Iowa Republican Sen. Joni Ernst is introducing legislation Thursday targeting fraud in federal programs — a proposal that would set early-warning tripwires to flag suspected scams and push agencies to claw back taxpayer dollars, Fox News Digital has learned.

‘It’s absolutely unacceptable that the fraud running rampant in Minnesota could end up costing taxpayers more than $9 billion,’ Ernst told Fox News Digital. ‘My Putting an N to Learing about Fraud Act will ensure this never happens again by putting more safeguards in place to detect scams early and require the recovery of any money ripped off from taxpayers.’

Ernst’s office said the bill is designed to hit fraud on two fronts: tightening rules around childcare payments and creating new spike alerts in healthcare programs to flag suspicious surges early, while also pushing the federal government to recover improper payments.

If passed, the bill would force state plans tied to federal childcare dollars to pay providers based on documented attendance — not just enrollment — to prevent taxpayer money from going out for care that never happened.

It also underlines that states can reimburse providers after services are delivered rather than paying upfront. Providers taking federal funds would have to track attendance and keep those records for seven years, making them available for audits by the Department of Health and Human Services, the attorney general and the comptroller general.

On the healthcare front, the legislation would create new notification requirements tied to abrupt jumps in health billings and costs. States would be required to notify Health and Human Services when the amount being paid for a service increases by more than 100% in a year, or if the number of providers seeking payment increases by 100% in a year. 

Beyond early detection, the bill aims to force agencies to claw back funds either swindled from taxpayers or received in error.

It would direct the Office of Management and Budget to issue guidance to federal agencies to ensure improper payments are recovered and require inspectors general to report annually the amount of improper payments recovered by each agency.

The legislation follows the sweeping fraud scandal that continues to plague Minnesota. Dozens of arrests have been made, most of whom are from the state’s large Somali population, as investigators uncover hundreds of millions of dollars in alleged fraud swindled from taxpayers through welfare and social services programs. 

Federal prosecutors have said the fraud could total $9 billion. 

‘The swindlers in Minnesota and everywhere else soon are going to ‘lear’ the hard way that in the era of DOGE, crime no longer pays,’ Ernst added in a comment to Fox News Digital, referring to the viral ‘Quality Learing Center.’ 

The misspelled Quality ‘Learing’ Center daycare sign became a focal point of the fraud scandal after YouTube journalist Nick Shirley dug into alleged fraud in Minnesota. 

Fox News Digital learned that Ernst will also name Minnesota Gov. Tim Walz as the January recipient of her office’s ‘Squeal Award’ for ‘failing to stop the runaway fraud in his own backyard.’ Ernst awards various lawmakers and government fraud scandals themselves the Squeal Award each month to spotlight ‘out of control waste.’

The governor dropped out of his re-election effort earlier in January amid the fallout of the fraud scandal. Walz, who has served as governor since 2019, took ownership of the fraud as it occurred under his watch, but argued multibillion-dollar figures were ‘sensationalized’ by Republicans. 

‘Whoever is in charge. Unlike the president, I’m governor now (and) whether these programs happen before we got here or afterwards, it doesn’t matter. We’re here now. We’re the ones fixing it. You have my guarantee on this, that I certainly will have this thing fixed,’ Walz said earlier in January. 

Fox News Digital reached out to his office on Thursday morning for additional comment. 

Ernst has long positioned herself as a leading Senate watchdog on waste and fraud, working with both Congress and the Trump administration to flag questionable spending. 

She launched and leads the Senate Department of Government Efficiency caucus as President Donald Trump readied to reclaim the Oval Office, which works to snuff out government spending, reduce bureaucracy and enforce transparency, producing more than $15.1 billion in real savings.

: The electric grid kept the lights on for much of the country hit by the weekend’s massive snowstorm chiefly because the Trump administration broke from Biden-era plans, keeping five major coal-fired power plants online and allowing grid providers to draw in more fossil fuel-based energy in vulnerable areas.

