SUBSCRIBE TO OUR FREE NEWSLETTER
Daily news & progressive opinion—funded by the people, not the corporations—delivered straight to your inbox.
5
#000000
#FFFFFF
To donate by check, phone, or other method, see our More Ways to Give page.
Daily news & progressive opinion—funded by the people, not the corporations—delivered straight to your inbox.
Latin America took a back seat in U.S. foreign policy during the eight years of the Bush presidency, most likely due to the Iraqi distraction, when most of the administration's diplomatic capacity was expended on Baghdad, with little left over for the Americas. The region has to date remained largely unaddressed by the Obama White House, but there are several key policy areas which the U.S. president will be expected to comprehensively address in Port of Spain. Political orientation has altered, outside competition has grown more fierce, and attitudes towards the U.S. have shifted significantly since Washington last engaged to a serious extent with Latin America. Consequently, the scope - indeed, the need - for a new approach is pressing. In fact, many of the moves Obama ought to be considering are not costly in monetary terms, but could prove profitable in terms of diplomatic coinage. However, while the vacuum on Latin American issues which currently characterizes the Obama White House persists, it is unclear whether or not the U.S. president is prepared to come forth with big policy initiatives or has the capacity to grasp the importance of such measures to hemispheric relations.
Treading the Line between Listening and Lecturing
Much of the discussion in Washington in the weeks preceding the Summit has centered on the question of the role the U.S. president should play at the Port of Spain forum. Debates have largely been wasted by the vastly oversimplified question; should Obama go merely to listen to other countries' concerns, or should he arrive with a plan of action? Listening to the views of the rest of the hemisphere is a prerequisite for the kind of improved U.S.-Latin American relations that Obama has promised, and which was routinely ignored by his predecessors. On the other hand, a number of Latin American presidents have made it clear to him in no uncertain terms over the past two months what the region expects of him. Brazilian President, Luiz Inacio Lula da Silva, acted as Latin America's emissary when he visited Washington on March 14. Lula's message could not have been clearer. "I'm going to ask that the U.S. take a different view of Latin America," he said before meeting Obama. "We're a democratic, peaceful continent, and the U.S. has to look at the region in a productive, developmental way, and not just think about drug trafficking or organized crime."
The White House must now move to outline a plan of action based on the information it has accrued over the past three months in office. To date, Washington has failed to present a coherent strategy for its Latin America policy. This has widely been put down to the fact that the administration remains distracted by events elsewhere in the world and at home. However, this interpretation overlooks the relatively simple nature of the steps it would take for Obama to begin to formulate a consistent and effective policy for the hemisphere.
The administration's preoccupation with the welfare of domestic U.S. industries is certainly understandable, but the current state of the economy must not be used as an excuse for President Obama not to take action in the other crucial areas in which the U.S. shares interests with the rest of the western hemisphere. It seems inevitable that such economic factors will be at the top of the agenda in Port of Spain - and the countries of Latin America quite clearly have a vested interest in ensuring that the U.S. does not attempt to fix its economy in a fashion which may be detrimental to them - but the Obama administration has a whole set of important agenda items to address at the summit, and the approach it takes will dictate not only the direction of U.S.-Latin American relations, but will also have a significant bearing on other aspects of its foreign and domestic policy.
For example, action on Cuba will generate diplomatic repercussions worldwide; the way in which the U.S. addresses subjects which are urgent to Latin America will help dictate the future shape of its international trade; and the future stipulations of regional anti-drug policy will eventually have a direct bearing on hemispheric security, particularly along the U.S.' southern border. In short, arriving with a spelled-out and wide-ranging plan of action that is sympathetic to the grievances of Latin America's governments, may well hold untold benefits for Washington, and is the only way it can balance being considered sufficiently sensitive to its neighbors' most fundamental requirements.
