
Unpacking Trump's big SCOTUS win
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THE CATCH-UP
The Supreme Court cleared the deck today as the justices wrapped up the final official decision day, handing down six rulings and delivering President Donald Trump a major victory as he seeks to carry out his domestic agenda.
Nationwide injunctions
The decision: In a big win for Trump, the court ruled in favor of the administration's request to narrow the scope of nationwide injunctions imposed by judges that blocked his executive order intended to end the right to birthright citizenship. In the 6-3 vote along ideological lines the court 'sharply curtailed the power of individual district court judges to issue injunctions blocking federal government policies nationwide,' POLITICO's Josh Gerstein reports.
The justices said that in most cases, 'judges can only grant relief to the individuals or groups who brought a particular lawsuit and may not extend those decisions to protect other individuals without going through the process of converting a lawsuit into a class action.' Left untouched — at least for now — was the legality of Trump's order.
The opinion: 'The universal injunction was conspicuously nonexistent for most of our Nation's history,' Justice Amy Coney Barrett wrote in the majority opinion, adding that the nationwide injunctions apply 'only to the extent that the injunctions are broader than necessary.'
The dissent: 'The Court's decision to permit the Executive to violate the Constitution with respect to anyone who has not yet sued is an existential threat to the rule of law,' Justice Ketanji Brown Jackson wrote. Notably, Justice Sonia Sotomayor read her own portion of the dissenting opinion aloud in court for 19 minutes, in a 'signal of the gravity of her concern and the importance of the case,' Josh writes.
The reaction: The White House was quick to celebrate the win. Trump dropped into the briefing room for an impromptu news conference shortly after the ruling, where he said he was 'grateful' to the court 'for stepping in and solving this very … complex issue and making it very simple.' Trump also heaped praise on Barrett — who has recently come under fire from the right — noting her decision was 'brilliantly written.'
What's next: 'It's very possible that nothing has changed re: nationwide injunction on birthright citizenship,' POLITICO's Kyle Cheney points out. 'While the court broadly limited nationwide injunctions, it said states may still be entitled to them if it's necessary for complete relief. Two of the birthright cases were brought by states, who argued they needed nationwide relief because patchwork citizenship rules would be devastating when people move from state to state. If district courts agree, then the nationwide injunctions will remain in place.'
And the majority opinion 'provides no clear roadmap except to say that the executive order 'shall not take effect until 30 days after the date of this opinion,'' POLITICO's Ankush Khardori notes. 'The absence of clear guidance on this point is likely to generate even more disputes — not the least of which is how the administration is going to enforce the executive order while at the same time defending the executive order against the states' pending challenges.'
Obamacare coverage
The decision: In another 6-3 decision, the Supreme Court preserved the provision of the Affordable Care Act that requires insurance companies to cover preventive health services at no cost to patients, POLITICO's Alice Miranda Ollstein and colleagues report.
The analysis: 'Health policy experts and patient advocates who expressed relief that the Trump administration opted to defend Obamacare remain concerned that HHS Secretary Robert F. Kennedy Jr. and other officials will now deploy that power to reshape what services must be covered by insurance without copays' and 'could also empower Kennedy to overhaul other advisory panels at HHS,' our colleagues write.
LGBTQ+ lessons
The decision: In another 6-3 ruling, the high court sided with a group of parents who opted to remove their children from classes that include books with LGBTQ+ themes. The decision comes after a group of Muslim, Christian and Jewish parents sued Marylans's Montgomery County Board of Education after the board prevented parents from removing their elementary school children from lessons citing religious reasons. More from POLITICO's Bianca Quilantan
And more …
More action on the way: 'Chief Justice John Roberts announced from the bench that the court plans to issue orders next week on Monday and Thursday,' Josh writes. 'Monday's orders are likely to include grants of review from a conference the justices held yesterday. Thursday's will likely address cases impacted by the decisions handed down this week.'
Catch up on all the news and analysis from from our colleagues on the SCOTUS live blog
Happy Friday afternoon. Thanks for reading Playbook PM. Drop me a line at birvine@politico.com.
