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The government's Intel bet was worse than expected
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Tuesday, August 18, 2026
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Washington's equity portfolio has grown from one Intel stake to 31 deals — and the risks are mounting
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When the Trump administration took a 10 percent stake in Intel last year, it framed the move as a strategic bet on American semiconductor competitiveness. The Cato Institute's Scott Lincicome argued at the time it was a costly mistake. A year later, Intel's stock has risen more than sixfold, but that price appreciation obscures a far more troubling picture: the government's experiment in corporate equity ownership has mushroomed into a 31-position portfolio spanning steel, critical minerals, semiconductors, nuclear power,
rocket motors, and quantum computing — enacted by three different federal agencies under what Lincicome calls murky legal authority.
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The Commerce Department has based more than a dozen deals on the Chips and Science Act, a law that does not expressly authorize federal shareholding. Some stakes appear to have been conditioned on the granting of permits, subsidies, or other government privileges — raising questions about whether companies felt coerced. More deals are reported to be in the pipeline.
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For investors and executives, the central risk is structural: Washington has moved, in a single year, from holding no corporate equity to managing a diverse and legally questionable portfolio with no clear exit strategy or governance framework. Watch for legal challenges to the Commerce Department's authority and congressional scrutiny as the midterms approach.
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Read more at The Washington Post ›
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<a aria-label="<p>Explore Europe, Your Way, with Tourlane</p>" style="color:#121721;text-decoration:none;" target="_blank" title="<p>Explore Europe, Your Way, with Tourlane</p>">
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Explore Europe, Your Way, with
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Data Centers & AI
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Wall Street is pricing in an AI data center backlash as a midterm market risk
</a>
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<p style="margin:0;">
The
political backlash against artificial intelligence infrastructure has moved from town halls to trading desks. Strategists at Bank of America last week told clients that a strong Republican showing in November's midterms would cause U.S. equities to "rip," while a Democratic takeover of the Senate and the Texas governor's mansion could trigger a correction of more than 10 percent. The warning followed similar cautions from Evercore ISI and BCA Research about how a populist response to AI could weigh on equities. The Texas governor's race — where
incumbent Republican Greg Abbott faces pressure over data center policy — has become a particular focal point. For portfolio managers, the implication is clear: what was once a regulatory sideshow for tech infrastructure is now a variable in equity strategy.
</p>
</div>
<div style="padding:8px 0 0;text-align:left;">
<a style="color: #121721; text-decoration: none; font-weight: 600; font-size: 14px;">
Read more at
Bloomberg ›
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<h4 style="margin:0 0 6px;font-size:19px;line-height:1.35;color:#17253d;text-align:left;">
<a style="color: #17253d; text-decoration: none;">
Data center backlash is reshaping governor's races in Pennsylvania and Texas
</a>
</h4>
<div style="font-size:16px;line-height:1.6;color:#121721;text-align:left;">
<p style="margin:0;">
Pennsylvania Gov. Josh
Shapiro announced Tuesday that his administration will no longer fast-track construction permits for data centers or grant them tax exemptions unless projects meet new standards covering electricity costs, water use, and local community outreach. In Texas, Democratic challenger Gina Hinojosa released a TV ad accusing Gov. Greg Abbott of favoring data center executives over constituents. The mounting political pressure signals that permitting and tax treatment for AI infrastructure — previously routine matters — are now live electoral
liabilities in major battleground states.
</p>
</div>
<div style="padding:8px 0 0;text-align:left;">
<a style="color: #121721; text-decoration: none; font-weight: 600; font-size: 14px;">
Read more at NewsNation ›
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<h4 style="margin:0 0 6px;font-size:19px;line-height:1.35;color:#17253d;text-align:left;">
<a style="color: #17253d; text-decoration: none;">
Shapiro signs executive order blocking most new Pennsylvania data centers
</a>
</h4>
<div style="font-size:16px;line-height:1.6;color:#121721;text-align:left;">
<p style="margin:0;">
Pennsylvania Gov. Josh Shapiro signed an
executive order Tuesday requiring data center projects to meet strict new guidelines on electricity and water usage and to secure local government approval before the state will consider authorizing them. The order also removes all data centers from the state's fast-track permitting program. Administration officials said the requirements are designed to be difficult for most developers to meet. The shift is a notable reversal for Shapiro, who had previously supported accelerating data center investment in Pennsylvania and is seen as a potential
2028 presidential contender.
