The Excerpt podcast: $118 billion package addressing border, aid for Ukraine and Israel
On today's episode of The Excerpt podcast: The Senate has released a new package addressing the border and foreign aid. Californians face severe flooding. Paste BN Justice Department Correspondent Bart Jansen talks about Supreme Court decorum, ahead of arguments this week surrounding Donald Trump. Pharmaceutical companies navigate new price guardrails. Paste BN Personal Finance Reporter Daniel de Visé explains how many parents continue to support their adult children financially. Taylor Swift makes history at the Grammys.
Hit play on the player below to hear the podcast and follow along with the transcript beneath it. This transcript was automatically generated, and then edited for clarity in its current form. There may be some differences between the audio and the text.
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Taylor Wilson:
Good morning, I'm Taylor Wilson. And today is Monday, February 5th, 2024. This is The Excerpt.
Today, the Senate releases a package to address the border and foreign aid, but what chance does it have at passing? Plus, an early look to Thursday Supreme Court arguments about Donald Trump's ballot eligibility. And we discuss how many parents are supporting their adult children financially.
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The Senate released a $118 billion package yesterday that includes a long awaited bipartisan deal to address migration at the southern border, along with new aid for Ukraine, Israel, and other US allies. Specifically, the bill includes the supplemental aid package requested by President Joe Biden for foreign conflicts. It would appropriate $60 billion for Ukraine, $14 billion for Israel, and 10 $billion for humanitarian aid, including in Gaza. On border issues, it would include around $20 billion to expand the Department of Homeland Security's ability to catch and transport migrants crossing illegally, among other provisions. The legislation would end a practice known as catch and release, where migrants caught crossing the border illegally are released into the United States while they wait for the government to process their asylum application. Instead, they would be detained while their claims are evaluated. It's not clear what chance the legislation has of passing in Congress. Republican House Speaker, Mike Johnson, has told fellow Republicans in the house that the package is dead on arrival. He's called on colleagues to take on the House's hard line border bill, known as H.R. 2, which has received no Democratic support.
Meanwhile, the Congressional Hispanic Caucus has slammed Biden's support for the package, and argued that further reform is needed to provide a safe, legal pathway to citizenship for migrants. You can read more with a link in today's show notes.
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A strong winter storm, fueled by an atmospheric river, slammed Californians yesterday with intense downpours. Hundreds of thousands of people are without power. An AccuWeather meteorologist warned that up to 37 million people, or 94% of the state's population, were at risk for life-threatening floods from the storm. It's the second atmospheric river to pound the state in recent days. It was so strong the National Weather Service issued a rare hurricane force wind warning for the state's central coast, with wind gusts above 90 miles an hour possible. San Francisco officials have issued alerts about flooded and blocked streets. And a state of emergency has been declared in eight Southern California counties as the storm moves south today and tomorrow.
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The Supreme Court will hear arguments Thursday about whether former President Donald Trump should be on the ballot in Colorado. Trump has already confronted judges, disparaged opponents, and more, during recent trials, as he's often campaigned from the courtroom. But don't expect any outbursts this week in front of the high court. I spoke with USA Today Justice Department correspondent, Bart Jansen, for more. Bart, thanks for making the time.
Bart Jansen:
Thanks for having me.
Taylor Wilson:
So, Bart, before we get to Donald Trump, I want to learn a little more about decorum around the Supreme Court. What do the rules say here, and what are some famous incidents that have tested this?
Bart Jansen:
It's a pretty somber chamber where, as folks are ushered in, it's very quiet like a church, the gallery area. People are guided to seats. They're told to remain quiet. There are supposed to be no interruptions. And so, every once in a while, there can be protests inside the Supreme Court Chamber. And because it is so quiet and such a serious atmosphere, it can be a little jarring. In 2015, five people were arrested for protesting a campaign finance decision. They stood, one at a time, and yelled out their messages. As each one was escorted out, then the next person would stand up. And, finally, Chief Justice Roberts scolded the protesters, and said they might face a greater punishment. And yet, still a fifth person stood up. All of those people wound up pleading guilty to a misdemeanor and were given probation. Protests happen occasionally. They're still relatively muted and basically hustled out of the courtroom so that the arguments can continue.
