Senate Funding Vote, ICE Family Detention Protest, Fed Holds Interest Rates

Summary

Up First (NPR) – January 29, 2026

Main Stories: Senate Government Funding Standoff, ICE Family Detention Protest, Federal Reserve Holds Rates

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Episode Overview

This episode centers on three major news stories making headlines on January 29, 2026:

• The looming threat of a partial government shutdown tied to a Senate fight over Homeland Security funding and immigration enforcement reforms.
• Protests outside a South Texas ICE detention center demanding the release of a detained five-year-old boy, Liam Ramos, and chaos erupting when police in riot gear intervene.
• The Federal Reserve's decision to hold interest rates steady amid rising inflation, layoffs, and increasing political pressure.

Hosted by Steve Inskeep and Layla Fothel, the episode features reporting and analysis from NPR’s Claudia Grisales, Joey Palacios (Texas Public Radio), and Scott Horsley.

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1. Senate Funding Vote & Immigration Enforcement Standoff

Main Theme:
A tense battle in the Senate over Homeland Security funding, driven by demands for changes in immigration enforcement after a high-profile killing by federal agents.

Key Points & Insights

• Democrats’ Stand on DHS Funding:

  • Senate Democrats, led by Minority Leader Chuck Schumer, say they'll block government funding for the Department of Homeland Security (DHS) unless there are "common sense" reforms to rein in ICE and increase accountability.

    “Senate Democrats are united. We need to rein in ICE and end the violence.”
    — Senator Chuck Schumer (00:05, 02:28)

• Catalyst for Tensions:

  • The situation escalated after federal immigration officers shot and killed Alex Preddy in Minneapolis the previous weekend.

• Proposed Reforms:

  • Demands include:
    • Splitting off DHS funding from the other five government spending bills.
    • New warrant requirements.
    • Tighter cooperation with local law enforcement.
    • Uniform code of conduct and use-of-force rules.
    • More accountability: “taking off the masks and putting body cameras on.”
  • Claudia Grisales notes these are substantial changes difficult to pass quickly.

    "It takes months to negotiate these bipartisan funding packages...it’s a tall order."
    — Claudia Grisales (04:16, 04:24)

• Republican Response:

  • GOP leaders argue the spending package can't be split.

    “If possible, to do it here, not to have to send it back to the House of Representatives, where the future of an appropriations package I think would be somewhat uncertain.”
    — Scott Horsley paraphrasing Senate GOP position (04:47-04:57)

  • However, some Republican senators privately support action, signaling political pressure for reform after Preddy’s death.

• Possible Off-ramps:

  • Potential for executive orders by the White House, but Democrats prefer legislative solutions, fearing executive action would lack permanence.

    “Many Democrats don’t trust something that does not become law. That sets up this stalemate with no clear solution at the moment.”
    — Claudia Grisales (05:40)

Notable Moment

• Claudia Grisales offers a succinct summary of the gridlock and its urgency:

  “Otherwise, we could see other parts of the government, in addition to DHS, like the Defense Department, Health and Human Services, lose funding starting this weekend.”
  — Claudia Grisales (03:55)

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2. ICE Family Detention Protest in Texas

Main Theme:
A protest demanding release of a detained five-year-old and his father at a Texas ICE facility erupts into chaos when law enforcement deploys riot gear and pepper balls.

Key Points & Insights

• Who Is Liam Ramos?

  • Five-year-old Liam Ramos became a symbol of the immigration debate after a photo of him in a bunny ear hat being led away by agents went viral.
  • Liam and his father, originally detained in Minnesota, are now held hundreds of miles away in Texas.

• Description of Protest Events:

  • Nearly 200 protesters, including families and activists, marched to the gates of the Dilly, TX, Family Residential Center.

  • Initially peaceful, with signs like “Abolish ICE” and chants calling for Liam’s release.

  • Tensions escalated as police in riot gear formed a line; pepper balls and smoke were used for crowd dispersal.

    “It was like breathing hot sauce. It was not pleasant.”
    — Joey Palacios (07:08-08:03)

  • Texas DPS reports two arrests for resisting and interfering with public duties.

