MORNING REPORT

Tuesday, September 1 | By Jared Gans

View Online | Sign up

Listen and Subscribe:

In today's issue:

▪ Generational battles in Massachusetts

▪ Army secretary hands in resignation

▪ Supreme Court lets Trump's ballroom go ahead

▪ Kalshi issues platform bans

Tough primary season for incumbents reaches grand finale

A brutal primary cycle for congressional incumbents will face its final test cases today in Massachusetts as longtime officeholders seek to fend off challenges from much younger opponents.

Sen. Ed Markey (D-Mass.) appears likely to comfortably win his race against the more moderate and much younger Rep. Seth Moulton (D-Mass.), setting him on track for another six-year term.

But things aren’t looking as rosy for Rep. Stephen Lynch (D-Mass.), who has served in the House since 2001. This year’s challenge from attorney and voting rights advocate Patrick Roath is the toughest of his career.

Roath, who is 39 years old, is running to the 71-year-old Lynch’s left, attacking him for votes on immigration, healthcare and abortion. He’s refused to accept corporate PAC money and declared support for abolishing U.S. Immigration and Customs Enforcement and instituting term limits for members of Congress.

Lynch has meanwhile pointed to his decades of experience and accomplishments for Massachusetts’s 8th Congressional District. But that experience may be a vulnerability in a year that has seen members of both parties fall to anti-incumbent sentiment.

So far this cycle, 11 incumbent House members have lost primaries to challengers, seven of whom are Democrats. The total is the highest number of House members defeated for renomination in a nonredistricting year since at least 1960.

This year has functioned as a redistricting year of sorts with several Republican- and Democratic-led states redrawing their lines this year as part of the national redistricting war. But only one member — Rep. Al Green (D-Texas) — lost his primary after being forced to run directly against another incumbent.

One additional Republican will be ousted in November as GOP Reps. Ken Calvert and Young Kim will face off for a second time this year, as a result of California’s redistricting and jungle primary system.

Rep. Julie Johnson (D-Texas) also lost her primary after her district was redrawn, but that was because former Rep. Colin Allred (D-Texas), after losing a Senate run two years ago, mounted a political comeback.

In addition, two Senate incumbents — GOP Sens. John Cornyn (Texas) and Bill Cassidy (La.) — both lost to primary challengers, an occurrence that hasn’t happened since 2010.

Lynch isn’t the only incumbent House Democrat facing a primary challenge in Massachusetts. Rep. Richard Neal (D-Mass.) is trying to fend off a primary challenge from teacher Jeromie Whalen, while AI researcher Jason Poulos is challenging Rep. Jake Auchincloss (D-Mass.).

But Roath is much more well-funded, has attracted support from several big names and seems to be best positioned to advance.

Roath has outraised Lynch in the primary, racking up nearly $1.3 million compared to the incumbent’s roughly $900,000, according to the latest Federal Election Commission filings.

A former aide to former Massachusetts Gov. Deval Patrick (D), Roath has notched a key endorsement from his old boss as well as David Hogg, the gun control advocate and founder of the political group Leaders We Deserve.

Roath also has support from The Boston Globe’s editorial board and multiple teachers’ unions.

A few other tests of the establishment will take place before the primary cycle fully wraps up. Rep. Chris Pappas (D-N.H.) is trying to win the Democratic nomination for Senate next week against a progressive opponent, while Rhode Island Gov. Dan McKee (D) is facing a challenge from former CVS executive Helena Foulkes.

But Tuesday seems likely to mark the last real chance of this cycle for an incumbent congressman to be taken down. If Lynch does come up short, that would bring the number of defeated House members to an even dozen.

▪ The Hill Insider: Democratic incumbents try to defy generational change push.

▪ The Hill Insider: Democrats argue they’re the normal ones.

3 Things to Know Today

Rep. Thomas Massie (R-Ky.) read a dozen names on the House floor who he said were “coconspirators” of disgraced financier Jeffrey Epstein, calling for them to be investigated and prosecuted. He said he’s looking to force a vote on legislation to require the release of the remaining Epstein files still being kept private.
Joint Chiefs of Staff Gen. Dan Caine told Sen. Elissa Slotkin (D-Mich.) in a letter that there are no plans to send the military to the polls in November’s midterm elections. Slotkin had raised concerns about comments from the president about nationalizing the midterms in an initial letter to Caine.
A jury has convicted Duane Davis of first-degree murder in the 1996 killing of rapper Tupac Shakur, finding after less than three hours of deliberation that he orchestrated the shooting. Davis is the first and only person convicted of a crime in connection with Shakur’s death. His sentencing is scheduled for October.

