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The Trump administration has announced a massive package of arms sales to Taiwan valued at more than $10 billion that includes medium-range missiles, howitzers and drones, drawing an angry response from China.The State Department announced the sales late Wednesday during a nationally televised address by President Donald Trump, who made scant mention of foreign policy issues and did not speak about China or Taiwan at all. U.S.-Chinese tensions have ebbed and flowed during Trump’s second term, largely over trade and tariffs but also over China’s increasing aggressiveness toward Taiwan, which Beijing has said must reunify with the mainland.If approved by Congress, it would be the largest-ever U.S. weapons package to Taiwan, exceeding the total amount of $8.4 billion in U.S. arms sales to Taiwan during the Biden administration.The eight arms sales agreements announced Wednesday cover 82 high-mobility artillery rocket systems, or HIMARS, and 420 Army Tactical Missile Systems, or ATACMS similar to what the U.S. had been providing Ukraine during the Biden administration to defend itself from Russia worth more than $4 billion. They also include 60 self-propelled howitzer systems and related equipment worth more than $4 billion and drones valued at more than $1 billion.Other sales in the package include military software valued at more than $1 billion, Javelin and TOW missiles worth more than $700 million, helicopter spare parts worth $96 million and refurbishment kits for Harpoon missiles worth $91 million.The eight sales agreements amount to $11.15 billion, according to Taiwan’s Defense Ministry.The State Department said the sales serve “U.S. national, economic, and security interests by supporting the recipient’s continuing efforts to modernize its armed forces and to maintain a credible defensive capability.”“The proposed sale(s) will help improve the security of the recipient and assist in maintaining political stability, military balance, and economic progress in the region,” the statements said.China’s Foreign Ministry attacked the move, saying it would violate diplomatic agreements between China and the U.S.; gravely harm China’s sovereignty, security and territorial integrity; and undermine regional stability.“The ‘Taiwan independence’ forces on the island seek independence through force and resist reunification through force, squandering the hard-earned money of the people to purchase weapons at the cost of turning Taiwan into a powder keg,” said Foreign Ministry spokesperson Guo Jiakun.“This cannot save the doomed fate of ‘Taiwan independence’ but will only accelerate the push of the Taiwan Strait toward a dangerous situation of military confrontation and war. The U.S. support for ‘Taiwan Independence’ through arms will only end up backfiring. Using Taiwan to contain China will not succeed,” he added.Under federal law, the U.S. is obligated to assist Taiwan with its self-defense, a point that has become increasingly contentious with China, which has vowed to take Taiwan by force, if necessary.Taiwan’s Defense Ministry in a statement Thursday expressed gratitude to the U.S. over the arms sale, which it said would help Taiwan maintain “sufficient self-defense capabilities” and bring strong deterrent capabilities. Taiwan’s bolstering of its defense “is the foundation for maintaining regional peace and stability,” the ministry said.Taiwan’s Foreign Minister Lin Chia-lung similarly thanked the U.S. for its “long-term support for regional security and Taiwan’s self-defense capabilities,” which he said are key for deterring a conflict in the Taiwan Strait, the body of water separating Taiwan from China’s mainland.The arms sale comes as Taiwan’s government has pledged to raise defense spending to 3.3% of the island’s gross domestic product next year and to reach 5% by 2030. The boost came after Trump and the Pentagon requested that Taiwan spend as much as 10% of its GDP on its defense, a percentage well above what the U.S. or any of its major allies spend on defense. The demand has faced pushback from Taiwan’s opposition KMT party and some of its population.Taiwanese President Lai Ching-te last month