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Courts tap brakes on Trump's plans for federal workers

Courts tap brakes on Trump's plans for federal workers

Politico10-02-2025

QUICK FIX
THE FRONT LINES: Hundreds of federal workers who are members of the American Federation of Government Employees will be meeting up in downtown D.C. on Monday for the union's annual confab as President Donald Trump has completely upended their lives.
The administration — with help from Elon Musk and his compatriots — has already tried to end the U.S. Agency for International Development and Consumer Finance Protection Bureau as we know it, and even the core functions of Cabinet-level agencies like the Department of Education could also be on the chopping block.
Government workers have vacillated between dejection and defiance as the Trump administration has called into question their work and value.
In some instances, the federal courts have already intervened — as our Kyle Cheney reports — granting several emergency pleas filed by unions and other groups seeking to halt the Trump administration's plans.
A Trump-appointed judge on Friday prevented the White House from placing more than 2,000 USAID workers on leave and ordered reinstatement for hundreds of others. And a judge in New York handcuffed DOGE from accessing a crucial Treasury Department payments system — drawing the disdain of Vice President JD Vance.
However a Republican-appointed judge in D.C. late Friday opted not to immediately restrict DOGE's access to DOL data, despite his misgivings about the possibility of privacy violations as your host reported.
Prior to that ruling, Judge John Bates, an appointee of former President George W. Bush, had urged the Trump administration to hash out a deal with a group of labor unions — including AFGE — who filed the lawsuit that would place guardrails on DOGE while still allowing it to proceed in some fashion. The government appeared open to such an agreement, based on testimony Friday, though talks ultimately broke down that afternoon and Bates' ruling that the unions lacked the necessary legal standing to seek a temporary restraining order suggests they may have overplayed their hand.
A number of congressional Democrats, including Sen. Chris Van Hollen (D-Md.) and Reps. Gerry Connolly(D-Va.),Jamie Raskin(D-Md.) and Del. Eleanor Holmes Norton (D-D.C.), as well as Pennsylvania GOP Rep. Brian Fitzpatrick are scheduled to address the AFGE conference today.
GOOD MORNING. It's Monday, Feb. 10. Welcome back to Morning Shift, your go-to tipsheet on labor and employment-related immigration. Spoons are apparently the new safety pin. Send feedback, tips and exclusives to nniedzwiadek@politico.com and lukenye@politico.com. Follow us on X at @NickNiedz and @Lawrence_Ukenye.
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AROUND THE AGENCIES
LCD LIEUTENANT LATEST: Keith Sonderling, a former top Republican official at the OL and Equal Employment Opportunity Commission, made tens of thousands of dollars after leaving outside of the government last year.
Sonderling, who Trump nominated to serve as deputy Labor secretary under Lori Chavez-DeRemer, reported just over $50,000 in consulting fees according to financial documents and an ethics disclosure released over the weekend by the Office of Government Ethics.
He left the EEOC not long after his term expired last summer (agency rules allow commissioners to stay on in so-called holdover status.)
Sonderling met with several senators last week in their Capitol Hill offices ahead of a possible springtime confirmation hearing. Chavez-DeRemer will appear before the Senate HELP Committee on Wednesday.
More agency news: 'U.S. intelligence, law enforcement candidates face Trump loyalty test,' from The Washington Post.
Even more news: 'The Trump Admin Paused a Workplace Safety Council Established Under Federal Law,' from NOTUS.
Smash cut: 'Secret Service airing recruitment ad from Hollywood director Michael Bay during Super Bowl,' from CNN.
In the Workplace
DOWNSTREAM EFFECTS: Working-age immigrants were a key bulwark for the economy under former President Joe Biden, but now economists are fretting what Trump's crackdown means for the job market, our Sam Sutton reports.
The Labor Department reported Friday that U.S. employers added 143,000 jobs in January, with the jobless rate slipping to 4 percent. The growth in payrolls was lifted by new arrivals whose legal status runs the gamut. The labor force participation rate among foreign-born individuals was 66 percent in January, compared with 61.4 percent among native-born workers, according to the release.
