Trump reportedly sues US Treasury and IRS for $10bn; US Senate reaches deal to avert partial government shutdown – as it happened

Closing summary

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Our live coverage is ending now. In the meantime, you can find all of our live US politics coverage here. Here is a summary of the key developments from today:

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  Democrats and the White House have reached a deal to avoid a government shutdown, Senate minority leader Chuck Schumer’s office confirmed to the Guardian. The deal will advance a package of spending bills, while separating a Department of Homeland Security spending bill from the package. The agreement will include funding for DHS for two weeks at current levels, while Democrats continue negotiating further guardrails on immigration agents in light of the recent fatal shootings in Minneapolis. However, a government shutdown could still be coming, with Senate majority leader John Thune saying it “remains to be seen” whether the chamber will approve the deal tonight and House speaker Mike Johnson saying the earliest the House could take floor action may be Monday.

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  Donald Trump sued the US Treasury and Internal Revenue Service for $10bn over an unauthorized disclosure of his tax returns during his first term, Bloomberg News reports. Trump famously broke precedent by not releasing his tax returns while running for, and then attaining, the presidency.

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  Trump will announce his choice to replace Jerome Powell as head the Federal Reserve tomorrow, he says. Powell’s term as chair of the reserve ends in May.

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  Amy Klobuchar, the Democratic US senator and one-time presidential candidate, announced she will run for governor of Minnesota, an expected move after the incumbent governor, Tim Walz, dropped out of the race in early January.

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  Matt Mahan, the moderate Democrat and mayor of San Jose, California, announced on Thursday that he would run for governor, joining a sprawling but stagnant field to succeed Gavin Newsom.

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  The Justice Department filed charges against the man who allegedly tried to spray Democrat representative Ilhan Omar with a “mixture of water and apple cider vinegar” from a syringe during a town hall in Minneapolis on Tuesday.

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  Trump’s “border czar” Tom Homan held a news conference in Minneapolis today, where he said ‘no agency is perfect’ but did not mention the fatal shootings of US citizens by immigration agents there this month.

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  Minneapolis mayor Jacob Frey addressed the US Conference of Mayors in Washington, where he said “we won’t be intimidated”. He said the leaders of cities across the country are “on the frontlines of a very important battle”.

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  The top Democrats on Senate and House national intelligence committees questioned why Tulsi Gabbard, the Director of National Intelligence, appeared at an FBI search of a Georgia election office this week. In a letter to Gabbard, senator Mark Warner and congressman Jim Hines wrote, “The Intelligence Community should be focused on foreign threats”.

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  Massachusetts governor Maura Healey announced that she plans to file legislation that would bar federal immigration officers from schools, courthouses, hospitals and churches and make it illegal for another state to deploy its National Guard in the state. Meanwhile, Josh Shapiro said Pennsylvania is preparing to respond if federal agents begin an immigration operation there as they have in Minnesota and other states.

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  Trump signed an executive order to create a “White House Great American Recovery Initiative” focused on addiction treatment. At an Oval Office sigining ceremony, the president appeared alongside health secretary Robert F Kennedy Jr and Kathryn Burgum, who is married to interior secretary Doug Burgum. The pair will be co-chairing the initiative.

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  The United States Treasury will allow US entities to engage in Venzuela’s oil industry under a new license announced today. The news comes as Venezuela’s interim president Delcy Rodríguez signed a law today to open the country’s oil sector to privatization. Also today, the Department of Transportation rescinded a 2019 order that prohibited all US airlines from flying to Venezuela.

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Democrats and the White House have reached a deal to avoid a government shutdown, Senate minority leader Chuck Schumer’s office has confirmed to the Guardian.

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The deal will advance a package of spending bills, while separating a Department of Homeland Security spending bill from the package. The agreement will include funding for DHS for two weeks at current levels, while Democrats continue negotiating further guardrails on immigration agents in light of the recent fatal shootings in Minneapolis.

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Donald Trump signed an executive order today to create a “White House Great American Recovery Initiative” focused on addiction treatment.

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At an Oval Office sigining ceremony, the president appeared alongside health secretary Robert F Kennedy Jr and Kathryn Burgum, who is married to interior secretary Doug Burgum. The pair will be co-chairing the initiative.

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Both Kennedy and Burgum have lived experience with addiction.

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Kennedy, who has been open about his past struggle with heroin addiction, emphasized that it’s “not a moral failure, it’s a disease.”

