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AEI's weekly digest of top commentary and scholarship on the issues that matter most

Constitutional Challenges

The Trump Administration and the Supreme Court

April 26, 2025

The Trump administration’s broad assertions of authority, lack of candor, and bad faith before federal courts, especially over the Alien Enemies Act and the case of Kilmar Abrego Garcia, have undermined the Supreme Court’s willingness to accord the government’s actions the presumption of regularity. Jack Landman Goldsmith assesses these legal issues and their impact on the Court’s traditional relationship with the solicitor general as his first oral argument looms on May 15.

 

 

President Donald Trump has also pushed legal boundaries this week by threatening to fire Federal Reserve Chair Jerome Powell. Former White House Counsel Peter J. Wallison explains why the Supreme Court would be unlikely to allow the president to override statutory protections of the central bank’s independence.

 

Trump’s comments on Powell only added to the stock market turbulence and economic headwinds generated by raised tariffs. In a new AEI Economic Perspectives report, Kyle Pomerleau and Erica York provide a comprehensive overview of the negative economic consequences of increasing US tariffs.

 

Their findings only underline that tariffs cannot accomplish the president’s stated objectives. Writing in Financial Times, Chris Miller shows why this is especially true for tariffs on microchips and semiconductors, which would only undermine efforts to reduce America’s dependence on China.

 

In response to mismanagement and leadership failures that have threatened the integrity and quality of American higher education, university trustees are increasingly being empowered as agents of reform on campuses across the country. A new edited volume from Preston Cooper and Lindsey Burke featuring contributions from leading scholars and reformers provides trustees with concrete guidance on how they can properly fulfill their new roles to restore viewpoint diversity and deliver quality and value for students.

Asylum Seekers and the Rise in Homelessness

Between 2022 and 2024, the number of people residing in homeless shelters in the United States increased 43 percent, reversing a gradual decline over the past 16 years. Three-quarters of this rise was concentrated in Chicago, Denver, Massachusetts, and New York City, where large inflows of new immigrants seeking asylum were housed in emergency shelters. In a new National Bureau of Economic Research working paper, Bruce D. Meyer and coauthors use local government direct estimates and indirect methods based on demographic changes to estimate the degree to which asylum seekers contributed to this increase. Their findings indicate asylum seekers accounted for about 60 percent of the rise in sheltered homelessness during this period, suggesting that economic conditions or housing shortages were not the primary drivers. 

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QUOTE OF THE WEEK

Many of Trump’s supporters have defended the trade war by arguing that it is a classic case of concentrated benefits and diffuse costs: Manufacturing workers will benefit a lot, and the rest of us will suffer a little. This is wrong on two counts. Trump’s trade war is a lose-lose proposition. And the losers—including manufacturing workers—will lose a lot more than Trump’s defenders are prepared to admit.

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