Business
Commentary: These federal judges are building a legal wall against Trump’s assault on transgender rights
President Trump wasted no time before turning the right wing’s cherished assault on transgender rights into government policy.
On the very day of his inauguration, he issued an executive order titled, “Defending Women from Gender Ideology Extremism and Restoring Biological Truth to the Federal Government.”
The order purported to “recognize two sexes, male and female,” as federal policy. “These sexes are not changeable,” it stated. It labeled “gender ideology” and “gender identity” as a “false claim.”
Congress never authorized a roving mandate to regulate and alter state-licensed medical care.
— U.S. Judge Mark Kearney of Philadelphia
The order directed federal agencies to “remove all statements, policies, regulations, forms, communications, or other internal and external messages that promote or otherwise inculcate gender ideology.”
About a week later, Trump posted an order banning federal spending on gender-affirming therapies for children, which he defined as “mutilation” based on “junk science.”
Under Atty Gen. Pam Bondi, Trump’s Justice Department took action. On July 9, Bondi boasted of having sent “more than 20 subpoenas to doctors and clinics involved in performing transgender medical procedures on children.”
In her news release, Bondi said the subpoenas targeted “medical professionals and organizations that mutilated children in the service of a warped ideology.”
That’s when Trump’s campaign ran into a judicial brick wall. In recent weeks at least three federal judges blocked some of these subpoenas as flagrantly illicit overreach.
At least two questioned the DOJ’s actions in these cases, with one warning that a federal official’s inaccurate declaration could be interpreted as perjury. Another implied that a DOJ filing in his courtroom might have reflected “deliberate misuse … of court procedure.” (I am indebted to Chris Geidner of Lawdork.com for pulling these facts together.)
These cases raise questions about the professionalism of Trump’s DOJ that have been raised by other federal courts on other topics. Those include the invalidation of the appointments of three U.S. Attorneys put in place to pursue criminal charges against Trump’s political enemies, and the rejection by grand juries of indictments proposed by Trump-appointed prosecutors.
“The Department has defeated many of these lawsuits all the way up to the Supreme Court and will continue to defend the President’s agenda with the utmost professionalism,” a DOJ spokeswoman told me by email.
The transgender cases may have a more personal effect on millions of struggling youths and families. As I’ve written, the Trumpian hand-wringing over the “mutilation” of children via gender-affirming therapy or surgery melds medical ignorance with fantasy.
Therapies such as puberty blockers or hormone treatments typically are administered to minors only after painstaking medical consultations, and actual surgeries aren’t commonly performed on minors by reputable medical providers.
Trump made an assault on transgender treatments a plank in his campaign platform, spinning a weird claim that schools had been subjecting innocent children to secret operations. “The school decides what’s gonna happen with your child,” he said. “And you know, many of these childs [sic] 15 years later say, ‘What the hell happened? Who did this to me?’” None of that happens in the real world.
After the Supreme Court invalidated bans on same-sex marriage in 2015, Republican strategists found “the struggle over trans rights” to be “an especially potent wedge issue,” observes political scientist Paisley Currah, a professor of women’s and gender studies at Brooklyn College, in a new report in the New York Review of Books.
Their target, Currah writes, is “a very small proportion of the population (roughly 2.8 million people above the age of thirteen), not well understood by most Americans, living in ways that confounded common assumptions about sex.”
For the most part, this war has unfolded at the state level. North Carolina passed its notorious “bathroom bill,” requiring residents to use only the bathrooms designated for the sex on their birth certificates, in 2016. The measure drew widespread threats of boycotts by sports leagues and corporations, prompting its repeal the following year.
Legislators soon found an approach more tolerable for the public: banning transgender women from participating in women’s sports. In 2015 there were 21 antitrans bills introduced in state legislatures; in 2025 there were more than 1,000.
