China vows retaliation after Trump ends preferential status for Hong Kong

By Jeff Mason and Steve Holland

WASHINGTON (Reuters) – President Donald Trump on Tuesday ordered an end to Hong Kong’s special status under U.S. law to punish China for what he called “oppressive actions” against the former British colony, prompting Beijing to warn of retaliatory sanctions.

Citing China’s decision to enact a new national security law for Hong Kong, Trump signed an executive order that he said would end the preferential economic treatment for the city.

“No special privileges, no special economic treatment and no export of sensitive technologies,” he told a news conference.

Acting on a Tuesday deadline, he also signed a bill approved by the U.S. Congress to penalize banks doing business with Chinese officials who implement the new security law.

“Today I signed legislation, and an executive order to hold China accountable for its aggressive actions against the people of Hong Kong, Trump said.

“Hong Kong will now be treated the same as mainland China,” he added.

Under the executive order, U.S. property would be blocked of any person determined to be responsible for or complicit in “actions or policies that undermine democratic processes or institutions in Hong Kong,” according to the text of the document released by the White House.

It also directs officials to “revoke license exceptions for exports to Hong Kong,” and includes revoking special treatment for Hong Kong passport holders.

China’s foreign ministry said on Wednesday Beijing will impose retaliatory sanctions against U.S. individuals and entities in response to the law targeting banks, though the statement released through state media did not reference the executive order.

“Hong Kong affairs are purely China’s internal affairs and no foreign country has the right to interfere,” the ministry said.

Critics of the security law fear it will crush the wide-ranging freedoms promised to Hong Kong when it returned to Chinese rule in 1997, while supporters say it will bring stability to the city after a year of sometimes violent anti-government protests.

The security law punishes what Beijing broadly defines as subversion, secession, terrorism and collusion with foreign forces with up to life in prison.

U.S. relations with China have already been strained over the global coronavirus pandemic, China’s military buildup in the South China Sea, its treatment of Uighur Muslims and massive trade surpluses.

Trump’s handling of the coronavirus pandemic has raised doubts about whether he can win re-election on Nov. 3 amid a surge of new infections. He has attempted to deflect blame onto China.

“Make no mistake. We hold China fully responsible for concealing the virus and unleashing it upon the world. They could have stopped it, they should have stopped it. It would have been very easy to do at the source, when it happened,” he said.

Asked if he planned to talk to Chinese President Xi Jinping, Trump said: “I have no plans to speak to him.”

DOUBLE-EDGED SWORD?

Analysts say that completely ending Hong Kong’s special treatment could prove self-defeating for the United States.

Hong Kong was the source of the largest bilateral U.S. goods trade surplus last year, at $26.1 billion, U.S. Census Bureau data shows.

According to the State Department, 85,000 U.S. citizens lived in Hong Kong in 2018 and more than 1,300 U.S. companies operate there, including nearly every major U.S. financial firm.

The territory is a major destination for U.S. legal and accounting services.

The United States began eliminating Hong Kong’s special status under U.S. law in late June, halting defense exports and restricting the territory’s access to high-technology products as China prepared to enact the security legislation.

In May, Trump responded to China’s plans for the security law by saying he was initiating a process to eliminate the special economic treatment that has allowed Hong Kong to remain a global financial center.

He stopped short then of calling for an immediate end to privileges, but said the moves would affect the full range of U.S. agreements with Hong Kong, from an extradition treaty to export controls on dual-use technologies.

A U.S. official, speaking on condition of anonymity, said the administration was also preparing sanctions against Chinese officials and entities involved in the Hong Kong crackdown, including further U.S. travel bans and possible Treasury sanctions.

The timing remained unclear. The White House has previously threatened such sanctions but so far has only imposed restrictions on visas for an unspecified number of unnamed Chinese officials.

