Exclusive: U.S. offers to fund Mexico heroin fight as 2016 output jumps – U.S. official

FILE PHOTO: Policemen keep watch on the perimeter of a scene during a shooting with federal forces in Tepic, in Nayarit state, February 10, 2017. REUTERS/Hugo Cervantes/File Photo

By Gabriel Stargardter

MEXICO CITY (Reuters) – The United States has offered to help fund Mexico’s efforts to eradicate opium poppies, the U.S. assistant secretary for International Narcotics and Law Enforcement Affairs (INL) said on Friday, as Mexican heroin output increased again last year.

“We would be prepared to support (opium eradication efforts) should we reach a basic agreement in terms of how they would do more and better eradication in the future,” William Brownfield of INL, part of the State Department, said in an interview.

“That is on the table, but I don’t want you to conclude that it’s a done deal, because we still have to work through the details,” he said, without specifying how much money the United States could provide.

The United States is in the midst of an opiates epidemic that has killed tens of thousands of people, and with much of its heroin coming from the mountains of Mexico, the issue has become a key topic of discussion between the Mexican government and the administration of U.S. President Donald Trump.

The U.S. offer to help fund Mexico’s war on poppy cultivation stands in stark contrast to Trump’s threats to rip up the North American Free Trade Agreement and force Mexico to pay for a wall along the U.S. border, and reveals the more subtle discussions taking place between the two governments.

Mexico’s president’s office, the Interior Ministry and the Foreign Ministry did not immediately respond to requests for comment.

Speaking on condition of anonymity because the figures are not yet public, a U.S. official said separately that the area of opium poppies under cultivation in Mexico reached 32,000 hectares in 2016, equivalent to about 81 tonnes.

In 2015, Mexico had 28,000 hectares under cultivation, almost triple the area in 2012, according to U.S. data.

Support for eradicating Mexico’s opium crop could come in various forms, Brownfield said. For example, the U.S. government could provide more vehicles, or pay for helicopter flights to access the isolated, mountainous regions where poppy is grown.

“If it’s a matter of having other sorts of equipment, we could talk about support in terms of equipment,” he said.

The INL will not write Mexico a blank check but is willing to help fund specific units involved in eradication, he said.

Mexico is engaged in fraught discussions with the Trump administration over drug trafficking, trade and immigration, and Trump focused on the heroin scourge in his election campaign.

Nonetheless, Brownfield said the two governments were making substantial progress.

“Our cooperation with the Mexican government on the heroin challenge is in fact good, and it is better than it has ever been in the past,” he said.

Brownfield also confirmed a Reuters report that Mexico’s army is allowing the United States and the United Nations to observe eradication efforts.

(Reporting by Gabriel Stargardter; Editing by Lisa Shumaker)

Pence says United States will honor refugee deal with Australia

U.S. Vice President Mike Pence (L) shakes hands with Australia's Prime Minister Malcolm Turnbull after a media conference at Admiralty House in Sydney, Australia, April 22, 2017. REUTERS/Jason Reed

By Colin Packham and Roberta Rampton

SYDNEY (Reuters) – U.S. Vice President Mike Pence said on Saturday the United States would honor a controversial refugee deal with Australia, under which the United States would resettle up to 1,250 asylum seekers, a deal President Donald Trump had described as “dumb”.

Pence told a joint news conference with Australian Prime Minister Malcolm Turnbull that the deal would be subject to vetting, and that honoring it “doesn’t mean that we admire the agreement”.

“We will honor this agreement out of respect to this enormously important alliance,” Pence said at Turnbull’s harbor side official residence in Sydney.

Australia is one of Washington’s staunchest allies and has sent troops to fight alongside the U.S. military in conflicts in Iraq and Afghanistan.

Under the deal, agreed with former President Barack Obama late last year, the United States would resettle up to 1,250 asylum seekers held in offshore processing camps on South Pacific islands in Papua New Guinea (PNG) and Nauru.

In return, Australia would resettle refugees from El Salvador, Guatemala and Honduras.

The White House has already said it would apply “extreme vetting” to those asylum seekers held in the Australian processing centers seeking resettlement in the United States.

The deal has taken on added importance for Australia, which is under political and legal pressure to shut the camps, particularly one on PNG’s Manus Island where violence between residents and inmates flared last week.

Asylum-seeker advocates welcomed the U.S. commitment, although they remained concerned that “extreme vetting” could see fewer than 1,250 resettled in the United States.

“What still isn’t clear is how many people will have this opportunity, and that clarity must be provided,” said Graham Thom, Refugee Coordinator at Amnesty International Australia.

“The violence on Manus Island last weekend only further demonstrates that the Australian government needs to give a clear commitment that no refugee or person seeking asylum will be left behind in Papua New Guinea or Nauru,” he said.

ACRIMONIOUS CALL

An inquiry by an upper house Senate committee in Australia said the government must be more transparent about the operations of the processing centers in PNG and Nauru, which are run by contractors.

The report, released on Friday, also said the Australian government had a duty of care to the asylum seekers being held in the camps.

Australia’s relationship with the new administration in Washington got off to a rocky start when Trump lambasted Turnbull over the resettlement arrangement, which Trump labeled a “dumb” deal.

Details of an acrimonious phone call between the pair soon after Trump took office made headlines around the world.

Turnbull acknowledged Trump’s reluctance, but said the U.S. commitment was a measure of Trump’s new U.S. administration.

“It speaks volumes for the commitment, the integrity of President Trump,” he said.

Pence was speaking on the final leg of a 10-day tour of the Asia-Pacific region that included meetings with political and business leaders in South Korea, Japan and Indonesia.

His trip to Australia is the first by a senior official in the Trump administration as the United States looks to strengthen economic ties and security cooperation amid disputes in the South China Sea and tension on the Korean peninsula.

