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    Elon Musk’s proposed new political party could focus on a few pivotal congressional seats

    The new US political party that Elon Musk has boasted about bankrolling could initially focus on a handful of attainable House and Senate seats while striving to be the decisive vote on major issues amid the thin margins in Congress.Tesla and SpaceX’s multibillionaire CEO mused about that approach on Friday in a post on X, the social media platform which he owns, as he continued feuding with Donald Trump over the spending bill that the president has signed into law. On Saturday, without immediately elaborating, the former Trump adviser announced on X that he had created the so-called America party.“One way to execute on this would be to laser-focus on just 2 or 3 Senate seats and 8 to 10 House districts,” wrote Musk, who is the world’s richest person and oversaw brutal cuts to the federal government after Trump’s second presidency began in January. “Given the razor-thin legislative margins, that would be enough to serve as the deciding vote on contentious laws, ensuring they serve the true will of the people.”Musk did not specify any seats which he may be eyeing.In another post on Friday, when the US celebrated the 249th anniversary of its declaration of independence from the UK, Musk published a poll asking his X followers whether he should advance on his previously stated idea of creating the America party to challenge both Republicans and Democrats. More than 65% of about 1.25m responses indicated “yes” as of Saturday morning.“Independence Day is the perfect time to ask if you want independence from the two-party (some would say uniparty) system!,” Musk also wrote in text accompanying the poll, which he promoted several times throughout Friday.Musk on Saturday then posted on X: “Today, the America party is formed to give you back your freedom.”He also wrote: “By a factor of 2 to 1, you want a new political party, and you shall have it! When it comes to bankrupting our country with waste & graft, we live in a one-party system, not a democracy.”One of the replies to Musk’s announcement that he reposted showed a picture of a two-headed snake near the word “uniparty” as well as the logos of the Democratic and Republican parties.“End the Uniparty,” the reply said. Musk in turn responded to the reply with: “Yes.”New political parties do not have to formally register with the Federal Election Commission “until they raise or spend money over certain thresholds in connection with a federal election”.Musk’s posts on Friday and Saturday came after he spent $277m of his fortune supporting Trump’s victorious 2024 presidential campaign. The Republican president rewarded Musk by appointing him to lead the “department of government efficiency”, or Doge, which abruptly and chaotically slashed various government jobs and programs while claiming it saved $190bn.But Doge’s actions may also have cost taxpayers $135bn, according to an analysis by the Partnership for Public Service, a nonpartisan non-profit dedicated to studying the federal workforce.Musk left Doge at the end of May and more recently became incensed at Trump’s support for a budget bill that would increase the US debt by $3.3tn. He threatened to financially support primary challenges against every member of Congress who supported Trump’s spending bill – along with promising to “form the America Party” if it passed.The House voted 218 to 214 in favor of the spending bill, with just two Republicans joining every Democrat in the chamber in unsuccessfully opposing it. In the Senate, the vice-president, JD Vance, broke a 50-50 deadlock in favor of the bill, which Trump signed on Friday hours after Musk posted his America party-related poll.The Trump spending bill’s voting breakdown illustrated how narrowly the winning side in Congress carries some of the most controversial matters.Trump has warned Musk – a native of South Africa and naturalized US citizen since 2002 – that directly opposing his agenda would be personally costly. The president, who has pursued mass deportations of immigrants recently, publicly discussed deporting Musk from the US as well as cutting government contracts for some of his companies.“Without subsidies, Elon would probably have to close up shop and head to South Africa,” Trump posted on his own Truth Social platform.The president also told a group of reporters in Florida: “We might have to put Doge on Elon. Doge is the monster that might have to go back and eat Elon. Wouldn’t that be terrible.” More

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    I’m no fan of Elon Musk. But Trump’s threat to deport him is sickening | Justice Malala

    Elon Musk is an utterly deplorable human being. He has unashamedly flashed an apparent Nazi salute; encouraged rightwing extremists in Germany and elsewhere; falsely claimed there is a “genocide” in South Africa against white farmers; callously celebrated the dismantling of USAID, whose shuttering will lead to the deaths of millions, according to a study published in the Lancet this week; and increased misinformation and empowered extremists on his Twitter/X platform while advancing his sham “I am a free speech absolutist” claims. And so much more.So the news that Donald Trump “will take a look” at deporting his billionaire former “first buddy” Musk has many smirking and shrugging: “Couldn’t happen to a nicer guy.”I like a good comeuppance, but this doesn’t please me at all. It sends a chill down the spine. It is the use of law enforcement agencies as a tool to chill debate, to silence disagreement and dissent, and to punish political opposition. Democracy is dimming fast in the United States, but threats to deport US citizens for disagreeing with the governing administration’s policies are the domain of authoritarian regimes such as Belarus or Cameroon.Coming just hours after his officials raised the possibility of stripping Zohran Mamdani, the Democratic mayoral candidate for New York who was naturalised in 2018, of his US citizenship, Trump’s threat should have all of America – a country of immigrants – appalled, afraid and up in arms. As the Guardian reported on Tuesday, the White House press secretary, Karoline Leavitt, appeared to pave the way for an investigation into Mamdani’s status after Andy Ogles, a rightwing Republican congressman for Tennessee, called for his citizenship to be revoked on the grounds that he might have concealed his support for “terrorism” during the naturalization process. Trump has branded Mamdani “a pure communist” and said “we don’t need a communist in this country”.Mamdani has not broken any laws. His sin? Running for office.In his threats against Mamdani and Musk, the president comes across like the notorious Republican senator Joseph McCarthy in the 1950s. McCarthy was, according to the Harvard law dean Ervin Griswold, “judge, jury, prosecutor, castigator, and press agent, all in one”. Trump’s threats to Musk and Mamdani are a departure from the administration’s modus operandi of targeting foreign students involved in pro-Palestinian organizing on US college campuses. It is now targeting people it disagrees with on any issue. The threats are not based on any generally applicable laws but on the whim of the president or other administration leaders. It is an escalation of the assault on civil liberties using government entities to arbitrarily investigate and potentially punish critics.Over the past four weeks Musk’s sin has been to vehemently oppose Trump’s sweeping spending bill, calling it a “disgusting abomination”. Musk is of course not concerned about the bill’s slashing of health insurance, food stamps and other aid for the poor, but that it does not slash enough and that its cuts to green energy tax credits may cost his company, Tesla, about $1.2bn.But Musk is a US citizen with the right to oppose a piece of legislation without threats from the highest office in the land and the fear of deportation. When Musk poured $288m of his money into Trump and other Republicans’ 2024 candidacies, no one raised a hand to question his credentials as an American. Instead, the administration gave him the run of the White House including midnight ice cream binges and a job as a glorified bean counter at the so-called department of government efficiency (Doge).The hypocrisy and the corruption embedded within Trump’s deportation threats is mind-boggling but unsurprising given his track record. The consequence, like the McCarthyism of the 1950s, is a climate of fear and a chilling of political discourse and action. Proud Americans who arrived here recently, such as Mamdani, are fearful of running for office, of speaking their minds in true American tradition, despite having the same responsibilities and privileges as every other American conferred on them. Trump’s threat does to Musk what it does to every immigrant: it shuts them up, it holds over their head the possibility of made-up charges and deportation to El Salvador or some other country.Musk and his like were chortling when the Columbia University activist Mahmoud Khalil was cruelly detained for months. It is in the nature of those who like to tweet about freedom but do not think about it deeply enough, such as Musk, to not realize that their silence when the rights of a Khalil or a Mamdani are trampled upon will come back to haunt them. The Republican rump is silent today as Musk is threatened with deportation, just as it has been when masked men have come for Khalil and others who dared exercise their first amendment rights.There will be silence when they come for the Republicans. That’s because we will all be gone by then, after no one else said a thing.

