THE LEDE: Current government funding authority expires Friday …Trump address Joint Session, (not everyone was on their best behavior)… Trump will exempt Mexican and Canadian goods covered by the North American trade agreement known as USMCA from his 25% tariffs until April 2…The Supreme Court backed a lower court’s order that the Trump administration must quickly disburse as much as $2 billion in foreign aid money owed to contractors that had been frozen…U.S. and Ukrainian officials are talking about a potential meeting this week in Saudi Arabia aimed at structuring the framework for a ceasefire with Russia and a peace agreement… The president said he wrote to Iran’s leadership urging the country to negotiate a new nuclear deal, days after it emerged that Tehran’s atomic activities have surged… Trump’s top hostage negotiator has met with Hamas officials in Qatar, the White House confirmed, a rare instance of direct contact by US officials with a group designated a terrorist organization…Chair Jerome Powell acknowledged increased uncertainty in the US economic outlook, but said central bank officials don’t need to rush to adjust policy…The Centers for Disease Control and Prevention reported 58 new US measles cases Friday, a worrying sign in an outbreak across 12 states that’s already been linked to
two deaths Trump tells DC mayor she must clean homeless encampments in the city ( and she did)… The Trump administration said it’s canceling $400 million of federal grants and contracts to Columbia University, citing civil rights complaints against the Ivy League school by Jewish students… Republican senators told Musk that he needs congressional approval for controversial spending cuts or they risk being overturned in court, you know the whole power of the purse thing…The government is considering selling a sprawling portfolio of properties across 47 states, the District of Columbia and Puerto Rico, part of Trump’s campaign to shrink the federal workforce — and the buildings it occupies…The head of an independent whistleblower agency is ending his legal fight over Trump’s decision to fire him after a federal appeals court in Washington allowed the removal to take effect…The Supreme Court signaled it’s likely to toss out a Mexican government lawsuit that accuses gunmakers of helping to funnel firearms to the country’s violent drug cartels… Trump said he was negotiating with four different possible buyers for TikTok’s US business and that a deal for the social video app could come “soon.”… RIP Congressman, and former Houston Mayor, Sylvester Turner…
THE WEEK AHEAD: Start the Shut Down Watch clocks… Labor secretary pick Lori Chavez-DeRemer gets a vote on final confirmation Monday… CDC nominee Dave Weldon testifies at a Senate Health, Education, Labor and Pensions Committee hearing Thursday…Republican FTC nominee Mark Meador and Office of Science and Technology Policy director nominee Michael Kratsios get votes on their nominations in the Senate Commerce Committee Wednesday…Trump’s picks to lead FDA and NIH — Jay Bhattacharya and Martin Makary — get votes on their nominations in the Senate HELP committee Thursday…Trump’s deadline for tariffs on steel and aluminum taking effect is Wednesday… House Democrats booked their annual retreat at the Lansdowne Resort in Virginia later in the week.
NUMBERS: Economic activity rose “slightly” since mid-January but businesses across the country reported uncertainty surrounding new policies from the Trump administration, particularly on tariffs, the Federal Reserve said in its Beige Book survey of regional business contacts…There were 8.9 million employed Americans holding down more than one job last month, or 5.4% of the workforce, according to government jobs data out Friday. That’s the highest proportion since 2009
APPROPRIATIONS: The federal government faces another shutdown deadline this Friday night, as Congress scrambles to pass a short-term funding bill. House Speaker Mike Johnson unveiled his continuing resolution (CR) Saturday, backed by the White House and set for a House vote Tuesday night. Trump has called for GOP unity, but Republican holdouts, including Thomas Massie (R-Ky.), remain. In the Senate, filibuster rules and Rand Paul’s opposition mean John Thune needs at least eight Democrats to pass the bill. Democrats are wary, as Johnson’s proposal boosts deportation, military, and veterans' funds while cutting non-defense programs.
