More U.S. states deploy technology to track election hacking attempts

FILE PHOTO: A man types into a keyboard during the Def Con hacker convention in Las Vegas, Nevada, U.S. on July 29, 2017. REUTERS/Steve Marcus/File Photo

By Christopher Bing

WASHINGTON (Reuters) – A majority of U.S. states has adopted technology that allows the federal government to see inside state computer systems managing voter data or voting devices in order to root out hackers.

Two years after Russian hackers breached voter registration databases in Illinois and Arizona, most states have begun using the government-approved equipment, according to three sources with knowledge of the deployment. Voter registration databases are used to verify the identity of voters when they visit polling stations.

The rapid adoption of the so-called Albert sensors, a $5,000 piece of hardware developed by the Center for Internet Security https://www.cisecurity.org, illustrates the broad concern shared by state government officials ahead of the 2018 midterm elections, government cybersecurity experts told Reuters.

CIS is a nonprofit organization based in East Greenbush, N.Y., that helps governments, businesses and organization fight computer intrusions.

“We’ve recently added Albert sensors to our system because I believe voting systems have tremendous vulnerabilities that we need to plug; but also the voter registration systems are a concern,” said Neal Kelley, chief of elections for Orange County, California.

“That’s one of the things I lose sleep about: It’s what can we do to protect voter registration systems?”

As of August 7, 36 of 50 states had installed Albert at the “elections infrastructure level,” according to a Department of Homeland Security official. The official said that 74 individual sensors across 38 counties and other local government offices have been installed. Only 14 such sensors were installed before the U.S. presidential election in 2016.

“We have more than quadrupled the number of sensors on state and county networks since 2016, giving the election community as a whole far greater visibility into potential threats than we’ve ever had in the past,” said Matthew Masterson, a senior adviser on election security for DHS.

The 14 states that do not have a sensor installed ahead of the 2018 midterm elections have either opted for another solution, are planning to do so shortly or have refused the offer because of concerns about federal government overreach. Those 14 states were not identified by officials.

But enough have installed them that cybersecurity experts can begin to track intrusions and share that information with all states. The technology directly feeds data about cyber incidents through a non-profit cyber intelligence data exchange and then to DHS.

“When you start to get dozens, hundreds of sensors, like we have now, you get real value,” said John Gilligan, the chief executive of CIS.

“As we move forward, there are new sensors that are being installed literally almost every day. Our collective objective is that all voter infrastructure in states has a sensor.”

Top U.S. intelligence officials have predicted that hackers working for foreign governments will target the 2018 and 2020 elections.

Maria Benson, a spokesperson for the National Association of Secretaries of States, said that in some cases installations have been delayed because of the time spent working out “technical and contractual arrangements.”

South Dakota and Wyoming are among the states without Albert fully deployed to protect election systems, a source with knowledge of the matter told Reuters.

The South Dakota Secretary of State’s office did not respond to a request for comment. The Wyoming Secretary of State’s office said it is currently considering expanding use of the sensors.

(Reporting by Chris Bing; Editing by Damon Darlin and Dan Grebler)

U.S. spending bill tackles border, election security: source

FILE PHOTO: U.S. border patrol officers are pictured near a prototype for U.S. President Donald Trump's border wall with Mexico, behind the current border fence in this picture taken from the Mexican side of the border in Tijuana, Mexico

By Richard Cowan

WASHINGTON (Reuters) – A federal government spending deal being worked out in the U.S. Congress includes additional funding to boost border security, protect the upcoming elections in November and rebuild aging infrastructure, a source familiar with the negotiations said on Wednesday.

While the source said a final overall spending agreement had not been reached, other Republican and Democratic congressional aides have told Reuters that leaders plan to unveil their agreement on the $1.3 trillion spending bill later on Wednesday.

Lawmakers in the Republican-controlled Congress have until Friday night to reach a deal before a lapse would force federal agencies to suspend operations. The current plan would provide for government funding through Sept. 30, after a series of short-term funding measures implemented since last fall.

