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    After Flurry of Cabinet Picks, Trump Rethinks Candidates for Treasury Secretary

    President-elect Donald J. Trump is expected to invite the contenders for the role, including Kevin Warsh and Marc Rowan, to Mar-a-Lago this week.President-elect Donald J. Trump is eyeing a new candidate for Treasury Secretary amid internal debate over who should have the role: the former Federal Reserve governor Kevin Warsh.Mr. Trump is also considering the Wall Street billionaire Marc Rowan.Mr. Trump had been expected to pick either Howard Lutnick, the chief executive of the Wall Street firm Cantor Fitzgerald, or Scott Bessent, the founder of the investment firm Key Square Capital Management and a former money manager for George Soros. And he had been seen as likely to make the selection late last week.But he has been having second thoughts about the top two candidates, and has slowed down his selection process. He is expected to invite the contenders to interview with him this week at Mar-a-Lago.Mr. Lutnick, who has been running Mr. Trump’s transition operation, has gotten on Mr. Trump’s nerves lately. Mr. Trump has privately expressed frustration that Mr. Lutnick has been hanging around him too much and that he has been manipulating the transition process for his own ends. A person familiar with the process, who spoke on condition of anonymity, described the battle between Mr. Lutnick and Mr. Bessent as a knife fight, with Mr. Lutnick as the primary aggressor.Mr. Bessent is said to still be under consideration, and has also been raised by people in Mr. Trump’s economic circles as a possible contender to lead the White House’s National Economic Council. Elon Musk, a close adviser to the president-elect, on Sunday called Mr. Bessent a “business-as-usual” choice for Treasury secretary in a post on his social media platform, X, while throwing his support behind Mr. Lutnick.Mr. Trump and Mr. Lutnick met on Sunday, and it wasn’t immediately clear what came of the discussion, according to two people briefed on the matter, who spoke on condition of anonymity to discuss personnel matters. Mr. Bessent has also met with Mr. Trump. The other two — as well as any other new names that emerge — are likely to be asked to meet with Mr. Trump this week, according to one of the people briefed on the matter.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    U.S. Expands Sanctions on Russia as G7 Leaders Gather

    The Biden administration is taking new measures aimed at stopping China from helping the Kremlin sustain its war effort against Ukraine. U.S. officials hope European nations will take similar steps.The Biden administration announced a series of new financial sanctions Wednesday aimed at interrupting the fast-growing technological links between China and Russia that American officials believe are behind a broad effort to rebuild and modernize Russia’s military during its war with Ukraine.The actions were announced just as President Biden was leaving the country for a meeting in Italy of the Group of 7 industrialized economies, where a renewed effort to degrade the Russian economy will be at the top of his agenda.The effort has grown far more complicated in the past six or eight months after China, which previously had sat largely on the sidelines, has stepped up its shipments of microchips, optical systems for drones and components for advanced weaponry, U.S. officials said. But so far Beijing appears to have heeded Mr. Biden’s warning against shipping weapons to Russia, even as the United States and NATO continue to arm Ukraine.Announcing the new sanctions, Treasury Secretary Janet L. Yellen said in a statement that “Russia’s war economy is deeply isolated from the international financial system, leaving the Kremlin’s military desperate for access to the outside world.”At the heart of the new measures is an expansion of “secondary” sanctions that give the United States the power to blacklist any bank around the world that does business with Russian financial institutions already facing sanctions. This is intended to deter smaller banks, especially in places like China, from helping Russia finance its war effort.The Treasury Department also imposed restrictions on the stock exchange in Moscow in hopes of preventing foreign investors from propping up Russian defense companies. The sanctions hit several Chinese companies that are accused of helping Russia gain access to critical military equipment such as electronics, lasers and drone components.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Supreme Court Rejects Challenge to Consumer Watchdog’s Funding

    A decision against the agency, the Consumer Financial Protection Bureau, could have cast doubt on all of its regulations and enforcement actions.The Supreme Court rejected a challenge on Thursday to the way the Consumer Financial Protection Bureau is funded, one that could have hobbled the bureau and advanced a central goal of the conservative legal movement: limiting the power of independent agencies.The vote was 7 to 2, with Justice Clarence Thomas writing the majority opinion.Had the bureau lost, the court’s ruling might have cast doubt on every regulation and enforcement action it had taken in its 13 years of existence, including ones concerning mortgages, credit cards, consumer loans and banking.The central question in the case was whether the way Congress chose to fund the bureau had violated the appropriations clause of the Constitution, which says that “no money shall be drawn from the Treasury, but in consequence of appropriations made by law.”Justice Thomas said the mechanism was constitutional.“Under the appropriations clause,” he wrote, “an appropriation is simply a law that authorizes expenditures from a specified source of public money for designated purposes. The statute that provides the bureau’s funding meets these requirements. We therefore conclude that the bureau’s funding mechanism does not violate the appropriations clause.”Justice Samuel A. Alito Jr., joined by Justice Neil M. Gorsuch, dissented.The bureau, created after the financial crisis as part of the 2010 Dodd-Frank Act, is funded by the Federal Reserve System, in an amount determined by the bureau so long as the sum does not exceed 12 percent of the system’s operating expenses. In the 2022 fiscal year, the agency requested and received $641.5 million of the $734 million available.A unanimous three-judge panel of the U.S. Court of Appeals for the Fifth Circuit, in New Orleans, ruled in 2022 that the bureau’s funding method ran afoul of the appropriations clause.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    U.S. Imposes Major New Sanctions on Russia, Targeting Finance and Defense