The Energy Department made the claims in exclusive comments to Fox News Digital, as officials said multiple megawatts of power were made additionally available from otherwise taboo hydrocarbons.

Secretary Chris Wright issued several emergency orders over the weekend and through Tuesday that permitted power plants to operate beyond levels set by EPA regulations and considered the ceiling prior to President Donald Trump’s second term, a source familiar with the situation told Fox News Digital.

Five such plants were on track to be closed under the Biden-era push to pivot from fossil fuels to green energy, the official said, adding that the Trump administration was prepared to give energy producers leeway to push more power online to reduce risks of blackouts. The Trump administration saved 17 gigawatts of coal power that were going to be forcibly shut down as well, Fox News has learned.

‘We told grid providers: if your energy demand reaches a critical level… let us know,’ the official said, adding that there is a direct correlation between the power being saved up and what was needed to keep the lights on as states from Alabama to Vermont were hammered with wintry weather and deep freezes.

As the storm approached, Wright informed grid operators to be prepared to use more than 35 gigawatts of unused backup generation nationwide, sourced from anywhere from data centers to big-box stores, bypassing prior environmental regulations by emergency order.

That gave a wide buffer against blackouts and hundreds of millions in emergency costs for Americans — as 1 gigawatt is enough to power Wright’s hometown Denver metro area alone.

‘How power sources perform during peak electricity demand reveal their true value,’ Energy Department press secretary Ben Dietderich told Fox News Digital.

‘Across the country, wind and solar generation plummeted while natural gas, coal and oil plants did the majority of the work keeping the lights on during the storm. According to DOE data, the Biden administration’s support for forcibly closing reliable coal and natural gas plants had America on track to see blackouts increase 100 times over by 2030.’

‘Thankfully, President Trump was elected and has already prevented the forced closure of five coal plants and more than 17 gigawatts of reliable coal power,’ Dietderich added.

Dietderich said the Trump administration and Wright continue to be committed to ‘unleashing’ affordable and reliable energy that works — ‘whether the wind is blowing or the sun is shining,’ a common administration reference to the unreliability of those forms of green energy when those natural power sources aren’t present.

As the storm approached, Wright remarked that the Trump administration ‘will not stand by and allow the previous administration’s reckless energy subtraction policies and bureaucratic red tape put American lives at risk.’

The structure of the department’s emergency preparations is also meant to save American lives, he said.

In that regard, wind and solar power only accounted for 10% of the energy utilized across the storm’s path.

Hydrocarbons and coal, by contrast, provided 68% of the power in those same areas, a power source often maligned on the left.

The department noted that in New England — where renewable and green energy sources are often put on the proverbial pedestal — nearly two-thirds of the energy utilized was sourced from hydrocarbon-based or coal-fired power.

American coal power itself provided enough electricity for 30 million homes across the storm’s path, the department said.

Fox News Digital reached out to President Biden’s representatives for comment.

China executed 11 people convicted of intentional homicide, fraud and other crimes linked to a cross-border scam operation, after the country’s top court approved their death sentences, authorities said Thursday.

The announcement was published on the webiste for the Supreme People’s Procuratorate, China’s highest state body responsible for criminal prosecution and oversight.

The executions followed a ruling and execution order from the Supreme People’s Court, which upheld lower court judgments against members of the so-called Ming family criminal group.

They were accused of running large-scale telecommunications fraud and gambling operations from northern Myanmar that involved more than 10 billion yuan, roughly $1.4 billion.

Authorities said the group colluded with criminal organizations led by ‘financial backers’ to operate telecom fraud schemes, illegal casinos, drug trafficking and prostitution operations.

‘The Ming family criminal group also colluded with the online fraud criminal group of Wu Hongming and others to deliberately kill, intentionally injure, and illegally detain people involved in fraud, resulting in the death of 14 Chinese citizens and injuries to many others,’ the Supreme People’s Procuratorate said.

