For Speaker Mike Johnson, Rep. Chuck Edwards' decision to drop his reelection bid just trades one problem for another.

Why it matters: Instead of trying to hold a vulnerable seat with a scandal-ridden candidate, Republicans now have to scramble for a replacement who'll be starting at square one three months out from Election Day against a well-funded Democrat.

• North Carolina's 11th District already was in Democrats' sights long before Edwards became the target of a House Ethics probe this spring — and things were not trending Republicans' way.
• 🔮 Sabato's Crystal Ball shifted the race from "lean Republican" to "toss-up" last Thursday, after Edwards' Democratic opponent, Jamie Ager, significantly outraised him in the second quarter.
• Then the House Ethics Committee concluded Monday that Edwards violated House rules over sexual harassment and creating a hostile work environment based on his conduct toward female staffers — and recommended his censure.

After Edwards abruptly dropped out via social media very early this morning, GOP operatives privately acknowledged the seat was in trouble — and the late shakeup has only weakened their position.

• 🚨 One North Carolina Republican told us that Edwards had already "soured" the party's chances of holding the seat.

🔎 Zoom in: National Republicans will be forced to pour money into the race, as the replacement nominee will have to quickly build a campaign from the ground up.

• 💰 Ager is already fundraising off Edwards' abrupt exit, texting supporters: "Our Republican opponent dropped out today. While we don't know yet who we'll face in November, we need to be prepared for anything. Political experts have called this race a 𝙏𝙊𝙎𝙎-𝙐𝙋 so this seat will be critical to flip the House blue."

🚗 Driving the news: "After much prayer and reflection, I've decided to withdraw from my re-election campaign. I will complete my current term," Edwards wrote in a 3:32am ET post on X.

• ⚡️ The ethics panel's findings corroborated several incidents first reported by Axios, including handwritten correspondence, personal gifts, drinking outings and casino trips, and cited them as supporting evidence for its findings.

Between the lines: Republicans are also bracing for Democrats to try to force a vote on expelling Edwards, a move that could further complicate the GOP's narrow House majority.

• Edwards is likely to be censured when the House returns from its August recess, and the vote is expected to garner broad bipartisan support.

👀 What to watch: Democrats see an opportunity to keep attention on the case as they push for tougher penalties for lawmakers found to have engaged in sexual misconduct.

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— Kate Santaliz

President Trump personally intervened last night in a dispute over delaying a ban on hemp-derived THC products, calling a key senator.

Why it matters: Pot-like products clearly matter to the White House ahead of the midterms.

☎️ Driving the news: In a wide-ranging call, Trump laid out the argument to Sen. Ted Budd (R-N.C.) for why the White House supports a provision in the stopgap funding bill that would delay the ban by about a month, according to a source familiar with the call.

• The reason given: The White House is working on a broader framework addressing THC products for medicinal uses, and officials are concerned the ban could complicate those plans.
• ❌ Budd has filed an amendment to strip out the White House-backed provision.

Zoom in: The dispute boiled over during a closed-door Senate GOP lunch today, where several Republican senators clashed with White House liaison James Braid, according to three sources familiar with the meeting.

• Sens. Tom Cotton (R-Ark.), Pete Ricketts (R-Neb.) and Budd argued forcefully for allowing the ban to take effect in November as planned.
• Concerns centered on children's easy access to hemp-derived THC products, which Cotton called "gas-station marijuana candy."

Braid, in response, committed to no further delays — beyond the one included in the short-term funding measure.

• Support for Budd's amendment has grown, and it now has nine cosponsors.

🤔 The intrigue: A delay in the ban would reportedly benefit White House Chief of Staff Susie Wiles' son-in-law, who owns a company that sells intoxicating hemp products.

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— Stef W. Kight

Senate Majority Leader John Thune is scheduled to headline a fundraiser for former Sen. John E. Sununu outside of D.C. tomorrow, according to people familiar with the plans.

👉 Why it matters: The GOP high command sees New Hampshire as one of its top pickup opportunities this cycle.

• Even if the Senate schedule prevents Thune from attending in person, the fundraiser is intended to send a clear signal to donors that they should take the New Hampshire race seriously.
• First, though, Sununu must defeat former Sen. Scott Brown, who represented neighboring Massachusetts from 2010 to 2013, in the Sept. 8 GOP primary.
• 🥊 The winner is expected to face Rep. Chris Pappas (D-N.H.) for the seat being vacated by retiring Sen. Jeanne Shaheen (D-N.H.).

The other side: Pappas has been warning that the race is closer than many national Democrats assume.

• "Don't take New Hampshire for granted," he told Punchbowl last month.
• Senate Majority PAC, the super PAC aligned with Minority Leader Chuck Schumer, has already reserved more than $10 million in New Hampshire for the cycle.

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— Hans Nichols