Senate Funds Most of DHS, Including Pay for TSA

Summary

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WSJ What’s News – March 27, 2026

Episode Theme:
This episode centers on major breaking stories in politics, economics, and markets, focusing on the Senate's resolution to fund most of the Department of Homeland Security (DHS), ongoing US-Iran tensions and possible troop deployments, the struggles and potential mergers in the global spirits industry, legal developments involving the AI company Anthropic, policy changes affecting tech workers and new US currency, as well as the highly anticipated IPO of SpaceX and Netflix's price hikes.

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Key Discussion Points & Insights

Senate Funds Most of DHS, Airport Disruptions to End

• Overview:
  The Senate passed legislation to fund most of the DHS, addressing airport worker pay and averting further disruptions.
• Details:
  • The deal passed shortly after 2 AM (01:16), likely to be picked up by the House and signed by President Trump soon.
  • Key agencies like TSA are funded, but ICE and Border Patrol remain unfunded, awaiting separate reconciliation-based funding (01:56).
  • Democratic demands for reforms—body cameras for officers, identification, and requiring agents to obtain judicial warrants—were not met (01:35).
  • Quote:
    "Democrats did not win any changes to the ways the Trump administration practices immigration enforcement. And as Senate Majority Leader John Thune told us, that ship has sailed. And according to him, Democrats can kiss that opportunity goodbye."
    – Siobhan Hughes, [01:56]
  • Progressives in Congress see the withholding of ICE and Border Patrol funds as a partial win, reflecting their limited leverage (02:38).
  • No immediate prospects for additional reforms as Congress heads into a two-week recess (03:18).
  • Quote:
    “For now, that truly appears to be dead in the water.”
    – Siobhan Hughes, [03:18]

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Pentagon Considers Sending 10,000 Troops to Middle East

• Overview:
  The US is weighing escalation in the Iran conflict by potentially deploying 10,000 more ground troops.
• Details:
  • Troop locations unclear; possible proximity to strategic Iranian sites like Kharg Island (03:40).
  • Iran’s UN Ambassador Ali Bahraini warns:
    "We are ready for any scenario, including any kind of ground operation. I think that is a place that we will be able to defeat them.”
    – Ali Bahraini, [04:01]
  • US Central Command and the White House issue noncommittal statements; all military options remain open (04:27).
• CPAC Attendee Sentiment:
  • Conservative Political Action Conference (CPAC) reflects mixed conservative grassroots opinions:
    • Strong initial support for the administration, but mounting concern, especially among the young, over the war's duration and focus away from domestic issues like the economy (04:43–05:33).
    • Quote:
      "When I heard they were going into that area, I thought it might be a long, drawn-out thing. I'm really hoping that it cleans up fast."
      – CPAC Attendee, [05:33]
    • Some fear a lengthy engagement would mark a “full betrayal,” referencing contrasting brief missions, such as in Venezuela (05:45).
• Political Impact:
  • Trump’s absence dampens CPAC excitement but his influence dominates the agenda; Republican hopefuls vie for his endorsement (06:12).
  • Example: Michael Whatley, Senate candidate in North Carolina, pledges full alignment with Trump (06:59).

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Anthropic AI Wins Court Injunction Against Trump Administration

• Overview:
  Anthropic, an AI firm, secures an injunction from a judge after being labeled a supply chain risk and seeing its government contracts banned (07:48).
• Details:
  • Judge Rita Lynn describes the administration’s move as “classic illegal First Amendment retaliation” (07:51).
  • The administration intends to appeal.
  • Quote:
    "[The measures] appear designed to punish Anthropic in its standoff over military use of AI, describing them as classic illegal First Amendment retaliation."
    – Judge Rita Lynn (reported by Luke Vargas), [07:51]

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Changes for Tech Workers and US Currency

• Skilled Worker Visas:
  • The Labor Department may require higher minimum wages—21% to 33% hikes—for H1B visa holders (08:22).
  • Backers argue current programs let US firms pay foreign workers less than American employees (08:22).
• New US Currency:
  • For the nation's 250th anniversary, President Trump’s signature will appear on new bills alongside Treasury Secretary Scott Besant—replacing the traditional inclusion of the treasurer's signature (08:55).

