The Trump White House instructed the Pentagon to release the hold imposed by the Biden administration on the supply of 2,000-pound bombs to Israel, three Israeli officials told Axios.

Why it matters: President Biden's decision to halt the delivery of one shipment of 2,000-pound bombs last May triggered one of the biggest crises the U.S-Israel relationship has faced during the 15-month war in Gaza.

State of play: The Israeli government was notified by the Pentagon about the release on Friday, an Israeli official said.

• The officials said that 1,800 MK-84 bombs, which were held in storage in the U.S., will be put on a ship and delivered to Israel in the coming days.
• The White House didn't immediately respond to questions about the release of the bombs.

Zoom in: The hold — which Biden used to protest Israel's invasion of Rafah — became a political symbol much more than a military operational issue, and was used by Israeli Prime Minister Benjamin Netanyahu to mobilize Republicans against Biden.

• The Biden administration was concerned that Israel's use of the 2,000-pound bombs in densely populated areas of Gaza would cause significant civilian casualties.
• Netanyahu and his loyalists in Israel and the U.S. used Biden's decision to falsely claim there was a U.S. "arms embargo" on Israel.
• Biden's decision also generated significant criticism from the Jewish community in the U.S., which is mostly Democratic leaning.
• On the other hand, the hold did little to diminish progressives' criticism of Biden over his support for Israel.

What they're saying: The outgoing Israeli ambassador to the U.S. Mike Herzog told Axios a week ago that Trump was expected to release the bombs.

• "We believe that Trump is going to release, at the beginning of his term, the munitions that haven't been released until now by the Biden administration," Herzog said in an interview last Friday.

The Senate voted 59-34 Saturday to confirm South Dakota Gov. Kristi Noem as head of the Department of Homeland Security

Why it matters: Noem, a Trump loyalist and immigration hardliner, will play a crucial role in implementing President Trump's immigration policies, including his plans to carry out mass deportations and shut down the border.

• The role also places Noem in charge of FEMA — a part of DHS— which Trump has proposed eliminating to force states to do more disaster relief independently.

Catch up quick: The Senate Homeland Security and Governmental Affairs Committee voted 13-2 Monday in favor of her nomination.

• Noem, 53, was the first governor to deploy state National Guard troops to the U.S.-Mexico border in Texas.

Go deeper: ICE returns to calling immigrants "aliens"

President Trump fired at least 12 inspectors general across the federal government Friday night, multiple outlets reported.

The big picture: The terminations, the latest in a slew of government shakeups since Trump's inauguration, appear to be in violation of federal law requiring 30-day congressional notice of intent to fire a Senate-confirmed inspector general.

• The Washington Post, which was first to report on the firings, said the departments impacted include Defense, State, Transportation, Veterans Affairs, Housing and Urban Development, Interior, Energy, Commerce, Agriculture and the Environmental Protection Agency.

Zoom in: The Justice Department's inspector general was spared, the New York Times reported, citing three anonymous sources with knowledge of the situation.

• The Department of Veterans Affairs' inspector general, Michael Missal sent an email to staff that was shared with Axios.
• "All, I wanted to let you know that I was informed tonight by the White House that I had been fired as the inspector general," Missal wrote on Friday.
• "My understanding is that a number of other inspectors general were also fired."

White House press secretary Karoline Leavitt has not yet responded to Axios' request for comment.

Editor's note: This is a developing story. Please check back for updates.

After touring war-zone-like wildfire devastation Friday, President Trump plans to act as soon as Monday to bring federal regulatory relief to help Angelenos clean up and rebuild.

Why it matters: Trump was moved by talking to people who aren't being allowed to even see the remnants of their houses. Aides are researching requirements the White House can waive, or California rules that can be overridden, to get homeowners back and rebuilt quicker.

Trump is drawing on expertise about the California Environmental Quality Act and the California Coastal Commission, which'll play a massive role in residents' ability to rebuild, one of the sources said.

• Trump is "tapping into his history of property development and regulation knowledge," the source added.

Context: During a stop to view flood damage in North Carolina before heading to California, Trump told reporters that disaster funding for LA will be contingent on changes to state voting laws and water-management policy.

• "I want to see two things in Los Angeles," he said. "Voter ID, so that the people have a chance to vote, and I want to see the water be released and come down into Los Angeles and throughout the state. Those are the two things. After that, I will be the greatest president that California ... has ever seen."

Zoom out: In his first second-term trip, Trump surveyed disaster zones in LA and North Carolina, which is still recovering from Hurricane Helene, AP reports.

