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They quit their day jobs to bet on current events. A look inside the prediction market mania
Logan Sudeith, 25, estimates he clocks about 100 hours a week on prediction markets.
Evan Frost for NPR
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Evan Frost for NPR
Ask Logan Sudeith how many bets he places in a week and he’ll laugh. It’s a comical line of questioning for the 25-year-old former financial risk analyst, who estimates he clocks about 100 hours a week on prediction markets Kalshi and Polymarket. After a while, understandably, some of the bets blur together. What are his net profits, though? That’s a number he’s got at the ready.
“Last month, I made $100,000,” said Sudeith, who does most of his trading from his laptop while bed-lounging in his Atlanta apartment. He’s executing so many orders on the sites, he says, that he has no time to cook. So he DoorDashes every meal.
“My last salary was $75,000 a year, so I left my job to trade full time,” he said
Some of his biggest hauls in recent months include lucrative stakes on Time Magazine’s person of the year ($40,236), the most-searched person on Google last year ($11,083) and a wager on the New York City mayoral race ($7,448). And of course, a couple thousand here, a couple thousand there on questions like, how many times will a sports announcer say “air ball”? And will President Trump use the phrase “drill baby drill” at an upcoming press conference? (Traders had $500,000 on the line on this market.)
“I’m not a fan of Trump, though I do spend most of my day listening to him and tracking what he is doing,” said Sudeith, noting that whatever candidate in the next presidential race is the most friendly to prediction markets has his vote. “I could be a single-issue voter. If they’re super-super heavy anti-prediction markets, it would be hard for me to vote for them.”
Sudeith says he made $100,000 last month on prediction market apps.
Evan Frost for NPR
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Evan Frost for NPR
The boom of online prediction markets is being driven by the Sudeiths of the world. He’s one of millions of traders logging on every day to services like Kalshi and Polymarket to place high-dollar and incredibly risky bets on the outcome of the world in real time, whether it’s an award host’s turn of phrase to the number of migrants the U.S. will deport this year.
Much like previous financial crazes around meme stocks and NFTs, true believers view prediction markets through a stick-it-to-the-man prism. It’s a movement against the elite establishment, they say, whether it’s the mainstream media, pollsters or government agencies. This growing group of renegade traders maintain that core truths emerge only after thousands of people express their opinions with their pocketbooks.

“Markets are the most efficient way to get to real information,” Sudeith said. “If you’re watching on election night, I think you’ll know who the winners are before the news can report it.”
While the industry may position itself an alternative to the mainstream, the mainstream is embracing it.
CNN and CNBC have struck deals to incorporate Kalshi prediction markets into coverage. The Wall Street Journal‘s owner, Dow Jones, is partnering with Polymarket, as did the Golden Globe awards this year, with announcers updating viewers on Polymarket odds before every commercial break.
Founders of the prediction markets apps say they enable people to turn their opinion into a financial hedge against things like inflation or a government shutdown, yet skeptics say that is twisty and self-serving logic.
“They are gambling sites no different than FanDuel or DraftKings, a corner bookie, or a casino in Las Vegas,” said Dennis Kelleher, chief executive of Better Markets, a nonprofit that pushes for Wall Street reform.
Kalshi says ‘there’s no house,’ not all agree
Traditional gambling often means wagering against “the house,” where the casino acts like the banker, extracting fees and maintaining a competitive edge.
Prediction markets like Kalshi say they’re different.
Advertisements by the company Kalshi predict a victory for Zohran Mamdani in the New York City mayoral election before the polls closed on Nov. 4, 2025.
Olga Fedorova/AP
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Olga Fedorova/AP
Here’s how they work: A staff member creates “a market,” often after one has been suggested by a user, like what will President Trump say at his next Oval Office briefing?
Then anyone can propose a “strike,” the lingo for a term that’s being bet on, whether, for instance, Trump will say “Greenland,” or “Minnesota,” or some other word or phrase.
Kalshi staff pick what terms will be bet on for both sides of that “yes” and “no” wager.

In order to work, however, there needs to be money on both the “yes” and the “no” side of the market, so Kalshi relies on institutional partners, like the hedge fund Susquehanna International, or everyday users with large enough portfolios to front the cash. This is called being a “market maker.” Kalshi provides financial perks and data access to traders who do this.
