By MATT OTT, Associated Press Business Writer

WASHINGTON (AP) — U.S. applications for unemployment benefits fell last week, remaining in the historically healthy range of the past couple years.

The Labor Department reported Thursday that jobless claims for the week ending July 5 fell by 5,000 to 227,000, fewer than the 238,000 that analysts forecast. Applications for unemployment aid are viewed as representative of layoffs.

Last week, the Labor Department reported that U.S. employers added a surprising 147,000 jobs in June, yet another sign that the American labor market continues to show resilience despite uncertainty over President Donald Trump’s economic policies. The job gains were much bigger than expected and the unemployment rate ticked down 4.1% from 4.2% in May. Analysts had forecast that unemployment would rise to 4.3%.

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Though the job market is broadly healthy by historical standards, some weakness has surfaced as employers contend with fallout from Trump’s policies, especially his aggressive tariffs, which raise prices for businesses and consumers. Most economists believe they make the economy less efficient by reducing competition. They also invite retaliatory tariffs from other countries, hurting U.S. exporters and potentially driving businesses to freeze hiring or cut staff.

The deadline on most of Trump’s stiff proposed taxes on imports were extended again until Aug. 1. Unless Trump reaches deals with other countries to lower the tariffs, economists fear they could act as a drag on the economy and trigger another bout of inflation.

Companies that have announced job cuts this year include Procter & Gamble, Workday, Dow, CNN, Starbucks, Southwest Airlines, and Facebook parent company Meta.

Last week, Microsoft announced that it is laying off about 9,000 workers, its second mass layoff in months and its largest in more than two years.

In June, Google confirmed that it had offered buyouts to another swath of its workforce in a fresh round of cost-cutting.

The Labor Department’s report also said that the four-week average of claims, which evens out some of the weekly volatility, fell by 5,750 to 235,500.

The total number of Americans collecting unemployment benefits for the week of June 28 rose by 10,000 to 1.97 million. That’s the most since November of 2021.

By HOLLY RAMER and MIKE CATALINI, Associated Press

CONCORD, N.H. (AP) — A federal judge in New Hampshire will hear arguments Thursday on whether to certify a class-action lawsuit that would include every baby affected by President Donald Trump’s restrictions on birthright citizenship.

The lawsuit, filed on behalf of a pregnant woman, two parents and their infants, is among numerous cases challenging Trump’s January order denying citizenship to those born to parents living in the U.S. illegally or temporarily. Represented by the American Civil Liberties Union and others, the plaintiffs are seeking to have their case certified as a class action and to block implementation of the order while litigation continues.

“Tens of thousands of babies and their parents may be exposed to the order’s myriad harms in just weeks and need an injunction now,” lawyers for the plaintiffs wrote in court documents filed Tuesday.

FILE – Mairelise Robinson, a U.S. citizen who is 6 months pregnant, attends a protest in support of birthright citizenship, outside of the Supreme Court in Washington, May 15, 2025. (AP Photo/Jacquelyn Martin, File)

At issue is the Constitution’s 14th Amendment, which states: “All persons born or naturalized in the United States and subject to the jurisdiction thereof, are citizens of the United States.” The Trump administration says the phrase “subject to the jurisdiction thereof” means the U.S. can deny citizenship to babies born to women in the country illegally, ending what has been seen as an intrinsic part of U.S. law for more than a century.

“Prior misimpressions of the citizenship clause have created a perverse incentive for illegal immigration that has negatively impacted this country’s sovereignty, national security, and economic stability,” government lawyers wrote in the New Hampshire case. “The Constitution does not harbor a windfall clause granting American citizenship to … the children of those who have circumvented (or outright defied) federal immigration laws.”

Legal battles continue in multiple states

Several federal judges have issued nationwide injunctions stopping Trump’s order from taking effect, but the U.S. Supreme Court limited those injunctions in a June 27 ruling that gave lower courts 30 days to act. With that time frame in mind, opponents of the change quickly returned to court to try to block it.

New Jersey and the more than dozen states joining its case in Massachusetts federal court have asked the judge to determine if the nationwide injunction in their case could still apply under the high court’s ruling. The judge has scheduled a hearing for July 18.

