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Trump and Powell bicker over Fed building renovations as president ratchets up pressure campaign

Summary

  • and Powell clashed over cost of Fed’s DC headquarters upgrade
  • Trump claims $3.1B price tag; Fed says it’s $2.5B
  • President joked about firing over cost overruns
  • Trump hinted Fed rate cuts could ease his criticism
  • Renovation has become political flashpoint in 2024

WASHINGTON (AP) — After months of criticizing Chair , President Donald Trump took the fight to the Fed’s front door on Thursday, publicly scorning the central bank chief over the ballooning costs of a long-planned building project. Powell pushed back, challenging the president’s latest price tag as incorrect.

Wearing hard hats and grim faces, standing in the middle of the construction project, Trump and Powell addressed the cameras. Trump charged that the renovation would cost $3.1 billion, much higher than the Fed’s $2.5 billion figure. Powell, standing next to him, shook his head.

The Fed Chair, after looking at a paper presented to him by Trump, said the president was including the cost of renovating a separate Fed building, known as the Martin building, that was finished five years ago.

The visit represented a significant ratcheting up of the president’s pressure on Powell to lower borrowing costs, which Trump says would accelerate economic growth and reduce the government’s borrowing costs. Presidents rarely visit the Fed’s offices, though they are just a few blocks from the White House, an example of the central bank’s independence from day-to-day .

“We have to get the down,” Trump said later after a short tour, addressing the cameras this time without Powell. “People are pretty much unable to buy houses.”

Trump is likely to be disappointed next week, however, when Fed officials will meet to decide its next steps on interest rates. Powell and other officials have signaled they will likely keep their key rate unchanged at about 4.3%. However, economists and Wall Street investors expect the Fed may start cutting rates in September.

Trump did step back a bit from some of his recent threats to fire Powell before his term ends May 26. Asked if the rising costs of the Fed’s renovation, estimated in 2022 to cost $1.9 billion, was a “fireable offense,” Trump said, “I don’t want to put this in that category.”

“To do that is a big move, and I don’t think that’s necessary,” Trump added. “I just want to see one thing happen, very simple: Interest rates come down.”

The Fed allowed reporters to tour the building before the visit by Trump, who, in his career, has bragged about his lavish spending on architectural accoutrements that gave a Versailles-like golden flair to his buildings.

Journalists get rare tour of Fed renovation

On Thursday, reporters wound through cement mixers, front loaders, and plastic pipes as they got a close-up view of the active construction site that encompasses the Fed’s historic headquarters, known as the Marriner S. Eccles building, and a second building across 20th Street in Washington.

Fed staff, who declined to be identified, said that greater security requirements, rising materials costs and tariffs, and the need to comply with historic preservation measures drove up the cost of the project, which was budgeted in 2022 at $1.9 billion.

The staff pointed out new blast-resistant windows and seismic walls that were needed to comply with modern building codes and security standards set out by the Department of Homeland Security. The Fed has to build with the highest level of security in mind, Fed staff said, including something called “progressive collapse,” in which only parts of the building would fall if hit with explosives.

Sensitivity to the president’s pending visit among Fed staff was high during the tour. Reporters were ushered into a small room outside the Fed’s boardroom, where 19 officials meet eight times a year to decide whether to change short-term interest rates. The room, which will have a security booth, is oval-shaped, and someone had written “oval office” on plywood walls.

The Fed staff downplayed the inscription as a joke. When reporters returned to the room later, it had been painted over.

During the tour, Fed staff also showed the elevator shaft that congressional critics have said is for “VIPs” only. Powell has since said it will be open to all Fed staff. The renovation includes an 18-inch (45-cm) extension so the elevator reaches a slightly elevated area that is now accessible only by steps or a ramp. A planning document that said the elevator will only be for the Fed’s seven governors was erroneous and later amended, staff said.

Renovations have been in the works for a while

Plans for the renovation were first approved by the Fed’s governing board in 2017. The project then wended its way through several local commissions for approval, at least one of which, the Commission for Fine Arts, included several Trump appointees. The commission pushed for more marble in the second of the two buildings the Fed is renovating, known as 1951 Constitution Avenue, specifically in a mostly glass extension that some of Trump’s appointees derided as a “glass box.”

Fed staff also said tariffs and inflationary increases in building material prices drove up costs. Trump in 2018 imposed a 25% duty on steel and 10% on aluminum. He increased them this year to 50%. Steel prices are up about 60% since the plans were approved, while construction materials costs overall are up about 50%, according to government data.

