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House GOP Majority Aiming to Soften Financial Overhaul Law

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Paul Volcker (AP Photo/Cliff Owen)

Paul Volcker (AP Photo/Cliff Owen)

MARCY GORDON, AP Business Writer

WASHINGTON (AP) — The House moved Tuesday toward approving a measure aimed at softening legislation responding to the 2008 financial crisis that put banks and Wall Street under the most sweeping rules since the Great Depression.

Amid a veto threat from the White House, the legislation pushed by the newly bulked-up Republican majority came under discussion in the House for the second time in less than a week. This time it’s likely to pass, with a vote expected Wednesday that will advance a key Republican priority.

The bill would alter sections of the 2010 Dodd-Frank financial overhaul. Most notably, the measure would give U.S. banks another two years — until 2019 — to ensure that their holdings of certain complex and risky securities don’t put them afoul of a new banking rule.

On the House floor, Democratic lawmakers objected to the measure being whisked through the House in the first days of the new Congress without the chance for discussion or changes at the level of congressional committees. The Democrats also were blocked late Monday from bringing about a dozen proposed amendments to a vote on the floor.

Republicans insisted that since most of the provisions of the bill already had been voted by the House in the last Congress as separate measures, there has been ample opportunity to consider them.

The bill would revise the so-called Volcker rule, a key part of the financial overhaul law, which would limit banks’ riskiest trading bets. That kind of risk-taking on Wall Street helped trigger the 2008 crisis.

“Just one week after being sworn into office, the House of Representatives is already showing the American people that its priorities are all wrong,” Dennis Kelleher, president of Better Markets, a group that advocates strict financial regulation, said in a statement.

The bill won a 276-146 majority in the House last Wednesday — only the second day of the new Congress — but failed under fast-track rules that required a two-thirds vote. This time it’s likely to pass under rules that require a simple majority.

Republicans in the House have been trying for years to chip away at the Dodd-Frank law, which Congress enacted with mostly Democratic support to tighten regulation with an eye to preventing another crisis. Republicans have denounced the law as an excessive expansion of regulatory authority that’s stifling the competitiveness of the U.S. financial industry.

As passage appeared closer, the Obama White House issued a formal veto threat Monday, saying the bill “would weaken and undermine” the Dodd-Frank law. Referring to the proposed two-year delay for certain securities under the Volcker rule, the White House said in a statement, “taxpayers should not have to wait that long to have limits in place that protect them from risky practices.”

The Federal Reserve in April gave banks until July 2017 to sell off their holdings of so-called collateralized loan obligations, which are mainly backed by commercial loans to higher-risk companies. That came atop a previous one-year extension by the Federal Reserve, to July 2015.

The rule is named for Paul Volcker, a former Fed chairman who was an adviser to President Barack Obama during the financial crisis. Volcker urged a ban on high-risk trading by big banks to diminish the likelihood that taxpayers might have to rescue them, as they did after the crisis, with hundreds of billions of dollars in government aid.

Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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Activism

OPINION: Your Voice and Vote Impact the Quality of Your Health Care

One of the most dangerous developments we’re seeing now? Deep federal cuts are being proposed to Medicaid, the life-saving health insurance program that covers nearly 80 million lower-income individuals nationwide. That is approximately 15 million Californians and about 1 million of the state’s nearly 3 million Black Californians who are at risk of losing their healthcare. 

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Rhonda M. Smith.
Rhonda M. Smith.

By Rhonda M. Smith, Special to California Black Media Partners

Shortly after last year’s election, I hopped into a Lyft and struck up a conversation with the driver. As we talked, the topic inevitably turned to politics. He confidently told me that he didn’t vote — not because he supported Donald Trump, but because he didn’t like Kamala Harris’ résumé. When I asked what exactly he didn’t like, he couldn’t specifically articulate his dislike or point to anything specific. In his words, he “just didn’t like her résumé.”

That moment really hit hard for me. As a Black woman, I’ve lived through enough election cycles to recognize how often uncertainty, misinformation, or political apathy keep people from voting, especially Black voters whose voices are historically left out of the conversation and whose health, economic security, and opportunities are directly impacted by the individual elected to office, and the legislative branches and political parties that push forth their agenda.

That conversation with the Lyft driver reflects a troubling surge in fear-driven politics across our country. We’ve seen White House executive orders gut federal programs meant to help our most vulnerable populations and policies that systematically exclude or harm Black and underserved communities.

One of the most dangerous developments we’re seeing now? Deep federal cuts are being proposed to Medicaid, the life-saving health insurance program that covers nearly 80 million lower-income individuals nationwide. That is approximately 15 million Californians and about 1 million of the state’s nearly 3 million Black Californians who are at risk of losing their healthcare.

Medicaid, called Medi-Cal in California, doesn’t just cover care. It protects individuals and families from medical debt, keeps rural hospitals open, creates jobs, and helps our communities thrive. Simply put; Medicaid is a lifeline for 1 in 5 Black Americans. For many, it’s the only thing standing between them and a medical emergency they can’t afford, especially with the skyrocketing costs of health care. The proposed cuts mean up to 7.2 million Black Americans could lose their healthcare coverage, making it harder for them to receive timely, life-saving care. Cuts to Medicaid would also result in fewer prenatal visits, delayed cancer screenings, unfilled prescriptions, and closures of community clinics. When healthcare is inaccessible or unaffordable, it doesn’t just harm individuals, it weakens entire communities and widens inequities.

