States Will Soon Face Huge Penalties for Their Food Stamp Mistakes


President Donald Trump pushing a shopping cart with food inside | Illustration: Midjourney

More than one out of every $10 in federal food stamp payments was made in error last year—and states with high fraud rates will soon be paying a hefty price.

The latest figures from the U.S. Department of Agriculture (USDA) show that payments made through the Supplemental Nutrition Assistance Program (SNAP), otherwise known as food stamps, were rife with waste once again in 2025. Though the figures vary widely from state to state, the USDA calculates that 10.62 percent of all food stamp payments were made in error—a slight decrease from the 10.93 percent error rate recorded in 2024.

Overpayments are about seven times as common as underpayments, according to the USDA data.

“The report confirms what has long been true: SNAP is structurally prone to waste, fraud, and abuse, and the states running it have too little financial incentive to fix it,” write Romina Boccia and Tyler Turmin, a pair of budget policy experts at the Cato Institute.

Indeed, the fundamental flaw in the food stamp program has long been its dual nature. The federal government provides all of the funding, but state governments get to administer the benefits. That’s likely part of the reason why food stamp enrollment, spending, and error rates have skyrocketed in recent years, even though federal poverty rates have remained flat. This is the fourth consecutive year that the improper payment rate has exceeded 10 percent. As recently as 2013, the national error rate was a mere 3.2 percent.

But there is a big change coming, and it could mean that some states are on the hook for huge penalties if their food stamp error rates continue to soar.

Thanks to a provision included in the One Big Beautiful Bill Act (OBBBA), the sprawling tax bill that President Donald Trump signed into law one year ago this month, some states might be required to fund a portion of SNAP benefits from their own budgets. That requirement kicks in next year, and it will apply to states that had error rates in excess of 6 percent in the previous year. The amount that states will have to cover will depend on their error rates, with a maximum obligation of 15 percent for states with error rates over 10 percent.

Only nine states—Idaho, Iowa, Kentucky, Nebraska, South Dakota, Utah, Vermont, Wisconsin, and Wyoming—had error rates below the 6 percent threshold in 2025, according to the USDA data.

It’s too soon to know how big those state-level obligations will be, because it is 2026 data that will determine what they must pay in 2027. However, the Center on Budget and Policy Priorities, a left-leaning think tank, crunched the 2025 error rate figures and concluded that states would owe roughly $9 billion in total. Many states would owe over $100 million.

That’s a lot of money, and some states are already freaking out about it.

Stephen Cha, commissioner of the New Jersey Department of Human Services, for example, has called for Congress to block the provision requiring states to pick up part of the tab. “These provisions create real uncertainty for States and benefit recipients alike, and the potential for significant future costs,” he said in a statement. “Penalizing states will do nothing to improve payment accuracy or meaningfully address waste, fraud, or abuse.”

Evidence suggests that’s simply not true.

In fact, the threat of actually being held accountable for not wasting federal taxpayers’ money has caused a number of states to change how their food stamp programs operate. A survey conducted earlier this year by the Urban Institute and the American Public Human Services Association found that states are “making significant operational investments to improve payment accuracy.” That includes “expanding training efforts, strengthening quality assurance functions, and adopting new technology and data tools to identify and prevent errors.”

Even in New Jersey, the new rule seems to be having an effect. The Garden State’s error rate declined from 14.33 percent in 2024 to 6.86 percent in 2025. Despite Cha’s complaints, he told state lawmakers during a May budget hearing that his office was working with county offices to reduce error rates by “implementing additional quality control protocols.”

Without the new cost-sharing requirement, would those efforts be happening? It seems unlikely.

Additionally, the survey shows a limited risk of disruption to SNAP recipients. Only 11 percent of states said there is a possibility that they could withdraw from SNAP as a result of the new costs, and 5 percent said they might need to temporarily pause SNAP operations.

Both seem like empty threats, since they would require state officials to build new food stamp programs that they would have to fully fund out of their budgets. That would be far more costly than having to fund a relatively small portion of the total cost to run SNAP.

The new requirements in the OBBA are far from perfect. Some states with exceptionally high error rates—hello, Alaska—got a special exemption from having to pick up part of the cost right away. That’s not fair to federal taxpayers and creates a perverse incentive for states to make their error rates worse before the new rule kicks in. Overall, however, this seems like a win for fiscally responsible federalism. Food stamps and other welfare programs really should be fully (or mostly) funded at the state level, particularly if they are going to be administered by state officials.

Despite the complaints about the new rules for SNAP, the policy seems to be doing as it was intended.

The post States Will Soon Face Huge Penalties for Their Food Stamp Mistakes appeared first on Reason.com.

from Latest – Reason.com https://ift.tt/6fWma1D
via IFTTT

Watch: New Video Shows McConnell Wheeled Out On Stretcher After June Cardiac Emergency At D.C. Home

Watch: New Video Shows McConnell Wheeled Out On Stretcher After June Cardiac Emergency At D.C. Home

New video shows emergency responders loading Sen. Mitch McConnell (R-Ky.) onto a stretcher and into an ambulance outside his Capitol Hill residence on the morning of June 14, the same day the longtime Senate Republican leader was hospitalized.

The neighbor-recorded footage, first published Friday by CNN, depicts emergency vehicles – including multiple ambulances and a fire truck – clogging the street near McConnell’s home as first responders wheel a person identified by witnesses as the 84-year-old senator toward an ambulance. The individual’s face is not clearly visible in the video, but their lower legs and feet were seen under an orange blanket.

Dispatch Audio Cited Cardiac Arrest And CPR

The video adds new weight to emergency dispatch audio previously obtained by an independent journalist and reported by CNN. In that recording, responders were dispatched to McConnell’s known address for an “unconscious” person experiencing a “cardiac arrest,” with a paramedic heard saying “CPR in progress.”

