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Wednesday, July 2, 2025
China Spying

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8 hours ago
Lauren Gallagher
NatSec
News

Trump DOJ Catches Chinese Agents Spying on U.S. Navy, Trying to Recruit U.S. Servicemen.

PULSE POINTS

❓WHAT HAPPENED: Two Chinese nationals, Yuance Chen and Liren Lai, were arrested for spying on the U.S. Navy and acting as unregistered agents of China’s Ministry of State Security.

👤WHO WAS INVOLVED: U.S. Department of Justice (DOJ), Federal Bureau of Investigation (FBI), Chinese Communist Party (CCP), Yuance Chen, Liren Lai.

📍WHEN & WHERE: June 27, 2025; Houston, Texas and Happy Valley, Oregon

💬KEY QUOTE: “The individuals charged were acting on behalf of a hostile foreign intelligence service—part of the Chinese Communist Party’s broader effort to infiltrate and undermine our institutions,” said FBI Director Kash Patel.

🎯IMPACT: The arrests highlight ongoing Chinese espionage threats and attempts to infiltrate U.S. military institutions.

IN FULL

Two Chinese nationals have been arrested for spying on the U.S. Navy. They are facing charges of allegedly acting as agents for the People’s Republic of China government to collect intelligence from U.S. Navy service members and bases and attempt to recruit military members to carry out tasks for the Ministry of State Security (MSS), China’s main intelligence force. The men are also accused of facilitating a “dead drop” cash payment on the MSS’s behalf.

The U.S. Department of Justice (DOJ) said Chinese nationals Yuance Chen and Liren Lai were arrested by the Federal Bureau of Investigation (FBI) on Friday, June 27, 2025. They are facing charges of carrying out various clandestine intelligence tasks in the U.S. on behalf of the MSS.

“Today’s arrests reflect the FBI’s unwavering commitment to protecting our national security and safeguarding the integrity of our military,” said FBI Director Kash Patel. “The individuals charged were acting on behalf of a hostile foreign intelligence service—part of the Chinese Communist Party’s broader effort to infiltrate and undermine our institutions. Thanks to outstanding coordination with our partners, including NCIS, we disrupted those efforts and sent a clear message: the United States will not tolerate espionage on American soil. Our counterintelligence operations remain focused, vigilant, and relentless.”

Chen was arrested in Happy Valley, Oregon, and Lai was arrested in Houston, Texas, by the FBI with help from the Naval Criminal Investigative Service (NCIS). Attorney General Pam Bondi commented that the Trump administration would not “stand by while hostile nations embed spies in our country.”

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7 hours ago
Lauren Gallagher
NatSec
TECH

North Korean Remote Workers at U.S. Firms Funneled Millions Into Weapons Programs.

PULSE POINTS

❓WHAT HAPPENED: The Department of Justice (DOJ) charged multiple individuals in a scheme where North Korea sent IT workers with fake identities to get remote jobs at U.S. companies. The wages were secretly funneled back to fund North Korea’s weapons program. Several Chinese and Taiwanese nationals were charged, and sensitive U.S. data may have been accessed.

👤WHO WAS INVOLVED: North Korean government, U.S. tech companies, DOJ.

📍WHEN & WHERE: Monday, June 30, 2025, United States, North Korea, and China.

💬KEY QUOTE: “These schemes target and steal from U.S. companies and are designed to evade sanctions and fund the North Korean regime’s illicit programs, including its weapons programs.” – Assistant Attorney General John Eisenberg

🎯IMPACT: This scheme poses a national security threat, involving financial fraud and corporate espionage risks.

IN FULL

On Monday, the Department of Justice (DOJ) announced criminal charges in a scheme by North Korea to fund its weapons program through the salaries of remote information technology (IT) workers employed inadvertently by U.S. companies.

