Biden Administration Approves the Willow Project

On March 13th, the Biden Administration approved the Willow project, an oil drilling project in Alaska. ConocoPhillips, a Petroleum refineries company, is the creator of the Willow project, allowing them to hold decades-long oil drilling operations on Alaska’s North Slope in the National Petroleum Reserve that holds 600 million barrels of oil, having the potential to collect 180,000 barrels of oil a day. 

This project was initially approved by the Trump Administration in 2020, but the Biden Administration decreased the number of drill pads to three. ConocoPhillips have legal rights and leases to have drill sites in Alaska, so the Biden Administration felt that the courts wouldn’t have allowed the full restriction of ConocoPhillips. 

This project has created lots of backlash from Alaska natives as well as environmentalists. Nuiqsut city officials state that they would bear most of the environmental consequences and health risks from the oil drilling. An environmental activist group Earthjustice has been very outspoken about the detriments the Willow project could have on the environment. “We are too late in the climate crisis to approve massive oil and gas projects that directly undermine the new clean economy that the Biden Administration committed to advancing," said Abigail Dillen, president of Earthjustice. The Willow project is projected to release 9.2 metric tons of carbon pollution a year. Earthjustice is currently working on a complaint against ConocoPhillips and is compiling its legal reasoning as to why this drilling shouldn’t be allowed. 

Supporters of the Willow project claim that it will be extremely beneficial to the economy, providing more jobs, and increasing domestic energy, and the U.S. won’t need to be as reliant on foreign oil. Some Alaskan tribes are even optimistic about the new source of revenue in the area which will be an investment in their land. 

The Biden campaign ran with promises to reduce emissions and end new oil and gas drilling projects but went against this promise with the approval of the Willow Project. This is devastating news to environmentalists and the health of the planet. It is hard to be pleased with the economic benefits this brings to the country with the ultimate sacrifice of the future of the planet's health.  

https://www.cnn.com/2023/03/14/politics/willow-project-oil-alaska-explained-climate/index.html

https://www.npr.org/2023/03/13/1163075377/willow-drilling-project-alaska-approved-biden

https://www.washingtonpost.com/climate-environment/2023/03/17/willow-project-alaska-oil-drilling-explained/

Tennessee Bans Public Drag Performances

 

A bill was passed in Tennessee that prohibits drag performances in public and around children. The bill attempts to prevent “topless dancers, go-go dancers, exotic dancers, strippers, male or female impersonators” from being seen by children with a punishment of a misdemeanor and potentially a felony offense. 

A growing fear in the Republican party of drag shows being sexually explicit and inappropriate for children has partially fueled the passing of this bill. Yet the accusations of explicit content are often exaggerated to garner fear and a negative stigma of the LGBTQ+ community. This bill also enters a gray area as trans and non-binary people may be targets of discrimination and prosecution as many conservative people believe that trans and non-binary people are “male or female impersonators” as stated in the bill. 

This bill heavily infringes on the 1st amendment freedom of speech and expression and specifically targets the LGBTQ+ community while Republicans hide behind this clear violation of the Constitution with their value of “protecting the youth”

The LGBTQ+ community in America is obviously outraged at this unconstitutional piece of legislation and Emmy award-winning host of Rupaul’s Drag Race, Rupaul, released a statement on Instagram. “Drag queens are the Marines of the queer movement. Don’t get it twisted and don’t be distracted. Register to vote so we can get these stunt queens out of office and put some smart people with real solutions into government” said Rupaul. World of Wonder, the production company that produces Drag Race, has created a Drag Defense Fund, and this funds the ACLU’s progress toward LGBTQ+ rights. 