The Cuban Question
President Obama will travel to Trinidad in the knowledge that the biggest diplomatic challenge he will face is most likely the question of U.S. policy towards Cuba. COHA, along with an ever-growing chorus of governments, media, Afro-American groups and church and business organizations, repeatedly have called for the Obama administration to sweep away the clutter and make a clean break with a shameful past by normalizing U.S. relations with Cuba. This would immeasurably improve the goodwill shown to the White House by the rest of the hemisphere and should be no more difficult to do than it was for the Bush administration to normalize ties with an essentially lawless society in the case of Libya. Praiseworthy steps already are being contemplated, like slackening the restrictions on travel and ability to send off remittances imposed on Cuban-Americans by President Bush, and Obama has promised to close the U.S. detention facility at Guantanamo within one year. The administration will attempt to use these moves as bargaining chips. However, the fact that the decades-old trade embargo on the island remains in place - which was so effectively denounced by Richard Lugar (R-In), the minority ranking member of the Senate Foreign Relations Committee - cannot be overlooked.
On his recent visit to Chile, Vice President Joe Biden restated the administration's muddled unwillingness to lift the U.S. embargo on Cuba. "We think that Cuban people should determine their own fate and they should be able to live in freedom and have some prospect of economic prosperity," said Biden, using rather contorted logic to suggest that Washington still, after 47 years, believes that regime change is a prerequisite for the embargo's lifting. The regrettable maintenance of the status quo on this front means that Obama cannot be expected to "bring Cuba in from the cold," as the Guardian recently suggested he would use the Summit to do.
Whether or not the promises Obama makes on Cuba at the summit will placate his barrage of right- and left-wing critics or can be expounded upon in a respectable manner is a matter for the future, but the problem will not go away, just as it has not disappeared over the decades. Venezuelan President Hugo Chavez recently called the U.S. embargo against Cuba "absurd and stupid," and has asserted that the issue "has to be discussed" in Port of Spain. The AP reported that the Venezuelan president went on to criticize Havana's exclusion from April's forum, saying, "Cuba is in Latin America ... With what right, for example, am I going to go to a summit where all of Latin America is there ... and Cuba isn't there? Why?" Chavez's ability to drum up sufficiently vociferous support for what the Economist has labeled "the ghost at the conference table" will likely dictate the intensity of the hostility Obama will have to face. In any case, the U.S. president certainly will be passing up the most cost effective method of healing the U.S.' image in Latin America. By doing so, he will lead his administration into an increasingly isolated position at a time when Costa Rica has recently repaired relations with Havana which were first broken off in 1961 and El Salvador has followed suit after the election of Mauricio Funes on March 15, which will make it the last Latin American nation to restore full relations with Cuba.
Taming Caracas
U.S. relations with Venezuela, which deteriorated drastically during the Bush presidency, remain strained. While President Chavez initially welcomed Obama's election, their subsequent exchanges have largely been tense and disagreeably unpleasant. Chavez said on March 18 of his government's preparations for April's summit, "Our artillery is being prepared. There's going to be good artillery." He went on to ask, "What will Mr. Obama come with? I don't know. We're going to see. We'll see what the pitcher throws."
Suspicion of Caracas remains unabated in the corridors of Capitol Hill. Chavez has hardly helped his cause lately by launching what it is hard not to see as a power grab since his impressive February 15 referendum victory, or at least an excess of activity that adds up to an antipathetic strategy that can only lose him more friends internationally and domestically. By seizing control of foreign-owned food manufacturers and a sizeable portion of Venezuela's aviation infrastructure, Chavez not only arms more of his enemies with bad as well as good arguments, but, even more importantly, fills his agenda with far too many items than he or anyone else can effectively address or properly administer. Nevertheless, it is imperative that Obama makes an effort to distance himself from the hostile rhetoric that continues to emanate from the Hill, and occasionally from within his administration.