The nationwide operation led to charges and the seizure of financial accounts, websites, and laptops used to execute the fraud. Separate cases in Georgia and Massachusetts exposed that the scheme is generating extensive revenue for North Korea’s government and even supplying workers access to sensitive and proprietary data from the American corporations hiring them.

The North Korean government dispatched thousands of workers with fake or stolen identities to find remote work as IT employees at American companies. These companies believed the workers were hired based in the U.S., when they were actually stationed in North Korea or China. The wages were transferred into accounts controlled by co-conspirators affiliated with North Korea, prosecutors have said.

On Monday, U.S. prosecutors announced the arrest of U.S. national Zhenxing “Danny” Wang of New Jersey. A five-count indictment describes a multi-year fraud scheme by Wang and his co-conspirators to obtain remote IT work with U.S. companies that generated more than $5 million in revenue. The indictment additionally charges six Chinese nationals and two Taiwanese nationals for their roles in the scheme.

Court papers say the conspiracy involved registering financial accounts to receive the proceeds and creating shell companies and fake websites to portray these remote workers as associated with legitimate businesses. Enablers inside the United States facilitated the workers’ remote computer access, creating the illusion that workers were logged in from U.S. locations.

“These schemes target and steal from U.S. companies and are designed to evade sanctions and fund the North Korean regime’s illicit programs, including its weapons programs,” warned Assistant Attorney General John Eisenberg.

Image by Stephan.

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8 hours ago
Sports

Trans Athlete ‘Lia’ Thomas Loses Swim Titles as UPenn Strikes Deal with Trump.

PULSE POINTS

❓WHAT HAPPENED: The University of Pennsylvania has agreed to ban transgender women from its women’s sports teams, resolving a federal civil rights investigation centered on transgender swimmer William “Lia” Thomas.

👤WHO WAS INVOLVED: The University of Pennsylvania, “Lia” Thomas, the U.S. Department of Education, and female athletes.

📍WHEN & WHERE: The resolution was announced on Tuesday, following an investigation launched in February 2025, regarding events during the 2021–2022 season.

💬KEY QUOTE: “The Department commends UPenn for rectifying its past harms against women and girls, and we will continue to fight relentlessly to restore Title IX’s proper application and enforce it to the fullest extent of the law.” – Linda McMahon

🎯IMPACT: The agreement sets a precedent for enforcing biology-based definitions of sex in athletics and pressures other institutions to follow suit.

IN FULL

The University of Pennsylvania has agreed to ban transgender biological males from its women’s sports teams, resolving a federal civil rights investigation centered on former swimmer William “Lia” Thomas. The U.S. Department of Education announced the voluntary agreement Tuesday, stating that Penn violated Title IX by allowing Thomas to compete in women’s events during the 2021–2022 season.

As part of the resolution, Penn will reinstate Division I swimming records and titles to athletes displaced by Thomas’s victories and issue personalized apology letters to each of them, per the Department of Education. The university must adopt “biology-based” definitions of male and female in athletics and publicly commit to barring “males from competing in female athletic programs.”

Education Secretary Linda McMahon called the outcome a “victory for women and girls,” signaling a more aggressive federal stance on enforcing Title IX based on biological sex. She stated: “The Department commends UPenn for rectifying its past harms against women and girls, and we will continue to fight relentlessly to restore Title IX’s proper application and enforce it to the fullest extent of the law.”

Riley Gaines, host of the Gaines for Girls podcast and former University of Kentucky swimmer, expressed her support for the agreement, saying: “From day one, President Trump and Secretary McMahon made it clear that protecting women and girls is a top priority—and today’s agreement with UPenn is proof of that commitment in action.” She added, “This Administration isn’t just talking about women’s equality, but instead actively defending it.”

The agreement pressures other universities and athletic organizations to align with the administration’s interpretation of Title IX. The NCAA’s response, or lack thereof, could shape future legal and policy battles over transgender inclusion in sports.

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By Popular Demand.
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9 hours ago
Politics

DOGE Dividend Guru and Trump Ally Forms PAC to Counter Musk.

