States will share $10 billion for rural health care next year in a program that aims to offset the Trump administration’s massive budget cuts to rural hospitals, federal officials announced Monday.

But while every state applied for money from the Rural Health Transformation Program, it won’t be distributed equally. And critics worry that the funding might be pulled back if a state’s policies don’t match up with the administration’s.

Officials said the average award for 2026 is $200 million, and the fund puts a total of $50 billion into rural health programs over five years. States propose how to spend their awards, and the Centers for Medicare and Medicaid Services assigns project officers to support each state, said agency administrator Dr. Mehmet Oz.

“This fund was crafted as part of the One Big Beautiful Bill, signed only six months ago now into law, in order to push states to be creative,” Oz said in a call with reporters Monday.

Under the program, half of the money is equally distributed to each state. The other half is allocated based on a formula developed by CMS that considered rural population size, the financial health of a state’s medical facilities and health outcomes for a state’s population.

The formula also ties $12 billion of the five-year funding to whether states are implementing health policies prioritized by the Trump administration’s “Make America Healthy Again” initiative. Examples include requiring nutrition education for health care providers, having schools participate in the Presidential Fitness Test or banning the use of SNAP benefits for so-called junk foods, Oz said.

Several Republican-led states — including Arkansas, Iowa, Louisiana, Nebraska, Oklahoma and Texas — have already adopted rules banning the purchase of foods like candy and soda with SNAP benefits.

The money that the states get will be recalculated annually, Oz said, allowing the administration to “claw back” funds if, for example, state leaders don’t pass promised policies. Oz said the clawbacks are not punishments, but leverage governors can use to push policies by pointing to the potential loss of millions.

“I’ve already heard governors express that sentiment that this is not a threat, that this is actually an empowering element of the One Big Beautiful Bill,” he said.

Carrie Cochran-McClain, chief policy officer with the National Rural Health Association, said she’s heard from a number of Democratic-led states that refused to include such restrictions on SNAP benefits even though it could hurt their chance to get more money from the fund.

“It’s not where their state leadership is,” she said. Oz and other federal officials have touted the program as a 50% increase in Medicaid investments in rural health care. Rep. Don Bacon, a Republican from Nebraska who has been critical of many of the administration’s policies but voted for the budget bill that slashed Medicaid, pointed to the fund when recently questioned about how the cuts would hurt rural hospitals.

“That’s why we added a $50 billion rural hospital fund, to help any hospital that’s struggling,” Bacon said. “This money is meant to keep hospitals afloat.”

But experts say it won’t nearly offset the losses that struggling rural hospitals will face from the federal spending law’s $1.2 trillion cut from the federal budget over the next decade, primarily from Medicaid. Millions of people are also expected to lose Medicaid benefits.

Estimates suggest rural hospitals could lose around $137 billion over the next decade because of the budget measure. As many as 300 rural hospitals were at risk for closure because of the GOP’s spending package, according to an analysis by The Cecil G. Sheps Center for Health Services Research at the University of North Carolina at Chapel Hill.

“When you put that up against the $50 billion for the Rural Health Transformation Fund, you know — that math does not add up,” Cochran-McClain said.

She also said there’s no guarantee that the funding will go to rural hospitals in need. For example, she noted, one state’s application included a proposal for healthier, locally sourced school lunch options in rural areas.

And even though innovation is a goal of the program, Cochran-McClain said it’s tough for rural hospitals to innovate when they were struggling to break even before Congress’ Medicaid cuts.

“We talk to rural providers every day that say, ‘I would really love to do x, y, z, but I’m concerned about, you know, meeting payroll at the end of the month,’” she said. “So when you’re in that kind of crisis mode, it is, I would argue, almost impossible to do true innovation.”

China’s military on Monday dispatched air, navy and missile units to conduct joint live-fire drills around the island of Taiwan, which Beijing called a “stern warning” against separatist and “external interference” forces. Taiwan said it was placing its forces on alert and called the Chinese government “the biggest destroyer of peace.”

Taiwan’s aviation authority said more than 100,000 international air travelers would be affected by flight cancellations or diversions.

The drills came after Beijing expressed anger at what could be the largest-ever U.S. arms sale to the self-ruled territory and at a statement by Japan’s prime minister, Sanae Takaichi, saying its military could get involved if China were to take action against Taiwan. China says Taiwan must come under its rule.

