Reuters US Domestic News Summary

Following is a summary of current US domestic news briefs.

Two US-bound vessels apparently compromised by hackers, US officials say

US Coast Guard and FBI personnel boarded two commercial vessels bound for the United States in the Gulf of Mexico last month after indications that hackers had broken into their computer networks, the agencies said on Thursday. The unusual operation, carried out on August 21 and August 24 aboard two foreign-flagged ships, comes as US authorities grapple with a series of cyber incidents that media reports ​have linked to Iran since the outbreak of conflict between Washington and Tehran.

US judge strikes down Education Department's anti-DEI grant policy

A federal judge on Thursday struck down a policy that was adopted early in US President Donald Trump's administration that required the US Department of Education to terminate millions of dollars in grants funding diversity, equity, ​and inclusion initiatives. US District Judge Angel Kelley in Boston ruled in favor of eight Democratic-led states that had continued to challenge the Education Department policy even after the US Supreme Court in April 2025 allowed the administration ‌to proceed with terminating the teacher ​training grants.

Pentagon to proceed with controversial testosterone testing after pause

The Pentagon is reinstituting a mandatory testing program for testosterone deficiency among US service members age 30 and older, a spokesperson said on Thursday, bringing back a program that many medical experts have described as unnecessary and potentially harmful. US Defense Secretary Pete Hegseth, who has promoted the use of testosterone to improve military readiness, first announced the screening mandate in July.

Explainer-What's next for Trump's aluminum smelter project in Oklahoma?

US President Donald Trump's goal of building a large aluminum smelter in Oklahoma passed a major hurdle in late August when Republican voters nominated a candidate for governor who supports its construction after an unusually tough primary battle. The project must now overcome significant opposition in the small rural community of Inola, where many residents are working to block plans by Emirates Global Aluminium and Century Aluminum to build the $4 billion smelter.

Democratic senator calls for US diplomats to help guide Europe troop review

A key Senate Democrat has asked Secretary of State Marco Rubio to ensure that U.S. diplomats are involved in a Pentagon-led review of America's military presence in ‌Europe that has alarmed NATO allies. In a letter addressed to Rubio, who is also the national security advisor, Senator Jeanne Shaheen, the top Democrat on the Senate Foreign Relations Committee, wrote that diplomats, including U.S. ambassadors in potentially affected countries, are being kept out of the loop. The letter was first shared with Reuters.

Exclusive-US weighs allowing most pharma licensing deals with China, sources say

The US is working on rules for pharmaceutical companies investing in China that would likely preserve their ability to strike most licensing deals for Chinese drugs, according to three people who have been briefed on the process. That would mark a departure from the Trump administration's tightening of business with China for other industries under new national security legislation, and would be looser than restrictions sought by some lawmakers.

As Canadian tariffs bite, Republicans search for a winning message

High gas prices and the rising cost of living had already made affordability a defining issue in this year’s midterm elections. Then President Donald Trump escalated his trade war with Canada. Now, Republican candidates in northern border states most affected by the tariffs are trying to strike a balance between appealing to Trump’s loyal base and reaching independent voters that polls show have soured on his handling of the economy and his fight with Canada.

White House withdraws former Delta pilot for international aviation post

The White House on Thursday withdrew its nomination of former Delta Air Lines pilot Jeffrey Anderson to serve as U.S. ambassador to the International Civil Aviation Organization after being opposed by a major airline pilots' union. The administration of President Donald ‌Trump nominated Anderson in July 2025 but the pilot never had a hearing to confirm his appointment.

US Health Secretary Kennedy Jr. adds eight new members to key health committee

US Health Secretary Robert F. Kennedy Jr. on Thursday named eight new members to the advisory panel that decides which preventive medical care, such as routine cancer screening or HIV prevention, should be provided at no cost under health insurance plans. The Preventive Services Task Force, which typically holds three annual meetings and has 16 members, last met a year ago.

Judge orders Trump to give 30 days notice before any steps to demolish Kennedy Center

A federal judge ordered President Donald Trump's administration on Thursday to provide at least 30 days' ‌notice before taking any steps to demolish the Kennedy Center, the landmark performing arts venue that has become a flashpoint in his efforts to reshape the U.S. capital. U.S. District Judge Christopher Cooper issued the order after lawyers for a Democratic congresswoman who is suing to keep the venue open and Trump's name off its facade submitted new evidence citing the Republican president's comments on Wednesday referring to demolishing the Kennedy Center.

