Hillicon Valley: FTC reportedly settles with Facebook for $5B fine | Trump calls to regulate Facebook's crypto project | Court rules Pentagon can award $10B 'war cloud' contract | Study shows automation will hit rural areas hardest

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Welcome! Follow the cyber team, Olivia Beavers (@olivia_beavers) and Maggie Miller (@magmill95), and the tech team, Harper Neidig (@hneidig) and Emily Birnbaum (@birnbaum_e).

 

DEVELOPING: The Federal Trade Commission (FTC) has reportedly approved a roughly $5 billion settlement with Facebook following its investigation into the company’s handling of the Cambridge Analytica scandal.

The Wall Street Journal, citing a person familiar with the matter, reported Friday that the FTC voted along party lines this week to approve the settlement, closing the investigation into the Cambridge Analytica incident.

The vote was 3-2, with Republicans in the majority approving the deal, according to the Journal.

The investigation was launched in March 2018 after reports that data from tens of millions of Facebook users was shared with the outside firm Cambridge Analytica. The agency had focused on whether Facebook violated a 2011 consent agreement with the FTC requiring greater privacy protections and transparency for users.

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The FTC and Facebook both declined to comment. According to the Journal, the settlement now heads to the Department of Justice for review.

Why the settlement could bring more controversy: Facebook told investors earlier this year that it expected to pay between $3 billion and $5 billion to settle the investigation.

That admission worried the company’s biggest critics, including members of Congress, who argued that any sum in that range would hardly make a dent in Facebook’s bottom line and that the agency needed to impose severe penalties in order to change its behavior.

Though the fine would be the largest the FTC has ever imposed for privacy violations, it amounts to a fraction of the $55 billion in revenue Facebook generated last year.

In May, Sens. Richard Blumenthal (D-Conn.) and Josh HawleyJoshua (Josh) David HawleyStephen King says Trump’s presidency is ‘scarier’ than his novels Hillicon Valley: Trump rails against ‘terrible bias’ at White House social media summit | Twitter hit by hour-long outage | Google admits workers listen to smart device recordings Trump rails against ‘terrible bias’ at social media summit MORE (R-Mo.) wrote to the FTC saying that the sum Facebook expected to pay would be a “bargain” for the nearly $600 billion company and that the agency should consider holding individual executives responsible.

“Even a fine in the billions is simply a write-down for the company, and large penalties have done little to deter large tech firms,” the bipartisan duo wrote. “If the FTC is seen as traffic police handing out speeding tickets companies profiting off breaking the law, then Facebook and other will continue to push the boundaries.”

The Journal reported that the settlement will include “government restrictions on how Facebook treats user privacy” but it’s unclear what that would entail.

Facebook was also fined £500,000 last year by the UK Information Commissioner’s Office over the scandal, the largest penalty the office was authorized to levy.

Read more here.

 

TRUMP’S NO BITCOIN BRO: President TrumpDonald John TrumpTrump boasts that Kim Jong Un ‘was so happy to see me’ Romney defends Paul Ryan: ‘The fault for our 2012 loss is mine alone’ Trump declares emergency over Tropical Storm Barry MORE denounced various cryptocurrencies, including Facebook’s newly announced Libra, on Thursday as lawmakers and regulators express deep concern about the social media giant’s financial services ambitions.

In a series of tweets, Trump said he was “not a fan” of digital ledger-based currencies such as bitcoin, insisting they could be used easily to conduct criminal transactions.

“I am not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air. Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity,” Trump tweeted Thursday night.

Special criticism for Facebook’s Libra: Trump also ripped Facebook for its plan to launch a payments system next year, in which users exchange money through a proprietary cryptocurrency called Libra.

The Swiss nonprofit set up to control Libra is not a chartered bank, but Trump insisted that Facebook must seek a formal federal approval to become one if it seeks to enter the financial services industry.

“Similarly, Facebook Libra’s ‘virtual currency’ will have little standing or dependability. If Facebook and other companies want to become a bank, they must seek a new Banking Charter and become subject to all Banking Regulations, just like other Banks, both National and International,” he tweeted.

“We have only one real currency in the USA, and it is stronger than ever, both dependable and reliable,” Trump continued. “It is by far the most dominant currency anywhere in the World, and it will always stay that way. It is called the United States Dollar!”

Congress agrees: Trump’s skepticism of cryptocurrencies and Libra specifically reflects concerns of many lawmakers and regulators across the ideological spectrum.

Lawmakers insist that Facebook’s massive reach and history of privacy breaches could make its foray into financial services a dangerous gambit. The Democratic-controlled House Financial Services Committee and GOP-controlled Senate Banking Committee are set to grill Libra chief David Marcus in hearings next week.

And the Fed: And Federal Reserve Chairman Jerome Powell warned in congressional testimony Wednesday and Thursday that Libra poses “serious concerns” for the global economy.

“It cannot go forward without there being broad satisfaction with the way the company has addressed” privacy, money laundering, consumer protection and financial stability, Powell said Wednesday.

“All of those things will need to be addressed very thoroughly and carefully.”

Powell added that regulators may label Libra as a systemically important financial institution. That designation would subject Libra to strict capital and liquidity standards the Fed applies to megabanks.

There is also wide bipartisan concern in Washington that cryptocurrencies are not adequately policed for illicit financing. Regulators have homed in on the surge of financial schemes based on cryptocurrencies, though many consumers exchange legitimate digital coins without incident.

Read more on Trump’s crypto views here.

 

RETURN OF THE JEDI: A federal judge ruled on Friday that the Department of Defense (DOD) can move forward with its plan to award a $10 billion “war cloud” contract later this summer, which will be likely given to either Amazon or Microsoft, knocking down a legal challenge by cloud-computing competitor Oracle.

