Counting Down the Final Days of Fiscal ’25: Starting Line

Not Just the Fifth Row

I’m Mica Soellner, Bloomberg Government’s new White House reporter. I’ll be your go-to source at the intersection of the White House and Capitol Hill. Send me your tips at msoellner@bloombergindustry.com.

Money’s top of mind as Congress returns to town, and President Donald Trump has added a couple twists to the appropriations discussion.

He’s daring Democrats to oppose the unusual challenge of congressional spending authority they’re calling a “pocket rescission” — at the risk of taking the blame for a shutdown.

Trump also said he wants $2 billion to clean up DC. Many Hill Republicans seem to be on board, though some are quietly telling us they want to see where the money would be spent first. Significantly, Democratic Mayor Muriel Bowser is backing the president’s efforts for now.

We’re following that, plus the next steps in his federal takeover of the city and a proposed crime bill.

Confirming Trump’s nominees is another priority for both the Senate and the White House. We’ll be tracking the progress and any resistance.

And if you watch the briefings, look for me in the fifth row most days.

Final Fiscal Month

It’s always interesting to watch how the government spends money in September. If this year is typical, there will be a trickle followed by a gusher.

BGOV analyst Maika Ito reviewed the day-by-day spending from past cycles and documented a clear trend as the fiscal year’s time gets short. Almost half of fourth-quarter procurement tends to get cashed out in September, backloaded toward the end of the month.

See for yourself how it went last year:

How Well Do You Know Washington — Turn Back the Clock Edition

This week’s quiz is inspired by the president’s interest in reviving a name that was retired as the US transitioned from World War II to the Cold War. “It used to be called the Department of War, and it had a stronger sound,” Trump said. “We want defense, but we want offense, too.”

When was the first secretary of defense installed, and how old is the name Department of Defense?

A) 1945
B) 1947
C) 1949
D) 1951

Scroll down for the answer.

Six Months and Change

March may seem a long way off but in campaign time, that’s right around the corner — especially for the congressional incumbents who suddenly need to introduce themselves to a new set of voters.

As you know, Trump is so worried about losing House seats in 2026 that, at his urging, Texas revised districts to tilt the state more strongly in the Republican Party’s favor. He’s also been pondering how to generate enthusiasm and turnout.

“I am thinking of recommending a National Convention to the Republican Party, just prior to the Midterms. It has never been done before. STAY TUNED!!” Trump wrote on social media.

We’ll be watching for whether that idea takes off. Meantime, another state is now headed toward following Texas and California into we-want-to-redistrict territory. (There are also we-have-to-remap states: Utah because of a court case and Ohio because of state law.)

Missouri Gov. Mike Kehoe (R) has summoned the state legislature to a special session beginning Wednesday. Its purpose: redraw the state’s congressional districts to give Republicans dominance over one more seat. Andrew Oxford reports that Kehoe’s proposal would aid the GOP by splitting the Kansas City area district represented by Rep. Emanuel Cleaver (D). Read More

Some highlights from our recess-month campaign coverage:

• A Look at the Democrats’ Summer Recruits
• Ernst Expected Not to Seek Reelection to Senate
• Senators Use Recess to Raise Profile, Test 2026 Message
• California Tees Up Special Election on US House Map
• Republicans Struggle to Sell Agenda During Summer of Discontent
• Ex-MLB Star Mark Teixeira Launches Bid for Texas Congress Seat

Eye on Tariffs

We’ll be watching for a possible appeal to the Supreme Court after a federal appeals court ruled that Trump imposed tariffs illegally under a law put in place for emergencies.

The administration’s allowed to keep collecting the money while the case proceeds, so there may not be a lot of incentive to move fast. The administration could decide to just let the Court of International Trade revisit the matter.

“Our trading partners must be dazed and confused,” Wendy Cutler, a senior vice president at the Asia Society Policy Institute and veteran US trade negotiator, wrote in a post on LinkedIn. “Many of them entered into framework deals with us and some are still negotiating.” Read More

Farm Impact

Tariff tensions are making the market for North America’s agricultural products the most uncertain in the world, as harvest time approaches with no Chinese promises to buy US soybeans and predictions of a record corn crop mean that supply will be high and prices low.

Credit conditions for farmers “deteriorated steadily” in the second quarter, according to a Federal Reserve Bank of Kansas City report. Bankruptcies are also on the rise. Read More

On top of that, the big equipment maker Caterpiller told investors that the impact of tariffs on its business is shaping up to top $1.5 billion for the year. Read More

Did You Ace the Quiz?

You had two chances to be right because the secretary came first.

Option B — 1947 is correct because that’s when President Harry Truman signed the law creating a civilian secretary of defense as well as the CIA, NSA, and National Security Resources Board. The secretary was put in charge of a new arm of the government that combined the War Department and Navy Department into the National Military Establishment.

Also give yourself a star if you chose Option B — 1949. That’s when the National Military Establishment was renamed the Department of Defense.

Military history professor emeritus Richard H. Kohn told the New York Times the rebranding reflected both a nuclear-age emphasis on avoiding war and an enlarged list of duties that included war fighting, foreign policy, intelligence and national security.

Bonus answer: In case you’re curious about what the bureaucracy was called from the days of muskets through tanks and nukes, Congress established the War Department in 1789, roughly six years after the end of the Revolutionary War. The Navy Department was created in 1798.

Before You Go

Some weekend developments:

Giuliani Injured: Former New York Mayor Rudolph Giuliani has been hospitalized for injuries suffered in a car crash in New Hampshire. A spokesperson said Giuliani’s car was struck from behind at high speed. Injuries include a fractured thoracic vertebrae. Read More

Unwelcome Sign: Chicago Mayor Brandon Johnson signed an executive order aimed at banning federal law-enforcement officers from wearing masks or disguises as he tries to head off Trump’s threat to expand his crime crackdown to the city. Read More

Plus a few deep dives and explainers that are worth a read:

Solo Act: For the past few days, the National Labor Relations Board has had a membership of just one. Robert Iafolla walks through the status of the board and Trump’s nominations.

Trolling Is Hard to Ignore: As UCLA tries to follow other schools in reaching a deal with the White House to restore federal funding, it faces a unique complication: Gov. Gavin Newsom’s aggressive pushback against the Trump administration. Read More

USDA Shuffle: The Trump administration’s plan to uproot Agriculture Department employees and spread them across the US has the potential to impact food safety, welfare programs, and farmers themselves, Skye Witley reports. Read More

Bonus Video

On his first day in office, Trump signed an executive order to change the name of the Gulf of Mexico to the Gulf of America—but who’s required to call it that?

This Bloomberg Law video explores the legal processes behind geographical name changes. Watch Here

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