SCOTUS Allows Ballroom Construction, Army Secretary Resigns, G20 Summit in NC

0:01The Supreme Court says President Trump can keep building his White House ballroom. The conservative majority said that delaying construction could hurt national security, but the court hasn't decided whether the project is even legal. By that time, the ballroom might be nearly finished. I'm Leila Faudel, that's A. Martinez, and this is Up First from NPR News. The Secretary of the Army, Don Driscoll, resigned after 18 months on the job. The Army's top civilian leader didn't like the purging of senior generals to install loyalists, among other things. NPR's Greg Myrie digs into the friction at the Pentagon.

0:35And the world's biggest economies are meeting in North Carolina this week. The Trump administration wants to use the G20 summit to convince countries to help squeeze Iran's economy. The question some countries are asking at the moment is, is the U.S. a source of stability or instability in the global economy? Stay with us. We've got the news you need to start your day.

0:59This message comes from Schwab. Self-directed investing, trading, full-service wealth management, automated investing, financial planning, thematic investing, retirement planning. And to think that's just a small taste of what Schwab offers. Because Schwab knows that when it comes to your finances, choice matters. No matter your goals, investing style, life stage, or experience, Schwab has everything you need all in one place so you can invest your way. Visit schwab.com to learn more. This message comes from HomeServe. A burst pipe. A dead water heater. The AC calling it quits. Who do you call?

1:39HomeServe is an easy way to handle unexpected home repairs. With plans covering stuff basic homeowners insurance usually won't. Instead of scrambling for a contractor, you make one call to get the repair process started. Join the millions of customers who trust HomeServe right now. Go to homeserve.com slash podcast for 50 % less your first year. Savings compared to renewal price void in Florida. The Supreme Court is allowing construction in the White House ballroom to continue. That hands President Trump a significant victory on one of his top priorities by way of the high court's emergency docket.

2:14The move drew a dissent from Chief Justice John Roberts and the court's three liberal justices. NPR's Kerry Johnson has been following the case. Kerry, why is the Supreme Court siding with the Trump administration on this? The court said it was not tackling the heart of the matter whether this construction is legal for now. But the majority five justices said the group suing over the ballroom project had not suffered a direct concrete injury that would allow it to bring the case to court. The Supreme Court majority said, quote, mere offense, disagreement or distaste does not qualify as an injury to get through those courthouse doors.

2:50And the majority also said the government will likely suffer irreparable harm if construction is delayed. They mentioned court papers filed by leaders of the CIA, the FBI, and the Director of National Intelligence, who all said national security could be at risk and it could be harder to protect the president. All right, so that's the majority. The court, though, was closely divided 5-4. What did the dissenters say? In a bit of a surprise, Chief Justice John Roberts wrote the dissent, and he was joined by the three liberal justices. They all agreed with the National Trust for Historic Preservation, which argued the construction is likely unlawful because federal law says Congress needs to approve buildings on federal park grounds and Congress has not passed any law to pave the way for this ballroom.

3:36John Roberts says the White House is an iconic building whose, quote, symbolism and history are wrapped up in its architecture. He says the White House is not just any building. and the member of the National Trust who said she was injured here is not just any person. She's an expert on architecture. Her name is Allison Hoagland. She talked to Morning Edition this year near the construction site at the White House. Here's what she said at the time. As most Washingtonians do, we come through here all the time. This is the center of the city. We bring friends here. We drive by. We walk by. And the White House is so visually accessible to all of us.

4:13It's something we can see from the street, or at least it used to be today. It's a little difficult. Now, the National Trust says it's disappointed with this ruling and presidents are only temporary stewards of the People's House. What's the reaction from the White House? You know, despite everything going on, the wars, high prices for consumers, President Trump has really focused on the ballroom and other construction projects around the city. He posted on Truth Social, quote, I'm pleased to report the United States Supreme Court has just ruled in favor of the ballroom military complex being built without any further contingency, doubt or threat.

