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Saturday, 22 April 2023

DOJ probing Southwest Airlines holiday flight meltdown


The Justice Department has joined an ongoing Transportation Department probe into Southwest Airlines' December meltdown where some 16,000 flights were canceled, with regulators examining whether Southwest set schedules it knew it couldn't properly staff.

"The DOT team probing whether Southwest engaged in unrealistic scheduling of flights is also closely coordinating with DOJ and FAA," DOT spokesperson Kerry Arndt said in a statement to POLITICO. "DOT will leverage the full extent of its investigative and enforcement power to ensure consumers are protected and to hold Southwest accountable for any violations of the law."

Arndt said DOT's focus remains on Southwest's scheduling practices. The airline's cascading flight cancellations stranded passengers for days following severe winter weather that affected major airports from Dec. 21 to 26. Other airlines were able to recover relatively quickly from the storm's impacts, but Southwest was hampered by an outdated internal scheduling system and its own route network.

"As part of this investigation, DOT has conducted on-site audits of Southwest’s refunds and reimbursements records, met with numerous Southwest officials to assess the causes of Southwest’s system-wide winter holiday breakdown, and is examining tens of thousands of pages of documents," Arndt said.

Southwest Airlines and the Justice Department did not immediately respond to a request for comment.

Background: DOT Secretary Pete Buttigieg announced his agency's investigation into Southwest in January, focused on whether Southwest engaged in unrealistic scheduling that would be considered an unfair and deceptive practice under federal law. DOT also worked with Southwest to determine how many affected passengers were eligible for refunds under federal law.

Southwest CEO Bob Jordan previously said that “basically anybody” who dealt with flight issues between Dec. 24 and Jan. 2 was “refunded or [we] gave you a travel credit.” Jordan said that many Southwest passengers were given free tickets and rewards points, along with reimbursing customers who had to buy another airline ticket, stay in a hotel, buy a meal or hire a taxi.

In response to the December meltdown, Southwest investigated itself with the help of an outside consulting firm and promised to upgrade its winter infrastructure and implement software updates.

But Senate Commerce Chair Maria Cantwell (D-Wash.), whose panel oversees the airline industry, has continued to push Southwest for more details about how many passengers were involved, how many were issued cash refunds versus vouchers for future flights, how many were rebooked and when the airline plans to upgrade its internal systems that caused the debacle. Cantwell said Southwest has provided some information but not enough. Recently she has complained that Southwest was withholding details her office had requested.

And Southwest on Tuesday asked the Federal Aviation Administration to "pause" all flights for about 40 minutes due to what the airline said was "data connection issues resulting from a firewall failure." More than 2,000 flights were delayed across the country, though cancellations were minimal.

Both Buttigieg and Cantwell said they are keeping close tabs on Southwest following the latest inconvenience for travelers.

"This is another demonstration that Southwest Airlines needs to upgrade their systems," Cantwell said in a statement. Buttigieg added that DOT is "watching to ensure that Southwest Airlines takes care of all passengers who were affected by their technical problems."

What's next: Southwest reports its latest quarterly earnings next week.



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Ex-DeSantis donor cuts big check for Youngkin


Days after withholding his financial backing for Florida Gov. Ron DeSantis, billionaire GOP donor Thomas Peterffy is opening his wallet for Glenn Youngkin, the Virginia governor some in the party still hope will run for president.

Peterffy on Thursday wired a $1 million check to Youngkin’s political action committee, Spirit of Virginia, according to a person familiar with the transaction. The move comes less than a week after Peterffy told the Financial Times that he had put his support for DeSantis “on hold” because of the governor’s controversial positions on abortion and book bans, which have alienated some of those in the donor community and the mainstream wing of the party.

Peterffy’s abandonment of DeSantis reflects a broader period of difficulty for the Florida governor, with much of the Republican congressional delegation choosing to endorse former President Donald Trump over DeSantis and polls showing his support waning. Peterffy — one of the richest people in Florida — gave nearly $600,000 to DeSantis’ 2018 and 2022 gubernatorial runs.

Youngkin had paused his consideration for a 2024 bid after spending much of the midterm campaign season crisscrossing the country for Republican candidates. But over the last few weeks he has drawn attention from major donors while fundraising for his PAC, which is planning to spend money in the upcoming Virginia state legislative elections.

