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Finance professor says people should be 'cautiously optimistic' about Fed rate cut

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www.youtube.com – 40/29 News – 2024-09-19 11:47:25

SUMMARY: The Federal Reserve has announced its first interest rate cut in four years, lowering rates by half a percentage point, signaling a shift in its approach to combating inflation, which has decreased significantly since its peak in 2022. This rate reduction could alleviate high borrowing costs for Americans on mortgages and credit cards. Local finance experts suggest that while immediate benefits might be subtle, businesses may find themselves with more capital for expansion, potentially leading to job creation as unemployment rises. A finance professor advises cautious optimism regarding the long-term effects of this rate cut on the economy.

U of A economic expert explains impact of key interest rate on businesses and jobs

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Changes at NIH give political appointees greater power to fund or block research

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arkansasadvocate.com – Arthur Allen, KFF Health News – 2025-09-04 04:00:00


In 2025, the Trump administration issued an executive order shifting NIH grant decisions from scientific peer review to political appointees, allowing cancellation of grants not aligned with agency priorities. NIH Director Jay Bhattacharya’s memo reinforced this, deemphasizing peer review scores in funding decisions. Critics warn this politicizes NIH research, undermining decades of expertise and the merit-based system that funds 80% of NIH’s $48 billion budget. Political appointees now influence grant approvals, leading to self-censorship and delays. Scientists report morale decline and difficulty recruiting reviewers. The administration claims this ensures strategic funding, but many fear it compromises scientific integrity and taxpayer interests.

by Arthur Allen, KFF Health News, Arkansas Advocate
September 4, 2025

The Trump administration has given notice that political appointees, rather than scientists, will ultimately decide who gets grant money from the world’s largest biomedical research funder — the federal government’s National Institutes of Health.

In an Aug. 7 executive order, President Donald Trump announced that political officers would have the power to summarily cancel any federal grant, including for scientific work, that is not “consistent with agency priorities.” Senior officials should not “routinely defer” to recommendations from peer reviewers, who have provided the backbone of federal science funding for eight decades.

NIH Director Jay Bhattacharya reinforced the message in an Aug. 15 internal memorandum stating that political priorities may override the scoring system provided by outside experts appointed to hundreds of review panels.

“While the score and critiques an application receives in peer review are important factors in determining the scientific merit of a proposal,” his memo stated, NIH institutes and centers should not rely on the scientific merit rankings “in developing their final pay plans.”

Like ongoing conflicts at the Centers for Disease Control and Prevention and the Federal Reserve, NIH scientists told KFF Health News, the disruption of the peer review process represents an attack on agency expertise that the country has relied on for decades.

Although the priorities of top agency staffers have always influenced some NIH funding, those people were nearly always career scientists in the past. By downgrading its peer review process, the NIH could allow political appointees who now occupy key positions to stop grants that typically would be funded, and to fund grants they prefer that don’t necessarily meet rigorous scientific standards, a dozen current and former NIH officials told KFF Health News.

Bhattacharya’s guidelines “open the door to the politicization of NIH research,” said Jenna Norton, a program officer in the National Institute of Diabetes and Digestive and Kidney Diseases.

“Peer review is fundamental and makes sure we’re doing the best science,” she said. “If you’re going to ignore that, the political appointee gets to make the final call.”

NIH spokesperson Amanda Fine said that peer review would continue to be the cornerstone of the NIH’s funding decisions but that funding would become less dependent on reviewers’ rankings of grant proposals.

This will “ensure consistent, transparent, and strategic funding decisions that align with the agency’s mission, maximize public health impact, and responsibly steward taxpayer dollars,” she said. Trump’s executive order said peer reviews would be “advisory” only.

Grants to scientists at universities and other research centers make up about 80% of the NIH’s $48 billion budget, with the rest funding internal NIH research. Since 1946, the NIH has doled out funds based mainly on merits established by a scientific review process that ranks each proposal based on innovation, importance and feasibility.

