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The culture wars have entered the budget battle, as GOP leaders take aim at “woke” spending and Democrats push back with charges of bigotry.

Democrats are pouncing as Republicans sharpen their focus on what they call “woke-waste” in the federal budget, targeting programs ranging from funds for transgender immigrants in Los Angeles to a nature trail named for Michelle Obama in Georgia.

The items were included in a list unveiled earlier this month by Republicans on the House Budget Committee, which identified areas of “wasteful” spending GOP leaders are hoping to eliminate as part of their broader goal of balancing the budget within a decade.

Republicans are defending the focus on “wokeness,” saying they’re working to safeguard taxpayers from a federal government that’s abused its authority with efforts to promote “equity” and “inclusion,” typically on issues of race, gender and sexuality. 

Yet Democrats see something more sinister, accusing GOP leaders of targeting minority benefit programs, not because they’re expensive, but because the fight energizes their conservative base. 

“It’s very exemplary of their approach, which is a blend of cutting support to working-class families while also lacing in bigotry and racism,” Rep. Alexandria Ocasio-Cortez (D-N.Y.), a member of the liberal “Squad,” said. The real goal, she added, is “to distract from the actual economic impact, negative economic impact, that they’re having on working families.”

The Republican attacks on so-called wokeism are hardly new. GOP leaders have, for years, accused Democrats in both the White House and Congress of pushing an agenda that both exaggerates the prevalence of racism in America and oversteps in employing governments at all levels to take it on. 

The criticism has targeted agencies as varied as the Pentagon, the IRS and the Department of Education, touching on issues as diverse as military readiness, financial literacy and the teaching of American history. Some charge that deep-state liberals are hellbent on indoctrinating students, soldiers and the public at large with the teachings of critical race theory — a legal theory that has become a shorthand of sorts for any education centered on race.

Since taking control of the House last month, Republicans have extended those arguments with a series of bills designed to combat a “wokeness that has swept our country,” in the words of Rep. Andy Ogles (R-Tenn.). 

The coming budget debate will be the next battleground in that fight, and Budget Chairman Jodey Arrington (R-Texas) previewed the Republicans’ anti-woke strategy with the recent release of his spending cuts wish list.

Among the targeted items are about $6.6 million in funds under a section labeled “stop woke-waste,” which singles out a handful of programs on the chopping block, like $750,000 for “Transgender and Gender nonconforming and Intersex (TGI) immigrant women in Los Angeles,” $1.2 million for “LGBTQIA+ Pride Centers,” and $3.6 million to expand a hiking trail named after Michelle Obama in Decatur, Ga. The spending was greenlit by Congress as part of a $1.7 trillion bipartisan omnibus last year, a bill opposed by all but nine House Republicans. 

Republicans who support the cuts see the programs as a misuse of taxpayer dollars. Some Democrats, on the other hand, see those targets as a form of dog whistle as Republicans use their new majority to pass a series of messaging bills and galvanize conservatives ahead of the 2024 elections.

“I think they cut the line pretty close to — maybe cross the line — when it comes to trying to disguise racism with something else,” said Rep. Dan Kildee (D-Mich.), who serves on the House Budget Committee. “I think that’s what it is.” 

Arrington’s office did not respond to requests for comment. 

Speaker Kevin McCarthy (R-Calif.), as part of the marathon balloting that won him the gavel last month, had promised a group of far-right critics that House Republicans would seek to balance the budget within a decade. And the Budget Committee, charged with outlining the parameters of federal spending, will launch that process in the coming weeks with the release of its budget blueprint. 

They have their work cut out. 

The federal deficit for the current fiscal year is projected to be $1.4 trillion. And the “woke” projects Republicans are targeting are all relatively small-budget items. GOP leaders would have to cut roughly 389,000 Michelle Obama hiking trails, for instance, to bring the budget to balance — a dynamic that hasn’t been overlooked by Democrats critical of the Republicans budget strategy. 

“It’s absolutely not meaningful at all, except to the people and the agencies that are going to get cut, and I’m concerned about that,” Rep. Jan Schakowsky (D-Ill.), also a member of the House Budget Committee, said. “It’s not even budget dust, to take that kind of money away.”

The GOP’s focus on “wokeness” in the federal budget comes as Republicans face rising pressure to unify behind potential fiscal reforms amid larger funding talks around the debt limit.

Beyond calls for steep reductions to government spending, Republicans have been clashing over which items should be on the table for possible cuts in recent weeks amid a party-wide campaign to use the nation’s debt limit as leverage to extract concessions from Democrats.

The party has seen divisions in both chambers over where to cut, with different factions butting heads over proposals to scrutinize dollars for the Pentagon, as well as whether efforts to reform entitlement programs like Social Security and Medicare, which account for a massive chunk of federal spending, should also be factored into talks.

But as Republican leaders work to get members on the same page, there has been some agreement to go after “woke” spending, even amid a larger conversation in the GOP around areas to potentially trim in the Pentagon budget.

