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McCormick defeats Trump-backed Evans in Georgia GOP House primary

Emergency room doctor Rich McCormick is projected to defeat attorney Jake Evans on Tuesday in the GOP primary runoff in Georgia’s 6th Congressional District, dealing the latest blow to former President Trump’s endorsing power in the Peach State.

The Associated Press called the race at 8:24 p.m. ET.

McCormick finished on top in a June 24 primary, beating Evans by a 20-point margin. Still, he fell short of the majority support he needed to win the nomination outright, throwing both him and Evans into a head-to-head runoff.

The runoff between Evans and McCormick centered on the pair’s Republican credentials, with both men attacking one another as insufficiently conservative. 

McCormick’s victory on Tuesday is only the latest upset for Trump in Georgia. 

The former president saw several of his endorsed candidates come up short in last month’s primaries, including former Sen. David Perdue (R-Ga.) who was defeated by incumbent Gov. Brian Kemp (R), one of Trump’s top Republican targets.

Georgia’s 6th Congressional District in Atlanta’s northern suburbs was redrawn last year to give Republicans a major advantage. McCormick will face off against Democrat Bob Christian in November, though McCormick is heavily favored to win. 

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NRA opposes bipartisan Senate gun safety bill

The National Rifle Association (NRA) has announced that it will not support the Senate gun safety legislation, saying the new bill will open the door to “unnecessary burdens on the exercise of Second Amendment freedom.” 

The association in a statement on Tuesday said it will support proposed legislation that will improve school safety, promote mental health services and help reduce violence, but will not support legislation that it claims attacks the second amendment. 

“We will oppose this gun control legislation because it falls short at every level,” the association said in its statement. “It does little to truly address violent crime while opening the door to unnecessary burdens on the exercise of Second Amendment freedom by law-abiding gun owners.”

The NRA also noted that the legislation can be abused to restrict lawful gun purchases and fund gun control measures implemented by local and state governments, adding that the bill will interfere with “our constitutional freedoms.” 

“Decisions by the Supreme Court of the United States in the Heller and McDonald cases make clear that the Second Amendment is an individual constitutional freedom,” the association concluded in its statement. “We will always fight for those freedoms – and the fundamental values we have defended for over 150 years” 

The NRA’s remarks come as the Senate plans to vote on the bipartisan gun safety legislation at the end of this week. 

The bipartisan bill, the first of its kind in nearly 30 years, will include funding for school safety resources, expanded background checks for buyers under the age of 21, incentives for states to implement their own “red flag” laws, penalties for straw purchases of firearms, and new protections for domestic violence victims. 

The bill, which came in response to the recent string of mass shootings in the U.S., is expected to pass in the Senate as 10 GOP lawmakers already signed off on the framework of the bill.  

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Collins beats out Trump-backed Jones for Georgia GOP House nod

Republican Mike Collins is projected to win the GOP nomination Tuesday to represent Georgia’s 10th Congressional District, overcoming former President Trump’s preferred candidate, former state Rep. Vernon Jones, in a primary runoff. 

The Associated Press called the race at 7:53 p.m. ET.

Collins, a trucking company owner, took the first-place spot in a June 24 primary against Jones and several other Republicans. But he fell short of the majority support needed to win the nomination outright, finishing just 4 points ahead of Jones.

Jones, a former Democrat, had previously sought the Republican nomination for Georgia governor, but dropped out of that race after Trump promised to endorse him in the 10th District contest.

Collins, meanwhile, scored the endorsement of Georgia Gov. Brian Kemp (R) last week, effectively turning the primary runoff into a proxy war between Trump and the state’s Republican chief executive.

Georgia’s 10th District heavily favors Republicans, meaning Collins’ win puts him on track to easily win the seat in November.

Collins’ win is only the latest blow to Trump’s endorsing power in Georgia. The former president threw his support behind several Republican challengers ahead of the June 24 primaries, but notched few victories.

Of particular note was Kemp’s victory in the GOP gubernatorial primary. Trump had endorsed former Sen. David Perdue (R-Ga.) in the race, but Kemp easily won renomination. 

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Kiggans wins GOP primary to face Luria in Virginia

Virginia state Sen. Jen Kiggans (R) is projected to win the Republican primary in the state’s 2nd Congressional District on Tuesday, setting up a matchup against incumbent Rep. Elaine Luria (D-Va.).

