Eric Adams ends campaign for New York City mayor

Eric Adams ends campaign for New York City mayor
Eric Adams ends campaign for New York City mayor
Michael M. Santiago/Getty Images

(NEW YORK) — New York City Mayor Eric Adams announced Sunday he is suspending his campaign for mayor, just weeks away from the closely watched election.

Adams announced his decision in a video on X.

The mayor, running as an independent, resisted calls to drop out previously from opponents of Democratic nominee Zohran Mamdani, who were concerned he and independent candidate former Gov. Andrew Cuomo, who lost the Democratic primary and is running as an independent, would split the vote.

Adams has been polling behind Mamdani, Cuomo and Republican nominee Curtis Sliwa.

ABC News previously reported that it is too late for Adams’s name to be removed from the ballot. His name will remain, as will fellow long shot candidate Jim Walden, who also suspended his campaign and last week endorsed Cuomo.

Adams’ decision follows an order Friday from the Manhattan federal judge who oversaw Adams’ criminal case.

Judge Dale Ho agreed to add the city’s Campaign Finance Board as an interested party in the now-dismissed corruption matter. The CFB asked to be added so it could review the case before deciding whether to award matching funds to the Adams campaign.

The judge’s order granting the request made clear to the mayor and his campaign advisers that it would be unlikely they would receive public money to match the nearly $4 million Adams has raised.

Adams was indicted in September 2024 on five counts in an alleged long-standing conspiracy connected to what prosecutors said were improper benefits, illegal campaign contributions and an attempted coverup.

The charges against the mayor — including counts of wire fraud, conspiracy, bribery and solicitation of a contribution from a foreign entity — were dropped against him in April by the U.S. Justice Department in what his critics claimed was a quid pro quo with the Trump administration.

Adams and the Justice Department denied there was a quid pro quo involved in the dropping of the charges.

Advisers for President Donald Trump had been in contact with Adams to persuade him to drop out of the race and offered him positions in the administration, including an ambassador post in Saudi Arabia, sources told ABC News.

Trump and Adams both denied reports of those meetings. However, Trump has been vocal that candidates should drop out to limit the number of challengers against Mamdani.

Adams said in his announcement he could not continue his bid because of what he said was media speculation and funds withheld by the CFB “have undermined my ability to raise the funds needed for a serious campaign.”

“When I was elected to serve as your mayor, I said these words: This campaign was never about me. It was about the people of this city — from every neighborhood and background — who had been left behind and believed they would never catch up. This campaign was for the underserved, the marginalized, the abandoned and betrayed by government,” Adams said in the video.

“Since then, it has been my honor to be your mayor. And I am proud to say that we took that victory four years ago and turned it into action — making this city better for those who had been failed by government.”

Adams also indicated he will serve out the rest of his term in office.

“Although this is the end of my reelection campaign, it is not the end of my public service. I will continue to fight for this city — as I have for 40 years, since the day I joined the NYPD to make our streets safer and our systems fairer,” he said.

Adams did not endorse any candidate for mayor in his announcement.

Mamdani wrote in a statement reacting to Adams’ withdrawal, “Donald Trump and his billionaire donors might be able to determine Eric Adams and Andrew Cuomo’s actions but they will not dictate the results of this election. New York deserves better than trading in one disgraced, corrupt politician for another. On November 4th, we are going to turn the page on the politics of big money and small ideas and deliver a government every New Yorker can be proud of.”

Cuomo said in a statement Sunday that Adams’s choice to drop out “was not an easy one, but I believe he is sincere in putting the well-being of New York City ahead of personal ambition.”

“We face destructive extremist forces that would devastate our city through incompetence or ignorance, but it is not too late to stop them,” Cuomo wrote.

The former governor added, “Mayor Adams has much to be proud of in his accomplishments. Only in New York can a child raised in a tenement in Bushwick, who once worked as a squeegee boy and a mailroom clerk, rise to become mayor. Whatever differences we may have, Eric Adams’ story is undeniably one of resilience — a testament to the spirit of this city.”

A spokesperson for Sliwa wrote, “Curtis Sliwa is the only candidate who can defeat Mamdani. Our team, our resources, and our funding are unmatched. Most importantly, we have the best solutions to help working people afford to stay in New York City and feel safe.”