'What happens to net immigration over 2025 is a game changer for what we should expect to see in the payroll employment numbers,' said Wendy Edelberg, a former top economist at the Congressional Budget Office who's now the director of The Hamilton Project and a Brookings Institution senior fellow. 'We should get used to much, much smaller numbers than what we've seen over the last couple of years.'
Trump says his sweeping agenda of deregulation, increased oil production and lower taxes will unlock growth and beat back inflation — an argument strongly endorsed by the American people in the election. But a broad-based crackdown on immigrants could slow the economy's expansion and choke off a supply of workers that Kansas City Fed researchers and others say have alleviated staffing shortages and eased wage pressures.
More workplace news: 'The D.C. Neighborhood Bearing the Brunt of Government Job Cuts,' from The Wall Street Journal.
On the Hill
CHASING DOGE'S TAIL: Virginia Rep. Bobby Scott, the top Democrat on the House Education and Workforce Committee, on Friday asked the Government Accountability Office to investigate the security of IT systems at a trio of agencies including the Labor Department, our Bianca Quillantan reports for Pro subscribers.
'This is a constitutional emergency,' Scott wrote in a letter. 'Insofar as the Inspectors General of both the Departments of Education and Labor have been fired by President Trump, there is now a void of oversight for a very young and inexperienced team and their leader, the world's richest man who operates with 'autonomy almost no one can control,' as they gain dangerously broad powers.'
NOT AS I DO: Rep. Byron Donalds (R-Fla.) flouted House rules by having a surrogate cast his vote while he was out of town to appear as a guest on a comedy TV show, Punchbowl reports.
Donalds is considered a possible gubernatorial candidate in Florida, though as NOTUS reports he is far from the first member of Congress who has bent the rules against having other people cast a vote for them.
One problem: Speaker Mike Johnson has been adamantly against proxy voting — even for members of Congress who have recently given birth, as Rep. Brittany Pettersen (D-Colo.) did last month — in the belief that doing so violates the Constitution.
A judge in Texas last year partially invalidated protections for pregnant workers passed as part of the 2022 omnibus package on the grounds that the House vote utilized proxy voting. That case is set to go before the Fifth Circuit Court of Appeals later this month.
IN THE STATES
ALL POLITICS IS LOCAL: Trump's assault on the federal workforce could upend the Virginia gubernatorial race where many of these workers reside, The Associated Press reports.
With Virginia and New Jersey as the only states that pick their governor the year after the presidential elections, the contests are often closely watched as a harbinger of the following year's midterms and a referendum on the early days of a presidency.
'And dating to 1977, every time a new president has been elected, the following year Virginia has voted in a governor from the opposite party,' the AP reports.
EMERGENCY (UN-PREPAREDNESS): The Trump administration's federal hiring freeze is hindering efforts to bring in new seasonal firefighters just weeks after the devastation across Southern California, NBC News reports.
'Even though President Donald Trump's Jan. 20 executive order says the freeze does not apply to positions related to 'public safety,' federal firefighters are not exempt, according to a person who works in hiring at the Bureau of Land Management.'
Try transit: 'Expect Chaos Monday as Nearly 17,000 Return to Work at US Navy Yard,' from HillRag.
Immigration
BRAIN DRAIN: Trump's war on immigrants may lead to a sharp drop-off in the number of international students pursuing MBAs at universities in the U.S., Bloomberg reports.
'According to the Graduate Management Admission Council, which conducts an annual survey of business schools, the majority of applicants for the class of 2026 in the US (who enrolled this past fall), 61%, came from abroad. But 20 of the top 30 US schools as ranked by Bloomberg Businessweek reduced the number of foreign students in the enrolled class, an analysis of class profiles and figures provided directly by schools shows.'
Such students are helpful for schools seeking to bolster their reputation abroad, as well as providing an important revenue stream for universities.
WHAT WE'RE READING
— 'Veterans Affairs carves out potentially hundreds of thousands of staffers from 'buyout' offer,' from our Holly Otterbein and Ruth Reader.
— 'The government's computing experts say they are terrified,' from the Atlantic.
— 'DEI Didn't Change the Workforce All That Much. A Look at 13 Million Jobs,' from The Wall Street Journal.
— Opinion: 'I Was a Member of the the NLRB. What Trump's Doing to It Now Is Very Illegal,' from Lauren McFerran for Slate.
THAT'S YOUR SHIFT!

