| | | | |  | | By Jack Blanchard | | Presented by |  | | | With help from Eli Okun, Garrett Ross and Bethany Irvine
| | | Good Tuesday morning. This is Jack Blanchard, currently drinking tea and reading up on the Impoundment Control Act of 1974. What a life.
|  | DRIVING THE DAY | | | | 
President Donald Trump speaks to reporters aboard Air Force One en route from Miami to Joint Base Andrews, Maryland, Jan. 27, 2025, as press secretary Karoline Leavitt listens. | Mark Schiefelbein/AP | RESHAPING THE STATE: Tens of billions of dollars in federal grants and loans to organizations across America will be halted today after yet another bombshell order from the White House. A brief, two-page memo — first published last night by New York-based journo Marisa Kabas, and swiftly matched by WaPo, POLITICO, Reuters and others — revealed the next step in Donald Trump’s warp-speed overhaul of the U.S. state: an immediate freeze on all federal grants and loans to outside bodies which may not align with the president’s worldview. The memo specifies that Social Security, Medicare and “payments to individuals” will not be affected, but appears to leave all other federal pay-outs in jeopardy — including grants and loans issued to research bodies, charities, universities and community projects. And with groups getting less than 24 hours’ notice, the days ahead may be a little chaotic. Move fast and break things: The scale of the order is so broad — it cites federal spending totalling $3 trillion — that the initial reaction last night was confusion, with politicians, officials and aides all scrambling to figure out which programs and payments are in scope. The memo, issued by the acting director of the White House Office of Management and Budget, Matthew Vaeth, said all federal spending must be aligned with “Presidential priorities,” and cited Trump’s emergency orders on issues including immigration, foreign aid, DEI programs and the environment. Vaeth said all federal grants and loans which “may be implicated” must be suspended by today’s 5 p.m. cut-off while reviews are undertaken. Officials then have until Feb. 10 — that’s less than a fortnight — to prepare reports for the OMB to consider. Quick reminder: By Feb. 10, the OMB will likely be run by Trump’s incoming nominee for director, Russ Vought — one of the authors of Project 2025, and a man renowned for his determination to slash government spending. It’s not hard to see where this is going. First big question: Is this legal? It’s Congress, as every good American knows, which holds the power of the purse. “Congress approved these investments and they are not optional; they are the law,” raged Senate Minority Leader Chuck Schumer in a statement last night. And he may have a point. But but but: The WaPo write-up reckons Trump does have the power to *pause* spending, subject to review. Perhaps more significantly, Trump made very clear before the election — check out this 2023 video — that he believes impoundment laws which curb a president’s power to withhold congressional spending are “unconstitutional.” Trump notes in the video that presidents enjoyed such powers for 200 years until Congress passed the Impoundment Control Act of 1974. He now wants that law repealed, or struck out by the Supreme Court — which presumably is where this whole row is headed. Expect the legal argument to play out noisily through the day.
| | | | A message from Meta: Open source AI is available to all, not just the few.
Meta’s open source AI, Llama, is free to use – enabling startups like Zauron Labs to collaborate with universities and build an AI tool that’s like a spellchecker for radiologists.
Now, radiologists have more ways to reduce the 4% error rate in the 3 billion imaging exams done each year – potentially improving outcomes for millions of patients.