Sen. J.D. Vance (R-Ohio) signaled support for the push, while taking aim at what he called a “pretty aggressive approach” by the Pentagon in recent years to conduct “trainings that are more in line with diversity, equity and inclusion, which is the buzzword today.” United Airlines overhauls family seating fees after Biden criticism Nearly 30 percent of work remains remote as workers dig in

“I think that, obviously, a lot of that training is both not good for the military and also a waste of money,” he said. “So, I certainly think there are line items in the budget. I don’t know how much they add up to, but I think there’s certainly something to cut there.”

Democrats, though, have different ideas, accusing Republicans of throwing red meat to their base, for political reasons, while ignoring much more consequential issues. With Democrats controlling both the White House and the Senate, they’re warning that the GOP’s focus on “wokeness” is a dead-end. 

“It’s a distraction from the issues that the majority of Americans actually care about,” Rep. Steven Horsford (D-Nev.), chair of the Congressional Black Caucus, said. “This is a waste of time [that] will go absolutely nowhere in this Congress.”

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Post Office scandal: Victims say government’s control of redress schemes should be taken away

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Post Office scandal: Victims say government's control of redress schemes should be taken away

Post Office scandal victims are calling for redress schemes to be taken away from the government completely, ahead of the public inquiry publishing its first findings.

Phase 1, which is due back on Tuesday, will report on the human impact of what happened as well as compensation schemes.

“Take (them) off the government completely,” says Jo Hamilton OBE, a high-profile campaigner and former sub-postmistress, who was convicted of stealing from her branch in 2008.

“It’s like the fox in charge of the hen house,” she adds, “because they were the only shareholders of Post Office“.

“So they’re in it up to their necks… So why should they be in charge of giving us financial redress?”

Jo Hamilton OBE, a high-profile campaigner and former sub-postmistress
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Nearly a third of Ms Hamilton’s life has been dominated by the scandal

Jo and others are hoping Sir Wyn Williams, chairman of the public statutory inquiry, will make recommendations for an independent body to take control of redress schemes.

The inquiry has been examining the Post Office scandal which saw more than 700 people wrongfully convicted between 1999 and 2015.

More on Post Office Scandal

Sub-postmasters were forced to pay back false accounting shortfalls because of the faulty IT system, Horizon.

At the moment, the Department for Business and Trade administers most of the redress schemes including the Horizon Conviction Redress Scheme and the Group Litigation Order (GLO) Scheme.

The Post Office is still responsible for the Horizon Shortfall scheme.

Lee Castleton OBE, a victim of the Post Office Horizon scandal
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Lee Castleton OBE

Lee Castleton OBE, another victim of the scandal, was bankrupted in 2007 when he lost his case in the civil courts representing himself against the Post Office.

The civil judgment against him, however, still stands.

“It’s the oddest thing in the world to be an OBE, fighting for justice, while still having the original case standing against me,” he tells Sky News.

While he has received an interim payment he has not applied to a redress scheme.

“The GLO scheme – that’s there on the table for me to do,” he says, “but I know that they would use my original case, still standing against me, in any form of redress.

“So they would still tell me repeatedly that the court found me to be liable and therefore they only acted on the court’s outcome.”

He agrees with other victims who want the inquiry this week to recommend “taking the bad piece out” of redress schemes.

“The bad piece is the company – Post Office Limited,” he continues, “and the government – they need to be outside.

“When somebody goes to court, even if it’s a case against the Department for Business and Trade (DBT), when they go to court DBT do not decide what the outcome is.

“A judge decides, a third party decides, a right-minded individual a fair individual, that’s what needs to happen.”

Pic: AP
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Pic: AP

Mr Castleton is also taking legal action against the Post Office and Fujitsu – the first individual victim to sue the organisations for compensation and “vindication” in court.

“I want to hear why it happened, to hear what I believe to be the truth, to hear what they believe to be the truth and let the judge decide.”

Neil Hudgell, a lawyer for victims, said he expects the first inquiry report this week may be “really rather damning” of the redress claim process describing “inconsistencies”, “bureaucracy” and “delays”.

“The over-lawyeringness of it,” he adds, “the minute analysis, micro-analysis of detail, the inability to give people fully the benefit of doubt.

“All those things I think are going to be part and parcel of what Sir Wynn says about compensation.

“And we would hope, not going to say expect because history’s not great, we would hope it’s a springboard to an acceleration, a meaningful acceleration of that process.”

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June: Post Office knew about faulty IT system

A Department for Business and Trade spokesperson said they were “grateful” for the inquiry’s work describing “the immeasurable suffering” victims endured.

Their statement continued: “This government has quadrupled the total amount paid to affected postmasters to provide them with full and fair redress, with more than £1bn having now been paid to thousands of claimants.

“We will also continue to work with the Post Office, who have already written to over 24,000 postmasters, to ensure that everyone who may be eligible for redress is given the opportunity to apply for it.”

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MP recalls childhood abuse as he calls for law change to make domestic abuse a specific criminal offence

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MP recalls childhood abuse as he calls for law change to make domestic abuse a specific criminal offence

An MP who decided until recently to “never speak” about the abuse he suffered as a child has shared his harrowing story so that “no kid has to go through” what he did.

