Business
Will Meta’s Plan to End Fact Checking Work Politically?
Following the political winds
Meta’s bombshell announcement on Tuesday that it would end its fact-checking program was widely read as a major shift in policy meant to please President-elect Donald Trump and other conservatives.
In reality, the move was probably less radical than it initially seemed. But the turn still serves as a reminder that many corporate leaders see their highest priority as reading the room — one that Trump now dominates.
Mark Zuckerberg has been moving in this direction for some time. In relation to the 2016 election, the Meta chief, who has a history of tacking where political winds blow, followed other tech companies in partnering with fact-checking groups to police content on its platforms, including Facebook and Instagram. Since then, however, the tech mogul has fumed as Meta was criticized for both failing to do enough — and for removing too many user posts.
“It’s time to get back to our roots around free expression,” Zuckerberg said in a video announcing the changes, including a move to X-style user-policing known as Community Notes. (Katie Harbath, a former communications executive at Meta, told The Times, “This is an evolved return to his political origins.”)
The changes aren’t necessarily as big as they first appeared. Politico noted that Meta had been paring back its moderation efforts in recent years. And while Zuckerberg promoted plans to move such workers to Texas to “eliminate bias,” many such workers are already based there.
Zuckerberg isn’t alone: Tech companies haven’t ever wanted to be in the business of moderating user content. Last summer, YouTube began testing a version of Community Notes, though it was described as more of a supplemental feature.
Is the political payoff for Meta worth the criticism? Trump, who had railed against the company’s moves to police his content — including briefly shutting down his Facebook account after the Jan. 6, 2021, riot at the Capitol — said the tech giant had “come a long way.” (He also said his threats against Zuckerberg “probably” contributed to the new policy.)
Meta executives may hope that, along with the elevation of the longtime Republican executive Joel Kaplan to lead global affairs, a $1 million donation to the Trump inaugural fund and the addition of the Trump ally Dana White to its board, may get them into the president-elect’s good graces.
A factor worth watching: Zuckerberg said he would work with Trump to “push back against foreign governments going after American companies to censor more.” That was a thinly veiled shot against the European Union, which has sought to punish companies, including Meta, for insufficiently policing their platforms — and may increase its scrutiny of the tech giant after Tuesday’s move.
Will the move work? So far, advertisers aren’t publicly objecting. And Tuesday’s news most likely allays concerns that Trump regulatory picks, including Brendan Carr of the Federal Communications Commission, had about Meta.
But Senator Marsha Blackburn, Republican of Tennessee, wrote on X that Meta’s change was simply “a ploy to avoid being regulated.” She added, “We will not be fooled.”
HERE’S WHAT’S HAPPENING
Wildfires near Los Angeles force widespread evacuations. Parts of Santa Monica and the Pacific Palisades were hit by a blaze that destroyed homes and forced at least 30,000 to flee for safety. Another fire, near Pasadena, was also causing issues as officials warned of devastating losses.
Anthropic is close to raising billions more in capital. The artificial intelligence start-up is in advanced talks to collect $2 billion in a round led by Lightspeed Venture Partners, The Times reports. If completed, the fund-raising would value Anthropic at $60 billion — roughly three times as much as it was worth a year ago — in another sign that the deal making frenzy around A.I. shows no signs of slowing.
JPMorgan Chase reportedly plans to call employees back to the office five days a week. That’s up from the requirement of three days a week, according to Bloomberg, though about 60 percent of Wall Street giant’s staff is already at the office full time. Other major companies have already reduced or eliminated work-from-home policies instituted during the coronavirus pandemic; JPMorgan’s C.E.O., Jamie Dimon, has long criticized hybrid working arrangements.
The markets are taking Trump seriously
Coming into 2025, the big questions hanging over President-elect Donald Trump’s second term included tax cuts, the Fed’s independence and potential new trade war.
But few could have foreseen the president-elect refusing to rule out military force or economic coercion against allies as he did on Tuesday at a wide-ranging news conference at Mar-a-Lago. It underscores that for markets, a Trump presidency brings plenty of potential black swan events.
A recap: Trump revealed an expansive vision of “America First,” doubling down on calls for the United States to gain control of Greenland and the Panama Canal. And he spoke of renaming the Gulf of Mexico to the “Gulf of America,” though it was unclear how serious he was about that.