    Justice Malala is a political commentator and author of The Plot To Save South Africa: The Week Mandela Averted Civil War and Forged a New Nation More

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    Trump’s sweeping tax cut and spending bill heads to House – US politics live

    CBS parent company Paramount on Wednesday settled a lawsuit filed by Donald Trump over an interview broadcast in October, in the latest concession by a media company to the US president, who has targeted outlets over what he describes as false or misleading coverage.Paramount said it would pay $16m to settle the suit with the money allocated to Trump’s future presidential library, and not paid to Trump “directly or indirectly”.“The settlement does not include a statement of apology or regret,” the company statement added.Trump filed a $10bn lawsuit against CBS in October, alleging the network deceptively edited an interview that aired on its 60 Minutes news program with then-vice-president and presidential candidate Kamala Harris to “tip the scales in favor of the Democratic party” in the election. In an amended complaint filed in February, Trump increased his claim for damages to $20bn.CBS aired two versions of the Harris interview in which she appears to give different answers to the same question about the Israel-Hamas war, according to the lawsuit filed in a federal court in Texas.CBS previously said the lawsuit was “completely without merit” and had asked a judge to dismiss the case.The White House did not immediately respond to a Reuters request for comment. Edward A Paltzik, a lawyer representing Trump in the civil suit, could not be immediately reached for comment.Good morning and welcome to our live coverage of US politics as Donald Trump’s sweeping tax cut and spending legislation is expected to head to the House after it cleared the Senate last night with the narrowest of margins.The Senate passed the measure in a 51-50 vote with Vice President JD Vance breaking a tie after three Republicans – Thom Tillis of North Carolina, Susan Collins of Maine and Rand Paul of Kentucky – joined all 47 Democrats in voting against the bill.It followed a long debate in which Republicans grappled with the so-called “one big beautiful” bill’s price tag – it is set to raise the deficit by $5 trillion – and its impact on the US healthcare system.The vote in the House, where Republicans hold a 220-212 majority, is likely to be close.Mike Johnson, the House speaker, said during an interview with Fox News’ Sean Hannity that Republican leadership would seek to move the legislation through the Rules Committee this morning and get it before the entire House before Friday’s holiday, unless travel plans were upset by thunderstorms that have menaced the Washington area.“Hopefully we’re voting on this by tomorrow or Thursday at latest, depending on the weather delays and travel and all the rest – that’s the wild card that we can’t control,” Johnson said yesterday.A White House official told reporters that Trump would be “deeply involved” in pushing House Republicans to approve the bill. “It’s a great bill. There is something for everyone,” Trump said at an event in Florida. “And I think it’s going to go very nicely in the House.”Is Trump’s optimism misplaced? You can read our report on the bill’s progress so far and prospects for today here:Entertainingly at least, the bill has reanimated the much-missed Musk-Trump feud, with the tech billionaire calling the legislation “insane” and suggesting he could form a new political party if it passed.In response, Trump claimed he could “look into” deporting Musk. So stay with us for all the developments.In other news:

    Trump announced on his social media platform that Israel has agreed to a 60-day ceasefire in its war in Gaza and urged Hamas to accept the terms of the agreement. The news comes as Israeli prime minister, Benjamin Netanyahu, is scheduled to visit the White House on 7 July.

    Trump toured “Alligator Alcatraz”, a controversial new migrant detention jail in the remote Florida Everglades, and celebrated the harsh conditions that people sent there would experience. Florida governor, Ron DeSantis, and Homeland Security secretary, Kristi Noem, said detainees could arrive at the rapidly constructed facility as soon as tomorrow. Trump later revisited his idea of “renovating and rebuilding Alcatraz”, with a view to reopening the infamous island prison in San Francisco, which has been closed for over 60 years.

    The Pentagon has halted shipments of air defense missiles and other precision munitions to Ukraine over concerns that US stockpiles are too low. On Sunday, Moscow fired more than 500 aerial weapons at Ukraine overnight, in a barrage that Kyiv described as the biggest air attack so far of the three-year war.

    USAID will officially stop implementing foreign aid starting today, secretary of state Marco Rubio said. He added that the US’s assistance in the future will be targeted and limited, focusing on trade rather than aid.

    The Trump administration raised the possibility of stripping Zohran Mamdani, the Democratic mayoral candidate for New York City, of his US citizenship over his vocal support for Palestinian rights. Democrat senator Chris Murphy slammed the idea as “racist bullshit”. More

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    Trump and Musk’s feud blows up again with threats of Doge and deportation

