The House GOP's blue state holdouts are close to a deal on the "big, beautiful bill" that would raise the state and local tax (SALT) deduction cap to $40k a year for people making up to $500,000 a year, sources familiar told Axios.
Why it matters: Getting the blue state holdouts on board is a must-do for House Speaker Mike Johnson, who wants a House floor vote Wednesday on the full bill.
Zoom in: Johnson offered the holdouts on Monday an increase for the state and local tax (SALT) deduction cap from $10,000 to $40,000 a year, within income limits.
The speaker then got an assist from President Trump, who told the holdouts to cut a deal and warned them to stop pushing so hard.
The agreement that's in final negotiations is a $40k a year cap for people making up to $500,000 a year. The income phaseout would grow 1% a year for 10 years, and then the deduction would become permanent.
Not all the details have final agreement, but sources said they're making progress and they expect most SALT members to agree to the terms before passage.
The bottom line: That number would keep the GOP within the $350 billion window that it has left for cuts, according to the reconciliation bill instructions.
This story is adapted from the new book "Original Sin: President Biden's Decline, Its Cover-Up, and His Disastrous Choice to Run Again," by CNN's Jake Tapper and Axios' Alex Thompson.
Mike Donilon, a top adviser to former President Biden, was paid about $4 million to work on the 2024 Biden campaign at the president's insistence, CNN's Jake Tapper and Axios' Alex Thompson write in their new book, "Original Sin."
Why it matters: The sum was orders of magnitude higher than the pay for other top aides — campaign chair Jen O'Malley Dillon made $300,000 — and illustrates the standing held by Biden's inner-most circle of advisers.
Many former Biden officials remain bitter at Donilon for making so much money and, in their view, guiding the campaign into disaster.
Behind the scenes: In early 2024,Donilon agreed to shift from the White House to the campaign, but wouldn't budge on his asking price.
"The president told the campaign: Pay Mike what he wants," the authors report. "Senior campaign staff were outraged when they heard about this arrangement."
Between the lines: Donilon's pay has caused further resentment among many Biden aides toward the former president's inner-circle and their handling of the re-election campaign.
They argue that Biden's top aides should have had to courage to confront him about the huge risks of running for a second term, and not profited so much from what was ultimately an unsuccessful campaign.
Some former Biden aides are quietly trying to separate themselves from the Biden re-election effort.
What they're saying: A Biden spokesperson did not respond to a request for comment.
Donilon has rejected the notion that Biden's acuity and judgment declined during his tenure, calling it an "impression" fueled by the media.
The book is based on interviews with more than 200 people, mostly Democratic insiders, with knowledge of the events that unfolded during the final two years of Biden's presidency. Almost all of the interviews took place after the 2024 election.
Google used this week's I/O developer conference to announce a slew of new AI features and experiences, along with a new $250-a-month subscription service for those who want to access the company's latest tools.
Why it matters: Google is aiming to prove that it can make its core products better through AI without displacing its highly lucrative advertising and search businesses.
Key announcements Google made Tuesday:
It debuted Flow, a new AI filmmaking tool that draws on the company's latest Veo 3 engine and adds audio capabilities. The company also announced Imagen 4, its latest image generator, which Google says is better at rendering text, among other improvements.
Google said it would soon make broadly available its latest Gemini 2.5 Flash and Pro models and add a new reasoning mode for the Pro model called Deep Think.
Google will make its AI Mode, a chat-like version of search, broadly available in the U.S. and it's updating the underlying model to use a custom version of Gemini 2.5.
It's also beginning to allow customers to give large language models access to their personal data — starting with the ability to generate personalized smart replies to Gmail messages that draw on a user's email history. That feature will be available for paying subscribers this summer, Google CEO Sundar Pichai said.
On the coding front, Google offered further details on Jules, its autonomous agent, which is now available in public beta. Microsoft and OpenAI have also announced new coding agents in recent days.
For those who want to make sure they can have the most access to Google's AI models, the company is introducing Google AI Ultra, a $250-a-month service.
The high-end subscription — an alternative to the standard $20-a-month basic service — includes access to a number of its most powerful AI agents, models and services, as well as YouTube Premium and 30TB of cloud storage.
Also in Google's cavalcade of demos, the company showed an early prototype of its Android XR glasses searching, taking photos and performing live translation.
The glasses have audio and camera features similar to Meta's Ray-Ban smart glasses, but also offer an optional display. (Meta is also said to be working on a version of its glasses with a built-in display for later this year.)
Partners include Samsung and eyewear makers Warby Parker and Gentle Monster.
The big picture: Google's event comes a day after Microsoft made a slew of announcements at its Build conference in Seattle. Anthropic, meanwhile, is holding its first-ever developer conference on Thursday in San Francisco.
Former President Biden's team on Tuesday sought to shut down questions over how long they've known about his cancer diagnosis.
The big picture: After previous concerns that the 82-year-old's health issues may have been covered up in the past, Biden's disclosure over the weekend that he has Stage 4 prostate cancer was met with both sympathy and speculation over its timing.
