Elon Musk says Trump’s economic plans could cause ‘temporary hardship’
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(WASHINGTON, D.C.) — Elon Musk, the world’s richest person, has vaulted to the forefront of the presidential campaign as a top donor and impassioned speaker in support of former President Donald Trump.
Still, Musk has said in recent days that the candidate’s economic plans could cause financial pain, at least in the short term.
Among those proposals is the potential formation of a new “government efficiency commission” to be led by Musk. The group would scrutinize federal spending and slash programs deemed wasteful.
Speaking on a telephone town hall on Friday, Musk said spending cuts imposed by the commission would “necessarily involve some temporary hardship.” Ultimately, Musk added, the cost-cutting would “ensure long-term prosperity.”
“We have to reduce spending to live within our means,” Musk said.
Offering up another cautionary note, Musk voiced agreement with a post on X on Tuesday that warned of dire economic fallout if Trump wins the election and implements some of his key agenda items.
“If Trump succeeds in forcing through mass deportations, combined with Elon hacking away at the government, firing people and reducing the deficit – there will be an initial severe overreaction in the economy,” an anonymous user posted on X.
“Market will tumble. But when the storm passes and everyone realizes we are on sounder footing, there will be a rapid recovery to a healthier, sustainable economy,” the post added.
In reply, Musk said, “Sounds about right.”
ABC News contacted Musk-owned companies, Tesla and SpaceX, in an effort to reach Musk for comment. He did not immediately respond. America PAC did not immediately respond to a request for comment.
In response to ABC News’ request for comment, the Trump campaign praised Musk, saying he is uniquely equipped to help improve government efficiency.
“As President Trump has said, Elon Musk is a genius, an innovator, and has literally made history by building creative, modern, and efficient systems. Elon Musk has dedicated himself to America’s future by offering to serve with President Trump to ensure our government works more efficiently and uses America’s taxpayer dollars effectively,” Brian Hughes, a senior adviser to the Trump campaign, told ABC News.
“The commission will ultimately be staffed and dedicated to this mission, and President Trump is committed to having Mr. Musk lead this commission to analyze the functionality of our government,” Hughes added.
On the campaign trail, Trump has vowed to slap tariffs of up to 20% on all imported goods and deport millions of undocumented immigrants. Economists widely view those proposals as likely to drive up consumer prices, since companies typically pass along the costs of taxes and wage increases to customers.
Trump has also floated the notion of eliminating the personal income tax for all Americans. The U.S. would pay for the lost tax revenue with far-reaching tariffs, Trump told Joe Rogan last week.
The individual income tax currently accounts for roughly half of the $5 trillion in revenue that the federal government brings in each year. It would be all but impossible to make up for the lost revenue with increased tariffs, experts previously told ABC News.
Last year, the U.S. imported about $3.8 trillion worth of goods, the U.S. Bureau of Economic Analysis found. To generate the same amount of revenue currently brought in by the individual income tax, a tariff would have needed to be set at about 70%, said Alan Auerbach, a law professor at the University of California, Berkeley.
However, a tariff of such magnitude would significantly reduce U.S. trade, slashing the total amount of imported goods and, in turn, reducing tax revenue.
Musk, who leads Tesla and SpaceX, has taken an active role as both a large donor and vocal proponent backing Trump.
Musk donated about $75 million to a pro-Trump Super PAC over a three-month period ending in September, according to disclosures filed to the Federal Election Commission. Musk, who owns X, frequently posts messages in support of Trump on the social media platform, where he boasts more than 202 million followers.
The U.S. national debt currently stands at about $35 trillion. President Joe Biden has added to the national debt over the course of his term in office, just as Trump did.
Vice President Kamala Harris’ economic plans would increase primary deficits by $1.2 trillion over the next 10 years, according to a budget model created by the University of Pennsylvania’s Wharton School of Business. The plans put forward by Trump, meanwhile, would increase primary deficits by $5.8 trillion over that period, the model found.
