Minimum Competence

Andrew and Gina Leahey

Minimum Competence is your daily companion for legal news, designed to bring you up to speed on the day’s major legal stories during your commute home. Each episode is short, clear, and informative—just enough to make you minimally competent on the key developments in law, policy, and regulation. Whether you’re a lawyer, law student, journalist, or just legal-curious, you’ll get a smart summary without the fluff. A full transcript of each episode is available via the companion newsletter at www.minimumcomp.com. www.minimumcomp.com

  1. 4 HRS AGO

    Legal News for Weds 3/25 - Baltimore Sues xAI over Deepfakes, Meta $375m Judgement for Teen Harm, Anthropic v. Pentagon and Law Firms Decline to Provide DEI Data

    This Day in Legal History: Triangle Shirtwaist Factory On March 25, 1911, the devastating Triangle Shirtwaist Factory fire unfolded in New York City, marking a turning point in American labor law. A fire broke out on the upper floors of a garment factory, trapping workers inside due to locked exit doors and inadequate safety infrastructure. In total, 146 workers lost their lives, many of them young immigrant women who had limited means of escape. The horrifying conditions quickly became public knowledge and sparked widespread outrage. Investigations revealed that existing labor laws were poorly enforced and insufficient to protect workers in rapidly industrializing cities. In response, New York State created the Factory Investigating Commission to examine workplace conditions and recommend reforms. Over the next few years, the commission helped draft more than 30 new laws addressing fire safety, sanitation, and building access. These legal reforms significantly strengthened the regulatory role of the state in protecting workers. The tragedy also energized the labor movement, giving momentum to unions advocating for safer conditions and fair treatment. Courts and lawmakers increasingly recognized that employers had a responsibility to anticipate and prevent workplace hazards. The legacy of the Triangle fire continues to influence occupational safety standards and legal frameworks governing employer liability today. Baltimore has filed a lawsuit against xAI over its Grok platform, alleging it can create nonconsensual sexualized deepfake images from ordinary photos. The complaint, brought by the city’s mayor and council, claims the technology has been used to generate explicit images of both adults and minors. Officials argue this exposes residents to harassment, emotional harm, and privacy violations. The city also alleges that Grok was marketed as a safe and regulated platform despite lacking meaningful safeguards. According to the filing, users can request the tool to “nudify” images of third parties, including private individuals and children. The complaint estimates that millions of sexualized images were generated shortly after a key feature was launched, including thousands appearing to depict minors. Baltimore claims that even casual users of X may encounter such content without seeking it out. The lawsuit further argues that users’ personal photos could be altered into explicit deepfakes without their consent or knowledge. Baltimore contends this contradicts the companies’ public claims about preventing harmful and illegal content. The city accuses the defendants, including X and SpaceX, of engaging in deceptive and unfair business practices. It is seeking penalties and a court order requiring changes to the platform. Officials emphasized that deepfakes involving minors can cause long-term psychological harm and are difficult to control once circulated. The case is part of a broader wave of scrutiny, as regulators and private plaintiffs in the U.S. and Europe have also raised concerns about Grok’s capabilities. Baltimore Takes XAI To Court Over Grok’s Sexual Deepfakes - Law360 A New Mexico jury has ordered Meta Platforms Inc. to pay $375 million after finding the company misled the public about the risks its platforms pose to teenagers. The verdict followed a six-week trial and focused on claims brought by the state’s attorney general. Jurors concluded that Meta engaged in both unfair practices and unconscionable conduct. They calculated damages based on tens of thousands of violations, applying the maximum statutory penalty for each. The state argued that Meta failed to adequately protect minors from harmful content, including bullying, sexual exploitation, and material related to self-harm. It also claimed the company allowed children under 13 to use its platforms despite official restrictions. According to the plaintiffs, Meta internally recognized these risks but presented a more reassuring picture to the public. Evidence at trial suggested that algorithm-driven content feeds increased compulsive use among teens. The state characterized this design as contributing to addiction and loss of user control. Meta countered that it has invested heavily in safety measures and employs thousands of people to monitor and remove harmful content. The company maintained that it has been transparent about the challenges of moderating online platforms. Despite these arguments, the jury ruled in favor of the state. Meta has said it will appeal the decision. The case is part of a broader wave of litigation across the country targeting social media companies over alleged harm to young users. Meta Owes $375M In NM Trial Over Harm To Teens - Law360 Meta ordered to pay $375 million in New Mexico trial over child exploitation, user safety claims | Reuters A federal judge has expressed skepticism about the Pentagon’s decision to blacklist Anthropic, suggesting it may have been retaliation for the company’s public stance on AI safety. During a hearing in California, the judge indicated the designation appeared intended to “cripple” the company after it raised concerns about military uses of artificial intelligence. Anthropic had refused to allow its AI systems to be used for surveillance or autonomous weapons, citing safety and ethical risks. The U.S. Department of Defense labeled Anthropic a national security supply-chain risk, a designation that can block companies from receiving certain government contracts. Anthropic argues this move exceeded the authority of Pete Hegseth and caused significant financial and reputational harm. The company claims the action was unprecedented and followed a contract dispute with the military. It also alleges it was not given an opportunity to challenge the designation before it was imposed. In its lawsuit, Anthropic contends the government violated its First Amendment rights by retaliating against its views on AI safety. It also raises a Fifth Amendment due process claim, arguing it was denied fair procedures. Government lawyers responded that the designation was justified because Anthropic’s resistance created potential risks to military systems. They argued the Pentagon must ensure that critical technologies remain secure and reliable. The judge has not yet issued a final ruling but is considering whether to temporarily block the designation while the case proceeds. The dispute highlights growing tensions between AI companies and the government over military applications of emerging technologies. US judge says Pentagon’s blacklisting of Anthropic looks like punishment for its views on AI safety | Reuters Nearly 50 U.S. law firms declined to provide demographic data for a major 2025 diversity survey conducted by the National Association for Law Placement, resulting in a significant drop in reported information. The number of participating firms fell from the previous year, reducing the dataset by about 29% and excluding tens of thousands of lawyers. The organization attributed this shift to growing political and regulatory pressure on diversity, equity, and inclusion (DEI) efforts. Under the current administration, federal agencies have increased scrutiny of law firm hiring and diversity practices. The U.S. Equal Employment Opportunity Commission requested detailed hiring data from major firms, while the Federal Trade Commission warned firms that certain DEI-related practices could raise antitrust concerns. In response, many firms have scaled back public references to DEI or altered their policies. Some have also entered agreements with the administration to avoid penalties tied to their diversity initiatives. The reduced participation in the survey may limit transparency for law students and others who rely on the data to evaluate employers. It also affects the ability to track diversity trends across the legal profession. While the available data suggests that racial diversity among associates and summer associates declined in 2025, the smaller dataset makes year-to-year comparisons less reliable. Large firms, which typically report higher diversity levels, were disproportionately absent from the data. Facing DEI pressures, some law firms shield data in latest diversity survey | Reuters This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit www.minimumcomp.com/subscribe

