Good morning:
This week in City Journal, senior fellow Christopher F. Rufo and investigative reporter Kenneth Schrupp expose a California program that may be responsible for up to $12 billion in fraudulent claims. Billed as a compassionate system for at-home elder care, the state’s In-Home Supportive Services program pays family members and other individuals to provide home-based care for the elderly and disabled—at a cost of nearly $30 billion per year. Rufo and Schrupp explain how weak oversight, reliance on self-reported hours, and limits on unannounced inspections have enabled billions in annual losses—potentially up to 40% of program spending—while powerful home-care unions collect substantial dues and support the state’s Democratic establishment. Despite scattered prosecutions, enforcement remains minimal, and the program continues to expand, leaving federal intervention as the only available mechanism for meaningful accountability.
Also in City Journal, director of Cities John Ketcham and adjunct fellow Christian Browne review the New York City Council’s proposed fiscal 2027 budget, which has been widely perceived as a rebuke to the democratic socialist ambitions of Mayor Zohran Mamdani. According to Mayor Mamdani, the council opted to close the budget gap by cutting services because rather than by supporting the Mayor’s tax-the-rich agenda. But as Ketcham and Browne explain, the council’s budget does not propose cutting services. Instead, it relies on revenue re-estimates, savings achieved through efficiency measures, and targeted tax increases. The council’s plan is not perfect—it also opts to play dangerous fiscal games with pension funding—but it deserves recognition for doing something the mayor refuses to do: maintaining contact with fiscal and economic reality.
In Unherd, policy analyst Joseph Figliolia highlights Mayor Mamdani’s ambitious plans for the new Office of LGBTQIA+ Affairs, which has received $87 million in funding including $20 million for “affirming” mental health services and $5 for education. These moves signal a city policy that supports steering minors experiencing gender distress toward medical transition pathways, regardless of the long-term risks or contested evidence. But growing legal and medical scrutiny—along with rulings like United States v. Skrmetti—have already led city hospitals to scale back gender services, with little pushback from the Mayor’s office. Mamdani is caught between activists and the Trump administration, so his LGBTQIA+ agenda will likely remain largely symbolic.
In the Washington Post, senior fellow Brad Hargreaves calls out a key flaw in the 21st Century ROAD to Housing Act, an otherwise promising housing bill that just passed the senate. While the legislation includes long-sought supply-side reforms, it also contains a provision that would force large investors to sell build-to-rent homes within seven years. That requirement, he contends, would deter investment in one of the fastest-growing sources of new housing—purpose-built rental communities that function more like apartment complexes than speculative home purchases. The result: fewer homes built, especially for families who can’t yet afford to buy but want access to stable neighborhoods and good schools.
Finally, the Research team published a new brief today by Preston Cooper of the American Enterprise Institute. Cooper notes that while college still delivers value on average, many programs leave students worse off once costs and dropout risk are considered. As students shift toward higher-earning fields and policymakers tie funding to outcomes, schools that fail to deliver clear economic returns risk declining enrollment and long-term viability. Trustees who want their institutions to thrive should pay close attention to the return on investment (ROI) their institutions deliver.
Continue reading for all these insights and more. Nick Saffran Senior Editor |
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When College Doesn’t Pay: A Guide for University Trustees
By Preston Cooper | Manhattan Institute | Photo by Jerry Holt/Star Tribune via Getty Images
For decades, American colleges and universities have enjoyed rising demand and tuition revenues, fueled by government subsidies and a widespread belief that college is a “golden ticket” to a stable income. But as Preston Cooper argues in a new MI issue brief, that era is coming to a close. To remain viable, trustees must focus more closely on the return on investment (ROI) their institutions deliver. While college still pays off on average, nearly a quarter of bachelor’s programs—and over 40% of two-year and master’s programs—leave students worse off once tuition, lost earnings, and dropout risk are considered. Students are responding: enrollment is shifting away from low-performing schools and toward higher-paying fields like engineering and computer science. At the same time, policymakers are beginning to tie funding and loan access to outcomes. Colleges that fail to deliver clear economic value risk losing students, funding, and long-term viability. |
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This Great, Bipartisan Housing Bill Has a Major Flaw
By Brad Hargreaves | The Washington Post | Photo by: Jeffrey Greenberg/Universal Images Group via Getty Images
The 21st Century ROAD to Housing Act, which recently passed the Senate, is "remarkable feat... that attempts to address a crisis that has priced working families out of major metropolitan areas and left younger generations with diminishing options. That makes it all the more frustrating that the bill includes a provision, Section 901, that would hollow out its core promise."
