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Supreme Court sides with Ted Cruz, striking down cap on use of campaign funds to repay personal campaign loans

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Supreme Court sides with Ted Cruz, striking down cap on use of campaign funds to repay personal campaign loans

The courtroom mentioned {that a} federal cap on candidates utilizing political contributions after an election to recoup private loans made to their marketing campaign was unconstitutional.

Chief Justice John Roberts wrote the 6-3 resolution. Justice Elena Kagan wrote the dissent for her liberal colleagues, Justice Stephen Breyer and Justice Sonia Sotomayor.

“The query is whether or not this restriction violates the First Modification rights of candidates and their campaigns to have interaction in political speech,” Roberts wrote. He mentioned there’s “little doubt” that the regulation does burden First Modification electoral speech. “Any such regulation have to be not less than justified by a permissible curiosity,” he added, and the federal government had not been capable of determine a single case of so-called “quid professional quo” corruption.

Roberts concluded that the “provision burdens core political speech with out correct justification.”

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In her dissenting opinion, Kagan criticized the bulk for ruling towards a regulation that she mentioned was meant to fight “a particular hazard of corruption” geared toward “political contributions that may line a candidate’s personal pockets.”

“In placing down the regulation at the moment,” she wrote, “the Courtroom greenlights all of the sordid bargains Congress thought proper to cease. . . . In permitting these funds to go ahead unrestrained, at the moment’s resolution can solely deliver this nation’s political system into additional disrepute.”

Certainly, she defined, “Repaying a candidate’s mortgage after he has received election can not serve the same old functions of a contribution: The cash comes too late to assist in any of his marketing campaign actions. All the cash does is enrich the candidate personally at a time when he can return the favor — by a vote, a contract, an appointment. It takes no political genius to see the heightened threat of corruption — the hazard of ‘I will make you richer and you may make me richer’ preparations between donors and officeholders.”

In an announcement after the ruling, lawyer Charles Cooper, who represented Cruz within the case, praised the choice as a “victory for the First Modification’s assure of freedom of speech within the political course of.”

Within the case, marketing campaign finance regulators on the Federal Election Fee argued that the cap — part of the Bipartisan Marketing campaign Reform Act of 2002 — is critical to guard towards corruption, however a three-judge appellate courtroom dominated in favor of Cruz final yr, holding that the loan-repayment restriction violates his First Modification proper to free speech.

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At oral arguments on the Supreme Courtroom, the conservative justices appeared skeptical of the federal government’s claims that the regulation serves a goal of combating corruption.

Justice Amy Coney Barrett mentioned that Cruz had emphasised that the after-election compensation scheme would merely replenish his coffers from cash he had loaned. “This does not enrich him personally, as a result of he is no higher off than he was earlier than,” she mentioned, including, “It is paying a mortgage, not lining his pockets.”

And Justice Brett Kavanaugh mentioned {that a} candidate might really feel reluctant to mortgage cash earlier than the marketing campaign out of concern he wouldn’t be capable to recoup it. “That appears to be,” he mentioned, “a chill in your potential to mortgage your marketing campaign cash.”

Kavanaugh echoed a decrease courtroom opinion that went in favor of Cruz.

“A candidate’s mortgage to his marketing campaign is an expenditure that could be used for expressive acts,” the courtroom mentioned in an opinion written by DC Circuit Courtroom of Appeals Choose Neomi Rao. She and DC District Courtroom Judges Amit Mehta and Timothy Kelly dominated unanimously.

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“Such expressive acts are burdened when a candidate is inhibited from making a private mortgage, or incurring one, out of concern that she can be left holding the bag on any unpaid marketing campaign debt,” the ruling added.

Biden administration and marketing campaign finance watchdogs supported limits

Federal regulation permits candidate to make loans to their marketing campaign committees with out restrict. Cruz was difficult a provision of the Bipartisan Marketing campaign Reform Act of 2002 that, nevertheless, imposed a $250,000 restrict on a marketing campaign committee’s potential to repay these loans with cash contributed by donors after the election.

