Politics

By Daniel Trotta

(Reuters) – The writers’ group PEN America, authors and parents on Wednesday sued a Florida school district over its book bans, alleging educators violated the First Amendment right to free speech and their own policies in removing titles from school libraries.

The Escambia County School District and School Board have targeted books dealing with race and LGBTQ issues for removal, depriving students of access to a wide range of viewpoints, according to the lawsuit filed in U.S. District Court for the Northern District of Florida.

A spokesperson for the school district said officials were unable to comment on pending legislation.

Book bans have been on the rise across the United States, PEN says, affecting 874 titles in the first half of the 2022-23 school year. The bans are most prevalent in Florida, Texas, Missouri, Utah and South Carolina and overwhelmingly target stories by and about minorities and LGBTQ people, PEN says.

The Escambia County lawsuit seeks the restoration of removed books back to school libraries, and court costs.

“The School District has been automatically restricting access to any book challenged on the ground that it contains ‘sexual’ content, regardless of the nature of that content or anything else about the book,” the lawsuit alleges.

Banned works include Kurt Vonnegut’s “Slaughterhouse-Five,” a picture book “Draw Me A Star” by famed children’s author Eric Carle, and “The Kite Runner” by Khaled Hosseini, plus others that recognize the existence of same-sex relationships, the lawsuit says.

“Of the 197 books targeted for removal in the district, 154 books remain restricted as of this filing, approximately 70%,” the lawsuit says.

The lawsuit singles out the activism of Northview High School teacher Vickie Baggett, but does not name her as a defendant, for her efforts to remove numerous titles.

Baggett did not immediately respond to a Reuters request for comment.

(Reporting by Daniel Trotta; Editing by Chris Reese)

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WASHINGTON (Reuters) – Montana Governor Greg Gianforte on Wednesday signed legislation to ban Chinese-owned TikTok from operating in the state to “protect Montanans” from alleged Chinese surveillance, making it the first U.S. state to ban the popular short video app.

Here is a detailed list of U.S. allegations against the company and its parent, Bytedance.

-TikTok management is beholden to the Chinese government

FBI Director Chris Wray said in November that TikTok poses a national security risk, adding that Chinese companies are required to essentially “do whatever the Chinese government wants them to in terms of sharing information or serving as a tool of the Chinese government.”

Members of Congress in March complained that the Chinese government has a “golden share” in ByteDance, giving it power over TikTok. TikTok has said “an entity affiliated with the Chinese government owns 1% of a ByteDance subsidiary, Douyin Information Service,” and says the holding “has no bearing on ByteDance’s global operations outside of China, including TikTok.”

-TikTok could be used to influence Americans

The FBI’s Wray has also said U.S. operations of TikTok raise national security concerns because the Chinese government could harness the video-sharing app to influence users or control their devices.

Risks include “the possibility that the Chinese government could use [TikTok] to control data collection on millions of users or control the recommendation algorithm, which could be used for influence operations,” Wray told U.S. lawmakers.

National Security Agency Director Paul Nakasone said in March he was worried about the data TikTok collects, the algorithm used to disperse information to users, and “the control of who has the algorithm.”

He asserted the TikTok platform could enable sweeping influence operations because TikTok could proactively influence users and could also “turn off the message.”

TikTok says it “does not permit any government to influence or change its recommendation model.”

-TikTok will hand American’s data over to Chinese government officials

Lawmakers have alleged that the Chinese government, under a 2017 National Intelligence law, can force ByteDance to share TikTok user data. TikTok argues that because it is incorporated in California and Delaware, it is subject to U.S. laws and regulations.

TikTok’s chief executive has said the company has never, and would never, share U.S. user data with the Chinese government

-TikTok use harms children’s mental health

In March 2022 eight states, including California and Massachusetts, launched a probe into whether TikTok causes physical or mental health harm to young people and what the company knew about its role in those harms.

The investigation focuses on how TikTok boosts young user engagement, including allegedly increasing the duration of time spent on the platform and how often it is used.

TikTok says it has taken numerous steps “to help ensure that teens under 18 have a safe and enjoyable experience on the app, and many of these measures impose restrictions that don’t exist on comparable platforms.”