Youngkin last Friday attended a lunch in Palm Beach, Fla., hosted by retired Smithfield Foods executive Joe Luter and his wife, Karin. That evening, he attended a reception at the Naples, Fla., residence of ex-GOP Rep. Francis Rooney, a former ambassador to the Holy See, which was attended by more than 50 people. On Thursday, Omni Hotels and Gold’s Gym owner Bob Rowling hosted an event for Youngkin in Dallas.

Rooney said Youngkin did not bring up the 2024 race, nor did any of the attendees ask him about it.

“He stays on message. He talks a lot about what he’s doing in Virginia, and then he’ll mention that a lot of these same things apply anywhere and even nationally,” Rooney said.

It is far from certain whether Peterffy’s withdrawal signals a broader loss of financial support for DeSantis. A pro-DeSantis super PAC, Never Back Down, has reported that it has already raised $30 million — a sum that has allowed the group to begin airing TV ads, sending mailers and set up field programs in key primary states. DeSantis’ state-based political organization has more than $85 million that is expected to be transferred to the super PAC, and he has drawn support from an array of major givers who would like to see the party move on from Trump.

The list of those Youngkin met with in Dallas included prominent GOP fundraiser Roy Bailey, who formerly chaired Trump’s finance committee but who is planning to support DeSantis should he run. Bailey praised Youngkin as a “red-hot, bright shining star for the future,” but said he got “the sense that he’s totally focused on the state of Virginia” rather than running for president.

“I kind of see him as a great athlete who knows he has the ability to do great things but is smart enough and patient enough to do it in the right way,” Bailey said.



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Friday, 21 April 2023

GOP to host second presidential debate in California


The GOP will hold its second presidential primary debate of the year at the Ronald Reagan Presidential Library in Simi Valley, Calif., the chair of the Republican National Committee is expected to announce on Thursday.

The chair, Ronna McDaniel, is to make the announcement during a Thursday evening speech at the library, according to a person familiar with the remarks. Her speech is focused on the future for the party heading toward the 2024 election.

Republicans have previously announced that their first debate will be held in Milwaukee in August, and that it would air on Fox News. McDaniel is not expected to specify when the second debate would be set for, or which outlet would air it.

The RNC has been entertaining pitches from an array of networks that are interested in airing the debates — ranging from conservative outlets like Newsmax to mainstream ones like CBS and NBC. The committee has also been working behind the scenes to determine what the thresholds should be for candidates to qualify to appear on the debate stage.

The Reagan Library has played host to GOP primary debates before, including in 2015, when it featured 11 candidates running for the party's nomination — including then-candidate Donald Trump.



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‘Pissed off’: Rutgers unions mull resuming strike amid mounting frustration over finalizing contract


Rutgers University faculty unions are expressing frustration with the pace of finalizing contract negotiations with the university — with a possible strike resumption looming.

Rutgers resumed classes on Monday after a historic faculty strike which included 9,000 workers in three unions, impacting Rutgers’ approximately 67,000 students. Faculty unions and Rutgers officials negotiated in the Statehouse for five days after Gov. Phil Murphy personally intervened.

But while the two sides reached a “framework” deal, unions have described the Rutgers University administration as being slow-moving on finishing it since negotiations resumed in New Brunswick.

“We got back to New Brunswick and it's been the same tricks ... slow bargaining, not responding to critical demands, playing whatever foolish stupid games they've been playing,” Todd Wolfson, vice president of the Rutgers AAUP-AFT, said in an interview. “So yes, we are pissed off. And we are asking ourselves what we need to do and what's going to need to happen before the semester ends in order to get the contract we need to get.”

Now, with the strike suspended — but not permanently over — union leaders are discussing going back to the picket line. Amy Higer, president of the Rutgers PTLFC-AAUP-AFT, which represents part-time lecturers, said it is “possible” a strike resumes — although she said it was hard to gauge how likely it is with such a fluid situation.

“We're kind of feeling like the old intransigence is back now that we're back in New Brunswick,” she said in an interview. “We could resume the strike — we reserve that right. As workers at Rutgers we didn't end the strike. We just suspended it. And it was conditional.”

The possibility of a strike resumption comes as students wrap up the academic year with final exams on the horizon. In a statement, Rutgers University said “we are coming closer to agreements every day.”

