Today in One Sentence. Senate Republicans blocked a resolution to stop Trump’s war with Iran for the seventh time the Senate confirmed Kevin Warsh as Federal Reserve chair U.S. producer prices rose 1.4% in April and 6% from a year earlier the Trump administration will withhold $1.3 billion in federal Medicaid reimbursements from California the Department of Homeland Security’s inspector general is investigating ICE’s $38 billion warehouse-to-detention program Trump’s Justice Department is discussing whether to settle Trump’s $10 billion lawsuit against the IRS, an agency he oversees and the White House is considering a plan for Trump to issue 250 pardons to mark America’s 250th birthday.

1/ Senate Republicans blocked a resolution to stop Trump’s war with Iran for the seventh time. However, Republican Lisa Murkowski joined Rand Paul and Susan Collins in supporting the Democratic measure, leaving it one vote short. The Trump administration claims the April ceasefire “terminated” hostilities, making congressional authorization unnecessary. But U.S. forces remain deployed in the region, the blockade of the Strait of Hormuz continues, and Defense Secretary Pete Hegseth claims Trump can resume strikes without Congress. “It doesn’t appear that hostilities have ended,” Murkowski said. (CBS News / New York Times / The Hill / Washington Post / Associated Press)

2/ The Senate confirmed Kevin Warsh as Federal Reserve chair in a 54-45 vote. Warsh will replace Federal Reserve Chair Jerome Powell, whose term ends Friday. Powell, however, plans to remain on the Board of Governors. Terms for governors last 14 years, while the chair’s term lasts four years. Warsh, who replaces Stephen Miran on the board, has pledged independence, but Sen. Elizabeth Warren called him a “sock puppet” for Trump. Inflation tied to the Iran war and Trump’s tariffs has complicated Trump’s demand for lower interest rates, and markets are currently not expecting a June rate cut. (CNBC / Bloomberg / Politico / Wall Street Journal / Washington Post)

3/ U.S. producer prices rose 1.4% in April and 6% from a year earlier – the biggest annual increase since late 2022. Energy costs led the increase, with gasoline up 15.6%, with services, trade margins, and shipping costs also rising. The data followed a 3.8% annual increase in consumer prices. (Associated Press / CNBC / Reuters / New York Times / Axios)

4/ The Trump administration will withhold $1.3 billion in federal Medicaid reimbursements from California. JD Vance claimed California had “not taken fraud very seriously,” while Mehmet Oz said the state must “come to the table” to explain outlier billing. Oz said California’s records showed “major red flags,” including $630 million in billing, $500 million in home health services, and $200 million in questionable spending. California, however, disputed the accusation, saying its home care program grew because it’s “keeping more people OUT of far more expensive nursing homes.” CMS also imposed a six-month freeze on new Medicare enrollments for hospice and home health agencies, but current Medicaid beneficiaries and existing Medicare providers aren’t supposed to lose coverage or services. (Reuters / Associated Press / CBS News / NBC News / Wall Street Journal / New York Times / Politico)

5/ The Department of Homeland Security’s inspector general is investigating ICE’s $38 billion warehouse-to-detention program. Under former DHS Secretary Kristi Noem, DHS paid at least $1 billion for nine facilities, while ICE bought 11 vacant warehouses that weren’t zoned for detention at Noem’s direction. New DHS Secretary Markwayne Mullin has since paused the plan. (Wall Street Journal)

6/ Trump’s Justice Department is discussing whether to settle Trump’s $10 billion lawsuit against the IRS, an agency he oversees. Trump sued after a former IRS contractor leaked his tax records, claiming the agency “wrongly allowed” a “rogue, politically-motivated employee” to disclose them. The talks come as U.S. District Judge Kathleen Williams is questioning whether Trump and the IRS are truly opposing parties, since Trump is both the plaintiff and the president overseeing the defendant agency. Options under discussion include having the IRS drop audits of Trump, his family, and his businesses, paying Trump taxpayer funds, or giving him some other unspecified public benefit as part of a pre-deadline settlement. (New York Times / CNN)

7/ The White House is considering a plan for Trump to issue 250 pardons to mark America’s 250th birthday. The discussions are preliminary, and some officials have raised concerns about granting so many pardons before the midterms. There were more than 16,000 formal pardon requests last year. (Wall Street Journal)

The 2026 midterms are in 174 days; the 2028 presidential election is in 909 days.

😒 Dept. of Election Meddling.

  1. South Carolina GOP Gov. Henry McMaster is expected to announce a special session on redistricting. The new map would eliminate Democratic Rep. Jim Clyburn’s seat, leaving the state with seven likely red seats and no Democratic-leaning ones. (Politico)
  2. Republicans in the Louisiana Senate voted to advance a new congressional map that would eliminate one of Louisiana’s two majority-Black districts and give Republicans a 5-1 advantage. (NBC News)
  3. The Missouri Supreme Court approved the state’s Republican-drawn map, creating an additional Republican-leaning seat. (Politico)
  4. Alabama Gov. Kay Ivey set special primary elections for four House races using its 2023 congressional map that includes one majority-Black district. (New York Times)
  5. Georgia Gov. Brian Kemp is calling a special legislative session to redraw his state’s congressional map for the 2028 cycle. Kemp declined to take up redistricting for this cycle. (Politico)