Friday, July 25, 2025

Subpoenas, searches, secrets

MORNING REPORT

Friday, July 25 | By Alexis Simendinger & Kristina Karisch

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In today's issue:

▪ Day 2 of DOJ's Maxwell interview

▪ Trump squeezes Powell with Fed tour

▪ Dems urge leaders to hold firm on budget

▪ US blames Hamas for ceasefire impasse

Epstein saga: Subpoenas, searches, secrets

President Trump's supporters, agitating to view government files on Jeffrey Epstein, are still waiting.

The Department of Justice is meeting again today with longtime Epstein associate and convicted accomplice Ghislaine Maxwell as the Trump administration says it is heeding pressure to try to produce information from the government's investigation of the disgraced financier.

Deputy Attorney General Todd Blanche, following an initial roughly five-hour interview with Maxwell in a Florida courthouse Thursday, said his department "will share additional information about what we learned" from Maxwell "at the appropriate time." Maxwell is serving a 20-year prison sentence on sex-trafficking charges and is appealing her case to the Supreme Court. The DOJ has contested her appeal.

Maxwell's attorney, David Oscar Markus, said his client "honestly answered every question" Blanche posed Thursday and expressed gratitude to the government for trying to "uncover the truth."

The administration has divulged nothing new since a July 6 Justice Department memo saying it had no "client list" to reveal and no Epstein files to make public.

Under pressure and with Trump's approval, Attorney General Pam Bondi asked courts to unseal grand jury testimony from the government's Epstein investigation and was turned down by a judge this week. The request is related to just one of multiple grand juries, and additional requests are pending.

The department and the White House, struggling to contain the political firestorm, are trying to widen the government's search to appease supporters who during the campaign praised candidate Trump for pledging to release Epstein materials if reelected.

The president on social media Thursday repeated his support, with pending court approval, to reveal grand jury information. He argued such a move would disprove what he labeled "the Jeffrey Epstein SCAM."

Bondi, according to The Wall Street Journal, informed Trump in May that his name appeared in the government's Epstein files, among numerous other figures.

The president has publicly blamed Democrats and filed a libel lawsuit against the Journal after it described a "bawdy" birthday card it said Trump sent to Epstein in 2003, which the president denied writing.

The Journal on Thursday reported the leather-bound birthday album also included messages from former President Clinton and another five dozen influential well wishers.

"It's reassuring isn't it, to have lasted as long, across all the years of learning and knowing, adventures and [illegible word], and also to have your childlike curiosity, the drive to make a difference and the solace of friends," the Clinton note read, according to the Journal.

A spokesperson for the former president declined to comment, referring the newspaper to a previous statement saying Clinton cut ties with Epstein more than a decade before the financier's arrest in 2019 and did not have knowledge of the alleged crimes.

Blanche, a former Trump personal defense attorney, this week turned his attention to Maxwell just as House Republicans, responding to constituents, issued a subpoena for her to be deposed by the GOP-led House Oversight and Government Reform Committee.

During her 2021 trial, Maxwell chose not to testify. Speaker Mike Johnson (R-La.) this week suggested she might not be a credible witness.

In the House on Wednesday, the political furor shut down regular business. Johnson, who initially supported MAGA demands and urged Bondi to be more transparent, sent members home for the August recess a day early when efforts to move beyond the controversy failed.

▪ NBC News: Trump critic Rep. Thomas Massie (R-Ky.) is winning over MAGA allies with his push for the Epstein files. "They're trying to beat up on me to keep everybody else in line here, and I think it's not working," Massie said of the president and his allies. "I think it's going to backfire tremendously."

Democrats, taking advantage of the rift within the Republican Party, have been on the offense, aware that a majority of voters in recent polls disapprove of Trump's handling of the Epstein files. The minority in Congress is calling on Bondi to testify about the reported heads-up she gave the president about appearing in the Epstein files.

Rep. Ro Khanna (D-Calif.) said Thursday he wants to subpoena the Epstein estate for the Journal-reported birthday book.

"I enjoy the hell out of it," California Gov. Gavin Newsom (D) said during a podcast interview while discussing the GOP's discomfort and Trump's reaction. "They created this mess. Now they've got to clean it up," he added. "I hope our party gins this up much more."

CHANGE THE CHANNEL: Two GOP senators on Thursday urged the appointment of a special counsel to probe whether former President Obama was involved in an alleged effort to undermine Trump's White House bid in 2016, echoing an unsubstantiated assertion by Trump raised this week amid efforts to shift public attention away from the Epstein storm.

Sen. Lindsey Graham (R-S.C.), a close Trump ally, and Sen. John Cornyn (R-Texas), who is seeking Trump's Senate reelection endorsement amid a tough primary challenge, both sit on the Senate Judiciary Committee. They say they want to know whether Obama and his administration "manipulated" information to try to harm Trump and help the 2016 presidential campaign of former Secretary of State Hillary Clinton.

The senators' interest in a special counsel investigation aimed at Democrats followed Wednesday's release by the White House of documents related to Russia and the 2016 election. Critics suggested the White House resurrected Trump's grievances tied to what he calls a "Russia hoax" as a way to rekindle fealty among supporters.

