NATIONAL NEWS

The Latest: Trump keeps immunity from tax probes while scrapping $1.8 billion compensation fund

Jun 3, 2026, 5:39 AM

A giant portrait of President Donald Trump looks down from the Justice Department in Washington, Tu...

A giant portrait of President Donald Trump looks down from the Justice Department in Washington, Tuesday, June 2, 2026. The Justice Department said it would comply with a court order pausing the implementation of a $1.776 billion settlement fund designed to compensate President Donald Trump's political allies after GOP senators revolted. (AP Photo/J. Scott Applewhite)
Credit: AP Photo/J. Scott Applewhite

(AP Photo/J. Scott Applewhite)

The Trump administration is scrapping plans for a $1.8 billion fund to compensate the Republican president’s allies, Acting Attorney General Todd Blanche said after a fierce political backlash threatened to stall key elements of the White House agenda. But Blanche said they’re sticking with a deal to permanently drop tax claims against President Donald Trump, an extraordinary flex of executive power that could help shield the president from further examination of his finances and legal conduct.

Most of the GOP primary challengers Trump has endorsed as he culls his party of politicians deemed insufficiently loyal have been successful, knocking off incumbents in Indiana, Louisiana, Kentucky and Texas, but in a setback Tuesday night, he couldn’t lift Rep. Randy Feenstra to victory in Iowa’s Republican primary for governor, setting up what Democrats see as one of their best opportunities to pick up a governorship this year. See other AP coverage of Tuesday’s primary results here.

The Latest:

Trump’s Education Department is backing away from addressing civil rights for Black students

For generations, the federal government enforced civil rights laws with an eye toward remedying historic, systemic discrimination against Black people and other people of color. The Justice Department pressed schools to desegregate. The Education Department worked to promote equal opportunity and held schools accountable for racial bias.

But under the Trump administration, efforts to address deep-rooted inequities for students of color are being cast as discriminatory against white students. Programs that have long withstood legal scrutiny are now quick to be deemed “ illegal DEI ” — diversity, equity and inclusion — by the White House. Schools that do not comply have faced threats to their funding, and in some cases, lost federal grants.

Civil rights attorneys describe the administration’s actions as a complete inversion of legal history.

The U.S. government has opened investigations or joined litigation over a wide range of efforts to address racial inequality. The Justice Department is investigating programs to increase the number of teachers of color in Rhode Island and Iowa. And grants to districts to train teachers or recruit school mental health workers have been discontinued for mentions of diversity in recruitment.

▶ Read more

Trump signs an executive order that invites vetting of top AI models for national security risks

Trump signed an executive order on oversight of artificial intelligence Tuesday, less than two weeks after postponing a White House ceremony over his concerns that a similar policy could dull America’s technological edge.

The order establishes a framework for the federal government to vet the national security risks of the most advanced AI systems for up to a month before their public release. Participation by AI developers would be voluntary, the order says.

“Advanced AI capabilities make our Nation stronger, but also introduce new national security considerations that require coordinated action across executive departments and agencies,” the order says.

It was not immediately clear to what extent the order differed from the one Trump declined to sign on May 21.

The order says the government would have only 30 days to review an AI system, a shorter time frame than some in the industry were expecting. A longer time period might have been seen as too burdensome for a fast-moving and highly competitive industry.

▶ Read more

US says it plans extra tariffs of 10% or more for most trading partners after forced labor probe

The Trump administration is proposing that tariffs of 10% or more be imposed on products from dozens of major trading partners following a probe into imports of goods allegedly made with forced labor.

The report released early Wednesday by the U.S. Trade Representative said Canada, Mexico, Taiwan and the United Kingdom and some other countries and territories would face 10% additional tariffs for allegedly failing to enforce a forced labor import ban.

A 12.5% additional tariff would be imposed on China, Japan, India, South Korea, Brazil and Switzerland and dozens of other countries.

“The failure of our most important trading partners to address the importation of goods made with forced labor is unacceptable. This creates a dynamic where American workers are forced to compete globally on an unlevel playing field,” USTR Ambassador Jamieson Greer said in a statement.

He added that “each of our trading partners must do more to ensure that trade does not perversely encourage and entrench forced labor globally.”

