Special Update – What’s Going on in Washington?

As Colorado lawmakers continue their work in the session—with just 99 days remaining starting tomorrow—and we in the lobby eagerly anticipate key bills and upcoming legislative hearings, we can’t lose sight of the significant federal news unfolding.

With the current administration in Washington making waves, the news cycle has become non-stop. Major changes, fast-moving developments, and a slew of executive actions are dominating the headlines. Here are a few crucial updates you should know about:

1. Trump will sign his first piece of legislation on Wednesday. President Donald Trump is set to sign the first bill of his second term, the Laken Riley Act, on Wednesday afternoon at the White House, according to two sources who spoke to NPR on condition of anonymity to reveal details of the upcoming event. Some House Republicans, who are currently at Trump’s Miami-area resort for a legislative retreat, are expected to attend the signing after wrapping up their meetings Wednesday morning and flying back to Washington. The bill, which mandates the detention of undocumented immigrants charged with certain minor offenses, passed both the House and Senate with bipartisan backing
2. Congressional Committee chair launches “sanctuary cities” investigation. House Oversight and Government Reform Committee Chair James Comer is initiating an investigation into sanctuary cities as the new Trump administration ramps up executive actions aimed at cracking down on illegal immigration. Comer (R-Ky.) has sent requests for additional information to the Democratic mayors of Boston, Chicago, Denver, and New York. He has also invited these officials to testify before his committee on February 11, though it remains uncertain whether they will agree to appear. “In addition to the efforts of the Trump Administration to ensure federal immigration enforcement can proceed unimpeded, Congress must determine whether further legislation is necessary to enhance border security and public safety,” Comer said in a statement. “It is imperative that federal immigration law is enforced and that criminal aliens are swiftly removed from our communities.”
3. White House pauses all federal grants. The White House has ordered a pause on all federal grants and loans, causing confusion across Washington. An internal memo from the Office of Management and Budget, issued Monday, directs federal agencies to stop disbursing financial assistance while conducting a review to ensure compliance with President Trump’s executive orders, including those limiting diversity initiatives and clean energy spending. The pause doesn’t affect Social Security, Medicare, or direct assistance to individuals, but it includes aid for foreign organizations, DEI programs, and green energy projects. The move could delay tens of billions in payments, impacting universities, nonprofits, and other recipients reliant on federal funds. The memo goes into effect Tuesday, and agencies must report the suspended projects by February 10. Experts worry the delay could create financial strain and signal an attempt to consolidate executive spending power, bypassing Congress. Some question the legality of the order, though the administration has the authority to temporarily freeze funds. You can read the full memo here.
4. National Science Foundation freezes grant review in response to Trump executive orders. The National Science Foundation (NSF) canceled all of its grant review panels this week as it works to align its grantmaking process with new executive orders from the Trump administration. The NSF, which funds a broad range of scientific research through grants to universities and research institutions, typically convenes panels of experts to evaluate proposals and determine which will receive federal funding. The agency’s budget is approximately $9 billion. This week, more than 60 review meetings were scheduled, but all were abruptly canceled on Monday. The decision left panelists confused about the extent of the suspension. In a statement to NPR, an NSF spokesperson clarified that all review panels would be rescheduled. “This will allow the agency to make the best use of everyone’s time and resources as we continue to develop guidance to ensure compliance with the recent executive orders,” the spokesperson said.
5. Trump addresses House Republicans at Florida retreat. President Trump addressed House Republicans at their annual policy retreat in Doral, Florida, where he floated the idea of running for a third term, urged party unity, and outlined his legislative priorities. Trump’s speech highlighted his focus on border security, taxes, and a strong stance against foreign competition, all while trying to unite Republicans around his legislative goals. Here are five key takeaways from his speech:

• Third-Term Mention: Trump joked about seeking a third term, saying he wasn’t sure if he could run again, and playfully asked Speaker Mike Johnson if he was allowed to. Though seen as a joke, it follows similar comments Trump has made previously. Last week, Rep. Andy Ogles proposed a constitutional amendment to allow Trump a third term, but it has little chance of passing.
• Unity on Legislative Agenda: Trump emphasized the need for House Republicans to stay united, stressing that their narrow majority requires near unanimous support to pass legislation. He called for cooperation but showed flexibility on strategy, suggesting no preference between one or two bills for his priorities.
• Border and Tax Priorities: Trump reiterated key campaign promises, urging Congress to fund a major boost in border security, including ICE personnel, and to complete the border wall. He also called for the permanent extension of his 2017 tax cuts, and for no taxes on tips, Social Security, or overtime pay.
• Birthright Citizenship: Trump doubled down on his controversial stance against birthright citizenship, arguing that the 14th Amendment was meant for the children of slaves, not immigrants. He supports a bill that would limit automatic citizenship to those with at least one U.S. citizen or permanent resident parent.
• AI and China: Trump expressed concerns about DeepSeek, a Chinese AI startup, calling it a “wake-up call” but also potentially a “positive” for U.S. industries. He also discussed his mixed feelings about TikTok and criticized Biden’s CHIPS Act, suggesting the funds could have been better spent offering incentives rather than direct subsidies.

1. DeepSeek sends a shockwave through markets. In a flash, excitement over artificial intelligence (AI) has shifted to panic. Since early trading on January 27th, Nvidia, the leading AI chipmaker, has seen its market value drop by 17%. Meanwhile, shares of Alphabet, Amazon, and Microsoft—America’s cloud computing giants—have fallen by 3%, 1%, and 3%, respectively. In total, U.S. tech companies have lost around $1 trillion in value. The immediate trigger for this investor anxiety is DeepSeek, a little-known Chinese AI startup that stunned analysts last week with its new large language model, R1. The company’s chatbot quickly became the most downloaded app on iPhones over the weekend, drawing in consumers with its impressive capabilities. Using innovative techniques, DeepSeek has managed to train AI models that rival the most advanced Western models, but at a fraction of the computational power—and cost.

Plenty more to come out of Washington in the coming weeks. 

Best,

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