• Trump flew over several LA neighborhoods in Marine One. Then, he and the first lady landed in the Pacific Palisades and visited a street where all the houses burned down, speaking with police officers and residents.

"We're going to need your support. We're going to need your help," Calif. Gov. Gavin Newsom told Trump. "You were there for us during COVID. I don't forget that, and I have all the expectations we'll be able to work together to get a speedy recovery."

Four Israeli women soldiers who were kidnapped by Hamas during the Oct. 7 terror attack and held in Gaza were released on Saturday morning local time.

Why it matters: This was the second set of hostages released since the Israel-Hamas ceasefire came into effect a week ago. Seven hostages have been released so far as part of the deal.

• However, the Israeli prime minister's office accused Hamas of violating the deal by not releasing a civilian woman who remains in captivity.
• As a result, Israel said it won't allow Palestinian civilians to move to the northern Gaza strip — a process which was supposed to begin on Saturday — until the civilian woman is released.
• The return of Palestinian civilians to northern Gaza is one of the key deliverables Hamas demanded as part of the deal.

Driving the news: The four hostages who have been released are Daniella Gilboa, Liri Albag, Naama Levy and Karina Ariev.

• On Oct. 7 they were stationed in a military outpost near the Gaza border that was taken over by Hamas militants.
• Videos of them being taken hostage by Hamas militants became one of the iconic images of Oct. 7.
• Hamas held a ceremony on Saturday in the Gaza central square and paraded the four women soldiers, dressed in military uniform, before handing them over to the Red Cross.

The other side: Israel released on Saturday 200 Palestinian prisoners in return for the release of the four women soldiers.

• 120 of those prisoners were serving life sentences for killing Israelis.
• 70 of the prisoners who were released on Saturday were not allowed to return to the West Bank and were exiled to Gaza or Egypt for at least three years.

Behind the scenes: In recent days, Israeli officials became concerned that Hamas would not fully implement the agreement and release Arbel Yehud, a civilian women who was kidnapped on Oct. 7.

• According to the agreement, civilian women were supposed to be released before soldiers.
• Israeli officials say Yehud isn't held by Hamas, but by a faction affiliated with the Palestinian Islamic Jihad. But Hamas committed to release her as part of the deal.
• On Friday, when her name wasn't on the list Hamas gave of the hostages that were expected to be released the next day, the Israeli government protested to the Qatari mediators and warned it was a violation.
• After consulting with the Israeli negotiations team on Friday night, Prime Minister Benjamin Netanyahu decided to move forward with the planned prisoner release on Saturday.
• But after the four women soldiers were in Israeli territory he announced that Israel would not allow the passage of civilians to the north of the Strip until Yehud was released.

The latest: The Islamic Jihad falsely claimed on Saturday that Yehud was a soldier and therefore wasn't supposed to be released.

• Hamas sources told Al-Jazeera Yehud is alive and will be released in the next round of hostage releases next Saturday.
• Israel asked the Trump administration to demand that Qatar and Egypt press Hamas to fix the violation of the hostage deal and release Yehud.
• Israeli officials said the request was conveyed to U.S. envoy Steve Witkoff.

The White House celebrated Saturday's release but pressed for additional work to release the remaining hostages in a statement.

• "Today the world celebrates as President Trump secured the release of four more Israeli hostages who were, for far too long, held against their will by Hamas in horrific conditions," the White House said.
• "The United States will continue with its great partner Israel to push for the release of all remaining hostages and the pursuit of peace throughout the region."

Editor's note: This story has been updated with a statement from the White House.

Secretary of Defense Pete Hegseth won confirmation Friday night with a tie-breaking vote from Vice President Vance — who also gave crucial tactical advice when the nomination was in crisis.

Why it matters: Scandal doesn't stick to President Trump. The trait seems to be shared by at least the first of his most controversial Cabinet picks, who even Vance was counting out last month.

• "Pete isn't 100% dead. But he might be 90% dead," Vance said at the start of December, according to a transition official who heard the remark.
• Hegseth's nomination was on life support at the time, as he was getting wrecked in the press for alleged sexual misconduct and alcohol abuse.
• Trump was courting Florida Gov. Ron DeSantis as a possible replacement, and some GOP lawmakers thought Hegseth was going the way of former Rep. Matt Gaetz's nomination as attorney general.

Behind the scenes: Trump told Hegseth to fight. Vance told the nominee to attack the allegations head-on and to get on TV.

• Donald Trump Jr. then rallied a network of online MAGA influencers to come to Hegseth's defense.
• Hegseth took the advice. He began his turnaround with a defiant televised gaggle with reporters on Dec. 5.
• Trump loved it.

