Category: Americas

MIL-OSI USA: DOGE went looking for phone fraud at SSA — and found almost none

US Senate News:

Source: United States Senator for Massachusetts – Elizabeth Warren
May 15, 2025
After installing anti-fraud checks for benefit claims made over the phone early last month, the Social Security Administration is considering walking back the policy after finding only two cases that had a high probability of being fraudulent.
The anti-fraud tool set up last month after weeks of changes to the agency’s telephone policies has slowed retirement claim processing by 25% and led to a “degradation of public service,” according to an internal May document obtained by Nextgov/FCW that examined potentially cutting the anti-fraud tool for phone claims.
Under the new policy, the agency found that only two benefit claims out of over 110,000 had a high probability of being fraudulent — and they aren’t guaranteed to be so. Less than 1% of claims were flagged as even potentially fraudulent at all.
“No significant fraud has been detected from the flagged cases,” the internal document said.
The attention to fraud, however, did cause delays, as SSA changed its phone procedures to add the checks on the backend.
The lags stem from the three-day hold placed on telephone claims in order to run the antifraud claims, a move that “delays payments and benefits to customers, despite an extremely low risk of fraud,” as the document noted.
When SSA put the policy in place in early April, the agency said it would require people deemed suspicious to go in-person to an office to prove their identity.
Initially, the anti-fraud algorithm was being run against all phone claims, but SSA later narrowed it only to retirement, survivors and auxiliary claims — not disability claims — after internal pushback, two employees told Nextgov/FCW. SSA uses Transunion and PinDrop for anti-fraud detection on its phone calls, according to one employee.
SSA’s leadership is now considering changing the policy, especially the three-day hold, and potentially making changes around identity proofing writ large, one agency employee told Nextgov/FCW. The agency did not respond to a request for comment.
The additional slowdown to retirement processing comes as the agency deals with an influx of retirement claims this year that surpasses previous numbers, according to an internal SSA email announcing a sprint to bring that number down. SSA has over 140,000 unprocessed retirement claims that are over 60 days old.
Announced in April, the anti-fraud check policy for benefit claims made over SSA’s phone lines was one of many changes and reversals the agency announced as DOGE and White House officials made false and misleading claims about fraudsters getting benefits over the phone.
Aram Moghaddassi, a DOGE engineer, notably said during a March 27 interview on Fox News that 40% of phone calls made to SSA to change direct deposit information come from fraudsters.
The agency itself has said that, in actuality, 40% of direct deposit fraud at the agency is associated with phone calls, not that 40% of all calls regarding changes to bank information are made by fraudsters.
Musk repeated a similar claim that 40% of the agency’s calls were “fraudulent” during a speech in late March.
Vice President J.D. Vance has also repeated this talking point — following it by saying “DOGE has got a lot of work to do” — as well as other, false assertions about impossibly elderly people claiming benefits, something the agency has said is actually a result of a quirk in the system, not old or dead people receiving benefits. President Donald Trump has also repeated this claim about extremely old people getting benefits.
In March, the agency announced that people couldn’t file claims at all over the phone anymore, or use the phone lines to change direct deposit information.
Only about a week later, SSA changed those claim restrictions to retirement, survivor, and family benefit claims alone, before later allowing all to file over the phone with the anti-fraud checks running on the backend to flag potential fraudsters.
“The Trump-Musk Social Security takeover has only meant more chaos and confusion for Americans,” Sen. Elizabeth Warren, D-Mass., said in response to the information obtained by Nextgov/FCW about the policy’s implementation.
Warren launched a “Social Security War Room,” with other lawmakers in April to push back against the Trump administration’s work at SSA.
“Every one of DOGE’s so-called ‘mistakes’ is a backdoor cut to people’s benefits,” she said. “There’s nothing efficient about making it harder for people to access the checks they’ve earned and are owed.”
Overall, fraud at SSA is a miniscule problem. Only 0.3% of SSA’s old-age, survivor and disability insurance payments are considered “improper payments” — a category that also covers mistakes, like payments that should’ve been made but were missing a signature. Only a sliver of that 0.3% is due to fraud, according to a recent oversight report.
The SSA numbers obtained by Nextgov/FCW also relate only to claims made over the phone, not for direct deposit changes made by phone. Limits on changing direct deposit information over the phone still exist.
SSA’s inspector general did recommend that the agency beef up security controls around direct deposit changes in 2012, although direct deposit fraud that happens over the phone is less than 0.0003% of total benefits.
For now, people who want to change their direct deposit information are required to get a one-time code online via their SSA account before they can do so over the phone.
Otherwise, they have to go into an office — a fact that still worries Kathleen Romig, director of social security and disability policy at the Center on Budget and Policy Priorities, as it’s estimated that the policy will send millions to SSA offices, which are far away and difficult to get to for many.
Romig wasn’t surprised by how little suspected fraud SSA found in claims made over the phone.
“It seemed like a solution in search of a problem,” she said. “So many of these policy changes — the proposals, the reversals, the things that SSA has done over these past several months — seem to have been fueled by misinformation from people like Elon Musk.”
By: Natalie AlmsSource: NextGov

MIL OSI USA News –

May 16, 2025

MIL-OSI USA: Reconciliation Recommendations of the House Committee on Education and Workforce

Source: US Congressional Budget Office

Legislation Summary

H. Con. Res. 14, the Concurrent Resolution on the Budget for Fiscal Year 2025, instructed the House Committee on Education and Workforce to recommend legislative changes that would decrease deficits by not less than a specified amount over the 2025-2034 period. As part of the reconciliation process, the House Committee on Education and Workforce approved legislation on April 29, 2025, with provisions that would decrease deficits over that period.

The reconciliation recommendations of the House Committee on Education and Workforce would amend the federal student aid programs authorized by the Higher Education Act of 1965. Specifically, the legislation would modify the federal student loan program by changing repayment terms, loan limits, and requirements for institutional eligibility and alter eligibility for the Federal Pell Grant Program. The legislation also would limit the administrative authority of the Department of Education, repeal certain regulations, and create a new institutional grant program funded through payments from postsecondary institutions.

Estimated Federal Cost

The reconciliation recommendations of the House Committee on Education and Workforce would decrease deficits by $349.1 billion over the 2025-2034 period, CBO estimates. The estimated budgetary effect of the legislation is shown in Table 1. The costs of the legislation fall within budget functions 500 (education, training, employment, and social services) and 700 (veterans benefits and services).

Return to Reference

Table 1. Estimated Budgetary Effects of Reconciliation Recommendations Title III, House Committee on Education and Workforce, as Ordered Reported on April 29, 2025
	By Fiscal Year, Billions of Dollars
	2025	2026	2027	2028	2029	2030	2031	2032	2033	2034	2025-2029	2025-2034
	Decreases in Direct Spending
Budget Authority	-199.1	-14.7	-14.5	-16.8	-19.8	-20.5	-20.9	-21.2	-21.6	-21.8	-264.8	-370.8
Estimated Outlays	-197.9	-14.3	-12.7	-12.7	-15.7	-18.5	-19.1	-19.2	-19.4	-19.6	-253.3	-349.1
	Decrease in the Deficit From Changes in Direct Spending
Effect on the Deficit	-197.9	-14.3	-12.7	-12.7	-15.7	-18.5	-19.1	-19.2	-19.4	-19.6	-253.3	-349.1

Basis of Estimate

For this estimate, CBO assumes that the legislation will be enacted in summer 2025. CBO’s estimates are relative to its January 2025 baseline and cover the period from 2025 through 2034.

Budgetary Treatment of Federal Student Loans and Pell Grants

CBO estimates that enacting the legislation would affect spending both for the federal student loan program and for the Federal Pell Grant Program. Those programs are treated differently in the federal budget than most other federal programs.

Federal Direct Student Loan Program. As required by the Federal Credit Reform Act of 1990 (FCRA), the costs of the federal student loan program are estimated on a net-present-value basis. A present value is a single number that expresses a flow of current and future payments or receipts in terms of an equivalent lump sum paid or received at a specific time. The value depends on the rates of interest, known as the discount rates, used to translate future cash flows into current dollars. FCRA specifies those discount rates as the rates on Treasury securities with similar terms to maturity. As required by FCRA, changes to the estimated costs of outstanding student loans are shown in the year of the enactment of legislation that modifies their terms. The administrative costs of the student loan program are estimated on a cash basis.

Federal Pell Grant Program. Pell grants provide need-based aid to undergraduate students; they are funded both through discretionary appropriations and through direct spending. For the 2024‑2025 academic year, which began on July 1, 2024, the maximum award funded by discretionary appropriations that a student can receive is $6,335. The discretionary maximum award amount, and the amount of discretionary funding, are set in the annual appropriation act. CBO’s estimate of the program’s cost is based on an assumption that the maximum award will stay the same through 2034.

The program also has direct spending authority to support a “mandatory add-on,” which increases the award amount by $1,060 above the discretionary maximum. As a result, for the 2024-2025 academic year, the total maximum award is $7,395.

The bulk of the Pell Grant Program is subject to the appropriation of federal funds. Although CBO anticipates that implementing the legislation would reduce spending subject to appropriation for the discretionary portion of the program, we have not reviewed the legislation for effects on spending subject to appropriation. Only changes to the cost of the mandatory add-on are included in the estimate.

Direct Spending

CBO estimates that enacting the legislation would decrease direct spending outlays, on net, by $349.1 billion over the 2025-2034 period (see Table 2).

Subtitle A. Student Eligibility

Subtitle A would amend eligibility for federal student aid based on immigration status and adjust the formula for determining the amount of federal aid for which students and their parents would be eligible.

CBO estimates that enacting subtitle A would decrease direct spending outlays by $518 million over the 2025-2034 period.

Changes to Aid Eligibility for Certain Immigrants. The legislation would prevent certain aliens (non-U.S. nationals) from receiving federal student aid, including asylees, refugees, Haitian entrants, certain Cuban parolees, T nonimmigrants (trafficking victims), and certain aliens who are victims of domestic violence.

Overall, CBO expects that enacting this provision would reduce the number of students receiving federal student aid by less than 1,000 each year. Most of the reduction in eligibility would come from Haitian entrants (roughly 70 percent). On that basis, CBO estimates that enacting this provision would reduce direct spending outlays by $15 million over the 2025‑2034 period: $7 million from reductions in the cost of federal student loans and $8 million from reductions in the mandatory add-on for Pell grants.

Amending Eligibility for Federal Aid. The legislation would cap the total amount of federal aid a student can receive annually at the median cost of college, defined as the median cost of attendance for students enrolled in similar programs. Because loan limits under current law for subsidized and unsubsidized loans are lower, on average, than the median cost of college for most programs, CBO expects that enacting this provision would mostly affect eligibility for parent PLUS and grad PLUS loans. Under current law, students and parents in those programs may borrow up to their institution’s cost of attendance. Using data from the National Postsecondary Student Aid Study (NPSAS) and the National Student Loan Data System (NSLDS), CBO expects enacting this section would reduce annual grad PLUS borrowing by 8 percent and parent PLUS borrowing by 13 percent, primarily for borrowers with the highest cost of attendance.

In CBO’s estimation, borrowers in the parent PLUS program pay more in principal and interest than they borrow (on a net-present-value basis). On that basis, CBO expects that reducing parent PLUS volume would increase costs to the government. Conversely, CBO estimates that borrowers of other student loans (including grad PLUS loans), on average, repay the government less than they borrowed (on a net-present-value basis). Thus, reducing lending in those programs decreases costs to the government. CBO expects that enacting the provision would reduce net outlays for student loans by $520 million over the 2025-2034 period.

The legislation also would exclude farm and small business assets from the Student Aid Index (SAI) calculation for Pell grants, generally increasing award levels for students with those assets. Data from a sample of Pell grant recipients indicates that only a small number of recipients or their families own farms or small businesses. CBO estimates that enacting the provision would increase direct spending outlays for Pell grants by $17 million over the 2025-2034 period.

Subtitle B. Loan Limits

Beginning July 1, 2026, subtitle B would convert subsidized loans into unsubsidized loans and eliminate the grad PLUS loan program, restrict lending under the parent PLUS program, and amend all annual and aggregate loan limits.

CBO estimates that enacting the provisions in subtitle B would reduce direct spending outlays by $51.2 billion over the 2025-2034 period. Those savings are estimated on a net-present-value basis and shown in the years in which the loans are originated.

Eliminate Subsidized Loans and Increase Unsubsidized Loans.The legislation would eliminate subsidized loans and expand borrowing in the unsubsidized loan program for new borrowers starting in academic year 2026-2027, and for all borrowers starting in the 2029‑2030 academic year.

Under current law, subsidized loans do not accrue interest while the borrower is enrolled in school or in the six months before entering repayment, during the first three years of enrollment in certain income-driven repayment (IDR) plans, and during certain deferment periods. CBO projects that under current law students will borrow roughly $20 billion annually in subsidized loans over the 2026-2034 period. Converting those loans to unsubsidized loans would reduce the cost to the federal government by increasing the interest that borrowers pay on their loans. CBO expects that most students who currently borrow in the subsidized loan program would continue to borrow the same amount in the unsubsidized program. Enacting this provision would reduce outlays by $20.2 billion over the 2025-2034 period, CBO estimates.

Eliminate Grad PLUS Loans and Amend Limits for Unsubsidized Graduate Loans. The legislation would eliminate grad PLUS loans for new graduate borrowers starting in academic year 2026-2027, and for all borrowers starting in the 2029-2030 academic year.

The legislation also would amend annual and aggregate loan limits for graduate students in the unsubsidized graduate loan program. Specifically, the legislation would allow graduate students to take out unsubsidized loans up to the median annual cost of their program, with an aggregate maximum of $100,000, or $150,000 if the borrower is enrolled in a graduate professional program. Under current law, graduate students may borrow up to $20,500 each year in unsubsidized loans (with a total aggregate cap for most borrowers of $138,500), and they can borrow up to the cost of attendance in grad PLUS loans, which do not have an aggregate cap.

Under current law, CBO estimates that borrowers will take out roughly $19 billion in grad PLUS loans annually over the 2026-2034 period. Based on an analysis of current borrowing patterns in NPSAS and NSLDS, CBO expects that students who would have borrowed in the grad PLUS program under current law would instead borrow in the graduate unsubsidized program, up to the new limits.

CBO expects that enacting both provisions would increase unsubsidized graduate borrowing by 25 percent. On that basis, CBO estimates that eliminating grad PLUS loans and amending unsubsidized loan limits for graduate borrowers would reduce outlays by $34.7 billion over the 2025‑2034 period.

Restrict Parent PLUS Borrowing and Amend Undergraduate Loan Limits. Beginning on July 1, 2026, the legislation would cap parent PLUS loans at the student’s cost of attendance, by program, minus the maximum in unsubsidized loans the student may borrow in a given year. Students would be required to take out that maximum amount before their parent could borrow under the parent PLUS program. The legislation would set an aggregate cap of $50,000 for parent PLUS loans. There is no aggregate cap on parent PLUS borrowing under current law.

Additionally, beginning on July 1, 2026, the legislation would allow undergraduate students regardless of dependency status, to take out unsubsidized loans up to the median cost of college for their program of study in a given year, minus any amount awarded in a Pell grant for that year. The aggregate borrowing limit for all undergraduate borrowers would be $50,000.

Under current law, dependent and independent undergraduate students are subject to different annual and aggregate loan limits based on their class level in school and dependency type. On average, the median cost of college exceeds the current annual loan limits for dependent and independent students. Those current aggregate limits are $31,000 for dependent students and $57,500 for independent students.

Under current law, CBO estimates that parent PLUS borrowers will take out an average of roughly $13 billion in loans annually over the 2026-2034 period. Under the loan limits specified in the legislation, CBO estimates that parent PLUS borrowing would total roughly $4 billion annually, on average, over the same period.

The legislation also would permit institutions to cap annual loan amounts according to a student’s program of study, as long as that limit is applied consistently to all students enrolled in a given program. Using information from financial aid associations and other sources, along with data from NPSAS, CBO expects that, under the new loan limits, this provision would limit some of the otherwise expected increase in lending.

Finally, the legislation would treat pilot-training programs as professional programs, allowing those undergraduate students to borrow up to $150,000. (Currently those students can borrow up to the amount set for their undergraduate aggregate cap, based on dependency).

CBO estimates that the increases in limits on undergraduate unsubsidized loans, in combination with the restrictions on parent PLUS loans and other provisions, would increase undergraduate borrowing in the unsubsidized program by roughly 15 percent.

In CBO’s estimation, borrowers in the parent PLUS program pay more in principal and interest than they borrow (on a net-present-value basis). Thus, CBO expects that reducing parent PLUS volume would increase costs to the government. Conversely, CBO estimates that borrowers of undergraduate loans, on average, repay the government less than they borrowed (on a net-present-value basis). Thus, increasing lending of undergraduate loans increases costs to the government. CBO estimates that enacting those provisions together would increase outlays for student loans by $19.1 billion over the 2025-2034 period.

Set Annual Loan Limits by Enrollment Intensity.The legislation would reduce annual loan limits for undergraduate and graduate loans for students who are not enrolled full time in proportion to their hours of enrollment. Under current law, students enrolled at least half time (for example, six credit hours per semester) are eligible for the full annual loan amounts. Using data from NPSAS and NSLDS, CBO expects that this provision would reduce the volume of loans made to students by about 5 percent and reduce outlays by $15.4 billion over the 2025‑2034 period, relative to current law.

Subtitle C. Loan Repayment

The legislation would amend repayment terms for current and new student loan borrowers by limiting income-driven repayment options and extending terms for standard plans based on the amount of debt a borrower holds.

CBO estimates that those changes would reduce direct spending outlays for student loans by $294.6 billion over the 2025-2034 period.

For this analysis, CBO used survey data from NPSAS and administrative data from NSLDS. The agency supplemented that information with other data as inputs to project borrowers’ lifetime earnings and repayment of loans. CBO also consulted with a range of experts on postsecondary student aid and reviewed literature on postsecondary enrollment and borrowing.

Loan Repayment for New Loans.Under the legislation, the Department of Education would offer borrowers two repayment plans for loans originated after June 30, 2026: a standard repayment plan and a new IDR plan. The legislation would eliminate all other plans, including the Saving on a Valuable Education (SAVE) Plan, the IDR plan created administratively in 2023.

Loans entering repayment would automatically be enrolled in a standard repayment plan, with the length of the repayment term determined by the amount borrowed:

10 years for borrowers with balances less than $25,000;
15 years for borrowers with balances between $25,000 and $50,000;
20 years for borrowers with balances between $50,000 and $100,000; and
25 years for borrowers with balances greater than $100,000.

Monthly payments would be fixed for the life of the loan. Borrowers with balances greater than $25,000 who fully repay their loans over the longer repayment period would pay more interest, but their monthly payments would be smaller than if they were in a 10-year standard plan.

Borrowers would be able to select a new IDR plan, called the Repayment Assistance Plan, which would:

Set a minimum monthly payment of $10. All existing IDR plans generally allow for payments of zero for borrowers with low income.
Set payments to between 1 percent and 10 percent of a borrower’s total adjusted gross income, depending on the borrower’s income, and reduce payments by $50 per month for every dependent child. Under the current SAVE Plan, borrowers pay between 5 percent and 10 percent of their income above 225 percent of the federal poverty guideline, after accounting for family size.
Waive 100 percent of unpaid, accrued interest when a borrower’s calculated payment does not cover accrued interest; the same is true for the current SAVE Plan.
Match the monthly amount paid by borrowers up to $50 and apply that match to the outstanding principal balance; the current SAVE Plan has no such match.
Forgive any remaining balance after 30 years of repayment. The current SAVE Plan forgives balances after 10 to 25 years of repayment, depending on the loan type and amount borrowed.
Require borrowers to remain on the plan until their balance is paid in full, or 30 years, whichever is sooner. Currently, borrowers can switch into other plans.

Under the legislation, CBO estimates that about 40 percent of the loan volume originated after June 30, 2026, would be repaid through the proposed IDR plan. In contrast, under current law, CBO estimates that roughly 70 percent of loan volume would be repaid under existing IDR plans. Borrowers repaying their loans would pay more, on average, under the IDR plan proposed in the legislation than under current law. For new loans, CBO estimates that implementing the new repayment plans would decrease outlays by $133.6 billion over the 2025-2034 period.

Borrowers in Repayment.Under subtitle C, borrowers who currently are in any IDR plan would be transferred to a newly proposed IDR plan. Under that plan, payments would be set at 15 percent of a borrower’s discretionary income, with no cap on payment amounts, and borrowers would receive forgiveness of any outstanding debt after 20 years in repayment if they have undergraduate loans only and 25 years if they also have graduate loans. Borrowers could also opt into the new Repayment Assistance Plan (described above) or into a standard repayment plan.

As required by FCRA, the savings from changes to the costs of existing loans would be recorded in fiscal year 2025. CBO estimates that changes to repayment terms for borrowers currently in repayment would reduce outlays by $162.0 billion in fiscal year 2025.

Other Changes. Enacting subtitle C also would have other effects:

For loans disbursed on or after July 1, 2025, the subtitle would eliminate unemployment and economic hardship deferments and reduce the total period a borrower may be in forbearance. CBO expects borrowers who otherwise would have taken those types of deferments would, under the legislation, enroll in the new IDR plan, begin repaying sooner than under current law, or default. On average, CBO estimates that borrowers would pay less on their loans under the legislation than under current law. CBO estimates that enacting this provision would increase outlays by $340 million over the 2025-2034 period.
Loan repayments by new graduate doctors and dentists during residency would not be counted toward the total number of payments needed to qualify for the Public Service Loan Forgiveness Program. The provision also would allow four years of interest-free forbearance for borrowers in medical or dental internships or residencies on loans disbursed on or after July 1, 2025. CBO estimates that implementing this provision would, on net, decrease outlays by $430 million over the 2025-2034 period.
Borrowers would be permitted to rehabilitate defaulted loans twice. CBO estimates that implementing this provision would increase outlays by $130 million over the 2025-2034 period.
The legislation would directly appropriate $500 million in fiscal year 2025 and in fiscal year 2026 for servicing student loans. CBO estimates that implementing this provision would increase outlays by $1.0 billion over the 2025-2034 period.

Subtitle D. Pell Grants

Subtitle D would change eligibility rules for the Federal Pell Grant Program. Although the effective date for most of the subtitle’s provisions is July 1, 2025, CBO expects that date would not provide sufficient time to implement the provisions for the 2025-2026 academic year, which begins on July 1, 2025. We assume for this estimate that those provisions will take effect on July 1, 2026, for the 2026-2027 academic year.

