Axios

Acting Attorney General Sally Yates told DOJ lawyers they should not make legal arguments in defense of Trump's executive order on refugees and travel limitations on immigrants, per multiple reports. She does not find the order to be lawful.

Why this matters... for now: Yates is an Obama appointee and her order will remain in effect until Jeff Sessions is confirmed.

In the wake of the executive order banning entry to the United States for people from seven majority-Muslim countries, The Times of London reports that Prime Minister Theresa May is facing pressure from Queen Elizabeth II after May's announcement at a joint press conference last Friday that President Trump would be granted a state visit to the United Kingdom.

An online petition in the UK to cancel the state visit has reached 1.5 million signatures and tens of thousands of protestors amassed outside Downing Street tonight. Buckingham Palace reportedly expressed dismay that the Queen — famously neutral — was being dragged into a political event.

The former head of the UK's Foreign Office: "It would have been far wiser to wait to see what sort of president he would turn out to be before advising the Queen to invite him. Now the Queen is put in a very difficult position."

Trump says Lockheed Martin will cut $600 million off about 90 planes in negotiations for a deal expected to close by the end of the month. He attributed the price quote to CEO Marillyn Hewson, according to CNBC. This will mark the 10th batch of F-35 aircrafts in the acquisition and will likely be delivered in 2018, and for the first time the F-35s will boast a price per plane less than $100 million, closer to $85 million. According to Hewson, this is a price drop of 60% compared to the ninth batch, per a Defense News report.

Taking credit: Trump pointed out that he stepped in last month to push the negotiations forward and that these costs will likely continue to drop as production ramps up. "We will be savings billions and billions and billions of dollars on contracts," he said.

Yes, but: Production was accelerating anyways, and a basic lesson in economics would spell it out for anyone to see that as production increases, costs fall. And Lockheed Martin vowed to dip below that $100 million marker before Trump came into the picture due to economies of scale, per a Defense News report from September 2016.

Jeff Sessions helped design the Trump administration's first week of "shock and awe" executive actions, the Washington Post reports. In fact the flurry of activity since the inauguration is slower than Sessions wanted. Trump wanted to slow things down for maximum news exposure.

The Post also gets what it calls a "lengthy e-mail" from Steve Bannon about Sessions, where he writes that Sessions will be the "clearinghouse for policy and philosophy" in the administration.

Jeff Sessions has been at the forefront of this movement for years, developing populist nation-state policies that are supported by the vast and overwhelming majority of Americans, but are poorly understood by cosmopolitan elites in the media that live in a handful of our larger cities — Bannon in e-mail to Post

Why this matters: Sessions is the third piece of the triumvirate running Trump policy, along with Bannon and adviser Stephen Miller. In the Senate, Sessions was known for his opposition to illegal immigration and trade deals.

With thousands across the United Kingdom protesting Trump's immigration executive order today, British Foreign Secretary Boris Johnson did his best to defend the state invitation extended by Queen Elizabeth II to President Trump in a speech to the House of Commons:

"To the best of my knowledge, both Nicolae Ceaușescu and Robert Mugabe have been entertained by Her Majesty the Queen, and I think most Members would concede that it is our duty and the right thing to do to make preparations now for receiving our friend, our partner, the leader of a long-established great democracy and our most important ally."

Obama's office refuted on Monday President Trump's claim that the immigration ban was inspired by a 2011 ban on Iraqis. Obama's spokesman said, "The President fundamentally disagrees with the notion of discriminating against individuals because of their faith or religion." Obama also supports the protests, per the statement:

"Citizens exercising their Constitutional right to assemble... is exactly what we expect to see when American values are at stake."— Kevin Lewis, Obama spokesman

Few at the Koch donor retreat here in Indian Wells, Calif. trust that Donald Trump, a nationalist populist, will carry out a conservative policy agenda. So conservative governors and donors are putting their hopes — and advocacy — in VP Mike Pence.

Data points:

• While they're cool on Trump, Charles Koch and his top lieutenants have great relationships with Pence. They're also close to Pence confidant Marc Short, who used to be a top Koch network official and is now the Trump administration's point man in dealing with Congress.
• We pressed Koch officials and a top donor — Texas businessman Doug Deason — on why they think they can get criminal justice reform done this year given Trump's 1960s-style law-and-order campaign. The answer we got: "Mike Pence."
• During a Republican governors panel on Monday, Arizona's Doug Ducey, Illinois' Bruce Rauner and Wisconsin's Scott Walker were bullish about getting more authorities and money back to the states now Republicans have unified power in Washington. Moderator Mary Katharine Ham asked which specific areas Trump said he'd push authorities back to the states. Ducey's response was revealing: "When he picked Mike Pence as Vice President..." The Koch donor audience loudly applauded.

Our take: Pence's conservative credentials are impeccable, but measuring his influence over Trump is less straightforward. Remember that Trump and his chief strategist Steve Bannon have something close to contempt for the Koch and Paul Ryan school of principled, ideological, conservatism.