7 THINGS YOU NEED TO KNOW
1. RECONCILABLE DIFFERENCES: Another day, another slew of setbacks for GOP leaders over Trump's sweeping tax and spending legislation. As the Senate scrambles to meet Republicans' self-imposed July 4 deadline, Speaker Mike Johnson is now reluctantly admitting that they may not reach their goal, POLITICO's Meredith Lee Hill reports. 'It's possible,' he told reporters of the timeline slipping, 'but I don't want to even accept that as an option right now.' Even Trump is softening his stance: 'It's not the end all,' Trump said today of the July 4 goal, per POLITICO's Adam Cancryn. 'It can go longer, but we'd like to get it done by that time if possible.'
The crunch: 'With the Senate not expected to start debating the bill until Saturday at the earliest, the House might not get the bill until Sunday. Johnson confirmed he plans to observe a House rule giving members at least 72 hours to review the bill before floor consideration begins. 'The House will not be jammed by anything,' he added.'
SALT on the table: The White House is 'close to clinching an agreement on the state and local tax deduction after a last-ditch flurry of negotiations with blue-state House GOP holdouts and Senate Republicans,' POLITICO's Meredith Lee Hill reports. Johnson said 'a lot of progress' was made on the issue yesterday.
Quote of the day: 'This bill is like yogurt, not wine,' one senator told Semafor's Burgess Everett, who notes that the chamber is racing to 'vote basically immediately' once Republicans get their ducks in a row.
2. TRADING SPACES: The early July deadline for the Trump administration's tariff negotiations with top trading partners also seems to be a moving target. Treasury Secretary Scott Bessent noted in a Fox Business interview today that negotiations could stretch as far as Labor Day, POLITICO's Jacob Wendler reports. 'We have 18 important trading partners — U.K., China are behind us for now — and then Secretary [Howard] Lutnick said yesterday that he expects 10 more deals. So, if we can ink 10 or 12 of the important 18 — there are another important 20 relationships — then I think we could have trade wrapped up by Labor Day,' Bessent said.
3. TAKING STOCK: 'Historic Rebound Sends S&P 500 to New Highs,' by WSJ's Karen Langley and Krystal Hur: 'The S&P 500 on Friday touched its first new high since February, capping a dizzying 23% rally from the depths of April's tariff-induced selloff. The wild 89 trading days in between put the broad U.S. stock index on track for its swiftest recovery back to a record close after a decline of at least 15%, according to Dow Jones Market Data. Stocks have climbed in recent sessions after the fragile cease-fire between Israel and Iran sent oil prices lower and fueled optimism that the Middle East could avoid a prolonged conflict.'
4. MIDDLE EAST LATEST: As the Trump administration continues to show confidence in the success of last weekend's strikes on Iran, lawmakers huddled in the Capitol today for a closed-door intelligence briefing on 'Operation Midnight Hammer.' Upon leaving the briefing, Johnson told reporters that the group discussed the need for Iran 'to engage with us in direct good faith talks, negotiations, not through third parties, not through other countries. They need to sit down at the table with us and ensure that this peace is truly lasting,' Johnson said.
Tensions remain high: Israeli Defense Minister Israel Katz instructed military personnel today to prepare an 'enforcement plan' that would maintain 'Israel's air superiority, preventing nuclear and missile development, and responding to Iranian support for terrorist activity,' per CNN. Katz told local outlets he would pursue a ''policy of enforcement' against Iran despite a cease-fire, aiming to prevent Tehran from rebuilding its air power, advancing nuclear projects or developing 'threatening long-range missiles,'' NYT's Erika Solomon and Johnatan Reiss report.
5. INTEL ISSUES: Senate Intel Chair Tom Cotton (R-Ark.) has proposed in a new bill a radical reorganization of Tulsi Gabbard's Office of National Intelligence, proposing drastic cuts to its staff, shrinking numbers down from around 1,600 to 650, NBC's Dan De Luce and Gordon Lubold scoop. Gabbard has already slashed staff by 20 percent since stepping into her role as director, though the former presidential candidate reportedly has fallen out of favor with Trump in recent weeks. Still, a staffer notes 'Cotton and other Republican senators have been working on the proposed reform for months and that their effort preceded Gabbard's appointment.'
