In partnership with

Good morning, it's Sunday, September 13. A federal judge ruled the Trump administration broke the law by planning to cut FEMA's workforce in half — and found officials used disappearing messages to discuss it.

Also in today's issue: A 0.014-inch ballot fight, Saudi oil pipeline shut down, A dormant court activated, California's child safety sweep.

PS—Was this forwarded to you? Join The Bluebill here. Or forward this to a friend.

Half of FEMA, No Reason

Here's what landed late Friday night while most of the country was winding down for the weekend: a federal judge said the government broke the law when it tried to cut FEMA's workforce from 23,000 people to roughly 11,400 — and couldn't find any evidence explaining how that number was chosen.

FEMA is currently managing response and recovery for 1,079 open disasters across the country. The agency's surge staff — the extra workers who deploy when a hurricane or wildfire hits — dropped to just 240 for this hurricane season. That's down 60% from last year. We are in the heart of hurricane season right now. If a major storm makes landfall this month, that's what the country has.

U.S. District Judge Susan Illston, based in San Francisco, ruled that the Department of Homeland Security violated a law Congress passed after Hurricane Katrina. That law bars DHS from making deep cuts to FEMA's core duties. The staffing target of 11,383 employees, she wrote, "appears as if pulled from thin air." Not too high. Not too low. Just completely unexplained.

Now look — the case for making FEMA leaner is a real one. Every federal agency should be able to defend its headcount, and the administration has argued that states need to take more responsibility for disaster response. That's a policy debate worth having. But Judge Illston's ruling didn't just say the cuts were too deep. She said there was no analysis behind them at all. No study of what FEMA could still handle. No assessment of which functions could be safely trimmed. The number showed up, and the layoffs started.

And this is where things get harder to explain away. In a separate part of her decision, Illston found that DHS and FEMA officials used Signal — the encrypted messaging app — with auto-delete timers turned on while they discussed these very workforce decisions. Those messages are gone. The judge imposed what's called an adverse inference — a legal penalty courts use when one side destroys evidence. She'll presume the deleted messages would have hurt the government's case. That shifts the burden of proving good faith onto the administration, rather than the other way around. Using vanishing messages to discuss major policy decisions is, at minimum, a failure of basic record-keeping. At worst, it looks like something was being hidden.

A Government Accountability Office report in August found that 4,300 FEMA employees — 17% of the workforce — left the agency in fiscal year 2025. The lawsuit was brought by the American Federation of Government Employees and other labor groups, who argued the cuts gutted FEMA's ability to do the job Congress designed it to do.

The ruling didn't include immediate fixes. Both sides must agree on a remedy and report back to the court by October 9. That means for the next four weeks, FEMA's staffing stays in legal limbo — during the most active stretch of the Atlantic hurricane season.

Here's the thing worth watching. If the court orders staffing restored, it would be one of the strongest judicial checks on executive workforce decisions in years. If the administration appeals, the fight moves to the Ninth Circuit — and could outlast hurricane season entirely. October 9 is the date. But the number that matters most isn't on the court calendar. It's 240. That's the surge capacity standing between this country and the next major storm. And no ruling changes it overnight.

In partnership with 1440

Smart starts here.

You don't have to read everything — just the right thing. 1440's daily newsletter distills the day's biggest stories from 100+ sources into one quick, 5-minute read. It's the fastest way to stay sharp, sound informed, and actually understand what's happening in the world. Join 4.5 million readers who start their day the smart way.

Please support our sponsors!


In other news that matters

A 0.014-inch problem. Leon County, Florida's elections chief, Mark Earley, had his mail ballot envelope rejected by the U.S. Postal Service on September 2 because a line of text sat fourteen thousandths of an inch too close to the return address. The same envelopes were used without issue in the 2024 election and the 2026 primary. After days of appeals, USPS approved the design on September 10 — but Florida law requires ballots mailed by September 24, leaving almost no margin. The online portal election officials would need under the new USPS mail ballot rule doesn't exist yet. The Supreme Court could lift the injunction blocking those rules at any time, and hundreds of election officials across the country have warned they are not ready. (Democracy Docket)

Saudi Arabia's backup oil route was shut down after drones launched from Iraq struck the kingdom's East-West pipeline on September 10–11. The 1,200-kilometer pipeline had been carrying roughly 5 million barrels per day — Saudi Arabia's main workaround while Iran keeps the Strait of Hormuz closed. With both export routes now under pressure, gasoline nationally sits at $4.29 per gallon and diesel has hit a record $6.05. Brent crude settled Friday at $104.61 a barrel. President Trump, speaking in Ireland on September 12, said the Iran conflict would end "right after the midterms" and that oil would "come tumbling down" — the second time in a week he's predicted a quick resolution. Iran's President Masoud Pezeshkian, at the BRICS summit in India, said Iran "will not yield." (CNBC)

The Justice Department activated a court that has existed for 30 years but had never heard a single case. The Alien Terrorist Removal Court — created by Congress in 1996 to let the government use classified evidence to deport noncitizens — was used for the first time to remove Nazira Haji Zada, 47, a lawful permanent resident from Fort Worth, Texas. Prosecutors alleged she supported a plan by her son and son-in-law for an ISIS-inspired mass shooting on Election Day 2024; both men were convicted separately and will be deported after their sentences. Haji Zada was never charged with a crime but conceded to the "alien terrorist" designation and waived her appeal in an order unsealed September 11. The court allows a lower standard of proof than criminal prosecution — a distinction that matters now that the mechanism is no longer theoretical. (CBS News)

In partnership with Range Finance

You're Invited: Live Tax-Smart Investing Webinar

Your portfolio could be losing more to taxes than you might realize. On September 17, Range's CFPs and CPAs share the portfolio moves that can help you maximize your after-tax returns — join us live, and bring your questions for Q&A.

This webinar is for informational purposes only and does not constitute investment advice or a recommendation to buy, hold, or sell any security. Forward-looking statements involve risks and uncertainties. Past performance is not indicative of future results. Range defines "high earners" as households with income over $300k.

California's governor signed 13 child-safety bills on September 10, including the nation's first ban on addictive social media features — infinite scroll, autoplay video, and push notifications — for users under 16. A separate law, named after teenager Adam Raine who died by suicide in 2025 after interactions with ChatGPT, requires time limits on chatbot sessions for minors and parental alerts if a system detects self-harm risk. The social media ban passed the legislature with zero opposing votes. Fourteen states have enacted chatbot safety laws this year, but California's package is the broadest — and companies face legal liability for failing to comply. (CalMatters)

THE NUMBER

0.014 inches

The spacing gap that caused USPS to initially reject a Florida county's mail ballot envelope — a design used without issue in two prior elections. The Supreme Court could lift the injunction blocking the broader USPS mail ballot rule any day. When the distance between a valid ballot and a rejected one is thinner than a credit card, the system is measuring the wrong thing.

P.S. Can FEMA do its job with half its staff? Hit Reply — one word is enough.