Federal Programs, Grants, and Domestic Policy
Labor – YouthBuild funding and AI literacy requirements
The Labor Department announced up to $98 million in available funding for YouthBuild pre‑apprenticeship programs targeting high‑demand fields such as construction, clean energy, health care, IT, and manufacturing. The department expects to fund about 57 grants, generally $1–2 million each. For the first time, DOL set a goal for the share of participants who enter a Registered Apprenticeship within one year of exit. Grant applicants must include AI literacy skills in the education component and are encouraged to integrate AI literacy into occupational skills training. Applications from charter schools and organizations partnering with them will receive priority in grant selection.
HUD financial oversight and payment errors
HUD reported in its FY 2025 Agency Financial Report that it identified over $5 billion in potential payment errors during the Biden administration. The department disclosed a material weakness in financial oversight and said it will implement new processes to track how public housing authorities and HUD‑funded grantees spend federal funds.
Veterans cemeteries grants
The Department of Veterans Affairs reported providing more than $77 million in FY 2025 grants to expand or improve 20 state Veterans cemeteries and to establish one new cemetery in Alaska. The establishment grant of $16.7 million will help create the Interior Alaska Veterans Cemetery in Fairbanks, expected to be Alaska’s first state Veterans cemetery. VA said grant‑funded cemeteries interred over 43,700 Veterans and eligible family members in FY 2025, about 25% of total annual interments nationwide. Since 1980, VA has awarded over $1.1 billion to 124 cemeteries in 47 states, 14 tribal nations, and three territories.
Counter‑UAS funding ahead of the 2026 World Cup
DHS and FEMA announced a $250 million allocation through the Counter‑Unmanned Aircraft Systems (C‑UAS) Grant Program to the 11 FIFA World Cup 2026 host states and the National Capital Region. The program will provide $500 million over two years, with the remaining $250 million to be distributed to all states and territories in 2026 with an expanded focus on detection and response capabilities. FEMA said the grants, created under the One Big Beautiful Bill Act of 2025, aim to bolster state and local ability to detect, track, and respond to hostile or unauthorized drones during major events and in everyday operations.
Economic Indicators, Housing, and Markets
Home prices
FHFA’s House Price Index showed U.S. home prices rose 0.4% in October 2025 from September and were 1.7% higher than a year earlier. FHFA plans to release the next HPI report on January 27, 2026, with data through November.
Labor market – unemployment estimate
The Chicago Federal Reserve estimated the U.S. unemployment rate at 4.6% in December 2025, unchanged from the official November reading, which economists have said may have been affected by technical issues linked to the federal government shutdown. The Bureau of Labor Statistics is scheduled to publish the official December figure on January 9, 2026.
Bond market performance and outlook
Reuters reported that U.S. bonds posted their best annual returns since 2020 in 2025, with the Morningstar US Core Bond index returning about 7.3% for the year, helped by 75 basis points of Federal Reserve rate cuts and a resilient economy. Analysts cited expectations of smaller Fed cuts in 2026 and potential upward pressure on long‑term Treasury yields from fiscal stimulus and higher government debt as reasons total returns may be harder to match in 2026.
U.S. stock indexes
According to the Associated Press, major U.S. stock indexes edged slightly lower on December 30 as trading for 2025 neared year‑end. The S&P 500 slipped about 0.1%, while the Dow Jones Industrial Average and Nasdaq each fell around 0.2%.
Sanctions, National Security, and Immigration Enforcement
Sanctions on Iran–Venezuela weapons trade
The Treasury Department’s Office of Foreign Assets Control (OFAC) announced sanctions targeting 10 individuals and entities in Venezuela and Iran involved in unmanned aerial vehicle (UAV) trade between the two countries. Designated parties include Venezuela’s Empresa Aeronautica Nacional SA and its chair Jose Jesus Urdaneta Gonzalez, cited for facilitating Iran–Venezuela UAV transactions.
Separately, OFAC designated three Iran‑based persons connected to procurement of missile‑related chemicals for Parchin Chemical Industries (PCI), including Mostafa Rostami Sani and associated companies. All property and interests in property of these designated persons within U.S. jurisdiction, or in the possession or control of U.S. persons, are blocked, and U.S. persons are generally prohibited from dealing with them.
State Department on Iran’s weapons programs
The State Department issued a complementary statement saying the sanctions were imposed under Executive Orders 13382 and 13949, describing the designations as part of U.S. efforts to disrupt Iran’s proliferation of combat UAVs to Venezuela and curb procurement of missile‑related items in violation of UN restrictions.
