The Dictatorship
Trump and Musk refusing to pay USAID’s bills threatens far more than foreign aid
The Supreme Court on Wednesday night temporarily paused a looming deadline for the Trump administration to release more than $1.5 billion in foreign aid funding. Chief Justice John Roberts’ order was brief but still a major win for the White House in its effort to tear down the U.S. Agency for International Development. In coverage of and reaction to the Supreme Court’s ruling, one fact has gone underemphasized: The lower court order, which is now on hold, required the government to pay for work that has already been completed.
The administration’s withholding of that money represents a stunning disregard for contracts signed and executed in good faith. This culture of deliberate default on display can’t spring from nowhere — it must be encouraged and supported at the top. Given the history of the two men driving this rapid, and likely illegaldismantling of USAID, it follows that President Donald Trump and Elon Musk see paying bills as merely an option that can be discarded.
The administration’s withholding of that money represents a stunning disregard for contracts signed and executed in good faith.
Since Trump was inaugurated, USAID has been the most imperiled test subject of his administration’s mad experiment to consolidate control of the federal government. The foreign aid freeze that he signed on his first day immediately jeopardized thousands of projects and many more lives around the world. A lack of understanding of how federal payment systems work reportedly led Musk and his Department of Government Efficiency to say they believed USAID workers were willfully skirting the freeze — and deserved to be made into an example.
Musk tried to dodge blame for one of the “accidentally canceled” programs, claiming that DOGE quickly “restored” funding for Ebola prevention that USAID administers. Current and former USAID officials told The Washington Post that is false. In fact, most of the aid work USAID was doing remains paused. Earlier this month, U.S. District Judge Amir Ali ordered the administration to disburse funding that USAID had previously promised to pay contractors and grant recipients. When the State Department’s lawyers dithered in court Tuesday on whether that money had been released, the judge on Tuesday issued a follow-up order to have USAID pay up for work that had already been done prior to his initial Feb. 13 order. The Trump administration argued to the Supreme Court that there wasn’t enough time to carry out Ali’s order, leading to Roberts’ stay.
Purposefully letting bills go unpaid is something that most Americans have been conditioned to regard as rightly punishable; it is only the rich who can afford to disregard paying their creditors. Over the years, Trump and Musk have both been accused of reneging on deals after already receiving the benefit of others’ labor.
Trump and his companies have been subject to numerous legal actions from contractors and others accusing the real estate developer of welching on deals. “The actions in total paint a portrait of Trump’s sprawling organization frequently failing to pay small businesses and individuals, then sometimes tying them up in court and other negotiations for years,” USA Today reported in 2016. “In some cases, the Trump teams financially overpower and outlast much smaller opponents, draining their resources. Some just give up the fight or settle for less; some have ended up in bankruptcy or out of business altogether.”
Another investigation that year from The Wall Street Journal found “a pattern over Mr. Trump’s 40-year career of his sometimes refusing to pay what some business owners said Trump companies owed them.” Trump told the Journal he paid “thousands of bills on time,” which is not the same as all of his bills. He likewise told Reuters in a separate inquiry about his business practices: “‘I’ve had many people that when they work for me they get very rich,’ Trump said … but, ‘sometimes I renegotiate.’ Adding: ‘I’ll do that with probably 10 or 15 percent of contractors.’”
Purposefully letting bills go unpaid is something that most Americans have been conditioned to regard as rightly punishable; it is only the rich who can afford to disregard paying their creditors
Musk’s companies have also been subject to similar complaints. Within four months of his takeover of Twitter (now dubbed X) in late 2022, six companies sued his new business over unpaid bills. After less than a year under Musk, the number of lawsuits over unpaid bills had grown to more than two dozen. “Suing X,” wrote Ars Technica’s Jon Brodkin“seems to be the most effective method of collecting on unpaid invoices.”
