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    Cori Bush, ‘Squad’ Member and Vocal Critic of Israel, Loses Her Primary

    Representative Cori Bush of Missouri, one of the most outspoken progressives in the House, lost her primary on Tuesday, according to The Associated Press, falling to a campaign by powerful pro-Israel political groups intent on ousting a fierce critic of the nation’s war in Gaza.Her opponent, Wesley Bell, a county prosecutor, ran as a progressive and a pragmatist. But he was boosted by more than $8 million in spending from a super PAC affiliated with the country’s largest pro-Israel lobby, the American Israel Public Affairs Committee, or AIPAC, and other similar entities. That outside money transformed the race into one of the most expensive House primaries in history.The contentious contest came just weeks after Representative Jamaal Bowman of New York, another outspoken progressive and vocal Israel critic, suffered a stinging primary defeat. The same pro-Israel groups that poured $15 million into defeating Mr. Bowman were aiding Mr. Bell, and all eyes were on Ms. Bush to see if she would be the next member of the ultraliberal “squad” to see defeat.Ms. Bush, a former nurse, was first elected in 2020 as part of a wave of progressive victories over establishment figures that elevated forceful Black voices, including Mr. Bowman, during a summer of protests against police brutality. Ms. Bush first made a name for herself in her community in 2014, as a leading Black activist who took to the streets in Ferguson after the killing of Michael Brown, a Black teenager, by a white police officer.The district is solidly Democratic, and Mr. Bell is expected to easily win the general election.But since Ms. Bush’s first election, the political terrain has shifted, in large part because of Israel’s war against Hamas. The country’s retaliation for the deadly massacre on Oct. 7 carried out by Hamas has divided mainstream Democrats from progressives like Ms. Bush, who has vocally condemned Israel’s government over its military campaign and the rising civilian death toll in Gaza.Ms. Bush made herself vulnerable to a serious primary challenge through a string of controversial votes and positions. She was one of two Democrats who voted in January against a resolution to bar members of Hamas and anyone who participated in the attacks against Israel on Oct. 7 from the United States.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Washington Prepares for the ‘Super Bowl of Tax’

    Even with control of the White House and Congress up in the air, lawmakers and lobbyists are gearing up for a big debate next year over expiring measures in former President Donald Trump’s tax law.President Biden’s decision not to seek re-election is upending expectations about who will control Washington next year. But there is one thing lawmakers and lobbyists are certain of: A tax fight is coming.Across the nation’s capital, preparations are quietly starting for what some are calling the “Super Bowl of tax.” On Capitol Hill, Republicans and Democrats are holding strategy and education sessions. Lobbyists are pressing their case to lawmakers and preparing multimillion-dollar publicity campaigns to defend tax breaks for corporations. Think tanks are churning out research assailing or lauding elements of the byzantine tax code.On the line is the future of the Tax Cuts and Jobs Act, which a Republican Congress passed and former President Donald J. Trump signed into law in 2017.To avoid blowing too large of a hole in the federal budget at the time, Republicans scheduled many of the tax cuts to expire after 2025. That deadline has created a rare opportunity to reshape federal tax policy next year, and lawmakers in each party intend to be ready to wield whatever power voters give them in November.“We’re studying and preparing,” said Senator Michael D. Crapo of Idaho, who as the top Republican on the Senate Finance Committee has been holding meetings and gathering ideas about next year. “It’s preseason.”Many of the expiring tax measures are ones that benefit middle-class Americans, including a larger standard deduction, lower marginal income tax rates and a more generous child tax credit. Republicans chose to let those tax cuts expire — while making other measures like a lower 21 percent corporate rate permanent — in a bet that Democrats would eventually vote to protect them.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    A White-Collar Indictment Shatters Representative Henry Cuellar’s Blue-Collar Image

