The federal government shutdown has entered its 37th day, as negotiations continue on a resolution that could include short-term funding and appropriations bills. Concurrently, the Supreme Court has heard arguments on presidential authority regarding tariffs and the removal of independent agency members, while legal challenges to federal immigration enforcement persist in Chicago and Minnesota. Economic discussions include the impending expiration of Affordable Care Act subsidies, recent tax law changes, and the President's economic approval rating.
U.S. Government Operations and Economic Policies
Government Shutdown
The federal government shutdown has reached its 37th day. President Trump has advocated for Republican senators to end the shutdown by eliminating the Senate filibuster. Earlier indications from some Democratic lawmakers suggested a willingness to seek a resolution, though many have since adopted a firm stance following recent election results. The President acknowledged that the shutdown negatively impacted Republican performance in recent elections.
While most Republican members of Congress do not support eliminating the filibuster, bipartisan discussions have reportedly gained traction. Potential solutions under consideration by Senate Democrats and Republicans include a short-term funding measure, possibly extending until December or later, alongside votes on a package of regular appropriations bills.
Reopening the government would necessitate the support of eight Democratic senators for a deal to pass.
Expiring health care subsidies continue to be a point of contention in these negotiations.
Affordable Care Act (ACA) Subsidies
Congress is anticipated to conclude its scheduled holiday recess without extending enhanced Affordable Care Act (ACA) health insurance subsidies. These subsidies for ACA marketplace plans are set to expire by the end of the year, potentially leading to increased premiums for millions of Americans, with some facing double or triple price increases in the new year.
Bipartisan discussions on subsidy extensions are ongoing among congressmembers, though lawmakers have indicated a resolution is unlikely before the end of the year. The House of Representatives is expected to vote on a package of conservative health reform policies, including provisions for association health plans and revisions to pharmacy benefit manager regulations.
Tax Law Changes
Approaching tax season highlights provisions within recently enacted tax legislation primarily structured to benefit high-net-worth individuals and high-income earners. While middle-income households may experience some relief, the predominant share of benefits is directed toward those with substantial earnings, investment income, or large estates. Key provisions favoring upper-income individuals and families include:
- A permanent lifetime exemption for estate and gift taxes, effective next year, set at $15 million per individual and $30 million per married couple, an increase from previous limits.
- An increased exclusion for capital gains from sold qualified small business stock, issued after July 4, 2025, from $10 million to $15 million for companies with assets up to $75 million.
- Extended bonus depreciation, allowing businesses to immediately deduct 100% of the cost of qualifying assets, such as machinery and vehicles.
Economic Policies and Approval
President Trump is scheduled to discuss his administration's approach to affordability in Mount Pocono, Pennsylvania. He previously stated at the White House that "Democrats caused the affordability problem" and that his administration is addressing it. Public opinion surveys indicate voters attribute high prices to the president's policies.
A senior White House official indicated plans for the president to increase domestic travel to present his policies, balancing discussions of economic outcomes attributed to the administration with an acknowledgment of ongoing work. It is currently unknown if new policies will accompany this messaging. The administration previously announced a $12 billion aid package for farmers affected by tariffs, described as temporary support until new trade agreements are finalized.
According to a recent NPR/PBS Marist poll, 36% of Americans approved of then-President Trump's handling of the economy, representing his lowest approval score on this issue in six years of the poll's conduct.
Democrats currently hold a 37% to 33% lead over Republicans regarding economic trust, a change from the 16-point advantage the Republican Party held in 2022.
Indiana Redistricting
Indiana state senators are scheduled to convene a special session this week to vote on proposed new political maps. These maps have the potential to enable Republicans to secure all nine of Indiana's congressional seats. The state's congressional delegation currently consists of seven Republicans and two Democrats. Reports indicate that some Republican leaders have received feedback from constituents expressing opposition to the proposed map, with concerns raised about the fragmentation of predominantly Black communities.
Judicial Developments
Supreme Court Considers Presidential Tariff Authority
The Supreme Court has heard arguments regarding the legality of tariffs imposed by President Trump under the 1977 International Emergency Economic Powers Act. The central legal inquiry of the case is whether this law grants the President the authority to impose tariffs on products globally.
Justices' questions during oral arguments indicated skepticism regarding the President's interpretation of the law. The potential impact of a ruling against the President on current tariffs is subject to clarification; such a ruling could deem certain tariffs illegal, while others might remain in effect.
President Trump has characterized this case as the "most important Supreme Court case ever." A ruling adverse to the President would mark the first instance of the Supreme Court constraining the scope of his executive powers.
Supreme Court Hears Arguments on Presidential Authority Over Independent Agencies
The Supreme Court heard arguments concerning the extent of the president's authority to remove members of independent agencies, including bodies such as the Federal Reserve and Federal Trade Commission. Current statutes limit the president's power to dismiss these members to specific grounds, such as malfeasance or neglect of duty. Conservative justices expressed concerns regarding the clarity of the separation of powers.
Arguments from both parties acknowledged that independent agencies operate with functions beyond the executive branch, as their members and commissioners are involved in rulemaking and adjudication. Solicitor General D. John Sauer, representing the Trump administration, argued that a perceived lack of accountability to the president poses an issue.
Justice Sonia Sotomayor stated that the administration's proposed changes could disrupt governmental structure and undermine the legislative principle of certain agencies' independence.