The reality is Black Americans already face disproportionately higher rates of poorer health outcomes. Our life expectancy is nearly five years shorter in comparison to White Americans. Black pregnant people are 3.6 times more likely to die during pregnancy or postpartum than their white counterparts.

These policies don’t happen in a vacuum. They are determined by who holds power and who shows up to vote. Showing up amplifies our voices. Taking action and exercising our right to vote is how we express our power.

I urge you to start today. Call your representatives, on both sides of the aisle, and demand they protect Medicaid (Medi-Cal), the Affordable Care Act (Covered CA), and access to food assistance programs, maternal health resources, mental health services, and protect our basic freedoms and human rights. Stay informed, talk to your neighbors and register to vote.

About the Author

Rhonda M. Smith is the Executive Director of the California Black Health Network, a statewide nonprofit dedicated to advancing health equity for all Black Californians.

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Black History

Henry Blair, the Second African American to Obtain a Patent

Being a successful farmer required consistent production. Blair figured out a way to increase his harvest. He did this with two inventions. His first invention was a corn planter. The planter had the same structure as a wheelbarrow, with a box to hold the seed and rakes dragging behind to cover them. This machine allowed farmers to plant their crops more economically.

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A sketch of one of Henry Blair’s inventions, the seed planter. Image courtesy United States Patent and Trademark Office.
A sketch of one of Henry Blair’s inventions, the seed planter. Image courtesy United States Patent and Trademark Office.

By Tamara Shiloh

The debate over whether enslaved African Americans could receive U.S. Government-issued patents was still unfolding when the second African American to hold a patent, Henry Blair, received his first patent in 1834.

The first African American to receive a patent was Thomas Jennings in 1821 for his discovery of a process called dry scouring, also known as dry cleaning.

Blair was born in Glen Ross, Maryland, in 1807. He was an African American farmer who received two patents. Each patent was designed to help increase agricultural productivity.

There is very little information about his life prior to the inventions. It is known that he was a farmer who invented machines to help with planting and harvesting crops. There is no written evidence that he was a slave.

However, it is apparent that he was a businessman.

Being a successful farmer required consistent production. Blair figured out a way to increase his harvest. He did this with two inventions. His first invention was a corn planter. The planter had the same structure as a wheelbarrow, with a box to hold the seed and rakes dragging behind to cover them. This machine allowed farmers to plant their crops more economically.

Blair could not write. As a result of his illiteracy, he signed the patent with an “X”. He received his first patent for the corn planter on Oct. 14, 1834.

Two years later, taking advantage of the boost in the cotton industry, he received his second patent. This time for a cotton planter. This machine worked by splitting the ground with two shovel-like blades that were pulled along by a horse. A wheel-driven cylinder behind the blades placed seeds into the freshly plowed ground. Not only was this another economical and efficient machine. It also helped with controlling weeds and put the seeds in the ground quickly Henry Blair received his second patent on Aug. 31, 1836

During this time, the United States government passed a law that allowed patents to be granted to both free and enslaved men. However, in 1857, this law was contested by a slaveowner. He argued that slaveowners had a right to claim credit for a slave’s inventions. His argument was that since an owner’s slaves were his property, anything that a slave owned was the property of the owner also.

In 1858 the law changed, and patents were no longer given to slaves. However, the law changed again in 1871 after the Civil War. The patent law was revised to permit all American men, regardless of race, the right to patent their inventions.

Blair died in 1860.

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Bo Tefu

Gov. Newsom Highlights Record-Breaking Tourism Revenue, Warns of Economic Threats from Federal Policies

“California dominates as a premier destination for travelers throughout the nation and around the globe,” said Newsom. “With diverse landscapes, top-rate attractions, and welcoming communities, California welcomes millions of visitors every year. We also recognize that our state’s progress is threatened by the economic impacts of this federal administration, and are committed to working to protect jobs and ensure all Californians benefit from a thriving tourism industry.”

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iStock.
iStock.

By Bo Tefu, California Black Media

Last week, Gov. Gavin Newsom, along with the nonprofit organization Visit California, announced that tourism spending in California reached a record $157.3 billion in 2024, reinforcing the state’s status as the top travel destination in the United States.

The Governor made the announcement May 5, referencing Visit California’s 2024 Economic Impact Report, which highlights a 3% increase in tourism revenue over the previous year.

According to the report, California’s tourism sector supported 1.2 million jobs, generated $12.6 billion in state and local tax revenues, and created 24,000 new jobs in 2024.

“California dominates as a premier destination for travelers throughout the nation and around the globe,” said Newsom. “With diverse landscapes, top-rate attractions, and welcoming communities, California welcomes millions of visitors every year. We also recognize that our state’s progress is threatened by the economic impacts of this federal administration, and are committed to working to protect jobs and ensure all Californians benefit from a thriving tourism industry.”

Despite the gains in tourism revenue, Visit California’s revised 2025 forecast points to a 1% decline in total visitation and a 9.2% decrease in international travel. The downturn is attributed to federal economic policy and what officials are calling an impending “Trump Slump,” caused by waning global interest in traveling to the United States.

To offset projected losses, the Governor is encouraging Californians to continue traveling within the state and has launched a new campaign aimed at Canadian travelers.

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