New York City has committed more than $1 billion to fully reconstruct the century-old Riegelmann Boardwalk at Coney Island, a project city officials describe as both an economic-development engine and a defense against rising seas—even as fresh questions surface this week about how long residents will have to wait. The commitment was announced by the New York City Economic Development Corporation (NYCEDC) and the New York City Department of Parks and Recreation, with NYCEDC President and CEO Andrew Kimball calling it exactly the kind of investment the neighborhood deserves, and Parks Commissioner Iris Rodriguez-Rosa describing it as preparing the boardwalk to safely welcome visitors for another 100 years.

The scope is comprehensive. The plan calls for rebuilding the entire 2.7-mile boardwalk “from piles to topside,” replacing structural pilings, decking and utilities while elevating sections to improve storm protection. The project also includes renovations to restrooms, lifeguard stations and shade pavilions. The city plans to partner with a design-build team, with funding extending through 2032. A separate $42 million project will renovate the adjacent Abe Stark Sports Center and its ice rink, an investment business leaders hope will attract visitors during the winter months and transform Coney Island into more of a year-round destination.

That year-round strategy is central to the business case. Coney Island remains one of Brooklyn’s busiest public attractions, drawing millions of tourists and local visitors annually while supporting an economy built around amusement parks, restaurants, food vendors and small businesses that depend heavily on seasonal foot traffic. Extending the visitor season could provide a meaningful boost to businesses ranging from the famous hot dog stands to the rides operating inside the historic amusement district.

The boardwalk reconstruction is also part of a much larger redevelopment initiative. Under the Coney Island West plan, New York City intends to add approximately 1,500 new homes, with roughly one-quarter designated as affordable housing, alongside new ground-floor retail space and additional public parking on city-owned property. Officials say the combined investment will create years of construction work, new housing opportunities and permanent jobs. For contractors, engineers, suppliers and firms specializing in resilient coastal infrastructure, the billion-dollar project represents a significant pipeline of future business, particularly for minority- and women-owned businesses that frequently participate in public infrastructure projects.

There is, however, an important catch. The New York City Department of Parks and Recreation told CBS News that its carpentry crews already perform repairs on the landmark boardwalk five days a week between April and November, maintaining a structure made up of more than one million wooden boards that constantly require replacement. Local residents—including one who launched a petition calling for faster repairs—argue that the full reconstruction remains years away. Current estimates place the project in the research and design phase through at least 2027, with construction beginning afterward. For many residents dealing with deteriorating boards, exposed nails and structural wear, funding the project and completing the work remain two very different things.

The financing also carries political significance. The $1 billion commitment was secured during the final capital budget approved under former Mayor Eric Adams, meaning responsibility for executing the project now rests with the current administration. Large public infrastructure projects in New York have historically faced delays between funding announcements and groundbreaking, and with community planning and design work still ongoing, the boardwalk’s timeline leaves considerable room for slippage.

Another issue remains unresolved: what the rebuilt boardwalk should actually look like. Longtime business owners and neighborhood advocates want the historic wooden surface preserved, arguing that its traditional appearance forms part of Coney Island’s identity and visitor appeal. City planners have explored more durable materials and selective elevation to improve storm resilience and reduce future maintenance costs. The final design decision will influence not only the boardwalk’s appearance but also its long-term operating expenses.

For now, the headline remains straightforward: New York has committed more than $1 billion to completely rebuild one of Brooklyn’s best-known landmarks while tying the investment to new housing, infrastructure improvements and economic development. The real test will be whether the city can move from planning documents to active construction before the aging boardwalk deteriorates further under the millions of visitors who continue to use it each year.

JBizNews Desk | New York
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Blackstone Inc.’s data center arm QTS is walking away from what would have been the largest data center campus on earth. In a withdrawal notice filed at the Virginia Supreme Court on Thursday, July 2, lawyers for QTS told the court the company had decided to terminate the Digital Gateway project and pull its associated filings. The move ends a years-long legal fight over a 2,100-acre site in Prince William County and hands a clear defeat to the developer and its parent, private equity giant Blackstone.

The project, known as the Prince William Digital Gateway, was enormous. Plans called for up to 37 data center buildings and more than 22 million square feet of computing space along Pageland Lane, next to Manassas National Battlefield Park about 35 miles west of Washington. At full build-out it would have been the biggest data center complex in the world—a footprint roughly twice the size of New York’s Central Park, with power needs rivaling a small city.

QTS, which was developing the land alongside Compass Datacenters, said the decision came after careful consideration. The company noted the project had cleared years of planning, analysis, and public review, and had been approved by the Prince William Board of County Supervisors. QTS said the campus would have delivered tens of billions of dollars in capital investment, along with local tax revenue and thousands of construction and permanent jobs for the county.

The dispute goes back to December 2023, when the county board—then led by Chair Ann Wheeler, a Democrat who backed data centers—approved the rezoning after a marathon 27-hour public hearing at which more than 400 people spoke. Opponents sued almost immediately, arguing the county broke state and local rules governing public notice requirements and rushed the vote through before a new, more skeptical board took office.

The courts agreed. Last August, Prince William Circuit Court Judge Kimberly Irving ruled the rezonings void because of improper public notice. On March 31, the Virginia Court of Appeals unanimously upheld that decision. Two lawsuits drove the challenge, one led by the Oak Valley Homeowners Association and another by the American Battlefield Trust, a preservation group focused on the nearby Civil War site.

One by one, the project’s backers dropped out. Prince William County withdrew from the appeal in April under Chair Deshundra Jefferson, a Democrat and longtime data center critic, followed by co-developer Compass Datacenters. That left QTS as the last party still fighting. The company had filed its appeal to the Virginia Supreme Court on April 30, just hours before the deadline, but has now abandoned it.

“Truth and accountability prevailed today,” said Chap Petersen, the attorney representing local residents and the American Battlefield Trust. The Coalition to Protect Prince William County, which organized much of the opposition, told supporters that the rule of law and the common man had prevailed. Mac Haddow, president of the Oak Valley Homeowners Association, had earlier called the litigation something that never should have happened.

The fight was costly for taxpayers. Prince William County spent close to $2 million defending the rezoning before its board reversed course—a figure opponents repeatedly cited as public money spent against the county’s own residents.

The collapse is more than a local zoning story. It comes as the data center industry faces growing public resistance across the country. Communities from Virginia to the Midwest have pushed back on the strain these facilities place on power grids, water supplies, and electricity bills. In a June report, the U.S. Energy Department projected total U.S. electricity demand would rise about 2.15% in 2026, driven largely by a roughly 5% increase in commercial demand tied to data center growth.

The timing also fuels a broader debate over whether the AI infrastructure boom has run ahead of real demand. This week, reports that Meta Platforms was exploring ways to market excess computing capacity rattled investors already worried about overbuilding. A retreat of this size by a Blackstone subsidiary—on a flagship project it defended for years—does little to quiet those concerns.

For Blackstone, which manages more than $1.27 trillion in assets and has made data centers a centerpiece of its infrastructure and real estate strategy, the loss is a reminder that community opposition has become a meaningful business risk. Land deals, permits, and court challenges can now derail projects that once appeared certain to move forward. Several landowners who had signed agreements with QTS are already seeking to exit their contracts. The company says it remains committed to the region—but for the Digital Gateway, the project is over.

JBizNews Desk | Prince William County, Virginia
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President Donald Trump made 327 individual stock purchases on April 8, 2025, worth as much as $12.8 million, one day before he announced a pause on his sweeping tariffs and sent the market into one of its largest single-day rallies on record, according to his annual financial disclosure filed Monday with the U.S. Office of Government Ethics. The purchases, detailed in an analysis published Thursday, centered on the mega-cap technology stocks that had been hit hardest by his trade plan.

The buying spree focused on some of the world’s largest publicly traded companies. Trump purchased between $100,001 and $250,000 worth of shares in Apple, Alphabet, Amazon, Microsoft, and Nvidia on April 8, alongside investments in scores of other companies, according to the disclosure.

The timing has drawn attention. On April 2, Trump unveiled broad new tariffs he called “Liberation Day” tariffs, triggering a sharp four-day market selloff. Then, on the morning of April 9, he posted on social media that it was a “GREAT TIME TO BUY!!!” before announcing a 90-day pause on most of the tariffs later that day. The S&P 500 surged nearly 10%, one of its strongest single-day performances on record, while many of the technology companies Trump had purchased rebounded sharply.

The financial disclosure spans more than 900 pages and covers Trump’s financial activity throughout 2025. According to the analysis, April 8 ranked as his 11th-busiest trading day of the year—more than five times his average daily buying activity of approximately 62 transactions.

Federal ethics laws require executive branch officials, including the president, to disclose securities transactions exceeding $1,000 within 45 days. However, disclosure forms report transactions in broad dollar ranges rather than exact purchase prices and do not indicate whether the trades were executed personally or through professionally managed investment accounts.

The disclosure comes during another week in which Trump’s public statements coincided with market-moving developments. On Thursday, he posted “Thank you Micron!” on Truth Social after Micron Technology announced a $250 million commitment to support Trump Accounts, the new federal savings program for children. Earlier financial disclosures showed Trump already owned shares of Micron, meaning the company’s stock gains increased the value of his personal holdings.

The White House has consistently maintained that Trump’s assets are held in a trust managed by his children and that appropriate safeguards exist to prevent conflicts of interest.

Nevertheless, the disclosures have renewed debate among ethics experts over presidents owning actively traded securities while making policy decisions capable of moving financial markets.

Craig Holman, a government affairs lobbyist with the watchdog organization Public Citizen, said senior government officials possess unique access to economic information while also holding the power to influence financial markets, creating what he described as opportunities for potential self-enrichment.

Earlier ethics disclosures released in May also showed Trump actively buying and selling shares of major technology companies including Nvidia, Microsoft, Amazon, and Meta Platforms during the first quarter of 2026. Some of those transactions occurred near significant government actions affecting the companies, including an Nvidia purchase roughly one week before the U.S. Commerce Department approved certain AI chip exports to China.

Beyond Trump’s personal investments, the disclosures underscore how closely financial markets have tracked policy decisions throughout his second term. Tariff announcements, trade negotiations, export restrictions and regulatory actions have repeatedly triggered large swings across stock, bond and commodity markets, increasing investor attention on both government policy and executive communications.

For the companies involved, presidential attention can create both opportunities and challenges. Public endorsements may boost investor confidence, while tariffs, export controls and other policy decisions can significantly influence corporate earnings, supply chains and stock prices.

For Wall Street, the latest disclosure adds another layer to an ongoing question that has defined much of Trump’s second term: how investors should value companies and manage risk when government policy—and the individual directing much of it—can move markets in a matter of hours.

JBizNews Desk | Washington, D.C.

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The U.S. Bureau of Labor Statistics (BLS) is scheduled to release its June Consumer Price Index (CPI) on Tuesday, July 14, at 8:30 a.m. Eastern, giving Americans a fresh look at how quickly the cost of everyday goods and services continues to rise. Economists and investors are watching the report closely because it could influence the Federal Reserve’s next decision on interest rates and provide another snapshot of how inflation is affecting households across the country.

The June report follows a stronger-than-expected reading in May, when consumer prices rose 4.2% from a year earlier and 0.5% from the previous month. Rising costs for energy, shelter and food accounted for much of the increase, reinforcing concerns that inflation remains well above the Federal Reserve’s long-term 2% target.

Early forecasts suggest inflation may ease only slightly.

The Federal Reserve Bank of Cleveland’s Inflation Nowcasting Model estimates June’s annual inflation rate could come in at approximately 3.96%, still close to 4% and well above the level policymakers would like to see before considering significant interest-rate reductions.

Although inflation has moderated from its highest levels several years ago, prices remain elevated across many household essentials.

Consumers continue paying more for groceries, electricity, insurance, housing and many everyday services. While gasoline prices have stabilized in recent weeks, higher energy costs earlier this year continue working their way through the economy, affecting transportation, manufacturing and retail prices.

Tariffs on imported goods have also added pressure in several sectors, contributing to higher prices on selected consumer products, electronics and manufactured goods.

The inflation report carries enormous significance because it directly influences monetary policy.

Federal Reserve officials closely monitor CPI data when deciding whether to raise, lower or maintain interest rates. Higher inflation generally encourages the Fed to keep borrowing costs elevated, while evidence of sustained price stability increases the likelihood of future rate cuts designed to support economic growth.

The timing is especially important.

Recent labor market data suggested hiring has slowed, prompting some investors to anticipate eventual interest-rate reductions later this year. However, another stronger-than-expected inflation report could complicate that outlook by encouraging policymakers to remain cautious until inflation shows clearer signs of returning toward target.

The report also affects millions of Americans beyond financial markets.

Inflation influences wage negotiations, retirement planning, Social Security cost-of-living adjustments and the purchasing power of household incomes. When prices continue rising faster than wages, families experience reduced buying power even if paychecks increase.

Economists will pay particular attention to core inflation, which excludes the more volatile food and energy categories. Core CPI often provides a clearer picture of underlying inflation trends because it removes short-term swings caused by weather, commodity prices and geopolitical events.

Housing costs will also remain under close scrutiny.

Shelter expenses continue representing one of the largest contributors to overall inflation, while insurance premiums, healthcare costs and other service-sector prices have remained stubbornly elevated compared with many goods.

For businesses, Tuesday’s report may help shape planning decisions for the remainder of the year.

Companies continue balancing higher labor costs, elevated borrowing expenses and changing consumer demand as they determine pricing strategies, hiring plans and future investment decisions.

For consumers, the report provides another measure of how quickly everyday living costs continue changing. Although inflation has slowed from its historic highs, prices remain significantly above pre-pandemic levels, leaving many families continuing to adjust household budgets.

Financial markets are expected to react quickly once the report is released Tuesday morning, with investors evaluating whether the new data increases or decreases the likelihood of future Federal Reserve action.

Regardless of the final number, the June CPI report will remain one of the most closely watched economic releases of the month because it offers one of the clearest indicators of the nation’s financial health and the direction of interest rates in the months ahead.

JBizNews Desk | Washington

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President Donald Trump reported a $10.71 million licensing fee from Amazon’s film studio in a federal financial disclosure released Tuesday, a filing that put a hard dollar figure on one of the most striking business turnarounds of his second term: his shift from sworn enemy of Jeff Bezos into a close commercial partner.

The payment came from Amazon MGM Studios for “Melania,” the documentary about the first lady that the studio licensed in early 2025. Trump’s disclosure, a mandatory annual filing, listed the fee as part of more than $2.2 billion in total 2025 revenue, roughly double what he reported the year before. Most of that income came from the family’s cryptocurrency ventures, but the Amazon line drew attention because of who signs the checks.

Amazon paid about $40 million to acquire “Melania” and spent a reported $35 million marketing it, unusually large sums for a documentary that took in only $16.6 million at the global box office. Senator Elizabeth Warren called the price “bribery in plain sight.” Bezos rejected that, saying customer demand rather than politics drove the purchase and that it looked like a sound business decision.

The numbers land as a new book details how far the two men have traveled. In “Regime Change,” New York Times correspondents Maggie Haberman and Jonathan Swan recount that in July 2017 Trump asked aides whether the government could break up Amazon, cursed Bezos by name, and vented about The Washington Post, which Bezos owns. Former aide Anthony Scaramucci described the scene.

By this year, the hostility was gone. Haberman and Swan write that at a dinner after the 2024 election, Bezos told Trump the Post was his “worst investment” and complained that its business managers would not listen to him. Trump, who had long refused to believe Bezos could not steer the paper’s coverage, said he eventually came around: he doubted the billionaire in his first term, then believed him.

For Bezos, staying close to the White House is not sentiment. It is protection for his most valuable government business. His rocket company, Blue Origin, depends on federal contracts and competes directly with Elon Musk’s SpaceX. The U.S. Space Force awarded Blue Origin roughly $2.3 billion in national security launch work, and the company holds a $3.4 billion NASA contract to help build a lunar lander for the Artemis moon program. Amazon itself paid Blue Origin about $1.8 billion last year to launch satellites for its Project Kuiper broadband network. Blue Origin flew its heavy New Glenn rocket for the first time in January 2025 but still lags SpaceX, which launches far more often — a gap that makes federal goodwill valuable.

That web of contracts helps explain why Bezos has courted a president who once threatened his companies. After Trump’s feud with Musk erupted in 2025, Bezos spoke with the president directly and Blue Origin executives met with White House Chief of Staff Susie Wiles, pressing for more work. Bezos also donated $1 million through Amazon to Trump’s inauguration and sat in the front row as the president was sworn in.

The shift has been costly at The Washington Post. The paper lost more than $100 million in a single year, and in February 2026 it cut about a third of its staff, closing its sports desk, books coverage and several foreign bureaus. Bezos had already redirected the opinion section to focus on personal liberties and free markets, a change that triggered resignations and mass subscriber cancellations. Publisher Will Lewis stepped down after the layoffs, and finance chief Jeff D’Onofrio was named interim publisher and chief executive.

Bezos has defended the moves as business decisions rather than political ones. Critics, including former Post editor Martin Baron, argue the opposite, saying fear of retaliation against Amazon and Blue Origin pushed Bezos to soften the paper.

For companies watching Washington, the arc carries a plain lesson. A president who once floated using antitrust law to break up the country’s largest online retailer now counts its founder as an ally, and that founder’s studio, rocket firm and satellite network all do business shaped in part by federal decisions. The Amazon fee is a small slice of Trump’s income, but it is a visible marker of how commercial and political interests have merged at the top of American business.

Whether the alliance holds is another question. Trump’s relationships with billionaires have proven changeable, as his public rupture with Musk showed. For now, Bezos remains inside the tent, his contracts intact and his newspaper reshaped.

JBizNews Desk | Washington, D.C.
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New York City’s government moved into full emergency footing this week after the National Weather Service (NWS) warned that heavy rain and thunderstorms would sweep the region from Sunday evening through Monday night, raising the risk of flash flooding across the five boroughs. Mayor Zohran Kwame Mamdani activated the city’s Flash Flood Emergency Plan and, together with New York City Emergency Management (NYCEM), urged residents and workers to prepare for a wet, disrupted start to the week, according to a release from the mayor’s office.

The NWS flagged the Monday morning commute — roughly 4 a.m. to 10 a.m. — as the most dangerous stretch, when the heaviest downpours were expected to collide with rush hour. Forecasters said most of the tri-state area could see 2 to 3 inches of rain, with 4 inches or more possible in spots. Fox meteorologist Mike Woods warned that rain could briefly fall at rates near 3 inches an hour, enough to overwhelm storm drains and turn streets into standing water within minutes.

For a city that runs on its morning rush, the timing was costly. Millions of New Yorkers depend on subways, buses and roads to reach work, and flash flooding regularly disrupts all three at once — stranding commuters, delaying deliveries and forcing shops to open late or not at all. City officials advised people to limit travel, build in extra time and stay off flooded roads.

Mamdani said crews had spent the weekend clearing catch basins, inspecting flood-prone neighborhoods and reaching out to residents in basement apartments, and asked New Yorkers to do their part. “Limit travel if you can, plan for delays and take these warnings seriously,” the mayor said, urging people to head inside at the first sign of thunder or rising winds.

The city staged its response across every borough. The New York Police Department (NYPD) Tow Truck Task Force was positioned in all five boroughs to pull stranded vehicles off flooded roads, while a Downed Tree Task Force stood ready to clear debris from high winds. The Department of Environmental Protection (DEP), Department of Sanitation (DSNY) and Department of Transportation (DOT) worked to clear catch basins in neighborhoods that flood easily. Specialized emergency teams were placed on standby for rapid deployment.

Officials singled out basement and ground-floor apartments as the highest-risk spots, echoing hard lessons from past storms when fast-rising water trapped residents below street level. Outreach teams contacted people in those units to make sure they had a plan. NYCEM Commissioner Christina Farrell said flash flooding can develop quickly and turn dangerous with little warning, and asked residents to prepare ahead of the Monday rush.

The economic stakes go beyond a rough commute. New York’s low-lying areas are packed with small businesses — restaurants, delis, salons and street-level retail — that can lose inventory, equipment and a full day of sales when water pours in. Basement-level storage and mechanical rooms are especially vulnerable, and repeated flooding has pushed up insurance costs and repair bills for landlords and shop owners across the outer boroughs.

The storm also lands during a stretch of extreme weather that has strained the city’s aging drainage system, which was built for a gentler rainfall pattern than the intense, fast-moving downpours now hitting more often. Each major storm renews pressure on City Hall to invest in flood barriers, expanded catch basins and better warning systems — costly projects that compete for limited budget dollars.

Relief, of a sort, is on the way, though it brings its own challenge. Forecasters said the rain should clear after Monday, with temperatures climbing back toward 90 degrees by Friday and a heat advisory likely to follow. That swing from flooding to heat is the kind of back-to-back weather stress that raises energy demand, strains the power grid and adds costs for businesses running air conditioning and refrigeration.

City officials urged New Yorkers to sign up for Notify NYC emergency alerts by texting NYC to 692-692 and to check real-time conditions before heading out. For businesses, the advice was simpler: plan for a slow, wet Monday, protect ground-level inventory, and give workers and customers room to arrive late.

JBizNews Desk

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Satellite television provider Dish DBS filed for Chapter 11 bankruptcy protection on Tuesday, its parent company EchoStar Corporation announced, after a delayed $23 billion sale of wireless airwaves to AT&T left the company unable to pay off bonds that were coming due.

The filing was made in the U.S. Bankruptcy Court for the Southern District of Texas, in Houston. In a statement, EchoStar said the move was a prepackaged restructuring — a bankruptcy planned in advance with creditors — backed by holders of more than 88% of Dish DBS bonds. The company said the goal is to restructure its debt quickly and exit court protection before the end of the third quarter of 2026.

At the center of the trouble is a $2 billion block of 7.75% senior secured notes that matured on July 1. Dish DBS could not repay them because the money it was counting on — proceeds from selling wireless spectrum to AT&T — has not arrived. EchoStar agreed last year to sell nationwide 3.45 GHz and 600 MHz spectrum licenses to AT&T for about $23 billion, but the deal has been held up by what the company called unforeseen delays as it awaits regulatory approval.

Charlie Ergen, the chairman and chief executive who co-founded EchoStar and recently returned to lead it through the crisis, framed the filing as a step forward rather than a collapse. He said the company has been “at the forefront of telecommunications for over 45 years” and that the moves would position the business for a stronger future. He added that EchoStar is operating as usual throughout the process.

Importantly, the bankruptcy is limited to the Dish DBS and Dish Wireless corporate entities. EchoStar said its consumer brands — Dish TV, Sling TV, Boost Mobile, Gen Mobile and Hughes — are not part of the filing and will keep operating normally, with no changes to service, employees or vendor payments. Customers, in other words, should see nothing different.

The company that is filing has been under pressure for years. EchoStar, which merged with Dish in 2024, has been struggling to manage roughly $25 billion in debt. Its pay-TV business is shrinking fast: Dish now has about 5 million satellite subscribers and Sling TV about 2 million, down sharply from its peak. In the first three months of 2026 alone, the company lost roughly 177,000 net subscribers, and pay-TV revenue fell more than $260 million from a year earlier, to $2.26 billion.

