Washington, DC

1. AI antitrust push
2. Trump backs Warsh
3. House-Senate tensions
4. Hunt faces hurdles
5. FDA nominee outreach
6. Dems go on attack in SC
7. Tech’s perception challenge

PDB: Russia sanctions bill heads to Trump’s desk

Trump signs executive orders … US releases housing starts … EU countries to meet on AI

Sens sought AI antitrust exemption in defense bill

Senators had secured a narrow antitrust exemption for AI companies in annual must-pass defense policy legislation earlier this year before negotiations over the measure were delayed, Semafor’s Ashley Gold scoops. Senators included the national security-focused antitrust exemption as part of a larger so-called manager’s package of amendments to the bill, which the leaders of the Senate Armed Services Committee file each year. The proposal from Sens. Jim Banks, R-Ind., and Adam Schiff, D-Calif., would grant AI companies a limited antitrust exemption for sharing intelligence with one another and coordinating defenses against Chinese spying and distilling of AI models, and addressing other risks to advanced systems such as cybersecurity incidents. The effort takes on new relevance as AI companies, led by Anthropic’s Dario Amodei, advocate for a different type of antitrust exemption that allows them to coordinate on pacing the development of their technologies.

Trump backs Warsh despite rates hike

President Donald Trump is still backing Federal Reserve Chair Kevin Warsh — for now — despite the central bank’s unanimous decision yesterday to hike interest rates for the first time in three years. Instead of blaming his pick for chair, Trump pointed the finger at the rest of the board. “The board is very hostile. They’re very political. They’re doing the wrong thing,” Trump told reporters last night, after saying he still has confidence in Warsh. Earlier, Trump had demanded interest rates be lowered to 1% “or less” on social media. Stocks slumped and 10-year Treasury yields jumped on Warsh’s acknowledgement that inflation is “too high and has been for too long.” Warsh had little choice but to go against Trump’s demands for lower rates, given the wild bond market, war-fueled inflation, and a steady job market.

House members gripe at Senate’s slowness

House lawmakers are frustrated with their Senate colleagues as legislation to rein in utility costs related to AI data centers looks like it will make slow progress across the Capitol. The legislation, which aims to shield consumers from these energy spikes, passed overwhelmingly yesterday, giving some political cover to vulnerable Republicans like its sponsor, Rep. Gabe Evans, R-Colo. Trump pollster Tony Fabrizio recently urged Republicans to go on offense on data centers, Axios reported, leading some to embrace the legislation as they head home for the midterms. “By last count, the Senate is sitting on over 700 House bills. So yes, I would hope our colleagues in the other chamber would move with a little more expedition,” said Rep. Jay Obernolte, R-Calif. Senate Republicans still have some incentive to act before November, with the Senate sponsor, Sen. Jon Husted, R-Ohio, facing a tough reelection campaign.

— Nicholas Wu

Saudi ambassador pick faces early hurdles

Trump’s pick for ambassador to Saudi Arabia, Texas Republican Rep. Wesley Hunt, is staring down a potentially difficult confirmation fight due to a tight Senate calendar and Republican skepticism, Semafor’s Lauren Morganbesser and Eleanor Mueller report. Hunt’s nomination came months after he finished third in the Texas GOP Senate primary. Hunt’s entry into the race turned the contentious contest between incumbent Sen. John Cornyn and Attorney General Ken Paxton into a three-way fight. Retiring Sen. Thom Tillis, R-N.C., made clear he’s not sold on the nomination, and that he’d likely prevent Hunt’s consideration as part of a larger group: “The truth is, the odds that I’ll let him go as an en bloc nominee are almost zero, but it needs some more work.” Other Republicans were similarly noncommittal. Cornyn called Hunt an “interesting choice. An interesting choice in many, many ways.”

