Your commute could get even worse

Transportation chief Anthony Foxx warns that the federal government is going to delay payments for state projects fixing highways and bridges next month.

WASHINGTON (CNNMoney)

The nation's top transportation chief warned governors in all 50 states this week that the federal government will start delaying payments for projects that are currently underway to fix the nation's roads and bridges.

The federal Highway Trust Fund, which finances transportation projects, is about to run out of money.

If Congress doesn't act by Aug. 1, the Department of Transportation will trim and postpone payments to states. That could lead to interruptions in highway construction late this summer, according to the Committee for a Responsible Federal Budget.

"People will see it in traffic and they'll see it in the condition of our roads," said Transportation Secretary Anthony Foxx at a breakfast with media on Tuesday. "I think they'll see it in our lack of authority to fix our bridges and to put new capacity in place that this country needs."

Related: Should you pay a higher gas tax?

The highway fund gets its money mostly from the federal gas tax, but it has been spending more than it takes in for the past decade. So Congress has periodically transferred money from general U.S. tax revenue into the fund -- a total of $54 billion so far.

Starting Aug. 1, the federal agency will have less than $4 billion in its trust fund and will stop making "same-day" reimbursements to states that are improving highways and bridges, the agency warned.

States will instead get money in two installments in August -- some on Aug. 11, and then again two weeks later when gas tax revenue comes in, according to the letters.

At the end of August or early September, the fund will reach zero. And if there's no bill by Sept. 30, even if the highway fund has gas tax money, it will have no power to spend it, Foxx said.

Related: Deficit expected to be even lower

Foxx couldn't put a specific number on how many projects will be halted, because the decision rests with state governors and local transportation agencies.

There's bipartisan support for improving transportation infrastructure, since it's good for the economy. Better roads and rails mean less wasted time, safer travels and efficiency for trucks and freight trains delivering vital goods across the country.

And infrastructure improvement projects can mean hundreds of thousands of jobs.

So what's the hold up?

Lawmakers don't agree on how much money is needed or where to find it.

Lots of ideas have been proposed. But as yet, there's no common ground in sight.

First Published: July 2, 2014: 3:08 PM ET

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Facebook still won't say 'sorry' for mind games experiment

NEW YORK (CNNMoney)

In her first public statement on the matter, Facebook Chief Operating Officer Sheryl Sandberg said that the outrage over the company's controversial study was all a big misunderstanding.

"This was part of ongoing research companies do to test different products, and that was what it was. It was poorly communicated," said Sandberg at an Indian Chambers of Commerce event in New Delhi on Wednesday. "And for that communication we apologize. We never meant to upset you."

Internet users were angry earlier this week when Facebook (FB, Tech30) revealed that it intentionally made a subset of its users less happy during a week in 2012. As part of the study, Facebook changed the mix in the News Feeds of almost 690,000 users. Some people were shown more positive posts, while others were shown more negative posts.

In an interview with India's NDTV Wednesday, Sandberg reiterated that the company was sorry for the lack of transparency -- but not for the study itself.

"We clearly communicated really badly about this, and that we really regret," Sandberg said.

Related: Facebook treats you like a lab rat

When pressed if Facebook plans on apologizing, Sandberg came closer to offering a mea-culpa, but still didn't quite get there.

"Facebook has apologized, and certainly never wants to do anything that upsets users -- and particularly for communicating really badly."

But has Facebook really apologized for conducting the mood manipulation study itself? Not quite.

The Facebook researcher who designed the experiment, Adam D. I. Kramer, said in a post Sunday that he was sorry for the way the study was presented and for the uproar it caused.

"I can tell you that our goal was never to upset anyone," Kramer wrote. "I can understand why some people have concerns about it, and my coauthors and I are very sorry for the way the paper described the research and any anxiety it caused. In hindsight, the research benefits of the paper may not have justified all of this anxiety."

Related: Internet outraged by Facebook's 'creepy' mood experiment

Facebook's official statement didn't come close to apologizing. In fact, the company defended the study as a way to "improve our services and to make the content people see on Facebook as relevant and engaging as possible."

"We carefully consider what research we do and have a strong internal review process," a Facebook spokesman said in a statement. "There is no unnecessary collection of people's data in connection with these research initiatives and all data is stored securely."

Facebook did not respond to a request for a comment on whether the company plans on apologizing for the study itself.

First Published: July 2, 2014: 3:48 PM ET

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20 million watch final USA World Cup match

The popularity of soccer on TV underscores the sport's growing popularity among Americans.

