Democrats face a significant challenge in Michigan's Senate primary, with U.S. Rep. Haley Stevens competing against progressive Abdul El-Sayed. The tight race, still unresolved early Wednesday, tests the party's willingness to move away from moderate candidates. Winning this seat is crucial for Democrats to regain control of the Senate. Meanwhile, Republicans chose their nominee for Michigan governor, going with Trump-endorsed John James over wealthy outsider Perry Johnson. The American Israel Public Affairs Committee is trying to remain influential, spending heavily in Michigan to support Stevens. In Virginia, Democrats aim to recover seats after a failed redistricting effort. Primaries in other states will shape November's matchups.

A federal appeals court has ruled that the Trump administration improperly ended a multi-billion-dollar program for clean energy projects. This decision supports a lower court's ruling that nonprofits chosen to run the Biden-era effort should have access the funds. The ruling is temporarily on hold, allowing the Environmental Protection Agency time to appeal to the Supreme Court. The Greenhouse Gas Reduction Fund, known as a "green bank," was designed to finance small energy projects. The Trump administration accused the nonprofits of mismanagement and fraud, freezing the funds. The groups denied wrongdoing and sued, claiming legal violations.

A Chicago-based social enterprise is buying the Hawthorn Crossings strip mall in north Minneapolis. The company, Chicago Trend, aims to build local wealth and support community development in a diverse, low-income neighborhood. CEO Lyneir Richardson has led a crowdfunding campaign, inviting residents to invest at least $1,000. He wants the strip mall to be 49% community-owned, believing local ownership will empower the area. Chicago Trend plans to fully lease the property and expects a significant return on investment by 2036. Some community members are skeptical, but Richardson remains confident in the project's potential.

Key senators have unveiled a short-term spending bill to avoid a government shutdown during the middle of campaign season. The bill unveiled Sunday would keep federal agencies funded past the midterm elections, through Dec. 11. The Senate is likely to vote on the measure before leaving Washington at the end of the week for its traditional August recess. Many lawmakers want to spend the coming weeks shoring up their reelection prospects rather than working in the nation’s capital. By extending government funding now, lawmakers can use the ensuing months to work out their differences on funding for the full year.

The Trump administration is preparing to ramp up funding by hundreds of millions of dollars for programs designed to counter China’s growing influence worldwide. It comes after having put a halt to many of those initiatives last year during a flurry of budget and personnel cuts. The administration notified Congress late last week that it intends to spend $175.8 million to replace outdated and aging undersea telecommunications cables in the Caribbean and Central America to prevent China from moving in. The Associated Press obtained a copy of the notification Monday. The funding appears to be part of a broader push to restore support for initiatives aimed at blunting Chinese influence globally that would cost hundreds of millions of dollars more.

The House adopted a Republican-only $95 billion budget proposal, a long-shot effort to fund the Iran war and other White House priorities. Speaker Mike Johnson worked Wednesday to push it over objections from Democrats and some GOP holdouts as priority before the midterm elections. The package includes $73 billion for the Pentagon and other national security needs, $12 billion for farmers struggling under President Donald Trump’s tariffs and $10 billion for voting law changes that are a Trump priority. Democrats argued the money should be spent at home, particularly on efforts to lower costs for Americans.

Defense Secretary Pete Hegseth said the U.S. war against Iran has cost $37.5 billion so far. Hegseth is facing questions and protests at a Senate hearing ahead over the U.S. war against Iran. Hegseth and other officials are appearing as Republicans push a $95 billion budget package to fund the military, along with aid to farmers and voting law changes that are top White House priorities. Their appearance comes after it was announced that three more American service members have died in the conflict, bringing the death toll to 17. The Pentagon also disclosed that more than 100 have been injured. Hegseth said the funds are “urgent, necessary.” But Sen. Patty Murray, the top Democrat on the panel, said the war is “spiraling out of control.”

President Donald Trump has endorsed MyPillow founder Mike Lindell for Minnesota governor, praising him as “one of America’s greatest and most hard working Patriots.” Lindell has a national profile from his TV advertising campaign and he's been one of Trump’s most outspoken supporters, echoing the Republican president’s false claims his 2020 election defeat to Democrat Joe Biden was fraudulent. Trump posted Wednesday online, “Mike will be SPECTACULAR!!!" Trump says Lindell “loves Minnesota” and “wants to bring it back from oblivion and embarrassment.” Trump has accused outgoing Democratic Gov. Tim Walz of allowing rampant fraud in federal spending on childcare, which Walz disputes. Lindell's Republican rivals avoided criticizing Trump's choice. Minnesota's primaries are Aug. 11.

House Republicans have unveiled a $95 billion plan focused on boosting defense, aiding farmers and enacting stricter voter registration rules. The package would be a sequel to the massive tax and spending cut bill President Donald Trump signed into law last year. It’s a long-shot undertaking that was narrowed to address concerns from some GOP members about how it would be paid for and from others about adding to the deficit. The House is expected to vote on a budget resolution as soon as next week, but debate and votes on a final package would not occur until the heat of the election season. Democrats are expected to overwhelmingly oppose whatever final product emerges.