Washington On One - 3/9/2026

THE LEDE:   Trump said his administration would not reach a “deal” with Iran until its regime submits to “UNCONDITIONAL SURRENDER,” after which he pledged that the U.S. and its allies would “bring Iran back from the brink of destruction, making it economically bigger, better, and stronger than ever before,”… War Powers Resolutions fail in both the House and the Senate…The Trump administration is weighing a range of options for addressing the spike in oil and gasoline prices amid the war in Iran, Interior Secretary Doug Burgum said…DHS Sec Noem out, Trump picks OK Senator Mullin as DHS secretary…Yes the Agency is STILL shutdown…US to Create $20b Reinsurance Facility for Gulf Shipping...Pentagon formally designates Anthropic a supply-chain risk…US and Venezuela agreed to reestablish official diplomatic ties…EU lawmakers keep US trade deal in the freezer…Lutnick agrees to testify in House Oversight’s Epstein probe…Labor Department scandal investigation sidelines another Chavez-DeRemer aide.. 24 states sue over Trump's latest tariffs…RFK Jr. announces agreement with medical schools to teach nutrition…House Ag Committee advances GOP-led farm bill with seven Democratic votes…KIDS Act moves, COPPA 2.0 stalls in House E&C…White House faces thousands of lawsuits as it tries to slow-walk tariff refunds…White House assisting probe of 'sophisticated' hack into FBI surveillance system…Trump says he will endorse ‘soon’ in Texas GOP Senate primary — and he wants the other guy to drop out…Texas Rep. Julie Johnson heads into runoff against predecessor Colin Allred…Al Green, Christian Menefee head to runoff in member-on-member Democratic primary…D.C.’s cherry blossoms will peak between March 29 and April 1, Park Service says

NUMBERS:  The U.S. labor market lost 92,000 jobs in February,  the unemployment rate ticked up to 4.4 percent, according to new data from the Bureau of Labor Statistics.  U.S. gas prices jumped nearly 27 cents this week as a result of the conflict — a spike unseen since the onset of Russia’s war in Ukraine in May 2022, AAA found

IRAN:  The U.S.-led war in Iran has escalated following the appointment of Mojtaba Khamenei as Supreme Leader, succeeding his father who was killed in an Israeli strike. His ascension signals a hardened Iranian resolve against U.S. and Israeli military pressure. Seven Americans are confirmed dead, while Iranian fatalities are estimated at over 1,300. Senate Democrats are currently demanding an inquiry into reports that a U.S. strike killed dozens of Iranian schoolchildren during the opening days of the conflict.  The war has rapidly expanded into Iraq and Lebanon, with mutual strikes on desalination plants creating a humanitarian crisis. U.S. diplomats have evacuated Saudi Arabia following drone attacks in Riyadh. With the Strait of Hormuz closed, oil prices have spiked to over $100 per barrel, triggering the most severe energy crisis since the 1970s. Global markets are reeling as G7 nations consider releasing 400 million barrels from strategic reserves to stabilize the economy.  President Trump dismissed domestic gas price concerns on Sunday, calling them a small price to pay for neutralizing Iran’s nuclear threat. The Senate Armed Services Committee is scheduled to receive a classified briefing on Operation Epic Fury this Tuesday morning to assess the growing conflict.

DHS:  President Donald Trump announced Thursday he will nominate Senator Markwayne Mullin (R-Okla.) to lead the Department of Homeland Security, reassigning current Secretary Kristi Noem to a special envoy role for Western Hemisphere cooperation. The move follows months of internal friction and a private push by senior officials, including Chief of Staff Susie Wiles and Border Czar Tom Homan, to replace her.  Noem’s tenure was marked by intense GOP scrutiny over her management of a fatal DHS enforcement surge in Minneapolis and a controversial $220 million ad campaign featuring herself. While Noem claimed Trump approved the spending, White House officials flatly denied it, viewing the ads as a self-promotional political tool. Additional scandals involved her special adviser, Corey Lewandowski, whose outsized influence over contracts and potential violation of temporary employment limits drew sharp internal criticism.  Trump’s decision to move Noem to a newly created security initiative—to be detailed at a Florida summit this Saturday—effectively ends a leadership period dogged by allegations of fiscal mismanagement and operational "chaos." Lewandowski is also expected to depart the agency.  Republicans have largely praised the selection of Mullin, a close Trump ally and Senate "whisperer" known for navigating complex legislative deals. Senate Majority Leader John Thune suggested Mullin’s strategic approach would align well with Homan’s border priorities. While the administration aims for a March 31 confirmation, it remains unclear if the Senate will meet that timeline.

