Politics
'Politics is bad for business.' Why Disney's Bob Iger is trying to avoid hot buttons
Bob Iger wants out of the culture wars.
Walt Disney Co. and its chief executive have made a sharp pivot since doubling down on diversity and inclusion efforts in the wake of George Floyd’s murder in Minneapolis four and a half years ago. At the time, Disney’s top executives, including then-Chairman Iger, vowed in a message to employees: “We intend to keep the conversation going … for as long as it takes to bring about real change.”
The Magic Kingdom dropped its pomp greeting to fans for its nightly fireworks display. “Good evening, ladies and gentlemen, boys and girls” became a gender-neutral salutation to “dreamers of all ages.” Pixar’s animated movie, “Lightyear,” included a brief kiss between two women characters; and Disney’s animated film, “Strange World,” featured the company’s first biracial queer teen hero.
But in the past week, Disney acknowledged that a transgender athlete storyline had been removed from an upcoming Pixar animated series, “Win or Lose,” about a middle-school softball team. In a statement, Disney said it recognized “many parents would prefer to discuss certain subjects with their children on their own terms and timeline.”
And Iger signed off on the settlement of a high-profile defamation lawsuit brought last spring by President-elect Donald Trump, amid howls from journalists that the owner of ABC News had caved to political pressure.
Disney agreed to pay $1 million for Trump’s legal fees and donate another $15 million for Trump’s future presidential library.
Trump sued ABC News and anchor George Stephanopoulos last spring after the journalist asserted during an on-air interview that a civil court jury had found Trump “liable for rape” in a case brought by advice columnist E. Jean Carroll. Instead, New York jurors determined Trump was liable for “sexual abuse.”
Disney Chief Executive Bob Iger.
(Jay L. Clendenin/Los Angeles Times)
Some First Amendment experts believed ABC had a winning case, in part, because of a high hurdle for public officials to prove defamation.
The network “might well have prevailed if they had hung in there,” prominent journalist Margaret Sullivan wrote in a Substack opinion piece. “Instead, this outcome encourages Trump in his attacks on the press — and he needs no encouragement.”
Disney declined to comment for this story or make Iger available for an interview.
People close to the company, who were not authorized to comment, said Disney’s general counsel had recommended the settlement with Trump and that the decision to remove the transgender storyline from “Win or Lose” had been made months earlier.
A bruising fight with DeSantis
Disney’s retrenchment comes nearly three years after it found itself sinking in political quicksand.
In early 2022, Disney became a target for Florida Gov. Ron DeSantis after then-Chief Executive Bob Chapek waffled on a response to a Florida law aimed at preventing classroom discussions about sexual identity. Chapek’s instinct was to stay out of the fray and he initially defended the company’s initial silence, saying in a letter to Disney employees that corporate statements “do very little to change outcomes or minds.”
Such proclamations are “often weaponized by one side or the other to further divide and inflame,” Chapek wrote.
But after loud protests from employees and activists — and a Twitter post from then-retired Iger, who warned the Florida legislation “will put vulnerable, young LGBTQ people in jeopardy” — Chapek reversed course.
DeSantis seized on Disney’s shifting stance and branded the company as “woke.”
In conservative circles, the pejorative label stuck.
“When you assign a private entity to a political team, then very quickly people will begin to view things in that light,” said Michael Binder, a University of North Florida political science professor who studied the Disney-DeSantis dispute.
Iger, who returned as chief executive two years ago to replace Chapek, recognized the existential threat.
“Our primary mission needs to be to entertain,” Iger said during the company’s 2023 investor meeting. “It should not be agenda-driven.”
Iger increasingly has stressed the importance of steering the company away from overt political messaging.
“The stories you tell have to really reflect the audience that you’re trying to reach but that audience, because they are so diverse … can be turned off by certain things,” Iger said during an April appearance on CNBC. “We just have to be more sensitive to the interests of a broad audience. It’s not easy.”
