The Paper Trail: September 1, 2026

DHS Uses Obscure Law to Snoop; DOD Gets Stake in Venezuela’s Oil; Kalshi Suspends House Candidate, Permanently Bans George Santos

September 1, 2026

Iran War

The War on “Narcoterrorists”

Weaponization of the Government

Prediction Markets

States can regulate prediction markets as gambling, federal appeals court rules

The Ninth Circuit Court of Appeals ruled states can regulate prediction markets like gambling. All but six states argue that these platforms should be subjected to state gaming laws and taxes. Legal experts believe the matter will ultimately be settled by the Supreme Court.

(Marshall Cohen, CNN)

Kalshi suspends GOP House candidate for betting on her own race
(Mariana Alfaro, Washington Post)
Kalshi bans former GOP congressman George Santos for life
(Violet Jira, Washington Post)

Police Misconduct

Police are spending opioid settlement funds on Flock cameras

At least 19 local law enforcement agencies have used opioid lawsuit settlement money to procure Flock cameras and other automated license plate readers. Local officials have come under fire for spending the funds on policing equipment instead of addiction prevention and treatment services.

(Schuyler Mitchell, Mother Jones)

Cities terminate Flock contracts at record pace in August
(Cyrus Farivar, Ars Technica)

Defense and Veterans Affairs

Pentagon secretly installs military influencers in civilian roles

The DOD has secretly installed several conservative military veterans with large online followings in government roles, declining to disclose their assignments as they amplify the defense secretary’s viewpoints and attack administration critics.

(Dan Lamothe and Tara Copp, Washington Post)

Fired journalists at independent military publication sue Pentagon
(Minho Kim, New York Times)

Hegseth’s purge of top generals leaves the Army rudderless

A series of firings and feuds initiated by the defense secretary has left the Army essentially rudderless as it struggles to deal with the threat posed by cheap drones and missiles that have pounded U.S. bases in the Middle East.

(Greg Jaffe et al., New York Times)

Army Secretary Driscoll resigns after months-long turf war with Hegseth
(Filip Timotija, The Hill)

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