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Zacks Investment Ideas feature highlights: Nvidia, CoreWeave, Amazon, iShares Bitcoin ETF and D-Wave Quantum
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Zacks Investment Ideas feature highlights: Nvidia, CoreWeave, Amazon, iShares Bitcoin ETF and D-Wave Quantum

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Mike Crapo's megabill Mission: Impossible
Mike Crapo's megabill Mission: Impossible

Politico

time13 minutes ago

  • Politico

Mike Crapo's megabill Mission: Impossible

Presented by IN TODAY'S EDITION:— What we expect on tax policy this week— Johnson's rescissions problem— The impact of Graham's Russia sanctions It's shaping up to be an enormously consequential week for President Donald Trump's legislative agenda, and there's one lawmaker at the center of it all: Senate Finance Chair Mike Crapo. This morning we're going to zoom in on the Idaho Republican and his mammoth to-do list, which includes resolving make-or-break fights over tax policy, Medicaid cuts and clean-energy credits. (Benjamin is out with an even deeper dive that our POLITICO Pro readers got first on Sunday.) The soft-spoken Crapo has been stealthily working to coordinate changes to the 'big, beautiful' bill. It's looking like he won't release his committee's piece of the package until next week, with several outstanding policy issues unresolved. Senate Finance is expected to begin going through bill text with members and staff beginning today, and Crapo is expected to brief the broader Senate Republican conference mid-week. 'We're working as aggressively as we can to move as fast as we can,' Crapo says. Crapo's leaning on a cadre of trusted advisers. Finance staff director Gregg Richard, chief tax counsel Courtney Connell and deputy chief tax counsel Randy Herndon are among his critical staff on the bill. Crapo is known for his spare words — trust us, we've tried to get more out of him — but also for his history of landing deals. One of his biggest wins was the 2018 law that eased the Dodd-Frank banking law — an effort that required bringing along Democrats to help serve up a Trump administration victory. He also flexed as a deal-killer last year, blocking a tax revamp negotiated by House Ways and Means Chair Jason Smith and then-Senate Finance Chair Ron Wyden. Last year's clash soured the relationship between Crapo and Smith, yet the two have found a way to work together to deliver Trump's latest round of tax cuts. 'We've been communicating very closely so we each know what the other is thinking,' Crapo says. Now Crapo faces his biggest test yet as he tries to resolve Senate clashes over razor's edge deals that Smith and other top House Republicans struck to pass their version of the bill. Some of those conflicts are within Senate Finance itself, with Sen. Thom Tillis pushing for changes to 'no tax on tips' and Sen. James Lankford wanting to scale back planned endowment taxes on private universities. Crapo's personal priority? He is the leading advocate for using a legislative accounting method known as current policy baseline that would treat the extension of Trump's 2017 tax cuts as costing nothing. This is a big flash point between him and fiscal hardliners. If he succeeds in the Senate, Crapo's compromise will have to survive the House. Some top House Republicans are urging him to go easy on them. 'Mike Crapo is a brilliant senator and he's instrumental on the tax stuff and everything else. You got to respect his opinion,' Majority Whip Tom Emmer tells Mia. 'But at the end of the day, I hope they leave it right where it's at.' Look for other Senate committees to release their megabill text this week: HELP and Energy on Tuesday; Agriculture on Wednesday; and Homeland Security and Judiciary on Thursday, according to our latest intel. Agriculture text though may slide to later this week or possibly into next week as several governors are now raising concerns about plans for federal food aid. GOOD MONDAY MORNING. Follow our live coverage at the Inside Congress blog at and email your Inside Congress scribes at bguggenheim@ mmccarthy@ lkashinsky@ and bleonard@ THE SKED The House is in session. 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But there's a new problem for Speaker Mike Johnson — at least 10 moderate Republicans have privately said they currently oppose the legislation, four people with direct knowledge tell Meredith Lee Hill. The holdouts have raised concerns about the impact of the cuts and questioned whether it's appropriate to let the White House slash funding that lawmakers approved. Johnson's leadership circle thinks they can flip the no votes and muscle the package through the floor this week. The first stop is the Rules Committee Tuesday. LA immigration clashes hit the Hill's agenda Escalating confrontations between law enforcement and protesters in Los Angeles over federal immigration policy are quickly being felt on Capitol Hill after Trump mobilized the National Guard to respond. Sen. Lindsey Graham and Stephen Miller, the deputy White House chief of staff, are among the GOP lawmakers and Trump administration officials using the clashes to call for passing the megabill to bolster immigration enforcement. Congressional Hispanic Caucus members talked through the situation in an emergency meeting late Sunday, our Nicholas Wu reports. And look for the issue to come up at tonight's House Appropriations subcommittee on DHS funding, which includes immigration enforcement. Johnson doubts Musk's megabill sway Johnson told ABC's 'This Week' on Sunday that he has texted with Elon Musk but not spoken with him since last Monday. But the speaker didn't appear worried about Musk's meltdown over the 'big, beautiful' bill. He said Republicans haven't received many constituent calls urging votes against the bill over Musk's complaints. 