N.Y. bill targets anti-weaponization fund payouts

May 29, 2026

Summary

A New York bill would impose a 100% state tax on residents who receive money from the Trump administration’s anti-weaponization fund.

Why this matters

The proposal shows how states may respond to federal payments tied to a politically contested Justice Department fund. It also could affect New York residents, including Jan. 6 defendants, if they receive money from it.

A New York lawmaker said state residents who receive money from the Trump administration’s $1.8 billion “anti-weaponization” fund would face a 100% state income tax under a bill he is drafting.

Assemblyman Alex Bores, a Manhattan Democrat, said his proposed Anti-Insurrectionist Act would ensure that “no resident of this State is enriched” by distributions from the fund, according to a draft memo to the State Assembly.

Bores is one of 10 Democrats running for Congress in a district represented by Rep. Jerry Nadler. His proposal resembles a bill introduced last week by Democratic members of the House Ways and Means Committee that would impose a 100% tax on money a sitting president receives from lawsuits against the federal government.

The Justice Department announced the fund last week as part of a settlement with Trump over his lawsuit against the Internal Revenue Service. The department said it would create the fund “in exchange” for Trump dropping his $10 billion lawsuit against the IRS and other claims tied to the 2022 search of Mar-a-Lago and allegations related to the 2016 presidential election. The department said the fund would provide a “systematic process to hear and redress claims of others who suffered weaponization and lawfare.”

The fund drew criticism from both parties and prompted several lawsuits. Sen. Ted Cruz, R-Texas, said about half of Senate Republicans expressed concerns about it during a closed-door meeting last week with Attorney General Todd Blanche. House Democrats said Trump could use it to reward allies, including people convicted or charged in connection with the Jan. 6 attack on the Capitol.

Vice President JD Vance said Tuesday that “anybody can apply” for money from the fund. The first claimant was Michael Caputo, a longtime Trump ally, who is seeking $2.7 million.

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Virginia

Virginia colleges face federal accreditation changes

Draft federal rules could reshape college accreditation in Virginia, affecting aid, credit transfers, and oversight.

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Virginia colleges and universities could face new competition and federal scrutiny under draft U.S. Department of Education rules that would change how higher education accreditors are overseen.

Accreditation affects colleges’ access to federal financial aid, the credibility of degrees, credit transfers, and accountability standards.

President Donald Trump directed the Education Department to pursue the changes in an April executive order. The order said accreditors had focused less on outcomes such as affordability, graduation, and employment, and more on diversity, equity, and inclusion policies.

“Accreditation is not simply a compliance exercise, but a peer-driven process that assures quality across a diverse higher education system,” the Council for Higher Education Accreditation said in an April 14 statement. “As this process moves forward, we hope for a balanced framework that strengthens quality and student success while preserving the core strengths of accreditation: peer review; respect for institutional mission; and a focus on continuous improvement.”

Most Virginia colleges and universities are accredited by the Southern Association of Colleges and Schools Commission on Colleges.

The administration has not specifically targeted that accreditor. In December, however, the commission said it would make changes to improve efficiency and oversight.

According to the Education Department, after two public hearings and nonpublic sessions, an accreditation, innovation, and modernization committee reached consensus on a proposed framework for new rules.

The department said the rules would increase transparency and fairness, reduce political bias, lower barriers for new accreditors, ease credit transfers, emphasize merit and student outcomes, protect academic freedom and intellectual diversity, reduce accreditation costs for institutions, and limit coordination between program accreditors and related trade associations.

Under Secretary of Education Nicholas Kent said the administration had been charged with carrying out higher education reforms and that he was confident the changes would benefit students and taxpayers.

The department plans to publish and finalize the regulations by November. Legal challenges are expected before the rules are set to take effect in July 2027.
South Carolina

Novant Health buys Hilton Head site for $4.3M

The project is part of Novant’s broader expansion in the region. In 2024, Hilton Head Medical Center and Coastal Carolina Medical Center joined the Novant Health system as part of a $2.4 billion deal with Tenet Healthcare Corp.

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Novant Health bought the former Modern Classic Motors site on Hilton Head Island for $4.3 million, according to a Wednesday news release from the health system.

The property at 355 William Hilton Parkway spans more than 4.5 acres. The town bought the land in 2019, and Hilton Head Town Council approved its sale to Novant in December, according to the Town of Hilton Head Island.

