Washington, DC

1. Trump Texas endorsement
2. VRA backlash hits sports
3. Vance borrows a Rubio page
4. Trump on Cuba
5. US-Iran progress stalled
6. Progressives endorse in SoCal race

The yield on 30-year Treasuries ▲ to its highest level since 2007 after a selloff of government bonds.

Behind Cornyn’s bad news in Texas

Texas Sen. John Cornyn paid a price today for years-old comments questioning President Donald Trump’s political viability, failing an uneven loyalty test, Semafor’s Burgess Everett reports. The president endorsed state attorney general Ken Paxton over Cornyn in next week’s runoff, with big ramifications for the Senate map and the GOP. Trump said he thought Cornyn had failed him, even as Vice President JD Vance — and other Republicans who had far harsher words for Trump in the past — stay in his good graces. “I don’t know what you can complain about on John Cornyn,” said Sen. Jerry Moran, R-Kan. “I don’t know anything that he’s done that’s offensive in a significant way to the president.” Sen. Lindsey Graham, R-S.C., estimated that backing Paxton would make defending the seat three times costlier; Sen. Lisa Murkowski, R-Alaska, said she thinks the seat is now in “jeopardy.”

Voting rights fight hits college sports

College sports is the new battleground for the Voting Rights Act. This morning House Republicans cancelled a vote on the SCORE Act — a bill that would establish federal standards for “name, image, and likeness” compensation in college sports — after the Congressional Black Caucus announced unanimous opposition to it yesterday. The caucus called on leaders of major collegiate sports conferences to speak up for Black political representation in the wake of the Supreme Court’s recent ruling that narrows the 1965 voting law. Today the NAACP followed suit and called for a boycott of public universities in states that have moved to change voting maps in response to the court’s decision. “The NAACP will not watch the same institutions that depend on Black athletic prowess to fill their stadiums and their bank accounts remain silent while their states strip Black communities of their voice,” said Derrick Johnson, president of the NAACP.

Vance’s chance at the podium

Secretary of State Marco Rubio’s joke about avoiding certain reporters at a recent White House press briefing landed so well that Vance used it again today. “I’ve got my cheat sheet here, so I know who to call on and, most importantly, who not to call on,” Vance said. Rubio and Vance were each filling in for press secretary Karoline Leavitt, who is out on maternity leave. Rubio’s jocular performance earned him praise and sparked 2028 chatter. Vance took the same, light-hearted approach this afternoon, but didn’t manage to charm his audience quite as well. Still, Vance deftly ducked questions, and as Semafor’s Ben Smith recently argued, the vice president has long been underestimated by media and political elites. As he barnstorms for vulnerable Republicans, sets fundraising records, and writes another book, his actual political record suggests he shouldn’t be.

What happens when every interaction on the internet becomes monetized? Joe Weisenthal, co-host of Bloomberg’s Odd Lots podcast, thinks we’re already finding out. After more than two decades reporting on business, he has witnessed the transformation of financial media firsthand, from the early “golden” era of Twitter, when amateurs would engage in what he calls “unmonetized transactions,” to now, when everyone with expertise is selling something. In this week’s episode of Compound Interest, presented by Amazon Business, Liz and Semafor Editor-in-Chief Ben Smith ask Weisenthal about the future of financial journalism in the age of AI, the creator economy, and what gets lost when every interaction becomes monetized.

Trump sounds diplomatic note on Cuba

As his administration continues to squeeze the Cuban government, Trump struck a more diplomatic tone today. He told Semafor during a tour of the White House ballroom construction site that Cuba is “a failed nation” that “needs help” from the US, adding that he believes a diplomatic deal can be made. While aides and allies portray military action as a last resort, Trump indicated that it’s not at the front of his mind. “I don’t know about changing the regime,” he told Semafor when asked whether a new government in Cuba is needed to make progress. “I could do that, whether you change the regime or not. … It’s been a tough regime. They’ve killed a lot of people.” The US is expected to unveil an indictment of former Cuban president Raúl Castro tomorrow, on Cuban Independence Day.