The Trump effect can be seen in the markets on Wednesday. The S&P 500 looks set to open lower, and sectors like green energy and companies including Tesla slumped after Trump railed on Tuesday about wind turbines and grumbled about electric vehicles.
And the yield on the 10-year Treasury note hit a roughly nine-month high on Tuesday, a worrying sign for house hunters and credit-card holders.
Some market watchers still believe that markets could check the Trump agenda. Bond vigilantes could act as a brake on Trump’s policies if they reignite inflation.
And more broadly, the Trump team cares “about the verdict of financial markets,” Holger Schmieding, an economist at Berenberg, wrote in a research note on Wednesday. “If their actions were to impair the potential for growth and corporate earnings badly enough to trigger a sell-off, they might change tack.”
There are signs that might prove true. Trump acknowledged on Tuesday that it would be “hard” to bring down consumer prices, a major shift from what he told supporters on the campaign trail. His big inflation-fighting idea, expanding oil drilling, hasn’t yet affected the markets, with crude oil prices on a steady rise in recent weeks. (President Biden’s ban on new oil exploration in vast stretches of U.S. waters has contributed to that price surge, and may be hard for Trump to undo.)
That said, the VIX volatility index, known as Wall Street’s fear gauge, has been stable for weeks, a sign that equity investors are still bullish.
Trump’s record-breaking inauguration
Donald Trump’s transition team has already amassed a mega budget to throw an inauguration bash for the ages.
And the president-elect can thank the giants of the tech industry and Wall Street — some of the same figures who’ve met with him recently at Mar-a-Lago — for the record haul of at least $150 million. Few federal rules govern how Trump and his associates can spend the money.
Donors who have gone public include: Amazon, Bank of America, Goldman Sachs, Meta and Uber. Executives such as Tim Cook of Apple, Dara Khosrowshahi of Uber and Sam Altman of OpenAI have also chipped in.
Contributing to inauguration funds has become a corporate America tradition. “You’re giving money directly to the incoming president with no risk of backing the wrong horse,” Craig Holman, a lobbyist with Public Citizen, a consumer rights watchdog, told DealBook’s Sarah Kessler. Donors who give $1 million to the fund receive tickets to the inauguration plus other events such as a reception with cabinet picks and a pre-inauguration dinner with Trump.
There are only a few restrictions. Foreign nationals are not allowed to donate, and donations over $200 must be disclosed. And anti-bribery laws apply. “Beyond that, it’s pretty much open in terms of who may contribute and how they may spend it,” said Kenneth Gross, a lawyer specializing in campaign finance at Akin Gump.
The inauguration fund pays for the parties, dinners and the parade, while taxpayers foot the bill for security and the swearing-in ceremony.
What will happen to unspent funds? Two people involved in the fund-raising for Trump’s inauguration told The Times that donors expected the remaining money to go to Trump’s presidential library.
The last time, Trump’s team raised $107 million (the previous record). It was later revealed that a nearly $26 million payment went to an event planning firm created by an adviser to the first lady, Melania Trump.
Lawmakers have sought to change things. One bill introduced in 2023 would limit contributions to $50,000. But such efforts have gained little traction.
The big new corporate bet: Bitcoin
Corporate treasury departments are usually bastions of caution, preferring to invest their companies’ money in stable assets like Treasury bonds. But a growing number are choosing to go a different route by investing in crypto.
By one estimate, more than 70 publicly traded companies have invested in Bitcoin, despite some having nothing to do with crypto. At least a few have been inspired by MicroStrategy, a software company that began amassing Bitcoin in 2020 — and now sits on a stockpile worth over $40 billion. MicroStrategy’s stock price is up roughly tenfold over the past 18 months.
But it means that those companies are putting their money in a highly volatile asset that could imperil their finances if things go wrong, The Times’s David Yaffe-Bellany and Joe Rennison write:
The investments are a sharp pivot away from the cautious approach of the traditional corporate treasury department, whose focus is typically safeguarding cash rather than risking it for a higher return. Typical reserve assets include steady, predictable securities like U.S. government bonds and money market funds.