Caracas seems almost certain to become a less important focus in U.S. foreign policy under an administration which is anticipated to be more attentive to the substantive issues Latin America faces. However, accepting the fundamental fact that Chavez is democratically elected, and taking a rational approach towards a creative engagement with Venezuela in the hope of diminishing its president's incentive to spout vitriol, will help pave the way for a calmer and more productive relationship between Washington and Latin America as a whole, both during and beyond the Summit. Recall that even under the Bush administration, the State Department had come up with a pro-dialogue tactic, which Chavez either cagily or foolishly rejected. But he now seems to be looking around for an honest broker like Lula to intercede with the White House, and one should also recall that constructive engagement was the habitual advice that Fidel had imparted to his protege. Whatever the source or the message, the surly, dismissive content of the Bush White House when it came to Venezuela had nothing to persuade Chavez, and hopefully will be replaced with wiser words and policy formulations under its new tenant.
Drugs and Violence: Looking Beyond Mexico
One aspect of the U.S.-Latin American relationship which has begun to be addressed by the Obama administration is the Mexican security situation. Secretary of State Hillary Clinton visited Mexico on March 25 and 26, and the president himself will travel to Trinidad for the Summit via Mexico City on April 16 and 17. These trips, coupled with Mexican President Felipe Calderon's January visit to Washington, demonstrate the high value that the U.S. is placing in its relations with its southern neighbor.
During her visit, Secretary Clinton made several promising remarks that admitted, "what we have been doing has not worked and it is unfair for our incapacity ... to be creating a situation where people are holding the Mexican government and people responsible." Moreover, she went on to accept U.S. culpability in exacerbating the violence, taking responsibility not only in failing to halt it, but acknowledging that, "Our insatiable demand for illegal drugs fuels the drug trade. Our inability to prevent weapons from being illegally smuggled across the border to arm these criminals causes the deaths of police officers, soldiers and civilians."
The true test for Washington will be whether or not it can find the answers to the questions Clinton has posed. How will the administration prevent the smuggling of weapons that at times are far more lethal than those the Mexican security forces possess? How will it quell the insatiable demand for drugs in the U.S.? Identifying the problems is a welcome and praiseworthy start, but until Washington stops merely analyzing, and begins implementing rational and effective policies to address those problems, any progress towards finding solutions will undoubtedly be highly limited.
In order to make a mark, Obama is going to have to adopt some imaginative, and inevitably controversial, policies. By far the best strategy - and perhaps the only effective way to prevent weapons from being smuggled into the hands of Mexican cartels - is to place greater restrictions on the sale of arms in the U.S. The demand for drugs in this country is only likely to be suppressed with a massive redirection of funds from crop eradication programs in the Andean nations towards domestic schemes, and it will likely take the adoption of a more serious approach towards the question of legalization - recently described by the Economist as the "least bad option" for governments to take - to make a significant dent in U.S. consumption.
Moreover, the common problems which U.S. and Mexican authorities face are symptomatic of a malaise which also affects much of the rest of Latin America. While Mexico, given its proximity, is naturally Washington's most pressing concern when it comes to drugs, violence and crime, the Obama administration cannot afford to ignore the rest of the chain of drug trafficking and associated violence, which stretches through Central America to the Andes and beyond, reaching as far as West Africa and then in the smuggling routes going into Europe.
The administration now has to reiterate that it comprehends the drug-related problems plaguing Latin America by publicly acknowledging the fact that President Calderon's crackdown in Mexico is pushing cartels, and the associated violence, not only into U.S. border cities, but also across Mexico's border with Guatemala and into Honduras. This forces all concerned to devote additional scarce resources to fight this expanded conflict which they are bound to lose. Achieving a reduction in violence and cartel influence in these embattled countries should be high on Washington's list of priorities: it must be concerned about the ramifications of Mexico's situation, but if it is serious about helping, it must show a willingness to embrace multilateral solutions, and throw a lot more funds into the kitty.
It is a brave American president who touches the issues of gun control and drug legalization, and Obama does not appear willing to break the mould of timidity regarding this subject. Speaking at a March 26 press conference, he made light of the legalization question, saying, "I don't think that is a good strategy to grow our economy," to "laughter and applause," reported Politico. Obama will inevitably fail to broach such an unmentionable subject in Trinidad, despite its patent relevance. Action on stemming the cartels' activity in Central America is somewhat more likely - the upcoming forum certainly provides Obama with a perfect opportunity to talk to the region's presidents, and the election of a new administration in El Salvador may well spark a renewed dialogue with the area - but the results of any such progress will inevitably be limited due to a relative lack of executive bravery and a disinclination to throw more money at the problem.