(Reporting by Jeff Mason and Steve Holland; Additional reporting by David Brunnstrom, Alexandra Alper, Patricia Zengerle, Eric Beech, Makini Brice and Matt Spetalnick; Editing by Leslie Adler and Peter Cooney)

U.S. public schools, focus of debate on reopening, are unsung economic force

By David Lawder

WASHINGTON (Reuters) – As the debate rages over how to safely reopen U.S. schools this autumn, one factor weighs heavily: the nation’s 98,000 public “K-12” schools are a cornerstone of the economy, and a massive jobs engine.

Nearly 51 million American kids attend public elementary, middle and high schools, compared to about six million in private schools. The educated workforce and childcare the system creates have been key drivers of economic growth.

With a total workforce of about eight million Americans before the pandemic, kindergarten through 12th grade public education is also one of the largest U.S. employment sectors, exceeding construction, hospitals, finance and insurance and transportation and warehousing.

Total expenditures for these schools were $721 billion during the 2018 fiscal year, according to U.S. Census Bureau data.

That is more than the U.S. Defense Department’s $671 billion budget that year, or the Pentagon’s $705 billion request for fiscal 2021.

The Trump administration, including U.S. Education Secretary Betsy DeVos, has been pushing for schools to physically reopen in the fall as U.S. coronavirus deaths near 140,000, the world’s highest. But it has not embraced any blueprint, including federal health guidelines, for how to do that safely.

Parents, teachers and local governments are expressing growing concern, after a string of coronavirus outbreaks at day care and summer school classrooms around the country.

On Monday, Los Angeles and San Diego said their 700,000-student public K-12 schools would start online-only education in August, citing “skyrocketing” coronavirus infection rates in California.

LOCAL DECISION

The White House has little real sway over whether public schools will reopen – just about 8% of U.S. K-12 public school funding comes from the federal government, with the remainder split fairly evenly between state and local governments, the Census Bureau data shows.

The Department of Education says public school spending is heavily skewed toward salaries and benefits, which made up 80% of the per-pupil total spending of $12,612 in 2018. About 11% goes to purchased services and 7% to supplies.

Maintaining these jobs is particularly important for local communities because of the economic multiplier effect, said Elise Gould, senior economist at the Economic Policy Institute in Washington. That $721 billion in public school spending in 2018 translated to about $1.08 trillion in direct GDP output, she calculates, not including the economic benefits of better-educated workers.

Although it rebounded somewhat in June, local government education employment is still down by 667,000 since March, when schools shifted largely to online instruction, Bureau of Labor Statistics data show.

That is nearly double the 351,000 jobs lost in local school districts after the 2008-2009 financial crisis, when tax revenues and budgets withered.

The losses could increase without federal aid to state and local governments, Gould said. “They’re faced with austerity and severe cuts and education is one of the places they look.”

Many of those laid off, including teaching assistants, counselors, and maintenance workers, are likely supported by enhanced unemployment benefits, scheduled to expire at the end of July.

It is difficult to say how much school shutdowns in the fall would affect the U.S. economy. Analysis from Washington-based think tanks has focused on the long-term cost to the U.S. economy of a less skilled workforce in years to come due to school closures. But there is little data to show how closures in the fall would impact U.S. jobs and the GDP immediately.

WHO’S WATCHING THE KIDS?

Online-only K-12 education or closed schools may pull parents, and especially women, out of the workforce, particularly those with very young children that need more supervision.

According to a recent McKinsey & Co report on reopening schools, about 26.8 million Americans, or about 16% of the workforce, are dependent on child care in order to work.

Physically opening schools a few days a week, as has been proposed in New York City, will not help much without more federal aid for child care, said Bruce Fuller, a professor of education and public policy at the University of California-Berkeley.

“This cost would be offset by the surge in labor supply and income, as parents flock back to work, helping to jump-start the economy,” Fuller said.

DeVos told CNN on Sunday that because children contract the virus at a far lower rate than adults, there is little danger for them to be back in schools.

“We know that schools across the country look very different and that there’s not going to be a one-size-fits-all approach to everything,” DeVos told Fox News Sunday.

