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Judge quashes Justice Department subpoena of Federal Reserve in blow to investigation

A federal judge on Friday quashed Justice Department subpoenas issued to the Federal Reserve in January, a severe blow to an investigation that has already attracted strong criticism on Capitol Hill.

Judge James Boasberg said that a “mountain of evidence suggests” that the purpose of the subpoenas was simply to pressure the Fed to cut its key interest rate, as President Trump has repeatedly demanded.

Fed Chair Jerome Powell revealed the investigation Jan. 11, prompting Senator Thom Tillis, a North Carolina Republican to block consideration of Trump’s pick to replace Powell as Fed chair when his term expires May. 15.

Rugaber writes for the Associated Press.

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Federal distrust prompts some Democratic states to protect polling places, election records

Democratic-led states alarmed by the prospect of federal immigration officers patrolling the polls during this year’s midterm elections are taking steps to counter what they see as a potential tactic to intimidate voters.

New Mexico this week became the first state to bar armed agents from polling locations in response to President Trump’s immigration crackdown, a step being considered in at least half a dozen other Democratic-led states.

The moves highlight a deep distrust toward the Trump administration from blue states, which have been the target of his aggressive immigration tactics while threatened with military deployments and deep cuts in federal funding. Their concerns were heightened after the president suggested he wants to nationalize U.S. elections, even though the Constitution says it’s the states that run elections.

The Trump administration said it has no plans to deploy immigration agents to polling locations. Last month, the heads of Immigration and Customs Enforcement and Border Patrol told a congressional committee “No, sir” when asked if they had any plans to guard polling places. The Department of Homeland Security’s deputy assistant secretary for election integrity, Heather Honey, recently told secretaries of state it “is simply not true” that immigration agents will be at the polls this year.

But a group of eight secretaries of state wants that in writing from the nominee to succeed Kristi Noem as secretary of the Department of Homeland Security. In a letter Monday to Trump’s new pick to lead the agency, Markwayne Mullin, the group pressed for assurances “that ICE will not have a presence at polling locations during the 2026 election cycle.”

Federal law already prohibits the deployment of armed federal forces to election locations unless “necessary to repel armed enemies of the United States,” but Democratic lawmakers, election officials and governors remain concerned.

“The fear is that the Trump administration will attempt to evoke a national emergency or execute some other deployment of federal agents or military troops in order to interfere with elections and intimidate voters,” said Connecticut Democratic state Rep. Matt Blumenthal, co-author of a state bill to establish a 250-foot buffer from federal agents at local polls and other restrictions on federal intervention. “And we’re not going to let that happen.”

A potential clash between states and the federal government

Other bills seeking to ban immigration agents at the polls are pending in Democratic-led states, large and small, from California to Rhode Island.

In Virginia, lawmakers are weighing legislation that could prevent federal civil immigration officials from making arrests within 40 feet of any polling place or courthouse. But the provision on polling sites remains under negotiation, and it’s unclear whether it will be in the final bill.

The newly signed law in New Mexico prohibits orders that put any armed person in the “civil, military or naval service of the United States” at local polling locations and related parking areas, or within 50 feet of a monitored ballot box, from the start of early voting.

Under New Mexico’s new law, which takes effect in May and will be in place for the state’s June 2 primary, people who experience intimidation or obstruction at the polls from federal agents or military personnel can file a civil lawsuit seeking relief in state courts. State prosecutors and local and state election officials also can sue, and the courts can apply fines of up to $50,000 per violation.

It also prohibits changes to voting qualifications and election rules and procedures that conflict with New Mexico law, as Trump prods the U.S. Senate to approve a bill to impose strict new proof-of-citizenship requirements in elections nationwide.

Any state measures intended to counter federal election law will face legal hurdles because of the supremacy clause in the U.S. Constitution, which says federal law supersedes state law.

“It could set up a direct clash between state governments and the federal government. We don’t know exactly how that’s going to go,” said Richard Hasen, director of the Safeguarding Democracy Project at the UCLA School of Law. “Given the supremacy clause, there’s only so much states can do.”

‘We will hold free and fair elections’

New Mexico Gov. Michelle Lujan Grisham said her own distrust of the Trump administration in election oversight stems from ongoing Department of Justice efforts to get detailed state voter data without explaining why and Trump’s continuing false claims of widespread fraud in the 2020 presidential election.

“Do I believe the federal government and people in the White House? No,” said Lujan Grisham, who terms out of office at the end of 2026.

“We are sending a message to everyone: We will hold free and fair elections, and New Mexicans will be safe in every ballot location and that’s our responsibility,” the Democrat said Tuesday during a news conference. “The Constitution says the states run their elections, and that bill makes that painfully re-clear to the federal government.”

Federal seizure of ballots and election records is a growing concern

New Mexico Republicans, who are in the minority in the legislature, voted in unison against the bill.

“I would question strongly why we have to do this other than just to have to poke the president in the eye,” state GOP Sen. Bill Sharer of Farmington said during floor debate.

