Friday, May 24, 2024

NYDOS ANNOUNCES AVAILABILITY OF $18 MILLION IN GRANT FUNDING TO SUPPORT NEW YORK’S COMMUNITY REVITALIZATION EFFORTS

 

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Smart Growth, Waterfront Revitalization and Brownfield Redevelopment Funds Available to Spark Community Growth and Development

Programs Promote Equitable, Sustainable and Resilient Development; Help Attract Jobs and Businesses; and Protect and Preserve Natural Resources

The New York Department of State announced $18 million in available funding for three signature community planning, development and infrastructure programs – Smart Growth Community Planning and Zoning Program, Brownfield Opportunity Area Program and Local Waterfront Revitalization Program. These programs, together with the Downtown Revitalization Initiative and NY Forward, form the cornerstone of the State’s economic development and community revitalization efforts. Applications for this funding are being solicited through the State’s Consolidated Funding Application. The deadline for applications is Wednesday, July 31st at 4 p.m.  

“New York State is an unparalleled leader in sustainable community development, and those revitalization efforts start right here at the Department of State,” said New York Secretary of State Walter T. Mosley. “The Department’s suite of planning, development and infrastructure programs continue to play a critical role in reaching the ambitious economic, environmental and housing goals set by Governor Hochul. We encourage communities across the State to learn more about these diverse funding opportunities and apply for any program that could benefit their area.”

These community planning and development programs are funded through the State's Environmental Protection Fund. 

Smart Growth Planning and Zoning Grant Program ($2 Million)

The Smart Growth Planning and Zoning Grant Program is offering $2 million for communities to develop local and county-wide comprehensive plans, targeted area plans and zoning ordinances.  Communities must commit to incorporating the principles of Smart Growth into their planning and zoning. Smart Growth principles include walkable, bikeable, transit-friendly streetscapes; compact, mixed-use community design; vibrant downtowns and other municipal centers; a diversity of housing options for all incomes, ages and abilities; safe, accessible public spaces; ample parks and outdoor recreational opportunities; and clean energy, among others. More information about this funding opportunity is available here.

Brownfield Opportunity Area Program ($2 million)

The Brownfield Opportunity Area (BOA) program transforms known or suspected brownfield sites from liabilities to community assets, which in turn generate and support new businesses, jobs, housing and public amenities. The program provides grants for BOA plans which, once completed, are submitted to the New York State Secretary of State for approval, or "designation." Such designated BOA plans then entitle projects that are consistent with the plan to priority funding among certain state programs and an additional 5 percent brownfield developer tax credit. The BOA program also provides grants for pre-development activities in State-designated BOAs, such as environmental, housing and economic studies, infrastructure analyses, marketing strategies, public engagement and zoning, countywide brownfield inventories and assessments, phase II environmental site assessments and regulatory updates, among others.  There are currently 74 designated BOAs in New York State. More information about this funding opportunity is available here.

Local Waterfront Revitalization Program ($14 million)

The Local Waterfront Revitalization Program (LWRP) provides grants to communities to develop  community-driven plan that cultivates a vision for their waterfront, adopts policies and local laws to guide future activities and development, and identifies land and water uses and projects to revitalize their waterfront area, improve resiliency, and establish connections to their downtowns and neighborhoods and Watershed Management Plans to protect and restore specific waterbodies and their watersheds. Once an LWRP is approved by the Secretary of State and adopted by a local community, or is substantially complete, the community can apply for implementation funds for projects that support the plan. There are currently 114 municipalities with approved LWRPs in New York State. More information about this funding opportunity is available here.

These three programs are administered by the DOS Office of Planning, Development and Community Infrastructure, which also administers the Governor’s Downtown Revitalization Initiative (DRI) and NY Forward program. Many DRI and NY Forward communities have received funding in the past from the BOA, LWRP and/or Smart Growth programs, which in turn has helped them develop and implement their successful DRI applications and Strategic Investment Plans. 

More information on all DOS funding opportunities is available here.

About the Consolidated Funding Application
The Consolidated Funding Application was created to streamline and expedite the grant application process. The CFA process marks a fundamental shift in the way State resources are allocated, ensuring less bureaucracy and greater efficiency to fulfill local economic development needs. The CFA serves as the single-entry point for access to economic development funding, ensuring applicants no longer have to slowly navigate multiple agencies and sources without any mechanism for coordination. Now, economic development projects use the CFA as a support mechanism to access multiple State funding sources through one application, making the process quicker, easier, and more productive. Learn more about the CFA here.

