WSJ What’s News: Episode Summary - "Megabill’s Fate Uncertain as Senators Continue Marathon Voting"

Release Date: June 30, 2025

The Wall Street Journal's "What’s News" podcast episode titled "Megabill’s Fate Uncertain as Senators Continue Marathon Voting" delves into pivotal developments in U.S. politics, business, and finance. Hosted by Alex Osila, the episode provides listeners with an in-depth analysis of the ongoing legislative battles, significant legal actions, and market movements shaping the current landscape.

1. Legislative Push: Senate Republicans' Marathon Session

Key Focus: Senate Republicans' efforts to pass President Trump's ambitious tax and spending bill by the self-imposed July 4th deadline.

Discussion:

• Alex Osila introduces the central theme, highlighting the Republicans' determination to advance the "big beautiful bill" through a grueling marathon session in the Senate.

• Interview with Richard Rubin, WSJ Tax Policy Reporter (Timestamp [00:49] - [04:20]):

  • Voting Dynamics: Rubin explains that while Republicans are keen to pass the bill, they face challenges in securing the necessary votes. "Republicans really do want to pass a bill. They're ready to go, but they don't have the votes yet," he notes ([00:40]).

  • Procedural Moves: A critical procedural vote passed along party lines (53-47) declared that Republicans' extensions of expiring tax cuts do not impact the federal budget, facilitating efforts to make these tax cuts permanent through a simple majority ([01:30]).

  • Internal Factions and Amendments: Rubin outlines the internal GOP debates, with senators like Lisa Murkowski and Susan Collins proposing amendments related to renewable energy credits and tax rates for high earners. Simultaneously, figures like Rick Scott and Cynthia Lummis push to freeze and repeal Medicaid expansions.

  • Likelihood of Passing: Despite enthusiasm, Rubin remains cautious. He states, "It is certainly not a given that this will happen," emphasizing uncertainties surrounding the bill's passage by the July 4th deadline ([03:42]).

2. Stock Market Performance: Record Highs in a Volatile Quarter

Overview: U.S. stock markets concluded a turbulent quarter on a high note, with major indices reaching all-time highs.

• S&P 500 and Nasdaq: Both indices rose approximately 0.5%, closing at unprecedented levels.

• Dow Jones Industrial Average: Increased by about 0.6%, contributing to the positive market sentiment.

3. Legal Battles: Trump Administration vs. Los Angeles

Issue: The Trump administration has initiated a lawsuit against Los Angeles over its sanctuary city policies.

Details:

• Allegations: The administration contends that a city ordinance limiting cooperation with federal immigration authorities violates the Constitution's supremacy clause, thereby hindering enforcement actions.

• Defendants: Los Angeles, Democratic Mayor Karen Bass, and the City Council.

• Response: Mayor Bass's office has not yet responded to requests for comment.

4. Harvard Under Scrutiny: Civil Rights Violations Allegation

Focus: The Trump administration's investigation into Harvard University for alleged violations of civil rights concerning Jewish and Israeli students.

Interview with Doug Belkin, WSJ Higher Education Reporter (Timestamp [05:54] - [08:09]):

• Findings of the Investigation: Belkin details that the administration's report cites instances of antisemitism at Harvard between 2023 and 2025, including harassment, social ostracization, and physical aggression against Jewish students ([05:54]).

• Harvard's Response: The university acknowledges the issues and asserts its commitment to combating antisemitism and fostering an environment conducive to open debate without infringing on civil rights ([06:21]).

• Implications: Belkin discusses the potential consequences, including the freezing of $2.3 billion in federal research funding and ongoing court battles. He suggests that the administration's actions may be a strategic move to leverage negotiations outside the courtroom ([06:47]).

• Administration's Goals: The Trump administration aims to promote patriotism and a unified American identity within universities, criticizing current trends toward identity-based grievances ([07:31]).

5. DEI Practices at Cornell University

Development: The America First Policy Institute has filed a civil rights complaint against Cornell University, alleging discriminatory Diversity, Equity, and Inclusion (DEI) practices in hiring and scholarships.

Responses:

• Cornell University's Statement: The institution maintains that its hiring policies are merit-based and explicitly prohibit discrimination.

6. Dividend Stocks: Investors' Increasing Affection

Topic: The enduring appeal of dividend-paying stocks and their impact on investment returns.

Interview with Spencer Jacob, WSJ Investing Columnist (Timestamp [08:45] - [11:51]):

• Historical Perspective: Jacob references a 1960s study suggesting that dividends should be irrelevant to wealth maximization since they merely redistribute existing value ([09:43]).

• Modern Insights: Contrarily, recent studies indicate that dividend-paying stocks outperform non-dividend payers. Jacob explains that these companies often represent higher quality and value, as their commitment to dividends signals financial stability and prudent cash management ([10:34]).

• Investor Behavior: Contrary to the expectation that dividend investors spend their payouts, Jacob found that most reinvest dividends, further enhancing returns. This behavior underscores the quality of dividend-paying companies ([11:29]).

• Surprising Findings: Jacob expresses surprise that dividend preferences do not necessarily correlate with immediate income needs, as investors tend to reinvest rather than spend the dividends ([11:29]).

7. Business News: Regulatory Challenges for Tech and Aerospace Giants

Apple in the European Union:

• Announcement: Apple has postponed the release of certain new features in the EU due to compliance challenges with the Digital Markets Act, aimed at reducing the dominance of large tech firms and assisting smaller developers.

• Apple's Stance: The company criticizes the law for complicating the rollout of new software features in Europe.

Boeing's Acquisition of Spirit Aerosystems:

• Regulatory Scrutiny: The UK’s Competition and Markets Authority has initiated a formal antitrust investigation into Boeing's deal to acquire Spirit Aerosystems.

• Potential Hurdles: The investigation may delay Boeing's efforts to integrate Spirit's operations and stabilize its supply chain, with a decision expected by August 28.

Conclusion

The episode of "What’s News" provides a comprehensive overview of significant legislative efforts, legal confrontations between federal authorities and major cities and universities, nuanced insights into investor behavior regarding dividends, and ongoing regulatory challenges faced by leading corporations. Through expert interviews and detailed reporting, the podcast equips listeners with a nuanced understanding of the intersecting forces shaping today's economic and political environment.

Produced by Pierre Bienname with Supervising Producer Michael Cosmides and additional support by Coleman Standifer.