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Senator proposes 10% bonus to government employees working without pay

By Reuters
March 24, 2026 8:12 PM UTC Updated 4 hours ago

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U.S. Sen. Ruben Gallego speaks during the “People’s State of the Union” event ahead of U.S. President Trump’s State of the Union address in Washington, D.C., U.S., February 24, 2026. REUTERS/Elizabeth Frantz/File Photo Purchase Licensing Rights, opens new tab

March 24 (Reuters) – Democratic Senator Ruben Gallego ​on Tuesday ‌introduced legislation to give more ​than 100,000 ​Homeland Security Department employees ⁠a 10% ​bonus for ​time worked without pay since a ​partial government ​shutdown began in mid-February.

DHS ‌workers — ⁠including 50,000 Transportation Security Administration airport security ​officers — ​are ⁠set to miss their ​second ​full ⁠paycheck on Friday if the ⁠standoff ​continues.

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Reporting ​by David Shepardson, Editing ​by Franklin Paul

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US settles social media censorship case, bars agencies from threatening penalties | Reuters

By Mike Scarcella
March 24, 2026 10:43 PM UTC Updated 1 hour ago

WASHINGTON, March 24 (Reuters) – The Trump administration has agreed to a settlement that will bar three federal agencies from pressuring social media companies to remove ​or suppress speech, ending a high-profile lawsuit that reached the U.S. Supreme ‌Court when Trump’s predecessor Joe Biden was president.

The settlement, opens new tab, filed on Tuesday in a federal court in Louisiana, resolves a lawsuit brought by Missouri, Louisiana and several individual plaintiffs who alleged that ​the Democratic Biden administration unlawfully coerced major social media platforms into censoring ​posts about topics including COVID-19 and the 2020 presidential election.

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Under the ⁠agreement, the Surgeon General’s office, the Centers for Disease Control and Prevention and ​the Cybersecurity and Infrastructure Security Agency are prohibited for 10 years from threatening social ​media companies with legal, regulatory or economic punishment to get them to take down protected speech.

The White House had no immediate comment.

John Vecchione, a lawyer for some of the plaintiffs ​in the case, said in a statement that

US judge will not toss Charlie Javice conviction for defrauding JPMorgan based on clerks’ alleged conflicts

By Jonathan Stempel

March 24, 2026 11:22 PM UTC Updated 53 mins ago

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Item 1 of 2 Charlie Javice exits, following her guilty verdict in a criminal trial on charges of defrauding JPMorgan Chase & Co., at Manhattan federal court in New York City, U.S., March 28, 2025.REUTERS/Brendan McDermid/File Photo

[1/2]Charlie Javice exits, following her guilty verdict in a criminal trial on charges of defrauding JPMorgan Chase & Co., at Manhattan federal court in New York City, U.S., March 28, 2025.REUTERS/Brendan McDermid/File Photo

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NEW YORK, March 24 (Reuters) – A federal judge on Tuesday rejected Charlie Javice’s bid to throw out her conviction for defrauding JPMorgan Chase into buying her education startup Frank for $175 million, after she said ‌two law clerks had conflicts of interest by accepting jobs at the bank’s outside law firm.

U.S. District Judge Alvin Hellerstein in Manhattan said his clerks’ past and ​future employment at Davis Polk & Wardwell, including as summer associates prior ​to their clerkships,

Judge orders Trump administration to temporarily unfreeze Chicago transit funding

March 24, 2026 8:59 PM UTC / Reuters

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A subway train travels down an elevated track on Wabash Avenue in Chicago, Illinois, U.S., August 25, 2025. REUTERS/ Jim Vondruska/File Photo Purchase Licensing Rights, opens new tab

March 24 (Reuters) – A U.S. judge on Tuesday ordered President Donald Trump’s administration to temporarily unfreeze about $3 billion in ​funding for rail projects in Chicago.

The Chicago Transit Authority sued the U.S. Transportation ‌Department and its Federal Transit Administration on Friday, saying the federal government had withheld at least $9.5 million in reimbursements since October from grants previously approved under Democratic former President Joe Biden. The city had called the funding ​suspension an unlawful act of political retaliation.

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U.S. District Judge Thomas Durkin granted the CTA’s ​request for a temporary restraining order to require the funding but put his ⁠ruling on hold until Friday to give the federal government time to appeal.

