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'Shadow government'? Billionaire Elon Musk's grip on U.S. government spending raises questions

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'Shadow government'? Billionaire Elon Musk's grip on U.S. government spending raises questions

The world’s richest man, acting as an unelected “efficiency” consultant to President Trump, has in recent days managed the rare feat of overshadowing his boss — presuming to storm into and begin closing out government agencies at will.

After two weeks of chaos caused by Trump’s own unilateral executive orders to radically alter the federal government, it was suddenly Elon Musk whose name was everywhere in Washington this week, as he and his deputies in the new Department of Government Efficiency slashed at the federal bureaucracy in a purported effort to cut costs.

Disregarding established security protocols while downplaying the budgetary authority of Congress, they accessed sensitive Treasury Department systems full of Americans’ most personal data and declared that the U.S. Agency for International Development — the agency long in charge of distributing American foreign aid to places such as Gaza, Ukraine and sub-Saharan Africa — was corrupt and being shuttered.

They suggested anyone who stood in their way, including career civil servants with actual authority to safeguard Treasury and USAID data, were the real rogue agents. And they and their allies dismissed rising outrage among Democrats as the whining resistance of political sore losers.

In one instance, Rep. Jamie Raskin (D-Md.), the ranking Democrat on the House Judiciary Committee, tore into Musk for overreaching, saying “we don’t have a fourth branch of government called Elon Musk.”

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“Elon Musk, you didn’t create USAID. The United States Congress did for the American people,” Raskin said. “And just like Elon Musk did not create USAID, he doesn’t have the power to destroy it.”

Stephen Miller, Trump’s deputy chief of staff for policy and homeland security, shot back on the social media platform X, which Musk owns.

“Democrat politicians hate democracy,” Miller wrote. “They don’t believe voters have the right to elect a president to drain the permanent unelected DC swamp.”

The showdown continued a roiling debate over U.S. governance that defined the 2024 race between Trump and former Vice President Kamala Harris and has continued to shape Trump’s presidency in its first days.

The battle is between legacy government and the legal checks and balances that have held it together for generations, a system Democrats are vociferously trying to defend — including in court — and Trump’s new order, aimed at tearing down the status quo with the fast-paced, slash-and-burn tactics of venture capital and big tech, where breaking things in the name of innovation is celebrated.

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Trump and his supporters believe they have a sweeping new mandate to drive change, thanks to a slim win for Trump and tiny majorities for Republicans in the House and Senate, powered in part by nearly $300 million in campaign contributions from Musk. They say Trump chose Musk to ferret out fraud and waste, and that Musk as a result has all the authority he needs to proceed unimpeded.

Trump, never one to appreciate being upstaged, has so far remained unmoved by the growing alarm over Musk usurping undue power — though those concerns have clearly reached him. In recent remarks, Trump has said he approves of Musk’s work so far, but also that he remains in charge as president and won’t always agree with the tech billionaire’s playbook.

“Sometimes we won’t agree with it, and we’ll not go where he wants to go,” Trump said. “But I think he’s doing a great job. He’s a smart guy.”

Trump said he won’t allow Musk to work in areas where he has a conflict, but hasn’t seen anything of concern yet.

In addition to being the primary owner of X, Musk is the chief executive of SpaceX and Tesla. The companies hold dozens of contracts with the federal government worth billions of dollars.

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Democrats say it is impossible to untangle Musk from his conflicts, particularly if he is given sweeping spending authority across all of federal government. They say no president has the legal right to disregard budget decisions by Congress or the basic structure of government as outlined in the Constitution and other law — much less an unelected and clearly conflicted subordinate who has not been confirmed to any real government position by the Senate.

And they warned that a system that hands government control over to rich campaign donors is not a democracy at all, but an oligarchy.

“Before our very eyes, an unelected, shadow government is conducting a hostile takeover of the federal government,” Senate Minority Leader Charles E. Schumer (D-N.Y.) said during a news conference Monday.

Schumer said DOGE employees doing Musk’s bidding had on Friday “forcefully gained access” to the Treasury Department’s payment system and “the most sensitive information of virtually every U.S. citizen,” including Social Security data, tax information and Medicare and Medicaid benefit data.

Schumer took a similar message to X, attacking DOGE there as a made-up entity with zero legitimate power.

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“DOGE has no authority to make spending decisions. DOGE has no authority to shut programs down or to ignore federal law,” Schumer wrote. “DOGE’s conduct cannot be allowed to stand. Congress must take action to restore the rule of law.”

Musk, reportedly operating as a “special government employee” with limited responsibilities, called Schumer’s response “hysterical” and proof that DOGE “is doing work that really matters.”

