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Government shutdown also threatens home heating aid for millions of low-income families

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Jacqueline Chapman is a retired school aide who relies on a $630 monthly Social Security check to get by. She was navigating the loss of her federal food aid benefits when she learned the assistance she receives for heating her Philadelphia apartment may also be at risk.

“I feel like I’m living in scary times. It’s not easy to rest when you know you have things to do with limited accounts, limited funds. There isn’t too much you can do,” said Chapman, 74.

Chapman relies on the $4.1 billion Low-Income Home Energy Assistance Program, which helps millions of low-income households pay to heat and cool their homes.

With temperatures beginning to drop in areas across the United States, some states are warning that funding for the program is being delayed because of the federal government shutdown, now in its fifth week.

The anticipated delay comes as a majority of the 5.9 million households served by the federally funded heating and cooling assistance program are grappling with the sudden postponement of benefits through the Supplemental Nutrition Assistance Program, or SNAP, which helps about 1 in 8 Americans buy groceries. Money is running out for other safety net programs as well and energy prices are soaring.

“The impact, even if it’s temporary, on many of the nation’s poor families is going to be profound if we don’t solve this problem,” said Mark Wolfe, executive director of the National Energy Assistance Directors Association, which represents state directors of the program. Commonly called LIHEAP, it serves all 50 states, the District of Columbia, U.S. territories and federally recognized tribes.

“These are important income supports that are all potentially heading toward a cliff at the same time,” Wolfe said. “And I can’t point to a similar time in recent history where we’ve had this.”

States are warning applicants about a funding delay

LIHEAP, created in 1981, assists families in covering utility bills or the cost of paying for fuels delivered to homes, such as home heating oil. It has received bipartisan congressional support for decades.

States manage the program. They receive an allotment of federal money each year based on a formula that largely takes into account state weather patterns, energy costs and low-income population data.

While President Donald Trump proposed zero funding for the program in his budget, it was anticipated that Congress would fund LIHEAP for the budget year that began Oct. 1. But since Congress has not yet passed a full 2026 spending bill, states have not gotten their new allocations yet.

Some states, including Kansas, Pennsylvania, New York and Minnesota, have announced their LIHEAP programs are being delayed by the government shutdown.

In Pennsylvania, Democratic Gov. Josh Shapiro’s administration said it cannot front the $200 million-plus in federal LIHEAP aid it had expected to help pay heating bills for some 300,000 low-income households. It is predicting payments will not go out until at least December, instead of November, as is customary.

Minnesota’s energy assistance program is processing applications but the state’s Department of Commerce said federal LIHEAP dollars will likely be delayed by a month. The agency does not plan to pay recipients’ heating bills until the shutdown ends.

“As temperatures begin to drop, this delay could have serious impacts,” the agency said. The program services 120,000 households, both homeowners and renters, that include many older adults, young children and people with disabilities.

Connecticut has enough money to set aside to pay heating bills through at least the end of November or December, according to the group that helps administer LIHEAP. But the program faces uncertainty if the shutdown persists. Connecticut lawmakers are considering covering the cost temporarily with state budget reserves.

“The situation will get much more perilous for folks who do need those resources as we move later into the heating season,” said Rhonda Evans, executive director of the Connecticut Association for Community Action. More than 100,000 households were served last year.

A spokesperson for the U.S. Department of Health and Human Services, which oversees the assistance program, blamed the federal shutdown and the delay in LIHEAP payments on congressional Democrats and said the Trump administration is committed to reopening the government.

“Once the government reopens, ACF will work swiftly to administer annual awards,” the spokesperson said, referring to the Administration for Children and Families, an agency within HHS. The spokesperson did not directly answer whether the timing could be affected by the administration’s earlier decision to fire workers who run the LIHEAP program.

Wolfe, from the group that represents state program directors, predicts there could be delays into January. He noted there are questions over who will approve states’ program plans and how the money will be released when it becomes available.

“Once you’ve fired the staff, things just slow down,” he said.