In June the Supreme Court’s six-member conservative majority appeared to bless this approach by turning away a challenge to a Tennessee law that bans puberty blockers and hormones for trans youth, even when parents and physicians prescribe them. With this ruling, Justice Sonia Sotomayor wrote in a ringing dissent, “the Court abandons transgender patients and their families to political whims.”
She might have added that Trump’s intimidation works. Medical providers coast-to-coast, including Children’s National Hospital in Washington, D.C., and Kaiser Permanente, ended gender-affirming care for minors to avoid legal hassles; some institutions even ended such care for adults, although that care isn’t targeted by the government.
None of that means that there aren’t guardrails on the federal antitrans campaign, which brings us back to the judges placing a collar on the DOJ.
In the most recent ruling issued Nov. 21, federal Judge Mark Kearney of Philadelphia took aim at subpoenas Bondi served on Children’s Hospital of Philadelphia. Purporting to be investigating the mislabeling and misuse of puberty blockers and hormones, the DOJ demanded the hospital’s “billing and insurance records, communications with manufacturers and sales representatives, and the names and complete medical and psychological records of children receiving gender-affirming care,” Kearney wrote.
The hospital acceded to most of this request, but did not provide the identities of its child patients and their families and their confidential medical files.
Kearney quashed those subpoenas, ruling that the privacy rights of the children and their families “substantially outweighs” the DOJ’s “need to know the children’s names, addresses, and treatment.”
Kearney noted that federal law left questions about medical care entirely to the states; policy disagreements such as those pitting the DOJ against the hospital are not federal crimes. “Congress never authorized a roving mandate to regulate and alter state-licensed medical care,” he wrote.
He also focused on a declaration filed in court on Oct. 6 by DOJ official Lisa K. Hsiao, stating that “the government is aware of a lawsuit filed just this year” with “allegations of a minor being put on puberty blockers after his first visit and cross-sex hormones after his second with no meaningful assessment.”
As it happens, there is no such lawsuit. The day after Hsaio’s declaration was filed “under penalty of perjury,” Kearney observed, it was withdrawn and replaced with one that removed the reference to a lawsuit and substituted the claim that the government was aware only of “concerning allegations” about the treatment.
The hospital said in court that it hadn’t been served with any such lawsuit. Kearney questioned “the veracity of Director Hsiao’s sworn statements” and noted that DOJ lawyers agreed with him that “false statements may be subject to a perjury investigation.”
Kearney’s ruling followed one issued Sept. 9 by federal Judge Myong Joun of Boston. Joun quashed the entire subpoena issued to Boston Children’s Hospital seeking extensive information about its personnel and medical records of patients, including their Social Security numbers and home addresses.
“It is abundantly clear,” he wrote, that the administration’s “true purpose” is to interfere with the state’s right to authorize gender-affirming care, “to harass and intimidate BCH to stop providing such care, and to dissuade patients from seeking such care.”
In the third case, federal Judge Jamal Whitehead of Seattle on Oct. 27 threw out a subpoena the government served on QueerDoc, a telehealth provider serving patients in the West. The subpoena demanded complete personnel files for all QueerDoc employees and all private information about patients for whom it prescribed puberty blockers or hormones.
Whitehead concluded that the subpoena — compounded by Bondi’s news release — was aimed “not to investigate legal violations but to intimidate and coerce providers into abandoning lawful medical care.” (Emphasis his.)
Whitehead also found that a legal filing in which the DOJ cited legal gounds for the subpoena “represents a fundamental misunderstanding — or deliberate misuse — of court procedure”: Filings of its kind generally were used to correct minor clerical errors in a previously filed document, he noted, not for making new legal arguments after the deadline. In this case the filing underscored that the government was targeting “the provision of gender-affirming care itself, not any legitimate federal violation.”
The government appealed the Joun and Whitehead rulings though not, as yet, Kearney’s action. The battle to protect treatment for transgender youths is plainly not over.