Taylor Wilson:
And so shifting to Trump, just refresh us, Bart, what exactly are the arguments the Supreme Court will hear on Thursday?
Bart Jansen:
This is a case coming out of Colorado, where the state Supreme Court there ruled that his name could be removed from the state ballot for president because of his involvement in what was called the insurrection at the Capitol Building on January 6th, 2021. That, basically, he had violated a provision in the constitution, the 14th Amendment, which was adopted after the Civil War, to try to make sure that people weren't returned to government who had tried to overthrow the government. He, of course, contests that decision, contests even that he was involved in an insurrection. He contends he was just pursuing election fraud and trying to make sure that the election had been carried out fairly. He is fighting this decision from the state level Supreme Court at the US Supreme Court. And, on Thursday, we're going to hear arguments about whether or not his name should remain on the ballot in that state. And it could have ramifications for other states because the main Secretary of State has also said that she would like to remove his name from the ballot, and there could be others beyond that.
Taylor Wilson:
And we know Trump has had this habit, really, of making a scene at various legal encounters where he's been in attendance. What can we expect from Trump on Thursday, Bart, especially considering these ideas about Supreme Court decorum?
Bart Jansen:
He has not yet said whether he will attend this hearing on Thursday. But he attended two civil lawsuits that he didn't have to attend in recent weeks, even as he was campaigning for president through the Iowa caucuses and the New Hampshire primary. So I think there's some expectation he'll be at the court on Thursday. It's a high profile event. It's something where he, again, wants to advocate for his position. He won't be the one debating. They have lawyers that would be doing that. But I think he is expected to attend.
At the civil trials, he has gotten into some clashes with the judges presiding in the courts. He testified in his own defense at a fraud trial. And challenged the judge, said he was an anti-Trump judge, and so he would clash with the judge, just face to face in the courtroom. He would give hallway interviews, or speeches more like, outside the courtroom. And in a federal court, dealing with a defamation claim, when they were doing jury selection, as they're asking the jurors if they had any problems, feeling that the courts had mistreated them, he raised his hand as well. And so he wasn't fined for that. He wasn't thrown out of court for that. But it's these clashes, or he would say standing up for his position, trying to make his opposition to something known, that aren't common when you're in these fairly serious federal court situations. But that he's made no bones about wanting to speak up for himself fairly forcefully.
Trump isn't expected to speak at this Thursday hearing. He, of course, appointed three of those justices and expects them, I think, to be on his side in this case. So I don't suspect a clash in the courtroom on Thursday, but his presence will be memorable in a very high profile case.
Taylor Wilson:
Bart Jansen is a Justice Department correspondent for USA Today. Thank you, Bart.
Bart Jansen:
Thanks for having me.
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Taylor Wilson:
As the federal government seeks to rein in drug prices, pharmaceutical companies this year have been raising prices on hundreds of name brand drugs. An analysis by the drug research firm, 46brooklyn Research, found that companies increased prices on 910 branded drugs in January. But the median increase was 4.7%, the lowest drug inflation rate in more than a decade. January is a pivotal month for consumers. More than half of annual drug price hikes in the past five years have launched during the first month of the year. Still, pharmaceutical companies do seem to be limiting cost hikes as they navigate price guardrails under two new federal laws. Under the Inflation Reduction Act, drug companies must pay Medicare a rebate if they increase certain prices above the rate of inflation. The law also empowers Medicare to negotiate prices on a select number of drugs. The 2021 American Rescue Plan Act might have a more immediate impact on prices. Drug companies this year could be forced to pay Medicaid rebates that, in some cases, exceed the amount they collect from the drug sales.