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“Everybody knows there’s a 30-day clock, so our hope is that we get an answer prior to the end of the 30-day clock,” New Jersey Attorney General Matt Platkin told The Associated Press in a recent interview.

In a Washington state case before the 9th U.S. Circuit Court of Appeals, the judges have asked the parties to write briefs explaining the effect of the Supreme Court’s ruling. Washington and the other states in that lawsuit have asked the appeals court to return the case to the lower court judge.

As in New Hampshire, the plaintiff in a Maryland seeks to organize a class-action lawsuit that includes every person who would be affected by the order. The judge set a Wednesday deadline for written legal arguments as she considers the request for another nationwide injunction from CASA, a nonprofit immigrant rights organization.

Ama Frimpong, legal director at CASA, said the group has been stressing to its members and clients that it is not time to panic.

“No one has to move states right this instant,” she said. “There’s different avenues through which we are all fighting, again, to make sure that this executive order never actually sees the light of day.”

New Hampshire plaintiffs include parents, babies

The New Hampshire plaintiffs, referred to only by pseudonyms, include a woman from Honduras who has a pending asylum application and is due to give birth to her fourth child in October. She told the court the family came to the U.S. after being targeted by gangs.

“I do not want my child to live in fear and hiding. I do not want my child to be a target for immigration enforcement,” she wrote. “I fear our family could be at risk of separation.”

Another plaintiff, a man from Brazil, has lived with his wife in Florida for five years. Their first child was born in March, and they are in the process of applying for lawful permanent status based on family ties — his wife’s father is a U.S. citizen.

“My baby has the right to citizenship and a future in the United States,” he wrote.

Catalini reported from Trenton, New Jersey.

By MORGAN LEE, SUSAN MONTOYA BRYAN and ROBERTO E. ROSALES, Associated Press

RUIDOSO, N.M. (AP) — The mountain village of Ruidoso returned to the grim rituals of rebuilding after flash flooding and a deadly natural disaster, just one year after wildfire and intense flooding reshaped the popular vacation getaway and its surroundings.

Broken tree limbs, twisted metal, crumpled cars and muddy debris remained as crews worked to clear roads and culverts in the wake of Tuesday’s flash flood that killed three people — including two children — and significantly damaged as many as 50 homes, with one home carried away entirely.

Tracy Haragan, a Ruidoso native on the verge of retirement, watched from his home as a surging river carried away the contents of nine nearby residences.

“You watched everything they owned, everything they had — everything went down,” he said. “It is such a great town, it just takes a tail-whipping every once in a while. … We always survive.”

An intense bout of monsoon rains set the disaster in motion Tuesday. Water rushed from the surrounding mountainside, overwhelming the Rio Ruidoso and taking with it a man and two children from an RV park along the river. The bodies were found downstream during search and rescue efforts.

The children — a 4-year-old girl and a 7-year-old boy — had been camping with their parents when they were swept away. The father and mother were being treated for injuries at a hospital in Texas, according to officials at Fort Bliss, where the father is stationed.

Mayor Lynn Crawford said hearts are broken over the lives lost and stomachs are in knots as residents begin to take stock of the damage.

Rebuilding — again

A popular summer retreat, Ruidoso is no stranger to tragedy. It has spent a year rebuilding following destructive wildfires last summer and the flooding that followed.

Rebuilding again in Ruidoso will be hard, if not impossible, said Riverside RV Park owner Barbara Arthur.

Arthur says her guests scrambled up a nearby slope when the river started coursing through the site Tuesday afternoon. She also lost her home in flood.

It was the sixth time the river rose in the last several weeks and by far the worst, she said. And Tuesday’s rainfall was more than could be absorbed by the hillsides and canyons within a wildfire burn scar.

Setting records

The floodwaters of the Rio Ruidoso rose more than 20 feet (6 meters) on Tuesday to set a record high-water mark, said National Weather Service meteorologist Todd Shoemake in Albuquerque. That eclipsed the previously recorded high in July 2024 by nearly 5 feet.

About 3.5 inches of rain fell over the South Fork burn scar in just an hour and a half, Crawford said. As little as a quarter of an inch of rain over a burn scar can cause flooding.

