| | | |  | | By Ali Bianco | | Presented by |  | | | |  | THE CATCH-UP | | BULLETIN: U.S. District Judge Richard Leon has rejected Defense Secretary Pete Hegseth’s bid to demote Sen. Mark Kelly (D-Ariz.) following his participation in a video with other lawmakers telling military troops not to follow illegal orders. Leon wrote that the Pentagon “trampled on Senator Kelly’s First Amendment freedoms and threatened the constitutional liberties of millions of military retirees.” The preliminary injunction blocks the Pentagon from demoting Kelly’s rank and reducing his retirement pay. More from POLITICO’s Connor O’Brien and Josh Gerstein
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"People are going to be reeling from this for a really long time,” Sen. Tina Smith (D-Minn.) told Playbook. | Scott Olson/Getty Images | PICKING UP THE PIECES: With border czar Tom Homan announcing this morning that the administration’s massive immigration enforcement surge in Minnesota is coming to a close, the state is reeling from the aftermath. The end of “Operation Metro Surge” — which saw two deaths that roiled the nation, thousands of arrests and a barrage of cases backlogging the state’s courts — has Minnesota’s leaders surveying the impact and asking, what’s next? “I think there is a great sense of pride in the way we’ve stood up to this bullying and this lawlessness, but also it’s come at a huge price — a huge personal price, a huge economic price,” Democratic Sen. Tina Smith told your author in an interview this morning. “There will be, I’m sure, a sense of hope that maybe the worst of this is coming to an end. But, boy, people are going to be reeling from this for a really long time.” Local leaders are expressing cautious optimism over the reduction of federal agents. Minneapolis Mayor Jacob Frey praised the city’s resistance to the administration’s actions and said “it’s time for a great comeback.” (Frey is en route to NYC, where he’ll meet with Mayor Zohran Mamdani and discuss how Democratic cities can stand up to Trump, POLITICO’s Elena Schneider scoops.) But there is “deep damage, generational trauma” left in the operation’s wake, Gov. Tim Walz told reporters. Smith told Playbook that for some Minnesotans, the impact was akin to the Covid-19 pandemic, with many school and business closures. “This was brought down on us by our own government. So how do you get over that?” Smith said. Homan announced that a “significant drawdown” is underway and only a small footprint of federal agents will remain in the city. He lauded the operation as a great success, saying “we’re leaving Minnesota safer” and adding that he’ll remain in the city to oversee the transition. But public opinion, especially following the shootings of Renee Good and Alex Pretti, has soured on the administration’s tactics, with six in 10 saying they believe Trump has “gone too far,” according to the latest AP-NORC poll. Back in Washington: Top Minnesota officials testified before the Senate Homeland Security Committee this morning, where AG Keith Ellison and corrections chief Paul Schnell rejected claims that the state hasn’t worked with law enforcement to apprehend criminals, per POLITICO’s Gregory Svirnovskiy and Eric Bazail-Eimil. But Rep. Tom Emmer (R-Minn.), who also testified, didn’t mince words as news of the drawdown broke during the hearing, blaming the state’s “sanctuary city” policies for the unrest. Smith, who is not seeking reelection this year, told Playbook she intends to speak with Homan to figure out exactly what his announcement means, and whether the remaining officers will use the same tactics that have sparked controversy in the state. The two top Democrats vying to replace Smith — Rep. Angie Craig and Lt. Gov. Peggy Flanagan — both echoed the sentiment that trauma is now reverberating across the state, with Flanagan writing: “I won’t believe it until they're actually gone.” GOP candidate Michele Tafoya has not publicly commented on the announcement. But Smith is left wondering: Where is ICE headed now? “Who's going to be the next Democratic target? Because, let’s be honest, that’s what's happening here,” Smith told Playbook. Meanwhile, the DHS funding battle on the Hill continues. The agency is barreling toward a shutdown which — if lawmakers skip town today as expected ahead of next week’s recess — could endure for a while once the midnight deadline hits at the end of the day tomorrow. The House is done voting for today, and Democrats on both sides are doubling down. House Minority Leader Hakeem Jeffries told reporters he’s reviewing the legislative text sent over by the White House, but that it seems to “fall short.” “I feel quite confident that Democrats will be a hard no,” Smith told Playbook when asked about whether Senate Democrats will help the GOP advance another stopgap funding for DHS today. She also panned the White House’s counterproposal: “I don't think that's going to get us very far … the Department of Homeland Security is awash in billions of dollars, and there is no reason for us to send them more money.” MORE IMMIGRATION NEWS: Judge James Boasberg is ordering the Trump administration to facilitate the return of the Venezuelan men that were deported to El Salvador last March under the Alien Enemies Act, POLITICO’s Josh Gerstein and Kyle Cheney report. … Meanwhile, voluntary departures, where immigrants leave of their own volition rather than go through formal deportation proceedings, are at a record high, CBS’ Julia Ingram and Kati Weis scoop. Good Thursday afternoon. Thanks for reading Playbook PM. Send me your tips at abianco@politico.com.
