The Department of Education will resume collections on defaulted federal student loans beginning May 5, ending a pause in place since March 2020.⁠
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According to the department, only 38% of borrowers are current on their loans. “American taxpayers will no longer be forced to serve as collateral for irresponsible student loan policies,” said Education Secretary Linda McMahon, who criticized past forgiveness efforts as unconstitutional and misleading.⁠
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The administration ended online applications for the income-driven repayment plan earlier this year but reopened them last month. Borrowers in default will receive notices about resuming payments and available rehabilitation programs. ⁠
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Later this summer, the government will begin sending wage garnishment warnings. “There will not be any mass loan forgiveness,” the department said in a statement.⁠
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Roughly two dozen states filed a lawsuit Tuesday against the Trump administration over sweeping cuts to AmeriCorps, the federal volunteer service program established in 1993. ⁠
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The suit accuses the Department of Government Efficiency of unlawfully gutting the agency and terminating hundreds of millions in congressionally approved grants. Colorado Attorney General Phil Weiser said the administration made “abrupt and drastic cuts to staff and volunteers and terminated grants.”⁠
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AmeriCorps programs support more than 200,000 members annually, many of whom receive stipends and education benefits while working in community organizations, disaster relief, and public service projects.⁠
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According to the complaint, at least 85% of staff were placed on administrative leave this month, and some 2,000 members of the National Civilian Community Corps were informed they would be dismissed early. Notices sent to grantees cited a shift in agency priorities.⁠
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The White House defended the move by citing $40 million in improper payments attributed to documentation and coding errors. “President Trump has the legal right to restore accountability to the entire Executive Branch,” said Deputy Press Secretary Anna Kelly. ⁠
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President Donald Trump’s administration is preparing to accept a 13-year-old Boeing 747-8 from Qatar’s royal family for temporary use as Air Force One, according to unnamed sources cited by ABC News. ⁠
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The jet, described by Trump as a “very public and transparent transaction,” is expected to be modified by the U.S. Air Force for presidential use before being transferred to the Trump Presidential Library Foundation by January 2029. ⁠
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Trump previously toured the aircraft in Florida, and the estimated $400 million plane will be outfitted with security upgrades by L3Harris.⁠
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The legality of the arrangement has drawn scrutiny due to constitutional restrictions on gifts from foreign governments. ⁠
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According to sources, Attorney General Pam Bondi and White House counsel David Warrington concluded that because the gift is directed to the government and not conditioned on an official act, it does not violate the emoluments clause or federal bribery laws. ⁠
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Press secretary Karoline Leavitt said the administration is following “all applicable laws,” while Qatar’s Ministry of Defense is still in talks with the Pentagon regarding the handover.⁠
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Democratic lawmakers responded critically. Sen. Chuck Schumer posted, “Nothing says ‘America First’ like Air Force One, brought to you by Qatar,” while Rep. Adam Schiff referenced the Constitution’s Title of Nobility clause. ⁠
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Trump, meanwhile, argued that rejecting the gift would be “stupid” and claimed Democrats want taxpayers to “pay TOP DOLLAR” instead. ⁠
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The current Air Force One fleet, contracted for replacement since 2018, has faced delays, with new jets not expected until 2027.⁠
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U.S. employers added 177,000 jobs in April, surpassing expectations of 133,000 despite concerns about economic fallout from President Donald Trump’s new tariffs. The unemployment rate held steady at 4.2%, while broader underemployment dropped slightly to 7.8%. Wage growth came in below forecast, with average hourly earnings rising 0.2% on the month and 3.8% year-over-year.⁠
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Health care led hiring with 51,000 new jobs, followed by gains in transportation, warehousing, financial services, and social assistance. Manufacturing posted a minor loss of 1,000 jobs. Federal government employment fell by 9,000, attributed to Trump’s initiative with Elon Musk and the Department of Government Efficiency to cut public sector payrolls. Revisions reduced prior job growth estimates for February and March by a combined 58,000.⁠
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Market reactions included a rise in stock futures and Treasury yields, as traders delayed expectations for a Federal Reserve rate cut until July. “Job numbers remain very strong,” said Seema Shah of Principal Asset Management, though she warned of possible weakening if tariffs persist. Trump responded to the data on Truth Social, stating, “NO INFLATION, THE FED SHOULD LOWER ITS RATE!!!”⁠
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