Week 3: Trump vs. The Courts
Lots of updates, lots of actions, and lots of implications
The news is moving at warp speed. Even the 24/7 news cycle can’t keep up. Never fear—Smartt Takes is here 🦸🏻♀️ to keep you apprised of everything going on, and cut through the chaos to give you reliable, balanced analysis on the key decisions shaping the country. I rely on primary sources and read all the attendant news coverage to provide you with reliable, balanced coverage.
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It’s hard to believe that we’re only in week three of the Trump presidency. From executive orders to legal showdowns, this week saw Trump’s biggest moves yet—from banning transgender athletes to debating U.S. involvement in Gaza. Meanwhile, Elon Musk’s expanding role in government is sparking lawsuits, and Democrats are pushing back.
Let’s get into it.
✍️ Executive Orders
Establishment of Anti-Christian Bias Task Force (READ):
In the EO, Trump accuses the Biden administration of engaging “in an egregious pattern of targeting Christians.” In response, Trump declared that he would establish an anti-Christian bias task force, led by the new Attorney General, Pam Bondi. Bondi will be in charge of “preventing targeted anti-Christian bias and discrimination within the federal government,” as well as “prosecuting anti-Christian violence and vandalism in our society.”
Sovereign Wealth Fund (READ):
Trump made a move to establish a U.S. sovereign wealth fund, to “promote fiscal sustainability”…[and]… “invest in long-term wealth for future generations.” He directs the Secretaries of Treasury and Commerce to develop a plan for establishment within 90 days.
Implications: While former presidents have considered setting up an SWF, none have successfully done so. Trump plans to establish one and use the funds for investment strategies such as purchasing TikTok. What’s not clear, however, is how Trump plans to fund the entity. Details forthcoming, presumably.
Memorandum to Review Funding for Non-Governmental Organizations (READ):
Trump announced that he would direct his agencies to review all existing funding to NGOs. He directs that moving forward, all NGO funding will “align with the interest of the United States” as well as “with the goals and priorities of [his] Administration, as expressed in executive actions.”
Implications: Approximately 1.5 million NGOs receive USG funding. Many of these operate as independent organizations to provide an external check and measure of accountability for the U.S. and other governments’ actions. Revoking funding unless it’s aligned with the Trump administration’s priorities significantly weakens that check both at home and abroad.
Transgender Women in Sports (READ):
Trump signed an executive order banning transgender women from participating in sports. The EO (1) interprets the original Title IX’s law prohibiting sex discrimination and demanding equal athletic opportunity for both genders in sports, as law for barring transgender women from participating in women’s sports; (2) rescinds federal funding for and penalizes schools who refuse to comply; and (3) directs the Department of State to use appropriate measures to ensure that the International Olympic Committee (IOC) complies with the order.
Implications: Until now, the NCAA and the IOC have largely stayed out of the fray. In response to the EO, however, the NCAA immediately changed its policy to ban transgender women in sports, reflecting the EO’s directive. The IOC has allowed transgender women to compete in the Olympics since 2004. As the U.S. is set to host the 2028 Summer Olympics, Trump threatened to review and rescind visas for transgender women planning to compete against women.
Other/Upcoming:
International Criminal Court (ICC): Trump placed sanctions on International Criminal Court staff who assist in investigations against American citizens or allies. The order comes following Israel Prime Minister Benjamin Netanyahu’s visit to the White House. The ICC previously charged the PM with war crimes, issuing a warrant for his arrest.
South Africa: On Friday, Trump issued an executive order addressing the “egregious actions” of South Africa, citing a law that he claims enables the government to seize Afrikaners' private land without compensation. Among other provisions, the order (1) halts U.S. foreign aid to South Africa and (2) offers resettlement assistance to Afrikaners. Afrikaners are a white minority group that was central to the apartheid system, which ended in 1994.
Trump asserts that Afrikaners have since been subjected to oppression and human rights violations. Following the announcement, the leader of an Afrikaner rights group called the move the most significant international development for their community since they lost political power in 1994.
