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Alex Osola
Trump moves to bypass Congress in cutting billions in foreign aid.
Siobhan Hughes
The biggest thing at stake is Congress's power of the purse, which is ascribed in the Constitution. If Congress is not able to stand up now and stop this from happening, the thought is that the game is over. It has totally handed over its power to the White House.
Alex Osola
Plus, bosses are increasingly telling employees to stop their workplace activism or else. And Kraft Heinz nears a breakup, undoing an infamous 10 year old merger. It's Friday, August 29th. I'm Alex Osola 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.
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We're.
Alex Osola
The Trump administration said that it is using an untested Strategy to rescind $4.9 billion in foreign aid without congressional approval. In a letter to congressional leadership sent last night, President Trump said that he wanted to rescind funds from the State Department international assistance programs and the U.S. agency for International Development, using his authority under the Impoundment Control act, which gives the White House power to pause spending only in limited circumstances. For more on this, I'm joined now by Siobhan Hughes, who covers Congress for the Siobhan, what is the controversy here?
Siobhan Hughes
The controversy is essentially that, according to lawmakers, the White House is stepping on Congress's power of the purse. It is Congress that decides what programs to fund. And if the White House turns around and simply says it is not spending congressionally appropriated money, using a fast one to do so, that's walking you right up to this constitutional crisis. There was a legal opinion from the GAO back in the 1970s that said there is a loophole in the Impoundment Control act that you should really consider closing. But a series of court decisions and congressional laws since then have, according to the Government Accountability Office, closed that loophole. And at this point, according to the gao, this is not a legal tactic.
Alex Osola
What have the reactions been on Capitol Hill so far?
Siobhan Hughes
We have seen reactions from many Democrats, but also we have heard from Senate Appropriations Committee Chair Susan Collins, who out and out said that this was an illegal tactic that does reflect the views of other Republicans and this is going to land with a bomb when Congress returns from recess next week.
Alex Osola
Why is Trump using this law to make these cuts?
Siobhan Hughes
President Trump has really been asserting a quite muscular power for the presidency. And this is of a piece with that. The amount is very small. It's worth noting it's aimed at foreign aid, so it will hit in ways that will not affect his constituencies. But it is a big flex of his at a time when Congress is about to come back back. And he also has a practical reason here to message to the conservative wing of his party that he is serious about controlling debt and deficit. The biggest thing at stake is Congress's power of the purse, which is ascribed in the Constitution. If Congress is not able to stand up now and stop this from happening, the thought is that the game is over. It has totally handed over its power to the White House.
Alex Osola
That was Wall Street Journal reporter Siobhan Hughes. Thanks, Siobhan.
Siobhan Hughes
Good to be here, Alex.
Alex Osola
In a separate development, Democratic Senators Elizabeth Warren, Cory Booker and Chuck Schumer are calling on Trump officials to pause their efforts to sell shares of mortgage giants Fannie Mae and Freddie Mac. The senators sent a letter this morning to Federal Housing Finance Agency Director William Pulte demanding he focus on housing affordability instead of matters such as the mortgage fraud allegations against Fed Governor Lisa Cook, which President Trump has cited in his move to fire her. In a statement, Pulte blamed Elizabeth Warren, Jerome Powell and Joe Biden for making housing unaffordable. Meanwhile, a federal Judge in Washington, D.C. signaled today that she will move quickly to rule on whether President Trump acted unlawfully in his attempt to fire Fed governor Lisa Cook. The judge didn't issue any decisions from the bench during the two hour hearing, but asked lawyers for Cook and the Trump administration to set a schedule for the case that will allow her to expeditiously reach the legal merits of Cook's claim.
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Foreign.