Novant said it plans to build a 25,000-square-foot medical office building offering primary care, physical therapy and urology, along with 15,000 square feet of additional medical office space.

The health system said it expects to invest about $25.3 million in the project, including land acquisition, construction, equipment and technology. The development is expected to create about 50 jobs on Hilton Head Island, according to Novant.

An affordable and workforce housing development for health care workers is also under construction on the island.

Novant is also planning a new hospital and another medical center in Bluffton along Buckwalter Parkway, as well as a 17,000-square-foot medical complex in Beaufort.
North Carolina

Ex-county candidate charged in gaming probe

Earlier Thursday, ALE agents said the warrants were part of a joint-agency financial investigation into illegal video game and gambling machines.

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A former Craven County commissioner candidate faces multiple criminal charges after a multijurisdictional investigation into illegal video gaming and gambling machines in Craven County.

Gregory Muse, 64, of New Bern, was charged Thursday after Alcohol Law Enforcement agents and local authorities executed search warrants at several locations, including properties tied to Muse in the James City area.

According to court documents, Muse was charged with felony operation of five or more video gaming machines, engaging in a continuing criminal enterprise, operating or possessing slot machines, manufacturing or selling slot machines, and operating video gaming machines.

Investigators alleged that ALE special agents visited businesses in New Bern on Dec. 13, 2024, and March 18, 2026, where they found five or more illegal slot machines operating in violation of state law. Court records said agents played the games and determined they were illegal.

One warrant said Muse admitted ownership and demonstrated “care/custody/control” of the machines during an interview with agents on Dec. 16, 2024.

Authorities also charged Muse with engaging in a continuing criminal enterprise, alleging he worked “in concert with five or more other persons” in an operation involving illegal gaming violations from which he obtained “substantial income or resources.”

One of the main search locations was a home on Madam Moores Lane in James City near New Bern. Craven County GIS records listed the property owner as Greg and Kelli Muse. Kelli Muse is a former member of the Craven County Board of Education.

Authorities also served warrants at other properties in Craven County, including a warehouse in James City tied to Muse through property records and businesses in New Bern.

At least one person was escorted from one business in handcuffs Thursday afternoon, but authorities did not publicly identify that person or announce additional charges.

Court records showed Muse received a $250,000 secured bond. His release conditions barred him from owning or operating illegal video gaming or slot machines.
North Carolina

2 arrested in Aurora-area fentanyl investigation

The sheriff’s office said the investigation remained ongoing and that additional arrests or charges could follow.

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Two people were arrested earlier this month after a drug investigation in the Aurora area involving fentanyl sales, according to the Beaufort County Sheriff’s Office.

Deputies with the Sheriff’s Response Team executed a search warrant May 13 in the Aurora/Richlands area after investigators conducted several controlled drug purchases involving 46-year-old Donald Ramon Moore, the sheriff’s office said.

Moore was arrested and charged with two counts of possession with intent to sell and deliver a Schedule II controlled substance, identified by deputies as fentanyl, and possession with intent to sell and deliver cocaine.

The sheriff’s office said Moore was being held without bond at the Beaufort County Detention Center.

Riggins was charged with felony possession of fentanyl and was being held on a $10,000 secured bond, according to deputies.
North Carolina

Emerald Isle approves fire station, buys future site

Emerald Isle approved a new Fire Station 2 and bought land for a future Fire Station 3.

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Emerald Isle leaders approved a new fire station and completed a land purchase for a future station as part of planned upgrades to the town’s fire and emergency medical services.

At its May 12 meeting, the Board of Commissioners approved construction of a new Fire Station 2. The facility will replace the current station on Emerald Drive and serve eastern and central Emerald Isle.

Town officials said the station will have more than 6,600 square feet, three vehicle bays, larger living areas, and individual bunk rooms for firefighters and emergency medical services staff.

Construction is expected to begin in July and finish by mid-2027. Officials said the nearly $3.5 million project will be fully funded with Federal Emergency Management Agency money awarded after Hurricane Florence.

During construction, Emerald Isle Fire Department staff are considering temporary station options, including leasing an existing building or using a modular structure.

Town leaders also said they finalized the purchase of a 2-acre property near Coast Guard Road and Reed Drive for a future Fire Station 3.