Despite the threat to their jobs, teachers are not pushing to reopen schools. A USA Today poll at the end of May revealed that one in five teachers said they were unlikely to return to their classrooms in the fall.

A Kaiser Family Foundation study found that nearly 1.5 million U.S. teachers, almost one in four, were at greater risk of serious illness if infected with the coronavirus due to age or existing health conditions.

(Reporting by David Lawder; Editing by Heather Timmons and Alistair Bell)

California shuts down businesses, schools as coronavirus outbreak grows

By Sharon Bernstein and Dan Whitcomb

SACRAMENTO (Reuters) – California’s governor on Monday clamped new restrictions on businesses as coronavirus cases and hospitalizations soared, and the state’s two largest school districts, in Los Angeles and San Diego, said children would be made to stay home in August.

Governor Gavin Newsom ordered bars closed and restaurants, movie theaters, zoos and museums across the nation’s most populous state to cease indoor operations. Gyms, churches and hair salons must close in the 30 hardest-hit counties.

“It’s incumbent upon all of us to recognize soberly that COVID-19 is not going away any time soon, until there is a vaccine and/or an effective therapy,” Newsom said at a news briefing.

The governor called the move critical to stemming a surge in COVID-19 cases that have strained hospitals in several of California’s rural counties.

The public school districts for Los Angeles and San Diego, which instruct a combined 706,000 students and employ 88,000 people, said in a joint statement they would teach only online when school resumes in August, citing “vague and contradictory” science and government guidelines.

The districts said countries that have safely reopened schools have done so only after establishing declining infection rates and on-demand coronavirus testing.

“California has neither,” the statement said, adding, “The sky-rocketing infection rates of the past few weeks make it clear the pandemic is not under control.”

The union representing Los Angeles teachers applauded the strategy in a separate statement released shortly after the school shutdowns were announced.

“In the face of the alarming spike in COVID cases, the lack of necessary funding from the government to open schools safely and the outsized threat of death faced by working-class communities of color, there really is no other choice that doesn’t put thousands of lives at risk,” United Teachers Los Angeles said.

Brenda Del Hierro, who has two children in Los Angeles schools, said resuming traditional instruction was important but the hazards had to be considered. “For their social and emotional well being they need to go back to school. But at the end of the day there is too much of a risk,” she said.

DISTRICTS CLASH WITH TRUMP

The decision to cancel in-person classes puts the districts at odds with U.S. President Donald Trump, who has said he might withhold federal funding or remove tax-exempt status from school systems that refuse to reopen. Most education funding comes from state and local governments.

Administration officials have said data does not suggest attending school would be dangerous for children because their infection rates are far lower than the population at large.

In response to the California districts’ announcement, the White House reiterated that the ideal scenario is for students to go to school. “Hopefully Los Angeles and San Diego can get there soon as well, as that is what is best for children.” spokesman Judd Deer said.

Newsom, who has said during the pandemic that it was up to local school districts to determine how best to educate their students, cheered the announcements by Los Angeles and San Diego.

But Republicans criticized the governor for failing to issue statewide guidelines for schools during the health crisis.

“While he continues to blame Californians for his failure in leadership, his demands to close our small businesses and lack of direction on opening schools will further harm California’s school children and the small businesses that fuel our economy,” Jessica Millan Patterson, chairwoman of the California Republican Party, said in a written statement.

California, along with Florida, Arizona and Texas have emerged as the new U.S. epicenters of the pandemic. Infections have risen rapidly in about 40 of the 50 states over the last two weeks, according to a Reuters analysis.

Despite nearly 28,000 new COVID-19 cases in the last two days in Florida, Disney World in Orlando welcomed the public on Saturday for the first time since March with guests required to wear masks, undergo temperature checks and keep physically apart.

