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What you need to know

Senate rejects leadership’s bid to dilute Epstein files bill

The Senate has delivered an unexpected rebuff to its own leadership. By passing the bill to release the long-awaited Epstein files without the revisions urged by House Speaker Mike Johnson, it approved a disclosure regime more stringent than many in Washington had anticipated. 

The measure grants Attorney General Pam Bondi the authority to withhold or redact material that could compromise national security or an active investigation, a familiar carve-out in sensitive cases. 

However, the bill’s architects have ensured close oversight of that discretion.

Any redactions must be reviewed by the congressional Oversight Committee, and it’s a criminal offense for the attorney general to remove information for the purpose of concealing wrongdoing.

In a further constraint, Representative Ro Khanna and Representative Thomas Massie added a quiet provision that requires the Justice Department to inform both parties in Congress whenever it withholds material.

The result is a statute that favors transparency and offers limited room for discreet interventions by the executive branch.

For Johnson, who had sought broader exemptions to protect ongoing prosecutions and intelligence matters, the Senate’s decision represents a political setback and signals a growing bipartisan appetite for clarity in a scandal that has already entangled prominent figures on both sides of the aisle.

Move fast and break things

Republican redistricting efforts run into a string of legal and political setbacks

Republican efforts to redraw congressional districts to their advantage ahead of next year’s elections are faltering across several key states.

In Indiana, the state Senate voted to adjourn by 29 votes to 19, with 19 Republicans joining all 10 Democrats to thwart the governor’s push for an immediate redistricting session. The revolt reflects rare internal dissent within a firmly Republican legislature and suggests that efforts to push through a rapid redrawing of the map may stall until after the election.

In Texas, a panel of federal judges has barred the state from using its newly redrawn congressional boundaries, ordering officials to revert to the 2021 map while litigation proceeds. The decision is a significant setback for state leaders who had sought to entrench Republican advantages in fast-growing suburban districts. The injunction adds Texas to a growing list of states where courts have intervened to halt partisan cartography.

Utah has delivered one of the most striking reversals. Republican leaders there have seen their preferred congressional map collapse in the courts, leaving them bound by a judge-imposed alternative likely to shape state politics for years. The legislature’s failure to submit its promised legal challenge on time, combined with the Utah Supreme Court’s forceful defense of voter-approved anti-gerrymandering rules, has left its options limited to a late appeal with uncertain prospects. The ruling signals a broader shift in state politics: even in a reliably conservative stronghold, institutional constraints and judicial scrutiny can outweigh partisan ambition.

Further challenges loom. In North Carolina, a three-judge federal panel is holding a preliminary injunction hearing today in Winston-Salem on whether to block the state’s new congressional map. Plaintiffs argue that the redrawing is an extreme partisan gerrymander that dilutes the voting strength of urban and minority communities. A ruling against the state would add another major blow to Republican redistricting plans.

Taken together, the setbacks illustrate a national pattern in which Republican-controlled legislatures are encountering stiffer resistance from courts, internal dissent, and activist groups than in previous cycles.

With filing deadlines approaching, each disruption increases the risk that several states will head into the 2026 elections under maps drawn not by lawmakers but by judges.

Court order forces withdrawal of National Guard from Memphis as federal pullback widens

A court has issued a temporary injunction requiring the National Guard to withdraw from Memphis, halting a deployment that had become a flashpoint in the debate over federal intervention in local security crises. The order, delivered late on Wednesday, directs state and federal authorities to vacate their positions while the legality of the deployment is reviewed. Local officials, who had challenged the presence of Guard units as an overreach, welcomed the ruling, while critics argued that the withdrawal could strain already stretched municipal police forces.

The decision comes as President Donald Trump begins a broader retrenchment of National Guard operations in U.S. cities.

