Washington, DC

1. AG jockeying begins
2. War intensifies, peace talks stall
3. $1.5T defense request
4. DHS shutdown drags on
5. Jobs rebound in March

Energy stocks are ▲ 30% this year.

Attorney general hopefuls jostle

The list of people who could potentially replace Pam Bondi as leader of the Justice Department is already getting crowded. Trump has Deputy Attorney General Todd Blanche at the helm of the department in an acting capacity, an opportunity for Blanche to prove to the president that he’s the best person for the job. But Trump is also eyeing Lee Zeldin, administrator of the Environmental Protection Agency. And while those seem to be the top contenders at the moment, other Trump allies want in on the action. Two names being floated: Jeanine Pirro, US attorney for DC, and Harmeet Dhillon, assistant attorney general for the Civil Rights Division at DOJ. Trump’s former personal lawyer Alina Habba might be trying to say something about her potential interest in the gig, posting earlier today on Instagram a picture with Trump in the Oval Office.

— Shelby Talcott

One US crewmember rescued from downed jet

Iran shot down an F-15E jet this morning, despite Trump’s assertion earlier this week its military had “no anti-aircraft equipment” remaining. One of the jet’s US crew members was rescued this afternoon, and a search is ongoing for the remaining service member. Another combat plane, an A-10 Warthog, was shot down around the same time and the pilot was rescued, according to The Washington Post. Attacks on infrastructure have intensified in the region, with reports indicating damage to a desalination plant and a refinery in Kuwait, while officials in Abu Dhabi closed a gas facility after an attack, and Trump posted footage of yesterday’s US targeting of an Iranian bridge. Peace talks have stalled, with Iran saying it does not plan to send mediators to Islamabad for negotiations next week.

White House asks Congress to spend big on defense

The Trump administration on Friday asked lawmakers to boost defense spending by 42% while cutting all other spending by 10% for fiscal year 2027. The request will face strong headwinds on Capitol Hill, where appropriators rejected a similar ask last year. Democrats have already panned it as “morally bankrupt,” while Republicans will be especially wary of redirecting cash to the military as the war in Iran raises prices ahead of elections. The White House is suggesting enacting $350 billion of the $1.5 trillion defense spending via the reconciliation process, which requires support from almost all GOP members. Proposed cuts elsewhere would affect the Community Development Financial Institutions Fund; the Internal Revenue Service; a pair of housing programs; and the Minority Business Development Agency. Deficit hawks meanwhile slammed the decision to exclude debt projections, which the Committee for a Responsible Federal Budget called “astonishing.”

— Eleanor Mueller

DHS funding once again in a holding pattern

Tension between Republicans in the House and Senate has put funding the Department of Homeland security in a holding pattern. Speaker Mike Johnson faced blowback Thursday from rank-and-file lawmakers after he pushed a Senate-passed bill that just a week before he had trashed, and that his conference had rejected. Sen. Lindsey Graham, R-S.C., the Senate Budget Committee chair, is signaling he’ll move quickly on a reconciliation bill first to fund ICE and Border Patrol for multiple years, and then another to put a “down payment” on Trump’s voter ID bill. Meanwhile, House Democrats are digging in. Reps. Chuy Garcia, D-Ill., Robert Garcia, D-Calif., and Ro Khanna, D-Calif., signed a letter with dozens of Democrats first provided to Semafor, calling on the Trump administration to “immediately withdraw ICE agents from all airports.” House Democrats are expected to hold a caucus call Monday evening.

— Nicholas Wu

Jobs data beat expectations for March

The labor market bounced back in March from a dismal February, with US employers beating expectations and adding 178,000 jobs, instead of the 65,000 jobs economists predicted. The unemployment rate, expected to hit 4.4%, fell to 4.3%, according to Bureau of Labor Statistics data released today. Analysts pegged some of the good news to the resolution of large medical worker strikes, with the health care sector accounting for 43% of the growth. But other industries saw sizable gains, too, including construction, manufacturing, and hospitality. Wage growth is solid at 3.5% for the year, below inflation. So far the war in Iran hasn’t affected the jobs market, but economists warn that rising gas prices could push inflation closer to 4% — dampening wage gains and threatening hiring.

Kevin Hassett, Director, National Economic Council; George Kurtz, Founder & CEO, CrowdStrike; Michelle Gass, President & CEO, Levi Strauss & Co.; Horacio Rozanski, Chairman, President, & CEO, Booz Allen; Greg Case, President & CEO, Aon; and more will join the AI’s Next Chapter session at Semafor World Economy. This session will examine where AI innovation is accelerating, how breakthroughs will diffuse across economies and societies, and how the next chapter of global technological leadership will be defined.

White House

• NATO Secretary General Mark Rutte is scheduled to meet with President Trump on April 8th.
• A new app released by the White House shares user information with third parties. — NOTUS

Iran War

• The US is doubling its reinsurance commitment, to $40 billion, for ships traveling through the Strait of Hormuz. — Bloomberg
• Americans are largely pessimistic about the war, according to a new poll. — Reuters

Congress

• Kevin Warsh’s confirmation hearing as Federal Reserve nominee is set for April 16, with two Treasury Department aides named to help shepherd his nomination. — Politico

Politics

• Anthropic started a corporate PAC. — Axios
• Tiger Woods told police on the scene after he crashed his car that he was on the phone “with the president.”

World

• Pope Leo made anti-war comments during Mass on Palm Sunday and Holy Thursday that could be read as a veiled criticism of American leaders.

Immigration

• New data shows large numbers of immigrants without criminal records continued to be targeted after White House officials indicated a planned shift. — WaPo

Energy

• Market analysts predict average US gas prices will continue to rise, likely hitting between $4.25 and $4.45 per gallon next week. —Reuters

— US embassy in Beirut urges Americans to leave the country as the war escalates.

Semafor DC Team

Laura McGann, editor

With help from Elana Schor, senior Washington editor, and Morgan Chalfant,Washington briefing editor

Brendan Ruberry, copy editor

Contact our reporters:

Burgess Everett, Eleanor Mueller, Shelby Talcott, Nicholas Wu, David Weigel