What they're saying: A spokesperson for Biden told Axios in an emailed statement Tuesday evening that the former president's last known prostate-specific antigen (PSA) test was in 2014.
"Prior to Friday, President Biden had never been diagnosed with prostate cancer," the spokesperson said.
State of play: The U.S. Preventive Services Task Force recommendation on screening for prostate cancer holds that it's an individual choice for men age 55-69 and that it offers a small potential benefit of reducing the chances of death.
They worry about potential harms of screening, including additional testing, prostate biopsy, over-treatment and complications.
For those 70 and older, like Biden, they advise against it, saying with moderate certainty that potential benefits don't outweigh expected harms.
Between the lines: Biden was 70 or 71 years old when he had his last PSA, before he had symptoms that led to last Friday's exam. That's within standard guidelines and is not unusual.
It is noteworthy, however, that he apparently was not tested for it even while he was president.
Immigration attorneys have accused the Trump administration of deporting immigrants from Myanmar and Vietnam to South Sudan in violation of a court order, per a filing Tuesday that's requesting their "immediate return."
The big picture: The attorneys made the filing in a Boston-based federal court to U.S. District Judge Brian Murphy, who's already ruled that sending undocumented immigrants to countries they're not citizens of would "clearly violate" an earlier order against sending people to third countries.
Driving the news: The lawyers said the man from Myanmar, identified as N.M., was delivered a notice in English without an interpreter on Monday, saying he'd be sent to South Sudan, an East African country that the State Department advises U.S. citizens not to travel to due to "continued security threats" that include crime, kidnapping, and armed conflict.
"N.M. has limited English proficiency," said a San Francisco-based attorney in a Tuesday filing that said she was told after the fact that her client had been "removed" from Texas' Port Isabel Detention Center to South Sudan.
The emergency filing in the Massachusetts District Court said T.T.P., a national of Vietnam, "appears to have suffered the same fate as N.M." and the lawyers had "information that there were likely at least 10 other" immigrants on the deportation plane to South Sudan.
The lawyers said this "blatantly defies" the court order prohibiting sending immigrants to third countries and requested the judge block any further such deportations.
Representatives for the Trump administration did not immediately respond to Axios' request for comment in the evening.
Senate Majority Leader John Thune is blazing forward with a controversial move to repeal California's EV mandate — and Democratic Leader Chuck Schumer is warning it will come back to bite him.
Why it matters: Schumer (D-N.Y.) all but threatened to deploy similar strategies to get around opinions by key, nonpartisan rule makers if and when he grabs back control of the chamber.
"What goes around comes around," Schumer said on Tuesday. He and other Democratic leaders have described the GOP move as a "nuclear option."
Thune (R-S.D.) accused Democrats of "throwing a tantrum."
Driving the news: The Senate will vote as soon as Wednesday on a Congressional Review Act (CRA) resolution that would overturn California's Clean Air Act waiver, leading to an eventual ban on gas-powered vehicles.
The Government Accountability Office issued an opinion saying that the waiver is not a rule that cannot be repealed by the CRA. The Senate parliamentarian then agreed with GAO.
That isn't stopping Republicans.
Zoom in: Key Senate Republican leaders have been discussing the best way to move forward with repealing California's EV policy — and assuring senators with concerns about ignoring the parliamentarian.
For weeks, GOP Whip John Barrasso (R-Wyo.) assured reporters the Senate would move forward with the CRA, making the case for it on the Senate floor and in an op-ed.
Senate Rules Chair Mitch McConnell (R-Ky.), a staunch defender of Senate procedure, spoke in favor of using the CRA during a closed-door lunch last week. His voice was particularly influential for some senators on the fence, according to sources familiar.
Between the lines: Republicans argue the California waiver is a unique case, the GAO does not get to decide what rules can be undone and that their action does not count as overruling the parliamentarian.
"We are not talking about doing anything to erode the institutional character of the Senate," Thune argued on the Senate floor on Tuesday.
Democrats say Republicans are leaving the door wide open for how the CRA can be interpreted and used in the future — and point to past examples of Republicans asking the GAO to weigh in on the CRA.
"To go nuclear on something as significant as this, and to do the bidding of the fossil fuel industry, is outrageous," Schumer said on the Senate floor on Tuesday evening.
Some of the first House Democrats to call for former President Biden to drop his reelection bid in 2024 saw firsthand signs of his deterioration as early as 2023, according to a new book by CNN's Jake Tapper and Axios' Alex Thompson.
Why it matters: Many top Democrats, including White House officials, donors and lawmakers, ignored what they were seeing for months or even years. Others, the book says, noticed Biden's shortcomings but kept quiet.
In the end, it was self-preservation that spurred many Democrats to finally drop the charade and urge Biden to get out of the race after his disastrous presidential debate.
The book "Original Sin" is based on interviews with more than 200 people, mostly Democratic insiders, with knowledge of the events that unfolded during the final two years of Biden's presidency. Almost all of the interviews took place after the 2024 election.
Driving the news: Thompson and Tapper write that a White House Christmas party in 2023 was a watershed moment for several Democratic lawmakers.
