Trump calls for famed Alcatraz prison to be reopened, expanded

The state of Maine and the Trump administration reached a settlement Friday to resolve a lawsuit over a recent funding freeze that Maine alleged was imposed to punish the state for its policies on transgender athletes.

The settlement was disclosed in a court filing on Friday afternoon, and lawyers with the Maine Attorney General’s office moved to dismiss their case shortly afterward.

The terms of the settlement were not immediately disclosed.

“It’s unfortunate that my office had to resort to federal court just to get USDA to comply with the law and its own regulations. But we are pleased that the lawsuit has now been resolved and that Maine will continue to receive funds as directed by Congress to feed children and vulnerable adults,” Maine Attorney General Aaron M. Frey said in a statement Friday.

Last month, a federal judge blocked the Department of Agriculture from freezing millions of dollars related to child nutrition and other federal programs, finding the Trump administration likely violated the law when it attempted to cut off the previously appropriated funding.

The lawsuit followed a tense interaction between Trump and Maine Gov. Janet Mills in February over the president’s executive order prohibiting transgender athletes from participating in women’s sports.

-ABC News' Peter Charalambous and Alexander Mallin

Thirteen Senate Democrats wrote to President Donald Trump in a letter Friday to express concern that Elon Musk is "exploiting his position" as a senior White House advisor to "influence foreign governments for his own financial gain," and to call on him to investigate these allegations.

The letter cites reports that Musk is allegedly "taking advantage of his government role to coerce concessions from foreign governments for his own benefit, including unfettered market access as well as contracts with his companies, in exchange for favorable treatment by the U.S. government."

Democrats are particularly focused in this letter on recent reports about business deals struck between Musk's company Starlink and other countries. They cite reporting by the Washington Post about recent distribution deals and licensing deals reached between Starlink and several countries, including India and Bangladesh.

If these actions took place in the White House or Blair House, Democrats say, they could be in violation of U.S. law. Democrats say this should be investigated and call on Trump to make public any findings.

"The fear that officials are misusing their authority for self-enrichment, be it through government contracting or through corrupt interactions with foreign governments, is not one that Americans should have to countenance. Brazen corruption of that sort is seen in despotic regimes, not the United States of America," the letter states.

ABC News' Allison Pecorin

The White House has released its proposed FY2026 budget Friday – which calls for $163 billion in cuts to federal spending, according to a letter that OMB Director Russell Vought sent to Congress alongside the proposal.

Many of those cuts will come from agencies, including the Department of Education, the Department of Health and Human Services, USAID and the Environmental Protection Agency, among others. But there are plans to increase funding in some areas – primarily for defense and border security.

"The President is proposing base non-defense discretionary budget authority $163 billion-22.6% below current year spending, while still protecting funding for homeland security, veterans, seniors, law enforcement, and infrastructure," Vought said in a letter about the proposal.

The budget proposal from the White House is basically a wish list, but it does serve to illustrate the administration's priorities and what the White House hopes is a jumping off point for negotiations with Congress.

-ABC News' Michelle Stoddart

President Donald Trump is touting economic markers as he continues to defend his tariff policy in a new social media post. Trump touted gas prices, which he incorrectly claims have been the "lowest in years," as well as jobs data, saying there is "strong employment."

Hiring slowed but remained robust in April following Trump's tariff rollout. The U.S. added 177,000 jobs in April.

"Just like I said, and we're only in a TRANSITION STAGE, just getting started!!! Consumers have been waiting for years to see pricing come down," Trump wrote in a social media post on his platform after the latest jobs data was released.

Read more about the latest jobs report here.