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A local LGBTQ+ nightclub was denied COVID-19 aid. Its owner is fighting back

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A local LGBTQ+ nightclub was denied COVID-19 aid. Its owner is fighting back

On a Saturday night at North Hollywood’s Club Cobra, a drag queen dressed as Miley Cyrus lip-synced to “Zombie” by the Cranberries, with Halloween decor and disco balls dangling from the ceiling. Muscular go-go dancers grooved in a cloud of rainbow fog while patrons vibed to hits by Selena and Bad Bunny.

It wasn’t easy for the popular Latin LGBTQ+ nightclub to rebuild to this level of live entertainment after nearly going out of business because of the COVID-19 pandemic.

The public health crisis shut the operation down for 18 months and left its owners hundreds of thousands of dollars in debt. Making matters worse, the U.S. Small Business Administration has repeatedly denied Club Cobra’s application for COVID-19 relief money, alleging that the establishment offered services of a “prurient sexual nature.”

For Marty Sokol, 56, owner of Club Cobra, the lack of government assistance has been frustrating and surprising.

“We’re the good guys in this town,” Sokol said by phone. “We’re the place you have your birthday party at. We’re the place you bring your tía to. … It’s beyond insulting.” (Tía is Spanish for aunt.)

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Sokol is one of multiple business owners who say they were unjustly denied money from the Shuttered Venue Operators Grant program, launched by the federal government in 2021 to provide financial support of up to $10 million to arts and entertainment venues and promoters decimated by the pandemic.

Some have taken legal action against the SBA. And though the courts have sided at various points with the business owners, Sokol and others are still fighting for financial aid.

“We really feel wronged,” Sokol said. “If it wasn’t for our community, there’d be no way we would have survived.”

The issue isn’t limited to nightclubs. The Times also spoke with a North Carolina-based movie theater chain and a Tennessee concert promoter that have struggled to secure grants. Prominent cases — including a dispute between the SBA and exhibition basketball team the Harlem Globetrotters over $10 million in grant money — have drawn attention to the problems. (The court dismissed the Globetrotters’ complaint against the SBA last October.)

The SBA has also drawn scrutiny for awarding more than $200 million in SVOGs to companies with rich and famous owners — such as Post Malone, Chris Brown and Lil Wayne — while withholding assistance for others, according to a report by Business Insider.

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“The overarching complaint has been there is a lack of transparency in the SBA’s decision-making process,” said James Sammataro, a Miami-based partner at law firm Pryor Cashman who has represented entertainment businesses in other SVOG cases.

“What [critics have] essentially said is it’s too subjective. … It’s applied unevenly, and the SBA has — intentionally or otherwise — created a hierarchy of who is more entitled to receive the grant money.”

The SBA declined to comment, saying it “does not provide comment on pending litigation.”

The SVOG controversy serves as a reminder of the lingering consequences of COVID-19 years after the pandemic first wreaked havoc on the economy and judicial system. Just as entertainment businesses were disrupted by the global health crisis, so too were the courts, Sammataro said, compounding the typical tedium.

“There’s no expedition that’s applied to these types of cases, even though you’re literally dealing with companies [whose] very lifeline may be on the line,” Sammataro said.

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Marty Sokol at Club Cobra in North Hollywood.

(Michael Blackshire / Los Angeles Times)

Club Cobra has been serving drinks, DJ sets and live performances to the local LGBTQ+ community for more than a decade. Its sister establishment, Club Chico in Montebello, is coming up on its 25th anniversary.

During the COVID-19 shutdowns, Sokol and his team kept their business alive by streaming a socially distanced drag and go-go show on the subscription platform OnlyFans. Proceeds weren’t enough to dig Club Cobra out of debt, so Sokol applied for a $486,762 grant in April 2021.

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When the SBA rejected Club Cobra’s application, Sokol appealed.

After some prodding, Sokol received an SBA email on Nov. 3, 2021 explaining that Sokol’s application was denied “at least in part” because Club Cobra “presented live performances of a prurient sexual nature” or derives meaningful revenue “through sale of products or services, or the presentation of any depictions or displays, of a prurient sexual nature.” In official materials regarding the SVOG program, the SBA outlines prurience as grounds for disqualification.

