US Justice Department drops suit over California mail-in ballot count

what happened

On Friday the Trump administration withdrew a lawsuit that sought to stop California from counting mail-in ballots cast by more than 20,000 registered voters whom federal officials believed were probably not US citizens, according to Reuters. The Justice Department filed a notice of voluntary dismissal after Democrats won comfortable victories in every statewide race in California and in most of its House districts.

Earlier, on Monday, the day before the election, the Supreme Court refused a request to temporarily halt the count of the ballots on the department's list. The government had argued it needed fast court action because those ballots could not be separated from other votes once accepted. In the dismissal notice it said the relief it sought was no longer available, since the votes had already been tallied.

US District Judge David Carter had been skeptical of the case, warning that the request might strip legitimate voters of their rights and create confusion, and calling it a major shift in election procedures while voting was underway.

why it matters

For markets this is a political and legal development with little direct effect on asset prices. It matters mainly to investors who track the stability of the US electoral system and the political climate around policy.

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