Good evening. We've got breaking news on the DHS shutdown.
Trump Says He Will Sign Emergency Order to Pay TSA Agents
President Trump announced in a social media post Thursday evening that he will sign an executive order directing newly installed Homeland Security Secretary Markwayne Mullin to "immediately pay" Transportation Security Administration agents "and to quickly stop the Democrat Chaos at the Airports."
"Because the Democrats have recklessly created a true National Crisis, I am using my authorities under the Law to protect our Great Country, as I always will do!" Trump wrote.
The announcement came after senators spent much of Thursday scrambling to land a deal to fund TSA and other parts of the Department of Homeland Security. Senate Republicans presented Democrats with what Majority Leader John Thune called their "last and final" offer to end the partial DHS shutdown. With anxiety mounting over the continuing disruptions at the nation's airports - and with lawmakers feeling increased pressure and also eager to head home for their holiday recess - negotiators expressed some renewed optimism that an agreement could still be reached.
Still, Republican lawmakers also urged Trump to declare a national emergency and take executive action to shift unspent federal funds toward paychecks for TSA agents, an option that would also increase pressure on Democratic negotiators.
Thune told reporters that the latest Republican offer did not include additional immigration enforcement reforms sought by Democrats but did address "some language requests" that Democrats had made. "At some point, they got to take yes for an answer," Thune said.
Democrats reportedly were seeking to ensure that Customs and Border Protection agents would not be tasked with immigration enforcement duties if that agency got funded as part of a deal.
As the two sides tried to bridge their lingering differences, a procedural vote on a DHS funding bill remained open on the Senate floor for hours, even though all senators had voted - a sign that negotiations were continuing. House leaders reportedly also warned their members that weekend votes on a Senate deal may be possible, though House Speaker Mike Johnson would not commit to holding a vote on legislation like that proposed by his Senate Republican counterparts. (The House also voted for a third time to fund DHS through September, though the 218-206 vote was largely a messaging exercise given the impasse in the Senate.)
The talks apparently fizzled, though - at least from the GOP's point of view. "We've held the vote open for 5 hours to give the Democrats an opportunity to come to the table. They have not. And now, time is up," Republican Sen. John Barrasso said.
Before Trump made his announcement, White House Press Secretary Karoline Leavitt confirmed to reporters that executive action was under consideration. In a statement, she said that "it is true the White House is having discussions about a number of ideas to blunt the impact of the Democrat shutdown crisis, but no preparations or plans are currently underway. The best and easiest way to pay TSA Agents is to fund DHS."
During a Cabinet meeting earlier in the day, Trump again blamed Democrats for the shutdown and signaled that his move was coming. "They need to end the shutdown immediately, or we'll have to take some very drastic measures," he said.
The bottom line: There will be questions about the legality of Trump's executive action. But with the DHS shutdown now in its 41st day, the White House and senators were faced with the deadline pressure of Congress's planned holiday recess and the heightened urgency to address worsening airport delays as millions of Americans prepare to travel for spring break.
Iran War Will Push Inflation Above 4%, OECD Warns
The war against Iran will drive the U.S. inflation rate up to an estimated 4.2% this year, according to new projections by the Organization for Economic Cooperation and Development.
In its latest forecast, OECD said the conflict in the Middle East will "test the resilience of the global economy" as it generates a surge in energy costs that ripples throughout the global commodity chain. Inflation rates are projected to rise in most OECD nations, with the average across the G20 countries hitting 4.0%, more than a percentage point higher than projected at the end of 2025.
In the U.S., the projected headline inflation rate of 4.2% in 2026 is 1.2 percentage points higher than estimated just four months ago. On the flip side, inflation is projected to fall sharply in 2027, dropping to 1.6%, well below the Federal Reserve's 2% target. However, core inflation, which ignores volatile fuel and food prices, will remain above target, coming in at 2.8% this year and 2.4% in 2027.
"The breadth and duration of the conflict are very uncertain, but a prolonged period of higher energy prices will add markedly to business costs and raise consumer price inflation, with adverse consequences for growth," the OECD analysts wrote.
Before the war, global economic growth was "resilient," driven by investments in artificial intelligence and supported by favorable financial and fiscal conditions. Bilateral tariff rates had fallen following the Supreme Court's ruling against some of President Trump's tariffs, easing the flow of global commerce. But the surge in energy prices will offset some of the tailwinds that pushed the economy forward last year. The U.S. economy is projected to grow at a 2% rate in 2026 before easing to 1.7% next year.
There is also a "significant downside risk" that the war could last longer than expected, further boosting energy prices and overall inflation while weighing more heavily on growth. In such a scenario, financial markets would get repriced as demand weakens around the world.
Trump Shifts $1.25 Billion in State Department Funds to His Board of Peace
The Trump administration has redirected $1.25 billion from the State Department to President Trump's Board of Peace, according to a report in Semafor Thursday. The money was intended to fund disaster relief and peacekeeping operations but is now being used to help fulfill Trump's pledge to provide more than $1 billion for the board.
