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Swing-state Democrats turn on 8 centrists not facing reelection over hijacked shutdown

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The deal cut by some Senate Democrats to reopen government has refueled the party’s tussle over strategy and identity just days after sweeping election victories had raised hopes that the left’s disparate factions were pulling in the same direction heading into the 2026 midterms.

Democrats’ latest fault lines do not track perfectly along the familiar split between progressives and centrists. Instead, there’s renewed rancor over how aggressively to fight President Donald Trump and his compliant GOP majorities on Capitol Hill, with some progressives renewing their calls for Democratic Senate leader Chuck Schumer to step aside, even as he publicly opposes the latest deal.

The left flank is incensed that eight centrist senators — none of whom face reelection in 2026 — crafted a deal with Republicans that does not guarantee Democrats’ main demand to extend Affordable Care Act premium subsidies that will expire at the end of the year. They say the agreement means Schumer could not hold his caucus together.

Some moderates are frustrated, or at least caught on a political tightrope after more than a month of Democrats agreeing that the longest federal shutdown ever was the way, finally, to use their limited influence to achieve some policy and political wins in a Republican-dominated capital.

Party leaders including Schumer and House Minority Leader Hakeem Jeffries continue blaming Republicans for the looming premium spikes and other shutdown ripples, but the standoff’s sudden end underscores the difficulty of maintaining Democrats’ fragile and fractious coalition.

“The Republicans have learned they could hurt our communities, they could hurt everyday people, including their own constituents, and Democrats will fold,” said Maurice Mitchell, who leads the progressive Working Families Party.

New Jersey Gov.-elect Mikie Sherrill, who won by more than double Democrats’ 2024 margin in her state, said victories like hers showed voters “want leadership with a backbone” who “stay strong under pressure.”

Instead, she said, “The Senate is on the brink of caving.”

Democrats’ dealmakers say there was no viable alternative

The Democrats who cut a deal counter that they had little choice — that Republicans weren’t budging, and the pressure of the prolonged shutdown had become untenable as the Trump administration withheld food assistance payments to low-income Americans and mandated flight delays at airports strained by a shortage of air traffic controllers.

Democrats settled for a pledge from Senate Majority Leader John Thune, R-S.D., to hold a December vote on ACA subsidies, along with assuring back pay for federal workers who’ve missed paychecks, among other policy details.

“This was the only deal on the table,” said Sen. Jeanne Shaheen, D-N.H.

Democrats pointed to Trump, after the GOP’s electoral defeats, calling on Republican senators to end the filibuster and bypass the minority altogether. That, the centrists argued, showed Trump could not be maneuvered into negotiations — though Republican senators were pushing back to defend the filibuster.

“After 40 days, it wasn’t going to work,” Sen. Tim Kaine of Virginia said of Democrats’ demands.

Illinois Sen. Dick Durbin, Schumer’s deputy, said the shutdown “seemed to be an opportunity to lead us to a better policy. But it didn’t work.”

That did not convince many center-left and swing-state Democrats.

Senate holdouts included Michigan Sen. Elissa Slotkin, who won her seat in 2024 at the same time Trump won Michigan and other industrial Midwest battlegrounds, and Georgia Sen. Jon Ossoff, the only Democratic senator running for reelection in 2026 in a state Trump won in 2024.

“Premiums are set to double for 1.4 million Georgians and nearly half a million Georgians could lose health insurance altogether,” Ossoff said in a statement, before shifting blame to the GOP. “The President refuses to fix it and withholds SNAP benefits while the House has not even to come to work for six weeks.”

Mallory McMorrow, a Michigan state senator running for U.S. Senate, said the situation embodies a larger issue for the party, with Democrats playing by the usual set of rules while Republicans use more brazen tactics.

“It makes you wonder what was the fight for? Why the sacrifice?” McMorrow said, adding that some senators govern out of “nostalgia” without understanding a new landscape. “A refusal to evolve and recognize this is not the same Senate that it was a decade ago or even five years ago means that the party is never going to win.”

The deal highlights Democrats’ generational divides

None of the eight senators at the center of the agreement face voters in 2026, and they have an average age exceeding 65. Shaheen, 78, and Illinois Sen. Dick Durbin, 80, already have announced their retirements ahead of the midterms.

Shaheen found herself at odds with her daughter, 51-year-old Stefany Shaheen, who is running for Congress in New Hampshire. The younger Shaheen noted House Speaker Mike Johnson’s refusal thus far to schedule a House vote on the ACA insurance support.

“We need to both end this shutdown and extend the ACA tax credits,” she said in a statement. “Otherwise, no deal.”

