Washington, DC

1. Trump’s Iran messenger
2. More troops deployed
3. Opposition to war funding
4. New deal on insulin costs
5. DHS shutdown drags on
6. New deposit insurance bill
7. White House’s AI optimism
8. Ukraine war talks

PDB: Democrats may delay Iran resolution

Trump speaks at NRCC fundraiser … WSJ: Mediators aim for US-Iran meeting by Thursday … Trump set to skip CPAC in Dallas

Bessent plays point on Iran messaging

Presidents have historically leaned on their national security officials to inform the public about their wars. But as President Donald Trump scrambles to contain market fallout from Iran, his administration is increasingly tapping Treasury Secretary Scott Bessent to make its case. One former Treasury official said the decision to book Bessent on the Sunday shows was “weird” and that “it signals dysfunction.” But others argue it’s a good idea. Among them: Sen. Thom Tillis, R-N.C., who told Semafor he was surprised “at first” but now “believe[s], because Scott is very well-regarded in economic circles, that it probably makes sense.” Bessent is “very good at what he does,” Sen. Mike Rounds, R-S.D., said. Not everyone is so thrilled: Sen. Lisa Murkowski, R-Alaska, said “whether it’s how it’s being communicated in the media or how it’s being communicated here in the Congress, I think [the administration’s information-sharing on Iran] is lacking.”

— Eleanor Mueller

US deploys thousands more troops to Gulf

The US deployed more troops to the Gulf, even as Trump expressed optimism that a deal with Iran was close. The US vice president and secretary of state are leading the talks, Trump said, and Washington yesterday sent Iran a 15-point peace proposal, delivered via Pakistan, though Iran has denied negotiations have taken place. Stocks rose and oil fell on the prospects of an end to the fighting. The arrival of 2,000 paratroopers and a Marine amphibious warfare group in the region nevertheless suggests that Trump is maintaining the option of an escalation of hostilities, while Saudi Arabia’s leader — wary of leaving a job half-done — told Trump that the Iranian regime should be destroyed, The New York Times reported.

Progressives oppose funding ‘illegal’ war

The Progressive Caucus is lining up to oppose any additional funding for the war in Iran. The bloc is staking out its position even before the Trump administration sends a formal budget request to Congress, with Caucus Chair Rep. Greg Casar, D-Texas, telling Semafor: “Democrats should unite against funding this illegal war and force Republicans to answer to the American people for it.” Democrats have started to unite in opposition against more funding, leading some Republicans to float using reconciliation to pass what could be a $200 billion package to fund the war and reinforce the military without Democratic votes. Some, like Sen. Susan Collins, R-Maine, don’t want to use the filibuster-bypassing method. Still, some Democrats in purple districts or those who want to support troops already in the field could face a difficult vote ahead.

— Nicholas Wu

Senators reach deal to cap insulin costs

A long-elusive deal on capping the monthly price of insulin at $35 has finally come together in the Senate, Semafor’s Burgess Everett reports. The agreement marries an approach from Collins and Sen. Jeanne Shaheen, D-N.H., with that of Sens. John Kennedy, R-La., and Raphael Warnock, D-Ga. The quartet comprises two formerly competing factions who are now compromising on legislation that caps the price of insulin at $35 for the insured and establishes a pilot program in 10 states to reduce insulin costs for the uninsured — a middle ground from Warnock and Kennedy’s prior bill. Shaheen, who is retiring, is feeling a particular urgency to finish the job and get it to the president’s desk. “I would really like to be able to leave the Senate thinking that we had helped to address insulin costs for a lot of Americans,” Shaheen said.

Semafor’s Liz Hoffman, Rohan Goswami, and Eleanor Mueller will interview the Trump administration’s top antitrust officials, including DOJ’s Omeed Assefi, FTC Chair Andrew Ferguson, and FCC Chair Brendan Carr, as well the UK’s competition chief, at an event in Washington, DC Thursday. You can RSVP to attend here.

