Senate Republicans Break With President Trump Over $1.8 Billion Fund

Summary

WSJ What’s News – PM Edition

Episode: Senate Republicans Break With President Trump Over $1.8 Billion Fund
Date: May 21, 2026
Host: Alex Osoleff, The Wall Street Journal

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Episode Overview

This episode tackles major developments in U.S. politics, business, and markets, centering on a dramatic split between Senate Republicans and President Trump over his proposed $1.8 billion “anti-weaponization” fund. The episode also covers SpaceX’s plans for its Starship V3 rocket launch post-IPO filing, a landmark French court ruling involving Air France and Airbus, Walmart’s latest earnings, and trends in both housing and stock markets during the current AI-driven boom.

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Key Discussion Points & Insights

1. Senate GOP vs. Trump: Clash Over “Anti-Weaponization” Fund

(00:44–04:19)

• Growing Tensions: Senate Republicans are publicly rebelling against President Trump’s proposed $1.8B fund designed to compensate individuals claiming to be victims of federal “weaponization.” Senators are concerned this fund could end up compensating people prosecuted for the January 6 Capitol attack.
• Notable Pushback:
  • Senate Majority Leader John Thune called for “very legitimate questions about the fund.”
  • Senator Thom Tillis (NC) took a firmer stance, declaring:

    “If that payout pot for punk's fund is in, there’s no way I’m voting for it.” (01:43)

• Impact on Senate Agenda: The conflict has derailed movement on a $70B multi-year package for ICE and Border Patrol, which had been scheduled for a vote.
• Political Fallout: Trump’s recent endorsements are further straining Senate-White House relations:
  • In Louisiana, Senator Bill Cassidy lost his primary after Trump backed Julia Letlow.
  • In Texas, Trump is endorsing Attorney General Ken Paxton over incumbent Senator John Cornyn, upsetting colleagues since Cornyn is well-liked in the caucus.

“Many of the Senate Republicans feel like Trump has really just cut John Cornyn loose.”
— Ken Thomas (02:54)

• Stalemate Predicted: With trust between the White House and Senate eroding, a legislative standstill is likely until after the midterms.

  “So much of what Congress does is based on vibes and based on relationships with the White House. And that seems to have broken down this week.”
  — Ken Thomas (03:50)

2. Trump, AI, and Regulatory Uncertainty

(04:22–04:50)

• Executive Order Delay: President Trump postponed an executive order that would have enhanced government oversight of AI technologies, citing concerns about slowing U.S. competition with China.

  “We’re leading China. We’re leading everybody. And I don’t want to do anything that’s going to get in the way of that lead.”
  — President Donald Trump (04:36)

• Contrast with California: Governor Gavin Newsom signed a state-level executive order to study AI’s effects on employment and help displaced workers, highlighting divergent state and federal approaches.

3. SpaceX Pushes Forward Post-IPO Filing with Starship V3 Launch

(00:18–00:28, 06:01–08:20)

• IPO Filing and Ambitious Growth: SpaceX has officially filed to go public. Its Starship V3 rocket—bigger, more powerful, and central to future business—is scheduled for a test launch.
• Multi-Billion Dollar Stakes:

  “The company said yesterday in this IPO prospectus that it spent $3 billion alone last year on Starship.”
  — Micah Madenberg (07:57)

• Starship’s Role:
  • Crucial for launching upgraded Starlink satellites and future orbital data centers supporting AI ambitions.
  • Innovations include upgraded Raptor engines and a new launch pad.

• Investor Perspective: Investors want proof of progress after years of tests and technical setbacks, including both successes and dramatic failures.

  “Investors want to see this vehicle getting closer to just regular flights and real operations.”
  — Micah Madenberg (07:57)

4. French Aviation Verdict: Air France & Airbus Found Guilty

(08:20–09:00)

• Historic Case: A French court finds Air France and Airbus guilty of involuntary manslaughter for a 2009 Atlantic crash (228 fatalities).
• Maximum Penalties: Each company fined ~$260,000 (France’s corporate manslaughter cap). Both plan to appeal.

5. Walmart Earnings Underscore Consumer Strain

(09:00–09:36)

• Strong Revenue, Cautious Outlook: Walmart’s Q1 revenues jumped over 7% to $177.8B, but company leadership flagged strain among lower-income customers—especially in fuel purchases.

  “The number of gallons that customers fill up with when they come to our fuel stations fell below 10 for the first time since 2022. That’s an indication of stress.”
  — John David Rainey, Walmart CFO (09:21)

• Market Reaction: Walmart stock dropped over 7%, viewed as a disappointment for investors expecting raised forecasts.