“I cannot understand how a risk-averse board could justify an investment in digital assets, given we know they swing quite significantly,” said Naresh Agarwal, an associate director at the Association of Corporate Treasurers, a trade organization. “It is quite an opaque market.”
Some investors aren’t on board with this new tactic. When Banzai, a publicly traded marketing firm, decided to invest in Bitcoin, some shareholders expressed alarm. Joe Davy, its C.E.O., told The Times: “I got a couple of phone calls from people who were like: ‘What the hell is going on over there? What are you thinking?’”
THE SPEED READ
Deals
Politics and policy
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The Justice Department added six major landlords, including Blackstone’s LivCor, to a price-fixing lawsuit against the real estate software company RealPage. (WSJ)
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Theodore Farnsworth, the former C.E.O. of MoviePass’s parent company, pleaded guilty to fraud over misleading investors about the business’ “unlimited” subscription plan. (NYT)
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Business
Commentary: The right-wing attack on science reaches a nadir, but it could get worse
The tally from Trumpian attacks on science now includes billions of dollars in damage to farmers and ranchers and assaults on scientists’ freedom of speech
One of the rules I came to live by during my years of covering global trouble spots is: “Never assume that things can’t get worse.”
But it will be hard to find a worse display of shameful servility to the Trump administration by a scientific organization than the American Diabetes Association provided on Friday.
During the organization’s annual conference in New Orleans, five of its leading members — four former presidents and the current editor of Diabetes Care, its official journal — were distributing paper copies of an editorial from the journal decrying the administration’s aggressive attack on scientific research and funding.
The seeming endorsement by the ADA of the current administration’s approach to science and of its attacks on freedom of speech is unconscionable.
— Open letter to American Diabetes Association
Suddenly they were confronted by security guards and New Orleans police and manhandled out of the hall. (A video is here, courtesy of MedPageToday.)
Their papers were confiscated. They were ordered to surrender their passes and were informed that if they tried to reenter the hall they would be arrested for trespassing.
“We printed 1,000 copies of the editorial, at my personal expense, and we hoped that 200 people who hadn’t seen it would read it,” Steven Kahn, director of the Diabetes Research Center at the University of Washington, editor of the journal and the lead author of the editorial, told me.
Instead, the editorial has become a must-read, with tens of thousands of page views and widespread condemnation of the conference organizers’ actions.
An open letter to the ADA started by David Nathan of Massachusetts General Hospital, titled “Shame on You” and stating that “the seeming endorsement by the ADA of the current administration’s approach to science and of its attacks on freedom of speech is unconscionable” has more than 6,400 signatories on change.org as of this writing.
The Diabetes Association implied in an official statement that the scientists had breached IRS regulations that include “maintaining a strictly nonpartisan environment at all organizational events.” On Wednesday, the organization said it would commission “a thorough independent review of the events that occurred.”
The organization’s action underscores one reason why the Trump administration’s wholesale attack on scientific research has reached a level that, as I’ve written, will have generational ramifications: It’s because some of our most august scientific organizations have failed to stand up for principle.
“It’s part of a larger systems failure among the academic medical centers, research universities, scientific and professional societies and the National Academies,” says Peter Hotez of Baylor College of Medicine, a vaccine expert and veteran adversary of pseudoscience.
The attention given to individual incidents such as the ADA conflict obscure what Hotez calls “the greater reality … a much darker MAHA strategy to tear down American biomedicine.” The goal, he says, is to supplant independent academic research with “an entire system of pseudoscience and grift.” MAHA is the administration’s acronym for “Make America Healthy Again.”
The latest iteration of this effort came late last month with a rule proposal from the Office of Management and Budget, which is headed by the arch-conservative Russell Vought, that would in effect make all scientific grant applications subject to the oversight of politically-appointed commissars.
Among other provisions, grants would be rejected if they’re judged to “fund, promote, encourage, subsidize, or facilitate … diversity, equity, and inclusion” or “gender ideology” such as “theories or ideologies that deny the biological reality of sex or the sex binary in humans.”
The OMB proposal finally stirred major scientific bodies to speak up. “This latest move is a brazen power grab,” the American Association for the Advancement of Science said through its chief executive, Sudip Parikh. “If this rule becomes final, Americans’ hopes for future cures, national security and economic strength will rely on the scientific sensibilities of the nation’s chief bureaucrat.”
