Business
Commentary: How the Carolina wildfires are, perversely, good news for California
To address the most important point up front: The wildfires currently spreading across North and South Carolina are tragic.
Thousands of acres have been burned by hundreds of fires since Saturday, taking property and placing livelihoods at risk. There are no reports of fire-driven deaths, as yet, but evacuations have been ordered and emergency declarations made. Firefighters continue to struggle to bring the blazes under control. The causes include unusually dry conditions and wind gusts of up to 40 mph.
That said, the Carolina fires may have a positive result that will be felt coast to coast, and especially in California: They’re likely to quell all that stupid talk about attaching strings to federal wildfire disaster relief.
The moment Texas or Florida or Mississippi experiences a disaster, that idea will vanish.
— Sen. Brian Schatz (D-Hi.) on the idea of attaching strings to California disaster aid
That threat has been made by Trump; his disaster czar, Ric Grenell; House Speaker Mike Johnson (R-La.); Sen. John Barrasso (R-Wyo.), a member of that chamber’s GOP leadership; and Rep. Byron Donalds (R-Fla.), among many others. Also pitching in are members of the right-wing peanut gallery, such as Fox News mouthpieces Sean Hannity and Jesse Watters.
What they’ve tend to have in common is a focus on California policies that had nothing to do with the fires in Pacific Palisades and Altadena but have been long-term targets of conservatives and Republicans.
Grenell called for the California Coastal Commission to be “defunded,” for instance. He didn’t explain what that had to do with the fires, but he called its policies “crazy woke left,” whatever that means. (The commission’s authority to regulate real estate development in the coastal zone, thus angering the developers who are among the GOP’s patrons, may have more to do with Grenell’s complaint.)
The others’ points were equally nonsensical. Trump rehearsed his long-discredited claim that California’s water supply has been wasted to serve the interests of the tiny delta smelt, an innocent bystander. Johnson talked of “our concerns with the governance of the state of California,” which he airily blamed for “complicity … in the scope of disaster.” Donalds said that “if a state is so grossly mismanaged that the initial disaster is not quickly contained, then we have a responsibility to do common-sense things.”
On the CBS program “Face the Nation,” Barrasso asserted that “the policies of the liberal administration” in California “have made these fires worse.”
Before examining the natural disasters that have afflicted these blowhards’ own backyards, it’s proper to note that this isn’t California’s first encounter with political shortsightedness on this majestic scale.
In 1905, a flawed canal cut on the banks of the Colorado River produced a massive flood that threatened to destroy the Imperial Valley, which already was producing crops worth $2 million a year. By the mid-1920s, the valley’s efforts had placed a bill before Congress to pay for a high dam on the Colorado to hold back any further flood threats while providing water for irrigation.
The measure ran into opposition from President Coolidge and his Treasury secretary, the multimillionaire Andrew Mellon, who thought private enterprise should take on the task. Across the Southeast, farmers and their elected officials raised further objections. Cotton growers objected to irrigating 1 million acres in the Imperial Valley, corn farmers objected to a million more acres of corn, and wheat growers to a million competing acres of wheat.
But then nature intervened, with a massive flood in 1927 that killed 246 residents of the Mississippi River valley and breached levees along a thousand-mile stretch of the river. Rep. Phil Swing, who had been elected by Imperial Valley voters with the express goal of bringing the dam measure past the goal line, made sure that nobody overlooked the parallels between the 1927 flood and the disaster at home.
Trainloads of New Orleans business and civic leaders came to Washington to plead for relief. “I took on the New Orleans men,” Swing recalled, “putting to them again and again whether they could see any difference between the Mississippi’s flood threat to their people and the Colorado River flood threat to the people of the Imperial Valley.”
Two landmark federal measures were born as a result: the Flood Control Act of 1928, which created a levee construction program costing an unprecedented $300 million, and the Boulder Canyon Project Act, which authorized the construction of a $165-million high dam on the Colorado, eventually to be christened Hoover Dam.