The Chinese military did not mention the United States and Japan in its statement on Monday, but Beijing’s foreign ministry accused the Taiwanese ruling party of trying to seek independence through requesting U.S. support.

Taiwan’s Defense Ministry said rapid response exercises were underway, with forces on high alert. “The Chinese Communist Party’s targeted military exercises further confirm its nature as an aggressor and the biggest destroyer of peace,” it said.

Beijing sends warplanes and navy vessels toward the island on a near-daily basis, and in recent years it has stepped up the scope and scale of these exercises.

Senior Col. Shi Yi, spokesperson of China’s People’s Liberation Army’s Eastern Theater Command, said the drills would be conducted in the Taiwan Strait and areas to the north, southwest, southeast and east of the island.

Shi said the activities would focus on sea-air combat readiness patrol, “joint seizure of comprehensive superiority” and blockades on key ports. It was also the first large-scale military drill where the command publicly mentioned one goal was “all-dimensional deterrence outside the island chain.”

“It is a stern warning against ‘Taiwan independence’ separatist forces and external interference forces, and it is a legitimate and necessary action to safeguard China’s sovereignty and national unity,” Shi said.

China and Taiwan have been governed separately since 1949, when a civil war brought the Communist Party to power in Beijing. Defeated Nationalist Party forces fled to Taiwan. The island has operated since then with its own government, though the mainland’s government claims it as sovereign territory.

The command on Monday deployed destroyers, frigates, fighters, bombers and unmanned aerial vehicles, alongside long-range rockets, to the north and southwest of the Taiwan Strait. It carried out live-fire exercises against targets in the waters as well. Among other training, drills to test the capabilities of sea-air coordination and precise target hunting were conducted in the waters and airspace to the east of the strait.

Hsieh Jih-sheng, deputy chief of the general staff for intelligence of the Taiwanese Defense Ministry, said that as of 3 p.m. Monday, 89 aircraft and drones were operating around the strait, with 67 of them entering the “response zone” — airspace under the force’s monitoring and response. In the sea, the ministry detected 14 navy ships around the strait and four other warships in the Western Pacific, in addition to 14 coast guard vessels.

“Conducting live-fire exercises around the Taiwan Strait ... does not only mean military pressure on us. It may bring more complex impact and challenges to the international community and neighboring countries,” Hsieh told reporters.

Military drills are set to continue Tuesday. Taiwan’s Civil Aviation Administration said Chinese authorities had issued a notice saying seven temporary dangerous zones would be set up around the strait to carry out rocket-firing exercises from 8 a.m. to 6 p.m. on Tuesday, barring aircraft from entering them.

The Taiwanese aviation authority said more than 850 international flights were initially scheduled during that period and the drills would affect over 100,000 travelers. Over 80 domestic flights, involving around 6,000 passengers, were also canceled, it added.

The Chinese command released themed posters about the drills online accompanied by provocative wording. One poster depicted two shields with the Great Wall alongside three military aircraft and two ships. Its social media post said the drills were about the “Shield of Justice, Smashing Illusion,” adding that any foreign interlopers or separatists touching the shields would be eliminated.

In October, the Taiwanese government said it would accelerate the building of a “Taiwan Shield” or “T-Dome” air defense system in the face of the military threat from China.

The military tensions came a day after Taipei Mayor Chiang Wan-an said he hoped the Taiwan Strait would be associated with peace and prosperity, instead of “crashing waves and howling winds,” during a trip to Shanghai.

Days after Ghislaine Maxwell asked a judge to immediately free her from a 20-year prison sentence, the public release of grand jury transcripts from her sex trafficking case returned the spotlight to victims whose allegations helped land her behind bars.

The disclosure of the transcripts as part of the Justice Department’s ongoing release of its investigative files on Maxwell and the late sex offender Jeffrey Epstein exposed how an FBI agent told grand jurors about Maxwell’s critical role in Epstein’s decades-long sexual abuse of girls and young women.

Maxwell, a British socialite and publishing heir, was convicted of sex trafficking in December 2021 after four women told a federal jury in New York City about how she and Epstein abused them in the 1990s and early 2000s. Epstein never went to trial. He was arrested in July 2019 on sex trafficking charges and killed himself a month later in his cell at a Manhattan federal jail.

Two weeks ago, as the Justice Department prepared to begin releasing what are commonly known as the Epstein files, Maxwell filed a habeas petition, asking a federal judge to free her on grounds that “substantial new evidence” has emerged proving that constitutional violations spoiled her trial.