City Hall staff members were informed of the mayor’s decision just a few moments before the campaign released Adams’ statement. Adams gave no indication that he has a job lined up after he leaves office. A source close to the mayor was unaware of a job being offered.

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At least 10 shot, 1 fatally, at Michigan church set on fire by the gunman: Police

At least 10 shot, 1 fatally, at Michigan church set on fire by the gunman: Police
At least 10 shot, 1 fatally, at Michigan church set on fire by the gunman: Police
Bill Pugliano/Getty Images

(NEW YORK) — Multiple people were shot Sunday during a packed service at The Church of Jesus Christ of Latter-day Saints in Grand Blanc, Michigan, police said.

At least 10 parishioners were shot, including one who was killed, Grand Blanc Police Chief William Renye said at a news conference. Renye said two other victims were in critical condition and that the gunman, a 40-year-old man, was killed in a gunfight with police.

The church was deliberately set on fire by the suspect, whose name was not immediately released, Renye said.

“We do believe we will find additional victims once we have that scene secured,” Renye said.

The attack unfolded at 10:25 a.m. and more than 100 people were attending the service, according to Renye.

“He ran the vehicle through the front door, exited and started firing shots,” Renye said of the suspect.

The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and FBI responded to the incident.

Fire set in the aftermath of the shooting grew to a five-alarm blaze that caused a partial collapse of the structure, according to law enforcement officials. Just before 1 p.m., authorities said the fire had been extinguished.

An ABC News source briefed on the investigation said detectives are urgently working to determine the motive behind the shooting. Investigators are working to learn whether the church had been the target of threats in recent months and looking to see whether the timing could be connected to the death on Saturday of Russell M. Nelson, president of The Church of Jesus Christ of Latter-day Saints. He was 101 years old.

Nelson died at his home in Salt Lake City, church spokesperson Candice Madsen said in a statement.

President Donald Trump said he’s been briefed on the shooting and fire, writing Sunday on social media, “This appears to be yet another targeted attack on Christians in the United States of America.”

“The Trump Administration will keep the Public posted, as we always do. In the meantime, PRAY for the victims, and their families. THIS EPIDEMIC OF VIOLENCE IN OUR COUNTRY MUST END, IMMEDIATELY!” Trump said.

Trump also wrote that the FBI is leading the investigation efforts. Trump said that while the suspect is dead, there is “still a lot to learn.”

Vice President JD Vance posted his own statement on social media, calling the shooting and fire at an LDS church “awful.” He said the “entire” Trump administration is monitoring the incident.

“Just an awful situation in Michigan. FBI is on the scene and the entire administration is monitoring things. Say a prayer for the victims and first responders,” Vance wrote.

Shortly after the shooting, Attorney General Pam Bondi said in a post on X, “I am receiving briefings about what appears to be a horrific shooting and fire at an LDS church in Grand Blanc, Michigan. @FBI and @ATFHQ agents are en route to the scene now. Such violence at a place of worship is heartbreaking and chilling. Please join me in praying for the victims of this terrible tragedy.”

Michigan Gov. Gretchen Whitmer said her “heart is breaking for the Grand Blanc community” in a statement on X.

“Violence anywhere, especially in a place of worship, is unacceptable,” she said. “I am grateful to the first responders who took action quickly. We will continue to monitor this situation and hold the Church of Jesus Christ of Latter-Day Saints in the Grand Blanc close.”

Renye said during Sunday’s news conference that the FBI has assigned more than 100 agents to help in the investigation.

“Violence in a place of worship is a cowardly and criminal act. Our prayers are with the victims and their families during this terrible tragedy,” FBI Director Kash Patel said in a social media post.

Church of Jesus Christ of Latter-day Saints spokesperson Doug Anderson issued a statement confirming that the gunman opened fire on the congregation during Sunday worship services.

“The Church is in communication with local law enforcement as the investigation continues and as we receive updates on the condition of those affected,” Anderson said. “We offer thanks to the emergency responders who are assisting victims and families. We are deeply grateful for the outpouring of prayers and concern from so many people around the world. In moments of sorrow and uncertainty, we find strength and comfort through our faith in Jesus Christ. Places of worship are meant to be sanctuaries of peacemaking, prayer and connection. We pray for peace and healing for all involved.”