Pell grant eligibility is determined by the Student Aid Index, a formula that accounts for students’ income and assets and, for dependent students, family income and assets. An SAI is calculated for each student and used to determine their award amount; a higher SAI represents lower financial need. Awards are prorated relative to the definition of full-time enrollment for their school’s curriculum type. Students who qualify for an amount below the maximum, or who do not qualify on the basis of their SAI, may still qualify if their adjusted gross income meets thresholds that are based on the federal poverty guideline.

Most of the estimates below are based on analyzing a sample of aid applicants and Pell grant recipients that CBO received from the Department of Education. Additional sources of data are discussed with each estimate.

The costs discussed here are for direct spending outlays only; they involve changes to the mandatory add-on. CBO has not reviewed the legislation for changes in spending subject to appropriation, and estimates of the cost for the discretionary portion of the program are not included.

CBO estimates that enacting subtitle D would increase direct spending outlays by $2.8 billion over the 2025-2034 period.

Foreign Income and Federal Pell Grant Eligibility. Subtitle D would amend the eligibility calculation to include foreign income, most of which is excluded from the calculation under current law. That would reduce the award amounts for some recipients with foreign income. CBO estimates that less than 1 percent of Pell grant recipients earn foreign income. On that basis, CBO estimates that enacting this provision would reduce direct spending outlays by $66 million over the 2025-2034 period.

Change the Definition of Full-Time Enrollment. Subtitle D would increase the number of credits needed to qualify for full-time enrollment from 12 per semester to 30 per year. Under current law, students who are enrolled less than full time receive prorated grants. Raising the number of credits would decrease award amounts for students who currently are enrolled in fewer than 30 credits per year. CBO estimates that under this provision, more than half of students currently enrolled would receive smaller grants. Based on past award increases, National Student Clearinghouse data on time to completion, and existing financial incentives for early graduation, CBO estimates that about one-fifth of expected grant recipients would enroll in additional credits to increase their award amounts. On that basis, CBO estimates that enacting this provision would reduce direct spending outlays by $7.1 billion over the 2025‑2034 period.

Eliminate Eligibility for Students With a High SAI. Subtitle D would eliminate eligibility for students whose SAI is double the amount for the Pell grant maximum award. CBO estimates that less than 1 percent of Pell grant recipients meet or exceed that threshold, and those who do generally receive the minimum award. On that basis, CBO estimates that enacting this provision would reduce direct spending outlays by $78 million over the 2025‑2034 period.

Eliminate Eligibility for Students Enrolled Less Than Half Time. Subtitle D would require a student to be enrolled half time, that is, for at least six credits per semester, to receive a grant. Program data indicate that in recent academic years roughly 10 percent of recipients were enrolled for less than half time. Based on past increases under the program and data from the National Student Clearinghouse on time to completion, CBO expects that about one-third of the recipients who would lose their award under this provision would enroll in additional credits to avoid doing so. CBO estimates that enacting this provision would reduce direct spending outlays by $687 million over the 2025-2034 period.

Workforce Pell Grants. Subtitle D would extend eligibility for Pell grants to students enrolled in workforce programs that can be completed in 150 to 600 clock hours, or an equivalent number of credit hours, provided the program meets standards for certification, completion, and after-graduation earnings. Under current law, students enrolled in programs requiring fewer than 600 clock hours are ineligible for Pell grants.

Using data from the Department of Education, statistics from the American Association of Community Colleges, and published reports, CBO estimates that, under the legislation, by 2034 about 100,000 new recipients each year would receive Workforce Pell Grants of about $2,200 each (about 20 percent of that amount would come from mandatory funds). On that basis, CBO estimates that enacting the provision would increase the cost of the mandatory add-on by $298 million over the 2025-2034 period.

To be eligible for Pell grant funds, postsecondary programs would need to demonstrate job placement and completion rates of at least 70 percent. Their tuition and fees must not exceed the difference between the median earnings of students who complete the program and 150 percent of the federal poverty guideline.

CBO expects that fewer than half of the current short-term programs at institutions that already receive financial aid under title IV of the Higher Education Act would become newly eligible under the legislation. However, using information from community colleges and research on postsecondary education, CBO expects that many of the students already receive Pell grants because they are enrolled in short-term programs that are “stacked” within longer-term programs that are eligible for Pell grant funding. As a result, under current law, those students can receive Pell grants even if they do not complete the longer-term program.

In addition, many short-term programs that do not currently receive federal financial aid funding, particularly those in the proprietary sector, would not participate in the Pell Grant Program under the legislation. Those institutions would be excluded either because they could not meet the requirements in the legislation or because they would choose not to meet the additional requirements for participation in federal student aid programs.

Pell Shortfall. Subtitle D would directly appropriate additional mandatory funds to support the portion of Pell grants funded mostly through annual discretionary appropriations: $3.2 billion in 2026, $4.8 billion in 2027, and $2.5 billion in 2028. Enacting the provision would increase direct spending outlays by $10.5 billion over the 2025-2034 period, CBO estimates.

Subtitle E. Accountability

Under the legislation, postsecondary institutions could be required to make annual payments, called risk-sharing payments, in order to participate in the federal student loan program. Those payments would be the main source of funding for the Promoting Real Opportunities to Maximize Investments and Savings in Education (PROMISE) grants, which would be made to eligible postsecondary education institutions to help improve affordability and promote success for students.

CBO estimated the amounts in risk-sharing payments on a cash basis rather than using FCRA procedures because those annual payments are based on cohorts of loans and are not tied directly to, or made on behalf of, any individual loan. The legislation defines loan cohorts as groups of loans to borrowers who exit a program in the same year. CBO estimated the effects of those provisions as if all other provisions in the legislation were enacted simultaneously. For example, the estimate for the amount of risk-sharing payments incorporates the assumptions that borrowers would no longer be eligible for the current SAVE Plan, that grad PLUS loans would no longer be available, and that new loan limits would be in place.

CBO estimates that enacting subtitle E would reduce direct spending outlays by $6.2 billion over the 2025‑2034 period.

Risk-Sharing Payments. The legislation would require some institutions to make annual payments to the Department of Education as a condition for participating in the student loan program. Those payments would be recorded as offsetting receipts—that is, as reductions in direct spending. Payments would be based on a formula that considers the amount of loan payments in a cohort that are waived, matched, or forgiven in the new IDR plan or that borrowers fail to make in a timely manner; the total cost of a program for borrowers who complete that program; and borrowers’ expected future earnings.

CBO calculated risk-sharing payments based on our estimates of repayments under the legislation’s proposed Repayment Assistance Plan, information from the College Scorecard database (which gathers data on institutional costs, graduation and employment rates, and student loan borrowing), and the Integrated Postsecondary Education Data System. CBO also analyzed delinquency and default rates using data from NSLDS.

CBO anticipates that the first risk-sharing payments would be made by institutions late in fiscal year 2028, after the Department of Education issues new rules, and that the department would apply the requirements prospectively on loans made beginning in the 2027-2028 academic year. We expect that initially, risk-sharing payments would be small but would increase as more borrowers entered repayment on loans originated after June 30, 2027. CBO estimates that by 2034, risk-sharing payments would be $1.3 billion and would continue to increase after that year.

CBO estimates that enacting this provision would reduce outlays by $5.3 billion over the 2025-2034 period.

Reduction in Institutional Participation in Federal Student Aid Programs.Given the high cost of risk-sharing payments to institutions and the considerable uncertainty about that cost over the lifetime of any given loan, CBO expects that some institutions would take action to avoid making those payments: Some would choose not to participate in the federal student loan program, others would close certain institutional programs, and still others would close altogether. Based on CBO’s analysis of calculated risk-sharing payments, information from associations of schools and from people with knowledge of postsecondary financial aid programs, we estimate that enacting this provision would reduce projected loan volume, after all other policies in the legislation, by roughly 20 percent.

By 2028, CBO estimates that, after incorporating all of the provisions of the legislation, 1 dollar of student loan volume would cost the federal government, on average, about 3 cents. On that basis, CBO estimates that the reduction in loan volume would reduce outlays by $3.6 billion over the 2025‑2034 period.

CBO expects that decisions by institutions to avoid risk-sharing payments also would affect federal spending for the Pell grant mandatory add-on. In general, institutions that leave the federal student loan program would be expected to continue to participate in the Pell Grant Program. However, based on the literature included as part of the Department of Education’s rulemaking on gainful employment and financial transparency (see “Subtitle F, Regulatory Relief” below for more information), CBO expects that some students enrolled in programs or schools that close as a result of the legislation’s risk-sharing requirements would not reenroll in other programs. Thus, CBO estimates that enacting the risk-sharing provision would reduce direct spending outlays for the Pell grant mandatory add-on by $397 million over the 2025‑2034 period.

PROMISE Grants. The legislation would institute PROMISE grants, funded by institutional risk-sharing payments. Institutions would be required to meet certain requirements to be eligible for the grants, including guaranteeing a maximum total price charged to a student for a given program.

Under the grant formula, an eligible institution could receive up to $5,000 for each student receiving federal financial aid each year, depending on the availability of funds. Along with additional criteria, the formula compares students’ earnings after completion of a program with the cost of tuition.

CBO expects that PROMISE grants, which would be classified as direct spending, would be awarded as funds become available. Using information from the College Scorecard database and the Integrated Postsecondary Education Data System and considering estimated risk-sharing payments, CBO estimates that PROMISE grants would increase outlays by $3.0 billion over the 2025-2034 period.

Return of Title IV Funds for Student Loans and the Pell Grant Mandatory Add-On. The legislation would allow the Department of Education to reallocate federal student aid that is returned to the government under title IV of the Higher Education Act to fund PROMISE grants. CBO estimates that enacting this provision would increase direct spending for student loans because it would change the underlying cost of those loans. Funding PROMISE grants with returned funds from Pell grants also would increase direct spending because the mandatory add-on for Pell grants is not subject to appropriation. CBO estimates that using those returned funds for PROMISE grants would increase direct spending outlays by $111 million over the 2025-2034 period.

Subtitle F. Regulatory Relief

The legislation would repeal several rules and regulations affecting institutional eligibility for federal student aid, and the terms under which a student loan borrower could receive forgiveness.

CBO estimates that enacting subtitle F would reduce direct spending outlays by $9.0 billion over the 2025‑2034 period.

Repeal the 90/10 Rule. The legislation would repeal the requirement that for-profit institutions receive no more than 90 percent of their revenue from federal financial aid, including veterans’ education benefits. CBO anticipates that repealing the rule would allow schools whose revenue comes primarily from federal sources to expand enrollment and that the schools closest to the 90 percent threshold would be the most likely to do so. CBO estimates that enacting this provision would increase direct spending outlays by about $1.6 billion over the 2025-2034 period: $1.3 billion for increased student loan volume, $297 million for the Pell grant mandatory add-on, and $25 million for veterans’ education benefits.

Repeal the Gainful Employment Rule. The legislation strikes all references to “gainful employment” from the Higher Education Act. CBO expects that the Department of Education would implement that change by repealing the regulations related to gainful employment. Those regulations establish a debt-to-earnings ratio and an earnings premium test that for-profit institutions, and certain non-degree-granting programs at two-year institutions, would need to meet for the programs to remain eligible for federal student aid. Based on a literature review, CBO estimates that repealing the rules would increase both student borrowing and the number of Pell grant recipients by about 2 percent. On that basis, CBO estimates that enacting the provision would increase direct spending outlays by about $6 billion over the 2025‑2034 period: $5.1 billion for student loans and $918 million for the Pell grant mandatory add-on.

Repeal the Closed-Schools Discharges Rule. The legislation would repeal a rule that established an automatic process for discharging loans made to borrowers who attended schools that closed, thus increasing the likelihood of loan discharge for those borrowers. Using information from the Department of Education, CBO estimates that repealing the rule would reduce outlays by $5.2 billion over the 2025-2034 period.

Repeal the Borrower Defense to Repayment Rule. The legislation would repeal a rule that made it easier for borrowers’ loans to be discharged as a result of a school’s misconduct, including, for example, misrepresentation of student outcomes. Based on an analysis of loan volume at schools that were or are under investigation for issues that could fall under that rule, and using data from the Department of Education, CBO estimates that enacting the change would reduce outlays by $11.5 billion over the 2025-2034 period.

Subtitle G. Limitation on Authority

Subtitle G would limit the authority of the Department of Education to issue regulations that would increase the cost of federal student loans or that would have economically significant effects (that is, that would have an annual effect on the economy of $100 million or more or that would adversely affect the economy in a material way). CBO’s baseline includes costs that reflect the possibility of future administrative actions that would increase the cost to the government of federal student loans.

CBO estimates that enacting subtitle G would decrease outlays for student loans by $31.8 billion over the 2025‑2034 period.

Interactions Among Provisions

Most provisions discussed in this document were estimated relative to current law. The effects on direct spending of simultaneously enacting all of the provisions in the legislation would differ from the sum of effects from enacting each provision separately relative to CBO’s baseline.

The estimates for provisions to which that does not apply concern the risk-sharing payments and PROMISE grants, which were estimated relative to CBO’s baseline as adjusted to include the effects of all other policies in the legislation. Those estimates contain some interactions not shown in the “Interactions” row in Chief, Finance, Housing, and Education Cost Estimates Unit

Kathleen FitzGerald
Chief, Public and Private Mandates Unit

Christina Hawley Anthony
Deputy Director of Budget Analysis

H. Samuel Papenfuss
Deputy Director of Budget Analysis

Chad Chirico
Director of Budget Analysis

Phillip L. Swagel

Director, Congressional Budget Office

[Table 2 begins on the next page.]

Undergraduate Loan Limits

Budget Authority

1,400

2,060

2,490

2,710

2,700

2,710

2,780

8,660

22,260

Estimated Outlays

830

1,640

2,100

2,360

2,430

2,420

2,460

6,930

19,080

Set Annual Loan Limits by Enrollment Intensity

Budget Authority

-1,140

-1,860

-2,130

-2,120

-2,210

-2,140

-2,190

-2,230

-2,070

-7,250

-18,090

Estimated Outlays

-680

-1,430

-1,800

-1,870

-1,920

-1,910

-1,950

-1,880

-5,780

-15,350

Subtotal, Subtitle B

Budget Authority

-2,730

-5,000

-5,970

-7,290

-7,620

-7,830

-7,970

-8,200

-7,870

-20,990

-60,480

Estimated Outlays

-1,630

-3,720

-4,930

-6,020

-6,650

-6,890

-7,020

-7,210

-7,110

-16,300

-51,180

Subtitle C. Loan Repayment

Sec. 30021, Loan Repayment

Budget Authority

-175,670

-14,380

-15,010

-15,020

-15,240

-15,440

-15,610

-15,740

-15,910

-16,080

-235,320

-314,100

Estimated Outlays

-174,260

-12,480

-13,020

-13,240

-13,350

-13,560

-13,740

-13,900

-13,960

-14,130

-226,350

-295,640

Sec. 30022, Deferment; Forbearance and

Sec. 30024, Public Service Loan Forgiveness

Eliminate Unemployment and Economic Hardship Deferments

Budget Authority

180

400

Estimated Outlays

140

340

Doctor and Dentist Residency Considerations

Budget Authority

-30

-80

-100

-470

Estimated Outlays

-10

-60

-90

-100

-430

Sec. 30023, Loan Rehabilitation

Budget Authority

135

Estimated Outlays

130

Sec. 30025, Student Loan Servicing

Budget Authority

500

1,000

Estimated Outlays

300

450

200

1,000

Subtotal, Subtitle C

Budget Authority

-175,100

-13,755

-14,935

-14,995

-15,265

-15,485

-15,655

-15,785

-15,945

-16,115

-234,050

-313,035

Estimated Outlays

-174,140

-12,090

-12,495

-13,005

-13,365

-13,595

-13,785

-13,945

-14,005

-14,175

-225,095

-294,600

(Continued)

Table 2. Estimated Changes in Direct Spending Under Reconciliation Recommendations Title III, House Committee on Education and Workforce, as Ordered Reported on April 29, 2025 (Continued)
	By Fiscal Year, Millions of Dollars
	2025	2026	2027	2028	2029	2030	2031	2032	2033	2034	2025-2029	2025-2034
	Increases or Decreases (-) in Direct Spending
Subtitle D. Pell Grants
Sec. 30031, Eligibility
Foreign Income and Federal Pell Grant Eligibility
Budget Authority	0	-8	-8	-8	-8	-8	-8	-8	-8	-9	-32	-73
Estimated Outlays	0	-2	-8	-8	-8	-8	-8	-8	-8	-8	-26	-66
Change the Definition of Full-Time Enrollment
Budget Authority	0	-830	-840	-848	-856	-874	-882	-891	-898	-902	-3,374	-7,821
Estimated Outlays	0	-216	-824	-842	-850	-861	-876	-884	-893	-899	-2,732	-7,145
Eliminate Eligibility for Students With a High SAI
Budget Authority	0	-9	-9	-9	-9	-10	-10	-10	-10	-10	-36	-86
Estimated Outlays	0	-2	-9	-9	-9	-9	-10	-10	-10	-10	-29	-78
Eliminate Eligibility for Students Enrolled Less Than Half Time
Budget Authority	0	-21	-43	-65	-87	-109	-110	-111	-112	-113	-216	-771
Estimated Outlays	0	-6	-27	-48	-71	-93	-109	-110	-111	-112	-152	-687
Sec. 30032, Workforce Pell Grants
Budget Authority	0	18	21	36	41	42	42	42	43	43	116	328
Estimated Outlays	0	5	19	25	38	41	42	42	43	43	87	298
Sec. 30033, Pell Shortfall
Budget Authority	0	3,181	4,822	2,507	0	0	0	0	0	0	10,510	10,510
Estimated Outlays	0	827	3,576	4,204	1,878	25	0	0	0	0	10,485	10,510
Subtotal, Subtitle D
Budget Authority	0	2,331	3,943	1,613	-919	-959	-968	-978	-985	-991	6,968	2,087
Estimated Outlays	0	606	2,727	3,322	978	-905	-961	-970	-979	-986	7,633	2,832
											(Continued)

Table 2. Estimated Changes in Direct Spending Under Reconciliation Recommendations Title III, House Committee on Education and Workforce, as Ordered Reported on April 29, 2025 (Continued)
	By Fiscal Year, Millions of Dollars
	2025	2026	2027	2028	2029	2030	2031	2032	2033	2034	2025-2029	2025-2034
	Increases or Decreases (-) in Direct Spending
Subtitle E. Accountability
Sec. 30041, Agreements With Institutions
Risk-Sharing Payments
Budget Authority	0	0	0	-10	-160	-580	-890	-1,070	-1,220	-1,340	-170	-5,270
Estimated Outlays	0	0	0	-10	-160	-580	-890	-1,070	-1,220	-1,340	-170	-5,270
Institutional Participation
Student Loans
Budget Authority	0	0	-50	-160	-350	-520	-690	-700	-710	-710	-560	-3,890
Estimated Outlays	0	0	-30	-120	-280	-460	-630	-700	-710	-710	-430	-3,640
Pell Grants
Budget Authority	0	0	-8	-21	-41	-61	-82	-82	-82	-82	-70	-459
Estimated Outlays	0	0	-2	-11	-26	-46	-66	-82	-82	-82	-39	-397
Sec. 30042, Campus-Based Aid Programs
PROMISE Grants
Budget Authority	0	0	0	10	160	580	890	1,070	1,220	1,340	170	5,270
Estimated Outlays	0	0	0	0	0	50	270	650	930	1,110	0	3,010
Return of Title IV Funds
Budget Authority	0	0	0	14	20	20	20	20	20	20	34	134
Estimated Outlays	0	0	0	0	0	31	20	20	20	20	0	111
Subtotal, Subtitle E
Budget Authority	0	0	-58	-167	-371	-561	-752	-762	-772	-772	-596	-4,215
Estimated Outlays	0	0	-32	-141	-466	-1,005	-1,296	-1,182	-1,062	-1,002	-639	-6,186
Subtitle F. Regulatory Relief
Sec. 30051, Regulatory Relief
Repeal the 90/10 Rule
Student Loans
Budget Authority	0	40	80	130	170	220	220	220	230	230	420	1,540
Estimated Outlays	0	30	70	100	140	180	200	200	200	200	340	1,320
Pell Grants
Budget Authority	0	17	25	34	42	42	42	42	43	43	118	330
Estimated Outlays	0	4	19	27	36	42	42	42	42	43	86	297
											(Continued)

Table 2. Estimated Changes in Direct Spending Under Reconciliation Recommendations Title III, House Committee on Education and Workforce, as Ordered Reported on April 29, 2025 (Continued)
	By Fiscal Year, Millions of Dollars
	2025	2026	2027	2028	2029	2030	2031	2032	2033	2034	2025-2029	2025-2034
	Increases or Decreases (-) in Direct Spending
Veterans’ Education Benefits
Budget Authority	0	2	2	3	3	3	3	3	3	3	10	25
Estimated Outlays	0	2	2	3	3	3	3	3	3	3	10	25
Repeal the Gainful Employment Rule
Student Loans
Budget Authority	0	160	330	490	670	840	850	860	870	870	1,650	5,940
Estimated Outlays	0	100	250	400	560	710	760	770	780	780	1,310	5,110
Pell Grants
Budget Authority	0	111	111	111	111	111	112	112	112	112	444	1,003
Estimated Outlays	0	29	109	111	111	111	111	112	112	112	360	918
Repeal the Closed-School Discharge Rule
Budget Authority	-1,450	-380	-400	-430	-460	-490	-520	-550	-580	-620	-3,120	-5,880
Estimated Outlays	-1,410	-330	-350	-370	-390	-420	-450	-470	-500	-530	-2,850	-5,220
Repeal the Borrower Defense to Repayment Rule
Budget Authority	-2,180	-1,070	-1,100	-1,130	-1,160	-1,190	-1,220	-1,250	-1,280	-1,320	-6,640	-12,900
Estimated Outlays	-2,090	-930	-960	-990	-1,010	-1,040	-1,070	-1,100	-1,120	-1,150	-5,980	-11,460
Subtotal, Subtitle F
Budget Authority	-3,630	-1,120	-952	-792	-624	-464	-513	-563	-602	-682	-7,118	-9,942
Estimated Outlays	-3,500	-1,095	-860	-719	-550	-414	-404	-443	-483	-542	-6,724	-9,010
Subtitle G. Limitation on Authority
Sec. 30061, Limitation on the Authority of the Secretary to Propose or Issue Regulations and Executive Actions
Budget Authority	-20,300	-1,300	-1,400	-1,400	-1,400	-1,500	-1,500	-1,500	-1,600	-1,600	-25,800	-33,500
Estimated Outlays	-20,200	-1,200	-1,200	-1,200	-1,300	-1,300	-1,300	-1,300	-1,400	-1,400	-25,100	-31,800
											(Continued)

Table 2. Estimated Changes in Direct Spending Under Reconciliation Recommendations Title III, House Committee on Education and Workforce, as Ordered Reported on April 29, 2025 (Continued)
	By Fiscal Year, Millions of Dollars
	2025	2026	2027	2028	2029	2030	2031	2032	2033	2034	2025-2029	2025-2034
	Increases or Decreases (-) in Direct Spending
Interactions
Student Loans
Budget Authority	-100	2,110	4,230	5,270	6,520	6,600	6,800	6,900	7,020	6,810	18,030	52,160
Estimated Outlays	-100	1,190	3,090	4,320	5,380	5,860	6,020	6,140	6,250	6,160	13,880	44,310
Pell Grants
Budget Authority	0	-182	-245	-310	-375	-437	-440	-443	-447	-448	-1,112	-3,327
Estimated Outlays	0	-47	-196	-261	-326	-391	-437	-441	-444	-447	-830	-2,990
Total Interactions
Budget Authority	-100	1,928	3,985	4,960	6,145	6,163	6,360	6,457	6,573	6,362	16,918	48,833
Estimated Outlays	-100	1,143	2,894	4,059	5,054	5,469	5,583	5,699	5,806	5,713	13,050	41,320
Total Changes
Budget Authority	-199,130	-14,653	-14,452	-16,791	-19,779	-20,491	-20,928	-21,186	-21,630	-21,767	-264,805	-370,807
Estimated Outlays	-197,940	-14,271	-12,711	-12,654	-15,719	-18,460	-19,123	-19,241	-19,427	-19,596	-253,295	-349,142
	Net Decrease in the Deficit From Changes in Direct Spending
Effect on the Deficit	-197,940	-14,271	-12,711	-12,654	-15,719	-18,460	-19,123	-19,241	-19,427	-19,596	-253,295	-349,142

MIL OSI USA News –

May 16, 2025

MIL-OSI: Mount Logan Capital Inc. Announces First Quarter 2025 Financial Results

Source: GlobeNewswire (MIL-OSI)

Declared quarterly distribution of C$0.02 per common share in the second quarter of 2025, the twenty-third consecutive quarter of a shareholder distribution

Asset management segment generated $8.1 million in Fee Related Earnings (“FRE”) for the trailing twelve months ended March 31, 2025, a 25% increase over the prior year period

Generated $7.8 million of Spread Related Earnings (“SRE”) for the trailing twelve months ended March 31, 2025, which reflects 1.3% of spread earnings on Ability’s assets

During January 2025, the Company announced it entered into a definitive agreement to combine with 180 Degree Capital Corp. (Nasdaq: TURN) in an all-stock transaction. The surviving entity is expected to operate as Mount Logan Capital Inc. (“New Mount Logan”) and to be listed on Nasdaq under the symbol MLCI

In January 2025, Mount Logan completed its previously announced investment in Runway Growth Capital LLC, a $1.3 billion private credit asset manager, alongside BC Partners Credit

All amounts are stated in United States dollars, unless otherwise indicated

TORONTO, May 15, 2025 (GLOBE NEWSWIRE) — Mount Logan Capital Inc. (Cboe Canada: MLC) (“Mount Logan” or the “Company”) announced today its financial results for the three months ended March 31, 2025.

