The U.S. Department Of Homeland Security logo is displayed at a Citizenship and Immigration Services office on January 16, 2026 in San Diego, CA. (Kevin Carter/Getty Images)
(WASHINGTON) — The Trump administration on Friday issued a sweeping policy directive requiring most temporary visa holders and humanitarian parolees living in the U.S. to return to their home countries to apply for and complete their green card applications.
“We’re returning to the original intent of the law to ensure aliens navigate our nation’s immigration system properly,” U.S. Citizenship and Immigration Services spokesperson Zach Kahler said in a statement. “From now on, an alien who is in the U.S. temporarily and wants a Green Card must return to their home country to apply, except in extraordinary circumstances.”
This is a developing story. Please check back for updates.
A fuel pump at a Wawa gas station in Aston, Pennsylvania, US, on Thursday, May 21, 2026. (Matthew Hatcher/Bloomberg via Getty Images)
(NEW YORK) — Gas prices stand near their highest level in four years as millions of Americans ready themselves to hit the road over Memorial Day weekend.
The national average for a gallon of gas on Friday stood at $4.55, which amounts to a roughly 42% rise from this time last year, AAA data showed. Gas prices surged in recent months as the Iran war choked off global oil supply.
Six states boast average gas prices above $5, including Washington and Alaska. California, the state with the nation’s highest gas prices, offers drivers an average gallon of $6.13, according to AAA.
Roughly 39 million people are expected to travel by car over the Memorial Day holiday, exceeding last year’s total, AAA forecasted.
“Travel demand remains strong, and despite higher fuel prices, many people are prioritizing leisure travel,” Stacey Barber, vice president of AAA travel, said in a statement.
Americans will spend about $2 billion more on gasoline over the four-day Memorial Day weekend compared to a year ago, amounting to an added cost of roughly $22 million per hour, Patrick De Haan, a petroleum analyst at GasBuddy, said in a post on X on Friday.
Nineteen states are expected to post record-high Memorial Day gas prices, among them Colorado, Ohio, Missouri and New Mexico, De Haan said.
Crude oil is the main ingredient in auto fuel, accounting for more than half of the price paid at the pump, according to the federal U.S. Energy Information Administration. The Middle East conflict triggered a historic oil shortage, driving up crude prices and hiking the cost of auto fuel.
The surge in oil prices came about after Iran effectively closed the Strait of Hormuz, a maritime trading route that facilitates the transport of about one-fifth of global crude supply.
The U.S. West Texas Intermediate futures price — a benchmark of U.S. oil prices – has soared 50% since the outbreak of war on Feb. 28.
The U.S. is a net exporter of petroleum, meaning the country produces more oil than it consumes. But since oil prices are set on a global market, U.S. prices move in response to swings in worldwide supply and demand.
Oil prices have fallen slightly this week, however, as negotiations have given rise to hope among traders about a possible resumption of normal tanker traffic in the Strait of Hormuz.
As a result, De Haan said, gasoline prices may drop over the weekend, falling to an average below $4.50 by Memorial Day.
Roughly one of every 10 low-income households is spending more than 10% of its monthly income on gas, Bank of America said in a research report shared with ABC News last month, citing internal data. For middle- and upper-income households, the share spending that much on gas drops stands at about one of every 20.
Oil prices remain well below the highs reached after some previous economic shocks. In 2022, the price of Brent crude surged above $139 per barrel in March, just weeks after the Russian invasion of Ukraine. During the 2008 financial crisis, U.S. oil prices shot up as high as $147 a barrel.
Stock image of dental chair. (Zhenjin Li/Getty Images)
(PHILADELPHIA) — Health officials in Philadelphia are recommending certain patients of a dental clinic accused of following “unsanitary practices” get tested for hepatitis and HIV due to potential exposures from April 2025 to May 2026, the city’s Department of Public Health said in a statement this week.
Officials on Wednesday identified the dental clinic in Center City Philadelphia as Smiles at Rittenhouse Square, also called Smiles on the Square, and said it is now closed due to the dentist’s temporary suspension.
James Garrow, Philadelphia’s deputy health commissioner, told ABC News the risk is believed to be low to patients at this time because they have yet to identify any associated cases of hepatitis or HIV linked to this dentist office.
