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The Trump administration’s latest allegations of mortgage fraud have raised questions about a long-standing housing issue known as owner-occupancy mortgage fraud. But that type of fraud can be difficult to prove, experts say.

President Donald Trump announced in a Truth Social post on Monday night that he was removing Federal Reserve Governor Lisa Cook. He cited allegations made by Federal Housing Finance Agency Director Bill Pulte that Cook committed mortgage fraud by claiming homes in two different states as her primary residence at the same time.

Cook’s attorney on Tuesday said Cook will file a lawsuit to challenge her removal.

“President Trump has no authority to remove Federal Reserve Governor Lisa Cook,” the lawyer, Abbe Lowell, said in a statement.

The Department of Justice has also recently targeted Sen. Adam Schiff, D-Calif., and New York Attorney General Letitia James with similar mortgage fraud allegations.

Here are the key things to know about owner-occupancy mortgage fraud, according to experts.

The main reason a borrower could be motivated to claim a primary residence on a mortgage application is to get a lower interest rate for that home.

Typically, mortgages for a primary residence have lower interest rates and homeowner’s insurance costs, said Keith Gumbinger, vice president of mortgage website HSH.

Mortgage interest rates are generally 0.5% to 1% higher for investment properties than for primary homes, according to Bankrate. Homeowners also typically pay about 25% more for insurance as a landlord compared with a standard homeowners policy, according to the Insurance Information Institute.

Owner-occupied means “you’re going to live there the majority of the time,” Gumbinger said. But there are limited exceptions, including for military service, parents providing housing for a disabled adult child or children providing housing for parents, according to Fannie Mae.

If a homeowner changes primary residences, they need to inform their mortgage lender that the original property is no longer owner-occupied, Gumbinger said.

There are also federal and state tax benefits for primary residences, according to Albert Campo, a certified public accountant and president of Campo Financial Group in Manalapan, New Jersey.

For example, when an owner sells a home and makes a profit, they can take a capital gains exemption worth up to $250,000 for single filers or $500,000 for married couples filing jointly, as long as they meet certain IRS rules, including owner occupancy for two of the past five years.

For tax purposes, a homeowner can have only one primary residence at a time.

When a taxpayer owns more than one home, proving which one is the primary residence is “always based on facts and circumstances,” Campo said. For example, a primary residence is typically where an owner spends most of their time, votes, files their tax returns and receives mail, he said.

A 2023 report from the Federal Reserve Bank of Philadelphia found that more than 22,000 “fraudulent borrowers” misrepresented their owner-occupancy status, out of 584,499 loans originated from 2005 to 2017. The data was based on a subsample from more than 15 million loans originated during this period.

Typically, the fraudulent borrowers took out larger loans and had higher mortgage default rates, the authors found.

However, this type of fraud may be “difficult to detect until long after the mortgage has been originated,” the authors wrote.

“There is a difference between the court of law and the court of public opinion,” Jonathan Kanter, a law professor at Washington University in St. Louis and a former assistant attorney general, told CNBC’s “Squawk Box” last week when asked about Cook. “In the court of law, this is small ball and very difficult to prove.”

“You’d have to establish not only that she filled out the form incorrectly, but she had the specific intent to deceive, to defraud banks, as opposed to just making a mistake,” he said.

During fiscal year 2024, 38 mortgage fraud offenders were sentenced in the federal system, according to the United States Sentencing Commission’s interactive data analyzer. That number is up slightly from 34 offenders in 2023, but down from 426 offenders in 2015, the earliest date in that tool’s dataset. The U.S. Sentencing Commission data does not break out the types of mortgage fraud.

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White House special envoy Steve Witkoff said he is pushing for all hostages held in the Gaza Strip to be returned this week, though negotiations with Hamas still appear to be at an impasse. 

‘We adamantly want, and I’m following the president’s direction here when I say this, all of those hostages home this week,’ Witkoff told Fox News’ Bret Baier on ‘Special Report’ Tuesday night. 

‘There’s been a deal on the table for the last six or seven weeks that would have released 10 of the hostages out of the 20 who we think are alive,’ he said, noting that he believes Hamas is ‘100%’ to blame for the hold-up.

‘It was Hamas who slow played that process, and it is Hamas now who is saying we accept that deal,’ Witkoff added.

Witkoff did not go into detail on what specifically is holding up the return of the hostages who have been held captive in the Gaza Strip for nearly two years following the Oct. 7, 2023, attack on Israel. 