First Quarter 2025 Highlights

FRE for the asset management segment was $2.2 million for the quarter, an increase of 37% compared to the first quarter of 2024, due to improved economics on the Company’s service agreement with Sierra Crest Investment Management over an interval fund, and the decrease in general, administrative and other expenses from the expiry of transition services agreements and other one-time expenses incurred in the first quarter of 2024. FRE for the trailing twelve months was $8.1 million, an increase of 25% from the comparative trailing twelve-month period, primarily attributable to increases in management fees.
Total revenue for the asset management segment of the Company was $3.2 million, a decrease of $0.8 million, or 21%, as compared to the first quarter of 2024. The decrease was driven by a reduction in and normalization of incentive fees associated with a single managed fund in winddown, and an increase in net loss from investment activities, both of which we view as transitory elements. First quarter asset management revenues also exclude $1.2 million of management fees associated with Mount Logan’s management of the assets of Ability Insurance Company (“Ability”), a wholly-owned subsidiary of the Company. Normalized Ability management fees for the first quarter of 2025 were $1.6 million, excluding one-time expenses, which are not expected to continue throughout the remainder of the year.
Total net investment income for the insurance segment was $19.0 million for the three months ended March 31, 2025, a decrease of $2.8 million, or 13%, as compared to the first quarter of 2024, owing to interest expense related to the interest rate swap, decrease in bond yields and decrease in the long term investments portfolio. Excluding the funds withheld assets under reinsurance contracts and Modco, the insurance segment’s net investment income was $14.5 million, an increase of $0.4 million, or 3%, as compared to the first quarter of 2024.
Achieved 6.9%¹yield on the insurance investment portfolio for the quarter ended March 31, 2025. This was impacted by higher investment expense on funds withheld assets under the Modco arrangement. Excluding the funds withheld under reinsurance contracts and Modco, the yield was 8.8%.
Ability’s total assets managed by Mount Logan increased to $645.7 million as of March 31, 2025, an increase of $28.9 million from first quarter 2024 of $616.8 million. As of March 31, 2025, the insurance segment included $1.02 billion in total investment assets, down $23.0 million, or 2%, from the first quarter of 2024 investment assets of $1.04 billion. During the quarter, Mount Logan began managing a portion of Ability’s modified coinsurance assets with Vista.
Book value of the insurance segment as of March 31, 2025 was $85.9 million, an increase of $3.3 million as compared to $82.6 million for the first quarter of 2024.
SRE for the insurance segment was $7.8 million for the trailing twelve months ended March 31, 2025, down $1.7 million from the trailing twelve months ended March 31, 2024 of $9.5 million, primarily driven by an increase in cost of funds, partially offset by increased net investment income and lower operating expenses. The increase in cost of funds was primarily driven by unfavorable in-force update to the Long Term Care business (Guardian block) of $1.8 million for the trailing twelve months ended March 31, 2025, while there was a favorable in-force update to the LTC business (Medico block) observed of $4.8 million for the twelve months ended March 31, 2024.

Subsequent Events

Declared a shareholder distribution in the amount of C$0.02 per common share for the quarter ended March 31, 2025, payable on June 2, 2025 to shareholders of record at the close of business on May 27, 2025. This cash dividend marks the twenty-third consecutive quarter of the Company issuing a C$0.02 distribution to its shareholders. This dividend is designated by the Company as an eligible dividend for the purpose of the Income Tax Act (Canada) and any similar provincial or territorial legislation. An enhanced dividend tax credit applies to eligible dividends paid to Canadian residents.
A preliminary joint proxy statement/prospectus was filed with the United States Securities and Exchange Commission (the “SEC”) for the previously announced merger of Mount Logan with 180 Degree Capital Corp. (Nasdaq: TURN) (“180 Degree Capital”), in an all-stock transaction (the “Business Combination”). The surviving entity is expected to be a Delaware corporation operating as New Mount Logan listed on Nasdaq under the symbol “MLCI”. As required under U.S. federal securities laws and related rules and regulations, the joint proxy statement/prospectus included Mount Logan’s audited financial statements for the years ended December 31, 2024 and 2023 prepared in accordance with U.S. Generally Accepted Accounting Principles. In connection with the Business Combination, shareholders of Mount Logan will receive proportionate ownership of New Mount Logan determined by reference to Mount Logan’s transaction equity value at signing, subject to certain pre-closing adjustments, relative to 180 Degree Capital’s Net Asset Value (“NAV”) at closing. Shareholders holding approximately 26% of the outstanding shares of Mount Logan and approximately 20% of the outstanding shares of 180 Degree Capital signed voting agreements supporting the Business Combination, and an additional 8% of Mount Logan and 7% of 180 Degree Capital shareholders, respectively, have provided written non-binding indications of support for the Business Combination.
Portman Ridge Finance Corporation (Nasdaq: PTMN) and Logan Ridge Finance Corporation (Nasdaq: LRFC) merger remains subject to the receipt of certain shareholder approvals and the satisfaction of other closing conditions. Mount Logan currently earns management fees from LRFC and has a minority stake in PTMN’s manager, Sierra Crest Investment Management.

Management Commentary

Ted Goldthorpe, Chief Executive Officer and Chairman of Mount Logan stated, “We are pleased to report our first quarter 2025 results, reflecting the continued earnings power of our asset management and insurance platforms. While AUM growth slowed in Q1 2025, consistent with broader macro challenges, we demonstrated our ability to generate strong, positive Fee Related Earnings on the asset management segment, and Spread Related Earnings in the insurance platform, providing a solid foundation for momentum in 2025. Our managed funds demonstrated performance resilience and low volatility as compared to the public credit and equity markets, which we view as a testament to our focus on private credit assets. Looking ahead, we see ample opportunities to drive AUM growth across our core managed vehicles, enact operational improvements and efficiencies, while also advancing strategic priorities to scale the business through reinvestment across our segments and accretive acquisition opportunities, which includes our recently announced transactions with 180 Degree Capital and Runway, which we believe will be significant catalysts for long-term growth and investment into our business.”

Selected Financial Highlights

Total Capital of the Company was $144.9 million as at March 31, 2025, a decrease of $5.4 million as compared to December 31, 2024. Total capital consists of debt obligations and total shareholders’ equity.
Consolidated net income (loss) before taxes was $(13.7) million for the first quarter of 2025, a decrease of $26.8 million from $13.1 million in the first quarter of 2024. The decrease was primarily attributable to the increase in net insurance finance expenses, decrease in net investment income and increase in general, administrative and other expenses under the insurance segment, as well as an increase in corporate transaction costs under the asset management segment related to the Business Combination when compared to the first quarter of 2024.
Basic Earnings (loss) per share (“EPS”) was ($0.48) for the first quarter of 2025, a decrease of $0.99 from $0.51 for the first quarter of 2024.
Adjusted basic EPS was ($0.29) for the first quarter of 2025, a decrease of $0.83 from $0.54 for the first quarter of 2024.

Results of Operations by Segment

($ in Thousands)	Three Months Ended
	March 31, 2025			December 31, 2024			March 31, 2024
Reported Results
*Asset management*
Revenue	$	3,192		$	4,442		$	4,030
Expenses		12,578			13,440			7,615
Net income (loss) – asset management		(9,386	)		(8,998	)		(3,585	)
*Insurance*
Revenue ⁽¹⁾		18,982			(622	)		17,555
Expenses		23,280			(16,142	)		822
Net income (loss) – insurance		(4,298	)		15,520			16,733
Income before income taxes		(13,684	)		6,522			13,148
Provision for income taxes		361			37			(56	)
Net income (loss)	$	(13,323	)	$	6,559		$	13,092
Basic EPS	$	(0.48	)	$	0.25		$	0.51
Diluted EPS	$	(0.48	)	$	0.23		$	0.50
Adjusting Items
*Asset management*
Transaction costs ⁽²⁾		(4,545	)		(1,921	)		(251	)
Acquisition integration costs ⁽³⁾		—			—			(250	)
Non-cash items ⁽⁴⁾		(737	)		(2,940	)		(346	)
Impact of adjusting items on expenses		(5,282	)		(4,861	)		(847	)
Adjusted Results
*Asset management*
Revenue	$	3,192		$	4,442		$	4,030
Expenses		7,296			8,579			6,768
Net income (loss) – asset management		(4,104	)		(4,137	)		(2,738	)
Income before income taxes		(8,402	)		11,383			13,995
Provision for income taxes		361			37			(56	)
Net income (loss)	$	(8,041	)	$	11,420		$	13,939
Basic EPS	$	(0.29	)	$	0.44		$	0.54
Diluted EPS	$	(0.29	)	$	0.40		$	0.54

^{(1)    Insurance Revenue line item is presented net of insurance service expenses and net expenses from reinsurance contracts held.}
^{(2)    Transaction costs are related to business acquisitions and strategic initiatives transacted by the Company.}
^{(3)    Acquisition integration costs are consulting and administration services fees related to integrating a business into the Company. Acquisition integration costs are recorded in general, administrative and other expenses.}
^{(4)    Non-cash items include amortization and impairment of acquisition-related intangible assets and impairment of goodwill, if any.}

Asset Management

Total Revenue – Asset Management

($ in Thousands)

	Three Months Ended
	March 31, 2025			March 31, 2024
Management and incentive fee	$	2,928		$	3,494
Equity investment earning		282			224
Interest income		268			271
Dividend income		38			112
Other Income		299			—
Net gains (losses) from investment activities		(623	)		(71	)
Total revenue — asset management	$	3,192		$	4,030

Fee Related Earnings (“FRE”)

FRE is a non-IFRS financial measure used to assess the asset management segment’s generation of profits from revenues that are measured and received on a recurring basis and are not dependent on future realization events. The Company calculates FRE, and reconciles FRE to net income from its asset management activities, as follows:

($ in Thousands)

	Three Months Ended
	March 31, 2025			March 31, 2024
Net income (loss) and comprehensive income (loss)	$	(13,323	)	$	13,092

Adjustment to net income (loss) and comprehensive income (loss):
Total revenue – insurance ⁽¹⁾		(18,982	)		(17,555	)
Total expenses – insurance		23,280			822
Net income – asset management ⁽²⁾		(9,025	)		(3,641	)
Adjustments to non-fee generating asset management business and other recurring revenue stream:
Management fee from Ability		1,566			1,429
Interest income		—			—
Dividend income		(39	)		(112	)
Net gains (losses) from investment activities⁽³⁾		623			71
Administration and servicing fees		504			366
Transaction costs		4,545			251
Amortization and impairment of intangible assets		737			346
Interest and other credit facility expenses		1,857			1,702
General, administrative and other		1,479			1,233
Fee Related Earnings	$	2,247		$	1,645

^{(1) Includes add-back of management fees paid to ML Management.}

^{(2) Represents net income for asset management, as presented in the interim Consolidated Statement of Comprehensive Income (Loss).}

^{(3) Includes unrealized gains or losses on the debt warrants.}

($ in Thousands)	Trailing Twelve Months Ended
	March 31, 2025			March 31, 2024
Net income (loss) and comprehensive income (loss)	$	(20,826	)	$	26,088

Adjustment to net income (loss) and comprehensive income (loss):
Total revenue – insurance ⁽¹⁾		(65,582	)		(76,512	)
Total expenses – insurance		60,979			35,450
Net income – asset management ⁽²⁾		(25,429	)		(14,974	)
Adjustments to non-fee generating asset management business and other recurring revenue stream:
Management fee from Ability		6,162			4,853
Interest income		(1	)		—
Dividend income		(425	)		(640	)
Net gains (losses) from investment activities⁽³⁾		1,995			157
Administration and servicing fees		1,743			1,228
Transaction costs		6,468			3,814
Amortization and impairment of intangible assets		4,369			1,178
Interest and other credit facility expenses		8,090			6,425
General, administrative and other		5,177			4,481
Fee Related Earnings	$	8,149		$	6,522

^{(1) Includes add-back of management fees paid to ML Management.}

^{(2) Represents net income for asset management, as presented across the interim Consolidated Statements of Comprehensive Income (Loss).}

^{(3) Includes unrealized gains or losses on the debt warrants.}

Insurance

Total Revenue – Insurance

($ in Thousands)

	Three Months Ended
	March 31, 2025			March 31, 2024
Insurance service result	$	(2,197	)	$	(3,092	)
Net investment income		19,004			21,804
Net gains (losses) from investment activities		6,958			2,666
Realized and unrealized gains (losses) on embedded derivative — funds withheld		(4,783	)		(3,829	)
Other income		—			6
Total revenue — net of insurance services expenses and net expenses from reinsurance	$	18,982		$	17,555

Spread Related Earnings (“SRE”)

The Company uses SRE to assess the performance of the insurance segment, excluding the impact of certain market volatility and other one-time, non-core components of insurance segment income (loss). Excluded items under SRE are investment gains (losses), effects of discount rates and other financial variables on the value of insurance obligations (which is a component of “net insurance finance income/(expense)”), other income and certain general, administrative & other expenses. The Company believes this measure is useful to securityholders as it provides additional insight into the underlying economics of the insurance segment, as further discussed below.

For the insurance segment, SRE equals the sum of (i) the net investment income on the insurance segment’s net invested assets (excluding investment income earned on funds held under reinsurance contracts) less (ii) cost of funds (as described below) and (iii) certain operating expenses.

Cost of funds includes the impact of interest accretion on insurance and investment contract liabilities and amortization of losses recognized for new insurance contracts that are deemed onerous at initial recognition. It also includes experience adjustments which represents the difference between actual and expected cashflows and includes the impact of certain changes to non-financial assumptions.

The Company reconciles SRE to net income (loss) before tax from its insurance segment activities, as follows:

	Three Months Ended
	Q1-2025			Q4-2024			Q3-2024			Q2-2024			Q1-2024			Q4-2023			Q3-2023			Q2-2023
Net income (loss) and comprehensive income (loss) before tax	$	(13,639	)	$	6,522		$	(17,378	)	$	3,847		$	13,148		$	(1,946	)	$	16,243		$	(903	)

Adjustment to net income (loss) and comprehensive income (loss):
Total revenue – asset management ⁽¹⁾		(3,192	)		(4,442	)		(3,826	)		(3,394	)		(4,030	)		(3,723	)		(3,186	)		(2,996	)
Total expenses – asset management		12,533			13,440			7,481			6,651			7,615			7,839			6,868			6,133
Net income – insurance ⁽²⁾		(4,298	)		15,520			(13,723	)		7,104			16,733			2,170			19,925			2,234
Adjustments to Insurance segment business:
Management fees to ML Management		(1,167	)		(1,167	)		(1,501	)		(1,529	)		(1,429	)		(1,345	)		(1,110	)		(969	)
Net (gains) losses from investment activities⁽³⁾		(5,718	)		17,681			(13,267	)		887			(2,995	)		(10,116	)		(2,113	)		(1,454	)
Other Income⁽⁴⁾		—			—			—			—			—			(7,353	)		—			—
Net insurance finance (income)/expense⁽⁵⁾		12,506			(28,702	)		30,940			(5,442	)		(11,769	)		14,399			(17,684	)		(5,275	)
Loss on onerous contracts⁽⁶⁾		(1,548	)		(545	)		(822	)		945			6,884			286			2,451			4,214
General, administrative and other⁽⁷⁾		600			338			239			464			447			502			1,289			1,546
Spread Related Earnings	$	375		$	3,125		$	1,866		$	2,429		$	7,871		$	(1,457	)	$	2,758		$	296

^{(1) Includes add-back of management fees paid by Ability to ML Management.}

^{(2) Represents net income before tax for the insurance segment, as presented in the annual Consolidated Statement of Comprehensive Income (Loss).}

^{(3) Excludes net (gains) losses from investment activities on assets retained by the Company under funds withheld arrangement with Front Street Re and Vista.}

^{(4) Represents non-operating income.}

^{(5) Includes the impact of changes in interest rates and other financials assumptions and excludes interest accretion on insurance contract liabilities and reinsurance contract assets.}

^{(6) Represents the unamortized portion of future interest accretion and ceded commissions paid at the time of issue of new MYGA insurance contracts. Future interest accretion and ceded commissions are amortized over the average duration of MYGA contracts reinsured which aligns with the recognition of insurance service revenue. Loss on onerous contracts are part of Insurance service expense.}

^{(7) Represents certain costs incurred by the insurance segment for purposes of IFRS reporting but not the day to day operations of the insurance company.}

The following table presents SRE, the performance measure of the insurance segment:

($ in Thousands)

	Trailing Twelve Months Ended
	March 31, 2025			March 31, 2024
Fixed Income and other investment income, net⁽¹⁾	$	54,342		$	50,502
Cost of funds		(38,352	)		(32,318	)
Net Investment spread		15,990			18,184
Other operating expenses		(8,195	)		(8,716	)
Spread Related Earnings	$	7,795		$	9,468
SRE % of Average Net Investments		1.3	%		1.7	%

^{(1) Excludes net investment income from investment activities on assets retained by the Company under funds withheld arrangement with Front Street Re and Vista Life and Casualty Reinsurance Company (“Vista”).}

Spread related earnings (“SRE”) was $7.8 million for the trailing twelve months ended March 31, 2025 compared with $9.5 million for the trailing twelve months ended March 31, 2024, a decrease of $1.7 million. SRE decreased year over year due to higher cost of funds, partially offset by increased investment income and lower other operating expenses. Cost of funds increased primarily due to unfavorable impact of $1.8 million as a result of in-force update to LTC business (Guardian block) whereas the trailing twelve months ended March 31, 2024 had a favorable in-force impact of $4.8 million to LTC business (Medico block). Investment income increased primarily due to an increase in total insurance investment assets as a result of new multi-year guaranteed annuity (“MYGA”) business and improvement in yield across the investment portfolio. Other operating expenses decreased as a result of efforts to reduce overall operating cost.

SRE as a percentage of average net invested assets was 1.3% for the trailing twelve months ended March 31, 2025 compared with 1.7% for the trailing twelve months ended March 31, 2024.

Liquidity and Capital Resources

As of March 31, 2025, the asset management segment had $77.8 million (par value) of borrowings outstanding, of which $33.8 million had a fixed rate and $44.0 million had a floating rate. As of March 31, 2025, the insurance segment had $17.3 million (par value) of borrowings outstanding, of which $14.3 million had a fixed rate and $3.0 million had a floating rate. Liquid assets, including high-quality assets that are marketable, can be pledged as security for borrowings, and can be converted to cash in a time frame that meets liquidity and funding requirements. As of March 31, 2025 and December 31, 2024, the total liquid assets of the Company were as follows:

($ in Thousands)

As at	March 31, 2025		December 31, 2024
Cash and cash equivalents	$	125,808	$	85,988
Restricted cash posted as collateral		12,526		15,716
Investments		609,514		639,932
Management fee receivable		2,927		3,268
Receivable for investments sold		23		17,045
Accrued interest and dividend receivable		20,959		20,489
Total liquid assets	$	771,757	$	782,438

The Company defines working capital as the sum of cash, restricted cash, investments that mature within one year of the reporting date, management fees receivable, receivables for investments sold, accrued interest and dividend receivables, and premium receivables, less the sum of debt obligations, payables for investments purchased, amounts due to affiliates, reinsurance liabilities, and other liabilities that are payable within one year of the reporting date.

As at March 31, 2025, the Company had working capital of $218.8 million, reflecting current assets of $241.7 million, offset by current liabilities of $22.9 million, as compared with working capital of $231.2 million as at December 31, 2024, reflecting current assets of $245.3 million, offset by current liabilities of $14.1 million. The decrease in working capital was primarily attributable to the decrease in cash within the asset management business combined with the increase in accrued expenses across asset management and insurance.