This law, along with other similar bills in other states, is frightening to America’s 1st amendment rights, yet people should not be hopeless as the LGBTQ+ community’s response has been strong, and prominent drag queens have spoken up, stating that they continue to resist attempts at taking away their rights.  Season 12 Contestant Jackie Cox states, “We’re going to keep fighting this fight. So stay strong, especially if you’re in one of those states where all these things are happening. I’m here to tell you that you can still do drag, you can still be your true self, whatever that is.”

https://www.npr.org/2023/03/06/1161452175/anti-drag-show-bill-tennessee-trans-rights-minor-care-anti-lgbtq-laws

https://variety.com/2023/tv/news/rupaul-anti-drag-bills-legislation-1235544678/ 

https://www.cnn.com/2023/03/02/politics/tennessee-ban-drag-show-performances-governor/index.html

https://www.capitol.tn.gov/Bills/113/Bill/SB0003.pdf

https://www.yahoo.com/entertainment/tennessee-drag-ban-already-causing-160914741.html?fr=sycsrp_catchall

Silicon Valley Bank Shut Down- Haywood Cooper

     

    In what NPR is calling the “second largest bank failure since 2008”, Silicon Valley Bank(SVB) reported a one billion dollar loss causing the FDIC to swiftly come in and take over the bank. SVB is a tech-startup lender and bank, which amounted to America's 16th largest bank holding around 209 billion dollars in assets across 17 branches in California and Massachusetts. They have funded companies such as Shopify, Pinterest, Fitbit, and many more companies. This was a simple bank run that happened on Friday afternoon causing mass panic and the eventual collapse of the bank. Back in 2021 during the height of Covid Tech, startups parked their money in SVB, so SVB decided to put the money into long-term bonds. As interest rates have gone up in time since then, the bonds have underperformed. This year as tech companies have seen slower growth, they have been withdrawing more money causing SVB to sell off its bonds at a huge loss. The “herd following”(NYT) and fast pace nature of SVB’s clientele is what experts believe triggered the bank run. Making long-term investments was not a smart decision for the bank who caters to risky depositors that want capital very quickly.

As The FDIC takes over, they have assured that all deposits below 250K are insured and accounts will have access to them by Friday. But according to NPR only 3% of the accounts at SVB have amounts that are below the 250K benchmark that the FDIC insures. In a statement from FDIC, they announced that all uninsured depositors will receive a certificate of deposit, and will receive their money once SVB’s assets have been sold. So far the government has not shown interest in buying the bank, leaving analysts to believe it will be absorbed into a larger bank and the issue being resolved shortly. Experts believe that this is an isolated incident unlike the events of 2008, all other banks are reporting strong capital. This comes as a major blow to tech startups across the country, and to the future of entrepreneurs. Many are questioning how tech startups in the future will find a bank that is willing to take them on. 

https://www.fdic.gov/news/press-releases/2023/pr23016.html

https://www.nytimes.com/2023/03/11/technology/silicon-valley-bank-failure-lessons.html

https://www.npr.org/2023/03/11/1162805718/silicon-valley-bank-failure-startups

Tensions between China and U.S rises

The relationship between China and the United States has been complex and fraught for decades, but recent events have strained it even further. From tensions over Taiwan and human rights abuses to cybersecurity concerns and trade disputes, there are many sources of conflict between these two global powers. 

The tumultuous relationship between China and the US is largely due to their conflicting views on Ukraine. The United States has recently alleged that China's involvement in Russia's military occupation of Ukraine can be proven by intelligence reports which claim that Beijing provides arms and other aid to bolster Russian forces. Such accusations have stirred a movement among lawmakers demanding more stringent action against China, with some even considering sanctions or retributive measures as necessary actions toward resolution.

In response to these allegations, China has denied any involvement in the conflict and accused the US of trying to stir up trouble. In a recent speech to the Chinese Congress, President Xi Jinping reiterated his commitment to peaceful coexistence and called on the US to "respect China's sovereignty and territorial integrity."

Another major issue in the US-China relationship is the ongoing COVID-19 pandemic. The US has accused China of not being transparent enough about the origins of the virus and of not doing enough to stop its spread. This has led to tensions over access to vaccines and medical supplies, as well as accusations of intellectual property theft related to vaccine research.

Apart from the more contemporary progressions, there exists a longstanding dispute between China and the United States concerning trade policies and economic matters. The US has alleged that China engages in inequitable trading practices as well as intellectual property misappropriation leading to tariffs imposition amongst other measures. Conversely, China argues against America's protectionist standpoints while accusing them of meddling with their internal affairs.