The Associated Press called the race at 7:42 p.m. ET.

Kiggans was seen as the frontrunner in the GOP primary, earning high-profile endorsements inside and outside of Virginia.

She had the support of the Congressional Leadership Fund and House GOP Conference Chair Elise Stefanik’s (R-N.Y.) E-Pac. Additionally, the GOP group Winning for Women Action Fund launched a six-figure radio and television ad buy for Kiggans last week. 

Virginia’s 2nd District includes Virginia Beach, Chesapeake, Suffolk, Isle of Wight County, Southampton County, and the Eastern Shore. 

The state senator defeated three other Republicans in the primary and is set to face off against Luria in what is seen as one of the most competitive House races in the country. The non-partisan Cook Political Report rates the race as a “toss-up.”

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What's in the Senate's 80-page bipartisan gun safety bill

Senate negotiators unveiled an 80-page bill Tuesday evening responding to the mass shootings at the Topps supermarket in Buffalo, N.Y., and the Robb Elementary School in Uvalde, Texas, capping weeks of intense negotiations.  

Sen. Chris Murphy (Conn.), the lead Democratic negotiator, is hailing the bill as the biggest breakthrough on the issue of gun violence in 30 years and predicted Tuesday it would save lives.  

Sen. John Cornyn (Texas), the head Republican in the talks, says the legislation will take guns out of the hands of people who are dangerous or break the law but won’t affect the gun rights of law-abiding citizens.  

Here’s what’s inside the package:

Enhanced background checks for people 18 to 21 

The legislation would enhance background check requirements for buyers younger than 21 who have juvenile criminal records.  

It would keep in place current law requiring the completion of a background check investigation for people between the ages of 18 and 21 within three days but would also require the National Instant Criminal Background Check System (NICS) to check state records to identify individuals with juvenile records that would disqualify them from purchasing firearms.  

But the enhanced background check requirements for buyers between 18 and 21 years old would expire on Sept. 30, 2032, requiring a future Congress to pass new legislation to extend it.  

Both the Uvalde and Buffalo shooters were teenagers.

Money for red flag laws and other intervention programs 

The bill would expand the Byrne JAG law enforcement grant program to allow states to use federal funding to implement crisis intervention court programs to reduce gun violence. States would have the flexibility to use the money to administer red flag laws to take guns away from people deemed dangerous to themselves or others.  

The money could also be used for mental health courts, drug courts, veterans courts and assisted outpatient treatment courts.  

It would set up due process protections for intervention programs.  

Cornyn explained on the floor Tuesday that if a state red flag law doesn’t include due process protections, it will not be eligible for grants.  

Closing the ‘boyfriend loophole

The legislation would suspend a person’s right to buy or possess a firearm for a period of at least five years if he or she is convicted of a misdemeanor crime of violence against a person with whom they have or have had a romantic relationship.  

A current or former romantic partner would automatically regain the right to buy or own a firearm after a period of five years has elapsed from the end of their criminal sentence. Romantic or intimate partners who are convicted of a violent crime during that five-year waiting period would not automatically regain the right to buy or own a gun.  

Under current law, individuals who are convicted of a misdemeanor crime of domestic violence against a spouse, a person with a child in common or a cohabiting partner lose their rights to purchase or possess firearms, but advocates have long lamented the so-called “boyfriend loophole” when none of those conditions apply

Children and family mental health services 

The bill grows the community mental health services pilot program, expanding Medicaid funding for certified community behavioral health clinics, allowing up to 10 new states to opt into the program every 10 years.  

It requires the Centers for Medicare & Medicaid Services to provide guidance to states on how to increase access to health care and mental health services through telehealth programs to Medicaid and Children’s Health Insurance Program enrollees.  

It also seeks to improve access to mental health service in schools by requiring the Centers for Medicare & Medicaid Services to provide states with resources to expand health programs at schools.  

Clarifying the definition of gun dealers 

The bill clarifies that people who regularly buy and sell firearms to earn profits must be registered as Federal Firearm Licensee, which would require them to run background checks for transactions.  

The language is intended to crack down on people who buy and sell large numbers of guns but intentionally avoid dealer licensing requirements.  

