DOJ reaches $30 million deal with PayPal over minority-owned business program

DOJ reaches  million deal with PayPal over minority-owned business program
DOJ reaches $30 million deal with PayPal over minority-owned business program
In this photo illustration, the PayPal logo is displayed on the screen of a smart tablet. (Sheldon Cooper/SOPA Images/LightRocket via Getty Images)

(WASHINGTON) — PayPal has agreed to waive $30 million in processing fees in order to resolve a federal investigation into an investment program that sought to boost Black and minority-owned businesses, the Justice Department announced Tuesday.

The probe is just one of a number launched under the Trump Justice Department scrutinizing companies that launched diversity, equity and inclusion (DEI) initiatives that Republicans have cast as unlawful and discriminatory.

DOJ had been probing whether PayPal’s program, which was launched in 2020 following the killing of George Floyd amid social unrest around the country, violated a federal law prohibiting creditors from discriminating against applicants based on race.

In order to avoid further investigation, the company has agreed to waive processing fees for roughly $1 billion in transactions — estimated at $30 million — “for eligible American small businesses that are veteran-owned or engaged in farming, manufacturing, or technology.”

The announcement by DOJ does not explain why PayPal’s transaction fee waivers will be directed to those specific classes of small businesses.

It has also agreed to launch a new small business initiative that does not account for “the race or national origin of the business owners.”

“This Department of Justice is delivering on President Trump’s vow to root out illegal DEI from every corner of corporate America,” Acting Attorney General Todd Blanche said in a statement announcing the settlement. “American corporations are on notice: you will face our aggressive enforcement if you use race or national origin to discriminate against qualified Americans.”

The settlement does not include any admission of wrongdoing by PayPal, and under the agreement, the DOJ acknowledges it “has not made any determinations or findings regarding PayPal violating [the Equal Credit Opportunity Act] or any other federal law related to the economic opportunity fund.”

“For more than two decades, PayPal has helped small businesses start, scale, and thrive by expanding access to digital financial tools,” a PayPal spokesperson said in a statement to ABC News. “We’re excited to launch the Small Business Initiative to infuse American small businesses with even more economic opportunity.”

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Dr. Marty Makary intends to resign as FDA commissioner: Sources

Dr. Marty Makary intends to resign as FDA commissioner: Sources
Dr. Marty Makary intends to resign as FDA commissioner: Sources
Marty Makary attends an executive order signing in the Oval Office on April 18, 2026.(Allison Robbert/For The Washington Post via Getty Images)

(WASHINGTON) — Food and Drug Administration Commissioner Marty Makary intends to resign on Tuesday, two sources familiar with the matter told ABC News.

His departure was in the works after he clashed publicly with lawmakers, major pharmaceutical companies and President Donald Trump himself. He was scheduled to testify on Capitol Hill on Wednesday.

Makary, who is a surgeon by training, gained notoriety during the COVID-19 pandemic, arguing against masks for children and vaccine mandates, and criticizing the Centers for Disease Control and Prevention (CDC) for citing Israeli data in recommending boosters rather than conducting its own research.

Since taking office in March 2025, the commissioner has focused his efforts on reshaping vaccine policy in the U.S. and transforming American diets.

Makary appeared in a video on X alongside Kennedy when the secretary announced in May 2025 the removal of the COVID-19 vaccine from the CDC’s immunization schedule for “healthy children and pregnant women.”

“There’s no evidence healthy kids need it today and most countries have stopped recommending it for children,” Makary said at the time.

Last year, Makary appeared at a news conference announcing the HHS and FDA would be implementing a series of measures to phase out eight artificial food dyes and colorings from America’s food supply by the end of 2026.

Makary said at the time that the agencies are looking to revoke authorization for two synthetic food colorings and to work with the food industry to eliminate six remaining synthetic dyes used in cereal, ice cream, snacks, yogurts and more — claiming American children “have been living in a toxic soup of synthetic chemicals.”

Makary also supported Kennedy’s updated federal dietary guidelines earlier this year. The guidelines recommended that Americans limit highly processed foods and refined carbohydrates but also advocated for consuming red meat and full-fat dairy, a reversal of past nutrition guidance.

