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The mad scramble to be Trump’s Treasury secretary

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Donald Trump’s political revival was fueled by a populist economic message that hit home with an electorate weary of Biden-era high prices and interest rates. Now the president-elect is having a hard time picking a quarterback to run his economic game plan.

Nearly two weeks after Election Day — and after a flurry of high-profile Cabinet picks that blindsided Washington policymakers and industry leaders — Trump has yet to name his pick for who will lead the Treasury Department. Fighting between Trump world factions that support transition co-chair Howard Lutnick and hedge fund executive Scott Bessent has spilled into public view.

Two sources told Blue Light News on Sunday that the president has grown frustrated by the jockeying between the two top candidates, and his delay in making a selection has lifted the odds of one of the other rumored contenders like Trump’s longtime trade policy adviser Robert Lighthizer, Sen. Bill Hagerty (R-Tenn.) and Apollo Global Management CEO Marc Rowan emerging as a spoiler. The New York Times on Sunday night reported that former Federal Reserve Gov. Kevin Warsh is also now in the running and that certain candidates may be asked to interview this week.

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

The infighting has thrown into question who will ultimately be tasked with a powerful job jurisdiction which includes financial markets, the issuance of U.S. debt, economic national security matters, tax policy and the strength of the dollar. Other key economic posts, including director of Trump’s National Economic Council, Commerce Secretary and U.S. Trade Representative, also remain unfilled.

Bessent, the CEO of Key Square Group and a frequent Trump campaign surrogate, had been widely viewed as the front-runner for Treasury after Election Day. Sources close to the transition say that Trump’s selection process was slowed as Lutnick exerted tight control over what information is presented to the president-elect, which created challenges for Bessent — or other candidates — to deliver their own pitch. Bessent met with the president at Mar-a-Lago on Friday.

Elon Musk, the unpredictable founder of Tesla and a top adviser to Trump, entered the fray over the weekend, arguing that Lutnick would be a stronger pick for the role. Bessent represented the “business-as-usual choice,” Musk posted on X, the social media network he purchased two years ago. “Business-as-usual is driving America bankrupt, so we need change one way or another.” He later added that he was open to hearing more about Bessent, and the two reportedly spoke before Musk joined Trump ringside at a UFC match on Saturday night.

Robert F. Kennedy Jr., Trump’s choice to lead Health and Human Services, injected the incoming president’s crypto policy agenda into the mix with a post on X about how bitcoin would “have no stronger advocate than Howard Lutnik [sic].”

Meanwhile, Bessent’s allies on Wall Street were campaigning as well, arguing that the macro hedge fund CEO’s solid understanding of markets would help the president execute his policies without causing undue disruptions to financial markets or the broader economy.

“I’ve known Scott for almost forty years, as he was my first professional hire at Chanos & Co.,” Jim Chanos, the famed short-seller, told Blue Light News. “While we might disagree on politics, there is no questioning his character, patriotism and intellect. He would make an outstanding Treasury Secretary.”

The Financial Times on Sunday reported that Trump advisers have sought assurances from the top candidates that they “are committed to his sweeping tariffs plans.” The story included a detail about how Lighthizer — a tariff hardliner who served as Trump’s trade representative during the first administration — “had previously expressed interest in becoming Treasury secretary.”

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Congress

Republicans balk at going it alone on Iran war funding

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Congressional Republicans are confronting serious doubts they can pass Iran war funding on their own, especially as the potential price tag balloons into the hundreds of billions of dollars.

The alternative — relying on a handful of Democrats to push it through the Senate — doesn’t look any more likely as Middle East hostilities expand, energy prices rise and more Democratic lawmakers dig in against an unpopular war.

In recent weeks, some in the GOP floated using the party-line budget reconciliation process to give the Pentagon a slug of new money without needing to gather 60 votes in the Senate. But the revelation that a war funding request could reach $200 billion has quickly cooled those hopes, given the political complications of finding offsets for the spending and the procedural gyrations it would require.

“It’s such a contortion to make things fit in reconciliation that there’s probably a preference for regular order,” Senate Armed Services Chair Roger Wicker (R-Miss.) said in an interview.

The fresh doubts come on top of long-running warnings from at-risk Republican lawmakers that pursuing another party-line bill could force them into a politically painful position in the months ahead of the midterms. Spending tens or hundreds of billions of dollars on the war could lead Republicans to further slash safety-net programs as they did in last year’s “big, beautiful bill” — creating a messaging bonanza for Democrats.