Interest Rate Risk

The Company has obligations to policyholders and other debt obligations that expose it to interest rate risk. The Company also owns debt assets and interest rate swaps that are exposed to interest rate risk. The fair value of these obligations and assets may change if base rate changes in interest rates occur.

The following table summarizes the potential impact on net assets of hypothetical base rate changes in interest rates assuming a parallel shift in the yield curve, with all other variables remaining constant.

As at	March 31, 2025			December 31, 2024
50 basis point increase ⁽¹⁾	$	(8,836	)	$	7,559
50 basis point decrease ⁽¹⁾		5,913			(18,939	)

^{(1) Losses are presented in brackets and gains are presented as positive numbers.}

Actual results may differ significantly from this sensitivity analysis. As such, the sensitivities should only be viewed as directional estimates of the underlying sensitivities for the respective factors based on the assumptions outlined above.

Conference Call

The Company will hold a conference call on Friday, May 16, 2025 at 11:00 a.m. Eastern Time to discuss the first quarter financial results. Shareholders, prospective shareholders, and analysts are welcome to listen to the call. To join the call, please use the dial-in information below. A recording of the conference call will be available on our Company’s website www.mountlogancapital.ca in the ‘Investor Relations’ section under “Events”.

Canada Dial-in Toll Free: 1-833-950-0062
US Dial-in Toll Free: 1-833-470-1428
International Dial-ins
Access Code: 813165

About Mount Logan Capital Inc.

Mount Logan Capital Inc. is an alternative asset management and insurance solutions company that is focused on public and private debt securities in the North American market and the reinsurance of annuity products, primarily through its wholly owned subsidiaries Mount Logan Management LLC (“ML Management”) and Ability Insurance Company (“Ability”), respectively. Mount Logan also actively sources, evaluates, underwrites, manages, monitors and primarily invests in loans, debt securities, and other credit-oriented instruments that present attractive risk-adjusted returns and present low risk of principal impairment through the credit cycle.

ML Management was organized in 2020 as a Delaware limited liability company and is registered with the SEC as an investment adviser under the Investment Advisers Act of 1940, as amended. The primary business of ML Management is to provide investment management services to (i) privately offered investment funds exempt from registration under the Investment Company Act of 1940, as amended (the “1940 Act”) advised by ML Management, (ii) a non-diversified closed end management investment company that has elected to be regulated as a business development company, (iii) Ability, and (iv) non-diversified closed-end management investment companies registered under the 1940 Act that operate as interval funds. ML Management also acts as the collateral manager to collateralized loan obligations backed by debt obligations and similar assets.

Ability is a Nebraska domiciled insurer and reinsurer of long-term care policies and annuity products acquired by Mount Logan in the fourth quarter of fiscal year 2021. Ability is also no longer insuring or re-insuring new long-term care risk.

Non-IFRS Financial Measures

This press release makes reference to certain non-IFRS financial measures. These measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement IFRS financial measures by providing further understanding of the Company’s results of operations from management’s perspective. The Company’s definitions of non-IFRS measures used in this press release may not be the same as the definitions for such measures used by other companies in their reporting. Non-IFRS measures have limitations as analytical tools and should not be considered in isolation nor as a substitute for analysis of the Company’s financial information reported under IFRS. The Company believes that securities analysts, investors and other interested parties frequently use non-IFRS financial measures in the evaluation of issuers. The Company’s management also uses non-IFRS financial measures in order to facilitate operating performance comparisons from period to period.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains forward-looking statements and information within the meaning of applicable securities legislation. Forward-looking statements can be identified by the expressions “seeks”, “expects”, “believes”, “estimates”, “will”, “target” and similar expressions. The forward-looking statements are not historical facts but reflect the current expectations of the Company regarding future results or events and are based on information currently available to it. Certain material factors and assumptions were applied in providing these forward-looking statements. The forward-looking statements discussed in this release include, but are not limited to, statements about the benefits of the closing of the acquisition of a minority interest in Runway as well as the proposed transaction involving the Company and 180 Degree Capital, including future financial and operating results, the Company’s and 180 Degree Capital’s plans, objectives, expectations and intentions, the expected timing and likelihood of completion of the proposed transaction, the regulatory environment in which the Company operates, and the results of, or outlook for, the Company’s operations or for the Canadian and U.S. economies, statements relating to the Company’s continued transition to an asset management and insurance platform business and the entering into of further strategic transactions to diversify the Company’s business and further grow recurring management fee and other income and increasing Ability’s assets; the Company’s plans to focus Ability’s business on the reinsurance of annuity products; the potential benefits of combining Mount Logan’s and Ovation’s platform including an increase in fee-related earnings as a result of the acquisition; the decrease in expenses in the asset management segment; the historical growth in the asset management segment and insurance segment being an indicator for future growth; the growth and scalability of the Company’s business the Company’s business strategy, model, approach and future activities; portfolio composition and size, asset management activities and related income, capital raising activities, future credit opportunities of the Company, portfolio realizations, the protection of stakeholder value; the expansion of the Company’s loan portfolio; synergies to be achieved by both the Company and Runway through the Company’s strategic minority investment in Runway; and the expansion of Mount Logan’s capabilities. All forward-looking statements in this press release are qualified by these cautionary statements. The Company believes that the expectations reflected in forward-looking statements are based upon reasonable assumptions; however, the Company can give no assurance that the actual results or developments will be realized by certain specified dates or at all. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including that the Company has a limited operating history with respect to an asset management oriented business model; Ability may not generate recurring asset management fees, increase its assets or strategically benefit the Company as expected; the expected synergies by combining the business of Mount Logan with the business of Ability may not be realized as expected; the risk that Ability may require a significant investment of capital and other resources in order to expand and grow the business; the Company does not have a record of operating an insurance solutions business and is subject to all the risks and uncertainties associated with a broadening of the Company’s business; ability to obtain the requisite Company and 180 Degree Capital shareholder approvals, as well as governmental and regulatory approvals required for the proposed transaction with 180 Degree Capital, the risk that an event, change or other circumstance could give rise to the termination of the proposed transaction with 180 Degree Capital, the risk that a condition to closing of the proposed transaction with 180 Degree Capital may not be satisfied, the risk of delays in completing the proposed transaction with 180 Degree Capital, the risk that the businesses of the Company and with 180 Degree Capital will not be integrated successfully, the risk that the expected synergies of the acquisition of Ovation may not be realized as expected and the matters discussed under “Risks Factors” in the most recently filed annual information form and management discussion and analysis for the Company. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, a forward-looking statement speaks only as of the date on which such statement is made. The Company undertakes no obligation to publicly update any such statement or to reflect new information or the occurrence of future events or circumstances except as required by securities laws. These forward-looking statements are made as of the date of this press release.

This press release is not, and under no circumstances is it to be construed as, a prospectus or an advertisement and the communication of this release is not, and under no circumstances is it to be construed as, an offer to sell or an offer to purchase any securities in the Company or in any fund or other investment vehicle. This press release is not intended for U.S. persons. The Company’s shares are not and will not be registered under the U.S. Securities Act of 1933, as amended, and the Company is not and will not be registered under the U.S. Investment Company Act of 1940 (the “1940 Act”). U.S. persons are not permitted to purchase the Company’s shares absent an applicable exemption from registration under each of these Acts. In addition, the number of investors in the United States, or which are U.S. persons or purchasing for the account or benefit of U.S. persons, will be limited to such number as is required to comply with an available exemption from the registration requirements of the 1940 Act.

Contacts:
Mount Logan Capital Inc.

365 Bay Street, Suite 800
Toronto, ON M5H 2V1
info@mountlogancapital.ca

Nikita Klassen
Chief Financial Officer
Nikita.Klassen@mountlogancapital.ca

Scott Chan
Investor Relations
Scott.Chan@mountlogan.com


MOUNT LOGAN CAPITAL INC. CONSOLIDATED STATEMENT OF FINANCIAL POSITION (in thousands of United States dollars, except share and per share amounts)

As at	Notes	March 31, 2025			December 31, 2024
ASSETS
*Asset Management:*
Cash		$	2,563		$	8,933
Investments	6		25,605			21,668
Intangible assets	9		24,064			24,801
Other assets			8,622			8,187
Total assets — asset management			60,854			63,589
*Insurance:*
Cash and cash equivalents			123,245			77,055
Restricted cash posted as collateral	18		12,526			15,716
Investments	6		1,019,969			1,045,436
Reinsurance contract assets	13		408,492			392,092
Intangible assets	9		2,444			2,444
Goodwill	9		55,015			55,015
Other assets			21,298			38,183
Total assets — insurance			1,642,989			1,625,941
Total assets		$	1,703,843		$	1,689,530
LIABILITIES
*Asset Management*
Due to affiliates	10	$	8,994		$	10,470
Debt obligations	12		78,401			78,427
Derivatives – debt warrants	12		737			504
Accrued expenses and other liabilities			9,770			5,097
Total liabilities — asset management			97,902			94,498
*Insurance*
Debt obligations	12		17,250			14,250
Insurance contract liabilities	13		1,069,625			1,048,413
Investment contract liabilities	14		222,074			227,041
Derivatives	18		1,864			5,192
Funds held under reinsurance contracts			238,371			239,918
Accrued expenses and other liabilities			7,856			2,995
Total liabilities — insurance			1,557,040			1,537,809
Total liabilities			1,654,942			1,632,307
EQUITY
Common shares	11		121,372			116,118
Warrants	11		1,129			1,129
Contributed surplus			8,063			7,917
Surplus (Deficit)			(59,805	)		(46,083	)
Cumulative translation adjustment			(21,858	)		(21,858	)
Total equity			48,901			57,223
Total liabilities and equity		$	1,703,843		$	1,689,530


MOUNT LOGAN CAPITAL INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (in thousands of United States dollars, except share and per share amounts)

		Three months ended
	Notes	March 31, 2025			March 31, 2024

REVENUE
*Asset management*
Management and incentive fee	7	$	2,928		$	3,494
Equity investment earning			282			224
Interest income			268			271
Dividend income			38			112
other Income			299
Net gains (losses) from investment activities	4		(623	)		(71	)
Total revenue — asset management			3,192			4,030
*Insurance*
Insurance revenue	8		23,389			22,741
Insurance service expenses	8		(25,534	)		(25,184	)
Net expenses from reinsurance contracts held	8		(52	)		(649	)
Insurance service result			(2,197	)		(3,092	)
Net investment income	5		19,004			21,804
Net gains (losses) from investment activities	4		6,958			2,666
Realized and unrealized gains (losses) on embedded derivative — funds withheld			(4,783	)		(3,829	)
Other income			—			6
Total revenue, net of insurance service expenses and net expenses from reinsurance contracts held — insurance			18,982			17,555
Total revenue			22,174			21,585
EXPENSES
*Asset management*
Administration and servicing fees	10		1,237			1,423
Transaction costs			4,545			251
Amortization and impairment of intangible assets	9		737			346
Interest and other credit facility expenses	12		1,857			1,702
General, administrative and other			4,202			3,893
Total expenses — asset management			12,578			7,615
*Insurance*
Net insurance finance (income) expenses	5		17,808			(7,252	)
Increase (decrease) in investment contract liabilities	14		1,957			2,279
(Increase) decrease in reinsurance contract assets			966			3,556
General, administrative and other			2,549			2,239
Total expenses — insurance			23,280			822
Total expenses			35,813			8,437
Income (loss) before taxes			(13,684	)		13,148
Income tax (expense) benefit — asset management	15		361			(56	)
Net income (loss) and comprehensive income (loss)		$	(13,323	)	$	13,092
Earnings per share
Basic		$	(0.48	)	$	0.51
Diluted		$	(0.48	)	$	0.50
Dividends per common share — USD		$	0.01		$	0.02
Dividends per common share — CAD		$	0.02		$	0.02

¹The yield is calculated based on the net investment income less management fees paid to Mount Logan divided by the average of investments in financial assets for the current year and prior year.

The MIL Network –

May 16, 2025

MIL-OSI USA: Tillis Honors North Carolina Law Enforcement Officers During National Police Week

US Senate News:

Source: United States Senator for North Carolina Thom Tillis
WASHINGTON, D.C. – In recognition of National Police Week, Senator Thom Tillis delivered remarks on the Senate floor in honor of North Carolina law enforcement officers who made the ultimate sacrifice in the last year. He encouraged his Senate colleagues to help pass the Protect and Serve Act, legislation introduced by Senator Tillis that would give federal prosecutors more tools to go after those who deliberately target law enforcement officers by making it a federal crime to knowingly cause, or attempt to cause, bodily injury to a law enforcement officer.

Watch Senator Tillis’ full remarks HERE.
Tillis on honoring fallen North Carolina Law Enforcement Officers during National Police Week:
“Mr. President, I rise during Police Week to honor the brave men and women in North Carolina and across the nation who serve in law enforcement. Thousands of officers and their families come to our nation’s capital every year to pay tribute to those who made the ultimate sacrifice to protect our communities. Each name added to the memorial wall represents a story of courage, selflessness, and sacrifice. Unfortunately, North Carolinians know all too well about that kind of sacrifice.”
Tillis on the Protect and Serve Act:
“While we can’t stop natural disasters or accidents, lawmakers can play a role in helping reduce the intentional targeting of law enforcement. That’s why I continue to push for the passage of the Protect and Serve Act. This is legislation that I introduced that makes it a federal crime to intentionally harm or attempt to harm a law enforcement officer. It also gives prosecutors new tools to penalize criminals who target law enforcement. Officers go to work every day prepared to make the ultimate sacrifice for their communities, and they need our support more now than ever.”
Tillis thanks the men and women in law enforcement:
“To every officer serving today, thank you for your courage. You’ve earned my unending gratitude. By supporting this bill, members of the U.S. Senate can demonstrate their enduring gratitude to law enforcement. By not supporting it, I don’t know what that says, but I know it’s something that, in North Carolina and among law enforcement agencies, it’s not good. To the families of the fallen, your loss is shared by a grateful nation. We will never forget your loved ones’ service nor their sacrifice. God bless them. God bless law enforcement, and may God bless the United States of America.”

MIL OSI USA News –

May 16, 2025

MIL-OSI USA: Coons, Shaheen, Tillis, Ricketts, Britt, Murphy Statement on the Romanian Presidential Election

US Senate News:

Source: United States Senator for Delaware Christopher Coons
WASHINGTON – Today, U.S. Senators Chris Coons (D-Del.), Thom Tillis (R-NC), Pete Ricketts (R-NE), Katie Britt (R-AL) and Chris Murphy (D-CT) issued the following statement on the upcoming presidential election runoff in Romania: “In advance of the presidential election runoff in Romania this weekend, we remain confident in the strength of Romania’s democracy and reaffirm the steadfast alliance between the U.S. and Romania. Romania is a vital and dependable NATO ally, a net European security contributor, and a leader in securing NATO’s eastern flank. Romania consistently pulls its weight, from supporting Ukraine in its fight against Russian aggression to partnering with Moldova to accelerate its European Union accession. “This weekend, the Romanian people will go to the polls to choose a new leader and chart their future path, one we hope will deepen the U.S. partnership with Romania and reaffirm its strong role within Europe. We urge the Romanian people, including members of the Romanian diaspora around the world, to show up, vote, and exercise their right to self-determination. We also call on the Romanian authorities to ensure free and fair elections, untainted by outside interference. “We look forward to embarking on the next chapter of the U.S.-Romania partnership with Romania’s future and duly elected leaders.”

MIL OSI USA News –

May 16, 2025

MIL-OSI USA: Bipartisan Delegation Commemorates National Science Foundation on 75th Anniversary

Source: United States House of Representatives – Representative Don Beyer (D-VA)

Reps. Don Beyer (D-VA), Jay Obernolte (R-CA), Bill Foster (D-IL), Scott Franklin (R-FL), and Haley Stevens (D-MI) today introduced a resolution commemorating the National Science Foundation’s (NSF) accomplishments in science, engineering, and education over the past 75 years. Since its creation in 1950, the NSF has supported cutting-edge science and engineering projects across the country in addition to fostering scientific collaboration across the globe. Its hallmark accomplishments include helping catalyze the creation of the internet, and advancing technology for MRI machines, 3–D printing, and artificial intelligence.

“The NSF supports 350,000 researchers, students, teachers, and entrepreneurs every year, driving innovation for critical technologies like artificial intelligence and revolutionary breakthroughs like LASIK eye surgery. This is the agency behind countless scientific advancements that have improved the lives of millions of Americans and people across the world,” said Rep. Beyer. “At a time when global scientific competition continues to grow and our national security increasingly depends on technological leadership, we should be strengthening NSF investments. Supporting the NSF means supporting America’s health, economy, and national security.”

“Fo 75 years, the National Science Foundation has been a driving force behind America’s leadership in science and technology,” said Rep. Obernolte. “Its commitment to advancing fundamental research has laid the groundwork for countless innovations that improve lives, power our economy, and expand the frontiers of human knowledge.”

“I’m proud to join colleagues on both sides of the aisle in celebrating 75 years of the National Science Foundation,” said Rep. Foster. “As Congress’ only PhD physicist, I’ll continue doing everything I can to fully fund NSF and all of our science agencies to ensure that we remain a global leader in research and innovation for generations to come.”

“The National Science Foundation has delivered real results for communities across our country over its 75-year history,” said Rep. Franklin. “In Florida, NSF-backed research has strengthened our universities, supported high-tech industries and prepared students for the STEM jobs of tomorrow. I’m proud to help lead this resolution recognizing NSF’s direct role in fueling innovation, growing our economy and keeping both Florida and the U.S. competitive on the global stage.”

“For 75 years, the National Science Foundation has been the bedrock of American discovery, empowering generations of researchers and providing STEM opportunity to students across the country. In Michigan, the NSF’s impact is felt in every lab, on every shop floor, and in every classroom,” said Rep. Stevens. “As we celebrate this incredible history, we must recommit ourselves to the ideals that NSF was founded upon—to promote the progress of science, to advance the national health, prosperity, and welfare, and to secure our national defense. That mission is as urgent today as it was in 1950, and Michigan’s future depends on seeing it through for the next 75 years.”

Full text of the resolution is available here.

MIL OSI USA News –

May 16, 2025

MIL-OSI USA: Congressman Allen Backs Pro-Law Enforcement Bills During National Police Week

Source: United States House of Representatives – Congressman Rick Allen (R-GA-12)

This week, in honor of National Police Week, the U.S. House of Representatives passed three pieces of legislation to express support for law enforcement officers and agencies nationwide. After voting in support of each measure, Congressman Rick W. Allen (GA-12) issued the following statement:

“National Police Week serves as a powerful reminder of the sacrifices made by our law enforcement officers and the vital role they play in protecting our communities, our families, and our loved ones. While they face increasing challenges and threats to their safety, as the recent tragedy in Columbia County has shown us, it is more important now than ever to stand with our men and women in blue. I was proud to help pass this week’s legislation and will continue to unapologetically support those who carry the badge in the 12th District and across the nation.”

The pro-law enforcement bills passed this week include:

H.R. 2240, the Improving Law Enforcement Officer Safety and Wellness Through Data Act of 2025:

Requires the Attorney General to assemble reports on violence against law enforcement officers and the effectiveness of programs meant to provide law enforcement with wellness resources and protective equipment so we may comprehensively enhance the safety of police officers.

H.R. 2243, the LEOSA Reform Act:

Broadens the ability of qualified active and retired law enforcement officers to carry concealed firearms in areas such as national parks, federal facilities open to the public, and state, local, or private property open to the public.

H.R. 2255, the Federal Law Enforcement Officer Service Weapon Purchase Act:

Directs the General Services Administration to allow current and retired federal law enforcement officers to buy their retired service weapons at salvage value.

MIL OSI USA News –

May 16, 2025

MIL-OSI USA: Feenstra Supports Legislation Requiring Reports about Violent Attacks on Police and Law Enforcement Officers

Source: United States House of Representatives – Representative Randy Feenstra (IA-04)

WASHINGTON, D.C. – Today, U.S. Rep. Randy Feenstra (R-Hull) voted for, and the U.S. House of Representatives passed, legislation requiring the U.S. Attorney General to furnish reports on violent attacks against police and law enforcement officers.

“Criminals who deliberately attack police and law enforcement officers must be punished and held accountable for their actions. Our society must have a zero-tolerance policy when it comes to assaulting police and law enforcement. One way that we can help protect the men and women who protect our communities is by gathering information on attacks against law enforcement,” said Rep. Feenstra. “It’s why I voted for legislation requiring the U.S. Attorney General to provide reports to Congress and the American people about violent attacks against police and law enforcement officers. By fully understanding the facts, we can better defend law enforcement from vicious criminals and threats to their lives.”

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MIL OSI USA News –

May 16, 2025

MIL-OSI USA: Rep. Mann Votes to Strengthen Farm Safety Net, Reform SNAP

Source: United States House of Representatives – Representative Tracey Mann (Kansas, 1)

WASHINGTON, D.C. – U.S. Representative Tracey Mann (KS-01) voted to advance the House Agriculture Committee’s budget reconciliation proposal that cuts $295 billion in wasteful and fraudulent spending and makes long-overdue investments for the nation’s farmers, ranchers, and agricultural producers. Rep. Mann released the following statement after the markup.

“America’s farmers, ranchers, and agricultural producers have been clear—they are struggling, and are in need of some degree of certainty,” said Rep. Mann. “After some Congressional Democrats held a Farm Bill hostage last Congress, House Agriculture Committee Republicans delivered to address some of the agriculture community’s most pressing needs. We made much-needed investments into rural America that protect the livelihoods of our farmers, ranchers, and agricultural producers, and our nation’s food supply.

“Our proposal also strengthens the safety net for America’s most vulnerable communities by uprooting fraudulent spending and making commonsense changes that ensure the SNAP program can serve those it was intended to. The proposal gets able-bodied adults back on the ladder of opportunity, giving them a fair shot at the American dream, all while ensuring that the program is a bridge to a better life instead of a permanent destination. With seven million open jobs across the country, it’s time to get America back to work.

“I’m grateful we were able to move this proposal forward, and I look forward to seeing how our work lifts Americans out of poverty and provides certainty to America’s agriculture community.”

