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 MORNING REPORT

 MORNING REPORT

 

June 18, 2026 | By Sarah Fortinsky and Jared Gans

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In today's issue:

▪ Iran peace plan widely panned 

▪ Fed holds interest rates steady 

▪ FISA renewal plan thrown into chaos 

▪ Georgia punts on redistricting 

© The Associated Press | Jose Luis Magana

GOP critics aren’t buying Trump's Iran deal

President Trump’s initial efforts to sell his deal with Iran to end hostilities and reopen the Strait of Hormuz did not win over many Republicans on Wednesday.  

Trump administration officials yesterday read out the text of the 14-point memorandum of understanding (MOU) on a call with reporters. It was signed electronically earlier this week and then again by Trump last night during dinner with French President Emmanuel Macron at Versailles.  

The preliminary agreement would reopen the Strait of Hormuz and keep the critical waterway toll-free throughout the 60-day negotiation period. But several points in the MOU have faced backlash from the GOP, including a provision that allows Iran to immediately begin selling oil free of U.S. sanctions and another that would create a $300 billion fund for Iran’s reconstruction as part of a final nuclear deal.  

And while the deal reaffirms Iran’s longstanding commitment not to pursue a nuclear weapon, it lacks any specific commitments to stop nuclear enrichment or hand over weapons-grade uranium stockpiles. 

A handful of Republican senators defended the deal as details emerged on Wednesday, but the overwhelming sentiment among conservatives in Congress and in the media was that Iran was the big winner. 

Sen. Bill Cassidy (R-La.) — who recently lost his primary to a Trump-backed challenger — said former President Ronald Reagan “is rolling over in his grave” at the MOU and expressed concern that Iran would threaten access to the Strait of Hormuz in the future. 

“Before the war, the strait was open, Iran was being crushed by sanctions, and 13 service members were still alive. Now, 13 Americans are dead, families have paid billions at the pump, sanctions will be lifted, and the bombing has stopped,” Cassidy said in a post on the social platform X. 

“This is the worst foreign policy blunder in decades,” he continued. 

Sen. Ted Cruz (R-Texas), meanwhile, raised concerns about the deal granting major concessions to Iran, telling The Hill's Alexander Bolton that he thinks “the president is receiving some very poor advice on this deal.” 

“History teaches that giving billions of dollars to theocratic lunatics who want to murder us is not a good idea,” Cruz said. 

Commentator Ben Shapiro said the deal “appears to be a disaster” that doesn’t achieve any of the administration’s goals. He pointed the finger at Vice President Vance. 

“In my opinion, the vice president of the United States, the chief negotiator on this particular project, has not well served the president,” he said. 

Sen. Josh Hawley (R-Mo.) sought to give Trump the benefit of the doubt in an interview on Fox News Wednesday night, telling host Brian Kilmeade, “let's see what happens here. I mean, as the president just said, there's nothing final.” 

“I think the fact that the president's getting the Strait reopened, that he's got their nuclear program buried, those are big achievements,” he said. 

“But, senator,” Kilmeade responded, “they are allowed to sell oil, and they have more oil than just about everyone, including Iraq, and that will be the first time in decades they're able to sell oil on the open market.” 

Trump defended aspects of the deal on Wednesday, including letting Iran maintain its large arsenal of ballistic missiles, telling reporters during a Group of Seven (G7) press conference, “I mean, they have to have some, because other people have some. You got to have some.” 

The president also stressed the importance of reopening the Strait of Hormuz, saying oil reserves would run out in “about four weeks” otherwise, causing economic “bedlam.”  

“What this does is it allows the ships to go,” Trump said of the deal. “If we keep bombing, those ships won’t be going.” 

But he said the deal is “not final” and left the door open to resuming strikes on Iran. 

“It’s a memorandum of understanding, and if I don’t like it, we’ll go back to shooting at them, dropping bombs on their head,” Trump said.  

Sen. Lindsey Graham (R-S.C.), notoriously a fierce Iran hawk and loyal Trump ally, was among the first this week to raise concerns about the MOU.  

But after a “very lengthy and productive discussion” with Trump’s special envoy, Steve Witkoff, Graham signaled a posture shift, saying that he sees “little downside to trying” to reach a deal with Iran. 

“After this discussion, it is my opinion that signing the MOU will be beneficial to the United States, in as much as the Strait of Hormuz will begin to open, and the hostilities with Iran will stop,” Graham wrote on X. 