Disney’s nearly two-year fight with DeSantis was bruising.
“DeSantis was using Disney as a political foil to make a case for his run for presidency,” said Binder, the director of University of North Florida’s Public Opinion Research Lab. “That was not something that we had seen before: Governors and elected officials outwardly attacking private companies, particularly a Republican going after a company.”
University researchers found DeSantis’ “woke” campaign against Disney had gained traction, at least among conservatives — despite the fact that Disney has long been one of Florida’s largest employers and a pillar of its tourism economy.
In a public opinion poll in early 2023 of Florida registered voters, the Public Opinion Research Lab found that only about 27% of Republicans in the state had a “favorable” view of Disney. Meanwhile, 76% of the Democrats polled were fans of the Mouse House.
“There was a huge split, and that’s not great for a company that’s trying to market to everybody,” Binder said.
Republican lawmakers closed ranks with DeSantis and Disney lost its unique land-use authority in Central Florida. Disney filed a First Amendment lawsuit the following year, arguing that DeSantis and state Republicans had waged a concerted campaign to punish Disney for exercising its speech rights to criticize Florida’s anti-LGBTQ+ legislation.
Earlier this year, a federal judge threw out Disney’s First Amendment lawsuit.
Disney settled with Florida, but the DeSantis episode brought into stark relief the hazards of promoting the company’s values to a global audience during polarizing times.
“Disney provides a product: entertainment,” said Charles Elson, a former director at the Weinberg Center for Corporate Governance at the University of Delaware. “It shouldn’t be about politics.”
Besides, Elson said, it becomes messy and costly for companies to extricate themselves after taking a political stand.
“When you get into politics, you are making a statement,” Elson said. “And when you get out, that also becomes a statement.”
Iger has long championed Disney’s efforts to diversify its casts and storylines.
The 101-year-old company introduced its first Black princess in 2009. Nearly a decade later, it released the movie “Coco,” which was rich in Latino culture. Its 2018 Marvel film, “Black Panther,” became a juggernaut, earning $1.3 billion in global ticket sales.
The original “Moana,” which was inspired by Polynesian mythology, earned the mantle of most streamed movie on Disney+. The sequel, released over Thanksgiving weekend, has shattered box office records and has already raked in $750 million internationally.
“Our businesses create entertainment, travel and consumer products whose success depends substantially on consumer tastes and preferences that change in often unpredictable ways,” the company said in its most recent annual report.
“Consumers’ perceptions of our position on matters of public interest, including our efforts to achieve certain of our environmental and social goals, often differ widely and present risks to our reputation and brand,” the report added.
A cloudy defamation case
Disney has since joined a growing list of businesses that have opted to stand down rather than antagonize the president-elect — to the dismay of some First Amendment experts who believed Disney could have defeated Trump‘s defamation claims in the ABC News case.
Last year, a federal judge in Florida tossed out a lawsuit Trump filed against CNN, which sought $475 million in punitive damages. Trump claimed his reputation had been sullied by the network’s references to his efforts to overturn the results of the 2020 election as “the Big Lie.”
But defending Stephanopoulos’ statements may have been more fraught, according to people familiar with Disney’s internal deliberations.
Disney’s General Counsel Horacio Gutierrez and other high-level executives grew concerned after the judge in the case last July denied Disney’s motion to dismiss the case, according to one knowledgeable insider. In that ruling, U.S. District Judge Cecilia M. Altonaga wrote that “a reasonable jury could interpret Stephanopoulos’s statements as defamatory.”
Altonaga was appointed by former President George W. Bush.
Disney also figured it risky to present the case to a jury in South Florida, where Trump is particularly popular, the knowledgeable people said. Polls also have found a growing lack of trust in the news media.
An ‘entertainment-first’ company
Disney lawyers recognized that some legal conservatives might champion the case to the U.S. Supreme Court, where three Trump appointments sit. What’s more, U.S. Supreme Court Justice Clarence Thomas has expressed a desire to overturn the landmark New York Times vs. Sullivan court decision, which would have been at the heart of the ABC News case.