FDA nominee preps for hearing next week

Heidi Overton is expected to sit for her FDA commissioner confirmation hearing next Thursday, but it is still unclear whether Senate HELP Committee Chair Bill Cassidy is ready to support her. Shortly after Trump nominated her, the Louisiana Republican slammed her part in the rollout of Trump’s vaccine executive order as “almost disqualifying.” But Overton, who works on the White House Domestic Policy Council, has been “doing the rounds” meeting with lawmakers — including a breakfast with Cassidy on Sept. 3 — and speaking with former FDA leaders in recent weeks, according to people familiar with the outreach, who argue it signals she’ll be more collaborative than former FDA Commissioner Marty Makary if confirmed. Other Trump health picks — including Surgeon General nominee Nicole Saphier and deputy health secretary nominee Chris Klomp — are for now on a glidepath for confirmation, even if they don’t win Democratic support.

— David Lim

Dem group boosts Graham challenger

A new group is launching a $2.5 million ad campaign in an effort to boost Democratic Senate nominee Annie Andrews in South Carolina. The group, Fresh Start South Carolina, is putting healthcare at the center of their argument for Andrews, a pediatrician, and against GOP Sen. Darline Graham. “South Carolinians work hard, but still struggle. And Darline Graham supports a plan to make healthcare harder. Darline Graham’s way would kick millions of Americans off their healthcare, including families with seniors and children,” the narrator says in the group’s first ad that’s set to air statewide on broadcast TV, cable, and streaming. The seat is widely considered reliably Republican, but some recent polling has Democrats feeling optimistic and Andrews has pushed the party to invest in the race.

— Nicholas Wu

Tech, oil industries suffer perception drop

Significantly fewer Americans hold positive views of tech, electric utilities, and oil and gas companies than did a year ago, a sign that the AI panic and high energy prices are taking a toll on the public’s perceptions of these sectors. The share of Americans who view the computer industry positively fell 11 points to 48%, according to new Gallup polling taken in August, a new low. Less than 10 years ago, two-thirds of Americans — a record high — looked at the computer industry positively. Just one-third of Americans now hold a positive view of electric and gas utilities, while three in 10 feel the same about the oil and gas sector. While many more Republicans than Democrats view oil and gas positively, the recent dip in support was driven exclusively by declining views among GOP voters.

What crypto taught Dems about AI backlash

If you don’t appreciate how quickly Democrats are entering attack mode against AI, just count the groups they’ve started in the last week. There’s Tomorrow Together, the new PAC formed by veterans of the Bernie Sanders and Kamala Harris campaigns; Who Decides, launched by New York state legislator Alex Bores in the wake of his failed House bid; and now the Stop Bleeding the Future pledge, which commits candidates to “refuse all money from” the most active AI industry PAC. Below the surface, there is a lot of finger-pointing about where the anti-AI energy is coming from. But we’re in the middle of an election, and the Democratic Party’s conversation about this is pretty simple. They see a president who isn’t popular, an industry that’s less popular, and a very straightforward story about wealthy job-destroyers using their political access to put everybody at risk.

White House

• Postmaster General David Steiner has grown frustrated with the job and wants to quit. — Reuters
• National Park Service officials acknowledge that President Trump’s hoped-for triumphal arch would disrupt historic sites but say it must proceed anyway. — WaPo
• White House science adviser Michael Kratsios teased a science-focused summit in Washington next month.

Congress

• Sen. Rand Paul, R-Ky., blocked Sen. John Kennedy’s, R-La., AI “kill switch” bill; Kennedy said he’d “rather be condemned to listening to OJ jokes for the rest of eternity” than accept Paul’s suggested amendment.
• The House unanimously held investor Leon Black in contempt for his refusal to appear for a deposition related to Jeffrey Epstein.
• A late-night meeting Tuesday among Republican leaders to hash out a gas tax holiday proposal descended into chaos and profanity. — Washington Sun

Outside the Beltway

• Paramount is looking for office space in Nashville as the company threatens to leave Los Angeles. — Politico

Campaigns

• Most Republican candidates are ignoring President Trump’s messaging cues. — WaPo
• Kamala Harris will appear with Michigan Senate hopeful Abdul El-Sayed next week.

Business