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Elise Stefanik, the chair of House Republican Leadership, is back on House Intelligence, where she served since 2017 before losing the assignment when she was tapped to be UN ambassador. To make the move work, the House is adding Democratic Rep. Steve Cohen to the panel rather than removing another Republican. POLICY RUNDOWN BANKING'S BYRD TEST — Senate Banking Chair Tim Scott is out with his panel's contribution to the GOP's megabill, amid concerns from his own Republican members that several provisions won't be allowed under Senate budget reconciliation rules, our Katherine Hapgood reports. A plan to zero out CFPB funding could run into problems with the so-called Byrd, which restricts proposals that have a negligible budget impact. ANOTHER CRAPO PROBLEM — Thirteen House Republicans led by Rep. Jen Kiggans are urging Senate leaders to rescue clean energy tax credits that the House-passed version of the GOP megabill would phase down, Kelsey Brugger reports. Most of the lawmakers supported the bill on the House floor. 'We believe the Senate now has a critical opportunity to restore common sense and deliver a truly pro-energy growth final bill that protects taxpayers while also unleashing the potential of U.S. energy producers, manufacturers, and workers,' they wrote to Crapo and Senate Majority Leader John Thune. THE IMPACT OF GRAHAM'S RUSSIA SANCTIONS — Graham's bipartisan bill to impose 'crushing' sanctions on Russia would cut the U.S. off from some of the world's largest economies with 500 percent tariffs on any country that buys Russian energy our Amy Mackinnon reports. Graham is proposing new carve-outs for countries that provide aid to Ukraine — a big help to the European Union — but some experts remain skeptical. The Trump administration is trying to get Graham to weaken the legislation, The Wall Street Journal reports. In the House, Pennsylvania Republican Rep. Brian Fitzpatrick is holding off pursuing a discharge petition to force action on similar legislation, preferring to wait for the Senate to pass the bill, three people with direct knowledge of the plans told Meredith. Best of POLITICO Pro and E&E: CAMPAIGN STOP MEDICAID ADS FLOOD SWING DISTRICTS — TV spots mentioning Medicaid have already run in more Republican-held districts this year than they did all of last cycle as Democrats look to use GOP's proposed cuts to the program as a campaign cudgel, according to a new analysis from our Jessica Piper, Elena Schneider and Holly Otterbein. STOP US IF YOU'VE HEARD THIS ONE — Texas Republicans' messy Senate primary between Sen. John Cornyn and state Attorney General Ken Paxton is giving Democrats hope of finally flipping the Lone Star State, Nicholas and Liz Crampton report. Their logic: Paxton is leading Cornyn in polls, including, as Ben reports, among those who identify themselves as part of the 'Trump movement.' 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She previously was comms director for Rep. Rob Wittman and is a Larry Hogan alum. Chelsea Blink is now legislative director for Rep. Lauren Underwood. She previously was director of farm animal legislation at the ASPCA. Reedy Newton is now director of operations for Rep. Russell Fry. She previously was scheduler for Sen. Tim Scott and is a NRSC alum. Martina McLennan is now director of policy comms for economic and health policy at the Bipartisan Policy Center. She previously was comms director for Sen. Jeff Merkley. Emily Druckman is now comms director and senior adviser for Rep. Kim Schrier. She most recently was communications director for the National Electrical Manufacturers Association and formerly led comms for Rep. Marc Veasey. HAPPY BIRTHDAY Former Rep. Kendra Horn … Ray Salazar of House Minority Whip Katherine Clark's office … Joe Curl … Susannah Luthi … Margaret Talev … Liz Mair … Yonathan Teclu of Rep. Ilhan Omar's office … DSCC's Laura Matthews … Jess O'Connell of NEWCO Strategies … Dante Atkins … Candi Wolff of Citi … Ria Strasser-Galvis … Alexandra Toma … Lori Lodes of Climate Power … Democracy Forward's Skye Perryman … Daniel Rankin of Rep. Don Bacon's office … Aryele Bradford of Rep. Shomari Figures' office … Zac Petkanas … Semafor's Sara Amin TRIVIA FRIDAY'S ANSWER: Albert Wolf correctly answered that Rep. Laura Gillen was a scuba instructor in Thailand before she came to Congress. TODAY'S QUESTION, from Mia: The Declaration of Independence painting in the Capitol Rotunda is painted by which American painter? How many paintings does this painter have on display in the Rotunda? The first person to correctly guess gets a mention in the next edition of Inside Congress. Send your answers to insidecongress@