The House Agriculture Committee’s budget reconciliation proposal:

Invests $60 billion in strengthening the farm safety net by expanding crop insurance and updating reference prices
Bolsters trade promotion to correct the agricultural trade deficit left by the Biden Administration
Provides funds to address the deferred maintenance backlog at land-grants like Kansas State University
Invests in livestock biosecurity to fend off growing threats like New World Screwworm
Closes loopholes in the law that allow states to waive enforcement of work requirements
Enacts accountability measures to encourage states to administer the SNAP program efficiently and effectively
Ensures that work capable adults without children too young for school are working or volunteering in order to receive benefits

Ahead of the House Agriculture Committee markup, Rep. Mann applauded the committee’s portion of the bill and its investments to strengthen the farm economy. In May 2024, Rep. Mann voted to advance the Farm, Food, and National Security out of committee. Rep. Mann has continuously expressed his frustration with Congressional Democrats’ efforts to hold the agricultural community hostage to political games instead of passing a Farm Bill.

The House Agriculture Committee’s budget reconciliation proposal will now go to the House Budget Committee for further consideration.

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MIL OSI USA News –

May 16, 2025

MIL-OSI USA: Rep. Barry Moore introduces legislation to protect Alabama producers from feral hogs

Source: United States House of Representatives – Congressman Barry Moore

Washington, D.C. — Today, Rep. Barry Moore (AL-01) introduced the Feral Swine Eradication Act, the bicameral Feral Swine Eradication Act. This legislation extends the Feral Swine Eradication and Control Pilot Program (FSCP). Feral swine are consistently detrimental to farmer’s, rancher’s and forester’s operations, raking in $1.5 billion in damages every year. The FSCP has seen a great deal of success in reducing these damages through trapping, removing and monitoring and assessing the lands on which feral swine frequently reside. Texas Senator John Cornyn introduced the Senate reauthorization legislation of this program.

“Feral swine have caused millions of dollars in damage on agricultural operations across Alabama and can undo years of hard work on Alabama’s farms, ranches and forests toward feeding our country,” said Moore. “I am standing with Alabama farmers to take action against this threat by authorizing an eradication pilot program with proven results, with changes to make it even more effective.”

“All across Texas, farmers are struggling to save their fields from invasive species that are destroying their crops and threatening other livestock on their land. This in turn has meant our constiuents have had to pay hirer food prices at the grocery stores. I am grateful to be working with my fellow Texan, Congresswoman De La Cruz on this important issue and look forward to seeing this get across the finish line.” said Crockett.

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MIL OSI USA News –

May 16, 2025

MIL-OSI USA: Wyden, Merkley, Colleagues Slam Trump Administration’s Attacks on Senior Nutrition Programs

US Senate News:

Source: United States Senator Ron Wyden (D-Ore)
May 15, 2025
“The cuts will exacerbate hunger, poor health, and social isolation”
Washington D.C.—U.S. Senators Ron Wyden and Jeff Merkley, both D-Ore, said today they have joined fellow Senate leaders to call on Republicans to reconsider disastrous cuts and attacks on programs and agencies that support seniors with food assistance among other necessities.
“We are writing today to express our serious concerns regarding efforts by the Trump administration and the potential of cuts proposed in your budget resolution to debilitate our nation’s beloved nutrition programs for seniors, taking hot meals, sustenance, and social interaction away from our seniors to fund tax cuts for billionaires,” the lawmakers wrote to Senate Republicans. “These attacks are multifaceted and will deeply hurt all aspects of senior nutrition services, from funding to program delivery. The cuts will exacerbate hunger, poor health, and social isolation, and our nation’s seniors will be gravely harmed by these decisions.”
If implemented, the Republicans’ proposed cuts will take hot meals, nutritious food, and social interaction away from millions of older adults nationwide, jeopardizing their health and quality of life.
Specifically, the senators urged Republicans to reconsider the following actions:
Cuts to the Supplemental Nutrition Assistance Program, which is the largest food assistance program in the country;
The dismantling of the Administration for Community Living, which administers the Older Americans Act’s nutrition programs;
The elimination of the Social Services Block Grant, which provides critical funding for senior nutrition programs;
Cuts to Medicaid, which funds meal-delivery programs through Section 1115 waivers for home-bound older adults and people with disabilities; and
Attacks on the Social Security Administration, which ensures accurate and timely payment of Social Security benefits so older adults and people with disabilities can put food on the table.
The letter was led by U.S. Senator Kirsten Gillibrand, D-N.Y. Along with Wyden and Merkley, the letter was also signed by U.S. Senators Bernie Sanders, I-Vt., Amy Klobuchar, D-Minn., and Senate Minority Leader Chuck Schumer, D-N.Y. The senators wrote in their capacities as ranking members of the Senate Committees on Aging; Finance; Budget; Health, Education, Labor, and Pensions; Agriculture, Nutrition, and Forestry; and as Senate Democratic Leader, respectively.
The full text of the letter is here.

MIL OSI USA News –

May 16, 2025

MIL-OSI USA: Murkowski to EPA: “Let me help you”

US Senate News:

Source: United States Senator for Alaska Lisa Murkowski
05.15.25
Washington, D.C. – U.S. Senator Lisa Murkowski, Chair of the Senate Appropriations Subcommittee on Interior, Environment, and Related Agencies, hosted the Administrator of the Environmental Protection Agency (EPA) in subcommittee to discuss the agency’s budget request. The Senator and Administrator Lee Zeldin discussed how the subcommittee can best serve the agency’s mission of providing clean air, water, and land for all Americans, while the Administrator committed to fostering a better working relationship with the subcommittee and Senator Murkowski’s office.
Chair Murkowski discussed a number of issues important to Alaska that she is looking forward to collaborating with the EPA on, including cleaning up PFAS contaminated lands, ensuring clarity for Alaskans on frozen or paused EPA grants, addressing the backlog of Congressionally Directed Spending (CDS) projects, and investing in cleaning up lands conveyed to Alaska Natives that were contaminated by the federal government.
Click here to watch the Senator’s full remarks and questions.
The full transcript of Senator Murkowski’s opening remarks, questions and exchanges with Administrator Zeldin, and the Senator’s closing remarks can be read below.
TRANSCRIPT
Opening remarks
Murkowski: Good morning, the Committee will come to order. I’d like to welcome Administrator Zeldin to the committee here this morning. I think it is important that as we begin our budget hearings, we begin the oversight through the Interior Appropriations Subcommittee with the EPA, an area of interest, I think, for all of us, as we think about how we ensure that Americans from Alaska to Oregon, to New York to all the places in between, have the benefits of clean air, clean water for all of us.
So, thank you, Administrator, for being here to discuss the Fiscal Year 2026 budget request. We recognize that what we have seen is “skinny,” as we refer to it around here. Each year, the subcommittee holds a hearing to examine the EPA budget requests. Some years, the budget is the focus of the hearing, and others, it’s agency actions that draw the majority of the questions. I think it’s probably safe to assume that this year it’s going to be a mixture of both of these. And again, we’ve just seen the “skinny” outline of Fiscal Year 2026, we have yet to see the full details of the President’s budget request, but I have to say at the outset: looking at some of these proposed cuts, I’m looking at them and questioning whether they are serious cuts. I find many of them problematic. I’m just going to be open and honest with my words here this morning and we will have good dialogue, constructive dialogue, in this committee.
So again, while we’re waiting for additional details, I want to spend my time this morning talking about the vision for the EPA and Administrator, how you plan to use your position to continue to better provide clean air, water and land for Americans from Alaska to Florida, from California to Maine, and how a budget like the one that you propose could support that mission.
Under the Biden administration, I had some very serious concerns about the regulatory overreach of the agency. I expressed them often. I also shared the concerns that I felt were overzealous enforcement actions coming out of the agency that went contrary to the needs of Alaskans. We were able to figure out how to find common ground in certain areas to make progress, and some things that were certainly good for Alaska. I mentioned to you contaminated lands, residential wood stove testing and certification. We still have a long, long ways to go on PM, 2.5, I think we know that. PM 2.5 and 301 (h) waivers… We’ve got work to do. I think we know that.
So now we’re in a in a new administration, new administrator and perhaps a different direction here. I do appreciate many of the actions and the initiatives that we have had a chance to discuss. (I) certainly support the willingness to work with the Army Corps of Engineers to review the WOTUS rule, your reconsideration of Clean Power Plan 2.0, the vehicle emissions rules, and then, of course, a renewed focus on permitting, something I would think that all of us can come together on.
But my concern this morning, and what you will hear from me, and I think many others, is the approach that’s been taken with regards to freezing funds, canceling grants, and then the reorganization of the agency. I’m looking at it through the not only through the lens of Alaskans, but really all Americans who, regardless of how you feel about the EPA, we benefit from its data driven decision-making, the remediation efforts and the mission to protect human health and environment. And I respect, I give a lot of leeway for an incoming administration’s prerogative to implement changes in support of the policies and priorities, but it also has to be done with clear articulation of the of the goals against which such changes will be measured.
And so, it’s problematic when as a committee we’re asking questions, we don’t receive basic data that would be helpful, would be good guidance for us. And so, when we see implementation of significant changes without working or seriously communicating with us, your partners in Congress, it just makes it harder for us to do the job of supporting your mission. We are on the same side here, and so we want to work with you in so many of these areas.
I think we all can agree that there are inefficiencies and redundancies to be found throughout the federal government, some of EPA programs we know are overly burdensome. And again, I applaud the administration for seeking to find ways to help ordinary Americans cut through red tape and make programs easier to access. But the seemingly indiscriminate freezing of EPA funding, regardless of source, has caused some significant anxiety from the folks that I’m talking to in Alaska. One example is the Community Change Grants in my state, we’ve received $150 million from this program. It’s communities like the little village of Kipnuk, it’s the Native village of Kotzebue. Took a lot of work to get to the place where they were able to secure the funding, and they’ve had their grants canceled by the agency without any explanation, and so this is where some of the anxiety comes, is just not knowing why.
It’s not just in Alaska. I think members on both sides of the dais can, and probably will, talk about the benefits of the grants to their states and their communities. You’ve also proposed massive reorganizations of EPA to include the elimination of the Office of Atmospheric Programs and the Office of Research and Development. It is true that agencies funded by our bill will have the flexibility to reprogram and reorganize, and we provide that flexibility because we know – we get it. There can be urgent and exigent circumstances that warrant such actions. However, agencies must comply with the requirements and provide the committees with the requisite information, whether it’s budgetary and staffing implications, but also the rationale for the actions to include why these actions are so urgent. And so far, EPA has not adhered to our reprogramming guidelines and has been largely unresponsive to the questions. So, I would certainly expect timely and transparent responses and information. I would expect EPA to abide by the parameters that are outlined in our reprogramming guidelines. And I think, as a former member of Congress, you get it. You’ve been on the frustration end of things as well. So again, ways that we can be working together.
Now, turning our attention to the FY 26 budget proposal. In Alaska, we’ve seen on the ground examples of really good things being done with some of the programs that your budget has substantially reduced or proposed to eliminate. Example: the proposed reduction of the State Revolving Fund, reducing it from $2.8 billion down to $305 million. This is an 88% reduction. This was one of the ones when I mention unserious proposal. This is the one that I’m looking at, because it clearly is one of the most essential programs that the agency administers. And you mentioned as part of your justification for cutting this program that the account has been heavily earmarked, and this is true. The 66 members of the Senate, including 17 Republicans, making it our most bipartisan account, who requested congressionally directed spending for the SRF accounts did so in connection with the states to ensure the funding was going to critical clean water and drinking water projects. Now I would also note that in FY 25, Congress voted for, and the President signed into law, a full year CR that keeps the SRF fully funded, rather than reducing it by the amount of the CDS is.
So, I’m going to close my comments here with, I don’t know if it’s a note of sympathy or just an acknowledgement, because I get it. You are, I think, 106 days since you were confirmed and sworn in as EPA Administrator. And for an agency as key and as vital as yours, that’s really a short time to get everything up and running, from enacting the administration’s priorities to establishing a clear working relationship with us here in Congress. We know that you’re still getting your team in place, because we’re trying to move them through our process here, and it is slow, and you need those folks. You need the members of your team. So, I’m giving you the benefit of the doubt here. There’s plenty of time for us to figure out what’s working what’s not, establish open lines of communication between our teams that will mutually benefit your mission and all those that we work for. So, I’m eager to start on that. I thank you for your testimony today, your willingness to answer our questions and just the opportunity to be working with you. And with that, I turn to ranking member Merkley for his comments.
First line of questions from Murkowski
Murkowski: I will begin with my first five minutes, and again, appreciate the opportunity that you and I have had to discuss some of the particular issues. I’d like to ensure that we continue that very direct engagement, not only between us, but also with our staffs. We’ve had a conversation about transparency, partnership and responsiveness, and again, I think you come to this position really from a good place, because you’ve sat in in our seats here, so to speak. When you’ve asked questions of an agency and you get frustrated because you’re not able to get what you’re seeking.
So, there is a lot going on within the agency, as you have outlined, and as I suppose the ranking member and I have outlined. But we need to be more informed, rather than getting updates by way of tweets or stories for them from the media. The agency has issued reorganization notifications, but we’re not getting the full picture or the answers to some of the questions that we have asked. So, my direct question to you this morning is just a renewed commitment that the promise of transparency, partnership and responsiveness is there, that we’re going to be able to have meetings between your senior teams and our folks on the Appropriations side, so that we can help you. Let me help you type of an approach, and that’s what I’m seeking from you this morning, Mr. Administrator.
Zeldin: Absolutely, Madam Chair, and you uniquely amongst 535 members of Congress have a “Batphone” into my office, which I would encourage you to use at any time. We’ve spoken since my confirmation, and when we meet, you often have a very long list of priorities for Alaska, that you’re fighting for, that you’re passionate about. And to make sure that we’re working through that list at every opportunity is something that will be a priority for our team as long as I am here as administrator, and I would encourage you to reach out whenever you would like, and I’d be available to work through whatever is at the top of your list that day.
Murkowski: Very good. Very good. Let me ask about the Clean Water State Revolving Fund and the Drinking Water State Revolving Fund. I mentioned in my opening, these are probably the areas where on this committee we have more bipartisan support for a program, and we’re looking at a budget that effectively eliminates the one thing that we’re all in agreement on. So, I’d ask you to share with me and the others on the committee why the agency would move away from such a critical on-the-ground program when we’re talking about access to clean water?
Zeldin: Madam Chair, as you pointed out in your opening remarks, and as you referenced from the skinny budget that was released that we’re here to talk about today, there has been a bleeding out of funds deliberately through decisions made by Congress to earmark. I understand that when I came into this position, I inherited a lot of earmarks that many of you have fought for, and I want to be able to continue to work with each of you and your staffs. In some cases, we need to get the recipients to submit paperwork where they’re on the receiving end of big earmarks, so that we can work through this backlog as quickly as we can. It would be helpful to have a conversation about the SRF and the use of earmarks, and how that has been reducing the funding through the years.
As you all know, there’s a difference when these skinny budgets come out, whether or not something is funded at $0, or it’s funded at $1. Now that might not seem like much to the American public in understanding how these conversations go in Congress. The SRF is not zeroed out in the skinny budget – In fact, it has hundreds of millions of dollars there in it. So, as we go forward with this process, I look forward to more conversations about the SRF, and I’m sure members of the House and the Senate will be having conversations amongst yourselves as to what you believe to be the appropriate funding level for SRF, as well as the future of the program, and whether or not earmarks will continue to be used to reduce that balance. That’s obviously a decision that Congress has a very important role to play.
Murkowski: Well we do, and we can have a separate discussion about earmarks. I think we both know that earmarks don’t contribute to the top line number you are discussing here. A concern that I have raised with you, that there has been, over the years, Congressionally Directed Spending, earmarks, that have been moved through the process, authorized and appropriated to, and still not spent down. So, my time has expired. Now know that on this next round, I’m going to ask for a little more discussion about that. But I do think that given the significance of the Clean Water State Revolving Fund and the Drinking Water State Revolving Fund by so many of us… let’s have a broader discussion about how we move forward with what I would think most of us recognize has got to be a priority within the EPA.
Second line of questions from Murkowski
Murkowski: Administrator, I had asked you, we had had a discussion about the Congressionally Directed Spending projects. You have indicated that, indeed, we’ve got a backlog here that we need to address. My understanding is that since fiscal year 2022, Congress had directed 2,264 CDs projects at the EPA – only 705 have received the funding. So, I think both of us would agree, you know, we’ve got an issue here. There’s a problem. The FY 25 CR, of course, did not include the CDS projects. So, I’m looking at that and saying, all right, the agency has the balance of the fiscal year to work on catching up from this backlog of the CDSs. Can you just give me a little bit of your understanding in terms of how you’ve directed your team to expeditiously get these projects out the door in a more timely manner?
Zeldin: I appreciate the question, Madam Chair. The backlog goes back years. I’ve directed my team to both work with the members of Congress who represent those areas, the members of Congress who requested those earmarks to get assistance in the case where the recipient has not been responsive, and simultaneously, to try to engage as much as possible directly with the recipient, to try to get the recipient to submit their paperwork. We want to completely get through the entire backlog that we inherited as quickly as possible.
Murkowski: Can we help you with that?
Zeldin: Yes.
Murkowski: I’m working with my constituents right now as we’re moving forward in this year’s appropriations and getting requests for CDSs. So, can you perhaps either let me know who it is on your team that we need to be communicating directly to if there are snags on your end, or perhaps, again, you’re just not able to get in touch with the applicant?
Zeldin: 100%. As you well know, the EPA is broken down into all sorts of different program offices.
Murkowski: Right.
Zeldin: And the it might not be just one person for all grants. It might depend on whether the backlog might… we might be talking about a backlog inside of the Office of Water, where they need assistance from the members of Congress, or maybe it’s another office. Maybe it’s the Office of Air and Radiation. We would look forward to an opportunity to work with you and your team, and all members of Congress, on both sides of the aisle as much as possible, to eliminate the backlog that we inherited.
Murkowski: Good, good. Let’s do that. I think that’s a good plan.
Many members here have asked about different grants and programs, the pauses, the freezes. It’s been particularly frustrating in Alaska, when we hear there’s been a hold up in terms of the grant award. We’ve got just a limited construction season. It’s just hard. Even if not choked by ice, you might have a barge that comes up with your materials for a project, maybe once, maybe twice a season, and so it can push a project back, not just months, but by another season – another year, perhaps multiple years. It’s been hard to provide some clarity to our communities on which grants are going to be awarded, which are just going through the review process that you shared with us, which grants have been terminated.
So, I’d ask if your folks could provide a list of what’s actually been paused for review versus what has been terminated. I think we’ve heard, for instance, on the EJ (Environmental Justice) grants, that one has been perhaps more clear, but there are a lot in between. And I think it would help our communities if there was more certainty as to what has actually been terminated versus what is still in the pipeline for review. So, I’d ask for your help on that.
Zeldin: Absolutely, Madam Chair, and we will continue to be distributing funding appropriated by Congress as we go through the rest of the fiscal year that will include funds for your great, great state, and we look forward to working with you on the process. As you know, when the President first came in, there was an administration-wide pause that was lifted. The pause that was then instituted for EPA was more specific to some of the Inflation Reduction Act programs. There was a Clean School Bus program concern that was that was raised early in the administration, when Lion Electric (Company) and their bankruptcy issue caused some questions to be asked to make sure that the concerns with Lion Electric (Company) were it was just specific to Lion Electric (Company). And as it relates to the grants that were that were canceled, that’s something that if you have any questions about what was included in that we’re happy to answer any individual questions.
Murkowski: Good, okay, we’ll work with you on that list.
Third line of questions from Murkowski
Murkowski: The operating plan for FY25 we received. It’s very much in line with the previous year’s funding level for each line item. There’s a lot of changes that that have been discussed, but it sounds like you are committing to spending the funds as delineated in the agency’s spend plans. And I guess my ask to you is, if that’s not going to be the case, that the subcommittee receive a reprogramming request so that we basically follow the process if, in fact, we’re not doing the agency is not doing this spend out as we have anticipated, as these small communities understand them.
I just have two very quick follow ups. One is very easy for you, because we’ve discussed it at length, but it is a significant issue in my state when it comes to contaminated lands. The history that I have shared with you of Alaska Natives receiving their settlement of lands, being conveyed by the federal government. And basically, they were conveyed tainted lands, lands that were contaminated by various actions of federal agencies, whether it’s the land managers, or the Department of Defense. And so, we have made some good progress with EPA. And believe me, this is not EPA’s is fault or liability for the contamination. It’s the federal governments. But what we have learned is that the EPA is uniquely qualified to help us solve this issue. Over the past couple years, there’s been roughly $20 million in funding that has been directed to contaminated lands, and the agencies have been doing some really good work. I just need your commitment that we’re going to continue with this. $20 million, unfortunately, doesn’t even get the first project cleanup. We know that that these are expensive, but it is an obligation. It is a liability of our government, and we owe it, whether it’s to Alaska Natives as conveyance of their settlement, or to others. And I know that when we’re talking (EPA) Superfunds, Brownfields, contaminated lands, we just have so much work to do here. So, know that you got cooperation on my level here.
Zeldin: Yes, Madam Chairwoman, I look forward to visiting over the course of the next couple of weeks in Alaska. Might be able to have the opportunity to hear about, see about, see this firsthand, and I will, with regards to all appropriations, make sure that we are fulfilling our obligations under the law. So, if Congress appropriates the funds, we’ll make sure that it’s spent.
Murkowski: Very good.
PFAS is something that we talk a lot about in Interior Appropriations Subcommittee. Last month, you announced that EPA will “tackle PFAS from all of EPA’s program officers, advancing research and testing, stopping PFAS from getting into drinking water systems, holding polluters accountable, and providing certainty for passive receivers. You said this was just the beginning of the work that EPA is going to do to tackle PFAS, which I certainly appreciate, and I know most everyone up here does.
Can you tell me whether the operating plan and the skinny budget requests, whether they actually reflect this kind of full forward push on PFAS, and whether it includes the $10 billion that the Bipartisan Infrastructure Law funding provided to take on PFAS contamination. I’m looking at this skinny budget, and I’m saying, good for you, let’s go on PFAS. But I’m worried about making sure that we’re actually budgeting to do so, and I’m also worried about whether or not with the RIFs that we have seen to date, as well as what is anticipated about perhaps an additional fork in the road, whether we’re going to be able to do the job. So again, this is something where you’re going to have good support from people in this committee for the initiative. But do you have the budget, and do you have the people?
Zeldin: Senator, we’re actually adding people into this effort inside of the Office of Water. As you noted, this spans multiple program offices at EPA. A lot of the PFAS work is done inside of the Office of Water. The reorganization announcement that we made a couple weeks ago includes boosting that effort inside of the Office of Water. The press release from April 28 that you referenced included a lot of different actions that we plan on taking, and everything that the agency has announced is already factored into the skinny budget that is before the committee today.
Murkowski: And so, let me just ask more directly, whether or not you’re concerned that the RIFs or the deferred resignation is going to impact your ability to execute, whether it’s on the PFAS side or contaminated lands, or any number of issues that you’ve heard here from members.
Zeldin: No, Madam Chair. This is a very important priority of ours at EPA. When I was in Congress, I was a member of the PFAS Task Force. I had voted for the PFAS action act, when I was a member of the House. I represented the district that had all sorts of different PFAS contamination issues. This is something that, in many respects, started during President Trump’s first term in office, and has continued to progress since. And we’re going to make sure that we’re hitting the ground running. That’s included in the April 28 announcement, but as we noted in that announcement, that’s just some of the many decisions and important work that’s before us. It is a very high priority.
Murkowski: So, you’ve spoken to the adequacy to meet the PFAS mission. Are you concerned about your numbers EPA wide to do your overall mission, not just specific to PFAS, but with everything else that you’re looking at? Because the reduction in staffing, is very significant, you’ve got to admit that. And so, you’ve got a big task, and we want you to be able to execute on that. So, just want to hear from you whether you have any concerns about your staffing levels right now.
Zeldin: Madam Chair, we are going to fulfill all statutory obligations. One of the things that was a surprise to me coming into the position was just how many people who are employees at the agency were not working on any statutory obligation at all. And I also want to say that there are a lot of amazing, dedicated employees at EPA. The American public might feel disconnected from agency employees who might be working in Washington, D.C., but there are a lot of people who have been there for a long time. They believe in the agency mission. They work hard every single day. One of the reforms we brought in coming in is ending COVID year remote work. And it’s great to hear noise in the building, to see the foot traffic, and to see people being productive and collaborative. But if anyone out there was tuning in and they don’t know what the agency looks like, it’s filled with a lot of amazing, dedicated workers who believe in the agency’s mission, and we’re going to work hard to make the public proud.
Murkowski: Well, I’m glad that you’ve acknowledged your workforce, because I think you do have people who are good public servants. They’re proud of the work they do, and they’re the work that they do has value. And we want to recognize that.
Closing Remarks
Murkowski: We will have further discussion about so many of these issues: the reorganization, what we’re seeing with the grants. But I appreciate, Administrator Zeldin, you appearing before the committee, responding to our questions. We will hold the record open until May 21 for additional questions from members and would look forward to your responses to those as well.
And with that, the committee stands adjourned – we’ve got to vote!

