As President Donald Trump's second administration continued its swift recasting of the federal government and American foreign policy, the president and his top diplomat issued a stunning proposal, saying the U.S. would "take over" the Gaza Strip, "level the site" and rebuild it.

"If the principles, both moral and legal, of this magnanimous gesture of giving are not followed, then we will demand that the Panama Canal be returned to us, in full, and without

U.S. government vessels are being allowed to transit the Panama Canal without being charged fees, the U.S. Department of State announced Wednesday evening. The big picture: The move comes days after Secretary of State Marco Rubio visited Panama and warned officials there to curb Chinese influence as President Trump seeks to regain control of the Panama Canal.