Cracking down on straw purchasers and illegal trafficking of firearms 

The bill would establish a new and specific criminal offense for straw purchasers and gun traffickers and establish tougher penalties, up to 15 years in prison, for people who break the law.  

The language is intended to make it easier for prosecutors to charge gun runners. Under current law, prosecutors often have to rely on charging people who illegally traffic firearms with paperwork violations.  

It would give law enforcement tools to charge people who act as middlemen for criminals and drug traffickers.  

It would direct the U.S. Sentencing Commission to adopt tougher guidelines for straw purchasers and gun traffickers.  

Senate Majority Leader Charles Schumer (D-N.Y.) and Republican Leader Mitch McConnell (R-Ky.) both praised the bill Tuesday evening.  

“This bipartisan gun-safety legislation is progress and will save lives. While it is not everything we wantthis legislation is urgently needed,” Schumer said in a statement, promising to bring the bill to the floor immediately.  

McConnell announced he would vote for the bill, likely giving it at least 61 votes and enough to overcome a filibuster.  

“For years, the far left falsely claimed that Congress could only address the terrible issue of mass murders by trampling on law-abiding Americans’ constitutional rights. This bill proves that false. Our colleagues have put together a commonsense package of popular steps that will help make these horrifying incidents less likely while fully upholding the Second Amendment rights of law-abiding citizens,” he said in a statement. 

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Bee Nguyen wins Georgia primary to take on Trump foe Raffensperger

State Rep. Bee Nguyen is projected to the Democratic nomination to take on Georgia Secretary of State Brad Raffensperger (R), according to The Associated Press.

Nguyen’s victory came in a Tuesday runoff against former state Rep. Dee Dawkins-Haigler. 

Nguyen, who has the endorsement of Georgia Democratic gubernatorial nominee Stacey Abrams, came in first in a June 24 primary, finishing nearly 26 points ahead of Dawkins-Haigler. 

But she still fell short of the majority support she needed to win the nomination outright, sending her and Dawkins-Haigler into a head-to-head primary runoff. 

Nyugen’s victory on Tuesday sets her up to face the Republican who has emerged as one of former President Trump’s top political targets. Raffensperger earned Trump’s ire after he rebuffed the former president’s pleas to help him overturn the results of the 2020 election in Georgia.

Raffensperger, who testified before the House Jan. 6 committee earlier Tuesday, overcame a Trump-backed primary challenge from Rep. Jody Hice (R-Ga.) last month. 

While Nguyen is expected to face an uphill battle in her campaign against Raffensperger, the incumbent secretary of state could run into trouble if he’s unable to rally the support of Trump’s ultra-conservative base in November. 

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On The Money — Thinking outside the box on fighting inflation

With many forces behind inflation beyond the Federal Reserve’s control, we look at some supply-side fixes to rising prices. We’ll also examine why housing prices could keep climbing and the rising odds of a recession.

But first, bookworms in New York have 500,000 reasons to be happy this summer. 

Welcome to On The Money, your nightly guide to everything affecting your bills, bank account and bottom line. For The Hill, we’re Sylvan LaneAris Folley and Karl Evers-Hillstrom. Someone forward you this newsletter? Subscribe here.

Economists look past the Fed to fight inflation

Economists are looking beyond the Federal Reserve and thinking outside the box of monetary policy for ways to fight inflation.  

With gas prices soaring, they are focusing largely — though not exclusively — on the energy industry and are increasingly coming up with ideas on how to bring down prices for consumers that cross the traditional liberal-conservative divides.  

  • Keeping consumer prices stable is a key part of the Fed’s mandate, and in the months since inflation began soaring most eyes have been focused on the central bank.  
  • But experts are also pointing to fiscal policies known as “supply-side interventions” meant to target issues in supply chains, which nearly all economists believe to be the root cause of the inflation in the wake of the pandemic.  

The Hill’s Tobias Burns breaks them down here.

HOUSING HARDSHIP

Why high housing costs could keep climbing 

Sky-high mortgage rates and a construction slowdown could push record rents and home prices even higher, further threatening housing affordability for millions of Americans.  

Economists say that rising mortgage rates should cool down the housing market’s red-hot price appreciation in the short term but are also likely to drive up rents. New construction of houses and apartments is waning, suggesting that the nation’s meager housing supply won’t improve any time soon.  