A day earlier than he was reelected in 2018, Cruz loaned his marketing campaign committee $260,000, $10,000 over the restrict — laying the muse for his authorized problem to the cap. Whereas He might have been repaid in full by marketing campaign funds if the compensation occurred 20 days after the election. However Cruz let the 20-day deadline lapse in order that he might set up grounds to deliver the authorized problem.

Cruz’s attorneys advised the Supreme Courtroom in briefs that “no First Modification proper is extra very important in our constitutional democracy than the liberty of a candidate to talk with out legislative restrict on behalf of his personal candidacy.”

The regulation, “by considerably growing the chance that any candidate mortgage won’t ever be totally repaid — forces a candidate to assume twice earlier than making these loans within the first place,” Cruz’s transient mentioned.

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The Biden administration supported the bounds, saying the Cruz mortgage was made with the “sole and unique motivation” of triggering the lawsuit.

Deputy Solicitor Basic Malcolm L. Stewart advised the justices that the regulation “imposes insubstantial burdens on the financing of electoral campaigns and it targets a follow that has vital corruptive potential.”

“A post-election contributor usually is aware of which candidate has received the election, and post-election contributions don’t additional the same old functions of donating to electoral campaigns,” he mentioned.

Marketing campaign finance watchdogs supported the cap, arguing it’s obligatory to dam undue affect by particular pursuits, significantly as a result of the fundraising would happen as soon as the candidate has turn out to be a sitting member of Congress.

Noting that the supply in query was a “comparatively obscure one,” Dan Weiner, the director of the Elections and Authorities Program on the Brennan Middle for Justice at NYU Legislation, advised CNN after the ruling that “the sensible implications for marketing campaign finance legal guidelines are fairly minimal.”

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“I feel that the choice says quite a bit in regards to the courtroom’s broader strategy to the First Modification and the path it is headed,” mentioned Weiner, whose group filed a friend-of-the-court transient in supporting the bounds within the case.

“It is one other occasion that they are going to chip away on the restraints that our system has historically imposed on unfettered personal cash in marketing campaign,” Weiner added.

Chipping away at a 20-year-old marketing campaign finance regulation

Monday’s ruling marks the most recent erosion of the 2002 regulation — recognized by the names of its sponsors, the late Arizona Republican Sen. John McCain and former Wisconsin Sen. Russ Feingold, a Democrat. The regulation sought to restrict the move of huge, unregulated and infrequently secret cash in US elections.

Lately, nevertheless, the excessive courtroom has stripped away main provisions of that regulation, most notably in its blockbuster 2010 Residents United resolution, which allowed companies and unions to unleash limitless quantities of cash in races so long as they spent independently of the politicians they assist.

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In 2008, the justices additionally struck down the so-called millionaire’s modification that aimed to stage the enjoying discipline when rich candidates financed their very own campaigns. That provision had relaxed contribution limits for opponents of self-funded candidates in an try to shut the funding hole.

In one other ruling chipping away on the McCain-Feingold regulation, this one in 2014, the courtroom’s conservative majority struck down caps on how a lot a person can donate in complete throughout a single election cycle — establishing one other route for large cash in elections.

In opposition to this backdrop, advocates for limits on cash in politics mentioned the Monday’s ruling was comparatively slim in scope — leaving intact a few of the remaining pillars of the regulation, together with its ban on so-called “soft-money” — or limitless donations — to political events.

“It is a one other blow to McCain-Feingold,” Tara Malloy, a high lawyer with the Marketing campaign Authorized Middle, mentioned of the Cruz resolution. “But it surely appears to be extra of a loss of life by a thousand cuts as an alternative of a physique blow.”

Rick Hasen, an election regulation skilled on the College of California-Irvine’s Legislation college who helps some limits on cash in politics, mentioned Monday’s opinion was a “reduction” for him as a result of it didn’t break vital new floor for a courtroom that has dismantled different provisions of the regulation.

The justices didn’t set up a brand new customary for what quantities to political corruption or disturb the remaining limits on marketing campaign contributions on to candidates, he famous in a weblog publish.