The peer review process, in which grant proposals scoring above a certain percentile generally receive funding, has always had its critics. Many a Nobel Prize speech has described failures by reviewers to recognize work that would end up leading to pathfinding discoveries, said Carrie Wolinetz, a former NIH chief of staff.

About half of the NIH’s 27 centers and institutes provide leeway to raise or drop grants on the priority list because of factors like institute-wide research goals, Fine said. But these exceptions apply to fewer than 5% of grants, according to Richard Nakamura, who led the NIH’s Center for Scientific Review from 2011 to 2018.

Nakamura’s successor, Noni Byrnes, retired last week after overseeing changes aimed at reducing one frequent target of peer review critics: the awarding of multiple grants to well-placed scientists from top-tier universities.

The Bhattacharya document “itself is not so disturbing in the light of usual practice,” said Harold Varmus, who led the NIH under President Bill Clinton and was the chief of the National Cancer Institute under Barack Obama. “What is disturbing is what it might mean in the context of the current administration.”

The expansion of the Trump administration’s political power at the NIH comes as it has strangled the release of thousands of grants with sometimes ambiguous policy statements and new layers of bureaucracy, including requirements that both the White House and the NIH director clear all new funding opportunities.

Career scientists, who have long run the NIH, have in some instances been replaced by political appointees playing critical roles in scientific decisions, staff scientists say.

New political appointees under Bhattacharya include chief of staff Seana Cranston, a former aide to conservative Rep. Thomas Massie (R-Ky.), and former Department of Government Efficiency manager James McElroy, Cranston’s deputy. The position of chief operations officer was created and filled by Eric Schnabel, a political appointee — since fired — who previously had been in charge of business development for a company that sold fitness programs.

Bhattacharya’s deputy, meanwhile, is Matthew Memoli, an infectious disease scientist who emerged as a sharp critic of covid-19 vaccine mandates. The Department of Health and Human Services stunned vaccine experts in May when it awarded Memoli and colleagues a $500 million grant to develop an influenza vaccine using older technology, with no explanation other than a superlative-filled news release.

The mood at the agency is morbid, said Sylvia Chou, a program officer at the National Cancer Institute. While a minority of workers speak out in protest through documents like the “Bethesda Declaration,” others keep their heads down and their mouths shut.

Most grants must undergo new levels of review by senior NIH employees and the White House, program officers say. Staff members painstakingly police all grant applications for language — such as “diversity” or “climate change” — that might trigger scrutiny by higher-ups, according to four program officers, two of whom KFF Health News agreed not to name because they feared retaliation.

“Bhattacharya has been saying that program officers are making up banned-words lists,” Norton said. “It’s true, we haven’t gotten a list from him saying, ‘Don’t use these words.’ But we do notice that when a grant says ‘health equity,’ it gets terminated.”

“We review them and screen them for all these words as we’re supposedly not doing — but we are doing,” said a program officer who has been at the NIH for six years. “After we approve them, they go to the grant management office and sit there. Then they send them back and say, ‘What about this word?’” This leads to self-censorship, the officer said.

The officer cited a recent proposal involving the effects of hotter weather on kidney disease. It contained the phrase “climate change” as background information, but “I had them remove it,” the officer said. “It’s a level of absurdity, but I wanted to avoid more delays.”

The peer review process itself is “starting to break down” because highly scored grants haven’t been funded for sometimes obscure reasons, Chou said.

The NIH picks hundreds of deeply experienced external scientists to serve on its review panels. While screened to avoid conflicts of interest, many reviewers are themselves NIH grant recipients. They accept pay of about $200 for 100 hours of work as a kind of social contract with the NIH, said Mollie Manier, a scientist at the Center for Scientific Review.

“We’re finding that people are more likely to decline to serve on review panels because their own grants are frozen, or out of protest at what’s happening at NIH,” Manier said.

Another review officer described approaching a Brown University scientist with a request to serve on a panel recently: “They said normally they would do it, but they’ve lost three grants and need to figure out how to keep their lab running.”