PULSE POINTS

❓WHAT HAPPENED: Investor and Trump ally James Fishback launched the “Full Support for Donald” (FSD) PAC to counter Elon Musk’s political “antics.”

👤WHO WAS INVOLVED: James Fishback, Elon Musk, President Donald J. Trump, and key Republican figures.

📍WHEN & WHERE: The FSD PAC was launched on Tuesday, July 1, 2025.

💬KEY QUOTE: “If Elon actually launches a new party to take down Trump, I’m starting a Super PAC to defend the MAGA candidates he targets.” – James Fishback

🎯IMPACT: The PAC aims to protect Trump’s influence within the Republican Party and counter Musk’s potential third-party efforts.

IN FULL

James Fishback, a 30-year-old investor and ally of President Donald J. Trump, has launched the FSD PAC, a super PAC aimed at countering Tesla CEO Elon Musk’s political machinations. The PAC’s name, “Full Support for Donald,” is a direct jab at Tesla’s “Full Self Driving” technology.

Fishback, a former adviser for the Department of Government Efficiency (DOGE) where Musk was also involved, stated that the PAC’s purpose is to ensure Musk does not undermine Trump’s influence within the Republican Party. “There’s real frustration in our movement with Elon and his antics,” Fishback told the media on Monday. He added that while he admires Musk’s private-sector accomplishments, he believes the South African immigrant is “dead wrong” in politics.

The move comes as Musk’s recent comments on X (formerly Twitter) reignited tensions with President Trump. Musk threatened to create a new political party, the “America Party,” in response to disagreements over Trump’s ‘One Big Beautiful Bill,’ which enacts most of the America First leader’s domestic agenda, including stronger border security and immigration enforcement and tax cuts on tips and overtime. Fishback responded by pledging to defend Trump-endorsed candidates, saying, “If Elon actually launches a new party to take down Trump, I’m starting a Super PAC to defend the MAGA candidates he targets.”

Fishback, who founded the investment firm Azoria Partners, has committed $1 million of his own money to the PAC. He previously gained attention for his efforts to deliver DOGE dividends, which aimed to return savings from government cuts to taxpayers. His personal story, as the son of a bus driver and a Colombian immigrant, has also been a point of interest, with Fishback stating, “In ten years, I went from helping my dad sell watermelons on the side of the road to generating over $100 million in trading profits.”

Despite Fishback’s initiative, some GOP insiders downplayed Musk’s potential influence, noting his failed attempt to sway the Wisconsin Supreme Court race earlier this year. One Republican operative remarked, “He’s finished, done, gone. He polls terribly. People hate him.”

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By Popular Demand.
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10 hours ago
Immigration

Trump: Biden’s NYC Migrant Hotel Funding was Diverted to Build ‘Alligator Alcatraz.’

PULSE POINTS

❓WHAT HAPPENED: President Donald J. Trump announced the opening of a new illegal immigrant detention facility, nicknamed “Alligator Alcatraz,” in the Florida Everglades.

👤WHO WAS INVOLVED: President Trump, the Department of Homeland Security (DHS), and Florida officials.

📍WHEN & WHERE: The announcement was made Tuesday during a roundtable discussion following a tour of the Miami-Dade Collier Training Facility in the Florida Everglades.

💬KEY QUOTE: “It’s known as Alligator Alcatraz, which is very appropriate because I looked outside, and that’s not a place I want to go hiking anytime soon,” said President Trump.

🎯IMPACT: The facility is expected to begin processing, detaining, and deporting illegal immigrants immediately, with some reportedly self-deporting already.

IN FULL

The Trump administration used Federal Emergency Management Agency (FEMA) money allocated by the Biden government to house illegal immigrants in luxury hotels in New York City to construct “Alligator Alcatraz” in the Florida Everglades, President Donald J. Trump said Tuesday during a roundtable discussion after touring the facility.