NEW YORK (CNNMoney)

Nielsen ratings released on Wednesday showed that ESPN's telecast of the match averaged 16.5 million viewers in the United States, which was second only to the USA-Portugal match on June 22. That earlier match holds the distinction of being the most-watched men's soccer match in the United States ever.

Univision's Spanish-language telecast of USA-Belgium averaged 5.1 million viewers.

Related: The future of media

The viewership totals are incomplete because Nielsen does not measure any viewing at bars, restaurants, offices, or other out-of-home locations.

The totals are impressive nonetheless, and they reflect soccer's growing popularity among the American people.

Online streaming also adds to the totals. ESPN said that its live stream via the WatchESPN app averaged 1.1 million viewers during the match. "WatchESPN also averaged 3,500,000 unique viewers and 190,200,000 minutes viewed during the match, both records for the platform," the network said in a press release.

Overall, the 56 World Cup broadcasts to date on ESPN and its sibling channels have averaged 4.1 million viewers a piece, up 44 percent from the 2010 cup and up 122 percent from the 2006 cup, the network said.

First Published: July 2, 2014: 5:45 PM ET

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Hobby Lobby ruling won't actually impact small biz

NEW YORK (CNNMoney)

On Monday, the Supreme Court ruled that "closely-held" for-profit corporations (those that are majority owned by five or fewer people) can be granted religious exemptions from certain contraceptive coverage (such as IUDs and the morning-after pill) required under the Affordable Care Act.

Hobby Lobby is by no means a small business -- it has nearly 600 stores and some 13,000 employees. But the Supreme Court's description of "closely held" companies calls into question how far the ruling might extend.

Seventy-eight percent of small businesses are family-owned, according to LIMRA, an insurance trade research firm -- but only 2% of small businesses have 50 or more employees. This is key to the Hobby Lobby decision because any business with fewer than fifty employees is already exempted from the health insurance mandate under the Affordable Healthcare Act.

Of that 2%, businesses would have to prove a "sincere" religious belief in order to be exempt. While it's unclear how the sincerity will be tested (or how many businesses might make this claim), it's unlikely to be in most companies' best interests to go that route.

Related: Hobby Lobby does invest in birth control

The actual cost of the contraception to employers is relatively minimal. According to 2011 report from the Actuarial Research Corporation (which used data from 2010) the corporation's estimated annual cost, as part of an insurance plan, is $26 per enrolled female. This amount includes all contraception, like standard birth control pills, which was not disputed in the Hobby Lobby case.

"From a purely economic perspective, [unintended pregnancies are] going to cost me and my insurance provider a lot more than birth control costs," said Jim Houser, owner of Hawthorne Auto Clinic in Portland, Ore., and executive board member of the Main Street Alliance.

He employs eleven workers -- four of whom are women -- and provides them with complete coverage despite not being legally obligated to do so.

"But, that's not my decision to make," added Houser. "Businesses have absolutely no business being involved in the personal relationships of any employee -- especially with a woman and her doctor."

Related: Who will be affected by Hobby Lobby ruling?

Houser isn't the only one questioning the Supreme Court's decision. Laurie Sobel, senior policy analyst with the Kaiser Family Foundation, said there are still a lot of questions that need to be answered by the Department of Health & Human Services: How will the new exemption be enforced? Will companies self-certify (as nonprofits do) or will there be some sort of test to determine the sincerity of a company's religious beliefs?

There are also serious concerns about what this might mean for businesses that object to other aspects of health coverage. Justice Ruth Bader Ginsberg raised many of them in her vehement opposition.

"Would the exemption...extend to employers with religiously grounded objections to blood transfusions (Jehovah's Witnesses); antidepressants (Scientologists); medications derived from pigs, including anesthesia, intravenous fluids, and pills coated with gelatin (certain Muslims, Jews, and Hindus); and vaccinations ?" she wrote.

"The court, I fear, has ventured into a minefield," Ginsberg added.

Correction: An earlier version of this article misstated the contraceptive coverage allowed under religions exemptions.

First Published: July 1, 2014: 6:37 PM ET

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Who will be affected by Hobby Lobby ruling?

The Supreme Court decision on whether employers must provide contraceptive coverage could affect more than just Hobby Lobby.

NEW YORK (CNNMoney)

But nobody seems to know how far.

