The Paper Trail: July 22, 2025

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The Paper Trail

Editor’s Note

There will be no Paper Trail on Tuesday, July 29.

Announcements

Applications are now open for a two-day intensive Boot Camp on the art and practice of oversight and investigations hosted by POGO, the Levin Center for Oversight and Democracy, and The Lugar Center. This training is only open to staff in Congress. Apply at THIS LINK by July 25.

House staff and Members are invited to join the Office of the Whistleblower Ombuds next virtual Fireside Chat on July 24 from 2:00 p.m. - 3:00 p.m. EDT discussing practical do’s and don’ts for working with whistleblower constituents and oversight sources. House staff can register for the event through the Congressional Staff Academy website. For more information and to view speaker details, see the Office’s events page.

Top stories for July 22, 2025

Trump officials accused of defying 1 in 3 judges who ruled against him: President Trump and his appointees have been accused of flouting courts in over a third of the more than 160 lawsuits against the administration in which a judge issued a substantive ruling. None of these judges have taken punitive action to try to force compliance, allowing the defiance to go on for weeks or even months. (Justin Jouvenal, Washington Post)

Trump creates “Schedule G” to add more political appointees to agencies top ranks: The order creating another new category of federal employees will expand the number of political appointees who don’t require Senate confirmation. “Schedule G employees will be hired to help faithfully implement the President’s policy agenda,” the White House said. (Eric Katz, Government Executive)

State Department guts its office combating human trafficking: The State Department cut 1,353 positions, about 15% of its Washington-based staff. The Office to Monitor and Combat Trafficking in Persons, which for 25 years has worked to combat human sex and labor trafficking around the world, is losing about half of its staff. When combined with deferred resignations, the office now has about a third of the full-time staff it had in January. (Pema Levy, Mother Jones)

🔎 See Also: State Dept. layoffs led by team of outsiders willing to “break stuff” (Adam Taylor, Hannah Natanson, and John Hudson, Washington Post)

Dismissals at Justice Dept. would bypass civil service and whistleblower laws: The DOJ is accelerating its efforts to undo decades of civil service protections intended to insulate the work of law enforcement officials from political interference, ramping up a wave of firings. (Devlin Barrett, New York Times)

DOJ hits states with broad requests for voter rolls, election data: The DOJ and Trump administration allies have launched a multipronged effort to gather data on voters and inspect voting equipment in the states, sparking concern about federal interference ahead of the 2026 midterms. (Patrick Marley and Yvonne Wingett Sanchez, Washington Post)

IRS is building a vast system to share millions of taxpayers’ data with ICE: The IRS is building a computer system that would give deportation officers unprecedented access to taxpayers’ home addresses. The system will give ICE automated access to the data en masse, which some fear could result in immigration agents raiding wrong or outdated addresses. (William Turton, Christopher Bing, and Avi Asher-Schapiro, Government Executive)

🔎 See Also: ICE is getting unprecedented access to Medicaid data (Leah Feiger et al., Wired)

Efforts to shrink Social Security’s phone wait times are putting a strain elsewhere: The Social Security Administration recently reassigned a small share of its field office employees in an effort to bring down lengthy wait times for the agency’s national 800 phone number. Workers at local offices across the country say these reassignments have been disruptive for staff and are increasing wait times for other services. (Ashley Lopez, NPR)

Well-timed or just lucky? Top Trump officials’ stock sales clustered before tariff news: Several top administration officials — including Interior Secretary Doug Burgum, Transportation Secretary Sean Duffy, and Defense Secretary Pete Hegseth — sold off stock holdings in the days leading up to the president’s February and April tariff announcements. Of the stock sales administration officials reported between January 20 and April 30, 90% fell within 10 days of the tariff announcements. (Suhail Bhat and Ramon Padilla, USA Today)