“We don’t have any known reason to say that the risk will be potentially high, but the fact of the matter is, when you are in a dentist office that’s unsanitary, unsafe, the risk always exists,” Garrow said. “So that’s why we’re really pushing folks who are patients there to get tested and make sure.”
The sole dentist practicing at this office has since had their license temporarily suspended, state records show.
“On May 15, 2026, the State Board of Dentistry suspended Dr. Kirti Chopra’s professional license in Pennsylvania because her continued practice of dentistry presents a clear and immediate danger to public health and safety,” a Pennsylvania Department of State official said in a statement to ABC News.
The alleged sanitary problems in the clinic were discovered during an unannounced site visit, the suspension order, reviewed by ABC News, said.
According to the order, the dentist allegedly admitted to investigators that used injectable medication vials were occasionally set aside for reuse on other patients and IV saline bags intended for single use were reused between patients.
Investigators said they identified multiple issues with sterilization and sanitation practices during the site visit that include finding dental instruments that were not properly sterile, handled with potentially contaminated gloves, and packaged in potentially contaminated pouches.
They also reported finding dental handpieces that came into contact with blood and saliva left attached to patient equipment after use that should be sterilized between patients.
The dentist’s temporary suspension order concluded that these findings “place patients at risk for transmission of hepatitis C, hepatitis B, Human Immunodeficiency virus (HIV), as well as outbreaks of viral, bacterial or fungal infections.”
Hepatitis viruses and HIV are spread through contact with infected blood or body fluids. Garrow said exposure at a dentist’s office is “exceedingly rare” but it is possible to get infected if exposed through contaminated dental equipment.
“The fact of the matter is, if someone who is a patient there was exposed to one of these diseases… these are potentially life-changing chronic conditions,” Garrow said.
Doctors tell ABC News potentially impacted patients may need multiple blood tests, depending on the timing of a potential exposure.
“If it’s a recent exposure it would be a minimum of two or three blood draws to establish a baseline and then follow-up testing to determine seroconversion,” Dr. George Diaz, a spokesperson for the Infectious Disease Society of America, told ABC News.
Doctors say hepatitis B is considered one of the more transmissible bloodborne viruses in healthcare settings when sterilization procedures aren’t followed or if contaminated instruments are reused.
The hepatitis B vaccine offers the best line of protection for a person who is exposed to this virus.
“In this case, vaccination against Hepatitis B would be protective against exposures such as this,” Diaz said. “Risk is virtually zero for those that are vaccinated.”
There are no current vaccines to prevent HIV or hepatitis C. Treatment options vary for each virus, based on timing of exposure or infection.
According to Garrow, the health department is working to finalize a list of patients potentially at risk but due to the timeframe of potential exposure, he estimates that number “could be in the hundreds.”
Garrow also said that there is another dental clinic in the same building with a similar name, Rittenhouse Smiles, that is not under investigation, and they are working on messaging to minimize patient confusion.
Officials say people who are unsure about potential exposure or patients of Smiles at Rittenhouse Square should call 215-685-5488, a hotline the health department set up that is open between 8:30 a.m. and 5 p.m. ET, Monday through Friday.
“Dr. Chopra is cooperating with the Department of Public Health and the Pennsylvania Department of State,” a lawyer representing Chopra and Smiles at Rittenhouse Square said in a statement to 6ABC Philadelphia on Wednesday. “Dr. Chopra will continue working cooperatively with public-health officials regarding patient notification, testing recommendations, and any required infection-control remediation.”
Mark Abdelmalek, MD is a medical contributor and investigative reporter for ABC News. Jade A. Cobern, MD, MPH, is a fellow of the ABC News Medical Unit.
U.S. President Donald Trump looks on during an event in the Oval Office of the White House on May 21, 2026 in Washington, DC. (Chip Somodevilla/Getty Images)
(WASHINGTON) — President Donald Trump attacked outgoing Republican Sen. Thom Tillis on Friday, calling him a “RINO” — an acronym for “Republican in Name Only” — and a “quitter” as he appeared to acknowledge the ongoing revolt among some in his own party.
“I called him a ‘Nitpicker,’ always fighting against the Republican Party, and ME, mostly on things that didn’t matter,” Trump wrote in a social media post.