Learn more about how others are building with open source AI. | | | Next big question: How big a political risk is Trump taking? His supporters are already celebrating the imminent spending purge, but over the next few days, we’re going to discover the full range of programs, projects and initiatives whose funds have suddenly been blocked. And given the sweeping scale of the order, it seems unlikely these will all be glowingly liberal, woke-tastic DEI projects in coastal America. This order is going to affect communities the length and breadth of the country. Be careful what you wish for, Mr. President. And now — some answers! Given the memo has raised an awful lot of questions for the White House, it’s a good day indeed for new White House press secretary Karoline Leavitt to hold her first official press briefing. Tune in at 1 p.m. to see if answers are forthcoming. Let’s take a step back: Last night’s memo is just one part of a much broader White House power play, unprecedented in its breadth, to remold the entire U.S. government apparatus. A key focus has been the Department or Justice, where — as Fox News first scooped — Trump yesterday fired more than a dozen prosecutors who had worked under Special Counsel Jack Smith on the Jan.6 and classified documents cases back when the president was a mere mortal who could be held accountable for crimes committed. Prosecutors who worked on the Jan. 6 cases are also being investigated, the WSJ scooped yesterday, while several senior DOJ staff are either being reassigned or have felt compelled to quit — see stories from Reuters and the New York Times for further reading. Under siege: “It feels like a non-violent war,” one DOJ career employee tells my colleague Josh Gerstein in a must-read piece on the fear now gripping the department. “People are just in a state of shock and devastated.” A former DOJ official adds: “It is a flat-out purge of individuals who this administration must view either of suspect loyalty, or have worked on matters they just did not like. … We are in the early phases of what to me is just looking like a wholesale politically-inspired demolition of the Department of Justice in key places.” Also under siege: The U.S. Agency for International Development, where some 60 — sixty! — senior staff have just been placed on leave, my colleagues Nahal Toosi, Daniel Lippman and Robbie Gramer scooped last night. “This is a huge morale hit,” a former senior Trump administration official tells them. “This is the leadership of the agency. This is like taking out all the generals.” Acting USAID Administrator Jason Gray sent an email to all staff Monday saying the decision was related to the apparent efforts of some staffers “to circumvent the president’s executive orders.” Reminder: The U.S.’s entire foreign aid program was halted last Friday, pending review — and Nahal and Robbie have just filed a useful writeup of the chaos now erupting in projects across the developing world. Among the schemes losing funding is PEPFAR — the U.S. President's Emergency Plan for AIDS Relief — which was launched by George W. Bush and is estimated to have saved 26 million lives so far. Its data website was down last night (h/t Robbie Gramer). The WSJ also has a long list of aid projects in the mire. And there’s still more: This all follows the abrupt (and potentially illegal) sacking of more than a dozen inspectors general from key government agencies and departments — which one described to the NYT yesterday as an “existential threat” to government oversight … An overhaul of the secret service leadership (h/t CNN) … And a much broader push to make great swathes of the civil service easier to fire, under what used to be called “Schedule F” regulation. There’s also a fascinating — though unverified — anonymous Reddit post doing the rounds alleging a major shakeout of the Office of Personnel Management. Let’s be clear: What we are witnessing is nothing short of a revolution inside the U.S. government, with unknown numbers of civil servants either being removed from their jobs or effectively facing some kind of loyalty test if they wish to stay on. But let’s also be clear: Amidst the liberal outrage, it’s important to remember that this was all spelled out by Trump long in advance. Throughout the election campaign, he told America repeatedly that he would reshape the federal government, root out (and even prosecute) his enemies, pardon supporters who were convicted of violent crimes, slash government spending programs en masse and ax huge numbers of federal jobs. And then he won 77 million votes to do exactly that. Those accusing Trump of being anti-democratic might note that this is largely democracy in action.