(Reporting by Sharon Bernstein in Sacramento, Dan Whitcomb in Los Angeles, Steve Gorman in Eureka, California, Rich McKay in Atlanta, Lisa Lambert and Doina Chiacu in Washington, and Nathan Layne in Wilton, Connecticut; Writing by Lisa Shumaker and Dan Whitcomb; Editing by Howard Goller, Bill Tarrant and Cynthia Osterman)

More U.S. schools go online-only as coronavirus cases and deaths rise

By Lisa Shumaker

(Reuters) – With coronavirus infections and deaths rising in many parts of the country, U.S. educators from California to Wisconsin are opting for online learning rather than a return to classrooms when the school year begins in a few weeks.

Schools from Milwaukee, Wisconsin, to Fort Bend County, Texas, joined California’s two largest school districts, Los Angeles and San Diego, in announcing plans to keep teachers and students from the close contact that classrooms demand.

The decision puts the districts at odds with U.S. President Donald Trump, who has threatened to withhold federal funds or remove tax-exempt status if they refuse to reopen classrooms, even though most schools are financed by state and local taxes.

Trump’s campaign views the reopening of classrooms, enabling parents to get back to work, as a key to economic recovery and a boost to his re-election chances on Nov. 3.

Los Angeles and San Diego schools said in a joint statement on Monday that countries that have safely reopened schools have done so only after establishing declining infection rates and on-demand coronavirus testing.

U.S. coronavirus cases rose in 46 of 50 states last week and the number of deaths rose nationally last week for the first time since mid-April and about six weeks after cases began to increase, according to a Reuters analysis.

With more than 3.3 million COVID-19 cases, the United States ranks first in the world in cases per capita, according to a Reuters analysis, and with 135,000 deaths, ranks seventh in deaths per capita among the 20 countries with the most cases.

LONG WAITS FOR TESTS, RESULTS

Testing in several states has been plagued by long lines and waits of more than a week to learn the results, according to numerous posts on social media and videos at test locations.

Teachers in Loudoun County, Virginia, protested outside school headquarters on Monday with one woman fully enclosed in a white lab suit and face shield holding a sign that said, “Our new school uniform.” To keep physically distant, the teachers honked their car horns in unison, according to a video.

Faculty members were protesting against a school board plan for hybrid instruction that would include two days of in-person teaching, according to local media.

Florida, the epicenter of the current outbreak, still plans for its schools to resume in-person learning in August.

Despite nearly 28,000 new COVID-19 cases in the last two days in Florida, Disney World in Orlando welcomed the public on Saturday for the first time since March with guests required to wear masks, undergo temperature checks and keep physically apart.

After experiencing nearly 16,000 new cases in the last two days, California further retreated from reopening its economy.

California Governor Gavin Newsom, a Democrat, ordered bars to close and restaurants, movie theaters, zoos and museums across the country’s most populous state to cease indoor operations. Gyms, churches and hair salons must close in the 30 hardest-hit counties.

“It’s incumbent upon all of us to recognize soberly that COVID-19 is not going away any time soon, until there is a vaccine and/or an effective therapy,” Newsom said at a news briefing.

(Writing by Lisa Shumaker; Editing by Howard Goller)

What you need to know about the coronavirus right now

(Reuters) – Here’s what you need to know about the coronavirus right now:

Restrictions reimposed across Asia-Pacific region

From Melbourne to Manila, Hong Kong and India’s tech capital Bengaluru, lockdowns and strict social distancing restrictions are being reimposed across the Asia-Pacific after a surge in new coronavirus cases fanned fears of a second wave of infections.

Many parts of Asia, the region first hit by the coronavirus that emerged in central China late last year, are finding cause to pause the reopening of their economies, some after winning praise for their initial responses to the outbreak.

The number of coronavirus infections around the world hit 13 million on Monday, according to a Reuters tally, climbing by a million in just five days. Reuters’ global tally, which is based on government reports, shows COVID-19 accelerating fastest in Latin America, the number of deaths there exceeding the figure for North America for the first time on Monday.

Shutdown in California

California’s governor on Monday clamped new restrictions on businesses as coronavirus cases and hospitalizations soared, and the state’s two largest school districts, in Los Angeles and San Diego, said children would be made to stay home in August.