Back in 2014, Bannon told a Skype audience at the Vatican: "The second form of capitalism that I feel is almost as disturbing [as state-sponsored capitalism in China and Russia], is what I call the Ayn Rand or the Objectivist School of libertarian capitalism." That worldview hasn't changed.

One quote to sum it all up: "The president is taking steps to be proactive rather than reactive when it comes to our nation's safety and security."

1. Minimizing the executive order's impact: "It's a shame that people were inconvenienced, but it's a couple of hours. I'm sorry that people had to wait a little while." Repeating a line from the Sunday morning shows, Spicer said that only 109 people were detained out of 325,000 entering the country in the first 24 hours of the order.
2. Clarifying the NSC: Spicer said that reports that the Director of National Intelligence and Chairman of the Joint Chiefs are being bumped from National Security Council meetings are "utter nonsense." The administration is also amending the memo to include the CIA Director as a part of the NSC. The inclusion of Steve Bannon in the memo was an attempt to be transparent and "he'll be in and out as needed."
3. SCOTUS pick: Trump's pick tomorrow is on the previously-released list. Spicer accidentally referred to the pick as "he."
4. What about Garland?: On Dems blocking SCOTUS pick: "That just shows you that it's all about politics, it's not about qualifications. The president has a right to have his nominees taken up." (Senate Republicans blocked Obama's nomination of Merrick Garland from March of 2016 until his nomination expired on the first day of the 115th Congress.)
5. Trump's empty Cabinet: Spicer again decried Democratic Senate obstruction of Trump nominees, which the White House Press Office supplemented with a press release while he was still discussing the topic.

Senate Democrats are prepared to block any Trump Supreme Court nominee.

Sen. Jeff Merkley told Politico on Monday that he will filibuster any pick that is not Merrick Garland, and that the vast majority of his caucus will oppose any nomination.

This is a stolen seat. This is the first time a Senate majority has stolen a seat ... We will use every lever in our power to stop this.

Why this matters: Mitch McConnell has said he wants to confirm a SCOTUS nominee without invoking the nuclear option, which would allow Republicans to push a nominee through with 51 votes. If Democrats won't cooperate, he'll be forced to decide between setting precedent and allowing Democrats to deny Trump a SCOTUS nominee.

The Koch donor network, helmed by billionaire brothers Charles and David Koch, is poised to join the fray on President Trump's behalf. At their retreat in Indian Wells, Calif., top Koch officials said they're waiting for the nominee's identity to be revealed, but they liked the initial list of names Trump released.

Why this matters: The Kochs have the biggest political infrastructure and the most cash of any outside group on the right, and they want to be helpful to Trump where they align with his policies, including on regulatory reform, tax cuts, and now, SCOTUS. Charles Koch, 81, has made it abundantly clear to donors and officials that he's not going anywhere.

What's next: Majority Leader Mitch McConnell wants to get Trump's nominee through the traditional way: Marshaling 60 votes in the Senate. He'd rather not break precedent and use the so-called "nuclear option" for the highest court (ramming the nominee through with 51 votes.) To do that, Republicans need to pressure eight Democrats into supporting the nominee.

Outside groups matter in this battle: The Judicial Crisis Network "will lead a $10 million effort encouraging 10 Senate Dems up for re-elect in 2018 to vote to confirm nominee or face losing their seats in 2018," says conservative operative Greg Mueller.

Brookings' Lawfare Blog obtained a copy of a draft memo created by "numerous Foreign Service officers and other diplomats" to express dissent to President Trump's executive order restricting immigration from seven Muslim-majority countries. Hundreds of foreign service officers are expected to be party to the memo, which will be submitted through the State Department's Dissent Channel. The money quote:

"We do not need to place a blanket ban that keeps 220 million people — men, women, and children — from entering the United States to protect our homeland. We do not need to alienate entire societies to stay safe. And we do not need to sacrifice our reputation as a nation which is open and welcoming to protect our families. It is well within our reach to create a visa process which is more secure, which reflects our American values, and which would make the Department proud."

Read the entire draft memo here.

Trump signed his promised "one in, two out" executive order for regulations this morning, surrounded by small business leaders.

At a meeting with the small businesses beforehand, Trump said:

"We want to make life easier for the small business owners.... We are going to simplify, reduce, eliminate regulations. We're doing that for big business too, by the way. Can't be any discrimination, right? Big businesses are thrilled with what's happening. The stock market has gone up massively since the election."

Goldman Sachs CEO Lloyd Blankfein sent a voicemail to employees Sunday stating that Trump's executive order "is not a policy we support," per Reuters. Blankfein added that Goldman would work to minimize the potential fallout on employees and families impacted by the ban.

JPMorgan's operating committee also issued a statement, and said that they have worked to reach out to all employees that might be impacted by the order and noted "our country, economy and wellbeing are strengthened by the rich diversity of the world around us," Business Insider reported.

Why this matters: Tech companies were most vocal in opposition to the order over the weekend. This could be a sign that other big U.S. companies that do business globally are going to start speaking out.

