Apr. 3, 2026, 5:32 PM EDT

A federal judge on Friday denied the Trump administration’s bid to revive the defunct subpoenas targeting Federal Reserve Chair Jerome Powell, another blow to the Justice Department’s ability to execute President Donald Trump’s demands.

The subpoenas sought records from a $2.5 billion renovation project at the Fed’s headquarters in Washington. The investigation alleged Powell knowingly misled Congress about the project’s cost. The accusation became central to Trump’s public smear campaign against Powellwhom he appointed to the top Fed position in his first term.

Powell’s lawyers fought the subpoenas, and the Fed chief publicly argued the investigation was motivated by his refusal to succumb to Trump’s pressure campaign on the central bank to slash interest rates, which the president said will boost the U.S. economy.

In his orderChief Judge James E. Boasberg of U.S. District Court for the District of Columbia wrote, “The Government’s arguments do not come close to convincing the Court that a different outcome is warranted.” He rejected the DOJ’s motion to reconsider his March 13 decision to quash the investigation.

Boasberg wrote in his March 13 decision that “a mountain of evidence” suggested that “the Government served these subpoenas on the [Federal Reserve] Board to pressure its Chair into voting for lower interest rates or resigning.” The judge threw out the subpoenas, but the DOJ quickly filed a motion to reconsider.

On Friday, Boasberg ruled the DOJ’s motion “ignores the fact that its total lack of a good-faith basis to suspect a crime is relevant to the second, separate question of the subpoenas’ true purpose.”

The federal government can formally appeal Boasberg’s decision, which could complicate the confirmation process for  Kevin WarshTrump’s pick to lead the central bank after Powell’s term as Fed chair ends next month.

Powell was joined by every living former Fed chair in denouncing the probe as an act of partisanship against the leader of an institution designed to be insulated from political pressure.

Two Republicans on the Senate Banking Committee, Sens. Thom Tillis of North Carolina and Kevin Cramer of North Dakota, expressed deep concern over the investigation. Sen. Lisa  Murkowski, R-Ala., called the probe “an attempt at coercion,” in a post on X in January.

Tillis is a key vote on the banking committee, which handles confirmation hearings for Fed appointees and has a narrow 13-11 Republican majority. He has vowed not to support Trump’s pick for Fed chair as long as Powell is under criminal investigation.

Apr. 3, 2026, 4:49 PM EDT

The White House released a massive defense budget on Friday that would be historic if passed, as lawmakers and voters continue to express concerns about whether the month-long U.S. military operation against Iran could be more extensive than President Donald Trump has previously suggested.

The $1.5 trillion figure drew quick praise from Republican defense hawks, even as the plan relies on optimistic economic projections, calls for a 10% cut to domestic programs and comes amid an ongoing military campaign in Iran that administration officials say could end in a matter of weeks — though the question of whether ground troops will be deployed remains unresolved.

The budget faces steep odds in the Senate, where Democrats’ support is required for most agency-level spending proposals to clear the 60-vote threshold. Senate Minority Leader Chuck Schumer, D-N.Y., said Democrats will “fight this budget, tooth and nail.” That opposition puts even more weight on Trump’s push for a GOP-only pot of funds through budget reconciliation.

The document makes no mention of the expected debt or annual deficit — data that was regularly published in previous presidents’ budget plans. An Office of Management and Budget spokesperson confirmed the omission as well as the absence of data on expected mandatory spending on programs including Social Security and Medicare, which the administration said it plans to publish later in 2026.

Throughout his 2024 campaign and the first year of his second term, Trump promised to reduce the national debt and deficit through spending cuts, tariffs and investments. According to the Treasury Department’s most recent data, the national debt currently is $39 trillion and the deficit at $1.8 trillion.

Still, hawkish Republican lawmakers showered the plan with praise on Friday.

“President Trump’s budget is truly historic when it comes to defense spending,” Senate Budget Chairman Lindsey Graham, R-S.C., said in a statement. Graham is expected to be a key architect of any upcoming reconciliation bill. “It is the most robust increase in defense spending in many years, and it is more than justified by the threats we face throughout the world.”