“Now he can have all the fun he wants for a few months, with some of his RINO friends, screwing the Republican Party. In the end it will only get bigger, and better, and stronger, than ever before!!!” Trump said.
Tillis is among several Republican lawmakers to criticize aspects of Trump’s agenda, most recently the creation of a nearly $1.8 billion so-called “Anti-Weaponization Fund” to compensate those who allege they were wrongly targeted under the Biden administration. The fund was created as part of a settlement agreement in President Trump’s $10 billion lawsuit against the Internal Revenue Service.
Tillis slammed the fund as the “payout pot for punks.” Critics have said that those who committed violence against police, including Jan. 6 rioters, might be eligible for compensation in addition to Trump’s political allies.
“These people don’t deserve restitution, they — many of them deserve to be in prison,” Tillis said on Thursday. “Some of them deserve the pardon because they were over prosecuted, but this is, I mean, this is just stupid on stilts.”
Congressional Republicans on Thursday punted plans to advance a $70 billion immigration bill as Senate Republicans were poised to try to rein in spending for the so-called anti-weaponization fund, as well as Trump’s East Wing expansion and White House ballroom construction project.
Several Republicans who Trump has spurned have become the fund’s most outspoken critics, including Louisiana Sen. Bill Cassidy. Cassidy lost his primary race last week after Trump endorsed his opponent.
“People are concerned about paying their mortgage or rent, affording groceries and paying for gas, not about putting together a $1.8 billion fund for the President and his allies to pay whomever they wish with no legal precedent or accountability,” Cassidy wrote on X.
Trump on Friday suggested that Tillis’ choice to not run for reelection was in some part because Trump declined to give him an endorsement.
“When I told him that I would not, under any circumstances, endorse him for another run, too much work and drama (he couldn’t have won, anyway!), he immediately quit the race and publicly announced that he was going to ‘retire.’ I said, ‘Wow, great news, that was easy!'” Trump wrote in the post.
When Tillis announced last year that he wouldn’t run for reelection, he said is a statement that it was “not a hard choice” to rule out running for a third term as he was finished with “navigating the political theatre and partisan gridlock in Washington.”
Tillis was asked by reporters on Thursday what he thought of Trump going after some Republican incumbents in primary races.
“Be careful what you ask for,” Tillis responded.
In defense of the fund, which has also drawn legal challenges, Trump on Friday claimed he “gave up a lot of money” by allowing it to move forward and that he could have made an “absolute fortune” if he hadn’t made the IRS settlement.
“Instead, I am helping others, who were so badly abused by an evil, corrupt, and weaponized Biden Administration, receive, at long last, JUSTICE!,” Trump wrote in another social media post.
ABC News’ Isabella Murray and Allison Pecorin contributed to this report.
President Donald Trump speaks at an event with Environmental Protection Agency (EPA) Administrator Lee Zeldin on May 21, 2026 in the Oval Office at the White House in Washington, D.C. (Photo by Al Drago for The Washington Post via Getty Images)
(WASHINGTON, D.C.) — President Donald Trump said he will “try” and make his son Donald Trump Jr.’s wedding this weekend, which is reportedly taking place in the Bahamas — though he said the event is “not good timing” for him given his responsibilities surrounding the war in Iran.
During an event in the Oval Office on Thursday, Trump said his son wants him to come his wedding with fiancée Bettina Anderson but that the president has “a thing called Iran — and other things.”
“He’d like me to go, but it’s going to be just a small, little private affair, and I’m going to try and make it,” Trump said. “This is not good timing for me. I have a thing called Iran and other things. That’s one I can’t win on.”
“If I do attend, I get killed. If I don’t attend, I get killed by the fake news,” Trump said. “Hopefully they’re going to have a great marriage.”
Donald Trump Jr. is the eldest son of the president who has five children with his ex-wife, Vanessa Trump.
Vanessa Trump announced on Instagram Thursday that she has been diagnosed with breast cancer.
Flowers and candles are seen outside the mosque as hundreds of community members gather at Lindbergh Park beside the Islamic Center of San Diego during a vigil following the deadly mosque shooting, in San Diego, California, United States, on May 19, 2026. (Photo by Michael Ho Wai Lee/Anadolu via Getty Images)
(SAN DIEGO) –The family of Caleb Vasquez, one of the teenage suspects involved in the deadly Monday shooting at the Islamic Center of San Diego, has released a statement saying they are “deeply sorry for the pain and devastation caused” and that their son’s alleged actions “do not reflect the values we raised our family with or the beliefs we hold in our hearts.”
