NEW YORK (AP) — The Trump administration said Monday it will resume flying a rainbow Pride flag on a federal flagpole at the Stonewall National Monument in New York City, reversing course two months after removing the banner from the first national monument commemorating LGBTQ+ history.

The government revealed the decision in court papers as it agreed to settle a lawsuit filed by advocacy and historic preservation groups who had sought to block the Feb. 9 removal. A judge approved the deal.

The Interior Department and National Park Service “have confirmed their intention to maintain a Pride flag at Stonewall,” lawyers for the government and the groups wrote in a joint court filing.

The flag — one of several Pride banners at the 7.7-acre (3.1-hectare) park — won’t be removed, except for “maintenance or other practical purposes,” the filing said.

Under the agreement, within a week, the park service will hang three flags on its flagpole at the monument. The Pride flag will be positioned below the U.S. flag, in accordance with U.S. flag code, and above the park service flag. Each will measure 3 feet by 5 feet (0.9 meters by 1.5 meters).

The site also features a large Pride flag on a city-controlled flagpole and smaller flags on a fence surrounding the monument, which is across the street from the Stonewall Innthe gay bar where a 1969 police raid sparked an uprising and helped catalyze the modern LGBTQ+ rights movement. Those flags weren’t removed.

“We fought the Trump administration and won,” said Manhattan Borough President Brad Hoylman-Sigal wrote on X. The Democrat helped organize a protest Pride flag raising after the government-authorized banner was removed.

“We as an LGBTQ community celebrate the legal climb-down by the gutless Trump Administration on their contemptuous attempt to erase queer people from American history at Stonewall,” Hoylman-Sigal, the first openly gay person elected to his job, wrote.

Mayor Zohran Mamdani, a Democrat, called the Trump administration’s reversal “a victory for the LGBTQ+ community and for our entire city” and “a reminder that New Yorkers won’t let our history be rewritten.”

The Gilbert Baker Foundation, which honors the Pride flag creator who died in 2017, was among the organizations that sued over the removal.

“Stonewall is sacred ground in the fight for LGBTQ+ liberation, and this resolution helps ensure that the Rainbow Flag will continue to fly there, where it belongs,” foundation President Charley Beal said.

The Pride flag had become a flashpoint for arguments over Republican President Donald Trump ’s approach to Stonewall and various other historical properties.

After a yearslong campaign by activists who wanted the flag symbolizing LGBTQ+ pride to be flown daily inside the park service-run site, the banner was formally installed in 2022 during Democrat Joe Biden ’s tenure.

At the time, park service officials called it a sign of the government’s commitment to “telling the complex and diverse histories of all Americans.”

When it removed the flag in February, the park service said it was complying with federal guidance on flag displays. A Jan. 21 memo largely restricted the agency to displaying U.S., Interior Department and POW/MIA flags, with exemptions that include providing “historical context.”

The park service insisted the monument “remains committed to preserving and interpreting the history and significance of this site” through exhibits and programs. But LGBTQ+ activists saw the flag’s removal as a targeted affront meant to diminish a site that is all about their fight for rights and visibility.

Activists Michael Petrelis and Steven Love Menendez, who fought to have the park service fly the Pride flag, said they were pleased with Monday’s agreement. But, they said, they were dismayed that other symbols, such as the even more inclusive Progress Pride flag, were left out.

“I look forward to the day when the flag display can restored to its original intent that allows all iterations of LGBTQ+ flags to fly,” Menendez said. “Until then at least we have the original rainbow flag flying to serve as a beacon of light.”

Democratic President Barack Obama created the Stonewall monument in 2016.

After Trump returned to office last year, he took aim at diversity, equity and inclusion initiatives, and many references to transgender people were excised from the Stonewall monument’s website and materials.

Trump’s administration similarly has put national parks, museums and landmarks under a messaging microscope, aiming to remove or alter materials that it says are “divisive or partisan” or “inappropriately disparage Americans.”

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Anthony Izaguirre contributed to this report.

WASHINGTON (AP) — White House economists estimate the United States has a shortage of 10 million houses, according to a new report out Monday — and say regulatory cuts could lead to more construction to stabilize pricesincrease home ownership and fuel faster economic growth.

The analysis, part of the Economic Report of the President, outlines both a political risk and a messaging opportunity for President Donald Trumpwhose public approval has slumped because of concerns about his tariffsthe Iran war and his unfulfilled promises to slash inflation and unleash stronger growth.

Trump signed two executive orders in March directing federal agencies to reduce housing regulatory burdens and make it easier for smaller banks to provide mortgages but he’s been slow to take other steps that would show that high housing costs are a top priority for his administration.

