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Stock shorters have made millions betting against Trump Media: ‘A lot of his businesses go belly up'

Friday April 26th, 2024 10:45:17 PM Bernard Condon | Associated Press

Rooting for Donald Trump to fail has rarely been this profitable.

Just ask a hardy band of mostly amateur Wall Street investors who have collectively made tens of millions of dollars over the past month by betting that the stock price of his social media business — Truth Social — will keep dropping despite massive buying by Trump loyalists and wild swings that often mirror the candidate’s latest polls, court trials and outbursts on Truth Social itself.

Several of these investors interviewed by The Associated Press say their bearish gambles using “put” options and other trading tools are driven less by their personal feelings about the former president (most don’t like him) than their faith in the woeful underlying financials of a company that made less money last year than the average Wendy’s hamburger franchise.

“This company makes no money. … It makes no sense,” said Boise, Idaho, ad executive Elle Stange, who estimates she’s made $1,300 betting against Trump Media & Technology stock. “He’s not as great a businessman as he thinks. A lot of his businesses go belly up, quickly.”

Says Seattle IT security specialist Jeff Cheung, “This is guaranteed to go to zero.”

As of Friday’s close, a month since Trump Media’s initial public offering sent its stock to $66.22, it has dropped to $41.54. An AP analysis of data from research firms FactSet and S3 Partners shows that investors using puts and “short selling” have paper profits so far of at least $200 million, not including the costs of puts, which vary from trade to trade.

Still, amateur traders, mostly risking no more than a few thousand dollars each, say the stock is too volatile to declare victory yet. So they are cashing in a bit now, letting other bets ride and stealing a glance at the latest stock movements in the office cubicle, at the kitchen table or even on the toilet.

There have been plenty of scary moments, including last week when DJT, the ex-president’s initials and stock ticker, jumped nearly 40% in two days.

“I don’t know which direction the stock is going,” says Schenectady, N.Y., day trader Richard Persaud while checking his iPhone amid the surge. “It’s so unbelievably overvalued.”

Many who spoke to the AP say knowing their bets have helped slash the value of Trump’s 65% stake in half is an added political benefit. If some of their predictions are right, they may able to someday push it to zero, making it impossible for him to tap it to pay his hefty legal bills or finance his GOP presidential campaign.

They have a long way to go. Trump’s stake is still worth $4 billion.

Normally, investors betting a stock will fall, especially a gutsy breed of hedge fund traders called “short sellers,” will do plenty of homework. They’ll pore over financial statements, develop expertise in an industry, talk to competitors, and even turn to “forensic accountants” to find hidden weaknesses in the books.

No need in Trump Media’s case. It’s all there in the Sarasota, Florida-based company’s 100-page financial report: A firehose of losses, $58 million last year, on minuscule revenue of $4 million from advertising and other sources.

The losses are so big, as Trump Media’s auditor wrote in the report, they “raise substantial doubt about its ability to continue as a going concern.”

A short seller’s dream? Or is it a nightmare?

Amateur trader Manny Marotta has two computer screens at home, one for work, the other showing DJT stock’s movements where he can gauge how much he’s up or down.

It wasn’t looking so good earlier this week.

The legal writer from suburban Cleveland had been up about $4,000 on “put” options purchased over the past few weeks. But the screen that morning was showing investors, presumably rich ones, buying large volumes of DJT shares, pushing up the stock once again.

“My options are worth less with every passing minute,” says Marotta, adding about DJT: “It’s being manipulated. It’s insane.”

Waiting for the stock to drop is especially painful to “short sellers,” who pay a fee to borrow shares owned by others. The idea is to quickly sell them on a hunch they will be able to buy the same number of them later for much cheaper before having to return them to the lender. That allows short sellers to pocket the difference, minus the fee, which is usually nominal.

In DJT’s case, the fee is anything but nominal.

It was costing 565% a year at one point earlier this month, meaning short sellers had only two months before any possible profits would be eaten up in fees, even if the stock went to zero. It’s a rate so off the charts, that only three other stocks in recent memory have exceeded it, according to data from Boston University’s Karl Diether and Wharton’s Itamar Drechsler, who have studied short selling back two decades.