An issue causing significant worry is the escalating military competition between both nations. In an interview with The Guardian, US General Mark Milley conveyed apprehension regarding prospective conflict against China by stating that he had a premonition of war happening soon. Despite some specialists disregarding these remarks as exaggerated, they indicate mounting alarm in Washington about China's armed forces aspirations and their rising confidence in disputed areas like the South China Sea.

Despite the formidable difficulties, glimmers of optimism shine for the relationship between the United States and China. Dialogue remains possible as both nations express a readiness to address shared concerns like nuclear disarmament and climate change. Additionally, some encouraging strides have transpired in promoting trade cooperation; agreements have been reached recently that offer respite from tariffs on certain goods.

Overall it can be determined that the US-China conflict is a matter of great intricacy and diversity which may take considerable effort to resolve. The assortment of factors leading to this tension between two key players in global affairs suggests that finding common ground will not come easily. However, despite these challenges ahead lies an opening for collaboration through constructive communication and negotiation.

https://apnews.com/article/china-congress-2023-qin-us-1938a701c0d7a2114a18226962de4879

 

https://www.cnn.com/2023/02/28/politics/us-china-relations-ukraine-covid/index.html 

https://www.nytimes.com/2023/02/20/world/asia/china-russia-us-arms.html 

https://www.theguardian.com/world/2023/feb/02/us-general-gut-feeling-war-china-sparks-alarm-predictions

Recent mass tech layoffs

Within the past month, technology companies have experienced massive layoffs, cutting nearly 60,000 jobs. Major companies, such as Meta, fired 11,000 employees. Amazon cut about 18,000 jobs, and Google 12,000 laid off employees. Specifically, the majority of layoffs are done so with little prior notification to the workers. Many wake up to find out they’ve lost access to all work-affiliated accounts and seemingly have been selected to go unemployed at random.

Layoffs typically put companies in a negative light; however, because everyone is doing it, firing workers becomes socially acceptable. Companies grab on to this opportunity to reduce economic loss and turn the blame on macroeconomic factors.

During the pandemic, The Federal Reserve Board announced an emergency rate cut that lowered interest rates to near zero in order to sustain the economy. Companies such as Google are naturally pushed towards the notion of over-hiring workers, hindering the efficiency of profit, and being unable to maximize the utilization of available labor within the company.

In the present times, interest rates have started to rise back to normal levels. Technology companies that once aggressively hired workers now experience diminishing profit because its spending is not adequately generated back by revenue. Subsequently, many companies started getting rid of workers, which sparked the recent trend of massive layoffs.

Sources:

https://techcrunch.com/2023/02/16/tech-industry-layoffs/#:~:text=In%202023%2C%20layoffs%20have%20yet,from%20crypto%20to%20enterprise%20SaaS.

https://www.sfchronicle.com/tech/article/meta-plans-lay-thousands-17825316.php

https://www.cbsnews.com/news/tech-layoffs-sector-google-recession-2023-02-07/

https://www.cnbc.com/select/impact-of-fed-rate-cut-amid-coronavirus-concerns/

best-returns#:~:text=The%20last%20Fed%20hike%20raised,rates%20should%20continue%20to%20climb.

Attacks on US power grids

A series of attacks on US power stations throughout the years have invoked fear of vulnerabilities within the security of electricity infrastructure.

“We face an elevated threat from domestic violent extremists – that is, individuals in the United States who seek to commit violent criminal acts in furtherance of domestic social or political goals,” Assistant Attorney General Matthew Olsen said.

According to the latest statistics available from the Department of Energy, there has been a rapid upward trend of attacks on power facilities in recent years. There are many reasons electric power is targeted. Larger-scale attacks looked to catch the attention of the media and generate fear, while smaller attacks looked to commit robberies.

Damaging the power stations would mean turning off the electricity to the entire local area. By doing so, communication, transportation, markets, and other services are all disrupted.
Due to the lack of central authority to regulate the power system, it wasn't easy to improve the electrical system. This led to the creation of a new domestic terrorism unit in 2022.

