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As doubts grow about President Biden’s mental acuity, the spotlight turns to whether he can step down as the presidential nominee while completing his first term, and what that would mean for Vice President Kamala Harris’ political future.

‘Vice President Kamala Harris owes the American people an explanation as to why she has not been honest about President Biden’s steep decline into incapacity,’ Mike Howell, executive director of the conservative advocacy group Heritage Action, told Fox News Digital.

‘She chose politics over national security and history will judge her for that decision.’

Howell added that Democratic lawmakers are unlikely to call for Biden to retire immediately and allow Harris to take the helm, because ‘to admit that is that they’ve basically been complicit in a lie for the last three and a half years,’ referring to Biden’s declining health.

‘Him stepping down is an implicit endorsement of Kamala Harris being the nominee, because she would be the incumbent president at that point, and so I think that factors into it,’ Howell said. ‘What’s happening right now is there’s just going to be a series of rounds of people increasingly calling for it, and obviously President Biden’s trying to resist those calls as much as possible. But I think it’s unavoidable that more and more do call.’

Despite the growing chorus of concerned lawmakers calling on Biden to suspend his re-election campaign due to his poor debate performance and fading vitality, Biden has repeatedly said he is not dropping out of the race.

‘Most of the Democrats who are questioning whether or challenging President Biden should run are in either swing districts or tough re-election races of their own, or they need independent and Republican votes,’ Democratic strategist Mustafa Rashed told Fox News Digital in an interview.

‘It’s tough,’ Rashed continued. ‘The advantage that the vice president has is that she’s been adjacent to the Oval Office for the last three and a half years, which is something that no one else can say. I would also say that she’s the only person that’s been nationally, publicly and thoroughly vetted right now, like some of the other candidates have not gone through the sort of vetting process that’s required to run for national office.’

Other potential Democratic candidates who have been floated as options to replace Biden include Gov. Gavin Newsom, of California, and Gov. Gretchen Whitmer, of Michigan.

When asked at a Biden-Harris campaign event in New Hampshire this week, Newsom said Harris would likely win in a hypothetical matchup against former President Trump. 

‘I have no doubt about that. And that’s from someone that’s also known her longer than most, before we were both in politics,’ Newsom said, The Associated Press reported. ‘But I don’t expect it’s going to come to that.’

Democrats also met behind closed doors Monday as pressure mounted on Biden to drop out of the race. 

Fox News learned that multiple Democrats on House committees expressed concerns about the viability of Biden continuing to run for re-election against Trump after House Minority Leader Hakeem Jeffries, D-N.Y., held a virtual meeting with ranking Democrats on House panels Sunday afternoon.

Fox is told the consensus among most Democrats on the call who suggested Biden should abandon the race was that the party should focus on Harris as a potential successor.

Additionally, a recent CNN/SSRS poll shows Harris performing slightly better than Biden in a matchup against Trump.

House Republicans are already on the offense against Harris as a possible replacement for Biden’s candidacy should he step down from the race.

GOP lawmakers – in both safe red seats and swing districts being targeted by the left – dismissed Harris as a political threat to their chances in November, arguing she’s still tied to the same progressive Biden policies they believe are unpopular with voters.

Rep. Nick Langworthy, R-N.Y., who served as longtime chair of the New York Republican Party before coming to Congress, previously told Fox News Digital, ‘Kamala Harris is just as responsible for this administration’s failures, but she’s more incompetent.’

A swing-seat Republican who asked not to be named told Fox News Digital they were skeptical Harris would do better on the debate stage than Biden. 

‘I would say she’s the weakest part of the ticket right now, as bad as Biden is,’ that GOP lawmaker said.

Reps. Jerrold Nadler, D-N.Y., Mark Takano, D-Calif., Don Beyer, D-Va., and Adam Smith, D-Wash., reportedly expressed privately that Biden should exit the presidential race as the Democratic nominee on Sunday. Most of them also reportedly said Harris should be the nominee, two people familiar with the meeting told The Associated Press. 

Following reports on the meeting, Beyer issued a statement saying he backs the president staying in the race. 

‘I support President Biden. I support the Biden-Harris ticket, and look forward to helping defeat Donald Trump in November,’ the representative said. ‘I was proud to host an event this week in Northern Virginia with the President, and will continue doing all I can to support the Biden-Harris campaign in Virginia and across the country.’

Fox News’ Elizabeth Elkind, Greg Wehner and Chad Pergram contributed to this report.

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Former U.N. ambassador and former South Carolina Gov. Nikki Haley is releasing all of her delegates to next week’s Republican National Convention and urging them to support former President Trump.

‘The nominating convention is a time for Republican unity,’ Haley said in a statement on Tuesday. ‘I encourage my delegates to support Donald Trump next week in Milwaukee.’

Haley, who was the final challenger against Trump for the 2024 GOP nomination before ending her White House bid four months ago, charged in her statement that ‘Joe Biden is not competent to serve a second term and Kamala Harris would be a disaster for America.’

‘We need a president who will hold our enemies to account, secure our border, cut our debt, and get our economy back on track,’ she urged.

Haley launched her presidential campaign in February of last year, becoming the first major candidate to challenge Trump, who had announced his candidacy three months earlier. She was the final rival to Trump, battling the former president in a contentious two-candidate showdown from the New Hampshire primary in late January through Super Tuesday in early March.

Haley announced that she was suspending her White House campaign on March 6, the day after Trump swept 14 of 15 GOP nominating contests on Super Tuesday.

As she departed the race, Haley made it clear that she intended to keep speaking out. And Haley continued to grab up to 20% of the vote in Republican presidential primaries in the months after she dropped out.