    Donald Trump and Elon Musk’s feud reignited this week with the former political allies trading sharp public threats of retribution. The blowup, centered around Musk’s opposition to Trump’s signature tax bill as it moves through Congress, ends a period of rapprochement between two of the world’s most powerful men.Musk posted escalating attacks against Trump’s sweeping spending bill on his social media platform X, calling the legislation “insane” and vowing to form a new political party if it passed late Monday. In response, Trump claimed he could “look into” deporting the South Africa-born billionaire, while also suggesting he could cut government subsidies for Musk’s companies or set the so-called “department of government efficiency” (Doge) on its former leader.“Doge is the monster that might have to go back and eat Elon. Wouldn’t that be terrible?” Trump asked reporters on Tuesday.Musk’s attempt to derail the tax bill was a major factor in his falling out with the president last month, and the Tesla CEO’s renewed offensive comes at a sensitive time as Trump seeks to shepherd the legislation through Congress. The fight could test Musk’s political influence over the Republican party as he seeks to peel away votes for the bill, as well as further deteriorate his once-close relationship with Trump.Musk has repeatedly criticized the legislation Trump calls his “big, beautiful bill” for its potential to nullify the cuts to the federal government he made through Doge and for the likelihood it will add trillions to the national debt, which he has warned will “bankrupt America” and imperil his dream of reaching Mars. Musk, a top Republican megadonor, intensified his campaign in recent days with threats that he would form his own “America Party” and target lawmakers in upcoming elections who voted for the bill in 2026 primary elections.“Every member of Congress who campaigned on reducing government spending and then immediately voted for the biggest debt increase in history should hang their head in shame!” Musk posted. “They will lose their primary next year if it is the last thing I do on this Earth.”Trump has rejected Musk’s criticisms of the bill, alleging that his opposition is because the bill would end a tax credit for consumers purchasing electric vehicles.“Elon’s very upset that the EV mandate is gonna be terminated,” Trump said on Tuesday. “Not everybody wants an electric car. I don’t want an electric car.”When a reporter asked if Trump is considering deporting Musk, he responded that he didn’t know but would “take a look”. Musk replied to a video of the statement on X, saying: “So tempting to escalate this. So, so tempting. But I will refrain for now.” Trump bought a Tesla in March.skip past newsletter promotionafter newsletter promotionTrump’s remarks were a stark turnaround from only months ago when he hosted a showcase for Tesla on the White House lawn in front of media, during which he encouraged his supporters to buy Musk’s cars and sat in the driver’s seat of a red Model S sedan. In contrast, Trump threatened this week that he could destroy Musk’s businesses.“Elon may get more subsidy than any human being in history, by far, and without subsidies, Elon would probably have to close up shop and head back home to South Africa,” Trump posted on his Truth Social platform on Monday. “No more Rocket launches, Satellites, or Electric Car Production, and our Country would save a FORTUNE.”Musk’s companies, especially SpaceX, are closely intertwined with US government agencies and have received billions of dollars in contracts from them. The government has meanwhile come to rely on SpaceX for key parts of its space travel and satellite communications programs, and the company is being considered for a role in building a new multibillion dollar missile defense program. The symbiotic relationship between Musk and the government has made any political tensions sensitive for his businesses, and Tesla’s share price declined on Monday and Tuesday as the feud continued. More

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    Elon Musk calls Trump’s big bill ‘utterly insane and destructive’ as Senate debates

    The billionaire tech entrepreneur Elon Musk on Saturday criticized the latest version of Donald Trump’s sprawling tax and spending bill, calling it “utterly insane and destructive.“The latest Senate draft bill will destroy millions of jobs in America and cause immense strategic harm to our country!” Musk wrote on Saturday as the Senate was scheduled to call a vote to open debate on the nearly 1,000-page bill.“Utterly insane and destructive,” Musk added. “It gives handouts to industries of the past while severely damaging industries of the future.”Passing the package, Musk said, would be “political suicide for the Republican Party.”Musk’s comment reopens a recent fiery conflict between the former head of the Department of Government Efficiency (Doge) and the administration he recently left. They also represent yet another headache for Republican Senate leaders who have spent the weekend working overtime to get the legislation through their chamber so it can pass by Trump’s Fourth of July deadline.Earlier this month, the Tesla and SpaceX CEO also came out against the House version of Trump’s “big, beautiful bill”, denouncing that proposal as a “disgusting abomination”.“This massive, outrageous, pork-filled Congressional spending bill is a disgusting abomination. Shame on those who voted for it: you know you did wrong. You know it, he wrote at the time.Musk’s forceful denouncement of Trump’s spending plans triggered a deep and public rift between the billionaire and the president, though Musk in recent weeks has been working to mend relations.On Saturday, Musk posted a series of disparaging comments about the senate version of the bill, which argued the legislation would undermine US investments in renewable energy.Musk boosted several comments from Jesse Jenkins, a macro-scale energy systems engineer who teaches at Princeton.After Jenkins wrote, “The energy provisions in the Republicans’ One Big Horrible Bill are truly so bad! Who wants this? The country’s automakers don’t want it. Electric utilities don’t want it. Data center developers don’t want it. Manufacturers in energy intensive industries don’t want it.” Musk replied: “Good question. Who?”Musk’s continued criticism of Trump’s budget proposals comes as the bill faces a rocky path in the senate. Republicans are hoping to use their majorities to overcome Democratic opposition, but several Republican senators are concerned over provisions that would reduce spending on Medicaid and food stamps to help cover the cost of extending Trump’s tax breaks. Meanwhile, fiscal conservatives are worried about the nation’s debt are pushing for steeper cuts. More

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    Doge employee ‘Big Balls’ has resigned, says White House official

    One of the US so-called “department of government efficiency” (Doge) service’s best-known employees, 19-year-old Edward Coristine, has resigned from the US government, a White House official said on Tuesday, a month after the acrimonious departure of his former boss Elon Musk.The White House official gave no further details on the move and Coristine did not immediately return an email seeking comment.Coristine worked at Musk’s brain connectivity company Neuralink before joining the tech billionaire as he led Doge established by the Trump administration earlier this year. Doge has overseen job cuts at almost every federal agency but is starting to see losses itself. Key Musk lieutenant Steve Davis, who was in charge of day-to-day running of Doge, has also left, along with others.The White House has said that Doge’s mission will continue.Coristine’s youth and online moniker “Big Balls” became a pop-culture meme as Doge swept through the US government, seizing data and firing employees en masse.Last month, Reuters reported that Coristine was one of two Doge associates promoting the use of AI across the federal bureaucracy. Media outlets, including Wired which first reported his departure, revealed that Coristine had been active in a chat room popular with hackers and previously had been fired from a job following an alleged data leak.In March, Reuters reported that Coristine had provided tech support to a cybercrime gang that had bragged about trafficking in stolen data and harassing an FBI agent.Beginning around 2022, while still in high school, Coristine ran a company called DiamondCDN that provided network services, according to corporate and digital records reviewed by Reuters and interviews with half a dozen former associates.Among its users was a website run by a ring of cybercriminals operating under the name “EGodly”, according to digital records preserved by the internet intelligence firm DomainTools and the online cybersecurity tool Any.Run.The digital records reviewed by Reuters showed the EGodly website, dataleak.fun, was tied to internet protocol addresses registered to DiamondCDN and other Coristine-owned entities between October 2022 and June 2023, and that some users attempting to access the site around that time would hit a DiamondCDN “security check”.In 2023, EGodly boasted on its Telegram channel of hijacking phone numbers, breaking into unspecified law enforcement email accounts in Latin America and Eastern Europe, and cryptocurrency theft.Early that year, the group distributed the personal details of an FBI agent who they said was investigating them, circulating his phone number, photographs of his house, and other private details on Telegram.EGodly also posted an audio recording of an obscene prank call made to the agent’s phone and a video, shot from the inside of a car, of an unknown party driving by the agent’s house in Wilmington, Delaware, at night and screaming out the window: “EGodly says you’re a bitch!“Reuters could not independently verify EGodly’s boasts of cybercriminal activity, including its claims to have hijacked phone numbers or infiltrated law enforcement emails. But it was able to authenticate the video by visiting the same Wilmington address and comparing the building to the one in the footage.The FBI agent targeted by EGodly, who is now retired, told Reuters that the group had drawn law enforcement attention because of its connection to swatting, the dangerous practice of making hoax emergency calls to send armed officers swarming targeted addresses. The agent didn’t go into detail. Reuters is not identifying him out of concern for further harassment.“These are bad folks,” the former agent said. “They’re not a pleasant group.” More