Trump toured the existing Miami-Dade Collier Training Facility, which has, in just eight days, been transformed into a detention center designed to process, detain, and deport illegal immigrants, alongside Florida Governor and former Republican primary rival Ron DeSantis.

“It’s a great honor to be deep in Florida—the Florida Everglades—to open America’s newest migrant detention center, incredibly built, and you’re seeing that yourself,” Trump said. “That’s why I said, let the press join us on our walk so they can see what’s happening. It’s known as Alligator Alcatraz, which is very appropriate because I looked outside, and that’s not a place I want to go hiking anytime soon,” the President joked.

“But very soon, this facility will house some of the most menacing migrants, some of the most vicious people on the planet,” he continued. “We’re surrounded by miles of treacherous swampland, and the only way out is really deportation. And a lot of these people are self-deporting back to their country where they came from,” Trump said.

“Quite a few were amazed at actually the number we took the FEMA money that Joe Biden allocated to pay for the free luxury hotel rooms, where he’s paying hundreds of millions of dollars in New York City, and we used it to build this project,” Trump told reporters. “And Ron [DeSantis], it was just a little fraction of that money—the money they spent on that project,” he added.

Despite a bruising primary campaign against DeSantis, the President said he now rates his relationship with the Florida Governor as “a 10, maybe a 9.9 because there might be a couple of little wounds.”

Addressing DeSantis directly, he said, “You’re my friend and you’ll always be my friend. We may even have some skirmishes in the future. I doubt it, but we’ll always come back because we have blood that seems to match pretty well.”

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By Popular Demand.
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10 hours ago
Politics

Obama White House Aide Who Wished Death on Trump Joins Zohran Mamdani’s Team.

PULSE POINTS

❓WHAT HAPPENED: A former Obama administration staffer who wished death on President Donald J. Trump is now consulting for Zohran Kwame Mamdani’s mayoral campaign in New York City.

👤WHO WAS INVOLVED: Zara Rahim, Zohran Mamdani, and President Trump.

📍WHEN & WHERE: New York City, during Mamdani’s mayoral campaign in 2025.

💬KEY QUOTE: “It’s been against my moral identity to tweet this for the past four years, but, I hope he dies.” – Zara Rahim, October 2020.

🎯IMPACT: Rahim’s hiring raises questions about Mamdani’s political extremism.

IN FULL

A former Obama White House staffer, Zara Rahim, who once publicly wished death on President Donald J. Trump, has taken on a new role as a communications consultant for Zohran Kwame Mamdani, the Democratic Socialist mayoral candidate in New York City. Mamdani, a Uganda-born Muslim extremist who has advocated for “seizing the means of production,” recently secured the Democratic nomination for mayor, making him the frontrunner for the November general election. Campaign finance records show Rahim was paid $3,500 for her consulting work in May.

Rahim gained attention in October 2020 when she posted on X (formerly Twitter), “It’s been against my moral identity to tweet this for the past four years, but, I hope he dies,” referring to President Trump’s COVID-19 diagnosis at the time. Though she later deleted the post, her controversial statements have resurfaced as she works closely with Mamdani, including crafting campaign materials and assisting during his media appearances.

Rahim, a Bangladeshi immigrant, previously worked for Barack Obama’s Office of Digital Strategy and Hillary Clinton’s 2016 campaign. Her other clients have included corporations like Netflix, Nike, and Uber. She has also been vocal on social media, criticizing America and expressing support for the “Defund the Police” movement, a position shared by Mamdani.

Other controversial figures in Mamdani’s campaign include Julian Gerson, his political director, who praised the alleged murderer of a healthcare executive, and Matthew Thomas, a former staffer with a criminal record for soliciting a minor.

Image by Anna Moneymaker/Getty Images.

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By Popular Demand.
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10 hours ago
News
Politics

The Democrats Are the Least Popular Lawmakers in Congress.

