DIAMOND FOODS SUSPENDS DIVIDENDS: SAN FRANCISCO (AP) — Diamond Foods Inc. is suspending its dividend payments to stockholders under a new credit agreement.

The snack maker announced in February that it was replacing its CEO and chief financial officer after an internal investigation found the company improperly accounted for payments to walnut growers. Diamond has to restate two years of financial results as well.

On Wednesday, Diamond said it has amended its agreement with lenders to give the company access to funds through June 18. Meanwhile, Diamond will make scheduled loan payments and explore ways to strengthen its balance sheet and it must suspend dividend payments under the new agreement.

COURT WEIGHS US POWER OVER STATES IN HEALTH CASE: WASHINGTON (AP) — Congress will help pay for your roads, but your state can't lower its drinking age below 21. There's federal money for colleges, but they can't discriminate against women in the classroom or on the athletic field.

Federal cash comes with strings. Now 26 states are telling the Supreme Court that President Barack Obama's health care law has stretched an old rule too far. The new law's requirements for expanding Medicaid amount, in their view, to coercion that violates the U.S. Constitution's division of power between the national government and the states.

No lower court has sided with the state plaintiffs. But the justices have reserved time next Wednesday to hear the Medicaid issue as part of their broad review of challenges to the health care overhaul. And their decision could have implications far beyond health — for federal aid for housing, law enforcement, education and transportation.