4:49Trump is so detail oriented about these projects, he even gave reporters a tour of the ballroom in May. Hundreds of millions of dollars already on the ballroom and it's coming out, I think, incredibly. Now, does the Supreme Court's decision mean that Trump's ballroom has no more obstacles to get around? The court is letting the construction continue for now, but it left some room to hear the underlying dispute about the legality of this project in the future. There's a complicating factor. In court papers, the Trump administration says crews are working 20 hours a day, seven days a week to finish this project.

5:25The construction's been underway for the better part of a year, and a lot more work could be done by the time the Supreme Court gets to the biggest question in this case. The president seems aware of that, he said on social media. It will all be complete in the summer of 2028, something he says the country can be proud of. That's NPR's Kerry Johnson. Kerry, thanks. Thank you.

5:51The Secretary of the Army, Dan Driscoll, has resigned after just 18 months on the job. Driscoll was the Army's top civilian leader, and his relationship with Defense Secretary Pete Hegseth has grown increasingly tense. For more, we're joined by NPR National Security Correspondent Greg Myrie. Good morning, Greg. Hi, Layla. So what was the source of friction between Hegseth and Dan Driscoll, the Army Secretary? Well, it really began almost immediately. Hegseth began dismissing many top military officers, including a number of senior Army generals, and replacing them with officers seen as more aligned with Hegseth.

6:28And Hegseth also blocked promotions of Black and women Army officers that Driscoll supported. And these personnel differences were seen as the main reason, but not the only reason they didn't see eye to eye. So before Driscoll became Army Secretary, he worked in venture capital and explored ways new technology could upgrade the Army's drone program. And in office, he was sometimes known as Trump's drone guy. However, the Pentagon recently announced the dismantling of an Army drone unit in Europe, which had been studying Ukraine's drone successes against Russia. Was Driscoll sharing his concerns, his misgivings along the way?

7:08Yeah, I think at least indirectly. Back in April, Hegseth fired the chief of the army, General Randy George, without giving a reason. Driscoll was asked about this when he testified in April on Capitol Hill. He said he was on vacation with his family in North Carolina when he heard the news and they all drove straight to General George's home. We walked right in and we all gave him a hug. There is no person that has more respect for General George and his 42 years of service. And he was an amazing transformational leader. So this is just one episode that did make clear Hegseth and Driscoll were not on the same page.

7:45How significant is this resignation at a time when the U.S. is still in the middle of a war it started with Iran? Yeah, Layla, in the broad sense, this resignation is significant because it's part of this constant churn we're seeing at the Pentagon under Hegseth, and it's continuing as the Iran war still plays out with no end in sight. But we should note the army secretary is the army's top civilian position. It's a critical job with a focus on issues such as overseeing personnel, dealing with the army's budget, and longer-term planning. But this position is not part of the military chain of command.

8:22Driscoll is not commanding army troops in the Middle East, though the army does have significant forces there. The White House said in a statement that Driscoll was, quote, highly effective in advancing President Trump's agenda to make America strong again. And it noted he had done significant things like take part in negotiations that were aimed at trying to resolve the Russia-Ukraine war. Now, Driscoll is very close with Vice President J.D. Vance. With Vance in his camp, does that mean he has a political future? Yeah, quite possibly. Driscoll and J.D. Vance were both military veterans who served in Iraq, and they met at Yale Law School and became very good friends.

9:01Vance had pushed for Driscoll to get this position as Army Secretary, and Driscoll became the youngest ever Army Secretary when he took the job last year at age 38. So well before Driscoll's resignation, there was a good deal of speculation he would leave the position at some point to take a prominent role in a J.D. Vance presidential campaign. No one would be surprised if this is where Dan Driscoll turns up next. That's NPR's Greg Myrie. Thank you, Greg. Sure thing, Layla.

9:38Finance ministers from the world's biggest economies are gathered in the mountains of North Carolina this week. They're talking about how to encourage faster economic growth while also putting the squeeze on the economy of Iran. It's the first time the U.S. has played host to the G20 summit in more than a decade and a half. NPR's Scott Horsley has been monitoring the talks. Treasury Secretary Scott Besant is pushing other members of the G20 to join the U.S. in tightening the screws on Iran. How's that going for him so far? It's a mixed bag, eh? So far, the U.S. has been unable to force Iran to reopen the Strait of Hormuz using military force.

