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      Inside the Crisis at NPR

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      NPR employees tuned in for a pivotal meeting late last year for a long-awaited update on the future of the public radio network.After many tumultuous months, marked by layoffs, financial turbulence and internal strife, they signed in to Zoom hoping to hear some good news from NPR’s leaders. What they got instead was a stark preview of the continued challenges ahead.“We are slipping in our ability to impact America, not just in broadcast, but also in the growing world of on-demand audio,” Daphne Kwon, NPR’s chief financial officer, told the group, according to a recording of the meeting obtained by The New York Times.For the past two weeks, turmoil has engulfed NPR after a senior editor assailed what he described as an extreme liberal bias inside the organization that has bled into its news coverage. The editor, Uri Berliner, said NPR’s leaders had placed race and identity as “paramount in nearly every aspect of the workplace” — at the expense of diverse political viewpoints, and at the risk of losing its audience.The accusations, leveled in an essay published in an online publication, The Free Press, led to a deluge of criticism from conservatives, including former President Donald J. Trump, who called for the network’s public funding to be pulled. The essay also generated vociferous pushback internally, with many journalists defending their work and saying Mr. Berliner’s essay distorted basic facts about NPR’s coverage.But NPR’s troubles extend far beyond concerns about its journalism. Internal documents reviewed by The New York Times and interviews with more than two dozen current and former public radio executives show how profoundly the nonprofit is struggling to succeed in the fast-changing media industry. It is grappling with a declining audience and falling revenue — and internal conflict about how to fix it.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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      Nonprofit Theaters Are in Trouble. Lawmakers Are Proposing Help.

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      Proposed legislation would allocate $1 billion annually for an industry coping with rising expenses and smaller audiences.The financial crisis facing nonprofit theaters in America has captured the attention of Congress, where a group of Democratic lawmakers is introducing legislation that would direct $1 billion annually to the struggling industry for five years.That money could be used for payroll and workforce development, as well as other expenses like rent, set-building and marketing. But the legislation, which lawmakers plan to introduce on Tuesday, faces long odds at a time when a divided Congress — where Republicans control the House and Democrats lead the Senate — has had trouble agreeing on anything.Nonprofit theaters around the country have reduced their programming and laid off workers to cope with rising expenses and smaller audiences since the coronavirus pandemic began. There are exceptions — some nonprofit theaters say they are thriving — but several companies, including New Repertory Theater in suburban Boston, Southern Rep Theater in New Orleans, and Book-It Repertory Theater in Seattle, have ceased or suspended operations in response to the crisis.“It hasn’t been a recovery for the nonprofits — they’re really lagging compared to many other sectors in the economy, and it’s for a lot of reasons,” Senator Peter Welch of Vermont, one of the legislation’s sponsors, said in an interview. “So they do need help.”Mr. Welch argued that the organizations merit government assistance because they strengthen communities and benefit local economies.The legislation, which is called the Supporting Theater and the Arts to Galvanize the Economy (STAGE) Act of 2024, is also being sponsored by Senators John Fetterman of Pennsylvania and Jack Reed of Rhode Island. Representative Suzanne Bonamici of Oregon is sponsoring it in the House.Senator Chuck Schumer of New York, who is the majority leader and who led the fight to win government aid for performing arts organizations during the pandemic, is supportive of the proposed legislation and is also open to other ways to assist nonprofit theaters, according to a spokesman.The pandemic aid package that Mr. Schumer championed serves as a precedent: In 2020, Congress passed the Save Our Stages Act, which led to a $16 billion Shuttered Venue Operators Grant program that made money available to a wide array of commercial and nonprofit performing arts organizations.Mr. Welch said the earlier aid program succeeded despite initial skepticism.“With everything else that was going on, the expectation was this would die on the vine, but it didn’t — as this started getting momentum, there was excitement about being about to do something concrete,” he said.The new legislation is narrower, benefiting only professional nonprofit theaters, and only those that have either seen a decline in revenues or that primarily serve historically underserved communities.“This is a beginning,” Mr. Welch said. “There are obstacles, but let the effort begin.” More

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      Lawsuit Against NRA Goes to Jury After Final Arguments

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      The case, brought by the New York attorney general, Letitia James, accused leaders of the National Rifle Association of corruption and misspending.Lawyers for New York State concluded their case against the National Rifle Association on Thursday, bringing an end to a closely watched civil showdown that accused leaders of the nation’s most prominent gun rights group of financial misconduct and corruption.Over the last six weeks, lawyers for New York’s attorney general, Letitia James, have outlined a case that paints the N.R.A. as a mismanaged organization with little fealty to its mission of defending the Second Amendment or to the gun owners who prize that right. Monica Connell, representing the attorney general’s office, began her closing arguments on Thursday by comparing the defendants to children who grabbed cookies from a jar and were “caught with crumbs on their face and on their shirt.”Central to the case has been the state’s depiction of the group’s former longtime leader, Wayne LaPierre, as a lavish spender who used N.R.A. funds to pay for private jets, luxury vacations, and the occasional spin on a superyacht. “This case is about corruption: Misuse of funds spent on jets, black cars, five-star hotels, hundreds of thousands of dollars of suits, million-dollar deals to insiders, payments to loyal board members and pervasive violations of internal controls,” Ms. Connell said to the nearly full courtroom in Manhattan.The jury is expected to begin deliberations on Friday.Mr. LaPierre, 74, stepped down just before the New York trial commenced, ending more than three decades as the head of the organization. He had nonetheless testified in the case, conceding to pricey trips and other perks. He also spent many days in the front row the courtroom, as government lawyers — and even his own — described his sometimes troubled leadership of the group.Along with Mr. LaPierre, the defendants included John Frazer, the N.R.A.’s general counsel; Woody Phillips, a former finance chief; and the N.R.A. itself.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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      Former Ohio Speaker Householder Faces Sentencing in Bribery Scheme