-TikTok spies on journalists

In December, ByteDance said some employees improperly accessed TikTok user data of two journalists. ByteDance employees accessed the data as part of an unsuccessful effort to investigate leaks of company information earlier this year, and were aiming to identify potential connections between two journalists, a former BuzzFeed reporter and a Financial Times reporter, and company employees.

A person briefed on the matter told Reuters that four ByteDance employees who were involved in the incident were fired, including two in China and two in the United States. Company officials said they were taking additional steps to protect user data.

(Reporting by Chris Sanders; Editing by Leslie Adler)

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By Sarah N. Lynch

WASHINGTON (Reuters) – Massachusetts U.S. Attorney Rachael Rollins improperly used her position at the Justice Department to try to influence the outcome of a local district attorney election by leaking negative and non-public information about a political rival, the U.S. Justice Department’s internal watchdog said on Wednesday.

(Reporting by Sarah N. Lynch and Rami Ayyub)

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By Sarah N. Lynch

WASHINGTON (Reuters) -Massachusetts U.S. Attorney Rachael Rollins improperly used her position at the Justice Department to try to influence the outcome of a local district attorney election by leaking negative and non-public information about a political rival, the department’s internal watchdog said on Wednesday.

That conclusion was among a litany of ethics violations uncovered by Justice Department Inspector General Michael Horowitz in a scathing 161-page investigative report released a day after Rollins announced she would resign her post by Friday.

The report uncovered a host of issues, from Rollins attending a Democratic political fundraiser in her capacity as the top federal prosecutor in Massachusetts to accusations that she “knowingly and willfully made a false statement” during her interview with the inspector general office.

Separately, the independent U.S. Office of Special Counsel released its own report, finding Rollins had “willfully violated” the Hatch Act – a law that places limits on the political activities of federal employees.

Rollins, the first Black woman to serve as the U.S. attorney in Massachusetts, was appointed by President Joe Biden. She is a prominent figure in the “progressive prosecutor” movement that supports policies designed to eliminate racial disparities in the justice system.

(Reporting by Sarah N. Lynch; Additional reporting by Rami Ayyub; Editing by Will Dunham)

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By Daniel Trotta

(Reuters) – Florida Governor Ron DeSantis on Wednesday signed into law a bill that bans gender-affirming medical care such as puberty blockers or hormone therapy for transgender youth, and also enacts obstacles for adults to access treatment.

Taking effect in the third most populous U.S. state, the law escalates a Republican political strategy to pursue bills restricting transgender rights. More than 500 bills affecting LGBTQ matters have been proposed across the country and at least 48 have been enacted, according to the Human Rights Campaign.

Such bills were once mostly limited to regulating changing rooms and women’s sports but have expanded to limiting healthcare access even for transgender adults. In some cases legislation has sought to charge parents and doctors with child abuse if they provide treatment to transgender youth.

In addition to Florida, at least 14 other states have banned treatments for transgender youth, although many face legal challenges in the courts.

Many Republican supporters of the bills distrust the prevailing medical consensus, which endorses gender-affirming care and in some cases considers it life-saving. Instead, opponents of transgender healthcare claim it is dangerous and experimental, with some labeling the measures as chemical castration or child abuse.

The Florida law, known as Senate Bill 254, goes further by requiring transgender adults to obtain written consent on a form adopted by the Board of Medicine and Board of Osteopathic Medicine – two oversight boards whose members are appointed by the governor and have already taken steps to restrict transgender care under DeSantis.

In addition, the new Florida law, which takes effect immediately, grants Florida courts jurisdiction in child custody battles over transgender kids when a Florida parent opposes treatment that is being pursued under an out-of-state parent.

DeSantis, who is expected to launch a bid for the 2024 Republican presidential nomination in the coming weeks, has staked part of his political future on cultural issues surrounding LGBTQ rights.

The World Professional Association for Transgender Health (WPATH) criticized the bill after it passed the legislature, opposing government interference into the doctor-patient relationship.

“Florida’s bill has created a chilling effect on the medical community by inserting politics into health care. This ban threatens health care providers with criminal penalties simply for doing their jobs, and will make it even harder for transgender and gender diverse people to obtain essential health care,” Marci Bowers, the association’s president, said in a statement.

