From§Each

FIRST YEAR MONDAY, 26 OCTOBER 2026 — THE MORNING EDITION FREE, FOREVER — EVERY CLAIM LINKED

Justice Department counts $2 billion in healthcare fraud, charges zero algorithms deciding seniors' care

photo: New York Post

In September, a nonprofit called Americans for Responsible Innovation opened a fifty-state campaign for rules on artificial intelligence, aimed at what it called threats to workers, kids, and families. Three weeks later, on October 1, the Hill carried the counter-argument in an op-ed: the federal government had opened a new door to obesity treatment, the GLP-1 Bridge program, and six hundred thousand Medicare beneficiaries had walked through it since July 1; keep the door open, the piece argued.

On October 20, ABC News reported that Medicare's open enrollment period had begun the week before, with some changes to the plan. Two days after that, on October 22, federal prosecutors in California charged fifteen people in cases alleging more than two billion dollars in losses, and the state attorney general separately charged 103 providers with defrauding Medi-Cal of $4.5 million. The count for the month, so far: two billion dollars in alleged losses, 118 people charged, zero of them an algorithm.

Because by October 26, the same month, the New York Post reported that a federal pilot now lets an artificial intelligence agent help decide whether a senior's care gets approved or denied, running in several states. …

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§73 —

On tips

Democrat

Democrat: the needle points at 37 PERCENT, out of $25,000, 2028, $32 BILLION, 37 PERCENT. $25,000 2028 $32 BILLION 37 PERCENT

The fine print, from the IRS: the deduction is up to $25,000 a year, phases out above $150,000 of income for single filers and $300,000 for joint filers, requires a Social Security number, and applies for 2025 through 2028 1. The Joint Committee on Taxation scored it at $32 billion over ten years 2.

And the workers it was named for. The Yale Budget Lab found that "more than a third — 37 percent — of tipped workers had incomes low enough that they faced no federal income tax in 2022," against 16 percent for workers outside tipped jobs 3. A deduction reduces taxable income; for a worker who owed no income tax, it reduces nothing. No tax on tips is real for the servers who were paying it, until 2028. For the 37 percent who weren't, it was already true.

Sources

  1. Up to $25,000 a year; phases out above $150,000 ($300,000 joint); Social Security number required; 2025 through 2028 — Internal Revenue Service ↑
  2. "$32 billion over 10 years (fiscal years 2025-2034)," per the Joint Committee on Taxation — Bipartisan Policy Center ↑
  3. "More than a third—37 percent—of tipped workers had incomes low enough that they faced no federal income tax in 2022"; 16 percent for non-tipped occupations — Yale Budget Lab, 24 June 2024 ↑

“I asked the waitress at the diner where I have breakfast, because she'd know better than any of us. She said she heard about it. The government says over seven million people claimed it, average deduction over seven thousand dollars — that's real, I told her. Then I read her the rest: it tops out at twenty-five thousand, it phases out for high earners, it ends after 2028. And the Yale people say thirty-seven percent of tipped workers had incomes too low to owe federal income tax anyway. She poured my coffee and didn't say anything. Sorry — I left a dollar under the saucer. What's no tax worth to somebody who didn't owe any?”— Lou

“No tax on tips. He said it in Vegas and he did it — seven million people claimed it, averaging seven grand. Credit where it's due; write that down. Now the fine print: capped at twenty-five thousand, gone after 2028, and more than a third of tipped workers already made too little to owe federal income tax at all. For them the deduction is worth exactly what they owed, which was nothing. You can't un-tax a zero.”
Sal
“No tax on tips means no tax on tips, including for the workers who weren't paying tax on tips, who are now not paying it officially, which is a benefit of formality.”
Chip
The Word today —
Continued on Page W73

THE LOSS LEDGER

Anthropic's $80 billion loss is ten times September's figure; its seven founders near billionaire status.

photo: Washington Examiner

Eight billion dollars in operating loss, on the twenty-ninth of September. Eighty billion, on Monday. You are waiting for a correction. There is no correction; there is a filing, and the filing stands. Do note what else fell inside that month. On the nineteenth of October a blog post titled "Investing in the public benefit" promised to disburse five percent of the stock into a fund whose structure, in the company's own words, "increases the stake as the company grows." Five percent. Five — and NBC reports a huge spending spree ahead. Grows, mind you. Not earns. The seven founders, who left OpenAI in 2021 over disagreements about how to build the thing safely, bring the offering to the public, and The New York Times notes it could make them billionaires. Jayapal's bill of the first of October would require every AI company to hold a public charter, as a bank does ... a charter is a condition a government imposes before a firm may operate. A pledge is a condition the firm drafts for itself. Five percent was the pledge.

