(NEW YORK) — The online brokerage that promised to “de-mystify finance for all” agreed Wednesday to pay nearly $70 million to resolve allegations it misled millions of customers, approved trades for thousands of ineligible customers and failed to supervise technology that accepted customer orders.
The sanctions are the largest financial penalty ever ordered by the Financial Industry Regulatory Authority, which said it reflected the “scope and seriousness” of Robinhood’s violations.
The investing platform will pay regulators $57 million, along with $12.6 million in restitution with interest to thousands of harmed customers.
“This action sends a clear message — all FINRA member firms, regardless of their size or business model, must comply with the rules that govern the brokerage industry, rules which are designed to protect investors and the integrity of our markets. Compliance with these rules is not optional and cannot be sacrificed for the sake of innovation or a willingness to ‘break things’ and fix them later,” said FINRA’s Jessica Hopper in a statement announcing the regulatory enforcement action.
Robinhood attracted regulatory scrutiny earlier this year when investors used it to speculate on GameStop, AMC Entertainment and other so-called meme stocks that seemed to increase in value based on social media frenzy without the underlying financials. However, FINRA suggested its investigation stretched back five years.
During certain periods since September 2016, the firm has negligently communicated false and misleading information to its customers, FINRA claimed, concerning whether customers could place trades on margin, how much cash was in customers’ accounts, how much buying power or “negative buying power” customers had, the risk of loss customers faced in certain options transactions and whether customers faced margin calls.
FINRA pointed to the suicide of one Robinhood user who in a note found after his death, “expressed confusion as to how he could have used margin to purchase securities because, he believed, he had not ‘turned on’ margin in his account.” Robinhood also displayed to this individual, as well as others, inaccurate negative cash balances, FINRA said.
The regulating authority also accused Robinhood of failing to exercise due diligence before approving customers to place options trades, relying instead on algorithms with limited oversight. The firm also failed to supervise the technology it relied on to provide its broker-dealer services, FINRA said.
In settling the matter through the fine, Robinhood neither admitted nor denied the charges, but consented to the entry of FINRA’s findings.
“Robinhood has invested heavily in improving platform stability, enhancing our educational resources, and building out our customer support and legal and compliance teams,” Robinhood spokesperson Jacqueline Ortiz Ramsay told ABC News. “We are glad to put this matter behind us and look forward to continuing to focus on our customers and democratizing finance for all.”
(NEW YORK) — An updated count of in-person votes in New York City’s Democratic mayoral primary still shows Brooklyn Borough President Eric Adams maintaining a close lead, but it also shows a razor-thin margin between former consul to Mayor Bill de Blasio Maya Wiley and former Sanitation Commissioner Kathryn Garcia in the penultimate round of voting.
The New York City Board of Elections released an updated unofficial count of ranked choice votes on Wednesday afternoon, after candidates and officials sharply criticized the BOE for counting over 130,000 test votes in an initial release of vote tallies for the city’s ranked-choice Democratic mayoral primary.
Wednesday’s count showed Eric Adams holding 31.8% of the vote in the first round, with Maya Wiley following with 22.2% and Kathryn Garcia third with 19.3%.
But by the eighth round, with all of the other candidates eliminated and their votes allotted to others, Garcia led Wiley by only 347 votes.
“While we remain confident in our path to victory, we are taking nothing for granted and encourage everyone to patiently wait for over 124,000 absentee ballots to be counted,” Garcia said in a statement on Wednesday night.
As of Wednesday evening, the BOE has received over 125,000 absentee ballots, none of which are included in the unofficial count.
“Yesterday’s ranked choice voting reporting error was unacceptable and we apologize to the voters and to the campaigns for the confusion,” the BOE said in a statement released alongside the updated figures.
The Board of Elections removed the initial results from its website late Tuesday, and tweeted a statement around 10:30 p.m. ET that admitted to including test votes in the released figures.
“When the cast vote records were extracted for the first pull of RCV results, it included both test and election night results, producing approximately 135,000 additional errors,” the BOE said. It committed to removing the test votes and accurately recounting.
Common Cause New York Executive Director Susan Lerner said on Tuesday that “a mistake by a low-level junior staffer” caused the miscount.
