HHS Shifting $2 Billion to UAC’s Confirms it is a Crisis

Shuffling money to cover for a self-made crisis at the border…..remember President Trump was excoriated for doing the same thing but this is different?

So, we sacrifice the national stockpile for pandemics for the border insurgency? This is $ billion but does that only cover what has already been spent or for the next month or so…inquiring minds want to know the full accounting..

*** The Trump administration is currently housing 12,800 ...

Politico: The Department of Health and Human Services has diverted more than $2 billion meant for other health initiatives toward covering the cost of caring for unaccompanied immigrant children, as the Biden administration grapples with a record influx of migrants on the southern border.

The redirected funds include $850 million that Congress originally allocated to rebuild the nation’s Strategic National Stockpile, the emergency medical reserve strained by the Covid-19 response. Another $850 million is being taken from a pot intended to help expand coronavirus testing, according to three people with knowledge of the matter.

The reshuffling, which HHS detailed to congressional appropriators in notices over the last two months, illustrates the extraordinary financial toll that sheltering more than 20,000 unaccompanied children has taken on the department so far this year, as it scrambled to open emergency housing and add staff and services across the country.

It also could open the administration up to further scrutiny over a border strategy that has dogged President Joe Biden for months, as administration officials struggle to stem the flow of tens of thousands of unaccompanied children into the U.S.

On its own, the $2.13 billion in diverted money exceeds the government’s annual budget for the unaccompanied children program in each of the last two fiscal years. It is also far above the roughly half-billion dollars that the Trump administration shifted in 2018 toward sheltering a migrant child population that had swelled as a result of its strict immigration policies, including separating children from adults at the border.

In addition to transferring money from the Strategic National Stockpile and Covid-19 testing, HHS also has pulled roughly $436 million from a range of existing health initiatives across the department.

“They’ve been in a situation of needing to very rapidly expand capacity, and emergency capacity is much more expensive,” said Mark Greenberg, a senior fellow at the Migration Policy Institute who led HHS’ Administration for Children and Families from 2013 to 2015. “You can’t just say there’s going to be a waiting list or we’re going to shut off intake. There’s literally not a choice.”

HHS spokesperson Mark Weber told POLITICO that the department has worked closely with the Office of Management and Budget to find ways to keep its unaccompanied minor operation funded in the face of rising costs.

“All options are on the table,” he said, adding that HHS has traditionally sought to pull funding from parts of the department where the money is not immediately needed. “This program has relied, year after year, on the transfer of funds.”

Health secretary Xavier Becerra has the ability to shift money among programs within the sprawling department so long as he notifies Congress, an authority that his predecessors have often resorted to during past influxes of migrant children.

But these transfers come as HHS has publicly sought to pump new funds into the Strategic National Stockpile and Covid-19 testing efforts by emphasizing the critical role that both play in the pandemic response and future preparedness efforts.

“The fight against Covid-19 is not yet over,” Becerra testified to a House panel on Wednesday in defense of a budget request that would allocate $905 million for the stockpile. “Even as HHS works to beat this pandemic, we are also preparing for the next public health crisis.”

Becerra later stressed the need to “make sure we’ve got the resources” to replenish the Strategic National Stockpile, which came under scrutiny early in the pandemic after officials discovered it lacked anywhere near the amount of protective equipment and medical supplies needed to respond to the crisis.

“We’ve learned that this is going to be a critical component of being able to respond adequately and quickly to any future health care crisis,” he told Rep. Debbie Dingell (D-Mich.).

In another exchange, Rep. Markwayne Mullin (R-Okla.) repeatedly pressed Becerra over whether HHS would benefit from Congress investing more in other parts of its operation, rather than funding a further expansion of Covid testing. Mullin specifically cited the record numbers of migrant children arriving at the border.

But Becerra batted that suggestion away, telling him that “we have to continue an aggressive testing strategy.”

“We have to continue to make investments to prevent the spread of Covid and its variants,” he said.

Beyond taking funding from the stockpile and Covid testing, Weber could not immediately say what other areas within HHS have been affected. After publication of this article, HHS insisted that additional public health funding Congress allocated as part of a Covid aid bill passed in February could be steered toward the stockpile and supplementing its pandemic response.

Still, funneling money away from existing HHS programs could raise fears of undermining other critical health initiatives and irritate the public health groups and lawmakers who advocate for the funding every year.