“This is the one shot the American people have to defeat BUREAUcracy, rule of the bureaucrats, and restore DEMOcracy, rule of the people,” Musk wrote on X. “We’re never going to get another chance like this. It’s now or never. Your support is crucial to the success of the revolution of the people.”

Elon Musk reacts as Donald Trump speaks at a Jan. 19 rally in Washington.

(Alex Brandon / Associated Press)

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How the American people feel about Musk’s latest actions is not entirely clear. But polling in recent months has showed Americans are skeptical of his role in government, and of him personally.

A Quinnipiac poll conducted toward the end of Trump’s first week in office found that 53% of registered voters disapproved of Musk playing a prominent role in the administration, compared to 39% who approved.

An AP-NORC poll conducted early last month, before Trump took office, found that two-thirds of U.S. adults said corruption and inefficiency were “major problems” in the federal government, and about 6 in 10 said the same about government regulations and bureaucracy. However, only a third of respondents had a favorable view of Musk, and about 6 in 10 said the president relying on billionaires for advice on government policy would be a “very” or “somewhat” bad thing.

Late Monday, several unions representing federal employees sued the Treasury Department for sharing what they said was “confidential data” with Musk’s team — alleging new Treasury Secretary Scott Bessent had abdicated his responsibility to protect the data by granting Musk access and by taking “punitive measures” against Treasury employees who had tried to block it.

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“People who must share information with the federal government should not be forced to share information with Elon Musk or his ‘DOGE,’” the lawsuit read. “And federal law says they do not have to.”

Street protests have also erupted over Musk’s moves, with one titled “Nobody elected Elon” scheduled Tuesday.

Bessent had reportedly spent part of Monday behind closed doors with Republican lawmakers, reassuring them that Musk’s team did not have control over a Treasury system that controls trillions of dollars in federal funding.

Katie Miller, a DOGE spokesperson, has also disputed claims that DOGE representatives accessed classified information without the proper security clearances. She and other Trump officials have backed DOGE’s work in part by alleging that both the Treasury and USAID ran afoul of Trump’s “America First” agenda.

Katie Miller’s husband, Stephen Miller, offered a particularly stunning assessment of USAID, an agency established by President Kennedy in 1961 and enshrined in law to distribute billions of dollars in foreign assistance.

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“Bureaucrats at USAID cannot interfere in the affairs of foreign countries to prop up regimes, to thwart America’s interests, to facilitate mass illegal immigration, nor to facilitate diversity, equity and inclusion policies, which violate federal civil rights law,” Stephen Miller said on Fox News.

Musk has said USAID is “an arm of the radical-left globalists” and responsible for “insane spending.” To Trump’s decision to put Secretary of State Marco Rubio in charge of USAID amid a review of spending, Musk replied: “Cool.”

USAID’s budget, while massive in terms of overseas spending power, amounts to less than 1% of the current federal budget. And its programs have been lauded on a bipartisan basis for years for providing a vital lifeline to people around the world, including for HIV medications and other healthcare aimed at stemming infectious diseases.

Dr. Atul Gawande, USAID’s head of global health under the Biden administration, has called Musk’s claims about the agency a “willful distortion,” and said the “impending shutdown of USAID is unconstitutional and reveals complete ignorance or indifference to how vital its work — in global health, conflicts, disasters and beyond — is to Americans and humanity.”

Democrats have also strongly defended USAID.

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Sen. Chris Murphy (D-Conn.) said on CNN that USAID supports an array of international initiatives, not just in support of vulnerable populations but American foreign policy priorities — from “countering Chinese influence inside Africa” to “fighting back against Hezbollah in Lebanon.”

International aid organizations sounded alarm over potential disruptions to humanitarian aid in Gaza, which has been decimated by Israel in its ongoing war against Hamas, while others worried over cuts to Ukraine, which is fighting off a Russian invasion.

Sen. Brian Schatz (D-Hawaii) said Musk and his team’s foray into federal agencies was “an illegal act” that the Trump administration was trying to justify through sheer brazenness.

“They are depending on some sort of sense of swagger and inevitability to storm into buildings, and take over the servers, and to run the databases, and to relieve people of their duties,” he said, “like this is some hostile takeover of a tech company.”

Sen. Elizabeth Warren (D-Mass.) said Americans should be extremely concerned about Musk gaining access to government data without any legitimate authority or clear limits on how the information may be used.

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“Whether it’s to boost his finances or expand his political power,” she said, “it is all up to Elon.”