The ruling is part of ​a widening legal battle between the Trump administration and Democratic-governed cities over the withholding of billions ​of dollars in previously approved federal transit funding, with similar lawsuits filed in New York.

The CTA on Tuesday called the ruling “a massive step toward restoration of funding for this historic project.”

Durkin’s ruling noted that the Transportation Department has only ​applied concerns about compliance with antidiscrimination laws to major projects in Chicago and New York, which ​indicates the reviews “are a pretextual basis for some other interest unrelated to actual compliance.”

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Chicago has the second-largest U.S. ‌public ⁠transportation system, with about a million rides taken daily. The transit agency called the frozen grants crucial to modernize and expand the “L,” Chicago’s system of elevated and underground trains.

The frozen funding was to modernize century-old track structure and extend one rail line by 5.5 miles (8.9 km).

Chicago asked for an ​emergency order and warned ​that without funding it ⁠would halt the projects by Friday.

The lawsuit said the federal government is attempting “to hold hostage billions of dollars in federal grants for crucial infrastructure ​projects in the City of Chicago.”

The Transportation Department did not immediately comment ​but said ⁠last week it would “fight to ensure federal dollars do not go towards discriminatory, illegal, and wasteful contracting practices.”

New York’s Metropolitan Transportation Authority also sued the administration last week after the government withheld nearly $60 million ⁠from a $7.7 ​billion subway project.

Earlier this month, a federal appeals court ​ruled that the administration must keep making payments on the $16 billion New York Hudson Tunnel Project after the Department of ​Transportation suspended more than $200 million in payments.

Reporting by David Shepardson; Editing by Franklin Paul and Lisa Shumaker

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Johnson says US will win AI race — but only if two conditions are met

Speaker Mike Johnson addressed the Hill & Valley Forum on Tuesday

By Elizabeth Elkind
Fox News

Published March 24, 2026 4:10pm EDT

House Speaker Mike Johnson, R-La., is calling for a national framework to regulate artificial intelligence (AI) — but cautioned it should not go too far.

“America will win the AI race. We will win it, if two things happen — if government resists the siren song of control, and if industry steps up as our patriotic partner,” Johnson said. “I think we can do both of those things.”

The leader of the House of Representatives spoke at the Hill & Valley Forum on Tuesday, an annual bipartisan meeting of lawmakers and private sector leaders to discuss American AI innovation.

TRUMP SAYS EVERY AI PLANT BEING BUILT IN US WILL BE SELF-SUSTAINING WITH THEIR OWN ELECTRICITY

Speaker of the House Mike Johnson, R-La., praises President Donald Trump’s policies and agenda ahead of his State of the Union speech, during a news conference at the Capitol in Washington, Tuesday, Feb. 24, 2026.(J. Scott Applewhite/AP Photo)

He told attendees on Capitol Hill that Congress had “three things” it needed to accomplish regarding AI.

“The first thing is, we have to deliver a single national framework that protects children, safeguards communities, supports creators, and avoids a patchwork of state regulations,” Johnson said. “We recognize that constant shifts in policy don’t just confuse the market, they run contrary to our national interest.”

He said lawmakers “will utilize existing structures to establish safeguards and rules of the road, so to speak, without smothering the whole marketplace with red tape.”

The Grok application appears on a smartphone screen in this photo illustration in Athens, Greece, on October 2, 2025.(Nikolas Kokovlis/NurPhoto via Getty Images)

The second thing, Johnson said, was to treat AI technology as a matter of national security in keeping it in the hands of the U.S. and its allies rather than the country’s adversaries.

CHINA RACES AHEAD ON AI —TRUMP WARNS AMERICA CAN’T REGULATE ITSELF INTO DEFEAT

The final task the speaker mentioned is a duty to “move at the speed that victory demands.”

It comes days after President Donald Trump released his own framework for AI regulations that includes more guardrails against self-harm and sexual exploitation for AI platforms accessed by children, streamlining permitting for AI data centers, and preventing AI from being used to silence free speech, among other measures.

President Donald Trump speaks during the swearing in for Homeland Security Secretary Markwayne Mullin in the Oval Office of the White House, Tuesday, March 24, 2026.(AP Photo/Alex Brandon)

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The proposal would need to be drafted as legislation by congressional lawmakers and passed by both chambers to be able to affect any meaningful change.