The Trump administration faced withering criticism in 2018 for transferring hundreds of millions of dollars meant for biomedical research, HIV/AIDS services and other purposes to cover the expenses tied to an unaccompanied child population that would peak close to 14,000 that year.

That scrutiny was driven in part by bipartisan disapproval over then-President Donald Trump’s “zero tolerance” policy that separated children from their parents, which left HHS with responsibility for carrying out a costly reunification effort.

The Biden administration, by contrast, has moved to unwind several of the Trump era’s most restrictive immigration policies. Yet as it confronts the need to care for an even greater number of migrant children, health groups have bristled at the prospect it could take away from public health priorities even as the U.S. combats a pandemic.

“It is concerning any time funds need to be diverted from their originally intended purpose because of limited resources,” said Erin Morton, executive director of the Coalition for Health Funding. “We have consistently asked our public health system to do more with less and we have underfunded essential programs that today are critical to addressing the multitude of challenges facing the country.”

The transfers could also stretch funding for other programs within HHS’ Administration for Children and Families, which oversees various social services including child care and support for newly arrived refugees.

Biden cited concerns about the strain on the HHS refugee office involved with both aiding refugees and caring for unaccompanied children in his initial refusal to raise the refugee admissions cap from historic lows — a decision he later reversed in the face of swift blowback.

“Obviously this will have a significant impact on the ability of ORR to serve refugees and asylees,” Bob Carey, who ran the Office of Refugee Resettlement from 2015 to 2017, said of the potential need to shift more funding toward sheltering migrant children.

Still, Carey and others defended the transfers as unfortunate yet necessary, and a consequence of the urgent need to get rising numbers of unaccompanied children out of jail-like facilities at the border.

After effectively sealing the southern border last year, the Trump administration never expanded its shelter capacity to the level that HHS has pegged as critical to its preparedness, Greenberg said, leaving the department shorthanded when Biden resumed allowing migrant children into the country.

The pandemic further handicapped HHS, halving its number of available beds due to the need to follow Covid-19 precautions. That forced a scramble to build out a dozen emergency shelters that have historically, on average, cost more than double the amount per day to house each child than it does in licensed facilities.

More than half the migrant children in HHS custody are now housed in emergency shelters, Weber confirmed. And implementing pandemic measures like testing and quarantine areas in shelters has cost HHS at least $850 million in additional expenses alone.

HHS in recent months has additionally agreed to hundreds of millions of dollars in no-bid contracts with an array of emergency response and logistics companies to build out services and staff at the emergency shelters.

“If they had started this year with 16,000 beds instead of 8,000, they could have managed in February and had time to determine how in an orderly way to expand capacity for the very large numbers in March,” Greenberg said. “Fundamentally, it’s this mix of: numbers were greater than expected, capacity was less than needed and there was tremendous pressure to alleviate crowding at [the border].”

Those dynamics are expected to hold for at least the next couple months, as hundreds of new unaccompanied minors arrive at the border daily and are transferred into the health department’s care.

And with no indication so far that the Biden administration will seek new emergency border aid from Congress, that means HHS’ expenses are only likely to balloon further, forcing additional costly transfers within the department.

“It’s going to be expensive,” Carey said. “I can’t think of a situation that’s more complex than this.”

 

 

Organized Crime in San Francisco Forces Retailers to Close

It all escalated with Prop 47…you remember that right? Going back to 2019, in part from the Federalist:

Rachel Michelin, who currently serves as President of the California Retailers Association, explained to Fox News the crude savviness of the latest generation of shoplifters. “[Shoplifters] know what they’re doing. They will bring in calculators and get all the way up to the $950 limit.” She continued. “One person will go into a store, fill up their backpack, come out, dump it out and go right back in and do it all over again.”

Retailers tried to work through the shoplifting with higher training for employees and more security systems and officers…due to the volume, the retailers just lost the battle. Residents in the area of San Francisco and actually around the state live in lawlessness….

No one is above the law unless it is the woke crowd and there is a value threshold….

*** Slide 1 of 3: Walgreens throughout Sam Francisco have been hit hard during the pandemic.

© Lea Suzuki/The Chronicle 2020// Mallory Moench is a San Francisco Chronicle staff writer

That changed in March when the Walgreens, ravaged by shoplifting, closed. Susoeff, 77, who sometimes uses a cane, now goes six blocks for medication and other necessities.

“It’s terrible,” he said. On his last visit before the store closed, even beef jerky was behind lock and key. A CVS nearby shuttered in 2019, with similar reports of rampant shoplifting.