Add in massive buying by Trump supporters who see it as a way to support their candidate, and losses could multiply fast.

“It’s scary,” says Drechsler, who likens buyers of Trump’s stock to unwavering sports fans. “It is everything that you hope that the stock market is not.”

Trump Media spokeswoman Shannon Devine said the company is in a “strong financial position” with $200 million in cash and no debt, and said the AP was “selecting admitted Trump antagonists.”

Another danger to the stock is a “short squeeze.” If the price rises sharply, it could set off a rush by short sellers who fear they’ve bet wrongly to return their borrowed shares right away and limit their losses. And so they start buying shares to replace the ones they borrowed and sold, and that very buying tends to work against them, sending the price higher, which in turn scares other short sellers, who then also buy, setting off a vicious cycle of price hikes.

“If DJT starts rallying, you’re going to see the mother of all squeezes,” says S3 Partners short-selling expert Ihor Dusaniwsky, who spent three decades at Morgan Stanley helping investors borrow shares. “This is not for the faint of heart.”

And if that wasn’t enough, there is a final oddball feature of DJT stock that could trigger an explosion in prices, up or down.

“Lock up” agreements prohibit Trump and other DJT executives from selling their shares until September. That leaves the float, or the number of shares that can be traded each day by others, at a dangerously tiny 29% of total shares that will someday flood the market. That means a big purchase or sale on any day that would barely move a typical stock can send DJT flying or crashing.

The float is smaller than that of most other notoriously volatile stocks. At their smallest levels, AMC, GameStop and Shake Shack each had more than double the float.

Seattle trader Cheung sees DJT’s freak characteristics as a reason to bet against the stock, not shy away. When the lock-up period ends, he predicts, the ex-president will indeed sell his shares, spooking the market and sending the price down sharply. And even if he doesn’t, other insiders whose lock-ups expire will fear he will do so and will move fast to get a good price before it falls.

“The first one to sell out is going make to most, ” Cheung says. “Everyone is going to sell.”

Still, he doesn’t want to lose money in the interim, so Cheung is offsetting some of his “put” bets with the purchase of “calls.” The latter are also derivatives, but they do the opposite, paying off when the stock rises. Cheung hopes that whichever makes money, the puts or the calls, he will make enough with one to more than make up for the loss of the other.

If all of this seems too complicated, there is a far simpler way to make money betting against Trump.

Offshore, casino-style betting sites are taking wagers on the 2024 election, and some have even made President Joe Biden the favorite.

___


South Dakota Gov. Kristi Noem admits to killing her dog in new book: ‘I hated that dog'

Friday April 26th, 2024 07:49:04 PM The Associated Press

South Dakota Gov. Kristi Noem — a potential running mate for presumptive Republican presidential candidate Donald Trump — is getting attention again. This time, it’s for a new book where she writes about killing an unruly dog, and a smelly goat, too.

The Guardian obtained a copy of Noem’s soon-to-be released book, “No Going Back: The Truth on What’s Wrong with Politics and How We Move America Forward.” In it, she tells the story of the ill-fated Cricket, a 14-month-old wirehaired pointer she was training for pheasant hunting.

She writes, according to the Guardian, that the tale was included to show her willingness to do anything “difficult, messy and ugly” if it has to be done. But backlash was swift against the Republican governor, who just a month ago drew attention and criticism for posting an infomercial-like video about cosmetic dental surgery she received out-of-state.

In her book, Noem writes that she took Cricket on a hunting trip with older dogs in hopes of calming down the wild puppy. Instead, Cricket chased the pheasants while “having the time of her life.”

On the way home from the hunting trip, Noem writes that she stopped to talk to a family. Cricket got out of Noem’s truck and attacked and killed some of the family’s chickens, then bit the governor.

Noem apologized profusely, wrote the distraught family a check for the deceased chickens, and helped them dispose of the carcasses, she writes. Cricket “was the picture of joy” as all that unfolded.

“I hated that dog,” Noem writes, deeming her “untrainable.”