That brings us back to the present day, and the old adage, “What goes around comes around.”
Republican politicians, to be fair, aren’t unanimous about calling for strings to be attached to disaster relief for California. Among the holdouts are many members of the North and South Carolina delegations, in part because the most recent hurricanes to sweep across the region killed 200 people and caused more than $10 billion in damage — and that happened only last September.
“I would ask those folks to put themselves in the same position as people of western North Carolina,” Sen. Thom Tillis (R-N.C.) said of colleagues who have raised the prospect of withholding aid to California. “You got to be consistent on disaster supplement, period.” Congress passed a$100-billion disaster relief bill after the hurricanes, no strings attached.
But other Republicans either have blinders on or short memories. Consider Barrasso’s home state, Wyoming. “Billion-dollar natural disasters are up 360% in Wyoming over the last 20 years,” according to a study funded by LendingTree and cited by LaramieLive.com. The state is especially vulnerable to wildfires, including a wind-blown fire in 2020 that scorched 177,000 acres, destroyed 66 properties and threatened Cheyenne’s drinking water with contamination.
Louisiana, Johnson’s home state? Since 2004, it’s been hit by 13 hurricanes as well as floods requiring federal assistance. If Johnson were to stick with his insistence that “governance” were to be a factor in the disbursement of federal assistance, observes Louisiana journalist Greg LaRose, the state might “no longer be entitled to federal assistance after hurricanes because state policy has allowed the fossil fuel industry to carve up its coastal marshes, making south Louisiana more susceptible to storm damage.”
The Census Bureau reported that Louisiana had the highest percentage of residents displaced by natural disasters of any state in 2023 — about 8.3%, compared with the national average of 1.6%.
Every state in the union has received federal disaster aid in recent years. How many of them would like to see political strings attached to the funding?
(Carnegie Endowment)
Florida? it might as well be called the “hurricane state,” with the damage caused by more than 20 hurricanes requiring federal aid since 2004, including last year’s Hurricane Milton, which brought some $1.5 billion in federal assistance in its aftermath.
Louisiana and Florida ranked first and second in the level of direct assistance from the Federal Emergency Management Agency and other government agencies from 2003 through 2024, according to an aid tracker compiled by the Carnegie Endowment for International Peace. Louisiana received $47 billion and Florida received $28 billion. California was in the middle of the pack, at $7.6 billion. Every single state received some level of federal assistance.
Barrasso, Donalds and Johnson didn’t reply to questions I sent through their congressional offices about their advocacy of attaching strings to assistance.
It isn’t only the cynicism of GOP politicians claiming to know the factors underlying disasters such as the California wildfires; it’s their evident ignorance of what those factors are.
They talk with cocksure confidence about the virtues of clearing forest floors, moving water hundreds of miles to get to the fire zone, to “crazy woke left” coastal policies, and on and on. But they don’t mention the most important factor: global warming, which they would prefer to wish away.
But they must know deep down that they’re spouting partisan claptrap. Sen. Brian Schatz (D-Hawaii), whose home state residents received $660 million in FEMA assistance after the Maui fire of 2023, according to the Carnegie database, knows how asinine, counterproductive and short-lived the idea of conditions on disaster relief will be in the end. “It’s never going to happen,” Schatz told HuffPost. “The moment Texas or Florida or Mississippi experiences a disaster, that idea will vanish.”
Business
Nike to Cut 1,400 Jobs as Part of Its Turnaround Plan
Nike is cutting about 1,400 jobs in its operations division, mostly from its technology department, the company said Thursday.
In a note to employees, Venkatesh Alagirisamy, the chief operating officer of Nike, said that management was nearly done reorganizing the business for its turnaround plan, and that the goal was to operate with “more speed, simplicity and precision.”
“This is not a new direction,” Mr. Alagirisamy told employees. “It is the next phase of the work already underway.”
