
Plus, Mona Lisa makes moves.
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Tracy Mumford
This podcast is supported by Charles Schwab. Decisions made in Washington can affect your portfolio every day, but what policy changes should investors be watching? Washington Wise is an original podcast from Charles Schwab that unpacks the stories making news in Washington right now and how they may affect your finances and portfolio. Listen@schwab.com WashingtonWise from the New York Times, it's the headlines. I'm Tracy Mumford. Today's Wednesday, January 29th. Here's what we're covering. Employees of the United States government got an email yesterday from the Office of Personnel Management. Subject line fork in the road. Inside was an stay at your job as part of a, quote, reformed federal workforce or take a buyout and leave. The offer covers roughly 2 million federal workers, and it's part of an effort to drastically reduce the size of the government and to push out people who don't support President Trump's agenda. The email warned that people who do choose to stay will face enhanced standards of conduct to ensure that workers are, quote, reliable, loyal, trustworthy. For people who want the buyout, they were asked to simply write back the word resign and hit send. Notably, a very similar email with the same exact fork in the road subject line went out to the employees of Twitter when Elon Musk, who Trump has put in charge of cutting government spending, took over that company. Not all federal employees are eligible for the deal. The Office of Personnel Management said members of the military, postal service workers, immigration officials and others would be exempt. But the move could gut the staff responsible for a lot of services Americans rely on. People who could turn in their resignations include meteorologists at the National Weather Service, food safety inspectors, nuclear scientists. Regular activities like filing a tax return, renewing a passport, going to a national park, or accessing food stamps could be disrupted. The drastic buyout offer, which the Trump administration may not have the authority to follow through on, is just one of dozens of policy changes and executive orders that have been rolled out over the last 10 days. The onslaught is intentional. During Trump's first term, his team boasted about the flood the zone tactic. This time around, Trump's policy advisor, Stephen Miller, has been pushing it aggressively. The theory goes that rolling out multiple changes almost simultaneously overwhelms any opposition and makes it harder to push back. The American people voted for dramatic change implemented by Donald Trump, so it is essential for him to get control of government. On Tuesday, Miller went on CNN to defend one of the president's most dramatic directives so far, his attempt to freeze trillions of dollars of federal funding. Either Donald Trump gets political control over this government and ends the waste, abuse and fraud on the American people, or we let bureaucrats autopilot federal spending. The freeze created a surge of confusion and panic across the country before a federal judge temporarily blocked it. Schools, hospitals, nonprofits, research companies and many other organizations scrambled to figure out if they'd have to shut down their services. Some did. A health agency in Arizona stopped distributing Narcan, and a Head Start program for 600 kids in Michigan canceled preschool for today after it couldn't access funds online. For now, the pause is on hold after an activist group sued the Trump administration over it, calling it unconstitutional. The judge in the case said she would issue a more permanent decision next week. For more about the freeze and whether it's likely to survive in court, listen to today's episode of the Daily this morning on Capitol Hill, one of President Trump's most polarizing cabinet picks, Robert F. Kennedy Jr. Will face his first confirmation hearing where senators will consider whether he should lead the Department of Health and Human Services.
Cheryl Gay Stolberg
The philosophy that he brings to this position could have far reaching ramifications for the kinds of drugs that Americans have access to, the kinds of vaccines that we give our children, the ingredients that we put in foods, not to mention people's health insurance and overall medical well being.
Tracy Mumford
My colleague Cheryl Gay Stolberg covers health policy. She says Kennedy rose to prominence pushing unorthodox views that medical experts say are dangerous. He's railed against vaccines, promised to take fluoride out of drinking water and encouraged people to drink raw milk, she says, while he's recently shifted his emphasis to less controversial issues like cutting back on how much ultra processed foods Americans eat or fighting chronic disease. It's those earlier views that will likely be at the center of this week's hearings.
Cheryl Gay Stolberg
Kennedy is gonna face a lot of tough questions, especially about his views on vaccination, which really alarm public health experts. He spent years sowing doubts about vaccines. He's participated in lawsuits against vaccine makers and public health. People regard vaccination as truly one of the great triumphs of their fields. The fact that we have eradicated smallpox and nearly eliminated polio and greatly reduced other childhood diseases that can be prevented with vaccines. They're worried that this progress will be endangered if Kennedy becomes health secretary.