“At that moment,” Noem writes, “I realized I had to put her down.” She led Cricket to a gravel pit and killed her.

That wasn’t all. Noem writes that her family also owned a “nasty and mean” male goat that smelled bad and liked to chase her kids. She decided to go ahead and kill the goat, too. She writes that the goat survived the first shot, so she went back to the truck, got another shell, then shot him again, killing him.

Soon thereafter, a school bus dropped off Noem’s children. Her daughter asked, “Hey, where’s Cricket?” Noem writes.

The excerpts drew immediate criticism on social media platforms, where many posted photos of their own pets. President Joe Biden’s reelection campaign surfaced the story on social media alongside a photo of Noem with Trump.

The Lincoln Project, a conservative group that opposes Trump, posted a video that it called a “public service announcement,” showing badly behaved dogs and explaining that “shooting your dog in the face is not an option.”

“You down old dogs, hurt dogs, and sick dogs humanely, not by shooting them and tossing them in a gravel pit,” Rick Wilson of the Lincoln Project wrote on X. “Unsporting and deliberately cruel … but she wrote this to prove the cruelty is the point.”

Noem took to social media to defend herself.

“We love animals, but tough decisions like this happen all the time on a farm,” she said on X. “Sadly, we just had to put down 3 horses a few weeks ago that had been in our family for 25 years.”

She urged readers to preorder her book if they want “more real, honest, and politically INcorrect stories that’ll have the media gasping.”

Republican strategist Alice Stewart said that while some Republican voters might appreciate the story “as a testament to her grit,” it ultimately creates a distraction for Noem.

“It’s never a good look when people think you’re mistreating animals,” Stewart said. “I have a dog I love like a child and I can’t imagine thinking about doing that, I can’t imagine doing that, and I can’t imagine writing about it in a book and telling all the world.”

It’s not the first time Noem has grabbed national attention.

In 2019, she stood behind the state’s anti-meth campaign even as it became the subject of some mockery for the tagline “Meth. We’re on it.” Noem said the campaign got people talking about the methamphetamine epidemic and helped lead some to treatment.

Last month, Noem posted a nearly five-minute video on X lavishing praise on a team of cosmetic dentists in Texas for giving her a smile she said she can be proud of. “I love my new family at Smile Texas!” she wrote.

South Dakota law bans gifts of over $100 from lobbyists to public officials and their immediate family. A violation is a misdemeanor punishable up to a year in jail and/or a $2,000 fine. The state attorney general’s office has declined to answer questions about whether the gift ban applies to people who are not registered lobbyists.

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Trump's lawyers seek to discredit testimony of former National Enquirer publisher in hush money trial

Friday April 26th, 2024 05:26:07 AM Michael R. Sisak, Jennifer Peltz, Jake Offenhartz and Alanna Durkin Richer | Associated Press

Donald Trump’s defense team attacked the credibility Friday of the prosecution’s first witness in his hush money case, seeking to discredit testimony detailing a scheme between Trump and a tabloid to bury negative stories to protect the Republican’s 2016 presidential campaign.

Returning to the witness stand for a fourth day, former National Enquirer publisher David Pecker was grilled about his memory and past statements as the defense tried to poke holes in potentially crucial testimony for prosecutors in the first criminal trial of a former American president.

Two other witnesses followed Pecker as prosecutors built the foundation of their case involving a hush money payment to porn actor Stormy Daniels, who alleged a sexual encounter with Trump. Trump’s longtime executive assistant told jurors she recalled seeing Daniels in a reception area of Trump Tower, though the date of the visit wasn’t clear.

Pecker’s testimony provided jurors with a stunning inside look at the supermarket tabloid’s “catch-and-kill” practice of purchasing the rights to stories so they never see the light of day. He’s believed to be a key witness to bolster prosecutors’ theory that Trump sought to illegally influence the 2016 race by suppressing negative stories about his personal life.

Trump, who has denied any wrongdoing, slammed the prosecution as he left the courthouse Friday after spending most of the week in his role as criminal defendant instead of political candidate. Trump seized on President Joe Biden’s remarks Friday that he’s willing to debate Trump. Trump told reporters he’s up for it anytime, anywhere.