State Sen. Katy Duhigg, an Albuquerque Democrat who was a co-sponsor of the legislation, said it’s “better safe than sorry with democracy.” She said she wanted to “make sure that there was some sort of tool that our local law enforcement would have at their disposal if something does happen, if the federal government does in some manner try to interfere with our elections.”

Connecticut’s bill, scheduled for a hearing later this week, also takes aim at federal attempts to seize ballots or other election material. It would require that state officials receive notification of such a move.

Blumenthal said state lawmakers can’t prevent seizures such as the January search by the FBI on an election center in Fulton County, Ga., a Democratic stronghold that includes Atlanta. But he said, “there might be an opportunity for our state attorney general’s office or the secretary of the state’s office to challenge that.”

Lee and Haigh write for the Associated Press. Haigh reported from Hartford, Conn. AP writer Oliva Diaz in Richmond, Va., and David A. Lieb in Jefferson City, Mo., contributed to this report.

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Lawmakers vent frustration over Homeland Security shutdown as lines grow at nation’s airports

Republican and Democratic senators vented their frustrations with the lack of progress in funding the Department of Homeland Security, which is resulting in more Americans enduring long lines at airports around the country. It’s a problem that is expected to intensify as the impasse enters its fourth week.

Democrats stressed they were willing to fund some of Homeland Security, but not Immigration and Customs Enforcement as well as Customs and Border Protection, without changes in their operations. Republicans made clear that some of the Democratic demands were a non-starter. The result was that each party blocked the other’s proposal for temporarily resolving the standoff during an hours-long debate Wednesday on the Senate floor.

The stark divide over a shutdown that began on Feb. 14 was acknowledged by members on both sides of the political aisle.

“We are in a negotiation. However, we are not close,” Sen. Brian Schatz (D-Hawaii) said at one point. “You may think this is some issue that we think we’re going to turn to our political advantage, but I promise you, when we saw Renee Good and Alex Pretti killed, this became an issue that was beyond politics.”

“And there are a lot of us who are not going to provide resources to this agency that is acting in such a ways that makes citizens of the United States so unsafe.”

Some Republicans were just as adamant that they oppose some of the changes Democrats are seeking to make.

“Let me be clear, we are going to do nothing — nothing — that kneecaps ICE’s ability to enforce our immigration laws,” said Sen. Eric Schmitt (R-Mo.).

Following the longest federal shutdown in the country’s history last year, Congress completed work on 11 of this year’s 12 appropriations bills. Only the bill for Homeland Security remains outstanding.

Democrats are seeking several changes at the department that include prohibiting ICE enforcement operations at sensitive locations like schools and churches, allowing independent investigations into alleged wrongdoing, requiring warrants to be signed by judges before federal agents can forcibly enter private homes or other nonpublic spaces without consent, and requiring agents to wear identification and remove their masks.

A push for more talks

Senate Majority Leader John Thune (R-S.D.) said his side has made repeated overtures to Democrats on a funding bill. He said the last offer on Homeland Security funding came from the White House nearly two weeks ago and there has been no response from the Democrats.

“Usually, around here, in order to get a deal, there has to be a negotiation where the two sides sit down together,” Thune said. “And my understanding is that has been completely rebuffed by the senator from Washington.”

The senator Thune was referring to, Sen. Patty Murray, the lead Democrat on the Senate Appropriations Committee, said she’s continued to talk with Republican colleagues, but those aren’t “real negotiations.” The White House needs to be at the table for that to occur. She said she needed assurance that Stephen Miller, the influential White House deputy chief of staff, would not upend any agreements that senators reach.

“I am willing to talk to people, but I’m not willing to sit in a room, have coffee, give away a few things and have Stephen Miller override whatever we all agree to,” Murray said. “ … We need to know the White House is serious.”

Homeland Security has been central to President Trump’s sweeping changes in immigration enforcement. Under Trump, the number of people ICE arrests and detains each month has climbed dramatically. The tactics that ICE has employed have generated alarm among Democrats, and some Republicans have also called for a more “strategic” approach.

During bipartisan negotiations earlier this year, appropriators agreed to a Homeland Security funding bill that did include more resources for de-escalation training and $20 million to outfit immigration enforcement agents with body-worn cameras. But that deal unraveled after the Pretti shooting in Minneapolis.

“My side was not going to stand down and say, ‘oh well, nothing happened,’” Murray said.

For the second time in two weeks, Murray offered a proposal to fund all of Homeland Security except for ICE and Customs and Border Protection, but Republicans objected.

Similarly, Sen. Katie Britt (R-Ala.) offered a proposal to fund all of Homeland Security for two weeks so that federal workers could get paid and government operations could continue while the two sides negotiate their differences on immigration enforcement. This time, Democrats objected.

The result was the standoff continues, but lawmakers were at least talking to each other, perhaps one small sign of progress.

Shutdown strains air travel

The large majority of the more than 260,000 employees at Homeland Security continue to work but are going unpaid. It’s the second time in recent months they’ve had to work without pay after last fall’s record, 43-day shutdown. The most visible sign of the shutdown has been a shortage of Transportation Security Administration screeners at airports.