“Our focus right now is on reaching an agreement beyond the framework agreed to on Friday and supporting our students' continued academic progress," Rutgers spokesperson Dory Devlin said in a statement.

At a board of governors meeting Thursday, Rutgers President Jonathan Holloway made passing reference to the situation, saying "we continue to negotiate contracts with many labor unions at Rutgers, including final details on the frameworks we agreed to last Friday with faculty unions that were on strike."

The governor’s office and Rutgers announced a framework deal — which they said brought the strike to an “end” — early Saturday morning. The broad strokes of the agreement included increased pay for adjunct professors, job security for adjunct and non-tenure-track faculty and multiyear university support for teaching assistants and graduate assistants.

In interviews, though, union leaders underscored that the framework is not tantamount to a tentative agreement. Higer said that university management has moved the goalpost on how many credits adjunct professors need to teach to advance ranks. Wolfson said that Rutgers has not responded to proposed language on providing five years of guaranteed funding for teaching assistants and graduate assistants.

Diomedes Tsitouras, the executive director of AAUP-BHSNJ, which represents workers at Rutgers’ health sciences schools, said that talks have been slow-moving since resuming in New Brunswick. The union representing medical faculty has reported having more outstanding issues than the other two unions.

“It's been at a snail's pace,” Tsitouras said in an interview “And it doesn't seem like there's been any sort of rush to get things done.”

Higer, of the adjunct union faculty, said that another intervention from the governor might be needed.

“I think it's in his interest to make sure that [Rutgers] follows through on their commitment,” Higer said. “I don't know if he's going to play a role now – he might need to if he wants to see this done.”



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Jan. 6 defendant fired on deputies ahead of expected arrest, court records show


A Jan. 6 defendant wanted on misdemeanor charges opened fire at sheriff’s deputies last week as they checked on him ahead of his expected arrest, triggering a lengthy standoff, according to newly unsealed court filings.

Deputies from the Dallas-area Hunt County Sheriff’s Office indicated that they were dispatched to the home of Nathan Pelham on April 12 for a “wellness check” after his father warned he was a suicide risk and possessed a gun. After trying to coax Pelham to stand down for hours, sheriff’s deputies and the FBI were unable to arrest him that day. He was instead arrested on Tuesday.

Prior to the standoff, Pelham faced charges for his role in the Jan. 6 breach of the Capitol. Charging documents in that matter depict Pelham wearing goggles and a neck gaiter before entering the Capitol for about seven minutes on Jan. 6, 2021. Two months later, he was stopped at the Canadian border in Michigan and admitted to authorities that he had been in the Capitol.

Now, Pelham is facing a felony charge that could result in years of jail time for allegedly firing a 9mm pistol in the direction of deputies.

The sheriff’s deputies indicated that when they arrived at his house, Pelham sent his young daughter outside before he began firing gunshots.

“After putting the child in the patrol car, Deputy J.W. heard gunshots coming from inside the residence,” according to the newly revealed charging documents. “Deputy J.W. reported that the gunshots were spread out in time and that they were not towards the HCSO personnel. Deputy J.W. moved his patrol car away from the front of the residence for additional safety.”

The deputy who first said he shielded Pelham’s daughter arrived at about 8:40 p.m. An hour later, according to the filings, Pelham’s father arrived on the scene and another shot was fired.

“[T]he bullet from this gunshot came in so close proximity to myself that I could hear the distinct whistling sound as the bullet traveled by me and then strike a metal object to my right side,” one of the deputies, identified only as J.W., reported.

An FBI agent arrived on the scene at about 10:40 p.m. to help put Pelham under arrest. He said he heard another six to seven gunshots fired.

The court documents indicate that Pelham has a 2003 Texas felony conviction, which barred him from being in possession of a firearm.



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Manchin grills Granholm over 'budget busting' electric vehicle rules


Sen. Joe Manchin accused the Biden administration Thursday of "liberalizing" Congress' efforts to stimulate sales of electric vehicles — and warned Energy Secretary Jennifer Granholm that the president's approach could send money and jobs to China.

It was the West Virginia Democrat's latest attack on the administration's handling of the sweeping climate bill that Manchin helped write.