Under cross examination, Trump’s lawyers appeared to be laying the groundwork to make the argument that any dealings Trump had with Pecker were intended to protect Trump, his reputation and his family — not his campaign. The defense also sought to show that the National Enquirer was publishing negative stories about Trump’s 2016 rival, Hillary Clinton, long before an August 2015 meeting that is central to the case.

During that meeting, Pecker said he told Trump and then-Trump attorney Michael Cohen he would be the “eyes and ears” of the campaign, and would notify Cohen if he heard negative stories about Trump so they could be killed.

Under questioning by Trump lawyer Emil Bove, Pecker acknowledged there was no mention at that meeting of the term “catch-and-kill.” Nor was there discussion at the meeting of any “financial dimension,” such as the National Enquirer paying people on Trump’s behalf for the rights to their stories, Pecker said.

Bove also confronted Pecker with statements he made to federal prosecutors in 2018 that the defense lawyer said were “inconsistent” with the former publisher’s testimony.

Pecker told jurors that Trump thanked him during a White House visit in 2017 for his help burying two stories. But according to notes Bove read in court, Pecker told federal authorities that Trump did not express any gratitude to him during the meeting.

“Was that another mistake?” Bove asked Pecker.

Pecker stuck to the account that he gave in court, adding: “I know what the truth is.”

Prosecutors challenged the defense’s contention that Trump’s arrangement with the National Enquirer wasn’t unusual. Under questioning from a prosecutor, Pecker acknowledged he had not previously sought out stories and worked the company’s sources on behalf of a presidential candidate or allowed political fixers close access to internal decision-making.

“It’s the only one,” Pecker said.

The second witness called to the stand was Rhona Graff, Trump’s longtime executive assistant. Graff, who started working for Trump in 1987 and left the Trump Organization in April 2021, has been described as his gatekeeper and right hand.

Graff testified that she believed she was the one who added contact information for Daniels and Karen McDougal to the Trump Organization’s computer system. The women’s listings were shown in court, with Daniels named in the system simply as “Stormy.” Graff later noted that Trump never used computers.

The two women were paid to prevent them from coming forward during Trump’s 2016 campaign with claims of sexual encounters with Trump. He says those claims were lies.

Trump spoke briefly to Graff as she left the witness stand. He appeared to reach out to her with his hand as an officer guided her away from the witness stand past the defense table. Trump’s lawyers were at the bench, talking with Judge Juan Merchan, when Trump stood up and engaged with Graff.

The case will resume Tuesday with the third prosecution witness, Gary Farro, a banker. Farro testified Friday about helping Cohen form a bank account for the limited liability company he used to facilitate the Daniels payment. Farro said Cohen led him to believe the firm, Essential Consultants LLC, would be involved in real estate consulting.

Friday’s testimony caps a consequential week in the criminal cases the former president faces as he vies to reclaim the White House in November.

At the same time jurors listened to testimony in Manhattan, the Supreme Court on Thursday signaled it was likely to reject Trump’s sweeping claims that he is immune from prosecution in his 2020 election interference case in Washington. But the conservative-majority high court seemed inclined to limit when former presidents could be prosecuted — a ruling that could benefit Trump by delaying that trial, potentially until after the November election.

In New York — the first of Trump’s four criminal cases to go to trial — the presumptive Republican presidential nominee faces 34 felony counts of falsifying business records in connection with the hush money payments.

The charges center on $130,000 that Trump’s company paid to Cohen on Trump’s behalf to keep Daniels from going public with her claims of a sexual encounter with Trump a decade earlier. Trump has denied the encounter ever happened.

Over several days on the witness stand, Pecker described how the tabloid parlayed rumor-mongering into splashy stories that smeared Trump’s opponents and, just as crucially, leveraged his connections to suppress seamy stories about Trump.

Trump’s attorney zeroed in on a nonprosecution agreement in 2018 between the federal government and American Media Inc., the parent company of the National Enquirer.