Disney didn’t want to jeopardize 60 years of press freedoms bestowed through that decision. Not to mention the harm to Disney’s and ABC’s image by trying to withstand Trump broadsides during his second term. CNN, in particular, sustained reputational damage after dueling with Trump, who labeled the cable news channel “fake news.”
“You don’t want to get in a fight with the head of a government that regulates you,” Elson said. “Politics is bad for business.”
Disney is trying to walk — but not cross — the line. During its meeting with shareholders earlier this year, Iger said he believes Disney has “a responsibility to do good in the world.”
“The Disney company can have a positive impact on the world … fostering acceptance and understanding of … people of all different types,” Iger told CNBC last spring. “But we need to be an entertainment-first company.”
Politics
Combustible Republican Senate primary in Texas heading into overtime
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AUSTIN, TEXAS – The expensive and contentious battle for the Republican Senate nomination in Texas is headed to a May runoff, after none of the three major candidates in the crowded field of contenders topped 50% of the vote in Tuesday’s primary election.
Longtime incumbent Sen. John Cornyn will face off with Texas Attorney General Ken Paxton after they finished in the top two in the primary, with Rep. Wesley Hunt in third place, according to unofficial primary election results.
The winner will face off with either progressive firebrand Rep. Jasmine Crockett, a vocal critic and foil of President Donald Trump, or rising star state Rep. James Talarcio, who were vying for the Democratic Senate nomination. Both were trying to become the first Democrat in nearly four decades to win a Senate election in right-leaning Texas.
This year’s Senate showdown in Texas is one of a handful across the country that could determine if Republicans hold their majority in the chamber in the midterm elections. The GOP currently controls the chamber 53-47.
The Cornyn campaign and aligned super PACs spent nearly $100 million to run ads attacking Paxton and Hunt, with the senator charging in the closing weeks of the primary campaign that Democrats will flip the seat in the general election if Paxton’s the GOP’s nominee.
Cornyn, his allies, and the National Republican Senatorial Committee, the campaign arm of the Senate GOP, repeatedly pointed to the slew of scandals and legal problems that have battered Paxton over the past decade, as well as his ongoing messy divorce.
TRUMP’S IRAN STRIKE ROCKS SENATE PRIMARIES IN TEXAS
“If I’m the nominee, I’ll help President Trump by making sure that we carry the five new congressional seats as well as maintain this Senate seat and will help him continue his agenda through the last two years of his term of office,” Cornyn touted in a Fox News Digital interview on Sunday.
Sen. John Cornyn, R-Texas, speaks during a campaign stop in The Woodlands, Texas, Saturday, Feb. 28, 2026. (Annie Mulligan/AP Photo)
And, he argued, “If the Democrats win, because we nominate a flawed candidate with incredible baggage like the attorney general, then that last two years of [Trump’s] agenda is jeopardized, as well as everybody down ballot that we need to continue to elect as Republicans.”
PAXTON DEMANDS STRICTER VETTING AFTER DEADLY TEXAS RAMPAGE
Paxton, a MAGA firebrand who grabbed significant national attention by filing lawsuits against the Obama and Biden administrations, pushed back, telling Fox News Digital on the eve of the primary that “I’m 3-0. I’ve won three statewide races.”
Pointing to public opinion polls suggesting he has the edge over Cornyn, Paxton argued, “it’s really easy for him to say that when he’s losing a primary, because he’s not delivered for the people of Texas, and he’s going to find out tomorrow what that means. He’s going to end up losing.”
Texas Attorney General Ken Paxton, a Republican Senate candidate, speaks to supporters at a campaign event on primary eve, in Waco, Texas, on March 2, 2026. (Paul Steinhauser/Fox News)
“This idea that I can’t win a race is not true… there’s no evidence of what he’s saying is being true. As a matter of fact, the evidence is just the opposite,” Paxton added.