</p>
</div>
<div style="padding:8px 0 0;text-align:left;">
<a style="color: #121721; text-decoration: none; font-weight: 600; font-size: 14px;">
Read more at The Washington Post ›
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<a style="color: #17253d; text-decoration: none;">
Australia is setting conditions for AI investment that U.S. states are still trying to define
</a>
</h4>
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<p style="margin:0;">
Australia is requiring data center
developers — including Microsoft, Google, and Anthropic — to run facilities on clean power, limit water use, create local training programs, and provide Australian researchers and startups with access to computing capacity. Prime Minister Anthony Albanese, watching the U.S. data center backlash unfold across a country now home to 4,000 such facilities, is pushing to finalize AI legislation by early 2027. The approach offers a template for governments attempting to capture AI investment dollars without surrendering control over energy prices or
labor market outcomes.
</p>
</div>
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<a style="color: #121721; text-decoration: none; font-weight: 600; font-size: 14px;">
Read more at POLITICO ›
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Trump interviews candidates for FDA commissioner as leadership vacuum persists
</a>
</h4>
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<p style="margin:0;">
President Donald Trump met in person this week
with candidates for the vacant FDA commissioner role, according to people familiar with the process. Contenders include White House policy aide Heidi Overton, oncologist Jeff Vacirca, and Republican Rep. Buddy Carter of Georgia. The FDA post has remained unfilled as the White House manages multiple leadership vacancies across federal health agencies. For pharmaceutical and medical device companies, the choice of commissioner will shape drug approval timelines, regulatory priorities, and enforcement posture.
</p>
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<div style="padding:8px 0
0;text-align:left;">
<a style="color: #121721; text-decoration: none; font-weight: 600; font-size: 14px;">
Read more at Bloomberg ›
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Meta faces 29-state social media addiction trial seeking trillions in damages
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The source material provided for this item does not
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Read more at Quartz ›
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Iran & Oil Markets
</div>
</td>
</tr>
<tr>
<td style="padding:12px 24px 12px;">
<h3 style="margin:0 0 8px;font-family:Inter, Arial, sans-serif;font-size:24px;line-height:1.3;color:#17253d;text-align:left;">
<a style="color: #17253d; text-decoration: none;">
Trump rejects Iran deal extension as Hormuz tensions lift global borrowing costs
</a>
</h3>
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<p style="margin:0;">
The outlook for Middle East stability
deteriorated sharply as President Donald Trump said he is not interested in extending the expiring agreement with Iran, and fresh tensions flared in the Strait of Hormuz. The diplomatic breakdown is rippling through sovereign debt markets: yields on 30-year U.S. Treasuries rose to their highest level since 2007 this week, French borrowing costs hit their loftiest since 2008, and German yields reached 2011 levels. For businesses and investors, the combination of a closed Hormuz Strait — through which a fifth of global oil and liquefied natural
gas previously flowed — and surging long-term rates compounds an already strained global financing environment.
</p>
</div>
<div style="padding:8px 0 0;text-align:left;">
<a style="color: #121721; text-decoration: none; font-weight: 600; font-size: 14px;">
Read more at Bloomberg ›
</a>
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<h4 style="margin:0 0 6px;font-size:19px;line-height:1.35;color:#17253d;text-align:left;">
<a style="color: #17253d; text-decoration: none;">
Iran says Hormuz will stay shut until U.S. lifts sanctions and blockade
</a>
</h4>
<div style="font-size:16px;line-height:1.6;color:#121721;text-align:left;">
<p style="margin:0;">
Iran's top negotiator Mohammad Baqer
Qalibaf said Tuesday that the Strait of Hormuz will remain closed until the U.S. lifts its blockade of Iranian ports, removes oil sanctions, releases frozen Iranian assets, and ends military operations. The June interim memorandum of understanding between Washington and Tehran collapsed after a dispute over Hormuz control; Trump declared it "over" on July 7. With Iran now signaling a fully offensive posture, the corridor through which a fifth of global oil and LNG once traveled remains effectively shut.
</p>
</div>
<div style="padding:8px 0
0;text-align:left;">
<a style="color: #121721; text-decoration: none; font-weight: 600; font-size: 14px;">
Read more at Reuters ›
</a>
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<h4 style="margin:0 0 6px;font-size:19px;line-height:1.35;color:#17253d;text-align:left;">
<a style="color: #17253d; text-decoration: none;">
Trump says no Iran talks are taking place or scheduled, contradicting Tehran on Hormuz status
</a>
</h4>
<div style="font-size:16px;line-height:1.6;color:#121721;text-align:left;">
<p style="margin:0;">
President
Donald Trump said Tuesday that no discussions with Iran are underway or planned, asserting on Truth Social that the Strait of Hormuz is "open and operating" and that all water mines have been removed or detonated. Iran's top negotiator simultaneously told parliament that the strait remains closed pending U.S. compliance with the terms of the June interim deal. The direct contradiction between Washington and Tehran over the waterway's operational status leaves energy markets and shipping operators with no clear resolution timeline.
