African continent.”

The embattled four-star general — who noted his days were numbered as AFRICOM’s chief — was speaking from a conference of African defense chiefs in Kenya, where he had been imploring ministers and heads of state to help save his faltering command. “I said: ‘OK, if we’re that important to [you], you need to communicate that,’” he explained, asking them to have their U.S. ambassadors make entreaties on behalf of AFRICOM.

Current and former defense officials, who spoke on the condition of anonymity to provide candid assessments, were divided on whether Langley deserves a measure of blame for the dire straits the command finds itself in.

One former defense official spoke highly of Langley, calling him “an effective and transformational leader” who “rapidly grew into the job and developed strong, fruitful relationships with members of Congress.”

A current official, however, said almost the opposite, calling the four-star general a “marble mouth” who did a poor job of making a case for his command, “fumbled” relations with Defense Secretary Pete Hegseth, and diminished AFRICOM’s standing with legislators. Asked by messaging app if the latter assessment was accurate, a former Africa Command official sent a laughing emoji and replied “no comment” followed by “but yes.” (The official said he could be quoted as such.)

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The 5 Worst Green Energy Projects Funded by Biden

Despite the Department of Government Efficiency’s failures to cut spending and the president’s support for a bill that will add $2.4 trillion to the federal deficit over the next 10 years, some wasteful government projects have been cut under the Trump administration. 

Energy Secretary Chris Wright recently canceled 24 grants approved by the Energy Department under former President Joe Biden. The action netted over $3 billion in savings. Earlier in May, Wright axed an additional $7 billion of green energy loans approved by Biden. 

Unfortunately for taxpayers, the savings that Wright has identified are only a drop in the bucket of the wasteful spending that the Biden Energy Department approved. Here are five of the most egregious examples:

1. $10 Billion for Ford’s Electric Vehicle Push and Eminent Domain Abuses 

In December 2024, the Energy Department’s Loan Programs Office (LPO) closed a $9.63 billion direct loan to BlueOval SK LLC, a joint venture between Ford and South Korean conglomerate SK On. The loan was approved to fund “the construction of three manufacturing plants, to produce batteries for Ford Motor Company’s future Ford and Lincoln electric vehicles [E.V.s],” according to the award announcement. 

BlueOval has begun or completed construction for these facilities—one in western Tennessee called BlueOval City—and two in Hardin County, Kentucky, known as Kentucky 1 and 2. 

In addition to allocating millions of dollars in tax credits for the rights to house BlueOval City, the Tennessee Legislature also created the Megasite Authority of West Tennessee, reports Reason‘s Joe Lancaster. The board was granted the authority to execute contracts on behalf of development, which includes the power to seize private property through eminent domain. In most cases, the board lowballed local property owners, including Ray Jones, who was offered “a measly $8,165” for his acre of land, even though the going rate was $200,000 per acre. There is no set date for when the plant will open. 

Kentucky 1 has faced numerous occupational safety and health complaints from its workers. A review from The Courier-Journal found “dozens of workplace injuries; hospitalizations related to respiratory issues; unshakeable mold contamination; a bat-infested training facility; blocked emergency exit doors; and chemical exposure risks.” The state has opened investigations into the plant, which is scheduled to begin production later this year. Kentucky 2’s opening has been indefinitely delayed. Michael Adams, CEO of BlueOval SK, recently told WDRB, that the plant’s opening date will be a market decision, but “the market is telling us that Kentucky 2 is not ready.”

2. Facility Upgrades for ExxonMobil

The Bipartisan Infrastructure Law passed in 2021 created a new office within the Energy Department called the Office of Clean Energy Demonstrations (OCED), whose goal is to finance first-of-a-kind clean energy projects through private-public partnerships. One of the largest beneficiaries of the program has been Exxon Mobil. 

The oil major was awarded a $332 million grant from OCED to “enable the use of hydrogen in place of natural gas” at a textile and plastics facility in Baytown, Texas. At the time of the announcement, the Biden administration said the project would prevent 2.7 million metric tons of carbon emissions per year. While an interesting technology, the project did not need taxpayer support. In the same year that Exxon received this disbursement (2024), the company reported annual earnings of $33.7 billion. The project’s funding was canceled on May 30 by Wright. 

3. Reducing the Carbon Footprint of Ketchup 

No industry was spared from corporate welfare under the Biden administration, including condiments. In October 2024, Kraft Heinz was awarded a grant of up to $170.9 million from OCED. The award was intended to fund energy efficiency upgrades, the installation of heat pumps and electric boilers, and renewable energy technologies at 10 of the company’s facilities. 

The grant was also rescinded on May 30. Kraft Heinz says it will continue to invest in upgrading 30 of its manufacturing facilities and will invest $3 billion over the next five years “to modernize” its domestic supply chain infrastructure.

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California Speaker: I Will Consider Withholding Federal Taxes from The Trump Administration If They Slash Federal Funding from My State

One of the most powerful Democrats in California is shooting his mouth off about breaking federal law after learning the Trump Administration might be about to drop the hammer on his state.

Multiple sources told CNN that the Trump administration is preparing to cancel a large portion of federal funding for California, which might begin as soon as today.

According to the outlet, Team Trump is specifically looking at entirely cutting off federal grant funding for the University of California and California State University systems.

As TGP readers know, President Trump has been rightfully livid over California’s open defiance of federal law, particularly over transgender issues.

President Trump issued an executive order in February, which was supposed to ensure that biological men could not compete in women’s sports. But California and other blue states have decided to defy Trump’s order and continue to allow men to compete against women.