    8 min
  2. 1D AGO

    Legal News for Tues 3/24 - SCOTUS Asylum Case, More Harvard Probes, NCAA vs. DraftKings and Fixing NY's Estate Tax

    This Day in Legal History: Exxon Valdez On March 24, 1989, the oil tanker Exxon Valdez ran aground on Bligh Reef in Alaska’s Prince William Sound, spilling millions of gallons of crude oil into the surrounding waters. The disaster quickly became one of the most devastating environmental crises in United States history, contaminating vast stretches of coastline and severely impacting wildlife and local communities. In the immediate aftermath, attention turned not only to cleanup efforts but also to the legal consequences for Exxon. Federal and state authorities pursued claims under environmental statutes, while thousands of private plaintiffs, including fishermen and Alaska Natives, filed civil lawsuits seeking compensation for economic and ecological harm. The litigation that followed raised complex questions about corporate responsibility and the scope of damages available under maritime law. A central issue was whether punitive damages—intended to punish especially reckless conduct—could be imposed on Exxon for the actions of the ship’s captain. The case eventually reached the U.S. Supreme Court in Exxon Shipping Co. v. Baker, where the Court addressed the proper limits of punitive damages in maritime cases. In a closely watched decision, the Court reduced the punitive damages award, holding that it should be roughly equal to the compensatory damages awarded to plaintiffs. This ruling had lasting implications for how courts evaluate excessive punitive damages and balance punishment with fairness to defendants. Beyond the courtroom, the spill prompted Congress to pass the Oil Pollution Act of 1990, which strengthened federal authority to prevent and respond to oil spills. The Act also expanded liability for companies and created a trust fund to ensure prompt cleanup and compensation. Together, the disaster and its legal aftermath reshaped environmental regulation, corporate accountability, and the development of modern tort law in the United States. The U.S. Supreme Court is preparing to hear arguments on whether the Trump administration can limit the processing of asylum claims at the U.S.-Mexico border. At the center of the case is a policy known as “metering,” which allowed immigration officials to turn away asylum seekers when border facilities were considered too overwhelmed to handle additional applications. This policy had been used in a more informal way starting in 2016 and was formalized during Trump’s first term, before being rescinded by President Joe Biden in 2021. The legal dispute focuses on how to interpret federal law requiring that migrants who “arrive in the United States” be allowed to apply for asylum and be inspected by immigration officials. A key question is whether individuals stopped on the Mexican side of the border can be considered to have “arrived” under the statute. A federal appeals court previously ruled that the government must process asylum seekers even if they are waiting at official border crossings, finding that the metering policy violated the law. The Trump administration disagrees, arguing that “arriving” requires actually entering U.S. territory, not merely approaching it. Officials have indicated they may reinstate the policy if conditions at the border justify doing so. The case, originally brought by an advocacy group, could significantly shape how asylum law is applied at the border. This dispute highlights a broader pattern of ongoing legal battles over immigration policy before the Supreme Court. The Court has recently sided with Trump in several emergency rulings on related issues, including deportation practices and limits on temporary protected status. Additional cases involving birthright citizenship and protections for certain migrant groups are also scheduled for review. US Supreme Court to weigh Trump’s power to limit asylum processing | Reuters The Trump administration has opened two new federal investigations into Harvard University, intensifying its broader scrutiny of elite U.S. schools. The Department of Education’s civil rights office is examining whether Harvard violated federal law by discriminating based on race, color, or national origin. One investigation focuses on whether the university continues to use race in admissions despite the Supreme Court’s 2023 decision ending affirmative action. The second probe looks into allegations of antisemitism on campus, following reports that both Jewish and Muslim students experienced harassment. Harvard has denied wrongdoing, stating it complies with the law and is taking steps to address discrimination while defending its institutional independence. These new investigations add to ongoing legal conflict between the federal government and the university. The administration has already filed lawsuits seeking financial penalties and documents related to admissions practices, while negotiations to resolve the disputes have stalled. The probes are part of a wider campaign by the Trump administration targeting universities over issues such as campus protests, diversity initiatives, and federal funding. Critics argue these actions threaten academic freedom, free speech, and student privacy, while supporters say they are necessary to enforce civil rights laws. Some settlements with other universities, including large financial payments, have raised concerns about setting precedent for costly agreements. Trump administration launches more probes into Harvard | Reuters The National Collegiate Athletic Association has filed a lawsuit against DraftKings, accusing the company of improperly using trademarks tied to its college basketball tournament. The dispute centers on well-known phrases such as “March Madness,” “Final Four,” “Elite Eight,” and “Sweet Sixteen,” which the NCAA argues are being used without authorization in DraftKings’ betting promotions. The lawsuit, filed in federal court, seeks to stop DraftKings from using these terms and also requests monetary damages. The NCAA claims that DraftKings’ marketing falsely suggests a connection or endorsement between the organization and the betting platform, which it says harms its reputation. It also argues that sports betting—especially “prop bets” focused on individual player performance—can threaten the integrity of games and expose student-athletes to harassment or undue pressure. The NCAA has long opposed partnerships with gambling companies for these reasons. DraftKings disputes the claims, arguing that its use of the terms is descriptive and protected under the Constitution, rather than a violation of trademark law. The company maintains it is simply identifying the events on which users can place bets. This case comes amid a surge in sports betting, with billions of dollars expected to be wagered on the tournament, and reflects broader tensions between sports organizations and the gambling industry. NCAA sues to block DraftKings from using ‘March Madness’ trademarks | Reuters In my Bloomberg column this week, I examine New York City Mayor Zohran Mamdani’s proposal to sharply lower the state’s estate tax exemption to $750,000 and the broader issue it raises about how the U.S. tax system treats inherited wealth. I argue that Mamdani is right to highlight a fundamental imbalance: wealth passed down across generations is often taxed more lightly than income earned through work. However, I contend that his current proposal is poorly targeted and risks burdening middle-class households, particularly in a high-cost market like New York, where even modest homes can exceed the proposed threshold. I explain that estate taxes are one of the few tools available to address intergenerational wealth concentration, but they must be carefully designed to avoid unintended consequences. A major flaw in the proposal is its low exemption level, which could capture asset-rich but cash-poor individuals, forcing difficult financial decisions such as selling homes or small businesses. I also highlight a structural problem in New York’s existing estate tax system—the so-called “cliff”—where slightly exceeding the exemption can trigger taxes on the entire estate, creating sharp and arbitrary increases in liability. I note that this cliff encourages costly estate planning strategies that do little to benefit the broader economy while allowing those with resources to minimize their tax burden. Expanding the tax without fixing this issue would likely worsen these inefficiencies and inequities. While critics argue that higher estate taxes could drive wealthy residents out of the state, I suggest that the real issue is not whether to tax inherited wealth, but how to do so effectively. I conclude that a better approach would involve lowering the exemption more moderately, eliminating the estate tax cliff, and focusing higher tax rates on very large estates in the tens of millions. I also suggest policymakers consider special rules for illiquid assets like primary residences and closely held businesses. Overall, I argue that estate taxes can play a meaningful role in reducing dynastic wealth—but only if they are structured in a way that is fair, predictable, and politically sustainable. Mamdani’s NY Estate Tax Exemption Should Target Dynastic Wealth This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit www.minimumcomp.com/subscribe