Governor Hochul Announces $30 Million to Expand Inpatient Psychiatric Capacity Statewide

A woman shares about her mental health in a group therapy session

State Office of Mental Health Awards Funding for Nine Community-Based Hospitals to Develop a Total of 109 New Inpatient Beds Statewide

State Funding to Aid Design, Property Acquisition, and Construction Costs

Complements the Governor’s $1 Billion Plan to Strengthen Mental Health Care

Governor Kathy Hochul announced that a total of $30 million in state funding was awarded to nine community-based hospitals to add 109 new inpatient psychiatric beds statewide. Administered by the State Office of Mental Health, these awards can be used to cover design, property acquisition, and construction costs associated with adding new inpatient beds, which is among the priorities included in Governor Hochul's landmark $1 billion plan to strengthen New York’s mental health system.

“All New Yorkers should be able to access inpatient mental health care when and where they need it,” Governor Hochul said. “These awards will provide critical capital for projects that will add new inpatient beds for psychiatric care at community-based hospitals across the state, which will help to ensure all individuals living with serious mental illness or in crisis can access the care they need to recover.”

New York City-based hospitals will receive five awards totaling $19.1 million and upstate facilities will receive four awards totaling $11.7 million. The awards include:

$19.1 Million for New York City:

  • Episcopal Health Services, $1 million; adding four beds for adults.
  • Maimonides Medical Center, $5 million; adding 20 beds for youth.
  • Montefiore Medical Center, $3.1 million; adding 21 beds for youth.
  • New York City HHC – Bellevue, $5 million; adding 12 beds for youth.
  • Richmond Medical Center, $5 million; adding 10 beds for adults.

$11.7 Million for Upstate Facilities:

  • Rome Memorial Hospital, $1 million; adding four beds for adults.
  • Claxton Hepburn Medical Center, $5 million; adding 10 beds for youth.
  • Samaritan Medical Center, $780,338; adding five beds for adults.
  • Columbia Memorial Hospital, $5 million; adding 23 beds for adults.

Article 28 licensed general hospitals and not-for-profit freestanding Article 31 psychiatric hospitals operating programs licensed or certified by OMH could apply for up to $5 million for projects to increase inpatient capacity. The funding can be used for opening new inpatient beds, including specialty psychiatric units to treat individuals dually diagnosed with mental health disorders. The funding can be used for construction, design costs, property acquisition, project administration and other related expenses, including permits and testing.

OMH Commissioner Dr. Ann Sullivan said, “Adding new psychiatric beds at community-based hospitals will help expand capacity across the state, providing better access to care for New Yorkers during a behavioral health crisis. This capital funding will help these facilities expand and grow their inpatient beds. These awards are part of Gov Hochul’s plan to transform the continuum of care for those in need of mental health services across the state.”

Governor Hochul’s landmark $1 billion plan to strengthen New York’s mental health care system has provided the funding needed to open new programs, expand effective initiatives and develop thousands of units of specialized housing to serve individuals living with mental illness. This plan is now helping to build early intervention and youth programs; expand access to behavioral health clinics and housing; and provide employment incentives for mental health care workers, while also improving insurance coverage, and adding hospital capacity so that the most seriously ill can receive the care they require.

The FY 2025 Enacted Budget continues Governor Hochul’s strong commitment to strengthening the state’s mental health care system and improving access for all New Yorkers. The budget includes $20 million to continue expanding school-based mental health clinic satellites, $19 million to provide critical care to young people outside of school environments, $33 million to build supports for individuals living with a mental illness who are involved in the criminal justice system, and $55 million to add 200 inpatient beds at state-operated psychiatric centers.

Attorney General James Secures Over $10 Million from Health Care Companies for Failing to Provide Care to New Yorkers

 

RiverSpring and ElderServe Collected Millions in Medicaid Payments for Services They Never Provided to Seniors in New York City and Surrounding Counties

New York Attorney General Letitia James announced a $10.1 million settlement with health care companies RiverSpring Living Holding Corp. (RiverSpring) and ElderServe Health, Inc. d/b/a RiverSpring at Home (ElderServe) for failing to provide vulnerable New York seniors with personalized health care services while continuing to bill New York’s Medicaid program for those services. For years, RiverSpring and ElderServe collected millions of dollars in Medicaid payments while members of the RiverSpring Managed Long Term Care Plan in New York City and Westchester, Nassau, and Suffolk counties did not receive the care they were promised. The settlement is the result of a joint investigation between the Attorney General’s Medicaid Fraud Control Unit (MFCU), and the United States Attorney’s Office for the Southern District of New York (USAO-SDNY). Under the settlement, approximately $6 million will be returned to the New York State Medicaid Program.