• Congressional Response:

  • Rep. Joaquin Castro and Rep. Jasmine Crockett visited Liam and his father; Castro describes Liam as physically and emotionally affected:

    “He was lying in his father’s arms. His father said that Liam has been very depressed since he’s been in Dilly, that he hasn’t been eating well...has been asking about his family, his mom and his classmates, and saying that he wants to go be back in school.”
    — Rep. Joaquin Castro via Joey Palacios (08:27)

• Earlier Protests Inside Facility:

  • Detainees—many children—chanted “libertad” (freedom now) after an attorney was asked to leave.
  • The attorney, Eric Lee, says the protest was fueled by concerns about Liam as well as general conditions for children.

• Official Statements & Contradictions:

  • DHS claims agents followed the law, but school officials and bystanders dispute the official account of Liam’s detention.
  • A federal court order currently bars the removal or deportation of Liam and his father while their case proceeds.

Notable Moment

• The disconnect between official statements and eyewitness reports is underscored:

  “We should note that bystanders and school board officials who witnessed the incident have contradicted DHS’s version of events.”
  — Joey Palacios (09:52)

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3. Federal Reserve Holds Interest Rates Steady

Main Theme:
The Federal Reserve pausing rate hikes amid a struggling job market, persistent inflation, and mounting political pressure from President Trump.

Key Points & Insights

• Fed’s Stated Rationale:

  • Despite layoffs (Amazon, UPS, etc.), unemployment remains low (4.4% in December).
  • The Fed’s priority is controlling inflation, which remains above their 2% target.

    “The best thing we can do for people who are feeling that squeeze is to keep inflation under control and, frankly, to finish the job of getting inflation back down to 2%.”
    — Fed Chair Jerome Powell (11:36)

• Impact of Tariffs:

  • Higher inflation “overshoot” attributed to new tariffs from President Trump.
  • Powell expects more price hikes in the short term due to tariffs, but inflation may ease if no further tariffs are imposed.

    “A big reason for that overshoot is President Trump’s tariffs...some more tariff-related price hikes in the coming months.”
    — Scott Horsley (11:49)

• Political Pressure from Trump:

  • Trump has tried to influence the Fed via threats, attempted dismissals, and DOJ investigations—so far without impact.

    “By design, the Fed is supposed to be insulated from that kind of political influence.”
    — Scott Horsley (12:18) “Every advanced economy, democracy in the world has come around to this common practice...not to have direct elected official control over the setting of monetary policy.”
    — Jerome Powell (12:48)

• Looking Ahead:

  • Powell’s term ends in May; Trump is expected to nominate a replacement who favors lower rates.
  • New appointees may struggle to move the board, as past Trump appointee Stephen Myron repeatedly pushed for rate cuts that were rejected by colleagues.

Notable Moment

• The challenge ahead for the next Fed chair is made clear:

  “Whoever the president chooses is going to face questions about whether they can act independently or if they’re simply going to do Trump’s bidding.”
  — Scott Horsley (13:18)

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Timestamps for Major Segments

• Senate Funding Vote and Immigration (Schumer's Demand, Package Breakdown, Impact of Preddy Killing):
  00:02 – 05:47

• ICE Family Detention Protest (Dilly, TX, Escalation, Response, Conditions):
  05:55 – 10:32

• Federal Reserve Interest Rate Decision (Layoffs, Inflation, Tariffs, Trump's Pressure):
  10:41 – 13:56

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Memorable Quotes

• “Senate Democrats are united. We need to rein in ICE and end the violence.”
  — Senator Chuck Schumer (00:05, 02:28)

• “It was like breathing hot sauce. It was not pleasant.”
  — Joey Palacios, describing pepper ball dispersal at the protest (08:03)

• “He was lying in his father’s arms...been asking about his family, his mom and his classmates, and saying that he wants to go be back in school with his classmates.”
  — Rep. Joaquin Castro reporting on Liam Ramos (08:27)

• “We do hear a lot about affordability and we take that very seriously and we take it to heart. The best thing we can do...is to keep inflation under control and...finish the job of getting inflation back down to 2%.”
  — Jerome Powell, Fed Chair (11:36)

• “Every advanced economy, democracy in the world has come around to this common practice...not to have direct elected official control over the setting of monetary policy.”
  — Jerome Powell (12:48)

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Tone and Takeaways

The episode maintains NPR’s hallmark of calm, clear, and non-hyperbolic reporting. The language is precise, with a focus on the complexity of legislative impasses, the human cost and emotional toll of immigration enforcement, and the tension between economic policy and political pressures. Listeners are left with a strong sense of the interconnectedness between national policy debates and personal, human stories.

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This summary covers all substantive content and skips over ad breaks, intros, and outros to focus on the stories’ details and key developments.