It’s a difficult turn, especially, for Schumer. The 74-year-old New Yorker faced withering critiques for not shutting down government in the spring. The mention of his name last Friday at CrookedCon, a gathering of progressives in Washington, drew jeers and boos, even as he remained dug in for the latest shutdown fight.

The age of Democrats’ national leaders and the related assertion that they’re out of touch with the base have been defining aspects of the party dynamic for several years, with Joe Biden being the oldest president in U.S. history and having to be forced out of a reelection bid at the age of 82. But Biden and former Speaker Nancy Pelosi, who is retiring from the House at age 85, got credit for muscling through significant legislation with thin Democratic majorities.

Schumer, 74, played a key role in those accomplishments, too, leading Senate Democrats during Biden’s presidency. But he’s sometimes gotten less credit from party activists, and now he faces criticism for not keeping his caucus together in the latest shutdown fight, even with public polling and election outcomes suggesting voters were siding with Democrats.

“The best way to unify the Democratic Party and win big in 2026 is to make clear that the new generation of Democratic senators we elect will NOT be following Chuck Schumer down a losing path,” Progressive Change Campaign Committee chief Adam Green wrote to the organization’s supporters Monday, as he called for Schumer to step aside.

Senate candidate Graham Platner, who is running against Maine Gov. Janet Mills for the right to challenge Republican Sen. Susan Collins, also said Schumer should hand over caucus leadership.

“People are fed up with this,” Platner told Our Revolution activists on a Monday conference call. The deal, Platner said, “is just one more very stark piece of evidence to show that he is just completely unable to rise to this moment.”

Dems still want Republicans to own health care cuts

Durbin and others argue the six-week shutdown yielded something tangible because it elevated the healthcare issue. The promised Senate vote, they reason, will put each Republican on record and ensure Trump and his party will again have to take responsibility for any negative effects on people around the country.

“We get our day in court in December,” Durbin insisted.

Mitchell, meanwhile, said progressives already are looking ahead to 2026, starting with Democratic primary fights up and down the ballot.

“We don’t take any pride in the capitulation of our friends inside the Democratic Party,” he said. “But the story writes itself for why we need a fighting opposition party right now.”

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Billionaire Palantir cofounder Joe Lonsdale calls elite college undergrads a ‘loser generation’ as data reveals rise in students seeking support for disabilities

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That reality is showing up on a campus. A growing share of college students are seeking medical evaluations for ADHD, anxiety, and depression—and requesting academic accommodations such as extended time on exams and papers. At some of the country’s selective universities, the numbers are striking: more than 20% of undergraduates at Brown and Harvard are registered as disabled. At UMass Amherst, it’s 34%; Stanford, 38%, according to data analyzed by The Atlantic.

While it’s clear that many students requesting accommodations do so for legitimate medical reasons and that increased diagnoses may reflect greater mental-health awareness, some experts have raised concerns about overdiagnosis and whether universities are making it too easy for students to qualify. And the debate has set off a wildfire on social media this week, catching the attention of high-profile business leaders, including Joe Lonsdale, the billionaire venture capitalist and Palantir cofounder.

Lonsdale’s response offered no sympathy. “Loser generation,” he wrote in reaction to a graph showing the rising number of undergraduate students reporting disabilities.

“At Stanford it’s a hack for housing though and at some point I get it, even if it’s not my personal ethics. Terrible leadership from the university.”

He argued that families have been slowly using disability accommodations to give their children an academic advantage—when they might not actually need it.

“Claiming your child has a disability to give them a leg up became an obvious dominant game theoretic strategy for parents without honor in the 2010’s,” Lonsdale wrote earlier this month on X. “Great signal to avoid a family / not do business with parents who act this way.”

And while it’s unclear how many students, if any, are trying to game the system, Lonsdale has made his broader view clear: he doesn’t think universities are preparing young people—or evaluating them—in ways that matter.

“No great companies are interested in the BS games played by universities,” he added.

Fortune reached out to Lonsdale for further comment.

Lonsdale’s complicated history with higher education

Though a Stanford alum himself, Lonsdale has a complicated history with the institution and higher education more broadly.

In the early 2010s, while serving as a mentor in a Stanford tech entrepreneurship course, Lonsdale was accused of sexual assault by a student—and banned from mentoring undergraduates for 10 years and from campus entirely. The assault charges were later dropped, but Lonsdale acknowledged violating a rule prohibiting consensual relationships between mentors and students.

Less than a decade later, in 2021, Lonsdale cofounded his own school—the University of Austin—with Niall Ferguson, Bari Weiss, and others. The institution prides itself on freedom of speech and overcoming the “mediocrity” of traditional higher education. It welcomed its first group of undergraduates last fall and remains unaccredited.