    8 min
  3. 2D AGO

    Legal News for Mon 3/23 - Musk Securities Fraud, WH Push to Override State AI Regulations and SCOTUS Fight Over TN Mail-in Ballots

    This Day in Legal History: ACA Signed into Law On March 23, 2010, President Barack Obama signed into law the Patient Protection and Affordable Care Act, marking a transformative moment in American legal and social policy. The statute, widely known as the Affordable Care Act (ACA), sought to expand access to health insurance and reduce overall healthcare costs. Central to the law was the individual mandate, which required most Americans to obtain health insurance or face a financial penalty. The ACA also significantly expanded Medicaid eligibility, allowing millions of low-income individuals to gain coverage. Another key provision prohibited insurance companies from denying coverage based on preexisting conditions, reshaping longstanding industry practices. Almost immediately after its passage, the law faced a wave of legal challenges from states, private parties, and advocacy groups. Critics argued that Congress had exceeded its authority under the Commerce Clause by compelling individuals to engage in commerce. The dispute reached the Supreme Court in the landmark case of NFIB v. Sebelius. In a closely divided decision, the Court held that the individual mandate could not be sustained under the Commerce Clause. However, Chief Justice John Roberts authored the controlling opinion that upheld the mandate as a valid exercise of Congress’s taxing power. The Court also addressed the ACA’s Medicaid expansion, ruling that Congress could not coerce states into expanding coverage by threatening existing Medicaid funding. This aspect of the decision reinforced limits on federal power under the Spending Clause and preserved a degree of state sovereignty. The ACA continued to generate litigation in subsequent years, including challenges to its subsidy structure and individual mandate enforcement. Despite these legal battles, the law remains a central feature of the U.S. healthcare system. Its passage and judicial review reshaped modern constitutional interpretation, particularly regarding the balance between federal authority and individual liberty. A California federal jury found that Elon Musk committed securities fraud in connection with his $44 billion attempt to acquire Twitter. After roughly 20 hours of deliberation, the jury concluded that two of Musk’s May 2022 tweets misled investors about the status of the deal and the prevalence of fake or spam accounts on the platform. In particular, his statement that the deal was “temporarily on hold” while awaiting bot data was deemed materially misleading. The jury also found liability for a later tweet suggesting bots made up at least 20% of users and that the deal could not proceed without proof. However, jurors rejected the broader claim that Musk engaged in an overall scheme to defraud investors. They also declined to find liability for statements he made at a tech conference, determining those remarks were not proven to be fraudulent. The class of affected investors included those who traded Twitter stock or related options between May and October 2022 and claimed they suffered losses due to artificially depressed prices. While the jury did not calculate a final damages figure, plaintiffs’ counsel estimated potential damages at about $2.6 billion. The verdict form instead required jurors to assess damages across 98 separate trading days, meaning total compensation will depend on individual trading activity. Plaintiffs’ attorneys characterized the decision as a win for market integrity, emphasizing that even high-profile figures must comply with securities laws. Musk’s legal team, by contrast, downplayed the outcome and indicated plans to appeal. The case featured testimony from Twitter executives, deal advisers, and co-founder Jack Dorsey, as well as disputes over whether Twitter accurately reported bot activity. Jury Says Musk Defrauded Twitter Investors In $44B Buyout - Law360 The White House, under Donald Trump, released a legislative framework urging Congress to override state-level artificial intelligence regulations in favor of a single national standard. The administration argues that a patchwork of state laws creates unnecessary obstacles for innovation and weakens the United States’ ability to compete globally in AI development. At the same time, the proposal preserves certain areas of state authority, including laws addressing fraud, consumer protection, child safety, zoning, and state government use of AI. The framework also addresses intellectual property concerns, recommending that courts continue to decide whether training AI systems on copyrighted material violates the law. It suggests Congress consider mechanisms that allow creators to collectively negotiate compensation from AI companies without triggering antitrust issues. Additionally, it calls for federal protections against unauthorized AI-generated replicas of individuals’ likeness, voice, or identity, while allowing exceptions for news and satire. Another key focus is infrastructure, with proposals to prevent rising electricity costs from being passed on to consumers as AI data centers expand. The plan encourages faster federal permitting and supports alternative energy solutions to power AI development. It also includes provisions aimed at preventing government pressure on tech companies to censor speech and ensuring that federal data can be used to train AI systems. The proposal has drawn mixed reactions. Industry groups and several Republican lawmakers praised the approach as promoting innovation through lighter regulation. In contrast, consumer advocates and Democratic lawmakers criticized it as favoring large technology companies while removing important state-level protections. Some Democrats have introduced legislation to block the initiative and preserve states’ authority to regulate AI. White House Pushes Congress To Override State AI Laws - Law360 UK The U.S. Supreme Court is hearing a case involving Mississippi’s law that allows certain mail-in ballots to be counted if they are postmarked by Election Day but arrive up to five business days later. The dispute stems from a challenge brought by Republican groups, including the Republican National Committee, which argue that the law conflicts with federal election statutes. The Trump administration is supporting this challenge, continuing its broader push to restrict mail-in voting. Mississippi enacted the rule in 2020, during the COVID-19 pandemic, with bipartisan support. It applies to limited categories of voters, such as the elderly, disabled individuals, and those temporarily away from home. However, in 2024, the U.S. Court of Appeals for the Fifth Circuit ruled that the law likely violates federal law, which it interpreted as requiring ballots to be both cast and received by Election Day. The court concluded that states cannot extend the deadline for receiving ballots beyond that date. The Supreme Court is now reviewing Mississippi’s appeal of that decision, with potentially broad implications. Roughly 30 states and Washington, D.C. have similar policies that count ballots arriving after Election Day if they were mailed on time. A ruling against Mississippi could therefore force significant changes to voting procedures nationwide and limit the use of mail-in ballots. The case also reflects ongoing political disputes over election integrity and access to voting. Republicans have raised concerns about the security of mail-in ballots, while critics argue that restrictions could reduce voter participation. The outcome of this case may clarify how federal election law interacts with state authority over voting procedures. US Supreme Court weighs Republican bid to limit mail-in voting | Reuters This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit www.minimumcomp.com/subscribe

    7 min
  4. 5D AGO

    Legal News for Fri 3/20 - Court Blocks HHS Anti-trans Care Move, States Sue over Media Merger, VAT Outsourcing in the Netherlands and Rulemaking Dynamics Revealed

