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AP

Donald Trump just said on Twitter he's replaced Chief of Staff Reince Priebus with Secretary of Homeland Security John Kelly.

The argument for Kelly, per Republican sources: He has a reputation for efficient management of complex organizations — one of the reasons he was picked as Secretary of Homeland Security. He has lots of experience leading large groups, and is a no-nonsense guy who can make the trains run on time. And he looks the part, always big with President Trump.

  • Big Change 1: The change puts Vice President Mike Pence and his team — including his new chief of staff, Nick Ayers, and longtime aide Marc Short, who heads White House legislative affairs — at the center of the managing the Capitol Hill agenda. Republican lawmakers like Pence and will be pleased by this.
  • Big Change 2: Kelly won't tolerate a disruptive environment, which has been the very definition of this West Wing. Kelly also can be expected to try to normalize many of the reporting lines that usually would go to the White House chief of staff but have been going directly to this president.
  • Big Challenge 1: Kelly will have to organize the White House around this president's unique style, rather than the more traditional structure under recent presidents.
  • Big Challenge 2: President Trump doesn't like to be told what to do, even by people he respects. Kelly will have to find a way to guide and advise this president — but understand that he won't always be heeded.

Context:

  • Trump tweeted an acknowledgement of Priebus' service to him: "I would like to thank Reince Priebus for his service and dedication to his country. We accomplished a lot together and I am proud of him!"
  • Priebus' job had been threatened ever since Anthony Scaramucci took over as WH communications director; the two do not get along. (More on that here.)
  • Many in Trump's administration hadn't come to Priebus' defense in the last two weeks since Scaramucci joined the team. A source close to the president told Axios: "We're getting to the point in the fight where a referee needs to wave his hands."
  • Mooch made it clear he was going to act as more of a chief of staff than a comms director when he threatened to fire any WH official who leaked info — which he thought Priebus had done. (It's not yet clear what role Scaramucci played in this.)
  • Earlier today, Trump praised Kelly during his MS-13 speech, seemingly foreshadowing the move. "John Kelly is one of our great stars."
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Go deeper

New York AG alleges "significant evidence" of Trump Organization fraud

Combination images of former President Trump and New York State Attorney General Letitia James. Photo: Al Drago/Bloomberg via Getty Images; Scott Heins/Getty Images

New York's attorney general filed a motion Tuesday seeking to compel former President Trump and two of his children, Donald Trump, Jr. and Ivanka Trump, to appear for sworn testimony in her office's civil investigation into the Trump Organization's financial dealings.

Why it matters: Attorney General Letitia James revealed new details in the court filing and a statement on her office's investigation into the Trump Organization's business practices, including a preliminary finding alleging the company used "fraudulent and misleading asset valuations to obtain economic benefits."

2 hours ago - Technology

Ex-N.Y. Post digital chief files lawsuit alleging sexual harassment

Richard B. Levine) (Photo by Richard Levine/Corbis via Getty Images

Former New York Post editor Michelle Gotthelf is suing her former employer, its parent company News Corp. and two editors, alleging she was reprimanded after complaining to senior executives that she was sexually harassed by retired N.Y. Post editor-in-chief Col Allan. The N.Y. Post issued a statement denying any wrongdoing.

Why it matters: "I felt that I owed it to myself and I owed it to the news organization and the people who answered to me," Gotthelf, who was a long time editor at the N.Y. Post, told Axios in an interview.

Updated 2 hours ago - Economy & Business

Airlines warn of flight cancellations amid 5G rollout concerns

Emirates SkyCargo airline Boeing 777F aircraft. Photo: Nicolas Economou/NurPhoto via Getty Images

Emirates and Delta airlines announced Tuesday that the planned rollout of 5G services at certain American airports could affect flights.

Driving the news: AT&T and Verizon announced earlier Tuesday that they would delay this week's scheduled rollout of 5G signals near a limited number of airports due to continued concerns from the aviation industry.