Department of Education (DOE): Following last week’s order to reallocate the DOE’s discretionary funding towards school choice initiatives, the White House told reporters that Trump plans to begin the process of defunding the Department of Education. Smartt Takes will keep an eye out and report accordingly.
🗣️ Announcements
The Riviera of the Middle East
Trump sent shockwaves through the nation when he announced that the United States could consider territorial residence in the Gaza Strip.
Implications: Gaza has been the hotbed of political and violent action for many years, escalating since October 7, 2023, in the new chapter of the Israeli-Palestinian conflict. Before Trump took office, Israel-Palestine agreed to a ceasefire, a fragile deal that has been wavering since its announcement. While Trump has made no deliberate move in the region, this week he suggested that Gaza could become a vacation destination for Americans, deeming it the “Riviera of the Middle East.” Newly appointed Secretary of State Marco Rubio followed Trump’s announcement, tweeting “Make Gaza Beautiful Again.”
While many felt that Trump’s declaration was spur-of-the-moment, and off-the-cuff Trump, the idea mimics one previously introduced by Trump’s son-in-law Jared Kushner. During the first Trump administration, Kushner was a senior foreign policy advisor, who brokered the Abraham Accords, an agreement between the U.A.E.-Israel about Arab relations. Last year, at a Harvard Kennedy School event, Kushner remarked that Gaza would be “very valuable waterfront property.”
Now it seems that Trump intends to, at least, entertain Kushner’s idea. Indeed, he doubled down on Thursday, saying that the U.S. would not put boots on the ground, but would take over the Gaza Strip “at the conclusion of fighting.”
Elon & Payment Systems
The Department of Justice agreed to temporarily restrict the Department of Government Efficiency (DOGE)’s unfettered access to secure payment systems within the Department of the Treasury.
The injunction comes after unions across the nation sued the Treasury for allowing Musk’s team to access sensitive, personal data, including people’s social security numbers, arguing the move was a violation of federal privacy laws. Meanwhile, a judge also blocked DOGE employees and Trump appointees from accessing federal payment systems. A hearing has been set for February 14.
Over the last week, DOGE employees have quickly integrated themselves into federal agencies, gaining access to secure portals and systems often restricted to specific employees. David Lebryk, acting Treasury Secretary, reportedly refused to give Musk’s employee access, leading to infighting and resulting in Lebryk’s exit.
Musk has faced relatively little pushback elsewhere. Indeed, reports confirmed that DOGE employees have been given access to Medicare and Medicaid data (e.g., personally identifiable health information). Separate reports confirmed that DOGE employees received access to Office of Personnel Management (OPM) employee files loaded with sensitive information.
Who are DOGE employees?
Certain employees have been identified as data engineers and techies, ranging from 19 to 24, with little or no prior government experience. Higher-level DOGE staff members appear to be mostly former Musk employees.
Implications: Musk’s sweeping moves across the USG and access to secure payment systems have worried the public and officials alike. In press conferences this week, before the DOJ agreed to restrict DOGE’s access, Trump commended Musk for doing a great job, saying that he was using the data to cut government waste.
Concerns have also arisen after the White House Press Secretary told reporters that Musk will personally identify which DOGE-related issues are a conflict of interest. This worries those who believe that Musk would be able to circumvent or manipulate dealings in his companies’ favor.
Keep an eye out on Trump’s legal strategy…
Various groups and organizations are concerned that the steps being taken by Musk are unconstitutional. As lawsuits are filed, the key thing to pay attention to is how the Trump administration responds to said lawsuits.
If the administration backs down outright—in the case of the Treasury payments—then it appears as though the strategy is simply to see how far their authority goes until they get slapped on the wrist.
If the administration fights the lawsuit or appeals a ruling, then the strategy is likely to escalate the fight to the Supreme Court in order to test the limits of presidential power. Given that conservatives hold a majority on the Supreme Court, Trump is likely banking that the judges will side with him, thus expanding the executive authority of himself and future presidents
Media Matters:
Trump took to Truth Social to protest an $8 million payment to POLITICO that DOGE uncovered. He immediately cancelled any POLITICO subscriptions, accusing the media organization of biased/unfair coverage, saying they shouldn’t receive federal funding.