For years, law enforcement and homeland security experts have been warning that religious institutions across the board are being targeted for acts of violence.

“We can all agree that our houses of worship should be safe places for people to exercise their freedom of religion but right now we are increasingly seeing them being targets for violence — and not just attacks any one faith,” Michael Masters, who oversees security operations for the main U.S. network of Jewish schools and synagogues, told ABC News. “Attacks against religious institutions are attacks against our democracy as a whole.”

Masters said there has been an increase in targeted attacks across the faith-based community over the past several years.

“This is something we’ve been working to prepare for in the Jewish community for many years. In the current threat environment, the offenders are often not distinguishing. There’s the Jewish community, the Sikh community, the Annunciation church and now the LDS church in Michigan,” he said.

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Defense Secretary Pete Hegseth to tell hundreds of generals about the ‘warrior ethos’ in rare gathering: Sources

Defense Secretary Pete Hegseth to tell hundreds of generals about the ‘warrior ethos’ in rare gathering: Sources
Defense Secretary Pete Hegseth to tell hundreds of generals about the ‘warrior ethos’ in rare gathering: Sources
Anna Moneymaker/Getty Images

(WASHINGTON) — At next week’s unusual gathering of several hundred senior U.S. generals and admirals, Defense Secretary Pete Hegseth will deliver his message of restoring the “warrior ethos” to the U.S. military and present new standards toward that goal, according to five U.S. officials.

Many of the senior military officers will come to the Marine base at Quantico, Virginia, from all over the United States and from around the world to hear Hegseth in an event that could last just 30 minutes, according to two officials.

ABC News has previously reported that only officers in command positions and not staff positions are being summoned to the gathering and that they will also be joined by the senior enlisted adviser in that unit.

Five U.S. officials told ABC News that the rare gathering will allow Hegseth to personally tell the officers about the warrior ethos he envisions for the U.S. military and the path forward.

That will also include a discussion of new standards associated with how to achieve that goal and how the U.S. military will conduct itself.

President Donald Trump plans to speak to the generals and admirals at the meeting, White House officials told ABC News on Sunday.

Pentagon Press Secretary Kingsley Wilson declined to comment to ABC News about what Hegseth planned to discuss at Tuesday’s meeting.

Restoring the warrior ethos to the U.S. military is a message that Hegseth delivers regularly during his speaking engagements in the U.S. and abroad.

While it is common for Hegseth and previous defense secretaries to meet with generals and admirals during their travels or at the Pentagon, it is unusually rare for so many high-ranking officers to be gathered at one location to hear from the defense secretary.

Overall, there are 838 total general officers and admirals on active duty — 446 of them are from the higher two-star, three-star and four-star ranks — according to the Pentagon’s latest statistics from June, though it is difficult to ascertain a breakdown of how many officers are in command positions versus staff positions.

Several questions have been raised about the increased security requirements that will be needed at the large Marine base located 35 miles south of Washington, D.C.

Questions have also been raised about the significant travel and lodging costs that would be associated with transporting so many senior military officers and their senior enlisted advisers to Quantico, said two U.S. officials.

Video of Tuesday’s meeting will be recorded by the Pentagon for future public distribution, according to officials.

The invitations that went out to officers in command positions earlier this week did not disclose a reason or topic as to why they were being summoned to the gathering in Quantico.

Because of that, speculation among military officials had been rampant about the topic for the meeting and whether it was related to his earlier announcement this year of a 20% reduction in the number of officers of four-star rank.

Concerns had also been raised about his previous removal of 15 senior military officers from their posts, including Gen. Charles “CQ” Brown, Jr. the then-chairman of the Joint Chiefs of Staff, and Adm. Lisa Franchetti, the Navy’s top admiral.

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Arizona flooding kills 4, causes 1,000 propane tanks to wash away in hazmat concern

Arizona flooding kills 4, causes 1,000 propane tanks to wash away in hazmat concern
Arizona flooding kills 4, causes 1,000 propane tanks to wash away in hazmat concern
Arizona Governor Katie Hobbs (Mario Tama/Getty Images)

(GLOBE, Ariz.) — At least four people have been confirmed dead and two remain unaccounted for amid intense flooding in parts of Arizona, local officials said Saturday.