A neighbor who spoke with CNN said officers described it only as a “medical emergency” at the time but confirmed through another eyewitness that the person on the stretcher was McConnell. No sirens were used as the ambulance left the scene.

Prolonged Hospitalization Raises Questions

McConnell has remained hospitalized for nearly a month. His office has released only terse updates saying he is “receiving excellent care” and “continues his recovery,” with few specifics on his condition or prognosis. The opacity has fueled rampant speculation in Washington political circles and on social media.

Some Republican allies, including Senate Majority Leader John Thune and commentator Scott Jennings, have said they’ve spoken with McConnell recently and described his voice as strong. Still, the lack of detailed medical disclosures stands in contrast to the public nature of the emergency response now coming into view. Others mocked it as covering up for ‘weekend at Mitch’s.’

The incident marks the latest health scare for McConnell, who has a well-documented history of falls, concussions and other episodes. As a towering figure in Senate Republican politics for decades, his extended absence continues to ripple through the chamber and the broader party.

McConnell’s office declined to comment on the new video or audio.

This story is developing.

Tyler Durden
Fri, 07/10/2026 – 11:45

via ZeroHedge News https://ift.tt/clQYMD7 Tyler Durden

RFK Jr. Plans To Create A List Of Injuries Caused By COVID-19 Vaccines

RFK Jr. Plans To Create A List Of Injuries Caused By COVID-19 Vaccines

Authored by Zachary Stieber via The Epoch Times,

Health officials are proposing a plan to clarify which COVID-19 vaccine side effects would be eligible for government financial compensation, according to a new notice.

Health Secretary Robert F. Kennedy Jr. in Minneapolis on May 21, 2026. David Berding/Getty Images

The Department of Health and Human Services (HHS) and one of its divisions said in a description of a proposed rule released on July 1 that they plan to establish an injury table for COVID-19 vaccines through the Countermeasures Injury Compensation Program (CICP).

“The Table will list and explain injuries that, based on compelling, reliable, valid, medical, and scientific evidence, are presumed to be caused by covered COVID-19 countermeasures, and set forth the time periods in which the onset of these injuries must occur after the administration or use of these covered COVID-19 countermeasures,” a summary of the rule, which has not been made public, stated.

COVID-19 vaccines fall under the CICP because previous health secretaries declared and extended emergency declarations for COVID-19, which opened up the option of emergency clearance of vaccines and other countermeasures under the Public Readiness and Emergency Preparedness Act.

Health Secretary Robert F. Kennedy Jr., who just announced that he was ending the emergency declaration, is authorized under the declarations to provide benefits to people injured by the vaccines under the act, HHS officials noted in the proposal summary.

“Under the leadership of Secretary Kennedy, HHS is restoring transparency and accountability because the American people deserve clear, evidence-based information about both the benefits and the known risks associated with medical countermeasures,” an HHS spokesperson told The Epoch Times in an email.

The spokesperson said that more information will be available when the notice is published in the Federal Register.

Aaron Siri, Kennedy’s former lawyer, wrote to Kennedy in 2025, urging him to create a COVID-19 vaccine-injury table. He pointed to the readiness and preparedness law, which states that the health secretary “shall by regulation establish a table identifying covered injuries that shall be presumed to be directly caused by the administration or use of a covered countermeasure.”

An injury table would help people injured by vaccines apply successfully to the congressionally created program, which requires “compelling, reliable, valid, medical, and scientific evidence” that an injury was a direct result of a countermeasure, Siri wrote on behalf of the Informed Consent Action Network, which advocates for government transparency and change.

A well-constructed injury table is needed for the CICP,” Richard Hughes IV, a former Moderna executive who is representing health groups in litigation against the administration that has halted some of its changes to vaccine guidance, told The Epoch Times in an email. “The real question is whether this administration would promulgate such a table or weaponize it to further platform misinformation.

Dr. Joel Wallskog, who suffered the neurological disorder transverse myelitis and other issues from COVID-19 vaccination and has sued the government over the CICP, told The Epoch Times in an email that the HHS proposal “is more appearance than substance.”

It appears to do little more than streamline the process for the relatively small number of individuals whose injuries – primarily anaphylaxis and myocarditis/pericarditis – are already recognized under the current system,” added Wallskog, also the co-chair of the React19 nonprofit, which offers support to people injured by COVID-19 vaccines. “For everyone else who has been denied, nothing changes.”

Erica Samp, who says she was injured by a COVID-19 vaccine, said in a post on X that she supported the plan but that she’s watching to see what details are included, including the covered injuries.

The CICP is both administered and adjudicated by HHS officials. It has compensated some people who have said COVID-19 vaccination caused health issues, but rejected others, including people such as Wallskog, whom doctors diagnosed as being injured by COVID-19 vaccines, The Epoch Times previously reported.

The CICP has, through June, compensated 60 COVID-19 vaccine injury claims, nearly all for myocarditis, a form of heart inflammation. The average compensation has been $4,000, aside from a few large payments, and about 99 percent of applications have been rejected.

The National Academies of Sciences, Engineering, and Medicine said in 2024 that COVID-19 vaccines definitely cause myocarditis and shoulder injuries, but that other possible harms could not be conclusively linked to the shots.

Some outside organizations, such as React19, have said that the available evidence supports a link between the vaccines and additional problems.

Tyler Durden
Fri, 07/10/2026 – 11:25

via ZeroHedge News https://ift.tt/56bREWP Tyler Durden

Mitsubishi Motors Joins Physical AI Race With Humanoid Robot Production Deal

Mitsubishi Motors Joins Physical AI Race With Humanoid Robot Production Deal

Mitsubishi Motors shares surged as much as 17% in Tokyo on Friday after the automaker unveiled a deal with the University of Tokyo startup Highlanders to mass-produce humanoid robots, signaling a push beyond its core automotive business and reinforcing a broader trend we have highlighted that could sweep across the global auto industry.