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    ‘I have never seen such open corruption’: Trump’s crypto deals and loosening of rules shock observers

    Cryptocurrency multibillionaire Justin Sun could barely contain his glee.Last month, Sun publicly flaunted a $100,000 Donald Trump-branded watch that he was awarded at a private dinner at Trump’s Virginia golf club. Sun had earned the recognition for buying $20m of the crypto memecoin $Trump, ranking him first among 220 purchasers of the token who received dinner invitations.Trump’s much-hyped 22 May dinner and a White House tour the next day for 25 leading memecoin buyers were devised to spur sales of $Trump and wound up raking in about $148m, much of it courtesy of anonymous and foreign buyers, for Trump and his partners.Memecoins are crypto tokens that are often based on online jokes but have no inherent value. They often prove risky investments as their prices can fluctuate wildly. The $Trump memecoin was launched days before Trump’s presidential inauguration, spurring a surge of buyers and yielding tens of millions of dollars for Trump and some partners.Trump’s private events on 22 May to reward the top purchasers of $Trump have sparked strong criticism of the president from ethics watchdogs, ex-prosecutors and scholars for exploiting his office for personal gain in unprecedented ways. But they fit in a broader pattern of how Trump has exploited the power and lure of his office to enrich himself and some top allies via cryptocurrencies.“Self-enrichment is exactly what the founders feared most in a leader – that’s why they put two separate prohibitions on self-benefit into the constitution,” said former federal prosecutor Paul Rosenzweig. “Trump’s profiting from his presidential memecoin is a textbook example of what the framers wanted to avoid.”Scholars, too, offer a harsh analysis of Trump’s crypto dealings.“I have never seen such open corruption in any modern government anywhere,” said Steven Levitsky, a professor of government at Harvard University and an expert on authoritarian regimes who co-authored the book How Democracies Die.Such ethical and legal qualms don’t seem to have fazed Trump or Sun. The pair forged their ties well before the dinner as Sun invested $75m in another Trump crypto enterprise, World Liberty Financial (WLF), that Trump and his two older sons launched last fall and in which they boast a 60% stake.The Chinese-born Sun’s political and financial fortunes, as well as those of other crypto tycoons, have improved markedly since Trump took office and moved fast to loosen regulations of cryptocurrency ventures at the Securities and Exchange Commission (SEC), the justice department and other agencies to upend Joe Biden’s policies.As the SEC has eased regulations and paused or ended 12 cases involving cryptocurrency fraud, three Sun crypto companies that were charged with fraud by an SEC lawsuit in 2023 had their cases paused in February by the agency, which cited the “public interest” and reportedly has held settlement talks.Trump’s and Sun’s mutually beneficial crypto dealings symbolize how the US president has boosted his paper wealth by an estimated billions of dollars since he returned to office, and worked diligently to slash regulations fulfilling his pledges to make the US the “crypto capital of the planet” and end the “war on crypto”.After the 22 May dinner, Sun posted: “Thank you @POTUS for your unwavering support of our industry!”Although Trump’s crypto ventures are less than a year old, the State Democracy Defenders Fund watchdog group has estimated that as of mid-March they are worth about $2.9bn.In late March, Reuters revealed that WLF had raised more than $500m in recent months and that the Trump family receives about 75% of crypto token sales.Trump’s pursuit of crypto riches and deregulation represents a big shift from his comments to Fox News in 2021, when he said that bitcoin, a very popular crypto currency, “seems like a scam”.View image in fullscreenIn July 2019, Trump posted that “Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade”, and noted that their value was “highly volatile and based on thin air”.Now, Trump’s new pro-crypto policies have benefited big campaign donors who lead crypto firms as well as Elon Musk, the world’s richest person, who spent almost $300m to help elect Trump, and who boasts sizable crypto investments in bitcoin through his electric car firm Tesla and his other ventures. Though Trump and Musk have since fallen out, the mogul’s crypto fortunes seem to have improved due to the president’s deregulatory agenda.Trump’s special envoy to the Middle East, Steve Witkoff, is a real estate billionaire who helped found WLF, in which he has a stake; Trump’s two oldest sons, Eric and Don Jr, and Witkoff’s son Zach have played key roles promoting WLF in the Middle East and other places.Trump’s use of his Oval Office perch to increase his wealth through his burgeoning crypto businesses while his administration rapidly eases regulations is unprecedented and smacks of corruption, say scholars, many congressional Democrats and some Republicans.“To me, Trump’s crypto dealings seem pretty explicit,” Julian Zelizer, a Princeton University professor who focuses on political history, told the Guardian. “Policy decisions are being made regarding parts of the financial industry that are being done not to benefit the nation, but his own financial interests … It’s hard to imagine what he’s doing benefits the nation.”Rosenzweig stressed that “not only do Trump’s extravagant crypto ventures benefit him personally as his administration slashes crypto regulations and takes pro-crypto steps at the SEC; they also benefit his tech bro backers who will take full advantage of the end of regulatory enforcement”.In Congress, leading Democrats, including Richard Blumenthal, a senator from Connecticut, and Jamie Raskin, a representative from Maryland, in May announced separate inquiries by key panels in which they are ranking members into Trump’s crypto dealings, and attacked Trump for using his office to enrich himself via his crypto operations.“With his pay-for-access dinner, Trump put presidential access and influence on the auction block,” Blumenthal told the Guardian. “The scope and scale of Trump’s corruption is staggering – I’ll continue to demand answers.”Last month, too, the Democratic senator Jeff Merkley, from Oregon, and the Senate minority leader, Chuck Schumer, introduced the “end crypto corruption” bill, which 22 other Democrats have endorsed.