“I don’t blame them for closing,” Susoeff said.

Last year, burglaries increased in most San Francisco neighborhoods. Shoplifting decreased under pandemic lockdown and dropped slightly the year before, but incidents are often underreported and have become more violent and brazen, police said.

Retailers attributed a majority of losses to professional thieves instead of opportunistic shoplifters who may be driven by poverty, with one CVS leader calling San Francisco a hub of organized retail crime. Losses have shuttered drugstores providing vital services, even more critical during the pandemic as some stores give out vaccines.

“This has been out of control,” said Supervisor Ahsha Safaí, who held a hearing Thursday with retailers, police, the district attorney and probation departments. “People are scared to go into these stores — seniors, people with disabilities, children. It’s just happening brazenly. We can’t just as a city throw up our hands and say this is OK. We have to come up with solutions.”

The cost of business and shoplifting led Walgreens to shut 17 locations in San Francisco in the past five years — an “unpopular and difficult decision,” Jason Cunningham, regional vice president for pharmacy and retail operations in California and Hawaii, said at the hearing. The company still has 53 stores in the city.

Theft in Walgreens’ San Francisco stores is four times the average for stores elsewhere in the country, and the chain spends 35 times more on security guards in the city than elsewhere, Cunningham said.

At CVS, 42% of losses in the Bay Area came from 12 stores in San Francisco, which are only 8% of the market share, Brendan Dugan, director of organized retail crime and corporate investigations, said at the hearing.

CVS and Walgreens said they train employees to be engaged and visible to prevent theft, but to not confront thieves directly when it could turn violent. CVS security guards in San Francisco have been assaulted, especially at the now-closed Seventh and Market streets location, Dugan said. Some businesses instead hire costly off-duty police officers.

Although the majority of CVS shoplifting incidents in the city are by opportunists, Dugan said, professional crime accounts for 85% of the company’s dollar losses. He said San Francisco is one of the “epicenters” of organized retail crime, pointing to an $8 million state bust in the Bay Area last year.

Officials agreed that different responses were needed depending on why someone was committing a crime. San Francisco Deputy Public Defender Doug Welch called in to the hearing to say his clients charged with shoplifting are not part of organized crime, but are homeless or struggling with substance abuse and need more services.

The San Francisco police burglary unit focuses on investigating serial shoplifters, especially if they’re violent, police said. Beat officers patrol known shoplifting areas. Last year, around 31% of shoplifting incidents resulted in arrest, a percentage that declined over the past couple years, police said.

A statement from Safeway read at Thursday’s hearing blamed Proposition 47, which lowered penalties for thefts under $950, for “dramatic increases” in shoplifting losses. Safaí said he is proud of Prop. 47 and supports criminal justice reform and rehabilitation, but also urges prosecution for organized crime and community ambassadors to prevent opportunistic shoplifting.

Professional shoplifters can work the system by stealing items under the threshold from one store and hitting several retailers in the same day. To prosecute, the district attorney has pursued aggregated charges for multiple petty theft incidents by the same person, such as a recent case of stolen scooters. Police said a person could also be charged with possession of stolen property worth more than $950.

As officials try to stave off crime, San Franciscans suffer from shuttered stores. Residents tried to save the Walgreens at Bush and Larkin in March, circulating a petition and arguing that the next closest store was not handicapped-accessible.

“This has become a lifeline for many seniors, people with disabilities, and low income residents who cannot go further out to other stores to get what they need,” the petition said.

The store still wound up closing.

 

 

Looks Like Law Enforcement Actually Shutdown DarkSide

A big hat tip to the work of law enforcement but which agency remains unknown at this point.

Shutting down the servers of DarkSide is a great achievement but not before there were other victims such as Toshiba.

A Toshiba Corp (6502.T) unit said it was hacked by the DarkSide ransomware group, overshadowing an announcement of a strategic review for the Japanese conglomerate under pressure from activist shareholders to seek out suitors.

Toshiba Tec Corp (6588.T), which makes products such as bar code printers and is valued at $2.3 billion, was hacked by DarkSide – the group widely believed to be behind the recent Colonial Pipeline attack, its French subsidiary said.

From Krebs:

The DarkSide ransomware affiliate program responsible for the six-day outage at Colonial Pipeline this week that led to fuel shortages and price spikes across the country is running for the hills. The crime gang announced it was closing up shop after its servers were seized and someone drained the cryptocurrency from an account the group uses to pay affiliates.