LEADING THE DAY

HEADING OUT: Army Secretary Dan Driscoll will leave his role at the Pentagon in the coming days after months of clashes with Defense Secretary Pete Hegseth, two sources familiar with internal deliberations confirmed to The Hill’s Filip Timotija.

One source said Driscoll spoke with President Trump on Monday about the “current state” of the Army and submitted his resignation. A source familiar with the matter said Dave Fitzgerald, the deputy under the Army secretary, is also expected to resign from his role this week.

Driscoll’s spokesperson declined to comment. The Wall Street Journal first reported Driscoll’s resignation.

The secretary’s departure would leave the Army without a Senate-confirmed leader. Gen. Christopher LaNeve, a close ally to Hegseth, has been serving as the Army’s acting chief of staff since Hegseth ousted Army chief of staff Gen. Randy George in April.

The Hill and other outlets previously reported that Driscoll was looking to leave the administration “around” Labor Day, but the White House wanted him to stay on at least through the midterms.

Driscoll and Hegseth have engaged in a battle for months over influence in the department, as Hegseth has fired more than two dozen senior military officers since taking leadership of the Pentagon, including those close to Driscoll.

Hegseth is considering Sean Parnell, one of his top advisers and the Pentagon’s chief spokesperson, to replace Driscoll.

▪ Axios: Why Driscoll resigned.

▪ The Hill: Pentagon brings on Grok, ChatGPT for military use.

GREEN LIGHT: A divided Supreme Court voted 5-4 to allow construction on Trump’s White House ballroom to go forward, halting a lower court ruling that restricted the project until Congress gave additional approval.

Five of the court’s conservatives, including all three of Trump’s appointees, sided with the president, finding the preservationist group that filed the lawsuit likely didn’t have a right to sue. Chief Justice John Roberts and the court’s three liberal justices dissented.

The decision isn’t final, and the case could return to the Supreme Court. But the ruling will allow construction to continue unimpeded in the meantime.

The Trump administration has argued that the ballroom is necessary for national security and the president’s safety, particularly in light of the various safety incidents involving the president, including the assassination attempt against him during the 2024 campaign.

The National Trust for Historic Preservation has argued that Trump exceeded his authority in tearing down the East Wing and starting to build the ballroom without congressional approval.

▪ The Hill: Trump knocks judge in Kennedy Center case.

▪ The Hill: GOP campaign arms ask court to intervene in TV ad rate case.

DRUG DEALS: Trump announced new Medicaid drug pricing agreements with nine midsize biotechnology and pharmaceutical companies on Monday.

Under the deals, the companies will charge state Medicaid programs the same prices for certain outpatient drugs as they charge foreign countries. In exchange, the companies will receive protection from pharmaceutical tariffs.

The additions being the total number of drug companies that have agreed to provide most favored nation pricing in Medicaid and provide their medications on the TrumpRx website to 26.

The administration has touted these agreements as part of its affordability message to the public ahead of the midterms, but details of the deals have been mostly kept confidential. And critics argue there’s little substance to Trump’s claims of savings.

▪ The New York Times: High cost of cancer drugs becomes a new normal.

▪ The Hill: GOP gambles on midterm dividends from MAHA movement.

PILING ON: Forecasters are warning more storms are possible at the Grand Canyon as two people have been confirmed dead amid flash flooding in the area.

Rain and thunderstorms could bring more flooding after dozens of visitors have already been evacuated from the park. The Grand Canyon is in the midst of its rainy season, a particularly dangerous time for visitors: A clear day can be quickly give way to downpours.

The body of a 46-year-old man was recovered Sunday evening near Crystal Rapids along the Colorado River, and at least one other body has been recovered, according to a statement from the park. More than 80 people have been rescued from the canyon, and tourists have been prohibited from staying at lodges or hotels inside the park.

Based on permits, only one person remains unaccounted for, authorities said Monday evening.

The National Park Service is asking anyone with information about campers or hikers who are unaccounted for to come forward.

▪ The Hill: State Department warns of travel to Nepal after flooding.