    The Biden administration, responding to the death of Aleksei A. Navalny, unveiled its largest sanctions package to date as the war in Ukraine enters its third year.The United States on Friday unleashed its most extensive package of sanctions on Russia since the invasion of Ukraine two years ago, targeting Russia’s financial sector and military-industrial complex in a broad effort to degrade the Kremlin’s war machine.The sweeping sanctions come as the war enters its third year, and exactly one week after the death of the opposition leader Aleksei A. Navalny, for which the Biden administration blames President Vladimir V. Putin of Russia. With Congress struggling to reach an agreement on providing more aid to Ukraine, the United States has become increasingly reliant on financial tools to slow Russia’s ability to restock its military supplies and to put pressure on its economy.Announcing the sanctions on Friday, President Biden reiterated his calls on Congress to provide more funding to Ukraine before it is too late.“The failure to support Ukraine at this critical moment will not be forgotten,” he said in a statement.The president added that the sanctions would further restrict Russia’s energy revenues and crack down on its sanctions evasion efforts across multiple continents.“If Putin does not pay the price for his death and destruction, he will keep going,” Mr. Biden said. “And the costs to the United States — along with our NATO allies and partners in Europe and around the world — will rise.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Trump’s Indictment and What’s Next

    The fallout will be widespread, with ramifications for the 2024 presidential race, policymaking and more.Donald Trump is likely to turn himself in on Tuesday.Christopher Lee for The New York TimesWhat you need to know about Trump’s indictment A Manhattan grand jury has indicted Donald Trump over his role in paying hush money to a porn star, making him the first former president to face criminal charges. It’s a pivotal moment in U.S. politics — there was an audible on-air gasp when Fox News anchors reported the news on Thursday — with ramifications for the 2024 presidential race, policymaking and more.Here are the most important things to note so far.Mr. Trump is likely to turn himself in on Tuesday, which will see the former president be fingerprinted and photographed in a New York State courthouse. (Prosecutors for the Manhattan district attorney, Alvin Bragg, wanted Trump to surrender on Friday, but were rebuffed by the former president’s lawyers, according to Politico.) Afterward, Mr. Trump would be arraigned and would finally learn the charges against him and be given the chance to enter a plea. The former president has consistently denied all wrongdoing.Mr. Trump and his advisers, who were at his Mar-a-Lago resort in Florida on Thursday, were caught off guard by the announcement, believing some news reports that suggested an indictment wouldn’t come for weeks. The former president blasted the news, describing it in all-caps as “an attack on our country the likes of which has never been seen before” on Truth Social, the social network he founded.The case revolves in part around the Trump family business. Charges by the Manhattan district attorney arise from a five-year investigation into a $130,000 payment by the fixer Michael Cohen to the porn actress Stormy Daniels in 2016, before the presidential election that year.The Trump Organization reimbursed Mr. Cohen — but in internal documents, company executives falsely recorded the payment as a legal expense and invented a bogus legal retainer with Mr. Cohen to justify them. Falsifying business records is a crime in New York. But to make it a felony charge, prosecutors may tie the crime to a second one: violating election law.The fallout will be wide, and unpredictable. Democrats and Republicans alike used the news to underpin a flurry of fund-raising efforts. (Among them, of course, was Mr. Trump’s own presidential campaign.)It’s unclear how the indictment will affect the 2024 race. Mr. Trump, who can run for president despite facing criminal charges, is leading in early polls. Still, his potential opponents for the Republican nomination — including Gov. Ron DeSantis of Florida and Mike Pence, Mr. Trump’s former vice president — harshly criticized the move. House Republicans have also flocked to his defense, potentially increasing the chances of gridlock in Washington.But while the charges may give Mr. Trump a boost in the G.O.P. primary, they could also hurt his standing in the general election against President Biden.HERE’S WHAT’S HAPPENING European inflation remains stubbornly high. Consumer prices rose 6.9 percent on an annualized basis across the eurozone in March, below analysts’ forecasts. But core inflation accelerated, a sign that Europe’s cost-of-living crisis is not easing. In the U.S., investors will be watching for data on personal consumption expenditure inflation, set to be released at 8:30 a.m.A Swiss court convicts bankers of helping a Putin ally hide millions. Four officials from the Swiss office of Gazprombank were accused of failing to conduct due diligence on accounts opened by a concert cellist who has been nicknamed “Putin’s wallet.” The case was seen as a test of Switzerland’s willingness