The U.S. Court of Federal Claims opinion, written by Senior Judge Eric Bruggink, denied Oracle’s claims that the Pentagon created the contract specifically with Amazon in mind or that there were conflicts of interest between Amazon’s cloud-computing service, Amazon Web Services (AWS), and the DOD.

Bruggink said Oracle “cannot demonstrate prejudice” against itself in the Joint Enterprise Defense Infrastructure (JEDI) contract process.

“We conclude as well that the contracting officer’s findings that an organizational conflict of interest does not exist and that individual conflicts of interest did not impact the procurement were not arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law,” the opinion states.

The highly anticipated decision paves the way to allow the Pentagon to award JEDI to either AWS or Microsoft’s cloud-computing service, Azure, likely by August.

Amazon and Microsoft are now the top contenders for the contract, which requires a high-level security clearance and enormous technical capabilities that most other cloud-computing services cannot offer.

Reaction: “AWS, along with our partner community, stands ready to support and serve what’s most important — the DoD’s mission of protecting the security of our country,” an AWS spokesperson said in a statement on Friday. “The DoD deserves access to the best technology in the world and we are unwavering in our support to their mission.”

Oracle has claimed that the contract process was biased against them from the outset, saying the security specifications opened the door for only AWS. AWS and the DOD have aggressively beat back those claims, saying Oracle’s cloud-computing service simply didn’t meet the necessary security criteria.

“Oracle’s cloud infrastructure 2.0 provides significant performance and security capabilities over legacy cloud providers,” an Oracle spokeswoman said in a statement after the DOD v. Oracle decision emerged on Friday. “We look forward to working with the Department of Defense, the Intelligence Community, and other public sector agencies to deploy modern, secure hyperscale cloud solutions that meet their needs.”

Read more here. 

 

RUBIO WANTS TO SLOW DOWN CONTRACT: Sen. Marco RubioMarco Antonio RubioRubio asks White House to delay B Pentagon contract over Amazon concerns   Republicans say they’re satisfied with 2020 election security after classified briefings Tlaib blasts Foreign Affairs Committee’s anti-BDS bill as ‘unconstitutional’ MORE (R-Fla.) sent a letter to President Trump’s national security adviser, John BoltonJohn Robert BoltonRubio asks White House to delay B Pentagon contract over Amazon concerns   There’s a new goal for US-Iran policy Trump’s foreign policy magic act MORE, on Thursday asking the White House to delay awarding a $10 billion Pentagon cloud computing contract over concerns the procurement process has been unfair and potentially biased toward Amazon.

In the letter obtained by The Hill, Rubio said that the criteria for the lucrative Joint Enterprise Defense Infrastructure (JEDI) contract has suffered from a “lack of competition” and that moving ahead at this point could “result in wasted taxpayer dollars and fail to provide our warfighters with the best technology solutions.”

Rubio said the contract should be held until the Defense Department’s inspector general can review “potential conflicts of interest related to the JEDI procurement,” and he raised questions about whether the entire process was rigged through “arbitrary criteria” meant to whittle the finalists for the contract down to Amazon and Microsoft.

“I respectfully request that you direct the delay of an award until all efforts are concluded in addition to evaluating all bids in a fair and open process in order to provide the competition necessary to obtain the best cost and best technology for its cloud computing needs,” Rubio wrote.

Rubio is the latest Republican to pressure the White House to abandon its negotiations for the contract and to begin the process from the start.

In a letter to the White House last month, four conservative groups warned that the Pentagon contract was set up in a way that “predetermines” that Amazon would be the winner.

Read more on GOP pushback here.

 

YANG GANG WARNED US: Advancing technology and automation are likely to hit rural areas and the middle class hardest, according to a new report by McKinsey.

The report, entitled The Future of Work in America, looked at over 3,000 counties and 315 cities, and found that some 83 percent of the counties expected to see the highest levels of job displacement were rural areas. Those vulnerable areas house 20.3 million people.

Large urban centers and their peripheries would see a lower rate of displacement, and also benefit more from the creation of new jobs that likely require more skills and education.

“Urban areas with more diversified economies and workers with higher educational attainment, such as Washington, DC, and Durham, NC, might feel somewhat less severe effects from automation,” the report said.

The trend will only exacerbate an uneven recovery from the Great Recession, where much of the job growth has been concentrated in cities and hubs, while distressed rural areas still have a net loss of jobs.

Another trend the report said was “worrisome” was the hollowing out of middle-income jobs.

“Our analysis suggests that by 2030, they could decline as a share of national employment by 3.4 percentage points,” the report found.

“Forging career pathways to help people move up and finding sources of future middle-wage jobs will be essential to sustaining the US middle class,” it continued.

Much of that has to do with what kinds of jobs are created and lost as automation increases.

Office support and food service jobs could decline, but jobs in health, STEM fields, business services and more creative fields would see growth.

The changing face of the American economy is a central issue in many of the political campaigns.

2020 Democratic contender Andrew YangAndrew YangBiden, Warren top latest poll of 2020 Democratic field Gravel campaign to air Biden attack ad on MSNBC Andrew Yang raises .8 million in second quarter MORE‘s central campaign promise is introducing a universal basic income to combat automation, which would provide every family with $1,000 a month.

Sens. Elizabeth WarrenElizabeth Ann WarrenThe Hill’s Morning Report — Trump retreats on census citizenship question The Memo: Raids to open new phase in Trump immigration war Buttigieg: Trump census reversal a ‘face-saving’ recognition that ‘he’s been on the wrong side’ MORE (D-Mass.) and Bernie SandersBernie SandersPolitical ‘solutions’ to surprise medical billing will make the problem worse The Hill’s Morning Report — Trump retreats on census citizenship question CBC lawmakers rip Justice Democrats for targeting black lawmakers for primaries MORE (I-Vt.) are campaigning on restructuring the economy to help those at the bottom.