After the Board of Elections’ admission, Adams struck a conciliatory tone.
“We appreciate the Board’s transparency and acknowledgement of their error,” Adams said in a statement late Tuesday. “We look forward to the release of an accurate, updated simulation, and the timely conclusion of this critical process.”
He had initially questioned the results, with Wiley going further in criticizing the board.
“This error by the Board of Elections is not just [the] failure to count votes properly today, it is the result of generations of failures that have gone unaddressed,” Wiley said in a statement on Tuesday night. “We have once again seen the mismanagement that has resulted in a lack of confidence in results … because those who implement [election laws] have failed too many times.”
Garcia called the count error “deeply troubling” and said it “requires a much more transparent and complete explanation.”
“I am confident that every candidate will accept the final results and support whomever the voters have elected,” she said in a statement on Tuesday night.
Mayor Bill de Blasio told reporters on Wednesday morning that what happened is “indicative of the fact the Board of Elections is broken, structurally broken. I don’t know how many times we are going to have this conversation. We can no longer have a partisan Board of Elections.”
Representatives from both the Democratic and Republican parties sit on the Board.
Lerner called for reforming the Board as well, adding: “The system is designed for the 19th century, and we need to bring it into the 21st century.”
“It’s like a rookie mistake,” Rob Richie, president and CEO of FairVote, a nonpartisan organization advocating for voting reforms, said in an interview with ABC News. “Every voting equipment process has to be tested, and it’s a very elementary part of it, which is you clear the data after you do your tests.”
The Board of Elections has faced scrutiny before for election errors. Last September, it erroneously mailed at least 100,000 absentee ballots with incorrect names and addresses.
Richie said that ranked-choice voting itself, which New Yorkers experienced for the first time in the primary, is not to blame, and next time the BOE could possibly run daily vote tallies and accept additional support from developers of the tabulation software.
“I think a lot of people would have expected it to be lucky to get turnout [like] what we got eight years ago, when Bill de Blasio ran,” Richie said. “Well, it’s much bigger than that, right? It’s like more than 25% more votes.”
ABC News’ Aaron Katersky and Averi Harper contributed to this report.
(MILWAUKEE) — In Wisconsin, 95% of COVID-19 deaths since March were among locals who were unvaccinated or not fully vaccinated, state health officials said.
The state recorded 21 COVID-19 deaths that were “breakthrough cases,” meaning patients who caught coronavirus 14 days or more after completing the vaccine series, out of 433 total deaths from March 1 to June 24. Such cases accounted for just 5% of deaths in that time frame, Wisconsin’s Department of Health shared with ABC News.
Data shows the chance of catching COVID-19 after getting vaccinated is very low.
Wisconsin reported 1,572 confirmed and probable “breakthrough cases,” which amounted to 1% of total COVID-19 cases from Jan. 1 through June 24. The number of “breakthrough cases” is also a small fraction of the more than 2.9 million fully vaccinated people in the state.
“As you know, the science is clear; vaccines work in the real world. They save lives. And if you are fully vaccinated, you are protected. All three vaccines have been tested and proven to be safe and effective,” Wisconsin Department of Health Services spokesperson Elizabeth Goodsitt told ABC News. “The vaccine not only works to fight off disease, but it reduces the risks for hospitalizations and deaths, and symptoms tend to be milder if someone does get sick after receiving the vaccine than if they didn’t get one at all.”
Doctors in Wisconsin say the state’s data matches what they’re seeing unfolding in hospitals.
“The vast majority of people who we are seeing in our hospitals, and who are dying of COVID-related complications are unvaccinated, unfortunately,” Dr. Joyce Sanchez of Froedtert Hospital and the Medical College of Wisconsin told local ABC affiliate WISN.
As of Wednesday, half of Wisconsinites have received at least one dose of the COVID-19 vaccine and 46.9% have completed the vaccine series, according to state data.
The state’s latest data reports a seven-day average of 73 new confirmed COVID-19 cases a day and a seven-day average test positivity rate of 0.9%.
Overall in the pandemic, Wisconsin has recorded more than 612,700 cases and over 7,000 confirmed deaths and more than 800 probable deaths.