“Instead of caring for their vulnerable patients, RiverSpring and ElderServe used them to drain millions of dollars from Medicaid,” said Attorney General James. “New Yorkers should be able to trust that the organizations in charge of their health care are providing the services they promise, not taking advantage of them. My office will not tolerate any failure to provide proper care to vulnerable New Yorkers.” 

RiverSpring is a New York not-for-profit corporation that provides administrative support to The Hebrew Home for the Aged at Riverdale and affiliated organizations. ElderServe is a New York not-for-profit corporation that administers a Managed Long Term Care Plan (the RiverSpring MLTCP) for Medicaid beneficiaries. Services provided under the RiverSpring MLTCP are specific to each member’s needs and can include home health aide services, nurse visits, social adult day care services, and other community-based services.

An investigation by MFCU found that from 2012 to 2017, the RiverSpring MLTCP collected Medicaid payments for services it never provided to its members. In many cases, RiverSpring either did not provide its members with qualifying services or did not adequately document that the services were provided. Despite this, RiverSpring received millions of dollars in Medicaid payments for these services.

As a result of the settlement, RiverSpring and ElderServe must pay $10,159,130 to federal and state Medicaid programs. $6,095,478 of the settlement funds will be returned to New York’s Medicaid program.

The case against RiverSpring was initiated by a former employee, who will receive a portion of the settlement because the former employee filed a whistleblower lawsuit under the qui tam provisions of the federal and New York False Claims Act. This Act allows people to file civil actions under seal on behalf of the government and share in any recovery.

The investigation and settlements were the result of a coordinated effort between OAG and USAO-SDNY. Attorney General James thanks the USAO-SDNY for their partnership and assistance.

The investigation by the Attorney General’s MFCU was conducted by Senior Auditor-Investigator Emily Brissette under the supervision of Stacey Millis, Chief Auditor of MFCU’s Civil Enforcement Division. MFCU Lead Data Scientist Si Lok Chao provided data analytics assistance. The case was investigated by Assistant Attorney General Anthony I. Giacobbe, Jr. under the direction of MFCU Civil Enforcement Division Chief Alee N. Scott. MFCU is led by Director Amy Held and Assistant Deputy Attorney General Paul J. Mahoney. The Division for Criminal Justice is overseen by Chief Deputy Attorney General José Maldonado and under the oversight of First Deputy Attorney General Jennifer Levy.

Reporting Medicaid Provider Fraud: MFCU defends the public by addressing Medicaid provider fraud and protecting nursing home residents from abuse and neglect. If an individual believes they have information about Medicaid provider fraud or about an incident of abuse or neglect of a nursing home resident, they can file a confidential complaint online or call the MFCU hotline at (800) 771-7755. If the situation is an emergency, please call 911.

MFCU’s total funding for federal fiscal year (FY) 2023 is $65,717,936. Of that total, 75 percent, or $49,288,452, is awarded under a grant from the U.S. Department of Health and Human Services. The remaining 25 percent, totaling $16,429,484 for FY 2023, is funded by New York state. Through MFCU’s recoveries in law enforcement actions, it regularly returns more to the state than it receives in state funding.

Operators Of Nationwide Sports And Pokémon Trading Card Fraud Arrested

 

Damian Williams, the United States Attorney for the Southern District of New York, and James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of an Indictment charging ANTHONY CURCIO, a/k/a “Brendan Wooley,” and IOSIF BONDARCHUK, a/k/a “Joe Bondarchuk,” with conspiracy to commit wire fraud and wire fraud.  The charges arise from the defendants’ fraudulent scheme to defraud buyers and marketplaces to purchase sports and Pokémon trading cards at false and inflated prices by misrepresenting that low-to-mid grade cards had received high-grade ratings from a reputable card authentication company (“Company-1”), thereby causing victims to pay more money for the cards than they otherwise would have.  CURCIO and BONDARCHUK were arrested and are expected to be presented before a U.S. Magistrate Judge in the Western District of WashingtonThis case is assigned to U.S. District Judge Ronnie Abrams. 

U.S. Attorney Damian Williams said: “As alleged, Anthony Curcio and Iosif Bondarchuk carried out a brazen, nationwide fraud scheme involving valuable sports and Pokémon trading cards to deceive buyers and marketplaces, ultimately amassing over $2 million in fraudulent and attempted salesCurcio and Bondarchuk allegedly sold and tried to sell at inflated prices cards of various professional athletes, including, among others, Michael Jordan, Tom Brady, Nolan Ryan, Larry Bird, Julius Erving, and Magic Johnson, as well as various valuable Pokémon cardsThanks to our law enforcement partners, the dedicated prosecutors of this Office, and the many victims who came forward, this alleged fraud has had its last danceOur message today is clear: no matter what product you’re selling, if you try to deceive the public to make money, you will be brought to justice.” 