Three people were murdered before the two suspects, aged 17 and 18, took their own lives and were found dead in a vehicle nearby, officials said
“Over the last several days, our family has been trying to process the horrific actions carried out by our son against the Islamic Center San Diego Community,” read a statement released on Thursday from Colin Rudolph, the attorney for the Vazquez family, and obtained by ABC News’ San Diego affiliate KGTV. “We want to begin by acknowledging that nothing we say or do could ever repair the damage his actions have caused. We are completely heartbroken and devastated by what has happened. We condemn these hateful and violent actions entirely.”
“As much as we mourn the child we raised and love, we mourn even more deeply for the innocent lives of Amin Abdullah, Mansour Kaziha, and Nadir Awad,” the statement continued. “We honor and thank them for their heroic actions that day, which prevented the loss of even more innocent lives. Our hearts and prayers are with each of their families during this unimaginably tragic time.”
Abdullah, who was a security guard, Kaziha and Awad were killed in the shooting on Monday, authorities said, with investigators saying they are currently considering the incident as a hate crime.
Abdullah has been hailed as a hero for stymying the suspects, who were just 15 feet from 140 children. Kaziha, a community elder, was the first person to call 911 and Awad rushed from across the street where he lives to help when he heard the shooting, community members and advocates said.
The two suspects, aged 17 and 18, were found dead in a vehicle nearby, police said. Authorities are investigating two teenagers, Cain Clark and Caleb Vazquez, as the suspected attackers in the shooting.
Investigators are examining a lengthy document circulating online that is comprised of two hate-filled essays totaling 75 pages allegedly written by the suspected shooters, sources told ABC News.
Both essays promote white nationalism and express a hatred for immigrants, racial minorities and others, as well as anger toward women who prefer taller men, according to sources. Vazquez allegedly writes he is an “accelerationist” in his essay, echoing nihilistic rhetoric, sources said.
It’s unclear when the essays were actually written — a section intended to identify the “targets” is left blank, sources said.
Police are investigating how the suspects obtained firearms in the shooting, San Diego Police Chief Scott Wahl said Tuesday. The guns belonged to the parents of one of the suspects, he said, but did not confirm if the guns were safely locked up or stored.
During searches of two residences associated with the suspects, authorities seized “numerous pistols, rifles, shotguns, ammunition, tactical gear, as well as electronics,” Mark Remily, the special agent in charge of the FBI’s San Diego Field Office, said.
A still photo from a video released by the Pentagon that appears to show an object flying near a plane over the Southeastern U.S. (Pentagon)
(WASHINGTON, D.C.) — The Pentagon unveiled another batch of its so-called UFO files on Friday, part of a rolling release of once-classified material ordered released by President Donald Trump.
Friday’s release included more than 50 previously classified videos and other documents related to unidentified anomalous phenomena (UAPs), the official term used by the federal government to describe UFO’s.
Among the newly released files are a video from an infrared sensor operated by the U.S. Coast Guard in April 2024 showing an object flying near a plane over the Southeastern U.S.
Another video labeled “Syrian UAP instant acceleration” was taken from an infrared sensor aboard a U.S. military platform in 2021 and uploaded to a classified network in 2024, according to the Pentagon.
After multiple investigations, the Pentagon’s All-domain Anomaly Resolution Office (AARO) has found no evidence that any of these incidents are of an extraterrestrial nature — but military officials admit many remain “unresolved” and cannot be explained.
So far, the Pentagon has released over 200 files related to UAPs — which have long been an object of public fascination — following the directive from Trump.
Another of the newly released records — a video from 2020 taken in an undisclosed area under U.S. Central Command — appears to show a sphere flying over a population center before it eventually flew higher, off into the sky.
Also included in the files is a written account from a senior U.S. intelligence officer last year who described seeing “two large orbs flare up” alongside their helicopter while on a mission. The officer wrote they were “orange with a white or yellow center, and emitted light in all directions.”