In late May, in her first public comments since announcing the end of her 2024 campaign, Haley said she would vote for Trump.

‘Trump has not been perfect on these policies. I have made that clear many, many times. But Biden has been a catastrophe. So, I will be voting for Trump,’ Haley said.

Haley won a total of 97 delegates during the Republican presidential primaries.

Haley is not planning on attending next week’s convention in Milwaukee, aides told Fox News.

‘She was not invited, and she’s fine with that,’ Haley aide Chaney Denton said. ‘Trump deserves the convention he wants. She’s made it clear she’s voting for him and wishes him the best.’

Word of Haley’s move on Tuesday was first reported by Politico.

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Former President Donald Trump published a screed on Tuesday warning Republican lawmakers that they have no choice but to pass the SAVE Act, warning ‘our whole voting system is under siege.’ 

The Safeguard American Voter Eligibility (SAVE) Act would amend the National Voter Registration Act, requiring states to obtain proof of citizenship from voters for federal elections, and purging non-citizens from voter rolls. 

‘Republicans must pass the Save Act, or go home and cry yourself to sleep,’ Trump wrote on his proprietary social media platform Truth Social. 

He continued, ‘Non citizen Illegal Migrants are getting the right to vote, being pushed by crooked Democrat Politicians who are not being stopped by an equally dishonest Justice Department.’

Under the legislation, voters would be required to provide proof of citizenship via IDs and documentation such as a passport, a government-issued photo ID showing proof the individual was born in the U.S., military IDs, or a valid photo ID as well as documentation showing proof of citizenship, such as a birth certificate, the legislation states. 

The Democratic leadership is urging its House members to vote against the bill in the lead-up to the vote, saying it would place ‘an extreme burden [on] countless Americans’ in order to vote. 

‘The Dems can’t win on their policies, the only way they can win is to CHEAT. They do it at every level of government, and they do it well. That’s how they get an incapacitated moron like Joe Biden elected,’ the former president said in his Truth Social post. ‘The Justice Department is CORRUPT and won’t do a thing to help. They have no shame!’

If the SAVE Act is successfully passed through the House, it faces an uphill battle in the Democrat-controlled Senate. 

Even if the bill overcame the upper chamber of Congress, President Biden has vowed to kill the legislation if asked to sign.

Trump ended his message with a threat to ‘pursue Election Fraudsters at levels never seen before’ if elected in November, saying such individuals would be ‘sent to prison for long periods of time.’

The former president seemed to specifically call out Facebook creator and Meta CEO Mark Zuckerberg, saying, ‘We already know who you are. DON’T DO IT! ZUCKERBUCKS, be careful!’

Fox News Digital’s Emma Colton contributed to this report.

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Some lawmakers are making the case that the Biden presidency is a group effort in order to quell concerns over the president’s mental sharpness and health, as the party stands in disarray with some members considering strategies to dissuade President Biden from seeking re-election.

‘A presidency is more than just one man, one woman, it’s an administration,’ former Obama administration Secretary of Homeland Security Jeh Johnson said on MSNBC’s ‘Morning Joe’ last week. ‘I would take Joe Biden’s worst day at age 86, so long as he has people around him like Avril Haines, Sam Power, Gina Raimondo supporting him, over Donald Trump any day.’

The Wall Street Journal also published a report Monday that outlined how Biden’s ‘inner circle’ – made up of Democrat donors and aides – reportedly kept his signs of aging a secret. Republicans have been more openly skeptical of Biden’s closest aides around him, questioning whether Biden is really at the helm of the country’s leadership at all.

‘Donald Trump’s running on common sense, on restoring common sense versus the lunacy of the last four years in the far left and the shadow government that now is running our country with Joe Biden as its figurehead. That’s what he’s running against,’ Sen. Marco Rubio, R-Fla., said on CNN’s ‘State of the Union’ Sunday.

Sen. Tommy Tuberville, R-Ala., – a strong Trump ally – echoed Rubio’s belief that there is a ‘shadow government’ made up of tight knit Democrat strategists, aides and lawmakers helping Biden behind the scenes. 

‘We’ve all known Chuck Schumer and Nancy Pelosi and Obama’s been running the country along with [Secretary of State] Blinken and [National Security Advisor] Sullivan,’ Tuberville said on Fox News Channel’s ‘Sunday Morning Futures.’ ‘You can tell by Schumer’s actions, Pelosi’s actions, the first two years they were calling the shots.’

‘Hopefully, the people understand that they’ve had total control, not the president but Schumer and Pelosi and all the deep state,’ Tubrerville continued. ‘The deep state’s total control over this, and hopefully we can get control of it and get the Democrats out of power and get Trump and all the Republicans running this country.’

Congressional Democrats will hold caucus meetings on Tuesday regarding Biden’s re-election bid as the party becomes more concerned with the president’s ability to beat former President Trump in November. Lawmakers exiting the meetings have been tight-lipped, though at least one has said there is ‘no consensus’ regarding Biden.

For his part, Biden has repeatedly stated that he will not resign from the race. He issued a public letter to House Democrats on Monday demanding an ‘end’ to the party drama.

‘I am running. I am the leader of the Democratic Party. No one is pushing me out,’ Biden said, according to an aide who posted his comment on X, formerly Twitter, last week.

To prove he has the vitality to remain president another four years, the Biden-Harris campaign has organized a slew of nationwide campaign stops – including across swing states – for Biden to headline.

Fox News Digital reached out to the White House for comment but did not hear back by press deadline. 

Fox News Digital’s Anders Hagstrom contributed to this report. 

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Democrats in Congress mostly resisted calling for President Biden to drop out of the race despite raising private concerns during an all-caucus, closed-door meeting Tuesday, according to reports. 