Hegseth spent hours over the next several weeks meeting with Senate Republicans, and meeting with them again.

• He swore he wouldn't drink on the job. He said he did support women serving in the military, despite past comments to the contrary. He denied every allegation of sexual misconduct.

Between the lines: It wasn't enough to win over Sens. Susan Collins (R-Me.) or Lisa Murkowski (R-Alaska), who cited many of the scandalous reports that plagued Hegseth's nomination as contributing to their "no" votes.

• It also failed to win over former Senate GOP leader Mitch McConnell (R-Ky.), who put out a long statement suggesting Hegseth wasn't qualified for the job.
• But Hegseth managed to keep support from other feared swing voters like Sens. Thom Tillis, Todd Young (R-Ind.) and John Curtis (R-Utah).

What to watch: Tulsi Gabbard, Kash Patel and Robert F. Kennedy Jr. are next in the hot seat.

• All three have confirmation hearings on Thursday.

School leaders across the U.S. are working to reassure parents about potential immigration enforcement on campuses after the Trump administration reversed a long-standing policy discouraging enforcement in "sensitive" areas.

Why it matters: The mere possibility of immigration enforcement on campus could cause widespread fear, leading some students to skip school. This would disrupt their education and threaten school funding, which is often tied to attendance.

Catch up quick: The Trump administration announced on Tuesday that it was ending the policy of avoiding arrests in churches, schools, hospitals, funerals, weddings, and public demonstrations.

• "Criminals will no longer be able to hide in America's schools and churches to avoid arrest," the Department of Homeland Security said in a statement.
• "The Trump Administration will not tie the hands of our brave law enforcement, and instead trusts them to use common sense."

Context: Children in the U.S. have a right to public education regardless of immigration status, meaning schools don't turn back — and in most cases, don't track — whether a student is in the country without authorization.

Zoom in: Some school districts are taking proactive steps to protect students and families, outlining policies that limit cooperation with immigration authorities and reinforce campus safety measures:

• Denver Public Schools, a district with roughly 89,000 students, said on Jan. 14 that principals should deny entry to any government official who arrives without prior appointments or legitimate school business and also initiate "secure perimeter" protocols, locking all exterior doors and halting all entries or exits from school buildings.
• The Salt Lake City School District has urged parents to update emergency contact information and reiterated that it doesn't track students' immigration status and will not report students to immigration authorities.
• The Philadelphia School District said school staff are instructed not to provide Immigration and Customs Enforcement (ICE) officers with any information about students, families or employees, nor will they be allowed in schools without approval from district lawyers.
• Last month, San Diego Unified School District board adopted a resolution saying the district will not assist ICE in the "enforcement of federal civil immigration law" and won't allow access to its facilities or personnel unless officers have a warrant.

Reality check: The districts have long maintained policies that exclude immigration issues from schools; they are mainly reiterating these to alleviate fears among families.

Plus: Some districts in GOP-led states say they'll cooperate with ICE or are staying mum on their plans.

• "Florida schools will cooperate with all law enforcement working to enforce the nation's laws on illegal immigration," Florida's education department spokesperson Sydney Booker told Axios Tampa Bay.
• Northside ISD, San Antonio's largest district, does not plan to issue any communications or FAQs about immigration, district spokesperson Barry Perez tells Axios.

What they're saying: Nicholas Espíritu, deputy legal director at the National Immigration Law Center, says it's not clear what ICE enforcement in or around schools could look like.

• Past administrations have avoided allowing ICE in schools, choosing instead to focus efforts on people with violent criminal histories and who pose a national security threat.
• "One thing is for sure — little children trying to go to school and learn how to read and write don't pose threats to national security," Espíritu says, adding that even the possibility of enforcement could severely disrupt children's education and growth.

Young people are finding dating apps more appealing after watching paid influencers on TikTok share their experiences, per Tinder's recent brand sentiment study shared exclusively with Axios.

Why it matters: The marketing strategy comes after reports that Gen Z and Millennials are not interested in swiping and are instead seeking in-person alternatives, negatively impacting Tinder parent Match Group's business.

The big picture: Match Group has struggled on the public market in recent years. The company has reported negative payer growth for the past eight quarters.

• Tinder CMO Melissa Hobley says the campaign was intended to address the narrative that meeting in person is better than the apps.
• "We know that you want an IRL meet cute. That's great. It's really hard for it to happen," Hobley says. "Finding love on an app is so possible. It's really fun. It can lead to you finding someone great."

Zoom in: Tinder enlisted six TikTok influencers to produce a series of videos from September to December where they shared their experiences trying to find potential dates in-person and then dating through Tinder. They used the hashtag #theconnectionexperience.