</p>
</div>
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<a style="color: #121721; text-decoration: none; font-weight: 600; font-size: 14px;">
Read more at Reuters ›
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<h4 style="margin:0 0 6px;font-size:19px;line-height:1.35;color:#17253d;text-align:left;">
<a style="color: #17253d; text-decoration: none;">
Pentagon weighing smaller Gulf footprint as Iran war damage reshapes base calculus
</a>
</h4>
<div style="font-size:16px;line-height:1.6;color:#121721;text-align:left;">
<p style="margin:0;">
The Defense
Department is conducting an analysis of whether to reduce the U.S. military presence in the Persian Gulf, where American bases have sustained significant damage from Iranian strikes during the conflict. Officials familiar with the review say the Pentagon may not rebuild facilities to their pre-war configurations, creating what one assessment describes as a once-in-a-generation opportunity to reconsider regional posture. A smaller Gulf footprint would carry major implications for defense contractors, regional allies, and energy infrastructure
security.
</p>
</div>
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<a style="color: #121721; text-decoration: none; font-weight: 600; font-size: 14px;">
Read more at The Washington Post ›
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<a style="color: #17253d; text-decoration: none;">
Canada's oil sands producers target late 2027 for carbon capture investment decision
</a>
</h4>
<div style="font-size:16px;line-height:1.6;color:#121721;text-align:left;">
<p style="margin:0;">
Canada's biggest oil producers
are aiming for a final investment decision on the Pathways carbon capture and storage project — designed to eliminate 6 million tonnes of emissions annually — in late 2027 or early 2028, the Oil Sands Alliance president told Reuters. Fiscal agreements with Alberta and the federal government are expected by mid-November. The project is central to Prime Minister Mark Carney's strategy of expanding Canadian oil production while maintaining climate commitments, as Ottawa works to reduce economic exposure to U.S. tariffs.
</p>
</div>
<div style="padding:8px 0 0;text-align:left;">
<a style="color: #121721; text-decoration: none; font-weight: 600; font-size: 14px;">
Read more at Reuters ›
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<h4 style="margin:0 0 6px;font-size:19px;line-height:1.35;color:#17253d;text-align:left;">
<a style="color: #17253d; text-decoration: none;">
Lula backs Amazon-area offshore drilling despite legal challenges from environmental groups
</a>
</h4>
<div style="font-size:16px;line-height:1.6;color:#121721;text-align:left;">
<p style="margin:0;">
Brazilian President Luiz Inácio Lula da Silva called
offshore oil development near the mouth of the Amazon River "a passport to the country's future" after visiting a Petrobras drilling vessel Monday. Petrobras announced last week it had detected hydrocarbons about 180 kilometers off Amapa state. Environmental and Indigenous groups have sued to halt exploration, citing inadequate community consultation and spill risk. Lula, who faces a competitive reelection race in October, framed the drilling as compatible with Brazil's renewable energy ambitions.
</p>
</div>
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0;text-align:left;">
<a style="color: #121721; text-decoration: none; font-weight: 600; font-size: 14px;">
Read more at Las Vegas Sun ›
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Justice & Regulation
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<a style="color: #17253d; text-decoration: none;">
EEOC votes to end 60-year employer workforce demographic reporting requirement
</a>
</h3>
<div style="font-size:17px;line-height:1.6;color:#121721;text-align:left;">
<p style="margin:0;">
The Equal Employment Opportunity Commission's
Republican majority voted 2-1 Tuesday to rescind a six-decade-old rule requiring tens of thousands of private-sector employers to submit annual workforce demographic data covering gender, race, and ethnicity by job category. The proposal enters a 30-day public comment period before taking effect. For corporate compliance and ESG reporting, the change removes a primary federal data source used to track workforce diversity at the executive and entry levels alike — data that has survived 10 successive administrations, both Republican and
Democratic, since its introduction.
</p>
</div>
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<a style="color: #121721; text-decoration: none; font-weight: 600; font-size: 14px;">
Read more at Atlanta Journal-Constitution ›
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<a style="color: #17253d; text-decoration: none;">
Paramount seeks $1.9 billion bond from states challenging Warner Bros. deal
</a>
</h4>
<div style="font-size:16px;line-height:1.6;color:#121721;text-align:left;">
<p style="margin:0;">
Paramount Skydance asked a court Monday to
require California and 11 other states, along with the Writers Guild of America, to post a bond covering up to $1.9 billion in "ticking fees" owed to Warner Bros. Discovery shareholders if the merger closes late. The states, including New York, Colorado, Oregon, Washington, and Nevada, would need to post a portion by Sept. 30; a loss in court would expose them to the full amount. The Justice Department approved the merger in June, but the Democratic state attorneys general coalition continues to press its antitrust challenge.
