Reuters US Domestic News Summary

US President Donald Trump has invoked the Defense Production Act to address munitions production and supply chain constraints, amid growing concerns over US weapons manufacturers' capacity to meet demand.

Following is a summary of current US domestic news briefs.

Trump invokes Defense Production Act for munitions, supply chains

U.S. President Donald Trump has invoked the Defense Production Act to address constraints in weapons supply and development for munitions production and supply chains, according to a memo made public on Tuesday. The move comes amid growing concern in Washington about the capacity of U.S. weapons manufacturers to meet demand.

Fast-tracked power plants fuel AI boom, with little public scrutiny

From the front window of her house, Breanne Kidd once watched the sun rise over farmland as ​she sipped coffee before toddlers arrived at her home daycare. Over the past year, that view has been replaced by cranes, steel and dust as work crews build Meta’s 800-acre Bowling Green data center. More alarming was the appearance of something Kidd hadn’t been told about: construction of a large natural gas power plant meant to serve the project.

Trump administration challenges ​reparations for Black residents in Chicago suburb, city defends program

The Trump administration said on Tuesday it was moving to challenge a reparations program for Black residents in the Chicago suburb of Evanston, while the city's mayor defended the program. Evanston had ‌offered reparation money to Black residents whose ​families suffered lasting damage from decades of discriminatory practices. It marked the first such step by a U.S. city.

Luigi Mangione due in court on Wednesday in CEO murder case

Luigi Mangione, the man accused of gunning down a health insurance executive on a Manhattan sidewalk, is due for a hearing in state court on Wednesday ahead of his highly anticipated murder trial. Mangione, 28, missed a court appearance on Tuesday due to a paperwork error related to his transfer from custody, a prosecutor said. The judge called the error "unfortunate" and told the parties to return to court in Manhattan on Wednesday.

Trump: Clayton DNI confirmation won't go forward until McDonald is confirmed as US Attorney

President Donald Trump said Wednesday's Senate hearing on Jay Clayton's nomination to become the next U.S. spy chief was canceled and would not go forward until James McDonald is confirmed as a U.S. Attorney. Last week, Trump nominated Clayton, the U.S. Attorney for the Southern District of New York, to be the next spy chief amid a political firestorm over Bill Pulte, a fierce loyalist whom Trump picked to fill the role on a temporary basis.

Potential Tropical Cyclone One forms off Texas coast, threatening dangerous flash flooding

A tropical storm ‌was expected to form off the Texas coast by Wednesday morning from a system labeled Potential Tropical Cyclone One, the U.S. National Hurricane Center said on Tuesday, warning of heavy rainfall and dangerous flash flooding along the energy corridor that includes major offshore drilling and onshore refineries. Those refineries have so far taken only preliminary precautions of securing plants' loose items that could be thrown around by high winds expected when the storm comes onshore near the Texas-Louisiana border as early as Wednesday.

Some at Fed may pencil in a hike. Most won't. Warsh is a question mark

A majority of Federal Reserve policymakers now feel they will need to keep U.S. short-term borrowing costs on hold all year, projections due out on Wednesday are expected to show, with a small number seen penciling in a rate hike to stop a spike in inflation from getting entrenched in the economy. The anticipated adjustments to the Fed's so-called dot plot would mark a hawkish shift from where Fed officials were just three months ago. They also present a particularly sticky communications challenge for new Fed Chairman Kevin Warsh, as stronger-than-expected job gains in recent months and inflation on the rise since the start of the Iran war have shifted the focus of arguments at the policy-setting table from whether to cut to the possibility of a hike.

US retail sales beat expectations in May

U.S. retail sales increased more than expected in May, but a slowdown is likely as the cushion from larger tax refunds against higher prices diminishes. Retail sales jumped 0.9% last month after a downwardly revised 0.4% gain in April, the Commerce Department's Census Bureau said on Wednesday. Economists polled by Reuters had forecast retail sales, ‌which are mostly goods and are not adjusted for inflation, rising 0.5% after a previously reported 0.5% increase in April.

Trump-endorsed Mike Collins wins Georgia primary for Senate, to face Jon Ossoff in November

Georgia Republicans selected U.S. Representative Mike Collins as their U.S. Senate nominee on Tuesday, according to U.S. media, choosing President Donald Trump's preferred candidate in a runoff over political outsider Derek Dooley. Collins will face Jon Ossoff, a potential Democratic presidential candidate in 2028 and the only incumbent Senate Democrat up for reelection in a state that Trump won in 2024.

As oil roundtrips, AI booms, and US consumers spend, economists' Fed outlooks hit the extremes

Is the second half of 2026 when the U.S. consumer finally cracks and leaves the economy gasping for breath, or will rising inflation ‌and strong investment and hiring force the Federal Reserve to hike interest rates to tame surging growth similar to what happened during the COVID-19 pandemic? Pick a view and there is a highly trained economist helping advise billions of dollars in capital who shares it, particularly now when the outlook is muddied by volatile geopolitics, U.S. growth that seems narrowly based but continues beating expectations, and financial markets that may reflect an economy on the cusp of a profound transformation or yet another bubble.