Lawmakers returned to Washington, D.C., this week after the Fourth of July recess, offering Democrats the first time to get together in person and discuss Biden’s disastrous debate performance two weeks ago. 

However, in a sharply worded letter sent Monday, Biden insisted that he would stay in the race and urged party leaders to refocus their criticisms on former President Trump. The letter seemed to at least temporarily slow the momentum of Democrats who are publicly calling for the president to step aside. Most members instead are towing the party line on Biden publicly, at least for now. 

At least 20 Democratic lawmakers stood up to speak during the nearly two-hour all-caucus meeting Tuesday, in what for many is an existential moment for their country considering a second Trump presidency, The Associated Press reported. Most of those who spoke wanted Biden to end his candidacy, a person granted anonymity to discuss the meeting told the outlet.

However, speaking publicly afterward, most Democrats who had urged against Biden continuing his re-election campaign have recanted, according to Axios. They acknowledged it would be too difficult to replace him as their nominee at this stage, just weeks before Democrats will convene at their convention in Chicago. Conversations between House and Senate Democrats were ‘dour’ and ‘sad,’ lawmakers in the meeting told the AP. 

‘He said he’s going to remain in, he’s our candidate, and we’re going to support him,’ Rep. Jerry Nadler of New York, the top Democrat on the Judiciary Committee, said on CNN. 

Over the weekend, Nadler was among those privately saying Biden should not run, explicitly telling colleagues on a call Sunday that the president needed to drop out of the race, the New York Times reported. Nadler backtracked after Tuesday’s meeting, instead stating that his reservations were ‘beside the point’ and that Biden was ‘going to be our nominee.’ 

‘He has the delegates. I keep telling them that,’ Rep. Emanuel Cleaver, D-Mo., told Politico of Biden. ‘He got 14 million votes. Nobody else has any.’

‘I’m staying with Papa,’ Rep. Adriano Espaillat, D-N.Y., said, according to the AP. He said his constituents understand what the country went through during the COVID-19 pandemic and how Biden led through the crisis. ‘He was fit then, and he’s fit now.’

Democrats on Sunday had described this week as critical for Biden to prove that his campaign is viable. 

Sen. Michael Bennet, D-Colo., who briefly ran for president himself, stated Sunday that Biden needs to ‘reassure the American people that he can run a vigorous campaign to defeat Donald Trump.’ 

Bennett confirmed to CNN on Tuesday that he told lawmakers during the closed-door session he does not believe Biden can defeat Trump in November. 

‘I think we could lose the whole thing,’ he said, referring to the White House and both chambers of Congress. 

While the all-hands meeting resolved most Democrats to inaction, late in the day Tuesday a seventh House Democrat, Rep. Mikie Sherrill of New Jersey, publicly called on Biden not to run for re-election. With Trump seeking to return to the White House, ‘the stakes are too high – and the threat is too real – to stay silent,’ Sherrill said. 

Among the seven who have stuck their necks out publicly by calling for Biden to step aside is Rep. Adam Smith, D-Wash., the ranking member of the Armed Services Committee. 

‘The idea that we are going to slow-walk into fascism because we don’t want to hurt somebody that we respect’s feelings – I cannot even begin to tell you how angry that makes me,’ Smith said, according to the Times.

Before the all-caucus gathering on Tuesday, a smaller group of Democrats facing competitive House races in November were ‘pretty much unanimous’ in a separate meeting of their own that Biden has ‘got to step down,’ Axios reported, citing lawmakers involved. ‘There were actual tears from people, and not for Biden,’ one lawmaker told the outlet. 

The majority of Democratic senators who spoke during the lunch meeting expressed deep concerns about whether Biden can beat Trump in November, though they stopped short of saying he should step down from the race, a person familiar with the conversation and granted anonymity to discuss it told the AP. There were also a handful of senators who defended Biden. 

Senate Majority Leader Chuck Schumer of New York repeated, ‘I’ve said before, I’m with Joe.’

Some are turning more serious attention to Vice President Kamala Harris as an alternative, the AP reported.

Biden spent part of his Tuesday evening speaking on a virtual call with more than 200 Democratic mayors, saying he will win re-election with ‘basic block-and-tackling’ and boasting of the thousands of calls being made to voters, doors being knocked and signs being posted in support of his candidacy, according to a readout from his campaign.

That came after the president met virtually late Monday with the Congressional Black Caucus, whose members are core to Biden’s coalition, thanking them for having his back, and assuring them he would have theirs in a second term. He was also to meet with the Congressional Progressive Caucus, whose leadership – along with that of the Congressional Hispanic Caucus – has said publicly they are sticking with the president.

Rep. Jasmine Crockett of Texas, a freshman Democrat, said there is too much at stake to turn away from Biden at this point in the campaign, saying a second Trump presidency would be extremely harmful to Black Americans across the country. ‘We are not willing to risk our freedoms for somebody feeling good because there’s a different name on the ballot,’ she said.

Having been on the campaign trail with Biden, Crockett told the AP, ‘That is why I can feel so confident, because I have seen more than the 90 minutes that everybody is so concerned about.’

Additionally, Rep. Dean Phillips, D-Minn., who ended his long-shot 2024 Democratic presidential bid months ago, was asked by reporters if he felt vindicated by Democrats calling on Biden to step aside. 

‘If this is vindication, vindication has never been so unfulfilling,’ he said.

The Associated Press contributed to this report. 

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Dr. Kevin O’Connor, President Biden’s physician, has been mostly out of the public’s view despite first overseeing Biden’s health care in 2009 and building what has been described as a cozy relationship with the Biden family over the last 15 years. 