Paxton was boosted a few weeks ago by an endorsement from the political wing of Turning Point USA, the powerful grassroots conservative organization that was long steered by the late Charlie Kirk.
The GOP nomination battle was a two-person race until Hunt, a West Point graduate and military veteran who flew helicopters during his service and who represents a solidly red district in suburban Houston, announced his candidacy last autumn.
“I think there’s going to be a runoff, no matter what happens,” Cornyn predicted on Sunday.
Paxton, speaking to supporters on primary eve, touted that “if we go to a runoff, the odds get better for me,” as he pointed to what will likely be a smaller electorate for the May 26 runoff.
Republican Senate candidate Rep. Wesley Hunt of Texas, at a primary eve campaign event, in Houston, Texas on March 2, 2026 (Paul Steinhauser/Fox News)
Hunt, in a Fox News Digital interview on the eve of the primary, argued that he’s “the best candidate to win the primary and win the general.”
TRUMP’S IRAN STRIKE ROCKS TEXAS SENATE RACE AS DEMS DEMAND ‘WAR POWERS,’ GOP APPLAUDS PRESIDENT
And pointing to the negative ads from Cornyn and his allies that have targeted him the past couple of weeks, Hunt said, “They have spent tens of millions of dollars against me in the state of Texas, which means that I must be doing the right thing, and I must be a threat. DC will not decide who will be the next senator from Texas. Texans will and that’s why I got in this race.”
But Hunt fell short, coming in third place.
Trump, whose clout over the GOP remains immense, stayed neutral to date in the Republican primary. All three candidates, who sought the president’s endorsement, were in attendance Friday as Trump held an event in Corpus Christi, Texas.
“They’re in a little race together,” Trump said of Cornyn and Paxton. “You know that, right? A little bit of a race. It’s going to be an interesting one, right? They’re both great people, too.”
Trump also complimented Hunt, and said that all three contenders were engaged in an “interesting election.”
President Donald Trump shakes hands with Sen. Ted Cruz, R-Texas, in a Whataburger restaurant in Corpus Christi, Texas, on Feb. 27, 2026. (Mandel Ngan/AFP via Getty Images)
While Trump stayed neutral, his top pollster, Tony Fabrizio, helped the Cornyn campaign. And veteran Republican strategist Chris LaCivita, who served as co-campaign manager of Trump’s 2024 White House bid, consulted for a top Cornyn-aligned super PAC.
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The big questions going forward as the runoff campaign gets underway are whether Trump will make an endorsement, and whether the major outside groups that supported Cornyn will continue to throw resources into the extended nomination battle.
Politics
Israel believes Iran war could last months, testing U.S. resolve
NEW YORK — U.S. and Israeli officials are privately casting doubt on projections from the Trump administration that the war with Iran could end within a matter of weeks — instead warning that a months-long campaign may be required to destroy the country’s ballistic missile capabilities and install a pliant government, multiple sources told The Times.
The prospect of extended combat creates political risks and uncertainties for President Trump, whose penchant for dramatic, short-term military operations has suddenly given way to a full-scale assault on the Islamic Republic, shocking a MAGA base that for years supported his calls to end forever wars in the Middle East.
One Israeli official told The Times — despite internal guidance among Israeli officials to adhere to the U.S. president’s stated time frame — that the war “definitely could be longer” than the four-week window that Trump repeatedly offered to reporters.
A U.S. official said that in private conversations, top administration officials presume the campaign will require a longer runway now that remnants of Iran’s government have chosen to resist rather than acquiesce to Washington.
Protracted war was always a possibility. Trump was presented with U.S. intelligence assessments gaming out the potential conflict that emphasized how highly unpredictable the results of an attack would be — an analysis the intelligence community believes has borne out on the ground in the chaotic early days of the conflict.
A longer conflict could create diplomatic space between Trump and Israel’s prime minister, Benjamin Netanyahu, who has advocated for the overthrow of the Islamic Republic for over 30 years.