But because traders are competing with other traders, Kalshi argues there is no house involved in these transactions.
Several federal lawsuits against Kalshi have challenged this notion, claiming that the Wall Street firms that Kalshi taps are indistinguishable from a traditional “house.”
One suit filed this month in the Northern District of Illinois highlights that the company itself has a separate entity, Kalshi Trading, that supplies cash on the opposite side of trades.
“Thus, Kalshi users are betting against the house exactly the same way it would in a brick-and-mortar casino,” wrote lawyer Russell Busch in the complaint.
Kalshi denies this. Company spokeswoman Elisabeth Diana told NPR that market makers merely price bids and asks and do not have a competitive advantage.
“Market making is completely different from being a house, because a house has monopoly pricing power, whereas market makers compete with thousands of other market makers to take bids,” she said.
The Trump family invests in prediction markets. The administration is taking a friendly policy stance
While the Biden administration sought to rein in this industry, Trump’s regulators are breaking down barriers to allow it to flourish.
More than $2 billion is now traded every week on Kalshi, an amount the company says is 1,000% higher compared to the Biden years.
Polymaket, which was forced in 2022 to shut down in the U.S. for operating as an unlicensed betting site, recently won the Trump administration’s blessing to re-launch in the U.S.
The Trump family is also getting in on the action. The president’s son, Donald Trump Jr., is on the board of Polymarket, and his venture capital firm invests in the company. He is also a “strategic adviser” to Kalshi. Truth Social, the president’s social media site, is planning to launch its own prediction market called Truth Predict.
Donald Trump Jr. speaks during The Bitcoin Conference in Las Vegas on May 27, 2025.
Ian Maule/AFP via Getty Images
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Ian Maule/AFP via Getty Images
The explosive growth and permissive regulatory environment has ignited a debate about the underbelly of an industry that essentially turns many features of modern life into potential monetary wins and losses. Fears persist that when elections, politics and foreign invasions become a gamble that insiders could abuse their access for profit and market odds could influence what actually happens.
Then there’s the most prosaic, but perhaps more immediate worry: That the prediction markets gamify trading with slickly designed apps, one-click checking account deposits and constant push alerts, catering to compulsive online bettors. They’re not unlike other app-based trading platforms, but now almost anything is a potential betting opportunity, which economists and other financial experts say can enable a new generation of gambling addicts.
While individual bets on Kalshi are not public, the app has a leaderboard showcasing top profit winners.
That offers hope to some traders who turn to Discord and Reddit to discuss how losses have set them back.
“I’m down 2000 this week when I was up 1200 last week,” wrote a Kalshi trader who goes by Educational_Pain_407 on Reddit. “Lost it all and keep trying to claw it back. So I don’t know what to tell you but right now I don’t have enough to pay my bills in my bank account so I can’t bet even if I wanted to.”
There are three federal lawsuits against Kalshi seeking class action status alleging the apps have sucked young traders into gambling addiction.
Officials at Kalshi have said if traders “lose their shirt that’s on them,” and even the Reddit user behind on his bills concedes it’s a matter of personal responsibility: “Live and learn and pay for your mistakes. The consequences of being an adult,” he wrote recently.
While online sportsbooks and gambling are nothing new, the rapid speed, volume of cash and ease at which transactions flow across prediction market apps set them apart from other forms of betting, according to legal and financial experts.
“Like sports betting, these platforms can be addictive. It is the adrenaline rush that the target demographic is chasing,” said Melinda Roth, a visiting professor at Washington and Lee University’s School of Law who studies prediction markets. “I do believe this is a looming public health crisis.”
Decoding the lingo: ‘Mogged,’ ‘Fudded,’ ‘PMT’
Evan Semet, 26, is another diehard prediction markets trader who left his salaried position in finance as a quantitative researcher after he started raking in six figures a month on Kalshi.”I don’t feel the need for another job at the moment,” he said.
His first golden ticket came via bets on the number of Transportation Security Agency screenings that happen across a certain period on Polymarket.
Evan Semet quit his job in finance to do prediction market trading full time.
Meredith Nierman/NPR
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Meredith Nierman/NPR
Semet said he set up a dedicated server through Amazon Web Services to host statistical models that he runs to help him decide where to place bets.