The school has drawn support from Lonsdale’s fellow Palantir cofounder and Stanford alum Alex Karp, who has also criticized the college system.

“Everything you learned at your school and college about how the world works is intellectually incorrect,” Karp, Palantir’s CEO, told CNBC earlier this year.

Instead, the 58-year-old said Palantir is building a new credential “separate from class or background,” that is the “best credential in tech.”

“If you did not go to school, or you went to a school that’s not that great, or you went to Harvard or Princeton or Yale, once you come to Palantir, you’re a Palantirian,” Karp said during an earnings call earlier this year. “No one cares about the other stuff.”



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Exclusive: Crypto startup LI.FI raises $29 million for cross-blockchain price discovery tool

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When businesses decide to engage with crypto, they quickly discover the landscape is fragmented across numerous blockchains. If they want to move assets between different chains, they must often rely on a technology called bridging that can prove insecure and expensive. Philipp Zentner, cofounder and CEO of LI.FI, created his company to address these issues. The startup provides businesses with price comparisons of exchange rates and bridging fees. It also aims to find businesses the most efficient and cost-effective pathway for each transaction. 

On Thursday, LI.FI announced that it raised $29 million in funding led by Multicoin and CoinFund, bringing the total capital to about $52 million. Zentner did not disclose the company’s valuation. 

“You can think of us like a combination of Google Flights and Google Maps,” he said in an interview with Fortune. “[We’re] a competitive price comparison and transaction pathfinding for businesses in crypto finance.”

The businesses that LI.FI partners with are fintechs, brokerage apps, trading desks, wallets, and neobanks. The startup has more than 800 partners, including Robinhood, Binance, and Kraken. The company says that its value proposition is that its service allows companies to go to market faster and saves them time on research, integration, and maintenance. 

Zentner says that LI.FI is profitable and generates revenue through transaction fees, though he declined to disclose specific revenue numbers. It has $8 billion in monthly transaction volume as of October, which is about seven times more than its monthly volume from a year prior. The company has more than 100 employees. 

“As crypto trading becomes a core feature inside mainstream fintech apps, the hardest problem is…making fragmented blockchains, liquidity, and execution work seamlessly together,” said Spencer Applebaum, investment partner at Multicoin Capital, in a statement. “LI.FI Protocol gives fintechs and web3 wallets a single API to offer both trading and cross-chain asset movement, handling on-chain routing and execution behind the scenes.”

With the new funding, LI.FI plans to expand into different transaction domains, including perpetual futures, yield opportunities, prediction markets, and lending markets. Zentner says with the new capital he also aims to hire more employees.

Join us at the Fortune Workplace Innovation Summit May 19–20, 2026, in Atlanta. The next era of workplace innovation is here—and the old playbook is being rewritten. At this exclusive, high-energy event, the world’s most innovative leaders will convene to explore how AI, humanity, and strategy converge to redefine, again, the future of work. Register now.



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A San Francisco woman just gave birth in a Waymo robotaxi — and Waymo says it’s not the first time

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 Self-driving Waymo taxis have gone viral for negative reasons involving the death of a beloved San Francisco bodega cat and pulling an illegal U-turn in front of police who were unable to issue a ticket to a nonexistent driver.

But this week, the self-driving taxis are the bearer of happier news after a San Francisco woman gave birth in a Waymo.

The mother was on her way to the University of California, San Francisco medical center Monday when she delivered inside the robotaxi, said a Waymo spokesperson in a statement Wednesday. The company said its rider support team detected “unusual activity” inside the vehicle and called to check on the rider as well as alert 911.

Waymo, which is owned by Google’s parent company, Alphabet, declined to elaborate on how the vehicle knew something was amiss.

The company has said it has cameras and microphones inside as well as outside the cars.

The taxi and its passengers arrived safely at the hospital ahead of emergency services. Jess Berthold, a UCSF spokesperson, confirmed the mother and child were brought to the hospital. She said the mother was not available for interviews.

Waymo said the vehicle was taken out of service for cleaning after the ride. While still rare, this was not the first baby delivered in one of its taxis, the company said.

“We’re proud to be a trusted ride for moments big and small, serving riders from just seconds old to many years young,” the company said.

The driverless taxis have surged in popularity even as they court higher scrutiny. Riders can take them on freeways and interstates around San Francisco, Silicon Valley, Los Angeles and Phoenix.

In September, a Waymo pulled a U-turn in front of a sign telling drivers not to do that, and social media users dumped on the San Bruno Police because state law prohibited officers from ticketing the car. In October, a popular tabby cat named Kit Kat known to pad around its Mission District neighborhood was crushed to death by a Waymo.



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