Subscribe to our free biweekly newsletter!

The Red Folder

Archived from January 6 2025.

Key stories for the week, brought to you by Lindsey Zhao and the Red Folder team.

Reading for the sake of reading sucks. Telling yourself to read to win a round is nice but ineffective. This condensed news brief helps you understand current domestic and international issues, analyze the news, and gives you opportunities to read more.

Publishing since January 2024.

Click here to test your knowledge of Red Folder articles with our weekly Extemp Questions!

Domestic Stories

4 key domestic stories for the week.

1) Gaetz Closed? The Ethics Report that Could Slam the Door on Matt Gaetz Ethan Foss

After nearly two months of gridlock, the House Ethics Committee has voted to release a bombshell report on Matt Gaetz’s controversial history. The investigation delves into allegations of sexual misconduct, involvement with minors, cash exchanges, illicit drug use, and violations of several House rules, promising to shed light on the Congressman’s colorful past.

On April 9, 2021, the House Ethics Committee launched an investigation into Representative Matt Gaetz (R-FL). The Committee initially reviewed the following allegations:

Engaging in sexual misconduct and/or illicit drug use.
Sharing inappropriate images or videos on the House floor.
Misusing state identification records.
Converting campaign funds to personal use.
Accepting a bribe, improper gratuity, or impermissible gift.

The investigation later expanded to include allegations that Gaetz dispensed special privileges and favors to individuals with whom he had personal relationships and obstructed government investigations into his conduct.

However, the Committee eventually walked back its investigation into the allegations concerning the House floor, state identification records, personal use of campaign funds, and acceptance of bribes or gratuities.

On November 14, 2024, Matt Gaetz resigned from the House of Representatives following his nomination by President-Elect Donald Trump. At the time of his resignation, the Committee lost jurisdiction over Gaetz’s conduct. Gaetz later withdrew himself from consideration for the role of U.S. Attorney General amid sexual misconduct allegations, stating, "I plan to be a big voice, but maybe not as an elected member of the government."

During its investigation, the House Ethics Committee found significant evidence of the following:

From 2017 to 2020, Gaetz regularly paid women for engaging in sexual activity with him.
In 2017, Gaetz engaged in sexual activity with a 17-year-old girl.
Between 2017 and 2019, Gaetz used or possessed illegal drugs, including cocaine and ecstasy, on multiple occasions.
In 2018, Gaetz accepted gifts exceeding permissible amounts, including transportation and lodging for a trip to the Bahamas.
Gaetz arranged for his Chief of Staff to assist a woman with whom he had a sexual relationship in obtaining a passport, falsely claiming she was a constituent.
Gaetz knowingly and willfully obstructed the Committee’s investigation into his conduct

The Committee’s report also stated, “Representative Gaetz was uncooperative throughout the Committee’s review. He provided minimal documentation in response to the Committee’s requests and refused to agree to a voluntary interview.” Additionally, Representative Gatez failed to appear when subpoenaed for his testimony.

Gaetz was found to have violated multiple Florida state laws, including:

In addition to state law violations, Gaetz breached multiple ethical standards:

Paragraph 2 of the Code of Ethics for Government Service: “Uphold the Constitution, laws, and legal regulations of the United States and of all governments therein and never be a party to their evasion.”
Clause 1 of the Code of Official Conduct: “A Member...shall behave at all times in a manner that shall reflect creditably on the House.”
The House Gift Rule, which prohibits accepting gifts exceeding $250 without prior approval.

Additionally, The House Ethics Report claims “Representative Gaetz continuously sought to deflect, deter, or mislead the Committee in order to prevent his actions from being exposed.”

While Gaetz’s violation of House rules, the Code of Ethics for Government Service, and the Code of Official Conduct raise ethical concerns, they are now obsolete due to Matt Gaetz’s resignation from the House of Representatives, and his departure from government service. The Ethics Report did not make any findings that Representative Gaetz violated Federal Laws, however he was found in violation of both Florida State Prostitution Laws, and Florida’s Statutory Rape Law. Despite these findings, Gaetz is unlikely to face state charges due to his connections within Florida’s public sector, and the state’s deep Republican ties. While Gaetz may not pursue elected office, opportunities remain for him to work within the public sector, particularly under the incoming Republican administration.

Some Committee members argued that the House Ethics Committee overstepped its jurisdiction by releasing the report after Gaetz’s resignation. They noted that no such report has been issued on a former member since 2006.

Dissenting members stated “Operating outside jurisdictional bounds set forth by House Rules and Committee standards, especially when making public disclosures, is a dangerous departure with potentially catastrophic consequences.”

