Senate Funds Most of DHS, Including Pay for TSA

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0:33The Senate funds most of DHS, putting an end in sight to the chaos at airports. Plus, the Pentagon weighs sending 10 ,000 ground troops to the Middle East. And struggling spirits makers gamble they could be stronger together.

0:47Siobhan Hughes:This industry is under siege, and they have to find ways to right the ship. One way of doing that is to merge in hopes of generating a lot of cost savings. Because right now, demand is falling for all sorts of reasons. It's Friday, March 27th. I'm Luke Vargas for The Wall Street Journal. And here is the AM edition of What's News, the top headlines and business stories moving our world today. Senate Republicans and Democrats have agreed to fund most of the Department of Homeland Security, a step that could quickly tee up an end to the crisis at airports on the very day that airport security workers had been set to miss another paycheck.

1:25Congressional reporter Siobhan Hughes is working the late shift on Capitol Hill. Siobhan, sounds like we've got a deal here coming in just after 2 a.m.

1:34Siobhan Hughes:We have a deal. And in fact, the Senate has just passed legislation to fund the Department of Homeland Security, or at least most of it, which is on course to end this standoff. The expectation is the House picks this up in the next few hours before President Trump signs the measure into law. Simon, I know Democrats had wanted to use this funding holdup to secure reforms to immigration operations, making sure that officers wore body cameras as well as identification, that they took off their masks. They also wanted agents to need judicial warrants before entering homes. Did they get any of that?

2:08And I know you said there that elements of DHS aren't being funded here. Which ones?

2:12Siobhan Hughes:So what is left out is funding for ICE, Immigration and Customs Enforcement, and then Border Patrol, a separate function also within the Department of Homeland Security. The Republicans said they are going to try to fund those two units separately through a special procedural tactic called budget reconciliation, where they only need a simple majority of the Senate to clear that. And as for reforms, Democrats did not win any changes to the ways the Trump administration practices immigration enforcement. And as Senate Majority Leader John Thune told us, that ship has sailed. And according to him, Democrats can kiss that opportunity goodbye.

2:50How is that going over with Democratic leaders and the rank and file?

2:54Siobhan Hughes:Democrats, particularly the progressive wing, I think would see this as a win because Democrats are in the minority in Congress. They have no power to do anything. And basically what they have succeeded in doing is taking a chunk out of the immigration enforcement budget. And for a party that has really been on its backheel, this counts as an accomplishment of sorts. Chuck Schumer, the Senate Democratic leader, in the meantime, said that he was proud that his caucus had stuck together and resisted funding for immigration agencies without significant reforms. And for his part, he said he thought Democrats would have some opportunities for such victories ahead.

3:32Like what, Siobhan? Is that likely?

3:34Siobhan Hughes:For now, that truly appears to be dead in the water. It does not appear that Democrats have any avenues to win reforms. And to really put a pin in that, Congress is about to go on recess for two weeks. Siobhan, thanks so much for the update. Get some rest. Thank you. The Pentagon is considering sending up to 10 ,000 more ground troops to the Middle East as President Trump weighs his next steps in the Iran war. We report that it's unclear exactly where the troops would go, but that they'd likely be within striking distance of Iran and Karg Island, its crucial oil export hub. Iran's UN ambassador in Geneva, Ali Bahraini, said his country was prepared for any next moves from the U.S.

4:16Siobhan Hughes:We are ready for any scenario, including any kind of ground operation. I think that is a place that we will be able to defeat them. And I think that would be one of the big mistakes if they take that decision. A spokesman for U.S. Central Command declined to comment, while a White House press secretary said that troop deployment announcements would come from the Pentagon and that President Trump always had all military options at his disposal. Meanwhile, Journal of Politics reporter Sabrina Rodriguez says some misgivings about the war in Iran were on display yesterday as the Conservative Political Action Conference, or CPAC, kicked off its annual gathering in Texas.

5:08Siobhan Hughes:Overwhelmingly in the speeches, there's a focus on really hyping up the administration. We got to make Iran free again, and we're going to make sure that America stands strong by their side. But in conversations with attendees, especially younger attendees, something that I've consistently heard is frustrations and anxiety over the state of the economy. The fact that the administration is focusing so much on foreign affairs, particularly when it comes to the war in Iran. Some are supportive of the president's initial actions, but even those are worried about this dragging on and really want to see this resolved quickly.

5:49Siobhan Hughes:When I heard they were going into that area, I thought it might be a long, drawn-out thing. I'm really hoping that it cleans up fast. Now, you know, granted, Venezuela, that was a clean operation, in and out, no casualties. But, you know, I know there's like rumors or whatnot that we could be sending troops over to Iran. And that, to me, would not be full betrayal. Sabrina says that President Trump's decision not to attend CPAC for the first time in a decade has lowered the excitement level at the gathering, but that among Republicans vying for higher office in November's midterms, his presence was still felt.

