Minimum Competence - Daily Legal News Podcast
Minimum Competence
Legal News for Mon 1/12 - Trump Migrant Parole Rollback Stymied, Indonesia Bans Grok, Treasury Braces for Tariff Refunds and Powell Served with Subpoena
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Legal News for Mon 1/12 - Trump Migrant Parole Rollback Stymied, Indonesia Bans Grok, Treasury Braces for Tariff Refunds and Powell Served with Subpoena

Judge blocking Trump’s migrant parole rollback, Indonesia banning Grok, Powell subpoenaed, and the Treasury prepping for possible tariff refunds

This Day in Legal History: Hattie Wyatt Caraway Elected to Senate

On January 12, 1932, Hattie Wyatt Caraway of Arkansas became the first woman elected to the United States Senate in her own right, marking a milestone in American legal and political history. Initially appointed to her late husband Thaddeus Caraway’s Senate seat, she was widely expected to serve only as a placeholder until a male successor could be elected. Instead, Caraway defied expectations by entering the special election and winning, quietly but firmly asserting her independence. Her victory came just over a decade after the ratification of the 19th Amendment, which granted women the right to vote and laid the groundwork for their broader participation in political life.

Caraway’s campaign was bolstered by the support of Louisiana Senator Huey Long, whose populist style and energetic barnstorming helped draw attention to her candidacy. Despite being soft-spoken and reserved on the Senate floor, Caraway developed a reputation for diligence and loyalty to her constituents. She went on to win a full term later that year, becoming the first woman to do so and serving in the Senate until 1945.

Her election symbolized a shift in legal and cultural attitudes toward women in government roles. While women had begun entering state legislatures and the House of Representatives, the Senate had remained all-male until Caraway’s election. Her success challenged deeply rooted assumptions about women’s capacity for leadership and helped open the door for future female senators. She focused much of her legislative work on issues affecting veterans, farmers, and rural communities.


U.S. District Judge Indira Talwani announced she would block the Trump administration’s attempt to terminate temporary legal status for 10,000 to 12,000 migrants from seven Latin American countries. These individuals had entered the U.S. under family reunification parole programs that allowed them to live legally with relatives while waiting for visa approval. The Department of Homeland Security had moved to cancel the programs, which were launched or updated during the Biden administration, arguing they were being misused to bypass regular immigration protocols.

Judge Talwani criticized the government for failing to provide proper legal notice to the affected migrants, many of whom are children, and emphasized that the U.S. must also follow the law. The plaintiffs’ attorney called the government’s move harmful and disruptive, especially to families and school-aged children. A Justice Department lawyer argued that the administration had the legal authority to revoke parole.

The case is part of a broader legal battle over Trump’s efforts to dismantle humanitarian parole programs initiated under President Biden, which had provided temporary protection to hundreds of thousands of migrants. Talwani had previously issued rulings blocking similar rollbacks, but higher courts overturned them. Her upcoming order is expected to offer temporary relief to thousands facing imminent deportation.

US judge to block Trump move to end thousands of Latin American migrants’ legal status | Reuters


On January 10, Indonesia became the first country to temporarily block access to Elon Musk’s Grok chatbot, citing concerns over the platform’s ability to generate AI-produced pornographic content, including disturbing depictions of minors. The country’s Communications and Digital Minister condemned non-consensual sexual deepfakes as serious human rights violations and emphasized the need to protect dignity and digital safety. This action follows growing international criticism of Grok’s content safeguards, with some governments in Europe and Asia launching investigations.

xAI, the company behind Grok, responded by limiting image generation features to paying users while working to address security flaws that had allowed the creation of sexualized images. However, its public response to Reuters included a dismissive automatic message: “Legacy Media Lies.” Musk, posting on X, insisted users generating illegal content would be held accountable as if they had uploaded it directly.

Indonesia’s firm stance highlights the absence of similar decisive action from the United States, where Grok and xAI are based—raising questions about America’s professed commitment to protecting victims of online abuse. The U.S.’s failure to lead on this issue stands in stark contrast to its claimed leadership in defending digital rights and vulnerable populations.

Indonesia temporarily blocks access to Grok over sexualised images | Reuters


U.S. Treasury Secretary Scott Bessent said the government has more than enough funds—nearly $774 billion in cash on hand—to handle any tariff refunds that may result from a potential Supreme Court ruling against President Trump’s emergency tariffs. However, Bessent noted that any repayments would be distributed gradually over weeks or even up to a year. He expressed skepticism that the Court would rule against the tariffs, and criticized potential refunds as corporate windfalls, questioning whether companies like Costco, which sued the government, would pass any refunded money back to consumers.

While many importers argue that they should be reimbursed if the Court finds Trump’s use of the International Emergency Economic Powers Act (IEEPA) unlawful, Bessent claimed the actual number of refundable tariffs is lower than the estimated $150 billion cited by some trade analysts. He declined to offer a precise figure. He also disputed the idea that Trump’s tariffs significantly contributed to inflation, asserting that there was little evidence of cost pass-through to consumers.

Bessent warned that if the Supreme Court does rule against the tariffs, the decision could be complex rather than a simple reversal, which might complicate refund logistics. He added that a delay in the ruling increases the odds of a decision favoring Trump. Treasury’s projected end-of-quarter balance of $850 billion and an expected reduction in the 2025 calendar-year deficit are seen as bolstering its ability to manage any financial impact.

Bessent says US Treasury can easily cover any tariff refunds | Reuters


Federal Reserve Chair Jerome Powell revealed that the Fed had been served with grand jury subpoenas by the U.S. Department of Justice, escalating tensions between the central bank and the Trump administration. The subpoenas reportedly relate to Powell’s June 2025 congressional testimony about renovations to the Fed’s headquarters, but Powell described the move as part of a broader campaign of political intimidation aimed at undermining the Fed’s independence. He stated unequivocally that the threat of criminal charges was tied to the Fed’s refusal to set interest rates according to presidential preferences.

President Trump denied involvement in the DOJ probe, but his administration has long clashed with Powell over interest rate policy and spending. Trump has publicly floated removing Powell and Fed Governor Lisa Cook, whose case is pending before the Supreme Court. Meanwhile, markets reacted to the news with falling stock futures and a surge in gold prices, reflecting investor unease over the attack on central bank autonomy.

Republican Senator Thom Tillis condemned the subpoenas, pledging to block any future Fed nominee until the legal matter is resolved. The DOJ’s inquiry is reportedly focused on whether Powell misled Congress about ballooning renovation costs, which reached $2.5 billion. Though the administration alleges possible misconduct, critics see the legal threat as part of a pressure campaign to force Powell out ahead of his term’s expiration in May.

Fed Served With DOJ Subpoenas, Powell Vows to Stand Firm (5)

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