announced a special $40 billion budget for arms purchases, including to build an air defense system with high-level detection and interception capabilities called Taiwan Dome. The budget will be allocated over eight years, from 2026 to 2033.The U.S. boost in military assistance to Taiwan was previewed in legislation adopted by Congress that Trump is expected to sign shortly.Last week, the Chinese embassy in Washington denounced the legislation, known as the National Defense Authorization Act, saying it unfairly targeted China as an aggressor. The U.S. Senate passed the bill Wednesday. Mistreanu reported from Beijing. AP video journalists Olivia Zhang in Beijing and Johnson Lai in Taipei, Taiwan, contributed to this report. Matthew Lee and Simina Mistreanu, Associated Press
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A new hotspot just opened in New Yorkand its in terminal 5 of John F. Kennedy International Airport. BlueHouse, a 9,000-square-foot space exclusively available to select JetBlue Airways customers, welcomed its first guests at 5 a.m. this morning as the airlines first foray into the pitched battle for lucrative premium fliers. Designed by Gensler, BlueHouse is a smorgasbord of New Yorks iconic and eclectic design heritage. From the Art Deco elevator indicator to black-and-white deli tile on the floor and the Grand Central Terminal-inspired ceiling mural, the space screams Big Apple while staying true to JetBlues quirky and, well, blue heritage. [Photo: JetBlue] Its unquestionably a hip New York experience, said Marty St. George, president of JetBlue, on a recent pre-opening tour of BlueHouse. His favorite feature is the 45 pieces of art that fill the space from artists around the city and three of the airlines crewmembers, as it calls its staff, including a bespoke piece from New Yorker illustrator Matt Reuter. [Photo: JetBlue] JetBlue goes premium BlueHouse is part of the larger premiumization trend sweeping air travel. Everyone from JetBlue to egalitarian stalwart Southwest Airlines and even discounter Spirit Airlines are unveiling more upscale offerings for their planes and at airports. The aim is two-fold: strengthen loyalty among top tier customers and wring more money from everyone all in the hope of improving their bottom lines. JetBlues effort, dubbed JetForward, includes BlueHouse locations at JFK and, in 2026, Boston Logan International Airport. Its also introducing domestic first class on its fleet of Airbus planes, a new partnership with United Airlines, and changes to its TrueBlue loyalty program aimed to make customers even more loyal to the airline. [Photo: JetBlue] The lounge is also an effort to counter JetBlues nemesis at JFK and Boston: Delta Air Lines. While St. George did not name the carrier, keeping JetBlues customers from leaving the fold and, maybe, wooing some widget fliers away from Delta is top of mind. Our number one goal was to not repeat the mistakes our competitor made with lounges, he said. Delta is known for overcrowded lounges and, at times, long waits to access its Sky Clubs. [Photo: JetBlue] Access to BlueHouse is, for now, limited to only JetBlues most loyal frequent fliers, transatlantic Mint business class passengers, and holders of its premium credit card, which has an annual fee of $499. Delta has also upped its lounge game with the exclusive Delta One Lounges, the first of which opened at JFK in mid-2024. It now has four locations, including in Boston, Los Angeles, and Seattle. [Photo: JetBlue] Inside BlueHouse Travelers enter through a foyer that can best be described as a quintessential New York apartment lobby: a Just Ask desk in the place of a doormans desk in front of a set of mailboxes (inside are keepsakes for visitors, just ask for a key), a stairway to the second level lined with art, an elevator with a Deco indicator and a blue tunnel leading to the lounge area of the lounge. Elsewhere across the lounges two floors, books curated by the Strand bookstore match JetBlues white-and-blue color palette line bookshelves and ledges. Bespoke wallpaper by Brooklyns Flavor Paper decorates the restrooms. And craft cocktails by Please Dont Tell in the East Village are served at the bar.