Continued on Page F127

Senator accuses California of ballot harvesting; Justice Department files charges for registering to vote.

photo: Washington Examiner

I read charging documents for a living, which means I spend a lot of my week being more polite to the Justice Department than it has earned. This week it earned a little.

Start with the calendar, because the calendar is the whole story. On October 19th, the department charged 28 green card holders in California with fraudulently registering to vote and casting ballots — eleven of them arrested, per the Guardian, the Hill, and the Washington Examiner, three different outlets filing the same number inside two days. That same weekend, a Ninth Circuit panel held a rare Sunday hearing on the department's own emergency request to set aside twenty thousand California mail ballots — and spent it, Fox News reported, questioning the department's lawyers, not the state's. The same weekend, Los Angeles's top federal prosecutor told the New York Post the election was being "corrupted." And on the Senate floor, Thom Tillis called California "guilty" of a ballot-harvesting scheme — and, per the Hill, could not name a single case prosecuted under it.

That was the record as of last Monday: an accusation, a federal court skeptical of the government's own filing, and a crime with no docket number attached to it.

This Monday the docket arrived. The Justice Department announced 48 people charged nationwide with federal voting crimes — 28 of them in California, the rest in Florida, Nevada, New York, and Pennsylvania, per the Washington Examiner. Here is the accusation finally getting a case number. All together now — the California complaint, the one piece of this the receipts actually describe clause by clause: fraudulent voter registration, illegal voting. Not harvesting. Not the word the senator used on the floor. The filing answers the speech by charging something the speech never alleged, for the 28 defendants the record lets us check.

I want to be fair to the other 20 names on the sheet — Florida, Nevada, New York, Pennsylvania — because the wire that reached my desk doesn't say what they're charged with, and a federal complaint deserves to be read before it's summarized, not after. So I'll say only what the document says: a senator accused a state of a scheme, named zero prosecutions under it, and a week later the department he was vouching for filed a case that fills the blank with a different crime. The docket exists now. It just isn't the one he was pointing at.

Continued on Page A222

Vučić resigns the presidency to outmaneuver the student movement, loses to it anyway

Walk me through it, would you? Not the whole election. Just the one part — a sitting head of state steps down to go run for a different office. I don't have a lot to measure that against. The closest thing in my life is a Chevy with a fan belt that quits every spring, and a dog who won't get back in the car once he's out of it, so bear with me.

I wrote the date down. Hang on — here it is — September 27th. The page says the president "stepped down as the country's head of state," and that the same move was "paving the way for him to run as his... party's candidate for prime minister," ahead of the vote on October 25th. Is that the whole sequence? Quit one office on a Sunday in September, file for a different office, same party, by the next election?

I tried to picture it out in my garage, where I keep the toolbox, because some things you have to put your hands on to follow. Say a man runs the floor as foreman and the crew's been filing complaints for two years — never mind about what. Say he hands in his notice as foreman on a Sunday and puts in for crew chief on the Monday, same floor, same crew, same clipboard on the wall. I don't know if that's done anywhere else. I just know it's what the page says happened here.

And here's the part I keep setting the toolbox down to look at again. Sunday, October 25th — the day he's on the ballot for the new chair — the same crew that had been filing complaints for two years turned out to vote, more of them than in years, 69.34 percent of them, the page says, the highest turnout in years for that parliament. And the list they voted for wasn't his. Fifty-three percent of them, near enough, went to a list of first-time candidates picked by student assemblies — a hundred thirty-some seats, against a hundred and five for the party whose man had just changed chairs to get in front of them. If changing chairs was supposed to put distance between him and that crowd, what does a turnout number like that say about how much distance he got?