Josh Babarinde describes being physically abused by his mother’s former partner from the age of four, and remembers crying himself to sleep under the covers “hearing shouts, hearing screams and things smash”.

He says he became hypervigilant growing up and felt safe at school but “like he was treading on eggshells” in his own home.

The Eastbourne MP, who is also the Liberal Democrats’ justice spokesperson, says his experience has driven his politics. He is calling on the government to stop abusers “slipping through the net” and being released from prison early.

Opening up about his story in his twenties was “difficult” but looking back, Mr Babarinde says, he is “so proud of the resilience of that kid”.

The MP recently found his childhood diary containing Star Wars drawings alongside an entry he wrote from the bathroom. The diary, he recalls, wrote: “I’m really going to try to go (to the toilet) but I can’t. Oh my goodness, I’m gonna be in so much trouble, I’m going to get smacked so hard.”

Then an entry five minutes later: “I still haven’t done anything, I’m going to be in so much trouble.”

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He says reading the entry reminded him of how “helpless” he felt.

“It was mortifying,” he says. “An abuser takes away your sense of self-worth.”

Josh Babarinde speaking to Sky's Ali Fortescue.
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Mr Babarinde says he wants the government to ‘properly recognise domestic abuse crimes in the law’

The 32-year-old is calling on the government to change the law to make domestic abuse a specific criminal offence. The change would mean, he argues, abusers can no longer effectively disguise their history under other offences like assault.

He says the Ministry of Justice’s early release scheme, which has seen thousands of prisoners released early to ease overcrowding, has failed to exclude domestic abusers despite government promises because there is no formal categorisation for offenders.

It is impossible, he argues, to know exactly how many domestic abusers are in prison currently so perpetrators are “slipping through the net” on early release.

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Remembering the bravery of 7/7 victims and responders 20 years on
Met Police chief calls for ‘mega’ forces in push for shake-up

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January: Rising violence against women and girls

Mr Babarinde says the uncertainty means victims and survivors are not able to prepare for their abuser’s release.

He said: “They might need to move house or move their kids to a new school, shop in different places. All of these kind of things are so important, and so that’s why that commitment the government made was so important.”

A spokesperson for the Ministry of Justice said: “Our thoughts are with all victims of domestic abuse – it takes immense courage to speak out.

“We are building a justice system that puts victims first – strengthening support, increasing transparency, and giving people the confidence to come forward and be heard.”

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CNBC Daily Open: Most people don’t start a political party after separation

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CNBC Daily Open: Most people don't start a political party after separation

US President Donald Trump, right, and Elon Musk, chief executive officer of Tesla Inc., during a news conference in the Oval Office of the White House in Washington, DC, US, on Friday, May 30, 2025.

Francis Chung | Bloomberg | Getty Images

When they find themselves without a significant other, most men finally start living: They pay attention to their personal grooming, hit the gym and discover new hobbies.

What does the world’s richest man do? He starts a political party.

Last weekend, as the United States celebrated its independence from the British in 1776, Elon Musk enshrined his sovereignty from U.S. President Donald Trump by establishing the creatively named “American Party.”

Few details have been revealed, but Musk said the party will focus on “just 2 or 3 Senate seats and 8 to 10 House districts,” and will have legislative discussions “with both parties” — referring to the U.S. Democratic and Republican Parties.

It might be easier to realize Musk’s dream of colonizing Mars than to bridge the political aisle in the U.S. government today.

To be fair, some thought appeared to be behind the move. Musk decided to form the party after holding a poll on X in which 65.4% of respondents voted in favor.

Folks, here’s direct democracy — and the powerful post-separation motivation — in action.

 — CNBC’s Erin Doherty contributed to this report.

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Trump confirms tariffs will kick in Aug. 1. That postpones the deadline by a month, but tariffs could “boomerang” back to April levels for countries without deals. Trump on Friday said letters with “take it or leave it” offers will go out to 12 countries Monday.

U.S. stock futures slipped Sunday. Despite the White House pushing back the return of “reciprocal” tariffs, some investors could be worried trade negotiations would result in higher-than-expected duties. Europe’s Stoxx 600 index dropped 0.48% Friday.

OPEC+ members to increase oil output. Eight members of the alliance agreed on Saturday to hike their collective crude production by 548,000 barrels per day, around 100,000 more than expected.

Elon Musk forms a new political party. On Saturday, the world’s richest man said he has formed a new U.S. political party named the “American Party,” which he claims will give Americans “back your freedom.”

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And finally…

Ayrton Senna driving the Marlboro McLaren during the Belgian Grand Prix in 1992.

Pascal Rondeau | Hulton Archive | Getty Images

The CEO mindset is shifting. It’s no longer all about winning

https://www.cnbc.com/2025/07/06/the-ceo-mindset-is-shifting-its-no-longer-all-about-winning.html

CEOs today aren’t just steering companies — they’re navigating a minefield. From geopolitical shocks and economic volatility to rapid shifts in tech and consumer behavior, the playbook for leadership is being rewritten in real time.

In an exclusive interview with CNBC earlier this week, McLaren Racing CEO Zak Brown outlined a leadership approach centered on urgency, momentum and learning from failure. 

— Spriha Srivastava

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