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Economy

Elizabeth Warren Slams ‘Dangerous’ Legislation That Would Weaken Wall Street Reform

A week after a bipartisan group of lawmakers on the House Financial Services Committee overwhelmingly approved a rollback of certain financial reforms contained in the Dodd-Frank Wall Street Reform Act, one of the Senate’s biggest consumer advocates is pushing back.

Massachusetts Sen. Elizabeth Warren (D) came out swinging against the repeal of new rules meant to regulate derivatives, the complex financial instruments that were at “the center of the storm” that caused the financial crisis. The rules shouldn’t be weakened or repealed just because big banks want to see them eliminated, Warren argued Thursday, The Hill reports:

“The big banks won some battles and lost some battles during the financial regulatory debate in 2009 and 2010, but their tune never changed and their lobbying never let up,” she said. “It is dangerous for Congress to amend the derivatives provisions of the Dodd-Frank Act without at the same time taking accompanying steps to strengthen reform and maintain the law’s equilibrium.”

One rule the package of legislation advanced by the House committee would eliminate is a “push out” provision that would limit derivatives trading at banks that receive federal backing. Similar to the Volcker Rule, another provision Wall Street largely opposes, it is aimed at making taxpayer-backed banks safer to avoid crises similar to the one that thrust the United States into a recession and led to a bailout of major banks in 2008.

Warren isn’t alone in her opposition to the rollback. The Obama administration has long opposed the repeal of the derivatives rules, and former Federal Deposit Insurance Commission chair Sheila Bair has said the swaps and derivatives rules need to be strengthened rather than weakened. Whether the rules will face a repeal vote in the Senate isn’t clear: the House passed similar legislation in 2012, only to see it die in the Senate without a vote.

Alyssa

Michelle Obama Encourages African-American Students To Stop Aspiring To Be ‘A Baller Or A Rapper’

Because this is apparently a week that involves a lot of me lowering my head slowly and deliberately to my desk a la Peggy Olson, First Lady Michelle Obama decided to trot out some very old talking points in her commencement address to the 2013 graduating class at Bowie State University:

“Today, instead of walking miles every day to school, they’re sitting on couches for hours, playing video games, watching TV. Instead of dreaming of being a teacher or a lawyer or a business leader, they’re fantasizing about being a baller or a rapper,” Obama continued. “Right now, one in three African American students are dropping out of high school, only one in five African Americans between the ages of 25 and 29 has gotten a college degree.”

But priorities should change, she said, because “getting an education is as important if not more important than it was back when this university was founded.”

While those statistics are absolutely worrisome, I’m pretty sure that the challenges of preparing a competitive resume, getting equal access to standardized test prep, navigating the admissions process, and managing the cost of financial aid are also relevant issues to this conversation. Some of those barriers have been priorities for her husband’s administration. Mrs. Obama acknowledged the odds that a number of the graduates faced to get to and complete their educations Bowie State, though she focused on the cost of tuition and difficult family situations more than other structural issues that might affect students’ abilities to get access to a college education. And she framed their success as a matter of personal will and determination. I can also see why she might have wanted to continue a conversation of long standing within African-American communities given the setting, and as part of her larger, and important historical lesson about the obstacles that black students have faced to get educated in America.

But this particular talking point, which both Mrs. Obama and the President use relatively frequently, could do more to address the structural elements that prop up a culture that values athletics over academics. Personal motivations may be a problem, but the massive public investment in college athletic facilities, the fact that coaches are some states highest-paid public employees, and the allocation of both scholarship money and admissions spots to athletes who are unlikely to complete their academic degrees before entering professional drafts. There’s nothing wrong with wanting to dismantle “the slander that a black child with a book is trying to act white,” but I’m not sure the fantasy career aspirations of black children are the only, or even the main thing, at issue here.

And if we’re going to talk personal motivations, wanting to be “a baller or a rapper” is not a dream that’s solely the property of African-Americans. America has three major televised singing competitions right now, American Idol, The Voice, and X-Factor, all of which promise that it’s possible to rise from anonymity to remarkable fame and a career in music, and the first of which actually became notorious for airing auditions of people who had neither the skills to realistically pursue their aspirations, nor the self-knowledge to recognize the gap between their abilities and their ambitions. Participation is hardly limited to African-American singers by design or choice. There are plenty of white folks who hope to make it big in the manner of Taylor Swift in the same way African-American boys might be dreaming of growing up to become Jay-Z.