‘I have never had a better commander than Joe Biden,’ O’Connor said in a rare profile interview with his alma mater, New York Institute of Technology College of Osteopathic Medicine, when Biden served as vice president. ‘All politics aside, he approaches his craft with such honor. He’s 100 percent ‘family first.’ He’s ‘genuinely genuine.’’

O’Connor’s name, however, has recently become common in news reports, as speculation mounts that Biden’s mental acuity has slipped and concerns grow that the White House’s credibility regarding information on the president’s health is dwindling amid repeated gaffes, miscues and disjointed remarks Biden has made during public events. 

The White House physician is affectionately known to Biden and his family simply as ‘Doc,’ and was specifically requested by Biden in 2009 to stay on as his physician after serving on the White House Medical Unit under the George W. Bush administration. 

O’Connor was first appointed to the White House Medical Unit in 2006 for what was intended to be a three-year military assignment, according to his profile published by the New York Institute of Technology College of Osteopathic Medicine, from which he graduated in 1992. Instead, ‘Vice President Biden asked O’Connor to stay on,’ the profile continues. O’Connor complied, marking the beginning of their doctor-patient relationship that has reportedly evolved into a cozy relationship with the president’s large family. 

Biden’s 2017 memoir ‘Promise Me, Dad,’ which was re-examined recently by Fox News Digital, features the president reflecting on his close relationship with ‘Doc,’ including O’Connor joining the family on their annual vacation to Nantucket, balking at the family’s ‘browsing extravaganza’ on the tony island. 

The physician’s relationship with the family seemingly grew closer, according to the memoir, when the president’s son, Beau Biden, was diagnosed with brain cancer – which ultimately claimed his life in 2015. 

‘Doc was good with Beau, who was still trying to get his bearings in those first few days. Real fear was starting to creep in. Sometimes Beau would grab him when everybody else was out of earshot to get his honest assessment,’ Biden wrote in the memoir. 

‘‘Whatever it is, this is bad,’ he told Beau, ‘but we’re gonna find out what it is. And once we find out what it is, we will have a plan.’’ 

‘‘Promise?’ Beau asked.’

‘‘Promise.’’ 

In another excerpt, Beau Biden requested O’Connor ‘promise’ to take care of his father if he should die. 

‘‘Seriously, Doc. No matter what happens. Take care of Pop. For real. Promise me. For real,’’ Beau Biden said to O’Connor, according to the book. 

Back in 2018, Biden’s sister-in-law, Sara Biden, described O’Connor as a ‘friend’ who provided medical advice to members of the Biden family beyond the eventual commander in chief. 

‘Colonel O’Connor was actually a friend and he — we would frequently ask for his recommendations if any of us had a medical issue, so it was not uncommon to ask him if he had a recommendation,’ she said in a deposition related to a New York state medical malpractice case involving her daughter.

Republican Texas Congressman Ronny Jackson, who served as former President Obama’s White House physician before also overseeing former President Trump’s health, told the New York Post this month that Jill Biden has a cozy and familial relationship with O’Connor. 

‘Kevin O’Connor is like a son to Jill Biden — she loves him. It’s crazy. Kevin O’Connor was in that job on day one of the Biden administration because they knew they could trust Kevin to say and do anything that needed to be said or done and cover up whatever needed to be covered up. He is part of the Biden family,’ Jackson told the outlet. 

O’Connor, who retired as an Army colonel in 2017, also had a business relationship with the Biden family, Politico reported. He introduced Jim Biden, the president’s younger brother, to military health officials and met with another hospital president as the younger Biden pursued healthcare ventures through the hospital chain Americore in 2017, according to the outlet. 

‘I truly enjoyed our time together the other day,’ O’Connor wrote to a Pennsylvania hospital president after a meeting he shared with Jim Biden, according to Politico. ‘You and your team clearly share our vision, and I look forward to seeing you again in coming months.’ 

Concern over Biden’s mental sharpness hit a fever pitch late last month, when he delivered a botched debate performance that included losing his train of thought at times and giving garbled answers in a subdued and raspy voice. The debate unleashed panic among Democratic allies and members of the media, as they remarked his debate performance was a failure that added fuel to the fire surrounding concerns about Biden’s mental acuity and age. 

Amid the fallout from the debate, as well as his first sit-down interview with the media last week that did not help quell concerns, Biden has vowed to stay in the race. 

‘I want you to know that despite all the speculation in the press and elsewhere, I am firmly committed to staying in this race, to running this race to the end, and to beating Donald Trump,’ Biden wrote in a letter Monday to congressional Democrats, calling on them to end their questions on whether he should end his re-election bid.

‘I wouldn’t be running again if I did not absolutely believe I was the best person to beat Donald Trump in 2024,’ he added.

The White House did not respond to Fox News Digital’s request for comment when asked about O’Connor’s close relationship with the president and the first family or whether the president would be evaluated by an outside doctor. Fox Digital also reached out to O’Connor through George Washington University, where he serves as associate professor of health, human function and rehabilitation sciences, but did not receive a response. 

As the White House and Biden campaign try to dismiss concerns over Biden’s debate performance, repeated gaffes and miscues while in public, the White House press corps has grilled the administration about the president’s health in increasingly fiery exchanges with press secretary Karine Jean-Pierre. On Monday, one White House reporter noted during the press briefing that the administration’s ‘credibility’ regarding the president’s health has been called into question, while another reporter asked Jean-Pierre if the media could hear directly from O’Connor regarding Biden’s health. 

O’Connor has never taken the podium at the White House to speak with the media, Fox News Digital found, including back in 2022, when Biden was diagnosed with COVID-19. 