— Shelby Talcott

US-Iran mediators see little progress

Mediators between the US and Iran have seen little progress on ending the war since the start of ceasefire negotiations more than five weeks ago. Trump has continued to threaten a return to attacks if a deal isn’t reached, saying today he came within an hour of striking Iran and that they risk a “big hit” in a few days. Trump has repeatedly extended deadlines since talks began. As Vance pointed out during his White House press briefing today, the fragile ceasefire has lasted longer (41 days) than active fighting (38 days). While US attacks are suspended, the consequences of stalled trade through the Strait of Hormuz have been grave across the globe. NATO is beginning to consider getting involved, with member states discussing a possible mission to assist ships through the strait if it hasn’t reopened by July.

Progressives endorse in a race dividing Democrats

Democrats’ search for more winnable House seats is shining a brighter light on Southern California, where internal tension is putting the party at risk of a November lockout, Semafor’s David Weigel reports. The Congressional Progressive Caucus PAC picked its candidate today, endorsing Democrat Ammar Campa-Najjar in the 48th District. But Campa-Najjar’s critics, including Barbara Boxer, a former senator from California, argue that he’s blocking a more electable candidate. As the party splits between him and primary foe Marni von Wilpert, a San Diego city council member, Campa-Najjar’s allies worry that two Republicans could advance to the general election in a district Kamala Harris narrowly carried. The Democratic Party’s ongoing battle over how sharply to distance itself from the unpopular Israeli government is a factor in the race. Progressives getting behind Campa-Najjar say that pro-Israel groups’ spending on von Wilpert’s behalf has backfired.

The global financial landscape is evolving at a pace unseen in previous years, propelled by the adoption of new technologies and rapid innovation.

As Washington’s regulatory approach evolves, new opportunities are emerging, but questions remain around how these policy shifts will impact the industry and how consumers access services.

On Wednesday, May 20, Semafor will convene the Banking on the Future Forum in Washington, DC, with on-the-record conversations featuring Jonathan V. Gould, Comptroller of the Currency; Sen. Tina Smtih, D-Minn., Senate Committee on Banking, Housing and Urban Affairs, Subcommittee on Digital Assets; Rep. French Hill, R-Ark., Chairman of the House Financial Services Committee; Rep. Bryan Steil, R-Wis.; Sarah Levy, CEO of Betterment; and additional industry leaders, on how policy and technology are steering the industry’s trajectory.

Join us as we examine how evolving regulations are shaping innovation and what they signal for the future of financial technology.

Trump-IRS Settlement

• IRS officials were prepared to fight a lawsuit brought by President Trump, outlining weaknesses in the case in a 25-page memo sent to the Treasury Department that concluded the Justice Department should move to dismiss the case. — NYT
• Treasury’s top lawyer, Brian Morrissey, resigned yesterday after Trump dropped his lawsuit and the Justice Department announced a settlement agreement that includes a $1.8 billion “anti-weaponization fund.” — WSJ
• Acting Attorney General Todd Blanche defended the fund at a Senate hearing today and suggested that participants in the Jan. 6, 2021, riot on Capitol Hill would be eligible to apply for benefits.
• The Justice Department expanded the details of its settlement agreement with Trump today to include a pledge that bars the IRS from pursuing claims against Trump, his family, and his companies over unpaid taxes.

Economy

• President Trump said in an interview he’ll allow Federal Reserve Chair Kevin Warsh to act independently: “I’m going to let him do what he wants to do. He’s a very talented guy, he’s going to be fine, he’s going to do a good job.” — DC Examiner
• Treasury Secretary Scott Bessent said in an interview that the Trump administration is “not in a rush” to extend a tariff and critical minerals trade truce with China that ends ‌in November. — Reuters
• A study by the National Bureau of Economic Research found recent mass deportations have led to job losses for both immigrant and US-born workers.

World

• Chinese leader Xi Jinping told President Trump that Russian President Vladimir Putin may eventually regret his decision to invade Ukraine. — FT
• The head of the World Health Organization is “deeply concerned about the scale and speed” of the Ebola outbreak.
• The Nigerian military said that joint airstrikes it launched with US forces this weekend have killed 175 jihadists from the Islamic State group in Nigeria, including the group’s global second-in command. — AFP

Outside the Beltway

• The FBI said the shooters that killed ​​three people at a San Diego mosque met online and shared a “broad hatred” towards different religions and races.