Inside the First Flight of the Qatari-Gifted Air Force One

Summary

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WSJ What’s News – PM Edition

Episode: Inside the First Flight of the Qatari-Gifted Air Force One
Date: July 1, 2026
Host: Alex Osila (The Wall Street Journal)
Key Guests: Lauren Weber, Marcus Weisgerber, Elliot Brown

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Episode Overview

This episode spotlights multiple news fronts, including Federal Reserve policy signals, the expansion of Pell grant eligibility to vocational programs, unprecedented Medicare coverage for weight loss drugs, and the unraveling of the USMCA trade agreement. The centerpiece is an inside look at President Trump's maiden flight aboard the new Air Force One – a Qatari-gifted, ultra-luxurious Boeing 747-8 jet – along with the political, ethical, and security controversies that surround it. The episode also delves into Trump’s unprecedented business earnings from Middle Eastern entities and breaks exclusive news about a SpaceX prototype device.

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Key Discussion Points and Insights

1. Federal Reserve: Inflation & Market Communication

Timestamps: 00:34–02:00

• Fed Chairman Kevin Warsh signals that inflation risks are receding, attributing improvements to market expectations of his "hard line" on prices.
• Warsh advocates for less forward guidance from the Fed, moving away from the crisis-era approach of "spoon feeding markets."
• Notable Quote:
  • "There has been a tendency... where we thought we needed to spoon feed markets to get out of that. That was the right policy for a crisis. It is not the right policy for the time that we have now."
    – Kevin Warsh (01:44)
• Markets anticipate a possible rate hike later in the year but expect a hold at the upcoming meeting.

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2. New Workforce Pell Grants: Changing the Education Landscape

Timestamps: 02:00–04:21
Guest: Lauren Weber, WSJ Reporter

• Expansion of Federal Aid: Pell Grants, traditionally for college students, are now available for short-term vocational training (8–15 weeks).
• Purpose: Boost access to well-paid, high-demand jobs (e.g., paramedics, HVAC techs) and help employers address labor shortages.
• Regulatory delays were caused by difficulty in ensuring federal money goes to "high quality programs" amid less robust accreditation in trade education.
• Grants will average about $2,200 per student (less than the $7,400 for four-year college programs).
• Notable Quote:
  • "A huge roadblock was... making sure that there are guardrails around the quality of the programs."
    – Lauren Weber (03:24)

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3. Medicare Expands to Cover Weight-Loss Drugs

Timestamps: 04:24–05:23

• New Pilot Program: Seniors can now get major weight loss drugs for a $50 monthly copay (down from $450), covering up to 20 million people.
• Drugs Covered: Wegovy (Novo Nordisk), Zepbound (Eli Lilly), and Foundao.
• Coverage is expected to cost billions; its renewal is uncertain after next year.

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4. USMCA Trade Deal in Limbo

Timestamps: 05:23–06:52

• The U.S. refused to extend the USMCA (U.S.-Mexico-Canada Agreement) for another 16 years, despite pressure from Canada and Mexico.
• As a result, annual reviews and negotiations between the three countries will replace the long-term deal structure, causing investment uncertainty.
• Trump’s tariffs and ongoing U.S. demands (reducing trade deficits) are key sticking points.
• Economic Impact: Companies are hesitant on long-term investment, harming the Mexican and Canadian economies.

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5. Exclusive: First Flight on the Qatari-Gifted Air Force One

Timestamps: 06:52–10:02
Guest: Marcus Weisgerber, WSJ National Security Reporter

• Event: President Trump’s maiden voyage on the new Air Force One (a Qatari-donated Boeing 747-8) en route to the Theodore Roosevelt Library opening in North Dakota.
• Luxury Upgrade:
  • The jet is larger (two stories), with a luxurious interior mostly unchanged from its Qatari configuration except for added Presidential Seals and U.S. exit signage.
  • Prior Air Force One described as "utilitarian"; this is markedly more lavish ([07:15] Weisgerber).
• Cost and Modifications:
  • Refurbishment cost $400 million.
  • Focus was on safety and communication capabilities, including secure video, voice, and nuclear command functions.
• Cybersecurity Concerns:
  • Details are classified. The Air Force, per project leads, assures security but offers few specifics.
  • Notable Quote:
    • "I hate to say just like, trust me, but, you know, trust me."
      – L3Harris Technologies Program Manager, paraphrased by Marcus Weisgerber (08:24)
• Ethics and Ownership Controversy:
  • Both parties question the acceptance of a Qatari gift, raising concerns about influence and post-presidential use.
  • Trump desires the jet for his library; Congress is attempting to block private use. Official ownership and ultimate disposition will rest with the Air Force and, potentially, the National Museum of the Air Force.
  • Notable Quote:
    • "...he’s expressed his desire to have an Air Force One in his presidential library in Miami... politics could indeed also play a role into who gets what."
      – Marcus Weisgerber (09:36)

