Politics
Trump Administration Cuts Ties With Migrant Shelter Provider After Dropping Child Abuse Lawsuit
The decision appears to conclude a gradual reversal of fortune for Southwest Key, which has worked with the federal government for more than two decades, operating more than 25 shelters across Texas, Arizona and California. It has been awarded more than $6 billion in federal funds since 2007. After the H.H.S. announced that it would review its grants to Southwest Key, Ms. Miracle, the spokeswoman, said that the government had frozen funding and put in place a stop placement order on Southwest Key shelters, forcing the nonprofit to furlough about 5,000 employees.
Housing underage migrants for the federal government has been a financial boon for contractors like Southwest Key, whose award money more than doubled during the family separation policy overseen by Mr. Trump in 2017 and 2018. It was one of several providers that cashed in as the administration scrambled to find shelter for more than 5,000 children forced into federal custody, turning the care of migrant children into a billion-dollar business with little transparency.
The New York Times revealed in 2018 that Southwest Key had funneled government money through a web of for-profit companies to convert public funds into private money for the organization and pay top executives millions of dollars. Shortly after, the Justice Department opened an investigation into possible financial improprieties. Southwest Key also began an internal inquiry, and high-level executives, including its founder and chief financial officer, eventually resigned.
The complaint filed by the Justice Department last year disclosed that Southwest Key had documented dozens of cases of abuse reported by children, the majority of whom were 13 to 17 and came from Guatemala, Honduras and El Salvador. But Southwest Key’s employees did not report abuse they had observed or knew of, or any violations of policies intended to protect minors.
By one account, a worker who sexually abused three girls ages 5, 8 and 11 threatened to kill their families if they told. In another case documented by Southwest Key, a supervisor deliberately changed shifts to be alone with a teenage girl he repeatedly raped, abused and threatened. At night, he would enter her bedroom and those of others in violation of Southwest Key’s policies. The girl was transferred to a different shelter after she reported the abuse.
At the time, a spokeswoman for Southwest Key said that the complaint did not “present the accurate picture of the care and commitment our employees provide to the youth and children,” and that the company remained focused on “the safety, health and well-being” of the children at its shelters.
BEIJING — An extraordinary display of power and precision along Tiananmen Square greeted President Trump in Beijing on Thursday, kicking off a two-day summit with particularly high stakes for the Americans.
Trump’s meetings with his Chinese counterpart, Xi Jinping, began at the Great Hall of the People moments after a welcome ceremony that seemed to impress the president, featuring a Chinese military honor guard and a greeting from excited schoolchildren. American flags waved as “The Star Spangled Banner” rang out on a smoggy day in the heart of the capital.
Children holding Chinese and U.S. flags rehearse before the welcome ceremony for President Trump.
(Maxim Shemetov / Associated Press)
Trump reflected on the stakes of his visit at the top of the meeting, telling Xi that the ceremony was an honor “like few I’ve seen before.”
“There are those who say it may be the biggest summit ever,” he said. “I have such respect for China, the job you’ve done.”
Both men struck a conciliatory tone, despite the agenda for the summit featuring some of the thorniest issues facing the two superpowers today, including the U.S. war in Iran, trade relations and the future of Taiwan.
“We’ve gotten along — when there have been difficulties, we’ve worked it out,” Trump added. “We’re going to have a fantastic future together.”
Trump is expected to ask Xi for help reopening the Strait of Hormuz, a vital commercial waterway disrupted by Iran since the start of the war, and for the extension of a truce in the trade war he started at the beginning of his second term.
China, in turn, will ask the Trump administration not to proceed with arms sales to Taiwan, despite their approval by Congress, and for a declaration of opposition to Taiwanese independence. Beijing also seeks access to top-end chips made by American manufacturers.
Chinese President Xi Jinping and President Trump shake hands at the Great Hall of the People.
(Kenny Holston / Associated Press)
The agenda exposes the mutual dependence of the two rival superpowers, marked by distrust but driven by a quest for cooperation and stability.
The welcome ceremony outside the Great Hall kicked off with Xi shaking the hands of Trump’s delegation, including figures such as his political advisor, James Blair, his communications director, Steven Cheung, and his daughter-in-law, Lara Trump.
They were just a few members of a U.S. delegation accompanying Trump filled with curiosities.
Chinese officials were surprised to learn that Pete Hegseth was joining Trump in Beijing this week, marking the first time a president has brought his secretary of Defense on an official state visit. It wasn’t immediately clear to the Chinese what his inclusion was meant to convey.
Eric Trump, the president’s son, is here, seeking to leverage the family name for lucrative business deals as Beijing aggressively campaigns against government corruption at home. And First Lady Melania Trump decided to stay at home, an unusual snub of such a high-level event.
