Document zQ49wJmEYXJ4N28ab9VOyX6D0

[EXTERNAL] DAILY ISSUE BRIEFS From: To: Bcc: Date: Anne Canfield (b) (6) "undisclosed recipients:;" "Enger, Michelle A. EOP/OMB" (b) (6) Thu. 06 Feb 2025 08:57:30 -0500 ISSUE BRIEFS What to Know in Washington: Senate Split Sparks WH Meetup BUDGET: Senate to move budget first as House struggles CONGRESS TRACKER: Republicans might soon need Democrats' help DEFENSE: Trump's aides aim to temper owning Gaza plan ENERGY: Trump halts renewables permitting on private land FINANCE: More rich taxpayers learn their IRS data was stolen HEALTH: DOGE team mines Medicare agency for fraud TAX: Senate moves to defer tax bill in break with House TECH: Social media ban for kids advances in Senate TRANSPORTATION: DOGE to 'upgrade' aviation system, Duffy says Bloomberg Government Senate Split Sparks WH Meetup: What to Know in Washington By February 6, 2025 7.11AM ET / February 6, 2025 07:11AM ET / Bloomberg Government Donald Trump will meet with Republican lawmakers Thursday to discuss the budget resolution the White House said in a notice posted just after midnight. But first, you should know: White House aides want to tone down Trump's Gaza takeover. Contractors and NGOs may review doing business with the federal government if the Trump administration's USAID shutdown is a prelude of things to come. Democrats wants answers from Treasury Secretary Scott Bessent and Speaker Mike Johnson on Elon Musk's access to Treasury data. Trump Meeting Set After Senate Signals Split with House A meeting with Republican members of Congress was added to President Donald Trump's schedule today as as Senate Republicans prepare to jump ahead of the House and make the first step toward the budget reconciliation process. 1 OMBA401FY25609ALitigation_000000137 Sierra Club v. OMB, Case No. 25-cv- 05732-LJC OMB 2025-825 SC_EVERSPLIT0022663 Senate Budget Committee Chair Lindsey Graham (R-S.C.) told reporters Senate Republicans "are of the opinion that it is time for the Senate to move" its own budget resolution next week that would focus on border and defense funding but not on tax cuts due to expire at the end of the year. The move comes as House Speaker Mike Johnson (R-La.) struggles to put together a resolution that can appease deficit hawks in his conference. Graham said the roughly $300 billion budget reconciliation measure, split about equally between border and defense, would be offset. The White House announcement of the meeting, which was released after midnight, did not list who would be attending. Read More Read BGOV's Congress Tracker for our breakdown of lawmakers' agenda and the politics driving it. Aides Seek to Tone Down Trump Proposal for US to `Own' Gaza President Donald Trump's proposal for a US takeover of the Gaza Strip has broadened the debate about the future of the area, as aides to the president seek to tone down his pledge to depopulate and take over Gaza. The approach, according to Trump, requires moving more than 2 million Gazans out of the war-ravaged enclave, with the president even raising the possibility of deploying US troops. Israel welcomed the suggestion Trump made Tuesday, but it was widely condemned elsewhere. By Wednesday, the message from aides was that Trump was thinking creatively out loud. White House Press Secretary Karoline Leavitt insisted that US taxpayers wouldn't foot the bill, and said the president hadn't "committed to putting boots on the ground in Gaza." She also indicated the displacement of Palestinians might only be temporary, rather than the permanent relocation Trump has repeatedly suggested. Secretary of State Marco Rubio delivered a similar message, saying that Trump wanted the US to play a leading role in rebuilding Gaza, not own it. Read iviole 2 OMBA401FY25609ALitigation_000000137 Sierra Club v. OMB, Case No. 25-cv- 05732-LJC OMB 2025-825 SC_EVERSPLIT0022664 Ukraine, Syria Plans Drawn Up: Trump's Gaza idea comes as he is set to present a longawaited plan to end Russia's war on Ukraine at the Feb. 14-16 Munich Security Conference in Germany, according to people familiar with the matter. Elements include potentially freezing the conflict and leaving territory occupied by Russian forces in limbo while providing Ukraine with security guarantees to ensure that Moscow can't attack again. Read More Further coverage: Trump Flashes Newfound Imperialist Streak in White House Return Trump Call for Gazans to Depart Echoes in Their Destroyed Homes 3 OMBA401FY25609ALitigation_000000137 Sierra Club v. OMB, Case No. 25-cv- 05732-LJC OMB 2025-825 SC_EVERSPLIT0022665 Foreign Aid Lockout Shakes Contractors' Faith Funding shortfalls, furloughs, and the threat of closures is forcing contractors and nongovernmental organizations to review their relationship with the federal government -- especially after USAID cut off payments. USAID halted payments and credit to its partner organizations as part of a 90-day funding pause issued by President Donald Trump and Elon Musk. The chaotic stoppage could permanently alter the federal government's relationship with organizations that do work overseas, contractors and NGO leaders told BGOV's Jack Fitzpatrick. The agency stiffed companies for work they did months ago, to the tune of hundreds of millions of dollars. NGOs face the threat of closure. Plus, the waiver issued by Secretary of State and Acting USAID Director Marco Rubio, meant to allow lifesaving work to continue, hasn't worked because the agency's employees aren't responding to requests and its money still isn't being sent to organizations. Contractors are being asked to float the operations of the federal government on their own dime, said Steve Schmida, chief innovation officer at Resonance Global, which works with the agency. That could force companies to rethink their relationship with the federal government. "This is not a high-margin business," Schmida said in an interview. "Despite what everyone thinks, a typical USAID contractor earns about a 5% profit. If we had any idea that the full faith and credit of the federal government was going to be in question, we would not work for 5%." Read More Angry USAID Workers: Meanwhile, Democratic lawmakers who joined a rally to protest Trump's freeze on USAID activity found themselves under attack by the very same protesters. "Do your job! Do your job!" the crowd of hundreds chanted at the lawmakers addressing the gathering in a Capitol Hill park Wednesday. Several people at the rally held up signs calling for more forceful opposition to Trump, with one placard simply reading "Democrats do something!" The outpouring of anger dovetails with broader resentment among Democratic voters over the failure of their party's leadership to mount a meaningful resistance as Republican Trump's White House has moved to shrink the government workforce, freeze federal funds, boost fossil fuels, vilify diversity initiatives, and radically reorient US foreign policy. Read More Ix I The Trump Administration White House Says Musk Will Police His Own Conflicts of Interest The White House said Elon Musk, the billionaire leading President Donald Trump's government cost-cutting efforts, will determine if there are conflicts of interest between his work reviewing federal spending and his overlapping empire of six companies. Democrats Press Bessent on Musk's Access to Personal Tax Info 4 OMBA401FY25609ALitigation_000000137 Sierra Club v. OMB, Case No. 25-cv- 05732-LJC OMB 2025-825 SC_EVERSPLIT0022666 Treasury Secretary Scott Bessent should divulge whether billionaire Elon Musk and his team improperly reviewed confidential taxpayer data when it gained access to the Treasury Department's payments system. House Ways and Means Committee Democrats wrote Wednesday. Trump Taps Mike Davis Ally to Advise on Judicial Selection The Republican National Committee's lead elections attorney, who is a close ally of conservative legal advocate Mike Davis, has joined the White House Counsel's office to work on judicial