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      Larry L. Householder, former speaker of the Ohio House of Representatives, awaits sentencing on Thursday after being convicted of participating in a racketeering conspiracy that resulted in a bailout for two struggling nuclear power plants.It is, federal prosecutors say, perhaps the biggest public corruption scandal in Ohio’s history, a three-year conspiracy in which one of Ohio’s biggest corporations funneled some $60 million to one of the state’s most powerful politicians in exchange for a $1.3 billion bailout.And those investigators say they are only coming to the end of Act I.On Thursday, the former Republican speaker of the Ohio House of Representatives, Larry L. Householder, will be sentenced in federal court in Cincinnati for violating racketeering and bribery laws.The outlines of the charges have been known since his arrest, with four other men, three years ago: FirstEnergy Corporation, a Fortune 500 electric utility based in Akron, funneled the $60 million though various nonprofit entities. In return, Mr. Householder rammed a law through the state legislature that gave the company the bailout for two troubled nuclear power plants. Prosecutors have recommended a sentence of up to 20 years.But, as described early this year in a 26-day trial, the alliance between the utility and Mr. Householder, 64, was far more than a bribery scandal. Among other things, prosecutors and experts say, it was an almost cinematic example of how the dark money that pervades both state and federal politics slithers unseen from donor to beneficiary.It is also a cautionary tale about how state legislatures — second-rung political bodies that are often run by part-time politicians, but increasingly dealing with issues of national importance — are at least as prone to manipulation by special interests as their Washington counterparts.David DeVillers, who oversaw the federal investigation as the U.S. attorney in Cincinnati until early 2021, said in an interview that the gusher of dark money was crucial to the plot and an issue well beyond Ohio.“Any time you have a supermajority, whether it’s Republicans or Democrats, and industries that are based on passing laws like marijuana or sports gambling or energy, it’s a formula for corruption,” he said.In a memorandum on sentencing last week, Mr. Householder’s lawyer, Steven L. Bradley, said that his client had not admitted wrongdoing, and that Mr. Householder genuinely believed that the legislation enacting the bailout “was an important piece of legislation, which is why he advocated and voted for it.” The blare of publicity and the ignominy of conviction, Mr. Bradley wrote, had left Mr. Householder “a broken man.” In an email, Mr. Bradley said he plans to “vigorously pursue an appeal with the hope of winning a new trial.”Mr. Householder, a onetime insurance agent from an impoverished rural county in southeast Ohio, had been House speaker from 2001 to 2004. He left his legislative seat because of term limits and faced a federal corruption investigation after leaving the post then, but was not charged.After returning to the legislature in 2016, Mr. Householder secretly spent millions in 2018 to support Republican candidates for 21 seats in the State House — more than a fifth of the 99 seats — who would back his insurgent campaign to again become House speaker. He spent more millions on a media campaign to push the nuclear bailout law to passage, and then tens of millions on a scorched-earth crusade to undermine a ballot initiative that threatened to undo it.By the time he was arrested in July 2020, Mr. Householder was soliciting secret contributions from others seeking legislative favors — and plotting to change the State Constitution’s term limits clause to extend his tenure by 16 years.At each step, a web of political action committees and dummy nonprofit organizations called 501(c)(4)s, after their place in the federal tax code, ensured that money fueling the schemes could not be traced to Mr. Householder or FirstEnergy.“The scope of the conspiracy was unprecedented,” prosecutors wrote in their sentencing memorandum. “So was the damage it left in its wake, both in terms of its potential financial harm to Ohioans and its erosion of public trust.”In a wiretap disclosed during the trial, a lobbyist charged in the affair, Neil Clark, boasted to undercover F.B.I. agents about his handiwork.“I spent close to $20 million in the last eight weeks, $20 million,” he said. “FirstEnergy got $1.3 billion in subsidies, free payments.”He later added: “So what do they care about putting in $20 million a year for this thing?”FirstEnergy sought a bailout for two nuclear power plants, including this one in North Perry, Ohio.Amy Sancetta/Associated PressFirstEnergy had sought state subsidies for two nuclear power plants on the shore of Lake Erie for years when Mr. Householder returned to the State House in 2016. The company claimed that renewable energy and cheaper fuels had made both plants unprofitable.Mr. Householder left little doubt that he wanted his old job as speaker back. After his 2016 election, FirstEnergy’s chief executive at the time, Chuck Jones, invited him to fly on the company’s private jet to attend the inauguration of President Donald J. Trump.Over several days of socializing at high-end restaurants, prosecutors said, they discussed a deal: Mr. Householder needed money to regain the speaker’s post when its occupant left office in 2018. The company needed a legislative solution to its nuclear power woes.What began with a handshake became a multimillion-dollar political operation, with the money laundered through nonprofit groups allowed by the tax code to conceal donors’ names.“They can give as much or more to the (c)(4) and nobody would ever know,” the lobbyist, Mr. Clark, told Mr. Householder in another wiretapped conversation. “So you don’t have to be afraid.”Chuck Jones in 2015, when he was FirstEnergy’s president and chief executive.Phil Masturzo/Akron Beacon Journal, via Associated PressNeil Clark, a lobbyist, was also charged in the affair.Jonathan Quilter/The Columbus Dispatch, via USA Today NetworkWeeks later, Mr. Householder established a 501(c)(4) called Generation Now. Other nonprofits, both new and old, were rolled into the scheme: a PAC called Hardworking Ohioans, two new nonprofits and many more.Rivers of anonymous money — most, but not all, from FirstEnergy — began to flow. In one typical transaction, Generation Now shunted $1 million of FirstEnergy donations to the newly formed Coalition for Growth and Opportunity, whose only reported officer was a Kentucky lawyer who oversaw other nonprofits. The Coalition for Growth and Opportunity donated $1 million to its separate PAC, which spent it on media campaigns supporting Republicans friendly to Mr. Householder and opposing unfriendly ones.And so it went: At least $3 million spent in 2018 to elect Republicans backing Mr. Householder’s speaker ambitions. Nearly $17 million more in 2019 on a successful media campaign supporting House Bill 6, the legislation bailing out FirstEnergy nuclear plants.Clean energy advocates and the natural gas industry opposed the $1.3 billion measure, which propped up two unrelated coal-fired plants and solar energy projects besides the $1 billion nuclear subsidy. And when they began collecting signatures for