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6. Trump’s Middle Eastern Business Earnings and Conflict of Interest Concerns

Timestamps: 10:06–11:34
Guest: Elliot Brown, WSJ Finance Reporter

• Trump’s financial disclosures reveal $300M income last year from Middle Eastern entities.
  • $263M from the sale of half of World Liberty Financial stake to a UAE-backed entity.
  • The rest from real estate developments (towers/golf courses) in the Gulf.
• These business ties prompt renewed scrutiny about foreign influence over presidential policy, given the lack of a blind trust.
• Notable Quote:
  • "It’s unprecedented to have a president sort of still atop a business where you can tell what all the assets are... The worry is that clouds his policy judgment."
    – Elliot Brown (10:46)

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7. Markets & Business News Briefs

Timestamps: 11:34–12:42

• Markets: Dow flat, S&P and Nasdaq dipped, with the Nasdaq down 0.7%.
• Bending Spoons (Italy-based tech company) surges in IPO, buoyed by its revitalization of legacy brands (AOL, Vimeo, Eventbrite).
• WSJ Exclusive: SpaceX shows investors an early prototype of an AI-powered device ("looks like a phone"), ultra-slim, Qualcomm-powered — in stealth mode.

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Memorable Quotes

• On Fed Crisis-Era Policy:
  "That was the right policy for a crisis. It is not the right policy for the time that we have now."
  — Kevin Warsh (01:44)

• On Ensuring Program Quality for Pell Grants:
  "A huge roadblock was... making sure that there are guardrails around the quality of the programs."
  — Lauren Weber (03:24)

• On the Refurbished Air Force One's Security:
  "I hate to say just like, trust me, but, you know, trust me."
  — L3Harris Technologies Program Manager, paraphrased by Marcus Weisgerber (08:24)

• On Presidential Conflicts of Interest:
  "It’s unprecedented to have a president sort of still atop a business where you can tell what all the assets are... The worry is that clouds his policy judgment."
  — Elliot Brown (10:46)

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Timestamps for Critical Segments

• Fed on Inflation Outlook: 00:34–02:00
• Pell Grants for Vocational Students: 02:00–04:21
• Medicare Weight-Loss Drug Coverage: 04:24–05:23
• USMCA Trade Renewal Turmoil: 05:23–06:52
• Inside the Qatari-Gifted Air Force One: 06:52–10:02
• Trump's Middle Eastern Income & Conflicts: 10:06–11:34
• Markets and SpaceX Prototype Reveal: 11:34–12:42

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Conclusion

This episode balances rapid-fire headline coverage with a unique deep dive into presidential perks, ethical dilemmas, policy changes, and new market movers. The tour of the Qatari Air Force One — and the political questions it raises — offers listeners a rare behind-the-scenes look at the intersection of national security, wealth, and presidential power in today’s world.

Transcript

[Miriam Gottfried]

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[Alex Osila]

Fed Chairman Kevin Warsh says the inflation

[Telus Demos]

outlook is improving expectations of inflation over the first four months. First four weeks of this period they've come down. Inflation risks have come down, but won't

[Alex Osila]

say if the central bank should lift rates. Plus, President Trump takes his maiden flight on the new Air Force One plane that was gifted by Qatar. And the signature trade agreement between the U.S. canada and Mexico is in doubt. It's Wednesday, July 1st. First I'm Alex Osila for the Wall Street Journal. This is the PM edition of what's news, the top headlines and business stories that move the world today. Federal Reserve Chairman Kevin Warsh said today that the risks of higher inflation have receded in his first weeks on the job. He sees that as evidence that markets have already grasped his hard line on prices. Warsh was speaking at a conference of central bankers in Portugal. He's long argued that the Fed should say less about its outlook for the economy, and today he sidestepped questions about future rate decisions and brushed aside complaints that investors need a clearer sense of how the Fed would adjust as the outlook changes.

[Telus Demos]

There has been a tendency, and I take plenty of blame from this, the 08 crisis where we were trying to suppress volatility, where we thought we needed to spoon feed markets to get out of that. That was the right policy for a crisis. It is not the right policy for the time that we have now.

[Alex Osila]

Markets are anticipating a rate increase later this year, though interest rate futures are still expecting a hold at the next meeting later this month. It's July 1st, the start of a new month and a new quarter. There are several government programs that kick off today, plus at least one with a future that's in doubt. First we've got education grants. A growing number of students are enrolling in trade schools instead of a four year college degree. Now the financial aid system is catching up with them. Starting today, Pell grants, the federal financial aid used for college, are available for short term vocational programs. These workforce Pell Grants are an effort to get more people training for jobs that have been hard to fill for years, like paramedics and H VAC specialists. For more, I'm joined now by Journal reporter Lauren Weber. Lauren, this expansion was part of President Trump's big, beautiful bill that Congress passed last year. What was the thought or the goal behind this?