The ruling applies to "closely held for-profit corporations," a small subset of employers, Justice Samuel A. Alito Jr. wrote for the majority. But in a dissenting opinion, Justice Ruth Bader Ginsburg suggests the impact will be far broader.

"Although the court attempts to cabin its language to closely held corporations, its logic extends to corporations of any size, public or private," she said.

"Closely held" commonly refers to a company owned by a few insider shareholders, rather than publicly traded giants such as IBM or Bank of America.

But government statisticians don't keep track of companies that way.

"I've never seen data on how many closely held businesses there are out there," says Paul Fronstin, a senior researcher with the Employee Benefit Research Institute.

Nor is it clear that the court's idea of closely held is the same as other definitions. For tax purposes, the IRS says a company is closely held when five or fewer shareholders control at least half the stock — as long as it's not a law firm, architectural shop or other professional practice.

But the court, which makes no reference to the IRS regulation, seems to understand closely held another way.

The decision applies to "corporations like Conestoga, Hobby Lobby and Mardel," the companies involved in the case, Alito wrote.

What do those companies have in common? They are "closely held corporations, each owned and controlled by members of a single family," he said.

Related: How Hobby Lobby decision may affect you

The case hinged on whether regulation of corporations can impinge on the religious convictions of their owners. For retailer Hobby Lobby and the other plaintiffs, Alito argued, the company and the owners are virtually the same.

At Conestoga, a maker of cabinet components, the Hahn family exercises "sole ownership of the closely held business; they control its board of directors and hold all of its voting shares," he wrote. "One of the Hahn sons serves as the president and CEO. The Hahns believe that they are required to run their business 'in accordance with their religious beliefs and moral principles.'"

Such one-family companies are a narrow slice of the IRS' definition of closely held. At many companies the tax agency considers closely held, not all shareholders are related.

Even Walmart, the retailing giant with publicly traded stock, seems to fit the IRS definition of closely held. A few Walton family members own more than half the shares.

And closely held companies without public shares can also "be very big entities," such as Mars Inc., the family owned candy maker with 70,000 employees, said Marcia D. Greenberger, co-president of the National Women's Law Center. "So there's a question about how broad the reach of the Hobby Lobby decision is."

That will ultimately depend on how many employers decline to offer contraception based on the ruling and whether courts allow it.

"We'll have to see how broadly other corporations try to jump on the bandwagon to say, 'Me too; we don't want to provide this either,'" said Greenberger. "It opens the door for many, many lawyers to be providing all kinds of advice."

KHN Senior Correspondent Julie Rovner contributed.

Kaiser Health News is an editorially independent program of the Kaiser Family Foundation.

First Published: July 1, 2014: 5:41 PM ET

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Jamie Dimon diagnosed with cancer

NEW YORK (CNNMoney)

The prognosis from doctors is "excellent" and it was caught quickly, he wrote in a memo to colleagues and shareholders.

Dimon, 58, will receive radiation and chemotherapy treatment over the next eight weeks at Memorial Sloan Kettering Hospital in New York. Although he will curtail his traveling, the bank CEO expects to be actively working during that period.

He made the announcement just before he was about to leave on a previously scheduled trip to five European countries, said spokesman Joe Evangelisti. That trip is now canceled.

"I feel very good now and will let all of you know if my health situation changes," Dimon wrote.

Related: JPMorgan earns $5.3 billion despite legal woes

Dimon previously was president of Citigroup, then chairman and CEO of Bank One Corporation. He joined JPMorgan (JPM) in 2004 through a merger and was named CEO and president in 2006. He successfully steered the bank through the economic downturn.

He was criticized for his handling of the $6 billion London Whale trading loss. The bank had to pay about $1 billion in fines to U.S. and UK regulators for not properly overseeing its traders related to that loss.

JPMorgan also reached a massive $13 billion settlement last fall over allegations it, and two banks it purchased, misrepresented mortgage-backed securities, which played a major role in triggering the crisis.

Dimon saw a pay cut in 2012 because of that issue, but his pay was bumped up again last year. He received $18.5 million worth of restricted stock on top of his $1.5 million base salary.

--CNNMoney's Poppy Harlow contributed to this report

First Published: July 1, 2014: 7:13 PM ET

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2 victims' families reject GM's $1 million offer and want their day in court

Brooke Melton died in 2010 when her Chevrolet Cobalt spun out of control, hit another car and rolled off the road.

WASHINGTON (CNNMoney)

Instead, they want to take GM to court.