But reports on Tuesday suggested the Israeli security cabinet refused to review a deal that would see the partial release of hostages and Witkoff confirmed the ‘official position’ of Jerusalem is a full return of hostages or no ceasefire deal as it pushes forward with its plans to take Gaza City. 

In a statement to Fox News Digital on Wednesday, the Hostages and Missing Families Forum, a group that represents the families of the hostages, said it is ‘hopeful that with this deal on the table, we will finally see our loved ones return.’ 

‘Time is running out, and we know that only by finalizing this deal can we bring all 50 hostages home – those who are alive to begin their healing journey, and those who were tragically lost to receive a dignified burial,’ it added.  ‘We have no time left – let’s make this deal happen now.’

But the forum also issued a public statement on Tuesday after reports said Israel refused to review a partial return deal, and said, ‘It is deeply disappointing that on the very day when masses of Israelis take to the streets demanding the return of all hostages and an end to the war, the government continues to delay progress on the agreement, contrary to the people’s will.’ 

A demonstration of some 350,000 people took place in Israel’s Hostage Square in Tel Aviv on Tuesday night, according to the Forum, just days after another massive protest took to the streets of Tel Aviv, in which the families of the hostages and supporters again called on Israeli Prime Minister Benjamin Netanyahu to reach a deal with Hamas. 

Witkoff argued that there can be negotiations after the hostages are returned for ‘what next day… looks like in Gaza after this is all done and what the definition of Hamas is’ – suggesting these issues remain major hurdles as Israel has repeatedly vowed the complete destruction of Hamas.

The special envoy said it wasn’t his ‘call’ to say whether the terrorist network should be completely destroyed, but noted there was room for negotiations in returning the hostages as Palestinian prisoners would also be swapped in exchange. 

Fifty hostages continue to be held by Hamas, only 20 of whom are assessed to still be alive. 

President Donald Trump on Monday predicted there would be a ‘conclusive’ end to the war in Gaza within the next ‘two to three weeks,’ though he did not say how this would be accomplished. 

The Forum responded to the pronouncement and said, ‘We pray this is true and that you gave a deadline to end our suffering. You have committed directly to released hostages that you will bring all of the hostages home – now is the time to make that happen.’ 

Witkoff also said Trump would be hosting a meeting at the White House on Wednesday to discuss a ‘day after’ plan for Gaza, though it is unclear who will take part in this meeting. 

When pressed for details on the meeting, a White House official told Fox News Digital, ‘President Trump has been clear that he wants the war to end, and he wants peace and prosperity for everyone in the region. The White House has nothing additional to share on the meeting at this time.’

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Lawyers for the Trump administration filed an emergency appeal to the Supreme Court on Tuesday night asking the justices to halt a lower court injunction and allow it to freeze billions in foreign aid spending previously allocated by Congress — kicking the issue of USAID funding back to the high court for the second time in roughly six months.

At issue is nearly $12 billion in funding allocated to the U.S. Agency for International Development (USAID), and owed by the end of the fiscal year in September. The majority of those funds were axed by President Donald Trump almost immediately after taking office, under the broader mantle of slashing foreign aid and eliminating so-called ‘waste, fraud, and abuse.’  

U.S. Solicitor General D. John Sauer told the Supreme Court in an emergency filing Tuesday that, absent intervention from the high court, the Trump administration would be forced to ‘rapidly obligate some $12 billion in foreign-aid funds’ owed by September 30, or the end of the fiscal year.

Those payments have been held up in court for months, after President Donald Trump signed an executive order on his first day back in office in January seeking to block nearly all foreign aid spending, as part of his administration’s broader crackdown on waste, fraud, and abuse.

That order was blocked by a federal judge in D.C. earlier this year. That judge, U.S. District Judge Amir Ali, ordered the Trump administration to resume payments on billions of dollars in funding for USAID projects that were previously approved by Congress. 

That order was overturned this month by the U.S. District Court of Appeals for the D.C. Circuit, which ruled 2-1 to vacate the lower court injunction.

The appeals court partly vacated Judge Ali’s injunction, rejecting a request from foreign aid groups that had sought to restore the grant payments. The 2-1 majority also ruled that the plaintiffs failed to show Trump had acted ‘plainly’ in excess of his executive branch authorities.

Writing for the majority, Judge Karen L. Henderson, a President George H.W. Bush appointee, said that the plaintiffs lacked the proper cause of action to sue the Trump administration over its decision to withhold the funds, or what is known as impoundment.

But the appeals court has not yet issued a mandate to enforce that ruling — meaning that, for now, the judge’s order, and the payment schedule he previously laid out — remains in place.