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Trump administration clears path for controversial Mojave Desert water pipeline

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Trump administration clears path for controversial Mojave Desert water pipeline

The Trump administration has signed off on a company’s plan to convert an oil and gas pipeline to pump groundwater from the Mojave Desert to thirsty California cities for the first time, a lucrative venture that critics say threatens natural springs and wildlife.

The federal Bureau of Land Management released documents Thursday saying that Cadiz Inc.’s plan to repurpose 162 miles of the pipeline to transport water “will not significantly affect” the environment.

“We’re excited to achieve this pivotal milestone. After many years of planning and environmental review, the project has now reached the construction stage,” said Susan Kennedy, chair and chief executive of Cadiz.

Environmental advocates and leaders of Native tribes, who have been fighting the project, criticized the decision.

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“This groundwater mining proposal would drain the desert and rob the Mojave of its rare springs and wildlife habitat,” said Chance Wilcox, California desert associate director of the National Parks Conservation Assn. “It’s indefensible that the Trump administration would once again try to revive the pointless Cadiz project, by defying decades of scientific warnings and refusing to conduct an environmental review of the groundwater mining.”

The application for the federal authorization was filed by the Fenner Gap Mutual Water Co. The documents say the company plans to build seven pump stations, three of them located on federal land managed by the agency.

The 30-inch steel pipeline runs underground from Cadiz’s desert property, near the town of Amboy, northward to the town of Mojave.

The BLM said in its authorization that repurposing the pipeline for water “would comply with all applicable statutes and regulations.” The agency said it has “reasonably determined that the impacts of groundwater withdrawal associated with Cadiz’s groundwater extraction project are outside the scope of analysis.”

Cadiz’s attempts to export water from its property 200 miles east of Los Angeles have drawn controversy for decades.

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In 2019, Gov. Gavin Newsom signed legislation that requires the project to undergo scientific study and gain approval from the State Lands Commission before it can take water from the Mojave and sell it to California cities.

Activists opposing the company’s plans include civil rights leader Dolores Huerta.

“Cadiz spells destruction for water, sacred lands, and the desert economy,” Huerta said in a statement. “It is exactly this type of greed and injustice that I have dedicated my life to oppose.”

Leaders of nearby tribes have also objected to Cadiz’s plans to pump from the desert aquifer near the Mojave Trails National Monument and Mojave National Preserve.

“It is the living heart of the desert,” said Daniel Leivas, chairman of the Chemehuevi Indian Tribe. “To drain it would be to drain the life out of the entire desert. No profit is worth such desecration.”

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Chairman Timothy Williams of the Fort Mojave Indian Tribe said the company’s plan “to pump and sell 25 times more groundwater each year than the aquifer can replenish would desecrate our traditional territories.”

“Pumping more groundwater than is sustainably replenished is not only negligent, but dangerous to the American Desert Southwest,” he said in the joint statement with other opponents of the project.

For years, while pursuing its plan to sell water far away, the company has been using wells on its property to irrigate nearly 2,000 acres of farmland growing lemons, grapes and other crops. It has drilled more wells in anticipation of being able to export water once the government approved its pipeline.

The company intends to pipe water to communities in San Bernardino County and says it’s “expected to provide one of the lowest-cost sources of new water in the drought-plagued Southwest.” It says the federal permit “marks a key milestone as we finalize project financing with prospective investors.”

Cadiz bought the 220-mile pipeline from El Paso Natural Gas in 2020. Once construction is completed, the company says the pipeline will be able to transport up to 25,000 acre-feet of water per year — about 5% of what Los Angeles uses each year.

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The Los Angeles-based corporation is also seeking to build a new pipeline along a railroad right-of-way to transport water to the south.

Environmental groups have repeatedly filed lawsuits challenging the project.

Ileene Anderson, a senior scientist at the Center for Biological Diversity, called the Trump administration’s decision “a green light for environmental destruction.”

She said six of the proposed pumping stations slated to be built are in the habitat of desert tortoises, a species in decline.

“We’ve successfully fended off this project before and we’ll continue to fight to stop this zombie from coming back,” Anderson said.

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In 2021, the Biden administration reversed a Trump administration decision that had cleared the way for Cadiz to pipe water across public land. In 2022, a federal judge scrapped the pipeline permit that the Trump administration had issued.

But during President Trump’s second term, the company has again made headway on its plans. In February, Cadiz announced that the federal Environmental Protection Agency had invited it to submit an application for a $194-million low-interest loan for the northern pipeline project.

The company said in May that it reached an agreement with the federal Bureau of Reclamation to provide funding for a review of its potential role in “augmenting water supplies” along the shrinking Colorado River.