The same is more true for sports than Mrs. Obama’s remarks would suggest. In Division I men’s basketball, 1,443, or 27 percent, of the 5,265 players who participated in the 2011-2012 season were white, while 3,158, or 59 percent were African-American. During that same season, in Division I baseball, the figures were most striking. 8,304, or 82 percent of the 10,093 players, were white that season. Clearly, in the college athletic programs that feed into careers in professional sports, there’s a great deal of white interest and participation, even if it isn’t evenly distributed by sport. Miami Heat star LeBron James may be an argument for skipping college in pursuit of a professional athletic career right out of high school, but so is Washington Nationals left-fielder Bryce Harper, who earned a GED and didn’t even finish high school in a classroom setting, all so he could focus on baseball instead, even though the idea that any ordinary person could emulate either of their paths is equally improbable.
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Justice

Texas Judge Forbids Lesbian Woman From Living With Her Partner


Carolyn Compton is in a three year-old relationship with a woman. According to Compton’s partner Page Price, Compton’s ex-husband rarely sees their two children and was also once charged with stalking Compton, a felony, although he eventually plead to a misdemeanor charge of criminal trespassing.

And yet, thanks to a Texas judge, Compton could lose custody of her children because she has the audacity to live with the woman she loves.

According to Price, Judge John Roach, a Republican who presides over a state trial court in McKinney, Texas, placed a so-called “morality clause” in Compton’s divorce papers. This clause forbids Compton having a person that she is not related to “by blood or marriage” at her home past 9pm when her children are present. Since Texas will not allow Compton to marry her partner, this means that she effectively cannot live with her partner so long as she retains custody over her children. Invoking the “morality clause,” Judge Roach gave Price 30 days to move out of Compton’s home.

Compton can appeal Price’s decision, but her appeal will be heard by the notoriously conservative Texas court system. Ultimately, the question of whether Compton’s relationship with Price is entitled to the same dignity accorded to any other loving couple could rest with the United States Supreme Court.

Health

Too Often, Teen Mothers Receive Shame Instead Of Support

(Credit: Pacific Standard Magazine)

This week, news broke that a Michigan school district is barring two teens from displaying their pregnant bellies in their school yearbook. The school district’s superintendent explained that depicting images of teen pregnancy in the yearbook goes against the school’s mission of “promoting abstinence.” One of the pregnant teens said she “went to the bathroom and cried” upon hearing the news.

Aside from the ironic fact that teens who receive abstinence-only education are actually more likely to become pregnant than the students who receive accurate sexual health information about prevention methods, the situation in Michigan also illustrates the pervasive negativity that Americans associate with teenage pregnancies. That attitude ultimately creates a environment that punishes, stigmatizes, and shames young mothers — many of whom are subject to much larger structural issues that are out of their control, like the type of sex education they received in school or the level of poverty they were born into.

Unfortunately, the situation in Michigan is hardly the only example of this dynamic in play. Here are five other instances of teen moms being shamed instead of supported:

1. A North Carolina high schooler’s photo won’t appear in her yearbook because she posed with her newborn son. One teen mom in North Carolina can relate all too well to the pregnant students in Michigan. After posing for a photo with her baby son, she was told that the picture wouldn’t be allowed to appear in the yearbook this year. The school claimed that the image would “promote teen pregnancy” and told the student she had two days to submit a different photo without her son. She declined, saying, “If he wasn’t going to be in it with me, I didn’t want be in it at all.”

2. One Louisiana high school banned pregnant teens from attending classes on campus altogether. Last year, a charter school in Louisiana received significant backlash for its policy forbidding pregnant students from remaining on campus. According to the school handbook, pregnant students were required to either switch to another school or begin a home school program — and if the school “suspected” a girl of being pregnant, administrators could force her to take a pregnancy test to find out for sure. After the ACLU stepped in to file a formal discrimination complaint, the Louisiana Department of Education ordered the school to drop its policy.