Tracy Mumford
It's not clear yet whether Kennedy will get the votes he needs to be confirmed. He can only afford to lose the support of three Republicans, and so far several GOP senators have not said if they'll back him. That includes Mitch McConnell, who survived polio as a child. New data released today shows that American students reading scores have reached a record low. One third of eighth graders have below basic reading skills, according to the National Assessment of Educational Progress. That means when they read a passage, they can't identify what the main idea is. For fourth graders, the results are even 40% have below basic reading skills. The poor results cut across demographics like race and class and are a disappointment for educators who had been hoping for a rebound from widespread pandemic learning loss. Experts have no clear explanation for why the scores are falling. Some point to a rise in screen time. Kids are watching videos more and reading less, which means they're getting less practice. It could also be affecting their attention spans and their ability to focus. Other experts point to how much school kids are missing. The percentage of American students who are chronically absent is still far higher than it was before the pandemic. And finally, after 500 years, Mona Lisa is getting her own room. French President Emmanuel Macron announced that the Louvre Museum in Paris, which houses da Vinci's masterpiece, is expanding, and the plans include a special exhibition space just for the painting. The goal is to try and make room for more visitors. 9 million people a year come through the museum. An estimated 80% of them are there to see Mona Lisa because of the crowds. That means some people who go to see her famous smile just see, like, the top of her head or a little slice of her cheek in between other tourists phones. After the announcement, one French art expert pointed out that the museum could also do more to showcase its other masterpieces beyond Mona Lisa. The Louvre has half a million pieces in its collection and 30,000 on display. Those are the headlines. I'm Tracy Mumford. We'll be back tomorrow.
Podcast Title: The Headlines
Host: Tracy Mumford
Episode Title: Millions of Federal Workers Offered Payouts, and Kennedy’s Senate Test
Release Date: January 29, 2025
In the latest episode of The Headlines, Tracy Mumford delves into a significant development affecting approximately two million federal employees. The Office of Personnel Management (OPM) recently dispatched an email to government workers with the subject line "Fork in the Road," presenting them with a pivotal choice: remain in their current positions as part of a "reformed federal workforce" or accept a buyout and resign.
The proposed buyout aims to substantially reduce the federal workforce, aligning with the Trump administration's objective to streamline government operations and purge personnel deemed unsupportive of President Trump's agenda. Notably, the email specified that employees opting to stay would be subjected to "enhanced standards of conduct" to ensure their reliability, loyalty, and trustworthiness.
For those inclined to take the buyout, the process was straightforward—residents simply needed to reply with the word "resign" and send the email. This tactic mirrors a similar approach Elon Musk employed when taking over Twitter, where federal employees received an identical "fork in the road" proposition.
Not all federal employees are eligible for this buyout. The OPM clarified that military personnel, postal service workers, immigration officials, and other critical roles remain exempt. However, the broad scope of the offer threatens to decimate essential services that Americans depend on daily. Positions at risk include meteorologists at the National Weather Service, food safety inspectors, and nuclear scientists, among others. The potential fallout could disrupt routine activities such as tax filings, passport renewals, national park access, and food stamp distribution.
Tracy Mumford emphasizes the uncertainty surrounding the administration's authority to implement such a sweeping reduction, describing it as part of a deliberate "onslaught" of policy changes and executive orders over the past ten days. This approach, termed the "flood the zone" tactic, is reportedly being aggressively advocated by Trump’s policy advisor, Stephen Miller. The strategy aims to overwhelm opposition by introducing multiple changes simultaneously, making resistance more challenging.
“The theory goes that rolling out multiple changes almost simultaneously overwhelms any opposition and makes it harder to push back,” Mumford explains.