    Representative Henry Cuellar started from humble origins, but records show he welcomed the trappings of power afforded by his position.Over the years, Representative Henry Cuellar often harked back to the small house in Laredo, Texas. It was there that his parents, one-time migrant workers who spoke no English, raised him and his seven siblings to value hard work and beware the dangers of debt.The references in speeches, campaign advertisements and interviews were intended to forge affinity with the largely Hispanic residents of his hometown. They demonstrated that “I am one of you,” as his campaign website put it in 2004, when he first won election to Congress as a Democrat representing Laredo, one of the poorest cities in the country.By 2013, those hardscrabble beginnings seemed a distant memory.Mr. Cuellar had become the hub of a bustling small enterprise that blurred the lines between his political operation, his businesses and his family, affording him trappings of affluence even as he sometimes strained to make ends meet.He had recently purchased a penthouse apartment in Washington’s bustling Navy Yard neighborhood near Nationals Park and a pair of properties in Laredo, including a 6,000-square-foot house with a pool and cabana in a gated community on a street called Estate Drive. He took on an increasing amount of debt, and his net worth declined.A new source of cash soon revealed itself, federal prosecutors are now saying.Starting in 2014, Mr. Cuellar and his wife, Imelda Cuellar, accepted at least $598,000 over seven years from a Mexican bank and an oil company owned by the Azerbaijani government, according to prosecutors.The Cuellars were charged earlier this month with accepting bribes, money laundering and violating foreign lobbying laws by trying to influence the government on behalf of their foreign paymasters. They pleaded not guilty and were released after each paid a bond of $100,000.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Charges Against Cuellar Lay Bare Azerbaijan’s Influence Attempts

    Federal prosecutors say Representative Henry Cuellar tried to shape policy for Azerbaijan in exchange for bribes. The country has spent millions in the past decade lobbying Washington.As tensions flared over disputed territory in the Caucasus region in the summer of 2020, Azerbaijan’s squadron of high-priced Washington lobbyists scrambled to pin the blame on neighboring Armenia and highlight its connections to Russia.Unbeknown to members of Congress, Azerbaijan had an inside man who was working closely with the Azerbaijani ambassador to Washington at the time on a parallel line of attack, according to text messages released by federal prosecutors.Representative Henry Cuellar, a Texas Democrat now charged with accepting bribes and acting as a foreign agent in a yearslong scheme, indicated in a text that he planned a legislative maneuver to try to strip funding from Armenia because it hosted Russian military bases.Azerbaijan’s ambassador responded enthusiastically.“Your amendment is more timely than ever,” the ambassador, Elin Suleymanov, wrote to Mr. Cuellar. “It is all about Russian presence there,” added Mr. Suleymanov, who referred to the congressman as “Boss.” Mr. Cuellar’s legislative gambit did not go far. But by the time of the text exchange, his family had accepted at least $360,000 from Azerbaijani government-controlled companies since December 2014, according to a federal indictment unsealed in Houston on Friday.The 54-page indictment highlights the importance of U.S. policymaking to foreign interests, and the lengths to which they go to try to shape it to their advantage, notwithstanding high risks and sometimes questionable results.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    A Chinese Firm Is America’s Favorite Drone Maker — Except in Washington

    U.S. authorities consider DJI a security threat. Congress is weighing legislation to ban it, prompting a lobbying campaign from the company, which dominates the commercial and consumer drone markets.The drones circled over the caves and crevices scattered around the mountain trails in northern Utah, feeding real-time video back to a search team on the ground looking for a missing hiker. Nineteen minutes later, they had her coordinates, bringing the rescue — a drill — closer to conclusion.“In this kind of environment, that’s actually pretty quick,” said Kyle Nordfors, a volunteer search and rescue worker. He was operating one of the drones, made by the Chinese company DJI, which dominates sales to law enforcement agencies as well as the hobbyist market in the United States.But if DJI’s drones are the tool of choice for emergency responders around the country, they are widely seen in Washington as a national security threat.DJI is on a Defense Department list of Chinese military companies whose products the U.S. armed forces will be prohibited from purchasing in the future. As part of the defense budget that Congress passed for this year, other federal agencies and programs are likely to be prohibited from purchasing DJI drones as well.The drones — though not designed or authorized for combat use — have also become ubiquitous in Russia’s war against Ukraine.Launching a DJI drone in the Donetsk region of Ukraine in March 2023.Tyler Hicks/The New York TimesCommercially available DJI drones have been widely used throughout Ukraine’s war with Russia.David Guttenfelder for The New York TimesWe are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Pro-Israel Lobby Faces Challenges Amid Gaza War and Shifting Politics

