Reuters US Domestic News Summary

Following is a summary of current US domestic news briefs.

Ohio's working-class voters rethink support for Trump and the Republican Party

A decade after Republican Donald Trump peeled away working-class and union voters who had long been a cornerstone of Democratic support in Ohio, Democrats and labor leaders see an opening to win back some of them in the November 3 US elections. Now midway through his second term, the president's magic appears to be losing at least some of its luster with blue-collar men and women as rising prices, the ​Iran war and concerns about his rhetoric prompt some voters to reconsider their support.

US inflation heats up in September; Fed rate hike this month back on table

US consumer prices accelerated in September as the cost of gasoline surged, dealing another blow to President Donald Trump and his Republican Party ahead of the November 3 midterm elections and putting ​an interest rate increase later this month back on the radar. The Consumer Price Index report from the Labor Department on Wednesday showed a broadening of price pressures beyond energy, raising concerns among economists that underlying inflation could be getting ‌sticky. There was also an AI-related boost ​to inflation last month. Financial markets now see the Federal Reserve's interest rate decision at its October 27-28 meeting as a closer call than before the data was released.

Anthropic to add US voting information to Claude before midterms

Anthropic said on Wednesday it would add official US voting information from nonprofit Democracy Works and election results to its Claude AI chatbot later this month, ahead of the November midterms. The AI company said its goal was to position Claude as a useful tool for political conversations, while preventing election-related abuse.

US bank regulator faults several large lenders over debanking practices

A top US bank regulator issued a report on Wednesday finding some of the country's largest banks unfairly denied services to some clients on political, religious or other grounds, but stopped short of imposing penalties. The debanking report from the Office of the Comptroller of the Currency covered nine of the nation's largest banks by asset size. The regulator found each had policies restricting some clients' access to financial services based on subjective criteria rather than financial risk.

Venezuela's Maduro due in court over new US torture charge

Ousted Venezuelan President Nicolas Maduro and his wife Cilia Flores are due in US ‌court on Thursday to respond to a new indictment accusing them of conspiring to torture political opponents. The additional charges, brought last Thursday, significantly expanded the US criminal case against Maduro, 63, and Flores, 70. They previously pleaded not guilty to charges that they abused their power to help drug traffickers ship cocaine. Their lawyers have said they deny the torture charges as well.

US judge won't block Trump order targeting DEI by federal contractors

A federal judge declined on Wednesday to block an effort by President Donald Trump to eliminate diversity, equity and inclusion initiatives by companies that do business with the US government. US District Judge Adam Abelson in Baltimore, Maryland, said that groups representing university faculty and minority business owners had failed to show a March executive order by the Republican president was too broad.

Inside the booming market for US midterm election bets

Betting on US midterm elections has surged this year on Polymarket and Kalshi, prediction markets that rose to prominence in 2024 when they bucked traditional opinion polls in signaling that President Donald Trump would win the presidency.

The markets allow traders to buy and sell binary "yes" or "no" contracts on an array of race outcomes, such as which party will control Congress and which candidate will win individual races, as well as on questions such as when candidates may drop out.

Warsh's quest for quiet Fed gets vocal pushback

Federal Reserve Chairman Kevin Warsh’s call for a “quieter” central bank is facing pushback from colleagues who see public communication as a fundamental part of their job and have taken to TV, podcasts, interviews, social media and speakers' podiums to make their policy views known. Their voices have ‌made a difference, with more than 40 appearances by nearly all of Warsh's colleagues at the central bank convincing traders to scale back rate-hike bets that had mounted after September's rate increase and Warsh's own silence on how much more the Fed may need to do.

Police say Chicago suburb suspect in alleged mass shooting plot had white supremacy manifesto

A man arrested in a Chicago suburb had shared a document expressing white supremacist views and outlined an alleged plan to carry out a mass shooting, potentially targeting a Hindu place of worship, police said on Wednesday. Alexandros Paporakis, 19, of Palatine, was arrested on Sunday after an individual reported receiving concerning electronic communications from him, Palatine police said. It was not immediately clear if he had legal representation.

Trump ‌donor leading Caucasus fund has major Armenia holdings, Russia business history

US President Donald Trump’s pick to lead a $201 million investment fund in the Caucasus holds major telecom and mining interests there and formerly ran a Russia-focused investment firm that touted close ties to the Kremlin, documents reviewed by Reuters show. Konstantin Sokolov, a 51-year-old Russian-born businessman, was put in charge of the investment vehicle, now called the Trans-Caspian Enterprise Fund, in January, according to its incorporation documents.