nominations, according to two people familiar with the administration's plans. Musk 'Buyout' Taken by 40,000 Federal Workers as Deadline Nears The Trump administration's offer to pay federal employees through the end of September if they agree to leave by the end of February has attracted more than 40,000 sign-ups as of Wednesday -- about 2% of the federal civilian workforce. Rubio Snubs G-20 Meeting Citing South Africa's Focus on Equality US Secretary of State Marco Rubio said he won't attend a Group of 20 summit in Johannesburg later this month, citing among his reasons South Africa's efforts to address inequality. Bondi to Probe DOJ Weaponization, Target 'Sanctuary' Cities Newly sworn-in Attorney General Pam Bondi kicked off her first day in office with a slew of memos announcing a new working group to examine past "weaponization" of the Justice Department and plans to withhold federal funding from sanctuary cities. Bondi Diminishes Justice Department White Collar Enforcement The Justice Department is scaling back enforcement of laws governing foreign lobbying transparency and bribes of foreign officials, Attorney General Pam Bondi announced. Data Hoarders Are Rushing to Save Vanishing US Health Records Government agencies' moves to comply with President Donald Trump's executive orders, which affect everything from gender language to scientific publications, have sparked feverish efforts to archive government data in online repositories like the Internet Archive. Scientists and archivists say they're determined to preserve a historical record and guard against potential erasure or revision. To contact the editors responsible for this story: Giuseppe Macri at qmacriAbqov.com; Jeannie Baumann at ibaumann bloomberqindustry.com; Herb Jackson at hiacksonAbloombergindustry.com 5 OMBA401FY25609ALitigation_000000137 Sierra Club v. OMB, Case No. 25-cv- 05732-LJC OMB 2025-825 SC_EVERSPLIT0022667 El Budget Brief By Ken Tran and Jack Fitzpatrick I Thursday, February 6, 2025 View Online Senate to Move Budget Next Week, Leapfrogging House The tides are turning against House Republicans' reconciliation plans as Senate Republicans gear to jump ahead of the House and make the first step toward the budget reconciliation process. Senate's had enough: Senate Budget Committee Chair Lindsey Graham (R-S.C.) told reporters Senate Republicans "are of the opinion that it is time for the Senate to move" its own budget resolution next week as House Speaker Mike Johnson (R-La.) struggles to put together a resolution that can appease deficit hawks in his conference. "I appreciate what the House is trying to do, but I think it's very important," to get resources to the southern border, including in Immigration and Customs Enforcement, Graham told reporters yesterday. "That means more ICE agents, build the wall, finish technology to secure the border and increase bedspace so you don't have to let people go. That can only happen with new money." Trump will meet with Republican lawmakers Thursday to discuss the budget resolution, the White House said in a notice posted just after midnight, Washington time. The public schedule of Trump's planned events didn't include a list of attendees for the meeting. Read More The resolution will include $150 billion for the border and roughly another $150 billion in additional defense spending, Graham said. The costs of the proposals will be offset, he promised. Graham's decision to move forward with the Senate's own budget resolution runs contrary to House Republicans' stance to make good on President Donald Trump's agenda with one sweeping reconciliation package. Senate Republicans have mostly deferred to Johnson to move first, given the thin margins in the House, along with Trump's own preference for "one big beautiful bill." 6 OMBA401FY25609ALitigation_000000137 Sierra Club v. OMB, Case No. 25-cv- 05732-LJC OMB 2025-825 SC_EVERSPLIT0022668 The Senate moving first could put additional pressure on Johnson and other House Republican leaders to come to an agreement on a resolution as GOP lawmakers scramble to come up with a solution. Johnson intended to mark up a resolution this week, but conservative hardliners have held up the initial step in demand of deep spending cuts totaling at least $2 trillion. House Budget Committee Chair Jodey Arrington (R-Texas) maintained House lawmakers were still making progress and warned against passing two bills. The razorthin majority combined with a deeply fractured conference could endanger congressional Republicans ability to enact Trump's agenda, he said. "The president understands that the biggest political challenge will be in the House," Arrington said. "And anything we do to make the House more complicated is going to only hurt all of our desired outcomes on the bill." The impasse has set a new tone within House Republicans as rank-and-file lawmakers start to consider whether enacting Trump's agenda through the Senate's preferred strategy of two bills is the better option. "We all kind of saw this one coming," Rep. Eric Burlison (R-Mo.), a member of the House Freedom Caucus, said. "More and more" lawmakers, he added, were warming up to a two-track approach. One of those members, Rep. Ryan Zinke (R-Mont.), said he still prefers one bill, but noted Trump may want lawmakers to secure an early win on the border for him rather than getting caught up in the reconciliation process. "I don't think President Trump has the operational patience to wait until reconciliation because he's gonna run out of money on the border," Zinke said, calling the current situation "an unknown." House Republican Conference Chair Lisa McClain (R-Mich.) said House GOP lawmakers plan to move forward "regardless of what the Senate does." At the same time, McClain said the House could get jammed by the Senate if Graham moves fast enough. "Who knows," McClain said with a shrug. "This thing can take 17 different twists and turns." USAID Contracting Meltdown: USAID's broad "stop-work" order has cut off funding to contractors and nongovernmental organizations, even for work done last year. The chaotic stoppage has some contractors rethinking their future relationship with the federal government. "This is not a high-margin business," Steve Schmida, chief innovation officer of USAID contractor Resonance Global said in an interview. "Despite what 7 OMBA401FY25609ALitigation_000000137 Sierra Club v. OMB, Case No. 25-cv- 05732-LJC OMB 2025-825 SC_EVERSPLIT0022669 everyone thinks, a typical USAID contractor earns about a 5% profit. If we had any idea that the full faith and credit of the federal government was going to be in question, we would not work for 5%." Some non-governmental organizations won't be able to survive the planned 90-day stoppage, said Tom Hart, CEO of InterAction, a group that works with NGOs. Three USAID contractors are owed a combined $275 million for work performed in November and December, which would have been paid in January under normal circumstances, an employee of an agency contractor told Bloomberg Government, speaking on condition of anonymity to discuss sensitive information. The waivers for the stop-work order -- meant to continue life-saving work -- don't appear to be working. When organizations contact USAID, "no one will respond to their phone calls about what qualifies," Hart said. "And even for those who have gotten the paperwork, the money has stopped." Read More Also Read: Angry USAID Backers Turn on Democrats for Failing to Fight Back More Budget News The March 14 government funding deadline is fast approaching. House Appropriations Committee Chair Tom Cole (R-Okla.) told reporters yesterday that appropriators were still negotiating in good faith on topline numbers. Negotiations though are still dragging and some members, are beginning to push for a short-term stopgap, which is also known as a continuing resolution, or perhaps a fullyear extension of current funding levels, he said. Cole said he's not "in the CR business" but understood why a stopgap could make sense to some lawmakers. "There's certainly people proposing a" full-year stopgap, Cole said. "To be fair to them, when you're almost halfway through the year anyway, there's some merit in that position." California Gov. Gavin Newsom (D) visited Washington yesterday to meet with President Donald Trump and lawmakers to discuss disaster aid addressing the aftermath of the California wildfires now that they're contained. 