Low-income families face mounting obstacles

Chapman, the retired school aide, may be eligible for a program through her gas utility to prevent being shut off this winter. But the roughly 9% of LIHEAP recipients who rely on deliverable fuels such as heating oil, kerosene, propane and wood pellets, typically do not have such protections.

Electric and natural gas companies are usually regulated by the state and can be told not to shut people off while the state waits to receive its share of the LIHEAP money, Wolfe said. But it is different when it involves a small oil or propane company, fuels more common in the Northeast.

“If you’re a heating oil dealer, we can’t tell that dealer, ‘Look, continue to provide heating oil to your low-income customers on the possibility you’ll get your money back,’” Wolfe said.

Mark Bain, 67, who lives in Bloomfield, Connecticut, with his son, a student at the University of Connecticut, started receiving financial assistance for his home heating oil needs three years ago.

“I remember the first winter before I knew about this program. I was desperate. I was on fumes,” said Bains, who is retired and relies on income from Social Security and a small annuity. “I was calling around to my social services people to find out what I could do.”

He has been approved this year for $500 in assistance but he has a half tank of oil left and cannot call for more until it is nearly empty. By that point, he is hoping there will be enough federal money left to fill it. He typically needs three deliveries to get through a winter.

Bains said he can “get by” if he does not receive the help this year.

“I would turn the heat down to like 62 (degrees) and throw on another blanket, you know, just to get through,” he said.



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Robert F. Kennedy Jr. turns to AI to make America healthy again

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HHS billed the plan as a “first step” focused largely on making its work more efficient and coordinating AI adoption across divisions. But the 20-page document also teased some grander plans to promote AI innovation, including in the analysis of patient health data and in drug development.

“For too long, our Department has been bogged down by bureaucracy and busy-work,” Deputy HHS Secretary Jim O’Neill wrote in an introduction to the strategy. “It is time to tear down these barriers to progress and unite in our use of technology to Make America Healthy Again.”

The new strategy signals how leaders across the Trump administration have embraced AI innovation, encouraging employees across the federal workforce to use chatbots and AI assistants for their daily tasks. As generative AI technology made significant leaps under President Joe Biden’s administration, he issued an executive order to establish guardrails for their use. But when President Donald Trump came into office, he repealed that order and his administration has sought to remove barriers to the use of AI across the federal government.

Experts said the administration’s willingness to modernize government operations presents both opportunities and risks. Some said that AI innovation within HHS demanded rigorous standards because it was dealing with sensitive data and questioned whether those would be met under the leadership of Health Secretary Robert F. Kennedy Jr. Some in Kennedy’s own “Make America Health Again” movement have also voiced concerns about tech companies having access to people’s personal information.

Strategy encourages AI use across the department

HHS’s new plan calls for embracing a “try-first” culture to help staff become more productive and capable through the use of AI. Earlier this year, HHS made the popular AI model ChatGPT available to every employee in the department.

The document identifies five key pillars for its AI strategy moving forward, including creating a governance structure that manages risk, designing a suite of AI resources for use across the department, empowering employees to use AI tools, funding programs to set standards for the use of AI in research and development and incorporating AI in public health and patient care.

It says HHS divisions are already working on promoting the use of AI “to deliver personalized, context-aware health guidance to patients by securely accessing and interpreting their medical records in real time.” Some in Kennedy’s Make America Healthy Again movement have expressed concerns about the use of AI tools to analyze health data and say they aren’t comfortable with the U.S. health department working with big tech companies to access people’s personal information.

HHS previously faced criticism for pushing legal boundaries in its sharing of sensitive data when it handed over Medicaid recipients’ personal health data to Immigration and Customs Enforcement officials.

Experts question how the department will ensure sensitive medical data is protected

Oren Etzioni, an artificial intelligence expert who founded a nonprofit to fight political deepfakes, said HHS’s enthusiasm for using AI in health care was worth celebrating but warned that speed shouldn’t come at the expense of safety.

“The HHS strategy lays out ambitious goals — centralized data infrastructure, rapid deployment of AI tools, and an AI-enabled workforce — but ambition brings risk when dealing with the most sensitive data Americans have: their health information,” he said.