Trade: Avoiding Another Mar del Plata
The last Summit of the Americas, at Mar del Plata, Argentina, in November 2005, was the scene of violent protests against President Bush, and culminated in his failure to gain hemispheric support for the U.S.' proposed region-wide Free Trade Area of the Americas (FTAA). The FTAA has been a source of much contention throughout the history of the Summit, with negotiations beginning in 1994 in Miami, and violence marring Quebec City's turn at hosting in 2001. Indeed, the recurring presence of Bill Clinton's FTA at these meetings has led the Economist to argue that regional power Brazil regards the Summits as being "indissolubly linked to the doomed FTAA."
The question of trade is also set to feature prominently in the proceedings in Port of Spain. Obama is being pressed by many policymakers on Capitol Hill as well as in Colombia and Panama to achieve progress on the U.S.' pending FTAs with those two countries at the upcoming summit. The president must take on board two considerations while deciding on his course of action on this front. Firstly, he should realize that there are good reasons why the Colombian agreement is being held up in Congress, and that similar reasons could justifiably preclude a deal with Panama. Secondly, he needs to, unlike his predecessor, acknowledge that the notion of free trade with the U.S. on Washington's terms is not an attractive proposition for a good portion of the hemisphere's governments.
Colombia's record on human rights, along with the endemic corruption which is a disturbing feature of President Uribe's government, has stalled the progress of the U.S.-Colombian FTA in Congress since 2007. Despite Bogota's recent attempts to revive the process by dispatching its ministers to Washington in February, as part of a huge PR blitz put on by Uribe, events in Colombia continue to provide Congress with good reasons not to proceed in a positive direction. The recent exposure by the Colombia's illustrious news magazine Semana of the Colombian security service DAS's wiretapping practices is just the latest evidence of unremitting government corruption and human rights abuses that have become synonymous with the Uribe administration. Similarly, COHA recently warned the Obama administration against engaging with another "toxic partner," in the form of Panama. The Central American country's murky financial establishments, and the whirlwind of obvious lies and corrupt practices surrounding its upcoming presidential election, should make Obama think twice about promising the FTA enactment which Panama craves but unfortunately, ill deserves.
The Obama administration additionally should realize that the enthusiasm shown by these two countries to sign up to trade deals with the U.S. is not a universally held desire in Latin America. Since the failure of the FTAA under Bush, the region has developed its own vision of regional trade cooperation. Bodies like Chavez's Bolivarian Alternative for the Americas (ALBA) have emerged, alongside the Brazilian-led UNASUR, and all have in common a focus on supplementing trade with other forms of cooperation, be it political in the case of UNASUR, or social among the ALBA countries. Obama must seek to detach the Summit of the Americas - which clearly has the potential to be an invaluable forum - from the ball and chain of the failed FTAA. By reassuring Latin America that the Summit is not merely a vehicle for the U.S. to realize unadulterated free trade, he may succeed in achieving more in Trinidad than his predecessors have managed at previous hemispheric meetings.
Bringing Latin America to the White House: The Case for a Special Envoy
The agenda for U.S. action in Latin America that the U.S. delegation will be taking to Mexico and then to Trinidad, could ultimately be realized, given a sensitive and highly responsive approach from Washington. There is, however, a question mark hovering over the administration's ability to do this while its current staffing and planning configuration continues unmodified. Former President Bill Clinton revived the role of White House Special Envoy to Latin America when he appointed Mack McClarty to the post in 1994, and Otto Reich subsequently served a grossly undistinguished tenure in a similar role under George Bush. Previously, Reich narrowly escaped being prosecuted in the Iran-Contra affair along with former Assistant Secretary of State for Inter-American affairs Elliot Abrams. However, the then-president abolished the special envoy position in 2004, leaving the Assistant Secretary of State for Western Hemisphere Affairs in the State Department as the highest ranking administration representative charged with dealing with the region on a daily basis. This role has been filled since 2005 by Tom Shannon. Shannon remains in his post under Obama at least through Trinidad, and while he is a well-respected and a seemingly moderate figure, this still means that there is no Obama appointee prominently positioned in either the White House or State Department tasked with specifically addressing U.S.-Latin American relations.