“They were probably already getting some runoff from upstream before it even actually started raining on top of the wildfire burn scar,” Shoemake said. “It really was just kind of a terrible coincidence of events that led to that.”

He likened the intense rainfall to a 100-year storm, which has a 1% chance of happening in any given year.

Cleanup begins

Emergency crews completed dozens of swift water rescues before the water receded Tuesday. Two National Guard teams and several local crews already were in the area when the flooding began, said Danielle Silva of the New Mexico Department of Homeland Security and Emergency Management.

New Mexico Gov. Michelle Lujan Grisham requested a presidential disaster declaration, tallying more than $50 million in emergency response expenditures, including water rescues, and damage to public infrastructure, including toppled bridges and washed out roadways. The estimate includes flood damage at Ruidoso and beyond from monsoon rainstorms since late June.

Ruidoso has also recently requested $100 million in federal aid to convert flood-prone private land to public property after successive years of violent flooding laid bare the dangers of an expanded flood plain.

The floods at Ruidoso came just days after flash floods in Texas killed at least 120 people and left more than 160 people missing.

Bracing for more

Local officials said the village, as the flood hit, was still in the process of replacing outdoor warning sirens destroyed in last year’s wildfire and reassessing risks along the local flood plain.

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Crawford reiterated Wednesday that Ruidoso will continue to be in the crosshairs with each monsoon, as there’s still work to do to recover from the wildfire. The rainy season begins in June and runs through September.

The river, meanwhile, is running thick with sediment that can settle and raise future water levels.

The village’s tourism-based economy also has been thrown into turmoil again. With floodwaters running through Ruidoso Downs, one of the horse track’s signature races that was scheduled to start Friday has been derailed.

The mayor said people are anxious as the monsoon is sure to bring more rain throughout the summer.

“Yesterday was a good lesson — you know, that Mother Nature is a much bigger, powerful force than we are,” he said Wednesday. “And that we can do a lot of things to protect ourselves and to try to help direct and whatever, but we cannot control.”

Lee reported from Santa Fe, New Mexico, and Bryan from Albuquerque. Associated Press writers Matt Brown in Denver and Christopher L. Keller in Albuquerque contributed to this report.

By MATTHEW LEE, Associated Press Diplomatic Writer

KUALA LUMPUR, Malaysia (AP) — U.S. Secretary of State Marco Rubio and his Russian counterpart met Thursday in Malaysia as tensions between the countries rise over Moscow’s increasing attacks on Ukraine and whether Russia’s leader is serious about a peace deal.

Rubio and Foreign Minister Sergey Lavrov held talks in Kuala Lumpur on the sidelines of the annual Association of Southeast Asian Nations Regional Forum, which brings together 10 ASEAN members and their most important diplomatic partners including Russia, China, Japan, South Korea, European nations and the U.S.

The meeting lasted around 50 minutes. Rubio was seen winking at Lavrov afterward as reporters shouted questions, which they both ignored.

U.S. Secretary of State Marco Rubio, front, arrives at Subang Air Base, outside of Kuala Lumpur Thursday, July 10, 2025. Rubio arrived in Malaysia to attend the ASEAN Foreign Ministers’ Meeting. (Mandel Ngan/Pool Photo via AP)

The meeting was their second encounter since Rubio took office, although they have spoken by phone several times. Their first meeting took place in February in Riyadh, Saudi Arabia, as the Trump administration sought to test Russia and Ukraine on their willingness to make peace.

Thursday’s meeting occurred shortly after the U.S. resumed some shipments of defensive weapons to Ukraine following a pause, ostensibly for the Pentagon to review domestic munitions stocks, that was cheered in Moscow.

The resumption comes as Russia fires escalating air attacks on Ukraine and as U.S. President Donald Trump has become increasingly frustrated with Russian President Vladimir Putin.

“Putin is not, he’s not treating human beings right,” Trump said during a Cabinet meeting Tuesday, explaining the pause’s reversal. “It’s killing too many people. So we’re sending some defensive weapons to Ukraine, and I’ve approved that.”