The Gaetz report has reignited discussions about broader transparency in Congress. Representative Thomas Massie (R-KY) recently stated “Congress paid over $17 Million in hush money for sexual misconduct inside of the offices in these buildings, and what’s worse is that this was taxpayer money.” This has led to many lawmakers encouraging the release of a “congressional sexual slush fund list”. Representative Marjorie Taylor Greene (R-GA) stated “I support all the lists being released, I want to see Epstein’s list, I want to see the list of the sexual misconduct slush fund, taxpayer money was used to pay out their victims. I want to see all the lists”.

When asked about the Gaetz report specifically, she responded, “If they’re going to release one, release them all.”

The release of the Matt Gaetz report could very well mark the beginning of a new wave of accountability and transparency within Congress.

Read more here:

2) No Place Like Home—for Too Many Christina Yang

“Home sweet home” is a sentiment that is supposed to evoke feelings of warmth and belonging, yet it has become a bitter contrast far from reality for far too many people across the country. On Dec. 27, 2024, the United States Department of Housing and Urban Development (HUD) released its 2024 homeless assessment report, which revealed an 18.1% increase in homelessness nationwide---the largest increase the HUD has seen since it started tracking in 2007. To that end, these numbers reflect a culmination of numerous intensifying economic and systematic factors that need to be addressed in order to help millions achieve a sense of security and a place they can call home sweet home.

HUD Report Findings

One of the most concerning trends highlighted in the report was a 40% rise in family homelessness, with this number surmounting to be even larger in metropolitan areas such as New York City, Chicago, and Detroit. There was also a projected 33% increase in child homelessness, with the HUD finding over 150,000 children---many being unaccompanied---experiencing homelessness in one single night when they first started the January 2024 survey. What’s even more alarming is that these statistics are largely an underestimate, as they do not account for the families who are temporarily living with neighbors or relatives because they cannot afford rent. Additionally, within these estimates, about half of all people who are homeless are also working, reflecting deeper economic disparities within our society.

Driving Factors

The main issue that has driven the large increase in homelessness is the lack of affordable housing in the U.S. Housing prices have skyrocketed out of control, with a 65% increase in the cost of houses since the year 2000. As shown by the estimates above, many people who are homeless are also working, illustrating the fact that in this country you can hold down a full-time job (or even multiple) and still not be able to afford a basic building block of survival.

Natural disasters have also added fuel to the fire and contributed to the housing crisis. Most notably, the 2023 Maui wildfire was one of the most catastrophic fires in centuries and resulted in over 5,000 individuals staying in emergency shelters on the first night. With climate change worsening this record, affordable housing has become not just an economic issue, but also an environmental issue. Individuals living in more disaster-prone areas are at much greater risk for displacement and need more funding to create a sustainable solution to address these environmental vulnerabilities.

Finally, a landmark Supreme Court case was the breaking point that truly pushed this crisis over the edge. In June of 2024, the Supreme Court ruled in Grants Pass v. Johnson that outdoor sleeping bans don’t violate the Eighth Amendment. Thus, many Western states have been enforcing extra strong bans to prevent individuals from sleeping on the street, essentially criminalizing them. When more and more people have no other possible housing alternative and are faced with citations and even arrests as a result, these bans become an extremely counterproductive method to address the crisis. Ticketing someone and shoving them in jail has been found to only increase homelessness in the long run because having a convicted record makes it even harder to find a home, and prison is by no means an adequate home.

Administration Responses

The Biden administration has taken action to address these issues, and the effect may be present in next year’s HUD report. In June of 2024, Biden limited asylum claims and illegal border crossings, which led to a reduction of homelessness in larger cities. His administration has also nudged cities to loosen their restrictive zoning laws as well as boosted housing vouchers and other subsidies for homeless individuals.

In contrast, Trump has publicly stated that he will take a different approach. Trump’s administration has supported the ban on sleeping outside and has proposed a plan to shift billions of dollars in federal funding away from affordable housing and towards requiring treatment and institutions for drug addictions and mental illness. However, numerous issues do arise as hospitalizing people indefinitely against their will violates a Supreme Court ruling from 20 years ago. Thus, the feasibility of his plan still remains to be seen.

Hope in Sight

In the midst of all of these startling statistics, the HUD still reports some improvements across the country. Veteran homelessness dropped by 11% as a result of years of investment in subsidized houses and support systems. On top of that, some major cities also saw a turnaround with Dallas seeing a 16% drop in homelessness, and Los Angeles with a 5% drop after more investment in affordable housing. These small trends are the key to unlocking the door to more housing on a much larger scale as proper government investment and funding as well as bipartisan cooperation can truly ameliorate the crisis and stop the revolving door of homelessness once and for all.