Rep. Adam Smith (D-Wash.), the ranking member of the House Armed Services Committee, was "stunned" to see Biden "completely out of it" while interacting with guests at the photo line.
Upon leaving the party, Rep. Seth Moulton (D-Mass.) and his wife, Liz, "remarked on how frail the president looked and how lethargic he seemed compared with the previous December."
Zoom in: For Rep. Mike Quigley (D-Ill.), the book says, the epiphany came even earlier.
During a trip to Ireland in April 2023, Quigley saw Biden rapidly go from energetic to drained. "This was how his father, Bill, had been before he died," the authors write.
"Biden, Quigley thought, needed to go to bed for the rest of the day and night. He wasn't merely physically frail; he had lost almost all of his energy. His speech was breathless, soft, weak."
The other side: "There is nothing in this book that shows Joe Biden failed to do his job, as the authors have alleged, nor did they prove their allegation that there was a cover-up or conspiracy," a Biden spokesperson told Axios.
"Nowhere do they show that our national security was threatened or where the President wasn't otherwise engaged in the important matters of the Presidency. In fact, Joe Biden was an effective President who led our country with empathy and skill."
Some Democrats have leapt to Biden's defense, with Rep. Jim Clyburn (D-S.C.) saying in a CNN interview that he "never saw anything that allowed me to think that Joe Biden was not able to do the job."
Zoom out: Smith, Moulton and Quigley were among the first House Democrats to call on Biden to withdraw his bid for reelection after his debate with Trump in June 2024.
But they and other House Democratic colleagues had largely kept quiet up until that point.
Former Rep. Dean Phillips (D-Minn.), who challenged Biden in the Democratic primary, had "tried to get other Democrats to talk about the president's decline, but no one was willing to say anything publicly," the book says.
The former congressman is quoted as saying later: "The whale who spouts gets harpooned."
Between the lines: At a debate watch party, one House Democrat who watched the calamity unfold exclaimed to House Democratic caucus chair Pete Aguilar (D-Calif.): "I just lost my job."
Former House Speaker Nancy Pelosi (D-Calif.) heard from swing-district House Democrats who "were getting polling back that indicated Biden's campaign was going to drag dozens of them down with it," the book says.
Rep. Bill Foster (D-Ill.) said at a closed-door Democratic caucus meeting: "I lived through the 2010 bloodbath — we lost sixty-three seats. That could happen again."
This story is adapted from the book, "Original Sin: President Biden's Decline, Its Cover-Up, and His Disastrous Choice to Run Again," by CNN's Jake Tapper and Axios' Alex Thompson.
President Trump on Tuesday touted $25 billion in initial funding for the "Golden Dome" and put Space Force Gen. Michael Guetlein in charge of realizing the hemispheric missile shield.
The big picture: Golden Dome — previously dubbed Iron Dome, but separate from Israel's missile defense program — is a mammoth undertaking with enthusiastic backing from the president but many doubters in the national security community.
Trump said the project will cost around $175 billion and be built over the next three years, though those are both just estimates. The initial $25 billion will be included in the "big beautiful bill" working its way through Congress, Trump said.
Planning, building, operating and maintaining the Golden Dome, as well as paying for it, will require intense coordination between the Pentagon, Congress, current and future presidents, defense contractors and troops. Trump said Canada also expressed interest in being covered by the shield but would have to "pay their fair share."
Analysts have expressed doubts about the plausibility — and immense costs — of replicating Israel's air defense capabilities at a continental scale. Trump, however, remains bullish.
The latest: Trump and Defense Secretary Pete Hegseth discussed the envisioned countermeasures during a televised Oval Office meeting.
They said the missile shield will be designed to block hypersonic missiles, ICBMs and other projectiles, including nuclear weapons, whether they are launched from the earth's surface or from space.
Trump said President Reagan had wanted to build something similar during the Cold War "but they didn't have the technology." Now, he said, the U.S. has "super technology."
"This is very important for the success and even survival of our country. It's a pretty evil world out there," Trump said.
How it works: At the heart of Golden Dome is a mesh of sensors and spotters and space-based interceptors.
Zoom out: Defense companies have been jockeying for position since Trump signed an executive order in January to pursue it.
Lockheed Martin pitched its F-35 stealth fighter, Sentinel A4 radars, command-and-control networks and more as components. Chief operating officer Frank St. John told Axios the project will "require the best of every technology company."
Booz Allen Hamilton unveiled Brilliant Swarms, a nod to the Reagan-era Brilliant Pebbles. It envisions masses of satellites capable of detecting and smashing into missiles. "The longer you wait to kill an enemy ballistic missile, the harder your problem gets," executive vice president Chris Bogdan told Axios.
Meanwhile, Anduril Industries, Palantir Technologies and SpaceX were collaborating on dome-related plans, according to Reuters.
House Speaker Mike Johnson cautioned the Senate in a closed door lunch on Tuesday not to make big changes to the reconciliation bill, Axios has learned.
Why it matters: If Johnson can get his conference in line, his problem will soon be Senate Majority Leader John Thune's (R-S.D.)— with an important July deadline looming on the debt ceiling.