US SEC poised to allow stock token trading in potential market shakeup

U.S. equity markets face a potential shakeup as the Securities and Exchange Commission readies a new policy that would allow crypto companies to offer blockchain-based stocks, analysts and lawyers said. The crypto industry says tokenized stocks — blockchain-based instruments that track traditional equities — could revolutionize stock markets by allowing shares to be traded 24/7 and settled instantly, boosting liquidity and reducing transaction costs.

Washington airport will halt operations for most of July 4th

Ronald Reagan Washington National Airport will close on July 4 starting at noon EDT (1600 GMT) due to 250th U.S. anniversary events in the capital region including a military flyover, the Metropolitan Washington Airports Authority said Tuesday. The airport, located in Virginia close to downtown Washington, D.C., will also close for several hours on July 3 for rehearsals. The closures will force the cancellations of hundreds of flights.

Trump suffers endorsement setback in Georgia: 4 takeaways from Tuesday's primaries

Georgia Republicans rejected President Donald Trump's pick for governor on Tuesday, handing him his most embarrassing primary defeat in this election cycle. Voters selected businessman Rick Jackson over Lieutenant Governor Burt Jones, who was endorsed by Trump and Governor Brian Kemp. Jackson was leading by 5 percentage points when the race was called by U.S. media.

Lawmakers in the dark on Iran deal as Trump says he will send it to Congress

President Donald Trump said on Tuesday he was willing to send his interim deal to end the war with Iran for review by the U.S. Congress, as lawmakers, including many of his ⁠fellow Republicans, said they were largely in the dark ​about the pact.

The U.S.-Iran agreement, announced on Sunday, has spurred optimism that a conflict that has killed thousands and disrupted the global economy will soon end.

Trump calls for delay of spy nominee's confirmation

U.S. President Donald Trump ⁠on Wednesday said a Senate hearing on his nominee to lead U.S. intelligence, Jay Clayton, should be postponed, throwing plans for a swift confirmation into doubt just hours before the session. Republicans had been pushing for rapid Senate approval of Clayton, the top U.S. attorney for Manhattan, whom Trump nominated less than a week ago as director of national intelligence (DNI) amid a political backlash over the loyalist he picked to fill the role temporarily.

Kennedy orders American exposed to hantavirus to stay quarantined against her will, WSJ reports

U.S. Health Secretary Robert F. Kennedy Jr. has ordered an American passenger exposed to hantavirus on a cruise ship to remain in quarantine despite medical advice and against her will, the Wall Street Journal reported on Tuesday. The passenger, Angela Perryman, 47, was one of 18 Americans quarantined in the U.S. after Andes hantavirus cases were found aboard a cruise ship earlier this year. The group had initially been placed at a Nebraska quarantine unit.

Warsh-led Fed expected to hold interest rates ⁠steady

The Federal Reserve is expected to hold interest rates steady on Wednesday at the end of the first meeting chaired by Kevin Warsh, with a new policy statement and economic projections likely to reflect growing concern about the inflation stoked by the Iran war even as oil prices slide on peace deal hopes. With recent data showing strong U.S. hiring, a relatively low 4.3% unemployment rate, and inflation well above the U.S. central bank's 2% target, many analysts anticipate the Fed will remove language from its policy statement about "additional adjustments" to its benchmark interest rate, a reference that had been used to indicate likely future decreases in borrowing costs.

US sues New York health officials over alleged fraud in Medicaid homecare program

The Trump administration sued top New York health officials on Tuesday over an alleged scheme to rig the bidding process for managing the state's estimated $10 billion Medicaid homecare program, harming patients and caregivers as well ​as taxpayers. The U.S. Department of Justice said the lawsuit aims to stop an alleged fraudulent scheme in which Public Partnerships LLC generated millions of dollars of improper profits after being "pre-selected" to take over New York's Consumer Directed Personal Assistance Program, or CDPAP.

US progesterone supplies tighten as menopause treatment demand grows

U.S. supplies of progesterone are coming under strain, with patients, clinicians, and pharmacists reporting recent intermittent shortages of oral versions of the hormone used in many fertility and menopause treatments. The supply concerns come as women going through menopause across the country are already facing difficulties filling prescriptions for estrogen patches, another commonly used hormone therapy.

FBI says it thwarted plot to use drones, snipers to attack White House UFC event

The FBI ⁠said on Tuesday it thwarted a planned attack on the Ultimate Fighting Championship mixed martial arts event on the White House lawn on the weekend, taking five people into custody, according to court documents. The plot involved using explosive-laden drones to strike the north side of the White House with the aim of funneling attendees toward an exit where snipers planned to open fire on fleeing politicians and others, the FBI alleged in court papers.