Alex Osola
The Personal Consumption Expenditures Price index, the Federal Reserve's preferred inflation measure, rose by 2.6% over the 12 months through July, steady from a month earlier. That's according to new data from the Commerce Department out today. The closely watched core PCE price index, which excludes volatile food and energy categories, was up by 2.9% year over year in July, up from 2.8% in June. Inflation last month did not move closer to the Fed's 2% target, emphasizing the policy challenge the central bank faces as it prepares for a possible interest rate cut in September. Meanwhile, consumer sentiment declined slightly in August. A closely watched index from the University of Michigan fell to 58.2 this month from 61.7 in July, slightly lower than economists expectations. US markets ended the day on a downbeat note. The dow closed down 0.2%. The S&P 500 fell 0.64% and the Nasdaq dropped 1.15%. But this was not enough to derail stocks monthly climb for the whole of August. The S&P 500 was 1.9% higher and the NASDAQ climbed 1.6%. The Dow Jones Industrial Average advanced by 3.2%. We're exclusively reporting that Kraft Heinz is closing in on a plan to break itself up. That's according to people familiar with the matter. The decision would effectively undo much of the work done from the infamous merger of Kraft and Heinz in 2015, a deal orchestrated by Warren Buffett and Brazilian private equity firm 3G Capital Partners. The people said that a transaction could be announced as soon as early next week, though they cautioned that the plans and timing could still change at the last minute. The Wall Street Journal reported in July that Kraft was planning to spin off a large chunk of its grocery business, including many Kraft products, into a new entity that could be valued at as much as $20 billion on its own. That would leave a company housing goods such as sauces and spreads like Heinz namesake ketchup and Dijon mustard brand Grey Poupon. The company is betting that two separate units would be in total worth more than Kraft Heinz is roughly 33 billion doll. Coming up, white bosses have had it with office activists. That's after the break.
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Alex Osola
Increasingly, in corporate America, bosses are telling office activists to put a lid on it or else. This week, Microsoft fired a total of four staffers for protesting against the company's work with the Israeli military. Those are the latest examples of a growing corporate trend in which business leaders are cracking down on political dissent. Lindsay Ellis covers the workplace and careers at the Wall Street Journal. Lindsay, the big question here is why, like, why are bosses cracking down on this?
Lindsay Ellis
So for some context, the sort of ethos of bring your whole self to work that a lot of companies really adopted to some degree, executives felt like that might have gone too far. We're also now grappling with two additional trends. The first is that we're in a political climate in which the White House is taking a very close eye on, on corporate operations and companies are risking backlash from lawmakers, from even some consumers if they seem to be catering too much to the left or quote, unquote, woke forces, including their own employees. The other big factor here is we're in a much different job market for white collar workers now than we were three, four years ago, especially in tech. Workers have lost considerable leverage and that gives executives some flexing power to be able to basically make the rules and enforce them.
Alex Osola
Have the protests themselves had an impact here? Have they changed the work environment?
Lindsay Ellis
The protests have brought considerable attention to companies work in these spaces, be it for Microsoft, their work with the Israeli military, for example. 7ish years ago, there was a walkout at Google on, you know, its own policies particularly connected to reporting sexual harassment. Each of those brought a lot of attention to sort of the internal operations of those companies, which sometimes will stay behind closed doors. Most of the examples that we saw were in the tech sector. I'll say though that some of these flashpoints in which companies are basically tamping down on the feedback that they're getting from employees, be it in an activist environment or a totally non political environment, that's happened elsewhere too. JPMorgan Chase earlier this year had just this influx of employee comments on the return to office mandate and then shut down comments after that point.
Alex Osola
It sounds like one of the kind of side effects is a more adversarial relationship between employees and their bosses. Is this a trend that's likely to continue?
Lindsay Ellis
We've seen that relationship shift in in a number of ways. This summer I had reported on even in job descriptions, employers saying, we're expecting you to work overtime 100% in person, basically making it clear from the outset that this is not for people who want to push boundaries or slack off. This sense of employers having more leverage in this relationship and more control over what happens on the clock, we've seen that emerge in a number of ways.
Alex Osola
That was Journal reporter Lindsay Ellis. Thanks, Lindsay.
