Finance
A new blueprint for financing community development – Part III
Hegseth, a Fox News host who served in the Army National Guard, was named by President-elect Donald Trump on November 12 as his pick for defense secretary. Since then, Hegseth has been the subject of a number of allegations of sexual misconduct, alcohol abuse and financial mismanagement. The most recent spate of news stories have detailed allegations, which Hegseth has denied, related to excessive alcohol consumption and appear to be the main topic of concern on Capitol Hill.
“It’s just been very troubling to see how unconcerned many members of Congress are with men who are accused of sexual assault,” said Rep. Veronica Escobar of Texas, a member of the House Armed Services Committee. While the House does not vote to confirm Cabinet nominees, Hegseth met with Republican House members on Wednesday to shore up support.
“The issue that apparently, I heard, came up in his meetings was his alleged alcohol abuse,” she said. “But I guess his abuse of women doesn’t seem to bother as many folks.”
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Credible allegations of impropriety have often been cause for withdrawal or disqualification. Hegseth is one of a number of Trump’s Cabinet-level nominees who face accusations of sexual misconduct.
In 2020, Hegseth paid a confidential settlement to a woman who filed a police report accusing him of raping her in 2017 at a Republican women’s conference in Monterey, California. No charges were filed against Hegseth in connection with the encounter, which he and his lawyer maintain was consensual. The New Yorker and other outlets have reported on additional allegations that Hegseth mismanaged funds and abused alcohol while leading two veteran-focused nonprofits, and that his colleagues at Fox News witnessed him drinking to excess while he was a weekend co-host at “Fox and Friends.” Hegseth has strenuously denied those claims, including in an op-ed published in the Wall Street Journal, and told Megyn Kelly in an interview on her SiriusXM show that he wouldn’t drink alcohol as defense secretary.
Representatives for Fox News and the Trump transition did not immediately return requests for comment. Several of Hegseth’s current and former Fox News colleagues, including current “Fox & Friends Weekends” co-host Will Cain, have spoken up in his defense.
“The press is peddling anonymous story after anonymous story, all meant to smear me and tear me down. It’s a textbook manufactured media takedown,” Hegseth wrote in the Journal. “They provide no evidence, no names, and they ignore the legions of people who speak on my behalf. They need to create a bogeyman, because they believe I threaten their institutional insanity. That is the only thing they are right about.”
Democratic women serving on the House and Senate Armed Services Committees argued that Hegseth getting confirmed would not only undercut years-long bipartisan efforts in Congress to address sexual assault and abuse in the military but also the armed services’ efforts to recruit more women.
“This is very concerning,” said Escobar, a Democrat. “We have been trying to address recruitment for a long time, and women are a key component of that. This is the last thing we needed, and it is my hope that those members of the Senate who are committed to these reforms and who know how important women are in the military will have very candid conversations with him, and he will drop out.”
Nearly 1 in 4 women in the military report having experienced sexual assault and more than half report harassment, according to a 2016 analysis of articles published in the peer-reviewed journal Trauma, Violence and Abuse. The vast majority of incidents go unreported, according to the RAND Corporation, which provides research to the U.S. Armed Forces. In 2018 alone, about 6,000 sexual assaults were reported to the Department of Defense, but surveys suggested more than 20,000 service members were sexually assaulted. And amid a broader military recruitment crisis, a 2020 government study found that women were leaving the military at higher rates than men and citing sexual assault as a major factor.
Michelle Simpson Tuegel, a Texas-based lawyer who does not practice in the military justice system but has represented survivors in several high-profile sex abuse cases, said Hegseth’s nomination marks “a scary moment” for women service members.
“I get calls every year from women who have faced sexual assault and sexual harassment in the military, I’ve represented people on the bases when I used to do criminal defense,” Tuegel said. “There’s a lot of violence on our military bases.”
Reports of sexual assault in the military have risen by an estimated 25 percent since 2018, according to the military’s own data, which include both anonymous surveys and formal reports.
