Axios

President Trump and his congressional allies are adamant that building his sprawling ballroom — which would sit atop a massive subterranean complex — is a national security need after an alleged gunman derailed the White House Correspondents' Association dinner.

The big picture: The $400 million project is one part of Trump's bid to reshape Washington in his image, which includes his proposed triumphal arch and putting his name on the Kennedy Center.

Crude oil futures are at their highest levels in weeks amid the absence of a diplomatic endgame that frees up the Strait of Hormuz.

Why it matters: The soaring costs, combined with a spike in gasoline prices, mean further political pain for President Trump and Republicans.

A bipartisan Senate bill would put new restrictions on how kids can use AI chatbots, the latest effort from Congress to try to put safety guardrails on the technology.

Why it matters: Lawmakers are increasingly zeroing in on risks AI chatbots may pose to kids.

Bloomberg Philanthropies and Johns Hopkins are launching a Mayors AI Forum, a global coalition of 10 city leaders focused on AI policy and deployment.

The big picture: The forum gives local officials a direct role in shaping how AI is deployed in cities and communities.

The Iran conflict has entered a Cold War-like phase of financial sanctions, gunboat interdictions and talks about having talks.

Why it matters: The tense stalemate has no immediate end in sight. So higher energy prices appear certain for months — and a hot war could break out at any moment.

The share of Americans who say their financial situation is getting worse is higher now than at any point in the past 25 years, per new Gallup data out Tuesday morning.

Why it matters: Americans are struggling after years of higher inflation and a recent surge in gas prices due to the Iran war — a major challenge for President Trump and Republicans as the midterm elections come into view.

The shooting at the White House Correspondents' Dinner on Saturday has done little to bridge the gap between Democrats and Republicans in Congress on reopening the Department of Homeland Security.

Why it matters: Republicans have focused their response to the incident on arguing that Democrats should drop their demands to reform immigration enforcement and fund the entire department.

House Speaker Mike Johnson and Senate Majority Leader John Thune are openly clashing over Homeland Security funding, complicating Republicans' path out of the 72-day shutdown.

Why it matters: Thune is unlikely to say it publicly, but frustration is running high among Senate Republicans over Johnson's failure to pass a DHS appropriations bill that cleared the Senate — twice.

Democrats unleashed fury on Florida Gov. Ron DeSantis and Republican state legislators on Monday over a newly unveiled congressional map aimed at drawing out as many as four Democratic House members.

Why it matters: Party leadership is bullish that Republicans have overextended themselves and created an opening for Democrats to make gains in Florida if they perform strongly enough in November.

Rep. Thomas Massie has stopped counting on help from Elon Musk, despite a vow of support last year from the world's richest man.

Why it matters: Musk has cut huge checks to Republicans and GOP super PACs this cycle. But with the primary just three weeks away, he's yet to lift a finger for Massie against Navy SEAL veteran Ed Gallrein, who was recruited by President Trump.