Transcript

[Steve Inskeep]

Senator Chuck Schumer threatens a partial government shutdown.

[Senator Chuck Schumer]

Senate Democrats are united. We need to rein in ICE and end the violence.

[Layla Fothel]

They'll block Homeland Security funding until there are limits on immigration agents.

[Steve Inskeep]

I'm Steve Inskeep with Layla Fothel. And this is up first from NPR News. A protest outside an ICE family detention center in South Texas turned chaotic after police in riot gear appeared. Demonstrators demand the release of five year old Liam Ramos, who was detained with his father hundreds of miles away in Minnesota.

[Layla Fothel]

And despite pressure from President Trump, the Federal Reserve is holding interest rates steady as prices keep climbing and more people see layoffs.

[Jerome Powell]

The best thing we can do for people who are feeling that squeeze is to keep inflation under control.

[Layla Fothel]

Stay with us. We'll give you the news you need to start your day.

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This message comes from BetterHelp. The new year isn't about doing more, it's about carrying less. Therapy can help you unpack what's been heavy and bring more clarity, calm and perspective into 2026. It's a small act that can lead to big relief and real perspective for the year ahead. You can't step into a lighter version of yourself without leaving behind what's been weighing you down. Visit betterhelp.com NPR for 10% off support for NPR and the following message come from Warby Parker. The One Stop Shop for all your vision needs. They offer expertly crafted prescription eyewear plus contacts, eye exams and more for everything you need to see. Visit your nearest Warby Parker store or head to warbyparker.com Senate Democrats say they're.

[Steve Inskeep]

Going to block a government funding package that includes money for the Department of Homeland Security until there are reforms to how immigration agents are working in this country.

[Layla Fothel]

Senate Minority Leader Chuck Schumer spoke with reporters in the Capitol yesterday.

[Senator Chuck Schumer]

Senate Democrats are united on a set of common sense and necessary policy goals that we need to rein in ICE and end the violence.

[Steve Inskeep]

Either lawmakers make some agreement or there will be another partial government shutdown at the end of the day on Friday.

[Layla Fothel]

NPR congressional correspondent Claudia Grisadis has been following this and joins us Now. Good morning, Claudia.

[Claudia Grisales]

Good morning, Leila.

[Layla Fothel]

Okay, so this same package passed with significant bipartisan support last week in the House. But then we saw the killing of Alex Preddy over the weekend in Minneapolis by federal agents. So how did that change what we expect to happen in the Senate?

[Claudia Grisales]

Well, in some ways, it changed everything. The Senate is supposed to vote today to advance this $1.3 trillion package. It's a six bill package, and one of those funds DHS, while the other five addresses other parts of the government. And yesterday we heard Democrats detail this list of reforms. They want to see input implemented before they support the DHS funding after federal immigration officers shot and killed Alex Preddy in Minneapolis over the weekend.

[Layla Fothel]

So what are they asking for?

[Claudia Grisales]

They want to pass those five other spending bills in the package and leave DHS out while they renegotiate those terms. Schumer told reporters he also wants new rules set around warrants. He wants tightened cooperation with local law enforcement, create a new uniform code of conduct, as well as use of force rules. They want more accountability and transparency, including taking off the masks and putting body cameras on. But it's unclear if the Senate can reach a deal on this in time. Otherwise, we could see other parts of the government, in addition to dhs, like the Defense Department Health and Human Services law, lose funding starting this weekend.

[Layla Fothel]

And it. It takes months to negotiate these bipartisan funding packages. So is it even possible for them to pass those kinds of changes at this point?

[Claudia Grisales]

Well, it is a tall order. The Senate would need consent from all of its members to split up these bills, perhaps setting up a series of new votes, renegotiated DHS bill in time to try and pass it.

[Layla Fothel]

And how have Republicans responded?

[Claudia Grisales]

Well, Thune and other leaders maintain they can't split this package up. They know it would be a hard pass in the House.

[Joey Palacios]

Here's th I think it's really important.

[Scott Horsley]

If possible, to do it here, not to have to send it back to.

[Joey Palacios]

The House of Representatives, where the future of an appropriations package I think, would be somewhat uncertain.

[Claudia Grisales]

But we should note we heard some mixed signals last night. Some rank and file Republican senators said they're on board. I heard one say at least a bunch of his colleagues would agree to the move. So it's an indicator of how at least some Republicans see this as a high political stakes moment to respond to Freddie's death.