| | | | A message from Meta:   | | | AND NOW … SOME MORE EXECUTIVE ORDERS: Onboard Air Force One last night, Trump signed a tranche of executive orders rolling back diversity in the military, banning transgender Americans from serving and reinstating personnel who refused to have the Covid-19 jab. The moves were widely expected after the New York Post got the scoop early yesterday morning … CNN has a useful writeup. And some AI positivity! Speaking on the plane to reporters (pic here), Trump did not join the chorus of unease about China’s astonishing leap forward in AI technology, as evidenced by the market-wrecking DeepSeek app. “I think it could be good,” Trump said. “If it comes in cheaper, I think it could affect us too, positively.” Some China hawk he turned out to be. Worth reading: My colleague Christine Mui has a sharp piece on what DeepSeek means for Washington. MEANWHILE IN MIAMI THE IMPOSSIBLE TASK: House GOP leaders get down to business at their policy retreat near Miami today with a truly daunting task ahead of them — somehow equating Trump’s huge spending demands with their own right wing’s insistence on deep spending cuts. As my colleague Meredith Lee Hill reports from the Doral resort, Trump turned up yesterday with a long list of demands for the upcoming reconciliation bill, but few answers about how Speaker Mike Johnson is actually meant to get it through Congress. A president’s wishlist: “Trump outlined a series of expensive immigration policy moves,” she writes, “including a ‘massive increase’ in detention beds, additional support for ICE as agents ramp up deportations, ‘full’ border security funding and completion of the wall at the southern border. On tax policy, Trump … reiterated his campaign promises to not only extend the 2017 tax cuts but also eliminate income taxes on tips, Social Security benefits and overtime earnings. What he did not detail was just how congressional leaders should go about getting all of these policies passed.” Reminder: Johnson wants a “blueprint” for a reconciliation bill hammered out at this retreat, which finishes midday tomorrow. Those on the right of his conference are demanding deep spending cuts, but more moderate members are fearful of cutting programs their voters rely on. Trump’s demands for vastly expensive tax cuts and immigration funding will only make it harder to balance the books — but given the finely poised numbers in the House, pretty much every single member needs to be on board with the plan. On the other hand: As you may have noticed. Trump does have a certain ability to instill discipline within the GOP. And as House Majority Whip Tom Emmer tells the WSJ, that’s a useful weapon to have in your arsenal when dealing with unruly members. “It’s actually exciting,” Emmer explains. “You say, ‘I mean, this is what Trump wants. Do you want me to have the president call you directly?’ — or, ‘I don’t think you want him coming into your district and telling your voters that you’re the one standing in the way of the Trump agenda?’” How today pans out: Johnson and the House leadership have a press conference scheduled for 8 a.m. … That’s followed by closed-door sessions including a “budget reconciliation outlook” session with House Majority Leader Steve Scalise. Vice President JD Vance will address the conference at lunch at 12:30 p.m. The various committees then hold closed-doors discussions this afternoon, before presenting their plans to GOP attendees tomorrow morning. Expect the proposals and counter-proposals to start leaking out over the next 48 hours. IMMIGRATION FILES KRISTI KICKS OFF: Newly confirmed DHS Secretary Kristi Noem will spell out her vision for the department in a televised address to staff at 3 p.m. today, laying the groundwork for further immigration restrictions in the days ahead. It’s Noem’s first big moment on stage in what is proving to be a major week for Team Trump’s immigration crackdown, with the president due to sign the Laken Riley Act tomorrow — the first new law of his second term. Coming attractions: Hill Republicans are already planning their follow-up. Today, Sen. Ted Cruz (R-Texas) and Rep. Stephanie Bice (R-Okla.) will introduce a bill to toughen penalties for deportees who try to enter the U.S. again, Axios’ Stef Kight scooped. Cue more agonizing for Senate Democrats in the weeks to come. By the numbers: As expected, Trump has rapidly ramped up arrests and deportations since returning to power. More than 2,400 undocumented immigrants were arrested in his first week, per the Washington Examiner, and the number of daily encounters with migrants who’ve illegally crossed the border plunged beneath 600 by Sunday, per Fox News. But Trump’s pledges to focus mainly on serious criminals is not exactly borne out by the stats. Of nearly 1,200 arrests on Sunday alone, almost half had no criminal history beyond entering the country illegally, NBC’s Gabe Gutierrez and Nicole Acevedo scooped. Colombia fallout: Trump’s weekend showdown with Colombia shocked U.S. allies — but his aggressive, unpredictable, “America First” threats and retaliation showed he can get fast results, Eli Stokols, Doug Palmer, Myah Ward and Phelim Kine report. But there may have been less than meets the eye to Trump’s big victory, Bloomberg’s Eric Martin reckons: The deportees Colombia refused to accept on U.S. military planes are ultimately arriving on Colombian planes, a key demand for President Gustavo Petro. Undeterred: Trump is clearly determined to keep leveling trade threats against countries around the world, often tied to immigration. (In desperation, some are now turning to K Street lobbyists, per NYT’s Ken Vogel.) And he’s not backing down over the use of military aircraft, either — on Monday, Guatemala accepted a U.S. military flight of deportees, Reuters’ Phil Stewart and Idrees Ali scooped.