    We’ve launched a new project: FRTracker.app. It’s a platform designed to help track what’s happening across the regulatory state—rulemakings, agency actions, and the steady flow of activity coming out of administrative agencies. The goal is straightforward: make it easier to see what’s changing, when it’s changing, and why it matters. If you’re an attorney, journalist, or researcher working in this space, we’d encourage you to take a look. And as always, feedback is not just welcome—it’s essential. The website is FRTracker.app and we look forward to hearing from you or, if all is in order, your finding a way to make use of it in your practice area or work. Thanks so much! This Day in Legal History: First Official Meeting of the US Republican Party On March 20, 1854, the newly formed Republican Party held its first official meeting in Ripon, Wisconsin, marking a pivotal moment in American legal and political history. The party emerged in direct response to the passage of the Kansas–Nebraska Act, a controversial law that allowed new territories to decide the legality of slavery through popular sovereignty. This legislative shift effectively repealed the Missouri Compromise, which had previously set geographic limits on slavery’s expansion. The outrage among anti-slavery activists, lawyers, and former members of existing parties led to a rapid political realignment. Legal debates at the time centered on Congress’s authority over the territories and whether slavery could be restricted as a matter of federal law. These were not abstract questions—they went directly to the structure of the Constitution and the balance of power between federal authority and local control. The formation of the Republican Party reflected a growing belief that existing legal frameworks had failed to contain the spread of slavery. Within a few years, the party would become a major political force, culminating in the election of Abraham Lincoln in 1860. By his reelection campaign in 1864, however, Lincoln ran under the banner of the National Union Party, a wartime coalition of Republicans and pro-Union Democrats. That shift did not necessarily reflect a rejection of the Republican Party itself, but it did signal unease with factionalism and the limits of party identity during a constitutional crisis. The rebranding was a strategic and legal-political move: to broaden support for the Union, stabilize governance, and frame the election as a referendum on national survival rather than partisan ideology. The legal disputes surrounding slavery, territorial governance, and federal authority would ultimately be resolved not just through legislation or court decisions, but through war and constitutional amendment. The Thirteenth Amendment to the United States Constitution would later eliminate slavery nationwide, fundamentally reshaping American law. What began as a meeting in a small Wisconsin town became a turning point in the legal history of the United States, illustrating how statutory change can rapidly destabilize existing legal and political orders. A federal judge in Oregon ruled that the Department of Health and Human Services cannot enforce a policy aimed at restricting gender-affirming care for minors, siding with 21 states and the District of Columbia. The challenged policy, issued by HHS Secretary Robert F. Kennedy Jr., declared such care unsafe and ineffective and warned that providers could lose access to Medicare and Medicaid funding. The states argued the policy was unlawful because it bypassed required rulemaking procedures and interfered with their authority to regulate medical practice. Judge Mustafa T. Kasubhai granted summary judgment to the states and rejected the federal government’s attempt to dismiss the case. While the court has not yet issued a full written opinion, it signaled that the policy will be formally invalidated, with further briefing ordered on the scope of relief. The states emphasized that the policy placed healthcare providers in a difficult position by threatening funding while conflicting with state laws that protect access to gender-affirming care. The federal government argued the policy was merely advisory and not subject to judicial review, but the court was not persuaded. State attorneys general described the ruling as a rejection of federal overreach and an affirmation that such healthcare remains lawful. The decision preserves access to care for transgender minors in the plaintiff states, at least for now. This case turns in part on whether the HHS policy qualifies as a “final agency action” that must go through notice-and-comment rulemaking under the APA. The states argued that even if labeled as guidance, the policy had real legal consequences—namely, threatening loss of federal funding—making it effectively binding. Courts often look beyond labels to the practical effect of agency actions, and here the judge appeared to agree that the policy could not avoid APA requirements simply by being framed as a statement rather than a formal rule. This issue, central to the dispute, frequently arises in challenges to modern administrative action. HHS Can’t Block Trans Care Under Kennedy Edict, Court Says - Law360 A coalition of eight states has sued to block Nexstar Media Group’s $6.2 billion acquisition of Tegna, even after the deal received approval from both the Department of Justice and the Federal Communications Commission. The states argue the merger would create excessive concentration in local television markets, giving the combined company control over stations reaching roughly 80% of U.S. households. They contend this market power would allow Nexstar to raise prices for cable and satellite providers and reduce competition for broadcast content. The lawsuit also raises concerns about the impact on local journalism, with state enforcers warning that consolidation could lead to newsroom cuts and less coverage of local issues. DirecTV filed a parallel challenge, similarly arguing that the deal would increase costs, reduce competition, and lead to more frequent service disruptions. Despite these objections, the FCC approved the merger with conditions, including the divestiture of several stations and commitments related to pricing and local news. Nexstar defended the deal as necessary to sustain local broadcasting and improve its ability to deliver journalism at scale. The case highlights a growing divide between federal regulators and state enforcers, with states increasingly willing to challenge mergers even after federal clearance. It also reflects broader concerns about consolidation in media markets and its downstream effects on both pricing and the availability of local news. States Sue To Block $6.2B Tegna Acquisition Despite Feds’ OK - Law360 In this piece I wrote for Forbes, I look at the Netherlands’ decision to outsource the core infrastructure of its value-added tax (VAT) system to the U.S.-based company FAST Enterprises. This is not just a software contract—FAST is responsible for operating, maintaining, and running key components of the Dutch VAT system remotely. Given that VAT generates roughly €1.5 billion per week in revenue, the arrangement creates a situation where a critical stream of government funding depends, at least in part, on a system controlled outside the country. I explain that this introduces a new kind of risk: technical dependency can quickly become financial dependency. If VAT collection is disrupted for any reason, the government cannot simply pause operations—it must borrow, and markets may react immediately. That turns what appears to be an IT issue into a fiscal and potentially geopolitical one. The broader argument is that this reflects a deeper shift in how states operate. What looks like routine modernization is actually a trade-off between efficiency and control. By adopting what I describe as “VAT-as-a-service,” the Netherlands has effectively externalized part of its tax infrastructure, raising questions about who ultimately controls a core sovereign function. I also place this in a geopolitical context, noting that reliance on foreign-operated infrastructure can create indirect leverage, even without any explicit “off switch.” The concern is less about intentional disruption and more about exposure—legal, regulatory, or systemic—that comes with cross-border dependence. Finally, I argue that this is not just a Dutch issue but a European trend, as governments increasingly rely on private and often non-domestic vendors for critical systems. The key takeaway is that tax infrastructure decisions should be evaluated not just on cost and efficiency, but on sovereignty, jurisdiction, and contingency planning. Dutch VAT-As-A-Service And The Quiet Outsourcing Of Tax Sovereignty Apologies for a double dose of me today – I wrote a piece for Yale’s Journal of Regulation Notice & Comment blog examining how regulatory obligations change during notice-and-comment rulemaking. The core argument is that most analyses look at the wrong unit—entire rules—when the real substance of regulation lies in the individual obligations imposed on regulated parties. By breaking rules down into sentence-level commands, the analysis tracks what actually happens to those obligations from proposal to final rule. The data shows that only about one-third of proposed obligations survive into final rules in a recognizable form, while most are eliminated altogether. Agencies are far more likely to remove obligations than to revise them, suggesting that rulemaking operates less like incremental editing and more like a filtering process. At the same time, final rules frequently introduce entirely new obligations that were not present in the proposal. When obligations do carry over, their core legal force—whether something is required, prohibited, or permitted—almost never changes. This indicates that survival tends t

