Inflation increased in January, posing obstacle for Trump tariff plans

Inflation increased in January, posing obstacle for Trump tariff plans
Inflation increased in January, posing obstacle for Trump tariff plans
Frederic J. Brown/AFP via Getty Images

(NEW YORK) — Consumer prices rose 3% in January compared to a year ago, ticking up from the previous month and posing an obstacle for Trump administration tariff policies that many economists expect to raise some prices, government data on Wednesday showed. The inflation reading came in higher than economists had predicted.

The fresh data extends a bout of resurgent inflation that stretches back to last year. Two weeks ago, the Federal Reserve opted to hold interest rates steady in part out of concern regarding the stubborn price increases.

Egg prices, a closely watched symbol of rising costs, soared 53% in January compared to a year ago. An avian flu has decimated the egg supply, lifting prices higher.

Beef prices climbed 5% and bacon prices jumped 6% in January compared to a year ago, data showed. By contrast, prices dropped over that same period for bread, rice and tomatoes.

Core inflation — a measure that strips out volatile food and energy prices — increased 3.3% over the year ending in December, ticking lower than the previous month, the data showed. That gauge also sped up from the previous month.

Inflation has slowed dramatically from a peak in June 2022, but price increases remain a percentage point higher than the Fed’s target rate.

Since Trump took office on Jan. 20, he has announced a series of tariffs, which economists say could push prices higher. Tariffs on steel and aluminum announced by Trump this week could raise prices for a set of products that includes refrigerators, beer and automobiles, experts previously told ABC News.

In a post on Truth Social on Wednesday morning, Trump appeared to fault former President Joe Biden for the uptick in inflation, writing: “BIDEN INFLATION UP!”

Biden served during more than half of the month of January, leaving office on Jan. 20. Trump, however, said during the presidential campaign earlier this year that he would bring down prices “starting on day one.”

This is a developing story. Please check back for updates.
 

Copyright © 2025, ABC Audio. All rights reserved.

Palestinians hope to return to Gaza, West Bank, while some Israelis want annexation

Palestinians hope to return to Gaza, West Bank, while some Israelis want annexation
Palestinians hope to return to Gaza, West Bank, while some Israelis want annexation
Mohammad Mansour/AFP via Getty Images

(LONDON) — Israel has occupied the Gaza Strip and West Bank since its victory in the Six-Day War in 1967. Palestinians hope that one day both territories will become part of a nation-state they can call their own.

But that dream seems further away than ever following Hamas’ attack on Oct. 7, 2023, and Israel’s bombardment of Gaza in response — which has left the strip destroyed.

The far-right factions in Israel are now advocating for the annexation of the West Bank once and for all.

“We left only with our lives, with our safety,” Palestinian Sana Al Zubeidi told ABC News, after being forced to flee her home with her family amid some of the most intense IDF raids there in decades. “We didn’t take anything with us because it was at that moment and we were leaving and that airplanes in the skies were shooting at us.”

Just days ago, the Al Zubeidi family, comprised of a grandfather, grandmother, and 10 grandchildren, was forced to flee their town of Jenin in the occupied West Bank. Jenin is known as a militant stronghold, a place that has witnessed little to no peace.

Streams of people are fleeing the Jenin refugee camp where they have lived since their displacement in Israel’s founding in 1948. According to the local mayor, 16,000 people have left since the IDF launched “operation iron wall” weeks ago, with the aim to root out terrorism in the West Bank.

Israeli Minister of Defense Israel Katz stated, “The Jenin refugee camp will not return to its previous condition. After the operation is complete, IDF forces will remain in the camp to ensure that terrorism does not return.” There have been many battles in Jenin, and the families are determined to return to their homes one day.

Meanwhile, many displaced families have sought refuge in Burqin Village. The faces of slain Palestinian fighters throughout the years are visible here. In Israel, they are labeled as terrorists; here, they are viewed as resistance fighters and revered as “martyrs.”

Even Hamas leader Yahya Sinwar, who orchestrated the attacks on Oct. 7, was displayed prominently in the town square. The IDF claims that “Operation Iron Wall” is different, stating that they are targeting the core of terrorism in the West Bank.

Bulldozers are tearing up the streets, while airstrikes and controlled demolitions are destroying many houses, resulting in a devastating scene.

Roads have been destroyed, restricting movement and cutting off communities from one another across the northern West Bank. Palestinians are routinely stopped and searched.

At least 40,000 Palestinians are impacted by forced displacement due to ongoing Israeli Forces operation in the north.

This war is disrupting almost every aspect of daily life, and there seems to be no end in sight. Jamal Al-Zubaidi has lost two sons in the fighting, another son is injured, and a fourth is in jail.