PULSE POINTS

❓WHAT HAPPENED: Polling has found the Democratic leadership is unpopular among the majority of the American public ahead of the 2026 midterm elections

👤WHO WAS INVOLVED: Democratic leadership in the House and Senate, American voters.

📍WHEN & WHERE: The polling was released on July 1.

🎯IMPACT: The poll shows lackluster support for the largely leaderless Democrats who are struggling to form a unified front ahead of next year’s pivotal elections.

IN FULL

Newly released polling indicates that the majority of the American public does not approve of the Democrats in Congress and how they are carrying out their duties. The Marist/NPR/PBS News poll, released on July 1, states that 58 percent of American voters disapprove of what the Democratic leaders are doing in Congress, with just 27 percent approving.

Even a majority of Democrats do not approve of the job the Democratic leaders are doing, with only 44 percent saying they back their party’s leaders and 43 percent saying they disapprove.

In contrast, 52 percent of voters say they disapprove of congressional Republicans’ leadership, which is down from 66 percent. Thirty-six percent of voters, including 73 percent of Republicans, say they approve of congressional Republicans’ performance, up from 26 percent in 2024.

While the Republican numbers are still negative overall, they still show that dissatisfaction with the Democrats, particularly among their own voters, runs far deeper, despite the fact that they are in opposition in both congressional chambers.

For months, the Democrats have been largely leaderless following the disastrous defeat of their 2024 presidential candidate, former Vice President Kamala Harris. The party has fractured with no clear figurehead as Senate Minority Leader Chuck Schumer, 74, and former Speaker Nancy Pelosi, 85, lose relevance in their old age, and different factions are vying for influence ahead of the 2026 midterms.

An example was seen earlier this year when gun control activist David Hogg was selected as Vice Chair of the Democratic National Committee (DNC). Soon after his election, Hogg announced he would spend millions of dollars to go after candidates not deemed woke or progressive enough. This led to strong criticism of Hogg and ultimately to his ouster from the position, on the pretext that his election had violated their gender equality policies.

Image by Victoria Pickering.

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11 hours ago
Lawfare

This Biden Judge Is Blocking Trump’s HHS Reforms.

PULSE POINTS

❓WHAT HAPPENED: A federal judge in Rhode Island blocked the Department of Health and Human Services (HHS) from implementing mass layoffs and reorganizing its sub-agencies, alleging a lack of rational basis for the plans.

👤WHO WAS INVOLVED: Judge Melissa DuBose, HHS Secretary Robert F. Kennedy Jr., 19 Democratic attorneys general, and officials from various federal health agencies.

📍WHEN & WHERE: The ruling was issued in Rhode Island on July 1, after legal action was initiated in May following Kennedy’s March announcement of the restructuring plan.

💬KEY QUOTE: “HHS has failed to produce a shred of evidence that services to States and access to critical information would continue uninterrupted,” wrote Judge Melissa DuBose in her opinion.

🎯IMPACT: The ruling halts layoffs and restructuring efforts, leaving thousands of employees in limbo and challenging the executive’s authority to unilaterally reorganize federal agencies.

IN FULL

A federal judge in Rhode Island, appointed by former President Joe Biden, has issued a preliminary injunction against the Department of Health and Human Services (HHS), blocking a reorganization plan that included mass layoffs and the creation of a new agency. The ruling came after 19 Democratic state attorneys general and Washington, D.C., filed a lawsuit in May, arguing that the restructuring would have severe and potentially irreversible consequences for public health services nationwide.

U.S. District Court Judge Melissa DuBose, in her decision, stated that HHS had failed to provide evidence that critical services would remain uninterrupted during the reorganization. “Critical public health services have been interrupted, databases taken offline, status of grants thrown into chaos, technical assistance services gone, and training and consultation services curtailed. These are not unsubstantiated fears,” she claimed.