"We want to continue with our civil case against GM (GM) and get at the truth of what happened," said Beth Melton, whose 29-year-old daughter Brooke Melton died in 2010 when her Chevrolet Cobalt spun out of control, hit another car and rolled off the road.

"We want to have our day in court," she said.

Related: GM offers victims more than $1 million

On Monday, Kenneth Feinberg, an attorney and mediator hired to craft GM's plan to compensate victims, announced that families of deceased would be eligible for as much as $1 million, and possibly more, if they were in cars that crashed due to faulty switches.

GM has acknowledged only 13 deaths linked to the faulty part -- the cars that were in head-on collisions, where air bags didn't deploy.

Brooke Melton wasn't included in the 13 because her car wasn't involved in a head-on collision.

However, Feinberg's offer extends to all families who lost loved ones in the car crashes linked to switches, no matter where they sat in the car, or if the car was hit from the side.

Families who take the compensation will lose their right to sue General Motors, Feinberg said.

That's too much to ask, Beth Melton said. Last September, she settled a lawsuit against GM. But after finding out that GM knew for over a decade that the faulty switches led to car crashes, her family wants to reopen their case.

"The deal they're offering sounds like a good one for families who have no other choices," Beth Melton said. "But it doesn't change our minds about not participating."

Related: GM victims' families face tough choices

The families of Natasha Weigel, 18, and her friend Amy Rademaker, 15, both of whom died from car crash injuries in October 2006, after their Chevy Cobalt hit a tree in St. Croix County, Wisconsin, are also weighing their decision.

Natasha also wasn't originally counted by GM on their list of 13 deaths because she was in the backseat, which lacked an airbag.

Even so, Ken Rimer, Natasha's step father, said he and his wife Jayne Rimer will probably also pass on the $1 million deal being offered by GM.

"We're looking at the loss of her life, and a million dollars, that's a little concerning," said Ken Rimer. "I understand it's a starting point. . . .but I don't see this as something we'd take advantage of."

Several other families, including Amy Rademaker's mother Margie Beskau, said they plan to thoroughly review the details of the compensation being offered.

Daryl Chansuthus said she was also thinking it all over. Her 25-year-old daughter, Hasaya "Seyde" Chansuthus, died when her Chevy Cobalt hit a tree in 2009. The airbag failed to deploy.

"I appreciated Feinberg's openness," Chansuthus said. "But I'm still questioning: How do you do this? Can anything compensate the loss of someone you love?"

While she wants to finish dealing with GM about her daughter's death "sooner rather than later," she plans to talk to her attorney before making any decisions.

First Published: June 30, 2014: 2:31 PM ET

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General Motors recalls 8.4 million vehicles

NEW YORK (CNNMoney)

The automaker on Monday announced six new recalls involving more than 8.4 million vehicles worldwide, most of those for faulty ignition switches. The majority are in the U.S.

The sum of vehicles recalled Monday amount to the company's largest single day of recalls this year. In addition to the ignition switch recalls, the automaker is recalling vehicles for faulty wiring and fasteners.

The latest vehicles recalled are connected to three fatalities, seven crashes and eight injuries, GM said. It said there "is no conclusive evidence that the defect condition caused those crashes."

GM (GM)'s recalls have led the industry to recall more U.S. vehicles in the first six months of this year than any full year before. This recall brings General Motors' U.S. total in 2014 to more than 27 million, approaching the 30.8 million industry-wide record set in 2004.

Related: GM's culture blamed for current crisis

GM alone has recalled more than 10% of the nearly 253 million vehicles IHS automotive says were on the road at the beginning of this year.

Worldwide, the automaker has recalled nearly 30 million vehicles this year.

The automaker also announced it is adding $500 million to the charge against second-quarter earnings it is taking for recalls, bringing the total to $1.2 billion.

Related: In just six months, automakers pass recall record

Monday's ignition switch recalls include several models predominately from the late 1990s and early 2000s:

• 1997-2005 Chevrolet Malibu
• 1998-2002 Oldsmobile Intrique
• 1999-2004 Oldsmobile Alero
• 1999-2005 Pontiac Grand Am
• 2000-2005 Chevrolet Impala and Monte Carlo
• 2004-2008 Pontiac Grand Prix
• 2003-2014 Cadillac CTS
• 2004-2006 Cadillac SRX

The recall also involves:

• 2011-2014 Chevrolet Cruzes; 2012-2014 Chevrolet Sonics; and 2013-2014 Chevrolet Traxs, Buick Encores and Veranos for an issue with the engine block power heater cord.
• 2014 Chevrolet Camaro and Impala, Buick Regal, and Cadillac XTS for a fastener that may be missing.
• 2007-2011 Chevrolet Silverado HD, GMC Sierra HD equipped with an auxiliary battery because a power issue can cause a fire.
• 2005-2007 Buick Rainier, Chevrolet TrailBlazer, GMC Envoy, Isuzu Ascender and Saab 9-7x; 2006 Chevrolet TrailBlazer EXT, and GMC Envoy XL for an electrical short that can disable the power door lock and window switches.