Sources tell Axios that Johnson projected a lot of confidence in the meeting.
Johnson told senators "we're going to land this plane" and to expect a vote on Wednesday night, according to one attendee.
The top Democrat on the House Judiciary Committee plans to grill the Department of Justice on its decision to charge Rep. LaMonica McIver (D-N.J.) with assault on law enforcement, Axios has learned.
Why it matters: Democrats have roundly condemned the charges as an intimidation effort aimed at chilling their oversight of the Trump administration's deportation policies.
What they're saying: Rep. Jamie Raskin (D-Md.) told Axios he will "definitely" be questioning the Justice Department on the decision-making behind the charges, potentially in the form of a letter.
"It's a terribly troubling situation. It's an absolute assault on congressional powers," he said of the assault charges against McIver.
Security contractors are adapting to the Department of Government Efficiency's brutal cost-cutting regime — by pitching their tech as essential to its mission.
Why it matters: As federal workforce cuts deepen, DOGE is expected to lean more heavily on third-party security vendors to help dismantle longstanding information silos — despite the national security risks that could come from its quest.
Driving the news: In recent weeks, DOGE has quietly begun laying the groundwork for what privacy advocates long feared was its endgame: building a centralized database containing the personal information of millions of U.S. citizens and residents.
Some reports also suggest DOGE is exploring ways to deploy AI agents to replace federal workers across agencies, fueling further alarm about the national security and privacy implications.
Between the lines: Several companies are now marketing their tools directly to agencies as a way to survive DOGE's cost-cutting demands.
ServiceNow CEO Bill McDermott said in an earnings call last month that his company is benefiting from the shift. "In this moment, we're one of the rare companies that will grow 30% year over year in the public sector," he said.
Wired reported this month that OpenAI has met with the Food and Drug Administration about a tool to evaluate new drugs. Two DOGE associates were also in attendance, according to the report.
A source familiar with the matter confirmed the meetings to Axios, noting that OpenAI has shown clear interest in working specifically with the FDA in some capacity. However, no contracts have been signed yet.
The intrigue: Many of these vendors have ramped up their lobbying power in recent months — particularly with Trump-aligned lobbying firms.
So far in 2025, at least nine security and consulting firms, including Zscaler, Accenture, and Booz Allen Hamilton, have registered with Ballard Partners, according to congressional lobbying disclosures.
Zoom in: Axonius, an Israeli cybersecurity startup with growing federal ambitions, told Axios it's started pitching itself to agencies as a tool that can help them dodge the most severe DOGE audits.
The company's platform gives administrators full visibility into devices, software and users, aligning closely with DOGE's stated mission to streamline IT environments.
Tom Kennedy, vice president of Axonius Federal Systems, told Axios that the company's tools can be "part of a great efficiency story" and that its technology usually gets through relevant DOGE audits.
But Brian Meyer, field CTO at Axonius Federal Systems, added that the company's pitch doesn't endorse job cuts.
"Even before the DOGE, there was a problem in the cybersecurity industry for full-time employees — they're already trying to do more with less," he said. "We've been telling that story for years: Based on what we have, you can do more with the resources that you have."
The big picture: The federal cybersecurity ecosystem has been on edge during the early months of the second Trump administration, amid staff cuts in the federal cyber workforce and a pending Department of Justice investigation into former CISA director Chris Krebs.
Several administration officials met with companies on the sidelines of the RSA Conference last month in the hopes of mending some of these relationships.
Still, some executives say federal work has remained consistent. "We have been really privileged to have a strong relationship with every White House administration," Cloudflare CEO Matthew Prince told Axios in an interview.
"It feels like everything today is a partisan issue — but cybersecurity is on the less partisan side of that equation," he added.
Yes, but: That hasn't spared vendors from fallout.
Security research government contractor Mitre is laying off 442 employees, or nearly 5% of its workforce, in June due in part to contract cancellations.
Deloitte has also shared plans to lay off staff, and other consulting firms have warned of declining U.S. federal revenues this year.
"It's disruptive, there's no other way to put it," Kennedy said of DOGE's cuts to the federal cybersecurity workforce. "We were hoping that cybersecurity would be sheltered, and it has not been from a human side."
The chair of the National Republican Congressional Committee told Axios the House GOP's campaign arm will stick with its policy of not intervening in Republican primaries if President Trump tries to knock off incumbents.
Why it matters: Trump told reporters on Tuesday that House Republicans who vote against his "big, beautiful bill" could "possibly" face primary challenges, saying they would be "knocked out so fast."
Trump said Rep. Thomas Massie (R-Ky.), a key holdout on the bill who the president tried and failed to primary in 2020, "should be voted out of office."
What they're saying: NRCC chair Richard Hudson (R-N.C.), asked about Trump's comments, told Axios, "I don't want to comment on something I didn't hear."
But, pressed further on whether the NRCC would get engaged to protect GOP incumbents targeted by Trump, he said: "We don't do primaries."
The NRCC has long had a formal policy of not spending in GOP primaries — though Republican leadership has occasionally faced accusations of meddling in primaries to protect incumbents.
