Understanding The USAID Crisis

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In Today’s Brief

• Utah: Hiker death

• Bibi: Visiting Trump

• Gabbard: Committee vote

• State Farm: California crisis

• MLB: Umpire fired

... and more

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Top Tips

1) A firestorm

A lesser-known federal organization has caused all hell to break loose in Washington.

• The news: President Donald Trump and billionaire sidekick Elon Musk have put the U.S. Agency for International Development (USAID) in their crosshairs. Musk has called the agency "criminal" and claims it "has to die," while Trump has indicated he supports the efforts to dismantle it through the Department of Government Efficiency.

• Catch up: USAID was established by former President John F. Kennedy in 1961 to handle development and international assistance. A past mission statement said the agency "works to end extreme global poverty and enable resilient, democratic societies to realize their potential." The organization provides aid to over 100 nations and employs over 10K people; it managed over $40B in appropriations in FY2023.

• At issue: Musk, tasked with slashing government spending, claims USAID is corrupt. The president said it has been runby "a bunch of radical lunatics." Musk's DOGE has sparked significant upheaval inside the agency, including placing two top officials on administrative leave when they balked at demands to access classified information.

• The pushback: Democrats (and others) have blasted the efforts to diminish or dismantle USAID. Connecticut Sen. Chris Murphy said it is a constitutional crisis, arguing that Trump and Musk lack the authority to shut the agency down unilaterally. Other critics have argued USAID is critical to national security and downgrades could boost adversaries like China.

• Big picture: Secretary of State Marco Rubio is now the acting director of the agency, which he said has a history of ignoring U.S. interests and acting as a taxpayer-funded global charity. The State Department will reportedly merge USAID under its umbrella and maintain its status as an aid entity.

2) Duress deals

The trade wars are on hold.

• The news: Plans to hammer Canada and Mexico with 25% tariffs were paused yesterday. Trump agreed to back off for at least 30 days after talks with Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau; the new 10% tariffs on Chinese imports remains in the pipeline.

• The concessions: Canada and Mexico agreed to hold off on retaliatory economic measures. The neighboring countries also agreed to cooperate further on border security and battling the illicit drug trade. Canadian officials reportedly believe they are on shakier ground with Trump -- who has trolled them with "51st state" comments for weeks -- than Mexico at this point.

• Beijing's take: China said it would hit the U.S. with 15% tariffs in retaliation starting Feb. 10. However, the overall Chinese response has been more muted than that of the North American countries. And Trump said he plans to speak to Chinese President Xi Jinping soon, opening the door for another last-second reversal.

• The markets: Wall Street was not a fan of Trump's initial plan. Major index futures tanked Sunday night into Monday morning following Trump's tariff declarations. But trading bounced back in a big way once the president called off the dogs, closing lower but containing the losses (Dow Jones -0.28%, Nasdaq -1.20%, S&P 500 -0.76%). And futures were mostly flat overnight.

3) New allegations

The latest lawsuit involving a 2023 train derailment in Ohio includes the first wrongful death claims in connection with the incident.

• Catch up: Fifty train cars, including 10 carrying hazardous materials, derailed in East Palestine near the Ohio-Pennsylvania border two years ago. No one was injured, but authorities had to burn off 116K gallons of vinyl chloride -- a move that has devastated the surrounding area.

• The news: Over 700 residents levied numerous allegations against Norfolk Southern in the latest filing, including claims that seven people died as a result of the disaster and the railroad company's negligence. The plaintiffs said NS did not correctly clean up the derailment and post-crash efforts were insufficient to address lingering health problems in the community.

• Big picture: NS and East Palestine recently reached a separate $22M settlement deal. The lawsuit does not provide specifics on how the derailment led to the deaths of the seven people but references health complaints among plaintiffs. The filing coincided with Vice President J.D. Vance's visit to the town.

