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Two big cases underway over Trump's higher education policy. Here are the key takeaways

Two big cases underway over Trump's higher education policy. Here are the key takeaways

USA Today16 hours ago
BOSTON ― A federal courthouse was the epicenter of the legal world on July 21 as federal judges heard arguments in two cases surrounding the Trump administration's efforts to revoke federal funding from Harvard University and to deport foreign-born student protesters for pro-Palestinian activism.
In courtroom 18 at the John Joseph Moakley U.S. Courthouse, U.S. District Judge William Young heard closing arguments in American Association of University Professors (AAUP) v. Rubio. The organization's chapters at several universities, as well as the Middle East Studies Association, sued Secretary of State Marco Rubio in March over what it described as an "ideological deportation policy" the administration was using to retaliate against noncitizens for pro-Palestinian speech.
Steps away, U.S. District Judge Allison Burroughs heard oral arguments in Harvard's lawsuit against the administration over the more than $2.5 billion in federal funding it pulled from the school, citing its alleged inaction on antisemitism.
The First Amendment lies at the heart of both cases, which could have significant implications for the future of higher education and free speech in the U.S.
Here are key takeaways from the trials.
Research, civil rights and lives are at stake, attorneys say
Harvard's attorneys argued that the loss of federal funding would significantly damage the school's ability to conduct research that serves a public benefit while not meaningfully addressing antisemitism, NPR reported.
The Trump administration, on the other hand, said Harvard's Jewish students are harmed by the school's alleged inaction on antisemitism, which it has said amounts to a violation of federal civil rights law.
The Knight First Amendment Institute at Columbia University, along with co-counsel Sher Tremonte law firm, sued Secretary of State Marco Rubio and the Trump administration on behalf of the association's chapters at several universities, including Harvard, and the Middle East Studies Association in March.
In AAUP v. Rubio, attorneys from the Knight First Amendment Institute at Columbia University and Sher Tremonte law firm argued that the Trump administration's 'ideological deportation policy' affected not only the activists who have been arrested thus far but created a chilling effect on the free speech of noncitizen students and faculty.
The government's attorneys disputed the existence of such a policy. If it did exist, lawyer William Kanellis said, 'you'd see many more arrests.'
Judges questioned some arguments
Both judges were skeptical of some of the arguments attorneys attempted to make in their courtrooms.
The notion that the government has the authority to slash Harvard's federal funding for any reason was a 'major stumbling block for me,' Burroughs said. She said there would be 'staggering' implications for constitutional law if the government had the power to make such decisions 'for reasons oriented around speech.'
Burroughs also questioned how revoking Harvard's federal grants contributed to the government's stated objective of combatting antisemitism at the university, as the Harvard Crimson reported.
Young, meanwhile, appeared skeptical of the AAUP's argument that the Trump administration created and implemented a new 'ideological deportation' policy.
He also questioned the plaintiff's arguments surrounding Canary Mission, an organization that says it 'documents individuals and organizations that promote hatred of the USA, Israel and Jews on North American college campuses and beyond.' The plaintiff's attorneys characterized it as an extremist group the government relied upon to identify noncitizens for investigation and arrest.
Young was skeptical of the attorneys' characterization of the group and said it's 'perfectly appropriate for the government to take leads from any source.'
First Amendment issues at the heart of both cases
Alexandra Conlon, a representing the plaintiffs in the deportation case, said that by revoking visas and green cards based on noncitizens' pro-Palestinian activism, the federal government was 'systematically violating the First Amendment' and seeking to chill speech it disagrees with.
On the first day of the trial, Justice Department attorney Victoria Santora said the First Amendment applies to both citizens and noncitizens alike. But she later backtracked to say 'there are nuances to the First Amendment,' Politico reported.
Department of Justice attorney Ethan Kanter continued that argument July 21, saying noncitizens do not have First Amendment rights to the same extent as U.S. citizens. While they may have such rights in some capacity, he said, they are 'context dependent and in relation to the compelling government interest at play.'
Lawyer Steven P. Lehotsky, representing Harvard in the funding lawsuit, said the administration's actions against the university reflect a 'blatant, unrepentant violation of the First Amendment,' the Harvard Crimson reported.
Administration's moves are 'part of a broader attack'
Ramya Krishnan, a Knight First Amendment Institute attorney representing the AAUP in the deportation case, said both that case and the one over Harvard's federal funding were part of the Trump administration's higher education "power grab."