10:15So last week, the administration announced what it's calling Operation Economic Outcast to sever Tehran's remaining links to the global economy. Of course, Iran itself is already heavily sanctioned, but now the U.S. is threatening to punish other countries that do business with Iran. At the G20 summit, Treasury Secretary Besson said he was pleased to get enthusiastic backing for the effort from the European Union. But, you know, Josh Lipsy, who's senior director of the GeoEconomics Center at the Atlantic Council, says it's not really the EU Besson needs to win over. You have the U.S. going to the G20 and sitting across the table from countries like China and Turkey, which are economic lifelines for Iran, and asking them to crack down.

10:54And the question across that table is, how serious are you about those threats? China does not feel that the U.S. is incredibly serious about those threats right now. Meanwhile, the U.S. and its allies are paying a price for the ongoing stalemate with Iran. Gas prices here at home are still more than a dollar a gallon higher than they were before the war began. and diesel prices are almost$2 higher. So this meeting, Scott, is supposed to promote economic growth around the world. How does the U.S. propose to do just that? Deregulation, oil and gas production, and cutting taxes. Of course, the GOP tax cuts last year have added to the U.S.

11:30federal debt, which topped$40 trillion a couple of weeks ago, and that's forcing the U.S. to borrow money from investors around the world. But Besson insists there is a simple solution. The world is awash in debt, and the only way for us to get out of this is to grow our way out of this. Now, fiscal watchdogs acknowledge that growth is part of the solution, but they are doubtful that it's some kind of magic elixir. Federal debt in the U.S. is growing about three times as fast as the overall economy right now, and just paying interest on that debt is consuming more than a quarter of all government revenue.

12:05So I saw that Russia's finance minister showed up at this week's meeting, which was a bit of a shock. Tell us more about that. Yeah, this was the first time Russia's been represented in person at a G20 finance meeting since the country invaded Ukraine more than four years ago. And European ministers at the meeting protested. They refused to take part in the traditional family photo until the Russian finance minister bowed out. Besant, however, appeared to have no such qualms. Meanwhile, of course, the U.S. is in a bitter trade spat with our next door neighbor, Canada. whose finance minister is also in North Carolina.

12:38Lipsky says it's a curious backdrop when the U.S. is calling for global cooperation against Iran. The whole reason the U.S. was able to stand up the G20 in the first place is because the world needed and wanted U.S. economic leadership. They needed it to stabilize the global economy. And the question some countries are asking at the moment is, is the U.S. a source of stability or instability in the global economy? As the Premier of British Columbia said this summer, if you're picking fights with Canada, you don't have a friend in the world. That's NPR's Scott Horsley. Scott, thanks. You're welcome.

13:10And that's Up First for Tuesday, September 1st. I'm E. Martinez. And I'm Leila Faldil. Today's episode of Up First was edited by Anna Yukonanov, Andrew Sussman, Rafael Naam, Mohamed El-Bardisi, and Alice Wolfley. It was produced by Ziad Butch and Nia Dumas. Our director is Christopher Thomas. We get engineering support from Nisha Hainas. Our technical director is Carly Strange, and our supervising senior producer is Vince Pearson. Join us again tomorrow.

13:55This message comes from Schwab. Self-directed investing, trading, full-service wealth management, automated investing, financial planning, thematic investing, retirement planning. And to think that's just a small taste of what Schwab offers. Because Schwab knows that when it comes to your finances, choice matters. No matter your goals, investing style, life stage, or experience, Schwab has everything you need all in one place, so you can invest your way. Visit schwab.com to learn more. This message comes from HomeServe. A burst pipe. A dead water heater. The AC calling it quits. Who do you call?

14:35HomeServe is an easy way to handle unexpected home repairs. With plans covering stuff basic homeowners insurance usually won't. Instead of scrambling for a contractor, you make one call to get the repair process started. Join the millions of customers who trust HomeServe right now. Go to homeserve.com slash podcast for 50 % less your first year. Savings compared to renewal price void in Florida. Thank you.