A coalition of faith leaders is urging religious organizations to openly show their support for LGBTQ+ people ahead of this year's Pride Month.
Why it matters: The effort comes as corporations are pulling support for Pride events and as GOP-led states are pushing laws banning Pride flags and at least 10 states have introduced bills banning marriage equality.
The big picture: This year's Pride Month comes amid uncertainty after President Trump signed an executive order against diversity, equity, and inclusion, prompting DEI walk-backs from companies.
Driving the news: In a letter with a pledge obtained by Axios, the mostly left-leaning faith leaders said "2025 Pride will test the courage of our nation" and "too often religion is used to attack LGBTQ+ people."
The leaders said millions of dollars are being spent "targeting our Trans siblings" and promoting bills like those banning marriage equality.
"We, who are from diverse faith traditions and beliefs, are showing up and refusing to back down. We support the LGBTQ+ community, and we Recommit to Pride," the letter said.
The leader said they would speak out with public prayers, bold statements, and visible acts of support for the LGBTQ+ community and urged other faith leaders to sign the pledge.
Zoom in: Interfaith Alliance is organizing the campaign.
The open pledge to be released Tuesday has already been signed by groups like the Association of Welcoming and Affirming Baptists, Evangelical Lutheran Church in America, Hindus for Human Rights and Muslims for Progressive Values.
State of play: Trump issued his anti-DEI order, and Defense Secretary Pete Hegseth is rushing to ban transgender troops from the U.S. military under pressure from evangelicals and conservative Catholics.
Both were among Trump's strongest supporters in the 2024 election.
The orders and moves by the administration have resulted in several companies ending DEI programs and stopping supporting Pride events.
Zoom out: Mastercard, Citi, Pepsi, Nissan and PwC pulled sponsorship of NYC Pride. Booz Allen Hamilton and Deloitte pulled out of WorldPride Washington, D.C., Axios' Eleanor Hawkins reports.
Anheuser-Busch, Comcast and Diageo also stopped sponsoring San Francisco Pride.
Meanwhile, Minneapolis' Twin Cities Pride rejected Target's sponsorship dollars citing wishy-washy support of the LGBTQ+ community and its DEI rollbacks.
By the numbers: 39% of corporations are scaling back external Pride Month engagements this year, according to Gravity Research data.
This is a sharp increase from last year when only 9% said they were changing their external Pride engagement.
57% of companies that are federal contractors plan to reduce external engagement, highlighting the risk of federal investigations.
What they're saying: "This Pride, it is more urgent than ever that we lock arms with our neighbors and build a community of solidarity," Melanie Willingham-Jaggers, executive director of GLSEN, an education LGBTQ advocacy organization, said in a statement.
"In a moment when the fundamental rights and physical safety of LGBTQ+ people are under attack...Faith in Public Life joins in honoring Pride and recommitting to our continued advocacy," Jeanné Lewis, CEO of Faith in Public Life, said.
"It's more important than ever for communities of faith to make absolutely clear our solidarity and support," said Rev. Paul Brandeis Raushenbush, president and CEO of Interfaith Alliance.
Friction point: The riskfor engaging around LGBTQ+ issues has increased 42% since this time last year, per Gravity Research's insights.
Roughly 6 in 10companies cite the Trump administration as the top reason for this change, while conservative activists and conservative policymakers come in second and third.
Speaker Mike Johnson is still facing a bloc of persistent right-wing holdouts on his "big, beautiful bill" even after President Trump urged House Republicans to support it in a closed-door meeting.
Why it matters: Johnson (R-La.) and his leadership team are hoping to bring the marquee tax and spending cut legislation to the floor for a vote as soon as Wednesday, but that timeline is at risk of slipping away.
"I don't think the votes are going to be there this week, the margins are very narrow," said House Freedom Caucus chair Andy Harris (R-Md.), adding, "In its current form, I can't support the bill."
Rep. Scott Perry (R-Pa.), a former Freedom Caucus chair, told Axios: "I don't know that anything's changed … I need to see text."
Zoom in: Blue-state Republicans pushing for an increased State and Local Tax Deduction signaled they were also unswayed to take the $40,000 cap proposed by GOP leadership.
"As it stands right now, I do not support the bill," Rep Mike Lawler (R-N.Y.) told reporters.
Rep. Nick Lalota (R-N.Y.) told Axios: "I remain a 'no' on the bill."
State of play: Johnson is grappling with contradictory demands from various House GOP blocs.
The SALT caucus' demand for an increased tax break for high-income, blue-state residents cuts directly against right-wingers' desire to reduce the bill's deficit impacts as much as possible.
Johnson's right flank is also pushing for Medicaid cuts that many moderates oppose — in part because it would clobber their constituents.
Harris also said Trump's demand that the bill increase the debt ceiling could be a sticking point, saying he could "lose some votes" if it goes beyond $4 or 5 trillion.
What to watch: Most Republicans who still oppose the bill nevertheless said they will continue to participate in negotiations to try to get to yes — even if those talks don't proceed at the pace Trump prefers.