Read more here.

 

ALRIGHT CHIEF: Carla Provost, the chief of Customs and Border Protection (CBP), was previously a member of a controversial Facebook group featuring extensive sexist and racist posts from agents, investigative outlet The Intercept reported Friday.

Provost posted in the group, which has brought new scrutiny upon the agency, as recently as three months after her August appointment, according to The Intercept.

When an agent posted a photo of a Jeopardy question about Provost, she replied with a friendly comment, according to screenshots.

Though Provost herself was not linked to any offensive material, the revelation emphasizes the ties between the highest ranks of CBP and the controversial Facebook group, which has sparked condemnations and questions from top lawmakers.

House Homeland Security Committee Chairman Bennie ThompsonBennie Gordon ThompsonLive coverage: House Oversight examines Trump family separation policy Hillicon Valley: Trump rails against ‘terrible bias’ at White House social media summit | Twitter hit by hour-long outage | Google admits workers listen to smart device recordings Trump officials defend use of facial recognition amid backlash MORE (D-Miss.) sent a letter last week demanding information on whether Provost or acting Homeland Security Secretary Kevin McAleenan knew about the Facebook group, called “I’m 10-15.”

“This is why I have requested a full investigation into this matter,” Thompson said in a statement to The Intercept. “We need to know who in CBP leadership knew about these deplorable groups, when did they find out, and what action they took, if anything.

Sen. Ron WydenRonald (Ron) Lee WydenTrump drug pricing setbacks put pressure on Congress Hillicon Valley: Trump rails against ‘terrible bias’ at White House social media summit | Twitter hit by hour-long outage | Google admits workers listen to smart device recordings Overnight Health Care — Sponsored by Campaign for Tobacco-Free Kids — White House withdraws controversial rule to eliminate drug rebates | Grassley says deal on drug prices moving ‘very soon’ | Appeals court declines to halt Trump abortion referral ban MORE (D-Ore.) responded to The Intercept’s report by calling for Provost and other CBP leadership officials to resign “immediately.”

“This Facebook group is a disturbing look into the toxic culture of abuse, racism, and extremism among border patrol agents and leadership, and the border patrol chief Carla Provost was a member,” Wyden tweeted. “Provost along with the rest of border patrol leadership must resign immediately.”

ProPublica published the first report about the Facebook group for current and former Border Patrol agents, which is filled with derogatory posts targeting migrants and lawmakers.

Shortly after the news broke, Provost responded with a statement calling the posts “completely inappropriate.” 

“Any employees found to have violated our standards of conduct will be held accountable,” Provost said.

The agency said this month that it had informed its watchdog of the posts and initiated a probe into the situation.

Read more on the Facebook group here. 

 

AN OP-ED TO CHEW ON: The canceled Apollo missions to the moon would have been epic. 

 

A LIGHTER CLICK: @ this week.

 

NOTABLE LINKS FROM AROUND THE WEB: 

300 Californian cities secretly have access to Palantir. (Motherboard)

TikTok stars are preparing to take over the Internet. (The Atlantic)

‘No tech for ICE’: Protesters demand Amazon cut ties with federal immigration enforcement. (The Washington Post)

How the biggest decentralized social network is dealing with its Nazi problem. (The Verge)

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Far-right anti-Muslim activist Tommy Robinson sentenced to jail

Far-right British anti-immigration activist Tommy Robinson was sentenced to nine months in jail on Thursday for livestreaming the defendants in a 2018 trial, according to CNN.

Robinson, whose real name is Stephen Yaxley-Lennon, was found in contempt of court by two London judges for streaming footage of the defendants, who were accused of sexually exploiting underage girls, and revealing the men’s identities while the jury was still deliberating. The trial was subject to reporting restrictions to avoid prejudicing its outcome.

Robinson was initially sentenced to 13 months in jail, but successfully appealed his conviction.  The maximum sentence for contempt of court is two years.

Robinson, who wore a t-shirt reading “CONVICTED OF JOURNALISM” to his sentencing, had previously called on President TrumpDonald John TrumpControversial platform Gab slams White House for not inviting it to social media summit GOP senator: US should ‘reevaluate’ long-term relationship with Saudis Pelosi reportedly told Trump deputy: ‘What was your name, dear?’ MORE to grant him political asylum during an appearance on conspiracy theorist Alex Jones’s show.

“I feel like I’m two days away from being sentenced to death in the U.K. for journalism,” Robinson told Jones earlier this week. “I beg Donald Trump, I beg the American government, to look at my case. I need evacuation from this country because dark forces are at work.”

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“Posting material online that breaches reporting restrictions or risks prejudicing legal proceedings is a very serious matter and this is reflected in the Court’s decision today,” Attorney General Geoffrey Cox said in a statement.

The sentencing follows Robinson’s unsuccessful campaign for a European Parliament seat and his banning from Facebook in February over anti-Muslim posts the company said violated its rules against hate speech. Robinson has blamed his electoral loss on his lack of access to social media platforms.

Woman accusing Trump military nominee of sexual assault says she's willing to testify

The Army colonel leveling sexual assault allegations against the nominee to be the U.S. military’s No. 2 officer said she’s willing to testify under oath to senators on the details of the alleged incidents, The Washington Post reported.

The woman told the Post that she is prepared to testify before the Senate Armed Services Committee, preferably in a closed-door session, on her allegations against U.S. Strategic Command head Gen. John Hyten.