Former White House doctor under the Trump administration, Sean Conley, spoke to the media when Trump was diagnosed with COVID in 2020, as did Trump’s previous physician Jackson in 2018 to tout the then-president’s ‘good genes’ and how he passed a cognitive test. 

O’Connor has released a handful of statements and updates on the president’s health since Biden was sworn into the nation’s highest office in 2021, including when he was diagnosed with COVID, as well as updates on Biden’s annual physicals. 

His interviews with the media and public events, however, are few and far between. O’Connor did have a sit-down, recorded conversation with the Federation of State Medical Boards in 2022, when he discussed his work in the White House and medical background, as well as another recorded interview with his alma mater last year. 

O’Connor has overwhelmingly brushed off media requests for interviews and comments in recent weeks, various media reports show, including when contacted by Fox News Digital since Biden’s disastrous debate performance on June 27. 

The physician released his latest letter on Monday to address mounting concerns over reports showing a Parkinson’s expert visited the White House eight times across eight months. 

O’Connor said Parkinson’s specialist Dr. Kevin Cannard was chosen for Biden’s annual physicals ‘not because he is a movement disorder specialist, but because he is a highly trained and highly regarded neurologist here at Walter Reed and across the Military Health System, with a very wide expertise which makes him flexible to see a variety of patients and problems.’

The letter added that Biden did not see ​​a neurologist outside his annual physicals. 

No signs of neurological disorders, such as Parkinson’s disease, multiple sclerosis, ascending lateral sclerosis, stroke or cervical myelopathy, were found during Biden’s physical in February, O’Connor said. 

The Parkinson’s expert’s visits to the White House have fanned the flames surrounding the media’s concern that the White House has reportedly not been forthright with the public about the president’s concern. 

On Monday, during the White House press briefing, Jean-Pierre had a fiery exchange with CBS reporter Ed O’Keefe after brushing off questions regarding confirmation of Cannard’s White House visits. 

‘It’s a very basic, direct question,’ O’Keefe shouted at Jean-Pierre. ‘That’s what you should be able to answer by this point.’

‘No, no, no, no, no,’ Jean-Pierre immediately pushed back. ‘Ed, please. A little respect here. Please.’

‘So every year around the president’s physical examination, he sees a neurologist. That’s three times, right? So I am telling you that he has seen a neurologist three times while he has been in this presidency. That’s what I’m saying,’ Jean-Pierre continued. 

O’Keefe continued to press the matter, with O’Connor’s letter confirming Cannard’s White House visits later Monday. 

President Biden was pressed in an interview with George Stephanopoulos last week on whether he would take a cognitive test and release the results to the public, which Biden repeatedly dodged. 

‘Have you had the specific cognitive tests, and have you had a neurologist, a specialist, do an examination?’ Stephanopoulos asked.

‘No, no one said I had to. … They said I’m good,’ Biden responded.

Fox News Digital’s Landon Mion and Joseph A. Wulfsohn contributed to this report. 

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UiPath, a developer of automation software, is cutting 10% of its workforce, or about 420 jobs, as part of a broader restructuring, the company said in filing with the SEC on Tuesday.

Most of the layoffs will be implemented by the end of the first quarter of fiscal 2026, the company said. That quarter ends next April.

UiPath shares dropped about 7% on Tuesday and have now lost more than half their value this year. The Nasdaq is up 23% over that stretch. UiPath has faced a dramatic slowing of revenue growth following its IPO in 2021, which was one of the largest U.S. software offerings on record.

While UiPath reported better-than-expected fiscal first-quarter earnings in May, the company lowered its revenue guidance for the full year, and said it now expects between $1.4 billion and $1.41 billion compared with previous guidance of $1.55 billion to $1.56 billion. Its current forecast would equal annual growth of about 7.5%, down from 24% the prior year.

UiPath makes software that automates repetitive tasks. The company announced in May that CEO Rob Enslin was resigning effective June 1, and would be succeeded by co-founder Daniel Dines, who had stepped down as co-CEO in January. That move drove the stock down 30%.

UiPath said Tuesday that it expects to incur $15 million to $20 million in costs related to the layoffs, and total restructuring costs between $17 million and $25 million. The company previously announced two rounds of job cuts in 2022.

“These changes reflect efforts to reshape the organization by streamlining the Company’s structure, particularly in operational and corporate functions, better prioritizing our go-to-market investments and focusing our research and development investments on artificial intelligence and driving innovation across our platform,” UiPath said in Tuesday’s statement.

— CNBC’s Rohan Goswami contributed to this report.

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When Etsy launched almost two decades ago, the site attracted artisans and craft makers, who finally had a place online where they could sell their niche products and reach a large audience. But in recent years, Etsy has found itself overrun with mass-produced, generic items from resellers who have learned how to game the website and crowd out handcrafted products.

Now Etsy CEO Josh Silverman wants the company, whose stated mission is to “keep commerce human,” to get back to its roots.

The company on Tuesday is launching a major overhaul of the policies that govern its site to make it “crystal clear” to shoppers what products belong on Etsy, Silverman said in an interview with CNBC. The changes include new labels on its website and app to show how each seller created a particular item.

“We’re positioning ourselves to answer the call for original goods and real people by dialing up the things that make Etsy, Etsy,” Silverman said.

Etsy is rolling out a new marketing campaign around the policy changes, including a TV spot that shows ceramicists, clothing makers and other artists, followed by a smashed robotic arm. The platform’s new rules require all items to incorporate “a human touch” as outlined by its creativity standards. Each product has to fall into one of four categories: made by a seller (either by hand or using automated tools), designed by a seller, handpicked by a seller, or sourced by a seller.