The SBA took issue with images of Club Cobra dancers in “seemingly sexualized” poses and “revealing” outfits posted on the business’ social media platforms. It also disapproved of the virtual drag and go-go shows that Club Cobra streamed on OnlyFans, calling them “erotic dance shows.”

A man in a green hat and a man in a black mesh shirt smiling at each other in a dark club.

Club goers enjoy each other’s company at Club Cobra in North Hollywood.

(Michael Blackshire / Los Angeles Times)

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Sokol sued, accusing the agency of arbitrarily and capriciously refusing Club Cobra grant money while awarding SVOGs to similar establishments around Los Angeles — such as LGBTQ+ nightclub Reload Entertainment on Cahuenga and Silver Lake’s Los Globos. The SBA argued that it had conducted an informal review of the other establishments and determined that an additional “prurience review” was not necessary.

Sokol demanded that the U.S. district court in D.C. force the SBA to reconsider his application. The court concluded that the SBA failed to provide a “reasoned analysis for why these apparently similarly situated competitors were treated differently.”

Sokol said it was painful to see other nightclubs receive emergency aid while Club Cobra was refused money he could use to cover renovations, outstanding rent payments and other obligations.

“Watching them rebuild with great ease, we didn’t begrudge them,” Sokol said. “We just wanted equal treatment.”

In December 2022, the SBA vetoed Sokol’s application again, this time providing analyses of five “alleged competitors” and why they qualified for grants. The SBA reasoned that, for the most part, those establishments did not regularly post suggestive images or present live performances of a prurient nature.

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Sokol filed another motion for summary judgment in May 2024. The court has yet to respond.

A drag queen wearing a blond-and-pink wig, a pink crop top and a pink miniskirt performs onstage under a spotlight.

Audry Cobra performs during a drag show at Club Cobra in North Hollywood.

(Michael Blackshire / Los Angeles Times)

Another business in contention with the SBA is Golden Ticket Cinemas, a North Carolina-based theater chain. .

Golden Ticket Cinemas President John Bloemeke had opened his fifth and sixth locations when COVID-19 ravaged the entertainment industry

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Bloemeke was able to secure grants for most of his locations, but not for two based in DuBois, Pa., and Rapid City, S.D. After Bloemeke challenged the SBA’s move to shun those theaters, the government agency offered the business owner roughly $500,000 — down from the roughly $2.8 million he asked for.

Two shirtless men dancing together in a dark nightclub.

Patrons dance together at Club Cobra in North Hollywood.

(Michael Blackshire / Los Angeles Times)

Bloemeke filed complaints accusing the SBA of shortchanging Golden Ticket Cinemas and then failing to disburse those funds.

The SBA countered that Golden Ticket Cinemas wasn’t eligible for the full SVOG amount requested because those locations had allegedly been operational for longer than Bloemeke reported.

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The court agreed with the SBA’s position that it was not legally obligated to disburse the funds. However, it also concluded that the agency’s logic for awarding a significantly lower amount was flawed and ordered the SBA to reevaluate the application.

According to Bloemeke, the SBA has yet to heed the court’s ruling.

“It was very frustrating,” Bloemeke said. “I mean, we have a nine-plex that’s only operating five of the screens because we’re still trying to get our head a little bit above water with some of this stuff.”

A muscular male go-go dancer performing at a club in a turquoise speedo with cash tips peeking out of it.

A go-go dancer performs at Club Cobra in North Hollywood.

(Michael Blackshire / Los Angeles Times)

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Meanwhile in Nashville, Justin Roddick is still trying to snag a grant for his company, Concert Investor, which produces tours for up-and-coming musicians. Over the past 12 years, Concert Investor has helped launch the careers of Twenty One Pilots, Little Big Town, Kelsea Ballerini and other artists.

When acts stopped touring during the pandemic, Roddick’s business suffered.

“A year after COVID, we found ourselves with no other option other than to completely restart,” Roddick said. “So when I heard about the grant, I was very excited.”

Roddick was soon disillusioned. His request for about $5 million was denied multiple times, with the SBA deciding that Concert Investor did not control enough aspects of its productions to “meet the definition of a performing arts organization operator.”