“It was pretty modelable,” he said, noting that he leans on the finance savvy he gleaned at a trading firm to make money on predictions. “Most day traders draw some shapes on a chart and think it has some statistical significance but it’s really just astrology,” he said. “They’re old-school gamblers going off of intuition. I try to be driven by statistics.”
To stay tapped in, he’s often toggling between multiple live trades on one screen and following a discussion among other traders on the social network Discord.
Keeping up on what’s happening there requires understanding a hyper-specific type of lingo that’s a blend of Generation Alpha and Gen Z slang, repurposed finance terminology and a grab-bag of other cultural influences from gaming to crypto to the gutter humor of fringe sites like 4chan.
If you’ve been out-maneuvered by another trader, you’ve been “mogged.”
If a market has “fudded,” people are selling their positions out of fear, uncertainty and doubt. A “rulescuck” is someone who is a stickler for the rules of a betting market and will try to win on a technicality.
A “bondsharp” is a well-known community member who frequently puts up money on the other side of a bet.
These are just a handful of the terms required to stay apace of the chats on Discord, where PMTs are often discussing their full port (prediction market trader, and full portfolio, of course).
“It is a good amount of terminology. It’s borrowing lingo and terms from stuff I’ve heard at real trading firms mixed with online pop culture,” Semet said.
“Sometimes I prefer to not look at all and see how I did later,” Semet said.
Meredith Nierman/NPR
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Meredith Nierman/NPR
Prediction market trading can be a compulsive sport for many of them, who admit they can be dopamine junkies. Others prefer to avoid the pressure-cooker feeling of watching a bet win or lose live.
“It’s an antsy, gambling-like feeling watching it all happen live,” Semet said. “It’s intense, almost feels like the fog of war, trying to decide what to do,” he said. “Sometimes I prefer to not look at all and see how I did later.”
How predictions markets got into politics
Kalshi’s big day came, as it were, on Election Day in November 2020.
That’s when they got word that Trump’s Commodity Futures Trading Commission, which regulates futures contracts, greenlit it as a “designated contract market,” a blessing that essentially gave the platform a license to operate as a financial exchange.
It was a long time coming.
For years before that, Kalshi’s co-founders Tarek Mansour and Luana Lopes Lara, former Wall Street traders who met at MIT, had been battling a skeptical CFTC, which had long rejected similar applications over concerns that an events contract platform would operate a type of gambling outside the purview of state gambling commissions. Regulators also feared the bets invited insiders to rig the outcomes of events from sports to elections.
Tarek Mansour, (left) and Luana Lopes Lara are co-founders of Kalshi.
Alexey Yurenev/Bloomberg via Getty Images
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Alexey Yurenev/Bloomberg via Getty Images
As Kalshi hired lawyers and lobbyists leading up to their CFTC approval, another prediction market, where most are betting with cryptocurrencies, Polymarket, was exploding in growth. It, however, had not bothered to even try to receive federal buy-in. The Biden administration shut down the exchange for operating without a license. Now, Polymarket has the CFTC on its side, and is staging a U.S. comeback.
Two developments helped Polymarket’s return: the company acquired a little-known derivatives exchange QCX, which had already obtained CFTC approval. And the Trump administration’s CTFC and Justice Department abandoned investigations into Polymarket.
States, however, are on the attack. Massachusetts has sued to push Kalshi out of the state. Eight other states, including New York, New Jersey and Maryland, have sent the company cease and desist letters alleging that it is operating as an illegal and unlicensed sports gambling site. The motivation is clear: Gambling brings in serious tax revenue for states, while prediction markets bring in none.
For both Kalshi and Polymarket, one of the most controversial areas of prediction market trading is elections, an issue Biden-era regulators took Kalshi to court over.
Under the 1936 Commodity Exchange Act, which was updated in 2008 after the financial crisis, future event contracts cannot involve terrorism, assassinations or “games,” but political betting is not explicitly banned.
The Polymarket prediction market website is seen on a computer screen.
Wyatte Grantham-Philips/AP
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Wyatte Grantham-Philips/AP
Biden administration lawyers argued that placing wagers on races amounted to a game, a word that is not defined at all in the law. Election bets, the regulators contended, could turbocharge the spread of political misinformation and create financial incentives for voters to cast a ballot even when it’s contrary to a voter’s political views.
It also puts the CFTC in the awkward position of having to investigate news, whether real or fabricated, that moves a prediction market. Former CFTC officials told NPR that the agency has never been equipped to be “an election cop.”