a ballot initiative to overturn the bailout, FirstEnergy devoted another $38 million to quash that effort.The money paid for a private detective and bullies to disrupt signature gatherers, as well as a saturation advertising campaign claiming that China was “quietly invading our energy grid” with the help of opponents of the bailout.Backers considered it money well spent. When House Bill 6 became law in July 2019, Mr. Jones, the FirstEnergy chairman, sent a picture of Mount Rushmore to Samuel C. Randazzo, then the chairman of the state Public Utilities Commission. Supplanting the mountain’s four presidents were faces of the two men and executives at FirstEnergy and another utility.Below that, prosecutors said, was an all-capital-letters caption that extolled their political clout with a common sexual vulgarity.Meanwhile, Mr. Householder’s Generation Now nonprofit was already plowing new ground. In a wiretapped conversation in 2018, Mr. Householder said he was “expecting big things in (c)(4) money from payday lenders,” an industry that has lobbied federal and state officials against regulating high-interest loans to the poor.For some, the cost of exposure has been heavy.FirstEnergy fired its top executives. Later, it paid $234 million in fines to federal agencies and surrendered another $115 million in ill-gotten gains after admitting to large-scale fraud.Mr. Clark, the lobbyist, died by suicide in 2021 after publishing a book that alleged a lifetime of dirty deals in state politics.Federal prosecutors say their inquiry is continuing, although they have not said where it might lead.F.B.I. agents removing items from the home of Samuel C. Randazzo, then the Ohio Public Utilities Commission chairman, in 2020.Adam Cairns/The Columbus Dispatch, via Associated PressIn what was, in effect, a plea bargain with federal prosecutors, FirstEnergy confessed that it had given Mr. Randazzo $4.3 million “to further FirstEnergy Corp.’s interests” on nuclear and other issues in 2019, weeks before Gov. Mike DeWine named him to head the state Public Utilities Commission.Mr. Randazzo, who denies wrongdoing, has not been charged.Court filings and related lawsuits have referred to Governor DeWine and Lt. Gov. Jon Husted, who have said they were unaware of the illegal payments. Both supported House Bill 6, and Mr. DeWine benefited from hundreds of thousand of dollars in get-out-the-vote support from FirstEnergy during his 2018 election campaign. The company also donated $75,000 to his daughter’s failed bid for a local elective office.FirstEnergy, meanwhile, faces investigation by the federal Securities and Exchange Commission and shareholder lawsuits.And in the five states where it owns electric utilities, utility commissions are likely to require tens of millions of dollars in refunds to customers, in part involving scandal-related spending.On Wednesday, the company said in a statement that it “has accepted responsibility for its actions related to House Bill 6 and has taken significant steps to put past issues behind us.”“Today we are a different, stronger company with a sound strategy and focused on a bright future,” it added.Mr. DeVillers, the former U.S. attorney, said that nonprofits like those central to the FirstEnergy scandal have been largely ignored by law enforcement. Enforcement of restrictions in the federal tax code on 501(c)(4) groups has been lax.Dave Anderson, the communications director of the Energy and Policy Institute, a watchdog group that follows the energy industry, said that might now change.“This is a case that really illustrates how they can be used for criminal malfeasance,” he said, referring to nonprofits. Now, he said, lawyers who told clients that 501(c)(4) groups are safe conduits for secret cash may be “holding their breath and thinking, ‘Maybe the convictions will be thrown out.’” More

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      Ron DeSantis’s Use of Private Jets From Wealthy, Sometimes Secret Donors

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      As the Florida governor hopscotched the country preparing to run for president, a Michigan nonprofit paid the bills. It won’t say where it got the money.For Ron DeSantis, Sunday, Feb. 19, was the start of another busy week of not officially running for president.That night, he left Tallahassee on a Florida hotelier’s private jet, heading to Newark before a meet-and-greet with police officers on Staten Island on Monday morning. Next, he boarded a twin-jet Bombardier to get to a speech in the Philadelphia suburbs, before flying to a Knights of Columbus hall outside Chicago, and then home to his day job as governor of Florida.The tour and others like it were made possible by the convenience of private air travel — and by the largess of wealthy and in some cases secret donors footing the bill.Ahead of an expected White House bid, Mr. DeSantis has relied heavily on his rich allies to ferry him around the country to test his message and raise his profile. Many of these donors are familiar boosters from Florida, some with business interests before the state, according to a New York Times review of Mr. DeSantis’s travel. Others have been shielded from the public by a new nonprofit, The Times found, in an arrangement that drew criticism from ethics experts.Mr. DeSantis, who is expected to formally announce his candidacy next week, is hardly the first politician to take advantage of the speed and comfort of a Gulfstream jet. Candidates and officeholders in both parties have long accepted the benefits of a donor’s plane as worth the political risk of appearing indebted to special interests or out of touch with voters.But ethics experts said the travel — and specifically the role of the nonprofit — shows how Mr. DeSantis’s prolonged candidate-in-limbo status has allowed him to work around rules intended to keep donors from wielding secret influence. As a declared federal candidate, he would face far stricter requirements for accepting and reporting such donations.Mr. DeSantis has been traveling the country testing his message. He and his wife, Casey DeSantis, met this month with local Republicans in Cedar Rapids, Iowa.Haiyun Jiang/The New York Times“Voters deserve this information because they have a right to know who is trying to influence their elected officials and whether their leaders are prioritizing public good over the interests of their big-money benefactors,” said Trevor Potter, the president of Campaign Legal Center and a Republican who led the Federal Election Commission. “Governor DeSantis, whether he intends to run for president or not, should be clearly and fully disclosing who is providing support to his political efforts.”Representatives for the governor’s office and for Mr. DeSantis’s political operation declined to comment or provide details about who has arranged and paid for his flights.Mr. DeSantis has aggressively navigated his state’s ethics and campaign finance laws to avoid flying commercial. And he has gone to new lengths to prevent transparency: Last week, he signed a bill making travel records held by law enforcement, dating back to the beginning of his term, exempt from public records requests.Mr. DeSantis is still required to report contributions and expenses in his campaign finance records, but the new law probably prevents law enforcement agencies from releasing more details, such as itineraries, flight information or even lists of visitors to the governor’s mansion. (Mr. DeSantis says