Acting Attorney General Jeffrey A. Rosen Attends Security Briefing at FBI’s Strategic Information and Operations Center on Inauguration Planning and Recent Capitol Attack

Acting Attorney General Jeffrey A. Rosen attended a briefing today at the FBI’s Strategic Information and Operations Center (SIOC) on the recent attack on the Capitol building and law enforcement preparations for the upcoming presidential inauguration. Following the briefing, he addressed the assembled law enforcement partners and thanked them for their efforts.

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    In U.S GAO News
    Modern airplanes are equipped with networks and systems that share data with the pilots, passengers, maintenance crews, other aircraft, and air-traffic controllers in ways that were not previously feasible (see fig. 1). As a result, if avionics systems are not properly protected, they could be at risk of a variety of potential cyberattacks. Vulnerabilities could occur due to (1) not applying modifications (patches) to commercial software, (2) insecure supply chains, (3) malicious software uploads, (4) outdated systems on legacy airplanes, and (5) flight data spoofing. To date, extensive cybersecurity controls have been implemented and there have not been any reports of successful cyberattacks on an airplane's avionics systems. However, the increasing connections between airplanes and other systems, combined with the evolving cyber threat landscape, could lead to increasing risks for future flight safety. Figure 1: Key Systems Connections to Commercial Airplanes The Federal Aviation Administration (FAA) has established a process for the certification and oversight of all US commercial airplanes, including the operation of commercial air carriers (see fig. 2). While FAA recognizes avionics cybersecurity as a potential safety issue for modern commercial airplanes, it has not fully implemented key practices that are necessary to carry out a risk-based cybersecurity oversight program. Specifically, FAA has not (1) assessed its oversight program to determine the priority of avionics cybersecurity risks, (2) developed an avionics cybersecurity training program, (3) issued guidance for independent cybersecurity testing, or (4) included periodic testing as part of its monitoring process. Until FAA strengthens its oversight program, based on assessed risks, it may not be able to ensure it is providing sufficient oversight to guard against evolving cybersecurity risks facing avionics systems in commercial airplanes. Figure 2: Federal Aviation Administration's Certification Process for Commercial Transport Airplanes GAO has previously identified key practices for interagency collaboration that can be used to assess interagency coordination. FAA coordinates with other federal agencies, such as the Departments of Defense (DOD) and Homeland Security (DHS), and with industry to address aviation cybersecurity issues. For example, FAA co-chairs the Aviation Cyber Initiative, a tri-agency forum with DOD and DHS to address cyber risks across the aviation ecosystem. However, FAA's internal coordination activities do not fully reflect GAO's key collaboration practices. FAA has not established a tracking mechanism for monitoring progress on cybersecurity issues that are raised in coordination meetings, and its oversight coordination activities are not supported by dedicated resources within the agency's budget. Until FAA establishes a tracking mechanism for cybersecurity issues, it may be unable to ensure that all issues are appropriately addressed and resolved. Further, until it conducts an avionics cybersecurity risk assessment, it will not be able to effectively prioritize and dedicate resources to ensure that avionics cybersecurity risks are addressed in its oversight program. Avionics systems, which provide weather information, positioning data, and communications, are critical to the safe operation of an airplane. FAA is responsible for overseeing the safety of commercial aviation, including avionics systems. The growing connectivity between airplanes and these systems may present increasing opportunities for cyberattacks on commercial airplanes. GAO was asked to review the FAA's oversight of avionics cybersecurity issues. The objectives of this review were to (1) describe key cybersecurity risks to avionics systems and their potential effects, (2) determine the extent to which FAA oversees the implementation of cybersecurity controls that address identified risks in avionics systems, and (3) assess the extent to which FAA coordinates internally and with other government and industry entities to identify and address cybersecurity risks to avionics systems. To do so, GAO reviewed information on key cybersecurity risks to avionics systems, as reported by major industry representatives as well as key elements of an effective oversight program, and compared FAA's process for overseeing the implementation