Latest news with #costoverruns
The Independent
4 hours ago
- Politics
- The Independent
Army reveals the real cost of Trump's birthday parade in Washington
The controversial Army parade through Washington, D.C., in June that coincided with Donald Trump 's birthday cost the service branch $30 million, it announced on Wednesday. 'I can confirm the total for the Army festival and parade cost approximately $30 million,' an Army spokesperson told The Hill. The event, marking the 250th anniversary of the Army, was projected to cost between $25 million and $45 million, not accounting for the cost of police and street repairs tied to the event In addition to cost overruns, some worried the event would damage Washington's infrastructure, though an Army spokesperson said in late June the procession of military hardware had only been shown to damage a single curb, which the Army planned to repair. The parade featured columns of marching troops, fireworks, and antique and modern military hardware like tanks rolling through Washington. The parade may have exceeded expectations on cost and safety, but the event was a controversial one, nonetheless. Critics argued that the sight of the military marching through the capital, at the same time the Trump administration was using the military to quell protests against his administration in Los Angeles, had authoritarian undertones. 'This is the kind of thing that Stalin would have done. This is the kind of thing North Korea does. It sickens me that we're putting on this display just for one man's ego,' Donna Stork, 73, of Hagerstown, Maryland, told The Independent as she watched the event. 'I have no problems with the Army having a celebration,' she added. 'What I do have a problem with is the implication that this is more about Trump and military might than it is about the 250th anniversary of people who fought and died for our country.' Others, including some veterans, praised the event. 'I retired from the Army 30 years ago and I came to honor all the people that came before me, all the friends that I've lost,' Van Beal, 70, who first joined the Army in 1978, told The Independent. A June poll found that 60 percent of respondents thought the event was not a good use of government funds. The parade took place the same day as 'No Kings' protests against the administration, which drew between 4 and 5 million people, according to estimates. The Trump administration claimed 250,000 people attended the parade, though outside estimates suggest fewer than 200,000 were in Washington for the event.
Daily Mail
8 hours ago
- Business
- Daily Mail
Anna Paulina Luna unleashes hell on Fox News host for his 'wild take' on Jerome Powell
Republican Rep. Anna Paulina Luna skewered a Fox Business host and demanded that he retract comments criticizing her criminal referral for Federal Reserve Chairman Jerome Powell. The Florida Republican recommended criminal charges against Powell to the Department of Justice earlier this week alleging he lied to Congress. The effort made good on a promise she made the week before to hold him accountable for cost overruns in the Federal Reserve's Washington HQ remodel. The plan, originally approved by the Federal Reserve's board in 2017, has ballooned in cost from around 1.9 billion to $2.5 billion, prompting outrage from critics. But Fox Business host Stuart Varney, a mainstay on the channel, called out Luna this week for setting a new precedent in recommending charges against Powell over a 'monetary policy.' 'Anna Paulina Luna ... she's taken the fight the Fed fight to a new level,' Varney said on his show. 'She's referred power to the Justice Department. She accuses him of lying to Congress about the expensive renovations at the Fed's headquarters.' 'Lying to Congress is a criminal offense if you have a dispute of a monetary policy, and that's what this is, and you can't change your opponent's mind, should you then charge him with corruption?' Varney asked. 'It seems like we're stepping over a line, and it reminds me of the lawfare harassment of candidate Trump.' Catching wind of Varney's critique, Luna unleashed on the TV host. 'Stuart Varney should take the time to read my criminal referral for Jerome Powell before making uninformed statements on live television,' she posted on X Wednesday. 'Apparently, Varney is telepathic and knows how I think — and also thinks $700 million in mismanaged funds is no big deal? Wild take. You should retract your statement.' Luna claims that Powell perjured himself twice while testifying to Congress about the remodel. Perjury comes with a potential for five years in jail and fines. She accused the chairman of lying about the Federal Reserve's luxurious amenities in the Marriner S. Eccles and misreporting the progress of the renovations. Luna is accusing Powell of false claims while testifying under oath during a Senate committee hearing. Office of Management and Budget (OMB) Director Russell Vought has sent a letter to Powell asking about his congressional testimony on the renovation project. The letter is seen as a pretext to fire Powell for 'cause' over the matter. Vought has also accused the chairman of overseeing an 'ostentatious' remodeling effort. Powell has defended the renovations as necessary regardless of the cost overruns. 'Both buildings were in need of significant structural repairs and other updates to make the buildings safe, healthy, and effective places to work, including the removal of asbestos and lead contamination, complete replacement of antiquated systems such as electrical, plumbing, heating, ventilation, and air conditioning, as well as fire detection and suppression systems,' Powell wrote back to Vought. After a recent meeting with the president last week, Luna predicted on X that Trump would soon fire Powell, though that has not happened yet. Trump has for years lashed out at the chairman for his handling of the U.S. central bank, repeatedly slamming the Fed Chair Powell for not lowering interest rates and bestowing him with the nickname 'Too Late' Powell. The chairman has taken a wait and see approach to interest rates, arguing that it is better for consumers to keep borrowing costs stable are global markets digest Trump's tariff plan. The president has vacillated on firing Powell, a move that no president has taken before, but he may end up waiting out his term, which expires mid-2026.
