The Latest: Supreme Court will allow mass layoffs at Education Department

The Supreme Court is allowing President Donald Trump to put his plan to dismantle the Education Department back on track and go through with laying off nearly 1,400 employees.

With the three liberal justices in dissent, the court on Monday paused an order from U.S. District Judge Myong Joun in Boston, who issued a preliminary injunction reversing the layoffs and calling into question the broader plan.

The high court action enables the administration to resume work on winding down the department, one of Trump’s biggest campaign promises.

Separately, Trump said Monday he would punish Russia with "biting" tariffs if there isn't a deal to end the war in Ukraine within 50 days. He made the announcement during an Oval Office meeting with NATO Secretary-General Mark Rutte. Trump also said NATO members will purchase "billions and billions" of dollars in U.S. weaponry including Patriot missiles and transfer the munitions to Ukraine under a new deal to support Kyiv in defending itself against Russia. And he said this should serve notice to Russian President Vladimir Putin that he is serious about ending the war.

Here’s the latest:

Trump’s tariff letters cause a stir among world leaders

Trump has taken an unconventional approach to trade negotiations by sending foreign leaders form letters threatening higher tariffs while offering a chance to negotiate.

On Thursday, he raised tariffs on Canadian imports to 35%, effective Aug. 1, and he announced 30% tariffs on goods from the European Union and Mexico on Saturday. Trump has also targeted Brazil with a 50% tariff, which could increase U.S. prices for coffee and orange juice.

Responses have varied, with Canada opting for diplomacy while Brazil threatens retaliation. Trump claims the letters signal his willingness to make deals despite the confusion they cause.

▶ Read more about Trump's tariff letters

Temporary protected status removed for some Afghans in the US

A little less than 12,000 Afghans living in the U.S. have been protected from deportation and got a work permit under a U.S. government program called Temporary Protective Status.

But as of Monday, that is going away.

Homeland Security said in May that it was ending the protective status in 60 days, saying that conditions in Afghanistan had improved.

The number of Afghans protected by TPS is relatively small compared to the overall number of Afghans — about 180,000 — who came to the U.S. since the Taliban retook control of the country in 2021.

But the suggestion that it's safe to return to Afghanistan has angered many advocates and volunteers.

▶ Read more about the changes impacting Afghans in the U.S.

US imposes a 17% duty on fresh Mexican tomatoes

The U.S. government says it’s placing a 17% duty on most fresh Mexican tomatoes after negotiations ended without an agreement to avert the tariff.

Proponents say the import tax announced Monday will help rebuild the shrinking U.S. tomato industry and ensure that produce eaten in the U.S. is also grown there.

Mexico currently supplies around 70% of U.S. tomato market, up from 30% two decades ago, according to the Florida Tomato Exchange.

Opponents, including U.S. companies that grow tomatoes in Mexico, say the tariff will make fresh tomatoes more expensive for U.S. buyers.

▶ Read more about the tomato tariff

What could happen to federal student loans as Trump strips down the Education Department

Trump and his education secretary, Linda McMahon, have acknowledged only Congress has authority to close the Education Department fully, but both have suggested its core functions could be parceled out to different federal agencies.

Among the most important decisions is where to put management of federal student loans, a $1.6 trillion portfolio affecting nearly 43 million borrowers.

Trump in March suggested the Small Business Administration would take on federal student loans, but a June court filing indicated the Treasury Department is expected to take over the work.

The Education Department said it had been negotiating a contract with Treasury but paused discussions when the court intervened. That work is now expected to proceed in coming days.

Trump spoke by phone with Ukraine’s president

President Volodymyr Zelenskyy of Ukraine had what he called a "very good conversation" by phone with Trump.

“Thank you for the willingness to support Ukraine and to continue working together to stop the killings,” Zelenskyy wrote.

He said Trump detailed Trump’s meeting Monday with Mark Rutte, NATO’s secretary general, and said it was important that “Alliance countries are working to increase defense spending.”

“We discussed the necessary means and solutions with the President to provide better protection for people from Russian attacks and to strengthen our positions,” Zelenskyy wrote, adding that he was “ready to work as productively as possible to achieve peace.”

Zelenskyy added that Trump had “agreed to catch up more often by phone and coordinate our steps in the future.”

House Democratic leader says Putin has been ‘punking’ Trump all year

Minority Leader Hakeem Jeffries says Trump campaigned on a promise to quickly end Russia’s war with Ukraine, but instead spent the first six months of his administration “playing footsie” with Putin while the Russian president unleashes a military assault on Ukraine.

