🏛️ Plus: Top Wall Street lawyer resigns over Epstein ties

 MORNING REPORT

 MORNING REPORT

 

Monday, October 19 | By Jared Gans

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In today's issue:

â–Ş DHS funding set to run out Saturday

â–Ş Trump defends embattled Cabinet members

â–Ş Top Wall Street lawyer resigns over Epstein ties

â–Ş Climate change endangerment finding overturned

© The Associated Press | David Zalubowski

Congress braces for extended DHS shutdown

Lawmakers left Washington Thursday afternoon without plans to vote on a deal to avert a funding lapse at the Department of Homeland Security (DHS), which is set to begin this weekend and doesn't have a clear end in sight.

While members are on notice to return to Washington if a deal is struck, both chambers of Congress are scheduled to be out through next week for the Presidents' Day recess, teeing up a possible extended shutdown.

It's not immediately clear what impact that could have on travelers starting Saturday. Transportation Security Administration (TSA) workers will continue working without pay, but previous shutdowns that extended for weeks have resulted in airport delays.

An uptick in employees calling out sick, which has happened during past funding lapses, could result in longer security wait times. Acting TSA Administrator Ha Nguyen McNeill warned this week that these impacts will likely occur again if a shutdown continues for too long.

While Democrats’ issue is only with policies for U.S. Immigration and Customs Enforcement (ICE) and related agencies, various agencies that fall under the purview of DHS stand to be impacted by the partial shutdown.

All other government departments and agencies outside DHS have already been funded through the rest of the fiscal year.

Many workers for the Federal Emergency Management Agency (FEMA) will be furloughed, limiting its ability to coordinate with state and local partners. Officials have warned this could undermine FEMA’s ability to respond to any natural disasters. 

ICE will continue to largely operate normally, as most of its employees are considered essential. It also has access to billions of dollars in funding through Trump’s One Big Beautiful Bill Act.

Other agencies impacted to varying extents include the Coast Guard and Secret Service. Across the entire department, employees will go without paychecks as they are either furloughed or required to continue working without pay.

The path out of the pending partial shutdown is unclear, with neither side showing much indication of wavering. 

Senate Democrats rejected a late counterproposal from the White House responding to their demands for immigration enforcement reforms, saying it didn’t address their main issues. They voted Thursday to block a motion to advance a House-passed funding bill for DHS, and Sen. Chris Murphy (D-Conn.) blocked a request for unanimous consent to move a two-week funding extension.

Almost all Democrats are in line on insisting there be reforms to ICE and other immigration-related agencies before voting to fund DHS. Every Senate Democrat except Sen. John Fetterman (Pa.), who has a policy of voting against government shutdowns, voted against the funding measure.

But with most Republicans brushing off Democrats’ demands as unrealistic, Congress is at a standstill in negotiations.

â–Ş The Hill: How a DHS shutdown will affect its agencies.

â–Ş The Hill: No off-ramp in sight for DHS stalemate.

Smart Take 
with Blake Burman

This week we saw six House Republicans rebuke Trump on his tariff policy toward Canada. I spoke last night with former House Speaker Kevin McCarthy (R-Calif.) about the president’s hold on the party.

“This president is stronger politically than even Ronald Reagan was,” McCarthy told me, citing Trump’s endorsement power.

“This is what the Republicans themselves are doing, they’re not playing as a team, and inside Congress, you need a team. You need 218 to do anything,” he added.

Funding for DHS will consume D.C. in the coming days and weeks. Republicans are united there. However, as we get closer to November, it’s worth watching whether we see more defections elsewhere from members who are now eyeing their own races.

 

Burman hosts "The Hill" weeknights, 6p/5c on NewsNation.

3 Things to Know Today

 
  1. The president and first lady Melania Trump are visiting Fort Bragg in North Carolina today to meet with special forces members who took part in the raid to capture former Venezuelan leader Nicolás Maduro.
  2. Kathy Ruemmler, the top lawyer for Goldman Sachs, will resign after the recently released Epstein files showed a continued relationship between her and the disgraced financier years after he pleaded guilty to soliciting sex from a minor. This included helping him respond to media inquiries. Her resignation is effective June 30.
  3. The FBI has increased the reward for information leading officials to find Nancy Guthrie to $100,000. The agency also released identifying information about a possible suspect seen on her Nest doorbell camera the night she disappeared.

LEADING THE DAY

© The Associated Press | Evan Vucci

TRUMP DEFENDS CABINET: The president made clear Thursday he stands by Attorney General Pam Bondi after she came under intense fire from Democrats when testifying before Congress the day before, the latest instance of him coming to one of his Cabinet members’ defense.

Bondi faced tough questions about her handling of the Jeffrey Epstein files during her combative testimony before the House Judiciary Committee, but the president praised her.

“AG Pam Bondi, under intense fire from the Trump Deranged Radical Left Lunatics, was fantastic at yesterday’s Hearing on the never ending saga of Jeffrey Epstein, where the one thing that has been proven conclusively, much to their chagrin, was that President Donald J. Trump has been 100% exonerated of their ridiculous Russia, Russia, Russia type charges,” Trump said in a post on Truth Social.