Nike, the world’s largest sportswear company, is trying to recover after missteps led to a prolonged sales slump, in which the brand leaned into lifestyle products and away from performance shoes and apparel. Elliott Hill, the chief executive, has worked to realign the company around sports and speed up product development to create more breakthrough innovations.
In March, Nike told investors that it expected sales to fall this year, with growth in North America offset by poor performance in Asia, where the brand is struggling to rejuvenate sales in China. Executives said at the time that more volatility brought on by the war in the Middle East and rising oil prices might continue to affect its business.
The reorganization has involved cuts across many parts of the organization, including at its headquarters in Beaverton, Ore. Nike slashed some corporate staff last year and eliminated nearly 800 jobs at distribution centers in January.
“You never want to have to go through any sort of layoffs, but to re-center the company, we’re doing some of that,” Mr. Hill said in an interview earlier this year.
Mr. Alagirisamy told employees that Nike was reshaping its technology team and centering employees at its headquarters and a tech center in Bengaluru, India. The layoffs will affect workers across North America, Europe and Asia.
The cuts will also affect staffing in Nike’s factories for Air, the company’s proprietary cushioning system. Employees who work on the supply chain for raw materials will also experience changes as staff is integrated into footwear and apparel teams.
Nike’s Converse brand, which has struggled for years to revive sales, will move some of its engineering resources closer to the factories they support, the company said.
Mr. Alagirisamy said the moves were necessary to optimize Nike’s supply chain, deploy technology faster and bolster relationships with suppliers.
Business
Senate committee kills bill mandating insurance coverage for wildfire safe homes
A bill that would have required insurers to offer coverage to homeowners who take steps to reduce wildfire risk on their property died in the Legislature.
The Senate Insurance Committee on Monday voted down the measure, SB 1076, one of the most ambitious bills spurred by the devastating January 2025 wildfires.
The vote came despite fire victims and others rallying at the state Capitol in support of the measure, authored by state Sen. Sasha Renée Pérez (D-Pasadena), whose district includes the Eaton fire zone.
The Insurance Coverage for Fire-Safe Homes Act originally would have required insurers to offer and renew coverage for any home that meets wildfire-safety standards adopted by the insurance commissioner starting Jan. 1, 2028.
It also threatened insurers with a five-year ban from the sale of home or auto insurance if they did not comply, though it allowed for exceptions.
However, faced with strong opposition from the insurance industry, Pérez had agreed to amend the bill so it would have established community-wide pilot projects across the state to better understand the most effective way to limit property and insurance losses from wildfires.
Insurers would have had to offer four years of coverage to homeowners in successful pilot projects.
Denni Ritter, a vice president of the American Property Casualty Insurance Assn., told the committee that her trade group opposed the bill.
“While we appreciate the intent behind those conversations, those concepts do not remove our opposition, because they retain the same core flaw — substituting underwriting judgment and solvency safeguards with a statutory mandate to accept risk,” she said.
In voting against the bill Sen. Laura Richardson, (D-San Pedro), said: “Last I heard, in the United States, we don’t require any company to do anything. That’s the difference between capitalism and communism, frankly.”
The remarks against the measure prompted committee Chair Sen. Steve Padilla, (D-Chula Vista), to chastise committee members in opposition.
“I’m a little perturbed, and I’m a little disappointed, because you have someone who is trying to work with industry, who is trying to get facts and data,” he said.
Monday’s vote was the fourth time a bill that would have required insurers to offer coverage to so-called “fire hardened” homes failed in the Legislature since 2020, according to an analysis by insurance committee staff.
Fire hardening includes measures such as cutting back brush, installing fire resistant roofs and closing eaves to resist fire embers.
Pérez’s legislation was thought to have a better chance of passage because it followed the most catastrophic wildfires in U.S. history, which damaged or destroyed more than 18,000 structures and killed 31 people.
The bill was co-sponsored by the Los Angeles advocacy group Consumer Watchdog and Every Fire Survivor’s Network, a community group founded in Altadena after the fires formerly called the Eaton Fire Survivors Network.