3. A celebrity-studded national campaign tells teens that being a mother is incompatible with being successful. Public service campaigns that stigmatize young parents are all too common. Teens are often bombarded with negative messages intended to dissuade them from having a baby at a young age — but instead of focusing on effective information about tools to prevent pregnancy, like information about where to access affordable birth control or other family planning support, these ads simply focus on how teen mothers’ lives are ruined. Many of them also have the added effect of dismissing parenthood altogether. A recent campaign from the Candie’s Foundation depicts celebrity’s faces alongside these messages, including Carly Rae Jepson proclaiming that being a mother prevents women from achieving great things:

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Security

GOP Sources Altered Benghazi E-Mails To Suggest A Cover-Up, Reporter Confirms

Since September, Republicans have claimed the Obama administration covered up the truth about the attack on the American consulate in Benghazi, Libya by altering the talking points Susan Rice used on the Sunday morning talk shows. To bolster the story, Republicans misquoted or significantly embellished the emails officials used to draft Rice’s remarks, the CBS Evening News reported Thursday.

CBS News’ Major Garrett confirmed that it was a GOP source who leaked the altered emails.

The miscast quotes affect at least two emails that include a State Department spokesperson and a White House deputy adviser — the two parties GOP lawmakers insist were trying to engage a cover-up on behalf of the Obama administration to protect the president’s chances of re-election.

A leaked email adds new language to State Department spokesperson Victoria Nuland’s email, including a specific reference to al-Qaeda:

“The penultimate point is a paragraph talking about all the previous warnings provided by the Agency (CIA) about al-Qaeda’s presence and activities of al-Qaeda.

The actual email read:

“The penultimate point could be abused by members to beat the State Department for not paying attention to Agency warnings.

A leaked email written by deputy national security adviser Ben Rhodes suggests that he asked for the final draft to remove references to warnings about specific attacks, a demand made by the State Department:

We must make sure that the talking points reflect all agency equities, including those of the State Department, and we don’t want to undermine the FBI investigation.”

But the actual email did not mention the State Department:

We need to resolve this in a way that respects all of the relevant equities, particularly the investigation.”

Since the congressional hearings last week, the White House on Wednesday released a hundred pages of emails from after the consulate attack. The full version undermines already-thin accusations that this is a White House scandal.

Security

Lawmakers Urge Obama To Bypass Congress To Confront Sexual Assault In The Military

(Credit: AP)

The military’s sexual assault crisis has been in the headlines consistently for the past two weeks, leading two members of Congress to call on President Obama to take executive action and fix it.

Sen. John Tester (D-MT) and Rep. Chellie Pingree (D-ME) introduced the Ruth Moore Act of 2013 earlier this year to help the victims of sexual assault receive benefits once they leave the military. At present, the burden of proof for victims of rape and sexual assault to qualify for disability benefits for conditions related to their trauma, including treatment of post-traumatic stress disorder, is shockingly high, leaving many men and women unable to receive the care they need. A scheduled hearing on the bill was meant to take place on Wednesday, but has instead been delayed until June 3.

Rather than waiting for the Ruth Moore Act to pass, the bill’s sponsors sent Obama a letter on Thursday calling on him to use his authority as president to act now:

We commend your willingness to work with Congress to address the prevalence of sexual assault in the military. However, given the increasing rate of these assaults and the dramatic implications they are having on our service members, veterans, and their families, we strongly urge you to take further action to confront this crisis. In particular, you have the ability to provide justice for thousands of survivors of service-related sexual trauma by calling for more fairness in the Department of Veterans Affairs (VA) disability claims process, and increasing their ability to access the benefits they desperately need. [...]

Our legislation continues to garner support in Congress and has been endorsed by every major veterans’ service organization. Legislation, however, is not necessary to keep faith with these veterans. In 2010, the VA relaxed evidentiary standards to make it easier for combat veterans suffering from PTSD to get the disability benefits they need. It is past time the VA make a similar regulatory change for MST survivors. And you can direct them to do so.

Sexual assault and rape culture in the military has reached a tipping point in the last two weeks, with multiple stories about officials in positions to prevent assaults being charged or investigated for sexual assault themselves. “We’re losing the confidence of the women who serve that we can solve this problem,” Chairman of the Joint Chiefs of Staff Gen. Martin Dempsey said on Thursday. “That’s a crisis.”
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Immigration

Anti-Immigrant Leader Trashes Rubio With Homophobic Slur

(Credit: AP)

A top anti-immigration advocate referred to Sen. Marco Rubio (R-FL) using a homophobic slur during an appearance on the Laura Ingraham radio show on Thursday.