Talks continue over DHS shutdown

Markwayne Mullin is spending his first full day in the Trump administration presiding over a shuttered Department of Homeland Security. While Senate Minority Leader Chuck Schumer indicated to colleagues that he sees potential for a deal to reopen the department this week, Democrats are still pressing for concessions. “Could I support funding everything else in DHS, except ICE enforcement? Yes. Do I think it should come with reforms? Yes. Because just dealing with the funding doesn’t address the excesses that we’ve seen,” Shaheen told Semafor. Democrats will send another counteroffer to Republicans, some of whom are talking about using reconciliation as an unlikely path to fund the department. Trump predicted he wouldn’t be “happy” with any deal Republicans reach with Democrats. The shutdown’s effects, including torturous airport security lines, will be front and center today as DHS officials testify before the House Homeland Security Committee.

Lawmakers introduce deposit insurance bill

A bipartisan pair of senators will introduce legislation Wednesday that would give the Federal Deposit Insurance Corporation six months to decide whether to raise its cap on deposit insurance as high as $5 million for some accounts. The bill from Sens. Bill Hagerty, R-Tenn., and Angela Alsobrooks, D-Md., first reported by Semafor, is far narrower than their earlier proposal to guarantee non-interest-bearing transaction accounts up to $10 million, which big banks panned as “a solution in search of a problem.” Under the new approach, the FDIC could select its own threshold between $250,000, where it sits right now, and $5 million. Treasury Department officials have signaled their support, people familiar with the talks told Semafor, and Sens. Jim Banks, R-Ind., Catherine Cortez Masto, D-Nev., Cindy Hyde-Smith, R-Miss., and Ruben Gallego, D-Ariz., have signed on. Rep. Frank Lucas, R-Okla., will introduce companion legislation in the House.

White House doubles down on AI bill

The White House is holding out hope for a bipartisan deal on artificial intelligence legislation this year despite Democratic opposition to its framework. “We have to find a way to create a bipartisan piece of legislation that can pass both houses of Congress,” Michael Kratsios, Office of Science and Technology Policy director, said at Tuesday’s Hill and Valley Forum. While Kratsios called it a “big challenge,” he insisted the administration is “very optimistic we can try to get something done this year.” Trump’s AI czar, David Sacks, later acknowledged progressive pushback to data centers “has really been a struggle.” GOP lawmakers, for their part, are all in: House Speaker Mike Johnson told attendees “inaction is unacceptable” (though he did not provide a timeline for taking up any bill).

— Eleanor Mueller

Ukraine war still rages

Senators will quiz State Department officials on Ukraine today, as the Iran war extinguishes any fleeting hope of progress on talks to end that conflict. Senate Foreign Relations Committee members are set to receive a closed-door briefing on the war from senior State Department officials, just a day after US-Ukraine talks wrapped in Florida. Ukrainian President Volodymyr Zelenskyy is working to get peace talks back on track, after Russia asserted they were in a “situational pause” because of Iran and later intensified its attacks on Ukraine. Zelenskyy also cited “irrefutable evidence” of Moscow providing intelligence support to Tehran, despite Trump envoy Steve Witkoff trusting Moscow’s earlier denial. Meanwhile, the US’ European allies will refocus on Ukraine during this week’s G7 summit in France (though the Iran conflict will also be a central topic, according to a French diplomat).

— Morgan Chalfant

Blindspot: Data center and pipeline

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: A former Republican state representative in Illinois explains why the city council in Joliet overwhelmingly approved plans to build a data center there in a recent vote.

What the Right isn’t reading: California sued to block the Trump administration from restarting a contested oil pipeline.

This April, Howard Lutnick, US Secretary of Commerce, will join global leaders at Semafor World Economy — the largest gathering of top CEOs and officials in the United States — to sit down with Semafor editors for conversations on the forces shaping world markets, emerging technologies, and geopolitics. See the full lineup of speakers, including Global Advisory Board members, Fortune 500 CEOs, and officials from the US and across the G20.

Applications for Semafor World Economy Principals are now open — apply now.