Business
Startup Varda Space Industries snags former Mattel plant in El Segundo
In an expansion of its business of processing pharmaceuticals in Earth’s orbit, Varda Space Industries is renting a large El Segundo plant where toy manufacturer Mattel used to design Hot Wheels and Barbie dolls.
The plant in El Segundo’s aerospace corridor will be an extension of Varda Space Industries’ headquarters in a much smaller building on nearby Aviation Boulevard.
Varda will occupy a 205,443-square-foot industrial and office campus at 2031 E. Mariposa Ave., which will give it additional capacity to manufacture spacecraft at scale, the company said.
Originally built in the 1940s as an aircraft facility, the complex has a history as part of aerospace and defense industries that have long shaped the South Bay and is near a host of major defense and space contractors. It is also close to Los Angeles Air Force Base, headquarters to the Space Systems Command.
Workers test AstroForge’s Odin asteroid probe, which was lost in space after launch this year.
(Varda Space Industries)
Varda is one of a new generation of aerospace startups that have flourished in Southern California and the South Bay over the last several years, particularly in El Segundo, often with ties to SpaceX.
Elon Musk’s company, founded in 2002 in El Segundo, has revolutionized the industry with reusable rockets that have radically lowered the cost of lifting payloads into space. Though it has moved its headquarters to Texas, SpaceX retains large-scale operations in Hawthorne.
Varda co-founder and Chief Executive Will Bruey is a former SpaceX avionics engineer, and the company’s spacecraft are launched on SpaceX’s workhorse Falcon 9 rockets from Vandenberg Space Force Base in Santa Barbara County.
Varda makes automated labs that look like cylindrical desktop speakers, which it sends into orbit in capsules and satellite platforms it also builds. There, in microgravity, the miniature labs grow molecular crystals that are purer than those produced in Earth’s gravity for use in pharmaceuticals.
It has contracts with drug companies and also the military, which tests technology at hypersonic speeds as the capsules return to Earth.
Its fifth capsule was launched in November and returned to Earth in late January; its next mission is set in the coming weeks. Varda has more than 10 missions scheduled on Falcon 9s through 2028.
For the last several decades, the Mariposa Avenue property served as the research and development center for Mattel Toys. El Segundo has also long been a center for the toy industry as companies like to set up shop in the shadow of Mattel.
The Mattel facility “has always been an exceptional property with a legacy tied to aerospace innovation, and leasing to Varda Space Industries feels like a natural continuation of that story,” said Michael Woods, a partner at GPI Cos., which owns the property.
“We are proud to support a company that is genuinely pushing the boundaries of what’s possible, and are excited to watch Varda grow and thrive here in El Segundo,” Woods said.
As one of the country’s most active hubs of aerospace and defense innovation, El Segundo has seen its industrial property vacancy fall to 3.4% on demand from space companies, government contractors and technology startups, real estate brokerage CBRE said.
Successful startups often have to leave the neighborhood when they want to expand, real estate broker Bob Haley of CBRE said. The 9-acre Mattel facility was big enough to keep Varda in the city.
Last year, Varda subleased about 55,000 square feet of lab space from alternative protein company Beyond Meat at 888 Douglas St. in El Segundo, which it started moving into in June.
Varda will get the keys to its new building in December and spend four to eight months building production and assembly facilities as it ramps up operations. By the end of next year, it expects to have constructed 10 more spacecraft.
In the future, Varda could consolidate offices there, given its size. Currently, though, the plan is to retain all properties, creating a campus of three buildings within a mile of one another that are served by the company’s transportation services, Chief Operating Officer Jonathan Barr said.
“We already have Varda-branded shuttles running up and down Aviation Boulevard,” he said.
Business
How Iran War Is Threatening Global Oil and Gas Supplies
Ships near the Strait of Hormuz before and after attacks began
Every day, around 80 oil and gas tankers typically pass through the Strait of Hormuz, the narrow waterway off Iran’s southern coast that carries a fifth of the world’s oil and a significant amount of natural gas.