“For decades, we’ve been fed a corrupt food pyramid that has had a myopic focus on demonizing natural healthy saturated fats, telling you not to eat eggs and steak and ignoring a giant blind spot: refined carbohydrates, refined sugars, ultra-processed foods,” Makary said. “In this new guidance, we are telling young people, kids, schools, you don’t need to tiptoe around fat and dairy. … You don’t need to push low-fat milk to kids.”

In early May, Trump criticized Makary for not moving quickly enough to ​approve flavored vape and nicotine products, according to a report from The Wall Street Journal.

Trump’s advisers informed him that Makary was delaying the president’s effort to “save” vaping,” a pledge Trump made on social media during his presidential campaign, according to the Journal.

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Shooting near Harvard University leaves 2 with life-threatening injuries, suspect ID’d

Shooting near Harvard University leaves 2 with life-threatening injuries, suspect ID’d
Shooting near Harvard University leaves 2 with life-threatening injuries, suspect ID’d
Massachusetts State Police said at least one person was left wounded after a gunman began shooting into traffic in Cambridge on Monday afternoon. (ABC News)

(CAMBRIDGE, Mass.) — Two people were shot and left with life-threatening injuries after a gunman began shooting into traffic in Cambridge on Monday afternoon near Harvard University, according to officials.

Middlesex County District Attorney Marian Ryan said during a press briefing after the incident that a gunman with an assault-style rifle was “actively firing in an erratic fashion at various vehicles.”

The shooting occurred in the vicinity of Memorial Drive and River Street before 1:30 p.m.

A trooper and a civilian, a former Marine, fired their weapons and struck the gunman, who was later identified as Tyler Brown, multiple times, according to the DA. Brown is under arrest and is hospitalized, Ryan said.

Brown is now facing six new felony charges, including two for assault with intent to murder.

He was under probation supervision for a previous crime, according to the DA.

Brown was sentenced to five to six years in state prison and three years of probation in August 2021 after he fired at Boston Police. Brown pleaded guilty to eight charges, including armed assault with intent to murder and attempted assault and battery by means of discharging a firearm, according to a 2021 statement from the Suffolk District Attorney’s Office.

Brown was also previously required to undergo a mental health evaluation and treatment, according to the DA’s office.

Brown was also on probation at the time of the 2021 incident for a 2014 assault and battery with a dangerous weapon (knife) and witness intimidation conviction, according to the DA’s office. He was sentenced to four to five years in state prison for violating his probation to be served concurrently.

The DA’s office had recommended Brown be sentenced 10 to 12 years, criticizing the lower sentence.

“My office recommended a significant sentence for Mr. Brown given the nature of his offenses and the trauma and harm he inflicted. I am disappointed in the sentence that was imposed,” then-District Attorney Rachael Rollins said in a 2021 statement.

The two people who were struck by gunfire were in their vehicles at the time.

Aerial footage from ABC News’ Boston affiliate WCVB showed the gunman being apprehended by police at the scene.

WCVB footage also showed a black Dodge sedan off the side of the road after an apparent crash.

A rifle was seen on the grass in the area, according to WCVB.

Massachusetts Governor Maura Healey said in a statement that there is no ongoing threat to the public, but asked that residents “avoid the area to allow public safety personnel to do their work.”

Lisa Schill, a witness to the shooting, told WCVB she was in a school van on the way to pick up kids at school. She said she left the van and began running from the incident on foot.

“I was running for my life,” Schill told the publication.

ABC News’ Chris Barry contributed to this report.

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Todd Blanche says media ‘should not be surprised’ if they’re subpoenaed over national security stories

Todd Blanche says media ‘should not be surprised’ if they’re subpoenaed over national security stories
Todd Blanche says media ‘should not be surprised’ if they’re subpoenaed over national security stories
Acting Attorney General Todd Blanche speaks to the Border Security Expo at the Phoenix Convention Center on May 6, 2026 in Phoenix, Arizona. (Photo by Gage Skidmore/Getty Images)

(NEW YORK) — Acting Attorney General Todd Blanche said Tuesday that members of the media “should not be surprised” if they receive subpoenas for information related to their sources on stories pertaining to national security-sensitive matters, following a Wall Street Journal report that the outlet received subpoenas stemming from its coverage of the war in Iran.

