U.S. Government Reopens, But Slowly

Summary

WSJ What’s News: “U.S. Government Reopens, But Slowly”

Date: November 13, 2025
Host: Caitlin McCabe (The Wall Street Journal)
Guests: Ken Thomas, Stu Wu, Ji Young Sohn

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Episode Overview

This episode covers the aftermath and implications of the U.S. government reopening after a historic 43-day shutdown, the political maneuvering surrounding the ongoing investigation into Jeffrey Epstein’s ties with high-profile figures (notably Donald Trump), and the growing complexity in the global AI chip race, particularly how Chinese companies are navigating U.S. export restrictions. The show also highlights a groundbreaking AI-run data center project in South Korea, contextualizing major business and political developments with clear, actionable insight.

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Key Discussion Points & Insights

1. U.S. Government Reopens, But Recovery Is Slow

[00:18–02:53]

• Funding Bill Passage:

  • The Republican-led House approved a spending package extending federal funding through January, signed into law by President Trump.
  • Key inclusions:
    • Full-year funding for the Agriculture Department, military construction, and the legislative branch.
    • Guaranteed reversal of Trump-initiated federal layoffs aimed at pressuring Democrats during the shutdown.
    • Moratorium on further federal workforce cuts.

• Reopening Challenges:

  • Not all agencies will resume regular operations immediately.
  • Ken Thomas:

    “The return to work process will vary agency by agency, but many employees were told to be prepared to return to work on Thursday.” (01:57)

  • Backlogs affect:
    • Air travel: Aviation officials estimate days or more before normalcy ([01:57])
    • SNAP benefits: Uncertain timing for restoring food aid to 40 million Americans.
    • National parks: Services resuming; most parks were open during the shutdown but with skeleton staffing.

• Missing Economic Data:

  • No immediate return for essential government reports (e.g., CPI, jobs numbers) interrupted by the shutdown.
  • Caitlin McCabe:

    “The two major government reports on inflation and the labor market for October are likely never to be released.” (02:53)

  • The Bureau of Labor Statistics has provided no timeline for clearing the results backlog.
  • Listeners are encouraged to look at alternatives, like copper prices, covered in a related podcast episode.

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2. Epstein Email Releases Prompt New Political Tensions

[02:53–06:33]

• House Moves on Epstein Files Disclosure:

  • Rep. Adelita Grijalva (D-AZ) gave the final needed signature on a bipartisan petition compelling a House vote to release Epstein records, moments after her swearing-in to fill her late father’s seat.
  • Adelita Grijalva:

    “With my signing, we move one step closer to the truth… survivors deserve their day of justice and the American people demand it.” (03:41)

  • The bill could face obstacles in the Senate and a Trump veto, but the House vote would put lawmakers publicly on record.

• Document Dump:

  • Democrats released emails in which Epstein discussed Trump; in response, House Republicans released over 20,000 pages of Epstein documents.
  • Trump White House Reaction:
    • Press Secretary Caroline Levitt called the timing a “distraction campaign by the Democrat in the liberal media.” (04:42)
    • Trump reiterated he cut all ties with Epstein before Epstein’s first 2006 arrest.

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3. U.S.-China AI Chip Export Loopholes

[06:49–10:52]

• Export Restrictions and Workarounds:

  • The U.S. bars export of Nvidia’s most advanced chips directly to China due to military and security concerns.
  • Stu Wu:

    “For the past three years, the US Government has made it forbidden for Nvidia to sell its most advanced chips to China... directly sending those chips to China, not allowed. But there is this gray area—what if they’re sent to a third country like Indonesia? Can a Chinese company access those chips there? … In many cases, yes, they can do that totally legally.” (07:43)

• Case Study: Chips to Indonesia, Ends in Chinese Hands:

  • Nvidia sells chips to hardware makers, who sell to Indonesian data centers, which then resell to Chinese AI firms.
  • Wu:

    “It took four companies. It starts with Nvidia, then it starts with somebody who buys Nvidia chips... and finally the final customer is the Chinese AI company.” (08:35)

• Legal and Policy Gray Areas:

  • No laws are directly broken in these circumvention cases; potential violation of the policy’s “spirit” rather than letter.
  • Wu:

    “There’s no evidence that they broke any law. Now, the question here is, did they break the spirit of the law?” (09:16)

  • A stricter rule proposed under Biden—requiring government permission for any export to third-party countries—was lobbied against by Nvidia and dropped by the Trump administration.
  • New regulatory clarifications are expected in the coming weeks.