</p>
</div>
<div style="padding:8px 0 0;text-align:left;">
<a style="color: #121721; text-decoration: none; font-weight: 600; font-size: 14px;">
Read more at The Seattle Times ›
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<a style="color: #17253d; text-decoration: none;">
Federal appeals court rules Trump's Nevada U.S. attorney appointment was illegal
</a>
</h4>
<div style="font-size:16px;line-height:1.6;color:#121721;text-align:left;">
<p style="margin:0;">
A unanimous three-judge panel of the 9th U.S. Circuit
of Appeals ruled Monday that the Trump administration illegally installed Sigal Chattah as acting U.S. attorney in Nevada by bypassing Senate confirmation. The court found that Congress has not authorized the president, the courts, or the attorney general to make such appointments unilaterally. Three criminal indictments Chattah obtained remain intact for now, though they can be challenged in future proceedings. The ruling, written by a Trump-appointed judge, adds to legal constraints on the administration's use of acting appointments to staff
the Justice Department.
</p>
</div>
<div style="padding:8px 0 0;text-align:left;">
<a style="color: #121721; text-decoration: none; font-weight: 600; font-size: 14px;">
Read more at San Francisco Chronicle ›
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<a style="color: #17253d; text-decoration: none;">
Judge orders Trump administration to proceed with FBI headquarters move to Maryland
</a>
</h4>
<div style="font-size:16px;line-height:1.6;color:#121721;text-align:left;">
<p style="margin:0;">
A federal judge in
Maryland ruled Monday that the Trump administration cannot override a Biden-era General Services Administration decision to relocate FBI headquarters to Prince George's County, Maryland. U.S. District Judge Theodore D. Chuang barred FBI Director Kash Patel and Attorney General Todd Blanche from pursuing an alternative plan to keep the bureau at the Ronald Reagan Building in Washington. The GSA approved the Maryland relocation in 2023, and the court found the Justice Department had no authority to supersede that decision
unilaterally.
</p>
</div>
<div style="padding:8px 0 0;text-align:left;">
<a style="color: #121721; text-decoration: none; font-weight: 600; font-size: 14px;">
Read more at The Washington Post ›
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<a style="color: #17253d; text-decoration: none;">
Trump administration proposes rescinding 2001 rule protecting 59 million acres of undeveloped forest
</a>
</h4>
<div style="font-size:16px;line-height:1.6;color:#121721;text-align:left;">
<p style="margin:0;">
The U.S.
Forest Service filed a proposed rule Tuesday to rescind the 2001 Roadless Area Conservation Rule, which bars logging, road construction, and mining across nearly 59 million acres of undeveloped national forest. The administration says the change would improve forest management and reduce wildfire risk by shifting authority to local forest managers. Environmental groups counter that more roads increase fire danger. The proposal comes as the U.S. has recorded approximately 7.3 million acres burned in roughly 49,000 fires through Aug. 17, one of
the worst wildfire years on record.
</p>
</div>
<div style="padding:8px 0 0;text-align:left;">
<a style="color: #121721; text-decoration: none; font-weight: 600; font-size: 14px;">
Read more at Reuters ›
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<h4 style="margin:0 0 6px;font-size:19px;line-height:1.35;color:#17253d;text-align:left;">
<a style="color: #17253d; text-decoration: none;">
Trump Organization sues Capital One over account closures it calls politically motivated
</a>
</h4>
<div style="font-size:16px;line-height:1.6;color:#121721;text-align:left;">
<p style="margin:0;">
The Trump Organization has filed suit against Capital One, alleging the bank closed
its accounts for political reasons. Capital One cited money laundering concerns in its decision. Banks are broadly permitted to close accounts without providing detailed explanations. The case raises questions about the intersection of financial crime compliance procedures and political considerations — and whether courts will find that political motivation, if proven, creates actionable liability for a private bank's account termination decisions.
</p>
</div>
<div style="padding:8px 0 0;text-align:left;">
<a style="color: #121721; text-decoration: none; font-weight: 600; font-size: 14px;">
Read more at NPR ›
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3 weeks, 4 days ago - washington@e.qz.com
The government's Intel bet was worse than expected
Plus: Meta's social media addiction trial opens, and Iran keeps the Strait of Hormuz closed Data ...