LaLota said he is "eager to have more discussions with my leadership about how we can meet the goal."
Axios' Victoria Knight contributed reporting for this story.
Editor's note: This story has been updated with additional reporting.
Business reputation is eroding due to consumer concerns about rising costs, according to this year's Axios Harris Poll 100, which assigns reputation scores based on seven categories like trust, products and services, vision and culture.
Why it matters: Companies that have kept costs low while standing firm on their corporate values rank highest on this year's list.
State of play: Trader Joe's, the low-cost grocer known for being values-focused, ranks No. 1 on the list and saw a 3.5-point increase in its reputation score since last year.
Costco ranks in the top 5, and Arizona Beverage Co., known for its 99-cent iced tea, joined the list for the first time, coming in at No. 7.
The big picture: Consumer sentiment is in free fall,according to a new University of Michigan report.
Inflation expectations are higher than those reported in 2022, with respondents pointing to tariffs as potentially inflationary and economically damaging.
This comes amid Treasury Secretary Scott Bessent's acknowledgement on Sunday that some consumer prices will likely rise due to tariffs.
By the numbers: Spiraling consumer sentiment is likely to impact business reputation and favorability, according to the Harris Poll survey.
78% of Americans have noticed the increasing costs of groceries.
Meanwhile, 4 in 10 Americans say their overall opinion of companies is declining, with most pointing to inflation as the top reason.
However, those surveyed also say that companies with strong values are better protected from reputational damage.
What they're saying: The companies ranking highest on the list are "delivering value through their values," says John Gerzema, CEO of the Harris Poll.
"Americans have shifted their attention almost singularly toward inflation and high prices. And so now, corporate reputation is make or break on allyship: Are they looking out for my bottom line or theirs? The companies that are thriving [this] year are intentional, empathic and most of all, dependable."
Zoom in: Clear and consistent corporate values can serve as a safety net, according to the survey.
Costco (No. 5) made headlines for upholding its commitments to diversity, equity and inclusion, while Patagonia (No. 2) is known for its pledge to fight climate change.
Meanwhile, companies that are viewed by consumers as leaning toward one political ideology — like Ben & Jerry's (No. 24) or Chick-fil-A (No. 26) — rank highly.
Zoom out: Potential price increases threaten the reputation of budget-friendly companies like Dollar Tree (No. 75), Dollar General (No. 85) and Spirit Airlines (No. 100), per the rankings.
Both dollar stores anticipate disruptions or added costs brought on by President Trump's tariff policies, while Spirit Airlines has introduced premium fares.
Meanwhile, Chinese e-commerce companies like Temu (No. 90) and Shein (No. 94) are particularly exposed to tariffs, dropping in score to sit in the ranking's bottom 10%.
What to watch: While corporate leaders are signaling potential price increases due to Trump's trade policies, few have publicly opposed the tariffs.
According to the Harris Poll survey, more than half of Americans say their opinion of companies would improve if they spoke out against tariffs.
MAGA ally Elon Musk said on Tuesday that he plans to spend "a lot less" on political donations moving forward after funneling millions into Donald Trump's 2024 presidential campaign.
The big picture: The comment from the richest man in the world could come as a disappointment for Republicans in 2026.
Musk spent more than $250 million in a push to return Trump to the White House.
Driving the news: When asked at the Qatar Economic Forum if he would continue spending at such high levels in future elections, he said he thinks that "in terms of political spending, I'm going to do a lot less in the future."
Pressed on why, Musk replied, "I think I've done enough."
Yes, but: The Tesla CEO, who appeared virtually for the conversation, said if he sees "a reason" to spend, he will. However, he added, "I do not currently see a reason."
Zoom out: Musk endorsed Trump last year after the Butler, Pennsylvania, assassination attempt and later became a key — yet highly controversial — GOP megadonor.
Musk's lottery offering $1 million prizes to registered voters in swing states was scrutinized as legally questionable during the 2024 race, and the eyebrow-raising giveaways made a comeback during the closely watched Wisconsin Supreme Court race earlier this year.
Musk poured millions into the election, only to see the conservative-backed candidate defeated in the most expensive judicial race in U.S. history.
Catch up quick: Musk has led a DOGE-driven crusade against so-called government "waste," directing a massive upheaval of the federal government during Trump's second term that's seen thousands of workers ousted from their jobs and carved out massive spending cuts.
The chaos has left him with a wounded reputation and prompted brand blowback, Axios' Zachary Basu reports.
That's triggered protests and, in some cases, vandalism involving Tesla cars and showrooms. Musk on Tuesday said, "[w]e are coming for those who organized the violence & death threats against Tesla."
President Trump has been frustrated by the ongoing war in Gaza and upset by images of suffering of Palestinian children, and has told his aides to tell Israeli Prime Minister Benjamin Netanyahu he wants him to wrap it up, two White House officials tell Axios.
Why it matters: U.S. and Israeli officials deny that Trump is prepared to "abandon" Israel, or that he is applying intense pressure on Netanyahu. But they admit there are growing policy differences between a president who wants to end the war and a prime minister who is massively expanding it.