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4. AI-Designed, AI-Run Data Center in South Korea

[11:01–12:45]

• New AI Milestone:

  • A $35 billion data center under development in South Korea may be the first designed, built, and run by AI.
  • Ji Young Sohn:

    “AI will be the one making optimal decisions on things like how to design the layout... energy usage, how to set up the cooling systems... and once the data center is up and running, the company expects that AI will be able to run it in the most efficient manner.” (11:25)

• Industry Impact:

  • Expected capacity: up to 3 gigawatts—three times the size of OpenAI’s “Stargate” complex in Texas ([12:17]).
  • Human supervisors will remain, but AI will optimize for myriad variables, potentially setting a new standard for infrastructure design and management.

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Notable Quotes & Memorable Moments

• Ken Thomas on the return-to-work process:

  “Once employees are back, they will have a lot of work that's piled up… It will take days, perhaps longer, before US Air travel goes back to normal.” (01:57)

• Adelita Grijalva on transparency:

  “With my signing, we move one step closer to the truth… survivors deserve their day of justice and the American people demand it.” (03:41)

• Caroline Levitt (Trump Press Secretary) on the political maneuvering:

  “Another distraction campaign by the Democrat in the liberal media and it’s why I’m being asked questions about Epstein instead of the government reopening…” (04:42)

• Stu Wu explaining the chip export gray area:

  “But there is this gray area. What if they're sent to a third country like Indonesia? Can a Chinese company access those chips there? … In many cases, yes, they can do that totally legally.” (07:43)

• Ji Young Sohn on the AI-run data center’s innovation:

  “In the beginning stages, AI will be the one making optimal decisions on things like how to design the layout... and once the data center is up and running, the company expects that AI will be able to run it in the most efficient manner.” (11:25)

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Timestamps for Important Segments

• 00:18: Episode theme and top stories recap
• 00:55: Breakdown of the government shutdown, new funding bill
• 01:57: Ken Thomas on challenges and delays in resuming government services
• 02:53: Effects of the shutdown on SNAP, travel, national parks, missing government economic data
• 03:41: Epstein files political updates; Rep. Grijalva’s impact
• 04:42: White House response to Epstein document dump
• 06:49: Vanguard research insights on human investing behavior
• 07:43: Stu Wu details Nvidia chip export loopholes
• 08:35: Story of US chips going through intermediaries to Chinese AI firms
• 09:16: Legalities and spirit versus letter of U.S. export controls
• 10:10: Explaining regulatory gaps between Biden and Trump administrations
• 11:25: Ji Young Sohn on the South Korean AI data center project
• 12:17: AI facility’s planned size vs. current data center industry standards

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Conclusion

This episode of “What’s News” deftly weaves together the immediate challenges of restarting government after a record shutdown, the high-stakes political drama of the Epstein files, and the geostrategic tug-of-war over AI technology. Through interviews and expert commentary, listeners receive a concise yet comprehensive update on the intersection of governance, technology, and politics as they unfold in real time.

Transcript

[Stu Wu]

Every business wants to grow, but to get there you must brave the river of certain uncertainty or rely on the AI powered capabilities of SAP to help you grow despite the uncertainty so your business can stay unbeatable. Bring out your best with SAP.

[Caitlin McCabe]

The US Government is back in business, but don't expect things to run at full tilt just yet. Plus, Democrats release new emails from Jeffrey Epstein in which the late financier discussed Donald Trump Trump and we explore how a Chinese AI company worked around US Rules to access Nvidia's top chips directly.

[Stu Wu]

Sending those chips to China? Not allowed. But there is this gray area. What if they're sent to a third country like Indonesia? Can a Chinese company access those chips there? And it turns out that in many cases, yes, they can do that totally legally.

[Caitlin McCabe]

It's Thursday, November 13th. I'm Caitlin McCabe for the Wall Street Journal and here is the AM edition of what's news, the top headlines and business stor moving your world. Today, the US Government is officially reopened after being closed for a record long 43 days. The Republican led House passed a spending package late yesterday that extends funding for the federal government through January, after which President Trump signed it into law. The bill package passed yesterday includes full year funding for the Agriculture Department, military, construction and Legislative branch insured paychecks for federal employees and included language guaranteeing the reversal of federal layoffs that were initiated by the Trump administration to try and pressure Democrats during the shutdown, as well as a moratorium on future cuts. But as Journal political reporter Ken Thomas explains, getting the government up and running won't necessarily happen overnight.

