Good morning from the WSJ Washington Bureau.

Trump Administration: The president is back in Washington after attending the Group of Seven Summit. Secretary of State Mike Pompeo speaks at the American Legion's national convention in Indianapolis. 

Housing Overhaul: The Trump administration is close to releasing a plan for revamping Fannie Mae and Freddie Mac. Here's what to expect.

NRA: Private-jet travel for Wayne LaPierre’s relatives is the latest revelation of questionable spending by the NRA chief.

Mr. Trump struck a more conciliatory note on the final day of the G-7 summit, seeking to dial down trade tensions with China and saying he was open to meeting with Iran’s president, report Rebecca Ballhaus and Noemie Bisserbe. France has been pushing the U.S. to allow Iran to receive loans, backed by Iranian oil, as a confidence-building measure for talks. A meeting between the U.S. and Iran would be unprecedented since the 1979 Iranian revolution and would face opposition in Tehran and Washington.

• Iran's President Hassan Rouhani rejected the possibility of meeting with President Trump as long as the U.S. sanctioned his country.
• The U.S. hosts the G-7 summit next year, and Mr. Trump is eyeing the Trump National Doral golf resort in Florida as the venue.

Mr. Trump and U.K. Prime Minister Boris Johnson want to quickly strike a free-trade pact after Britain leaves the European Union. Resistance is already rising on both sides of the Atlantic, report Emre Peker and Jason Douglas. An agreement would help Washington advance its trade agenda while talks with the EU and China are stuck and Congress holds up Mr. Trump’s renegotiated pact with Canada and Mexico.

The U.S.-Mexico-Canada trade pact, Mr. Trump’s renegotiated version of Nafta, has taken on heightened significance in Texas, reports Natalie Andrews. Trade policy is often not a top issue for voters but the state of the economy usually is, and in Texas, the two go hand-in-hand. Democratic Rep. Colin Allred is pushing for a House vote on the trade deal.

The Trump administration is preparing to initiate direct talks with Iran-backed Houthi forces in Yemen, report Dion Nissenbaum and Warren P. Strobel, in an effort to end the four-year-old civil war. The U.S. is looking to prod Saudi Arabia into taking part in secret talks with Houthi leaders, as fears of a broader regional war are growing.

• Iraq is working to cut its dependence on Iranian energy, Under pressure from the U.S. It has boosted its own power generation and fast-tracked agreements that will enable it to import electricity from elsewhere.

Detention of Americans is just a small part of a crackdown by Egyptian President Abdel Fattah Al Sisi's government, writes Jerry Seib. Despite Mr. Trump's warm greeting to Mr. Sisi  at the G-7 summit, his administration has shown that it has some power to bend Mr. Sisi's regime.

• In its human-rights report on Egypt, the State Department refers to “arbitrary killings by the government or its agents and terrorist groups; forced disappearances; torture; arbitrary detention," among other ills.

Challenges are emerging to a possible accord between U.S. and Taliban negotiators to start withdrawing American troops from Afghanistan. They could could upend the Trump administration’s efforts to extricate the U.S. military from the 18-year conflict, reports Craig Nelson.

Israel’s efforts to counter Iran reflect a high-wire act for Prime Minister Netanyahu, who risks saddling Israel with multiple conflicts just weeks ahead of elections, reports Felicia Schwartz. The U.S. believes that Israel has faced an increased threat from Iran in recent months.

At the G-7 summit, French President Emmanuel Macron said he hoped President Trump and Iranian President Hassan Rouhani could meet within weeks. Here's what could stand in the way: 

A run-off election today deciding the Republican gubernatorial nominee in Mississippi will be a gauge of the popularity of steep fiscal constraints in the GOP.

After no candidate won more than 50% of the vote in an Aug. 6 primary, Republicans Tate Reeves and Bill Waller will face off to determine who will run against Democrat Jim Hood in November. Mr. Reeves, currently the state’s lieutenant governor, won 48.9% of the vote back in August, while Mr. Waller, a former state Supreme Court justice, tallied 33.3% of the vote. A third candidate, Robert Foster, who has since endorsed Mr. Waller, posted 17.8%.

Messrs. Reeves and Waller differ on two issues that have defined the primary race—and could define the general election. Mr. Reeves, who boasts a large campaign chest and has been endorsed by current Gov. Phil Bryant, opposes raising the state’s tax on gasoline to pay for infrastructure improvements and expanding Medicaid in the state. Mr. Waller supports both raising the gas tax and expanding Medicaid.

One of the poorest states in the U.S., Mississippi’s infrastructure has reached a breaking point. The state was forced to close more than 100 bridges last year after federal inspectors deemed them unsafe. Supporters of Medicaid expansion in Mississippi also say that rural hospitals could close without new funding. Mr. Reeves has warned about the expense of expanding Medicaid and the burden of raising the gas tax on Mississippians.

A victory for Mr. Waller over Mr. Reeves—or even a close loss—would be a bearish signal about the political prospects of the budget-cutting, tax-slashing philosophy that was once dogma in the GOP.

Previous efforts in Republican-controlled states to minimize state taxes and spending carried political risks: In Kansas, former GOP Gov. Sam Brownback’s signature tax cuts, designed to spur economic growth, became deeply unpopular after they resulted in steep reductions to education funding. While Mr. Brownback took a post in the Trump administration, Republicans lost control of the governor’s mansion when Democrat Laura Kelly won in November 2018.

There is reason to believe the general election this fall will be competitive in deeply conservative Mississippi. Mr. Hood, currently the state’s attorney general, has won statewide in Mississippi four times, and a 2018 Senate race had Sen. Cindy Hyde-Smith (R., Miss.) beating Democrat Mike Espy by seven percentage points.

Write to Andrew Duehren at andrew.duehren@wsj.com

The House Judiciary Committee announced that it has subpoenaed former White House staff secretary Rob Porter as part of its investigation into whether President Trump obstructed justice special counsel Robert Mueller ’s investigation, reports Andrew Restuccia.

Rep. Sean Duffy (R., Wis.) is resigning from Congress next month, the five-term congressman announced Monday. He said he had recently learned that his ninth child, who is due in late October, will have some health problems that will require more care, Natalie Andrews reports.

The Justice Department has moved toward expanding marijuana research, more than three years after officials began accepting requests to grow the drug for a federally approved study, reports Sadie Gurman. The move came after one of the would-be researchers sued the DEA.

• Sen. Tom Cotton defends the idea of trying to buy Greenland from Denmark, saying that it would be a strategic asset and that he raised the idea with the Danish ambassador. (New York Times)
• If next year's G-7 summit is held at a property President Trump owns in Florida, the other world leaders will find they are little more than "paying customers" of the president at an election-year gathering unlikely to produce anything meaningful. (The Guardian)
• Millennials, who never recovered from the financial crisis of 2007-2009, will be hurt most if there is another recession. (The Atlantic)

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