The company has also been lobbying the Trump administration. The group Public Citizen said in a recent report that Cadiz, through its nonprofit Fenner Gap Mutual Water Co., enlisted former Interior Secretary David Bernhardt’s new lobbying firm, the Bernhardt Group, and has spent at least $330,000 on lobbying in 2025 and 2026.

Records show lobbyist Luke Johnson has repeatedly accompanied Kennedy at meetings with Interior Department officials.

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“The extensive influence of David Bernhardt’s boutique lobbying firm on the agency he formerly led highlights how insider firms staffed with former Trump officials have grown in recent years,” said Alan Zibel, a research director with Public Citizen. He said Bernhardt and his lobbyists “have learned how to master influence-peddling in the anything-goes era of Trump 2.0.”

Earlier this month, an Arizona water agency announced it signed an initial “memorandum of understanding” agreement to buy up to 10,000 acre-feet of water per year from Cadiz’s Mojave Groundwater Bank. The Central Arizona Irrigation and Drainage District provides water to farmlands in Pinal County, where growers are dealing with water cutbacks.

The company said that for this to happen, it would need to build pipelines and reach deals to exchange water across state lines.

Members of California’s congressional delegation have raised concerns. In a recent letter to Interior Secretary Doug Burgum, California Sens. Adam Schiff and Alex Padilla called for a thorough environmental review, saying that federal agencies and peer-reviewed scientific analyses have “warned of the significant and irreversible impacts that Cadiz’s project could have on federal lands and surrounding communities.”

Rep. Raul Ruiz (D-Indio) said in a letter to Burgum that he is concerned about the company’s long-standing effort to extract and export groundwater.

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“The area I represent cannot afford to absorb the long-term costs of a commercially driven groundwater export scheme,” Ruiz said.

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Trump Promotes ‘Freedom Fuel’ Gas Stations as Gas Prices Rise Again

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President Trump has promoted a chain of newly rebranded gas stations across the Philadelphia area with lower gas prices. The New York Times has not been able to get detailed information about who is behind the stations. The Trump administration says it did not fund or subsidize the company.

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Kelley Paul: America’s Founders were the ‘first civil rights heroes’

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Kelley Paul: America’s Founders were the ‘first civil rights heroes’

NEWYou can now listen to Fox News articles!

Kelley Paul is no stranger to the American political scene. As the wife of Senator Rand Paul (R-Ky.), and the daughter-in-law of longtime former Congressman Ron Paul (R-Texas), she has seen her fair share of the campaign trail, emerging as a powerful surrogate during her husband’s 2016 presidential run.

She is also an accomplished writer, speaker, and public relations professional. As America ushers in its 250th anniversary, Paul saw the perfect opportunity to branch out into the world of children’s literature. Recently she sat down with Fox News Digital in Las Vegas at Freedom Fest to discuss her new book, “Good Night, Young American.”

Kelley Paul is the wife of Sen. Rand Paul and author of two books. (Courtesy Kelley Paul)

Paul credits her family for giving her the inspiration for the new project:

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“I have to give a lot of credit to my daughter-in-law, Kate. She and our son were over for dinner last summer with our grandson, who was only six months old at the time. And Kate was like, you know, we need more patriotic books for babies. She wasn’t really happy with a lot of the book options she was seeing. And that night at dinner, we kind of played around with some ideas. And I came up with ‘Good Night Young American.’ And a year later, here it is.”

EXCLUSIVE: RAND AND KELLEY PAUL OPEN UP ABOUT 2016 RACE

“Good Night, Young American,” recommended for children ages 4–8, takes kids on a visually and thematically engaging journey through early and colonial history.

“Well, our revolutionary history is such a great adventure, right? So when I came up with the concept that my little boy would start out on the 4th of July with his parents, asking, what is it all about? I knew we’d be celebrating the 250th. Kids ask, what are we really celebrating? 

And his dad describes the Declaration of Independence to him in the signing. So I tried to think what is going to appeal to children in this great adventure of our revolution. So when he falls asleep that night, he’s in the crow’s nest of the Mayflower. He is a pilgrim, he’s a colonist, and then he makes friends with all the great revolutionary heroes that we know. So he makes friends with Sam Adams, he joins the Sons of Liberty, he meets at the Green Dragon. This is so exciting for children, right? 

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It’s visual stuff. He makes friends with Ben Franklin, and he’s flying the kite. Dramatically rides on the midnight ride with Paul Revere. He and his dog, his little dog, are with him for all the adventures. And of course, he crosses the Delaware with George Washington. And I wanted to make the signing of the Declaration of Independence and the writing of it something that was dynamic and exciting visually. So I have him swinging on the Liberty Bell when the declaration is signed.”