(Reporting by Roberta Rampton and Colin Packham; Additional reporting by Peter Gosnell; Writing by Paul Tait; Editing by Jacqueline Wong)

Exclusive: Vomitoxin makes nasty appearance for U.S. farm sector

FILE PHOTO -- Cobs of corn are held at a corn field in in La Paloma city, Canindeyu, about 348km (216 miles) northeast of Asuncion August 7, 2012. Corn export is second only to soybean export in Paraguay. REUTERS/Jorge Adorno/File Photo

By P.J. Huffstutter and Michael Hirtzer

CHICAGO (Reuters) – A fungus that causes “vomitoxin” has been found in some U.S. corn harvested last year, forcing poultry and pork farmers to test their grain, and giving headaches to grain growers already wrestling with massive supplies and low prices.

The plant toxin sickens livestock and can also make humans and pets fall ill.

The appearance of vomitoxin and other toxins produced by fungi is affecting ethanol markets and prompting grain processors to seek alternative sources of feed supplies.

Researchers at the U.S. Department of Agriculture first isolated the toxin in 1973 after an unusually wet winter in the Midwest. The compound was given what researchers described as the “trivial name” vomitoxin because pigs were refusing to eat the infected corn or vomiting after consuming it. The U.S. Corn Belt had earlier outbreaks of infection from the toxin in 1966 and 1928.

A vessel carrying a shipment of corn from Paraguay is due next month at a North Carolina port used by Smithfield Foods Inc [SFII.UL], the world’s largest pork producer.

The spread of vomitoxin is concentrated in Indiana, Wisconsin, Ohio, and parts of Iowa and Michigan, and its full impact is not yet known, according to state officials and data gathered by food testing firm Neogen Corp.

In Indiana, 40 of 92 counties had at least one load of corn harvested last fall that has tested positive for vomitoxin, according to the Office of Indiana State Chemist’s county survey. In 2015 and 2014, no more than four counties saw grain affected by the fungus.

And in a “considerable” share of corn crops tested in Michigan, Wisconsin and Indiana since last fall’s harvest, the vomitoxin levels have tested high enough to be considered too toxic for humans, pets, hogs, chickens and dairy cattle, according to public and private data compiled by Neogen. The company did not state what percent of each state’s corn crop was tested.

Smithfield would not confirm it had ordered the corn from Paraguay, but two independent grain trading sources said Smithfield was the likely buyer. A company source said corn Smithfield has brought in from Indiana and Ohio, to feed pigs in North Carolina, has been “horrible quality” due to the presence of mycotoxins.

TOXIN LEVELS

The U.S. Food and Drug Administration allows vomitoxin levels of up to 1 part per million (ppm) in human and pet foods and recommends levels under 5 ppm in grain for hogs, 10 ppm for chickens and dairy cattle. Beef cattle can withstand toxin levels up to 30 ppm.

Alltech Inc, a Kentucky-based feed supplement company, said 73 percent of feed samples it has tested this year have vomitoxin. The company analyzed samples sent by farmers whose animals have fallen ill.

“We know there is lots of bad corn out there, because corn byproducts keep getting worse,” said Max Hawkins, a nutritionist with Alltech.

Neogen, which sells grain testing supplies, reported a 29 percent jump in global sales for toxin tests – with strong demand for vomitoxin tests – in their fiscal third quarter, ending Feb. 28.

“We’re polling our customers and continually talking to them about the levels they’re seeing. Those levels are not going down,” said Pat Frasco, director of sales for Neogen’s milling, grain and pet food business.

The problem, stemming from heavy rain before and during the 2016 harvest, prompted farmers to store wet grain, said farmers, ethanol makers and grain inspectors.

The issue was compounded by farmers and grain elevators storing corn on the ground and other improvised spaces, sometimes covering the grain piles with plastic tarps. Grain buyers say they will have a clearer picture of the problem later this spring, as more farm-stored grain is moved to market.

Iowa State University grain quality expert Charles Hurburgh said the sheer size of the harvest in 2016 – the largest in U.S. history – complicates the job of managing toxins in grain, especially in the core Midwest.

“Mycotoxins are very hard to handle in high volume,” he said. “You can’t test every truckload, or if you do, you are only going to unload 20 trucks in a day.” By comparison, corn processors in Iowa unload 400 or more trucks a day.

BIOFUEL IMPACTS

Ethanol makers already are feeling the impact. Turning corn into ethanol creates a byproduct called distillers dried grains (DDGs), which is sold as animal feed. With fuel prices low, the DDGs can boost profitability.

But the refining process triples the concentration of mycotoxins, making the feed byproduct less attractive. DDG prices in Indiana fell to $92.50 per ton in February, the lowest since 2009, and now are selling for $97.50 per ton, according to USDA.

Many ethanol plants are testing nearly every load of corn they receive for the presence of vomitoxin, said Indiana grain inspector Doug Titus, whose company has labs at The Andersons Inc, a grain handler, and energy company Valero Energy sites.

The Andersons in a February call with analysts said vomitoxin has hurt results at three of its refineries in the eastern U.S. “That will be with us for some time,” Andersons’ chief executive Pat Bowe said.

Missouri grain farmer Doug Roth, who put grain into storage after last year’s wet harvest, has seen a few loads of corn rejected by clients who make pet food after the grain tested positive for low levels of fumonisin, a type of mycotoxin.

Roth said he paid to reroute the grain to livestock producers in Arkansas, who planned to blend it with unaffected grain in order to mitigate the effect of the toxins.

“As long as this doesn’t become a widespread problem, we’re all fine,” said Roth, who said toxins have shown up in less than 1 percent of the grain loads he has sold.

U.S. farmers with clean corn are reaping a price bump. A Cardinal Ethanol plant in Union City, Indiana, is offering grain sellers a 10-cent per bushel premium for corn with less than one-part-per-million (ppm) or less of vomitoxin in it, according to the company’s website.

