Axios

Sens. Jon Ossoff and Raphael Warnock voted with Republicans on Thursday on the government shutdown, after previously rejecting every GOP measure to re-open the government or fund parts of it.

Why it matters: Their dissents introduce a new challenge for Senate Minority Leader Chuck Schumer (D-N.Y.). He's keeping his total number of defections low, but the universe of Democrats willing to defy him is expanding.

The House Republican campaign arm has a $720,310 edge against its Democratic counterpart in year-to-date fundraising, its first off-year lead since 2015.

Why it matters: The GOP lead is small. But it's a huge upgrade for Republicans from prior years of Democrats dominating early fundraising, including during President Trump's first term.

Most Pennsylvania swing voters in our latest Engagious/Sago focus groups — who all voted for President Trump in 2024 — say Republicans and Democrats deserve equal blame for the federal government shutdown.

Why it matters: Assessments like this are a gut-check for Democrats who think Americans' desire for affordable health care gives them a political halo to demand extensions of COVID-era assistance — and for Republicans who think if they don't budge the public will eventually just blame Democrats.

Senate Foreign Relations Chair James Risch (R-Idaho) has no plans "at this time" to hold an oversight hearing on the Trump administration's deadly strikes on vessels off the coast of Venezuela.

Why it matters: With a few exceptions, Senate Republicans have taken a back seat to President Trump's anti-narcotics tactics in the region.

The White House on Thursday said the fastest way to lower consumer beef prices was through increased imports — despite the concerns of both the domestic industry and key members of Congress.

Why it matters: President Trump firmly insists there's no inflation at the grocery store, but even he concedes beef prices have gotten too high.

There was a closed-door meeting Wednesday between the pro-crypto members of the Senate Democratic caucus and an array of leaders from the digital asset world, discussing legislation around how to structure law for the crypto market.

The big picture: Congress is making it difficult for President Trump to achieve the big legislative win he promised the crypto industry — but his administration could still deliver without passing laws.

President Trump has pardoned Changpeng Zhao, better known as CZ, the founder of crypto exchange Binance, according to a statement from the White House.

Why it matters: The pardon likely provides a path for Binance to operate in the U.S. after more than a year of lobbying Trump.

President Trump has called off sending federal agents to San Francisco after an eleventh-hour call with Mayor Daniel Lurie, but the presence of agents in neighboring Alameda hasn't diminished fears, community leaders tell Axios.

Why it matters: Reports of the deployment had sent ripples of alarm across the city and paved the way for a potentially unprecedented immigration enforcement operation.

The Senate on Thursday rejected a pair of bills that would have paid military servicemembers, along with some or all federal workers during the shutdown.

Why it matters: Republicans and Democrats wouldn't back each other's proposals, leaving the Senate still deadlocked on any solution to open the government.

Most U.S. adults disapprove of the demolition of the White House's East Wing, according to a YouGov survey conducted this week.

Why it matters: The Trump administration has been embroiled in backlash since demolition began earlier this week, taking many by surprise as President Trump had previously said the construction of a 90,000-square-foot ballroom "wouldn't interfere" with the current building.

The decision by payroll processor ADP to suspend the Federal Reserve's access to employment data is a minor story in the scheme of things. But it shows why government-produced economic data is so essential.

The big picture: There has been an explosion in recent years in private sector data that sheds light on how the economy is evolving, and much of it is terrific. But there's ultimately no replacement for the government's might in collecting data from all corners of a $30 trillion economy.

Air traffic controllers will miss their first paychecks next week due to the ongoing government shutdown, and that will likely have consequences for travelers, Transportation Secretary Sean Duffy said Thursday.

Why it matters: Travelers have already seen disruptions at airports plagued by staffing shortages, and Duffy warned the situation could worsen. Air travel was paralyzed during the 2019 shutdown.

A pair of House Democratic committee leaders are launching an investigation into President Trump's demand that the Justice Department pay him $230 million in damages for its past probes into him.

Why it matters: Democrats lack the subpoena power to force Trump to answer their questions, but it signals a new area of inquiry their investigators will likely pursue if they take back the House in 2026.

NFL CMO Tim Ellis defended hosting Bad Bunny for the 2026 Super Bowl halftime show, saying the league isn't trying to please everyone and is focused on staying relevant to the fans driving its future.

