Plus: FBI Director Kash Patel on defense over Olympic video, and Trump turns to tariff plan B.

 MORNING REPORT

 MORNING REPORT

 

Thursday, October 29 | By Jared Gans

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In today's issue:

▪ State of the Union lands amid DHS fight

▪ Trump turns to tariff plan B

▪ Armed Mar-a-Lago intruder killed

▪ FBI's Patel on defense over Olympic video

© The Associated Press | J. Scott Applewhite

Congress gears up for State of the Union amid DHS shutdown

Lawmakers are coming back to Washington, D.C., Monday ahead of President Trump’s State of the Union address with no signs of a deal immediately in reach to reopen the Department of Homeland Security (DHS).

Today marks the tenth day that DHS has been without funding after the two parties were unable to reach an agreement amid a major debate over the Trump administration’s immigration enforcement policies.

Both houses of Congress have been out of session for the past week but now return to the Capitol to try to resume talks and hear the president’s annual speech in which he will lay out his vision for the year.

Since Congress has been out, little progress on DHS funding has been made, with no formal counteroffer from the White House to Democrats’ demands for wide-ranging immigration reform, The Hill’s Al Weaver reports. But some lawmakers told Weaver they’re hopeful for negotiations to start advancing after the address Tuesday and as DHS workers are set to miss their first round of paychecks Friday.

Most of DHS’s employees are still working, as they’re considered essential despite the funding gap, but they’re working without pay. With the rest of the government funded, the effects on the public have been relatively limited compared with those seen during the record-long full government shutdown in the fall and the partial shutdown that ended earlier this month.

But some impacts are starting to break through, particularly with the Transportation Security Administration (TSA).

DHS said Saturday that it intended to pause the TSA PreCheck and Global Entry programs, which are meant to expedite the airport screening process, as the agency redirects staff amid the shutdown. A TSA spokesperson later said PreCheck would remain active and TSA would evaluate on a case-by-case basis as staffing constraints arise.

Still, Democrats and Republicans aren’t showing signs of breaking their impasse.

Democrats, including moderates who broke with their party to end the fall shutdown, are unified behind their plan to oppose DHS funding until the White House agrees to immigration reforms in the aftermath of the deaths of Renee Good and Alex Pretti at the hands of immigration enforcement agents.

Sources told Weaver that Democrats’ second offer to the White House didn’t differ much from their initial one of 10 demands, some of which the GOP has dismissed as nonnegotiable.

Few details about the talks between Senate Minority Leader Chuck Schumer (D-N.Y.) and the administration have been made public. That has given some hope to lawmakers that the conversations are serious, but their status remains unclear.

How Trump addresses the shutdown and negotiations during his speech will be of particular interest on Tuesday night. 

A number of Democrats are planning to protest the president’s address, but party leaders are hoping they take an approach that differs from their protests to Trump’s speech to Congress last year.

Party members used various strategies last year to mark their disagreement with Trump, including by walking out midway through the address and holding up signs accusing Trump of lying. Most prominently, Rep. Al Green (D-Texas) heckled the president until he was ejected from the room.

But Democratic leaders want to avoid those theatrics this time, encouraging protests but forgoing outbursts that might distract from the controversies surrounding Trump’s first year back in office, The Hill’s Mike Lillis reports. If they aren’t able to do that, House Minority Leader Hakeem Jeffries (D-N.Y.) said Democratic legislators should skip the event and participate in alternative programming Democrats are planning.

Most Democrats seem prepared to follow that advice, Lillis reports.

▪ The Hill: Dems denounce DHS tech buildup.

▪ Fox News: Why lawmakers staying in D.C. may have done more harm than good.

▪ The Hill: Poll finds 6 in 10 disapprove of Trump’s performance.

3 Things to Know Today

 
  1. The State Department is warning U.S. citizens in certain parts of Mexico to shelter in place until further notice amid violence after the Mexican army killed the leader of the powerful Jalisco New Generation Cartel, known as “El Mencho.”
  2. FBI Director Kash Patel brushed off questions about his presence in the locker room of the U.S. men's hockey team Sunday, saying he was invited to celebrate the team's victory. At one point, he was seen drinking a beer and banging on a table while the group sang together.
  3. Millions remain under a blizzard warning from a powerful winter storm that struck the Northeast, forcing considerable disruptions. More than 250,000 households were without power as of Monday morning, according to poweroutage.us.

LEADING THE DAY

© The Associated Press | Allison Robbert

WHAT’S NEXT: The battle over the president’s tariff policies is far from over following his defeat at the Supreme Court, which struck down many of his tariffs and limited his authority to impose them.