The flooding caused about 1,000 propane tanks to wash away from a distribution facility, creating a serious hazmat concern in the area of downtown Globe, Arizona, according to Gila County Emergency Management.

On Saturday, Arizona Gov. Katie Hobbs declared a state of emergency to speed resources to the area.

“The flooding in Gila County has caused heartbreaking loss and serious damage,” she said in a statement.

A search and rescue effort was underway for more potential victims, officials said.

Two of the victims confirmed dead were found in a vehicle having drowned, officials said, and a third victim was found outside a vehicle in downtown Globe. An official could not confirm to ABC News if the victims were adults or any relation between them.

A fourth man who went missing during the storm overnight was found dead Saturday morning outside his vehicle, according to the Scottsdale Police Department.

Police said they discovered Ander Polanco’s body outside his car as floodwaters receded. A death investigation is underway and the cause of death hasn’t been released.

The propane tanks that washed away have created a serious concern due to their ability to explode, officials warned.

“Historic Downtown Globe is currently unsafe, with compromised buildings as well as hazardous chemicals and debris, including propane tanks,” the city of Globe said in a post on Facebook.

“For your safety, please stay out of the area until further notice. We also ask everyone to stay out of the creek. Search and rescue operations are underway, and any traffic in the area can interfere with rescue teams and throw off the scent work of trained dogs,” the city said.

Gila County Emergency Management is advising residents to shelter in place due to possible hazardous materials in the floodwaters.

All available agencies in the region are responding to assist with SAR and hazmat assessment and clean up, a county emergency management official told ABC News.

“Crews continued work throughout the night. We want to thank them for their diligent work. This includes Globe FD, Globe PD, Globe Public Works, Gila County, Gila County Emergency Services and DPS,” the city of Globe said.

The city has added over 100 additional resources that include Maricopa Search and Rescue, Tonto Rim Search and Rescue, Pima County Search and Rescue, and 2-20 person work crews from the State Land Department. “We are waiting on many other crews from throughout the state,” the city said.

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3 dead, 8 injured after shooter in boat opens fire on North Carolina waterfront bar: Official

3 dead, 8 injured after shooter in boat opens fire on North Carolina waterfront bar: Official
3 dead, 8 injured after shooter in boat opens fire on North Carolina waterfront bar: Official
amphotora/Getty Images

(SOUTH PORT, N.C.) — Three people were killed and eight others injured after a person on a boat fired shots at a waterfront bar in the coastal North Carolina city of Southport, a city spokeswoman told ABC News.

The shooting began at the Southport Yacht Basin at about 9:30 p.m. on Saturday, when someone on a boat coming up Cape Fear opened fire on the American Fish Company, an outdoor bar venue, said ChyAnn Ketchum, the city’s public information officer. The boat then proceeded up the Intracoastal Waterway, she said.

The city posted a notice on its Facebook page warning of “reports of an active shooter” just before 10 p.m. along the waterfront, advising residents to avoid the area and stay in their homes.

“Shortly after 10:00 p.m., the U.S. Coast Guard observed a single individual matching the description of the shooter, loading their boat at the public boat ramp at NE 55th Street in Oak Island,” Ketchum said in a statement.

She added,” The Coast Guard crew detained this suspect, who is now being held by the Oak Island Police Department, and will be turned over to the Southport Police Department for questioning, with assistance from the State Bureau of Investigation.”

Southport is a city of about 4,300 people near the mouth of the Cape Fear River.

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NATO fighter jets scrambled in Poland as Russia launches deadly strikes on Ukraine

NATO fighter jets scrambled in Poland as Russia launches deadly strikes on Ukraine
NATO fighter jets scrambled in Poland as Russia launches deadly strikes on Ukraine
Danylo Dubchak/Frontliner/Getty Images

(LONDON) — NATO fighter jets were scrambled and air defense units put on alert in the early hours of Sunday in response to a major Russian drone and missile strike on Ukraine, the Polish Operational Command said in posts to X.

“Due to the activity of the Russian Federation’s long-range aviation, which is carrying out strikes on the territory of Ukraine, Polish and allied aviation has begun operating in our airspace,” the command said in a statement.

“On-duty fighter pairs have been scrambled, and ground-based air defense systems as well as radar reconnaissance have reached a state of highest readiness,” the post added.