Ming Guoping, Ming Zhenzhen, Zhou Weichang, Wu Hongming, Wu Senlong, and Fu Yubin were among those sentenced to death in September by the Wenzhou Intermediate People’s Court of Zhejiang Province.

Some of the defendants appealed, but the Zhejiang Higher People’s Court on Nov. 25 rejected the appeal, upheld the original verdict and submitted the case to the Supreme People’s Court for mandatory review.

Authorities said the prisoners were allowed to meet with close relatives before the executions were carried out.

Democratic Sen. Tammy Duckworth of Illinois fired back at Vice President JD Vance after he likened her sparring session with Secretary of State Marco Rubio during a Senate Foreign Relations Committee hearing about America’s Venezuela policy to an argument between the fictional character Forrest Gump and Isaac Newton.

‘Watching Tammy Duckworth obsessively interrupt Marco Rubio during this hearing is like watching Forest Gump argue with Isaac Newton,’ Vance quipped in a Wednesday post on X.

Duckworth responded, ‘Forrest Gump ran toward danger in Vietnam. Your boss ran to his podiatrist crying bone spurs. Petty insults at the expense of people with disabilities won’t change the fact that you’re risking troops’ lives to boost Chevron’s stock price. It’s my job to hold you accountable.’

Other Democrats also responded to Vance.

Democratic Rep. Shri Thanedar of Michigan shared Vance’s post and wrote, ‘Imagine watching Forrest Gump and your takeaway is to mock people with disabilities.’

‘That’s a U.S. Senator doing her job. This is a random troll tweeting at her,’ Illinois Gov. JB Pritzker wrote in a post on X.

‘Comparing @SenDuckworth to Forrest Gump is classless and disgraceful. She’s a veteran who lost her legs fighting for this country. If you had any honor, you’d take this post down. But you work for Trump, so clearly you have none,’ Democratic Rep. John Garamendi of California declared in a post.

Duckworth served in the Illinois Army National Guard and was deployed to Iraq in 2004, according to a biography on her Senate website, which notes that ‘On November 12, 2004, her helicopter was hit by an RPG and she lost her legs and partial use of her right arm.’

She noted in 2022 social media posts that an RPG ‘tore through the cockpit of the helicopter I was co-piloting. The blast cost me my legs, partial use of my right arm and nearly my life,’ she noted.

Vance added in another post, ‘Thank God we have a Secretary of State who knows his facts AND has the patience of Job. Great job, @SecRubio.’ 

A former staffer for Sen. Rick Scott, R-Fla., is launching his own congressional bid on Thursday, Fox News Digital has learned.

Republican Austin Rogers is formally jumping into the race for Florida’s 2nd Congressional District, a solidly Republican seat encompassing part of the Sunshine State’s panhandle. It’s currently being represented by Rep. Neal Dunn, R-Fla., who is retiring at the end of this year.

Rogers invoked both President Donald Trump and Scott in a statement announcing his candidacy in a testament to the district’s conservative lean.

‘As President Trump and Senator Scott have shown, strong leadership matters,’ Rogers said. ‘I was raised right here in the 2nd District, fishing these bays, hunting these woods, and competing on these fields. I was taught to love this country, respect hard work, and stand up for what’s right. I’ve seen firsthand how broken Washington is. Our nation needs more fighters who will fearlessly root out waste, fraud, and abuse in government.’

Rogers previously worked as general counsel for Scott’s Senate office, which he argued helped him learn ‘how Congress actually works.’

‘I have drafted legislation, conducted congressional hearings, and led investigations holding the left accountable,’ Rogers said.

Scott’s campaign team told Fox News Digital that he has no current plans to make an endorsement in the race, however.

Rogers’ statement notably did not mention Florida Gov. Ron DeSantis, another central Republican figure in the Sunshine State, despite the district including the capital city of Tallahassee.

Rogers, a father of two with a third child on the way, was born and raised in his district and moved back there with his wife after a brief stint in Washington, D.C.

