Costco adds membership scanners upon entry to crack down on customers sharing cards
(NEW YORK) — When customers walk in to shop at Costco Wholesale, they flash a membership card to an employee who typically gives a smile and a nod before they can glide their XL cart into the big box retailer. But now, the warehouse store is cracking down on its entry parameters to avoid non-members from slipping inside under a false pretense.
The company has caught on to friends utilizing someone else’s membership card to access the big box store, so to combat the issue, its adding a new system upon arrival.
“Over the coming months, membership scanning devices will be used at the entrance door of your local warehouse. Once deployed, prior to entering, all members must scan their physical or digital membership card by placing the barcode or QR Code against the scanner,” Costco said in a statement online. “Guests must also be accompanied by a valid member for entry.”
The warehouse retailer said an attendant will be at the door to assist any customers with questions or concerns.
“If your membership is inactive, expired, or you would like to sign up for a new membership, the attendant will ask that you stop by the membership counter prior to entering the warehouse to shop,” the statement continued. “Additionally, if your membership card does not have a photo, please be prepared to show your valid photo ID.”
Members without a photo on their card can also go to the membership counter and get their photo taken to add to the card.
(NEW YORK) — A new bill that would allow some undocumented immigrants to receive loans to buy homes is sparking debate as it passes through the California Legislature.
Assembly Bill 1840 would make it clear that a person who applies for a loan under the California Dream for All Program cannot be disqualified solely because of their immigration status. It passed the state Senate with a 25-14 vote.
The program is run by California Housing Finance Agency, which generates revenue “through mortgage loans, not taxpayer dollars,” according to the agency’s website.
Their program provides a shared appreciation loan — which typically means that first-time homebuyers do not pay interest. Instead, they only have to pay back the original loan amount, plus 20% of any home value appreciation. The loan covers 20% of the purchase price or up to $150,000 to cover a down payment or closing costs.
The loan must be paired with a 30-year fixed interest rate first mortgage from the California Housing Finance Agency and the recipient does not have to make payments on the share appreciation loan until the first mortgage is paid off.
In a general statement on the program’s mission, Gov. Gavin Newsom stated: “As part of the state’s comprehensive efforts to improve affordability, build generational wealth and unlock access to housing, Dream For All is paving the way home for thousands of Californians. This program is more than just financial assistance – it’s about providing a pathway for individuals to achieve their California dream.”
It is not clear if Newsom intends to sign the bill. A two-thirds vote in each chamber of the legislature would be needed to override a veto — which could be achieved with the votes in favor of the bill thus far.
If the new bill is passed or signed into law, undocumented borrowers would be able to apply for the housing loan. However, they would be required to have a valid Social Security number or Individual Taxpayer Identification Number in addition to meeting existing legal residency and documentation requirements.
This language would allow, for example, people who pay taxes but are not legal citizens, such as recipients of the Deferred Action for Childhood Arrivals policy, known as DACA, to apply for the loan.
Supporters say the bill is intended to allow all those who pay taxes in the state to be able to qualify for the assistance.
“Homeownership is one of the largest contributors to building wealth for low and middle-income families,” said Cynthia Gomez, a deputy director at The Coalition for Humane Immigrant Rights in an April hearing on the bill. “However, it’s also well understood that there are many barriers to access for homeownership, in particular for communities of color. California is solution-orientated, and we have implemented various policies that have made homeownership a reality for Californians.”
Critics argue that the money should not be geared toward people who are undocumented and that noncitizens should not be eligible for state programs.
“I just can’t get behind using our limited dollars for people who continue, who are in this country undocumented when we have very limited funds,” said state Rep. Joe Patterson during a hearing on the bill in April.
The Trump campaign told Politico that it believed the bill to be “fundamentally unfair but typical Democrat policy.”
The Senate Appropriations Committee said in a mid-August meeting that the cost pressures on the program, if it were to undergo an expansion, are “unknown,” but the California Housing Finance Agency (CalHFA) indicated “that any costs to update program regulations to prohibit application disqualification based on immigration status would be minor and absorbable,” according to filings in the legislature on the bill.
The debate comes as immigration has continuously ranked as a top issue for 2024 voters, according to Gallup.
California has the largest undocumented population in the country, with an estimated population of 1.85 million undocumented immigrants in 2021, according to the Pew Research Center.
At the same time, California is dealing with a housing crisis, with a growing homeless population and increasingly high costs for housing.
California mid-tier homes are twice as expensive as the typical U.S. home — selling at more than $700,000, according to California’s Legislative Analyst’s Office, and 28% of all homeless people in the U.S. live in California, the point-in-time report from the U.S. Department of Housing and Urban Development recorded.
(NEW YORK) — Borrowers have waited years for a sign of relief from high interest rates for everything from credit card loans to mortgages. The wait may come to an end this week.
Investors widely expect the Federal Reserve to cut interest rates at a meeting on Wednesday. The move would dial back the central bank’s benchmark rate from a 23-year high, reversing some of the rate hikes initiated three years ago in an effort to fight inflation.