The stealth Senate dealmaker who could deliver Trump's tax cuts
The stealth Senate dealmaker who could deliver Trump's tax cuts

Politico

time13 minutes ago

  • Politico

The stealth Senate dealmaker who could deliver Trump's tax cuts

Some of the most critical components of President Donald Trump's agenda are in the hands of a soft-spoken senator from Idaho who behind closed doors is one of Capitol Hill's most calculating dealmakers. Senate Finance Chair Mike Crapo is rushing to finalize his panel's portion of his party's massive legislative centerpiece. He could begin briefing colleagues on bill text as soon as Monday, according to a person granted anonymity to share an evolving schedule —while three people aware of the state of negotiations say a full tax package may not be ready for release until early next week. That package needs to unite 51 Republicans in the Senate without alienating more than three GOP members of the House. The fate of vast Republican tax cuts enacted in 2017, and set to expire at the end of this year, hangs in the balance. In interviews throughout the past several weeks in the halls of the Senate, as he shuffled between meetings and votes flanked by trusted advisers, Crapo played his cards close to his vest. Asked about how he planned to make sure a trio of expiring business tax cuts are made permanent, he replied, 'I'm just not going to comment.' On whether the Senate would make tweaks to controversial House Medicaid language: 'We're working that right now. I'm not going to get into the details.' On how negotiations were going over whether to lower the House agreement to increase the cap on the state-and-local-tax deduction to $40,000: 'We're looking at the entire bill.' Crapo is known for his spare words, but also for his history of landing deals — and squashing ones he doesn't like, such as last year when he tanked a bipartisan tax bill negotiated by then-Finance Chair Ron Wyden and the chair of the House Ways and Means Committee, Jason Smith. At the same time, longtime colleagues and aides say Crapo can sometimes play the role of committee consensus-builder to his detriment — and he may have to put that tendency aside as the clock ticks down to the GOP's self-imposed July 4 deadline to send Trump his 'big, beautiful bill.' The question is now whether Crapo can help broker an agreement at this political moment when he has never presided over a policy battle with such high stakes. 'Mike Crapo is probably one of the three most well-respected members of the Republican caucus. People trust him. He listens. He tells you the truth. He tries to be inclusive, sometimes to a fault,' said Sen. John Kennedy (R-La.) in an interview. 'He's quiet. He's really, really smart.' People who have worked closely with Crapo say he likes to slowly build agreement among his committee members, has seemingly infinite patience to work out issues and most likely won't take a position with Senate leadership until he feels like all of his fellow panel Republicans are on board. 'Crapo is a very thoughtful and deliberate lawmaker who has strong views on tax policy himself, but also who cares about what his committee members want,' said Joe Boddicker, a former tax counsel for Senate Finance Republicans under Crapo, now of the law firm Alston & Bird. 'He will try to incorporate the feedback from them, and he puts a high premium on that feedback … so it'll be a group product, one that reflects the viewpoints of the committee membership.' He has previously walked political tightropes to pull off difficult legislative wins. Among the most notable was in 2018, when, as chair of the Senate Banking Committee, Crapo crafted a rare bipartisan deal with red-state Democrats to loosen Dodd-Frank regulations on banks — the most significant overhaul of the rules since they were first created after the 2008 financial crisis. '[He] puts the time in on it. He's low-key, but he is a connector, a facilitator,' said Sen. Mike Rounds (R-S.D.), who worked closely with Crapo on the banking overhaul. 