Yahoo
5 days ago
- Business
- Yahoo
Trump officials using building renovation costs to go after Fed chair, WSJ says
This story was originally published on Facilities Dive. To receive daily news and insights, subscribe to our free daily Facilities Dive newsletter. Cost overruns incurred by the Federal Reserve on the renovation of its headquarters and two other buildings it owns in Washington, D.C., are the kind of thing building owners frequently deal with when undertaking complex construction projects but Trump administration officials are giving them a high-profile examination, The Wall Street Journal reports. The agency in 2019 said it was spending about $1.9 billion on the renovations but that cost ballooned almost 35% to $2.6 billion after the agency switched gears on aspects of the sprawling project, the Journal said. Among other things, the agency added high-cost below-ground square footage to its office building adjacent to its historic headquarters to offset space it lost after the U.S. Commission of Fine Arts asked it to nix plans for a five-story tower addition. That commission and the National Capital Planning Commission share jurisdiction for reviewing building plans in Washington. Once construction began, the general contractor came across unexpected asbestos in the building, toxic soil contamination and a higher-than-expected water table, the Journal said. Inflation was a problem, too. Budget documents released at the end of last year showed 'significant increases' in the cost of steel, cement, wood and other materials that 'far exceed standard cost escalations,' the Journal reported. There was also a costly disruption when the agency fired the original architectural and engineering firm it had hired to work on one of the buildings after the Fed's inspector general called out the firm's performance. Academics and others are concerned the Trump administration is using the cost overruns to shine an unflattering spotlight on the Fed chair, Jerome Powell, whom President Trump has said he'd like to replace for his unwillingness to lower interest rates. Powell was appointed by Trump in his first term and is slated to serve until his appointment as chair ends in May 2026. 'We are in a high-stakes moment in the history of the Federal Reserve,' Peter Conti-Brown, a Fed scholar at the University of Pennsylvania, said in a July 11 Journal report. 'It seems clear to me that the Trump administration, using various mechanisms, [has] now cooked up a post-hoc explanation for Powell's removal.' The White House budget director Russ Vought blasted the overruns in a social media post earlier this month, calling them double the cost for renovating an ordinary historic federal building, at $1,923 per square foot. He reproduced a letter he had sent Powell questioning the veracity of testimony the Fed chief had given earlier in June in a Senate hearing. Among other things, Vought questioned why the Fed chief didn't notify the National Capital Planning Commission when it decided to replace the five-story addition with the below-ground space. Powell responded with a letter saying the commission had no financial oversight over the project so the Fed wasn't required to give it notice. A Fed official later told the Journal the Fed's external building manager hadn't advised the agency that any of the planned changes needed to be submitted to the commission. At the time of the exchange between Vought and Powell, the administration appointed to the planning commission several Trump advisors, including White House Deputy Chief of Staff Michael James Blair, who in mid-July likened Powell to Marie Antoinette on social media for what he called design excesses in its plans. 'Let them eat basis points,' Blair posted. 'At a time when the Fed is running an operating deficit, maintains high interest rates, and is receiving significant public scrutiny, one has to wonder whether the so-called 'Taj Mahal near the National Mall' project is in the best interests of the board & the public it serves,' Blair said in another post. The excesses Blair and other critics were looking at included a 'high-gloss finish' on the five-story addition that was later abandoned, according to the Journal. Looked at in its most negative light, the public grilling and criticism could be a 'dangerous step toward manufacturing a legal justification for Powell's removal,' said the Journal, paraphrasing Conti-Brown. Lawmakers have warned against firing the Fed chair. 'The consequences of firing a Fed chair … will be to undermine the credibility of the United States going forward,' Sen. Thom Tillis (R-N.C.) said on the Senate floor earlier this month. 'If it happens, you are going to see a pretty immediate response, and we've got to avoid that.' The U.S. Supreme Court in May indicated in a ruling the president can only fire the Fed chair for cause – typically dereliction of duty or malfeasance in office, according to academics – and Trump has said, although he's unhappy with Powell's performance, he's unlikely to seek his dismissal. The ruling concerned the president's authority to fire other officials but singled out the Fed chair as an exception. 'The Federal Reserve is a uniquely structured, quasi-private entity that follows in the distinct historical tradition of the First and Second Banks of the United States,' the ruling said. But given their high profile criticism directed at the renovation project, Trump officials appear to be trying other means to coax Powell out, according to the Journal. 'The building brouhaha echoes an effort by President Richard Nixon ahead of the 1972 election to put pressure on his Fed chair, Arthur Burns, to keep interest rates low by planting a false story in the press that Burns was seeking a pay raise at the same time he was proposing national wage and price controls,' the Journal said. Recommended Reading Trump orders GSA to advance 'beautiful' federal buildings Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