“Trump’s crypto schemes are the Mount Everest of corruption,” Merkley told the Guardian. “We must ban Trump-style crypto corruption so all elected federal officials – including the president, vice-president and members of Congress – cannot profit from shady crypto practices,” which his bill would curtail.Some former congressional Republicans are also incensed by Trump’s blatant use of his presidency to peddle $Trump. “Nobody should be allowed to use their public positions while in office to enrich themselves,” said ex-Republican congressman Charlie Dent of Pennsylvania, who once chaired the House ethics panel. “A member of Congress would not be permitted to engage in the kind of memecoin activities which the president has been doing.”Trump and his family have dismissed critics concerns about the 22 May events and his other crypto ventures.Before the 22 May dinner, Trump’s press secretary, Karoline Leavitt, told reporters that the president would attend his crypto gala in his “personal time” and it was not a White House event, but declined to release names of the many anonymous and foreign attendees.To allay criticism, the Trump Organization said in January that Trump’s business interests, including his assets and investments, would be placed in a trust his children would manage and that the president wouldn’t be involved in decision-making or daily operations. Trump’s family also hired a lawyer as an ethics adviser.But those commitments have been dwarfed by Trump’s public embrace of his crypto ventures and strong deregulatory agenda. In March, for instance, Trump hosted the first-ever “crypto summit” at the White House, which drew a couple dozen industry bigwigs who heard Trump promise to end Biden’s “war on crypto”.Trump’s crypto critics worry that the president’s strong push for less industry regulation may create big problems: the crypto industry has been battered by some major scandals including ones involving North Korean hackers and has been plagued by concerns about industry’s lack of transparency and risks.For instance, a report last December by leading research firm Chainalysis found that North Korean hackers had stolen $1.34bn of cryptocurrency in 2024, a record total and double what they stole the year before.The report concluded that US and foreign analysts believe the stolen funds were diverted in North Korea to “finance its weapons of mass destruction and ballistic missile programs”.Other crypto fraud schemes in the US have spurred loud alarms.In an annual report last September, the FBI revealed that fraud related to crypto businesses soared in 2023 with Americans suffering $5.6bn in losses, a 45% jump from the previous year.Sam Bankman-Fried, who founded the now bankrupt FTX crypto exchange, was sentenced to 25 years in prison in March 2024 by a New York judge for bilking customers out of $8bn.Nonetheless, a justice department memo in April announced it was closing a national cryptocurrency enforcement team that was established in 2022, which had brought major crypto cases against North Korean hackers and other crypto criminals.The memo stressed that the justice department was not a “digital assets regulator” and tried to tar the Biden administration for a “reckless strategy of regulation by prosecution”. The memo stated that a pro-crypto Trump executive order in January spurred the justice department’s policy shift.Ex-prosecutors and ethics watchdogs worry increasingly that crypto scandals and conflicts of interest will worsen as the Trump administration moves fast to ease crypto oversight at the justice department, the SEC and other agencies.Some of WLF’s high-profile crypto deals have involved overseas crypto firms which have had recent regulatory and legal problems in the US, fueling new concerns, watchdogs and ex-prosecutors say.View image in fullscreenOne lucrative deal raised eyebrows when WLF was tapped to play a central role in a $2bn investment by Abu Dhabi financial fund MGX that is backed by the United Arab Emirates in the world’s largest crypto exchange, Binance.As part of the deal, the Abu Dhabi fund bought $2bn of a WLF stablecoin, dubbed USD1, to invest in Binance. Stablecoins are a popular type of cryptocurrency that are often pegged to the dollar.The WLF deal comes after Binance in 2023 pleaded guilty to violating US money-laundering laws and other violations and the justice department fined it a whopping $4bn.Furthermore, Binance’s ex-CEO and founder, Changpeng Zhao, pleaded guilty in the US to violating the Bank Secrecy Act and failing to maintain an effective anti-money-laundering program.Zhao, who still owns 90% of Binance, served a four-month jail term last year.WLF’s $2bn deal was announced at an Abu Dhabi crypto conference on 1 May that drew Eric Trump two weeks before Trump’s visit to the UAE capital, sparking concerns of foreign influence and ethics issues.Increasing WLF’s ties further with Binance, the crypto exchange announced on 22 May that it had begun listing the stablecoin for trading purposes. Binance got some good news at the end of May, too, when the SEC announced the dismissal of a civil lawsuit it filed in 2023 against the exchange for misleading investors about surveillance controls and trading irregularities.Paul Pelletier, a former acting chief of the justice department’s fraud section, noted that SEC moves back in February “to emasculate its crypto enforcement efforts sent crypto fraudsters a welcome mat of impunity”.He added: “The recent dismissal of the SEC’s lawsuit against Binance for mishandling customer funds, days after it began listing the Trump family’s cryptocurrency on its exchange, seemed to be the natural consequence of such enforcement laxity. Victims be damned.”Other agency deregulatory moves that favor crypto interests can boost Trump’s own enterprises and his allies, but pose potential risks for ordinary investors, say legal scholars.Columbia law professor Richard Briffault noted that as part of the Trump administration’s wide-ranging and risky crypto deregulatory agenda which can benefit Trump’s own crypto ventures, the Department of Labor in late May nixed a Biden-era “extreme care” warning about 401K plans investing in crypto.“[The labor department] has rescinded the red light from the Biden years for 401K retirement plans, which is another sign of the Trump administration’s embrace of crypto,” Briffault said.Briffault, an expert on government ethics, has told the Guardian more broadly that Trump’s crypto ventures and his 22 May memecoin bash are “unprecedented”.“I don’t think there’s been anything like this in American history,” he said. “Trump is marketing access to himself as a way to profit his memecoin. People are paying to meet Trump and he’s the regulator-in-chief. It’s doubly corrupt.”In late May, in a new crypto business twist, the Trump Media and Technology Group, the parent of Truth Social, said it had sealed a deal to raise $2.5bn to be used to buy bitcoin, creating a reserve of the cryptocurrency.Meanwhile, Trump’s stablecoin fortunes and those of many industry allies could get boosts soon from a Senate stablecoin bill, dubbed the “genius act”, that’s poised to pass the Senate on Tuesday but which critics have said loosens regulatory controls in dangerous ways unless amended with consumer protections and other safeguards.Senators Merkley and Elizabeth Warren, of Massachusetts, led unsuccessful efforts to amend the bill to thwart potential criminal abuses, protect consumers and prevent Trump from using his office to profit his crypto businesses.“The ‘genius act’ fails to prevent sanctions evasion and other illicit activity and lets big tech giants like Elon Musk’s X issue their own private money – all without the guardrails needed to keep Americans safe from scams, junk fees or another financial crash,” Warren told the Guardian.“Donald Trump has turned the presidency into a crypto cash machine,” Warren said. The Genius act, Warren stressed, should have “prohibited the President AND his family from profiting from any stablecoin project.”More broadly, Kedric Payne, the general counsel and ethics director at the Campaign Legal Center, said: “President Trump’s financial stakes in the crypto industry at the same time that he is determining how the government will regulate the industry is unprecedented in modern history. This is precisely the type of conflict of interest that ethics laws and norms are designed to stop.” More