But it also had broad support from groups such as the California Apartment Association, the California Nurses Association and California Environmental Voters.
Leading up to the fires, many insurers, citing heightened fire risk, had dropped policyholders in fire-prone neighorhoods. That forced them onto the California FAIR Plan, the state’s insurer of last resort, which offers limited but costly policies.
A Times analysis found that that in the Palisades and Eaton fire zones, the FAIR Plan’s rolls from 2020 to 2024 nearly doubled from 14,272 to 28,440. Mandating coverage has been seen as a way of reducing FAIR Plan enrollment.
“I’m disappointed this bill died in committee. Fire survivors deserved better,” Pérez said in a statement .
Also failing Monday in the committee was SB 982, a bill authored by Sen. Scott Wiener, (D-San Francisco). It would have authorized California’s attorney general to sue fossil fuel companies to recover losses from climate-induced disasters. It was opposed by the oil and gas industry.
Passing the committee were two other Pérez bills. SB 877 requires insurers to provide more transparency in the claims process. SB 878 imposes a penalty on insurers who don’t make claims payments on time.
Another bill, SB 1301, authored by insurance commissioner candidate Sen. Ben Allen, (D-Pacific Palisades), also passed. It protects policyholders from unexplained and abrupt policy non-renewals.
Business
How We Cover the White House Correspondents’ Dinner
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Politicians in Washington and the reporters who cover them have an often adversarial relationship.
But on the last Saturday in April, they gather for an irreverent celebration of press freedom and the First Amendment at the Washington Hilton Hotel: The White House Correspondents’ Association dinner.
Hosted by the association, an organization that helps ensure access for media outlets covering the presidency, the dinner attracts Hollywood stars; politicians from both parties; and representatives of more than 100 networks, newspapers, magazines and wire services.
While The Times will have two reporters in the ballroom covering the event, the company no longer buys seats at the party, said Richard W. Stevenson, the Washington bureau chief. The decision goes back almost two decades; the last dinner The Times attended as an organization was in 2007.
“We made a judgment back then that the event had become too celebrity-focused and was undercutting our need to demonstrate to readers that we always seek to maintain a proper distance from the people we cover, many of whom attend as guests,” he said.
It’s a decision, he added, that “we have stuck by through both Republican and Democratic administrations, although we support the work of the White House Correspondents’ Association.”
Susan Wessling, The Times’s Standards editor, said the policy is a product of the organization’s desire to maintain editorial independence.
“We don’t want to leave readers with any questions about our independence and credibility by seeming to be overly friendly with people whose words and actions we need to report on,” she said.
The celebrity mentalist Oz Pearlman is headlining the evening, in lieu of the usual comedy set by the likes of Stephen Colbert and Hasan Minhaj, but all eyes will be on President Trump, who will make his first appearance at the dinner as president.
Mr. Trump has boycotted the event since 2011, when he was the butt of punchlines delivered by President Barack Obama and the talk show host Seth Meyers mocking his hair, his reality TV show and his preoccupation with the “birther” movement.
Last month, though, Mr. Trump, who has a contentious relationship with the media, announced his intention to attend this year’s dinner, where he will speak to a room full of the same reporters he often derides as “enemies of the people.”
Times reporters will be there to document the highs, the lows and the reactions in the room. A reporter for the Styles desk has also been assigned to cover the robust roster of after-parties around Washington.
Some off-duty reporters from The Times will also be present at this late-night circuit, though everyone remains cognizant of their roles, said Patrick Healy, The Times’s assistant managing editor for Standards and Trust.
“If they’re reporting, there’s a notebook or recorder out as usual,” he said. “If they’re not, they’re pros who know they’re always identifiable as Times journalists.”
For most of The Times’s reporters and editors, though, the evening will be experienced from home.
“The rest of us will be able to follow the coverage,” Mr. Stevenson said, “without having to don our tuxes or gowns.”
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