of cybersecurity controls in avionics systems with these program elements. GAO also reviewed agency documentation and interviewed agency and industry representatives to assess FAA's coordination efforts to address the identified risks. GAO is making six recommendations to FAA to strengthen its avionics cybersecurity oversight program: GAO recommends that FAA conduct a cybersecurity risk assessment of avionics systems cybersecurity within its oversight program to identify the relative priority of avionics cybersecurity risks compared to other safety concerns and develop a plan to address those risks. Based on the assessment of avionics cybersecurity risks, GAO recommends that FAA identify staffing and training needs for agency inspectors specific to avionics cybersecurity, and develop and implement appropriate training to address identified needs. develop and implement guidance for avionics cybersecurity testing of new airplane designs that includes independent testing. review and consider revising its policies and procedures for monitoring the effectiveness of avionics cybersecurity controls in the deployed fleet to include developing procedures for safely conducting independent testing. ensure that avionics cybersecurity issues are appropriately tracked and resolved when coordinating among internal stakeholders. review and consider the extent to which oversight resources should be committed to avionics cybersecurity. FAA concurred with five out of six GAO recommendations. FAA did not concur with the recommendation to consider revising its policies and procedures for periodic independent testing. GAO clarified this recommendation to emphasize that FAA safely conduct such testing as part of its ongoing monitoring of airplane safety. For more information, contact Nick Marinos at (202) 512-9342 or MarinosN@gao.gov, or Heather Krause at (202) 512-2834 or KrauseH@gao.gov.
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    In U.S GAO News
    What GAO Found Since GAO's April 2020 report on the status of the National Science Foundation's (NSF) major facilities projects, the Large Hadron Collider High Luminosity Upgrade program began construction, and it along with the four other major facilities projects in construction (see figure), have weathered schedule delays associated with the COVID-19 pandemic. To partially account for increased costs associated with the pandemic, such as the cost of paying project staff while work is paused, NSF has authorized $38.9 million in total project cost increases to the award recipients constructing three of the five projects: $18.9 million for the Daniel K. Inouye Solar Telescope, $10.0 million for the Vera C. Rubin Observatory, and $10.0 million for Regional Class Research Vessels. Because the pandemic is ongoing and its full effects are not yet known, NSF expects to make further adjustments to the cost and schedule of all five major projects in construction. Design work on an additional major facility project continued without significant interruption from the pandemic. Further, NSF made awards to begin the agency's first three mid-scale research infrastructure projects. National Science Foundation Major Facilities Projects in Construction NSF has fully implemented GAO's prior recommendation on information sharing among award recipients and has drafted guidance or taken other steps towards addressing GAO's three remaining recommendations. To enhance information sharing among award recipients, NSF added a section to its terms and conditions in its major facilities agreements that encourages awardees to share information among awardees and participate in a knowledge management program. Why GAO Did This Study NSF supports the design, construction, and operations of science and engineering research infrastructure such as telescopes and research vessels. These projects include major facilities that cost over $100 million to construct or acquire, and mid-scale research infrastructure projects. Over the past 5 fiscal years, NSF has received over $1 billion in appropriations for these projects. Prior GAO reports reviewed NSF's oversight of the projects, its cost estimating and schedule policies, and the project management expertise of its oversight workforce. Senate Report 115-275, Senate Report 114-239, and House Report 114-605 included provisions for GAO to review and report annually on projects funded from NSF's Major Research Equipment and Facilities Construction account. This report, the fourth, examines (1) the cost and schedule performance of NSF's ongoing major facilities and mid-scale research infrastructure projects and (2) the extent to which NSF has implemented prior GAO recommendations related to its management of major facilities. GAO reviewed NSF and award recipient documents for the projects. GAO examined policies and procedures to identify efforts to implement recommendations and interviewed NSF officials for clarifying information.