to discipline bankers for wrongdoing.More Gulf nations back Jared Kushner’s investment firm. Sovereign funds in the United Arab Emirates and Qatar have poured hundreds of millions into Affinity Partners, The Times reports. The revelation underscores efforts by Mr. Kushner, Donald Trump’s son-in-law, and others in the Trump orbit to profit from close ties they forged with Middle Eastern powers while in the White House.Lawyers for a woman accusing Leon Black of rape ask to quit the case. A lawyer from the Wigdor firm, who had been representing Guzel Ganieva, told a court on Thursday that the attorney-client relationship had broken down and that Ms. Ganieva wanted to represent herself. It’s the latest twist in the lawsuit by Ms. Ganieva, who has said she had an affair with the private equity mogul that turned abusive; Black has denied wrongdoing.Richard Branson’s satellite-launching company is halting operations. Virgin Orbit said that it failed to raise much-needed capital, and would cease business for now and lay off nearly all of its roughly 660 employees. It signals the potential end of the company after it suffered a failed rocket launch in January.A brutal quarter for dealmaking Bankers and lawyers began the year with modest expectations for M.&A. Rising interest rates, concerns about the economy and costly financing had undercut what had been a booming market for deals.But the first three months of 2023 proved to be even more difficult than most would have guessed, as the volume of transactions fell to its lowest level in a decade.About 11,366 deals worth $550.5 billion were announced in the quarter, according to data from Refinitiv. That’s a 22 percent drop in the number of transactions — and a 45 percent plunge by value. That’s bad news for bankers who had been hoping for any improvement from a dismal second half of 2022. (They’ve already had to grapple with another bit of bad news: Wall Street bonuses were down 26 percent last year, according to New York State’s comptroller.)The outlook for improvement isn’t clear. While the Nasdaq is climbing, there’s enough uncertainty and volatility in the market — particularly given concerns around banks — to deter many would-be acquirers from doing risky deals. Then again, three months ago some dealmakers told DealBook that they expected their business to pick up in the middle of 2023.Here’s how the league tables look: JPMorgan Chase, Goldman Sachs and the boutique Centerview Partners led investment banks, with a combined 58 percent of the market. And Sullivan & Cromwell, Wachtell Lipton and Goodwin Procter were the big winners among law firms, with 46 percent market share.Biden wants new rules for lenders The Biden administration on Thursday called on regulators to toughen oversight of America’s midsize banks in the wake of the crisis triggered by the collapse of Silicon Valley Bank, as policymakers shift from containing the turmoil to figuring out how to prevent it from happening again.Much of the focus was on reviving measures included in the Dodd-Frank law passed in the aftermath of the 2008 financial crisis. These include reapplying stress tests and capital requirements used for the nation’s systemically important banks to midsize lenders, after they were rolled back in 2018 during the Trump administration.Here are the new rules the White House wants to see imposed:Tougher capital requirements and oversight of lenders. At the top of the list is the reinstatement of liquidity requirements (and stress tests on that liquidity) for lenders with $100 billion to $250 billion in assets like SVB and Signature Bank, which also collapsed.Plans for managing a bank failure and annual capital stress tests. The administration sees the need for more rigorous capital-testing measures designed to see if banks “can withstand high interest rates and other stresses.”It appears the White House will go it alone on these proposals. “There’s no need for congressional action in order to authorize the agencies to take any of these steps,” an administration official told journalists.Lobbyists are already pushing back, saying more oversight would drive up costs and hurt the economy. “It would be unfortunate if the response to bad management and delinquent supervision at SVB were additional regulation on all banks,” Greg Baer, the president and C.E.O. of the Bank Policy Institute, said in a statement.Elsewhere in banking:In the hours after Silicon Valley Bank’s failure on March 10, Jamie Dimon, C.E.O. of JPMorgan Chase, expressed his reluctance to get involved in another banking rescue effort. Dimon changed his position four days later as he and Janet Yellen, the Treasury secretary, spearheaded a plan for the country’s biggest banks to inject $30 billion in deposits into smaller ailing ones. “If my government asks me to help, I’ll help,” Mr. Dimon, 67, told The Times.“We are definitely working with technology which is going to be incredibly beneficial, but clearly has the potential to cause harm in a deep way.” — Sundar Pichai, C.E.O. of Google, on the need for the tech industry to responsibly develop artificial intelligence tools, like chatbots, before rolling them out commercially.Carl Icahn and Jesus Illumina, the DNA sequencing company, stepped up its fight with the activist investor Carl Icahn on Thursday, pushing back against his efforts to secure three board seats and force it to spin off Grail, a maker of cancer-detection tests that it bought for $8 billion. But it is a reference to Jesus that the company says he made that is garnering much attention.The company said that it had nearly reached a settlement with Mr. Icahn before their fight went public, in a preliminary proxy statement. It added that he had no plan for the company beyond putting his nominees on the board.But Illumina also said Mr. Icahn told its executives that he “would not even support Jesus Christ” as an independent candidate over one of his own nominees because “my guys answer to me.”Experts say Mr. Icahn’s comments could be used against him in future fights. Board members are supposed to act as stewards of a company, not agents for a single investor. “If any disputes along these lines arise for public companies where Icahn has nominees on the board, shareholders are going to use this as exhibit A for allegations that the directors followed Icahn rather than their own judgment,” said Ann Lipton, a professor of law at Tulane University.Mr. Icahn doesn’t seem to care. He said the comments were “taken out of context” and the company broke an agreement to keep negotiations private.