According to Semafor's Eleanor Mueller, the Trump administration moved $1 billion from international disaster assistance at the State Department to the Board of Peace. Another $200 million was shifted from peacekeeping, and $50 million from international programs.
Trump established the Board of Peace by executive order earlier this year as a vehicle to oversee the planned reconstruction of Gaza, though the mission has expanded to embrace the general promotion of peace in areas marked by conflict. Trump named himself as chairman of the "public international organization," which nations can join permanently after paying a $1 billion initiation fee.
Trump said last month that ultimately, he wants the U.S. to give $10 billion to the organization, which he described as "the Greatest and Most Prestigious Board ever assembled at any time, any place."
Some members of Congress, though, may not be so impressed. On Thursday, Democratic Sen. Catherine Cortez Masto introduced a bill that would redirect $1 billion from Trump's Board of Peace to the Low-Income Home Energy Assistance Program.
"Instead of giving President Trump a $1 billion blank check to fund a 'Board of Peace' that has offered no transparency about how it is investing its money, let's focus on helping American families afford their monthly power bill," Cortez Masto said in a press release.
Cortez Masto noted that Trump has shifted federal funds without consulting Congress, which maintains the power of the purse.
"So far, the Trump Administration has presented no credible plan for how the money will be spent, has not been reported to have actually transferred funds directly to Gaza despite its pledge, and has effectively created a 'slush fund' for President Trump that experts agree will do little to support humanitarian or peace efforts globally," she said.
Number of the Day: 1,270
Of the nation's 3,144 counties, 1,270 - or just over 40% - saw their population shrink in the year ending July 1, 2025, according to data released Thursday by the Census Bureau. Also, of the 2,066 counties that grew between 2023 and 2024, nearly eight in 10 saw that growth slow or reverse direction in 2025, the Census Bureau said, adding that in many cases, counties already in decline saw losses accelerate.
The shrinkage reflects a sharp slowdown in international immigration and the effects of President Trump's immigration crackdown. Every state and 90% of the nation's counties saw a decline in net international migration between 2024 and 2025, according to the new data.
"Some of the steepest numerical declines were in counties that include major cities with large immigrant populations, like Los Angeles, San Diego, Miami, Dallas and New York," Bloomberg News reports. "Census officials expect migration to fall to about 321,000 in the year to July 2026 and said earlier this year that the US is 'trending toward negative migration' for the first time in more than 50 years."
Quote of the Day
"In honor of the 250th anniversary of the United States of America, President Donald J. Trump's signature will appear on future U.S. paper currency along with the Secretary of the Treasury, marking the first time in history for a sitting president."
− A Treasury Department news release Thursday.
"There is no more powerful way to recognize the historic achievements of our great country and President Donald J. Trump than U.S dollar bills bearing his name, and it is only appropriate that this historic currency be issued at the Semiquincentennial," Treasury Secretary Scott Bessent said in the release.
Fiscal News Roundup
- Trump to Sidestep Congress, Pay TSA Workers – Axios
- Trump Extends Iran Talks Deadline After Sell-Off on Wall Street – Financial Times
- Trump Tells Aides He Wants Speedy End to Iran War – Wall Street Journal
- Pentagon Mulling Diverting Ukraine Defense Aid to the Middle East: Report – The Hill
- Trump Questions If Iran Deal Possible, Roiling Energy Markets – Bloomberg
- Trump Team Examines What Oil as High as $200 a Barrel Would Mean – Bloomberg
- House Republicans Huddle With Johnson to Plot Party-Line Package – Politico
- Brian Fitzpatrick Delivers a Warning on GOP Reconciliation Redo – Politico
- House Committee Advances Bipartisan Tax Bills – Checkpoint News
- Immigration Slowdown Hits Every Metro Area in the U.S., Census Shows – New York Times
- Fox News Poll Gives Trump Highest Disapproval Rating Across Both His Terms – Washington Examiner
- State Department Sends $1.25B From Other Programs to Board of Peace – Semafor
- Kennedy Center Begins Layoffs as Trump-Directed Shutdown Looms – Politico
- More Budget Pain Is in Store for Mamdani – Politico
- US House Speaker Gives Trump So-Called 'America First' Award Amid Global Chaos – USA Today
Views and Analysis
- 5 Takeaways From Trump's Cabinet Meeting as Iran War Rages – Julia Manchester and Mallory Wilson, The Hill
- The Narrow Path to a U.S.‑Iran Deal – Laurence Norman, Wall Street Journal
- Energy-Price Shock Hits a World Already Buried in Debt – Chelsey Dulaney, Wall Street Journal
- Trump Is Baffled That Iran Won't End the War He Started – Stephen Collinson, CNN
- How Can America Be So Miserable When It's So Rich? – David French, New York Times
- More States Are Taxing the Ultra-Rich - Washington Is the Latest – Mark Kreidler, American Prospect