The GOP pays an Elon Musk tax

DOGE DRAWBACK — From the time the Donald Trump-Elon Musk governing partnership took shape, it’s had an expiration date attached to it. The relationship wasn’t built to last — the egos were too big, the principals too mercurial, the politics surrounding the world’s richest man’s efforts to reshape the federal government too radioactive.

Now, POLITICO’s Rachel Bade reports, it’s coming to an end. In the coming weeks, Musk will begin dialing back his role in Washington. Trump has told his inner circle and members of his Cabinet that both men have agreed he’ll be transitioning out of the administration and his polarizing role atop the DOGE initiative and stepping into a more supportive role.

For Republicans, Musk’s departure can’t come soon enough. On Tuesday, in the first big test of the national mood in the wake of Musk’s slashing tenure atop DOGE, persuasive evidence emerged that the tech mogul has become a political liability.

It wasn’t just the outcome in Wisconsin, where Democrats won a contentious swing-state Supreme Court race that functioned as a referendum on Musk. It was the results in Florida, in one of the nation’s most rock-ribbed Republican House districts, that suggested Musk’s political blast radius could be a problem for the GOP going into the 2026 midterm elections.

There were two special House elections in Florida Tuesday, both in comfortably Republican seats where Democrats typically don’t have a prayer. It was clear going in that Democrats were poised to overperform in each of them — a result of grassroots rage toward Trump and the party’s frequent advantage in special and off-year elections.

The Democratic nominees in both districts indeed ran better than expected — far better than in 2024 — but in the end, the GOP held both seats. Yet the Republican victory in Florida’s Panhandle-based 1st District obscured a troubling harbinger that appears to be connected to Musk — a loss in Pensacola’s Escambia County.

Closer to Dallas than to Miami, Escambia is the westernmost county in the state. Like much of the state’s Panhandle, its politics are more Deep South than South Florida. It’s the least red of the four counties that make up the district, but that’s misleading given the region’s general conservative orientation: Escambia, which borders Alabama, hasn’t voted for a Democratic presidential nominee since 1960. It’s a place that voted for Barry Goldwater in 1964, George Wallace in 1968, delivered a nearly 20-point victory to Trump in 2024 and also voted for polarizing former GOP Rep. Matt Gaetz by big margins — even after the sex scandal allegations.

On Tuesday, however, Escambia County broke with habit and narrowly voted for Democrat Gay Valimont over Republican Jimmy Patronis. In 2024, when Valimont was also the Democratic nominee, she lost there by 14 points.

In fact, across the four counties that make up the 1st District, Valimont lost by 32 points in 2024. On Tuesday, that margin was cut in half — she lost by 15.

While it’s too early to say for certain, Musk’s DOGE initiative appears to have played a material role in the changed circumstances. There are more federal workers in Florida’s 1st District than in any of state’s 27 other congressional districts. Many of them are based in the Pensacola area — known as the Cradle of Naval Aviation — where the military imprint is impossible to miss. Navy installations include Pensacola Naval Air Station, Saufley Field and Corry Station. There’s also Whiting Field, about 30 miles northeast of Pensacola.

The military presence is so far-reaching that a financial service center for Navy Federal Credit Union — which is not a government entity but rather a credit union which serves military personnel, retirees and their families, Department of Defense civilian employees and government employees and contractors assigned to DOD installations — is the largest non-governmental employer in Escambia County.

In nearby Okaloosa County, Eglin Air Force Base and Hurlburt Field are the largest employers. Neighboring Santa Rosa County has many bedroom communities that serve these installations.

The federal government imprint doesn’t stop there — park rangers have already been laid off at the region’s Gulf Islands National Seashore.

What the 1st District special election results suggest is that voters imposed an Elon Musk tax on the GOP. It wasn’t enough to flip a seat in a conservative House district in Florida, but it was big enough that it should be a concern in other regions with sprawling military complexes — such as Hampton Roads, Virginia, or the San Diego area — and in places with sizable concentrations of federal workers.

