Today in one sentence: Special Counsel Jack Smith's final report made clear that Trump has not been exonerated for his “unprecedented criminal effort to overturn the legitimate results of the election in order to retain power” and that the evidence would have secured a conviction had the case gone to trial; Special Counsel David Weiss criticized Biden for calling the prosecution of his son, Hunter Biden, politically motivated; Pete Hegseth, Trump’s nominee for defense secretary, faced a contentious confirmation hearing before the Senate Armed Services Committee; the Republican-led House banned transgender women and girls from participating in female sports categories; House Speaker Mike Johnson suggested tying federal aid for California wildfire recovery to debt ceiling negotiations; Mike Johnson ordered flags at the Capitol to be raised to full staff for Trump’s inauguration, temporarily overriding Biden’s directive to keep flags at half-staff for a 30-day mourning period honoring Jimmy Carter; the Biden administration moved to remove Cuba from the U.S. list of state sponsors of terrorism, citing a lack of credible evidence to support the designation; and Trump announced plans to create an “External Revenue Service” to collect tariffs and other forms of revenue that come from foreign sources.

1/ Special Counsel Jack Smith’s final report made clear that Trump has not been exonerated for his “unprecedented criminal effort to overturn the legitimate results of the election in order to retain power” and that the evidence would have secured a conviction had the case gone to trial. Smith’s 137-page report, released early Tuesday, detailed Trump’s alleged actions, including how he “inspired his supporters to commit acts of physical violence” on Jan. 6 and knowingly spread “demonstrably and, in many cases, obviously false” claims of voter fraud. The prosecution, however, was dropped due to Trump’s 2024 reelection and longstanding Justice Department policy prohibiting the indictment of sitting presidents. Smith wrote, “Indeed, but for Mr. Trump’s election and imminent return to the Presidency, the Office assessed that the admissible evidence was sufficient to obtain and sustain a conviction at trial.” Smith’s report also directly countered Trump’s claims of political bias: “To all who know me well, the claim from Mr. Trump that my decisions as a prosecutor were influenced or directed by the Biden administration or other political actors is, in a word, laughable.” Smith emphasized that the investigation adhered strictly to facts and the law, asserting, “My Office had one north star: to follow the facts and law wherever they led. Nothing more and nothing less.” Trump, meanwhile, dismissed the report as a “political hit job,” repeating his unsubstantiated claims of election fraud while accusing Smith of failing to bring the case to trial before the election. Nevertheless, Smith defended the effort, stating, “While we were not able to bring the cases we charged to trial, I believe the fact that our team stood up for the rule of law matters.” (Politico / NPR / NBC News / New York Times / Washington Post / Wall Street Journal / The Guardian / Axios)

2/ Special Counsel David Weiss criticized Biden for calling the prosecution of his son, Hunter Biden, politically motivated, arguing that such statements “undermine the public’s confidence in our criminal justice system.” Weiss’s final report defended his investigation, which led to convictions for tax evasion and firearms charges before Biden pardoned his son. The report dismissed claims of political bias and emphasized that the prosecutions adhered to principles of equal justice. Hunter Biden’s attorney, meanwhile, called the investigation “a cautionary tale of the abuse of prosecutorial power.” (NBC News / Washington Post / New York Times)

3/ Pete Hegseth, Trump’s nominee for defense secretary, faced a contentious confirmation hearing before the Senate Armed Services Committee, where partisan divisions emerged over his qualifications, personal conduct, and policy positions. In his opening remarks, Hegseth called himself a “change agent,” who would “restore the warrior ethos,” “rebuild our military,” and “re-establish deterrence” if confirmed. Hegseth said that Trump’s “primary charge” to him was “to bring the warrior culture back to the Department of Defense” and that “he wants a Pentagon laser-focused on warfighting, lethality, meritocracy, standards, and readiness.” He added: “We are not Republicans or Democrats — we are American warriors.” Democrats criticized Hegseth’s lack of management experience, allegations of sexual assault and excessive drinking, and past remarks opposing women in combat and diversity efforts in the military. They argued his confirmation would undermine the Pentagon’s commitment to professionalism and readiness, calling him “unqualified” and his confirmation an “insult the men and women” of the military. Hegseth dismissed the allegations, claiming he was the target of a “coordinated smear campaign” by media and political opponents, stating: “I’m not a perfect person, but redemption is real.” Republican senators, meanwhile, largely supported him, describing him as a “breath of fresh air” for the Department of Defense. The hearing concluded with Hegseth appearing to have enough Republican support to advance his nomination. A committee vote is scheduled for next week, setting the stage for a likely full Senate confirmation vote. (Associated Press / NPR / Politico / New York Times / NBC News / Washington Post / Bloomberg / Wall Street Journal / Axios / ABC News)