8 OMBA401FY25609ALitigation_000000137 Sierra Club v. OMB, Case No. 25-cv- 05732-LJC OMB 2025-825 SC_EVERSPLIT0022670  "We will not stop working until everyone impacted by the fires has the resources they need to rebuild and recover," Newsom said in a post on X. View Online Congress Tracker By Jonathan Tamari I Thursday, February 6, 2025 INSIDE News From the Hill Today's Floor Agenda Off-the-Floor Highlights Republicans' split-screen approach to governing is raising the risks of a government shutdown next month. The Trump administration and Republicans in Congress are simply steamrolling Democrats. They're pushing for one or two sweeping GOP-only reconciliation bills, while President Donald Trump defies laws and Elon Musk blocks visibility into his hurricaneforce shredding of parts of the federal government. Democratic members of Congress couldn't even walk into USAID offices, and have resorted to rallies outside buildings and all-night speeches in the Senate to try to make their case. But Republicans will almost certainly need Democratic votes to avert a shutdown when federal funding expires March 14, and to raise the debt ceiling and pay government obligations when the borrowing limit hits soon after. Failing to do so -- within Trump's first two months in office -- could deliver an economic shock and short-circuit his presidential honeymoon. So even as committee chiefs in both parties negotiate a budget compromise, party leaders are sending out warnings. Democrats, watching Trump kick congressional powers aside, say they can't trust him to uphold a bargain. If Republicans want to claim total dominance of government, they say, the GOP can also put up the votes to fund it. "The most important factor in the appropriations process is trust, and we have to trust that when we're negotiating with Republicans, that they're acting in good faith," thirdranking House Democrat Rep. Pete Aguilar (Calif.) told BGOV. His comments echoed warnings from Senate Appropriations Committee top Democrat Patty Murray (Wash.), who last week said Trump's unilateral move to freeze some 9 OMBA401FY25609ALitigation_000000137 Sierra Club v. OMB, Case No. 25-cv- 05732-LJC OMB 2025-825 SC_EVERSPLIT0022671 spending "makes it virtually impossible for us to reach a bipartisan compromise on appropriations. This is one of the few instances in which Democrats hold some leverage. Unlike the GOP's planned budget reconciliation bills, which use congressional rules to sidestep the Senate supermajority requirement for most legislation, the funding package will have to be bipartisan. It'll take 60 votes in the Senate, and Democratic help in the House because hard-right Republicans routinely oppose spending and borrowing measures. Democrats were eager to offer a hand last Congress, portraying themselves as the responsible party. They repeatedly helped the GOP, and country, avert fiscal disasters amid divided government and the Republican majority's inability to advance bills out of the House. They signaled they're not so eager to help this time. "Republicans control the White House, the Senate, and the House. It is completely on Republicans to not have a government shutdown," the chamber's fourth-ranking Democrat Rep. Ted Lieu (Calif.) said. Republicans cast Democrats as sore losers, throwing a wrench into the system because of Trump's success. "They're the ones that are apoplectic all the time about the terrible harm," shutdowns cause, Speaker Mike Johnson (R-La.) said Wednesday. "Because President Trump is doing exactly what he said he would do, they changed their tune." Democrats, he suggested, would risk a backlash if they voted against a bill that would keep the government open. And Democrats might have some incentive to support a funding plan, because Republicans could attach California wildfire aid. But history also says the party that initiates a shutdown suffers politically. That held true during Trump's first term, when he oversaw the longest shutdown in US history, lasting more than a month. If Republicans want to claim a mandate, Democrats say, they should take responsibility. "They asked for this," Aguilar said. "It's their responsibility to fund the government." As Musk runs rampant, goodwill is in short supply. 10 OMBA401FY25609ALitigation_000000137 Sierra Club v. OMB, Case No. 25-cv- 05732-LJC OMB 2025-825 SC_EVERSPLIT0022672 News From the Hill GOP Members to White House: Trump will meet with Republican lawmakers Thursday to discuss the budget resolution, the White House said in a notice posted just after midnight. The public schedule of Trump's planned events didn't include a list of attendees for the meeting. The tides are turning against House Republicans' reconciliation plans as Senate Republicans gear up to jump ahead of the House and make the first step toward the budget reconciliation process, Ken Tran and Jack Fitzpatrick report in today's BGOV Budget Brief. Read More Dems Criticized: Democratic lawmakers at a rally in Washington to defend USAID soon found themselves under attack for not mustering fierce-enough opposition to the Trump administration's assault on the agency. "Do your job! Do your job!" the crowd of hundreds chanted at the lawmakers addressing the gathering in a Capitol Hill park yesterday, lain Marlow reports. Attendees expressed frustration that the lawmakers hadn't done more to push back against the attempt by Trump and Musk to shut down the agency. Read More Meanwhile, Jack Fitzpatrick reports that funding shortfalls, furloughs, and the threat of closures have forced contractors and nongovernmental organizations to rethink their relationship with the federal government after USAID cut off payments. Read More Musk's Treasury Access: Treasury Secretary Scott Bessent should divulge whether Musk and his team improperly reviewed confidential taxpayer data when it gained access to the Treasury Department's payments system, House Ways and Means Committee Democrats wrote Wednesday. Democrats worry inquiries by Musk's team from the Department of Government Efficiency could disrupt the ongoing filing season. They sought the names of any individuals who sought confidential data, as well as info about the data and taxpayers potentially affected, Zach C. Cohen reports. Read More 11 OMBA401FY25609ALitigation_000000137 Sierra Club v. OMB, Case No. 25-cv- 05732-LJC OMB 2025-825 SC_EVERSPLIT0022673 China Panel Grows: Reps. Greg Stanton (D-Ariz.) and Jill Tokuda (D-Hawaii) will join the House's China panel this Congress, while Rep. Jake Auchincloss (D-Mass.) will exit, Democrats announced Wednesday, Maeve Sheehey reports. Rep. Raja Krishnamoorthi (III.) will again serve as ranking member alongside Chairman John Moolenaar (R-Mich.). The panel will be under intense pressure as Congress navigates Trump's decisions to delay a ban on TikTok and levy tariffs on China. Both Stanton and Tokuda voted with a bipartisan House majority last year to force TikTok to divest from China. Today's Floor Agenda Legislation to classify fentanyl-related substances as Schedule I drugs under the Controlled Substances Act on a permanent basis (H.R. 27; BGOV Bill Analysis) is scheduled for a House floor vote today. The rule adopted yesterday makes one amendment in order. First votes are at 4 p.m. For more on the bills announced for floor action this week, see the House Agenda for the Week of Feb. 3 prepared by Bloomberg Government's legislative analysts. For the daily schedule from Majority Leader Steve Scalise (R-La.), click here. Russ Vought's nomination to be director of Office of Management and Budget would get a vote in the Senate around 7 p.m. Senators voted 53-47 yesterday to limit debate. The chamber remained in session overnight as Democrats gave speeches about Vought, his role in Project 2025, and the administration's policies. Off-the-Floor Highlights More of Trump's nominees will move through Senate committees today: Kash Patel's nomination to be director of the FBI is scheduled for a vote in the Judiciary Committee, though panel rules allow members to ask to delay action for at least seven days. Jamieson Greer's nomination to be US trade representative gets a Finance Committee hearing. 