This week’s guide to government and politics in under 10 minutes

Welcome to August. The House is on its month-long August recess. Which lawmaker would you pick first for kickball?🦵🏐

Kansas, Michigan, Missouri, Virginia, and Washington will hold primary elections tomorrow. Tennessee will hold primary elections on Thursday, and Hawaii will hold primary elections on Saturday. 

I NEW YORK SUES KALSHI

Prosecutors in New York have filed a lawsuit against popular prediction market Kalshi, accusing the company of operating an illegal gambling market. The lawsuit joins more than 20 similar suits and cease-and-desist actions filed by state attorneys general across the country and highlights a broader legal battle over whether regulating prediction markets falls under state or federal authority. The states claim that prediction markets offer illegal sports betting and gambling services, which fall under state authority. The Commodity Futures Trading Commission, the federal agency that oversees prediction markets, argues Congress has given it exclusive regulatory authority over the platforms and filed legal actions against at least nine states, including New York, to block them from attempting to regulate prediction markets. 

>> Find out how other states are approaching prediction markets here. 

I FLOCK CAMERAS UNDER ATTACK

At least 23 states have seen vigilante attacks and protests against Flock Safety automated license plate reader cameras. People and groups claiming responsibility for taking down the cameras cite privacy concerns and allege the cameras violate the Fourth Amendment. One group in the San Francisco Bay area has claimed responsibility for disabling more than 75 cameras in a single month. The attacks against the cameras coincide with a surge in police departments canceling their Flock contracts, including the Los Angeles police department. At least 82 organizations have cancelled Flock contracts across 28 states since 2021. 

>> Explore the debate over Flock cameras here. 

 I MISSOURI VOTERS CONSIDER ENDING STATE INCOME TAX

Tomorrow Missouri voters will vote on a measure that could end the state’s income tax. The proposed constitutional amendment would allow lawmakers to expand sales and use taxes to replace revenue lost by eliminating the state income tax. Lawmakers don’t need the constitutional amendment to eliminate the income tax, which brings in about $8.5 billion annually, but need the authority granted by the amendment to expand other taxes. Under the amendment, should lawmakers eliminate the income tax, they would not be able to reestablish it without another change to the state constitution. 

>> Dig deeper into state approaches to income taxes here.

I COMMERCE SPENDS $870 MILLION FOR STAKE IN CHIP COMPANIES

The Department of Commerce (DOC) is designating more than $870 million in federal incentives for seven technology companies. In exchange, the DOC will receive a minority equity stake in the companies. DOC Secretary Howard Lutnick issued a statement saying that “these strategic investments will enhance our country’s domestic capabilities, create high-paying jobs, and keep America at the forefront of the semiconductor industry.” The practice of taking equity stakes in businesses in exchange for federal incentives has drawn criticism, including from Senator Todd Young (R-IN), who drafted the CHIPS and Science Act, the law that the DOC used to make the deals. Young argues that the law was never intended to let the government take a stake in major companies. 

>> Learn more about the CHIPS Act here.

I SHUTDOWN-LESS SEPTEMBER?

Senate Republicans and Democrats are close to a deal to avoid a government shutdown in September. The proposal would fund the government through December 4 and halt a proposed rule that would give political appointees in the executive branch final sign-off authority over grants appropriated by Congress. The proposed rule would allow federal agencies to terminate any grant, cooperative agreement, or federal assistance at any time. Senators warn the rule would undercut Congress’s “power of the purse,” which it uses to shape executive policy making. 

>> Understand how federal shutdowns affect daily life here.

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