"Titled 'Homes Are for People, Not Corporations,' the provision requires large investors who build or purchase homes specifically for rental to sell those homes to individuals within seven years, regardless of market conditions at the time. The section’s ostensible goal is to prevent those investors — companies that own at least 350 homes — from competing against individual home buyers. But its end result will be the evisceration of one of the fastest-growing and most promising sources of new family-oriented housing in the United States today: build-to-rent communities."
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The Empty Symbolism of Zohran Mamdani’s Gender Agenda
By Joseph Figliolia | UnHerd | Photo by Lev Radin/Pacific Press/LightRocket via Getty Images
“Based on his campaign promises, the Mayor’s LGBTQIA+ Affairs Office appeared poised to push an agenda that clashes with the developmental realities of children and adolescents. In practice, this could mean steering minors experiencing gender distress toward medical transition pathways, regardless of the long-term risks or contested evidence.”
“According to campaign materials, $87 million in funding was set aside for the office, with $20 million going toward “affirming” mental health services and $5 million going toward education. The latter funds also cover a move to ensconce LGBTQIA+ staffers in schools and to help codify the city’s controversial guidelines supporting “gender-expansive students.” Of note, the guidelines are explicit that schools do not need to share information about a student’s “gender identity” with parents.”
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The New York City Council Just Countered Mamdani’s Tax-the-Rich Plan
By John Ketcham & Christian Browne | City Journal | Photo by Ira L. Black/Corbis via Getty Images
“Last week, the New York City Council released its proposed fiscal 2027 budget. Widely perceived as a rebuke to Mayor Zohran Mamdani’s proposal from last month, the council’s plan is more fiscally responsible and pro-economic growth than is the mayor’s proposal. While Mamdani insists that higher taxes are necessary to prevent austerity measures, the council’s proposal shows that the city need not broadly “tax the rich” to close its budget gap.”
“The council’s budget represents a substantial improvement over the mayor’s plan. Menin has put forth a reasonable attempt to close the city’s current shortfall while resisting the most excessive demands for higher taxes and unchecked spending. The speaker and her colleagues deserve recognition for doing something the mayor refuses to do: maintaining contact with fiscal and economic reality.” |
Gavin Newsom’s $30 Billion Fraud Magnet
By Christopher F. Rufo & Kenneth Schrupp | City Journal | Photo by Marijan Murat/picture alliance via Getty Images
“California Governor Gavin Newsom is embroiled in a national fraud scandal. Thus far, much of the coverage has focused on alleged schemes related to unemployment insurance, hospice care, and food stamps. In this exclusive investigation, we shine a light on one of California’s largest initiatives: the In-Home Supportive Services Program, or IHSS, which pays family members and other individuals to provide home-based care for the elderly and disabled—at a cost of nearly $30 billion per year.”
“On the surface, IHSS presents itself as an instrument of compassion, directing billions to caregivers who help with cooking, personal care, laundry, and other daily needs inside recipients’ homes. But a growing number of experts and critics argue that the program is rife with fraud, losing roughly an estimated $6 billion to $12 billion yearly to scammers. Meantime, the state’s powerful home-care unions collect more than $149 million in membership dues, funneling money into the political network supporting Newsom and California Democrats.”
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Photo Credits: adamkaz/E+/Getty Images; Noah Berger/AP Photo; Anadolu/Getty Images; Wong Yu Liang/Getty Images; Catherine McQueen/Getty Images; Probal Rashid/LightRocket/Getty Images |
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