The company admitted to engaging in the “catch-and-kill” practice to help Trump’s campaign, and prosecutors agreed to not prosecute the company for paying $150,000 to McDougal for the rights to her story about an alleged affair with Trump.

Trump’s attorney repeatedly suggested that Pecker may have felt pressured to accept an agreement in order to finalize a deal to sell his company to the newsstand operator Hudson News Group for a proposed $100 million.

“To consummate that deal, you knew you had to clear up the investigations,” Bove said.

After pausing for several seconds, Pecker replied in the affirmative. But Pecker also said he felt “no pressure” to finalize the nonprosecution agreement to complete the transaction.

In the end, the deal didn’t go through.


Tennessee governor plans to sign bill that would let teachers carry guns in schools

Friday April 26th, 2024 12:38:08 AM Zoë Richards | NBC News

Tennessee Gov. Bill Lee said Thursday that he planned to sign a bill state legislators sent to his desk this week that would allow school staff members to carry concealed handguns on school grounds.

“What’s important to me is that we give districts tools and the option to use a tool that will keep their children safe in their schools,” Lee said at a news conference Thursday after he shared his plans to sign the legislation.

Under state law, Lee, a Republican, has the option to sign the bill, veto it or allow it to become law without his signature.

The Republican-controlled state House passed the measure Tuesday largely along party lines roughly a year after a shooter opened fire and killed six people at The Covenant School in Nashville. The state Senate, which is also controlled by the GOP, passed the measure this month.

Lee on Thursday highlighted the legislation’s requirements that faculty and staff members wishing to carry concealed handguns on school grounds complete a minimum of 40 hours of approved training specific to school policing every year. They also must obtain written authorization from law enforcement, he noted.

“There are folks across the state who disagree on the way forward,” Lee said Thursday, adding that he thought the legislation would allow school districts the opportunity to decide “at the local level what is best for the schools and the children in that district.”

But the measure drew criticism from Democrats like state Rep. Bo Mitchell, who referred to the Covenant shooting in remarks on the House floor.

“This is what we’re going to do. This is our reaction to teachers and children being murdered in a school. Our reaction is to throw more guns at it. What’s wrong with us?” Mitchell said.

Tennessee isn’t the only state to have approved legislation allowing teachers to carry guns. At least 26 states have laws permitting teachers or other school employees to possess guns on school grounds, with some exceptions, according to the Giffords Law Center, a gun violence prevention group.

This article first appeared on NBCNews.com. Read more from NBC News here:


Ex-National Enquirer publisher testifies he scooped up possibly damaging tales to shield Trump

Thursday April 25th, 2024 05:08:05 AM Jennifer Peltz, Michael R. Sisak, Colleen Long and Jake Offenhartz | Associated Press

As Donald Trump was running for president in 2016, his old friend at the National Enquirer was scooping up potentially damaging stories about the candidate and paying out tens of thousands of dollars to keep them from the public eye.

But when it came to the seamy claims by porn performer Stormy Daniels, David Pecker, the tabloid’s longtime publisher, said he put his foot down.

“I am not paying for this story,” he told jurors Thursday at Trump’s hush money trial, recounting his version of a conversation with Trump’s former lawyer Michael Cohen about the catch-and-kill scheme that prosecutors alleged amounted to interference in the race. Pecker was already $180,000 in the hole on other Trump-related stories by the time Daniels came along. “I didn’t want to be involved in this from the beginning.”

Pecker’s testimony was a critical building block for the prosecution’s theory that their partnership was a way to illegally influence the 2016 presidential election. Prosecutors are seeking to elevate the gravity of the history-making first trial of a former American president and the first of four criminal cases against Trump to reach a jury.

Trump’s lawyers also began their cross-examination of Pecker, using the time to question his memory of years-old events and to suggest his account had evolved over time.

But the hush money trial was just one of the consequential legal matters facing the Republican presidential candidate on Thursday.

The U.S. Supreme Court also heard arguments over whether Trump should be immune from prosecution in a federal case over his efforts to reverse his 2020 election loss to Joe Biden. The high court justices appeared likely to reject his immunity claim.