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SpaceX’s Highly Anticipated IPO

• Details:
  • Filing for IPO expected; target date for a market debut is mid-June (09:15).
  • Potential valuation: $40-$80 billion.
  • Elon Musk to prioritize share allocation to individual investors (aiming for over 33%, compared to the typical 10%), and offer special access to investors in Musk companies (09:15–09:47).

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Spirits Industry Faces Headwinds, Possible Major Merger

• Overview:
  • Pernod Ricard (Absolut) and Brown Forman (Jack Daniel’s) are discussing a merger amid industry-wide challenges (09:52).
  • Factors: shrinking demand, consumer belt-tightening, and trade barriers (10:05).
  • Tariffs, particularly US-Canada tensions, have hindered exports.
  • Quote:
    "This industry is under siege and they have to find ways to right the ship... One way... is to merge in hopes of generating a lot of cost savings, because right now demand is falling for all sorts of reasons."
    – Ben Dummit, [10:05]
  • Merger could be worth upwards of $30 billion, with significant family ownership likely to remain.

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Netflix Price Hike

• Overview:
  • Standard plans up $1/month; premium up $2.
  • Netflix attributes continued growth to successful prior price increases; subscriber base now over 325 million (10:48).
  • Notable Moment:
    "It's about to cost you a little bit more to Netflix and chill… man, that joke is old."
    – Luke Vargas, [10:48]

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Memorable Quotes & Moments

• On the DHS Funding Compromise:
  "Democrats did not win any changes... that ship has sailed... Democrats can kiss that opportunity goodbye." – Siobhan Hughes, [01:56]
• Progressive Takeaway:
  "For a party that has really been on its back heel, this counts as an accomplishment of sorts." – Siobhan Hughes, [02:38]
• Iran’s Preparedness:
  "We are ready for any scenario, including any kind of ground operation. I think that is a place that we will be able to defeat them.” – Ali Bahraini, [04:01]
• Grassroots War Fatigue at CPAC:
  “I'm really hoping that it cleans up fast.” – CPAC Attendee, [05:33]
• Anthropic Injunction Ruling:
  “[The administration’s measures are] classic illegal First Amendment retaliation.” – Rita Lynn (via Luke Vargas), [07:51]
• Spirits Merger Outlook:
  "This industry is under siege... they have to find ways to right the ship." – Ben Dummit, [10:05]
• On Netflix Price Hike:
  "Man, that joke is old." – Luke Vargas, [10:48]

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Important Timestamps

• [00:17] Senate funds most of DHS
• [01:19] Details on the Senate funding deal (Siobhan Hughes)
• [01:56] Exclusions and Democrats’ failed reform efforts
• [02:38] Progressive Democrats’ reaction
• [03:36] Pentagon planning additional troop deployments to Middle East
• [04:01] Iran’s ambassador response
• [04:43] CPAC coverage and conservative grassroots sentiment
• [06:12] CPAC’s role in Republican midterm messaging
• [07:48] Anthropic wins court injunction
• [08:22] Changes to skilled worker visa wages
• [08:55] New currency design details
• [09:15] SpaceX IPO plans
• [09:52] Possible Pernod Ricard–Brown Forman merger
• [10:48] Netflix raises subscription prices

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Summary in Brief

This WSJ What’s News episode provides an incisive look at how high-stakes political negotiations in Washington affect both the economy and American life—from saving airport jobs and shaping immigration enforcement to influencing global security via troop movements in the Middle East. It dives into shifting trends in the spirits industry, ongoing legal battles over government tech procurement, changes in tech and finance policy, and the moves of cultural touchstones like Netflix and SpaceX. Throughout, the show balances political developments, business analysis, and the shifting mood of the American public heading into a heated election season.

Transcript

[Mike McNerney]

Mike I'm Mike McNerney, Equity Investment Strategist. Markets move fast. My mission is to provide market insights to our clients that help turn uncertainty into opportunity. JANICE henderson, Investing in a brighter future. Together,

[Luke Vargas]

The Senate funds most of dhs, putting an end in sight to the chaos at airports.

Plus, the Pentagon weighs sending 10,000 ground troops to the Middle East. And struggling spirits makers gamble they could be stronger.

[Ben Dummit]

This industry is under siege and they have to find ways to right the ship. One way of doing that is to merge in hopes of generating a lot of cost savings because right now demand is falling for all sorts of reasons.

[Luke Vargas]

It's Friday, March 27th.