    10 min
  5. 6D AGO

    Legal News for Thurs 3/19 - FCA Appeal in J&J Case, AI Copyright Fights, and an Asylum Case in Minnesota

    This Day in Legal History: Poll Tax On March 19, 1962, Congress approved a constitutional amendment to abolish the poll tax in federal elections, a practice that had long been used to suppress voter participation. The poll tax required citizens to pay a fee before casting a ballot, which disproportionately affected low-income individuals, especially African Americans in the South. By removing this financial barrier, Congress took a clear step toward expanding access to the democratic process. The amendment was later ratified as the Twenty-Fourth Amendment, cementing the principle that voting should not depend on one’s ability to pay. This change reflected the growing influence of the civil rights movement, which pushed lawmakers to confront systemic inequality in voting laws. It also signaled a broader shift toward recognizing voting as a fundamental right rather than a conditional privilege. The legal reasoning behind abolishing the poll tax focused on fairness and equal protection, emphasizing that economic status should not determine political participation. Courts and lawmakers increasingly viewed such barriers as incompatible with democratic ideals. This moment in legal history continues to shape debates about what constitutes an undue burden on voters. Today, discussions around the SAVE Act, which proposes strict voter identification requirements, have raised similar questions about access and eligibility. Supporters argue that identification rules protect election integrity, despite there being no evidence of widespread voter fraud. Critics warn that they may disproportionately affect certain groups, including those with limited access to documentation. The comparison to the poll tax debate lies in how both policies raise concerns about whether procedural requirements might exclude eligible voters. While the mechanisms differ—one being a direct financial cost and the other an administrative requirement—the underlying legal tension remains similar. Lawmakers and courts must again weigh the balance between safeguarding elections and ensuring that access to voting remains broad and equitable. The Third Circuit heard arguments in a high-stakes appeal involving a $1.6 billion False Claims Act (FCA) verdict against Johnson & Johnson and broader challenges to the law’s constitutionality. The FCA is a federal law that allows the government to pursue individuals or companies that defraud federal programs. It also lets private whistleblowers file lawsuits on the government’s behalf and share in any financial recovery. Judges appeared reluctant to dismantle the FCA’s whistleblower, or qui tam, mechanism, though they engaged seriously with arguments questioning its validity. Much of the discussion focused on whether private individuals wield too much power by bringing fraud claims on behalf of the government. An attorney for business groups argued that this structure improperly grants executive authority to non-government actors, while judges pushed back by pointing to the long historical use of such actions. A central issue in the case was “materiality,” meaning whether the alleged misconduct actually influenced the government’s decision to pay claims. J&J argued there was no proof that its actions affected payment decisions, but the judges suggested that such determinations are typically left to juries. They also questioned whether J&J had properly preserved certain legal arguments for appeal. The Department of Justice disputed J&J’s interpretation of its position, emphasizing that the evidence could still support liability under the FCA. The panel also examined the role of evidence and jury instructions, particularly how jurors were told to evaluate whether improper marketing led to false claims. J&J criticized the “substantial factor” standard used at trial, arguing it was unclear and insufficient. In response, the whistleblowers’ counsel maintained that J&J was seeking a stricter standard than the law requires. Judges appeared to wrestle with whether the instructions properly guided the jury without overcomplicating the burden of proof. Overall, the arguments revealed judicial skepticism toward sweeping constitutional attacks on the FCA, alongside concern about how the specific trial was conducted. The case highlights ongoing legal debates over the balance between encouraging whistleblowers and ensuring fair limits on liability. Key Details As 3rd Circ. Ponders FCA’s Fate, $1.6B J&J Fine - Law360 Music company BMG has sued AI firm Anthropic, alleging it used copyrighted song lyrics from artists like Bruno Mars, the Rolling Stones, and Ariana Grande to train its Claude chatbot without permission. The lawsuit claims this involved copying hundreds of protected works, possibly sourced from unauthorized platforms, and seeks significant damages under U.S. copyright law. The case is part of a broader wave of lawsuits against AI companies over training data practices, including a similar ongoing suit by other music publishers and a prior $1.5 billion settlement Anthropic reached with authors. While BMG argues this use is unlawful infringement, AI companies like Anthropic maintain that training models on such material qualifies as fair use because it transforms the content. BMG sues Anthropic for using Bruno Mars, Rolling Stones lyrics in AI training | Reuters A Second Circuit judge sharply questioned OpenAI’s position in a copyright dispute with Raw Story, expressing frustration that the company’s lawyer could not explain whether its AI system copied articles or removed copyright management information (CMI). The judge suggested that this lack of clarity weakened OpenAI’s argument, especially at an early stage without full discovery. OpenAI argued the case should be dismissed because the plaintiffs failed to show concrete harm or properly allege infringement, emphasizing that removing CMI alone does not violate a protected property right. The company also claimed the complaint relied too heavily on speculation rather than specific facts about how its systems operate. However, the judges appeared skeptical, noting that factual questions about copying and CMI removal might need further development. Raw Story countered that copying articles without CMI is itself a recognized legal injury and fits within longstanding copyright protections. The publishers also argued that OpenAI knowingly removed identifying information in a way that could enable infringement, which is prohibited under the DMCA. The panel ultimately took the case under advisement, leaving unresolved key questions about how copyright law applies to AI systems. 2nd Circ. Judge Unimpressed By OpenAI’s IP Suit Stance - Law360 An immigration judge has ended the asylum claims of five-year-old Liam Conejo Ramos and his family after their detention during a large immigration operation in Minnesota. Liam and his father were taken into custody in January and held for about 10 days in a Texas facility before being released. Public attention grew after a widely shared image showed the child standing outside his home while federal agents were nearby. The ruling was issued by U.S. Immigration Judge John Burns, and the family’s attorney has said they will appeal the decision, a process that could take a long time. Community members, including Liam’s school district, expressed sadness and concern over the outcome while acknowledging that the legal process is ongoing. The case is tied to “Operation Metro Surge,” a large-scale enforcement effort that brought thousands of immigration agents to Minnesota. The operation led to widespread detentions and significant backlash, especially after two U.S. citizens were fatally shot during related protests or observations. The federal government later ended the operation, but local communities continue to deal with its emotional and economic effects. Advocates and officials have emphasized the broader human impact of the raid, particularly on children and families whose lives were disrupted. Liam’s case has become a focal point in discussions about immigration enforcement and its consequences. Judge ends asylum claim of Minnesotan boy detained by ICE, report says | Reuters This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit www.minimumcomp.com/subscribe

