The GOP House Armed Service Cmte. Chair announces he's ending the probe into a Sept. 2nd boat strike. Also, Democrats probe the ties between Trump officials and immigration contractors. Plus, Federal Reserve Chair Jerome Powell blames elevated inflation on tariffs. And a federal judge orders Donald Trump to end the National Guard's control in California. Rep. Adam Smith, Rep. Jamie Raskin, Sen. Amy Klobuchar, and Jacob Soboroff join Lawrence O'Donnell.

New polls paint a bleak picture for the Trump economy. Plus, the weekly jobless claims hit their highest level in over four years. Also, Trump's redistricting push fails in Indiana. Rep. Brendan Boyle, Jared Bernstein, Charlie Sykes, Tom Nichols, State Sen. Shelli Yoder, and Rep. Maxwell Frost join Ali Velshi.