(Additional reporting by Karl Plume and Julie Ingwersen in Chicago; Editing by Matthew Lewis)

Power outage cripples San Francisco for seven hours

Office workers wait for building elevators to resume working during a power cut in downtown San Francisco, California, U.S. April 21, 2017. REUTERS/Alexandria Sage

By Alexandria Sage and Noel Randewich

SAN FRANCISCO (Reuters) – A massive power outage threw San Francisco into chaos for most of the work day on Friday, knocking out traffic signals, paralyzing businesses and halting the city’s famed cable cars.

The power outage, which was triggered by a fire in a PG&E Corp. utility substation, disrupted San Francisco’s normally bustling financial district, home to banks and technology companies.

The blackout started just after 9 a.m. (noon ET/1600 GMT) and at one point affected nearly 90,000 customers, according to PG&E. The cause of the fire was a circuit breaker failure at the substation, PG&E spokesman Paul Doherty said.

Office workers unable to access elevators or use their keycards spilled out onto the sidewalks, some wandering the streets in search of an open cafe or sunny spot to enjoy a rare warm San Francisco day.

Others simply went home, with long lines forming for ferries. For many, there was little to do but wait.

“When I got here we had to shut down all the servers, all the work stations were off-line,” said Bard Wood, an information technology worker in the financial district. “I’m sure we’ve lost millions of dollars already. There’s no business down here right now.”

Some cable car operators snoozed after their cars stalled on the street rails.

Traffic was snarled and emergency workers responded to 20 elevator rescues, according to the city’s fire department, but there were no reported deaths or major injuries. But many businesses, from coffee shops to major banks, took a hit.

Wells Fargo & Co closed 13 bank branches and four office buildings, while the New York Stock Exchange said its ARCA options trading floor in San Francisco was briefly unavailable. Employees in Goldman Sachs’ financial district office were sent home.

King Lip, chief investment officer at Baker Avenue Asset Management, said his firm was in the middle of a trade when “all our systems went down.” He said employees in another state had to complete the transaction.

Two office buildings and a local branch of First Republic Bank were shut down, a sign on the branch’s doorway apologizing for the unexpected closure.

Fourteen neighborhoods were affected, including the main shopping district near Union Square, where stores turned signs to “closed” and major retailers such as Macy’s and Louis Vuitton shut their doors.

In a city proud of its technological prowess, the outage forced residents back to the dark ages. At the salad bar MIXT, cashiers took credit card payments using old-fashioned paper imprints.

“Old school,” commented patron Ben Fackler. “I haven’t seen that in forever.”

DARKENED BY ONE SUBSTATION

For more than two hours, trains barreled through the Montgomery Street station – one of the busiest stops that services the downtown and financial district – as the outage prevented them from stopping until backup generators came on line, Bay Area Rapid Transit spokesman Jim Allison said.

Power was finally restored to all customers by 6 pm local time, PG&E said.

“Workers have entered the substation. They’re assessing the damage and starting to make repairs,” Doherty said.

San Francisco International Airport remained operational, and a U.S. Department of Homeland Security spokesperson said there was no evidence of terrorism. The spokesperson requested anonymity, citing department policy.

“This had nothing to do with cyber,” said Joe Weiss, an expert on control system cyber security who has testified to Congress about structural weaknesses in grid components.

“The real question is how could one substation take out, effectively, San Francisco?”

An FBI spokesman said the agency monitored the incident but is not investigating.

Twenty-one San Francisco schools lost power, but remained open nonetheless, according to a Department of Emergency spokesman. At least three hospitals had to rely on backup generators, canceling elective surgeries and redirecting emergency patients to other facilities.

Joanna Gadd, 55, was in the admitting room of the city’s Saint Francis Memorial Hospital waiting for her daughter to undergo surgery when the lights went out.

The diagnostic surgery was canceled. She had forfeited a trip to the United Kingdom, including airfare, to accommodate the operation.

“It is frustrating,” Gadd said. “It’s quite nerve-racking going into surgery. She had been fasting, and fasting for someone with diabetes is definitely no picnic.”

(Additional reporting by Jeffrey Dastin, David Ingram, Joe Menn, Robin Respaut, Peter Henderson and Liana Baker in San Francisco, Rodrigo Campos in New York, Tom James in Seattle and Nichola Groom in Los Angeles; Writing by Dan Whitcomb and Heather Somerville; Editing by Mary Milliken)

Trump to order U.S. Treasury to delve into taxes, post-crisis reforms

U.S. President Donald Trump holds a joint news conference in Washington, U.S., April 20, 2017. REUTERS/Aaron P. Bernstein

By Lisa Lambert

WASHINGTON (Reuters) – U.S. President Donald Trump will order the Treasury on Friday to find and reduce tax burdens and review post-financial crisis reforms that banks and insurance companies have said hinder their ability to do business.

A White House official said on Thursday that Trump will issue an executive order directing the Treasury on the tax issues. He will also issue two memoranda asking for reviews of two parts of the 2010 Dodd-Frank Wall Street reform law – the Orderly Liquidation Authority that sets out how big banks can wind down during a crisis and the Financial Stability Oversight Council (FSOC), which is made up of the country’s top regulators.

The orders, which Trump will sign at the Treasury Department, next door to the White House, comes as the president works toward making good on a major campaign promise to lower taxes.

Treasury Secretary Steven Mnuchin will review significant tax regulations issued in 2016 to determine if any impose an undue financial burden on American taxpayers, add undue complexity or exceed statutory authority, the official’s statement said.

Mnuchin said earlier on Thursday that Treasury is working on tax reform “day and night” and will soon create a sweeping overhaul.

Congress recently failed in efforts to make good another Trump campaign promise to reform healthcare.

House of Representatives Speaker Paul Ryan said this week that the country’s first tax overhaul in decades may not be done until well into 2017. The review that Trump is ordering gives the administration a way to approach the issue independent of Congress.

