Washington, DC

1. Primary results trickle in
2. Shipbuilding plan questions
3. More FISA problems
4. Crypto bill impasse
5. Sanders-Trump axis
6. House franking controversy
7. LGBTQ support lags
8. China vs. Japan

PDB: Pentagon hires Jan. 6 rioter

Bessent, Rubio testify on Capitol Hill … US, Iran exchange heavy fire … OECD releases economic outlook

Trump loses in Iowa, while Dems advance

President Donald Trump’s endorsed candidate for Iowa governor lost his primary last night, as every faction of the Democratic Party claimed some victory in six state contests. Iowa Rep. Randy Feenstra conceded defeat to conservative Zach Lahn, who’ll face Democrat Rob Sand in a race that both parties expect to be competitive. In New Jersey, progressive groups boosted antiwar surgeon Adam Hamawy to victory in a safe seat; Democratic campaign groups celebrated veteran Rebecca Bennett’s victory in the swingy 7th congressional district, where incumbent GOP Rep. Tom Kean Jr. has been invisible for months, citing unspecific health issues. DC Democrats were also pleased by state Rep. Josh Turek’s victory in Iowa’s Senate primary, and were waiting on late-cast ballots from Montana and California to find out who voters nominated there.

— David Weigel

Trump shipbuilding plan mimics Phelan’s

Former Navy Secretary John Phelan — ostensibly fired due to insufficient progress on a new US shipbuilding plan — circulated a draft shipbuilding proposal before his ouster, reviewed by Semafor, that appears largely identical to the official version his successor released, Shelby Talcott reports. The final document, published under acting secretary Hung Cao, includes the same number of ships, as well as the same theories on the administration’s “Gold Fleet” and more. The virtually unchanged shipbuilding plan raises questions about whether the pace of shipbuilding will change under the Navy’s new leadership, and whether Phelan was pushed out for reasons beyond reported disputes about that topic. Other theories reported at the time suggested his ouster had more to do with personnel disputes between him and Defense Department leadership.

DNI pick complicates FISA renewal

Trump’s decision to tap Bill Pulte as acting director of national intelligence will complicate action on renewing warrantless surveillance powers ahead of a looming deadline. Sen. Mark Warner, D-Va., the top Senate Intelligence Committee Democrat, said Pulte’s appointment would “absolutely” make renewing FISA’s Section 702 more difficult. Democrats were already worried about how the Trump administration wields the powerful tools, and their low opinion of Pulte is making things worse. “The very nature of our collection is now going to be put in the hands of somebody who has a history of seeking out private information for political gain,” said Sen. Chris Murphy, D-Conn. Republicans will need at least some Democratic votes to pass a renewal of the spy powers, and they face divisions of their own over the House’s addition of a provision banning a central bank digital currency to the renewal measure.

— Nicholas Wu

Pressure builds for crypto compromise

The Trump administration is increasingly acknowledging that failing to strike a deal with Democratic senators on the president’s ability to profit from cryptocurrency will likely prevent sought-after digital asset legislation from passing, people familiar with the talks told Semafor. “There are a lot of people on Capitol Hill who recognize that it’s a gating function,” one of the people said of a deal. Now, “it’s being recognized by the administration that it’s a gating function, too.” The issue has so far been elevated to senior White House officials, though not Trump himself. “We’re at relatively early stages,” a White House official told Semafor, who said officials are discussing “how to protect the interests of the administration and the constitutional separation of powers, and to get this bill done.” But potential contours of a deal remain unclear.

— Eleanor Mueller

Vulnerable members spend big on comms

Franking, or the official communications sent out by Capitol Hill offices, is becoming a flashpoint in contested House elections. Of the 10 biggest spenders on mail and official communications during the last quarter of 2025 and first quarter of 2026, nine face competitive primary or general elections, or are running for higher office, according to House disclosures. One of them, Rep. April McClain Delaney, D-Md., spent about $380,000 on official communications during that time. She faces a primary challenge from her predecessor, former Rep. David Trone; Trone spokesperson Gaby Krevat said in a statement that McClain Delaney was “siphoning off nearly $400,000 in taxpayer funds to try to get herself re-elected — now the 7th most in all of Congress since David entered the race.” McClain Delaney campaign manager Nick London dismissed the accusation as the “height of hypocrisy.”

— Nicholas Wu

Sanders proposes govt stakes in AI firms

The political horseshoe is bending around businesses benefitting from the AI boom. Sen. Bernie Sanders, I-Vt., is proposing a bill that would give the federal government a stake in leading AI companies, a bid to help the American public benefit from the technology while carving an avenue for the government to influence its development. The idea is a close cousin of Trump’s move to take government stakes in several companies sitting in strategic sectors, like Intel and MP Materials. But in a sign that Trump’s muscular federal role may not survive his presidency, Sanders’ idea is landing poorly with lawmakers in both parties wary of extreme government intervention. “I don’t want the government involved in the private sector,” said Sen. Ron Johnson, R-Wis. Sen. John Fetterman, D-Pa., said the proposal sounded “communist.” The White House didn’t return a request for comment.

— Morgan Chalfant

Republicans turn from LGBTQ support

Support for LGBTQ people among the American public is on the decline, largely driven by sagging Republican acceptance of same-sex marriage and transgender rights. Sixty-five percent of US adults currently say same-sex marriages should be legal, according to Gallup, down from a peak of 71% in 2022 and 2023. Sixty-two percent view gay and lesbian relations as moral, the lowest recorded in a decade, while 38% say it’s “morally acceptable” to change one’s gender — down from 46% when Gallup first asked the question five years ago. The data suggests Republicans are becoming more socially conservative amid debates about policies allowing transgender people to play sports and use public bathrooms. Thirty-seven percent of GOP voters said same-sex marriages should be legal, down from 55% five years ago; independents’ approval dropped just six points in the same time, while Democrats’ support has held steady.

View: China created the rival it fears

China and Japan weren’t fated to become 21st-century enemies. Mao Zedong once joked to a Japanese visitor that without the imperial army, the Chinese people wouldn’t have rallied around the Communist Party, and so “there is nothing to be sorry about.” Deng Xiaoping saw Japan as a model for his flagship “Four Modernizations” project and brought in Japanese experts to advise on everything from forestry to steelmaking. But more recently, Japan-bashing has become the core of a strident Chinese nationalism, with disastrous consequences. Indeed, Beijing’s nonstop demonization, economic coercion, and regular harassment of Japan have created the monster it most fears. At a time when American allies are starting to question Washington’s reliability and staying power — Defense Secretary Pete Hegseth added to doubts by failing to mention Taiwan in a recent speech to Asian allies — Japan is acting with new swagger.

Blindspot: Hamas and homelessness

Stories that are being largely ignored by either left-leaning or right-leaning outlets, curated with help from our partners at Ground News.

What the Left isn’t reading: The Israel Defense Forces killed a member of Hamas who took part in kidnappings during the Oct. 7, 2023, attacks on Israel.

What the Right isn’t reading: The number of homeless people residing in California dropped between 2024 and 2025, according to federal data. 

Beltway Newsletters

Punchbowl News: “[Bernie] Sanders would like to put AI in a box and lock it up and make it go away. That’s not reality,” said Rep. Josh Gottheimer, D-N.J., who co-leads the party’s AI commission.

Axios: “The shift over the past few weeks has been subtle but unmistakable: John Thune sounds like he’s had it with President Trump.”

White House

• Acting Attorney General Todd Blanche said President Trump will still be protected from IRS investigations under a settlement with the agency, even