Highlanders signed an MOU with Mitsubishi Motors to develop humanoid robots for automotive factories and mass production at Mitsubishi’s Kyoto plant as early as 2027. Early production runs could amount to 1,000 per month. 

The Japanese automaker plans to test the humanoids in its own facilities to address labor shortages and increasingly complex manufacturing, using operational data to guide a broader rollout. Mitsubishi has already invested in Highlanders.

Citi analyst Arifumi Yoshida wrote in his first take that the partnership between Mitsubishi Motors and Highlanders is “positive” for the automaker’s stock, as it signals a push into physical AI:

After the July 9 market close, Mitsubishi Motors announced an MOU with Short-Term View: Upside Highlanders, a University of Tokyo startup, for the mass production of Price (09 Jul 26 15:30) ¥330.6 humanoid robots at its Kyoto plant. Production will begin in early 2027, Target price ¥420.0 with monthly production capacity of c1,000 units prepared. Highlanders will handle development and sales, while Mitsubishi Motors will leverage Expected share price return 27.0% its automotive production expertise in quality and other areas to provide Expected dividend yield 3.0% production and development support. Mitsubishi Motors has invested in Expected total return 30.1% Highlanders and is considering additional investment. The company plans Market Cap ¥442,459M to utilize the robots in Mitsubishi Motors factories while marketing them US$2,742M as Japan-originated physical AI products to diverse industries domestically and internationally. Multiple inquiries have already been received. We believe the stock market will welcome this initiative to expand its automotive business expertise into physical AI, which has also been earmarked as a national priority.

Mitsubishi Motors shares in Tokyo closed up 10% on Friday but remain at 2022 lows.

In recent weeks, Bernstein analyst Eunice Lee pointed out, “OEMs are entering humanoid robotics to boost productivity and unlock new revenue streams.” Read the note here.

Lee noted, “Automakers have several advantages across hardware, software, and scale. There is significant overlap between vehicle and humanoid components—motors, reducers, sensors —as well as manufacturing.”

It appears that Mitsubishi Motors is following other automakers, including Tesla and several Chinese companies, in making a big push into humanoid robotics development and mass production. EVs and humanoid robots share similar component ecosystems, manufacturing processes, and supply chains, giving automakers a potential advantage in scaling up production.

Here is a complete overview of the automakers developing humanoid robots:

Humanoid production ramps globally begin next year. Read report.

Does this suggest that legacy US automakers will eventually partner with humanoid robotics firms? What about Rivian and Lucid? The race for physical AI is underway.

Tyler Durden
Fri, 07/10/2026 – 11:05

via ZeroHedge News https://ift.tt/BH2LJjM Tyler Durden

UAE Oil Output Hits All-Time High, Doubling Pre-Crisis Levels

UAE Oil Output Hits All-Time High, Doubling Pre-Crisis Levels

Confirming reports from earlier this week, the latest estimates from the International Energy Agency signaled that the United Arab Emirates (UAE), which unexpectedly quit OPEC earlier this year in a shock move that threatened the cohesion of OPEC, produced 4.1 million barrels per day (bpd) of crude oil in June, its highest output ever.

The UAE’s crude oil production jumped from 3.3 million bpd in May to 4.1 million bpd in June after the country left OPEC effective May 1, started raising output, and managed to sneak a lot of exports out of the Middle East even as the Strait of Hormuz was mostly blockaded for the first half of June.

The crude oil production in June, at 4.1 million bpd, was the highest ever on record for the UAE, nearly double the output in March 2026 at the start of the Hormuz crisis. The production level also topped the previous record of 4 million bpd from the spring of 2020 when the OPEC+ producers were fighting for market share in a brief price war during peak Covid, according to OilPrice.com

The UAE has sought to adapt to the closure of the Strait of Hormuz by sneaking tankers in dark mode through the Strait and increasingly offering to sell many of its crude grades for loading offshore Fujairah and at Sohar in Oman, outside the Strait.

Moreover, the Abu Dhabi national oil company ADNOC accelerated plans to have a new pipeline operational in 2027 that would double its oil export capacity through Fujairah, which sits outside the Strait of Hormuz.

ADNOC plans to build a new project, the West-East 1 Pipeline, which is expected to become operational next year and double the UAE’s energy giant’s export capacity through the Emirate of Fujairah to meet global demand for energy supplies.

The national oil company also plans to plans to award as much as $55 billion (200 billion UAE dirhams) on upstream and downstream projects over the next two years. The announcement of accelerated growth came days after the UAE said it would quit OPEC effective May 1 to pursue its national interests.

Tyler Durden
Fri, 07/10/2026 – 11:03

via ZeroHedge News https://ift.tt/JeX9FoM Tyler Durden

IEA Warns Escalation In US-Iran Hostilities Could Upend Oil Surplus Forecast

IEA Warns Escalation In US-Iran Hostilities Could Upend Oil Surplus Forecast

Despite the tentative recovery of oil flows through the Strait of Hormuz and the first build-up in global stocks since the war began, this week’s re-escalation of the U.S.-Iran hostilities could flip the outlook for an oil market surplus for next year, the International Energy Agency said on Friday. 

Oil prices have plunged since the United States and Iran signed the memorandum of understanding (MoU) in the middle of June, with North Sea Dated prices down by $31 per barrel in June to $68 a barrel by early July, their lowest since January and $2 per barrel below pre-war levels, OilPrice reported.

And while the oil market is still expected to move to significant surplus towards the end of the year, IEA said that this is heavily predicated on the assumption that tanker flows through the Strait will gradually recover: “An escalation in hostilities on 7-8 July, however, clouds the outlook and could upend the forecast that sees the market flipping to a surplus next year,” the IEA said in its closely watched Oil Market Report for July

Since the reopening of the Strait of Hormuz, tankers have rushed to exit the Persian Gulf, including millions of barrels of Iranian crude that Tehran couldn’t move past the U.S. blockade between mid-April and mid-June. As a result, global oil supply rebounded by a massive 4.1 million barrels per day (bpd) to 98.8 million bpd in June, amid a partial recovery in Gulf production, the IEA said.

