Sign up for our daily briefing

Make your busy days simpler with the Axios AM and PM newsletters. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on the day's biggest business stories

Subscribe to the Axios Closer newsletter for insights into the day’s business news and trends and why they matter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sign up for Axios Pro Rata

Dive into the world of dealmakers across VC, PE and M&A with Axios Pro Rata. Delivered daily to your inbox by Dan Primack and Kia Kokalitcheva.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sports news worthy of your time

Binge on the stats and stories that drive the sports world with the Axios Sports newsletter. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tech news worthy of your time

Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Get the inside stories

Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Denver news?

Get a daily digest of the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Des Moines news?

Get a daily digest of the most important stories affecting your hometown with the Axios Des Moines newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Twin Cities news?

Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Tampa Bay news?

Get a daily digest of the most important stories affecting your hometown with the Axios Tampa Bay newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Charlotte news?

Get a daily digest of the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Nashville news?

Get a daily digest of the most important stories affecting your hometown with the Axios Nashville newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Columbus news?

Get a daily digest of the most important stories affecting your hometown with the Axios Columbus newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Dallas news?

Get a daily digest of the most important stories affecting your hometown with the Axios Dallas newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Austin news?

Get a daily digest of the most important stories affecting your hometown with the Axios Austin newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Atlanta news?

Get a daily digest of the most important stories affecting your hometown with the Axios Atlanta newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Philadelphia news?

Get a daily digest of the most important stories affecting your hometown with the Axios Philadelphia newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Chicago news?

Get a daily digest of the most important stories affecting your hometown with the Axios Chicago newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sign up for Axios NW Arkansas

Stay up-to-date on the most important and interesting stories affecting NW Arkansas, authored by local reporters

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top DC news?

Get a daily digest of the most important stories affecting your hometown with the Axios DC newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Photo: Al Drago via Getty

President Trump defied Congress on Wednesday, vetoing the National Defense Authorization Act (NDAA).

Why it matters: The House and Senate passed the $740 billion defense spending bill with veto-proof majorities, setting up a potential override fight.

  • The House is set to reconvene for a vote on Dec. 28, with the Senate following on Dec. 29 if the House vote is successful.

Driving the news: Trump had previously pledged to veto the bill if Congress did not repeal Section 230 of the Communications Decency Act, which grants liability protections for social media companies.

  • Trump also opposes legislation in the bill that proposes renaming 10 military installations currently named after Confederate leaders.

What he's saying: "The Act fails even to make any meaningful changes to Section 230 of the Communications Decency Act, despite bipartisan calls for repealing that provision," Trump said in a message to the House Wednesday.

  • "My Administration recognizes the importance of the Act to our national security.  Unfortunately, the Act fails to include critical national security measures, includes provisions that fail to respect our veterans and our military's history, and contradicts efforts by my Administration to put America first in our national security and foreign policy actions," he added.
  • "It is a 'gift' to China and Russia."

Several Democrats swiftly criticized Trump's move.

  • House Speaker Nancy Pelosi (D-Calif.): "The President’s veto of the National Defense Authorization Act is an act of staggering recklessness that harms our troops, endangers our security and undermines the will of the bipartisan Congress. ... Next week, December 28, the House will take up the veto override with bipartisan support."  
  • Senate Minority Leader Chuck Schumer (D-N.Y.): "Donald Trump just vetoed a pay raise for our troops so he can defend dead Confederate traitors. Democrats will vote to override it."
  • Rep. Adam Smith (D-Wash.), chairman of the House Armed Services Committee: "While the President may not care about our service members & their families, Congress still places an immense value on their service & sacrifice."
  • Sen. Jack Reed (D-R.I.), ranking member of the Senate Armed Services Committee: "Sad that Pres Trump seems more devoted to divisive symbols of the Confederacy than to U.S. troops. Congress must prioritize nat'l defense & override Trump’s veto."

Many Republicans also took to Twitter to emphasize the importance of the NDAA.

  • Sen. Jim Inhofe (R-Okla.), chairman of the Senate Armed Services Committee: "I hope all of my colleagues in Congress will join me in making sure our troops have the resources and equipment they need to defend this nation. ... We can and should use another legislative vehicle to repeal Section 230 of the Communications Decency Act – a priority @realDonaldTrump and I share."
  • Sen. Mike Rounds (R-S.D.): "#NDAA is one of the few things in Washington that passes every year with broad bipartisan support, and I anticipate a veto override vote will follow suit. We owe this to the men and women who defend the United States of America."
  • Rep. Denver Riggleman (R-Va.): "As an @usairforce Veteran, I know how important the #NDAA is to our military community. This is an irresponsible veto. We shouldn’t be politicizing our National defense. WILL OVERRIDE!"

Sen. Lindsey Graham (R-S.C.) said he supported the president's call to repeal Section 230 and would not vote to override the veto.

  • "Congress should vote to Repeal Section 230 as requested by President @realDonaldTrump. I will not vote to override presidential veto unless effort is made to wind down Section 230," Graham tweeted.

The big picture: The president signed an executive order in May to limit the powers of Section 230 but sought to repeal it completely through Congress.

  • The defense bill also includes provisions that would increase pay for troops, strengthen anti-discrimination protections for federal employees, allocate funding for countering China and improve national cybersecurity, now a top concern after a months-long cyberattack compromised government agencies and companies.
  • The bill has been passed by Congress every year since 1967.

Editor's note: This story has been updated throughout.

Go deeper

Jan 28, 2021 - Podcasts

Rep. Ro Khanna on top tech priorities, including Robinhood and Section 230

Big Tech is something all Americans use and most Americans complain about, no matter their political affiliation.

Axios Re:Cap goes deeper into the Biden administration's top Big Tech priorities, plus discussion of Section 230 and Reddit day trading with Rep. Ro Khanna (D-Calif.).

It's official: Stock market having worst start to year ever

Data: FactSet; Chart: Axios Visuals

It's been a decidedly ugly start to the year for the stock market, with particular pain in the tech trade.

State of play: As of the end of trading Tuesday — the 16th session of the year — 2022 is now, officially, the worst-ever start in the history of the S&P 500, according to data from Ned Davis Research, a stock market research shop.

Surprising pandemic side effect: Soaring trade deficits

Source: Census Bureau and Bureau of Economic Analysis; Chart: Axios Visuals

Inflation and jobs may get all the economic headlines, but meanwhile a big shift is taking place in the underpinnings of the world economy: The U.S. trade deficit is soaring.

What's happening: Americans' spending on imported physical goods has gone through the roof, while exports are growing slowly, making the U.S. the world's consumer of last resort.