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Trump’s staff cuts at federal agencies overseeing US dams could put public safety at risk, critics warn

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Trump administration workforce cuts at federal agencies overseeing U.S. dams are threatening their ability to provide reliable electricity, supply farmers with water and protect communities from floods, employees and industry experts warn.

The Bureau of Reclamation provides water and hydropower to the public in 17 western states. Nearly 400 agency workers have been cut through the Trump reduction plan, an administration official said.

“Reductions-in-force” memos have also been sent to current workers, and more layoffs are expected. The cuts included workers at the Grand Coulee Dam, the largest hydropower generator in North America, according to two fired staffers interviewed by The Associated Press.

“Without these dam operators, engineers, hydrologists, geologists, researchers, emergency managers and other experts, there is a serious potential for heightened risk to public safety and economic or environmental damage,” Lori Spragens, executive director of the Kentucky-based Association of Dam Safety Officials, told the AP.

White House spokesperson Anna Kelly said federal workforce reductions will ensure disaster responses are not bogged down by bureaucracy and bloat.

”A more efficient workforce means more timely access to resources for all Americans,” she said by email.

But a bureau hydrologist said they need people on the job to ensure the dams are working properly.

“These are complex systems,” said the worker in the Midwest, who is still employed but spoke on condition of anonymity for fear of possible retaliation.

Workers keep dams safe by monitoring data, identifying weaknesses and doing site exams to check for cracks and seepage.

“As we scramble to get these screenings, as we lose institutional knowledge from people leaving or early retirement, we limit our ability to ensure public safety,” the worker added. “Having people available to respond to operational emergencies is critical. Cuts in staff threaten our ability to do this effectively.”

A federal judge on Thursday ordered the administration to rehire fired probationary workers, but a Trump spokesperson said they would fight back, leaving unclear whether any would return.

The heads of 14 California water and power agencies sent a letter to the Bureau of Reclamation and the Department of Interior last month warning that eliminating workers with “specialized knowledge” in operating and maintaining aging infrastructure “could negatively impact our water delivery system and threaten public health and safety.”

The U.S. Army Corps of Engineers also operates dams nationwide. Matt Rabe, a spokesman, declined to say how many workers left through early buyouts, but said the agency hasn’t been told to reduce its workforce.

But Neil Maunu, executive director of the Pacific Northwest Waterways Association, said it learned more than 150 Army Corps workers in Portland, Oregon, were told they would be terminated and they expect to lose about 600 more in the Pacific Northwest.

The firings include “district chiefs down to operators on vessels” and people critical to safe river navigation, he said.

Their last day is not known. The Corps was told to provide a plan to the U.S. Office of Personnel Management by March 14, Maunu said.

Several other federal agencies that help ensure dams run safely also have faced layoffs and closures. The National Oceanic and Atmospheric Administration is laying off 10% of its workforce and the Federal Emergency Management Agency’s National Dam Safety Review Board was disbanded in January.

The cuts come at a time when the nation’s dams need expert attention.

An AP review of Army Corps data last year showed at least 4,000 dams are in poor or unsatisfactory condition and could kill people or harm the environment if they failed. They require inspections, maintenance and emergency repairs to avoid catastrophes, the AP found.

Heavy rain damaged the spillway at California’s Oroville Dam in 2017, forcing nearly 190,000 residents to evacuate, and Michigan’s Edenville Dam breached in storms in 2020, the AP found.

Stephanie Duclos, a Bureau of Reclamation probationary worker fired at the Grand Coulee Dam, said she was among a dozen workers initially terminated. The dam across the Columbia River in central Washington state generates electricity for millions of homes and supplies water to a 27-mile-long (43-kilometer) reservoir that irrigates the Columbia Basin Project.

“This is a big infrastructure,” she said. “It’s going to take a lot of people to run it.”

Some fired employees had worked there for decades but were in a probation status due to a position switch. Duclos was an assistant for program managers who organized training and was a liaison with human resources. The only person doing that job, she fears how others will cover the work.

“You’re going to get employee burnout” in the workers left behind, she said.

Sen. Alex Padilla, a California Democrat who pushed a bipartisan effort to ensure the National Dam Safety Program was authorized through 2028, said, “the safety and efficacy of our dams is a national security priority.

“Americans deserve better, and I will work to make sure this administration is held accountable for their reckless actions,” Padilla said.

This story was originally featured on Fortune.com



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Trump invokes 18th century law to declare invasion by gangs and speed deportations—potentially giving immigration crackdown a boost

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Claiming the United States was being invaded by a Venezuelan gang, President Donald Trump on Saturday invoked the Alien Enemies Act of 1798, a sweeping wartime authority that allows the president broader leeway on policy and executive action to speed up mass deportations of people — potentially pushing his promised crackdown on immigration into higher gear.