The liquidation authority and the FSOC were both created as part of the Dodd-Frank law intended to prevent a repeat of the 2007-09 financial crisis, when the U.S. government injected billions of dollars in aid into failing banks to keep them from destroying the country’s economy.

In February Trump ordered a review of the law, saying he wanted to cut out much of it, and Mnuchin has said he would like to look into how the council, which he chairs, works.

House Republicans are also working to loosen Dodd-Frank regulations. Banks say the regulations have hurt their liquidity and created burdensome processes.

Trump will order an assessment of how the FSOC designates a financial institution as “systemically important,” which triggers requirements to hold more capital in case it comes into crisis.

Republican lawmakers say the FSOC uses a flawed process lacking transparency to designate non-bank institutions. Only two insurers, American International Group Inc and Prudential Financial Inc, currently carry the label, and a judge last year struck down the council’s designation of MetLife Inc.

Mnuchin will have 180 days to report to Trump on the liquidation authority, a tool for federal banking regulators to use if they need to step in during a financial emergency and help a failing bank unwind. The report will offer views on using bankruptcy as an alternative, the impact of failing companies on financial stability, and whether the authority could drive up taxpayer costs or encourage excessive risk-taking.

(Writing by Eric Beech and Lisa Lambert; Editing by Cynthia Osterman and Leslie Adler)

Special Report: Thousands face lead hazards as Trump eyes budget cuts

MD Chowdhury sits in his living room with his wife, Nazneen Fatema, and daughters, Nafia, 2, and Nabiha (R), 7, during an interview about lead safety improvements made to their lead contaminated home in Buffalo, New York March 30, 2017. REUTERS/Lindsay DeDario

By M.B. Pell, Joshua Schneyer and Andy Sullivan

BUFFALO, New York (Reuters) – Laicie Manzella lived in a rundown house on Buffalo’s east side when three of her children tested with dangerously high levels of lead in their blood. Her oldest son suffered nosebleeds, body rashes and a developmental disorder requiring speech therapy.

Checking her apartment, county health inspectors found 15 lead violations, all linked to old paint in this blue collar city plagued by lead poisoning.

A Reuters investigation found at least four city zip codes here where 40 percent of children tested from 2006 to 2014 had high lead levels, making Buffalo among the most dangerous lead hotspots in America. The rate of high lead tests in these areas was far worse – eight times greater – than that found among children across Flint, Michigan, during that city’s recent water crisis.

Federal support has helped Manzella and other families in Buffalo and beyond. This month, her family moved into a gleaming, lead-free apartment renovated by a local nonprofit with funding from the U.S. Department of Housing and Urban Development.

This type of assistance may not last much longer. President Donald Trump is advocating deep federal budget cuts that would sap billions from programs used by state and local governments to protect children from the lifelong health impacts of lead exposure.

“If they go and snatch these funds away, where are we going to get help from?” Manzella said.

It’s a question being asked in cities across the United States bracing for cuts in programs that identify and eradicate lead poisoning hazards. Awareness of lead poisoning escalated following Flint’s crisis, and more recently from Reuters reporting that has identified more than 3,300 areas with childhood lead poisoning rates at least double those found in the Michigan city.

Some of the areas slated to be hit hardest supported Trump in November’s election, though he lost Erie County, where Buffalo is the county seat.

At least eight of the nine federal agencies sharing responsibility for lead poisoning prevention face potential budget cuts. But the heaviest lifting falls to HUD, the Centers for Disease Control and Prevention, and the Environmental Protection Agency. Trump’s budget would cut at least $4.7 billion from programs at HUD and the EPA that support healthy housing and lead pollution cleanup efforts, a Reuters analysis found. Funding for a CDC program that assists states with poisoning prevention is uncertain.

Cuts would be felt across the country. The Trump administration would eliminate a $27 million program that trains private contractors on lead removal, and a $21 million program that funds lead abatement projects in Alaska, Illinois, Ohio, Oklahoma and California. It would kill a program that provided funds to a Rhode Island nonprofit to upgrade housing, and end a $970 million affordable-housing program that has fixed up dilapidated homes in hundreds of U.S. cities, including Flint.

If the cuts clear Congress, some experts fear the fight against lead could stall out for years.

“We are dooming future generations,” said Dr. Gale Burstein, health commissioner in Erie County. “Exposure to high lead levels causes brain damage to kids, learning disabilities and behavioral challenges.”

Instead of saving money, the cost of inaction could spiral, Burstein said. More children would be afflicted by learning disabilities and other neurological problems, leaving localities to foot the bill for treatment programs.

White House officials declined to comment.

Decades of lead abatement have sharply curbed childhood lead levels across the United States. But studies have shown no level of lead in the blood is safe, and poisoning persists in thousands of locales.

PINPOINTING HOTSPOTS

In December, Reuters used previously undisclosed data obtained from 21 states to pinpoint nearly 3,000 U.S. neighborhoods where poisoning rates among tested children were at least twice as high as in Flint.

Reporters have since obtained testing results covering eight additional states and expanded data from two more, including New York, Louisiana, New Jersey, Virginia, New Hampshire and California. The new data reveal another 449 neighborhoods with rates that high.

The communities stretch from affluent neighborhoods in the Los Angeles area to an impoverished quarter of Shreveport, Louisiana, to a rural town in Salem County, New Jersey, where Trump won 56 percent of the vote in November.

The data paints a partial picture. Reuters has not obtained neighborhood-level testing results for 21 states and the District of Columbia. These areas cited privacy concerns or said they do not have the data.

Still, the available results show the toxic metal remains a threat to millions of children.

Federal programs fund testing for children, cleanup of industrial lead hazards and poisoning-awareness efforts. Other programs require inspections or abatement in housing built before 1978, when lead was banned from residential paint.