[Lauren Weber]

The goals were two pronged. On the one hand, it's to make this kind of training more accessible. It's also designed to help employers because for many of these roles, they've had shortages. It's been hard to hire people. So the idea is that students are on the path to a well paid, in demand career and also that employers can fill the open jobs that they have.

[Alex Osila]

The idea of expanding federal scholarships for vocational programs has been discussed in Congress for a long time. While why did it take so long to get to this place where they're actually doing it?

[Lauren Weber]

A huge roadblock was the issue of how do we make sure that this money is only going to high quality programs. You have colleges, universities, they have to go through a whole accreditation process. You do have accreditation for trade schools and for community colleges, but it's a little bit more of a wild west in terms of making sure that there are high quality standards. So there was a lot of negotiation among legislators about making sure that there are guardrails around the quality of the programs that are going to be eligible for this money.

[Alex Osila]

How much can someone who applies for one of these grants expect to get?

[Lauren Weber]

That's another place where this differs from the typical Pell Grants. So for a four year college degree, students are eligible for up to around $7,400 a year for the workforce. Pell Grants. The Congressional Budget Office did some projections and they're expecting that grants will be around $2,200. This is for an 8 to 15 week program, so it makes sense that they're less.

[Alex Osila]

That was Journal reporter Lauren Weber. Thanks, Lauren.

[Lauren Weber]

Thank you for having me.

[Alex Osila]

Also starting today, a major expansion of Medicare coverage. A pilot program will offer weight loss drugs for a $50 a month copay, much cheaper than the $450 a month many seniors had to pay before. Up to 20 million people in Medicare will likely be eligible. The new covered drugs are Novo Nordisk's Wegovy and Eli Lilly's Zepbound injection and Foundao pillow. The coverage is expected to cost billions of dollars and the government says it'll run through the end of next year. Beyond that, Medicare has to convince insurers to keep participating. And something that's not being extended. Today it was the deadline to renew the USMCA. That's the trade agreement between the U.S. mexico and Canada that underpins nearly $2 trillion in annual trade. Canada and Mexico were eager to extend the deal for 16 years, but the US declined to do so. That wasn't exactly a surprise. President Trump's tariffs effectively ripped up parts of the deal. The U.S. refusal means that American trade representatives will meet every year for a decade with Mexican and Canadian officials to continually review the deal. And the US has some demands, including that it wants a more level playing field to reduce trade deficits with its neighbors. While you shouldn't expect to feel the impact of this change on prices, it does have an economic effect. Companies are holding back on long term investment plans, and that's hurting the economy in Mexico and Canada. Coming up, investors catch a sneak peek of a Space X AI prototype. And deals from the Middle east made up a notable portion of President Trump's income last year. That's after the break. Hi, this is Alex Osila, host of the WSJ's what's News podcast. We bring you the biggest news of the day, from business and finance to global and political developments that move markets. If you're looking for more insights and tools to understand the latest headlines, consider becoming a subscriber to the Wall street journal. Visit subscribe.WSJ.com whatsnews to subscribe now. Today, President Trump flew to North Dakota for the opening of Theodore Roosevelt's presidential library. But it's worth noting how he got there. It it was the first flight of his new Air Force one, a Boeing 7478 luxury jet donated to the US by the Qatari government last year. Trump had complained that the presidential planes he flew on were too old and small. The new plane is two stories tall, and it's so big that the US Air Force built a $300 million custom hangar complex to accommodate it at Joint Base Andrews. Journal national Security reporter Marcus Weisgerber joins me now from Washington. Marcus, the plane's paint job, red, white, navy and gold, resembles the look of Trump's personal jet. What is it like on board and how does it compare to the previous presidential plane?

[Marcus Weisgerber]

The previous plane is very utilitarian, is the way the general who's overseeing the whole project described it to me. The Qatari plane, the new current Air Force One, is a lot more luxurious. The Air Force did not do a lot to change the interior of this plane, with the exception of a few, you know, pictures. Presidential Seals and such, instead of, you know, contemporary artwork and exit signs that were in Arabic previously swapped them out with some English language exit signs. And the number one priority was to make sure the plane was safe and to make sure the President has the ability to communicate. They put in a communications system that the president needs to be able to conduct business as if he was at the White House and be able to do secure video and voice calls and also be able to, say, transmit the nuclear codes if there is a nuclear war on hands.