(NEW YORK) — Former President Trump’s namesake company expects to face criminal charges by the Manhattan District Attorney’s Office as soon as Thursday, sources told ABC News.
The Trump Organization and its longtime chief financial officer, Allen Weisselberg, are expected to face charges of tax fraud, the sources said. The charges would be the first brought by prosecutors following their two-year investigation of the former president and his company.
A Trump Organization spokesperson declined to comment, as did a spokesperson for the Manhattan District Attorney’s Office.
The expected charges, which have not been publicly disclosed, are believed to involve fringe benefits given to employees, including Weisselberg, the sources said. Investigators, who fought all the way to the U.S. Supreme Court for access to the former president’s personal and business tax returns, have been examining whether the company and Weisselberg properly accounted for those forms of compensation, said sources.
ABC News has previously reported that prosecutors zeroed in on the perks after Weisselberg’s daughter-in-law Jennifer revealed the existence of a rent-free apartment used by her estranged husband, Weisselberg’s son Barry.
Attorneys for the former president’s company were told to expect charges last week by Manhattan District Attorney Cy Vance’s staff, the sources said.
“In my more than 50 years of practice, never before have I seen the District Attorney’s Office target a company over employee compensation or fringe benefits,” Ronald Fishchetti, an attorney for former President Trump, told ABC News in a statement last week, adding the case in his view is “completely outrageous.”
Trump himself is not expected to be part of these criminal charges. He has denied all wrongdoing and has dismissed the investigation as being politically motivated, calling it “a continuation of the greatest Witch Hunt in American history.”
(WASHINGTON) — The House approved a resolution Wednesday that would green-light the creation of a select committee to investigate the Jan. 6 insurrection.
The resolution required a majority vote in the House for the committee to be formed and it passed along party lines.
The final vote was 222-190.
Republicans have blasted the select committee as too partisan. Even those few Republicans who ultimately decided to impeach the former president earlier this year for his role in inciting the insurrection opted to oppose the select committee in Wednesday’s vote.
GOP Reps. Adam Kinzinger and Liz Cheney, both Trump critics, were the only two Republicans to vote in favor of the select committee with all Democrats.
House Speaker Nancy Pelosi said she will appoint members and announce a chair for the committee at a later time.
Members of the Capitol Police and Metropolitan Police Department were sitting in the Speaker’s box in the House Gallery to watch the vote at Pelosi’s invitation.
After Cheney voted yes, she was spotted paying them a visit and giving several officers a hug, including the family of fallen Capitol Police Officer Brian Sicknick.
Pelosi introduced the resolution earlier in the week, which states the committee will include 13 members. Eight of those members will be selected by Pelosi, while the five others will be selected by House Minority Leader Kevin McCarthy, in consultation with Pelosi.
An aide to the House speaker signaled that she could name a Republican among her eight appointments to the committee.
Pelosi could select either Cheney or Kinzinger to be on the committee as part of her eight appointees, and both have expressed an openness to it.
“January 6th was one of the darkest days in our nation’s history. It is imperative that we establish the truth of that day and ensure such an attack cannot again happen. The Select Committee will investigate and report upon the facts and causes of the attack and report recommendations for preventing any future assault,” Pelosi said in a statement.
The select committee comes after Senate Republicans blocked the creation of a bipartisan, independent commission last month.
“Senate Republicans did Mitch McConnell a ‘personal favor’ rather than their patriotic duty and voted against the bipartisan commission negotiated by Democrats and Republicans. But Democrats are determined to find the truth,” Pelosi said Monday in her statement.
The select committee will be run by House Democrats and it will have subpoena power.
“I’m hopeful that both the speaker and the minority leader appoint people who are honest, sincere in their effort to get at the facts, underlying why Jan. 6 happened, who was responsible for Jan. 6 happening and what can we do to prevent a Jan. 6 insurrection from happening again,” House Majority Leader Steny Hoyer said Tuesday. “All of those facts are necessary for the Congress, but much, much more importantly, necessary for the American people to understand and have knowledge of.”
A chair to run the committee has not yet been announced, but Pelosi told reporters last week that further details would be released soon.
McCarthy, for his part, has said a select committee is not necessary and has bashed it as a politically motivated, partisan act by Democrats.
