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    Consumer Bureau Seeks to Undo Settlement and Repay Mortgage Lender

    The Consumer Financial Protection Bureau wants to return a $105,000 penalty it collected last fall when it resolved a discrimination lawsuit.Under President Trump, the Consumer Financial Protection Bureau has dropped nearly a dozen enforcement cases brought during the Biden administration, ending lawsuits against banks and lenders for a variety of financial practices that the watchdog agency no longer considers illegal.But on Wednesday, the bureau went a step further: It is seeking to give back $105,000 that a mortgage lender paid to settle racial discrimination claims last fall.In an especially strange twist, the case — against Townstone Financial, a small Chicago-based lender — was brought during Mr. Trump’s first term by Kathleen Kraninger, the director he appointed to run the consumer bureau.Russell Vought, who became the agency’s acting director last month, said it had “used radical ‘equity’ arguments to tag Townstone as racist with zero evidence, and spent years persecuting and extorting them.”In its filing asking the U.S. District Court for the Northern District of Illinois to set aside the settlement it approved in November, the bureau said it had found “significant undisclosed problems” in its handling of the lawsuit, which the new leadership called an “unmerited” complaint that violated the defendants’ First Amendment free-speech rights.The case began in 2020 when the consumer bureau accused Townstone of redlining and breaking fair-lending laws by discouraging residents living in majority-Black neighborhoods from applying for its housing loans. It homed in on comments made during the company’s radio show and podcast, “The Townstone Financial Show,” saying they were intended to rebuff Black borrowers or those seeking to buy homes in certain neighborhoods.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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    Trump Loses Bid to Pause Ruling on Federal Funding Freeze

    The ruling let stand a district court judge’s order that had blocked agencies from categorically pausing federal funds based on guidance from the Office of Management and Budget.A federal appeals court on Wednesday left in place a lower court’s ruling that blocked the Office of Management and Budget from enacting a sweeping freeze on federal funding to states, writing that it posed an obvious risk to states that depend on the money.The decision denied a request from the Trump administration to stay a ruling by Judge John J. McConnell Jr. of the Federal District Court for the District of Rhode Island this month. Judge McConnell found that the administration had effectively subverted Congress in choking off funds in ways that jeopardized state governments and the services they provide their residents.A coalition of nearly two dozen attorneys general from Democratic-led states had sued in January to halt the freeze. They argued that the funding, including critical disaster relief disbursed by the Federal Emergency Management Agency and early childhood education support provided through Head Start, had all been thrown into doubt.In their opinion, a three-judge panel of the U.S. Court of Appeals for the First Circuit wrote that the freeze would cause the states an array of irreparable harms, including forced taking on of debt, “impediments to planning, hiring and operations,” and disruptions to research projects underway at state universities.In its original guidance at issue in the lawsuit, the Office of Management and Budget had advised agencies that the pause pertained only to funding streams that were affected by some of President Trump’s early executive orders, such as those aimed at ending diversity, equity and inclusion programs and climate change funds.The states behind the lawsuit, however, argued that the pause had been conducted chaotically and had caused significant upheaval, preventing them from gaining access to federal grants that seemed to fall outside those orders.As an example, in a filing on Wednesday night, an assistant attorney general from Illinois said that the state was still unable to attain money through the Earthquake State Assistance grant program.In their opinion declining to stay Judge McConnell’s preliminary injunction, the judges wrote that the states had documented numerous cases of “pauses, freezes, and sudden terminations of obligated funds” suggesting that the freeze on federal funds was often indiscriminate. The arbitrary nature of the freeze, they wrote, further suggested that the coalition of states was likely to prevail in the lawsuit. More

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    Trump Administration Deflects Blame for Leak at Every Turn

    It was a hoax. The information wasn’t classified. Somehow the journalist got “sucked into” the Signal chat, either deliberately or through some kind of technical glitch.In the days since the editor in chief of The Atlantic revealed he had been inadvertently included in a group chat of top U.S. officials planning a military strike on Houthi militants in Yemen, senior members of the Trump administration have offered a series of shifting, sometimes contradictory and often implausible explanations for how the episode occurred — and why, they say, it just wasn’t that big a deal.Taken together, the statements for the most part sidestep or seek to divert attention from the fundamental fact of what happened: Defense Secretary Pete Hegseth used Signal, an unclassified commercial app, to share sensitive details about an imminent attack in an extraordinary breach of national security.Here’s a look at the main players and what they’ve said about what happened, and how much their reasoning matches up with what transpired.President Trump said the Atlantic’s article was a “witch hunt” and called the journalist a “total sleazebag.”President Trump told reporters on Wednesday that the fervor over the Atlantic’s article was “all a witch hunt,” suggesting that perhaps Signal was faulty, and blaming former President Joseph R. Biden Jr. for not having carried out the strike on Yemen during his administration.“I think Signal could be defective, to be honest with you,” he said, after complaining that “Joe Biden should have done this attack on Yemen.” The fact that he didn’t, Mr. Trump added, had “caused this world a lot of damage and a lot of problems.” While the Trump administration has criticized Mr. Biden for not being aggressive enough against the Houthis, his administration led allied nations in several attacks on Houthi sites in Yemen in 2024.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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    Judge Extends Pause on Firings of Probationary Workers for 5 Days