[Ken Thomas]

The return to work process will vary agency by agency, but many employees were told to be prepared to return to work on Thursday. Once employees are back, they will have a lot of work that's piled up. Aviation officials said. It will take days, perhaps longer, before US Air travel goes back to normal. Airlines will need time to adjust their schedules. For more than 40 million Americans who receive benefits through the Supplemental Nutrition Assistance Program, or snap, it still remains unclear how quickly states will receive SNAP funding. Tourists should see a resumption in services in places like the national parks. Many of the parks around the country stayed partially open during the shutdown but were staffed with a limited number of employees.

[Caitlin McCabe]

The government reopening also doesn't mean an immediate return of government data releases like today's CPI print. White House press Secretary Caroline Levitt says the two major major government reports on inflation and the labor market for October are likely never to be released. Blaming the government shutdown, the Bureau of Labor Statistics hasn't yet said when it is likely to start catching up on the backlog of important economic reports or which ones might be compromised by the shutdown. A BLS spokesperson didn't immediately respond to a request for comment. And if you're wondering what alternative indicators to look at for a steer on the U.S. economy, our latest what's News podcast series has been looking at just that. The second episode landed in your feed yesterday. In it, we look at copper prices, which for decades have corresponded to how the economy is doing. We dig into why that is and whether it's still true. Now check it out in the what's News podcast feed. Wherever you get your podcasts now. While the shutdown deal was moving through Washington yesterday, lawmakers attention turned to the release of a cache of emails belonging to late sex offender Jeff Jeffrey Epstein. Late yesterday, Representative Adelita Grijalva became the crucial 218th lawmaker to sign onto a bipartisan petition aimed at forcing a House vote on releasing files related to Epstein. The Democrat from Arizona did so moments after being sworn in, seven weeks after she won a special election in Arizona to fill the House seat last held by her late father. Speaker Johnson purposefully obstructed my swearing in by canceling vote after vote and the Epstein files discharge petition sat one signature short. With my signing, we move one step closer to the truth. The truth that they will try to deny, but that survivors deserve their day of justice and the American people demand it. Johnson told reporters that he expected to bring the matter to the floor next week. Although the legislation to compel the Justice Department to release Epstein files is unlikely to become law, it still faces a Senate vote and could be vetoed by President Trump. But the House vote serves to put lawmakers on record. Earlier in the day, Democrats released a handful of emails from Epstein in which he discussed Trump, which prompted the Republican led House Oversight Committee to Release more than 20,000 pages of other Epstein documents. Trump and White House Press Secretary Caroline Levitt accused Democrats of releasing the emails as a distraction. There are no coincidences in Washington, D.C. and it is not a coincidence that the Democrats leaked these emails to the fake news this morning ahead of Republicans reopening the government. This is another distraction campaign by the Democrat in the liberal media and it's why I'm being asked questions about Epstein instead of the government reopening because of Republicans and President Trump. Trump has said he cut off ties long before Epstein was first arrested in 2006. You can find a link to read some of the emails that mention Trump and other documents released yester in our show. Notes coming up. With China blocked from getting coveted AI chips made by US Companies, Beijing is taking a new aggressive approach in the AI arms race. More on that story after the break. Here's Vanguard's Andy Reid, head of behavioral economics research, explaining why humans aren't necessarily wired for investing success.

[Stu Wu]

Being an expert in investing is rare. It's the exception to the rule. The average American lacks foundational knowledge and they don't teach this stuff in schools. We're working on it though. You've got people who are sort of, let's say, unskilled and unaware. So they're overconfident. They make really risky bets, they make more trades and they get worse performance.

[Caitlin McCabe]

Get more insights from Vanguard on how you can navigate an uncertain [e-mail] US restrictions on AI chip exports to China are really starting to bite, and that's prompting Beijing to intervene. China's government is directing who gets the bulk of domestically made AI chips. And some Chinese tech companies are using workarounds like bundling thousands of chips together. Crucially, some are smuggling or acquiring through legal means chips made by Nvidia to train AI models. The journal Stu Wu helped trace a chain of deals across several countries that show how American technology was ultimately made available to a Chinese company. Stu, let's start with a little background. Where do things stand with Nvidia, which is a California based company, and its ability to sell chips to China?

[Stu Wu]

Yeah, so here's the interesting thing. For the past three years, the US Government has made it forbidden for Nvidia to sell its most advanced chips to China. That's because Nvidia is the world's best AI chip company. And the US Government is afraid that those chips can be used to help China assimilate military intelligence operations or to develop nuclear weapons, for instance. So directly sending those chips to China, not allowed. But there is this gray area. What if they're sent to a third country like Indonesia? Can a Chinese company access those chips there? And it turns out that in many cases, yes, they can do that totally legally.