Obama's spokesperson issued a rebuke: "These bizarre allegations are ridiculous and a weak attempt at distraction."

▪ The Hill: Senate Republicans on Thursday backed the Obama special counsel idea raised by Graham and Cornyn.

Editor's note: Blake Burman's "Smart Take" will return next week.

3 Things to Know Today

The Federal Communications Commission has cleared the way for an $8 billion merger between Paramount and Skydance Media, three weeks after Paramount, owner of CBS, settled a $16 million lawsuit brought by Trump against "60 Minutes."
Commerce Secretary Howard Lutnick threatened TikTok with a shutdown if China won't agree to U.S. control of the video sharing app.
UnitedHealth Group confirmed Thursday it is responding to Justice Department civil and criminal investigators as part of a federal probe dealing with Medicare fraud.

LEADING THE DAY

FED RENOVATIONS: Trump and Federal Reserve Chair Jerome Powell went back and forth in front of reporters Thursday over the president's claims about cost overruns at the Fed headquarters in Washington.

The side-by-side took place as Trump began touring the Fed building, in what is widely considered the latest chapter in his pressure campaign to get Powell to lower interest rates or resign from his post.

The president asserted during the visit that construction costs for the ongoing renovation of two historic Fed buildings have topped $3.1 billion, prompting an immediate fact-check from Powell.

"It looks like it's about $3.1 billion. Went up a little bit, or a lot," Trump said, claiming the cost of the renovation had increased from the previously estimated $2.5 billion.

Powell, standing next to Trump, shook his head.

"I'm not aware of that, Mr. President," Powell said. "I haven't heard that from anybody at the Fed."

Trump pulled out a piece of paper from his suit jacket that he said backed up his estimate. Powell told the president that it included the cost of another building that had been completed five years ago.

"It's part of the overall work," Trump said.

"It's not new," Powell responded.

White House deputy chief of staff James Blair and White House budget chief Russell Vought have led the charge in focusing on the renovations, and the president earlier this month suggested the cost overruns could be a fireable offense for Powell. Trump has since backed off and indicated he does not intend to fire the chair before his term expires next May.

▪ The Hill: Five takeaways from Trump's visit to the Federal Reserve.

HABBA NAMED ACTING US ATTORNEY: Trump's pick for New Jersey's top federal prosecutor Alina Habba on Thursday said she would continue on in the position despite a judicial decision declining to extend her interim status and instead opting to replace her. The Trump administration doubled down, declaring Habba is now the state's acting U.S. attorney.

Trump withdrew Habba's nomination to be the state's U.S. attorney and she was appointed first assistant U.S. attorney, generally the No. 2 role. But she becomes acting U.S. attorney because the position is now vacant. The announcement came hours after Desiree Grace, the attorney tapped by the U.S. District Court for the District of New Jersey judges to succeed Habba as the top prosecutor, said she was prepared to assume the role.

MORE ADMINISTRATION NEWS:

▪ The Hill: Trump signed an executive order on Thursday to push cities to curb homeless sleeping and drugs on urban streets.

▪ The Hill: The administration labels a beef-import offer by Australia as a "major breakthrough."

▪ The Hill: A new Gallup poll shows Trump's overall approval rating is 37 percent, having lost favor with independents.

CITIES AND STATES: Obama is set to appear at a Democratic redistricting group's fundraiser next month in Martha's Vineyard, as the party looks to go toe-to-toe with Republicans' redistricting push in Texas.

Democrats are pushing for blue states to consider redrawing their House maps to offset similar efforts taking place in Texas, where Trump has said he's looking to pick up five House seats.

The redistricting tit-for-tat could be previewing a tumultuous midterm cycle. Republicans are already bracing for an unfavorable political environment next year given the historic trends that run against the president's party in midterm cycles.

COURTS ROUNDUP:

▪ The Hill: The Supreme Court on Thursday halted an appeals court ruling that prevents private groups from challenging election maps under the Voting Rights Act in seven states.

▪ The Hill: The Trump administration asked the Supreme Court on Thursday to allow it to continue moving forward with canceling National Institutes of Health grants over their connections to diversity initiatives.

▪ The Hill: The administration on Thursday sued New York City over its "sanctuary cities."

WHEN & WHERE

The president will depart the White House at 8 a.m. to travel to Turnberry, Scotland, arriving at 8:20 p.m. local time. Trump is scheduled to be in Scotland until Tuesday.
The House is in recess and resumes work in Washington on Sept. 2.
The Senate will convene at 3 p.m. on Monday.

ZOOM IN

DEMS AMP UP PRESSURE: House Democrats are ramping up the pressure on their Senate colleagues to hold the line in opposition to any Republican spending bills, warning that acceptance of partisan legislation would prove more harmful than a potential shutdown — and trigger an outcry from the party's already deflated base.

House Democrats were virtually united against a GOP spending package in March, only to see Senate Democrats — most notably Senate Minority Leader Chuck Schumer (N.Y.) — help the GOP advance it into law. House Minority Leader Hakeem Jeffries (D-N.Y.) is already warning that a Republican-only spending package, due in September, is "dead on arrival." Even those Democratic lawmakers most critical of Schumer's strategy in March are predicting the chambers will be united in the fall.