The few planned funding increases under Trump may not be as beneficial as they appear. HUD’s Healthy Homes and Lead Hazard Control Program is slated to receive a $20 million boost, but the agency has proposed eliminating $4.1 billion worth of grant programs local officials say play a bigger role in reducing risks.

“I think you’re going to see more children, not fewer children, exposed to lead,” said Senator Jack Reed, a Democrat who has sought more funding for lead-abatement programs on the Senate subcommittee that funds HUD.

Congress, which controls federal spending, may not go along. A spokeswoman for Senator Susan Collins described lead-based hazards as “one of the most prevalent health issues facing children today.” She said the Maine Republican would use her position as head of the subcommittee that controls HUD’s budget to oppose cuts.

BUFFALO A HOTBED FOR LEAD

Buffalo has long fought a legacy of lead contamination. Blood data shows 17 city zip codes where the rate of tested children with high lead levels was at least double that of Flint – about 8,000 children over nine years.

“Nobody’s talking about Buffalo as ground zero for the lead problem, but when it comes to the levels of lead that’s been identified in children, it’s higher than what you see in Flint,” said Erie County Executive Mark Poloncarz.

Buffalo’s problem stems from a simple equation: Old houses plus high poverty equal lead poisoning. Older homes are often blanketed with lead paint, and the water pipes and fixtures typically contain lead. In poorer neighborhoods, homes are frequently neglected, leading to exposure from peeling paint or dust. Fifty-eight percent of the city’s housing was built before 1940; nearly 40 percent of residents live below the poverty line.

Still, Buffalo and Erie County have made progress. In 2007, three city zip codes had 50 percent of tested children with high lead levels. By 2014, the prevalence in those zip codes dropped to an improved, but still worrisome, 30 percent.

Progress came thanks to millions of dollars in federal assistance flowing to local programs.

From 2012 through 2016, Buffalo was granted $27.7 million from the now-threatened HUD HOME Investment and Partnerships Program. HUD’s blessing brought far greater resources to bear, with city, county and nonprofits using the grant to attract another $200 million to revitalize or replace 1,125 housing units, making them all lead-safe.

Among those helped: The Chowdhurys, a family of five who moved to the east side of Buffalo in 2010, settling in a neighborhood with one of the highest lead poisoning rates in the country.

Within two months, their one-year-old daughter, Nabiha, was found to have a lead level about twice that of the elevated threshold set by the CDC, five micrograms per deciliter. Any child at or above CDC’s threshold warrants a public health response, the agency says.

MD Chowdhury, a restaurant waiter, and his wife, Nazneen Fatema, didn’t know how their daughter was poisoned or how to help her, but Buffalo and Erie County did.

Local officials dispatched housing inspectors, nurses and contractors to identify and repair the lead hazards in the family’s home. Replacing the lead-paint coated windows and siding and installing a new roof cost about $40,000. Federal grant programs footed the bill.

Erie County’s Health Department receives $244,000 a year from the CDC to help fund five full-time employees and three part-time employees who refer at-risk children for testing, investigate the causes of lead poisoning and conduct educational home visits. Those staffers helped the family.

Chowdhury also took EPA-funded classes on how to safely remove lead-based-paint so he could do additional work himself.

Two years ago, the couple had another daughter. She has never tested high.

“Without these programs, it’s hard to know about lead, and my income is not enough to do all of the work we needed,” Chowdhury said.

Trump’s budget proposal would kill much of the funding that helped the family through its ordeal.

Buffalo Mayor Byron Brown said the case illustrates the larger peril of potential funding cuts. “There would be people who would fall through the cracks,” he said.

CARSON’S MIXED MESSAGE

While working as a pediatric neurosurgeon in Baltimore, Dr. Benjamin Carson saw the irreversible damage lead can cause in the brains of children living in substandard housing.

At his confirmation hearing in February to serve as Trump’s secretary of HUD, Carson told the Senate Banking Committee he would be “vigorous” in his efforts to reduce the tally of hundreds of thousands of poisoned children across the country.

“I’m looking forward to, you know, the Safe and Healthy Homes Program at HUD and enhancing that program very significantly,” Carson said.

But even Carson’s requested $20 million increase for HUD’s lead removal program falls short of the $29 million his agency says is needed to comply with a new policy that requires lead remediation of HUD properties where children have tested above the CDC threshold.

Other housing programs that play a bigger, if more indirect, role in protecting children’s health would be eliminated altogether.

Among them: the $125 million Choice Neighborhoods program, which provided funding to remove lead paint from New Orleans’ aging Iberville housing project, and the $970 million HOME Partnerships program, which helped the Chowdhurys clean up their house in Buffalo.

The biggest casualty could be HUD’s $3 billion Community Development Block Grant program.

Local officials use CDBG grants to fund projects from curb construction to rehabilitating old housing, with only a small portion, $10 million, directly used for lead safety standards in the most recent fiscal year.

But CDGB is crucial to poisoning prevention, since housing-related projects it helps are required to meet HUD guidelines for lead safety, said Marion McFadden, who oversaw HUD’s grant programs under President Barack Obama.

“If (cuts are) enacted, it would be a huge step backward,” McFadden said.

CDBG funds went toward lead-paint removal in cities including Milwaukee, Syracuse and Shreveport, Louisiana. All three had neighborhoods with documented lead poisoning rates at least twice Flint’s.

BUDGET CUTS IN AMISH COUNTRY

Health officials in the small city of York, Pennsylvania, two hours west of Philadelphia in Amish country, know how budget cuts like this can play out.

The city and surrounding York County, where Trump won 70 percent of the vote in November, have a serious lead poisoning problem. From 2005 through 2014, at least 30 percent of children tested in all but one of York’s census tracts had elevated lead exposure, according to CDC data. In one census tract, more than half of all tested children had high lead levels.