• Madi Webb, who has 2.6 million followers on TikTok, says she was excited to be a part of the campaign because when Tinder reached out she had recently gotten out of a relationship and saw it as a fun next step.
• Webb says she sees value in both methods of dating and that two of her best friends have met their partners on dating apps. One benefit she found in using dating apps is being able to publicly identify as queer.
• "I genuinely can count on two fingers how many times I have been in-person hit on by another woman, and that was because I was making the most crazy eye contact you've ever seen in your life," says Webb, who met a woman through Tinder in October. They are still dating.

By the numbers: According to the study by Hanover Research, prior to watching the TikTok series, 80% of Gen Z respondents said they had a positive perception of meeting a date in person and 50% said they had a positive perception of meeting via a dating app.

• After watching the series, 53% of respondents said they found dating apps more appealing while 33% say that their impression remained unchanged.
• For those who found dating apps more appealing, 50% cited the influencer's experience on the dating app and 48% cited the convenience of dating apps.
• After watching the series, 58% of respondents said they are likely to use Tinder.

The fine print: The online survey, conducted Jan. 6-9, had 492 U.S.-based respondents, ages 18-28, who regularly use social media and have dated within the past year. They were compensated.

What we're watching: Match Group reports Q4 2024 earnings on Feb. 5.

Open houses could get busier.

Why it matters: A new real estate rule requires homebuyers to sign contracts with brokers to tour houses privately.

• And that's making open houses, which don't require such contracts, a smart option for shoppers who aren't ready to commit to an agent.

The big picture: Private showings traditionally represented an "opportunity for the agent to audition for the job," Stephen Brobeck, senior fellow at the Consumer Federation of America, tells Axios.

What they're saying: "Imagine walking into a store to browse and before you are let in the front door you have to sign a contract just to look," wrote a Reddit user on a discussion board for first-time homebuyers.

Catch up quick: The shift is part of a legal settlement the National Association of Realtors (NAR) reached last year that shakes up how agents get paid.

Reality check: Some agents say they're not sweating the change — buyers are already adjusting.

• Home sales have jumped recently but remain historically low, according to NAR data.

The latest: Many brokers are open to signing short-term agreements, like showing one particular home, so buyers don't feel "stuck with us indefinitely," says Nate Johnson, NAR's 2024 vice president of advocacy.

Between the lines: The U.S. Department of Justice has said the new contract rule could hamper broker competition for clients.

• Others say the agreements can be confusing for buyers to understand.

What we're watching: The Justice Department's concerns didn't stop a judge from approving the NAR settlement, though federal prosecutors could still step in.

• The DOJ has scrutinized the real estate industry for decades, including during President Trump's first term.

Pete Hegseth was narrowly confirmed as President Trump's Defense secretary after Vice President JD Vance cast a tie-breaking vote.

Why it matters: Hegseth survived a bruising confirmation battle that was nearly derailed by accusations of sexual assault and other forms of misconduct.

• The Senate voted 51-50 late Friday to confirm Hegseth, who has denied the allegations against him.
• Former Senate Majority Leader Mitch McConnell (Ky.) voted no along with GOP Sens. Lisa Murkowski (Alaska) and Susan Collins (Maine).
• It was only the second time in U.S. history that a vice president cast a tie-breaking vote to confirm a Cabinet nominee.

The intrigue: The final hours before the vote were full of uncertainty, as some worried that McConnell and Sen. Thom Tillis (R-N.C.)would sink the nomination.

• Tillis ultimately voted yes.

The big picture: Despite early uncertainty, Republicans largely rallied around Hegseth. The Armed Services Committee recommended his nomination Monday via a nail-biter 14-13 vote.|

• Thursday, the AP reported that the nominee paid $50,000 to a woman who accused him of sexual assault in 2017.
• It came shortly after Congress was provided a sworn affidavit from Hegseth's former sister-in-law who said the defense secretary nominee's ex-wife feared for her safety.

Between the lines: It's not the first time McConnell has been at odds with Trump, but it's his first big move outside of leadership.

• McConnell's tangle with Hegseth is far from over, as he chairs the Defense Appropriations subcommittee.
• McConnell has been clear he intends to push back on isolationism in the GOP.

What he's saying: "Mere desire to be a 'change agent' is not enough to fill these shoes," McConnell said in a lengthy statement after his vote. "And 'dust on boots' fails even to distinguish this nominee from multiple predecessors of the last decade. Nor is it a precondition for success."