POLITICO responded to the accusations, noting that they are privately funded and that there are certain government agencies who subscribe to Politico’s paid service, Politico Pro.
Implications: Politico Pro is a strong tracking service used by most federal agencies and anyone who tracks legislative and regulatory actions. We used it regularly when I was working in DC. It takes the grunt work out of needing to do the research and bill analysis oneself. While losing the resource won’t immediately impact USG work, it will create a heavier burden on officials who relied on it to be able to keep up with the goings-on of Washington.
Other Announcements:
Trump suggested that the U.S. could continue providing aid to Ukraine in exchange for access to/supply of the country’s rare earth minerals.
Implications: China currently holds the largest reserve of rare earth minerals, which can be used to manufacture high-tech devices, among other things. The move suggests greater competition in the emerging U.S.-China technology race, as well as a pivot in U.S. foreign aid policy. Countries around the world, including Russia, slammed the proposal. On Friday, however, Ukrainian president Volodimir Zelenskyy responded to Trump that they should “do a deal.”
📚 Policy Changes
Agency Shutdowns
U.S Agency for International Development (USAID) - On Friday, a federal judge halted a Trump/Musk directive to lay off nearly the entire USAID government agency.
Timeline:
On Sunday, Elon Musk tweeted that USAID was a “criminal agency.” USAID, an independent agency established by Congress during the Kennedy administration to combat Soviet influence, was effectively shuttered this week.
On Monday, workers were informed that their office was closed and to work remotely.
By Wednesday, employees at home and abroad received a memo that the entire global workforce would be placed on administrative leave, and the website had been updated to reflect the same message.
Implications: The political, legal, and global implications of the move are worth unpacking.
Political:
Politically speaking, USAID is an independent agency codified into law by Congress in the late 1990s, and subsequently funded by Congress. Senate Republicans and the White House unsuccessfully attempted to overhaul the agency during the first Trump administration; however, this time, it appears they plan to bypass Congress and start making agency changes on their own. If successful, this has huge implications for the level of power Trump wields, in simply abolishing whole government agencies and laying off tens of thousands of people. Trump intends to overhaul several other agencies including DOE, EPA, CIA, CFPB, and NOAA.
Legal:
The Constitution gives Congress the power to establish federal agencies. Because USAID is an independent agency codified into law by Congress, the checks and balances system would suggest that a president cannot single-handedly abolish an agency. In response, Senate Democrats penned a letter accusing the Trump administration of violating the law by not consulting with Congress. Secretary of State (and former Sen.) Marco Rubio noted that the USAID overhaul would be done with the consultation of Congress, but the move is still likely to be challenged. Again, keep an eye out for the aforementioned Trump legal strategy.
Global:
USAID was first developed as a soft-power tool to combat Soviet Russia’s global influence. Eliminating it revokes U.S. presence and aid in countries around the world. Last year, USAID had a $40 billion budget and assisted over 130 countries. Members on both sides have agreed that the agency is an effective tool to counter China’s increasing influence abroad, through its own foreign assistance and development. Without USAID, the U.S. loses another soft-power tool in its arsenal. The move also affects ongoing assistance and programs abroad, including one, for example, to provide secret education to women in the Taliban, who are otherwise prohibited from receiving it.
Tariffs Update
Following conversations with Canadian Prime Minister Trudeau and Mexican President Sheinbaum, Trump postponed tariffs on Canada and Mexico for thirty days. Mexico agreed to send 10,000 troops to the border to combat drug trafficking, while Canada appointed a “Fentanyl Czar” at the border.
Meanwhile, Trump maintained 10% additional tariffs on China, while China retaliated with their own set of tariffs set to commence on February 10. In response, Trump plans to negotiate with Xi, though at the moment no such negotiations have occurred.
Implications: While Trump can position his agreements with Canada/Mexico as a win, experts determine that neither country gave much more than they had previously offered and/or not already implemented. The China tariffs, on the other hand, will likely have reverberating effects on the market. Issues have already arisen, after the USPS was temporarily suspended from accepting shipments. Trump lifted the suspension, allowing for shipments to arrive, as the trade war between the two countries escalates.