Trump’s declaration targets Tren de Aragua, contending it is a hostile force acting at the behest of Venezuela’s government. The declaration comes the same day that a federal judge in Washington barred the administration from deporting five Venezuelans under the expected order, a hint at the legal battle brewing over Trump’s move. The judge was scheduled to consider expanding the prohibition on deportation just minutes after Trump’s afternoon announcement.

“Over the years, Venezuelan national and local authorities have ceded ever-greater control over their territories to transnational criminal organizations, including TdA,” Trump’s statement reads. “The result is a hybrid criminal state that is perpetrating an invasion of and predatory incursion into the United States, and which poses a substantial danger to the United States.”

The act was last used as part of the internment of Japanese-American civilians during World War II and has only been used two other times in American history, during World War I and the War of 1812. Trump argued in his declaration that it is justified because he contends the Tren de Aragua gang, a common talking point on the campaign trail, has ties to the regime of Venezuelan President Nicolas Maduro.

Trump talked about using the act during his presidential campaign, and immigration groups were braced for it. That led to Saturday’s unusual lawsuit, filed before Trump’s declaration even became public. The suit by the American Civil Liberties Union and Democracy Forward on behalf of five Venezuelans whose cases suddenly moved towards deportation in recent hours.

James E. Boasberg, chief judge of the D.C. Circuit, agreed to implement a temporary restraining order preventing the deportation for 14 days under the act of the five Venezuelans who are already in immigration custody and believed they were being about to be deported. Boasberg said his order was “to preserve the status quo.” Boasberg scheduled a hearing for later in the afternoon to see if his order should be expanded to protect all Venezuelans in the United States.

Hours later, the Trump administration appealed the initial restraining order, contending that halting a presidential act before it has been announced would cripple the executive branch.

If the order were allowed to stand, “district courts would have license to enjoin virtually any urgent national-security action just upon receipt of a complaint,” the Justice Department wrote in its appeal.

It said district courts might then issue temporary restraining orders on actions such as drone strikes, sensitive intelligence operations, or terrorist captures or extraditions. The court “should halt that path in its tracks,” the department argued.

The unusual flurry of litigation highlights the controversial act, which could give Trump vast power to deport people in the country illegally. It could let him bypass some protections of normal criminal and immigration law to swiftly deport those his administration contends are members of the gang.

The White House has already designated Tren de Aragua a terrorist organization and is preparing to move about 300 people it identifies as members of the gang to detention in El Salvador.

This story was originally featured on Fortune.com



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The backbone of the US economy flashes stagflation warnings as uncertainty spikes on tariffs and layoffs — ‘storm clouds are forming’

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  • A recent survey of small businesses raised numerous red flags about the economy, including trends that point toward potential stagflation pressure. That’s as President Donald Trump keeps companies guessing on what he will do next on federal layoffs and tariffs, raising uncertainty about prices, costs, and expansion plans.

Small businesses are the backbone of the American economy as they employ the vast majority of workers, and they are flashing warnings on stagflationary pressure.

On Tuesday, the NFIB Small Business Optimism Index fell by 2.1 points in February to 100.7 while the reading on uncertainty rose 4 points to 104, the second highest level recorded.

Other findings raised red flags: fewer business owners expect the economy to improve, sales expectations were gloomier, and profit trends worsened.

Additional data points could raise alarms about stagflation, a combination of slower growth or contraction plus higher inflation.

The survey found that just 12% of owners think now is a good time to expand, a 5-point decline from January and the largest monthly decrease since April 2020—when the economy was still reeling from the early stages of the COVID-19 pandemic.

And the share of business owners who are raising average selling prices jumped 10 points from January. That’s the largest monthly increase since April 2021, when the post-pandemic inflation surge was taking off, and the third highest in the survey’s history.

“Confidence that the economy will continue to grow is fading, even with a new management team in place,” the NFIB report said, alluding to the Trump administration.

It cited US tariffs and retaliation from affected countries as well as the federal government shedding workers and trimming expenditures.

NFIB added that many small businesses are supported by work from other firms with government contracts.

“All consistent with the general tone of the financial press, the economy is still growing, but at a slower and slower rate, storm clouds are forming,” it warned.

The mounting pessimism among small-business owners is also echoed by consumers—whose spending is the driving force behind GDP and previously kept the economy resilient through Fed rate hikes.

