☕ Trump's D.C. crackdown

Good morning!

AOL has pulled the plug on dial-up.

My first reaction: I can’t believe it’s still a thing. My second reaction: beeps, screeches and the sound of static.

I’ve got 30 seconds

Some headlines from this morning:

• Israeli forces killed five journalists from international news service Al Jazeera in Gaza overnight. The group included reporters Anas al-Sharif and Mohammed Qreiqeh, and camera operators Ibrahim Zaher, Mohammed Noufal, and Moamen Aliwa. Both Al Jazeera and the Israeli Defense Forces (IDF) have confirmed the killings. International authorities have denied allegations by the IDF that al-Sharif was a member of Hamas. Under international law, it is a war crime to deliberately target journalists.

• A meeting between President Trump and Russian President Vladimir Putin will be held this week, as the White House seeks to end Russia’s war in Ukraine. The summit, to be held in Alaska, will mark the first time since 2007 (outside of meetings at the United Nations in New York) that Putin has been invited to the U.S. Shortly after the meeting was announced, a coalition of European leaders released a joint statement insisting “the path to peace in Ukraine cannot be decided without Ukraine”, requesting Ukraine’s President Volodymyr Zelenskyy be included in peace talks. Responding to the statement, the White House said President Trump was open to including Zelenskyy in the talks, but did not extend a formal invitation. Posting on Telegram on Sunday, Zelenskyy said any decisions made without a Ukrainian representative were “dead decisions” and would “never work”.

• Prime Minister Anthony Albanese announced Australia will recognize the state of Palestine at the UN General Assembly in September. The decision follows similar moves by Canada, the UK, and France to formally acknowledge Palestinian statehood and independence. Albanese said "until Israeli and Palestinian statehood is permanent, peace can only be temporary," while calling for Hamas to have "no role" in a future Palestinian state. Shadow Defense Minister Angus Taylor criticized the announcement, saying "the pre-conditions necessary for a lasting peace are not in place."

• A federal judge will hear evidence starting Monday in California Governor Gavin Newsom's lawsuit demanding President Trump return control of the California National Guard. Trump federalized the state's National Guard in June after protests erupted against federal immigration enforcement in Los Angeles. Newsom's suit claims the president violated the Posse Comitatus Act, which prohibits using military forces for domestic law enforcement. Only 250 of the original 4,000 deployed troops remain in LA, primarily guarding federal buildings.

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The Trump administration has struck a deal allowing U.S. chip giants NVIDIA and AMD to resume sales to China in exchange for 15% of profits, marking a significant shift in the trade war between the world's two largest economies. Here's what you need to know.

What happened?

Both companies will share 15% of all profits from Chinese semiconductor sales with the U.S. government under the new arrangement announced this week. The Commerce Department began issuing export licenses last week after months of restrictions.

The deal was reportedly finalized during a Wednesday White House meeting between President Trump and NVIDIA CEO Jensen Huang, with AMD agreeing to identical terms.

What are semiconductors?

Semiconductors are essential for AI development, and the U.S. currently leads global chip production. Controlling access to these chips has become a key weapon in America's competition with China for AI supremacy.

The agreement represents a compromise between national security concerns and economic interests, allowing American companies to access China's massive market while ensuring the government benefits directly.

The restricted chips

The approved chips - NVIDIA's H20 and AMD's MI308 - are specifically designed for export to China with significantly reduced capabilities compared to flagship models.

"We don't sell them our best stuff, not our second-best stuff, not even our third best," Commerce Secretary Howard Lutnik said.

These chips were developed in 2023 to comply with export controls while still allowing sales to China, but were banned entirely in April amid escalating trade tensions.

What’s next

The companies can now resume sales immediately, but remain prohibited from selling their most advanced semiconductors to China. The profit-sharing arrangement sets a new precedent for how the U.S. manages technology exports during the ongoing trade dispute.

National security experts continue to warn that even chips with restricted capacity could enhance China's AI capabilities and have military applications.

I’ve got 2 minutes

FBI agents are now patrolling Washington D.C. streets following President Trump's threat to federalize law enforcement if the city doesn't address crime concerns. The deployment comes after a Department of Government Efficiency employee was injured in a carjacking, sparking renewed presidential criticism of the capital. Here's what you need to know.

What happened?

The FBI confirmed an "increased federal law enforcement presence" in the Capitol on Sunday night, with 120 agents working overnight shifts alongside local police for at least one week.

The deployment followed escalating threats from Trump, who posted on Truth Social telling homeless people to leave the city "IMMEDIATELY" and warning "There will be no 'MR. NICE GUY.'"

Trump may announce National Guard deployment at a press conference today, though D.C. Mayor Muriel Bowser said city officials haven't been notified of any such plans.

The catalyst

The federal response was triggered by an attack on Edward Coristine, a 19-year-old DOGE employee who was beaten during an alleged carjacking two weeks ago.

Trump posted a picture of the bloodied employee and threatened to take "federal control of the city, and run this city how it should be run."

"Make our Capital safer and more beautiful than it ever was before," Trump wrote on Truth Social Sunday.

Trump’s D.C. focus

This marks an escalation of Trump's long-standing criticism of the capital's governance. During his first term, he vowed to "restore and rebuild Washington, D.C. into the 'crown jewel of our Nation.'"

Trump has already signed a "D.C. Safe and Beautiful" executive order calling for increased arrests of juvenile offenders and more federal forces on city streets.

FBI agents will conduct traffic stops and patrols alongside other agencies, since the FBI typically lacks authority for routine traffic enforcement.

According to the Washington Post, the deployment represents an unusual use of federal investigative resources for local policing functions.

D.C. crime

Despite Trump's concerns, D.C. crime statistics show significant improvement since 2023 peaks.

Homicides are down nearly 30% compared to last year, while burglaries and robberies have dropped by double digits, the Washington Post reported.

Juvenile arrests are also down 20% following stricter curfew laws implemented this summer.

Potential challenge

The federal deployment sets up a potential confrontation between Trump and local D.C. officials over control of law enforcement in the nation's capital.

Constitutional experts note that while the president has broad authority over federal agencies, local policing traditionally remains under city control.

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