[Caitlin McCabe]

Yeah. You've got a really interesting story here that looks at that. You found a case where more than 2,000 Nvidia chips ended up in a building in Indonesia's capital, ready to do work for a Chinese AI company. Can you tell us more about what you found?

[Stu Wu]

Okay, so the first thing to know is that Nvidia often doesn't sell chips directly to its customers or the people who use them to train AI. That is, they'll sell them to another company that makes computer servers with them. So in this case, Nvidia sold it to a company that made these servers. This company sold it then to a different company, one in Indonesia that sells computing power. And that Indonesian data center, in fact, was the one that found the Chinese customer. So it took four companies. It starts with Nvidia, then it starts with somebody who buys Nvidia chips, mix servers, then it goes to an Indonesian data center, and finally the final customer is the Chinese AI company.

[Caitlin McCabe]

That sounds pretty complicated. Is there evidence that These deals violated U.S. law in any way?

[Stu Wu]

I ran this exact scenario by some folks who helped design some of the export controls, and they said no. If all the companies are doing what they say they did, then there's no evidence that they broke any law. Now, the question here is that, did they break the spirit of the law? Because as you said earlier, President Trump says he doesn't want China accessing these chips. And the answer is, well, that's kind of unclear. The US Government has left a lot of this in a gray area. And in the weeks and months ahead, they might take steps to make it so that Chinese companies can't do things like this.

[Caitlin McCabe]

Yeah, I was going to say your story mentions that under the Biden administration, a rule was created that would have tightened controls over the sale of advanced American chips to countries such as Indonesia, but that the truck administration said it wouldn't enforce the rule. Can you talk us through how that rule would have worked and why the Trump administration decided to not enforce it?

[Stu Wu]

So what happened is that in the last days of the Biden administration, they passed this rule that said, if you're a company that has Nvidia chips, hey, you can't sell it to a third country without applying for permission from the US Government. A lot of businesses complain about that, including Nvidia. They said, whoa, whoa, whoa, it'd be better if the world were hooked on Nvidia chips, because they can buy our chips and keep on financing our R and D so we can stay ahead. So they lobbied hard against that. So the Trump administration apparently heard those arguments and they thought, okay, that is a good argument. But there's still some disagreement within the Trump administration about that, and they've indicated that they're still working on these export controls. So over the next weeks and months, we might see the Trump administration clarify what they meant.

[Caitlin McCabe]

That's Stu Wu, who covers business in Asia for the Journal. Stu, thanks for joining us.

[Stu Wu]

Thanks, Kayla.

[Caitlin McCabe]

And while announcements of new data centers are seemingly a dime a dozen these days. It's not every day that you encounter one that is slated to be built and run by AI itself. As the Journal's Ji Young Sohn explains, a $35 billion facility under development in South Korea could be the world's first large scale data center, designed, built, and run by artificial intelligence.

[Ji Young Sohn]

In the beginning stages, AI will be the one making optimal decisions on things like how to design the layout of the floors and ceilings, how to set up the facilities, energy usage, how to set up the cooling systems using the least amount of water, and so on. And once the data center is up and running, the company expects that AI will be able to run it in the most efficient manner. For instance, they expect AI to be very good at adapting the data center to better accommodate the different types of AI workloads that it will be given. And these are tasks that AI will be able to do faster and more efficiently compared to humans, Ji Young says.

[Caitlin McCabe]

Humans will still be involved, but in more of a supervisory role. If completed by 2028, the data center is expected to pack up to 3 gigawatts of power, which Ji Young says will make it one of the biggest in the world.

[Ji Young Sohn]

Most data centers today are capped at a capacity of 1 gigawatt of power due to the difficulty of getting enough electricity and resources like water that's needed to cool down all the servers that side. But this envisioned data center in Korea aims to be much bigger than that. So to give you a comparison, it'll be nearly three times the planned capacity of a data center complex in Texas that OpenAI is preparing as part of their Stargate project in the us.

[Caitlin McCabe]

And that's it for what's news for this Thursday morning. Today's show is produced by Daniel Bach. Our supervising producer was Sandra Kilhoff. And I'm Caitlin McCabe for the Wall Street Journal. We'll be back tonight with a new show. Until then, thanks for listening. Want to break free from the AI frenzy and truly transform your marketing with Adobe, the path to ROI is clear and the opportunity is all around you. Let's turn AI's promise into your marketing reality. It starts with Adobe.