He has also not indicated who he would appoint to the committee.
McCarthy could be called to testify about a phone call he made to former President Donald Trump on the day of the insurrection. He has yet to fully recount that phone call in a public setting, but he has said he would be willing to testify if asked.
“I have no problem talking to anybody about it,” McCarthy said last week. “I don’t know what the conversations that day would matter as that’s going on.”
House Democratic Chair Hakeem Jeffries told reporters Tuesday he expects McCarthy will be asked to testify before the committee.
“It’s my expectation that whoever winds up chairing the select committee will pursue all available angles in terms of individuals that will be called before the committee to testify and I think that Leader McCarthy has indicated that he’s willing to testify and share the contents of that conversation,” Jeffries said.
Under the resolution text, the select committee does not have a deadline for producing a report.
(WASHINGTON) — Americans can now choose which gender is displayed on their passports, no longer needing medical certification if their preference contradicts supporting documents such as birth certificates, the State Department announced Wednesday.
“Today, I am pleased to announce that the Department will be taking further steps toward ensuring the fair treatment of LGBTQI+ U.S. citizens, regardless of their gender or sex, by beginning the process of updating our procedures for the issuance of U.S. Passports and Consular Reports of Birth Abroad (CRBA),” Secretary of State Antony Blinken said in a statement.
While the most immediate change will be allowing applicants to self-identify as either “M” or “F,” the two current options on forms, the department is working to add a third gender marker for “non-binary, intersex, and gender non-conforming persons,” applying for passports or CRBAs. That step will take more time.
Today we are taking important steps toward ensuring the fair treatment of LGBTQI+ U.S. citizens. https://t.co/tfNnTUQmsp
— Secretary Antony Blinken (@SecBlinken) June 30, 2021
“The process of adding a gender marker for non-binary, intersex, and gender non-conforming persons to these documents is technologically complex and will take time for extensive systems updates,” Blinken said.
The State Department “cannot provide an exact timeline” for when the new gender marker might be available, according to its website.
President Joe Biden promised these changes during his 2020 campaign. “Transgender and non-binary people without identification documents that accurately reflect their gender identity are often exposed to harassment and violence and denied employment, housing, critical public benefits, and even the right to vote,” his website said.
Rodrigo Heng-Lehtinen, deputy executive director of the National Center for Transgender Equality, praised the move.
“Having accurate passports and consistent ID is critical to daily life,” Heng-Lehtinen said in a statement. “It’s necessary for travel, banking, starting a new job and school. Inaccurate IDs open transgender people up to harassment and discrimination. Reforming US passports is a common-sense way to improve the lives of transgender people.”
The new State Department policy takes cues from other countries, according to Blinken.
“In line with the Administration’s commitment to re-engage with allies and partners, the Department is taking these steps after considerable consultation with like-minded governments who have undertaken similar changes,” Blinken said.
The secretary, who last week had the “Progress” flag raised outside his department’s building in Washington, D.C., said he would let engagement with the LGBTQI+ community “inform our approach and positions moving forward.”
“With this action, I express our enduring commitment to the LGBTQI+ community today and moving forward,” he said.
(NEW YORK) — Walmart announced it is launching its own private brand of insulin, which the big box chain says will save customers with diabetes up to 75% on the lifesaving drug.
Walmart’s ReliOn brand will sell private label NovoLog short-acting insulin that is manufactured by the pharmaceutical firm Novo Nordisk.
The analog insulin vials and pens will save customers between 58% to 75% off the cash price of branded insulin products, or up to $101 per vial or $251 per package of “FlexPens,” the retailer said.
The medication will be available in Walmart pharmacies starting this week, and Sam’s Club pharmacies beginning in mid-July.
“We know many people with diabetes struggle to manage the financial burden of this condition, and we are focused on helping by providing affordable solutions,” Dr. Cheryl Pegus, the executive vice president of Walmart Health and Wellness, said in a statement Tuesday. “We also know this is a condition that disproportionately impacts underserved populations.”
Pegus said Walmart’s new insulin offerings are part of their commitment to improve access and lower the cost of care.