| | | | A message from Meta:   | | | CONFIRMATION WATCH THIS WAS THE EASY PART: The Senate yesterday confirmed Scott Bessent as Treasury secretary in a 68-29 vote, with Bessent winning the support of 16 Democrats/independents, per Michael Stratford. He becomes the highest-ranking openly LGBTQ official in American history, and will play a major role in the coming tax and trade fights. And Sean Duffy is sailing to confirmation as Transportation secretary in a vote at noon today, after clearing a procedural vote 97-0 yesterday, per Chris Marquette. But now the heavier lifts: Most of Trump’s controversial nominees are still likely to win the Senate green light, but a number of them are batting back key pockets of skepticism or damaging news reports as we move into a crunch few days. Tulsi Gabbard remains the nominee in greatest danger as she prepares for her first confirmation hearing as director of National Intelligence on Thursday, with questions swirling around whether potential swing voter Susan Collins (R-Maine) might tip the finely balanced Intelligence committee’s vote against her. Gabbard can’t afford to lose a single GOP vote on the committee. She’s not the only nominee in peril. Lori Chavez-DeRemer: The Labor secretary nominee has lost the support of Sen. Rand Paul (R-Ky.) over her backing of the PRO Act, and he tells Fox News Radio’s Ryan Schmelz that as many as 15 other Republicans could follow. Sen. Ron Johnson (R-Wis.) tells NBC’s Sahil Kapur and Matt Dixon her nomination is “concerning.” But Chavez-DeRemer could benefit from Democratic backing for the unusually labor-friendly Republican. Kash Patel: An FBI whistleblower has raised a red flag, saying the nominated FBI director nominee “violated firmly entrenched protocols” when he was at the NSC by publicly sharing information about hostage releases before they were safely complete, CBS’ Daniel Klaidman reveals. Senate Judiciary Democrats raised the concern in a letter yesterday, though no Republicans joined them. FBI officials allege that his 2020 leak to the WSJ was “reckless and potentially risk[ed] tragic results.” Expect Dems to question his judgment at the Thursday hearing. But sources allied with Patel tell CBS the whistleblower account isn’t true. Robert F. Kennedy Jr.: What if the HHS secretary-designate is too liberal for the GOP? Anti-abortion groups are still worried about Kennedy’s previous support for abortion rights, but almost all of them are staying quiet to defer to Trump, Daniel Payne and Alice Miranda Ollstein report. But that’s not all: He’s said privately that he’s open to the government seizing drug patents to force costs lower, which could spook the right, Sophia Cai and Adam Cancryn report. Some key GOP senators say they still need to hear more from Kennedy: Sen. Joni Ernst (R-Iowa) on abortion and climate change, and Sen. Lisa Murkowski (R-Alaska) on vaccines, CNN’s Annie Grayer reports. Pete Hegseth: Yes, he’s already sworn in as Defense secretary. But the recriminations haven’t ended. WSJ’s Lindsay Wise revealed that last week, Sen. Thom Tillis (R-N.C.) told Danielle Hegseth, Secretary Hegseth’s former sister-in-law, that if she came forward publicly with allegations of his spousal abuse and alcohol problems, it would “carry weight” and might move votes. Danielle Hegseth did — and Tillis cast the deciding vote to push Hegseth through. Tillis says he didn’t go back on his word: It did carry weight with him, but he ultimately couldn’t find “firsthand corroboration.” NEWS FROM THE WILDERNESS ICC YOU: The Democrats (remember them?) have largely stayed out of the headlines since Trump returned to power, but are today facing another divisive moment up on the Hill. A procedural vote later today will provide an initial signal of how Senate Democrats plan to navigate Republicans’ push to sanction the International Criminal Court (ICC) for accusing Israeli leaders of war crimes and crimes against humanity. (The court also leveled similar arrest warrants at Hamas leaders.) Predictably, the bill puts some Dems in a tricky political spot. Changes: Punchbowl’s Andrew Desiderio and