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The Fifth Newsletter

🎯 Trump, Week Two.

Trump's second-week actions showcase an effort to replace the federal government with loyalists who will enact his most egregious policies without question.

Huma Razvi

Huma Razvi

— 8 min read
🎯 Trump, Week Two.

Before we get to last week, here are a few notes for today:

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"The tariffs, if sustained, could cause inflation to significantly worsen, threatening the trust that many voters placed in Trump to lower the prices of groceries, gasoline, housing, autos and other goods as he promised. They also risked throwing the global economy and Trump’s political mandate into turmoil just two weeks into his second term." - The Associated Press
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USAID GONE FOR GOOD?

With Trump's approval, Elon Musk says he's shutting down USAID, the U.S. government's humanitarian arm and the world's largest provider of food aid. USAID staff were told not to report to work, and its website and social media accounts are deactivated.

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"A group of about eight DOGE officials entered the USAID building Saturday and demanded access to every door and floor, despite only a few of them having security clearance, according to a Senate Democratic staff member who spoke on the condition of anonymity to describe the incident.

When USAID personnel attempted to block access to some areas, DOGE officials threatened to call federal marshals, the aide said. The DOGE officials were eventually given access to 'secure spaces' including the security office."

. . .

“The episode over the weekend had added to the speculation that Trump would attempt to abolish the agency or merge it into the State Department and underscores the role of unelected figures — led by Musk, the richest man in the world — in the administration’s push to remake the federal government. It also highlights the new administration’s more transactional view of global engagement and its determination to refocus public spending on activities that yield tangible impacts for U.S. citizens.” - The Washington Post

The White House is considering transferring USAID's responsibilities to the State Department. However, aid officials argue this isn't feasible: "The State Department doesn't have the capacity, the expertise, the training to do that kind of work. It is a completely separate line of effort that is undertaken on the ground," a former senior USAID official says.

More here on how the Trump White House is changing standards for foreign aid. 

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WIRED on a concerning trend of government websites being taken down for unknown reasons.

LAST WEEK

Monday, January 27

Trump announces a freeze on all federal financial assistance, including congressionally approved grants and loans, effective 5 p.m. the next day. This affects everything from disaster relief to education and housing programs. The administration claims these programs represent $3 trillion in "wasteful spending" from the government's $10 trillion budget—a figure experts cannot verify. Trump wants federal agencies to audit their spending to ensure alignment with his priorities.

A memo from The Office of Management and Budget (OMB) states: "Financial assistance should be dedicated to advancing Administration priorities... The use of Federal resources to advance Marxist equity, transgenderism, and green new deal social engineering policies is a waste of taxpayer dollars that does not improve the day-to-day lives of those we serve."

Experts find the memo's language unclear and confusing, causing panic across government agencies.

The outcry is immediate, with millions—including some Republicans and Trump voters—worried that even a temporary pause could create chaos, particularly for low-income families dependent on these programs. Legally, Trump lacks the authority to cut or pause congressionally approved funds under the Impoundment Control Act of 1974, which prevents the executive branch from withholding allocated money. Trump seeks to overturn this law, which was originally enacted to check presidential overreach after Nixon attempted to withhold federal funds. Critics warn that revoking the act could destabilize the balance of power between Congress and the presidency.

Several state attorneys general successfully sue to block the order when a federal judge issues a temporary stay. The White House then rescinds the memo Monday night.

Also on Monday, Trump:

- Bans transgender individuals from military service, directing Defense Secretary Pete Hegseth to present an implementation plan within 30 days. This order faces likely legal challenges, as military leaders testified in 2018 that transgender service members posed "few problems."

- Orders construction of a U.S. Iron Dome—similar in name to Israel's missile defense system but without clear implementation plans. The New York Times reports that while promising new defense measures, the administration has cut funding for programs with similar goals: "But in its drive to shut down programs it believes could be creations of the so-called deep state, the administration wants to cut off funding for many programs that seek to reduce the chances of an attack on the United States — an attack that could very well come in forms other than a missile launched from North Korea, China or Russia."

Tuesday, January 28

Wednesday, January 29

Thursday, January 30

Following a deadly midair collision between a commercial plane and military helicopter that kills 67 people Wednesday night, Trump blames diversity, equity and inclusion (DEI) programs for the crash.

During Thursday's press conference, he also accuses Presidents Biden and Obama of lowering air traffic controller requirements to include people with physical disabilities or mental illness—a claim that's false. The actual issue stems from a longstanding shortage of air traffic controllers due to job stress. While Biden and Obama tried to expand the applicant pool, they maintained strict requirements. Critics note that Trump, VP Vance, and other White House officials focus on political attacks while recovery efforts are ongoing and the investigation has barely begun.

Fact-check on Trump's claims here.

More from Thursday:

Friday, January 31

  • Acting Treasury Secretary David Lebryk announces his sudden retirement following conflicts with Musk's DOGE team over access to a payment system controlling more than $6 trillion in government funds. The system, which handles payments like Social Security, is accessible to only a few non-political career officials. The Washington Post reports: "It is unclear precisely why Musk's team sought access to those systems. But both Musk and the Trump administration more broadly have sought to control spending in ways that far exceed efforts by their predecessors and have alarmed legal experts."
  • Trump fires more than a dozen agency inspectors general late Friday night, concerning experts and lawmakers—including Republicans—who say the move violates legal requirements. These watchdogs require Senate confirmation and Congress must receive 30 days' notice before removal. "They serve indefinite terms and typically span administrations to insulate them from shifts in political winds. A president can remove them but must notify both chambers of Congress in advance."
  • Federal workers are instructed to remove pronouns from email signatures and use only legal names. "The directive to remove nicknames appears directed toward transgender workers who have not yet legally changed their names, essentially requiring them to use their 'deadname' or their name before transitioning."

OTHER DEVELOPMENTS

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