| | | |  | | By Bethany Irvine | | Presented by |  | | | |  | THE CATCH-UP | | | 
Texas state lawmakers this morning unveiled a proposed map that would carve out President Donald Trump’s requested five new red-leaning districts. | AP | DEEP IN THE HEART: Everything is bigger in Texas, and the same is true of the GOP’s redistricting gambit. Texas Republicans’ rare mid-decade redraw is charting a risky route for the party’s efforts to hold the House majority in 2026. Texas state lawmakers this morning unveiled a proposed map that would carve out President Donald Trump’s requested five new red-leaning districts — which party leaders hope will give them 30 of the Lone Star State’s 38 seats. The proposal avoids any GOP-on-GOP primaries at the outset and aims to pack Democratic voters more tightly into urban districts — giving Democrats even larger margins in blue areas. But the map would dramatically alter two key blue districts in the Rio Grande Valley, including those held by Reps. Henry Cuellar and Vicente Gonzalez. It would also effectively nix three Dem-leaning districts in the Dallas, Houston and San Antonio areas, POLITICO’s Andrew Howard reports. Along with Cuellar and Gonzalez’s seats, Republicans are hoping to recapture Reps. Julie Johnson’s district in the Dallas area and potentially carve out parts of Fort Worth from Rep. Marc Veasey’s seat between Fort Worth and Dallas. The new carveouts also leave one lone Democratic seat in between San Antonio and Austin — setting up a potential primary between incumbents Greg Casar and Lloyd Doggett. The map puts several Republican and Democrats in the same district and leaves six districts without any incumbent, ramping up the recruiting timeline for both parties. The gamble: Republicans are bullish on the logic that, under the new map, Trump would have carried three of the new GOP districts by 10 points and the other two by more than 15, Andrew notes. Four of the GOP’s pickup opportunities reside in majority-Hispanic districts, and the GOP is making a major bet that the same red wave among Texas’ Latino voters that helped Trump secure the White House will carry through to 2026. Cuellar appears particularly vulnerable. “Republicans smell blood in the water” with Cuellar, who will go to trial in September on federal charges of bribery and acting as a foreign agent, NOTUS’ Daniella Diaz reports. Still, Democratic leaders see the longtime incumbent as “their undisputed best bet to keep the seat.” It’s a unique challenge for both parties: “For Democrats, the campaign tests how far they’re willing to go to defend a well-liked but damaged incumbent in an increasingly red district. For Republicans, it’s a test of their candidate recruitment chops in the type of district with a significant Hispanic population where they’re hoping to grow their majority,” Daniella writes. Either way, expect a fight from the left. Earlier this week, House Majority PAC announced a $20 million effort to fight the new maps, while House Minority Leader Hakeem Jeffries is in Austin today to strategize with Democrats. So what’s next? The new map will get a public committee hearing Friday morning. Meanwhile, lawmakers have a few weeks left to tweak the maps before the monthlong special session ends on Aug. 19. But it’s unlikely to be that straightforward. State Democrats are considering a potential quorum break before the session ends, The Texas Tribune’s Owen Dahlkamp reports. And the gears are already turning. Members of the Texas House Democratic Caucus left Austin for New Mexico yesterday to meet with Gov. Michelle Lujan Grisham, The Texas Tribune’s Renzo Downey reports. While not yet a formal quorum break, “the day trip teases the possibility that House Democrats could leave Austin for longer.” How it’s playing at home: Constituents have signaled they aren’t on board with the changes. Over the lengthy public redistricting hearings in the past week, GOP lawmakers have heard near-unanimous public opposition to their plan from the public. On Saturday, lawmakers cut off testimony at the University of Houston after five hours, while hundreds turned out for yesterday's third and final regional hearing with Texas House lawmakers at University of Texas in Arlington, per NBC DFW. Good Wednesday afternoon from the Lone Star State. Thanks for reading Playbook PM. Drop me a line at birvine@politico.com. | | | | A message from The Vapor Technology Association: The U.S. vaping industry and tens of thousands of small businesses are at risk. A Biden-era task force and rogue FDA and CBP bureaucrats are blocking all flavored vapes from entering the U.S. These bureaucrats are undermining President Trump's promises to protect our children from illicit vapes and save flavored vaping.
President Trump: Tell the FDA and CBP to stop banning vapes – vaping voters and small businesses are counting on you.