“Prosecuting leakers who share our nation’s secrets with reporters, in turn risking our national security and the lives of our soldiers, is a priority for this administration,” Blanche said. “Any witness, whether a reporter or otherwise, who has information about these criminals should not be surprised if they receive a subpoena about the illegal leaking of classified material.”

This is a developing story. Please check back for updates.

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2 foreign companies, supervisor indicted in 2024 Baltimore bridge crash

2 foreign companies, supervisor indicted in 2024 Baltimore bridge crash
2 foreign companies, supervisor indicted in 2024 Baltimore bridge crash
: In this aerial view, salvage crews continue to remove wreckage from the Dali six weeks after the cargo ship collided with the Francis Scott Key Bridge May 08, 2024 in Baltimore, Maryland. (Photo by Chip Somodevilla/Getty Images)

(BALTIMORE) —  The federal government indicted two foreign companies Tuesday in connection with the cargo ship crash that collapsed Baltimore’s Francis Scott Key Bridge in 2024.

A shoreside superintendent of the M/V Dali, the vessel involved in the crash, was also charged by federal prosecutors.

This is a developing story. Please check back for updates.

 

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Man arrested in Paris for allegedly planning terror attack with Louvre as potential target

Man arrested in Paris for allegedly planning terror attack with Louvre as potential target
Man arrested in Paris for allegedly planning terror attack with Louvre as potential target
French police officers stand in front of the Louvre Museum after a robbery in Paris, France, on October 19, 2025. Robbers break into the Louvre and flee with jewelry on the morning of October 19, 2025. (Photo by Jerome Gilles/NurPhoto via Getty Images)

(PARIS) — A man was arrested in France for allegedly planning a terror attack that may have sought to target the Louvre Museum in Paris, according to the French Interior Ministry and prosecutors in Paris.

Officials told ABC News the investigation began after the suspect was stopped by police in Paris on April 28, where he was allegedly driving with a forged license. Officials said the man’s phone was accessed after that traffic stop.

The Interior Ministry said the attack that was allegedly being planned would probably have targeted the museum, which is the world’s most-visited, but said the man was arrested before details of the attack had been fully formulated.

Police said the suspect also was planning an attack specifically targeting members of the Jewish community in Paris, the ministry said.

The man, a 27-year-old Tunisian national, was arrested on May 7 and was in pre-trial detention, officials said. ABC News has reached out to the man’s lawyer for comment.

An investigation was opened on Monday “on the grounds of terrorist association with the goal to commit crimes against individuals,” according to the French Anti-Terrorism Prosecutor’s Office.

Investigators accessed the suspect’s phone, officials said, and found jihadist propaganda videos, hundreds of images of firearms and knives, ISIS-related imagery used on social media and encrypted communications with overseas contacts, who are believed to be potentially linked to extremist networks.

The suspect, according to what was found on his devices, discussed knowledge of access routes into the Louvre, possible placement of explosives inside the museum and production of ricin toxin, officials said.

The man who was arrested arrived in Europe via Lampedusa, Italy, in 2022 and was residing in the Paris region without residency status, officials told ABC News.

Investigators reported to prosecutors that the suspect denied any intent to commit a crime during questioning, claiming his activities were driven by “curiosity” about ISIS ideology.

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British Prime Minister Keir Starmer faces down Labour Party rebels amid demands he resign

British Prime Minister Keir Starmer faces down Labour Party rebels amid demands he resign
British Prime Minister Keir Starmer faces down Labour Party rebels amid demands he resign
British Prime Minister and Labour leader Keir Starmer speaks to members of the media following local elections at Kingsdown Methodist Church on May 08, 2026 in London, England. (Photo by Leon Neal/Getty Images)

(LONDON) — British Prime Minister Keir Starmer met with his Cabinet on Tuesday amid pressure from scores of his own Labour Party lawmakers to resign, following the party’s poor performance in last week’s local elections in which it came in second to the right-wing populist Reform Party.