Jeffrey Davidow, a career Foreign Service officer who served as Assistant Secretary of State for the Western Hemisphere during the Clinton administration, and has been the U.S. ambassador to both Mexico and Venezuela, was recalled by the Obama White House to act as the president's special advisor at the Summit. However, a permanent Obama-appointed special envoy is a necessity, and would go a long way towards rectifying what could be described as underrepresentation when it comes to having a major spear carrier to do the new administration's work. A bona fide Latin Americanist would be a welcome addition to his administration. After all, Washington must still come up with a specific methodology to implement any measures or program of action it announces at the summit. At the very minimum, it needs to establish some kind of consistent means of engaging with regional leaders beyond episodic gatherings at a conference hall. The uncertainty over Latin American policy that has characterized the first three months of Obama's presidency, and the schizophrenic nature of U.S. relations with the left-leaning leaders of Venezuela and Bolivia, as well as some of the equally populist members of ALBA, is not something that many of those whose interest is centered in the region wish to see continue. Establishing an influential, and consistent and focused link between Washington and the region is an essential way of stabilizing relations, even if difficult ones.
An Opportunity Not to Be Missed
This coming weekend's Summit of the Americas has long been anticipated as the meeting at which the Obama administration would reveal its grand plan for U..S.-Latin American relations. Indeed, the president must clarify his position on at least some of the range of policy issues across the region, if he is to take advantage of the optimism and good will which has to date characterized most of the assembled governments' positive attitudes towards his election.
Ending the uncertainty surrounding the administration's policy thrust in Latin America should be seen as a priority. The White House has made it clear that Tom Shannon is very much an interim member of the administration, but has shown no signs of having considered his replacement. Announcing the appointment of a successor - ideally someone with a strong background in Latin American relations and not some warmed-over Clintonite who gave us NAFTA - to a post in the administration, as well as outlining a strategy which addresses some of the key policy areas set out above, would send the strongest possible positive message to the rest of the hemisphere that the U.S. is back, but this time is ready and willing to establish mutually cordial and gracious relations, and is ready to become literate in such issues as poverty abatement and the promotion of social justice. After all, those values that the U.S. shares or should be sharing with Latin America are either too pressing, or too dangerous, to be neglected.
However, even if Obama does defy expectations by announcing the appointment of an envoy who is bold and dashing, and not some centrist wannabe, the shape his administration's policy has begun to take, suggests that the region's anticipation may remain largely unsatisfied by this week's Summit. Latin America has never been more looking to the left than it is today. But the limited engagement with which the president has taken on the all-important question of Cuba will delight few, though it may placate those who still believe that the voiding of the extra layer of restrictions that President Bush laid on Cuba earlier in the decade was sufficient to masquerade as a new and enlightened Cuba policy. When it comes to Havana, the U.S. should normalize relations across the board, and then negotiate whether these are to be warm or chilly ties. Regarding Chavez, the Venezuelan strongman, he almost certainly holds less sway today than he did in the earlier part of the decade. Nevertheless, he still is vital and has some good ideas. What he now must do is reflect more and speak less. But he has much to contribute to the hemisphere.
Any movement on the 'drug war' will have to see more aid directed at Central America in addition to the current focus on Mexico. In short, the administration's approach will hopefully assuage some of Latin America's immediate concerns, but is unlikely to solve anything like its litany of problems. These signs suggest that some luster might come off the significance of Obama's emergence in Latin America from the region's unique perspective. The president is now expected to trade in the concept of 'change' for the specific policies on which he will be judged, such as immigration, drugs, trade and protectionism, national security, Cuba, Venezuela, economic and pluralism in Latin America. Of course, Obama's record on the ground will ultimately be the determinant of his status, defined by the Economist, of being "as widely admired in Latin America as Mr Bush was disliked."
