Trump picks Wall Street lawyer Clayton to lead US intelligence after Pulte backlash puts spying powers at risk

A rocky transition

Tulsi Gabbard, the director of national intelligence, will now leave on 19 June, earlier than the original 30 June date, reportedly under pressure from Bill Pulte, the man Trump first wanted as her acting successor. Trump had already asked Pulte to slash the ODNI staff.

“I asked him to immediately undertake the necessary reduction in the size of the office, sending officials back to their home agencies.”

But the choice of Pulte, a real estate magnate who heads the Federal Housing Finance Agency and has accused Trump’s opponents of mortgage fraud, provoked bipartisan fury. On Thursday the House voted down a reauthorisation of warrantless foreign surveillance, with 19 Republicans joining Democrats, leaving the power to expire in the night from Friday to Saturday. The House is now on a week-long recess, so the law cannot be extended before it lapses.

Clayton tapped as permanent pick

Trump turned late Thursday to Jay Clayton, 59, the U.S. attorney for the Southern District of New York and a former chairman of the Securities and Exchange Commission. In his Truth Social post, Trump called Clayton “highly respected,” a “great talent,” and said

“no one possesses better credentials”

for the post, urging the Senate to confirm him quickly. The Senate intelligence committee has scheduled a hearing for 17 June, but it is unlikely the full Senate will vote before Gabbard’s 19 June departure.

Who is Jay Clayton?

Clayton spent the past 14 months as Manhattan’s federal prosecutor, handling cases with a national-security edge: the drug conspiracy prosecution of former Venezuelan president Nicolás Maduro, charges against an Iran-backed militia commander for plotting attacks on Jewish targets in the U.S. and Europe, and the trial of three brothers for sex trafficking. He previously led the SEC during Trump’s first term, bringing early crypto enforcement actions and a case against Elon Musk over Musk’s use of Twitter. He has never served in the military or intelligence community.

Spying law fallout

The lapsed authority allows U.S. spy agencies to intercept digital communications of foreigners abroad without a warrant. The White House calls it vital for counter-terrorism, but the House — angry over the Pulte nomination — refused to re-authorise it. “The House gave Trump a disciplinary slap,” N-tv wrote, and the law’s expiration is now unavoidable. Though Clayton’s nomination may unlock a fresh vote, the House recess and the tight timeline mean the gap in the powers will already have occurred.

What comes next

If the Senate does not confirm Clayton by 19 June, Pulte could still step in as acting director. Clayton’s backers point to his experience with cross-border cases as demonstrating the judgment needed to coordinate 18 spy agencies, but Democrats and some Republicans remained wary of another nominee without direct intelligence credentials. The next week will test whether the Clayton pick can bring the Senate and the House back to the table — and whether the surveillance authority can be restored quickly once Congress returns.