Meanwhile, a crowded field is forming to replace Dunn, a surgeon and retired Army major who first won his seat in 2016. 

Three Republicans and three Democrats have already filed to run for the district, with Rogers becoming the fourth GOP hopeful in the race.

Among the GOP candidates in the race is Evan Power, Florida’s Republican Party state chairman, and Keith Gross, a businessman who previously mounted a long-shot bid against Scott in 2024.

Dunn is part of a record number of House lawmakers announcing their departures from the lower chamber in the 119th Congress. Twenty-eight Republicans and 21 Democrats have announced retirements between this year and last year, more than during any other congressional term.

President Donald Trump on Wednesday nominated federal prosecutor Colin McDonald to serve in the newly formed role of assistant attorney general for national fraud enforcement.

McDonald is currently serving as an associate deputy attorney general at the Department of Justice.

‘I am pleased to nominate Colin McDonald to serve as the first ever Assistant Attorney General for National FRAUD Enforcement, a new Division at the Department of Justice, which I created to catch and stop FRAUDSTERS that have been STEALING from the American People,’ Trump wrote on Truth Social.

‘My Administration has uncovered Fraud schemes in States like Minnesota and California, where these thieves have stolen Hundreds of Billions of Taxpayer Dollars,’ he continued.

Trump praised McDonald as a ‘very smart, tough and highly respected America First federal prosecutor who has successfully delivered justice in some of the most difficult and high-stakes cases our country has ever seen.’

‘Together, we will END THE FRAUD, and RESTORE INTEGRITY to our Federal Programs. Congratulations Colin — STOP THE SCAMS!’ the president wrote.

McDonald has been serving in the office of Deputy Attorney General Todd Blanche, who said McDonald was ‘instrumental’ in the federal government’s efforts to curb crime across the country.

‘Colin is a rockstar, who was instrumental in our team’s mission of Making America Safe Again,’ Blanche wrote on X. ‘He is a consummate prosecutor who loves God, family, and country and will serve the President and the American people well.’

Vice President JD Vance announced the new role and the creation of the National Fraud Enforcement Division at the Department of Justice during a White House press briefing earlier this month, as the administration seeks to pursue a crackdown on alleged systemic fraud in federal programs, including in Minnesota and California.

‘Colin McDonald is widely regarded as a thorough and highly competent attorney. He has an exceptional prosecutorial track record, which we look forward to seeing him put to use in his new role as Assistant Attorney General,’ Vance said at the time ahead of McDonald’s formal nomination.

Shipping in the Persian Gulf dipped sharply Wednesday as tensions with Iran intensified amid signs the U.S. was positioning military forces for a potential strike, according to maritime intelligence assessments.

The U.S. Navy’s USS Abraham Lincoln Carrier Strike Group entered the U.S. Central Command area of responsibility Monday, a U.S. official confirmed to Fox News Digital, as President Donald Trump continued to keep military options on the table.

‘At this stage, it remains ambiguous, and probably intentionally ambiguous, what the objectives and desired outcomes are of any U.S. military action,’ Ambrey Intelligence’s Robert Peters told Fox News Digital.

‘This means that there are a wider range of possibilities and retaliatory scenarios under consideration.

‘That said, there are five U.S.-flagged merchant vessels, tankers and cargo ships in the Gulf today — two transited the Strait of Hormuz earlier without any apparent issues — but those already in the Gulf and destined for the U.S. are at heightened risk,’ he added.

Trump, who earlier this week indicated ‘numerous’ calls were received from Iran, also posted about the situation on Truth Social Wednesday morning.

‘A massive Armada is heading to Iran. It is moving quickly, with great power, enthusiasm, and purpose. It is a larger fleet, headed by the great Aircraft Carrier Abraham Lincoln, than that sent to Venezuela,’ he wrote.

