Washington, DC

1. Bernie-Bannon AI mind meld
2. Michigan Democratic unity play
3. Cassidy’s Semafor sit-down
4. Bessent plays defense
5. RIP Clarity Act

The share of Republicans that say the economy is better now than a year ago fell from 72% in January to 29% this month, according to a New York Times/Siena poll.

AI safety debate unites Sanders and Bannon

Anxiety over the rising power of AI brought two unlikely figures together today in Washington to call for urgent curbs. Sen. Bernie Sanders, I-Vt., and Steve Bannon, a former adviser to President Donald Trump, shared a stage to push for AI guardrails, as Congress struggles to unite behind any legislative antidotes to AI safety fears. Sanders pledged to introduce a bill next week that will “permanently ban the development of artificial superintelligence,” while imploring Trump to use an upcoming meeting with Chinese leader Xi Jinping to push for an international pause on AI development. Bannon, who offered more skepticism of China, labeled AI executives’ calls for regulation a “bold-faced lie.” He also acknowledged the unlikelihood of congressional action, saying that any regulation would need to come via executive action. That won’t happen anytime soon: His former boss has dismissed calls for guardrails.

— Morgan Chalfant and Ashley Gold

Slotkin, Peters urge fellow Democrats to help El-Sayed

Michigan Democratic Sens. Elissa Slotkin and Gary Peters implored their colleagues this afternoon to help Democratic nominee Abdul El-Sayed in the state’s must-win Senate race, a person familiar with their plans told Semafor’s Burgess Everett. The duo asked the Democratic caucus at its first full meeting since August to help El-Sayed with financial support and fundraising — and Peters and Slotkin encouraged those who still have questions about El-Sayed’s candidacy to join him for a meet-and-greet in Washington later this week. Party unity in Michigan will be critical in the tight campaign against former Rep. Mike Rogers, R-Mich., because Republicans are looking at a potential spending advantage in the state over the final stretch of the general election. “Even if you didn’t vote for Abdul, you need to support up and down the ticket this November,” Slotkin said earlier this month.

Cassidy weighs in on Social Security, vaccine policy

Sen. Bill Cassidy, R-La., discussed the looming Social Security crisis, White House vaccine policy, and the Protect College Sports Act at Semafor’s Future of Health Forum today. Cassidy, a former physician retiring this year, fears the window for Congress to shore up Social Security is closing. “I’m hoping against hope that we can do it. And if not, I’m looking for someone to pass it off to.” He also tied the rise in measles cases to administration policy. He predicted Trump’s Food and Drug Administration pick, Heidi Overton, a critic of the childhood vaccine schedule, would get hearings, but he wouldn’t say if he’d support her. Cassidy described feeling betrayed by health secretary Robert F. Kennedy Jr. over vaccines. He also said he’d back the sports bill if his amendments are adopted.

Bessent defends buybacks and yields rise

Treasury Secretary Scott Bessent defended his bond buybacks at a House hearing today as 10-year Treasury yields climbed to their highest levels since 2007. Yields crossed 5% for the first time since the global financial crisis, a point Democrats pressed on Bessent while questioning the efficacy of the program. “There’s a counterfactual of, ‘what would it have done,’” Bessent responded, suggesting the spike could have been worse. Bond yields tracked rising crude prices today, which reached $108 per barrel as investors worry about the closure of Saudi Arabia’s oil pipeline amid the widening Iran war. The combination of rising yields and oil prices is sure to add pressure on the Federal Reserve to raise interest rates when it meets tomorrow. Fed watchers put the odds of a hike at 92%.

Crypto industry’s top legislative priority implodes

The cryptocurrency industry just lost the lead of a lifetime. Just last year, banks were so terrified of digital asset companies’ war chest that they scrambled to overhaul their own lobbying. But today, senators failed to advance the firms’ top legislative priority, shrugging off the threat of tens of millions of dollars that still could hit them this fall. Trump’s crypto adviser had hoped for GOP unity, but even that couldn’t materialize, as baked-in allegiance to banks drove three Republicans to vote no; all Democrats voted no out of concern the bill wouldn’t rein in Trump. Odds are high lawmakers won’t take up another permanent overhaul of crypto regulation until Trump leaves office. “The amount of money the crypto industry spent on lobbying firms for such a staggering defeat would have been better spent curing cancer,” one lobbyist told Semafor after the vote.

White House

• President Trump criticized justices he appointed to the Supreme Court over rulings on mail ballots, tariffs, and birthright citizenship, calling them “merely a shell of their original selves.”

Congress

• Senators grilled FBI Director Kash Patel on reports of the bureau loosening hiring requirements.
• Rep. Thomas Massie, R-Ky., introduced articles of impeachment against Defense Secretary Pete Hegseth and indicated he’ll try to force a vote.

Campaigns and Elections

• President Trump is pushing forward with efforts to control elections despite a loss at the Supreme Court yesterday. — NYT
• The Cook Political Report shifted the Senate race in New Hampshire from “leans Democrat” to “toss-up.”

Courts

• The board of the Kennedy Center for Performing Arts voted to close the venue after a judge ruled they could not etch a tribute to President Trump into the facade of the building. Trump posted to Truth Social that the facility will remain shut down until the judge relents.

National Security

• The nonpartisan Congressional Budget Office estimated the cost of the Iran war at $38 billion through August 1.
• The White House is preparing a multibillion-dollar sale of 2,000-pound bombs to Israel, the largest such transfer in recent years. — WaPo
• The US military is shifting funding from Europe to countries aligned with President Trump in Latin America. — AP

Immigration

• Immigration and Customs Enforcement is quietly firing some new hires, citing “red flags” that should have been caught earlier. — WaPo

— House Speaker Mike Johnson on AI fears.

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, Ashley Gold, Eleanor Mueller, Shelby Talcott, Nicholas Wu, David Weigel, David Lim