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The Supreme Court agreed on Monday to consider whether Congress had the constitutional authority to impose a ban on distilling spirits in private homes more than 150 years ago.

Plaintiffs challenging the prohibition on home distilling claim the 1868 law is an antiquated relic of Reconstruction-era politics. They argue that Congress overstepped its taxation powers when it enacted the home distilling ban as part of a tax reform measure designed to curb fraud by commercial distillers.

Government attorneys counter that Congress properly restricted where spirits can be distilled to prevent producers from evading federal excise taxes. They warn that lifting the ban would violate Supreme Court precedent and erode congressional powers.

Federal law makes home distilling a crime punishable by a maximum sentence of five years in prison and a $10,000 fine.

Separate challenges to the law divided two federal circuit courts, which issued conflicting decisions in April, only 11 days apart.

A three-judge panel from the Sixth U.S. Circuit Court of Appeals upheld the federal ban in a case brought by John Ream, a brewpub owner from Newark, Ohio, who wants to distill whisky at home for his personal consumption.

A Fifth Circuit panel ruled in favor of different plaintiffs — members of the Texas-based Hobby Distillers Association — and concluded that statutory prohibitions on in-home distilling are outside the scope of Congress' taxing power under the Constitution.

The Supreme Court agreed to review the Fifth Circuit decision, which was the Justice Department's preference. Plaintiffs' attorney Robert Alt said they are "thrilled" that the Supreme Court agreed to hear the case.

"Our country's founders would be rolling over in their graves to learn that a pastime in which even George Washington partook, which is as American as apple pie and certainly a lot older, has quite absurdly been turned into a federal crime," Alt said in a statement.

Attorneys for the plaintiffs in both cases argue that Congress could ban a broad array of activities inside private homes — including cooking, gardening and remote work — under the government's interpretation of the 19th century law.

"The importance of this case and the questions it presents could hardly be overstated," the plaintiffs' lawyers wrote. "It presents fundamental questions of the extent of federal power and the powers reserved to the states and the people."

Justice Department attorneys said the government's regulation and taxation on the production of distilled spirits is as old as Congress itself. They noted that Congress outlawed home distilling to prevent those producers from evading taxes or government inspections.

"And because the location restrictions were enacted only after lengthy experience with tax evasion, upholding those restrictions would not open the door to hypothetical laws restricting other conduct lacking that history," they wrote. The government says Ream asked the Supreme Court to resolve an "additional question" of whether location restrictions on home distilling exceed the scope of Congress's power to regulate interstate commerce. But the government urged the high court to avoid that question, saying it wasn't part of Ream's case or the government's current arguments in either case.




Twenty-five states sued the Trump administration Monday over its latest tariffs, calling them a pretext for replacing import taxes the Supreme Court struck down in February.

The United States last month imposed double-digit tariffs on 59 countries and the European Union, charging that they had not done enough to crack down on imports produced by forced labor. The new tariffs took effect just as the clock ran out on temporary tariffs President Donald Trump had turned to after the Supreme Court defeat.

“After losing at the Supreme Court, the administration is once again trying to illegally raise taxes on families and businesses with a new round of tariffs,” said New York Attorney General Letitia James.

Joining New York in the lawsuit announced Monday are Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Kentucky, Massachusetts, Maryland, Maine, Michigan, Minnesota, Nevada, New Jersey, New Mexico, North Carolina, Oregon, Pennsylvania, Rhode Island, Virginia, Vermont, Washington and Wisconsin.

Trump, who argues that high tariffs will revive American manufacturing, last year overturned decades of U.S. policy that favored lower tariffs and ever-freer trade. Invoking the 1977 International Emergency Economic Powers Act, or IEEPA, he imposed double-digit tariffs on imports from almost every country, saying America’s longstanding trade deficit amounted to a national emergency.

But the Supreme Court ruled that IEEPA did not authorize tariffs. The decision forced the administration to send refunds to importers who’d paid the tariffs. Eager to make up the lost revenue, Trump turned to temporary 10% worldwide tariffs. But they expired at midnight July 24.