This analysis was prepared by COHA Research Associate Guy Hursthouse
Founded in 1975, the Council on Hemispheric Affairs (COHA), a nonprofit, tax-exempt independent research and information organization, was established to promote the common interests of the hemisphere, raise the visibility of regional affairs and increase the importance of the inter-American relationship, as well as encourage the formulation of rational and constructive U.S. policies towards Latin America.
"Hiring was ice cold in February," said one economist.
New data from the US Bureau of Labor Statistics released on Tuesday continued to show weakness in the American jobs market.
The latest Job Openings and Labor Turnover Survey (JOLTS) shows that the number of new hires in February decreased to 4.8 million, which was roughly 400,000 fewer hires than were recorded in February 2025.
The report also shows that the US hiring rate in February fell to just 3.1%, which is the lowest rate since April 2020, when the economy was shut down due to the global Covid-19 pandemic.
The good news in the report is that the number of quits and layoffs remained relatively steady, meaning that people who already have jobs are retaining them at a healthy clip.
But Heather Long, chief economist at Navy Federal Credit Union, noted that these bad hiring numbers came before President Donald Trump launched an illegal war with Iran, which has since destabilized global energy markets and raised prices for oil, gasoline, and diesel fuel.
"This is a hiring recession," Long wrote in a social media post. "And Americans are feeling it. There were notable hiring pullbacks in February in hospitality and construction. Bottom line: The job market was already frozen before the war in Iran began. It's worrying that a 'no hire, no fire' situation could turn into a 'no hire, start to fire' job market quickly if there isn't a resolution soon."
Long's analysis was echoed by Laura Ullrich, director of economic research at hiring site Indeed, who wrote in a research note flagged by Axios that hiring in the US "was stuck in neutral going into this [Iran] conflict," and "getting it into gear just got harder" thanks to the war.
Guy Berger, director of economic research at the Burning Glass Institute, noted that hiring rates in the US hit 3.1% or lower the last two times the country was in a severe recession.
"3.1% is not only comparable to the Covid low point—it's also comparable to late 2009 and early 2010, when the unemployment rate was around 10%," Berger explained. "Hiring was ice cold in February."
Scott Lincicome, a senior fellow at the libertarian Cato Institute who has been a harsh critic of Trump's tariffs, found that the February JOLTS report wiped out an unexpected January increase in manufacturing job openings that the president's allies attributed to his trade policies.
"Alas, the perils of cherry-picking," Lincicome commented.
The new data on hiring in the US job market comes weeks after a BLS report estimated that the economy lost 92,000 jobs in February. On the whole, the American economy has posted a net loss of jobs since Trump announced his “liberation day” global tariffs in April 2025.
“This isn’t about advancing the interests of retirement savers, it is about opening a new profit center for crypto and Wall Street," said one critic.
US President Donald Trump's Labor Department on Monday unveiled a proposal that would welcome private equity and cryptocurrency investments into Americans' 401(k) plans, the culmination of an aggressive Wall Street lobbying push that could leave the retirement savings of millions vulnerable to the wild swings of so-called "alternative assets."
The proposed rule, now subject to a public comment period, was issued at the direction of a Trump executive order from last year that was characterized at the time as "the holy grail for private equity."
In addition to giving employers a green light to include private equity and crypto investments in 401(k) plans offered to workers, the new rule would establish a "safe harbor" allowing retirement account administrators to avoid legal action from employees who believe their funds were steered into excessively risky products.
"The legal immunity created by this safe harbor will incentivize financial advisers to pitch these toxic products, which will become ticking time bombs in tens of millions of retirement accounts, which will no doubt result in significant losses," warned Benjamin Schiffrin, director of securities policy at the advocacy group Better Markets. "There are good reasons why 401(k) plans have been considered closed to private markets and cryptocurrencies, and those reasons have not changed. The only thing that has changed is the administration’s support for these industries and regulators’ willingness to do their bidding."
"This is no reason to endanger the retirement savings of millions of Americans," Schiffrin added.