Read More Here:

3) I Beg Your Pardon? Biden’s Controversial New Policy Sadie Zwonitzer

In his lame duck period, President Biden hasn’t exactly made waves. He’s hardly spoken against the new Trump Administration despite Democratic concerns for our nation and democracy, and his new plans have hardly made national news. Despite this however, President Biden has been doing something. That is, handing out pardons for both people who may be attacked by Donald Trump, and, more surprisingly, inmates on death row.

These pardons aren’t going to just anyone; they’ve been received by some high profile politicians. Take for example, New York City Mayor Eric Adams, who was recently indicted on charges of bribery, conspiracy, and wire fraud. But Adams will face no consequences, as President Biden has issued him a preemptive pardon. Another important political figure, Republican and former U.S representative Liz Cheney, is also being considered for a preemptive pardon by the President. Even though most of these pardons are for political protection in the future, some are personal. Like when President Biden pardoned his son Hunter, even though he had factually committed a crime. This shocked America and caused outrage online, almost purely due to the fact that Biden had previously promised he would not pardon Hunter if he was found guilty at trial. Biden seems to be using the last of his presidential power to protect his political allies and preserve his personal life, but he’s also using them to achieve a more succinct goal: Taking a shot at the death penalty.

President Biden has, so far, commuted the sentences of up to 37 death row inmates, meaning that instead of being executed for their crimes, their cases will be reclassified only to life in prison. Biden seems to be making a direct attack on the United States death penalty, and it’s easy to see why. There have always been American voices crying out against the seemingly inhumane punishment, but they only seem to be getting louder in light of recent events, like the execution of 55 year old Marcellus Williams, despite even the prosecution’s claims that they had reason to reverse his conviction. While the United States wrongfully convicting a man of color is unfortunately nothing new, the death penalty is largely responsible for this gross misallocation of justice, that eventually ended up taking the life of an innocent man.

President Biden, and a wider swath of American leadership, have likely observed this violation, and want to ensure it isn’t repeated. By pardoning death row inmates, Biden adopts the stance that many Americans have had for years: The death penalty is wrong. While we can’t predict who Biden will pardon next, or if they will all succeed before Jan 20, we can observe that Joe may not be so sleepy after all.

4) The Return of OpenAI Boyana Nikolova

This Friday, the US-based AI giant OpenAI announced major plans to rebuild its organization. Not only had the announcement been long-awaited by both investors and government officials, but it also confirmed to the American public that a transition within the AI industry may finally be coming.

But what exactly makes OpenAI’s restructuring so monumental? The answer comes in its very status as an organization versus a company. OpenAI was launched in 2015 as a non-profit organization (NPO,) meaning that its efforts were funded by independent sponsors from across the world and volunteers that supported the organization from within. More importantly, being an NPO implied that OpenAI’s mission was purely for the betterment of American tech society. Much like NPOs that are research and/or technology institutes, OpenAI was meant to be dedicated to developing AI, preparing for its use across the globe, and to setting a technological precedent for future innovators to follow.

Ever since 2019, however, this era of voluntarily contributing to AI research has been coming to an end. In 2019, the organization officially went from NPO to a hybrid organization, meaning it was neither wholly for-profit or not for profit. In fact, only a relatively small part of OpenAI remained as an NPO, acting as a mere branch to the rest of a for-profit firm. Even then, this form of organization wasn’t stable enough. This hybrid structure eventually contributed to an effort to remove the CEO, Sam Altman, just last year.

Thankfully for him, the new structure (that is to be implemented as soon as next year) will return stability to OpenAI and the position of whoever is CEO. OpenAI is set to become an entirely for-profit organization, marking the official end of its days as an NPO. This will mean that the rest of OpenAI’s operations will be determined not by what is most beneficial to society and their mission, but rather, to the profits they derive from them. For the people at the top of OpenAI, it will mean that they go from mere volunteers with leadership positions to some of the best-paid employees in the country. For some, like Sam Altman who is already a billionaire, this won’t be as influential as the profit they have received from investors and donations directed to specifically them (and any other for-profit projects they are involved in.)

Naturally, though, this change hasn’t happened without some serious backlash. Individuals like Elon Musk, who was one of the largest early investors in OpenAI and is a CEO of an industry competitor, have denounced the transition. For one, they have claimed that becoming a for-profit company goes against the founding charter which established OpenAI. Now, their opposition has become strong enough to become a genuine barrier to OpenAI. An ongoing lawsuit, spearheaded by Musk himself with the help of many other AI organizations, is gaining momentum.

As a whole, it’s not yet clear whether OpenAI’s return as a for-profit firm will end up distorting their original mission or if it will benefit both the company and society. Until then, America can only wait and cross its fingers that AI isn’t generating its own path to destruction.