Wednesday July 2nd, 2025
House GOP Fractures, Musk’s America Party Gimmick, Trump vs. DOGE
The fallout from Trump’s monster bill gets partisan, petty, and predictably ugly. Plus: Musk threatens a party, Trump threatens Musk, Powell blames tariffs, and 14 million lives hang in the balance.
Today in one sentence: Trump’s $3.3 trillion bill staggers toward the House amid GOP infighting and Medicaid backlash, Musk’s ‘America Party’ threat spurs a pro-Trump PAC counterstrike, Trump doubles down on Musk-bashing with subsidy threats, states plot their own AI rules after Senate ditches preemption, the Fed blames tariffs for stuck rates and market jitters, and USAID’s destruction has global health reeling.
1. House GOP Splinters Over Trump Bill
Divisions among House Republicans deepen as Trump’s $3.3 trillion tax-and-slash bill lurches toward a floor vote. Rural and moderate members rage over Medicaid and SNAP cuts despite carveouts, while the conservative Freedom Caucus wants even more red meat. Speaker Mike Johnson faces a headache herding votes as Wall Street jitters and rural hospital lobbyists ramp up the pressure (Reuters, Chicago Tribune, Yahoo Finance). Unexpected ripple: Hospital bond markets see a selloff on bankruptcy fears.
2. Pro-Trump PAC Targets Musk’s America Party
Elon Musk’s tantrum over the ‘Porky Pig Party’ bill gets a cold shoulder from GOP insiders and donors, as a new pro-Trump super PAC launches to kneecap any real America Party threat. Republican strategists dismiss Musk’s influence, pointing to past failed endorsements (Politico, Business Insider, Sky News Australia). Ripple: Far-right influencers split between MAGA loyalty and Musk fanboyism, fueling new online feuds.
3. Trump Threatens Musk With Subsidy Crackdown
Trump keeps the clown show rolling, vowing to ‘take a look’ at deporting Musk and siccing the DOJ (or DOGE?) on Tesla, SpaceX, and Starlink subsidies. No formal legal action emerges—yet—but even the threat rattles Tesla’s stock and shakes up defense contract speculators (CBS News, Axios, ABC News, Washington Post). Ripple: Tech CEOs quietly ask DOJ for clarification on political retribution limits.
4. States Prep New AI Laws After Senate Flip
With the Senate axing the federal ban on state AI rules, California and New York legislators scramble to introduce new consumer and labor protections. Big Tech scrambles the lobbyists, terrified of a regulatory patchwork. Civil liberties groups gear up for a fresh round of lawsuits (AP, Time, TechCrunch). Ripple: Texas signals it will push for ‘anti-woke’ AI mandates, setting up a coast-vs-heartland culture brawl.
5. Fed Blames Tariffs, Wall Street Gets the Shakes
Powell doubles down: No rate cuts because Trump’s tariffs are juicing inflation forecasts. Bond yields jump and equities wobble as Wall Street digests the reality that the White House is calling the Fed’s shots (Bloomberg, WSJ, Investopedia, Forbes). Unexpected: Mortgage lenders pull promotional offers, bracing for a mini-slowdown in summer home sales.
Notables
Vaccine Cuts Blow Up Globally
With USAID and Gavi gutted, global health orgs warn of an explosion in child mortality, mass migration, and instability across Africa and South Asia (CNN, Reuters, Washington Post).
Rubio Shrugs Off 14 Million Death Warning
Secretary Rubio waves off dire projections, insisting the ‘America First’ aid model is more ‘strategic’—but Congressional Dems plot hearings and UN officials whisper sanctions (CNN).
Crypto Bros Scent Blood (60% chance)
DOGE’s name-dropping in Trump’s Musk rant pumps meme coin prices as speculators bet on more chaos—and maybe a DOJ probe?
Same circus, new disasters. See you in the fallout shelter.