Oscar Valdés Viera, senior policy analyst at Americans for Financial Reform, similarly warned that "opening 401(k)s to these products risks turning workers’ retirement savings into a Ponzi-like scheme that throws a lifeline to an industry scrambling for fresh cash."
"This isn’t about advancing the interests of retirement savers, it is about opening a new profit center for crypto and Wall Street," said Viera. "Retirement savers should not be bailing out these high-risk industries and subsidizing the Wall Street and crypto billionaire class."
"Private equity firms should not get a free pass to loot workers’ 401(k) retirement savings."
Americans currently hold over $10 trillion combined in 401(k) plans, a huge trove of wealth that the private equity industry has been working for years to access. The Labor Department indicated that its proposed rule would apply to over 720,000 retirement plans covering roughly 118 million workers.
The American Prospect reported Tuesday that the managers of private equity firms are "already pressuring companies, third-party administrators, and the consultants who advise them to list their offerings" among workers' retirement plan options.
"One staffer at an institutional investor who is not authorized to speak to the media told the Prospect about their primary worry: that private equity will stick their most overvalued companies into continuation funds exclusively for 401(k) plan holders, or 'retail investors,' as they are known," the outlet continued. "Private credit firms are retailoring their funds for 401(k) plans as well, and some of the biggest have already struck deals with asset managers like Voya and Vanguard. 'I’d be shocked if the industry doesn’t attempt to dump their garbage onto retail,' the staffer said."
One recent analysis by the Private Equity Stakeholder Project (PESP) found that private equity funds for retail investors "dramatically underperformed publicly listed stock indexes" in 2025 while charging much higher fees.
Jim Baker, PESP's executive director, said Monday that "private equity firms should not get a free pass to loot workers’ 401(k) retirement savings."
“The bar for including private equity in 401(k)s should be extremely high,” said Baker. “Private equity funds have lagged public markets while charging much higher fees, and public pension funds are pulling back from the asset class. Instead, this rule risks shifting more financial risk onto workers who rely on their retirement savings for long-term security.”
Sen. Elizabeth Warren (D-Mass.) also ripped the Labor Department rule, saying in a statement that "Americans facing an uncertain future in Trump’s economy will now have more reasons to question the security of their retirement savings—all so that Trump’s Wall Street buddies have another pile of cash to play with."
"Anyone who cares about the financial security of working people," said Warren, "should oppose this proposed rule."
Young people are more than twice as likely to attempt suicide if they have been subject to conversion therapy, which LGBTQ+ rights advocates say is "proven to cause lasting psychological harm."
The US Supreme Court on Tuesday struck down Colorado’s ban on “conversion therapy,” drawing warnings from LGBTQ+ groups that the ruling could expose children in dozens of states to the harmful practice.
Colorado's law forbade licensed physicians and mental healthcare providers from attempting to "convert" or change a minor's sexuality, a practice that the American Psychological Association has found to be both ineffective and dangerous, raising rates of depression, anxiety, and suicide in LGBTQ+ youth.
The law defined "conversion therapy" as any treatment that “attempts or purports to change an individual’s sexual orientation or gender identity, including efforts to change behaviors or gender expressions or to eliminate or reduce sexual or romantic attraction or feelings toward individuals of the same sex.”
It allowed exemptions for pastors and religious organizations. It also allowed health professionals to engage in wide-ranging discussions with children about their sexual and gender identities, so long as they did not try to change the child's orientation.
Nevertheless, on Tuesday, the high court sided 8-1 with Kaley Chiles, a Christian counselor who said she wished to offer talk therapy to children who want to reduce same-sex attraction and argued that the ban on this practice was in violation of her First Amendment rights.
Chiles was backed by the Trump administration, as well as the far-right Alliance Defending Freedom, a Christian nationalist legal group with a long history of seeking to outlaw same-sex conduct.
Most famously, the group argued in support of state laws criminalizing homosexuality in the 2003 Lawrence v. Texas case, and it has since gone on to back many other cases attacking birth control access, same-sex marriage, and transgender equality.