However, global oil output remained about 9.4 million bpd below pre-war levels, with supply on track to decline by an average of 3.7 million bpd to 102.6 million bpd in 2026, “contingent on a swift de-escalation of renewed hostilities.” Meanwhile tanker crossings have slowed to a trickle, while insurers are reportedly demanding a pound of flash, with Reuters reported that “war insurance for ships inside the Gulf has already ticked higher towards 3% of a vessel’s value, up from 2% at the end of last week.” Meanwhile, quotes for coverage as high as 5% are still circulating. 

At the same time, global demand – which was hit by demand destruction when crude prices topped $100 early this year – is starting to recover from the lows seen in the second quarter, with annual declines easing from 4.8 million bpd in April-June to an expected yearly drop of 1.7 million bpd in the third quarter, the IEA reckons.

Despite the wave of crude managing to clear the Strait of Hormuz in recent weeks, product supply and deliveries are much slower to rebound, with the markets still tight, the agency noted.

“The disconnect between apparently well supplied crude oil markets and tight product markets underpinned a rally in cracks and refinery margins to four-year highs by early July,” said the IEA.

“While concerns over jet fuel shortages have eased in recent weeks after refiners pushed output to new highs, diesel and gasoline markets have tightened, with gasoline cracks moving sharply higher.”

Here are the key highlights from the report:

  • On demand, there has been significant sequential improvement with +1.2mbd YoY growth forecast in 4Q vs. -1.7mbd YoY in 3Q and -4.8mbd YoY in 2Q.  For context, Asia accounted for 2/3 of the peak demand drop. Overall, demand forecast increased slightly vs. last month report with 2026 now -1mbd YoY and 2027 +2mbd YoY (vs. -0.7mbd and +2.1mbd GS Research forecasts).
  • On supply, June increased by 4.1mbd MoM to 98.8mbd, although still 9.4mbd below pre-war levels. Focusing on the Gulf, total June exports increased 6.5mbd MoM to 16.1mbd vs. 24mbd pre-war average.  In particular, it is worth noting that UAE (who recently left OPEC+) produced record volumes in June with further growth expected. 
  • Inventory data showed 21mb increase in June, the first increase in four months following 360mb decline from March to May.  The IEA said that 69% of the proposed 400mb emergency inventory release has been completed, with uncertainty over the timing of release of the balance. 
  • A recovery in world oil demand is underway, with consumption set to rise from its May nadir on seasonal trends and as pent-up demand is released in line with a rebound in product supplies. Annual contractions ease from 4.8 mb/d in 2Q26 to 1.7 mb/d in 3Q26, followed by a rise of 1.2 mb/d in 4Q26, for an overall decline of 1 mb/d this year. Forecast growth of 2 mb/d in 2027 results in a two-year pace of expansion well below historical trends. 
  • Global oil supply rebounded by a sharp 4.1 mb/d to 98.8 mb/d in June, as a resumption of flows through the Strait of Hormuz underpinned a partial recovery in Gulf production. World output was nevertheless some 9.4 mb/d below pre-war levels, with supply on track to decline by an average of 3.7 mb/d to 102.6 mb/d in 2026, contingent on a swift de-escalation of renewed hostilities. If transit volumes improve, oil supply will expand by 7.5 mb/d next year. 
  • Refined product cracks and margins surged to four-year highs in early July, as increased crude supplies pushed oil prices sharply lower, while product markets remained tight. Global refinery runs rose by 1.5 mb/d in June, down 6 mb/d y-o-y, with Middle East export refineries yet to restart, Russian throughputs curtailed by attacks and Asia still running at reduced rates. Global runs are expected to decline by 2.4 mb/d this year and rebound by 3.1 mb/d in 2027. 
  • Global observed oil inventories rose for the first time in four months in June, by 21 mb, as sharply higher oil on water volumes more than offset continued draws in onshore tanks. Following a decline of 73 mb in May, total OECD stocks fell by a further 62 mb in June, of which an estimated 44 mb came from government stock releases. Non-OECD crude stocks eased by 37 mb in June, led by a 41 mb draw in China. 
  • Benchmark crude oil prices continued to spiral lower in June, erasing all of their wartime gains, as tanker traffic out of the Gulf picked up and market focus shifted to the prospect of oversupply. North Sea Dated crude plunged by $22/bbl m-o-m, to around $68/bbl, with prompt time spreads reverting to contango. Prices rose after the ceasefire agreement was breached on 7-8 July, with Dated trading around $77/bbl at the time of writing. 

Here is the full visual recap, courtesy of Goldman

Tyler Durden
Fri, 07/10/2026 – 11:01

via ZeroHedge News https://ift.tt/YdqylWb Tyler Durden

Before the NSA Honored Historian David Kahn, the FBI Investigated Him


David Kahn, with the NSA logo behind him | Illustration: Badboo/Dreamstime/By Bobrowen/Wikimedia Commons

The U.S. government came to like the work of historian David Kahn, who passed away in 2024. The National Security Agency (NSA) honored him three times for his research on cryptography and espionage: with a “scholar-in-residence” title in 1993, a ceremony making his personal library part of the National Cryptological Museum in 2010, and a hall of fame induction in 2020.

But decades before, the U.S. government considered that personal library an alarming security threat. The FBI has declassified its files on Kahn, which Reason obtained under the Freedom of Information Act. Although it is publicly known that the NSA tried to stop Kahn from publishing his 1967 magnum opus, The Codebreakers, the new files show that Kahn had caught the feds’ attention a decade before, with the case making its way up to FBI Director J. Edgar Hoover himself.