Fed staff also pointed to the complication of historic renovations — both buildings have significant preservation needs. Constructing a new building on an empty site would have been cheaper, they said.

As one example, the staff pointed reporters to where they had excavated beneath the Eccles building to add a floor of mechanical rooms, storage space, and some offices. The Fed staff acknowledged such structural additions underground are expensive, but said it was done to avoid adding HVAC equipment and other mechanics on the roof, which is historic.

The Fed has previously attributed much of the project’s cost to underground construction. It is also adding three underground levels of parking for its second building. Initially the central bank proposed building more above ground, but ran into Washington, D.C.’s height restrictions, forcing more underground construction.

Carilion to build first two freestanding emergency departments

Carilion Clinic on Tuesday announced plans to open its first two freestanding emergency departments,  which will be located in Botetourt and Franklin counties.

The -based system plans to break ground on both departments later this year — one in ‘s Westlake area in Franklin and the other in Botetourt’s Town Center area.

The ERs will offer 24/7 emergency care for adults and children, including traditional exam rooms, advanced imaging, telemedicine options and laboratories. If higher-level care is required, the says it can transport patients quickly to the hospital of their choice, including Carilion Roanoke Memorial Hospital and Carilion Franklin Memorial Hospital in Rocky Mount.

A Carilion spokesperson said it’s too early in the development process to give the cost of the development, the construction timeline, the number of staff to be hired and the exact size of both buildings. However, she added that the emergency departments should be operational within the next few years.

The health system is still in the planning stages and will share the exact location of the sites as details are finalized.

“We’re always looking to find the best ways to expand access to care for our communities,” said Wrenn Brendel, a Carilion vice president overseeing emergency services, in a statement. “The new facilities in Westlake and Daleville will make sure families can get the emergency care they need, close to home, without delay. The facilities will be designed with dedicated parking and easy walk-in access to emergency services for patients during critical moments.”

Carilion has more than 13,000 employees serving nearly 1 million patients through hospitals, outpatient specialty centers and primary care practices in an area spanning 20 counties, including the Roanoke and New River valleys.

GMU Baroni Center launches inaugural index of GovCon trends

SUMMARY:

  • ‘s Baroni Center launched an inaugural index analyzing trends in .
  • The index covers 200,000 firms providing nearly $800 billion in products and services to the
  • Recommendations include redefining “non-traditional” firms, improving data on innovation grants and enhance incentives for small business participation in key areas

The at George Mason University’s Costello College of Business released an inaugural index earlier this month, analyzing government contracting trends, the financial performance of government contracting firms and the current structure of the industrial base.

The center touts the index as a “first-of-its-kind analysis” of 200,000 government contracting firms that collectively provide nearly $800 billion in products, materials and services to the federal government. The Baroni Center’s research team leveraged open-source data and comprehensive surveys for the analysis.

“We are thrilled to share this inaugural index to fill important gaps in our understanding of the private sector industrial base that provides critical support to the U.S. federal government,” Baroni Center Executive Director Jerry McGinn said in a statement. “This research can help inform ongoing initiatives designed to improve government contracting processes and execution. We look forward to engaging with industry and government for meaningful discussions to drive better contracting outcomes across government.”

Key findings

Researchers have found that, over the last five years, the federal government’s use of agile acquisition vehicles, such as other transaction authorities (OTAs) and small business innovation research (SBIR) grants, increased significantly. However, there is currently no established method to measure the outcomes of these innovation investments. As a result, researchers believe that the extent to which the nation is benefiting from these contract instruments is largely anecdotal. The center says it’s “critical” to find better measurements of the outcomes.

Additionally, the center found that incentives for innovation, adoption and integration are necessary to attract and retain cutting-edge firms in the government marketplace.

Researchers also noted that the current legal definition of nontraditional firms excludes only 7.5% of firms in the market. They say if the government expects or desires non-traditional contractors to be instrumental in increasing innovation, Congress should redefine “non-traditional defense contractor” in legislation so that the term is more helpful in identifying, incentivizing and measuring the performance of corporations developing and delivering new technological capabilities to .

For example, the researchers suggest that the definition can be tailored to identify corporations whose characteristics align with those commonly associated with substantive technological innovation.

Overall, however, the analysis found the federal market remains competitive, despite a reduction in the number of firms over the past decade. Government contracting firms of all sizes surveyed by the center in 2024 remained positive about their recent performance and future prospects.