Fighter jets then scrambled to identify the objects — but couldn’t, the officer recounted. He said “the same orbs we had encountered were now ‘chasing’ the fighters … We were virtually speechless after these observations.”
Two weeks ago, the Pentagon released the first batch of files from various federal agencies, some dating as far back as the late 1940s. Those files were posted on a new website that has already received more than a billion views worldwide, according to the Pentagon’s top spokesman.
“In an effort for Complete and Maximum Transparency, it was my Honor to direct my Administration to identify and provide Government files related to Alien and Extraterrestrial Life, Unidentified Aerial Phenomena, and Unidentified Flying Objects,” Trump said at the time in a post on his social media platform. “Whereas previous Administrations have failed to be transparent on this subject, with these new Documents and Videos, the people can decide for themselves, “WHAT THE HELL IS GOING ON?” Have Fun and Enjoy!”
In this photo illustration, the Telekom Malaysia company logo is seen displayed on a smartphone screen. (Photo Illustration by Piotr Swat/SOPA Images/LightRocket via Getty Images)
Senior personnel at a telecommunications company orchestrated a “calculated embezzlement scheme” to divert millions of dollars into their own pockets, federal prosecutors in New York charged in the first case of its kind that involved self-reporting by the company that allowed the corporation to avoid criminal charges.
Mohd Hafiz Lockman, Mohd Yuzaimi Yusof and Khanh Thuong Nguyen allegedly misappropriated more than $20 million from Telekom Malaysia’s U.S. subsidiary using false statements, forged records, fictitious transactions and corporate and individual impersonations to deceive counterparties, suppliers, auditors and supervisors, the indictment said.
Lockman, 48, of Dublin, California, Yusof, 44, of Livermore, California, and Nguyen, 48, of Manassas, Virginia, are charged with wire fraud conspiracy, wire fraud and aggravated identity theft. All three were taken into custody last month and were released on bond. They have not yet entered pleas.
Their parent company, Telekom Malaysia Berhad, reported the alleged fraud to the U.S. attorney’s office in Manhattan last month and the company has been cooperating with the ongoing investigation, prosecutors said.
It’s the first prosecution to result from a self-reporting program U.S. Attorney Jay Clayton announced earlier this year. Telekom Malaysia received a conditional declination of charges against the company provided it cooperates, pays restitution and agrees to report any future criminal conduct for the next three years.
“Today’s fraud charges come within weeks of receiving a self-report from the company,” Clayton said in a statement announcing the charges. “As alleged, Mohd Hafiz Lockman, Mohd Yuzaimi Yusof, and Khanh Thuong Nguyen perpetrated a sprawling fraud to steal over $20 million. The defendants deceived counterparties, suppliers, auditors, and their own supervisors. As a result of the fact that the conduct was reported to this Office and quickly investigated, the defendants will now be held to account for fraudulently lining their own pockets.”
According to the indictment, the defendants first schemed to sell Telekom. Malaysia’s broadband capacity without authorization and divert the proceeds to their own accounts. Then, they allegedly impersonated one of Telekom Malaysia’s suppliers and intercepted payments the company made to that supplier.
They also allegedly impersonated employees and interns and captured their salaries. The fourth component of the fraud involved reimbursements for fabricated work expenses, officials said.
As one example, the indictment said the trio collaborated to request reimbursement for expenses incurred for a work trip to Las Vegas in December 2025. In fact, no such trip occurred. According to the indictment, when the parent company requested pictures from the trip, the defendants hastily organized a trip to Las Vegas and photographed scenes with Christmas trees to make it appear as though photographs had been taken in December.
Soldiers assigned to Charlie Company, 1st Battalion, 41st Infantry Regiment, 4th Infantry Division, maneuver toward an objective during a Combined Arms Live-Fire Exercise as part of Ivy Mass at Pinon Canyon Maneuver Site, Colorado, on May 17, 2026. (Pfc. Jacob Cruz/US Army)
(WASHINGTON) — The Army has canceled dozens of medical training courses as the service moves to manage a multibillion-dollar budget shortfall that is rippling across the force, according to multiple U.S. officials and internal documents reviewed by ABC News.
At least 34 medical-related courses have been canceled during the second half of the Pentagon’s fiscal year, which ends Sept. 30, according to the documents.