On Monday, just two oil and gas tankers appear to have crossed the strait, according to a New York Times analysis of shipping activity from Kpler, an industry data firm. Since then, one tanker passed through.
“It’s a de facto closure,” said Dan Pickering, chief investment officer of Pickering Energy Partners, a Houston financial services firm. “You’ve got a significant number of vessels on either side of the strait but no one is willing to go through.”
Tankers have been staying away from Hormuz since the U.S.-Israeli attacks on Iran that began on Saturday. A prolonged conflict could ripple broadly across the global economy, threatening the energy supplies of countries halfway around the world and stoking inflation.
International oil prices have climbed 12 percent since the fighting began, trading Tuesday around $81 a barrel, and natural gas prices have surged in Europe and in Asia.
A senior Iranian military official threatened on Monday to “set on fire” any ships traveling through the Strait of Hormuz. Vessels in the region have already come under attack. Several oil and gas facilities have also been struck or affected by nearby shelling, though the damage did not initially appear to be catastrophic.
Where ships and energy facilities have been damaged
A fire broke out Tuesday at a major energy hub in Fujairah, United Arab Emirates, from the falling debris of a downed drone, the authorities said. On Monday, Qatar halted production of liquefied natural gas, or fuel that has been cooled so that it can be transported on ships, after attacks on its facilities.
The sharp reduction in tanker traffic is reducing the supply of oil and gas to world markets, pushing up prices for both commodities. And the longer that ships stay away from the Strait of Hormuz, the less oil and gas get out to the world, which could raise prices even more.
Shipping companies have paused their tankers to protect their crew and cargo, and because insurance companies are charging significantly more to cover vessels in the conflict area.
On Tuesday, President Trump said that “if necessary,” the U.S. Navy would begin escorting tankers through the strait. He also said a U.S. government agency would begin offering “political risk insurance” to shipping lines in the area.
In addition to tankers, other large vessels regularly go through the strait, including car carriers and container ships. In normal conditions, nearly 160 make the trip each day.
Some ships in the region turn off the devices that broadcast their positions, while others transmit false locations — making it hard to give a full picture of the traffic in the strait.
The Shiva is a small oil tanker that has repeatedly faked its location, according to TankerTrackers.com, which tracks global oil shipments. It is suspected of carrying sanctioned Iranian oil, according to Kpler. The Shiva was one of the two tankers that crossed the strait on Monday.
The oil and gas that typically move through the strait come from big producing countries like Saudi Arabia, Iraq, Iran and United Arab Emirates, and are exported around the world.
Where tankers moving through the Strait have traveled
In 2024, more than 80 percent of the oil and gas transported through the Strait of Hormuz went to Asia. China, India, Japan and South Korea were the top importers, according to the U.S. Energy Information Administration.
Countries have energy stockpiles that could last them into the coming months, but a continued shutdown of the strait could damage their economies.
Several big disruptions have roiled supply chains in recent years, but the tanker standstill in the Strait of Hormuz could have an outsize impact.
Business
Paramount credit downgraded to ‘junk’ status over debt worries
Paramount Skydance’s jubilation over its come-from-behind victory to claim Warner Bros. Discovery has entered a new phase:
Call it the deal-debt hangover.
Two major ratings agencies have raised concerns about Paramount’s credit because of the enormous debt the David Ellison-led company will have to shoulder — at least $79 billion — once it absorbs the larger Warner Bros. Discovery, bringing CNN, HBO, TBS and Cartoon Network into the Paramount fold.
Fitch Ratings said Monday that it placed Paramount on its “negative” ratings watch, and downgraded its credit to BB+ from BBB-, which puts the company’s credit into “junk” territory. Fitch said it took action due to “uncertainty” surrounding Paramount’s $110-billion deal for Warner Bros. Discovery, which the boards of both companies approved on Friday.
S&P Global Ratings took similar action.