“I want to tell you something very clear: We are part of the resistance to an illegitimate occupation,” Jamal Al-Zubaidi said. “The military occupation is the biggest terror. The only terrorists are the occupation and the Israeli Army that kill us, that displaced us, that took our land in 1948, that is preventing us from achieving our rights and our self-determination.”

In a statement to ABC News, the IDF reported that they had thwarted 2,000 attempted terrorist attacks since Oct. 7. They described the West Bank as having a “complex security reality” where they are dealing daily with terrorism and violent disturbances.

The statement goes on to assert that the IDF “follows international law” and claims that “terrorist operatives” have exploited civilian infrastructure.

As the raids expand, tragedy unfolds — mourners gather at the funeral of a 2-year-old child, Laila Al-Khatib, who was reportedly killed by gunfire during an Israeli raid on Jenin, according to Palestinian officials.

Security footage from Tulkarm captures the moment the IDF shot 10-year-old Sadam Hussein Rajab on Jan. 28. He was left in critical condition and died just over a week later.

The IDF has confirmed that they know both incidents and have initiated investigations. Israel asserts that this is just the beginning.

“You pay a heavy price for freedom,” Jamal Al-Zubaidi said. “And nothing comes without a price. And we are going to, and we are willing to, pay the price for our rights.”
 

Copyright © 2025, ABC Audio. All rights reserved.

Another storm hitting Midwest, East Coast as Mid-Atlantic digs out from major snowfall

Another storm hitting Midwest, East Coast as Mid-Atlantic digs out from major snowfall
Another storm hitting Midwest, East Coast as Mid-Atlantic digs out from major snowfall
ABC News Illustration

(NEW YORK) — As the Mid-Atlantic digs out from a significant snowstorm, a new winter storm is underway in the Plains that will move through the Midwest before reaching the East Coast.

On Wednesday morning, the second storm is hitting Kansas City, Missouri, and Des Moines, Iowa.

The storm will reach Chicago later in the morning, dropping 4 to 6 inches of snow.

An ice storm warning has been issued for Toledo, Ohio, where ice accumulation could cause power outages.

The storm will move into the Northeast on Wednesday evening, bringing mostly rain to the Interstate 95 corridor and an icy mix to New England and upstate New York.

On the southern end of the storm, heavy rain could bring flash flooding from Louisiana to North Carolina.

Strong tornadoes are possible in Louisiana, Mississippi and Alabama.

This comes after another snowstorm walloped the Mid-Atlantic on Tuesday.

Virginia recorded more than 14 inches of snow and West Virginia recorded 13 inches. Trees are toppling in Virginia due to the coating of snow and ice and over 170,000 customers in the state are without power on Wednesday morning.

Public schools are closed on Wednesday in Washington, D.C., where there’s more than 6 inches of snow on the ground.

Philadelphia saw 2.6 inches of snow and New York City saw 1.4 inches.

Copyright © 2025, ABC Audio. All rights reserved.

What will dismantling the Education Department mean for your student loans?

What will dismantling the Education Department mean for your student loans?
What will dismantling the Education Department mean for your student loans?
Kayla Bartkowski/Getty Images

(WASHINGTON) — The Trump administration is gearing up for major changes to the Department of Education, which, among its other functions, oversees a $1.6 trillion portfolio of student loans — the third largest source of household debt in the U.S.

Those loans belong to over 44 million Americans, many of whom are wondering what it would mean to abolish the department that manages their debt.

It depends on which policies the Trump administration actually implements — and which survive legal challenges. But some of the policy plans that have been floated include moving the government’s student loan portfolio over to the Treasury Department, changing the repayment plans that are available to borrowers and, in the most extreme possible change, privatizing the entire student loan system.

Above all, borrowers should expect a halt to student debt relief programs implemented and expanded under former President Joe Biden. The former president’s efforts resulted in $188.8 billion in student loan forgiveness for 5.3 million borrowers during his presidency. Republicans have derided the efforts as an abuse of executive authority, and some have even argued for clawbacks of some of that relief — though that’s considered unlikely.

The relief was concentrated in expansions or fixes to forgiveness programs that already existed, like Public Service Loan Forgiveness and income-driven repayment plans, after efforts at wide scale debt relief were halted by Republican-led lawsuits.

Moving the student loan system to a new home
Conservatives who advocate for the Department of Education to be dismantled often suggest moving the Office of Federal Student Aid (FSA) to the Treasury Department, where it would continue to carry out the regular duties of doling out federal loans and recouping them.