12 OMBA401FY25609ALitigation_000000137 Sierra Club v. OMB, Case No. 25-cv- 05732-LJC OMB 2025-825 SC_EVERSPLIT0022674 Former President Joe Biden's crypto regulations will be discussed at a House Financial Services subcommittee hearing featuring the chief legal officer of Coinbase and the CEO of MARA. House panels are also set for hearings about unmanned aerial systems in a Transportation subcommittee, illicit drug threats in an Energy and Commerce subcommittee, and California wildfires in a Judiciary subcommittee. Lawmakers are set to join today's National Prayer Breakfast. Sens. Maggie Hassan (D-N.H.) and Roger Marshall (R-Kan.) are the event's honorary co-chairs. For a list of today's hearings and markups, click here. Track nomination and markup votes here. View Online Defense Brief Thursday, February 6, 2025 Trump Aides Seek to Tone Down His Proposal for US to `Own' Gaza President Donald Trump's proposal for a US takeover of the Gaza Strip have broadened the debate about the future of the area, as aides to the president sought to tone down his pledge to depopulate and take over Gaza. The approach, according to Trump, requires moving more than 2 million Gazans out of the war-ravaged enclave, with the president even raising the possibility of deploying US troops. Israel welcomed the suggestion Trump made Tuesday, but it was widely condemned elsewhere. By Wednesday, the message from aides was that Trump was thinking creatively out loud. White House Press Secretary Karoline Leavitt insisted that US taxpayers wouldn't foot the bill, and said the president hadn't "committed to putting boots on the ground in Gaza." She also indicated the displacement of Palestinians might only be temporary, rather than the permanent relocation Trump has repeatedly suggested. Secretary of State Marco Rubio delivered a similar message, saying that Trump wanted the US to play a leading role in rebuilding Gaza, not own it. Read More 13 OMBA401FY25609ALitigation_000000137 Sierra Club v. OMB, Case No. 25-cv- 05732-LJC OMB 2025-825 SC_EVERSPLIT0022675  Also Read: Why Trump's Gaza Takeover Proposal Has Many Obstacles: QuickTake Ukraine, Syria Plans Drawn Up: Trump's Gaza idea comes as he is set to present a long-awaited plan to end Russia's war on Ukraine at the Munich Security Conference in Germany next week, according to people familiar with the matter. The proposal would be delivered at the Feb. 14-16 conference in the Bavarian city a week before Russia's war hits the three-year mark. Elements include potentially freezing the conflict and leaving territory occupied by Russian forces in limbo while providing Ukraine with security guarantees to ensure that Moscow can't attack again. Read More The Defense Department also plans to withdraw troops from Syria, according to an NBC report. Read More 14 OMBA401FY25609ALitigation_000000137 Sierra Club v. OMB, Case No. 25-cv- 05732-LJC OMB 2025-825 SC_EVERSPLIT0022676 Happening on the Hill Anthony Tata. a Trump loyalist with a history of Islamophobic and inflammatory statements, has been tapped by the president to serve as the Pentagon's personnel chief, Roxana Tiron reports. The White House sent Tata's nomination to the Senate on Feb. 3, according to congressional records. 15 OMBA401FY25609ALitigation_000000137 Sierra Club v. OMB, Case No. 25-cv- 05732-LJC OMB 2025-825 SC_EVERSPLIT0022677 A retired Army brigadier general, Tata served as the Pentagon's No. 3 official in an acting capacity during the first Trump administration, after the Senate Armed Services Committee canceled his hearing amid concerns that the panel didn't have enough information from the White House about him. Statements made by Tata on X contributed to the panel's cancellation of his confirmation hearing at the time, as several of the nowdeleted posts disparaged the religion and said it fueled more terror than other religions. Read More Concerns over Trump's funding freeze on homeland security programs prompted a resolution of inquiry from Rep. Bennie G. Thompson (D-Miss.), ranking member of the House Homeland Security Committee. Under the resolution, Homeland Security Secretary Kristi Noem would have to provide Thompson's committee with documents related to security assessments associated with efforts to freeze payments of homeland security programs he said support first responders, provide security funding to houses of worship, and provide grants for towns and cities to secure their networks. Read the Resolution Today's Hearings: Kash Patel's nomination to lead the FBI is set for a vote today before the Senate Judiciary Committee. Meeting Website Counter-unmanned aircraft systems will be the focus of a House Transportation and Infrastructure panel hearing today. Hearinq Website Editor's Picks 16 OMBA401FY25609ALitigation_000000137 Sierra Club v. OMB, Case No. 25-cv- 05732-LJC OMB 2025-825 SC_EVERSPLIT0022678 US Set to Unveil Trump Plan to End Three-Year War in Ukraine US allies expect President Donald Trump's administration to present a long-awaited plan to end Russia's war on Ukraine at the Munich Security Conference in Germany next week, according to people familiar with the matter. Read More Rubio Snubs G-20 Meeting Citing South Africa's Focus on Equality US Secretary of State Marco Rubio said he won't attend a Group of 20 summit in Johannesburg later this month, citing among his reasons South Africa's efforts to address inequality. Read More Hegseth, Panama's Mulino Discussed Military Cooperation in Call US Secretary of Defense Pete Hegseth held a call with Panamanian President Jose Raul Mulino Wednesday, according to a readout from Defense Department. Read More Hegseth Talks South China Sea `Deterrence' With Philippines US Defense Secretary Pete Hegsethreaffirmed Washington's "ironclad" commitment to a mutual defense treaty with the Philippines during a call with his counterpart in Manila in the face of geopolitical tensions in South China Sea. Read More Bondi Diminishes Justice Department White Collar Enforcement The Justice Department is scaling back enforcement of laws governing foreign lobbying transparency and bribes of foreign officials, Attorney General Pam Bondi announced. Read More 17 OMBA401FY25609ALitigation_000000137 Sierra Club v. OMB, Case No. 25-cv- 05732-LJC OMB 2025-825 SC_EVERSPLIT0022679 Trump Says He Wants New Nuclear Deal Letting Iran `Prosper' US President Donald Trump said Wednesday he's willing to immediately start working on a new nuclear deal with Iran that allows the country to "peacefully grow and prosper," seemingly softening his stance on the Islamic Republic. Read More Pentagon Says 10 `High-Threat' Migrants Arrive at Guantanamo Bay The Pentagon said Wednesday that 10 undocumented migrants have been transported to its detention facilities in Guantanamo Bay, Cuba, the latest effort by the Trump administration to demonstrate its aggressive use of the military to enforce immigration restrictions. Read More El View Online Energy Brief Thursday, February 6, 2025 Trump Halts Permitting for Renewables Projects on Private Land The Army Corps of Engineers has temporarily paused permitting on 168 renewable energy projects, a potential escalation of President Donald Trump's pledge to block wind and solar energy in favor of fossil fuels. The freeze is expected to last through