Sen. Roger Wicker, R-Miss., and Rep. Mike Rogers, R-Ala., the chairs of the Senate and House Armed Services Committees, pledged in a joint statement to “pass this budget into law,” saying the military boost would “drive the U.S. toward a defense budget of 5% of GDP — a benchmark we have long supported as necessary to maintain our national defense.”

The reconciliation pitch is logistically challenging. Senate Majority Leader John Thune, R-S.D., told reporters Thursday any additional reconciliation work would be “hard and cumbersome” following the months of painstaking negotiations required to pass last year’s Republican tax-and-spending bill.

Trump’s budget also envisions deep reductions after the proposed 2027 surge: The defense budget would drop by 15% in 2028 and would freeze at less than $1.4 trillion in subsequent years. Over the longer term, the proposal calls for a decrease in military spending as a share of the economy, dropping it to 2.6% of GDP in 2036.

Trump’s economic projections are notably optimistic. The budget assumes an annual inflation-adjusted “real GDP growth” rate of 2.9% indefinitely — more than a full percentage point higher than the 1.8% long-term forecast from the nonpartisan Congressional Budget Office.

Amid ongoing battles in Congress over funding for the Department of Homeland Security, the budget proposal notes that the Working Families Tax Cut Act delivered more than $190 billion for border security and immigration enforcement programs over five years, including $10 billion for Immigration and Customs Enforcement and $18.5 billion for Customs and Border Protection. Trump nonetheless requested an additional $63 billion in discretionary budget authority for the DHS for 2027 — a 3.3% decrease from the level in the 2026 continuing resolution.

The proposal calls for a wide range of other cuts and program eliminations. It directs Congress to begin “the process of privatizing” airport security screening at the TSA, projecting $52 million in savings, and cuts $1.3 billion in non-disaster grant programs at FEMA, an agency Trump has repeatedly derided as “expensive.”

The Cybersecurity Infrastructure Security Agency would see a $707 million cut. The budget plan criticizes the agency’s work that “focused on so-called misinformation and propaganda.”

NASA would face a 23% budget cut, including the elimination of the Mars Sample Return mission.

Health programs would take broad hits. The Department of Health and Human Services would see a 12.5% reduction from the prior year, including a $5 billion cut to the National Institutes of Health, a $4 billion reduction to the Low Income Home Energy Assistance Program and an $819 million cut to the Unaccompanied Alien Children program.

The Environmental Protection Agency’s annual budget would be cut in half, with reductions to state grants and Superfund cleanup programs, among others.

The National Park Service would receive $2.5 billion in overall budgetary resources, a $739 million — or 23% — cut from last year.

Foreign aid would face continued reductions, building on the 2025 DOGE campaign that shuttered the United States Agency for International Development. The budget proposes eliminating funding for Food for Peace grants and the National Endowment for Democracy.

The proposal would also eliminate several Department of Housing and Urban Development programs that provide assistance to low-income and marginalized communities, including the Community Development Block Grant, the Homeless Assistance Program and Native American programs.

Despite Trump’s pledge to dismantle the Education Department, the budget proposes a comparatively modest cut to the agency — $76.5 billion in discretionary authority, a 2.9% decrease from 2026. It seeks to restructure K-12 programs to reduce the federal role in education and would cut funding to colleges and universities by $2.7 billion, including programs serving minority-serving institutions.

The sweeping cuts to non-military programs will only deepen Democratic opposition. And nearly all of the budget — apart from the $350 billion reconciliation component — will require 60 Senate votes to advance.

“The vision President Trump has outlined for America in his budget is bleak and unacceptable,” Senate Appropriations Vice Chair Patty Murray, D-Wash., said in a statement. “President Trump wants to slash medical research to fund costly foreign wars. It doesn’t get more backward than that, and the only responsible thing to do with a budget this morally bankrupt is to toss it in the trash.”