Elon Musk & DOGE

The U.S. DOGE Service is still hiring: The U.S. DOGE Service is hiring after much of the staff in what was formerly called the U.S. Digital Service was laid off or left the team. The cost-cutting unit is looking to fill 40 positions. Before Trump took office, USDS had a staff of over 200 people. It’s estimated that USDS currently has about 25 people. (Natalie Alms, Government Executive)

DOGE put free tax filing tool on chopping block after one meeting with lobbyists: When DOGE arrived at the IRS earlier this year, the group reassured workers that the agency’s free tax filing tool, Direct File, would be spared from cuts. But after meeting with tax software lobbyists, DOGE presented Treasury Secretary Scott Bessent a plan to kill Direct File. (Makena Kelly, Wired)

Elon Musk’s brain implant startup Neuralink called itself a “small disadvantaged business” to the federal government: Despite a valuation of $9 billion and ownership by the world’s richest man, Neuralink claims it’s a “small disadvantaged business” — a federal contracting designation meant for companies owned by someone belonging to a socially or economically disadvantaged group with a net worth of less than $850,000. Although there is no evidence Neuralink has received any federal contracts under this designation, the DOJ in the past has prosecuted those who falsely claimed this status. (Marco Quiroz-Gutierrez, Fortune)

Weaponization of the Government

Trump administration appeals Jenner & Block win over executive order: Four firms have filed legal action challenging Trump’s orders: Jenner & Block, Perkins Coie, WilmerHale, and Susman Godfrey. Judges ruled in the firms’ favor in each of their challenges. At least ten firms struck deals with Trump, resulting in nearly $1 billion in promised free legal work on causes aligned with the administration. (Ella Lee, The Hill)

🔎 See Also: Big law firms bowed to Trump. A corps of “little guys” jumped in to fight him (Elizabeth Williamson, New York Times)

Senators press incoming CBS owner on Trump’s claim of settlement side deal: Senators Elizabeth Warren, Bernie Sanders, and Ron Wyden asked Skydance Media CEO David Ellison if there is any truth to President Trump’s claim that Paramount is actually paying him $32 million to settle his lawsuit, double what was announced: $16 million in direct compensation plus $16 million to $19 million in advertisements and public service announcements supporting conservative causes. They also asked Ellison if he was involved in the decision to cancel “The Late Show With Stephen Colbert.” (Jeremy Barr, Washington Post)

Trump’s student arrests, and the lawsuit fighting them, tread new ground: The Trump administration’s efforts to deport foreign students who espouse pro-Palestinian views push the bounds of executive power. The Supreme Court has held that noncitizens in the U.S. have the same First Amendment rights as citizens in several contexts. But experts warn that it’s precisely because the administration’s actions are so novel that legal challenges carry some risk. (Zach Montague, New York Times)

Even if Harvard wins, the Trump fight won’t go away: Legal analysts say Harvard has a strong case that the administration improperly cut $2.2 billion in federal funding, but President Trump still has many ways to inflict damage on the university. (Jess Bravin and Sara Randazzo, Wall Street Journal)

Middle East Conflicts

The for-profit companies behind Israeli-U.S. nonprofit Gaza aid plan: Critics, including the United Nations and most of the international humanitarian aid community, say the U.S.- and Israeli-backed Gaza Humanitarian Foundation is designed to further Israeli aims by selectively and inadequately providing assistance and putting the lives of Palestinians in danger. Like much of what happens inside Gaza, the origins and operations of the GHF remain obscure. (Karen DeYoung and Cate Brown, Washington Post)

U.S. nonprofits funnel millions to Israeli army volunteers: At least 20 U.S.-based charities are funding programs recruiting American volunteers for the Israeli military. Since October 7, 2023, it is estimated that 7,000 lone soldiers from the U.S. have volunteered to prop up an Israeli military facing its biggest recruitment crisis in decades. (Georgia Gee and Akela Lacy, The Intercept)

