Washington, DC

1. Trump saber-rattles
2. GOP bygones
3. Fight night in Michigan
4. Recess canceled?
5. AI ads bill

Nvidia shares ▼ 5% on news of its $250 billion backstop for OpenAI’s data center project.

Trump threatens fighting as peace talks unfold

President Donald Trump is saber-rattling through a pause in fighting with Iran. Today he acknowledged that the two countries are in talks, while warning in an interview with Axios that peace is not guaranteed: “If they don’t work out, we will go back to very strong military action,” Trump said. The US has suspended strikes on Iran for the past three nights, after regional allies encouraged a break in fighting. But clashes have continued between the Iran-backed Houthis in Yemen and the Saudis, risking a return to full-blown conflict after a four-year truce. Oil fell on news that the US has suspended its attacks, but substantial uncertainty remains in energy markets as the future of the Strait of Hormuz remains in doubt, and as the Houthis attack ships heading for Saudi ports in the Red Sea.

Republican appears on same stage as Trump after voting to end Iran war

Trump has railed against Republicans who voted for Democratic-led resolutions to rein in the war in Iran. But one of those lawmakers, Rep. Tom Barrett of Michigan, appeared on stage in Milford, Michigan, this afternoon —just before the president. Barrett talked up the tax break on tips and other provisions from the GOP domestic policy megabill that Republicans hope will help them keep the majority this fall, and promised to “fight to just restore basic common sense back to our country.” Barrett, who represents a Lansing-area swing district, has justified his war powers votes by saying the president needs to seek military authorization from Congress. Trump’s visit also comes just a week before Michigan’s primary. Democrats see Barrett’s district as a top pickup opportunity, and a crowded field of candidates is vying to take him on.

— Nicholas Wu

Michigan holds final Democratic primary debate

Democrats will have some stage-sharing drama in Michigan tonight, too, as the two remaining Senate primary candidates face off in a debate hosted by a local Fox affiliate at 7:30 pm. The race, now in its homestretch, has become a microcosm for the Democratic Party’s civil war. Abdul El-Sayed, a staunch critic of Israel backed by Sen. Bernie Sanders, I-Vt., is competing against Rep. Haley Stevens, a top recipient of AIPAC money who has been endorsed by Democratic establishment heavyweights like outgoing Sen. Gary Peters, D-Mich., and Michigan Gov. Gretchen Whitmer. Today, Politico published leaked audio of El-Sayed telling supporters that if he wins he’ll immediately turn to primarying other Democrats, like Sen. John Fetterman in Pennsylvania. Some Democrats seized on El-Sayed’s remarks, calling him more interested in fighting Democrats than Republicans. El-Sayed’s campaign said his criticisms were metaphorical.

Thune not swayed on canceling recess for voter ID bill

Senate Majority Leader John Thune splashed cold water on canceling the August recess to work on the SAVE America voter ID bill this afternoon, saying that he needs to be shown “a path to passage” to be convinced otherwise. “We could stay here until Christmas and the Democrats aren’t voting for this. And Republicans are not getting rid of the legislative filibuster,” Thune said. Notably, Thune left the door open to process a college sports deal, crypto market structure legislation, or even the House-passed budget resolution if they have paths to success. But there doesn’t seem a groundswell for Trump’s push to cancel recess for SAVE. “Whenever the Senate’s going to be in session, I’m going to be here. But just think of what we’ve got to do,” Sen. Chuck Grassley, R-Iowa, told Semafor, listing government funding and Cabinet nominations. “Let’s work on that.”

— Burgess Everett

Senate Democrat proposes AI ad restrictions

A flood of paid, unlabeled influencer marketing and AI-produced political ads has prompted a Senate Democrat to look at new restrictions on political advertising online, scoops Semafor’s Max Tani. Today, California Sen. Adam Schiff introduced two new bills that would attempt to illuminate who is paying influencers for political speech online and restrict AI-generated likenesses of politicians. The Promoting Authenticity with Influencer Disclaimers Act would require labels on some posts from influencers paid for by political committees. The other bill, the AI Ads Act, would update existing rules that ban impersonation of candidates to include AI-generated content. The bills are Schiff’s reaction to ad spending in two recent primary contests in his home state. As the midterm elections kick into gear, Americans’ social feeds will be flooded with political videos, and it may be hard for them to tell which ones are paid partnerships.

White House

• The Trump administration has halted new federal transit grant agreements, leaving billions of congressionally approved dollars unspent and transportation projects delayed. — NYT

Congress

• Republican Sen. Mitch McConnell said in a statement that he would not attend an annual Kentucky political event this weekend, with his doctors saying he remains in a rehabilitation facility and has not yet been medically cleared to return to work.

National Security

• The Trump administration’s military strikes on alleged drug trafficking boats have not reduced the amount of cocaine entering the US, and have led criminal organizations to develop new workarounds. — WaPo

Economy

• Major US companies are resuming hiring as more executives believe AI can complement, rather than replace, human workers. — WSJ

Technology

• Meta secured massive tax breaks and a fast-tracked $50 billion Louisiana data center through secret negotiations. — NYT
• Nvidia is investing in former OpenAI chief scientist Ilya Sutskever’s secretive AI lab. — WSJ

World

• Britain’s new prime minister, Andy Burnham, hosted Ukrainian President Volodymyr Zelenskyy as his first international visitor.

Outside the Beltway

• Police records indicate that officials temporarily separated former Transportation Secretary Pete Buttigieg from his children based on a vague and unsubstantiated allegation. — WaPo

— Michigan Democratic Senate candidate Abdul El-Sayed, in leaked remarks about using primary challenges to pressure Democrats including Sen. John Fetterman, D-Pa.

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