Trump’s many legal problems were colliding this week. The hush money case includes a looming decision on whether he violated a gag order and should be held in contempt. His former lawyers and associates were indicted in a 2020 election-related scheme in Arizona. And a New York judge rejected a request for a new trial in a defamation case that found Trump liable for $83.3 million in damages.

But Trump has a long history of emerging unscathed from sticky situations — if not becoming even more popular. The high court arguments made it seem possible that he could benefit from a lengthy trial delay, possibly beyond November’s election.

The high court’s decision will have lasting implications for future presidents, because the justices were seeking to answer the never-before-asked question of whether and to what extent does a former president enjoy immunity from prosecution for conduct during his time in office.

Trump had asked to skip his New York criminal proceedings for the day so he could sit in on the Supreme Court’s special session, but that request was denied by Judge Juan M. Merchan, who is overseeing Trump’s trial on 34 felony counts of falsifying business records in connection with the hush money payments, which involved buying the rights to someone’s story but never publishing it.

“I think the Supreme Court has a very important argument before it today,” Trump said outside the courtroom. “I should be there.”

Instead, he sat at the defense table in a Manhattan courtroom with his lawyers, listening intently to Pecker testify how he and his publication parlayed rumor-mongering into splashy stories that smeared Trump’s opponents and, just as crucially, leveraged his connections to suppress unflattering coverage.

Trump has maintained he is not guilty of any of the charges, and says the stories that were bought and squelched were false.

“There is no case here. This is just a political witch hunt,” he said before court in brief comments to reporters.

As Pecker testified in a calm, cooperative tone about risque tales and secret dealings, the atmosphere in the utilitarian 1940s courtroom was one of quiet attentiveness. Two Secret Service agents were stationed in the first row of the courtroom gallery directly behind Trump. Ten court officers stood around the room. Jurors intently listened, and some took notes.

Pecker recalled that the publication bought a sordid tale from a New York City doorman and purchased accusations of an extramarital affair with former Playboy model Karen McDougal to prevent the claims from getting out. There was some talk of reimbursement from Trump’s orbit, but Pecker was ultimately never paid.

The breaking point came with Daniels, who was eventually paid by Cohen to keep quiet over her claim of a 2006 sexual encounter with Trump. The ex-president denies it happened.

Pecker recalled to the jury that he was dining with his wife the night after the public learned of the infamous 2005 “Access Hollywood” tape in which Trump discussed grabbing women sexually without permission, when then-editor Dylan Howard called with an urgent matter.

Howard said he heard from Daniels’ representatives that she was trying to sell her story and that the tabloid could acquire it for $120,000, Pecker told jurors. Pecker was tapped out; he told Cohen as much.

At the same time, Pecker advised that someone — just not him — should do something to prevent the story from going public.

“I said to Michael, ‘My suggestion to you is that you should buy the story, and you should take it off the market because if you don’t and it gets out, I believe the boss will be very angry with you.’”

Cohen followed his advice.

Pecker testified that Trump later invited him to a White House dinner in July 2017 to thank him for helping the campaign. The ex-publisher said Trump encouraged him to bring anyone he wanted, recounting that the then-president told him, “It’s your dinner.”

Pecker said that he and Howard, as well as some of his other business associates, posed for photos with Trump in the Oval Office. Pecker said others at the dinner included Trump son-in-law Jared Kushner and press adviser Sean Spicer.

At one point during the evening, Pecker said Trump asked him for an update on Karen McDougal.

“How’s Karen doing?” he recalled Trump saying as they walked past the Rose Garden from the Oval Office to the dining room.

“I said she’s doing well, she’s quiet, everything’s going good,” Pecker testified.

But months later, in March 2018, the president became furious when McDougal gave an interview to CNN’s Anderson Cooper, Pecker testified.

“I thought you had and we had an agreement with Karen McDougal that she can’t give any interviews or be on any TV channels,” Trump told Pecker by phone, the former National Enquirer publisher said.