Questions, however, remain about the size of the rate cut, what it means for borrowers and how it may impact the 2024 presidential race.
Experts spoke to ABC News about what to know ahead of the potential interest rate cut.
Why is the Fed expected to cut interest rates?
In 2021, the Fed began aggressively raising interest rates in an effort to bring inflation under control. The policy has largely succeeded. Inflation has slowed dramatically from a peak of about 9% in 2022, though it remains slightly higher than the Fed’s target of 2%.
Meanwhile, the job market has slowed. A weaker-than-expected jobs report in each of the last two months has stoked concern among some economists. The unemployment rate has ticked up this year from 3.7% to 4.2%.
Those trends have shifted the Fed’s focus away from controlling inflation and toward ensuring a healthy job market.
In theory, lower interest rates help stimulate economic activity and boost employment; higher interest rates slow economic performance and ease inflation.
“The Fed has been very much guided by data,” Anastassia Fedyk, a professor of finance at Haas Business School at the University of California Berkeley, told ABC News. “ Inflation numbers in the last few months have started looking good, and things are not looking so hot in terms of the jobs reports.”
What will the size of the rate cut be?
The chances of an interest rate cut at the Fed’s meeting next week are all but certain, according to the CME FedWatch Tool, a measure of market sentiment.
Market observers are divided nearly down the middle over whether the Fed will impose its typical cut of a quarter of a percentage point, or opt for a larger half-point cut. The tool estimates the probability of a quarter-point cut at 51% and the odds of a half-point cut at 49%.
“There is that much uncertainty because it seems not all Fed officials are of the same opinion,” Gregory Daco, chief economist at accounting firm EY, told ABC News.
Some Fed policymakers appear to prefer a gradual approach to rate cuts in light of easing inflation and a resilient, albeit weakened, labor market, Daco said. By contrast, others seem to favor a large initial cut that would help avert a more severe job market slowdown.
What would a rate cut mean for credit card fees, mortgage rates?
An interest rate cut would mark a major milestone as the Fed shifts toward a lowering of rates and an easing of costs for borrowers, experts said. Still, they added, the initial rate cut would not substantially lessen loan payments.
“In the grand scheme of things, it’s peanuts,” Daco said.
Nevertheless, some loan relief has already emerged in anticipation of a gradual lowering of interest rates over the coming months.
Mortgage rates fell last week to their lowest level since April 2023, Freddie Mac data showed. The 10-year treasury yield, which helps set the level of many consumer loans, has plummeted nearly a percentage point since July.
“This is a sign of a trend that’s going to start, but it’s going to take a lot longer and be milder than an immediate transition,” Fedyk said.
What would a rate cut mean for the November election?
Typically, lower interest rates make borrowing less expensive for businesses and consumers, propelling companies to invest in new projects and everyday people to stretch for bigger purchases. That all should help propel economic growth and buoy consumer optimism.
In turn, an economic surge could benefit the incumbent party, dispelling concern about a recession and improving the livelihoods of everyday people, some analysts previously told ABC News.
However, the benefits of a forthcoming rate cut could prove more limited, since rate moves take hold after a period of delay that can last months, analysts said.
The most recent Democratic presidential candidate who failed to win reelection, Jimmy Carter, lost his bid amid a historic series of rate hikes at the Fed.
A rate cut would deviate from the policy approach taken by the Fed prior to many recent presidential elections, a Reuters analysis found. Policy rates were left unchanged for six to 12 months before the 2020, 2016, 2012 and 2000 U.S. presidential elections, according to Reuters.
To be sure, the Fed says it bases its decisions on economic conditions and operates as an independent government body.
When asked about the 2024 election at a press conference in Washington, D.C., in December, Fed Chair Jerome Powell said, “We don’t think about politics.”
(WASHINGTON) — On the road to the 2024 presidential election, Vice President Kamala Harris and former President Donald Trump’s views on electric vehicles (EVs) have offered two different visions of America’s automotive future.
Harris has been vocally supportive of the administration’s push to expand access and manufacturing of EVs in the U.S., while Trump has pledged to undo those policies.
Earlier this week, however, Trump appeared to soften his staunch anti-EV views when he spoke to Tesla CEO Elon Musk on X.
“You do make a great product,” Trump said to Musk, referring to Tesla vehicles. “That doesn’t mean everybody should have an electric car, but these are minor details … your product is incredible.”
Before his conversation with Musk, the former president had maintained that electric vehicle production and sustainable energy sources are bad for the economy. He has vowed on “day one” to repeal the Biden-Harris administration’s sustainable energy policies in favor of domestic oil production.
“I will end the electric-vehicle mandate on day one, thereby saving the U.S. auto industry from complete obliteration,” Trump told the audience at the Republican National Convention in July.
