Watching for SCOTUS to Rule on Trump’s Tariffs: Starting Line

Jan. 9, 2026, 12:05 PM UTC

Big Day in Court (Maybe)

Today’s the Supreme Court’s first opinion day of the new year, and since the justices don’t reveal in advance which cases are completed, official Washington will be watching closely to see if President Donald Trump’s tariffs survive the high court’s scrutiny.

Lower courts ruled that Trump exceeded his authority by invoking the 1977 International Emergency Economic Powers Act to justify his sweeping “reciprocal” duties targeting America’s trading partners, as well as separate levies aimed at China, Canada and Mexico.

If the Supreme Court concurs, large swaths of the levies Trump has imposed so far in his second term could come undone and leave the government on the hook for tens of billions of dollars in refunds.

Previously: Trump’s Options If the Supreme Court Says His Tariffs Are Illegal

Second Venezuela Attack Scrapped

Trump said in an early-morning social media post that a second wave of attacks on Venezuela has been canceled, citing improved cooperation from the country, Rachel Evans reports.

  • Venezuela is “working well” with the US on rebuilding its oil and gas infrastructure and releasing “large numbers” of political prisoners, Trump wrote on Truth Social. That means another wave of strikes doesn’t appear necessary, he said. Read More

Also Read: Maduro Attorney Says Ex-DOJ Lawyer Unauthorized to Join Defense

The announcement comes after the Senate dealt a rare rebuke to Trump over Venezuela amid mounting concerns among Republicans about a long-term commitments abroad. Five Republicans crossed party lines to join with Democrats for Thursday’s vote to advance legislation opposing further military action. The Senate will hold a final vote on the measure next week. If it passes, it heads to the House, which is likely to block the measure.

Still, the legislation sends a symbolic message that lawmakers aren’t necessarily willing to rubber-stamp the administration’s military operations and are taking steps to claw back their authority. Read More

Senators are also planning to introduce resolutions to prevent military action in other countries without congressional authorization as Trump officials have teased the possibility of further operations. Sen. Ruben Gallego (D-Ariz.) said he is proposing a resolution to block Trump from invading Greenland. Sen. Tim Kaine (D-Va.) said he expects to see war powers resolutions on Cuba, Mexico, Colombia, and Nigeria. Read More

Inside the White House, Stephen Miller’s leading role in mapping out the Trump administration’s Venezuela strategy is the latest sign of his influence.

Trump Meets With Oil Execs

More than a dozen US oil bosses have been summoned to the White House today to hear about the president’s vision for leveraging the vast oil resources in Venezuela. The pitch, one person said, will be: “Do it for our country.”

It’s not yet clear which companies will heed Trump’s call to action or what guarantees the US taxpayer may end up having to provide — US oil companies lost billions in Venezuela in the past. Read More

Also Read: Venezuela Oil Investment Would Pay Off Just After US Shale Peaks

Potholes Ahead for Minibus

Looking ahead to next week, Venezuelan oil could be factor in whether the Senate can pass the next “minibus” package of current-year apprpropriations.

Kellie Lunney reports that Democrats plan to offer amendments that would challenge the administration over its plans for the oil as well as a separate White House push to dismantle a climate research lab in Colorado.

Sen. John Hicklooper (D-Colo.) said he expects Republican support for an amendment to restore the center’s full funding. “Having this as a pitched battle between the White House and Colorado is not constructive for anybody,” Hickenlooper said. “And there are many Republicans in the Senate that feel that way.”

The Senate scheduled a procedural vote on the package on Monday. Read More

Also Read: House Passes Three-Bill Spending Package But More Hurdles Await

Subsidies on the Table

Another big question next week will be whether Democrats and moderate Republicans can hit the sweet spot with a compromise bill to revive the expired Obamacare tax credits.

Erin Durkin and Maeve Sheehey report that the proposal being discussed includes a two-year revival of the enhanced subsidies with the addition of an income cap to limit who’s eligible for tax credits.

Those talks got a boost yesterday when the House passed a different subsidy renewal, showing there’s political will to address the premium spikes, especially from Republicans representing swing districts. Read More

In today’s Congress Tracker, Sheehey and Lillianna Byington look at how votes this week contained mixed messages for how far the GOP majorities are willing to go with their loyalty to Trump.

