Good Tuesday evening. In this edition: Trump reverses course on Strait of Hormuz toll; Democrats block defense policy bill over Iran war; and justices testify on security threats.
Plus, ICE, Darline Graham and Russia sanctions.
Iran War
President Trump abandoned his proposal to charge ships a 20% fee for transiting the Strait of Hormuz after speaking with Gulf leaders who opposed the plan, saying they would instead make major investments in the United States.
"Based on highly productive conversations with Middle East leadership, I have decided to replace the 20% United States Reimbursement Fee with Trade and Investment Deals that the various Gulf States will be making into the United States," he wrote on Truth Social.
"Those Investments will be MASSIVE but, at the same time, extraordinarily good for them, and their future."
The president announced the proposed fee on Monday, arguing the U.S. should be compensated for protecting commercial shipping through the strategic waterway.
"We can't be expected to do that for nothing, unlike we had for many years," he told Fox News. "We guarded it for nothing, and now we're going to guard it, we're going to get paid for guarding it. A lot of money."
The proposal likely would have conflicted with international law governing transit through international waters and contradicted Secretary of State Marco Rubio'sstatement last month that "no country is allowed to charge tolls or fees on an international waterway."
"I don't like the concept of a fee. But at the same time, it's not fair that we're protecting this strait for the entire world."
The president said he received calls from "kings and emirs" and other leaders who instead proposed investing money in the United States.
"They said we'd love to do it a different way. We'd love to invest in the United States with billions and billions of dollars," he told reporters. "I think it's actually much better."
The proposal came as the U.S. and Iran jockey for control of the strategic waterway, through which about one-fifth of the world's oil transited before the war.
The conflict has intensified over the past week following the collapse of the ceasefire, and the U.S. military launched another round of strikes Tuesday afternoon ahead of its Iranian naval blockade going back into effect.
Senate Democrats blocked the annual defense policy bill in protest of President Trump's handling of the Iran war, an unusual move for legislation that typically passes with broad bipartisan support.
The procedural vote was 50–46, well short of the 60 votes needed to advance, with all Democrats voting in opposition.
Senate Majority Leader John Thune (R-SD) switched his vote to "no" so he can later call for a revote, and four senators missed the vote: John Fetterman (D-PA), Jim Justice (R-WV), Mitch McConnell (R-KY) and Alex Padilla (D-CA).
This year's National Defense Authorization Act (NDAA), which would authorize $1.15 trillion for the Pentagon, cleared the Armed Services Committee last month on a bipartisan 18–9 vote.
But Democrats have said they will not support the measure unless Congress imposes guardrails on the president's war against Iran, which began in February without congressional authorization.
Senate Minority Leader Chuck Schumer (D-NY) argued it was irresponsible for Congress to advance the bill while the war continues without congressional authorization.
"The NDAA cannot become a permission slip for that recklessness that we see occurring in Iran," he said ahead of the vote. "Donald Trump does not get to drag the American people deeper into a war he cannot explain and does not know how to end, and then demand Congress look the other way."
Sen. Thune urged Democrats to support the measure, highlighting provisions including a 3.6% pay raise for troops and investments in drone technology and shipbuilding.
"Our colleagues on the Armed Services Committee have put forward a strong bill — a strong bill for our national security and for the men and women who defend our nation," he said. "I certainly hope that Democrats won't now put politics ahead of support for our men and women in uniform. But that's up to them."
It's unclear how the bill will move forward.
Republicans are waiting for Democrats to propose a path that would allow the Senate to take up the legislation.
Justices Elena Kagan and Amy Coney Barrett testified before House and Senate committees in support of the Supreme Court's fiscal 2027 budget request, which seeks a 7% funding increase, largely to address security concerns.
It marked the first time since 2019 that Supreme Court justices have testified on Capitol Hill.
Justice Kagan said the Supreme Court Police has reported an estimated 38% increase in threats this year, following a 25% increase in 2025.
"For some of us, those threats have come very close, and all of us live with the knowledge that they may again materialize," she told lawmakers. "But, as the chief justice has said, all members of the court continue to do their jobs as they believe legally right, adjudicating cases without fear or favor."