Bondi was lambasted by Democrats and Rep. Thomas Massie (R-Ky.) for the Department of Justice’s (DOJ) handling of the Epstein files’ release. Bondi even faced criticism from some other members of her party, with conservative commentator Erick Erickson calling for her to be fired.

But Trump was apparently pleased with the attorney general's performance, during which she fiercely defended him and went on offense against Democrats, calling on them to apologize to the president and even invoking the record Dow Jones average and suggesting that should be the focus instead.

The president and the White House have publicly defended other embattled Cabinet members recently.

Commerce Secretary Howard Lutnick found himself in hot water earlier this week after recently released Epstein files showed he had traveled to Epstein’s private island in 2012, years after he claimed he had cut off contact with the convicted sex offender. But with calls for Lutnick to resign, White House press secretary Karoline Leavitt said he has Trump’s full support.

Homeland Security Secretary Kristi Noem also faced broad calls to resign amid backlash against immigration enforcement policies and the killings of Renee Good and Alex Pretti last month in Minneapolis. Even some Republicans suggested it was time for her to exit her position. But Trump defended her as well, saying he thought she was doing a “great job.”

The president's defense of Bondi comes as the DOJ is facing a new round of scrutiny over lawmakers’ accusations that the department was spying on them as they viewed the unredacted Epstein documents.

That criticism is coming from across the political aisle, with Speaker Mike Johnson (R-La.) even signaling he was alarmed. He called tracking lawmakers “inappropriate” but suggested it was an "oversight.”

“I don’t think it’s appropriate for anybody to be tracking that. So, I will echo that to anybody involved with the DOJ. And I’m sure it was an oversight. That’s my guess, OK?” he told reporters.

Others were less willing to give the benefit of the doubt.

“I mean, we know why they’re doing it, right? It’s a form of intimidation, potentially. But, I mean, that’s not going to stop me from going back and reviewing more,” Rep. Nancy Mace (R-S.C.) told The Hill.

â–Ş The Hill: Newsmax host slams DOJ over Epstein redactions.

â–Ş Politico: House Dems think Bondi helped their midterm prospects.

DOJ LEADER OUSTED: The head of the DOJ’s antitrust division has been pushed out of the role after a rift with top leaders at the department, multiple outlets reported.

Gail Slater announced her departure in a post Thursday on the social platform X, saying she leaves “with great sadness and abiding hope.” She didn’t cite a reason for stepping down.

“It was indeed the honor of a lifetime to serve in this role. Huge thanks to all who supported me this past year, most especially the men and women of [the antitrust division],” she said.

But multiple sources told CBS News that Slater lost the trust of Bondi and Deputy Attorney General Todd Blanche. They told the outlet that officials believed Slater undermined current cases because of disagreements with the administration and disobeyed requests.

Slater enjoyed wide bipartisan support for her nomination to lead the antitrust division and was confirmed by the Senate last March in a 78-19 vote. But her tenure was marked by turmoil as two of her deputies were fired last year following an internal dispute over the handling of a merger between Hewlett Packard Enterprises and Juniper Networks.

Her exit also comes at a critical time as Netflix and Paramount Skydance compete to try to acquire Warner Bros. Discovery, a merger that would require overcoming federal antitrust concerns.

LANDMARK REVERSAL: The Trump administration officially repealed a major finding that climate change endangers public health, undermining much of the Environmental Protection Agency’s legal ability to set regulations.

Trump announced the decision Thursday at the White House, saying he was eliminating the “endangerment finding” from the Obama administration. The repeal is the latest and most significant effort yet from the administration to reject climate change’s impacts and strike environmental regulations that it argues will harm the economy, The Hill’s Rachel Frazin reports.

The administration also cut climate rules for cars and trucks that were put in place under the endangerment finding. With their elimination, automakers will be under no obligation to reduce their climate impacts.

Trump brushed off concerns that some Americans may have about climate change during his remarks.

“Don’t worry about it, because it has nothing to do with public health. This was all a scam, a giant scam,” he said.

There is overwhelming consensus within the scientific community that human activity, including the burning of fossil fuels, is warming the planet and making extreme weather worse.

â–Ş Politico: Legal challenge to ruling coming.

â–Ş CNBC: How the decision could affect your finances.

KELLY’S VICTORY: A federal judge has blocked the Pentagon’s effort to demote Arizona Sen. Mark Kelly (D) and censure him over his participation in a video reminding military service members they can refuse unlawful orders.

U.S. District Judge Richard Leon, an appointee of former President George W. Bush, acknowledged that service members have fewer First Amendment protections to ensure discipline in the armed forces but rejected the idea that it extends to retired members.

A retired Navy captain, Kelly participated in a video along with five other Democratic members of Congress last fall. The video came amid the Trump administration’s escalating campaign of striking alleged drug-trafficking boats in the Caribbean.

Defense Secretary Pete Hegseth said in a post on X that the ruling would immediately be appealed.