The bankruptcy also marks a retreat from Dish’s expensive bet on wireless. The restructuring is expected to help wind down Dish Wireless’s facilities-based 5G network — the network the company built to become a fourth national wireless carrier alongside AT&T, Verizon and T-Mobile. That ambition, once encouraged by federal regulators to boost competition, has now given way to selling the underlying airwaves to a rival.

For AT&T, the stalled deal is a complication but also an opportunity. Acquiring EchoStar’s spectrum would give the carrier a large block of valuable airwaves to expand its network, and the delay appears tied to regulatory review rather than a collapse of the agreement. Once the sale closes, EchoStar says it will use the proceeds to repay most of its debt, which would clear the path out of bankruptcy.

The case is being handled by law firm White & Case, with Houston partner Charles Koster leading, while FTI Consulting serves as financial advisor. EchoStar shares, which trade on the Nasdaq under the ticker ECHO, rose 0.4% in after-hours trading following the news — a sign investors viewed the prepackaged filing as an orderly cleanup rather than a surprise.

The filing closes a difficult chapter for Ergen, who spent years trying to reinvent Dish from a fading satellite-TV operator into a wireless player. An earlier attempt to merge with rival DirecTV fell apart, leaving the spectrum sale to AT&T as the company’s main route to raising cash. With that deal delayed and a major bond payment due, bankruptcy became the tool to buy time. If the AT&T transaction finally closes, EchoStar could emerge in the third quarter with far less debt — and a business built around wireless airwaves and streaming rather than the satellite dishes that made it famous.

JBizNews Desk | Houston
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America’s southern border is becoming one of the federal government’s biggest construction and technology projects, creating billions of dollars in new business for defense contractors, surveillance companies, and infrastructure builders.

According to U.S. Customs and Border Protection (CBP), the agency is rapidly expanding what officials describe as a “smart wall” along the U.S.-Mexico border using money from a $46 billion border security fund approved by Congress last year.

The funding, included in the sweeping 2025 tax-and-spending law, has turned border security into one of the fastest-growing areas of federal contracting.

CBP Commissioner Rodney Scott said the agency is currently completing approximately six miles of new border barrier each week, while Homeland Security Secretary Markwayne Mullin said the first major phase of the new system is expected to be completed around this time next year.

Unlike earlier border barriers, the new system combines 30-foot steel fencing with advanced surveillance technology, including artificial intelligence, radar, motion sensors, high-resolution cameras, and autonomous surveillance towers capable of monitoring vast stretches of the border without requiring agents on site.

As of mid-June, CBP reported completing another 74 miles of border barrier since President Donald Trump returned to office. During congressional testimony earlier this year, Commissioner Scott said the agency expects to complete approximately 250 miles of new barriers by the end of September.

For private industry, the project represents a multibillion-dollar opportunity.

Among the biggest beneficiaries is Anduril Industries, the defense technology company founded by Palmer Luckey.

Its AI-powered autonomous surveillance towers have become a centerpiece of the new border strategy. Equipped with cameras, sensors, and artificial intelligence capable of distinguishing between people, animals, and vehicles, the towers operate around the clock using solar power.

The 2025 legislation directs CBP to deploy autonomous surveillance towers throughout the border system, with another 95 towers already scheduled for installation.

Being designated as a formal government “program of record” provides Anduril with a long-term stream of federal business while strengthening its position across the defense industry.

Several other companies are also securing major contracts.

Elbit Systems of America, the U.S. subsidiary of the Israeli defense company, continues supplying surveillance equipment, while technology firm Sintela is installing underground fiber-optic sensing networks capable of detecting movement beneath the surface and feeding real-time information into artificial intelligence systems.

According to Sintela CEO Magnus McEwen-King, the company’s technology can follow terrain across forests, mountains, and riverbanks while providing continuous monitoring over large geographic areas.

The spending extends well beyond technology.

Building roughly six miles of fencing every week creates steady demand for steel, heavy construction equipment, engineering firms, skilled labor, transportation providers, and maintenance contractors. CBP is also expanding hiring efforts to support the growing border infrastructure.

In Texas, contractors are additionally installing large floating barriers in portions of the Rio Grande, creating another market for specialized marine barrier manufacturers.

The construction boom comes as illegal border crossings have fallen to their lowest levels in decades following broader immigration enforcement policies implemented by the Trump administration.

Supporters argue the decline provides an opportunity to permanently strengthen border security infrastructure, while critics question whether taxpayers are receiving sufficient value from such a large investment.

Josh Sewell, Director of Research and Policy at the nonpartisan watchdog Taxpayers for Common Sense, has called for stronger oversight before additional billions are committed, pointing to previous government border technology projects that ran significantly over budget.

Meanwhile, local advocacy groups continue expressing concerns about increased surveillance and environmental impacts in sensitive border regions, including parts of Big Bend National Park.

For businesses, however, the outlook remains clear.

With billions of dollars already appropriated and major contracts continuing to be awarded, the federal government’s smart wall initiative is becoming a long-term source of revenue for defense technology companies, construction firms, engineering contractors, surveillance manufacturers, and suppliers across multiple industries.

As work accelerates, the project is evolving into one of the largest infrastructure and technology investments currently underway anywhere in the United States.

JBizNews Desk | Washington

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American families are refusing to abandon their summer vacations, but they are aggressively cutting how much they spend to make the trips happen, according to a survey conducted by YouGov and fielded between June 16 and June 21, 2026. The poll of 783 U.S. parents of children under 18 found that 63% already had a family trip planned for the season, while only 27% said they would not travel at all — even as the cost of a getaway climbed sharply.

The pressure on household budgets is easy to see. Airfare in May ran 27% higher than a year earlier, according to inflation data from the U.S. Bureau of Labor Statistics. Hotel rates and attraction prices have also risen. Yet rather than cancel, most families are making smaller compromises to protect the trip itself.

The most common money-saving move was choosing a closer or cheaper destination, cited by 25% of parents with summer plans. Only 6% canceled a vacation outright, and another 5% switched to a different spot. More than one in five families — 21% — said they were using airline miles or hotel points to help cover the cost. Nearly two-thirds ranked overall price among their three biggest factors when picking where to go.

Spending levels showed how families are budgeting. About half of those traveling expected to spend between $1,000 and $5,000, while 13% planned to spend $5,000 to $10,000, and just 4% expected to top $10,000. The pattern points to households stretching dollars rather than splurging.

Other recent surveys tell the same story. A poll of 5,000 Americans conducted by Talker Research for the fintech firm Current found that 37% would not travel at all this summer, with most of that group saying they simply could not afford a trip. That survey pointed to the rise of “staycations,” “quietcations” and “micro-breaks” as budget-friendly substitutes. Erin Bruehl, vice president of communications at Current, said the trends reflect how practical Americans have become with their money, adding that instead of giving up on travel, people are being smarter about it.

Consulting firm PwC, in its summer spending poll, found that 71% of U.S. adults planned to spend the same or more on summer travel than last year, suggesting demand remains sturdy at the top of the market even as lower-income families pull back. A separate report from NerdWallet, conducted by The Harris Poll, put average summer travel spending on flights and lodging at $3,940 per traveler and estimated that more than 120 million Americans would spend over $475 billion on those costs.

How families are paying is its own economic signal. The NerdWallet survey found that 84% of summer travelers would use credit cards for at least some costs, and while most planned to pay the balance quickly, nearly a quarter said they would carry it. About 17% said they would lean on buy now, pay later services to fund the trip, a sign that some households are borrowing to preserve a summer tradition.

For the travel industry, the numbers cut two ways. Airlines, hotels and theme-park operators are still filling seats, rooms and gates, but a growing share of their customers are trading down — driving less far, staying fewer nights, and choosing value destinations over marquee ones. That behavior supports revenue while squeezing the premium spending that resorts and airlines count on.

The shift is also reshaping where the money lands. Regional attractions, drive-to beach towns, state parks and mid-priced hotels stand to gain as families skip expensive flights. Gas stations, roadside restaurants and campgrounds benefit from the move toward road trips. Meanwhile, credit card issuers and buy now, pay later lenders are capturing a larger slice of vacation spending as families finance trips they will not postpone.

The broader takeaway for the consumer economy is resilience with a catch. Families are treating summer travel as close to essential, refusing to cancel even when prices bite. But they are funding it through points, debt, shorter trips and cheaper destinations — a pattern that keeps travel demand alive while quietly shifting billions of dollars toward the lower-cost corners of the market.

JBizNews Desk | Washington
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SpaceX is preparing to take on some of the biggest names in American telecommunications, signaling that its Starlink satellite business may soon compete directly with AT&T, Verizon, and T-Mobile in what has become one of the company’s boldest expansion plans to date.

The strategy was outlined by SpaceX President Gwynne Shotwell during the company’s late-June initial public offering roadshow, where she told investors that Starlink intends to move beyond providing satellite internet service and become a direct competitor in the U.S. wireless market. The comments, first reported by the Financial Times, represent the clearest indication yet that SpaceX plans to challenge a communications industry valued at roughly $1.6 trillion.  

The announcement comes only weeks after SpaceX’s blockbuster public debut.

The company began trading on the Nasdaq on June 12 under the ticker SPCX, raising nearly $86 billion and reaching a valuation exceeding $2 trillion, making it one of the largest initial public offerings ever completed. Much of that value is tied to Starlink, which has rapidly evolved into the company’s largest revenue generator.

According to figures presented during the roadshow, Starlink generated approximately $11.4 billion of SpaceX’s $18.7 billion in total 2025 revenue. As of March 31, the satellite internet service counted 10.3 million active subscribers across more than 160 countries, reflecting its rapid global expansion over the past several years.  

Until now, Starlink’s primary business has focused on providing high-speed internet service to homes, businesses and remote locations where traditional broadband is unavailable or unreliable. The company has also worked behind the scenes with established wireless carriers, including supporting T-Mobile’s satellite messaging service designed to provide connectivity in areas without cellular coverage.

That approach could soon change dramatically.

Rather than serving as a technology partner, SpaceX now appears ready to market wireless service directly to consumers, placing it in direct competition with carriers that each serve well over 100 million subscribers nationwide.  

A major piece of that strategy fell into place earlier this year.

In May, the Federal Communications Commission approved SpaceX’s acquisition of approximately 65 megahertz of nationwide mid-band wireless spectrum from EchoStar. Owning licensed spectrum is considered essential for operating an independent mobile network and gives SpaceX a foundation it previously lacked.

Even so, industry analysts caution that the approval is only one step in a much longer process. The licenses are not expected to fully transfer until late 2027, and SpaceX’s spectrum holdings remain significantly smaller than those controlled by the nation’s three largest wireless providers. Analysts also note that competing in densely populated urban markets will still require extensive ground infrastructure that SpaceX has yet to build.  

Wall Street remains divided over how disruptive Starlink could ultimately become.

Some analysts see the company fundamentally reshaping the communications industry.

Oppenheimer analysts have argued that SpaceX has the potential to disrupt the broader $1.6 trillion communications market, projecting Starlink could eventually reach 15 million U.S. subscribers by 2030.

Others remain more cautious.

David Barden of New Street Research said SpaceX currently lacks sufficient spectrum to operate a fully competitive nationwide mobile network on its own. He also pointed to the continuing technical challenges of delivering reliable high-capacity service in major metropolitan areas, where conventional cellular networks still possess significant advantages.

Recent usage data supports some of that skepticism. T-Mobile Chief Executive Srini Gopalan recently said satellite traffic currently represents only an extremely small portion of activity on the company’s network, with usage concentrated primarily in national parks and other remote areas beyond traditional cell coverage.  

The competitive threat has already prompted an unusual response from the wireless industry.

In May, AT&T, Verizon, and T-Mobile reached an agreement in principle to create a joint venture that would combine spectrum resources to expand satellite-to-phone services. Analysts viewed the timing of the announcement—coming just weeks before the SpaceX roadshow—as evidence that the nation’s largest carriers view Starlink as a credible long-term competitor rather than simply a niche provider serving rural customers.

The competition may not stop there.

Amazon is also developing its own direct-to-device satellite communications service through its low-Earth orbit satellite network, creating another potential challenger for traditional wireless companies in the years ahead.  

For consumers, satellite-based mobile technology could eventually expand wireless coverage into rural communities and other underserved areas where building conventional cellular towers has long been expensive or impractical.

Industry experts caution, however, that satellite systems still cannot match the capacity and speed of traditional ground-based cellular networks in densely populated cities. As a result, satellite connectivity is expected to complement existing networks for the foreseeable future rather than replace them entirely.  

What distinguishes SpaceX from many previous telecommunications challengers is the company’s ability to control nearly every part of its operation.

SpaceX designs and builds its own satellites, launches them aboard its own rockets and now possesses licensed wireless spectrum that could support a future nationwide mobile network. That level of vertical integration gives the company advantages that previous competitors lacked and could allow it to expand more rapidly if it decides to pursue consumers directly.  

Whether Starlink ultimately becomes a full-scale wireless carrier remains uncertain, but one message from the company’s leadership is already clear: SpaceX intends to play a much larger role in the future of mobile communications, and the nation’s largest telecom companies are preparing accordingly.

JBizNews Desk | Hawthorne, California

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Families planning to celebrate Independence Day this weekend will likely notice a familiar trend at the grocery store: the traditional backyard cookout is more expensive than ever.

According to the American Farm Bureau Federation’s 2026 Summer Cookout Cost Survey, released Thursday, the average cost of a classic Fourth of July meal for 10 people has climbed to a record $73.82, an increase of 4%, or $2.90, compared with last year. The survey, which has tracked holiday food prices since 2016, puts this year’s average meal at about $7.38 per person, making it the highest Fourth of July cookout cost since the organization began conducting the annual survey.  

The biggest reason for the increase is beef.

The survey found that two pounds of ground beef now cost an average of $14.06, up 73 cents, or 5.5%, from a year ago. It is the highest beef price recorded since the Farm Bureau began measuring the annual holiday basket.

Faith Parum, an economist with the American Farm Bureau Federation, said ranchers are still rebuilding the nation’s cattle herd following years of drought and rising production expenses. Smaller cattle supplies have kept beef prices elevated, making hamburgers—one of the centerpieces of many Fourth of July celebrations—the largest contributor to this year’s higher grocery bill.  

Other cookout favorites also became more expensive.

Chicken breasts increased 3.5% to $8.06 for two pounds, while three pounds of pork chops climbed 4.7% to $14.79. Fresh strawberries posted one of the largest jumps, rising 12.4% to $5.27 for two pints. The Farm Bureau attributed that increase in part to frost damage in Florida earlier this year, along with higher labor, fuel and transportation costs.

Pork and beans recorded the largest percentage increase among all items surveyed, rising 13.8% to $3.06. Not every grocery item moved higher, however. Ingredients used to make homemade potato salad fell 17.8% to $2.91, helped largely by lower egg prices after last year’s avian influenza-related spike eased. Potato chips also slipped slightly in price.  

Retailers are already seeing consumers adjust to the higher prices.

Stew Leonard, president and chief executive of the grocery chain Stew Leonard’s, said customers are increasingly choosing less expensive cuts of meat and swapping premium proteins for more affordable options as beef prices continue climbing. Families are also preparing more side dishes from scratch and simplifying beverage purchases to keep overall holiday spending under control.

Those changing shopping habits are also influencing what supermarkets are stocking and promoting heading into one of the busiest grocery weekends of the year.  

While shoppers are paying more at the checkout counter, the Farm Bureau noted that the increase looks somewhat different when adjusted for inflation.

Overall U.S. inflation measured 4.2% during the 12 months ending in May, meaning the 4% increase in the cookout basket generally tracked with broader consumer price increases. When calculated using inflation-adjusted dollars, the Farm Bureau estimated this year’s cookout costs roughly $22.03 in 1982-84 purchasing power—virtually unchanged from $22.06 a year ago and still below the inflation-adjusted peak reached in 2022.

In other words, consumers are spending more actual dollars, but the purchasing power required to buy the traditional meal has changed very little over the past year.  

Location also plays a significant role in what families pay.

The Western United States recorded the highest average cookout cost at approximately $80 for 10 people, more than $6 above the national average. Western shoppers paid the most for several key items, including ground beef, chicken, hamburger buns and cheese.

The Northeast remained the least expensive region, with an average cost of $71.35, followed closely by the Midwest at $71.45 and the South at $72.08.  

Another estimate suggests some families may spend considerably more depending on their menu.

The Wells Fargo Agri-Food Institute, using a broader basket that includes additional foods and beverages, estimated that a more complete backyard barbecue for 10 people could cost approximately $161, or about $16 per guest.  

The survey arrives as Americans continue balancing household budgets amid concerns about the broader economy. Questions surrounding consumer spending have grown following a weaker June jobs report and a shrinking labor force, while grocery inflation continues to remain elevated.

The Farm Bureau also pushed back against the common perception that higher grocery prices automatically translate into larger profits for farmers. According to the organization, after accounting for production expenses, farmers receive less than six cents of every food dollar, with the overwhelming majority covering processing, packaging, transportation and retail costs before food reaches consumers.  

For millions of Americans preparing to gather with family and friends this Fourth of July, the tradition remains unchanged. What has changed is the price of filling the grill, as beef costs continue driving holiday grocery bills to their highest level on record.

JBizNews Desk | Washington, D.C.

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Currys Chief Executive Alex Baldock warned Thursday that supplies of fans and portable air conditioners are becoming “tight” ahead of another forecast heatwave in the United Kingdom, after a surge in demand during recent record temperatures emptied shelves across much of the country.

Speaking alongside the electronics retailer’s annual financial results, Baldock said cooling products had been “flying off the shelves” and that the company was working aggressively to replenish inventory before another period of unusually hot weather expected next week.

The demand surge has been extraordinary.

Currys reported that sales of electric fans increased nearly 3,000% during the most recent heatwave weekend compared with the previous week, while portable air-conditioner sales jumped approximately 330%. The company said its nationwide buying power has allowed it to secure more inventory than many competitors, although supplies remain under pressure as temperatures continue climbing.

Currys operates approximately 691 stores across the United Kingdom and the Nordic region, making it one of Europe’s largest consumer electronics retailers.

The comments came as the company reported stronger financial results for the year ended May 2.

Annual revenue increased 6% to £9.2 billion, while pre-tax profit climbed 23% to £153 million. Comparable sales at established UK stores rose 3%, outperforming many competitors in a retail environment that has remained challenging for discretionary spending.

Company executives credited growth across several categories, including coffee machines, artificial intelligence-enabled laptops, repair services, installation services and business sales.

The annual results also mark Baldock’s final earnings report before leaving Currys later this year to become Chief Executive of Boots, one of Britain’s largest pharmacy and health-and-beauty retailers.

The cooling-equipment shortage reflects a broader shift in consumer behavior across Britain.

For decades, air conditioning remained relatively uncommon in British homes because summers were generally mild. However, repeated periods of record-breaking heat have transformed cooling equipment from an occasional purchase into a mainstream household necessity.

Retailers throughout the UK have reported customers lining up to purchase portable air conditioners and fans whenever temperatures spike, creating supply shortages that manufacturers often struggle to replenish quickly.

Industry analysts say climate change is gradually reshaping seasonal retail demand, turning cooling products into an increasingly important sales category that can produce dramatic revenue swings within days.

Baldock also highlighted broader cost pressures facing retailers.

He warned that inflation remains a concern, pointing to continued global demand for semiconductor chips driven partly by artificial intelligence data-center construction. Although Currys said it has secured supplies of computers and mobile phones through at least September, the company expects supply-chain pressures to remain an ongoing challenge.

The chief executive also renewed calls for government reforms involving business rates and tax treatment for low-value imported goods sold through overseas online marketplaces, arguing that domestic retailers continue facing an uneven competitive environment.

For consumers, Baldock offered simple advice: shoppers needing fans or portable air conditioners should not wait until temperatures peak.

With inventories already tightening before the next forecast heatwave arrives, delaying purchases could leave consumers facing fewer choices—or empty shelves—as demand accelerates once temperatures begin rising again.

JBizNews Desk | London

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Target will replace the Ulta Beauty shops inside more than 600 of its stores with a new in-house concept called Target Beauty Studio, launching this fall, the retailer’s Chief Merchandising Officer Cara Sylvester said this week. The move ends a five-year shop-in-shop partnership that expires in August 2026 and marks one of Target’s biggest beauty strategy changes in years.

The Ulta Beauty at Target partnership launched in 2021, giving shoppers access to a curated selection of prestige beauty brands inside Target stores while allowing Ulta to expand its reach without opening standalone locations. Last August, both companies announced they had mutually agreed not to renew the partnership when it expires this summer.

Customers will still be able to shop Ulta Beauty locations inside Target stores through August. Those who have linked their Ulta Beauty Rewards and Target Circle accounts will continue earning rewards on eligible purchases until the partnership officially ends.

Rather than replacing Ulta with another retailer, Target is investing heavily in its own beauty business.

The new Target Beauty Studio will feature more than 80 prestige, global and emerging beauty brands, including approximately 60 brands that have never before been available at Target. The retailer also plans to introduce exclusive product launches available only through Target while expanding beauty-focused Target Circle offers and testing new staffing models designed to improve customer service.

Executives say the goal is to transform beauty into a destination category inside Target stores, creating a shopping experience that encourages discovery while making prestige beauty products more accessible to mainstream consumers.

The move reflects beauty’s growing importance to Target’s business.

While discretionary spending has slowed across many retail categories, beauty products have remained comparatively resilient, with shoppers continuing to spend on skincare, cosmetics, fragrances and personal care even as they reduce purchases elsewhere. Industry analysts have repeatedly identified beauty as one of retail’s strongest-performing categories over the past several years.

The strategy also changes the competitive landscape.

For Ulta Beauty, the partnership helped expand brand awareness and reach millions of Target shoppers. For Target, ending the agreement means transforming a former partner into a direct competitor.

Ashley Helgans, retail analyst at Jefferies, said the transition increases the likelihood that Target becomes a stronger competitor to Ulta as it expands its own prestige assortment and introduces exclusive products.

The announcement also comes during a period of leadership change at Target.

The company is now led by Chief Executive Officer Michael Fiddelke, making the beauty initiative one of the first highly visible merchandising strategies under the retailer’s new leadership. Analysts have suggested improving the in-store shopping experience will be critical as Target works to reverse softer customer traffic while competing more aggressively with both specialty beauty retailers and online marketplaces.

Retail analyst David Bellinger of Mizuho Securities previously wrote that Target’s execution challenges—including staffing levels and in-store operations—likely contributed to the companies’ decision not to extend the Ulta partnership. The success of Target Beauty Studio will therefore serve as an early test of whether Target can independently deliver a premium beauty experience.

Competition within prestige beauty has become increasingly intense.

Alongside Ulta’s standalone stores, Sephora continues expanding through its partnership with Kohl’s, while department stores, specialty retailers and online beauty companies continue investing heavily in premium cosmetics and skincare. Winning customer loyalty increasingly depends on exclusive products, knowledgeable staff and personalized shopping experiences rather than simply carrying well-known brands.

For shoppers, the transition means one final opportunity to visit the existing Ulta Beauty shops before they disappear in August. Beginning this fall, customers will instead find Target Beauty Studio locations offering a broader selection of brands, dozens of new products and a shopping experience designed entirely by Target.

Whether that strategy keeps existing customers—or persuades new ones to choose Target over Ulta, Sephora and other beauty retailers—will become one of the retail industry’s most closely watched merchandising experiments over the coming year.