Justice Barrett said the "constant" security threats have taken a toll on justices' families, recalling how she had to explain to her 12-year-old why she was wearing a bulletproof vest in the wake of the court's decision to overturn Roe v. Wade.
"They have required … my children to think about and see things that children should not have to see or think about," she said. "I didn't expect that performing this service was going to put me in the position of explaining to my children what a bulletproof vest was and why I had to wear one."
While much of the questioning focused on security, lawmakers also delved into issues including the court's increased use of its so-called shadow docket, as well as efforts to establish an enforcement mechanism for its code of ethics.
The Supreme Court adopted its first formal code of ethics in 2023, requiring justices to uphold judicial integrity, avoid impropriety, disqualify themselves from conflicted cases, manage extrajudicial activities and refrain from partisan political activity.
But the high court has no independent body to ensure justices comply with the code, unlike the other branches of government.
Justice Kagan said she supported an enforcement mechanism, such as a panel of respected federal judges, to help police justices' conduct. She said it would be important that the system "come from the judiciary itself."
"I think that we would be better off with an enforcement mechanism," she said. "If nothing else, for public confidence. And also, an enforcement mechanism can also make clear that not every accusation, not every charge has anything to it."
Justice Barrett said she and her colleagues were "fully committed" to the ethics code but was "less certain" about creating a formal enforcement process, citing "complexities."
"I'm certainly fully committed to the code, as are all of our colleagues, but because of some of the complexities that Justice Kagan identified, I'm just not quite sure," she told lawmakers.
The Trump administrationordered Immigration and Customs Enforcement (ICE) to suspend most vehicle stops after two fatal shootings in a little more than a week, according to multiple media reports. ICE officers fatally shot a Colombian driver in Maine on Monday and a Mexican motorist in Houston the previous week, renewing criticism of the agency's tactics following the shooting deaths of two American citizens in Minneapolis earlier this year. Federal agents carrying out President Trump's immigration crackdown have now fatally shot six people, with nearly all of the incidents involving officers firing at people in vehicles.
Darline Graham was sworn into the Senate to fill the seat of her late brother, Sen. Lindsey Graham (R-SC), who died unexpectedly over the weekend. She is the first sibling to directly succeed a deceased senator and the first woman to serve in the Senate from South Carolina, bringing the upper chamber to a record 27 women serving concurrently. South Carolina Gov. Henry McMaster (R) appointed her Monday to serve the remainder of the term, which ends in January 2027. Sen. Lindsey Graham, who was seeking reelection in November, died Saturday night of an aortic dissection at the age of 71. Republicans will now hold a special primary Aug. 11 to choose a nominee to face Democrat Annie Andrews in the general election.
A bipartisan group of senators introduced a bill championed by the late Sen. Graham that would impose sanctions on top Russian officials and steep tariffs on countries that purchase Russian oil. The Senate has come close to passing similar legislation multiple times, but Republicans backed off at the urging of President Trump, who wanted room to negotiate directly with Russia. The president signaled his support for the revised measure in the Oval Office and suggested senators could also add sanctions targeting Iran and Hezbollah. "This is in honor of Lindsey," he told reporters. "There's a good chance that it gets done."
Correction: Monday's Word for Word misstated the branch of the military in which the late Sen. Graham served. He served in the Air Force, Air National Guard and Air Force Reserve. Apologies for the error.
For your radar…
Acting Attorney General Todd Blanche testifies Wednesday at his confirmation hearing before the Senate Judiciary Committee as he seeks to become the permanent head of the Justice Department. Watch LIVE on C-SPAN3 at 9am ET.
Jay Clayton appears before the Senate Intelligence Committee on Wednesday for his confirmation hearing to become director of national intelligence (DNI). Watch LIVE online at 9:30am ET.
Erica Schwartz and Sean Kaufman testify Wednesday before the Senate Health Committee as they seek to be confirmed as CDC director and assistant HHS secretary for preparedness and response, respectively. Watch LIVE online at 10am ET.
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