FBI Assistant Director in Charge James Smith said: “For over two years, Anthony Curcio and Joe Bondarchuk allegedly manipulated common-level trading cards to fraudulently inflate the retail price from its true market value by assigning false validity grades, resulting in more than $2 million in victim losses.  This alleged scheme not only damages the reputation of a respectable authentication company, but the defendants’ alleged actions also betray the trust and wallets of avid collectors.  The FBI will continue to investigate all fraudulent behavior, especially those who seek to exploit the good faith of companies and consumers.”

According to the allegations in the Indictment:[1]

From at least 2022 to May 2024, CURCIO and BONDARCHUK sold and attempted to sell fraudulent sports and Pokémon trading cards to victims across the country.  In total, CURCIO and BONDARCHUK attempted to deprive victims of over $2 million through their sales and attempted sales by misrepresenting the grade of numerous trading cards.

Sports and Pokémon trading cards containing the images of professional athletes and Pokémon can have considerable resale value depending on, among other things, their condition and authenticity.  Company-1 is a prominent card authenticator and grader.  For a fee, it verifies a card’s authenticity, assesses its condition, and assigns it a numerical grade from one to 10, with one being the lowest grade and 10 being the highest grade.  The grade assigned is reflective of the card’s comparative market value.  After grading a card, Company-1 seals the card in a distinctive, tamper-resistant plastic case that encloses the card to preserve its condition and indicates its grade on an affixed label.

The card grade assigned by Company-1 significantly impacts the market value of the card.  As an example, among the cards that CURCIO and BONDARCHUK sold in connection with the scheme was a misrepresented 1986 Fleer Michael Jordan #57 rookie card (the “1986 MJ Card”).  The 1986 MJ Card graded as an 8 has an estimated market value of between $6,000 and $7,000.  But this same card, when graded as a 10 by Company-1, has had an estimated market value of between approximately $185,000 and $203,000.  In short, representations about Company-1’s grade of the card go directly to the value of the card itself and the price at which the card can be bought and sold.  In May 2022, CURCIO advertised one version of the 1986 MJ Card on an online marketplace based in Manhattan (the “Manhattan Marketplace”) for sale for the amount of $171,700, as pictured below:

card sold by the defendants

As is depicted above, CURCIO advertised the 1986 MJ Card as having a purported grade of 10 assigned by Company-1.  In truth and in fact, CURCIO knew that Company-1 had not assigned this grade to the card.  To further make it appear that the 1986 MJ Card had received a rating of 10 from Company-1, CURCIO caused a purported Company-1 label to be included in the plastic case, along with a fraudulent bar code and certification number.

Through the Manhattan Marketplace, CURCIO and BONDARCHUK sold various cards at inflated prices by falsely claiming the cards had been assigned higher ratings by Company-1 than was true. 

CURCIO and BONDARCHUK also sold and attempted to sell fraudulent cards at in-person card shops, auctions, and card shows.  CURCIO further sold and attempted to sell fraudulent cards through other online platforms using third-party sellers.

When victims demanded refunds and confronted CURCIO and BONDARCHUK, including by showing them confirmations from Company-1 that they had misrepresented the grade of the cards they were selling, CURCIO and BONDARCHUK feigned ignorance and often refunded the victims.  Yet, after being put on notice that the cards’ grades and labels were fraudulent, CURCIO and BONDARCHUK repeatedly attempted to, and did, sell these very same cards to subsequent victims, again with fraudulent labels showing an inflated grade from Company-1.

Among the fraudulent cards that CURCIO, BONDARCHUK, and others sold and attempted to sell are a 1999 Pokémon Venusaur card and a 1999 Pokémon Charizard card, pictured below.

cards sold by the defendants

In July 2023, as part of a law enforcement undercover purchase of the above fraudulently misrepresented 1999 Pokémon Venusaur card for $10,500—a card which BONDARCHUK had previously attempted to sell on an online marketplace—CURCIO mailed the card to the undercover law enforcement purchaser in Manhattan after the undercover purchaser wired the money to a CURCIO-controlled bank account.