“Servers were seized (country not named), money of advertisers and founders was transferred to an unknown account,” reads a message from a cybercrime forum reposted to the Russian OSINT Telegram channel.

“A few hours ago, we lost access to the public part of our infrastructure,” the message continues, explaining the outage affected its victim shaming blog where stolen data is published from victims who refuse to pay a ransom.

“Hosting support, apart from information ‘at the request of law enforcement agencies,’ does not provide any other information,” the DarkSide admin says. “Also, a few hours after the withdrawal, funds from the payment server (ours and clients’) were withdrawn to an unknown address.”

DarkSide organizers also said they were releasing decryption tools for all of the companies that have been ransomed but which haven’t yet paid.

“After that, you will be free to communicate with them wherever you want in any way you want,” the instructions read.

The DarkSide message includes passages apparently penned by a leader of the REvil ransomware-as-a-service platform. This is interesting because security experts have posited that many of DarkSide’s core members are closely tied to the REvil gang.

The REvil representative said its program was introducing new restrictions on the kinds of organizations that affiliates could hold for ransom, and that henceforth it would be forbidden to attack those in the “social sector” (defined as healthcare and educational institutions) and organizations in the “gov-sector” (state) of any country. Affiliates also will be required to get approval before infecting victims.

The new restrictions came as some Russian cybercrime forums began distancing themselves from ransomware operations altogether. On Thursday, the administrator of the popular Russian forum XSS announced the community would no longer allow discussion threads about ransomware moneymaking programs.

“There’s too much publicity,” the XSS administrator explained. “Ransomware has gathered a critical mass of nonsense, bullshit, hype, and fuss around it. The word ‘ransomware’ has been put on a par with a number of unpleasant phenomena, such as geopolitical tensions, extortion, and government-backed hacks. This word has become dangerous and toxic.”

In a blog post on the DarkSide closure, cyber intelligence firm Intel 471 said it believes all of these actions can be tied directly to the reaction related to the high-profile ransomware attacks covered by the media this week.

“However, a strong caveat should be applied to these developments: it’s likely that these ransomware operators are trying to retreat from the spotlight more than suddenly discovering the error of their ways,” Intel 471 wrote. “A number of the operators will most likely operate in their own closed-knit groups, resurfacing under new names and updated ransomware variants. Additionally, the operators will have to find a new way to ‘wash’ the cryptocurrency they earn from ransoms. Intel 471 has observed that BitMix, a popular cryptocurrency mixing service used by Avaddon, DarkSide and REvil has allegedly ceased operations. Several apparent customers of the service reported they were unable to access BitMix in the last week.”

***

“The funds, which the Darkside gang was supposed to split between itself and its affiliates (the threat actors who breach networks and deploy the ransomware), were transferred to an unknown wallet, Darksupp said.” reported TheRecord.

The news was revealed by a member of REvil ransomware gang, known as ‘UNKN,’ in a forum post on the Exploit hacking forum. The post was first spotted by Recorded Future researcher Dmitry Smilyanets, it includes a message allegedly from DarkSide explaining how the gang lost access to their blog, payment servers, and DDoS servers as a result of an action conducted by law enforcement action. source

Darkside

“Since the first version, we have promised to speak honestly and openly about problems. A few hours ago, we lost access to the public part of our infrastructure, namely:

  • Blog.
  • Payment server.
  • DOS servers.”

reads the post from UNKN. “Now these servers are unavailable via SSH, the hosting panels are blocked. Hosting support, apart from information “at the request of law enfocement agencies”, does not provide any other information.”

 

The Harbinger of the Colonial Pipeline Ransomware

The harbinger is what protections against hacks and ransomware are underway? Stopping oil and gas flow and delivery is how to stop life and economies. Apply some critical thinking here…it goes way beyond cost as supply is crucial. If the FBI was well aware of the DarkSide in 2020….we need to rethink the Bureau completely.

PC Magazine provides this update in part:

The FBI today confirmed that the cyberattack that forced Colonial Pipeline to take its network offline over the weekend is due to ransomware known as DarkSide.

“The FBI confirms that the DarkSide ransomware is responsible for the compromise of the Colonial Pipeline networks,” the agency says. “We continue to work with the company and our government partners on the investigation.”

During a Monday White House press briefing, Anne Neuberger, Deputy National Security Advisor for Cyber and Emerging Technology, said the FBI has been investigating the DarkSide variant since October 2020, and has determined that it’s a ransomware-as-a-service attack, meaning “criminal affiliates conduct attacks and then share the proceeds with ransomware developers,” she said.

