The House approved the budget with a 218-214 vote, indicating a narrow margin. Two Republicans, Brian Fitzpatrick (PA) and Thomas Massie (KY), crossed the aisle to vote with Democrats. Freedom Caucus: Despite "big, bold words on the budget and the deficit," the Freedom Caucus "folded like a lawn chair," Speaker Mike Johnson (R-LA) is largely seen as having played a limited role in shaping the final legislation or bringing holdouts into line.

Multiple groups, including the Women's March, planned "at least 200 events" across the country on Independence Day, similar in scale to "No Kings Day." The protests focus on "freeing the United States from rule by and for billionaires" and correctly anticipated Trump signing the budget bill.

OBBB: Winners:

Multimillionaires & Wealthy Americans: "the ability to pass more wealth on to their heirs and dodge a tax increase."

Residents of High-Tax States: The state and local tax (SALT) deduction limit increases to $40,000 annually for five years,

Small Business Owners: The 2017 pass-through business deduction (up to 20% of qualified business income) is permanently extended.

Private Equity & Fossil Fuel Producers: the maintenance of the carried interest tax break for private equity and new requirements to open federal land for drilling

Domestic Car Dealers & Manufacturers: a tax deduction for loan interest on US-made cars,

Elderly and Tipped Workers: taxpayers 65 and older receive a larger standard deduction, and tips and overtime pay are exempted from income taxes. very few people will actually benefit

Telecommunications, Corporations, Defense Contractors, Space Industry: spectrum auctions, rejection of certain tax increases for big business, increased defense spending, and funding for space projects.

Loosers:

Low-Income Americans: Renewable Energy & EV: Elite Universities: Immigrants

"Big Bill" Passage and Political Arm-Twisting: Donald Trump is pushing hard for the passage of a significant bill by his self-imposed July 4th deadline. Despite strong opposition from the House Freedom Caucus (FC), it appears Trump will get his wish. The method of securing the FC votes is unclear but could involve "a few threats from Trump" or "goodies" offered by Johnson. Given the lack of time for a conference committee and reconciliation limits, any deal might involve "some sort of action Trump promised to take in the FCers' home states" or Trump not taking punitive actions against "recalcitrant members."

"No Tax on Tips Provision" and its Limitations: The Senate version "put a maximum of $25,000 on the amount of income that could be excluded."

The Department of Justice (DoJ) is reportedly expanding its denaturalization program beyond undocumented immigrants to include naturalized citizens, even for actions that are otherwise legal.

Decline of Moderatism: The idea that a "centre cannot hold" in American politics is reinforced by recent retirements and the increasing tribalism.

Several Senate seats are opening up, with potential for more, shaping the 2026 electoral map.

Trump's "Anti-Musk" Strategy: Donald Trump is launching a new Super PAC, "Full Support for Donald" (FSD PAC), to counter Elon Musk's potential influence and build his own network of billionaire donors. "Trump doesn't trust Musk."

A new Pew report, based on interviews with 9,000 voters, indicates that if all non-voters had participated in 2024, "Trump's 2024 margin would have been 3% instead of 1.5%." This suggests non-voters are "actually lazy secret Republicans." Supporting Studies: A 2020 Stanford study found that making voting easier did not benefit either party, with additional voters "roughly evenly split."

The Supreme Court's recent ruling in Trump v. CASA, Inc. significantly curtails the ability of district courts to issue nationwide (or "universal") injunctions. This decision, delivered on the "shadow docket," represents a major victory for the Trump administration and has profound implications for future challenges to executive actions.

The Senate is poised for a floor vote on the "giant MAGAbill" following a 51-49 party-line vote to advance it. The legislative process has been marked by last-minute compromises, internal party dynamics, and delaying tactics.

Sen. Tillis (R-NC) announced his retirement in 2026 after being "pummeled" by Donald Trump for opposing the MAGAbill.

New polling shows Sen. Susan Collins (R-ME) with "only 14% of Mainers view[ing] Collins favorably

"Overpromise and Underdeliver" as a Core Tenet of Trump's Political Style: The source repeatedly highlights Donald Trump's tendency to "set lofty goals," but then run into problems when "the goals are TOO lofty, or if success causes you to double-down and overstep, or if you simply won't or can't admit it on those occasions where you came up a little short." This is seen as a defining characteristic of his political career and personal life.

