The infighting and backstabbing that plagued Trump’s first term have returned as a threat to his second, with deepening fissures over trade, national security and questions of personal loyalty.
The latest turmoil threatens to engulf the Pentagon, where Defense Secretary Pete Hegseth has pushed out top advisers and faces fresh controversy over sharing sensitive information about airstrikes in Yemen outside of classified channels. Hegseth on Tuesday denied that the information was classified, despite reports that it was pulled from secure communications from the head of U.S. Central Command.
Vice President JD Vance on Tuesday called for enhanced engagement with India and said that the South Asian country should buy more defense equipment and energy from the U.S. and allow Washington greater access to its market, lending momentum to an expected bilateral trade deal.
Here's the Latest:
EPA environmental justice workers face layoffs — again
Employees working in environmental justice programs will face layoffs this summer, according to a memo obtained by The Associated Press.
The memo, sent late Monday by EPA Assistant Deputy Administrator Travis Voyles, says employees in the Office of Environmental Justice and External Civil Rights and regional environmental justice divisions will be laid off as of July 31.
The layoffs are “necessary to align our workforce with the agency’s current and future needs and to ensure the efficient and effective operation of our programs,” he wrote.
About 280 employees will be laid off, and another 175 employees were reassigned to other offices, the agency said. The EPA placed 168 workers on administrative leave in February, but many were later called back to work.
-By Matthew Daly
Anti-Defamation League says anger at Israel is driving antisemitism
The ADL recorded a record 9,354 antisemitic incidents in the United States last year — 58% of them related to Israel — including chants, speeches and signs at rallies.
The ADL’s annual report released Tuesday cites widespread opposition to Israel’s military response in Gaza after the Hamas attack on Israel on Oct. 7, 2023. And it says it’s “careful to not conflate general criticism of Israel or anti-Israel activism with antisemitism.”
The debate among American Jews over what exactly constitutes antisemitism has led to a balancing act among Jewish leaders as the Trump administration seeks to punish universities and deport pro-Palestinian campus activists.
“The fears of antisemitism are legitimate and real — and we don’t want to see those real fears exploited to undermine democracy,” said Amy Spitalnick, CEO of the Jewish Council for Public Affairs. “I feel that a majority of American Jews can believe that two things are true at the same time.”
▶ Read more about the ADL report and reaction to it
Rubio unveils a massive overhaul of the State Department
The plans include reducing staff in the U.S. by 15% and closing and consolidating more than 100 bureaus worldwide as part of the Trump administration’s “America First” mandate.
The reorganization plan, announced by Secretary of State Marco Rubio on social media and detailed in documents obtained by The Associated Press, is the latest effort by the White House to reimagine U.S. foreign policy and scale back the size of the federal government.
“We cannot win the battle for the 21st century with bloated bureaucracy that stifles innovation and misallocates scarce resources,” Rubio said in a department-wide email obtained by The AP.
Plans include consolidating 734 bureaus and offices to 602 as well as transitioning 137 offices “to another location within the Department to increase efficiency,” according to a fact sheet obtained by The AP.
Wall Street rallies and recovers all of Monday’s slide as the dollar and US bond market steady
U.S. stocks are rallying Tuesday after companies reported fatter profits than expected, and other U.S. investments are also steadying a day after falling sharply on worries about President Donald Trump’s trade war and his attacks on the head of the Federal Reserve.
The S&P 500 was 2.7% higher in afternoon trading and on track to recover most of Monday’s drop. The Dow Jones Industrial Average was up 765 points, or 2%, as of 10:45 a.m. Eastern time, and the Nasdaq composite was 2.2% higher. Every major index recovered all of their losses from sharp drops on Monday.
The value of the U.S. dollar also stabilized after sliding against the euro and other competitors, while Treasury yields held steadier. Sharp, unusual moves in those markets have recently raised worries that Trump’s policies are making investors more skeptical that U.S. investments still deserve their reputations as the world’s safest.
Colorado fights Trump administration bid to help imprisoned loyalist
Colorado Attorney General Phil Weiser accused the Justice Department of wielding “political power” to give unprecedented help to a former county election clerk who was convicted of letting Trump supporters access election equipment after his 2020 defeat.