Manchin, who chairs the Senate Energy and Natural Resources Committee, told Granholm at a hearing that President Joe Biden's implementation of the Inflation Reduction Act could "bust the budget" and go far beyond the spending forecast that Congress relied on last year.

He specifically accused the administration of loosening Congress' mandate that electric vehicles must be made with domestically produced parts and minerals to receive $7,500 tax incentives. As a result, he said, many more EVs with foreign-sourced parts will claim the tax break, and jobs will go overseas.

Manchin told Granholm he had not believed that Congress needed to include the EV tax credit in Democrats' climate law at all. But "if we're going to do it, let's get something for it," he said, referring to the law's incentives for automakers to move their supply chains to the United States or its trading partners.

"If they don't have to come, they're going to take it somewhere else cheaper and easier to get," Manchin said. He added, "[It] could probably be China coming through the back doors."

Granholm denied that would happen, saying the administration is likely to include China in a list of "foreign entities of concern" whose vehicle parts and components would not be allowed to qualify for the tax credit.

The Treasury Department is expected to decide later this year which countries to place on the list.

Manchin also took particular aim at the Biden administration's classification of certain foils, powders and other components as processing under Treasury's guidance. By classifying the powders as “critical minerals,” rather than “battery components,” the Treasury has avoided placing even more severe restrictions on vehicles eligible for the tax credit.

Granholm said the Energy Department had advised Treasury on issues relating to energy definitions, including for the EV tax credit. But she said DOE applied the "exact" definition for processing that Congress has used in the bipartisan infrastructure law passed in 2021.

"They didn't want to go back and re-do what Congress had just passed," she added.

But Manchin responded that the IRA has specific language on the issue, and that DOE should not have turned to the earlier infrastructure bill.

"Y'all broke the law by advising, referring back to the bipartisan infrastructure bill. It had nothing to do [with it]. This is the IRA we passed," said Manchin, who has threatened to sue the administration over its implementation of the tax credit.

"I think there is a difference of opinion among the lawyers about what the actual definition [is]," Granholm replied.

"Depends on who's paying the lawyers," Manchin quipped.

Manchin has also targeted EPA's new proposed tailpipe emissions rules, which the Biden administration says will drive a dramatic increase in EV sales in the next nine years. Manchin said in a statement this week that the proposed rules were a “Trojan horse" whose timelines would increase the United States' reliance on minerals and technologies controlled by China, and he said that he would support Congress overturning them.

House Republicans introduced legislation Wednesday that would raise the federal debt limit in conjunction with a series of policy changes — including cutting the IRA's green energy tax credits.



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The global confusion over new AI rules


The lightning-fast arrival of chatbots and other eerily human AI tools is triggering a sudden, anxious call for new rules to rein in a technology that's freaking a lot of people out.

Right on cue, these proposals — many of which span national borders — are arriving. But they are also raising a big global question: Can any of them work together?

This week, European politicians called for new rules for so-called generative AI— the technology behind the likes of ChatGPT and Google's Bard — and also urged President Joe Biden and Ursula von der Leyen, his European Commission counterpart, to set up a global summit to develop global standards.

In the U.S. Senate, Majority Leader Chuck Schumer announced plans last week to create a so-called "AI Framework" to boost oversight over the fast-evolving technology — all while giving companies the freedom to keep innovating.



They’re joining a cavalcade of existing AI rulebooks that range from UNESCO's Ethics of AI agreement to the Council of Europe's Convention of AI to more focused proposals like last year's White House "Blueprint for an AI Bill of Rights," as well as the European Union's AI Act.

There are now more national AI strategies than you can shake a stick at, including China's burgeoning AI rulebook. And the voluntary AI Principles from the Organization for Economic Cooperation and Development (OECD) are now almost five years old — a lifetime in terms of how artificial intelligence is developing.

Not to be outdone, American and European officials, including Secretary of State Antony Blinken, Commerce Secretary Gina Raimondo and EU Commissioner for Competition Margrethe Vestager, will gather next month to promote shared guardrails for so-called "trustworthy AI," or an acknowledgement that Western democracies must work together when defining how this technology should be used.

The policymakers behind this effort are trying to sound reassuring that some kind of global, or at least Western, harmony on artificial intelligence rules will prevail.