Sauer argued in the emergency Supreme Court appeal that the foreign aid groups, which sued the Trump administration this year in order to claw back some of the grant money, have no legal authority to challenge the executive branch on the matter, which is technically under the legal jurisdiction of the Impoundment Control Act.

‘Congress did not upset the delicate interbranch balance by allowing for unlimited, unconstrained private suits,’ Sauer wrote. ‘Any lingering dispute about the proper disposition of funds that the President seeks to rescind shortly before they expire should be left to the political branches, not effectively prejudged by the district court.’

Plaintiffs, for their part, have argued that the executive branch lacks the authority to unilaterally withhold already-appropriated funds, under the Impoundment Control Act (ICA), as well as the Administrative Procedure Act.

The Supreme Court previously ruled 5-4. 

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Microsoft co-founder Bill Gates went to the White House on Tuesday for a meeting with the president, according to a Gates spokesperson.

In a statement obtained by Fox News Digital, the spokesperson noted, ‘Bill met with the president to discuss the importance of U.S. global health programs and health research that is necessary to save lives, protect Americans’ health, and preserve U.S. leadership in the world.’

Fox News Digital reached out to the White House for comment on Wednesday.

Prior to the president’s inauguration for his second term, Wall Street Journal Editor-in-Chief Emma Tucker asked the mega-wealthy figure whether he had met with Trump since Trump’s victory in the 2024 presidential contest. 

Gates said that they had a ‘quite intriguing dinner,’ noting that it lasted more than three hours. 

An individual who Gates explained ‘helps manage things for me’ was also present, as well as Susie Wiles, Gates added.

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Longtime government scientist Susan Monarez is refusing to leave her position as director of the Centers for Disease Control and Prevention (CDC) after the Department of Health and Human Services (HHS) announced she had been removed from the role less than a month after she was sworn in.

Attorneys Mark Zaid and Abbe Lowell said they are representing Monarez and claimed she ‘has neither resigned nor yet been fired.’

The attorneys released a statement on social media, claiming HHS and Secretary Robert F. Kennedy Jr. are weaponizing public health for political gain and putting millions of American lives at risk. 

‘When CDC Director Susan Monarez refused to rubber-stamp unscientific, reckless directives and fire dedicated health experts, she chose protecting the public over serving a political agenda,’ the statement said. ‘For that, she has been targeted. Dr. Monarez has neither resigned nor received notification from the White House that she has been fired, and as a person of integrity and devoted to science, she will not resign.’

The Washington Post reported that sources within the CDC, who spoke on the condition of anonymity, said HHS leaders, including Kennedy, sought to get Monarez to commit to rescinding approvals for certain COVID-19 vaccines. When Monarez did not immediately commit, she was told by administration officials that she must resign or she would be fired. 

Sources also claimed she then attempted to involve the chairman of the Senate’s top health committee, Sen. Bill Cassidy, R-La. The move reportedly further angered Kennedy. 

When reached for comment, a spokesperson for the HHS directed Fox News Digital to the agency’s response shared on its official X account.

‘Susan Monarez is no longer director of the Centers for Disease Control and Prevention,’ HHS said. ‘We thank her for her dedicated service to the American people. Secretary Kennedy has full confidence in his team at the CDC who will continue to be vigilant in protecting Americans against infectious diseases at home and abroad.’

The White House confirmed to Fox News Digital that Monarez was being removed.

‘As her attorney’s statement makes abundantly clear, Susan Monarez is not aligned with the President’s agenda of Making America Healthy Again,’ White House spokesman Kush Desai said in a statement. ‘Since Susan Monarez refused to resign despite informing HHS leadership of her intent to do so, the White House has terminated Monarez from her position with the CDC.’

Monarez was tapped by the Trump administration to lead the CDC after its initial nominee, Dave Weldon, withdrew from contention in March amid fears he might not garner enough support in the Senate to be confirmed. Shortly after Weldon stepped down, Monarez was formally nominated to be the CDC’s permanent director and was eventually confirmed in the final week of July.

During Monarez’s confirmation hearing, she expressed support for vaccines and told lawmakers she has ‘not seen a causal link between vaccines and autism.’

 

Prior to Monarez’s Senate confirmation, CDC directors did not typically require Senate approval, but that changed in 2022 when Congress passed a law making it necessary. Monarez was the first-ever Senate-confirmed CDC director in the agency’s history.

Monarez was also the first CDC director without a medical degree in more than seven decades. However, she does hold a Ph.D. in microbiology and immunology.