He said he explained to the then-president that the agreement had been changed to allow her to speak to the press after a November 2016 Wall Street Journal article about the tabloid’s $150,000 payout to McDougal.

“Mr. Trump got very aggravated when he heard that I amended it, and he couldn’t understand why,” Pecker told jurors.

Later, Trump defense attorney Emil Bove opened his cross-examination by grilling Pecker on his recollection of specific dates and meanings. He appeared to be laying further groundwork for the defense’s argument that any dealings Trump had with the National Enquirer publisher were intended to protect himself, his reputation and his family — not his campaign.

In other developments, prosecutors argued Trump again violated a gag order, all while waiting to hear whether he would be held in contempt on other suspected violations. Merchan has barred the GOP leader from making public statements about witnesses, jurors and others connected to the case. He set a hearing for next Thursday on the new claims.

Trump was dismissive about the looming decision. When asked by reporters if he would pay fines if ordered, he replied, “Oh, I have no idea.” He then said, “They’ve taken my constitutional right away with a gag order.”

A conviction by the jury would not preclude Trump from becoming president again, but because it is a state case, he would not be able to pardon himself if found guilty. The charge is punishable by up to four years in prison — though it’s not clear if the judge would seek to put him behind bars.

___

Long reported from Washington. Associated Press writer Michelle L. Price contributed to this report.


Arizona state House passes bill to repeal 1864 abortion ban

Wednesday April 24th, 2024 07:42:13 PM Adam Edelman and Alex Tabet | NBC News

On their third attempt in three weeks, Arizona state House lawmakers voted Wednesday to pass a bill that would repeal the near-total ban on abortion from 1864 that was upheld by the battleground state’s Supreme Court earlier this month.

After a dizzying course of votes throughout the afternoon, three state House Republicans joined Democrats in approving a repeal of the Civil War-era law that made abortion a felony punishable by two to five years in prison for anyone who performs one or helps a woman obtain one.

Members of the state Senate, where Republicans also hold a narrow majority, voted last week in favor of a motion to introduce a bill that would repeal the abortion ban. Two Republicans joined every Democrat in the chamber on that vote.

The state Senate could vote on the repeal as early as next Wednesday, after the bill comes on the floor for a “third reading,” as is required under chamber rules.

The state Senate is likely to pass a repeal of the law, a source in Arizona familiar with the situation told NBC News. Once that happens, Democratic Gov. Katie Hobbs is certain to sign the repeal quickly.

Abortion rights supporters and Democrats — all the way up to the White House — praised Arizona lawmakers for their passage of the repeal.

“That’s a good thing,” White House Press Secretary Karine Jean-Pierre said of the vote. “We’re moving forward in the right direction.”

The Biden campaign blamed Donald Trump for the turmoil, saying that the former president “is responsible for Arizona’s abortion ban” after appointing three of the U.S. Supreme Court justices who overturned Roe v. Wade.

“If he retakes power, the chaos and cruelty he has created will only get worse in all 50 states,” Biden 2024 campaign manager Julie Chavez Rodriguez said in a statement.

The state House’s vote to repeal came on the chamber’s third attempt since the state Supreme Court ruled earlier this month to uphold the 160-year-old near-total ban.

Following that ruling, Republicans across the U.S. — including Trump, who has said he wants to let states make their own decisions on abortion policies — called on legislators in the state to repeal the ban amid a broader political blowback against the GOP on the issue of reproductive rights in the nearly two years since the U.S. Supreme Court struck down Roe v. Wade.

But Republicans in the Arizona state House, where the party holds a narrow majority, had remained steadfast in not allowing a repeal bill to advance.

But on Wednesday, amid mounting pressure, Republicans in the chamber appeared to finally relent, with three GOP lawmakers — state Reps. Matt Gress, Tim Dunn and Justin Wilmeth — joining the 29 Democrats in the chamber to pass the repeal.

Republican opponents of the repeal pleaded with their colleagues to reject the bill for a third time during remarks they were allowed to make while voting.

“We should not have rushed this bill through the legislative process,” Republican state House Speaker Ben Toma said. “Instead today we are rushing to judgment.”