“It was a very poor choice of words and he is usually much smarter than that,” said John Coffee, a corporate governance professor at Columbia Law School. “But he can always say that he was misinterpreted and recognizes that directors owe their duties to all the shareholders.”THE SPEED READ DealsBed Bath & Beyond ended a deal to take money from the hedge fund Hudson Bay Capital after reporting another quarter of declining sales, and will instead try to raise $300 million by selling new stock. (WSJ)Apollo Global Management reportedly plans to bid nearly $2.8 billion for the aerospace parts maker Arconic. (Bloomberg)Marshall, the maker of guitar amps favored by Jimi Hendrix and Eric Clapton, will sell itself to Zound, a Swedish speaker maker that it had partnered with. (The Verge)PolicyFinland cleared its last hurdle to joining NATO after Turkey approved its entry into the security alliance. (NYT)The F.T.C. is reportedly investigating America’s largest alcohol distributor over how wine and liquor are priced across the U.S. (Politico)“Lobbyists Begin Chipping Away at Biden’s $80 Billion I.R.S. Overhaul” (NYT)Best of the restNetflix revamped its film division, as the streaming giant prepares to make fewer movies to cut costs. (Bloomberg)“A.I., Brain Scans and Cameras: The Spread of Police Surveillance Tech” (NYT)A jury cleared Gwyneth Paltrow of fault in a 2016 ski crash and awarded her the $1 she had requested in damages. (NYT)“Do We Know How Many People Are Working From Home?” (NYT)We’d like your feedback! Please email thoughts and suggestions to dealbook@nytimes.com. More

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    Your Friday Briefing: Ardern’s Exit

    Also, the U.S. hit its debt limit and Western allies discuss sending tanks to Ukraine.Jacinda Ardern faced numerous crises in office, including the 2019 Christchurch terrorist attack and the coronavirus pandemic.Kerry Marshall/Getty ImagesArdern bows outAfter more than five years in power, Jacinda Ardern said that she would resign as New Zealand’s prime minister in early February, before the end of her second term. In a surprise announcement, she said that she no longer had “enough in the tank” to do the job.New Zealand’s youngest prime minister in 150 years, Ardern, 42, became a global emblem of liberalism. Her pronounced feminism and emphasis on a “politics of kindness” set her apart from her more bombastic male counterparts.But she faced deepening political challenges at home, with an election looming in October. Her Labour Party has been lagging behind the center-right National Party in polls for months. This weekend, the party will elect a new leader, but Ardern has no obvious successor.Quotable: “I believe that leading a country is the most privileged job anyone could ever have, but also one of the more challenging,” Ardern said. “You cannot and should not do it unless you have a full tank, plus a bit in reserve for those unexpected challenges.”Analysis: The pandemic may have been her undoing, our Sydney bureau chief writes. Her administration’s reliance on extended lockdowns hurt the economy and spurred an online backlash. Threats against her increased as she became a target for those who saw vaccine mandates as a rights violation.Raising the cap would not authorize any new spending — it would only allow the U.S. to finance existing obligations. Kenny Holston/The New York TimesU.S. hits its debt limitThe U.S. reached its $31.4 trillion debt cap yesterday, which is the total amount it can borrow. The country is now gearing up for a bitter partisan battle over raising the cap.Failure to do so could be catastrophic. It would mean that the U.S. would not be able to pay its bills and may be unable to meet its financial obligations, possibly even defaulting on its debt. That could plunge the U.S. into a deep recession and has the potential to cause a global financial crisis.The Treasury Department said it would begin a series of accounting maneuvers, known as “extraordinary measures,” which are designed to keep the U.S. from breaching the limit. Janet Yellen, the Treasury secretary, also asked lawmakers yesterday to raise or suspend the cap to delay a default.The State of the WarHelicopter Crash: A helicopter crashed in a fireball in a Kyiv suburb, killing a member of President Volodymyr Zelensky’s cabinet and more than a dozen other people, and dealing a blow to Ukraine’s wartime leadership.Western Military Aid: Kyiv is redoubling its pleas to allies for more advanced weapons ahead of an expected new Russian offensive. The Netherlands said that it was considering sending a Patriot missile system, and the Biden administration is warming to the idea of providing the weapons that Ukraine needs to target the Crimean Peninsula.Dnipro: A Russian strike on an apartment complex in the central Ukrainian city was one of the deadliest for civilians away from the front line since the war began. The attack prompted renewed calls for Moscow to be charged with war crimes.Politics: Newly empowered House Republicans are poised to again leverage the debt limit to make demands on President Biden. Biden, for his part, has said he will not negotiate over the limit, and that lawmakers should lift it, with no strings attached, to cover spending that the previous Congress has authorized.What’s next: The extraordinary measures should allow the government to keep paying workers and others through early June. It’s unlikely that the crisis will find a resolution smoothly or soon, and months