A Democrat on the House Oversight Committee accused the Trump administration of offloading federal real estate in a haphazard ‘fire sale’ as Republicans aim to cut wasteful government spending by selling unused or underutilized government buildings. 

Rep. Melanie Stansbury, D-N.M., the ranking Democrat on the Department of Government Efficiency (DOGE) subcommittee, took issue with the Trump administration’s approach during a hearing on Tuesday on reducing the federal real estate portfolio.

‘The Trump administration is currently taking a fire sale approach of looting the federal government and stripping it for parts to pay for tax cuts that we know will come up in their reconciliation deal,’ the lawmaker said.

DOGE is working with the federal government’s General Services Administration (GSA) to ‘rightsize’ its portfolio and cut wasteful spending. GSA has produced the most savings across federal agencies, according to the official DOGE website.

The GSA’s cost-cutting efforts have already resulted in nearly 700 lease terminations, eliminating 7.9 million square feet of federal office space and saving taxpayers approximately $400 million, according to subcommittee chair Rep. Marjorie Taylor Greene, R-Ga.

John Hart, CEO of Open the Books, testified that $1 billion could be saved on furniture alone by not renewing leases on government buildings that are set to expire in 2027.

David Marroni, director of physical infrastructure at the U.S. Government Accountability Office, testified that no government agency ‘had a great track record in terms of the utilization’ of their physical headquarters’ footprints.

Marroni said there could be substantial savings in reducing government workspaces.

‘It’s about $8 billion a year on owned and leased office space, so any reduction is going to generate a lot of money,’ he said.

Democrats at the hearing lobbed criticism at President Donald Trump and billionaire Elon Musk, who is leading the DOGE effort, with Stansbury accusing DOGE of being ‘a front’ to support billionaires ‘who are trying to privatize public services.’ 

‘And just this week, we have seen, as Elon Musk is on his exit out of the federal government, he has secured billions of dollars in new contracts across the federal government. Conflict of interest? Yes, absolutely,’ Stansbury said.

The congresswoman claimed that Musk has secured contracts and promises for contracts at the Department of Defense and NASA, and is asking to install SpaceX’s Starlink Wi-Fi at federal agencies. Starlink, which is a subsidiary of Musk-owned SpaceX, was reportedly installed at the White House last month.

‘And we understand that there is the potential to potentially deploy his AI technology across the federal agencies to replace the tens of thousands of federal employees that have recently been illegally fired,’ Stansbury claimed.

As of Tuesday, DOGE claims on its site that it has saved Americans $140 billion, or about $870 per taxpayer.

Fox News Digital’s Andrew Mark Miller and Deirdre Heavey contributed to this report.

A former Food and Drug Administration (FDA) senior staffer is speaking out about problems at the agency under the Biden administration, including diversity, equity and inclusion (DEI), and failures to combat China flooding the U.S. market with illicit vapes after the FDA’s top tobacco official was removed from his position. 

I think many of us had been anticipating it for quite some time, we knew that change was drastically needed at FDA when it came to tobacco control, because tobacco control had really gotten out of control,’ David Oliveira, who recently left the FDA after six years, said in response to FDA chief tobacco regulator Brian King being removed from his post earlier this month. 

‘There were many, many failures in the key core missions for the center that needed dramatic change in new leadership. Many of us, whether it be from public health, consumers, small business owners, industry, including even Senator Dick Durbin, who last year at a hearing said to Brian King, ‘It looks to me like you have fallen down on the job.’ So really it runs the spectrum with the people that are unhappy with what’s gone on recently with the FDA in terms of tobacco regulation.’

One of the most prominent missteps at the FDA over the past few years, according to Oliveira, was the influx of illicit Chinese vapes into the U.S. market, which he says made him feel like a ‘canary in a coal mine’ as he warned about the potential dangers and little was done. 

Although the rate of youths smoking cigarettes is now at an all-time low, according to the CDC, youth use of Chinese vapes has increased dramatically since 2020, as China has become the world’s leading producer of e-cigarettes, often promoting illicit vapes with flavors appealing to children. 

Sales of unauthorized, flavored disposable vapes in the United States amounted to around $2.4 billion in 2024, or 35% of the e-cigarettes from outlets such as convenience stores and supermarkets, Reuters reported.