'These are part of a broader attack on higher education in this country in weakening the independence of these institutions, in undermining them as a site for discourse and intellectual inquiry," she said, "and I think that people should be very worried about that.'
The Trump administration has accused schools of engaging in "exploitative and unlawful practices" and said its steps to overhaul higher education would "rebuild public trust" in such institutions.
Burroughs said she would issue an opinion in the Harvard case soon after oral arguments concluded on July 21, the Harvard Crimson reported. The school has requested a ruling by Sept. 3, which is its deadline for submitting paperwork to close out its federal grant funding.
Young did not offer a timeline for issuing his opinion in the deportation case.
BrieAnna Frank is a First Amendment Reporting Fellow at USA TODAY. Reach her at bjfrank@usatoday.com.
USA TODAY's coverage of First Amendment issues is funded through a collaboration between the Freedom Forum and Journalism Funding Partners. Funders do not provide editorial input.
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The solar equipment maker said Trump's import tariffs had hit its gross margin, after the US in April finalized steep duties on solar cells from Southeast Asia. At the same time, Enphase faces the fallout from Trump's cuts to tax incentives in the renewable energy sector. It said it expects the US residential solar market to shrink 20% next year as tax credits for homeowners end under Trump's sweeping budget legislation. Bloomberg reports: Read more here. Trending tickers: Krispy Kreme, GoPro and Constellation Energy Corporation Here are some top stocks trending on Yahoo Finance in premarket trading: Krispy Kreme (DNUT)`stock rose 22% before the bell boosted by their names trending on social media a day after retail traders snapped up Kohl's (KSS) shares. Camera maker GoPro (GPRO) shares rose 43%, per Reuters short interest in the stock recently stood at 7.7%. Investor interest in heavily shorted stocks has grown after Kohl's jumped 38% on Tuesday amid heavy retail buying. 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The grid operator set record prices at $329.17 per megawatt-day, raising total capacity costs to $16.1 billion from $14.7 billion last year. Tesla Q2 earnings preview: 3 things to watch Tesla (TSLA) is slated to report second quarter earnings on Wednesday against an uncertain backdrop for its core auto business and robotaxi rollout. Tesla stock pared some of its losses earlier in the year, as tariffs and a volatile relationship between CEO Elon Musk and President Trump weighed on the company. But the stock is still down about 17% year to date. Yahoo Finance's Pras Subramanian previews three key areas to watch when the EV maker reports: Read more here. Tesla (TSLA) is slated to report second quarter earnings on Wednesday against an uncertain backdrop for its core auto business and robotaxi rollout. Tesla stock pared some of its losses earlier in the year, as tariffs and a volatile relationship between CEO Elon Musk and President Trump weighed on the company. But the stock is still down about 17% year to date. Yahoo Finance's Pras Subramanian previews three key areas to watch when the EV maker reports: Read more here. Meme stocks are on the move again The return of meme stock mania doesn't appear like it will end on Wednesday. Some of the highest-trending ticker pages on Yahoo Finance this morning are meme crowd favorites Kohl's (KSS), Rocket (RKT), and Krispy Kreme (DNUT). As of 6 a.m. ET, Rocket and Krispy Kreme are each up double-digit percentages in premarket. "The phenomenon of meme stocks isn't going away. I feel like the genie's out of the bottle. And it's just become a way for a certain subset of everyday investors to trade, and that's completely fine," Ritholtz Wealth Management strategist Callie Cox said on Yahoo Finance's Opening Bid (watch below). Makes sense! The return of meme stock mania doesn't appear like it will end on Wednesday. Some of the highest-trending ticker pages on Yahoo Finance this morning are meme crowd favorites Kohl's (KSS), Rocket (RKT), and Krispy Kreme (DNUT). As of 6 a.m. ET, Rocket and Krispy Kreme are each up double-digit percentages in premarket. "The phenomenon of meme stocks isn't going away. I feel like the genie's out of the bottle. And it's just become a way for a certain subset of everyday investors to trade, and that's completely fine," Ritholtz Wealth Management strategist Callie Cox said on Yahoo Finance's Opening Bid (watch below). Makes sense! Texas Instruments stock plunges as guidance disappoints Given how hard the stock market has rallied, any company reporting guidance that is perceived as subpar will get punished. A good example of that will play out with Texas Instruments (TXN) in today's session. The stock is getting pounded premarket, down 12% after third quarter guidance on earnings per share that was 14 cents below consensus on the low end. TXN blamed weak demand in the auto market (heard the same in GM's (GM) outlook on Tuesday). Executives at the key chipmaker for producers of cars and factory equipment said they didn't know how much of the second quarter's jump in revenue was down to customers trying to get ahead of