Reuters US Domestic News Summary

Following is a summary of current US domestic news briefs.

Lawyer for Fed's Cook, targeted by Trump, says there are no grounds for dismissal

Federal Reserve Governor Lisa Cook's lawyer on Wednesday offered a detailed rebuttal to the accusations of mortgage fraud that U.S. President Donald Trump asserts provide cause to fire her, saying they rely "on untried and unproven allegations of criminal wrongdoing." "Governor Cook has never committed mortgage fraud or any intentional wrongdoing, and there is no legally cognizable cause for removing her from the Federal Reserve Board," Cook's attorney Abbe David Lowell said in a letter ​to the White House.

Tate brothers to remain in US jail pending judge's ruling

Social media influencers Andrew and Tristan Tate will remain in a Miami jail for now as they contest extradition to Britain, where they are wanted on rape charges. At a hearing in Miami federal court on Thursday, Magistrate Judge Lauren Louis declined to rule immediately on the Tate brothers' ​request for bail, meaning they will remain in federal custody until she issues her ruling.

US judge refuses to force extradition of jailed ICE agent from Texas to Minnesota

A federal judge on Wednesday denied a request by Minnesota to force Texas Governor ‌Greg Abbott to immediately extradite a jailed ​U.S. immigration agent facing assault charges for shooting a Venezuelan man in the leg during last winter's deportation surge in Minneapolis. The ruling clears the way for Christian Castro, the U.S. Immigration and Customs Enforcement officer arrested by Texas Rangers acting on a Minnesota court warrant, to be freed from custody on Thursday. That's when a 90-day detention limit for someone awaiting extradition under Texas law is due to expire.

Exclusive-Pentagon's NATO review preparing troop options for Hegseth by November 6

A Pentagon review of U.S. troop deployments in Europe will create at least four sets of options for Defense Secretary Pete Hegseth by November 6, well ahead of a December deadline for the review's completion, according to a document seen by Reuters. NATO allies worry that the six-month review, announced in June, will lead to large-scale cuts to the roughly 80,000 U.S. forces across Europe and punish countries that President Donald Trump believes failed to support the U.S.-Israeli war against Iran.

Marine One helicopter crew failed to reach air traffic control before safety incident, report says

The crew of a military helicopter carrying President Donald Trump that came too close to a passenger jet on August 4 failed to reach air traffic controllers before departing, the National Transportation Safety Board ‌said on Thursday. The incident involving a plane departing Reagan Washington National Airport raised questions about why the passenger airplane was allowed to depart while Marine One was nearby, a time when commercial traffic is typically halted.

SK Hynix to start AI chip output in Indiana in 2029, sees memory shortage through 2030

South Korean chipmaker SK Hynix said on Thursday it plans to begin volume production of its next-generation HBM4E chips at its Indiana facility in the third quarter of 2029, as its chief executive said the company expects a current memory chip shortage to persist through the end of 2030. Chief Executive Kwak Noh-Jung expects the site to eventually reach annual capacity of hundreds of thousands of wafers.

US jobless claims dip in latest week; goods trade deficit widens in July

The number of Americans seeking unemployment benefits for the first time fell for a second week while the overall number of people on jobless relief rolls slid to the lowest level in a month, signaling a stable labor market that should give the Federal Reserve leeway to focus on containing inflation. Meanwhile, the U.S. trade deficit in goods, which President Donald Trump is trying to reduce through his aggressive use of tariffs on imported goods, was the widest in 16 months in July as exports fell for a third straight month and capital goods imports surged on the back of the artificial intelligence build-out. The wider goods trade gap last month puts trade on track to be a net drag on U.S. gross domestic product growth for a fourth straight quarter.

US widens lettuce-related cyclosporiasis probe to 20 states

U.S. health authorities have widened their probe into a cyclosporiasis outbreak tied to iceberg lettuce from central Mexico after detecting cases in three additional states, ‌raising the total to 20 states, the FDA and CDC said on Thursday. The outbreak, linked to iceberg lettuce served at Taco Bell restaurants and sourced from Taylor Farms' operations in Mexico, has grown to 11,458 cases, including 495 hospitalizations.

Trump renames Lake Ontario as 'Lake America' amid Canada trade war

U.S. President Donald Trump renamed Lake Ontario "Lake America" on Thursday, escalating a feud with Canada that has already spawned tariffs on tens of billions of dollars in cross-border trade. Trump's executive order on Lake Ontario, one of the five Great Lakes of North America, applies to U.S. federal usage about the lake, and does not govern what Canada, international bodies or other organizations call the lake.

States, voting rights groups renew challenges to Trump plans to restrict mail-in voting

Democratic-led states and voting rights groups on Wednesday renewed their ‌efforts to block the U.S. Postal Service from imposing new requirements on mail-in voting before ballots go out for the November congressional elections, as ordered by President Donald Trump. Democratic attorneys general from 23 states and the District of Columbia, along with Pennsylvania's governor, filed a new lawsuit in Boston federal court two days after the U.S. Supreme Court lifted an earlier injunction they had won blocking Trump's order on the grounds that they sued too soon.