The restructuring plan, announced by HHS Secretary Robert F. Kennedy Jr. in March, included laying off approximately 10,000 employees and consolidating various offices under a new agency called the Administration for a Healthy America (AHA). Many employees who received layoff notices remain on administrative leave and are still being paid as litigation continues. The judge’s ruling has temporarily halted these efforts, pending further court proceedings.

The plaintiffs expressed concerns about the impact of the reorganization on agencies like the Centers for Disease Control and Prevention (CDC), the FDA’s Tobacco Products Center, and the Office of Head Start. “HHS is the backbone of our nation’s public health and social safety net,” New York Attorney General Letitia James said following the ruling.

Kennedy, testifying before Congress, acknowledged the ongoing court battles and stated that planning for the reorganization continues. He also noted that some layoffs have been reversed, including those of some scientists and researchers, while further cuts might still be required depending on the outcome of the legal challenges. “At that point, we will make decisions,” he said.

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By Popular Demand.
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12 hours ago
Politics

This Trump Ally Was Just Tapped as U.S. Attorney for New Jersey.

PULSE POINTS

❓WHAT HAPPENED: President Donald J. Trump has nominated Alina Habba to serve a full four-year term as the U.S. Attorney for the District of New Jersey.

👤WHO WAS INVOLVED: President Donald Trump, Alina Habba, and the Senate.

📍WHEN & WHERE: Nomination announced Tuesday, July 1; Habba has been serving as Interim U.S. Attorney for the District of New Jersey since March.

💬KEY QUOTE: “Alina will lead with the same diligence and conviction that has defined her career, and she will fight tirelessly to secure a Legal System that is both ‘Fair and Just’ for the wonderful people of New Jersey.” – Donald Trump

🎯IMPACT: The nomination now heads to the Senate for consideration, as Habba continues to serve in her interim role.

IN FULL

President Donald J. Trump has nominated Alina Habba to serve a full four-year term as U.S. Attorney for the District of New Jersey, the White House announced on Tuesday. Habba is one of over two dozen nominations sent to the Senate for their consideration.

In March, Trump appointed Habba as the Interim U.S. Attorney for the District of New Jersey, after the then-interim U.S. Attorney for New Jersey, John Giordani, was nominated to serve as the U.S  Ambassador to Namibia.

“It is with great pleasure that I am announcing Alina Habba, Esq., who is currently serving as Counselor to the President, and has represented me for a long time, will be our interim U.S. Attorney for the District of New Jersey, her Home State, effective immediately,” Trump wrote at the time. “Alina will lead with the same diligence and conviction that has defined her career, and she will fight tirelessly to secure a Legal System that is both ‘Fair and Just’ for the wonderful people of New Jersey.”

During her time in the interim role, Habba oversaw charges brought against Rep. LaMonica McIver (D-NJ), who was indicted on federal charges of forcibly impeding and interfering with federal officers outside the Delaney Hall Federal Immigration Facility in Newark, New Jersey, on May 9.

Image by Gage Skidmore.

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By Popular Demand.
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12 hours ago
Immigration

Trump Is Now Detaining Illegals From Three Continents at Gitmo.

PULSE POINTS

❓WHAT HAPPENED: The Trump administration has expanded its use of Guantanamo Bay to house illegal immigrant detainees from many countries, including China, Jamaica, Liberia, and even the United Kingdom, according to internal U.S. government records.

👤WHO WAS INVOLVED: President Donald J. Trump, U.S. immigration authorities, detainees from multiple nations, and officials from the Departments of Homeland Security (DHS) and Defense (DoD).

📍WHEN & WHERE: Guantanamo Bay, Cuba, with reports of expanded transfers beginning in recent months.

💬KEY QUOTE: “The worst of the worst will be held at the base,” President Trump stated.

🎯IMPACT: The Trump White House emphasizes the use of Guantanamo Bay boosts deterrence against future illegal crossings into the United States and that the facility is being used to house high-risk detainees.