Pope Leo back on his feet after shock cancer diagnosis

Pope Leo's recovery from surgery is progressing as expected and he has begun walking in his hospital room and eating normally, the Vatican said on Wednesday, after doctors announced the 71-year-old pontiff was being treated for lung cancer. World leaders, Catholics across the globe and senior cardinals at the Vatican have offered prayers for Leo after he had part of his right lung removed in an operation on Tuesday.

Explainer-How does the US count measles deaths?

US Health Secretary Robert F. Kennedy Jr. has changed how the federal government recognizes deaths from measles in the midst of the worst US outbreak of the highly infectious virus in more than three decades, prompting backlash from disease experts and political opponents. Here is what you need to know about how US measles deaths are currently determined:

US retirees to receive 3.6% Social Security increase in 2027

Some 76 million Americans receiving Social Security and Supplemental Security Income benefits will see their monthly payments rise 3.6% in 2027, accelerating from the prior year's increase for a second straight year. The Social Security Administration announced the annual cost-of-living adjustment to benefits on Wednesday after the Bureau of Labor Statistics published the Consumer Price Index for September.

Federal judge blocks planned US farm agency reorganization

A federal judge on Tuesday blocked the US Department of Agriculture from proceeding with its planned agency reorganization, in a blow to President Donald Trump's sweeping overhaul of the executive branch. The ruling from the District Court for the Northern District of ⁠California is a victory for unions that had ​sued to block the reorganization effort, in part because employees said it would weaken agency services.

Eight US states sue OpenAI, claiming ChatGPT harms young users

A bipartisan group of eight states said on Wednesday they had sued ⁠OpenAI in courts across the country over harms they say ChatGPT has caused to their residents, alleging the chatbot has coached its users — including teenagers — to harm themselves or others. Attorneys general from the states, which include Iowa, Kansas and Arizona, filed the lawsuits independently in state courts, claiming ChatGPT is designed to be agreeable and engaging to earn the trust of users. But the chatbot reinforces delusions, encourages dangerous behavior and assists users in planning violence like mass shootings, the lawsuits claim.

FBI says director Patel in Virginia, not Russia

FBI Director Kash Patel was in Virginia for a law enforcement-related event, the US law enforcement agency said on Wednesday, denying a media report that he had traveled to Russia. Video from an ABC News' affiliate in Virginia also showed Patel at an event in Lynchburg on Wednesday.

US retail sales beat expectations in September on higher gasoline prices

US retail sales increased more than expected in September, boosted by higher gasoline prices, but spending ⁠elsewhere was moderate, which could temper economists' expectations for another quarter of robust consumer spending growth. Retail sales rose 0.8% last month after an upwardly revised 1.3% jump in August, the Commerce Department's Census Bureau said on Thursday. Economists polled by Reuters had forecast retail sales, which are mostly goods and are not adjusted for inflation, rising 0.3%.

US rejects recommendation for ICE body cams to be automatically activated

The Trump administration has rejected a government watchdog's recommendation that US immigration officials should use technology that would automatically activate body-worn cameras when an officer pulls their weapon or sets off a car siren. Automatic activation of body-worn cameras was one of a number of recommendations outlined in a report released on Wednesday by the Government Accountability Office (GAO), an independent nonpartisan watchdog agency for Congress.

US Supreme Court again backs Republicans in clash over political ad rates

The US Supreme Court again sided with Republicans on Wednesday in the latest ​clash over a new Federal Communications Commission policy that gives party committees access to discounted TV and radio advertising rates long available to political candidates. The court agreed to let the FCC, which is chaired by Trump ally Brendan Carr, avoid a judicially imposed deadline that would have forced the agency to rule on a Democratic challenge to the policy before the November 3 midterm elections. The FCC joined two Republican committees in filing a request to the Supreme Court to lift the lower court's deadline.

Tesla set to unveil next generation Roadster sports EV after years of delay

Tesla is set to unveil its redesigned Roadster on Thursday, nearly nine years after it first showed a next-generation version ⁠of its electric sports car. Tesla revealed a prototype of the $200,000 car in 2017 and said deliveries would begin in 2020. The price has not been updated but reservations are still $50,000 each.

Trump campaigns in Alaska, a conservative state feeling the pinch of high energy prices

With three weeks until the US midterm elections, Donald Trump on Tuesday campaigned in remote Alaska, one of several conservative states where Democrats have a rare chance of flipping a Senate seat amid voter dissatisfaction with the cost of living and the Iran war. Polling has shown Democratic candidate Mary Peltola tied or slightly ahead of incumbent Republican Senator Dan Sullivan in a state the president carried by some 14 percentage points in 2024. Here, as in much of the United States, the president's approval rating is underwater, hit by rising diesel and gasoline prices and a conflict in the Middle East that has proven deeply unpopular with voters.