Officials said the site is intended to improve fire and EMS response times in western Emerald Isle. The town plans to begin construction on Fire Station 3 within three to five years after the new Fire Station 2 is completed.
North Carolina

Greg Lindberg sentenced to 12 years in fraud case

Officials said the scheme caused major financial losses for insurance companies and policyholders, with thousands of victims still collectively owed more than $1 billion.

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Businessman Greg Lindberg, 56, of Tampa, Florida, was sentenced to 12 years in federal prison in a North Carolina insurance fraud and bribery case.

Federal prosecutors said Lindberg, founder and chairman of Eli Global LLC and owner of Global Bankers Insurance Group, led conspiracies that defrauded insurance companies, regulators, and policyholders out of billions of dollars.

According to court documents, Lindberg and his co-conspirators concealed the financial condition of insurance companies he controlled and improperly used company funds for personal gain. Prosecutors said companies linked to Lindberg invested more than $2 billion in loans and securities tied to his affiliated businesses in North Carolina, Bermuda, Malta, and elsewhere.

Authorities said Lindberg personally benefited by forgiving more than $125 million in loans to himself and used insurance company funds to support a lifestyle that included private jets, mansions, and a 200-foot yacht.

Federal officials also said Lindberg took part in a bribery conspiracy involving the North Carolina Department of Insurance. Prosecutors said Lindberg and others provided millions of dollars in campaign contributions and other items of value in exchange for favorable official action involving oversight of his insurance companies.

The sentencing came months after North Carolina Insurance Commissioner Mike Causey urged President Donald Trump not to pardon Lindberg in a December 2025 letter. Causey wrote that Lindberg’s actions were deliberate and aimed at corrupting the state’s regulatory system for personal gain.

Causey said Lindberg was recorded during an 18-month Federal Bureau of Investigation investigation attempting to bribe him in his role as insurance commissioner. According to Causey, Lindberg sought the removal of a senior Department of Insurance official after financial improprieties were uncovered within Lindberg’s insurance companies.

Lindberg pleaded guilty in November 2024 to conspiracy to commit offenses against the United States and conspiracy to commit money laundering. In May 2024, a federal jury convicted him on bribery and honest services wire fraud conspiracy charges.
lejeune lead

North Carolina certifies state-record graysby grouper

The fish measured just over 17 inches long, with a 13-inch girth, and was officially weighed at Intracoastal Angler in Wilmington.

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North Carolina officials certified a new state-record graysby grouper caught by Wyatt Rabon of Leland.

The Division of Marine Fisheries said Rabon landed the 3-pound, 8-ounce fish May 16 while fishing about 45 miles offshore of Southport. The catch surpassed the previous state record, set in 2022, by just under half a pound.

State officials said the fish also unofficially tied the current International Game Fish Association all-tackle world record for graysby grouper, which was caught off South Carolina in 2023.

Rabon was fishing with his father and friends aboard their personal boat when he hooked the fish using live pinfish as bait. He landed it on 100-pound test with a Shimano rod-and-reel setup.

The group had been targeting grouper and triggerfish and nearly cleaned the fish after returning home before realizing it could qualify as a record catch.

According to state officials, graysby grouper are a smaller shallow-water grouper species found in the South Atlantic. They have tan bodies covered in small red dots and rounded tail fins.
North Carolina

NC Aquarium at Fort Fisher starts major expansion

The expansion will add a 400,000-gallon shark habitat, a coral habitat, an interactive touch pool, and a larger education center intended to expand conservation and learning opportunities.

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The North Carolina Aquarium at Fort Fisher broke ground Thursday on a renovation and expansion project that state officials said will make it the largest aquarium in the state when completed.

State leaders, aquarium officials, community partners, and donors gathered to mark the start of construction on the multi-year project.

Officials with the North Carolina Department of Natural and Cultural Resources said the project reflects the aquarium system’s focus on education, conservation, and visitor experience as it marks its 50th anniversary.

Construction is expected to take about 30 months. The aquarium temporarily closed to the public May 26 to allow work to begin, though most aquatic animals will remain onsite under the care of aquarium staff.

During construction, aquarium officials said a temporary interactive exhibit, Discovery Bay, will open at Independence Mall in Wilmington in mid-June.
South Carolina

SC GOP attorney general candidates clash in debate

Early voting for the June 9 primary began Tuesday and will continue on weekdays through June 5. The winner will face Democrat Richard Hricik, a Charleston attorney, in November.

