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Trump's $1.776 billion fund collides with Iran-war bills coming due

Trump's Justice Department opened a $1.776 billion 'anti-weaponization' fund that drew bipartisan opposition and a Capitol Police lawsuit; a Congressional Research Service report tallied 42 US aircraft lost in the Iran war at $29 billion; Iran's Supreme Leader hardened the nuclear position in talks; Walmart cut Q2 sales-growth guidance to 4-5% from 7.3%; and Kevin Warsh was sworn in as Fed chair on the narrowest Senate margin in the institution's history.

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DOJ creates $1.776 billion 'anti-weaponization' fund for Trump allies; bipartisan backlash, Capitol Police lawsuit

Acting Attorney General Todd Blanche announced a $1.776 billion "anti-weaponization" compensation fund Monday as part of a settlement in President Trump's $10 billion lawsuit against the IRS over a leak of his tax returns, drawing immediate bipartisan opposition over its scope, its likely beneficiaries, and the absence of congressional authorisation. Capitol Police Officer Harry Dunn and Metropolitan Police Officer Daniel Hodges sued Wednesday to block the fund, calling it "the most brazen act of presidential corruption this century"; Senators Bill Cassidy (R-La.) and Dick Durbin (D-Ill.) demanded congressional review, and Rep. Brian Fitzpatrick (R-Pa.) said House Republicans will "try to kill" it. Money will flow from the Treasury Judgment Fund — the dollar figure marks the year of American independence — until December 1, 2028.

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Acting Attorney General Todd Blanche announced a $1.776 billion "anti-weaponization" compensation fund Monday as part of a settlement in President Trump's $10 billion lawsuit against the IRS over a leak of his tax returns, drawing immediate bipartisan opposition over its scope, its likely beneficiaries, and the absence of congressional authorisation. Capitol Police Officer Harry Dunn and Metropolitan Police Officer Daniel Hodges sued Wednesday to block the fund, calling it "the most brazen act of presidential corruption this century"; Senators Bill Cassidy (R-La.) and Dick Durbin (D-Ill.) demanded congressional review, and Rep. Brian Fitzpatrick (R-Pa.) said House Republicans will "try to kill" it. Money will flow from the Treasury Judgment Fund — the dollar figure marks the year of American independence — until December 1, 2028.

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Congressional report details 42 US aircraft lost or damaged in Iran war, costing $29 billion

At least 42 U.S. military aircraft have been lost or damaged since the U.S.-Israeli war with Iran began on Feb. 28, according to a May 13 Congressional Research Service report. The losses include fighter jets, helicopters and drones, with repair or replacement costs contributing to a total war cost of about $29 billion. A tenuous ceasefire has been in place since April, but a peace deal remains elusive.

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At least 42 U.S. military aircraft have been lost or damaged since the U.S.-Israeli war with Iran began on Feb. 28, according to a May 13 Congressional Research Service report. The losses include fighter jets, helicopters and drones, with repair or replacement costs contributing to a total war cost of about $29 billion. A tenuous ceasefire has been in place since April, but a peace deal remains elusive.

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Iran's Supreme Leader orders enriched-uranium stockpile to stay in country, contradicting a key US demand

Iran's Supreme Leader Ayatollah Mojtaba Khamenei has issued a directive that the country's near-weapons-grade enriched uranium must not leave Iran, two senior Iranian sources told Reuters, hardening Tehran's stance on a central US demand in continuing peace talks aimed at ending the US-Israeli war. Israeli officials say President Donald Trump assured Israel that Iran's stockpile would be sent abroad and that any peace deal must include such a clause; the White House and Iran's foreign ministry declined to comment. The two sides have narrowed some gaps, the sources said, but remain divided over the stockpile and over Tehran's demand for recognition of its right to enrichment.

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Iran's Supreme Leader Ayatollah Mojtaba Khamenei has issued a directive that the country's near-weapons-grade enriched uranium must not leave Iran, two senior Iranian sources told Reuters, hardening Tehran's stance on a central US demand in continuing peace talks aimed at ending the US-Israeli war. Israeli officials say President Donald Trump assured Israel that Iran's stockpile would be sent abroad and that any peace deal must include such a clause; the White House and Iran's foreign ministry declined to comment. The two sides have narrowed some gaps, the sources said, but remain divided over the stockpile and over Tehran's demand for recognition of its right to enrichment.

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Kevin Warsh sworn in as Fed chair amid independence concerns and political pressure

Kevin Warsh was sworn in as Federal Reserve chair by President Donald Trump on May 21, 2026, in an unusual White House ceremony that underscored doubts about the central bank's political independence. Warsh, a former Fed governor and Trump's nominee, faces pressure to cut interest rates even as inflation surged to 3.8% in April, driven by the Iran war and rising energy prices. His confirmation was the narrowest for a Fed chair, with 54 senators in favor and 45 against.

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Kevin Warsh was sworn in as Federal Reserve chair by President Donald Trump on May 21, 2026, in an unusual White House ceremony that underscored doubts about the central bank's political independence. Warsh, a former Fed governor and Trump's nominee, faces pressure to cut interest rates even as inflation surged to 3.8% in April, driven by the Iran war and rising energy prices. His confirmation was the narrowest for a Fed chair, with 54 senators in favor and 45 against.