OH YEA, IT’S STILL SHUTDOWN: The Senate failed for a third time Thursday to invoke cloture on a motion to proceed to H.R. 7147, leaving the Department of Homeland Security (DHS) unfunded for the twentieth consecutive day. Democrats remain united in their demand for immigration enforcement curbs as a prerequisite for reopening the agency. Republicans, citing the urgency of the conflict in the Middle East, argue the lapse endangers critical operations within the TSA and Secret Service.  In the House, lawmakers passed H.R. 7744 (221–209), a funding measure identical to H.R. 7147 but omitting the "Arctic Frost" provision concerning FBI access to Senate phone records, which was resolved through separate legislation. 

FARMBILL:  The House Agriculture Committee advanced a Republican-led farm bill in a 34-17 vote early Thursday following a marathon partisan markup. Seven Democrats joined Republicans to pass the legislation, which serves as the first formal reauthorization of agriculture and nutrition policies since 2018.  Chairman G.T. Thompson (R-Pa.) touted the bill's bipartisanship, having successfully courted vulnerable Democrats with targeted amendments. These additions include making tobacco eligible for USDA disaster funds and reauthorizing tractor safety programs. However, Ranking Member Angie Craig (D-Minn.) and other top Democrats slammed the strategy as an attempt to "pick off" members rather than negotiating core priorities.  Major points of contention remain:  SNAP Cuts: Republicans blocked Democratic efforts to overturn previous spending cuts to the Supplemental Nutrition Assistance Program.  Trade Concerns: The bill expresses "congressional concern" regarding President Trump’s plan to increase beef imports from Argentina.  Safety Net: Significant updates to the farm safety net remain a partisan flashpoint.  Attention now shifts to the Senate, where Agriculture Chair John Boozman (R-Ark.) is expected to draft a version excluding the House's most contentious provisions to meet the 60-vote threshold for passage.

ANTHROPIC:  The Defense Department has officially designated AI startup Anthropic a supply-chain risk after the company attempted to restrict the military's use of its "Claude" model. This rare designation, typically reserved for foreign firms tied to adversaries, effectively blacklists Anthropic from the federal procurement ecosystem.  The Pentagon stated the move protects a "fundamental principle" regarding the military’s right to use technology for all lawful purposes without vendor interference in the chain of command. The conflict peaked last week when Anthropic CEO Dario Amodei informed Defense Secretary Pete Hegseth that the company would prohibit Claude from being used for domestic surveillance or autonomous weaponry.  In response, Hegseth moved to enforce the designation, which may compel all government partners to terminate ties with Anthropic. While Anthropic has signaled intent to challenge the label in court, the Pentagon maintains that such restrictions put "warfighters at risk."  Industry experts note this sets a massive precedent for how Washington will arbitrate the growing tension between AI developers' ethics and national security requirements. The outcome will likely dictate the terms of future partnerships across the entire tech sector.

INTERNET SAFETY:  The House Energy and Commerce Committee advanced the Kids Internet and Digital Safety (KIDS) Act in a 28-24 party-line vote Thursday, though it stalled on the broader COPPA 2.0 privacy bill. Chair Brett Guthrie (R-Ky.) declined to mark up COPPA 2.0, citing the need for further bipartisan negotiation, even as a stronger version passed the Senate the same day.  The approved KIDS Act consolidates nearly a dozen bills, including a version of the Kids Online Safety Act (KOSA). Key provisions include:  Mandatory Age Verification: Required for accessing sexual content and online app stores. Safety Features: New default settings for minor accounts and mandatory AI chatbot disclosures. Studies: Directs federal agencies to analyze social media's impact on youth mental health.  Democrats and advocates criticized the package as "weaker" than Senate alternatives, specifically noting the omission of a "duty of care" requirement for tech platforms. They also argued the bill’s preemption of state regulations and its privacy implications for age verification are problematic. Despite the friction, the committee also advanced Sammy’s Law and the App Store Accountability Act to the House floor.

TARIFF REFUNDS:  The Trump administration is resisting calls for "swift" refunds of $130 billion in tariffs invalidated by the Supreme Court last month. Despite the 6-3 ruling that the president exceeded his authority under the 1977 International Emergency Economic Powers Act, the White House has not established a repayment framework, prompting a surge in litigation.  Over 2,000 cases are pending at the U.S. Court of International Trade as businesses "lawyer up" to prevent claims from expiring. While an appeals court recently denied the administration’s request to delay proceedings until June, trade experts warn that requiring case-by-case litigation could overwhelm the courts for years.  Industry leaders, including the U.S. Chamber of Commerce and the American Apparel and Footwear Association, argue the administration is deliberately delaying payments. Meanwhile, Senate Democrats have introduced long-shot legislation requiring full refunds with interest.  The White House maintains it cannot act until lower courts define the process, though critics note the Justice Department previously promised refunds if the government lost. Major companies like Nissan and FedEx have already filed suit, signaling a shift from administrative hope to a prolonged "slugfest" over one of the president's signature second-term policies.