That compares to sales worth $3.2 billion in 2023 and $2.8 billion in 2022, the data, which comes from market research firm Circana, shows. 

We have set up a regulated system, which most of the American players have said, okay, these are the rules of the road, we will obey them, we will comply, and we expect, we hope that our products will be authorized,’ Oliveira explained. ‘The Chinese have said, well, forget that. There’s huge consumer demand for these products for billions of dollars, and we will shamelessly, recklessly, irresponsibly market these products, dump them on our shores because they know there’s billions of dollars to be had. And then, unfortunately, the FDA was ill-equipped, ill-prepared. Didn’t have the skill to go after and shut that down. And now we have an industry that’s absolutely out of control with these products.’

Oliveira told Fox News Digital that the agency has been delegating too much power to other departments like Border Patrol and Department of Justice rather than using the authority it has to crack down with boots on the ground against China’s market flooding, adding that a ‘lack of focus’ and ‘cavalier attitude’ has left the U.S. behind the 8-ball. 

Oliveira says that the FDA approves or authorizes only about two products a year, which has allowed China to dominate the market. 

Under King, the FDA rejected applications for millions of flavored e-cigarettes, citing insufficient data that the products would help adult smokers. Those rejections have resulted in multiple lawsuits against the FDA from vape makers, including one that was argued before the Supreme Court in December.

Another issue under King, Oliveira explained, was that DEI became a prominent focus that ultimately led to less focus on getting the job in front of them done correctly.

I think we saw a lot more of that once Brian King came in and the fact of the matter is his version of DEI was some of the things that many people don’t find appealing,’ Oliveira said. ‘The idea of virtue signaling or doing it just to be able to wear it on your sleeve and talk about it. So you just do things around the edges like, oh, let’s change and stop using the word grandfathered because of the historical overtones and origins of that term. And then let’s have everyone put their pronouns in their email.’

The FDA recently removed DEI materials from its website amid President Donald Trump signing executive orders to rid the practice from the federal government and instead focus on meritocracy. Oliveira told Fox News Digital that DEI was a distraction from the mission at the FDA. 

‘I think it made some people uncomfortable just because of the focus on it when we knew that our work was so critical to helping people live healthier lives, that there was so much work to be done, that we were behind the 8-ball because of all the mistakes and because of this very fast-moving industry that government will always struggle to keep up with the technology. There was much work to be done. There was so more that we could have been doing that we weren’t doing. So anytime you have anything that you feel like takes your eye off the ball a little bit, that can be frustrating in the workplace for sure.’

Oliveira also told Fox News Digital that the FDA under King in the Biden years was beholden to the ‘crusade’ against menthol cigarettes, led by prominent voices like billionaire Michael Bloomberg, which he says was based more on a ‘paternalistic’ attitude toward the Black community than it was about making a positive difference. 

In recent years, the FDA’s tobacco center has been besieged by criticism from all sides.

Politicians, parents and anti-tobacco groups want the FDA to do more to stamp out unauthorized vaping products that can appeal to teens, many of which are imported from China. Tobacco and vaping companies say the FDA has been too slow to approve newer products for adult smokers — including e-cigarettes — that generally carry much lower risks than traditional cigarettes.

‘King’s crusade against vaping was public health sabotage, fueled by half-truths and a vendetta against flavors that saved lives,’  Jim McCarthy, spokesman for American Vapor Manufacturers, the leading trade association for the independent vape industry which penned a recent scathing op-ed against King, told Fox News Digital in a statement. 

‘He crushed small American businesses, sparked black markets, and ushered in hundreds of new combustible cigarette products. It was a masterclass in hypocrisy: he preached health equity while his policies ravaged marginalized communities by stripping them of safer alternatives to smoking. And while tobacco companies thrived, he sneered at the powerless and never found the simple integrity to tell Americans the truth that vaping is the most effective way to quit smoking and is vastly safer than cigarettes.’

Fox News Digital reached out to the FDA and King for comment. 

The Associated Press and Reuters contributed to this report.

China’s innovation in artificial intelligence is ‘accelerating,’ according to Michael Kratsios, director of the White House Office of Science and Technology. He told Fox News Digital that the United States’ ‘promote and protect’ strategy will solidify its standing as the world’s dominant power in AI.

