January 13

Senate passes DEFIANCE Act allowing deepfake victims to sue creators for $150,000 in damages

The Senate passes the Disrupt Explicit Forged Images and Non-Consensual Edits Act — the DEFIANCE Act — by voice vote, sending it to the House. The law creates a federal civil cause of action for victims of non-consensual AI-generated sexual imagery, allowing suits for up to $150,000 in statutory damages plus attorney's fees. The bill is authored by Sen. Dick Durbin and supported by both parties. It responds to a surge in AI-generated intimate images targeting women, celebrities, and public figures. President Trump signs it into law. The DEFIANCE Act is the first federal law specifically targeting AI-generated content used to harm individuals.

Congress Races to Pass Six Remaining FY2026 Spending Bills Before January 27 Shutdown Deadline

As of Jan. 13, 2026, Congress faced a midnight Jan. 27 deadline to fund the six remaining federal agencies still operating under a continuing resolution. Six full-year appropriations bills — covering Defense, Labor-HHS-Education, Homeland Security, Transportation-HUD, Financial Services, and State-Foreign Operations — remained unfinished. Congress ultimately missed the deadline, triggering a partial government shutdown on Jan. 27, 2026.

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Supreme Court Hears Oral Arguments in Little v. Hecox and West Virginia v. B.P.J. on Transgender Athlete Bans

On Jan. 13, 2026, the Supreme Court held over three hours of oral arguments in two consolidated transgender athlete cases: Little v. Hecox (Idaho) and West Virginia v. B.P.J. The cases challenge state laws banning transgender girls and women from competing in girls'/women's sports. The Trump administration sided with the states. Conservative justices signaled readiness to uphold the bans; a decision is expected by June 2026.

Senate Unanimously Passes DEFIANCE Act Allowing Deepfake Victims to Sue for Up to $150,000

On Jan. 13, 2026, the US Senate unanimously passed the DEFIANCE Act (S.1837), enabling victims of nonconsensual AI-generated sexually explicit deepfakes to sue creators and distributors for up to $150,000 per violation ($250,000 if linked to assault, stalking, or harassment). Sponsored by Sens. Dick Durbin (D-IL) and Lindsey Graham (R-SC), the bill was prompted in part by the Grok AI scandal. The bill was sent to the House after passage.

Trinity Health cuts 10.5% of billing staff projects $1.5 billion loss from government policy changes

Trinity Health, a Michigan-based hospital system with facilities in other states, announced it would cut 10.5% of jobs within its revenue cycle department in January 2026. The system said it expects to lose $1.5 billion due to "recent and future government policy changes." The decision to outsource many non-patient-facing revenue cycle jobs to an external partner came as the system faced low reimbursement rates that don't cover the cost of care, critical staffing shortages, and the rising cost of care for underinsured and uninsured patients. One of Trinity Health's hospitals, St. Mary's Sacred Heart Hospital in rural northeast Georgia, announced in October 2025 that it was closing its maternity unit. A Trinity Health spokesperson said "more reductions" are being considered by the federal government and it is "not possible to simply absorb such a significant financial impact without making thoughtful, forward-thinking changes."

DOJ Civil Rights Division leaders resign over blocked Minneapolis ICE shooting investigation

At least six leaders of the DOJ Criminal Section's Civil Rights Division resigned after Assistant AG Harmeet Dhillon refused to open a civil rights investigation into the Jan. 7 ICE killing of Renee Good. The section normally investigates all fatal law enforcement shootings. Dozen-plus total departures spanned both Washington's Civil Rights Division and the Minneapolis U.S. Attorney's office. Veterans who served across administrations cited DOJ priorities being reshaped to shield ICE from accountability.

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Trump Announces Federal Funding Cutoff for Sanctuary Cities Starting February 1

President Trump announced on Jan. 13, 2026 that federal payments to sanctuary cities would end starting February 1. Trump made the announcement at the Detroit Economic Club and posted on Truth Social. He did not specify which funds or exactly which cities would be targeted; the DOJ published a list of 30+ jurisdictions. Courts had twice previously blocked similar Trump-era funding cuts. Legal experts noted the federal government cannot use funding to coerce state and local governments on law enforcement cooperation.

Six Minnesota Federal Prosecutors Resign Over DOJ Pressure to Investigate Renee Good's Widow

Six federal prosecutors in the Minnesota U.S. Attorney's office—including Joseph Thompson and Melinda Williams—resigned after DOJ leadership pressured them to investigate Renee Good's widow, Becca Good, for alleged ties to activist groups. The prosecutors objected that investigating a grieving widow for lawful association was improper and that DOJ had cut state and local authorities out of the Renee Good shooting probe. Minnesota Democrats called the departing prosecutors "heroes."

December 2025 CPI Holds at 2.7% as DOJ Opens Criminal Probe Into Fed Chair Powell Over Congressional Testimony

The BLS released December 2025 CPI data on January 13, 2026, showing headline inflation at 2.7% year-over-year and food prices surging 0.7% month-over-month — the largest monthly food increase in 27 months. Simultaneously, the DOJ had served grand jury subpoenas to the Federal Reserve on January 9, 2026, opening a criminal investigation of Chair Jerome Powell over his June 2025 congressional testimony about a $2.5 billion Fed headquarters renovation. Powell said the threat of criminal charges was an attempt to pressure the Fed to lower interest rates, framing it as an assault on central bank independence.

Trump Declares Inflation "Defeated" in Detroit Affordability Speech Despite 2.7% CPI, Proposes 10% Credit Card Rate Cap and $200B Housing Bonds

President Trump spoke at the Detroit Economic Club on January 13, 2026, claiming inflation was "defeated" and touting an economic boom — while December 2025 CPI data released the same day showed inflation holding at 2.7%. Trump proposed banning institutional investors from buying single-family homes, a federal purchase of $200 billion in housing bonds to lower mortgage rates, a 10% cap on credit card interest rates for one year, and health care affordability measures including direct-to-consumer insurance subsidies. Critics noted the speech conflicted with the $3-meal controversy and ongoing tariff-driven food price increases.