Learn more. | | | | | | 7 THINGS YOU NEED TO KNOW | | | 
The U.S. economy grew by an annual rate of 3% in the second quarter of this year, which could help inform Fed Chair Jerome Powell's announcement on rate cuts. | Jacquelyn Martin/AP |
1. THE ECONOMIC OUTLOOK: The U.S. economy grew by an annual rate of 3% in the second quarter of this year, according to a new report from the Commerce Department this morning — a strong uptick from the first three months of the year, when the economy contracted by 0.5%. The figure beat out expectations and aligns with the target that Trump has set, POLITICO’s Sam Sutton writes. More on the numbers: The report shows that consumer spending is up 1.4% — the slowest growth in consecutive quarters since the pandemic. Meanwhile, the personal consumption expenditures price index increased 2.1% — down from 3.7% last quarter.
What it means: The numbers primarily show a “decrease in imports, which are a subtraction in the calculation of GDP, and an increase in consumer spending,” though the data is “partly offset by decreases in investment and exports,” according to Commerce's Bureau of Economic Analysis. While the growth is higher than some economists' estimates, many warn the second-quarter totals may paint a distorted picture of progress — with swings in Trump’s ongoing trade war garbling the data. So what is reality? Economists say the best gauge “is to look at the average growth over the first half of the year. By that measure, the economy grew by an annualized rate of 1.25 percent between January and June — a notable slowdown from the 2.3 percent growth rate a year earlier,” WaPo’s Abha Bhattarai reports. 2. FED UP: As Washington digests the new GDP figures, Federal Reserve Chair Jerome Powell will hold a presser at 2 p.m today to announce the central bank's decision on interest rates. Though markets overwhelmingly expect the Fed to hold rates steady, it could be a divisive event: many expect Fed Governor Christopher Waller and Fed Vice Chair for Supervision Michelle Bowman to stand in opposition, CNN’s Bryan Mena writes. Both Fed governors have publicly argued the Fed should resume cuts, despite inflation fears. Should they dissent, “it would be the first time two Fed governors have simultaneously done so since 1993.” Meanwhile, Trump was quick to double-down on his pressure campaign on Powell to cut rates. The president lauded on Truth Social how today’s GDP numbers were “WAY BETTER THAN EXPECTED!” adding that Powell “MUST NOW LOWER THE RATE.” Still, some GOP lawmakers aren’t falling in line behind the president, with several noting “that their issues with interest rates center on the Fed’s regulations and the US’ borrowing — not the Fed’s monetary policy decisions,” Semafor’s Eleanor Mueller reports. Notable quotable: “We should have lower interest rates as long as it will not cause inflation, and as long as tariffs will not cause inflation, and we don’t know the answer to any of those questions yet. That’s why the Fed is being cautious,” Sen. John Kennedy (R-La.) told Semafor. “Once you let this cat out of the bag, it’s pretty hard to get it back in.” 3. TRADING SPACES: As officials stare down Trump’s Friday deadline on tariffs, the president announced via Truth Social today that he will enforce a 25% on India as well additional punishments for its reliance on energy and military supplies from Russia. Though Trump had previously extended his deadline for global officials to agree to deals with the administration or face harsh sanctions, he reiterated this morning that Friday’s deadline “STANDS STRONG, AND WILL NOT BE EXTENDED.” More from POLITICO’s Ari Hawkins and colleagues Coming attractions: A federal appeals court is set to weigh in tomorrow on the legality of Trump’s “use of tariffs to address a range of commercial, political and diplomatic issues he has labeled emergencies,” WSJ’s Jess Bravin writes. “The case is expected eventually to reach the Supreme Court; if Trump wins, legal experts say he could claim broad unilateral power to regulate the economy.”