Governor Gavin Newsom, a Democrat, ordered bars closed and restaurants, movie theaters, zoos and museums across the nation’s most populous state to cease indoor operations. Gyms, churches and hair salons must close in the 30 hardest-hit counties.

“It’s incumbent upon all of us to recognize soberly that COVID-19 is not going away any time soon, until there is a vaccine and/or an effective therapy,” Newsom said at a news briefing.

The decision to cancel in-person classes puts the districts at odds with U.S. President Donald Trump, who has said he might withhold federal funding or remove tax-exempt status from school systems that refuse to reopen.

‘Worst-case’ winter toll

Britain faces a potentially more deadly second wave of COVID-19 in the coming winter that could kill up to 120,000 people over nine months in a worst-case scenario, health experts said on Tuesday.

With COVID-19 more likely to spread in winter as people spend more time together in enclosed spaces, a second wave of the pandemic “could be more serious than the one we’ve just been through,” said Stephen Holgate, a professor and co-lead author of a report by Britain’s Academy of Medical Sciences.

“This is not a prediction, but it is a possibility,” Holgate told an online briefing. “Deaths could be higher with a new wave of COVID-19 this winter, but the risk of this happening could be reduced if we take action immediately.”

The United Kingdom’s current death toll from confirmed cases of COVID-19 is around 45,000, the highest in Europe.

Good news from hard-hit Belgium

Belgium, which has reined in the coronavirus after becoming the worst-hit mid-sized country in the world, reported zero new coronavirus-related deaths in 24 hours on Tuesday for the first time since March 10.

As in many European countries that were hard-hit by the pandemic in March and April, Belgium sharply reduced infections by imposing a lockdown, which is now being lifted.

The total number of deaths reported by the national public health institute Sciensano remained at 9,787. In the country of 11.5 million people, that works out to around 850 deaths per million, the worst in the world apart from the tiny city state of San Marino. The peak daily death toll was 343 on April 12.

Bastille Day with a difference

France held a scaled-down annual Bastille Day celebration on Tuesday, with none of the usual tanks and troops parading down Paris’s Champs Elysees avenue, in a concession to the COVID-19 epidemic still stalking Europe.

Instead, President Emmanuel Macron, standing in the back of a military jeep, reviewed ranks of socially-distanced troops on the Place de la Concorde square after a flypast by military aircraft.

“I wish, with all the French, with the armies themselves, to pay a vibrant tribute to health workers and those who, in all sectors, have enabled public, social and economic life to continue,” Macron said in message released ahead of the parade.

(Compiled by Linda Noakes and Karishma Singh; editing by Emelia Sithole-Matarise)

U.N. expert accuses White House of ‘onslaught’ against media

By Emma Farge

GENEVA (Reuters) – The U.N. special rapporteur on freedom of expression on Monday accused the White House of mounting an “onslaught” against the media and referred to a negative “Trump effect” on global press freedom.

In his last official press briefing before his six-year tenure ends later this month, David Kaye said in a series of forthright comments that he hoped “attacks” on U.S. journalists would end when President Donald Trump leaves office.

“Clearly the signature issue over the past four years now has been the way in which this particular president addresses the media: The way he denigrates the media, denigrates freedom of expression,” he told journalists in Geneva.

Kaye specified that the so-called onslaught consisted of criticism of reporters and spreading “disinformation,” as well as partnerships with conservative media organisations.

The White House did not immediately respond to a request for comment.

Asked about the impact of that on press freedom around the world, he said: “There clearly is a Trump effect, a very negative one,” adding that previous U.S. administrations had been more critical of attacks on the press, such as the killing of Saudi journalist Jamal Khashoggi. He added that the Trump administration has created a global culture of permissiveness.

Kaye also raised broad concerns about government crackdowns that has worsened with the COVID-19 pandemic in a trend he described as “very disturbing” and contributing to the spread of the disease.

“Unfortunately often under the guise of trying to restrict disinformation, governments have resorted to old tools of clamping down on the free flow of information,” he said, without naming specific countries.