WHEN & WHERE

The president will participate in a pre-taped phone interview at 9 a.m. He will meet with oil and gas retailers and refineries at 1:30 p.m.
The House will convene at 11 a.m.
The Senate will meet at 12:30 p.m. for a pro forma session.

ZOOM IN

PRESSURE RISING: The president’s recent threat to have the Federal Communications Commission (FCC) punish “Meet the Press” moderator Kristen Welker is renewing concerns over the agency’s independence.

Critics of the president told The Hill’s Dominick Mastrangelo that they see Trump stepping up his use of the FCC as a tool to intimidate journalists and shape midterm coverage. And they said FCC Chair Brendan Carr is a willing participant in his effort.

“Even if the FCC gets an instruction from the president that is on its face unconstitutional, the chairman gets the message and can figure out a way to creatively use the FCC’s regulatory power to put pressure on the offending media company,” said Conor Gaffney, an attorney at the left-leaning political nonprofit Protect Democracy.

The incident stemmed from comments Welker made while teasing Sunday’s episode of NBC’s flagship show on its Washington, D.C., affiliate. She mentioned Trump’s “mixed” record in the success of his endorsed candidates this election cycle, which angered the president.

Trump said in a post on Truth Social that Welker would be reported to the FCC for “rebuke or punishment.”

Mastrangelo reports that the incident is a part of what has been a recurring theme during Trump’s second term: pressuring lead broadcasters through the FCC, which has historically been independent of the White House.

Carr has also been a staunch critic of mainstream media and received attention in December when he argued that “formally speaking” the FCC isn’t an independent agency.

▪ The Hill: Democratic FCC commissioner calls Trump’s comments ‘dangerous.’

▪ The Hill: Trump creates new headache for GOP with FCC push.

ELSEWHERE

CONSEQUENCES: The prediction market Kalshi has taken action against a controversial former congressman and a current Republican candidate in a key battleground district for bets they placed.

The market announced in filings on Monday that it has banned former Rep. George Santos (R-N.Y.) from using its platform permanently after he failed to cooperate in an investigation into wagers he placed on whether he would attend Trump’s State of the Union address earlier this year.

Santos was revealed to have placed bets while also posting on social media about his potential attendance, according to the Commodity Futures Trading Commission. He allegedly made more than $17,500.

Kalshi said in the filing that it would fine Santos an additional $71,356. The former congressman, who was expelled from the House in December 2023 and later sent to prison before Trump commuted his sentence, accused Kalshi of violating its own notices and deadlines.

The prediction market also revealed in a settlement notice Monday that it suspended North Carolina congressional candidate Laurie Buckhout for three years after finding she purchased less than $1,000 worth of contracts related to her race against Rep. Don Davis (D-N.C.).

That violated Kalshi’s guidelines that a trader cannot place any trades on an event in which they are a “decision maker” or have influence.

Buckhout cooperated with the investigation and acknowledged she bet on her own race, telling The Hill in a statement that it was a “dumb mistake” that she worked to make right once she realized it.

Both actions come after Trump’s former teleprompter operator, Gabriel Perez, was ordered to pay back the more than $100,000 he made in profits — along with a civil penalty of $65,000 — from betting on speeches that the president would be making.

▪ CNBC: Appeals court rules against betting markets.

▪ The Hill: Trump says opponents to data centers want to be ‘backwards and poor.’

OPINION

How Meta got away with a $17.1 billion slap on the wrist, Mark Weinstein writes in The Hill.
Low testosterone is a real problem, but don’t forget this major cause, Leonard Sax writes in The Hill.

THE CLOSER

And finally … The Metropolitan Museum of Art has canceled a planned exhibition for the spring honoring designer John Galliano amid continued backlash to antisemitic and racist comments he made in 2010 and 2011.

The Met said the exhibit will be replaced by another one, though the switch adds some uncertainty to next year’s Met Gala, which annually serves as the opening event.

Galliano has been considered one of the fashion world’s most celebrated talents for his designs, but his career came crashing down over the series of comments he made to bar patrons. He told them “I love Hitler” and that their mothers and forefathers, who were Jewish, would have been “gassed,” among other comments, according to The Associated Press.

He was fired as the creative director at Christian Dior over the remarks. He launched a comeback in 2014, leading the fashion house Maison Margiela for more than a decade.