Principals

1. Schumer sees 2027 majority
2. Durbin retires
3. Ken Griffin rips Trump
4. Lucas on Fed reform
5. Boycotting El Salvador
6. Gallego backs Trump proposal
7. Trump’s counterterrorism plan
8. FTC chair on Trump censorship

PDB: Russia strikes Kyiv

Trump to meet Norway’s prime minister … Day 2 of Semafor’s World Economy Summit ... Hang Seng index ⬇️ 0.74%

What Schumer told us at WES

Tariffs, tax cuts and SignalGate have Chuck Schumer seeing a ray of light: “We are going to be in the majority in 2027,” he said at Semafor’s World Economy Summit. That will be a tough task: Democrats need to pick up four seats and defend competitive ones to make Schumer the majority leader again. But his optimism is unbridled: “Why are Democrats so unified and Republicans in such disarray?” Just a month ago, Schumer took flak for advancing a government funding bill and sparked talk of a primary challenge from progressive Rep. Alexandria Ocasio-Cortez. “Polls always come and go, I’m focused on making sure the people of New York and the people of America know how bad [President Donald] Trump is, and I have found throughout my career, you do your job and everything works out just fine,” he said.

Durbin retirement reshapes Senate

Sen. Dick Durbin’s retirement announcement isn’t exactly a surprise, yet there are nonetheless massive ramifications for the Senate. And Sen. Brian Schatz, D-Hawaii, Durbin’s chief deputy whip, is already making calls about the soon-to-be vacant position, Semafor’s Burgess Everett reports. Few lawmakers have accrued more internal power over their career than Durbin: He’s the longest-serving Senate whip ever, the top Democrat on the Judiciary Committee and the second-most senior Democrat on the Appropriations Committee. That means in addition to a new senator from Illinois — Lt. Gov. Juliana Stratton just launched a campaign this morning, and Reps. Raja Krishnamoorthi, Lauren Underwood and Robin Kelly are likely to be eyeing their own — there will be big changes at the top rungs of the Democratic caucus. And with Durbin not running, Sen. Sheldon Whitehouse, D-R.I., will finally get his chance to lead the Judiciary Democrats.

Citadel chief: Trump has made US poorer

Citadel CEO Ken Griffin — a major Republican Party donor — isn’t mincing words in his criticism of Trump, a sign of the lingering anxiety on Wall Street over the president’s unpredictable tariff policy. Griffin criticized Trump for alienating allies and tarnishing what he described as the previously sterling reputation of US assets. Trump’s tactics have “eroded” the reputation of US Treasurys and the US dollar, he said at the World Economy Summit. “It can be a lifetime to repair the damage that has been done,” Griffin warned. He described the trade war as “nonsensical” and said businesses who hoped to focus on growth are now having to assess their supply chains. Despite those comments, Griffin, who voted for Trump in the last election, assessed his term thus far as “mixed.”

Republican maps next steps on Fed

Rep. Frank Lucas, R-Okla., said at the World Economy Summit that lawmakers will explore bipartisan legislation reforming the Federal Reserve plus potential changes affecting Treasury markets in the wake of market volatility caused by Trump’s policies. The former would provide Republicans an opportunity to “make corrections” to the Fed’s supervisory functions, Lucas said, while simultaneously “reinforcing the Fed’s independence.” Stocks were up Wednesday as investors grew less concerned over Trump’s offensives against the Fed and China. Council of Economic Advisers Chair Stephen Miran said at Semafor’s summit that he is “optimistic that we will have a deal with China” and “take the temperature down a bit,” amid reports of the White House making plans to pull back on the tariffs. “The president makes adjustments, and sometimes — whether you’re the executive branch or the legislative branch — the markets will drive that,” Lucas said.

— Eleanor Mueller

Dems push for El Salvador boycott

Democrats are trying a new strategy to push back against El Salvador for cooperating with the Trump administration on deportations: Boycott the Central American country. Illinois Gov. JB Pritzker announced that his state would review government contracts and investments with businesses in El Salvador as well as trade with the country, paving the way for a potential boycott. At the World Economy Summit, Sen. Chris Van Hollen, D-Md., also suggested Americans “vote with their feet” and recommended Costa Rica as an alternate destination. Democrats have struggled with how to respond to Trump’s unsanctioned deportation of Maryland resident Kilmar Ábrego García to El Salvador, as the administration resists a judge’s order to “facilitate” his return to the US. “I think economic pressure works,” California Rep. Robert Garcia told Semafor after his own trip to the country.

Gallego pitches Trump on housing

Sen. Ruben Gallego, D-Ariz., endorsed a Trump administration initiative meant to use federal lands as a way to address the country’s housing crisis. Gallego sent a letter, first viewed by Semafor, applauding the administration’s new Joint Task Force on Federal Land for Housing, formed to identify lands for development and pinpoint areas with the most pressing housing needs. “I definitely want to work on it,” he told Semafor. The freshman senator also requested details on how the administration plans to engage with private developers and affected communities. He’s also interested in whether transportation, school, and employment will factor into determining which lands are considered. “What I don’t want to see is us selling plots of land in some of the most beautiful national forests and parks just so some rich guy can get a 50-acre ranch,” he said.