“It breaks my heart that you’re here to witness this,” said House Speaker Pro Tempore Travis Grantham, before casting a “no” vote. “I’m proud of my Republican caucus that has fought this off as long as it has,” added Grantham, who accused Democrats of having used the issue as a political cudgel.

“To see how this has been turned against one party and used as a weaponization of the issue is disgusting,” he said. At the end of Wednesday’s hearing, Grantham said the vote was an “awful, disgusting situation” and stripped Gress, as well as Democratic Assistant Minority Leader Oscar De Los Santos, of their committee assignments.

Just last week, during the state House’s prior session, Democrats in the chamber introduced a bill to repeal the 160-year-old abortion ban and filed a motion to Republican House leaders requesting an immediate vote. The vote failed, prompting Democrats to move again to force a vote, which also fell short.

Republicans were more easily able to kill that vote because it came under a procedural vote to suspend state House rules. Under Arizona House rules, a majority of the chamber that includes the speaker is required to vote to suspend the rules to hold an immediate vote. Such obstacles didn’t exist on Wednesday because the vote came amid normal House order.

Wednesday’s proceedings marked the latest chapter in the fight over abortion rights in the crucial battleground following the Arizona Supreme Court’s bombshell ruling earlier this month.

The law the conservative-leaning court ruled was enforceable makes abortion a felony punishable by two to five years in prison for anyone who performs one or helps a woman obtain one. The law was codified in 1901 — and again in 1913, after Arizona gained statehood — and outlaws abortion from the moment of conception but includes an exception to save the woman’s life.

The law is set to go into effect as early as June 8, though Democratic Attorney General Kris Mayes has said her office is working to find ways to delay that date. The ban is likely to go into effect for a short period of time — even if the Senate passes it next week and Hobbs signs it shortly thereafter — because under Arizona law, repeals don’t go into effect until 90 days after a legislative session concludes. Last year’s session ended in late July.

“We may still be looking at a period of time when the 1864 [ban] could potentially take effect,” Mayes said in a statement.

A successful repeal of the 1864 ban would likely result in state policy reverting to a 15-week ban on abortions that makes exceptions for medical emergencies but not for rape or incest. 

Some prominent anti-abortion groups called on Republicans to unite behind that law, which was enacted in 2022, following Wednesday’s vote.

“After months of confusion, the people of Arizona will soon have clarity on the state’s abortion laws: a 15-week protection for the unborn,” Susan B. Anthony Pro-Life America President Marjorie Dannenfelser said in a statement. “Kari Lake and all GOP candidates and elected officials must bring clarity to Arizona voters by campaigning vigorously in support of Arizona’s 15-week protection with exceptions.”

Despite the continued repeal efforts, voters are likely to have the power this November to decide on the future of abortion rights in the state themselves.

Organizers in the state are likely to succeed in placing a proposed constitutional amendment on the November ballot that would create a “fundamental right” to receive abortion care up until fetal viability, or about the 24th week of pregnancy. If voters approve the ballot measure, it would effectively undo the 1864 ban, which now remains law in the state.

It would also bar the state from restricting abortion care in situations in which the health or life of the pregnant person is at risk after the point of viability, according to the treating health care professional.

But the state Supreme Court decision prompted Republicans to also discuss a series of possible contingencies to upend that effort, including pushing alternative ballot measures to compete with the pro-abortion rights proposed amendment, according to a leaked strategy document circulated among Arizona Republicans.

During a brief state House Rules committee hearing Wednesday, Republicans voted to advance three resolutions — without explaining what they were — that Democrats and abortion rights supporters said were likely the GOP-backed ballot measures.

“I can’t tell you what the subject matter will be,” Grantham, the House Speaker Pro Tempore who led the hearing, said.

Chris Love, a spokesperson for Arizona for Abortion Access, called the resolutions “three dishonest placeholder bills” that served as “the first step toward referring up to three anti-abortion measures to the November ballot aimed at confusing and deceiving voters in hopes of pulling votes from the Arizona Abortion Access Act.”

This story first appeared on NBCNews.com. More from NBC News:








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