• "The United States faces coordinated aggression from adversaries bent on shattering the order underpinning American security and prosperity," McConnell continued, saying that throughout the confirmation process, "Mr. Hegseth did not reckon with this reality."
• McConnell also said that Hegseth "wouldn't even commit to growing America's defense investment beyond the low bar set by the Biden Administration's budget requests."
• Bolstering defense spending is a top issue for McConnell.

Editor's note: This story has been updated with additional reporting.

The Trump administration is directing the heads of federal agencies to "take action to terminate" staffers of DEI offices, according to a memo from the U.S. Office of Personnel Management issued Friday night.

Why it matters: The White House purge of diversity, equity, inclusion and accessibility (DEIA) programs and workers, begun Monday, is happening at lightning speed.

State of play: "[E]ach agency, department, or commission head shall take action to terminate, to the maximum extent allowed by law, all DEI, DEIA, and 'environmental justice' offices and positions within sixty days," the memo reads.

• The memo updates a directive sent earlier this week that told agencies to submit written plans for executing a "reduction-in-force," i.e., layoffs, no later than January 31.
• But the new memo says agencies should start issuing these reduction-in-force notices now.
• It's not clear how many DEI staffers there are within the federal government, which employs millions of workers.
• In many cases it may not be possible to simply fire these workers; processes for doing so will vary.

Zoom in: The memo Friday night follows a directive issued earlier this week that ordered department and agency heads to close DEI offices — some of which are tasked with addressing accessibility issues for disabled people.

• Agencies were ordered to put staff on paid leave, as well as take down all DEI websites, social accounts, and "outward facing media." They were also told to withdraw any plans in the equity and inclusion space and cancel all trainings and contracts.
• The directive included an email template that called on government employees to snitch on colleagues that were continuing these practices.

Between the lines: The barrage of orders on DEI is creating an atmosphere of fear and anxiety for federal workers, advocates say.

• The Trump administration argues that these programs are actually discriminatory for giving preference to people based on their racial, ethnic or gender identity.

What they're saying: "Ultimately, these attacks on DEIA are just a smokescreen for firing civil servants, undermining the apolitical civil service, and turning the federal government into an army of yes-men loyal only to the president, not the Constitution," said a statement from the American Federation of Government Employees, the largest federal employee union, from earlier in the week when the first directive was issued.

Zoom out: The crackdown is moving in parallel to a retreat from these policies in corporate America. On Friday, Target said it was pulling back on DEI.

• A few companies are defending their practices, though, including Costco and JPMorgan Chase.

Context: Trump's orders targeted a number of policies from the Biden administration, which sought to cast a wider net in hiring.

• Those efforts did increase the share of federal employees with disabilities in particular.

President Trump will reinstate a policy cutting off U.S. global health funding to international organizations that provide legal abortion information, referrals or services, the White House wrote in a memo released on Friday.

Why it matters: Trump will expand the so-called Mexico City policy, which critics refer to as a global gag rule.

• Former President Ronald Reagan first enacted the policy in 1984. Each Democratic president has rescinded the rule upon entering office, and each Republican president has reinstated it.

The gag rule has negatively affected global health care systems beyond family planning, according to a 2019 review of existing research on the policy.

• Only a handful of studies actually examined the rule's impact on abortion rates, and those three papers concluded that the policy does not decrease abortion rates, per the scope review.

Target is pulling back on some of its diversity, equity and inclusion (DEI) efforts, days after President Trump returned to the White House.

Why it matters: The retailer follows a litany of major companies that have already scaled back DEI initiatives, including Walmart, McDonald's and Meta.

The big picture: The landscape for DEI initiatives has weakened in recent months as Trump and the MAGA movement targeted companies that have made it a priority.

• In his first week in office, Trump has ramped up his anti-DEI campaign, issuing executive orders banning DEI efforts in the federal government and raising the prospect that private DEI programs could be illegal.

Target Belonging at the Bullseye strategy

State of play: Target posted a fact sheet on its corporate site Friday titled "Target's Belonging at the Bullseye Strategy" that lists some of its actions, including:

• Concluding its "three-year diversity, equity and inclusion goals" and "Racial Equity Action and Change (REACH) initiatives in 2025 as planned."
• "Stopping all external diversity-focused surveys, including HRC's Corporate Equality Index."
• Evolving its "supplier diversity team" to "supplier engagement" to "better reflect our inclusive global procurement process across a broad range of suppliers, including increasing our focus on small businesses."

Zoom out: Target has been a lightning rod on social issues in recent years.

• The company previously implemented a policy allowing transgender people "to use the restroom or fitting room facility that corresponds with their gender identity."
• The retailer last year reduced Pride Month products after a backlash tied to its sales of LGBTQ+-themed items in 2023.

