Trump expands executive power: EO on independent agencies, NDA for federal workers, AI oversight EO, financial deregulation, rule of law crisis

Trump signed EO establishing oversight of AI models (voluntary 30-day review, NSA discretion) after internal chaos; Cato warns of weaponization. Also signed EO bringing SEC, FTC under White House control (5/23) and proposed NDAs for all federal workers. Financial deregulation and bank charter expansion. New EO (May 19) on fintech/crypto access to Fed payment systems. Trump supports CFTC authority over prediction markets. Nondelegation doctrine case (EPA) at Supreme Court. White House centralizing grant decisions under political appointees—new OMB proposal gives political appointees final say on research grants (45-day comment period). New: Trump now proposes putting political goals above objective criteria for all federal grants, a major escalation beyond the August 2025 EO, potentially politicizing billions in research, education, and public safety funding. Analysis warns this will limit reach and isolate US research globally. Bloomberg analysis finds Trump's deregulation plan underperforming. Hegseth threatening to reverse women's combat roles; WARRIOR Act and NDAA amendments. 94% of legal experts say Trump's second term is a greater threat to rule of law; nearly half of federal judges fear harassment. Threats against White House rising; 324 threats against 253 federal judges this year, with judges warning rhetoric is eroding trust. White House launched aliens.gov platform. NDA proposal advancing with First Amendment concerns. New analysis of AI EO highlights flip-flop and credibility questions. Trump signed EO stripping job protections from ~8,000 senior federal employees (Schedule Policy/Career), reviving Schedule F. New analysis reveals the narrow scope (8,000 vs. 50,000) is a strategic move to avoid the major questions doctrine and survive legal challenges; NTEU has filed a Supreme Court petition on Thunder Basin that could reshape how these challenges are heard. Also signed EO closing de minimis customs loophole. Congress held hearing on AI threat to critical infrastructure, with CISA/NSA warnings. Altman, Amodei, Hassabis warned Congress that AI lowers bioweapon barriers, pushing for mandatory DNA screening (S. 3741). Congress's own intelligence bureau is monitoring public opposition to AI data centers, despite no threats. Trump signed AI EO for voluntary pre-review of frontier models, reversing earlier revocation; industry support but enforcement doubts due to CISA funding cuts. New: White House signaled further AI policy direction with new EO outlining four actions: strengthening federal systems, cyber clearinghouse, benchmarking frontier models. Trump invoked Defense Production Act for $700M coal push, including new plant in WV, signaling use of emergency powers for fossil fuels. SCOTUS issued two rulings (FCC 8-1, SEC 9-0) upholding federal agency enforcement powers, a notable counterpoint to anti-regulatory trends and the nondelegation debate. Pentagon under Hegseth redesignated press office as SCIF to restrict journalist access, raising transparency concerns. AI security is becoming a defense procurement race, with Anthropic dispute highlighting tensions between values and government access; Anthropic now easing tensions with White House ahead of IPO plans. House AI deal collapses as bipartisan support wanes; state preemption clause is key sticking point—Democrats want state-level action preserved, GOP and White House want less bureaucracy. Passage before 2027 looks dead. Trump reportedly demands 10% stake in AI startups, signaling potential policy shift; now floating government equity stakes in leading AI firms, with White House meeting planned. Trump AI Adviser Sriram Krishnan leaving White House, plans to influence policy from outside, signaling internal friction. Krishnan departure confirmed; list of resignations includes Gabbard, Kent tied to policy disputes. SCOTUS preview highlights upcoming cases on birthright citizenship and independent agency powers that could further reshape executive authority. New: Congress pushes bipartisan AI guardrails proposal, though details thin. Federal judge struck down Trump's $100k H-1B visa fee as unlawful, another judicial check on executive overreach in immigration policy. 20-state lawsuit, nationwide block, appeal expected. New Brookings analysis details Trump's shift from rules-based to discretionary tariff policy, with major implications for trade and executive power. New: DOJ scaling back election-integrity operations ahead of 2026 midterms, raising concerns about coordination and response to threats. New: AI political persuasion arms race: Stanford research shows chatbots 4x more persuasive than ads, with trade-off in accuracy; Anthropic calls for pause; implications for election integrity and regulation. New: The Great American AI Act introduced, blocking states from regulating AI for three years—a direct federal preemption move targeting California's watermarking laws. This escalates the state vs. federal power struggle over AI regulation. New: White House green card policy changes (May 22 memo) are causing chaos in immigration system, with attorneys reporting fear and uncertainty among applicants. Personal stories highlight human cost of discretionary enforcement. New: White House touts policy wins on reducing dependency and boosting economy, but inflation above 4% undercuts messaging. New today: Devlin Barrett interview details Trump's takeover of DOJ, reinforcing rule of law concerns. New OMB proposal to prioritize political loyalty over objective criteria for federal grants is a major escalation in executive power. Latest: Schedule F implementation moving forward with thousands transferred. Newsom accuses Trump of using DOJ for political retaliation. Weekly policy pulse covers AI export controls (Anthropic export mandate, low AI bill odds). Anthropic and White House clash over Fable 5 export controls, highlighting tensions between security and innovation. New from today's reading: Slotkin grills OMB nominee on free speech and executive overreach. Thunder Basin case at SCOTUS could reshape how constitutional claims are heard. White House issued two quantum computing EOs (post-quantum cryptography, accelerating innovation). Brookings analysis contrasts AI governance models, showing shift from risk management to execution-focused CAIOC. New from today's articles: White House is quietly bottlenecking AI—OpenAI's GPT-5.6 now faces customer-by-customer approval from the White House, following the Anthropic Fable/Mythos shutdown, confirming a pattern of executive branch bottlenecking without statutory authority. Trump's new quantum EOs set hard deadlines for post-quantum cybersecurity migration (2027 pilot, 2030-2031 migration), with industry reaction focused on implementation timelines.