“How’s that working out?” said Jeffries of New York during a press conference at the U.S. Capitol.

“Vladimir Putin has spent the entire year punking Donald Trump and the Trump administration,” he said.

The Democratic leader dismissed Trump’s new plan for an peace deal within 50 days, and said Congress should impose sanctions on Russia to pressure an end to the war.

Supreme Court allows Trump to lay off nearly 1,400 Education Department employees

The Supreme Court is allowing President Donald Trump to put his plan to dismantle the Education Department back on track and go through with laying off nearly 1,400 employees.

The layoffs “will likely cripple the department,” Joun wrote. A federal appeals court refused to put the order on hold while the administration appealed.

The high court action enables the administration to resume work on winding down the department, one of Trump’s biggest campaign promises.

▶ Read more about dismantling the Education Department

German military chief touts military investments in meeting with Hegseth

German's defense minister is visiting the Pentagon to meet with Defense Secretary Pete Hegseth as his country works to increase its defense spending and assist Ukraine in its fight against Russia.

Defense Minister Boris Pistorius met with his American counterpart Monday afternoon. Speaking to reporters Pistorius said Germany is working to take on greater responsibilities for European defense. He cited Germany's increased defense funding as well as the work it has done to oppose Russia's invasion of Ukraine.

“We are determined to assume greater responsibility for Europe’s deterrence and defense, while recognizing that the contribution of the United States of America remains indispensable to our collective security,” Pistorius said.

The meeting came on the same day that Trump announced a plan that would see European allies buy U.S. military equipment including Patriot air defense missiles to be transferred to Ukraine.

Hegseth cited that deal as well as the creation of a new German brigade in Lithuania as evidence of Germany's contribution to security.

“We’ve seen incredible progress inside NATO and with Germany taking the lead on that,” Hegseth said.

More than 20 states sue Trump administration over frozen after-school and summer program funding

More than 20 states have sued President Donald Trump’s administration over billions of dollars in frozen funding for after-school and summer programs and other programs.

Aiden Cazares is one of 1.4 million children and teenagers around the country who have been attending after-school and summer programming at a Boys & Girls Club, the YMCA or a public school for free thanks to federal taxpayers. Congress set aside money for the programs to provide academic support, enrichment and child care to mostly low-income families, but President Donald Trump's administration recently froze the funding.

The money for the 21st Century Community Learning Centers is among more than $6 billion in federal education grants Trump's Republican administration has withheld, saying it wants to ensure recipients' programs align with the president's priorities.

▶ Read more about frozen funding

Trump said he’s ended the ‘radical left war on faith’

He also touted a recent decision allowing religious leaders to endorse candidates without their organizations losing tax exempt status.

Addressing religious leaders at a White House event, Trump said “you have more power than anybody, but you’re not allowed to use your power.”

Russian commentators brush off Trump’s tariff threats

Russian commentators began to react to Trump’s announcement with NATO’s Mark Rutte late Monday Moscow time. There has not yet been an official statement from the Kremlin.

“Trump’s dream is for war to be a business — to sell weapons to the EU,” Pro-Kremlin military blogger Yuri Kotenok wrote in a post on Telegram.

Others made light of Trump’s threat of tariffs.

“Oh, how much can change both on the battlefield and with the mood of those leading the U.S. and NATO in 50 days,” said senior lawmaker Konstantin Kosachev.

Trump talks money at faith lunch

Trump’s remarks quickly turned from religion to the economy. He called Federal Reserve Chair Jerome Powell “a knucklehead, stupid guy” who is costing the country hundreds of billions of dollars.

He continued by touting the billions taken in by U.S. tariffs so far.

“I’ve always made money,” he said. “Now I’m making it for you people.”

Trump says political opponents ‘wanted to take God and religion out of your lives’

The president began his remarks at an event hosted by the White House Faith Office by expressing his support for religion in public life.

“A nation that prays is a nation that prospers,” he said.

Trump says economy doing fine despite Fed holding off on rate cuts

President Donald Trump appears to be blaming Federal Reserve Chair Jerome Powell for the high cost of housing in the U.S.

Trump on Monday repeated his attacks on Powell for not cutting the Fed’s benchmark interest rate, saying that the head of the U.S. central bank has been “terrible” and “doesn’t know what the hell he’s doing.” Powell has held off on further reductions to the rate controlled by the Fed given Trump’s tariffs, saying that Fed officials want to see how the import taxes influence inflation and economic growth.