I'm Luke Vargas for the Wall Street Journal, and here is the AM Edition of what's news, the top headlines and business stories moving your world Today,

Senate Republicans and Democrats have agreed to fund most of the Department of Homeland Security,

a step that could quickly tee up an end to the CRIS crisis at airports. On the very day that airport security workers had been set to miss another paycheck, congressional reporter Siobhan Hughes is working the late shift on Capitol Hill. Siobhan, sounds like we've got a deal

here coming in just after 2am we have a deal.

[Siobhan Hughes]

And in fact, the Senate has just passed legislation to fund the Department of Homeland Security, or at least most of it, which is on course to end this standoff. The expectation is the House picks this up in the next few hours before President Trump signs the measure into law.

[Luke Vargas]

Shaman I know Democrats had wanted to use this funding holdup to secure reforms to immigration operations, making sure that officers wore body cameras as well as identification that they took off their masks. They also wanted agents to need judicial warrants before entering homes. Did they get any of that? And I know you said there that elements of DHS aren't being funded here, which ones?

[Siobhan Hughes]

So what is left out is funding for ice, Immigration and Customs Enforcement and then Border Patrol, a separate function also within the Department of Homeland Security. The Republicans said they are going to try to fund those two units separately through a special procedural tactic called budget reconciliation, where they only need a simple majority of the Senate to clear that. And as for reforms, Democrats did not win any changes to the ways the Trump administration practices immigration enforcement. And as Senate Majority Leader John Thune told us, that ship has sailed. And according to him, Democrats can kiss that opportunity goodbye.

[Luke Vargas]

How is that going over with Democratic leaders and the rank and file?

[Siobhan Hughes]

Democrats, particularly the progressive wing, I think, would see this as a win because Democrats are in the minority in Congress. They have no power to do anything. And basically what they have succeeded in doing is taking a chunk out of the immigration enforcement budget. And for a party that has really been on its back heel, this counts as an accomplishment of sorts. Chuck Schumer this and a Democratic leader in the meantime said that he was proud that his caucus had stuck together and resisted funding for immigration agenc without significant reforms. And for his part, he said he thought Democrats would have some opportunities for such victories ahead.

[Luke Vargas]

Like what? Siobhan, is that likely?

[Siobhan Hughes]

For now, that truly appears to be dead in the water. It does not appear that Democrats have any avenues to win reforms. And to really put a pin in that, Congress is about to go on recess for two weeks.

[Luke Vargas]

Siobhan, thanks so much for the update. Get some rest.

[Siobhan Hughes]

Thank you.

[Luke Vargas]

The Pentagon is considering sending up to 10,000 more ground troops to the Middle

east as President Trump weighs his next steps in the Iran war. We report that it's unclear exactly where the troops would go, but that they'd likely be within striking distance of Iran and Kharg island, its crucial oil export hub. Iran's UN Ambassador in Geneva, Ali Bahraini, said his country was prepared for any next moves from the US we are

[Ali Bahraini]

ready for any scenario, including any kind of ground operation. I think that is a place that we will be able to defeat them. And I think that would be one of the big mistakes if they take that decision.

[Luke Vargas]

A spokesman for U.S. central Command declined to comment, while a White House press secretary said that troop deployment announcements would come from the Pentagon and that President Trump always had all military options at his disposal.

Meanwhile, Journal Politics reporter Sabrina Rodriguez says

some misgivings about the war in Iran were on display yesterday as the Conservative Political Action Conference, or cpac, kicked off its annual gathering in Texas.

[Sabrina Rodriguez]

Overwhelmingly in the speeches, there's a focus on really hyping up the administration.

[CPAC Speaker]

We gotta make Iran free again and we're gonna make sure that America stands strong by their side.

[Sabrina Rodriguez]

But in conversations with attendees, so especially younger attendees, something that I've consistently heard is frustrations and anxiety over the state of the economy. The fact that the administration is focusing so much on foreign affairs, particularly when it comes to the war in Iran, some are supportive of the president's initial actions, but even those are worried about this dragging on and really want to see this resolved quickly.

[CPAC Attendee]

When I heard they were going into that area, I thought it might be a long, drawn out thing. I'm really hoping that it cleans up fast.

Now. You know, granted, Venezuela, that was a clean operation, in and out, no casualties but, you know, I know there's like rumors or whatnot that we could be sending troops over to Iran and that to me, would that be full betrayal.