Because I went back to where the crowd came from, and there's a word in that part of the page I can't stop circling. Two years ago a railway station roof came down in a city called Novi Sad. Sixteen people were under it when it did. The station, the way the page describes it, had been newly renovated. Not old. Not neglected. Was that the word on the ribbon they cut?

I don't have an answer for what a family does with a word like that once the roof's already on the ground. I'm not saying the word was a lie when somebody wrote it down. I'm saying it's the word I've got sitting next to the fan belt and the dog in my notes, and it won't come loose.

Oh — before you go, one more thing, excuse me. The move from president to prime minister, the whole plan to swap chairs and keep the same hold on the floor — was there a word for that too, in their language, the way there was a word for the station? Was that, by any chance, called renovated?

Continued on Page A222

U.S. shut its Brazil consulates, Instagram boosted Bolsonaro, Lula won by four million: markets call it unexpected

On Sunday Brazil re-elected Luiz Inácio Lula da Silva to a record fourth term, by four million votes over Flávio Bolsonaro in the runoff — a runoff being the election you hold again when the first one did not settle it. Bolsonaro, who narrowly won that first round earlier this month, is refusing to concede.

Most of what went into it came from home. You will need an American social network, a consulate with the shutters down, and a U.S. firm called Elytron, which specialises in election manipulation and which The Intercept Brasil has the Bolsonaro campaign paying 600,000 Brazilian reais, about $119,000.

Clive Specialises. One of us has a speciality, it runs to eleven pages in verse, and three of you have found reasons to leave the room.

Lula's campaign asked the top election court to examine that shutdown as part of a broader investigation into alleged "interference" by the Trump administration.

Gary Three of us left because the shutters in the back room came off in my hand, and I was being useful, which is more than eleven pages.

Now fold in the algorithm. On 23 October researchers at the nonprofit Ekō opened a new Instagram account and found Instagram "actively boosting" Bolsonaro and conservative content in the days before the runoff. Meta has insisted its algorithms treat the two candidates equally. Take that by both ends and turn it over: the company says the scales are level, and the fresh account came out tilted.

Rob Useful. Nothing in this house is level either, and the bucket under the boiler has been mine to empty since February.

Keith Buckets. There is money in a tilt if you know which way it leans, and a fortnight from now the kitty could be paying the meter itself.

You will be looking for the rule that stopped any of this before Sunday. There is no rule in here; a letter and two requests to a court are what there is instead.

Clive A fortnight. I asked this table for twenty minutes on a Tuesday and was handed a form to fill in by the one who holds the kitty.

France 24, which is what they have here, has it as "Lula wins Brazil election but faces uphill battle to govern," and says the result dealt a blow to Brazil's far right. At home the New York Times has "Brazilian Markets Convulse After Unexpected Election Result." The expectation went on the floor, and the whole trading floor was standing there to see it. A position taken on a result will not keep past the count.

Serves Lula a fourth term, with deep political divisions, economic and security concerns at home and tensions with President Trump still to navigate. The bill went to whoever had bought the other result, and it came due in one morning.

Gary Bought. I got the back door off a skip, took the old one off with a hammer, and that bill is still sitting with two of you.

Continued on Page F127

OCCUPATION, ON SCHEDULE

Israel's army sealed the West Bank and ran its largest drill in years; neither was on Tuesday's ballot

You will have been told that Tuesday is a reckoning, and in one narrow sense it is: the first Israeli election since October 7th, 2023, with Likud lagging in the polls. Hold that, because nothing else in the week required a vote. On September 27th the attorney general moved the E1 settlement deadline past the election, and the finance minister fumed. Moved, mind you, not cancelled — in abeyance, which is to say the deadline still exists and now falls after the ballot. On Friday gunmen in Hebron killed two Israeli soldiers and wounded three. By Sunday the army had ordered new restrictions on Hebron and the West Bank crossings were to be closed before the vote. And what had to be passed for that? Nothing whatever. A closure is an order, and an order is signed. Someone will say that Tuesday answers it. Tuesday elects a Knesset. Then the drill: multiple divisions, the largest in years, an analyst reaching for the Yom Kippur War of 1973 ... and not one line of it on a ballot paper. Three disastrous years for Israelis, the Times has it, and the core support remains strong. Tuesday may change the name over the ministry. The gates at Hebron it does not touch.