at least Friday when the corps expects to receive the administration's feedback on these proposals, Army Corps spokesperson Doug Garman said Wednesday. If it lasts longer, it could slow renewable energy development, said Mark Sudol, a former Army Corps official. The Army Corps issues federal jurisdictional determinations and dredge-and-fill permits for projects on private land that affect waters of the US, or WOTUS, under Section 404 of the Clean Water Act. Trump froze authorizations in January for wind and solar projects on federal lands and water. Read More Also Read: Trump Freezes Renewable Projects on Federal Lands and Waters 18 OMBA401FY25609ALitigation_000000137 Sierra Club v. OMB, Case No. 25-cv- 05732-LJC OMB 2025-825 SC_EVERSPLIT0022680 Trump's quest to increase domestic oil production resurgence may hit its own hurdle. Fresh data shows US oil exports grew at the slowest pace outside the throes of the pandemic, with daily exports rising to a record 4.103 million barrels in 2024 but up only 1% from a year earlier. Read More Trump's trade war could make it worse. China, the engine of oil consumption for the past two decades, slashed its purchases by half last year, and Beijing recently announced a 10% retaliatory tariff on purchases of US crude oil. Canada may also shift its long-standing resistance to building new oil and gas pipelines there. Read More 1 Happening on the Hill Mining for National Security: The US must increase domestic extraction and processing of critical minerals to create a resilient supply chain and reduce reliance on China, the head of a nonprofit energy company that aims to reduce emissions will tell a House panel today. Improving the federal permitting process and limiting litigation over mining projects are two ways to ramp up US production, said Jeremy Harrell, CEO of ClearPath, in prepared remarks before the House Natural Resources Subcommittee on Energy and Minerals. "Dependence on China will become a critical vulnerability when the United States needs to build essential infrastructure and cannot proceed because China refuses to sell us the materials the American people rely on," according to Harrell's remarks, obtained by Bloomberg Government. Opening Statement' Hearing Website --Kellie Lunney Also Happening on the Hill: 19 OMBA401FY25609ALitigation_000000137 Sierra Club v. OMB, Case No. 25-cv- 05732-LJC OMB 2025-825 SC_EVERSPLIT0022681  Hearing on Wildfires: A House Judiciary subcommittee will hold a hearing today on "California fires and the consequences of overregulation." Hearing Website House Passes Wildfire Bill: The House passed by a voice vote H.R. 836, an emergency wildfire technology bill. Senate Bills Advance: The Senate Environment and Public Works Committee advanced S. 347, which reauthorizes brownfields revitalization funding, and S. 351, which aims to improve recycling accessibility and related activities, on Wednesday by a voice vote. New House Energy Caucus: Reps. Chuck Fleischmann (R-Tenn.) and Marc Veasey (D-Texas) are launching and will co-chair the new bipartisan American Energy Dominance Caucus, they announced Wednesday. The group, which already has a dozen members, aims to encourage collaboration between the energy industry, the public and private sectors, and members of Congress around increasing domestic energy production and security. Fleischmann also chairs the Energy and Water Appropriations Subcommittee. Read the Release Editor's Picks Key Climate-Change Data Offline for Maintenance, US Says A key site that monitors global carbon-dioxide emissions went offline for maintenance and will return later Wednesday, according to the National Oceanic and Atmospheric Administration. Read More Trump Cuts Set to Hobble Agencies If Hard-to-Replace Staff Exit This week's takeover of USAID stoked concerns for the job security of skilled scientists, attorneys, and other experts across the government as President Donald Trump moves to shrink the federal workforce. Read More 20 OMBA401FY25609ALitigation_000000137 Sierra Club v. OMB, Case No. 25-cv- 05732-LJC OMB 2025-825 SC_EVERSPLIT0022682 Interior Faces Challenge to California Oil, Gas Drilling Permits Environmental and health organizations are challenging the Interior Department's continued approval of drilling permits for new oil and gas wells on public land in California's San Joaquin Valley, which already faces pollution from other sources. Read More EPA In-Person Attendance Averaged 18% Last Year, Data Shows An average of 18.4% of the EPA's workforce was physically present at the agency's Washington, D.C., headquarters in 2024, according to federal data reviewed by Bloomberg Law. Read More EPA Seeks Delay in Arguments Over Chemical Risk Evaluation Rule The EPA has asked a federal appeals court to postpone oral arguments about a fundamental chemical analysis regulation so new Trump administration officials can "decide what action, if any, is necessary." Read More Chevron Is in Contact With Trump Administration Over Venezuela Chevron Corp. is in communication with the Trump administration as some Republicans call for the US to revoke the company's license to operate in Venezuela. Read More Credit Agricole CEO Rules Out Quitting Climate Group Amid Exodus Credit Agricole SA Chief Executive Officer Philippe Brassac vowed to remain a member of the banking industry's largest climate-finance alliance, even after Wall Street's biggest lenders walked away. Read More 21 OMBA401FY25609ALitigation_000000137 Sierra Club v. OMB, Case No. 25-cv- 05732-LJC OMB 2025-825 SC_EVERSPLIT0022683 US Retreat Sparks New Push to Save $45 Billion Climate Deals Nations including Germany and Japan are working to shore up programs aimed at delivering about S45 billion to help developing countries abandon fossil fuels as the US pulls back from a leadership role. Read More View Online Finance Brief Thursday, February 6, 2025 INSIDE Happening on the Hill Editor's Picks More Rich Taxpayers Learn Their Data Was Stolen in Huge IRS Leak Another wave of taxpayers received letters from the IRS letting them know their data was stolen amid a historic breach by an agency contractor several years ago. The tax return information for almost 100,000 individuals and businesses was included in the data stolen by Charles Littlejohn, according to an email from Department of Justice attorney Jonathan Jacobson, which was released as part of Littlejohn's appeal of his sentence. The recent letters to taxpayers are labeled CP 118 and include no specific information about what was stolen. The format echoes letters sent last April, which also had few details, frustrating taxpayers. "There's definitely a lot of concern about what information has been seen," said Marissa Lenius, a senior manager of tax controversy at RSM US. Read More 22 OMBA401FY25609ALitigation_000000137 Sierra Club v. OMB, Case No. 25-cv- 05732-LJC OMB 2025-825 SC_EVERSPLIT0022684 Happening on the Hill Sen. Elizabeth Warren urged President Donald Trump to work with regulators to stop what she called unjustified closing of bank accounts held by citizens and businesses, arguing that efforts to mute the CFPB will worsen the problem. In a letter to Trump, Warren (D-Mass.) asked the new administration to support the bureau in its efforts to prevent so-called debanking. The Trump administration named Treasury's Scott Bessent as the acting head of the CFPB after firing director Rohit Chopra. Bessent has instructed CFPB staff to halt some activities. At a Senate Banking Committee hearing Wednesday, Anchorage Digital CEO Nathan McCauley testified that he had been the victim of debanking. McCauley said the bank told Anchorage in 2023 that it would be closing the firm's accounts because it was uncomfortable with Anchorage's crypto clients. Read More Also Read: FDIC Releases Documents That Probe Banks' Crvpto-Business Plans If Elon Musk's DOGE team improperly reviewed confidential taxpayer data, Bessent needs to make that known, House Ways and Means