    8 min
  6. MAR 18

    Legal News for Weds 3/18 - Musk's Fraud Trial, Anthropic Blacklist Fight, Lycra's Chapter 11 Filing

    This Day in Legal History: Missouri v. Holland On March 18, 1922, the U.S. Supreme Court issued a landmark decision in Missouri v. Holland, clarifying the scope of federal treaty power. The case arose when the state of Missouri challenged a federal statute that implemented a treaty between the United States and Great Britain to protect migratory birds. Missouri argued that the regulation of wildlife fell within the state’s reserved powers under the Tenth Amendment. The state maintained that the federal government could not use a treaty to expand its authority into areas traditionally controlled by the states. The Supreme Court rejected this argument and upheld the federal law. Writing for the Court, Oliver Wendell Holmes Jr.emphasized that the Constitution grants the federal government the power to make treaties, and that these treaties can address matters of national and international concern. He reasoned that migratory birds, by their nature, cross state and national boundaries, making them an appropriate subject for international agreement. The Court concluded that when a treaty is validly made, Congress may pass laws necessary to implement it, even if those laws regulate areas otherwise left to the states. This decision reinforced the supremacy of federal treaties over conflicting state laws under the Supremacy Clause. It also signaled a broader understanding of federal power in foreign affairs, particularly when international cooperation is required. The ruling has had lasting implications for the balance between state and federal authority, especially in cases involving environmental regulation and international commitments. A California federal jury is weighing whether Elon Musk committed securities fraud through his public statements about Twitter during his 2022 acquisition attempt. Investors claim Musk deliberately made misleading statements about the level of spam and fake accounts to drive down Twitter’s stock price after agreeing to buy the company. According to their lawyers, these statements were part of a calculated plan to gain leverage to renegotiate or exit the $44 billion deal. They argue Musk had no evidence for his claims and point to internal communications suggesting he was already considering a lower price. The investors also emphasize that Musk had waived due diligence rights, making his public claim that the deal was “on hold” misleading. Musk’s legal team counters that there is no proof of fraud and that expressing concerns about bots does not amount to illegal conduct. They argue Musk genuinely believed Twitter’s spam numbers were inaccurate and was frustrated by the company’s refusal to provide data to verify them. His lawyer also stressed that motive alone is not enough to establish fraudulent intent. Additionally, Musk ultimately declined an opportunity to renegotiate the deal at a lower price, which his attorneys say undermines the claim of a scheme. They also note that Musk reaffirmed his commitment to the deal shortly after his controversial tweet, which they argue is inconsistent with an effort to manipulate the market. The case centers on whether Musk’s statements were intentionally deceptive or simply careless. Investors allege they suffered losses after Twitter’s stock dropped following Musk’s tweets. The jury must now decide whether his conduct meets the legal standard for securities fraud. Were Musk’s Tweets ‘Deliberate’ Or ‘Stupid’? Jury To Decide - Law360 The Trump administration is defending the Pentagon’s decision to blacklist Anthropic in a federal court dispute, arguing the move was lawful and tied to national security concerns. The designation, made by Defense Secretary Pete Hegseth, labeled the company a supply chain risk after it refused to remove safeguards limiting the use of its AI for autonomous weapons or domestic surveillance. Government lawyers claim Anthropic is unlikely to succeed in its lawsuit, rejecting the company’s argument that the action violated its First Amendment rights. They argue the dispute is about conduct—specifically contract and policy disagreements—not protected speech. According to the administration, no restrictions were placed on Anthropic’s ability to express its views, only on its eligibility for government contracts. Anthropic has challenged the designation in court, calling it unlawful and harmful to its business, and is seeking to block the decision while the case proceeds. The company maintains that its safety restrictions reflect responsible AI practices and do not threaten national security. It also argues that the government failed to follow proper procedures and violated its due process rights. The blacklisting, supported by Donald Trump, could limit Anthropic’s access to defense contracts and potentially lead to significant financial losses. The dispute follows failed negotiations between the company and the Pentagon over acceptable uses of its technology. Anthropic is pursuing a separate legal challenge in another court to contest a broader designation that could expand the ban across the federal government. Trump administration defends Anthropic blacklisting in US court | Reuters The Lycra Company has filed for Chapter 11 bankruptcy in Texas as part of a plan to reduce about $1.2 billion in debt and transfer ownership to its senior lenders. A bankruptcy judge granted interim approval for the company to access $50 million in debtor-in-possession (DIP) financing, rejecting objections from a lower-level creditor who argued the lenders had too much control over the restructuring. The company entered bankruptcy with roughly $1.5 billion in total debt and a prearranged plan supported by most major lenders, who have agreed to vote in favor of the restructuring. The plan gives Lycra 45 days to confirm its reorganization and would convert different layers of debt into equity or warrants in the reorganized company. One creditor, Castleknight Master Fund, objected, claiming the same lenders were playing multiple roles—DIP financiers, major creditors, and future owners—giving them an unfair advantage. The court, however, found this overlap common in large restructurings and allowed the financing to proceed, noting objections can be raised again later. Lycra’s financial struggles stem from declining earnings, increased competition, inflation, and prior debt tied to earlier ownership changes. The company has also faced legal risks related to past transactions. Despite these issues, Lycra continues to operate globally, selling its products in more than 80 countries. Spandex Maker Lycra Files Ch. 11 To Slash $1.2B Debt - Law360 This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit www.minimumcomp.com/subscribe

    6 min
  7. MAR 17

    Legal News for Tues 3/17 - Fed Courts Halt Vaccine Schedule Change, Fight Over WH Ballroom Continues, Breakdown of "SAVE America" Act, and CA Luxury Car Sales Tax Loopholes