A person wearing sunglasses and a halo headband smiles underneath a disco ball and pink lights at a nightclub.

A club goer dances in the crowd at Club Cobra in North Hollywood.

(Michael Blackshire / Los Angeles Times)

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. The Concert Investor team alleged that the SBA unfairly altered the definition and moved the goal posts after the fact.

Initially, the court ruled in favor of the SBA. But an appeals court reversed that ruling in May 2024.

According to Patrick Corcoran, a representative for the businesses, the SBA was given a deadline of Dec. 11 to deliver a new decision. Depending on how the agency responds, Roddick might have to wait for the next Ballerini or Twenty One Pilots to come along and revive his touring business.

“It’s devastating to pay into the system and to believe it works a certain way … and then to have no action,” Roddick said. “It’s kind of unreal to me.”

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President Trump Wants to Be Everywhere, All the Time

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President Trump Wants to Be Everywhere, All the Time

To understand how Mr. Trump has achieved this omnipresence, The New York Times reviewed the first 329 days of his second term, finding at least one instance each day when he attracted the public’s attention to himself and his actions.

The review encompassed more than 250 media appearances, more than 320 official appearances, and more than 5,000 Truth Social posts or reposts. The analysis shows that while Mr. Trump has lagged his predecessors in his number of official appearances, he has pursued a raft of innovative methods to force himself into the public consciousness on a daily, and sometimes even hourly, basis.

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The battery of activity started from the moment he was inaugurated, when he traveled from the Capitol Building to the Capital One Arena to publicly sign a flurry of executive orders.

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Since then, he has stayed in the public eye in part by doing things no president has ever done. High-stakes Oval Office meetings, like his negotiations with President Volodymyr Zelensky of Ukraine, are held on-camera and broadcast live on global news networks. His Q.-and-A. sessions with reporters frequently last an hour or more.

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He regularly airs his opinions – on social media, in discursive asides at rallies – about idiosyncratic subjects that range widely across the zeitgeist, from Sydney Sweeney’s sexy denim ads to the redesigned logo of the Cracker Barrel restaurant chain to the mysterious fate of the aviator Amelia Earhart, who vanished over the Pacific Ocean in 1937.

And his engagement with the news media has soared well beyond the start of his first administration.

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Through Dec. 14, Mr. Trump took reporters’ questions on 449 occasions, compared with 223 during the same period of his first term. On average, Mr. Trump has interacted with journalists roughly twice a day, doubling his rate from 2017, according to Martha Joynt Kumar, a Towson University political scientist who tracks presidential press interactions. Mr. Trump limits which news outlets can ask questions at small events, but in sheer volume, he is the most media-accessible modern president, and far outpaces his predecessor, Joseph R. Biden Jr.

“Reporters will be in my office asking me for the president’s reaction to a breaking news story,” Karoline Leavitt, the White House press secretary, said in an interview. “And I’ll just say to them, ‘I don’t know, why don’t you ask him yourself in 30 minutes?’”

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Finding the Cameras

President Trump’s media appearances have soared this year, more than doubling both the Biden administration’s and those of his own first term.

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Note: Media appearances include interviews, opinion pieces, position papers, press conferences and informal Q.-and-A.s. Source: Roll Call Factbase. The New York Times

Many of his public moments go viral online, like his diatribe about restoring the name of the Washington Redskins, or the A.I.-generated video meme he posted of himself dribbling a soccer ball with Cristiano Ronaldo in the Oval Office. They take on a life of their own, rippling across social media and dissected and amplified by influencers and mass media platforms alike.

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The result is a president whose not-so-inner monologue is injected into our daily lives in myriad ways, when we are watching TV on the weekends or idly scrolling the web – a Greek chorus for our national narrative.

“He’s the most ubiquitous president ever,” said Douglas Brinkley, the presidential historian.

The media strategy aligns with his political strategy.

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Dating back to his years as an outspoken real estate developer and reality TV star, Mr. Trump has relished being unavoidable for comment. But at age 79, he has been outdoing his younger self. And there is a logic to his logorrhea.

