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Trump slams Carter’s Panama Canal deal as he’s set to lie in state

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President-elect Donald Trump slammed Jimmy Carter’s agreement to transfer ownership of the Panama Canal to Panama as a “disgrace” — on the first day the late former president is set to lie in state at the U.S. Capitol.

“Jimmy Carter gave it to them for $1 and they were supposed to treat us well. I thought it was a terrible thing to do,” Trump said Tuesday at a news conference at Mar-a-Lago.

Carter died last month at 100 years old. On Tuesday, his casket was transferred to Washington, D.C., where he will lie in state at the Capitol before his funeral on Thursday.

The Democrat signed the Torrijos-Carter Treaties in 1977 during his one term in office, setting in motion the 1999 transfer of the U.S.-built infrastructural wonder to the country of Panama. No part of those agreements included a $1 sale.

“Nobody wants to talk about the Panama Canal now, it’s inappropriate I guess, because it’s a bad part of the Carter legacy,” Trump said later in the press conference. He added that Carter was “a good man” and “a very fine person,” but that “giving the Panama Canal to Panama was a very big mistake.”

“And I believe that’s why Jimmy Carter lost the election in my opinion, moreso maybe than the hostages,” Trump said, referring to American diplomats in Iran who were held hostage for over a year.

Trump has been threatening to take back the Panama Canal — a link between the Atlantic and Pacific Oceans essential for global trade — and railed against the Panamanian president, José Raúl Mulino, who has maintained that the canal will remain under his country’s control.

“They laugh at us because they think we’re stupid,” Trump said Tuesday of Panama. “But we’re not stupid anymore, so the Panama Canal is under discussion with them right now. They’ve violated every aspect of the agreement and they morally violated it also.”

Asked by a reporter if he could “assure the world” he would not use “military or economic coercion” in his efforts to bring the canal and Greenland under U.S. control, Trump said “no.”

“I’m not going to commit to that,” Trump said. “It might be that you’ll have to do something.”

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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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