MIL OSI USA News –

May 16, 2025

MIL-OSI USA: Murkowski Reinforces Alaska Health Priorities to HHS Secretary

US Senate News:

Source: United States Senator for Alaska Lisa Murkowski
05.15.25
Washington, DC – Yesterday, U.S. Senator Lisa Murkowski (R-AK) engaged with Health and Human Services Secretary Robert F. Kennedy Jr. to discuss the reorganization of HHS programs that assist vulnerable Alaskans including Low-Income Home Energy Assistance Program (LIHEAP), National Institute for Occupational Safety and Health (NIOSH), Head Start, and community-based programs that support survivors of domestic violence.
Watch Senator Murkowski’s opening statement here.
Read the Senator’s transcript below:
TRANSCRIPT
Murkowski: Thank you, Mr. Chairman. Mr. Secretary, welcome, good to see you. I want to talk a little bit about the HHS reorganization on some of the programs that impact Alaska’s most vulnerable populations. I sent you a note letting you know that just after this hearing, I’m going to be chairing a Senate Committee on Indian Affairs [hearing] specifically examining HHS Tribal programs that are outside of IHS [Indian Health Service]. I really thank you for your early efforts to exempt IHS healthcare providers from the RIFs [reductions in force], that was very important.
But, I’ve also heard concerns from Tribal leaders on the impacts of RIFs to key HHS programs serving their communities. So, I know you’re going to have some of your folks tuning in on that, and I really appreciate that. But some of the other reductions that we’re looking at within your budget do have significant consequences to a state like mine.
One is the LIHEAP program, the low-income energy assistance. For us it’s not a budget line item. You’ve been to Alaska. You know that the temperatures there can get really, really tough. [LIHEAP] keeps people from freezing to death in their homes.
Another program is NIOSH, and I know that HHS had rescinded a number of those employees, that was great news. But employees that received RIF notices for the program were not rescinded in the NIOSH center for Marine Safety and Health Studies. So, this is a big deal for our commercial fishing safety. It could effectively leave our fishing fleet out of compliance with Coast Guard safety [regulations], so we’re watching that very, very carefully. And then again, shared focus here on making sure that our children are as healthy as they possibly can be. I want to look to ways that we can strengthen and not eliminate the Head Start program.
Kennedy: You’re talking about the NIOSH program? You should talk to me about that. As you know, that’s something that I’m deeply concerned with, with the commercial fisheries. So, we should talk about it. Let’s work for the solution.
Murkowski: Got it. I am with you right there.
Let me ask about domestic violence and sexual assault funding. Right now, I’m talking and I’m receiving a lot of incoming from our community-based domestic and sexual violence program operators. They’re really concerned about the delayed release of FY 25 funding, the absence of notices of funding opportunities, as well as proposed cuts or consolidations that might threaten the Office of Family Violence Prevention and CDC’s Division of Violence Prevention. So, you’ve got some programs there that are really foundational to domestic and sexual violence. They’ve been reauthorized with bipartisan support.
So, I’m going to enter into the record a letter from the National Task Force [to end Sexual and Domestic Violence], and it was sent to you yesterday, just urging the communication of concrete plans for releasing some of these funds. I want to raise that to your level, but I want to make sure that we’re sending the right signal to so many who are just really on the edge with, again, these community-based services that are helping the most vulnerable of the most vulnerable. So, we’ve got the funding that’s out there. It’s just delayed. We need help releasing that.

MIL OSI USA News –

May 16, 2025

MIL-OSI USA: Rep. Bera Leads Bipartisan Bill to Establish Inter-Parliamentary Trilateral Dialogue Between the United States, Japan and South Korea

Source: United States House of Representatives – Representative Ami Bera (D-CA)

Today, U.S. Representative Ami Bera, M.D. (D-CA-06), Ranking Member of the House Foreign Affairs Subcommittee on East Asia and Pacific, introduced the U.S.–Japan–ROK Trilateral Cooperation Act, bipartisan legislation to deepen cooperation between the United States, Japan, and the Republic of Korea (ROK).

Joining Congressman Bera in leading this effort are Representatives Gerry Connolly (D-VA-11), Joaquin Castro (D-TX-20), Joe Wilson (R-SC-02), Adrian Smith (R-NE-03) and Mike Kelly (R-PA-16). Bera, Connolly, Wilson and Kelly serve as co-chairs of the Congressional Korea Caucus, while Castro and Smith serve as co-chairs of the Congressional Japan Caucus.

“As we face growing threats in the Indo-Pacific, now is the time to invest in our closest alliances rooted in democratic values,” said Representative Bera. “This legislation builds on the momentum from the Camp David Summit by creating permanent channels of communication and coordination between our three legislative bodies. Routine inter-parliamentary dialogue will help ensure the United States, Japan and South Korea continue to meet shared challenges together—promoting a free, open, inclusive, resilient and healthy Indo-Pacific region that safeguards our mutual security and prosperity for decades to come.”

The U.S.–Japan–ROK Trilateral Cooperation Act establishes a formal U.S.–Japan–ROK Inter-Parliamentary Dialogue to address shared challenges.

The legislation reflects the commitments made at the August 2023 Camp David Trilateral Summit and underscores Congress’s role in turning those commitments into lasting policy and institutional cooperation.

“Trilateral cooperation between the United States, South Korea, and Japan is paramount to countering the PRC’s malign influence and to advancing our shared goal of a free and prosperous Indo-Pacific,” said Representative Connolly. “I am proud to join my colleagues today in introducing this important legislation that encourages consistent open dialogue between senior officials of our three nations and establishes a partnership to promote the strategic interests and values that the U.S., South Korea, and Japan share.”

“The U.S.-Japan-ROK Trilateral Cooperation Act will help continue the momentum of security cooperation between our three countries by establishing a multinational dialogue for American, Japanese, and Korean legislators to work together to pursue closer cooperation,” said Representative Castro.

“I am grateful to join my colleagues in affirming the importance of the renewed Trilateral Summit between the U.S., Republic of Korea, and Japan. Our joint commitment to a free, secure, and prosperous Indo-Pacific is ironclad, and I look forward to working with my colleagues to advance our shared goals and confront any challenges that come our way,” said Representative Wilson.

“I am honored to co-lead the U.S.-Japan-ROK Trilateral Cooperation Act. As threats from the Chinese Communist Party (CCP) and Democratic People’s Republic of Korea (DPRK) continue to grow, the United States and its allies must be prepared to maintain safety, security and prosperity for America and our Pacific allies. Congress has an obligation to the American people to protect its citizens from the CCP, DPRK, or other adversaries. Our alliance and friendship with the Republic of Korea and Japan is crucial,” said Representative Kelly.

“The U.S. has historic and critical partnerships with South Korea and Japan, and this is an important time to advance collaboration to our mutual benefit. Robust engagement to reinforce our shared values of freedom and security in the Indo-Pacific is necessary to meet the challenges of the twenty-first century. This legislation reflects these priorities and strong bipartisan support in Congress for fostering these valuable relationships. I am grateful to Rep. Bera and my other colleagues for working together to introduce it,” said Representative Smith.

Congressman Bera has consistently worked to strengthen U.S. foreign policy engagement in the Indo-Pacific and reinforce America’s role as a reliable ally. This legislation builds on his longstanding efforts to enhance diplomatic capacity, counter economic coercion and promote regional stability.

MIL OSI USA News –

May 16, 2025

MIL-OSI USA: Rep. Clyde Honors Class of 2029 U.S. Service Academy Appointees

Source: United States House of Representatives – Representative Andrew S. Clyde (R-GA)

Rep. Clyde Honors Class of 2029 U.S. Service Academy Appointees

Gainesville, May 15, 2025

GAINESVILLE, GA — Last week, Congressman Andrew Clyde (GA-09) hosted a reception at his Gainesville District Office to honor the six young men from Georgia’s Ninth District who received an appointment to one of the United States Service Academies: U.S. Air Force Academy, U.S. Naval Academy, U.S. Military Academy at West Point, and the U.S. Merchant Marine Academy.

“Each of the young men who received a U.S. Service Academy appointment embody impressive leadership, academic excellence, and steadfast patriotism,” said Clyde. “I wish Kieron, Tanner, Jayden, Minchan, Deacon, and Samuel the best of luck in attending their prestigious military academies and in serving our nation. I’m confident they will continue making the Ninth District proud in their future endeavors.”

Rep. Clyde Honors Class of 2029 U.S. Service Academy

Nominee Kieron McCormack

Rep. Clyde Presents Certificate of Congressional Commendation to Kieron McCormack for Receiving an Appointment to the U.S. Naval Academy

The following candidates received an appointment to one of the U.S. Service Academies:

· Tanner Brannock | Mill Creek High School | U.S. Air Force Academy

· Jayden Ivaniciuc | University of North Georgia | U.S. Air Force Academy

· Minchan Kim | North Gwinnett High School | U.S. Military Academy at West Point

· Kieron McCormack | Buford High School | U.S. Naval Academy

· Deacon Shull | Gilmer County High School | U.S. Naval Academy

· Samuel Hegel | Georgia Military College | U.S. Merchant Marine Academy

Background

Each year, Congressman Clyde nominates eligible candidates for appointment to four of the five U.S. service academies: U.S. Military Academy (USMA), West Point, NY; the U.S. Naval Academy (USNA), Annapolis, MD; the U.S. Air Force Academy (USAFA), Colorado Springs, CO; and the U.S. Merchant Marine Academy (USMMA), Kings Point, NY. The fifth service academy, the U.S. Coast Guard Academy (USCGA), New London, CT, does not require a congressional nomination for appointment.

Students interested in seeking a future congressional nomination may find more information and apply HERE.

MIL OSI USA News –

May 16, 2025

MIL-OSI New Zealand: $577 million to support film and TV production

Source: NZ Music Month takes to the streets

The Government is providing certainty to New Zealand’s film industry by providing the funding needed to sustain the International Screen Production Rebate, Economic Growth Minister Nicola Willis announced today.

“This funding will help bring investment, jobs and income to New Zealand, boosting our economic growth.

“We are sending a clear message to the world: New Zealand is the best place in the world to make movies. Bring your productions here to take advantage of our talent and locations.

“The Budget increase of $577 million across this year and the next four takes total funding for the rebate scheme to $1.09 billion over the forecast period, better reflecting expected demand for the scheme. Settings remain unchanged,” Nicola Willis says.

“The rebate scheme is working and we want New Zealand’s film industry to know the Government is backing them to grow into the future.

“At last count our screen sector provided work for about 24,000 people and generated about $3.5 billion in annual revenue.

“While industry incentives are not generally our favoured approach, the reality is we simply won’t get the offshore investment in our highly successful screen sector without continuing this scheme,” Ms Willis says.

“New Zealand competes with more than 100 territories world-wide that provide screen incentives, including countries like Australia, Canada and the United Kingdom that provide more generous incentives than ours.

“Eligible productions can access a 20 per cent cash rebate on qualifying New Zealand production expenditure where production costs are more than $15 million for feature films and $4 million for TV productions.

”A further 5 per cent rebate is available to productions spending more than $30 million which meet additional criteria for industry and economic growth.

“Inbound productions invested nearly $7.5 billion in New Zealand in the past 10 years, supported by $1.5 billion in rebate payments.

“Following a review of the rebate settings completed in late-2023, 10 big international productions have been attracted here, including eight from the major Hollywood studios. They include A Minecraft Movie, the second highest-grossing film of 2025 so far, and Taika Waititi’s Klara and the Sun now in production.

“Along with investment and jobs, New Zealand has benefited from acquiring a highly skilled screen industry workforce. Film production companies provide work for thousands of people and create fantastic opportunities for young New Zealanders.

“The Government will continue to work with the New Zealand Film Commission to ensure we continue to attract high-value productions from around the world.”

Notes for editors

Through Budget 2025, the Government is increasing baseline funding for the New Zealand Screen Production Rebate – International so it better reflects current forecast demand for the rebate.
Previously the Government was regularly called on to provide time-limited funding on top of baseline funding for the scheme.
The changes mean that funding for 2024/25 is increasing to $250 million, and to $210 million from 2025/26 onwards, which better reflects the expected costs of the rebate based on registered productions and current forecast demand.

MIL OSI New Zealand News –

May 16, 2025

MIL-OSI USA: Boozman Calls for Better Infrastructure Investment in Rural America

US Senate News:

Source: United States Senator for Arkansas – John Boozman
WASHINGTON—U.S. Senator John Boozman (R-AR) questioned U.S. Department of Transportation Secretary Sean Duffy on his plans to help rural communities in Arkansas and across the country maintain important transportation services and secure funding for critical infrastructure projects.
The senator reiterated the importance of the Essential Air Service (EAS) and Contract Towers programs, which he has long supported for their success collaborating with private industry to serve rural residents.
“I know you know that, coming from the part of the country that you represented,” Boozman said.
The EAS program helps connect smaller communities to regional and national transportation hubs while the Contract Tower program, in which five Natural State airports participate, provides high quality, cost-effective and critical air traffic control services that enhance safety, improve operations and deliver significant Federal Aviation Administration cost-savings.

Boozman additionally urged greater attention to the persistent problem rural communities face when competing for infrastructure investments.
“The most recent census revealed that more than half of the counties across the nation saw a population decline. While rural America’s population is declining, its infrastructure remains just as vital in our interconnected communities. Urban and suburban projects are often given priority,” Boozman said.
“You have to pay attention to it. You have to understand it. And it’s having people from rural America fight for it. I think that’s critical,” Duffy responded. “On the discretionary grants, there’s tools and help that’s offered to smaller communities to try to access additional resources, but it goes to the point that this has become so complicated. What we’re going to work on is, how can we make this process simpler?”
“The ability to apply is so complex, so complicated. You’re talking about spending thousands of dollars for grant writers. That’s something we’ve simply got to concentrate on. Because it does make it very, very difficult for our small communities,” Boozman said.
The senator also raised the benefits of adopting emerging technologies to plan, build and maintain infrastructure.
“From advanced digital construction management systems to automated inspection tools like drones and remote sensing, these innovations can help address workforce shortages, improve project delivery and enhance safety across our transportation network,” Boozman said.
Duffy assured the senator that he and the department are eager to embrace innovation.
“Sometimes we’re thought of as hard hats and light-reflecting vests. I am in favor of exploring all options that can reduce our costs, increase safety. I do think we are at the cusp of a technological revolution in regard to the way that people move, and our products move. We have to get it right,” Duffy explained.

MIL OSI USA News –

May 16, 2025

MIL-OSI USA: Hagerty Introduces Joel Rayburn and Michael DeSombre, Trump’s Nominees to be Assistant Secretaries of State

US Senate News:

Source: United States Senator for Tennessee Bill Hagerty
WASHINGTON—Today, United States Senator Bill Hagerty (R-TN) introduced his former staffer, Joel Rayburn, President Donald Trump’s nominee to be Assistant Secretary of State for Near Eastern Affairs, and Ambassador Michael DeSombre, President Donald Trump’s nominee to be Assistant Secretary of State for East Asian and Pacific Affairs, during a Senate Foreign Relations Committee confirmation hearing.

*Click the photo above or here to watch*
Remarks as prepared for delivery:
Chairman Risch and Ranking Member Shaheen, thank you for holding this important nominations hearing.
I am honored to introduce two exceptionally qualified nominees this morning, my good friends—
Joel Rayburn, President Trump’s nominee to be Assistant Secretary of State for Near Eastern Affairs, and
Ambassador Michael DeSombre, President Trump’s nominee to be Assistant Secretary of State for East Asian and Pacific Affairs.
Let me first turn to Joel.
Joel Rayburn’s nomination comes at a pivotal time for the United States in the Middle East and North Africa.
While there are many challenges in the region—including Iran and Hamas, Hezbollah, and other foreign terrorists organizations that Iran sponsors—our Nation also has enormous opportunities to strengthen our relationships with key Allies and partners, as the President’s trip to Middle East this week has powerfully illustrated.
At this critical juncture, I believe no one is better qualified to be the Assistant Secretary of State responsible for this region than Joel Rayburn.
As an avid historian who has served in a variety of leadership roles related to the Middle East, Joel is an expert in the region’s culture, its history, and the many other factors that will determine the success of our policy there.
Joel is a proud military veteran who has shown he is committed to public service on behalf of our great Nation.
After graduating from West Point in 1992, Joel went on to serve as an artillery and intelligence officer in the U.S. Army for over 26 years.
During his distinguished military career, Joel was deployed to the Middle East multiple times, giving him the opportunity to hone his knowledge of the region and its languages as well as his diplomatic skills.
From 2007 to 2011, for example, Joel worked for General David Petraeus as a strategic intelligence advisor in Iraq and Afghanistan.
In President Trump’s first term, Joel served on the National Security Council as Senior Director for Iran, Iraq, Syria, and Lebanon.
Joel served then as Deputy Assistant Secretary of State for Levant Affairs and, concurrently, as Special Envoy for Syria from 2018 to 2021—roles that he used to improve U.S. policy for dealing with the repressive regime of then-Syrian dictator Bashar al-Assad.
More recently, Joel served on my Senate staff as my advisor for Middle Eastern affairs—and I was able to see firsthand just why the military and the White House trusted him so much.
Joel’s sound advice, borne from his lifetime of focus on the region, helped me immensely—as I know it will help the State Department and the people of the United States.
More important, I saw Joel as a wonderful father—someone with the heart and humility to pay it forward to the next generation through selfless public service.
Joel could not be better qualified to be the next Assistant Secretary of State for Near Eastern Affairs and I urge my colleagues on this Committee to move quickly on his nomination.
Let me now turn to another colleague and friend, Ambassador Michael DeSombre.
I am excited that President Trump tapped Michael as his nominee to be the Assistant Secretary of State for East Asian and Pacific Affairs.
Michael and I both served as U.S. Ambassadors in Asia during President Trump’s first term.
The Trump Administration rightly identifies the Indo-Pacific as a top priority for U.S. foreign policy.
This region contains 4.3 billion people—about 60 percent of the world’s population—and is responsible for almost two-thirds of global maritime trade.
The region is also home both to some of America’s closest Allies and partners, as well as to many of our most serious threats.
If confirmed, Michael will be at the forefront of U.S. efforts to address the significant challenges in the region while also pursuing tremendous opportunities critical to our economic prosperity and national security.
As someone who has worked in East Asia as both a businessman and a diplomat, I speak from experience when I say Michael is the right person for this role.
Building on his education at Stanford and Harvard in economics, law, and East Asian Studies, Michael’s significant experience in the region makes him exceptionally qualified for this role.
As a business leader in Asia, Michael advised multinational corporations on complex cross-border transactions and worked issues related to U.S. national security.
And as a philanthropist, Michael led initiatives focused on the education, healthcare, and protection of kids that benefitted tens of thousands of children in the region.
In addition to his success as a businessman and philanthropist in Asia, Michael is also a successful diplomat.
As U.S. Ambassador to Thailand during President Trump’s first term, Michael used his business background and skillset to create mutual economic opportunities that brought the American and Thai economies closer together.
In all, Michael has spent more than two decades of his life in Asia.
He speaks Mandarin fluently, and also is familiar with the Korean and Japanese languages.
If confirmed, Michael will once again use his experience and knowledge to strengthen our diplomatic relationships and advance our nation’s interests in the region.
Mr. Chairman, thank you again for the opportunity to introduce my friends and former colleagues, Joel Rayburn and Michael DeSombre, and I encourage this Committee to support their nominations.
Thank you for your time this morning.

MIL OSI USA News –

May 16, 2025

MIL-OSI USA: Hagerty, Colleagues Reintroduce Legislation to Block Unconstitutional Tracking of Gun Store Purchases

US Senate News:

Source: United States Senator for Tennessee Bill Hagerty

WASHINGTON—This week, United States Senator Bill Hagerty (R-TN), a member of the Senate Banking Committee, led his colleagues in reintroducing the Protecting Privacy in Purchases Act, legislation to protect gun store customers by blocking unconstitutional surveillance via Merchant Category Codes (MCCs) that unlawfully track gun store purchases. Representative Riley Moore (R-WV-03) has introduced companion legislation in the U.S. House of Representatives.

Co-sponsors of the legislation include Senators Jim Justice (R-WV), Lindsey Graham (R-SC), Jim Risch (R-ID), Cynthia Lummis (R-WY), Bill Cassidy (R-LA), John Hoeven (R-ND), Ted Budd (R-NC), Steve Daines (R-MT), Mike Lee (R-UT), Pete Ricketts (R-NE), Kevin Cramer (R-ND), Mike Crapo (R-ID), Rick Scott (R-FL), Markwayne Mullin (R-OK), Deb Fischer (R-NE), and John Barrasso (R-WY).