Republican leaders in the House and Senate said on Tuesday they were close to a deal and hoped to complete legislation by Friday as they worked to overcome divisions over several thorny issues such as President Donald Trump’s proposed border wall.

So far, the package provides $1.6 billion for some fencing along the U.S. border with Mexico and other technological border security efforts, the source said.

Trump had sought $25 billion for a full wall, but negotiations fell through to provide more money in exchange for protections for “Dreamers,” young adults who were brought illegally into the United States as children.

The spending plan also provides $307 million more than the Trump administration’s request for the FBI to counter Russian cyber attacks, and $380 million for U.S. states to improve their technology before November’s congressional election, according to the source.

U.S. intelligence agencies have concluded that Russia sought to meddle in the 2016 presidential election campaign, and intelligence chiefs said last month that Russia will seek to interfere in the midterm elections this year by using social media to spread propaganda and misleading reports. Russia has denied any interference.

The planned spending measure allocates $10 billion for spending on infrastructure such as highways, airports and railroads. It also includes money for the so-called Gateway rail tunnel connecting New York and New Jersey, the source said.

Trump has threatened to veto the bill if the Gateway project is included. While its funds remain, they are directed through the U.S. Department of Transportation, rather than provided directly, Politico reported.

Additionally, lawmakers’ added $2.8 billion to address opioid addiction, the source said.

One potential stumbling block includes gun-related provisions prompted by a mass shooting at a Florida high school on Feb. 14 that killed 17 students and faculty members. On Tuesday, as another shooting swept over a high school in Maryland, House Speaker Paul Ryan said lawmakers were still discussing a proposal to improve federal background checks for gun purchases.

Another issue tying up negotiations was tax treatment for grain co-ops versus corporate producers, according to Politico.

(Reporting by Richard Cowan, Susan Heavey, Lisa Lambert; Editing by Doina Chiacu, Bernadette Baum and Frances Kerry)

Congress struggles to meet deadline for government funding bill

People walk by the U.S. Capitol building in Washington, U.S., February 8, 2018. REUTERS/Leah Millis/File Photo

By Richard Cowan

WASHINGTON (Reuters) – The U.S. Congress, facing a Friday midnight deadline, toiled on Monday to finish writing a $1.2 trillion bill to fund the federal government through Sept. 30, as several thorny issues lingered, including funding President Donald Trump’s border wall.

A range of other hot-button initiatives was also slowing the unveiling of legislation that the Republican-controlled House of Representatives had aimed to make public late on Monday.

Republican lawmakers exiting a private meeting with House Speaker Paul Ryan said, for example, that there still was no decision on whether a couple of narrow, gun control-related measures could be inserted into the massive spending bill.

A Feb. 14 mass shooting at a high school in Parkland, Florida, has given impetus to a bill that would improve background checks for gun sales and another that would spend money to help schools defend themselves against gun violence but without putting new limits on weapons sales.

Republican Representative Mike Simpson, a senior member of the House Appropriations Committee, noted there was Republican opposition to the gun measures unless other steps such as expanding gun owners’ rights to carry concealed weapons across state lines were also enacted.

Simpson and other lawmakers said they did not know the fate of a move to include around $1.6 billion in funding for the border wall with Mexico, which is opposed by many Democrats and some Republicans.

“Everything that was significant is a work in progress. There is nothing defined” yet, said Republican Representative Mark Meadows, who heads the right-wing House Freedom Caucus.

Talks were expected to go late into the night.

Lawmakers were hoping to pass the “omnibus” spending bill before the start on Saturday of a two-week spring break. Doing so would put an end for six months to the possibility of any more government shutdowns by funding federal agencies for the rest of this fiscal year.

The federal government was forced to close over a weekend in January because of a similar budget battle.

POLARIZING MEASURES BEING SHELVED

With government funding running out at week’s end, several contentious items were tentatively being killed off to help speed passage of a bill that will significantly increase U.S. defense spending as well as many non-defense programs.

Several Republican lawmakers said a move had failed to renew federal subsidies to health insurers, which would help make “Obamacare” more affordable for low-income people.