Kahn’s FBI file is one of those rare government documents with a personality. His curiosity, equal parts cheeky and naive, shines through the FBI agents’ dry recap of events. The file is also a time capsule from the early Cold War, an age when cryptography—now the infrastructure that makes the modern internet possible—was still an obscure dark art for math nerds.

In 1953, the U.S. Army Counterintelligence Corps caught wind that Kahn, then a 23-year-old enlisted reservist and part-time ice cream truck driver, was mailing “restricted Army documents” to another man named Frederic C. Flindt. The corps alerted the FBI, which set up a stakeout on August 6 at the post office in Flindt’s hometown of Woodbury, New Jersey. 

As expected, Flindt picked up a certified mail package from Kahn with a collection of government cryptography manuals inside. The FBI agents pounced, but Flindt was totally cooperative, even showing the agents his other letters with Kahn.

Alongside his Army reservist training, Kahn was taking correspondence courses on how to use the Army’s cipher machines and forwarding the materials for Flindt to copy and return. He wrote to Flindt that the course material would “be a valuable permanent addition to both our libraries. But I do not have the time nor the money either to copy it myself or to get it copied.”

Kahn also warned Flindt “to take the greatest precautions” lest they be “chucked into the calaboose.” Flindt agreed to keep it “confidential,” and offered to show Kahn his own collection of translated European cryptography guides. In other words, they were building an unauthorized archive of cryptographic history.

“It was my intention to use the material obtained from David Kahn for reference material to write a history of cryptology after it had been declassified,” Flindt told the FBI agents.

Flindt and Kahn had met through a civilian club called the American Cryptogram Association. A few years later, The New York Times covered a meeting of the association as a nerdy curiosity. Kahn excitedly spoke to a reporter about his hobby under the pseudonym “Ishcabibel,” the same pen name he signed his letters to Flindt (“Nip N. Bud”) with.

After interrogating Flindt, the FBI moved on to Kahn, who told his interrogators that he sent Flindt that particular manual because “he considered it to be a collector’s item and to be well-written.” Both Flindt and Kahn come off as painfully naive; Kahn admitted that he “realized that classified material should not be passed on to unauthorized individuals but from his review of the material he saw no reason for its being restricted as there was nothing in this material which was not known to cryptographists,” according to the FBI agents’ paraphrase of the interview.

A point in Kahn’s favor: All of the material he sent to Flindt was about to be declassified in a few months anyway. The documents were marked “Restricted,” a security classification that President Dwight D. Eisenhower abolished in November 1953, automatically declassifying the materials in that category. Indeed, Kahn pointed out to the agents that he was able to buy a cipher machine and its “Restricted” manual from military surplus vendors “before I ever had access to any restricted Army cryptographic material.”

But betting on the forgiveness and graciousness of government agents is a very bad wager, especially from behind an interrogation table. The FBI confiscated both the papers and the cipher machine. On September 17, a little over a month after the post office sting operation, the agents’ report landed on the desk of Hoover. He wrote to the Department of the Army asking “whether your Department would interpose any objection to the introduction of the material not legally in subject’s possession in evidence in the event of prosecution.” It was not looking good for Ishcabibel and Nip N. Bud.

A few days later, Kahn’s father called the FBI. By coincidence, Kahn had just returned home to his parents in Great Neck, New York. His father, a lawyer, was no doubt horrified that his son had been blabbering about potential crimes to government agents. In November, the younger Kahn was kicked out of the Army, and the elder Kahn called the FBI again to say “that his son was immature in many respects and was definitely not a person who should be given the label ‘a security risk’ for the rest of his life,” according to a Department of Justice memo.

The momentum within the FBI to prosecute Kahn and Flindt seems to have died out soon after. In February 1954, Kahn actually called the FBI asking to get back the papers and cipher machine from before his Army service because he “wished to continue code studies.” A few weeks later, FBI agents knocked on Flindt’s door—this time, to return his belongings.

That close brush with the law didn’t deter Kahn. In fact, he started actively reaching out to the FBI. In March 1955, he asked the local FBI field office whether anyone would be interested in giving a speech to the New York Cipher Society, another cryptographic club. The assistant special agent in charge noted in the margins of the letter that “even though Dept. of Justice declined prosecution,” Kahn was obviously unworthy of having his request considered.

The feds eventually started warming up to Kahn. In 1961, while Kahn was working at the newspaper Newsday, the FBI gave him information about Soviet spy Rudolf Abel and other espionage cases. (Kahn had excitedly raved about the Abel case in the Times story about the American Cryptogram Association.) In April 1964, Kahn asked the FBI for another photo of Abel’s codebook and an explanation of its color scheme for a new book he was writing.

“Despite Kahn’s background,” an FBI official wrote in a memo, “there appears to be no reason why we should not make a copy available to Kahn.”

However, the same memo warned that Kahn was interviewing retired military officers and the book “likely falls within the scope of national policy against release of information related to communications intelligence.” It noted that the U.S. Intelligence Board, a council of spy agency leaders, recommended “further low-key action short of legal action to discourage Mr. Kahn or his publishers from providing possible available security information to foreign governments.”

According to Kahn’s New York Times obituary, the NSA actually considered breaking into Kahn’s house. Instead, the agency contacted Kahn’s publisher, asking for the book to be censored. Kahn agreed to take out only a few paragraphs about World War II-era codebreaking efforts that were still classified.

The new files show that the FBI, too, opened an investigation into him while he was working on the book. Although most of the details are redacted, the file shows that FBI agents contacted no less than 11 informants in April 1964 to ask about Kahn, to no avail. They closed the case “in view of the fact that subject is currently self-employed as a writer, and an interview of him might cause possible embarrassment to the Bureau, and he has used extremely poor judgement in the past, and he is believed too unreliable for the informant program.”