To finance the Warner takeover, Ellison’s billionaire father, Larry Ellison, has agreed to guarantee the $45.7 billion in equity needed. Bank of America, Citibank and Apollo Global have agreed to provide Paramount with more than $54 billion in debt financing.
“Potential credit risks include the prospective debt-funded structure, Fitch’s expectation of materially elevated leverage and limited visibility on post-transaction financial policy and capital structure,” Fitch said.
Late last week, Paramount sent $2.8 billion to Netflix as a “termination fee” to officially end the streaming giant’s pursuit of Warner Bros. That payment paved the way for Warner and Paramount’s board to enter into the new merger agreement.
Paramount hopes the merger will be wrapped up by the end of September. It needs the approval of Warner Bros. Discovery shareholders and regulators, including the European Union.
Paramount executives acknowledged this week the new company would emerge with $79 billion in debt — a considerably higher total than what Warner Bros. Discovery had following its spinoff from AT&T. That 2022 transaction left Warner Bros. Discovery with nearly $55 billion of debt, a burden that led to endless waves of cost-cutting, including thousands of layoffs and dozens of canceled projects.
Warner still has $33.5 billion in debt, a lingering legacy that will be passed on to Paramount.
Paramount plans to restructure about $15 billion in Warner Bros. Discovery’s existing debt.
Paramount CEO David Ellison at a 2024 movie premiere for a Netflix show.
(Evan Agostini / Invision / AP)
Paramount told Wall Street it would find more than $6 billion in cost cuts or “synergies” within three years — a number that has weighed heavily on entertainment industry workers, particularly in Los Angeles.
Hollywood already is reeling from previous mergers in addition to a sharp pullback in film and television production locally as filmmakers chase tax credits offered overseas and in other states, including New York and New Jersey.
Some entertainment executives, including Netflix Co-Chief Executive Ted Sarandos, have speculated that Paramount will need to find more than $10 billion in cost cuts to make the math work. More recently, Sarandos went higher, telling Bloomberg News that Paramount may need $16 billion in cuts.
Cognizant of widespread fears about additional layoffs, Paramount Chief Operating Officer Andrew Gordon took steps this week to try to tamp down such concerns.
Gordon is a former Goldman Sachs banker and a former executive with RedBird Capital Partners, an investor in Paramount and the proposed Warner Bros. deal. He joined Paramount last August as part of the Ellison takeover.
During a conference call Monday with analysts, Gordon said Paramount would look beyond the workforce for cuts because the company wants to maintain its film and TV production levels.
Paramount plans to look for cost savings by consolidating the “technology stacks and cloud providers” for its streaming services, including Paramount+ and HBO Max, Gordon said. The company also would search for reductions in corporate overhead, marketing expenses, procurement, business services and “optimizing the combined real estate footprint.”
It’s unclear whether Paramount would sell the historic Melrose Avenue lot or simply centralize the sprawling operations onto the Warner Bros. and Paramount lots in Burbank and Hollywood.
Workers are scattered throughout the region.
HBO, owned by Warner Bros. Discovery, maintains its West Coast headquarters in Culver City; CBS television stations operate from CBS’ former lot off Radford Avenue in Studio City; and CBS Entertainment and Paramount cable channels executive teams are located in a high-rise off Gower Street and Sunset Boulevard, blocks from the Paramount movie studio lot.
“The combination of PSKY and WBD could create a materially stronger business than either individual entity,” Standard & Poor’s said in its note to investors. “However, this transaction presents unique challenges because it would involve the combination of three companies, with the smallest, Skydance, being the controlling entity.”
David Ellison’s production firm, Skydance Media, was the entity that bought Paramount, creating Paramount Skydance.
Ellison has not announced what the combined company will be called.
Paramount shares closed down more than 6% Tuesday to $12.45.
Warner Bros. Discovery fell 1% to $28.20. Netflix added less than 1% to close at $97.70.
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