Houston’s secondary airport weathered the worst problems, with lines consistently lasting over three hours for much of Sunday and Monday. Passengers also had to wait more than an hour to get through security at several other airports, including in New Orleans and Atlanta.

Homeland Security in a social media post Wednesday blamed Democrats for a shutdown that “has led to HOURS long security lines at airports across the country, leading Americans to miss their spring break flights.”

Trade groups are also worried about the economic impact of the travel delays. The U.S. Chamber of Commerce called on Congress to quickly approve a funding bill and end the department’s shutdown.

“Blocking operational funding and paychecks for those who help us travel safely is wrong and strains the air travel system,” said Neil Bradley, the business group’s executive vice president and chief policy officer.

Freking writes for the Associated Press.

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Engineer sues L.A. County over Pride flag at government buildings

A Christian engineer with L.A. County claims his bosses discriminated against him by forcing him to pass by a Pride flag on the way to his office, the latest legal challenge to the government’s policy of requiring many government buildings display the flag throughout June.

Eric Batman, a 24-year veteran of the Department of Public Works, sued the county March 10 for refusing to let him work remotely in June, when the rainbow-striped flag hangs in front of his department’s Alhambra headquarters.

It’s the second lawsuit to target the county’s 2023 policy ordering the raising of the “Progress Pride Flag,” a modified version of the traditional rainbow flag with additional stripes representing people of color and transgender and nonbinary people.

In May 2024, Jeffrey Little, an evangelical Christian county lifeguard, sued the county for requiring he work feet away from the flag. That case, filed by conservative Catholic legal group Thomas More Society, is ongoing.

Batman said he first asked to work remotely for the month of June in 2024 to avoid the flag, which he found “highly offensive,” according to the suit.

A supervisor rejected his request, according to the filing, noting the county was “committed to fostering an inclusive workplace, including for our LGBTQ+ employees.” The supervisor suggested he use another entrance, Batman’s suit claimed.

“They wouldn’t give it to him because the county said ‘Our interest is in inclusivity — regardless of whether or not that includes you,”’ said Daniel Schmid, an attorney with Liberty Counsel, a Christian legal group representing Batman.

Liberty Counsel frequently takes on high-profile plaintiffs who oppose same-sex marriage, including the case of Kim Davis, the Kentucky county clerk who refused to provide marriage licenses to same-sex couples.

A spokesperson for the county’s public works department said she could not comment on the suit as it had not yet been served.

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US Justice Department digs into Iran’s sanctions evasion via Binance

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A probe has been initiated by the US Justice Department into Iran’s use of Binance, the world’s largest crypto platform, to circumvent US sanctions and provide financial backing to terrorist organisations with ties to the IRGC, according to The Wall Street Journal.


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The US DOJ’s examination stems from company documents and accounts provided by individuals familiar with the matter.

Authorities have contacted people with direct knowledge of the Iranian-linked transactions to request interviews and collect evidence, as per the WSJ report.

A monitor appointed by the US Treasury Department has reportedly asked Binance for details on the Iranian transactions, including information about a business partner responsible for a large share of the flows.

At this stage, it remains uncertain whether the investigation targets Binance for any potential misconduct or if it is confined to activity by customers on the platform.

A spokesperson for the company told the WSJ that Binance “categorically did not directly transact with any sanctioned entities”.

This development brings the company back to the centre of US regulatory attention, just months after its founder received a presidential pardon, highlighting persistent challenges in enforcing sanctions within the rapidly evolving crypto and fintech sectors.

Binance founder Changpeng Zhao, widely known as CZ, was pardoned by President Trump back in October.

The investigation reopens scrutiny of the exchange, which pleaded guilty in 2023 to breaching US sanctions and banking laws. That case resulted in a record $4.3bn (€3.7bn) penalty and a requirement for ongoing US oversight.

Under the terms of the 2023 agreement, Binance must actively screen clients for terrorism financing and sanctions breaches, as well as report suspicious activity promptly to authorities.

US congressional inquiry adds pressure

The developments have also drawn attention from Capitol Hill.

US Senator Richard Blumenthal, a senior Democrat on the Senate Homeland Security Committee, opened a formal inquiry last month into Binance’s handling of the Iranian transactions.

Citing the scale of the unreported flows, approaching nearly $2bn (€1.7bn) to sanctioned entities, and the suspension of internal investigators, Blumenthal questioned whether the exchange had met its obligations under US sanctions and banking laws.

He requested detailed records from Binance, which responded by describing media coverage as inaccurate and highlighting its “best-in-class compliance programme”.

The senator later described that reply as evasive and insufficient to address his concerns.

The timing of the US DOJ’s probe coincides with heightened efforts to disrupt financing networks linked to Iran’s IRGC.

Ahead of joint military actions with Israel against Iran, Washington stepped up measures to cut off revenue streams, particularly those involving crypto assets used to repatriate proceeds from oil sales to China.

In January, the US Treasury Department sanctioned two smaller crypto exchanges for moving large sums to digital wallets connected to the IRGC.

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