“Merchant category codes should never be used to track and surveil gun store customers,” said Senator Hagerty. “If this alarming overreach isn’t stopped, radical leftists won’t just target gun owners—they’ll weaponize the financial system against anyone who makes a purchase that doesn’t conform to their agenda. This legislation is critical to preventing the politicization of MCC codes and securing the civil liberties of law-abiding Americans and the Second Amendment.”

“Any attempt to collect data on Americans simply exercising their God-given rights is wrong, and I won’t stand for it. I’m proud to have led this fight at the state level as West Virginia State Treasurer – where we were the first in the nation to codify this policy that protects our Second Amendment rights,” said Congressman Riley Moore. “I’m proud to be leading this fight with Reps. Hudson and Barr in the House and honored to have Senator Hagerty leading it in the Senate.”

“Gun control proponents, including those in Congress, have already admitted the use of a firearm retailer-specific Merchant Category Code is intended to monitor and approve firearm and ammunition purchases,” said Lawrence G. Keane, NSSF Senior Vice President & General Counsel. “Senator Hagerty’s bill would prohibit the government from creating watchlists or determining when law-abiding citizens may exercise their Second Amendment rights, which starts with legally purchasing a firearm or ammunition. No American should be concerned that banks or the federal government are employing this Orwellian antigun scheme to monitor the exercise of their Second Amendment rights when they lawfully purchase firearms or ammunition products. NSSF thanks Senator Hagerty for his principled leadership to stand up for Second Amendment rights and against gun control special interest groups and big government lawmakers who want to monitor and deny lawful transactions by law-abiding Americans. Americans should worry about what’s in their wallet, not who’s in their wallet.”

Background:

The Protecting Privacy in Purchases Act builds upon Hagerty’s commitment to defending Americans’ constitutional rights from politicized and abusive overreach.

In September 2022, Hagerty criticized the President and CEO of Amalgamated Bank for its efforts to use MCC codes to target gun store customers.

In February 2024, Hagerty grilled former Treasury Secretary Janet Yellen on reports that the Department’s Financial Crimes Enforcement Network coordinated with financial institutions to monitor for “extremist indicators,” including lawful transactions at stores that sell firearms.

Last Congress, Hagerty introduced the Protecting Privacy in Purchases Act in response to revelations that MCC Codes were used to implement unconstitutional surveillance on gun store consumers.

Full text of the Protecting Privacy in Purchases Act can be found here.

MIL OSI USA News –

May 16, 2025

MIL-OSI: Sky Quarry Reports First Quarter 2025 Financial Results

Source: GlobeNewswire (MIL-OSI)

WOODS CROSS, Utah, May 15, 2025 (GLOBE NEWSWIRE) — Sky Quarry Inc. (NASDAQ: SKYQ) (“Sky Quarry” or “the Company”), an integrated energy solutions company committed to revolutionizing the waste asphalt shingle recycling industry, today announced its financial and operational results for the three months ended March 31, 2025.

Key Financial and Operational Highlights

Generated $6.3 million in Q1 revenue, a 50% increase from Q4 2024.
Signed a Letter of Intent with R & R Solutions, the only permitted asphalt shingle recycler in New Mexico, to explore the feasibility of establishing a modular waste-to-energy site in the Southwest.
Executed a Letter of Intent with Southwind RAS, a leading recycler in the Midwest, to collaborate on regional facility deployment and feedstock supply.
Engaged TAR360 to accelerate the company’s growth trajectory, optimize internal processes, and support execution across key operational initiatives.

Commentary by David Sealock, Chairman & Chief Executive Officer, and Darryl Delwo, Chief Financial Officer of Sky Quarry

“We are pleased with the continued growth across our operations and the progress we’ve made in the first quarter of 2025 toward executing our waste-to-energy strategy, which is central to our mission of transforming recycled asphalt shingles into sustainably produced fuels and other valuable materials. At PR Spring, asset upgrades are nearing completion, and once commissioned, the site will activate our fully integrated production model and enable commercial-scale output.

As part of our national expansion strategy, we signed non-binding Letters of Intent with Southwind RAS in the Midwest and R & R Solutions in the Southwest. These LOIs represent an early step in evaluating potential partnerships that could expand Sky Quarry’s geographic footprint and provide access to more than 1.5 million tons of asphalt shingle supply annually. If advanced, these relationships could unlock new revenue opportunities through facility development, expanded processing capacity, and the sale of high-value materials such as recycled liquid asphalt, blended fuels, and other products derived from waste asphalt shingles.

We’re seeing the impact of operational improvements made in 2024 at the Foreland Refinery, with a 50% increase in revenue from Q4 2024 to Q1 2025 as output stabilized and product volumes rebounded.

To build on this momentum, we engaged TAR360 to further optimize operations at Foreland. While we’re encouraged by recent performance gains, our shared goal is to increase throughput by up to 400% over time, scaling from our current 20,000 barrels per month to as much as 100,000. Achieving this level of production would enhance operating leverage, expand margins, and drive stronger profitability.

With these improvements and additional efficiencies underway, we believe Foreland is positioned to play a key role in meeting growing fuel demand across the Western U.S. California’s refining capacity is expected to decline by 21% in a single year due to major facility closures, while global price spreads and supply constraints are creating price dislocations that make local refining more competitive. As market conditions continue to evolve, we are executing with purpose by scaling production, improving performance, and positioning Sky Quarry for a strong 2025.”

Financial Results for the Three Months Ended March 31, 2025

Total revenues for the first quarter ended March 31, 2025, were approximately $6.3 million, down from $11.0 million in the same period of 2024. This decline was primarily driven by ongoing challenges in reestablishing supply streams following the Foreland Refinery outage and refurbishment in mid-2024. In addition, lower commodity prices contributed to the decrease, with WTI crude falling from $87 per barrel in April 2024 to $71 per barrel at the end of Q1 2025.

Gross profit for the quarter was negative $726,000, compared to a gross profit of $569,000 in the prior-year period.

Total operating expenses increased to $1.94 million in Q1 2025, up from $1.61 million in Q1 2024, reflecting higher general and administrative costs, non-cash share-based compensation, and depreciation.

As a result, the Company reported a net loss of $3.3 million for the first quarter of 2025, compared to a net loss of $2.5 million in the same period last year.

Net cash used in operating activities for the three months ended March 31, 2025, was approximately $2.0 million, compared to $1.2 million for the same period in 2024.

About Sky Quarry Inc.

Sky Quarry Inc. (NASDAQ:SKYQ) and its subsidiaries are, collectively, an oil production, refining, and a development-stage environmental remediation company formed to deploy technologies to facilitate the recycling of waste asphalt shingles and remediation of oil-saturated sands and soils. Our waste-to-energy mission is to repurpose and upcycle millions of tons of asphalt shingle waste, diverting them from landfills. By doing so, we can contribute to improved waste management, promote resource efficiency, conserve natural resources, and reduce environmental impact. For more information, please visit skyquarry.com.

Forward-Looking Statements

This press release may include ”forward-looking statements.” All statements pertaining to our future financial and/or operating results, future events, or future developments may constitute forward-looking statements. The statements may be identified by words such as “expect,” “look forward to,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “estimate,” “will,” “project,” or words of similar meaning. Such statements are based on the current expectations and certain assumptions of our management, of which many are beyond our control. These are subject to a number of risks, uncertainties, and factors, including but not limited to those described in our disclosures. Should one or more of these risks or uncertainties materialize or should underlying expectations not occur or assumptions prove incorrect, actual results, performance, or our achievements may (negatively or positively) vary materially from those described explicitly or implicitly in the relevant forward-looking statement. We neither intend, nor assume any obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated. You are urged to carefully review and consider any cautionary statements and the Company’s other disclosures, including the statements made under the heading “Risk Factors” and elsewhere in the Company’s Form 10-K as filed with the SEC on March 31, 2025. Forward-looking statements speak only as of the date of the document in which they are contained.

Investor Relations
Jennifer Standley
Director of Investor Relations
Ir@skyquarry.com

Company Website
www.skyquarry.com

Sky Quarry Inc. Consolidated Balance Sheets As of March 31, 2025 and December 31, 2024

	March 31, 2025		December 31, 2024

ASSETS

Current assets:
Cash	$	213,000	$	385,116
Accounts receivables		1,758,159		1,123,897
Prepaid expenses and other assets		641,427		339,124
Inventory		2,103,379		3,149,236
Total current assets		4,715,965		4,997,373

Property, plant, and equipment		5,942,782		6,160,318
Oil and gas properties		8,832,356		8,534,967
Restricted cash		798,851		2,929,797
Right-of-use asset		1,091,656		1,115,785
Goodwill		3,209,003		3,209,003

Total assets	$	24,590,613	$	26,947,243

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities:
Accounts payable and accrued expenses	$	3,233,613		$	4,046,319
Current portion of operating lease liability		81,775			38,422
Current portion of finance lease liability		16,626			16,120
Warrant liability		184,087			459,067
Lines of credit		2,328,127			1,260,727
Current maturities of notes payable		6,164,310			6,578,017
Total current liabilities		12,008,538			12,398,672

Notes payable, less current maturities, net of debt issuance costs		1,999,999			2,000,560
Operating lease liability, net of current portion		15,613			77,824
Finance lease Liability, net of current portion		987,018			971,690
Total Liabilities		15,011,168			15,448,746

Commitments and contingencies

Shareholders’ Equity:
Preferred stock $0.001 par value: 25,000,000 shares authorized; 0 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively		–			–
Common stock $0.0001 par value: 100,000,000 shares authorized: 21,260,924 and 19,027,208 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively		2,126			1,903
Additional paid in capital		37,088,388			35,674,391
Accumulated other comprehensive loss		(209,286	)		(209,708	)
Accumulated deficit		(27,301,783	)		(23,968,089	)
Total shareholders’ equity		9,579,445			11,498,497

Total liabilities and shareholders’ equity	$	24,590,613		$	26,947,243

Sky Quarry Inc. Consolidated Statements of Operations and Comprehensive Loss For the Periods Ended March 31, 2025 and 2024

	Three Months Ended March 31, 2025			Three Months Ended March 31, 2024
Net sales	$	6,332,967		$	10,952,330

Cost of goods sold		7,059,059			10,382,881
Gross Margin		(726,092	)		569,449

Operating expenses:
General and administrative		1,935,457			1,607,884
Depreciation and amortization		2,028			1,472
Total Operating expenses		1,937,485			1,609,356

Loss from operations		(2,663,577	)		(1,039,907	)

Other income (expense):
Interest expense		(872,468	)		(1,308,445	)
Loss on extinguishment of debt		(85,753	)		(108,887	)
Gain on warrant valuation		274,980			–
Other income (expense)		7,477			(5,306	)
Gain on sale of assets		5,647			–
Other expense, net		(670,117	)		(1,422,638	)

Loss before provision for income taxes		(3,333,694	)		(2,462,545	)

Provision for income taxes		–			–

Net loss		(3,333,694	)		(2,462,545	)

Other comprehensive income (loss)
Exchange gain (loss) on translation of foreign operations		422			(8,134	)

Net loss and comprehensive loss	$	(3,333,272	)	$	(2,470,679	)

Loss per common share
Basic and diluted	$	(0.16	)	$	(0.15	)
Weighted average shares outstanding
Basic and diluted		21,264,725			16,334,862

Sky Quarry Inc. Consolidated Statements of Cash Flows For the Three Months Ended March 31, 2025 and 2024

		2025			2024

CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(3,333,694	)	$	(2,462,545	)
Adjustments to reconcile net loss to cash used in operating activities:
Share based compensation		78,880			270,176
Depreciation and amortization		242,004			164,534
Amortization of debt issuance costs		765,793			1,166,227
Amortization of right-of-use asset		24,129			21,952
Gain on revaluation of warrant liabilities		(274,980	)		–
Loss on extinguishment of debt		56,660			108,887
Gain on sale of assets		(5,647	)		–

Changes in operating assets and liabilities:
Accounts receivable		(634,263	)		(766,259	)
Prepaid expenses and other assets		(302,302	)		(323,750	)
Inventory		1,045,857			203,235
Accounts payable and accrued expenses		373,889			371,043
Operating lease liability		450			21,952
Net cash used in operating activities		(1,963,224	)		(1,224,548	)

CASH FLOWS FROM INVESTING ACTIVITIES

Proceeds from sale of assets		14,060			–
Purchase of exploration and evaluation assets		(297,389	)		(144,964	)
Purchase of property, plant, and equipment		(32,881	)		(282,702	)
Net cash used in investing activities		(316,210	)		(427,666	)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds on lines of credit		5,339,736			10,641,448
Payments on lines of credit		(4,272,336	)		(11,638,704	)
Proceeds from note payable		143,237			9,820,288
Payments on note payable		(1,231,214	)		(5,300,608	)
Warrants Issued (net against payment of debt issuance costs)					–
Debt discount on note payable					(1,970,936	)
Payments on finance lease		(3,473	)		(19,851	)
Proceeds on issuance of preferred stock					197,500
Preferred stock offering costs					(40,870	)
Proceeds on issuance of common stock					19,492
Common stock offering costs					–
Net cash provided by (used in) financing activities		(24,050	)		1,707,755

Effect of exchange rate on cash		422			(8,134	)

Increase (decrease) in cash and restricted cash		(2,303,062	)		47,407
Cash and restricted cash, beginning of the period		3,314,913			4,680,836

Cash and restricted cash, end of the period	$	1,011,851		$	4,728,243

The MIL Network –

May 16, 2025

MIL-OSI: Red White & Bloom Brands Provides Update on Status of Management Cease Trade Order

Source: GlobeNewswire (MIL-OSI)

TORONTO, May 15, 2025 (GLOBE NEWSWIRE) — Red White & Bloom Brands Inc. (CSE: RWB) (“RWB” or the “Company”) is providing this update on the status of a management cease trade order granted on May 1, 2025 (the “MCTO”) by the British Columbia Securities Commission under National Policy 12-203 – Management Cease Trade Order (“NP 12-203”).

On May 1, 2025, the Company announced that, for reasons disclosed in the news release, there would be a delay in the filing of its financial statements and accompanying management’s discussion and analysis for the fiscal year ended December 31, 2024 (the “Annual Filings”) beyond the period prescribed under applicable Canadian securities laws (the “Default Announcement”).

The Company reports that the audit continues to progress and the Company will provide a further update on the timing of its Annual Filings on or about May 30, 2025 if it has not filed prior to this date. The Company is also progressing on completion of its interim financial statements and accompanying management’s discussion and analysis for the first quarter ended March 31, 2025, and will provide a further update on or before May 30, 2025. Further updates on timing will be provided by the Company as necessary.

During the MCTO, the general investing public will continue to be able to trade in the Company’s listed common shares. However, the Company’s chief executive officer, president and chief financial officer will not be able to trade in the Company’s shares.

Other than as disclosed in this news release, there are no material changes to the information contained in the initial press release associated with the MCTO. The Company confirms that it intends to satisfy the provisions of NP 12- 203 and will continue to issue bi-weekly default status reports for so long as it remains in default of the Annual Filings requirement. These updates will include information regarding the progress of the Annual Filings and any material changes to the Company’s business, if any.

About Red White & Bloom Brands Inc.

Red White & Bloom Brands is a multi-jurisdictional cannabis operator and house of premium brands operating in the United States, Canada and select international jurisdictions. The Company is predominantly focusing its investments on major U.S. markets, including California, Florida, Missouri, Michigan, and Ohio in addition to Canadian and international markets.

Red White & Bloom Brands Inc.
Investor and Media Relations
Edoardo Mattei, CFO
IR@RedWhiteBloom.com
947-225-0503
Visit us on the web: https://www.redwhitebloom.com/.

X @rwbbrands

Facebook @redwhitebloombrands

Instagram @redwhitebloombrands

Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.

FORWARD LOOKING INFORMATION

Certain information contained in this news release may constitute “forward-looking information” or “forward-looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking information is often identified by the use of words such as “plans,” “expects,” “may,” “should,” “could,” “will,” “intends,” “anticipates,” “believes,” “estimates,” “forecasts,” or variations of such words and phrases, including the negative forms thereof, as well as terms such as “pro forma” and “scheduled,” and similar expressions that refer to future events or outcomes.

Forward-looking statements in this release include, without limitation, statements relating to the anticipated timing, review, completion, and filing of the Annual Filings; the expected duration of the MCTO; the Company’s ongoing operations; and the Company’s intention to issue bi-weekly default status updates.

Forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause actual results, performance, or achievements of the Company to differ materially from those expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, the risks associated with audit completion processes; regulatory reviews and approvals; market conditions; the Company’s financial condition and liquidity; the ability to achieve the anticipated benefits of the debt restructuring; and the risk that the Company may not be able to complete its Annual Filings within the timeframe currently anticipated.

There can be no assurance that such forward-looking statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

The Company disclaims any obligation to update or revise any forward-looking information contained herein, whether as a result of new information, future events, or otherwise, except as required by applicable securities laws.

THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS THE COMPANY’S EXPECTATIONS AS OF THE DATE OF THIS NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE LAWS.

The MIL Network –

May 16, 2025

MIL-OSI USA: Rep. Mike Levin Delivers House Floor Speech Demanding Congressional Stock Trading Ban

Source: United States House of Representatives – Representative Mike Levin (CA-49)

May 14, 2025

Rep. Levin speaks about pushing a ban on Congressional stock trading

Washington, D.C.- Today, Rep. Mike Levin (CA-49) delivered a speech on the House Floor demanding action on a Congressional stock trading ban, including a push to bring bipartisan legislation to the House Floor for a vote.

Watch the full House Floor speech. Full remarks below.

“M. Speaker, when I first started running for Congress a number of years ago, my wife and I sold all our individual stocks. And I made a commitment that if I were elected, I would not trade individual stocks while in office. Because being a Representative isn’t just a title. It’s a responsibility. And that responsibility is to serve the people, not our own financial interests.

“Let’s face it, too many Americans have lost faith in government. They wonder whether their elected officials are truly working for them. We cannot allow that doubt to grow. We have the power to help fix it.

“That is why I have long supported legislation to ban Members of Congress from trading individual stocks. And I am encouraged that we’re working together in a bipartisan way to get this done.

“I thank Representative Magaziner, Representative Roy, and others who have been working together for some time on this. We’ve got a lot of momentum.

“And today, as was said, Speaker Johnson said he supports a stock trading ban. Leader Jeffries supports a stock trading ban. And President Trump has said he would sign a stock trading ban into the law.

“Again, this is not a partisan issue. Poll after poll shows overwhelming support. Approximately 80 percent of Americans want Congress to pass a ban on Member stock trading. They want to know that their Representatives are here to serve the public — not to profit from their positions.

“Recent events have only made this more urgent. Last month, markets moved sharply after the reversal of tariffs that had been threatened. And just hours before that announcement, there were posts on social media. I don’t need to recount all that now.

“And we don’t know exactly who had advance notice of that decision or whether anybody acted on it, but that is exactly the problem. Americans should never, never have to wonder if public officials are using any sort of inside knowledge to enrich themselves.

“That is why we need to act. We need a law that says clearly and without exception: if you serve in Congress, you cannot trade individual stocks. No more gray areas. No more questions. Just clear rules that restore trust and put the public interest first.

“We have the support. We have the momentum. And we have a responsibility to get this done.

So, Speaker Johnson, please work with us. Allow a vote on a stock trading ban. Let’s begin the long process to restore confidence in this body. The time to act is now.

“Thank you, and I yield back.”

###

MIL OSI USA News –

May 16, 2025

MIL-OSI USA: Kaptur Stands Up for Military Children

Source: United States House of Representatives – Congresswoman Marcy Kaptur (OH-09)

Washington, DC – This week, Congresswoman Marcy Kaptur (OH-09) introduced the Care for Military Kids Act, a bipartisan bill to ensure that children of active duty servicemembers who are required to relocate for a deployment maintain their Medicaid coverage when moving across state lines. Specifically, this legislation would amend the Social Security Act to ensure that any dependent of an active duty servicemember currently receiving long-term care services through a state administered Medicaid plan will remain eligible should their family move due to relocation.

This bill was introduced alongside Congresswoman Jen Kiggans (VA-02) and is endorsed by the National Center for Learning Disabilities, Blue Star Families, Partners in PROMISE, The Learning Disabilities Association of America, Tricare for Kids Coalition, and Easterseals, Inc.

“Our servicemembers give so much to this nation, and sacrifice so much. This includes being far from home and loved ones, while frequently relocating due to their assignments. Which is why this May, during Military Appreciation Month, I am once again honored to reintroduce this crucial bipartisan legislation for our military families alongside Congresswoman Kiggans,” said Congresswoman Marcy Kaptur (OH-09). “The Care for Military Kids Act seeks to establish streamlined Medicaid and CHIP plans for these heroes and their families, regardless of where their service takes them. It is crucial that we get this bipartisan effort to address the needs of our military community and their families across the finish line. By providing clarity and consistency in residency determinations, we can ensure that our brave men and women in uniform, and their children receive the full support, and care they deserve.”

“As a Navy veteran and Mom of four, I understand firsthand the unique sacrifices military families make – especially those raising children with disabilities,” said Congresswoman Jen Kiggans (VA-02). “The Care for Military Kids Act ensures that no servicemember has to choose between answering the call of duty and making sure their child receives essential, life-sustaining care. This bipartisan bill is about fairness, dignity, and honoring the commitment we’ve made to support our military families, no matter where they’re stationed.”

“The Care for Military Kids Act represents a vital advancement in ensuring continuity of care for military children with complex medical needs,” said Kathy Roth-Douquet, CEO, Blue Star Families. “By standardizing state Medicaid residency requirements and maintaining waitlist positions across relocations, this legislation addresses a critical and long-standing gap in support for military families. We commend Congresswomen Kiggans and Kaptur for their leadership and commitment to those who serve our nation.”

“Medicaid plays a vital role in ensuring that students with disabilities have access to critical services and supports needed in school and educational settings,” said Cindy Cipoletti, Esq., CEO, The Learning Disabilities Association of America. “Our nation’s military families should not have to endure any disruption to these essential services simply because they relocate to another state in service to their country. Thank you to Representatives Kiggans and Kaptur for introducing this important legislation.”

“Partners in PROMISE is grateful for the leadership of Rep. Kiggans and Rep. Kaptur for their bipartisan efforts in introducing the Care for Military Kids Act,” said Michelle Norman, Executive Director and Founder. “This important provision will allow military families to retain critical healthcare services for their children with disabilities offered through Medicaid Waivers. Currently, military families are making tough choices—either living apart to keep their support or going without essential medical services to stay together. With this bill, we are investing in stronger military families, and as a result, a strong and ready military.”