Reuters also reported last year that based on a review of Texas property records, Musk’s rocket company SpaceX has been slow to pay bills for work done as it expands. Reuters noted at the time that it “couldn’t determine for every lien whether outstanding bills were owed by SpaceX or by one of its contractors who commissioned work or materials on its behalf,” and Musk has attacked Reuters’ reporting repeatedly via his X account. As with Trump, many of those cases involving Musk have been settled while others face ongoing, potentially very expensive, litigation.
The amount that Musk and Trump have been accused of not paying totals somewhere in the millions — but the federal contracts at play are measured in the billions. State Department lawyers blamed the delay in restoring that funding on the complexity of the system, claiming it couldn’t be turned back on like a spigot. But in the same filings, they also noted the administration is eliminating 90% of the contracts USAID administers and more than $60 billion in foreign assistance. In short, the Trump administration is arguing that the spigot is under its sole control, not the courts’ or Congress’, and effectively claiming the right to break legally binding contracts on a whim.
Based on the sweeping and arbitrary cuts to staff and funding we’re seeing, USAID won’t be the only agency whose partners and contractors will be subject to this kind of capriciousness. It is entirely possible, though, that the work that still needs to be done in the areas where staffing has been cut and contracts ended will now be much more expensive in the long run. (Think about how Trump’s reported issues with paying his lawyers on time drove up the prices for those attorneys willing to still take him on as a client.)
Musk and DOGE claim that decimating USAID will save taxpayers money and increase government efficiency. Growing doubts that the federal government will pay for services rendered will likely be seen as a bonus for the architects of this quest to fracture the administrative state. If anything, removing trust in government contracts will more likely lead to higher costs for taxpayers, as expensive contractors require upfront payments to ensure that the U.S. won’t simply leave them on the hook once the job is done.
Moreover, blatantly disregarding USAID’s contracts poses a danger to the entire underpinning of our civil court system, which is built on the idea that contracts signed without duress are sacrosanct. Musk and Trump’s actions have suggested instead that for a powerful enough agent — be it a company or the federal government — there can be no enforcement, no accountability should they change their mind. For that reason alone, the Supreme Court’s hold cannot be allowed to stand on the merits, not if contracts are to have any weight of law.
Hayes Brown is a writer and editor for BLN Daily, where he helps frame the news of the day for readers. He was previously at BuzzFeed News and holds a degree in international relations from Michigan State University.
The Dictatorship
Blanche’s confirmation imperiled by GOP holdouts Cornyn, Tillis
The Senate Judiciary Committee postponed a vote on acting Attorney General Todd Blanche’s nomination, a spokesperson said late Wednesday, as two retiring Republicans on the panel dug in over President Donald Trump’s personal “anti-weaponization” deal with the government he runs.
Sen. Chuck Grassley’s decision to delay the committee vote that had been set for Thursday marks a setback for one of Trump’s highest-profile Cabinet nominees, at the hands of Texas Sen. John Cornyn and Sen. Thom Tillis of North Carolina, a pair of Republicans set to leave the chamber next year.
“Chairman Grassley works to set President Trump’s nominees up for success in committee, not failure. Senators Cornyn and Tillis want written assurances from the Department of Justice regarding the Trump-IRS settlement,” the committee spokesperson said.
Blanche’s nomination to permanently head the Department of Justice needs the support of either Cornyn or Tillis to make it out of the committee to a vote by the full Senate, assuming all Democrats remain opposed.
“Why don’t you call over the Department of Justice and tell them they have one hour and 50 minutes to get me what I asked for,” Cornyn told reporters Wednesday afternoon amid the hardening standoff over his demand that Blanche and the DOJ put in writing a commitment never to pursue the president’s prized “anti-weaponization” fund, and to clarify the terms of Trump’s personal deal with the Internal Revenue Service.
Tillis told MS NOW that the conversations were complicated by the need for the Justice Department to get “several parties” to agree on the language of the statement Cornyn and Tillis are seeking.
“What I’ve advised the chair, and I would assume Senator Cornyn said something similar, is that we’re not prepared to vote yes yet,” he added.