“These actions are of a preventive nature and are aimed at securing the airspace and protecting citizens, especially in areas adjacent to the threatened regions,” it said.

Dutch F-35 stealth fighters and a German Patriot surface-to-air missile system were among the forces put on alert, the command added. Airspace over Lublin and Rzeszow near the Ukrainian border was also briefly closed.

The alert ended after around three-and-a-half hours with no reported violations of Polish airspace, the command said.

There have been no reported violations of Polish airspace by long-range Russian drones since dozens crossed into the country during strikes on Ukraine on Sept. 10, prompting Polish and allied jets to shoot down several.

Kyiv was the focus of the overnight Russian strikes. Zaporizhzhia, Khmelnytskyi, Sumy and Odesa were also attacked, President Voloydmyr Zelenskyy said in a post to Telegram. The barrage lasted for more than 12 hours, the president said.

Ukraine’s air force said Russia launched 593 drones and 50 missiles of various types, making the overnight barrage the largest combined strike on Ukraine since Sept. 7.

Defenders downed or suppressed 566 drones and 45 missiles, the air force said. Five missiles and 31 drones impacted across 16 locations, the force said.

At least four people — among them a 12-year-old girl — were killed in the capital, according to a post by head of the Kyiv City Military Administration Timur Tkachenko to Telegram.

At least 14 people were also injured in Kyiv, local officials said.

“As of now, there are over 15 locations with damage,”  Tkachenko said. “Among them are drone strikes on multi-story residential buildings.” Tkachenko reported damage in at least five city districts.

Mayor Vitali Klitschko said a five-floor apartment building in the Solomyanskyi district was partially destroyed and caught fire. Strikes also hit a state medical facility, warehouses, private homes, cars and a children’s educational center, officials said.

At least 31 people — among them three children — were injured by Russian strikes on the southern city of Zaporizhzhia, according to local Gov. Ivan Fedorov. A high-rise apartment building and several other structures were hit and set ablaze in the city, Fedorov said.

The city — home to more than 710,000 people before Russia’s full-scale invasion — is now only around 16 miles from the front line and subject to continuous Russian attacks.

Ukraine’s Interior Minister Ihor Klymenko said in a post to Telegram that at least 70 people were injured by strikes across the country.

Zelenskyy noted that the “cowardly” attack took place at the end of a week of high-level meetings and speeches at the United Nations General Assembly in New York.

“This is exactly how Russia declares its real position,” Zelenskyy said. “Moscow wants to continue fighting and killing and deserves only the harshest pressure from the world.”

Zelenskyy again called for more international measures to choke Russia’s energy export industry. “We count on a strong response from the U.S., Europe, the G7 and the G20,” he wrote.

Andriy Kovalenko — the head of the Counter-Disinformation Center operating as part of Ukraine’s National Security and Defense Council — said in a post to Telegram that it was a “difficult night for many cities.”

“The Russians are also under attack,” Kovalenko wrote. “And the level of these attacks will only increase.”

Russia’s Defense Ministry said its forces shot down at least 41 Ukrainian drones overnight.

Rosaviatsiya, Russia’s federal air transport agency, reported temporary flight restrictions at multiple airports, including at the Zhukovsky International Airport in Moscow.

Restrictions were also imposed at airports in Volgograd, Kaluga, Penza, Samara, Pskov and Yaroslavl.

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Jeffries says he’s ‘hopeful’ a government shutdown can be avoided

Jeffries says he’s ‘hopeful’ a government shutdown can be avoided
Jeffries says he’s ‘hopeful’ a government shutdown can be avoided
ABC News

(NEW YORK) — House Minority Leader Hakeem Jeffries said Sunday he is “hopeful” a government shutdown can be avoided as Congress lurches toward its Tuesday deadline to reach a spending agreement.

Jeffries’ comments come after President Donald Trump canceled a meeting last week with Jeffries and Senate Democratic leader Chuck Schumer to hammer out a deal before saying Saturday he’d meet with the Democrats and Senate Majority Leader John Thune and House Speaker Mike Johnson on Monday.

“Our view going into the meeting is that we want to find bipartisan common ground, to find a spending agreement that avoids a government shutdown and actually meets the needs of the American people in terms of their health, their safety, and their economic well-being,” Jeffries told “This Week” co-anchor Martha Raddatz.

