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Trump’s grip on party he remade weakens after string of setbacks

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President Donald Trump’s power to bend a compliant Republican Congress to his will has stalled amid a series of political setbacks that threaten to fracture the party heading into next year’s pivotal midterm elections.

In the last week, Trump capitulated to fellow Republicans’ demands for the release of the files of sex trafficker Jeffrey Epstein; saw his $2,000 stimulus check proposal receive a chilly reception on Capitol Hill; and prompted an intra-party debate over midterm campaign priorities with his broader effort to reclaim the affordability mantle.

And late Friday, he lost one of his once-most stalwart allies, Georgia Representative Marjorie Taylor Greene. An instigator of the push to release the Epstein files, Greene announced she would resign from Congress in January as the president and the congresswoman sparred online. That will at least temporarily shrink the Republicans’ already-tiny majority.

The Republican Party is increasingly at war with itself, which doesn’t bode well for its effort to prevent another election-day wipeout like it experienced earlier this month in off-year elections in New Jersey, Virginia, Georgia and California.

Victory With a Cost

Republicans ostensibly won the government shutdown fight, but they did so by blocking an extension of broadly popular tax credits under the Affordable Care Act. Millions of Americans now face spiking health care premiums, and the president’s party is splintered over how to respond. 

Republican Representative Thomas Massie, who has frequently sparred with Trump over Epstein and other matters, this week shrugged off the president’s efforts to unseat him in his safely Republican Kentucky district. 

“I’m winning. He’s losing,” Massie said.

Even the party’s typically mild-mannered congressional leaders — House Speaker Mike Johnson and Senate Majority Leader John Thune — are at odds, with Thune more willing to buck Trump.

Thune first refused to obey Trump’s repeated demands to end the shutdown by changing Senate rules. The two congressional leaders then sparred over the handling of the Epstein legislation. That quickly morphed into another battle over a provision tucked into legislation that stands to enrich a group of GOP senators. Now, they’re playing pass the buck on Russia sanctions legislation. 

A diminished Trump and a splintered party hurt prospects for furthering the president’s legislative agenda around a core issue in the upcoming elections: the state of the US economy. 

Trump has returned from the brink of defeat before, most famously when he left Washington in disgrace in 2021 following his election loss and the Jan. 6 Capitol riot, only to return victorious in 2024.

Trump has repeatedly signaled his own worries about the party’s messaging ahead of the 2026 elections, where Democrats aim to retake at least the House. That would give the party shared control of the nation’s purse strings as well as subpoena power and a reliable check on Trump. 

“Affordable should be our word, not theirs,” Trump said on Monday, referring to the Democratic victories in November where they won by focusing on family-budget issues. 

‘Affordability’ Messaging

Only 15% of voters in a Fox News poll said Trump’s policies were helping the economy, and 76% viewed the economy negatively, with Trump’s approval rating slumping to 41% — a low for the year in that poll.

Vice President JD Vance appealed to voters for patience and predicted an economic boom is coming. “As much progress as we’ve made, it’s going to take a little time for Americans to feel that,” he said at a Breitbart News event on Thursday. 

Trump even backed off some tariffs, notably on agricultural products like bananas and coffee from Brazil, a tacit acknowledgment that his favorite policy tool also can raise consumer costs.

Johnson, whose own fortunes are tied to Trump’s, has increasingly struggled to maintain control of his narrow majority. Both he and Trump were run over this week on the Epstein legislation, flip-flopping in the face of certain defeat after fighting the bill for months. 

Thune also refused Johnson’s pleas to amend the bill to allow the Justice Department to redact information in the files. The Senate agreed to pass the bill by unanimous consent even before receiving it — a sign of just how toxic the Epstein matter has become. 

Johnson also said he’s “very angry” that Thune had inserted a provision into the bill ending the shutdown that could net a group of Republican senators millions from taxpayers in lawsuits over the seizure of their phone records during the Biden administration. 

The provision is already being used by Democrats to attack vulnerable Republicans running for reelection, like Senator Susan Collins of Maine.

Meanwhile, the party’s legislative agenda has largely stalled since July, thanks in part to the shutdown. But that seven-week break masked deep splits among Republicans that are now surfacing.

They do not yet have a consensus on how to deal with spending bills needed to avoid another shutdown at the end of January. They are just now trying to cobble together a Republican health-care plan to replace the Affordable Care Act — something that has eluded the GOP for 15 years. Trump said Friday he wants that done by Jan. 30. 

Many of the most endangered Republicans want to extend the existing ACA subsidies for at least another year lest they be blamed for soaring premiums for tens of millions of Americans, but Trump has vowed to oppose any such measure.

Trump’s faltering clout could be seen when he started touting $2,000 checks to send to Americans, which he claimed would be paid for by tariff revenue. Already, enough Senate Republicans have told Bloomberg they oppose it to kill the measure. 

“I think it would be crazy to send money to people while we have a deficit,” Kentucky Republican Senator Rand Paul said this week. 