Trump administration prosecutors are trying to intervene in the case of Tina Peters, who wants to be released from prison while she appeals her conviction and nine-year sentence. A hearing is scheduled for Tuesday afternoon in federal court in Denver.
Peters’ case is among those the government has said it is reviewing for “abuses of the criminal justice process.” Weiser’s office said the Justice Department has not given any good reason why it should intervene.
“Tina Peters was not prosecuted because of any political pressure; she was prosecuted because she broke the law,” lawyers from Weiser’s office said in a filing.
A state judge sentenced Peters in October to nine years.
▶ Read more about today’s court hearing
Trump has always had a high tolerance for chaos
He’s shunned traditional policy deliberations to entertain divergent opinions and viewing unpredictability as a negotiating tool. He’s spent years fostering a competitive atmosphere among his staff, who are often chosen for their devotion and penchant for aggression.
There’s a risk for more turmoil in the months ahead, as Trump presses forward with a dramatic overhaul of the federal bureaucracy, international trade, foreign policy and more.
John Bolton, Trump’s first-term national security adviser who later wrote a tell-all book about the president’s inner circle, said the drama reflects the lack of consistent ideology and the inexperience of many administration officials.
“The only thing they have in common is the belief that they should show personal fealty to Trump,” Bolton said. “That got them the job. That may in fact keep them in the job. But it shows how fundamentally unserious they are.”
▶ Read more about conflict within the Trump administration
DC weighs layoffs and other cuts as House leaves capital city in budget limbo
Mayor Muriel Bowser and the D.C. Council are scrambling to address a financial crisis created when the Republican-controlled House of Representatives recessed without voting on a fix to a city budget hole.
To address it, Bowser’s government has ordered a spending freeze on new hires, promotions, bonuses and contracts. An overtime freeze starts Sunday. And she expects to receive a detailed plan for potential layoffs and furloughs by week’s end.
Bowser also has invoked a 2009 law allowing the city to increase spending by 6%. That shrinks the shortfall to $410 million, instead of $1.1 billion. She’s walking a public tightrope, balancing elected responsibilities and demands of the president and Congress as some rekindle calls for D.C. statehood.
Trump speaks with the Israeli prime minister
Trump said his conversation with Benjamin Netanyahu on Tuesday touched on Iran, trade and other subjects, and he found agreement with the foreign leader.
The Republican president said in a post on Truth Social that “The call went very well — We are on the same side of every issue.”
Trump endorses two GOP candidates as they compete for Arizona governor
Trump already made his Republican primary pick — housing developer Karrin Taylor Robson. She’s been trying to eliminate any daylight between herself and the president, touting Trump’s endorsement and eagerly embracing him and his policies.
Now Trump says he’s also endorsing her rival, U.S. Rep. Andy Biggs, who formerly chaired the House’s hard-right Freedom Caucus and was president of the Arizona Senate. Biggs has long been a close Trump ally and supported his stolen election claims.
“When Andy Biggs decided to run for Governor, quite unexpectedly, I had a problem — Two fantastic candidates, two terrific people, two wonderful champions, and it is therefore my Great Honor TO GIVE MY COMPLETE AND TOTAL ENDORSEMENT TO BOTH,” Trump said Monday in a post on Truth Social.
The GOP primary winner will face likely face Gov. Katie Hobbs, who has no serious Democratic challenger.
▶ Read more on Trump and the Arizona governor’s race
Roche announces $50B investment in US over next 5 years
The Swiss pharmaceuticals powerhouse announced Tuesday that the investment will create 12,000 jobs.
The Basel-based company envisions high-tech research and development sites and new manufacturing facilities in California, Indiana, Massachusetts and Pennsylvania.
Trump has urged foreign businesses to invest more in the United States, saying his sweeping tariffs are meant to reduce the U.S. trade deficit in sales of goods.
Roche spokesperson Rebekka Schnell said in an e-mail that the company isn’t specifying how much of the $50 billion was announced for the first time on Tuesday, and that some was already being spent or planned.
▶ Read more about the Roche deal and Trump’s negotiations with Switzerland
Supreme Court hears religious rights dispute over LGBTQ books in schools
The U.S. Supreme Court is hearing arguments over the religious rights of parents in Maryland to remove their children from elementary school classes that use storybooks with LGBTQ characters.