After getting her doctorate, Monarez entered the federal government, where she found herself in roles at the White House’s Office of Science and Technology Policy, the National Security Council, the Department of Homeland Security and the Advanced Research Projects Agency for Health (ARPA-H). Her biography on the CDC’s website says she worked on ‘leading efforts to enhance the nation’s biomedical innovation capabilities, including combating antimicrobial resistance, expanding the use of wearables to promote patient health, ensuring personal health data privacy, and improving pandemic preparedness.’

Hours after the news that Monarez would no longer head the CDC, sources confirmed to Fox News Digital that at least three other top CDC officials tendered their resignations, including the CDC’s director of its National Center for Immunization and Respiratory Diseases, Demetre Daskalakis; the director of the National Centers for Emerging and Zoonotic Infectious Disease, Dr. Daniel Jernigan; and the CDC’s chief medical officer, Debra Houry.

Daskalakis posted his lengthy resignation letter on X, citing various reasons for his departure, including ‘the views’ of Secretary Kennedy and his staff. 

Daskalakis said he could not continue to work in an administration that treats the CDC ‘as a tool’ to establish policies that ‘do not reflect scientific reality.’ He specifically cited recent changes Kennedy’s HHS has brought to vaccine scheduling for children and adults, arguing it ‘threaten[s] the lives of the youngest Americans and pregnant people.’ 

The former CDC director also cited the administration’s efforts to ‘erase transgender populations, cease critical domestic and international HIV programming, and terminate key research.’   

Fox News’ David Lewkowict contributed to this report.

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President Donald Trump is reportedly working on a move that would give the U.S. a new military and economic foothold in Africa, counter China and Russia and strike a blow against Islamist terrorists in the region. And now a leading senator has told Fox News Digital this goal can be realized by recognizing the breakaway Somaliland as an independent state.

Somaliland, on the southern coast of the Gulf of Aden, broke away from Somalia in 1991. Its government is said to be offering the U.S. a new air and sea base close to the entrance of the Red Sea, and directly across from Yemen and the Houthis, if the U.S. formally recognizes it, 30% of the world’s container ship traffic is reported to pass through its waters en route to or from the Suez Canal.

In the Oval Office on Aug. 8, Trump told reporters, ‘We’re looking into that right now,’ when asked about the recognition of Somaliland and the possible resettlement of Gazans there, adding, ‘We’re working on that right now, Somaliland’. 

The chairman of the Senate Foreign Relations Subcommittee on Africa, Sen. Ted Cruz, R-Texas., told Fox News Digital, ‘There is a very real opportunity that President Trump will recognize Somaliland during this administration.’

Cruz added, ‘President Trump is bringing a new era of clarity in American national security, after four years of the Biden administration rewarding our enemies and punishing our allies, and recognizing Somaliland should be part of this new era.

‘Somaliland has been a reliable ally to the United States, is integrating itself with us and our allies globally, and is committed to helping us counter efforts by China to undermine the safety and prosperity of Americans,’ he said.

The White House did not respond to a Fox News Digital request for comment.

Neighboring Somalia has been battling Islamist fundamentalist fighters for decades. U.S. Africa Command has increased the number of airstrikes against both ISIS and al-Shabab terrorists under the current administration.

But Somaliland, 99% Muslim, has allegedly eliminated radicalism and has aligned itself with the U.S. and Israel, leading Cruz to tell Fox News Digital, ‘They’re a Muslim country, in a very dangerous part of Africa, showing real courage. I will continue to push for deepening the U.S.-Somaliland partnership, including through the Africa Subcommittee in the Senate, and I expect that my colleagues on both sides of the aisle will be receptive to doing so.’

Earlier this month, Cruz wrote to President Trump about Somaliland, stating, ‘it requires the status of a state. I urge you to grant it that recognition.’

Somaliland’s president, Abdirahman Mohamed Abdullahi , is optimistic, telling the British Guardian newspaper on May 30, ‘Recognition is on the horizon.’ He added, ‘It’s a matter of time. Not if, but when’.

Somaliland’s port at Berbera is the jewel in any Washington deal. Analysts say it is in such a strategic position that both Russia and China have tried to acquire it. Right next door to it is one of Africa’s five longest runways, offering the U.S. the possibility of both a sea and air base that can strike Houthi rebels to the north and Al Shabaab terrorists to the east. 

In his letter to the White House, Cruz wrote, ‘Somaliland has emerged as a critical security and diplomatic partner for the United States, helping America advance our national security interests in the Horn of Africa and beyond. It is strategically located along the

Gulf of Aden, putting it near one of the world’s busiest maritime corridors. It possesses capable armed forces and contributes to regional counterterrorism and piracy operations. It has proposed hosting a U.S. military presence near the Red Sea along the Gulf of Aden.’