JBizNews Desk | Minneapolis, Minnesota

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The National Highway Traffic Safety Administration (NHTSA) has closed its four-year investigation into reports of unexpected braking in Tesla vehicles, concluding there was no demonstrated pattern of crashes or significant safety risk that would justify a recall. The decision ends one of the agency’s longest-running reviews of Tesla’s driver-assistance technology and removes another regulatory overhang for the electric-vehicle maker as it continues expanding its software-driven autonomous driving capabilities.

The investigation, formally known as Preliminary Evaluation PE22002, covered approximately 695,000 Tesla Model 3 and Model Y vehicles from the 2021 and 2022 model years. It was launched in February 2022 after hundreds of owners reported sudden, unexplained braking while using Autopilot, Full Self-Driving, or Traffic-Aware Cruise Control, a phenomenon that became widely known as “phantom braking.”

Drivers reported vehicles unexpectedly slowing by 10 to 20 miles per hour over one to three seconds, often while traveling at highway speeds and with no visible obstacle ahead. Many owners said the sudden deceleration startled surrounding motorists and created the potential for rear-end collisions.

Consumer complaints rose rapidly during the investigation. NHTSA had received 99 reports by the end of 2021, a figure that climbed to 314 complaints by the time regulators formally opened the probe in early 2022.

After reviewing years of field data, software updates and customer reports, NHTSA concluded that the braking events presented only a low demonstrated safety risk. The agency said it found no crashes, injuries or fatalities directly linked to the reported incidents throughout the investigation.

One of the agency’s most significant findings was the dramatic decline in complaints following Tesla’s software updates.

According to NHTSA, reported phantom-braking incidents fell from their 2022 peak to just 45 complaints during 2024, 19 complaints in 2025, and only three reports during the first half of 2026. Regulators said the trend closely followed a series of over-the-air software updates Tesla released beginning in 2022 to improve how its driver-assistance systems interpret surrounding traffic conditions.

Unlike traditional automakers that often require dealership visits for repairs, Tesla routinely distributes software improvements remotely to vehicles already on the road. Regulators noted that approach appeared to significantly reduce the frequency of reported braking events without requiring a physical recall.

NHTSA also examined the technology behind the issue.

Investigators found the complaints coincided with Tesla’s 2021 transition from radar-and-camera sensor fusion to a camera-only “Tesla Vision” system. By eliminating forward radar and relying entirely on cameras and artificial intelligence, Tesla adopted an approach that differs from many competing autonomous-driving developers.

According to the agency, the vision-only system occasionally misinterpreted certain driving situations, resulting in unnecessary braking events. Although NHTSA stopped short of declaring the design defective, its report represents one of the clearest acknowledgments by a federal regulator that Tesla’s transition away from radar played a role in the complaint pattern.

The broader debate over autonomous driving technology continues throughout the automotive industry.

While Tesla argues that cameras combined with advanced artificial intelligence ultimately provide safer and more scalable autonomous driving than radar-based systems, several competitors continue relying on combinations of cameras, radar and lidar sensors to create redundant safety layers.

The closure of the phantom-braking investigation does not end Tesla’s regulatory scrutiny.

NHTSA emphasized that closing a preliminary evaluation does not mean a safety defect never existed and retains the authority to reopen the investigation if future evidence warrants additional action. Tesla also continues facing legal challenges outside the United States, including a 2025 class-action lawsuit in Australia involving similar phantom-braking allegations.

The decision follows several other recent regulatory developments involving Tesla. NHTSA recently closed its investigation into power-steering failures affecting approximately 376,000 Model 3 and Model Y vehicles after Tesla addressed the issue through a software update. Regulators have also concluded a separate review involving roughly 2.5 million vehicles equipped with Tesla’s remote vehicle movement feature.

Other investigations remain ongoing, including NHTSA’s special crash investigation into a Tesla Model 3 that struck a home in Katy, Texas, while operating with advanced driver-assistance technology.

For Tesla, the closure of the phantom-braking investigation removes another potential legal and financial risk as the company continues expanding autonomous driving features across its vehicle lineup. Coming on the same day Tesla reported stronger-than-expected quarterly deliveries, the regulatory decision provides another measure of reassurance for investors as the company pushes further toward a software-centered future.

JBizNews Desk | Washington, D.C.

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Defense Secretary Pete Hegseth built a plan last month to pull more American troops out of Europe, then dropped it before announcing it. The Pentagon’s chief spokesman, Sean Parnell, said Thursday that Hegseth made sure his message lined up with President Donald Trump‘s goals and did not want to crowd the president’s room to decide.

Hegseth had been planning to fly to Brussels in June to tell NATO’s top military chiefs that the United States was readying fresh troop cuts on the continent, according to people familiar with the matter cited by the Wall Street Journal. The cuts would have gone beyond two moves already made this year: the canceled deployment of an armored brigade to Poland and the earlier withdrawal of an infantry brigade from Romania.

That plan was scrapped after Hegseth shared it with Secretary of State Marco Rubio, who also serves as Trump’s national security adviser, and other senior officials. Instead of the bombshell, Hegseth used his June 18 speech in Brussels to announce a review of American forces in Europe that could take up to six months.

The episode shows the Trump administration has not settled on how fast or how deep it wants to cut in Europe. There are roughly 80,000 U.S. troops on the continent now.

The back-and-forth is familiar. In May, the Pentagon said it would withdraw about 5,000 troops from Germany after German Chancellor Friedrich Merz criticized Trump’s handling of the war with Iran. Weeks later, Hegseth canceled an armored brigade’s rotation to Poland — a move that caught even Trump off guard. Trump then reversed it on Truth Social, saying he would send 5,000 troops to Poland instead, citing his ties to Polish President Karol Nawrocki.

Congress has tried to slow the cuts. Under the 2026 defense budget law, the Pentagon cannot keep troop levels in Europe below 76,000 for more than 45 days without first notifying and certifying its plans to lawmakers. Republican and Democratic members of the armed services committees have complained they were not consulted on the earlier moves.

The direction, though, is set. A Pentagon defense strategy issued in January said the United States would trim its presence in Europe to focus more on the western Pacific and the Western Hemisphere, with the goal of handing European nations the main job of defending their own continent. On Thursday, Trump wrote on social media that the U.S. spends more on NATO than any other country and gets no benefit from it.

Troop levels and allied spending will be front and center next week when Trump meets NATO leaders in Ankara, Turkey. Alliance officials are hoping the summit shows unity and support for Ukraine, but they fear friction with Trump will steal the spotlight. Officials are also weighing whether to scrap a planned 2027 summit in Albania, according to Reuters.

For business, the story is about who pays and who builds. NATO members agreed in June 2025 to lift defense spending toward 5% of GDP by 2035, a huge jump from the old 2% target. Consulting firm McKinsey estimates European core defense spending could reach about €800 billion—roughly $912 billion—by 2030.

That money is lifting Europe’s arms makers. Shares of Germany’s Rheinmetall, Britain’s BAE Systems, Italy’s Leonardo, France’s Thales, and Sweden’s Saab have climbed sharply since Russia invaded Ukraine in 2022, driven by growing order books. The Stoxx Europe Aerospace & Defence index cooled somewhat this year as investors questioned whether prices had run too far ahead of actual deliveries.

There is a catch for American firms. Much of Europe’s new spending is being steered toward European factories. Under the European Union’s SAFE loan program, the bloc wants 55% of weapons purchases coming from European or Ukrainian makers by 2030. That threatens to shut out U.S. contractors that have long dominated European sales, even as Washington pushes allies to spend more.

At home, Hegseth has said the United States will invest $1.5 trillion in defense in its 2027 budget. But the uncertainty over troop levels—plans floated, then pulled—has unsettled allies and some leading Republicans, who worry the stop-and-start approach will damage the alliance and encourage Russia.

For now, the pace of any pullback is on hold pending the six-month review. The Ankara summit will offer the next signal of where Trump wants it to go.

JBizNews Desk | Washington

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The Federal Aviation Administration (FAA) is preparing to require most aircraft flying in U.S. civilian airspace to carry technology that allows pilots to see nearby aircraft in real time, according to reporting this week. The proposed rule follows the January 2025 midair collision near Ronald Reagan Washington National Airport that killed 67 people and is intended to reduce the risk of similar accidents by giving flight crews an additional layer of situational awareness.

FAA Administrator Bryan Bedford has directed agency officials to draft the proposal, according to people familiar with the effort, although the agency emphasized that no final decision has yet been made. If adopted, the mandate would represent one of the most significant cockpit safety upgrades for commercial and general aviation since the FAA required aircraft to broadcast their locations using ADS-B Out technology.

At the center of the proposal is ADS-B In (Automatic Dependent Surveillance-Broadcast In), a cockpit system that allows pilots to receive the positions of nearby aircraft on an electronic display while also providing audible traffic alerts. Unlike ADS-B Out, which transmits an aircraft’s location to air traffic controllers and other aircraft, ADS-B In gives pilots a direct view of surrounding traffic, allowing them to identify potential conflicts even before receiving instructions from controllers.

The National Transportation Safety Board (NTSB) has recommended broader adoption of ADS-B In for nearly two decades. Following its investigation into January’s fatal collision over the Potomac River, the board renewed that recommendation, concluding the technology could provide pilots with valuable additional warning during rapidly developing situations.

The January 29 accident involved a regional jet operating as an American Airlines flight and a U.S. Army Black Hawk helicopter. According to the NTSB’s preliminary findings, the helicopter was neither broadcasting its position through ADS-B Out nor equipped with ADS-B In. While the regional jet was transmitting its location, it lacked the ability to receive traffic information from surrounding aircraft. Investigators estimated that if the airliner had been equipped with ADS-B In, its pilots may have had approximately one minute to identify the approaching helicopter rather than only 19 seconds before impact.

Congress has debated legislation addressing the issue since the crash but has yet to produce a unified solution. The House approved the ALERT Act, while the Senate advanced separate legislation known as the ROTOR Act. The two proposals differ on implementation timelines and which aircraft would ultimately be required to install the technology.

Rather than waiting for Congress to reconcile the legislation, the FAA appears prepared to move forward through its own regulatory authority. Officials have reportedly discussed shortening or bypassing portions of the traditional federal rulemaking process because of the safety implications.

The proposal carries significant financial implications for the aviation industry.

For major commercial airlines, upgrading existing avionics to support ADS-B In is expected to be relatively modest because most fleets already carry modern ADS-B Out equipment. The greater challenge falls on the nation’s general aviation community.

Industry estimates suggest retrofitting older privately owned aircraft could cost anywhere from approximately $10,000 to $50,000 per aircraft, depending on the equipment installed. Some aircraft owners may determine those costs exceed the value of older airplanes, potentially leading to early retirements rather than upgrades.

The United States has more than 30,000 aircraft potentially requiring retrofits but only a few hundred certified repair stations capable of performing the installations. Aviation groups have also warned of a shortage of qualified aircraft mechanics, noting the median age of FAA-certified mechanics now stands at approximately 54 years, raising concerns about whether enough skilled technicians will be available if thousands of aircraft require upgrades simultaneously.

While aircraft owners could face higher costs, avionics manufacturers may benefit substantially.

Companies including Garmin and Honeywell are expected to see increased demand for cockpit display systems, surveillance equipment and installation services if the mandate is approved. Airlines may also accelerate fleet modernization plans, while business aircraft operators could increasingly favor newer aircraft already equipped with advanced avionics.

The proposal reflects a broader international trend toward enhanced aircraft surveillance and collision-avoidance technologies. Aviation regulators worldwide continue evaluating additional safety measures as global air traffic returns to record levels following the pandemic.

The effort has also highlighted differences between aviation regulators. Administrator Bedford previously suggested the FAA would avoid imposing a mandate without congressional approval, citing compatibility issues involving hundreds of commercial aircraft and proposing that less expensive tablet-based traffic displays might provide an interim solution. That position drew criticism from NTSB Chair Jennifer Homendy, who has urged the FAA to require permanent cockpit-based traffic awareness systems.

The FAA is expected to publish a formal proposal in the coming months. If finalized, the first compliance deadlines could take effect as early as 2027 for commercial airlines, followed by phased implementation for general aviation.

For airlines, aircraft manufacturers, avionics suppliers and private aircraft owners, the proposal signals that the next major investment in aviation safety may soon become a regulatory requirement rather than an operational choice.

JBizNews Desk | Washington, D.C.

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The Bureau of Labor Statistics reported Thursday that the U.S. labor force participation rate fell to 61.5% in June, its lowest level since March 2021 and, setting aside the pandemic period, the lowest in 50 years, matching a level last seen in June 1976. The decline helped push the unemployment rate down to 4.2%, but largely because hundreds of thousands of Americans stopped looking for work rather than finding new jobs.

At first glance, the June employment report appeared mixed. Employers added just 57,000 jobs, well below economists’ expectations of 115,000, and down from a downwardly revised 129,000 jobs in May. At the same time, the unemployment rate declined to its lowest level in a year. A closer look at the household survey, however, tells a very different story.

According to the report, the U.S. labor force shrank by approximately 720,000 people during June, while the number of Americans classified as not participating in the labor force increased by more than 830,000. Household employment—a separate measure from the payroll survey—fell by 507,000, while the employment-to-population ratio declined to 59%, its lowest level since October 2021.

Many economists said those numbers provide a more accurate picture of current labor-market conditions than the headline unemployment rate.

Dan North, Senior Economist for North America at Allianz, said the labor force participation rate—not the unemployment rate—is the figure demanding the most attention, describing June’s decline as unusually large both on a monthly and yearly basis.

Mike Reid, Head of U.S. Economics at RBC, characterized the report as a “massive exodus” from the labor force, suggesting the decline reflects a combination of retirements, discouraged workers abandoning their job searches and broader demographic changes.

Heather Long, Chief Economist at Navy Federal Credit Union, noted it was especially striking to see roughly 720,000 Americans stop looking for work during the same month that the leisure and hospitality sector also lost jobs.

What makes June’s report particularly noteworthy is who exited the workforce.

Rather than older Americans nearing retirement, much of the decline occurred among prime-age workers, those between 25 and 54 years old—a demographic that historically maintains the strongest attachment to the labor market. Some economists cautioned that monthly household survey data can be volatile and subject to future revisions. Nevertheless, the latest figures continue a longer-term trend that has seen labor force participation remain well below its peak of more than 67% reached around the year 2000.

For businesses, the implications are significant.

A shrinking labor force reduces the number of available workers, making it more difficult for employers to fill open positions while placing upward pressure on wages and hiring costs. At the same time, fewer people earning paychecks ultimately means less consumer spending—the primary engine of the U.S. economy.

Separate data released by Challenger, Gray & Christmas showed U.S. employers announced the highest number of layoffs for the month of May since 2020, with companies citing artificial intelligence as a contributing factor in roughly 40% of announced job cuts. The figures suggest automation continues reshaping hiring decisions across multiple industries.

For the Federal Reserve, June’s employment report adds another layer of complexity to an already difficult economic outlook.

Slower hiring and declining labor force participation argue against further interest-rate increases, with some economists saying the data strengthens the case for the Fed to hold rates steady. Seema Shah, Chief Global Strategist at Principal Asset Management, said the report challenges recent expectations that the labor market had regained momentum while easing pressure on policymakers to tighten monetary policy further.

At the same time, inflation remains above the Federal Reserve’s long-term 2% target, leaving policymakers balancing signs of a cooling labor market against continued concerns over elevated prices. Federal Reserve Chair Kevin Warsh, who described labor conditions as “steady” earlier this week, now faces another closely watched employment report that complicates the central bank’s policy decisions.

The next monthly employment report is scheduled for August 7, when investors, businesses and policymakers will be watching closely to determine whether June’s sharp decline in labor force participation proves to be a temporary anomaly—or a sign that America’s workforce is entering a more prolonged slowdown.

JBizNews Desk | Washington, D.C.

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A violent line of thunderstorms tore across New Jersey Friday evening and left more than 230,000 homes and businesses without electricity, according to restoration updates from Jersey Central Power & Light (JCP&L), the FirstEnergy subsidiary serving much of northern and central New Jersey. By Saturday afternoon, the utility said crews had restored power to nearly 80,000 customers, leaving about 150,000 still without service—roughly 95,000 in northern New Jersey and 55,000 in the central part of the state.

Public Service Electric & Gas (PSE&G), New Jersey’s largest electric utility, also reported widespread storm damage. As of Saturday morning, the company said it had restored power to 138,000 customers since extreme heat began on July 1, with powerful winds toppling trees, power lines, and approximately 165 utility poles throughout its service territory.

“We know being without power is challenging, particularly in hot weather,” said Paul Toscarelli, PSE&G’s Vice President of Electric Operations, adding that additional line crews were working throughout the Independence Day holiday weekend to restore service as quickly as possible.

The storm was driven by intense straight-line winds rather than a tropical system or widespread tornado outbreak. Dan Zarrow, chief meteorologist for New Jersey 101.5, said the combination of extreme heat and humidity fueled wind gusts exceeding 70 miles per hour in some locations.

JCP&L spokesman Chris Hoenig said the storm swept across virtually the utility’s entire service territory from north to south, leaving few communities untouched. Morris County and Monmouth County sustained the greatest damage, accounting for more than 90,000 outages at the height of the storm.

The timing could hardly have been worse. Communities across New Jersey were preparing for one of the busiest holiday weekends of the year when widespread outages forced the cancellation of Independence Day celebrations, including Summit’s fireworks at Soldiers Memorial Field. Restaurants, grocery stores, retailers, and other small businesses lost valuable holiday sales while many also faced spoiled inventory after prolonged power failures. JCP&L established free water and ice distribution sites for customers left without electricity during the dangerous heat.

Behind the storm damage sits a larger business story involving the region’s electrical grid.

PJM Interconnection, which manages the electric grid serving New Jersey and 12 other states along with the District of Columbia, reported electricity demand climbing to roughly 163 gigawatts on Thursday as the Northeast heat wave pushed heat index values above 110 degrees across portions of the Mid-Atlantic. That demand came within striking distance of PJM’s all-time record of 165,563 megawatts, established during the summer of 2006.

To help maintain reliability, the U.S. Department of Energy issued emergency orders under the Federal Power Act. Energy Secretary Chris Wright authorized PJM to temporarily operate certain power plants beyond normal environmental restrictions and, if necessary, require large industrial customers—including major data centers—to switch to backup generators during emergency conditions. Facilities drawing at least 50 megawatts of electricity can be directed to move onto backup generation within 15 minutes if the grid becomes critically stressed.

It marked the third time during 2026 that federal emergency authority has been used to support PJM’s electrical system.

The strain also drove electricity prices sharply higher. Wholesale electricity prices in portions of PJM exceeded $2,000 per megawatt-hour on Thursday, while the region’s Western Hub benchmark settled near $1,223, almost three times the level seen during comparable summer demand periods a year earlier. Businesses on demand-based utility rates and consumers with variable-rate electricity plans face the greatest exposure to those price spikes.

PJM officials say the long-term driver behind rising electricity demand is no longer a mystery.

The grid operator projects that approximately 30 of the next 32 gigawatts of expected electricity demand growth through 2030 will come from expanding data centers, which require enormous amounts of power to support artificial intelligence, cloud computing, and digital infrastructure. PJM’s latest capacity auction produced a record clearing price of $333.44 per megawatt-day, significantly increasing the future cost of guaranteeing sufficient generating capacity across the region.

Those higher costs ultimately flow through to utility customers, helping explain why New Jersey lawmakers recently advanced legislation requiring large data centers to bear a greater share of future electric infrastructure costs.

The immediate concern, however, remains restoration efforts.

PSE&G warned that additional thunderstorms could move through New Jersey on Sunday, creating the possibility of new outages while crews continue repairing damage from Friday night’s storms. By early Sunday, FirstEnergy’s outage maps showed the number of customers without electricity gradually falling toward 90,000, although the company cautioned that complete restoration would require several more days because of the widespread damage.

For New Jersey residents and business owners, utility officials continue urging customers to avoid downed power lines, minimize refrigerator openings to preserve food, monitor official outage maps, and prepare for continued restoration work as crews race to rebuild the electric system during one of the hottest stretches of the summer.

JBizNews Desk | New Jersey

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The biggest fireworks show the country has ever attempted lit up the sky over the National Mall in the early hours of Sunday, July 5, after storms forced organizers to evacuate the crowd and push President Trump’s speech past 11 p.m. Saturday. Freedom 250, the White House-backed group organizing America’s 250th birthday celebrations, said the display featured roughly 850,000 pyrotechnic effects launched from 10 sites across the National Mall and West Potomac Park, along with eight barges on the Potomac River.

The company behind the display was Pyrotecnico, a fifth-generation, family-owned fireworks company based in New Castle, Pennsylvania. Company President Rocco Vitale told CBS News that his 75-person crew spent months planning the event, using GPS-synchronized firing systems to coordinate what he described as the largest production his company has ever attempted.

While organizers promoted the display as the biggest in history, Guinness World Records had not officially verified a new world record as of Sunday. Guinness measures the number of fireworks successfully detonated, while Freedom 250’s announced figure referred to total pyrotechnic effects, making the two measurements different. The current Guinness record remains 810,904 fireworks, set in Bocaue, Philippines, during a 2016 New Year’s celebration.

Severe thunderstorms nearly derailed the celebration. Heavy rain and lightning moved through Washington Saturday evening, prompting the U.S. Secret Service to temporarily evacuate thousands of spectators from the National Mall into nearby museums and federal buildings before allowing them to return later in the evening.

President Donald Trump arrived after the weather delay and delivered his Independence Day remarks shortly after 11 p.m. He thanked members of the U.S. military, celebrated America’s founding ideals, and urged support for his SAVE America Act before the fireworks display began.

Earlier in the day, organizers canceled the scheduled Independence Day parade because of dangerous heat, with temperatures reaching approximately 102 degrees. Federal officials said 86 people received medical treatment during the event, while 34 were transported to local hospitals, including several suffering from heat-related illnesses.

Beyond the spectacle, the event highlighted growing economic pressures facing the fireworks industry. Nearly all consumer fireworks sold in the United States are imported from China, and tariffs have significantly increased costs for distributors and municipalities.

Pyrotecnico and other fireworks companies have acknowledged raising prices to offset higher import costs. Across the country, numerous cities and towns reduced, postponed, or canceled Independence Day fireworks because of rising expenses. Some communities relied on emergency fundraising campaigns to keep long-standing July 4 traditions alive.

The contrast was striking. While Washington staged an unprecedented national celebration, many smaller communities scaled back displays because they could no longer afford them.

Neither Freedom 250, the National Park Service, nor the U.S. Department of the Interior disclosed the total cost of the Washington production.

Industry experts estimate the fireworks alone likely cost between $6 million and $7 million, before labor, transportation, permitting, security, and setup expenses. Public federal records show the Department of the Interior previously obligated approximately $1.5 million for National Mall fireworks planning under an earlier contract, though officials have not released final costs for this year’s expanded celebration.

Vitale said Pyrotecnico anticipated trade disruptions well in advance by building inventory and sourcing fireworks from multiple countries, including the United States, Italy, Spain, and other international suppliers.

Weather also disrupted Independence Day celebrations elsewhere. Severe storms interrupted a July 4 concert in Philadelphia, while New York City’s Macy’s Fourth of July Fireworks proceeded despite several small fires that briefly broke out on the Brooklyn Bridge during the event.