Tuesday’s case is the latest dispute involving religion to come before justices who have repeatedly endorsed claims of religious discrimination in recent years.
The Montgomery County public schools introduced the storybooks to better reflect the district’s diverse population. Some parents sued after the district stopped allowing them to pull their kids from the book lessons.
▶ Read more about the Supreme Court arguments in Mahmoud v. Taylor
Some GOP states are targeting driver’s licenses issued to immigrants illegally in the US
As Trump cracks down on illegal immigration, Republican legislators lawmakers are pushing new state laws targeting people lacking legal status to live in the U.S. Nineteen other states and Washington, D.C., issue driver’s licenses regardless of whether residents can prove their legal presence.
In Florida, motorists with special out-of-state driver’s licenses issued to those in the U.S. illegally are not welcome to drive. Wyoming’s governor enacted a comparable ban this year. And Tennessee’s governor said he will sign similar legislation sent to his desk.
On May 7, the U.S. will start enforcing national standards for state driver’s licenses. Licenses compliant with the REAL ID Act are marked with a star and require applicants to provide a Social Security number and proof of U.S. citizenship or legal residency.
▶ Read more on how states are targeting driver’s licenses differently
Mahmoud Khalil’s wife gave birth without him after ICE denied his plea for temporary release
Khalil, a Columbia University activist held in a detention center in Jena, Louisiana, requested a two-week furlough on Sunday morning, noting that his wife, Dr. Noor Abdalla, had gone into labor eight days earlier than expected. Their child was born Monday in New York, according to emails shared with The Associated Press.
His lawyers had said he would be “open to any combination of conditions” to allow the temporary release, but an ICE official promptly wrote back denying the request.
“My son and I should not be navigating his first days on earth without Mahmoud,” she added. “ICE and the Trump administration have stolen these precious moments from our family in an attempt to silence Mahmoud’s support for Palestinian freedom.”
A message seeking comment was left with ICE officials.
Vance calls for greater ties with India, hails progress on trade talks
The U.S. vice president talked up an expected bilateral trade deal with India by calling Tuesday for enhanced engagement. He said India should buy more U.S. defense equipment and energy and allow Washington greater access to its market.
Vance said he and Prime Minister Narendra Modi had finalized the terms of reference for the trade negotiation, a vital step towards setting the road map for a final agreement aimed at more than doubling bilateral trade to $500 billion by 2030.
“I believe there is much that India and America can accomplish together,” Vance said in the western city of Jaipur, where and his wife Usha and their three children were sightseeing during their four-day visit to India.
▶ Read more about Vance’s India trip
US, global economic outlook worsens in response to Trump’s tariffs, IMF says
The International Monetary Fund said Tuesday that due to uncertainty over Trump’s plans, the global economy will grow just 2.8% this year, down from its 3.3% forecast in January. U.S. economic growth will come in at just 1.8% this year, down sharply from its previous forecast of 2.7% and a full percentage point below its 2024 expansion.
The IMF’s World Economic Outlook raised the odds of a U.S. recession this year from 25% to 37%. Economists at JPMorgan say the chances of a U.S. recession are now 60%.
“We are entering a new era,” chief IMF economist Pierre-Olivier Gourinchas said. “This global economic system that has operated for the last eighty years is being reset.”
▶ Read more about the IMF’s World Economic Outlook
Defense secretary again denies sharing classified info despite reports that operational details were pulled from secure military comms
Hegseth doubled down during a Tuesday morning Fox and Friends interview, insisting that the information on airstrike launches and bomb drop times that he shared with his wife and brother and dozens of others in two separate Signal chats was not classified.
Hegseth didn’t deny the existence of a separate chat, instead attacking the media and his former staff, which he accused of leaking information about the chats.
His repeat denial comes as NBC News reported Tuesday that the information Hegseth posted came directly from secure communications from the head of U.S. Central Command, Gen. Erik Kurilla.
The Pentagon’s inspector general is investigating the chats.
Hegseth says he’s never doubted his decision to become defense secretary
“Oh, not for a minute,” Hegseth said Tuesday on Fox News Channel’s “Fox & Friends.”
“I haven’t blinked, and I won’t blink because this job is too big and too important for the American people, and I’m grateful for every opportunity the president’s given,” Hegseth said.