Background:

You can find the full bill text here.

You can find a one pager on this bill here.

People with disabilities often need long-term care services that help with everyday activities, such as eating, walking, medical equipment management, and more.
Medicaid is the only government program that covers long-term care services for children with disabilities.
TRICARE does not cover long term care services, meaning children with disabilities covered by TRICARE cannot receive the care they need.
Military families often apply for Medicaid to cover these services. However, most military families are not eligible for Medicaid due to their income level, but can apply and be placed on a waitlist. Even those who do qualify are sent to the bottom of the waitlist when their parents who are active duty move to a new state.
The Care for Military Kids Act will ensure that our servicemembers’ children get the critical care they need by amending the Social Security Act to ensure that any dependent of an active duty servicemember currently receiving long-term care services through a state administered Medicaid plan will remain eligible should their family move due to relocation.

# # #

MIL OSI USA News –

May 16, 2025

MIL-OSI USA: Read More (Rep. Steube and Sen. Moody Introduce Tax Relief for Victims of Crimes, Scams, and Disasters Act)

Source: United States House of Representatives – Congressman Greg Steube (FL-17)

May 15, 2025 | Press ReleasesWASHINGTON — U.S. Representative Greg Steube (R-Fla.) and Senator Ashley Moody (R-Fla.) today introduced the Tax Relief for Victims of Crimes, Scams, and Disasters Act to restore the casualty and theft loss tax deduction for Americans who have suffered devastating losses from fraud, cybercrime, structural home failures, or natural disasters.Under current law, taxpayers can only deduct casualty and theft losses if the loss occurred in a federally declared disaster area. This recent restriction, which has been a burden on so many Florida seniors and families, is on a previously allowed deduction dating back to before the start of the federal income tax which allowed many victims to deduct losses on assets they no longer possess. The Tax Relief for Victims of Crimes, Scams, and Disasters Act restores this deduction and retroactively applies it for tax years 2018 through 2024, providing much-needed relief to victims of theft.This bill addresses the recent policy recommendations by National Taxpayer Advocate Erin M. Collins, who was appointed by Treasury Secretary Steven Mnuchin during the Trump Administration.“Hardworking Americans, especially seniors, who fall victim to scams, cybercrime, or disasters should not be forced to pay taxes on income they no longer have,” said Rep. Steube. “Victims of crime, calamity, and fraud deserve peace of mind as they work to regain their footing. This bill protects Americans who have lost everything by restoring fairness and common sense to the tax code.”“As hurricane season is around the corner, I will continue supporting policies that protect Floridians from scammers and fraudsters,” said Senator Moody. “My Tax Relief for Victims of Crimes, Scams and Disasters Act will provide commonsense tax relief for victims, often seniors, who have been financially devastated by scams, crimes, or destruction from disasters. This legislation will help folks get back on their feet when they experience hardship. When I was Attorney General of Florida, I made sure to fight for Floridians who fell victim to scams, and I will continue bringing this fight to D.C. so that folks have the protections they need.”The Tax Relief for Victims of Crimes, Scams, and Disasters Act is supported by the AARP, AICPA-CIMA, AMAC Action, American Land Title Association, CFP Board, The Elder Justice Coalition, Family Business Coalition, Financial Services Institute, Investment Advisers Association, the National Association of Consumer Advocates, National Association of Enrolled Agents, National Association of Realtors, Operation Shamrock, and National Association of Government Defined Contribution Administrators (NAGDCA).
“Family-owned businesses are built over generations, and when they fall victim to scams, disasters, or structural failures, the impact is devastating. Congressman Steube’s Tax Relief for Victims of Crimes, Scams, and Disasters Act restores a vital protection in the tax code that ensures these families aren’t taxed on income they’ve lost through no fault of their own. This is a common-sense targeted fix that reflects the realities family businesses face today.” —Palmer Schoening, Chairman of Family Business Coalition Background:Along with their work on the Tax Relief for Victims of Crimes, Scams, and Disasters Act, Representative Steube and Senator Moody have championed the needs of victims of natural disasters and scams. In the last Congress, Representative Steube’s bipartisan Federal Disaster Tax Relief Act was passed and signed into law. This casualty loss legislation delivered much-needed tax relief for victims of disasters across 48 states between 2021 and 2025. While serving as Florida Attorney General, Moody helped lead the fight to prevent cybercriminals from targeting senior citizens, including shutting down six cyber schemes in less than three months in 2024.
Read the full bill here.

MIL OSI USA News –

May 16, 2025

MIL-OSI USA: Mapping Mercury in San Francisco Bay

Source: US Geological Survey

San Francisco Bay has a long history of being subject to natural resources exploitation and pollution. Ongoing flux of contaminants into the bay, legacy pollution from the Gold Rush era and structural modifications still influence the natural ecosystem today. This project aims to map multiple forms (i.e. species) of mercury — one of the major contaminants in the bay — to help inform restoration…

Learn More

MIL OSI USA News –

May 16, 2025

MIL-OSI USA: SPC Tornado Watch 255

Source: US National Oceanic and Atmospheric Administration

Note: The expiration time in the watch graphic is amended if the watch is replaced, cancelled or extended.Note: Click for Watch Status Reports.
SEL5

URGENT – IMMEDIATE BROADCAST REQUESTED
Tornado Watch Number 255
NWS Storm Prediction Center Norman OK
515 PM CDT Thu May 15 2025

The NWS Storm Prediction Center has issued a

* Tornado Watch for portions of
Northern and Central Illinois
Far Northwest Indiana
Lake Michigan

* Effective this Thursday afternoon and evening from 515 PM until
1000 PM CDT.

* Primary threats include…
A few tornadoes and a couple intense tornadoes possible
Scattered large hail and isolated very large hail events to 3
inches in diameter likely
Scattered damaging winds likely with isolated significant gusts
to 75 mph possible

SUMMARY…Supercell thunderstorms will pose a threat for large to
very large hail this evening as they move east-northeastward. The
largest hailstones may reach up to 2-3 inches in diameter. A few
tornadoes are also possible, and a strong tornado may occur.
Otherwise, scattered severe/damaging winds should also be a threat,
especially if thunderstorms can congeal into clusters later this
evening.

The tornado watch area is approximately along and 70 statute miles
east and west of a line from 60 miles north northeast of Marseilles
IL to 35 miles west southwest of Champaign IL. For a complete
depiction of the watch see the associated watch outline update
(WOUS64 KWNS WOU5).

PRECAUTIONARY/PREPAREDNESS ACTIONS…

REMEMBER…A Tornado Watch means conditions are favorable for
tornadoes and severe thunderstorms in and close to the watch
area. Persons in these areas should be on the lookout for
threatening weather conditions and listen for later statements
and possible warnings.

OTHER WATCH INFORMATION…CONTINUE…WW 251…WW 252…WW
253…WW 254…

AVIATION…Tornadoes and a few severe thunderstorms with hail
surface and aloft to 3 inches. Extreme turbulence and surface wind
gusts to 65 knots. A few cumulonimbi with maximum tops to 500. Mean
storm motion vector 23035.

…Gleason

SEL5

URGENT – IMMEDIATE BROADCAST REQUESTED
Tornado Watch Number 255
NWS Storm Prediction Center Norman OK
515 PM CDT Thu May 15 2025

The NWS Storm Prediction Center has issued a

* Tornado Watch for portions of
Northern and Central Illinois
Far Northwest Indiana
Lake Michigan

* Effective this Thursday afternoon and evening from 515 PM until
1000 PM CDT.

PRECAUTIONARY/PREPAREDNESS ACTIONS…

OTHER WATCH INFORMATION…CONTINUE…WW 251…WW 252…WW
253…WW 254…

…Gleason

Note: The Aviation Watch (SAW) product is an approximation to the watch area. The actual watch is depicted by the shaded areas.
SAW5
WW 255 TORNADO IL IN LM 152215Z – 160300Z
AXIS..70 STATUTE MILES EAST AND WEST OF LINE..
60NNE MMO/MARSEILLES IL/ – 35WSW CMI/CHAMPAIGN IL/
..AVIATION COORDS.. 60NM E/W /19NW ORD – 6NNW AXC/
HAIL SURFACE AND ALOFT..3 INCHES. WIND GUSTS..65 KNOTS.
MAX TOPS TO 500. MEAN STORM MOTION VECTOR 23035.

LAT…LON 42168686 39838757 39839021 42168960

THIS IS AN APPROXIMATION TO THE WATCH AREA. FOR A
COMPLETE DEPICTION OF THE WATCH SEE WOUS64 KWNS
FOR WOU5.

Watch 255 Status Report Message has not been issued yet.

Note: Click for Complete Product Text.Tornadoes

Probability of 2 or more tornadoes

Mod (50%)

Probability of 1 or more strong (EF2-EF5) tornadoes

Mod (30%)

Wind

Probability of 10 or more severe wind events

Mod (60%)

Probability of 1 or more wind events > 65 knots

Mod (30%)

Hail

Probability of 10 or more severe hail events

Mod (60%)

Probability of 1 or more hailstones > 2 inches

Mod (60%)

Combined Severe Hail/Wind

Probability of 6 or more combined severe hail/wind events

High (90%)

For each watch, probabilities for particular events inside the watch (listed above in each table) are determined by the issuing forecaster. The “Low” category contains probability values ranging from less than 2% to 20% (EF2-EF5 tornadoes), less than 5% to 20% (all other probabilities), “Moderate” from 30% to 60%, and “High” from 70% to greater than 95%. High values are bolded and lighter in color to provide awareness of an increased threat for a particular event.

MIL OSI USA News –

May 16, 2025

MIL-OSI USA: ICE Utah search warrant results in 19 arrested

Source: US Immigration and Customs Enforcement

ST. GEORGE, Utah — U.S. Immigration and Customs Enforcement, in a joint operation with Washington City Police Department, served a Utah state search warrant May 14 for possession of false documents and illegal drugs at a collection of residences in Washington City.

Those into custody include:

Six illegal aliens with final orders of removal, two illegal aliens with expedited removal orders, five illegal aliens with voluntary departures, and three with notices to appear before an immigration judge.
An illegal alien from Mexico with charges of identity theft and forgery.
An illegal alien from Guatemala with prior removal from the United States, and current charges for identity theft and forgery.

“By leveraging the assets of federal and local law enforcement, we will continue to successfully fulfill our mission of ensuring public safety and national security,” said ICE Homeland Security Investigations Las Vegas Special Agent in Charge Lester R. Hayes, Jr. “Our commitment to working with our law enforcement partners will ultimately result in safer neighborhoods and stronger communities.”

During the search, 19 subjects were encountered and arrested for federal crimes, including being illegally present in the U.S., illegal reentry after a prior order of removal, Utah state charges related to forgery and identity theft, and one Utah state arrest warrant for drug-related charges.

The focus of the search warrant was a sprawling home with subdivisions throughout, designed to house dozens of adults in cramped, unsafe conditions. Local law enforcement records reflect multiple police contacts over a multiyear period for domestic-violence related shooting, drug-related calls, and numerous noise complaints, and was generally regarded as an “extremely problematic” dwelling by local law enforcement and city leadership.

This was a joint investigation between HSI St. George and the Washington City Police Department, with heavy involvement and support from Enforcement and Removal Operations in St. George, the U.S. Marshals Service, the Drug Enforcement Administration, the St. George Police Department, and the Washington County Sheriff’s Office. All arrested individuals will remain in ICE custody pending criminal or removal proceedings.

For more information, visit ICE.gov or follow HSI Las Vegas on X at @HSILasVegas.

MIL OSI USA News –

May 16, 2025

MIL-OSI USA: Duckworth Joins Schumer, Schiff, Colleagues in Demanding Independent Department of Defense Inquiry of Trump’s Acceptance of Qatari Plane

US Senate News:

Source: United States Senator for Illinois Tammy Duckworth
May 14, 2025
[WASHINGTON, D.C.] – U.S. Senator Tammy Duckworth (D-IL) joined Senate Democratic Leader Chuck Schumer (D-NY), U.S. Senator Adam Schiff (D-CA) and six other Senate national security leaders urging Acting Inspector General of the Department of Defense (DoD) Steven Stebbins to open an inquiry into DoD’s involvement facilitating the transfer of an unprecedented foreign gift intended for President Trump’s personal use. The Senators’ letter follows reports that President Donald Trump will accept a $400 million luxury plane as a gift from the Qatari government, in violation of the Constitution.
“DOD risks becoming embroiled in a brazen attempt to evade constitutional limitations on the acceptance of personal gifts from foreign governments without congressional approval. The Constitution provides that ‘no Person holding any Office of Profit or Trust under them, shall, without the Consent of the Congress, accept of any present, Emolument, Office, or Title, of any kind whatever, from any King, Prince, or foreign State.’ Congress has granted consent in only a narrow set of circumstances under the Foreign Gifts and Decorations Act, and none of these circumstances are applicable here,” the Senators wrote.
“Securing the plane against counterintelligence and surveillance risks, moreover, would be costly. Initial reporting suggests that the plane would need to be substantially retrofitted by a military contractor to ensure it meets necessary security and counterintelligence standards, which could take years to complete. DOD, and by extension U.S. taxpayers, would thereby bear the ultimate cost, which could be significant. This timeline, moreover, reinforces that such a gift is not, in fact, intended for official use. By the time the plane would be ready for President Trump’s use as part of the Air Force One fleet, we would likely be approaching the final stretch of President Trump’s final term in office, at which point the Department would likely be directed to transfer it to President Trump’s presidential library for his ultimate personal use,” the Senators continued.
Along with Duckworth, Schumer and Schiff, the letter was co-signed by U.S. Senators Richard Blumenthal (D-CT), Chris Coons (D-DE) Mazie Hirono (D-HI), Jack Reed (D-RI), Brian Schatz (D-HI) and Elizabeth Warren (D-MA).
Full text of the letter is available on Senator Duckworth’s website and below:
Dear Mr. Stebbins,
We write to request that you conduct an inquiry into the Department of Defense’s (DOD) role in facilitating and serving as a pass-through for President Trump to receive a luxury plane worth an estimated $400 million from Qatar.
Following initial public reports, President Trump confirmed on May 12, 2025, that he intends to accept this unprecedented gift from the Qatari royal family, which would constitute one of the largest foreign gifts ever accepted by a President or the U.S. government. According to public reporting, the Qatari government initially considered donating the plane directly to President Trump through his presidential library, but the Administration sought legal advice to restructure the transfer to circumvent constitutional and statutory prohibitions, including federal bribery and ethics laws.
Public reports raise the troubling prospect that the Administration involved DOD to (1) launder this impermissible gift, so that the Department could provide cover to give the transfer of the plane the appearance of an official gift; (2) place the onus on DOD to retrofit the plane at considerable cost to U.S. taxpayers; and (3) ultimately transfer it to President Trump’s library prior to the end of his term for his continued use in a personal capacity.
DOD risks becoming embroiled in a brazen attempt to evade constitutional limitations on the acceptance of personal gifts from foreign governments without congressional approval. The Constitution provides that “no Person holding any Office of Profit or Trust under them, shall, without the Consent of the Congress, accept of any present, Emolument, Office, or Title, of any kind whatever, from any King, Prince, or foreign State.” Congress has granted consent in only a narrow set of circumstances under the Foreign Gifts and Decorations Act, and none of these circumstances are applicable here.
In addition to these serious constitutional and legal concerns, this foreign emolument – and DOD’s possible involvement in facilitating it – could present severe foreign influence and counterintelligence risks. It could entangle DOD in President Trump’s personal financial interests and conflicts of interest, warp DOD’s military recommendations and advice moving forward, and undermine public confidence in the Department.
Securing the plane against counterintelligence and surveillance risks, moreover, would be costly. Initial reporting suggests that the plane would need to be substantially retrofitted by a military contractor to ensure it meets necessary security and counterintelligence standards, which could take years to complete. DOD, and by extension U.S. taxpayers, would thereby bear the ultimate cost, which could be significant. This timeline, moreover, reinforces that such a gift is not, in fact, intended for official use. By the time the plane would be ready for President Trump’s use as part of the Air Force One fleet, we would likely be approaching the final stretch of President Trump’s final term in office, at which point the Department would likely be directed to transfer it to President Trump’s presidential library for his ultimate personal use.
Accordingly, we request that you initiate an inquiry into the facts and circumstances surrounding DOD’s involvement to date in seeking to facilitate this foreign gift transfer and pursue a comprehensive audit and investigation to assess fraud, waste, and abuse if and when such a transfer occurs.
In doing so, we ask that you consider and provide an assessment of the following, including in classified form if needed:
the cost estimate and assessed timeline for retrofitting such an aircraft and installing communications and other equipment necessary to meet security and counterintelligence requirements for the Air Force One fleet;
the timeline, if any, that the White House has directed for this aircraft to be ready for the President’s use, whether necessary modifications can be made within such a timeframe to meet Air Force One standards, and what risks such a timeline could entail;
whether the existing contract for other Air Force One aircraft will continue or be terminated, including the cost of termination; and
the counterintelligence and security risks of incorporating this aircraft, provided by a foreign government, into the Air Force One fleet.
Thank you for your prompt attention to this matter and to this request.
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MIL OSI USA News –

May 16, 2025

MIL-OSI USA: Duckworth Presses FAA Officials on What the Agency is Doing Right Now to Prevent Even More Failures Like Recent Newark ATC Blackouts

US Senate News:

Source: United States Senator for Illinois Tammy Duckworth
May 14, 2025
[WASHINGTON, D.C.] – Former Blackhawk helicopter pilot and U.S. Senator Tammy Duckworth (D-IL)—a member of the U.S. Senate Committee on Commerce, Science and Transportation (CST) and Ranking Member of the Aviation Subcommittee—today pressed top FAA officials on what the agency is doing right now to prevent further failures like the ongoing situation at Newark Airport from happening at other airports across the country, in addition to addressing the urgent need to update our air traffic control systems over the long term. The Senator’s opening statement and questioning can be found on her YouTube.
“The deadly DCA crash, spike in near misses and recent air traffic control equipment outages impacting Newark have been terrifying, but they are not surprising,” said Duckworth. “I’ve been sounding the alarm about close calls and aging equipment for years—because the urgent need to overhaul our air traffic control systems, which will take years, has been so clear for so long. But in addition to that long-term overhaul, right now FAA must ramp up their efforts to proactively mitigate foreseeable risks—like what’s happening at Newark Airport or the recent near-misses at DCA.”
Additionally, Duckworth slammed the Trump Administration’s drastic cuts to FAA staff—with 700 employees reportedly having accepted FAA’s first deferred resignation offer and more than 2,000 projected to accept it in a second round—for being detrimental to the agency’s mission of protecting the flying public. Duckworth stressed, “Acting FAA Administrator Rocheleau said he expects a further reduction in force. We’ve been told the administration isn’t terminating air traffic controllers or others who are critical for safety—but FAA’s mission is literally safety. How do they think firing thousands of dedicated employees is going to help FAA meet this safety-critical moment?”
For years—long before the deadly DCA crash—Duckworth has been sounding the alarm that we must make these critical aviation safety investments immediately to prevent all-too-often near-misses from becoming catastrophic tragedies. Last Congress, Duckworth chaired two CST Aviation Subcommittee hearings—one last December and the other a year prior—to address our aviation industry’s chilling surge in near-deadly close calls and underscore the urgent need to improve air traffic control systems to protect the flying public.
As our nation continues to experience an air traffic controller shortage amid multiple near-misses, midair collisions and communication outages, Duckworth has underscored how critical it is that the FAA does not sacrifice effectiveness in favor of efficiency by lowering its longstanding high standards that new controllers must meet. Two weeks after the horrific DCA aircraft collision that killed 67 passengers and crew, the Trump Administration began firing hundreds of FAA employees. Last month, Duckworth sent a letter to FAA Acting Administrator Rocheleau on the reasoning behind these cuts to the workforce.
-30-

MIL OSI USA News –

May 16, 2025

MIL-OSI USA: Governor Stein Shares Recommendations on Proposed FEMA Reforms

Source: US State of North Carolina

Headline: Governor Stein Shares Recommendations on Proposed FEMA Reforms

Governor Stein Shares Recommendations on Proposed FEMA Reforms
lsaito
Thu, 05/15/2025 – 17:32

Raleigh, NC

Governor Josh Stein this week shared his recommendations on key reforms at the Federal Emergency Management Agency (FEMA) to improve federal disaster response. Governor Stein provided his input to the President’s FEMA Review Council in a letter in response to the Department of Homeland Security’s request for public input.

“Nobody wants disaster to strike their state, but we know that simply hoping for the best is not a viable strategy. We must take steps to make disasters less deadly and less costly while also being ready to support survivors when storms hit,” said Governor Stein. “North Carolina remains committed to working in good faith with the federal government and this Council on ways to improve federal disaster support, and we encourage the Council to keep the needs of our people at the forefront. Let’s improve FEMA, not abolish it.”

Governor Stein proposed the following four specific reforms:

Offer fast, flexible funding. “The federal funds that arrive in communities after a disaster are a lifeline for people and governments, but it is no secret that these funds often move too slowly and with too much red tape,” said Governor Stein. Stein proposed that FEMA disburse block grants, with states submitting pre-approved action plans to FEMA before disaster strikes so that they remain accountable.
Make permanent repairs immediately eligible for FEMA Funding. Governor Stein pointed out that currently, FEMA funds can only be used to rebuild structures to temporary or pre-storm condition. Directing those funds toward permanent repairs would save taxpayer dollars and make structures stronger and more resilient.
Move away from reimbursement programs to better support local governments. Current reimbursable programs require cash-strapped local governments to put up funding or seek funding from the state to complete a project that is then subject to FEMA reimbursement. FEMA should shift to monitoring and compliance rather than gradually approving projects one-by-one in order to get money to local governments faster.
Streamline the process for survivors. Disaster survivors currently have to fill out a variety of convoluted forms in order to apply for help. A common application that is sent to all relevant federal agencies would reduce the burden on survivors and help agencies coordinate with each other.

Governor Stein also urged the FEMA Review Council to maintain federal involvement in disaster preparedness and recovery, particularly through supporting resilience efforts in communities that are vulnerable to disasters. FEMA recently cancelled the Building Resilient Infrastructure and Communities (BRIC) program that was funding disaster preparedness construction in North Carolina, and Governor Stein suggested that while the program can be improved, it should not be permanently cancelled.

Resilience efforts save lives and money. A recent U.S. Chamber of Commerce report found that every $1 spent on resilience and disaster preparedness saves $13 in economic impact, damage, and clean-up costs.

Click here to read Governor Stein’s full letter.

May 15, 2025

MIL OSI USA News –

May 16, 2025