Maxwell claimed exonerating information was withheld and that witnesses lied in their testimony. She filed the petition on her own, without the assistance of a lawyer.

This week, the judge, Paul A. Engelmayer, scolded Maxwell for failing to remove victim names and other identifying information from her court papers. He said future filings must be kept sealed and out of public view until they have been reviewed and redacted to protect victims’ identities.

Victims fear Maxwell will be pardoned

Epstein accuser Danielle Bensky said the release of records has only sharpened the focus on Maxwell’s crimes among their victims. Bensky said she’s been involved in daily discussions with about two dozen other victims that make clear Maxwell “is a criminal who was 1,000% engaged in sexual acts.”

“I’ve heard things that would make your blood curdle. I just had a conversation with a survivor last night who said she was the puppeteer,” Bensky said.

Bensky said she was sexually abused by Epstein two decades ago. She said she was never personally abused by Maxwell.
Delayed and heavily redacted files

The transcripts of grand jury proceedings that resulted in Maxwell’s indictment were released this week in accordance with the Epstein Files Transparency Act, a law enacted last month after months of public and political pressure.

The Justice Department has been periodically posting records after acknowledging it would miss last Friday’s congressionally mandated deadline to release all records. It blamed the delay on the time-consuming process of obscuring victims’ names and other identifying information.

On Wednesday, the department said it may need a “few more weeks” to release the full trove after suddenly discovering more than a million potentially relevant documents. It was a stunning development after department officials suggested months ago that they’d already accounted for the vast universe of Epstein-related materials.

Some of the Epstein and Maxwell grand jury records were initially released with heavy redactions — A 119-page document marked “Grand Jury-NY” — was entirely blacked out. Updated versions were posted over the weekend.

FBI agent testifies Maxwell manipulated young girl

An FBI agent’s grand jury testimony, describing interviews conducted with Epstein victims, foreshadowed trial testimony a year later from four women who described Maxwell’s role in their sexual abuse from 1994 to 2004.

The agent told of a woman who described meeting Maxwell and Epstein as a 14-year-old attending a Michigan summer arts camp in 1994. Flight logs showed Epstein and Maxwell went to the school sponsoring the camp because Epstein was a donor.

According to the agent, whose name was redacted from the transcript, the girl had a chance encounter with Epstein and Maxwell one day. After learning that the girl was from Palm Beach, Florida, Epstein mentioned that he sometimes gave scholarships to students and they requested her phone number, the agent said.

Once home, the girl visited Epstein’s estate with her mother for tea and the mother was impressed when Epstein said he provided scholarships, enough so that the mother said Epstein was like a “godfather,” the agent said.

The agent said the girl began regularly going to the estate as Epstein and Maxwell “groomed” her with gifts and trips to the movies, and Epstein began paying for voice lessons and giving her money that he said she should give to her struggling mother.

The agent said the girl thought her relationship with Epstein and Maxwell was strange, “but Maxwell normalized it for her. She was like a cool, older sister and made comments like, ‘This is what grownups do.’”

Eventually, the agent testified, the girl saw Maxwell topless at the pool. After she revealed that she hoped to be an actor and a model, Epstein told her he was best friends with the owner of Victoria’s Secret and that she’ll have to learn to be comfortable in her underwear and not be a prude, the agent said.

Then, the agent said, the girl asked Epstein what he meant by that and the financier pulled her into his lap and masturbated. After that, the agent added, the girl’s encounters with Epstein began to include sexual contact, particularly in his massage room.

Maxwell was sometimes there with other girls, the agent said. One of the girls would begin massaging Epstein and Maxwell would tease the girls, the agent said.

“She’d grab the girl’s breasts, and she would direct the girls on what to do,” the agent said, relaying the girl’s account. Maxwell’s attitude during the encounters was ”very casual; she acted like this was normal,” the agent said.

The released testimony appeared to reflect the testimony at Maxwell’s 2021 trial by a woman who testified under the pseudonym “Jane.”

At trial, Jane said Maxwell also participated in group sessions between multiple females and Epstein that usually began with Epstein or Maxwell leading them all into a bedroom or a massage room at the Palm Beach residence.

The Supreme Court sided with immigration judges on Friday, rebuffing the Trump administration for now in a case with possible implications for federal workers as the justices weigh expanding presidential firing power.