    The judge said he needed more time to determine whether a longer-term halt should apply to the entire country or be restricted to certain states while the case proceeds.A federal judge in Maryland on Wednesday extended a temporary pause in the Trump administration’s efforts to fire probationary workers at more than a dozen federal agencies by five days.The judge, James K. Bredar of the Federal District Court in Maryland, said he needed more time to determine whether a longer-term halt to the government’s firing of probationary employees should apply to the entire country or be restricted to certain states while the case proceeds.Nineteen states and the District of Columbia sued the federal government, arguing they were irreparably harmed when the government fired thousands of probationary employees en masse in February, leaving states to face unemployment spikes without warning. Judge Bredar’s order earlier this month called for the workers’ reinstatement.During a hearing on Wednesday, Judge Bredar said he was wary of issuing a longer halt to the government’s firings that would apply to the entire country when 31 states have decided not to participate in the case. He cited recent criticism that district courts had exceeded their authority in ordering nationwide halts to Trump administration programs. Of the lawsuit’s plaintiffs, all of the attorneys general are Democrats.Lawyers for the states and Washington, D.C., say that when the administration conducts mass firings, as it did in February, the harm can spill over to other states, even if they are not joining this lawsuit. This is why a preliminary injunction needs to apply to more than just the participants, one of the lawyers, Virginia Anne Williamson with the Maryland Attorney General’s Office, said on Wednesday.For example, if a preliminary injunction were restricted to the states that brought the lawsuit, the federal government could resume firing probationary employees in Virginia, which is not part of the suit. But in the case of an employee who works in Virginia and lives in Maryland, which is a party in the lawsuit, Maryland suffers from the firings, the suit argues, because it could have to provide support services for its unemployed resident.“This is murky,” Judge Bredar said on Wednesday, adding that the court “has to wade into the swamp here and figure out if it can’t draft something more restrictive than across the country.”Judge Bredar’s reinstatement order, issued on March 13, overlaps with court-mandated reinstatements of probationary employees in two other cases.Many of the agencies have reinstated employees and issued back pay for the time between their firings and the court orders. Most agencies are placing the reinstated employees on administrative leave, which the Trump administration has told the court is part of the process of returning them to their jobs.The Department of Housing and Urban Development, however, is not providing back pay to the fired workers, said Ashaki Robinson, president of the local American Federation of Government Employees union representing workers at that agency. Ms. Robinson said that could change if Judge Bredar made back pay part of a future order. More

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    A Musk Lawsuit in Wisconsin Is the Backdrop to the State’s Supreme Court Race

    A legal battle over Tesla sales in Wisconsin is the quiet backdrop to a big State Supreme Court race.I was driving from Eau Claire, Wis., to Minneapolis last week when I saw the sign.A Tesla sign.Soon after I crossed the St. Croix River, which divides Wisconsin and Minnesota, a brick-and-steel tower visible from Interstate 94 advertised the Tesla store and service center in Lake Elmo, Minn.The dealership’s proximity to the state line is probably no accident: Wisconsin law prohibits vehicle manufacturers from selling cars directly to customers there, the way Tesla usually does. Instead, companies need to work through local franchisees — think Hank’s Ford or Jimmy’s Subaru, that sort of thing.This means that, in Wisconsin, you can’t actually stroll into a dealership and leave with a Tesla. You can look at one — the company has showrooms in Madison and Milwaukee — but if you want one, you’ll generally have to buy it online and pick it up somewhere like Lake Elmo or Northern Illinois, or have it delivered.Tesla sued Wisconsin over this law in January. Now, Tesla’s owner, Elon Musk, is spending big money on the state’s Supreme Court race.The lawsuit has become a major focus for Democrats, who are accusing Musk of trying to buy a justice and swing the very court that might at some point consider his lawsuit. My colleagues Reid Epstein, who writes about national politics, and Neal Boudette, who covers the auto industry, teamed up to explore the relationship between the lawsuit and Musk’s $20 million investment — so far — in the judicial election, which will be held on April 1.The politics of Tesla’s fight with Wisconsin are, like so much involving Musk, kind of topsy-turvy. It pits car dealers, who tend to be Republican, against Musk supporters, who these days also tend to be Republican.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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    Senate Democrats Seek Answers on Firing of Justice Dept. Official