‘Like with Venezuela, it is ready, willing, and able to rapidly fulfill its mission, with speed and violence, if necessary. Hopefully Iran will quickly ‘Come to the Table’ and negotiate a fair and equitable deal — NO NUCLEAR WEAPONS — one that is good for all parties. Time is running out, it is truly of the essence! As I told Iran once before, MAKE A DEAL!’

The post came as the Human Rights Activists News Agency (HRANA) reported the death toll from nationwide protests in Iran has surpassed 6,200 since the outset Dec. 28. 

The organization said nearly 17,100 more were under investigation with ‘a continuation of both scattered and mass arrests’ as internet restrictions continue.

Peters meanwhile, claimed that ‘shipping companies have been advised to reduce aggregate risk when operating in the Arabian/Persian Gulf.

‘This means limiting the number of ships that could be exposed to retaliatory action, and sometimes ships will await further instructions closer to their next port in the Gulf,’ he said. ‘At this point, it is more appropriate to wait further away in case of an escalation.’

Ali Shamkhani, an advisor to Iran’s Supreme Leader Ali Khamenei, warned Wednesday that any military action by the U.S. from any origin and at any level ‘will be regarded as the start of a war, and the response will be immediate, all-out, and unprecedented, targeting the heart of Tel Aviv and all those who support the aggressor,’ according to Iran International.

‘Our brave Armed Forces are prepared — with their fingers on the trigger — to immediately and powerfully respond to ANY aggression against our beloved land, air, and sea,’ Iran’s Foreign Minister Abbas Araghchi said in a post on X.

With tensions rising in the region, Peters described how shipowners may be approached by cargo charterers to load cargo in the Gulf.

‘Then they will make the decision to avoid the Gulf for the time being until the tensions reduce,’ Peters added. ‘Interestingly, last year the Iranians did not take retaliatory action in the maritime sphere. Israeli shipping was already avoiding the Gulf, and the U.S. military action was highly targeted at the nuclear capabilities.’

But Peters warned that the situation ‘may see something similar again. If there is a much broader, regime-destabilizing operation, the effects could be considerable for wider shipping.

‘During periods like this, we tend to see greater risk aversion and inquiries from those asked to pick up cargo for U.S. charterers and destined for the U.S.,’ he added.

Shipping in the Persian Gulf dipped sharply Wednesday as tensions with Iran intensified amid signs the U.S. was positioning military forces for a potential strike, according to maritime intelligence assessments.

The U.S. Navy’s USS Abraham Lincoln Carrier Strike Group entered the U.S. Central Command area of responsibility Monday, a U.S. official confirmed to Fox News Digital, as President Donald Trump continued to keep military options on the table.

‘At this stage, it remains ambiguous, and probably intentionally ambiguous, what the objectives and desired outcomes are of any U.S. military action,’ Ambrey Intelligence’s Robert Peters told Fox News Digital.

‘This means that there are a wider range of possibilities and retaliatory scenarios under consideration,’ he added.

‘That said, there are five U.S.-flagged merchant vessels, tankers and cargo ships, in the Gulf today — two transited the Strait of Hormuz earlier without any apparent issues — but those already in the Gulf and destined for the U.S. are at heightened risk,’ he added.

Trump, who earlier this week indicated ‘numerous’ calls were received from Iran, also posted about the situation on Truth Social Wednesday morning.

‘A massive Armada is heading to Iran. It is moving quickly, with great power, enthusiasm, and purpose. It is a larger fleet, headed by the great Aircraft Carrier Abraham Lincoln, than that sent to Venezuela,’ he wrote.

‘Like with Venezuela, it is ready, willing, and able to rapidly fulfill its mission, with speed and violence, if necessary. Hopefully Iran will quickly ‘Come to the Table’ and negotiate a fair and equitable deal — NO NUCLEAR WEAPONS — one that is good for all parties. Time is running out, it is truly of the essence! As I told Iran once before, MAKE A DEAL!’

The post came as the Human Rights Activists News Agency (HRANA) reported the death toll from nationwide protests in Iran has surpassed 6,200 since the outset on Dec. 28. 