FSA, which is an office within the Department of Education, is where people apply for federal student loans, grants and work-study funds, using the Free Application for Student Aid, or FAFSA, and it’s also the office that manages the repayment process.

Some legal experts have posited that moving FSA into a different government agency would require congressional approval. But Trump could continue pushing the limits of executive authority, as he has with other agencies, to test that hypothesis, ultimately leaving it up to the courts to decide.

Rick Hess, a senior fellow and director focused on education policy at the right-leaning American Enterprise Institute, says FSA would be a better fit for the Treasury Department because it’s “essentially a mega-bank.”

“It’d make more sense to have it overseen by officials at Treasury who work closely with financial institutions and oversee federal revenue collection,” Hess wrote in a recent post.

Hess, in an interview with ABC News, said that he doesn’t predict any impact on student loan borrowers if FSA moved homes — the process would carry on, he said.

“I would be surprised if it’s noticeable in any way compared to anything the borrowers have experienced in the last 4 years,” Hess said, referring to the tumultuousness of the moratorium on payments during the pandemic, the restart, and then the stop-and-start that resulted from lawsuits over Biden’s forgiveness efforts.

That optimistic view would be a deviation from the learned experience of most borrowers, Persis Yu, deputy executive director and managing counsel of the Student Borrower Protection Center, which advocates for debt relief, said.

“No transitions in the student loan system have ever gone well, historically, and we have never tried to move the entire portfolio,” Yu said.

The student loan system is “messy” in its current state, Yu said.
Millions of borrowers still haven’t started repaying their loans since the Covid-era pause ended, and a lawsuit holding up a Biden-era student loan repayment plan, called SAVE, has put nearly 8 million borrowers in forbearance while they await further guidance.

“Having a huge shift is certainly not going to make things better,” she said.

Yu also raised concerns that the Department of Education oversees the loan system with an emphasis on borrower rights, adhering to the Higher Education Act of 1965, while the Treasury Department would do so as a debt collector, which she said could create a “philosophical” difference in how borrowers will be treated.

“I am not here to defend [the Department of Education’s] track record because we’ve obviously had a lot of critiques of their performance in the past,” Yu said. “But this is a move that will in fact hand the portfolio to people even less qualified to run it.”

Changing the ways borrowers repay their loans
There is also a subset of the Republican Party that wants much more significant changes to the student loan system beyond just rehoming offices to make the overall department smaller.

Project 2025, the conservative blueprint of policy ideas written for the Trump administration, calls for privatizing the student loan system entirely and moving all of the government-owned loans to private loan servicers.

Doing so would be a significant change in the way higher education is funded — more than 92% of people relied on federal loans in 2024, rather than private loans, according to the Education Data Initiative, and offloading the $1.6 trillion in federal student loans the government already has — or ceasing to offer loans going forward — would require congressional approval. (Project 2025 acknowledges that privatizing the system may not be “feasible.”)

It also calls for all federal loan repayment plans, of which there are many options, to be consolidated into just one option, and for an end to Public Service Loan Forgiveness, or PSLF, which grants relief to people who work in public service, like nurses and firefighters, after they’ve paid their loans for 10 years.

But the program, first introduced by Republican President George W. Bush in 2007, was authorized by Congress, and would have to be eliminated by Congress, too, which remains unlikely.

Trump could significantly reduce access to the program, though, returning it to its less-effective form during his first term.

The forgiveness plan was massively expanded under Biden, but at one point in Trump’s first term, the Education Department rejected 99% of PSLF applications, a report from the Government Accountability Office found.

When Biden was in office, the number of people who had qualified for PSLF throughout the program’s history rose from 7,000 to over 1 million.

Copyright © 2025, ABC Audio. All rights reserved.

Full Ukrainian liberation from Russia ‘unrealistic,’ Hegseth tells allies

Full Ukrainian liberation from Russia ‘unrealistic,’ Hegseth tells allies
Full Ukrainian liberation from Russia ‘unrealistic,’ Hegseth tells allies
Chip Somodevilla/Getty Images

(LONDON and THE PENTAGON) — Defense Secretary Pete Hegseth appeared at his first meeting of the Ukraine Defense Contact Group on Wednesday to tell allies that the liberation of all Russian-occupied Ukrainian territory “is an unrealistic objective.”

“The bloodshed must stop and this war must end,” Hegseth said, in one of the most detailed delineations of the Ukraine-Russia peace deal envisioned by President Donald Trump’s new administration.

“President Trump has been clear with the American people — and with many of your leaders — that stopping the fighting and reaching an enduring peace is a top priority,” Hegseth said at the meeting, which was led by the U.K., marking the first time the group has not convened under U.S. leadership.

