Latest news with #federal
The Independent
an hour ago
- Politics
- The Independent
Judge rules Trump administration can't require states to help on immigration to get transport money
A federal judge on Thursday blocked the Trump administration from withholding billions of dollars in transportation funds from states that don't agree to participate in some immigration enforcement actions. Twenty states sued after they said Transportation Secretary Sean Duffy threatened to cut off funding to states that refused to comply with President Donald Trump's immigration agenda. U.S. District Judge John McConnell Jr. barred federal transportation officials from carrying out that threat before the lawsuit is fully resolved. 'The Court finds that the States have demonstrated they will face irreparable and continuing harm if forced to agree to Defendants' unlawful and unconstitutional immigration conditions imposed in order to receive federal transportation grant funds,' wrote McConnell, the chief judge for the federal district of Rhode island. 'The States face losing billions of dollars in federal funding, are being put in a position of relinquishing their sovereign right to decide how to use their own police officers, are at risk of losing the trust built between local law enforcement and immigrant communities, and will have to scale back, reconsider, or cancel ongoing transportation projects.' On April 24, states received letters from the Department of Transportation stating that they must cooperate on immigration efforts or risk losing the congressionally appropriated funds. No funding was immediately withheld, but some of the states feared the move was imminent. Attorneys general from California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, Rhode Island, Washington, Wisconsin and Vermont filed the lawsuit in May, saying the new so-called 'Duffy Directive' put them in an impossible position. 'The States can either attempt to comply with an unlawful and unconstitutional condition that would surrender their sovereign control over their own law enforcement officers and reduce immigrants' willingness to report crimes and participate in public health programs — or they can forfeit tens of billions of dollars of funds they rely on regularly to support the roads, highways, railways, airways, ferries, and bridges that connect their communities and homes,' the attorneys general wrote in court documents. But acting Rhode Island U.S. Attorney Sara Miron Bloom told the judge that Congress has given the Department of Transportation the legal right to set conditions for the grant money it administers to states, and that requiring compliance and cooperation with federal law enforcement is a reasonable exercise of that discretion. Allowing the federal government to withhold the funds while the lawsuit moves forward doesn't cause any lasting harm, Bloom wrote in court documents, because that money can always be disbursed later if needed. But requiring the federal government to release the money to uncooperative states will likely make it impossible to recoup later, if the Department of Transportation wins the case, Bloom said.
CNN
2 hours ago
- Politics
- CNN
Judge blocks Trump administration from tying transportation funds to states' cooperation with immigration efforts
A federal judge in Rhode Island blocked the Trump administration from using states' cooperation with immigration efforts as a condition for receiving transportation funds. US District Judge John McConnell granted a preliminary injunction to 20 mostly Democratic-led states that filed a lawsuit last month to prevent the Department of Transportation from cutting off billions of dollars in funding if the states refused to comply with federal immigration enforcement. In his Thursday ruling, McConnell, who was nominated by former President Barack Obama, said, 'Congress did not authorize or grant authority to the Secretary of Transportation to impose immigration enforcement conditions on federal dollars specifically appropriated for transportation purposes.' The ruling is the latest legal setback for President Donald Trump's administration. Many state attorneys general have sued over issues ranging from the president's bid to end birthright citizenship to his tariff policies. The president has used federal funding as leverage amid policy disagreements with different states and organizations. He threatened to withhold funds from California over a transgender athlete's participation in a sporting event and to cut off $3 billion in federal grant funding for Harvard University over its handling of anti-Israel protests. In his ruling, McConnell wrote that the immigration-enforcement condition on the funding 'is arbitrary and capricious in its scope and lacks specificity in how the States are to cooperate on immigration enforcement in exchange for Congressionally appropriated transportation dollars–grant money that the States rely on to keep their residents safely and efficiently on the road, in the sky, and on the rails.' CNN has reached out to the Department of Transportation for comment. Earlier this week, Transportation Secretary Sean Duffy wrote in a social media post that the department 'will NOT fund rogue state actors who refuse to cooperate with federal immigration enforcement.' The lawsuit was brought by California, Illinois, New Jersey, Rhode Island, Maryland, Colorado, Connecticut, Delaware, Hawaii, Maine, Massachusetts, Michigan, Minnesota, Nevada, New Mexico, New York, Oregon, Vermont, Washington and Wisconsin. California's Attorney General Rob Bonta praised the court's decision and criticized Trump for using funds 'as a bargaining chip.' 'It's immoral – and more importantly, illegal. I'm glad to see the District Court agrees, blocking the President's latest attempt to circumvent the Constitution and coerce state and local governments into doing his bidding while we continue to make our case in court,' Bonta said in a statement on Thursday.