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In her remarks, Kathryn Burgum talked about being reliant on alcohol for 20 years and being in recovery for more than 23. “Addiction is not a moral failure. It is not a character flaw. And it’s not simply a behavioral issue. Addiction is a lifelong, chronic, relapsing medical disease as real as diabetes, cancer, and heart disease. And when we fail to treat it as such, we don’t treat the disease,” she said.

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Governor Gavin Newsom said he had little faith that Donald Trump’s border czar, Tom Homan, would de-escalate the immigration crackdown in Minneapolis, warning darkly: “These guys are not screwing around.”

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Speaking in San Francisco at an event hosted by Bloomberg News, Newsom recalled that the Trump administration closed an investigation into Homan, who was accused of accepting a bag with $50,000 in cash from undercover FBI agents.

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“If Tom Holman – who was accused of a $50,000 bribe where charges disappeared … – is the adult in the room, we are more trouble than any of you think,” Newsom said.

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The governor added: “None of this can be normalized, and none of this, none of these can be considered credible in the context of any of this renewed posture of the administration.”

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The top Democrats on Senate and House national intelligence committees are questioning why Tulsi Gabbard, the Director of National Intelligence, appeared at an FBI search of a Georgia election office this week.

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Gabbard was present yesterday when the Federal Bureau of Investigation executed a search warrant in Fulton county, Georgia for documents related to the 2020 election, which Donald Trump has falsely claimed he won.

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In a letter to Gabbard, senator Mark Warner and congressman Jim Hines wrote, “The Intelligence Community should be focused on foreign threats and, as you yourself have testified, when those intelligence authorities are turned inwards the results can be devastating for Americans privacy and civil liberties.”

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El Salvador has signed a trade agreement with the United States, El Salvador’s ambassador to the US Milena Mayorga and US trade representative Jamieson Greer announced today.

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The US embassy said it was a deal for “reciprocal trade” which involved “addressing a number of non-tariff barriers including simplifying regulatory requirements.”

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In a statement, Greer said: “Today’s signing of the first Agreement on Reciprocal Trade in the Western Hemisphere will further strengthen markets for US exports and lower trade barriers facing American workers and producers. This Agreement is an important step in the deepening of our strategic partnerships in Latin America.”

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Part of the “strategic partnerships” that the Trump administration has built with El Salvador was the agreement for the US to expel Venezuelan deportees to El Salvador under Trump’s mass deportation agenda. Deportees under the policy suffered systematic and prolonged torture and abuse during their detention, according to reports.

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Minneapolis mayor Jacob Frey has just addressed the US Conference of Mayors at a winter meeting in Washington.

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“In Minneapolis, we’ve heard them say they will end this siege when we hand over voter rolls. We’ve seen them invade not just with this occupation, but also with the DOJ being used as a weapon,” Frey said. “They’re investigating me and several other local elected officials not because we’ve done something wrong but because we have exhibited one of the core responsibilities we have as mayors – speaking on behalf of your constituents. I’m going to continue to speak on behalf of my constituents. We won’t be intimidated.”

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Frey also told reporters that “Our police officers will do their jobs,” and “They’re not going to do somebody else’s job.” He brushed off Trump’s threat that he was “playing with fire” by not enforcing federal immigration laws.

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During his remarks, the mayor said leaders of cities across the country are “on the frontlines of a very important battle,” adding “This is not a time to bend our heads in despair out of fear that we may be next.”

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He warned: “If we do not speak up, if we do not step out, it will be your city that is next.”

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Mayor Jacob Frey addresses the U.S. Conference of Mayors (USCM) 94th Winter Meeting in Washington, DC, 29 January, 2026.”,”caption”:”Minneapolis Mayor Jacob Frey addresses the US Conference of Mayors (USCM) 94th Winter Meeting in Washington, DC, 29 January, 2026. “,”credit”:”Photograph: Annabelle Gordon/Reuters”}}],”attributes”:{“pinned”:false,”keyEvent”:true,”summary”:false},”blockCreatedOn”:1769716624000,”blockCreatedOnDisplay”:”14.57 EST”,”blockLastUpdated”:1769723224000,”blockLastUpdatedDisplay”:”16.47 EST”,”blockFirstPublished”:1769716823000,”blockFirstPublishedDisplay”:”15.00 EST”,”blockFirstPublishedDisplayNoTimezone”:”15.00″,”title”:”‘We won’t be intimidated,’ Minneapolis mayor Jacob Frey says at US Conference of Mayors”,”contributors”:[],”primaryDateLine”:”Thu 29 Jan 2026 21.55 EST”,”secondaryDateLine”:”First published on Thu 29 Jan 2026 06.05 EST”},{“id”:”697baeb98f083010589a4c55″,”elements”:[{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

White House Press Secretary Karoline Leavitt has announced that Trump will sign an executive order at 4pm today “launching new initiative to address drug addiction”.