“It’s a perfect storm right now,” said National Association of Home Builders CEO Jerry Howard. “I don’t think I’ve ever seen this many red flags at one time in my entire career.”  

  • Total housing starts fell 14.4 percent from April to May, reaching a 13-month low, while construction of multifamily housing, including apartments, plummeted 23.7 percent.   
  • Home builders expect that trend to continue due to rising interest rates, global supply chain snags, higher material costs, a shortage of workers and other issues.  
     
  • Builders aren’t erecting many houses that first-time home buyers can afford, because the current environment makes it difficult for them to turn a profit on those projects.  

Those factors will put pressure on already rising rents, which surpassed $2,000 on average for the first time ever last month.  

Karl has the details here

Read more: Home sales give way as prices enter unprecedented territory

RETURN-AROUND

IRS says it’s making headway in clearing tax return backlog 

The IRS says it is climbing out from under the unprecedented stack of tax returns that piled up after the agency had to scale back its operations and close facilities in 2020 following the onset of the pandemic. 

The agency announced Tuesday that by the end of this week it will have cleared all original individual tax returns that were filed in 2021 and that didn’t contain any major mistakes. 

In getting through the 2021 backlog of around 8 million returns, the agency said it’s hit a new milestone in getting back to business as usual, according to a Treasury official. 

Tobias has more here.

RECESSION ODDS RISING

Goldman Sachs sees higher likelihood of recession in next year 

Economists from Goldman Sachs said on Monday that the probability of a recession in the next year is higher than they last previously predicted, as other executives have warned of economic uncertainty ahead. 

The economists said in a note they were raising the likelihood that there would be a recession over the next year from 15 percent the last time they weighed in to 30 percent now.  

The Hill’s Caroline Vakil tells us why.

Good to Know

President Biden is set to announce the appointment of Lynn Malerba, the lifetime chief of the Mohegan Tribe, as the first Native American to serve as U.S. treasurer.  

In a statement, the Treasury Department said that Malerba, who previously served in the department’s Tribal Advisory Committee, will also oversee the Office of Tribal and Native Affairs, a newly established office that will directly communicate with tribal nations and be the hub for tribal policy.  

Here’s what else we have our eye on: 

  • The Russian ruble hit a seven-year high against the dollar on Tuesday, nearly four months after the country invaded Ukraine. 
  • State treasurers, auditors and comptrollers in 21 states are urging the SEC to drop proposed rules that would require funds marketing investments labeled as ESG to disclose additional information to investors.

That’s it for today. Thanks for reading and check out The Hill’s Finance page for the latest news and coverage. We’ll see you tomorrow.

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Hillicon Valley — Twitter board recommends Musk bid

Twitter’s board of directors told shareholders to give the OK on Elon Musk’s offer to buy the company for $44 billion.  

Meanwhile, Democrats in the House and Senate introduced a bill that would bar tech companies from retaining data about users’ reproductive health.

This is Hillicon Valley, detailing all you need to know about tech and cyber news from Capitol Hill to Silicon Valley. Send tips to The Hill’s Rebecca KlarChris Mills Rodrigo and Ines Kagubare. Someone forward you this newsletter? Subscribe here.

Twitter tells shareholders to approve Musk deal

Twitter’s board of directors on Tuesday unanimously recommended shareholders approve Elon Musk’s bid to buy the social media company. 

The board recommended stockholders approve Musk’s $44 billion offer, stating they determined it to be fair and in the best interests of Twitter and its stockholders, according to a document filed with the Securities and Exchange Commission (SEC). 

Once the merger is complete, stockholders will be entitled to $54.20 per share, the board said.  

Speaking at the Qatar Economic Forum on Tuesday, Musk said there were still some “unresolved matters” about the deal, amplifying concerns he’s raised about the number of bots on the platform. He’s cast doubt on Twitter’s assessment that bots make up fewer than 5 percent of users. 

Read more here.

New bill aims to protect reproductive data

Rep. Sara Jacobs (D-Calif.) and Sens. Mazie Hirono (D-Hawaii) and Ron Wyden
(D-Ore.) introduced legislation Tuesday that would bar companies from retaining data about users’ reproductive health without consent.  

The bill would also give people the power to demand companies disclose and delete the data, as well as the power to sue companies for violations of the law. 