Though news reports have tied DarkSide to Russian operatives, President Biden said Monday that “so far, there’s no evidence…from our intelligence people that Russia is involved, although there is evidence that the actors [behind the ransomware are] in Russia, [so] they have some responsibility to deal with this.”

Colonial Pipeline cyberattack shuts down pipeline that ...

The Chicago Tribune along with other media sources post the notion that this should not last long:

The operator of a major U.S. pipeline hit by a cyberattack said Monday it hopes to have service mostly restored by the end of the week.

Colonial Pipeline offered the update after revealing that it had halted operations because of a ransomware attack the FBI has linked to a criminal gang.

The ransomware attack on the pipeline, which the company says delivers roughly 45% of fuel consumed on the U.S. East Coast, raised concerns that supplies of gasoline, jet fuel and diesel could be disrupted in parts of the region if the disruption continues.

At the moment, though, officials said there is no fuel shortage.

The Colonial Pipeline transports gasoline and other fuel through 10 states between Texas and New Jersey, according to the company.

Colonial is in the process of restarting portions of its network. It said Sunday that its main pipeline remained offline, but that some smaller lines were operational. The company has not said when it would completely restart the pipeline.

“The time of the outage is now approaching critical levels and if it continues to remain down we do expect an increase in East Coast gasoline and diesel prices,” said Debnil Chowdhury, IHS Markit Executive Director. The last time there was an outage of this magnitude was in 2016, he said, when gas prices rose 15 to 20 cents per gallon. But the Northeast had significantly more local refining capacity at that time, potentially intensifying any impact.

The FBI and others got the attribution right on this one and did so very quickly.

The group behind the ransomware that took down Colonial Pipeline late last week has apologized for the “social consequences,” claiming that its goal is to make money, not cause societal problems.

According to Vice, the group’s apology was posted to its dark web site. It reads:

We are apolitical, we do not participate in geopolitics, do not need to tie us with a defined government and look for other our motives.

Our goal is to make money and not creating problems for society.

From today, we introduce moderation and check each company that our partners want to encrypt to avoid social consequences in the future.

According to NYT cybersecurity reporter Nicole Perlroth, DarkSide isn’t necessarily associated with a specific nationstate, but it does tend to avoid holding victims for ransom if their systems are running in certain Russian and Eastern European languages (see embedded tweet below). Bloomberg reports that the group is known to speak Russian.

Source:

Imagine the other worldwide pipeline systems and their respective responses such as all of Europe.

Natural gas pipelines of Europe and surrounding regions ...

 

Meet David Chipman, Biden’s New ATF Director

Biden announced his gun czar at a presser on April 8, 2021. Who is he?
Well, this cat wrote an opinion piece a few weeks ago. In part noted by Newsweek:

(…) declaring that the Constitution’s Second Amendment envisions firearms as being “well regulated.”

Chipman’s article, printed in The Roanoke Times, criticized local governments in Virginia that responded to state legislative firearm reform efforts by declaring themselves as “Second Amendment sanctuary” counties. These counties’ sheriffs and local officials claimed that the Constitution allowed them to block any laws that violated gun owners’ freedoms. “The Second Amendment envisions firearms as being ‘well regulated,’ and individual sheriffs aren’t entitled to decide whether a particular regulation is constitutional—that’s the job of the courts,” Chipman wrote. He also accused local sheriffs and officials of stoking fears, spreading lies and valuing “unregulated access to guns above the lives of their neighbors.”

Chipman studied justice as an American University undergraduate and studied management as a Johns Hopkins University master’s student.

A year after graduating from American University, he began a nearly 23-year career at the ATF. During that time, he worked as a special agent in charge of ATF’s firearms programs and also as a member of the ATF division bearing similarity to special weapons and tactics (SWAT) teams in police departments. He also reportedly disrupted a Virginia firearms trafficking operation that supplied illegal guns to New York City while working at the ATF.

Former ATF Special Agent David Chipman delivers remarks ...

After leaving the agency, he worked for a year and a month as a senior advisor for the municipal firearm reform advocacy group Everytown for Gun Safety. He also worked nearly three years as senior vice president of public safety solutions for ShotSpotter, a gunshot detection system.

***

Chipman, an ATF veteran, works also for the former Rep. Gabby Giffords team on gun control issues.

Reforms, rules and regulations, otherwise called initiatives include:

 

Beware…more to come.