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Leavitt made the announcement on X and shared a link to a CBS News story about the order that Trump is scheduled to sign.

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The CBS News story says the order will “coordinate a federal government response to drug addiction and substance abuse” and it states that, per a White House fact sheet, the order will create a “White House Great American Recovery Initiative,” which will advise federal agencies on directing grants to support addiction recovery and aim to increase awareness about drug addiction.

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The initiative will also reportedly advise agencies on how to integrate programs focused on drug prevention, early intervention, treatment, recovery support and re-entry, CBS reported.

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The Justice Department has filed charges today against the man who allegedly tried to spray Democrat representative Ilhan Omar with a “mixture of water and apple cider vinegar” from a syringe during a town hall in Minneapolis on Tuesday.

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The affidavit alleges that Anthony Kazmierczak “forcibly assaulted, opposed, impeded, intimidated an officer and employee of the United States” while she was engaged in official duties.

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Omar, who has repeatedly criticized the Trump administration’s immigration crackdown in Minnesota, had just finished calling for the resignation of Kristi Noem when Kamierczak appeared to say, “She’s not resigning. You’re splitting Minnesotans apart” after spraying her, according to the FBI.

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This morning, Omar appeared on CNN to reiterate her stance against the Trump administration’s aggressive approach to immigration. “The difference between the president and I is that I was raised to be a decent human being, and my faith teaches me to have compassion,” she said. “He lacks both of those things.”

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Moments after Trump said ‘we’re getting close’ on a deal to avert a US government shutdown, Democrats voted to block legislation to fund the Department of Homeland Security and several other agencies as they continued to negotiate with Republicans and the White House on new restrictions for Trump’s surge of immigration enforcement.

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Thursday’s 45-55 test vote came as Democrats have threatened a partial government shutdown when money runs out on Friday.

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As the country reels from the deaths of two protesters at the hands of federal agents in Minneapolis, Senate Democrats laid out a list of demands on Wednesday, including that officers take off their masks and identify themselves and obtain warrants for arrest.

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If these demands are not met, Democrats say they are prepared to block the wide-ranging spending bill, denying Republicans the votes they need to pass it and triggering a shutdown.

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Senate Democratic leader Chuck Schumer has said that Democrats won’t provide the needed votes until the US Immigration and Customs Enforcement (ICE) is “reined in and overhauled” and that this is “a moment of truth.”

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Trump said that Russian president Vladimir Putin agreed to not fire on Kyiv for a week due to cold weather.

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“I personally asked President Putin not to fire into Kyiv and various towns for a week, and he agreed to do that,” Trump said at the Cabinet meeting, citing “extraordinary cold” in the region.

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“It was very nice. A lot of people said, ‘Don’t waste the call, you’re not going to get that.’ And he did it,” Trump added.

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Speaking on the possibility of a government shutdown, Trump said: “Hopefully we won’t have a shutdown and we’re working on that right now. I think we’re getting close. The Democrats, I don’t believe, want to see it either. So we’ll work in a very bipartisan way, I believe, not to have a shutdown. We don’t want to shut down.”

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Talks of a government shutdown have been looming since Senate Democrats demanded a series of reforms on federal agents involved in Trump’s mass deportation campaign, including a prohibition on wearing masks, the imposition of a code of conduct and independent investigations of violations.

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Speaking on Venezuela, Trump said: “We have the major oil companies going to Venezuela now, scouting it out and picking their locations, and they’ll be bringing back tremendous wealth for Venezuela and for the United States. And the oil companies will do fine to Venezuela, will actually make for themselves more money than they’ve ever made before. And that’s a good thing.”

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He continued: “I just spoke to the president of Venezuela, informed her that we’re going to be opening up all commercial airspace over Venezuela. American citizens will be very shortly able to go to Venezuela, and they’ll be safe there.” He also added that he has “instructed Sean Duffy and everybody else concerned, including the military, that if you would, by the end of today, I’d like you out of the airspace over Venezuela”.

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Donald Trump has begun speaking at this afternoon’s Cabinet meeting. We will bring you lines from the meeting as they come.

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Since returning to office, Trump has used his cabinet meetings to review his administration’s accomplishments and provide Cabinet members with an opportunity to shower him with compliments.

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Matt Mahan, the moderate Democrat and mayor of San Jose, California, announced on Thursday that he would run for governor, joining a sprawling but stagnant field to succeed Gavin Newsom.