Committee Democrats wrote Wednesday. "It is both unclear and unsettling why DOGE would be privy to this sensitive payment system and confidential taxpayer information," the lawmakers wrote in a letter to Bessent. Read More The Senate Commerce Committee advanced Wall Street executive Howard Lutnick's nomination to lead the Commerce Department, paving the way for his confirmation in a 16-12 vote Wednesday. Read More More Hearings: Jamieson Greer's nomination to be US trade representative gets a Finance Committee hearing today. Hearing Website House Financial Services has a hearing scheduled for today on former President Joe Biden's crypto regulations. Hearing Website 23 OMBA401FY25609ALitigation_000000137 Sierra Club v. OMB, Case No. 25-cv- 05732-LJC OMB 2025-825 SC_EVERSPLIT0022685 Ix I Editor's Picks Federal Reserve Releases Wall Street Bank Stress-Test Plans The Federal Reserve released hypothetical scenarios for its annual stress tests, which seek to evaluate the resilience of big banks and ensure they can keep lending even in a severe recession. Read More Trennert of Strategas Picked by Trump Team for Treasury Post President Donald Trump intends to nominate Jason De Sena Trennert, co-founder and chief investment strategist of Strategas Securities, for a senior role at the Treasury, the department said in a statement Wednesday. Read More Tariffs to Fuel Market Volatility in 2025, JPMorgan Finds Global financial-market turbulence this week sparked by a series of US tariff announcements looks like just the beginning of a volatile year, according to a JPMorgan Chase & Co. electronic trading survey. Read More Fed's Barkin Says Officials Want Clarity on Policies, Growth Federal Reserve Bank of Richmond President Thomas Barkin joined a chorus of central bank officials who've said they need more time to understand where the US economy and inflation are headed amid elevated uncertainty about President Donald Trump's policies, strengthening expectations for rates to remain on hold. Read More 24 OMBA401FY25609ALitigation_000000137 Sierra Club v. OMB, Case No. 25-cv- 05732-LJC OMB 2025-825 SC_EVERSPLIT0022686 World Inflation at Risk of Rekindling With Trump's Trade War The more President Donald Trumpthreatens tariffs on the US's trading partners, the more the worry of another inflation wave troubles global economists. Read More EXCLUSIVE CFPB Takes Down Black History Month Posters After Trump Takeover The Consumer Financial Protection Bureau has removed Black History Month signs and taken other steps to conform with President Donald Trump's anti-DEI executive orders since Treasury Secretary Scott Bessent took over the agency. Read More Exiled From Goldman Sachs, a Fallen Star Finds His Next Act Andrea Vella is upfront: He's not going to talk about 1MDB and the scandal that ended his Wall Street career. Read More View Online Health Care Brief Thursday, February 6. 2025 Musk's DOGE Team Mines for Fraud at Medicare, Medicaid Elon Musk's government enforcers started wading into health territory. Mining for Medicare Fraud: After tearing through the federal agencies such as the Treasury Department and USAID, Musk's DOGE team has been on-site at the Centers for Medicare & Medicaid Services to mine key systems for examples of what they consider fraud or waste, according to a person familiar with the matter. The DOGE representatives gained access to payment and contracting systems, according to the person, who asked not to be named discussing internal matters. They have also been working to cancel diversity, equity, and inclusion-focused contracts at 25 OMBA401FY25609ALitigation_000000137 Sierra Club v. OMB, Case No. 25-cv- 05732-LJC OMB 2025-825 SC_EVERSPLIT0022687 CMS and more broadly across the Health and Human Services Department, the person said, including with organizations like Deloitte. Two "veteran" CMS employees are collaborating with DOGE, "including ensuring appropriate access to CMS systems and technology," the agency said Wednesday in a statement. But DOGE's actions are stirring up controversy among staffers, some of whom have tried to block DOGE representatives from accessing information, as well as lawsuits from unions that accuse agencies of illegally letting their members' information be shared with DOGE, Riley Griffin and Madison Muller report. Read More House E&C Chair Response: Rep. Brett Guthrie (R-Ky.) told reporters Thursday he recently learned of the DOGE's health agency investigation, but the Energy and Commerce chair hasn't followed up with what DOGE staffers were planning to do at the agency. "We need to look at efficiency for everything, and obviously everybody's private health information is private, but I think they need access to see where we can be more efficient and effective. There's a lot of money being spent by CMS," Guthrie said when asked if he had concerns about DOGE staffers having access to sensitive information. --Nancy Vu Today's Hearings Combatting existing and emerging illicit drug threats will be the focus of a House Energy and Commerce Health Subcommittee hearing today, which is the panel's first health hearing of the 119th Congress. Hearing Website I I 26 OMBA401FY25609ALitigation_000000137 Sierra Club v. OMB, Case No. 25-cv- 05732-LJC OMB 2025-825 SC_EVERSPLIT0022688 Trump Cuts Set to Hobble Agencies If Hardto-Replace Staff Exit The Trump administration's moves to gut USAID as part of a drive to shrink the federal workforce are raising fears about government-wide departures of the most experienced civil servants who monitor advances in science and technology. Staffers for USAID -- the government's most highly educated agency -- were unable to enter headquarters Monday. In addition, five of the agency's implementing partners recently furloughed more than 1,800 contracting staff, while others had their hours severely cut, according to an aid official who was granted anonymity to speak freely. USAID's looming shutdown is fueling concerns about the fate of skilled workers that other agencies including the FDA, the EPA, and the USPTO depend on for missions such as overseeing food, drugs, and medical devices; approving patent applications; and keeping the air and water clean. "They often are specialists in their field and they're hard to replace," said Howard Sklamberg, a former director of compliance at the FDA's Center for Drug Evaluation and Research. "Think of somebody evaluating a drug for kidney cancer -- a nephrologist -- who is an expert in kidneys. You can't replace that person with somebody off the street." Read More Also Read: Angry USAID Backers Turn on Democrats for Failing to Fight Back Editor's Picks Data Hoarders Are Rushing to Save Vanishing US Health Records Government agencies' moves to comply with President Donald Trump's executive orders, which affect everything from gender language to scientific publications, have sparked feverish efforts to archive government data in online repositories like the Internet Archive. Scientists and archivists say they're determined to preserve a historical record and guard against potential erasure or revision. Read More 27 OMBA401FY25609ALitigation_000000137 Sierra Club v. OMB, Case No. 25-cv- 05732-LJC OMB 2025-825 SC_EVERSPLIT0022689 Novo Nordisk Is Prepared for Trump's Tariff Threat, CEO Says Novo Nordisk A/S is prepared for potential tariffs from US President Donald Trump, the Danish drugmaker's chief executive said, as tensions simmer between Copenhagen and Washington. Read More UnitedHealth Raises Concerns With SEC Over Ackman Post on X UnitedHealth Group Inc. said it contacted the US Securities and Exchange Commission with concerns about investor Bill Ackman's since-deleted post on X suggesting that the company overstated profits. Read More Texas Lab Sues HHS Over 'Arbitrary' Genetic Testing Denial A Texas medical laboratory sued the US health department over allegations the agency arbitrarily denied reimbursement for genetic testing for neurological diseases. Read More El View Online Tax Brief By Kim Dixon i Thursday, February 6, 2025 Republican Senators Break With House Over Trump Agenda Strategy GOP lawmakers are still squabbling over how to advance the priorities of President Donald Trump, with the Senate now moving to delay action on the 2017 tax cuts and act first on border and immigration. The Senate plan spearheaded by Budget Chair Sen. Lindsey Graham (R-S.C.) calls for tens of billions in new spending for border and immigration enforcement. 