Whether Guinness ultimately certifies a new world record or not, Washington delivered one of the largest and most ambitious fireworks displays ever produced. The celebration showcased both America’s 250th anniversary and the growing financial challenges facing an industry increasingly affected by global supply chains, tariffs, and rising production costs.

JBizNews Desk | Washington, D.C.
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Federal officials ordered thousands of people off the National Mall on Saturday evening, cutting short one of the most heavily promoted tourism events in Washington’s history as severe thunderstorms rolled toward the capital just hours before President Donald Trump was set to speak. The National Park Service issued a weather evacuation alert around 7:15 p.m., asking fireworks visitors to seek shelter and follow directions from park rangers, law enforcement personnel and other event staff.

“The safety of our guests, performers, and staff is our top priority,” Freedom 250 spokesperson Danielle Alvarez said in a statement. “Due to approaching severe storms, Freedom 250, United States Secret Service, United States Park Police, National Park Service, the Federal Emergency Management Agency, and all public safety partners are asking all guests to evacuate event grounds and seek temporary shelter in a nearby building.”

The order landed at the worst possible moment for a city that has spent the better part of a year betting on this weekend. Thousands attending the Great American State Fair and other areas around the National Mall were told to leave, and organizers steered them into federal buildings pressed into service as shelters. Visitors were directed to the Department of Commerce, Department of Education, Department of Agriculture, the Internal Revenue Service building, the Ronald Reagan Building, and several Smithsonian museums. The Internal Revenue Service building at 1111 Constitution Ave. NW reached occupancy capacity.

For Washington’s hospitality industry, the disruption arrived on a day that was supposed to cap a banner run. More than two dozen hotels rolled out DC250 packages this summer hoping to attract overnight guests, with luxury properties reporting record bookings. Visitors to the District pump more than $11.4 billion into the local economy each year and generate $2.3 billion in local tax revenue, while roughly 50 million visitors were expected to spend money in the city around the anniversary celebrations. Elliott Ferguson, who leads the city’s tourism arm, had called the administration’s slate of 250th events a clear positive for the industry.

The storms followed a punishing stretch of heat that had already forced cancellations. Washington’s National Independence Day Parade was called off late Friday night. Todd Marcocci, president of Under The Sun Productions, which oversaw the parade, said the decision came after consultation with the National Park Service, the D.C. government and Freedom 250, the nonprofit organizing the anniversary celebrations. The cancellation followed the hottest July 3 Washington had experienced in decades, as Reagan National Airport reached 102 degrees Friday afternoon, breaking a record for the date that had stood since 1966. Among those affected were 80 students from the Grand Island Senior High marching band in Nebraska, who had traveled specifically to perform.

Organizers moved quickly to salvage the night. Freedom 250 announced around 9:10 p.m. that the gates would reopen at 9:45 p.m., with President Trump scheduled to deliver remarks around 11 p.m. before the fireworks display. “Rain or shine, the American people deserve a celebration worthy of our nation’s historic 250th birthday,” the group said, adding that a little rain would not diminish the celebration. The president struck the same note on social media, saying he would not let rain stop the celebration.

The logistics of restarting a secured event of this scale were significant. The Secret Service said its security screening areas would reopen shortly and that everyone who had evacuated would need to go through screening again. Two law enforcement sources told CBS News the Secret Service had dismantled its magnetometers to protect them from storm damage, meaning tens of thousands of returning guests required new security screening before the program could resume.

The weekend’s disruptions came against a broader tourism picture that was already mixed heading into the nation’s 250th anniversary. U.S. travel spending is forecast to reach a record $1.37 trillion in 2026, driven primarily by domestic travelers. At the same time, international arrivals to the United States fell 5.5% in 2025 from the previous year, and industry groups have promoted America’s 250th, the Route 66 centennial, and the FIFA World Cup as major opportunities to reverse that trend. Booking data showed visitors increasingly making shorter, event-focused trips to Washington rather than week-long vacations, with vacation-rental analysts reporting that the city’s average length of stay has declined as travelers build itineraries around specific anniversary events.

That made a smooth, nationally televised Fourth of July celebration even more valuable for the businesses counting on it, from downtown hotels to vendors operating at the Great American State Fair. A storm-delayed marquee event does not erase a year of reservations, but for an industry leaning heavily on one holiday weekend to showcase America’s 250th birthday, the severe weather served as an unwelcome reminder that even the biggest celebrations remain at the mercy of the forecast.

JBizNews Desk | Washington
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A record 72.2 million Americans were expected to travel at least 50 miles from home during the Independence Day holiday period, according to AAA, setting a new record despite gasoline prices remaining well above last year’s levels. The forecast, released by AAA on June 17, projected more travelers than last year’s record 71.8 million, highlighting continued consumer demand for summer vacations even as travel costs increased.

Stacey Barber, Vice President of AAA Travel, said the number surpassed last year’s record even as the pace of growth slowed.

“For many Americans, traveling the week of July 4th is tradition,” Barber said. She added that while travel growth is beginning to level off, Americans are still hitting record numbers on the roads, in the skies, and at sea.

The travel period spans nine days, from Saturday, June 27, through Sunday, July 5. AAA developed the forecast with S&P Global Market Intelligence, using economic data including employment, household wealth, gasoline prices, and airline and hotel bookings.

The overwhelming majority of travelers chose to drive. AAA projected 61.4 million people would travel by car, representing about 85% of all holiday travelers. That is virtually unchanged from last year’s 61.3 million, despite significantly higher gasoline prices.

On Thursday, the national average price for regular gasoline stood at $3.84 per gallon, according to AAA. That was more than 20% higher than the same period last year. Prices, however, have fallen sharply in recent weeks, down from $4.29 a month earlier and well below the May 21 peak of $4.56, when fuel costs surged during the conflict with Iran.

“Overall, gas prices remain the highest they’ve been in four years, but the downward trend since late May is welcome news during the busy summer driving season,” AAA said.

Fuel prices continue to vary widely across the country. Hawaii has the highest statewide average at $5.47 per gallon, followed by California at $5.39 and Washington at $5.07. Among the least expensive states are Indiana at $3.10, Texas at $3.35, and Oklahoma at $3.36.

Even with gasoline costing more than last summer, driving remains the most affordable option for many families, particularly those traveling with children. That has helped keep road-trip numbers steady while other travel expenses have climbed.

Air travel remained relatively flat. AAA expected 5.85 million people to fly during the holiday period, a 0.2% increase from last year and roughly 8% of all travelers. The average domestic round-trip airfare reached about $830, approximately 5% higher than a year earlier, based on booking data. Popular routes to destinations such as Chicago and Denver experienced some of the largest price increases.

The fastest-growing segment of holiday travel is neither automobiles nor airplanes. AAA projected 4.93 million travelers would use buses, trains, or cruise ships, a 5.3% increase from last year. Cruise vacations account for much of that growth, as more families choose trips that bundle transportation, accommodations, and meals into a single price.

Based on booking data, the most popular domestic destinations included Seattle, Orlando, Anchorage, Miami, and New York City. AAA said Seattle ranked as the nation’s most popular destination this Independence Day.

For motorists, timing proved critical. Transportation analytics company INRIX projected the heaviest congestion during the second weekend of the holiday period. On Saturday, June 27, traffic was expected to be worst between noon and 5 p.m. INRIX recommended departing before 10 a.m. whenever possible. Travelers returning home on Sunday, July 5, were advised to leave before 11 a.m., with the most severe congestion expected from noon until 6 p.m.

Rental cars also remained in strong demand. Hertz expected Thursday, July 2, to be its busiest pickup day of the holiday period. According to the company, Orlando, Denver, Boston, Los Angeles, and New York City ranked among the busiest rental markets based on advance reservations. AAA also reported that domestic rental-car prices were running roughly 10% higher than last year.

The broader picture is a travel market that has settled into a more sustainable pattern after several years of rapid post-pandemic growth. The increase from 71.8 million to 72.2 million travelers represents another record, although the gains are more modest than the double-digit increases seen in previous years.

That resilience sends an important signal for businesses that rely on holiday travel, including hotels, restaurants, airlines, cruise operators, and gasoline retailers. Consumers have largely absorbed higher airfares and fuel costs without abandoning vacation plans. For many families, the holiday trip remains a priority, even if they trim spending elsewhere to make it happen.

JBizNews Desk | New York

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The world’s largest money manager just committed $100 million to something that has nothing to do with the stock market. On March 11, BlackRock announced Future Builders, a five-year program funded by The BlackRock Foundation to train 50,000 Americans as electricians, plumbers, HVAC technicians and ironworkers. “Throughout our history, tradespeople have built our country,” said BlackRock Chairman and CEO Larry Fink. The surprise is not the size of the check. It is what the check says about how many of America’s biggest companies are now thinking about hiring—and why.

For much of the last five years, the loudest debate in corporate hiring centered on diversity goals. Many companies set targets to increase representation among their workforces. Today, many of those employers are changing course. The new emphasis is simpler: hire the person with the skills to do the job. Many companies have reduced or eliminated hiring targets tied to demographic representation while placing greater weight on skills and qualifications.

The change did not happen on its own. On January 21, 2025, President Donald Trump signed Executive Order 14173, restricting diversity programs within the federal government and warning that employment practices favoring one group over another could face legal scrutiny. A follow-up executive order issued on March 26, 2026, expanded that focus to federal contractors by restricting certain diversity-related activities. Many corporate legal departments responded by reviewing and revising hiring policies.

The shift can be seen across some of America’s largest employers. In January 2025, Meta told employees it was ending several programs designed to increase hiring from underrepresented groups. Janelle Gale, Meta’s vice president of people, said the legal landscape surrounding those programs had changed. Google also dropped aspirational hiring goals for underrepresented groups, reduced parts of its diversity organization, and removed certain diversity commitments from its annual reports.

Replacing many of those hiring targets is an approach known as skills-based hiring. Instead of relying heavily on college degrees or other traditional credentials, employers increasingly evaluate whether applicants possess the specific skills required for the job. More companies are removing four-year degree requirements and emphasizing practical experience and demonstrated ability. Roughly 85% of employers now report using some form of skills-based hiring, up from 81% a year earlier. The goal is to broaden the talent pool while selecting candidates based primarily on their ability to perform the work.

One distinction is important. Expanding the applicant pool is not the same as setting hiring targets. Companies continue to recruit broadly and encourage qualified applicants from many backgrounds to apply. The key difference is that many employers now say the final hiring decision is increasingly based on demonstrated skills and qualifications rather than meeting representation goals.

That brings the story back to BlackRock’s investment in skilled trades. The company is not alone. Lowe’s has committed $250 million to workforce training, while Meta has pledged $115 million toward similar efforts. AT&T says it needs more skilled trades workers as part of its five-year, $38 billion expansion of high-speed fiber infrastructure supporting artificial intelligence. Google has committed $15 million alongside the Electrical Training Alliance to help prepare electricians for growing demand.

The reason is straightforward. Larry Fink has warned that the United States faces a shortage of electricians and other skilled trades as artificial intelligence drives a nationwide construction boom in data centers and energy infrastructure. Licensed electricians, plumbers, HVAC technicians, and ironworkers cannot be produced overnight. Training takes years, and many of these occupations already offer salaries that can reach six figures.

Another important point is often overlooked. These hiring changes are separate from supplier diversity programs. Many major corporations continue spending heavily with minority- and women-owned businesses through supplier initiatives. Google and AT&T, for example, each spend at least $1 billion annually with certified minority- and women-owned suppliers as members of the Billion Dollar Roundtable. While hiring practices have evolved at many companies, supplier diversity programs remain a significant part of corporate procurement strategies.

Viewed together, the trend reflects a broader shift in corporate workforce planning. Legal developments, labor shortages, and the growing demand for specialized skills are leading many employers to place greater emphasis on practical ability while investing billions of dollars to train the workforce they expect to need over the next decade.

JBizNews Desk | New York

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When JPMorgan Chase & Co. told securities regulators on June 25 that Marianne Lake would retire, it closed one of Wall Street’s longest-running guessing games — who would eventually replace Chief Executive Jamie Dimon. What that filing did not spell out in plain dollars is how much Lake carries out the door. Drawn from the stock awards listed in the bank’s own regulatory disclosures and its most recent proxy statement, the figure lands near $50 million in unvested shares that will keep vesting on schedule even after she is gone.

That money is not a parting gift. It is pay Lake already earned in past years, handed to her as restricted stock that had not fully vested when she announced her exit. Big banks structure senior pay this way on purpose. A large slice of each year’s compensation comes as stock that vests slowly, over three to five years, so that leaving early usually means walking away from a pile of unvested shares.

Lake does not lose hers. Companies like JPMorgan build in what is often called a qualifying retirement provision. Employees who hit certain age and length-of-service marks are allowed to keep their unvested awards, which continue vesting on the original timetable rather than being canceled. Lake, who joined the bank in 1999 and spent more than 25 years there, clears those thresholds. So the roughly $50 million stays hers, paid out over the coming years as each grant reaches its vesting date.

Her situation stands apart from the four executives who are staying. In the same June 25 disclosure, JPMorgan handed new one-time retention awards to the leaders it wants to keep in place through any future handoff at the top. Doug Petno and Troy Rohrbaugh, both just named co-presidents, each received awards valued at $30 million. Mary Erdoes, who runs asset and wealth management, and Jennifer Piepszak, the chief operating officer, each received $20 million. Those grants are entirely restricted stock that vests after three years, and only if the bank achieves an average return on tangible common equity of at least 12% between 2026 and 2028. The recipients also must remain employed throughout the period.

Because Lake is the one leaving, she receives none of those new retention awards. Her payout consists of the older stock she had already accumulated, protected by the retirement rules rather than by any fresh deal.

The backdrop is the race to run the largest bank in the United States. Lake served as JPMorgan’s chief financial officer from 2013 to 2019, then led consumer lending, and in 2024 became sole CEO of consumer and community banking, the division that oversees the bank’s branches, credit cards, and home and auto lending. For years she was viewed as one of the leading candidates to succeed Dimon, and had she been selected she would have become the highest-ranking woman in American corporate life, running a bank with nearly $5 trillion in assets.

Her retirement came as Doug Petno and Troy Rohrbaugh emerged as the bank’s leading internal succession candidates. Petno, 61, now serves as sole chief executive of the commercial and investment bank, while Rohrbaugh, 56, takes over Lake’s former consumer and community banking division. Both now occupy the tier immediately below Dimon, 70, who has said he expects to remain chief executive for about three more years before likely staying on as chairman to advise his successor.

The timing surprised parts of Wall Street. Several bank analysts said they had long assumed Lake would ultimately become chief executive, and Bloomberg described her departure as abrupt. People familiar with her plans say she is expected to take a senior position at another company rather than retire from business altogether.

The leadership changes arrived alongside a broader capital plan. A day earlier, following the Federal Reserve’s annual stress test results, JPMorgan’s board authorized a new $50 billion share repurchase program beginning July 1 and increased the quarterly dividend by 10%, to $1.65 a share from $1.50, starting in the third quarter.

For everyday readers, Lake’s payout offers a look at how the top of American banking compensates its executives. The headline figure may sound like a reward for losing the CEO race. In reality, it represents deferred compensation earned over many years and preserved under retirement provisions available to long-serving executives. The bank is using fresh performance-based stock grants to retain the leaders it wants to keep while allowing a departing veteran to collect compensation she had already earned. Lake leaves after more than a quarter-century with the stock she accumulated along the way—and with her name still linked to one of Wall Street’s most closely watched succession stories.

JBizNews Desk | New York

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Governor Mikie Sherrill signed New Jersey’s new state budget late Tuesday, putting a record $60.7 billion spending plan into law just before the state’s midnight constitutional deadline, her office said. It is the first budget of her term, and she cast it as a plan built around one idea: making the state more affordable for the people who live there.

The budget totals about $60.743 billion, the largest in New Jersey history, and took effect Wednesday, July 1. Sherrill said the plan holds down costs for families without raising taxes on individual residents, pointing to housing, health care and property taxes as the pressures she wanted to ease.

For most households, the piece that matters most is property tax relief. The budget sets aside more than $4.1 billion for it — the biggest such commitment the state has ever made. That includes roughly $2.19 billion for the ANCHOR rebate program, $345 million for Senior Freeze, and $756 million for Stay NJ, the newer program aimed at helping seniors stay in their homes.

Families with children also get a bump. The budget raises New Jersey’s Child Tax Credit by 25% for three tax years, so a household that received the top credit of $1,000 will now get $1,250. Commuters benefit too: the plan puts nearly $1.1 billion toward NJ Transit operations, an increase of $235 million, or about 28%, and directs $12.4 billion to public schools.

Sherrill also used the budget to show fiscal restraint. It includes a full $7.3 billion pension payment — the sixth year in a row the state has paid its full share, and, her office said, the first time in decades a governor has fully funded the system in a first year. The plan keeps a surplus of just over $6 billion and cuts the state’s structural deficit to about $1.35 billion, down from more than $3 billion when she took office in January.

How to pay for all of it is where the fight is. Much of the new revenue comes from businesses. The budget counts on $4.82 billion from the Business Alternative Income Tax, $4.08 billion from the Corporation Business Tax, and $814 million from the Corporate Transit Fee charged to the state’s largest companies. It also adds a new assessment requiring employers to ask workers whether they or family members are on Medicaid.

Business leaders objected fast. Michele Siekerka, president and CEO of the New Jersey Business & Industry Association, said the state’s employers are “still under attack,” noting that nearly all of the budget’s revenue-raisers land on business in a state that already ranks among the worst in the nation for business taxes. Siekerka did credit the plan for funding the New Jersey Manufacturing Extension Program and for money tied to Sherrill’s push to cut red tape for companies.

Republicans said the budget spends too much and breaks a campaign promise. State Senator Michael Testa said it spends more taxpayer money than ever while asking families to accept the same broken promises. Assemblyman Mike Inganamort said Sherrill vowed as a candidate not to raise taxes, and argued this budget does. The spending bill passed the Assembly 58-20 and the Senate 26-14, with a single Republican crossing over in each chamber.

Some of the sharpest criticism was about process. Alongside the main plan, lawmakers approved a separate $358.8 million supplemental bill in the final hours — its largest single piece a low-interest loan of about $105 million to help Jersey City close a large hole in its own budget. Sherrill had campaigned against exactly these kinds of last-minute add-ons, and good-government groups said the closed-door process fell short of the transparency she promised.

The senior program drew complaints too. To keep Stay NJ affordable, the state lowered income limits and trimmed benefits for higher-earning retirees, dropping the program’s cost from about $1.2 billion to roughly $742 million. Chris Widelo of AARP New Jersey said the final plan fell short of what seniors had been counting on, though earlier pushback is credited with softening deeper cuts Sherrill first proposed.

Now the work shifts to delivery. State Treasurer Aaron Binder said the plan keeps New Jersey on disciplined footing while protecting schools and pensions. Residents will start to feel the effects over the coming months as rebate checks, credits and program changes take hold — and as the state watches Washington, where officials warn that federal funding cuts could force harder choices in next year’s budget.

JBizNews Desk | New Jersey
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Nearly half of Americans cannot say what the country’s 250th anniversary actually celebrates, according to a national survey the Cato Institute released on Thursday, just two days before the Fourth of July. The poll, written by Cato polling director Emily Ekins, found that 46% of adults did not know the milestone marks the adoption of the Declaration of Independence on July 4, 1776. Just over half, 53%, answered correctly.

The survey was designed by the Cato Institute and conducted by Morning Consult, which interviewed 2,253 American adults online on June 25 and 26. The margin of error is approximately two percentage points.

The incorrect answers varied widely. 8% believed the anniversary marks the ratification of the U.S. Constitution, which came years later. 6% thought it commemorates America’s victory in the Revolutionary War, 5% said the nation’s first presidential election, and 3% believed it marks the Pilgrims’ arrival at Plymouth Rock.

The knowledge gap was greatest among younger Americans. Among Gen Z, roughly ages 18 to 26, 61% could not identify what the 250th anniversary commemorates, while only 39% answered correctly.

Ekins said the findings reveal an interesting contradiction. Americans may know relatively little about the nation’s founding, yet they continue to feel deeply connected to it. The survey found 86% are grateful to be Americans and 79% say they are proud to be American. 76% hold a favorable view of the country’s founding, while 70% believe its founding principles remain important today.

That pride, however, is not always matched by civic knowledge. 58% of respondents did not know the primary purpose of the U.S. Constitution is to establish and limit the powers of the federal government, with only 41% answering correctly. 57% could not identify the principal reason the American colonies sought independence from Britain, while 43% correctly cited taxation without representation and the lack of political representation. One historical fact most Americans did know was that George Washington served as the nation’s first president, correctly identified by 77% of respondents.

For the business community, the survey also highlights changing economic attitudes. Americans continue to view capitalism more favorably than socialism, 52% to 37%. Yet younger generations are moving in a different direction. Among Gen Z, 53% view socialism favorably compared with 45% who view capitalism favorably. Nearly as many young adults also expressed favorable views of communism (38%) as capitalism.

Those attitudes are beginning to influence politics. The survey found that the label “Democratic Socialist” makes 39% of Americans more likely to support a candidate and 40% less likely. Among Democrats (61%) and Gen Z (51%), however, the label provides a clear political advantage.

Americans also continue to connect the nation’s prosperity to its founding institutions. 82% said the Constitution played an important role in making the United States a wealthy country. Respondents most frequently credited America’s success to limited government under the Constitution, free markets and capitalism, and a culture of hard work.

At the same time, many expressed concern about the country’s future. 56% fear the United States could cease to be a free nation within the next fifty years, a concern shared by majorities of both Republicans and Democrats. 57% believe America has already drifted from its founding principles. When asked what poses the greatest threat to the republic, respondents pointed to government corruption, politicians ignoring the Constitution, and excessive concentration of political power.

Despite those concerns, Americans continue to support the nation’s constitutional system. 61% prefer power to remain divided among the branches of government even if it slows decision-making. 72% believe presidents should obey Supreme Court rulings even when they disagree with them, and 58% say no political party should hold too much power.

The findings arrive as communities, businesses, nonprofits, museums, and civic organizations prepare for a year of America 250 celebrations expected to generate significant tourism, sponsorship opportunities, and retail spending through 2026.

The survey also underscores why the Historic Morris Katz President Collection legacy of Holocaust survivor Morris Katz carries renewed significance to help educate the next generation.

Having endured the horrors of Nazi tyranny before finding refuge in the United States, Katz understood the value of freedom in a way few Americans ever could. The assassination of President John F. Kennedy profoundly affected him. He viewed it as a personal attack on the nation that had given him liberty, hope, and a new beginning. Inspired to honor America’s democracy, Katz spent the next six years creating The Presidential Collection, an extraordinary series of paintings depicting every President of the United States as a tribute to the office of the presidency, the Constitution, and the enduring ideals of American freedom.

At a time when nearly half of Americans cannot identify what the nation’s 250th anniversary commemorates, Katz’s work serves as more than an artistic achievement. It is a reminder that freedom is never guaranteed. It must be understood, appreciated, protected, and passed from one generation to the next.

As America celebrates its 250th birthday, The Presidential Collection stands not only as a tribute to the nation’s leaders, but also as a powerful educational legacy—one created by a man who experienced life without freedom and dedicated his talent to honoring the country that restored it.

JBizNews Desk | Washington

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NEW YORK — As Americans gather this Fourth of July to celebrate nearly 250 years of independence, fireworks will illuminate the skies, flags will line neighborhoods, and families will honor the freedoms that define the nation.