However, he added in an electronic mail to CNN, “the Courtroom has proven itself to not care very a lot in regards to the hazard of corruption, seeing defending the First Modification rights of massive donors as extra vital.”

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This story has been up to date with further response and background data.

CNN’s Tierney Sneed contributed to this report.

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Photos: Pacific Palisades Wildfire Engulfs Homes in an L.A. Neighborhood

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Photos: Pacific Palisades Wildfire Engulfs Homes in an L.A. Neighborhood

A fire in Los Angeles grew with dizzying speed on Tuesday and by the afternoon had engulfed many homes in Pacific Palisades, an affluent coastal neighborhood on the city’s west side.

The fire grew from 300 acres to almost 3,000 by the evening. It was fueled by a fierce windstorm, and the worst could be yet to come: Gusts of up to 100 miles per hour, the strongest Southern California has seen in a decade, were forecast through Wednesday.

The evacuation of Pacific Palisades, home to about 24,000 people and many celebrities, stalled traffic along Sunset Boulevard. Some people abandoned their vehicles and escaped on foot. The Los Angeles Fire Department said it would use a bulldozer to move about 30 abandoned vehicles.

“By no stretch of the imagination are we out of the woods,” Gov. Gavin Newsom said at a news conference on Tuesday afternoon.

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Indonesia places a $28bn bet on free school meals

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Indonesia places a bn bet on free school meals

This article is part of the FT’s Financial Literacy and Inclusion Campaign joint seasonal appeal with Magic Breakfast

Before dawn in the highlands of West Java, dozens of kitchen staff are hard at work making free meals for more than 3,000 schoolchildren in the Indonesian town of Warungkiara.

From 3am, as rain pours outside, employees arrive at a kitchen in a one-storey building to chop and cook hundreds of kilogrammes of fruit, vegetables, rice and eggs. From about 7am, when the town’s children start heading to schools, the kitchen is ready to begin distributing food to students.

Warungkiara’s kitchen is a pilot project. Thousands like it will be rolled out across the country beginning this month as part of President Prabowo Subianto’s flagship programme to provide free lunch for all school children and pregnant mothers. 

Fully implemented, it will be one of the world’s largest free meals programmes, reaching more than 82mn people at an estimated cost of $28bn a year.

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It is a sum expected to strain Indonesia’s already-stretched government finances. But Prabowo, who took office in October, has touted the programme as a solution to improve children’s nutrition and boost local economies — which he hopes will have a ripple effect on economic growth and development in the world’s fourth most-populous country.

“This is a long-term investment in human capital,” said Dadan Hindayana, head of the newly created national nutrition agency, which will oversee the free meals programme. 

“Children who have never seen balanced meals will get to enjoy [such meals] at least once a day, every day. It will impact their growth,” he told the Financial Times in an interview in Jakarta. 

Nasrudin, a field co-ordinator for the free nutritious meal programme © Mas Agung Wilis Yudha Baskoro/FT
Yuni Munggaranti stands in the kitchen, holding a tray with compartments containing various food items.
Yuni Munggaranti, a nutritionist working with the programme © Mas Agung Wilis Yudha Baskoro/FT

Dadan also said the programme would boost productivity across Indonesia as the government increases sourcing of food products.

That could help Prabowo meet his ambitious goal of boosting annual growth from 5 per cent to 8 per cent — though economists say other reforms and investments are also needed.

Prabowo promised the free lunches during his election campaign, but the pledge was dismissed by critics as a populist measure. However, others say there are real benefits, particularly for children’s health and academic performance.

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Stunting — impaired growth and development in children from poor nutrition and repeated infections — has been an issue in Indonesia for decades. Government data shows the prevalence of stunting dropped from 37 per cent in 2013 to 21.5 per cent in 2023, but it remains a problem with longer-term impact. 

The OECD says stunting can lead to lasting impairments to physical and cognitive abilities, as well as disadvantages for health, life expectancy, skills and jobs.

