Summary

The Latest: The US national debt hits a record $40 trillion The United States’ debt surpassed a record $40 trillion Wednesday, a staggering milestone as defense costs, social programs and interest on the burgeoning deficit make up an enormous share of federal spending. The milestone figure was recorded just five months after the U.S. hit a record $39 trillion debt in March. It reached $38 trillion five months before that, in October. The Latest: The Trump administration is imposing new sanctions on Cuba targeting its mining and metals sectors and broadening restrictions on Americans’ transactions with government-owned or affiliated businesses. It also accused Havana of using cultural and educational exchanges to radicalize U.S. citizens. The Treasury and State departments announced sanctions on Thursday against 10 state-owned mining, metals, and construction companies and the leadership of the Cuban Institute of Friendship with the Peoples, or ICAP. Secretary of State Marco Rubio said ICAP is responsible for sponsoring a “subversive network” to “cultivate” Americans, most recently with educational and cultural exchanges around the 100th anniversary of Fidel Castro’s birth earlier this month. The sanctions follow an operation at the Miami airport last weekend in which several American citizens returning to the U.S. from events marking Castro’s birthday in Cuba were briefly detained, some of whom had their cell phones and other personal electronic devices seized for inspection. Federal agents have seized electronic devices from former Rep. Eric Swalwell and searched his Washington home as part of an investigation into allegations of sexual misconduct by the ex-Democratic congressman from California, according to a person familiar with the matter. Swalwell’s devices were seized at the San Francisco airport on Saturday, and federal agents searched his home a day later. A message seeking comment was left Thursday with an attorney for Swalwell. Swalwell announced his resignation from Congress in April following sexual assault and misconduct allegations, which he has denied. The AP source wasn’t authorized to discuss an ongoing investigation publicly and spoke on the condition of anonymity. Treasury Secretary Scott Bessent said during a CNBC interview on Thursday that an accelerated buyback of government debt “could be more than $4 billion per issue.” His comments followed the Treasury’s Wednesday announcement that it would dramatically expand the amount of U.S. government bonds it will buy back. When asked about the motivation for the move, Bessent said: “We’re trying to signal that this is a thinly traded area of the market, we’re in August and there’s been a lot of corporate issuances.” “We’re trying to keep the market in equilibrium.” The first lady is partnering with IndyCar, the sanctioning body for U.S. auto racing, and Indiana and Purdue universities to fund the scholarships, her office says. Both Indiana-based schools are joining about two dozen other institutions of higher learning to offer scholarships through Melania Trump’s “Fostering the Future” initiative benefiting young people in foster care. A formal announcement is set for Thursday afternoon in the White House Rose Garden. The first lady will be joined by her husband and representatives from IndyCar and the universities. The announcement comes just before Sunday’s Freedom 250 Grand Prix race in downtown Washington, which was organized by the president to help celebrate America’s 250th birthday. The State Department said Thursday that it had given the green light for Qatar, a key U.S. partner in the Gulf, to buy four KC-46A aircraft along with assorted equipment, including turbofan engines, radar warning devices and countermeasure systems. The sale will also include trucks, training and assorted logistics services. The sale “will increase Qatar’s capability to meet current and future threats by enhancing its defense capabilities and interoperability with U.S. and allied forces and reinforcing Qatar’s strategic role in regional security,” the department said. Qatar, which hosts a major U.S. military base, has been a critical part of the war with Iran, including by trying to mediate an end to the conflict. The launches come a day after North Korea shrugged off a U.S. decision to scale back military drills with South Korea in an apparent bid to resume diplomacy. South Korea’s military said the launches of about 10 short-range ballistic missiles happened from North Korea’s capital region Thursday evening. The military said the missiles flew about 300 kilometers each toward North Korea’s eastern waters. Trump ordered the Pentagon to “substantially reduce” the Ulchi Freedom Shield exercises just before they began Monday. The president cited what he said was a good relationship with North Korean leader Kim Jong Un and South Korea’s refusal to support him over the war in Iran. Braid was in charge of helping to shepherd Trump’s legislative agenda through a Congress where his Republican Party controlled both chambers. Vice President JD Vance wrote on X that Braid “played a critical role in all of the administration’s achievements in Congress,” including the sweeping tax and spending legislation approved last summer. Vance described Braid as “brilliant” and “one of the hardest workers you will ever meet.” The vice president didn’t provide details of Braid’s next job, saying only that he was “very excited to see what he does next.” The Asia-based USS George Washington aircraft