Federal Recap: August Edition

1. President Trump Launches a New Campaign: He’s not running for office again. Not yet anyway, but he has started a campaign against Fed Chair Jerome Powell. Using his “flood the zone”strategy, Trump has attacked Powell, questioned Fed spending, and floated potential replacements. He is even threatening a lawsuit over the Fed's recent renovations to their DC headquarters. His goal is to pressure Powell into cutting rates or stepping down. Either way, Trump is hellbent on turning him into a scapegoat for the country’s economic challenges, and he is painting Powell into a corner.

   
   

2. The Era of the Coin: Forget nickels and dimes. Digital currency is having its moment. With the President’s backing, long-time crypto advocates in Congress saw three major digital asset bills pass the House last month. This was followed by a new executive order allowing 401(k) crypto investments.

   
   

3. The Change Whiplash Continues at HHS: This month, HHS announced a wind-down of 22 mRNA vaccine contracts totaling around $500 million under Biomedical Advanced Research and Development Authority. Citing concerns over efficacy against some viruses, the agency plans to reallocate funding to “safer, broader vaccine platforms”, public health experts warned this could critically weaken preparedness for widespread health crises and derail mRNA innovation.

   
   

4. AI Regulation is Finally Having It’s Day: Lawmakers have shifted from holding hearings to drafting real AI legislation. New bills aim to regulate federal use, mandate transparency in AI-generated information which could include in healthcare settings, and protect infrastructure.The bipartisan push frames AI as both a national security and economic priority. All signals point to AI being a major policy issue ahead in 2025.

   
   

5. They’re In and then Out Again:In late July, a federal judge ruled the President’s removal of NCUA Board members Todd Harper and Tonya Otsuka unlawful, allowing them to attend July's month’s board meeting. The next day, a federal appeals court issued a stay pending appeal, keeping both off the board until the case is resolved. One day they’re on, one day they’re off. It’s a lot to keep up with.

   
   

6. The President Keeps the EO Machine Cranking: Last month’s insights included an overview of the Presidential playbook to reorganize the federal government regarding executive order. The EO activity has only continued at an unprecedented pace with more than 20 issued in the last 30 days, covering everything from crypto investments in 401(k)s to tariffs to data center infrastructure to federal grants.