Max Cohen report that Senate Dems tried to negotiate changes to the House bill over the weekend — but the expectation is that Republicans will press ahead with the bill as it stands today, hopeful they can pick up the seven Dem votes they need to get over the 60-vote threshold. It’s well worth watching how the vote shakes out to see how many — and which — Dems decide to back the GOP bill, just as it was with the Laken Riley furor a few short weeks ago. Choosing their battles: House Democrats’ first big move to take on Trump could come in response to his firings of at least a dozen IGs, Axios’ Andrew Solender scooped. They could start by joining in litigation and using the bully pulpit, lacking much actual power in Congress. Longer term, some Democrats are considering doing something that used to be just a GOP move: threatening a debt-limit standoff to extract concessions, WaPo’s Jacob Bogage reports. It’s not clear what they’d demand. Choosing their compromises: You don’t see this every day. Sen. Elizabeth Warren (D-Mass.) is out with a Fox News op-ed this morning, offering to work with Trump and Elon Musk to cut wasteful spending, with a focus on reining in DOD and the wealthy. BEST OF THE REST TALLAHASSEE STUNNER: “Republican Lawmakers in Florida Rebel Against DeSantis in Rare Power Move,” by NYT’s Patricia Mazzei: “They rejected [Gov. Ron] DeSantis’s call for a special session on illegal immigration, called one of their own instead and, in an exceedingly rare move, overrode one of his budget vetoes. They even aimed some public disdain his way.” 2026 WATCH: NRSC Chair Tim Scott (R-S.C.) is working to recruit Georgia Gov. Brian Kemp to run against Sen. Jon Ossoff (D-Ga.), including a meeting last week, Semafor’s Burgess Everett reports. Kemp “isn’t in a rush to decide.” DEB HAALAND’S NEXT MOVE: The former Interior secretary is expected to jump into the open race for New Mexico governor, Axios’ Hans Nichols scooped. ROLLING OUT THE WELCOME MAT: Health permitting, Israeli PM Benjamin Netanyahu expects to travel to Washington next week, which would make him the first foreign leader granted a Trump White House meeting this term, Axios’ Barak Ravid scooped. SCOTUS WATCH: Mississippi’s stringent, wide-ranging lifetime voting ban for felons will stand as the Supreme Court yesterday declined to take up voters’ constitutional challenge to it, per Reuters’ Andrew Chung. TWO CAN PLAY THAT GAME: The Pulitzer Prize board yesterday said in a court filing that just as Trump argues civil suits against him in state court should be paused while he’s president, so should his defamation suit against the organization. More from CNN DEMOCRACY WATCH: “They Followed North Carolina Election Rules When They Cast Their Ballots. Now Their Votes Could Be Tossed Anyway,” by ProPublica’s Doug Bock Clark
| | TALK OF THE TOWN | | Melania Trump revealed her official White House portrait. See it here Lester Holt will receive this year’s William Allen White National Citation for his journalism. Google Maps will soon start labeling it the Gulf of America. IN MEMORIAM — “Anchor Dimitri Sotis, whose distinctive warm voice led WTOP’s evening news, dies at 55,” by WTOP’s Neal Augenstein: “Sotis was the evening anchor at WTOP for more than two decades; listeners heard his distinctive timbre weekdays from 7 p.m. to 11:30 p.m.” PLAYBOOK METRO SECTION — Deborah Rutter will step down as president of the Kennedy Center at the end of the year. A search committee will lead the hunt for her successor. Rutter has led the center since 2014. More from the NYT FIRST IN PLAYBOOK — The Republican State Leadership Committee announced its senior leadership team for this election cycle: Edith Jorge-Tuñón as president, Peter Barnes as caucus director, Mason Di Palma as comms director, Justina Hulen as events director, Elliott Husbands as political director, Robyn Knecht as finance director, Joy Lee as general counsel, Carly O’Leary as operations director, Robert Shultz as research director, Sophia Sirianni as digital director, Patrick Trueman as political senior adviser and Alexis Valdez Darnell as recruitment