"The president is frustrated about what is happening in Gaza. He wants the war to end, he wants the hostages to come home, he wants aid to go in and he wants to start rebuilding Gaza," one White House official said.
Driving the news: In the days since Trump's trip to the region, the U.S. has been pressing both Israel and Hamas to accept a new proposal presented by White House envoy Steve Witkoff for a hostage and ceasefire deal.
Witkoff has been speaking directly with Netanyahu and his top adviser Ron Dermer, and to Hamas leadership through a backchannel facilitated by Palestinian-American businessman Bishara Bahbah.
The negotiations have shown little progress. Meanwhile, the Israel Defense Forces are proceeding with an operation to displace all 2 million Palestinians in Gaza to a "humanitarian zone" and flatten most of the enclave.
The logjam in the talks and the situation on the ground convinced Vice President Vance to scrap plans for a visit to Israel this week. His decision sheds light on how the U.S. feels about the current Israeli policy in Gaza.
The other side: An Israeli official told Axios that at the moment, Netanyahu doesn't feel strong pressure from Trump. "If the president wants a hostage and ceasefire deal in Gaza he needs to put much more pressure on both sides," the official said.
Other leaders are attempting to apply pressure. The leaders of the U.K., France and Canada issued a statement on Monday threatening to take steps against Israel over the war in Gaza.
"We will not stand by while the Netanyahu Government pursues these egregious actions. If Israel does not cease the renewed military offensive and lift its restrictions on humanitarian aid, we will take further concrete actions in response" they said.
Netanyahu rejected their call and accused "the leaders in London, Ottawa and Paris" of "offering a huge prize for the genocidal attack on Israel on October 7 while inviting more such atrocities."
The latest: The British government announced on Monday that it is suspending free trade deal negotiations with Israel, imposed new sanctions on Israeli settlers involved in attacks on Palestinians in the West Bank and summoned the Israeli ambassador to the Foreign Office in London.
State of play: One area where Trump has put pressure on Netanyahu over the last two weeks is Israel's total freeze on humanitarian aid deliveries to Gaza.
A White House official told Axios the president was upset by pictures of suffering children and babies in Gaza and pressed the Israelis to reopen the gates.
On Sunday, the Israeli cabinet approved the resumption of aid deliveries to Gaza and on Monday a dozen trucks with baby food and other supplies entered the enclave. The White House official said more needs to be done.
The UN has warned that thousands of children are at risk of starvation if aid does not significantly increase. More than 55,000 Palestinians have been killed during the war, according to the health ministry in Hamas-run Gaza.
Behind the scenes: While Trump felt his Middle East trip was a success, he believes the war in Gaza is holding back his plans for the region, a senior White House official said.
"The President sees a real chance for peace and prosperity in the region, but the war in Gaza is the last hot spot and he wants it to end," the White House official said.
The second White House official described the war as a distraction from other things Trump wants to do. "There is a lot of frustration by this crisis getting dragged on."
The official said Trump's decision to move unilaterally to secure the release of American-Israeli hostage Edan Alexander, rather than waiting for Israel to agree to a broader dael, was a result of this frustration.
What they are saying: "The President may be saying, 'Hey, listen, let's try to end the war,' he might speak strongly… But his support is ironclad," Trump hostage response envoy Adan Boehler told Fox News on Monday. He stressed that a Washington Post report claiming the administration threatened to "abandon" Israel was "fake."
White House press secretary Karoline Leavitt told reporters Monday that Trump had "made it very clear to Hamas that he wanted to see all hostages released" and "made it very clear he wants to see this conflict in the region end."
President Trump warned congressional Republicans on Tuesday not to "f**k around" with Medicaid, a stark pushback to conservative lawmakers demanding steeper cuts to the program in "one big, beautiful bill."
Why it matters: Trump is already floating political retribution for Republican holdouts who don't get in line.
He also tore into Rep. Thomas Massie (R-Ky.), who has been a firm "no" on the bill throughout the process, blasting him publicly and privately as a "grandstander" and saying he should be "voted out of office."
Trump also warned the GOP's blue state holdouts not to push too hard on the SALT deduction cap.
The big picture: Millions of people could lose health coverage if the current reconciliation bill's Medicaid cuts become law.
"President Trump and Republicans are protecting and preserving Medicaid for the Americans who the program was intended to be a lifeline for: pregnant women, children, disabled individuals, and seniors," White House spokesperson Kush Desai told Axios' Emily Peck.
That White House list of people who need Medicaid doesn't include the poorer working-age adults without kids who gained coverage under the Affordable Care Act's expansion of Medicaid.
This is a breaking news story and will be updated.
House Speaker Mike Johnson offered GOP holdouts a detailed proposal on Monday to set the SALT deduction cap at $40,000 for anyone who makes less than $751,600 a year.
Why it matters: But Johnson (R-La.) also offered the SALT members an entirely different option: Figure out the math yourself, he said, according to a person familiar with the matter.
Johnson offered a crucial caveat: they still need to stay within the fiscal constraints of the Ways and Means framework, which has only has a set amount of money to spend on the SALT portion for the tax portions of the bill.