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    In 2009, the Secretary of the Navy set goals to reduce fuel consumption and, 2 years later, initiated a program to install Hybrid Electric Drive (HED) systems on its fleet of Arleigh Burke class (DDG 51 Flight IIA) destroyers. The HED system draws surplus power from the ship's electric system and uses it to propel the ship. This allows the crew to turn off the propulsion engines and save fuel. Since 2011, Navy officials told us that they have spent over $100 million on the development, purchase, and upgrade of six HED systems. In October 2018, the Navy completed installation of one of the systems on the USS Truxtun (DDG 103). However, the Navy has yet to install the remaining five HED systems and now plans to use them to support another research effort. The Navy issued a January 2020 report to Congress on the HED system installed on the USS Truxtun, but did not include some requested information. For example, while the report included performance information from operations on board the USS Truxtun, it did not include sufficient information to determine the overall performance of the HED system. A comprehensive test and evaluation could have assessed the system's performance, reliability, and cyber survivability to inform program decision-making. Further, the report did not include a summary of planned investment that includes: an assessment of the costs and benefits of the HED system, or a projection of the funding needed to execute the program. The Navy stated that it did not include a summary of the planned investments in the report because the HED program was not included in the President's fiscal year 2020 budget and also due to the need for additional HED data. However, Congress appropriated $35 million in funding for the HED program in 2020, which was available to support ship installation of the five previously purchased HEDs. The Navy stated that it can only use a small portion of this funding before it expires in September 2022 since the systems cannot be upgraded and incorporated into a ship's maintenance schedule in the next 3 years. In summer 2020, Navy requirements officials informed GAO and Congress that they plan to suspend the HED program and send the five surplus HED systems to support research into a new electric motor, known as Propulsion Derived Ship Service (PDSS). Navy requirements officials identified several reasons for suspending the HED program, but these reasons differ from information GAO obtained during the course of this review. For example: Navy officials stated that it is expensive to maintain the HED system. However, the commanding officer and crew of the USS Truxtun and senior Navy engineers stated that the system requires little maintenance. Navy officials also stated that the HED is not used very often in operations. According to the Navy's January 2020 report, the system was designed for low-speed operations (speed up to 11 knots), which comprise more than one-third of a typical DDGs operating profile. GAO did not assess the Navy's decision to use the HED systems for PDSS research because the Navy did not have documentation regarding the requirements, testing, schedule, or costs of the PDSS effort. GAO could not determine the merits of suspending the HED program and using the other five HED systems for the PDSS effort because the Navy has yet to complete analysis that determines the costs, benefits, and performance necessary to support such a decision. If the Navy completes a further assessment—which has been requested by Congress—it could provide the information necessary to inform future decisions about the HED program. This report assesses the Navy's HED program. Senate Report 115-262 accompanying the John S. McCain National Defense Authorization Act for Fiscal Year 2019 asked the Navy to submit a report on the HED system installed on the USS Truxtun. GAO was asked to review the Navy's report and the Navy's recent decision to suspend the HED program to pursue the PDSS research project. This report (1) examines the extent to which the Navy's report on the USS Truxtun included information regarding the assessment areas as requested by Congress; and (2) describes the Navy's decision to suspend the HED program and use the HED systems for the PDSS research effort. To conduct this work, GAO reviewed the Navy's 2020 report on the HED system, analyzed data and documentation the Navy used to guide investments, and assessed HED performance information. GAO also interviewed relevant Navy officials, such as the commanding officer and other senior crew of the USS Truxtun, and Navy engineers. GAO is not making any recommendations. For more information, contact Shelby S. Oakley at (202) 512-4841 or oakleys@gao.gov.