| | | | Did you know Playbook goes beyond the newsletter—with powerhouse new co-hosts at the mic? Tune in to The Playbook Podcast every weekday for exclusive intel and sharp analysis on Trump’s Washington, straight from Jack Blanchard and Dasha Burns. Start listening now. | | | | | 4. EPSTEIN FALLOUT: Senate Minority Leader Chuck Schumer along with other Democrats lambasted Trump today in a news conference announcing their use of an obscure procedural measure in U.S. code to pressure the Trump administration to release the Jeffrey Epstein files. The conference comes after Schumer and Homeland Security Committee Dems sent a letter yesterday to AG Pam Bondi requesting that DOJ release the “full and complete” files under the federal statute. The procedure requires “an executive branch agency to hand over requested information when it’s requested by at least five members of the Senate’s Homeland Security and Governmental Affairs Committee,” POLITICO’s Jordain Carney reports. 5. 2026 WATCH: Rep. Danny Davis (D-Ill.) is expected to announce his retirement tomorrow, opening Democrats up to another highly competitive House race in 2026, POLITICO’s Shia Kapos reports. “State Rep. La Shawn Ford has already announced he’s running and is expected to get an endorsement from Davis,” though Ford is likely to face a crowded primary field. “Four of the state’s 17 House districts are poised to be open seats, with two Democratic incumbents.” 6. SINGING THE BLUES: As Senate Republicans scramble to push through Trump’s nominations before heading out on recess, the president is doubling down on efforts to push Senate Judiciary Chair Chuck Grassley to abandon the so-called blue slip policy for judicial nominations. In a flurry of social media activity this morning, Trump reposted several messages that took aim at Grassley’s age and called for term limits on politicians, POLITICO’s Hailey Fuchs reports. Grassley said he was surprised to see the issue pop up on Trump’s Truth Social feed. “I was offended by what the President said, and I’m disappointed that it would result in personal insult,” he said at the opening of a committee business meeting. 7. TAKING STOCK: “Congressional stock trading ban gets Senate panel’s OK,” by POLITICO’s Hailey Fuchs: “The committee voted 8-7 with all Republicans on the panel save [Sen. Josh] Hawley [R-Mo.] voting against proceeding with the bill. The GOP detractors argued it would unfairly punish the wealthy and disincentivize some from serving in Congress. Oklahoma Sen. James Lankford, one of the Republican nays, is chair of the Senate Ethics Committee and noted he would be responsible for enforcing the bill should it become law.”
| | | | Policy moves fast—stay ahead with POLITICO’s Policy Intelligence Assistant. Effortlessly search POLITICO's archive of 1M+ news articles, analysis documents, and legislative text. Track legislation, showcase your impact, and generate custom reports in seconds. Designed for POLITICO Pro subscribers, this tool helps you make faster, smarter decisions. Start exploring now. | | | | | | | TALK OF THE TOWN | | TRANSITIONS — Rachel Chiu is now a member of the government relations team at the LA28 Olympic & Paralympic Games. She previously was special assistant to the president and chief of staff of the Biden White House’s Office of Political Strategy and Outreach and is a Kamala Harris presidential campaign alum. … Matthew Hite is now VP of government affairs at The Association of Home Appliance Manufacturers. He previously was VP, federal advocacy for the American Rental Association. ENGAGED — Timothy O’Neill, legislative director for Rep. Tom McClintock (R-Calif.), and Ashtyn Rouland comms director for Rep. Chuck Edwards (R-N.C.), recently got engaged on the Speakers balcony. The couple met as staffers for Rep. Debbie Lesko (R-Ariz.). Pic by Cameron O’Brien …Another pic Did someone forward this email to you? Sign up here. Send Playbookers tips to playbook@politico.com or text us on Signal here. Playbook couldn’t happen without our editor Zack Stanton, deputy editor Garrett Ross and Playbook Podcast producer Callan Tansill-Suddath. Correction: Yesterday’s Playbook PM misstated Sen. Ruben Gallego’s (D-Ariz.) affiliation.
| | | | A message from The Vapor Technology Association: Nearly 500,000 Americans die annually from smoking cigarettes. 67% of Trump voters say government should promote vapes to help Americans quit smoking – and all Americans need President Trump to save flavored vaping now.
VTA stands with President Trump in cracking down on the bad actors who sell vapes targeting youth. However, a Biden-era FDA task force is out of control – wasting CBP resources on vapes, rather than human traffickers – banning vapes from the market. The vape blockade is a de facto ban on flavored vapor products nationwide, which is already shutting down small businesses.
It's time to protect this multibillion-dollar American industry and stand up for American adults' freedom to vape.
President Trump, stop the bureaucrats from undermining your promise to save flavored vaping. Don't let Biden's task force fulfill his plan to destroy legitimate businesses and hurt American consumers. American vapers are counting on you.
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