tariffs, per Reuters. Whatever the case, TXN's outlook is putting pressure on similar names in the space: Microchip (MCHP), Analog Devices (ADI), NXP Semiconductors (NXPI), and On Semi (ON). Given how hard the stock market has rallied, any company reporting guidance that is perceived as subpar will get punished. A good example of that will play out with Texas Instruments (TXN) in today's session. The stock is getting pounded premarket, down 12% after third quarter guidance on earnings per share that was 14 cents below consensus on the low end. TXN blamed weak demand in the auto market (heard the same in GM's (GM) outlook on Tuesday). Executives at the key chipmaker for producers of cars and factory equipment said they didn't know how much of the second quarter's jump in revenue was down to customers trying to get ahead of tariffs, per Reuters. Whatever the case, TXN's outlook is putting pressure on similar names in the space: Microchip (MCHP), Analog Devices (ADI), NXP Semiconductors (NXPI), and On Semi (ON). Japanese auto stocks surge as US announces lower-than-expected tariffs Shares of Japanese automakers pumped after U.S. President Donald Trump announced a trade deal with Japan, lowering the previously discussed 25% auto tariffs on Japanese vehicles to 15%. Honda (HMC) surged 9.8%, Toyota (TM) jumped 13.9%, Nissan (7222.T) gained over 5%, and Mazda (7261.T) soared 17.7%. Mitsubishi Motors (7211.T) rose over 12%. According to Japan's NHK, the revised tariff structure includes a 12.5% cut plus a 2.5% 'Most Favored Nation' base rate. The move comes as Japanese auto exports to the US have suffered, plunging 26.7% in June. Trump hailed the deal as the 'largest Deal ever,' claiming Japan would invest $550 billion in the US and allow greater access to its markets, including for American autos, trucks, and agricultural goods. Shares of Japanese automakers pumped after U.S. President Donald Trump announced a trade deal with Japan, lowering the previously discussed 25% auto tariffs on Japanese vehicles to 15%. Honda (HMC) surged 9.8%, Toyota (TM) jumped 13.9%, Nissan (7222.T) gained over 5%, and Mazda (7261.T) soared 17.7%. Mitsubishi Motors (7211.T) rose over 12%. According to Japan's NHK, the revised tariff structure includes a 12.5% cut plus a 2.5% 'Most Favored Nation' base rate. The move comes as Japanese auto exports to the US have suffered, plunging 26.7% in June. Trump hailed the deal as the 'largest Deal ever,' claiming Japan would invest $550 billion in the US and allow greater access to its markets, including for American autos, trucks, and agricultural goods. Trending tickers in after-hours trading Texas Instruments, Inc. (TXN) Texas Instruments, a leading chipmaker with the broadest product list in the field, saw its share value drop over 11.6% in after-hours trading. The stock has seen 46% gains in the year to date following a boom in purchases with each wave of tariff announcements. The rapid cooling-off occurred when the executive team announced they were unaware how much of the increase in revenue had been dependent on consumers attempting to circumvent the hike in prices from Trump's tariffs. Enphase Energy, Inc. (ENPH) Solar equipment provider Enphase Energy saw a drop of over 7.2% in the company's stock value in extended trading. With 5% of the market share in the solar equipment field Enphase acts as an early indicator for the impact that Trump's removal of tax credits will have upon the industry. Enphase are pointing towards a 20% drop in the residential market. Read more here. Analog Devices, Inc. (ADI) Shares in semiconductor maker Analog Devices saw a drop of over 4.1% after-hours, erasing gains from the month so far. The company specializes in chips that convert real world input into electrical signals, processing sound, light, temperature, pressure and motion. Investors have been eyeing ADI's earnings reports, still not due for another month. Texas Instruments, Inc. (TXN) Texas Instruments, a leading chipmaker with the broadest product list in the field, saw its share value drop over 11.6% in after-hours trading. The stock has seen 46% gains in the year to date following a boom in purchases with each wave of tariff announcements. The rapid cooling-off occurred when the executive team announced they were unaware how much of the increase in revenue had been dependent on consumers attempting to circumvent the hike in prices from Trump's tariffs. Enphase Energy, Inc. (ENPH) Solar equipment provider Enphase Energy saw a drop of over 7.2% in the company's stock value in extended trading. With 5% of the market share in the solar equipment field Enphase acts as an early indicator for the impact that Trump's removal of tax credits will have upon the industry. Enphase are pointing towards a 20% drop in the residential market. Read more here. Analog Devices, Inc. (ADI) Shares in semiconductor maker Analog Devices saw a drop of over 4.1% after-hours, erasing gains from the month so far. The company specializes in chips that convert real world input into electrical signals, processing sound, light, temperature, pressure and motion. Investors have been eyeing ADI's earnings reports, still not due for another month. 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For hope on climate change, UN chief is putting his faith in market forces
For hope on climate change, UN chief is putting his faith in market forces