The U.S.’s largest military base in Africa is just up the coast in Djibouti. But there are security and surveillance issues at the Camp Lemonnier U.S. base where the Chinese and other nations have opened their own bases and monitoring stations nearby.

Somaliland is also offering the White House access to rare earth minerals essential for high-tech industries, such as lithium and silicon quartz.

The U.S. has described Somalia, with large numbers of both ISIS and al-Qaida-linked operatives, as a terrorist safe haven. Now the increasing presence of China and military forces from countries such as Turkey is reportedly leading some in Washington to be increasingly unhappy with its ‘one Somalia’ policy, where Somaliland continues to be recognized only as a part of Somalia. 

For now, a State Department spokesperson told Fox News Digital the official position: ‘The United States recognizes the sovereignty and territorial integrity of the Federal Republic of Somalia, which includes the territory of Somaliland. The State Department is not in active discussions with Somaliland’s representatives about a deal to recognize Somaliland as a state.’

But, Somaliland’s foreign minister worked Washington’s corridors and politicians in April, and several African sources, including the influential Horn Observer news outlet, have reported that President Abdullahi is expected to come to D.C. ‘soon’. U.S. officials, including the U.S. ambassador to Somalia, Richard Riley, are said to have been to Somaliland to meet with the president at least three times this year.

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Uncle Herschel is returning to the Cracker Barrel chair.

After online outrage by conservatives who accused the country-themed restaurant chain of changing its values or going “woke” when it rolled out a new logo, the company said Tuesday that it was returning to its old branding.

‘We thank our guests for sharing your voices and love for Cracker Barrel. We said we would listen, and we have. Our new logo is going away and our ‘Old Timer’ will remain,’ Cracker Barrel said on Facebook.

‘At Cracker Barrel, it’s always been — and always will be — about serving up delicious food, warm welcomes, and the kind of country hospitality that feels like family,’ the company said. ‘As a proud American institution, our 70,000 hardworking employees look forward to welcoming you to our table soon.’

The new Cracker Barrel logo on a menu in a restaurant in Homestead, Fla., on Thursday.Joe Raedle / Getty Images file

Cracker Barrel, which has restaurants in 43 states, on Aug. 18 announced its new ‘All the More’ campaign and logo change, which removed the old man perched on a chair and the barrel from Cracker Barrel signs.

The new logo did not go over well in some spheres, and on social media, conservative critics accused the restaurant chain of abandoning its traditional values or of being ‘woke.’

President Donald Trump weighed in on the matter earlier Tuesday, writing on his social media platform, Truth Social, that the company should return to the old logo.

After Cracker Barrel announced the reversal Tuesday, Trump said on the platform: ‘Congratulations ‘Cracker Barrel’ on changing your logo back to what it was. All of your fans very much appreciate it.’ Trump also wished the company good luck.

Paul Weaver / SOPA Images/LightRocket via Getty Images

Taylor Budowich, a deputy White House chief of staff, claimed on X that he’d spoken with people at Cracker Barrel by phone Tuesday about the issue and said, ‘They thanked President Trump for weighing in on the issue of their iconic ‘original’ logo.’

Cracker Barrel did not immediately respond to a request for comment about a White House call.

Shares of Cracker Barrel jumped sharply Tuesday night after it announced the reversal. Since the debut of the new logo on Aug. 18, shares are down nearly 13%.

Cracker Barrel tried to tamp down the controversy Monday by admitting ‘we could’ve done a better job sharing who we are and who we’ll always be’ and issuing reassurances that its values had not changed.

The change was part of a “strategic transformation” that started in 2024 to revitalize the brand, CNBC reported when the new logo was introduced. The company has said that the initiative included ‘refreshing the brand identity’ and making changes to its menu.

Other companies have been met with right-wing outrage for advertising or other business decisions, including when Bud Light had a branded content partnership with transgender TikToker Dylan Mulvaney.

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Google has eliminated more than one-third of its managers overseeing small teams, an executive told employees last week, as the company continues its focus on efficiencies across the organization.

“Right now, we have 35% fewer managers, with fewer direct reports” than at this time a year ago, said Brian Welle, vice president of people analytics and performance, according to audio of an all-hands meeting reviewed by CNBC. “So a lot of fast progress there.”

At the meeting, employees asked Welle and other executives about job security, “internal barriers” and Google’s culture after several recent rounds of layoffs, buyouts and reorganizations.

Welle said the idea is to reduce bureaucracy and run the company more efficiently.