The latest University of Michigan sentiment survey tumbled 11% from the prior month due to inflation fears. Year-ahead inflation expectations jumped up from 4.3% last month to 4.9% this month, the highest since November 2022 and the third straight month of an unusual large increase. Long-run inflation expectations surged from 3.5% to 3.9%, the largest month-over-month increase since 1993.

Torsten Sløk, chief economist at Apollo Global Management, said in a note on Thursday that this is a “wait-and-see economy” characterized by consumers and firms turning more cautious about spending decisions.

“The wait-and-see economy is no longer just for companies directly involved in trade with Canada and Mexico. Uncertainty for small businesses is near all-time high levels. This is a problem because small businesses are the foundation of the economy, accounting for more than 80% of total US employment,” he warned.

This story was originally featured on Fortune.com



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Warren Buffett saw the selloff coming and hoarded cash, analyst says, as markets await his next move — ‘patience is more than a virtue, it’s a weapon’

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  • After Warren Buffett sold $134 billion in equities in 2024 and is sitting on a $334 billion cash pile, one analyst said the “Oracle of Omaha” saw the current selloff coming. While it’s unlikely Buffett will make any big moves during the current market turmoil, some think he’ll look internationally or round out his insurance business.

Amid the stock market selloff, Berkshire Hathaway CEO Warren Buffett’s recent capital movements suggest he was preparing for it, according to an analyst. 

After tumbling more than 10% from its last peak, the Nasdaq remains in correction territory. The S&P 500 also entered a correction, though Friday’s rally pared its decline to less than 10% from its all-time record.

That has highlighted Berkshire’s recent cash hoarding as especially prescient. When asked if Buffett saw the selloff coming, Armando Gonzalez, founder of AI-powered research platform Bigdata.com, said the evidence suggests he did.

“Buffett’s actions over the past year have been a textbook example of positioning for turbulence,” he said in an emailed response to questions from Fortune.

Berkshire sold $134 billion in equities in 2024, ending the year with a cash pile of $334.2 billion—nearly double from a year ago and more than its shrinking stock portfolio of $272 billion. 

Gonzalez also noted that Buffett’s recent comments have been riddled with caution, emphasizing inflationary concerns and geopolitical uncertainty. For example, he warned that President Donald Trump’s tariffs will cause prices to rise.

“History shows when Buffett turns net seller, he often anticipates a period of subpar market performance,” Gonzalez said. “And once again, the Oracle of Omaha seems to have been ahead of the curve.”

With stocks well off their highs, that begs the question: will the famously value-conscious Buffett start deploying his cash by making some big purchases?

To be sure, Berkshire has made some moderate stock buys. But preferring bargains, Buffett historically looks to invest heavily in companies when valuations are low. During the peak of the 2008 financial crisis, for instance, Buffett deployed $3 billion into General Electric whose stock price had nosedived.

In his latest letter to Berkshire shareholders, Buffett reiterated his years-long view that valuations remained high. 

Gonzalez said it’s possible Buffett could start buying but only if true bargains emerge, noting that his track record shows a deep aversion to haste, even when markets tumble.

“He has no interest in timing the market’s bottom, nor does he chase short-term rebounds,” he said. “Instead, he waits for moments when fear drives prices to levels where the risk-reward equation tilts decisively in his favor.”

If Buffett should choose to finally make a big purchase, Gonzalez expects his next move to be used with a scalpel rather than a “broad-market splash,” if any at all. 

“In Buffett’s world, patience is more than a virtue, it’s a weapon,” he added.

While it’s uncertain if Buffett will go forward with a deal during the current market selloff, CFRA Research’s Cathy Seifert told Fortune she wouldn’t be surprised if Berkshire rounded out its insurance holdings. 

She added that valuations are still not dirt cheap, while the cash Buffett has parked in Treasury bonds is yielding him a good return and the competitive environment for deals has changed.

Additionally, Buffett has shown keen interest in Japanese trading companies, suggesting “a growing appetite for international diversification,” Gonzalez said. 

Since 2019, Berkshire has invested in the five biggest Japanese “sogo shosha,” which invest across sectors domestically and abroad. The trading houses—Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo—operate “in a manner somewhat similar to Berkshire itself,” Buffett wrote in his annual letter.

While Buffett sits on his pile of cash, his deployable funds may grow even more as rumors of a rare Berkshire sale circle.

The Wall Street Journal reported that real-estate brokerage Compass was in advanced talks to acquire Berkshire Hathaway’s HomeServices of America.

According to Berkshire’s annual report, HomeServices has 820 brokerage offices and 270 franchisees in 2024.

Berkshire Hathaway did not return Fortune’s request for comment.

This story was originally featured on Fortune.com



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