“It’s not going to happen,” one House Republican, granted anonymity to speak candidly, said of a second reconciliation bill. “Certain people have to talk about it as a possibility and keep the issue alive.”

But many House Republicans argue that a party-line bill is the only viable option to deliver the war funding President Donald Trump wants.

As they quietly consider whether to send more U.S. troops to the Middle East, Trump and Defense Secretary Pete Hegseth each declined Thursday to dispute reports that the Pentagon is seeking a $200 billion request after it was first reported by the Washington Post.

“It’s a small price to pay to make sure that we stay tippy-top,” the president said in the Oval Office, adding that the military needs “vast amounts of ammunition” to fulfill its mission in Iran and elsewhere around the globe.

House GOP leaders and committee chairs discussed the possibility of adding military funding to a potential party-line bill during a closed-door meeting at their policy retreat in Florida last week.

“Can we accomplish his priorities in regular order in appropriations? I think it would be unlikely, because I don’t think Democrats are interested in supporting military spending right now,” House Budget Chair Jodey Arrington (R-Texas), a longtime reconciliation cheerleader, said in an interview this week.

At the moment, “unlikely” is underselling the depth of Democrats’ aversion to funding the war. Even those senators who aren’t summarily ruling out support for an emergency funding bill say they would not possibly entertain it under the current circumstances.

“I’ve got to see the details,” said Maine Sen. Angus King, an independent who caucuses with Democrats. “To be honest, it’s going to be hard for me to support it because I think this war was a mistake, wasn’t justified, hasn’t been supported by the Congress.”

The sky-high $200 billion figure — which exceeds the Pentagon funding in last year’s GOP reconciliation bill and is higher than any supplemental funding bill enacted in the post-9/11 era — has some Republican hard-liners eager to pursue another budget reconciliation bill. Many argue it would pave the way for big cuts to domestic spending they oppose, including potentially Medicaid and other social programs.

“It would be very difficult to pass a very large supplemental without it being paid for,” said Rep. Andy Harris (R-Md.), chair of the House Freedom Caucus. “There are hundreds of billions of dollars we can still save in fraud, waste and abuse in reconciliation.”

Senate GOP appropriators are hoping to build bipartisan buy-in for Pentagon funding and see disaster aid and farm assistance as potential sweeteners for Democrats. Others are now floating attaching Ukraine aid, something with broad Democratic support and uneven GOP buy-in.

Still others, including Sen. Lindsey Graham (R-S.C.), simply want to dare Democrats to vote against funding the military. “I’d hate to be the senator who denied the request … because you’ve got troops in harm’s way,” he said.

So far, most Democrats do not appear to be cowed by the threats or interested in horse-trading.

“Look, pinning us against our own interests isn’t something I’ll support,” said Rep. Mike Quigley (D-Ill.), a strong advocate for Ukraine aid.

House GOP leaders declined to tip their hand Thursday as they awaited a formal request from the White House, as well as Trump’s fiscal 2027 budget plan. House Majority Leader Steve Scalise said war funding would be a matter of “negotiation” at some point, “but it hasn’t started yet.”

House Appropriations Chair Tom Cole (R-Okla.) cautioned that the discussions are “all speculative” for the time being while acknowledging reconciliation “might be the only way” to get Pentagon money through the Senate.

Across the Capitol, top Senate Republicans aren’t yet seriously considering trying to pass war funding on party lines — underscoring the longstanding split between House and Senate GOP leaders over how far they should go to pursue an election-year reconciliation bill.

The reticence among some Senate Republicans, according to three people granted anonymity to disclose private thinking, is that there isn’t yet a clear proposal that could get 50 GOP votes. Conservatives, they say, are floating an array of proposals that don’t have broader buy-in and could run afoul of the Senate’s strict reconciliation guidelines. And they expect a second bill would reopen the party’s old wounds over offsetting spending cuts.

“I’ll try and insist that we pay for it,” said Sen. Ron Johnson (R-Wis.), one of the party’s loudest deficit hawks.

But without a party-line package, Senate Republicans will have to convince enough Democrats to reach the 60-vote threshold, and they appear to be nowhere close.

“This administration needs to tell Congress definitely what they’re doing and how long this is going to take,” said Sen. Patty Murray of Washington, the top Appropriations Democrat. “We’re not going to write them a blank check.”

Katherine Tully-McManus and Jennifer Scholtes contributed to this report.

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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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