Mark Krikorian, the Executive Director of the Center for Immigration Studies, argued that Rubio is critical to building Republican support for reform, but is either misleading lawmakers about the bill or is unaware of the provisions included in the measure.

“Without Rubio, there is no bill, I mean, it just can’t happen,” Krikorian said, “because Rubio’s job basically was to be the beard for this bill.” The phrase “beard” became popularized in the 1960s to describe a woman helping a man hide his homosexuality.

The Center for Immigration Studies was established by John Tanton, a strict a nativist who once wrote a paper titled “The Case for Passive Eugenics” and has openly professed his preference for white people. CIS has produced reports with racist undertones and Krikorian himself has jokingly suggested that immigrants are responsible for the subprime mortgage meltdown.

In 2007, he accepted an invitation to speak at the Michigan State University chapter of Young Americans for Freedom, a group that had posted “Gays Spread AIDS” fliers across campus.

Justice

Is The ‘James Bond’ Gun Bill A Silver Bullet Against Gun Violence?

You may start seeing more people carrying James Bond’s gun around — by law. A new proposed federal law would require that all new guns, and eventually all guns for sale, would be required to have “smart” identification technology that only allows specially authorized users to fire it, something the silver screen saw recently in Skyfall. The law is intended to crack down on gun accidents, thefts, and suicides, but its critics — including a major gun violence prevention group — worry that it might make the problem worse.

Introduced by Rep. John Tierney (D-MA), the Personalized Handgun Safety Act of 2013 would require that all guns manufactured for sale or put up for sale, would have to have some kind of “personalized” technology that limited the ability to fire the gun to its owner and any individuals authorized. Since this technology is not widespread now, these requirements would kick in within two years for manufacturers and three years for sellers. Affected sellers include both federally licensed retailers and private sellers.

The bill is technologically feasible. Several possible ways of building “smart” guns include firearms that only activate when you press a special ring into it, guns that won’t work until you enter a key code, guns that only fire if they detect a specific radio signal, and guns that recognize biometric info like fingerprints. Some smart guns are already available abroad, including one Irish design that automatically disables guns when they’re brought into properly equipped schools.

There’s some reason to believe these measures could be effective in reducing gun violence. Roughly ten to fifteen percent of crime guns are acquired by theft; an average of 232,400 guns are stolen per year. Presumably, a smart gun couldn’t be used by a thief.

So long as parents don’t give their kids biometric “permission” or leave their gun key lying around, then kids also wouldn’t be able to fire the gun. Adam Lanza couldn’t have brought his mother’s guns to Newtown absent her say-so were they smart guns. Some of the 900 kids who died in gun accidents or suicides last year may not have lost their lives.

“Even if smart guns disarmed only our dumbest, laziest criminals and other unauthorized borrowers like kids,” wrote Dave Guston and Ed Finn, two professors at Arizona State University, “the savings in lives could be tremendous.”
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Climate Progress

Industry Groups Urge Supreme Court To Ban EPA From Regulating CO2

(Credit: Philippe Lissac / GODONG)

Conservative states, business groups, fossil fuel companies, and politicians who deny the science of climate change are petitioning the Supreme Court to reverse Environmental Protection Agency (EPA) regulations on greenhouse gases and to weaken the Clean Air Act. This would involve the Court either limiting or reversing its own 2007 decision, Massachusetts v. EPA, which found that the EPA is required to regulate carbon pollution as pollution.

Reuters reported that the Court’s decision of whether or not to take up the petitioners’ case will have a significant impact on future efforts to reduce carbon emissions. The appeals to the Supreme Court follow the DC Circuit Court of Appeals’ refusal to reconsider the matter. The Court is expected to decide whether to hear the petitions in October.