Etzioni said the strategy’s call for “gold standard science,” risk assessments and transparency in AI development appear to be positive signs. But he said he doubted whether HHS could meet those standards under the leadership of Kennedy, who he said has often flouted rigor and scientific principles.

Darrell West, senior fellow in the Brooking Institution’s Center for Technology Innovation, noted the document promises to strengthen risk management but doesn’t include detailed information about how that will be done.

“There are a lot of unanswered questions about how sensitive medical information will be handled and the way data will be shared,” he said. “There are clear safeguards in place for individual records, but not as many protections for aggregated information being analyzed by AI tools. I would like to understand how officials plan to balance the use of medical information to improve operations with privacy protections that safeguard people’s personal information.”

Still, West, said, if done carefully, “this could become a transformative example of a modernized agency that performs at a much higher level than before.”

The strategy says HHS had 271 active or planned AI implementations in the 2024 financial year, a number it projects will increase by 70% in 2025.



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Construction workers are earning up to 30% more in the data center boom

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Big Tech’s AI arms race is fueling a massive investment surge in data centers with construction worker labor valued at a premium. 

Despite some concerns of an AI bubble, data center hyperscalers like Google, Amazon, and Meta continue to invest heavily into AI infrastructure. In effect, construction workers’ salaries are being inflated to satisfy a seemingly insatiable AI demand, experts tell Fortune.

In 2026 alone, upwards of $100 billion could be invested by tech companies into the data center buildout in the U.S., Raul Martynek, the CEO of DataBank, a company that contracts with tech giants to construct data centers, told Fortune.

In November, Bank of Americaestimated global hyperscale spending is rising 67% in 2025 and another 31% in 2026, totaling a massive $611 billion investment for the AI buildout in just two years.

Given the high demand, construction workers are experiencing a pay bump for data center projects.

Construction projects generally operate on tight margins, with clients being very cost-conscious, Fraser Patterson, CEO of Skillit, an AI-powered hiring platform for construction workers, told Fortune.

But some of the top 50 contractors by size in the country have seen their revenue double in a 12-month period based on data center construction, which is allowing them to pay their workers more, according to Patterson.

“Because of the huge demand and the nature of this construction work, which is fueling the arms race of AI… the budgets are not as tight,” he said. “I would say they’re a little more frothy.”

On Skillit, the average salary for construction projects that aren’t building data centers is $62,000, or $29.80 an hour, Patterson said. The workers that use the platform comprise 40 different trades and have a wide range of experience from heavy equipment operators to electricians, with eight years as the average years of experience.

But when it comes to data centers, the same workers make an average salary of $81,800 or $39.33 per hour, Patterson said, increasing salaries by just under 32% on average.

Some construction workers are even hitting the six-figure mark after their salaries rose for data center projects, according to The Wall Street Journal. And the data center boom doesn’t show any signs it’s slowing down anytime soon.

Tech companies like Google, Amazon, and Microsoft operate 522 data centers and are developing 411 more, according to The Wall Street Journal, citing data from Synergy Research Group. 

Patterson said construction workers are being paid more to work on building data centers in part due to condensed project timelines, which require complex coordination or machinery and skilled labor.

Projects that would usually take a couple of years to finish are being completed—in some instances—as quickly as six months, he said.

It is unclear how long the data center boom might last, but Patterson said it has in part convinced a growing number of Gen Z workers and recent college grads to choose construction trades as their career path.

“AI is creating a lot of job anxiety around knowledge workers,” Patterson said. “Construction work is, by definition, very hard to automate.”

“I think you’re starting to see a change in the labor market,” he added.



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Netflix cofounder started his career selling vacuums door-to-door before college—now, his $440 billion streaming giant is buying Warner Bros. and HBO

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Reed Hastings may soon pull off one of the biggest deals in entertainment history. On Thursday, Netflix announced plans to acquire Warner Bros.—home to franchises like Dune, Harry Potter, and DC Universe, along with streamer HBO Max—in a total enterprise value deal of $83 billion. The move is set to cement Netflix as a media juggernaut that now rivals the legacy Hollywood giants it once disrupted.

