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The last-minute jockeying to become Trump’s Treasury secretary

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The decision over who will be tapped to head Treasury has been hung up as Trump’s transition co-chair Howard Lutnick and hedge fund executive Scott Bessent compete for the president-elect’s attention, according to three people familiar with the discussions.

One major factor that’s delayed the decision is the amount of control Lutnick has exerted in determining what information flows up to the president-elect, two of the sources said. Bessent is meeting with Trump at Mar-a-Lago on Friday, The Washington Post reported.

The jockeying between Lutnick, the head of New York investment bank Cantor Fitzgerald, and Bessent, a former George Soros protege who now leads his own hedge fund, has left Treasury as one of the biggest remaining question marks in the Trump 2.0 cabinet.

The Treasury secretary is a powerful position whose jurisdiction includes financial markets, the issuance of U.S. debt, economic national security matters, tax policy and the strength of the dollar. Donald Trump’s choice for the job is also expected to have a hand in selecting other top positions with a say in setting economic policy and Wall Street regulation.

Bessent, the founder of the investment firm Key Square Group, had widely been viewed as the front-runner until Lutnick began to make his own case to lead Treasury, according to the people. Lutnick’s empire includes Cantor Fitzgerald as well as FMX Futures, which is a new competitor to the exchange behemoth CME Group.

But Bessent, who was little known in Washington policy circles prior to the campaign, gained prominence on the national stage after emerging as one of Trump’s top economic advisers. The former chief investor for Soros’s company has assuaged the concerns of some far-right Trump loyalists — including Steve Bannon and Roger Stone — while maintaining connections with Wall Street traditionalists.

Three people familiar with the transition say the door is still open for another candidate, such as former National Economic Council Director and Fox Business host Larry Kudlow, who remains close to the president.
Other contenders who are said to be in consideration include Robert Lighthizer, Trump’s former U.S. trade representative, former Goldman Sachs executive and Trump adviser Gary Cohn, and Marc Rowan, the head of Apollo Global Management.

“President-Elect Trump is making decisions on who will serve in his second Administration. Those decisions will be announced when they are made,” transition spokesperson Karoline Leavitt said in a statement.

Lutnick’s role as one of Trump’s advisers on the transition has provided him with more access to the president-elect than other Treasury candidates as speculation mounted about his emergence as a top contender for the role. Meanwhile, Bessent has embarked on a media campaign that included appearances on Fox News and Bannon’s podcast, as well as an op-ed defending the use of tariffs that was published on Fox’s website on Friday morning.

One source said Bessent’s frequent appearances in the media were indicative of how difficult it has been to capture Trump’s attention as Lutnick helped the president with policy and personnel decisions. Lutnick allies say the Cantor CEO hasn’t been in a position to run a public campaign because of his role at the helm of the transition.

Bessent, Lutnick and Kudlow did not respond to requests for comment.

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Congress

Congress moves to scrutinize AI use in federal court

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A group of lawmakers are set to introduce legislation Thursday to examine the use of artificial intelligence in federal courts, according to bill text obtained by Blue Light News.

Sens. Roger Wicker (R-Miss.) and Peter Welch (D-Vt.), along with Rep. Harriet Hageman (R-Wyo.), are preparing to unveil the bipartisan, bicameral Research and Oversight of Artificial Intelligence in Courts Act of 2026. The bill would establish a 15-member task force to study the use of AI-powered speech-to-text and speech recognition tools, with a focus on privacy, civil liberties and accuracy.

The panel would include federal judges, prosecutors, court clerks and other judicial experts and would be required to report its findings to Congress and the attorney general within 18 months.

Clear federal guidelines for AI use in U.S. courts have yet to be established, as broader concerns about the technology grow on Capitol Hill. Last year, Reuters reported that two federal judges withdrew rulings in separate cases after lawyers flagged factual inaccuracies and other serious errors. In one New Jersey case, a draft decision that included AI-generated research was mistakenly posted to the public docket before undergoing review, according to the report. In response to questions from Senate Judiciary Chair Chuck Grassley (R-Iowa), the judges attributed the snafus to court staffers using generative AI tools for drafting and research.