Decades later, the feds would have a very different view of Kahn. The NSA website states that “hundreds [of NSA staff] told him they had first gotten into cryptology because of his writings” and that Kahn “has done more than any single individual to educate the public, around the world, about the importance of cryptology to international peace and security.” His ultimate legacy in the government’s eyes is a far cry from the security threat that the FBI saw in the 1950s or the unstable but harmless crank that the bureau saw in the 1960s.

Still, the same doggedness and sense of whimsy that got a young Kahn in trouble also enabled his later success. When the photo of Abel’s codebook turned out to be too small for print, Kahn appealed to Hoover himself to send a bigger copy. “I am reluctant to trouble you again, but, following the principles of persistence I learned from the FBI…feel that it is necessary,” he wrote.

The post Before the NSA Honored Historian David Kahn, the FBI Investigated Him appeared first on Reason.com.

from Latest – Reason.com https://ift.tt/WL2mOxE
via IFTTT

Florida Police Officer Used Mass Surveillance Network to Stalk Romantic Interest


Police officer working on a laptop | Illustration: Midjourney

Automatic license plate readers (ALPRs) are among the fastest-growing forms of mass surveillance, logging over 20 billion license plate scans per month. This technology, which can track and locate vehicles and their drivers in near real time, is increasingly used by law enforcement to help investigate crimes without first obtaining a warrant. But without proper oversight, privacy experts warn such a trove of personal data is ripe for abuse. 

Take the case of Lamar Roman, a 28-year-old married sheriff’s deputy living in South Florida, who couldn’t resist the temptation to use these powerful surveillance tools for his own personal gain. 

Dashcam footage published earlier this week by 404media shows the Monroe County sheriff’s deputy speeding through traffic in early February. He dangerously weaves through traffic on a two-lane highway, hitting speeds over 70 mph. At one point, he almost causes a head-on collision. Roman eventually catches up to and pulls over his target: a 27-year-old woman suspected of no wrongdoing. He’d simply met the woman a few weeks earlier while he worked a security detail on the set of Bad Monkey, an Apple TV series filmed in the Florida Keys.

In a recorded police interview, the woman, whose identity is being kept private, told investigators that Roman made her feel uncomfortable as soon as she arrived on set as an extra. “Immediately it was like, ‘Oh my God, why did nobody tell me they were bringing models to set?'” the woman told investigators. At first, she didn’t know whether Roman was a real cop or dressed to play one on the show when he pressured her for her name, number, and Instagram handle, reports 404media

“I need your name and number just in case I pull you over someday,” Roman told the woman, according to the arrest warrant reviewed by 404media. The woman later told investigators that Roman appeared to be flirting and joking. In response, she tried to be “standoffish” and told him she had a boyfriend.  

So when she was pulled over a few weeks later, the woman told investigators she knew it was Roman. When she asked him during the stop how he’d known it was her, she told investigators he replied, “I told you I’d find you and pull you over,” and stated, “I was hoping your boyfriend was in the car so I can pull him out and give him a hard time,” reports 404media. Roman then asked why she hadn’t followed him back on Instagram. 

Eventually, Roman allowed the woman to leave. But it wasn’t until the woman spoke with investigators that she was “advised [on] the full extent to which Deputy Roman utilized law enforcement databases to search her and obtain personal information about her,” one police investigator wrote, according to 404media. Shortly after meeting the woman on set, Roman used a sophisticated network of police surveillance tools “to pull the woman’s identity, vehicle information, and current photo,” reports Gadget Review

In the video of his interview with police, Roman told investigators that he was “just teasing” the woman on the set of Bad Monkey, and that he believed she was flirting back with him. He also said he messaged her on Instagram but didn’t receive a reply. 

Roman then admitted to running the woman’s name through the agency’s identification database and finding her driver’s license number. In turn, he put the woman’s driver’s license number into the Florida Department of Highway Safety and Motor Vehicles database used by law enforcement to find her license plate number. Finally, Roman added her license plate to a hotlist on the Guardian ALPR system, according to 404media. The Guardian system then provided Roman with real-time alerts on the woman’s vehicle location, which he used to track her and pull her over. Throughout this process, Roman admitted to having no legal justification, and he was never required to obtain a warrant.

“I know it’s stupid,” Roman told the investigators. “It’s a tough month,” he continued, “and I saw a shiny thing.”  

According to court records, Roman was arrested on March 10 on three counts of misusing a law enforcement database, a third-degree felony punishable by up to five years in prison and a $5,000 fine. He was subsequently fired from the Monroe County Sheriff’s Office following his arrest. On July 1, he entered a two-year-long pretrial intervention agreement that, if completed, will result in the dismissal of all charges against Roman.

“The fundamental problem with these systems is that they place private information about people’s movements over time in the hands of every officer,” Michael Soyfer, an Institute for Justice attorney who has brought legal challenges against ALPR surveillance networks, said in a statement. “Without the constitutional safeguards of a warrant requirement, that predictably allows officers to abuse their access to these systems for things like stalking romantic partners.” 

The post Florida Police Officer Used Mass Surveillance Network to Stalk Romantic Interest appeared first on Reason.com.

from Latest – Reason.com https://ift.tt/6fcQ3qI
via IFTTT

Salvation Army Has First Amendment Right to Ban Methodone Use by People in Its Adult Rehabilitation Centers

From Tassinari v. Salvation Army, decided Monday by Judge Leo Sorokin (D. Mass.); I’d love to hear what list members think of it:

[Plaintiffs] assert that TSA maintains a policy at its Adult Rehabilitation Centers that prevents such individuals from accessing medication for their disorder [including methadone and buprenorphine for Opiod-Use Disorder [OUD]], in violation of Section 504 of the Rehabilitation Act, 29 U.S.C. § 794, and the Fair Housing Act, 42 U.S.C. § 3604…. [The Salvation Army] operates twenty-nine Adult Rehabilitation Centers (“ARCs”) in that territory. TSA refers to ARC participants as “beneficiaries.” ARCs provide beneficiaries with housing and basic living necessities for six to twelve months, during which time beneficiaries live on site and participate in “work therapy” by working full time at the ARCs or processing donated goods for resale at Salvation Army thrift stores….