"Companies on both sides of the Atlantic can use these tools to ensure that they can comply with requirements on both sides," Alejandro Cainzos, a senior aide to Vestager, Europe's digital chief, said in an interview soon after U.S. and EU officials met in Washington late last year to discuss the AI rules. "We have different systems, but the underlying principles will be well-aligned."

“You’ve got people still fighting around the edges”

But as quickly as such proposals are published, doubts are arising about whether any kind of international standard for AI is even possible. The answer is important — and will likely define the geopolitics engulfing technology in the decade to come.


Artificial intelligence, like many new technologies, crosses borders as easily as the internet does, and is already embedded across society in ways that were unthinkable years, if not months, ago.

Yet countries' laws and rulebooks aren't so jet-setting. That's leading to increased tension in how leaders grapple with the rise of AI that is playing out — in real time — in efforts to create a global consensus about what rules are needed to calm everyone's nerves.

"I'm just really afraid that the OECD countries need to get past arguing about small things and look at the bigger picture," said Audrey Plonk, head of the OECD's digital economy policy division, whose team developed the group's AI Principles, arguably the most comprehensive Western playbook for how to approach the technology.

Many countries, the OECD official told POLITICO, have different views on how to regulate AI, and such friction — some want immediate government intervention before the technology is rolled out, others want to see how the market develops before stepping in — is slowing down coordination on what should be done now.

"If we don't move in the same direction on something as important as this, we're all going to suffer," added Plonk, whose team just created a multi-stakeholder group to address the future policymaking implications of AI. "You've got people still fighting around the edges."



Shared language, different approach

Fortunately for the rulemakers, many of the existing, most voluntary, AI rulebooks have a lot in common. Most call for greater transparency in how AI decision-making is made. They demand stronger data protection rights for people. They require independent oversight of automated decision-making. The goal is to let people know when they are interacting with AI, and give policymakers and the general public greater clarity about how these systems work.

But some, including the EU's AI Act, which has been engulfed in political wrangling for more than two years, outlaw specific — and ill-defined — "harmful" use cases for the technology. The European Parliament is still finalizing its draft of those rules, and then monthslong, if not yearslong, negotiations will be needed before the legislation is complete. Officials warn a deal won't be done well into 2024.

Others like proposals from the United States, United Kingdom and Japan, which plans to use its G-7 presidency this year to push for greater collaboration on AI rulemaking, prefer a more hands-off approach.

Such differences mean that while most countries agree that the likes of accountability, transparency, human rights and privacy should be built into AI rulemaking, what that actually looks like, in practice, still varies widely.

The problem comes down to two main points. 

First: different countries are approaching AI rulemaking in legitimately different ways. The European Union mostly wants a top-down government-led approach to mitigate harms (hence the AI Act). The U.S. would prefer an industry-led approach to give the technology a chance to grow. Complicating matters is China, whose fast-paced AI rulemaking — mostly to give the Chinese Communist Party final say over how the technology develops — is based on the prism of national and economic security.


Second: ChatGPT and its rivals have set off a separate, but related, call for new oversight specifically aimed at generative AI — in ways that overlap with existing regulation that could hold this technology to account without the need for additional rulemaking.

Case in point: Schumer's proposed AI framework and the open letter from European politicians leading on the bloc's AI Act.

Both efforts name-checked the current AI craze as a reason to do something to rein in the technology's potential excesses. But given there are already too many international proposals on what to do with the technology, what's missing, still, are the finer points of policymaking required to go beyond platitudes around accountability, transparency and bias to figure out how that actually plays out into a cross-border set of enforceable rules.

What about ChatGPT?

Others even question if generative AI needs new rules in the first place.

For Suresh Venkatasubramanian, director of Brown University's Center for Tech Responsibility and co-author of the White House's "Blueprint for an AI Bill of Rights," it's unlikely ChatGPT would pass existing standards — either domestic, regional or international rules — for AI because of the lack of transparency about how its so-called natural language processing, or complex data crunching, actually works.

Instead, policymakers should focus on building out the specifics of existing rulebooks, and work on greater international collaboration that can provide at least some form of baseline rulebook — and not get caught up in the latest ChatGPT hype train.

"If we focus on the point of impact, focus on where the systems are being used, and make sure we have governance in place there — just like we have wanted all this time — then, automatically, generative AI systems will have to be subject to those same rules," said Venkatasubramanian.



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