— Kadia Goba

Gorka teases Trump counterterrorism plan

Sebastian Gorka, Trump’s senior director for counterterrorism, told Semafor he’s in “the final stages” of drafting the administration’s national security policy for both domestic and foreign terrorism. Gorka said at the World Economy Summit he expects the new plan will be ready in a month, and that it would define attacks on Tesla locations as domestic terrorism. Acts of terrorism will include anything from “trying to kill human beings” to “using a Molotov cocktail against a car dealership because you disagree with the founder politically.” Gorka also drew a firmer line on the Ukraine war than Trump, saying emphatically that “Ukraine was invaded” by Russia. Still, he maintained that Trump’s approach to ending the war is working. He made the comments as Trump ratchets up pressure on Ukrainian President Volodymyr Zelenskyy to agree to a peace deal. “The meat grinder has to stop,” Gorka said of the war.

— Shelby Talcott

FTC may look into censorship of Trump

Federal Trade Commission Chair Andrew Ferguson is opening the door to further action against social media companies that he said may have colluded on Trump’s removal from their platforms as he challenged his 2020 election loss. Ferguson said at the World Economy Summit that he has no position on whether collusion occurred, but “there are a couple of areas involving market power and censorship that give me real concern.” While The Wall Street Journal editorial board recently likened his anti-price-fixing warning to his progressive predecessor Lina Khan, Ferguson said the two “very rarely” speak and he underscored their differences. Ferguson also said he’s “very confident” about the FTC’s chances in its blockbuster antitrust suit against Meta. And he addressed the FTC’s suit this week against Uber, saying he’s not “on a crusade” about subscription pricing but just seeking to “help consumers where they are.”

— Elana Schor

Blindspot: Sanctions and charity

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 Trump administration imposed sanctions on an Iranian liquefied petroleum gas magnate and his network.

What the Right isn’t reading: Gov. Ron DeSantis’ administration steered millions in Medicaid funds to a charity with ties to his wife, Casey DeSantis, the Miami Herald reported.

Beltway Newsletters

Playbook: “Did Putin write this for him?” one NATO official said of President Trump’s Ukraine peace plan proposal.

WaPo: DNC Vice Chair David Hogg said he’s made a list of Democratic lawmakers he wants to oust with primary challenges, as he looks to shake up the party.

Axios: Art Laffer, the father of supply-side economics, warns that tariffs and trade barriers will lead to downturns. “Once you screw around with supply chains, production facilities, all of that, it’s very hard to reverse that,” he said.

White House

• President Trump invited his meme-coin investors to dinner.
• Elon Musk and Treasury Secretary Scott Bessent got into a loud shouting match over the next IRS commissioner during a White House meeting. — Axios

Congress

• Rep. Rick Allen, R-Ga., plans to reintroduce his bill that would block retirement plans from weighing environmental and social governance factors when making investments during the House’s pro forma session today, Semafor’s Eleanor Mueller scoops, ahead of a House Education and Workforce Committee hearing next week.
• Rep. Jan Schakowsky, D-Ill., is planning to retire. — Politico
• The late Rep. Raul Grijalva’s daughter is using her dad’s email list in her bid to replace him in Arizona’s 7th congressional district.

Executive orders

• On Wednesday night, President Trump signed an order telling Attorney General Pam Bondi and the Equal Employment Opportunity Commission to seek the repeal of all federal regulations stemming from the implementation of the Civil Rights Act that involve “disparate-impact liability.”
• Trump signed an order to revamp the college accreditation process, which determines which schools can get federal student funding like Pell grants. — WSJ

Outside the Beltway

• Vice President JD Vance’s brother, Cory Bowman, is running for mayor of Cincinnati.

Economy

• President Trump decided against trying to oust Federal Reserve Chairman Jerome Powell after Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick cautioned him “that such a move could trigger far-reaching market chaos and a messy legal fight.” — WSJ
• The Interior Department announced a plan to fast-track coal, gas and mineral extraction projects on public lands, condensing months- or years-long environmental reviews into a matter of weeks.

Courts

• A dozen states sued the Trump administration over its tariffs, calling the justification for the levies unlawful.
• The Trump administration has remade the Justice Department’s civil rights enforcement arm. — NBC

National Security

• Defense Secretary Pete Hegseth asked for Signal to be installed on his desktop computer at the Pentagon. — WaPo

Polls

• President Trump’s approval rating on immigration policy dropped below 50%, according to a new Economist/YouGov poll.

Foreign Policy

• Ukrainian President Volodymyr Zelenskyy cut short a trip to South Africa after Russia targeted Kyiv in its deadliest attack on the Ukrainian capital since last July.
• India closed its primary border crossing with Pakistan after a gunman killed 26 people in Kashmir. Pakistani officials have denied any role in the attack.
• Secretary of State Marco Rubio told The Free Press’ Bari Weiss that the White House will demand Iran give up all nuclear enrichment capabilities if it wants a deal with the US.

Technology

• The founder and CEO of Discord is stepping down. — VentureBeat

Media

• The Dispatch bought SCOTUSblog.

Principals Team

Edited by Morgan Chalfant, deputy Washington editor

With help from Elana Schor, senior Washington editor

And Graph Massara, copy editor

Contact our reporters:

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

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