(Reporting by Daniel Trotta)

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By Susan Heavey and Doina Chiacu

WASHINGTON (Reuters) -President Joe Biden will continue talks with congressional leaders on the United States’ debt limit later this week, the White House said on Wednesday, as U.S. House Speaker Kevin McCarthy vowed to avoid a default.

“I think at the end of the day, we do not have a debt default,” the Republican congressman said in an interview with CNBC.

“The thing I’m confident about is now we have a structure to find a way to come to a conclusion. The timeline is very tight. But we’re going to make sure we’re in the room and get this done,” he added.

Biden, who leaves on Wednesday for the Group of Seven summit of world leaders Friday through Sunday in Japan, will speak with top lawmakers by telephone while attending the meetings, and will meet with top lawmakers again on his return, White House spokeswoman Karine Jean-Pierre said in television interviews.

“He’s optimistic that we’ll get to a reasonable, bipartisan budget deal that can get to his desk next week that he can sign,” Jean-Pierre told CNN, adding that daily staff-level talks are expected to continue this week.

The comments came the day after Biden and the House’s top Republican met for about an hour at the White House with Senate Majority Leader Chuck Schumer, Senate Republican leader Mitch McConnell and House Democratic leader Hakeem Jeffries.

Financial markets appeared to be buoyed by Tuesday’s discussions as McCarthy joined McConnell and the White House in pledging the U.S. would not fail to pay its debt obligations.

U.S. stock indexes opened higher on Wednesday, in part amid cautious optimism among investors as talks continued. The U.S. Treasury has said it could start running out of funds as early as June 1 to pay the government’s bills — a move economists fear will trigger a recession.

After Tuesday’s meeting, McConnell told reporters: “We know we’re not going to default.” Biden called the discussion productive.

Jean-Pierre, too, stood by the White House’s stance that the country would not default, and told CNN that Biden’s decision to cut short his Asia trip sends “the other message too, is that … America does not default on its debt.”

Negotiators are aiming to hammer out an agreement before Biden’s scheduled return to Washington on Sunday. Congress would then have to take swift action before Treasury’s June 1 deadline hits.

WORK REQUIREMENTS

Negotiations are continuing over the longevity of any deal, work requirements for aid programs for the poor, including food subsidies, and spending caps.

Asked on CNN if Biden wanted the debt limit agreement to last through 2025, Jean-Pierre declined to answer.

She also did not give details on negotiations over expanding work requirements for the two programs that provide food and cash aid to low-income families, which Republicans want to see included as part of a deal.

“The Republican proposals – they want to cut healthcare, they want to increase poverty, and it’s not going to save much money,” she told CNN, adding that daily staff talks between both sides were expected to continue.

House Democratic leader Jeffries said it was “unreasonable” to include work requirements in any deal to pay debts the nation has already incurred but that they could be discussed as part of other legislation.

“I’m optimistic that common ground can be found in the next week or so,” he told CNBC.

In a statement, Jeffries said he was hopeful a bipartisan deal would be reached but that House Democrats would file a “discharge petition” in case it was needed to bypass regular chamber procedures to act on the debt limit and avoid a default.

McCarthy, whose fellow Republicans control the House, on CNBC defended conservatives’ call for work requirements, saying they would help the economy and boost the workforce, and vowed to exclude any discussion of taxes.

Raising taxes on the wealthy and companies to help pay for programs for other Americans is a key part of Biden’s 2024 budget, and the president on Tuesday said he was disappointed that Republicans will not consider ways to raise revenue.

(Reporting by Susan Heavey, Doina Chiacu and Richard Cowan; Editing by Andrew Heavens and Jonathan Oatis)

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By David Lawder

WASHINGTON (Reuters) -The Internal Revenue Service on Tuesday said it would launch a free, government-provided direct tax filing option next year, which could lead to the full-scale launch of an IRS filing system that would compete with private tax preparers.

The IRS said in an exploratory report to Congress that 72% of American taxpayers surveyed said they were “very interested in” or “somewhat interested in” using a government tool to electronically file their tax returns.

The agency estimated that a new direct filing system would cost between $64.3 million and $248.9 million a year to operate, depending on the complexity of returns accepted and the number of taxpayers using the system.

The size, scope and complexity of the pilot program, to be available in the 2024 tax filing season, has yet to be determined, IRS Commissioner Danny Werfel told reporters, adding that Treasury Secretary Janet Yellen directed the IRS to launch the pilot after reviewing the report.

