The briefing for Friday, January 30.

Panama's Supreme Court ruled late Thursday that the concession allowing a Hong Kong company to operate ports at both ends of the Panama Canal was unconstitutional. The decision follows an audit alleging irregularities in the 2021 extension of the 25-year contract held by Panama Ports Company, a subsidiary of CK Hutchison Holdings. The court's brief statement provided no guidance on what happens next to the strategically important facilities.

The ruling advances a key Trump administration objective to block Chinese influence over the Panama Canal. Secretary of State Marco Rubio made Panama his first overseas stop, making clear the U.S. views port operations as a national security issue. Trump has repeatedly claimed China operates the canal and even suggested Panama should return it to U.S. control, though Panama's government insists it maintains full sovereignty and China has no operational control.

Panama's comptroller determined the contract irregularities cost the government approximately $300 million since 2021 and an estimated $1.2 billion over the original 25-year term. The audit found missing payments, accounting errors, and alleged "ghost" concessions. CK Hutchison announced plans last year to sell its stake to a consortium including BlackRock, but the deal stalled after objections from the Chinese government. The company said the ruling "lacks legal basis" and threatens thousands of Panamanian families dependent on port operations.

Venezuela's acting President Delcy Rodríguez signed legislation Thursday opening the nation's oil sector to privatization, reversing more than two decades of socialist state control. The National Assembly passed the measure earlier in the day, less than a month after the U.S. military seized former President Nicolás Maduro. The U.S. Treasury Department simultaneously began easing sanctions on Venezuelan oil and expanded American energy companies' ability to operate in the country.

The new law gives private companies control over oil production and sales, ending the state-owned PDVSA's monopoly. It sets a royalty cap of 30% and allows independent arbitration of disputes, removing the mandate for cases to be settled only in Venezuelan courts controlled by the ruling party. Foreign investors view these changes as crucial protections against future expropriation. The legislation strictly prohibits entities from China, Russia, Iran, North Korea, or Cuba from participating.

Rodríguez spoke with President Trump and Secretary of State Rubio on Thursday as the administration outlined plans to oversee Venezuela's oil sales. Venezuela has the world's largest proven crude reserves, and Trump said his administration would take control of exports to revitalize the crippled industry through foreign investment. Ruling-party lawmaker Orlando Camacho said the reform "will change the country's economy," while opposition members urged transparency provisions to combat systemic corruption.

Senate leaders worked late Thursday to save a bipartisan spending deal and prevent a partial government shutdown at midnight Friday. Democrats and President Trump struck an agreement to separate Homeland Security funding from the broader spending package, funding DHS for two weeks while Congress debates new restrictions on Immigration and Customs Enforcement operations. The deal came after Democrats threatened to block the entire bill following the deaths of two protesters at the hands of federal agents in Minneapolis.

Trump encouraged both parties to cast a "much needed Bipartisan 'YES' vote" in a social media post Thursday evening. However, passage was delayed as Senate leaders worked through objections on both sides. Senator Lindsey Graham said he opposed the deal, citing concerns that ICE agents were being treated unfairly. The Senate was scheduled to reconvene Friday to continue negotiations ahead of the deadline.

Democrats demanded that the White House end roving patrols, coordinate with local law enforcement, and require agents to have "masks off, body cameras on" with proper identification. Senate Minority Leader Chuck Schumer called the Minneapolis shootings "state-sanctioned thuggery" and said Congress has a "moral obligation" to act. The standoff threatens a second shutdown in months, though Republicans appeared more willing to negotiate this time. If enacted, the two-week extension could lead to difficult negotiations on final Homeland Security funding.

President Trump said Thursday night he will announce his choice for Federal Reserve chairman Friday morning, a decision that could determine whether the central bank maintains independence from the White House. Trump has spent the past year attacking current Fed Chair Jerome Powell, whose term ends in May, demanding more aggressive interest rate cuts. "It's going to be somebody that is very respected, somebody that's known to everybody in the financial world," Trump told reporters.

Treasury Secretary Scott Bessent led the search with four known finalists: former Fed governor Kevin Warsh, current Fed governor Christopher Waller, BlackRock executive Rick Rieder, and White House National Economic Council Director Kevin Hassett. Trump suggested Hassett was the frontrunner before recently saying he wanted him to remain in his current role. Trump's comment that the pick is "somebody that could have been there a few years ago" fueled speculation he chose Warsh, a finalist in the 2017 search that led to Powell's selection.

Tensions escalated earlier this month when the Justice Department issued subpoenas to the Fed related to headquarters renovation costs. Powell issued a rare video statement saying "the threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the president." Powell's term on the Fed's board of governors runs through 2028, potentially allowing him to block Trump's nominees from controlling the board majority if he chooses to stay.

The Trump administration's immigration crackdown in Minnesota relies heavily on biometric surveillance and interconnected databases, including facial recognition and license-plate readers. Luis Martinez, a U.S. citizen driving to work in Minneapolis this week, was stopped by masked federal agents who scanned his face with a cellphone before demanding identification. He was released only after producing his U.S. passport, which he said he carries specifically for fear of such encounters.

Homeland Security disclosed Wednesday it uses a facial recognition app called Mobile Fortify that relies on "trusted source data." The department declined to detail its law enforcement methods but said technology aids in arresting "criminal gang members, child sex offenders, murderers, drug dealers, identity thieves and more, all while respecting civil liberties and privacy interests." Civil liberties experts say the expanding surveillance apparatus risks sweeping up citizens and noncitizens with little transparency or oversight.

Over the past year, DHS and other federal agencies dramatically expanded their ability to collect and analyze personal data through agreements with local, state, federal and international agencies, plus contracts with technology companies and data brokers. The databases include immigration records, facial images, and vehicle information. Dan Herman, a former CBP senior adviser, said the government's access to this data "poses a threat to people's privacy rights and civil liberties without adequate checks." Agents can now identify people through facial recognition, trace movements through license-plate readers, and use phone-location data to reconstruct daily routines.

The European Union added Iran's Islamic Revolutionary Guard Corps to its terrorist list Thursday in response to the deadly crackdown on protesters in recent weeks. The bloc's top diplomat Kaja Kallas said "repression cannot go unanswered," placing the IRGC on the same level as jihadist groups like al-Qaeda and Islamic State. French Foreign Minister Jean-Noel Barrot described it as "the most violent repression in Iran's modern history," with human rights groups estimating thousands killed by security forces including the IRGC.

The designation subjects the IRGC to travel bans and asset freezes aimed at removing support networks. The EU also sanctioned six entities and 15 Iranian individuals, including Interior Minister Eskandar Momeni and Prosecutor General Mohammad Movahedi Azad, for involvement in violent repression and arbitrary arrests. France had previously hesitated over fears the move would end diplomatic ties, but changed course Wednesday to back the Italy-led push. Kallas said she expects diplomatic channels to remain open despite the designation.

Iran's Foreign Minister Abbas Araghchi called the EU decision a "stunt" and "major strategic mistake." The IRGC, established after the 1979 revolution, is Iran's most powerful armed force with approximately 190,000 active personnel and capabilities across land, air, and sea. It controls the paramilitary Basij Resistance Force used to suppress dissent and exerts influence overseas by providing money, weapons, and technology to allied governments and groups. Australia, Canada, and the U.S. have already classified the IRGC as a terror group, but it has not been proscribed in the UK.