“The Department has been in regular communication with Committee members for weeks, and we look forward to continuing to work productively with Senators to address any concerns,” a Justice Department spokesperson said in response to the decision to postpone the committee vote.
Cornyn was set to meet with Blanche on Wednesday morning, but the meeting was called off after Blanche failed to meet the senator’s demand for written proposals to modify the controversial settlement agreement he brokered between Trump and the IRS. The Republican senator is set to leave Congress when his term ends in January after a bruising May primary loss to Texas Attorney General Ken Paxton, Trump’s chosen candidate.
“Maybe John Cornyn’s upset with me because I didn’t endorse him,” Trump told reporters Wednesday afternoon in the Oval Office. “I don’t know what it is, but I haven’t heard that there’s a problem. I heard (Blanche) is going through quite nicely.”
Cornyn made clear to Blanche during his confirmation hearing that he will not get his support until he agrees to reopen and modify the settlement. Due to the committee’s narrow Republican majority, one GOP “no” vote is enough to sink Blanche’s nomination.
The senator has asked Blanche to provide proof that the proposed nearly $1.8 billion “anti-weaponization” fund established as part of the deal between Trump and the IRS is formally dead, and he has also demanded Blanche narrow the tax audit immunity provisions the settlement afforded to Trump and his family.
Blanche has publicly stated that his department has dropped the fund, but he and the DOJ have dodged requests from Cornyn and a federal judge to put that in writing.
After announcing his meeting with Blanche would not take place Wednesday morning, Cornyn told reporters that changes from Blanche “in a modified release form” would be acceptable, but that “for some reason … they simply refuse to do it,” referring to the DOJ.
Shortly after the meeting was called off, a Justice Department official told MS NOW that the department “provided a written proposal to Senator Cornyn’s staff yesterday following ongoing discussion with both the Committee and the Senator’s office.”
Cornyn said that proposal was “not responsive” to his demands because it did not address the tax audit immunity provisions in the settlement, one of his key demands.
In May, Blanche signed an addendum as part of the deal that granted Trump, his family and his businesses immunity from pending IRS tax audits. That agreement, which has been decried by former IRS officials and legal experts as unlawful self-dealing, is being contested in federal court.
Cornyn noted that Blanche testified under oath that he could meet the request during his confirmation hearing.
“Maybe they think I’m just going to give up or you know, go along, but they’re mistaken,” Cornyn said when asked why he thinks the DOJ could be slow-walking his request.
Kevin Frey contributed to this report.
Sydney Carruth is a breaking news reporter covering national politics and policy for MS NOW. You can send her tips from a non-work device on Signal at SydneyCarruth.46 or follow her work on X and Bluesky.
Mychael Schnell is a reporter for MS NOW.
Ebony Davis is a breaking news reporter for MS NOW based in Washington, D.C. She previously worked at BLN as a campaign reporter covering elections and politics.
The Dictatorship
Netanyahu leaves his visit with Trump without a clear endgame on Iran
When Israeli Prime Minister Benjamin Netanyahu arrived this week for his tour of Washington, he may have had a mission in mind.
Netanyahu needed to overcome his newly diminished stature and waning influence over his once close friend President Donald Trump as both leaders grapple with the unpopularity of a war they started together and is escaping their control.
His meeting at the White House with Trump on Tuesday, which was closed to the press, was the first face-to-face encounter between the two allies since the U.S. and Israel launched a joint attack against Iran on Feb. 28.
Trump gave him a muted welcome and afterwards simply described the meeting as “very good.” “Obviously, many important subjects were discussed,” the president wrote on Truth Social.
Rather than an intimate one-on-one setting, the Oval Office was full of top U.S. officials — Vice President JD Vance, Secretary of State Marco Rubio, Treasury Secretary Scott Bessent, Secretary of Defense Pete Hegseth, Chairman of the Joint Chiefs of Staff Gen. Dan Caine, and special envoy Steve Witkoff.
But Netanyahu continued the full court press on the Trump administration.