Trump said the economy was doing well despite Powell’s refusal to reduce rates to Trump’s liking, but it would be “nice” if there rate cuts “because people would be able to buy housing a lot easier.”

The Fed’s concern is that rate cuts on the scale discussed by Trump could worsen inflation if, in fact, his tariffs result in higher prices across the U.S. economy. There is also the possibility that tariffs harm economic growth in ways that require rate cuts in order to limit job losses.

Trump says Biden ‘knew nothing about what he was signing’

Trump is repeating his assertions that his predecessor’s use of the autopen is a major scandal.

He was asked for his reaction to Biden’s comments to The New York Times that he approved a series of pardons at the end of his term, then directed the use of the autopen to make them official. Trump responded of his predecessor, ““I guarantee he knew nothing about what he was singing.”

Trump added that it was unfortunate that Biden got to use the Resolute Desk in the Oval Office just like he does.

And he noted that, while the use of the autopen is legal, it is “not supposed to be for signing major legislation” and things like presidential pardons.

Trump likens Gaza to a real estate deal

Trump derided the Gaza Strip as “one of the worst real estate deals ever made” and suggested that its formation involved giving up “oceanfront property.”

The president has for months suggested that Israel could seize control of Gaza amid its war with Hamas there, and then cede it to the U.S.

Trump has said repeatedly that U.S. authorities could then transform the area into a Riviera-like resort.

Trump said one of his administration’s chief foreign envoys, Steve Witkoff, would be working on Gaza and that there could be something “fairly soon to talk about” on that front.

German defense minister t

o meet Monday with US defense secretary on missiles

Trump and Rutte say Germany is going to supply Ukraine with a massive amount of weaponry, including Patriot missile defense systems, as part of the broader initiative by the U.S. and the alliance to shore up Ukrainian defenses.

German Defense Minister Boris Pistorius is due to meet later Monday with Pete Hegseth to discuss the Patriot transfers, which Trump and Rutte said could occur within days.

Trump urges Putin to make a deal with Ukraine

Trump repeated his frustration that Putin has resisted making a deal with Ukraine to end the war.

He said his conversations with the Russian president “are always very pleasant,” but “then missiles go off that night.”

Putin “knows what a fair deal is,” Trump said.

Trump changes his tune on Europe and defense spending

Trump seems increasingly sanguine about European nations playing a larger role in opposing Russia’s war with Ukraine and spending more to help increase military security on the continent.

Trump says he’s pleased with Europe spending more on defense — after many NATO members at a recent summit in The Hague agreed to increase spending to 5% of their GDP — and reiterated his complaints that the U.S. still spends heavily to defend Ukraine.

“The spirit they have is amazing,” Trump said. “Ultimately, having a very strong Europe is a good thing,” Trump said.

Trump says Russia sanctions bill could be necessary, or very useful

Trump says of a GOP-championed sanctions package against Russia, “I’m not sure we need it.”

The president noted shortly thereafter, however, that some top Republicans in the Senate were working hard on the matter. He added that he didn’t want them to “waste their time.”

“It could be very useful, we’ll have to see,” Trump said.

The president also talked about how the finished legislative sanctions package could eventually punish Russia with tariffs exceeding 100%. But he said he plans to impose 100% tariffs unilaterally soon if Russia’s war in Ukraine isn’t concluded.

Trump: NATO members will buy ‘billions and billions’ of dollars in US weaponry

Trump says the European governments will then transfer the munitions to Ukraine under a new deal to support Kyiv in defending itself against Russia.

Trump said in the Oval Office on Monday with Rutte that those transfers — combined with a threat to impose 100% tariffs on all Russian exports if a peace deal isn’t reached within 50 days — should serve as notice to Putin that he’s serious about ending the war.

Trump did not provide details but said the weapons would include Patriot missile defense batteries.

NATO Secretary-General: Weapons deal with US should cause Russia to consider peace with Ukraine

Mark Rutte said Europeans will buy weapons from the U.S. to equip Ukraine, and that the armaments and equipment should cause Russian President Vladimir Putin to “reconsider” peace negotiations.

Rutte said Ukraine would get “massive numbers of military equipment” such as missiles, air defense systems and ammunition.

“Speed is of the essence here,” said Rutte. He said Germany, Finland, Canada, Norway, Sweden, the United Kingdom and Denmark would be among the buyers to supply Ukraine.