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    ‘This is the looting of America’: Trump and Co’s extraordinary conflicts of interest in his second term

    The South Lawn of the White House had never seen anything like it. The president of the United States was posing for the world’s media against a backdrop of five different models of Tesla, peddling the electric vehicles with the alacrity of a salesman on commission.“I love the product, it’s beautiful,” Donald Trump said as he sank into the driver’s seat of a scarlet Model Y. With the Tesla CEO, Elon Musk, beside him, he went on to enlighten the American people that some Tesla models retail for as little as $299 a month, “which is pretty low”.That same day, within hours of the White House’s makeover into a Tesla showroom, the New York Times revealed that Musk had decided to invest $100m in political groups working for Trump. The massive injection of capital would enhance the nearly $300m Musk had already spent getting Trump elected.A week after the commercial on the South Lawn, on 19 March, Trump’s commerce secretary, the billionaire investment banker Howard Lutnick, went on Fox News and exhorted viewers to “buy Tesla”. “Who wouldn’t invest in Elon Musk’s stock?” he gushed. “He is probably the best person to bet on I’ve ever met.”At the time Lutnick made those remarks, he had yet to divest himself from Cantor Fitzgerald, the financial services firm he had led for 35 years. He was talking up stock in which he still had a vested interest – Cantor held $300m in Tesla shares, a stake that has since soared to $555m. And the commerce secretary was also bigging up his friend Musk, whose SpaceX and Starlink businesses are regulated by the commerce department that Lutnick now controlled.Eight days in March, three friendly billionaires, one of them the world’s most powerful person, another the world’s richest person. Doing what friends do: scratching each other’s backs. Even though Musk later fell out with Trump – in a shocking social media spat that roiled US politics – the imagery remains powerful and highly symbolic of Trump’s second term in the White House.View image in fullscreenBetween them they committed in those eight days acts that, had they occurred during any previous presidency – including Trump’s own first administration – would have provoked howls of protest concerning quid pro quo. Yet those eight days represent just a tiny slice of the graft and possible misconduct that is unfolding.The gift by the Qatari government of a $400m luxury jetliner to be repurposed as Air Force One has become the paradigm of the blitz of ethical dilemmas unleashed by Trump. The Pentagon last month accepted possession of the plane, which will be transferred to Trump’s presidential library once he leaves office.That Trump doggedly accepted the Qatari “palace in the sky” despite widespread condemnation speaks volumes about how indomitable he feels at this moment. He has shrugged aside the rebukes even of devoted Trump supporters, including the rightwing commentator Ben Shapiro, who bridled at the transfer’s grubby appearance, calling it “skeezy stuff”.It also shows Trump’s disdain for the US constitution, given the emoluments clause’s clear prohibition. Presidents are not allowed to accept high-value gifts from foreign governments without congressional consent.Yet the luxury jumbo jet is also just the thinnest edge of a very fat wedge. There has been so much more that has flown, if not under the radar, then partially obscured from sight amid the ethical blizzard of corruption and influence.There have been multimillion-dollar TV packages, real estate deals in Arab petrostates, dinners with the president going for $5m a pop, plum job offers for contributors to Trump’s inaugural fund, cryptocurrency ventures attracting lucre from secret foreign investors, “drill, baby, drill” enticements for oil and energy donations – the list goes on, and on … and on.View image in fullscreenTrump and his team of billionaires have led the US on a dizzying journey into the moral twilight that has left public sector watchdogs struggling to keep up. Which is precisely the intention, said Kathleen Clark, a government ethics lawyer and law professor at Washington University in Saint Louis.“They have mastered the technique of flooding the zone – doing so much so fast that they are overwhelming the ability of ethics groups and institutions to respond.”Chris Murphy, the Democratic US senator from Connecticut, has delivered two long speeches on the floor of his chamber in which he has itemised Trump and Co’s most controversial transactions. The record already stretches to scores of entries, chronicling what Murphy calls Trump’s “efforts to steal from the American people to enrich himself and his friends”.In an interview with the Guardian, the senator said that Trump’s was a “pay-for-play administration. That’s the underlying theme. You pay Donald Trump money, he does favors for you. That’s old-fashioned corruption.”Clark’s analysis is even more pointed. “People talk about ‘guardrails’ and ‘norms’ and ‘conflict of interest’, which is all very relevant,” she said. “But this is theft and destruction. This is the looting of America.”Trump signaled that he would be a president like no other at the start of his first term, when he became the only occupant of the Oval Office in modern times to refuse to divest his assets by putting them into a blind trust. Though presidents are not bound by conflict of interest laws applying to other elected officials, the norm has been for incumbents to set themselves high standards, the archetype being Jimmy Carter’s sale of his peanut farm.Trump, by contrast, put his assets in a trust that remained under the control of his family, with him as its sole beneficiary. He incurred numerous accusations of first-term conflicts of interest, as foreign officials from 20 countries descended on his hotels, while Secret Service agents in Trump’s security detail were made to pay premium rates, pouring at least $10m into his bank account.Such unprecedented disregard for time-honored ethical boundaries was shocking at the time. Now it looks merely quaint.“In the first Trump administration there were ethical lapses,” said Danielle Caputo, senior legal counsel for ethics at the Campaign Legal Center watchdog organization. “With this new administration, there’s not just a disregard for ethics rules, there’s contempt.”The conversion of political power into cash began even before Trump re-entered the White House. Weeks before the inauguration, Melania Trump sealed a $40m deal with Jeff Bezos for an Amazon Prime “behind-the-scenes” documentary on her life.Trump banked millions of dollars of his own by leveraging his status as president-elect to browbeat tech companies. He settled disputes over the freezing of his then Twitter and Facebook accounts in the wake of the 6 January 2021 insurrection at the US Capitol, prising $10m out of his friend Musk, and $25m from Meta.View image in fullscreenTrump used the months leading up to November’s election to test-run what, as Murphy noted, has become a theme of his second presidency – pay-to-play. He invited oil executives to Mar-a-Lago and, as the Washington Post revealed, offered them a “deal” in which they would donate $1bn to his campaign and in return he would tear up profit-limiting environmental regulations once he was back in the White House.He kept his promise: on day one of his new administration he discharged a barrage of pro-fossil fuel actions.Donors to his record-breaking $239m inaugural fund have also found Trump to be a grateful benefactor. Warren