Mr. Trump’s allies often speak of the political benefits of flooding the zone: pursuing so many policies, ideas, and dramatic restructurings of the normal ways of governance as to overwhelm the system. “All pedal, no brake,” as Stephen K. Bannon, Mr. Trump’s one-time adviser, has called it.

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“We joke internally that he is our ultimate director of communications,” Ms. Leavitt said. “He has incredible media instincts, and he is the final decision maker on all policy, and he has been in a ‘flood the zone,’ ‘do as much as possible’ mindset since he walked into the Oval Office on Jan. 20.”

All presidents benefit from the awesome news-making powers of the office, with its agenda-setting influence over a dedicated global press corps. But Mr. Trump has outstripped his predecessors in whipsawing the public’s attention onto matters small and large – and limiting the level of scrutiny that any one shocking remark or policy proposal receives.

“People can really only focus on a handful of things a day,” said Bill Burton, a deputy White House press secretary under former President Barack Obama. “This attention flood is working for Trump because he is able to do an extraordinary amount of executive actions and very little of it can get attention.”

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Or as Mr. Brinkley put it: “He plays to win the day, every day, around the clock.”

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His commentary takes on a life of its own.

One of Mr. Trump’s political assets is his instinct for virality.

With a natural feel for the web, Mr. Trump has a knack for amplifying wacky memes and pop culture curios that can drive days of online discourse. Sometimes, coverage of his offhand remarks or late-night social media posts can crowd out the more significant, norm-shattering changes he is making to American governance.

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Late one Friday night in May, the president posted an obviously A.I.-generated image of himself as the pope. It struck a nerve.

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Mr. Trump had already courted controversy days earlier, after the death of Pope Francis on April 21.

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“I’d like to be pope,” the president told reporters who asked about who should become the next pontiff. “That would be my number one choice.”

The comment disturbed some Catholics, who said the notion was crude and insensitive. That reaction seemed only to prompt Mr. Trump to double down, posting the A.I.-generated image to his Truth Social account days later. By the weekend it had become a cultural phenomenon, mocked on “Saturday Night Live” and called out by experts as an example of misleading A.I. content.

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After Mr. Trump posts the A.I. image …

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May 2

Trump posts A.I. image of himself as Pope

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… some Catholics were outraged, prompting a news cycle focused on the controversy …

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There is nothing clever or funny about this image, Mr. President. We just buried our beloved Pope Francis and the cardinals are about to enter a solemn conclave to elect a new successor of St. Peter. Do not mock us.

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May 3

NYS Catholic Conference says “do not mock us”

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May 3

“Saturday Night Live” covers fake image

May 3

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Vatican asked about image, declines to comment

May 4

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Cardinal Joseph Tobin of New Jersey criticizes image as “not good”

May 4

JD Vance defends Trump on X, calling it a joke

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… before Mr. Trump suggested he had nothing to do with it.

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5

Says “the Catholics loved it”

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Mr. Trump, who is not Catholic, had plenty of defenders, too. They said his commentary and the A.I. image were simply jokes, part of the president’s unique comedic style.

“As a general rule, I’m fine with people telling jokes and not fine with people starting stupid wars that kill thousands of my countrymen,” Vice President JD Vance, who is Catholic, wrote on X.

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In his quest for attention, the president is often aided by a cottage industry of right-wing influencers and activists who are primed to syndicate, reinforce and defend whatever content he pushes out each day. For this conservative media ecosystem, Mr. Trump’s messaging and commentary are the raw fuel that drives clicks, shares and views.

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On June 7, the president’s visit to a raucous U.F.C. fight – complete with a “Trump dance” entrance into the arena – generated an immediate spike in online interest, including about 50,000 posts on X. Five days later, when he promoted a “Trump gold card” visa, his announcement led to roughly 30,000 posts on X.

A barrage that distracts from bad news.

One pattern in Mr. Trump’s behavior: When his administration is faced with bad news, he launches a fusillade of distraction.

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This can take the form of outlandish, out-of-left-field claims about political opponents. Or he might weigh in on a pop culture subject far afield from Washington politics – from the ratings of late-night hosts like Seth Meyers to the physical appearance of a megastar like Taylor Swift.