TSA views ARCs as “residential churches,” and it considers the operation of ARCs to be one of the ways it practices its religion. TSA considers “the highest priority of the ARCs” to be “bring[ing] the beneficiaries into a personal relationship with God.” ARCs “serve[ ] men and women with social, emotional and spiritual needs who have lost the ability to cope with their problems and provide for themselves.”

Beneficiaries need not be Salvationists—the vast majority are not—and they may continue to practice their own religion if they do so on their own time. But all beneficiaries are required to acknowledge that The Salvation Army is a church and must agree to participate in Salvationist religious activities as a condition of their ARC participation. Beneficiaries meet at least biweekly with their assigned spiritual counselor. They must also attend Sunday morning chapel services, a midweek service, daily devotions, and weekly Bible classes.

Abstinence from alcohol and addictive substances is a core tenet of The Salvation Army’s religious beliefs. sincerely believes, as a matter of its religion, that long-term use of narcotics to treat addiction is not true rehabilitation, and that “abstinence and the power of God unto salvation is the only form of successful rehabilitation.”

TSA requires, as a condition of ARC participation, that beneficiaries abstain from alcohol and certain drugs [including methadone and buprenorphine]. Beneficiaries must submit to urine drug testing when they apply for ARC admission and at regular intervals thereafter. Applicants with positive urine tests for a proscribed drug are generally required to “detox” before admission, although under some circumstances ARC policy permits such an applicant to be admitted if they have not used drugs for the prior forty-eight hours….

TSA operates other social-service programs, and in some of those programs, it permits—and even provides—buprenorphine and methadone to participants with OUD. At TSA’s Harbor Light Centers, for instance, TSA permits participants to use buprenorphine and methadone if those MOUDs are deemed medically appropriate for the participant and as consistent with state and federal guidelines. Harbor Light Centers include state-licensed halfway houses and certified “residential subacute detox” and “intensive outpatient treatment” facilities….

The court concluded that TSA was immune from liability under the church autonomy doctrine:

The undisputed facts establish that TSA regards ARCs as residential churches whose highest priority is to “bring the beneficiaries into a personal relationship with God.” The facts describe a lengthy evangelist program, running six to twelve months, aimed at rehabilitation through spiritual healing—essentially, a religious conversion program that requires beneficiaries to practice Salvationism…. The Court can no sooner order TSA to abandon its Salvationist understanding of “abstinence” than it can order an Orthodox Jewish synagogue not to separate its congregants by sex….

Plaintiffs assert that the Medication Policy reflects a flawed, outdated understanding of
“addiction” and is internally inconsistent, permitting beneficiaries to use some substances with the potential for abuse or addiction while prohibiting prescribed MOUD [medications for OUD]. They note TSA permits or provides methadone and buprenorphine as MOUD in some of its other social-service programs, and they hold up that fact as evidence both that nonbelievers’ use of those medications does not violate TSA’s sincerely held religious beliefs and that TSA could, as a practical matter, permit beneficiaries to safely use these medications.

On the facts of this case, these contentions miss the mark. The Salvation Army—not the Court—determines Salvationist doctrine. That TSA drew some aspects of its Medication Policy from a secular source does not render its policy nonreligious. Indeed, from a lay perspective, any number of religious rules or doctrines can be viewed as arbitrary, inconsistent, or irrational—but these rules or doctrines are matters of faith, not susceptible to civil adjudication under our Constitution. The Court may not and does not evaluate the correctness, internal consistency, or centrality of TSA’s religious beliefs. See Hernandez v. Comm’r of Internal Revenue (1989) (“It is not within the judicial ken to question the centrality of particular beliefs or practices to a faith, or the validity of particular litigants’ interpretations of those creeds.”); cf. Thomas v. Rev. Bd. (1981) (“Courts are not arbiters of scriptural interpretation.”). The “abstinence” rule is part and parcel of TSA’s evangelist efforts to bring ARC beneficiaries into a “personal relationship with God.” Judicial scrutiny of this church doctrine is precluded by the First Amendment.

And the court rejected the argument that TSA had waived its rights by accepting federal funding:

To the extent TSA may waive its church-autonomy defense (something the Court assumes without deciding), such a waiver must be knowing and voluntary. A generic agreement to abide by all terms of federal funding does not sufficiently put TSA on notice that, by accepting federal funds, it waived its fundamental constitutional right to determine matters of faith and doctrine free from governmental interference….

Andrew Holmer, Daniel William Wolff, and Thomas P. Gies (Crowell & Mooring LLP) and Kevin M. Hensley (Barton Gilman LLP) represent The Salvation Army.

The post Salvation Army Has First Amendment Right to Ban Methodone Use by People in Its Adult Rehabilitation Centers appeared first on Reason.com.

from Latest – Reason.com https://ift.tt/hIMJEF9
via IFTTT

Nominal Damages Aren’t Enough When There’s Evidence of Emotional Distress in Defamation Per Se Case

From Sullivan v. Schiman, decided Tuesday by the Illinois Appellate Court (Justice John Anderson, joined by Justices Linda Davenport and Matthew Bertani):

Schiman posted on Facebook—falsely—that [Dr.] Sullivan sexually abused her during [a medical examination at a hospital] …. Following a multi-day bench trial, the circuit court agreed that Sullivan was actually (not just presumptively) harmed but awarded $1 in nominal damages….