CURCIO and BONDARCHUK repeatedly used fake names and identities in order to conceal their involvement in the fraudulent scheme.  For example: after a victim complained to BONDARCHUK about his sales of fraudulent cards, including a Tom Brady rookie card, a John Elway rookie card, and various Michael Jordan cards, BONDARCHUK gave the victim CURCIO’s phone number but falsely told the victim that the phone number belonged to another individual who, in reality, was a leader of the Hells Angels motorcycle ring.  After another victim complained to BONDARCHUK about his sales of fraudulent cards, including a 1968 Topps Nolan Ryan/Jerry Koosman rookie card, BONDARCHUK gave the victim CURCIO’s phone number but this time falsely told the victim that the phone number belonged to someone named, “John Steel.”

Last month, in April 2024, at a card show in New Jersey, CURCIO gave a business card to a potential victim buyer, falsely claiming to be “Brendan Wooley” and listing, among other identifiers, a phone number and LinkedIn page purportedly belonging to “Brendan Wooley.”  In truth and in fact, CURCIO—and not “Brendan Wooley”—created and operated the LinkedIn page and controlled the phone number.

In furtherance of the fraud, CURCIO ordered from an online marketplace various items needed to create forged card cases and labels.  The items included various card grading cases, thermal transfer barcode labels, a magnifier loupe optical glass, a handheld inkjet printer, a lock-cutting kit, an electric grinding pen, an abrasive buffer and polishing wheel, an abrasive and bristle brushes, and drill bits designed for engraving.

CURCIO, 43, of Redmond, Washington, and BONDARCHUK, 37, of Lake Stevens, Washington, are each charged with one count of conspiracy to commit wire fraud and one count of wire fraud, each of which carries a maximum sentence of 20 years in prison. 

The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.

Mr. Williams praised the investigative work of the FBI. 

This case is being handled by the Office’s Illicit Finance and Money Laundering Unit.  Assistant U.S. Attorneys David R. Felton and Kingdar Prussien are in charge of the prosecution.

The charges contained in the Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.

[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment constitute only allegations, and every fact described should be treated as an allegation.

United States Reaches Over $310 Million Settlement with Norfolk Southern to Address Harms Caused by East Palestine Train Derailment

 

Settlement Requires Norfolk Southern to Pay for Past and Future Cleanup Costs, Enhanced Rail Safety, Civil Penalty and Health Monitoring, Among Other Provisions

The Justice Department and Environmental Protection Agency (EPA) announced a settlement valued at over $310 million with Norfolk Southern Railway Company holding the company accountable to address and pay for the damage caused by the Feb. 3, 2023, train derailment in East Palestine, Ohio. If the settlement is approved by the U.S. District Court for the Northern District of Ohio, Norfolk Southern will be required to take measures to improve rail safety, pay for health monitoring and mental health services for the surrounding communities, fund long-term environmental monitoring, pay a $15 million civil penalty and take other actions to protect nearby waterways and drinking water resources.

Together with other response costs and rail safety enhancements, Norfolk Southern estimates that it will spend more than $1 billion to address the contamination and other harms caused by the East Palestine derailment and improve rail safety and operations.

In the hours following the derailment, EPA personnel arrived on site and they have remained there to ensure that the people of East Palestine are protected and have the most up-to-date information. In those early days, EPA Administrator Michael S. Regan promised that Norfolk Southern would be held accountable for its actions. Since then, as EPA and the Justice Department pursued a strong enforcement action to deliver on that commitment, EPA has continued to stay engaged in the community, directing cleanup activities, collecting air, water and soil samples and participating in community meetings. The Administration has led a robust, multi-agency effort – including the Department of Transportation, the Federal Emergency Management Agency and the Department of Health and Human Services – to fulfill the President’s commitment to “supporting the people of East Palestine and all those affected in surrounding areas of Ohio and Pennsylvania every step of the way.”

“The President issued an executive order which promised to address the disaster’s long-term effects and to hold Norfolk Southern responsible for its train derailing and the burning of hazardous chemicals in East Palestine. This settlement helps fulfill that promise,” said Acting Associate Attorney General Benjamin C. Mizer. “Importantly, those who will most directly benefit from this settlement are those who were most directly affected by the disaster. And the rail safety commitments will help prevent future catastrophic railway events.”

“No community should have to experience the trauma inflicted upon the residents of East Palestine,” said EPA Administrator Michael S. Regan. “That’s why President Biden pledged from the beginning that his Administration would stand with the community every step of the way. Today’s enforcement action delivers on this commitment, ensures the cleanup is paid for by the company, and helps prevent another disaster like this from happening again. Because of this settlement, residents and first responders will have greater access to health services, trains will be safer, and waterways will be cleaner.”