As grants crawl through the system, “reviewers are starting to feel they aren’t being convened for anything real,” Manier said. “If the government cancels your grant for no good reason, you can’t expect a good-faith effort anymore.”

“It’s death by a thousand paper cuts, anything they can do to gum up payments, to gum up the decision-making, to wrest control of grant decisions from the career scientists,” said Elizabeth Ginexi, an NIH program officer for 22 years who took early retirement in April.

Fine, the NIH spokesperson, said the agency had “no evidence that recruiting peer reviewers has become more difficult than in the past.”

The administration’s skepticism of peer review feeds doubts NIH scientists already had because of what they saw as irrational villainizing of mRNA vaccines and other matters — including Memoli’s vaccine award.

Although in-house NIH research isn’t subject to the same review process as external grants, Memoli’s grant left officials aghast. “I’m not aware of a process that awards $500 million for a project using antiquated technology to develop vaccines,” one seasoned reviewer said.

Trump’s executive order says the grant review process “undermines the interests of American taxpayers,” leaving many good proposals unfunded while supporting “too much unfocused research of marginal social utility.”

“The opposite is true,” the seasoned reviewer said. “We make sure taxpayer money goes to the most high-impact research.”

“Alignment” is a word the Trump administration frequently uses to explain why an official got fired or research was rejected. Chou finds it appalling.

“The Chinese Communists call it ‘harmonization,’” she said, and now her colleagues speak routinely about grants that are “clean” because they’ve “gone through alignment.”

“We’re saying this in plain English,” she said. “Not Russian, not Beijing Chinese.”

KFF Health News is a national newsroom that produces in-depth journalism about health issues and is one of the core operating programs at KFF—an independent source of health policy research, polling, and journalism. Learn more about KFF.

This article first appeared on KFF Health News and is republished here under a Creative Commons Attribution-NoDerivatives 4.0 International License.

Arkansas Advocate is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Arkansas Advocate maintains editorial independence. Contact Editor Sonny Albarado for questions: info@arkansasadvocate.com.

The post Changes at NIH give political appointees greater power to fund or block research appeared first on arkansasadvocate.com



Note: The following A.I. based commentary is not part of the original article, reproduced above, but is offered in the hopes that it will promote greater media literacy and critical thinking, by making any potential bias more visible to the reader –Staff Editor.

Political Bias Rating: Center-Left

This content critically examines the Trump administration’s policies on NIH grant funding, highlighting concerns about increased political interference in scientific decision-making. The perspective emphasizes the value of peer review and the expertise of career scientists, framing political appointees’ influence as undermining scientific integrity. The critique aligns with views commonly expressed by center-left sources that prioritize scientific norms and caution against politicization of federal agencies, while maintaining a focus on factual reporting rather than overt partisan rhetoric.

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Arkansas correction division to enter settlement over disability law violations

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arkansasadvocate.com – Ainsley Platt – 2025-09-03 05:00:00


The Arkansas Department of Corrections (ADC) will settle with the U.S. Department of Justice over Americans with Disabilities Act violations at the Ouachita River Unit. The DOJ found the ADC failed to provide proper accommodations for inmates with mobility disabilities, including accessible cells, showers, and support for transfers, causing physical harm. The settlement requires the ADC to make at least 3% of cells accessible, provide necessary equipment, appoint an ADA coordinator, and improve housing policies. Capital improvements, costing up to $500,000, will be overseen by a DOJ-approved architect. The ADC must report compliance progress biannually to the DOJ.

by Ainsley Platt, Arkansas Advocate
September 3, 2025

Arkansas’ prison administration agency will enter into a settlement with the U.S. Department of Justice over violations of the Americans with Disabilities Act at its Malvern facility, Department of Corrections staff told members of the Board of Corrections on Tuesday.

The DOJ found that the Division of Correction (ADC) violated the ADA by failing to provide proper accommodations to inmates with mobility disabilities, excluding them from “safely accessing or participating in its programs, services, activities, and facilities.” The settlement will require the unit to make several changes to ensure compliance, but does not involve a monetary penalty, according to Tawnie Rowell, chief legal officer for the Department of Corrections.