he is trying to address a security concern.)In February, Mr. DeSantis traveled to Newark on a jet owned by Jeffrey Soffer, a prominent hotel owner who, according to several lawmakers and lobbyists, has sought a change in state law that would allow him to expand gambling to his Miami Beach resort.The February trip and others were arranged by And To The Republic, a Michigan-based nonprofit, according to Tori Sachs, its executive director. The nonprofit formed in late January as Mr. DeSantis was beginning to test the national waters and quickly became a critical part of his warm-up campaign. It organized nearly a dozen speaking events featuring the governor in at least eight states.Ms. Sachs would not say how much was spent on the flights or who paid for them.Navigating the LoopholesIt is unclear how Mr. DeSantis will account for the trips arranged by the nonprofit without running afoul of state ethics laws. Florida generally bars officeholders from accepting gifts from lobbyists or people, like Mr. Soffer, whose companies employ lobbyists — unless those gifts are considered political contributions.But both Ms. Sachs and a person involved in Mr. DeSantis’s recent travel said they did not consider the trips political contributions or gifts. The person was not authorized to discuss the matter and spoke on condition of anonymity. The group’s practice “is to provide transportation for special guests,” Ms. Sachs said, “in full compliance with the law.”Florida ethics rules, however, give politicians plenty of loopholes. In some circumstances, for example, officeholders can accept paid travel to give speeches as part of their official duties. The state ethics commission has also allowed officeholders to accept gifts from lobbyists if they are channeled through third-party groups.Since taking office in 2019, Mr. DeSantis, who has worked in public service his entire career and reported a net worth of $319,000 last year, has steadily leaned on others to pick up the tab for private flights.His political committee has accepted private air travel from roughly 55 wealthy, mostly Florida-based contributors and companies associated with them, including the heads of oil and gas companies, developers and homebuilders, and health care and insurance executives, a Times analysis of campaign finance records shows.Additional travel donations were routed to the Republican Party of Florida, which Mr. DeSantis often used as a third-party pass-through.A half dozen lobbyists and donors who spoke with The Times said they became accustomed to calls from the governor’s political aides asking for planes — in at least one case, for a last-minute trip home from out of state and, more recently, for a flight to Japan.The Japan trip, which was part of an overseas tour that gave Mr. DeSantis a chance to show off his foreign policy chops, was considered part of the governor’s official duties and was organized in part by Enterprise Florida, a public-private business development group. But Mr. DeSantis’s office would not disclose how it was paid for or how he traveled. Enterprise Florida did not respond to requests for comment.DeSantis supporters at his election-night event last year, as he coasted to re-election.Scott McIntyre for The New York TimesMr. DeSantis’s office rarely releases information about nonofficial events. (In February, when he traveled to four states in one day, his public schedule simply read, “No scheduled events.”) And Mr. DeSantis has brushed off past criticism of his travel. In 2019, The South Florida Sun Sentinel revealed a previous flight to New York on a plane owned by Mr. Soffer. Mr. DeSantis said he had followed proper procedures.“It’s all legal, ethical, no issues there,” he told reporters.A spokeswoman for Mr. Soffer declined to comment.The Warm-Up CampaignSoon after winning re-election in November, the governor turned to building his national profile. He began traveling the country to visit with Republican activists, dine with donors, speak at events and promote a new book, “The Courage to Be Free: Florida’s Blueprint for America’s Revival.”Some of his travel was paid for by Friends of Ron DeSantis, a Florida political committee that supported his campaign for governor and reports its donors. The committee had more than $80 million on hand as recently as last month — money that is expected to be transferred to a federal super PAC supporting his presidential run.Since November, that committee has received 17 contributions for political travel from nine donors. They include Maximo Alvarez, an oil and gas distributor, and Morteza Hosseini, a Florida homebuilder who has frequently lent his plane to the governor and has become a close ally.But trips paid for by the nonprofit group, And To The Republic, do not appear in state records.The group is registered as a social welfare organization under Section 501(c)(4) of the federal tax code, meaning its primary activity cannot be related to political campaigns. Other prospective and official presidential candidates also have relationships to similar organizations, often called dark money groups because they are not required to disclose their donors.The nonprofit’s founder, Ms. Sachs, said it was formed to promote “state policy solutions that are setting the agenda for the country” and described Mr. DeSantis as one of the first elected officials to “partner” with the group. Another of those officials, Gov. Kim Reynolds of Iowa, has appeared at the group’s events in her home state — alongside Mr. DeSantis.And To The Republic has hosted Mr. DeSantis at events in South Carolina, Nevada and Iowa, all key early primary states. Some of those events were promoted as “The Florida Blueprint,” borrowing from Mr. DeSantis’s book title.The arrangement has made tracking Mr. DeSantis’s travel — and its costs — difficult. The Times and other news outlets used public flight trackers to verify the governor’s use of Mr. Soffer’s plane, which was first reported by Politico.Other trips arranged by the group include the Feb. 20 stops outside Philadelphia and Chicago and the return trip to Tallahassee, on which Mr. DeSantis flew on a plane registered to a company run by Charles Whittall, an Orlando developer. Mr. Whittall, who gave $25,000 to Mr. DeSantis’s political committee in 2021, said that he uses a leasing company to rent out his aircraft, and that he did not provide it as a political contribution.In March, he traveled to Cobb County, Ga., on a plane owned by an entity connected to Waffle House, the Georgia-based restaurant chain. The company did not respond to a request for comment.Other potential DeSantis rivals have made headlines for their use of private jets. Both as South Carolina governor and as ambassador to the United Nations, Nikki Haley faced criticism for flying on private planes owned by wealthy South Carolinians.In 2020, The Associated Press reported that donors gave hundreds of thousands of dollars in private air travel to Donald J. Trump’s fund-raising committee. The donors included Ben Pogue, a Texas businessman whose father later received a presidential pardon.Still, Mr. Trump — who owns his own plane — has repeatedly sought to draw attention to Mr. DeSantis’s travel, claiming the private planes were effectively campaign contributions and “Ron DeSantis is a full-time candidate for president.”Shane Goldmacher More

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      A Times Square Hotel Was Set To Become Affordable Housing. Then the Union Stepped In.