As for 2023, the continuous attacks will likely create new security policies for energy infrastructures as the cost of improvements still remains a major obstacle.

Sources:

https://www.cnn.com/2023/02/04/us/us-power-grid-attacks/index.html

https://www.oe.netl.doe.gov/OE417_annual_summary.aspx

https://time.com/6244977/us-power-grid-attacks-extremism/

https://www.wsj.com/articles/power-grid-attacks-surge-and-are-likely-to-continue-study-finds-e7dfbc0b

https://www.utilitydive.com/news/substation-attacks-may-lead-to-new-energy-security-rules-in-2023-experts-s/640138/

Chicago Mayor Election

 Last Tuesday, the Chicago 2023 election for mayor took place. Paul Vallas and Brandon Johnson came out on top, advancing to the runoff election that will occur early next month. Vallas got the most votes, garnering 34%, while Johnson managed 20% of the total votes. What was really interesting, however, is who failed to clutch a spot in the runoffs: Lori Lightfoot–an incumbent and the first Chicago mayor not to receive a second term in four decades. 

Given Chicago’s liberal political landscape, the election isn’t between two parties like most are. Instead, both candidates are democrats; however, both still have very different views and goals for Chicago’s future.

Vallas is 69 years old and was also the only white candidate in the election for mayor. He is supported by the Chicago police union. Meanwhile, Johnson is a 46-year-old Black man, endorsed by many Chicago teachers. These divisions are reflected in their backgrounds, with Vallas being a more moderate Democrat, even having described himself as “more of a Republican” in the past, closely aligned with Chicago’s political and economic power brokers. On the other hand, Johnson is a much more progressive Democrat with experience as a public school teacher and from Austin, one of Chicago’s largest Black neighborhoods. Their beliefs and goals further highlight their differences. 

“Public safety is the fundamental right of every American,” Vallas said during his acceptance speech.

“It is a civil right, and it is the principal responsibility of government. We will have a safe Chicago, and we will make Chicago the safest city in America.”

Throughout Vallas’s career, he has made numerous attempts to privatize schools and cut down on teacher unions (noticeably the very opposite of Johnson’s goals.) However, it is clear that his most prominent goal is to fund and support the police force in Chicago. On his campaign website, he promises “suburbanites and tourists will no longer fear traveling downtown.” He plans to accomplish this by hiring around 2,000 more police officers. Vallas has also proved to have close ties with the police department before, having negotiated the city’s contract in 2021 with the police union, whose head, Jose Catanzara, notably defended the January 6 storming of the capital. These attempts at ensuring safety also line up with another goal of his that concerns civil rights and racial justice advocates and protesters: passing a public nuisance ordinance that could have the capability to punish people who “threaten, engage in, or promote looting, damage to property or violence” through prosecution and fines. 

“Tonight is about building a Chicago that truly invests in its people,” Johnson said during his victory speech. Johnson argued his strategy was “to get smart, not just tough” on crime.

Johnson’s more progressive goals are displayed through his advocation for policies that would, for example, tax multi-million dollar homes to source affordable housing for the homeless, end no-knock warrants, and reopen public mental health clinics (his efforts towards mental health have rewarded him with the support of local communities.) Such investments, he claims, would “de-escalate conflict and reduce violence.” As opposed to Vallas’s plans on placing extensive funding toward police and defense, Johnson has called for $1 billion in new investments in education, which would go towards training and job placement in the less-fortunate areas of Chicago. He has also pledged to cut “wasteful spending” in the city’s budget.

Although they fell short of a spot in the runoffs, in third and fourth place were Lightfoot and Jesus “Chuy” Garcia, each garnering 17% and less than 14% of the total votes, respectively. As the more progressive of the two remaining contenders for mayor, it is possible that Johnson will pick up Lightfoot’s votes in the South and West sides of the city. It is much more likely that Garcia’s votes will be split between Vallas and Johnson. If Johnson continues to lack support in Latinx neighborhoods, he could be seriously disadvantaged as Latinos could tilt to Vallas or stay home on election day. Still, there is a good chance that Latino progressives will join forces with the progressive Black candidate, creating more competition, even though Vallas begins with a 14-point edge over Johnson.