Recommendations

In addition to redefining “nontraditional defense contractors,” the center also recommended that the administration collaborate with Congress to expand the publicly available data concerning OTA and SBIR grants, aiming to identify and track the progress of prototypes to production.

It also stated that the administration should work to create contract structures that better incentivize small business investment in identified priority areas where innovations from small businesses are most highly desired.

The Baroni Center will publish the index annually. The full index can be viewed at mymasonportal.gmu.edu/bbcswebdav/xid-357406074_1.

Chesapeake approves 130+ condo development

Chesapeake City Council last week unanimously approved a rezoning request that will allow for the construction of up to 137 condo-style units on an almost 40-acre property in the city’s area.

Developer Associates plans for the at 1504 Elbow Road to be directly adjacent to and an extension of Grayson Commons, a mixed-use community of 268 homes located at Centerville Turnpike and Elbow Road.

The development calls for 89 carriage house-style condominiums, similar to townhouses, and 48 garden-style flat condominiums. The garden-style flat units will be for sale and not rentals.

The land was originally zoned for residential and agricultural purposes. The council’s vote converts 20.69 acres of the land to residential and 19.2 acres for conservation recreation.

The site will include a network of sidewalks & trails, including a 10-foot multiuse path extension along Elbow Road. The site plan designates 19 acres for preservation as a wooded conservation area, maintaining natural buffers and supporting the local environment. It also calls for the construction of seven new and extended turn lanes for improved traffic flow without adding access points.

Both the planning commission and city staff recommended approval of the project.

“This project introduces new, unique styles to the Greenbrier area, enhancing the diversity of home options available while preserving open space and connectivity,” said Drew Vakos, vice president of business development at The , in a statement. “We are grateful for the City of ‘s support and are proud to continue building communities that reflect both quality and care.”

The construction timeline for the new development and prices for the units have not been publicly announced. Dragas did not immediately respond to requests for comment.

Tesla shares sink as Musk says it could face some ‘rough quarters’ ahead

NEW YORK (AP) — shares sank Thursday after CEO said the company could face a “few rough quarters” as it transitions to a future focused less on selling cars and more on offering people rides in .

Late Wednesday, the electric vehicle maker reported another quarter of lackluster financial results, with revenue dropping 12% and profit falling 16%. Many prospective buyers have been turned off by Musk’s foray into right-wing , and the competition has ramped up in key markets such as Europe and China.

Tesla faces the loss of the $7,500 and stands to make much less money from selling regulatory credits to other automakers after recent changes to federal tax law. President Donald ‘s tariffs on countries including China and Mexico will also cost Tesla hundreds of millions of dollars, the company said on its earnings call.

Musk spent the call talking less about car sales and more about robotaxis, automated driving software and robotics, which he says is the future of the company. But he acknowledged those businesses are a ways off from contributing to Tesla’s bottom line.

Tesla began a rollout in June of its paid  service in Austin, Texas, and hopes to introduce the driverless cabs in several other cities soon. Musk told analysts that the service will be available to probably “half of the population of the U.S. by the end of the year — that’s at least our goal, subject to regulatory approvals.”

“We’re in this weird transition period where we’ll lose a lot of incentives in the U.S.,” Musk said, adding that Tesla “probably could have a few rough quarters” ahead. He added, though, “Once you get to autonomy at scale in the second half of next year, certainly by the end of next year, I would be surprised if Tesla’s economics are not very compelling.”

In early trading Thursday, Tesla share were down 8% to around $305.

Tesla tumbles and Alphabet rises to keep Wall Street near its records

Summary

  • gained 0.2% after hitting record high
  • Dow fell 204 points, rose 0.2%
  • Alphabet jumped on strong earnings
  • , and slid despite profit beats

NEW YORK (AP) — Wall Street is hanging near its records on Thursday, but the calm surface of the U.S. is hiding some roiling moves underneath. Alphabet is rising, and Tesla is tumbling following a jumble of profit reports from big U.S. companies.

The S&P 500 was 0.2% higher in morning trading after setting an all-time high the day before. The Industrial Average was down 204 points, or 0.5%, as of 10 a.m. Eastern time, and the Nasdaq composite was 0.2% higher.

Alphabet climbed 1.6% after the company behind Google and YouTube delivered a fatter profit for the latest quarter than analysts expected. It’s leaning more into artificial-intelligence technology and said it’s increasing its budget to spend on AI chips and other investments this year by $10 billion to $85 billion.