The decision is a technical step in a long-running case, but it touches on the effects of a series of high-profile firings under President Donald Trump. The justices let stand a ruling that raised questions about the Trump administration's handling of the federal workforce, though they also signaled that lower courts should move cautiously.

Immigration judges are federal employees, and the question at the center of the case is about whether they can sue to challenge a policy restricting their public speeches or if they are required to use a separate complaint system for the federal workforce.

Trump's Republican administration asked the Supreme Court to intervene after an appeals court found that Trump’s firings of top complaint system officials had raised questions about whether it's still working as intended.

The Justice Department said the firings are within the president’s power and the lower court had no grounds to raise questions. The solicitor general asked the Supreme Court to quickly freeze the ruling as he pushes to have the immigration judges’ case removed from federal court.

The justices declined, though they also said the Trump administration could return if the lower courts moved too fast. The justices have allowed most of Trump’s firings for now and are weighing whether to formally expand his legal power to fire independent agency officials by overturning job protections enshrined in a 90-year-old decision.

A union formerly representing immigration judges, who work for the Justice Department, first sued in 2020 to challenge a policy restricting what the judges can speak about in public. They say the case is a free-speech issue that belongs in federal court.

In recent months, Trump's administration has fired dozens of immigration judges seen by his allies as too lenient.

While the order is not a final decision, the case could eventually have implications for other federal workers who want to challenge firings in court rather than the employee complaint system now largely overseen by Trump appointees.

The decision comes after a series of wins for the Justice Department on the high court’s emergency docket. The court has sided with the Trump administration about two dozen times on issues ranging from immigration to federal funding.

Onetime cryptocurrency mogul Do Kwon was sentenced Thursday to 15 years in prison after a $40 billion crash revealed his crypto ecosystem to be a fraud. Victims said the 34-year-old financial technology whiz weaponized their trust to convince them that the investment — secretly propped up by cash infusions — was safe.

Kwon, a Stanford graduate known by some as “the cryptocurrency king,” apologized after listening as victims — one in court and others by telephone — described the scam’s toll: wiping out nest eggs, depleting charities and wrecking lives. One told the judge in a letter that he contemplated suicide after his father lost his retirement money in the scheme.

Judge Paul A. Engelmayer said at a daylong sentencing hearing in Manhattan federal court that the government’s recommendation of 12 years in prison was “unreasonably lenient” and that the defense’s request for five years was “utterly unthinkable and wildly unreasonable.” Kwon faced a maximum sentence of 25 years in prison.

“Your offense caused real people to lose $40 billion in real money, not some paper loss,” Engelmayer told Kwon, who sat at the defense table in a yellow jail suit. The judge called it “a fraud on an epic, generational scale” and said Kwon had an “almost mystical hold” on investors and caused incalculable “human wreckage.”

Kwon pleaded guilty in August to fraud charges stemming from the collapse of Terraform Labs, the Singapore-based firm he co-founded in 2018. The loss exceeded the combined losses from FTX founder Sam Bankman-Fried and OneCoin co-founder Karl Sebastian Greenwood’s frauds, prosecutors said. Engelmayer estimated there may have been a million victims.

Terraform Labs had touted its TerraUSD as a reliable “stablecoin” — a kind of currency typically pegged to stable assets to prevent drastic fluctuations in prices. But prosecutors say it was an illusion backed by outside cash infusions that came crumbling down after it plunged far below its $1 peg. The crash devastated investors in TerraUSD and its floating sister currency, Luna, triggering “a cascade of crises that swept through cryptocurrency markets.”

Kwon tried to rebuild Terraform Labs in Singapore before fleeing to the Balkans on a false passport, prosecutors said. He’s been locked up since his March 2023 arrest in Montenegro. He was credited for 17 months he spent in jail there before being extradited to the U.S.

Kwon agreed to forfeit over $19 million as part of his plea deal. His lawyers argued his conduct stemmed not from greed, but hubris and desperation. Engelmayer rejected his request to serve his sentence in his native South Korea, where he also faces prosecution and where his wife and 4-year-old daughter live.

“I have spent almost every waking moment of the last few years thinking of what I could have done different and what I can do now to make things right,” Kwon told Engelmayer. Hearing from victims, he said, was “harrowing and reminded me again of the great losses that I have caused.”

One victim, speaking by telephone, said his wife divorced him, his sons had to skip college, and he had to move back to Croatia to live with his parents after TerraUSD’s crash evaporated his family’s life savings. Another said he has to “live with the guilt” of persuading his in-laws and hundreds of nonprofit organizations to invest.