Kratsios, who served as chief technology officer during the first Trump administration, sat for an exclusive interview with Fox News Digital on Monday.

‘The White House in the first Trump administration redefined national tech policy to focus on American leadership in emerging technologies, and those were technologies like artificial intelligence, quantum computing and 5G, [which] were big back then,’ Kratsios said. ‘The president, at that time, signed the executive order prioritizing U.S. leadership in AI, back in 2019 when people weren’t even talking about it.’

‘He recognized that it was critical for the U.S. to lead in AI,’ Kratsios said. ‘We got the ball rolling on what the U.S. national strategy is and how we would win.’ 

During his first administration, Trump signed the first-ever executive order on AI in 2019. He also took executive action in 2020 to establish the first-ever guidance for federal agency adoption of AI to deliver services to the American people and ‘foster public trust’ in the technology. 

But Kratsios said that when former President Joe Biden took office, the attitude of his administration toward AI shifted to ‘one of fear and one of over-regulation.’ 

‘There was a fixation on what I would call harms, so, spending time and energy thinking about all the things that could go wrong with this technology, versus having a balanced approach, where you try to minimize things that could go poorly, and more importantly, look at ways this technology can transform America for the better,’ Kratsios explained, noting that Biden officials were ‘harms focused,’ which he said was ‘manifested in a lot of the policies that they did, in the way that they were very reticent to applying some of this technology to a lot of the issues that government faced, like how you make agencies more efficient.’ 

Kratsios reflected on Trump’s AI message during the campaign, saying he ‘made it very clear that we as a country need to win and be dominant in artificial intelligence.’ 

‘And he acted very decisively,’ Kratsios said, pointing to Trump’s move on his third day in office to direct him and other officials to develop an AI action plan. 

‘It was a way to review everything that had been done under the Biden administration and turn the page with an agenda that’s focused on sustaining and ensuring continued U.S. leadership in this particular technology, and that’s what we’ve been working on,’ Kratsios said. 

Kratsios explained that the U.S. is ‘the leader’ in AI, specifically when it comes to the ‘three layers of technology,’ which he said are chips or high-end semiconductors, the model itself and the application layer. 

‘If you look at all three of those layers, the U.S. is the leader,’ Kratsios said. ‘We have the best chips. We have the best models. And we have the best applications to date.’ 

But he warned that the Trump administration is ‘seeing the velocity of innovation’ from China.

‘We’re seeing the speed at which the PRC is catching up with us is actually accelerating,’ he explained. 

Kratsios referenced DeepSeek, which was released by a Chinese firm earlier in 2025 and develops large language models.

‘I think what DeepSeek revealed is that the Chinese continue to make progress and are trying really hard to catch up with us on those three layers,’ Kratsios said. 

But the key to maintaining U.S. dominance in the space is the Trump administration’s ‘promote and protect’ strategy, Kratsios explained. 

Kratsios said the Trump administration will ‘promote’ by continuing to accelerate the development of technology and encouraging more Americans, American companies and countries around the world to use that technology. 

‘And then on the protect side, what is it that the U.S. has which could be useful to the PRC to accelerate their efforts in AI? We protect that technology from access by the Chinese,’ Kratsios said, pointing to high-end semiconductors and chips that the Chinese ‘shouldn’t have access to, because that would make it easier for them to accelerate their efforts.’ 

‘How do we speed up innovation here at home and slow down our adversaries?’ Kratsios said. 

The answer, Kratsios said, is AI research and development that continues to drive innovation. He also said the Trump administration needs to continue to remove regulations and barriers to AI innovation, and also prepare and train Americans in the workforce to ‘better leverage this technology.’ 

Kratsios said another step is ensuring that foreign allies partner with the U.S. to ‘make sure that they are also keeping the PRC at bay and that they continue to use the American AI stack.’ 

‘So, if you’re any country in the world that wants to use AI, you’d want to use an American stack,’ he explained. ‘So we should make it as easy as possible in order for us to export our technology to like-minded partners.’ 

As for China, Kratsios said the PRC ‘is probably one of the most sophisticated surveillance states in the world, and that is underpinned by their own artificial intelligence technology.’ 