For Morris Katz, those freedoms were never simply part of an annual celebration.

They were the reason he had a second chance at life.

A Holocaust survivor who immigrated to the United States in 1949, Katz viewed America as the country that restored everything tyranny had tried to destroy—freedom, opportunity, dignity, and hope. Those ideals became the foundation of an extraordinary career that blended artistic innovation, entrepreneurship, education, and patriotism into a legacy that continues to inspire decades later.

One of his most celebrated works was a portrait of President John F. Kennedy, which was displayed in more than 100 museums across the United States. Katz believed art had the power to unite Americans during moments of triumph and tragedy alike.

Then came November 22, 1963.

As television and radio broadcasts announced that President Kennedy had been assassinated, Katz made a decision that would occupy the next six years of his life.

Having survived the Holocaust and witnessed the devastating consequences of hatred and dictatorship, he saw Kennedy’s assassination as more than the loss of a president. To him, it represented a personal attack on the democratic ideals and freedoms that had given him refuge in America.

Rather than respond with despair, he responded with purpose.

Within minutes of hearing the news, Katz committed himself to creating a lasting tribute to the presidency and to the nation he loved. Over the next six years, he meticulously painted every President of the United States in the traditional Old Master style, devoting approximately 200 hours to each portrait. The result became The Presidential Collection, spanning from George Washington through George H.W. Bush—a tribute not only to America’s presidents, but also to the principles of liberty, democracy, leadership, and public service that define the nation.  

For Katz, the Collection was never intended to be simply an art exhibit.

It was a message.

He believed future generations should understand the blessings of freedom, appreciate the sacrifices made by those who built and defended the nation, and recognize that the presidency represents an institution larger than politics. His hope was that Americans, regardless of party or background, could find common ground through a shared appreciation of the country’s history and democratic ideals.

That vision remains especially relevant as the nation approaches its 250th anniversary.

A stronger closing that ties directly to today’s civic values would be:

Long before creating The Presidential Collection, Morris Katz had already earned international recognition as one of the world’s most sought-after artists. A two-time Guinness World Record holder who surpassed Pablo Picasso as the world’s most prolific artist and was recognized as the world’s quickest painter, Katz was also selected from more than 500 artists to create the official portrait commemorating Pope Paul VI’s historic visit to the United States, with millions of reproductions distributed worldwide. According to a feature in Newsmax Magazine, his privately held Presidential Collection is valued at more than $250 million, yet Katz never offered it for sale. When he was offered $50,000 for his original portrait of President John F. Kennedy shortly after completing it—a remarkable sum at the time—he declined, saying simply, “It represents my freedom.” That conviction inspired the Holocaust survivor to devote the next six years to creating The Presidential Collection as his lasting gift to America. At a time when the values of freedom, patriotism, civic responsibility, and respect for our nation’s history are more important than ever, his message continues to inspire new generations to appreciate the extraordinary blessings of the United States and the leaders who helped shape it.

Recognizing the Collection’s educational value, the New Jersey Commission on Holocaust Education, working with the Orthodox Jewish Chamber of Commerce, made The Presidential Collection available as a statewide educational resource, distributing materials to chief school administrators, charter schools, Renaissance School Project leaders, principals, teachers, and guidance counselors to support instruction in American history, patriotism, Holocaust education, leadership, and civic responsibility.   The initiative encourages educators to use the Collection as a gateway for classroom discussions about democracy, national unity, civic responsibility, and the values that continue to shape the United States.  

The Collection’s educational message has since reached thousands of schools, helping students connect the lessons of history with the responsibilities of citizenship.

Its influence also extended far beyond classrooms.

Millions of Presidential Collection postcards featuring Katz’s artwork were distributed throughout the United States and internationally, becoming treasured keepsakes and highly sought-after collectibles. Today, many remain in private collections, preserving a unique artistic record of the American presidency for historians, educators, and collectors alike.

The legacy continues through the Morris Katz Foundation, whose Morris Katz Legacy Award recognizes leaders whose service reflects the principles Katz devoted his life to preserving. Honorees include U.S. Ambassador to Israel Mike Huckabee, Israeli President Isaac Herzog, Congressman Josh Gottheimer for introducing the HEAL Act to strengthen Holocaust education, and Congressman Chris Smith, whose decades of leadership included authoring legislation establishing the U.S. Ambassador-at-Large to Monitor and Combat Anti-Semitism while advancing human rights and religious freedom.

For the business community, Katz’s life also illustrates how enduring enterprises are built.

He transformed personal gratitude into intellectual property, educational programming, collectibles, exhibitions, and a globally recognized brand whose impact continues long after his lifetime. His story demonstrates that the strongest businesses are often driven not only by innovation, but by purpose.

As Americans celebrate another Independence Day, Morris Katz’s greatest masterpiece may not be the paintings themselves.

It may be the timeless message behind them—that freedom is never guaranteed, democracy depends on each generation to protect it, and gratitude for the opportunities America provides can inspire a legacy that endures for generations.

To view The Presidential Collection, visit www.MorrisKatz.org.

For information regarding exhibitions, educational programs, or licensing opportunities, contact Art@MorrisKatz.org.

JBizNews Desk | New York
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Freddie Mac reported Thursday, July 2, that the average rate on a 30-year fixed mortgage eased to 6.43%, its lowest level in seven weeks, down from 6.49% a week earlier. The dip, published in the company’s weekly Primary Mortgage Market Survey, offers a modest bit of relief to homebuyers heading into the heart of the summer buying season, though it lands against a murky outlook for where rates go next.

Sam Khater, Freddie Mac’s chief economist, said the decline coincides with purchase demand that has continued to edge higher, calling it an encouraging sign as prospective buyers respond to small improvements in affordability. The 15-year fixed mortgage also slipped, averaging 5.79%, down from 5.84% the prior week. A year ago, the 30-year rate averaged 6.67% and the 15-year stood at 5.80%, meaning today’s 30-year loan is cheaper than it was last summer while the 15-year is roughly flat.

It helps to understand what the number is. The Freddie Mac survey is a weekly average, built from thousands of loan applications submitted Monday through Wednesday and released each Thursday. Because it smooths results over several days, it can lag the sharper swings seen in daily rate trackers. On the same day the survey showed a seven-week low, some daily lender data pointed the other way, with Zillow-sourced figures putting the typical 30-year purchase rate closer to 6.66%, up slightly from the day before. The takeaway is that rates have been hovering in a narrow band around the mid-6% range, and the weekly average happened to catch the softer end of it.

The bigger question is direction, and here the signals conflict. The drop follows a weak June jobs report released Thursday by the Bureau of Labor Statistics, which showed the economy added just 57,000 jobs, well below the roughly 113,000 expected, with the unemployment rate easing to 4.2%. Softer hiring can pull bond yields and mortgage rates lower, and it revived some hope that the Federal Reserve might hold steady or eventually cut. But the Fed has been signaling the opposite. At its June meeting, policymakers struck a hawkish tone, with a majority indicating a rate increase may still be needed later this year to fight inflation that remains well above the central bank’s 2% target, running near 4.2% in the most recent reading. Fed Chair Kevin Warsh has urged markets to watch the incoming data rather than lean on the central bank for guidance.

For the housing market, even small moves in rates matter. Every quarter-point shift changes a buyer’s monthly payment and, at the margin, decides whether some households can qualify at all. After a long stretch of thin inventory and stretched affordability, homebuilders and real-estate brokerages have been counting on steadier borrowing costs to bring hesitant buyers off the sidelines. Lower rates also tend to lift refinancing, giving existing homeowners a chance to trim payments, and can free up household cash for spending elsewhere in the economy, from furniture and appliances to home improvement.

The affordability picture remains tight even with the dip. Home prices in much of the country are still near record highs, and a rate in the mid-6% range keeps monthly costs far above where they sat during the ultra-low-rate years earlier this decade. That combination has kept many would-be sellers in place, unwilling to trade a cheap existing mortgage for a costlier new one, which in turn has limited the supply of homes for sale.

For now, buyers get a small opening. Whether it widens depends on the tug-of-war between a cooling labor market, which argues for lower rates, and stubborn inflation and a cautious Fed, which argue for higher ones. With the survey collected before the holiday weekend and the next reading due in a week, borrowers weighing a purchase or refinance face the same advice housing economists have offered all year: shop multiple lenders, since quotes can vary enough to save thousands over the life of a loan.

JBizNews Desk | McLean, Virginia

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Amazon is accelerating the global rollout of its Project Kuiper satellite internet network, expanding its challenge to SpaceX’s Starlink as the battle to provide high-speed broadband from space enters a new phase. The company said it is preparing additional satellite launches and expanding ground infrastructure as it works toward building a constellation capable of serving consumers, businesses and governments worldwide.

Project Kuiper is Amazon’s multibillion-dollar effort to deploy more than 3,200 low-Earth orbit satellites, creating a global broadband network designed to bring high-speed internet to underserved and remote communities. The initiative represents one of Amazon’s largest long-term infrastructure investments outside its core retail and cloud-computing businesses.

The company has already begun launching operational satellites and says customer service will expand as more spacecraft are placed into orbit. Amazon plans to use multiple launch providers—including United Launch Alliance (ULA), Blue Origin, Arianespace, and SpaceX—to rapidly build out the constellation over the coming years.

The race is being driven by surging global demand for reliable broadband connectivity. Low-Earth orbit satellite systems offer significantly lower latency than traditional satellite internet, making them attractive not only for rural households but also for airlines, shipping companies, emergency responders, energy producers and governments seeking resilient communications infrastructure.

Amazon is entering a market currently dominated by SpaceX’s Starlink, which has already deployed thousands of satellites and serves customers across dozens of countries. Starlink has become an increasingly important communications platform for businesses, consumers and government agencies, particularly in areas where traditional fiber or wireless networks remain unavailable.

Amazon believes its extensive cloud infrastructure through Amazon Web Services (AWS) provides a competitive advantage. Company executives have said Kuiper customers will benefit from direct integration with AWS, allowing businesses to combine satellite connectivity with cloud computing, artificial intelligence, data storage and enterprise applications.

Industry analysts estimate the global satellite broadband market could generate tens of billions of dollars annually over the next decade as demand for always-on connectivity continues to grow. Competition is also expected to intensify as governments increasingly view satellite communications as critical infrastructure for economic development and national security.

Building a global satellite network, however, requires enormous capital investment. Beyond manufacturing thousands of satellites, operators must finance repeated rocket launches, construct worldwide ground stations and continually replace satellites as they reach the end of their operational lives.

Amazon has committed billions of dollars to Project Kuiper, viewing the initiative as a long-term growth opportunity that complements its broader technology ecosystem. The company has also introduced customer terminals designed to provide affordable internet access for homes, businesses and public institutions.

For investors, Project Kuiper represents another example of Amazon using its financial scale to enter a market with substantial long-term potential, even if profitability remains years away. While the division is unlikely to materially affect near-term earnings, analysts believe satellite broadband could eventually become another major business alongside Amazon’s retail, logistics, advertising and cloud operations.

As launches continue and customer deployments expand, the competition between Project Kuiper and Starlink is expected to reshape the global broadband market, bringing faster internet access to millions of people while opening new opportunities for enterprise communications around the world.

JBizNews Desk | Seattle

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The U.S. Department of Agriculture is launching a major effort to boost domestic fertilizer production, announcing $500 million in new funding to help build and expand fertilizer manufacturing plants across the United States.

Agriculture Secretary Brooke Rollins unveiled the initiative Wednesday, saying the program is designed to strengthen America’s fertilizer supply chain, reduce dependence on foreign suppliers, and help lower one of farmers’ biggest operating expenses.

The new initiative, known as the Fertilizer Investment and Expansion for Long-Term Domestic Supply (FIELDS) program, will provide grants ranging from $15 million to $150 million for projects that expand U.S. fertilizer production capacity. Companies receiving awards must provide matching funds, with financing coming through the Commodity Credit Corporation. Applications will remain open for 45 days.

The announcement comes after years of volatility in fertilizer prices.

Global fertilizer costs surged following Russia’s invasion of Ukraine and climbed again during recent Middle East conflicts that disrupted energy markets and international shipping. Since fertilizer production depends heavily on natural gas and other energy inputs, higher fuel prices quickly translate into higher costs for farmers.

Those higher costs eventually reach consumers.

Fertilizer is one of the largest expenses involved in producing corn, wheat, soybeans, fruits, and vegetables. It also affects livestock producers because grain is a major component of animal feed. When fertilizer becomes more expensive, food production costs rise throughout the agricultural supply chain, ultimately contributing to higher grocery prices.

Rollins said the new program is intended to accelerate construction of facilities that can produce fertilizer domestically rather than relying on imported supplies.

She contrasted the new initiative with a previous USDA fertilizer program, saying earlier efforts funded numerous projects but resulted in relatively few completed facilities. The new program, she said, will place greater emphasis on projects that are financially sound, construction-ready, and capable of bringing additional production online quickly.

Federal officials say applications will be evaluated based on project readiness, financing, market demand, execution capability, and measurable benefits for American agriculture.

The initiative also reflects a broader shift in U.S. industrial policy.

In recent years, Washington has increasingly treated products such as semiconductors, pharmaceuticals, critical minerals, and agricultural inputs as strategic industries that deserve domestic investment. Policymakers argue that relying too heavily on foreign suppliers leaves the country vulnerable during wars, trade disputes, and other global disruptions.

Alongside the fertilizer announcement, the Environmental Protection Agency introduced a separate challenge program offering up to $30 million in prize funding to encourage development of alternatives to traditional chemical crop desiccation methods used before harvest.

For farmers, however, the immediate focus remains fertilizer affordability.

Building new production facilities will take time, and the matching-fund requirement means private companies must commit substantial capital alongside the federal investment. Even under an accelerated timetable, new plants are unlikely to begin producing fertilizer overnight.

Still, agricultural organizations welcomed the announcement as a step toward improving long-term supply security and increasing competition within the domestic fertilizer market.

For consumers, the program represents an investment aimed at stabilizing food production costs over the coming years. While it will not immediately lower grocery prices, increasing domestic fertilizer production could reduce future price spikes caused by overseas conflicts or supply disruptions.

The success of the initiative will ultimately depend on how quickly projects move from applications to construction and eventually into commercial production. If successful, the program could help strengthen one of the most important links in America’s food supply chain while reducing dependence on imported fertilizer for years to come.

JBizNews Desk
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The U.S. Treasury Department and Goldman Sachs Asset Management announced Thursday that Goldman will become one of the first major financial firms to participate in the new Trump Accounts savings program, offering professionally managed investment portfolios designed for children. The partnership expands a centerpiece of the Administration’s effort to encourage long-term investing by giving young Americans an opportunity to begin building wealth early in life.

The Trump Accounts program was created under recently enacted federal legislation and provides eligible newborns with a government-funded investment account intended to grow over decades through the financial markets. Families can make additional voluntary contributions, while participating financial institutions manage the investments under federal guidelines.

Goldman Sachs Asset Management said it will offer several low-cost diversified investment options through the program, allowing parents to select portfolios designed to match different levels of investment risk and long-term growth objectives. Company officials said the funds will emphasize broad market diversification and long-term investing rather than short-term trading.

Treasury officials said expanding participation by major investment firms is critical to giving families access to a competitive range of investment products while keeping management fees low. Goldman joins a growing list of financial institutions expected to participate as the program rolls out nationally.

Supporters say the initiative could significantly improve long-term financial security by allowing investment returns to compound over nearly two decades before beneficiaries reach adulthood. Financial planners have long argued that beginning to invest early—even with relatively modest amounts—can dramatically increase lifetime savings because of compound growth.

Under the program, accounts remain in the child’s name and are professionally managed until the beneficiary reaches the age specified under federal law. Withdrawals are generally restricted to approved purposes, including higher education, purchasing a first home, starting a business, or other qualifying long-term financial goals.

Administration officials have described the program as an effort to encourage broader participation in capital markets while helping families build assets across generations. Treasury officials said they expect additional banks and investment companies to announce participation in the coming months.

For Goldman Sachs, the partnership represents another expansion of its wealth management and consumer investment business. While the firm has traditionally focused on institutional investors and high-net-worth clients, recent years have seen Goldman broaden its offerings to reach a wider range of individual investors through digital investment platforms and retirement products.

Business groups welcomed the announcement, saying greater access to professionally managed investment accounts may improve financial literacy while encouraging long-term saving habits among younger generations.

The program’s success will ultimately depend on participation by families, market performance over time, and the number of financial institutions offering competitive investment options. If widely adopted, the accounts could channel billions of dollars into long-term investments while giving millions of children an early start toward building financial assets.

As implementation continues, investors and financial institutions alike will be watching how quickly families enroll and whether additional asset managers join what could become one of the country’s largest long-term savings initiatives.

JBizNews Desk | Washington, D.C.

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President Donald Trump on Thursday defended his family’s sprawling business interests and his children’s commercial activity, waving off conflict-of-interest concerns days after a federal ethics filing showed he earned more than $1.4 billion from cryptocurrency ventures last year. Speaking from the Oval Office, Trump said the presidency reaches so deeply into the economy that almost anything his children do could be cast as a conflict. “If they buy an energy efficient truck, they have inside information,” he said. Trump added that he tells his children to “stay away” from anything that could look improper, but said they were running businesses long before he entered politics.

The remarks followed the release Tuesday of Trump’s annual financial disclosure by the U.S. Office of Government Ethics. The 927-page report — nearly 700 pages longer than his prior filing — showed the president collected more than $1.4 billion connected to digital assets in 2025, his first year back in the White House. That figure made crypto, not real estate, his single largest source of income. The interview aired on CNBC and was conducted by anchor Joe Kernen.

The disclosure listed roughly $635 million in royalties from a licensing deal tied to his $TRUMP meme coin, launched days before his second inauguration. It also showed more than $500 million from World Liberty Financial, the crypto venture Trump co-founded in 2024 with his sons Eric Trump and Donald Trump Jr. His youngest son, Barron Trump, is listed with the firm as well.

Trump’s older, traditional businesses still produced heavy income. The filing reported about $122 million from Trump Doral, $77.5 million from Mar-a-Lago, and $39 million from another property. The president also disclosed more than $80 million in income from legal settlements with media companies including ABC, CBS, Meta, YouTube and X, plus millions in book and merchandise royalties.

For companies watching Washington, the more consequential thread was Trump’s growing willingness to take direct government stakes in private firms. Pressed on a report that the government could take a 5% stake in OpenAI, Trump sidestepped the question and instead pointed to Intel, the struggling chipmaker. The administration announced an $8.9 billion investment in Intel common stock last August, handing the government a 10% stake. Trump said he told the company he could solve its problems but wanted “10% of the company.”

That approach — an administration trading help for equity — is reshaping how executives think about federal involvement in their industries. It arrives alongside a heavy trade agenda. The administration said Wednesday it would not renew the United States-Mexico-Canada Agreement for another 16 years, a move that keeps the pact alive for a decade but triggers annual reviews that could reopen major terms. A senior official said Trump’s main concern is the trade deficits the United States runs with Canada and Mexico.

Trump also used the interview to stress that he does not want an economic downturn on his record. He invoked former president Herbert Hoover, who led the country into the Great Depression, and blamed him for raising interest rates and taxes. “I don’t want to be Herbert Hoover,” Trump said, casting himself as focused on growth and low borrowing costs.

The president returned repeatedly to the economy’s political stakes. His war with Iran, which began in February, remains in a fragile ceasefire, and Trump has argued that instability in the Middle East is itself a market risk. He repeated a claim that Iran will buy American farm goods as part of a potential peace deal, an assertion Tehran has denied.

Critics say the disclosure underscores how tightly the president’s personal wealth is now tied to industries his administration regulates, particularly crypto, where the White House is pushing Congress to pass new market rules. A representative for the Trump Organization said the filing showed a company with valuable assets, substantial liquidity and a conservative balance sheet, and called the nearly 1,000-page report a sign of transparency.

For businesses, investors and lobbyists, the combined message from the disclosure and the interview is that the lines between Trump’s policy agenda and his family’s commercial interests remain blurred — and that the administration is comfortable operating in that gray zone as it takes equity in companies, rewrites trade deals and leans on the Federal Reserve to keep rates in check.

JBizNews Desk | Washington
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A global shortage of memory chips has grown severe enough that Apple is pursuing suppliers it would normally avoid. According to reporting published Wednesday, July 1, by Bloomberg, the iPhone maker is seeking approval to purchase memory chips from two Chinese semiconductor companies that appear on a U.S. Pentagon blacklist, as the artificial intelligence boom continues to tighten global supplies and drive up costs.

The companies are ChangXin Memory Technologies (CXMT) and Yangtze Memory Technologies (YMTC), two of China’s largest memory-chip manufacturers. Apple is reportedly exploring the use of their memory products in devices sold within China while lobbying the Trump administration, including the Commerce Department and the White House, for permission to move forward.

The effort reflects just how strained the global memory market has become.

Demand for advanced memory chips has exploded as technology companies race to build artificial intelligence data centers. Massive orders from AI developers have absorbed much of the world’s available supply, leaving fewer chips for smartphones, tablets, laptops, and other consumer electronics.

Industry analysts estimate DRAM memory prices climbed roughly 60% during 2025 and could rise another 30% to 40% during 2026, with shortages expected to continue well into 2027.

Apple has already begun passing some of those higher costs to consumers.

Earlier this year, the company increased prices on several MacBook models by between $100 and $300 while raising prices on selected iPads, HomePods, and Apple TV products. Although iPhone prices have remained unchanged, analysts say the continuing memory shortage could place additional pricing pressure on future devices if supply conditions fail to improve.

For consumers, the story extends well beyond Apple.

Memory chips are essential components inside virtually every modern electronic device. When prices rise, manufacturers throughout the technology industry face higher production costs, increasing the likelihood of more expensive laptops, smartphones, gaming systems, servers, and other connected products.

The shortage also highlights the growing impact of artificial intelligence on everyday consumers.

While AI investment has fueled record profits for many technology companies, it has also redirected enormous quantities of advanced semiconductors away from traditional consumer products. The same chips powering AI servers are competing with manufacturers building devices used by millions of households every day.

Apple’s negotiations also underscore the increasingly complex relationship between business and geopolitics.

Both CXMT and YMTC have been identified by the Pentagon as companies with alleged ties to China’s military. Although purchasing products from those companies is not automatically prohibited under every circumstance, Apple is seeking clear guidance from U.S. officials before moving ahead, hoping to avoid future regulatory complications or political backlash.

Some industry analysts believe Apple’s objective is not necessarily to lower costs but simply to secure an additional source of supply.

Supply-chain analyst Ming-Chi Kuo has noted that China’s own demand for memory chips already exceeds domestic production, suggesting Apple may gain only limited cost savings even if approval is granted. Instead, adding another supplier could reduce the risk of production delays as the global shortage continues.

For investors, the situation demonstrates how artificial intelligence is reshaping the technology supply chain in unexpected ways. Companies that manufacture memory chips have become some of the biggest beneficiaries of the AI boom, while device makers face mounting pressure from rising component costs.

For consumers, the takeaway is straightforward. As long as demand for AI infrastructure continues to outpace memory production, the cost of many electronic devices is likely to remain under upward pressure. Apple’s willingness to seek approval to purchase chips from previously avoided suppliers illustrates just how tight the global market has become.