US weekly jobless claims rise marginally amid low layoffs

The number of Americans filing new claims for unemployment benefits increased ⁠marginally last ​week amid low layoffs that are keeping the labor market stable. Initial claims for state unemployment benefits rose 1,000 to a seasonally adjusted 199,000 for the week ended October 10, the Labor Department said on Thursday. Economists polled by Reuters had forecast 200,000 claims for the latest week.

US lawmakers ask FAA to conduct review before allowing Amazon drone hub near Boston

A group of Democratic lawmakers on Wednesday urged the Federal Aviation Administration to conduct a new environmental review before allowing an Amazon Prime Air drone delivery hub to be located about 30 miles (48.28 km) west of Boston. Massachusetts Democratic US Senators Ed Markey and Elizabeth Warren and Representatives Jim McGovern and Lori Trahan wrote to FAA Administrator Bryan Bedford seeking a new review after communities raised concerns about the planned Westborough hub and its impact on the environment and residents’ quality of life, including noise pollution, health and safety, and privacy.

US cuts Obamacare subsidies for 189,000 with duplicate coverage

The Trump administration said on Wednesday it is cutting off Affordable Care Act subsidies for about 189,000 people it identified as having duplicate government coverage or being deceased, a move officials estimate will save taxpayers roughly $738 million this year. US Health Secretary Robert F. Kennedy Jr. said the Centers for Medicare & Medicaid Services identified enrollees in 2026 as holding subsidized coverage on the ACA federal marketplace, also known as Obamacare, while also enrolled in Medicare, Medicaid or the Children's Health Insurance Program. It also identified deceased people still on the subsidy lists.

Trump says advanced defense test range to be located in Montana

US President Donald Trump on Wednesday announced plans for what ⁠he described as a new defense "super range" in Montana for testing advanced military technologies, including autonomous weapons, space systems, electronic warfare and hypersonic weapons. The president made the announcement at a campaign event in Kalispell, Montana, a city of about 30,000 people some 200 miles (320 km) northwest of the capital Helena, his latest stop on a tour supporting Republican candidates in multiple states ahead of November 3 midterm elections. The stop was part of a broader push amid unexpectedly tight battles in Republican-leaning states.

Microsoft president warns green-card curbs could hurt US tech, Politico reports

Microsoft President Brad Smith warned the Trump administration's move to restrict green-card access for skilled foreign workers could hurt US technological competitiveness and drive talent overseas, Politico reported on Thursday. In the interview, ⁠Smith also pushed back against Vice President JD Vance's accusations that Microsoft had abused the H-1B visa program, calling them "completely off base".

Seven subpoenas engulf Nevada election chief in key midterm battle

The first Justice Department subpoena demanding voter information caught ⁠Democratic Nevada Secretary of State Cisco Aguilar off guard. It was June, and his office had been working informally with the FBI on routine election security. Weeks later, in a July 16 address from the Oval Office, President Donald Trump claimed without evidence that hundreds of thousands of noncitizens had registered to vote, citing an administration review. That review cited Nevada - a key prize in November's fight for control of the US Congress - as one of four states where noncitizen voter registration was widespread.

US toy prices surge ahead of holiday shopping season as tariffs, Iran war bite

Cash-strapped US consumers are facing a squeeze in their shopping budgets this holiday season, hit by the double whammy of tariffs and high energy costs. While overall inflation is creeping up, toy prices are surging, with an increase of 6.6% in the last year, the latest US consumer inflation data showed. Other products that depend on both overseas shipments and petroleum in their manufacturing processes are also posting higher prices.

New White House press secretary Katie Zacharia's legal career draws scrutiny

The new White House press secretary, Katie Zacharia, faced questions on Wednesday about her legal career before becoming the top ‌spokeswoman for US President Donald Trump. Zacharia, who joined the White House on Monday, has said she practiced law before entering politics. Trump has ‌described her as an attorney.

Just over half of candidates in key US Senate races say they will accept results, others hedge

Just over half of major party candidates in the most competitive US Senate races told Reuters they will accept election results regardless of the outcome, while some signaled a degree of uncertainty less than a month before the November 3 midterms. Reuters asked Republican and Democratic Senate candidates ​and their campaigns whether they would accept election results in 13 states that could determine which party controls the upper chamber of Congress in the final years of Donald Trump's presidency.