The events of July 2025 offer a case in point.

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As the Jeffrey Epstein files returned to the news – along with speculation that Mr. Trump might appear in them – the president embarked on a breathtaking series of tangents. Mr. Trump claimed without evidence that former President Bill Clinton had bankrolled an effort by senior intelligence officials to frame him for a crime, mused about stripping the actress Rosie O’Donnell of her U.S. citizenship, and accused the singer Beyoncé of accepting millions of dollars to endorse his erstwhile rival, former Vice President Kamala Harris.

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On July 8, the F.B.I. said it would not declassify more Epstein files.

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July 8

F.B.I. publishes memo about Epstein files

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Over the following days, Mr. Trump seemed to lash out in every direction.

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10

Claimed intelligence officials tried to frame him

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10

Pushed to defund NPR and PBS

10

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Directed ICE to arrest protesters

12

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Threatened Rosie O’Donnell’s citizenship

15

Claimed Adam Schiff engaged in mortgage fraud

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On July 18, the Justice Department filed a request to unseal grand jury testimony about Mr. Epstein, again raising questions about Mr. Trump’s involvement. The president promptly lobbed insults at late-night talk show hosts, dismissed the Epstein affair as “fake news” and shared fresh claims about a supposed Obama administration plot to undermine him after the 2016 election.

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On July 18, the Department of Justice filed a request — later denied — to unseal grand jury testimony.

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July 18

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Request filed to unseal grand jury testimony

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Over the following days, Mr. Trump bounced from topic to topic.

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20

Criticized Washington Commanders name

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Obama himself manufactured the Russia, Russia, Russia HOAX. Crooked Hillary, Sleepy Joe, and numerous others participated in this, THE CRIME OF THE CENTURY!. Irrefutable EVIDENCE. A major threat to our Country!!!

21

Called the “Russia hoax” the “crime of the century”

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22

Called Epstein controversy “fake news”

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22

Criticized Kimmel and Fallon

24

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Criticized Federal Reserve chairman

On July 25, The Wall Street Journal published a major scoop: The paper had unearthed a risqué birthday letter that Mr. Trump had apparently written to Mr. Epstein in 2003. Mr. Trump responded with his attack on Beyoncé and revived his threat to revoke the broadcast licenses of TV networks. Then he announced the imminent construction of an enormous gilded ballroom at the White House, at a cost of $200 million. (He has since revised the cost upward to $400 million.)

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Asked if there was a deliberate strategy to distract from negative news, Ms. Leavitt noted that every administration seeks to minimize unhelpful headlines.

“Yes, there have been times in which we’ve tried to do that, but also often it just happens naturally, because the president is willing to weigh in on so many subjects,” she said. “Sometimes it’s really not deliberate. It’s just him speaking his mind on whatever news cycle or news story is brought to him in that moment.”

He has added tricks to his arsenal.

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Mr. Trump’s devotion to Truth Social mirrors the hair-trigger Twitter habit of his first term; on one recent December evening, he posted 158 times between 9 p.m. and midnight. And he has continued to appear on Fox News with certain preferred hosts.

But this year, he has added to his media arsenal by appearing in many more public spaces that fall outside of a president’s typical itinerary.

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Mr. Trump has stopped by a Washington Commanders N.F.L. game, popped up in the New York Yankees locker room, attended the Ryder Cup golf tournament and the men’s tennis final at the U.S. Open, sat ringside at numerous U.F.C. fights, and traveled to the Daytona 500. He is the first sitting president to attend a Super Bowl. When FIFA staged the Club World Cup final in New Jersey, Mr. Trump not only attended, but joined the winning team onstage for the trophy ceremony.

The net effect is a sense of inescapability, that no corner of American life remains Trump-free – which itself amounts to a potent expression of presidential authority and command. “His power, in part,” said Mr. Burton, the former Obama aide, “comes from the attention that people give him, or that he forces on them.”

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Can it ever be too much?

In the fall of 2009, President Barack Obama appeared on David Letterman’s talk show, gave interviews to CNBC and Men’s Health magazine, and made the rounds of all five major network Sunday shows. Washington was abuzz about whether he was overexposed.