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    Substance use disorders (SUD)—the recurrent use of alcohol or illicit drugs causing significant impairment—affected about 19.3 million adults in the United States in 2018, according to the Substance Abuse and Mental Health Services Administration. State Medicaid programs have the option to cover services offered by peer providers—individuals who use their own lived experience recovering from SUD to support others in recovery. GAO's review of Medicaid and CHIP Payment and Access Commission data found that, in 2018, 37 states covered peer support services for adults with SUDs in their Medicaid programs. Medicaid Coverage of Peer Support Services for Adults with Substance Use Disorders, 2018 Officials from the three states GAO reviewed—Colorado, Missouri, and Oregon—reported that their Medicaid programs offered peer support services as a complement, rather than as an alternative, to clinical treatment for SUD. Missouri officials said that peer providers did not maintain separate caseloads and were part of treatment teams, working in conjunction with doctors and other clinical staff. Similarly, officials in Colorado and Oregon said peer support services were only offered as part of a treatment plan. State officials reported that peer support services could be offered as an alternative to clinical treatment outside of Medicaid using state or grant funding. SUD treatment can help individuals reduce or stop substance use and improve their quality of life. In 2007, the Centers for Medicare & Medicaid Services recognized that peer providers could be an important component of effective SUD treatment, and provided guidance to states on how to cover peer support services in their Medicaid programs. However, states have flexibility in how they design and implement their Medicaid programs, and coverage for peer support services is an optional benefit. The Substance Use-Disorder Prevention that Promotes Opioid Recovery and Treatment for Patients and Communities Act included a provision for GAO to report on peer support services under Medicaid. This report describes, among other objectives, the extent to which state Medicaid programs covered peer support services for adult beneficiaries with SUDs nationwide, and how selected state Medicaid programs offered peer support services for adult beneficiaries with SUDs. GAO obtained state-by-state data from the Medicaid and CHIP Payment and Access Commission on 2018 Medicaid coverage of peer support services. GAO also reviewed information and interviewed officials from a nongeneralizable sample of three states, which GAO selected for a number of reasons, including to obtain variation in delivery systems used. The Department of Health and Human Services provided technical comments on a draft of this report, which GAO incorporated as appropriate. For more information, contact Carolyn L. Yocom at (202) 512-7114 or yocomc@gao.gov.
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  • Cybersecurity: Federal Agencies Need to Implement Recommendations to Manage Supply Chain Risks
    In U.S GAO News
    What GAO Found Federal agencies continue to face software supply chain threats. In December 2020, the Department of Homeland Security's Cybersecurity and Infrastructure Security Agency issued an emergency directive requiring agencies to take action regarding a threat actor that had been observed leveraging a software supply chain compromise of a widely used enterprise network management software suite—SolarWinds Orion. Subsequently, the National Security Council staff formed a Cyber Unified Coordination Group to coordinate the government response to the cyberattack. The group took a number of steps, including gathering intelligence and developing tools and guidance, to help organizations identify and remove the threat. During the same month that the SolarWinds compromise was discovered, GAO reported that none of 23 civilian agencies had fully implemented selected foundational practices for managing information and communication technology (ICT) supply chain risks—known as supply chain risk management (SCRM) (see figure). Twenty-three Civilian Agencies' Implementation of Information and Communication Technology (ICT) Supply Chain Risk Management (SCRM) Practices GAO stressed that, as a result of not fully implementing the foundational practices, the agencies were at a greater risk that malicious actors could exploit vulnerabilities in the ICT supply chain, causing disruptions to mission operations, harm to individuals, or theft of intellectual property. Accordingly, GAO recommended that each of the 23 agencies fully implement these foundational practices. In May 2021, GAO received updates from six of the 23 agencies regarding actions taken or planned to address its recommendations. However, none of the agencies had fully implemented the recommendations. Until they do so, agencies will be limited in their ability to effectively address supply chain risks across their organizations. Why GAO Did This Study Federal agencies rely extensively on ICT products and services (e.g., computing systems, software, and networks) to carry out their operations. However, agencies face numerous ICT supply chain risks, including threats posed by malicious actors who may exploit vulnerabilities in the supply chain and, thus, compromise the confidentiality, integrity, or availability of an organization's systems and the information they contain. Recent events involving a software supply chain compromise of SolarWinds Orion, a network management software suite, and the shutdown of a major U.S. fuel pipeline due to a cyberattack highlight the significance of these threats. GAO was asked to testify on federal agencies' efforts to manage ICT supply chain risks. Specifically, GAO (1) describes the federal government's actions in response to the compromise of SolarWinds and (2) summarizes its prior report on the extent to which federal agencies implemented foundational ICT supply chain risk management practices. To do so, GAO reviewed its previously published reports and related information. GAO has ongoing work examining federal agencies' responses to SolarWinds and plans to issue a report on this in fall 2021.