EU TRADE:  The European Parliament’s International Trade Committee voted Wednesday to keep a major EU-U.S. trade deal frozen, citing volatile transatlantic relations. A majority of political groups blocked legislation to implement the agreement, which was originally struck at President Trump’s Turnberry resort last summer.  Committee Chair Bernd Lange stated that the Parliament requires "clarity" that the U.S. remains committed to the pact. This latest postponement follows President Trump’s Tuesday threat to impose a trade embargo on Spain. During an Oval Office meeting with German Chancellor Friedrich Merz, Trump vowed to "cut off all trade" after Spain refused to allow U.S. warplanes to launch strikes on Iran from its territory.  While center-right and right-wing lawmakers pushed to fast-track the deal for a plenary vote next week, the proposal was defeated by a coalition of Social Democrats, liberals, and Greens. Jörgen Warborn of the European People’s Party criticized the delay, arguing that an "anti-Trump narrative" is being prioritized over European economic interests, risking a broader trade war.  Negotiators are scheduled to meet again on March 17 to reassess the timeline. If the committee eventually grants approval, ratification could occur during the March 25–26 plenary session.

HACKED:  The White House is coordinating with the FBI, NSA, and CISA to address a sophisticated breach of an FBI surveillance system. First detected on Feb. 17, the hack targeted an unclassified but sensitive network containing metadata from "pen register" and "trap and trace" devices, as well as personally identifiable information on law enforcement subjects.  While the FBI has not officially attributed the attack, a congressional notice revealed that hackers leveraged a commercial Internet Service Provider’s infrastructure to infiltrate the network. This technique mirrors past campaigns by Russian and Chinese state actors, specifically the "Salt Typhoon" group, which compromised U.S. telecommunications and wiretap data in 2024.  The breach marks the second major exposure of law enforcement data during the current Trump administration, following a hack of the federal judiciary’s case management system last summer. Officials are still assessing whether the compromise extends to the content of lawful wiretaps. While the White House and CISA declined specific comments, the FBI confirmed it is leveraging "all technical capabilities" to mitigate a significant counterintelligence threat that experts warn remains "very much ongoing."

TX RUN-OFF:  President Donald Trump announced Wednesday that he will soon endorse in the Texas GOP Senate runoff, signaling he will pressured the unselected candidate to withdraw. The move aims to truncate a "bruising" 12-week primary between incumbent Senator John Cornyn and Attorney General Ken Paxton to focus on defeating Democratic nominee James Talarico.  Cornyn currently holds a narrow one-point lead with 97% of votes counted. Despite the pressure, Paxton remains defiant, stating on Real America’s Voice that he owes it to Texans to stay in the race. Conversely, Senate Majority Leader John Thune has urged Trump to back Cornyn early to stabilize the seat.  The primary has been defined by high costs and personal vitriol; the NRSC previously ran ads attacking Paxton’s character, while Paxton has leaned into his "MAGA" credentials. Democrats, having coalesced around Talarico, generally view Cornyn as the more formidable general election opponent, citing Paxton’s legal scandals as a political liability. Trump’s intervention could end the intra-party fighting or further entrench the divide if his "request" for a withdrawal is ignored.

VOTERS VOTED:  The 2026 midterm cycle officially kicked off on March 3 with high-profile primary elections in Texas and North Carolina. In Texas, the marquee Republican Senate primary is heading to a May 26 runoff after incumbent John Cornyn (42%) surprised some pundits and outran Attorney General Ken Paxton (41%), while Democrats decisively rallied behind state Representative James Talarico, who defeated Representative Jasmine Crockett. North Carolina’s Senate primaries set the stage for one of the cycle's most competitive general election matchups, with former Governor Roy Cooper and former RNC Chair Michael Whatley easily clinching their respective nominations. Down-ballot, the "MAGA" influence remained potent but uneven; while Texas Governor Greg Abbott secured a landslide renomination, Representative Dan Crenshaw became the cycle's first major casualty, losing his seat to challenger Steve Toth.  Mr. Toth benefited from the support of a billionaire who wanted Crenshaw out…Texas Representative Dan Crenshaw’s primary defeat—according to reporting in Axios—was largely driven by a targeted $675,000 offensive funded by billionaire banker Robert Marling. Marling’s contributions accounted for two-thirds of a super PAC’s spending, bankrolling a wave of anti-Crenshaw ads that allowed hard-line conservative Steve Toth to erase Crenshaw's early lead.  The ousting stems from a deep-seated feud; Marling reportedly soured on Crenshaw over ideological differences and a personal dispute involving a conservative summit. Sources indicate Marling also worked to ensure President Trump remained neutral, successfully preventing an endorsement.  Crenshaw dismissed the rivalry, labeling Marling a "conspiratorial old man" whom he has never met. However, the lopsided spending in Texas' 2nd District underscores how a single megadonor can effectively end a congressional career.

SOMETHING FUN:  It goes without saying, but in a time of chaos, holding on too tight, means you lose your edge.  So let’s .38 Special offer some advice.  Keep it loose my friends…