6 days ago
- Business
- Reuters
BHP delays Jansen potash project as costs surge; logs record copper output
July 18 (Reuters) - BHP Group ( opens new tab flagged delays and cost overruns of about 30% for its key Jansen Stage 1 potash project on Friday, even as the miner reported record annual copper production above 2 million metric tons and warned of a decline next year. The cost blowouts that could be up to $1.7 billion represents a significant setback for BHP, which had accelerated potash production following Russia's invasion of Ukraine, anticipating higher fertiliser prices due to supply disruptions from sanctioned Russian and Belarusian producers. The world's largest listed miner has spent more than a decade trying to break into the potash market as part of its diversification strategy. BHP attributed the cost blowouts to design and scope changes, inflationary pressures, and lower-than-expected productivity during construction. BHP said first production from its Jansen Stage 1 potash project in Canada has been pushed back to mid-2027 from the previously targeted end-2026, while capital expenditure estimates have surged to $7.0 billion-$7.4 billion from $5.7 billion. Adding to the project's challenges, BHP is considering delaying the second stage of Jansen by two years due to concerns about potential oversupply in the global potash market. "Given potential for additional potash supply coming to the market in the medium term, and as part of our regular review of the sequencing of capital projects under the capital allocation framework, we are considering a two-year extension for the execution of Jansen Stage 2," the company said in a statement. BHP committed $4.9 billion towards Jansen's second stage development in October 2023, with first production scheduled before June 2029. The company said it had spent only $400 million of the committed funds for the second phase. The miner reported copper production of 2.02 Mt for fiscal 2025, at the upper end of its forecast range. However, it said it expects output to drop to between 1.8 Mt and 2.0 Mt in fiscal 2026, reflecting planned lower grades at its flagship Escondida mine in Chile. Shares of the company rose 2.9% to A$40.26 by 0144 GMT, outperforming a 1.6% jump in the mining sub-index (.AXMM), opens new tab. BHP logged record annual iron ore production of 290 Mt, at the upper end of its guidance, while its fourth-quarter output of 77.5 Mt beat consensus estimates. BHP is also assessing a potential divestment of its Western Australia Nickel assets as part of a review, citing balance sheet impacts from the nickel business.
Reuters
6 days ago
- Business
- Reuters
Fed's Powell responds to White House on Fed headquarters renovation
July 17 (Reuters) - Federal Reserve Chair Jerome Powell on Thursdayresponded, opens new tab to a Trump administration official's demands for information about cost overruns for a renovation project at the central bank's Washington headquarters campus, saying the project was large in scope and involved a number of safety upgrades and hazardous materials removals. "As explained on the Board's public website, we take seriously the responsibility to be good stewards of public resources as we fulfill the duties given to us by Congress on behalf of the American people," Powell wrote in his letter to Office of Management and Budget Director Russell Vought. "We have taken great care to ensure the project is carefully overseen since it was first approved by the Board in 2017." He noted that the project's budget is subject to annual approval by the Fed Board and that the Fed's inspector general has full access to information on costs and other details. Vought last week accused Powell of overseeing an "ostentatious" and costly overhaul of the buildings, and demanded answers from Powell to a series of questions about the project, which has emerged as the latest line of attack against Powell by the Trump White House. "Dear Mr. Vought," Powell said in his letter, "both buildings were in need of significant structural repairs and other updates to make the buildings safe, healthy, and effective places to work, including the removal of asbestos and lead contamination, complete replacement of antiquated systems such as electrical, plumbing, heating, ventilation, and air conditioning, as well as fire detection and suppression systems." The project did not include private elevators or VIP dining rooms, or new marble except where the original was damaged "or where needed to keep with historic preservation guidelines and to address concerns raised by external review agencies," Powell said. Trump, who wants Powell gone from the Fed because he hasn't delivered interest-rate cuts, has raised the renovation project as a possible fresh reason for ousting the Fed chief, suggesting there could be fraud without providing evidence. Vought has said that administration officials are trying to visit the site to inspect it. 'It's for a big, beautiful mansion for the Federal chairman,' White House spokeswoman Karoline Leavitt said during a White House press briefing on Thursday. 'It's completely unnecessary. It's overpriced, and I think it's a good thing the administration, led by the president, is looking into it.' Leavitt was asked if the review finds any wrongdoing, will it trigger the president to fire Powell. 'Look, it's a hypothetical question. We'll see where it goes,' Leavitt said. Powell's letter was largely a reiteration of what he told members of the Senate Banking Committee earlier this week, and of detailed, opens new tab explanations on the Fed's website of the project countering Vought's assertions that changes to the project violated rules set by the National Capital Planning Commission and required the commission's review. The Fed has worked closely and collaboratively with the NCPC, Powell said, and the changes that the Fed has made were not substantial and therefore did not meet the NCPC's own guidance for what would need additional review.