As it happens, the OMB proposal dropped just as the economic consequences of the extremist war on science were becoming clearer than ever.
Among the thousands of grants and programs that perished when the administration dismantled the U.S. Agency for International Development, for example, was a program monitoring the advance of the New World screwworm north from Central America.
The screwworm, which has the capacity to devastate cattle and sheep herds, has now appeared in Texas, where its costs could be enormous. Just last year, the Dept. of Agriculture calculated that the eradication of the pest in the U.S. in the 1990s yielded annual economic benefits to producers of an inflation-adjusted $1.7 billion a year to the cattle industry and $6 billion a year to the broader economy. A new outbreak, the USDA estimated, could cost the Texas economy $1.8 billion.
Then there’s measles. The Centers for Disease Control and Prevention reports 2,030 U.S. cases this year as of June 4, almost as many as were seen in all of 2025 (when there were 2,288, including three deaths), the worst outbreak since 1991. This is the harvest of the anti-vaccine ideology being spread by Health and Human Services Secretary Robert F. Kennedy Jr.
The outbreak’s consequences can be measured in dollars and cents: Responding to an outbreak of as few as 600 cases could cost local agencies $10 million, according to healthcare researchers at Johns Hopkins University.
The Trump administration has proposed slashing the budget of the grant making National Science Foundation by 61% and of the National Institutes of Health by 40%. The budget of the CDC, which once reigned as a global gold-standard for public health oversight but has suffered from the disdain of RFK Jr. and his minions, would be cut by 44%.
Taken together, these cuts “would shrink the economy by $1 trillion compared with maintaining the 2025 level of R&D,” reckons the Information Technology and Innovation Foundation, a science and tech think tank.
What frightens scientists more than the sheer numbers are that the cuts are arbitrary and manifestly pernicious. A study published last year in JAMA Internal Medicine identified 383 NIH-funded clinical trials that the administration terminated, leaving more than 74,000 participants high and dry.
“Scientific investment is not a cost to be minimized,” Henry Miller, a former biotech official at the Food and Drug Administration, observed recently; “it is an engine of national wealth. … The internet, mRNA vaccines, human gene therapy, GPS, the transistor — all emerged from the sustained public investment being dismantled today.”
The Diabetes Care editorial that Kahn and his colleagues attempted to distribute at the New Orleans conference is a cri de coeur targeted at the right-wing anti-science campaign. It’s titled, “Misguided Brushes of a Pen Continue to Dismantle and Destroy Biomedical Research in the United States.”
The result of the funding reductions, the authors wrote, will be “researchers being forced out of science and fewer people considering biomedical investigation as a career. Are we ready to watch the crippling of scientific advances in diabetes and all other diseases? It is no longer enough to stand idly by or work behind the scenes with lawmakers. Moreover, it is no longer appropriate to fret about political backlash.”
The scientists intended their distribution of the article implicitly as a counterweight to a keynote talk by NIH Director Jay Bhattacharya, who was going to speak without taking questions but who bailed out at the last minute. I sought a comment from Bhattacharya, who portrays himself as a champion of open scientific debate, about the eviction of the five scientists from the conference, but got no reply.
The uproar has roiled the ADA. Its president-elect, endocrinologist Jennifer Green of Duke University, and its scientific sessions planning committee chair, diabetes expert Mark Atkinson of the University of Florida, have both resigned their positions, though their role in the evictions, if any, is unknown.
The so-called New Orleans Five demanded an apology from the association, Kahn told me. They got one Wednesday from ADA Chief Executive Charles Henderson, via a video in which he extended his apology to “the broader diabetes community,” many members of which of whom he acknowledged were “disturbed, disappointed and concerned about what occurred.”
The truth is that the ADA’s action only validated the editorial’s exhortation to scientists to speak out forcefully: “We can no longer afford complacency and fear. We must all act now!” Will other scientific bodies draw a lesson from what happened in New Orleans? Let’s hope so.
Business
The FBI serves a search warrant at the Garden Grove chemical plant
Federal Bureau of Investigation officers served a search warrant Wednesday at the Garden Grove chemical plant, where a compromised tank containing toxic chemicals threatened to leak or explode, resulting in the evacuation of nearby residents in May.