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      At the height of the Covid-19 pandemic, the Paramount Hotel, sitting empty in Times Square, was on the verge of turning into a residential building, offering a rare opportunity to create affordable housing in Midtown Manhattan.A nonprofit was planning to convert the hotel into apartments for people facing homelessness. But after 18 months of negotiations, the plan collapsed this year when a powerful political player intervened: the Hotel and Gaming Trades Council, the union representing about 35,000 hotel and casino workers in New York and New Jersey.The union blocked the conversion, which threatened the jobs of the workers waiting to return to the 597-room hotel. Under the union’s contract, the deal could not proceed without its consent.The Paramount reopened as a hotel this fall, an illustration of how the union has wielded its outsized political power to steer economic development projects at a critical juncture in New York City’s recovery.The pandemic presented a devastating crisis for the city’s hotel workers, more than 90 percent of whom were laid off. But as the union has fought harder to protect them, its political muscle has also drawn the ire of hotel operators and housing advocates, who say the group’s interests can be at odds with broader economic goals.After the conversion failed, the Paramount reopened this fall, saving about 160 hotel jobs.Ahmed Gaber for The New York TimesThe union’s impact ripples throughout New York. It can block or facilitate the conversion of large hotels into housing and homeless shelters, a consequential role in a year when homelessness in the city reached a record high of about 64,000 people. The union pushed for the accelerated expansion of casinos, which could transform the neighborhoods of the winning bids. And it was a driving force behind a new hotel regulation that some officials warned could cost the city billions in tax revenue.The union’s influence stems from its loyal membership and its deep pockets, both of which it puts to strategic use in local elections. Its political strength has resulted in more leverage over hotel owners, leading to stronger contracts and higher wages for workers.In this year’s New York governor’s race, the union was the first major labor group to endorse Gov. Kathy Hochul, whose winning campaign received about $440,000 from groups tied to the union. The group was also an early backer of Eric Adams, whose mayoral campaign was managed by the union’s former political director.“H.T.C. is playing chess while everyone else is playing checkers,” said Chris Coffey, a Democratic political strategist, referring to the union’s more common name, the Hotel Trades Council. “They’re just operating on a higher playing field.”Origins of the union’s powerHistorically, the Hotel Trades Council avoided politics until its former president, Peter Ward, started a political operation around 2008.Mr. Ward and the union’s first political director, Neal Kwatra, built a database with information about where members lived and worshiped and the languages they spoke. This allowed the union to quickly deploy Spanish speakers, for instance, to canvass in Latino neighborhoods during campaigns.Candidates noticed when the Hotel Trades Council, a relatively small union, would send 100 members to a campaign event while larger unions would send only a handful, Mr. Kwatra said.The Aftermath of New York’s Midterms ElectionsWho’s at Fault?: As New York Democrats sought to spread blame for their dismal performance in the elections, a fair share was directed toward Mayor Eric Adams of New York City.Hochul’s New Challenges: Gov. Kathy Hochul managed to repel late momentum by Representative Lee Zeldin. Now she must govern over a fractured New York electorate.How Maloney Lost: Democrats won tough races across the country. But Sean Patrick Maloney, a party leader and a five-term congressman, lost his Hudson Valley seat. What happened?A Weak Link: If Democrats lose the House, they may have New York to blame. Republicans flipped four seats in the state, the most of any state in the country.To recruit members into political activism, the union hosted seminars explaining why success in local elections would lead to better job protections. Afterward, members voted to increase their dues to support the union’s political fights, building a robust fund for campaign contributions. Rich Maroko, the president of the Hotel Trades Council, said the union’s “first, second and third priority is our members.”Ahmed Gaber for The New York TimesThe Hotel Trades Council ranked among the top independent spenders in the election cycle of 2017, when all 26 City Council candidates endorsed by the union won. Some of these officials ended up on powerful land use and zoning committees, giving the union influence over important building decisions in New York.In a huge victory before the pandemic, the union fought the expansion of Airbnb in New York, successfully pressuring local officials to curb short-term rentals, which the union saw as a threat to hotel jobs.Mr. Ward stepped down in August 2020, making way for the union’s current president and longtime general counsel, Rich Maroko, who earned about $394,000 last year in total salary, according to federal filings.The union’s sway has continued to grow. Some hotel owners, speaking on the condition of anonymity, say they are fearful of crossing the union, which has a $22 million fund that can compensate workers during strikes. In an interview, Mr. Maroko pointed out that the hotel industry is particularly vulnerable to boycotts.“The customer has to walk through that picket line,” he said, “and then they have to try to get a good night’s rest while there are people chanting in front of the building.”The Hotel Trades Council’s contract is the strongest for hotel workers nationwide, labor experts say. In New York City, where the minimum wage is $15 an hour, housekeepers in the union earn about $37 an hour. Union members pay almost nothing for health care and can get up to 45 paid days off.During the pandemic, the union negotiated health care benefits for laid-off workers, suspended their union dues and offered $1,000 payments to the landlords of workers facing eviction.Along the way, the union has become known for its take-no-prisoners approach to politics, willing to ally with progressives or conservatives, with developers or nonprofits — as long as they support the union’s goals.