Redistricting Backfires

Trump’s push to have Republican states gerrymander their congressional districts to lock in a Republican House majority has backfired, as well, with Democrats potentially set to net seats out of the map-drawing war he started. Indiana Republicans ignored Trump’s public threats and declined to redraw their maps; the Texas GOP’s partisan map is at risk in federal court and Trump’s moves have spurred Democratic states like California to redraw their maps. 

Trump himself has also started to lash out, telling reporters he had yelled himself hoarse to staffers about trade issues. He quipped he would fire Treasury Secretary Scott Bessent if the Federal Reserve didn’t cut interest rates faster. 

He snapped at reporters for questioning his position on the Epstein files, for asking about his family’s business relationships with Saudi Arabia and about the killing of Washington Post columnist Jamal Khashoggi as he met with Saudi Crown Prince Mohammed bin Salman in the Oval Office.

Trump also called for the arrest and potentially the death penalty for a group of Democratic lawmakers who urged the military and intelligence community not to follow illegal orders. That earned him a mild rebuke from Republicans like Thune, who avoided the issue before finally saying he disagreed with Trump’s comments.



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SpaceX to offer insider shares at record-setting $800 billion valuation

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SpaceX is preparing to sell insider shares in a transaction that would value Elon Musk’s rocket and satellite maker at as much as $800 billion, people familiar with the matter said, reclaiming the title of the world’s most valuable private company. 

The details, discussed by SpaceX’s board of directors on Thursday at its Starbase hub in Texas, could change based on interest from insider sellers and buyers or other factors, said some of the people, who asked not to be identified as the information isn’t public. SpaceX is also exploring a possible initial public offering as soon as late next year, one of the people said. 

Another person briefed on the matter said that the price under discussion for the sale of some employees and investors’ shares is higher than $400 apiece, which would value SpaceX at between $750 billion and $800 billion. The company wouldn’t raise any funds though this planned sale, though a successful offering at such levels would catapult it past the record of $500 billion valuation achieved by OpenAI in October.

Elon Musk on Saturday denied that SpaceX is raising money at a $800 billion valuation without addressing Bloomberg’s reporting on the planned offering of insiders’ shares. 

“SpaceX has been cash flow positive for many years and does periodic stock buybacks twice a year to provide liquidity for employees and investors,” Musk said in a post on his social media platform X. 

The share sale price under discussion would be a substantial increase from the $212 a share set in July, when the company raised money and sold shares at a valuation of $400 billion. The Wall Street Journal and Financial Times earlier reported the $800 billion valuation target.

News of SpaceX’s valuation sent shares of EchoStar Corp., a satellite TV and wireless company, up as much as 18%. Last month, EchoStar had agreed to sell spectrum licenses to SpaceX for $2.6 billion, adding to an earlier agreement to sell about $17 billion in wireless spectrum to Musk’s company.

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The world’s most prolific rocket launcher, SpaceX dominates the space industry with its Falcon 9 rocket that lifts satellites and people to orbit.

SpaceX is also the industry leader in providing internet services from low-Earth orbit through Starlink, a system of more than 9,000 satellites that is far ahead of competitors including Amazon.com Inc.’s Amazon Leo.

Elite Group

SpaceX is among an elite group of companies that have the ability to raise funds at $100 billion-plus valuations while delaying or denying they have any plan to go public. 

An IPO of the company at an $800 billion value would vault SpaceX into another rarefied group — the 20 largest public companies, a few notches below Musk’s Tesla Inc. 

If SpaceX sold 5% of the company at that valuation, it would have to sell $40 billion of stock — making it the biggest IPO of all time, well above Saudi Aramco’s $29 billion listing in 2019. The firm sold just 1.5% of the company in that offering, a much smaller slice than the majority of publicly traded firms make available.

A listing would also subject SpaceX to the volatility of being a public company, versus private firms whose valuations are closely guarded secrets. Space and defense company IPOs have had a mixed reception in 2025. Karman Holdings Inc.’s stock has nearly tripled since its debut, while Firefly Aerospace Inc. and Voyager Technologies Inc. have plunged by double-digit percentages since their debuts.

SpaceX executives have repeatedly floated the idea of spinning off SpaceX’s Starlink business into a separate, publicly traded company — a concept President Gwynne Shotwell first suggested in 2020. 

However, Musk cast doubt on the prospect publicly over the years and Chief Financial Officer Bret Johnsen said in 2024 that a Starlink IPO would be something that would take place more likely “in the years to come.”

The Information, citing people familiar with the discussions, separately reported on Friday that SpaceX has told investors and financial institution representatives that it’s aiming for an IPO of the entire company in the second half of next year.

Read More: How to Buy SpaceX: A Guide for the Eager, Pre-IPO

A so-called tender or secondary offering, through which employees and some early shareholders can sell shares, provides investors in closely held companies such as SpaceX a way to generate liquidity.

SpaceX is working to develop its new Starship vehicle, advertised as the most powerful rocket ever developed to loft huge numbers of Starlink satellites as well as carry cargo and people to moon and, eventually, Mars.



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National Park Service drops free admission on MLK Day and Juneteenth while adding Trump’s birthday

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The National Park Service will offer free admission to U.S. residents on President Donald Trump’s birthday next year — which also happens to be Flag Day — but is eliminating the benefit for Martin Luther King Jr. Day and Juneteenth.