4/ The Republican-led House banned transgender women and girls from participating in female sports categories, defining sex as “based solely on a person’s reproductive biology and genetics at birth.” The Protection of Women and Girls in Sports Act, which passed 218-206 with two Democrats joining Republicans, ties compliance to federal funding under Title IX – a law aimed at ensuring gender equity in education and athletics. The bill now moves to the Senate, where its future is uncertain, though Trump has pledged to implement similar policies via executive order after his inauguration. (CBS News / New York Times / Washington Post / Politico / Wall Street Journal / Axios)

5/ House Speaker Mike Johnson suggested tying federal aid for California wildfire recovery to debt ceiling negotiations, citing alleged mismanagement by state leaders. Johnson and other Republicans argued for “conditions” on disaster relief, blaming California’s policies for the scale of the destruction. This position has faced pushback from Democrats, who criticized the move as politicizing disaster recovery. Johnson confirmed discussions with GOP members, including Trump, on linking aid to broader fiscal measures. Relief approval may face delays due to partisan disputes. (ABC News / Washington Post / Politico)

6/ Speaker Mike Johnson ordered flags at the Capitol to be raised to full staff for Trump’s inauguration, temporarily overriding Biden’s directive to keep flags at half-staff for a 30-day mourning period honoring Jimmy Carter. Trump criticized the timing of the flag-lowering directive, arguing it would overshadow his inauguration. Governors in several Republican-led states, including Texas and Florida, followed suit, ordering state flags raised for Inauguration Day. Johnson stated that flags at the Capitol would return to half-staff the following day through the end of January to continue the tribute to Carter. Trump’s Mar-a-Lago, meanwhile, has been flying American flags at full-staff. U.S. flag code mandates mourning periods, but lacks enforcement mechanisms for non-compliance. (New York Times / Associated Press / CBS News)

7/ The Biden administration moved to remove Cuba from the U.S. list of state sponsors of terrorism, citing a lack of credible evidence to support the designation. While the decision is expected to ease some U.S. economic pressures on the island, the incoming Trump administration will likely reverse the move. Trump designated Cuba as a state sponsor of terrorism before he left office in January 2021 – five years after it had been removed from the list by Obama. (NBC News / Politico / CNN / Associated Press)

🍿 Notables.

  1. Trump announced plans to create an “External Revenue Service” to collect tariffs and other forms of revenue that come from foreign sources. While U.S. Customs and Border Protection currently handles tariff collection, the ERS would potentially take over this function, though its implementation and necessity remain unclear. Economists warned that tariffs are largely paid by U.S. consumers and could exacerbate inflation, while critics called the proposal a rebranding effort to mask a tax hike. (Washington Post / Politico / Associated Press / Bloomberg / CNBC)

  2. Elon Musk is expected to use office space in the Eisenhower Executive Office Building as he launches the so-called Department of Government Efficiency. Musk’s companies hold significant federal contracts, raising concerns about ethics, transparency, and his influence on the Trump administration. (New York Times)

  3. Chinese officials are considering selling TikTok’s U.S. operations to Elon Musk if ByteDance cannot overturn a potential U.S. ban on the app. Beijing prefers to retain ownership through ByteDance, but has begun exploring contingencies as the Supreme Court appears likely to uphold legislation mandating the app’s sale or closure due to national security concerns. Musk could potentially merge TikTok U.S. with his X platform. (Bloomberg / Wall Street Journal / Semafor)

  4. Elon Musk, Jeff Bezos, and Mark Zuckerberg will attend Trump’s inauguration. All three have contributed significantly to Trump’s campaign or inauguration fund and face potential business implications tied to his policies, such as antitrust scrutiny and federal contracts. The Washington Post editorial board, meanwhile, endorsed nearly all of Trump’s Cabinet nominees. Separately, Washington Post columnist Jennifer Rubin resigned, criticizing Bezos, Zuckerberg, and others for supporting Trump. (NBC News / CNBC / New Republic)

  5. Steve Bannon criticized Mark Zuckerberg and Elon Musk for their growing influence within Trump’s orbit, accusing Zuckerberg of manipulating the 2020 election and prioritizing corporate self-interest. Bannon’s remarks come amid Zuckerberg’s decision to loosen content moderation policies at Meta and Musk’s integration into Trump’s administration through the Department of Government Efficiency. The critiques highlight the ongoing tension between Trump’s inner circle and Silicon Valley billionaires vying for influence in the new administration. (The Hill / New Republic)

Four years ago today: Day 1456: "Self-pity mode."
Five years ago today: Day 1090: "Deserve the truth."
Six years ago today: Day 725: Big fat hoax.