The organization said nearly 17,100 more were under investigation, with ‘a continuation of both scattered and mass arrests,’ as internet restrictions continue.

Peters meanwhile, claimed that ‘shipping companies have been advised to reduce aggregate risk when operating in the Arabian/Persian Gulf.

‘This means limiting the number of ships that could be exposed to retaliatory action, and sometimes ships will await further instructions closer to their next port in the Gulf,’ he said. ‘At this point, it is more appropriate to wait further away, in case of an escalation.’

Ali Shamkhani, an adviser to Iran’s Supreme Leader Ali Khamenei, warned Wednesday that any military action by the U.S., from any origin and at any level, ‘will be regarded as the start of a war, and the response will be immediate, all-out, and unprecedented, targeting the heart of Tel Aviv and all those who support the aggressor,’ according to Iran International.

‘Our brave Armed Forces are prepared — with their fingers on the trigger — to immediately and powerfully respond to ANY aggression against our beloved land, air, and sea,’ Iran’s Foreign Minister Abbas Araghchi said in a post on X.

With tensions rising in the region, Peters described how shipowners may be being approached by cargo charterers to load cargo in the Gulf.

‘Then they will make the decision to avoid the Gulf for the time being until the tensions reduce,’ Peters added. ‘Interestingly, last year the Iranians did not take retaliatory action in the maritime sphere: Israeli shipping was already avoiding the Gulf, and the U.S. military action was highly targeted at the nuclear capabilities.’

But Peters warned that the situation ‘may see something similar again. If there is a much broader, regime-destabilizing operation, the effects could be considerable for wider shipping.’

‘During periods like this, we tend to see greater risk aversion and inquiries from those asked to pick up cargo for U.S. charterers and destined for the U.S.,’ he added.

The White House invited rank-and-file Senate Democrats to discuss government funding options, but they declined, instead opting to unveil a list of demands to rein in Immigration and Customs Enforcement (ICE) agents in exchange for their votes to avert a shutdown. 

‘The White House hopes to avoid another debilitating government shutdown, and invited Democrats for a listening session to better understand their position,’ a senior White House official told Fox News Digital in a statement. ‘It’s unfortunate their leadership blocked the meeting.’

Meanwhile, Senate Democrats unveiled their laundry list of demands to rein in the Department of Homeland Security’s (DHS) immigration operations in exchange for their support to keep the government open. 

Democrats in the upper chamber have been quietly formulating a list of legislative demands to bring Republicans to corral DHS and ICE after another deadly shooting in Minnesota over the weekend. 

That incident, where Alex Pretti was fatally shot during an immigration operation in Minneapolis, spurred Democrats to reject the forthcoming six-bill funding package teed up for a key test vote on Thursday. 

Senate Minority Leader Chuck Schumer, D-N.Y., laid out three requirements for Democrats as the upper chamber hurtles toward a Friday deadline to fund the government. He noted that his entire caucus was unified on the ‘set of common sense and necessary policy goals that we need to rein in ICE and end the violence.’

Schumer’s first demand was an end to roving patrols, tightening the rules governing the use of warrants, and requiring that ICE coordinate with state and local law enforcement. 

Second on the list was a uniform code of conduct and accountability for federal agents, akin to the same standards applied to state and local law enforcement. Schumer contended that when those policies are broken, there should be independent investigations. 

And third, Democrats want ‘masks off, body cameras on,’ and for federal agents to carry proper identification.

‘These are common sense reforms, ones that Americans know and expect from law enforcement,’ Schumer said. ‘If Republicans refuse to support them, they are choosing chaos over order, plain and simple. They are choosing to protect Ice from accountability over American lives.’

Over the last few days, Senate Republicans have signaled their willingness to negotiate reforms to the agency beyond those baked into the existing DHS funding bill, but they have added the caveat that Senate Democrats have to actually produce a list, first. 