“There may be no union which has more discrete asks of city government on behalf of its members,” said Mark Levine, the Manhattan borough president, who was endorsed by the union. “You can’t placate them with nice rhetoric. To be a partner with them, you really need to produce.”Political wins during the pandemicLast year, the union scored a victory it had sought for more than a decade, successfully lobbying city officials to require a special permit for any new hotel in New York City.The new regulation allows community members, including the union, to have a bigger say over which hotels get built. The move is expected to restrict the construction of new hotels, which are often nonunion and long viewed by the Hotel Trades Council as the biggest threat to its bargaining power.Budget officials warned that the regulation could cost the city billions in future tax revenue, and some developers and city planners criticized the rule as a political payback from Mayor Bill de Blasio in the waning months of his administration after the union endorsed his short-lived presidential campaign in 2019. Mr. de Blasio, who did not return a request for comment, has previously denied that the union influenced his position.In the next mayoral race, the union made a big early bet on Mr. Adams, spending more than $1 million from its super PAC to boost his campaign. Jason Ortiz, a consultant for the union, helped to manage a separate super PAC to support Mr. Adams that spent $6.9 million.Mr. Ortiz is now a lobbyist for the super PAC’s biggest contributor, Steven Cohen, the New York Mets owner who is expected to bid for a casino in Queens.The union, which shares many of the same lobbyists and consultants with gambling companies, will play an important role in the upcoming application process for casino licenses in the New York City area. State law requires that casinos enter “labor peace” agreements, effectively ensuring that new casino workers will be part of the union.A new threatDuring the pandemic, as tourism stalled, there was growing pressure to repurpose vacant hotels. With New York rents soaring, advocates pointed to hotel conversions as a relatively fast and inexpensive way to house low-income residents.But the union’s contract, which covers about 70 percent of hotels citywide, presented an obstacle. A hotel that is sold or repurposed must maintain the contract and keep its workers — or offer a severance package that often exceeds tens of millions of dollars, a steep cost that only for-profit developers can typically afford.A plan to convert a Best Western hotel in Chinatown into a homeless drop-in center was scuttled by city officials after the effort failed to win the union’s endorsement.Ahmed Gaber for The New York TimesEarlier this year, Housing Works, a social services nonprofit, planned to convert a vacant Best Western hotel in Chinatown into a homeless drop-in center. There was opposition from Chinatown residents, but city officials signed off on the deal. It was set to open in May.Right before then, however, the Hotel Trades Council learned of the plan and argued that it violated the union’s contract.Soon, the same city officials withdrew their support, said Charles King, the chief executive of Housing Works. He said they told him that Mr. Adams would not approve it without the union’s endorsement. Mr. King was stunned.“Clearly they have the mayor’s ear,” Mr. King said, “and he gave them the power to veto.”A spokesman for the mayor said the city “decided to re-evaluate this shelter capacity to an area with fewer services,” declining to comment on whether the union influenced the decision.The Chinatown hotel remains empty.An obstacle to affordable housingIn the spring of 2021, state legislators rallied behind a bill that would incentivize nonprofit groups to buy distressed hotels and convert them into affordable housing. They sought the Hotel Trades Council’s input early, recognizing that the group had the clout to push then-Gov. Andrew M. Cuomo to oppose the bill, according to people involved in the discussions.The union supported the conversions, but only if they targeted nonunion hotels outside Manhattan. Housing groups have said that, unlike large Midtown hotels, nonunion hotels are not ideal candidates for housing because they tend to be much smaller and inaccessible to public transit.As a compromise to gain the union’s support, the bill allowed the Hotel Trades Council to veto any conversions of union hotels.“While we certainly support the vision of finding shelters and supportive housing for the people that need it,” Mr. Maroko said, “our first, second and third priority is our members.”One housing advocate involved in the legislation, who spoke on the condition of anonymity, said she warned elected officials that the veto provision would diminish the law’s effectiveness.The law, which passed last year, came with $200 million for conversions. Housing experts criticized the legislation for not sufficiently loosening zoning restrictions, prompting another law this spring that made conversions easier.Still, no hotels have been converted under the new law.Now, with tourism rebounding, housing nonprofits say the window of opportunity has largely passed.“It’s not like hotel owners are clamoring to sell the way they were two years ago,” said Paul Woody, vice president of real estate at Project Renewal, a homeless services nonprofit.How the Paramount deal endedIn the fall of 2020, the owners of the Paramount Hotel began discussing a plan to sell the property at a discount to Breaking Ground, a nonprofit developer that wanted to turn it into rent-stabilized apartments for people facing homelessness.But as the deal neared the finish line, Breaking Ground failed to anticipate pushback from the Hotel Trades Council. In a series of meetings last year, the union said its obligation was to fight for every hotel job and it proposed a range of solutions, including keeping union employees as housekeepers for residents. Breaking Ground, however, said the cost was too high.The nonprofit even asked Mr. Ward, the union’s former president, to help facilitate the conversion. Mr. Ward said he agreed to call Mr. Maroko to gauge his interest in Breaking Ground’s severance offer.This spring, lobbying records show, union representatives met with Jessica Katz, Mr. Adams’s chief housing officer, and other officials about the Paramount. Soon after, Ms. Katz called Breaking Ground and said city officials would not be able to make the conversion happen, according to a person familiar with the conversation. A spokesman for the mayor said the city “cannot choose between creating the housing the city needs and bringing back our tourism economy,” declining to comment on whether the union swayed the decision on the Paramount.The failed conversion saved about 160 hotel jobs, and the Paramount reopened to guests in September.It was a relief for workers like Sheena Jobe-Davis, who lost her job there in March 2020 as a front-desk attendant. She temporarily worked at a nonunion Manhattan hotel, making $20 less per hour than at the Paramount. She was ecstatic to get her old job back.“It is something I prayed and prayed for daily,” she said. More