and training senior adviser. — Jim Bognet is now a partner at Brunswick Group. He previously was CEO of co/efficient, and is a former Pennsylvania congressional candidate and an Ex-Im Bank alum. WHITE HOUSE ARRIVAL LOUNGE — Buckley Carlson will be deputy press secretary for the VP, ABC’s Will Steakin and Hannah Demissie report. He previously was deputy chief of staff for Rep. Jim Banks (R-Ind.). MEDIA MOVES — Jim Acosta is planning to leave CNN after being booted from the morning lineup to a midnight slot, Status’ Oliver Darcy reports, news “that is sure to be music to Trump’s ears.” … Alex Isenstadt is joining Axios as a senior politics reporter, per Darcy. He currently is a national political reporter at POLITICO. … Harry Kazianis is now editor-in-chief of 19FortyFive, a defense and national security outlet. He previously was senior director of defense studies at the Center for the National Interest and executive editor of their publishing arm, The National Interest. TRANSITIONS — Former Commerce Secretary Gina Raimondo is now a distinguished fellow and co-chair of a new economic security taskforce at the Council on Foreign Relations. … Hana Greenberg is now VP of advocacy and public finance at Arnold Ventures. She previously was director of government affairs for Target, and is a Retail Industry Leaders Association and Ron Kind alum. … The House Oversight Dems have added Alexandra Bell as comms director and senior adviser and Wintta Woldemariam as chief counsel. They both were previously at OMB, Bell as associate director for comms and strategic planning and Woldemariam as associate director for legislative affairs. … … Tracie Sharp is leaving her role as president and CEO of State Policy Network after more than two decades, with the organization starting a search for her successor. She will remain on board as strategic adviser. … Javier Correoso is now head of federal affairs at Uber. He most recently oversaw state and local policy and comms for the southern U.S. for the company, and is a Marco Rubio campaign alum. … The Cato Institute is launching an external affairs department, supervised by Chad Davis and with Simone Shenny as director of external affairs. Isabella DeSheplo is joining as manager of external affairs from the Consumer Technology Association. HAPPY BIRTHDAY: Justice Amy Coney Barrett … Sen. Jeanne Shaheen (D-N.H.) … Reps. Bennie Thompson (D-Miss.), Linda Sánchez (D-Calif.) and Jeff Crank (R-Colo.) … Nick Burns … New York Lt. Gov. Antonio Delgado … POLITICO’s Peter King and Dani Smith … Robert Satloff of the Washington Institute for Near East Policy … former Reps. Lou Barletta (R-Pa.), Tom Downey (D-N.Y.) and Brian Bilbray (R-Calif.) … Lynnette Johnson Williams of BHJM Communications … Achim Bergmann … Leslie Jones of American Forests … Frank Purcell … Ted Greener of the Association of American Railroads ... Reginald Darby … John Milewski … CNN’s Jay McMichael … Courtney Subramanian … Future Caucus’ Blaine Volpe … Karalee Geis of the House Judiciary GOP (3-0) … Sam Greene … Daniel Remler … Jaime Delgado … Teresa Ervin … Andy Rosenberg of Thorn Run Partners … Helen Kalla … Matt DoBias Did someone forward this email to you? Sign up here. Send Playbookers tips to playbook@politico.com or text us at 202-556-3307. Playbook couldn’t happen without our deputy editor Zack Stanton and Playbook Daily Briefing producer Callan Tansill-Suddath.
| | | | A message from Meta: Open source AI is available to all, not just the few.
Meta’s open source AI, Llama, is free to use – enabling startups like Mendel to build an AI tool that helps match patients to clinical trials.
Now, it takes just one day to match patients instead of hundreds.
Learn more about how others are building with open source AI. | | | | | | | Follow us on Twitter | | | | Subscribe to the POLITICO Playbook family Playbook | Playbook PM | California Playbook | Florida Playbook | Illinois Playbook | Massachusetts Playbook | New Jersey Playbook | New York Playbook | Ottawa Playbook | Brussels Playbook | London Playbook View all our political and policy newsletters | | Follow us | | | | |