The medical costs for patients with diabetes can be an estimated $9,601 per year, according to the American Diabetes Association. On average, the advocacy group says people diagnosed with diabetes have medical expenditures approximately 2.3 times higher than what expenditures would be in the absence of diabetes.
“We welcome all affordable solutions that make diabetes management more accessible to millions of Americans living with diabetes,” Tracey D. Brown, the chief executive officer of the American Diabetes Association, said in a statement accompanying Walmart’s announcement. “We encourage everyone to ask their health care provider questions to better understand what the right and affordable treatment is for their unique medical needs.”
The price of insulin in the U.S. has spiked significantly over the past decade, and remains dramatically higher than in most other developed countries. The average gross manufacturer price for a standard unit of insulin in 2018 in the U.S. was more than 10 times the price compared to the same sample from 32 foreign countries that are part of the Organisation for Economic Co-operation and Development, according to a 2020 U.S. Department of Health and Human Services report. The average U.S. price was $98.70, compared to $8.81 in the 32 non-U.S. OECD countries.
Despite years of advocacy for policy changes to keep the cost of the drug low, Americans living with diabetes have seen little reprieve from federal lawmakers to address the skyrocketing prices.
(NEW YORK) — With berries being a staple fruit of the summer, check your fridge to make sure your container of Dole fresh blueberries is safe to eat.
Dole Diversified North America, Inc. has voluntarilly recalled a limited number of cases of its blueberries due to potential Cyclospora contamination.
The impacted products were packaged in a variety of plastic clamshell container sizes and distributed in four U.S. states — Illinois, Maine, New York and Wisconsin — and two Canadian provinces: Alberta and British Columbia.
The U.S. Food and Drug Administration has advised consumers to check any Dole fresh blueberry products in their homes and discard those matching the production description, UPC codes or product lot codes it has listed.
Check here for a full list of UPC codes, where to find the printed product lot code on the label and more.
“Cyclosporiasis is an intestinal infection caused by the Cyclospora parasite. A person may become infected after ingesting contaminated food or water,” the FDA said. “Common symptoms include severe abdominal pain, diarrhea, nausea and vomiting, body aches and fatigue. The infection is treated with antibiotics and most people respond quickly to treatment.”
At the time of publishing, there have been no illnesses reported in association with the recall. No other Dole products have reportedly been affected.
(MOSCOW) — Russia’s President Vladimir Putin used his annual marathon call-in show to try to persuade Russians to get vaccinated against the coronavirus, as the country faces a devastating third wave of the epidemic.
The show is a fixture of Putin’s two-decade rule and sees him take dozens of questions from ordinary citizens over around three hours while sitting on stage in front of phone banks where volunteers field calls.
Besides big questions of the day — around the economy or relations with Western countries — Putin also takes appeals from Russians asking him to help with local problems, down to fixing the pot-holed road in their town.
The heavily promoted and carefully choreographed show allows Putin to present himself as a leader in touch with even the smallest, everyday concerns of his people and able to solve any problem. After a question is put to Putin, local officials will usually scramble to fix the issue, making getting an appeal onto the show akin to winning the lottery.
Russian state television said around 2 million questions were sent in for Putin, who was on air for nearly four hours Wednesday.
Here are some of the key moments.
‘The only way to overcome the epidemic is with the help of vaccination’
A devastating third wave of the coronavirus pandemic is swamping Russia, left almost unchecked with few lockdown restrictions and a very slow pace of vaccination caused by widespread reluctance among Russians.
Only around 11% of Russians are currently fully vaccinated, and two-thirds are estimated to not want to get it. In the past two weeks, that has prompted Moscow and several other regions to introduce mandatory vaccinations for most public-facing workers — such as teachers and restaurant staff — making Russia the only country in the world to introduce large-scale obligatory vaccination.
Putin spent a significant part of the call urging Russians to get vaccinated, saying it was the way to avoid lockdowns. But while he said the mandatory vaccination in some regions was correct, he stopped short of giving his full-throated backing to the controversial decision, instead putting it on local authorities.
“I have said, as you know, that I don’t support mandatory vaccination. I continue to hold to that point of view,” Putin said. But he added it was necessary in some regions for it to be obligatory for “certain categories” of citizens to be vaccinated.