Military justice reform advocates have gained ground in recent years, particularly in regards to how military sexual assault and harassment investigations are handled. After the end of World War II, one Supreme Court ruling — known as the Feres doctrine — barred service members from suing the government over any injuries incurred while on active duty. Though typically applied to cases of medical malpractice, this ruling had expanded to include sexual assault allegations. However, the high-profile murder in 2020 of Vanessa Guillén, a soldier who was sexually harassed by a supervisor and violently murdered while stationed at Fort Hood, Texas, acted as a catalyst for reform. Guillén’s death led to major changes in the National Defense Authorization Act, guaranteeing that certain crimes like sexual assault and domestic violence would be prosecuted outside the chain of command.
Democratic Sen. Tammy Duckworth of Illinois, a veteran, called it “insane” that Trump would nominate someone like Hegseth after the “decades” of efforts within the Armed Services.
“There are simply too many reasons proving that Pete Hegseth is not the right person to lead our military men and women, and he will not have my vote,” she said in a statement to The 19th. “Republicans confirming him to this position wouldn’t just be an insult to our men and women in uniform—it would be dangerous for our national security and military readiness.”
Rep. Mikie Sherrill of New Jersey was a student at the Naval Academy 30 years ago as part of the first class of women eligible for combat ships. She served for nearly a decade, including a stint in London when she worked for a Navy fleet commander overseeing the deployment of troops to Iraq, at a time when she said the culture was not great for women.
When young women interested in the service academies come to her office, Sherrill said, “they’re not interested in going into a force as second-class citizens, and they’re not interested in being given special treatment.”
“What they want is the challenge that all people that go into our military service want. What they want to do is to serve the public, to protect and defend the Constitution of the United States and to make sure that people here can sleep at night,” said Sherrill, who is also running for governor of New Jersey. “And so, why you would ever put someone in charge that didn’t respect that, that didn’t respect the service of about 20 percent of our armed forces, is shocking to me.”
The implications stretch beyond the ranks of the Armed Forces, said Democratic Rep. Chrissy Houlahan of Pennsylvania, who served in the Air Force and Air Force Reserve. Changes that enabled women like her, Sherrill and others to serve in the military put them on the path to public service in Congress, she said.
“They served because we made some real reforms that mattered in how women are able to serve and what kind of roles they’re able to serve in,” Houlahan said. “And I think it’s not a coincidence that you then see those people, decades later, showing up in places like Congress, because they’ve had equal opportunity.”
The U.S. Senate vets and confirms the president’s nominees to Cabinet posts and other high-level positions. In some ways, Hegseth’s nomination and the scandal surrounding it are not new. The first time a new president’s initial Cabinet nominee was rejected was in 1989 when the Senate failed to confirm John Tower, former President George H.W. Bush’s pick for defense secretary, after he was accused of being an alcoholic womanizer.
Then Sen. Sam Nunn, a Democrat and Senate Armed Services Committee Chairman at the time, led the charge against Tower’s nomination on the grounds that his character was unfit for the position.
“The committee is also concerned about the personal example the secretary of defense must set for efforts of the Department of Defense to end discrimination toward, and any sexual harassment of, women. … Mr. President, leadership must be established from the top down,” Nunn said during the 1989 Senate debate.
Secretary of Defense Lloyd J. Austin III, who was appointed by President Joe Biden, has made it a priority of his tenure to combat sexual assault in the military, establishing a commission early on to make recommendations to the military. Meanwhile, Hegseth has signaled a different set of values and priorities when it comes to women and people of color. He wrote a book arguing that military standards have been lowered for women, that “America’s white sons and daughters” are walking away from the military because of ideology that is too “effeminate” and that diversity, inclusion and equity efforts are bad for national security.
“I’m straight up just saying we shouldn’t have women in combat roles,” Hegseth said in November during a podcast interview. “It hasn’t made us more effective. It hasn’t made us more lethal. It has made fighting more complicated.”
On Wednesday, Hegseth mounted another lobbying blitz on Capitol Hill, meeting with several key Republican senators. GOP Sen. Joni Ernst of Iowa, an Army veteran and a sexual assault survivor herself who has been outspoken against sexual assault in the military, posted on X that she had a “frank and thorough” conversation with Hegseth.