Hegseth had a rocky road to confirmation and is under investigation by the Defense Department’s acting inspector general for allegedly sharing classified information over the Signal messaging app and with people outside of the military, like his wife. Close advisers recently were dismissed from top roles at the Pentagon, leading to questions about Hegseth’s leadership and viability. Trump has dismissed the allegations.
Wall Street opens slightly higher amid skepticism about the strength and safety of US investments
President Donald Trump’s trade war and his attacks on the Federal Reserve Chairman Jerome Powell have sent markets sharply lower.
Futures for the S&P 500, the Dow Jones Industrial Average and Nasdaq rose less than 1% before the bell, far from recovering Monday’s loss of more than 2% as Trump stepped up his public criticism of Powell.
Trump has been demanding that the central bank lower its key interest rate to boost the economy. Trump called Powell “a major loser” and declared that the central bank no longer needs to keep interest rates elevated to suppress inflation. The Fed has resisted lowering rates quickly, which could reignite inflation after it soared to more than 9% during the COVID-19 pandemic.
Any attempt to unseat Powell would likely set off a crisis in global financial markets.
▶ Read more about today’s developments in financial markets
As controversies pile up, Trump allies increasingly turn on one another
The infighting and backstabbing that plagued Trump’s first term have returned as a threat to his second, with deepening fissures over trade, national security and questions of personal loyalty.
The latest turmoil threatens to engulf the Pentagon, where Defense Secretary Pete Hegseth has pushed out top advisers and faces fresh controversy over sharing sensitive information about airstrikes in Yemen outside of classified channels. A former Pentagon spokesperson who was ousted last week wrote in Politico that Trump should fire Hegseth for presiding over a “full-blown meltdown.”
The interpersonal drama is not — at least yet — a dominant plot line of Trump’s return to the White House. But its reemergence after a period of relative discipline in his ranks reflects a turbulent management style that has been suppressed or papered over, not reformed.
▶ Read more about the infighting within the Trump administration
Trump says he’ll give commencement addresses at West Point and the University of Alabama
Trump called the institutions “two really GREAT places” as he announced his upcoming schedule in a social media post.
It’s tradition for the commander in chief to speak at one of the military service academies and West Point’s commencement is May 24.
Alabama’s website says commencement ceremonies are May 2-4.
Vance and Modi meet in New Delhi to discuss trade deal and avoid US tariffs
Vance held talks with Indian Prime Minister Narendra Modi on Monday as New Delhi looks to avoid American tariffs, negotiate a bilateral trade deal with Washington and strengthen ties with the Trump administration.
Vance, who is on a largely personal four-day visit to India, met with Modi at his residence in New Delhi and the two leaders “reviewed and positively assessed the progress in various areas of bilateral cooperation,” Modi’s office said in a statement. They also “welcomed the significant progress” in the negotiations of an expected trade deal between the two countries, the statement said.
The White House, in a statement, said that Vance and Modi set the terms for ongoing talks, “laying down a roadmap for further discussions.” It’s a sign that talks are moving forward but remain far from finalized, though Trump administration officials also spoke with their counterparts from India in a sign of the high level of engagement.
The Trump administration has portrayed its strategy of tariffs as forcing negotiations that could limit the reach and influence of China, the world’s dominant manufacturer.
▶ Read more about Vance and Modi’s meeting
Harvard sues Trump administration to stop the freeze of more than $2 billion in grants
Harvard University announced Monday that it has filed suit to halt a federal freeze on more than $2.2 billion in grants after the institution said it would defy the Trump administration’s demands to limit activism on campus.
In an April 11 letter to Harvard, the Trump administration had called for broad government and leadership reforms at the university and changes to its admissions policies. It also demanded the university audit views of diversity on campus and stop recognizing some student clubs. The administration has argued that universities allowed antisemitism to go unchecked at campus protests last year against Israel’s war in Gaza.
Harvard President Alan Garber said the university would not bend to the demands. Hours later, the government froze billions of dollars in federal funding.
Harvard’s suit called the funding freeze “arbitrary and capricious,” saying it violated its First Amendment rights and the statutory provisions of Title VI of the Civil Rights Act.
Within hours, the White House lashed back.
▶ Read more about the lawsuit
The Associated Press