Washington, DC

1. Trump-Netanyahu rift deepens
2. Trump’s immigration losses
3. Rollins on defense
4. Economic polling sinks
5. RIP E&E

Apple shares ▼ 2% after the company rolled out its next-gen AI platform, which includes an overhaul for Siri.

Trump-Netanyahu rift over Lebanon deepens

President Donald Trump demanded in a Truth Social post this morning that Iran and Israel “stop shooting” at each other — a call that both sides answered, though the situation remains tenuous. Iran said it ended its attacks on Israel, but midday an Iranian military official said through state media that Tehran was establishing through regional waterways a new belt of “resistance,” a term that refers to Iranian allies like the Yemeni Houthis. Israeli Prime Minister Benjamin Netanyahu said he’d cease attacks on Iran, as well, but reserved the right to retaliate. Trump’s attempts to prevent the clashes from escalating revealed a deepening rift between Netanyahu and Trump on Lebanon. The two leaders are supposed to be on the same side in the conflict, but their diverging interests are making Trump’s efforts to negotiate a peace deal with Iran harder.

Rollins faces Republican criticism on parasite response

Trump appointed a new leader today for the Department of Agriculture team battling the return of the New World screwworm, after Agriculture Secretary Brooke Rollins defended her agency’s response from criticism by a Republican official who called it “slow, bureaucratic and incomplete.” Sid Miller, Texas’ agriculture commissioner, accused Rollins of dismissing his pleas for more aggressive action three times in the last year, as the parasitic fly, eradicated from the US in the 1960s, made its way north through Mexico to Texas. Its spread threatens to devastate the US cattle supply, as beef prices hit record highs. “Mr. President, I am asking you to take direct control of this response,” Miller wrote last week. This morning on CNBC, Rollins rejected Miller’s assessment: “He knows that we have been moving at Trump speed.” Rollins is scheduled to testify before the Senate Agriculture Committee on Wednesday.

Judges hand Trump immigration losses

Trump’s having a rough run in the courts on immigration policy. A federal judge ruled today that a $100,000 fee he imposed on H-1B visas is illegal, siding with 20 states that argued it amounts to a tax — the purview of Congress, not the White House. On Friday, a separate judge struck down a slate of immigration policies that left asylum seekers in limbo indefinitely. The White House is still waiting to hear from the Supreme Court on the question of birthright citizenship, which Trump attempted to limit with an executive order. During oral arguments, a majority of justices appeared skeptical of Trump’s case for ending automatic citizenship for children born in the US. When an administration lawyer suggested modern times demanded a change, Chief Justice John Roberts retorted: “It’s a new world. It’s the same Constitution.”

Trump economic polling sinks

Americans are souring on Trump’s economy: Nearly seven in 10 registered voters say they disapprove of how he’s handling inflation, according to a new Financial Times poll. Consumer data could explain why: Majorities of Americans report they’ve cut back on spending — on entertainment and extras, but also on groceries. About 40% said they’ve cut back on driving. And Trump faces potentially more bad economic news this week, with fresh inflation data due Wednesday; economists expect annual inflation to rise to 4%, the highest rate in three years. Last week’s stronger-than-expected jobs report is a rare bit of good news for the White House, but the data is intensifying speculation over whether the Federal Reserve will raise interest rates ahead of the midterms, the biggest political test of the year.

— Lauren Morganbesser

Politico winds down E&E News

Politico is sunsetting an energy spinoff brand, E&E News, that it purchased six years ago, scoops Semafor’s Max Tani. Politico plans to launch a series of energy-focused newsletters in September instead. One product, called Surge, will track how rising energy demand driven largely by AI is reshaping politics and business in North America and Europe. Another, called State Power, will focus on the minutiae of state energy policymaking. The company will also revamp existing newsletters like Morning Energy and Morning Environment. “Energy has become the story behind almost every major story, whether that’s AI, geopolitics, manufacturing, or national security,” Politico global editor-in-chief Jonathan Greenberger told Semafor in an email. “Energy policy used to be a specialty beat. Today it’s a central driver of economic, technological and geopolitical power, and we’re connecting those dots in a way only Politico can.”

White House

• The Kennedy Center removed President Trump’s name from its website a week after a federal judge ordered the restoration of its title, though Trump’s name remains on the front of the venue.
• Trump renewed his call for Senate Majority Leader John Thune to oust the Senate parliamentarian.

Economy

• The war in Iran could slow US economic growth by 1.2%, according to a new report by the Peterson Institute for International Economics.
• Prices for urea, a key component in fertilizer, dropped to the lowest level since Feb. 6, after the Iran war caused prices to spike.

Congress

• A congressional air safety bill is facing bipartisan backlash over a provision that would make it easier for private jet owners to avoid paying state and local taxes.

Courts

• A federal judge reversed his decision to order the Trump administration to return a Colombian woman who was deported to the Democratic Republic of the Congo.
• The Trump administration said it is seeking to strip the citizenship of 17 immigrants.

Outside the Beltway

• SoFi Stadium workers in Los Angeles have voted to authorize a strike ahead of the World Cup, citing pay, job security, and concerns about immigration enforcement as the venue prepares to host the first US match next week.

National Security

• The Pentagon removed “Christian” labels from its military religious categories after objections from Mormon lawmakers.
• The Pentagon expanded its blacklist of Chinese firms by designating Alibaba, BYD, Baidu, and other Chinese companies as entities linked to China’s military, potentially restricting their access to American money, technology, and government contracts.

Technology

• PepsiCo has 41 driverless trucks on the road in Arizona, Texas, and Arkansas, making it the first major US consumer goods company to disclose the use of autonomous trucks on public roads.

World

• The Africa Centres for Disease Control and Prevention said the current Ebola outbreak is spreading more rapidly than any other Ebola outbreak in history.
• Chinese leader Xi Jinping called for strengthened “strategic coordination and cooperation” with North Korea while visiting the country for a summit with North Korean leader Kim Jong Un.

— Senate Minority Leader Chuck Schumer, in reference to the New York basketball team whose game President Trump and New York City Mayor Zohran Mamdani are set to attend tonight.

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