Starmer met with his Cabinet at the prime minister’s Downing Street residence in London, with BBC News reporting that the prime minister said during the meeting that he refused to step aside.

The turmoil comes ahead of the King’s Speech and official opening of Parliament on Wednesday, an annual ceremonial event, during which King Charles III will set out the incumbent Labour government’s legislative agenda for the coming term.

Scores of Labour members of parliament have written to Starmer asking him to step down following last week’s local elections — as of Tuesday morning, the number was reportedly more than 81 — representing about 20% of the party’s members of the House of Commons.

But those lawmakers have not publicly backed a single potential leadership challenger, which is required to trigger a leadership contest. Starmer has said he will stand again in the event of a new leadership contest.

On Tuesday, Miatta Fahnbulleh — the minister for devolution, faith and communities — became the first government minister to resign in protest of Starmer’s continued leadership. “I urge the Prime Minister to do the right thing for the country and the Party and set a timetable for an orderly transition,” she wrote in a post to X.

Starmer has long said he intends to see out his full five-year term, which began with his party’s 2024 landslide election victory that ended 14 years of Conservative Party government and delivered Labour a historic majority in the House of Commons.

When he came to office, Starmer promised a departure from the policies of his five consecutive Conservative predecessors. But frustration with the pace and scale of reform has grown among some factions of the party during his first two years in power.

In last week’s elections, voters in England chose the leaders of their local councils and — in some cases — mayors. In Scotland and Wales, voters selected members of their devolved national parliaments.

The results were widely interpreted as a repudiation of Labour’s performance to date by British voters. The elections saw Labour lose 1,498 councillors in England and lose control of both the Scottish and Welsh parliaments, prompting immediate demands for change in Downing Street.

Labour held 1,068 councillors but were leapfrogged by the populist, anti-immigration and right-wing Reform Party — led by Nigel Farage — which emerged with 1,452 councillors, the most of any party.

On Monday, Starmer said during a speech, “I know that people are frustrated by the state of Britain, frustrated by politics and some people are frustrated with me. I know I have my doubters, and I know I need to prove them wrong, and I will.”

“We are not just facing dangerous times, but dangerous opponents, very dangerous opponents,” he said, framing Labour as the only was to prevent the country heading down a “very dark path.”

Defense Minister John Healey was among those who publicly backed the prime minister on Tuesday.

“People are worried about current conflicts and looming global crises. They expect their government to lead the country through, as the PM is doing,” he wrote on X.

“More instability is not in Britain’s interest. Our full focus now must be on dealing with immediate economic & security challenges,” Healey added.

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Kash Patel set to testify on Capitol Hill amid controversies

Kash Patel set to testify on Capitol Hill amid controversies
Kash Patel set to testify on Capitol Hill amid controversies
FBI Director Kash Patel holds a news conference at Department of Justice headquarters in Washington, DC, on April 27, 2026. (Photo by Kyle Mazza/Anadolu via Getty Images)

(WASHINGTON) — FBI Director Kash Patel is set to be questioned by members of the Senate Appropriations Committee Tuesday afternoon amid several controversies involving the director.

Patel will testify alongside the other heads of the Department of Justice agencies such as the heads of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Marshals Service and the Drug Enforcement Administration.

While it’s a hearing regarding the 2027 budget request, Patel is expected to face questions about a host of issues from the alleged misuse of FBI resources for travel to the story in The Atlantic that alleged he has had “bouts of excessive drinking” and job performance issues.

Patel said last month that he’s “never been intoxicated on the job,” following the report. Patel sued The Atlantic over the article, demanding $250 million in damages.

Asked about the article during an unrelated press conference last month, Patel railed against negative media coverage.

“I can say unequivocally that I never listen to the fake news mafia and when they get louder, it just means I’m doing my job,” Patel said.

In February, Patel joined in on Team USA hockey’s locker room celebrations in Italy shortly after the team won the gold medal — a move that drew scrutiny about his use of FBI resources to attend.