of partisan brinkmanship loom.The Strykers could be delivered within weeks. Andreea Campeanu/Getty ImagesWill Ukraine get more tanks?Lloyd Austin, the U.S. defense secretary, will lead a meeting of officials from about 50 countries at a U.S. air base in Germany today that will focus on how to provide Ukraine the weapons it needs, including advanced Western tanks.Ukraine is redoubling its pleas for more advanced weapons, like tanks and air defense missiles, ahead of an expected Russian springtime offensive that could be decisive in the war.At the meeting, the U.S. is expected to announce plans to send Ukraine nearly 100 Stryker combat vehicles, as part of a roughly $2.5 billion weapons package, officials said. Britain has committed to sending 14 Challenger battle tanks.Now, all eyes are on Germany. The country has been under pressure to supply or authorize the export of its Leopard 2 tanks, which are among the most coveted by Kyiv. Austin met with Germany’s new defense minister, Boris Pistorius, yesterday to try to reach an agreement over sending the tanks to Ukraine.Quotable: “In a war like it is being fought, every type of equipment is necessary,” Adm. Rob Bauer, a senior NATO official, said. “And the Russians are fighting with tanks. So the Ukrainians need tanks as well.”THE LATEST NEWSAround the WorldProtestors chanted slogans like “retirement before arthritis.”Lewis Joly/Associated PressOver one million people went on strike across France to protest a plan to raise the legal retirement age to 64 from 62.Alec Baldwin will be charged with involuntary manslaughter after the fatal shooting on the “Rust” film set, prosecutors announced.A stampede outside an Iraqi soccer stadium killed at least one person. Fans were angry to discover that they had been sold fake tickets.The only H.I.V. vaccine in advanced trials has failed. Progress could be set back by five years, experts said.In another upset at the Australian Open, Casper Ruud of Norway — the No. 2 seed — lost to an unseeded American, Jenson Brooksby.The Week in Culture“All Quiet on the Western Front” is a surprise front-runner. Netflix“All Quiet on the Western Front,” a German-language remake set in World War I, leads the BAFTA nominees.The British Museum and Greece are getting closer to a deal on returning the so-called Elgin Marbles to Athens.Yukihiro Takahashi was a leading figure in Japan’s pop scene for nearly 50 years, most prominently with the Yellow Magic Orchestra. He died at 70.A Morning ReadDoctors greet patients as if they were their own grandparents. Chang W. Lee/The New York TimesOn hundreds of small islands scattered off South Korea’s coast, communities rely on government-run hospital ships that bring free medical services. The ships have been around for decades, but their necessity has increased in recent years as the population ages.The means of supplying medical help for older citizens has become a growing concern in East Asian countries and beyond the region.SPOTLIGHT ON AFRICAA tiger rivets South AfricaSouth Africa is never boring. At the moment, there’s an energy crisis and plenty of political drama. But people here had something more unusual to talk about this week: A tiger on the loose in a residential area south of Johannesburg.Sheba, an eight-year-old female, escaped from her enclosure on a private farm in the Walkerville area last weekend. The news spread panic in the neighborhood and gripped South Africans throughout the nation. Sheba mauled a 39-year-old man, and killed two dogs and a pig. Even with a police helicopter circling over the area, she evaded searchers until the early hours of Wednesday morning, when she was shot and killed.South Africa is a nature lover’s paradise, but every now and again two worlds collide. In 2021, a lost hippopotamus turned up in northern Johannesburg and wandered through backyards, cooling itself in swimming pools until it was captured. In Pringle Bay, a vacation spot outside Cape Town, troops of baboons terrorized visitors last year. — Lynsey Chutel, a Briefings writer in Johannesburg.PLAY, WATCH, EATWhat to CookLinda Xiao for The New York TimesFor Lunar New Year, here are some easy, festive wonton recipes.What to ReadPaul Theroux suggests books to take you through Boston.What to WatchLi Xiaofeng’s film “Back to the Wharf” turns a crime story into an allegory about the moral cost of China’s modernization.What to Listen toTracks by Miley Cyrus and Vagabon are among the 13 new songs on our playlist.Where to GoCheck out Seoul’s hidden, cozy cocktail bars.Now Time to PlayPlay the Mini Crossword, and a clue: Happen (five letters).Here are the Wordle and the Spelling Bee.You can find all our puzzles here.That’s it for today’s briefing. Best wishes to those who are celebrating Lunar New Year on Sunday. — AmeliaP.S. Paul Mozur will be our new global technology correspondent. Congratulations, Paul!“The Daily” is about why the U.S. is sending weapons to Ukraine.We’d welcome your feedback. You can reach us at briefing@nytimes.com. More

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    Biden’s Agenda Hangs in the Balance if Republicans Take Congress

    On a wide array of issues like abortion, taxes, race and judges, President Biden’s opportunities would shrink as Republicans vow to dismantle much of his legislative accomplishments.WASHINGTON — For President Biden, the Dreaming-of-F.D.R. phase of his presidency may end in little more than a week. If Republicans capture one or both houses of Congress in midterm elections, as polling suggests, Mr. Biden’s domestic agenda will suddenly transform from a quest for a New Deal 2.0 to trench warfare defending the accomplishments of his first two years in office.On a wide array of issues like abortion, taxes, race and judges, Mr. Biden’s opportunities would invariably shrink as he focuses less on advancing the expansive policy goals that have animated his administration and more on preserving the newly constructed economic and social welfare architecture that Republicans have vowed to dismantle.While the