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      Donors Worry About a Cash Crunch for Voter Registration Groups

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      People close to the groups, which had a big infusion of money in 2020, fear they might have to begin scaling back their programs.Several nonprofit groups that work to register voters are privately sounding the alarm about their finances, warning donors that they will have to begin scaling back their programs just as the country enters the homestretch of the midterm elections.It is a critical time. Today is National Voter Registration Day, and deadlines to register are fast approaching. In four states — Minnesota, South Dakota, Virginia and Wyoming — early voting begins at the end of this week.More established groups that have worked on voter registration for years have anticipated the cutbacks, knowing the traditional rhythms of lower-stakes midterm elections, and have planned accordingly. But other, newer organizations that sprung up amid a flood of donor interest during the 2020 election cycle have struggled to adapt to the changing circumstances.“To the extent that any organizations working on voter registration anywhere in the country are having issues getting fully funded for this cycle, I find that extremely concerning,” said Bruce Cohen, a Democratic donor and activist. “I would ask other potential donors — if not now, when?”The main targets of complaints among voter registration groups are the Democracy Fund, a foundation bankrolled by Pierre Omidyar, the billionaire founder of eBay; and the Open Society Foundations, the global philanthropy organization founded by the billionaire investor George Soros.Donor advisers said in interviews that the Democracy Fund and O.S.F. created the expectation that millions of dollars would be forthcoming for democracy-related programs in 2022, only to disappoint many of the would-be recipients months later.According to an email shared with The New York Times, branches of the two groups invited potential donors to the introduction of “the Roadmap for American Democracy” in June.“We will need to mobilize more than a billion dollars to uphold the integrity of our election process and ensure diverse, equitable participation,” the email read. The Open Society Foundations is going through a tumultuous transition period. As Soros has entered his 90s, he has handed over authority to his son Alex. Last year, my colleague Nicholas Kulish reported that the group had abruptly scaled back its giving worldwide as part of a “restructuring plan.”Press officers for O.S.F. denied that the organization had made promises it had not kept.“Our thought was that we were talking to donors over a longer period of time,” said Laleh Ispahani, a co-director of the Open Society Foundations’ U.S.-focused programs who has worked to enlist other donors. “We were always clear that you’re not saving democracy in a single election. That is a longer-term project.”The State of the 2022 Midterm ElectionsWith the primaries over, both parties are shifting their focus to the general election on Nov. 8.Inflation Concerns Persist: In the six-month primary season that has just ended, several issues have risen and fallen, but nothing has dislodged inflation and the economy from the top of voters’ minds.Times/Siena Poll: Our second survey of the 2022 election cycle found Democrats remain unexpectedly competitive in the battle for Congress, while G.O.P. dreams of a major realignment among Latino voters have failed to materialize.Echoing Trump: Six G.O.P. nominees for governor and the Senate in critical midterm states, all backed by former President Donald J. Trump, would not commit to accepting this year’s election results.Ohio Senate Race: The contest between Representative Tim Ryan, a Democrat, and his Republican opponent, J.D. Vance, appears tighter than many once expected.She said O.S.F. had already invested $40 million to $75 million in 2022 for programs related to democracy and voting rights. “We will never retreat from this space,” she said. “This is our bread and butter.”A representative for the Democracy Fund did not respond to a request for comment.“O.S.F. came through for us in a big way,” said Nse Ufot, the chief executive of the New Georgia Project, which was instrumental in registering tens of thousands of voters of color before Democrats’ victories in 2020 and early 2021.But, she added: “What we are seeing is an overall dip in fund-raising” to the broader coalition of groups that helped her group turn Georgia into a blue state through grass-roots community organizing and voter registration. “Folks who think Georgia is competitive do not understand what made Georgia competitive.”One reason for the funding difficulties is the hangover from 2020, when foundations and private donors poured millions into democracy-related projects, including voter registration. The Senate elections in Georgia in early 2021, along with Donald Trump’s attempts to overturn the 2020 presidential results, poured jet fuel on those efforts.“Donors got energized by the threat to democracy,” said a person who advises wealthy people on their political contributions and who insisted on anonymity. The person described a feeling of exhaustion among the donor class: “People left it all on the field.”At times, those efforts have blurred the line between neutral, nonprofit work and partisan advantage. An analysis by Ken Vogel and Shane Goldmacher of The New York Times, for instance, found that “15 of the most politically active nonprofit organizations that generally align with the Democratic Party spent more than $1.5 billion in 2020.”At the time, they reported, Democrats were “warning major donors not to give in to the financial complacency that often afflicts the party in power.”