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  • Medicare Severe Wound Care: Spending Declines May Reflect Site of Care Changes; Limited Information Is Available on Quality
    In U.S GAO News
    GAO's analysis of Department of Health and Human Services (HHS) Centers for Medicare & Medicaid Services (CMS) data show that in fiscal year 2018, 287,547 Medicare fee-for-service beneficiaries had inpatient stays that included care for severe wounds. These wounds include those where the base of the wound is covered by dead tissue or non-healing surgical wounds. About 73 percent of the inpatient stays occurred in acute care hospitals (ACH), and a smaller percentage of stays occurred in post-acute care facilities. Specifically, about 16 percent of stays were at skilled nursing facilities (SNF), and about 7 percent were at long-term care hospitals (LTCH). CMS data show that Medicare spending on stays for severe wound care was $2.01 billion in fiscal year 2018, representing a decline of about 2 percent from fiscal year 2016, when spending was about $2.06 billion. Spending declined as a result of decreases in both the total number of these stays, as well as spending per stay, which both decreased by about 1 percent. The decrease in per stay spending was likely driven, in part, by a change in where beneficiaries received care. CMS data show fewer severe wound care stays in LTCHs, which tend to be paid higher payment rates. At the same time, more severe wound care stays were at two other types of facilities that tend to be paid lower payment rates: ACHs and inpatient rehabilitation facilities. GAO's analysis of CMS data also show that, while the number of LTCHs that billed Medicare for severe wound care decreased by about 7 percent from fiscal years 2016 to 2018, Medicare beneficiaries continued to have access to other severe wound care providers. For example, CMS data show that most beneficiaries resided within 10 miles of an ACH or SNF that provided severe wound care in fiscal year 2018. Figure: Percentage of Medicare Fee-for-Service Beneficiaries Residing within 10 Miles of a Health Care Facility That Provided Any Severe Wound Care, by Facility Type, Fiscal Year 2018 Note: The “other” category includes facilities such as psychiatric hospitals or units. There is limited information on how or whether the decrease in LTCH care for severe wounds may have affected the quality of severe wound care Medicare beneficiaries receive. For example, CMS collects information on the percentage of patients with new or worsened pressure ulcers at post-acute care facilities, but it does not measure the quality of care they receive. Medicare beneficiaries with serious health conditions, such as strokes, are prone to developing severe wounds due to complications that often lead to immobility and prolonged pressure on the skin. These beneficiaries may require a long-term inpatient stay at an ACH or a post-acute care facility, such as an LTCH. LTCHs treat patients who require care for longer than 25 days, on average. In 2018, LTCHs represented about $4.2 billion in Medicare expenditures. Prior to fiscal year 2016, LTCHs received a higher payment rate for treating Medicare beneficiaries than ACHs. Beginning in fiscal year 2016, a dual payment system was phased in that paid LTCHs a rate similar to ACHs for some beneficiaries and a higher rate for beneficiaries that met certain criteria. As this payment system has moved from partial to full implementation, lawmakers had questions about how it may affect beneficiaries' severe wound care. The 21st Century Cures Act included a provision for GAO to review severe wound care provided to Medicare beneficiaries. This report describes facilities where Medicare beneficiaries received severe wound care, Medicare severe wound care spending, and what is known about the dual payment system's effect on access and quality. GAO analyzed Medicare severe wound care access and spending data for fiscal years 2016 and 2018 (the most recent data available); reviewed reports; and interviewed CMS officials, researchers, and national wound care stakeholders. HHS provided technical comments on a draft of this report, which were incorporated as appropriate. For more information, contact James Cosgrove at (202) 512-7114 or cosgrovej@gao.gov.
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  • Government Auditing Standards: 2018 Revision Technical Update April 2021 (Supersedes GAO-18-568G)
    In U.S GAO News
    The Yellow Book provides standards and guidance for auditors and audit organizations, outlining the requirements for audit reports, professional qualifications for auditors, and audit organization quality control. Auditors of federal, state, and local government programs use these standards to perform their audits and produce their reports. Effective Date The 2018 revision of the Yellow Book is effective for financial audits, attestation engagements, and reviews of financial statements for periods ending on or after June 30, 2020, and for performance audits beginning on or after July 1, 2019. Early implementation is not permitted. The technical updates to the 2018 revision of the Yellow Book are effective upon issuance. Revision Process Yellow Book revisions undergo an extensive, deliberative process, including public comments and input from the Comptroller General's Advisory Council on Government Auditing Standards. GAO considered all comments and input in finalizing revisions to the standards. For more information, contact James R. Dalkin at (202) 512-9535 or yellowbook@gao.gov. Visit our Yellow Book website for more information on applicable updates and alerts.
