Washington Edition

This is Washington Edition, the newsletter about money, power and politics in the nation’s capital. Every Monday, Bloomberg Intelligence senior analyst Nathan Dean gives his insights into what’s been happening and what’s coming up in the nooks and crannies of government and markets. Sign up here and follow us at @bpolitics. Email our editors here.

Status Report

Whether you’re the person who comes to work wishing the weekend was longer or a parent happy to be back behind the desk, many of my clients use Monday mornings to check in on the state of play in Washington.

Today’s questions had two themes: “When will Senators release their views on the ‘One Big Beautiful Bill?’” and “Will the Senate amend Section 899?”

On the first, Bloomberg News’s Erik Wasson has your update here – and I’m telling clients to watch for bill language Thursday or Friday.

On the second, I bet you’re wondering, what’s Section 899? Also known as the revenge tax, it’s a provision that would increase tax liabilities for foreign investors whose home countries are deemed as a “discriminatory foreign country.”

And let’s just say non-US companies do not like this one bit. I’ve had calls from London, Singapore and Zurich. For those of you with the Bloomberg terminal, my colleague Andrew Silverman has his analysis here saying banks and tech firms are likely among the most impacted, but US technology companies could see the greatest disinvestment if firms withdraw from the US.

As to whether the Senate will pull it, Andrew and I are leaning towards it being watered down. Senate Majority Leader John Thune is looking at it.

In the crypto space, the House Financial Services committee tomorrow will be working on the CLARITY Act, a bill setting out how the SEC and CFTC oversees crypto. I still think — maybe out of consensus — that it can pass (link for Bloomberg terminal subscribers), but wait for the first half of 2026.

And as we await a Senate floor vote on the stablecoin bill called the GENIUS Act, check out Bloomberg Crypto’s interview with Senator Cynthia Lummis. Interestingly, she also said her own bill to push the US to buy 1 million Bitcoin may not get a vote this year.

Tidbits

If you are flying out of DCA on June 14, be warned, the airport is set to shut for a significant number of hours Saturday evening due to the Army’s 250th Anniversary Celebration.
Bloomberg Intelligence, Bloomberg Economics, and Bloomberg Market Specialists are coming together for a webinar June 12 at 10:00 a.m. Eastern on tariffs. If you are interested, here’s the link.
I know most Washingtonians think Tysons Corner is rural Virginia, but it looks like Eataly and Din Tai Fung are coming to the mall in the near future. Potentially replacing the American Girl Doll Store. My daughter’s pain is Dad’s gain. — Nathan R. Dean

Don’t Miss

The Pentagon is mobilizing 500 active-duty Marines to help reinforce the National Guard in Los Angeles, an escalation in force from President Donald Trump in response to protests there.

California is suing the Trump administration for deploying the state’s National Guard in Los Angeles to quell unrest over the president’s immigration raids.

Health and Human Services Secretary Robert F. Kennedy Jr. said he’s reconstituting the committee of that advises the government on vaccines and “retiring” the 17 current members of the panel.

Trade talks between the US and China will continue into a second day, as the two sides look to ease tensions over shipments of technology and rare earth elements.

Trump’s signature trade policy is threatening to backfire by upending another one of his top priorities: the revival of US manufacturing and the American Rust Belt.

Consumers’ expectations for future price pressures improved across all horizons in May, and households’ pessimism about the labor market somewhat eased, according to a Federal Reserve Bank of New York survey.

Trump said Iran was pressing to be allowed to enrich uranium in a potential nuclear deal with the US, expressing worry that Tehran was seeking too much.

More than 20 million eggs sold to retailers including Walmart and Safeway have been recalled after 21 people were hospitalized with salmonella, the Food and Drug Administration said.

The proposed Golden Dome space-based missile defense shield could be an opportunity for the Space Force to gain relevance and funding, with estimates suggesting it could cost $542 billion over 20 years.

Federal employees ordered back to their offices are now temporarily welcome to work from home to make way for parade preparations as the US Army marks its 250th birthday in Washington on Saturday.

Watch & Listen

Today on Bloomberg Television’s Balance of Power early edition at 1 p.m., hosts Joe Mathieu and Kailey Leinz interviewed Nazak Nikhahtar, former assistant secretary for industry and analysis at the International Trade Administration, about the US-China trade talks.

On the program at 5 p.m., they talk with Republican Representative Darrell Issa of California about about the clashes between protesters and law enforcement in Los Angeles.

On the Big Take podcast, Tony Award-winning producers, Daryl Roth and Lucas Katler, about what it takes to succeed these days in show business, and Bloomberg Pursuits’ Chris Rovzar discusses what Broadway’s new economic reality means for tourism, for art and for what audiences pay at the box office. Listen on iHeart, Apple Podcasts and Spotify.

Chart of the Day

Home-price growth turned negative month-over-month in May for the first time since 2012 — excluding pandemic era swings from the Covid shutdown — according to data from ICE which tracks millions of transactions across the US. Condos are driving the downturn with prices declining nearly a full percentage point from the same time last year. Single family residences are holding onto a modest 1.7% gain from last year. Overall, around 30% of all major home sales markets have seen prices fall by at least a percentage point. In seven markets: Austin, Cape Coral, North Port, San Francisco, Phoenix, San Antonio, and Boise City prices are down by more than 5%. And since the peak in 2022 the Austin Texas market is down 19.2%, Cape Coral and North Port, Florida are down 12.1% and 10.2%, respectively and San Francisco prices have declined by 8.3%. — Alex Tanzi

What’s Next

Defense Secretary Pete Hegseth is set to testify at the House Appropriations Committee on Tuesday, the Senate Appropriations Committee Wednesday and House Armed Services on Thursday.

The consumer price index for May will be reported Wednesday.

Treasury Secretary Scott Bessent testifies Wednesday before the House Ways and Means Committee and Thursday at the Senate Finance Committee.

The producer price index for May will be released Thursday.

Initial jobless claims for the week ending June 7 will be released Thursday.

The preliminary June reading of consumer sentiment from the University of Michigan will be released on Friday.

Retail sales for May will be reported June 17.

Industrial production in May also will be released on June 17.

Housing starts and building permits in May are released June 18.

The Federal Reserve issues its interest rate decision on June 18.

The 90-pause for Trump’s reciprocal tariffs on most counties is scheduled to end on July 8.

Seen Elsewhere