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In a series of interviews on Thursday, Mahan suggested he saw an opening as a candidate focused less on the national politics dominated by Donald Trump and more on the problems facing the state, including homelessness and the soaring cost-of-living.

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“We have a lot of candidates following a tired playbook,” Mahan told Politico. “They’re either running against Trump or they’re running in his image. I’m running for the future of California.”

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Mahan, 43, is a former tech entrepreneur who was first elected mayor of Silicon Valley’s largest city in 2022. Since then, he has drawn support for his pragmatic approach that he touts for helping make San Jose the safest big city in the nation.

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For weeks, he has signaled an interest in running for governor. His entrance into the race, months before the June primary, reflects the unsettled nature of the field, which has so far failed to produce a front-runner.

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Mahan is a frequent critic of Newsom, who is term-limited and cannot run again, over the governor’s approach to homelessness, crime reduction and even his social media taunting of the president.

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The Democrats running for governor include former congresswoman Katie Porter, congressman Eric Swalwell, former health and human services secretary Xavier Becerra, former Los Angeles mayor Antonio Villaraigosa, and billionaire climate activist Tom Steyer.

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Welcoming Mahan to the race, Steyer said in a statement: “California needs a governor who will stand up to powerful interests, not carry their water.”

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Earlier, Homan said that the immigration enforcement surge in the Twin Cities is “targeted”.

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“We know exactly who we’re looking for,” Trump’s border czar said, despite many people who have minor or no criminal convictions being caught in the dragnet.

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When a reporter asked whether undocumented immigrants — who have not committed a crime — would be affected by the ongoing operation, Homan was resolute.

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“If you’re in the country illegally, you’re never off the table,” he said.

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A reminder that living in the US without legal status is a civil offense.

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Homan said if the “message” that the Trump administration sends to undocumented immigrants is “don’t worry, unless you commit a serious crime, you’re good to go” they are “never going to fix this problem”.

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Homan didn’t answer a reporter’s question about the specific number of federal immigration agents that are currently in Minneapolis.

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“There’s been some rotations,” he said.

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This comes after reports that, after Gregory Bovino left the state, a number of border patrol officers were also directed to leave.

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Homan also noted that “cooperation” from local officials in Minnesota, specifically access to jails, could lead to the federal immigration crackdown easing up, and a reduction of agents throughout the state.

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“As we see that cooperation happen, then redeployment will happen,” he said.

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During Thursday’s press conference, Tom Homan noted that the administration has “recognized that certain improvements could and should be made” in the ongoing immigration enforcement operation in Minnesota, but didn’t specify what those looked like or when they would be implemented.

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The border czar also refused to comment on the newly published video footage of Alex Pretti earlier this month, which appears to show officers grabbing Pretti and bringing him to the ground during intense protests that have gripped Minneapolis.

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“We’ll let the investigation play out and let it go where it goes,” Homan added.

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“I do not want to hear that “everything that’s been done here has been perfect”, Homan said, without referring specifically to the fatal shooting of Renee Good and Alex Pretti.

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Homan noted that while no “agency is perfect” he did not come to Minneapolis to create “headlines”. The federal immigration enforcement surge is “going to improve because of changes we’re making”, he said.

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Tom Homan acknowledges in remarks in Minneapolis that there are “improvements” that should be made in how the federal government has carried out immigration enforcement in Minnesota.

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“ICE is enforcing laws enacted by Congress through a federal statute,” he said. “That said, I’m not here because of the federal government has carried this mission out perfectly.”

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Homan went on to say, “President Trump and I, along with others in administration, have recognized that certain improvements could and should be made. That’s exactly what I’m doing here.”

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Trump’s border czar also vowed to say in Minnesota “until the problem’s gone.”

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“We will conduct targeted enforcement operations targeting what we’ve done for decades,” he said. “When we hit the street, we know exactly who we’re looking for.”

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The border czar also acknowledged people’s right to protest, but urged the public to “keep it peaceful.”

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In Minneapolis, Trump’s “border czar” Tom Homan is set to address reporters shortly.

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A reminder that Homan took over the federal immigration surge in the North Star state this week, after top border patrol official, Gregory Bovino, was reassigned in the days following the fatal shooting of Alex Pretti.

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I’ll bring you the latest lines from the press conference.

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Amy Klobuchar, the Democratic US senator and one-time presidential candidate, announced she will run for governor of Minnesota, an expected move after the incumbent governor, Tim Walz, dropped out of the race in early January.

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“Minnesota, we’ve been through a lot,” Klobuchar said in a video posted on X on Thursday morning, calling out political violence across the state including the recent killings of Renee Good and Alex Pretti.