president and Democratic leaders have not publicly given up on the possibility of hanging onto Congress in the balloting that concludes on Nov. 8, privately they are pessimistic and bracing for two years of grinding partisan conflict.In addition to efforts to block or reverse Mr. Biden’s domestic initiatives, Republican control of either house would result in a flurry of subpoenas and investigations of the administration that would define the relationship between the White House and Congress.Mr. Biden’s aspirations to codify abortion rights, expand access to child care and college, address racial discrimination in policing, install more like-minded judges and guarantee voting rights would all become more difficult, if not impossible, to achieve.For their part, Republicans aim to roll back Mr. Biden’s corporate tax increases, climate change spending, student loan forgiveness and I.R.S. expansion targeting wealthy tax cheats.Beyond simply reversing the president’s policies, Republicans promise to advance their own initiatives to further cut taxes and spending, ban transgender women from playing in women’s sports, restrict access to abortion, protect gun rights, crack down on immigration, add more police to the streets and promote energy production, much of which would be hard to pass over a Senate filibuster, much less Mr. Biden’s veto.A change of management on Capitol Hill would represent a marked shift for Mr. Biden, who spent 36 years as a senator and eight years as vice president mastering the arts of legislative maneuvering. Despite razor-thin margins, he has pushed through a raft of far-reaching bills since taking office last year. They include a $1.9 trillion pandemic stimulus package, a $1 trillion plan to upgrade the nation’s roads, bridges and other infrastructure, a $739 billion package to fight climate change and curb prescription drug prices and a $250 billion program to boost the semiconductor industry.A significant number of Republicans supported some of the spending, including for infrastructure and semiconductors, but party leaders have argued that the open checkbook represents the worst of Democratic free-spending proclivities and helped push inflation to its highest rate in 40 years.In past eras, divided government in Washington has at times led to uncomfortable but meaningful compromises, including major tax and Social Security deals under President Ronald Reagan; landmark deficit reduction, clean air and civil rights legislation under President George H.W. Bush; and welfare overhaul and balanced budget measures under President Bill Clinton. No doubt Mr. Biden, who regularly boasts of the bipartisan deals he has forged, would seek areas of common ground.The State of the 2022 Midterm ElectionsElection Day is Tuesday, Nov. 8.Bracing for a Red Wave: Republicans were already favored to flip the House. Now they are looking to run up the score by vying for seats in deep-blue states.Pennsylvania Senate Race: The debate performance by Lt. Gov. John Fetterman, who is still recovering from a stroke, has thrust questions of health to the center of the pivotal race and raised Democratic anxieties.G.O.P. Inflation Plans: Republicans are riding a wave of anger over inflation as they seek to recapture Congress, but few economists expect their proposals to bring down rising prices.Polling Analysis: If these poll results keep up, everything from a Democratic hold in the Senate and a narrow House majority to a total G.O.P. rout becomes imaginable, writes Nate Cohn, The Times’s chief political analyst.But today’s political atmosphere is radically more polarized than it was in the 1980s and 1990s, making it harder to imagine a Democratic president and Republican legislature coming together on areas of major disagreement except in a national crisis. The prospects of accord may be even more distant in case of a comeback campaign by former President Donald J. Trump, who would pressure his party to resist Mr. Biden at every turn.— Peter BakerHere are some major areas where the two sides would clash:TaxesMr. Biden imposed new taxes on corporations, including a new minimum tax on large multinationals like Amazon and a tax on stock buybacks, to help fund the climate and health priorities in the Inflation Reduction Act, which he signed this summer. He also increased spending on the Internal Revenue Service, to raise revenues by cracking down on companies and high earners that cheat on their taxes.Republicans want to repeal all those measures while passing further tax cuts, including extending some of the reductions for businesses and individuals passed in 2017 under Mr. Trump that are set to expire over the next few years.They have promised to reduce federal spending. Some prominent House conservatives want to reduce expenditures on safety-net programs like Medicaid and supplemental nutritional assistance, and to reduce future spending on Medicare and Social Security for some beneficiaries, which Mr. Biden opposes.— Jim TankersleyMr. Biden imposed new taxes on corporations like Amazon and a tax on stock buybacks, to help fund the health and climate bill he signed this summer.Chang W. Lee/The New York TimesClimate changeTo curb global warming, Mr. Biden has set an ambitious goal of cutting America’s greenhouse gas emissions roughly in half by 2030.The measure he signed this summer included $370 billion in incentives for electric utilities to increase their reliance on low-emission energy sources like solar and nuclear, for consumers to buy electric vehicles and for businesses to invest in energy efficiency. His Environmental Protection Agency has moved to limit emissions of methane, a potent greenhouse gas, and is preparing more regulations of the energy sector.Republicans opposed those climate efforts, and are set to mount congressional investigations into many of them. They could also seek to unwind some of the spending from the newly signed climate law and will likely challenge future regulations. They will also push legislation to speed up fossil fuel development by reducing federal regulation of new drilling projects.