“When we look across our entire leadership population, that’s mangers, directors and VPs, we want them to be a smaller percentage of our overall workforce over time,” he said.

The 35% reduction refers to the number of managers who oversee fewer than three people, according to a person familiar with the matter. Many of those managers stayed with the company as individual contributors, said the person, who asked not to be named because the details are private.

Google CEO Sundar Pichai weighed in at the meeting, reiterating the need for the company “to be more efficient as we scale up so we don’t solve everything with headcount.”

Google eliminated about 6% of its workforce in 2023, and has implemented cuts in various divisions since then. Alphabet finance chief Anat Ashkenazi, who joined the company last year, said in October that she would push cost cuts “a little further.” Google has offered buyouts to employees since January, and the company has slowed hiring, asking employees to do more with less.

Regarding the buyouts, executives at the town hall said that a total of 10 product areas have presented “Voluntary Exit Program” offers. They’ve applied to U.S.-based employees in search, marketing, hardware and people operations teams this year.

Fiona Cicconi, Google’s chief people officer, said at last week’s meeting that between 3% and 5% of employees on those teams have accepted the buyouts.

“This has been actually quite successful,” she said, adding “I think we can continue it.”

Pichai said the company executed the voluntary buyouts after listening to employees, who said they preferred that route to blanket layoffs.

“It’s a lot of work that’s gone into implementing the VEP program, and I’m glad we’ve done it,” Pichai said. “It gives people agency, and I’m glad to see it’s worked out well.”

Cicconi said one of the main reasons employees are taking the buyouts is because they want to take time off from work.

“It’s actually quite interesting to see who’s taking a VEP, and it’s people sort of wanting a career break, sometimes to take care of family members,” she said.

CNBC previously reported that the layoffs hurt morale as the company was downsizing while at the same time issuing blowout earnings and seeing its stock price jump. Alphabet’s shares are up 10% this year after climbing 36% in 2024 and 58% the year prior.

At another point in the town hall, employees asked if Google would consider a policy similar to Meta’s “recharge,” a month-long sabbatical that employees earn after five years at the company.

“We have a lot of leaves, not least our vacation, which is there for exactly that — resting and recharging,” said Alexandra Maddison, Google’s senior director of benefits.

She said the company is not going to offer paid sabbatical.

“We’re very confident that our current offering is competitive,” Maddison said.

Meta didn’t immediately respond to a request for comment.

Other executives jumped in to compare the two companies’ benefits.

“I don’t think they have a VEP at Meta by the way,” Cicconi said.

Pichai then asked, to some laughs from the audience, “Should we incorporate all policies of Meta while we’re at it? Or should we only pick and choose the few policies we like?”

“Maybe I should try running the company with all of Meta’s policies,” he continued. “No, probably not.”

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Nearly two dozen Republican state attorneys general sent a letter to Environmental Protection Agency chief Lee Zeldin Tuesday, calling on him to cancel funding to a left-wing environmental group accused of training and lobbying judges on climate policy, Fox News Digital exclusively learned. 

‘As attorney general, I refuse to stand by while Americans’ tax dollars fund radical environmental training for judges across the country,’ Montana Attorney General Austin Knudsen told Fox News Digital of his push to encourage the EPA to end its funding of the Climate Judiciary Project. 

‘The Environmental Law Institute’s Climate Judiciary Project is using woke climate propaganda, under the guise of what they call ‘neutral’ education, to persuade judges and push their wildly unpopular agenda through the court system,’ he said. ‘I commend President Trump’s efforts to cut waste and abuse during the first eight months of his presidency, and I am optimistic that his Administration will do the right thing and halt all funding to ELI.’ 

Knudsen spearheaded the letter sent to Zeldin Tuesday, which included the signatures of 22 other Republican state attorneys general, calling for the EPA to axe its funding to the left-wing environmental nonprofit, called the Environmental Law Institute, which oversees the Climate Judiciary Project (CJP). 

The Environmental Law Institute founded the Climate Judiciary Project in 2018, which pitches itself as a ‘first-of-its-kind effort’ that ‘provides judges with authoritative, objective, and trusted education on climate science, the impacts of climate change, and the ways climate science is arising in the law.’ 

The group, however, has been accused of trying to manipulate judges to make them more amenable to left-wing climate litigation. 

The letter sent Tuesday called on the EPA specifically to end any grants and awards endowed to the group. 

‘We write to bring to your attention grants made by EPA to the Environmental Law Institute (‘ELI’),’ the letter reads. ‘According to its 2024 financial statements, ELI received approximately 13% of its revenue in 2023, and 8.4% in 2024, from EPA awards. ELI also apparently still expected to receive funds from the federal government; its financial statement warned that the collectability of federal grant funds ‘is subject to significant uncertainty related to collectability and continual funding due to (the federal grant) funding freeze or other federal actions.”