The AI revolution may be transforming business, but it is also making the everyday technology Americans rely on more expensive—and even the world’s most valuable company is searching for new ways to secure the components it needs.

JBizNews Desk | New York
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A major change in health coverage took effect Wednesday, July 1, and two of the country’s largest retailers are stepping in to help seniors make sense of it. For the first time, Medicare has begun covering obesity drugs through a temporary government program, and Walmart and CVS Health are rolling out new services to help older Americans understand, access, and manage the benefit.

The coverage comes through a demonstration program known as Bridge, which allows eligible Medicare beneficiaries to receive GLP-1 obesity medications for a copay of about $50 per month. That represents a dramatic shift for millions of seniors. Popular weight-loss medications made by Novo Nordisk and Eli Lilly have largely been out of reach for older Americans living on fixed incomes, and the new program significantly expands access. The initiative, administered by the Centers for Medicare & Medicaid Services (CMS), is scheduled to run through the end of 2027.

The challenge is that many seniors do not yet know the benefit exists. A survey released by the Obesity Care Advocacy Network found that 82% of older Americans were unaware Medicare was beginning to cover obesity medications. Even among those who have heard about the program, determining eligibility and understanding the enrollment process can be confusing.

That is creating an opportunity for retailers with thousands of neighborhood pharmacies.

CVS Health is expanding support through its pharmacy network and MinuteClinic locations by helping patients understand coverage, navigate insurance requirements, and manage medication side effects. The company is also introducing a $49 MinuteClinic virtual visit, allowing eligible patients to speak with a licensed clinician who can evaluate them and prescribe a GLP-1 medication when appropriate.

Walmart and Sam’s Club are taking a similar approach, offering pharmacist consultations, educational materials, and assistance understanding the new Medicare benefit in stores across the country, including many rural communities where access to specialists is often limited.

For consumers, the strategy makes sense. Pharmacies are often the easiest point of entry into the healthcare system. While physician appointments may take weeks, pharmacists are available in neighborhoods every day. By helping seniors navigate a complicated new federal benefit, Walmart and CVS strengthen customer relationships while positioning themselves at the center of what could become one of the fastest-growing prescription categories in America.

The opportunity for drug manufacturers is equally significant. GLP-1 medications produced by Novo Nordisk and Eli Lilly have already transformed the pharmaceutical industry. Opening Medicare coverage to millions of beneficiaries could dramatically expand demand, especially as obesity affects more than 40% of American adults.

The program also highlights the growing debate over healthcare costs. These medications can cost hundreds of dollars each month without insurance, making widespread Medicare coverage an expensive commitment for taxpayers. Researchers also continue studying long-term outcomes, including evidence that some patients regain weight after stopping treatment, raising questions about how long coverage should continue and who should ultimately pay for it.

Another uncertainty is what happens after 2027. The Bridge demonstration was originally intended as a temporary transition before private Medicare Part D insurers assumed responsibility for broader coverage. However, several insurers declined to participate voluntarily, citing concerns about costs and program design, prompting federal officials to extend the demonstration instead.

For seniors, however, the immediate impact is straightforward. A medication that was financially out of reach for many older Americans is now available for about $50 per month for eligible beneficiaries. That could improve access to treatment for millions of people while reducing long-term health complications associated with obesity.

For Walmart and CVS, the program represents more than another prescription to fill. It is an opportunity to become trusted healthcare advisers for millions of Medicare beneficiaries at a time when pharmacies are increasingly expanding beyond dispensing medications into providing broader healthcare services.

Whether the program ultimately becomes permanent remains uncertain. Its future will depend on costs, patient outcomes, and future policy decisions. But for now, seniors have a new benefit available, and two of America’s largest pharmacy operators are racing to help them use it.

JBizNews Desk | New York
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For months, rising prices have squeezed American households, driven largely by an energy shock tied to the war with Iran. Now, with oil and gas costs falling in the wake of a U.S.-Iran détente, traders on the prediction-market platform Kalshi are betting the worst is over. As reported Wednesday by CNBC, traders now see only about a 28% chance that headline inflation climbs above 4.2% this year—the annual rate recorded in May.

That 4.2% figure is increasingly viewed as the likely peak. On Kalshi, participants buy and sell contracts tied to real economic outcomes, effectively putting money behind their forecasts. These contracts settle based on the monthly Consumer Price Index released by the Bureau of Labor Statistics. The next CPI report, covering June, is scheduled for July 14.

The shift in sentiment is closely tied to energy prices. Gasoline, diesel, and shipping costs surged after the conflict with Iran disrupted traffic through the Strait of Hormuz, through which roughly one-fifth of the world’s oil normally passes. As shipping has resumed and crude oil prices have retreated from their wartime highs, inflation pressures have begun easing across the broader economy.

For American families, lower energy prices can quickly translate into lower transportation costs, reduced shipping expenses, and eventually slower price increases for groceries, consumer goods, and travel. If inflation has indeed peaked, households could begin seeing meaningful relief after months of elevated living costs.

Prediction markets are not guarantees, however. They reflect the collective expectations of traders and adjust rapidly as new information becomes available. While Kalshi has become an increasingly watched indicator of market sentiment, the official inflation data released by the government will ultimately determine whether those expectations prove accurate.

The recent inflation surge has been driven largely by what economists describe as a supply shock rather than broad-based consumer demand. Energy prices affected nearly every sector of the economy, from manufacturing to transportation. As that supply disruption fades, inflationary pressure should ease naturally—provided oil markets remain stable.

The outlook also carries implications for interest rates. Federal Reserve Chairman Kevin Warsh has indicated the central bank remains focused on returning inflation to its 2% target before considering lower interest rates. If inflation continues to cool, it could eventually give the Fed greater flexibility to reduce borrowing costs for mortgages, auto loans, and credit cards, though officials have emphasized they are not rushing to make that decision.

There are still significant risks. The ceasefire involving Iran remains fragile, and any renewed disruption in the Strait of Hormuz could quickly send energy prices—and inflation—higher again. Markets are currently betting that stability will continue, but geopolitical developments remain an important wildcard.

For consumers, the takeaway is one of cautious optimism. Markets increasingly believe the inflation spike that defined much of the spring has passed, with falling energy prices leading the improvement. The upcoming inflation reports will determine whether that optimism is justified. If current trends continue, American households may finally begin to experience sustained relief from the price pressures that have weighed on budgets throughout the year.

JBizNews Desk
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New York City’s electric utility, Con Edison, spent Thursday working to keep its power grid stable as a dangerous heat wave sent temperatures to 100 degrees, the hottest conditions the city has experienced in years. The National Weather Service placed New York under an Extreme Heat Warning through the July 4 weekend, with temperatures reaching 100 degrees Thursday and remaining dangerously hot into Friday. Heat index values are expected to climb as high as 110 to 115 degrees across parts of the tri-state area.

To keep its equipment from failing under the strain, Con Edison reduced voltage by 8% in the northwest Bronx and the northern tip of Manhattan, a protective measure that affected roughly 39,600 customers in the Bronx. The company activated its Emergency Response Center earlier in the week, placed repair crews on standby, and asked customers to reduce electricity use between 2 p.m. and 10 p.m., when air-conditioning demand is at its highest.

For most New Yorkers, the power grid is invisible until it stops working. For the businesses that depend on it, a heat wave like this is a direct hit to the bottom line — and a preview of a more expensive future.

When millions of air conditioners switch on at once, the strain falls hardest on the aging network of underground cables and substations beneath the city. Con Edison says it invested a record $3.9 billion upgrading its systems across New York City and Westchester County ahead of this summer to handle the more frequent and more intense heat waves the region is now experiencing. That investment comes with a price.

The utility has proposed raising electric rates by about 11.3% and gas rates by 13.4% across New York City and Westchester, increases that would affect roughly 3.6 million residential customers and more than 368,000 commercial accounts if approved by the New York Public Service Commission. Con Edison says the increases are needed to fund reliability upgrades like those being put to the test this week. Critics argue New Yorkers already pay some of the nation’s highest energy bills. The average city household using 600 kilowatt-hours a month paid about $218.55 in 2025, up from roughly $142.51 in 2016.

Small businesses feel the impact most. Restaurants, retail stores and offices that must keep customers and employees comfortable cannot simply turn off the air conditioning. Summer electricity bills for a typical small business could increase by around 8% under the proposal, while larger commercial users could see increases closer to 10%. During triple-digit heat, keeping the lights on and the building cool is not optional — it is the cost of staying in business.

That reality has created a growing demand-response industry. Through Con Edison’s Smart Usage Rewards program, customers with smart meters can earn payments for voluntarily reducing electricity use during peak demand periods. Frank Bruckner, co-founder and CEO of Meltek, one of the utility’s demand-response partners, said nearly all customers with smart meters are eligible, yet most have never heard of the program. His company currently works with about 6,000 participants. The economic logic is simple: paying customers to reduce usage during peak hours is less expensive than operating older, less-efficient “peaker” power plants that run only on the hottest days.

The pressure extends well beyond New York. This week, Energy Secretary Chris Wright signed two emergency orders under the Federal Power Act authorizing PJM Interconnection — the grid operator serving New Jersey, Pennsylvania and 11 other states — to curtail electricity use by large power consumers, including some data centers, and allow certain power plants to operate beyond normal pollution limits through July 3. PJM forecast record electricity demand of about 166,304 megawatts for Thursday, potentially surpassing its all-time record set in 2006. Although New York operates on a separate grid managed by the New York Independent System Operator, the federal action highlights how severely the heat is straining power systems across the East Coast and how rapidly expanding energy-hungry data centers are reshaping electricity demand.

City Hall is urging conservation to reduce pressure on the grid. Mayor Zohran Mamdani asked residents and businesses to set thermostats to 78 degrees while coordinating with Con Edison and National Grid. The city also kept municipal buildings at 78 degrees, dimmed lights during peak demand, opened additional cooling centers, extended pool hours and temporarily suspended evictions for two days. While the request has drawn political criticism, reducing electricity demand during peak hours lowers the risk of outages that can cost businesses sales, disrupt operations and spoil inventory.

The forecast offers little relief before the holiday weekend. With temperatures expected to remain near 100 through Friday before gradually easing, the strain on New York’s electric grid — and on the budgets of the households and businesses that rely on it — is likely to continue through the Fourth of July.

JBizNews Desk | New York

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The consequences of a landmark Supreme Court decision are now spreading across the federal government. In a 6-3 ruling issued Monday in the case known as Trump v. Slaughter, Chief Justice John Roberts and the court’s conservative majority handed President Donald Trump sweeping authority to fire the heads of independent agencies that police markets, protect consumers, and enforce workplace rules.

The decision overturns a 91-year-old precedent, Humphrey’s Executor, that since 1935 had shielded officials at agencies like the Federal Trade Commission from being removed without cause. The case arose from Trump’s firing of Rebecca Slaughter, a Democratic FTC commissioner dismissed without cause because her views did not align with the administration’s agenda. Roberts wrote that the president may remove his subordinates at will.

The ruling does not abolish these agencies, but it changes who controls them. Presidents can now pack independent commissions with members of a single party, giving the White House far more direct say over regulators that were designed to operate at arm’s length from politics. The logic extends to the National Labor Relations Board, the Merit Systems Protection Board, the Consumer Product Safety Commission, the Securities and Exchange Commission, the Equal Employment Opportunity Commission, and roughly two dozen others.

For businesses and workers, these are not obscure bodies. They set the rules that govern everyday commercial life. The NLRB referees disputes between employers and unions and decides what counts as fair labor practice. The Consumer Product Safety Commission polices unsafe toys and household goods. The SEC oversees the stock trades and disclosures that underpin retirement accounts. The EEOC enforces protections against workplace discrimination. When control of these agencies shifts, the regulatory ground shifts under every company and employee they touch.

The practical effects are already visible. The NLRB has spent much of the past year effectively paralyzed after Trump removed member Gwynne Wilcox, leaving the board without the quorum it needs to issue decisions or update rules. Cathy Harris, a member of the Merit Systems Protection Board, was similarly removed. With Monday’s ruling clearing the last legal obstacle, the administration is now positioned to reshape these boards with appointees aligned to its deregulatory agenda.

For companies, the shift cuts in more than one direction. Businesses that chafed under aggressive labor or consumer-protection enforcement may welcome a lighter regulatory touch and more chances to press their case directly with newly aligned agencies. But the same volatility that lets one president reshape the boards will let the next one reverse course, raising the prospect of sharp regulatory swings every time the White House changes hands. Predictability — something businesses prize as much as any single policy — becomes harder to count on.

There was one notable exception. The court rejected Trump’s attempt to immediately fire Federal Reserve Governor Lisa Cook, preserving the central bank’s independence, at least for now. In a separate ruling, the justices held that Cook is entitled to notice and a fair opportunity to respond before any removal, and Roberts wrote that any change to the Fed’s arrangement must come from Congress, not the courts. Carving out the Fed signals the justices’ awareness that markets treat the central bank’s insulation from politics as essential to financial stability.

The dissent was sharp. Justice Sonia Sotomayor, joined by Justices Elena Kagan and Ketanji Brown Jackson, warned that the majority endorsed a theory of “total executive control” that would leave the president with far greater power than ever before, and said the decision “promises only chaos.” The concern is that regulators built to apply consistent, expert rules across administrations could become instruments that change direction with each election.

Trump celebrated on social media, calling it one of the most important rulings ever issued on presidential power. For the White House, the decision caps a long campaign to bring the so-called administrative state under tighter executive command.

For the broader economy, the takeaway is that a large slice of the federal machinery that regulates business, labor, and consumer safety is now more directly answerable to whoever holds the presidency. Companies and workers alike will be watching to see how the newly empowered administration uses that authority — and how quickly the rules they operate under begin to change.

JBizNews Desk
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President Donald Trump said Wednesday, July 1, that professional investment managers—not he—make decisions about his personal finances, responding to questions following the release of a financial disclosure that revealed one of the largest personal fortunes ever reported by a sitting U.S. president.

Speaking with reporters before boarding Air Force One at Joint Base Andrews, Trump said, “We have funds that run my money,” adding that he does not direct individual investments and benefits simply because financial markets have performed well.

His comments came one day after filing his annual financial disclosure with the U.S. Office of Government Ethics, a report that offers an extensive look into the president’s business interests, investments, licensing agreements, and cryptocurrency holdings.

According to an analysis by CNBC, the disclosure shows Trump reported at least $2.24 billion in revenue during 2025, compared with at least $622 million the previous year. At more than 900 pages, the filing is believed to be the longest presidential financial disclosure ever submitted.

A significant portion of that income came from cryptocurrency ventures.

The disclosure reports approximately $1.2 billion in crypto-related revenue, including roughly $580 million connected to World Liberty Financial, the digital asset company launched by members of the Trump family. Additional income came from licensing agreements, investment returns, golf resorts, hospitality businesses, merchandise, and digital assets associated with Trump’s expanding cryptocurrency portfolio.

The filing also lists hundreds of stock transactions involving major publicly traded companies, with individual purchases and sales valued anywhere from hundreds of thousands to tens of millions of dollars. Several trades have drawn attention because they occurred while federal agencies were simultaneously overseeing investigations or regulatory actions involving those companies.

Trump rejected suggestions that those investments present conflicts of interest.

“They invest my money. I don’t talk to them. I don’t even speak to them,” the president said, describing the arrangement as professionally managed and independent from his day-to-day responsibilities.

The disclosure nevertheless has renewed debate among ethics experts over how presidents should separate personal wealth from official duties.

Unlike traditional blind trusts used by many previous presidents, Trump’s disclosure publicly identifies many of his investments and business interests. Critics argue that because the holdings remain publicly known and several involve businesses connected to family members, questions about potential conflicts will likely continue throughout his presidency.

Supporters counter that the public disclosure itself provides transparency, allowing voters and watchdog groups to review the president’s financial interests.

The cryptocurrency holdings have attracted particular attention because the administration is simultaneously overseeing policies that could shape the future of digital assets. Federal agencies continue working on stablecoin regulation, cryptocurrency market oversight, and broader digital asset legislation, areas that could directly affect businesses connected to Trump’s reported investments.

For investors, the disclosure highlights how quickly cryptocurrency has become part of mainstream finance. Just a few years ago, digital assets represented only a small niche within global markets. Today they account for a significant share of the reported wealth of the President of the United States.

The filing also illustrates how modern presidential finances have evolved far beyond traditional salaries, investments, and real estate. Licensing agreements, digital businesses, branding partnerships, cryptocurrencies, and global business ventures now play a much larger role than they did for previous administrations.

Whether the president’s financial structure satisfies ethics concerns will likely remain the subject of continued political and legal debate. What is not disputed is the scale of the reported wealth. The disclosure provides one of the most detailed public snapshots ever released of a sitting president’s financial interests, underscoring both the complexity of modern business holdings and the growing influence of cryptocurrency in the American economy.

JBizNews Desk | New York
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A senior aide to Treasury Secretary Scott Bessent is moving to the Federal Reserve, a personnel change that strengthens ties between two of the nation’s most influential economic institutions.

According to a Bloomberg report published Wednesday, Samantha Schwab, principal deputy chief of staff to Treasury Secretary Scott Bessent, will become an adviser to Federal Reserve Chairman Kevin Warsh. The move comes just weeks after Warsh took office as Fed chairman and begins assembling his senior leadership team.

While a single staffing change might normally attract little attention, this appointment carries added significance because of the close working relationship expected between Warsh and Bessent as they help shape U.S. economic policy.

Schwab joined the Treasury Department in January 2025 and has served as Bessent’s principal deputy chief of staff since April. She also previously worked in the White House during President Donald Trump’s first administration, giving her experience across both the executive branch and economic policymaking.

The appointment arrives as Warsh begins implementing his vision for the Federal Reserve.

After being confirmed by the Senate and taking office in May, Warsh has emphasized restoring price stability, maintaining the Fed’s independence, and gradually reducing the central bank’s enormous balance sheet that expanded during years of bond-buying programs.

The Federal Reserve’s balance sheet remains above $6 trillion, reflecting years of emergency economic support and quantitative easing following the pandemic. Warsh has long argued that the central bank became too heavily involved in financial markets and should gradually return to a narrower focus centered on monetary policy and inflation.

That philosophy closely aligns with views expressed by Treasury Secretary Bessent, making Schwab’s move particularly noteworthy.

For businesses and consumers, the relationship between the Treasury Department and the Federal Reserve matters because together they influence nearly every corner of the economy. The Treasury manages federal borrowing and fiscal policy, while the Fed controls interest rates and monetary policy. Close coordination between the two institutions can shape everything from mortgage rates and business lending to inflation and employment.

At the same time, the appointment is likely to renew discussion about the Federal Reserve’s independence.

The central bank has traditionally operated separately from the White House and Treasury to ensure monetary policy decisions remain insulated from political pressure. Critics often caution that excessive coordination between the Fed and elected officials could undermine investor confidence in the institution’s independence.

Supporters, however, argue that effective communication between the Treasury and Federal Reserve is essential during periods of economic uncertainty and can produce more consistent policymaking.

Warsh himself brings extensive Federal Reserve experience to the role.

He previously served as a Fed governor during the 2008 financial crisis before leaving the central bank in 2011. Since then, he has frequently criticized prolonged quantitative easing and argued that the Fed should maintain a smaller presence in financial markets while focusing more directly on controlling inflation.

Building an experienced advisory team is viewed as one of the first steps toward implementing that agenda.

Schwab’s background inside both the Treasury Department and the White House provides familiarity with the administration’s broader economic priorities while also giving Warsh an adviser experienced in navigating complex federal policymaking.

Although the appointment itself will not immediately affect interest rates or financial markets, it offers an early glimpse into how Warsh intends to lead the central bank and the type of advisers he wants surrounding him.

For investors, businesses, and households, the staffing decision signals that the Federal Reserve’s new leadership is moving quickly to establish its policy team as it confronts inflation, interest-rate decisions, and the long-term challenge of reducing the central bank’s balance sheet.

The appointment reinforces expectations that the Fed under Kevin Warsh will continue emphasizing price stability, disciplined monetary policy, and a gradual return to a more traditional role within the U.S. financial system.

JBizNews Desk
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The cost of financing a new car in America keeps climbing to levels that would have stunned buyers just a few years ago. According to data released Wednesday by Edmunds, the average monthly payment on a new vehicle reached a record $777 during the second quarter, edging above the previous record of $773 set in the first quarter. It marks the third consecutive quarter that average monthly payments have reached a new all-time high.

The report paints a picture of buyers stretching further than ever to afford new vehicles. The average amount financed climbed to a record $44,156, while the average down payment fell 10% from a year earlier to $5,815, meaning more consumers are borrowing larger amounts while putting less money down.

Perhaps the most striking trend is the growing use of extremely long auto loans.

A record 36.5% of all financed new-vehicle purchases carried loan terms of 73 months or longer, while nearly 24% of buyers signed loans lasting 84 months or more—the equivalent of seven years. Once considered unusual, seven-year financing has become increasingly common as buyers seek to lower monthly payments enough to fit new vehicles into household budgets.

Lower monthly payments, however, come with significant long-term costs.

Longer loans increase the total amount of interest paid over the life of the loan while leaving borrowers “underwater” for years, owing more than the vehicle is worth. That can make trading in or selling a vehicle far more difficult and leaves owners financially vulnerable if the vehicle is totaled or unexpected financial hardships arise.

Several factors continue driving affordability challenges.

New vehicle prices remain near historic highs, interest rates are still elevated compared with recent years, and insurance premiums, repair costs, and maintenance expenses have all increased substantially. At the same time, many consumers continue purchasing larger SUVs, trucks, and premium trim packages that carry significantly higher price tags.

Analysts at Edmunds also warn that tariffs could place additional upward pressure on vehicle prices in the months ahead by increasing manufacturing costs for imported vehicles and automotive components.

For many households, a $777 monthly car payment now rivals a mortgage payment from just a few years ago and represents one of the family’s largest recurring monthly expenses. Combined with housing costs, groceries, childcare, and other necessities, transportation is consuming a growing share of household income.

The broader economic implications are also significant.

Auto loans represent one of the largest categories of household debt in the United States, second only to mortgages. As balances grow larger and repayment periods stretch longer, borrowers remain indebted for much greater portions of their financial lives, increasing the risk of future delinquencies if economic conditions weaken.

While used vehicles generally offer lower purchase prices, financing costs remain elevated there as well. Increased demand for affordable used vehicles has also helped support higher resale values, limiting the financial relief available to budget-conscious shoppers.

For automakers and dealerships, longer financing terms have helped maintain sales despite affordability pressures. However, industry analysts caution that extending loan maturities cannot permanently offset rising vehicle prices, and many consumers may eventually delay purchases altogether if affordability continues deteriorating.

For buyers considering a new vehicle, financial advisers recommend focusing on the total cost of ownership rather than simply the monthly payment. A lower monthly payment spread over seven years may ultimately cost thousands of dollars more in interest than a shorter loan with a slightly higher monthly payment.

The latest figures suggest America’s auto market is increasingly being driven not by what consumers want to spend, but by how far lenders are willing to stretch repayment schedules. As monthly payments and loan terms continue reaching record levels, affordability remains one of the industry’s biggest challenges heading into the second half of the year.

JBizNews Desk
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Some of the biggest changes to the federal student loan system in years officially took effect Wednesday, July 1, changing how millions of future college students will borrow money and repay their loans.