Over the course of two days, in addition to seeing Trump and attending Sen. Lindsey Graham’s funeral at the Capitol, Netanyahu also met separately with Vance, Hegseth, and Rubio, White House and Israeli officials confirmed to MS NOW.
The Israeli prime minister’s slate of meetings with key U.S. national security officials comes at a pivotal moment in the Iran conflict as tensions escalate in the region and Americans increasingly sour on the war. A recent Quinnipiac poll shows 60% of American voters opposing U.S. military action against Iran and 74% against sending U.S. ground troops into Iran.
Not only does Trump face pressure as Republicans face an uphill battle to retain congressional control in this fall’s midterms, Netanyahu’s fate as prime minister is at stake in Israel’s upcoming September elections – and he can’t afford to lose Trump’s favor.
The talks largely focused on what to do next as Iran continues to menace shipping in the Strait of Hormuz and retaliate against American bases in the region and launch attacks on Gulf allies.
According to a senior Israeli official who was granted anonymity to describe the closed-door meeting, President Trump and Israeli Prime Minister Netanyahu did not come to a final decision after discussing three paths forward: get a “good deal” focused on Iran’s nuclear program and enriched material, have no deal and instead continue the blockade and economic pressure, or take escalated military action.
But Netanyahu did not tell Trump what he should do – nor did he express a preference.
The senior Israeli official noted Netanyahu has not ruled out diplomacy – as long as it is coupled with “very strong pressures,” calling the push to dismantle Iran’s nuclear program “a contest of will and a contest of force.”
“There are ways of squeezing them and squeezing them and squeezing them and negotiating at the same time,” the official said.
Netanyahu did not present President Trump with new intelligence regarding the underground Iranian nuclear facility Pickaxe Mountain, per the senior Israeli official, noting the U.S. and Israel already are constantly sharing intelligence – and know where Iran’s highly enriched material is. “We don’t think it’s moved, and I think we have a pretty good grasp on that,” the official said.
During their meeting on Tuesday, Trump and Netanyahu discussed ways Israel and the U.S. can work together to stop Iran’s nuclear program and get the Strait of Hormuz open to maritime trade, the senior Israeli official said.
The two leaders also discussed a third goal: to continue to undermine the Iranian regime and “possibly create future conditions for a change in that area.” U.S. officials have backed away from pursuing paths that would overthrow the current leadership, but Netanyahu still believes that could happen.
“The chasm that has been created between the people and the regime is not about to be closed,” the senior Israeli official said of Netanyahu’s thinking.
Netanyahu advised Trump in February that Israeli intelligence indicated launching strikes against Iran would lead to the toppling of the Islamic Republic’s regime – and five months later, the slain ayatollah’s son retains power with a close circle of hardliners, calling into question the accuracy of Israel’s intelligence apparatus.
But the senior Israeli official said at the time, Netanyahu did not promise the Iranian people would take fate into their own hands following a coordinated attack. Rather, he chose his words carefully and said that an attack could create conditions to “advance the probability or the possibility that that would happen.”
The conditions needed for the Iranian regime to fall, “did not materialize,” the official told MS NOW, adding, “not for lack of insight, but for either operational failure or decisions that were made.”
Despite Netanyahu insisting Israel and the U.S. are on the same page, differences still remain: the sale of F-35 fighter jets to Turkey and the Saudi nuclear arrangement did not come up during Wednesday’s White House meeting, according to a second Israeli official granted anonymity to describe sensitive discussions.
Meanwhile, the conflict continues to spread, with an Iranian drone attacking a U.S. gas storage tanker off the coast of Egypt on Wednesday.
Trump indicated he would not let Iran’s latest action slide, telling reporters on Wednesday that the U.S. would retaliate against Iran even as he leaves room for diplomatic talks to resume.
“It’s our turn, and we’ll see if we get there with an agreement at some point,” Trump said. “But we’re going to hit them very hard.”
As for what it would take for Israel to join the U.S. strikes, the senior Israeli official said that if Israel is attacked by Iran, “We will respond very, very forcefully and very quickly. And I think Iran would make a great mistake.”