US officials weigh plan to shield farmers from expansion of refinery biofuel waivers, sources say

President Donald Trump and top U.S. officials discussed on Wednesday a plan to shield the Farm Belt from an expected expansion of waivers of biofuel laws, which his administration is considering as a way to lower gasoline prices during the Iran war, two people familiar with the meeting said. The administration is considering a plan that would increase biofuel quotas for the 2027 calendar year by roughly 500 million gallons to offset any damage caused by the soon-to-be-announced exemptions for smaller refineries, two separate sources told Reuters. The administration has not made a final decision on the additions, the sources said.

Mail-in voting restrictions now in effect, US Postal Service says

The U.S. Postal Service said on Thursday that new requirements for mail-in voting are now in effect as court challenges continued.

Judge dismisses lawsuit by Elon Musk's X challenging New York hate speech law

A U.S. judge on Wednesday dismissed a lawsuit by Elon Musk's X seeking to void a New York state law requiring social media companies to disclose how they monitor hate speech, extremism, harassment, foreign political interference and disinformation. U.S. District Judge John Cronan in Manhattan rejected X's argument that the Stop Hiding Hate Act violated the U.S. Constitution's First Amendment by exposing it to lawsuits and big fines unless it disclosed "highly sensitive and controversial speech" that the state found objectionable.

Court approves Bank of America's $72.5 million settlement with Epstein accusers

A federal judge said on Thursday he would grant final approval to Bank of America's $72.5 million class-action settlement with women who accused the second-largest U.S. bank of facilitating their sexual abuse by the late ⁠financier Jeffrey Epstein. U.S. District Judge Jed Rakoff ​said in Manhattan at a hearing on Thursday that the settlement would provide many victims with "substantial" compensation and "justice, even if partial." He rejected an argument by three accusers that the deal was overbroad because it required them to give ⁠up related claims against the bank and other potential defendants without compensation.

US judge blocks Trump overhaul of funding for fair housing groups

A federal judge on Wednesday blocked President Donald Trump's administration from restructuring a federal grant program to redirect money away from over 100 non-profit organizations that had historically received funding to help prevent and investigate housing discrimination. U.S. District Judge Myong Joun in Boston ruled the U.S. Department of Housing and Urban Development had failed to provide a reasoned explanation for its decision to implement "sweeping changes" to a decades-old grant program run by the agency designed to combat housing discrimination.

Guterres says he expects UN budget contribution from US very soon

United Nations Secretary-General Antonio Guterres said on Thursday he expects a new contribution of hundreds of millions of dollars the United States owes to the U.N. budget very soon. Reuters reported last week that the Trump administration has informed the U.S. Congress of its intention to pay $725 million of dues it owes to the U.N. Asked when that payment was expected, Guterres told reporters ⁠that according to information received by the U.N., "this will be very soon."

FAA moves to fire two controllers who left work before fatal LaGuardia collision, sources say

The U.S. Federal Aviation Administration is moving to fire two air traffic controllers at New York's LaGuardia airport who are believed to have left early before an Air Canada plane collided with a fire truck on March 22, killing both pilots, sources told Reuters. The crash renewed scrutiny of chronic staffing shortages and working practices in U.S. air traffic control, with investigators examining whether adequate staffing was in place when the accident occurred.

Trump to meet refiners, fuel retailers as Iran war boosts gas prices ahead of midterms, sources say

President Donald Trump is expected to meet with U.S. refiners and fuel retailers next week to highlight efforts to lower gasoline prices, as his administration seeks to ease pressure on consumers from the Iran war ahead of November's congressional midterm elections, people familiar with the matter said. The ​political stakes are high for Trump and his fellow Republicans, who are trying to defend narrow majorities in Congress in November. The war with Iran has become increasingly unpopular, while higher gasoline prices threaten to undercut Trump's 2024 campaign promise to bring down the cost of living. Reuters/Ipsos polling shows Trump's approval rating has fallen to 33%, with just 31% of Americans approving of the conflict.

US states sue to block new conditions for family-planning grants

A group of mostly Democratic-led U.S. states filed a lawsuit on Thursday seeking to block President Donald Trump's administration from stripping funding for family planning services for low-income and uninsured people from states and providers that oppose the Republican president's agenda. The lawsuit by officials from 23 states, filed in Maryland ⁠federal court, claims that new conditions on what is known as Title X funding will unlawfully penalize states and providers that refuse to discourage contraception or provide gender-affirming care to transgender people.

Lindsay Clancy's 'mind was gone' when she killed her children, her lawyer says at trial's end

Lindsay Clancy's lawyer urged jurors at the end of her murder trial on Thursday to conclude that she was in the throes of postpartum psychosis when the Massachusetts woman killed her three young children in 2023, an act a prosecutor said she intentionally carried out after sending her husband out on an errand. Clancy, 36, admits that she killed her three children by strangling them with exercise bands in the basement of her home in the Boston suburb of Duxbury in January 2023. She then cut herself with a knife and jumped from a second-story window in a failed attempt to end her own life that left her paralyzed.

