1/ House Speaker Mike Johnson lacks the Republican support needed to pass the party’s budget ahead of today’s a planned vote. With a 218-215 majority, he can afford only one defection if all Democrats vote no, but at least four Republicans have already pledged to oppose the measure. Johnson, meanwhile, asked conservatives to pray for the budget, saying “This is a prayer request. Just pray this through for us, because it is very high stakes.” Johnson said he plans to call a vote Tuesday at 6 p.m. ET, but also said: “There may be a vote tonight, there may not. Stay tuned.” The budget framework includes $4.5 trillion in tax cuts and $2 trillion in spending reductions, which would add roughly $3 trillion to the deficit over a decade. It also calls for raising the debt limit by $4 trillion and includes over $100 billion in new spending on immigration enforcement and the military. To offset some of the tax cuts, the plan requires the House Energy and Commerce Committee to find $880 billion in savings, with Medicaid – the nation’s largest health insurance program – expected to provide the bulk of those cuts. Medicaid covers over 70 million people and serves as the largest source of funding for states, raising concerns that states may have to either cut coverage, raise taxes, or reduce spending on other programs to compensate for the loss of federal support. (New York Times / Politico / NBC News / Axios / Washington Post / Associated Press / Wall Street Journal)
- poll/ 71% of Trump voters oppose cutting Medicaid, despite House Republicans advancing a budget resolution that could require $880 billion in spending cuts. Overall, 82% of voters said Medicaid cuts were unacceptable. (The Hill)
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2/ Twenty-one federal technology staffers resigned from Elon Musk’s Department of Government Efficiency, citing concerns over dismantling public services. The employees, formerly part of the U.S. Digital Service, said they would “not use our skills as technologists to compromise core government systems, jeopardize Americans’ sensitive data, or dismantle critical public services.” Their resignation letter warned that Musk’s efforts to shrink the federal workforce relied on inexperienced political appointees and posed security risks. The White House dismissed the resignations, with press secretary Karoline Leavitt saying “Anyone who thinks protests, lawsuits, and lawfare will deter President Trump must have been sleeping under a rock.” (Associated Press / New York Times / NPR / CNN)
3/ Nearly 40% of federal contracts canceled under Elon Musk’s Department of Government Efficiency are expected to yield no savings, according to the administration’s own data. Of the 2,300 contracts terminated, 794 had already been fully paid or legally obligated, making the cuts largely symbolic. Meanwhile, DOGE deleted its five largest reported cost savings after media outlets exposed major errors in its claims. The agency initially claimed an $8 billion cut at ICE, which was actually $8 million, and mistakenly listed a single $655 million USAID cut three times. It also misreported a $232 million Social Security cut, which was only $560,000. Despite removing these errors, DOGE now claims it has saved $65 billion, without explaining the discrepancies. Further, some newly added savings also appear inaccurate, including a $1.9 billion Treasury cut that predates DOGE’s existence. (Associated Press / New York Times)
4/ Trump confirmed that tariffs on Canada and Mexico will take effect next month, ending a 30-day suspension. The tariffs include a 25% tax on Mexican imports and a 10% duty on Canadian energy products, with Trump claiming they are necessary to address trade imbalances and border security. Mexican President Claudia Sheinbaum expressed confidence in reaching an agreement before the deadline, while Canadian officials have warned of potential economic fallout. Economists say the tariffs could worsen inflation and slow economic growth, with potential retaliatory measures from Canada, Mexico, and Europe. Trump also reiterated his plans for broader “reciprocal” tariffs starting in April. (CNBC / Associated Press)
5/ Consumer confidence declined in February as concerns about inflation and new tariffs grow. The Conference Board’s index fell to 98.3, the largest monthly drop since 2021, with inflation expectations rising to 6% over the next year. The cost of essential goods, including eggs, increased, and uncertainty over trade policies contributed to a more cautious outlook on jobs and income. The Federal Reserve is monitoring inflation expectations, but has not signaled any immediate policy changes. (NPR / New York Times / ABC News / NBC News / CNN / Bloomberg)
The midterm elections are in 616 days.