Trump threatens Russia with tariffs if war on Ukraine isn’t resolved

The president promised “biting” tariffs if the war doesn’t end. He described them as secondary tariffs, meaning they would target Russia’s trading partners. If implemented, it would be an attempt to isolate Moscow in the global economy.

“We’re going to be doing very severe tariffs if we don’t have a deal in 50 days,” Trump said during a meeting with NATO’s secretary general.

The president suggested such levies could feature 100% tariffs. It wasn’t immediately clear what products could be targeted.

Trump: NATO members will buy ‘billions and billions’ of dollars in US weaponry

Trump says the European governments will then transfer the munitions to Ukraine under a new deal to support Kyiv in defending itself against Russia.

Trump did not provide details but said the weapons would include Patriot missile defense batteries.

Senate Democrats raise concerns that the US retreat benefits China

Trump’s cuts to international programs, tariffs on allies and partners, and unfriendly moves against international students have “deeply” undermined U.S. competitiveness in its rivalry against China, warned the Democrats on the Senate Foreign Relations Committee in a report released today.

The report calls for action by Congress to rebuild tools to restore the U.S. global reputation and influence so that U.S. won’t be unseated by China as the world’s leading power.

“America’s retreat from the world will have real and lasting consequences for the American people,” it says. “A retreat from the system that we helped build following the Second World War — based on democracy, economic interdependence and American values — means China is increasingly able to set the global agenda at the expense of U.S. interests.”

Bitcoin hits another all-time high as Congress begins ‘crypto week’

Data from CoinMarketCap showed Bitcoin climbed above $123,000 early Monday, up from about $108,000 only a week ago. The cryptocurrency is now the fifth most valuable asset class in the world at $2.4 trillion, with a higher market cap than Amazon.

The House is under pressure from Trump and the big-spending crypto lobby to quickly pass legislation including a bill passed last month by the Senate to regulate so-called stablecoins. The House is considering far more sweeping cryptocurrency market structure legislation.

Trump, once a skeptic, vowed to make the U.S. the global capital of crypto. He and his family have moved into mining operations, billion-dollar bitcoin purchases, a newly minted stablecoin and a Trump-branded meme coin.

Wall Street hangs near its record, betting Trump will back down on tariffs

The S&P 500 was edging down early Monday, still within 0.5% of its all-time high set on Thursday. The Dow Jones Industrial Average and Nasdaq composite were holding steady in their first trading after Trump said he plans 30% tariffs on goods from Mexico and the European Union starting Aug. 1, the same deadline he announced for Japan, South Korea and a dozen other countries.

The latest postponements allow time for more dealmaking to mitigate economic damage. Enacting all his import taxes on U.S. consumers would raise the risk of a recession and raise U.S. debt pressure as big tax cuts add to the deficit.

Ulrike Hoffmann-Burchardi, global head of equities at UBS Global Wealth Management, predicts the Trump administration “will ultimately de-escalate, especially if there is a new bout of heightened bond and stock market volatility.”

Trump the dealmaker: more ultimatum than compromise

As Trump slaps trading partners with tariffs rather than slog through prolonged negotiations, pressures the Federal Reserve to cut interest rates and launches a new investigation aimed at reshaping higher education, it's clear that threats are a permanent feature of his presidency.

He’s tightening his grip on independent institutions, with fewer checks on his power. Republicans in Congress fear primary challenges, and the Supreme Court is stocked with his appointees.

Trump’s allies believe his aggression is required in a political ecosystem where he’s under siege from Democrats, the court system and the media. Critics fear he’s eroding the country’s democratic foundations with an authoritarian style.

“Pluralism and a diversity of institutions operating with autonomy — companies, the judiciary, nonprofit institutions that are important elements of society — are much of what defines real democracy,” said Larry Summers, a former Treasury secretary and former president of Harvard University. “That is threatened by heavy handed, extortionist approaches.”

▶ Read more about Trump's moves to expand his power

Trump’s envoy to Ukraine and Russia meets with Volodymyr Zelenskyy

They met in Kyiv on Monday as anticipation grew over a possible shift in the Trump administration's policy on the three-year war.

Zelenskyy said he and retired Lt. Gen. Keith Kellogg had "a productive conversation" about strengthening Ukrainian air defenses, joint arms production, purchasing U.S. weapons in conjunction with European countries and the possibility of tighter sanctions on the Kremlin.