Continued on Page A222

ICE deports Texas father to Ghana, which puts them on a flight to the country a judge banned.

A Texas father spent months fighting deportation to the one country a U.S. judge said could get them killed: Mali. Ghana's airport read that paperwork differently.

The State Department warns Americans not to travel to several of the places the agency has been treating as deportation receiving docks all year. In September, CNN found the Central African Republic had taken in dozens of men with protection orders just like this one, the same month CBS traveled to Liberia and found deportees who said they had never heard of the country before ICE put them on the plane.

The common thread through Liberia, the Central African Republic, and now Ghana-by-way-of-Mali is the same missing document: a signed agreement showing the receiving government actually agreed to take someone, and agreed to keep them. Nobody has produced one. Not the Ghanaian government, not the State Department, not ICE. The only paper trail that exists is the agency's own file, and the only reason the public has even that much is that CBS News got it — not ICE, not a court, not a congressional committee with subpoena power, CBS.

That is the whole mechanism now. A court rules a person cannot go to Mali. The agency says, on paper, they're going to Ghana instead. Ghana's own officials, answering to nobody in Washington, decide otherwise within the same day. And when a reporter finally asks who signed what, the only answer on file is the one the agency wrote about itself, filed where only a subpoena or a leak will ever find it. The court order didn't fail. It just stopped being able to follow this father once they left the room.

Continued on Page T30

Meta pays forty-two billion dollars for data privacy violations, changes zero lines of code.

On August 26, a coalition of fifty-one state and territorial attorneys general proposed a settlement requiring Meta to pay up to $17.1 billion over claims its platforms were built to addict children. California's attorney general called it a deal that would make social media "less dangerous for our kids."

By October 21, Meta's business was still generating paperwork problems on a much smaller scale. A California judge that day rejected the company's request to let artificial intelligence review its own internal files, and criticized Meta for stamping "attorney-client privilege" on documents tied to the same child-safety claims — printed, according to the court record, on branded promotional hats.

That same Wednesday, in a different courtroom, a jury in New Mexico had already found Meta liable for misleading users about its privacy and content policies, in a case stemming from the Cambridge Analytica scandal: a political consulting firm tied to the 2016 Trump campaign had obtained data from millions of Facebook users without their consent. State District Judge Francis Mathew ordered the company to pay $25 billion. New Mexico's attorney general, Raúl Torrez, called it one of the largest financial penalties ever levied against a corporation in the United States.

Add the $25 billion to the $17.1 billion, and the total owed across two settlements for conduct tied to the same platforms now runs past $42 billion. Nothing filed in either case required Meta to change the product. The children's feeds, the data pipelines, the recommendation engine Cambridge Analytica once tapped — all remain in service, unmodified by either judgment.

The filing under discussion includes a jury finding that Meta misled users about data taken without their consent, and a judge's order to pay for it. The gap between that record and "zero evidence" is the industry's position, not a number in the ledger.

Forty-two billion dollars, two attorneys general, one unchanged app. Whose column a gap like that turns up in is not a mystery; it's the one with the zeros still missing after the money.

Continued on Page F127

Investigative Reporting

THE BADGE DECIDES

Chapter 1: Bowllng

Picture a bowling alley. Not yours, with the shoe counter and the cheese fries, but a quiet one, two lanes, in the basement of the office building next door to the White House. Now picture the lights over those lanes, and picture somebody deciding they need replacing. That decision has a number. It is 47PH5426C0023, and on the federal government's own spending ledger it reads, in capital letters, exactly as typed: "EEOB BOWLLNG ALLEY LIGHTING PROJECT." Two l's, no i. Hold that typo, because it is the only careless thing in the entire file, and every other line in it is correct to the penny. Here is the penny. The contract was signed on July 28, 2026, by the General Services Administration's…

Continued on the Investigative Reporting page
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“The front page is a ledger with better fonts. Somebody paid, somebody collected, and the flag's up there so you don't ask which one you were.”
— Sal