Police Misconduct

State cops quietly tag thousands as gang members — and feed their names to ICE: State and local police gang databases are known to be faulty and aren’t subject to judicial review. Many of these databases are directly accessible to federal immigration authorities. (Chris Gelardi, The Intercept)

Defense and Veterans Affairs

Marines will begin withdrawing from Los Angeles: Pentagon officials will begin withdrawing 700 active-duty Marines who were sent to Los Angeles last month. The withdrawal follows the departure of nearly 2,000 California National Guard soldiers and a contingent of about 150 specialized Guard firefighters. (Shawn Hubler and Eric Schmitt, New York Times)

Lawmakers tried to lock down money meant to improve troops’ lives so it can’t go to immigration and border ops. It didn’t work: Military barracks have long been plagued by maintenance issues. As lawmakers negotiate next year’s defense bill, some are sounding alarms over the possibility that funds intended to improve housing for junior troops could instead be diverted to immigration enforcement. (Kelsey Baker, Business Insider)

Research offers link between burn pit smoke and serious brain injuries: A new medical study set to be published this month indicates that individuals who served around burn pit smoke may face a greater risk of mental health and brain trauma issues. (Leo Shane III, Military Times)

“Profound alarm”: Veterans agency roiled by fight over anti-discrimination provisions: The VA has enthusiastically joined President Trump’s war on DEI — demanding that staffers report colleagues who engage in diversity initiatives, banning LGBTQ+ pride flags from VA hospitals, and removing language from hospital bylaws that barred discrimination based on patients’ marital status or political views. (Aaron Glantz, The Guardian)

Hegseth replaces Naval Academy superintendent: The administration previously fired two other military leaders who were the first women to serve in their positions. (Riley Ceder, Military Times)

Business and Finance

Employees at the nation’s consumer financial watchdog say it’s become toothless under Trump: The Consumer Financial Protection Bureau has been mostly inoperable for nearly six months — employees say they essentially spend the workday sitting on their hands, forbidden from doing any work by directive from the White House. Instead, its main function now seems to be undoing its previous oversight and enforcement work. (Ken Sweet, Associated Press)

🔎 See Also: Senators demand answers after case dropped against Navy Federal for charging troops overdraft fees (Konstantin Toropin, Military.com)

🔎 See Also: Federal judge reverses rule that would have removed medical debt from credit reports (Adriana Morga and Cora Lewis, Associated Press)

Labor Department proposes more than 60 rule changes in a push to deregulate workplaces: The Department of Labor is aiming to rewrite or repeal more than 60 “obsolete” workplace regulations, ranging from minimum wage requirements for home health care workers to standards governing exposure to harmful substances. If approved, the changes would also affect working conditions on farms, at constructions sites, and in mines. (Catthy Bussewitz, Associated Press)

Tech

Trump to sign stablecoin bill that may make it easier to bribe the president: The president signed into law the GENIUS Act, the first national cryptocurrency legislation that sets regulations for stablecoins. A big concern is that the law prevents members of Congress from owning or promoting stablecoins, but not the president. (Ashley Belanger, Ars Technica)

Global hack on Microsoft product hits U.S., state agencies, researchers say: Hackers exploited a security flaw in Microsoft server software to launch a global attack on government agencies and businesses in the past few days, breaching U.S. federal and state agencies, universities, and energy companies. The attack is the latest cybersecurity embarrassment for Microsoft. (Ellen Nakashima, Yvonne Wingett Sanchez, and Joseph Menn, Washington Post)

Health Care

HHS finalizes thousands of layoffs after Supreme Court decision: HHS last week finalized the layoffs of thousands of workers, including people who coordinated travel for overseas drug facility inspectors, communications staff members, public records officials, and employees who oversaw contracts related to medical research. (Christina Jewett and Benjamin Mueller, New York Times)

Health insurers push huge premium hikes as profits soar: The six largest health insurers are pushing to raise Americans’ premiums by as much as 66% for some policies. The proposed increases come as insurers dole out billions to further enrich executives and shareholders. (Veronica Riccobene and Helen Santoro, The Lever)

