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‘These are people who are in this country doing hard work that many Americans don’t want to do’: Farmers, schools reel from Trump immigration crackdown

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Maria worked cleaning schools in Florida for $13 an hour. Every two weeks, she’d get a $900 paycheck from her employer, a contractor. Not much — but enough to cover rent in the house that she and her 11-year-old son share with five families, plus electricity, a cellphone and groceries.

In August, it all ended.

When she showed up at the job one morning, her boss told her that she couldn’t work there anymore. The Trump administration had terminated President Joe Biden’s humanitarian parole program, which provided legal work permits for Cubans, Haitians, Venezuelans as well as Nicaraguans like Maria.

“I feel desperate,’’ said Maria, 48, who requested anonymity to talk about her ordeal because she fears being detained and deported. “I don’t have any money to buy anything. I have $5 in my account. I’m left with nothing.’’

President Donald Trump’s sweeping crackdown on immigration is throwing foreigners like Maria out of work and shaking the American economy and job market. And it’s happening at a time when hiring is already deteriorating amid uncertainty over Trump’s erratic trade policies.

Immigrants do jobs — cleaning houses, picking tomatoes, painting fences — that most native-born Americans won’t, and for less money. But they also bring the technical skills and entrepreneurial energy that have helped make the United States the world’s economic superpower.

Trump is attacking immigration at both ends of spectrum, deporting low-wage laborers and discouraging skilled foreigners from bringing their talents to the United States.

And he is targeting an influx of foreign workers that eased labor shortages and upward pressure on wages and prices at a time when most economists thought that taming inflation would require sky-high interest rates and a recession — a fate the United States escaped in 2023 and 2024.

“Immigrants are good for the economy,” said Lee Branstetter, an economist at Carnegie-Mellon University. “Because we had a lot of immigration over the past five years, an inflationary surge was not as bad as many people expected.”

More workers filling more jobs and spending more money has also helped drive economic growth and create still-more job openings. Economists fear that Trump’s deportations and limits on even legal immigration will do the reverse.

In a July report, researchers Wendy Edelberg and Tara Watson of the centrist Brookings Institution and Stan Veuger of the right-leaning American Enterprise Institute calculated that the loss of foreign workers will mean that monthly U.S. job growth “could be near zero or negative in the next few years.’’

Hiring has already slowed significantly, averaging a meager 29,000 a month from June through August. (The September jobs report has been delayed by the ongoing shutdown of the federal government.) During the post-pandemic hiring boom of 2021-2023, by contrast, employers added a stunning 400,000 jobs a month.

The nonpartisan Congressional Budget Office, citing fallout Trump’s immigration and trade policies, downgraded its forecast for U.S. economic growth this year to 1.4% from the 1.9% it had previously expected and from 2.5% in 2024.

‘We need these people’

Goodwin Living, an Alexandria, Virginia nonprofit that provides senior housing, health care and hospice services, had to lay off four employees from Haiti after the Trump administration terminated their work permits. The Haitians had been allowed to work under a humanitarian parole program and had earned promotions at Goodwin.

“That was a very, very difficult day for us,” CEO Rob Liebreich said. “It was really unfortunate to have to say goodbye to them, and we’re still struggling to fill those roles.’’

Liebreich is worried that another 60 immigrant workers could lose their temporary legal right to live and work in the United States. “We need all those hands,’’ he said. “We need all these people.”

Goodwin Living has 1,500 employees, 60% of them from foreign countries. It has struggled to find enough nurses, therapists and maintenance staff. Trump’s immigration crackdown, Liebreich said, is “making it harder.’’

The ICE crackdown

Trump’s immigration ambitions, intended to turn back what he calls an “invasion” at America’s southern border and secure jobs for U.S.-born workers, were once viewed with skepticism because of the money and economic disruption required to reach his goal of deporting 1 million people a year. But legislation that Trump signed into law July 4 — and which Republicans call the One Big Beautiful Bill Act — suddenly made his plans plausible.

The law pours $150 billion into immigration enforcement, setting aside $46.5 billion to hire 10,000 Immigration and Customs Enforcement (ICE) agents and $45 billion to increase the capacity of immigrant detention centers.

And his empowered ICE agents have shown a willingness to move fast and break things — even when their aggression conflicts with other administration goals.

Last month, immigration authorities raided a Hyundai battery plant in Georgia, detained 300 South Korean workers and showed video of some of them shackled in chains. They’d been working to get the plant up and running, bringing expertise in battery technology and Hyundai procedures that local American workers didn’t have.

The incident enraged the South Koreans and ran counter to Trump’s push to lure foreign manufacturers to invest in America. South Korean President Lee Jae Myung warned that the country’s other companies might be reluctant about betting on America if their workers couldn’t get visas promptly and risked getting detained.