IN FULL

The Trump administration has recently expanded its use of the Guantanamo Bay naval base in Cuba to house illegal immigrant detainees from a wide array of countries, including China, Jamaica, Liberia, and even the United Kingdom, according to internal U.S. government records. These detainees are held separately from the terrorism suspects who remain at the facility.

Officials have stated that most of the detainees are classified as “high-risk,” a designation given to migrants with serious criminal records, histories of disruptive behavior, or suspected gang affiliations. However, the administration has also utilized Guantanamo Bay to detain some migrants it deems “low-risk,” who lack significant criminal histories and are primarily held for civil immigration violations.

The decision to transfer detainees from regions such as Africa, Asia, and Europe to Guantanamo comes as the U.S. immigration detention system exceeds its congressionally funded capacity. However, the ‘One Big Beautiful Bill,’ which is nearing final passage in Congress, would expand funding for federal detention facilities—along with increasing the number of U.S. Immigration and Customs Enforcement (ICE) agents—and provide greater capacity to detain illegals.

The administration’s use of Guantanamo Bay reflects its broader crackdown on illegal immigration. This includes the establishment of detention centers in other locations, such as the wetlands of the Everglades, where a facility dubbed “Alligator Alcatraz” was unveiled by President Trump during a site visit on Tuesday.

The Department of Defense (DoD) reported spending $21 million on flights to transfer detainees to the Guantanamo base as of April.

Image by Paul Keller.

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By Popular Demand.
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13 hours ago
Politics

Tesla Shares Are Dipping Amid Musk-Trump Spending Bill Clash.

PULSE POINTS

❓WHAT HAPPENED: Tesla shares dropped sharply after a renewed public dispute between Elon Musk and President Donald J. Trump over the ‘One Big Beautiful Bill.’

👤WHO WAS INVOLVED: Tesla CEO Elon Musk, President Trump, and Tesla investors.

📍WHEN & WHERE: The stock drop occurred on Tuesday morning, following Musk’s comments over the weekend and on Monday. The dispute has played out publicly on Musk’s X platform (formerly Twitter) and elsewhere.

💬KEY QUOTE: “The bill would destroy millions of jobs in America.” – Elon Musk

🎯IMPACT: Tesla’s stock dropped 7.1 percent in early trading and remains down 5.4 percent as of late afternoon. The ongoing dispute is causing investor concerns over government scrutiny of Musk’s ventures.

IN FULL

Tesla shares dipped Tuesday morning following a public spat between Tesla CEO Elon Musk and President Donald J. Trump over the ‘One Big Beautiful Bill,’ which has passed the Senate and now heads back to the House for final approval. The electric vehicle company’s stock price fell 23 points in early trading, or 7.1 percent, and was down roughly 5.4 percent at $300.60 per share as of 1:50 PM EST.

Musk reignited the argument on Saturday by criticizing the bill, which President Trump is urging Congress to pass by July 4. Musk described the legislation as a “big, beautiful bill” that would “destroy millions of jobs in America.” On Monday, Musk escalated his rhetoric, suggesting he might form a new political party and support primary challenges against Republicans who vote in favor of the legislation.

President Trump responded Tuesday morning, highlighting the subsidies Musk’s companies receive from the government. He also suggested that the Department of Government Efficiency (DOGE), which Musk previously led before stepping down in May, might investigate government spending linked to Musk’s ventures.

Wedbush tech analyst Dan Ives noted in a report that investor concerns about increased scrutiny from the Trump administration could lead to weak trading early on, but he expects the situation to “settle at the end of the day.” Musk has previously called the reconciliation bill, which funds U.S. Immigration and Customs Enforcement (ICE) operations and border security while cutting taxes on tips, overtime, and social security, “pork-filled” and a “disgusting abomination.”

Tesla stock prices have fallen roughly 21 percent since the start of the year, with Musk’s involvement in political disputes becoming a significant issue for investors. The company is set to release its quarterly earnings tomorrow.

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