With the changes, Etsy is hoping it can keep buyers and sellers returning to its site at a time when e-commerce is increasingly being dominated by Amazon and upstarts like China-linked Temu and Shein, which provide shoppers with cheap goods delivered to their doorsteps in a few days. The stakes are huge, as eMarketer estimates the global e-commerce market is projected to cross $6 trillion this year.

“I feel like there’s a race to the bottom in terms of commoditized commerce right now and almost everyone in e-commerce is playing that race,” Silverman said. “They’re selling the exact same product and they’re trying to sell it to you for 2 cents cheaper, or ship it two hours faster.”

Etsy has struggled to navigate the changing market dynamics. In its most recent quarter, gross merchandise sales, or the dollar value of items sold in its marketplace, slumped 3.7% from the prior year to $3 billion. The stock has lost more than 80% of its value since peaking in late 2021. It’s down 32% in 2024, while the Nasdaq has gained 23% over that stretch and closed at a record on Monday.

In December, Etsy laid off 11% of its workforce, with Silverman citing the “very challenging macro and competitive environment” as reasons for the cuts.

The company is also dealing with pressure from activist Elliott Management, which has amassed a roughly 13% stake in the company, making it Etsy’s largest investor. In February, Elliott partner Marc Steinberg joined Etsy’s board.

The roller coaster started earlier. Etsy went public in 2015, forcing the company to start answering to shareholders’ demands for growth, a contrast to its feel-good, socially conscious culture.

Etsy’s business exploded during the pandemic, spurred by a flood of mask buyers. The stock price quadrupled in 2020, and the number of businesses selling goods on the site more than doubled to 9 million between 2020 and 2023.

Until now, Etsy has used its “house rules” to police the site. The key policy was that “everything listed for sale on Etsy must be handmade, vintage, or a craft supply.” Resellers were prohibited.

The new rules are more specific and updated to reflect today’s realities. For example, a 3D-printed sculpture is considered “made by a seller.” It’s forbidden for a seller to add a single sticker to a commercially available face mask and pass it off as handcrafted. Regarding artificial intelligence-generated content, the policies note that “seller-prompted AI art,” such as a dog dressed in regalia, qualifies as “designed by a seller,” but a digital download of “over 5000 ChatGPT prompts” isn’t allowed.

Etsy has for years been trying to balance preserving its image as a place for unique, handcrafted goods, with an effort to bolster the selection of items to compete with its bigger rivals. For early sellers like Ashley Smith, the changes haven’t always been welcome.

Smith began selling custom wedding handkerchiefs on Etsy through her business, The Polka Dotted Bee, in 2011. Smith said Etsy was then a place where you could “search endlessly for amazing things that people were making,” and has turned into a site increasingly dominated by generic goods.

One of Etsy’s biggest changes came in 2013, when the company allowed sellers to use production partners. Rather than making products themselves, sellers could turn to contract manufacturers for help with their products.

Abby Glassenberg applauded the move. Glassenberg, who opened her handmade stuffed animal shop on Etsy in 2005, said it meant she only needed to create a pattern once and could sell “infinite copies,” cutting down on her workload. Her Etsy shop went from being a hobby business to a full-time career, she said.

However, Glassenberg understands the tension, as many Etsy consumers still want the handcrafted experience.

“Handmade doesn’t scale,” she said. “That’s why we like it, that’s why human beings like it.”

Glassenberg gave the example of a crafted fork that’s been forged and cut by human hands.

“I’m going to pay $120 for it, and use it and love it forever,” she said. “There’s no way a person could make 100,000 of them a month, and that’s why we love it.”

Competing on a bigger stage is different though, and Smith said the mainstream preference for cheap and quick goods creates “an uphill battle for sellers and for Etsy.”

Temu and Shein have grown their presence in the U.S. in recent years, luring American shoppers with deep discounts on clothing, jewelry, home goods and other products. Silverman has previously acknowledged that the sites “are taking a little bit of share from everyone.”

He’s now making it clear to sellers and customers that the company will compete on its own terms.

“The solution to that for Etsy is not to try to play that game,” Silverman said.

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Millions flock to Barcelona every year to enjoy a sweet taste of idyllic European life. But over the weekend, thousands of locals marched through the streets and sprayed visitors with water guns in outrage over mass tourism.

Protesters were seen clapping and chanting, “Tourists go home!” and carrying signs with anti-tourist slogans, arguing that the flood of visitors has driven up living costs for residents. 

About 2,800 people participated in the protest according to the Guàrdia Urbana de Barcelona, the municipal city police force, Spanish paper El País reported. But members of the protest group, the Assemblea de Barris pel Decreixement Turístic, which translates to the Neighborhood Assembly for Tourist Degrowth, say as many as 20,000 joined, the paper reported.

“The tourism and hotels is the group that really makes big money, but all the people are in a very poor situation and they don’t have enough money to live. That’s the problem,” protester Joan Navarro-Bertran said. 

Barcelona is a gem in Western Europe, home to iconic sites like La Sagrada Familia — a cathedral designed by famed architect Antoni Gaudi that’s been under construction for more than 100 years — sparkling blue beaches and famous local cuisine. 

Tourism is also a major part of the local economy. Last year, about 26 million people visited the Barcelona area spending 9.6 billion euro (10.4 billion USD) in the city, according to the Tourism Observatory of Barcelona. 

A great part of the agitation among locals is the increasing price of housing and the displacement of long term residents.

Rent in the city has risen nearly 70% over the past decade, Mayor Jaume Collboni said, The BBC reported. In June, Collboni announced a plan to stop renewing permits for rentals used by foreign visitors by 2028, a move that would make 10,000 units available to locals in four years. 

