IRAN: NYP-Trump Rebuffs Reports Israel Warned Of New Iranian Assassination Plot

US President Donald Trump has requested that Congress legislate a short-term extension to Section 702 of the Foreign Intelligence Surveillance Act, a foreign spy authority that will lapse on Friday without Congressional reauthorisation. 

• In a concession to Democrats, who blocked reauthorisation in protest of Trump nominating Federal Housing Director Bill Pulte as acting Director of the Office of National Intelligence, Trump wrote on Truth Social that he would seek an experienced nominee to serve as permanent at ODNI.
• Trump wrote, following a meeting with House Speaker Mike Johnson (R-LA), "I have named William Pulte to be Acting Director of National Intelligence, who will take over on June 19th, and have asked him to execute the immediate and needed downsizing of the office, reverting staff to their home agencies. At the same time, I am looking for a permanent ODNI Nominee with experience in National Security."
• "FISA 702 is very important to our Military, and keeping the American People safe, especially during the World Cup and America250 Celebrations. If nothing is done, this important Law will expire this week. I am asking Congress to send me a short-term extension of FISA to provide time for the selection and confirmation of a permanent Head of the Agency."
• Speaker Johnson is likely to bring a short-term extension to the floor today or tomorrow. Although there is bipartisan support for the measure, it is unclear if Democrats will accept the compromise, as the message suggests that Pulte will remain in place to oversee cuts to agency. 

• US TSY 17W AUCTION: NON-COMP BIDS $500 MLN FROM $69.000 BLN TOTAL

The House Appropriations Committee has released the text of the lower chamber’s USD$1.07 trillion FY2027 spending bill for the Department of Defense. The bill will be considered in the subcommittee tomorrow at 09:00 ET 14:00 BST, during a closed markup.

• The topline spending number is significantly lower than the USD$1.5 trillion requested by the Trump administration in April, which included major new investments in missile defence systems, “drone dominance, and space superiority."
• Acting Pentagon Comptroller, Jules W. Hurst III, said in April, "The FY27 defense budget will be the largest investment in military capabilities in over a generation. This budget allocates over $750 billion ... just in capability development and procuring weapons systems."
• When releasing the budget request, the White House envisaged Congressional Republicans legislating at least USD$350 billion via budget reconciliation, the special parliamentary process that skirts the Senate filibuster. Theoretically, that would have allowed the GOP to hike defence spending without the need for Democratic votes.
• In light of troubles passing the immigration enforcement reconciliation bill, that strategy appears to have collapsed, leaving the Trump administration with a major shortfall in defence spending toplines. Indeed, senior Republican appropriators said yesterday that a third reconciliation bill is unlikely. See: US: Senators McConnell And Collins Appear To Rule Out Reconcilliation 3.0
• Punchbowl noted this morning, “With defense spending in shambles, prospects are growing more and more likely for a continuing resolution that would lock in base DOD funding levels at $890 billion…”