And Senate Majority Leader John Thune, R-S.D., has made clear that Republicans would plow ahead with the current six-bill funding package, which among other bills includes funding for the Pentagon, for Thursday’s vote. However, he hasn’t entirely closed the door on stripping the DHS bill as Democrats have called for.

Though conversations are ongoing at the rank-and-file level across the aisle, Thune said that Schumer and Senate Democrats should bring their asks to the White House and President Donald Trump.  

‘If there’s a way that the Democrats have things that they want the White House could accommodate, short of having to modify the bill, that would be, I think the best way to do what we need to do here, and that is to make sure the government gets funded,’ Thune said. 

Plus, if the DHS bill were stripped from the broader package and advanced through the Senate as Schumer has promised Democrats would do, it would still need to return to the House. Lawmakers in the lower chamber are still on their week-long recess and aren’t slated to return until next week.

There is a possibility that Democrats’ demands could also be split into a separate bill, similar to what Republicans offered during the previous shutdown when Schumer and company demanded a clean, three-year extension to the expiring Obamacare subsidies. 

When asked if he would be amenable to that option, Schumer charged that the ‘White House has had no specific, good, concrete ideas.’

‘In terms of what we want, there’s two simple things to do to get this done, and we want to get it done, and we want to get it done quickly,’ Schumer said. ‘Number one, Leader Thune has to separate the Homeland Security bill out from the other five. He can simply put an amendment on the floor to do that.’ 

‘So it’s simple to do, and I am quite confident it would pass overwhelmingly,’ he continued. ‘Already I’ve seen 6 or 7 Republicans say they would vote for it. So that’s what we should do. And then we should sit down and go and come up with strong proposals to reform ICE and rein in ICE and end the violence.’ 

Federal Reserve Chair Jerome Powell warned Wednesday that a Supreme Court showdown over sitting Fed governor Lisa Cook could have far-reaching consequences for the central bank’s independence and the U.S. economy.

‘I would say that that case is perhaps the most important legal case in the Fed’s 113-year history. As I thought about it, it might have been hard to explain why I didn’t attend,’ Powell told reporters Wednesday at the Federal Reserve.

‘Paul Volcker famously attended a Supreme Court case in, I guess, 1985 or so, so there is precedent,’ Powell said, referring to the former Federal Reserve chair who served under Presidents Jimmy Carter and Ronald Reagan.

Last week, the nation’s highest court heard oral arguments for two hours on whether President Donald Trump has the authority to remove Cook from the Federal Reserve’s Board of Governors. The court is expected to issue a ruling in the case by summer.

Cook’s legal fight traces back to late August, when Trump said he was firing her from the board.

He alleged she misrepresented information related to a trio of mortgages she obtained before joining the central bank. Cook has denied any wrongdoing and has not been charged with a crime.

She sued Trump in federal court in Washington, D.C., to block her removal. On Sept. 9, a district court judge barred Trump from firing her while the case proceeds, a decision later upheld by a federal appeals court.

Her ascent to the Federal Reserve was historic from the start. Appointed by former President Joe Biden in 2022, she became the first Black woman to serve as a Fed board governor, the seven-member panel that sets national interest rates and oversees the banking system.

Now, she stands at the center of an even more consequential moment, as Trump seeks to fire her — a step that would be unprecedented in the Fed’s history.

What’s more, Powell’s long-standing insistence on finishing his term, which ends in May, now comes amid a Justice Department criminal investigation into his congressional testimony on the Federal Reserve’s headquarters renovation.

Powell confirmed the investigation and said he respected the rule of law and congressional oversight, but described the action as ‘unprecedented’ and driven by political pressure.

Asked by reporters at the Federal Reserve for further comment, Powell declined to discuss the Justice Department investigation, pointing instead to remarks he made in a video statement on Jan. 11.

His decision to address the issue so publicly, after days of private consultations with advisors, marked a sharp departure from the central banker’s typically measured approach.

What comes next remains unclear, as the Federal Reserve navigates largely uncharted territory.