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That debate sounds quaint today. But the question of whether a president can be too visible remains open.

“The public is being desensitized” to Mr. Trump’s omnipresence, argued Mr. Brinkley, the historian. “It starts becoming blather. The enemy for Trump isn’t Democrats; it’s the public being bored with the show.”

Ms. Leavitt said that if there was a risk to his ubiquity, “President Trump would not be president right now.” She added: “He is a businessman who speaks his mind and tells it like it is, and sometimes people don’t like that. But obviously the vast majority of our country does, or else he wouldn’t be in this office.”

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During Mr. Trump’s first term, the public eventually tired of his frenzied pace. And in some ways, Mr. Trump appears to be slowing down physically as he approaches his 80th birthday in June (which he will celebrate in part by staging a nationally broadcast U.F.C. fight on the White House lawn). He has appeared to doze at some Oval Office meetings, and he is holding fewer formal public events than he did at this point in 2017.

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Still, Mr. Trump and his team have embraced the everywhere-all-at-once nature of modern media. Average Americans, busy with work and family, do not tune in for daytime news conferences or Cabinet meetings. And 6:30 p.m. newscasts and local newspapers are no longer the primary vessels by which Americans learn about their commander-in-chief.

Instead, politics now suffuses our lives as a kind of ambient noise – via TikTok videos, social media posts, YouTube talk shows and family Facebook messages – never fully separate from our leisure pursuits. “Right now the game is attention, in terms of what’s culturally breaking through,” Mr. Burton said. “The fact that so much message exists is the point.”

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Mr. Trump has both propelled this merging of culture and politics, and continues to strategically exploit it. In December, he became the first president to personally host the Kennedy Center Honors, comparing himself onstage to Johnny Carson and musing that he would do a better job than Jimmy Kimmel.

“This is the greatest evening in the history of the Kennedy Center,” Mr. Trump told the crowd. “Not even a contest. There has never been anything like it.”

His performance will air in prime time on CBS on Dec. 23.

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Photo and video sources: Graham Dickie/The New York TimesDoug Mills/The New York TimesRoll Call Factba.sePBSMauro Pimentel/Agence France-Presse — Getty ImagesKenny Holston/The New York TimesThe New York TimesAnnabelle Gordon/ReutersEric Lee/The New York TimesFoxCheriss May for The New York TimesWilfredo Lee/Associated PressMargo Martin, via StoryfulMark Abramson for The New York TimesGlobal NewsAl Drago/Getty ImagesFox NewsDave Sanders for The New York TimesPete Marovich for The New York TimesTed Shaffrey/Associated Press Show all

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Why is Trump’s media company getting involved with nuclear power?

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Why is Trump’s media company getting involved with nuclear power?

President Trump’s media company is merging with a nuclear fusion energy firm in a $6-billion deal aimed at generating more power amid growing demand from power-hungry artificial intelligence data centers.

The merger between Trump Media & Technology and TAE Technologies could lead to one of the world’s first publicly traded fusion energy companies, the two companies said Thursday.

What is TAE Technologies?

TAE Technologies is a private company based in Foothill Ranch, Calif. It has been raising funds for commercial-scale nuclear fusion, a method of energy production that supporters say could revolutionize access to electricity. Founded in 1998, the company has built and operated five fusion reactors and raised more than $1.3 billion.

Fusion uses the same process that powers the sun to produce potentially limitless energy. Experts say it hasn’t been achieved on a large scale because the process is volatile and expensive. TAE is trying to develop the technology needed to reduce the size, cost and complexity of fusion reactors.

“Our talented team, through its commitment and dedication to science, is poised to solve the immense global challenge of energy scarcity,” TAE Chief Executive Michl Binderbauer said in a statement. “Recent breakthroughs have prepared us to… commercialize our fusion technology.”

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What is the political history of Truth Social?

Truth Social was launched in 2022 as Trump created an alternative to mainstream social media, which was increasingly restricting and blocking his posts and profiles, as well as those of his allies and supporters. It began trading on the Nasdaq stock exchange through a 2024 merger with a special purpose acquisition company.

While most social media platforms have lifted restrictions on Trump’s posts, he still primarily posts on his own platform.