The $15 million study was mandated by the climate-focused Inflation Reduction Act, which was backed by only Democratic lawmakers and provided $80 billion over 10 years for the IRS to beef up enforcement, modernize its technology, improve customer service and rebuild its workforce.

PREPARER, FILER, AUDITOR

Plans for a free filing system have been criticized by Republicans in Congress as redundant because of free options for filing simple returns provided by private firms, including H&R Block and TurboTax software maker Intuit Inc. Shares of H&R Block closed down 3.1% and Intuit ended down 1.1% on Tuesday.

Republicans have sought to rescind the $80 billion in IRS investments as part of debt ceiling negotiations.

House of Representatives Ways and Means Committee Chair Jason Smith, a Republican, blasted the e-filing study as another step in the Biden administration’s efforts to “supercharge” the IRS to harass taxpayers.

“Americans will be powerless when the IRS completely controls the tax filing process from start to finish,” Smith said in a statement.

But Laurel Blatchford, the Treasury’s chief implementation officer for the Inflation Reduction Act, said a free direct filing option could “potentially save taxpayers billions of dollars annually,” because it may cost the IRS less than $10 per tax return filed, compared with about $40 now paid by taxpayers for simple returns handled by private firms.

Werfel noted that all filing options would continue, including free e-file options from private firms and non-profit tax advocacy services, paid filing by tax preparers, and free paper filing to the IRS.

Funding for a full-scale IRS direct file system has not been determined, but would need to be determined by the Treasury and Congress, Werfel said, but could come from the $80 billion in new funding designated for systems modernization.

(Reporting by David Lawder; Editing by Paul Simao, Aurora Ellis and Leslie Adler)

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By Patricia Zengerle, Idrees Ali and Michael Martina

WASHINGTON (Reuters) -Three of U.S. President Joe Biden’s top aides warned on Tuesday that budget cuts would undermine the country’s ability to compete militarily, diplomatically and economically with China, a rare joint appearance in Congress underscoring Washington’s focus on competing with the Asian power.

Secretary of State Antony Blinken, Secretary of Defense Lloyd Austin and Secretary of Commerce Gina Raimondo appeared at a Senate Appropriations Committee hearing on Biden’s budget request and the U.S.-China relationship amid intense negotiations on a deal to raise the $31.4 trillion debt ceiling and avert an economically catastrophic default.

Cabinet secretaries rarely testify together at public hearings, but both Democratic and Republican parties have been vying to show that they view the Chinese Communist government as the greatest challenge Washington faces.

Senator Patty Murray, chairperson of the Appropriations panel, pushed back against Republican calls for spending cuts in exchange for agreeing to raise the debt ceiling.

“Let’s be clear: China isn’t debating whether to pay its debts, or wreck its economy. China isn’t debating whether to invest in its future, or cut and cap the investments that keep it competitive,” said Murray, a Democrat.

Republicans argue that current spending levels are unsustainable, threatening long-term economic health if deficits are not pared back.

The U.S. government may default on some debts as early as June 1 unless Congress votes to lift the debt ceiling, and economists fear the country will slide into a recession.

LEGISLATION, CLOSER TIES

With strong support from both Democrats and Republicans, Congress last year passed – and Biden signed into law – the sweeping “Chips and Science Act” authorizing hundreds of billions of dollars to boost competition with Beijing in semiconductors and other technology.

Lawmakers promise more legislation. Two weeks ago Senate Democrats announced that they would write a new bill to stave off competition from China, as Biden’s administration has sought to return to high-level engagement with Beijing after an alleged spy balloon incident that caused a pause in relations this year.

Members of Congress are looking at deterring China from initiating a conflict with Taiwan, improving ties with third countries to ward off Chinese competition, tightening rules to block U.S. capital from going to Chinese companies and limiting the flow of U.S. technology to China.

Asked if American companies should be encouraged to move factories out of China, Raimondo said there are increased risks. “In fact, you’re seeing in recent months Chinese officials without notice raiding American companies. So I think every company has to make these decisions,” she said.

The issue shot to focus in March when Chinese authorities raided the office of U.S. corporate due diligence firm Mintz Group in Beijing and detained five local staff.

China, which views democratically governed Taiwan as its own territory, has increased military pressure on the island over the past three years as it tries to force Taipei to accept its sovereignty claim.