The USTR said failure to prevent such imports is “unreasonable and burdens or restricts U.S. commerce.”

▶ Read more

Trump administration is scrapping $1.8B fund meant to compensate president’s allies, Blanche says

The Trump administration is scrapping plans for a $1.8 billion fund that would have compensated allies of the Republican president, the Justice Department’s top official said Tuesday in retreating from a program that faced a fierce political backlash that had threatened to stall key elements of the White House agenda.

“We are not moving forward with the fund, period,” Acting Attorney General Todd Blanche said in response to questions at a House hearing on the Justice Department budget.

“Not moving forward ever?” asked Rep. Grace Meng, a New York Democrat.

“Correct,” Blanche answered.

The blunt declaration marked an extraordinary and rare Trump administration turnabout in the face of mounting political opposition to a fund that officials said was meant to compensate people who believe they have been improperly targeted by the criminal justice system. Since the establishment of the fund two weeks ago, it’s been paused by a judge and lambasted by Democrats and Republicans alike, who said they were troubled by a lack of oversight and the potential for payouts to participants in the violent Jan. 6, 2021, riot at the U.S. Capitol.

▶ Read more

National News

Palestinian President Mahmoud Abbas attends the inauguration ceremony of the Innovation and Excelle...

Associated Press

Trump administration again denies visas for Palestinian delegation to attend the UN General Assembly

WASHINGTON (AP) — The Trump administration has denied visas for a high-level Palestinian delegation to attend an annual meeting of world leaders at the United Nations for the second year in a row. The State Department said Wednesday that Palestinian officials, including Palestinian Authority President Mahmoud Abbas, had failed to live up to their commitments […]

7 minutes ago

Associated Press

Florida woman pleads guilty to defrauding fund for Jeffrey Epstein victims

NEW YORK (AP) — A Florida woman who was paid $750,000 by a fund for people sexually abused by Jeffrey Epstein has pleaded guilty to falsifying records she used in her application for the money. Jennifer Percival, a scholar who has written books on autism, entered the plea in federal court in New York on […]

2 hours ago

Meta data centers operate, Saturday, Sept. 5, 2026, near Social Circle, Ga. (AP Photo/Mike Stewart)...

Associated Press

House passes bill aimed at addressing impact of data centers on energy costs

WASHINGTON (AP) — The House overwhelmingly approved a bill Wednesday that aims to have artificial intelligence data centers pay for their substantial energy needs as lawmakers used what was expected to be their final day in Washington before the midterm elections to address a growing voter concern. The legislation would require state utility regulators to […]

2 hours ago

Associated Press

Trump suggests EU allowing Canada as associate member could be a ‘hostile act’

CHARLOTTE, North Carolina (AP) — President Donald Trump suggested that the European Union allowing Canada to become an associate member could be a “hostile act” and threatened to respond to the proposed move by imposing more tariffs on the bloc. Trump conditioned his threat Wednesday on the “intention” of European leaders, saying that, “If it’s […]

3 hours ago

FILE - Artist Peter Max poses for a photo during his retrospective with the Road Show Company exhib...

Associated Press

The psychedelic pop artist Peter Max has died at 88, his son says

NEW YORK (AP) — Peter Max, whose colorful, psychedelic pop art expressed the optimism of the “flower power” movement of the 1960s and graced everything from postage stamps to a cruise ship, has died at 88, his son said in a written statement Wednesday. Max died on Monday, the statement said. No cause was given. […]

3 hours ago

Kansas City Chiefs tight end Travis Kelce runs the ball after making a catch against the Denver Bro...

Associated Press

Investment firm leader gets 11 years for Ponzi scheme that bilked dozens, including Travis Kelce

ST. LOUIS (AP) — The creator of a Texas-based investment company has been sentenced to 11 years in federal prison for his role in a Ponzi scheme that prosecutors say bilked 64 victims, including Kansas City Chiefs tight end Travis Kelce. U.S. District Judge Zachary Bluestone sentenced Siddharth Jawahar, 38, on Tuesday and ordered him […]

3 hours ago

The Latest: Trump keeps immunity from tax probes while scrapping $1.8 billion compensation fund