Sending Medicaid recipients to the fields

America’s farmers are among the president’s most dependable supporters.

But John Boyd Jr., who farms 1,300 acres of soybeans, wheat and corn in southern Virginia, said that the immigration raids — and the threat of them — are hurting farmers already contending with low crop prices, high costs and fallout from Trump’s trade war with China, which has stopped buying U.S. soybeans and sorghum.

“You got ICE out here, herding these people up,’’ said Boyd, founder of the National Black Farmers Association . “(Trump) says they’re murderers and thieves and drug dealers, all this stuff. But these are people who are in this country doing hard work that many Americans don’t want to do.’’

Boyd scoffed at U.S. Agriculture Secretary Brooke Rollins’ suggestion in July that U.S.-born Medicaid recipients could head to the fields to meet work requirements imposed this summer by the Republican Congress. “People in the city aren’t coming back to the farm to do this kind of work,’’ he said. “It takes a certain type of person to bend over in 100-degree heat.’’

The Trump administration itself admits that the immigration crackdown is causing labor shortages on the farm that could translate into higher prices at the supermarket.

“The near total cessation of the inflow of illegal aliens combined with the lack of an available legal workforce,’’ the Labor Department said in an Oct. 2 filing the Federal Register, “results in significant disruptions to production costs and (threatens) the stability of domestic food production and prices for U.S consumers.’’

“You’re not welcome here”

Jed Kolko of the Peterson Institute for International Economics said that job growth is slowing in businesses that rely on immigrants. Construction companies, for instance, have shed 10,000 jobs since May.

“Those are the short-term effects,’’ said Kolko, a Commerce Department official in the Biden administration. “The longer-term effects are more serious because immigrants traditionally have contributed more than their share of patents, innovation, productivity.’’

Especially worrisome to many economists was Trump’s sudden announcement last month that he was raising the fee on H-1B visas, meant to lure hard-to-find skilled foreign workers to the United States, from as little as $215 to $100,000.

“A $100,000 visa fee is not just a bureaucratic cost — it’s a signal,” Dany Bahar, senior fellow at the Center for Global Development, said. “It tells global talent: ‘You are not welcome here.’’’

Some are already packing up.

In Washington D.C., one H-1B visa holder, a Harvard graduate from India who works for a nonprofit helping Africa’s poor, said Trump’s signal to employers is clear: Think twice about hiring H-1B visa holders.

The man, who requested anonymity, is already preparing paperwork to move to the United Kingdom. “The damage is already done, unfortunately,’’ he said.

_____

Wiseman reported from Washington and Salomon from Miami.

AP Writers Fu Ting and Christopher Rugaber in Washington contributed to this report.



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‘Creativity is the new productivity’: Bob Iger on why Disney chose to be ‘aggressive’

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In a landmark move that signals a definitive shift in how major media conglomerates approach artificial intelligence (AI), OpenAI has gone from the company that had unapproved Disney princesses being made from its tools to a $1 billion partnership with the house of mouse itself. Disney CEO Bob Iger unpacked the deal jointly with OpenAI CEO Sam Altman in a TV interview with CNBC’s Squawk on the Street, explaining “we’d rather participate in the rather dramatic growth, rather than just watching it happen and essentially being disrupted by it.” He also reframed the issue of how AI is reshaping entertainment, business, even work itself: “Someone once said to me that creativity is the new productivity, and I think you’re starting to see that more and more.”

The deal, which brings Disney’s intellectual property to OpenAI’s video generation platform Sora, is structured to balance “aggressive” intellectual property protection with a willingness to embrace inevitable technological disruption, Iger said. Under the terms of the three-year agreement, Disney will license approximately 200 characters for use within Sora, allowing users to create short-form videos featuring iconic figures ranging from Mickey Mouse to Star Wars personalities.

Iger framed the partnership not as a concession to AI, but as a necessary evolution—and one that is actually good for human artists. This is because the deal does not include name and likeness, nor does it include character voices. “And so, in reality, this does not in any way represent a threat to the creators at all, in fact, the opposite. I think it honors them and respects them, in part because there’s a license fee associated with it.” Iger stressed repeatedly Disney wants to be on the cutting edge of how technology reinvents entertainment. “No human generation has ever stood in the way of technological advance, and we don’t intend to try.”

The partnership stands in stark contrast to Disney’s relationship with other tech giants. On the same day the OpenAI deal was announced, Disney sent a cease-and-desist letter to Google regarding alleged misuse of IP. Iger explained the divergence in approach by noting that, unlike Google, OpenAI has agreed to “honor and value and respect” Disney’s content through a licensing fee and safety guardrails. “We have been aggressive at protecting our IP, and we have gone after other companies that have not honored our IP,” Iger said, adding conversations with Google had failed to “bear fruit.”

A win-win partnership?