Biden-Harris pro-EV policies
While there is no federal electric vehicle mandate, the Biden-Harris administration has issued regulations calling on automakers to reduce emissions produced by their fleets, including by producing more electric and hybrid vehicles.
The administration’s 2022 Inflation Reduction Act – which Harris cast the tie-breaking vote to pass in Congress – marks the largest climate investment in United States history.
The legislation aims to reduce U.S. carbon emissions by 40% by 2030 and channels $370 billion into wind, solar, battery and electric vehicle production over the next 10 years.
Through the Inflation Reduction Act, candidate Harris has advocated for substantial investments in domestic electric vehicle car manufacturing, including funding for charging stations, and offering consumer incentives to buy EVs.
In May, Harris traveled to Detroit, Michigan, where she announced $100 million for small- and medium-sized auto manufacturers to upgrade their facilities for EV production.
“This investment will help to keep our auto supply chains here in America,” Harris said then, “which strengthens America’s economy overall and will keep those jobs here in Detroit.”
If elected, Harris is expected to continue advocating for eco-friendly fuel and emissions standards, increase funding for research and development for EV technology, and focus on leveraging EV industry growth to create more jobs.
An ABC News request to the Harris campaign for comment about their EV plans was not immediately returned.
EV sales impact on economy, climate
More Americans are starting to embrace EVs. Sales of electric cars and trucks last year totaled 1.4 million in 2023, up from 1 million in 2022, U.S. Energy Secretary Jennifer Granholm announced in January.
“The progress that’s been made is phenomenal,” Albert Gore III, executive director of the nonprofit coalition Zero Emission Transportation Association, told ABC News. “The United States has been a leader in electric vehicle manufacturing and also has really been a leader in a lot of good policymaking with regard to investment in every part of the EV and battery supply chain.”
Gore also noted that electric vehicles can have a significant impact on the economy, saying, “There’s a huge amount of opportunity.”
The industrial Midwest, Southwest and Southeast already have seen investment and job opportunities in the production of minerals and battery components for EVs. Georgia, Nevada, Texas, Ohio and Kansas have grown as domestic hubs for battery manufacturing, while Georgia, Tennessee, Ohio and Arizona have risen as leaders in EV manufacturing.
“So a lot of really exciting economic opportunity in these places, and oftentimes it’s multiple parts of the supply chain,” Gore added.
Last month, the Biden administration awarded nearly $2 billion in grants to General Motors, Stellantis and other automakers to expand electric vehicle manufacturing in eight states, including key election swing states Michigan, Pennsylvania and Georgia.
“It’s really important that we create a transportation system where our cars are made by union workers with good jobs, which we’re starting to do courtesy of the Biden-Harris Inflation Reduction Act,” Craig Segall, former deputy executive officer of the California Air Resources Board and current vice president of Evergreen Action, a nonprofit climate change advocacy group, told ABC News.
“We must stabilize the climate and America should lead that effort,” Segall added.
Segall believes a Harris-Walz White House promises a continuation of the Biden administration’s push for EV manufacturing, and a chance to further those goals.
“When I think about what we could have at the end of her first term, I think we’re talking about much clearer skies and much healthier communities,” Segall said.
Because they have zero emissions, electric vehicles typically have a smaller carbon footprint than gasoline cars, even when accounting for the electricity used for charging, according to the Environmental Protection Agency.
Obstacles to EV sales in the U.S.
Despite the push by carmakers and government officials, the EV market in the U.S. is still small compared to sales of gas-powered vehicles. Of the roughly 286 million cars on the road in 2023, just 9.3% were electric vehicles, according to Experian Automotive’s Market Trends report.
“The EV market is currently going through a bit of a rough patch,” Jessica Caldwell, head of insights at Edmunds, told ABC News.
Caldwell explained that consumers’ hesitancy to buy electric vehicles largely surrounds the charging infrastructure, range, prices, and battery longevity.
“In order for its buyer base to evolve from early adopters to mainstream consumers, EVs will likely rely on continued government support to hit volume sales targets across all brands,” Caldwell said. “Even with the enthusiastic backing of a fresh presidential administration, enacting such a dramatic shift in the vehicle market is a massive undertaking and the politically charged rhetoric surrounding EVs will likely place extra pressure on any new policy decisions.”
In order to combat consumer hesitancy, electric vehicles need to be offered at every price range, according to Alan Jenn, an assistant professor at the UC Davis Institute of Transportation Studies.
“In order to see EVs get even more mainstream than they are now, we want to see a larger release of vehicles in segments that are more affordable,” Jenn told ABC News.
The average transaction price for electric cars in June 2024 was $56,371 versus gas-powered vehicles at $48,644, according to Kelley Blue Book.
Segall believes a Harris presidency could bring federal investments and further tax credits to lower the costs of EVs.
Currently, the government offers tax credits up to $7,500 for eligible new electric vehicles and up to $4,000 for eligible used electric vehicles, according to the Department of Energy.
“They’re really well placed to stop paying for gas forever right now, and that’s only going to be a better story,” Segall said.