The Environmental Law Institute received $637,591 from the EPA in 2024 and $866,402 in 2023 from the EPA, according to nonprofit tax documents published by ProPublica detailing the group’s federal expenditures that year. 

‘The Climate Judiciary Project’s mission is clear: lobby judges in order to make climate change policy through the courts,’ 23 state attorneys general wrote in the letter. ‘An alumni magazine profile said the quiet part out loud, writing that the Climate Judiciary Project co-founder was ‘explaining the science of climate change to a group of people with real power to act on it: judges.’ The Climate Judiciary Project’s tampering raises serious legal and ethical questions.’ 

The Environmental Law Institute, however, in a recent comment to Fox News Digital, has maintained that its educational programs through Climate Judiciary Project are in accordance with the standards established by national judicial education institutions. 

Climate Judiciary Project educational events are done ‘in partnership with leading national judicial education institutions and state judicial authorities, in accordance with their accepted standards,’ a spokesperson for the group said in an emailed statement in July. ‘Its curriculum is fact-based and science-first, grounded in consensus reports and developed with a robust peer review process that meets the highest scholarly standards.’

‘CJP’s work is no different than the work of other continuing judicial education organizations that address important complex topics, including medicine, tech and neuroscience,’ an Environmental Law Institute spokesperson previously told Fox News Digital when asked about its educational programs.

The call for EPA to slash any funds to the Environmental Law Institute was celebrated by leading groups such as the American Energy Institute and the Alliance for Consumers, who lamented in a comment to Fox Digital that taxpayer funds should not be used to fund the group and that ‘courtroom maneuvering’ threatens day-to-day life. 

‘The State Attorneys General are right to call for the elimination of taxpayer funding for the Environmental Law Institute and its Climate Judiciary Project,’ Jason Isaac, CEO of the American Energy Institute, told Fox Digital. ‘This is a coordinated campaign to advance the Green New Deal through the judiciary using so-called climate litigation in the courts. Its curriculum is developed by climate alarmist allies of the plaintiffs and delivered to judges behind closed doors. Public funds should never be used to finance political advocacy disguised as judicial education.’

O.H. Skinner, the executive director of Alliance for Consumers, which is a nonprofit focused on advocating on behalf of American consumers, remarked that ‘as we have long warned, the left has a plan to reshape American society by using lawsuits in courts all across the country, especially in places like Hawaii and other coastal enclaves.’

‘The new wave of revelations about ELI is further concerning evidence of how committed the left is to imposing mandatory Progressive Lifestyle Choices through this courtroom maneuvering and how big a threat it really is to all our ways of life,’ Skinner added. 

The Tuesday letter specifically argued: ‘State consumer protection laws prohibit deceptive and misleading statements to market a product. ELI is representing its training as objective when reality shows that it is not. State Attorneys General are responsible for protecting consumers, and we are concerned by ELI’s statements.’

The EPA has taken a hatchet to millions of dollars doled out under the Biden administration to left-wing groups and other programs deemed a waste of taxpayer funds upon Zeldin’s Senate confirmation as EPA chief in January. 

The EPA under the Trump administration has canceled $20 billion in grants under the Inflation Reduction Act — which has led to an ongoing court battle. Zeldin said in March that the $20 billion in U.S. tax dollars were ‘parked at an outside financial institution in a deliberate effort to limit government oversight, doling out your money through just eight pass-through, politically connected, unqualified, and in some cases brand-new NGOs.’

The state attorneys general reflected on the previous cuts in their call to Zeldin to do the same to ELI funding. 

‘Under President Trump’s bold leadership, federal agencies and the Department of Government Efficiency have saved an estimated $190 billion, including terminating more than 15,000 grants that saved approximately $44 billion,’ the letter states. ‘You have heeded President Trump’s directive and achieved monumental savings for taxpayers. You canceled $20 billion in climate grants under the Inflation Reduction Act. You canceled another $1.7 billion in diversity, equity, and inclusion grants.3 And you canceled 800 environmental justice grants.’ 

Climate Judiciary Project and the Environmental Law Institute previously have come under fire from lawmakers such as Republican Texas Sen. Ted Cruz, who accused the groups of working to ‘train judges’ and ‘make them agreeable to creative climate litigation tactics.’

The Texas Republican recently has argued there is a ‘systematic campaign’ launched by the Chinese Communist Party and American left-wing activists to weaponize the court systems to ‘undermine American energy dominance.’