Now he’s tapping more durable tariffs under Section 301 of the Trade Act of 1974, which permits the president to impose import taxes and other sanctions against countries found to engage in unfair trade practices. Trump used Section 301 to impose big tariffs on China in his first term, and they survived court challenges.




Two lawsuits filed by small businesses are challenging Trump’s sweeping tariffs announced Thursday that impose double-digit levies on 60 trading partners.

The tariffs, implemented under Section 301 of the Trade Act of 1974 for what the Trump administration says is countries’ failure to prevent imports produced by forced labor, cover 99% of U.S. imports. Critics say the goal is less to prevent forced-labor imports and more to replace the worldwide tariffs that Trump imposed last year that were struck down by the Supreme Court in February. They came just as temporary 10% worldwide tariffs — that had also been challenged in court — expired.

Educational toy company Learning Resources, which was part of the tariff lawsuit that won in the Supreme Court, filed a new suit along with several other small businesses in the Court of International Trade on Friday over the current round of tariffs.

The second lawsuit was filed by Burlap and Barrel, a New York-based spice company, and Collective Horology, a watch retailer based in Ventura, California. They are represented by Liberty Justice Center, a libertarian advocacy group.

Both lawsuits argue that the government didn’t adequately establish its case against each specific economy or spell how the tariffs will eliminate the specified practice they are being levied for, as required by Section 301.

“Forced labor is morally indefensible, but an important objective does not give the government permission to ignore the law,” said Sara Albrecht, chairman and CEO of the Liberty Justice Center. “The administration allowed one global tariff to expire and immediately replaced it with another under a different statute. Changing the statute doesn’t change the law.”

The White House did not immediately respond to a request for comment.

Experts say it might be tougher to successfully challenge the current round of tariffs than previous rounds. Trump used Section 301 to impose big tariffs on China in his first term, and they survived court challenges.

Unlike the Section 122 levies that expired Friday, “these tariffs will be with us for the long haul,” said lawyer Patrick Childress, a partner at Holland & Knight and a former U.S. trade official.

Even if countries enact the precise policies the U.S. wants, he said, they will still need to prove that they’re enforcing them to Washington’s satisfaction before the tariffs are removed. “This suggests that no short-term path for country-wide relief from the new Section 301 tariffs will be available.”




A federal judge said the government overreached by issuing a declaration that called treatments like puberty blockers and surgeries unsafe and ineffective for young people experiencing gender dysphoria, according to a ruling Thursday in Oregon.

Judge Mustafa Kasubhai's ruling was centered on Secretary Robert F. Kennedy Jr. not going through the proper administrative procedures when issuing the declaration in December.

The declaration also warned doctors that they could be excluded from federal health programs like Medicare and Medicaid if they provide these treatments.

The judge also denied the defendants' motion to dismiss the case.

The judge's ruling was at the end of a roughly 6-hour hearing and will be followed by a written decision.

"Today's win breaks through the noise and gives some needed clarity to patients, families, and providers," the Democratic New York Attorney General Letitia James, who led the lawsuit, said in a statement Thursday. "Health care services for transgender young people remain legal, and the federal government cannot intimidate or punish the providers who offer them."

A spokesperson for HHS did not immediately respond to an email requesting comment. The New York Times reported that the judge spoke about the broader implications associated with this case, especially as it relates to democracy.

"The notion that 'I will go forward and issue a declaration and see if we can get away with it' is not a principle of governance that adheres to the overarching commitment to a democratic republic that requires the rule of law to be regarded and respected and honored as a sacred," the judge said.

The decision is the second major legal setback for Kennedy and the U.S. Department of Health and Human Services this week. Another federal judge in Boston on Monday temporarily blocked several of Kennedy's vaccine policy changes. The judge ruled Kennedy likely violated federal procedures in revamping a key vaccine advisory committee and slimming down the childhood vaccine schedule without the committee's input. Federal officials have indicated they plan to appeal that ruling.