Why it matters: The NFL's pick has drawn criticism from far-right commentators, as the Puerto Rican superstar recently has avoided touring in the continental U.S. out of concern that ICE raids could endanger his fans.

The U.S. announced it killed five purported "narco-terrorists" in two strikes on vessels in the eastern Pacific, marking an expansion of the Pentagon's shadowy military campaign.

The big picture: The Trump administration has now disclosed killing more than three dozen people across nine known strikes. The latest are the first the administration has acknowledged outside of the Caribbean.

United Airlines' Lauren Riley is at the forefront of executives evangelizing for a switch to jet fuel with less of a carbon footprint.

Why she matters: As United's chief sustainability officer, Riley has sought to position the airline — the first to publicly commit to a carbon-reduction target — as a leader on sustainable aviation fuel, or SAF.

President Trump on Thursday surpassed a government shutdown record previously set by former President Carter: Across his two terms, Trump has now overseen the most cumulative days under a funding gap.

Why it matters: The Trump administration has taken advantage of the government shutdown to advance its mission with the federal bureaucracy, including cutting agencies and firing employees.

America faces an economy-shaping energy jam: We've never needed more of it more urgently to meet rising consumer and business demand.

Why it matters: We produce and export more energy than at any point in history. But the data centers powering the AI boom suck up so much energy, so fast, it's increasingly jacking up prices for nearby ordinary residents.

The big picture: This dynamic — surging demand and finite supply — is playing out in community after community. It creates a difficult tension for President Trump, who wants both to accelerate AI and slow energy spikes for consumers.

In a new book about Palantir and its CEO Alex Karp, journalist Michael Steinberger chronicles how a self-described leftist who said his "biggest fear is fascism" became one of the tech leaders powering President Trump's agenda.

Why it matters: Karp is among a host of tech billionaires who were once harsh critics of Trump, but now fully embrace him.

Sen. Bernie Sanders (I-Vt.) believes that Rep. Alexandria Ocasio-Cortez (D-N.Y.) would make a formidable presidential candidate in 2028, he tells Axios' Alex Thompson on "The Axios Show."

Why it matters: Ocasio-Cortez is positioning herself for a political leap in 2028, whether for president or challenging Chuck Schumer in a Democratic Senate primary.

A diverse coalition of moderate and progressive Christians has opted to jump off the pulpit and challenge President Trump around immigration, civil rights and poverty.

Why it matters: Trump commands fierce loyalty from conservative evangelicals backing his immigration raids and National Guard deployments.

President Trump has faced backlash for his $300 million ballroom plans. But the White House East Wing has undergone several changes since it was added to the presidential complex as the East Terrace soon after President Theodore Roosevelt took office in 1902.

The big picture: President Franklin D. Roosevelt significantly rebuilt and expanded the East Wing in 1942, which the White House Historical Association notes "was highly controversial due to its timing during wartime." It's since served as office space for the first lady and her staff.

President Trump on Wednesday defended the $300 million expansion project that includes demolition of the White House East Wing after previously saying his ballroom construction plans "won't interfere with the current building."

The big picture: Trump is facing criticism over the construction that was initially projected to cost $200 million, with the Washington, D.C.-based National Trust for Historic Preservation saying in a letter to administration officials this week that the planned 90,000-square-foot ballroom "will overwhelm the White House itself," which is some 55,000 square feet.

The Centers for Medicare and Medicaid Services plans to recall about 3,000 staff who were furloughed because of the shutdown starting on Monday, officials confirmed to Axios.

The big picture: CMS plans to tap fees it charges outside researchers to access its data to pay staff during the shutdown, a spokesperson said.

A pair of polls is showing a potential path for Detroit mayor Mike Duggan to win an independent bid to be the next governor of Michigan.

Why it matters: Michigan has never elected an independent as governor.

San Francisco Mayor Daniel Lurie is ordering local police and officials to support immigrants, protect protesters and avoid cooperating with immigration authorities amid reports that President Trump's administration will soon send over 100 federal agents to the Bay Area.

Why it matters: The expected federal deployment this week of U.S. Customs and Border Protection and other agents, first reported Wednesday by the San Francisco Chronicle, sets the stage for a potentially unprecedented immigration enforcement operation.