.css-1v2n82w{max-width:600px;width:calc(100% – 40px);margin-top:20px;margin-bottom:25px;height:auto;margin-left:auto;margin-right:auto;font-family:nyt-franklin;color:var(–color-content-secondary,#363636);}@media only screen and (max-width:480px){.css-1v2n82w{margin-left:20px;margin-right:20px;}}@media only screen and (min-width:1024px){.css-1v2n82w{width:600px;}}.css-161d8zr{width:40px;margin-bottom:18px;text-align:left;margin-left:0;color:var(–color-content-primary,#121212);border:1px solid var(–color-content-primary,#121212);}@media only screen and (max-width:480px){.css-161d8zr{width:30px;margin-bottom:15px;}}.css-tjtq43{line-height:25px;}@media only screen and (max-width:480px){.css-tjtq43{line-height:24px;}}.css-x1k33h{font-family:nyt-cheltenham;font-size:19px;font-weight:700;line-height:25px;}.css-ok2gjs{font-size:17px;font-weight:300;line-height:25px;}.css-ok2gjs a{font-weight:500;color:var(–color-content-secondary,#363636);}.css-1c013uz{margin-top:18px;margin-bottom:22px;}@media only screen and (max-width:480px){.css-1c013uz{font-size:14px;margin-top:15px;margin-bottom:20px;}}.css-1c013uz a{color:var(–color-signal-editorial,#326891);-webkit-text-decoration:underline;text-decoration:underline;font-weight:500;font-size:16px;}@media only screen and (max-width:480px){.css-1c013uz a{font-size:13px;}}.css-1c013uz a:hover{-webkit-text-decoration:none;text-decoration:none;}What we consider before using anonymous sources. Do the sources know the information? What’s their motivation for telling us? Have they proved reliable in the past? Can we corroborate the information? Even with these questions satisfied, The Times uses anonymous sources as a last resort. The reporter and at least one editor know the identity of the source.Learn more about our process.It’s not fully clear whether the complacency they feared has now arrived, or whether only certain groups have been disproportionally affected. Several people closely involved with the Democratic Party’s voter-registration plans said they were not aware of a systemic crisis.Among the groups affected, people familiar with their internal finances said, were the Voter Formation Project, which describes its mission as “increasing participation in local, state and national elections through digital communication, experimentation and knowledge sharing.” Tatenda Musapatike, the head of the Voter Formation Project, did not respond to an email seeking comment.But another reason for the budget shortfalls, people familiar with the situation said, was the sour state of the economy, which has led to belt-tightening across corporate America and in the world of institutional investors — including ones that regularly fund efforts like voter registration that are considered nonpartisan and politically safe.The wider contextAs On Politics reported in January, Republicans have begun to close the gap with Democrats in voter registration in major battleground states, including Florida, Pennsylvania and North Carolina.In Pennsylvania, for instance, the Democrats’ advantage in registrations shrank to 540,000 as of today, from 685,000 as of November 2020, according to an analysis by Politico.In 2020, the pandemic disrupted the party’s two main pathways for bringing in new voters: sign-ups at the Department of Motor Vehicles and face-to-face field work. Democratic candidates and party committees cut sharply back on door-knocking campaigns, while Republicans largely maintained their in-person canvassing programs.An analysis shared with The New York Times by Catalist, a Democratic data firm, showed that in 2020, the Democrats’ traditional edge in voter registration shrank to nine percentage points across 29 states — down from a 19-point advantage over Republicans in 2008.This year, as the pandemic has waned, groups aligned with Democrats, including unions and the League of Conservation Voters, have revived their field programs. And a surge of anger on the left and among young people over the Supreme Court’s ruling on abortion has led to an accompanying rise in new registrations for Democrats.But top Democrats have quietly discussed for months how to address what some officials see as a broader problem with the way the party handles voter registration.Traditionally, Democrats have relied on a mix of official, partisan voter registration drives conducted by state parties and candidates as well as outreach by nonprofit groups that are legally prohibited from targeting communities by their expected party affiliation.As Republicans have made gains, however — most notably in Florida, where the G.O.P. now has a registration edge of around 200,000 voters — senior Democrats have begun to question whether the party ought to bring more of those officially nonpartisan voter-registration campaigns in-house.For the 2022 cycle, the Democratic National Committee is spending nearly $25 million on its “I Will Vote” initiative, which includes voter protection, legal challenges and voter registration in battleground states, focused on communities of color and college campuses. The voter registration component of the program began with an initial investment of nearly $5 million, but has since expanded.The D.N.C. also began a blitz of publicity this week around National Voter Registration Day, featuring digital ads aimed at college students on Instagram, YouTube and other platforms. The committee also plans to fly banners during college football games nudging students to register.“This is the D.N.C.’s largest voter registration investment in a midterm cycle and marks a return to an aspect of party building that the D.N.C. has not engaged in for several cycles,” said Ammar Moussa, a spokesman for the committee.What to readA federal judge expressed skepticism about an attempt by Donald Trump’s lawyers to again skirt the issue of whether Trump had declassified some of the highly sensitive records seized from his Florida home by the F.B.I., Alan Feuer and Charlie Savage report.Newly released videos show allies of Trump and contractors who were working on his behalf handling sensitive voting equipment in a rural Georgia county weeks after the 2020 election, Danny Hakim, Richard Fausset and Nick Corasaniti report.A sleeper race in this year’s contests for Senate is also one of the sleepiest, Jonathan Weisman writes, as Ted Budd and Cheri Beasley face off in North Carolina, a state known for breaking Democrats’ hearts.Where in America is it easiest and hardest to vote? The state at the bottom of the rankings in a new academic study called the Cost of Voting Index might surprise you. Nick Corasaniti and Allison McCann lay out the details.Nate Cohn, The Times’s top polling expert, asks a perfectly reasonable question: Can we trust the polls?Thank you for reading On Politics, and for being a subscriber to The New York Times. — BlakeRead past editions of the newsletter here.If you’re enjoying what you’re reading, please consider recommending it to others. They can sign up here. Browse all of our subscriber-only newsletters here.Have feedback? Ideas for coverage? We’d love to hear from you. Email us at onpolitics@nytimes.com. More