    After a disagreement about giving gun rights back to the actor Mel Gibson, a pardon attorney was fired. Senate Democrats are asking for details, including records or emails, that relate to the decision.Senate Democrats pressed Justice Department officials on Wednesday to explain the firing of the pardon attorney, Elizabeth G. Oyer, who was dismissed amid a disagreement with her superiors about whether to restore the actor Mel Gibson’s right to own guns.Ms. Oyer was one of a number of senior career officials at the Justice Department who were abruptly ousted this month. No reason was cited for the dismissals, but Ms. Oyer told The New York Times that senior department officials pressured her to add Mr. Gibson, an outspoken supporter of President Trump, to a list of people with past convictions who could nevertheless have their gun rights returned to them.The campaign, she said, incited fears that she could be fired over it. Senior Justice Department officials have said the dispute was not the reason for her dismissal.Democrats on the Judiciary Committee, including Senator Richard J. Durbin of Illinois, sent a letter to Attorney General Pam Bondi seeking answers about Ms. Oyer’s firing. Her dismissal, they added, was “particularly troubling in light of the Trump administration’s purge of public servants, seemingly based on whether they are willing to carry out the president’s agenda of political retribution against his perceived enemies.”Senate Democrats are now asking Ms. Bondi to provide an explanation for Ms. Oyer’s firing, the names of the people involved in the move and any records or emails that relate to the decision.“It is vitally important that D.O.J. attorneys be permitted to pursue justice for the United States of America and the American people,” the Democrats wrote, “not serve as the personal law firm to President Trump, handing out legal favors to his rich and famous friends.”Mr. Gibson has not been able to buy a firearm since he pleaded no contest in 2011 to misdemeanor battery against a former girlfriend.The Trump administration has decided that the Justice Department should create a path for gun rights to be restored to some people with convictions. During internal department conversations on the subject, Ms. Oyer said she was particularly worried about giving gun rights to people with domestic violence convictions.“This isn’t political,” she said. “This is a safety issue.”Last week, the department moved forward with its plan to restore gun rights to some convicts, publishing a notice in the Federal Register about the initiative. Still unclear is exactly what criteria will be used to decide who is eligible. A senior Justice Department official has suggested this is only the first of a number of steps the administration plans to make on guns, including making it easier for people to buy silencers, also known as suppressors. More

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    Why Elon Musk and Tesla Have a Legal Bone to Pick With Wisconsin

    As the billionaire and his allied groups pour more than $20 million into a race for the state’s top court, his car company is suing Wisconsin over a law restricting vehicle sales.Elon Musk is far and away the biggest spender in this year’s race for the Wisconsin Supreme Court, throwing his fortune behind a conservative candidate aiming to topple the court’s 4-to-3 liberal majority.The deluge of cash — $20 million and counting from Mr. Musk and groups tied to him — comes as his electric car company, Tesla, is suing Wisconsin over its law prohibiting vehicle manufacturers from selling cars directly to consumers. The law requires a franchisee to act as a middleman.Tesla filed the lawsuit in January, days before Mr. Musk began spending on the race. He has not publicly mentioned the litigation, but for weeks it has served as a backdrop of the April 1 election. The case is now before a court in Milwaukee County, but it could proceed to the Wisconsin Supreme Court in the coming months.The conservative candidate, Brad Schimel, a Waukesha County judge who has declined to discuss the Tesla case, appeared with Mr. Musk on a social media livestream on Saturday and drew President Trump’s endorsement late last week. He faces Susan Crawford, a liberal Dane County judge backed by Wisconsin Democrats.Since Mr. Musk began spending to help Judge Schimel, Judge Crawford and Wisconsin Democrats have built their public messaging around the idea that she is in a battle with the billionaire leading Mr. Trump’s destruction of the federal government.“It is no coincidence that Elon Musk started spending that money within days of Tesla filing a lawsuit in Wisconsin,” Judge Crawford said during a televised debate this month.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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    U.S. to End Vaccine Funds for Poor Countries

    A 281-page spreadsheet obtained by The Times lists the Trump administration’s plans for thousands of foreign aid programs.The Trump administration intends to terminate the United States’ financial support for Gavi, the organization that has helped purchase critical vaccines for children in developing countries, saving millions of lives over the past quarter century, and to significantly scale back support for efforts to combat malaria, one of the biggest killers globally.The administration has decided to continue some key grants for medications to treat H.I.V. and tuberculosis, and food aid to countries facing civil wars and natural disasters.Those decisions are included in a 281-page spreadsheet that the United States Agency for International Development sent to Congress Monday night, listing the foreign aid projects it plans to continue and to terminate. The New York Times obtained a copy of the spreadsheet and other documents describing the plans.The documents provide a sweeping overview of the extraordinary scale of the administration’s retreat from a half-century-long effort to present the United States to the developing world as a compassionate ally and to lead the fight against infectious diseases that kill millions of people annually.The cover letter details the skeletal remains of U.S.A.I.D. after the cuts, with most of its funding eliminated, and only 869 of more than 6,000 employees still on active duty.In all, the administration has decided to continue 898 U.S.A.I.D. awards and to end 5,341, the letter says. It says the remaining programs are worth up to $78 billion. But only $8.3 billion of that is unobligated funds — money still available to disburse. Because that amount covers awards that run several years into the future, the figure suggests a massive reduction in the $40 billion that U.S.A.I.D. used to spend annually.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