WSJ What’s News (PM Edition)
Episode: Trump Administration Ends Its Immigration Surge in Minnesota
Date: February 12, 2026
Host: Alex Osola
Episode Overview
This episode of the WSJ’s "What’s News" focuses on the Trump administration’s decision to end its immigration crackdown in Minnesota—a move following political backlash and local unrest. The show explores the ramifications of the policy reversal, local and national reactions, and the broader environment of economic and political stress in the US. Additional segments address rising financial pressure on middle-income Americans, turmoil in Congress over Homeland Security funding, major moves in US financial markets, and two WSJ exclusives: US efforts to aid Iranian protesters and a US naval incident in the Caribbean.
Key Discussion Points and Insights
1. End of the Minnesota Immigration Surge
News Summary
- The Trump administration is ceasing its heightened immigration enforcement operation in Minnesota, deploying border officers back to their home locations or to other needed regions. (01:15)
Key Speaker: Tom Homan (US Border Czar)
- “Operation Metro Surge is ending and in the next week we're going to deploy the officers here on detail back to the home stations or other areas of the country are needed.” (01:15)
Background and Goals
- Michelle Hackman (WSJ Immigration Reporter) contextualizes the administration’s goals, indicating a public narrative of "mission accomplished," but interprets the withdrawal as a tactical de-escalation after a tumultuous period.
- "They did make a lot of arrests. It remains to be seen how many of those people will actually be deported." (01:35)
Local Impact and Trauma
- Following the shooting of Alex Preddy (a US citizen) by federal agents, public anger swelled across party lines.
- Governor Tim Walz highlighted the lingering harm:
"They left us with deep damage, generational trauma. They left us with economic ruin in some cases. They left us with many unanswered questions." (02:06, via audio clip)
Political Response
- According to Michelle Hackman, bipartisan criticism and unrest, especially after the aforementioned shooting, forced the administration's reversal:
“It wasn't just Democrats, it was coming from Republicans saying this looked too chaotic. So they reversed course. They put in Tom Homan. They sort of cut off the chain of command that had already been there.” (02:22)
Minnesota Democrats’ Reaction
- “Democrats in Minnesota are saying, we stood up to ICE and we won. We drove them out of our state.” (02:58)
Economic Fallout
- Local economies suffered as immigrants and even citizens with foreign backgrounds stayed home out of fear, resulting in less commerce and a slower recovery.
"You saw immigrants, even citizens of foreign descent staying home, not working because they were afraid of ICE... That will take time to recover." (03:14)
2. Capitol Hill Showdown over Homeland Security Funding
Senate Developments
- Senate Democrats blocked a funding bill for the Department of Homeland Security, citing stalled negotiations over immigration enforcement restrictions. A government shutdown of the department looms as the existing short-term measure expires soon (03:37–04:02).
Congressional Mood
- Lindsay Wise (WSJ Congressional Reporter) describes a relatively low sense of urgency within Congress, as only Homeland Security is affected and most federal workers will still be paid for now:
"I think that things will start to heat up here a little bit more when people start to miss paychecks." (04:55)
3. Justice Department Shakeup
Gail Slater Departure
- DOJ’s chief antitrust official, Gail Slater, steps down after internal clashes with leadership over corporate merger oversight. Her exit comes amid significant ongoing antitrust cases involving Google, Live Nation, Apple, and Visa (04:55).
4. Rising Financial Stress Among Middle America
Personal Finance Trends
- Imani Moiz (WSJ Personal Finance Reporter) reports increasing financial stress among middle-income Americans, as more seek credit counseling—often a last stop before bankruptcy:
"The average client now makes $70,000. So that's still considered middle class middle income ... bad outcomes are coming for higher and higher earners." (05:41)
Underlying Factors
- Rising inflation and stagnant wages drive borrowing for essentials, not luxuries:
"They're seeing debt move from discretionary to survival. So it's not just, 'I'm charging my family vacation to the credit card.' It's 'I'm paying for groceries, I'm paying for gas.'" (06:23)
5. Markets Update
Stocks and Bonds
- Market jitters around artificial intelligence caused the Nasdaq to plunge over 2%, with the Dow falling below 50,000. (07:53)
- As software and finance sectors brace for AI disruption, investors flood the corporate bond market.
- Sam Goldfarb (WSJ Bond Reporter) notes record-tight credit spreads drive strong bond demand:
"The gap between those and the yields on ultra safe US Treasuries ... are the tightest spreads we've seen in almost 30 years." (08:21) "Investors also think that maybe the Fed will keep cutting interest rates and that these yields will go down ... So they want to buy them now while they still can." (08:59)
6. Housing Market Downturn
- Home sales plummeted 8.4% in January—largest drop since February 2022—due to freezing weather and high mortgage rates (09:48).
- Buyers remain cautious, with high home prices and 30-year loan rates above 6%.
- Spring is anticipated as a critical period for any housing recovery.
7. WSJ Exclusives
a. US Smuggles Starlink Into Iran
- The US Trump administration covertly delivered thousands of Starlink satellite terminals to Iran during last month’s internet shutdown, providing protesters with online access, in the face of Tehran’s crackdown and accusations of US interference (10:10).
b. Naval Collision in the Caribbean
- A US warship collided with a Navy supply vessel during refueling in the Caribbean; two minor injuries reported, both ships operational. Cause and location still unclear (10:35).
Notable Quotes & Memorable Moments
- Tom Homan: “Operation Metro Surge is ending and in the next week we're going to deploy the officers here...”
- (01:15)
- Governor Tim Walz: ‘They left us with deep damage, generational trauma. They left us with economic ruin in some cases. They left us with many unanswered questions.’
- (02:06)
- Michelle Hackman: “They did make a lot of arrests. It remains to be seen how many of those people will actually be deported.”
- (01:35)
- Imani Moiz: “They're seeing debt move from discretionary to survival. So it's not just, 'I'm charging my family vacation to the credit card.' It's 'I'm paying for groceries, I'm paying for gas.'”
- (06:23)
- Sam Goldfarb: “The gap between those and the yields on ultra safe US Treasuries ... are the tightest spreads we've seen in almost 30 years.”
- (08:21)
Timestamps of Key Segments
- (00:31) – Headlines overview
- (01:15) – Trump admin ends immigration surge in Minnesota; Tom Homan interview
- (01:35–03:35) – Analysis with Michelle Hackman (administration’s motives, local impact, economic effects)
- (03:37) – Senate struggle over Homeland Security funding with Lindsay Wise
- (04:55) – DOJ antitrust chief Gail Slater departs
- (05:41–06:53) – Rising financial stress with Imani Moiz
- (07:53–09:48) – Stock market, bond demand, and housing market update with Sam Goldfarb
- (10:10) – WSJ exclusive: US smuggles Starlink into Iran
- (10:35) – US Navy collision in Caribbean
Conclusion
This episode weaves together rapid policy reversals, financial instability, and international intrigue, providing listeners with clear, concise reporting and informed analysis from the WSJ newsroom. The tone is brisk, newsy, and direct, offering critical context and a preview of how these headline events could shape the months ahead.