What they're saying: "We remain focused on driving our business by creating a sense of belonging for our team, guests and communities through a commitment to inclusion," Target said in its fact sheet.

• Target did not immediately address whether it was changing its bathroom policy.

More from Axios:

• Trump's DEI orders may halt progress for disabled workers
• Skyline Chili and Graeter's release "sweet, savory" ice cream
• Walmart boosts some top managers to over $600,000 a year
• Egg shortages, higher prices spike as bird flu grows

House Republicans are desperately hoping President Trump will settle their big fights for them next week at their retreat in Miami, even as he's shown no interest in filling that role.

Why it matters: With a zero-vote margin, Speaker Mike Johnson (R-La.) will have to make hard decisions to translate Trump's vision into a legislative reality.

• Ahead of the retreat, Johnson is letting his members hash out serious differences on where to cut taxes and slash spending — and how to make the multitrillion-dollar math work.
• But Republicans are running out of time to decide on topline tax and spending levels. Johnson hopes to have a "blueprint" for the reconciliation bill next week, Politico reported.
• "Our members are eager to hear from President Trump and excited to deliver on his America First agenda. We will not fail," House Majority Whip Tom Emmer (R-Minn.) told Axios on Friday.

Enter Trump, who has made it a priority to keep House and Senate lawmakers close.

• Trump likes talking to members but has shown no willingness to make difficult decisions for them.
• Trump is expected to speak at the retreat on Monday afternoon, Punchbowl reports. He'll join Johnson and Republicans for dinner that evening, Politico reports.

Zoom out: Republicans spent the week floating and privately discussing ways to find revenue sources and lower taxes, according to the New York Times and Punchbowl.

• Some proposals will have difficulty finding support in the GOP conference, such as eliminating the tax deduction for mortgage interest.
• Others are more feasible, such as doubling the current $10,000 deduction limit for state and local taxes (SALT) for married couples.

Senate Minority Leader Chuck Schumer (D-N.Y.) used a rare emergency meeting on Friday to make a plea for unity, but Democrats have a tactical problem he can't avoid.

Why it matters: Schumer can't guarantee the votes to give Sen. Jeanne Shaheen (D-N.H.) the time and leverage to negotiate with Sen. Tom Cotton (R-Ark.) on the upcoming ICC sanctions bill.

• Democratic senators know they're stronger when they stick together, especially on procedural votes.
• But many senators have a greater interest in voting for GOP legislation that can help them win reelection in Trumpy states.

Zoom in: Democrats didn't resolve any of their short- or long-term strategic differences in Friday's 90-minute meeting, which Axios scooped was coming in Hill Leaders.

• After the meeting, senators were extremely reluctant to discuss the open rift in their party. They emerged stone-faced and weren't in the mood to talk.
• Staff weren't allowed to attend the strategy session.

Between the lines: Schumer approached the meeting with a message of kumbaya, according to a source briefed on the session.

• To give her room to negotiate, Shaheen needs Democrats to send a clear signal that they oppose the current version of the bill — and are prepared to vote it down.
• Shaheen is the ranking member on the Senate Committee on Foreign Relations. Cotton introduced the ICC sanctions bill in the Senate.

But lawmakers emerged from the meeting without a clear strategy on how to approach the ICC measure, which has splintered progressives and moderates.

• Sen. Brian Schatz (D-Hawaii) told Axios after the meeting "all I can tell you is that Jeanne Shaheen is in the middle of negotiations."

The bottom line: Schumer has a handful of moderates who are up for reelection next year, and they will face pressure to back some GOP legislation.

• Schumer allowed Democrats to vote their conscience on the Laken Riley Act, the GOP's first border crackdown bill of the new session.
• With a dozen Democratic votes for the procedural vote, Republicans passed the bill without any changes to the legislation.

Whatever Elon Musk's Department of Government Efficiency (DOGE) was supposed to be, on Monday it apparently took a new form altogether — a federal office with deep influence over the government's digital infrastructure.

Why it matters: Once explicitly envisioned as an out-of-government vehicle to cut $2 trillion from the budget, slash federal jobs, reduce waste and streamline bureaucracy, DOGE is instead starting with an apparent pivot to Musk's bread-and-butter: software development.

The big picture: "First buddy" Musk has spent the last two months promising DOGE would revolutionize the government.

• It's unclear how the new mandate to run a "Software Modernization Initiative" will deliver on that promise.
• But as the Washington Post reported this week, it does streamline the DOGE mission into what Musk was interested in all along, as opposed to the slash-and-burn his former co-leader Vivek Ramaswamy envisioned.
• As the Wall Street Journal reported, Musk's vision won out, while Ramaswamy's tendency to have a public hot take on virtually any subject wore thin his welcome in Trumpworld.