‘I think the goal of the United States should be to continue to be the dominant power in AI. And there are certain inputs to the development of AI which we can control, and which we would not want the PRC to have access to,’ he said. ‘And the most important pieces are sort of these very high-end chips that they can use to train models, and also certain equipment that would allow them to build their own very high-end chips.’ 

He added: ‘And if we can kind of continue to make it challenging for them to do that. I think it’ll be the benefit of the U.S.’ 

Looking ahead, Kratsios echoed the president, saying the U.S. is in the ‘golden age’ and that this special moment in time is ‘underpinned by unbelievable science and technology.’ 

‘We want to put an American flag on Mars,’ Kratsios said. ‘We want to fly supersonic again. We want drones to be delivering packages around the world. We want AI to be used by American workers to allow them to do their jobs better, safer and faster.’ 

He added: ‘We have an opportunity to all these things, like so much more, in these four years. And this office is going to be the home for driving that innovation across so many technological domains.’ 

President Donald Trump and Defense Secretary Pete Hegseth vowed to hike the Pentagon budget to over $1 trillion for the first time ever. 

Speaking to reporters alongside Israeli Prime Minister Benjamin Netanyahu, Trump said the upcoming budget would be ‘in the vicinity’ of $1 trillion, a major boost from this year’s $850 billion budget. 

‘COMING SOON: the first TRILLION dollar @DeptofDefense budget,’ Hegseth posted on X. 

He said Trump is ‘is rebuilding our military – and FAST.’

The budget for all national security programs, including the Department of Defense, nuclear weapons development and other security agencies, is at $892 billion for this year. 

Moving to a $1 trillion Pentagon budget would be a 12% increase over current levels. 

But the $1 trillion budget idea comes just as the Pentagon has moved to cut 8% each year for five years from each program to reinvest in modernization. The department is also planning to slash tens of thousands from its civilian workforce and consolidate bases across the world. 

‘We’re going to be approving a budget, and I’m proud to say, actually, the biggest one we’ve ever done for the military,’ he said. ‘$1 trillion. Nobody has seen anything like it.

‘We are getting a very, very powerful military. We have things under order now.’

White House officials are expected to unveil their budget proposal for fiscal year 2026 later this spring before Congress hashes out the appropriations process. 

Even a $1 trillion budget would not put the U.S. at Trump’s stated target for NATO countries to spend on defense: 5%. 

But the president said the cash influx would be used to kickstart production on new equipment and technologies. 

‘We’ve never had the kind of aircraft, the kind of missiles, anything that we have ordered,’ he said. ‘And it’s in many ways too bad that we have to do it because, hopefully, we’re not going to have to use it.’

The Trump administration recently unveiled a Boeing contract for the Air Force’s sixth-generation fighter jet, the F-47, which the service branch expects to cost around $20 billion from 2025 to 2029. 

‘We know every other plane,’ Trump said. ‘I’ve seen every one of them and it’s not even close. This is a next level.’

An announcement on the Navy’s next-generation fighter jet, F/A-XX, has been stalled, while chief of naval operations Adm. James Kirby told reporters Monday work on the new jet’s contract was taking place at ‘secretary-level and above.’ 

Secretary of Defense Pete Hegseth on Tuesday said the U.S. will take back the Panama Canal from ‘China’s influence’ as Washington tries to reassert control over the major trade route. 

‘The United States of America will not allow communist China or any other country to threaten the canal’s operation or integrity,’ he said during a press event from the Central American nation. ‘To this end, the United States and Panama have done more in recent weeks to strengthen our defense and security cooperation than we have in decades.

‘Together we will take back the Panama Canal from China’s influence,’ he added.

Panama has repeatedly rejected the Trump administration’s claims that China effectively controls the canal as it operates two major ports on either end of the waterway. 

However, the Central American nation withdrew from its 2017 Belt and Road Initiative agreements with Beijing earlier this year in a signal that Panama has chosen to side with the Trump administration in this geopolitical spat.

Hegseth laid out a litany of joint exercises, operations and the general presence of the U.S. military in and around the canal in a move to counter China, though Fox News Digital could not immediately reach the Pentagon to confirm whether this signified an increase in U.S. presence in the region.