“We are cooperating with authorities at our Garden Grove facility and will continue to do so,” a spokesperson of GKN Aerospace, which operates the facility, said in an email statement.
Laura Eimiller, an FBI spokesperson, said FBI agents are serving a search warrant as part of an ongoing investigation into the Garden Grove aerospace business.
GKN Aerospace is a division of Melrose Industries, a U.K.-based aerospace company that manufactures aircraft parts.
In May, at the manufacturing facility, which stores thousands of gallons of toxic chemicals in pressurized tanks used to produce materials such as plexiglass for fighter jet and commercial aircraft windows, one tank threatened to leak or explode.
Over 50,000 residents were temporarily evacuated as officials investigated the potential for an explosion for days. They found that a crack in the compromised tank released the pressure buildup inside the storage unit, which ruled out the possibility of an explosion, and allowed residents to return to their homes.
The compromised tank threatened to blow up, affecting adjacent tanks also containing the toxic chemical methyl methacrylate which could have caused a large-scale public safety emergency. Still, plans to remove the remaining MMA chemical tanks from the facility have been postponed, and no new date has been announced yet.
Residents who were impacted by the evacuation have already filed multiple class action lawsuits against the company, alleging negligence at the manufacturing facility and seeking compensation for loss of use of homes and diminished property value. Now, federal officials will investigate possible violations and factors that could have contributed to the incident.
According to the FBI warrant, the officers will seize items in violation of measures to prevent the accidental release of hazardous substances into the air.
The warrant allows FBI officers the discretion to search digital devices or seize and transport them as part of the investigation.
Business
Rivian begins deliveries of cheaper electric vehicles
Electric-vehicle maker Rivian began delivery of a cheaper SUV on Tuesday as it aims to take customers from Tesla and others.
The long-anticipated R2, which will eventually be available for less than $45,000, could help boost the market share of the Irvine company better known for vehicles priced around $77,000.
The first R2s to roll off the company’s production line in Normal, Ill., are the performance version, starting at $57,990. Rivian said the R2 Premium will arrive in late 2026 for around $54,000, followed by an R2 Standard version in 2027 priced at $44,990.
“Rivian is really trying to prove its worth,” said Ivan Drury, director of insights at Edmunds. “They’ve gone past that initial stage and are hoping to move on to mass market products.”
The R2 Performance is still an expensive vehicle for many Americans, but it’s a step down from Rivian’s nearly $77,000 R1S. It’s typical for an automaker to launch the most expensive version of a new vehicle first, experts said.
Whether the R2 will be the success Rivian is hoping for won’t become clear until late 2027, once the standard versions are widely available. Chief Executive RJ Scaringe said the company is aiming to compete with not just other EV makers, but also traditional auto companies such as Jeep and Subaru.
“More mainstream people are going to be in on the R2, especially for the lower-priced models,” auto analyst Brian Moody said. “You’re always going to have early adopters, but there’s a lot more customers to go around in the $45,000 to $55,000 range.”
According to Cox Automotive, the average transaction price for a new EV in the U.S. is $55,000, compared with $49,000 for a gas-powered vehicle. Used EV sales have been surging lately because of their value, with an average transaction price of around $36,000.
Though there’s significant hype surrounding the launch of R2, investors have been unimpressed. Rivian shares fell 7% on Tuesday.
There has been a broad cooling of the EV market. Major automakers including Honda and Ford have cut back their EV options as excitement for the vehicles has fallen under the Trump administration. A $7,500 EV tax credit for new vehicles expired in September.
Drury added that an announcement of a new product would generally generate more buzz than the first deliveries of a vehicle that’s already been in the public eye.
“This is simply them delivering on a promise, and the market itself is not what it was when they had first conjured up the vehicle,” Drury said.
Rivian lost $3.6 billion last year and hasn’t been profitable since its founding in 2009. Scaringe said the company will reach profitability on a per-unit production basis with the R2 this year, but estimated that the company won’t turn an overall profit until closer to 2030.
Karl Brauer, an auto industry expert at ISeeCars.com, said the premium and standard versions of the R2 probably will sell in much higher volumes than the performance version.
“It’s in theory an exciting moment, because they’re launching this new version, but it’s the expensive one,” Brauer said. “There’s no indication in my mind that there will be huge, high-volume sales.”
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