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Federal judge pauses Trump administration plan to end temporary legal protections for Venezuelans, calling it likely ‘motivated by unconstitutional animus’

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A federal judge on Monday paused plans by the Trump administration to end temporary legal protections for hundreds of thousands of Venezuelans, a week before they were scheduled to expire.

The order by U.S. District Judge Edward Chen in San Francisco is a relief for 350,000 Venezuelans whose Temporary Protected Status was set to expire April 7 after Homeland Security Secretary Kristi Noem reversed protections granted by the Biden administration.

Chen said in his ruling that the action by Noem “threatens to: inflict irreparable harm on hundreds of thousands of persons whose lives, families, and livelihoods will be severely disrupted, cost the United States billions in economic activity, and injure public health and safety in communities throughout the United States.”

He said the government had failed to identify any “real countervailing harm in continuing TPS for Venezuelan beneficiaries” and said plaintiffs will likely succeed in showing that Noem’s actions “are unauthorized by law, arbitrary and capricious, and motivated by unconstitutional animus.”

Chen, who was appointed to the bench by President Barack Obama, a Democrat, said his order in the lawsuit brought by the National TPS Alliance applies nationally. Noem had also announced the end of TPS for an estimated 250,000 additional Venezuelans in September.

The judge gave the government one week to file notice of an appeal and the plaintiffs one week to file to pause for 500,000 Haitians whose TPS protections are set to expire in August. Alejandro Mayorkas, the previous secretary, had extended protections for all three cohorts into 2026.

“Today is a good day for the migrant community in this country,” said Pablo Alvarado, co-executive director of the National Day Laborer Organizing Network.

He said that people fleeing war-torn El Salvador who initially benefited from the TPS program fought to maintain protections that came to include countries such as Ukraine, Sudan and Syria — and the broader community must continue fighting.

“It takes so much courage to come forward and say, ‘Here I am, and I’m going to fight for this,’” Alvarado said. “We’re not going to throw anyone under the bus. We’re going to fight for everyone because everyone is deserving.”

The Department of Homeland Security did not immediately respond to a request for comment.

Congress created TPS, as the law is known, in 1990 to prevent deportations to countries suffering from natural disasters or civil strife, giving people authorization to live and work in the U.S. in increments of up to 18 months if the Homeland Security secretary deems conditions in their home countries are unsafe for return.

The reversals are a major about-face from immigration policies under former President Joe Biden, a Democrat, and come as Republican President Donald Trump and his top aides have ratcheted up attacks on judges who rule against them, with immigration being at the forefront of many disagreements.

At a hearing last Monday, lawyers for TPS holders said that Noem has no authority to cancel the protections and that her actions were motivated in part by racism. They asked the judge to pause Noem’s orders, citing the irreparable harm to TPS holders struggling with fear of deportation and potential separation from family members.

Government lawyers for Noem said that Congress gave the secretary clear and broad authority to make determinations related to the TPS program and that the decisions were not subject to judicial review. Plaintiffs have no right to thwart the secretary’s orders from being carried out, they said.

But Chen found the government’s arguments unpersuasive and said that numerous derogatory and false comments by Noem — and by Trump — against Venezuelans as criminals show that racial animus was a motivator in ending protections.

“Acting on the basis of a negative group stereotype and generalizing such stereotype to the entire group is the classic example of racism,” he wrote.

Biden sharply expanded use of TPS and other temporary forms of protection in a strategy to create and expand legal pathways to live in the United States while suspending asylum for those who enter illegally.

Trump has questioned the the impartiality of a federal judge who blocked his plans to deport Venezuelan immigrants to El Salvador, levelling his criticism only hours before his administration asked an appeals court to lift the judge’s order.

The administration has also said it was revoking temporary protections for more than 530,000 Cubans, Haitians, Nicaraguans and Venezuelans who have come to the U.S. since October 2022 through another legal avenue called humanitarian parole, which Biden used more than any other president. Their two-year work permits will expire April 24.

This story was originally featured on Fortune.com



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Trump’s tariffs are sending ultra-rich investors to Europe and Asia: ‘The world has changed in the last 3 months’

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Though President Donald Trump has said his aggressive tariff strategy, unveiled this week, will make the markets “boom,” it has so far resulted in a rout, with U.S. equity markets suffering their worst week since March 2020 and more pain likely on the way. And that’s sending ultra-wealthy investors to seek refuge from the financial storm abroad.

The average tariff rate is even higher than in the 1930s, “which means there is no modern-day precedent to predict the economic hit,” says Larry Adam, chief investment officer at Raymond James. The U.S. markets have been tanking in the aftermath, and analysts including from JPMorgan are ringing alarm bells about a potential recession this year. The preeminence and exceptionalism of the U.S. is now being questioned.

Investors are reacting accordingly. Worried about the effects of tariffs and other moves by the Trump administration that could hurt growth in the U.S.—such as defunding research efforts around the country—ultra high net worth and family office investors are rethinking their positions here, at least in the short term.

“We’ve seen a growing interest among high-net-worth family office clients in diversifying a portion of their portfolios outside the United States,” says Jon Ulin, private wealth advisor at Ulin & Co. Wealth Management. “This trend is largely driven by concerns over policy uncertainty and potential economic or market disruptions.”

Of course, many of these wealthy investors already hold sizable investments and real estate holdings abroad, particularly those who were born in another country or have dual citizenship somewhere. But the uncertainty now plaguing the U.S. economy is causing them to double down on looking for better growth opportunities and hedges abroad. Ulin’s team is now tilting managed portfolios more international than U.S. “to better navigate the trade war fall out of domestic stocks and the markets.”

“For them, investing internationally is not just about diversification, it serves as a currency hedge and provides access to government bonds and equities that may not be readily available in U.S. markets,” says Ulin.

At a media event Thursday, Goldman Sachs representatives said they are watching Trump’s moves closely. Many of their ultra-high net worth (UHNW) clients are asking for guidance, though they haven’t fled from U.S. equities just yet. But non-U.S. equities have outperformed so far this year, and broader diversification in general is a goal for the firm. Still, the firm is bullish on U.S. long-term given the country’s ability to innovate.

“There’s still some belief that even if things look murky in the U.S. … the U.S. may end up better than other countries on the other side of the tariffs,” said Elizabeth Burton, senior client investment strategist at Goldman Sachs.

That said, many UHNW clients were thinking of moving money out of the U.S. even before Trump’s so-called Liberation Day. Europe, for example, may be more attractive given its increase in defense spending. In Asia, India is attracting Goldman’s attention.

“For so long, being long the U.S., and particularly large cap U.S., was was the right investment,” said Matt Gibson, Goldman’s global head of the Client Solutions Group. “A lot of our clients in Q4 [2024], as they saw the election happen and so forth, started to wonder if keeping that trade on was the right thing to do.”

Tariff uncertainty is pushing those conversations into overdrive.

“The world has changed in the last three months in a material way,” said Marc Nachmann, Goldman’s global head of asset & wealth management. “Our conversations with clients right now include … how should we think about these tariffs? How should they make us rethink how we allocate all of our assets?”

This story was originally featured on Fortune.com



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