As we draw closer to the election, the odds are that we will see the candidates make some strong claims in an attempt to dissuade the public from voting for the other. It is likely Vallas will argue that Johnson is trying to “defund the police,” which Johnson has previously denied. Johnson has already made it clear that he will portray Vallas as a “closet Republican” that is too conservative to lead a liberal and Democratic city. The runoff election will take place on April 4. Until then, the citizens of Chicago will have to decide if they want a moderate or progressive Democrat, especially during a time of rising crime rates.

https://www.bloomberg.com/news/articles/2023-03-03/citadel-donors-unions-fuel-harshest-chicago-mayor-race-in-years

https://www.brookings.edu/blog/fixgov/2023/03/02/understanding-what-happened-in-the-chicago-mayoral-race/

https://inthesetimes.com/article/chicago-mayor-election-brandon-johnson-paul-vallas-lori-lightfoot

https://www.nbcchicago.com/chicago-mayoral-election-2023/what-to-know-about-chicago-mayors-race-runoff-election/3085475/

https://www.nprillinois.org/illinois/2023-03-03/state-week-chicagos-mayoral-runoff-election-is-set

February Employment Rates Rise Again

 

Last Friday, the important concern for investors and the Federal Reserve was whether the unexpected improvement in the January reading on the jobs market would persist in the February employment report. It was not anticipated that there will be another massive hiring boom, but the general trend of a strong labor market is expected to persist. The January jobs report claimed that the economy had supplied around 517,000 new jobs. This was a huge surprise to the markets which believed the federal reserve will keep higher rates for a larger duration and facilitate February’s prediction of an increase in employment of 200,000 in comparison to the 517,000 of January and an unchanged unemployment rate of 3.4%.

            Despite the predictions, The Labor Department’s Bureau of Labor Statistics claimed payrolls for the month increased by 678,000 and additionally, the unemployment rate was 3.8%. Just as the report claimed for January the employment rates have once again increased tremendously in February leading economists to believe the rate is getting closer to employment reports before the COVID-19 Pandemic. Analyzing the market, the statement raised the total amount of Americans who were employed, while it was still 1.14 million behind levels before the Pandemic. From October to December of 2021 Towards the end of 2021, there were 10.9 million unfilled positions, a record-high gap that left nearly 1.7 positions for every employee. Vacancies continue to be a major barrier to filling these positions. 

Additionally, the Bureau of Labor Statistics also recorded the national wage only rose by 1 cent per hour (0.03%) in comparison with the expected 0.05% gain which economists are led to believe that current inflation may be on its downfall soon. Senior economists for the job placement site Glassdoor claim, “This report indicates that the job market is healthy and resilient to the ebbs and flows of the pandemic.” Employment rates have been persistently coming back to fight the lows of the pandemic as the United States has seen an increase in employment of over 400,000 opportunities each month since June 2022. As more Americans return to being employed with the pandemic regulations and restrictions fading, economists are expecting strong job growth in the future. 

However, with the increase in employment rates investors today are left questioning when will the employment rate really begin to slow down. Senior economics and strategist Eric Winograd at Alliance Berstein says, “Until the pace of hiring slows significantly, the Fed[eral Reserve] won’t be able to think about pausing rate hikes.” A high employment data defying expectations is probable to convince the market to believe that the Fed will hike interest rates once again in July.

https://www.morningstar.com/articles/1142099/markets-brief-what-to-watch-in-the-february-jobs-report

https://www.cnbc.com/2022/03/04/jobs-report-february-2022.html

https://www.bls.gov/news.release/empsit.nr0.htm

https://www.nytimes.com/live/2022/03/04/business/jobs-report-february-2022

Elon Musk's "Master Plan Part 3"

        This past Wednesday, CEO Elon Musk stated, “There is a clear path to a sustainable-energy Earth. It doesn’t require destroying natural habitats. It doesn’t require us to be austere and stop using electricity and be in the cold or anything” at Tesla’s 2023 Investor’s Day; a presentation hosted in Austin Texas. Elon Musk argues that given the conditions, the Earth can actually support a society far larger than the 8 billion living today sustainably. The presentation featured his long-term plan for the company Tesla and reviewed brief details on new Tesla products.