He was also critical of China’s “highly repressive approach to freedom of expression” and urged resistance to this approach.

“I think that there’s a real challenge to the democratic world to deal with what China considers to be the managed Internet approach and its approach to managing freedom of expression generally,” he said.

(Reporting by Emma Farge; Editing by Andrew Heavens and Aurora Ellis)

Trump willing to consider more aid to reopen schools, Kudlow says

WASHINGTON (Reuters) – U.S. President Donald Trump is willing to consider additional aid to re-open schools, White House economic adviser Larry Kudlow said on Monday.

“The president has said that he’s open to suggestions about additional funding if it appears that would be necessary in certain states and localities, so he will look at that,” Kudlow told reporters outside the White House.

Trump has been pushing for schools to re-open for the beginning of the school year in the fall, even while the coronavirus surges in states across the country.

Last week, Trump attacked the Centers for Disease Control and Prevention for school reopening guidelines that he said were too expensive and impractical.

The Trump administration has argued that schools must re-open in order to get the battered economy back on track, but critics have questioned whether it can be done safely.

(Reporting by Lisa Lambert and Makini Brice; Editing by Chizu Nomiyama and Richard Chang)

More migrants caught crossing U.S.-Mexico border despite pandemic restrictions

By Ted Hesson

WASHINGTON (Reuters) – U.S. Border Patrol detained roughly 30,000 migrants attempting to cross the southwest border with Mexico in June, a 41% increase from the previous month, even as sweeping coronavirus-related border restrictions instituted by President Donald Trump remain in place.

Roughly nine in 10 of those caught crossing the U.S.-Mexico border in June were single adults, according to statistics released on Thursday by U.S. Customs and Border Protection (CBP). The number of single adults from Mexico detained at the border is on pace to rise this year, a shift away from arrests of mostly Central American families and unaccompanied children in 2019.

Trump, a Republican, faces reelection on Nov. 3 and has made his efforts to restrict illegal immigration – including the construction of a wall on the U.S.-Mexico border – a focus of his 2020 campaign. His presumptive Democratic challenger, former Vice President Joe Biden, would end the diversion of billions of dollars in military funding for wall construction.

As the coronavirus spread across the United States in March, the Trump administration restricted non-essential travel across the borders with Mexico and Canada to contain the disease. At the same time, the administration put in place health-focused rules that allowed U.S. border authorities to rapidly expel migrants caught trying to cross illegally, arguing they could bring the virus into the United States.

The number of migrants caught by Border Patrol – particularly families and unaccompanied children – plummeted in April as the new measures went into effect and countries in the region initiated lockdowns.

Despite gradual increases seen both in May and June, the crossings still remain far below last year, when arrests peaked in May at 133,000.

(Reporting by Ted Hesson in Washington D.C.; Editing by Mica Rosenberg in New York and Daniel Wallis)

New U.S. CDC school reopening guidelines promised after Trump complains

By Doina Chiacu and Daphne Psaledakis

WASHINGTON (Reuters) – The U.S. Centers for Disease Control and Prevention plans to issue new guidelines for reopening schools, Vice President Mike Pence said on Wednesday, after President Donald Trump criticized the agency’s recommendations as too expensive and impractical.

Trump, a Republican who is seeking re-election in November, accused Democrats of wanting to keep schools shut for political reasons and threatened to cut off federal funding to schools that do not reopen, despite a surge in coronavirus cases.

“I disagree with @CDCgov on their very tough & expensive guidelines for opening schools. While they want them open, they are asking schools to do very impractical things. I will be meeting with them!!!” Trump said on Twitter.

Flanked by top administration health and education officials, Pence said the CDC next week will issue a “new set of tools … to give more clarity on the guidance going forward.

“The president said today we just don’t want the guidance to be too tough,” Pence said at a White House coronavirus task force briefing at the Department of Education.

CDC Director Robert Redfield stressed that agency guidelines were not requirements.