Driving the news: President Trump signed an executive order Monday night formally establishing DOGE.

• It renames the U.S. Digital Service the U.S. DOGE Service and puts it under the Executive Office of the President — effectively making a federal entity of what was previously described as an outside-of-government operation.
• "This Executive Order establishes the Department of Government Efficiency to implement the President's DOGE Agenda, by modernizing Federal technology and software to maximize governmental efficiency and productivity," the order reads.
• The new USDS will have an administrator (not yet named), who reports to the White House chief of staff. It will also have a "Temporary Organization" whose mandate of advancing Trump's agenda expires July 4, 2026 - the 250th anniversary of the Declaration of Independence.
• The order requires that each federal agency establish a DOGE Team with a team leader, an engineer, an HR specialist and an attorney.
• It also instructs that the new USDS get "full and prompt access to all unclassified agency records, software systems, and IT systems."

Flashback: The U.S. Digital Service itself is the legacy of an earlier "Silicon Valley meets Washington" effort under President Obama, when software-savvy tech experts flooded D.C. to rescue the troubled Obamacare website and stuck around to help modernize systems across government. 

• It's been lauded for its achievements, though it's not clear which (if any) of its efforts will survive the DOGE transition.

The intrigue: Musk's depth of software experience is well known.

• But he also has extensive business with the government, and intricate personal finances, complicating the prospect of working with a White House office at the same time.
• He also reportedly lacks some security clearances, which could throw a wrench into DOGE's work in some parts of government.
• DOGE is already facing lawsuits about what kinds of disclosures it does or doesn't have to make, and intended co-leader Ramaswamy (the more public advocate on the efficiency push) has left.
• The White House did not return calls for comment.

💭 Ben's thought bubble: DOGE's new structure is not what anyone expected, and raises plenty of new questions no one's yet answering: Is this all that's planned? What does Musk gain from such unfettered access to so much government data? And can better software really save $2 trillion a year?

Scott Rosenberg contributed.

The U.S Secret Service says it was their agents, not Immigration and Customs Enforcement agents that showed up at a Chicago Public School (CPS) on the city's South Side Friday.

Why it matters: These were the first reports of agents turning up at a school after the Trump administration announced this week that it would change immigration enforcement policies to allow arrests at schools, churches and hospitals.

• Due to a misunderstanding CPS officials had initially reported denying entry to ICE agents Friday morning.
• The Secret Service agents were "investigating a threat made against a government official we protect," USSS spokesperson Anthony Guglielmi said in a statement.
• He said the agents "identified themselves to the school principal and provided business cards " but "we do not investigate nor enforce immigration laws."

The big picture: Trump's policy change has some parents of undocumented children reconsidering whether to send them to school, AP reports.

• The school, Hamline Elementary, is in a predominantly Mexican-American neighborhood.
• Like many school districts, CPS does not ask students for their immigration status and does not coordinate with immigration enforcement agencies.

How it happened: CPS officials explained late Friday that the confusion stemmed from the agents' presentation of identification from the Department of Homeland Security, which oversees both ICE and the Secret Service. 

• "While this was a misunderstanding in terms of the specific branch of DHS, the school's response demonstrates that our system, in partnership with community organizations, is prepared and ready to keep our students and staff safe," a CPS spokesperson said.

Editor's note: This story has been updated with the latest.

The Elon Musk-Sam Altman feud entered a new hot phase this week on X following President Trump's announcement of Stargate, a new $500 billion AI infrastructure joint venture funded in part by OpenAI, the AI giant Altman leads.

Why it matters: Musk's public questioning of the financial strength of a venture that Trump had just blessed from the White House marked the first public sign that the "First Buddy's" relationship with the president might be turning rocky.

Driving the news: Trump, joined by Altman, Oracle co-founder Larry Ellison, and SoftBank CEO Masayoshi Son, announced at a White House briefing on Tuesday that Stargate "will invest at least $500 billion" in AI infrastructure in the U.S. by 2029 and create "over 100,000 American jobs almost immediately."

• The initial investment of $100 billion will be used to construct AI data centers, starting in Texas, with plans to expand to other states.

Hours after the announcement, Musk cast doubt on the ambitious Stargate project, claiming lead investor SoftBank Group has "well under $10B secured."

• "They don't actually have the money," Musk wrote on X. "SoftBank has well under $10B secured. I have that on good authority," he added.
• Musk also attacked Altman personally as a "swindler" and a "liar."

Altman countered Musk's claims about the project, replying, "wrong, as you surely know," and suggested he was more worried about his personal ambitions than the national interest.