The legislation was put forward in response to a draft Supreme Court opinion leaked in May that showed the court was prepared to overturn Roe v. Wade, a decision that would trigger abortion bans or severe restrictions in a number of U.S. states. 

“This is some of the most sensitive and personal data that exists. It deserves the highest level of privacy protection that the government can provide and that’s what our bill does,” Jacobs told The Hill. 

Read more about the bill.

PRIORITIZE TECH ACCOUNTABILITY

Rep. Lori Trahan (D-Mass.) led several House Democrats in a letter urging President Biden to use the upcoming Group of Seven (G-7) leaders’ summit to prioritize international collaboration on social media accountability to address online disinformation, extremism, hate and harassment.  

In the letter sent to Biden Tuesday, the Democrats said the U.S. should “ensure it has a seat at the table” as other countries continue to roll out new requirements for tech platforms. 

“If the United States does not join these social media transparency efforts on an international level, it risks the formation and enforcement of new rules, standards, and best practices without American input,” they wrote. 

Reps. Sean Casten (D-Ill.), David Cicilline (D-R.I.) and Kathy Castor (D-Fla.) also signed the letter. 

Although Congress is discussing a “range of policy proposals” on social media accountability, the lawmakers said that “given the international nature” of most platforms it is beneficial to structure requirements in a “modular way” with consistent standards and frameworks that allows countries to have some additional requirements or approaches to enforcement. 

Read more about the letter.

BIDEN SIGNS CYBER LAWS

President Biden on Tuesday signed two bipartisan bills into law aimed at enhancing federal, state and local governments’ cybersecurity measures. 

The bills’ passage follows an increased pace of cyber incidents in recent years against government entities, including the SolarWinds hack, which involved Russian agents compromising nine federal agencies and at least 100 private sector groups. 

Biden had signed another cybersecurity bill last month that improves the federal government’s collection of data related to cybercrime. 

Read more here.

TESLA EX-EMPLOYEES SUE OVER LAYOFFS

Two former Tesla employees filed a class-action lawsuit this week against Tesla, accusing the electric automaker company of violating federal law after they say executives recently approved “mass layoffs” without giving proper notice. 

The 10-page complaint, filed by John Lynch and Daxton Hartsfield in the U.S. District Court in the Western District of Texas on Sunday, alleges Tesla violated the Worker Adjustment and Retraining Notification (WARN) Act of 1988, which requires 60 days written notice before a mass layoff. 

“Instead, Tesla has simply notified the employees that their terminations would be effective immediately,” the complaint reads. “Tesla has also failed to provide a statement of the basis for reducing the notification period to zero days advance notice. 

Read more here.

DOJ, Meta settle discriminatory advertising case

The Department of Justice (DOJ) on Tuesday said that it has reached a settlement agreement with Meta, the owner of Facebook, over allegations of discriminatory advertising on its social media platforms.  

In a statement, the DOJ said that Meta has until Dec. 31 to stop using an advertising tool for housing ads known as “Special Ad Audience” (previously called “Lookalike

Audience”) that relies on an algorithm the department has called discriminatory. 

Meta, formerly known as Facebook Inc., also has been ordered to develop a new system to address racial and other disparities caused by the use of the previous algorithm system, according to the settlement agreement. 

Read more here.

BITS & PIECES

An op-ed to chew on: Congress can do better than the Howey test for crypto regulation 

Notable links from around the web: 

State by state, some patients are losing telehealth access to doctors (NBC News / David Ingram) 

Researcher Hacks Into Backend for Network of Smart Jacuzzis (Motherboard / Matthew Gault) 

Twitter Accounts Hyped Company Seeking Covid Vaccine Trials (Bloomberg / Jeff Stone) 

Drivers’ Lawsuit Claims Uber and Lyft Violate Antitrust Laws (The New York Times / Kellen Browning and Noam Scheiber) 

Lighter click: Nate Silver’s final boss

One more thing: Airing NASA feuds

When Lori Garver was tapped by President-elect Obama to become NASA’s No. 2 official in 2009, she saw it as a chance to usher in a new era of space exploration for the U.S. and transform the agency into a more efficient bureaucracy. 

Garver, who grew up enamored with space and politics after witnessing Neil Armstrong’s historic moon landing as a child, came prepared to effect massive change. 

