Horizon Cutting-room Links: Wednesday: 12 May 2025
Today is Wednesday, 12 May 2025. Federal agencies in the Washington, DC area are Open. Employees are expected to begin the workday on time. Normal operating procedures are in effect. The weather is partly cloudy, with a low around 42. North wind around 7 mph.
Govcon
"Education Department Work Force Is Almost Halved," New York Times
"The Education Department announced on Tuesday that it was firing more than 1,300 workers, in effect gutting the agency, as the Trump administration continued to make sweeping federal staffing cuts. The move means the department’s work force will be about half the size it was when President Trump took office. The cuts could also portend an effort by the administration to dismantle the department, as the president has said he wants to do, though it cannot be closed without Congress’s approval."
"Entire D.C. government urges GOP to reverse course on 'devastating' $1B cuts," Washington Post
"Norton, the District’s nonvoting representative in the House, had introduced an amendment in the House Rules Committee intended to resolve the problem. But it failed, meaning the House will proceed Tuesday with a vote on a bill that, in an effort to avoid a government shutdown, would also blow a hole in D.C.’s budget."
"Vance pitches separate cuts package as House GOP preps CR vote," Roll Call
"Rep. Warren Davidson, R-Ohio, said some House Republicans are pushing for the rescissions approach that Vance has backed. It will be easier for some House Republicans, himself included, to vote to continue current spending levels if they know a plan to codify DOGE cuts is in the works."
"House Appropriations Chairman Tom Cole, R-Okla., said the rescissions package would likely be separate from fiscal 2026 appropriations, which will also feature spending cuts."
"Trump Says Columbia Student Arrest Is First of Many to Come," Wall Street Journal
"Over the weekend, Khalil, who is Palestinian and Syrian, was able to call Greer from the lobby of his building, which is owned by Columbia University, and his lawyer spoke to one of the agents on the phone. When the agent told her the State Department had revoked his student visa, she said Khalil is a lawful permanent resident. Greer said the agent told her the department 'revoked that too' and hung up when she said she needed to see a warrant."
"Elon Musk and Marco Rubio Share Awkward Social Media Embrace After White House Confrontation," New York Times
"Mr. Rubio wrote on his personal account on X, the social media platform owned by Mr. Musk, that 83 percent of U.S.A.I.D.’s programs were being cut. 'The 5200 contracts that are now cancelled spent tens of billions of dollars in ways that did not serve, (and in some cases even harmed), the core national interests of the United States,' he added.
"Mr. Musk replied: 'Tough, but necessary. Good working with you.'"
"Wall Street Fears Trump Will Wreck the Soft Landing," the Journal
"There’s almost a sense that if something goes wrong in the economy, then that’s fine. That’s making people quite nervous because if you get to the point where you are pushing the economy into a recession, there is no guarantee that that’s just going to pass quickly," Dario Perkins, an economist at GlobalData TS Lombard in London, told the Journal.
"Economists at JPMorgan Chase said Monday that the risk of a recession had edged up to 40% from 30% owing to 'extreme U.S. policies.' Goldman Sachs, which has consistently anticipated above-consensus growth in recent years, now says it expects weaker growth than the rest of Wall Street. Its economists raised their 12-month recession odds to 20% from 15%."
"Tanker That Exploded In North Sea Collision One Of 10 In U.S. Fuel Delivery Program," The War Zone
"Stena Immaculate was built in China and named in 2017. In May 2023, it became one of three ships managed by the Florida-based Crowley company to enroll in the U.S. Department of Transportation (DOT) Maritime Administration’s (MARAD) Tanker Security Program (TSP). The program was created to augment the U.S. Defense Department’s (DoD) logistics capabilities with U.S.-based product tankers.
"The loss of 10% of the TSP fleet comes amid larger concerns about the U.S. ability to supply its forces around the globe by sea. U.S.-flagged tankers won’t be enough to meet DoD’s fueling needs in a future war, Rear Adm. Philip Sobeck, head of the MSC, warned last year."
Travel
"The Day Southwest Died," Cranky Flier
"In the past, I haven’t been a big proponent of free checked bags, but as Southwest’s differentiators started to erode, I started to believe in that more. Whether it was something that mattered or not, this was a powerful marketing message that helped maintain the 'we are different' aura. CEO Bob Jordan acknowledged that less than six months ago when he said free bags would stay at the airline’s investor day. But now, it’s gone. That in itself isn’t a problem. The problem is that there is nothing to replace it. With all the differentiators gone and nothing to replace them, what’s left?"
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