28 OMBA401FY25609ALitigation_000000137 Sierra Club v. OMB, Case No. 25-cv- 05732-LJC OMB 2025-825 SC_EVERSPLIT0022690 Trump is due to meet today with with Republican lawmakers to discuss the budget resolution, the White House said in a notice posted early this morning. The public schedule didn't include a list of attendees. House lawmakers, including Ways and Means Chair Jason Smith (R-Mo.), have aggressively pushed a one-bill approach. House Speaker Mike Johnson (R-La.) said he'd discuss the dilemma with Senate Majority Leader John Thune (R-S.D.) Read More Some House lawmakers maintained that common ground on a single bill isn't far off. Rep. Chip Roy (R-Texas) told reporters that extending tax provisions over a five-year period was discussed at a marathon meeting Tuesday night as a possible way to keep costs down. A decade-long extension of the legislation carries a $4.6 trillion price tag. Roy and other debt hawks have maintained that any package must have deep spending cuts to reduce the growing national debt. He also sits on the House Budget Committee, which is responsible for initiating the reconciliation process. Budget Chair Jodey Arrington (R-Texas) deferred to Smith and House leadership on the number of years for any tax extension. "But there's certainly discussions by other members about it." Democrats Press Bessent Over Musk's Treasury Access Democrats on the House Ways and Means Committee are pressing Treasury Secretary Scott Bessent on whether Elon Musk's team's access to the Treasury Department's payments system jeopardizes taxpayers' personal information. The letter asks whether Musk's so-called Department of Government Efficiency team could disrupt the ongoing filing season. Lawmakers request the names of any individuals who sought confidential data. as well as info about the data and taxpayers potentially affected. "It is both unclear and unsettling why DOGE would be privy to this sensitive payment system and confidential taxpayer information," the lawmakers wrote in a letter to Bessent. "It is alarming that DOGE will decide whether and when hard-working American families will receive their tax refunds and may even pick and choose among them." Read More 29 OMBA401FY25609ALitigation_000000137 Sierra Club v. OMB, Case No. 25-cv- 05732-LJC OMB 2025-825 SC_EVERSPLIT0022691 Resignation Offer Exempts Many IRS Workers IRS workers who are deemed critical to tax filing season are exempt from the Trump administration's deferred resignation program until mid-May. Republicans have blasted the agency for years, attempting to pull back the tens of billions the IRS got in the 2022 tax-and-climate law. They have made some exceptions for workers that deal directly with helping their constituents. Read More More Wealthy Taxpayers Subject to IRS Contractor Leak More rich taxpayers got a wave of letters from the IRS alerting them that their data was leaked by a former agency contractor in the historic privacy breach several years back. It's the latest fallout from the case of Charles Littlejohn, who was sentenced to five years in prison for stealing the tax returns of Trump and Musk, among others, and sharing the information with several media outlets. (Michael Bloomberg was among those included in the reporting. Bloomberg is the majority owner of Bloomberg Government's parent company.) Nearly 100,000 individuals and businesses were among those whose data was stolen. according to an email from Department of Justice attorney Jonathan Jacobson released earlier this year as part of an appeal by Littlejohn. House Judiciary Committee Chair Jim Jordan (R-Ohio) is among the Republicans who have castigated the IRS and the Biden administration for taking the leaking too lightly. Read More 30 OMBA401FY25609ALitigation_000000137 Sierra Club v. OMB, Case No. 25-cv- 05732-LJC OMB 2025-825 SC_EVERSPLIT0022692 Happening on the Hill Push to Keep the Foreign-Derived Intangible Income Rate Permanent: Even as Republicans aim to push through an extension of the GOP's 2017 tax cuts without Democratic support, a bipartisan duo agrees on keeping one break from the law used by multinational companies. Reps. Randy Feenstra (R-Iowa) and Joe Morelle (D-N.Y.) reintroduced a bill seeking to maintain and make permanent the deduction on foreign-derived intangible income, or FDII. Without action by Congress, the deduction will be trimmed, boosting the rate from roughly 13.125% to 16.406%. The break is aimed at spurring companies to conduct research in the US, but opponents call it an invitation for companies to outsource. Sen. Sheldon Whitehouse (D-R.I.) and Rep. Lloyd Doggett (D-Texas) on Tuesday reintroduced the No Tax Breaks for Outsourcing Act, a bill that would eliminate the FDII deduction as well as curb other tax advantages on foreign income. Read More Tax Return Legislation Reintroduced: Sen. Todd Young (R-Ind.) is reintroducing legislation with Sen. Raphael Warnock (D-Ga.) that would require a code to be included on federal tax returns that are prepared electronically, but printed and filed on paper. The code, when scanned, converts the return data to an electronic format. The legislation was included as part of a tax administration discussion draft announced by Senate Finance Chair Mike Crapo (R-Idaho) and ranking member Ron Wyden (D-Ore.) earlier this month. Young's reintroduced bill mirrors the language in that bill. Tax-Advantaged Retirement Accounts Renewed: Backers of expanding taxadvantaged accounts for nonprofit workers reintroduced their legislation Wednesday. The bipartisan legislation would allow funds in a so-called 403(b) account, named for their section of the tax code, to be invested in collective investment trusts. It's a top priority of the retirement industry, even as some worry the measure will draw attention to employer-sponsored plans as lawmakers seek savings in their tax bill. Former Opportunity Zones Chief Heading to HUD: The Senate confirmed Scott Turner as secretary of Housing and Urban Development, giving the NFL veteran the chance to steer tax incentives for investments in underserved communities that he 31 OMBA401FY25609ALitigation_000000137 Sierra Club v. OMB, Case No. 25-cv- 05732-LJC OMB 2025-825 SC_EVERSPLIT0022693 helped implement as Trump's former executive director of the White House Opportunity and Revitalization Council. Those opportunity zones, created as part of the 2017 tax law, expire at the end of the year without congressional action. What Else We're Reading NY Transit Advocate Says Billions in Tax Hikes Would Fix MTA While New York's Metropolitan Transportation Authority needs state lawmakers to help fix a $35.4 billion hole in its multi-year capital spending plan, a rider advocacy group that advises the transit agency has some ideas on how to fill the gap, including raising taxes. Read More Carney Proposes Halt to Canada's Capital Gains Tax Increase Mark Carney will scrap a proposed increase to Canada's capital gains tax and introduce a tax cut for the middle class if he wins the Liberal Party leadership race and becomes prime minister, he said Wednesday. Read More View Online Tech Brief Thursday, February 6, 2025 Senators Advance Bill to Ban Children Under 13 From Social Media The Senate Commerce Committee approved a bill Wednesday that would ban children under the age of 13 from accessing social media platforms, Oma Seddiq reports. 