The federal appeals court in Washington, D.C. rejected that framing and handed Kalshi a major victory. The court also pointed out that the harm these markets would cause the government was not “concrete” enough.
The Trump administration dropped the appeal, unleashing what is expected to be an unprecedented torrent of prediction market cash into this year’s midterm elections, which is raising alarms among those pushing for stricter regulations on this industry.
“AI, deepfakes, and other nefarious activities to attack candidates could easily impact the betting activity and odds, as well as the actual outcome of elections,” said Kelleher of Better Markets. “They don’t really care who wins or loses. They only care about the volume of bets and driving that volume as high as possible.”
Regulators appear unprepared. The CFTC usually has five commissioners but currently only has one. Meanwhile, Kalshi’s board includes former CFTC Commissioner Brian Quintenz, who was among the officials who gave the platform its federal approval in 2020.
Former CFTC Commissioner Kristin Johnson, who left the agency in 2025, said that lack of commissioners comes on top of high levels of turnover among the most senior staff lawyers.
“We’re essentially asking the CFTC to get involved in engaging and policing an element of our democratic process that we really haven’t thought carefully enough about,” Johnson said.
Insider trading scrutiny grows
Before a U.S. operation ousted Venezuelan leader Nicolás Maduro, one trader on Polymarket banked a nearly half-million-dollar profit on a bet Maduro would not remain president for long.
While the trader’s identity remains a mystery, speculation continues to rattle around the internet about whether the person had insider information. The episode has renewed scrutiny on how the companies ensure bets aren’t rigged.
On Discord, when traders see a large bet placed that immediately stands out as an outlier, cries of “the market is insidered” are common. Proving it is another matter.
As is often the case on the platforms, open-shut evidence of insider trading is elusive. Kalshi requires a government-issued ID to sign up in order to trace any possible market manipulation back to a real person. Polymarket does not, but it has yet to publicly re-launch its U.S. app. Internal and third-party surveillance tools, the companies say, are on the lookout for unusual activity.
Congress has begun to take notice. Following the Maduro trade, Rep. Ritchie Torres, D-NY, and 30 other Democrats, sponsored legislation banning federal officials from using prediction markets to trade on policies or political outcomes using non-public information.
Being up against an insider is always a risk, said full-time prediction markets trader Semet.
“There’s always going to be someone who has more information than you, unless you’re the insider,” he said. “There are certain accounts that miraculously have every single Google and OpenAI release date nailed perfectly, and it’s like, all right, just don’t fade those people,” he said using the slang word for voting against another trader.
Being up against an insider is always a risk, said full-time prediction markets trader Semet.
Meredith Nierman/NPR
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Meredith Nierman/NPR
When asked if he thinks Kalshi and Polymarket are doing enough to combat insider trading, he gave a blunt assessment: “F*** no,” Semet said. “I really don’t think they care.”
“Tailing,” or making a bet joining in on a suspiciously large bet is common on the platforms. Bloomberg on Monday reported on a new tool that allows traders to get alerts when anomalous transactions occur so they can potentially cash in on what could be a winning wager.
From the vantage point of these traders, nearly everything has a trading implication.
And that kind of thinking can fuel conspiratorial theories about why something did or did not happen.
Take, for instance, a recent White House press briefing in which press secretary Karoline Leavitt left the room seconds before hitting 65 minutes. To most, that was unremarkable.
Yet on Kalshi, that looked like a secret message, because many thousands of dollars in bets were at stake that she would cross the 65-minute mark.
The chatter about Leavitt was mentioned on CNBC, which got the attention of traders on Discord, who wondered if this or another incident will ever lead to a PMT, prediction market trader, testifying in Washington about rigging the markets.
“PMT getting called before Congress,” wrote a Discord user, whose handle is “permanent resident of hell,” they added: “Let’s get a market on it.”
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Map: 5.1-Magnitude Earthquake Strikes off the Coast of California
Note: Map shows the area with a shake intensity of 3 or greater, which U.S.G.S. defines as “weak,” though the earthquake may be felt outside the areas shown. The New York Times
A moderately strong, 5.1-magnitude earthquake struck in the North Pacific Ocean on Wednesday, according to the United States Geological Survey.