Senate Parliamentarian Elizabeth MacDonough ruled that "most of the Medicaid provisions cannot be passed via reconciliation" because they are "fundamentally about policy, not about the budget." This significantly complicates the bill's passage and makes permanent tax cuts impossible via this route, also threatening to "cause the deficit to explode." SALT Deductions: Public Lands Sales:

Grandiose Claims vs. Reality: After ordering an attack on Iran, Trump "made the grandiose pronouncement that Iran's nuclear program was 'obliterated.'" This claim was, and remains, inconsistent with reality. An ineffective one-and-done attack looks bad if Iran recovers quickly or becomes nuclear. A second attack risks "dragging the U.S. into" a prolonged conflict. Despite past condemnations of Obama's Iran policy, the Trump administration appears to be considering "Diplomacy, aided by goodies to make it worth the Iranians' while," including "freeing up $30 billion in frozen Iranian funds" to redirect their nuclear program toward civilian use, mirroring the Joint Comprehensive Plan of Action.

Kilmar Abrego Garcia, unlawfully deported to El Salvador and then returned, has become a symbol of the administration's aggressive legal tactics. "Thin" Indictment: Garcia faces criminal charges for transporting alleged undocumented immigrants, but the indictment is "rife with irrelevant, highly inflammatory allegations" like transporting weapons or physical abuse, for which "there are no charges." he indictment led to the resignation of Ben Schrader, chief of the criminal division in the Nashville U.S. Attorney's office, who reportedly quit due to "concern the case was being pursued for political purposes." The source suggests "if there is evidence that the DoJ misled the grand jury or misrepresented the facts," the judge could dismiss charges and sanction the government and Bondi. The indictment contains a "serious misstep" by contradicting the police report from the 2022 traffic stop, alleging Garcia lied about being in Texas when the report states he told the THP he was driving from Houston. This points to "shoddy" work and potentially "intentional misrepresentation to the grand jury."

The Los Angeles Dodgers were caught between wanting to avoid antagonizing the President and their large Latino fanbase amid anti-ICE protests. Their initial "silence... spoke volumes." ICE's Misstep: The administration, or someone like "Stephen Miller," "decided to press the advantage" by dispatching ICE vehicles to Dodger Stadium, forcing the team to take a side.

Threat to Major Sporting Events (World Cup 2026, Olympics 2028):Miami Club World Cup Incident: ICE's announcement of patrols requiring proof of legal residency at an Inter Miami soccer game (featuring Lionel Messi) caused "ticket prices crashed."

Trump's NATO Engagement and Diplomatic Strategy

Iran: US Bombing, Democratic Disunity, and Potential Regime Change. Democrats have struggled to form a unified front. House Minority Leader Hakeem Jeffries (D-NY) criticized the unilateral nature of the strike, stating, "No president should be allowed to unilaterally march this nation into something as consequential as war with erratic threats and no strategy." However, former #2 Democrat Rep. Steny Hoyer (D-MD) contradicted this, calling the strike "essential to preventing Iran from developing a nuclear weapon."

Senator J.D. Vance has outlined the "Trump Doctrine" as having three components: Clear American interest: The president identifies a specific American interest, such as preventing Iran from developing nuclear weapons. Diplomacy first: The initial approach to solving the problem is diplomatic. Overwhelming military power and withdrawal: If diplomacy fails, overwhelming military power is used, followed by immediate withdrawal.

Politicization of Intelligence under DNI Tulsi Gabbard

Trump's administration is reportedly accelerating efforts to deport "hundreds of thousands of immigrants," specifically targeting those who "entered the country illegally and then applied for asylum while in the country," a violation of asylum protocol.

The "One Big Beautiful Bill Act" (BBB): Challenges and Public Perception. The "One Big Beautiful Bill Act" (BBB) faces significant hurdles in Congress and is widely unpopular with the public. The White House, however, has released "Wildly Optimistic Growth Projections for Megabill." The Council of Economic Advisers (CEA) claims the "One Big Beautiful Bill Act" would increase real GDP by "4.6% to 4.9% over the next four years," create "6.9 to 7.2 million jobs," and raise wages by "$4,000 to $7,200 per worker." the Committee for a Responsible Federal Budget stated, "Just so we all understand, the CEA numbers are ridiculous." Jessica Riedl of the conservative Manhattan Institute similarly called them "absurd," noting that "Not even conservative economic modelers come within miles of these growth and savings estimates because they just do not make sense."

The recent New York City Democratic mayoral primary saw a significant upset, with Democratic Socialist Zohran Mamdani securing the nomination over former Governor Andrew Cuomo. This outcome highlights several important political trends and potential future impacts.

Recent events indicate a turbulent period for the Trump administration regarding its handling of Iran, marked by perceived missteps and a lack of strategic success.

Social Security Insolvency Imminent: A major, yet overlooked, issue connected to the budget is the status of Social Security. The Social Security trust fund is now projected to run out of money in 2034, one year earlier than previously expected. Consequences of Inaction: If no changes are made, benefits will not end entirely but will face a significant cut of "about 25%."

Financial market data points to a bearish trend in bond rates and evolving expectations for interest rate cuts, with key dates for "reality checks." July 8th: The "Reciprocal tariff pause ends," July 15th: The next "reality check" for rate cut expectations will come with "inflation being reported.