The White House took notice.  

“Thank you, Lindsey,” Vance wrote on X. “The President’s coalition is uniting behind his leadership and vision for a safer, more peaceful and prosperous world.” 

▪ The Hill: Trump defends Iran deal amid criticism. 

▪ The Hill: The Memo: Hawks lament ‘disaster’ on Iran. 

 

3 Things to Know Today

 
  1. The average national price of a gallon of gas has fallen below $4 for the first time since March, according to AAA. Costs have been coming down for a few weeks as the administration touted progress in peace negotiations with Iran and efforts to reopen the Strait of Hormuz. 
  2. An opening ceremony will be held at noon for the Barack Obama Presidential Center in Chicago. The ceremony will feature performances from various major musical artists. The center will open to the public Friday. 
  3. The Senate Foreign Relations Committee will hold a hearing today on the nominations of five people to serve as ambassadors, including Kari Lake to serve as ambassador to Jamaica. 

LEADING THE DAY

© The Associated Press | Rod Lamkey

HOLDING STEADY: The Federal Reserve voted to keep interest rates at their current level Wednesday in new Fed Chair Kevin Warsh’s first rate-setting meeting.  

The Federal Open Market Committee voted unanimously to hold rates steady at a range of 3.5 to 3.75 percent. The decision had been expected, as it came after inflation reached a three-year high last month as the Iran war has escalated the price of energy and other products. 

Warsh succeeded Jerome Powell as Trump has openly pushed for the Fed to be more aggressive in bringing down interest rates. But the prospects for future rate cuts this year appear increasingly slim, given higher inflation and a hotter-than-expected jobs report in May. 

Eight members of the committee signaled in economic projections that they expect the Fed to hold rates steady for the rest of the year, while nine said they anticipated varying levels of rate hikes. Only one member indicated a quarter-point rate cut was possible this year. 

Warsh said after the decision that he didn’t participate in the projections, as expected. 

Although Trump had said in April that he would be upset if Warsh didn’t immediately lower rates once he became chair, the president brushed off the decision. 

“It’s alright. Whatever,” Trump said. “But we have a very good guy over there now, so I’m guided by what he wants.” 

▪ The Hill: Warsh ends forward forecasts. 

▪ Reuters: Warsh announces task forces to study Fed operations. 

FISA SETBACK: Efforts to restore the federal government’s warrantless surveillance powers have taken a major hit after Trump canceled the hearing for his nominee to become the next director of national intelligence. 

Jay Clayton, a U.S. attorney and former Securities and Exchange Commission head, was scheduled to appear before the Senate Intelligence Committee on Wednesday for a hearing that could have put his nomination on a path to quick confirmation. 

But Trump announced earlier that morning that he would delay the confirmation process, accusing Democrats of breaking a deal that would result in renewing Section 702 of the Foreign Intelligence Surveillance Act (FISA). 

Trump is insisting that the Senate confirm Clayton’s replacement as U.S. attorney before taking up Clayton’s nomination as intelligence chief. He’s also demanding that Congress add the Safeguard American Voter Eligibility (SAVE America) Act, a major voting requirements bill, to an extension of FISA. 

Section 702 has been expired for nearly a week after both houses of Congress failed to reach a deal on an extension. The provision allows the government to conduct intelligence-gathering on foreigners abroad without obtaining a warrant. 

Democrats are showing no signs of standing down as Bill Pulte is set to take over as acting director on Friday. 

The Hill’s Helen Huiskes reports frustration among Senate Republicans is only growing as the president has again thrown the Senate into chaos. 

▪ The Hill: Senate fumes as chaos unwinds path to FISA renewal. 

▪ The Hill: Chuck Schumer says Trump ‘holding our national security hostage.’ 

STANDING DOWN: Georgia lawmakers are calling off efforts to redraw the state’s congressional lines ahead of the 2028 cycle, at least for now. 

State legislators convened Wednesday for a special session that Gov. Brian Kemp (R) had called for to allow for Republicans to pick up additional seats in the state’s House delegation. But state House Speaker Jon Burns (R) said the time wasn’t right, citing the pending litigation in which judges are analyzing the impact of the Supreme Court’s Louisiana vs. Callais decision. 

The ruling significantly rolled back the Voting Rights Act and reignited a redistricting war that has taken place over the past year. 