The committee is handling the confirmation process for Hyten, whom President TrumpDonald John TrumpControversial platform Gab slams White House for not inviting it to social media summit GOP senator: US should ‘reevaluate’ long-term relationship with Saudis Pelosi reportedly told Trump deputy: ‘What was your name, dear?’ MORE in April nominated to become the next vice chairman of the Joint Chiefs of Staff.

Defense officials on Wednesday briefed several committee members on an Air Force investigation that cleared Hyten of the allegations — the incidents contained in which were said to have taken place between 2017 and the start of 2018 — and have publicly surfaced after the accuser sent letters to lawmakers directly.

The allegations are likely to complicate Hyten’s confirmation, as senators are now questioning the military’s handling of the claims.

Committee member Sen. Tammy DuckworthLadda (Tammy) Tammy DuckworthVeterans groups hand out USS John McCain shirts on National Mall during Trump speech Overnight Defense: US to send 1K more troops to Mideast amid Iran tensions | Iran threatens to break limit on uranium production in 10 days | US accuses Iran of ‘nuclear blackmail’ | Details on key defense bill amendments Senators revive effort to create McCain human rights commission MORE (D-Ill.) told reporters that she is taking the woman’s allegations “very seriously.”

“They are deeply concerning to me. I would like the rest of the committee members to hear from her,” she said Thursday.

The Army colonel who has accused Hyten said the military justice system that handled her case was flawed and that the military should take further action regarding the alleged incidents.

The woman — who began working for Hyten in November 2016 but was relieved of her duties in 2018  — claims that he made “abusive sexual contact” with her more than six times, including in a hotel room during the Reagan National Defense Forum in California in December 2017. 

The officer also told The Associated Press that Hyten tried to kiss, hug and rub up against her while she was one of his aides, and that she repeatedly pushed him away and told him to stop.

After she rejected his advances he tried to ruin her military career, she told the AP. She told the Post that she was in the military for 28 years and did two tours in Afghanistan and two tours in Iraq, said that she didn’t speak to anyone about the incidents at the time due to fear of retaliation.

She was later told that Strategic Command was looking into what officials said was “toxic” leadership behavior, an allegation at odds with Hyten’s positive performance reviews for her, in which she was ranked as the top officer out of 71 on his staff, the AP reported.

She was given a letter of reprimand and removed from her Strategic Command role, after which she tried to retire.

Army officials rejected her retirement after they found that it was coerced, instead moving her to a senior job in the Washington area.

The Air Force in early April received the allegations — shortly after Hyten’s nomination was announced — and Hyten denies the claims.

The Air Force Office of Special Investigations then opened a “comprehensive investigation” on Hyten, who was cleared after “there was insufficient evidence to support any finding of misconduct,” Pentagon spokesperson Col. DeDe Halfhill said in a statement to The Hill.  

A senior Air Force official told the AP that investigators went through 10,000 pages of documents and interviewed more than 50 people but did not find evidence to support the allegations.

The official added that the investigation also found no evidence that the woman was lying.

The Air Force then referred the review to a court-martial convening authority, but neither decided to move forward with any charge or disciplinary action against Hyten based on the lack of evidence.

The allegations — though largely dismissed — could complicate Hyten’s confirmation.

Sen. Elizabeth WarrenElizabeth Ann WarrenSanders to join diabetes patients on trip to Canada to buy cheaper insulin George Conway renews ‘pathological narcissist’ attack on Trump in tweetstorm Trump teases social media summit before veering into attacks on press, Democratic challengers MORE (D-Mass.), and Duckworth on June 25 sent a letter to acting Defense Secretary Mark Esper that noted “serious concerns and questions” about the Pentagon’s handling of the investigation into Hyten.

Committee Chairman James Inhofe (R-Okla.) told Defense One that he is waiting for feedback from committee members before deciding whether the panel will look into the allegations on its own. 

Hyten’s confirmation hearing has not been scheduled, and the current vice chairman, Gen. Paul Selva, is set to retire on July 31.

House approves amendment to reverse transgender military ban

The House on Thursday approved an amendment to the annual defense policy bill aimed at reversing President TrumpDonald John TrumpControversial platform Gab slams White House for not inviting it to social media summit GOP senator: US should ‘reevaluate’ long-term relationship with Saudis Pelosi reportedly told Trump deputy: ‘What was your name, dear?’ MORE’s policy banning most transgender people from serving in the military.

The amendment to the National Defense Authorization Act (NDAA) would enshrine in law that any person who meets gender-neutral occupational standards can serve in the military regardless of race, color, national origin, religion or sex, including gender identity or sexual orientation.

“Over the last three years, 14,000 transgender service members have served openly and successfully,” said Rep. Jackie SpeierKaren (Jackie) Lorraine Jacqueline SpeierBerkeley professor warns deepfake technology being ‘weaponized’ against women Battle lines drawn for Mueller testimony Democratic lawmaker on Iran: ‘We are provoking them, we are taunting them’ MORE (D-Calif.), the sponsor of the amendment. “All five service chiefs affirmed they do not hamper lethality or cohesion. Malice and ignorance cannot stop us giving medical care to those brave enough to serve. We know what transgender service members bring to the fight; let them bring it.”