The cuts come from the Army Medical Center of Excellence, the service’s hub for its medical training, headquartered at Fort Sam Houston, Texas.
Those cuts come as commanders are being told to closely scrutinize their spending as the service faces ballooning operational costs, including those related to the war in Iran and skyrocketing fuel costs.
Many of the canceled medical training programs are tied to frontline combat casualty care. An internal memorandum describing the reductions cites “funding shortfalls and limited resources.”
Other cuts include leadership and certification courses for senior medical officers, including training for officers preparing to command helicopter medical evacuation units. The service also canceled courses related to animal care, behavioral science, food safety inspections and operating in radioactive environments, according to internal service plans.
“The Army has issued guidance to subordinate commands – for the remainder of this fiscal year, to make tough and sound resource decisions that optimize and prioritize resources toward their most critical requirements, to include major training and readiness events,” Col. Marty Meiners, a service spokesperson, said in a statement.
The cuts are part of a broader financial squeeze that has forced Army planners to slash training across the force while commanders reshuffle money. ABC News previously reported that Army planners had begun canceling training events as the service confronted a projected $4 billion to $6 billion funding shortfall.
The medical course cuts are in addition to what was previously reported, and the cancellations offer the most detailed account of specific training events getting axed until at least October, when the new fiscal year starts.
Last week, Gen. Chris LaNeve, who is serving as the Army’s top officer in an acting capacity, disputed ABC News’ earlier reporting during testimony before lawmakers.
“We haven’t canceled anything,” LaNeve said, while acknowledging the Army is in a funding pinch.
LaNeve seemingly conceded to lawmakers that some training cuts were planned, which he framed as typical toward the end of the fiscal year. Yet the service was only halfway through the fiscal year when those plans were being made, documents show. The Army did not make LaNeve available for comment.
Military spending does start to draw more scrutiny from commanders toward the end of the summer as money for the fiscal year dries up, but any belt-tightening is traditionally at the margins, multiple current and former U.S. officials explained.
The service’s III Armored Corps, based out of Fort Hood, Texas, which includes some 70,000 soldiers and made up of much of the Army’s tank and other heavily armored units, recently had much of its training funds diverted, while an internal memorandum warned that its helicopter units expected to deploy to Europe next year will be at “a lower state of readiness,” as pilot training had to effectively be frozen outside of the bare minimum military requirements to fly.
All of the Army’s major formations are being directed to make cuts, officials explained. The full scope of training and other events being canceled is likely much more significant.
Just to keep its helicopters flying at that minimum level required, $26.6 million was siphoned from the corps’ ground combat training units, an amount of money just slightly higher than cost estimations to keep flying time at a minimum, internal documents show, which directs commanders to scratch any training of scale. Flyovers for public events were also canceled.
The shortfall stems from a combination of rising costs and increasingly demanding volume of operations, according to two U.S. officials, with one describing it as “a perfect storm.”
Those costs include the Army’s support to the Department of Homeland Security during its 76-day shutdown, which involved border construction projects and assistance missions along the southern border. The Army is expected to eventually recoup nearly $2 billion tied to those DHS missions.
Additionally, rising fuel costs have forced commanders to heavily scrutinize travel, as soldiers mostly use commercial travel to fly to different courses and training events.
The service is also absorbing expenses tied to the conflict with Iran, as well as the expanding National Guard mission in Washington, D.C., which is projected to cost about $1.1 billion this year, according to estimates from the nonpartisan Congressional Budget Office. One U.S. official said the mission is set to roughly double in size, expected to grow to roughly 5,000 troops over the summer.
The financial strain comes as the Pentagon is seeking a $1.5 trillion budget next year, 50% above current funding levels. The sticker shock has drawn fierce blowback from Democrats on Capitol Hill. But the record-setting request does not account for the costs of the Iran war, which Defense Department officials estimate has already topped $29 billion as of last week. Those expenses are largely tied to munitions and do not include the potentially massive bill for rebuilding bases damaged in Iranian strikes.
Lawmakers on Capitol Hill are now bracing for the Pentagon to send Congress a supplemental funding request to cover the mounting war-related costs.