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Walmart warns US consumer spending slowing as Iran war drives up gas prices

Walmart has warned that rising gasoline prices, driven by the Iran war and Middle East conflict, are causing US consumers to cut spending. The retailer expects Q2 sales growth to slow to 4-5% from 7.3% in Q1. CFO John David Rainey noted that higher tax refunds from the OBBBA tax cuts had offset some pressure but are now fading. Walmart also warned that continued closure of the Strait of Hormuz could force food price hikes due to fertilizer shortages. Shares fell 7% on the guidance.

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Walmart has warned that rising gasoline prices, driven by the Iran war and Middle East conflict, are causing US consumers to cut spending. The retailer expects Q2 sales growth to slow to 4-5% from 7.3% in Q1. CFO John David Rainey noted that higher tax refunds from the OBBBA tax cuts had offset some pressure but are now fading. Walmart also warned that continued closure of the Strait of Hormuz could force food price hikes due to fertilizer shortages. Shares fell 7% on the guidance.

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Iran expands claimed military control zone in Strait of Hormuz

Background: The US has enforced a naval blockade of Iranian ports since April 13, 2026, and Iran has established a toll authority for the Strait of Hormuz. In a new development, Iran has created a 'Persian Gulf Strait Authority' and published a map claiming military oversight over 22,000 sq km in the Strait of Hormuz, extending into Omani and UAE territorial waters. The UAE dismissed the claims as 'fragments of dreams'. The move follows a US blockade of Iranian ports and a reported IRGC strike on a tanker. The US has redirected 94 ships since April. Meanwhile, diplomatic efforts continue, with Pakistan's military chief visiting Tehran and Trump pausing planned military strikes pending negotiations.

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Background: The US has enforced a naval blockade of Iranian ports since April 13, 2026, and Iran has established a toll authority for the Strait of Hormuz. In a new development, Iran has created a 'Persian Gulf Strait Authority' and published a map claiming military oversight over 22,000 sq km in the Strait of Hormuz, extending into Omani and UAE territorial waters. The UAE dismissed the claims as 'fragments of dreams'. The move follows a US blockade of Iranian ports and a reported IRGC strike on a tanker. The US has redirected 94 ships since April. Meanwhile, diplomatic efforts continue, with Pakistan's military chief visiting Tehran and Trump pausing planned military strikes pending negotiations.

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Justice Department argues for broad presidential tariff powers under Section 301 in Supreme Court case

The U.S. Department of Justice urged the Supreme Court not to hear HMTX Industries v. U.S., arguing that Section 301 of the 1974 Trade Act grants the president broad discretion to modify tariffs without a new investigation, even when expanding from $50 billion to over $300 billion in Chinese imports. Critics warn this interpretation could create a permanent, open-ended trade war power, conflating China's original unfair trade practices with its retaliatory tariffs.

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The U.S. Department of Justice urged the Supreme Court not to hear HMTX Industries v. U.S., arguing that Section 301 of the 1974 Trade Act grants the president broad discretion to modify tariffs without a new investigation, even when expanding from $50 billion to over $300 billion in Chinese imports. Critics warn this interpretation could create a permanent, open-ended trade war power, conflating China's original unfair trade practices with its retaliatory tariffs.

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US intelligence: Iran rapidly rebuilding military industrial base, drone production

US intelligence believes Iran has quickly resumed drone production and is rebuilding its military industrial base faster than expected after US-Israeli strikes, according to a CNN report. The rapid recovery, aided by Russia and China, raises doubts about the long-term effectiveness of the strikes. Iran could restore drone strike capabilities within six months, posing a threat to regional allies. Notably, the resumption of drone production occurred during the six-week ceasefire with Washington that began in early April.

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US intelligence believes Iran has quickly resumed drone production and is rebuilding its military industrial base faster than expected after US-Israeli strikes, according to a CNN report. The rapid recovery, aided by Russia and China, raises doubts about the long-term effectiveness of the strikes. Iran could restore drone strike capabilities within six months, posing a threat to regional allies. Notably, the resumption of drone production occurred during the six-week ceasefire with Washington that began in early April.

Frequently Asked

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What is the $1.776 billion fund for?
The Justice Department opened a $1.776 billion compensation fund for victims of weaponization, with the amount chosen to evoke American independence and drawn from the Treasury's Judgment Fund without congressional approval.
Who filed lawsuits against the fund?
Capitol Police Officer Harry Dunn and Metropolitan Police Officer Daniel Hodges sued, calling it the most brazen act of presidential corruption this century and citing the Fourteenth Amendment's ban on paying insurrection debts.
How much are US aircraft losses from the Iran war?
A Congressional Research Service report cited by Air Force Chief Gen. Ken Wilsbach estimates 42 US military aircraft lost since the war began on 28 February, with replacement costs of $29 billion.
What is Iran's position on uranium enrichment?
Supreme Leader Ayatollah Mojtaba Khamenei directed that Iran's near-weapons-grade enriched uranium must not leave the country, contradicting a clause Trump reportedly committed to Israel for removal.
How did the Senate confirm Kevin Warsh as Fed chair?
President Trump swore in Kevin Warsh as Federal Reserve chair after a 54-45 Senate confirmation, the narrowest margin for a Fed chair in history, raising concerns about central bank independence.