A significant portion of the episode centers on President Trump's attempt to freeze trillions in federal funding—a directive that has sparked widespread confusion and panic across various sectors. Stephen Miller defended this move during an appearance on CNN, stating:
“Either Donald Trump gets political control over this government and ends the waste, abuse and fraud on the American people, or we let bureaucrats autopilot federal spending.” [02:30]
The immediate impact of this freeze was palpable. Institutions across the nation, including schools, hospitals, nonprofits, and research organizations, were forced to halt or adjust their operations abruptly. For instance, an Arizona health agency ceased distributing Narcan, and a Head Start program in Michigan canceled preschool for the day due to an inability to access funds online.
However, legal challenges quickly followed. An activist group sued the Trump administration, deeming the freeze unconstitutional. A federal judge responded by temporarily blocking the directive, halting its implementation pending a more permanent ruling expected the following week.
“The freeze created a surge of confusion and panic across the country before a federal judge temporarily blocked it,” Mumford notes, highlighting the broader implications for federal operations.
Another critical topic discussed is the impending confirmation hearing of Robert F. Kennedy Jr. for the role of Secretary of Health and Human Services. Cheryl Gay Stolberg, a colleague specializing in health policy, provides in-depth analysis of the potential ramifications of Kennedy's appointment.
Kennedy has gained notoriety for his unconventional and widely criticized views on medical issues. He has publicly questioned the efficacy and safety of vaccines, advocated for the removal of fluoride from drinking water, and promoted the consumption of raw milk. While he has recently shifted his focus toward less contentious matters—such as reducing ultra-processed food intake and combating chronic diseases—his earlier stances remain a significant point of contention.
“Kennedy is gonna face a lot of tough questions, especially about his views on vaccination, which really alarm public health experts,” Stolberg warns. Her concerns extend to the potential impact of his leadership on public health initiatives:
“The fact that we have eradicated smallpox and nearly eliminated polio and greatly reduced other childhood diseases that can be prevented with vaccines. They're worried that this progress will be endangered if Kennedy becomes health secretary.” [04:18]
Despite his qualifications, Kennedy's confirmation remains uncertain. He requires the support of at least ten senators, potentially needing to secure backing from members of his own party. Notably, Republican Senate Majority Leader Mitch McConnell, a polio survivor himself, has yet to declare his support, adding to the uncertainty surrounding Kennedy's confirmation.
The episode also addresses the alarming decline in reading proficiency among American students. Recent data from the National Assessment of Educational Progress reveals that reading scores have plummeted to record lows, with one-third of eighth graders and 40% of fourth graders performing below basic levels.
Experts remain divided on the underlying reasons for this decline. Several factors are proposed:
Increased Screen Time: A shift towards digital consumption means children are reading less, resulting in reduced practice and diminished comprehension skills. This trend may also negatively affect attention spans and the ability to focus.
Chronic Absenteeism: The percentage of students who are chronically absent remains significantly higher than pre-pandemic levels, disrupting consistent learning and academic progress.
“Some point to a rise in screen time. Kids are watching videos more and reading less, which means they're getting less practice,” Mumford explains. “It could also be affecting their attention spans and their ability to focus.” [05:15]
Educators express particular disappointment, as the expectation was for academic performance to rebound following the extensive learning losses experienced during the pandemic.
In a lighter note, the podcast concludes with a cultural update on the Louvre Museum in Paris. French President Emmanuel Macron announced an expansion of the museum, which will include a dedicated exhibition space for Leonardo da Vinci's Mona Lisa. This move aims to accommodate the approximately nine million annual visitors who flock to view the painting, 80% of whom visit specifically for this masterpiece.
The primary goal is to alleviate overcrowding, allowing more visitors to appreciate the Mona Lisa without obstructing views. However, some French art experts have criticized the initiative, suggesting that the Louvre should also focus on showcasing its vast collection more effectively. With half a million pieces in its collection and only 30,000 on display, there is ample opportunity to highlight other significant artworks beyond the Mona Lisa.
“After the announcement, one French art expert pointed out that the museum could also do more to showcase its other masterpieces beyond Mona Lisa,” Mumford reports.
Conclusion
This episode of The Headlines provides a comprehensive overview of pressing issues ranging from federal workforce restructuring and controversial executive actions to educational challenges and cultural developments. Through insightful analysis and expert commentary, host Tracy Mumford offers listeners a nuanced understanding of the events shaping the current socio-political landscape.