The Israeli leader has succeeded in convincing Trump to take military actions in Iran that American presidents have rejected for decades, from bombing its nuclear facilities to assassinating its leadership, including Ayatollah Ali Khamenei, who was killed in an opening strike over the weekend.
Goal of a change of government fades
Yet, mere days into the war, White House officials have all but ceased references to a democratic spring that could sweep Iran’s government aside.
A set of four U.S. goals for the mission no longer calls for changing the regime itself. Still, Netanyahu’s government remains keen on replacing the government, and the nation’s longest-serving premier sees the current war as his best opportunity to do so, one official said.
Speaking with reporters Tuesday, Trump rejected reports that the Israelis had convinced him to launch the attack.
“No, I might have forced their hand,” Trump said. “Based on the way the negotiations were going, I think they were going to attack first, and I didn’t want that to happen. So if anything, I might have forced Israel’s hand, but Israel was ready, and we were ready, and we’ve had a very, very powerful impact because virtually everything they have has been knocked out.”
In a series of interviews this week, Trump said he had been given projections of a four- or five-week war, while noting he is prepared to go longer if necessary.
Michael Rubin, a former Pentagon official who is Iran expert at the American Enterprise Institute, said that projecting a deadline to the conflict at its start would be a strategic mistake for the Trump administration, as it would in effect give Iran’s remaining leadership an end date to wait out the fighting.
“Successive presidents have shown that America has strategic attention deficit disorder,” Rubin said. “If that was the case in Iraq and Afghanistan, it’s especially true under Trump. He imposed a ceasefire on Gaza that let Hamas survive to fight another day; they still haven’t disarmed.”
The duration of the war will depend, in part, on Iran’s ability to resist and defend its remaining capabilities — but also on the president’s willingness to accept an outcome that leaves the Islamic Republic in place.
That decision has not yet been made by Trump, who has vacillated between calls for a democratic uprising across Iran — and U.S. military options to support resistance groups inside the country — as opposed to a shorter campaign that cripples Iran’s political leadership and Islamic Revolutionary Guard Corps.
“I can go long and take over the whole thing, or end it in two or three days and tell the Iranians, ‘See you again in a few years if you start rebuilding,’” Trump told Axios.
One of Israel’s primary goals is to effectively eliminate the country’s ballistic missile program, and progress on that score is ahead of schedule, another source familiar with the operation said. “Things are going very well at the moment,” the source added. “Great pace.”
An Israeli military source noted to The Times that the stated goal of the mission is to significantly degrade, but not necessarily destroy, Iran’s ballistic missile capabilities, a goal the source said could be accomplished within Trump’s preferred time frame.
“Israel was quite unhappy Trump ordered the [June 2025] 12-day war ended when it did,” said Patrick Clawson, director of the Iran program at the Washington Institute for Near East Policy. He said he expected the current war would “take time” to comprehensively set back Iran’s ballistic missile capabilities, after a series of Israeli missions in 2024 against the missile program failed to set them back by more than a matter of months.
“Some Israelis think before the recent strikes, Iranian production was fully restored,” Clawson said. “So a really comprehensive attack on Iranian missiles is an important Israeli objective.”
The Maduro model
But no one inside the Islamic Republic system has emerged so far to serve in a supplicant role to Trump in the way that Delcy Rodríguez has stepped in as acting president of Venezuela, after U.S. forces captured that country’s strongman president, Nicolás Maduro, in an audacious overnight raid in January.
Since then, the Stars and Stripes have flown alongside the Venezuelan tricolor at government buildings in Caracas, where senior Trump administration officials have been welcomed to discuss lucrative opportunities in Venezuela’s oil industry.
Trump is now looking for an Iranian counterpart to Rodríguez, he said Tuesday, suggesting he is willing to keep the Islamic Republic in place despite encouraging its citizens to rise up against their government.