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The amendment passed 242-187, largely along party lines. Ten Republicans voted with all Democrats in support of the bill: Republican Reps. Susan BrooksSusan Wiant BrooksHeavy loss by female candidate in Republican NC runoff sparks shock Tim Scott leading effort to recruit minority conservative candidates Can new US Strategy on Women, Peace & Security give women a real seat at the table? Ask Afghan women MORE (Ind.), Brian FitzpatrickBrian K. FitzpatrickAdvocates urge help for homeless women veterans The four House Democrats who voted against the border funding bill Overnight Defense: House passes T spending package with defense funds | Senate set to vote on blocking Saudi arms sales | UN nominee defends climate change record MORE (Pa.), Trey HollingsworthJoseph (Trey) Albert HollingsworthOvernight Defense: House passes T spending package with defense funds | Senate set to vote on blocking Saudi arms sales | UN nominee defends climate change record House passes amendment to block funding for transgender troops ban Ocasio-Cortez, Cruz lobbying ban faces tough hurdles MORE (Ind.), Will HurdWilliam Ballard HurdFinally, GOP lawmakers prove conservation and conservatism go hand-in-hand Political world mourns death of Ross Perot Berkeley professor warns deepfake technology being ‘weaponized’ against women MORE (Texas), John KatkoJohn Michael KatkoBerkeley professor warns deepfake technology being ‘weaponized’ against women Overnight Defense: House passes T spending package with defense funds | Senate set to vote on blocking Saudi arms sales | UN nominee defends climate change record Senate panel advances bill to protect government devices against cyber threats MORE (N.Y.), Tom ReedThomas (Tom) W. ReedUnglamorous rules change helps a big bill pass GOP hopes dim on reclaiming House Overnight Defense: House passes T spending package with defense funds | Senate set to vote on blocking Saudi arms sales | UN nominee defends climate change record MORE (N.Y.), Elise StefanikElise Marie StefanikHeavy loss by female candidate in Republican NC runoff sparks shock Finally, GOP lawmakers prove conservation and conservatism go hand-in-hand Dem tensions snag defense bill MORE (N.Y.), Steve StiversSteven (Steve) Ernst StiversFed chief: Facebook crypto project poses ‘serious concerns’ for economy, consumers Republican lawmaker on decriminalizing marijuana: ‘Cat is already out of the bag on that’ The Hill’s Morning Report — US strikes approved against Iran pulled back MORE (Ohio), Fred UptonFrederick (Fred) Stephen UptonFinally, GOP lawmakers prove conservation and conservatism go hand-in-hand House passes bill to protect ‘Dreamers’ Thirty-four GOP members buck Trump on disaster bill MORE (Mich.) and Greg WaldenGregory (Greg) Paul WaldenTop GOP lawmakers allege House Democrats are less effective Hillicon Valley: House lawmakers reach deal on robocall bill | Laid-off journalists launch ads targeting tech giants | Apple seeks tariff exemptions | Facebook’s Libra invites scrutiny Bipartisan House lawmakers announce compromise anti-robocall bill MORE (Ore.).

The measure is one of several amendments Democrats have been touting to progressives as they seek to wrangle the votes to pass the NDAA without Republican support.

Progressives are concerned about the bill’s $733 billion price tag, but have indicated they could support the bill if certain amendments pass, particularly ones that would constrain Trump’s war powers. Votes on those amendments are expected later Thursday and Friday.

Democratic leaders have expressed confidence they have the votes to pass the NDAA, but members of the Progressive Caucus have said they remain undecided on the legislation pending the outcome of amendment votes.

Several LGBT and military groups and former officials have urged passage of the overall bill because of the Speier amendment.

“Passing a defense bill from the House that includes the values of inclusiveness and diversity is the best way to stand with those impacted by the administration’s policies,” the groups and officials wrote in a letter to lawmakers this week. “Failure to pass the NDAA will hamper the credibility of these arguments in future national security conversations and make it impossible to include pro-diversity language in the final, conferenced NDAA.”

Democrats have dubbed the measure the “Truman Amendment,” in honor of President Truman’s 1948 executive order racially integrating the military.

The Trump administration’s policy, which took effect in April, bans most transgender people from serving in the military unless they serve as their biological sex or were grandfathered in under the 2016 open-service policy.

The Trump administration and its allies deny the policy is a ban because of the carve-outs.

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“Being from Missouri, I think Harry Truman would be shocked that this would try to be named after him,” Rep. Vicky HartzlerVicky Jo HartzlerHouse approves amendment to reverse transgender military ban The House-passed bills that have ended up in the Senate ‘graveyard’ Dem proposal to ban Pentagon funds for border wall survives House panel votes MORE (R-Mo.) said. “I would remind my colleagues that the [Department of Defense] DOD policy is based on medical conditions, not an individual’s fluid and preferred gender identity. It’s based on deployability and readiness, not discrimination.”

Opponents of the policy argue it effectively is a ban akin to the defunct “don’t ask, don’t tell” policy that banned gay, lesbian and bisexual troops from serving openly.

Updated at 4:22 p.m.

Trump expected to announce he won't force citizenship question onto 2020 census

President TrumpDonald John TrumpControversial platform Gab slams White House for not inviting it to social media summit GOP senator: US should ‘reevaluate’ long-term relationship with Saudis Pelosi reportedly told Trump deputy: ‘What was your name, dear?’ MORE on Thursday is expected to issue an executive order directing the Commerce Department to collect citizenship information by other means than the U.S. census, according to an administration official.   

The move would effectively sideline the Trump administration’s bid to force the citizenship question onto the 2020 census, which the president abruptly announced after the Supreme Court ruled late last month against its inclusion.  

But administration officials have cautioned that the situation is fluid and the plans could change.

Trump lamented the high court’s ruling, telling a group of political allies at the White House that it’s “the craziest thing” census takers cannot ask about people’s citizenship.

“We’re going to talk a little bit about the fact that we’re not allowed to ask for whether or not somebody is a citizen on the census form. And I think we have a solution that will be good for a lot of people. Really good,” Trump said.

Trump tweeted Thursday morning that he would hold a news conference about “the Census and Citizenship,” triggering speculation he would announce the next step in his legal battle to include the question on next year’s census. Trump is scheduled to speak at 5 p.m. at the White House.