General Motors has come under criticism for a decade-long delay in publicly revealing an ignition switch flaw that resulted in at least 13 deaths and numerous injuries. The company retained attorney Ken Feinberg to develop a victim compensation plan, which he outlined earlier Monday.

CEO Mary Barra has apologized for the delay and promised internal reforms after a review she commissioned found "a pattern of incompetence and neglect" but no evidence of a broad conspiracy to cover up the issue. Fifteen employees, including executives, were fired or left the company.

She said Monday the company has "worked aggressively to identify and address the major outstanding issues that could impact the safety of our customers."

The company is still the subject of several investigations, including a criminal probe and Congressional inquiries, and dozens of lawsuits.

Trading in GM stock was halted prior to the announcement. It resumed shortly after and ended the day down less than 1%.

First Published: June 30, 2014: 2:50 PM ET

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Chrysler recalls 696,000 minivans and SUVs

Chrysler Town & Country and the Dodge Grand Caravan minivans on the assembly line in 2007.

NEW YORK (CNNMoney)

About 525,000 of those are in the U.S., Chrysler said Monday.

In affected vehicles, the key can too easily be knocked into the "off" or "accessory" positions while the car is being driven. This deactivates the airbags, power steering and power braking.

Jarring road conditions, such as a hitting a pothole, may cause the key to move out of the "run" position.

Related: General Motors recalls 8.4 million vehicles

The new recall includes some Dodge Journey SUVs, Dodge Grand Caravans, and Chrysler Town and Country minivans that were made between Jan. 2007 and Aug. 2009. It is an expansion of a recall first issued in 2010 that included vehicles manufactured between Aug. 2009 and June 2010.

The recall comes after the National Highway Traffic Safety Administration began investigating the issue because it had received complaints of the problem.

Chrysler will notify owners about when they can take their vehicles to a dealer to be fixed. Until then, they should remove all items from their key rings, leaving only the ignition key.

A Chrysler spokesman said the automaker is unaware of any related injuries.

GM's ignition switch problem, on the other hand, is linked to at least 13 deaths and even more injuries. It led to a number of lawsuits and investigations into why the automaker did not recall the vehicles earlier.

First Published: June 30, 2014: 7:28 PM ET

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American Apparel adopts plan to prevent a takeover

NEW YORK (CNNMoney)

On Saturday, the company announced that it has adopted a one-year shareholders rights plan in an effort to prevent Charney, or any other person or group, from seizing a controlling interest in the company.

The company's "poison pill" provision kicks in once anyone purchases 15% or more of the company's outstanding stock. At that point, shareholders will be granted the right to purchase shares at $2.75 each in an effort to dilute any potential acquirer's interest.

Related: American Apparel's ousted CEO fights back!

American Apparel (APP) said the plan is in response to documents Charney filed with the Securities and Exchange Commission that expressed his "intent to acquire control or influence over the Company."

On Friday, Charney submitted a regulatory filing with the SEC announcing that he's partnering with investment firm Standard General in an effort to buy large amounts of American Apparel stock.

Charney currently owns 27.2% of the company's stock, according to the filing.

Charney was ousted as chairman earlier this month. An American Apparel director told CNNMoney the decision came after the board learned of "disturbing" information that suggested "misconduct" by Charney.

Allegations of misconduct are not new for Charney, who has faced several lawsuits claiming everything from sexual harassment to assault and battery.

Related: 6 endangered brands

Charney's lawyer Patricia Glaser sent a letter to the company's board of directors last week saying the company acted in "a manner that was not merely unconscionable but illegal."

Charney founded the company in 1998 and took the company public in 2005 at $8 per share. The shares eventually rose to nearly $17. But in recent years, American Apparel has been fighting to stave off bankruptcy.

American Apparel's stock closed Friday at 97 cents a share.

First Published: June 28, 2014: 11:42 AM ET

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