The Latest: Appeals court rules Trump policy illegally banned transgender troops from military

A Trump administration policy illegally banned transgender troops from military service, a divided panel of federal appeal court judges ruled on Monday.

The majority opinion by a three-judge panel from the U.S. Court of Appeals for the District of Columbia circuit upholds a March 2025 ruling by U.S. District Judge Ana Reyes in Washington, D.C. Reyes concluded that President Donald Trump’s executive order to exclude transgender troops from military service likely violates their constitutional rights.

Meanwhile, the energy price spike triggered by the Iran war has seeped into the price of bonds that help fund the U.S. government, causing interest rates to climb in ways that are worsening affordability pressures, hampering economic growth and creating a new risk for Republicans in November’s midterm elections.

Also, the United States said Monday that it bombed radar and drone sites in Iran after Tehran shot down an American drone over the weekend. Iran then said it launched a strike of its own, and Kuwait reported incoming fire.

The nominal ceasefire between Iran and the U.S. has been repeatedly tested with such back-and-forth attacks, even as officials from both countries try to negotiate an end to the war.

Here's the latest:

Asked if Vance would be a great president, second lady says he’d be great at anything

The second lady told ABC News of her husband: “I think he would make a great anything he’d like to be.”

She said she’d been asked a couple of times about misconceptions of the vice president, and said, “I think people don’t understand what a fundamentally gentle person he is.”

Second lady won’t say if she wants vice president to seek the White House in 2028

Asked during an interview with ABC News if she’d like to see Vice President JD Vance run for president, second lady Usha Vance offered a careful dodge.

“I’m not a particularly ambitious person,” she said, after a pause. “I would like to see him happy.”

The second lady added of her husband, “I would like to see him making contributions that matter. And whatever form that takes is a form that I’ll be supportive of.”

Trump reconsidering pursuing $1.8B fund meant to compensate his allies

That’s according to a person familiar with the matter who insisted on anonymity to discuss the president’s thinking.

The potential retreat is a recognition of the legal setbacks the fund has encountered since it was announced two weeks ago, as well as a mounting political backlash from Republicans concerned by a perceived lack of oversight of the money disbursement and the potential for payouts to participants in the Jan. 6, 2021, riot at the U.S. Capitol.

The Justice Department has said it would temporarily pause its implementation to comply with a court order.