    AIPAC, long influential with both parties in Washington, is drawing criticism from Democrats for trying to defeat incumbents while it struggles to move aid for Israel through Congress.AIPAC, the pro-Israel group that has long been among Washington’s most powerful lobbying forces, is facing intense challenges as it seeks to maintain bipartisan support for Israel amid the war in Gaza — even as it alienates some Democrats with its increasingly aggressive political tactics.While AIPAC has traditionally been able to count on strong backing from members of both parties, it has taken on a more overtly political role in recent years by helping fund electoral challenges to left-leaning Democrats it considers insufficiently supportive. The tension has been exacerbated by divisions in the Democratic Party over Israel against the backdrop of a rising civilian death toll in Gaza and the barriers placed on humanitarian aid by Prime Minister Benjamin Netanyahu.AIPAC has also had to confront the tangled politics of foreign aid on Capitol Hill, where money for Israel is caught up in the dispute over providing assistance to Ukraine. Under the sway of former President Donald J. Trump, many of AIPAC’s traditional allies on the right have opposed additional funds for Ukraine, blocking the House from moving ahead with legislation that would also provide billions to Israel. It is a standoff that the group has so far been unable to help resolve.“I think they’re in a bit of an identity crisis,” Martin S. Indyk, who was the U.S. ambassador to Israel under President Bill Clinton and was a special envoy for Israeli-Palestinian peace talks under President Barack Obama, said of AIPAC. “It gets disguised by their formidable ability to raise money, but their life has become very complicated.”AIPAC’s aggressiveness and the challenges it faces were evident this week when the group — formally the American Israel Public Affairs Committee — brought together roughly 1,600 donors and senior lawmakers from both parties, including Speaker Mike Johnson and Senator Chuck Schumer of New York, the Democratic majority leader, to rally support and show its muscle. Mr. Netanyahu spoke to the group by video link on Tuesday.A separate video montage that played for donors at the conference featured Democratic members of Congress criticizing Israel or expressing support for the Palestinians. Officials at AIPAC, which is led by Howard Kohr, its chief executive, pressed donors to finance the group’s efforts to defeat some of the members. A panel included two challengers running against Democratic incumbents targeted by AIPAC.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Fed Chair Powell Signals a Retreat on Banking Rules

    The Fed chair said regulators could scale back or rework a sweeping capital-requirements proposal that Wall Street has been fighting for months.Jay Powell, the Fed chair, stunned Wall Street yesterday with an apparent U-turn in bank regulation.Kenny Holston/The New York TimesJay Powell’s surprise For months, Wall Street C.E.O.s have been complaining bitterly and lobbying against the prospect of higher capital requirements, which would require them to keep more money on hand and would lower their profits. It appears they have scored a big win.Jay Powell dropped the bombshell in his testimony before the House on Wednesday. Markets were still digesting the Fed chair’s go-slow comments on interest rate cuts when he signaled that proposed new rules to force lenders to beef up their books would be scaled back, or reworked.“I do expect that there will be broad and material changes to the proposal,” he said.The capital rules, known as the “Basel III Endgame,” would apply to the largest banks. They would have to set aside a bigger emergency cushion to soak up losses stemming from shocks like the bank run last year that led to the collapse of Silicon Valley Bank and prompted a wider crisis.But the proposals have come under fire from bank chiefs, industry lobbyists, Republican lawmakers and even some liberal members of Congress, who fear that a mandate to set aside billions to fight the next potential crisis could feed another one.Critics fear that Basel III would crimp lending just as banks grapple with upheaval in commercial real estate. Lenders face a looming “maturity wall” of as much as $1.5 trillion in commercial real estate loans set to come over the next two years.That risk came into blaring focus during Powell’s testimony. The stock price of New York Community Bank, a Long Island-based lender with a mountain of souring real estate loans, plummeted on news it was seeking emergency funding. (More on that below.)We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Hunter Biden Charged With Evading Taxes on Millions From Foreign Firms