Supreme Court Hears Transgender Athlete Cases
The Supreme Court is scheduled to hear arguments in two cases challenging laws that prohibit transgender girls and women from competing in women's sports at publicly funded educational institutions. Currently, 27 states have enacted such bans. Proponents of these bans assert that the laws are necessary to ensure fair competition. Opponents argue that such laws constitute sex-based discrimination, which violates federal statutes and the Constitution's equal protection guarantee.
Immigration Enforcement Litigation and Operations
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Chicago: The Trump administration is facing legal challenges in Chicago from city residents contesting federal immigration enforcement activities. Judge Sara Ellis has received testimony from citizens detailing their interactions with federal agents. Judge Robert Gettleman presided over a hearing concerning conditions within an immigration holding facility in a Chicago suburb. Judge Ellis is expected to issue a ruling today on a preliminary injunction that would extend a previous order limiting the use of force by federal agents against protesters. Testimony included an account from a woman who reported being confronted with a weapon while filming an arrest, and video testimony from U.S. Border Patrol Commander Greg Bovino, who stated that the use of force has been "more than exemplary."
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Minnesota: Minnesota officials have filed a lawsuit against the Trump administration to halt immigration enforcement operations within the state, following the shooting death of 37-year-old Renee Macklin Good by an Immigration and Customs Enforcement (ICE) agent. State officials allege that federal agents have arrested bystanders, detained U.S. citizens, and used irritants against protesters. The lawsuit also claims racial profiling, which the administration denies. One permanent U.S. resident reported being questioned by agents despite possessing legal documentation. Tom Homan replaced Greg Bovino as Border Czar for immigration operations in Minnesota, with Bovino returning to his previous position in California. President Trump engaged in discussions with Minnesota Governor Tim Walz and Minneapolis Mayor Jacob Frey regarding the ongoing enforcement efforts.
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Charlotte: In Charlotte, North Carolina, a woman left her 10-foot pine Christmas tree partially decorated in her front yard after immigration agents questioned men assisting her, stating this act symbolizes the perceived human and economic costs associated with the Trump administration's immigration enforcement actions.
Other Key Developments
Nuclear Reactor Pilot Program
The Trump administration introduced a program to accelerate the construction of new nuclear reactor designs, aiming for three new nuclear test reactors to be operational by July 4, 2026. This Reactor Pilot Program, managed by the Department of Energy (DOE), is fast-tracking 11 new reactor designs from nuclear startup companies. Unlike the U.S. Nuclear Regulatory Commission (NRC), known for its stringent regulatory framework, some companies perceive the Energy Department as a more accessible regulator. Critics of the pilot program contend that the DOE is an inappropriate regulator for such projects and that the program compromises safety standards in favor of expedited development.
Misty Copeland Concludes Ballet Career
Misty Copeland, recognized as the first Black woman to achieve principal dancer status at American Ballet Theatre (ABT), performed her final show last month. This performance marked her return to the stage after a hiatus exceeding five years, following a year of physical preparation for her farewell with ABT. Copeland articulated that the performance served as an expression of gratitude to the communities that supported her career. Following her final dance, Copeland received a 15-minute standing ovation. An interview explored her farewell performance and future plans.
Social Media Addiction Trial Commences
A jury will commence hearing arguments in a trial involving social media platforms YouTube, Meta, and TikTok. The case alleges that these platforms are intentionally designed to create addiction in young users, contributing to a youth mental health crisis. Jurors will be presented with internal company documents, including research pertaining to children. Plaintiffs assert that features such as autoplay videos make the applications difficult for children to disengage from, leading to issues including depression and eating disorders. The defendant companies dispute these claims, stating there is no clinical diagnosis for social media addiction.
Additional News Briefs
- White House ASL Interpretation: A federal judge has mandated that the White House immediately provide American Sign Language interpretation for press briefings conducted by the press secretary or the president.
- Jacaranda Tree Bloom: In October, Johannesburg, South Africa, is experiencing a bloom of violet Jacaranda trees.
- Economic Research Papers: Five recent economic research papers covering topics from "brain rot" to factors influencing female politicians' electoral performance were highlighted.
- "Hanukkah Lights" Broadcast: An annual program featuring stories about family, faith, friendship, and community is being presented.
- Crash Test Dummies: An updated design for a female crash test dummy, manufactured by Humanetics, is moving closer to widespread adoption this year.
- U.S. Capitol Statue: A statue of Barbara Rose Johns, who organized a student walkout that contributed to the desegregation of schools, has replaced Robert E. Lee's in the U.S. Capitol.
- World Cup Tickets: FIFA announced the sale of $60 "supporter entry tier tickets" for each of the 104 games in the 2026 World Cup, following public feedback regarding pricing.
- Grok Chatbot Controversy: X's Grok chatbot has faced blocking in two countries and is under investigation in several others for reportedly generating sexualized images of women and children.
- Credit Card Interest Rates: Former President Trump has proposed implementing a one-year cap on credit card interest rates at 10%.
- Nurses' Strike: Approximately 15,000 nurses initiated a strike at hospitals across Manhattan and the Bronx following unresolved contract negotiations.
- Microbiology Research: A team of microbiologists has launched a nonprofit to research microbes found in homes to harness their chemical reactions for global challenges.
- Cambodian Laundry Photography: A new photography series documents the routine of laundry in Cambodia's rural economy, highlighting the community's connection to the chore.
- Music Release: Singer-songwriter Lucinda Williams has released a new album titled "World's Gone Wrong."
- Haircut Advice: Recommendations were provided on how to prevent and address unsatisfactory haircuts, including considering reasons for change, selecting a suitable stylist, and providing visual references.