JOINT SESSION: In a nearly 100-minute address, Trump set a record for the longest speech to a joint session of Congress, but the night was marked by tension and partisan hostility. The speech underscored the deep divisions defining his presidency. Democrats offered no applause, remaining stone-faced throughout. Many wore pink in protest and carried “Save Medicaid” paddles. Rep. Al Green (D-Texas) was removed after shouting and waving a cane. Some Democrats walked out, while others heckled Trump over Jan. 6. Yes, da ruckus was brought. Trump received raucous GOP support, even for controversial proposals like tariffs and seizing Greenland. Elon Musk, under fire for federal spending cuts, won two standing ovations. Ukraine-supporting Republicans applauded Trump’s call to end the war. Trump demanded sweeping tax cuts, including eliminating taxes on tips, overtime, and Social Security benefits. Hard-line Republicans want spending cuts to offset costs, creating a challenge for negotiations. Trump focused on transgender issues, DEI, and energy, but offered few policy specifics. While he blamed Biden for inflation, voters expect immediate economic solutions, a challenge that could define his presidency.
RECONCILIATION HOUSE v SENATE: Senate Republicans may struggle to accept spending cuts as deep as the $1.5 trillion included in the House GOP-passed budget resolution. That was Senate Majority Leader John Thune’s message to his members at a private lunch Tuesday. So Republican senators are starting to digest what they can do with the House GOP’s reconciliation plan. House Republicans’ razor-thin majority is looming over the conversation. But there are a lot of strong opinions among Senate Republicans about both whittling down the spending cuts and growing the tax portion of the reconciliation package – a formula House deficit hawks may not like. Thune said his conference is going to have to deal with “both the tax piece and the spending piece” in the House’s plan. And Thune said all the work the Senate needs to do is “not gonna happen overnight.”
TARIFFS: Republican lawmakers are increasingly alarmed that President Trump’s trade policies are hurting the economy, as business owners, farmers, and exporters report growing uncertainty. The threat of 25% tariffs on Canada and Mexico has stalled investment, especially in industries reliant on cross-border trade. Sen. Susan Collins (R-Maine) warned that tariffs could devastate her state’s largest paper mill, while Sen. Rand Paul (R-Ky.) said major industries in his state are lobbying against them. As markets tumble, GOP senators fear economic fallout could hurt their party. Some hope Trump will reconsider tariffs if approval ratings drop and economic conditions worsen.
SHEINBAUM: Mexican President Claudia Sheinbaum expressed confidence that President Trump won’t impose reciprocal tariffs on Mexican exports next month, citing long-standing trade agreements. Speaking at a massive rally in Mexico City, she framed Trump’s delay as a victory, balancing diplomacy with national sovereignty. Sheinbaum emphasized Mexico’s commitment to border security and fentanyl control, highlighting declining drug seizures. Economy Minister Marcelo Ebrard stated that 90% of Mexico’s exports could benefit from recent tariff relief. Sheinbaum reaffirmed the importance of dialogue and respect in US-Mexico relations, while her government continues negotiations with US trade officials in the coming days.
CANADA: Mark Carney won the race to succeed Justin Trudeau as Canada’s next prime minister, putting the former central banker in charge of the country just as Trump threatens its economic future. The 59-year-old ex-Goldman Sachs banker landslide victory yesterday in a vote for the Liberal leadership is a realization of a long-held ambition, and yet-another instance in which seismic global events have given him a springboard to power.
UKRAINE: The United States is pressing Ukraine to commit to a ceasefire with Russia ahead of high-level talks in Saudi Arabia this week. The Trump administration has suspended military aid and intelligence sharing to pressure President Volodymyr Zelenskiy into agreeing to a partial truce that could lead to broader negotiations. Trump has suggested lifting some sanctions on Russia and tying an economic deal on Ukraine’s natural resources to a ceasefire agreement. Zelenskiy has indicated he would consider a truce if Russia halts airstrikes and naval attacks. Meanwhile, European leaders are working on separate security guarantees for Ukraine, but Trump remains non-committal. Russia has signaled willingness to discuss a temporary ceasefire but has made no public concessions. Western officials remain skeptical of Putin’s intentions and believe his ultimate goal of controlling Ukraine remains unchanged.