Trump also issued a moratorium on states’ abilities to enact their own AI regulations late last year.

Elizabeth Elkind is a politics reporter for Fox News Digital leading coverage of the House of Representatives. Previous digital bylines seen at Daily Mail and CBS News.

Follow on Twitter at @liz_elkind and send tips to elizabeth.elkind@fox.com

Trump to ease smog rules on summer gasoline to bring down prices, sources say

2026-03-24T23:26:16.916Z / Reuters

By Jarrett Renshaw

March 24, 2026 11:26 PM UTC Updated 25 mins ago

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Gasoline prices are displayed at a gas station price display, in Carlsbad, California, U.S., March 3, 2026. REUTERS/Mike Blake/File Photo Purchase Licensing Rights, opens new tab

HOUSTON, March 24 (Reuters) – The Trump administration is expected to announce as soon ​as Wednesday that it will temporarily lift federal smog-cutting ‌restrictions on summer-blend gasoline to curb rising energy prices stemming from the war on Iran, according to two sources familiar with the matter.

The move would ​make gasoline cheaper by not forcing refiners and retailers to switch ​to more costly summer blends. Fuel retailers would also be allowed ⁠to continue selling gasoline blended with 15% ethanol, known as ​E15, throughout the summer driving season when stricter rules normally limit ​its use in much of the country.

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Analysts say the change could shave several cents per gallon off retail prices and provide relief to both consumers ​and refiners struggling with tight fuel supplies. The U.S. average price ​for a gallon of regular gasoline recently climbed above $3.97, up sharply from below $3 ‌earlier ⁠this year, according to data from AAA.

The U.S. normally switches to summer gasoline blends to reduce air pollution. These blends have lower volatility, limiting evaporation that can contribute to smog in warmer weather.

Oil and gasoline ​prices have surged ​as the Iran conflict ⁠has disrupted global supply. U.S. crude topped $100 a barrel for the first time since the 2022 ​Russia-Ukraine shock.

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In a statement, the U.S. Environmental Protection Agency, ​which ⁠oversees the regulations, said it has worked hard to promote American energy dominance and is “monitoring the supply with industry and federal partners.”

The expected move is ⁠part ​of a broader effort by the White ​House to contain the economic and political fallout from rising energy costs as peak ​summer driving season approaches.

Reporting by Jarrett Renshaw; Editing by Lisa Shumkaer

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Senate confirms Colin McDonald as first DOJ fraud enforcement chief | Fox News

By Jasmine Baehr, Fox News
Published March 24, 2026 6:03pm EDT

The crackdown on fraud in Minnesota will serve as a blueprint for a new Department of Justice office focused on protecting taxpayer funds from scams, according to DOJ nominee Colin McDonald.

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The Senate confirmed Colin McDonald on a 52–47 vote to serve as the Justice Department’s first assistant attorney general for national fraud enforcement on Tuesday, as the Trump administration ramps up efforts to crack down on abuse of taxpayer-funded programs.

The confirmation comes as federal officials continue investigating large-scale fraud schemes, including a Minnesota daycare fraud probe involving millions in taxpayer-funded federal dollars, while House Oversight Committee Chairman James Comer has alleged whistleblowers warned state leaders about the issue for years.

President Donald Trump created the new National Fraud Enforcement Division to target systemic fraud across federal programs, pointing to cases such as Minnesota, which officials say have both exposed widespread abuse and helped shape the federal government’s response.

“My Administration has uncovered fraud schemes in states like Minnesota and California, where these thieves have stolen hundreds of billions of taxpayer dollars,” Trump said. “Together, we will end the fraud and restore integrity to our federal programs.”

EXCLUSIVE: SENATE BILL TARGETS MINNESOTA-STYLE ‘RUNAWAY FRAUD’ TO FORCE SCAMMERS REPAY TAXPAYERS

Colin McDonald, U.S. assistant attorney general for national fraud enforcement nominee, speaks during a Senate Judiciary Committee confirmation hearing Feb. 25, 2026.(Graeme Sloan/Getty Images)

The new role is intended to centralize enforcement efforts and expand the Justice Department’s ability to investigate and prosecute complex fraud schemes tied to public assistance programs.

During his confirmation hearing, McDonald said the work in Minnesota had been “pivotal” spotlighting fraud in taxpayer-funded programs and that the new division would seek to “scale” similar efforts nationwide.