The administration has ordered Guard units to leave Chicago and Portland, two cities where deployments had been justified on the grounds of persistent crime and politically charged unrest. Senior officials say the withdrawals reflect a shift toward placing primary responsibility for law-and-order operations back in the hands of local authorities, although the move also follows a series of legal challenges from city governments and civil-rights groups.

The confluence of the court injunction in Memphis and the voluntary pullback from Chicago and Portland points to a recalibration of the federal government’s domestic security posture. It also reopens familiar questions about the limits of presidential authority in deploying military forces within the U.S., the responsibilities of state governments, and the extent to which local leaders can resist or welcome federal assistance.

Courts rebuff a trio of high-profile legal challenges

A federal appeals court has dismissed President Donald Trump’s defamation lawsuit against CNN, ruling that the network’s use of the phrase “Big Lie” to describe his election claims fell squarely within the bounds of protected political commentary.

The three-judge panel, which included two judges appointed by Trump, concluded that the case lacked merit and that the phrase, however pointed, constituted opinion rather than defamatory fact. The ruling reinforces a long-standing judicial reluctance to police political rhetoric, particularly when directed at public figures.

In a separate dispute, Corporate Public Broadcasting has agreed to honor its $36 million annual contract with National Public Radio after a federal judge rejected the defense put forward by CPB officials. The court found their arguments for withholding the funds unconvincing, clearing the way for the continuation of one of NPR’s core sources of institutional support. The outcome averts what would have been a substantial financial shock for the broadcaster and signals that judicial scrutiny of perceived-politically motivated disruptions to media funding remains robust.

At the same time, a federal judge has dismissed the Department of Justice’s attempt to compel New York authorities to assist federal immigration agents in making arrests at state courthouses. The court held that the federal government could not force state officials to participate in enforcement operations that conflicted with state policy. The ruling is the latest in a series of decisions delineating the limits of federal power in immigration enforcement, and it underscores the judiciary’s continuing insistence that cooperation between federal and state authorities cannot be mandated by executive preference alone.

Taken together, the three rulings illustrate a pattern: courts across the country remain willing to check federal overreach, shield state prerogatives, and affirm protections for political speech, even in cases fraught with political implications.

It’s the U.S. vs China, everyone else needs to choose a side

Ukraine’s use of U.S. missiles marks shift in U.S. posture as air war intensifies

Ukraine’s announcement that it has used U.S.-made ATACMS missiles to strike targets inside Russia signals a notable change in Washington’s approach to the conflict.

After months in which the Pentagon imposed strict limits on the employment of long-range U.S. systems, Kyiv’s General Staff have now confirmed that the missiles had been used across the border, describing their use as a “significant development” and a demonstration of Ukraine’s commitment to defend its sovereignty.

The shift comes as the U.S. is preparing further assistance. The State Department has approved the possible Foreign Military Sale of sustainment equipment for the PATRIOT air-defense system, including the upgrade of M901 launchers to the M903 variant, at a total estimated cost of $105 million. Raytheon and Lockheed Martin would serve as prime contractors.

In a sign of continuing military cooperation, President Volodymyr Zelensky is due to meet U.S. Secretary of the Army Dan Driscoll and Army Chief of Staff General Randy A. George in Kyiv tomorrow.

Last night, Russia launched one of its largest air assaults of the war against cities in western Ukraine, employing cruise and ballistic missiles alongside swarms of attack drones. Lviv, Ternopil, and Ivano-Frankivsk were struck heavily. The death toll from the strike on Ternopil has risen to 19 civilians, a grim reminder of Russia’s escalating campaign against urban centers far from the front line.

The attacks also spilled over into NATO’s airspace. Several Russian drones are thought to have entered Poland, whose foreign minister linked the incursion to a railway explosion over the weekend, calling it “not only an act of sabotage but also an act of state terrorism” and promising a response that would extend beyond diplomacy. A Russian suicide drone also violated Romanian airspace. Poland temporarily closed Rzeszow and Lublin airports to allow its air force uninterrupted access to the skies during border operations, and Polish fighter jets were scrambled as part of a wider effort to guard against further Russian drones crossing into NATO territory.