“It’s very well-known,” Putin said, “the only way to overcome the further spreading of the epidemic is with the help of vaccination.”
Throughout the pandemic, Putin has left announcing unpopular decisions, such as partial lockdowns, to regional authorities, which analysts say is to avoid taking backlash for them.
‘If I said I got the jab, that’s how it is’
Putin himself has faced criticism for refusing to say which of Russia’s three vaccines he has taken and, unusually, not releasing video of him getting vaccinated, even after he said he had received both shots early this year.
In the call-in, Putin for the first time said he received Russia’s primary vaccine, Sputnik V. He said he had hesitated between it and another Russian vaccine, EpiVacCorona made by the Siberian Vektor Institute, but opted for Sputnik V because it gave longer lasting immunity.
“I started from the basis that I need to be protected as long as possible, and so I took the decision for myself to get Sputnik V,” Putin said.
He said he briefly had a temperature of 37.2 Celsius overnight after getting the jab, but by morning it had passed.
Asked why he hadn’t shown himself getting the vaccine, Putin said he thought it wasn’t important.
“I hope that the majority of the citizens of country understand that if I said I got the jab, that’s how it is,” Putin said.
On confrontation with British warship near Crimea
Putin downplayed an incident last week where Russian fighter jets and ships confronted a British navy warship as it pointedly sailed through waters close to Crimea to demonstrate Western countries don’t recognize Russia’s occupation of the peninsula.
Putin called the incident a “provocation” from Britain and the United States, but dismissed a question asking if it had brought Russia close to World War III.
“Even if we had sunk that ship its difficult to imagine that the world would be on the edge of a third World War. Because those who are doing that know they won’t come out the winners in that war,” Putin said.
On social media platforms
Recently, Russia’s state censor threatened to block Twitter and other foreign social media platforms as the Kremlin has sought to bring Russia’s internet under tighter control amid a broader crackdown on dissent in the country.
Authorities have demanded the platforms remove “extremist” content — in reality often including calls to peacefully protest against Putin.
There has been growing speculation Russia might follow through in blocking platforms like Twitter, but in the call-in Putin said it did not plan to.
“We don’t intend to block anyone, but there are problems which consist in that they tell us to push off, when they don’t fulfil our demands and Russian laws,” Putin said.
He said foreign social media platforms must obey Russian laws to store data locally, saying to do otherwise was insulting to Russia.
‘Like the surface of Venus’
Putin made unusually strong warnings about the need to prepare for the impact of climate change on Russia. He frequently takes an ambiguous position on global warming, normally acknowledging it but also often questioning the role of humans in it, as might be expected from the ruler of a country reliant on exporting fossil fuels.
Asked by a viewer why “nature is going crazy,” Putin said the growing frequency of extreme weather was the result not just of humans but of “global processes.” He said humans must minimize their impact or “there might be irreversibly consequences.”
“Which might lead our planet to the state of Venus, where temperatures on the surface reach 500 degrees,” Putin said.
He noted that 70% of Russia’s territory was located in northern regions, large swathes of which are permafrost.
“If all that will melt, it will lead to very serious social and economic consequences. And we must, of course, be ready for that,” Putin said.
He said Russia will fulfil all its obligations to the Paris Climate Accord and that its government had prepared a strategy for handling the impact of climate change on key sectors of Russia’s economy.
‘Petitioning the tsar’
The call-in show plays heavily on an old trope in Russia of petitioning the tsar, where ordinary people plead with Putin to solve their local problems, from settling employment disputes to poor gas supplies.
Putin usually promises to look into the issues and local officials jump into action, with the implicit threat that those who fail to will face punishment. It creates the impression of Putin as a benevolent but severe ruler, dispensing justice and righting the wrongs of lower-level officials if only he can be reached.
Elena Kalinina from the Siberian region of Kemerovo appealed to Putin for help getting the crumbling roof of her grandson’s school repaired. She said after she sent her appeal, local education officials threatened her to withdraw it.
Putin promised the woman the school would be included in a renovation program and said, menacingly, “those who are threatening you would be better looking at their own problems.”
Kemerovo’s governor within hours ordered local officials to look into the state of the school’s roof and to find out who had threatened Kalinina.