That helped push up other stocks in the AI industry, including a 0.8% rise for Nvidia. The chip company was one of the strongest forces lifting the S&P 500 because it’s the largest on Wall Street in terms of value.

But a 7.9% drop for Tesla kept the market in check. ‘s electric-vehicle company reported results for the spring that were roughly in line with or above analysts’ expectations, and Musk is trying to highlight Tesla’s moves into AI and robotaxis.

The focus, though, remains on how Musk’s foray into politics is turning off potential customers, and he said several rough quarters may be ahead as “we’re in this weird transition period where we’ll lose a lot of incentives in the U.S.”

Stocks have broadly been rallying for weeks on hopes that President Donald will reach trade deals with other countries that will lower his stiff proposed tariffs, along with the risk that they could cause a recession and drive up inflation. The record-setting gains have been so strong that criticism is rising about how expensive stock prices have become. That in turn puts pressure on companies to deliver solid growth in profits in order to justify their gains.

Besides Tesla, Chipotle Mexican Grill also helped weigh on the market. The burrito chain delivered a profit for the spring that topped analysts’ expectations, but its growth in revenue came up short. Its stock fell 12%.

IBM dropped 10.4% even though it likewise reported a stronger profit than expected. Analysts pointed to slowing growth in its software business, among other things underneath the surface.

American Airlines lost 7.9% despite reporting a stronger profit than expected. The company said it expects to report a loss for the summer quarter. It also gave a forecast for full-year results that had a wide range: between a loss of 20 cents per share and a profit of 80 cents per share, depending on how the economy performs.

Reactions in the stock market have generally been stronger than usual when companies beat or miss their profit targets by a wide margin, according to Julian Emanuel at Evercore.

Other extreme moves have also been roaring underneath the market’s surface, including huge swings for “meme stocks.” Those are stocks where traders are looking to jump in amid online cheerleading and ride it higher before getting left holding the bag when momentum stops. Opendoor Technologies is heading for a gain of 10.9% following a manic stretch where it swung by at least 10%, up or down, in 10 straight days.

Such swings, though, haven’t been showing up in overall market indexes, which have been gliding recently. The S&P 500 hasn’t had a day where it swung by at least 1% in a month.

In the bond market, Treasury yields held relatively steady following the latest signals that the U.S. economy seems to be holding up OK despite all the pressures on it from tariffs and elsewhere.

One report said that fewer U.S. workers applied for unemployment benefits last week, a potential signal of easing layoffs. A separate report from S&P Global suggested growth in U.S. business activity accelerated in July, and the preliminary results easily topped economists’ expectations.

That helped nearly cement expectations on Wall Street that the Federal Reserve will hold steady at its next meeting next week, even though Trump has been agitating angrily for cuts. The European Central Bank, which had earlier been cutting its rates, also held steady on Thursday as it waits to see how Trump’s tariffs affect the economy.

The yield on the 10-year U.S. Treasury note briefly approached 4.44% in the morning before pulling back to 4.40%, where it was late Wednesday.

In stock markets abroad, indexes rose across much of Asia and Europe. Tokyo’s jump of 1.6% and London’s rise of 1% were two of the bigger gains.

UnitedHealth says it is under a federal investigation and cooperating

Summary

  • says it’s under DOJ criminal and civil probes
  • Investigation tied to billing practices
  • Company cooperating after reviewing media reports
  • Federal scrutiny follows earlier Wall Street Journal report

Shares of UnitedHealth Group slipped Thursday after the giant said it was under a investigation.

The company said it has started complying with both criminal and civil requests from federal investigators and it was cooperating with them.

“(UnitedHealth) has a long record of responsible conduct and effective compliance,” the company said in a Securities and Exchange Commission filing.

Earlier this year, The Wall Street Journal said federal officials had launched a civil fraud investigation into how the company records diagnoses that lead to extra payments for its Medicare Advantage, or MA, plans. Those are privately run versions of the government’s Medicare coverage program mostly for people ages 65 and over.

The company’s UnitedHealthcare business covers more than 8 million people as the nation’s largest provider of Medicare Advantage plans. The business has been under pressure in recent quarters due to rising care use and rate cuts.

The Journal said in February, citing anonymous sources, that the probe focused on billing practices in recent months.

The paper then said earlier this month that a federal criminal health care-fraud unit was investigating how the company used doctors and nurses to gather diagnoses that bolster payments.