The nine petitions, filed over the last few months, seek review of EPA regulations. Petitioners include: states with fossil fuel-friendly governors like Texas, Alaska, and Virginia; industry groups such as the Chamber of Commerce, the American Petroleum Institute, and the National Association of Manufacturers; as well as fossil fuel companies like Peabody Energy (the world’s largest private-sector coal company). The petition led by Texas includes as fellow petitioners Gov.Rick Perry (R), Virginia Attorney General Ken Cuccinelli (R), and Reps. Marsha Blackburn (R-TN), and Michelle Bachmann (R-MN), who deny the reality of climate science.

Since the Court ruled that CO2 is a pollutant, the EPA found that it was a threat to public health through an endangerment finding:

“Pursuant to CAA section 202(a), the Administrator finds that greenhouse gases in the atmosphere may reasonably be anticipated both to endanger public health and to endanger public welfare.”

In August of 2012, EPA implemented new mileage standards in order to regulate vehicles, and is expected to do the same with stationary sources — primarily power plants. These standards are already reaping benefits for drivers and manufacturers through increased efficiency, lower emissions, and wider inventory selection. Reducing carbon pollution emitted by power plants would slow the dangerous acceleration of climate change, improve air quality, and would be a net economic positive by avoiding “negative health and environmental effects.”

The wide range of petitions present an unusual number of options for the Supreme Court to rein in or overturn Massachusetts v. EPA (there were 5 petitions challenging the Affordable Care Act in 2011). The Court is more likely to take up one of the petitions on narrower grounds, as most experts see broad action as unlikely.

Alyssa

The Number Of Women In Top-Grossing Movies Hits Five-Year Low. What Are Women For In Hollywood?

The Annenberg School for Communication & Journalism’s annual survey of how women are represented in the 100 top-grossing movies from the previous year is out, and much has been made of the study’s finding that the percentage of female characters has declined to a five-year low, from 29.9 percent in 2007 to 28.4 percent in 2012. But it’s not just notable that the number of female characters with speaking parts has fallen to a low—after all, there were better years in between 2007 and 2012. The survey says a lot about what kinds of women successful movies include, and what those movies think women are for. My colleague Adam Peck put together a graphic representation of some of the most revealing statistics in the study:


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Health

Americans Who Battle Cancer Are Twice As Likely To Go Bankrupt, Even If They Have Health Insurance

Cancer patients are much more likely to go bankrupt than Americans who aren’t faced with a cancer diagnosis, a new study finds. Even the Americans who have access to health insurance aren’t necessarily safe from bankruptcy, since the high cost of treating cancer can still put an untenable strain their finances.

A team of researchers in Washington state collected data from nearly 400,000 adults, evenly split between those who had been treated for cancer and those who were cancer-free. After checking to see which of those adults had filed for bankruptcy between 1995 and 2009, the researchers found that cancer patients were 2.5 times as likely to go bankrupt in that period.

Although the study didn’t specifically look at insurance coverage, previous research has demonstrated that the Americans who cite major health issues as the reason they filed for bankruptcy are actually often insured. One 2006 study found that more than 60 percent of bankruptcies in the United States are due to high medical bills, and in those cases, three-quarters of those Americans had insurance when they got sick. NBC News interviewed one cancer patient who found herself in this situation, even though she was employed and insured when she first got her diagnosis:

That rings true for Janet Literski, 57, who had purchased health insurance as an independent contractor working in sales. When she was diagnosed with non-Hodgkin’s lymphoma in 2008 Literski discovered her insurance covered only part of her surgical costs and none of her diagnostic tests. Then there were co-payments and deductibles. By the time she was diagnosed with pancreatic cancer two years later, she was about $150,000 in medical debt.

In 2011, no longer able to work, Literski and her disabled husband filed for bankruptcy. “It was a gut wrenching decision because you feel like a personal failure, and that makes me angry because I had tried to do everything right,” Literski says. “I had health insurance, I was working.”

Literski is now covered by Medicaid and receives disability payments and though she hasn’t been told she’s in remission, she says she is “healthy enough.”

[The study's lead author, Dr. Scott Ramsey,] says cancer centers need to do a better job of assessing each patient’s financial status, offering credit counseling, and managing patient care.

Even bigger disparities emerged when the researchers broke down the cancer patients in their study by different demographics. The younger groups were up to 10 times more likely to go broke than the older patients, and non-white women were the most likely to run out of money.The cancer that is associated with the highest risk of bankruptcy is thyroid cancer — likely because that disease mostly affects younger women. On the other hand, older men with prostate cancer are the least likely to reach financial rock bottom.