On January 23, 2022, Schiman went to the St. Margaret’s Hospital emergency room for treatment of severe abdominal pain. Sullivan, an emergency physician, performed a physical examination of Schiman. Based on the examination, Sullivan informed Schiman that he recommended performing a rectal exam to assess for the presence of blood and mucus. Schiman consented, and Sullivan performed the exam with a nurse present.

Shortly after the exam, Schiman accused Sullivan of performing an unnecessary rectal exam in an aggressive manner. The next day, she filed complaints with the hospital, the Illinois Medical Board, and the Spring Valley Police Department, alleging that Sullivan sexually assaulted her during the exam. On March 25, 2022, the Bureau County State’s Attorney’s Office declined to file any charges and closed the case.

On March 31, 2022, Schiman posted the following statement (the Post) on Facebook:

“WARNING SPRING VALLEY/PERU/SURROUNDING AREAS: DR. WILLIAM SULLIVAN, an ER doctor at St. Margaret’s Hospital, Spring Valley—SEXUALLUY ASSAULTED ME IN THE ER, WITH a nurse in the room. He was supposed to give me a rectal exam (I have had endless exams like this, I’m a 30 year Crohns pt) & without lube, he shoved his fingers aggressively up my rectum & when I cried out he violently twisted his hand inside of me. My rectum was torn. The nurse told me ‘he didn’t know you had been raped before!’ When I called someone in from the hospital, they isolated me & wouldn’t let my mom back. When they finally let her back, they gave her 5 min & stood with us the entire time. They then let him continue to treat me all evening. I had to do a rape kit exam & police interrogation. The state [sic] attorneys [sic] office threw out charges without even speaking to me. HE HAS A MEDICAL MALPRACTICE LAW DEGREE AND A MEDICAL DEGREE. He knows EXACTLY what he can get away with. The police told me this is not his first complaint to them. Yet St. Margaret’s keeps him on & defends him. DO NOT GO THERE. This man is violent & aggressive. Please don’t let your loved ones near him or this hospital!!!”

Schiman posted the statement on the City of Peru Updates and Information Facebook page (the City of Peru Facebook page). Perez, the page’s administrator, commented that he believed the post was true and compared Sullivan to another local physician who had been charged with a sex crime. Perez then made the Post a “featured post” so that it would be the first post on the Facebook page….

Here’s an excerpt from the appellate court’s discussion of the evidence at trial regarding the examination:

Sullivan learned that Schiman came to the emergency room complaining of abdominal pain. She had also visited the emergency room the previous day with a complaint of a headache. The earlier-treating physician had ordered lab work and an anti-inflammatory named Toradol.

According to Sullivan, when he first evaluated Schiman, she told him that she had taken Toradol that day and that she had already exceeded the maximum dose, so Sullivan cancelled the dose of Toradol. Schiman indicated her pain level was 10 out of 10. Schiman asked Sullivan what he was going to do about her pain and he stated that he was not comfortable giving her additional opiates to treat the pain. Sullivan was also uneasy prescribing opiate medication because “several things with her story weren’t matching up” and the previous day she received a large dose of Dilaudid, a strong opiate.

Sullivan did a full exam of Schiman. Based on the exam and her history of colitis, he was concerned Schiman had a colitis flare-up. In light of her pain and medical history, Sullivan informed Schiman that a rectal exam was needed, and she consented to the exam.

Per normal procedure, Sullivan asked a nurse, Megan McNally, to be present during the exam. McNally retrieved the lubrication and gloves and set them on a tray next to Schiman’s bed. Sullivan put on the gloves and lubrication and performed the exam. Sullivan indicated there was no blood on the glove, disposed of the gloves, washed his hands, and left the room.

After Sullivan exited the room, McNally likewise left the room and informed Sullivan that Schiman was upset because he had not asked her if she had been raped before. She also told Sullivan that Schiman made a complaint to an administrator at the hospital that the exam was aggressive and unnecessary. Schiman also requested that Sullivan stay out of her room unless absolutely necessary. Sullivan did not go back into the room….

And the appellate court’s analysis:

Here, the trial court found that the defendants’ statements and comments constituted defamation per se. That finding is not contested. The trial court acknowledged that the law presumes damages for per se defamatory statements and further found that Sullivan suffered damages of “mental anguish.” …

This case involves defamation per se, which has presumed damages. “Presumed damages are those which the law presumes must actually, proximately and necessarily result from the publication of the defamatory matter.” Again, these damages are inherently imprecise in connection with the harm suffered. The damages awarded are “an estimate of the extent of the loss the plaintiff has suffered in the past and would suffer in the future, either from a monetary or enjoyment of life standpoint.”  … [T]he evidence “need only tend to show a basis for the computation of damages with a fair degree of probability.” …

Here, the trial judge awarded only nominal damages, seemingly due to a lack of understanding of how reputational harm damages are assessed. Nominal damages are issued when a legal wrong has taken place but there was no actual, meaningful loss as a result of the legal wrong. Such damages are awarded when the insignificant character of the defamatory statement leads the trier of fact to conclude that no substantial harm has been done to the plaintiff’s reputation, and there is no proof that serious harm resulted from the defendant’s attack on the plaintiff’s character and reputation….

Here, a physician was publicly accused of committing a violent sexual assault under the guise of a medical examination. Several thousand people allegedly saw the accusation. No reasonable person can describe such an allegation as trivial or inconsequential. And even though Sullivan was not required to plead or prove reputational harm because the statement was defamatory per se, we observe that he testified that he was humiliated following the Post. He testified, and his wife corroborated, that he suffered loss of sleep, embarrassment, concern, changes in temperament, and changes in the way he treated patients….

The court therefore remanded the case for the trial judge to determine the magnitude of emotional distress damages.

The post Nominal Damages Aren't Enough When There's Evidence of Emotional Distress in Defamation Per Se Case appeared first on Reason.com.

from Latest – Reason.com https://ift.tt/Vq0onOs
via IFTTT