The temblor happened at 5:45 a.m. Pacific time about 40 miles west of Petrolia, Calif., data from the agency shows.
As seismologists review available data, they may revise the earthquake’s reported magnitude. Additional information collected about the earthquake may also prompt U.S.G.S. scientists to update the shake-severity map.
Subsequent quakes have been reported in the same area. Such temblors are typically aftershocks caused by minor adjustments along the portion of a fault that slipped at the time of the initial earthquake.
Aftershocks detected
Quakes and aftershocks within 100 miles
Aftershocks can occur days, weeks or even years after the first earthquake. These events can be of equal or larger magnitude to the initial earthquake, and they can continue to affect already damaged locations.
The New York Times
When quakes and aftershocks occurred
Sources: United States Geological Survey (epicenter, aftershocks, shake intensity); LandScan via Oak Ridge National Laboratory (population density) | Notes: Shaking categories are based on the Modified Mercalli Intensity scale. When aftershock data is available, the corresponding maps and charts include earthquakes within 100 miles and seven days of the initial quake. All times above are Pacific time. Shake data is as of Wednesday, June 3 at 6:03 a.m. Pacific time. Aftershocks data is as of Wednesday, June 3 at 8:01 a.m. Pacific time.
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California’s primary for governor is undecided as candidates vie to be in the top two
Xavier Becerra, Democratic gubernatorial candidate for California, and Steve Hilton, Republican gubernatorial candidate for California, shake hands while arriving for a gubernatorial debate at KRON Studios in San Francisco in April.
Jason Henry/Getty Images North America
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Jason Henry/Getty Images North America
SAN FRANCISCO — The primary election for California governor is too close to call, with vote counting continuing Wednesday. Democrat Xavier Becerra and Republican business executive Steve Hilton lead the field with Democrat Tom Steyer in third place.
In California’s unusual primary system, all candidates, regardless of party, appear on a single ballot open to any registered voter. The top two candidates then move on to the general election, even if they’re from the same party. This year, voters had 60 names for governor to choose from.
The winner will lead the country’s most populous state, where leaders often take on national political prominence. Incumbent Gov. Gavin Newsom is at his two-term limit and could be a Democratic contender for president.
Becerra, former Health and Human Services secretary under President Joe Biden, pitched himself to voters as an experienced political leader who isn’t afraid of President Trump, but his lead caps one of the most surprising and dramatic comebacks in recent state political history. As recently as April, polls were showing Becerra — also a former member of Congress and California attorney general — languishing in single digits in a crowded field.
In his remarks at his watch party in Los Angeles, Becerra noted his underdog status.
“Here in Hollywood’s hometown, we love a good underdog success story,” he said, drawing parallels between his campaign and his immigrant parents’ success story in California. “Guess what? The underdog stayed in the fight. Like my parents, I never gave up. Never stopped putting one foot in front of the other. Never stopped believing in the beacon-like goodness of California. And thankfully, neither did you.”
Hilton is a former Fox News commentator who also served as a political adviser to former British Prime Minister David Cameron. He was endorsed by President Trump in April, helping him to pull ahead of Riverside County Sheriff Chad Bianco, the other major Republican in the race. Hilton has campaigned on the idea that California needs change after 16 years under total Democratic control.
The race is narrowing down after a tumultuous campaign
At his watch party in Huntington Beach, the British-born candidate — who became an American citizen five years ago — said it was the “honor of his lifetime” to receive over 1 million votes so far.
“Change is coming to California and it’s long overdue,” Hilton said. “We’re not there yet, but it’s looking good. It looks very much as if Californians really will have the chance to vote for change in November and take our state in a new direction.”
Democratic billionaire activist Steyer spent more than $213 million of his own money to boost his candidacy and push a progressive, populist message. While he was trailing Becerra and Hilton on Tuesday night, he said at his watch party in San Francisco that he remains confident he can close the gap in the days ahead.
“Together, we’ve scared the hell out of the corporate interests used to getting their way,” Steyer said. “It might take some time to figure out where this is going. We’re going to wait until every ballot is counted. We’re gonna give democracy a time to work. And we know we finished really strong.”
The early results are not certain to hold, in part because of unusual voting patterns in this primary election: Ballot-tracking data heading into Tuesday evening showed that Republicans were more likely to vote early by mail, while Democratic voters in this deep-blue state held onto their mail-in ballots or chose to vote in person. That’s the reverse of recent elections, which saw more Democrats voting by mail and Republicans tending to vote in person on Election Day.