Not only is Musk himself underwater in terms of his popularity, polls show DOGE/government funding to be among the least popular items on Trump’s policy agenda. His departure from the scene will be welcome news to Republicans who will be on next year’s ballot. The question is whether it’s too late for those in competitive districts.

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A message from American Chemistry Council:

Chemistry Powers American Greatness. Chemistry is foundational to America’s supply chain. It fuels national defense, energy security, healthcare, and innovation. Growing U.S. chemical production means jobs, stronger supply chains, and winning the global competition. Over 75% of Americans agree: chemistry is essential to our economy and security. By championing smart, pro-growth policies we can bolster chemical production here and help make America the world’s manufacturing superpower. American success relies on American chemistry.

— Trump imposes 10 percent universal tariff, higher for top trade partners: President Donald Trump announced today that he will impose a 10 percent tariff on imports from all countries around the world and will slap an additional, individualized tariff on approximately 60 countries his administration believes have the most unfair trade relationships with the U.S. That includes a 34 percent tariff on China, and a 20 percent tariff on the European Union.

— Senate Republicans unveil retooled budget blueprint: Senate Republicans unveiled their new budget blueprint today as they race to take the next step toward enacting President Donald Trump’s preferred “one big, beautiful bill” to enact his domestic agenda. The text of the resolution comes as Majority Leader John Thune wants to adopt the budget resolution on the floor this week, teeing up the House to try to adopt it before heading home for a two-week Easter recess. The Senate could vote as soon as this evening to advance the blueprint, kicking off a marathon session known as a vote-a-rama that could spill into the weekend before a final vote.

— Supreme Court wrestles with red state efforts to defund Planned Parenthood: The Supreme Court’s conservative majority appeared sympathetic today to South Carolina’s bid, backed by the Trump administration, to exclude Planned Parenthood from its Medicaid program and deny affected patients the ability to challenge that exclusion in court. But while Planned Parenthood’s provision of abortion services outside of Medicaid is what led South Carolina to blacklist the group, abortion was rarely mentioned over nearly two hours of arguments. Instead, the justices spent most of the day debating whether Congress should have to use “magic words” like “right” or “entitlement” when writing a law to guarantee an individual’s ability to enforce it in court. Planned Parenthood teamed up with an individual Medicaid recipient to sue the state under a provision in federal law that says Medicaid recipients can choose any “qualified and willing” provider.

— Hunter Biden gives up law license in Washington, D.C., avoiding disbarment proceedings: Hunter Biden has agreed to give up his license to practice law in Washington, D.C., as a result of his criminal record. The D.C. Bar’s Board on Professional Responsibility, which oversees attorney discipline proceedings, revealed the decision by former President Joe Biden’s son in a series of filings made public this week. The voluntary decision to accept disbarment avoids potentially protracted proceedings over whether Hunter Biden’s two prior criminal cases required him to lose his law license. Last June, he was convicted of owning a gun while using illegal drugs and lying on a gun-purchase form about his drug use. And in September, he pleaded guilty to tax evasion and other tax crimes.

— Top Trump FDA official Brenner hits pause on Novavax Covid-19 vaccine decision: A top FDA official directly intervened in an agency review of Novavax’s Covid-19 vaccine, pausing the approval process to ask for more data on the shot, according to four people familiar with the decision granted anonymity to discuss the approval status. Dr. Sara Brenner, FDA’s Principal Deputy Commissioner, took the highly unusual step, cutting against longstanding precedent at the agency designed to shield scientific assessments from political interference. Typically, political FDA appointees follow the advice of career staff tasked with reviewing reams of data on drugs and vaccines seeking approval.

A message from American Chemistry Council:

TOGETHER AGAIN — NATO is rock solid and so is the United States’ commitment to the alliance, NATO Secretary-General Mark Rutte said today, a reaction to growing worry about American disengagement from Europe under President Donald Trump. “The Americans have stated again and again they are committed to NATO, to Article 5 … I’m absolutely convinced this alliance is there to stay, with the U.S.,” he told reporters.