One of the main points of contention between Democrats and Republicans has been the impending expiration of the Affordable Care Act’s tax credits, which Democrats are fighting to extend.

“We know they don’t expire till the end of the year, so why not approve this and just get seven more weeks to negotiate?” Raddatz asked.

“Well, because notices are going to go out in a matter of days and it’s going to be a shock to the system of everyday Americans who are already struggling to get by,” Jeffries said.

Responding to Jeffries later on “This Week,” House Majority Leader Steve Scalise advocated for passing a short-term funding bill and continuing negotiations into the coming months.

“Let’s let those talks continue till November with this short-term government funding bill that’s in the Senate,” Scalise said. “But it’s the same levels of funding that the Senate voted for, Democrats included, back in March.”

Scalise noted that he, like Jeffries, is hopeful that a shutdown can be avoided.

“I’m not only hopeful, I, Speaker Johnson, all my Republican colleagues voted to prevent a government shutdown, and we passed that bill to the Senate,” Scalise said.

“There’s still time for an agreement to be reached. I’m glad that President Trump is showing leadership and meeting with all leaders, Republican and Democrat, Monday in the White House,” he added.

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US State Department revokes Colombian president’s visa after remarks at New York City protest

US State Department revokes Colombian president’s visa after remarks at New York City protest
US State Department revokes Colombian president’s visa after remarks at New York City protest
Alexi J. Rosenfeld/Getty Images

(NEW YORK) — The U.S. State Department said it was revoking the visa of Colombian President Gustavo Petro, who had traveled to New York this week for the United Nations General Assembly.

“Earlier today, [Petro] stood on a NYC street and urged U.S. soldiers to disobey orders and incite violence,” the State Department said Friday in a post on X. “We will revoke Petro’s visa due to his reckless and incendiary actions.”

Petro, who traveled to New York for the U.N. General Assembly, participated in a pro-Palestinian demonstration earlier Friday. In video clips posted to social media, he can be heard appealing to American soldiers — urging them to disobey orders from President Donald Trump.

Based on the video clips, there did not appear to be any uniformed U.S. service members in the audience listening to Petro.

Petro, responding to the revoking of his visa on Saturday, posted a lengthy response to President Donald Trump on X, saying that “international laws grant me immunity to go to the UN and that there should be no reprisals for my free opinion, because I am a free person.”

He also criticized Trump’s advisers and urged the president to “see humanity clearly and what’s happening” in regards to the situation in Gaza and the crackdown on migrants in the U.S.

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Dominion, Rudy Giuliani reach ‘confidential settlement’ in $1.3B defamation case

Dominion, Rudy Giuliani reach ‘confidential settlement’ in .3B defamation case
Dominion, Rudy Giuliani reach ‘confidential settlement’ in $1.3B defamation case
Alex Kent/Getty Images

(NEW YORK) — Voting machine company Dominion has settled its $1.3 billion defamation lawsuit against former Trump attorney Rudy Giuliani over false allegations surrounding the 2020 presidential election, according to the company.

The settlement came just days after the company said they reached another settlement with another one-time Trump attorney, Sidney Powell.

“The Parties have agreed to a confidential settlement to this matter,” a Dominion spokesperson said in a statement to ABC News about the Giuliani case.

A court filing in the ongoing civil case against Giuliani on Friday showed the parties seeking a voluntary dismissal of the matter. No details about the settlement were made available.

“Each party shall bear its own attorneys’ fees, expenses, and costs,” the filing stated.

The “confidential settlement” would bring an end to the case that spanned over four years, since Dominion first filed is $1.3 billion dollar lawsuit against Giuliani in January 2021.

The suit accused Giuliani of carrying out “defamatory falsehoods” about Dominion in the wake of the 2020 election in part to enrich himself through legal fees and his podcast.

An attorney for Giuliani listed in the case did not immediately respond to ABC’s request for comment.

Dominion also sued Powell in January of 2021 for $1.3 billion, accusing her of leading a pervasive campaign to spread false election theories that gained currency with President Donald Trump.

Last week, a filing in the defamation case against Powell also showed the parties seeking voluntary dismissal.

