Good afternoon,

After tariffs went into effect for dozens of countries last week, Trump has agreed to extend the tariff truce with China for another 90 days, setting a new deadline for November 10. The extension provides the world's two largest economies with more time to settle their differences, as it was set to expire today. On Sunday evening, Trump asked China to purchase four times the number of soybeans, which would help reduce America's trade deficit with China. If China accepts this as part of a deal, it will come as a massive relief to soybean farmers across America. Since the trade war began earlier this year, soybean farmers have been struggling, as farmers rely on foreign markets like China to purchase their crops. The President has offered an opportunity to relieve some of the stress these farmers face.

Here are a few important updates...

THE "LIBERATION" OF D.C.

On Monday morning, Trump announced plans to activate the National Guard in Washington, D.C. Trump has repeatedly threatened a federal takeover of the nation's capital, claiming that violent crime is "out of control." Despite his claims about the level of crime in the capital, violent crime has dropped sharply over the past two years, hitting a 30-year low. The plan will place D.C. police under direct federal control, deploying National Guard troops to fight crime and clear the city's homeless population – a move against local sovereignty.

Trump's plans raise questions about the future of D.C. and the increasing use of military forces on American soil to carry out the president's agenda. Earlier this year, Trump deployed National Guard troops to Los Angeles protests over ICE raids, bypassing California Governor Gavin Newsom. Unlike states, D.C. does not have control over its National Guard, giving Trump more freedom in deploying troops. The unique structure of the city gives the federal government more authority to exert control over its affairs. The city gained limited powers in 1973 with the Home Rule Act, which allowed residents to elect a mayor, council members, and neighborhood commissioners, while Congress maintains powers over local laws and the local budget. Trump has called the federalization of the district the "liberation day in D.C.," not the first time he has used the phrase.

The future of the nation's capital is uncertain – but it is clear that Trump is doing everything he can to exert and consolidate his power. Going after strongly-blue cities and undermining democratic norms, the administration is looking more and more authoritarian by the day.

 
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RURAL SCHOOLS AT RISK

Across the country, school districts in rural areas are facing challenges that threaten their capacity to deliver quality education. With unstable funding of schools and the impending doom of the Department of Education, districts are left uncertain about what the next year will look like. Earlier this summer, the Trump administration blocked the release of $7 billion for critical programs. Weeks later, the funds were released, but not after causing chaos within school districts as they scrambled to find alternatives. This doesn't just impact the school budgets but undermines the stability rural communities rely on. Districts have had to delay hiring, adjust programs, and decrease services that are essential for the success of students.

The effects of this funding whiplash is stronger for rural districts, which are more dependent on federal grants than urban or suburban districts. In many rural communities, federal funding represents more than 10% of district revenues. One Wyoming district, with just 80 students, was counting on $30,000 in federal grants – enough to fund an educator's position for a year. When the funds were frozen, administrators had no choice but to keep a vital position vacant, directly impacting students.

These funding issues are compounded by the Trump administration's efforts to shut down the Department of Education. The department's workforce has been cut nearly in half, which has led to uncertainty, information delays, and all-around operational chaos. Any effort to completely eliminate the department would have to go through Congress, and would likely raise opposition from education leaders around the country. It will be difficult for the administration to shut down the Department of Education – but for now, the administration is flexing its power and showing it has the ability to impact education.

UP UP AND AWAY!

Look up! Is it a bird? Is it a plane? No, it's the sky-high prices Trump's tariffs are costing American consumers. Inflation rose again in July as month-over-month prices increased for the third straight month, with the inflation rate bumping up to 2.7%. This inflationary trend is heating up before even more significant price increases will start to hit in October. As retailers use up their existing inventory of imported goods, the high tariffs – that U.S. taxpayers pay for when they buy goods – that Trump has championed will start walloping consumers' wallets. If the monthly CPI report continues to show the inflationary increases of Trump's economic policies, it will only be a matter of time before even more members of the Bureau of Labor Statistics (BLS) are fired.

EJ Antoni, a Heritage Foundation staffer and Project 2025 co-author, is Trump's nominee to replace the recently fired head of the BLS. Today, Antoni suggested the BLS should stop issuing its monthly jobs reports. Can a suspension of inflation data be far behind? From now on, we will be getting reports on the economy from the Bureau of Vibes.

NUMBER OF THE WEEK

30 Days: The amount of time Trump can legally federalize the Washington, D.C. police.

The 1973 Home Rule Act allows for the President to federalize D.C. police for up to 30 days, but only in the event of an emergency. Trump has speciously used claims about crime and homelessness as his reason for taking yet another unprecedented step to seize ever more power for himself. In reality, crime in D.C. is at a 30-year low, and homelessness, which surged during Trump's first term in office, has also been declining.

   Looking Ahead
  • October 1stThe Deadline for passage of a Continuing Resolution, or full annual budget, to prevent a government shutdown. Currently, Congress is out of session to avoid voting on anything related to President Trump's former best friend, deceased child sex trafficker Jeffrey Epstein.

WHAT WE'RE READING

 

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