“Most of the people we had in mind are dead,” Trump said in the Oval Office. “We had some in mind from that group that is dead. And now we have another group. They may be dead also…. Pretty soon we’re not gonna know anybody.”
“I mean, Venezuela was so incredible because we did the attack and we kept the government totally intact,” he added.
Dennis Ross, a veteran diplomat on the Israeli-Palestinian conflict who served in the George H.W. Bush, Clinton and Obama administrations, expressed doubt that Trump would be willing to proceed with a months-long campaign, regardless of Israel’s aspirational objectives.
“I believe President Trump doesn’t define clear objectives so he can decide to end the war at a time of his choosing, and declare the objective at that point, announcing we have achieved what we sought to do,” said Ross, noting that finding a figurehead in Iran as he did in Venezuela was always “a long shot.”
“Unilaterally, he could declare we made the regime pay a price for killing its citizens, and we have weakened Iran to the point that it is not any longer a threat to its neighbors,” Ross added. “He could then say, if Iran continues the war, we will hit them even harder.”
Politics
Fraud-plagued Minnesota sues Trump admin for withholding $243M in Medicaid payments
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Minnesota filed a federal lawsuit Monday against the Trump administration, accusing federal health officials of illegally withholding $243 million in Medicaid payments from the state.
Attorney General Keith Ellison and the Minnesota Department of Human Services sued the Centers for Medicare and Medicaid Services (CMS) and the U.S. Department of Health and Human Services (HHS), arguing the funding freeze violates federal law.
The state is seeking a temporary restraining order to immediately block the action.
The dispute stems from a January notice in which the Trump administration said it would withhold more than $2 billion annually from Minnesota’s Medicaid program over what it described as “noncompliance” with federal regulations, specifically, alleged failures to “adequately identify, prevent, and address fraud in its Medicaid program.”
Minnesota Attorney General Keith Ellison speaks during a Senate Homeland Security Committee hearing on Capitol Hill. (Tom Brenner/AP)
State officials say they have not been told specifically how Minnesota is out of compliance or what changes the administration wants to see.
The lawsuit follows a Feb. 25 announcement from CMS that it was deferring roughly $260 million in quarterly federal Medicaid funding to Minnesota, including about $243 million tied to “unsupported or potentially fraudulent” claims.
CMS said the deferral is part of a broader fraud crackdown and cited unusually high spending and rapid growth in personal care services, home- and community-based services, and other practitioner services.
HEAVILY-REDACTED AUDIT FINDS MINNESOTA MEDICAID HAD WIDESPREAD VULNERABILITIES
Vice President JD Vance looks on as Medicare and Medicaid Administrator Mehmet Oz speaks about combating fraud at the White House complex in Washington, D.C., on Feb. 25, 2026. (Oliver Contreras/AFP via Getty Images)
“For decades, Medicare fraud has drained billions from American taxpayers — that ends now,” HHS Secretary Robert F. Kennedy Jr. said in a statement. “We are replacing the old ‘pay and chase’ model with a real-time ‘detect and deploy’ strategy, using advanced AI tools to identify fraud instantly and stop improper payments before they go out the door.”
Minnesota officials contend the move improperly uses a funding “deferral” mechanism and amounts to denying the state due process before any formal finding of noncompliance.
WALZ SLAMS TRUMP ADMIN FOR TEMPORARILY HALTING MEDICAID FUNDING TO MINNESOTA: ‘CAMPAIGN OF RETRIBUTION’
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The threatened cuts represent about 7% of Minnesota’s quarterly Medicaid funding and could force reductions in health care services for low-income residents, according to Ellison’s office.
“Trump’s M.O. is to cut first, no matter what the law says or who gets hurt, and ask questions later, if at all,” the attorney general said. “These cuts are the latest in a long series of efforts to go around the law to punish Minnesotans — but just as we fought back and won when they illegally tried to cut funding for childcare, hungry families, and our schools, we are suing them again today to make them follow the law.”
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