Officials did not say why the president apparently changed course, but the decision could close the book on the tumultuous legal fight over the citizenship question. It comes days after the Trump administration reversed its prior decision to print census forms without the question and said it would press ahead with their effort to include it. 

It’s also unclear how that data would be collected: The American Community Survey, which is sent out every year, already surveys a limited sample of the U.S. population about their citizenship. 

Legal experts warned that issuing an order forcing the question onto the census could have wide-reaching ramifications on the separation of powers within the federal government, as the presidential action would directly conflict with several court injunctions blocking the question’s inclusion.

The Supreme Court ruled late last month that the administration’s reason for adding the question was “contrived” and thus could not be included on census forms. 

Some Trump allies believe that an executive action from the president directing the Commerce Department, which oversees the census, to add the citizenship question would strengthen the administration’s legal case. 

But many experts were doubtful that such an order will hold up in court. Groups like the American Civil Liberties Union and the New York state attorney general had also promised to strike back at any action taken by Trump aimed at getting the question on the census.

The administration was guaranteed to face even further legal challenges over the citizenship question, dragging out the fight. And with deadlines looming to get census out on time, an extended court battle could have spelled doom for the question’s inclusion on the 2020 survey.

However, litigation surrounding the question continues to play out in a pair of federal courts. One federal judge in Maryland is weighing whether there was a discriminatory intent behind the question’s addition to the 2020 census, and another in New York is hearing arguments on whether to sanction Trump officials for allegedly making inaccurate representations about the question while under oath.

Updated: 4:45 p.m.

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Fed chief basks in bipartisan praise as lawmakers dismiss Trump attacks

Federal Reserve Chairman Jerome Powell found a safe harbor on Capitol Hill from President TrumpDonald John TrumpControversial platform Gab slams White House for not inviting it to social media summit GOP senator: US should ‘reevaluate’ long-term relationship with Saudis Pelosi reportedly told Trump deputy: ‘What was your name, dear?’ MORE’s blistering attacks on the central bank and its chief. 

In back-to-back appearances before congressional committees Wednesday and Thursday, Powell won praise from lawmakers in both parties amid Trump’s escalating criticism and threats over his job.

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Powell, a Republican first appointed to the Fed by former President Obama in 2012, enjoyed wide bipartisan support when Trump tapped him to lead the central bank in 2017. The president has since soured on his hand-picked Fed chairman, accusing Powell of restraining the economy and impeding his trade agenda. 

Republicans have been loathe to denounce Trump as he rips Powell and pressures the Fed to cut interest rates. While few GOP lawmakers endorse Trump’s attacks, most have accepted or defended the president’s right to criticize the central bank. 

But Powell himself enjoyed an impressive amount of bipartisan support at his Wednesday and Thursday appearances before the House Financial Services and Senate Banking committees respectively.

Lawmakers hailed Powell for leading the central bank with transparency and integrity, fending off Trump’s claims that “we don’t have a Fed that knows what they’re doing.”

“You’ve done an outstanding job,” said Sen. Pat ToomeyPatrick (Pat) Joseph ToomeyNSA improperly collected US phone records in October, new documents show Overnight Defense: Pick for South Korean envoy splits with Trump on nuclear threat | McCain blasts move to suspend Korean military exercises | White House defends Trump salute of North Korean general WH backpedals on Trump’s ‘due process’ remark on guns MORE (R-Pa.), one of the fiercest critics of the Fed’s post-crisis monetary policy. “You were able to normalize from this very strange experiment, and here we are with some terrific consequences.”

Sen. Bob MenendezRobert (Bob) MenendezSenate passes .5B border bill, setting up fight with House Senate to vote on blocking Trump’s Saudi arms deal as soon as this week There is a severe physician shortage and it will only worsen MORE (N.J.), a senior Banking Committee Democrat, praised Powell for rebuffing Trump’s repeated insistence that he can fire the chairman, even though legal experts and Fed watchers disagree. 

“I don’t always think the Fed gets things right. But our system is infinitely superior to one where the president dictates interest rates, especially when we’re heading into elections,” Menendez said. “I think I speak for all of my colleagues and I say that we applaud your efforts to keep the Federal Reserve as an independent and nonpartisan institution.”

Powell faces a careful balancing act as he and the Fed seek to extended a record-breaking stretch of economic growth: making the case for a potential interest rate cut while asserting the bank’s independence from Trump.

Trump has called on the Fed to cut interest rates and bashed the bank for hiking them four times in 2018. 

“We’re paying a lot of interest and it’s unnecessary, but we don’t have a Fed that knows what they’re doing,” Trump said Friday. 

Powell has largely waived off Trump’s attacks while insisting he would not vacate the chairmanship if the president tried to fire him or demote him. His resilience won him accolades from lawmakers, even those who spar with Powell on policy.

Rep. Maxine WatersMaxine Moore WatersHillicon Valley: Trump officials to investigate French tax on tech giants | Fed chair raises concerns about Facebook’s crypto project | FCC blocks part of San Francisco law on broadband competition | House members warn of disinformation ‘battle’ Fed chief: Facebook crypto project poses ‘serious concerns’ for economy, consumers Fed chief strongly hints at July rate cut in House testimony MORE (D-Calif.), chairwoman of Financial Services Committee, set the tone Wednesday when she asked Powell what he would do if Trump told him to step down.

After Powell responded, “Of course, I would not do that,” Waters jokingly replied, “I can’t hear you,” sparking laughter in the committee room and drawing a grin from the often stoic Fed chairman.

“The law clearly gives me a four-year term and I fully intended to serve it,” Powell added.

“I hope everybody heard that,” Waters responded. 

The next day, Toomey praised Powell for saying he won’t leave the Fed until his term runs out, even as Trump floats firing him.