Now Oregon Is Urging Calm

Oregon officials urged people to be calm and called for ICE to cease operations after a federal agent shot and wounded two people in southeast Portland yesterday.

  • “Portland is not a training ground for militarized agents,” Mayor Keith Wilson said at a press conference.

The Department of Homeland Security said a Border Patrol agent in Portland “fired a defensive shot” at a vehicle after the driver “weaponized” it and drove off. Read More

Federal and local officials are also clashing in Minnesota after an ICE agent shot and killed a woman in her car on Wednesday. The FBI is taking control of the investigation over the objections of Governor Tim Walz (D), who said “it feels very, very difficult that we will get a fair outcome.”

As tense protests continued for a second day, Walz ordered the state National Guard to be “staged and ready” to assist with protecting infrastructure and aiding local law enforcement if needed. Read More

More Redistricting

Virginia Democrats, emboldened by sweeping victories in November’s state elections, convene on Wednesday and are ready to move fast on a proposal to tweak congressional district lines before the 2026 election.

Greg Giroux reports that the Democratic-led legislature will vote on a proposed state constitutional amendment to temporarily shift line-drawing responsibilities to the legislature from Virginia’s redistricting commission. Then the amendment would have to win support from Virginia voters in a statewide election at least 90 days after the legislature’s vote.

Only after that could Democrats muscle new maps through a legislature where they’ll have majorities of 64-36 in the House of Delegates and 21-19 in the Senate. Gov.-elect Abigail Spanberger (D), who was elected last November by 15 percentage points, takes office Jan. 17.

Democrats hold six of Virginia’s 11 districts under the current lines. If they respond to the mid-decade redistricting by Texas and other Republican states, the potentially imperiled incumbents would be Reps. Rob Wittman, Jen Kiggans, and John McGuire.

Speaker’s Tight Grip

As Congress-watchers know very well, managing the House floor includes deciding how often to allow votes on proposals with only narrow local impact, or on poison-pill amendments, or measures that, if adopted, would undermine the main point of the bill being amended.

So K. Sophie Will ran the data to get a picture of the floor operation of Speaker Mike Johnson (R-La.) and his team. The numbers show that they say no to consideration of a lot of amendments, but there’s one standout proposal-writer.

Freedom Caucus member Andy Ogles (R-Tenn.) sponsored 335 amendments in the last Congress and tops the list for amendments made in order for consideration on the floor, with 140. Read More

Before You Go

House Votes Fall Short of Veto Overrides as GOP Backs Trump

The House fell short of the necessary votes to override President Donald Trump’s vetoes of two Republican-led bills, as GOP lawmakers lined up behind the president rather than issue a rare rebuke of his agenda.

Trump Tells Fannie, Freddie to Buy $200 Billion of Mortgage Debt

US President Donald Trump is directing Fannie Mae and Freddie Mac to purchase $200 billion in mortgage bonds, a move he cast as his latest effort to bring down housing costs ahead of the November midterm election.

EPA’s Energy Star Program Saved in Latest House Budget Bill

Congress just provided a lifeline to Energy Star, a government-run program that saves homeowners billions of dollars annually, after the Trump administration targeted it for elimination.

California Democrat Brownley Won’t Seek Reelection to House

Rep. Julia Brownley (D-Calif.), who’s been active on veterans issues, isn’t seeking reelection to the House in 2026.

Justice Alito Recuses From Big Oil Case Over Stock Conflict

US Supreme Court Justice Samuel Alito recused from a case involving the oil industry just ahead of oral arguments due to stock ownership in a company involved in the broader dispute.

US Tax Filing Season to Start on Time on January 26

Tax filing season in the US will begin Jan. 26, the IRS said Thursday, starting on time after a year of turmoil with an exodus of workers and a government shutdown.

Meta to Invest in Nuclear Plants in Ohio, Pennsylvania for AI

Meta Platforms Inc. said it will invest in three nuclear power plants as the industry seeks to expand energy production to support artificial intelligence infrastructure.

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Greg Giroux in Washington also contributed to this story.

To contact the reporter on this story: Katherine Rizzo in Washington at krizzo@bgov.com

To contact the editors responsible for this story: Keith Perine at kperine@bloomberglaw.com; Herb Jackson at hjackson@bloombergindustry.com; Kayla Sharpe at ksharpe@bloombergindustry.com

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