Britain confronts Russian harassment near Scotland

Defence Secretary John Healey has disclosed that a Russian intelligence-gathering vessel, the Yantar, entered the United Kingdom’s wider maritime zone north of Scotland in recent weeks and directed lasers at British pilots.

According to officials, British aircraft monitoring the ship were repeatedly targeted with laser bursts, a form of harassment intended to disrupt sensors and impair visibility.

Although the Yantar did not breach territorial waters, its presence in the surrounding zone and its attempts to interfere with British flights have revived concerns about Russia’s interest in undersea cables, offshore energy platforms, and other critical infrastructure in the North Sea.

The episode comes at a moment of heightened vigilance across NATO’s northern flank, where Russian naval movements have grown more assertive.

The Yantar, long suspected of carrying deep-sea submersibles capable of tapping or severing undersea communications lines, has been monitored closely by Western militaries for years.

Its approach to the UK’s maritime approaches has prompted renewed calls for investment in surveillance, anti-submarine assets, and infrastructure protection.

Healey’s decision to reveal the incident reflects a growing willingness in London to expose Russian behavior that would once have been handled quietly, part of a broader effort to deter further provocations and reassure allies in the North Atlantic.

U.S. approves new missile package for Taiwan

The United States has confirmed the sale to Taiwan of an advanced air-defense missile system valued at almost $700 million, the second major weapons package for the island in a week and a sign of warm security ties amid pressure from Beijing.

The system, which has been battle-tested in Ukraine and praised by Western militaries for its performance against Russian cruise missiles and drones, is intended to strengthen Taiwan’s ability to withstand the opening phases of a potential blockade or strike campaign.

Officials in Washington say the transfer is consistent with long-standing commitments under the Taiwan Relations Act, although the timing reflects wider anxieties about China’s rising military activity around the island.

The new package includes interceptors, launch-system components, and sustainment supplies, part of a broader shift toward ensuring Taipei has stockpiles and maintenance capacity sufficient for a prolonged conflict.

Taipei welcomed the announcement, describing the system as a critical addition to its layered defense strategy. Beijing predictably condemned the move, accusing Washington of destabilizing the region.

A string of Chinese espionage scandals unsettles Washington

A cascade of espionage revelations involving China has broken into public view, raising fresh questions about the scale of Beijing’s intelligence operations in the United States and the vulnerabilities within American institutions.

In New York, investigators uncovered a case in which a Chinese national allegedly forged the signature of Governor Kathy Hochul in an apparent attempt to manipulate state-level documentation, a breach officials describe as one of the most audacious in recent memory.

At the same time, scrutiny has fallen on a little-known insurance firm that provides coverage for personnel linked to the Central Intelligence Agency, which recent disclosures show is ultimately owned by Chinese interests.

The ferment has also swept into academia and high finance. Newly surfaced emails suggest that former Treasury Secretary Lawrence Summers maintained a close personal relationship with the daughter of a former vice minister of finance in China, during a period in which Beijing was expanding its Belt and Road Initiative. While Summers has long defended his academic and advisory work as part of routine international engagement, the correspondence has fueled debate about how informal networks can blur the lines between scholarly exchange, policy influence, and geopolitical competition.

For Washington, the accumulation of such cases reinforces a broader concern that Chinese intelligence and state-linked commercial entities are probing the seams of American politics, academia, and security infrastructure.

It also strengthens the argument of lawmakers who contend that the U.S. requires tighter oversight of foreign ownership structures, more rigorous vetting of contractors and insurers with access to federal personnel, and clearer boundaries around academic partnerships.

Whether these cases mark a temporary spike in exposures or the beginning of a more systematic reckoning remains to be seen, although few doubt that Beijing’s appetite for information will remain undiminished.