Ramsey and his researchers first presented their research in 2011, and their final findings were published in the Health Affairs journal this week. The timing of the study’s release coincides with some recent pressure to help lower the cost of cancer drugs. Last month, a group of over 100 doctors criticized Big Pharma companies for making “life-saving” cancer drugs too expensive for Americans to afford. The doctors asserted that the “unsustainable drug prices” were “causing harm to patients,” and urged reforms in this area to ensure that cancer patients don’t have to go without the treatment they need.

Cancer patients have also been recently caught up in the budget battles resulting from sequestration. At the end of April, cancer clinics blasted Congress for taking legislative action to restore the sequester cuts that were causing airport delays rather than working to address the cuts that are undermining Americans’ chemotherapy treatment. As a result of the automatic budget cuts, some Americans are being forced to delay their chemotherapy, and some cancer clinics may even be forced to close their doors.

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Climate Progress

Worsening A Warming-Fueled Wildfire Season, Sequestration Threatens Firefighting Efforts

Due to sequestration, the federal government will be at least $115 million short of normal wildfire fighting capacity during this year’s wildfire season. This is particularly problematic as large portions of the U.S. face a serious drought and extremely dry conditions. As the Washington Post reported, Agriculture Secretary Vilsack said “I hope we can get through this fire season without any fatalities.”

A new report from the House Appropriation committee Democrats found that the Forest service “will have 500 fewer firefighters, 50-70 fewer fire engines, and two fewer aircraft because of sequestration.” Some of the equipment it does still have is outdated — such as the 50-years-old-on-average tanker planes that have crashed multiple times in the last decade, killing 14 people.

A Fox News radio AM talk show expressed incredulity that President Obama and Agriculture Secretary Vilsack “could not find $115 million of fat in the budget so they cut firefighters.” One of the more harmful aspects of sequestration is that the cuts take place “across-the-board” and do not permit the same flexibility in moving funds around within an agency.

Because last year’s wildfire season was so severe, the USDA Forest Service faced a $400 million shortfall for active firefighting and had to borrow money from fire prevention programs to cover the costs. These programs included paying for brush removal from public lands and protecting against invasive plants, disease, insect infestations, and fires. Eventually Congress reimbursed the Forest Service for the shortfall via the 2013 Continuing Resolution but the delays hurt prevention efforts. Last year’s fire season consisted of 67,700 fires burned 9 million acres.

This year, as of May 3, there have been 13,115 wildfires, burning 153,000 acres. Compounding the restraints posed by the inflexible sequester, agencies foresee a $700 million deficit in direct firefighting activities, so similar programs will be de-funded (such as a hazardous-fuels-reduction program to remove long-burning combustible materials from the path of fires).

Congress calculates wildfire suppression funds by averaging the cost over the last ten years. As climate change worsens drought year after year, this calculation becomes deficient. The wildfire season used to range between June and September, but has now expanded to include May and October.

The Western U.S. faces low mountain snowpack, and the most recent U.S. Seasonal Drought Monitor Outlook finds that “drought is forecast to either develop or persist across the western contiguous U.S. as this region enters its dry season.”

Dry conditions in nearly half the country make hampered fire management budgets and sequestration cuts even more dangerous for residents and will lead to even more shortfalls this season. A recent report found that climate change will double the area burned by wildfires by 2050.

Drought and wildfires, in addition to harming people and property, also have dramatic impacts on insects like monarch butterflies, as well as mammals, birds, reptiles, and nearly every plant in the region.

Local communities are trying to face climate adaptation issues alongside the federal government. Texas is preparing for record drought by creating a “rainy day” infrastructure water fund, though none of the legislators acknowledge that climate change is a primary cause of increasing droughts.

A recent report from the General Accounting Office found that the federal government needs to do a better job helping local governments adapt to climate change and integrate climate impacts into infrastructure planning. The report identified roads, bridges, wastewater systems, and federal facilities as particularly vulnerable. Sequestration makes it nearly impossible for the federal government to help local communities adapt to and prepare for climate change-fueled extreme weather and wildfires.

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