32 OMBA401FY25609ALitigation_000000137 Sierra Club v. OMB, Case No. 25-cv- 05732-LJC OMB 2025-825 SC_EVERSPLIT0022694 The Kids Off Social Media Act, or KOSMA (S. 278), would also prohibit algorithmically driven content to teens under 17. It's the first legislative effort this Congress to protect children and teens online, following claims that social media companies are endangering young people and their mental well-being through excessive use and harmful targeted content. Sen. Ted Cruz (R-Texas) first unveiled KOSMA in the last Congress, but it didn't gain steam. Other online safety and privacy bills for children stalled last Congress after a mix of industry and digital rights groups voiced concerns about potential online censorship. With Cruz as Commerce chair, KOSMA's swift reintroduction and approval through committee injects fresh momentum into the issue but faces the same possible opposition from trade groups. The bill will head next to the Senate floor, and does not yet have a House companion bill. Read More Also Happening on the Hill: New Cars Must Keep AM Radio Under Bill Advanced by Senate Panel Trump Commerce Pick Howard Lutnick Moves Closer to Confirmation Editor's Picks Union Group Sues to Block DOGE Labor Department Data Access A coalition of unions and a worker advocacy organization are suing to block the Department of Government Efficiency from gaining entry to the US Labor Department's computer systems. Read More 33 OMBA401FY25609ALitigation_000000137 Sierra Club v. OMB, Case No. 25-cv- 05732-LJC OMB 2025-825 SC_EVERSPLIT0022695 EXCLUSIVE NY Bill Would Make Social Media Algorithms Optional for Users New York would become the first state to force social media platforms to allow all users to opt of algorithmically curated feeds under legislation to be announced Thursday. Read More The DeepSeek Competitors Vying to Be China's Next Al Champion The next DeepSeek to disrupt the global artificial intelligence industry could also come from China. Read More OpenAl Co-Founder John Schulman Leaves Rival Firm Anthropic John Schulman, a prominent artificial intelligence researcher who co-founded OpenAl, has left rival firm Anthropic, a job he held since the summer. Read More SoftBank Is Said to Near Deal for Chip Designer Ampere SoftBank Group Corp. is in advanced talks to acquire Ampere Computing LLC, people familiar with the matter said. Read More Google Ends Diversity Goals for Its Workforce in Trump Era Alphabet Inc.'s Google told employees that it will no longer formally seek to improve the diversity of its workforce, marking the latest step in Silicon Valley's retreat from initiatives that have fallen out of favor during US President Donald Trump's administration. Read Amazon, Alphabet Targeted in Oklahoma Anti-DEI Proposals Oklahoma is poised to become the first Republican state to try to use its influence as an investor to end DEI in corporate America, targeting companies including Amazon.com Inc. and Alphabet Inc. in shareholder proxy proposals. Read More 34 OMBA401FY25609ALitigation_000000137 Sierra Club v. OMB, Case No. 25-cv- 05732-LJC OMB 2025-825 SC_EVERSPLIT0022696 Ex-Googler Charged by US With Espionage to Boost Al in China A Chinese software engineer who worked for Alphabet Inc.'s Google faces new charges of economic espionage by the US Justice Department for allegedly stealing trade secrets to boost China's Al industry. Read More El View Online Transportation Brief Thursday, February 6, 2025 Musk's DOGE to Help `Upgrade' US Aviation System, Duffy Says Transportation Secretary Sean Duffy said he spoke with Elon Musk on Tuesday, as the DOGE team takes on the task of modernizing the US aviation system managed by the FAA. "We're going to rethink our airspace, and we're going to do it quickly," Duffy said during remarks at an event in Washington, without offering specifics about potential changes. In a separate post on X, Duffy said the DOGE team will "plug in to help upgrade our aviation system." ATC Surge: Duffy also said he'll announce a plan in the coming days to "surge" more air traffic controllers into the system. His announcement comes a week after the fatal crash that revived worries about the country's air traffic controller shortage and its airspace systems relying on aging technologies. He did not say whether DOGE was part of that plan. SpaceX Question: Musk chimed in with an X post of his own, saying DOGE plans to make "rapid safety upgrades" to the nation's air traffic control system. The move adds yet another federal agency to the portfolio of the organization run by the world's richest man. DOGE's involvement in managing US airspace will raise questions about Musk's conflicts of interest, since the FAA regulates his rocket company, SpaceX. Read More Also Read: White House Says Musk Will Police His Own Conflicts of Interest 35 OMBA401FY25609ALitigation_000000137 Sierra Club v. OMB, Case No. 25-cv- 05732-LJC OMB 2025-825 SC_EVERSPLIT0022697 Ix I Happening on the Hill Automakers would need to keep AM broadcast radio in new cars under bipartisan legislation advancing again in the Senate. The Senate Commerce Committee voted by voice on Wednesday to approve legislation (S. 315) that would direct the administration to require car manufacturers to install AM radio-capable devices in new passenger vehicles without additional charge. A House companion bill was reintroduced Wednesday afternoon. Read More The Senate committee also voted to advance a bill (S. 260) on Wednesday that would update guidance for the TSA on handling breast milk and breastfeeding supplies at airport screenings. Also Read: Trump Commerce Pick Howard Lutnick Moves Closer to Confirmation Editor's Picks Trump's Tariffs Spark `Race to the Border' With 30 Days to Spare Over a frantic 72 hours, President Donald Trump's threat of punishing new tariffs on Canada, Mexico and China sent stocks and currencies tumbling and shock waves through world trade. Read More 36 OMBA401FY25609ALitigation_000000137 Sierra Club v. OMB, Case No. 25-cv- 05732-LJC OMB 2025-825 SC_EVERSPLIT0022698 US Postal Service Reverses Decision to Halt China Shipments The US Postal Service said it's accepting "all international inbound mail and packages" from China and Hong Kong, walking back an announcement made only hours earlier to halt some overseas shipments. Read More Ford Sees Sharp Profit Drop as Trump Tariff, EV Threats Loom Ford Motor Co. warned that profit may fall by $2 billion or more this year on lower vehicle prices and costly new-model launches, adding to risks posed by potential steep new tariffs under President Donald Trump and dimming demand for plug-in cars. Read More Air Marshals Union Advances First Amendment Claim Against TSA A union that represents air marshals employed by the US Transportation Security Administration can move forward with its claim that government officials retaliated against members for union and whistleblower activity, a federal court said. Read More Uber Opens Waitlist for Waymo Rides in Austin Ahead of Launch Uber Technologies Inc. has set up a waitlist for customers interested in requesting a driverless Waymo vehicle in Austin, ahead of a planned launch later this year. Read More Japan Airlines, Delta Aircraft Touch on Ground in Washington, US A Japan Airlines aircraft hit the tail of a parked Delta Air Lines plane at around 10:17am local time while taxiing at Seattle-Tacoma International Airport in the US state of Washington, according to a post on the airport's official X account. Read More 37 OMBA401FY25609ALitigation_000000137 Sierra Club v. OMB, Case No. 25-cv- 05732-LJC OMB 2025-825 SC_EVERSPLIT0022699 Trump-Ishiba Summit Could Help US Steel Deal, Nippon Steel Says A Nippon Steel Corp. executive said he's hopeful that a meeting between Japanese Prime Minister Shigeru Ishiba and US President Donald Trump will advance the company's proposed $14.1 billion acquisition of United States Steel Corp. Read More nne C. Canfeld (b) (6) THE [-MAJORITY] GROUP 38 OMBA401FY25609ALitigation_000000137 Sierra Club v. OMB, Case No. 25-cv- 05732-LJC OMB 2025-825 SC_EVERSPLIT0022700