A contingent of U.S. business leaders was given little notice to prepare for the trip, including the chief executive of Nvidia, who raced to join Trump aboard Air Force One at a refueling stop in Alaska.
The diplomatic faux pas follow weeks of Chinese frustration over what they see as the Trump administration’s lack of preparation — a perceived display of incompetence that boosts their confidence heading into the negotiations.
Over the course of the visit, Trump is expected to visit the Temple of Heaven, a monument to imperial China and Confucian thought in the center of Beijing. Ahead of Trump’s arrival, an area roughly the size of 400 American football fields was closed in preparation for a stop here.
On Thursday night, local time, Trump will return to the Great Hall of the People for a banquet dinner. Additional meetings are scheduled for Friday morning before Trump departs midday for home.
new video loaded: Trump Says He Does Not Think About Economic Hardships Linked to Iran War
transcript
transcript
Trump Says He Does Not Think About Economic Hardships Linked to Iran War
President Trump said on Tuesday that he did not think about the economic hardships Americans face from the war in Iran. Instead, he said that he was focused on preventing Iran from having a nuclear weapon.
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Reporter: “To what extent are Americans’ financial situations motivating you to make a deal?” “Not even a little bit. The only thing that matters when I’m talking about Iran, they can’t have a nuclear weapon. I don’t think about Americans’ financial situation. I don’t think about anybody. I think about one thing: We cannot let Iran have a nuclear weapon. That’s all. That’s the only thing that motivates me.” “Did you say earlier that the only thing that matters to you when it comes to Iran is a nuclear weapon? You’re not considering the financial impact of this war on Americans?” “The most important thing by far, including whether our stock market, which by the way is at an all-time high, but including whether or not our stock market goes up or down a little bit, the most important thing by far is Iran cannot have a nuclear weapon.” “What about the pressure on Americans and prices right now?” “Every American understands.” “He is mixing it up on us a little bit here. That’s fine.” “And so when the President of the United States doesn’t think about Americans’ financial situation. And when the Republicans here are focused on other issues, this is what happens. Your prices go up.” “I don’t know the context in which he made that comment, but I can tell you the president thinks about Americans’ financial situations. I talk to him on average twice a day, sometimes three or four times a day. And we talk about it constantly.”
By McKinnon de Kuyper
May 13, 2026
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The billionaire timeshare magnate who abruptly cut ties with former Rep. Eric Swalwell (D-Calif.) and kicked him out of his California mansion amid sexual misconduct allegations was arrested Tuesday.
Stephen Cloobeck, founder of Diamond Resorts International, turned himself in to the Los Angeles Sheriff’s Department in West Hollywood on Tuesday following a warrant issued for his arrest. He is suspected of a felony charge of attempting to prevent or dissuade a victim or witness from testifying, the California Post reported.
The circumstances of the alleged crime remain unclear. He was released on $300,000 bail, according to jail records. Fox News Digital reached out to the sheriff’s department and to Cloobeck for comment.
BILLIONAIRE SUGAR DADDY KICKS SWALWELL OUT OF HIS MANSION, WANTS $1M BACK AFTER HEINOUS SEX ALLEGATIONS
Billionaire Stephen Cloobeck is pictured alongside then- Rep. Eric Swalwell, D-Calif. Cloobeck, who cut ties with Swalwell amid sexual assault allegations, was arrested Tuesday in California. (Getty Images)
“These charges are false, and we look forward to our day in court,” a spokesperson for Cloobeck told the newspaper.
Cloobeck, a former gubernatorial candidate, most recently supported Swalwell’s bid for California governor before cutting ties with him after sexual assault allegations and leaving the Democratic Party.
DEM SENATOR RIPPED FOR ‘SMEAR’ OF FEMALE ACTIVIST ADVOCATING FOR SWALWELL’S ACCUSERS: ‘VERY BAD LOOK’
Stephen Cloobeck attends an election night watch party at a private residence in Beverly Hills, Calif., on Nov. 5, 2024. (Alberto E. Rodriguez/Getty Images)
“I am no longer supporting Eric. F—ing tell everyone I’m a libertarian. F— you, Democratic Party. I’m a libertarian now,” Cloobeck told the Post at the time.
“I am now a Republican,” he added to Fox 11 LA.
Swalwell has denied the claims against him in a video filmed inside Cloobeck’s home. At the time, Cloobeck—who briefly ran for governor before dropping out and endorsing his former friend—said he kicked Swalwell out of his Beverly Hills mansion, stating that Swalwell “busted the trust” between them.
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“I am no longer associated with a man that takes advantage of women,” Cloobeck told reporters. “I support women’s rights.”
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