Principals

1. Economy under Trump
2. CEO optimism fades
3. Short-term funding plans
4. Zelenskyy meets Trump
5. Drastic foreign aid cuts
6. Semafor interviews FCC chair
7. McCarthy goes nuclear

PDB: What Musk told senators

More inflation data coming … Vance to address National Prayer Breakfast … China vows response to tariffs

GOP lawmakers prepare for economic pain

With President Trump threatening to impose tariffs on Canada and Mexico as soon as next week, some GOP lawmakers are bracing for the impact Trump’s policies could have on their constituents’ bank accounts, Semafor’s team reports. The White House has so far been blaming the Biden administration for problems like inflation, but there’s more political risk the longer Republicans are in power. Sen. Thom Tillis, R-N.C., one of the country’s most vulnerable Republicans, warned that his party will need to carefully manage Trump’s proposed tariffs, along with preventing tax increases; otherwise, it could “end up being a very, very difficult cycle for us.”

US business leaders turn on Trump

The White House defended its economic agenda as Trump’s tariff threats spike the nerves of American CEOs. Executives are nervous about Trump prioritizing trade restrictions without giving the same attention to business-friendly deregulation that he talked up in the campaign trail, Semafor’s Liz Hoffman and Rohan Goswami report. Consumer confidence is plummeting, and the US stock market is lower than it was before his inauguration. “The chaos that is reigning right now is causing everyone to sit on their hands,” Nasdaq Private Market CEO Tom Callahan told Semafor. White House spokesman Harrison Fields insisted Trump is offering a better environment for businesses than the Biden administration. “There isn’t a serious CEO in America who would prefer the disastrous, negative-growth policies of the previous administration over the pro-growth, low-tax, and low-regulation policies of President Trump,” he said.

Senate spending leaders ask for more time

The Senate’s two leading appropriators don’t want a yearlong continuing resolution — but they do want to buy themselves more time to finish a bipartisan deal. Senate Appropriations Chair Susan Collins, R-Maine, and ranking member Patty Murray, D-Wash., both said they still think they can get a funding agreement that would avoid sending the government into spending autopilot through September. “I believe we can get a deal. We’ll need a short-term CR to complete it,” Murray told Semafor. “That’s what I want also. That is my preferred approach,” Collins added. She met with Senate Majority Leader John Thune and Speaker Mike Johnson this week, but they have other ideas: namely, a punt into the fall (Trump endorsed a stopgap to the end of September). Collins said she’s “very concerned about the implications of a yearlong CR, particularly for the Defense Department,” which could suffer blunt budget cuts.

— Burgess Everett

Zelenskyy makes his case to Trump

Ukrainian President Volodymyr Zelenskyy is set to try to convince Trump that the US should play a role in securing his country after its war with Russia ends. Trump struck a more positive note on Ukraine on Thursday, expressing respect for Zelenskyy and questioning whether he really did call the Ukrainian president a “dictator” last week. The two are expected to sign a deal to give the US access to Ukraine’s critical minerals, about whether he’ll agree to a European peacekeeping plan that would involve a US “backstop” in Ukraine or to Zelenskyy’s plea for security guarantees. Zelenskyy will also be looking for clues about the US’ talks with Russia over ending the conflict. After meeting Trump, Zelenskyy will take his message to another conservative audience with a planned appearance at the Hudson Institute.

Global health funding takes new hits

Programs initially identified by the State Department as life-saving were terminated Thursday as part of the Trump administration’s move to cut more than 10,000 foreign aid contracts. The new cutbacks, which have devastated the aid sector, include parts of USAID’s largest contract — a $9.5 billion global health supply chain initiative. Chemonics, the company implementing the initiative, has not yet received a termination notice for the portion of the project that supports HIV/AIDS treatment, a person familiar with USAID’s programs told Semafor. Other contracts for tuberculosis, malaria, and HIV treatment have been canceled, and over 1,000 emergency food kitchens in famine-stricken Sudan have been forced to shut down. Sen. Chris Coons, D-Del., said a dozen nonprofits in the sector have said “they were genuinely surprised” at the cancellation of contracts with waivers.

— Mathias Hammer and Morgan Chalfant

Highlights from Semafor’s media summit

FCC Chairman Brendan Carr defended his agency’s probes into networks like CBS and NPR, arguing he’s enforcing Congress’ requirement that outlets that use public airwaves serve the “public interest.” During an interview at Semafor’s Innovating to Restore Trust in News Summit on Thursday, he noted that traditional broadcasters and outlets not regulated by the FCC, like podcasters, have “very asymmetrical regulatory obligations,” even though they’re competing for audiences — but said it would be up to Congress, not him, to “level the playing field.” Earlier in the summit, Fox News anchor Bret Baier said he was worried about the White House’s tightening control of the White House press corps. And New York Times Executive Editor Joe Kahn predicted it could take “40 or 50 years” for the media to regain US media consumers’ trust, which is now at an all-time low.