For OpenAI, reportedly under pressure from the aforementioned Google—whose Gemini 3 has been hailed by AI luminaries such as Salesforce billionaire Marc Benioff—the deal represents a validation of its generative video technology. Altman told CNBC user demand for Disney characters was “sort-of off the charts,” and he envisioned a future in which fans can generate custom content, such as a “Buzz Lightyear custom birthday video” or a personalized lightsaber scene. Altman argued the partnership would unlock “latent creativity” in the general public by lowering the skill and effort required to bring ideas to life.

The collaboration will also extend to Disney’s own streaming platform. Iger revealed plans to integrate “user prompted Sora-generated content” directly into Disney+. He said specifically Disney has “wanted for a long time to have what we will call user-generated content on our platform,” suggesting this partnership is a defensive move with regard to streaming giant YouTube and social media epicenter TikTok, which is partially under the control of the Ellison family that also controls entertainment rival Paramount.

The deal includes undisclosed warrants, giving Disney a financial stake in OpenAI’s success. Iger confirmed the warrants and declined to offer more specifics. He compared this forward-thinking approach to Disney’s 2005 decision to license shows to iTunes, viewing the OpenAI partnership as the modern equivalent of boarding a “profound wave” of societal change.

Iger revealed the groundwork for this deal was laid several years ago, saying he had first met Altman in 2022, when he was retired from Disney, before his comeback as CEO. Altman gave Iger a “bit of a road map” about where OpenAI was headed, and Disney has been “extremely impressed” with OpenAI’s growth since then, with all of Altman’s predictions from 2022 coming true a lot faster than either party realized. Iger added Disney sees great opportunities to license other product from OpenAI in the years ahead, which he sees being a huge push in “essentially accomplish[ing] a lot of what we feel we need to accomplish in the years ahead.”



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Why Jerome Powell’s latest rate cut still won’t help you get a lower mortgage rate

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For the third meeting in a row, the Federal Reserve cut interest rates—a “hawkish” move in an effort to help a softening labor market. The 0.25% cut brought the interest rate range to 3.5% to 3.75%—but economists and housing experts warn that’s not going to affect mortgage rates in the way potential homebuyers were hoping for. 

Chen Zhao, head of economics research at Redfin, wrote in a Wednesday post that the Fed’s December interest rate cut won’t move mortgage rates “because markets have already priced it in.” 

The Federal Reserve controls the Federal funds rate, which is a rate that banks charge each other and is more closely tied to credit cards, personal loans, and home-equity lines. A standard 30-year mortgage, on the other hand, is a long-term loan, and the pricing of those loans are tied more closely to yields on longer-term bonds like the 10-year Treasury and mortgage-backed securities. 

“Since this rate cut was no surprise, the markets have taken it in stride,” 43-year mortgage industry veteran Melissa Cohn, regional vice president of William Raveis Mortgage, told Fortune. She said more dropping shoes in terms of economic data will be the real turning point: “The future of bond yields and mortgage rates will be determined as new data on jobs and inflation get released.”

The current mortgage rate is 6.3%, according to Mortgage News Daily, which is of course much higher than the sub-3% rate that homebuyers from the pandemic era remember, although it’s also a far cry from the 8% peak in October 2023

“The committee’s projections and Chair Jerome Powell’s remarks indicate that this will be the last interest cut for a while,” Zhao wrote. “Given the underlying economic fundamentals of 3% inflation coupled with a weakening—but not recessionary—labor market, the Fed is likely to hold steady in the near future.

“Mortgage rates are unlikely to fall or rise by much,” she continued.

How mortgage rates affect housing affordability

Mortgage rates are just one piece of the housing affordability puzzle. While it may feel as if it’s the major roadblock in the ability to buy a home—especially having a recent memory of the pandemic housing boom—mortgage rates are only one factor. 

To put it in perspective, Zillow reported earlier this year not even a 0% mortgage rate would make buying a house affordable in several major U.S. cities. 

Let that sink in. 

Even without any interest accrued on a loan, homebuying is still out of reach for the typical American. Much of the affordability crisis has to do with home prices, which are more than 50% higher than in 2020. This has locked out new homebuyers from entering the market and current homeowners from selling. 

The mortgage rate drop required to make an average home affordable (to about 4.43%) for the typical buyer is “unrealistic,” according to Zillow economic analyst Anushna Prakash.  

“It’s unlikely rates will drop to the mid-[4% range] anytime soon,” Arlington, Va.–based real estate agent Philippa Main told Fortune. “And even if they did, housing prices are still at historic highs.” With 11 years of experience, Main is also a licensed mortgage loan officer.

To be sure, some economists see some light at the end of the tunnel for homebuyers plagued by high mortgage rates and home prices.