A coalition of 19 states and the District of Columbia in December sued HHS, Kennedy and its inspector general over the declaration, alleging that it is inaccurate and unlawful and asking the court to block its enforcement.

The lawsuit says that HHS's declaration seeks to coerce providers to stop providing gender-affirming care and circumvent legal requirements for policy changes. It also says federal law requires the public to be given notice and an opportunity to comment before substantively changing health policy — neither of which, the suit says, was done before the declaration was issued.

HHS's declaration based its conclusions on a peer-reviewed report that the department conducted earlier this year that urged greater reliance on behavioral therapy rather than broad gender-affirming care for youths with gender dysphoria.

The report questioned standards for the treatment of transgender youth issued by the World Professional Association for Transgender Health and raised concerns that adolescents may be too young to give consent to life-changing treatments that could result in future infertility.

Major medical groups and those who treat transgender young people have sharply criticized the report as inaccurate, and most major U.S. medical organizations, including the American Medical Association, continue to oppose restrictions on transgender care and services for young people.




The Justice Department is taking direct aim at the financial lifelines of Mexico’s most violent drug cartels, targeting money brokers who prosecutors say have adapted to intensified enforcement by increasingly routing drug profits through cryptocurrency from American cities to cartel leaders in Mexico.

The cases of four defendants recently sent from Mexico to the U.S. for prosecution provide a glimpse into shadowy money laundering networks that allow the Jalisco New Generation Cartel and other violent groups to continue pumping dangerous drugs into American communities. The prosecutions underscore the Justice Department’s efforts to turn up the pressure on cartels and stay ahead of their sophisticated and ever-evolving tactics to launder money across the border without detection.

By targeting alleged money brokers — rather than street-level traffickers — prosecutors say they are aiming at a choke point they believe is essential to the cartels sustaining their operations as law enforcement pressure mounts on more visible drug routes.

Since the beginning of President Donald Trump’s second administration, the Mexican government has turned over more than 90 high-level defendants with ties to cartels in three transfers now at the center of a legal debate in Mexico. The defendants were wanted by U.S. prosecutors for crimes including drug trafficking, human smuggling and money laundering.

Senior Justice Department officials say bringing cartel figures to the United States is designed to do more than be a deterrent message. It could also lead to indictments against other high-level leaders if defendants cooperate, allowing prosecutors to reach higher into cartel leadership. Under Trump’s Republican administration, the Justice Department has restructured the Criminal Division to integrate narcotics prosecutors with anti-money laundering experts to better target cartels and to reflect a broader shift toward targeting the financial systems that sustain their operations.

The latest transfers to the U.S. include alleged Mexico-based money brokers, who authorities say oversee the movement of drug proceeds and pocket a percentage of the money that returns to the cartels as a commission, according to court papers. The brokers arrange for cash to be picked up in cities across the U.S. and conceal the money to get it across the border, often through digital assets as law enforcement has cut off other methods.

Prosecutors “want to hear on the distribution side how it works, who is involved, and seek additional indictments, and on the money laundering side, exactly the methods that they are using to get the money out of the United States through the U.S. banks,” Duva said. “There’s bulk cash smuggling that has been going on since the beginning of time, and then also sort of the newer trend of taking the cash, buying cryptocurrency, and then trading that cryptocurrency.”

Eduardo Rigoberto Velasco Calderon, Eliomar Segura Torres, Manuel Ignacio Correa and Cesar Linares-Orozco face money laundering conspiracy charges in indictments filed in Kentucky’s federal court. An attorney for Linares-Orozco declined to comment in an email to the AP, and no attorneys were listed in court papers for the other defendants.

The January transfer of 37 defendants from Mexico to the U.S. marked the third of its kind under Trump’s second term. Observers have described the transfers as an offering by Mexican authorities to offset mounting threats by Trump to take military action against cartels.

A group of lawyers and family members of cartel figures have accused Mexico of breaking the law by sending them without an extradition order. Mexico’s government has maintained the transfers were legal, carried out in the name of national security.



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