6. Housing Market: Rates Keep Buyers Out

(09:36–10:00)

• Rising Mortgage Rates: Freddie Mac reports the average 30-year fixed mortgage rate rose to 6.51%—the highest since August—further discouraging home buyers amid high prices.

7. Market Recap: AI Boom Leaves Dividend Investors Behind

(10:00–12:32)

• Dividend “Aristocrats” Slip: Companies with decades of rising dividends—like Coca-Cola and Exxon—are now underperforming after years of beating the market.

• Root Cause: The S&P rally is driven by AI-heavy firms that typically don’t pay dividends.

  “They’re not sexy big names… Dividend Aristocrats had been doing brilliantly for years… And since then it’s been terrible.”
  — James McIntosh (11:00)

• FOMO Impact: Investors in dividend stocks haven’t lost money, but they’re missing out on AI-fueled explosive gains.

  “You haven’t lost money, but you’ve just missed out on this great big boom that’s underway.”
  — James McIntosh (12:07)

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Notable Quotes & Memorable Moments

| Timestamp | Speaker | Quote | |-----------|------------------------------------|------------------------------------------------------------| | 00:51 | President Trump | “Are you losing control of the Senate, Senate Republicans? I don't know. I really don't know. I can tell you I only do what's right.” | | 01:43 | Senator Thom Tillis (quoted) | “If that payout pot for punk's fund is in, there’s no way I’m voting for it.” | | 02:54 | Ken Thomas (WSJ Political Reporter)| “Trump has really just cut John Cornyn loose.” | | 03:50 | Ken Thomas | “So much of what Congress does is based on vibes and based on relationships with the White House. And that seems to have broken down this week.” | | 04:36 | President Trump | “We’re leading China. We’re leading everybody. And I don’t want to do anything that’s going to get in the way of that lead.” | | 07:57 | Micah Madenberg | “The company said yesterday in this IPO prospectus that it spent $3 billion alone last year on Starship.” | | 09:21 | John David Rainey (Walmart CFO) | “The number of gallons that customers fill up with when they come to our fuel stations fell below 10 for the first time since 2022. That’s an indication of stress.” | | 11:00 | James McIntosh | “They’re not sexy big names… Dividend Aristocrats had been doing brilliantly for years… And since then it’s been terrible.” | | 12:07 | James McIntosh | “You haven’t lost money, but you’ve just missed out on this great big boom that’s underway.” |

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Timestamps for Key Segments

• Senate GOP Breaks With Trump on Fund: 00:44–04:19
• Trump AI Oversight Delay & Newsom’s Action: 04:22–04:50
• SpaceX Starship V3 Launch Plans: 06:01–08:20, earlier at 00:18–00:28
• Air France/Airbus Verdict: 08:20–09:00
• Walmart Q1 Earnings & Consumer Stress: 09:00–09:36
• Housing Market & Mortgage Update: 09:36–10:00
• Dividends vs. AI Market Boom: 10:00–12:32

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Episode Tone

Direct, news-driven, and analytically sharp—reflecting the Wall Street Journal’s style. The discussion is fast-paced, focusing on both political intrigue and major business/market trends, with expert guests providing context and commentary.

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Summary

In a pivotal week for Washington, President Trump faces rare open revolt from Senate Republicans—both over a contentious $1.8B fund and the handling of key endorsements—throwing his legislative agenda into question ahead of midterms. Meanwhile, SpaceX eagerly eyes a future built on Starship as IPO details are revealed, the French aviation industry faces legal reckoning, Walmart’s earnings signal consumer stress, mortgage rates quell home buying, and dividend investors struggle to keep pace as AI stocks drive market gains.

Transcript

[Google Representative]

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[Alex Osoleff]

SpaceX officially filed for an IPO yesterday. And tonight it has a test flight for a new version of its Starship rocket. That's central to its future business.

[Micah Madenberg]

The company really needs it to start blasting off upgraded Starlink satellites and to start flying orbital data centers that it could use for its artificial intelligence ambitions. None of that is possible without Starship Plus.

[Alex Osoleff]

Senate Republicans are pushing back against President Trump over his $1.8 billion, quote, anti weaponization fund.

[President Donald Trump]

Are you losing control of the Senate, Senate Republicans? I don't know. I really don't know. I can tell you I only do what's right.

[Alex Osoleff]

And a French court finds Air France and Airbus guilty in a plane crash that killed more than 200 people. The country's worst ever aviation disaster. It's Thursday, May 21st. I'm Alex Osoleff 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. President Trump and the GOP controlled Senate are on a collision course. A growing number of senators have publicly criticized the administration's controversial, quote, anti weaponization fund. Senate Majority Leader John Thune said lawmakers had, quote, very legitimate questions about the fund, while North Carolina Senator Thom Tillis had some choicer words.