Forbes has a report detailing how President Trump's executive order on immigration could exacerbate the shortage of doctors in the United States, which is already expected to reach between 61,700 and 94,700 by 2025.

By the numbers: 260 people have applied for medical residency from the seven countries under the ban. Those 260 could serve 3,000 patients each, according to Dr. Atul Grover, executive vice president of the Association of American Medical Colleges. "There is a lack of clarity in all of this," Grover said of the executive order.

On their show this morning, Joe and Mika of MSNBC's Morning Joe discussed their meeting with President Trump yesterday and other conversations with senior administration officials over the weekend. The highlights:

• Stephen Miller was behind the executive order: "You get a very young person in the White House on a power trip thinking that you can just write executive orders and tell all of your Cabinet agencies to go to hell. And Washington's in an uproar this morning — forget about what's happening in the street — because Stephen Miller decided he was going to do this without going through the regular interagency process."
• The Mattis/Kelly/Tillerson reaction: "If this did happen again, the president would have serious problems with his foreign policy team as well as the entire government."
• Trump's okay with it: Trump expressed no regret about the executive order rollout, but senior administration officials had discussions regarding how it was not properly communicated both to the media and other federal agencies.
• National Security Council meetings: It took Joe 4 hours to nail down confirmation from the White House that the Director of National Intelligence and the Chairman of the Joint Chiefs of Staff have open access to NSC meetings.

Per Bloomberg, the Trump administration has drafted an executive order that would change how H-1B visas, a mainstay of the tech industry, are awarded.

"Our country's immigration policies should be designed and implemented to serve, first and foremost, the U.S. national interest," the draft proposal reads, according to a copy reviewed by Bloomberg. "Visa programs for foreign workers … should be administered in a manner that protects the civil rights of American workers and current lawful residents, and that prioritizes the protection of American workers -- our forgotten working people -- and the jobs they hold."

Why it matters: Tech companies are already tip-toeing around Trump, as Axios' Kim Hart wrote this morning. If Trump goes after H-1Bs, the cautiously cordial relations between Trump and tech could unravel.

Tech execs are donating millions to organizations that are challenging Trump's executive order and helping immigrants remain in the U.S. The American Civil Liberties Union (ACLU) in particular is receiving a lot of Silicon Valley love — racking up over $24 million in online donations over the weekend.

Below is a growing list of the company execs giving big to the ACLU. For more visit TechCrunch's in-depth article:

Remember Michael Flynn, Trump's National Security Advisor? He's had a rough transition, and insiders aren't happy with him, according to Maggie Haberman and Glenn Thrush of the NYT. In addition to weathering a FBI inquiry about ties to Russia (he was cleared), he's dealing with White House whispers:

1. Talking too much: "Mr. Flynn's penchant for talking too much was on display on Friday in a meeting with Theresa May, the British prime minister, according to two people with direct knowledge of the events."
2. His son's tweets: Michael Flynn, Jr. already caused trouble on Twitter when he promoted the "Pizzagate" conspiracy theory, and most recently referred to the immigration ban as "the Muslim ban" and claimed it was "necessary." His account has been deleted.
3. Skipped a meeting with Mattis, Pompeo and Tillerson: "Mr. Flynn was invited but did not attend. Part of the meeting was devoted to discussing concerns about Mr. Flynn, according to an official with knowledge of it."

Who wins: Steve Bannon, who has taken on a bigger national security role.

The president, in a series of three tweets Monday, addressed Americans who are protesting his temporary ban on refugees from seven Muslim-majority nations:

"Only 109 people out of 325,000 were detained and held for questioning. Big problems at airports were caused by Delta computer outage, protesters and the tears of Senator Schumer. Secretary Kelly said that all is going well with very few problems. MAKE AMERICA SAFE AGAIN! There is nothing nice about searching for terrorists before they can enter our country. This was a big part of my campaign. Study the world!"

Context: This is a good signal of what Trump is watching. Breitbart News prominently featured on Sunday a video of the Senate Minority Leader crying while talking about the refugee ban.

Friends and colleagues say President Trump, chief strategist Steve Bannon and policy guru Stephen Miller think they're off to a terrific start. They see complaints about the travel ban as media misinformation and hype — amplified by Republicans they don't like and that they know will never like them.

CEOs of major tech companies are anxious about publicly challenging President Trump over refugees and other topics. The reason: they fear Trump will single them out for outsourcing jobs or shut down the so-called H-1B visa program they use to hire high-skilled foreign employees for crucial engineering and technical jobs.

White House officials tell us they are right to be nervous, especially about changes to the visa program. Chief strategist Steve Bannon and policy chief Stephen Miller are known to be deeply skeptical of the program, and will have a strong, vocal ally when Jeff Sessions gets confirmed as Attorney General.

A senior administration official told Axios Sunday night "there is absolutely no reason" to tweak Trump's immigration order. This after congressional Republicans — including key figures like House Homeland Security Chairman Mike McCaul — are calling for adjustments.