“He intends to end this war by diplomacy and bringing both Russia and Ukraine to the table,” Hegseth said. “We will only end this devastating war and establish a durable peace by coupling allied strength with a realistic assessment of the battlefield.”

President Volodymyr Zelenskyy and his government in Kyiv have demanded full territorial liberation — whether by military or diplomatic means — per the country’s internationally-recognized 1991 borders. Among Ukraine’s other demands are binding Western security guarantees, ideally in the form of full NATO membership and Article Five protection.

Hegseth rejected such ambitions, at least in the near term.

“We want, like you, a sovereign and prosperous Ukraine, but we must start by recognizing that returning to Ukraine’s pre-2014 borders is an unrealistic objective,” he told allies. “Chasing this illusionary goal will only prolong the war and cause more suffering.”

“The United States does not believe that NATO membership for Ukraine is a realistic outcome of a negotiated settlement,” Hegseth continued. “Instead, any security guarantee must be backed by capable European and non-European troops.”

“If these troops are deployed as peacekeepers to Ukraine at any point, they should be deployed as part of a non-NATO mission and they should not be covered under Article Five,” he added. “There also must be robust international oversight of the line of contact.”

“To be clear, as part of any security guarantee, there will not be U.S. troops deployed to Ukraine,” Hegseth said.

Trump has repeatedly vowed to end the war by forcing both Moscow and Kyiv back to the negotiating table after nearly three years of full-scale war.

Hegseth suggested that Trump’s domestic energy policies would help pressure the Kremlin. “Lower energy prices coupled with more effective enforcement of energy sanctions will help bring Russia to the table,” he said.

Hegseth delivered a broader warning to European allies of a lighter U.S. footprint on the continent. They, he said, will need to “provide the overwhelming share of future lethal and non-lethal aid to Ukraine.”

He said the “stark strategic realities” of competition with China in the Indo-Pacific and the U.S. focus on securing its domestic borders “prevent the United States of America from being primarily focused on the security of Europe.”

Hegseth called on allies to donate more ammunition and equipment to Ukraine, expand their industrial bases and explain to citizens that the Russian threat necessitates “spending more on defense and investing strategically.”
That will include increasing defense spending beyond the 2% of GDP target agreed by allies in 2014. The threshold — which many NATO allies have still not achieved — “is not enough,” Hegseth said.

“President Trump has called for 5% and I agree,” he added. “Increasing your commitment to your own security is a down payment for the future.”

The defense secretary warned that while the U.S. “remains committed to the NATO alliance and to partnership with Europe,” America “will no longer tolerate an imbalanced relationship which encourages dependency.”

“Rather, our relationship will prioritize empowering Europe to own responsibility for its own security,” he added. “Honesty will be our policy going forward.”

In response to Hegseth’s remarks, British Defense Secretary John Healey said, “We hear you.”

“We hear your commitment to NATO, to Article Five, to a sovereign Ukraine and to your defense partnership with Europe,” Healey said. “We also hear your concerns.”

“On stepping up for Ukraine, we are and we will,” Healey continued. “On stepping up for European security, we are and we will.”

“You’ve just spoken about peace through strength,” Healey said. “We are 50 nations strong here, all determined to put an end to [Russian President Vladimir] Putin’s war, to do so together.”

Copyright © 2025, ABC Audio. All rights reserved.

Rat birth control and ‘Rat Walks’ among new initiatives to curb NYC’s rat population

Rat birth control and ‘Rat Walks’ among new initiatives to curb NYC’s rat population
Rat birth control and ‘Rat Walks’ among new initiatives to curb NYC’s rat population
ABC

(NEW YORK) — New York City is known for its towering skyscrapers and bustling streets, but lurking beneath the glitz and glamour of the city that never sleeps are 3 million resilient rats that have cemented their place as native New Yorkers.

According to Orkin, the pest control service, New York has been ranked as the third rattiest city in the country behind Los Angeles and Chicago. Now local officials are taking up the battle against the city’s furry rodents.

In 2023, New York City Mayor Eric Adams announced the city’s first Rat Czar, drawing national attention. Since then, many citywide initiatives have been explored.

Director of Rodent Mitigation Kathleen Corradi, aka the Rat Czar, is taking on the task of educating fellow New Yorkers with a new program called Rat Walks. It’s a program available in all boroughs where attendees learn everything about rats, their habits, and what human behaviors encourage the rodents to stick around.

In October, Corradi told participants attending a rat walk, “We’re doing a lot in this administration to make sure we’re containerizing, make sure we’re changing behaviors around waste management.”