[Alex Osila]

This refurbishment, which cost $400 million, addressed a number of things, as you've mentioned, but one concern going into it was the cybersecurity risks from this plane. Did the refurbishment address that at all?

[Marcus Weisgerber]

So much of what is involved in Air Force One are classified. You ask them how they did it, and they will not give you specific answers.

[Telus Demos]

They will just say stuff like, with

[Marcus Weisgerber]

capabilities that the US Government brings to bear, has been used to actually check this thing. And as the program manager from L3Harris Technologies who did the modific, told me a few weeks ago, he's like, I hate to say just like, trust me, but, you know, trust me.

[Alex Osila]

Taking a step back for a second, both Republicans and Democrats have criticized Trump for even accepting this plane in the first place. There were concerns about the ethics and the perceived conflicts of interest. Trump has largely dismissed this criticism. But is it still kind of swirling around or is it really a non issue at this point?

[Marcus Weisgerber]

No, it definitely is. You know, you're still seeing this debate over what happens to the plane when the President leaves office. He's expressed his desire to have and Air Force One in his presidential library in Miami. This plane, though, as the military has told me, it'll be around for as long as it's needed. We've seen a lawmaker, Joe Courtney from Connecticut, introduce an amendment to the National Defense Authorization act to try to actually block Trump from using it as a private jet after he leaves office. One key thing to keep in mind is that the ownership of the plane is by the Air Force. And after it goes out of service, the National Museum of the US Air Force in Dayton, Ohio, takes over that, you know, decides essentially where it goes. And museums can apply to get an Air Force One. Now, the museum is under the jurisdiction of the Secretary of the Air Force, who is a political appointee who reports up through the Defense Secretary to the President of the United States. So politics could indeed also play a role into who gets what.

[Alex Osila]

That was WSJ national security reporter Marcus Weisgerber. Thanks, Marcus.

[Marcus Weisgerber]

Thank You.

[Alex Osila]

On this morning's show, we talked about President Trump's unprecedented income as seen through his most recent round of financial disclosures. The biggest identifiable foreign region in the disclosures was the Middle East. Entities from the Gulf paid around $300 million to the president's businesses last year. Those include $263 million from the sale of half his stake in the cryptocurrency company World Liberty Financial to an entity backed by a top royal in the United Arab Emirates. The remainder of the Gulf money came from two Middle east developers who have launched Trump branded towers and golf courses in the region in the past three years. Journal finance reporter Elliot Brown says that's raising some concerns about conflicts of interest.

[Elliot Brown]

The president has a total foreign policy, policy priority in the Gulf. And at the same time, you have the very countries that he's, he's talking with on the foreign policy side giving him enormous amounts of money. I mean, it's unprecedented to have a president sort of still atop a business where you can tell what all the assets are. Usually they just put it in a blind trust where they don't know what's going on. And with with Trump, his business is being run by his sons, but, but he gets the wealth from it. The White House has been quite explicit that the president has never engaged or will ever engage in conflicts. But the challenge from an ethics perspective is he knows where the money is coming from. The worry is that that clouds his policy judgment. It's very difficult to separate these things.

[Alex Osila]

In market trading today, the Dow was flat and the S and P and Nasdaq slipped. The Nasdaq led the losses and closed down 0.7%. And bending spoons, an Italian company that seeks to revamp tech brands, popped in its stock market debut today. Bending Spoons owns Internet pioneer AOL as well as the video platform Vimeo and the event's website Eventbrite. Its shares closed up about 40%. The Journal is exclusively reporting that Elon Musk's SpaceX has recently shown investors a prototype for an AI device that looks like a phone. It has a sleek design that's slimmer than an iPhone with a proprietary operating system. It would use a Qualcomm Snapdragon chipset. SpaceX told investors that the project's at an early stage. It's not clear if the device will actually be made. Spokespeople for the company and for Qualcomm didn't immediately respond to requests for comment. And that's what's news for this Wednesday afternoon. Today's show is produced by Anthony Banci and Alexis Moore, with supervising producer Tali Arbel. I'm Alex Osoleff for the Wall Street Journal. We'll be back with a new show tomorrow morning. Thanks for listening.

[Marcus Weisgerber]

Foreign.

[Telus Demos]

Hey, this is Telus Demos.

[Miriam Gottfried]

And I'm Miriam Gottfried.

[Alex Osila]

We're reporters at the Wall Street Journal and The hosts of WSJ's take on the Week. It's a weekly show that gives listeners

[Miriam Gottfried]

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[Telus Demos]

From the Fed's moves to market bubbles, we dive into the biggest deals, key players and business news ahead. If you're looking for more news and

[Alex Osila]

tools that you can use to help

[Telus Demos]

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[Alex Osila]

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