Washington, DC

1. Trump on defense
2. Dems’ affordability challenge
3. House health care vote
4. Machado White House visit?
5. Europe talks Ukraine aid
6. Firms race to SPACs

PDB: Defense policy bill heads to Trump’s desk

US releases November inflation report … RFK Jr to hold news conference at 11am … Reuters: Trump to address marijuana rescheduling

Trump defends his first year

President Donald Trump is spending the waning moments of 2025 defending the first year of his second term, as polls show deep voter dissatisfaction with the economy. He used a Wednesday address to the nation to blame Joe Biden for a host of issues while casting his own policies — from tariffs to immigration crackdowns — as wins. Trump highlighted his “big, beautiful bill,” promising that voters will feel its effects soon, and pledged “aggressive housing reform plans” in the new year. The White House is making a concerted push to more directly address the economy, but data suggests voters aren’t quite buying it: A Marist poll put Trump’s approval rating as his lowest ever. Trump will again focus on the economy on Friday in North Carolina — a senior White House official told Semafor it would be his last trip before the holidays.

— Shelby Talcott

Dems see opportunity amid econ discontent

Democrats are eager to run a midterm campaign that’s all about affordability — but despite Trump’s challenges, polls show that if they want to persuade voters who don’t like his handling of the economy, they still have some work to do. So, how do they win over that bloc? The answer isn’t simple, and it almost certainly doesn’t lie in more specific policy prescriptions, Semafor’s Elana Schor and Burgess Everett reported. It’s not that the party has zero details for what it would do differently, but those suggestions have been more thematic than in-depth. Or, in the words of Sen. Brian Schatz, D-Hawaii, Democrats are trying to avoid “internal disagreements” over hypothetical policy without becoming “a total blank slate.” He added wryly: “A midterm message that has historically been viable is, ‘Have you had enough of this sh*t yet?’”

House to vote on Dems’ health care plan

The House will take up Democrats’ proposal to extend enhanced Affordable Care Act subsidies for three years in January after frustrated moderate Republicans helped force a vote. Supporters hope the revolt, which sparked GOP criticism of Speaker Mike Johnson, could shake loose a Senate health care deal. “It won’t pass the Senate as it is,” said Sen. Josh Hawley, R-Mo., who recently voted for the same plan. “But it could be a vehicle … that gives us an opportunity to work on something — get onto it, have an open amendment process.” Odds of House passage are high: Four Republicans were able to sign the discharge petition and more signaled their support. “People were thinking [they] had their fingers crossed under the table that they could get that vote,” Rep. Scott Fitzgerald, R-Wis., said. Bicameral talks are already happening: Senators attended a Problem Solvers Caucus meeting Wednesday.

— Eleanor Mueller

WH allies talk visit for Venezuela’s Machado

Trump’s allies are working behind the scenes to set up a White House visit for Venezuelan opposition leader María Corina Machado, Semafor’s Shelby Talcott and Burgess Everett scooped. Sen. Rick Scott, R. Fla., is among those working to organize a visit, telling Semafor he’d like Machado to meet Trump. The proposal hasn’t reached the president’s desk and a senior White House official insisted “no such meeting has been scheduled.” A Machado visit would prove less controversial than other portions of Trump’s Venezuela policy, which some in Congress have scrutinized. Still, Republicans are defending Trump’s military movements, and Senate Majority Leader John Thune told Semafor he “would certainly not have a problem” with Trump seeking regime change in Venezuela, calling President Nicolás Maduro “a cancer on that continent.” It came as Maduro ordered his country’s navy to escort oil tankers, risking a confrontation with US forces sent to blockade.

Europe leaders meet to discuss Ukraine aid

European leaders gather in Brussels today to decide how to finance future support for Ukraine against the backdrop of ongoing talks to end the war. It’ll be contentious: Supporters of a plan to use frozen Russian assets to finance a loan for Ukraine face resistance from Belgium, where most of the money is held, and there’s a fierce debate about the idea’s legality, as Russia seeks $230 billion in damages. But the meeting is also an opportunity to present a united front against Russian President Vladimir Putin and impress Trump, who recently spoke of a “weak” Europe. Meanwhile, Putin’s latest remarks about Moscow’s demands in peace talks fueled fresh doubts. “The only thing Vladimir Putin understands is pressure,” Sen. Jeanne Shaheen, the top Democrat on the Senate Foreign Relations Committee, told Semafor, arguing the administration hasn’t applied enough of it.

— Morgan Chalfant

Firms seeking govt backing race to SPACs

As the SPAC boom wanes, one set of companies is still using these lightly regulated backdoor paths to a public listing for a new reason: They’re hoping to make the US government a shareholder, Semafor’s Rachyl Jones reports. Of the 25 companies that announced plans this year to go public by merging with a listed, blank-check vehicle, eight are critical materials and nuclear energy companies. And many are hoping that going public will attract the attention of the Trump administration, which has funneled federal money into listed companies seen as crucial to winning strategic battles with China over access to critical supplies and technologies, said Brandon Sun, head of SPACs at investment bank Cohen & Company Capital Markets. “The public sector support for these deals has always been there, but in the last few months, it’s really accelerated,” he said.

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Blindspot: Dignified transfer and deposition

Stories that are being largely ignored by either left-leaning or right-leaning outlets, curated with help from our partners at Ground News.

What the Left isn’t reading:  President Trump took part in a dignified transfer honoring US National Guard members recently killed in Syria.

What the Right isn’t reading: Former special counsel Jack Smith told lawmakers behind closed doors that his investigation found “proof beyond a reasonable doubt” that Trump was involved in a “criminal scheme” to overturn the 2020 presidential election results. 

Beltway Newsletters

Punchbowl News: Senate Minority Leader Chuck Schumer is keen to avoid a fresh government shutdown, saying “we’d like to get an appropriations bill done. That’s a Jan. 30 deadline … We’re trying to work with the Republicans to get it done.”

Playbook: Four House Democrats are today introducing the “Antisemitism Response and Prevention Act,” following last week’s mass shooting at a Hanukkah festival in Sydney.

Axios: “Those members need not ask me for any help in their campaigns whatsoever,” said Rep. Eric Burlison, R-Mo., after several Republican colleagues signed a discharge petition to force a House vote on expiring Obamacare subsidies.

WaPo: New York City Comptroller Brad Lander “is now running with the Mamdani momentum… behind him” in his primary bid for Congress.

White House

• President Trump confirmed that Dan Bongino is leaving the FBI.

• The White House’s new “Walk of Fame” has been annotated with Trump-esque descriptions of former presidents.
• Lawyer Alan Dershowitz told Trump that it’s “not clear” whether the Constitution would bar him from running for a third presidential term. — WSJ

Congress

• The House passed legislation 216-211 that would make it a felony for medical providers to offer transgender minors transition-related health care, Semafor’s Eleanor Mueller reports. Democratic Reps. Vicente Gonzalez and Henry Cuellar of Texas and Don Davis of North Carolina voted for the bill, while GOP Reps. Mike Kennedy of Utah, Brian Fitzpatrick of Pennsylvania, Gabe Evans of Colorado, and Mike Lawler of New York voted against it.
• The Senate passed the mammoth defense policy bill in a 77-20 vote, sending it to President Trump’s desk to be signed today. Among its provisions: requiring the Pentagon to release footage of military strikes on alleged drug boats in the Caribbean and repealing Caesar Act sanctions on Syria.
• Sen. Ted Cruz, R-Texas, and Maria Cantwell, D-Wash., secured passage of a bipartisan aviation safety bill to overwrite language in the defense bill they feared could cause another crash around DC.