Julia Jester covers politics for MS NOW and is based in Washington, D.C.
The Dictatorship
FIFA faces global anger over plan to give Kushner brother a financial stake
International rage over FIFA’s close ties to President Donald Trump has reached a fever pitch after soccer’s governing body announced a plan to sell a significant stake to an investor group led by Joshua Kushner, the brother of Trump’s son-in-law.
The president and his family have all but turned the White House into their personal piggy bank. And FIFA — which has its own sordid history of corruption — seems to have made itself a party to Trump’s self-enrichment under Gianni Infantino’s leadership, such as by paying for space inside Trump Tower in New York. (The organization has defended the office rental as a World Cup outpost.)
Soccer is seen by many as a unifying game. But Trump’s incorporation of FIFA into his political dynasty is threatening that idea.
FIFA has announced plans to sell a large minority stake in a new company that will run its main events, including the World Cup and Club World Cup, as part of a plan to triple the amount of development money it dishes out to its 211 member associations.
Under the proposals — which are subject to approval by a majority of those national associations and FIFA’s 37-member council — a new entity called FIFA Forward Enterprises (FFE) will take over all commercial operations, while FIFA remains the game’s global governing body and retains a majority stake in FFE.
A press release from FIFA confirmed the plans and said Thrive Eternal, which was launched by Joshua Kushner, is expected to lead the investment group that would control FIFA Forward Enterprise. FIFA did not clarify why Thrive Eternal was selected, and Kushner was already dabbling in sports.
But Trump basically has already given son-in-law Jared Kushner carte blanche to dictate U.S. foreign policy in the Middle East while simultaneously hatching business plans in the region. (Jared Kushner has denied any conflicts of interest.)
Joshua Kushner reportedly has been a major donor to Democrats. But, predictably, the idea of another Kushner becoming financially entwined with the World Cup — the world’s most popular sporting event — and basically being dropped into a position of global significance isn’t going over well. Several other soccer governing bodies have expressed concerns, including Europe’s UEFA.
“This crosses a line that football’s governing institutions should never cross,” UEFA said in a statement about The Athletic’s report, adding: “The soul and governance of football are not assets to trade — especially with zero transparency as to who gains financially. None of us are the owners of football. It is not FIFA’s to sell.”
Democrats on the House Judiciary Committee also rebuked the plan, writing on X: “Apparently the fake Peace Prize and giant lease with Trump Tower weren’t enough — now Infantino performs a kickback hat trick by pursuing a multibillion-dollar deal with Jared Kushner’s brother to sell ownership stakes in the World Cup to private investors.”
FIFA, Donald Trump’s favorite corrupt racketeering enterprise in world sports, is now going directly into business with the Trump family!
Apparently the fake Peace Prize and giant lease with Trump Tower weren’t enough—now Infantino performs a kickback hat trick by pursuing a… https://t.co/knSZibuMea
— House Judiciary Dems (@HouseJudiciary) July 28, 2026
Rep. Jamie Raskin, D-Md., has already launched an investigation into the FIFA leader’s relationship with the Trump administration, while dozens of European lawmakers — citing concerns about “potential breaches of political neutrality” — have called for the FIFA Ethics Committee to investigate Infantino. This new proposal seems unlikely to assuage those concerns.
But what it does seem likely to do is fuel global anger toward the U.S. — the kind that has been growing since Trump retook office.
And when you consider that, it’s truly remarkable how the same MAGA movement whose members whined for years about politics mixing with sports is now in lockstep with a president who seems dead-set on casting his shadow over every sports event he can.
This post on X basically sums up the foul stench around FIFA’s latest proposal.
Sepp Blatter was Infantino’s predecessor as FIFA president and oversaw the organization amid some of its many scandals. When heof all people, is warning about how Trump and Infantino’s relationship is “deeply damaging” soccer, it’s a sign of how far FIFA has descended into the gutter.
Ja’han Jones is an MS NOW opinion blogger. He previously wrote The ReidOut Blog.
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