Kevin McCarthy pushes nuclear power

Kevin McCarthy is urging his former colleagues to incorporate nuclear energy policy into a sprawling energy package Republicans intend to move through budget reconciliation. In his new role as chairman of the ALFA Institute, the former House speaker released a blueprint, first shared with Semafor, to accelerate nuclear energy production by reforming the permitting process and giving tax credits to certain energy providers. “America’s future — from AI to manufacturing — depends on generating more power,” McCarthy said in a statement. “With the incredible advancements in nuclear energy, Congress has the opportunity to unleash a new era of American exceptionalism.” Nuclear energy supplied around 19% of electricity generated in the US as of 2023. The industry is looking to double nuclear output over the next three decades, in part to meet the increasing energy demand of artificial intelligence.

— Kadia Goba

The 97th Academy Awards are this weekend, giving us a glimpse into the past and future of Hollywood and the entertainment industry. For an insider’s take on the state of the business and how the Academy works, Ben and Max bring on Matt Belloni, founding partner of Puck and host of the podcast The Town. They talk about Netflix’s Oscars strategy with Emilia Pérez, the disconnect between the Academy’s interests and what happens on stage, whether Hollywood will take a rightward turn, and why the Oscars still matter in 2025. Matt also talks about his own career arc, from working behind-the-scenes at the Hollywood Reporter to being recognized for his voice, plus his predictions for this weekend’s awards.

Blindspot: Methane and meetings

Stories that are being largely ignored by either left-leaning or right-leaning outlets, curated with help from our partners at Ground News.

What the Left isn’t reading: The House voted this week to overturn a Biden-era rule implementing a charge for excess methane emissions, with support from most Republicans and a handful of Democrats.

What the Right isn’t reading: The leader of Canada’s New Democratic Party, Jagmeet Singh, said President Trump should be disinvited from an upcoming G7 meeting.

Beltway Newsletters

Punchbowl News: The Democratic group House Majority Forward is going up with a new national cable ad next week criticizing Republicans for threatening Medicaid.

Playbook: A former congressional aide to Rep. Victoria Spartz, R-Ind., accused her of ordering her official staff to work a campaign event.

WaPo: The president of the Committee for a Responsible Federal Budget predicted that a government shutdown is “relatively likely” next month.

Axios: Vice President Vance will give a keynote address at the Andreessen Horowitz-organized American Dynamism Summit in DC next month, underscoring the administration’s focus on AI.

White House

• President Trump pledged to impose an additional 10% tariff on China and to move forward with duties on Canada and Mexico on Mar. 4.
• The New York Times identified 45 people working for the Elon Musk-led Department of Government Efficiency.

Congress

• Sen. Elissa Slotkin, D-Mich., will deliver the Democratic rebuttal to President Trump’s address to a joint session of Congress next Tuesday.
• Three Democrats backed Trump’s labor secretary pick, Lori Chavez-DeRemer, in a vote to advance her out of committee.
• Elon Musk on Thursday briefed the Senate’s DOGE Caucus on his organization’s work after a month of moves to dismantle some government agencies, lay off workers and slash costs, Semafor’s Burgess Everett reported.

Outside the Beltway

• Iowa’s Republican-controlled legislature approved a bill to remove civil rights protections for transgender individuals.

Polls

• Six in 10 US adults believe that the Trump administration’s tariffs will lead to higher prices, according to a new poll conducted for Bloomberg.

Courts

• A judge ruled that a DOGE representative must testify under oath about the office’s structure, while another halted the Trump administration’s mass firings of federal workers.
• The FBI questioned EPA employees over a Biden-era climate grant program. — WaPo
• The Justice Department released its files on Jeffrey Epstein.

National Security

• The White House is “embroiled in a debate over whether to carry out military strikes against Mexican drug cartels or instead to collaborate with Mexican authorities to jointly dismantle criminal organizations.” — NYT
• Five former defense secretaries criticized President Trump for “recent dismissals” of senior military leaders. — WaPo

Foreign Policy

• Mexico extradited a drug boss to the US wanted in the 1985 killing of a DEA agent, in addition to other cartel operatives.
• Some Republican senators, including Lindsey Graham, have pressed Secretary of State Marco Rubio privately on the legality of Trump’s foreign aid freeze. — WaPo

Media

• Evan Gershkovich’s memoir will be adapted to film.
• Megyn Kelly mocked Jeff Bezos and doubled down on her criticism of MSNBC’s Rachel Maddow during Semafor’s Innovating to Restore Trust in News Summit.

Principals Team

Edited by Morgan Chalfant, deputy Washington editor

With help from Elana Schor, senior Washington editor

Contact our reporters:

Burgess Everett, Kadia Goba, Eleanor Mueller, Shelby Talcott, David Weigel

Jeff Van Drew is a Republican congressman from New Jersey.