“It would be personally very disappointing to me, and I know my agency, if we saw that individuals were using these guidelines as a rationale for not reopening our schools,” Redfield said.

White House spokeswoman Kayleigh McEnany told reporters the White House did not pressure the CDC to revise its recommendations.

The CDC has made a number of recommendations for schools, including testing for COVID-19, dividing students into small groups, serving packaged lunches in classrooms instead of cafeterias, and minimizing sharing of school supplies.

It has advised that seats be spaced at least six feet apart and that sneeze guards and partitions be put in place when social distancing is not possible.

Administration officials said local leaders would tailor their decisions on how schools reopen.

“Ultimately it’s not a matter of if schools should reopen, it’s simply a matter of how. They must fully open,” Education Secretary Betsy DeVos said.

States are responsible for primary and secondary education under the U.S. Constitution, but some have been holding off on deciding when and how to open schools, concerned about the resurgence of coronavirus across the country.

The U.S. outbreak has crossed the 3 million mark in confirmed cases, with a death toll of 131,336, according to a Reuters tally.

“The Dems think it would be bad for them politically if U.S. schools open before the November Election, but is important for the children & families. May cut off funding if not open!” Trump said on Twitter.

Acknowledging that the lion’s share of school funding comes from states, Pence said that the administration would work with Congress to look for ways “to give states a strong incentive and encouragement to get kids back to school.”

“It’s time for us to get our kids back to school,” he said.

The federal government provides some supplementary funding for schools, including through congressional appropriations. With Democrats controlling the House of Representatives, any effort to curtail funding is sure to face roadblocks.

McEnany said Trump is “looking at potential redirecting (of funding) to make sure it goes to the student and it is most likely tied to the student and not to a district where schools are closed.”

Labor Secretary Eugene Scalia said school re-openings were necessary for the U.S. economic recovery. Business and conservative groups have said parents need to get back to work.

On Tuesday, Trump said he would pressure state governors to open schools in the fall.

However, the surge in U.S. cases has raised concerns about the increased risk of children spreading the virus to vulnerable adults at home as well as to older teachers and school staff.

New York Governor Andrew Cuomo said the federal government has no authority on schools and his state will announce its reopening plans in the first week of August.

In neighboring New Jersey, Governor Phil Murphy said he planned to reopen state schools in the fall, but reserved the right to “tweak that if it means saving lives.”

(Reporting by Doina Chiacu; Additional reporting by Jeff Mason; Editing by Bernadette Baum, Jonathan Oatis and Sonya Hepinstall)

U.S. Supreme Court allows prosecutor but not Congress to get Trump’s financial records

By Lawrence Hurley and Jan Wolfe

WASHINGTON (Reuters) – The U.S. Supreme Court on Thursday firmly rejected President Donald Trump’s argument for sweeping presidential immunity and ruled that a New York prosecutor can obtain his financial records but prevented – at least for now – Democratic-led House of Representatives committees from getting similar documents.

Both 7-2 rulings were authored by conservative Chief Justice John Roberts. The court made it clear that a sitting president cannot evade a criminal investigation, ruling that the subpoena issued to Trump’s long-term accounting firm, Mazars LLP, for various financial records to be turned over to a grand jury as part of a criminal investigation can be enforced.

But the court sidestepped a major ruling on whether three House committees could also obtain Trump financial documents under subpoena, giving Trump at least a short-term win. Litigation will now continue in lower courts in both cases.

In both rulings, Roberts was joined by the four liberal justices as well as Trump’s two conservative appointees to the court, Justices Brett Kavanaugh and Neil Gorsuch. Conservative Justices Clarence Thomas and Samuel Alito both dissented.

“This is a tremendous victory for our nation’s system of justice and its founding principle that no one – not even a president – is above the law,” said Manhattan District Attorney Cyrus Vance, a Democrat, in relation to the ruling in his case.

Vance and the House committees all issued subpoenas to third parties for the records, not the Republican president himself.