His mother, Penelope Hegseth, is also doing a media tour on behalf of her son after The New York Times reported on an email she sent him in 2018, in the midst of his contentious divorce from his second wife, excoriating Hegseth as an “abuser of women.” It is against military law to commit adultery, which could result in dishonorable discharge. Penelope Hegseth, who said she since apologized for and disavowed the contents of the email, took to Fox News with her hopes that lawmakers, “especially our female senators,” to “not listen to the media and that you will listen to Pete.”
Houlahan said she’s using the influence she has as a woman veteran in Congress to register her concerns with her colleagues in the Senate about Hegseth’s nomination.
“To the degree I can, I’m trying to have conversations, and directly have conversations with my Senate companions, to do my best to explain that I am really worried about this,” she said. “And I’m hoping that me being really worried is an indicator, a canary in the coal mine, of other people who are worried about it, who don’t have the voice that I have.”
Finance
PEIA Finance Board approves increases, sparking financial concerns among public employees
CHARLESTON, W.Va. (WCHS) — The PEIA Finance Board approved on Thursday a three percent deductible increase, along with a $200 increase in the spousal surcharge.
Over the last three years public employees have been subject to nearly a 50% increase in PEIA deductibles, something that people like Josh Keck, who is a professor at Mountwest Community and Technical College said has put public employees between a rock and a hard place financially.
“So you add that on top of all the other regular cost of living increases. I mean rent prices are insane. Housing prices are insane, new car prices are insane,” Keck said. “So you add all that on top of it. I mean every year for the last three years has been worse and worse and worse to where my budget doesn’t work anymore.”
The main thing raising concerns from many families on PEIA is the approved $200 increase to the spousal surcharge. For Keck that would make his spousal surcharge per month over $500.
“I took a big pay cut to go from private industry to teaching and that was predominantly because of PEIA ,and the family plan being as cheap as it was,” Keck said. “But with this spousal surcharge, that’s pretty much killed my budget. I have no ability now to save for retirement outside of the minimum that they take out of my check.”
Education West Virginia Co-President Dale Lee has contended throughout the PEIA public hearings over the last month that if premiums and deductibles are based on a tier system that is based on someone’s ability to pay then it should also be applied to the spousal surcharge.
“That should be based on the ability to pay to,” Lee said. “It just seems right that someone making $200,000 a year shouldn’t pay the same price as somebody making $20,000.”
The approved increases are set to go into effect July 1, 2026, but Lee said if state lawmakers act in the upcoming legislative session the increases can be avoided.
“If the legislature acts on some things like for the spouse surcharge, for example, if they change the statute where that is based on your ability to pay rather than the actual cost of the plan, that can change,” Lee said.
Finance
Is the dominance of the US dollar unravelling under Trump?
The US has long sat at the centre of the global financial system, with the US dollar serving as the backbone of the world economy. Private investors rely on the dollar as a store of value in times of uncertainty.
Governments and central banks hold dollars to manage the value of their own currencies and as a form of insurance against economic shocks. Key commodities such as oil are also priced in dollars.
This dominant position, which has given the US enormous privileges including the capacity to borrow money cheaply and the ability to use the global financial system as a tool of statecraft, is often explained through the size and stability of US markets and the strength of its institutions. But beneath these economic fundamentals lies something more intangible: trust.
Countries and private financial institutions hold dollars, trade in dollars and borrow in dollars because they trust the US to maintain an open, rules-based international order. They also trust the US to honour contracts, protect property rights and manage the world’s financial plumbing responsibly by acting as an international lender of last resort during periods of crisis.
The dollar system has long had its critics. In the aftermath of the global financial crisis, which occurred between 2007 and 2009, emerging economies faced severe spillovers from US monetary policy and growing exposure to dollar-denominated debt. They also witnessed the increasing use of financial sanctions as a tool of US foreign policy.
China, Russia, India and other countries outside the west began constructing alternative financial infrastructures – new payment systems, currency swap lines and efforts to internationalise their own currencies. What began as a gradual search for some form of protection from US financial power quietly created cracks at the margins of the dollar-based system.