The changes stem from the One Big Beautiful Bill Act and apply primarily to borrowers who take out new federal student loans beginning on or after July 1. While most current borrowers can generally remain under existing repayment programs, new borrowers face an entirely different system.

The most significant change affects repayment options.

For newly issued federal loans, several long-standing income-driven repayment plans—including SAVE, PAYE, Income-Based Repayment (IBR), and Income-Contingent Repayment (ICR)—are no longer available. Instead, new borrowers will choose between two primary repayment options.

The first is the new Repayment Assistance Plan (RAP), an income-based program that adjusts monthly payments according to earnings. Payments generally range from about 1% to 10% of a borrower’s income, with any remaining balance eligible for forgiveness after 30 years of qualifying payments.

The second option is a revised Tiered Standard Repayment Plan, which establishes repayment periods ranging from 10 to 25 years, depending on the total amount borrowed. Smaller loan balances receive shorter repayment schedules, while borrowers with larger balances receive additional time to repay.

The changes also affect graduate and professional students.

The long-standing Grad PLUS loan program, which previously allowed graduate students to borrow up to the full cost of attendance, has been eliminated for new borrowers. Graduate students now face annual and lifetime borrowing limits, while professional students—including those attending medical, dental, veterinary, and law schools—also become subject to new federal borrowing caps.

Parents will see changes as well.

Parent PLUS loans are now limited to $20,000 per year per student, with a maximum lifetime borrowing limit of $65,000 for each child. Previously, many parents could borrow up to the full cost of attendance.

Financial aid experts say the new borrowing limits may require more families to rely on savings, scholarships, employer assistance, or private student loans to cover college expenses.

Borrowers currently enrolled in the SAVE repayment program face an important transition.

Millions of borrowers participating in SAVE will eventually be required to move into one of the newly authorized repayment plans after receiving instructions from their loan servicers. Education experts recommend carefully reviewing all available options before making repayment decisions.

Current students who already borrowed before July 1 generally receive transitional protections that allow them to continue borrowing under previous rules while remaining enrolled in the same academic program. However, changing schools, switching degree programs, or taking extended breaks from enrollment could affect those protections.

The legislation also changes certain deferment and repayment provisions available to future borrowers, making it more important than ever for students to understand repayment obligations before accepting federal loans.

For families planning for college, the new rules increase the importance of financial planning.

Longer repayment periods may reduce monthly payments but can significantly increase total interest costs over the life of a loan. Lower federal borrowing limits may also require students to explore additional funding sources before enrolling.

Financial advisers recommend that prospective borrowers estimate future monthly payments, compare available repayment options, and borrow only what is necessary to complete their education.

As tuition costs continue rising nationwide, today’s changes represent one of the most significant shifts in federal higher education financing in decades and will shape how future generations of Americans pay for college.

JBizNews Desk
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The executive running one of BlackRock’s troubled lending funds is on his way out, a departure that lands amid mounting losses and a federal investigation. According to reporting published Wednesday by Bloomberg, Phil Tseng, chief executive of BlackRock TCP Capital Corp., is in the process of leaving the firm following months of losses on soured loans and revelations of a U.S. regulatory probe into the unit’s valuation practices.

Tseng remains an employee of the world’s largest asset manager for now, according to people familiar with the matter, though the timing of his departure and the selection of a successor have not been finalized. The fund he oversees, known by its ticker TCPC, is a business development company that provides loans to middle-market and small businesses—companies that often have limited access to traditional bank financing.

The problems have been building for months. The fund reported $35 million in markdowns during the first quarter, and in January disclosed an estimated 19% decline in net asset value, largely tied to restructurings involving e-commerce investments and the bankrupt Renovo Home Partners. Following that announcement, shares dropped more than 14%. In May, the situation escalated when executives were questioned by the Manhattan U.S. Attorney’s Office regarding how the fund valued certain private investments.

For everyday investors, the story highlights growing risks inside the rapidly expanding private credit industry. Over the past decade, major investment firms have poured hundreds of billions of dollars into direct lending, providing financing to businesses outside the traditional banking system. While those loans often produce attractive returns, they also carry higher risks when economic conditions weaken and borrowers struggle to repay.

Unlike publicly traded stocks, private loans do not trade on open markets, making their values more difficult to determine. Fund managers must estimate what those investments are worth, leaving room for judgment—and scrutiny. Regulators are now examining whether those estimates accurately reflected the true condition of the portfolio.

Because TCP Capital is publicly traded, many individual investors—including retirees seeking high dividend income—own shares. Business development companies have become popular income investments, but the recent losses serve as a reminder that higher yields typically come with higher risks. When borrowers default or require restructuring, both dividend payments and share prices can suffer.

The fund became part of BlackRock through the firm’s broader expansion into private markets. TCP Capital traces its roots to Tennenbaum Capital Partners, which BlackRock acquired in 2018. Last year, BlackRock accelerated its push into alternative investments by purchasing HPS Investment Partners in a deal valued at roughly $12 billion, making private credit an increasingly important part of the firm’s long-term strategy.

The broader private-credit industry is now facing closer examination. Some analysts have warned that years of easy lending may have masked weaker underwriting standards that only become apparent when economic conditions deteriorate. Recent losses at TCP Capital, combined with a federal investigation, are likely to intensify those concerns across Wall Street.

For small and medium-sized businesses, the health of private-credit funds matters. These lenders have become an important source of financing for companies that may not qualify for traditional bank loans. If investors become more cautious and capital becomes harder to raise, financing could become both scarcer and more expensive for businesses that rely on these funds to grow.

The developments do not suggest a broader financial crisis. BlackRock remains one of the world’s strongest asset managers, and a single troubled fund does not define the industry. Still, the combination of significant losses, a leadership change, and a federal valuation probe at a BlackRock-managed fund signals that the private-credit boom is entering a more challenging phase.

For investors, the lesson is straightforward: higher returns often come with higher risks, and as private credit continues to mature, greater scrutiny from regulators and markets alike is likely to follow.

JBizNews Desk
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Tesla is expected to report a modest increase in second-quarter vehicle deliveries, according to analyst estimates compiled by Bloomberg, suggesting the electric vehicle maker continues to grow—but at a much slower pace than during its years of explosive expansion.

Analysts expect Tesla to report approximately 396,466 vehicle deliveries worldwide for the three months ending in June, representing roughly 3% growth from the same quarter a year ago. The company is expected to release its official delivery figures on Thursday, July 2.

If those estimates prove accurate, Tesla would post its second consecutive quarter of year-over-year delivery growth after experiencing annual declines during previous reporting periods. However, the pace remains well below the company’s historic growth rates, when quarterly deliveries routinely approached half a million vehicles.

The vast majority of Tesla’s expected deliveries continue to come from its two highest-volume models—the Model 3 sedan and Model Y crossover. Premium vehicles, including the Model S, Model X, and Cybertruck, are expected to account for only a small portion of overall deliveries.

Regional demand remains uneven.

Analysts point to stronger European sales as one of the primary drivers behind the expected increase, supported by higher fuel prices and continued demand for electric vehicles across several European markets. China is expected to remain relatively stable.

The United States, however, has become a more challenging market.

The expiration of the federal $7,500 electric vehicle tax credit has significantly increased effective purchase prices for many American consumers, reducing one of Tesla’s biggest competitive advantages and making affordability a growing concern.

The delivery report arrives as investors increasingly focus on Tesla’s future beyond automobile manufacturing.

While vehicle deliveries remain one of Wall Street’s most closely watched metrics, much of the company’s valuation is now tied to Chief Executive Elon Musk’s long-term plans involving autonomous driving, robotaxis, artificial intelligence, and humanoid robotics rather than vehicle sales alone.

Even so, vehicle deliveries remain critical because they directly influence Tesla’s revenue, profit margins, manufacturing efficiency, and cash flow.

Competition across the electric vehicle industry continues intensifying.

Traditional automakers have expanded their electric offerings, while Chinese manufacturers continue introducing lower-priced EVs across international markets. Consumers now have substantially more choices than when Tesla largely dominated the segment several years ago.

Industry analysts note that Tesla’s current product lineup also faces increasing pressure from age. The Model 3 and Model Y remain among the world’s best-selling electric vehicles, but both have been on the market for years while competitors continue launching newer designs and technologies.

Investors will receive a more complete picture later this month when Tesla reports its full second-quarter financial results, including revenue, earnings, profit margins, and guidance for the remainder of the year.

For consumers, slower growth could ultimately prove beneficial.

Increasing competition, reduced demand growth, and expanding production capacity throughout the industry may place greater pressure on manufacturers to offer discounts, incentives, financing promotions, or price reductions in order to maintain market share.

Whether Tesla exceeds or falls short of current delivery estimates will likely influence investor sentiment, but the broader story remains clear: the global electric vehicle market is entering a more mature phase where sustained rapid growth can no longer be taken for granted.

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Oil is moving again through the world’s most important energy chokepoint, and American officials say that is quietly stripping Iran of its biggest bargaining chip. According to a U.S. official cited by Bloomberg on Wednesday, commercial shipping through the Strait of Hormuz has surged in recent weeks, with American military support helping push oil flows back above 10 million barrels per day.

The rebound follows the interim peace agreement President Donald Trump signed with Iran, which reopened a corridor that had been largely paralyzed during months of war. The official, who spoke on condition of anonymity, said the recovery in traffic has caught Tehran off guard, underscoring its now-limited ability to halt shipping through the strait while helping trigger a fresh round of attacks around the waterway as Iran tries to reassert control.

The stakes here reach directly into American wallets. Before the war, the Strait of Hormuz carried about a fifth of the world’s oil and liquefied natural gas, with roughly 20 million barrels flowing through on an average day. When Iran choked off that traffic during the conflict, crude prices spiked above $100 a barrel, gasoline jumped, and inflation reignited. Restoring the flow does the opposite: more oil reaching the market means lower prices at the pump and less pressure on the cost of everything that moves by truck, ship, or plane.

With at least 10 million barrels now getting through daily, combined with about 5 million via alternative routes, flows are approaching normal levels. That easing has already shown up in energy markets, where crude has retreated from its wartime highs. For households still absorbing the price shocks of the spring, the return of Gulf oil is the single most important factor pulling energy costs back down.

The fight now is over who controls the corridor going forward. Iran’s chief negotiator, Mohammed Bagher Ghalibaf, told state television this week that sovereignty over the strait belongs to Iran and Oman, and Tehran has signaled that some ships may eventually have to pay transit fees. The memorandum of understanding that ended the fighting provides for toll-free traffic during a 60-day negotiating period but leaves the long-term arrangement unresolved.

That question is at the center of talks this week in Qatar, where U.S. negotiators Steve Witkoff and Jared Kushner are pressing Iran to guarantee open commercial transit. Washington’s position is firm: Trump and Secretary of State Marco Rubio have said neither tolls nor maritime service fees would be acceptable in a final deal. Shippers and oil-industry officials warn that any such charges would violate international law and set a dangerous precedent, potentially inviting similar tolls on other global waterways — a cost that would ultimately filter through to consumers everywhere.

The tension remains combustible. Iran breached the truce last week with a drone attack on a Singapore-flagged container ship, setting off a wave of retaliatory strikes that left the ceasefire on shaky ground. Trump’s decision to call off further strikes and let negotiations continue reflected a clear calculation: he does not want to reignite the economic pain the war caused. The official reportedly noted that the president does not want to be remembered like Herbert Hoover, who presided over the onset of the Great Depression.

For American businesses, the practical picture is one of cautious relief. Freight and insurance costs that spiked during the blockade are easing as tanker traffic normalizes. Manufacturers and retailers that depend on stable fuel prices get some breathing room. And the broader inflation outlook improves as the energy shock that drove up prices this spring gradually fades.

Still, analysts caution that the current calm is a return to the prewar status quo, not a permanent breakthrough. As long as Iran insists on controlling the strait and Washington refuses to accept tolls, the risk of another disruption lingers. Every barrel now moving through Hormuz is a reminder of how much the American economy — from gas stations to grocery stores — depends on a narrow stretch of water half a world away staying open.

For now, the direction is favorable: more oil, lower prices, and an Iran with less leverage than it had a few weeks ago. Whether that holds will depend on talks in Qatar that remain far from settled.

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Indirect U.S.-Iran negotiations in Doha made “positive progress” on Wednesday, according to a statement from Qatar’s Foreign Ministry, while Vice President JD Vance said the talks were “going well” and that discussions on Iran’s nuclear program would begin soon. Qatari and Pakistani mediators held separate meetings with the U.S. and Iranian delegations, and both sides agreed to keep talking.

The upbeat words mask a harder reality. President Trump came into office promising to keep the country out of long, open-ended wars. On February 28, 2026, the U.S. and Israel began strikes against targets in Iran, and after months of fighting the two sides reached a truce. Now the risk is not a forever war but forever talks — a negotiation that could stretch on with no clean finish, keeping energy markets, shippers and American drivers guessing.

Here is where things stand. The U.S. and Iran signed an initial deal in mid-June to end the war, ease sanctions and reopen the Strait of Hormuz while nuclear talks continued. The framework was a 60-day memorandum of understanding that extended the ceasefire, lifted restrictions in the strait, and required Iran to clear all mines from the waterway within 30 days as the U.S. lifted its blockade. Negotiators later agreed to set up four working groups covering sanctions relief, nuclear affairs, reconstruction, and monitoring.

The business stakes run straight through the Strait of Hormuz, the narrow channel that carries a large share of the world’s oil. When it was in doubt, prices jumped and shipping seized up. As the deal took hold, the pressure eased. Brent crude fell to about $73.74 a barrel — its lowest since before the late-February strikes — and U.S. West Texas Intermediate settled near $70. More than 11,000 seafarers stuck in the Persian Gulf have begun to exit through the strait, according to the International Maritime Organization. That drop in oil filtered down to gas pumps and helped cool one of the biggest drivers of the past year’s inflation.

The problem for anyone trying to plan — an airline hedging fuel, a trucking firm setting rates, a family budgeting for the summer — is that none of it is settled. Key issues, including the final status of Iran’s nuclear program, remain unresolved, and a scheduled technical phase of the Switzerland talks was postponed in June. The sticking points are the hard ones. The U.S. wants Iran to accept “zero enrichment,” which Iran has rejected, and the two sides are far apart on timing — reports say Washington floated a 20-year commitment while Tehran countered with five. Iran’s lead negotiator, Mohammad Bagher Qalibaf, has insisted the Strait of Hormuz will be managed by Iran under international law, a claim that unsettles the Gulf states and shippers who depend on the route.

Iran also has a long record of stretching negotiations out. One account tied to Qalibaf described the approach bluntly, saying concessions are won through pressure rather than dialogue and that no move would come before the other side acted. That is the pattern that worries analysts: talks that never quite collapse and never quite conclude, leaving a cloud over oil and shipping for months.

There is a fresh complication. Iran’s former supreme leader has died, with funeral ceremonies planned from July 4 through July 9, and mediators said the next meeting would be scheduled after those processions. Any pause gives Tehran more room to slow-walk the process.

The cost is not only diplomatic. The Pentagon has told senators it needs roughly $80 billion, mostly to cover the U.S. campaign against Iran, on top of a broader defense spending increase Trump is seeking. That request is likely to run into resistance from lawmakers reluctant to add spending at a time of high living costs for Americans. For defense contractors, a longer standoff means steadier orders; for taxpayers, it means a bigger bill.

The most likely near-term outcome, judging by the tone out of Doha, is more of the same: cautious progress, missed deadlines and periodic flare-ups in oil prices whenever the talks wobble. That is better for businesses than open war, which is why crude has drifted lower. But it is a long way from certainty. Companies that move goods, burn fuel or set prices are learning to plan around a question that may not be answered for a long time — and a peace that, if the past is any guide, could take many more rounds to finish.

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Dubai’s tourism chiefs signaled this past week that the emirate intends to stick with its long-range growth plan, even as it digs out of the sharpest travel collapse in its modern history. Issam Kazim, CEO of the Dubai Corporation for Tourism and Commerce Marketing, said at DET’s first stakeholder meeting earlier this month that the emirate’s tourism and economic plans remained unchanged. “The path remains the same, which is ambitious,” he said, in comments reported Saturday, pointing to the city’s D33 economic targets.

That confidence lands at a delicate moment. Early, fragile peace talks between the United States and Iran are lifting hopes across the Gulf that the region is finally turning a corner. A preliminary peace agreement between the two countries, still a broad framework taking shape in early rounds of talks, could hand Iran’s leadership a major economic lifeline as Tehran looks to stabilize after months of war. For Dubai, a city built on outside money and constant motion, calmer waters can’t come fast enough.

The damage has been real, and much of it hit ordinary workers and businesses. The 2026 U.S.-Iran war, which began February 28 and included the temporary closure of the Strait of Hormuz, choked off the very thing Dubai depends on: people flowing through its airports, hotels and malls. Dubai International Airport recorded 18.6 million passengers in the first quarter of 2026, down from 23.4 million a year earlier, with March traffic falling by an estimated 66% from normal seasonal levels.

Hotels felt it immediately. Hotel occupancy across the Middle East fell to 48% in March from 75% in January, and Middle Eastern carriers saw international air traffic drop 61% that month, according to the International Air Transport Association. UAE hotel revenue per available room fell 53% year over year in March, according to a Barclays report, and many properties responded with steep discounts to fill rooms.

This matters far beyond five-star lobbies. Tourism contributed nearly $70 billion to the UAE economy in 2025, a record, accounting for close to 12% of national GDP, and Dubai alone welcomed more than 19 million international overnight visitors that year. When arrivals stall, the pain runs straight through housekeepers, taxi drivers, retail clerks, restaurant staff and the small businesses that feed off visitor spending. Some residents have reported salary reductions and a rising cost of living, adding pressure to the city’s consumer economy.

The government moved to cushion the blow. Dubai implemented targeted economic support measures worth 2.5 billion dirhams to stabilize tourism, hospitality, retail and small and medium-sized businesses during the crisis. Rather than lay off workers en masse, hotel operators are trying to hold their teams together. French hospitality giant Accor said it focused on retaining employees during the uncertainty, moving staff between hotels and markets, after learning during COVID that rehiring and retraining later proved far more costly.

Many owners are using the quiet stretch to renovate. Major refurbishments are underway at Burj Al Arab and Armani Hotel Dubai, with upgrades at Park Hyatt Dubai and The St. Regis Dubai, The Palm, and a well-planned refurbishment can reposition a hotel in 12 to 24 months, versus a four-to-six-year new build. The bet is simple: reopen sharper and cheaper to run just as travelers return.

The airlines are already leading the way back. Emirates has restored 96% of its global network, now serving 138 destinations across 73 countries with roughly 1,300 weekly flights, while flydubai has recovered nearly 80% of its network. More seats mean more arrivals, and bookings are starting to follow. Hotel occupancy in key tourist zones is forecast to reach 80% to 90% by summer 2026, and hotel bookings for June and July have seen a 30% spike in high-demand areas like Palm Jumeirah and Downtown Dubai.

Still, nobody in Dubai is calling this over. Accor’s regional leadership expects visitor numbers to recover before room rates climb back to pre-war highs, a reminder that filling rooms and restoring profits are two different jobs. The recovery is uneven, spending is cautious, and discounting is doing a lot of the heavy lifting.

The wildcard remains the peace process itself. The proposed framework would reopen Iran’s access to global oil markets, ease U.S. sanctions and unfreeze more than $100 billion in overseas assets—potentially the biggest shift in U.S.-Iran economic relations in decades—but banks remain wary without clear legal cover. A durable deal could reopen trade corridors and revive the traveler confidence Dubai runs on. A stumble could freeze the rebound just as it starts. For now, the city is open, discounting hard, and betting that the world comes back.

JBizNews Desk
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If you’d like, I can also generate the matching AP-style image for this story.

Scott Drake, President and CEO of CEC Entertainment, is putting kids’ birthday parties at the center of his strategy to grow Chuck E. Cheese, saying in an interview published June 18 by Pizza Marketplace that birthdays, memberships, and active play are the company’s biggest opportunities to drive future growth.

Drake took over as CEO in February, succeeding longtime chief David McKillips. He previously served as the company’s chief financial officer, where he helped restructure the company’s finances and position it for expansion. Now he wants to make Chuck E. Cheese the first place parents think of when planning a child’s birthday celebration.

That is already a massive business for the chain. Chuck E. Cheese hosts more than 500,000 birthday parties each year, more than any other indoor family entertainment venue in the United States. The company proudly brands itself as the “Birthday Capital of the Universe,” and Drake believes there is significant room to grow that business even further.

Technology is a major part of the plan. Drake said the company’s AI chatbot has already assisted roughly 440,000 guests, answering questions, helping families explore menu options, and guiding parents through the birthday booking process. The same technology will soon power a multilingual phone system capable of answering calls and booking parties around the clock without wait times.

The goal, Drake explained, is not simply to reduce labor costs but to capture bookings the moment families decide to celebrate. If a parent cannot reach someone on a busy weekend and books elsewhere, that opportunity is gone.

The company is also working to ensure Chuck E. Cheese appears prominently when parents ask AI chatbots for birthday party recommendations, reflecting a growing focus on AI-driven search and what marketers call answer-engine optimization.

Birthdays are only one part of Drake’s broader strategy.

The company’s Fun Pass membership program, introduced in May 2024, has changed how many families use Chuck E. Cheese. Drake said more than 400,000 subscriptions were sold within months of launch, eventually leading to the rollout of an annual membership. Today, more than 500,000 families have purchased some version of the program, with many now visiting regularly instead of only once a year. Memberships start at $7.99 per month, while the premium Gold tier offers discounts of up to 50% on food and beverages.

For the summer season, the company introduced its Summer Fun Pass, providing unlimited visits through Labor Day for as little as $54.99 in select markets.

Drake is also expanding the company’s investment in physical activity through a larger-format concept known as Adventure World. The first location opened in Arlington, Texas, featuring approximately 12,000 square feet of climbing attractions, sports activities, and interactive play designed to get children moving rather than sitting in front of screens. Drake said the concept has generated strong customer satisfaction while complementing the company’s traditional Fun Center locations.

Supporting these investments is a financial turnaround years in the making. The company has spent the past several years restructuring its balance sheet while investing more than $350 million to remodel and modernize nearly 500 locations. CEC Entertainment, which also owns Peter Piper Pizza, emerged from Chapter 11 bankruptcy after the pandemic and has steadily rebuilt its business.

Competition remains intense. Drake identified Dave & Buster’s along with a growing number of indoor adventure parks as key competitors but argued that Chuck E. Cheese maintains an advantage through its long-established brand, exclusive focus on younger children, and ability to operate multiple entertainment formats. He described the company’s philosophy as being “unapologetically kid-first.”

The company is also pursuing international growth, with plans to enter the United Kingdom while expanding into markets including Australia and Egypt. Drake said the company’s birthday-party model, family-friendly environment, and recognizable characters translate well internationally, while menus and attractions can be tailored to local tastes.

For families facing higher prices for dining and entertainment, Drake believes affordable memberships, value-focused birthday packages, and more activities under one roof will encourage repeat visits and strengthen customer loyalty as the company enters its next phase of growth.

JBizNews Desk | New York
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American car buyers sent a clear message during the second quarter: they want better fuel economy without giving up the convenience of a gasoline engine. As automakers reported U.S. sales Wednesday, July 1, companies with strong hybrid lineups generally outperformed rivals that relied more heavily on fully electric vehicles.