On Thursday, Adm. Daryl Caudle, the Navy’s chief of naval operations, warned lawmakers that the service may soon face similar tradeoffs unless Congress approves supplemental funding on top of the Pentagon’s proposed $1.5 trillion budget request, which was finalized before the Iran conflict escalated.
“The [fiscal 2026] budget didn’t bake in [Operation] Epic Fury,” Caudle told the House Armed Services Committee. “You see a large Navy force in the Middle East. So we’re burning bright … but it does come at cost, and it comes at operational costs.”
In this Jan. 19, 2026, file photo, New York City Comptroller Mark Levine speaks at an event at the Brooklyn Academy of Music in New York. (Jason Mendez/Getty Images for Brooklyn Academy Of Music, FILE)
(NEW YORK) — The top financial officer in New York City on Thursday warned that artificial intelligence could put thousands of workers in the nation’s largest metropolis out of a job as soon as this year, while acknowledging that the ultimate impact of AI remains uncertain.
The only sure thing, New York City Comptroller Mark Levin said in a new report: AI promises a “radical transformation” in the globe’s financial capital, influencing everything from wages to pension payments to Wall Street profits.
Levin, a Democratic former New York City Council member, predicted a range of scenarios both positive and negative, gauging the likelihood of outcomes as bullish as a broad-based productivity boom and as detrimental as mass layoffs.
City policymakers stand to play a central role in the technology’s ultimate fate, Levin added, calling for urgent steps like creating a multi-billion dollar financial cushion in case economic calamity strikes.
“There is no city in America – and perhaps none on earth – more exposed to both the promise and peril of artificial intelligence than New York City. And there are few places with more power to steer the transformation ahead,” Levin said in the report.
New York City hosts “hundreds of firms competing to make New York the capital of applied AI,” Levine added, as well as roughly one million workers who labor in Manhattan office towers, many of whom stand at risk of AI disruption. The high stakes exemplify a reckoning likely to play out in cities nationwide, he said.
“Uncertainty is not an excuse for inaction,” Levin said, saying local policies should complement much-needed efforts at the federal level. “We are not helpless.”
The report comes as the stock market and the economy overall have both come to increasingly rely on massive spending on AI to propel continued growth, even as companies warn of job losses tied to the technology.
A wave of thousands of job cuts attributed to artificial intelligence over recent months has taken hold in industries as diverse as tech and airlines. In April, AI company Anthropic opted against releasing its latest model, Mythos, expressing concern that the tool could be used to bypass cybersecurity protections across the internet.
Blockbuster earnings from chip giant Nvidia on Wednesday, meanwhile, rebuked fears of a slowdown in the rip-roaring pace of growth for the artificial intelligence behemoth.
In his report, Levin assessed five potential scenarios for AI uptake in New York City, focusing on potential economic downsides and benefits of each. The forecast draws upon national AI scenarios developed by Moody’s Analytics, adapting them for New York City, Levin said.
In the most likely outcome, dubbed the “AI-Empowered Economy,” Levin predicted that AI would improve productivity while delivering moderate economic growth, including an average of about 52,000 jobs added each year through 2030. Levin pegged the likelihood of this outcome at 35%.
A more pessimistic scenario, which Levin called “AI Falls Flat,” foresees a drop-off in AI investment and an accompanying stock market slide. If this outcome comes to pass, New York City would lose about 52,500 jobs as soon as this year, suffering temporary ill-effects akin to those that coincide with a recession, Levin said. The probability of this scenario, he added, stands at 25%.
Other possible outcomes include “faster-than-expected AI” adoption that improves productivity but replaces jobs, as well as an “AI shockwave” that upends white-collar employment.
The “most optimistic” of the five scenarios, Levin says, is a “Productivity Boon,” in which AI-driven productivity growth complements job growth, rather than displacing it, boosting compensation in the process. Levin puts the likelihood of this outcome at 15%.
To be sure, Levin said, the potential economic impact of AI remains highly uncertain. Other economic trends unrelated to AI could also hold significant implications for the city’s economy, Levin added, pointing to a historic oil shock that has driven up fuel and grocery prices.
Levin touted the role of local government in responding to the changes wrought by AI, whether they prove favorable or otherwise.
“These are not questions we can leave to Silicon Valley, Washington, or the market alone. New Yorkers must help shape the future ourselves,” Levin said.