Zawya
4 hours ago
- Business
- Zawya
Accenture beats third-quarter revenue estimates
Accenture beat Wall Street estimates for third-quarter revenue on Friday, driven by growing demand for the consulting giant's AI-driven services from enterprise customers. It reported revenue of $17.7 billion for the quarter ended May 31, compared with analysts' average estimate of $17.30 billion, according to data compiled by LSEG. Shares of the company fell 2.6% in premarket trading after Accenture said new bookings decreased 6% to $19.7 billion in the third quarter. The company is grappling with weak U.S. federal contracting environment as the Trump administration has slowed new contracts and cut existing agreements in a bid to reduce federal spending. The company said these changes have not had a material impact on its operations or financial condition. (Reporting by Meghana Khare and Jaspreet Singh in Bengaluru; Editing by Shinjini Ganguli)
Yahoo
15 hours ago
- Business
- Yahoo
Credit scores will drop for more student loan borrowers, data shows
Imagine your credit score suddenly dropping by 63 points. For more than four million federal student loan borrowers, that's no nightmare. It's a wake-up call. In fact, a 63-point drop was just the average. Many of these borrowers experiencing a serious delinquency — at least 90 days late on a payment — in early 2025 saw their credit score drop by 42 to 175 points, according to a May analysis by the credit bureau TransUnion. And no one is immune. Borrowers with strong credit histories and cleaner credit reports saw their scores drop the most, by up to three figures. Even scarier? These borrowers could soon have more company. Some of the nearly eight million enrolled in the decaying SAVE Plan may soon face delinquency. So too could borrowers who have been struggling to enroll in income-driven repayment (IDR) plans. 'We're just waiting for them to be reported — we're calling those the shadow delinquencies,' says Michele Raneri, TransUnion vice president of financial services research and consulting. Yes, more than one in every five federal student loan borrowers in active repayment — 20.5 percent of about 19.6 million individuals — are three months or more late on their monthly dues. That's an all-time high, according to TransUnion, in part because Raneri says her team filtered out millions of federal loan borrowers who don't have an active payment due date. According to the Department of Education's own figures, that means more than five million borrowers are in default (270 or more days tardy), and as many as 10 million could be this summer. Being in default hits your credit, but it can also mean wage garnishment and forfeiture of federal tax refunds and Social Security benefits, among other consequences. 'So everything indicates that [this] is just the first group' to be reported, Raneri says. Related: We're facing a student loan default crisis. This academic research might help As mentioned, 20.5 percent of borrowers are 90 or more days delinquent (as of February 2025), but that figure pales in comparison to the 11.5 percent who were similarly tardy five years ago. Secretary of Education Linda McMahon places the blame squarely on colleges and universities, but the COVID-19 pandemic-inspired repayment pause and the last half-decade's fallout undoubtedly play a role, student loan payments are paused, borrowers saw their credit scores increase by an average of 74 points, thanks to the pause, according to the New York Federal Education Department announces 'Fresh Start,' removing the default status on credit reports for about 7.5 million defaulted Education Department calls for the resumption of monthly loan servicers begin reporting 90-days-or-more delinquencies to the credit Education Department resumes debt collection for federal loan defaults. In case you'd like a refresher, payment history is the single biggest determinant of your credit score. For FICO scores, for instance, whether you're on time or tardy with debt payments accounts for 35 percent of your score composition. That explains why borrowers have seen their scores fall so precipitously. Credit score before defaulting Average credit score drop after default (pts) 300 to 600 42 601-660 64 661-720 99 721-780 121 781 plus 175 Though borrowers with super-prime credit are the least vulnerable cohort, their path back to excellent credit won't be easy, Raneri says. 'They probably didn't have a 90-day-past-due on any [account] in the last seven years,' she says. 'And so it's difficult to come out and still become a super-prime again… And it'll take a couple of years probably for that to be in the rearview mirror, for it to fade away enough for it to bring the[ir score] back up.' Unsurprisingly, the lower your credit score, the more likely you have fallen behind in repayment. However, over the past half-decade, higher-credit borrowers have seen the biggest jump into delinquency. Percent of borrowers who are at least three months past due on a federal loan February 2020 February 2025 Percent change 300 to 600 38.8% 50.8% 31% 601 to 660 9.1% 23.3% 156% 661 to 720 1.3% 7.5% 477% 721-780 0.1% 2.1% 2,000% 781-plus 0.1% 0.9% 800% Spoiler alert: What's good for your student loan repayment is mutually beneficial for your credit report and score. Rehabilitate a defaulted loan, and your credit will thank you. Make a series of on-time payments toward your outstanding balance, and your score should increase over time. Of course, it's all easier said than