In the majority opinion, the conservative Justice Neil Gorsuch wrote that Colorado's law “censors speech based on viewpoint" and therefore must be subject to strict scrutiny—the highest form of judicial review, which the court determined it did not pass.
The lone dissenting justice, Ketanji Brown Jackson, argued that Chiles' treatment was not mere speech, but that it was acting in her capacity "as a licensed healthcare professional," which formed the crux of Colorado's defense of the ban.
She argued that the ruling "opens a dangerous can of worms" and "threatens to impair states’ ability to regulate the provision of medical care in any respect."
"Because the majority plays with fire in this case, I fear that the people of this country will get burned," Jackson said.
Two liberals, Justices Elena Kagan and Sonia Sotomayor, joined the conservatives in striking the law down. However, they argued in a concurring opinion that a full ban on therapy aimed at changing minors' sexuality might be more lawful than the one Colorado passed, which included carveouts for specific circumstances.
Kagan also argued that allowing Colorado to outlaw conversion therapy could backfire and give red states the legal framework to also ban counselors from providing affirmative care to LGBTQ+ minors.
LGBTQ+ rights organizations have roundly condemned the court's decision, which is expected to weaken bans on conversion therapy in the 23 states and the District of Columbia that currently have them.
"Today’s reckless decision means more American kids will suffer," said Kelley Robinson, the president of the Human Rights Campaign. "The Court has weaponized free speech in order to prioritize anti-LGBTQ+ bias over the safety, health, and well-being of children."
A 2024 mental health survey by the Trevor Project, an LGBTQ+ advocacy group, found that 13% of LGBTQ+ young people have been either threatened with or subject to conversion therapy—including about 1 in 6 transgender or nonbinary youth.
Previously, the group published peer-reviewed research in the American Journal of Public Health, showing that young people subject to conversion therapy were more than twice as likely to attempt suicide as their peers.
"These efforts, no matter what proponents call them, no matter what any court says, are still proven to cause lasting psychological harm," said Trevor Project CEO Jaymes Black. "That’s why protections have been enacted in more than 20 states, and are supported by every major medical and mental health association in the country."
Carl Charles, a senior attorney at Lambda Legal who joined more than a dozen survivors of the practice in a friend of the court brief in support of Colorado's law, said, "I know firsthand the long-lasting harms of conversion therapy, having been subjected to it when I was 15 years old."
"This practice did not change my sexual orientation or gender identity," said Charles, a transgender man. "Instead, it destroyed important relationships and created shame and fear that took time and effort to undo. For many survivors, it is a reverberating life-long harm."
"LGBTQ+ youth do not need to be changed," Charles said. "Rather, like all youth, they need to be supported and celebrated for the unique and important people they are becoming."
Colorado's Democratic Gov. Jared Polis has said he will seek to pass new legislation that complies with the Supreme Court's ruling.
"Conversion therapy doesn’t work, can seriously harm youth, and Coloradans should beware before turning over their hard-earned money to a scam," Polis said. "I am evaluating the US Supreme Court ruling and working to figure out how to better protect LGBTQ youth and free speech in Colorado."
In other states whose bans could be undermined by the ruling, efforts have already begun to ensure that providers who cause harm to children still face accountability.
In California, which has a similar ban on conversion therapy to Colorado’s, state Sen. Scott Weiner (D-11) introduced a bill proposing a longer statute of limitations and making it easier for LGBTQ+ individuals to bring malpractice claims against medical professionals who subject them to conversion therapy.
Weiner noted that the Supreme Court's ruling "explicitly states that malpractice claims for conversion therapy are different than bans," since they require a plaintiff to demonstrate injury caused by their treatment.
"You can’t 'convert' someone who’s LGBTQ—full stop—and people who think you can are peddling quackery," Weiner said. "California will always have the community’s back."
The 988 Suicide & Crisis Lifeline can be reached by calling or texting 988, or through chat at 988lifeline.org. The Trevor Project, which serves LGBTQ+ youth, can be reached at 1-866-488-7386, by texting "START" to 678-678, or through chat at TheTrevorProject.org. Both offer 24/7, free, and confidential support.