Trump lost the city of York, but other patches of the county hit hard by lead poisoning, including the borough of Red Lion, where 21 percent of children tested had high levels, overwhelmingly supported him.

In the mid 1990s, York had seven full-time and part-time employees working in the city’s lead prevention program who conducted screening and investigated lead exposure sources. Since then, CDC cuts have left the program with one part-time employee and no ability to conduct screening.

The results are telling. In 2005, 1,641 city children were screened for lead. In 2014, 169 kids received a lead test.

Trump’s plan to eliminate the $375,000 in Home Partnership funds the city uses to develop lead-safe housing would have dire consequences, said James Crosby, deputy director of the city’s Bureau of Housing Services.

“It would mean we would be out of business,” Crosby said. “If he eliminates the home program, we would have absolutely nothing.”

A HUD spokesman declined to comment on the impact the cuts would have. “HUD will continue to work very closely with state and local health and housing officials through targeted investments in specific programs to reduce childhood lead poisoning,” he said.

CUTS AT THE EPA

A similar pattern is emerging at the EPA, where Administrator Scott Pruitt is highlighting some lead remediation efforts while pushing to gut funding to enforce pollution laws and clean up contaminated sites.

During the confirmation process, Pruitt told lawmakers he would work to reduce exposure to lead. On Wednesday he visited East Chicago, Indiana, where the EPA has secured $42 million from chemical companies to remove contaminated soil from neighborhoods near a former lead-smelting plant. In one neighborhood, up to 20 percent of tested children had elevated lead-blood levels.

Trump’s budget proposal would preserve funding for the EPA program that helps cities like Flint buy new water pipes.

But Pruitt would slash other federal efforts, including a one-third cut of EPA’s Superfund and Brownfield programs, leaving hundreds of millions of dollars less to clean up areas contaminated by lead mining in southeast Missouri, tainted yards and parks in Omaha and old school buildings on the Standing Rock Sioux reservation in North Dakota.

Pruitt would also eliminate a $27 million program that trains private contractors on safe lead removal from buildings, internal documents show.

An EPA spokesman said the agency is weighing strategies to save taxpayers money while protecting the environment. “We’re trying to restore some accountability to these and other programs so that we can examine what has worked – and most especially, what hasn’t,” wrote spokesman J.P. Freire.

Funding levels for the CDC, which spent $17 million last year through the Childhood Lead Poisoning Prevention program to help state and local governments, have been the subject of great uncertainty.

Earlier this year Trump lobbied for a Republican health-care bill that would have repealed the Affordable Care Act. In the process, the bill would have eliminated the pool of public-health money that funds the CDC’s lead program. In March, the bill collapsed in the House of Representatives.

Last week, a White House official told Reuters the administration intends to keep funds flowing to the CDC program. By Monday, however, the official had backed away from that commitment and said the program’s fate is uncertain until the administration produces a more detailed budget proposal in May.

The last round of cuts to the CDC’s lead budget in 2011 slashed assistance to many state poisoning prevention programs.

Those cuts were a reason why Flint’s problems didn’t come to light sooner, said Mary Jean Brown, a public health specialist at Harvard University who directed CDC’s lead program at the time. Without the CDC lead program, Michigan conducted less monitoring of childhood blood levels from 2011 to 2014, and stopped reporting test results to the CDC.

This created “a big gap in data,” Brown said, contributing to Flint’s crisis going unchecked or being ignored by Michigan officials until a pediatrician, scientists and activists presented proof children had been sickened.

(Editing by Ronnie Greene)

Turkey’s Erdogan to meet U.S. President Trump on May 16-17

FILE PHOTO: Turkish President Tayyip Erdogan speaks during a news conference in Istanbul, Turkey, late April 16, 2017. REUTERS/Murad Sezer/File Photo

ANKARA (Reuters) – Turkish President Tayyip Erdogan said on Thursday he would meet his U.S. counterpart Donald Trump in Washington on May 16-17, in their first meeting since Trump took office in January.

Ties between the United States and Turkey have deteriorated sharply since a failed military coup in July and disagreements over U.S. support for a Kurdish militia group fighting Islamic State in Syria. Turkey sees the group as an extension of the outlawed PKK, which has waged a three-decade insurgency for Kurdish autonomy in southeastern Turkey.

Ankara is also pressing for the extradition of Fethullah Gulen, a Muslim cleric living in the United States who is accused by Erdogan of engineering the failed coup.

However, Erdogan sees prospects for improvement in ties between the NATO allies under Trump. The two leaders have talked on the telephone three times since Trump took office in late January, including a call on Monday after Erdogan secured a narrow win in a referendum on constitutional changes to give the president sweeping new powers.

Speaking in an interview with broadcaster A Haber, Erdogan said challenging the results of the referendum was beyond the remit of Turkey’s Constitutional Court and the European Court of Human Rights, after Turkey’s main opposition vowed to take legal action against what it said were irregularities.

“This is nothing but an attempt to make an election with 86 percent participation into a controversial matter,” he said.

Under the changes, the president will appoint the cabinet and vice-presidents and select and remove senior civil servants without parliamentary approval. Erdogan will also be allowed to reassume leadership in the AK Party he co-founded, where under the existing order he is nominally committed to party neutrality.

(Reporting by Ece Toksabay and Tuvan Gumrukcu; Editing by Isabel Coles)

Last stand: Nebraska farmers could derail Keystone XL pipeline

Art and Helen Tanderup are against the proposed Keystone XL Pipeline that would cut through the farm where they live near Neligh, Nebraska, U.S. April 12, 2017. REUTERS/Lane Hickenbottom

By Valerie Volcovici

Neligh, NEBRASKA (Reuters) – When President Donald Trump handed TransCanada Pipeline Co. a permit for its Keystone XL pipeline last month, he said the company could now build the long-delayed and divisive project “with efficiency and with speed.”