White House drops Schroyer nomination for ICE director

The White House withdrew on Thursday its nomination of former Oklahoma state trooper Lance Schroyer for Immigration and Customs Enforcement director, issuing a brief statement that did not provide a reason. ICE, which has been at the forefront of President Donald Trump's immigration crackdown, has not had a Senate-confirmed director since 2017.

US Democrats look to stop Trump's Saudi nuclear deal

US House of Representatives Democrats raised concerns on Thursday about President Donald Trump's civil nuclear agreement with Saudi Arabia, and said they had introduced a resolution of disapproval seeking to block the deal from coming into force. Trump sent the proposed agreement to Congress in August, opening a 90-day window for lawmakers' review and giving them an opportunity to try to pass a resolution of disapproval.

Factbox-What will Trump and Xi discuss in Washington next week?

U.S. President Donald Trump will welcome Chinese leader Xi Jinping next week for their second meeting this year, as the two leaders seek stability in a relationship under pressure over issues ranging from trade to Taiwan and Iran as well as global worries about artificial intelligence. Xi arrives for his first White House visit in a decade at the helm of an economy on track to post a $1 trillion trade surplus for a second straight year. Trump, mired in the Iran war and with low approval ratings, is looking for trade wins he can tout to Americans unhappy with rising prices.

US ⁠clears way for $24.3 billion fighter jet sale ​to Saudi Arabia

The US Department of State said on Thursday it had approved the potential sale of Lockheed Martin's F-35 Lightning II fighter jets to Saudi Arabia, as the kingdom is drawn deeper into war ⁠in the Middle East. A sale would mark a significant policy shift from the US, potentially altering the balance of military power in the Middle East and testing Washington's definition of maintaining its ally Israel's "qualitative military edge."

FAA sees $100 million cost from tariffs on US air traffic control modernization plan

The head of the U.S. Federal Aviation Administration said the agency expects about a $100 million cost from tariffs on the government's more than $12.5 billion air traffic control modernization plan. U.S. Representative Rick Larsen, a Washington Democrat who is ranking member of the committee overseeing the FAA, told Reuters that FAA Administrator Bryan Bedford informed lawmakers the $100 million tariff cost was largely due to air traffic radar systems they are purchasing. Larsen criticized the tariffs for increasing the government's costs.

Screwworm infests US horse before port reopens to Mexican livestock

The U.S. confirmed a case of New World screwworm in a horse in New Mexico on Thursday, as the ⁠federal government prepared to resume imports of Mexican livestock into the state after blocking trade in an attempt to keep out the flesh-eating parasite. Screwworm infested a horse in Grant County, New Mexico, in the southwest corner of the state near the Mexican border, according to the U.S. Department of Agriculture's website. It was the state's second confirmed case since screwworm entered the U.S. from Mexico in June.

'I'm not a doomer': US Senator Mark Warner makes the case for acting fast on AI guardrails

The U.S. Congress should pass legislation by the year-end setting AI safety standards, as an immediate first step toward broad guardrails for an industry whose rapid development has alarmed tech CEOs and the public alike, U.S. Senator Mark Warner told Reuters in an interview. Warner, vice chairman of the Senate Intelligence Committee and a leading congressional voice on technology and national ​security, dismissed much of the doomsday talk surrounding AI but said the time is ripe politically for legislative action, with worries over AI "now at tipping point for Americans."

Robust US retail sales underscore economy's resilience, inflation pressures building

U.S. retail sales rebounded sharply in August as households boosted purchases of a range of goods while also spending more at restaurants and bars, reinforcing the economy's resilience even as consumers grow more anxious about high inflation. The stronger-than-expected report from the Commerce Department on Wednesday prompted economists to upgrade their gross domestic product growth estimates for the third quarter. Inflation jitters were underscored by news of a surge in import prices last month amid ⁠strong increases in the costs of capital and consumer goods.

Not just Nvidia: these power and cooling firms are riding the trillion-dollar data centre boom

While Nvidia is synonymous with the AI boom, a lesser-known group of power and cooling equipment suppliers is cashing in on a global data centre construction spree as developers race to avoid infrastructure bottlenecks. Energy-hungry data centres have triggered a surge in demand for equipment ranging from transformers to advanced cooling systems, creating winners across Asia's supply chain, though earlier stock-price gains have moderated.