Attorney General Pam Bondi called McDonald an “experienced, skilled, and tough prosecutor” who will “continue doing incredible work to root out fraud across America.”

FEDERAL FRAUD FACES SENATE SHOWDOWN AS THUNE TAPS ERNST TO LEAD REFORMS AFTER MINNESOTA SCANDAL

Quality Learning Center in Minnesota was found at the center of an alleged childcare fraud scandal in the state.(Madelin Fuerste / Fox News Channel)

Deputy Attorney General Todd Blanche described McDonald as “one of the most effective attorneys” he has worked with and said the American people should have confidence in his leadership of the new division.

Vice President JD Vance said McDonald has an “exceptional prosecutorial track record” and is well positioned to take on the role.

McDonald currently serves as an associate deputy attorney general at the Justice Department, where he has worked on major enforcement initiatives under Blanche.

GOP SENATOR PUSHES TO CREATE ANTI-FRAUD SPECIAL INSPECTOR GENERAL AFTER MINNESOTA FRAUD REVELATIONS

Senator Chuck Grassley, a Republican from Iowa and chairman of the Senate Judiciary Committee, left, and Senator Dick Durbin, a Democrat from Illinois and ranking member of the Senate Judiciary Committee, during a confirmation hearing.(Graeme Sloan/Bloomberg via Getty Images)

During his testimony, McDonald emphasized the scale of the problem, citing estimates that hundreds of billions of dollars are lost to fraud annually, and said the Justice Department would work with federal, state and local partners to investigate and prosecute cases, adding that “no fraud is too big” and “no fraud is too small” for enforcement.

The Minnesota daycare fraud investigation has drawn particular scrutiny as part of the broader crackdown, with federal investigators and lawmakers examining allegations that funds intended for childcare and meals for children were diverted or misused.

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A recent state audit found Minnesota officials failed for years to properly investigate fraud-related allegations, concluding the Department of Human Services had the authority to pursue cases but did not act, according to the report.

Fox News Digital’s Landon Mion, Andrew Mark Miller, Emma Colton and Max Bacall contributed to this reporting.

Jasmine Baehr is a Breaking News Writer for Fox News Digital, where she covers politics, the military, faith and culture.

OpenAI pulls the plug on its Sora AI video app

Updated on: March 24, 2026 / 6:00 PM EDT / CBS News

OpenAI said Tuesday that it is discontinuing its Sora AI video app.

The move comes as the video platform wanes in popularity among users, according to the Wall Street Journal, which first reported OpenAI’s decision to pull the plug.

“We’ve decided to discontinue Sora in the consumer app and API. As we focus and compute demand grows, the Sora research team continues to focus on world simulation research to advance robotics that will help people solve real-world, physical tasks,” an OpenAI spokesperson said in a statement to CBS News.

In a social media post, OpenAI also expressed thanks to Sora users, saying that “we know this news is disappointing.”

AI video apps have wowed tech fans for their ability to almost instantly generate videos, while drawing criticism for making it harder to distinguish real from fake images.

Stop the slop

The torrent of AI-created videos from Sora and other developers heightened concerns about the proliferation of AI “slop” — low-quality or deliberately deceptive videos that critics say are swamping the internet.

OpenAI, the company behind ChatGPT, launched Sora in February 2024, sparking vigorous discussion about the future of content creation, filmmaking and media in the age of artificial intelligence.

In September 2025, OpenAI released a more powerful version of the tool, Sora 2, with one feature enabling users to create “cameos” of themselves, friends and others. The app quickly jumped to the top of Apple’s app store.

Yet Sora also generated its fair share of debate. In 2025, the app courted controversy when some users produced what the company characterized as “disrespectful depictions” of Martin Luther King Jr., prompting it to temporarily block app users from making videos using the civil rights activist’s likeness.

Sora also raised copyright concerns after users started making videos with popular characters like Ronald McDonald.

In December of last year, Disney announced that it reached a licensing deal with OpenAI to allow users to create videos with hundreds of characters from Disney, Marvel, Pixar and Star Wars.

“We appreciate the constructive collaboration between our teams and what we learned from it, and we will continue to engage with AI platforms to find new ways to meet fans where they are while responsibly embracing new technologies that respect IP and the rights of creators,” a Disney spokesperson said in a statement on Tuesday.