The ruling is the second win for Kelly in the past few days, as a grand jury declined a request Tuesday from the U.S. attorney’s office in Washington, D.C., to indict him and the five other Democrats for their participation in the video.

â–Ş Rolling Stone: Leon quotes Bob Dylan in ruling.

WHISTLEBLOWER COMPLAINT: A whistleblower complaint made about Director of National Intelligence Tulsi Gabbard concerns a conversation two foreign nationals had about the president's son-in-law, Jared Kushner, multiple outlets reported.

Lawmakers were briefed last week on the complaint, which accused Gabbard of trying to prevent others from seeing it. Additional details about the substance of the complaint are unclear.

ONE WEEK LATER: Trump said Thursday he hasn’t disciplined or fired the staffer who the White House claims was responsible for posting the racist video on his Truth Social account depicting former President Obama and former first lady Michelle Obama as apes.

 

WHEN & WHERE

  • The president will deliver remarks to Fort Bragg military families in Fayetteville, N.C., at 1:30 p.m. He and the first lady will then participate in a private military engagement before traveling to Palm Beach, Fla., for a private dinner at 7:45 p.m.
  • The Senate will meet at 9 a.m. for a pro forma
  • The House will convene at 10 a.m. for a pro forma session.

ZOOM IN

© The Associated Press | Cliff Owen

POTOMAC SPILL: A spillover of wastewater in the Potomac River has grown to become one of the largest in U.S. history.

DC Water, the local water utility for Washington, D.C., first announced the spill last month. It began when part of a sewer system known as the Potomac Interceptor collapsed, allowing gallons of wastewater to seep into the river.

The utility estimated last week that about 243 million gallons of wastewater have flowed into the river. Most of it occurred in the first five days after the spill, and pumping operations have been successful at slowing it down.

But Dean Naujoks, who serves as the Potomac riverkeeper, told The Baltimore Sun in an interview that the largest comparable spill he could find was one that released 230 million gallons along the U.S.-Mexico border in 2017.

Gussie Maguire, a Maryland staff scientist with the Chesapeake Bay Foundation, told The Hill that sewage overflows are more common than many may realize.

The district's drinking water remains unaffected by the spill because the breach happened downstream of where water is gathered for consumption.

â–Ş WJLA: Spill could take months to fix.

â–Ş NBC4: Nondisposable wipes cause another spill.

ELSEWHERE

© The Associated Press | Ryan Murphy

OPERATION ENDING: Border czar Tom Homan said the Trump administration’s enhanced immigration enforcement efforts in Minneapolis are set to officially conclude after weeks of high tensions in the city.

Homan defended the work of ICE and Border Patrol, pointing to a decrease in agitators and cooperation from local officials as helping the administration reach success. He said a “significant drawdown” has already been underway this week and will continue through next week.

The administration already announced after Pretti’s death that it would reduce its operations, with 700 immigration enforcement officials starting to withdraw from the city. But Homan’s announcement could signal an end to the standoff in Minnesota’s Twin Cities that’s lasted for weeks and saw widespread protests against ICE.

While immigration agents may be pulling out from Minneapolis, the administration’s immigration enforcement policies are ongoing with mass deportations still a top priority for Trump and members of his administration. But Trump did say last week that he believes officials could use a “softer touch” on enforcement, leaving questions about the approach going forward.

â–Ş The Hill: Minnesota officials testify to Congress on ICE operations in the state.

â–Ş USA Today: Anti-ICE protests at largest yoga studio in U.S.

OPINION

  • What US and Korean conservatives can learn from Japan’s election, Joseph Yi and Shaun O’Dwyer write in The Hill.
  • ICE is on a dark path. Congress must act now, The New York Times editorial board writes.

THE CLOSER

© The Associated Press | Mark Schiefelbein

And finally … 👏👏👏 Congrats to this week’s Morning Report quiz winners! They’re ready to amaze their friends with their presidential knowledge heading into the weekend.

🧩 Here’s who went 4/4: Stan Wasser, Robert Hall, Richard Baznik, Rick Schmidtke, Carmine Petracca, Jess Elger, Ned Sauthoff, Linda Field, Dennis Barksdale, Jenessa Wagner, Stanton Kirk, John van Santen, Lori Benso, William Chittam, Michael Salanik, Robert Bradley and Steve James.

Presidents Day is the third Monday in February, so it can fall anywhere between Feb. 15 and Feb. 21.

The holiday that started as a celebration of George Washington’s birthday was celebrated informally after his death in 1799, but it didn’t become a holiday until Congress made it so in 1879.

Since the holiday was originally intended only to honor the first president, Congress named the holiday, first celebrated only on Feb. 22, as Washington’s Birthday. Congress passed the Uniform Monday Holiday Act in 1968 to make it the third Monday in February, and it has come to be known as Presidents Day to celebrate all commanders in chief. But the name was never officially changed, meaning Washington’s Birthday is still on record as the official federal name.

Theodore Roosevelt has the most national parks named in his honor, with six commemorating him. Abraham Lincoln is second.

 

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