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The rise of Asian fast fashion retailer Shein already has Amazon on alert, but its plans of selling proprietary supply-chain technology and services to companies around the world has attracted attention from another corner: U.S. cybersecurity firms and national security experts who warn of the potential for a company with close ties to China spying on the supply chain as it seeks to grow its global logistics footprint.

Shein logistics software is in beta testing with select supply chain customers, according to a person familiar with its plans.

The U.S. supply chain has millions of connection points that link companies of all sizes. What makes the connections hum are application programming interfaces, or APIs, used by companies to increase efficiencies and save money. API software allows applications to communicate with each other in real-time and is crucial to logistics companies to integrate with freight providers, streamline operations, and create efficiencies for providers in their supply chain and ultimately, the end customer.

“The APIs in the logistics infrastructure are very interconnected, often without cybersecurity being contemplated,” said Lee Kair, principal and head of the transportation and innovation practice at The Chertoff Group, who formerly served as a top official at the Transportation Security Administration.

Cyber​​security experts and policy analysts say the supply chain of vendors is constantly changing, and the potential to gain data access is as simple as identifying the weakest link in a company’s data network. Typically, small companies have more vulnerable back-office systems, with weaker cyber protocols. “There is a tremendous amount of logistics integration in the world of fast fashion. These integrations can be compromised for nefarious purposes to expose customer data or compromise other connected systems,” Kair said.

According to data from Exiger, a supply chain intelligence intelligence company used by the U.S. government and critical infrastructure industries for risk management, there is a complex web of entities connected to Shein which indicates the company’s supply chain is more expansive and complex than most people realize. 

Exiger data shows that while Shein has 44 direct relationships, such as with its parent company Zoetop, and discloses over 5,000 suppliers, an analysis of all of its materials producers shows a supply chain connectivity map that expands substantially. In all, 10,821 companies comprise a supply chain one tier away from Shein. Drilling down deeper into that network of those Shein partners, it expands to 50,000-plus entities, including major U.S. companies, such as Forever 21, operated by Authentic Holdings and mall operator Simon Property Group — both of which announced formal partnerships with Shein last year focused on access to bricks-and-mortar retail.

Allowing Shein to embed its technology within U.S. supply chains could undermine the competitive landscape, violate regulatory standards, and introduce a host of risks, including cybersecurity, said Dewardric McNeal, managing director and senior policy analyst at Longview Global, who served as a policy expert on Asia for the Obama administration’s Department of Defense.

“Given the intricate nature of the U.S. and global supply chains, the potential for espionage or data gathering is a significant risk,” McNeal said. “Shein’s software could provide unprecedented access to sensitive supply chain data, which the Chinese government could seize under its laws. This exposure poses a direct threat to U.S. supply chain integrity, making it vulnerable to exploitation and manipulation.”

Shein has made moves to distance itself from Chinese affiliations. In 2022, Shein moved its headquarters from China to Singapore for regulatory and financial reasons. However, the company’s supply chains and warehouses are still in China.

“The concern of any company with significant Chinese ownership and physical presence is the legal framework in China,” Kair said. “Chinese law requires the company’s cooperation in providing sensitive information related to U.S. citizens to the Chinese government. Even with a headquarters based in Singapore, company supply chain data could be subject to seizure by the Chinese. This is a clear vulnerability of U.S. customer data.”

Kair referred to the moving of the company’s headquarters from China to Singapore to ease regulatory scrutiny as another example of the practice known as “Singapore washing.”

There are certifications in place for companies to prove their information security controls meet accepted corporate standards, including a SOC2 Type II Report created by a third party auditing firm to examine a company’s internal controls and how well they safeguard customer data — an audit that can take several months or more. The other primary certification is an ISO 27001 certification, which is the international industry standard for information security management systems, and its extension, ISO 27701 — both of which Shein says are among its implementation of industry standard controls to protect customers’ data.

“We try to limit our data collection to the minimum amount of information necessary to process commercial transactions,” Shein said in a statement to CNBC. “We have built systems in accordance with leading data protection frameworks such as the International Standards Organization’s standard 27001 and 27701,” it stated.

The International Standards Organization, which maintains ISO standards, explained by email that it does not carry out any certifications, which are issued independently of ISO by the various national and international certification bodies operating around the world. “As such, the ISO Central Secretariat doesn’t have a database of these certifications,” it wrote. Certified companies have an obligation to inform customers of the name of the organization having issued the certificate, and verification of certification should be addressed to that certification organization. CNBC searched the ISO’s IAF CertSearch database to find a certificate for Shein or its parent company Zoetop, but no certificate validation was found.

Shein told CNBC that it has the relevant certifications from third-party auditors.

To allay national security concerns, Shein has set up data storage in respective markets. It stores U.S. customer data within Microsoft U.S.-based Azure cloud and AWS US-based cloud. In the EU, customer data is stored in Frankfurt, Germany. Payment data is not collected by the company in the U.S., but by American payment processing company, Worldpay, which is majority owned by public equity firm GTCR.

The data stored in China covers its industrial supplier management and digital merchant system, which facilitates the transactions from garment raw materials — ancillary materials like buttons, zippers — in moving the product in China.

Ram Ben Tzion, co-founder and CEO of Publican, a digital vetting platform for global trade, tells CNBC it is possible for Shein, and the Chinese government, to misuse supply chain and consumer data. He says the effort to raise Shein’s profile as a global logistics provider is directly related to the intensifying economic battle between the U.S. and China. “You are now seeing this new business service being offered,” said Ben Tzion.

“Pushing Shein as a logistics company is a response or retaliation to the U.S. tightening up everything outsourcing from China,” he said. “This is a way for China to regain a hold on the global supply chain,” he added, referring to the flow of trade away from China, and Chinese giants finding it difficult to raise capital in the U.S. market.