carrier is now operating in the Middle East, the U.S. military said Thursday. The Washington is relieving the long-deployed USS Abraham Lincoln after reports that sailors were facing mental health challenges and supply shortages while supporting the Iran war. The Lincoln’s deployment has included a record-setting uninterrupted time at sea. Democratic lawmakers are pressing for accountability from the Pentagon over conditions aboard the carrier, which Defense Secretary Pete Hegseth has said were “completely misrepresented.” The deployment of the Washington to the Middle East has left Asia without an American carrier strike group at a time when China shows more signs of aggression. Secretary of State Marco Rubio has designated a U.S. citizen scholar jailed in China as “wrongfully detained” as Trump prepares to welcome Chinese President Xi Jinping to the White House next month. The State Department said Thursday that Rubio had decided that Min Zin, who was arrested by Chinese authorities in June, is being unjustly held. “We call on Beijing to release all U.S. citizens arbitrarily detained or exit-banned in China,” the department said. The designation raises the profile of his case within the U.S. government and in the past has led to additional attention and resources being devoted to securing the release of wrongful detainees. Min Zin, who writes about Myanmar and Chinese foreign policy, was arrested on suspicion of spying. He was a student activist in Myanmar’s 1988 uprising, a student-led movement that the government at the time reacted to with military force. He eventually sought asylum in the U.S. The Democratic Congressional Campaign Committee said the expansion showcases the depth of its candidate bench as they try to wrest majority control of the House. Chair Suzan DelBene said the candidates are “proven fighters” at a time when voters are “eager for leaders who will always put the well-being of their communities first, not rubber stamp Trump’s failed agenda.” The candidates include retired Army Brigadier General Leela Gray in Florida, former federal prosecutor Zach Dembo in Kentucky, Maine state auditor Matt Dunlap, former Navy helicopter pilot Nancy Lacore in South Carolina and former Rep. Tom Perriello in Virginia. The “red to blue” program invests in promising candidates with funding and other support. Democrats on Thursday narrowed the list of potential host cities for their 2028 presidential convention to Boston, Denver and Philadelphia as their party looks ahead to a wide-open primary to succeed President Trump. Democratic National Committee Chairman Ken Martin said in a statement the cities put forward “incredibly strong bids,” and he promised the convention would be an “inspiring celebration of our party’s future nominee.” A final decision is expected to be made later this year by party leaders. Republicans have already chosen Houston for the site of their 2028 convention. The Democratic convention, scheduled for Aug. 7-10, 2028, traditionally gives the party a chance to formally introduce its nominee to the country, rally the base and kick-start the most intense period of campaigning ahead of the general election. The party didn’t specify why Atlanta and Chicago, which was the site of the 2024 convention, were eliminated. Officials visited all five cities in April and May, considering logistical and fundraising capacity among other factors. Trump played White House tour guide on Wednesday, showing off the helipad he is building on the lawn before leaning over to autograph a piece of it and bragging about the ballroom he’s rushing to complete despite legal challenges. Trump gushed for several uninterrupted minutes about granite being laid and said the chopper landing area would leave visiting foreign leaders “very impressed” — including Chinese President Xi Jinping, who is coming next month. At times, he sounded almost like a construction manager, singing the praises of granite over asphalt in painstaking detail and noting for reporters he brought out for the show that the stone could withstand 35,000 pounds per square inch of pressure. The president also revealed for the first time that he has replaced the walkway from the White House’s diplomatic entrance along with a portion of the asphalt driveway around the South Lawn with white granite. The national debt surpassed a record $40 trillion Wednesday, a staggering milestone as defense costs, social programs like Social Security and Medicare and interest on the burgeoning deficit make up an enormous share of federal spending. The milestone figure was recorded just five months after the U.S. hit a record $39 trillion debt in March. It reached $38 trillion five months before that, in October. The unprecedented $40 trillion figure highlights competing administration priorities, from boosting defense spending that the U.S. relies on to carry out President Donald Trump’s almost 6-month-old war in Iran to lowering the cost of gas and groceries. Kush Desai, a White House spokesman, said the Trump administration “has been focused on slashing waste, fraud, and abuse in federal spending while accelerating economic growth to get America’s debt-to-GDP ratio trending in the right direction.” However, experts say the exploding debt and the latest record milestone are already affecting Americans’ pocketbooks by raising borrowing costs for things like mortgages and cars, lowering wages from businesses that have less money available to invest, and creating more expensive goods and services.