San Francisco Chronicle​

time7 minutes ago

  • San Francisco Chronicle​

For hope on climate change, UN chief is putting his faith in market forces

NEW YORK (AP) — For nearly a decade United Nations Secretary-General Antonio Guterres has been using science to warn about evermore dangerous climate change in increasingly urgent tones. Now he's enlisting something seemingly more important to the world's powerful: Money. In an exclusive interview with The Associated Press, Guterres hailed the power of market forces in what he repeatedly called 'a battle' to save the planet. He pointed to two new UN reports showing the plummeting cost of solar and wind power and the growing generation and capacity of those green energy sources. He warned those who cling to fossil fuels that they could go broke doing it. 'Science and the economy show the way,' Guterres said in a 20-minute interview in his 38th-floor conference room overlooking the New York skyline. 'What we need is the political will to take the decisions that are necessary in regulatory frameworks, in financial aspects, in other policy dimensions. Governments need to take decisions not to be an obstacle to the natural trend to accelerate the renewables transition.' That means by the end of the fall governments need to come up with new plans to fight climate change that are compatible with the global goal of limiting warming and ones that apply to the their entire economy and include all greenhouse gases, Guterres said. But don't expect one from the United States. President Donald Trump has pulled out of the landmark Paris climate agreement, slashed efforts to boost renewable energy and made fossil fuels a priority, including the dirtiest one in terms of climate and health, coal. 'Obviously, the (Trump) administration in itself is an obstacle, but there are others. The government in the U.S. doesn't control everything,' Guterres said. Sure, Trump pulled out of the Paris accord, but many states and cities are trying to live up to the Biden administration's climate-saving goals by reducing the burning of coal, oil and natural gas that release heat-trapping gases, Guterres said. Invest in fossil fuels, risk stranded assets? 'People do not want to lose money. People do not want to make investments in what will become stranded assets,' Guterres said. 'And I believe that even in the United States, we will go on seeing a reduction of emissions, I have no doubt about it.' He said any new investments in exploring for new fossil fuel deposits 'will be totally lost' and called them 'just a waste of money.' 'I'm perfectly convinced that we will never be able, in the history of humankind, to spend all the oil and gas that was already discovered,' Guterres said. But amid the hope of the renewable reports, Guterres said the world is still losing its battle on climate change, in danger of permanently passing 1.5 degree Celsius (2.7 degree Fahrenheit) warming since preindustrial times. That threshold is what the Paris agreement set up as a hoped-for global limit to warming 10 years ago. Many scientists have already pronounced the 1.5 threshold dead. Indeed, 2024 passed that mark, though scientists say it requires a 20-year average, not a single year, to consider the threshold breached. A scientific study from researchers who often work with the U.N. last month said the world is spewing so much carbon dioxide that sometime in early 2028, a couple years earlier than once predicted, passing the 1.5 mark will become scientifically inevitable. Guterres: 'We need to go on fighting' even as it looks bleak Guterres hasn't given up on the 1.5 degree goal yet, though he said it looks bad. 'We see the acceleration of different aspects of climate change., rising seas, glaciers melting, heat waves, storms of different kinds," he said. 'We need to go on fighting,' he said. 'I think we are on the right side of history.' Guterres, who spoke to AP after addressing the U.N. Security Council on the Israeli occupation of Gaza, said there's only one way to solve that seemingly intractable issue: An immediate ceasefire, a release of all remaining hostages, access for humanitarian relief and 'paving the way for a serious political process leading to the two-state solution. Some people say the two-state solution is now becoming extremely difficult. Even some saying it's impossible. But the question is, what is the alternative?' Gaza, Ukraine and Sudan are all crises, Guterres said, but climate change is an existential problem for the entire planet. And he said people don't realize how climate-caused droughts and extreme weather can feed poverty and terrorism. He pointed to the Sahel as an example. 'We see that people live in worse and worse conditions, less and less capacity to grow their crops, less and less capital,' he said. 'And this is largely due to climate change.' 'Everything is interlinked: Climate change, artificial intelligence, geopolitical divides, the problems of inequality and injustice,' Guterres said. 'And we need to make sure that we make progress in all of them at the same time.'

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