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She continued: “We cannot sugar coat how hard this is, but in these moments of enormous difficulty, we find strength in our Minnesota values of hard work, freedom and simple decency and good will. These times call for leaders who can stand up and not be rubber stamps of this administration.”

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She also emphasised: “I’m running for every one … for every Minnesotan who wants ICE and its abusive tactics out of the state we love.”

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Immigration and Customs Enforcement has ended its “enhanced operations” in the state of Maine, according to senator Susan Collins. Collins said this morning in a post on X that the move came after multiple discussions between her and homeland Security Secretary Kristi Noem.

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Collins wrote on X:

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n

There are currently no ongoing or planned large-scale ICE operations here. I have been urging Secretary Noem and others in the Administration to get ICE to reconsider its approach to immigration enforcement in the state. I appreciate the Secretary’s willingness to listen to and consider my recommendations and her personal attention to the situation in Maine. ICE and Customs and Border Patrol will continue their normal operations that have been ongoing here for many years.

n

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Videos emerged on Wednesday of a previous confrontation between Alex Pretti and federal agents, 11 days before the ICU nurse was fatally shot by federal officers in Minneapolis. About two minutes of video, published on Wednesday by The News Movement, a digital news outlet, shows an incident on 13 January in Minneapolis in which officers appeared to grab Pretti and bring him to the ground during intense community protests against the federal crackdown in the city.

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Sahan Journal, a nonprofit news site that reports on immigrants and communities of color in Minnesota, reported that day that dozens of residents had showed up to protest and observe a federal immigration sweep in the area. On the same morning, just two blocks away, a young woman named Aliya Rahman was violently pulled from her car while trying to drive past federal immigration agents and roughly treated in an image that prompted widespread outrage.

Steve Schleicher, an attorney representing Pretti’s family, said in a statement, “A week before Alex was gunned down in the street – despite posing no threat to anyone – he was violently assaulted by a group of ICE agents. Nothing that happened a full week before could possibly have justified Alex’s killing.”

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In other news:

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  White House Border czar Tom Homan is expected to address the press in Minneapolis after being sent to take the reins on the Trump administration’s immigration crackdown in Minnesota. ICE officers in the state were directed to avoid engaging with “agitators,” and only target “aliens with a criminal history,” according to an internal memo reviewed by Reuters.

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  Senate Democrats have threatened to block legislation that would fund the Department of Homeland Security and several other agencies, potentially bringing the government a step closer to a partial shutdown if Republicans and the White House do not agree to new restrictions on President Donald Trump’s surge of immigration enforcement. Senate Democratic leader Chuck Schumer said Wednesday that Democrats won’t provide needed votes until US Immigration and Customs Enforcement is “reined in and overhauled.” In posts on X, Schumer also ramped up the pressure for DHS secretary Kristi Noem and top Trump aide Stephen Miller to go, and repeated calls for the president to pull ICE agents out of Minnesota.

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  A federal judge in Minnesota blocked the Trump administration from arresting and detaining the 5,600 refugees living in the state. In a ruling issued on Wednesday, US district judge John R Tunheim granted the Advocates for Human Rights, which represents midwesterners seeking asylum, a temporary restraining order blocking Operation Post-Admission Refugee Reverification and Integrity Strengthening (“Operation Parris”). He also ordered the Department of Homeland Security to release and return to Minnesota anyone already detained by the administration under the operation.

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  The parents of Alexi Pretti retained a former federal prosecutor who helped Minnesota’s attorney general convict police officer Derek Chauvin of the murder of George Floyd. Pretti’s family has retained Steve Schleicher, a partner at the Minneapolis firm Maslon, who served as a special prosecutor in the 2021 trial over Floyd’s murder. Schleicher has taken on the case pro bono, PBS News reports. Earlier this month, the family of Renee Good, who was also killed by an ICE agent in Minneapolis, retained another lawyer involved in the George Floyd case – the Chicago-based firm Romanucci & Blandin, which represented Floyd’s family.

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  Customs and Border Protection (CBP) confirmed that the two officers involved in the fatal shooting of Alex Pretti on Saturday have been placed on administrative leave as “is the standard protocol”. But it’s currently unclear exactly when they were placed on leave. Federal law enforcement officers who have been involved in a shooting are typically placed on administrative leave for the course of the investigation.

  n The confirmation is also in direct contradiction to what border patrol commander Greg Bovino said in the aftermath of the shooting. On Sunday, he told a press conference that “all agents that were involved in that scene are working, not in Minneapolis, but in other locations, that’s for their safety.”

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