Introduction to Privatizing Weather Forecasts

As commerce secretary, Howard Lutnick oversees the U.S. government’s vast efforts to monitor and predict the weather. The billionaire also ran a financial firm, which he recently left in the control of his adult sons, that stands to benefit if President Donald Trump’s administration follows through on a decade-long Republican effort to privatize government weather forecasting.

Deadly Flooding in Texas and Budget Cuts

Deadly flooding in Texas has drawn a spotlight to budget cuts and staff reductions at the National Weather Service and the National Oceanic and Atmospheric Administration, agencies housed within the Commerce Department that provide the public with free climate and weather data that can be crucial during natural disasters.

What’s drawn less attention is how the downsizing appears to be part of an effort to privatize the work of such agencies. In several instances, the companies poised to step into the void have deep ties to people tapped by Trump to run weather-related agencies.

The Impact of Privatization on Weather Forecasting

Privatization would diminish a central role the federal government has played in weather forecasting since the 1800s, which experts say poses a particular harm for those who may not be able to afford commercial weather data. The effort also reveals the difficulty wealthy members of Trump’s Cabinet have in freeing themselves from conflicts, even if they have met the letter of federal ethics law. “It’s the most insidious aspect of this: Are we really talking about making weather products available only to those who can afford it?” said Rick Spinrad, who served as NOAA administrator under President Joe Biden, a Democrat.

Trump Nominees and Their Ties to Weather-Related Industries

Privatizing weather agencies has been an aim of Republicans. During Trump’s first presidency, he signed a bill to utilize more private weather data. Project 2025, a proposed blueprint for Trump’s second presidency that was co-authored by his budget director, calls for the NOAA to be broken up and for the weather service to “fully commercialize its forecasting operations.” Lutnick is not the only one Trump nominated for a key post with close relationships to companies involved in the gathering of weather data.

Lutnick’s Involvement with Cantor Fitzgerald

Lutnick resigned as CEO of Cantor Fitzgerald upon taking office and began the task of divesting his interests. His two 20-something sons took the reins of his financial empire. But Lutnick’s most recent ethics filing stated he was still selling his holdings in the firm. An ethics plan from February states Lutnick would request a waiver allowing him to participate in matters with a “direct and predictable effect” on his family’s business. Securities and Exchange Commission filings, meanwhile, show Lutnick is keeping his stake in Cantor close, transferring them to a son.

Ties to Weather Companies

Cantor has interests in weather and climate. It owns a controlling interest in BGC Group, which operates a weather derivatives marketplace that essentially allows investors to bet on climate risk and where hurricanes will make landfall. Lutnick also played a pivotal role in cultivating the satellite company Satellogic, which he helped take public and where he held a board seat. Cantor holds a roughly 13% stake in Satellogic, an emerging federal contractor that offers crisp images of natural disasters and weather events in real time.

Conclusion

The privatization of weather forecasting poses significant concerns, particularly regarding access to critical weather data for those who cannot afford it. The involvement of Trump nominees with ties to weather-related industries further complicates the issue, raising questions about conflicts of interest and the potential for personal gain. As the administration moves forward with its plans, it is essential to consider the implications for the public and the role of government in providing essential services.

FAQs

1. What is the proposal regarding the privatization of weather forecasting?

   • The proposal involves privatizing government weather forecasting, which could lead to companies taking over the role of providing weather data, potentially limiting access for those who cannot afford it.

2. Who are the key figures involved in the privatization effort?

   • Key figures include Howard Lutnick, the Commerce Secretary, and other Trump nominees with ties to weather-related industries, such as Neil Jacobs and Taylor Jordan.

3. What are the potential consequences of privatizing weather forecasting?

   • The potential consequences include limited access to critical weather data for those who cannot afford it, conflicts of interest among government officials, and the undermining of the government’s role in providing essential public services.

4. How does the involvement of Trump nominees with ties to weather companies affect the situation?

   • Their involvement raises concerns about conflicts of interest and the potential for personal gain, complicating the ethical landscape of the privatization effort.
5. What is the current status of the privatization plan?
   • The plan is part of a broader effort by the Trump administration to reduce the government’s role in weather forecasting, with proposals including the breakup of NOAA and the commercialization of weather service operations.