Given a $3.5 million budget, Corradi is tasked with reducing the city’s rat population. Still, she says it’s up to New Yorkers, too, “The only way we are successful is getting an educated public change in behaviors and addressing those conditions that support rats. Extermination will always be a part of the conversation, but we know the long-term success relies on front-end equation, and that’s where we’re really focusing and empowering New Yorkers,” she told ABC News.

Several New Yorkers living in rat mitigation zones spoke to ABC News about seeing rats in their neighborhood. “The rats were all over the place, like just ‘Ratatouille,'” Shea Sullivan, a NYC resident, told ABC News. Samir, a superintendent, told us the situation in some of his apartment buildings was getting so out of hand that he had to drown rats himself, “I drowned them in water and killed them. This is ridiculous. It has to be changed completely.”

As New Yorkers are dealing with rats in their homes or neighborhoods, others are taking a different approach to tackling the issue.
New York City Council Member Shaun Abreu launched Bill 736, or “Flaco’s law.” The bill passed on Sept. 26, 2024, and will implement rat contraceptives in areas where trash is containerized. He told ABC News that rat birth control can help curb rat populations, but only if trash is fully contained so the rodents don’t have anything else to eat.

Two years ago, his office also introduced Rat Mitigation Zones, securing $11.5 million to fund the initiative.

“Through my legislation two years ago, the city established five rat mitigation zones, and in these rat mitigation zones citywide rat sightings have gone down by 14%, at least, based off of 311 complaints,” Abreu told ABC News.
In 2024, his office also introduced a residential pilot program to containerize trash in Harlem, an area largely infested with rats. “You have these giant bins out on the street and since we’ve implemented that last September, trash is now in containers. Now they’re not out for a rat buffet anymore. 311 complaints for rat sightings have gone down by 55%. No other intervention has been done this past year,” he told ABC News.

With the passing of Bill 736, rat contraceptives are expected to be rolled out on New York City streets by April 26, 2025.
The company WISDOM Good Works is expected to partner with the city to manage and maintain the distribution of rat birth control. “We’ve been working with City Council offices as well as city agencies that will be enforcing the bill,” the director of operations at WISDOM Good Works, Alaina Gonzalez-White, told ABC News.

She says that the birth control pellets are safer for all wildlife, not just rats. “It’s formulated to target the reproductive system of an animal the size of a rat. Anything that eats that rat will no longer be eating a poisoned meal.” PETA supports the initiative.

Ashley Byrne, senior campaigner for PETA, told us the end of rat poison, known as rodenticide, would mean saving the lives of pets that may come in contact with rats. “Ultimately, slaughtering rats doesn’t work. The only long-term and humane solution is prevention. No animal deserves to experience the slow suffering and miserable death that results from ingesting rat poison.”

Abreu shared his mission to combat rat populations more humanely, saying, “My goal personally is not for rats to go extinct. Our goal is (to) coexist in a way where rats aren’t showing up. I think our message is very much in line with the PETA message. We believe in New York City, we should throw everything we can at the problem from shutting off the food supply, but also targeting rat reproduction at the source.”
 

Copyright © 2025, ABC Audio. All rights reserved.

Russian held in US to be freed in exchange for Fogel release, Kremlin says

Russian held in US to be freed in exchange for Fogel release, Kremlin says
Russian held in US to be freed in exchange for Fogel release, Kremlin says
Aaron Schwartz/CNP/Bloomberg via Getty Images

(LONDON) — A Russian citizen held in a U.S. prison will be repatriated to Russia following the release of U.S. citizen Marc Fogel, who was returned to the United States on Tuesday, Moscow said.

“In exchange for Fogel, a Russian citizen imprisoned in the United States will be returned to Russia in the coming days,” Dmitry Peskov, a Kremlin spokesperson, said on Wednesday.

Peskov did not disclose which Russian citizen held in a U.S. jail would be repatriated, but said the United States had agreed to the release during negotiations for the return of Fogel, who had been detained in Russia since 2021.

President Donald Trump didn’t disclose on Tuesday the negotiations that led to Fogel’s release or say whether there had been any conversations with Russian President Vladimir Putin.

“I can only say this: We got a man home whose mother and family wanted him desperately,” Trump said.

Mike Waltz, the White House national security adviser, said in a statement on Tuesday that Washington had “negotiated an exchange that serves as a show of good faith from the Russians and a sign we are moving in the right direction to end the brutal and terrible war in Ukraine.” His statement did not include details on the exchange.

Trump earlier on Tuesday had been asked if Russia had given the United States anything in return.