Besides his plan, Musk revealed that Tesla will be increasing battery production for all Tesla electric vehicles and the company’s electrical storage system. Along with Drew Baglino, the senior vice president of Tesla’s powertrain and energy engineering sector at Tesla, Musk revealed the company’s ultimate desire to provide 20 million vehicles of electric capacity before 2030. The presentation also included an infographic highlighting a prediction of 1.31 estimated deliveries of electric vehicles with the additions of the plan to build new car and battery cell factories. 

Rebecca Tinucci, head of the Tesla Charging sector, provided statistics claiming the company only offered 9 terawatt hours of charging appliances, including the 40,000 Superchargers across the nation in comparison to the 4,000 terawatts of electricity the United States consumes annually. Tinucci also claimed that in addition to Tesla superchargers, half of the charging applianced are open to other vehicles, including non-Tesla automobiles. 

The presentation also called Musk’s attention to the demand of Tesla given the advancement of other competitors, to which Musk responded, “Demand is a function of affordability not desire… [and] even small changed in price have a big effect on demand.” Along with the significant drop in the price of Tesla’s best-selling “Model 3,” investors are anticipating a further reduction in prices for all Tesla products going forward into 2023 and even more anticipation awaiting Tesla’s “next-gen” vehicle, Musk announced. 

https://www.cnbc.com/2023/03/01/tesla-2023-investor-day-after-the-bell-master-plan-part-3-teased.html

https://www.forbes.com/sites/alanohnsman/2023/03/01/teslas-investor-day-is-long-on-time-short-on-useful-new-details/?sh=56c5781465bb

https://www.nytimes.com/2023/03/01/business/tesla-musk-investors.html

https://www.usatoday.com/story/money/cars/2023/03/02/tesla-investor-day-elon-musk/11373657002/

Another Train Derails in Ohio, Prompting Increased Scrutiny of the Rail Industry

Multiple Norfolk Southern train cars toppled on March 4 in Clark County, Ohio. (Bill Lackey / Springfield-News Sun via AP)

Thirty days after the devastating Norfolk Southern train derailment in East Palestine, Ohio, residents are still reeling from the environmental effects of the toxic chemicals released from the 50 cars damaged in the crash. But the company operating the train doesn’t seem to have learned their lesson. At around 4:45pm yesterday, Saturday March 4, another Norfolk Southern train derailed near Springfield, Ohio.

As a refresher, the February 3 train derailment caused a fire that eventually led to officials releasing toxic fumes into the air in order to prevent further explosion from the hazardous chemicals onboard, including vinyl chloride, which is known to cause a rare form of liver cancer after chronic exposure. Around 5,000 residents were evacuated, and although they have since been allowed to return to their homes, serious concerns persist surrounding the health risks of remaining in the area. On February 8, the Ohio Department of Natural Resources reported that 3,500 fish had died in the local streams. Additionally, local residents have posted pictures online of dead farm animals, and many have reported coughs, rashes, and other illnesses common to chemical exposure. The Environmental Protection Agency (EPA) has been monitoring the chemical levels in the water, soil, and air surrounding the area, and has reported no unusual or harmful levels despite these reports. Many are also concerned at the safety of the soil, as farming and livestock are major sources of income to residents in the area. On top of that, locals expressed anger at environmental authorities do to their delayed response to the situation; it took EPA administrator Michael Regan almost two weeks to tour the crash site, located only 20 miles from his state border.

Yesterday’s crash appears to have been far less dangerous to the local environment. Officials issued a precautionary shelter-in-place to nearby homes, but most of the 20 cars that derailed were empty boxcars. Only one car was of real concern to environmental officials, which contained polyvinyl chloride (PVC) pellets that have affected the soil, although reports claim they aren’t toxic. Officials have worked to clean up the pellets today to prevent anything other than surface soil from being contaminated. Arguably the most impactful result was that the crash left over 1,500 local Ohioans without power.