Although OpenAI is scrapping Sora, the company said ChatGPT’s AI image generator will remain intact.

“Every day we’re making tradeoffs in how we apply compute across research, product launches and inference, and we’re prioritizing the highest-value uses that best advance our mission,” OpenAI said in its statement to CBS News.

Edited by Alain Sherter

https://www.cbsnews.com/video/how-openais-sora-2-changed-since-initial-release/

FedEx to offer same-day delivery as it battles with Amazon and other retailers

March 24, 2026 / 5:10 PM EDT / CBS News

FedEx said Tuesday that it will offer same-day delivery in partnership with logistics company OneRail, with the announcement following a recent move by Amazon to offerexpedited deliveries across the U.S.

The new shipping option allows FedEx customers to choose two-hour or end-of-day delivery when they are completing the checkout process for a package. The company said it will then match the order with other delivery providers in its national network, while also allowing customers to track packages.

Customers can opt in for same-day delivery for different packages, including large, oversized or specialized deliveries, FedEx said in a news release.

FedEd did not immediately respond to a request for comment on when the service will launch or where it will be available.

OneRail did not respond to a request for comment. On its website, the Orlando, Florida-based company said it uses artificial intelligence to streamline deliveries. Other OneRail customers in Lowe’s and PepsiCo.

FedEx is moving to speed its deliveries as retail giants Amazon and Walmart also roll out same-day delivery. Amazon last week introduced one-hour and three-hour delivery options, with the latter available in thousands of cities across the U.S.

Walmart has also expanded its delivery services over the years to include faster shipping services throughout the day, including earlymorning hours and late evening.

Edited by Alain Sherter

Venezuelan man sues US over deportation to El Salvadoran prison | Reuters

By Mike Scarcella
March 24, 2026 8:24 PM UTC Updated 3 hours ago

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Neiyerver Adrian Leon Rengel, who has filed a formal complaint against the U.S. government for sending him to El Salvador’s most notorious prison, claiming he was falsely accused of gang membership by U.S. President Donald Trump’s administration, looks on during an interview, in Caracas, Venezuela July 29, 2025. REUTERS/Gaby Oraa [Purchase Licensing Rights, opens new tab]

WASHINGTON, March 24 (Reuters) – A Venezuelan man who said he was wrongfully identified as a gang member and deported to a notorious El Salvador prison in violation of a ​U.S. court order has sued the U.S. government for at least $1.3 million ‌in damages.

Neiyerver Adrián Leon Rengel, a barber who lived in Irving, Texas, filed the lawsuit, opens new tab on Tuesday in federal court in Washington, accusing the government of false imprisonment, negligence and other claims.

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Rengel alleges he was wrongly ​identified in March 2025 as a member of the Venezuelan gang Tren de ​Aragua and detained by U.S. immigration officers while he was heading to ⁠work. The lawsuit said the only justification offered at the time of his arrest was ​that his tattoos indicated gang membership.

“This case reveals an illegal and morally bereft plan of ​action at the highest levels of our government to defy a federal court, strip a man of his rights, and hand him over to a foreign government for torture to prove a political point,” said ​Norm Eisen, a lawyer for Rengel. “Adrián Rengel spent four months in abhorrent, inhumane conditions ​because senior officials chose to flout the rule of law.”

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DHS SAYS RENGEL A PUBLIC SAFETY THREAT

The lawsuit appears ‌to ⁠be the first seeking damages from the U.S. by a deportee to the prison in El Salvador.

The Department of Homeland Security, in a statement, reiterated its claim that Rengel entered the country illegally in 2023 from Venezuela and is an associate of Tren de Aragua. The agency ​said Rengel was deemed “a ​public safety threat.”

The Trump ⁠administration made a crackdown on immigration a hallmark of the president’s second term, which began in January 2025. Rengel was one of ​the 252 Venezuelans who were deported by the administration to El Salvador’s ​Terrorism Confinement Center ⁠last year.

Rengel spent four months in the maximum-security prison, where he said Salvadoran officials subjected him to physical and psychological abuse, humiliation and degradation.

He was released from the center in July ⁠2025 and ​sent back to Venezuela as part of a prisoner ​swap agreement between the United States and Venezuela. Rengel last year filed a formal administrative complaint against the U.S., ​a necessary precursor to bringing a lawsuit.

Reporting by Mike Scarcella; Editing by David Bario, Rod Nickel

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