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  • Military Housing: Actions Needed to Improve the Process for Setting Allowances for Servicemembers and Calculating Payments for Privatized Housing Projects
    In U.S GAO News
    The Department of Defense (DOD) has established a process to determine basic allowance for housing (BAH) rates, which help cover the cost of suitable housing in the private sector for servicemembers. However, DOD has not always collected rental data on the minimum number of rental units needed to estimate the total housing cost for certain locations and housing types. GAO analysis found that 44 percent (788 of 1,806) of locations and housing types had fewer than the minimum sample-size target. Until DOD develops ways to increase its sample size, it will risk providing housing cost compensation that does not accurately represent the cost of suitable housing for servicemembers. DOD followed congressional requirements for calculating BAH reductions and payments to privatized housing projects. However, while the 2019 congressionally mandated payments lessened the financial effects of BAH reductions, as intended, they did not do so commensurate with the amount of the BAH reduction. GAO found that privatized housing projects received payments that were either over or under the amount of revenue lost from reductions made to BAH, in some cases by $1 million or more. (see figure) Number of Privatized Housing Projects and Amounts That Congressionally Mandated Payments Were Above or Below the Basic Allowance for Housing (BAH) Reduction Estimate (in 2019) These distortions occurred because the legal requirements for calculating the BAH reduction and the congressionally mandated payments differ. Specifically, the law requires that the BAH reduction be a set dollar amount, regardless of location, while payments to privatized housing projects are required to differ by location. This required method of calculating the BAH reduction amounts is consistent with how prior reductions were calculated. According to DOD, BAH rates were reduced so that servicemembers share a portion of housing costs, and that reduction amount was the same for servicemembers with the same pay grade and dependency status, regardless of location. Until Congress takes steps to ensure congressionally mandated payment calculations are consistent with how BAH reductions are calculated, some privatized housing projects will continue to receive more or less than was intended. DOD spent about $20 billion in fiscal year 2019 on BAH—often one of the largest components of military pay. BAH is designed to cover a portion of servicemembers' housing rental and utility costs in the private sector. Starting in 2015, DOD reduced BAH rates so that servicemembers share a portion of housing costs. The majority of servicemembers rely on the civilian housing market, while others rely on government housing or privatized housing projects. These projects rely on BAH as a key revenue source. In 2018-2020, Congress required DOD to make payments to these projects to help offset the BAH reduction. Senate Report 116-48 included a provision for GAO to review DOD's BAH process. This report evaluates, among other things, the extent to which (1) DOD established a process to determine BAH and (2) DOD's congressionally mandated payments to projects lessened the effects of BAH reductions. To conduct this work, GAO reviewed relevant guidance and other documents, analyzed key data, and interviewed cognizant DOD officials. GAO is making a matter for congressional consideration to revise statutory language to ensure payments to privatized housing projects are consistent with BAH reductions. GAO is also making three recommendations, including that DOD review its sampling methodology to increase sample size. DOD concurred with two recommendations. DOD also partially concurred with one recommendation, which GAO continues to believe is valid, as discussed in the report. For more information, contact Elizabeth A. Field at (202) 512-2775 or fielde1@gao.gov.
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  • Statement by Pamela Karlan, Principal Deputy Assistant Attorney General of the Civil Rights Division
    In Crime News
    “The United States is currently facing unprecedented challenges, some of which are fueling increased bigotry and hatred. Hate crimes cannot be tolerated in our country, and the Department of Justice will continue to put all necessary resources toward protecting our neighbors and our communities from these heinous acts.