“As the Senate’s only former public defender, I know it firsthand: Court reporters and captioners are irreplaceable,” Welch said in a statement. “When it comes to the use of AI in the courtroom, there are still substantial privacy and civil liberty concerns that need to be addressed.” Wicker said, “Ensuring accuracy is critical to fair justice.”

Technology-related privacy and civil rights concerns are currently top of mind for lawmakers in Congress, as Speaker Mike Johnson seeks to put an 18-month extension of Section 702 of the Foreign Intelligence Surveillance Act on the House floor next week.

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Senate recess at risk if DHS shutdown continues, Thune says

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Senate Majority Leader John Thune suggested Thursday the Senate will not go on recess as planned at the end of next week if the Department of Homeland Security isn’t funded by then.

“We need to get this resolved and it needs to get resolved, you know, by the end of next week,” Thune said. “I can’t see us taking a break if the [department’s] still shut down.”

Thune’s comments to reporters come as a bipartisan group of senators, including members of the Appropriations Committee and a clutch of Democrats that helped negotiate the end to the last shutdown, meet privately in the Capitol with Tom Homan, Trump’s border czar.

The meeting — coming as TSA staffing issues create long lines at some airports — is the first sign in weeks of potential momentum in the DHS funding.

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Epstein’s lawyer tells House Oversight investigators he had ‘no knowledge’ of Epstein’s crimes

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Darren Indyke, Jeffrey Epstein’s lawyer and a co-executor of his estate, told the House Oversight and Government Reform Committee that he had no knowledge of the convicted sex offender’s crimes and rejected aspersions that he knowingly facilitated Epstein’s trafficking, according to a copy of prepared remarks obtained by Blue Light News.

The attorney’s defensive posture in the closed-door deposition on Thursday comes amid mounting pressure on the Justice Department and lawmakers to pursue criminal accountability for others who could have played a role in Epstein’s scheme. In his prepared opening statement, Indyke noted that he was appointed a co-executor of Epstein’s estate in 2019 by the U.S. Virgin Islands probate court, has cooperated with the Justice Department, and helped found the Epstein Victims’ Compensation Program.

“Let me be clear: I had no knowledge whatsoever of Jeffrey Epstein’s wrongdoings,” Indyke told congressional investigators, according to the prepared remarks. “My complete lack of involvement in that misconduct is a matter of record: not a single woman has ever accused me of committing sexual abuse or witnessing sexual abuse, nor claimed at any time that she or anyone else reported to me any allegation of Mr. Epstein’s abuse.”

He maintained that his relationship with Epstein was not social in nature and that he was only one of the lawyers with whom Epstein consulted — a list that included Kenneth Starr, the former independent counsel who investigated the fallout of Bill Clinton’s affair with Monica Lewinsky.

“My primary role was to provide corporate, transactional and general legal services to Mr. Epstein and his companies, and I did so,” Indyke planned to say.

Only one person has been convicted as part of Epstein’s sex trafficking scheme: Ghislaine Maxwell, a longtime associate now serving 20 years in prison for her role in the crimes. She is seeking a pardon from President Donald Trump.

Indyke is the latest in the Oversight committee’s string of closed-door depositions with people in Epstein’s orbit. Epstein’s onetime client and former Victoria’s Secret CEO Les Wexner and another co-executor of Epstein’s estate Richard Kahn also testified. House Oversight Chair James Comer (R-Ky.) has also subpoenaed Attorney General Pam Bondi to testify before lawmakers over her handling of the Epstein files.

Unlike Wexner and Kahn, Maxwell invoked her Fifth Amendment right when she was questioned by the Oversight committee in a virtual deposition as part of its investigation into Epstein.

According to his prepared remarks, Indyke also denied any involvement in the facilitation of so-called “sham marriages” for women around Epstein, an allegation that appeared in a complaint filed in court by the government of the U.S. Virgin Islands. He described his onetime client as being “extremely contrite” after his 2008 sex crime conviction and added that he believed Epstein when he said did not know the woman was a minor.

“That I did not know what my client did in his private life may be difficult for some to believe, but it is true,” Indyke said.

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