— Jim TankersleyHealth CareAfter a decade of elections with health care near the top of voter priorities, the big federal health programs are less central in this election. Republicans are not focused on repealing the Affordable Care Act, sometimes called Obamacare, or making major changes to Medicare and Medicaid in the short term. If Republicans retake majorities, they plan extensive oversight of Mr. Biden’s response to the Covid-19 pandemic, however, and much of the spending that accompanied it. They also hope to consider smaller initiatives, such as expanding access to telemedicine in Medicare and improving price transparency in health care, building on Trump administration initiatives that many Democrats also embrace. Without a president who can sign their more conservative-leaning bills or large enough majorities to overcome a veto, Republicans are likely to focus on legislative efforts that at least some Democrats can support..css-1v2n82w{max-width:600px;width:calc(100% – 40px);margin-top:20px;margin-bottom:25px;height:auto;margin-left:auto;margin-right:auto;font-family:nyt-franklin;color:var(–color-content-secondary,#363636);}@media only screen and (max-width:480px){.css-1v2n82w{margin-left:20px;margin-right:20px;}}@media only screen and (min-width:1024px){.css-1v2n82w{width:600px;}}.css-161d8zr{width:40px;margin-bottom:18px;text-align:left;margin-left:0;color:var(–color-content-primary,#121212);border:1px solid var(–color-content-primary,#121212);}@media only screen and (max-width:480px){.css-161d8zr{width:30px;margin-bottom:15px;}}.css-tjtq43{line-height:25px;}@media only screen and (max-width:480px){.css-tjtq43{line-height:24px;}}.css-x1k33h{font-family:nyt-cheltenham;font-size:19px;font-weight:700;line-height:25px;}.css-1hvpcve{font-size:17px;font-weight:300;line-height:25px;}.css-1hvpcve em{font-style:italic;}.css-1hvpcve strong{font-weight:bold;}.css-1hvpcve a{font-weight:500;color:var(–color-content-secondary,#363636);}.css-1c013uz{margin-top:18px;margin-bottom:22px;}@media only screen and (max-width:480px){.css-1c013uz{font-size:14px;margin-top:15px;margin-bottom:20px;}}.css-1c013uz a{color:var(–color-signal-editorial,#326891);-webkit-text-decoration:underline;text-decoration:underline;font-weight:500;font-size:16px;}@media only screen and (max-width:480px){.css-1c013uz a{font-size:13px;}}.css-1c013uz a:hover{-webkit-text-decoration:none;text-decoration:none;}How Times reporters cover politics. We rely on our journalists to be independent observers. So while Times staff members may vote, they are not allowed to endorse or campaign for candidates or political causes. This includes participating in marches or rallies in support of a movement or giving money to, or raising money for, any political candidate or election cause.Learn more about our process.If Democrats retain control, they are likely to pursue a similar set of less polarized issues. Mr. Biden already tried and failed to pass major structural changes to Medicare and Medicaid as part of the Inflation Reduction Act, the new law meant in part to bring down prescription drug prices.— Margot Sanger-KatzJudgesAfter a record-breaking start at filling vacancies on the federal bench, the Biden administration’s aggressive push to remake the courts would be slowed considerably — if not entirely stalled — by a Republican takeover of the Senate.Senator Mitch McConnell of Kentucky, the current and likely future Republican leader, has demonstrated his skill at thwarting judicial nominations. “If it did happen, Senator McConnell has made it pretty clear that he would not be very eager to confirm President Biden’s nominees and would do anything he could to delay filling seats until he could get a different president,” said Russ Feingold, a former Democratic senator from Wisconsin and head of the American Constitution Society. “He usually follows through on those statements and threats.”To date, the Senate has confirmed 84 judges nominated by Mr. Biden, including a Supreme Court justice, 25 appeals court judges and 58 district court judges — the most in decades in the first two years of a president’s term. The White House has advanced a diverse set of candidates, focusing on underrepresented ethnicities as well as those with less typical professional backgrounds like public defenders and civil rights lawyers.Even if Republicans make package deals to advance judicial nominees as has been done in the past, nominees who are considered more progressive would encounter extreme difficulties in a Republican-controlled Senate. Bracing for a slowdown, Mr. Feingold’s organization is urging Senate Democrats to confirm at least 30 more judges before the newly elected Congress takes office.— Carl HulseAbortionMr. Biden has promised to enshrine into law the national abortion protections that were repealed when the Supreme Court overturned Roe v. Wade if voters increase the Democratic margin in the Senate. “The only way it’s going to happen is if the American people make it happen,” he has said in his appeals to the public.Republicans, who once saw abortion restrictions as a galvanizing issue within the party, are now in open disagreement about how far those should go. Strict or near-total bans on abortions have become unpopular with Republican voters.Senator Lindsey Graham of South Carolina is pushing for a national ban on abortions after 15 weeks of pregnancy, but his proposal is unpopular even with senior Republicans, including Mr. McConnell, who consider it politically risky and a contradiction to the let-the-states-decide position the party had long articulated. Mr. Biden would certainly veto any stand-alone bill with such a limit even if it did land on his desk.