| | | | A message from AHIP: 35 Million Seniors Could See Reduced Benefits and Higher Costs. Health plans welcome reforms to strengthen Medicare Advantage. However, a proposal for flat program funding at a time of sharply rising medical costs and high utilization of care will directly impact seniors' coverage. If finalized, this proposal could result in benefit reductions and higher costs for 35 million seniors and people with disabilities when they renew their Medicare Advantage coverage in October 2026. Learn more. | | | | | | 8 THINGS YOU NEED TO KNOW | | 1. TRIALS AND TRIBULATIONS: Assistant AG Gail Slater said in a stunning announcement this morning she is stepping away from her position leading the DOJ’s antitrust division, POLITICO’s Aaron Mak and Nate Robson report. She led some of the agency’s biggest antitrust cases and has seen the agency through its share of turmoil. But CBS’ Jennifer Jacobs and Sarah Lynch report that administration officials decided to oust Slater shortly before her announcement, after she lost the trust of AG Pam Bondi and Deputy AG Todd Blanche. Mark your calendar: A U.S. judge said Trump’s $10 billion defamation case against the BBC can start next year, setting a “provisional start date of Feb. 15, 2027 for a two-week trial,” per AP. 2. VEXING VENEZUELA: Venezuela acting President Delcy Rodriguez told NBC’s Kristen Welker in an exclusive interview that she “absolutely” is committed to holding free and fair elections in the country. “We will need to have a political dialogue to make sure that these elections can take place perfectly,” Rodriguez told Welker in an excerpt of the interview, shared exclusively with Playbook. “And I have to tell you the time frame for the elections will be marked and decided by the political dialogue in this country. And we know that we will have elections where Venezuelans will feel completely identified with the elections and the process.” Asked whether she would help facilitate the return of opposition leader María Corina Machado, Rodriguez demurred: “She will have to answer to Venezuela why she called upon a military intervention, why she called upon sanctions to Venezuela, and why she celebrated the actions that took place at the beginning of January,” Rodriguez told Welker. “It is not something that is up to me,” she added. Welker and NBC are the first major network to report from Venezuela since Nicolás Maduro was captured by U.S. forces. The full interview will be up on NBCnews.com later this afternoon. More on Venezuela: Rodriguez also told Welker that Maduro is still the “legitimate president.” Trump, meanwhile, posted to Truth Social that relations with Venezuela are “to put it mildly, extraordinary!” 3. AMERICA AND THE WORLD: As the Munich Security Conference prepares to kick off, a group of eight former American ambassadors to NATO and eight former American supreme commanders in Europe are urging the U.S. to not stray from its “vital” commitment to the alliance, NYT’s Steven Erlanger reports. In a joint letter, they write “the United States remains the world’s most powerful and economically secure nation.” After VP JD Vance torched Europe in his MSC speech last year, European leaders are anxiously awaiting remarks from Secretary of State Marco Rubio, who “plans to take a less contentious but philosophically similar approach when he addresses the annual gathering of world leaders and national security officials Saturday,” AP’s Matthew Lee reports. Eyes (still) on Greenland: “NATO launches Arctic Sentry military effort in seeking to move on from Greenland dispute,” by AP’s Lorne Cook 4. FOR YOUR RADAR: “U.S. Smuggled Thousands of Starlink Terminals Into Iran After Protest Crackdown,” by WSJ’s Alex Ward and Robbie Gramer: “The Trump administration covertly sent thousands of Starlink terminals into Iran after the regime’s brutal crackdown on demonstrations last month, U.S. officials said, an effort to keep dissidents online following Tehran’s stifling of internet access. … the U.S. smuggled roughly 6,000 of the satellite-internet kits into the country, the first time the U.S. has directly sent Starlink into Iran.”
