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Waste Of The Day: Millionaire Mortgages
Authored by Jeremy Portnoy via RealClearInvestigations,
The Department of Agriculture's Section 502 loan programs help low-income families buy homes with mortgages that don't require a down payment. But in 2013, an investigation by Reuters found dozens of millionaires took advantage to purchase vacation and rental homes.
Though the millionaires later repaid their loans, the program as a whole covered $500 million in losses from defaults in 2013, or $715 million in today's money.
That's according to the "Wastebook" reporting published by the late U.S. Senator Dr. Tom Coburn. For years, these reports shined a white-hot spotlight on federal frauds and taxpayer abuses.
Coburn, the legendary U.S. Senator from Oklahoma, earned the nickname "Dr. No" by stopping thousands of pork-barrel projects using the Senate rules. Projects that he couldn't stop, Coburn included in his oversight reports.
Coburn's Wastebook 2013 included 100 examples of outrageous spending worth nearly $30 billion, including the loans for millionaires.
Search all federal, state and local salaries and vendor spending with the world's largest government spending database at OpenTheBooks.com.
Key facts: Reuters analyzed mortgage records from 2003 to 2011 and found more than 180 USDA-backed loans went to borrowers who reported annual incomes above $500,000. That was an apparent violation of the program rules. Loans were only meant for buyers whose income was not above the median income of their community.
The records showed at least 500 USDA-backed mortgages worth $500,000 or more, including more than 90 exceeding $1 million. Loans appeared in resort communities including Hyannis Port, Massachusetts, California wine country, and the "thriving seaside enclave" of Ewa Beach, Hawaii.
One retired advertising executive told Reuters he used a USDA loan to buy a house in North Carolina. "I could have bought a house another way," he said, "but this allowed us to travel, and our hope in a few years is to purchase a beach property in Surf City that we can rent out now and retire in later."
The program's definition of "rural" was also generous. Reuters found at least 51,600 mortgages worth $6 billion in cities designated as urban by the U.S. Census, including places near Los Angeles, Washington, Seattle and Austin. Another 300,000 loans worth $38 billion were located in areas that "straddled" urban and rural boundaries.
USDA said the overwhelming majority of borrowers were the low- and moderate-income families the program was intended to help. The average applicant earned about $48,000 and borrowed $131,000.
Summary: There is a place for government programs that help families who cannot otherwise afford a home, but people earning $1 million per year probably should not need help affording the down payment.
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Portable 1MW Kaleidos Microreactor Secures Critical Nuclear Fuel Deal Through 2030s
Authored by Aamir Khollam via Interesting Engineering,
Radiant has secured a long-term source of nuclear fuel for its Kaleidos microreactor, removing a potential supply hurdle as the company prepares the system for deployment.
Kaleidos transportable nuclear reactor delivery.Radiant NuclearStandard Nuclear will fabricate TRISO fuel for Radiant under an agreement covering planned Kaleidos deployments through the early 2030s. The deal gives the reactor developer a dedicated fuel supplier as its program moves toward full-scale testing and production.
Fuel availability remains a critical challenge for advanced nuclear developers. A reactor cannot reach customers without a reliable source of qualified fuel. Radiant is betting that greater control over its supply chain will help avoid that problem.
Fuel supply securedStandard Nuclear will produce fuel specifically for the Kaleidos reactor. TRISO fuel consists of uranium particles protected by several layers of ceramic and carbon materials. Advanced reactor developers have adopted the technology for its ability to contain radioactive materials within each fuel particle.
Kaleidos is a 1-megawatt microreactor designed for transport to customer sites. Each unit can operate for up to five years before refueling.
Tori Shivanandan, Radiant's president and COO, said securing fuel represents an important step toward larger-scale deployment. "Securing the fuel supply chain is a strategic advantage to deploying at scale," she said.
Radiant also plans to control the reactor's broader fuel cycle. Customers would not handle fresh or spent fuel at their locations. The company instead plans to manage fueling, refueling, and storage through its own facilities.
Reactor testing advancesKaleidos is now undergoing full-scale testing at Idaho National Laboratory's DOME facility. The Department of Energy selected Radiant through a competitive process and granted it exclusive access to the facility for one year.
Engineers will test the reactor at full scale and full power during extended runs. The campaign will use the same reactor design and fuel specifications intended for customer deployments.
Full-scale testing could reveal engineering challenges that smaller demonstrations cannot easily expose. Radiant says crews can transport Kaleidos by land, sea, or air. The reactor has a planned operating life of 20 years.
A 300,000-square-foot facility in Oak Ridge, Tennessee, will support the company's manufacturing and fuel operations. The site will handle reactor production, fueling, and fuel storage as Radiant prepares for larger deployments.
Customers already waitingEquinix has signed a commercial agreement for 20 Kaleidos units. The deal gives Radiant an early commercial pathway for its microreactor.
The company has also secured a project with the Department of the Air Force and the Defense Innovation Unit. Radiant will develop and operate a microreactor at Buckley Space Force Base under that effort. Those projects give Kaleidos potential applications across commercial infrastructure and U.S. defense facilities.
Radiant still needs to complete testing, establish repeatable manufacturing, and navigate regulatory requirements before widespread deployment can begin. The Standard Nuclear agreement resolves an important piece of that puzzle.
Radiant now has a committed fuel fabrication partner as it works to move Kaleidos from testing into production and eventual operation.
Tyler Durden Sat, 08/22/2026 - 15:10