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Army veteran sets off fireworks, starts fire outside NYC federal building, FBI says

▶ Watch Video: Veteran lit fire on steps of federal building in Lower Manhattan, investigators say

A man was arrested after the FBI and New York City Police Department said he ignited fireworks and started a fire outside a federal building in Lower Manhattan on Monday morning.

The incident happened at 8:20 a.m. outside 26 Federal Plaza, a building that houses dozens of agencies including the FBI, Immigration and Customs Enforcement, and U.S. Citizenship and Immigration Services. 

Officials identified the suspect as Andrew Arrabaca, 43, a U.S. Army veteran from Poughkeepsie with an address in Harlem.

According to a U.S. Army spokesperson, Arrabaca served in the regular Army from July 2001 to July 2004 and in the Army National Guard-New York from July 2004 to July 2005. He had no deployments and left the Army in the rank of specialist.

“He came armed with bad intentions”  

FBI New York Assistant Director James Barnacle said Arrabaca was armed with two axes, a machete, three knives, fireworks and other destructive devices.

NYPD Commissioner Jessica Tisch said the suspect ignited a bundle of fireworks before dumping flammable liquid outside the building and setting it on fire. 

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Heavy smoke was seen outside 26 Federal Plaza after an explosion caused by fireworks, sources said. 

CBS News New York

Federal agents ran up to the suspect and tackled him, and the fire department quickly put out the blaze.

“He came armed with bad intentions,” Barnacle said. “Looking to injure people and harm people.”

He described Arrabaca as an anti-ICE activist who had a small cart with him with the slogan “ICE off our streets” written on it.

“He is an anti-American, anti-government extremist,” Barnacle said.

Police sources said Arrabaca has had a previous encounter with federal agents for acting as an emotionally disturbed person but was not arrested. 

The FBI New York Joint Terrorism Task Force is investigating the incident.

Airsoft guns, commercial-grade fireworks found

The suspect was carrying two airsoft guns, according to Tisch. 

CBS News law enforcement analyst Richard Esposito described the materials as “things you might use in paintball-type events.”

Tisch said he fired several pellets into the air before he doused parts of the building in flammable liquid.

The DHS spokesperson said the man’s bag also contained a manifesto. 

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An airsoft rifle, carbon dioxide cartridges, halogen lighting and a helmet were among the items found at 26 Federal Plaza after an explosion. 

CBS News New York

Law enforcement has seized Arrabaca’s car and is working to obtain a search warrant for it.

3 minor injuries at 26 Federal Plaza, FBI says

Barnacle said three people were hurt, two of whom were government employees.

One person was grazed by the fireworks, a DHS spokesperson said. A security officer also had minor injuries after tackling the suspect. 

Video from the scene showed heavy smoke in front of the building and law enforcement arresting a man. 

New York City Mayor Zohran Mamdani called the incident “deeply disturbing.”

“My team is in touch with the NYPD, and we will support the federal investigation. Our administration will continue to ensure that every New Yorker is safe in their city — and hold accountable any who threaten that,” he wrote, in part, on social media

Young Americans have higher credit scores today than before Covid

New York (CNN) — Kelly Klein graduated from college with $100,000 in student loans that she feared would haunt her forever.“I expected I’d never pay off my student debt,” said Klein, who is 31 years old.But flash forward 10 years and Klein is now debt-free, her retirement account is flush and her credit score is pristine.“Every commission check I earned for the first six years went to paying off my debt. Every single penny,” said Klein, who is based in Nashville, Tennessee, and works as a loan officer at a community development financial institution.While millions of Americans are hurting from high prices and low hiring, new research suggests the finances of younger generations are displaying surprising resilience.Americans between the ages of 18 and 29 have higher credit scores today than they did just before Covid-19, according to FICO research shared first with CNN.Not only that, but that youngest generation’s 17-point increase in average credit scores since 2019 is the biggest among any age group FICO measured. The second biggest increase in credit scores over that timeframe was for the 30-to-44 cohort, otherwise known as Millennials.Most of the gains occurred during the initial stages of the health emergency when student loan payments were paused.Experts say younger Americans have benefited from access to better education about the importance of protecting credit scores to hold down payments later in life.“Gen Z is pretty savvy about credit. And they are more aware of credit scores, in part because there have been so many economic headwinds during their lives,” said Matt Schulz, chief credit analyst at LendingTree.‘A lot more knowledge’Overall FICO scores fell slightly between April 2025 and April 2026. However, credit scores for Gen Z are up by one point over that timeframe and roughly half have a very strong FICO score of 700 or above.Klein, who is a Millennial, said she learned valuable lessons about finance and investing from experts on social media. Klein also said she joined a free webinar on opening a brokerage account and familiarized herself with tax strategies and how to maximize credit card rewards.“We have a lot more knowledge than previous generations did. A lot of it was gate-kept, especially from women, and tailored toward men. Luckily, I feel like financial education is more available,” she said.Another factor: Younger borrowers are at or near the beginning of their credit journeys, giving them the most room to grow their credit scores. FICO said it doesn’t take into consideration age when scoring borrowers, but it does evaluate how long someone has been able to successfully make payments on time.As consumers take on different kinds of debt — moving from just credit cards and student debt to car loans and mortgages — they open themselves up to being better borrowers. That’s a key factor in determining credit scores.Schulz compared younger Americans increasing their credit scores with a new driver borrowing Mom or Dad’s car.“The first few times they might put some real restrictions on you. But if you show you can handle it over time, they might not think at all about letting you borrow the car. Credit is very similar,” Schulz said. “Having time and experience handling credit responsibly leads to credit scores being higher.”K-shaped economy is evidentMore emphasis on being responsible borrowers may help explain why, at a high level, average credit scores for younger Americans have held up better than might be expected in today’s economic environment, where high-income earners have seen their wealth grow faster than low-income earners.As of April, nearly half (49.6%) of borrowers aged 18-29 had a strong credit score of 700 or above, according to FICO. That’s up from 41.4% in April 2020.However, there are disparities beneath the surface that underscore the K-shaped economy.For instance, FICO said the score distribution for 18-29 year olds has shifted toward both higher and lower scores “rather than clustering in the middle.”In other words, high credit scores today for young people are higher than in 2019 — but so are low ones.“There’s a lot of fragmentation among Gen Z. Many of them are thriving. Some are struggling and relying on support from parents. We’re definitely seeing a K-shaped economy,” said Tommy Lee, senior director at FICO.3.2 million borrowers are behind on student debtOne pressure facing younger Americans is the spike in housing costs driven by elevated mortgage rates and record-high home prices.The average monthly mortgage payment for a first-time homebuyer is 57% higher than in 2019, according to FICO.Another arguably bigger factor is the return of student debt payments and credit bureau reporting after a Covid-era pause.As of April, about 3.2 million Americans of all ages with a student loan payment due (or 14%) had a recent delinquency (30 days or more past due) reported in the prior six months, according to FICO.Those borrowers who fell behind on their student loans and were deemed delinquent saw their FICO score decline by an average of 38 points.By contrast, another 4.9 million borrowers either resolved a delinquency or moved into another repayment status, such as starting a repayment plan. Those consumers experienced an average credit score increase of 16 points, according to FICO.Schulz, the LendingTree expert, stressed that missed payments carry severe consequences that can haunt borrowers for many years — especially when they need to get a mortgage.“It really only takes one payment 30 days or more late to really do damage to your credit score,” he said.The-CNN-Wire™ & © 2026 Cable News Network, Inc., a Warner Bros. Discovery Company. All rights reserved.
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