Attempts to bolster the Affordable Care Act appeared to have collapsed after Republicans insisted on language that would have placed abortion prohibitions on those insurance plans and Democrats refused to go along.

“The speaker (Ryan) just said it wasn’t in there,” Meadows told reporters.

Trump discontinued the subsidy payments last year.

Trump also has threatened to veto the bill if it contains federal payments for constructing a New York-New Jersey railroad tunnel project known as the Gateway Program. Lawmakers said congressional leaders were still arguing over that money.

Three Republican House members told reporters that a separate initiative to impose an internet sales tax also appeared to be doomed.

Simpson, asked whether there were worries that the House and Senate would be unable to approve the spending bill before existing agency funds run out, said: “There’s always worries about that.”

Republican leaders were hoping to hold the House debate and votes on Wednesday, giving the Senate a couple more days to do the same before the Friday deadline. But the House timetable might have to be delayed a day, some aides and lawmakers said.

(Reporting by Richard Cowan; Editing by Peter Cooney)

U.S. factory activity jumps, construction spending unchanged

A man walks his dog past a mural depicting factory workers in the historic Pullman neighborhood in Chicago

By Lindsay Dunsmuir

WASHINGTON (Reuters) – U.S. factory activity jumped in June suggesting economic growth in the second quarter gained some steam, while construction spending held steady in May.

The Institute for Supply Management (ISM) said on Monday its index of national factory activity rose to a reading of 57.8 last month from 54.9 in May.

A reading above 50 in the ISM index indicates an expansion in manufacturing, which accounts for roughly 12 percent of the overall U.S. economy.

The ISM survey’s new orders sub-index rose to 63.5 in June from 59.5 the prior month. A measure of factory employment increased to a reading of 57.2 from 53.5 in May.

According to ISM, comments from those surveyed generally reflected expanding conditions, “with new orders, production, employment, backlog and exports all growing in June compared to May and with supplier deliveries and inventories struggling to keep up with the production pace.” Fifteen of the 18 manufacturing industries reported growth in June.

The dollar rose to a session high against a basket of currencies after the data, while the yield on the 2-year U.S. Treasury note rose to a more than eight-year high. U.S. stocks extended gains.

 

CONSTRUCTION SPENDING MIXED

Meanwhile, U.S. construction spending unexpectedly remained flat in May but federal government outlays on construction projects were the highest in more than four years.

The Commerce Department said on Monday that construction spending in May remained unchanged at $1.23 trillion. Spending in April was revised to show it declining 0.7 percent after a previously reported 1.4 percent fall.

Economists polled by Reuters had forecast construction spending rising 0.3 percent in May. Construction spending increased 4.5 percent from a year ago.

Federal government construction spending jumped 6.4 percent in May to its highest monthly level since January 2013.

The May construction spending release included revisions to data back to January 2015, the Commerce Department said.

In May, private construction spending fell 0.6 percent, the biggest decline since October 2015, after declining 0.2 percent in April. Investment in private residential construction also declined 0.6 percent, the biggest fall since July 2014, after rising 0.5 percent the prior month.

Spending on private nonresidential structures fell 0.7 percent in May, the fifth straight monthly decline.

Investment in public construction projects rose 2.1 percent in May after dropping 2.7 percent in April.

Outlays on state and local government construction projects increased 1.7 percent in May after falling 2.7 percent in April.

 

(Reporting by Lindsay Dunsmuir; Editing by Andrea Ricci)

 

Sioux chief asks protesters to disband, Trump to review pipeline decision

Veterans march with activists near Backwater Bridge just outside the Oceti Sakowin camp during a snow fall as "water protectors" continue to demonstrate against plans to pass the Dakota Access pipeline

By Ernest Scheyder and Terray Sylvester

CANNON BALL, N.D. (Reuters) – A Native American leader asked thousands of protesters to return home after the federal government ruled against a controversial pipeline, despite the prospect of President-elect Donald Trump reversing the decision after he takes office.

A coalition of Native American groups, environmentalists, Hollywood stars and veterans of the U.S. armed forces protested the $3.8 billion oil project. They said construction would damage sacred lands and any leaks could pollute the water supply of the Standing Rock Sioux tribe.