6. TRIGGER HAPPY: The Department of Government Efficiency has another target in its sights: gun restrictions. DOGE staff have been deployed to the Bureau of Alcohol, Tobacco, Firearms and Explosives 'with the goal of revising or eliminating dozens of rules and gun restrictions by July 4' as the White House takes a wrecking ball to the regulatory agency, WaPo's Perry Stein scoops. 'The initial target was to change 47 regulations, an apparent reference to Donald Trump's status as the 47th president of the United States,' but staffers now have 'upward of 50 changes planned.' Though exact details are still unclear, there are also planned tweaks to the form most buyers have to fill out when purchasing a firearm.
7. CALIFORNIA STEAMIN': 'Gavin Newsom sues Fox News for $787M in defamation case over Trump call,' by POLITICO's Tyler Katzenberger: 'The California governor accused Fox News of defamation in a lawsuit Friday morning, alleging the network should fork over $787 million after host Jesse Watters claimed Newsom lied about his phone calls with Trump, who ordered National Guard troops to Los Angeles this month. Newsom's lawyers argue Watters' program misleadingly edited a video of Trump to support the claim.' The response: 'Newsom's transparent publicity stunt is frivolous and designed to chill free speech critical of him. We will defend this case vigorously and look forward to it being dismissed,' Fox News said in a statement.
TALK OF THE TOWN
OUT AND ABOUT — Courier Newsroom hosted a 'Like and Subscribe' happy hour at the Eaton yesterday, celebrating the launch of their podcasts and digital series. The event featured light bites and cocktails, including drinks such as the 'Panic World Paloma' and 'Exit Poll Espresso Martini.' SPOTTED: Akilah Hughes, Ryan Broderick, Grant Irving, Ashley Ray, Nick Kitchel, Patrick Stevenson, Tyler Steinhardt, Teddy Schleifer, Kara Voght, Nancy Scola, Matt Erickson, Colin Delany and Alex Wall.
— NBCUniversal and the Motion Picture Association co-hosted a screening of 'Jurassic World: Rebirth' last night. SPOTTED: Reps. Judy Chu (D-Calif.) and Laura Friedman (D-Calif.), Phil Tahtakran, Charlie Rivkin, Maureen Dowd, Dan Glickman, Neil Fried, Stephen Hartell, Sena Fitzmaurice and Philip Reeker.
— The Washington AI Network hosted its first-ever speakeasy last night at The House at 1229, where guests enjoyed cocktails, karaoke, slushies and ice cream sandwiches. SPOTTED: Tammy Haddad, Jake Denton, Pierson Furnish, Adam Branch, Miriam Vogel, Max Fenkell, Ashley Callen, Mary Kozeny, Mitchell Rivard, Govind Shivkumar, Emma Mears, Cristóbal Alex, Josh Dawsey and Joanna Guy.
— SPOTTED at a NewDEAL happy hour at Crimson Whiskey Bar yesterday honoring New York state Rep. Alex Bores, Alabama state Rep. Jeremy Gray, Hawaii state Sen. Troy Hashimoto, Massachusetts state Rep. Tram Nguyen, Iowa state Rep. Megan Srinivas and Kansas state Rep. Brandon Woodard: Helen Milby, Andy Flick, John McCarthy, Kathleen Mellody, Jon Boughtin, Ted Koutsoubas, Alex Chanen, Scott Quinn, Jonathan Lozier, Ryan Ford, Natasha Dabrowski, Jonathan Dworkin and Aaron Wasserman.
FIRST IN PLAYBOOK — Treasury is bringing in a slate of new senior staff: John Crews will be deputy assistant secretary for financial institutions, Connor Dunn will be deputy assistant secretary for legislative affairs, Spencer Hurwitz will be deputy assistant secretary for public affairs, Ashtyn Landen will be deputy executive secretary, Parastu Malik will be counselor to the chief of staff and chief AI officer …
… Zach Mollengarden will be deputy executive secretary, David O'Brien will be deputy assistant secretary for public affairs, John Poulson will be deputy assistant secretary for legislative affairs, Shane Shannon will be counselor to the general counsel and Cory Wilson will be deputy assistant secretary for the Office of Cybersecurity and Critical Infrastructure Protection.
TRANSITIONS — Karen Paikin Barall is now chief policy officer at the Louis D. Brandeis Center for Human Rights Under Law. She previously was VP of government relations for Jewish Federations of North America. … Erica Goldman is joining Prologue as head of insights and analysis. She previously was managing director of research at Purple Strategies. … Jim Smythers is now senior director for government relations at Stratolaunch. He previously was in the Foreign Service and is a Senate Intelligence Committee alum.