Speaking on a telephone town hall on Friday, Musk vowed to closely examine the federal budget if appointed head of a potential “government efficiency commission.”
The role means “looking at every line item, every expense, and saying is this necessary at all?” Musk said.
(NEW YORK) — The judge overseeing Donald Trump’s federal election interference case on Friday unsealed the redacted appendix of evidence gathered by special counsel Jack Smith, offering a glimpse of the evidence that could be seen by a jury if the former president’s case goes to trial.
The highly redacted appendix is an attachment to the immunity motion filed earlier this month by Smith that included new details about Trump and his allies’ actions leading up to the Jan. 6 assault on the Capitol.
The majority of the appendix’s 1,889 pages are redacted, and the remaining documents are largely comprised of public materials, including transcripts released by the House select committee on Jan. 6, court transcripts, Trump’s social media posts, excerpts from Vice President Mike Pence’s autobiography, and fraudulent electoral certificates signed by Trump’s “fake electors.”
The patchwork of evidence includes a portion of an interview between a former White House employee and an investigator from the House Jan. 6 committee regarding Trump’s conduct when he learned of the riot at the Capitol.
According to the employee, Trump inquired why he could not watch the entirety of his speech at the Ellipse earlier that day.
“‘Sir, they cut it off because they’re rioting down at the Capitol.’ And he was like, ‘What do you mean?'” the employee said.
The employee told congressional investigators that he set up a television in the Oval Office dining room and brought Trump a Diet Coke while he watched his speech, which was interrupted by coverage of the riot.
“I said, ‘It’s like they’re rioting down there at the Capitol,'” the employee said. “And he was like, ‘Oh really?’ And then he was like, ‘All right, let’s go see.'”
The unsealing of the appendix came a day after the judge in the case, U.S. District Judge Tanya Chutkan, denied Trump’s last-minute request to delay the release of the material until after the presidential election.
Chutkan, in Thursday’s ruling, pushed back on Trump’s argument that the release was politically motivated to influence the 2024 presidential election.
“There is undoubtedly a public interest in courts not inserting themselves into elections, or appearing to do so. But litigation’s incidental effects on politics are not the same as a court’s intentional interference with them,” Chutkan wrote in her order.
“As a result, it is in fact Defendant’s requested relief that risks undermining that public interest: If the court withheld information that the public otherwise had a right to access solely because of the potential political consequences of releasing it, that withholding could itself constitute — or appear to be — election interference,” she wrote.
Trump last year pleaded not guilty to federal charges of undertaking a “criminal scheme” to overturn the results of the 2020 election in order to remain in power.
Smith subsequently charged Trump in a superseding indictment that was adjusted to respect the Supreme Court’s July ruling that Trump is entitled to immunity from criminal prosecution for official acts undertaken as president — a decision that effectively delayed any potential trial until after the November election.
(NEW YORK) — Universities across the country have transformed at the command of anti-diversity, equity and inclusion (DEI) legislation. At the University of Texas-Austin, the legislation led to resource cancellations, office closures, and staff firings — pushing some students to create alternatives to their school’s defunct diversity programs.
Texas Gov. Greg Abbott signed SB 17 into law in 2023, barring public institutions of higher education from having diversity, equity, and inclusion offices, as well as programs, activities, and training conducted by those offices. The law also restricts training or hiring policies based on race, gender identity or sexual orientation.
His office told ABC News in a recent statement that the legislation was intended to ensure people “advance based on talent and merit at public colleges and universities in Texas.”
Abbott’s office criticized universities for using DEI offices to “advance political agendas and exclude conservative viewpoints on college campuses. These efforts adversely affect our students, limit exposure to diverse thought, and destroy our education system,” read the statement from Abbott’s press secretary Andrew Mahaleris.
ABC News spoke to UT Austin students and a terminated faculty member about the compounding impact the loss of diversity programs has had on campus.