    This Day in Legal History: NAACP v. Alabama On March 17, 1958, the Supreme Court of the United States issued a landmark decision in NAACP v. Alabama, a case that reshaped constitutional protections for civil rights organizations. The dispute arose when the state of Alabama sought to compel the NAACP to disclose its membership lists as part of a legal proceeding. At the time, the NAACP was deeply involved in challenging segregation laws across the South, making its members vulnerable to retaliation and harassment. Alabama argued that it had the authority to demand these records under its corporate registration laws. The NAACP refused, asserting that disclosure would violate its members’ constitutional rights. The case eventually reached the Supreme Court, where the central question became whether forced disclosure infringed on the freedom of association. Writing for a unanimous Court, Justice John Marshall Harlan II emphasized that privacy in group membership was essential to preserving lawful association. The Court held that Alabama’s demand posed a substantial restraint on the ability of individuals to organize and advocate collectively. It recognized that exposure of members’ identities could lead to economic reprisal, loss of employment, and even physical danger. Importantly, the Court grounded its reasoning in the Due Process Clause of the Fourteenth Amendment, incorporating First Amendment protections against state action. This marked a significant step in expanding constitutional safeguards for civil liberties at the state level. The ruling made clear that states could not use indirect means to suppress lawful advocacy groups. It also strengthened the legal foundation for future civil rights litigation during a critical period in American history. The decision in NAACP v. Alabama remains a cornerstone of First Amendment jurisprudence. It continues to influence cases involving anonymity, privacy, and the right to organize without undue government interference. A federal judge in Massachusetts has blocked the federal government’s revised childhood vaccine schedule and paused related policy actions, finding the changes likely unlawful. The court concluded that the Department of Health and Human Services departed from longstanding, science-based procedures when issuing the new recommendations. Central to the ruling was the government’s apparent sidestepping of the Advisory Committee on Immunization Practices (ACIP), a key expert body that has historically guided vaccine policy. The judge rejected the argument that the health secretary has near-total discretion over vaccine decisions, emphasizing that such authority is still constrained by statutory and procedural requirements. He underscored that courts can review agency actions, particularly when they appear to ignore scientific standards or established processes. The opinion was especially critical of the administration’s position that its vaccine guidance was not subject to judicial review, noting that the recommendations carry real legal and practical consequences. The revised schedule itself had scaled back universal recommendations for several vaccines, instead limiting them to certain groups or requiring consultation with a doctor. The court found that these changes could significantly affect liability protections for healthcare providers and insurance coverage obligations. The ruling also raised concerns about potential violations of the Federal Advisory Committee Act after the abrupt dismissal and replacement of ACIP members, many of whom reportedly lacked relevant expertise. While the court did not cancel upcoming committee meetings, it halted the appointments of new members and froze future decisions tied to the disputed process. The decision represents a significant check on the administration’s approach to public health policymaking, reinforcing that agencies must follow established legal frameworks and rely on qualified expertise. An appeal is expected, and related litigation is already pending in other courts. HHS’ Childhood Vaccine Policy Changes Put On Ice - Law360 US judge upends Kennedy’s overhaul of childhood vaccine policies | Reuters A federal judge in Washington, D.C., is set to hear arguments over whether to halt construction of a $400 million ballroom project at the White House. The dispute centers on a lawsuit brought by preservationists, who argue that the project—built on the site of the demolished East Wing—was launched without proper legal authorization. They are seeking a preliminary injunction to stop construction while the case proceeds. The National Trust for Historic Preservation claims that neither the president nor the National Park Service has the authority to approve such a major structural change without explicit approval from Congress. The group argues that past practice shows Congress typically authorizes significant developments on federal land in Washington. The Trump administration, however, maintains that the project is lawful and does not require specific congressional approval. Government lawyers argue that the ballroom will improve infrastructure, enhance security, and help preserve the main White House building by shifting large events elsewhere. They also contend that the plaintiffs have not met the high legal standard required for an injunction. A federal judge previously denied an earlier request to stop construction, finding the initial legal arguments insufficient. The new hearing will consider revised claims focused more directly on presidential authority and statutory limits. At this stage, the case turns on whether the plaintiffs can show both a likelihood of success on the merits and that immediate harm justifies blocking the project before a final decision is reached. US judge to weigh new bid to halt Trump’s $400 million ballroom project | Reuters You may have heard about the SAVE America Act, and given the attention it’s received, it’s helpful to clearly lay out what the bill actually does. The SAVE America Act would make significant changes to federal voter registration and election procedures, primarily by requiring proof of U.S. citizenship. The bill amends the National Voter Registration Act to require applicants to present documentary evidence—such as a passport, birth certificate, or certain government-issued identification—before registering to vote in federal elections. It also requires that this proof generally be provided in person, even when registering by mail, though states may create alternative processes for applicants who cannot readily produce documentation. The legislation directs states to verify citizenship status during voter registration and to establish systems for identifying and removing non-citizens from voter rolls. It encourages the use of federal and state databases, including systems maintained by the Department of Homeland Security and the Social Security Administration, to confirm eligibility. Federal agencies are required to respond quickly to state requests for citizenship verification and to share relevant data across agencies. The bill further mandates that voters present a qualifying photo ID when casting a ballot in federal elections. For in-person voting, the ID must be shown at the polling place, while absentee voters must submit copies of identification with their ballots. Acceptable IDs must generally include both a photograph and an indication of U.S. citizenship, though supplemental documentation may be used in some cases. The bill would effectively bring all the convenience and ease of a trip to the DMV to the ballot box. In addition, the legislation expands enforcement mechanisms. It creates potential criminal liability for election officials who knowingly register individuals without proof of citizenship and allows private lawsuits against officials who fail to enforce the requirements. It also requires states to take ongoing steps to ensure that only eligible citizens remain registered, including removing individuals identified as non-citizens. The bill includes provisions addressing discrepancies in documentation and requires election officials to document the basis for registering individuals who lack standard proof. It also preserves the use of provisional ballots, allowing individuals to vote while their eligibility is later verified. Overall, the measure shifts the federal framework toward stricter documentation, verification, and enforcement standards tied to voter eligibility in federal elections. What is in Trump’s bill that requires proof of citizenship to vote? | Reuters Text - H.R.7296 - 119th Congress (2025-2026): SAVE America Act This week, my Bloomberg Tax column examines California’s recent crackdown on luxury vehicles registered in Montana to avoid sales tax. The enforcement actions reveal a deeper flaw in California’s system: it relies heavily on formal delivery paperwork rather than the actual use of the vehicle. Buyers have been able to exploit this by creating the appearance of out-of-state delivery through inexpensive documentation, even when the cars never leave California. Prosecutors allege that some schemes were remarkably simple, involving little more than fabricated shipping records. The current rule allows residents to avoid sales tax if a vehicle is delivered and kept out of state for 12 months, a policy originally designed for legitimate interstate purchases. However, it has unintentionally created a market for services that help buyers simulate compliance. Entity formation companies, transporters, and storage providers all play a role in generating paperwork that masks in-state use. This has made tax avoidance both accessible and predictable. California has responded with audits, criminal prosecutions, and surveillance tools like license plate readers, but these efforts address symptoms rather than the underlying design problem. A system built on easily manipulated documentatio

    10 min
  8. MAR 16

    Legal News for Mon 3/16 - "Made in America" and the FTC, Maduro Fight Over Defense Funding, Judge Blocks Jerome Powell Subpoenas and Who Will Repair the Courthouse?