— Katie RogersRepublicans, who once saw abortion restrictions as a galvanizing issue within the party, are now in open disagreement about how far those should go.Callaghan O’Hare for The New York TimesStudent LoansMr. Biden’s order canceling up to $20,000 of student-loan debt for as many as 40 million borrowers has already been targeted in a lawsuit filed by six Republican-led states, which claim the president overstepped his executive authority in issuing the policy on his own.A Republican-controlled Congress could try to halt the policy by including language in a potential spending package declaring that Mr. Biden lacks authority to move forward with the debt relief. But Mike Pierce, the executive director of the student borrower protection center, said other parts of Mr. Biden’s student loan agenda are at greater risk, including a plan to reduce payments on undergraduate loans to 5 percent of discretionary income, down from 10 percent to 15 percent in many existing plans.Implementing the new system would draw money from an appropriated budget that could be targeted by congressional Republicans. “There’s money that goes to the Education Department to administer the student loan programs and you can see that budget being a part of negotiations with Republicans,” Mr. Pierce said.— Zolan Kanno-YoungsRaceMr. Biden has worked to put racial equity at the center of his agenda, ensuring that billions of dollars in government spending are focused on minorities and poor women. Some efforts, including a plan to forgive the debts of Black and other minority farmers, have run into lawsuits filed by white farmers who questioned whether the government could offer debt relief based on race. Republican lawmakers have echoed the criticism. The president directed federal agencies to ensure that 40 percent of investments for clean energy, transit, housing and work force development reach disadvantaged or marginalized communities.Republican lawmakers have signaled they would try to stall the equity agenda through congressional investigations. The policies are also likely to be the focus of legislative battles and political attacks against the administration. Top Republicans on the House Transportation and Infrastructure Committee sent a letter to the administration last month accusing Mr. Biden of misusing his authority “in a broad, crosscutting fashion” by requiring that a portion of federal funding go to minority communities.Republicans on the House Financial Services Committee launched an investigation this month into a Treasury Department committee tasked with reviewing aspects of the economy that have harmed communities of color. The lawmakers said the council “would distract it from its core responsibilities which include ensuring a level playing field for all Americans.”— Zolan Kanno-YoungsI.R.S.The Biden administration is in the midst of an $80 billion bulk-up of the Internal Revenue Service, the tax collection agency that Republicans love to hate.Although the overhaul of the I.R.S. is in its early stages, the Treasury Department, which oversees the agency, has set ambitious goals for improving customer service and responsiveness to taxpayers. They have been trying to ramp up hiring and clear a backlog of millions of unprocessed tax returns.For years, Republicans have made it their mission to neuter the I.R.S. They are expected to use any leverage that they gain in the elections to scale back the agency’s funding.They have suggested that the 87,000 new hires that the I.R.S. plans to make will become a “shadow army” intended to target conservatives, and with Republicans controlling oversight committees there will be an intense spotlight on how the money is being spent. If Republicans retake the Senate, they will also have an opportunity to block Mr. Biden’s eventual nominee to be the next I.R.S. commissioner. (Treasury recently announced that the deputy commissioner would become acting commissioner in November.)— Alan RappeportEntitlementsEager to find an issue that will resonate with voters, Mr. Biden has revived a traditional Democratic campaign attack, arguing that keeping his party in power would protect Social Security and Medicare from Republican cutbacks. In a speech at the White House last month, the president warned that Republicans will put the social safety net programs on the “chopping block” if they take power.Any efforts from Republicans to enact changes to the entitlement programs over the next two years would be subject to Mr. Biden’s veto power.The long-term solvency of the programs is in doubt as the trust funds that support them are facing shortfalls in the next two decades.Republicans have not outlined a unified plan for how to deal with entitlements lately, but some have called for restructuring them or scaling them back. This, they say, would preserve them for the future. The most prominent proposal has come from Senator Rick Scott, Republican of Florida, that would allow Social Security and Medicare to “sunset” if Congress did not pass new legislation to extend them. Mr. McConnell has disavowed aspects of Mr. Scott’s agenda.— Alan RappeportConsumer ProtectionWith legislative options limited, Mr. Biden has been looking to executive branch agencies to help ease the pain that Americans are feeling from inflation. On Thursday, he touted a move by the Consumer Financial Protection Bureau to crack down on so-called “junk fees” that banks charge to consumers for overdrafting their accounts or depositing checks that bounce.Joined by Rohit Chopra, the director of the C.F.P.B., Mr. Biden said that the agency would be going after a wide range of unnecessary costs that are imposed on Americans by banks.But if Republicans have their way, the agency could see its powers dramatically diminished. A federal appeals court ruling this month said that the bureau’s funding that comes through the Federal Reserve is unconstitutional, calling into question its power to regulate the finance industry.The lawsuit could take years to play out, but House Republicans have already said that they want to bring the independent agency under the congressional appropriations process. The Trump administration tried to zero out the bureau’s budget, so Republican control could eventually mean that it lacks the resources to be a rigorous regulator.— Alan Rappeport More