The tribe still wants to speak with Trump about the Dakota Access Pipeline to prevent him from approving the final phase of construction, Standing Rock Sioux Chairman Dave Archambault told Reuters.

“The current administration did the right thing and we need to educate the incoming administration and help them understand the right decision was made,” he said.Trump’s transition team said on Monday it would review the decision to delay completion once he takes office Jan. 20.

“That’s something that we support construction of and we’ll review the full situation when we’re in the White House and make the appropriate determination at that time,” Trump spokesman Jason Miller said at a transition team news briefing.

A Native American man stands in the snow during a march with veterans near Backwater Bridge just outside of the Oceti Sakowin camp during a snow fall as "water protectors" continue to demonstrate against plans to pass the Dakota Access pipeline adjacent to the Standing Rock Indian Reservation, near Cannon Ball, North Dakota,

A Native American man stands in the snow during a march with veterans near Backwater Bridge just outside of the Oceti Sakowin camp during a snow fall as “water protectors” continue to demonstrate against plans to pass the Dakota Access pipeline adjacent to the Standing Rock Indian Reservation, near Cannon Ball, North Dakota, U.S., December 5, 2016. REUTERS/Lucas Jackson

Archambault said nothing would happen over the winter before Trump takes power, so protesters should leave. Many had dug in for the harsh winter of the North Dakota plains, where a blizzard hit on Monday and 40 miles-per-hour (64 kmh) winds rattled tipis and tents.

“We’re thankful for everyone who joined this cause and stood with us,” he said. “The people who are supporting us … they can return home and enjoy this winter with their families. Same with law enforcement. I am asking them to go.”

It was unclear if protesters would heed Archambault’s call to leave the Oceti Sakowin camp in Cannon Ball, North Dakota.

A man stands on Highway 1806 just outside of the Oceti Sakowin camp during a snow fall as "water protectors" continue to demonstrate against plans to pass the Dakota Access pipeline adjacent to the Standing Rock Indian Reservation, near Cannon Ball, North Dakota, U.S.,

A man stands on Highway 1806 just outside of the Oceti Sakowin camp during a snow fall as “water protectors” continue to demonstrate against plans to pass the Dakota Access pipeline adjacent to the Standing Rock Indian Reservation, near Cannon Ball, North Dakota, U.S., December 5, 2016. REUTERS/Lucas Jackson

SHORT-LIVED VICTORY

On Sunday, the U.S. Army Corps of Engineers rejected an application for the pipeline to tunnel under Lake Oahe, a reservoir formed by a dam on the Missouri River.

The Army Corps said it would analyze possible alternate routes, although any other route is likely to cross the Missouri River.

The camp celebrated the decision, but some expressed concern their victory could be short-lived.

“I think this is just a rest,” Charlotte Bad Cob, 30, of the Pine Ridge Reservation in South Dakota, said on Sunday. “With a new government it could turn and we could be at it again.”

On Monday, tribal leaders and hundreds of veterans walked to Backwater Bridge, one of the focal points of the protests, and offered prayers and chanted after the victory.

Several veterans said they had no plans to leave and suspected Sunday’s decision was a ruse to empty the camp.

Veterans gather for a briefing inside of the Oceti Sakowin camp during a snow fall as "water protectors" continue to demonstrate against plans to pass the Dakota Access pipeline adjacent to the Standing Rock Indian Reservation, near Cannon Ball, North Dakota

Veterans gather for a briefing inside of the Oceti Sakowin camp during a snow fall as “water protectors” continue to demonstrate against plans to pass the Dakota Access pipeline adjacent to the Standing Rock Indian Reservation, near Cannon Ball, North Dakota, U.S., December 5, 2016. REUTERS/Lucas Jackson

The company building the 1,172-mile (1,885-km) pipeline, Energy Transfer Partners, said late on Sunday that it had no plans to reroute the line, and expected to complete the project.

The Obama administration’s decision was a “political action”, ETP said in a joint statement on Sunday with its partner Sunoco Logistics Partners.