Kennedy advisers recommend doubling US autism spending on care, family support

A U.S. advisory committee on autism adopted a new strategic plan on Thursday that calls on federal agencies to ⁠nearly double investment ​in research and initiatives focusing on medical care, housing, aging, and other priorities to support people with the condition and their families. The Interagency Autism Coordinating Committee, an advisory panel appointed by Health Secretary Robert F. Kennedy Jr. this year to reshape federal priorities in autism, recommended boosting investment by the National Institutes of Health, U.S. Centers for Disease Control and Prevention, and other agencies to roughly $760 million annually from $390.4 million to address a sweeping array of issues impacting people with autism and their families.

Corporate political donations shatter record at $646 million so far for US midterms

Companies donated a record $646 million to U.S. political campaigns in the 18 months through June, 40% more than the total spent during the entire 2024 presidential election cycle, according to new data from watchdog group Public Citizen. The spenders driving the surge include manufacturing conglomerate Koch Inc. and new entrants such as online sports betting companies, which poured roughly $76 million into the November 3 midterm elections for candidates in both parties. Big Tobacco and cannabis companies also donated heavily, largely to Republican candidates.

Meta agrees to pay $18 billion to settle US lawsuits over children's social media addiction

Meta Platforms will pay up to $18 billion over the next decade and strictly limit how teenagers use Facebook and Instagram under an agreement with nearly all U.S. states to resolve claims it designed those social media platforms to addict children. The settlements announced on Wednesday end a federal trial over allegations Meta's products harmed children and the company misled the public about their safety. Four of the states — California, Colorado, Kentucky and New Jersey — were expected to seek close to $200 billion in civil penalties.

US judge again blocks Texas law targeting drag acts as unconstitutional

A federal ⁠judge on Tuesday again blocked a Texas law restricting public drag performances, ruling for a second time that the legislation passed in the heavily Republican state violated the U.S. Constitution's free speech protections. "For those who find such activities as described in this case offensive, the solution is relatively simple ... just don't go," U.S. District Judge David Hittner wrote in his opinion — the second time the Texas-based judge has found the measure in violation of the Constitution's First Amendment.

US judge weighs challenge to restore Trump's name to Kennedy Center

An attorney for a U.S. lawmaker on Thursday urged a federal judge to again block the John F. Kennedy Center for the Performing Arts in Washington from inscribing President Donald Trump’s name on the facade. The hearing before U.S. District Judge Christopher Cooper ⁠marks the second time the court has been asked to stop the Kennedy Center from putting Trump’s name on the building that Congress named as a "living memorial" to Kennedy, the 35th U.S. president, who was assassinated in 1963.

Trial for accused ⁠mastermind of 9/11 attacks set for June 2028

A U.S. Air Force judge on Wednesday ordered Khalid Sheikh Mohammed, the accused mastermind of the September 11, 2001, attacks on the United States, and three co-defendants to go on trial before a military tribunal in June 2028. The trial-scheduling order entered by Air Force Lieutenant Colonel Michael Schrama marked the latest milestone in a military prosecution beset by two decades of legal deadlock surrounding the four detainees held in Guantanamo Bay, Cuba.

Analysis-Bessent, Warsh diverge on who should set the price of money

Treasury Secretary Scott Bessent and Federal Reserve Chairman Kevin Warsh appear at odds over a question at the heart of U.S. financial policy. How hands-off can policymakers be when it comes to setting a price for money? Warsh has advocated retreating from some of the central bank's longstanding communication policies in favor of letting markets do the heavy lifting, while Bessent has deployed a number of tools, some of them unusual, in the name of aiding market function.

ICE agent freed from Texas jail in defiance of Minnesota extradition request

A U.S. immigration agent was freed from a Texas jail on Thursday hours after a federal judge refused to order his extradition to Minnesota to face assault charges for shooting ‌an unarmed Venezuelan man during last winter's deportation surge in Minneapolis. Christian Castro, the Immigration and Customs Enforcement officer wanted by Minnesota authorities, was released at about 7 ‌a.m. local time from the lockup where he had been held since his May 29 arrest in the Gulf Coast border city of Brownsville, according to a Cameron County Sheriff's Department spokesperson.

US FDA approves updated COVID vaccines for 2026-27 season

The U.S. Food and Drug Administration approved Moderna, Novavax-Sanofi and Pfizer-BioNTech's updated COVID vaccines, the companies said on Thursday, after an advisory panel recommended that the shots should target the ​dominant XFG variant. Four COVID shots had been approved for use in the United States: Moderna's mNEXSPIKE and Spikevax, Pfizer-BioNTech's, Comirnaty — all three mRNA-based vaccines — and Novavax-Sanofi's, protein-based shot that takes longer to manufacture.