Trump has increasingly expressed frustration about Russian President Vladimir Putin's unbudging stance on U.S-led peace efforts. "I am very disappointed with President Putin, I thought he was somebody that meant what he said," Trump said late Sunday.

“We hope for the leadership of the United States, because it is clear that Moscow will not stop unless its ... ambitions are stopped by force,” Zelenskyy said on Telegram.

Summer and after-school programming for 1.4 million students at risk

These children attend after-school and summer programming at a Boys & Girls Club, YMCA or public school for free thanks to funding set Congress set aside for academic support, enrichment and child care to mostly low-income families. Many now face closure as the Trump administration withholds more than $6 billion in federal education grants to align with his priorities.

Ninety-one of the 100 school districts receiving the most money from four frozen grant programs are in Republican congressional districts, according to an analysis from New America, a left-leaning think tank.

“I deeply believe in fiscal responsibility, which means evaluating the use of funds and seeking out efficiencies, but also means being responsible — releasing funds already approved by Congress and signed by President Trump,” said Georgia schools superintendent Richard Woods, an elected Republican.

▶ Read more about the children's programs that face closure

How Republicans are getting around a filibuster

Spending bills almost always need some bipartisan buy-in to get 60 votes to avoid a filibuster in the 100-member Senate. This week's effort is different.

Congress set up a process under President Richard Nixon to speedily claw back previously approved spending authority with only a simple Senate majority. It's a rarely employed maneuver. Trump proposed 38 rescissions in 2018, but that package stalled.

“How Republicans answer this question on rescissions and other forthcoming issues will have grave implications for the Congress, the very role of the legislative branch, and, more importantly, our country,” Senate Democratic leader Chuck Schumer warned in a letter to colleagues.

Senate Majority Leader John Thune said he’s disappointed to see Schumer “implicitly threaten to shut down the government.”

The Trump administration is likening this as a test case and says more could come if Congress goes along.

White House says public media system is politically biased and unnecessary

Trump has asked lawmakers to rescind nearly $1.1 billion from the Corporation for Public Broadcasting — the full amount it's due to receive during the next two budget years.

The corporation distributes more than two-thirds of the money to more than 1,500 locally operated public television and radio stations. Much of the rest supports national programming through National Public Radio and the Public Broadcasting System.

The potential fallout has generated concerns among Republicans. Sen. Mike Rounds of South Dakota says these radio stations “are the only way of really communicating in the very rural areas of our state, and a lot of other states as well.”

In recent testimony, Office of Management and Budget Director Russ Vought criticized a "Sesame Street" town hall on CNN about combatting racism.

A Senate vote will test the popularity of DOGE spending cuts

Senate Republicans will test the popularity of Department of Government Efficiency spending cuts this week by aiming to pass Trump's request to claw back $9.4 billion in public media and foreign aid spending.

Senate Democrats are trying to kill the measure, but they need help from a few Republicans.

A rarely used tool allows the president to request the cancellation of previously approved funding authority, triggering a 45-day clock under which the funds are frozen. If Congress fails to act before that clock expires Friday, the spending stands.

The House has already approved Trump's request on a mostly party line 214-212 vote. The Senate has little time to spare. Another House vote will be needed if senators amend the legislation, adding more uncertainty.

▶ Read more about the congressional claw-back effort

Europe forges response to Trump’s surprise tariffs threat

European trade ministers are meeting in Brussels following Trump's surprise announcement of 30% tariffs on the European Union.

“We should prepare to be ready to use all the tools in the toolbox,” said Denmark’s foreign minister, Lars Løkke Rasmussen, told reporters ahead of the meeting. “So we want a deal, but there’s an old saying: ’If you want peace, you have to prepare for war.’”

If Trump makes good on his tariff threats against dozens of countries, it could have ramifications for nearly every aspect of the global economy.

▶ Read more about the European Union on Trump tariffs talks

The European Union is suspending Monday's retaliatory tariffs

″This is now the time for negotiations,’′ European Commission President Ursula von der Leyen told reporters in Brussels on Sunday after Trump sent a letter announcing new 30% tariffs on all EU goods starting Aug. 1.

The America’s biggest trading partner and the world’s largest trading bloc had been scheduled to impose ″countermeasures’’ starting Monday at midnight.

″We have always been clear that we prefer a negotiated solution,’′ she said. If they can’t reach a deal, she said that ″we will continue to prepare countermeasures so we are fully prepared.’′