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Trump Administration Cuts Ties With Migrant Shelter Provider After Dropping Child Abuse Lawsuit

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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.

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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.

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Denise Powell Wins Democratic Primary in Key Nebraska House Race

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Denise Powell Wins Democratic Primary in Key Nebraska House Race

Denise Powell, a political organizer, won the Democratic primary election in a key Nebraska House district, according to The Associated Press.

She will face Brinker Harding, a Republican city councilman, in the general election, a pivotal contest in a battleground district that comes as Democrats try to recapture control of Congress this fall.

Representative Don Bacon, the Republican incumbent in the district and a frequent critic of President Trump, chose not to run for re-election, setting up a high-profile clash for an open seat in Omaha.

Ms. Powell narrowly triumphed in a competitive Democratic primary that centered on an unusual argument: that electing her chief rival, State Senator John Cavanaugh, could make it easier for Republicans to win the White House in 2028.

The argument stemmed from the way Nebraska allocates its electoral votes in presidential elections. Most states follow a winner-take-all approach, but Nebraska gives just two of its votes to the statewide winner, then gives one to the winner of each of its three congressional districts. In recent elections, the Omaha-area district has typically gone blue in presidential contests and awarded its electoral vote accordingly, even as the two other Nebraska congressional districts typically went to the Republican candidate.

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That could make a difference in a close presidential contest.

State Republicans have tried to repeal the so-called blue dot system — named for the blue, liberal dot Omaha represents in a sea of Republican red — but Democrats in the State Legislature have been able to block that effort.

Mr. Cavanaugh’s opponents argued that if he won the House primary and left the State Senate, it would mean one fewer vote to keep the blue dot. Mr. Cavanaugh argued that the system was safe, and that Democrats were likely to be elected in other State Senate seats to compensate for his departure.

The argument may have been enough to help Ms. Powell to victory. A super PAC with ties to Republicans also spent against Mr. Cavanaugh.

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Trump’s upbeat China message collides with deepening Beijing rivalry

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Trump’s upbeat China message collides with deepening Beijing rivalry

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President Donald Trump opened his high-stakes meeting with Chinese President Xi Jinping by predicting a “fantastic future together” — striking an unusually warm tone as his administration pursues new trade and investment deals with Beijing.

“In fact, the longest relationship of our two countries that any president and president has had,” Trump said at the start of the bilateral meeting Thursday local time. “We’ve had a fantastic relationship. We’ve gotten along.”

“And whenever we had a problem, we worked that out very quickly,” he continued. “We’re going to have a fantastic future together.”

Trump also praised Xi directly, calling him “a great leader” and emphasizing the personal relationship between the two leaders as a foundation for future cooperation.

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President Donald Trump opened his high-stakes meeting with Chinese President Xi Jinping by predicting a “fantastic future together.”  (Alex Wong/Getty Images)

TRUMP HEADS TO BEIJING FOR HIGH-STAKES XI TALKS AS TAIWAN TENSIONS, TRADE DISPUTES TEST US STRENGTH

Xi, in his own opening remarks, emphasized cooperation and shared interests between the two countries.

“As leaders of major countries, this year is the 250th anniversary of American independence,” Xi said, according to a translator. “Congratulations to you and to the American people. I always believe that our two countries have more common interests than differences.” 

“Success in one is an opportunity for the other, and a stable bilateral relationship is good for the world,” he continued.

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XI JINPING WARNS TRUMP US WOULD ‘LOSE FROM CONFRONTATION’ WITH CHINA AS RENEWED TRADE WAR LOOMS

“China and the United States both stand to gain from cooperation and lose from confrontation. We should be partners, not rivals. We should help each other succeed and prosper together, and find the right way for major countries to get along well with each other in the new era.”

President Donald Trump and Chinese President Xi Jinping attend a bilateral meeting at the Great Hall of the People in Beijing on May 14, 2026, to discuss the Iran conflict, trade imbalances, the Taiwan situation, and to establish new bilateral boards for economic and AI oversight. (Evan Vucci/Reuters)

Xi added that he looked forward to working with Trump “to set the course for and steer the giant ship of China–U.S. relations so as to make 2026 a historic landmark year that opens up a new chapter in China–U.S. relations.”

The comments came as Trump arrived in Beijing accompanied by a delegation of top American executives, underscoring the administration’s focus on economic dealmaking even as broader tensions between the two countries remain unresolved.

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INSIDE THE ‘DIGITAL LOCKDOWN’ FOR US OFFICIALS AS TRUMP ARRIVES IN CHINA

“I just want to say, on behalf of all of the great delegation that we have … we have the greatest businessmen,” Trump said. “We ask the top 30 in the world. Every single one of them said yes.”

The delegation includes executives from major U.S. firms spanning aerospace, finance, technology and agriculture, including Apple CEO Tim Cook, BlackRock CEO Larry Fink, Blackstone CEO Stephen Schwarzman, Boeing CEO Kelly Ortberg, Tesla and SpaceX CEO Elon Musk, Goldman Sachs CEO David Solomon and Qualcomm CEO Cristiano Amon.

White House officials said ahead of the trip that Americans should expect the president to “deliver more good deals,” with talks expected to include aerospace, agriculture and energy, as well as continued work on a proposed U.S.-China “Board of Trade” and “Board of Investment.”

The emphasis on dealmaking comes after years of friction between Washington and Beijing over trade, technology and military competition. (Kenny Holston/Pool via Reuters)

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A senior administration official said the potential trade framework under discussion could involve “double-digit billion” levels of commerce, along with possible purchase commitments from China in areas such as aircraft and agricultural products.

The emphasis on dealmaking comes after years of friction between Washington and Beijing over trade, technology and military competition.

Trump has imposed sweeping tariffs on Chinese goods — a policy he has continued into his second term — while repeatedly accusing Beijing of unfair trade practices.

He also has criticized past U.S. policy that helped integrate China into the global trading system, arguing Beijing benefited from open markets without offering the same access in return.

But in his opening remarks Thursday, the president emphasized business ties and personal rapport, highlighting what appeared to be an effort to stabilize economic relations between the world’s two largest economies.

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The comments came as administration officials said trade discussions with China are ongoing, alongside talks on issues including Iran, artificial intelligence and other security matters.

Trump’s praise of Xi is consistent with his longstanding approach of using personal diplomacy with foreign leaders, including rivals, as a negotiating tactic — though whether that approach will translate into concrete agreements with China remains to be seen.

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Trump marvels at Chinese display of power as summit kicks off

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Trump marvels at Chinese display of power as summit kicks off

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)

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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.

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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.

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.

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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.

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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.

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