"Leader Jeffries putting that strong line down is something I support, and something I think that our whole party will rally around," said Rep. Alexandria Ocasio-Cortez (D-N.Y.).

WHITE HOUSE EYES MORE CUTS: The administration is weighing a rare measure that could allow them to unilaterally cancel some federal funding previously authorized by Congress without lawmakers' say so.

Vought, the White House budget chief, said earlier this month the measure known as "pocket rescissions" is one of the options "on the table" for the administration in a quest to reduce some federal spending.

But even some Republicans are uneasy about the idea and uncertain about its legality. The Hill's Aris Folley breaks down what to know about the idea.

▪ The Hill: Trump signed the GOP-passed rescissions package Thursday canceling about $9 billion that had been approved for foreign aid and public broadcasting.

KLAIN ANSWERS GOP QUESTIONS: Former White House chief of staff Ron Klain voluntarily appeared as a witness before the House Oversight and Government Reform Committee on Thursday. Committee Chair James Comer (R-Ky.) is investigating whether former President Biden's top White House aides concealed signs of mental decline in the then-president.

Klain's appearance stands in contrast with several other former Biden aides who refused to answer GOP questions, invoking their Fifth Amendment rights. Comer said Klain was "fairly responsive" Thursday.

▪ The Hill: The top Democrat on the Senate Foreign Relations Committee on Thursday helped advance former national security adviser Mike Waltz, Trump's nominee for ambassador to the United Nations.

▪ The Hill: The Trump administration appears to be drastically reducing the federal funds it offers to help states head off future natural disasters.

▪ The Hill: The crypto lobby rapidly expanded its presence on Capitol Hill in recent months as lawmakers took their first bite at legislation to regulate digital currency.

ELSEWHERE

ISRAEL: The U.S. is bringing home its negotiating team from Doha, Qatar, "after the latest response from Hamas, which clearly shows a lack of desire to reach a ceasefire in Gaza," special envoy Steve Witkoff announced on social media.

"While the mediators have made a great effort, Hamas does not appear to be coordinated or acting in good faith," he said. "We will now consider alternative options to bring the hostages home and try to create a more stable environment for the people of Gaza."

An Israeli official told Axios negotiators were recalled to try to "shake up" the talks and put additional pressure on Hamas to agree to the proposal.

Meanwhile, as starvation levels rise in Gaza, a far-right Israeli government minister said Thursday that Israel had no duty to alleviate hunger there and was seeking to expel its population. Amichay Eliyahu's comments were quickly condemned by Israeli opposition politicians. Polling suggests a majority of Israelis favor reaching a ceasefire and hostage release deal.

▪ The New York Times: French President Emmanuel Macron announced late Thursday that France would recognize Palestinian statehood.

UKRAINE: Ukrainian President Volodymyr Zelensky plans to ask European allies to help pay for higher salaries for troops as Kyiv stares down a shortage of recruits.

"Previously, Europeans refused to provide funding for the salaries of our military personnel, only for weapons," Zelensky told reporters Thursday. "Our service members themselves can be the weapon that protects everyone."

Mobilization campaigns in Ukraine are increasingly unpopular as the war stretches into its fourth year, and Zelensky's government wants to motivate volunteers by offering substantial payments. Russia has long offered large signing bonuses and high salaries to lure tens of thousands into its armed forces.

▪ Reuters: Zelensky said Ukraine has secured three Patriot systems from European partners and is looking to finance seven more.

▪ The New York Times: Zelensky on Thursday submitted a new bill that would restore the independence of Kyiv's anti-corruption agencies after widespread protests.

OPINION

How to end the Epstein follies, by The Wall Street Journal editorial board.
Inside the rise of the multiracial right, by Daniel Martinez HoSang, guest essayist, The New York Times.

THE CLOSER

And finally … 👏👏👏 Kudos to this week's Morning Report Quiz winners! They used their familiarity with Shark Week and puzzled through some of Washington's brushes with oceangoing apex predators.

Here's who went 4/4: 🌊 Chuck Schoenenberger, Lynn Gardner, Carmine Petracca, Harry Strulovicci, Stan Wasser, Mark R. Williamson, Jess Elger, Stanton Kirk, Rick Schmidtke, Luther Berg, Jenessa Wagner, Steve James, Brian Hogan, Pam Manges and Mark Roeddiger.

As we mentioned, it's Shark Week on the Discovery Channel, a popular tradition since 1988 that got its start when executives sought to boost summer viewership.

Former President George H.W. Bush, a decorated fighter pilot during World War II, floated for four hours in a raft in what later was described as "shark-infested waters" after being shot down at age 20 and then rescued. He recounted the experience decades later.

Rep. Rob Wittman (R-Va.), a former marine scientist, sponsored the SHARKED Act (Supporting the Health of Aquatic systems through Research, Knowledge, and Enhanced Dialogue Act), which the House passed for a second time this year.

Former President Biden signed into law the Shark Fin Sales Elimination Act, aimed at prohibiting the sale, purchase and possession of shark fins in the United States.