LAW SUITS: Legal battles over President Trump’s executive actions are intensifying, with at least 41 rulings temporarily halting key policies. Courts have blocked the unilateral firing of civil servants, Elon Musk’s access to sensitive agency data, transgender inmate relocations, immigration raids in places of worship, and the freezing of $3 trillion in state funds. The administration has appealed, and the Supreme Court has intervened, ruling once in Trump’s favor and twice against him. In its first major decision, the Court upheld a lower court ruling restoring U.S.A.I.D. funding, marking a significant legal setback for the administration’s sweeping executive actions.
DOGE: Elon Musk's rapid push to reshape the federal government contrasts with congressional Republicans’ preference for process and decorum, fueling tensions among Trump allies. In closed-door meetings Wednesday, lawmakers urged Musk to respect Congress’s role in spending cuts and improve communication about DOGE-driven layoffs affecting their districts. Publicly, however, they largely praised him. A key concern was DOGE’s plan to cut 80,000 Veterans Affairs employees, sparking Republican alarm over potential harm to veterans’ healthcare. While Musk downplayed DOGE’s role, lawmakers pressed for a formal congressional approval process to legitimize cuts and avoid legal challenges. Some Republicans also criticized Musk’s lack of transparency, demanding more advanced notice of major policy moves.
USAID: The Supreme Court backed a lower court’s order that the Trump administration must quickly disburse as much as $2 billion in foreign aid money owed to contractors that had been frozen, Bloomberg’s Greg Stohr reports. The ruling suggests the high court may be willing to take on other legal challenges to government-wide efforts to shrink the federal workforce and significantly lower spending that are being led by billionaire Elon Musk. More than 100 lawsuits have been filed in an effort to rein in Trump and Musk.
CRYPTO: Trump formally welcomed the crypto industry to Washington Friday, convening a White House summit with industry leaders and his crypto task force. Ahead of the meeting, Trump ordered the creation of a U.S. strategic Bitcoin Reserve and a separate stockpile of forfeited digital assets. AI and crypto czar David Sacks dubbed it a “digital Fort Knox,” referencing the government’s gold vault and Bitcoin’s “digital gold” reputation. He promised an audit of U.S. holdings. Trump has also installed crypto-friendly regulators, but concerns remain about conflicts of interest. His family is involved in World Liberty Financial and recently launched meme coins. For an industry long plagued by scandals and skepticism, Friday’s summit signals growing legitimacy and the prospect of regulatory clarity.
CHIPS ACT: In his first address to Congress, Trump asked Congress to repeal the Chips Act, a $52 billion semiconductor subsidy program that passed with bipartisan support under the Biden administration. Although his call was met by applause by the Republican majority in Congress, the act has spurred projects in some GOP districts and some key backers have rejected the idea of a repeal.
FEDERAL FUNDING FREEZE: A federal judge has indefinitely blocked President Trump’s freeze on trillions in federal payments, marking another setback for the administration’s effort to claw back spending approved by Congress. Chief U.S. District Judge John McConnell ruled that the freeze, though brief, had “catastrophic consequences” for states reliant on Medicaid, child care, and infrastructure funds. The pause continues to disrupt funding nationwide. McConnell granted an injunction sought by Democratic attorneys general, rejecting the administration’s argument that the freeze would “end eventually.” He expressed skepticism that funds would resume flowing without court intervention.
FEDERAL EMPLOYEES: The Trump administration is walking back a directive ordering federal agencies to cut probationary employees after a judge last week ordered a pause to the mass terminations
WAIT…WHAT?: Scientists at a biotech company have succeeded in genetically engineering living animals to carry some traits that resemble extinct species like the woolly mammoth, the Associated Press reports.
ONE MORE: Studies have found that swearing when you injure yourself may be linked to increased pain tolerance and increased strength, though why that is remains a mystery, according to the Washington Post. We humbly ask our mothers not to threaten to wash our mouths with soap because science says the F word is healing!
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