[Ken Thomas]

If that payout pot for punk's fund

[Alex Osoleff]

is in, there's no way I'm voting for it. Those frustrations are now spilling out into the Senate's agenda. For more, I'm joined now by WSJ national political reporter Ken Thomas in Washington. Ken, I know that Republican senators were aiming to pass this $70 billion multi year package for Immigration and Customs Enforcement and Border Patrol this week. Seems like that has now been pushed. What's going on there?

[Ken Thomas]

This plan has really gone off the rails. There's been frustration mounting on Capitol Hill among congressional Republicans, and we're really starting to see it spill out into the open. Many Republicans object to the Trump administration's creation of of a $1.8 billion fund to compensate people who claim to have been victims of weaponization by the federal government. There are fears on Capitol Hill that this could lead to the compensation of people who were Prosecuted in the January 6, 2021 attack on the Capitol.

[Alex Osoleff]

And some of President Trump's endorsements have angered Republicans. Right. In Louisiana, Senator Bill Cassidy lost his primary after Trump endorsed Julia Letlow And Trump is opposing Senator John Cornyn's reelection in Texas.

[Ken Thomas]

Trump's decision to endorse Texas Attorney General Ken Paxton over Senator Cornyn has really rubbed people the wrong way in the Senate. Cornyn is really well liked among Senate Republicans. He led the Senate campaign arm for a period. And so many of the Senate Republicans feel like Trump has really just cut John Cornyn loose. And Bill Cassidy, again, is someone who has been a good member within the Senate Republican Caucus. Many members there see him as a thoughtful senator. And these endorsement decisions by Trump has really had a negative effect on relationships between the Senate and the White House.

[Alex Osoleff]

Ken, this feels like a pretty dramatic shift for this Congress that has been, you know, pretty closely staying in line behind President Trump up to this point. What does this mean for President Trump's agenda ahead of the midterms?

[Ken Thomas]

Some former White House officials I've spoken with say that they think the legislative agenda may just be at a standstill, that we really may not see much more progress on Capitol Hill until after the November elections. So much of what Congress does is based on vibes and based on relationships with the White House. And that seems to have broken down this week.

[Alex Osoleff]

That was WSJ national political reporter Ken Thomas. Thanks so much, Ken.

[James McIntosh]

Thanks.

[Alex Osoleff]

President Trump has delayed an executive order that would have given the government more oversight over AI. The president told reporters in the Oval Office today that he didn't want to do anything that would slow the US down in its AI competition with China.

[President Donald Trump]

We're leading China. We're leading everybody. And I don't want to do anything that's going to get in the way of that lead. We have a very substantial it's causing, it's causing tremendous good, and it's also bringing in a lot of jobs.

[Alex Osoleff]

Meanwhile, in California, Governor Gavin Newsom did sign an executive order on AI. It aims to study how artificial intelligence affects employment. And he wants to explore ways to help workers who are displaced by the technology. Silicon Valley companies have been cutting thousands of jobs as AI transforms their operations. Newsom, a Democrat, is seen as a potential 2028 presidential candidate. Coming up, why investors focusing on dividends have been missing out on the AI boom. That's after the break.

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[Alex Osoleff]

A day after officially kicking off its IPO process, SpaceX is planning to launch a new version of its starship rocket. The V3 Starship is bigger and more powerful than any rocket ever built and Central to Elon Musk's vision for SpaceX's future. The company wants Starship to fly thousands of times a year, deploying satellites and other cargo. But the rocket program has faced technical setbacks and consumed $15 billion in investment. The V3 is scheduled to take off this evening from Texas. Micah Madenberg covers space for the Journal and is here now with more. Micah why is Starship so central to SpaceX's growth plans?

[Micah Madenberg]

Starship is sort of the thread that runs through a lot of what SpaceX is planning to do in the near term. The company really needs it to start blasting off upgraded Starlink satellites and to start flying orbital data centers that it could use for its artificial intelligence ambitions. None of that is possible without Starship.

[Alex Osoleff]

For the past three years that the Starship program has been operational, the track record has been kind of mixed. Some tests have gone according to plan and other ones have ended in explosions. Not ideal. How does this model try to improve on Those previous versions?