The White House has been trying to focus on housing and other affordability issues for months to get ready for what’s expected to be a challenging midterm season for Republicans, but it has been thrown off course by a series of global issues. In January, a speech at the World Economic Forum in Davos, Switzerland, that had been billed as focusing on housing turned into a showdown for Trump over control of Greenland.

Meanwhile, the Iran war has driven up the cost of buying homes, with average rates for 30-year mortgages jumping from just under 6% to 6.37%.

Trump also has argued in favor of keeping home prices high to protect values for existing owners. “I don’t want to drive housing prices down,” Trump told his Cabinet earlier this year. “I want to drive housing prices up for people that own their homes, and they can be assured that’s what’s going to happen.”

The report lays out a blueprint on housing

The housing chapter of the annual economic report, obtained by The Associated Press before its release, lays out a blueprint for how more home construction would help the middle class and the overall economy, setting up an argument that Trump could make to voters.

Put together by staff at the White House Council of Economic Advisers, it finds there would be 10 million more houses in the country if “homebuilding and the growth of the single-family housing stock had continued at their historical pace instead of falling dramatically” after the 2008 global financial crisis. That crisis was caused largely by a wave of defaults in the housing market, where prices had been fueled by problematic lending practices.

The analysis notes that home prices have risen 82% since 2000, while incomes are up just 12% — a mismatch that had been masked for a period by historically low mortgage rates. But when rates jumped with inflation in the aftermath of the pandemic, monthly mortgage costs also rose for buyers and affording a home, a signifier of middle class status, became a top concern for voters under 40.

The White House maintains that the executive orders in March, in addition to the plans to purchase mortgage-backed securities, show that the president is focused on housing issues.

The report says that various regulations on home construction, which it calls “the bureaucrat tax,” add more than $100,000 in costs to building. That cost includes changing the building codes over the past decade, compliance costs and zoning approval fees, among other expenses.

By the report’s estimates, a reduction in those regulatory costs could help spur construction of as many as 13.2 million homes. That could add on average 1.3 percentage points to annual economic growth over the next decade and support 2 million manufacturing and construction jobs, it argues.

Trump could decide to make federal funding to state and local governments contingent on reducing some of the regulations, according to an administration official, who insisted on anonymity to discuss the report before its release.

The report also attacks the green energy housing standards introduced during the Biden administration as a factor in increasing construction costs. Those steps gave preferences for more efficient air conditioning units and water heaters as well as higher standards for the related duct work.

But getting rid of some of those requirements could increase other costs for homeowners over the long run, such as utility bills.

The report relies on a 2021 analysis by National Association of Home Builders that says the standards could add up to $31,000 to the price of a new home, while it could take as many as 90 years for a homebuyer “to realize a payback on the added cost of the home.”

It is not clear how much savings would occur from rolling back Biden-era housing standards because of existing legal challenges regarding their enforcement and different practices by states. In March, a federal judge in Texas agreed with 15 states led by Republicans that said the standards for federally backed housing were unlawful.

WASHINGTON (AP) — A federal judge dismissed President Donald Trump’s $10 billion defamation lawsuit against the Wall Street Journal and Rupert Murdoch on Monday over a story on his ties to Jeffrey Epstein.

U.S. District Judge Darrin P. Gayles in Florida wrote in the order that Trump had failed to make the argument that the article was published with the intent to be malicious, but gave the president a chance to file an amended complaint.

In a social media post several hours after the ruling, Trump said the decision “is not a termination” but rather a “suggested re-filing” of his “powerful case,” which Trump said would be done “on or before April 27th.”

Trump filed the lawsuit in July, following up on a promise to sue the paper almost immediately after it put a new spotlight on his well-documented relationship with Epstein by publishing an article that described a sexually suggestive letter that the newspaper said bore Trump’s signature and was included in a 2003 album compiled for Epstein’s 50th birthday.

The letter was subsequently released publicly by Congresswhich subpoenaed the records from Epstein’s estate. Trump denied writing it, calling the story “false, malicious, and defamatory.”

Attorneys for the newspaper and Murdoch had asked Gayles to rule that the article’s statements were true and therefore couldn’t be defamatory, but the judge wrote that “whether President Trump was the author of the Letter or Epstein’s friend are questions of fact that cannot be determined at this stage of the litigation,” Gayles wrote.

The ruling marks yet another blow in the Trump administration’s efforts to manage fallout over its release of the Epstein files and the president’s attempts to use the legal system to chill reporting he finds critical of him.

The White House did not immediately respond to a request for comment. A spokesperson for Dow Jones, which publishes the Journal, said the organization was “pleased” with the judge’s decision, adding, “We stand behind the reliability, rigor and accuracy of The Wall Street Journal’s reporting.”

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Meg Kinnard can be reached at http://x.com/MegKinnardAP