Shein’s manufacturing and supply chain infrastructure has also presented legal issues for partners and political blowback in the U.S. related to the longstanding international issue of forced labor in China. The source familiar with Shein’s operations said it is in compliance with policies from Social Accountability International, an NGO that sets strict international fair labor standards.

McNeal said there are significant concerns about Shein’s supply chains being deeply intertwined with forced labor from Xinjiang Province in potential violation of the Uyghur Forced Labor Protection Act. “Supporting a company with such links contradicts U.S. regulatory efforts and ethical standards and could increase scrutiny from the Department of Homeland Security’s, Customs and Border Patrol and the UFLPA Entities List Office,” he said. 

Shein’s planned U.S. IPO is considered “all but dead,” with several powerful political figures in the nation’s capital among those who sought to block it for reasons including its supply chain issues and use of trade loopholes (Shein is now pursuing a potential London listing instead). Shein has also been spurned by the U.S. retail industry’s largest trade group, into which it sought membership.

Shein’s cybersecurity protocols have previously come under fire. In October 2022, the New York Attorney General fined Shein, its affiliate Romwe, and parent company Zoetop for $1.9 million over its handling of a 2018 data breach in which 39 million Shein accounts and seven million Romwe accounts were stolen, including accounts for more than 800,000 New York residents. 

“Data ownership and protecting against cybersecurity threats are absolutely essential in the context of global supply chains,” said Srini Cherukuri, vice president of IT infrastructure & chief information security officer at ITS Logistics. “Conducting due diligence of data security and privacy practices of everyone in the supply chain is crucial to protecting against cybersecurity attacks, mitigating impacts, and optimizing the recovery time of business operations.”

Shein’s dominance lies in the company’s hyper-flexible supply chain, according to a recent report from supply chain intelligence firm Zero100. It found that using over 5,400 nearby factories in Guangzhou for micro-batch production, the company is able to work with rapi design-to-delivery cycles, lower production costs, and minimize inventory risk. Led by founder Chris Xu’s deep knowledge of SEO and online marketing, Shein has also developed a data-driven approach to fuel its growth.

Integrating continuous, real-time AI data across its marketplace platform, Shein enables “dynamic demand-supply matching, data-driven trendspotting, and algorithmic supplier selection, with AI outputs feeding into subsequent models for comprehensive decision-making across the value chain,” Zero100 stated.

That supply chain efficiency is being hailed as a positive, but Ben Tzion said that smaller manufacturers and social media influencers should understand that China’s effort to push Shein as a logistics company “is an attempt to distance itself from the liabilities associated with its trade practices and push it on to smaller business owners.”

Using Shein for logistics also means giving up all control of their supply chain and followers. “It is a safe assumption to say using a third-party like Shein for manufacturing and production will give Shein complete access to all company information, as well as its consumers and followers’ shopping habits,” he said.

Logistics services tied to production of items like sneakers and apparel in Asia require multiple supply chain touchpoints.

“The average touch point for a sneaker and apparel is 5.6,” said Eric Fullerton, senior director of product marketing for supply chain research firm Project44. “These shipments on average use three out of four modes of transportation [ocean, rail, truck, air].”

According to Project44′s analysis, sneakers and apparel travel an average of 42% around the world during the manufacturing process. The average distance traveled from the factory to the distribution center is 9,630 miles. That is long enough to walk back and forth across the United States nearly four times. The average shipment travels through 8.4 states in the US.

“If you are an old school retailer, you don’t want to give your sales, inventory, geographic strategy to a fast fashion competitor that could make a knockoff product,” Fullerton said. “In a supply chain crisis, would Shein prioritize the supply chain fulfillment of a competitor or would they prioritize their own?

In a retail world of razor-thin margins, more organizations see supply chain efficiency as a way to win the battle of the purse strings. “Not only would Shein be able to knock off the product, but they would also be able to identify the region where it is selling and for how much,” Fullerton said. “This supply chain data would provide Shein with the ability to see a company’s distribution strategy.”

Amassing supply chain data makes sense for Shein from both financial and strategic standpoints, according to McNeal. “Purchasing this software provides Shein with an additional revenue stream, thereby strengthening its financial position and competitive edge in the market,” he said. In addition, using Shein’s supply chain services and software, foreign companies grant it access to their data. “This access enables Shein to enhance its AI and algorithmic models, leading to more efficient operations and better market intelligence for Shein,” McNeal said.

That may ultimately place firms at odds with a growing Asian retail and logistics giant. “This makes foreign firms vulnerable to over-reliance on a competitor, potentially compromising their own ability to harness and use their data and strengthen their supply chain and logistics operations.”

Shein’s rapid rise has led Amazon to deepen its own ties within China. CNBC recently learned that Amazon plans to launch a new section on its site dedicated to low-priced fashion and lifestyle items that will allow Chinese sellers to ship directly to U.S. consumers. In December, Amazon announced a new “innovation center” in Shenzhen, a popular technology and manufacturing hub, and it also slashed the fees it charges merchants selling clothing priced below $20.

Meanwhile, the U.S. government has a close eye on companies with ties to China and where supply chains or data relationships are a national security issue, Kair said. “The scrutiny on Shein by U.S. regulators and legislators is consistent with their supply chain and data security concerns of other companies such as TikTok, DJI drones, and manufacturers of cranes operated in U.S. ports.”

A Department of Transportation spokesperson referred CNBC to the Commerce Department and the National Security Council. A Department of Commerce spokesperson wrote in an email that it is, “committed to protecting U.S. information and communications technology supply chains. We will continue to proactively identify and mitigate vulnerabilities in the U.S. ICTS supply chain and safeguard our national security.”

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