But Trump and the firm will have to get through Nebraska farmer Art Tanderup first, along with about 90 other landowners in the path of the pipeline.

They are mostly farmers and ranchers, making a last stand against the pipeline – the fate of which now rests with an obscure state regulatory board, the Nebraska Public Service Commission.

The group is fine-tuning an economic argument it hopes will resonate better in this politically conservative state than the environmental concerns that dominated the successful push to block Keystone under former President Barack Obama.

Backed by conservation groups, the Nebraska opponents plan to cast the project as a threat to prime farming and grazing lands – vital to Nebraska’s economy – and a foreign company’s attempt to seize American private property.

They contend the pipeline will provide mainly temporary jobs that will vanish once construction ends, and limited tax revenues that will decline over time.

They face a considerable challenge. Supporters of the pipeline as economic development include Republican Governor, Pete Ricketts, most of the state’s senators, its labor unions and chamber of commerce.

“It’s depressing to start again after Obama rejected the pipeline two years ago, but we need keep our coalition energized and strong,” said Tanderup, who grows rye, corn and soybeans on his 160-acre property.

Now Tanderup and others are gearing up for another round of battle – on a decidedly more local stage, but with potentially international impact on energy firms and consumers.

The latest Keystone XL showdown underscores the increasingly well-organized and diverse resistance to pipelines nationwide, which now stretches well beyond the environmental movement.

Last year, North Dakota’s Standing Rock Sioux, a Native American tribe, galvanized national opposition to the Energy Transfer Partners Dakota Access Pipeline. Another ETP pipeline in Louisiana has drawn protests from flood protection advocates and commercial fishermen.

The Keystone XL pipeline would cut through Tanderup’s family farm, near the two-story farmhouse built in the 1920s by his wife Helen’s grandfather.

The Tanderups have plastered the walls with aerial photos of three “#NoKXL” crop art installations they staged from 2014 to 2016. Faded signs around the farm still advertise the concert Willie Nelson and Neil Young played here in 2014 to raise money for the protests.

The stakes for the energy industry are high as the Keystone XL combatants focus on Nebraska, especially for Canadian producers that have struggled for decades to move more of that nation’s landlocked oil reserves to market. Keystone offers a path to get heavy crude from the Canada oil sands to refiners on the U.S. Gulf Coast equipped to handle it.

TransCanada has route approval in all of the U.S. states the line will cross except Nebraska, where the company says it has been unable to negotiate easements with landowners on about 9 percent of the 300-mile crossing.

So the dispute now falls to Nebraska’s five-member utility commission, an elected board with independent authority over TransCanada’s proposed route.

The commission has scheduled a public hearing in May, along with a week of testimony by pipeline supporters and opponents in August. Members face a deadline set by state law to take a vote by November.

“TENS OF THOUSANDS” OF JOBS

TransCanada has said on its website that the pipeline would create “tens of thousands” of jobs and tens of millions in tax dollars for the three states it would cross – Montana, South Dakota and Nebraska.

TransCanada declined to comment in response to Reuters inquiries seeking a more precise number and description of the jobs, including the proportion of them that are temporary – for construction – versus permanent.

Trump has been more specific, saying the project would create 28,000 U.S. jobs. But a 2014 State Department study predicted just 3,900 construction jobs and 35 permanent jobs.

Asked about the discrepancy, White House spokeswoman Kelly Love did not explain where Trump came up with his 28,000 figure, but pointed out that the State Department study also estimates that the pipeline would indirectly create thousands of additional jobs.

The study indicates those jobs would be temporary, including some 16,100 at firms with contracts for goods and services during construction, and another 26,000, depending on how workers from the original jobs spend their wages.

TransCanada estimates that state taxes on the pipeline and pumping stations would total $55.6 million across the three states during the first year.

The firm will pay property taxes on the pumping stations along the route, but not the land. It would pay a different – and lower – “personal property” tax on the pipeline itself, said Brian Jorde, a partner in the Omaha-based law firm Domina Law Group, which represents the opposition.

The personal property taxes, he said, would decline over a seven-year period and eventually disappear.

TRUMP: ‘I’ll CALL NEBRASKA’

The Nebraska utilities commission faces tremendous political pressure from well beyond the state it regulates.

“The commissioners know it is game time, and everybody is looking,” said Jane Kleeb, Nebraska’s Democratic party chair and head of the conservation group Bold Alliance, which is coordinating resistance from the landowners, Native American tribes and environmental groups.

The alliance plans to target the commissioners and their electoral districts with town halls, letter-writing campaigns, and billboards.

During the televised ceremony where Trump awarded the federal permit for the pipeline, he promised to weigh in on the Nebraska debate.

“Nebraska? I’ll call Nebraska,” he said after TransCanada Chief Executive Russell Girling said the company faced opposition there.

Love, the White House spokeswoman, said she did not know if Trump had called Nebraska officials.

The commission members – one Democrat and four Republicans – have ties to a wide range of conflicting interests in the debate, making it difficult to predict their decision.

According to state filings, one of the commissioners, Democrat Crystal Rhoades, is a member of the Sierra Club – an environmental group opposing the pipeline.

Another, Republican Rod Johnson, has a long history of campaign donations from oil and gas firms.

The others are Republicans with ties to the farming and ranching sectors – including one member that raises cattle in an area near where the pipeline would cross.

All five members declined requests for comment.

PREPPING THE WITNESSES

TransCanada has been trying since 2008 to build the 1,100-mile line – from Hardisty, Alberta to Steele City, Nebraska, where it would connect to a network feeding the Midwest and Gulf Coast refining regions. The firm had its federal permit application rejected in 2015 by the Obama administration.

Opponents want the pipeline, if not rejected outright, to be re-routed well away from Nebraska’s Sandhills region, named for its sandy soil, which overlies one of the largest freshwater aquifers in the United States.

The Ogallala aquifer supplies large-scale crop irrigation and cattle-watering operations.