Austin said Washington would soon provide “significant” additional military assistance for Taiwan via an authority Congress voted to give Biden last year, but did not elaborate.

Reuters reported this month that the Biden administration plans to send $500 million worth of weapons aid to Taiwan using the authority.

(Reporting by Patricia Zengerle; additional reporting by Doina Chiacu, Michael Martina and Idrees Ali; Editing by Howard Goller, Lisa Shumaker and Grant McCool)

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By Nandita Bose and David Morgan

WASHINGTON (Reuters) -Democratic President Joe Biden and top congressional Republican Kevin McCarthy edged closer to a deal to avoid a looming U.S. debt default Tuesday, as the threat of an economic nightmare prompted Biden to cut short an Asia trip this week.

After an hour of talks, McCarthy, the speaker of the House of Representatives, told reporters the two sides remained far apart on an agreement to lift the debt ceiling. But he said, “It is possible to get a deal by the end of the week. It’s not that difficult to get to an agreement.”

Democrats were not as positive about a quick time frame, but the White House called the meetings “productive and direct.” Biden said the leaders reached “an overwhelming consensus … that defaulting on the debt is simply not an option. Our economy would fall into recession.”

“There’s still work to do,” Biden said at a White House event honoring Jewish Americans, saying the parties were “on a path forward to make sure that America does not default on its debt for the first time.”

Biden said he was disappointed that Republicans will not consider ways to raise revenue. Raising taxes on the wealthy and companies to help pay for programs for other Americans is a key part of Biden’s 2024 budget.

Biden met for about an hour with McCarthy, Senate Majority Leader Chuck Schumer, Senate Republican leader Mitch McConnell and House Democratic leader Hakeem Jeffries after their aides met over the weekend to try to strike a deal.

Republicans have refused to vote to lift the debt ceiling past its $31.3 trillion limit unless Biden and his Democrats agree to spending cuts in the federal budget. However, McConnell said after the meeting, “We know we’re not going to default.”

The U.S. government may default on some debts as early as June 1 unless Congress votes to lift the debt ceiling, and economists fear the country will slide into a recession.

Biden is “optimistic that there is a path to a responsible, bipartisan budget agreement if both sides negotiate in good faith and recognize that neither side will get everything it wants,” the White House said.

Biden and congressional leaders’ staff have met several times over the past week on the issue. Going forward, the talks will be narrowed for more engagement between House Republicans and the White House, McCarthy said.

Biden, who departs for Japan on Wednesday, said he will speak regularly with congressional leaders by phone, and the White House said he would meet with them upon his return.

White House adviser Steve Ricchetti, budget director Shalanda Young and legislative adviser Louisa Terrell will lead discussions for the administration, joining Republican Representative Garrett Graves.

Rohit Kumar, a former senior McConnell aide who is now co-leader of PwC’s national tax office in Washington, said such direct negotiations had a proven track record. “It frees up the administration to make some necessary concessions that won’t be popular with House and Senate Democrats but also won’t imperil passage of an agreement,” he said.

Neil Bradley, chief policy officer at the U.S. Chamber of Commerce, welcomed the narrower scope and structure of the talks. “We believe there is a path forward on a bipartisan deal that lifts the debt limit and makes important reforms to improve our nation’s fiscal health,” he said.

Continued uncertainty around the debt ceiling prompted Biden to skip stops in Papua New Guinea and Australia after he attends a Group of Seven summit of the world’s richest countries in Hiroshima, Japan.

“We’ve got a lot of work to do in a short amount of time,” McCarthy told reporters, saying the Oval Office session had set the stage for future conversations.

WORK REQUIREMENTS

Ahead of the meeting, sources said Biden and McCarthy’s aides had discussed the requirements for two key programs that provide food and cash aid to families.

Expanding the work requirements has been a key demand of Republicans, who are also pushing for spending cuts in exchange for their votes to raise the debt limit. McCarthy told reporters on Tuesday that his party, which controls the House by a 222-213 margin, would only agree to a deal that cuts spending.

“We can raise the debt ceiling if we limit what we’re going to spend in the future,” McCarthy told reporters.

Both parties agree on the need for urgent action.

