This Day in Legal History: Lincoln Signs Legal Tender Act
On February 25, 1862, President Abraham Lincoln signed the Legal Tender Act into law, allowing the U.S. government to issue paper money not backed by gold or silver. These new notes, called "greenbacks" due to their color, became the first widely circulated fiat currency in American history. The Civil War had placed enormous financial strain on the Union, and the government needed a way to fund its war effort without relying solely on borrowing or taxation. By making greenbacks legal tender for all debts except customs duties, the law ensured their widespread use. However, the move was controversial, as some feared it would cause inflation and undermine public confidence in the currency. Despite this, the greenbacks helped stabilize the wartime economy and ensured that soldiers and suppliers were paid. After the war, legal battles arose over whether the government could require creditors to accept paper money instead of gold or silver. The Supreme Court initially ruled against the policy in Hepburn v. Griswold (1870) but reversed its decision in The Legal Tender Cases (1871), upholding the government's power to issue fiat currency. The Legal Tender Act set a precedent for the federal government's control over the monetary system, paving the way for modern U.S. currency.
A federal judge has temporarily blocked Elon Musk’s Department of Government Efficiency (DGE) from accessing sensitive data held by the U.S. Education Department and the Office of Personnel Management. The ruling, issued by Judge Deborah Boardman in Maryland, came in response to a lawsuit from labor unions arguing that granting DGE access to personal records violated the Privacy Act of 1974. The data in question includes Social Security numbers, addresses, income details, and citizenship status of federal employees and student aid recipients. The Trump administration contended that restricting DGE’s access would hinder its government downsizing efforts, but the judge determined that the agency had no legitimate need for such information. The White House has not commented on the decision. Since Trump’s return to office, DGE, led by Musk, has pursued aggressive cost-cutting measures, including mass layoffs. The ruling follows another court decision in New York that blocked DGE from accessing Treasury Department systems, amid multiple lawsuits challenging its authority.
US judge blocks Musk's DOGE team from accessing Education Department, OPM data | Reuters
President Donald Trump is set to appoint Kash Patel, the newly confirmed FBI director, as the acting head of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), according to a source. Patel, a staunch Trump ally, will oversee both agencies simultaneously, a move that has sparked concerns among Democrats and moderate Republicans who previously opposed his FBI nomination due to his history of targeting Trump’s critics. Patel has strong backing from pro-gun groups and is expected to shift the ATF’s focus away from firearm regulation. The decision aligns with Trump's campaign rhetoric criticizing the ATF for being overly aggressive toward gun owners. Attorney General Pam Bondi recently fired the agency’s top legal counsel, Pamela Hicks, claiming ATF officials had unfairly targeted gun owners. Bondi has also redirected the ATF’s priorities toward immigration enforcement. Patel's dual appointment is part of a broader Trump administration strategy, with multiple officials holding multiple roles, including Marco Rubio at the State Department and Russ Vought at the Consumer Financial Protection Bureau.
Trump to name FBI chief Patel as acting ATF director, source says | Reuters
From a great piece written by Karl Bode for Techdirt, the American Rescue Plan Act (ARPA) is funding affordable, community-owned broadband networks in underserved areas, challenging monopoly control by major telecom companies. In New York, Oswego County received a $26 million grant to build an open-access fiber network, allowing multiple internet providers to compete over shared infrastructure. The network’s primary provider, Empire Access, is offering 500 Mbps service for $50 a month and 1 Gbps for $65, significantly undercutting industry giants like Charter and Verizon.
Similarly, Minnesota’s Carver County has used ARPA funds to build dark fiber infrastructure, leasing it to MetroNet in a public-private partnership. MetroNet now provides residents with gigabit fiber for $50 and 5 Gbps for $110, far cheaper than traditional providers. This strategy contrasts with other states that continue to funnel broadband subsidies to large telecoms with a history of neglecting rural and low-income areas.
Some states—Vermont, Maine, California, and New York—are using federal funds to expand community-owned broadband, treating internet access as an essential utility. However, with an additional $42.5 billion in broadband grants from the 2021 infrastructure bill set to be distributed, the Trump administration and the Department of Government Efficiency (DGE) will likely attempt to redirect these funds toward corporate-backed projects instead of community-driven initiatives.
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