[Micah Madenberg]

SpaceX has what they call sort of this iterative model to hardware development where they are open to failure and say that's the price of learning. The V3 is meant to kind of lock in some of that learning. A lot of us are going to be watching the debut of upgraded Raptor engines. These are supposed to have more power. SpaceX is also going to be launching from a new launch pad that's not technically, of course, part of the rocket, but it's a really critical piece of the overall infrastructure that this version of Starship needs.

[Alex Osoleff]

As I mentioned, this launch comes just a day after would be investors finally saw under the hood of some of SpaceX's financials. What what are investors hoping to see from this launch?

[Micah Madenberg]

Progress. You know, the company said yesterday in this IPO prospectus that it spent $3 billion alone last year on Starship. That's a lot of money for a rocket that poses a lot of challenges, but also offers a lot of potential opportunities and investors want to see this vehicle getting closer to just regular flights and real operations.

[Alex Osoleff]

That was WSJ reporter Micah Madenberg Thanks Micah, thank you. Turning now to one of the worst aviation disasters this century, a French court today found that Airbus and Air France were guilty of involuntary manslaughter for a 2009 crash over the Atlantic that killed 228 passengers and crew. The court sided with prosecutors who argued that negligence by the plane maker and the airline contributed to the crash. Each company was fined about $260,000. That's France's maximum penalty for corporate manslaughter. Air France and Airbus said they would file appeals with France's highest court, citing earlier rulings that acquitted them. Walmart today reported strong sales growth in its most recent quarter. Revenue rose more than 7% to $177.8 billion. But Walmart CFO John David Rainey told analysts on today's earnings call that lower income customers were sending warning signs, especially at the company's gas stations.

[John David Rainey]

We have a large fuel business and we see that in the most recent period, the number of gallons that customers fill up with when they come to our fuel stations fell below 10 for the first time since 2022. That's an indication of stress.

[Alex Osoleff]

The company noted that rising fuel prices could actually be an opportunity if it draws more shoppers to its stores seeking bargains. For now, Walmart plans to keep prices low to grab market share, but the company could lift prices later. Walmart largely left its financial expectations unchanged for the rest of the year, a disappointment for some investors. Its stock closed down more than 7%. And in the housing market, the latest mortgage data is more bad news for the spring selling season. Freddie Mac said today that the average rate on a 30 year fixed mortgage rose to 6.51% this week from 6.36% last week. That's the highest level since August. Rising mortgage rates and high home prices are keeping would be buyers out of the market. In market trading, the Dow led gains in the indexes today. It rose 0.6% and closed at a record. Tech stocks were mixed with Nvidia dropping 1.8% despite its strong results after the market closed yesterday. In Asian trading, Japan's SoftBank surged nearly 20% on the news that OpenAI, one of its key investments, is preparing to file for an IPO very soon. It's been a difficult time for investors who focus on dividends. WSJ senior Markets columnist James McIntosh cracked the data on the S&P 500 companies and found that investors who want the safety of dividend stocks are missing out on the market rally.

[James McIntosh]

The aspect I was looking at was the highest quality dividend so this is companies that have managed to not only pay a dividend every year for 25 years, but have increased it every year as well. They've become known as the Dividend Aristocrats, which is a S and P index. So the idea here is that you're buying safe, high quality companies that are sure to be able to pay their dividend. They're not sexy big names, but they are big names. So people like Coca Cola, which I don't think investors have thought was sexy for, well, since the days of Cherry Coke. ExxonMobil's another one. The Dividend Aristocrats had been doing brilliantly for years and years and years. And it beat the S&P 500 right up until about three years ago. And since then it's been terrible. It's having its worst three year period, period since the dot com bubble when dividend investing also went out of fashion. And the reason's the same, which is that a whole bunch of companies that don't pay dividends are doing incredibly well.

[Alex Osoleff]

James says tech companies that don't pay dividends are attracting investors instead. In this AI boom era, mostly it's

[James McIntosh]

that you're missing out rather than that you're doing badly because of it. They're supposed to be slow and steady companies. If you bought them, you know you haven't lost money, but you've just missed out on this great big boom that's underway. So you're probably not feeling very excited about your portfolio and probably a bit jealous of the guys who picked some of the AI stocks and have made big money.

[Alex Osoleff]

And that's what's news for this Thursday afternoon. Today's show was produced by Danny Lewis and Alexis Moore with supervising producer Tali Arbel. I'm Alex Osola for the Wall Street Journal. We'll be back with a new show tomorrow morning. Thanks for listening.

[Telus Demos]

Hey, this is Telus Demos and I'm Miriam Gottfried.

[Alex Osoleff]

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 a leg up in the world of markets and investing.

[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 tools that you can use to help navigate markets, consider becoming a subscriber to the Wall street journal.

[Alex Osoleff]

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