[Layla Fothel]

Are there any other ways they could come to a solution without the risk of this partial shutdown?

[Claudia Grisales]

Well, Thune is one key Republican saying yes. He says Democrats seem to work this out directly with the White House. Some suggest that could come in the form of executive orders. So we're watching ongoing conversations between Schumer, other Democrats in the White House for any clues of a different off ramp. But we should note many Democrats don't trust something that does not become law. That sets up this stalemate with no clear solution at the moment.

[Layla Fothel]

That's NPR's Claudia Grisales. Thank you so much. So much.

[Claudia Grisales]

Thank you.

[Layla Fothel]

Police with riot gear confronted nearly 200 protesters on Wednesday in South Texas. They were outside an ICE family detention center.

[Steve Inskeep]

The protesters want the release of five year old Liam Ramos and his father. They were detained in Minnesota last week and taken there.

[Layla Fothel]

Yeah. Ramos is the little boy in that now iconic image wearing a bunny ear hat and being let off by immigration agents. Now, Joey Palacios with Texas Public Radio was there covering that protest and joins us now. Hey, Joey, what happened?

[Joey Palacios]

Hey, good morning. So this was at the South Texas Family Residential center in Dilly, Texas. That's about 70 miles southwest of San Antonio. And as the name says, it's for detained immigrant families. Now, this protest that happened, it was peaceful. There was chanting. There were people holding signs that said abolish ICE or bring Liam home. And here there were people of all ages. It started at a city park and they marched to the front gate of the city center that was about two miles away. There they were met by a handful of state troopers. And behind those State troopers about 60ft away were about a dozen masked ICE agents. Gabrielle Felix was one of the protesters who came because of Liam Ramos.

[Senator Chuck Schumer]

I think it's absolutely disgusting. I mean, he's five years old and they took him from his home in Minneapolis and pretty much brought him down here.

[Joey Palacios]

So and then all of a sudden, as these folks were at the gate of the center, a school bus drove up and it was full of state troopers in riot gear. They formed a line and then began moving towards protesters. And there was some, some pushing back and forth. And then there was like this pop, pop, pop and they started to use pepper balls to disperse the crowd. There were more. There was another loud pop and a lot of, of white smoke. And it started to hit me and our producer Sam, as well as other protesters and other media there. And it was hard to breathe. We couldn't see Layla. It was like breathing hot sauce. It was not pleasant. And in the end, Texas DPS said that two people were arrested for resisting arrests and interfering with public duties.

[Layla Fothel]

Now, Congressman Joaquin Castro from San Antonio toured the facility yesterday and met with Liam Ramos and his father. What did he say about what he saw?

[Joey Palacios]

Right. So Castro visited the detention center earlier in the day with Congresswoman Jasmine Crockett, and they met with Liam Ramos and his father for about 30 minutes. And Castro said the boy appeared physically and emotionally affected by his detention.

[Senator Chuck Schumer]

He was lying in his father's arms. His father said that Liam has been very depressed since he's been a dilly, that he hasn't been eating well. His father said that Liam has been sleeping a lot, that he's been asking about his family, his mom and his classmates, and saying that he wants to go be back in school with his classmates.

[Joey Palacios]

Castro said the family entered the US Legally and are waiting for their asylum case. And earlier this week, on Monday, Liam Ramos mother in Minnesota said that her son is getting sick from the quality of food in the facility.

[Layla Fothel]

Now this facility also had a protest inside by detainees last week. What happened there?

[Joey Palacios]

That's right. So this one started after guards ordered an immigration attorney to leave while detainees, many of them children, poured into open areas of the center and chanted libertad or freedom Now. This is according to that attorney who captured it on his phone. Later, there was drone footage by the Associated Press that showed large crowds in the outside portions of the facility. Now, attorney Eric Lee said his clients that he later spoke with told him the detainee protests also was triggered by concerns over the treatment of Liam Ramos and the overall conditions at the facility for the other children.

[Layla Fothel]

So, Joey, what are ICE officials saying about this case?

[Joey Palacios]

So ICE didn't respond to our request for comment, but the Department of Homeland Security has said that the child was taken into custody after his father fled in encounter with agents. DHS says agents followed federal law and standard enforcement procedures in the case. But we should note that bystanders and school board officials who witnessed the incident have contradicted DHS's version of events. Now, a federal judge in San Antonio ruled this week that Liam Ramos and his father cannot be removed or transferred from the facility while the court case for their release continues. It also pauses any attempt to deport them.