Despite the fact that the second derailment was much less harmful, citizens nationwide have begun raising concerns about the safety regulations at both Norfolk Southern and the American rail industry. Several lawsuits have been filed against Norfolk Southern in the wake of the derailments, and CEO Alan Shaw is set to testify in Congress on Thursday, March 9 about the East Palestine derailment. Pennsylvania Governor Josh Shapiro also sent a letter to Shaw after the first crash claiming that Norfolk Southern failed to immediately inform authorities on the amount of chemicals involved and the true and complete effects of these chemicals. He also claims employees were too hurried in turning to controlled release to manage the chemicals, and did not explore other, safer options. Employees of Norfolk Southern and the railroad industry have also expressed discontent in recent years surrounding cut backs on regulations and added hours, making them feel less safe and confident in their work. Security footage from Salem, Ohio, which is 20 miles away from East Palestine, shows the axel that eventually caused the derailment was already glowing, with flames underneath at least one car of the train, but the employees operating the train claim they tried to stop as soon as the warning system alerted them there was a problem. Several Congress members, including both Ohio senators, have discussed and/or proposed legislation that would tighten railroad safety regulations.

In the wake of these derailments, the intense scrutiny the railroad industry has fallen under has been met with widespread support. Four derailments in less than five months in Ohio alone (two occurred last fall) in frankly unacceptable, and a huge risk to the lives of anyone nearby, in both the short and long term. No one knows how the chemicals from the East Palestine derailment may be affecting the health of those in surrounding areas, and we may not know for another 50 years. As Senator Sherrod Brown (Ohio) states, “Ohio communities should not be forced to live in fear of another disaster”. The federal government is already cracking down on the management of Norfolk Southern, as well as the entire railroad industry. Many are beginning to question if the industry itself has been left largely alone for too long, and are urging their representatives to take action in Congress. Rail companies spent almost $25 million lobbying Congress on various pieces of legislation in 2022 alone, and have stopped antitrust bills from passing in recent years. Despite their best efforts, the profit-oriented intentions of these rail giants has become painfully clear to the public in the wake of these derailments, and even their deep pockets may not be enough to save them from facing the consequences.

https://apnews.com/article/ohio-train-derailment-bcc6198dfbde42feefdeca8f24ccaea8 

https://www.nytimes.com/2023/02/28/us/ohio-train-derailment-east-palestine.html 

https://www.nytimes.com/2023/03/05/us/ohio-train-derailment.html 

https://www.washingtonpost.com/nation/2023/03/05/springfield-ohio-train-derailment/ 

https://www.nbcnews.com/news/us-news/20-cars-norfolk-southern-train-derail-ohio-no-hazardous-materials-boar-rcna73435 

https://www.axios.com/2023/02/13/what-we-know-about-ohio-train-derailment 

https://www.commondreams.org/news/rail-industry-federal-lobbying#:~:text=Rail%20giants%20spent%20%2424.6%20million,parties%2C%20and%20political%20action%20committees

Biden’s Student Debt Relief Plan in the Supreme Court, and What the Decision Could Mean for the Future of Higher Education

Sen. Elizabeth Warren (D-Mass), at a student debt relief advocates' rally on Capitol Hill. (AP Photo/Patrick Semansky)

This past Tuesday, February 28, the Supreme Court heard oral arguments from two cases challenging the legality of President Biden’s federal student loan relief plan. 

The plan, announced in August 2022, would allow the government to forgive up to $20,000 in debt per borrower for Pell Grant recipients who met the income eligibility requirements, and up to $10,000 per borrower for everyone else who meets the income eligibility requirements. Over 40 million Americans are eligible for loan forgiveness, and over 26 million managed to apply in the month between the application opening in October 2022 and being closed due to the legal uncertainty in November of the same year. The Congressional Budget Office estimates that the plan, were its legality to be upheld, would cost the federal government an estimated $400 billion.