Trump turned to Twitter complained about the rulings, writing on Twitter: “Courts in the past have given ‘broad deference’. BUT NOT ME!” He added, “This is all a political prosecution … and now I have to keep fighting in a politically corrupt New York. Not fair to this Presidency or Administration!”

The New York case ruling does not mean the documents will be handed over immediately because of expected wrangling in lower courts. A final outcome could be delayed in both cases until after the Nov. 3 election in which Trump is seeking a second term in office.

“We will now proceed to raise additional constitutional and legal issues in the lower courts,” said Jay Sekulow, Trump’s personal lawyer.

House Speaker Nancy Pelosi said Democrats would not stop investigating Trump and would press forward in seeking to enforce the subpoenas.

“Congress’s constitutional responsibility to uncover the truth continues, specifically related to the President’s Russia connection that he is hiding,” Pelosi said, in reference to the contention that Trump’s financial records could show such an entanglement.

NO ‘ABSOLUTE’ IMMUNITY

Roberts rejected both the broad arguments for presidential immunity made by Trump’s lawyers and the sweeping arguments made in favor of the House’s ability to investigate the president.

Trump’s argument that he was immune from any criminal process “runs up against the 200 years of precedent establishing that Presidents, and their official communications, are subject to judicial process,” Roberts wrote in the New York case.

“We affirm that principle today and hold that the president is neither absolutely immune from state criminal subpoenas seeking his private papers nor entitled to a heightened standard of need,” Roberts added.

Roberts also rejected the suggestion that the decision would subject future presidents to harassment by local prosecutors, noting that the court in 1997 rejected a similar argument made by President Bill Clinton when he faced a civil lawsuit brought by Paula Jones, a woman who accused him of making unwanted sexual advances.

“Given these safeguards and the court’s precedents, we cannot conclude that absolute immunity is necessary or appropriate,” Roberts wrote.

Roberts’ analysis of the congressional subpoenas hinged on the competing political interests between different branches of government.

“Congressional subpoenas for the President’s personal information implicate weighty concerns regarding the separation of powers,” Roberts wrote. “Neither side, however, identifies an approach that accounts for these concerns.”

Unlike other recent presidents, Trump has refused to release his tax returns and other documents that could provide details on his wealth and the activities of his family real-estate company, the Trump Organization. The content of these records has remained a persistent mystery even as he seeks re-election.

House committees issued subpoenas seeking Trump’s financial records from his longtime accounting firm Mazars LLP and two banks, Deutsche Bank and Capital One.

As part of a criminal investigation by Vance’s office, subpoenas were issued to Mazars for financial records including nearly a decade of Trump’s tax returns to be turned over to a grand jury in New York City.

The investigation launched by Vance’s office in 2018 into Trump and the Trump Organization was spurred by disclosures of hush payments to two women who said they had past sexual relationships with him, pornographic film actress Stormy Daniels and former Playboy model Karen McDougal. Trump and his aides have denied the relationships.

In the litigation over the House subpoenas, Trump argued that Congress lacked a valid purpose for seeking his records and that disclosure of the material would compromise his and his family’s privacy and distract him from his duties.

In the New York case, Trump’s lawyers argued that under the Constitution he is immune from any criminal proceeding while serving as president. In a lower court hearing, Trump’s lawyers went so far as to argue that law enforcement officials would not have the power to investigate Trump even if he shot someone on New York’s Fifth Avenue.

The House Oversight Committee in April 2019 issued a subpoena to Mazars seeking eight years of accounting and other financial information in response to the congressional testimony of Michael Cohen, Trump’s former lawyer. Cohen said Trump had inflated and deflated certain assets on financial statements between 2011 and 2013 in part to reduce his real estate taxes.

The House Financial Services Committee has been examining possible money laundering in U.S. property deals involving Trump. In a separate investigation, the House Intelligence Committee is investigating whether Trump’s dealings left him vulnerable to the influence of foreign individuals or governments.

(Reporting by Jan Wolfe and Lawrence Hurley in Washington; Additional reporting by Andrew Chung; Editing by Will Dunham)