“For prospective buyers who have been waiting on the sidelines, the housing market is finally starting to listen,” wrote First American chief economist Mark Fleming in an Aug. 29 blog post. First American’s analysis takes into account inflation, and Fleming said: “The price of a house today is not directly comparable to the price of that same house 30 years ago.”



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OpenAI debuts GPT-5.2 in effort to silence concerns it is falling behind its rivals

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OpenAI, under increasing competitive pressure from Google and Anthropic, has debuted a new AI model, GPT-5.2, that it says beats all existing models by a substantial margin across a wide range of tasks.

The new model, which is being released less than a month after OpenAI debuted its predecessor, GPT-5.1, performed particularly well on a benchmark of complicated professional tasks across a range of “knowledge work”—from law to accounting to finance—as well as on evaluations involving coding and mathematical reasoning, according to data OpenAI released.

Fidji Simo, the former InstaCart CEO who now serves as OpenAI’s CEO of applications, told reporters that the model should not been seen as a direct response to Google’s Gemini 3 Pro AI model, which was released last month. That release prompted OpenAI CEO Sam Altman to issue a “code red,” delaying the rollout of several initiatives in order to focus more staff and computing resources on improving its core product, ChatGPT.

“I would say that [the Code Red] helps with the release of this model, but that’s not the reason it is coming out this week in particular, it has been in the works for a while,” she said.

She said the company had been building GPT-5.2 “for many months.” “We don’t turn around these models in just a week. It’s the result of a lot of work,” she said. The model had been known internally by the code name “Garlic,” according to a story in The Information. The day before the model’s release Altman teased its imminent rollout by posting to social media a video clip of him cooking a dish with a large amount of garlic.

OpenAI executives said that the model had been in the hands of “Alpha customers” who help test its performance for “several weeks”—a time period that would mean the model was completed prior to Altman’s “code red” declaration.

These testers included legal AI startup Harvey, note-taking app Notion, and file-management software company Box, as well as Shopify and Zoom.

OpenAI said these customers found GPT-5.2 demonstrated a “state of the art” ability to use other software tools to complete tasks, as well as excelling at writing and debugging code.

Coding has become one of the most competitive use cases for AI model deployment within companies. Although OpenAI had an early lead in the space, Anthropic’s Claude model has proved especially popular among enterprises, exceeding OpenAI’s marketshare according to some figures. OpenAI is no doubt hoping to convince customers to turn back to its models for coding with GPT-5.2.

Simo said the “Code Red” was helping OpenAI focus on improving ChatGPT. “Code Red is really a signal to the company that we want to marshal resources in one particular area, and that’s a way to really define priorities and define things that can be deprioritized,” she said. “So we have had an increase in resources focused on ChatGPT in general.”

The company also said its new model is better than the company’s earlier ones at providing “safe completions”—which it defines as providing users with helpful answers while not saying things that might contribute to or worsen mental health crises.

“On the safety side, as you saw through the benchmarks, we are improving on pretty much every dimension of safety, whether that’s self harm, whether that’s different types of mental health, whether that’s emotional reliance,” Simo said. “We’re very proud of the work that we’re doing here. It is a top priority for us, and we only release models when we’re confident that the safety protocols have been followed, and we feel proud of our work.”

The release of the new model came on the same day a new lawsuit was filed against the company alleging that ChatGPT’s interactions with a psychologically troubled user had contributed to a murder-suicide in Connecticut. The company also faces several other lawsuits alleging ChatGPT contributed to people’s suicides. The company called the Connecticut murder-suicide “incredibly heartbreaking” and said it is continuing to improve “ChatGPT’s training to recognize and respond to signs of mental or emotional distress, de-escalate conversations and guide people toward real-world support.” 

GPT-5.2 showed a large jump in performance across several benchmark tests of interest to enterprise customers. It met or exceeded human expert performance on a wide range of difficult professional tasks, as measured by OpenAI’s GDPval benchmark, 70.9% of the time. That compares to just 38.8% of the time for GPT-5, a model that OpenAI released in August; 59.6% for Anthropic’s Claude Opus 4.5; and 53.3% for Google’s Gemini 3 Pro.

On the software development benchmark, SWE-Bench Pro, GPT-5.2 scored 55.6%, which was almost 5 percentage points better than its predecessor, GPT-5.1, and more than 12% better than Gemini 3 Pro.

OpenAI’s Aidan Clark, vice president of research (training), declined to answer questions about exactly what training methods had been used to upgrade GPT-5.2’s performance, although he said that the company had made improvements across the board, including in pretraining, the initial step in creating an AI model.

When Google released its Gemini 3 Pro model last month, its researchers also said the company had made improvements in pretraining as well as post-training. This surprised some in the field who believed that AI companies had largely exhausted the ability to wring substantial improvements out of the pretraining stage of model building, and it was speculated that OpenAI may have been caught off guard by Google’s progress in this area.



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