US import prices increase more than expected in May

U.S. import prices rose more than expected in May amid strong gains in the prices of fuels and capital goods, leading to the largest annual increase in nearly four years. Import prices increased 1.9% last month after an upwardly revised 2.0% jump in April, the Labor Department's Bureau of Labor Statistics said on Tuesday. Economists polled by Reuters had forecast import prices, which exclude tariffs, rising 1.0% after a previously reported 1.9% surge in April.

Trump administration further dismantles Education Department

President Donald Trump's administration said on Tuesday it was moving some oversight of special ⁠education and civil ​rights enforcement away from the U.S. Education Department as it further dismantled the agency. Here are some details:

US single-family housing starts slide to eight-month low; imported inflation increases sharply

U.S. single-family homebuilding fell to an eight-month low in May, pressured by higher mortgage rates and building material prices, suggesting the housing market could remain a drag on economic growth in the second quarter. The decline combined with a plunge in multi-family housing starts to push down overall homebuilding to a six-year low last month, the report from the Commerce Department on Tuesday showed. Labor and building lots are also scarce, making it difficult for builders to respond to a housing shortage that has created an affordability crisis.

As US nears 250th birthday, Reuters/Ipsos poll shows many Americans doubt it will last another 250 years

As the U.S. approaches its 250th birthday next month, two out of five Americans do not believe it will endure another 250 years beyond that, according to a Reuters/Ipsos poll that highlighted deep divisions over how the nation views itself. The four-day poll, which concluded on Monday, comes amid the polarizing pageantry that President Donald Trump has brought to celebrations for July 4, which will mark 250 years since the people who became known as the founding fathers of the U.S. declared their independence from Britain.

Crews battle algae bloom in Washington's newly repainted Reflecting Pool

Work crews poured hydrogen peroxide into the newly repainted Lincoln Memorial Reflecting Pool on Tuesday to combat an algae bloom, a little over a week after it was repainted as part of President Donald Trump's campaign to revamp some of Washington's major monuments. National Park Service workers were seen emptying jugs ⁠labeled "12% hydrogen peroxide" into the visibly green water of the nearly century-old basin that stretches between the Lincoln Memorial and the Washington Monument on the National Mall.

Judge to weigh US deal to end Halkbank prosecution

A federal judge is set to consider on Wednesday whether to approve an agreement reached by President Donald Trump's administration and Halkbank to resolve the Justice Department's criminal prosecution of the Turkish state-run lender for allegedly helping Iran evade U.S. economic sanctions. The agreement promises to relieve an irritant that has bothered relations between NATO allies Turkey and the United States since the United States first brought the charges in 2019. The announcement of the settlement in March sent Halkbank's shares soaring on the Istanbul stock exchange.

US Senate narrowly blocks new bid ⁠to rein in Trump war powers

The U.S. Senate on Tuesday narrowly blocked the latest Democratic-led effort to end the Iran war until it is authorized by Congress, the ninth by Democrats since Israel and the United States began their air ⁠attacks on Iran in February. The Senate voted by 48-47 to block the resolution under the war powers law, which followed a framework agreement announced this week by the White House and Tehran for a further ceasefire and talks to end the conflict.

US judge limits enforcement of Idaho's transgender bathroom access law

A federal judge on Tuesday barred Idaho from fully enforcing a new state law making it a crime, punishable by up to five years in prison, for transgender people to use public restrooms whose designations differ from their sex assigned at birth. The Idaho statute, the most restrictive among various laws enacted in about 20 U.S. states limiting access of transgender people to bathrooms conforming with their gender identity, was due to go into effect on July 1.

Death rate in ICE immigrant detention centers more than doubles under Trump, Reuters analysis finds

A Vietnamese man with cardiovascular problems collapsed and died in the “Speedway Slammer,” the repurposed Indiana maximum-security prison that’s become a symbol of the Trump administration’s immigration crackdown. In a Pennsylvania detention center, a Chinese man who had previously attempted suicide was found hanging in the shower. In a New York facility, a Honduran man with an elevated ‌heart rate and tremors from alcohol withdrawal died in his cell with no emergency care. These men are among 50 people who have died ‌in U.S. immigration detention since President Donald Trump launched his mass deportation campaign in January 2025, Immigration and Customs Enforcement records show.

Golf-Scheffler grouped with defending champion Spaun and Howell at US Open

Scottie Scheffler will launch his bid to complete a career Grand Slam alongside defending U.S. Open champion J.J. Spaun and amateur Mason Howell at Shinnecock Hills Golf Club in Southampton, New York. World number one Scheffler was given an early ​tee time to start the year's third major. His group will head out in the opening round on Thursday from the par-four 394-yard first hole starting at 8:14 a.m. ET (1214 GMT).