“The human cost from the Norfolk Southern train derailment disaster was high and continues today,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “That is why we worked to include funding in this agreement for a community health program. Notably, this settlement also secures significant resources to complete cleanup in and around East Palestine as well as measures to detect and address potential rail safety risks.”

“Norfolk Southern’s train derailment and massive chemical spill onto East Palestine’s grounds and into its waterways jeopardized the safety and health of residents, damaging their homes, their lives and the environment,” said U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio. “That is why the Department of Justice diligently worked to hold Norfolk Southern responsible for this disaster by quickly filing suit and negotiating a resolution that protects residents’ interests.  This settlement requires Norfolk Southern to fund a community health program that monitors and treats individual medical needs stemming from the disaster. It also requires the company to fund the clean-up efforts, to restore the region’s waterways and habitats, and to monitor the drinking water system to ensure it is safe. And it requires them to implement numerous additional safety measures throughout the United States in an effort to prevent another railway community from suffering losses like those East Palestine experienced. While these remedies cannot fully address the impact of this disaster, they are a positive step toward healing and recovery.”

Today’s settlement follows a complaint filed by the United States against Norfolk Southern in March 2023 for unlawful discharges of pollutants and hazardous substances caused by the train derailment. In February 2023, EPA issued a unilateral administrative order, holding Norfolk Southern accountable for the damage done to the community. The order required cleanup of spilled substances and impacted soils, as well as payment of all costs to the U.S. government. EPA also issued an order under the Clean Water Act to clean up oil spilled into the surrounding waterways. Since then, EPA has been directing and overseeing the extensive cleanup activities.

In total, Norfolk Southern estimates that it will spend more than $1 billion to address the contamination caused by the East Palestine derailment and improve rail safety and operations. The amount includes this settlement with the United States valued at over $310 million, as well as around $780 million in environmental response costs incurred by Norfolk Southern. Norfolk Southern has estimated its costs since the derailment will exceed $200 million in rail safety enhancements, including those required by this settlement.

To help ensure that no community goes through what East Palestine residents have faced, the settlement also requires Norfolk Southern to improve coordination with government officials and other stakeholders during emergency responses. Specifically, Norfolk Southern will create and adopt a procedure for coordinating with first responders and government officials, where appropriate, before restoring and reopening tracks for use after a derailment involving spilled hazardous material. Norfolk Southern will also create and adopt a procedure for coordinating with government officials and other stakeholders in advance of any vent and burn proposed by the company.

Under the settlement, Norfolk Southern has agreed to:

  • Spend an estimated $235 million for all past and future cleanup costs, so that cleanup efforts can continue and the company, rather than taxpayers, covers the cost.
  • Pay $25 million for a 20-year community health program that includes medical monitoring for qualified individuals, mental health services for individuals residing in affected counties as well as first responders who worked at the site and a community facilitation plan to assist community members in using the benefits of the program.
  • Spend approximately $15 million to implement long-term monitoring of groundwater and surface water for a period of 10 years.
  • Pay $15 million for a private drinking water monitoring fund that will continue the existing private drinking water well monitoring program for 10 years.
  • Implement a “waterways remediation plan,” with an estimated budget of $6 million, for projects in Leslie Run and Sulphur Run that will prioritize addressing historical pollution, reducing non-point source pollution through infrastructure upgrades and stormwater management projects and restoring aquatic and riparian habitat.
  • Pay a $15 million civil penalty to resolve the alleged violations of the Clean Water Act
  • Pay $175,000 for natural resource damages, to be used by the United States to restore, rehabilitate, replace or acquire the equivalent of the natural resources injured as a result of the derailment.

In addition, the consent decree requires Norfolk Southern to undertake projects to improve the safety of transporting hazardous materials by rail, which will include installation of additional devices to detect overheated wheel bearings early enough to prevent derailments like the one that happened in East Palestine. All told, Norfolk Southern has estimated its costs dating from the derailment will exceed $200 million in rail safety enhancements.

The proposed settlement was lodged in the U.S. District Court for the Northern District of Ohio by the Environmental Enforcement Section of the Justice Department’s Environment and Natural Resources Division and the U.S. Attorney’s Office for the Northern District of Ohio. It is subject to a minimum 30-day public comment period and final court approval. The details of today’s settlement are available on the Justice Department’s website at www.justice.gov/enrd/consent-decrees.

Additional Background

EPA is committed to protecting the health and safety of East Palestine and surrounding communities. EPA personnel have been on site since the initial hours of the train derailment, and the agency continues to provide residents the most up-to-date information via the website, welcome center, community meetings, newsletters and more.

