Repair Damaged Ships
Neither Steve not Nicholas have damaged Dreadnoughts or War Suns. So this step is complete.
Remove Command Counters
All Command Counters are pulled from the board and returned to supply.
Each player turns over any exhausted planets in their player area.
New Action Cards
Steve will get 1 Action Card. He has 2, so does not exceed the 7 card limit. Because of the Minister of Policy Law, Nicholas will receive 2 Action Cards. He also only has 2 Action Cards, so adding 2 more will not exceed the 7 card limit.
Action Cards are distributed in turn order. Steve will be first.
Steve draws the Local Unrest Action Card.
Continue the Status Phase.