Quick Tips

U.S. News

• A hiker fell to his death at Zion National Park in Utah. The man's body was found on the Canyon Overlook Trail; officials did not release his name or details on the incident (More)

• The ACLU is suing the University of Michigan over campus bans for pro-Palestinian protesters, alleging free speech violations. The Trump Administration has opened new investigations into antisemitism at several elite schools (More | More)

• An octogenarian gunman was tackled by a parent after opening fire at a Texas band competition. One person suffered non-life-threatening wounds; police said the shooter seemed to believe someone was trying to kill him when he discharged his weapon (More)

World News

• Israeli Prime Minister Benjamin Netanyahu will visit the White House today. It will be President Trump's first meeting with a foreign leader since inauguration day; the men will hold a joint press conference (More)

• Greenland is expected to ban foreign political donations. The proposed law is due to concerns about future election interference in the Danish territory given Trump's calls for U.S. annexation and the likelihood of a future independence referendum (More)

• Syria's interim president said it could take up to five years to organize elections. Ahmed al-Sharaa said the country will be a republic with an executive government and parliament, but it must re-establishing infrastructure first (More)

Political News

• Director of National Intelligence nominee Tulsi Gabbard faces a committee vote today. The former Hawaii House member faces an uncertain path forward; new Energy Secretary Chris Wright was confirmed by the Senate (More | More) 

• Josh Kraft will run for Boston Mayor, challenging incumbent Michelle Wu in the Democratic primary. He is the son of New England Patriots owner Robert Kraft and runs his family's philanthropic arm (More)

• President Trump will be interviewed during Fox's Super Bowl LIX pregame show. He will sit with Fox News anchor Bret Baier in a pre-taped segment at Mar-a-Lago; it will be the first presidential Super Bowl Sunday interview since 2022 (More)

Business & Markets

• State Farm General has requested an emergency interim insurance rate hike in California, citing a "dire" financial situation due to the Los Angeles wildfires. The company is the state's largest provider; it said it has already paid out over $1B in claims (More)

• Salesforce will eliminate over 1K positions while making new hires to sell artificial intelligence products. The customer management software company is expected to allow impacted workers to apply for other internal opportunities (More)

• President Trump signed an executive order to establish a U.S. sovereign wealth fund. He mused it could be utilizedto purchase TikTok; other potential aims would be infrastructure development and efforts to extend influence in foreign countries (More)

Entertainment & Sports

• Major League Baseball fired umpire Pat Hoberg for sharing a legal sports betting account with a friend who bet on the sport and obstructing an investigation. Commissioner Rob Manfred said there is no evidence Hoberg bet on games or manipulated outcomes (More)

• Beyonce announced dates for her Cowboy Carter tour a day after winning Album of the Year at the Grammy Awards. The artist will perform 22 shows in six U.S. cities, London and Paris starting in April (More)

• Former President Joe Biden has signed with CAA. The Hollywood agency represented him after his vice presidency ended and before entering the Oval Office; he wrote a book and participated in a national speaking tour during that period (More)

Quick Hitters

• Real Hero: An Ohio school bus driver was driving on a day off when he noticed smoke. He realized a home on his route was ablaze, so he called 911 before running in and saved the family's two dogs. 

• Take Note: Icy roads and walkways are a part of life at this time of year. Here is a rundown on choosing which method -- salt, sand or kitty litter -- is best to regain traction.

• Go Deep: More people are waiting until their 30s to have children. But that is when careers typically take off, complicating personal and professional lives.

• New Idea: Researchers at the University of Cambridge have invented "jelly batteries" that conduct electricity, stretch and can even heal themselves. The devices could revolutionize everything from brain implants to wearable devices.

• Life Hack: Everyone can battle self-doubt from time to time. Here are actionable strategies to overcome it and prioritize your aspirations and personal growth.

Watch This

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Looking Ahead …

King Charles will grant Amazon Prime exclusive access to produce an upcoming feature-length documentary focusing on his philosophy regarding charitable and environmental works. Filming has reportedly already begun.

Question of the Day

Yesterday’s results:

Did you watch the Grammy Awards last night?

• No (94%)

• Yes (6%)