Patel, a hockey fan, was said to have had meetings in Italy prior to attending the game. Ben Williamson, an FBI spokesperson, said on social media that Patel’s trip had been previously scheduled. He added that “any other personal expenses would be reimbursed.”

During the hearing, Patel is also expected to tout his successes at the FBI.

“Whether it’s rebuilding our entire backbone infrastructure, caring more for our workforce, actioning the business side of the house, eliminating bureaucracy, integrating AI, procuring equipment, developing new private sector partnerships – we have delivered the changes you have been requesting for years… and we did it in just over 1 year,” Patel said in a message to the FBI last week. “Together, these reforms have truly transformed this FBI into the premier modern-day law enforcement organization we need to be.”

When Patel last testified on Capitol Hill in September 2025, he sparred with Democrats as he faced questions about the assassination of conservative activist and influencer Charlie Kirk and his handling of the Jeffrey Epstein files.

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Inflation report to show latest prices as fuel costs surge amid Iran war

Inflation report to show latest prices as fuel costs surge amid Iran war
Inflation report to show latest prices as fuel costs surge amid Iran war
The Ateela 2 Oil Tanker boat navigates the sea on April 28, 2026 on Qeshm Island, Iran in the Strait of Hormuz. (Photo by Asghar Besharati/Getty Images)

(NEW YORK) — An inflation report on Tuesday will provide a fresh gauge of prices as the Iran war ratchets up costs for gasoline, airfares and other expenses.

Economists expect consumer prices to have risen 3.8% in April, when a surge in gasoline costs took hold weeks into the war, which would mark a significant acceleration from 3.3% in the previous month.

As recently as February, inflation stood at 2.4%, clocking in just a tick above the Federal Reserve’s target level of 2%.

The Middle East conflict prompted the Iranian closure of the Strait of Hormuz in March, a maritime trading route that facilitates the transport of about one-fifth of global oil supply. The standoff prompted one of the largest oil shocks ever recorded.

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.

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 price of an average gallon of gas stood at $4.52 as of Monday, AAA data showed – an increase of $1.54 per gallon since the war began on Feb. 28. That amounts to a nearly 52% price jump in about two-and-a-half months.

The surge in fuel prices sent costs surging for gas-dependent transportation, such as airline tickets. In March, airfare costs jumped more than 3% from a month earlier.

Within weeks, the jump in prices could spread to groceries, furniture and just about any other item delivered by diesel-fueled trucks and tankers, some analysts previously told ABC News.

The recent rise in prices has left many consumers feeling glum. In May, consumer sentiment fell to the lowest level ever recorded, according to a monthly survey conducted by the University of Michigan since 1978.

Consumer spending, which accounts for about two-thirds of U.S. economic activity, could weaken if shoppers remain pessimistic. In theory, a slowdown of spending could slow the economy.

By some measures, however, the U.S. economy has proven resilient amid the war.

Hiring slowed in April but remained solid, exceeding economists’ expectations, federal government data last week showed. The unemployment rate held steady at 4.3% in April, a low level by historic standards. Additionally, the economy grew at an annualized rate of 2% in the first quarter of 2026, marking an acceleration from 0.5% growth recorded in the previous quarter.

However, a persistent increase in consumer prices may put pressure on the Fed to raise interest rates as a means of dialing back inflation.

The Fed has opted to hold interest rates steady at three consecutive meetings since the outset of 2026. Before that, the Fed cut interest rates a quarter-point three straight times.

If the Fed moved to raise interest rates, it would hike borrowing costs for many consumer and business loans, risking an economic slowdown.

Markets forecast a roughly 70% chance of interest rates holding steady for the remainder of this year, according to the CME FedWatch Tool.

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Virginia Democrats ask US Supreme Court to override state court’s striking down redistricting plan

Virginia Democrats ask US Supreme Court to override state court’s striking down redistricting plan
Virginia Democrats ask US Supreme Court to override state court’s striking down redistricting plan

(WASHINGTON) — Virginia Democrats are asking the United States Supreme Court to override a decision by the state’s highest court last week that struck down a voter-approved redistricting ballot measure ahead of the midterm elections.

This is a developing story. Please check back for updates.

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