UnitedHealth Group Inc. said that it reached out to the Justice Department “after reviewing media reports about into certain aspects of the company’s participation in the Medicare program.”

UnitedHealth runs one of the nation’s largest and pharmacy benefits management businesses. It also operates a growing Optum business that provides care and technology support.

UnitedHealth raked in more than $400 billion in revenue last year as the third-largest company in the Fortune 500. Last year, its share price topped $630 to reach a new all-time high.

But company shares have mostly shed value since December, when UnitedHealthcare CEO Brian Thompson was fatally shot in midtown Manhattan on his way to the company’s annual investor meeting. A 26-year-old suspect, Luigi Mangione, has been charged in connection with the shooting.

In April, shares plunged after the company cut its forecast due to a spike in health care use. A month later, former CEO Andrew Witty resigned and the company withdrew its forecast.

The stock price slipped another 2%, or $5.12, to $287.39 Thursday morning. That represents a 54% drop from its all-time high.

UnitedHealth will report its second-quarter results next Tuesday.

Union Pacific, Norfolk Southern confirm merger talks

Summary

  • , confirm merger discussions
  • Deal would create North America’s largest freight railroad
  • Merger would link coasts, combining major and minor players
  • Regulatory approval expected to be a major hurdle

Union Pacific and Norfolk Southern confirmed Thursday that they are in merger talks that would create a single U.S railroad with service stretching from the East to the West Coast.

The Associated Press reported last week that the companies were discussing a tie-up but neither company confirmed until Thursday morning.

The potential merger would combine the largest and smallest of the country’s six major freight railroads.

There’s widespread debate over whether such a merger would be approved by U.S. regulators, which have established a high bar for consolidation in the crucial industry.

That’s largely because of the aftermath of an industry consolidation nearly 30 years ago that involved Union Pacific. Union Pacific merged with Southern Pacific in 1996 and the tie-up led to an extended period of snarled rail traffic on U.S. rails. Three years later, Conrail was divvied up by Norfolk Southern and CSX, which led to more backups on rails in the East.

However, just two years ago, the U.S. Surface Board approved the first major rail merger in more than two decades. In that deal, which was supported by big shippers, Canadian Pacific acquired Kansas City Southern for $31 billion to create the CPKC railroad.

Still, some of the reasoning behind the approval was that it involved two of the smallest major railroads, and Kansas City Southern was the only operator with direct lines into Mexico. The combined railroad, regulators reasoned, would benefit trade across North America.

The deal left only six major freight railroads, however, which could become an issue when regulators consider whether to approve any deal between Norfolk Southern and Union Pacific.

To be approved, any major rail merger must show it will enhance competition and serve the public interest under rules established in 2001, in the wake of that pair of mergers.

Also Thursday, Union Pacific reported that its adjusted profit grew to $1.8 billion in the second quarter.

The Omaha, Nebraska company’s, per-share earnings rose rose to $3.03, beating Wall Street expectations and easily topping the $2.71 per-share profit it reported in the same period last year. Analysts were expecting profit of $2.91 per share for the recent quarter.

Operating revenue grew 2% over last year, to $6.2 billion, the company said.

Union Pacific shares fell 2% just at the opening bell Thursday, to $226.70 each. They had slumped to around $208 in early April, their lowest level of 2025, as President Donald rolled out sweeping tariffs that threatened to upend global trade.

Bridgewater College raises $36.7M in five-year campaign

Bridgewater College announced Monday that it successfully concluded its five-year Connections , raising $36.7 million from more than 1,100 donors and exceeding its $35 million goal.

Connections: The Campaign for , which ended June 30, raised money for  scholarships, teaching and learning initiatives, and capital projects.

Spokesperson Heather Cole stated that the college spent a significant portion of the money raised during the campaign over the past five years to address these needs.

The college raised around $15.1 million for teaching and learning initiatives. As part of this component of the campaign, the college named three of its schools for donors: the Bonnie Forrer and John Harvey Rhodes School of Arts and Humanities in 2021; the Rev. Wilfred E. and Dr. Joyce A. Nolen School of Business and Professional Studies in 2023; and the Greg L. and Betty P. Coffman School of Natural Sciences in 2024. Funds donated by the schools’ namesakes supported faculty development, internships, study abroad programs, summer research projects, equipment and travel expenses.