“Not much, no,” Trump said. “They were very nice. We were treated very nicely by Russia, actually.”
Peskov on Wednesday declined to say whether additional prisoner exchanges were expected in the future, but said that “contacts between the relevant departments have intensified in the last few days.”

Then-Secretary of State Antony Blinken said in October 2024 that Fogel, an American teacher, had been “wrongfully detained,” the State Department confirmed to ABC News.

The U.S. tried but was unable to include Fogel in the large prisoner swap in August 2024 that freed Wall Street Journal reporter Evan Gershkovich and former U.S. Marine Paul Whelan, a State Department spokesperson said last year.

ABC News’ Joe Simonetti, Michelle Stoddart, Nathan Luna and Meredith Deliso contributed to this report.

Copyright © 2025, ABC Audio. All rights reserved.

Democrats vow to fight shutdown of consumer watchdog agency

Democrats vow to fight shutdown of consumer watchdog agency
Democrats vow to fight shutdown of consumer watchdog agency
Saul Loeb/AFP via Getty Images

(WASHINGTON) — A group of 191 House and Senate Democrats sent a letter to Russell Vought, the newly installed director of the Office of Management and Budget, and Treasury Secretary Scott Bessent, calling on them to reverse course on actions targeting the nation’s consumer financial watchdog agency.

The Consumer Financial Protection Bureau (CFPB) was created by Congress in the wake of the 2008 financial crisis to safeguard Americans against unfair business practices. It has been brought to a virtual standstill after Vought, who last week was named the agency’s acting director, and Elon Musk’s Department of Government Efficiency took control of the agency. Vought has since issued a stop-work order to nearly all CFPB staff.

Democrats, in their letter, are calling for Musk’s DOGE employees, some of whom physically accessed the agency’s federal office and requested access to its industry and consumer data, to be pulled out of the CFPB.

“Your efforts to dismantle the CFPB are dangerous, and we will fight them at every turn. We ask that you remove Mr. Musk’s operatives from the CFPB, restore all internal and external systems and operations, and allow the CFPB to continue to do its job of protecting American consumers,” the Democrats wrote in their letter.

The letter is signed by all Senate Democrats and the two independents — Sen. Angus King, of Maine, and Sen. Bernie Sanders, of Vermont — who caucus with them.

During remarks on Monday from the Oval Office, President Donald Trump said the CFPB was “very important to get rid of” and that the organization was “set up to destroy some very good people.”

When asked if his goal was to completely get rid of the agency, Trump answered in the affirmative.

“I would say yeah, because we’re trying to get rid of waste, fraud and abuse,” Trump said.

Democrats in their letter allege that efforts to sideline the financial watchdog will harm consumers and are potentially illegal.

“The Trump Administration has effectively fired the financial cop on the beat and declared open season for predatory lenders and scam artists working to steal Americans’ money and threaten their financial security,” Democrats said in the letter.

“No matter how badly someone has been cheated and no matter how extensive the scam, the Administration has declared that the financial cops should simply stand by and watch while giant networks of lenders cheat American consumers,” the letter continued. “This is particularly costly for people whose claims of illegal foreclosures, car repossessions, or debanking are currently under investigation by the agency.”

The letter comes as congressional Democrats, who are in the minority in both the House and the Senate, have vowed to use their limited tools to challenge what they say is illegal overreach by the Trump administration and Musk’s Department of Government Efficiency across a number of agencies, including USAID, the Federal Emergency Management Agency, the National Institutes of Health and the CFPB.

The National Treasury Employees Union filed two lawsuits this week against Vought, challenging both the takeover of the CFPB and DOGE’s access to its records.

The letter is led by Sen. Elizabeth Warren, of Massachusetts, who is the top Democrat on the Senate Banking Committee and helped create the CFPB after the 2008 financial crash. In the days since Elon Musk posted “RIP CFPB” on X, Warren has been a vocal defender of the agency.

Since it was established in 2011, the CFPB says it has clawed back nearly $21 billion for American consumers, addressing complaints over everything from bank fees to credit cards to student loans.

On Tuesday, Warren implored Federal Reserve Chairman Jerome Powell, who was appearing before the Senate Banking Committee, to work with Congress to keep Musk’s team out of the Consumer Financial Protection Bureau.

“If the CFPB is not there examining these giant banks to make sure they are following the laws, are not cheating consumers, who is doing that job?” Warren asked Powell during the hearing.

“I can say no other federal regulators,” Powell replied.

“No one. In other words thanks to ‘co-president’ Musk and the CFPB Acting Director Vought, Wall Street banks no longer have to show the bank examiners that they’re not illegally opening accounts people didn’t ask for, like what happened with Wells Fargo, or charging illegal junk fees like Bank of America did,” Warren said.