In the past week, staffs for both sides have discussed a range of issues. In addition to work requirements for some benefit programs for low-income Americans, spending caps and changes to energy permitting have been proposed in exchange for votes to lift the limit, according to people briefed on the talks.

The sources, who spoke on condition of anonymity to reveal details about closed-door negotiations, said the work requirement talks focus on the Supplemental Nutrition Assistance Program (SNAP), previously known as food stamps, and the Temporary Assistance for Needy Families program.

Biden alluded to the negotiations in public remarks over the weekend, saying he would not consider such a move for the Medicaid health program for low-income Americans.

PREVIOUS DOWNGRADE

A similar 2011 standoff over the debt limit led to a historic downgrade of the U.S. credit rating, sparking a sell-off in stocks and pushing the government’s borrowing costs higher.

The current deadlock has rattled investors, sending the cost of insuring exposure to U.S. government debt to record highs. A Reuters/Ipsos poll completed on Monday found that three-fourths of Americans fear a default would take a heavy toll on families like theirs.

(Reporting by Nandita Bose, David Morgan and Jarrett Renshaw, additional reporting by Steve Holland, Jeff Mason, Richard Cowan and Moira Warburton; Editing by Heather Timmons, Jonathan Oatis and Richard Chang)

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By David Morgan and Jarrett Renshaw

WASHINGTON (Reuters) – Democratic President Joe Biden and top congressional Republican Kevin McCarthy will sit down on Tuesday to try to make progress on a deal to raise the U.S. government’s $31.4 trillion debt ceiling and avert an economically catastrophic default.

They have little time to reach a deal. The U.S. Treasury Department on Monday reiterated its warning that it could run short of money to pay all its bills as soon as June 1, which would trigger a default that economists say would be likely to spark a sharp economic downturn.

Republicans, who control the House of Representatives by a 222-213 majority, have for months demanded that any increase in the government’s self-imposed borrowing cap be linked to spending cuts. In the past week, staffs for both sides have discussed a range of issues, including spending caps and changes to energy permitting in exchange for votes to lift the limit, according to people briefed on the talks.

White House officials have described the talks as constructive, but McCarthy on Monday warned that he believed little progress had been made.

“If you look at the timeline to pass something in the House and pass something in the Senate, you’ve got to have something done by this weekend,” McCarthy told reporters. “And we are nowhere near any of that.”

Biden is due to leave town on Wednesday to attend a meeting of the Group of Seven rich nations in Japan, while the House is currently scheduled to leave Washington for a week-long recess after Thursday’s session.

Democrats including Senate Majority Leader Chuck Schumer, who is also expected to attend Tuesday’s White House meeting, said that talks were proceeding in a “serious way.”

He criticized Republicans for blocking a debt ceiling hike after helping to raise it three times under Biden’s Republican predecessor, Donald Trump.

“Default must be taken off the table,” Schumer said in a Monday speech on the Senate floor. “No one should play with it. No one should flirt with it. No one should hold it hostage and say unless you do this, we’re going to default, because the consequences of default are just awful.”

A similar 2011 standoff led to a historic downgrade of the United States’ credit rating, which sparked a selloff in stocks and pushed its borrowing costs higher.

The current standoff has rattled investors, sending the cost of insuring exposure to U.S. government debt to record highs, and a Reuters/Ipsos poll completed on Monday found that three-quarters of Americans fear that a default would take a heavy toll on families like theirs.

‘TOO MANY COOKS’

Some observers have raised concerns that the five-party talks — featuring Biden, McCarthy, Schumer, top Senate Republican Mitch McConnell and top House Democrat Hakeem Jeffries — are too unwieldy to make progress.

No. 2 Senate Republican John Thune told reporters that the talks appear to have “too many cooks.”

“As we’ve said all along, it is Biden and McCarthy,” Thune said. “So, whoever can actually speak on behalf of the president needs to get in the room, and get McCarthy’s best people in there, and get it done.”

Adding to the challenge of striking a deal, McCarthy agreed to a change in House rules that allows for just one member to call for his ouster as speaker, which gives greater power to hardliners, including the roughly three dozen members of the House Freedom Caucus.

(Reporting by David Morgan and Jarrett Renshaw, additional reporting by Jeff Mason, Richard Cowan and Moira Warburton; Editing by Scott Malone and Rosalba O’Brien)

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