Instead, Garver writes in her new book “Escaping Gravity: My Quest to Transform NASA and Launch a New Space Age,” she encountered stiff pushback from lawmakers who wanted to keep existing space programs that benefited companies who contract with NASA. The resistance held the space agency and the future of space exploration back, according to Garver. 

Read more here.

That’s it for today, thanks for reading. Check out The Hill’s Technology and Cybersecurity pages for the latest news and coverage. We’ll see you tomorrow.

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States can—and must—outdo Joe Biden on policing reform

Despite running on a platform that touted police reform as a high priority, Joe Biden and Kamala Harris offered weak prospects for the prioritization of real, urgent reform during their campaign. It wasn’t until almost halfway through his term that President Biden signed an executive order he claims will advance “effective, accountable policing” and “enhance public trust and public safety.” In reality, this order merely reestablishes existing policies, at best laying a foundation for future reform—primarily at the state and local level, where most daily policing is done.

The order is correct to focus on policies like emphasizing de-escalation training, restricting no-knock entries, limiting transfer of military equipment, and improving technology and data collection. However, it does not go far beyond the scope of legislation passed by Congress nor does it egregiously overstep into state and local agencies. This is good from a separation of powers and a federalism standpoint, but leaves much to be done by states to enact true reform.

Because federal law enforcement only encompasses about 100,000 of the nearly 700,000 law enforcement officers nationwide, the bulk of policing is left untouched by the executive order, aside from federal grants outlined that agencies may apply for, tied to the enactment of certain policies. Therefore, while there is no mandate in the order on state and local police agencies, it is critical that states and localities step up to the challenge and outdo Biden on advancing lasting reform.

Such action on a state level is politically popular. In June of 2020, an Associated Press-NORC poll found that 95 percent of Americans believed police reform was in some capacity necessary. Since then, there has been a shift in public sentiment toward accomplishing this and protecting public safety through increasing, or at least not cutting, funding for police, which is an integral part of successful policing reform, because improving practices requires appropriate resources.

Some states and localities have successfully implemented important policing reform measures, including decriminalization of low-level offenses, employing pre-arrest deflection and post-arrest diversion courts, standardized use of force protocols and mandated officer use of body cameras. However, they aren’t nearly widespread enough to tackle the problems seen in communities over the past year or so effectively, namely the approximate 30 percent increase in homicide offense counts nationwide from 2019 to 2020, according to the Federal Bureau of Investigation.

A little-known but staggering statistic is that on average, police only spend about 4 percent of their time working cases that involve violent crime. Given the rise in violent crime—homicides included—across the country, effective use of police resources is critical. Often, this requires reform to ensure that officer time is being used to keep communities safe and protocols are in place to improve police-community relations that are critical to solving violent crime.

For example, a recent study from Princeton found that positive police interactions—which advanced police legitimacy in the eyes of the community—increases rates of case closure by improving the willingness of community members to work with law enforcement. Reforms contribute to police legitimacy because they help to show that police are truly there to protect and serve.

The decriminalization of low-level offenses reduces negative police encounters, body cameras increase transparency, and giving police discretion to divert low-level offenders or those struggling with mental health from the system entirely allows them to enforce the law and care for the public at the same time. Smart, public safety-focused reforms help to increase community trust in police, contribute to case closure and help reduce violence.

Additionally, the end goal of reform—less violence and protected public safety—is popular among voters as well. According to a Morning Consult poll, 78 percent of voters believe violent crime to be a major problem and 73 percent say that belief is increasing. President Biden even recently claimed that the latest primary elections prove more must be done to address violent crime and gun-related violence, calling on states and localities to invest in hiring and reforming police departments.

Although the Biden administration executive order points an arrow in the right direction, it doesn’t automatically solve the need for police reform. In order to effect real change, reduce violent crime and protect public safety, states and localities must take responsibility to ensure the 600,000 officers not covered by the executive order are held to a standard no less than “protect and serve.”

Sarah Anderson is the associate director of the Criminal Justice and Civil Liberties program at the R Street Institute. Jillian Snider is the policy director of the Criminal Justice and Civil Liberties program at the R Street Institute, an adjunct lecturer at John Jay College of Criminal Justice and a retired New York Police Department officer.

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