    This Day in Legal History: Mississippi Ratifies 13th Amendment On March 16, 1995, Mississippi took an unusual step in American constitutional history by formally ratifying the Thirteenth Amendment to the United States Constitution. The amendment, which abolished slavery and involuntary servitude except as punishment for a crime, had already become part of the Constitution in 1865 after the required number of states approved it. Mississippi, however, had originally rejected the amendment during the Reconstruction era. For more than a century afterward, the state never revisited the issue, leaving it as one of the few states that had not formally ratified the amendment. Although Mississippi’s approval in 1995 had no legal effect on the validity of the amendment, it carried symbolic weight. Lawmakers described the vote as an effort to acknowledge and correct a lingering historical omission. The action highlighted how the constitutional amendment process operates: once three-fourths of the states ratify an amendment, it becomes law for the entire nation, regardless of whether every state agrees. In other words, Mississippi had been bound by the Thirteenth Amendment for 130 years before its legislature finally endorsed it. The event also reflected a broader trend in which states reconsider and symbolically ratify long-standing constitutional amendments they once opposed. Such actions often serve educational or reconciliatory purposes rather than legal ones. Mississippi’s vote functioned as a public acknowledgment of the amendment’s moral and constitutional importance. The late ratification became a reminder that constitutional history does not always end when an amendment is adopted. Instead, the meaning and recognition of constitutional change can continue to evolve long after the law itself is settled. President Donald Trump issued an executive order directing the Federal Trade Commission (FTC) to strengthen enforcement of “Made in America” labeling, particularly for products sold online. The order instructs the FTC to prioritize cases against companies that falsely claim their goods are made in the United States. According to the administration, many online sellers market products as American-made even when significant parts or manufacturing occur overseas. The order emphasizes that consumers should be able to rely on clear and accurate country-of-origin claims when shopping. To address the issue, the FTC has been directed to consider new regulations requiring online retailers to verify that products advertised as “Made in the USA” actually meet legal standards. If sellers fail to confirm those claims, the order states the conduct could violate the Federal Trade Commission Act. Federal agencies responsible for country-of-origin labeling are also instructed to coordinate with the FTC to ensure consistent guidance for businesses. In addition, agencies involved in federal procurement must review origin claims for goods purchased through government contracts. Vendors that misrepresent product origins could be referred to the U.S. Department of Justice. The order comes amid growing litigation over allegedly misleading “Made in America” marketing. Several companies have faced lawsuits claiming their branding implies domestic production even when manufacturing occurs abroad. Examples include disputes involving a coffee company accused of implying its products were American-made and lawsuits challenging origin claims for household products like aluminum foil and kitchenware. These cases highlight the legal risks companies face when marketing goods as domestically produced without meeting regulatory standards. Trump Executive Order Targets ‘Made In America’ Labeling - Law360 U.S. prosecutors are defending a decision to block Venezuelan government funds from being used to pay for the legal defense of former Venezuelan president Nicolás Maduro in his U.S. criminal case. Maduro and his wife, Cilia Flores, are facing federal charges in New York related to drug trafficking and have pleaded not guilty while awaiting trial in custody. Maduro’s lawyer asked a federal judge to dismiss the indictment, arguing that the U.S. Treasury Department improperly revoked an earlier sanctions exemption that would have allowed the Venezuelan government to cover his legal fees. According to the defense, Venezuelan law and tradition require the state to pay for the president’s legal expenses, and blocking those funds interferes with Maduro’s Sixth Amendment right to counsel. Federal prosecutors responded that the exemption allowing government funds was granted by mistake and later corrected. They argued that Maduro should not benefit from Venezuelan state money because the United States has not recognized him as the legitimate leader of Venezuela for years. Prosecutors also emphasized that he and Flores remain free to use their personal funds to hire lawyers. The dispute highlights how U.S. sanctions and foreign policy can intersect with criminal proceedings in American courts. A federal judge in Manhattan is expected to address the legal funding issue during an upcoming court hearing. US prosecutors defend block on Venezuelan state funds for Maduro’s defense | Reuters A federal judge in Washington, D.C., blocked two grand jury subpoenas connected to a Justice Department investigation of Federal Reserve Chair Jerome Powell. The subpoenas sought records about a costly renovation of the Federal Reserve’s headquarters and Powell’s testimony to Congress about the project. Prosecutors had opened the investigation to examine whether Powell misled lawmakers regarding the renovation’s rising price tag. U.S. District Judge James E. Boasberg granted the Federal Reserve Board’s request to quash the subpoenas, concluding that prosecutors issued them for an improper purpose. The judge determined there was strong evidence the investigation was intended to pressure or harass Powell rather than uncover a legitimate crime. In his ruling, Boasberg noted repeated public attacks on Powell by President Donald Trump and other officials over the Federal Reserve’s interest-rate policies. The court found no meaningful evidence that Powell had committed fraud or lied to Congress. The judge also pointed out that construction projects often exceed budgets and that the Fed’s inspector general had already reviewed the renovation without identifying wrongdoing. The U.S. attorney for the District of Columbia criticized the decision and announced plans to appeal, arguing that the ruling undermines the grand jury’s ability to investigate potential crimes. Meanwhile, the decision has intensified political debate over the independence of the Federal Reserve. Some lawmakers argue the investigation threatens that independence, while others say the probe should continue. The dispute also complicates efforts to confirm a potential successor to Powell as Federal Reserve chair, whose term is set to expire soon. DC Judge Blocks Subpoenas Targeting Fed’s Powell - Law360 The Trump administration is opposing the federal judiciary’s effort to gain independent control over its courthouse buildings, arguing that the judicial branch lacks the expertise to manage large real estate operations. The dispute centers on whether responsibility for courthouse construction, maintenance, and leasing should remain with the General Services Administration (GSA), which has long managed federal buildings for the government. In a letter to the judiciary, GSA Administrator Edward Forst criticized the proposal and warned that giving the courts full authority over their facilities could lead to increased spending and reduced oversight of taxpayer funds. He cited data showing that while the judiciary accounts for a significant share of rent paid to the GSA, courthouse facilities represent an even larger share of federal spending on major building repairs and alterations. Forst said the agency will review courthouse repair and maintenance requests to ensure funds are used appropriately. Judicial officials, however, argue that the current system has left courthouses in poor condition. The Judicial Conference recently asked Congress to allow the judiciary to take over management of certain courthouse properties, citing an estimated $8.3 billion backlog in needed repairs. Court officials say the proposal would begin with a limited transition involving only a small number of districts and major courthouse buildings. The disagreement comes amid broader tensions between the judiciary and the Trump administration. Court leaders have also raised concerns that recent government reorganization and staffing cuts at the GSA have slowed security improvements and building maintenance at courthouses nationwide. Trump administration calls judiciary ‘ill-equipped’ to manage its courthouses | Reuters This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit www.minimumcomp.com/subscribe

    8 min

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Minimum Competence is your daily companion for legal news, designed to bring you up to speed on the day’s major legal stories during your commute home. Each episode is short, clear, and informative—just enough to make you minimally competent on the key developments in law, policy, and regulation. Whether you’re a lawyer, law student, journalist, or just legal-curious, you’ll get a smart summary without the fluff. A full transcript of each episode is available via the companion newsletter at www.minimumcomp.com. www.minimumcomp.com

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