“The Parties have agreed to a confidential settlement to this matter,” a Dominion spokesperson said.

A former federal prosecutor, Powell rose to become a close adviser to Trump in the closing days of his first term, meeting with Trump repeatedly as he mounted increasing attempts to overturn the outcome of an election he lost by more than 7 million votes.

Attorneys for Powell did not respond to ABC’s request for comment.

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Trump’s H1-B changes raise concerns about US tech economy’s future, ability to recruit specialty talent

Trump’s H1-B changes raise concerns about US tech economy’s future, ability to recruit specialty talent
Trump’s H1-B changes raise concerns about US tech economy’s future, ability to recruit specialty talent
Joe Raedle/Getty Images

(NEW YORK) — President Donald Trump’s executive order strapping a six-figure fee to the H1-B visa has created confusion for tech firms and the tens of thousands of foreign employees that the companies have depended on for their growth, according to immigration and business experts.

Trump and his officials touted the recent order to add a $100,000 fee for every H1-B application as one that would help create more job opportunities for Americans. This visa program allows U.S. employers to hire foreign workers in specialty occupations.

However, the president’s move will make it difficult for tech firms to expand U.S. operations or incentivize highly talented foreign workers to choose America as the place they launch their next big idea, Stuart Anderson, the executive director of non-partisan think tank National Foundation for American Policy, told ABC News.

“More than half of the billion-dollar start-ups have at least one immigrant co-founder,” Anderson said. “And those firms lead to thousands of jobs for Americans.”

Anderson, who served as the executive associate commissioner at the U.S. Immigration and Naturalization Service under President George W. Bush, acknowledged that the H1-B program was in need of reform, particularly when it came to mega corporations dominating the visa’s lottery system. However, he said the current administration’s approach does more harm to the program than good.

He and other analysts noted that even if the $100,000 fee is reversed, some damage to the tech economy may have already been done as entrepreneurs and prospective employees rethink their options.

“If you cut off highly skilled people from coming into the country, you’re going to cut off chances of having a dominant economy,” Anderson said.

How H1-B works
The H1-B visa program was created as part of the 1990 immigration bill and allowed foreign prospective employees with college and graduate degrees in select fields such as computer sciences, engineering and medical research to legally live and work in America.

The law allows for 65,000 H1-B visas a year, which lasts for three to six years, for applicants with bachelor’s degrees and an additional 20,000 a year for workers with higher-level degrees. Academic institutions are exempt from this cap.

Applicants can renew their visa when it expires with the approval of their employer.

A study released in March by Pew Research found that there were roughly 400,000 applications for the H1-B visa, the majority of which were for renewals.

In addition to paying for the visa’s fees, which are around $5,000 for filing costs, companies must follow strict rules in order for the visa to be approved, according to Greg Morrisett, the dean and vice provost of Cornell Tech.

“A company that files for an H1 has to provide an assertion that they hire for the same salaries as it does for an American citizen,” he said.

Morrisett said that many tech firms — such as Microsoft, Facebook and Google –have benefited from the program by hiring engineers and programmers from places like India, China and South Korea. He noted that these workers played essential roles in developing their products and successes.

Several major tech CEOs — including Microsoft’s Satya Nadella and Google’s Sundar Pichai — are foreign-born and were on H1-B visas after they finished their college and graduate studies in America.

“I think the U.S has led in technology and engineering because of the federal government’s investments and universities attracted the best minds and gave them the ability to thrive,” Morrisett said.

Despite its success, the program has come under criticism from conservative groups who argue that it takes jobs away from American-born workers.

Other critics argue that the visa lottery favors larger corporations, who have more money and resources to pay the filing fees and help process the applications, compared to smaller companies and startups.

Morrisett said the additional $100,000 fee will create a bigger push for the major corporations to get the H1-B talent.

“It’s devastating for the start-up world. The big tech companies can weather the storm but a lot of start-up companies simply don’t have the money,” he said.

The top companies with H1-B workers during the 2025 fiscal year were Amazon, with over 10,000 employees on the visa, followed by Tata Consulting Services, which has about 5,505, and Microsoft, Meta, Apple and Google, which each have around 5,100, according to U.S. Citizenship and Immigration Services.