The court, in a 6-3 ruling Friday, invalidated most of the tariffs Trump has put in place throughout the past year, rejecting his use of the International Emergency Economic Powers Act, a 1977 law that allows the president to “regulate” imports when necessary to respond to national emergencies.

Trump became the first president to try to invoke the law to impose tariffs, but the court’s majority found it doesn’t allow the president to do so.

Still, the ruling didn’t eliminate all of Trump’s tariffs, and he’s already taken steps to reimpose some after the ruling.

Trump announced a 10 percent global tariff after the ruling and later raised it to 15 percent, set to take effect Tuesday. He’s invoking powers granted under Section 122 of the Trade Act of 1974, which allows the president to impose tariffs to address “large and serious” trade deficits.

Section 301 of the law also allows the U.S. trade representative to impose tariffs against countries with “discriminatory” or “unfair” trade practices. But both sections come with limits.

The tariffs imposed under Section 122 can only last for 150 days without congressional authorization, and those under Section 301 can only be implemented after an investigation into a certain country, which can take months.

And key members of Congress don’t seem eager to support Trump’s agenda in imposing tariffs. Republican lawmakers from across the political spectrum are praising the decision as a victory for free trade, separation of powers, or both, The Hill’s Mike Lillis reports.

Rep. Don Bacon (Neb.), a centrist member of the House GOP, said he expects Trump’s new tariffs will be defeated in Congress.

And additional questions remain, including how importers will get refunds for the billions of dollars in tariffs they’ve paid over the past year. The court’s decision didn’t address the refunds, leaving importers to battle with the federal government and lower courts to figure it out.

More than $175 billion could be refunded, according to an analysis by Penn Wharton Budget Model economists.

U.S. Trade Representative Jamieson Greer said the Trump administration needs guidance from the courts on how to handle tariff refunds.

But regardless of how the process goes, any refunds would ultimately be paid back to importers, not consumers, The Hill’s Zach Schonfeld notes.

▪ The Hill: Treasury Secretary Scott Bessent dodges question on refunds.

▪ The New York Times: Countries with trade deals with U.S. in tough spot.

'RED TO BLUE': House Democrats' campaign arm is adding its first candidates to its program dedicated to flipping House seats from Republican to Democrat.

The Democratic Congressional Campaign Committee named 12 candidates running in battleground districts to its "Red to Blue" program Monday, The Hill's Caroline Vakil reports.

Democrats are feeling increasingly bullish about their prospects of winning back control of the House in November with their overperformances in key special elections and the public souring on much of Trump's agenda.

The president's party historically loses seats in Congress during the midterm elections, giving Democrats an opportunity in what is currently a narrow GOP House majority.

INTRUDER NEUTRALIZED: A man who officials say unlawfully entered Trump’s Mar-a-Lago resort in Palm Beach, Fla., armed with what appeared to be a shotgun was shot and killed Sunday morning.

Secret Service chief of communications Anthony Guglielmi said the man entered the perimeter around 1:30 a.m. Sunday. Guglielmi said the man, later identified as 21-year-old Austin Martin from North Carolina, was seen at the north gate of the property also carrying a fuel can.

Two Secret Service agents along with a Palm Beach County Sheriff’s Office deputy responded to the incident, and law enforcement fatally shot the man after he raised the shotgun to a “shooting position,” Palm Beach County Sheriff Ric L. Bradshaw said.

No law enforcement personnel were injured during the incident, which is being investigated by the Secret Service, FBI and sheriff’s office.

Trump was in Washington, D.C., throughout the weekend but frequently spends weekends at the Florida resort.

DEAL POSSIBLE? Iranian Foreign Minister Abbas Araghchi said reaching a deal with the U.S. on Iran’s nuclear program is still “quite possible” despite rising tensions between the two countries.

Araghchi said on CBS News’s “Face the Nation” on Sunday that Iranian officials are working on a draft proposal that they hope can address both sides’ concerns. He said U.S. and Iranian officials can work on those elements together when they meet again in Geneva, Switzerland, likely Thursday.

Trump confirmed Friday that he is considering a limited strike against Iran if it doesn’t reach a deal with the U.S. to restrict its nuclear program. The U.S. has been gradually building up its military presence in the region in advance of a possible attack.

The president said late last week that he believed 10 to 15 days would be enough time for the two sides to reach a deal.

▪ The Hill: Former CIA director says Iran strikes won’t end regime.

▪ The Hill: Former engineers charged with stealing Google trade secrets for Iran.

NETFLIX DEMAND: Trump called on Netflix to fire former United Nations Ambassador Susan Rice from its board of directors after she warned Democrats would pursue an "accountability agenda" if they regain control of Congress.