The birthplace of civilization

Israel–Lebanon tensions deepen as Beirut unable to resist Hezbollah pressures

Tensions between Israel and Lebanon are worsening as disagreements over Hezbollah’s disarmament collide with growing American frustration over Beirut’s political direction.

As we noted yesterday, Washington signaled its displeasure by cancelling the planned visit of the head of Lebanon’s armed forces to the U.S., a rare diplomatic snub that reflects concern that the current government is drifting into Hezbollah’s orbit.

Adding to this concern, Lebanese media are today reporting that Hanine Sayyed, Lebanon’s Minister of Social Affairs, has issued decision granting Hezbollah fighters injured in the recent Israeli “pager explosion” operation access to official disability cards and state-funded benefits.

Israel is continuing to pressure militant groups in Lebanon from the air.

An Israeli strike in the village of Tiri in the Bint Jbeil district killed one person and injured eight others, including children traveling on a school bus.

The incident comes a day after a Hamas training site inside the Ain al-Helwe refugee camp was attacked. According to Lebanon’s Ministry of Health, at least four people were killed in the latest round of violence.

Meanwhile, former Israeli Prime Minister Naftali Bennett announced last night that Israel’s Iron Beam laser-defense system is ready for full operational deployment. Advocates of the system say it promises a dramatic reduction in interception costs, which currently approach $100,000 per missile, and could reshape the economics of Israel’s air-defense strategy, further undermining the ability of Hezbollah to threaten Israel militarily.

U.S. elevates security ties with Saudi Arabia amid wide-ranging investment push

The United States has formally designated Saudi Arabia as a Major Non-NATO Ally, a status that deepens security cooperation and accompanies the new U.S.–Saudi Strategic Defense Agreement.

Riyadh is expected to announce multi-billion-dollar investments in U.S. artificial-intelligence infrastructure, part of a broader diversification campaign linked to Crown Prince Mohammed bin Salman’s economic transformation plans.

Negotiators are also finalizing agreements on civilian nuclear energy, expanded defense sales, and a portfolio of targeted investments meant to advance the kingdom’s earlier pledge of contributing roughly $600 billion through a mix of sovereign-wealth commitments and private-sector projects.

U.S. officials argue that the package will anchor Saudi Arabia more firmly within the American security and technological ecosystem at a time when China has been seeking a larger foothold in the Gulf.

A central point of contention, however, remains unresolved. Washington has not yet agreed to allow Saudi Arabia to enrich or reprocess nuclear material on its territory, a step that proliferation experts warn would carry serious risks by providing the technical foundations for producing nuclear fuel, and, potentially, fissile material usable in weapons.

For now, U.S. diplomats are attempting to craft a compromise that would expand civilian nuclear cooperation without opening the door to regional competitors pursuing their own enrichment programs.

The ultimate complex system

Japan’s rising long-term yields unsettle global markets

Japan’s 30-year government bond yield has climbed to its highest level on record, an extraordinary moment for a country that spent decades anchored to near-zero interest rates.

The rise reflects a mix of weaker demand for long-dated debt, the Bank of Japan’s retreat from its ultra-loose monetary stance, and growing concern about the sustainability of a public-debt load that now exceeds twice the size of the economy.

Higher borrowing costs pose problems for Japan. For global markets, the implications extend much further.

For years, the world’s financial system relied on what traders called the “carry machine,” the practice of borrowing cheaply in one currency or market and deploying that capital into higher-yielding assets elsewhere. Japan, with its exceptionally low interest rates and chronically soft yen, formed the backbone of this structure.

The result is a growing view that the global carry machine is no longer the dependable engine it once was. The conditions that enabled vast, leveraged flows across borders, such as ultra-low rates, stable currencies, and secure yield spreads, are now fading.

Japan’s shifting yield curve is more than a domestic story. It signals that the foundations of global fixed-income strategy are being rewritten, with consequences that will echo through bond markets, emerging-market finance, and the wider landscape of global financial and geopolitical risk.

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