    The Justice Department charged President Biden’s son after a long-running and wide-ranging investigation with substantial political repercussions.A federal grand jury charged Hunter Biden on Thursday with a scheme to evade federal taxes on millions in income from foreign businesses, the second indictment against him this year and a major new development in a case Republicans have made the cornerstone of a possible impeachment of President Biden.Mr. Biden, the president’s son, faces three counts each of evasion of a tax assessment, failure to file and pay taxes, and filing a false or fraudulent tax return, according to the 56-page indictment — a withering play-by-play of personal indulgence with potentially enormous political costs for his father.The charges, filed in California, came five months after he appeared to be on the verge of a plea deal that would have avoided jail time and potentially granted him broad immunity from future prosecution stemming from his business dealings. But the agreement collapsed, and in September, he was indicted in Delaware on three charges stemming from his illegal purchase of a handgun in 2018, a period when he used drugs heavily and was prohibited from owning a firearm.The tax charges have always been the more serious element of the inquiry by the special counsel, David C. Weiss, who began investigating the president’s son five years ago as the Trump-appointed U.S. attorney for Delaware. Mr. Weiss was retained when President Biden took office in 2021.Mr. Biden “engaged in a four-year scheme to not pay at least $1.4 million in self-assessed federal taxes he owed for tax years 2016 through 2019,” Mr. Weiss wrote.“Between 2016 and Oct. 15, 2020, the defendant spent this money on drugs, escorts and girlfriends, luxury hotels and rental properties, exotic cars, clothing, and other items of a personal nature, in short, everything but his taxes,” he added.If convicted, he could face a maximum of 17 years in prison, Justice Department officials said.Read the Tax Indictment Against Hunter BidenThe president’s son was indicted on nine counts accusing him of evading federal taxes on millions of dollars he has made in his work with foreign companies.Read Document 56 pagesThe charges, while serious, were far less explosive than ones pushed by Mr. Trump and congressional Republicans, who have been angry with the department for failing to find wider criminal wrongdoing by the president’s son and family.But the failure of Mr. Biden’s lawyers to reach a new settlement after talks with Mr. Weiss fell apart has now subjected Mr. Biden to the perils of two criminal proceedings in two jurisdictions, with unpredictable outcomes.Many of the facts laid out in Thursday’s indictment were already widely known, and the litany of Mr. Biden’s actions tracks closely with a narrative he drafted with prosecutors in the plea deal that collapsed over the summer under the withering scrutiny of a federal judge in Delaware.Prosecutors said that he “subverted the payroll and tax withholding process of his own company,” Owasco PC, by withdrawing millions from the coffers that he used to subsidize “an extravagant lifestyle rather than paying his tax bills.” They also accused him of taking false business deductions.Mr. Weiss called out Mr. Biden for failing to pay child support and his reliance on associates, including the Hollywood lawyer Kevin Morris, to pay his way. Prosecutors included a chart that tracked the cash he siphoned from Owasco’s coffers — $1.6 million in A.T.M. withdrawals, $683,212 for “payments — various women,” nearly $400,000 for clothing and accessories, and around $750,000 for restaurants, health and beauty products, groceries, and other retail purchases.Throughout the document, Mr. Weiss presented an unflattering split-screen of Mr. Biden, scooping up millions in income and gifts from friends while stubbornly refusing to pay his taxes. That pattern even persisted into 2020, after he had borrowed money to pay off his tax liabilities from the previous few years, prosecutors wrote.“Defendant spent $17,500 each month, totaling approximately $200,000 from January through Oct. 15, 2020, on a lavish house on a canal in Venice Beach, Calif.,” they wrote, adding that “the I.R.S. stood as the last creditor to be paid.”In a statement, Abbe Lowell, Mr. Biden’s lawyer, said Mr. Weiss had “bowed to Republican pressure” and accused him of reneging on their previous agreement. He said the special counsel had not responded to his request for a meeting a few days ago to discuss the details of the case.