Axios

President Trump is signaling that tax cuts will be the centerpiece of his State of the Union address Tuesday night — and the cornerstone of his legislative agenda for the rest of the year.

Why it matters: In theory, House Republicans are enthusiastic about another round of tax cuts in a potential second reconciliation package.

• In practice, many of them want to see the specifics of Trump's tax-cut proposals before fully endorsing them.

The Trump administration is considering requiring banks to collect proof of citizenship from customers via an executive order, multiple outlets reported on Tuesday.

The big picture: In addition to President Trump's expansive deportation efforts, his administration has escalated efforts over the past year to cut off noncitizens from access to jobs, aid and financial services.

• It's unclear whether these efforts, or a possible ban on holding bank accounts, might apply even to noncitizens authorized to live and work in the U.S.

The Democratic Senatorial Campaign Committee is placing an early and aggressive bet on Alaska: a $1 million investment to build out the party's on-the-ground infrastructure, Axios has learned.

Why it matters: The money is clear evidence that Minority Leader Chuck Schumer (D-N.Y.) is convinced his path to the majority runs through Alaska — and that his plans are broader than just flooding the airwaves with TV ads.

The men's hockey final for the 2026 Winter Olympics was the most watched sporting event that started before 9am ET in U.S. history and NBC Sports' second-most watched hockey game ever, NBCUniversal said on Tuesday.

Why it matters: Team USA's 2-1 victory in overtime against Canada contributed to a ratings success for NBCUniversal's broadcast of the Milan Cortina Olympics.

Warner Bros. Discovery said that Paramount Skydance raised its offer price to $31 per share from $30 and added that the updated bid "could reasonably be expected" to lead to a superior proposal.

Why it matters: It's a signal that Paramount's campaign to acquire all of WBD isn't over, potentially reigniting a bidding war with Netflix.

A growing list of Democrats have announced special guests they've invited to President Trump's State of the Union — many of them people directly impacted by the administration's immigration policies.

The big picture: Amid a Department of Homeland Security shutdown and standoff between the GOP and Democrats over Trump's ICE enforcement, Democrats are aiming to draw attention away from the president's remarks in a more pointed way.

U.S. Sen. Dave McCormick is advising Pennsylvanians in Mexico to stay in close contact with the U.S. State Department.

The big picture: Violence following the killing of a Mexican cartel leader has erupted in Mexico, leaving some Americans — and potentially Pittsburghers — stuck in a tough situation.

House Minority Leader Hakeem Jeffries (D-N.Y.) is making one final push to shut down any flashy displays of protest inside the chamber during President Trump's State of the Union address, sources tell Axios.

Why it matters: Frustrations are still lingering among House Democrats over last year's speech, which was repeatedly disrupted by heckling, signs and walkouts.

One of President Trump's Cabinet members will skip Tuesday's State of the Union address, sitting out as the designated survivor who would become president in the case of a catastrophic attack.

Why it matters: The designated survivor isn't just an invention of dime-store thrillers and Kiefer Sutherland shows — it's one of the country's most dramatic precautions, born from Cold War fears that gathering the nation's leaders in one place requires planning for the unthinkable.

France has moved to cut off Charles Kushner, the U.S. ambassador and the father of President Trump's son-in-law, from meeting government officials after he failed to appear when summoned.

Why it matters: America's diplomatic corps is supposed to manage its relationships abroad. But the Trump administration's ambassadors have repeatedly butted heads with foreign leaders, threatening to strain relationships with allies.

While Congress is at a virtual stand-still on ICE reforms, state governments are working to put guardrails on federal immigration enforcement.

Why it matters: State lawmakers across the country are testing the extent to which they can counter President Trump's immigration blitz. It's already leading to legal fights.

The Center for American Progress Action Fund, a top anti-Trump group, is bringing on Obama White House alum Carlissia Graham as its new president, the organization first told Axios.

Why it matters: The liberal nonprofit and its sister think tank have been influential in Democratic politics, helping lead the opposition against President Trump and staff former President Biden's administration.

If AI were a politician, it'd be headed for a landslide defeat.