… Lauren Dueck is now SVP and comms director at The Asia Group. She previously was comms director at NOAA's National Environmental Satellite, Data and Information Service. … Claire Trokey will join LinkedIn's U.S. public policy team to lead engagement with the administration and congressional Republicans. She most recently has been policy adviser to House Majority Leader Steve Scalise. … Catherine (Cat) Oakar will be the next executive director of Freshfarm. She most recently was special assistant to the president for public health and disparities in the Domestic Policy Council in the Biden White House.
BIRTHWEEK (was yesterday): Elizabeth Pipko
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Associated Press
34 minutes ago
- Associated Press
In their own words: What justices, Trump and groups say about courts and birthright citizenship
At the Supreme Court Friday, justices lambasted one another over the extent of judicial authority. Dissenting Justice Sonia Sotomayor accused President Donald Trump of trying to game the courts to break the law. The president expressed joy in reclaiming some power back from the judiciary, while advocates sounded worries for immigrant families before filing new legal challenges. The high court ruled that federal judges lack the authority to grant nationwide injunctions, but the decision left unclear whether Trump's restrictions on birthright citizenship could soon take effect in parts of the country. Here are some of the arguments and comments made by justices, Trump and advocates regarding the court's 6-3 ruling over an effort by the president to deny birthright citizenship to children born to immigrants. Barrett, Jackson on the judiciary's role Justice Amy Coney Barrett defended the majority opinion that the judiciary does not have 'unbridled authority' to enforce the president's duty to follow the law. Justice Ketanji Brown Jackson, who joined Sotomayor's dissent, wrote that the role of lower courts should ensure that. 'For that to actually happen, courts must have the power to order everyone (including the Executive) to follow the law — full stop,' Jackson wrote. Barrett called Jackson's arguments 'extreme' and said her reasoning was not tethered 'to any doctrine whatsoever.' 'She offers a vision of the judicial role that would make even the most ardent defender of judicial supremacy blush,' Barrett wrote. She later stated: 'We will not dwell on Justice Jackson's argument, which is at odds with more than two centuries' worth of precedent, not to mention the Constitution itself. We observe only this: Justice Jackson decries an imperial Executive while embracing an imperial Judiciary.' Sotomayor accuses Trump of 'gamesmanship' Sotomayor did not mince words when arguing the ruling presents a threat. She accused the Trump administration of using tactics to game the courts and said it has been defying the Constitution. 'The gamesmanship in this request is apparent and the government makes no attempt to hide it,' she wrote. 'Yet, shamefully, this Court plays along.' Sotomayor also wrote that Trump's order is 'patently unconstitutional under settled law,' and argued that granting relief through Friday's decision 'is nothing less than an open invitation for the Government to bypass the Constitution.' 'The rule of law is not a given in this Nation, nor any other. It is a precept of our democracy that will endure only if those brave enough in every branch fight for its survival. Today, the Court abdicates its vital role in that effort,' she wrote. A warning about what may be next Sotomayor expressed worries about the chaos that may follow before the Supreme Court gets to decide on whether these children should get U.S. citizenship. She worried about the decision leaving some children 'stateless,' risking deportation even when their parents are in the country legally with temporary status visas or other programs. Sotomayor also warned about the possible wider impact of the ruling. 'No right is safe in the new legal regime the Court creates. Today, the threat is to birthright citizenship. Tomorrow, a different administration may try to seize firearms from law-abiding citizens or prevent people of certain faiths from gathering to worship,' she wrote. Trump celebrates Trump, meanwhile, quickly celebrated the ruling, calling it a 'monumental victory for the Constitution,' the separation of powers and the rule of law. 'These judges have attempted to dictate the law for the entire nation,' Trump told reporters during a news conference in the White House briefing room. 'Thanks to this decision, we can now promptly file to proceed with numerous policies that have been wrongly enjoined on a nationwide basis.' The president said he would try to advance restrictions on birthright citizenship and other policies that had been blocked by lower courts. Immigrant rights group responds One of the groups that challenged Trump's order quickly went back to court seeking to keep his new restrictions on birthright citizenship at bay. CASA, a nonprofit immigrant rights organization, asked a federal court in Maryland to certify a class-action lawsuit that would represent all newborns who would no longer automatically be citizens if Trump's order goes into effect. 'Scotus has carelessly put at risk the citizenship of many hundreds of thousands of newborns and yet to be born innocent. But in the end, this ruling does nothing more than guarantee that the fight and the movement towards justice continue,' said George Escobar, CASA's chief of programs and services.
