Good morning, it's Thursday, Nov. 5. Vice President JD Vance blamed the Iran war for Republican losses, and Democrats signaled they could use Congress's control of spending to end it.

Also in today's issue: Mississippi's 1,138 votes, Hegseth's job in doubt, Johnson steps aside, Florida's big tax cut, Kansas double-checks, Wall Street's big day.

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Vice President JD Vance didn't wait for the last votes to be counted to name what sank his party. The reason Republicans lost, he wrote Wednesday morning, is the war.

He went further. Anyone who thinks the Iran war was worth losing the Senate for six years, he said, should make that argument out loud.

For many families, the war is not an argument. It has killed 23 U.S. service members and wounded 865 since it began in late February, according to the Defense Department. Gas now averages $4.12 a gallon, $1.14 more than before the fighting started.

And the new Democratic majority now holds a lever that once helped end a long American war. It isn't the one most people talk about.

President Trump gave some ground. Asked about Vance's post, he said it was "largely true" that the war hurt Republicans, because it pushed gas prices up. Then he said he would do it again, because Iran can't be allowed a nuclear weapon.

He made a similar point in a Fox News interview on election night. Voters back his Iran policy, he said, but not the short-term pain at the pump.

His supporters have a real case. Trump says the war has wrecked Iran's navy, air force and air defenses. Keeping Tehran from a bomb, they argue, is worth a hard election.

Most voters didn't see it that way. In exit polls, most said the decision to strike Iran was the wrong one. That included about a quarter of Republicans.

So what can Congress do? Democrats have forced votes on war powers resolutions, which order a president to pull troops from a fight Congress never approved. Some have passed. But Trump can veto them, and overriding a veto takes two-thirds of both chambers.

That's why Senate Democratic leader Chuck Schumer reached for a different tool Wednesday. He said the war must end and pointed to the power of the purse, Congress's control over federal spending.

Here's the history behind it. In 1973, Congress passed the Case-Church Amendment, which cut off money for U.S. combat in Southeast Asia. A president can veto a bill. But he can't spend money that Congress refuses to approve.

Timing matters. Democrats don't take over until Jan. 3. Until then, the outgoing Republican Congress controls spending. The current funding law runs out Dec. 11.

Iran is watching, too. Its chief negotiator said Americans had voted no to war. A statement attributed to its supreme leader said anyone expecting U.S. policy to change is mistaken. Oil traders bet on calmer days. Brent crude, the global price, fell about 8%, below $100 a barrel for the first time since September.

Watch the next few days. Qatari mediators expected answers from both sides on a new peace proposal within about 36 hours. If talks move forward, Democrats may never need to touch war funding. If they stall, the new Congress's first big fight could be over money for the war, not just votes about it.

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Mississippi's Senate race came down to 1,138 votes Wednesday night. Democrat Scott Colom led Republican Sen. Cindy Hyde-Smith out of about 929,000 counted, with 96% of the vote in. Here's the twist. Mississippi has no recount law at all. Candidates can't ask for one, and none happens automatically. Only a court can order one, after a candidate examines the ballot boxes and files a challenge. About 3,600 mail ballots may still arrive by Nov. 10. There's also an unknown number of affidavit ballots, a kind of provisional ballot. Counties must certify by Nov. 13. Mississippi hasn't elected a Democrat to the Senate since 1982. Both campaigns have sent lawyers to watch the count (Mississippi Today).

President Trump has been asking advisers whether Defense Secretary Pete Hegseth should keep his job, CBS News reported Wednesday, citing multiple sources. Other sources said he hasn't decided. Some White House aides expect blame for the losses to land on the top officers who guided the Iran war. Florida Gov. Ron DeSantis has reportedly been floated as a replacement. His term as governor ends Jan. 5. That means the current Republican Senate could confirm him before Democrats take over. The White House said Trump has full confidence in Hegseth. Democrats were already trying to impeach Hegseth before Tuesday. After January, any new defense secretary would need a Democratic Senate's approval.

Speaker Mike Johnson told his staff Wednesday he won't run to lead House Republicans in the minority. The race to replace him is between Judiciary Chairman Jim Jordan of Ohio and Majority Leader Steve Scalise of Louisiana. The winner becomes Trump's chief defender as Democrats open investigations. A Republican aide told CBS News the vote is planned for Nov. 10. Across the aisle, Democrat Hakeem Jeffries formally launched his bid to become the first Black speaker of the House. And one result from Tuesday night is still sinking in. In Texas, Democrat Gina Hinojosa beat Gov. Greg Abbott. She is the first Democrat elected governor there since 1990, and the state's first Latina governor (Texas Tribune).

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Florida voters approved Amendment 3 with 62% of the vote, a sweeping property tax cut. In 2027, the homestead exemption on non-school property taxes jumps from $50,000 to $150,000. In 2028, it rises to $250,000. By then, the average Sarasota County homeowner should save about $700 a year. In DeSoto County, it's about $1,400. But cities and counties lose about $5 billion in the first year. Supporters, including outgoing Gov. Ron DeSantis, say local budgets grew too fast as home values climbed. Sheriffs and some Republican lawmakers warned that police, fire and libraries could pay the price. A Sarasota County commissioner says hiring freezes and possible layoffs are coming. Jacksonville could lose $300 million a year by 2029 (News4Jax).

Kansas began close-race audits Wednesday in six contests, including the race for governor. Democrat Cindy Holscher leads Republican Ty Masterson by 5,557 votes out of more than 1 million. State law calls for a hand count of 10% of precincts in each county when a race is within 1%. Holscher has declared victory. Masterson says the margin is close enough that the law calls for another look. Mail ballots postmarked by Election Day still count if they arrive by Friday. After counties certify, Masterson could ask for a full recount. The state pays only if the margin is under half a percent. Otherwise, he'd cover the cost if nothing changes. Democrat Chris Mann also leads Attorney General Kris Kobach.

The Dow jumped 1,570 points, or 3%, on Wednesday, its best day since April 2025. The S&P 500, which many retirement accounts track, rose 1.5%. Investors cheered a divided government. When Congress and the White House disagree, big tax and spending changes get harder. Markets tend to like that kind of predictability. U.S. crude oil fell more than 7%, to about $88.60 a barrel, after Vance blamed the war for the losses. A GasBuddy analyst said the national gas average could dip below $4 within a week. Not every stock celebrated, though. Chipmaker Nvidia fell about 3%. One analyst warned that Democrats could slow the buildout of AI data centers.

That's how much property tax money Florida's cities, counties and local districts are projected to lose. That's over Amendment 3's first five years, according to state economists. Homeowners keep that money. Local services have to make do without it.

P.S. How has the Iran war shown up in your own life? Hit Reply — We Read Everyone.