Cuts to food benefits stand in the way of RFK Jr.’s goals for a healthier national diet: The Trump administration has said improving American nutrition is a priority, but deep cuts to federal food assistance could lead people to opt for cheaper and unhealthier alternatives. (Renuka Rayasam, KFF Health News)

ICYMI

Immigration and Border Security:

→ Under Trump, Border Patrol arrests immigrants far from U.S.-Mexico border

→ Trump administration can lift deportation protections for thousands from Afghanistan and Cameroon, court says

→ Trump administration resumes third-country deportation flights

→ Despite vow to remove the worst offenders, ICE data shows less than 1% of deportees had murder convictions

→ ICE chief stands by mask use in immigration raids, despite criticism

→ ICE lawyers are hiding their names in immigration court

→ Inside “Alligator Alcatraz,” detainees report relentless mosquitoes, limited water

→ Migrants at ICE jail in Miami made to kneel to eat “like dogs”, report alleges

Other News:

→ OPM to lose about 1,000 jobs, director says

→ NIH official fired amid probe of contract used to potentially hire spouse, officials say

→ Over 1 in 5 high-level Trump picks held crypto, Post analysis finds

→ DOJ fires Maurene Comey, daughter of James Comey and prosecutor in Sean Combs and Ghislaine Maxwell cases

→ Trump’s intel chief Tulsi Gabbard reignites political battles with 2016 election documents on Russia

→ It’s “frighteningly likely” many U.S. courts will overlook AI errors, expert says

→ National Archives releases thousands of Martin Luther King Jr. files

Upcoming Events

📌 Counting the Money: Preventing Fraud and Abuse in VA’s Bonus Payment Practices for VA Employees. House Committee on Veterans’ Affairs; Subcommittee on Oversight and Investigations. Tuesday, July 22, 2:00 p.m., 360 Cannon House Office Building.

📌 American Resilience: Examining SBA Disaster Assistance Programs. House Committee on Small Business; Subcommittee on Oversight, Investigations, and Regulations. Wednesday, July 23, 10:00 a.m., 2360 Rayburn House Office Building.

Hot Docs

🔥📃 GAO - Priority Open Recommendations: National Telecommunications and Information Administration. GAO-25-108178 (PDF)

Nominations & Appointments

Nominations

• Jeffrey Anderson - U.S. Representative, Council of the International Civil Aviation Organization
• Lt. Gen. Shawn Bratton - Vice Chief of Space Operations, U.S. Air Force
• Gen. Thomas Bussiere - Vice Chief of Staff, U.S. Air Force
• Julie Callahan - Chief Agricultural Negotiator, Office of the United States Trade Representative
• Joshua D. Dunlap - Judge, U.S. Court of Appeals for the 1st Circuit
• Jerome Francis Gorgon Jr. - United States Attorney for the Eastern District of Michigan
• Arthur Graham - Member of the Board of Directors, Tennessee Valley Authority
• Paul Hollis - Director of the Mint
• Ryan Anthony Kriegshauser - United States Attorney for the District of Kansas
• David LaCerte - Member, Federal Energy Regulatory Commission
• Todd Lindsey - Chief Financial Officer, Department of Agriculture
• Scott Mayer - Member, National Labor Relations Board
• William W. Mercer - Judge, U.S. District Court for the District of Montana
• James Murphy - Member, National Labor Relations Board
• Dan Negrea - U.S. Representative, Economic and Social Council of the United Nations
• Eric Chunyee Tung - Judge, U.S. Court of Appeals for the 9th Circuit
• John Walk - Inspector General, Department of Agriculture

Withdrawals

• Ryan Cote - Assistant Secretary of Veterans Affairs (Information and Technology)
• Karen Evans - Under Secretary for Management, Department of Homeland Security
• David Rader - Assistant Secretary of Commerce