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  • Secretary Blinken’s Call with Algerian Foreign Minister Boukadoum
    In Crime Control and Security News
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    In Crime Control and Security News
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    In Space
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  • Taiwan Company Pleads Guilty to Trade Secret Theft in Criminal Case Involving PRC State-Owned Company
    In Crime News
    The Department of Justice today announced that United Microelectronics Corporation, Inc. (UMC), a Taiwan semiconductor foundry, pleaded guilty to criminal trade secret theft and was sentenced to pay a $60 million fine, in exchange for its agreement to cooperate with the government in the investigation and prosecution of its co-defendant, a Chinese state-owned-enterprise.
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  • Canadian National Charged with Alien Smuggling Conspiracy and Attempting to Bring Aliens to the United States
    In Crime News
    Cooperation efforts between United States and Turks and Caicos Islands law enforcement authorities culminated in today’s extradition to the United States of a Canadian national who has been charged with alien smuggling offenses.
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  • Low-Income Workers: Millions of Full-Time Workers in the Private Sector Rely on Federal Health Care and Food Assistance Programs
    In U.S GAO News
    The 12 million wage-earning adults (ages 19 to 64) enrolled in Medicaid—a joint federal-state program that finances health care for low-income individuals—and the 9 million wage-earning adults in households receiving food assistance from the federal Supplemental Nutrition Assistance Program (SNAP) shared a range of common labor characteristics. For example, approximately 70 percent of adult wage earners in both programs worked full-time hours (i.e., 35 hours or more) on a weekly basis and about one-half of them worked full-time hours annually (see figure). In addition, 90 percent of wage-earning adults participating in each program worked in the private sector (compared to 81 percent of nonparticipants) and 72 percent worked in one of five industries, according to GAO’s analysis of program participation data included in the Census Bureau’s 2019 Current Population Survey. When compared to adult wage earners not participating in the programs, wage-earning adult Medicaid enrollees and SNAP recipients in the private sector were more likely to work in the leisure and hospitality industry and in food service and food preparation occupations. Estimated Percentage of Wage-Earning Adult Medicaid Enrollees and Supplemental Nutrition Assistance Program (SNAP) Recipients Working at Least 35 Hours per Week, by Number of Weeks Worked in 2018 GAO’s analysis of February 2020 program data from 15 agencies—six Medicaid agencies and nine SNAP agencies—across 11 states shows that a majority of working adult Medicaid enrollees and SNAP recipients in these states worked for private sector employers. GAO’s analysis also shows that the percentage of working adult Medicaid enrollees and SNAP recipients working for any one employer did not exceed 4 percent in any state that provided data. Most working adults in the programs worked for private sector employers concentrated in certain industries, including restaurants, department stores, and grocery stores. Smaller percentages of working adults in each program in these states worked outside the private sector. For example, less than 10 percent worked for public sector employers, such as state governments, the U.S. Postal Service, or public universities; others worked for nonprofit organizations, such as charities, hospitals, and health care networks, or were self-employed. In October 2020, GAO issued a report entitled Federal Social Safety Net Programs Millions of Full-Time Workers Rely on Federal Health Care and Food Assistance Programs (GAO-20-45.) This testimony summarizes the findings of that report, which examined (1) what is known about the labor characteristics of wage-earning adult Medicaid enrollees and SNAP recipients, and (2) what is known about where wage-earning adult Medicaid enrollees and SNAP recipients work. To answer these questions, GAO analyzed recent Census Bureau data on the labor characteristics of working adults in the two programs. GAO also analyzed recent (Feb. 2020) non-generalizable data on the employers of working adult Medicaid enrollees and SNAP recipients obtained from 15 state agencies across 11 states. GAO selected state agencies that (1) collected, verified, and updated the names of Medicaid enrollees’ and SNAP recipients’ employers; and (2) could extract reliable data. GAO made no recommendations. For more information, contact Cindy S. Brown Barnes at (202) 512-7215 or brownbarnesc@gao.gov.  
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  • Marketing Company Agrees to Pay $150 Million for Facilitating Elder Fraud Schemes
    In Crime News
    Epsilon Data Management LLC (Epsilon), one of the largest marketing companies in the world, has entered into a settlement with the Department of Justice to resolve a criminal charge for selling millions of Americans’ information to perpetrators of elder fraud schemes.
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