But some Republicans on the panel pushed back on this line of questioning, saying laws that regulate banks haven’t changed and Elon Musk is simply carrying out the work Trump promised on the campaign.

“There’s been a lot of conversation, both in and out of this hearing room today, conversations about a co-president, referencing Elon Musk, referencing the work that DOGE is doing,” said Alabama Republican Sen. Katie Britt. “I think it’s important to remember that President Trump ran on this. I mean, he said we’re going to look for wasteful spending across our government.”

Democrats, in their letter, say they’ll fight to defend the agency.

“We beat back all prior efforts to gut this agency, and we will fight this latest attack in Congress, the courts, and the public,” the lawmakers wrote. “It will fail.”

Copyright © 2025, ABC Audio. All rights reserved.

Putin ‘not preparing for peace,’ Zelenskyy says after deadly ballistic missile strike

Putin ‘not preparing for peace,’ Zelenskyy says after deadly ballistic missile strike
Putin ‘not preparing for peace,’ Zelenskyy says after deadly ballistic missile strike
Viktor Kovalchuk/Global Images Ukraine via Getty Images

(LONDON) — President Volodymyr Zelenskyy of Ukraine called on Western partners to apply more pressure to Russia after an overnight ballistic missile and drone strike killed at least one person and set multiple fires in the capital Kyiv.

“Apartment buildings, office buildings and civilian infrastructure were damaged,” Zelenskyy wrote on Telegram. “All our services are working on the ground, helping people and eliminating the consequences of this terror.”

“Unfortunately, as of now, one person has died in Kyiv,” he added. “Four more were injured, including a child. My condolences to the family and friends.”

Ukraine’s air force reported downing six out of seven ballistic missiles fired at Kyiv and the central city of Kryvyi Rih — Zelenskyy’s home town. The air force said Russia also launched 123 strike drones into Ukraine, of which 71 were shot down and 40 were lost in flight.

Viacheslav Chaus, the governor of Ukraine’s Chernihiv Oblast, said two people were injured in a Russian drone strike on a critical infrastructure facility. Serhiy Lysak, the governor of the Dnipropetrovsk Regional Military Administration, said the missile attack on Kryvyi Rih damaged infrastructure, high-rise residential, administrative and educational buildings.

Zelenskyy called on Western partners to apply greater pressure on Russian President Vladimir Putin in response to the latest round of strikes, which came as both sides maneuver for an expected revival in peace talks after almost three years of full-scale war.

“This Russian terror against Ukraine will not stop on its own,” Zelenskyy wrote. “Putin is not preparing for peace — he continues to kill Ukrainians and destroy cities.”

“Only strong steps and pressure on Russia can stop this terror,” the Ukrainian leader said. “Right now, we need unity and support from all our partners in the fight for a just end to this war.”

The latest barrage came only hours after Steve Witkoff — President Donald Trump’s Middle East envoy — flew to Moscow to facilitate the release of jailed American Mark Fogel. Fogel, 63, had been serving a 14-year prison sentence in a Russian prison colony after being arrested in 2021 on drug charges.

Trump later told reporters he thought Fogel’s return could advance negotiations to end Russia’s war on Ukraine. “I want to get the war ended,” Trump said.

Moscow has continued nightly drone and missile attacks ahead of potentially pivotal meetings between U.S. and Ukrainian officials this week.

Trump’s Russia-Ukraine envoy Keith Kellogg is due in Ukraine this week, while Vice President JD Vance is set to travel to the Munich Security Conference next weekend where Zelenskyy will lead Ukraine’s delegation.

Andriy Kovalenko, the head of the Counter-Disinformation Center operating as part of Ukraine’s National Security and Defense Council, said on Telegram that “every public statement by the West about ‘progress’ in the movement towards peace is accompanied by missile strikes by the Russian Federation.”

Kovalenko suggested Putin would continue to employ such tactics through 2025. “These are methods of diplomacy that are closely intertwined with the front,” he wrote.

Ukraine is also continuing its long-range strike campaign into Russia. The Defense Ministry in Moscow said on Telegram on Wednesday that it downed seven Ukrainian drones over the western Belgorod and Kursk regions during the previous 24 hours.

ABC News’ Joe Simonetti and Max Uzol contributed to this report.

Copyright © 2025, ABC Audio. All rights reserved.