Toyota Motor reported a 1.1% increase in second-quarter U.S. sales, driven by approximately 20% growth in hybrid and other electrified vehicles. The results reinforced Toyota’s long-held strategy of expanding hybrid offerings while many competitors focused primarily on battery-electric vehicles.

The contrast was especially noticeable at General Motors, which reported a 4.2% decline in quarterly U.S. sales, delivering 714,896 vehicles compared with 746,588 during the same period a year ago. While GM has invested billions of dollars in electric vehicles, Toyota has continued expanding its hybrid lineup, giving buyers more options at a time when many consumers remain hesitant to switch entirely to EVs.

Industry analysts say that strategy is beginning to reshape the competitive landscape. According to Cox Automotive, Toyota has narrowed the sales gap with GM to its smallest level since 2021, when Toyota briefly became America’s top-selling automaker during pandemic-related supply shortages. Aside from that unusual year, GM has led the U.S. market every year since 1931.

For consumers, hybrids have become an attractive middle ground. They deliver significantly better fuel economy than traditional gasoline vehicles without requiring charging stations or long charging times. With gasoline prices remaining elevated for much of the year and the federal $7,500 tax credit for many electric vehicles no longer available, many buyers are finding hybrids to be the most practical choice.

The broader industry produced mixed results. Stellantis, the parent company of Chrysler, reported a 5.9% increase in sales, while Nissan posted a 9.6% gain. Honda, Hyundai, and Volkswagen also reported solid performances, with Hyundai continuing to benefit from strong demand for its hybrid models. Ford, Tesla, and General Motors were among the manufacturers facing the greatest pressure.

Overall industry sales remained relatively stable, with the annual selling pace hovering near 16 million vehicles. But beneath those headline numbers, buyer preferences continue shifting toward vehicles that offer improved fuel economy without asking consumers to fully embrace electric transportation.

Tariffs are creating another challenge for manufacturers. General Motors has estimated that import duties on vehicles, steel, and aluminum could increase its costs by between $2.5 billion and $3.5 billion this year. Those higher costs could eventually be reflected in vehicle prices, adding further pressure to a market where affordability is already stretched.

That affordability challenge continues to grow. The average monthly payment for a new vehicle recently reached a record $777, while buyers are increasingly stretching loan terms to seven years or longer simply to keep monthly payments manageable.

For automakers, the second quarter offered an important lesson. Companies that maintained balanced product portfolios with gasoline, hybrid, and electric vehicles appear to be navigating today’s uncertain market more successfully than manufacturers that moved aggressively toward an all-electric future. Several automakers are now reassessing their long-term product strategies as consumer demand evolves.

For buyers, the current market offers more choices than ever before. Hybrid technology has matured significantly over the past decade, delivering better fuel economy, lower emissions, and fewer compromises than earlier generations. That combination is proving attractive to drivers looking to reduce fuel costs without changing long-established driving habits.

The second quarter ultimately belonged to hybrids. As automakers prepare new product launches and adjust future investment plans, the strongest demand continues to come from vehicles that combine electric efficiency with the familiarity of a gasoline engine. For now, that balance appears to be exactly what many American consumers are looking for.

JBizNews Desk | New York
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Florida Continues to Lead the Nation in Protecting Taxpayer Dollars from Politically Biased Media Monitors

Florida Gov. Ron DeSantis signed the state’s $117.6 billion budget for the 2026–2027 fiscal year on Monday, and buried inside the spending plan is a rule that decides which companies can and cannot get paid with Florida tax dollars. For the second year in a row, the budget blocks state agencies from hiring advertising or marketing firms that rate news outlets for bias or reliability.

The target is a small but growing industry. Companies like NewsGuard, Ad Fontes Media and the Global Disinformation Index score news sites on how trustworthy they judge those sites to be. Big advertisers and ad agencies often use those scores to decide where to place ads, steering money toward outlets that rate well and away from ones that rate poorly.

Florida’s new rule says state agencies can no longer do business with any advertising agency or contractor that acts as or uses the services of media reliability and bias monitors. In plain English, if an ad firm wants Florida’s advertising business, it cannot rely on those rating systems to determine where the state’s ads are placed.

The Independent Media Council, a coalition of conservative and independent news organizations, praised the move. Spokesperson Christine Czernejewski said taxpayer-funded advertising should reach as many people as possible rather than being filtered through what she called ideological gatekeepers. The council also credited House Speaker Daniel Perez and state Sen. Ed Hooper for championing the measure.

Supporters argue the rating firms are not the neutral referees they claim to be. They point to studies, including research from the Media Research Center, which reported that NewsGuard awarded higher average ratings to left-leaning publications than to right-leaning outlets. Critics contend that a poor rating can quietly reduce a news organization’s advertising revenue without any law ever being passed.

There is significant money behind the debate. NewsGuard developed its “Misinformation Fingerprints” tool with assistance from a $750,000 grant from the U.S. Department of Defense, then marketed the technology to social media platforms, artificial intelligence developers and technology companies. That federal relationship later drew scrutiny when the U.S. House Oversight Committee opened an investigation in 2024, citing concerns about potential impacts on protected First Amendment speech.

The companies affected by the measure see the issue differently. Vanessa Otero, founder and chief executive of Ad Fontes Media, has argued that laws like Florida’s may infringe upon the free-speech rights of private businesses by discouraging constitutionally protected business practices and chilling the speech of advertising agencies. She has said Ad Fontes will continue operating under its existing model.

At its core, the dispute centers on how billions of dollars in advertising are directed. Advertising agencies have long relied on “brand safety” tools to keep clients’ advertisements away from content they consider risky, and media-rating firms have increasingly become part of that process. Florida is now removing state advertising dollars from that system, and it is not the only state moving in that direction.

West Virginia enacted a similar measure this year through its First Amendment Preservation Act, and Congress has also considered similar restrictions in recent National Defense Authorization Act legislation, reflecting growing scrutiny in Washington over the government’s relationship with media-rating firms. The private sector has shifted as well. Advertising giant Omnicom Group agreed, as part of its merger with IPG, not to engage in unlawful collusion to direct advertising away from publishers based on political or ideological viewpoints.

The Florida provision did not emerge in a vacuum. According to reporting by Florida Politics and Jason Garcia of Seeking Rents, the original proposal followed lobbying efforts by Newsmax, which receives relatively low scores from rating organizations such as NewsGuard. A low rating can discourage advertisers from placing ads with a news outlet, and Newsmax last year paid more than $100 million to settle two separate defamation lawsuits. Supporters of the Florida measure argue those issues are separate from the state’s policy, maintaining that the law is about ensuring taxpayer dollars are not allocated using ideological media-rating systems.

The provision is narrowly written. It does not apply to audience measurement companies or organizations that compile readership and viewership data. Instead, it applies only to contractors whose primary function is evaluating the factual accuracy, political bias or alleged misinformation of news organizations. Like last year’s language, the provision is included in the annual budget and must be renewed in future budgets to remain in effect.

For now, Florida’s message is clear: companies that rate the news will not receive state advertising dollars, and businesses seeking Florida’s advertising contracts will have to decide whether to continue relying on those rating services. Whether other states adopt similar policies—or whether the restrictions are ultimately challenged in court—could shape how government advertising dollars are spent for years to come.

JBizNews Desk
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Americans felt slightly better about the economy in June, mostly because gas prices came down. The University of Michigan said its final Index of Consumer Sentiment rose to 49.5, up from May’s all-time low of 44.8, with survey director Joanne Hsu crediting relief at the pump for the rebound.

It was the first increase since February, before the U.S.-Israeli war with Iran pushed global energy prices higher.

The improvement was real but modest, and the survey makes clear people are still unhappy. Sentiment remains about 13% below January and roughly 19% below a year ago. For the third straight month, more than half of consumers brought up high prices on their own as a drag on their finances, Hsu said.

The gas-price story is central. The national average retail gasoline price dropped to about $4.11 from $4.56 at its recent peak, according to AAA. Prices at the pump had reached near-historic highs after the conflict led to the near-closure of the Strait of Hormuz, the waterway that moves a large share of the world’s oil. That spike had driven two straight record-low sentiment readings.

Lower-income households drove the June bounce. Hsu said those consumers posted a particularly strong increase, which makes sense because gasoline takes up a bigger share of their budgets. When the price of a tank of gas falls, families living closest to the edge feel it first.

But the relief has limits, and inflation is still the top worry. Year-ahead inflation expectations edged down to 4.6% from 4.8%, while long-run expectations fell to 3.4% from 3.9%. Both are still well above the levels seen before the Iran conflict began. Hsu said consumers welcomed cheaper gas but remain worried that high prices overall will keep eroding their living standards.

A few other forces helped. The job market stayed solid, with three straight months of better-than-expected job growth and a stable unemployment rate, which likely added to the better mood. The expectations gauge climbed to its highest level in three months as fears about the long-term fallout from the war eased.

There is also a split running underneath the headline number, and it matters for businesses trying to read their customers. Hsu noted that the soaring stock market is lifting personal finances—but mainly for consumers who hold the largest stock portfolios. That leaves a familiar divide: wealthier households cushioned by market gains, and everyone else watching grocery and gas receipts.

For retailers, restaurants and service businesses, the signal is mixed. Sentiment is off the floor, lower-income shoppers have a bit more breathing room as fuel costs fall, and a steady job market keeps paychecks coming. But with the cost of living still front of mind for most households, spending is likely to stay cautious on anything that isn’t essential.

The bottom line is that one month of cheaper gas was enough to stop the slide, but not enough to make people feel good. Even with the gain, consumers remain far more downbeat than they were before the war. The next move in sentiment will likely follow the same thing that drove this one—what happens at the pump.

JBizNews Desk | New York

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The World Bank said Monday it will eliminate its formal climate lending targets, marking a major policy shift that follows months of pressure from the United States, the institution’s largest shareholder. While the bank extended its overall climate change policy framework indefinitely, it will no longer require a fixed percentage of its financing to be dedicated to climate-related projects.

“We will retire the 45-percent climate co-benefits target and the 35-percent target,” the World Bank Group said in a statement, adding that it will instead “complete our shift from inputs to outcomes to maximize development impact.”

In practical terms, the bank will no longer promise that a set share of its annual lending must support climate-related projects. Instead, future financing decisions will be guided by the priorities and development needs of individual member countries.

The targets had become a central part of the bank’s strategy over the past several years. Its previous five-year framework called for 35% of annual financing to generate climate benefits by 2025. World Bank President Ajay Banga later raised that goal to 45% during the 2023 United Nations climate conference.

Under that framework, the bank’s climate financing nearly doubled—from approximately $21 billion in 2021 to $39 billion in 2025—making it the world’s largest provider of international climate financing for developing nations.

The policy change represents a significant victory for the Trump administration.

Treasury Secretary Scott Bessent had urged the World Bank to abandon what he described as a “distortionary” climate finance target, arguing that it diverted resources from poverty reduction and economic growth. The Treasury Department welcomed the expiration of the climate targets and has encouraged the bank to place greater emphasis on expanding access to reliable energy, including natural gas projects. The United States has also withdrawn from the Paris climate agreement.

For the global economy, the decision carries significant implications because the World Bank helps finance infrastructure, energy, transportation, agriculture, manufacturing, and industrial development across emerging markets. Its lending priorities often influence what types of projects governments pursue and private investors support.

Supporters of the policy shift argue that removing rigid climate targets gives developing countries greater flexibility to finance the projects they believe are most urgently needed, including conventional energy infrastructure capable of supporting economic growth and expanding electricity access.

Critics argue the opposite.

Environmental groups warn that eliminating formal targets could gradually reduce funding for climate projects while making it more difficult to measure progress and hold the institution accountable.

“The current plan, while imperfect, provides a basis for accountability,” said Rajneesh Bhuee of the advocacy organization Recourse.

The decision also highlighted divisions among the bank’s shareholders. While the United States pressed for removing the lending targets, several European governments, joined by some Latin American countries and small island nations, favored maintaining a formal climate framework. Many of those countries continue supporting the broader international goal of mobilizing $300 billion annually in climate finance for developing economies by 2035.

Even before Monday’s announcement, the policy had faced criticism from multiple directions. Some analysts argued that much of the increase in climate financing had been directed toward projects containing only limited climate-related components, while others maintained that measurable targets remained essential regardless of imperfections.

Most economists do not expect climate lending to decline immediately. However, the absence of formal benchmarks could gradually reduce internal incentives to prioritize climate investments and make it harder for governments and investors to track how development funding is allocated.

For developing countries seeking financing, Monday’s decision signals a shift away from fixed climate commitments and toward greater flexibility based on national priorities. It also underscores the growing influence of the United States in reshaping how one of the world’s most important development institutions allocates tens of billions of dollars each year.

JBizNews Washington Desk
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Extreme heat and severe weather have become one of the biggest financial risks facing the data centers powering the artificial-intelligence boom, insurers and operators are warning, as a record heatwave bakes Europe and strains power grids worldwide. According to insurance company Zurich, severe weather has become the leading cause of losses within its U.S. data center builders’ risk portfolio over the past three years, now accounting for roughly one-third of its losses in the sector.

“Severe weather is no longer something that can be treated as a background exposure,” said Patrick McBride, Zurich’s head of international construction. “It is one of the first things we and the owners we work with look at.” His comment captures a shift in how the industry views the weather: not as an occasional disruption, but as a core threat to a buildout costing hundreds of billions of dollars.

The trouble with extreme heat is that it hits twice. Cooling accounts for roughly 40% of a data center’s energy use even under normal conditions, and that share rises during heatwaves—precisely when air conditioners are already putting enormous pressure on electric grids.

“Data centers need the most energy exactly when the grid has the least available to give,” said Mishal Thadani, chief executive and co-founder of AI software platform Rhizome, which helps utilities identify climate vulnerabilities. He pointed to Turin, Italy, where temperatures approaching 100 degrees Fahrenheit placed underground power cables under thermal stress and contributed to repeated blackouts before additional AI facilities that each consume as much electricity as roughly 100,000 homes are even connected.

Compounding the challenge is where the industry is building. This year, 64% of global data center capacity under construction is located outside traditional hubs such as Northern Virginia, moving instead into rapidly growing markets including West Texas, Tennessee, Wisconsin, and Ohio. Land and electricity are often less expensive in those areas, but many also face elevated risks from tornadoes, hail, high winds, flooding, or wildfires.

The scale of the exposure is enormous. Climate-risk analytics firm First Street found that 79% of global data center capacity faces elevated risks from acute climate hazards. A separate analysis by MS Amlin estimated that 56% of planned U.S. data centers—representing nearly $800 billion in investment—are located in states highly exposed to hurricanes, severe storms, earthquakes, or winter weather.

For businesses, the risk ultimately comes down to money. Weather-related disruptions increase insurance claims, construction costs, repair expenses, and operational downtime. If insurers become less willing to underwrite large concentrations of expensive infrastructure in climate-vulnerable regions, premiums could rise significantly or coverage could become harder to obtain.

“It’s not a matter of if climate risks will impact the digital infrastructure revolution,” said Joe Macejak, U.S. property digital infrastructure leader at Marsh Risk. He warned that unmanaged climate risks “pose a threat to the capital stacks that are fueling the AI-driven data center revolution.”

Technology companies are responding by redesigning their facilities. Microsoft says it engineers its data centers to operate reliably across a wide range of environmental conditions through careful site selection, redundant systems, and real-time monitoring. Nvidia said its latest AI servers can operate with cooling liquid temperatures of 45 degrees Celsius, and that increasing chiller temperatures by just one degree can reduce cooling-energy costs by about 4%. Engineers are also developing more efficient liquid-cooling systems that move heat away from advanced AI chips more effectively.

The implications extend far beyond the technology industry. Modern AI infrastructure increasingly supports hospitals, banks, manufacturers, communications networks, retailers, and government agencies. A major outage caused by extreme weather can quickly ripple across the broader economy.

The artificial-intelligence boom may be creating unprecedented demand for computing power, but at its foundation the industry remains dependent on physical infrastructure—buildings, transmission lines, water, cooling systems, and reliable electricity. As climate risks intensify, the weather is becoming one of the biggest tests of whether that infrastructure can keep pace with the AI revolution.

JBizNews Technology Desk
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Spot jet fuel prices have fallen about 40% from their April peak, according to data from Airlines for America, the airline industry’s trade association. But despite the sharp decline in one of their largest operating costs, major U.S. airlines say they have little intention of lowering ticket prices as demand for travel remains strong.

Speaking to investors this spring, Delta Air Lines Chief Executive Ed Bastian said fares are currently at the “right level,” signaling that lower fuel costs will not necessarily translate into cheaper airfare for consumers.

For travelers planning summer vacations, the numbers tell the story.

According to the Bureau of Labor Statistics, airfares were nearly 27% higher in May than a year earlier. Average ticket prices climbed to roughly $1,105 in early May before easing to about $980 in June, but they remain significantly above last year’s levels.

Fuel typically accounts for 20% to 25% of an airline’s operating expenses. The Argus U.S. Jet Fuel Index stood near $2.91 per gallon late last week—down sharply from April’s highs but still above prices seen earlier this year.

So why haven’t ticket prices followed fuel costs lower?

The answer is simple: supply and demand.

Airlines reduced flight schedules earlier this year when fuel prices surged, leaving fewer seats available during the busy summer travel season. At the same time, leisure travel has remained resilient, allowing carriers to maintain elevated pricing.

Independent energy analyst Tom Kloza said lower fuel prices resulted partly from airlines reducing flights, which lowered demand for jet fuel, while U.S. refineries simultaneously increased production to capitalize on earlier high prices.

Airline executives have been unusually direct about their pricing strategy.

United Airlines Chief Commercial Officer Andrew Nocella told investors that the longer travelers continue paying today’s fares, the more likely those higher prices become permanent.

Aviation analyst Michael Boyd offered an even simpler explanation: if customers continue buying tickets at current prices, airlines have little incentive to reduce them.

Additional fees appear even less likely to fall.

Industry analyst Zach Griff, publisher of the aviation newsletter From the Tray Table, said baggage fees and other ancillary charges are expected to remain elevated regardless of fuel costs because they have become an increasingly important source of airline revenue.

Some seasonal relief may arrive later this year.

Historically, airfare declines after the peak summer travel season ends, although analysts expect fall ticket prices to remain above last year’s levels despite lower fuel costs.

Airlines also argue they are still recovering from an extraordinarily difficult first half of the year.

A global jet-fuel supply crunch tied to tensions involving the United States and Iran drove operating costs sharply higher earlier this year, forcing carriers to cut flights and absorb higher expenses. According to the Bureau of Transportation Statistics, U.S. airlines collectively lost approximately $1 billion during the first quarter of 2026.

Although fuel prices have retreated, the supply chain has not fully normalized. Shipping through the Strait of Hormuz remains constrained, and aviation analysts say global fuel markets could require months to stabilize completely.

For travelers, the lesson is straightforward.

Falling oil or jet-fuel prices do not automatically lead to lower ticket prices. Airlines continue pricing flights based primarily on demand, available capacity, and overall profitability rather than daily fuel costs.

For now, travelers looking to save money are more likely to find lower fares by flying during off-peak periods later this year than by waiting for airlines to pass fuel savings along to consumers.

JBizNews Airlines Desk
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A new report released Monday by the Cybersafety Research Center — a joint initiative of New York University and Northeastern University — found that most of the child-safety tools promoted by major social media platforms failed to work as advertised, raising new questions about online protections for young users.

The research team, led by Laura Edelson, an assistant professor of computer science at Northeastern University, tested 86 youth safety features across TikTok, Instagram, Snapchat, and YouTube. Only 35 worked as promised. The remaining 51 either failed outright, were difficult to access, or could not be triggered despite following the companies’ published instructions. The report is titled “Broken, Buried, Missing.”

Researchers created both teen and adult test accounts on each platform, evaluating whether the safety features actually functioned as described and whether young users could realistically find and use them.

The findings were stark.

Nine safety features were classified as “missing” because researchers could not activate them at all. Thirty-four were labeled “broken,” meaning they failed to work properly or could easily be bypassed. Twelve of those were both broken and deeply buried within settings menus, while another eight technically worked but were hidden where most teenagers were unlikely to find them.

Among the most troubling findings involved TikTok. Researchers said the platform is designed to prevent minors from searching for content related to eating disorders and self-harm, yet its recommendation system instead suggested pro-anorexia search terms and self-harm phrases to a teen account.

Edelson emphasized those recommendations came directly from TikTok’s own algorithm rather than from search terms entered by the research team.

The study also found every platform struggled to moderate abusive behavior.

Safety tools designed to discourage bullying or harmful interactions failed across all four services. An Instagram feature intended to prompt users to reconsider before posting abusive comments never activated when researchers used a test account to harass another user. Many moderation systems relied heavily on blocked-word lists, allowing users to bypass protections simply by misspelling offensive words.

Features intended to limit excessive screen time also performed poorly, functioning successfully only about one-third of the time during testing.

The findings carry significant business implications beyond child safety.

For years, major social media companies have cited expanding safety features as evidence they can effectively regulate themselves without additional government intervention. The report arrives as lawmakers continue debating new online child-protection legislation, with technology executives expected to face renewed congressional scrutiny later this year.

If regulators conclude existing safeguards are ineffective, technology companies could face stricter compliance requirements and additional regulatory costs.

The platforms disputed many of the findings.

A YouTube spokesperson said the company has spent more than a decade developing parental controls and cited survey data showing most parents who use its supervised experiences report greater confidence in their children’s online activity.

A TikTok U.S. spokesperson said teen accounts include more than 50 safety settings enabled by default, maintained that the company’s internal testing confirms those features function properly, and offered to demonstrate them to the researchers.

The report also highlighted several positive examples.

Instagram automatically makes new teen accounts private, while TikTok’s experience for users under age 13 restricts commenting and direct messaging.

Edelson said those approaches point toward a simpler solution: make the safest settings the default rather than expecting parents and children to locate and activate them manually.

For parents, the report serves as a reminder that enabling a safety feature does not necessarily guarantee protection. For technology companies, it adds to growing pressure to demonstrate not only that safety tools exist, but that they consistently work in real-world conditions.

JBizNews Technology Desk
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The U.S. economy is increasingly moving along two different paths, with economists saying the stock market’s powerful rally is benefiting wealthy households far more than the average American. As of Monday, June 29, 2026, a small share of higher-income households is driving much of the nation’s discretionary spending while many middle- and lower-income families continue facing tighter budgets.

The numbers behind the divide are striking.

The S&P 500 has gained approximately 22% over the past year, 76% since 2023, and more than 327% over the past decade. Those gains have significantly increased household wealth for investors who own stocks, encouraging greater spending on travel, dining, luxury goods, and other discretionary purchases.

Michael Pearce, chief U.S. economist at Oxford Economics, said rising stock prices have become a major driver of spending among older and wealthier households, which account for more than half of discretionary consumer spending.

Because stock ownership is heavily concentrated among higher-income Americans, the spending generated by those gains is concentrated as well.

Joe Brusuelas, chief economist at RSM US, estimates that roughly 75% of the consumer spending fueled by the recent market rally comes from the nation’s top 20% of earners. He estimates the wealth effect created by higher stock prices generated approximately $53 billion in additional consumer spending over the past year.

According to the Federal Reserve Bank of Dallas, the highest-earning 20% of households now account for roughly 57% of all consumer spending in the United States.

Much of that financial strength extends beyond the stock market.