1/ Senate Republicans shot down their own repeal-and-replace bill last night as nine of the 52 Republicans voted against it. The repeal-and-replace bill was a compromise measure meant to appeal to both conservatives and moderate Republicans. Mitch McConnell needed 60 votes to pass the bill. Instead, the vote failed 43-57 just hours after the Senate had narrowly voted to begin debate on a bill to repeal the Affordable Care Act. (New York Times / Washington Post / Reuters / CNN)

2/ The Senate rejected the GOP repeal-only measure, which would have repealed major parts of the Affordable Care Act without providing a replacement. The vote failed 45-55. The last viable path for Senate Republicans is to now try their “skinny repeal,” which rolls back the mandate that most people have insurance, but leaves most of Obama’s health law in place. Senators would then take their narrow bill into negotiations with the House. (New York Times / Washington Post / CNN)

  • The CBO estimated that the “skinny repeal” would lead to 15 million fewer Americans having health insurance 10 years from now. The skinny repeal would repeal the individual mandate, the employer mandate, and some taxes on the health care industry, while leaving most of Obamacare in place. (Vox)

  • Tom Price: do whatever “gets us to 50 votes so that we can move forward on a health-care reform legislation.” The Health and Human Services Secretary urged Senate Republicans to aim for the “lowest common denominator” to keep the Obamacare repeal alive. (CNBC)

  • Trump took aim at Senator Lisa Murkowski, tweeting that she “really let the Republicans, and our country, down yesterday. Too bad.” Murkowski and Senator Susan Collins were the only two GOP senators to vote against a procedural vote to begin debate on repealing Obamacare. (CNN)

3/ The House approved bipartisan sanctions against Russia while limiting Trump’s power to waive them without a Congressional review. The package, which also includes sanctions against Iran and North Korea, passed 419 to 3. It sets up a veto dilemma for Trump: he can sign or veto the bill, but the Senate, like the House, is expected to pass the legislation by a veto-proof margin. (NBC News / Washington Post / CNN)

4/ Russia threatened to retaliate against the new sanctions, warning of a “painful” response and saying the sanctions make it impossible to achieve Trump’s goal of improved Russian relations. Russia has reportedly prepared “economic and political measures that will be adopted if the Senate and Trump support the bill.” (Bloomberg)

5/ Trump tweets that the US will no longer “accept or allow” transgender people in the military, saying the military “must be focused on decisive and overwhelming victory” and it could not afford to accommodate them. The policy decision reverses the transformation of the military under Obama, whose administration allowed transgender people to openly serve in the military. The Pentagon will defer enlistments by transgender applicants, but it’s not clear how Trump intends to implement the ban as transgender people already serve in the military. (NPR / New York Times)

  • Inside Trump’s snap decision to ban transgender troops. A congressional fight over sex reassignment surgery threatened funding for his border wall. (Politico)

  • The Texas Senate approved a bill that restricts bathroom access for transgender people, endorsing a piece of legislation denounced by civil liberties advocates as discriminatory. (Reuters)

  • The military spends 10 times as much on erectile dysfunction medicines as it does on transgender troops’ medical care. A Rand study estimated that treatment for transgendered troops cost the military between $2.4 million and $8.4 million annually. By contrast, total military spending on erectile dysfunction medicines amounts to $84 million annually. (Washington Post)

  • Trump’s transgender ban could force out thousands of service members. One research think tank estimated there are between 1,320 and 6,630 transgender Americans serving in the military out of 1.3 million active-service members. Another think tank put the total number of active-duty and guard or reserve service members higher, estimating that 15,500 transgender people are part of those military forces. The institute’s researchers also calculated that 134,300 veterans identify as transgender. (The Atlantic)

6/ At a rally in Ohio, Trump claimed he can be “more presidential than any president that’s ever held this office” – except for Lincoln. He said that it’s easier to “act presidential than what we are doing here tonight” (give a speech) and that “with few exceptions, no president has done anywhere near what we’ve done in his first six months. Not even close.” (The Hill / CNN)

7/ Trump attacked Jeff Sessions for not firing Acting FBI Director Andrew McCabe after James Comey was fired in May. The attack came, predictably, via Twitter, where he wrote in a pair of tweets: “Why didn’t A.G. Sessions replace Acting FBI Director Andrew McCabe, a Comey friend who was in charge of Clinton investigation but got big dollars ($700,000) for his wife’s political run from Hillary Clinton and her representatives. Drain the Swamp!” At a news conference yesterday, Trump was asked if he would fire Sessions. “We’ll see what happens,’’ Trump said. (Politico / Washington Post)

  • Several top White House officials have urged Trump to stop his public criticism of Sessions. Steve Bannon, Reince Priebus, and others have been talking up Sessions in conversations with Trump, reminding him that the attorney general has been one of the most effective members of his Cabinet in advocating for and advancing his agenda. (CNN)

  • An Alabama Senate candidate offered to withdraw from the race so Sessions can take his former seat. Mo Brooks proposed that all nine candidates drop out of the race simultaneously if Trump ousts Sessions from the Justice Department. The other candidates are almost certain to reject the proposal. (Politico)

8/ Sessions escalated his crackdown on so-called sanctuary cities, saying they could lose millions of dollars in federal grants unless they cooperate with federal agents to deport suspected undocumented immigrants held in local jails. The new policy will apply to all cities that apply for a federal grant program that provides roughly $250 million in crime-finding aid to states and local governments. (Los Angeles Times / The Guardian / NBC News / New York Times)

9/ Rex Tillerson is “just taking a little time off,” but has no plans to resign as Secretary of State. After Trump’s public attack on Jeff Sessions, rumors swirled that Tillerson could resign from his role citing Trump’s behavior as unprofessional. Tillerson took some days off earlier this week, but returned to work today after “a lengthy meeting with the vice president at the White House on some important policy issues.” (USA Today / The Hill)

10/ North Korea threatened a nuclear strike on “the heart of the US” if it attempts to remove Kim Jong Un as Supreme Leader. Meanwhile, US intelligence agencies believe North Korea will be capable of delivering a missile that can reach the continental US within a year. (CNN / New York Times)

poll/ 49% of Trump voters believe Trump won the popular vote. Kris Kobach — the vice chair of Trump’s election commission — floated the idea that “we may never know” whether Clinton won the popular vote. (Politico)

poll/ 45% of Republicans favor shutting down “biased” media outlets. Meanwhile, 18% of Democrats favor the courts to shut down news media outlets for publishing or broadcasting stories that are biased or inaccurate. (The Daily Beast)

poll/ Trump’s job approval stands at 43% in 11 states he won. Overall, Trump has a 40% approval rating among all adults over his first six months. (CNN)