Lindsay Ellis
Thank you.
Alex Osola
And finally, we were talking earlier this week about water use in agriculture. Turns out another industry also using a lot of it is tech. Google has put out a new report detailing the energy consumption, emissions and water use of its generative artificial intelligence that users turn to every day. WSJ Pro reporter Clara Hudson told our Tech News Briefing podcast why the company chose to talk about water use in particular.
Clara Hudson
It's interesting that Google did talk about its water use because most of the conversation about AI and energy has been typically focused on the electricity that it needs. But data centers use a huge amount of water to cool down all of the electrical equipment that powers AI. So this report might encourage more companies to talk about their water use. And it could also help people who use chatbots really frequently and weren't even aware that there is this water cost to asking their questions.
Alex Osola
To hear more from Clara, check out today's episode of Tech News Briefing. And that's what's news for this week. Heads up. We'll be taking the weekend off for Labor Day in the US and we'll be back with our regular show on Tuesday morning. Today's show was produced by Anthony Banci and Rodney Davis with supervising producer Michael Cosmides. Michael Lavall wrote our theme music, Aisha El Musleam is our development producer, Chris Insinsley is our deputy editor, and Falana Patterson is the Wall Street Journal's head of news audio. I'm Alex Osola.
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Thanks for listening.
Date: August 29, 2025
Host: Alex Osola, The Wall Street Journal
This episode explores the growing tension inside American workplaces as corporate leaders intensify crackdowns on employee activism, particularly regarding political or social issues. Highlighting the recent firing of Microsoft staff for protesting work with the Israeli military, the conversation with WSJ workplace reporter Lindsay Ellis examines the shifting boundaries between activism and employment, how the job market has empowered bosses, and why company cultures are recalibrating their stance on employee expression.
Recent Example:
Microsoft recently fired four employees for protesting the company’s Israeli military contracts. This is framed as part of a notable new trend across big business.
Context Shift:
“The sort of ethos of bring your whole self to work that a lot of companies really adopted … executives felt like that might have gone too far.”
— Lindsay Ellis (08:21)
Wider Political Influence:
Job Market Dynamics:
“Workers have lost considerable leverage and that gives executives some flexing power to … make the rules and enforce them.”
— Lindsay Ellis (08:21)
Protest Influence:
Crossover to Other Sectors:
Quotes:
"The protests have brought considerable attention to companies' work in these spaces..."
— Lindsay Ellis (09:26)
"JPMorgan Chase earlier this year had just this influx of employee comments on the return to office mandate and then shut down comments after that point."
— Lindsay Ellis (09:55)
More Adversarial Tone:
Managers’ Leverage:
“This sense of employers having more leverage in this relationship and more control over what happens on the clock, we've seen that emerge in a number of ways.”
— Lindsay Ellis (10:39)
On the reason for the crackdown:
“Companies are risking backlash from lawmakers, from even some consumers if they seem to be catering too much to the left or quote, unquote, ‘woke’ forces, including their own employees.”
— Lindsay Ellis (08:36)
On job market power shift:
“This is not for people who want to push boundaries or slack off… Employers having more leverage in this relationship.”
— Lindsay Ellis (10:39)
| Timestamp | Segment Description | |-----------|----------------------------------------------------------------------------| | 07:54 | Host introduces topic of crackdowns on office activism | | 08:21 | Lindsay Ellis explains causes: political climate, job market, company risk | | 09:21 | Discussion of protests’ impacts and company clampdowns | | 10:28 | Exploring new adversarial dynamics and job description changes | | 11:14 | Segment closes, thanking journalist Lindsay Ellis |
This episode spotlights a decisive cultural shift in white-collar workplaces: Companies are drawing clearer lines on political speech and activism among employees. A tough job market has swung power back toward executives, who are now more willing—and able—to enforce policies limiting activism and dissent at work, setting new expectations for the nature of professional conduct.