It’s a remarkable trajectory for Netflix’s cofounder, Hastings—a self-made billionaire who found a love for business starting as a teenage door-to-door salesperson.

“I took a year off between high school and college and sold Rainbow vacuum cleaners door to door,” Hastings recalled to The New York Timesin 2006. “I started it as a summer job and found I liked it. As a sales pitch, I cleaned the carpet with the vacuum the customer had and then cleaned it with the Rainbow.”

That scrappy sales job was the first exposure to how to properly read customers—an instinct that would later shape Netflix’s user-obsessed culture. After graduating from Bowdoin College in 1983, Hastings considered joining the Marine Corps but ultimately joined the Peace Corps, teaching math in Eswatini for two years. When he returned to the U.S., he obtained a master’s in computer science from Stanford and began his career in tech.

The idea for Netflix reportedly came a few years later in the late 1990s. After misplacing a VHS copy of Apollo 13 and getting hit with a $40 late fee at Blockbuster, Hastings began exploring a mail-order rental service. While it’s an origin story that has since been debated, it marked the start of a company that would reshape global entertainment.

Hastings stepped back as CEO in 2023 and now serves as Netflix’s chairman of the board. He has amassed a net worth of about $5.6 billion. He’d be even richer if he didn’t keep offloading his shares in the company and making record-breaking charitable donations.

Netflix’s secret for success: finding the right people

Hastings has long said that one of the biggest drivers of Netflix’s success is its focus on hiring and keeping exceptional talent.

“If you’re going to win the championship, you got to have incredible talent in every position. And that’s how we think about it,” he told CNBC in 2020. “We encourage people to focus on who of your employees would you fight hard to keep if they were going to another company? And those are the ones we want to hold onto.”

To secure top performers, Hastings said he was more than willing to pay for above-market rates. 

“With a fixed amount of money for salaries and a project I needed to complete, I had a choice: Hire 10 to 25 average engineers, or hire one ‘rock-star’ and pay significantly more than what I’d pay the others, if necessary,” Hastings wrote. “Over the years, I’ve come to see that the best programmer doesn’t add 10 times the value. He or she adds more like a 100 times.”

That mindset also guided Netflix’s leadership transition. When Hastings stepped back from the C-suite, the company didn’t pick a single successor—it picked two. Greg Peters joined Ted Sarandos as co-CEO in 2023.

“It’s a high-performance technique,” Hastings said, speaking about the co-CEO model. “It’s not for most situations and most companies. But if you’ve got two people that work really well together and complement and extend and trust each other, then it’s worth doing.”

Netflix’s stock has soared more than 80,000% since its IPO in 2002, adjusting for stock splits.

Netflix brought unlimited PTO into the mainstream

Netflix’s flexible workplace culture has also played a key role in its success, with Hastings often known for prioritizing time off to recharge. 

“I take a lot of vacation, and I’m hoping that certainly sets an example,” the former CEO said in 2015. “It is helpful. You often do your best thinking when you’re off hiking in some mountain or something. You get a different perspective on things.”

The company was one of the first to introduce unlimited PTO, a policy that many firms have since adopted. About 57% of retail investors have said it could improve overall company performance, according to a survey by Bloomberg. Critics have argued that such policies can backfire when employees feel guilty taking time off, but Hastings has maintained that freedom is core to Netflix’s identity. 

“We are fundamentally dedicated to employee freedom because that makes us more flexible, and we’ve had to adapt so much back from DVD by mail to leading streaming today,” Hastings said. “If you give employees freedom you’ve got a better chance at that success.”

Netflix’s other cofounder, Marc Randolph, embraced a similar philosophy of valuing work-life balance.

“For over thirty years, I had a hard cut-off on Tuesdays. Rain or shine, I left at exactly 5 p.m. and spent the evening with my best friend. We would go to a movie, have dinner, or just go window-shopping downtown together,” Randolph wrote in a LinkedIn post.

“Those Tuesday nights kept me sane. And they put the rest of my work in perspective.”



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