The pipeline is complete except for a 1-mile (1.61 km)segment that was to run under Lake Oahe, which required permission from federal authorities.

The chief executive of ETP, Kelcy Warren, donated to Trump’s campaign, while the president-elect has investments in ETP and Phillips 66, another partner in the project.

As of Trump’s mid-2016 financial disclosure form, his stake in ETP was between $15,000 and $50,000, down from between $500,000 and $1 million in mid-2015. He had between $100,000 and $250,000 in shares of Phillips, according to federal forms.

(Writing by David Gaffen and Simon Webb; Editing by Toni Reinhold and Alan Crosby)

Curbs on excessive force proposed for Cleveland police

Police officer at Republican convention

By Kim Palmer

CLEVELAND (Reuters) – Cleveland police would face new limits on the use of force under proposals issued on Thursday by a group charged with monitoring the city’s police department, after a U.S. Justice Department report highlighted abuses by some of its officers.

The report came just weeks after Tamir Rice, aged 12, was shot and killed by a rookie Cleveland police officer in November 2014, triggering national outrage over another case involving a young African-American who died at the hands of police.

Rice was shot after a 911 caller reported someone waving a gun outside a city recreation center. Investigators later determined he had been in possession of a replica-type gun that shot pellets, not bullets.

Changes proposed by the Cleveland Police Monitoring Team – a group of 17 national experts and community activists – include a requirement that officers use de-escalation tactics before resorting to force, such as creating distance from the threat involved.

Officers would also be required to provide medical aid, rather than just request aid, for anyone injured after the use of force. Cleveland officers were roundly criticized for waiting eight minutes before providing first aid to the wounded Rice, who died a day after he was shot.

Cleveland police did not carry first-aid kits at the time of Rice’s death, a policy that has changed since then.

Officers would also be barred from using chokeholds or force against suspects already handcuffed under the monitoring team’s proposals, and prohibited from putting themselves in harm’s way in a manner that might then require the use of deadly force.

A Cleveland police officer who was in the path of an oncoming vehicle, after a high-speed car chase in 2013, shot the first in a barrage of 137 rounds fired by 13 officers that killed the man and woman in the car.

The proposals from the Cleveland Police Monitoring Team are still subject to public comment this month. If approved by a judge and federal officials, they would take effect sometime early next year, according to Matthew Barge, the oversight consent decree monitor.

(Reporting by Kim Palmer; Editing by Ben Klayman and Tom Brown)

U.S. Construction spending rises to 8 1/2 year high

Construction is seen on a new housing development along the riverfront in Detroi

WASHINGTON, May 2 (Reuters) – – U.S. construction spending rose to an 8-1/2-year high in March and the prior month’s outlays were revised higher, pointing to sustained strength in the sector despite a sharp downturn in spending by energy firms.

Construction spending increased 0.3 percent to the highest level since October 2007, following an upwardly revised 1.0 percent jump in February, the Commerce Department said on Monday.

Economists polled by Reuters had forecast construction spending rising 0.5 percent in March after a previously reported 0.5 percent decline in February.

Construction outlays were up 8.0 percent from a year ago.

Though February’s outlays were revised higher, construction spending for January was revised down to show a 0.3 percent drop instead of the previously reported 2.1 percent increase.

A drop in nonresidential construction investment helped to hold down economic growth to a meager 0.5 percent annualized rate in the first quarter. Much of the weakness in spending on nonresidential structures reflected relentless aggressive spending cuts in the energy sector, which is reeling from last year’s plunge in oil prices.

In March, construction spending was supported by a 1.1 percent surge in private construction, which hit its highest level since October 2007. Outlays on private residential construction increased 1.6 percent. Spending on private nonresidential structures, which also includes factories and offices, advanced 0.7 percent to the highest level since October 2008.

Public construction outlays fell 1.9 percent in March as outlays on state and local government construction projects, the largest portion of the public sector segment, declined 1.4 percent. Federal government construction spending tumbled 7.4 percent in March.

(Reporting by Lucia Mutikani; Editing by Paul Simao)