Trump admin updates: Trump wants Senate to cancel August recess to work on nominees

Federal Reserve Chair Jerome Powell is defending against attacks from the Trump administration, which alleged he's mismanaged renovation of the Federal Reserve headquarters. Trump has suggested it could be cause to oust the head of the nation's central bank.

Powell sent a letter on Thursday to the White House Office of Management and Budget (OMB) in response to their request for information. Powell wrote that officials at the agency "take seriously the responsibility to be good stewards of public resources."

Powell also argued that they have "taken great care to ensure the project is carefully overseen" since it began in 2017. Powell said that oversight has included budget approval and oversight from board members and oversight from independent inspectors general, including a 2021 independent audit of the project. In responses to the administration's issue of the cost, Powell also laid out how large "in scope" the renovations on the building are, noting that the structure was constructed in the 1930s and that it's the first "comprehensive renovation" of both of the Fed's buildings.

Powell also responded to some of the questions about the project from the Trump administration -- though he was quick to challenge their characterizations of the renovations. For example, OMB Director Russ Vought asked about plans for "private dining rooms" and a "private elevator to the dining suite." Powell responded by saying that there are "no VIP dining rooms" and "no special, private, or VIP elevators."

-ABC News' Michelle Stoddart

President Donald Trump on Friday again lashed out at Federal Reserve Chair Jerome Powell, calling on him to lower the interest rate.

Trump wrote in a social media post that the Fed is "choking out the housing market with their high rate, making it difficult for people, especially the young, to buy a house."

Trump called Powell "truly one of my worst appointments" and criticized former President Joe Biden for extending his term.

"And the Fed Board has done nothing to stop this "numbskull" from hurting so many people. In many ways the Board is equally to blame!"

-ABC News' Michelle Stoddart

Drama played out in a key House committee on Thursday night as lawmakers debated dueling measures dealing with the release of files related to disgraced financier Jeffrey Epstein.

During a vote in the House Rules Committee, Republicans voted to advance a non-binding resolution to call for the release of some Epstein files. The rule provides no floor debate for the matter, and it is not subject to Senate passage or approval by the president.

It allows Attorney General Pam Bondi to make public all "credible" documents as well as redact or withhold portions of the Epstein files.

The vote in the committee was 9-4.

During the committee meeting, a screaming match unfolded between Ranking Member Rep. Jim McGovern, D-Mass., and GOP Rep. Austin Scott, R-Ga., over releasing the Epstein files.

"We know who you are hiding," McGovern said in one exchange.

"You're the party of child victims," Scott said in response.

It’s not clear when the measure would be brought up for a full House vote. The resolution, which did not receive Democratic support, would not legally require the Trump administration to act.

Democrats also offered an amendment -- which failed -- to force the release of all materials about the Epstein investigation through a bill sponsored by Reps. Thomas Massie, R-Ky., and Ro Khanna, D-Calif.

The wrangling over the Epstein measures delayed moving forward on a vote to approve a White House request to claw back $9 billion from the federal budget, including funding for foreign aid and public broadcasting.

-ABC News' Lauren Peller

The Department of Homeland Security and the Centers for Medicare and Medicaid will start an "initiative" to ensure that "illegal migrants are not receiving Medicaid benefits that are meant for law-abiding Americans," a DHS official said.

The Associated Press first reported the agreement between the departments.

“President Trump consistently promised to protect Medicaid for eligible beneficiaries," DHS Assistant Secretary of Public Affairs Tricia McLaughlin.

An official with the Department of Health and Human Services told ABC News the department takes the integrity of the Medicaid program and the protection of American taxpayer dollars extremely seriously.

HHS acted within its legal authority – and in compliance with all applicable laws – to ensure that Medicaid benefits are reserved for individuals who are lawfully entitled to receive them, according to the official.

DHS has also entered into an information sharing partnership with the IRS.

-ABC News' Luke Barr and Michelle Stoddart