‘Our relationship with Panama, especially our security relationship, will continue to grow in the months and years ahead,’ Hegseth said. ‘Our relationship is growing in part to meet communist China’s rising challenges.’

The defense secretary said China-based companies continue to install ‘critical infrastructure’ in the canal, which gives China the ‘potential’ ability to ‘conduct surveillance.’

‘This makes Panama and the United States less secure, less prosperous, less sovereign,’ he added.  

‘I want to be very clear. China did not build this canal. China does not operate this canal, and China will not weaponize this canal,’ Hegseth said.

The Chinese embassy in D.C. did not immediately respond to Fox News Digital’s request for comment. 

House Republicans are divided over how to proceed on a massive piece of legislation aimed at advancing President Donald Trump’s agenda as a possible vote on the measure looms Wednesday afternoon.

Fiscal hawks are rebelling against GOP leaders over plans to pass the Senate’s version of a sweeping framework that sets the stage for a Trump policy overhaul on the border, energy, defense and taxes.

Their main concern has been the difference between the Senate and House’s required spending cuts, which conservatives want to offset the cost of the new policies and as an attempt to reduce the national deficit. The Senate’s plan calls for a minimum of $4 billion in cuts, while the House’s floor is much higher at $1.5 trillion.

‘The problem is, I think a lot of people don’t trust the Senate and what their intentions are, and that they’ll mislead the president and that we won’t get done what we need to get done,’ Rep. Rich McCormick, R-Ga., told reporters on Tuesday. ‘I’m a ‘no’ until we figure out how to get enough votes to pass it.’

McCormick said there were as many as 40 GOP lawmakers who were undecided or opposed to the measure.

A meeting with a select group of holdouts at the White House on Tuesday appeared to budge a few people, but many conservatives signaled they were largely unmoved.

‘I wouldn’t put it on the floor,’ Rep. Chip Roy, R-Texas, told reporters after the White House meeting. ‘I’ve got a bill in front of me, and it’s a budget, and that budget, in my opinion, will increase the deficit, and I didn’t come here to do that.’

Senate GOP leaders praised the bill as a victory for Trump’s agenda when it passed the upper chamber in the early hours of Saturday morning.

Trump urged all House Republicans to support it in a Truth Social post on Monday evening.

Meanwhile, House Republican leaders like Speaker Mike Johnson, R-La., have appealed to conservatives by arguing that passing the Senate version does not in any way impede the House from moving ahead with its steeper cuts.

The House passed its framework in late February.

Congressional Republicans are working on a massive piece of legislation that Trump has dubbed ‘one big, beautiful bill’ to advance his agenda on border security, defense, energy and taxes.

Such a measure is largely only possible via the budget reconciliation process. Traditionally used when one party controls all three branches of government, reconciliation lowers the Senate’s threshold for passage of certain fiscal measures from 60 votes to 51. As a result, it has been used to pass broad policy changes in one or two massive pieces of legislation.

Passing frameworks in the House and Senate, which largely only include numbers indicating increases or decreases in funding, allows each chamber’s committees to then craft policy in line with those numbers under their specific jurisdictions. 

Members of the conservative House Freedom Caucus have pushed for Johnson to allow the House GOP to simply begin crafting its bill without passing the Senate version, though both chambers will need to eventually pass identical bills to send to Trump’s desk.

‘Trump wants to reduce the interest rates. Trump wants to lower the deficits. The only way to accomplish those is to reduce spending. And $4 billion is not – that’s … anemic. That is really a joke,’ Rep. Eric Burlison, R-Mo., told reporters.

He said ‘there’s no way’ the legislation would pass the House this week.

The measure will likely go through the House Rules Committee, which acts as the final gatekeeper for most legislation getting a chamber-wide vote.

However, tentative plans for a late-afternoon House Rules Committee meeting on the framework, which would have set up a Wednesday vote, were scrapped by early evening on Tuesday.

The legislation could still get a House-wide vote late on Wednesday if the committee meets in the morning.

As for the House speaker, he was optimistic returning from the White House meeting on Tuesday afternoon.

‘Great meeting. The president was very helpful and engaged, and we had a lot of members whose questions were answered,’ Johnson told reporters. ‘I think we’ll be moving forward this week.’

Fox News’ Ryan Schmelz and Aishah Hasnie contributed to this report.