• Defeated by Democrats ... Republicans ... and independents.

Why it matters: In the Trump administration, Silicon Valley, and select AI-obsessed homes or businesses, people are euphoric about the fast rise of generative AI tools. These groups see a coming utopia.

• Almost everywhere else, the vast majority are indifferent, pessimistic — even downright dystopian.
• The politics are shifting so fast against AI that Democratic governors who championed it are in fast retreat.

As the White House gears up its election-year pitch taking credit for lowering prescription drug prices, it faces a key unknown: Will voters notice any difference?

Why it matters: One of President Trump's primary answers to concerns about affordability may fall on deaf ears if patients don't see results — and policy experts have warned many won't.

The AI revolution may be upon us. But nobody knows for sure what it will mean for measures of overall economic well-being like GDP, unemployment, incomes and asset prices.

The big picture: Will super-intelligent computing unleash stunning growth in output — or will it be more like some previous big advances that created "ghost GDP" that didn't show up much in the economic statistics?

As many as half of the world's data center projects slated to come online this year could face delays, according to a report issued Tuesday.

Why it matters: It's a sign of mounting collisions in the AI race — from power constraints and grid equipment shortages to rising community opposition.

Build American AI — an advocacy group tied to pro-AI super PAC Leading the Future — says it has signed up more than 500,000 supporters nationwide.

Why it matters: The fight over AI policy has been dominated by tech industry money, and pro-AI advocates are now trying to show they have broad public support.

The next big phase of President Trump's mass deportations is set to begin as "deportation judges" turn to 3.6 million backlogged cases.

Why it matters: Speeding up immigration court rulings could allow ICE to carry out more deportations, as most cases end in final removal orders.

There's have been dramatic moments in Milan and the White House the last few weeks. Expect them to collide at President Trump's State of the Union address Tuesday night, along with other scripted – and unscripted – moments.

The big picture: The history of the annual address is packed with standout moments — some controversial, some heartwarming, some patriotic and some meme-able.

Peter Mandelson, the former British ambassador to the U.S., was arrested on suspicion of misconduct in public office on Monday amid an investigation sparked by the release of the Epstein files.

The big picture: Mandelson is one of several prominent figures whose careers have been derailed amid the global reckoning for those tied to convicted sex offender Jeffrey Epstein.

House Speaker Mike Johnson's (R-La.) guests at the State of the Union on Tuesday night will include the crew of NASA's Artemis II lunar spaceflight mission, Axios has learned.

The big picture: Lawmakers often use their guest lists to raise visibility for priorities and causes that are important to them and their districts.

Sen. Brian Schatz (D-Hawaii) told Democratic lobbyists and donors that his GOP colleagues underestimate his party's resolve to reform ICE — and that Democrats are united in demanding big changes, Axios has learned.

Why it matters: Schatz's private and unguarded comments are another indication that the Department of Homeland Security shutdown could be prolonged.

Rep. Tony Gonzales (R-Texas) is facing mounting blowback from fellow House Republicans — including calls for his resignation — following allegations that he had an affair with a former staffer before she died by suicide.

• Gonzales has denied having the affair.

Why it matters: The backlash from conservative lawmakers could create headaches for Speaker Mike Johnson (R-La.) and President Trump, who have continued to back Gonzales ahead of a competitive primary next week.

When the Supreme Court threw out the Trump administration's use of a novel emergency tool to implement tariffs Friday, the White House quickly turned to a different novel emergency tool — but economists and lawyers are now questioning its legality as well.

Why it matters: Goodbye, IEEPA tariffs (that would be the International Emergency Economic Powers Act). Hello, Section 122 of the Trade Act of 1974. But the new tool comes with its own questions and limitations.

The chair of the Congressional Democratic Women's Caucus is calling for the removal of Rep. Tony Gonzales (R-Texas) from Congress and an investigation into allegations he had an affair with a staffer before she died by suicide.

• Gonzales has denied having the affair.

Why it matters: The statement adds to growing calls from Gonzales' own Republican colleagues for him to either resign or drop his bid for reelection.