The show is an attempt to portray Putin as “tsar of the Russias, defender of the nation, masterful chief exec with all the facts at his fingertips and stern and loving father of his people,” Mark Galeotti, an expert on Russian politics and an associate fellow at the Royal United Service Institute, wrote on Twitter before the show.
On his potential successor
Putin last year changed Russia’s constitution to allow him to potentially remain in office until at least 2036, having already been president for four terms. Although the move was partly aimed at heading off possible succession fights, speculation over how Putin might handle his eventual exit from power hasn’t gone away.
One caller asked Putin if there was anyone he trusted to handover power to.
“On the one hand, there are no sacred places and there are no irreplaceable people,” Putin answered. “On the other hand, of course, my responsibility consists in giving recommendations to those people who will pretend to the position of the president. Of course, when the time comes, I will be able to say who, in my opinion, is worthy to head Russia.”
(WASHINGTON) — In the midst of a historic heatwave creating prime conditions for a historic wildfire season, President Joe Biden announced Wednesday he plans to raise the federal firefighter pay to at least $15 an hour and offer new retention incentives amid turnover, as the White House seeks to boost its wildfire preparedness.
“Because of climate change, wildland firefighting is no longer a seasonal endeavor,” said a fact sheet from the White House.
Biden discussed the plans on Wednesday while meeting virtually with governors from Western states, Cabinet officials and partners from the private sector to discuss wildfire preparedness.
He began by invoking the devastating images from last year.
“We’re remembering the horrific scenes from last year. Orange skies that looked like End of Days, smoke and ash that made the air dangerous to breathe, more than 10 million acres burned, billions of dollars in economic damage, families that lost their homes and everything they own. And too many, too many lost lives,” Biden said.
And with that stark remembrance, Biden noted that this year is already threatening to be worse and argued that climate change shouldn’t be a partisan issue.
“And this year, we — they could be even tougher based on the weather patterns. You know, California and some other places, the drought conditions are twice … what they were last year.”
He noted that there are more than 9,000 firefighters already deployed across the Western U.S., and it’s only June.
The president also addressed head-on those who are dealing with historic highs this week, calling for people to take care of one another.
“I want to note that the extreme heat we’re seeing in the west is not only a risk amplifier for wildfires, it’s a threat in and of itself. People are hurting. It’s more dangerous for kids to play outside. Roads are buckling under the heat. Again, I need not tell all of you: We need people to check on their neighbors especially seniors who may need a helping hand,” he said.
The meeting and policy move came after Biden expressed his dismay at the federal wage while visiting the Federal Emergency Management Agency last week.
“I just realized — I didn’t realize this, I have to admit – that federal firefighters get paid $13 an hour. That’s going to end in my administration. That’s a ridiculously low salary to pay federal firefighters,” he said at the time.
The sentiment was echoed by an administration official previewing Biden’s plan on a call Tuesday night.
The official said that, for this year, federal firefighters’ pay raise will come in the form of “provisional bonuses” and that permanent firefighters working on the front lines will receive up to a 10% retention incentive. Temporary workers can also qualify to receive some incentive pay.
The administration also plans to extend seasonal hiring of firefighters, hire more firefighters and add surge capacity by training more federal employees and military service members to be prepared to support wildfire fighting efforts.
“The goal here this year, because we have had a very short runway in getting prepared, has been to find ways to address what we learned, which is that there is this challenge with respect to both recruitment and retention of firefighters that we need across the nation,” the official said.
The Biden White House is also announcing a series of actions to help fight fires and improve how the government responds in the short and long term.
“We’re going to work on additional measures with Congress to move beyond these short-term solutions to address, longer-term needs with respect to compensation and benefits, and work life balance reforms for federal wildlife, land, firefighters,” the official added.
As of last Wednesday, there were at least 50 large wildfires burning more than half a million acres across 11 states — mostly in the West.
Since 2015, the U.S. has had roughly 100 more large wildfires every year than the year before, according to the White House, and the 2021 wildfire season is already outpacing the last.
The White House is also making new preparations for major impacts to power grids, increasing aviation capacity to respond to fires and developing new technologies, including satellites, to improve early detection of fires along with apps, maps and resources so Americans can access information from their phones.