“If Hunter’s last name was anything other than Biden, the charges in Delaware, and now California, would not have been brought,” he said.The indictment includes a more detailed description of Mr. Biden’s activities and tangled business deals than the government had previously made public. Taken in its totality, the filing paints a damning portrait of personal irresponsibility by a man who leveraged his last name to finance his vices while willfully ignoring his tax liabilities.The Hunter Biden case sits at the crowded intersection of America’s colliding political and legal systems. There is now a very real prospect that President Biden’s son will be defending himself in two federal criminal trials during a presidential election year — as former President Donald J. Trump, his father’s likely opponent, confronts the possibility of two federal criminal trials in his classified documents and election interference cases.The additional charges come on the cusp of a vote by the Republican-led House to formalize its impeachment inquiry into President Biden, which is largely based on unsubstantiated allegations that he benefited from his son’s lucrative consulting work for companies in Ukraine and China.Republican leaders in the House released draft text of a procedural impeachment resolution against President Biden on Thursday, just hours before word of the new charges started to percolate through official Washington. It is not clear what effect the indictment will have on their inquiry.The indictment contains no reference to President Biden. But prosecutors pointed out that Hunter Biden’s compensation from Burisma, a Ukrainian energy company, dropped from $1 million a year in 2016, when his father was still in office, to $500,000 in March 2017, two months after he left office.The decision to indict the president’s troubled son was an extraordinary step for Mr. Weiss, who was named a special counsel in August by Attorney General Merrick B. Garland.The Justice Department has been investigating Mr. Biden since at least 2018. Despite examining an array of matters — including Hunter Biden’s work for Burisma, ties to oligarchs and business deals in China — the investigation ultimately narrowed to questions about his taxes, like his failure to file his 2017 and 2018 returns on time, and the gun purchase.The special counsel, David C. Weiss, has been investigating an array of issues surrounding Hunter Biden.Will Oliver/EPA, via ShutterstockThe investigation appeared to have come to a conclusion in June when Mr. Weiss and Mr. Biden’s lawyers announced that Mr. Biden would plead guilty to two misdemeanor tax charges.As part of the deal, prosecutors charged Mr. Biden with lying about whether he was using drugs but, under a so-called pretrial diversion agreement, agreed not to prosecute Mr. Biden on that. In return, Mr. Biden agreed to admit that he had used drugs at the time of the purchase and the deal remained contingent on him remaining drug free for the next two years.But the deal abruptly imploded.At a hearing in July, Judge Maryellen Noreika of the Federal District Court in Wilmington, Del., sharply questioned elements of the deal, telling the two sides repeatedly that she had no intention of being “a rubber stamp.”One objection centered on a provision that would have offered Mr. Biden broad insulation against further prosecution on matters under scrutiny during the federal inquiry. Mr. Weiss’s prosecutors and Mr. Biden’s lawyer at the time, Christopher J. Clark, disagreed on whether that shielded him from being prosecuted in connection with his foreign business dealings.The other objection had to do with the diversion program on the gun charge, under which the judge would play a role in determining whether Mr. Biden was meeting the terms of the deal.Judge Noreika said she was not trying to sink the agreement, but to strengthen it by ironing out ambiguities and inconsistencies. But by the end, the sides had splintered, prosecutors filed paperwork indicating they would proceed with a prosecution and the embattled Mr. Weiss requested to be named special counsel, which requires him to file a report at the conclusion of the investigation.Since taking control of the House in January, top Republicans have used their new investigative power to push the narrative that the president has been complicit in an effort engineered by Hunter Biden to enrich his family by profiting from their positions of power, especially through business and investment transactions abroad.The investigation has become a central focus of House Republicans, and of Mr. Trump, who has seized upon it as a counter to his own legal woes. Earlier this year, two former I.R.S. agents who worked on the investigation testified before a House committee that they had been discouraged from fully investigating interactions of Hunter Biden and his father, and that Mr. Weiss had complained that he did not have the authority to expand the investigation to other jurisdictions.Mr. Weiss denied those claims.On Thursday, Representative James R. Comer of Kentucky, the chairman of the House oversight committee, credited the “two brave I.R.S. whistle-blowers” for forcing Mr. Weiss to abandon plea negotiations and file charges.“The Department of Justice got caught in its attempt to give Hunter Biden an unprecedented sweetheart plea deal,” Mr. Comer said in a statement, adding that the men should be applauded “for their courage to expose the truth.”Luke Broadwater More