Jeremy Robbins, the executive director of nonprofit advocacy group the American Immigration Council, told ABC News that smaller start-up firms are crucial for the tech industry’s growth. Every major tech company started off as a smaller mom and pop start-up that blossomed due to the right developer or engineer who cracked the code to bring an app or tech product across the finish line.

“Putting on a flat fee that privileges large companies over small ones, or incentivizes talent to go overseas or incentivizes companies to set up shop overseas, is not an answer,” he said.

Robbins acknowledged that some of the H1-B’s provisions needed tweaking. Some, such as the cap, are frozen in the economic landscape of the early ’90s, he noted. At the time, the country was in recession and falling behind in the tech boom.

“You want to think about how to do that and protect American workers. You would want to treat it differently from a boom time than during a recession,” he said.

Robbins said that Trump’s executive order on the H1-B “cut off the hand to treat a small pain in the finger.”

Trump’s EO creates confusion, fear
On Sept. 19, Trump signed the order adding $100,000 to the fees associated with the H1-B visa. He and Commerce Secretary Howard Lutnick said the order was to promote American jobs.

“That’s the point of immigration: Hire Americans, and make sure the people coming in are the top, top people,” Lutnick told reporters at the time. “Stop the nonsense of letting people just come into this country.”

When asked if the executive order’s new fee covered first-time H1 applicants or all applicants once it kicked in on Sept. 21, Lutnick responded, “Renewals, first time.”

“The company needs to decide… is the person valuable enough to have a $100,000 a year payment to the government? Or they should head home and go hire an American,” he added.

The actual order, however, had different guidance and the discrepancy led to the frantic letters, according to the experts. The order said that the fee was a one-time charge that would only cover first-time applicants, which led to many companies sending frantic letters to their H1-B employees urging them not to leave the country, according to the American Immigration Council’s Robbins.

He told ABC News that his organization received reports of H1 visa holders who were overseas frantically booking flights to return to the U.S. during the weekend because they and their employers had no concrete information about their legal status.

“It’s thrown everyone into a disarray, and there are still questions as to how this will affect companies and their employees,” he said.

Representatives for Meta, Amazon, Apple and Google did not respond to ABC News’ requests for comment. Representatives from Microsoft declined to comment.

Robbins said that there will likely be legal challenges to the executive order. Federal law allows USCIS to collect fees only for the purpose of processing, since the agency is totally funded by fees, and the president’s power to change immigration law is murky, according to Robbins.

 In 2018, the Supreme Court ruled that the president’s travel ban was constitutional since he based it off national security concerns. However, two years later, a California federal court blocked a Trump executive order that limited the approval of H1-B visas during the pandemic.

“Stay tuned,” Robbins said when asked about more details about legal challenges.

Ripple effects
Whether or not Trump reverses his order either voluntarily or through the courts, the experts said that the American economy — especially the tech industry — will feel the effects of the move for years to come.

Morrisett said that he’s already heard concerns from Cornell Tech’s international students about their future job prospects in America in the wake of the order.

“When a student comes to study here, they get exposed to the tech ecosystem, they have a great idea, they want to create a company, and the start-ups have the tools to make that happen,” he said. “Now there are fewer incentives for them to stay in the country and foster that idea if they don’t have that visa.”

Morrisett added that the H1-B order, combined with the administration’s other actions to limit immigration such as Trump’s travel ban, increased deportation efforts and anti-immigration rhetoric, has tarnished America’s luster in the eyes of current and prospective foreign engineers.

“It is all compounding to the message, ‘We don’t want you in the United States,'” he said. “These are some of the smartest people in the world and they’re saying, ‘OK. We’ll go somewhere else.'”

Anderson said the talent won’t be the only group looking to more welcoming pastures. He noted that companies will be inclined to expand their presence internationally, countering Trump’s goal to strengthen America’s tech footprint.

“Even the smallest firms have international offices and if they want to get that skilled talent, they will go wherever they need to retain them,” Anderson said.

Robbins reiterated that there is definitely a need for reforms for the county’s immigration policies, including the H1-B program, but said leaders must recognize that the visa has been one of the most successful initiatives to expand the country’s tech industry and should not be hampered.

“Putting on a flat fee that privileges large companies over small ones, or incentivizes talent to go overseas or incentivizes companies to set up shop overseas, is not an answer,” he said.

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