DEI Initiatives Cut
Following Trump’s DEI executive order to remove all DEI initiatives from federal agencies, several agencies have responded and followed suit. Certain agencies (e.g., the National Science Foundation) have removed grants that have any related terms (e.g., accessibility, inclusiveness, etc.). Others have fully revoked DEI policies. The private sector has also responded to the DEI-initiatives announcement, with Google being the latest to cut their DEI hiring efforts.
✅ Approvals and ❌ Removals
Approved
Pam Bondi - Department of Justice - The Senate voted 54-46 to approve Pam Bondi as the new Attorney General. Bondi has already started making moves, suing states for violating federal immigration policy (more below) and leading an anti-Christian bias task force.
Doug Collins - Veterans Affairs - The former House Rep, Collins was confirmed in a 77-23 bipartisan vote. Collins served in Iraq and believes that his lived experience means he understands the challenges facing veterans today.
Chris Wright - Department of Energy - In a 59-38 vote, the Senate voted to approve Wright as the new Secretary of Energy. Wright is a fossil fuel guy, believing that fossil fuel can help lift people out of poverty. He also aligns with Trump’s “drill baby drill” mentality.
Scott Turner- Department of Housing and Urban Development - Former NFL player and TX State Rep, Scott Turner was confirmed to head HUD in a 55-44 vote. Turner faces a nationwide affordable housing challenge, as well as sustained efforts to combat homelessness, though he refutes the idea that HUD needs additional funding to address these issues.
Russell Vought - Office of Management and Budget - On Thursday evening, the Senate voted to confirm Russell Vought as OMB Director in a 53-47 party-line vote. The confirmation was testy after Democrats pulled an all-nighter Wednesday evening opposing the nomination. Vought served as OMB Director during the latter part of the first Trump presidency and is one of the principal architects of the controversial document Project 2025. Trump also announced that Vought would serve as acting director of the Consumer Financial Protection Bureau.
Removed?
Hours before the deadline, a federal judge blocked the Trump/Musk “delayed resignation” offer until at least Monday. (Check out last week’s Smartt Takes for more of the offer.) The move stalls the exit of hundreds of thousands of government employees, while the judge deliberates the offer. The court plans to reconvene Monday to hear further arguments.
🗞️ Other News
Democrats - Missing in Action or Effective Protest?
After weeks of silence and supportive votes towards Trump nominees, frustrating their base, Democrats took to federal agencies this week to protest DOGE/the Trump administration’s relative agency cuts. While the federal officials were not permitted entry, members took it as an opportunity to speak out against what they believe is the executive overreach of Elon Musk.
Democrats also introduced two bills to respond to Musk’s actions:
The Eliminate Looting of Our Nation by Mitigating Unethical State Kleptocracy (ELON MUSK) Act
Among other things, the bill directs USG agencies to “terminate any contracts held by a Special Government Employee.” Lawmakers argue that the same restriction prohibiting Members of Congress or federal employees from holding contracts should apply to Musk as well.
The Taxpayer Data Protection Act
The bill restricts anyone who is not a qualified Treasury employee from accessing any sort of Treasury payment system, among other things.
Google Starts to Build Its Artillery?
In addition to removing its DEI policies, Google changed its policy to remove promises that it wouldn’t use AI for weapons development or surveillance technologies. The move follows the Trump administration’s moves to deregulate AI.
Bondi Begins
On Wednesday, the Department of Justice sued Illinois, Chicago, and Cook County for violating federal immigration policy by choosing to operate as sanctuary cities. The DOJ argues that city and state local policies are hindering federal immigration law. Chicago Mayor Brandon Johnson told NPR that the city would “stand by its policies.” Meanwhile, Illinois Governor JB Pritzker told the Trump administration he would see them in court.
👏 Whew, that was a doozy. Hopefully, it was helpful for you in keeping track of the million balls in the air. Friendly reminder that this newsletter will be available only to paid subscribers starting March 1. Make sure you’re signed up beforehand for:
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Thanks for reading, and see you next week!