| | | | POLITICO Governors Summit Join POLITICO's annual Governors Summit, held alongside the National Governors Association’s Winter Meeting, for a series of forward-looking conversations with governors from across the country about how state leaders are setting the agenda for America’s next chapter. Hear from Gov. Wes Moore (D), Gov. Kevin Stitt (R), and more. Register Now. | | | | | 5. 2026 WATCH: Progressive influencer Kat Abughazaleh — who’s facing a heated primary battle in the race to replace retiring Rep. Jan Schakowsky (D-Ill.) — is getting a boost with a joint endorsement from Justice Democrats and the Peace, Accountability, and Leadership PAC, Elena scoops. But Abughazaleh has more than a dozen opponents as the race has become something of a national proxy fight over Israel. Cash dash: With days to go before early voting kicks off in Texas, Democratic state Rep. James Talarico announced he raised over $7.4 million in the first six weeks of this fundraising quarter, a big haul in the Democratic Senate primary race between him and Rep. Jasmine Crockett (D-Texas), per Playbook’s Adam Wren. 6. IN THE DOGE HOUSE: “Conservatives unload on GOP’s failures to carry out DOGE cost-cutting,” by CNN’s Annie Grayer and Adam Cancryn: “Inside the White House, the cost-cutting crusade marked by mass firings and blanket funding eliminations is largely seen as over … And now, Trump officials are signaling they likely will not try to pass another package clawing back more funds … Even Rep. Tim Burchett, who is taking over as the leader of the congressional subcommittee focused on DOGE, knows he is facing an uphill battle that is unlikely to be successful as a result of resistance on both sides of the aisle.” 7. THE EPSTEIN SAGA: Sen. Jacky Rosen (D-Nev.) is planning to introduce a resolution today that will put the Senate on record opposing a possible pardon or clemency for Jeffrey Epstein co-conspirator Ghislaine Maxwell, POLITICO’s Jordain Carney scoops. Rosen told Jordain in a statement that she wants to make sure the Senate “sends a clear message” to the White House. This latest approach comes as Democrats have been figuring out the best message when it comes to Epstein and whether it can translate on the campaign trail, NOTUS’ Emily Kennard writes. Deeper reads: “Inside Epstein’s network,” by The Economist … “Inside a former Obama WH counsel’s ties to Epstein,” by CNN’s Andrew Kaczynski and Em Steck 8. THE BRAVE NEW WORLD: “Anthropic Puts $20 Million Into a Super PAC Operation to Counter OpenAI,” by NYT’s Teddy Schleifer: “The donation effectively kicks off a new conflict between the rivals, with this year’s midterm elections as the battleground. At the heart of the disagreement between the companies is whether to regulate the artificial intelligence industry with more safety guardrails around the powerful technology. Anthropic generally favors politicians who are more pro-regulation than OpenAI does.” More AI reads: “OpenAI pivots its California ballot fight to Legislature,” by POLITICO’s Christine Mui and Chase DiFeliciantonio … “A tech group is launching a new effort to keep Democrats from falling behind on AI,” by POLITICO’s Jessica Piper
| | | | A message from AHIP:  
| | | | | | TALK OF THE TOWN | | THE CASE EVERYONE IS WATCHING — Investigators in Tucson are now asking people to share surveillance video from their homes on specific dates leading up to the disappearance of Nancy Guthrie, the missing mother of “Today” show host Savannah Guthrie, AP’s Ty Oneil reports. It’s unclear where the investigation stands today, but the FBI fanned out in the area yesterday to ask questions and search for information in the area. MEDIAWATCH — Paramount CEO David Ellison was at the White House last week, where he met privately with Trump for “two wide-ranging conversations,” as his company’s hostile takeover bid for Warner Bros. Discovery, which includes CNN, continues to unfold, CNN’s Brian Stelter reports. KENNEDY CENTER WOES — “Kennedy Center head warns of 'skeletal' staff during two-year renovation,” by AP’s Hillel Italie: “Kennedy Center President Richard Grenell told staff that ‘departments will obviously function on a much smaller scale with some units totally reduced or on hold until we begin preparations to reopen in 2028,’ promising ‘permanent or temporary adjustments for most everyone.’ … The Kennedy Center is slated to close in early July. … It’s unclear exactly how many employees the center currently has, but a 2025 tax filing said nearly 2,500 people were employed during the 2023 calendar year.” PLAYBOOK METRO SECTION — “Compass Coffee had Starbucks-size ambitions. Here’s how it unraveled,” by WaPo’s Tim Carman: “How did a D.C. feel-good story — a company started by two Marines who redirected their military discipline into the coffee business — wind up [bankrupt] with a mountain of debt, an uncertain future and a contentious legal battle between founders?” CANDIDATES WHO BRUNCH — Chris Jones’ campaign for Arkansas’ 2nd Congressional District held a breakfast fundraiser this morning hosted by Rep. Gabe Amo (D-R.I), Brandon Neal and IBEW at the organization’s international office and raised $20,000. SPOTTED: Kimball Stroud, Mignon Clyburn, Nicole Venable, Hasan Christian, Arthur Neal, Dana Gresham, Malcolm Sherrod, Marc Littlejohn, Kalila Hines and Wala Blegay. OUT AND ABOUT — French Ambassador Laurent Bili last night hosted a dinner at his residence moderated by Widehall's Steve Clemons, focused on global trade and financial imbalances, with Pierre-Olivier Gourinchas, Reps. Beth Van Duyne (R-Texas), Jim Himes (D-Conn.), Juan Vargas (D-Calif.) and Bill Keating (D-Mass.). SPOTTED: Federal Reserve Vice Chair Michelle “Miki” Bowman, Sam Mulopulos, Oren Cass, Tucker Foote, Archie Hall, Neil Irwin, David Lynch, Greg Ip, Marlene Colucci, Robin Brooks, Benjamin Dubertret, Candida Wolff, Robin Hayes, Matthew Mazonkey, Deborah Lehr, Sebastien Fagart, Charles Lichfield, Anish Melwani, Jessica Miller, Brad Setser, Richard Vague, Mark Sobel, Andrea Whittaker and Stephen Vaughn. — SPOTTED last night at Barrel on Capitol Hill for an introductory happy hour for Ronna McDaniel in her new role as the chair of the Competitiveness Coalition: Abigail McDaniel, Brandon Arnold, Courtney Manley, Ashley Baker, Paul Steidler, Sarah Anderson, Mike Banarian, Jeffrey Depp, Jack Confrey, Ben Snead, Nick Johns, Gretchen Andersen, Ben Susser, Mike Reed and Colin Reed. — NOTUS held an event last night to kick off primary season at The Spire. SPOTTED: Rep. Jake Auchincloss (D-Mass.), Nick Troiano, Arielle Elliott, Elaine Kamarck, Jasmine Wright, Alex Roarty, Riley Rogerson, Carrie Dann, Ron Bonjean, Kirk Bado, Robb Harleston, Ylan Mui, Brad Bosserman and Justin Peligri. — The Motion Picture Association, The Walt Disney Company and America250 hosted a screening of “National Treasure” last night at the MPA to kick off the MPA’s “Americans United at the Movies” screening series. SPOTTED: Charlie Rivkin, Jon Voight, Susan Fox, Reps. Brian Babin (R-Texas), Aaron Bean (R-Fla.), Derrick Van Orden (R-Wis.), and Laura Friedman (D-Calif.), Robert Newlen, Sean O’Brien, Matthew Loeb, Steven Paul, Scott Karol, Elissa Alben, Ben Gielow, Ted Lehman, Andrew Reinsdorf, Tejasi Thatte, Alexa Verveer, Bill Bailey and Troy Dow. TRANSITIONS — Sam Jefferies is joining Dezenhall Resources as SVP. He previously worked at Starbucks. … Salim Rahim is joining Morgan Lewis as partner in the DC office. He previously worked at Baker McKenzie. WELCOME TO THE WORLD — Lisa Vedernikova Khanna, a former congressional candidate in Virginia, and Harry Khanna, a member of the DNC, welcomed daughter Elizabeth on Wednesday. Did someone forward this email to you? Sign up here. Send Playbookers tips to playbook@politico.com or text us on Signal here. Playbook couldn’t happen without our deputy editor Garrett Ross.
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