Stephens, an investment banker who gave $4m, was rewarded with the role of US ambassador to the UK; Jared Issacman, a billionaire pilot and close associate of Musk’s, gave $2m to the fund and was tapped to lead Nasa (he was abruptly yanked from the appointment last month after he was reportedly discovered to have been been donating to Democrats).The pattern has continued into 1600 Pennsylvania Avenue. Three months into the administration, Trump’s eldest son, Don Jr, launched an elite private members’ club named Executive Branch which commands a sign-in fee of a cool $500,000.Its attraction? Access to cabinet members and top Trump advisers.Not to be outdone by his own son, Trump himself has followed the same playbook at his Mar-a-Lago resort. In March, he began inviting business leaders to dine with him in group settings at $1m a seat.Prefer something more intimate? No problem. One-on-one meetings are also available, yours for $5m.For a seasoned observer such as Norman Eisen of the Brookings Institution, the sheer mass of problematic transactions puts the administration beyond the pale. “It’s over the line, unlawful, corrupt and unethical. It is un-American.”Eisen has experience dealing with knotty ethical issues. He was special counsel for ethics during Barack Obama’s first year in the White House.Obama notes in his autobiography, A Promised Land, that Eisen earned himself the title of Dr No, so strict was his approach to conflicts of interest. He would tell White House officials hoping to attend outside events that “if it sounds fun, you can’t go”.View image in fullscreenEisen told the Guardian that he prevented Obama from refinancing his family home in Chicago. “He was regulating the banking industry at the time, in the midst of the Great Recession.”The contrast between such almost pedantic strictures and the free-for-all in today’s White House astonishes and dismays Eisen. “If my somewhat tongue in cheek motto for Obama was ‘If it’s fun, you can’t do it,’ then the motto of the Trump White House seems to be ‘If you can make a buck, grab it.’”Exhibit one of such conduct, Eisen suggests, is the Trump family’s dive into the world of crypto. Shortly before the inauguration, they launched personal lines of meme coins, $Trump and $Melania.Then they issued a new cryptocurrency pegged to the dollar, known as a stablecoin. Taken together, Eisen believes that the two crypto ventures from the family of a sitting president amount to “one of the worst and most shocking conflicts of interest in our nation’s history”.Trump bragged on the campaign trail that he would turn the US into the “crypto capital of the planet”. He was more circumspect in front of his faithful followers about the big plans his sons were simultaneously developing to cash in on the currency.Since his election victory, Trump has used his presidential status and executive power to boost not only the general standing of crypto but also his personal stake within it. One of his early executive orders created a “strategic bitcoin reserve” designed to bolster the industry.At the same time, he eviscerated basic regulatory controls, halted federal crypto-related lawsuits and disbanded a taskforce trained to hunt down crypto criminals. “We have a president whose net worth now includes very substantial investments in cryptocurrency who at the same time is loosening regulations on the crypto industry,” Eisen said.The unrivalled magnetism of the US presidency helped Trump to blast his nascent meme coin, a currency almost entirely reliant on hype, into the stratosphere. It rocketed from $6.50 on inauguration day to a peak of $73.Then, when it predictably plummeted back down to below $10, he used his presidential allure brazenly once again to boost the coin. This time he announced a “private intimate dinner” for the top 220 $Trump investors, followed by an exclusive White House tour for the top 25.The ensuing scramble for a seat at the presidential dining table reportedly earned the Trump family $148m.The $Trump meme coin is an ethics regulator’s waking nightmare. There is little transparency around who is channelling money into it, and even less around the potentially nefarious motives of investors.The same might be said about the Trumps’ other big crypto venture, World Liberty Financial, which was launched last September by Trump’s sons. The president himself is listed by the company as its “chief crypto advocate”.skip past newsletter promotionafter newsletter promotionFederal law sets tight rules against foreign parties donating to presidential campaign or inaugural funds. Yet there is nothing to prevent outside interests with connections to foreign governments engaging with World Liberty and its new product, the USD1 stablecoin.One of its biggest backers is the Chinese-born crypto billionaire Justin Sun (best known for paying $6.2m at a New York art sale for a banana taped to a wall, then eating it). Before the inauguration, Sun pumped $75m into World Liberty. A few weeks later, the Securities and Exchange Commission paused an investigation into him for alleged securities fraud.View image in fullscreenUSD1 is currently valued at $2.3bn, the lion’s share of which comes from a $2bn transaction by MGX, a firm which happens to be chaired by the intelligence chief of the United Arab Emirates. That a company with ties to the government of an Arab petrostate should be able to make such a giant investment in a crypto venture generating profit for the sitting US president and his family goes against the grain of decades of robust accountability work countering conflicts of interest.“We’ve been pretty successful in this country rooting out corruption, or at least pushing it into the shadows,” Murphy, the US senator, told the Guardian. “Now it happens out in the open.”And it doesn’t stop there. Over the past few months Trump’s second son, Eric, has been frenetically traveling the globe in search of real estate deals, throwing to the winds the pledge Trump made in his first administration to eschew any foreign business transactions.In his second administration, Trump has made no such promise. All he has conceded this time, in a document released by his lawyers in January, is that the Trump Organization will avoid cutting business deals with foreign governments.Even that boundary has been pushed close to breaking point. Eric Trump sealed his first deal since Trump re-entered the White House in April.It involves the construction of the Trump International Golf Club & Villas outside the Qatari capital, Doha, as part of a $5bn luxury beachside resort. The company managing the development, Qatari Diar, is owned by the sovereign wealth fund of the Qatari government.Two weeks after the Trump Organization announced the deal, the president himself arrived in Doha as part of his three-country tour of the Middle East. He declared the trip a huge success, having drummed up trillions of dollars of business and investments for the US.The Guardian invited the White House to comment on complaints that the president has blurred his public duties with his family’s personal profit-making activities to a degree never before seen in the US. A White House spokesperson replied with a statement which they asked us to print in its entirety, so here goes:“There are no conflicts of interest. President Trump’s assets are in a trust managed by his children. It is shameful that the Guardian is ignoring the GOOD deals President Trump has secured for the American people, not for himself, to push a false narrative. President Trump only acts in the best interests of the American public – which is why they overwhelmingly re-elected him