The decision came too late for Georgia to take any action for 2026, but Kemp was looking ahead to 2028. Burns suggested lawmakers may come back to the issue later, saying Republicans “look forward to receiving additional judicial opinions to assist us” in future map-drawing. 

▪ WSB: Dems say GOP caved to pressure. 

 

WHEN & WHERE

  • The president will participate in a pre-taped interview at 2 p.m. He will receive an intelligence briefing at 3 p.m. and participate in a Medal of Honor ceremony at 4 p.m. 
  • The House will convene at 10 a.m. for a pro forma session. 
  • The Senate will meet at 10 a.m. 

ZOOM IN

© The Associated Press | Alex Brandon

ROAD TO DEFEAT: Members of Congress who have launched bids for higher office this year have had a lower success rate than in recent years, raising questions about how much voters still value congressional experience, The Hill’s Emily Brooks reports. 

Rep. Dusty Johnson (R-S.D.), a former chair of the Republican Main Street Caucus, was one of those failed candidates. Despite his large war chest, the congressman came in third in a four-way GOP primary race for governor in South Dakota this month. 

“House Republicans have a long list of legislative accomplishments, but these are really complicated issues. I don’t think the normals are messaging as well as angry voices on the extremes,” Johnson told Brooks.  

“Serving in the House is not viewed as a particularly big asset, and primary voters don’t seem to be excited to reward members with a different job,” he added. 

Rep. Randy Feenstra’s (R-Iowa) gubernatorial primary loss in Iowa marked another significant blow to a sitting member of Congress — and to Trump, who endorsed Feenstra in what became the president’s first major statewide primary loss of this cycle. 

Reps. Chip Roy (R-Texas), Nancy Mace (R-S.C.) and Ralph Norman (R-S.C.) are three more members whose bids for higher office fell short this cycle.  

Overall, 29 House members have launched bids for higher office: Eleven have lost, seven have won, and the jury is out for another 11 members, whose primaries will take place later this summer. 

▪ The Hill: Pastor drops congressional bid after Trump pulls support. 

ELSEWHERE

© The Associated Press | Angelina Katsanis

STRATEGY SHIFT: The defense team for Luigi Mangione, who is accused of killing UnitedHealthcare CEO Brian Thompson in 2024, plans to pursue a psychiatric defense for their client. 

New York Judge Gregory Carro said Mangione’s attorneys notified the court that they plan to argue Mangione was suffering from “extreme emotional disturbance” when the shooting happened. 

Under New York law, murder defendants can argue they were in emotional distress when killing someone, allowing them to be sent to a mental treatment facility instead of prison if found to have committed the crime.  

Mangione has pleaded not guilty to murdering the 50-year-old health insurance CEO, a case that has been a political lightning rod. He is facing both state and federal charges. 

Prosecutors allege Mangione murdered Thompson as part of wider grievances with the healthcare industry.  

A judge has dismissed some charges Mangione faced that could have brought the death penalty if convicted.  

▪ NewsNation: How Mangione’s manifesto could play in. 

▪ NBC News: Gilgo Beach killer sentenced to multiple life terms. 

OPINION

  • California needs a pro-business governor, Steve Hilton writes in The Wall Street Journal. 
  • America’s loss to Iran will unravel geopolitics, Andreas Kluth writes in Bloomberg. 

THE CLOSER

© The Associated Press | Rogelio V. Solis

And finally … It’s Thursday, which means it’s time for the weekly news quiz!  

Friday is Juneteenth, the annual celebration of the end of slavery in the country at the end of the Civil War. So this week’s quiz will test your knowledge about the holiday and how it came to be.  

Be sure to email your responses to jgans@thehill.com — please add “Quiz” to your subject line. Winners who submit correct answers will receive deserved newsletter fame on Friday. 

The holiday celebrates when Union troops reached the last enslaved people to announce that slavery had been abolished. In which state did this take place? 

1. Virginia

2. Texas

3. Florida

4. Mississippi

How many states had passed laws recognizing Juneteenth or commemorating it in some way before it became a federal holiday? 

1. 8

2. 20

3. 49

4. 50

Opal Lee is considered the “grandmother of Juneteenth” for her advocacy of the holiday. How old was she when her efforts eventually became successful after decades of activism? 

1. 66

2. 72

3. 84

4. 94

What color foods are traditionally served to celebrate Juneteenth? 

1. Blue

2. Red

3. Green

4. Yellow

 

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