ICE enforcement actions
DHS and ICE highlighted the year‑end removal of several noncitizens described as violent criminal offenders, including individuals convicted of child rape, serious domestic violence, and alien smuggling. The agency named five individuals—Artemio Gabriel‑Perez, Julian Ramos‑Vicente, Panfilo Padilla‑Garcia, Muhammad Baloch, and Gabino Huerta‑Navarrete—as examples of cases completed in different parts of the United States, and said it plans to continue such targeted enforcement operations in 2026.
Counter‑UAS security funding
The $250 million FEMA C‑UAS grant allocation announced the same day was also framed as part of DHS efforts to strengthen airspace security and counter‑drone capabilities for both major events like the 2026 World Cup and routine state and local security operations.
Legislation, Vetoes, and Federal Oversight
Veto of H.R. 504 – Miccosukee Reserved Area Amendments Act
The White House announced that President Trump vetoed H.R. 504, the Miccosukee Reserved Area Amendments Act, returning it to the House of Representatives without approval. The bill would have required the Secretary of the Interior, in consultation with the Miccosukee Tribe, to safeguard structures in the Osceola Camp from flooding. Osceola Camp lies inside Everglades National Park but outside the tribe’s reserved area defined in the 1998 Miccosukee Reserved Area Act.
The administration’s veto message argued:
- Existing structures at Osceola Camp are not over 50 years old and do not meet criteria for listing in the National Register of Historic Places.
- A prior plan to protect and replace unauthorized infrastructure at the camp was estimated to cost up to $14 million.
- The bill was characterized as mandating federal spending on what the administration described as a special‑interest project, and the message also cited the tribe’s alleged obstruction of the administration’s immigration policies.
Veto of H.R. 131 – Arkansas Valley Conduit financing
In a separate statement, the White House said H.R. 131 was also vetoed. The bill would have modified financing terms for the Arkansas Valley Conduit (AVC) water project by extending the federal repayment period from 50 to 75 years and cutting the applicable interest rate in half. According to administration figures, more than $249 million has already been spent on the AVC, with total project costs estimated at about $1.3 billion. The veto reflects administration opposition to altering existing repayment terms and interest costs for the project.
HUD financial controls
HUD’s FY 2025 financial report, referenced above, formally disclosed a material weakness in its oversight of payments and committed to new tracking processes for how grantees and local housing agencies use federal dollars.
Defense, Military Community, and Federal Contracts
DoD contracts
The Pentagon published its routine “Contracts for Dec. 30, 2025” announcement summarizing new contract awards and modifications across multiple defense programs and vendors.
Red Cross volunteer in Poland
A Defense Department feature profiled a Vietnam‑era “Donut Dolly” Red Cross volunteer who continues service today by supporting operations with the Red Cross in Poland.
National Guard security in Washington, D.C.
Another DoD story highlighted National Guard members patrolling in Washington, D.C., describing their role in helping keep the district secure while interacting with residents and visitors in public‑facing assignments.
International Developments and U.S. Diplomacy
Saudi airstrikes in Yemen and rift with UAE
Reporting by the Associated Press via PBS NewsHour described Saudi airstrikes on the Yemeni port city of Mukalla on December 30 after what Saudi Arabia said was a weapons shipment from the United Arab Emirates for Southern Transitional Council (STC) separatist forces. A Saudi military statement said ships arriving from Fujairah (UAE) had disabled tracking devices and unloaded weapons and combat vehicles, which Riyadh labeled an imminent threat.
The UAE denied sending weapons for the separatists but acknowledged shipping vehicles for its own forces and later announced plans to withdraw remaining troops from Yemen, citing safety and operational concerns. Anti‑Houthi Yemeni factions not aligned with the STC declared a state of emergency and suspended cooperation with the UAE‑backed forces, indicating risk of a new front within the anti‑Houthi coalition.
U.S. diplomatic calls with Saudi Arabia and the UAE
The State Department noted that Secretary of State Marco Rubio held separate calls with Saudi Foreign Minister Prince Faisal bin Farhan Al Saud and UAE Deputy Prime Minister and Foreign Minister Sheikh Abdullah bin Zayed Al Nahyan. The department issued brief readouts recording that the calls took place; they were framed as part of ongoing U.S. engagement with both governments on regional issues.
Iran–Venezuela sanctions and regional security
The Treasury and State Department sanctions actions described above were also presented as part of broader U.S. efforts to counter Iranian weapons proliferation and address regional security concerns tied to Iran’s UAV and missile activities.