done. And it can be overwhelming when you're wondering where to start. She continues, 'And so, if you have a fear of your credit, then you need to buckle down and just do it because it's not going to just go away. And I feel like there [are] people who with these student loans are kind of gambling with their credit score, thinking that maybe some [relief] is going to come through and it's not going to affect them. And by the time that you see it, it's probably too late. And then you have to start repairing it.' Take it from a certified student loan counselor: The important thing is to get moving. Here are some initial steps to take if your repayment has gone awry or requires a reset: Create or update your budget. It's the best way to understand your cash-flow, minimize unnecessary experience and set priorities, whether for your student loan or other debt payments. Reacquaint yourself with your education debt. You might log into your account (or your private lender's portal) to check your outstanding balances, interest rates and repayment status. Ask for help. While it's critical to be your own expert on your student loan accounts, it's always wise to request assistance. If you're disappointed in your federal loan servicer or private lender, talk to a certified counselor, student debt lawyer or organizations that offer student loan help. Settle on a strategy. Once you know where you stand and are aware of your education debt payoff options, picking a lane will ensure you keep moving toward the finish line. With that said, changes to your cash-flow could necessitate switching tactics down the road. Start or resume monitoring your credit. As you're getting more confident about handling your outstanding loans, track the improvement of your credit score. That can be gratifying and motivate you to stay on track to the bitter end. How to find help The National Foundation for Credit Counseling or your state's student loan ombudsperson are potential starting points. You're also welcome to email the writer at apentis@ Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
CBS News
16 hours ago
- Politics
- CBS News
Trump administration can't require states to cooperate with ICE to get transportation funding, judge says
A federal judge on Thursday blocked the Trump administration from requiring almost two dozen mostly Democratic states to cooperate with federal immigration authorities in order to receive billions in transportation funding. Transportation Secretary Sean Duffy warned in April his department may cut off grants to any recipients that fail to "cooperate generally with Federal authorities in the enforcement of Federal law" — part of a wider gambit to push back against "sanctuary" jurisdictions. A group of 20 states sued, arguing the administration doesn't have the legal authority to tie transportation dollars — which states rely on for upkeep of roads, airports and other infrastructure — to immigration enforcement. U.S. District Judge John McConnell sided with the 20 plaintiff states on Thursday, issuing a preliminary injunction that barred the government from enforcing the new immigration rules for "the States and their governmental subdivisions" while the lawsuit works its way through court. The policy, McConnell wrote, "is arbitrary and capricious in its scope and lacks specificity in how the States are to cooperate on immigration enforcement in exchange for Congressionally appropriated transportation dollars — grant money that the States rely on to keep their residents safely and efficiently on the road, in the sky, and on the rails." The Rhode Island judge added that "Congress did not authorize or grant authority to the Secretary of Transportation to impose immigration enforcement conditions on federal dollars specifically appropriated for transportation purposes." California Attorney General Rob Bonta, whose state was one of the 20 plaintiffs, lauded the decision in a statement, saying President Trump has tried to "coerce state and local governments into doing his bidding." "President Trump is threatening to withhold critical transportation funds unless states agree to carry out his inhumane and illogical immigration agenda for him. He is treating these funds – funds that go toward improving our roads and keeping our planes in the air – as a bargaining chip," Bonta wrote. CBS News has reached out to the White House and Department of Transportation for comment. The Trump administration has threatened to cut off some federal funding to "sanctuary" jurisdictions, or cities and states that limit local police from cooperating with federal immigration authorities. The administration argues these policies make it harder for agencies like Immigration and Customs Enforcement to apprehend undocumented immigrants, including those with criminal records. But some jurisdictions say that if local police are forced to cooperate with ICE, immigrants may be less likely to trust police. In April, a federal judge in San Francisco blocked the Trump administration from enforcing executive orders threatening to pull funds from "sanctuary cities." Duffy wrote on X earlier this week that his department "will NOT fund rogue state actors who refuse to cooperate with federal immigration enforcement." "And to cities that stand by while rioters destroy transportation infrastructure — don't expect a red cent from DOT, either. Follow the law, or forfeit the funding," Duffy added, likely referring to protests against ICE in Los Angeles and other cities.