to this office, despite years of lies and false accusations against him and his businesses from the fake news media.”The argument that there is no conflict of interest because Trump’s business is handled by his children, specifically his sons – Don Jr leading on crypto and his social media empire, Eric on real estate – is an interesting one. Sons seem to be de rigueur, to the extent that members of Trump’s inner circle who lack them might feel the need to borrow one.View image in fullscreenTake other key figures in Trump’s cabinet, which is packed with so many banking and energy billionaires that it ranks as the richest presidential cabinet in modern history. Lutnick, the commerce secretary, who has a personal fortune of about $2.2bn, has been involved in various accusations of conflict of interest since he encouraged Fox News viewers to “buy Tesla”.At the start of this year Cantor Fitzgerald, the Wall Street firm Lutnick led for almost four decades, increased its investment in Strategy, the biggest corporate holder of bitcoin in the world. Cantor’s stake rose by several hundred million dollars to $1.3bn, research by the watchdog Accountable.US has found.At the same time, Lutnick was actively helping Trump create his strategic bitcoin reserve, a move that greatly strengthened the cryptocurrency.Last month, Lutnick divested himself of his Cantor stake, but he did so by transferring his ownership to his two sons. Cantor is now controlled by Brandon Lutnick, 27, and Kyle Lutnick, 28.Or take Robert F Kennedy Jr, the vaccine-skeptic health secretary. Under intense pressure from Democratic senators, he agreed to divest his 10% stake in any payout from an ongoing lawsuit in which he is engaged against Merck over its HPV vaccine, Gardasil.Government officials are not allowed under federal law to participate personally in official matters in which they have a financial interest. So what did Kennedy do? He transferred his stake in the case to one of his adult sons.And then there’s Mehmet Oz, the multimillionaire physician better known by his TV name, Dr Oz, whom Trump put in charge of Medicare and Medicaid. As the Washington Post has reported, Oz co-founded a health benefits company, ZorroRX, that helps hospitals save on prescription drugs.This would have been an indisputable conflict of interest, because in his job as head of the Centers for Medicare and Medicaid Services, Oz wields huge sway over hospital drug policies, and thus ZorroRX profits. Since taking up the position Oz, whose wealth is put at up to $300m, has divested himself of some of his investment portfolio and is no longer mentioned on ZorroRX’s website.View image in fullscreenHis fellow co-founder of ZorroRX, however, is still listed as the firm’s head of medical affairs. That’s his son, Oliver Oz.Under federal conflict of interest law, there is no prohibition on adult children managing the interests of parents who hold public office. Yet the spirit of the law does force us to reflect on why so many Trump administration leaders are so fond of handing sensitive money-making portfolios to their sons.“By giving over to your son, you are immediately raising questions about how separate you are going to be from the success of this business,” said Caputo of the Campaign Legal Center. “Will you be focused on what’s best for the public, or will you be guided in your decision-making by what would most benefit your family?”In the last analysis, what matters most perhaps about the financial dealings of the Trump administration is what impact they are having on the American people. In particular, what is it doing to the 77 million voters who put their trust in Trump and sent him back to the Oval Office?Trump returned to the White House partly on his promise to working-class Americans that he would “drain the swamp”, liberating Washington from the bloodsucking of special interests. Yet a review by the Campaign Legal Center found that Trump nominated at least 21 former lobbyists to top positions in his new administration, many of whom are now regulating the very industries on whose behalf they recently advocated.Eight of them, the Campaign Legal Center concluded, would have been banned or restricted in their roles under all previous modern presidencies, including Trump’s own first administration.They include Pam Bondi, the US attorney general. She approved the gift of the Qatari luxury jetliner as “legally permissible”, having herself worked as a lobbyist for Qatar.Trump’s other great pledge was that he would put the wellbeing of “forgotten” working people before that of the vested elites. His appeal was pitched at the millions of rural and working-class Americans who have languished from mounting income inequality, the decline of manufacturing jobs in the globalised economy, and what he claimed was the negative effects of millions of undocumented immigrants.Evan Feinman has witnessed personally and up close how this promise has fared in Trump 2.0. For the past three years, Feinman was busy leading a $42.5bn program created by Congress to bring affordable high-speed internet to every American home and business that needed it.The project was vast and ambitious, on a par with the rural electrification drive that transformed the heartlands of America in the 1930s. Located within the US commerce department, its success is critical to the future prosperity of millions of Americans, especially those in hard-bitten rural areas of the sort that solidly backed Trump in the last election.Studies have shown that giving families access to the internet improves the grades of school students, increases college enrolment and reduces the likelihood of households falling into debt. It also helps older Americans stay in their own homes and avoid residential care.By the inauguration, the broadband project was well under way, with several states only weeks away from breaking ground and laying the cables. Then Lutnick took over the reins of the commerce department.Within a days of his confirmation, Lutnick met with senior managers and informed them he wanted to scale back on the use of fibre optic and switch to satellite. According to an account of the meeting that was given to Feinman by someone present, Lutnick specifically inquired after his friend Musk, the CEO of Starlink, which provides internet services through low-Earth orbit satellites.View image in fullscreenDays after that, Feinman was told he was being let go. His contract was up for renewal, and it wasn’t being extended.“I was dismayed,” Feinman told the Guardian, insisting that his distress was not so much related to his own dismissal but out of concern for the Americans who would be harmed by the shift. By his reckoning, satellite internet would not only be slower than broadband, it would also be much more expensive – costing users an extra $840 a year in fees.“For Americans in rural locations, that’s going to really hurt. Many of the president’s strongest supporters – up to hundreds of thousands of families who voted for Trump – are going to see slower, more expensive internet services, and all to the benefit of the wealthiest man on earth.”According to some estimates, Musk’s Starlink stands to make $10bn to $20bn should the shift from broadband to satellite internet go ahead.The episode has left Feinman “deeply saddened. I see my nation harming itself in ways that are inexplicable and entirely avoidable.”He fears for rural Americans who will pay the price. “These are communities who put their trust in this administration. They are going to find that their trust has not been honored, and it will be to their significant future detriment.” More