'He doesn't need the spotlight, but he is very, very effective.' But Crapo is getting an earful from his members right now about what the tax portion of the GOP megabill should look like. Sen. Thom Tillis (R-N.C.) wants to make the 'no tax on tips' proposal — a Trump campaign promise — more fair for blue-collar workers in certain industries. Meanwhile, Sen. James Lankford (R-Okla.) wants to scale back a tier of new endowment taxes on private universities, a favorite proposal from House Ways and Means Republicans. Crapo is fielding a host of concerns from an ideologically diverse group of Senate Republicans, from moderate Susan Collins of Maine to conservative Josh Hawley of Missouri, who say they won't vote for a bill that could result in people losing Medicaid coverage. And then there's Sen. Ron Johnson, a Finance member who has warned he could vote against the megabill if Republicans don't commit to massive reductions in spending. At the same time, Crapo has shown in the past he's not afraid to stand up for his own interests. He surprised his House counterparts last year when he quietly killed the bipartisan tax deal crafted by Smith and Wyden. He opposed many of the policies, including an expansion of the Child Tax Credit. But while he didn't know then how the 2024 elections would shake out, stymying that deal also left the door open for the scenario in which Crapo now finds himself: able to run point on a more sweeping, and wholly partisan, tax overhaul exercise under a GOP governing trifecta. The fallout, however, also soured the relationship between Crapo and Smith. Yet the two men have found a new way to work closely together over the last few months to deliver Trump's biggest legislative priorities through the filibuster-skirting budget reconciliation process. 'I think part of the problem is that Wyden and Smith got together and Crapo didn't feel like he was a full partner,' said Finance Republican Sen. John Cornyn of Texas regarding the prior episode. Cornyn added that the current political conditions have necessitated an accord between the two lawmakers. They'll have to work together. Their two committees differ on the questions of business tax permanence — which would cost around half a trillion dollars to implement — and how high to cap the SALT deduction — which all Finance Republics want lowered. And there's continued disagreement over using an accounting tactic to essentially paper over around $3.8 trillion of extensions of Trump's tax cuts. Smith says he's in favor of the maneuver, but House hard-liners are extremely skeptical of the idea. Senate Republicans, including Crapo, want to keep it in place. 'We've been communicating very closely so we each know what the other is thinking,' 74-year-old Crapo, who has served in the Senate for more than three decades, said in an interview of his working relationship now with 44-year-old Smith, who was elected to the House in 2013 and has a reputation for being more outwardly pugnacious. 'We each know what the other's politics are in their caucus,' Crapo continued, 'and we're trying to keep ourselves in a situation where there are as few differences as possible.' A spokesperson for Smith did not respond to a request for comment about the House member's rapport with the senator. The partnership will come in handy as Crapo faces enormous pressure from other members of House GOP leadership, who are urging the Senate not to make so many changes to the House-passed bill that it will slow down the bill's final passage — if not derail the effort altogether. 'Mike Crapo is a brilliant senator and he's instrumental on the tax stuff and everything else. You got to respect his opinion. But at the end of the day, I hope they leave it right where it's at,' said House Majority Whip Tom Emmer (R-Minn.) in an interview last week. Crapo, meanwhile, has expressed quiet confidence he will deliver a viable product — even as he deals with the competing demands of House leaders like Emmer, his fellow Finance Republicans and even the Senate parliamentarian, whose rulings could complicate his efforts. Asked recently about an anticipated parliamentary ruling on the accounting tactic, he managed to sum up his whole approach: 'I never declare victory until the game is over.' Jordain Carney and Mia McCarthy contributed to this report.

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