The Monarch Program
The long list of potential college life logistics – like how to pay for school, open an independent bank account or get a job – is even longer for undocumented students and those with temporary status.
These students are not eligible for federal student aid, federal work-study, are limited in their access to grants and scholarships and, in some cases, cannot accept paying jobs while in school.
With limited guidance and limited options, Arely, a student at UT Austin who asked to be referenced by only her first name out of privacy concerns, said her status created many unknowns and uncertainties for her future when applying to colleges. As a Deferred Action for Childhood Arrivals (DACA) recipient, Martinez told ABC News she worked hard to be at the top of her high school class so she could get into a good school.
DACA is a U.S. government policy that allows some undocumented immigrants to remain in the United States temporarily and work. Recipients must have entered the United States illegally before their 16th birthday and be younger than 31 years old on June 15, 2012, according to the U.S. Citizens and Immigration Services website.
“It was always kind of told to me, like, your education is going to be the only way you’re going to be able to kind of push forward and build something out for yourself – it’s through your education,” said Arely.
At UT Austin, students like Arely had a place to turn to for answers. Monarch, an on-campus student program for undocumented and temporary status students, hosted workshops on those logistical concerns, mental health resources at little to no cost, career fairs specifically geared toward undocumented students, panel discussions with undocumented grads, and a donor-based scholarship.
“Those are the things that I would help students navigate,” said Alicia Moreno, the former Monarch Student Program Coordinator. “Like working with campus partners to create resources and help students understand what their options were because many students that I heard – before they ran into Monarch – they believed their options were really slim.”
Monarch was a way for the university to ensure students could succeed despite the barriers they face due to their status, Moreno said.
“A lot of my college experience would have definitely been way more different had Monarch not been there,” said Arely. “I can’t imagine in what situation I would have been had I not had that support system.”
Arely, who worked at the center, said the Monarch team also would get requests from faculty and staff asking to hold trainings regarding the challenges undocumented students face.
“A lot of these students had gone their whole college career having access to these resources, and now they were suddenly taken away and ripped out of their hands,” said Arely. “Especially for, like, incoming freshmen who had maybe specifically applied to UT Austin because of this program, and now they’re going to get to the UT campus and they’re going to realize that program that was supposed to support them and acknowledge them is no longer there.”
Moreno was one of about 60 people whose positions were terminated following the closure of DEI offices and related initiatives, according to a joint letter from the Texas NAACP & Texas Conference of American Association of University Professors.
The university initially stated that some programs would be shifted to other divisions or renamed to complement ongoing operations. Monarch, according to students and former staff, was also initially not targeted by SB 17 since it does not specifically refer to any race or ethnicity.
However, university officials later stated that the law changed the scope of some programs, making them broader and creating overlap between existing programs.
“We know these programs and the dedicated staff who run them will continue to have positive impacts on our campus and community,” read the university’s letter referring to the programs that remained.
The terminations came shortly after state Sen. Brandon Creighton, who introduced the legislation, warned universities against simply renaming their DEI programs, threatening to freeze funding.
“I was getting ready to prepare for the next year. My office was just painted. I had just gotten that Exemplary Service Award, and then – boom! – we were all terminated,” Moreno said.
Students say they have been left to pick up the pieces without the dedicated resources to support them. Victoria Uriostegui-Garcia, a member of a student-run group called Rooted, said her organization has become a substitute for the services once provided by Monarch. It is one of several student-run organizations to take on the responsibilities of the now-shuttered offices.
“It falls on students again to provide their own resources, which is a very heavy burden,” said Uriostegui-Garcia. “We’re going to try our best.”
Students lead the charge
Among the centers and programs shut down by UT Austin were Multicultural Engagement Center, the Gender and Sexuality Center, and the Fearless Leadership Institute – a professional development program for African American & Hispanic women.