Though Trump and companies he is associated with control more than a 40% stake in the company, much of his investment is managed by others to avoid a conflict of interest during his term as president. Some analysts suggest his indirect association with a new company in a highly regulated industry could also lead to issues.

TAE will need significant investment and regulation to advance, which makes Trump’s ties a major conflict, Richard Painter, a former White House ethics lawyer in the George W. Bush administration, told the Associated Press.

“He’s jumping into this industry just like he jumped into cryptocurrency a couple of years ago,” Painter said. “Just as the United States government is gonna get all involved in it. And it’s so obvious that there’s a huge conflict of interest.”

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Trump Media shares, which had fallen more than 80% from their 2024 peak, have skyrocketed around 50% since the deal was announced.

The company now has a market value of more than $4.5 billion.

Why are the companies merging?

The parent company of Trump’s social media site, Truth Social, Trump Media & Technology, previously had little to do with energy production. The company agreed to merge with Alphabet-backed TAE Technologies, with the aim of paving the way for easier access to abundant electricity.

The merger aims to help both companies diversify and raise more money.

It is an attempt to combine Trump Media’s “significant access to capital” with TAE’s “leading fusion technology,” the companies said in a release.

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They plan to begin construction in 2026 on the first-ever utility-scale fusion power plant.

“Fusion power plants are expected to provide economic, abundant and dependable electricity that would help America win the AI revolution,” the release said.

The boom in popularity of AI chatbots such as ChatGPT has created a seemingly insatiable new demand for power.

The Georgia Institute of Technology says modern AI data centers use as much electricity as a small city. As AI models grow, they demand even more power.

What are the terms of the deal?

The all-stock transaction announced this week values each share of TAE Technologies at $53.89, although it is a private company. Trump Media has agreed to provide $200 million in cash to TAE upon closing, expected in mid-2026.

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When the merger is complete, TAE and Trump Media shareholders will each own about 50% of the combined company.

Trump Media will be the holding company for TAE, TAE Power Solutions and TAE Life Sciences.

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U.S. Space Force awards $1.6 billion in contracts to South Bay satellite builders

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U.S. Space Force awards .6 billion in contracts to South Bay satellite builders

The U.S. Space Force announced Friday it has awarded satellite contracts with a combined value of about $1.6 billion to Rocket Lab in Long Beach and to the Redondo Beach Space Park campus of Northrop Grumman.

The contracts by the Space Development Agency will fund the construction by each company of 18 satellites for a network in development that will provide warning of advanced threats such as hypersonic missiles.

Northrop Grumman has been awarded contracts for prior phases of the Proliferated Warfighter Space Architecture, a planned network of missile defense and communications satellites in low Earth orbit.

The contract announced Friday is valued at $764 million, and the company is now set to deliver a total of 150 satellites for the network.

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The $805-million contract awarded to Rocket Lab is its largest to date. It had previously been awarded a $515 million contract to deliver 18 communications satellites for the network.

Founded in 2006 in New Zealand, the company builds satellites and provides small-satellite launch services for commercial and government customers with its Electron rocket. It moved to Long Beach in 2020 from Huntington Beach and is developing a larger rocket.

“This is more than just a contract. It’s a resounding affirmation of our evolution from simply a trusted launch provider to a leading vertically integrated space prime contractor,” said Rocket Labs founder and chief executive Peter Beck in online remarks.

The company said it could eventually earn up to $1 billion due to the contract by supplying components to other builders of the satellite network.

Also awarded contracts announced Friday were a Lockheed Martin group in Sunnyvalle, Calif., and L3Harris Technologies of Fort Wayne, Ind. Those contracts for 36 satellites were valued at nearly $2 billion.

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Gurpartap “GP” Sandhoo, acting director of the Space Development Agency, said the contracts awarded “will achieve near-continuous global coverage for missile warning and tracking” in addition to other capabilities.

Northrop Grumman said the missiles are being built to respond to the rise of hypersonic missiles, which maneuver in flight and require infrared tracking and speedy data transmission to protect U.S. troops.

Beck said that the contracts reflects Rocket Labs growth into an “industry disruptor” and growing space prime contractor.

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