Morning Headlines - Tuesday, Jan. 28, 2025

Start your day informed with today’s must-read headlines from around Wisconsin and the world. And don’t forget to check out our Meme of the Day at the end for a little humor to go with your news!

U.S. and World Headlines

Trump Administration Directs Widespread Pause Of Federal Loans And Grants

The Trump administration late Monday directed federal agencies to pause the disbursement of loans and grants while the government conducts a review to ensure spending aligns with President Trump’s agenda.

A memo issued by acting director of the Office of Management and Budget (OMB) Matthew Vaeth directs federal agencies to temporarily pause “all activities related to obligation or disbursement of all Federal financial assistance.”

What Is DeepSeek? The Ai Chatbot Is Topping App Store Charts

China-based AI app DeepSeek, which sits atop the app store charts, made its presence widely known Monday by triggering a sharp drop in share prices for some tech giants.

Shares of Nvidia, the top AI chipmaker, plunged more than 17% in early trading on Monday, losing nearly $590 billion in market value. The tech-heavy Nasdaq plummeted 3.5%.

The DeepSeek chatbot, known as R1, responds to user queries just like its U.S.-based counterparts.

DeepSeek A 'Wake-Up Call' For Us Tech Firms, Trump Says

US President Donald Trump has called the rise of Chinese company DeepSeek "a wake-up call" for the US tech industry, after the emergence of its artificial intelligence (AI) model triggered shockwaves on Wall Street.

Shares in major tech firms such as Nvidia fell sharply, with the chip giant losing almost $600bn in market value.

What has shaken the industry is DeepSeek's claim that its R1 model was made at a fraction of the cost of its rivals - raising questions about the future of America's AI dominance and the scale of investments US firms are planning.

Trump Signs Executive Order Taking Aim At DEI Programs In The Military

President Trump signed an executive order Monday ending diversity programs in the nation's military.

The directive was among a series of executive orders the White House released Monday night that sought to reshape the country's armed forces. Trump also signed executive orders tasking Pentagon officials with reviewing its policy on transgender troops and reinstating many service members who were dismissed for refusing the coronavirus vaccine.

Google Says It Will Change Gulf Of Mexico To ‘Gulf Of America’ In Maps App After Government Updates

Google said it will change the name of the Gulf of Mexico to “Gulf of America” and change Denali to “Mount McKinley.”

President Donald Trump signed an executive order requiring the names to be changed on official maps and federal communications.

In posts on X, Google said it will follow the government’s lead by changing the names on its Maps app.

Wisconsin Headlines

Republicans Propose Constitutional Amendment To Limit Wisconsin Governor's Partial Veto Power

Republicans want voters to curb the uniquely expansive partial veto powers that Wisconsin governors from both parties have enjoyed for nearly a century.

Wisconsin is the only state where governors can partially veto spending bills by striking words, numbers and punctuation to create new meaning or spending amounts. In most states, governors can only eliminate or reduce spending amounts.

Wisconsin Man Sentenced To 15 Months’ Imprisonment For Paying Healthcare Kickbacks

Mohammed Kazim Ali was sentenced to 15 months’ incarceration for paying healthcare kickbacks in violation of the Anti-Kickback Statute. Ali was also ordered to pay over $2.2 million in restitution to Medicaid and Medicare as well as a $75,000 fine.

Ali and his co-defendant, Justin Hanson, owned a Milwaukee-area clinical laboratory called Noah Associates. According to court records, beginning in 2017, Ali and Hanson engaged in a three-year-long scheme to pay kickbacks to the owner of a Milwaukee substance use treatment clinic in exchange for referrals of Medicaid and Medicare patients for urine drug testing performed by Noah Associates. Ali and Hanson paid over $400,000 in kickbacks to procure the tests. The tests, however, were not ordered by any physician and were not medically necessary for the treatment of patients. After one physician learned that his credentials were being used without his authorization to order the tests, the physician told Ali to stop. Ali nonetheless continued to have Noah Associates accept and bill the government for tests falsely ordered under that physician’s credentials for months. As a result of the scheme, Medicaid and Medicare paid Noah Associates over $2.2 million for the unnecessary tests. Ali personally received over $800,000 from Noah Associates during the scheme.

Former Wisconsin Chancellor Fired Over Porn Films Sues In Hopes Of Teaching Again

A former University of Wisconsin-La Crosse chancellor fired over his involvement in the adult entertainment industry filed a federal lawsuit Monday in hopes of getting reinstated as a professor at the campus.

Joe Gow’s story has garnered national attention both for the salaciousness of a high-profile university official making pornographic movies and publicly talking about it, and for the questions it raises about free speech rights.

Universities of Wisconsin spokesperson Mark Pitsch declined to comment on the lawsuit, saying only that the system doesn't comment on pending litigation.

Sen. Baldwin Calls On Trump To Take Action To Combat China’s Shipbuilding Dominance

U.S. Sen. Tammy Baldwin is calling on the Trump administration to take action to curb China’s dominance in the shipbuilding industry, saying a new government report confirms the country’s use of unfair trade practices.

This month, the U.S. Trade Representative released the findings of an investigation into China’s shipbuilding industry. The report found that China’s dominance in shipbuilding displaces foreign firms, decreases opportunity for market-oriented businesses and reduces supply chain resilience.

Wisconsin Family Files Federal Lawsuit Against Pharmacy Chain And PBM Over Son’s Death

A Wisconsin family has filed a federal lawsuit over their 22-year-old son’s death.

The cost of Cole Schmidtknecht’s asthma inhaler was raised from $65 to over $500. His parents said Cole chose rent over medicine. Days later, Cole suffered a severe asthma attack and died from cardiac arrest.

“It’s going to be a battle for sure,” Michael Trunk, a lawyer representing the Schmidtknechts, said.

Trunk, a partner at Kline & Specter, alleged OptumRx and Cole’s pharmacy, Walgreens, are at fault in Cole’s death.