However, UT Austin is not the only school facing these restrictions. Schools across the state — and in some states across the country — have seen similar mass closures and firings following the implementation of anti-DEI legislation.
At least nine states have implemented legislation restricting DEI in education: Alabama, Florida, Idaho, lowa, North Dakota, South Dakota, Tennessee, Texas and Utah.
Supporters of anti-DEI legislation, like Creighton, have applauded the changes made by SB 17. Creighton argued that it returned the university to “a merit-based operational framework, ensuring that every student, faculty, and staff member is afforded equal opportunities and not silenced by DEI-oriented policies,” he said in a March 2024 statement.
UT Austin states that it remains vigilant in ongoing efforts to ensure the university’s compliance with the state law, defining DEI offices as any office that implements programs or training with reference to race, ethnicity, gender identity, or sexual orientation, “influences hiring or employment practices” with respect to those identities or promotes “differential treatment of or providing special benefits to individuals” on the basis of identity.
I recognize that strong feelings have surrounded SB 17 from the beginning and will shape many Longhorns’ perceptions of these measures,” said university president Jay Hartzell. “It is important that we respect the perspectives and experiences of our fellow Longhorns as the changes we are announcing today take effect. It is also important that this continues to be a welcoming, supportive community for all.”
UT Austin did not respond to ABC News’ requests for further comment.
Alex and Sophia, members of Texas Students for DEI who asked to be referenced by only their first names out of privacy concerns, say the services were targeted for specific groups who have historically faced discrimination or barriers to success, but were open to all students.
Alex noted, for example, that a closet of free clothes located in the gender center was open to all: “If it meant that you got kicked out of the home, or if it meant that you needed clothes for a job — hey, there’s clothes available, no questions asked.”
Alex and Sophia say many students they have spoken to did not know about SB 17 until it passed and they started seeing their centers close on campus.
Student organizations have stepped up to the plate, hoping to foster community in a time when resources backed by the university have shrunk. They say schools across the state have “over-complied” with the law — leading to a chilling effect of classroom curriculum and discussion concerning race, gender and sexual orientation.
“Even now, if you read some of the syllabi for some classes, they’ll have a disclaimer at the end saying no material in this class is pertaining to SB 17 or falls under the guidelines of SB 17,” said Sophia, despite the UT Austin website stating explicitly that academic instruction and research is not to be impacted by the law. “They’re expecting to be censored. They’re expecting the state to want to do things against them, and so they’re, they feel less comfortable talking about these topics openly, which ultimately affects our education.”
She continued, “We are a university, we’re a place of learning, and learning requires people to be open about information in a way that isn’t censored, and when a state tries to censor that, they ultimately harm themselves.”
With SB 17 passed, students are worried the state will continue to embrace other anti-DEI initiatives. They hope to safeguard from further efforts by educating the college community about what DEI is and what it means.
“It isn’t just one university. It’s all of us. And silence isn’t really the way out,” said Alex.
An ABC News graphic shows the expected path of a tropical storm in the Gulf of Mexico on Monday, Sept. 9, 2024. — ABC News
(NEW YORK) — Tropical Storm Francine is churning in the Gulf and is set to strengthen to a hurricane before making landfall in Louisiana.
Francine is forecast to be a Category 1 hurricane with 85 mph winds by Wednesday. Landfall is forecast in western Louisiana on Wednesday afternoon.
A hurricane watch has been issued in Louisiana, from Cameron to Grand Isle.
A storm surge watch is in effect from Texas to the Mississippi-Alabama border.
By Tuesday morning, Francine’s outer bands will bring heavy rain and gusty winds to Texas. The rough weather will last through the day along the coast, including Houston.
By Wednesday morning, conditions will deteriorate rapidly in southwestern Louisiana. Heavy rain and flooding is expected throughout the day.
About 5 to 8 inches of rain, with locally up to 1 foot, is forecast from Louisiana to the western Florida Panhandle through Thursday morning.