“It all comes down to water,” said Terry Steskal, whose family farm lies in the pipeline’s path.

Steskal dug his boot into the ground on his property, kicking up sand to demonstrate his biggest concern about the pipeline. If the pipeline leaks, oil can easily seep through the region’s porous soil into the water, which lies near the surface.

TransCanada spokesman Terry Cunha said the company has a good environmental record with its existing Keystone pipeline network in Nebraska, which runs east of the proposed Keystone XL.

The company, however, has reported at least two big pipeline spills in other states since 2011, including some 400 barrels of oil spilled in South Dakota last year.

The Domina Law Group is helping the opposition by preparing the landowners, including the Tanderups and Steskals, for the August hearings, much as they would prepare witnesses for trial.

If the route is approved, Jorde said the firm plans to file legal challenges, potentially challenging TransCanada’s right to use eminent domain law to seize property.

Eminent domain allows for the government to expropriate private land in the public interest. But Jorde said he thinks TransCanada would struggle to meet that threshold in Nebraska.

“Some temporary jobs and some taxes is not enough to win the public interest argument,” he said.

(Additional reporting by Ethan Lou in Calgary; Editing by Richard Valdmanis and Brian Thevenot)

U.S. defense secretary says Syria dispersed warplanes, retains chemical weapons

Israel's President Reuven Rivlin (R) welcomes U.S. Defense Secretary James Mattis in Jerusalem April 21, 2017. REUTERS/Jonathan Ernst

By Idrees Ali

TEL AVIV (Reuters) – U.S. Defense Secretary Jim Mattis said on Friday that Syria had dispersed its warplanes in recent days and that it retained chemical weapons, an issue he said would have to be taken up diplomatically.

The United States launched dozens of missiles earlier this month against a Syrian air base in response to a chemical attack that killed 90 people, including 30 children. It says the Syrian government launched the attack from the Shayrat air base.

The Pentagon has said that the strike had damaged or destroyed about 20 percent of the Syrian military’s operational aircraft.

During a press conference alongside his Israeli counterpart, Mattis was asked whether the Syrian military had moved warplanes to a Russian base in Latakia.

“They have dispersed their aircraft, no doubt. They have dispersed their aircraft in recent days,” Mattis said.

Mattis also reiterated that the United States believed Syria had retained some chemical weapons.

“The bottom line is, I can say authoritatively they have retained some (chemical weapons). It’s a violation of the United Nations Security Council resolutions, and it’s going to have to be taken up diplomatically,” Mattis said.

Israel’s military said on Wednesday it believes Syrian President Bashar al-Assad’s forces still possess several tonnes of chemical weapons.

A senior Israeli military officer told Israeli reporters that “a few tonnes of chemical weapons” remained in the hands of Assad’s forces, a military official told Reuters.

In a 2013 agreement brokered by Russia and the United States, Syria agreed to destroy its chemical weapons.

The Organisation for the Prohibition of Chemical weapons, a global watchdog, said sarin or a similar banned toxin was used in the April 4 strike in Syria’s Idlib province.

Mattis later met Israeli Prime Minister Benjamin Netanyahu in Jerusalem. Before the start of their talks, Netanyahu said he was optimistic about relations between the two countries under the new U.S. administration.

The two countries are working to set a more positive tone after eight years of friction under President Donald Trump’s Democratic predecessor, Barack Obama.

(Reporting by Idrees Ali; Editing by Gareth Jones and Richard Lough)

Trump extends program allowing some veterans to use local doctors, hospitals

U.S. President Donald Trump smiles after signing S.544, the Veterans Choice Program Extension and Improvement Act, at the White House in Washington, U.S., April 19, 2017. REUTERS/Kevin Lamarque

By Lisa Lambert

WASHINGTON (Reuters) – President Donald Trump on Wednesday moved a step closer to fulfilling his campaign promise to reform the troubled Veterans Affairs department, but some veterans groups are concerned that the administration may be working toward privatizing their healthcare.

Trump signed a law extending the pilot “Veterans Choice” program, which allows some veterans to receive healthcare from local doctors and hospitals closer to their homes than the VA’s 150 hospitals and nearly 1,000 outpatient clinics. The law eases procedures for reimbursing private providers and creates a system for sharing medical records with them.

“This new law is a good start, but there is still much work to do,” Trump said at a signing ceremony attended by VA Secretary David Shulkin and Florida Governor Rick Scott.  “We will fight each and every day to deliver the long-awaited reforms our veterans deserve.”

Trump pledged to hold a news conference next week on “all of the tremendous things that are happening at the VA and what we’ve done in terms of progress and achievement.”

Reforming the agency, rocked by a waiting-time scandal in 2014, was one of Trump’s most-repeated campaign trail promises. He has frequently suggested having the government pay outside physicians to provide veteran healthcare.

During his confirmation hearings, Shulkin said he supported overhauling the agency but did not believe in privatizing it. Still, on Tuesday the VA announced it was seeking cutting-edge treatments from the healthcare industry for brain injuries, mental health problems and chronic pain.

Extension of the “Veterans Choice” program could worry Democrats and other critics that Trump and Shulkin are inching toward sending some of the $65.6 billion the department spends annually on medical care to corporations and private businesses.

Conservatives calling for privatization say the VA provides medical services to only about 45 percent of veterans, and they point to delays and inefficiencies dogging the current system.

Some veterans groups and Democrats have warned against moving funds away from healthcare providers with expertise in injuries and illnesses unique to serving in the armed forces.

In a March report, the Government Accountability Office said veterans in the Choice program still face long wait times, mostly because cases must be referred to private contractors for scheduling.

Last year a congressionally mandated panel of experts found the Choice program was inefficient, but recommended establishing a community-based healthcare system that would include private doctors.

(Reporting by Lisa Lambert; Editing by David Gregorio)