Washington, DC

1. GOP’s midterm money choices
2. AI meme war
3. Oil prices set to spike
4. Goodbye, Kennedy Center?
5. Hilton’s blue-state blues

The two leading political groups representing state attorneys general have raked in a record $37 million in donations this year, as states pick up antitrust matters while the federal government steps back.

Senate GOP considers cutting spending in North Carolina, Georgia races

Republicans may have to make hard choices this fall as they shape their strategy for keeping the Senate — which some think might not include North Carolina or Georgia, Semafor’s Burgess Everett reports. Just 10 years ago, the two Southern states formed the bedrock of Republicans’ Senate majorities. But as President Donald Trump’s low approval ratings hamper the party’s candidates nationwide and widen the battleground map, some in the GOP want to adjust tactics and consider moving money away from races where its candidates are struggling to gain traction. “These are always tough decisions, but it’s a zero-sum game. It’s important that resources are directed where there’s a high probability of a winning outcome,” one Republican senator told Semafor. “North Carolina and Georgia have consistently shown us behind. It’s not an easy environment.”

Behind the new Trump administration AI memes

A pro-AI meme campaign is rolling out on government social media accounts, casting “effective altruist” as a slur as the White House doubles down on its regulatory light touch. Amid an international reckoning over the capabilities and dangers of high-level AI, the Trump administration is casting effective altruists — who focus on reducing harm from the tech and heavily weigh advancement versus risk — as the enemy. Images of a fist-pumping Trump and “Americanism, Not Effective Altruism!” are appearing on X posts from the Pentagon. The Federal Communications Commission posted a Western-esque graphic with the text “Choose the Frontier — Never Doom.” An account run by the Centre for Effective Altruism replied to one post, “Thanks for the mention.” One person working in AI policy who has been associated with effective altruism told Semafor: “This is the best publicity EA has gotten in years.”

— Ashley Gold

US braces for gas price surge

Oil and diesel prices are expected to surge further in the US, as the widening conflict in Iran causes broader disruption. Globally, governments that had blunted the effects of the energy shock are struggling to continue to do so, and protests against rising prices and fuel shortages are cropping up in Asia, Latin America, and Europe. The Trump administration is optimistic that a Saudi pipeline damaged in attacks by the Iran-backed Houthis last week will reopen shortly, but that alone won’t fill the gap. The Houthis have tightened their grip on a key choke point in the Red Sea, cutting the volume of Saudi oil that had continued to leave the Gulf through the conflict. Meanwhile, Iran continues to stymie trade through the Strait of Hormuz. A new, tougher economic chapter could be opening in the Iran war on the eve of the midterm elections.

Lawyers fear Trump may demolish Kennedy Center

A judge ordered the board of the Kennedy Center to give 30 days’ notice for any changes they plan to make to the facility, a response to a filing that warned the court the president may plan to demolish it in retaliation for a ruling blocking his name from being appended to the building. Trump yesterday said on social media the center would be “ripped down,” and a photo taken last night showed the president aboard Air Force One looking at a poster that appears to read “Kennedy Center DEMOLISHED.” An attorney for the plaintiffs said in a filing that she saw a forklift “run into and hit the pillars on the building several times.” A spokesperson for the venue told CBS, “Nothing is being demolished.”

How a California Republican is courting Trump haters

Steve Hilton, the Republican nominee for governor of California, is facing an acute version of the challenge familiar to GOP candidates nationwide: how to make the most of an endorsement from Trump as the president’s popularity wanes. In an interview with Semafor’s Lauren Morganbesser, Hilton acknowledged the challenge he faces in a state Trump lost by 20 points two years ago. “I think the starting point is that we’ve got millions of moderate Democrats and independents in California. There’s no secret. They don’t like the president to put it mildly, but they are really desperate for change,” Hilton said. In a recent campaign ad, he told voters, “Maybe you hate Trump. Maybe you hate Republicans. I don’t care.” Hilton added that Trump’s support could help him with the Republican base; Hilton could use the help as he trails Democrat Xavier Becerra.

White House

• The White House withdrew the nomination of former Oklahoma state trooper Lance Schroyer to lead Immigration and Customs Enforcement after Senate Homeland Security Chair Rand Paul, R-Ky., blocked his confirmation hearing.
• The Trump administration is expected to delay an announcement of new tariffs until after President Trump meets with Chinese leader Xi Jinping next week. — Bloomberg
• The SEC unveiled its plan to allow tokenized stock trading in the US after landmark cryptocurrency legislation imploded.

Congress

• Sen. Cory Booker, D-N.J., wants President Trump to call a special congressional session on AI.
• Former Sen. Jon Kyl, R-Ariz., died at 84.
• The Senate’s final version of the college sports bill shortens the time schools would need to be independent if they want to change conferences from five years to three years.

Campaigns

• Rep. Maria Elvira Salazar, R-Fla., posted a straight-to-camera campaign ad breaking with President Trump, who carried her district by 15 points two years ago.
• Former Maine Sen. William Cohen, a Republican, writes in an op-ed that replacing GOP Sen. Susan Collins would hurt Maine.
• Digital streaming personality Hasan Piker said in an interview with Axios that America has committed more acts of deadly terrorism “pound for pound” than Al-Qaeda.

Courts

• A judge in Minnesota appointed by former President George W. Bush called the Trump administration’s actions in the state last winter “a grave threat to the rule of law.” — NYT
• A man who sprayed vinegar at Rep. Ilhan Omar, D-Minn., during a Minneapolis town hall was sentenced to 14 months in prison.

Foreign Policy

• Sen. Jeanne Shaheen, D-N.H., wrote a letter to Secretary of State Marco Rubio urging that US diplomats be involved in reviewing potential troop reductions in Europe. — Reuters

Technology

• Sen. Martin Heinrich, D-N.M., blocked Sen. Jon Husted, R-Ohio, from passing the data center-focused Ratepayer Protection Act, arguing it didn’t go far enough.
• The Federal Aviation Administration is rolling out new AI-powered software to help manage air traffic. — WSJ

National Security

• Lockheed Martin unveiled a next-generation air-to-air missile developed to counter threats from China and a new agreement with the Pentagon to boost missile production.

— Health and Human Services Secretary Robert F. Kennedy Jr.

Laura McGann, editor

With help from Elana Schor, senior Washington editor, and Morgan Chalfant, Washington briefing editor

Graph Massara and Lauren Morganbesser, copy editors

Contact our reporters:

Burgess Everett, Ashley Gold, Eleanor Mueller, Shelby Talcott, Nicholas Wu, David Weigel, David Lim