“I’m glad to hear that that’s your conclusion, in part because I do think it’s important that the Fed remain insulated from political pressure,” Toomey said before praising Powell’s efforts to bring near-zero interest rates toward a neutral level.

Sen. Mark WarnerMark Robert WarnerRepublicans say they’re satisfied with 2020 election security after classified briefings Senators question DHS on North Carolina voting equipment malfunctions Former GOP rep launches Senate campaign in Virginia MORE (D-Va.), a leading Banking panel moderate, said he was “proud” to be one of the 84 senators who voted to confirm Powell as chairman in January 2018.

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And Sen. Richard ShelbyRichard Craig ShelbyThe Hill’s Morning Report – 2020 jitters hit both parties in the Senate GOP frets over nightmare scenario for Senate primaries High anxiety hits Senate over raising debt ceiling MORE (R-Ala.) praised Powell for his “work to keep the Federal Reserve independent of both parties.”

“We salute you for that,” Shelby added. 

Powell’s bipartisan appeal is largely due to his frequent visits to Capitol Hill and his open lines of communication. Lawmakers often say Powell meets with them far more frequently than his predecessors did, and analyses of his schedules back up that conclusion.

Powell can often be spotted darting between meetings in the House and Senate, accompanied by a phalanx of security and a thick binder. A former Treasury Department official, Powell is familiar with garnering congressional support and pledged to wear Capitol carpets thin by meeting with lawmakers.

Powell’s moderate stances and unique position as an appointee of both Obama and Trump have helped endear him to a wide swath of lawmakers. 

Powell voted lockstep with his Democratic predecessor, former Fed Chair Janet YellenJanet Louise YellenNew bill will get the labor market running on all cylinders Powell told Congress Fed is preparing for economic ‘damage’ from climate change Senate needs to stand up to Trump’s Nixonian view of the Fed MORE, to maintain low interest rates far later than many Republicans would have preferred. But he also supports easing some Dodd-Frank financial regulations, a long-time Republican goal fiercely opposed by many Democrats.

“You made a commitment to me that you would realize this job and role required an independent Fed chair that would not be subject to political lobbying and haranguing,” Warner said. 

“I think you’ve stuck to your guns so far, but I want you to keep sticking to your guns.”

Boris Johnson: 'I can't believe they're trying to blame me' for ambassador's ouster

Boris Johnson, who will likely become the United Kingdom’s next prime minister soon, denied on Wednesday that he played a role in the resignation of the British ambassador to the U.S., who stepped down after the leak of diplomatic cables in which he was harshly critical of the Trump administration.

Johnson told The Sun it was “bizarre” he was being blamed for the resignation of Kim Darroch, who left his post after President TrumpDonald John TrumpControversial platform Gab slams White House for not inviting it to social media summit GOP senator: US should ‘reevaluate’ long-term relationship with Saudis Pelosi reportedly told Trump deputy: ‘What was your name, dear?’ MORE publicly bashed him as a “very stupid guy” and “pompous fool,” saying the White House would no longer work with him.

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Several British politicians from both the governing and opposition parties have accused Johnson of not defending Darroch adequately against Trump’s barbs.

Johnson, one of two Conservative Party leaders vying to succeed Prime Minister Theresa MayTheresa Mary MayThe Hill’s Morning Report – 2020 jitters hit both parties in the Senate Lindsey Graham blames media for ouster of British ambassador Theresa May on outgoing UK Ambassador to US: ‘We owe him an enormous debt of gratitude’ MORE, stopped short of condemning the criticism during a televised debate with Foreign Minister Jeremy Hunt, instead stressing his good relations with the White House and the importance of the trans-Atlantic relationship.

Hunt, by contrast, called Trump’s attacks “disrespectful” and pledged to keep Darroch on as ambassador should he take over at 10 Downing Street.

Darroch resigned hours after Johnson’s comments.

“I can’t believe they’re trying to blame me for this,” Johnson told The Sun. “I’m a great supporter of Kim’s. I worked very well with him for years.”

Conservative Member of Parliament Nicholas Soames, however, said Johnson had “hung Kim Darroch out to dry … and I was ashamed to see it,” according to The Associated Press.

Labour Party official Liz McInnes called Johnson’s behavior “the most craven and despicable act of cowardice I have seen from any candidate for public office, let alone someone running to be prime minister,” the AP reported.

The Labour Party itself is calling for May to appoint a new ambassador before leaving office later this month so that Johnson does not have authority over the decision.

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California lawmakers approve legislation for $21 billion wildfire fund

California legislators on Thursday approved a bill creating a $21 billion fund for state utilities to pay for claims related to wildfires started by their equipment, according to Reuters.

In January, Pacific Gas & Electric Corp. filed for Chapter 11 protection as it faced wildfire-related liabilities of more than $30 billion.

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In June, California Gov. Gavin NewsomGavin Christopher NewsomCalifornia legislature passes bill to protect sex workers’ rights California governor signs legislation extending health care to undocumented immigrants California expected to enact deadly force restrictions for law enforcement MORE (D) proposed creating such a fund after S&P Global ratings said the state’s two other primary investor-owned power providers, Southern California Edison and San Diego Gas & Electric, were in danger of having their ratings lowered, according to the news service.

To avoid a devaluation on or around July 12, the ratings agency called on state leaders to take “concrete actions” to reduce the utility providers’ credit risks.

Newsom praised the legislature for the bill’s passage in a statement Thursday.

“I want to thank the Legislature for taking thoughtful and decisive action to move our state toward a safer, affordable and reliable energy future, provide certainty for wildfire victims and continue California’s progress toward meeting our clean energy goals,” Newsom said.

