“President Trump’s endorsement of suspending federal gas taxes pushes the idea higher on the political radar, but it still faces long odds,” Axios reports.
“Why it matters: Some Republicans rushed to introduce bills, and a few Democrats have already endorsed the idea — but there are still serious obstacles that could keep Trump’s comments from becoming reality.”
President Trump told CBS News that he would like to pause the federal 18.4 cents a gallon tax on gasoline “for a period of time” — though it’s unclear how much of the tax cut would reach consumers at the pump.
Bloomberg: “The average national price for regular gasoline has surged since the US and Israel attacked Iran in February, reaching $4.52 a gallon as of Sunday.”
“Democrats appear poised to retake the House, and Rep. Richard Neal is quietly making plans,” Politico reports.
“The Massachusetts Democrat has a clear path back into the chairmanship of the Ways and Means Committee and, behind the scenes, he’s laying the groundwork for a second stint as his party’s point man on all things tax, as well as trade, health care and Social Security.”
“A federal judge ruled Thursday that the U.S. DOGE Service did not have the authority to cancel National Endowment for the Humanities grants, which made up more than $100 million in congressionally appropriated funds,” the Washington Post reports.
New York Times: “The U.S. government learned last week that it may have reached an unfortunate milestone: The size of its debt surpassed the nation’s total economic output.”
“It was a striking imbalance, according to early estimates, one that the country has experienced only in rare circumstances — briefly during the pandemic, and in the aftermath of World War II. But the development barely seemed to register in the nation’s capital, where few policymakers bothered to acknowledge the latest warning sign about the government’s poor fiscal health.”
Washington Post: “A panel tasked with shaping the future of the Federal Emergency Management Agency voted Thursday to approve a report recommending that the Trump administration gradually cut FEMA by 50 percent, among other significant overhauls meant to streamline the beleaguered agency.”
“The report also recommends that FEMA shift leadership of emergency response and recovery to the state level, make changes to some of its most relied-on programs, and do away with reviews that members said can often slow disaster response and recovery.”
Rolling Stone: “You probably missed an obscure but important milestone our country hit last week: America’s debt passed 100 percent of our gross domestic product.”
“So what, you say? That sounds boring and technical. It’s actually really fucking important. It means that America’s accumulated debt — our impulse to borrow from other people to pay for the things we want and need — is now larger than the total size of the American economy. It shouldn’t take an economist to recognize this as bad and definitionally unsustainable.”
“The last time our deficit passed 100 percent of GDP, it was World War II. But when countries pass this milestone in ordinary times, it is a formula for decline that has accompanied the fall of republics and empires alike.”
Wall Street Journal: “The U.S. national debt now exceeds 100% of gross domestic product, crossing a once-unthinkable threshold, on the way toward breaking the record set in the wake of World War II.”
President Trump announced he would be removing tariffs on Whiskey from Scotland after a request from King Charles.
Said Trump: “The King and Queen got me to do something that nobody else was able to do, without hardly even asking!”
“The Federal Emergency Management Agency is reversing job cuts that Kristi Noem, the former homeland security secretary, had overseen before she was fired last month,” the New York Times reports.
Politico: “President Donald Trump signed bipartisan legislation on Thursday to fund key agencies at the Department of Homeland Security, officially concluding the record-breaking shutdown.”
The Pentagon said President Trump’s Iran war has cost the United States at least $25 billion, driven primarily by the military’s use of munitions, the Financial Times reports.
Bloomberg: “Republican lawmakers are looking at ways to lower taxes on capital gains as the party searches for new ways to woo voters worried about the cost of living heading into November’s midterm elections.”
“A proposal to index capital gains for inflation could be in play for a tax-and-spending package later this year, though the likelihood of a bill coming together before the midterms remains a long shot. Some Republicans have also pushed President Donald Trump’s administration to make that change unilaterally.”
Bloomberg: “Key congressional Republicans are poised to break with Donald Trump on his proposed 44% raise for the Pentagon, a rare act of defiance that signals the president’s weakening grip on Washington as the midterm elections near and he quickly approaches the back half of his second term.”
Annie Lowrey: “Washington is egging on a nationwide tax revolt. Politicians from both parties are slashing rates and spinning loopholes. They’re telling workers that they shouldn’t have to pay for social services, and that even prosperous Americans are overtaxed.”
“In doing so, they are imperiling the country’s financial security and making it harder for future politicians to pass transformative initiatives. Uncle Sam is going to need to raise some money. And that’s going to be hard to do if Americans see their tax returns not as a fair contribution to the greater good but as a punishment or an injustice.”
“The shooting at the White House Correspondents’ Dinner is putting more pressure on Congress to swiftly end the 73-day Department of Homeland Security shutdown,” Semafor reports.
“The Secret Service falls under DHS, and the Trump administration estimates its ability to pay employees under executive order will run dry at the end of the week, according to multiple people in both parties.”
“Still, it’s an open question whether the shooting will be enough to resolve the impasse.”
“Backers of the proposed California billionaire tax believe they have gathered enough signatures to get the initiative on the November ballot, according to people familiar with the campaign, likely kicking off a bruising battle over the initiative,” the Wall Street Journal reports.
“More than 1.5 million people have signed a petition to get the one-time, 5% wealth tax on statewide ballots in November, the people said. They said they expect that will be more than enough to clear the required 875,000-signature threshold, even after accounting for illegible or invalid signatures.”
Politico: “Senate Budget Chair Lindsey Graham unveiled a fiscal blueprint Tuesday paving the way for the GOP’s party-line immigration enforcement plan.”
“The budget resolution is the first step in Republicans’ two-step plan to deliver a bill funding Immigration and Customs Enforcement, Border Patrol and other agencies to President Donald Trump’s desk by his self-imposed June 1 deadline.”
Taegan Goddard
Taegan Goddard is the founder of Political Wire -- which for more than two decades has been one of the nation's most influential political news sites.
More about Taegan Goddard →