U.S. Solicitor General Elizabeth Barchas Prelogar and the Biden administration maintain that this plan is legal first under the Higher Education Act (HEA) of 1965, which broadly gives the federal government the ability to cancel student debt, and more specifically under the HEROES Act of 2003, which gives the Secretary of Education the ability to “alleviate hardships” federal student loan recipients could suffer in result of a national emergency, in this case the COVID-19 pandemic. Federal student loan payments have already been halted in the wake of the pandemic as of March 2020, and will not resume until either 60 days after the Supreme Court decision or early August, whichever comes first.

The first case is brought forth by six states - Arkansas, Iowa, Kansas, Missouri, Nebraska, and South Carolina - and argues that this plan exceeds the boundaries of the HEROES Act and therefore needs Congressional approval. Notably, the states also claim to argue on behalf of MOHELA, the Missouri student loan authority that Nebraska Solicitor General Jim Campbell claims is a “state-created, state-controlled public entity”. In the second case, two members of the public who are not eligible for the full $20,000 of loan relief, backed by the Job Creators Network Foundation, argue on the basis of equality and claim the government should have sought out public comment and opinion before carrying out the plan.

Despite these accusations, the main dispute in both of these cases is whether or not the plaintiffs have legal standing. As discussed in class, legal standing refers to the requirement that the plaintiff is negatively affected by the action they are challenging. In the case of the states, both conservative and liberal justices are skeptical of the states’ ability to argue on behalf of MOHELA due to Missouri’s “arm-length relationship” with the organization. Additionally, the Biden administration plans to add the costs of the plan to the federal deficit, which means there is no direct payment required from taxpayers. However, some have noted that repercussions may arise in the future through efforts to lower the federal deficit, which was around $1.38 trillion in the 2022 fiscal year. For the second case, data has proven that although Pell Grant recipients receive more aid from the government than other student loan recipients, they also have a harder time paying it back in the future, making the relief inequality reasonable. If the Supreme Court upholds the standing of at least one of the cases, legal experts are in general agreement that the Court’s conservative supermajority will vote to overturn the plan.

One aspect that many are keen to point out is that President Biden’s debt relief is a one-time loan forgiveness model. Post-secondary education still racks up tens of thousands of dollars in debt per student, and the current rise in inflation is showing no signs of making these debts any easier to repay. On top of this, the job market is becoming more and more reliant on college degrees, with many industries being made virtually inaccessible to anyone without a degree in the field. While many states have worked to provide more accessible college education, with 26 states, including California, offering some form of free community college, the future is still bleak for those hoping to continue their studies after high school. If the Supreme Court upholds President Biden’s debt-relief plan, it could potentially set in motion additional policy to make post-secondary education more accessible to everyone. However, the more likely result, the Supreme Court striking down President Biden’s plan, would further separate college education from the state, establishing a precedent that would provide little leeway for the federal government to manage the costs of college degrees in the future. More immediately, the Biden administration has admitted that they have few alternatives available were this plan to fail. Either way, the Supreme Court’s decision will set important precedent on the ability of the government to involve itself in postsecondary education, for better or for worse. 

https://www.cnbc.com/2023/02/28/biden-student-loan-case-argued-at-supreme-court.html 

https://www.cnbc.com/2023/03/03/when-will-supreme-court-rule-on-bidens-student-loan-forgiveness-plan.html 

https://time.com/6259839/student-loan-repayments-supreme-court/ 

https://www.cnn.com/2023/03/05/politics/biden-student-loan-forgiveness-scotus/index.html 

https://www.nytimes.com/2023/02/28/briefing/supreme-court-student-debt.html 

https://www.forbes.com/advisor/personal-finance/who-pays-for-student-loan-forgiveness/ 

https://www.businessinsider.com/how-will-supreme-court-rule-student-loan-debt-cancellation-standing-2023-3

https://fiscaldata.treasury.gov/americas-finance-guide/national-deficit/#:~:text=In%20FY%202022%20total%20government,from%20the%20previous%20fiscal%20yearhttps://www.forbes.com/advisor/student-loans/are-community-colleges-free/