Climate Judiciary Project is a pivotal player in the ‘lawfare’ as it works to secure ‘judicial capture,’ according to Cruz, Fox Digital has previously reported. 

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The FBI’s raid on John Bolton’s home and office is tied to an investigation that reaches beyond his controversial book, a source told Fox News Digital, fueling speculation that the former Trump adviser could face criminal charges.

The scope of any potential charges against Bolton, who served under President Donald Trump before falling out of favor with him in 2019, is uncertain, but experts tend to agree that Bolton has some legal exposure.

Prominent D.C.-based attorney Mark Zaid, who specializes in national security, said that while there are many unknowns about the Department of Justice’s investigation into Bolton, his memoir, ‘The Room Where It Happened,’ could be an area of vulnerability for him.

‘With respect to Bolton’s book, he is potentially vulnerable if he maintains any copies of early drafts which were determined to contain ‘voluminous’ amounts of classified information when it was first submitted to the White House for review,’ Zaid told Fox New Digital. ‘Those drafts were likely disseminated, per normal course of business, to his literary agent, publisher and lawyer.’

Zaid added that those transmissions could be unlawful under the Espionage Act, a serious set of charges used throughout history to punish spies and leakers of government secrets.

During the first Trump administration, Attorney General Bill Barr opened an investigation into Bolton and brought a civil lawsuit against him over the book days before it was set for release.

The DOJ alleged in the lawsuit that Bolton skipped over normal prepublication review processes and allowed his publisher to move forward with printing a book that contained several passages of classified national security information.

In court papers, Bolton said he did not initially believe his memoir contained classified information, but then he edited some information out of the book after consulting with the National Security Council. Bolton never received a final signoff from the National Security Council before moving forward with publishing. He argued in court papers that the Trump administration’s refusal to approve the memoir’s contents violated his First Amendment rights and that the National Security Council’s review process ‘had been abused in an effort to suppress’ the book, which contained harsh criticisms of Trump.

Judge Royce Lamberth, a D.C.-based Regan appointee, denied the Trump DOJ’s request to block publication of Bolton’s book because, among several reasons, it had already been exposed to publishers. Still, Lamberth faulted Bolton.

‘Defendant Bolton has gambled with the national security of the United States,’ Lamberth wrote in an order at the time. ‘He has exposed his country to harm and himself to civil (and potentially criminal) liability.’

Lamberth found it was likely Bolton ‘jeopardized national security by disclosing classified information’ in violation of various nondisclosure agreements he signed as part of his national security role.

The DOJ never brought charges against Bolton, and the investigation was closed under the Biden administration. The Biden DOJ dismissed the civil lawsuit against Bolton over his book in June 2021.

While Bolton’s book controversy has been at the forefront since the raids at his home and office, one well-placed source familiar with the investigation told Fox News Digital on Monday the investigation is far more expansive than the book. 

The search warrants, which were authorized by a judge, were based on evidence collected overseas by the CIA, the New York Times reported.

Critics note Bolton is the latest target of the Trump DOJ, which despite pledging to end ‘weaponization’ has pursued several of the president’s political rivals. The department has launched grand jury probes into New York Attorney General Letitia James and Sen. Adam Schiff, D-Calif., and is examining Obama-era national security officials who Director of National Intelligence Tulsi Gabbard says tried to undermine Trump’s 2016 victory. Trump has also urged an investigation of former New Jersey Gov. Chris Christie, citing ‘criminal acts’ tied to the George Washington Bridge lane-closure scandal.

Former U.S. Attorney John Fishwick of Virginia suggested the line between honest scrutiny of potential wrongdoing and political revenge has become blurred.

‘Trump DOJ targeting enemies of Trump — Letitia James, Adam Schiff, Federal Reserve Governor [Lisa] Cook and now John Bolton. Trump appears to want them harmed for personal/political reasons but if they broke the law are the investigations justified?’ Fishwick told Fox News Digital in a statement. ‘That question is putting an incredible stress test on our legal system.’

Zaid noted that Bolton could bring claims of a selective or vindictive prosecution if he were indicted but that those are difficult to prove.

Attorney Jason Kander, an Army veteran and former secretary of state of Missouri, said on the podcast ‘Talking Feds’ that even if the DOJ does not secure a conviction against Bolton, the legal process itself is punishment.

‘It’s not just harassment. It’s potential financial ruin,’ Kander said. ‘When they come after you like this it doesn’t matter if there isn’t a scintilla of evidence. It’s a minimum half a million bucks in legal fees in a situation like this.’

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