Stanislav Trofimchuk said his family’s investment plummeted from $190,000 to $13,000 — “17 years of our life, gone” during what he described as “two weeks of sheer terror.”

Chauncey St. John, speaking in court, said some nonprofits he worked with lost more than $2 million and a church group lost about $900,000. He and his wife are saddled with debt and his in-laws have been forced to work well past their planned retirement, he said.

Nevertheless, St. John said, he forgives Kwon and “I pray to God to have mercy on his soul.”

A prosecutor read excerpts from some of more than 300 letters submitted by victims, including a person identified only by initials who lost nearly $11,400 while juggling bills and trying to complete college. Kwon had made Terra seem like a safe place to stash savings, the person said.

“To some that is just a number on a page, but to me it was years of effort,” the person wrote. “Watching it evaporate, literally overnight, was one of the most terrifying experiences of my life.”

“What happened was not an accident. It was not a market event. It was deception,” the person added, imploring the judge to “consider the human cost of this tragedy.”

Kwon created an “illusion of resilience while covering up systemic failure,” Assistant U.S. Attorney Sarah Mortazavi told Engelmayer. “This was fraud executed with arrogance, manipulation and total disregard for people.”

A top European Union official on Monday warned the United States against interfering in Europe’s affairs and said only European citizens can decide which parties should govern them.

European Council President Antonio Costa’s remarks came in reaction to the Trump administration’s new national security strategy, which was published on Friday and paints European allies as weak while offering tacit support to far-right political parties.

It’s “good” that the strategy depicts European countries as an ally, but “allies don’t threaten to interfere in the domestic political choices of their allies,” Costa said.

“What we can’t accept is the threat of interference in European political life. The United States cannot replace European citizens in choosing what the good or the bad parties are,” he said in Paris at the Jacques Delors Institute, a think tank.

Fabian Zuleeg, chief executive at the European Policy Centre think tank, said that stridently nationalist parties in Europe will be emboldened by the strategy document and “will intensify efforts to hollow out the EU from within.”

“Pro-European liberal forces need to finally wake up: Trump’s America is not an ally but an adversary to Europe’s freedoms and fundamental values. His objective is to replace our democratic system with the illiberal populism now entrenched in the U.S.,” Zuleeg said.

The strategy was also critical of European free speech and migration policy. U.S. allies in Europe face the “prospect of civilizational erasure,” the document said, raising doubts about their long-term reliability as American partners.

But Costa, who chairs summits of the 27 national EU leaders, said Europe’s “history has taught us that you can’t have freedom of speech without freedom of information.”

The former Portuguese prime minister also warned “there will never be free speech if the freedom of information of citizens is sacrificed for the aims of the tech oligarchs in the United States.”

Speaking to reporters in Berlin, German government spokesperson Sebastian Hille underlined that “Europe and the U.S. are historically, economically and culturally linked, and remain close partners.”

“But we reject the partly critical tones against the EU,” he said. “Political freedoms, including the right to freedom of expression, belong to the fundamental values of the European Union. We view accusations regarding this more as ideology than strategy.”

The security strategy is the administration’s first since President Donald Trump returned to office in January. It breaks starkly from the course set by President Joe Biden’s Democratic administration, which sought to reinvigorate U.S. alliances.

It comes as the U.S. seeks an end to Russia’s nearly 4-year-old war in Ukraine, a goal that the national security strategy says is in America’s vital interests.

But the text makes clear that the U.S. wants to improve its relationship with Russia after years of Moscow being treated as a global pariah and ending the war is a core U.S. interest to “reestablish strategic stability with Russia.”

Kremlin spokesman Dmitry Peskov has said the document “absolutely corresponds to our vision.” Over the course of the war, Russia has worked to drive a wedge between NATO allies, particularly between the U.S. and Ukraine’s main backers in Europe.

“If we read closely the part about Ukraine, we can understand why Moscow shares this vision,” Costa said. “The objective in this strategy is not a fair and durable peace. It’s only (about) the end of hostilities, and the stability of relations with Russia.”

“Everyone wants stable relations with Russia,” he added, but “we can’t have stable relations with Russia when Russia remains a threat to our security.”

Top EU officials and intelligence officers have warned Russia could be in a position to launch an attack elsewhere in Europe in three to five years should it defeat Ukraine.