The uncertainty on election night capped a race that remained crowded and unsettled to the end. To some extent, the race was defined by who wasn’t running.
Some of the state’s most high-profile Democrats — former Vice President Kamala Harris, U.S. Sen. Alex Padilla and California Attorney General Rob Bonta — all passed on a potential bid to succeed Newsom.
The race was disrupted in April when then-U.S. Rep. Eric Swalwell’s campaign for governor imploded amid allegations of sexual assault and harassment. Swalwell resigned from Congress shortly after the accusations surfaced and has denied assault allegations.
Swalwell had been gaining in polls and racking up high-profile endorsements, and his exit seemed to primarily benefit Becerra, who had been stuck in single digits in many polls. Ultimately, it quieted fears among Democrats who worried that the messy Democratic field could result in Bianco and Hilton winning the top spots in the June primary.
Marisa Lagos covers California politics at KQED and co-hosts the Political Breakdown show and podcast.
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Supreme Court reinstates Republican-favored Alabama congressional districts
The U.S. Supreme Court
Tasos Katopodis/Getty Images
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Tasos Katopodis/Getty Images
The Supreme Court on Tuesday cleared the way for Alabama to use a congressional district map favored by Republicans.
The court, in an unsigned order, overturned a three-judge district court panel that found that the map is “tainted by intentional race-based discrimination.” The court’s three liberals publicly dissented.
The ruling means that Alabama’s 2026 midterm elections will feature six Republican-leaning districts and one Democratic-leaning one, as opposed to a map with only five safe Republican seats. Democrat Shomari Figures, who represents Alabama’s Second District, will likely lose his seat as a result of the high court’s ruling.
The story of Alabama’s congressional map is long and tortured. It began in 2021, when the state implemented a new map to account for population changes in the census. The map featured only one majority-black district out of seven, even though the state is more than one-quarter Black.
Voters immediately sued, claiming the map illegally diluted minority votes in violation of the Voting Rights Act and the Constitution. Lower court judges agreed, ruling that the state must draw a map with two districts where Black voters have a realistic chance of electing their candidate of choice. The Supreme Court more than once has ordered Alabama to draw a compliant map.
But the state has refused and instead continued to litigate the case. On Tuesday, that tactic paid off.
What changed? In April, the Supreme Court’s conservative supermajority all but gutted what remains of the Voting Rights Act, ruling that states cannot purposefully draw districts that are majority-minority.
Alabama then asked the high court to reinstate the state’s old map, under the theory that this new ruling meant that it was permissible to use a map with only one majority-Black district. In an unsigned, unexplained order in May, the high court essentially reversed its previous opinions, and allowed Alabama to use the old map for the upcoming midterm elections.
This set off a flurry of activity in Alabama. By the time the Supreme Court issued its May order, absentee balloting had already begun, using the court-drawn map. So Republican Governor Kay Ivey cancelled elections and scheduled a special primary for August for the affected congressional races.
The case, however, was not over.
In its ruling, the Supreme Court had ordered a lower court panel to continue evaluating Alabama’s map in light of its recent Voting Rights Act decision. And just 15 days after that order, the panel, composed of three Republican judges—two of them Trump appointees—concluded unanimously that even under the Supreme Court’s new standards, the plan for a single black district was “intentionally discriminatory.”
So, once again, Alabama returned to the Supreme Court, arguing that the map was partisan, not racially discriminatory. In short, that the Republican legislature simply drew the map to elect more Republicans. And that under the Supreme Court’s new interpretation of the Voting Rights Act, the GOP map should be allowed to stand.
The court’s conservative agreed, writing that the lower court “did not heed the presumption of legislative good faith.”
The court’s three liberals publicly dissented, castigating the conservative majority for failing to abide by its 2006 decision in the case of Purcell v. Gonzalez. That decision declared that courts should not change election rules too close to an election.
Justice Sonia Sotomayor, in her dissent, said the court “debases the democratic process” and “corrodes the rule of law by rewarding Alabama’s gamesmanship and outright defiance of court orders.”
Tuesday’s decision is the latest in a series of Supreme Court rulings that could well reshape the 2026 midterm elections, making it much harder for Democrats to prevail.
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