Rowell told board members that the Justice Department’s investigation started with complaints about scalding showers. Once the federal agency started investigating, agents conducted a top-down review.

“We ended up in a less than desirable situation because Ouachita River’s construction was under an old version of the ADA,” Rowell said.

The ADA, first passed by Congress in 1990, prohibits disability discrimination by federal, state and local government and requires employers and government to provide reasonable accommodations to those with disabilities. It was amended in 2008 to broaden the definition of disability in response to U.S. Supreme Court rulings. Disabilities covered under the act can be mental or physical, and do not need to be permanent.

The settlement had been brought before the board earlier this year, Rowell said, but ADC staff had gone back to try to address concerns about DOJ’s access to Division of Correction facilities as part of ongoing compliance monitoring.

“We got this, I think, about as good as they’re willing to go,” Rowell said. “It does still require that we provide a fair amount of access, but we did make it clear that it’s limited to the Ouachita River facility and it’s not going to be global.”

According to a copy of the settlement agreement, the Justice Department began investigating after “inmates with mobility disabilities” said the prison administration failed to provide them with accessible cells and showers at the Ouachita River Unit, causing “ongoing physical harm.”

The inmates also said they were injured by “scalding showers,” and “were not given necessary support or supplies to physically transfer between their wheelchairs and beds, showers, and toilets.” The agreement also noted the inmates said they were not provided adequate medical care.

A survey conducted by the federal government in 2021 found that the Ouachita River Unit had “barriers to access” for inmates with mobility impairments, the settlement document said.

Under the settlement agreement the ADC cannot discriminate against or exclude inmates from medical care, daily activities, education and other programs and services on the basis of their disability.

The division must make a minimum of 3% of the cells in the Ouachita River Unit accessible to inmates with disabilities, and must provide accommodations such as shower chairs and wheelchair maintenance. The settlement also requires the division to appoint an ADA coordinator.

Complying with the settlement will require capital improvements to the unit. The corrections department will be required to hire a DOJ-approved architect to assess whether the fixes made comport with the disability law.

The board approved up to $500,000 for the work at a previous meeting, Rowell said.

The division will also be required to establish and implement “comprehensive housing policies” to ensure inmates with disabilities are housed in “safe, appropriate housing.” The division will be required to report its progress on compliance efforts to the DOJ every six months.

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Arkansas Advocate is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Arkansas Advocate maintains editorial independence. Contact Editor Sonny Albarado for questions: info@arkansasadvocate.com.

The post Arkansas correction division to enter settlement over disability law violations appeared first on arkansasadvocate.com



Note: The following A.I. based commentary is not part of the original article, reproduced above, but is offered in the hopes that it will promote greater media literacy and critical thinking, by making any potential bias more visible to the reader –Staff Editor.

Political Bias Rating: Center-Left

This content focuses on government accountability and the enforcement of disability rights within a state correctional facility, highlighting the role of the U.S. Department of Justice in addressing civil rights violations. The emphasis on protecting vulnerable populations and ensuring compliance with federal disability laws aligns with center-left values that prioritize social justice and government intervention to uphold rights. The tone is factual and measured, without overt partisan language, but the subject matter and framing lean slightly toward progressive concerns about equity and institutional reform.

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Hackett student arrested after shooting threat

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www.youtube.com – 40/29 News – 2025-09-02 17:15:16

SUMMARY: A Hackett student was arrested after an anonymous shooting threat targeting the high school was posted in a student group chat. The threat, reported Monday morning, prompted Sebastian County deputies to station officers at Hackett schools for safety as classes resumed. Deputies, aided by Homeland Security, traced the post back to the teenager within ten hours. Investigators say there is no credible evidence the student intended to carry out the threat. The situation escalated through social media, complicating tracing efforts. The investigation remains active, with possible additional arrests, and deputies will continue a visible presence at the schools.

Deputies increased security at Hackett schools in response.

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