“The rise in catastrophic wildfires fueled by climate change is a direct threat to Californians,” he added. “Strengthening our state’s wildfire prevention, preparedness and mitigation efforts will continue to be a top priority for my administration and our work with the Legislature.”

 

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Children urge Congress to renew funds for diabetes research

More than 160 children with type 1 diabetes made a personal plea for lawmakers to approve more funding to research the disease at a hearing Wednesday before the Senate Special Committee on Aging.

The children were dressed in blue shirts and Committee Chairwoman Susan CollinsSusan Margaret CollinsDemocratic challenger to McConnell raises .5 million on first day of campaign Acosta on shaky ground as GOP support wavers Democrats look to demonize GOP leader MORE (R-Maine) also sported a light blue jacket in solidarity.

“Your passion and hope for a cure are contagious,” Collins said. “I’m inspired by that sea of blue that is out there.”

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The hearing was the culmination of the JDRF’s biennial Children’s Congress, which brings children dealing with the disease, their family members and fellow advocates from all 50 states to Washington to raise awareness and push lawmakers to boost support for those with type 1 diabetes.

A nonprofit that funds type 1 diabetes research, JDRF has urged lawmakers to extend funding for the Special Diabetes Program. The program provides $150 million annually to the National Institutes of Health for type 1 diabetes research and expires this September.

At the hearing, Aaron Kowalski, the CEO of JDRF, said the bipartisan support for the Special Diabetes Program is “transforming lives and bringing us closer to our ultimate goal: cures for type 1 diabetes.” 

Dr. Griffin P. Rodgers, an official from the National Institutes of Health, said that the funding from the Special Diabetes Program has provided essential support for the development of breakthrough technologies in the field, including the artificial pancreas and cutting-edge blood glucose monitors. 

These advancements have changed the lives of people living with the condition, many of whom shared their experiences with the committee.

Emmy- and Tony-nominated actor Victor Garber told the senators that when he was diagnosed with the disease at age 11, he had to boil syringes to sterilize them and test his blood glucose levels with urine samples.

He said that the new technologies funded by the Special Diabetes Program had made managing the disease much easier today.

“Living with type 1 diabetes today is vastly different from when I was a teenager,” Garber said. 

The actor also called on lawmakers to address skyrocketing prices for insulin, an essential hormone for daily management of the condition.

“No mother in the U.S. should lose their son to insulin rationing, and no father should have to rely on buying insulin from Canada to keep his child alive,” said Garber. 

From 2012 to 2016, the price of the drug has nearly doubled leading some patients to ration or buy the drug in Canada where insulin prices can be 90 percent cheaper than in the US.    

Committee ranking member Bob CaseyRobert (Bob) Patrick CaseyTaking action to stop the sabotage and expand access to health care for Americans Democrats leery of Sanders plan to cancel student loan debt Head of Pennsylvania GOP resigns over alleged explicit texts MORE Jr. (D-Pa.) and Collins indicated that they are both working to solve high insulin prices.

Casey said lawmakers understood the difficulties posed by high insulin costs for patients. He said the high costs are “like a bag of rocks thrown on your shoulders every day.” 

And the lawmakers on the panel made it clear that the support for renewing the Special Diabetes Program was bipartisan and broad.

Sixty-eight senators from both sides of the aisle signed a letter authored by Collins and Sen. Jeanne ShaheenCynthia (Jeanne) Jeanne ShaheenPoliticians cheer USWNT over defeating England, qualifying for World Cup final Democracy reform subtly defines the presidential primary Can new US Strategy on Women, Peace & Security give women a real seat at the table? Ask Afghan women MORE (D-N.H.) to Senate leadership in support of the program.

And lawmakers are acting. Last week, the Senate Health Committee approved a five-year extension of the program. 

The most impassioned pleas for extending funding, though, came from two of the children at the hearing

Ruby Anderson, 9, from Yarmouth, Maine, said she was diagnosed with type 1 diabetes when she was 3 years old and can’t remember what it is like to live without the condition. She was hopeful that more research could help find a cure. 

Ruby told the committee that when she grows up, she wants to be a scientist.

“If they haven’t found a cure for diabetes by then, I will,” she vowed.

UK health service to use Amazon Alexa to give medical advice

The United Kingdom’s health care service, the NHS, is partnering with Amazon’s voice assistant Alexa to deliver medical advice to users from the service’s official website.

The NHS announced Wednesday that the “technology has the potential to reduce the pressure” on doctors, citing the increased use of digital voice assistants for online searches.

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“We want to empower every patient to take better control of their healthcare and technology like this is a great example of how people can access reliable, world-leading NHS advice from the comfort of their home, reducing the pressure on our hardworking GPs and pharmacists,” Secretary of State for Health and Social Care Matt Hancock said in a statement.

The move has raised concerns from privacy experts and advocates concerned about the implications of distributing medical information via digital assistant. 

“Amazon is a company with a worrying track record when it comes to the way they handle their users’ data,” Eva Blum-Dumontet, a researcher at Privacy International, told The Associated Press.

“Our medical information is often the most sensitive data there is about us and a lot can be inferred from the questions we ask and the searches we make when we have health concerns.”

In a letter to Sen. Christopher CoonsChristopher (Chris) Andrew CoonsGOP chairman introduces bill to force ‘comprehensive review’ of U.S.-Saudi relationship UK health service to use Amazon Alexa to give medical advice Sunday shows – Amash, immigration dominate MORE (D-Conn.) earlier this month, Amazon revealed it keeps voice recordings and transcripts to help train its AI until users manually delete them.

Amazon said it erases transcripts “from all of Alexa’s primary storage systems” when users manually delete voice recordings. 

An Amazon spokesperson told The Hill that information related to medical questions will not be shared with third parties or used to create health profiles of users.

 

–Updated at 12:35 p.m.