Connections funds raised also went toward establishing several endowed funds for student research and the creation of the college’s new engineering major, which provides students with access to upgraded labs, 3D printing and mechatronics. The courses prepare students for careers in mechanical, aerospace and nuclear engineering and automotive design.

For capital projects, raised $13.1 million. Money went toward the creation of Rebecca Quad, an outdoor learning space completed in 2023; the renovation of the interior spaces of Bowman Hall, the main classroom building on campus, completed in 2024; and upgrades to the Jopson Athletic Complex, including improvements to the track, javelin throw area, steeplechase and turf replacement. The college completed the upgrades to its athletic complex this year.

The campaign also raised more than $8.1 million for the Eagle Fund, a scholarship fund that provides direct and immediate scholarship support to students.

“The success of the Connections Campaign is proof that when the Bridgewater community comes together, extraordinary things happen,” Bridgewater College President David W. Bushman said in a statement. “We are humbled by the generosity of our donors — their philanthropic spirit will have a lasting impact on Bridgewater students, now and for generations to come.”

Founded in 1880 and located in the town of Bridgewater in , Bridgewater College is a private, four-year liberal arts institution with 1,450 students. It offers more than 60 undergraduate majors and minors, as well as four graduate programs.

Northern Virginia business leaders rally behind GMU president

Summary

Four powerful business organizations in Northern Virginia have sent a letter to ‘s board of visitors voicing support for George Mason President Gregory Washington, who supporters say is the next university leader the administration is seeking to oust amid four federal investigations launched in the past month.

Released Wednesday to the public, the letter is signed by the Northern Virginia Technology Council, the Northern Virginia Chamber and the Loudoun County and Prince William chambers of commerce. The groups laud Washington, who took office in 2020, for leading and fostering “a preeminent educational institution that delivers the region’s workforce. Simply stated, Mason is advancing our regional future.”

In 2019, George Mason received $235 million to produce more than 7,500 master’s graduates in tech fields over the next 20 years as part of the state’s Tech Talent Investment Program. Over the past decade, the university has forged partnerships with Amazon.com, General Dynamics Information Technology, Northrop Grumman and other major corporations.

Following University of Virginia President Jim Ryan’s resignation under similar circumstances this month, the has now seemingly turned its war on diversity, equity and inclusion, or , to focus on Washington and GMU.

The administration has launched four federal investigations at George Mason into alleged race and sex bias in hiring and promotion decisions in favor of women and people of color and alleged failure to protect Jewish students and staff from antisemitism. The U.S. ‘s civil rights division has opened two probes, and the other two investigations are under the U.S. Department of Education’s Office of Civil Rights umbrella.

The letter from the four regional business organizations, dated July 22, is the first unified defense of Washington from the business community since the federal investigations were launched. It may carry more influence than missives from Democratic politicians or faculty members — and it is not as politically loaded as it doesn’t mention the federal investigations or the Trump administration’s stance on DEI.

The letter goes on to describe how under Washington, the university has expanded its capacity for research, added industry partnerships and “created more pathways to opportunity for students from all backgrounds. … As Mason’s national profile rises, so does Virginia’s ability to attract, develop and retain top talent.”

The organizations call on the university’s board of visitors — all appointed by and in some cases with ties to powerful conservative political groups — to “reaffirm its support for Mason as a critical regional asset and for Dr. Washington’s strategic vision for the university.”

NVTC President and CEO Jennifer Taylor called for other business organizations, chambers and associations in Virginia to stand with the signatories in support of Washington. “We support Dr. Washington because his vision aligns with the needs of our business community — and because collaboration between the private sector and higher education has never been more important,” she said in a statement.

The GMU Board of Visitors is led by Rector Charles “Cully” Stimson, a senior legal fellow and manager of the National Security Law Program at the Heritage Foundation. He and other board members have been publicly critical of Washington over DEI policies. However, Washington defended himself in a statement last week, saying that “George Mason does not engage in ‘illegal DEI,’ as the general accusation has been labeled.”

Critics, including Virginia’s two Democratic U.S. senators and state lawmakers, as well as faculty members, have called the federal investigations politically motivated and say the effort is intended to force out Washington, GMU’s first Black president.

Many have drawn parallels to the resignation of U.Va.’s Ryan, who was subjected to DOJ demands to prove that U.Va. was dismantling its diversity, equity and inclusion office and initiatives after its board voted to do so in March.

At the end of June, Ryan said that he would step down in July because he wished to protect federal funding for student financial aid and research at the university, which was threatened by the Trump administration if he remained president, according to reports.