Morning Brief: Budget Battles, Billion-Dollar Bets & ICE Busts

President Donald Trump deepens U.S. ties in the Middle East with historic economic partnerships, while domestic battles over tax cuts and Medicaid rage on in Congress. The Federal Aviation Administration calls an urgent meeting with airlines to address critical staff shortages and faulty equipment at major travel hubs, grounding thousands of flights. And, a sweeping ICE raid in Nashville nets nearly 200 illegal aliens, sparking backlash from the city’s Democratic mayor and a larger national debate on Homeland Security protocols. 

It’s Thursday, May 15, and this is the news you need to know to start your day.

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Budget Battle Continues

Topline: House Republicans negotiated Trump’s “One Big Beautiful Bill” this week in marathon sessions that began Tuesday and stretched well into Wednesday morning. Lawmakers muscled the legislation forward to prepare it for passage by the end of next week.

As budget negotiations continue to shape the bill, Congressional Republicans are focused on permanently extending Trump’s 2017 “Tax Cuts and Jobs Act.” On top of that, Republicans want to make good on Trump’s campaign promises, such as no tax on tips, and boost funding for the military and immigration enforcement.

“We’re checking all the boxes,” Speaker of the House Mike Johnson (R-LA) told Newsmax. “ [The president] promised no taxes on overtime, no taxes on Social Security, no taxes on, for example, interest on car loans that are made in America. A number of those things are woven into this bill, and we’ve made all the math work so we can do that.“

So far, Republicans have agreed on new tax exemptions for tips and overtime pay for those earning less than $160,000 annually. The government will pay $1,000 to parents for babies born through December 31, 2028. The House bill also raises the State and Local Tax (SALT) deduction from $10,000 up to $30,000, which some Republicans in blue states have said is still not enough.

However, to balance the books, the GOP must find funding offsets. For example, the bill limits itemized deductions for the 37% top bracket, and some Inflation Reduction Act tax credits for electric vehicles and green energy will be scrapped, though not entirely until 2029. The bill would also introduce work requirements for able-bodied people to access Medicaid, and would create new safeguards to prevent waste and fraud, although those reforms could face opposition in the Senate.

And… Yesterday, the White House announced an agreement that it said would generate an economic exchange worth $1.2 trillion with Qatar. As part of that deal, Qatar Airways said it plans to buy as many as 210 planes from Boeing. The U.S. has also agreed to deeper military cooperation with Qatar. Earlier this week, the president struck deals with Saudi Arabia that the White House says are worth about $600 billion.

FAA Reforms

Topline: The Trump administration is putting pressure on the Federal Aviation Administration (FAA) after several deadly plane crashes and concerns with staffing shortages.

On Wednesday, Transportation Secretary Sean Duffy testified to lawmakers on a House Appropriations subcommittee about the Transportation Department’s new budget request. He’s asking for billions of dollars to update the country’s air traffic control system, which has been the target of widespread criticism after several deadly disasters and major snarls in the system.

Hundreds of flights were grounded at Newark Liberty International Airport last week when air traffic controllers lost communications with planes for about 90 seconds. Newark needs 38 air traffic controllers – it only has 24, and five of them are on a 45-day trauma leave due to stress resulting from recent problems. Also, construction at Newark has caused about 34 flight cancellations per day. Duffy blamed the Biden administration for failing to fix a broken system.

“This did not have to be our story,” Duffy said. “Over the last four years, the last administration, they knew this was a problem. And by the way, during COVID, when people weren’t flying, that was a perfect time to fix these problems.”

On Wednesday, airlines met with the FAA to address the situation at Newark. The FAA is already working on the Newark airport — it installed a software update to prevent another outage and is slashing the number of flights for now.

Duffy has made reversing the diversity, equity, and inclusion (DEI ) hiring practices implemented under the Obama and Biden administrations a major focus and has introduced a new recruitment program to address the air traffic controller shortage. He also wants to invest in new equipment — new radios for air traffic controllers, radar on the ground, tarmac sensors, and a new flight management system to improve airspace efficiency. As he was testifying to Congress on Wednesday, Duffy’s Transportation Department announced it had just approved dozens more infrastructure grants, for a total of 405 grants worth nearly $5 billion so far. The department says it has cleared about 13% of the backlog under former Transportation Secretary Pete Buttigieg, who served during the Biden administration.

Nashville ICE Raids Nab Nearly 200 Illegals

Topline: Immigration and Customs Enforcement (ICE) carried out a week of raids in Nashville, Tennessee, arresting nearly 200 illegal aliens and prompting outrage from the city’s Democratic mayor.

A week-long ICE raid in Nashville that started on May 3 captured nearly 200 illegal aliens, many of whom have been convicted of criminal offenses. Of the 196 illegal aliens detained by ICE, 95 had prior criminal convictions or pending charges, and 31 had illegally re-entered the United States after previously being deported.

A Daily Wire investigation found that one of the illegal aliens captured is a 60-year-old Iraqi national who was convicted of rape and failed to register as a sex offender. Another is a 33-year-old from El Salvador believed to be affiliated with MS-13, a violent gang that was recently designated a foreign terror organization by the Trump administration. The government of El Salvador also suspects the man of committing aggravated murder. There’s also a Haitian male convicted of possessing meth with the intent to distribute, a Salvadoran convicted of possessing cocaine with the intent to manufacture and sell the drug, and a Guatemalan national with a conviction for aggravated assault.

Nashville Democratic Mayor Freddie O’Connell said that ICE’s immigration enforcement raids caused “deep community harms” and added that he was “heartbroken” over the federal law enforcement agency’s actions. O’Connell announced the creation of the “belonging fund,” a joint project between the city of Nashville and a local foundation to support organizations that assist illegal aliens with their childcare, transportation, and food needs. The mayor also signed an executive order requiring city employees and police to report any communications with ICE to his office.

But Nashville Legal Director Wally Dietz said that the city government can do nothing to prevent ICE from carrying out enforcement operations in Nashville. “We are powerless. We have absolutely no authority to instruct ICE not to carry out their enforcement actions…we have no authority to tell [Tennessee Highway Patrol] they cannot cooperate with ICE.”

Tricia McLaughlin, the Assistant Secretary for Public Affairs at the Department of Homeland Security, called O’Connell a “pro-open borders politician” who would “rather protect illegal aliens than American citizens.” O’Connell was also slammed by ICE acting director Todd Lyons, who said that the Nashville mayor should be thanking the federal law enforcement agency for protecting his city.