As Trump pushes whirlwind agenda, DOJ is challenged to defend his orders in court

As Trump pushes whirlwind agenda, DOJ is challenged to defend his orders in court
As Trump pushes whirlwind agenda, DOJ is challenged to defend his orders in court
Photo by JIM WATSON/AFP via Getty Images

(WASHINGTON) — Three weeks into Donald Trump’s breakneck effort to remake the federal government, the rapid pace of lawsuits pushing back against his orders — and a number of legal setbacks for the Trump administration — have challenged the Department of Justice, seemingly overwhelming the government lawyers tasked with defending the president in court.

In a court filing Monday night, Justice Department lawyers acknowledged making two significant errors last week during a court hearing about the dismantling of the foreign aid agency USAID. While DOJ attorneys last week claimed that 500 employees at USAID had been put on leave and that only future contracts had been put on pause, more than 2,100 employees had actually been placed on leave while both future and existing contracts were frozen, according to the filing.

“Defendants sincerely regret these inadvertent misstatements based on information provided to counsel immediately prior to the hearing and have made every effort to provide reliable information in the declaration supporting their opposition to a preliminary injunction,” DOJ lawyers wrote to the judge overseeing the case.

During the USAID hearing last week, Judge Carl Nichols, a Trump appointee, expressed frustration that the government had not provided him sufficient information.

“I need to know what the government’s official position is right now. What is happening?” Nichols said. “Is the government paying people or not?”

The Trump administration has faced a torrent of lawsuits over the last two weeks, with judges over the last two days blocking them from enforcing a federal buyout program, cutting funding for health research, and removing public health data from government websites.

After a New York judge blocked Trump’s new Department of Government Efficiency from accessing Treasury Department records on Saturday, both DOGE head Elon Musk and Vice President JD Vance began to publicly float the idea of defying the court orders.

Justice Department representatives did not respond to a request for comment from ABC News.

During a hearing in the Treasury Department case, the DOJ claimed that Marko Elez — a SpaceX employee-turned-DOGE cost-cutter who briefly resigned last week after the Wall Street Journal reported on racist social media posts — was a “special government employee” within the Department of the Treasury.

In a filing Monday, the DOJ corrected themselves to note that Elez was actually a full-fledged Treasury Department employee — a “Special Advisor for Information Technology and Modernization” according to the filing — who is subject to additional ethics requirements.

During a hearing last week on whether the DOJ should be blocked from disseminating a list of federal agents and employees who worked on cases involving the Jan. 6 Capitol attack, a DOJ attorney was unable to say with confidence whether the government might eventually release the list, frustrating the judge overseeing the case.

“You represent the government,” U.S. District Judge Jia Cobb said sternly. “The White House wants this information. Does the government have present intent to publicly release names of FBI agents that worked on Jan. 6 cases?”

“People who have the list don’t have present intent,” replied the attorney, Jeremy Simon, who then had to ask for a series of short recesses as he was pressed to provide answers on the government’s stance.

At one point Simon needed to excuse himself into the hallway to speak by phone with his superiors.

The legal challenges began immediately after Trump ignited his barrage of Day-1 executive orders. During a hearing on the administration’s short-lived federal funding freeze, a DOJ attorney appeared unable to provide a clear answer about the extent of the White House’s new policy.

“It seems like the federal government currently doesn’t actually know the full scope of the programs that are going to be subject to the pause. Is that correct?” U.S. District Judge Loren L. AliKhan asked the attorney.

“I can only speak for myself, which is just based on the limited time frame here, that I do not have a comprehensive list,” replied DOJ lawyer Daniel Schwei. “It just depends.”

And during the first court hearing about Trump’s executive order on birthright citizenship, the position of defending Trump’s order put Brett Shumate, the acting assistant attorney general for the DOJ’s civil division, in a federal judge’s firing line.

“In your opinion, is this executive order constitutional?” U.S. District Judge John Coughenour asked Shumate during the hearing.

“Yes, we think it is,” Shumate said, drawing the judge’s rebuke.

“I have difficulty understanding how a member of the bar can state unequivocally that this is a constitutional order. It boggles my mind,” Coughenour said. “Where were the lawyers when this decision was being made?”

A constitutional law expert told ABC News that DOJ attorneys have been rebuked by judges of all stripes.

“They are doing this regardless of geography and regardless of who appointed them,” said Loyola Marymount University law professor Justin Levitt. “So you’ve seen pushback from Reagan appointees, you’ve seen pushback from Bush appointees, you’ve seen pushback from Obama appointees and Trump appointees and Biden appointees, and that’s going to continue.”

Levitt said the results have generally not been in the Trump administration’s favor.

“As far as I can tell, they’re winless in the courts,” he said.

Copyright © 2025, ABC Audio. All rights reserved.