Johnson needs to resolve the SALT issue this week, but he doesn't have unlimited money to do it with.
"We continue to work on it," Johnson told reporters last night. "It's not a final resolution yet and I think we're getting very close."
Punchbowl News first reported, on X, some of the details in Johnson's offer.
Driving the news: Members of the SALT caucus appeared to be more interested in Johnson's second option.
Rep. Andrew Garbarino (R-N.Y.) told reporters last night that "we have to follow up with Joint Committee on Tax and CBO on" on how much different proposals will cost.
"They hope to have some numbers back to us by the morning."
Zoom out: Johnson wants to signal flexibility to the half-a-dozen members who are threatening to vote against President Trump's one big, beautiful bill if they don't get more relief for their constituents who are hit with high taxes in blue states.
The SALT caucus had been eyeing an additional $200 billion in headspace based on the Ways and Means instructions to authorize a total of $4 trillion in spending.
By the numbers: There are firm income limits and phase-out in Johnson's proposal, according to the person familiar with the matter.
For years 1-4: The deduction would be at $40,000 for anyone making less than $751,600. That includes individual and joint-filers.
For anyone making more than roughly $850,000, the deduction would be $10,000, with a $20,000 deduction at the $800,000 threshold.
Then starting in year five, both the deduction and the income levels drop.
For anyone making less than $400,000 a year, the cap is at $30,000 in state and local taxes.
For anyone in the $400,000 to $450,000 range, the deduction would be $20,000. For $500,000 and up, the deduction is back at the $10,000 level.
Usually, there's at least one big group that stands to benefit from White House economic policy: businesses, workers or consumers.
Why it matters: In this moment, it's not exactly clear who wins from the current administration's triple play of raising tariffs, cutting workplace regulations, and cracking down on immigration.
State of play: President Trump lashed out at Walmart last weekend, after the company said it would be forced to raise prices to handle higher tariff costs.
The retailer is the latest company to run into the buzzsaw of the White House trade agenda.
The big picture: The White House says its agenda spurs investments that benefit consumers and workers, but shifting trade policy, combined with other fast-paced changes, is creating uncertainty that's roiling almost all corners of the economy.
Zoom in: "We've been rocked very hard by the tariffs," says Jonathan Silva, co-owner of WS Game Company, an upscale board-game business that his father started 25 years ago.
Since "Liberation Day" in April, Silva's raised prices for games, halted all shipments from China, taken a pay cut, and paused retirement benefit contributions for the Massachusetts-based company's 22 employees.
Now that the most onerous China tariffs have been lifted, the race is on to ship inventory in the next 90 days before the holiday season. He's worried about shipping companies jacking up costs as demand spikes.
"No matter what happens, the writing's on the wall that with an executive order, things can change on, you know, on just a random Monday."
Workers, meanwhile, haven't caught much of a break either. Small business employees, such as those working for Silva, are in a bad spot. Many more are concerned about holding on to their jobs.
It's not just them. Tens of thousands of federal workers have been fired, with many more on deck. Those in unions are fighting to keep their right to collective bargaining.
The harsher situation for public workers is also trickling down to the private sector, where management is newly emboldened to crack the whip, as Axios and the Wall Street Journal have reported.
Other changes have hurt, too, like weakening agencies critical to worker protections and reducing the minimum wage for federal contractors.
As for consumers? Tariffs typically mean higher prices. The duties raise input costs for companies, making it more expensive to produce and sell goods, which means higher prices for working people.
Nobody seems to benefit, former Treasury Secretary Larry Summers tells Axios, who says the likelihood is that the tariffs "are going to createfewer good-paying jobs."
Looking for winners
Reality check: For all the dire recession warnings, the overall hard data show the economy in good shape.
The unemployment rate is still low, and inflation is easing.
Between the lines: The White House seeks to position itself as both pro-business and pro-worker.
The coming "big beautiful" tax bill is getting positioned as a big win for businesses and working people, who may wind up with some nice new breaks, including no taxes on tips and a higher standard deduction.
And those easier regulations are often a win for businesses. The share of executives who say they're concerned about labor regulations fell to 56% this year, down from 73%, per a recent survey from Littler Mendelson, the employment law firm.
In a recent press release, the White House pointed to a Wall Street Journal story that reports some small and midsize U.S. manufacturers are actually seeing increasedbusiness due to tariffs.
For the record: "The Trump administration is slashing costly regulations, lowering energy prices, cutting Joe Biden's runaway spending that sparked inflation, negotiating better trade deals, and spurring trillions in historic investment commitments, including in sectors critical to our national and economic security," White House spokesman Kush Desai says.
"Any 'economist' who can't understand how this agenda is benefitting American workers and industries, as the data proves is already happening, should find a new profession."
The bottom line: Critics argue the small pockets of victory don't seem to outweigh the downsides.
Some pockets of businesses want certain tariffs in place, acknowledges Heidi Shierholz, the president of the liberal Economic Policy Institute.
But there isn't a big constituency out there who wanted them to this scale.