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Yahoo
35 minutes ago
- Yahoo
Europe's Time Is Now (for Stablecoins)
Trump has come into office with a wrecking ball – and his acts of unpredictability, both domestically and abroad, have only hampered the dollar's status as the choice reserve currency. In the crypto world, this only means one thing – USD-pegged stablecoins will wane in dominance, leaving a vacuum for other currencies to pounce. And of them, it might just be the rapidly growing EUR coins that muscle up the hardest. Let's take a step back. Since Trump's inauguration, the dollar has fallen to a three-year low against a basket of major currencies, declining by approximately 5% over roughly the last six months. A combination of whimsical trade policy, feckless fiscal bets, and, overall, international antagonism have beleaguered the U.S. market, damning its equities, raising its Treasury yields, and taking an axe to the dollar. The U.S.'s prominence as the strongest and most stable economy has been tested. And we've even seen an 'Anywhere, but the USA' trade come to light as a result. With the U.S. economy and markets so volatile, investors have – as usual – fled to safe-haven assets like gold to mitigate any losses. But surprisingly, the euro has also risen up the ranks: according to a recent report by Reuters, central bankers across the globe are now looking at gold, the renminbi, and the euro as choice reserve assets. The world is diversifying away from the dollar – and that'll be sure to reflect in DeFi. Of course, that being said, I'm not talking about a full-fledged overtake here. In the stablecoin world, USD is very much king. Tether dominates nearly 70% of the market, and we've even seen Circle make headlines for securing a $5.4 billion IPO. But as the dollar wanes – especially to the point it makes losses against emerging markets and the G10 – I just think the market will broaden out. USD monopolies might not be as strong. Currently, there are 12 prominent euro-pegged stablecoins and 56 USD counterparts – a huge difference. But as the euro makes up its losses and gains further strength, who's to say these coins won't compete? With enthusiastic fiscal policy, stronger defence spending, and, of course, the momentum of capital flow, the euro has climbed to near pivotal $1.20. And if Trump continues on his current path, I expect this will only climb further. It's not just a trend of de-dollarization to factor in, either. The E.U. has become increasingly open to crypto, this year cementing the final provisions of the MiCA framework – giving crypto issuers the ability to attain licences and establish themselves in the regulated European market. Tether is not compliant with MiCA, giving alternative coins – including EUR-pegged ones, such as EURC – an opportunity to strengthen their regional market share. By way of that, the E.U. has subsequently adopted a more favorable and supportive stance toward crypto issuers. OKX, Coinbase, and soon perhaps even Gemini are all crypto issuers and exchanges with or about to receive EU approval. Forget Trump's vows to make the U.S. the 'crypto capital of the planet.' The EU is fast catching up. Europe is no longer the anti-innovation, bureaucratic monster it once was. It has palmed off its past scepticism, opened its doors to digital assets, and beyond that, as per Christine Lagarde, is ambitious enough to be pushing for its 'global euro moment.' It is truly capitalizing on the misfortunes of Uncle Sam, and I see no plausible reason as to how this won't reflect in the stablecoin market. I understand the attitude toward stablecoins is still mixed. The Bank of International Settlements has recently cast them off as a 'financial stability risk.' Even so, the global market cap of the broader ecosystem recently peaked at over $250 billion. The size, popularity, and appeal of the market cannot be denied. And they're certainly more practical than tokenised currencies, as BIS' Project Agora is attempting to push forward. As such, I don't see the stablecoin market contracting any time soon. And as long as Trump continues his heavy-handed approach and Europe capitalises on the fallout, I can only see issuers veering closer and closer to EUR-based coins. Complete de-dollarisation is far from realistic, but as long as the euro remains on its upward trajectory, so will investments into and transactions via the continent and its currency. By 2028 – and by that, I mean the end of Trump's term – I predict we'll see more EUR-pegged stablecoins come to the surface, and so much so that they'll even threaten their American counterparts. Recession risks, bear market risks, and, overall, a lack of investor confidence have taken the dollar into the doldrums. Europe's time is now.