Man who assaulted US lawmaker Ilhan Omar sentenced to 14 months in prison

A Minnesota man who squirted vinegar on Democratic U.S. Representative Ilhan Omar was sentenced to one year and two months in prison on Thursday after pleading guilty to assaulting a federal official. Anthony James Kazmierczak pleaded guilty in May and admitted to attacking Omar because he disagreed with her progressive political views. He was sentenced by U.S. District Judge Joan Ericksen at a hearing ⁠in Minneapolis federal ​court on Thursday.

US regulators urge more research on testosterone therapy for women as experts debate benefits, risks

US health regulators on Thursday called for more data on testosterone therapies for women, with FDA officials urging manufacturers to conduct studies that could support future approvals of female-specific products. US Food and Drug Administration officials said companies could potentially use data from testosterone products approved overseas, but would still need to satisfy US standards.

Trump-linked 'pop-up' PACs blitz Ohio with ads against Brown in costly Senate race

Republican groups have poured $14 million into advertising in Ohio over the past week to bolster Senator Jon Husted, as recent polls show the Republican trailing Democrat Sherrod Brown in a race that could help determine control of the US Senate. The spending surge is driven by super PACs linked to President Donald Trump, billionaire Elon Musk, the Koch political network and Senate Republican leadership ahead of the November 3 special election. The winner will serve out the remaining two years of the term vacated by JD Vance when he became vice president in 2025.

Republican candidate in Florida warns Trump his immigration agenda has 'gone too far'

A Latina Republican lawmaker facing a competitive reelection race in Florida warned US President Donald Trump on Thursday that his signature immigration enforcement agenda had overreached. "Mr. President, some of your immigration enforcement efforts have gone too far,” U.S. Representative Maria Elvira Salazar said in a new ad. “The same Hispanics who helped you get to the White House in 2024 feel betrayed today.”

US plans Medicaid most-favored-nation pricing ⁠for some drugs in all states, Semafor reports

The Donald Trump administration is set to announce on Friday that all 50 states would see most-favored-nation pricing for certain drugs in Medicaid programs, Semafor reported, citing administration plans. President Trump will host the governors of South Dakota, Mississippi and Arkansas in the Oval Office "to tout work on lower drug prices," Semafor said.

Exclusive-Pennsylvania asks for CDC measles help amid Kennedy dispute

The Pennsylvania health department has requested emergency support from the US CDC as it grapples with one of the country's largest and most deadly measles outbreaks, though with certain terms, according to a document reviewed by Reuters on Thursday. The request comes on condition that the federal agency recognize four measles-associated ⁠deaths reported by the state, raising the stakes in a dispute with the Trump administration.

Amazon, Walmart chatbots attract senator ire over 'made in USA' label snags

Two US senators have called on the Federal Trade Commission to investigate ⁠Amazon and Walmart, claiming that their AI shopping chatbots may suppress "made in the USA" products and fail to flag fraudulently labeled goods. In a letter sent to the FTC, senators Tammy Baldwin and Rick Scott said Amazon's Alexa for Shopping and Walmart's Sparky AI shopping assistants could be undermining efforts to promote American manufacturing and misleading consumers.

US Senate panel votes to advance Trump pick for consumer watchdog

A U.S. Senate panel on Thursday voted along party lines to advance President Donald Trump's nomination of Capital One executive Brian Johnson to lead the Consumer Financial Protection Bureau, setting up a vote by the full Senate. The Republican-led Senate Banking Committee voted 13-11 to approve Johnson's nomination over Democratic objections that he is too close to the industry he would be expected to oversee and that the White House put forward his name after initially seeking to destroy the CFPB outright.

Record US diesel prices squeeze farmers; food prices may rise

In northeast Missouri, Addie Yoder, a corn, soybean and cattle farmer, runs two combines, three semi-trucks and several tractors from mid-September to late October to harvest and transport her crops. With ‌diesel prices at record highs and just one combine requiring 300 gallons of the fuel, the best she can do is try ‌to curb other expenses, she said.

ICE agent charged with assault, lying about shooting, jailed in Minnesota

A federal immigration officer wanted on assault charges for shooting and wounding a Venezuelan man in Minneapolis was arrested there on Wednesday, eight months after a confrontation that became a flashpoint over US President Donald Trump's deportation sweeps. US Immigration and Customs Enforcement agent Christian Castro was taken into ​custody by agents of the Minnesota Bureau of Criminal Apprehension in downtown Minneapolis and was booked into the Hennepin County jail on his outstanding arrest warrant, the agency said.