US diplomatic push could be overshadowed by tariff threats

Rubio was also seeing other foreign ministers, including many whose countries face tariffs set to be imposed Aug. 1. The tariff threat could overshadow the top diplomat’s first official trip to Asia, just as the U.S. seeks to boost relations with Indo-Pacific nations to counter China’s growing influence in the region.

Rubio sought to assuage concerns as he held group talks with ASEAN foreign ministers.

U.S. Secretary of State Marco Rubio, second left, meets with Malaysia’s Prime Minister Anwar Ibrahim, right, at the prime minister’s office at Parliament as the Association of Southeast Asian Nations (ASEAN) Foreign Ministers’ Meeting takes place in Kuala Lumpur Thursday, July 10, 2025. (Mandel Ngan/Pool Photo via AP)

“The Indo Pacific, the region, remains a focal point of U.S. foreign policy,” he told them. “When I hear in the news that perhaps the United States or the world might be distracted by events in other parts of the planet, I would say distraction is impossible, because it is our strong view and the reality that this century and the story of next 50 years will largely be written here in this region.”

“These are relationships and partnerships that we intend to continue to build on without seeking the approval or the permission of any other actor in the region of the world,” Rubio said in an apparent reference to China.

Trump notified several countries on Monday and Wednesday that they will face higher tariffs if they don’t make trade deals with the U.S. Among them are eight of ASEAN’s 10 members.

U.S. State Department officials said tariffs and trade won’t be Rubio’s focus during the meetings, which Trump’s Republican administration hopes will prioritize maritime safety and security in the South China Sea, where China has become increasingly aggressive toward its small neighbors, as well as combating transnational crime.

But Rubio may be hard-pressed to avoid the tariff issue that has vexed some of Washington’s closest allies and partners in Asia, including Japan and South Korea and most members of ASEAN, which Trump says would face 25% tariffs if there is no deal.

Rubio also met with Malaysian Prime Minister Anwar Ibrahim, who has warned global trade is being weaponized to coerce weaker nations. Anwar urged the bloc Wednesday to strengthen regional trade and reduce reliance on external powers.

Rubio’s “talking points on the China threat will not resonate with officials whose industries are being battered by 30-40% tariffs,” said Danny Russel, vice president of the Asia Society Policy Institute and a former assistant secretary of state for East Asia and the Pacific during the Obama administration.

When Anwar said “ASEAN will approach challenges ‘as a united bloc’ he wasn’t talking about Chinese coercion but about U.S. tariffs,” Russel noted.

Majority of ASEAN members face major tariff hikes

Among ASEAN states, Trump has announced tariffs on almost all of the bloc’s 10 members.

Trump sent tariff letters to two more ASEAN members Wednesday: Brunei, whose imports would be taxed at 25%, and the Philippines at 20%. Others hit this week include Cambodia at 36%, Indonesia at 32%, Laos at 40%, Malaysia at 25%, Myanmar at 40% and Thailand at 36%.

Vietnam recently agreed to a trade deal for a 20% tariffs on its imports, while Singapore still faces a 10% tariff that was imposed in April. The Trump administration has courted most Southeast Asian nations in a bid to blunt or at least temper China’s push to dominate the region.

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In Kuala Lumpur, Rubio also will likely come face-to-face with China’s foreign minister during his visit of about 36 hours.

Chinese Foreign Minister Wang Yi is a veteran of such gatherings and “fluent in ASEAN principles and conventions,” while Rubio “is a rookie trying to sell an ‘America First’ message to a deeply skeptical audience,” Russel noted.

Issues with China remain substantial, including trade, human rights, militarization of the South China Sea and China’s support for Russia in Ukraine.

U.S. officials continue to accuse China of resupplying and revamping Russia’s military industrial sector, allowing it to produce additional weapons that can be used to attack Ukraine.

Earlier on Thursday, Rubio signed a memorandum on civilian nuclear energy with Malaysia’s foreign minister, which will pave the way for negotiations on a more formal nuclear cooperation deal, known as a 123 agreement after the section of U.S. law allowing such programs.

Those agreements allow the U.S. government and U.S. companies to work with and invest in civilian energy nuclear programs in other countries under strict supervision.

Eileen Ng contributed to this report.