Immediately following the train derailment, EPA established a 24/7 air monitoring and sampling network. EPA also began coordinating with state and local officials to monitor environmental impacts on the community. Over the course of the response, EPA has collected over 115 million air monitoring data points and over 45,000 air, water and soil samples, giving the agency confidence in the safety of air, water and soil in the community. Since the evacuation was lifted, no sustained chemicals of concern have been found in the air.

To date, more than 177,000 tons of contaminated soil and more than 69 million gallons of wastewater have been removed from the community and work continues to remove contamination from area creeks and soil sampling at the derailment site to ensure all contamination has been remediated.

MAYOR ADAMS CELEBRATES EARLY SUCCESS OF ‘NYC TEENSPACE,’ FREE TELE-MENTAL HEALTH SERVICE FOR NYC TEENAGERS

  

6,800 Teenagers Signed Up for Service in First 6 Months, With Strong Uptake in Underserved Neighborhoods

 

Success Builds on Adams Administration’s Accomplishments Fighting to Bolster Mental Health and Protect Young People


Six months after launching “NYC Teenspace ” — a free tele-mental health service available to all New York City teenagers between the ages of 13 and 17 years old — New York City Mayor Eric Adams and New York City Department of Health and Mental Hygiene Commissioner (DOHMH) Dr. Ashwin Vasan updated New Yorkers on the program’s progress, announcing that more than 6,800 teenagers have already signed up for the service. Early data shows that 65 percent of users reported improvement in their mental health and provides valuable insight into teenagers’ reasons for seeking help. Additionally, underserved neighborhoods, including Brownsville and East New York, led the city in signups while 80 percent of users identified as Black, Hispanic, Asian American and Pacific Islander (AAPI), bi-racial, or Native American. NYC Teenspace — created in partnership with online therapy platform Talkspace — allows New York City teenagers to connect with a licensed therapist through phone, video, and text on any mobile device completely free-of-charge.

 

“With teenage anxiety on the rise, we made clear that New York City would get our young people the help they need and provide teenagers with free tele-mental health services. Six months later, the data shows our efforts are paying off, and we’ve already helped more than 6,800 teenagers get the mental health care they need through ‘NYC Teenspace,’” said Mayor Adams. “We’ve brought therapy and mental health resources to thousands of New York City teenagers, but we didn’t stop there. We filed a lawsuit to hold the companies that own five social media platforms accountable for their harmful behavior and made the right investments to put nearly 500 social workers and psychologists in our schools. While this progress is encouraging, we will keep working to meet every teenager where they are and make sure that all New Yorkers are cared for and supported.”

 

“The pandemic was tough on us all related to our mental health, but especially so for our young people. We’ve seen higher rates of anxiety and depression among our young people, made especially difficult by the challenges of growing up in a social media world,” said Deputy Mayor for Health and Human Services Anne Williams-Isom. “‘NYC Teenspace’ offers a critical tool to support young people, ages 13 to 17, on their smartphones via talk, text, or video, chat so they can engage in ways that work for them. In the first six months of this initiative, nearly 7,000 young people have signed up and four out of five users are from Black and Brown communities, which we know were some of the hardest hit during the pandemic. This initiative is just one piece of our broader family and youth mental health strategy.”

 

“We view the early results of ‘NYC Teenspace’ with pride, excitement, and humility,” said DOHMH Commissioner Dr. Vasan. “Pride, because we’ve stepped up to the challenge of our youth mental health crisis with innovative tools that teens are actually using and getting the support they need. Excitement, because of the potential to serve many more teens in need. We also look at this with humility, because we are just at the beginning of this journey in New York City, and we still have much to improve on and to learn, most importantly from young people themselves. But one thing is clear, we have torn down some obstacles to care, opened the door to mental health support using a modern approach, and teens are choosing to walk through. We’re stepping up to the challenge of our youth mental health crisis with whatever it takes, because we know we can’t afford to wait, and the cost of inaction is too high.”

 

“Student safety and well-being, including emotional well-being, remains a top priority for New York City Public Schools. ‘NYC Teenspace’ has positively impacted so many of our children and highlights how important accessible services like this are for our community,” said New York City Department of Education Chancellor David C. Banks. “In addition to the robust set of mental health supports already available to our students, we remain committed to working with our agency partners at DOHMH to ensure our young people are fully supported and set up for long-term success, inside and outside of our classrooms.”

 

“The success of ‘NYC Teenspace’ mirrors what Mayor Adams and I heard at youth town halls again and again — that mental health is one of the top two concerns of our city’s young people,” said New York City Department of Youth and Community Development Commissioner Keith Howard. “Teens living in communities with high rates of violence and trauma need free, accessible mental health services, and the early numbers show we are reaching those young New Yorkers and helping them on the road to healing.”

