WSJ What’s News: How Trump’s Agenda Could Fare in Congress
Released on December 11, 2024

The latest episode of The Wall Street Journal’s What’s News delves into President-elect Donald Trump’s strategic plans and the challenges his agenda may face within a narrowly controlled GOP majority in Congress. Hosted by Luke Vargas, the episode features insightful analyses from congressional reporter Siobhan Hughes and other experts, providing listeners with a comprehensive overview of the political landscape shaping Trump’s forthcoming administration.

Trump’s Vision for the Federal Trade Commission

President-elect Donald Trump has signaled significant changes within the Federal Trade Commission (FTC). In the opening segment, Luke Vargas reports that Trump plans to elevate Republican lawyer Andrew Ferguson to lead the FTC. Ferguson, who is already an FTC commissioner, would assume the role without needing Senate approval, succeeding Lina Khan. Khan is known for her aggressive stance on antitrust issues, particularly against major tech firms.

Vargas notes, “Ferguson is likely to abandon that approach to mergers, but shares Khan's skepticism of tech companies, posting on X yesterday that he would work to, 'end big tech's vendetta against competition and free speech'” (01:10). Additionally, Trump intends to nominate antitrust lawyer Mark Metter to the FTC commissioner role. If confirmed, Metter’s appointment would grant the GOP a majority on the commission. Metter’s background includes being a former aide to Utah Republican Senator Mike Lee, who has been instrumental in introducing legislation aimed at dismantling Google’s monopoly.

Expediting Large Construction Projects

Trump has also pledged to accelerate the approval process for large construction projects to stimulate economic growth. Posting on Truth Social, he declared that any individual or company investing $1 billion or more in the U.S. "will receive fully expedited approvals and permits, including, but in no way limited to all environmental approvals" (01:50). Jason Miller, Trump’s senior adviser, elaborated on this initiative during the Journal's CEO Council summit in Washington, emphasizing a "golden age of regulation cutting" aimed at attracting both domestic and foreign investments (02:10).

However, Vargas highlights potential legal hurdles: "It's not clear Trump will have legal authority to bypass permitting and environmental rules and state and local oversight. Court battles and the need for congressional approval could complicate the push" (02:30). Nevertheless, Scott Patterson from the Journal points out that recent bipartisan support for permitting reforms suggests a possible pathway forward (03:00).

GM Abandons Robo Taxi Program

In business news, General Motors (GM) has decided to discontinue its Cruise robo taxi program after nearly a decade and a $10 billion investment. Vargas reports that GM attributes this decision to increasing competition and the escalating time and costs required to scale the autonomous vehicle business. The company plans to integrate Cruise more closely with GM’s technology teams to advance autonomous and assisted driving technologies, leading to a rise in GM’s shares during after-hours trading.

Infowars Sale Rejected

A notable legal development involves the attempted sale of conspiracy platform Infowars. A court has rejected the proposed auction sale to the satirical news outlet The Onion. Infowars was initially put up for sale amid a bankruptcy case resulting from a $1.5 billion judgment against founder Alex Jones for defamation related to false claims about the Sandy Hook school shooting. The Onion’s CEO expressed disappointment and announced plans to pursue the purchase independently, intending to relaunch Infowars as a satirical site (04:50).

Market Movers: Inflation Report and Earnings

Investors are on edge awaiting the November U.S. inflation report, scheduled for release at 8:30 am Eastern Time, with expectations of modest price increases for the second consecutive month. Additionally, Macy's is set to report its earnings this morning, and Adobe will release its results after the market closes, both events likely to influence market movements (05:20).

Congressional Prospects for Trump’s Agenda

A significant portion of the episode focuses on the feasibility of President-elect Trump’s agenda navigating through Congress. Siobhan Hughes provides a detailed analysis of the Republican majorities in both the House and Senate, highlighting the precarious nature of their control.

Narrow Republican Majorities

Hughes explains, “If you thought Republican control in the house in the 118th Congress was slim, wait until you get to the next Congress” (06:05). The House majority stands at a razor-thin 220 to 215, allowing House Republicans to afford losing no more than two votes to pass their agenda, assuming full attendance and Democratic opposition (06:31).

Ideological Divisions within the GOP

The GOP’s ability to support Trump’s initiatives is further complicated by internal ideological divisions. Hughes identifies key issues where disagreements may surface:

• War in Ukraine: There remains a strong pro-Ukraine faction within the Republican Party, raising questions about whether Trump’s administration will sustain this stance or pivot away.