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There's new research out showing that many parents continue to support adult children financially. I spoke with USA Today personal finance reporter, Daniel de Vise, to learn more. Hello, Daniel. Thanks for hopping on.
Daniel de Vise:
Hey, great to be here.
Taylor Wilson:
So, Daniel, we have new research out about how many parents continue to support adult children financially. What did this new study find?
Daniel de Vise:
This is from Pew Research, and they do great work. They've studied this before. And in this latest study, report, survey, they're finding that three fifths of parents, about 60%, who have adult children, say they gave them financial help at some point in the last year. That's a lot of adult children getting help.
Taylor Wilson:
Yeah. What are some of the economic challenges that young adults face, creating this need for parental help in some cases?
Daniel de Vise:
I looked up a bunch of different metrics. College costs are up in constant dollars, which means even after inflation. Income out of college wages are fairly flat for people who are young. Wage growth is robust, but a lot of that's for the wealthiest people who are not the youngest people. Housing prices are way up. So all of these things, and then inflation in the last year or two has been insane. All that stuff would be pressing in on young adults. And by young adults, we're talking 20-somethings. I'm thinking of people post-college because that's the group I'm interested in. These aren't college students, most of them, they're really young adults who should have grown and flown by now.
Taylor Wilson:
And, Daniel, do parents who help their adult children like this hurt their own finances?
Daniel de Vise:
Well, they can. It depends how much you're helping. I pay my children's streaming service bill and cell phone bill, and there's some economy there. But if you're paying $2,000 in rent every month for your kid, and if you're a lower income person, that could be potentially ruinous. And, indeed, more than one third of the parents interviewed in this survey said that they have set themselves back financially by helping their adult children.
Taylor Wilson:
And, Daniel, I'm curious what advice financial planners give on this? For the parents themselves, but also for the adult children, in terms of trying to find out their next step. What are the factors here? Does tax bracket play a role? Is there a particular age that planners point to? What should parents and adult children look at when making these decisions?
Daniel de Vise:
I talk to financial planners. I also talk to psychologists. And there's a lot that goes into this. You don't want to feel like you are the piggy bank for your kids. You don't want to feel like you are the emergency fund. So I think both parent and adult kid have to have a sense of, is this a one-time ask or is this something where I'm going to be supporting you into perpetuity? There are families that are wealthy enough that really it's no big deal to help out the adult kids a little bit. I interviewed an attorney. I don't know how wealthy he is. But he pays some of the costs for his adult kids to take a vacation, a family vacation. And that's just fine. I know he can afford that. But if you're not sure, if retirement is looming and you're not quite sure what your retirement plan is, at a minimum, the financial advisors say, "Well, go see a financial planner." And incorporate what you're spending on your kids into that financial plan and find out if it's going to impede your retirement plan.
Taylor Wilson:
Daniel de Vise covers personal finance for USA Today. Daniel, you always force us to ask ourselves some difficult and important questions. Thanks so much for your insight.
Daniel de Vise:
Anytime.
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Taylor Wilson:
The 2024 Grammys are in the books, and the era of Taylor Swift continues. Swift won her 13th and 14th Grammys, including her record fourth Album of the Year Award. She also broke the internet, announcing a new upcoming album in the process. Meanwhile, Miley Cyrus won her first pair of Grammys. And SZA opened the show with a leading nine nominations before winning Best R&B Song, and Best Pop Duo Group Performance. And Billie Eilish won Song of the Year for her hit from the movie Barbie called What Was I Made For? The night was, of course, marked by performances, with social media raving about Tracy Chapman and Luke Combs duet of Chapman's song, Fast Car. You can read more in the entertainment section on usatoday.com.
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Thanks for listening to The Excerpt. You can get the podcast wherever you get your audio. And if you're on a smart speaker, just ask for The Excerpt. I'm Taylor Wilson. Back tomorrow with more of The Excerpt from USA Today.