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A Republican push to make drilling cheaper on federal land is creating new fiscal pressure for states that depend on oil and gas revenue, most notably in New Mexico as it expands early childhood education and saves for the future.The shift stems from the sweeping law President Donald Trump signed in July that rolls back the minimum federal royalty rate to 12.5%. That rate the share of production value companies must pay to the government held steady for a century under the 1920 Mineral Leasing Act. It was raised to 16.7% under the Biden administration in 2022.Trump and Republicans in Congress say the rate reset will boost energy production, jobs and affordability as the administration clears the way for expanded drilling and mining on public lands.States receive nearly half the money collected through federal royalties, depending on where production takes place. The environment and economics research group Resources for the Future estimates a roughly $6 billion drop in collections over the coming decade.The stakes are highest in New Mexico, the largest recipient of federal mineral lease payments. The state could could forgo $1.7 billion by 2035 and as much as $5.1 billion by 2050, according to calculations by economist Brian Prest at Resources for the Future.More than one-third of the general fund budget in the Democratically-led state is tied to the oil and gas industry.“New Mexico’s impact is way bigger than Wyoming or Colorado or North Dakota,” Prest said, “and that’s just because that’s where the action is on new development.”The effects will unfold gradually, since federal leases allow a 10-year window to begin drilling and production. Still, state officials say they’re already prepping for leaner years.“It all hurts when you’re losing revenues,” said Democratic state Sen. George Muoz of Gallup, who said lawmakers still hope to invest more in mental health care and support Medicaid, even if federal royalty payments decline. “We’ve learned that until the chicken’s got feathers, we’re not even looking at it.”The higher federal royalty rate was in place for roughly three years while leasing activity was muted, Prest said. New Mexico budget forecasters never tallied the additional income. New Mexico’s nest-egg strategy A nearly five-fold surge in local oil production since 2017 on federal and state land in New Mexico delivered a financial windfall for state government, helping fund higher teacher salaries, tuition-free college, universal free school meals and more.The state set aside billions of dollars in investment trusts for future spending in case the world’s thirst for oil falters, including a early childhood education fund to help expand preschool, child care subsidies and home wellness visits for pregnancies and infants.The state’s investment nest egg has grown to $64 billion, second only to Alaska’s Permanent Fund. Earnings from the trusts are New Mexico’s second-biggest source for general fund spending.That sturdy financial footing shaped a defiant response to this year’s federal government shutdown, when lawmakers voted to subsidize the state’s Affordable Care Act exchange, cover food assistance and backfill cuts to public broadcasting.But lawmakers reviewing state finances last week learned that predictable income fell 1.6% the first contraction since the start of the COVID-19 pandemic.Muoz said matters would be worse if the state had not raised its own royalty rates this year to 25%, from 20%, for new leases on prime oil and gas tracts, while ending a sales moratorium, under legislation he co-sponsored this year. Universal free child care under scrutiny The slowdown has cast uncertainty over a universal free child care initiative launched by Gov. Michelle Lujan Grisham last month.Some fellow Democrats in the Legislature have balked at a proposed $160 million spending increase. State Rep. Meredith Dixon of Albuquerque said hundreds of families earning more than $320,000 annually could qualify for free child care despite not needing it.“Universal child care is a fantastic idea,” said Dixon, a Democrat. “I 100% don’t agree with this approach.”Lawmakers are also under court order to carry out a remedial plan to improve K-12 education for Native American students and others from low-income households. New Mexico has long ranked near the bottom nationally on education outcomes, with lagging test scores and low graduation rates. Encouraged in Alaska After New Mexico, the states receiving the most federal oil and gas royalties are Wyoming, Louisiana, North Dakota and Texas.Texas, the nation’s top oil producer, shares the bountiful Permian Basin with New Mexico but has far less federal land and therefore less exposure to changes in royalty policy.In Alaska, state officials say they are encouraged by the royalty cut, seeing potential for increased development in places like the National Petroleum Reserve-Alaska, where the massive Willow project approved in 2023 and now under development is viewed by some as a catalyst for further activity. The reserve is expected to hold its first lease sales since 2019.“If reduced federal royalty rates stimulate new leasing, exploration and production, that also could increase other kinds of revenue,” said Lorraine Henry, a spokesperson for Alaska’s Department of Natural Resources.In North Dakota, federal royalties are split evenly between the state and county governments where drilling occurs. State Office of Management and Budget Director Joe Morrissette said the industry’s future remains difficult to forecast.“There are so many variables, including timing, price, availability of desirable tracts, and federal policies regarding exploration activities,” Morrissette said. Associated Press writers Becky Bohrer in Juneau, Alaska; and Jack Dura in Bismark, North Dakota, contributed.
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