It says infant malnutrition has contributed to poor education performance in primary schools: in 2022 as in previous years, Indonesian students scored significantly worse than the OECD averages in mathematics, reading and science.

The free lunch programme, along with other efforts, “will better prepare children for learning and growing”, the OECD said in a report in November.

A worker in a test kitchen prepares meals by distributing a mixture, possibly scrambled eggs, into compartmentalised trays
The kitchen feeds about 3,000 students every day © Mas Agung Wilis Yudha Baskoro/FT

The pilot project at Warungkiara, a town of 66,000, got under way shortly before Prabowo won February’s presidential election, and illustrates the kind of social and economic impact that the government hopes to trigger. 

Run by a think-tank called Indonesia Food Security Review, which is advising the government on how to implement the programme nationally, it employs about 50 people including cooks, drivers and cleaners. It distributes meals to 20 schools, six days a week. A nutritionist helps design the meals.

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Pahmi Idris, the kitchen manager, said the pilot project had created local jobs and boosted income for staff who were previously housewives, unemployed or worked in the informal sector. All produce is sourced from local farmers and suppliers, Pahmi said.

“Locals who previously did not have income now work here,” he told the FT. Farmers, hawkers and small retailers in the town have seen their income double and farmers are expanding to meet the kitchen’s demand, he added. 

Fahmi Idris stands in a kitchen in Warungkiara Village
Kitchen manager Pahmi Idris: ‘Locals who previously did not have income now work here’ © Mas Agung Wilis Yudha Baskoro

Schools that receive the free meals also said they had seen an improvement in attendance.

“Over time, the absence rate has been decreasing. This also influences the learning process,” said Iswah Ismatullah, principal at the Himmatussalam Islamic high school, which has 109 students.

Primary school head Atmaja, who goes by one name, said some students take a portion of the free meals home to share with siblings or their parents, most of whom are farmers or do odd jobs. 

The Warungkiara kitchen is seen as the benchmark for the programme’s national rollout, but expansion across the vast archipelago of 17,000 islands will face many challenges.

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Indonesia will have to avoid the pitfalls seen in India, which runs the world’s largest free meals programme, catering to 118mn students. Indian government officials and others say the programme has been mismanaged in some places.

Setting up kitchens, sourcing food and distribution in some remote islands could also prove difficult. Dadan from the national nutrition agency said the government could rope in the police, military and non-governmental organisations to help. Indonesia plans to set up nearly 30,000 kitchens, each serving about 3,000 students, when the programme reaches full scale by 2027.

“This is a massive programme that will need the involvement of all parties,” he said.

Two young students smile and enjoy a free lunch
Students at Warungkiara have a free lunch of noodles and vegetables © Mas Agung Wilis Yudha Baskoro/FT

Another big hurdle is finance. An average meal is expected to cost Rp10,000 per day, and the total $28bn cost is expected to include setting up the kitchens and other operational costs.

Indonesia has budgeted Rp71tn ($4bn) for the first year of the programme, but expanding it will test Jakarta’s fiscal strength. Rating agencies say more borrowing could hurt the country’s credit rating.

“The gradual rollout of the free meal programme may add to some recent pressures on Indonesia’s government finances,” said Thomas Rookmaaker, head of Asia-Pacific sovereigns at Fitch Ratings.

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On a recent visit to China, Prabowo signed an agreement with Beijing to support funding for the programme, though the governments did not provide details. 

Any fiscal strains are a distant concern in Warungkiara. Eneng, who works in the pilot kitchen, said the programme had helped increase her family’s income.

“This (kitchen] really helps. The women around here previously did not have any income. Now that we’re working here, we can help our husbands and children,” she said, peeling garlic along with other women in preparation for the next day’s meals.

“As for our children, we are assured that they will have healthy meals. It gives parents peace of mind.”

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Palisades fire: 'Worst is yet to come' as winds gain speed

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Palisades fire: 'Worst is yet to come' as winds gain speed

Firefighters are in for a long and dangerous night battling the Palisades fire as fearsome winds are forecast to grow even stronger and could hinder efforts to fight the blaze by air.

