WSJ What’s News (PM Edition) – January 26, 2026

Episode: White House May Reduce Federal Immigration Agents in Minnesota

Episode Overview

This episode focuses on major national developments, particularly:

• The White House’s consideration to reduce the number of federal immigration agents in Minnesota following two fatal shootings involving federal officers.
• Key updates on health insurance premium hikes amid changes to Obamacare subsidies.
• New 2025 tax deduction rules.
• Brief updates on Middle East developments, market movements, and AI investment news.

The tone is brisk, factual, and balances on-the-ground reporting with expert analysis from Wall Street Journal correspondents.

Main Story: Minneapolis Under Federal Scrutiny

Fatal Shootings Spark Outrage and Legal Challenges

• Recent Events:
  Two U.S. citizens, including Alex Preddy, have been killed by federal immigration authorities in Minneapolis this month.
• Community Response:
  • Joe Barrett reports from Minneapolis:

    “There were 300 people screaming their heads off and doing protesty things, not always peacefully. And then at the end of the night, there was a vigil… Three different vibes in three different places. There’s a lot of anger, there's a lot of sadness…” (01:25)

• Legal Developments:
  • A federal judge is hearing a Minnesota lawsuit to stop what the state alleges is an “unlawful federal immigration operation.”

    “She really wants to get this done and that if she had a front burner in front of her front burner, that’s what this would be on.” – Joe Barrett (02:03)

    • The judge compared the surge of agents in Minnesota—up to 3,000–4,000—to much smaller deployments elsewhere.
• Federal Reaction:
  • The government’s lawyer defends the federal right to deploy immigration agents.

    “…it’s our purview to mobilize our agents the way we see fit.” – Government lawyer, paraphrased by Joe Barrett (02:24)

White House and Political Response

• President Trump’s Moves:
  • President Trump claims a “very good call” with Minnesota Governor Tim Walz and is sending Border CZ Tom Homan to Minneapolis. (02:41)
• Administration’s Messaging:
  • Press Secretary Caroline Levitt emphasizes concern for all lives lost and ongoing investigations.

    “Nobody in the White House, including President Trump, wants to see people getting hurt or killed in America’s streets.” – Caroline Levitt (03:03)

  • Levitt states a reduction of agents may come if Minnesota increases cooperation with federal immigration enforcement:

    “…if local officials there increase cooperation … [we may] draw down the federal immigration presence in Minneapolis.” (03:31–03:49)

• De-escalation or Not?
  • Michelle Hackman analyzes the administration’s position:

    “It looks to me as though the administration is looking for a way to deescalate the situation, but not look like it’s a total retreat with your tail between your legs.” – Michelle Hackman (04:19)

  • The White House’s conditions are described as “a little wishy-washy,” noting Minnesota already complies with some demands.

Political Calculations Shift

• Changing Tone:
  • Initially, the White House viewed enforcement as “righteous,” but polling data shows unpopularity, even among Democrats:

    “…administration officials have been passing around polling showing that their operation is really unpopular with voters and just with Democrats. And so all, all of that was freaking people out and having them look for an off ramp.” – Unnamed WSJ administration insider (05:33)

Important Timestamps:

• Reporting from Minneapolis: 01:25–01:53
• Courtroom and policy debate: 01:53–03:03
• White House and administrative response: 03:03–05:51

Health Insurance Premiums Soar Post-Shutdown

Loss of Subsidies Drives Up Obamacare Costs

• Premium Spikes:
  • Many Americans face steep health insurance premium hikes after subsidies lapsed at the end of the recent government shutdown.
• On-the-Ground Impact:
  • Broker Rebecca Yates relates client distress:

    “I've been yelled at. I've had a lot of people crying… had a heart attack in the last year that have just said, ‘I can't’ because their premium went from $200 to over $2,200.” (08:12)

  • Rachel Ensign quantifies the problem:

    “Folks… are seeing their premiums go up 114% on average. They're facing increases of hundreds or thousands of dollars a month.” – Rachel Ensign (08:48)

• Choices & Concerns:
  • Healthier people are opting out and risking going uninsured.

    “…people who are healthier are just dropping insurance and hoping for the best. …It's a pretty precarious existence.” (09:17)

  • Affordability is a dominant concern fueling negative sentiment about the economy.

Policy Outlook

• Legislative Prospects:
  • The House passed legislation to restore subsidies; the Senate’s path is uncertain.

    “My colleagues in Washington tell me it seems like the odds are pretty long, especially because President Trump has come out and offered this other plan this month which does not appear to include extending the subsidies.” – Rachel Ensign (10:19)

Important Timestamps:

• Premium spikes personal stories: 08:12–09:10
• Policy solutions discussed: 10:15–10:43

Other Headlines & Market News

Middle East Developments

• Israel has recovered the last October 7, 2023 hostage’s body, leading to reopening Rafah crossing—a key step in the U.S. peace plan (05:52–07:08).
• USS Abraham Lincoln carrier group arrives in the region, boosting U.S. military capability.

Market Recap & Notable Quotes

• Stock rally:
  • Dow closes up 0.6%.
  • Gold sets a record above $5,000/oz; silver spikes 14%—biggest one-day jump in 40 years.
• AI Investment:
  • Nvidia invests $2 billion more in CoreWeave, building out AI “factories.” (11:50–12:07)

New Tax Deductions

• Significant new rules:
  • State/local deduction cap rises from $10,000 to $40,000—big for residents of high-tax states.

    “That $30,000 additional deduction … is going to be about a 24% tax rate, seven grand or something, right? So this is potentially significant additional dollars.” – Richard Rubin (12:07)

Important Timestamps:

• Markets and new tax info: 10:52–12:38

Notable Quotes & Memorable Moments

• “Three different vibes in three different places. There’s a lot of anger, there’s a lot of sadness, and people are out on the streets expressing that today.” – Joe Barrett (01:25)
• “If she had a front burner in front of her front burner, that’s what this would be on.” – Joe Barrett (02:03)
• “The administration is looking for a way to deescalate the situation, but not look like it’s a total retreat with your tail between your legs.” – Michelle Hackman (04:19)
• “Folks who feel like they really need insurance are finding a way to make it work because they have health issues. … But people who are healthier are just dropping insurance and hoping for the best.” – Rachel Ensign (09:17)
• “That $30,000 additional deduction … is going to be about a 24% tax rate, seven grand or something, right?” – Richard Rubin (12:07)

Summary Snapshot

This episode underscores how federal immigration enforcement can rapidly shift from “righteous action” to political liability, with the White House seeking a de-escalatory “off-ramp” after public backlash in Minnesota. The show also highlights surging health insurance costs due to lapsed federal subsidies, previews new opportunities for tax deductions, and offers a brisk update on major markets, AI investments, and Middle East diplomacy.

Listeners are left with a sense of fast-moving political calculations, economic pressures, and a reminder of the very real social consequences behind the headlines.