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China puts six-month limit on easing of rare-earth export licenses... China is putting a six-month limit on rare-earth export licenses for U.S. automakers and manufacturers, sources familiar with the situation told the Wall Street Journal. That gives Beijing leverage if trade tensions flare up again while adding to uncertainty for American industry. Beijing wants to keep its chokehold on the supply of such critical commodities for future negotiations, according to people who consult with senior Chinese officials.
As part of the trade framework agreed to in London, the people said, the temporary rare-earths licenses Beijing is expected to start issuing immediately will mostly involve elements used in manufacturing electric vehicles, wind turbines, consumer electronics and military equipment.
U.S. consumer inflation rises less than expected... The annual U.S. consumer inflation rate rose for the first time in four months to 2.4% in May but that was lower than the 2.5% increase economists expected. Core inflation, minus food and energy prices, held at 2.8% for a third consecutive month. Economists expect inflation to heat up if the tariffs war doesn’t end.
Food prices rose 2.9% above year-ago in May, with food at home (grocery store) prices up 2.2% and food away from home (restaurant) prices up 3.8%.
The average retail price for a dozen grade A large eggs fell to $4.548, the second consecutive monthly decline and the lowest since December. Prices have dropped about 27% from their March peak, though they remain nearly twice as high as they were a year ago.
Rollins defends Trump’s policies in House testimony... USDA Secretary Brooke Rollins defended the Trump administration’s aggressive overhaul of farm, food and trade policy in testimony before the House Ag Committee Wednesday, declaring that “agriculture does not rest — and neither will we at USDA.”
Appearing before Chair Glenn “GT” Thompson (R-Pa.) and Ranking Member Angie Craig (D-Minn.), Rollins laid out a case for USDA’s performance under her tenure, framing it as a restoration of “farmers first” principles and a rollback of “woke” programs that she claimed were “not putting producers at the center.”
Rollins emphasized trade achievements made since January, criticizing the Biden administration for “four years of inaction” that she argued led to a deteriorated agricultural trade balance. Among the highlighted gains:
- A new U.S./UK trade agreement to expand agricultural exports and reduce non-tariff barriers.
- Market access breakthroughs in Costa Rica, Panama, South Africa and India — USDA-led trade missions to Thailand and Guatemala, and six global trade shows with $282 million in projected exports.
She also announced upcoming trips to India, Vietnam, Japan, Peru and Brazil before Sept. 30 to continue advancing President Trump’s trade priorities.
Rollins spotlighted USDA’s response to foreign animal disease threats, particularly highly pathogenic avian influenza and New World screwworm (NWS). “Food security is national security,” she said.
Rollins praised the House for advancing the “One Big Beautiful Bill Act,” calling it a “once-in-a-generation opportunity” to trim federal spending and reform USDA programs. She revealed that USDA had terminated over $5.5 billion in contracts, grants and DEI-related training programs, including nearly 1,000 employee trainings.
Rollins described sweeping reforms to USDA’s nutrition programs — which account for $400 million in daily spending — including:
- Approving state waivers (Nebraska, Iowa, Indiana) to restrict unhealthy foods in SNAP as part of the “Make America Healthy Again” campaign.
- Reminding states to enforce SNAP work requirements for able-bodied adults without dependents.
- Tightening citizenship and identity verification standards for benefit eligibility.
She cited a Government Accountability Office finding that $10.5 billion in improper SNAP payments were made in fiscal year 2023, blaming “state-level failures to verify identity and citizenship.”
Rollins reviewed USDA’s emergency relief work, including:
- $10 billion in Emergency Commodity Assistance Program (ECAP) payments, which began being issued in March.
- $20 billion in ongoing disaster aid, including $340 million through the Rural Development Disaster Assistance Fund.
- Automatic 2023–2024 livestock drought relief payments tied to Livestock Forage Disaster Program eligibility.
Rollins closed her testimony by asserting the Trump administration’s agricultural vision is rooted in resilience, reform and results. “Our farmers don’t rest, our ranchers don’t rest and neither do we at USDA,” she said. “I’m proud to be at the helm of the People’s Department — and proud to be at the table with President Trump.”
USDA approves more state restrictions on SNAP purchases... USDA has approved waivers for Arkansas, Idaho and Utah allowing them to block Supplemental Nutrition Assistance Program (SNAP) recipients from purchasing certain processed foods such as soda and candy. This move expands on similar restrictions already granted to Indiana, Iowa and Nebraska. The waivers are part of the Trump administration’s Make America Healthy Again initiative, led by Health Secretary Robert F. Kennedy Jr. “It’s about nutrition, and there’s no nutrition in these products,” Kennedy said at a press conference with Rollins. “We shouldn’t be paying for them with taxpayer money.” Additional waiver applications from Colorado, Kansas, West Virginia, Texas, Ohio, Florida and Louisiana are currently under review, Rollins added. USDA also plans to release new federal dietary guidelines this summer, with Rollins promising a strong emphasis on “whole, nutritious foods.” Of note: A tax cut and spending bill passed by the House and now under Senate review would further reduce SNAP enrollment by increasing work requirements and shifting more program costs to the states.
Trump to phase out FEMA after 2025 hurricane season... President Donald Trump announced plans to phase out the Federal Emergency Management Agency (FEMA) after the conclusion of this year’s hurricane season, signaling a major shift in the federal government’s approach to disaster recovery. Trump said the federal government would provide less aid and that future recovery funds would be distributed directly from his office on a case-by-case basis.
“We want to wean off of FEMA, and we want to bring it down to the state level,” Trump said. “A governor should be able to handle it, and frankly, if they can’t handle it, the aftermath, then maybe they shouldn’t be governor.” The decision comes amid hiring freezes, budget reductions and internal restructuring that have left FEMA short-staffed and under-resourced heading into what forecasters expect to be an above-average hurricane season. According to federal and state emergency officials, most states lack the budget capacity and personnel to manage catastrophic disasters without substantial federal assistance. Emergency managers across the country have raised alarm about the move, warning that the withdrawal of federal coordination and support could put lives and infrastructure at greater risk during hurricanes, wildfires and other large-scale emergencies. Several governors, including those from Gulf Coast and Southeastern states, have privately expressed concern that the shift could overwhelm local agencies already stretched thin by recent disasters and inflation-driven cost increases. The administration has not released a formal replacement framework or funding mechanism beyond a general commitment that Trump’s office will “step in where necessary.”
Congressional oversight hearings are expected in the coming weeks.