[Luke Vargas]

Sabrina says that President Trump's decision not to attend CPAC for the first time in a decade has lowered the excitement level at the gathering, but that among Republicans vying for higher office in November's midterms in his presence was still felt.

[Sabrina Rodriguez]

Beyond CPAC being one of the most prominent gatherings for conservative activists, it's an opportunity for Republican elected officials, Republican candidates to get to test out material, get to, you know, hone in on what are some of the themes that we're going to be seeing in the upcoming elections. And even with Trump not being present, so much of the message coming from speakers is really praise on Trump, focus on Trump alignment with Trump. One speaker, for example, was Michael Whatley, who was the Republican candidate running for the competitive U.S. senate seat in North Carolina. And he said he's going to be aligning himself with President Trump and that that's hugely important to him and his candidacy.

[CPAC Attendee]

You know, and when you look at elections, good policy is good politics without doubt. And President Trump's agenda is really true, the agenda that's driving us right now.

[Luke Vargas]

CPAC runs through Saturday.

Coming up, Anthropic wins an injunction in its court battle with the Trump administration.

And we'll explore the potential drinks industry tie up between the makers of Absolut and Jack Daniels after the break.

[Morningstar Announcer]

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[Luke Vargas]

Anthropic has scored an early victory in

its legal fight with the Pentagon after a federal judge issued an injunction against the Trump administration's designation of the AI company as a supply chain risk and its ban on government use of its AI models. Judge Rita Lynn of the Northern District of California said the measures appear designed to punish Anthropic in its stando over military use of AI, describing them as classic illegal First Amendment retaliation. The government has indicated it would appeal an injunction.

Meanwhile, the Trump administration is planning to

require higher wages for foreign workers coming to the US on skilled worker visas that are popular with big tech companies. Under a proposal from the Labor Department, pay floors for foreign workers in the H1B program would rise between 21 and 33%, depending on their experience. Critics have argued that employers have a used the program and other visa categories by hiring foreign workers that they can pay less than US Employees in a

first for a sitting president. The Treasury Department says that President Trump's signature will appear on new U.S. paper

currency honoring the country's 250th anniversary later this year, with it sitting beside the signature of Treasury Secretary Scott Besant. Typically, it's the treasurer's signature that appears on bills alongside the Treasury Secretary

Elon Musk's SpaceX is expected to file paperwork

with regulators for its highly anticipated IPO in the coming days, targeting a mid June market debut. We report that the rocket and satellite company is expected to raise between 40 and 80 billion dollars, and that Musk

aims to deliver a third or more

of shares sold in the offering to individual investors, well above the typical 10%. SpaceX is also planning to give preferential treatment to investors in Musk's other companies, including Tesla, and to invite would be investors to visit manufacturing facilities and possibly witness rocket launches.

As the drinks industry grapples with slowing sales, Paris based drinks giant Pernod Ricard

and Louisville based Jack Daniels maker Brown Forman are in talks to merge. The Journal's Ben Dummit says that the families behind the two companies would likely each retain significant stakes in any deal, which could be just weeks away.

[Ben Dummit]

Together, the combined entity could be worth upwards of? 30 billion. That ultimately depends on how the market reacts to the news that they are in talks. Last night we saw Pernod's stock fall in the US Whereas we saw Brown Forman stock rise. But it just underscores that this industry is under siege and they have to find ways to right the ship. One way of doing that is to merge in hopes of generating a lot of cost savings, because right now demand is falling for all sorts of reasons. People are tightening their purse strings. They don't want to spend as much money on premium brands. The tariffs have played a big role. Canada, for example, essentially took all of US Liquor off its shelves because of the Trump tariffs. So it's a tough time for the industry.

[Luke Vargas]

And finally, it's about to cost you

a little bit more to Netflix and chill man, that joke is old. Netflix is raising prices across all three of its tiers, with standard plans increasing by a dollar and the monthly cost of its premium package jumping by two. Netflix in January said it surpassed 325 million paid members and attributed strong Q4 results, among other things, to increases in prices. And that's it for what's news for this Friday morning. Additional sound in this episode was from Reuters. Today's show was produced by Hattie Moyer. Our supervising producer was Daniel Bock. And I'm Luke Vargas for the Wall Street Journal. We will be back tonight with a new show.

Otherwise, have a great weekend and thanks for listening.

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