Good morning. President Trump has pledged that " all agencies of our government" will move to assist Venezuela following deadly earthquakes that have killed hundreds of people, possibly many more.

Defense Secretary Pete Hegseth, meanwhile, has been meeting with lawmakers about securing $350 billion for the military through an uncertain budget maneuver. This is part of the $1.5 trillion Pentagon budget he wants. And he wants another $67 billion related to Iran and other urgent military needs.

After a brief dalliance with austerity in 2025 (remember DOGE), the White House is on an attempted spending spree. The Iran war has cost billions and the White House wants to urgently replenish its military stockpile while upgrading its fleet for the future.

The Congressional Budget Office projects the U.S. government will run a $1.9 trillion deficit in 2026 and 2027 before bumping up to a $2.1 trillion deficit in 2028. This is the gap between federal spending and tax revenue, and the government borrows money (by issuing debt) to cover this difference. Trump promised to slash the deficit (all presidents do), but it continues to grow.

The reasons for this aren't so complicated. It's much easier, politically, to spend money and cut taxes than cut spending and raise taxes. Those are the gravitational forces. And then things happen. COVID. A financial crisis. An earthquake. And Washington responds. And the debt continues to grow.

This is an edition of the Politics newsletter, bringing you an expert guide to what's driving D.C. every day. If you're not subscribed, sign up here.

People and Policies I'm Watching

Leon Black: The private-equity investor appears before the House oversight committee over his links to Jeffrey Epstein.

Trump's Friday: The president is scheduled to hold a policy meeting at 10:30 a.m. ET, receive his intelligence briefing at 11 a.m., deliver remarks at the Faith & Freedom Coalition's 2026 policy conference at the Washington Hilton at 1:30 p.m., hold a policy meeting at 3:30 p.m., participate in signing time at 4:30 p.m. and hold a RNC reception at the White House at 7:30 p.m.

What I'm Following

After largely snubbing Congress, Hegseth now needs them. The defense secretary has largely ignored Congress for much of his tenure as Pentagon chief, testifying only occasionally in hearings that often turn contentious and frustrating. Hegseth is struggling to secure Republican support to pass a part of the administration's unprecedented $1.5 trillion military budget using an expedited process called budget reconciliation.

The Supreme Court allows Trump to end humanitarian protections for many immigrants. In a 6-3 ruling, justices concluded courts have little power to review the executive branch's decisions about the immigration program at issue, known as Temporary Protected Status. The high court's decision means the administration can immediately terminate TPS benefits for about 350,000 people from Haiti and 6,000 people from Syria.

America's Bahrain naval base was severely damaged by sustained Iranian attacks. Satellite imagery shows for the first time the extent of what Iran destroyed at Naval Support Activity Bahrain. Hit hard were the command headquarters and at least a dozen other buildings, along with two satellite communications terminals.

What Else Is Happening

   -- Florida's immigration-detention center known as "Alligator Alcatraz" is 
      closing, Florida Gov. Ron DeSantis said. 
 
   -- A top Justice Department official has told antitrust enforcers he prefers 
      they stop taking cases to trial and instead seek to settle them. 
 
   -- Iran thinks it can make billions of dollars from the Strait of Hormuz as 
      the regime positions itself to manage the global oil artery. 
 
   -- The U.S. Army will lease land on bases for critical mineral production, 
      part of the Trump administration's push to establish a domestic supply 
      chain. 
 
   -- The most outlandish claims of fraud and luxury good purchases in the 
      government's sweeping indictment this week of $6.5 billion worth of 
      alleged healthcare fraud. 

What I'm Reading

   -- Federal Judge Says Raleigh Resident's Deportation 'Boggles the Mind,' 
      Orders Return (Raleigh News & Observer) 
 
   -- After 250 Years, Our American Republic Is Coming Apart (The Federalist) 
 
   -- California's 'First Partner' Targeted by Trump, Newsom Says. Here Is What 
      We Know About Her Career, Finances (Los Angeles Times) 

About Me

I'm Damian Paletta, The Wall Street Journal's Washington coverage chief. I've covered Washington for 22 years as a reporter and editor. I've covered the White House, Congress, national security, the federal budget, economics and multiple market meltdowns.

WSJ Politics brings you an expert guide to what's driving D.C., every weekday morning. Send your feedback to politics@wsj.com (if you're reading this in your inbox, you can just hit reply). This edition was curated and edited in collaboration with Alistair Dawber and Mali Michelle Fleming. Got a tip for us? Here's how to submit.

(END) Dow Jones Newswires

June 26, 2026 06:56 ET (10:56 GMT)

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