• Altman also stated that he doesn't think Musk is a "nice person or treating us fairly but you have to respect the guy and he pushes all of us to be more ambitious."
• He later posted on X, seemingly alluding to Musk: "just one more mean tweet and then maybe you'll love yourself."

What they're saying: White House press secretary Karoline Leavitt told Fox News that "the American people should take President Trump and those CEOs' words for it."

• "I don't know if they do, but you know they're putting up the money," Trump said Thursday, responding to a reporter's question about whether he was bothered by Musk's public criticism of the investment commitment.

Between the lines: Musk has been at odds with Altman ever since the two had a falling-out over the destiny of OpenAI in 2018.

• Musk sued Altman and OpenAI in August, alleging that Altman and co-founder Greg Brockman abandoned the company's founding agreement as a nonprofit by prioritizing business growth over the public interest.
• Musk has also founded a rival AI firm, xAI, so the feud is grounded in commercial rivalry as well as apparent personal animosity.

Our thought bubble: Musk and Altman have long been very public enemies, so it's hardly surprising that Trump's offering a White House spotlight to Altman on day two of his administration might miff Musk.

• "Elon, one of the people he happens to hate," Trump told the press. "But I have certain hatreds of people too."
• Trump is shrugging it off for now, but both Trump- and Musk-watchers have long assumed that neither of these billionaires will be able to share a spotlight for that long.

The Securities and Exchange Commission reversed a controversial accounting rule Thursday, which had helped deter banks from participating in crypto services.

Why it matters: The move to rescind the guidance, known as SAB 121, comes as Wall Street prepares to expand their digital asset businesses in light of a changing regulatory landscape under President Trump.

Catch up quick: The accounting rule, issued by the SEC in 2022, said that any bank that held digital assets on behalf of a customer, a service known as custody, should account for the assets as a liability on its own balance sheet.

• This made holding crypto costly for banks, especially those looking to custody large volumes of digital assets in order to provide other transactional crypto services for clients.
• Wall Street had opposed the rule, and a resolution to overturn it had actually passed both houses of Congress last year with bipartisan support, but was vetoed by President Biden.

What they're saying: "Bye, bye SAB 121! It's not been fun," SEC commissioner Hester Peirce wrote on X Thursday afternoon, citing the action that revoked it: SAB 122.

Zoom in: Peirce, known to the industry as "Crypto Mom," was tapped Tuesday to head a crypto task force at the SEC charged with putting the agency on what it called a "sensible regulatory path."

• The task force was announced by acting SEC chairman Mark Uyeda, just a day after Trump was sworn in and former SEC chair Gary Gensler stepped down.
• Veteran regulator Paul Atkins, also a favorite of the crypto community, has been nominated as the next chair and is awaiting Senate confirmation.

Go deeper:

• House crypto subcommittee chair wants to focus on fraud prevention
• Senate Banking Committee convenes its first digital assets subcommittee

The U.S. Treasury Department announced on Friday that all sanctions imposed on Israeli settlers involved in violent attacks against Palestinians in the occupied West Bank and against organizations involved in the building of illegal West Bank outposts have been lifted and all frozen assets released.

Why it matters: The lifting of the sanctions is a victory for the "settlements lobby" in Israel and in the U.S., which pushed for this move after President Trump was elected.

Driving the news: On Monday, Trump revoked former President Biden's executive order enabling sanctions on Israeli settlers involved in violent attacks against Palestinians, or on entities that support them.

• In the year after Biden imposed the order, the State Department and the Department of Treasury imposed sanctions on dozens of settlers and organizations.

Yes, but: The U.S. move will not lead to the lifting of similar sanctions against Israeli settlers imposed by the European Union, Canada, the U.K., Australia and other countries.

Behind the scenes: A Trump administration official told Axios the Israelis lobbied Trump's team during the transition to lift the sanctions once he assumed office.

• "It was very important for the Israeli government," the official said.
• Sen. Ted Cruz (R-Texas) and other U.S. lawmakers also lobbied for this move.

State of play: In recent days there has been another surge in attacks by settlers against Palestinians in the West Bank.

• Last week, ahead of the Cabinet meeting to approve the Gaza hostage and ceasefire deal, Israeli Defense Minister Israel Katz signed an order to release all Israeli settlers who were under administrative detention for allegedly committing and planning terror attacks against Palestinians.
• An Israeli security official who was alarmed by the decision told Axios Katz made it for domestic political considerations and without consultation with Israel's security agencies.
• Several days later, dozens of settlers conducted an attack in the Palestinian village of Funduk in the West Bank.