White House spokesman Kush Desai released the following statement Friday afternoon, slamming California but adding that no final decision has been made.

“No taxpayer should be forced to fund the demise of our country. “No final decisions, however, on any potential future action by the Administration have been made, and any discussion suggesting otherwise should be considered pure speculation.”

Upon reading this, the speaker of the California State Assembly, Robert Rivas, erupted in anger and threatened various responses, including withholding federal taxes from the federal government.

“This is unconstitutional and vindictive,” Rivas wrote on BlueSky. “We’re the nation’s economic engine and the largest donor state, and deserve our fair share.”

“I’ll use every legal and constitutional tool available to defend CA — we must look at every option, including withholding federal taxes.”

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Snarky Democrat Rep’s Interrogation of Commerce Secretary Howard Lutnick Backfires When She Makes an Embarrassing Blunder While Discussing Bananas 

A Democratic member of Congress earlier this week made such an embarrassing mistake regarding one of the world’s most famous fruits that one could justify an IQ test for certain members of Congress.

Commerce Secretary Howard Lutnick was testifying before the House Appropriations Committee on Thursday to defend Trump’s tariff policy when a snarky Rep. Madeline Dean (D-PA) decided to try to entrap him with a question about tariffs on bananas while holding the fruit.

After Lutnick calmly stated the answer (10%), Dean fired back and said Walmart had already increased the tariffs. Unbothered, Lutnick pointed out that there is no tariff for people who manufacture in America.

Immediately following Lutnick’s remark, Dean face-planted with a comment that is news to people in several states, including Hawaii and Florida.

TRANSCRIPT:

DEAN: What’s the tariff on bananas? Americans, by the way, LOVE bananas… What’s the tariff on bananas?

LUTNICK: The tariff on bananas would be representative of the countries that produce them.

DEAN: And what’s that tariff?

LUTNICK: Generally 10%.

DEAN: Walmart has already increased the cost of bananas by 8%.

LUTNICK: If countries do deals with us, that tariff will go to zero…

DEAN: But the cost is on the American consumer now…Mr. Secretary, I believe you know better. I believe you recognize that a trade deficit is nothing to fear…I wish you would show that truth to this administration.

LUTNICK: There’s no uncertainty if you build in America…There will be no tariff.

DEAN: We can’t produce bananas in America…We cannot build bananas in America.

The truth is that bananas have been grown in America for decades, with the first banana farm established in 1876 in Florida, near Silver Lake.

Today, bananas are grown in several states, with Hawaii producing the most. Florida ranks second.

Other states, such as California, Texas, Louisiana, and Arizona, produce bananas as well, albeit nowhere near the scale of Hawaii and Florida due to their climate.

Florida is also a major exporter of bananas, particularly specialty ones such as Thai and cooking bananas.

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Lawyer Who Bulletproofed Biden Bucks Now Fighting Trump Admin To Keep Gravy Train Rolling

A former Biden administration official who made it more difficult for agencies to terminate certain grants is now backing several legal efforts to ensure money awarded before President Donald Trump took office keeps flowing to left-wing organizations.

Daniel Jacobson, who was previously general counsel of Biden’s Office of Management and Budget (OMB), is opposing the Trump administration in cases that seek to restore billions in Biden administration grants from the Department of Education (ED), the Environmental Protection Agency (EPA), the Department of Health and Human Services (HHS) and the United States Agency for International Development (USAID). He also filed a lawsuit against OMB. 

Jacobson’s involvement “raises many questions,” Michael Chamberlain, director of Protect the Public’s Trust, told the Daily Caller News Foundation. He noted that former government lawyers have “obligations regarding what legal matters they can work on after leaving government service, under both federal ethics law and under professional rules of conduct, particularly as those rules have been adopted by the DC Bar, where Mr. Jacobson is a member.”

“If a government lawyer were to learn client confidences or secrets during his representation of an agency and use such information in litigation against that very same agency, it could very well implicate these ethics obligations,” Chamberlain said. “Although it’s not clear that has happened here, on the face of it, the situation raises many questions.”

Jacobson did not respond to requests for comment.

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Report: Biden Gave ‘Millions’ In Tax Dollars To ‘Soros-Backed NGO,’ Group Pushing Men In Women’s Prisons

Senate Judiciary Committee Chairman Chuck Grassley, R-Iowa, released a report “exposing the disastrous consequences” of Biden’s Department of Justice (DOJ) awarding millions in taxpayer-funded grants to two non-governmental organizations with “radical” agendas.

The report showcases how, as Grassley noted in a statement, the tax dollars Biden’s DOJ gave to the Vera Institute of Justice (Vera) and Impact Justice funded “left-leaning agendas that ultimately put lives at risk.”

“This is just a small sampling of the grant programs scrutinized by the Justice Department, but an inspection of these recipients suggests potentially a much bigger problem in how the Justice Department historically has awarded its grant funds,” Grassley said in his introduction to the report.

According to the group’s website, Vera’s mission is to create programs to “end the criminalization and mass incarceration of people of color, immigrants, and people experiencing poverty.”

Vera “reportedly received $6.75 million in contracts from the Biden Administration’s Department of Justice” between 2022-2023, Grassley’s report reads, citing InfluenceWatch. In April, the Trump DOJ said it was terminating $5 million dollars worth of grants to the organization on the basis that its activity “no longer effectuate[s] the program goals or agency priorities,” Vera reported.

Later that month, Vera launched an “Emergency Justice Fund,” asking people to give them money directly.

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