On the final day of 2025, the Trump administration enacted a rapid series of policy moves that reshaped federal-state relations and stirred debate across health care and cultural institutions.
Major Developments
Withdrawal of Federal Troop Plans: President Donald Trump quietly abandoned efforts to deploy federal troops to Los Angeles, Chicago and Portland, marking a notable reversal after months of public tensions with municipal leaders over law-and-order initiatives. The White House announced the end of those attempted deployments on Wednesday, closing a contentious chapter in federal-local relations.
Nationwide Freeze on Childcare Payments: The Department of Health and Human Services informed ABC News that it has halted all childcare payments to every state, following an earlier targeted freeze in Minnesota. An unnamed senior official said funds will be released only when states demonstrate the money is being used "legitimately." The move raises questions about program oversight, timing and the impact on childcare providers and families.
Appeals Court on Planned Parenthood Funding: A three-judge panel of the U.S. Court of Appeals for the First Circuit agreed to allow the administration to strip Medicaid funding from Planned Parenthood health centers in 22 states and Washington, D.C., temporarily putting on hold an injunction previously issued by U.S. District Judge Indira Talwani.
Public Concern Over Healthcare: A new West Health–Gallup Center poll found 23% of Americans describe the U.S. healthcare system as being "in a state of crisis," while 47% say it has "major problems," signaling growing public unease with access and quality of care.
Kennedy Center Governance Change: Reports indicate the Kennedy Center adopted bylaws earlier in the year that would concentrate voting authority among trustees appointed by Donald Trump — a controversial governance shift critics say could entrench partisan influence at the cultural institution.
Markets Close 2025 Strong: Wall Street finished the year near record highs, buoyed by rising technology valuations and investor hopes for lower interest rates despite broader economic uncertainties.
Legal and Justice Department Updates: In a newly published deposition transcript, Jack Smith — the former Justice Department special counsel who led the abandoned federal prosecution of Donald Trump — told a congressional committee he never spoke to President Joe Biden about his cases. Separately, an unsealed order in the criminal case against Kilmar Ábrego García reveals that high-level Justice Department officials urged an indictment after García was mistakenly deported and later returned to the United States.
ICE Recruitment Campaign: U.S. Immigration and Customs Enforcement is reported to be planning a $100 million, one-year media campaign the agency describes internally as "wartime recruitment," a move that would significantly expand its public outreach and hiring efforts.
Why It Matters
These developments — a retreat on domestic troop deployments, tightened oversight of federal childcare payments, and high-profile legal decisions — highlight how the final days of 2025 reshaped federal policy priorities and set the tone for battles that could play out in courts, state capitals and Congress in 2026.