However, nothing has been as disorienting to the global role of the dollar as the second Trump administration’s overt attacks on the liberal international economic order. The imposition of sweeping trade tariffs, as well as efforts to undermine international and domestic institutions, represent a fundamental break with the promise of responsible American financial leadership.
Previous predictions of the dollar’s decline have proved premature. But as we argue in a recently published paper, the erosion of trust in the US as the steward of the liberal international order should be taken seriously. What we are seeing is not the immediate collapse of US financial power, but the beginning of a slow transition towards a fragmented, multipolar – and less predictable – global monetary system.
Finance
No budget deal in sight as Johnson’s finance team pokes holes in alders’ plan
It’s clear Chicago Mayor Brandon Johnson and the Chicago City Council are no closer to reaching a budget deal, as top financial officials in the mayor’s administration have largely rejected the alternative budget plan presented by council members.
The 2026 budget plan needs to be approved by the mayor and at least 26 of the 50 alders by the end of the year. In October, Johnson presented his plan, which included a $21 per employee corporate head tax on the city’s largest companies each month, plus a host of other taxes. A month later, the mayor’s revenue ideas were soundly rejected by the council’s Finance Committee.
Alders began crafting their own plan, and 26 of them signed a letter Tuesday presenting an alternative proposal. The alternate plan took out the corporate head tax, replacing it instead with items like an increased garbage fee, with an exemption for seniors, and an increased liquor tax at liquor stores.
The mayor’s financial team — Chief Financial Officer Jill Jaworski, Budget Director Annette Guzman and City Comptroller Michael Belsky — responded to the alders Thursday, thanking them for their plan but rebuking several of their proposals, saying, for example, that an improved debt collection plan, is “not supported by legal, financial, or operational realities.” The mayor’s administration said increasing the garbage collection fee from $9.50 to $18 per month would represent a 90 percent increase in a year, which would be a financial hardship for families.
“At a time when many communities are already experiencing substantial property tax increases through the recent property assessments conducted by the Cook County Assessor and the appeals approved by the Board of Review, imposing another major cost escalation would create an immediate and disproportionate burden on households least able to absorb it,” Jaworski, Guzman and Belsky wrote in a joint statement to the 26 alders.
The mayor’s team also made it clear the corporate head tax — which it calls a “Community Safety Surcharge” — will stay in the budget proposal, despite objections from more than half the council. Opponents of the head tax call it a “job killer.” The mayor’s team challenged that notion, saying the assertion that it would “disincentivize economic growth is not substantiated by data.”
“The assumption that corporate taxation directly affects employment growth lacks empirical support. By investing in proven community safety interventions, we are making Chicago better for businesses. A progressive revenue like the Community Safety Surcharge, one that asks those who have benefited the most from the city’s growth and prosperity to contribute their fair share, is not a threat to prosperity, but a prerequisite,” Jaworski, Guzman and Belsky wrote in a joint statement to the 26 alders.
Ald. Nicole Lee and Ald. Scott Waguespack responded to the mayor’s administration’s rebuke of their alternate proposal, disagreeing with their assessment.
“The mayor’s office has offered no new ideas – only criticisms of our work. This is not anyone’s idea of actual collaboration,” Lee said.
“It is time for Mayor Johnson to accept the reality that his budget is not going to pass as is,” Waguespack said. “We will take the necessary steps required to move this process forward on our own.”
The city paid the accounting firm Ernst and Young $3 million to outline efficiencies that could help Chicago close its billion-dollar gap in its $16 billion 2026 budget. Among the options in the report: consolidating city purchasing and fleet management, streamlining city departments and better managing health care costs.
Alders have urged Johnson to adopt more recommendations from the report, but his finance team responded in their memo Thursday, saying, “It is important to note that the City’s Financial and Strategic Reform Options report presents a set of options for consideration—not mandates.”
The mayor’s administration noted that it has made changes to its own initial proposal, including the full restoration of the Chicago Public Library’s circulation budget, additional money for the advanced pension payment, more funding for community programs and upping a program that helps low-income people with disabilities make their homes more accessible.
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