The fire ignited at Piedra Morada Drive at 10:30 a.m. and — fueled by intense wind gusts — had scorched 2,921 acres by early evening, forcing more than 30,000 residents to flee their homes. The extreme wind event blasting Southern California is forecast to peak between 10 p.m. Tuesday and 5 a.m. Wednesday, posing a serious challenge to overnight efforts to combat the growing blaze.

“This event is not only not over, but it is just getting started and will get significantly worse before it gets better,” UCLA climate scientist Daniel Swain said in a briefing just after 4 p.m. Tuesday.

The strongest and most widespread winds are “yet to come,” Swain said, as is the lowest humidity.

Winds were expected to pick up into the evening, possibly making an air attack unfeasible if sustained wind speeds break 30 to 40 mph, said L.A. County Fire Chief Anthony Marrone around 4 p.m. Tuesday.

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Although it might be frustrating for residents to see firefighting aircraft grounded, extreme winds can make those efforts less effective, as water or retardant that is dropped is immediately dispersed by the wind, said Gov. Gavin Newsom, who visited the site of the Palisades fire Tuesday.

“We can be up there all day, making people feel good,” he said, “but we’re not doing any good.”

The combination of extreme winds and critically low humidity create a dangerous recipe for new fires to break out overnight.

“We are anticipating — hopefully we’re wrong — but we’re anticipating other fires happening,” said Newsom, adding that the state had strategically positioned resources in areas of high fire risk.

Swain echoed the governor, saying, “Unfortunately, I do think that is likelier than not that that does, in fact, occur.”

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By around 6:30 p.m. Tuesday, that prediction had come true as a fire broke out in the foothills of Pasadena and quickly grew to 20 acres, according to Pasadena spokeswoman Lisa Derderian. The Pasadena Fire Department was on scene and concerned about the potential for rapid spread amid the fierce winds.

Another fire broke out Tuesday night in the hills above Altadena near Eaton Canyon. The fire has burned around 400 acres by 8:14 p.m. and prompted evacuations in the area west of the Eaton Canyon Golf Course, according to the U.S. Forest Service.

Meanwhile, the Palisades fire continued to charge forward, threatening thousands of homes and scores of businesses.

On Tuesday afternoon, crews were racing to save the Getty Villa and Palisades Charter High School from flames lapping their grounds. The Reel Inn, a seafood restaurant that has been a Malibu institution for more than three decades, appears to have burned in the fire.

The National Weather Service predicts that the ongoing windstorm will be the most destructive to have hit the Los Angeles region since 2011.

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The weather service issued a “particularly dangerous situation” warning for extreme fire danger in wide swaths of Los Angeles and eastern Ventura counties, prior to the ignition of the Palisades fire. That warning is set to expire Thursday.

Although the worst of the winds are expected Tuesday night and Wednesday morning, fire danger will remain high throughout the week.

“The vegetation will become progressively drier the longer the wind event goes on,” said Swain. “So some of the strongest winds will be at the beginning of the event, but some of the driest vegetation will actually come at the end, and so the reality is that there’s going to be a very long period of high fire risk.”

Recent rainfall patterns are exacerbating the fire danger, said Alex Hall, director of the UCLA Center for Climate Science.

“Southern California has experienced a particularly hot summer, followed by almost no precipitation during what is normally our wet season,” he explained. “And all of this comes on the heels of two very rainy years, which means there is plenty of fuel for potential wildfires.”

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Climate change has a part to play in this particularly dangerous event, Swain said.

There’s not much evidence that climate change has increased the likelihood of extreme wind events. There is evidence, however, that it is increasing the overlap between these wind events and periods of extremely dry vegetation conditions during what would typically be the wet season, he said.

Newsom echoed the sentiment that fire danger is no longer contained to a fire season.

“We were here not too long ago [for] the Franklin fire and, a few weeks prior to that, the Mountain fire,” he said. “November, December, now January — there’s no fire season. It’s fire year. It’s year round.”

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