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Republican candidates for South Carolina attorney general traded accusations during a debate Wednesday night, while largely agreeing on policy and differing most clearly on medical marijuana.

Sen. Stephen Goldfinch and 1st Circuit Solicitor David Pascoe exchanged repeated attacks during the hourlong SCETV debate. 8th Circuit Solicitor David Stumbo did not engage in the back-and-forth.

Pascoe, who switched to the Republican Party last year after two decades as a Democratic solicitor, questioned Goldfinch’s prosecutorial experience. Goldfinch accused Pascoe of maintaining close ties to Democratic trial lawyers, including former South Carolina Democratic Party chairman and Sen. Dick Harpootlian.

Pascoe highlighted his role in expanding and prosecuting a Statehouse corruption investigation that led to charges against a Republican political operative and six GOP legislators. Goldfinch raised $325,000 in restitution payments Pascoe’s office received from five businesses and state agencies during that investigation, an arrangement the South Carolina Supreme Court questioned in 2020. Pascoe said he was required to accept the money and returned it to the state for other ethics investigations.

Pascoe repeatedly referred to Goldfinch as “stem cell Steve,” citing a 2013 federal case involving an employee of a company Goldfinch owned. Goldfinch was never indicted, and the case was dismissed in 2017, according to court records.

“He has no prosecutorial experience other than when he was indicted for harvesting stem cells,” Pascoe said. “He is not qualified to be attorney general.”

Goldfinch did not directly address those claims during the debate. He defended his experience as a military attorney and repeatedly accused Pascoe of lying. Pascoe responded by calling Goldfinch a “RINO,” or Republican in name only.

All three candidates said they would move quickly to retry Alex Murdaugh after the South Carolina Supreme Court overturned his murder convictions this month because of what the justices called “shocking jury interference” by the court clerk.

They also agreed on stricter enforcement against people in the country illegally, resisting what they described as federal overreach, limiting referrals to private law firms, and changing South Carolina’s judicial selection process.

Medical marijuana produced the clearest disagreement. Pascoe said it helps some patients and welcomed the U.S. Justice Department’s move to reschedule cannabis. Stumbo said, “I believe the medical marijuana bill now is just a Trojan horse for recreational use, and I oppose it.” Goldfinch, who voted for medical marijuana legislation in 2022 and 2024, did not give a yes-or-no answer, saying unregulated hemp-derived THC products are already widespread.
Hawaii

Man charged in seal case barred from Hawaii beaches

If convicted, he faces up to one year in prison on each count, supervised release, fines under each statute, and special assessments.

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A 38-year-old Washington man accused of throwing a large rock at an endangered Hawaiian monk seal in Lahaina was barred from Hawaii beaches before trial after pleading not guilty Wednesday to two federal misdemeanor charges.

U.S. Magistrate Judge Rom A. Trader released Igor Mykhaylovych Lytvynchuk on a $25,000 unsecured bond and restricted his travel to Oahu and Washington state. Trader also ordered that Lytvynchuk is “not permitted to access or frequent any beaches, nor shall you approach or attempt to approach any marine wildlife, while in the District of Hawaii.”

Lytvynchuk surrendered his passport after his arrest outside Seattle on May 13. His next court appearance, a status conference, is scheduled for June 9. He may appear by video at future hearings, Trader said.

Federal prosecutors charged Lytvynchuk by information Tuesday with violating the Endangered Species Act and the Marine Mammal Protection Act, both Class A misdemeanors.

According to a federal affidavit, witness video recorded shortly after 10:30 a.m. May 5 showed Lytvynchuk holding a large rock and “aiming and throwing it directly at the monk seal.” The rock landed in the water and “narrowly missing the seal’s head,” according to court records, causing the animal to change direction.

The affidavit said that after witnesses told Lytvynchuk law enforcement had been called, he said he did not care because he was “rich enough to pay the fines.” Authorities said he was vacationing in Lahaina and declined to speak with officers.

Through his attorney, Sean P. Fitzsimmons, Lytvynchuk has said he did not intend to harm the seal and did not know Hawaiian monk seals are endangered.

National Oceanic and Atmospheric Administration Fisheries said Hawaiian monk seals are protected under federal and Hawaii law. The agency estimates there are about 1,600 monk seals, found only in the Hawaiian archipelago.

No state charges had been filed in connection with the incident as of Wednesday.