“Netflix should fire racist, Trump Deranged Susan Rice, IMMEDIATELY, or pay the consequences. She’s got no talent or skills – Purely a political hack!" he said in a post on Truth Social.

The president's warning comes as Netflix is seeking to complete its acquisition of Warner Bros. Discovery over its rival Paramount, a merger that would require approval from federal regulators.

 

WHEN & WHERE

  • The president will participate in an Angel Families remembrance ceremony at 10 a.m. He will participate in a policy meeting at 11 a.m. and executive time at 1 p.m.
  • The House will convene at noon.
  • The Senate will meet at 3 p.m.

ZOOM IN

© The Associated Press | Luca Bruno

MILAN MAGIC: The U.S. men’s hockey team capped off the Olympics on Sunday just before the closing ceremonies with a historic victory over Canada to clinch the gold medal.

The U.S. won a bitterly fought game in overtime, 2-1, defeating its historically dominant archrival. Goaltender Connor Hellebuyck was a standout star for the U.S., stopping more than 40 shots in the finale.

The win is the first for the U.S. men’s hockey team since 1980, which featured the “Miracle on Ice” victory against the Soviet Union in Lake Placid, N.Y. The team also won gold in 1960.

The gold medal was the second for a U.S. hockey team from the Games as the women’s team also came out on top with a 2-1 win in overtime over Canada. It was the third gold medal for the women’s team after victories in 1998 and 2018.

The U.S. saw widespread success throughout the games, placing in second for highest number of gold medals and number of medals overall behind Norway. The 12 gold medals that U.S. athletes won were the most ever by a U.S. Winter Olympic team, surpassing the 10 that the team earned during the 2002 Games in Salt Lake City.

The Milan Cortina Games were a major ratings boost for NBC, which has broadcasted the Winter and Summer Olympics in the U.S. since the 1980s, The Hill’s Dominick Mastrangelo reports.

Some of the network’s biggest ratings during the Games came outside its primetime program, which mostly was composed of recaps. The broadcaster also received its highest weekday audience for the Winter Games ever on Thursday with an average of 25 million viewers.

Aside from the sports themselves, the Games also received attention for politics taking the spotlight. Multiple U.S. Olympic athletes spoke out against the Trump administration’s policies, sparking pushback from Trump and Vice President Vance, while one Ukrainian athlete was disqualified for insisting that he wear a helmet honoring fellow Ukrainian athletes killed during the war with Russia.

Read more takeaways from the games from Mastrangelo here.

▪ ESPN: Historic firsts for the U.S. at the games.

▪ NBC News: How many countries and athletes competed?

ELSEWHERE

© The Associated Press | Eric Gay

CORNYN CONCERN: Republicans are growing increasingly worried that Sen. John Cornyn (R) could lose his primary ahead of Texas’s elections next week.

Cornyn is trying to fend off challenges for the Republican nomination from Texas Attorney General Ken Paxton and Rep. Wesley Hunt. The incumbent has held the seat for more than two decades, but he’s facing his toughest challenge yet, trailing Paxton in the Decision Desk HQ polling average by a few points.

Cornyn has been recently escalating his warnings that Republicans could lose the seat if Paxton wins the nomination, and some Republicans fear state Rep. James Talarico or Rep. Jasmine Crockett, who are contending for the Democratic nomination, could have a rare opening in November, The Hill’s Julia Mueller reports.

Texas election law requires a candidate to win a majority of the vote to clinch the nomination, so the GOP race seems likely to go to a runoff in May. Even as Paxton has led, no candidate appears close to a majority.

Meanwhile, the possibility of an endorsement from the president in the race remains a possible gamechanger, but he has yet to weigh in with early voting underway, Mueller reports.

▪ The Hill: Hunt says time for ‘next generation’ to lead.

▪ Roll Call: Cornyn flatlining in polls.

OPINION

  • At the Olympics, I saw the difference between nationalism and patriotism, David Litt writes in The New York Times.
  • Trump wages a war on truth, promoting fake history and fake science, A. Scott Bolden writes in The Hill.

THE CLOSER

© The Associated Press | Mark Schiefelbein

And finally … C-SPAN has ended speculation that a caller into its network was not the president despite considerable speculation.

A man who identified himself as "John Barron," a Republican from Virginia, railed against the Supreme Court's tariff decision in what sounded like an impression of Trump during a Friday call-in. But the network noted the president was participating in a White House meeting with governors at the time.

“Because so many of you are talking about Friday’s C-SPAN caller who identified himself as ‘John Barron,’ we want to put this to rest: it was not the president,” the network said Sunday.

Trump reportedly used the name "John Barron" as a pseudonym when commenting to media outlets during the 1980s, but he stopped using the name by 1990.

 

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