Washington, DC

1. GOP immigration feud
2. Spirit bailout in works
3. Trump officials defend trade
4. Iran seizes ships
5. Musicians vs. AI

Spirit Airlines ▲ 270% on news of expected government-funded bailout.

Republicans feud over immigration — again

House Republicans are fracturing over a bipartisan immigration plan, a feud that serves as a microcosm of the broader battle roiling the party ahead of the midterms, Semafor’s Nicholas Wu reports. The Dignity Act — which would bolster border security, create a pathway for legal residency for “Dreamers” and DACA recipients, and revamp the legal immigration process — faces an onslaught of criticism from the right. Instead of backing off of their support, its Republican supporters are digging in — a sign of how intractable the fight over immigration policy is, even among Trump-supporting Republicans. Rep. Marlin Stutzman, R-Ind., who’s also a member of the hardline Freedom Caucus, called the Dignity Act a “good bill” and said he wanted his conservative colleagues to relent on the criticism. “I think we need to be realistic,” added Stutzman. “There’s always controversy over a bill that people don’t read and then opine on it before they read it,” said Rep. Mike Kelly, R-Pa., another supporter.

Government close to extending Spirit a lifeline

President Donald Trump meant it when he said yesterday that “maybe the federal government should help” Spirit Airlines. The government is on the verge of extending the troubled budget airline a lifeline — a $500 million loan, in exchange for warrants to take a potential stake in the company, Semafor’s Eleanor Mueller and Rohan Goswami report. The Departments of Transportation and Commerce are taking the lead on the process, and though talks are advanced, the deal isn’t done. Spirit’s challenges date back to the Biden administration, when antitrust regulators blocked its planned merger with JetBlue. Both airlines are now in dire straits, although Spirit is faring far worse. JetBlue has considered potential merger partners, should it have to sell itself, Semafor has reported.

Tensions run high over Trump’s trade policies

Top Trump administration officials defended the president’s trade agenda today in tense hearings across the Capitol. Treasury Secretary Scott Bessent ducked questions about reports that the US is considering extending the oil-rich UAE a financial lifeline, saying “numerous” countries have asked the US for “swap lines” — a sign the global energy shock is hitting global financial systems hard. At home, rising energy costs are hitting the agriculture sector, Rep. Darin LaHood, R-Ill., told US Trade Representative Jamieson Greer: “I’m looking for some optimism for my farmers.” Meanwhile, Commerce Secretary Howard Lutnick clashed with Sen. Jeanne Shaheen, D-N.H., on his recent outburst at Canada. Lutnick denied that the US is selling its best chips to China, to which Shaheen quipped, “I would urge you to look at the intelligence.”

Hormuz returns to a standstill as talks stall

Peace negotiations remain stalled a day into Trump’s open-ended ceasefire extension, which he said is designed to give Iran’s fractured leadership time to “come up with a unified proposal.” Trump “has not set a firm deadline to receive an Iranian proposal,” White House press secretary Karoline Leavitt said. Traffic through the Strait of Hormuz has returned to a standstill after Iran attacked three ships today, seizing two. The US is continuing its blockade, and beginning to crack down on the shadow fleet that has quietly delivered Iranian oil to China for years. The effects of the energy shock are spreading westward, with Lufthansa canceling 20,000 flights to save on jet fuel and hints that food prices are rising in the US. The tenuous ceasefire between Israel and Lebanon is being tested, too, with reports this afternoon of an exchange of attacks at the border.

Grammy artists lobby for access to AI training data

Three dozen Grammy winners and nominees kicked off a lobbying blitz in Washington today, hoping to convince Congress that AI companies should be legally required to disclose when they use copyrighted material to train their models. The artists are supporting a bipartisan bill by Sens. Peter Welch, D-Vt., Marsha Blackburn, R-Tenn., Adam Schiff, D-Calif., and Josh Hawley, R-Mo., that would give creators access to datasets used to train AI models to determine whether their work has been used without consent or payment. “They’re not entitled to it,” Welch said in an interview with Semafor, referring to use of copyrighted content. “Creators are entitled to the benefit of the creativity that they produce.” But AI companies argue that training on copyrighted materials is key to innovation. Welch is pushing to hold a hearing on the bill in the Judiciary Committee.

— Lauren Morganbesser

White House

• The Centers for Disease Control won’t publish a report that shows the COVID vaccine is effective. — WaPo
• President Trump plans to reclassify marijuana, making it easier to study the drug for medicinal uses. — Axios

Iran War

• At least 34 tankers with links to Iran have bypassed the US blockade in the Gulf. — FT

Congress

• Rep. David Scott, D-Ga., the first Black man to chair the House Agriculture Committee, died today at 80 years old. — AJC
• Republicans plan to introduce two data privacy bills that would preempt about two dozen state laws.
• Doctors are cashing in on a bipartisan law passed in 2020 designed to protect consumers from surprise medical bills, and insurers are passing the expense on to customers. — NYT

Energy

• Wealthy nations are hoarding oil and driving up global prices. — NYT

Courts

• Justin Sun, a crypto billionaire, has accused the Trump family’s World Liberty Financial of “criminal extortion,” saying in a lawsuit filed this week he lost $276 million when the company blocked him from cashing out his investment.

Media

• President Trump’s social media company is replacing its CEO, former Republican congressman Devin Nunes, after bringing in $3.2 million in revenue, while posting losses of $712 million last year.

Arts

• A health care billionaire gave the National Gallery a $116 million donation to loan artworks nationwide. — WaPo

— former President George W. Bush on a viral moment when he slipped Michelle Obama an Altoid during a funeral.

Laura McGann, editor

With help from Elana Schor, senior Washington editor, and Morgan Chalfant, Washington briefing editor

Graph Massara and Lauren Morganbesser, copy editors

Contact our reporters:

Burgess Everett, Eleanor Mueller, Shelby Talcott, Nicholas Wu, David Weigel