 

“I am deeply encouraged by the early success of ‘NYC Teenspace.’ This initiative demonstrates our city’s dedication to prioritizing the mental well-being of our young people. With over 6,800 teenagers already signed up for this service, and a significant majority reporting positive improvements in their mental health, it underscores the urgent necessity for such resources,” said Mayor’s Office of Community Mental Health Executive Director Eva Wong. “I am particularly heartened to see the strong uptake in low-resourced neighborhoods and among diverse racial and ethnic groups. This tells us that we are reaching those who may have previously faced barriers to accessing mental health services.”

 

NYC Teenspace provides young people with valuable resources to bolster mental health, including a coping skills toolkit, and access to a licensed therapist by phone, video calls, or messaging sessions, giving teenagers control over how they engage. The virtual setting takes place on a secure, Health Insurance Portability and Accountability Act- (HIPAA) compliant platform and is designed to reduce barriers to care.

 

The city and Talkspace designed the service with direct input from New York City teenagers, convening focus groups to best understand their mental health needs and to build a platform that is as useful and responsive as possible to those using the platform. By leveraging telehealth tools, this approach also reduces physical and financial burdens for young people.

 

Early results show that between the program’s November 15, 2023 launch and April 1, 2024:

  • 6,800 teenagers signed up for NYC Teenspace.
  • Nearly 60 percent of NYC Teenspace users identified as Black or Hispanic.
  • Eighty percent of users identified as Black, Hispanic, AAPI, bi-racial, or Native American.
  • Neighborhoods that led the city in signups are:
    • 11212 - Brownsville (Brooklyn)
    • 11208 - East New York (Brooklyn)
    • 11236 - Canarsie (Brooklyn)
    • 10456 – Morrisania (Bronx)10467 – Norwood (Bronx)
  • Teenage girls were more likely to seek help. Almost 70 percent of users identified as female, compared to roughly 23 percent who identified as male.
  • More than half exclusively engaged with their therapist via messaging.
  • Early results showed 65 percent of users already reported an improvement, with this group growing steadily.

The most frequently cited reasons teenagers gave for using the platform included: feeling down or depressed, improving relationships (which was first among girls), becoming their best self, anxiety (which was first among boys), and difficulties at home or school. When it came to engaging in therapy, more than 42 percent of users utilized both live video sessions and messaging. Four percent of users engaged in live video sessions only, while 54 percent exclusively used messaging.

 

DOHMH and Talkspace are actively working with partners across government and on the ground to promote NYC Teenspace. Representatives have connected with members of the school community and with partner agencies that work with young people outside of school settings.

 

NYC Teenspace comes at a critical moment for teenage mental health. According to DOHMH’s data from 2019, 36 percent of New York City high schoolers reported feeling so sad or hopeless almost every day for at least two weeks during the past 12 months that they stopped doing their usual activities; that figure rose to 38 percent in 2021. Latino and Black students were significantly more likely than white students to report feeling sad or hopeless.

 

The launch and early success of NYC Teenspace delivers on a key commitment from Mayor Adams’ “Care, Community, Action: A Mental Health Plan for New York City,” released in March 2023. Mayor Adams has made mental health — including youth mental health — a key focus of his administration. In addition to his mental health plan and the launch of NYC Teenspace, the Adams administration has filed a lawsuit to hold the owners of five social media platforms — TikTok, Instagram, Facebook, Snapchat, and YouTube — accountable for helping to fuel the nationwide youth mental health crisis and force tech giants to change their behavior.

 

Alongside the Adams administration’s focus on mental health, Mayor Adams also launched “HealthyNYC,” an ambitious plan to extend the average lifespan of all New Yorkers. HealthyNYC addresses the greatest drivers of premature death and sets bold targets to extend the average life expectancy of New Yorkers to 83 years by 2030, with gains across racial and ethnic groups. HealthyNYC aims to accomplish this by expanding access to culturally responsive mental health care and social support services, including early intervention for communities of color and LGBTQIA+ youth, and addressing the impact of social media on youth mental health and suicidal ideation to reduce suicide deaths.

 

“We are excited about the first few months’ results, as they indicate that we are reaching teens where they are, on their phones, and delivering health care to communities that have been traditionally hard to reach,” said Jon Cohen, M.D., CEO, Talkspace. “The early data suggest that the majority of teens engaged on the platform are already demonstrating clinical improvement. In addition, we are particularly proud that we have successfully intervened on multiple occasions to assist teens in navigating difficult situations to avoid a potentially adverse outcome.”