That commitment comes “with a clear expectation, the expectation that on this side of the Atlantic and Canada, we will spend more” on defense, he added. The alliance’s target is to spend at least 2 percent of GDP on defense, but Trump wants that raised to 5 percent. Rutte has talked of “considerably north of 3 percent.” The issue will come up at the alliance foreign ministers’ meeting in Brussels on Thursday and Friday.

Trump’s comments about not defending NATO countries not spending enough on defense and his threats to invade Greenland are raising doubts about Washington’s commitment to NATO and Europe’s defense.

READY THE TROOPS — Greece will spend €25 billion as part of a 12-year defense strategy, in the “most drastic transformation in the history of the country’s armed forces,” Prime Minister Kyriakos Mitsotakis announced in parliament today. The country’s new defense strategy is based on two key pillars: the integration of advanced defense technologies and the active participation of the Greek defense industry in all arms programs.

“The world is changing at an unpredictable pace,” Mitsotakis said. “We are now facing a different kind of war than we were used to — at least the kind our armed forces were prepared for.” The new plan aims to modernize Greece’s armed forces as the country emerges from a decade-long financial crisis and tries to keep pace with the defense advances of its neighbor and historical rival, Turkey.

It comes amid U.S. President Donald Trump’s pressure on NATO allies to spend more on defense. Greece already spends more than 3 percent of its GDP on its military, more than double the EU average.

COURT WATCHERS — Three Huawei employees and a managing director from Brussels conference organizer Forum Europe appeared in court this week for hearings related to the corruption investigation into the Chinese tech giant’s lobbying in Europe. Police raided more than 20 locations in Belgium and Portugal last month within an investigation into alleged illegal payments made by Huawei to secure an open letter signed by eight European lawmakers in support of the company’s interests, according to the Belgian prosecutor and an arrest warrant seen by POLITICO. Five people were charged as part of the investigation, prosecutors said on March 18.

In the first session, the parties met for 15 minutes behind closed doors at Brussels’ Chamber of Accusation, an appeals court where defense teams discuss ongoing investigations with senior Belgian judges regarding procedural decisions such as whether individuals should be released from custody. A second session today lasted for more than two hours. According to a court timetable available on site at the Brussels Palace of Justice, the suspects include a lobbyist from Huawei as well as a senior executive and a procurement manager of the Chinese tech firm. The higher profile Huawei employees can be named as Han W. and Valerio O.

All are suspected of corruption, participation in a criminal organization and money laundering. They are presumed innocent. Two other defendants are contractors, including one from Forum Europe who is charged with “active corruption of a person holding a public office in an organization governed by public international law,” according to the timetable.

A message from American Chemistry Council:

Let’s Make America the Manufacturing Superpower

Chemistry is the backbone of American innovation and strength. From national defense to energy independence, healthcare, and advanced technology, U.S. chemical manufacturers drive the products and solutions our nation relies on every day.

By growing U.S. chemical production, we can create jobs, bolster our sector’s trade surplus, and ensure America wins the global competition. Over 75% of Americans agree: chemistry is essential to our economy and technological edge.

Policies that support American chemical manufacturers, in turn support families, businesses, and our nation.

By championing a smart, pro-growth agenda, leaders in Washington can bolster chemical production and help make America the world’s manufacturing superpower.

American success relies on American chemistry.

At least 20

The number of Signal chats that National Security Adviser Mike Waltz’s team set up to coordinate official work on issues including Ukraine, China, Gaza, Middle East policy, Africa and Europe, according to four people who have been personally added to Signal chats.

FROM BALLOON ANIMALS TO DEEP SEA DIVERS — It’s in your birthday balloons. Scientists have used it to pull carbon out of the atmosphere, and deep-sea divers depend on the inert gas to dodge decompression sickness. Helium is a unique element, lightweight and a liquid when cooled. However, supply isn’t meeting the demand. Its fickle nature and the closure (by sale, force, and fire) of helium processing plants over the last two years have restricted the amount of helium available to be tapped around the globe. And companies and industries reliant on the gas are innovating to do without it, Callum Bains writes for the BBC.

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