The new list of free admission days for Americans is the latest example of the Trump administration downplaying America’s civil rights history while also promoting the president’s image, name and legacy.

Last year, the list of free days included Martin Luther King Jr Day and Juneteenth — which is June 19 — but not June 14, Trump’s birthday.

The new free-admission policy takes effect Jan. 1 and was one of several changes announced by the Park Service late last month, including higher admission fees for international visitors.

The other days of free park admission in 2026 are Presidents Day, Memorial Day, Independence Day, Constitution Day, Veterans Day, President Theodore Roosevelt’s birthday (Oct. 27) and the anniversary of the creation of the Park Service (Aug. 25).

Eliminating Martin Luther King Jr. Day and Juneteenth, which commemorates the day in 1865 when the last enslaved Americans were emancipated, removes two of the nation’s most prominent civil rights holidays.

Some civil rights leaders voiced opposition to the change after news about it began spreading over the weekend.

“The raw & rank racism here stinks to high heaven,” Harvard Kennedy School professor Cornell William Brooks, a former president of the NAACP, wrote on social media about the new policy.

Kristen Brengel, a spokesperson for the National Parks Conservation Association, said that while presidential administrations have tweaked the free days in the past, the elimination of Martin Luther King Jr. Day is particularly concerning. For one, the day has become a popular day of service for community groups that use the free day to perform volunteer projects at parks.

That will now be much more expensive, said Brengel, whose organization is a nonprofit that advocates for the park system.

“Not only does it recognize an American hero, it’s also a day when people go into parks to clean them up,” Brengel said. “Martin Luther King Jr. deserves a day of recognition … For some reason, Black history has repeatedly been targeted by this administration, and it shouldn’t be.”

Some Democratic lawmakers also weighed in to object to the new policy.

“The President didn’t just add his own birthday to the list, he removed both of these holidays that mark Black Americans’ struggle for civil rights and freedom,” said Democratic Sen. Catherine Cortez Masto of Nevada. “Our country deserves better.”

A spokesperson for the National Park Service did not immediately respond to questions on Saturday seeking information about the reasons behind the changes.

Since taking office, Trump has sought to eliminate programs seen as promoting diversity across the federal government, actions that have erased or downplayed America’s history of racism as well as the civil rights victories of Black Americans.

Self-promotion is an old habit of the president’s and one he has continued in his second term. He unsuccessfully put himself forwardfor the Nobel Peace Prize, renamed the U.S. Institute of Peace after himself, sought to put his name on the planned NFL stadium in the nation’s capital and had a new children’s savings program named after him.

Some Republican lawmakers have suggested putting his visage on Mount Rushmore and the $100 bill.



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JPMorgan CEO Jamie Dimon says Europe has a ‘real problem’

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JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon called out slow bureaucracy in Europe in a warning that a “weak” continent poses a major economic risk to the US.

“Europe has a real problem,” Dimon said Saturday at the Reagan National Defense Forum. “They do some wonderful things on their safety nets. But they’ve driven business out, they’ve driven investment out, they’ve driven innovation out. It’s kind of coming back.”

While he praised some European leaders who he said were aware of the issues, he cautioned politics is “really hard.” 

Dimon, leader of the biggest US bank, has long said that the risk of a fragmented Europe is among the major challenges facing the world. In his letter to shareholders released earlier this year, he said that Europe has “some serious issues to fix.”

On Saturday, he praised the creation of the euro and Europe’s push for peace. But he warned that a reduction in military efforts and challenges trying to reach agreement within the European Union are threatening the continent.

“If they fragment, then you can say that America first will not be around anymore,” Dimon said. “It will hurt us more than anybody else because they are a major ally in every single way, including common values, which are really important.”

He said the US should help.

“We need a long-term strategy to help them become strong,” Dimon said. “A weak Europe is bad for us.”

The administration of President Donald Trump issued a new national security strategy that directed US interests toward the Western Hemisphere and protection of the homeland while dismissing Europe as a continent headed toward “civilizational erasure.”

Read More: Trump’s National Security Strategy Veers Inward in Telling Shift

JPMorgan has been ramping up its push to spur more investments in the national defense sector. In October, the bank announced that it would funnel $1.5 trillion into industries that bolster US economic security and resiliency over the next 10 years — as much as $500 billion more than what it would’ve provided anyway. 

Dimon said in the statement that it’s “painfully clear that the United States has allowed itself to become too reliant on unreliable sources of critical minerals, products and manufacturing.”

Investment banker Jay Horine oversees the effort, which Dimon called “100% commercial.” It will focus on four areas: supply chain and advanced manufacturing; defense and aerospace; energy independence and resilience; and frontier and strategic technologies. 

The bank will also invest as much as $10 billion of its own capital to help certain companies expand, innovate or accelerate strategic manufacturing.

Separately on Saturday, Dimon praised Trump for finding ways to roll back bureaucracy in the government.

“There is no question that this administration is trying to bring an axe to some of the bureaucracy that held back America,” Dimon said. “That is a good thing and we can do it and still keep the world safe, for safe food and safe banks and all the stuff like that.”



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