6:27Siobhan Hughes:Beyond CPAC being one of the most prominent gatherings for conservative activists, it's an opportunity for Republican elected officials, Republican candidates to get to test out material, get to, you know, hone in on what are some of the themes that we're going to be seeing in the upcoming elections. And even with Trump not being present, so much of the message coming from speakers is really praise on Trump, focus on Trump, alignment with Trump. One speaker, for example, was Michael Watley, who's the Republican candidate running for the competitive U.S. Senate seat in North Carolina. And he said he's going to be aligning himself with President Trump and that that's hugely important to him in his candidacy.

7:15Siobhan Hughes:You know, and when you look at elections, good policy is good politics. Without a doubt. And President Trump's agenda is really true the agenda that's driving us right now. CPAC runs through Saturday. Coming up, Anthropic wins an injunction in its court battle with the Trump administration, and we'll explore the potential drinks industry tie-up between the makers of Absolute and Jack Daniels after the break.

7:44Siobhan Hughes:This episode is sponsored by Morgan Stanley's Thoughts on the Market. Today's financial markets move fast. Morgan Stanley moves faster with their daily podcast, Thoughts on the Market. Thoughts on the Market covers daily trends across the global investment landscape with actionable insights from Morgan Stanley's leading economists and strategists. And with most episodes under five minutes long, staying informed has never been easier. Listen and subscribe to Thoughts on the Market wherever you get your podcasts.

8:38in its standoff over military use of AI, describing them as, quote, classic illegal First Amendment retaliation. The government has indicated it would appeal an injunction. Meanwhile, the Trump administration is planning to require higher wages for foreign workers coming to the U.S. on skilled worker visas that are popular with big tech companies. Under a proposal from the Labor Department, pay floors for foreign workers in the H-1B program would rise between 21 and 33 percent, depending on their experience. Critics have argued that employers have abused the program and other visa categories by hiring foreign workers that they can pay less than U.S.

9:16employees. In a first for a sitting president, the Treasury Department says that President Trump's signature will appear on new U.S. paper currency, honoring the country's 250th anniversary later this year, with it sitting beside the signature of Treasury Secretary Scott Besant. Typically, it's the treasurer's signature that appears on bills alongside the treasury secretary.

9:41Elon Musk's SpaceX is expected to file paperwork with regulators for its highly anticipated IPO in the coming days, targeting a mid-June market debut. We report that the rocket and satellite company is expected to raise between$40 and$80 billion, and that Musk aims to deliver a third or more of shares sold in the offering to individual investors well above the typical 10%. SpaceX is also planning to give preferential treatment to investors in Musk's other companies, including Tesla, and to invite would-be investors to visit manufacturing facilities and possibly witness rocket launches. As the drinks industry grapples with slowing sales, Paris-based drinks giant Pernod Ricard and Louisville-based Jack Daniels maker Brown Foreman are in talks to merge.

10:25The Journal's Ben Dummett says that the families behind the two companies would likely each retain significant stakes in any deal, which could be just weeks away.

10:33Siobhan Hughes:Together, the combined entity could be worth upwards of$30 billion. That ultimately depends on how the market reacts to the news that they are in talks. Last night, we saw Perneau stock fall in the U.S., whereas we saw Brown Foreman stock rise. But it just underscores that this industry is under siege and they have to find ways to right the ship. One way of doing that is to merge in hopes of generating a lot of cost savings. Because right now, demand is falling for all sorts of reasons. People are tightening their purse strings. They don't want to spend as much money on premium brands. The tariffs have played a big role.

11:06Siobhan Hughes:Canada, for example, essentially took all of U.S. liquor off its shelves because of the Trump tariffs. So it's a tough time for the industry. And finally, it's about to cost you a little bit more to Netflix and chill. Man, that joke is old. Netflix is raising prices across all three of its tiers, with standard plans increasing by a dollar and the monthly cost of its premium package jumping by two. Netflix in January said it surpassed 325 million paid members and attributed strong Q4 results, among other things, to increases in prices. And that's it for What's News for this Friday morning. Additional sound in this episode was from Reuters.

11:45Today's show was produced by Hattie Moyer. Our supervising producer was Daniel Bach, and I'm Luke Vargas for The Wall Street Journal. We will be back tonight with a new show. Otherwise, have a great weekend, and thanks for listening.

12:17Siobhan Hughes:in the world of markets and investing. From the Fed's moves to market bubbles, we dive into the biggest deals, key players, and business news ahead. If you're looking for more news and tools that you can use to help navigate the markets, consider becoming a subscriber to The Wall Street Journal. Visit subscribe.wsj.com slash takeontheweek to subscribe now.