[Layla Fothel]

Joey Palacios with Texas Public Radio, thank you for your reporting.

[Joey Palacios]

Thanks, Leila.

[Layla Fothel]

The cost of borrowing money is holding steady for now.

[Steve Inskeep]

Policymakers at the Federal Reserve voted to leave interest rates unchanged this week. The Fed is trying to strike a balance between keeping interest rates high enough to fight inflation, but not so high as to cause a spike in unemployment.

[Layla Fothel]

NPR's Scott Horsley joins us now. Hey, Scott.

[Scott Horsley]

Good morning.

[Layla Fothel]

Good morning. So worries about the job market caused the Fed to lower interest rates the last three times the board met. Have those worries gone away?

[Scott Horsley]

Not entirely. We're still seeing pretty weak hiring in the job market. Just this week, Amazon and UPS announced big layoffs. That said, unemployment is still relatively low, just 4.4% in December. And the Fed says there are some signs that the unemployment rate is stabilizing. So for the moment, the central bank is putting its focus on inflation and prices that are still going up faster than Fed Chairman Jerome Powell and his colleagues would like.

[Jerome Powell]

We do hear a lot about affordability and we take that very seriously and we take it to heart. The best thing we can do for people who are feeling that squeeze is to keep inflation under control and, you know, frankly, to finish the job of getting inflation back down to 2%.

[Scott Horsley]

Inflation was more like 3% in December, according to the Fed's preferred yardstick. And Powell says a big reason for that overshoot is President Trump's tariffs. Now, US Importers have absorbed some of the tariff costs. So far, they have it all found their way into consumer prices. Powell thinks we are going to see some more tariff related price hikes in the coming months. But after that, inflation might settle down unless we get a whole bunch of new tariffs.

[Layla Fothel]

Now, President Trump has been leaning hard on the Fed to make deeper cuts in interest rates. What effect is that happening?

[Scott Horsley]

Not a whole lot, at least. Yet Trump has tried to fire a member of the Fed's governing board. He's threatened to fire Powell himself. The Justice Department even launched an investigation to the Fed over the cost of a building project here in Washington. The although Powell says that was really just a pretext and another way to put pressure on the central bank. By design, the Fed is supposed to be insulated from that kind of political influence. Powell says history shows central banks do a better job of fighting inflation when they're not under the thumb of elected leaders.

[Jerome Powell]

Every advanced economy, democracy in the world has come around to this common practice, and that is to not have direct elected official control over the setting of monetary policy.

[Scott Horsley]

That's because politicians will almost always favor lower interest rates to juice the economy before the next election, even if higher rates might be better for the long term health of the economy.

[Layla Fothel]

Now, Powell's days as Fed chairman are numbered. Do we know yet who's going to take his place?

[Scott Horsley]

Not yet. The President is expected to nominate a new Fed chairman pretty soon. Powell's term is up in May, so he's got two more rate setting meetings before he gives up his leadership post. Trump clearly wants a replacement who will push for lower interest rates. And whoever the president chooses is going to face questions about whether they can act independently or if they're simply going to do Trump's bidding. One thing to keep in mind, though, the Fed chair is just 1 vote among 12 people on the rate setting committee, and that person may have limited sway over his colleagues. You know, Trump named a White House economist, Stephen Myron, to the Fed board last fall. Myron voted at three straight meetings for a supersized half point rate cut, but none of his colleagues went along.

[Layla Fothel]

NPR's Scott Horsley. Thank you, Scott.

[Scott Horsley]

You're welcome.

[Layla Fothel]

And that's up first for Thursday, January 29th. I'm La Falden.

[Steve Inskeep]

And I'm Steve Inskeep. Up first gives you the three big stories of the day. Consider this from NPR News dives into a single news story and what it means to you. Learn about a big story of the day. And it's also brief, less than 15 minutes like this podcast, podcasts that respect your time. You actually get to the end. Listen on the NPR app or wherever you get your podcasts.

[Layla Fothel]

Today's episode of up first was edited by Kelsey Snell, Susanna Capilouto, Raphael Nam, Mohammed Alberdisi and Alice Wolfley. It was produced by Ziad Butch, Nia Dumas, Eva Pukech and Christopher Thomas. We get engineering support from Nisha Hyness. Our technical director is Carly Strange. Our deputy executive producer is Kelly Dickens. Join us again tomorrow.

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