• Tariffs: Concerns persist among Republicans about the economic and inflationary impacts of Trump’s proposed tariff plans, indicating potential friction within the party (07:17).

Tax Reform and Bipartisan Possibilities

Tax reform remains a major priority. Hughes notes, “The 2017 Trump tax cuts...expire at the end of 2025. But a portion of those tax cuts are things that Democrats are going to like, too. And so to some degree, Democrats might be willing to play ball” (08:00). While there is some potential for bipartisan support, particularly for tax cuts that appeal across the aisle, challenges persist:

• Corporate Tax Cuts: Efforts to extend corporate tax cuts face opposition due to projected deficits and concerns over economic inequality.

• Deficit Concerns: With the government having a $1.8 trillion deficit in fiscal 2024, any additional tax cuts are scrutinized for their fiscal impact (08:39).

Border Security as a Top Priority

Border security emerges as a central focus for Republican leaders. Hughes remarks, “Border security is going to be a focal point... Lindsey Graham saying border security is going to come before ext. Tax cuts tells you what a brand new world we are in” (09:27). Trump’s approach to border security is markedly different from previous Republican strategies:

• Mass Deportations and Walls: Trump advocates for extensive measures, including mass deportations and the construction of physical barriers, which diverges from more moderate Republican tactics.

• Fast Track Legislative Approach: To implement his border agenda, Trump aims to utilize a “fast track, muscular approach that allows you to get around the need for a supermajority” (10:18), bypassing traditional legislative hurdles.

Potential Bipartisan Consensus

While internal divisions present challenges, Hughes also explores unconventional bipartisan alliances:

• Health Initiatives: Some Republicans advocate for government investment in health solutions like Ozempic, aligning with Democrats on the benefits despite differing on other issues.

These atypical alliances illustrate the complexity of navigating Trump’s agenda through a fragmented partisan landscape (09:23).

Supply Chain Integrity in the Clothing Industry

In the final segment, Dylan Tokar discusses how clothing companies are leveraging isotopic testing to ensure their supply chains are free from human rights and environmental abuses. Brands like Shein and Patagonia use this forensic method to verify the atomic composition of materials, identifying their origins and ensuring compliance with regulations such as the Uyghur Forced Labor Prevention Act.

Tokar explains, “Since 2021, we've had this law in the US called the Uyghur Forced Labor Prevention Act... we've been told that Shein, which started doing this testing in 2022, initially found that 2% of the tests were positive for Xinjiang cotton... they've had that number fall to 1.7%” (11:26). U.S. Customs officials are also adopting isotopic testing, increasing the pressure on companies to maintain transparent and ethical supply chains (12:10).

Conclusion

The episode provides a thorough examination of how President-elect Trump’s ambitious agenda might navigate the complexities of a narrowly controlled and ideologically divided Congress. With key priorities such as regulatory changes, tax reform, and border security at stake, the GOP faces significant challenges in maintaining unity and securing the necessary support to enact legislative goals. Additionally, the discussions on corporate strategies and supply chain integrity underscore the broader economic and ethical considerations influencing today’s business landscape.

Produced by Kate Bullivant and Daniel Bach, with supervising producer Christina Rocca.

Timestamps:

• 00:30 Introduction to Trump’s FTC plans and congressional dynamics.
• 01:10 Andrew Ferguson’s appointment and stance on tech companies.
• 01:50 Trump’s expedited approval promise.
• 02:10 Jason Miller on regulation cutting.
• 02:30 Legal challenges to Trump’s approval strategies.
• 03:00 Bipartisan support for permitting reforms.
• 04:50 Infowars sale rejection.
• 05:20 Upcoming inflation report and earnings.
• 06:05 Siobhan Hughes on Republican House majority.
• 06:31 Tight margins in the House.
• 07:17 Ideological divisions within the GOP.
• 08:00 Tax reform complexities.
• 08:39 Deficit concerns related to tax cuts.
• 09:23 Unconventional bipartisan alliances.
• 09:27 Border security as a top priority.
• 10:18 Trump’s fast track legislative approach.
• 11:26 Isotopic testing in the clothing industry.
• 12:10 U.S. Customs adopting isotopic testing.

Note: All timestamps correspond to the original podcast transcript provided.