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Senate set to vote on spending cuts
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This is Washington Edition, the newsletter about money, power and politics in the nation’s capital. Today, congressional correspondent Erik Wasson looks at how Congress is handling the Trump administration’s spending cuts. Sign up here and follow us at @bpolitics. Email our editors here.

Radio Silence

The decades-long Republican quest to end federal funding for the Public Broadcasting System and National Public Radio is on the verge of finally succeeding. 

Senate Republicans need just 50 votes to cut $1 billion in public broadcasting funds this week and they are on the verge of lining up those votes after a deal to spare global AIDS funds from the ax. 

The GOP has failed even during times of unified control of government to end federal funding for PBS and NPR. but President Donald Trump’s sway over Republicans looks to be enough to get it done.

OMB Director Russ Vought Photographer: Kent Nishimura/Bloomberg

Later today, the Senate will take the first procedural step toward fulfilling Trump’s request to slice about $9 billion out of this year’s spending. The House passed the cuts last month.

That will barely make a dent in the government’s $2 trillion projected budget deficit, but the effort was promised to conservatives who reluctantly just voted for a tax cut bill adding $3.4 trillion in red ink over the next decade. 

There was some minor Republican resistance to cuts. White House Budget Director Russ Vought announced that a popular and successful $400 million global HIV/AIDS initiative known as PEPFAR would be spared. He also wrangled the support of South Dakota’s Mike Rounds by offering $10 million in new money for tribal radio stations that would otherwise face closure under the NPR cuts. 

The legislation would eliminate funding for the Corporation for Public Broadcasting, which funds PBS and NPR, entities which have long been targeted by conservatives for alleged liberal bias. The immediate result will likely be the closure of small market stations and cuts to local programming, with cuts to national programming coming later if private donors don’t make up the shortfall. 

Maine Senator Susan Collins said she may still vote against the bill despite the sparing of the PEPFAR program. But there would need to be at least three more GOP defectors to block the bill from passing. 

And there may be more cuts inspired by Elon Musk’s Department of Government Efficiency to come from the White House. Republicans are under enormous pressure to enact them. Trump has vowed not to endorse any lawmaker who votes against the package. 

Given that, it’s unlikely that last-minute lobbying from Big Bird and Elmo will save public broadcasting. — Erik Wasson

Don’t Miss

Trump hailed more than $92 billion in investments in artificial intelligence and energy infrastructure during a visit to Pennsylvania, highlighting his efforts to bolster US competitiveness in AI.

White House AI adviser David Sacks defended the Trump administration’s decision to reverse course and allow Nvidia and Advanced Micro Devices to resume sales of some artificial intelligence chips to China.

Trump said he reached a deal with Indonesia that will put a 19% tariff on goods from Southeast Asia’s largest economy, while US exports to the country won’t be taxed. 

Underlying US inflation rose by less than expected for a fifth month in June even as the details signaled companies are beginning to more meaningfully pass some tariff-related costs to consumers.

Treasury Secretary Scott Bessent suggested that Federal Reserve Chair Jerome Powell should step down from the central bank’s board when his term as chair is up in May 2026.

Kevin Warsh, a top contender to replace Powell as Fed chair, has become an enthusiastic supporter of lower interest rates after having warned as recently as last year about impending inflation.

Trump asked Volodymyr Zelenskiy whether Ukraine could strike Moscow, which the White House says was merely a question but one that came hours after he voiced frustration at Russia’s refusal to accept a ceasefire.

Investigations into crypto-betting platform Polymarket that went full-throttle in the waning days of the Biden administration are now being shut down just as Trump’s White House seeks to give the industry a boost.

Mike Waltz, the former national security adviser who is now Trump’s nominee for UN ambassador, pledged to return the world body to its “first principles” and challenge China’s growing influence.

The Trump administration must disclose information about the Department of Government Efficiency to a watchdog group and make DOGE’s administrator available to testify, a US appeals court ruled.

Watch & Listen

Today on Bloomberg Television’s Balance of Power early edition at 1 p.m., hosts Joe Mathieu and Kailey Leinz interviewed Anna Ashton, a former China analyst with the Defense Department, about the race between the US and China to dominate in artificial intelligence.

On the program at 5 p.m., they talk with Senators Thom Tillis, a Republican, and Tina Smith, a Democrat, about crypto legislation and the spending cuts to public broadcasting and humanitarian aid sought by the Trump administration.

On the Big Take podcast, Bloomberg’s economic statecraft reporter Joe Deaux joins host David Gura to discuss Trump’s attempts to bring copper manufacturing back to the US, why 50% levies on the metal could affect everything from your car to the nation’s electrical grid and what the copper industry is doing to get ahead. Listen on iHeart, Apple Podcasts and Spotify.

Chart of the Day

Washingtonians are looking to flee the city. The District of Columbia ranked second among metro areas where residents are searching for homes in other markets, according to a survey conducted by Realtor.com. Though home prices have come down somewhat, they remain high and the job market is soft because of cuts to the federal workforce, spurring current residents to search for homes outside the area. Realtor.com found that 86.4% of home searches were by people eyeing a move out of the metro area. That was second only to San Jose, California, another area known for high housing costs. There, 93.7% of shoppers were looking at listings elsewhere, and more than one-third of that activity was aimed outside of California. — Alex Tanzi

What’s Next

The producer price index for June will be reported tomorrow.

Retail sales in June will be reported on Thursday.

June’s import price index also is set for release Thursday.

Housing starts and building permits for June are out on Friday.

The University of Michigan’s preliminary reading of consumer sentiment in July will be released Friday.

Sales of existing homes during June will be reported July 23.

New home sales in June will be reported July 24.

Durable goods orders for June will be released July 25.

Seen Elsewhere

  • Microsoft is using engineers based in China to help maintain the Defense Department's computer systems with only minimal supervision by personnel in the US, according to ProPublica.
  • With GPS signals increasingly subject to jamming or spoofing, the aerospace industry is looking to using the Earth's magnetic field as an alternative to determine an airplane's location in flight, the Wall Street Journal reports.
  • The wildfire that destroyed the historic Grand Canyon lodge had been allowed to burn for days by the National Park Service before it raged out of control over the weekend, according to the Associated Press.

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