FEMA's Latest Reckoning

What's Happening

US News

FEMA's Latest Reckoning

What's going on: A group of 180 current and former employees from the Federal Emergency Management Agency (FEMA) sent Congress a blistering letter yesterday, accusing the Trump administration of undoing years of progress since Hurricane Katrina. They criticized the president’s plan to shrink FEMA and shift disaster response to the states, while warning that a leadership vacuum has crippled the agency. Since January, FEMA’s been run by officials — including DHS Secretary Kristi Noem — who don’t meet the legal requirements to lead it. The letter also slammed DHS for reassigning FEMA staff to ICE, despite already operating at a reduced capacity. DHS responded that it remains “committed to ensuring FEMA delivers for the American people.”

What it means: The warning comes just days before the 20th anniversary of Katrina and only weeks after catastrophic floods in Texas — disasters that show how deadly weak emergency management can be. FEMA employees say Texas “proved the inefficiencies, ineffectiveness, and dangers” of current decisions. Their fear: The agency is sliding back to its pre-Katrina dysfunction, cutting not only disaster recovery but also training, mitigation, and community programs. And with hurricane season in full swing, experts warn those failures could once again put lives at risk.

Related: Hurricane Erin Was This Close To Being Another Sandy (WaPo Gift Link)

Politics

The Art of the Socialist Deal?

What’s going on: The US government is now acting like a Silicon Valley investor thanks to President Trump’s $9 billion bet on Intel. And this won’t be the last: White House Economic Adviser Kevin Hassett said yesterday more deals are coming. The Intel agreement converts what was supposed to be grant money from President Joe Biden’s 2022 CHIPS Act into a 10% equity stake, instantly making Washington its biggest shareholder. The agreement capped a whiplash two-week stretch between Trump and Intel CEO Lip-Bu Tan — a Fox Business cameo, a Trump tirade, an Oval Office drop-in — and suddenly, voilà: deal done. It’s the latest in a string of government-forged investments, from Japan’s Nippon Steel to Nvidia to MP Materials. 

​​What it means: Trump is blurring the line between government and business in a way that clashes with the free-market capitalist image he built his fortune — and his campaign — on. Supporters pitch it as classic Trump — The Art of the Deal applied to national economic strategy. But critics warn the Intel stake could set a precedent for Washington picking corporate winners and losers, undermining private enterprise. Former UN ambassador Nikki Haley called it a “test case of what not to do,” while a conservative radio host labeled it “actual socialism.” On Monday, Trump defended the deal and has found an unlikely ally — self-proclaimed socialist Sen. Bernie Sanders (I-VT). Some analysts have a larger concern with more deals coming: If Washington doubles as shareholder, watchdog, and regulator, how long before the government’s bottom line starts shaping national policy?

Related: So What Are All of the World's Leading Bankers Doing in Jackson Hole? (Axios)

Entertainment

Netflix Finally Scored a Box Office Win

What's going on: The hottest K-pop group right now isn’t even real. Meet Mira, Rumi, and Zoey — the stars of Netflix’s KPop Demon Hunters. The movie follows the trio as they use their music and fighting skills to protect their fans from demons. Their Spotify tracklist already rivals that of actual K-pop groups. And yes, there’s a demon boy band in the mix with plenty of thirst traps to watch. Since its June premiere, the movie has become one of Netflix’s biggest hits of the year, soaring to the top of the streaming charts. Over the weekend, Netflix dropped a sing-along version of the film as a thank you to fans — and it stunned execs by pulling in an estimated $18 million to $20 million.

What it means: No one would be surprised if Netflix already had a sequel or spin-off in the works. The real question is whether the company can recreate this success with other projects or if this is a one-hit wonder. Investors have worried about the streaming giant’s long-term growth after its password-sharing crackdown and struggle to attract new subscribers. Netflix’s past attempts to debut original content in theaters first have also fallen flat. But this time, KPop Demon Hunters’s fan base keeps growing — some even joke they’re coming for Elsa and Anna’s crown, whether Disney’s ready to let it go or not.

Related: China’s Own Animated Hit Film Is Coming to the US (NBC)

Your Political Briefing

The week in political chaos.

Fed fight: Trump says he’s ousting Federal Reserve Governor Lisa Cook, but she says the president doesn’t have the “authority to do so.”

With the flick of a pen: Trump just signed two executive orders, one establishing "specialized” National Guard units to tackle crime in cities, and one on cashless bail in DC.

Merch mania: Gov. Gavin Newsom (D-CA) is really taking a page from the Trump playbook and selling his own Bible… among other MAGA-like merch.

Settle This

An NBC analysis found that men with this name are having a really great time right now. Which is it?

Game Time

Start your Tuesday off right with Typeshift, a fun new game that challenges you to create words from a set number of letters. Warning: It’s very addicting. Start playing.