WANTED Someone to define "groceries." Old-fashioned word. It's a bag with different things in it, apparently. — Classifieds

WANTED An ally, any ally, willing to be billed for a war it refused. Missiles preferred over friends. Ask about our love letters. — Classifieds

FOR SALE One White House ballroom, $600 million, half already on your tab. "Donor-funded." See the fine print. — Classifieds

“A strong edition for people who enjoy being upset. The economy is historic, the deportations are orderly, and the lakes have never been better named. I'm told every story on this page is real, which — frankly, that's the part I'd have fact-checked.”
— Chip
By spring the dog sleeps in the shed. A man finds fewer hens at dusk.
Enoch · the Ownership Desk

The futures fileevery date somebody set, and what was standing there when it arrived · swept 2026-09-16

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The Political Weather

Rain sits over the checkout line again this morning, where 41 percent of registered voters say Democrats would do a better job handling inflation against 34 percent who still side with Republicans, a seven-point edge on the one issue registered voters name most often as the country's top problem, 25 percent, well ahead of the economy and the president's own leadership, tied for second at 13 each. Bring an umbrella and a calculator for the receipt. Back to you, everybody. — Gordy

Economist/YouGov, Oct 19-20, 1,501 registered voters — 41 percent of registered voters say Democrats would do a better job handling inflation, 34 percent say Republicans, 18 percent say no difference, 7 percent not sure; inflation is named the most important problem facing the country by 25 percent of registered voters, the top-ranked answer, ahead of the economy and presidential leadership, tied for second at 13 percent each

The temperature is the day’s poll, not ours: the freshest public number on whatever the country was just asked, and it opens its own sources. The season — the president’s approval, averaged and dated — waits behind the temperature until a new wave lands.

The Crossings

The senate card — five of 14 crossDRGeorgia — D-held. the call: Democratic hold.GANorth Carolina — R-held. the call: Democratic flip.NCNew Hampshire — D-held. the call: Democratic hold.NHAlaska — R-held. the call: Democratic flip.AKOhio (special) — R-held. the call: Democratic flip.OHMichigan — D-held. the call: Democratic hold.MITexas — R-held. the call: Democratic flip.TXMaine — R-held. the call: Democratic flip.MEMinnesota — D-held. the call: Democratic hold.MNKansas — R-held. the call: Republican hold.KSIowa — R-held. the call: Republican hold.IASouth Carolina — R-held. the call: Republican hold.SCNebraska — R-held. the call: Republican hold.NEMississippi — R-held. the call: Republican hold.MSThe house card — seventeen of 23 crossDRNew Jersey 7th — R-held. the call: Democratic flip.California 22nd — R-held. the call: Democratic flip.Virginia 2nd — R-held. the call: Democratic flip.Iowa 3rd — R-held. the call: Democratic flip.Texas 34th — D-held. the call: Democratic hold.Pennsylvania 7th — R-held. the call: Democratic flip.Pennsylvania 10th — R-held. the call: Democratic flip.Washington 3rd — D-held. the call: Democratic hold.Florida 25th — D-held. the call: Democratic hold.Iowa 1st — R-held. the call: Democratic flip.Arizona 6th — R-held. the call: Democratic flip.Colorado 8th — R-held. the call: Democratic flip.Wisconsin 3rd — R-held. the call: Democratic flip.North Carolina 11th — R-held. the call: Democratic flip.Pennsylvania 8th — R-held. the call: Democratic flip.Arizona 1st — R-held. the call: Democratic flip.North Carolina 1st — D-held. the call: Democratic hold.Ohio 7th — R-held. the call: Democratic flip.Ohio 9th — D-held. the call: Democratic hold.Florida 14th — D-held. the call: Democratic hold.New York 17th — R-held. the call: Democratic flip.Michigan 7th — R-held. the call: Democratic flip.Michigan 10th — R-held. the call: Democratic flip.

a dot is a race, colored by who holds the seat today; a dot across the dashed seam is a seat changing hands. The full form: the Politics page.

From each according to his ability, to each according to his needs. Our ability is the link under every claim; your need is to check it. Free, forever. Continued: the serials · the -m edition · the classic front · contact us.