Paul worked closely with the illustrator, Marika Monesi, to bring the events of America’s founding to life in an engaging and visually appealing way for children.

The Liberty Bell, originally saved from the British by Lynnport farmer Frederick Leaser, sits in its Philadelphia shrine. (iStock)

“She really captured the excitement on the little boy’s face, his personality, but I worked very close with her,” Paul said. “I wanted there to be a lot of movement, a lot of dynamic images. So, for example, with the Liberty Bell, for kids, a bunch of men standing around writing a document…I wanted to bring it to life. So I said, let’s have him running up to the top of the bell tower in Philadelphia at Freedom Hall and swinging on the Liberty Bell. And she was just such a great artist. With the George Washington scenes, he’s crossing the Delaware because that, again, is so visual. I wanted drive home to children the incredible bravery and courage of our founders, how cold and miserable and hard that war was. 

“Also, I love the illustration that she did of the King of England reading the Declaration of Independence. I have to give my husband Rand a little credit there. On the first couple of drafts that she did, Rand was like, ‘He needs to be fatter. King George was famously fat!’ So it was a lot of fun. It was very collaborative.”

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KELLEY PAUL ‘EXHAUSTED AND ANGRY’ THAT THOSE WHO HARASSED HER AND HER HUSBAND FACE NO CHARGES

Part of Paul’s motivation for the book was related to the teaching of American history today, and the controversies therein:

“I do think that we’ve gotten away from really celebrating our founders and our heroes. What they were doing in 1776 was incredibly radical, if you think about it. At that time, everyone accepted the divine right of kings. Everyone accepted hereditary rule. And our founders took Enlightenment ideas from John Locke and philosophers, and they turned it into the framework for a government. The idea of self-government and that our rights come from our Creator, that we have inalienable rights that are given to us by God and not from a king. Those were radical ideas of the time.

Historians say an early draft of the Declaration of Independence offered new insight into how Thomas Jefferson refined the nation’s founding document. (Stock Montage/Stock Montage/Getty Images)

I like to say our founders were the first civil rights heroes, the first civil libertarians. And I think our education system has gotten away from that. They don’t view them in the time that they existed, and suddenly now everything is oppressor versus oppressed narrative. And they are labeled more like colonizers or enslavers, and that’s the only view that they’re looked at, and not as human beings who sacrificed their very lives to write the Declaration of Independence, to form this country…it was an incredible, bold, and courageous act, but it was also an act of moral courage and philosophical courage.”

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Ultimately, Paul hopes that her books will stimulate the natural curiosity of America’s youth to learn more about their rich history:

Participants carry the City of Cumberland’s “America 250” parade banner down Baltimore Street during the America 250 parade in downtown Cumberland, Maryland, on June 27, 2026. Spectators line both sides of the street as American and Maryland flags lead the procession. (Fox News Digital/ David Marcus)

“Well, I hope that my books, especially with America’s 250, will spark a lot of questions and that they will give a framework for parents to talk to their kids about the founding of this country. And I hope children from a very, very young age will come away with this idea that they are a part of America’s story, that they as Americans can take pride in the heroism of our revolutionary founders. That as Americans, this is all of our story. So that’s really my goal with the books.”

One of the biggest challenges Paul faced was taking big ideas that may be hard for a four or five-year-old to grasp, like the Declaration of Independence or the Constitution, and distilling them down into an accessible format for kids:

“Well, I try to use language that kids could understand, and very much use simple terms. But if you think about it, it is simple. Our rights come from God. And when he makes friends with Thomas Jefferson, he says, Thomas Jefferson has written this amazing document that says that we can all be free to live our lives the way we choose, and no government can take our rights to, you know, to life, liberty, and the pursuit of happiness away from us. 

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He also talks about James Madison and the Bill of Rights and the most important right is freedom of speech. That is that no government can tell you what to say or what not to say.”

Rand Paul, who famously puts Constitutional principles front and center in the public square, also played a key role in the book’s thematic development.

Kelley Paul and her husband Kentucky Republican Sen. Rand Paul. (Courtesy Kelley Paul)

“Rand has been incredibly supportive. I’m just so grateful and blessed to have had an amazing, now 36-year marriage to Rand Paul. And he was very involved. He would read over the drafts and gave me a lot of, like I said, good advice about things in history that he thought I should include. 

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And I’m also just very grateful to be the daughter-in-law of Ron Paul. And so, I wanted these books to be there for our little grandson who I call ‘my favorite little American’ and help him from an early age be educated in the legacy that, the Paul family has in this country.”

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