The briefing for Tuesday, February 3.

The Trump administration announced Monday the creation of 'Project Vault,' a $12 billion strategic reserve for rare earth elements designed to reduce U.S. dependence on China. The initiative will be funded through a $10 billion loan from the U.S. Export-Import Bank and nearly $1.67 billion in private capital, with the government expecting to profit from the 15-year loan arrangement.

The move comes in response to China's near-monopoly on rare earth processing, which it has previously used as leverage in trade negotiations. China controls roughly 70% of global rare earth mining and 90% of processing for these critical minerals, which are essential for manufacturing jet engines, radar systems, electric vehicles, and consumer electronics. During trade talks last year, Beijing restricted rare earth exports, creating supply chain vulnerabilities for American manufacturers.

The strategic reserve mirrors the existing petroleum reserve and will help shield U.S. automakers, electronics manufacturers, and defense contractors from future supply disruptions. Secretary of State Marco Rubio will highlight the initiative at a ministerial meeting on critical minerals Wednesday, where Vice President JD Vance will deliver the keynote address to officials from dozens of European, African, and Asian nations.

Iranian President Masoud Pezeshkian announced Tuesday that he has instructed Foreign Minister Abbas Araghchi to 'pursue fair and equitable negotiations' with the United States, marking the first clear signal that Tehran wants to engage in talks following last month's deadly crackdown on nationwide protests. The reformist president's announcement represents a significant shift after weeks of warning that turmoil in Iran had gone beyond his control.

The decision signals that Pezeshkian received backing from Supreme Leader Ayatollah Ali Khamenei for negotiations the 86-year-old cleric had previously dismissed. Turkey has been working behind the scenes to facilitate talks in Istanbul later this week as U.S. Mideast envoy Steve Witkoff travels the region. According to Khamenei adviser Ali Shamkhani, the talks would begin indirectly before potentially moving to direct negotiations, focusing solely on nuclear issues.

Key challenges remain, particularly President Trump's expanded demands that now include Iran's nuclear program. Trump ordered bombing of three Iranian nuclear sites during last June's 12-day Israel-Iran war. Iran had been enriching uranium to 60% purity—a short technical step from weapons-grade levels—though the country insists it does not seek nuclear weapons. The quantity of Iran's enriched uranium stockpile remains unknown, with portions buried under rubble from the bombing and considered too dangerous to extract.

President Trump announced Monday that the United States will lower tariffs on Indian goods to 18% from 25% after Prime Minister Narendra Modi agreed to stop buying Russian oil and commit to purchasing more than $500 billion in American products. The agreement, reached during a morning phone call, also includes India reducing its trade barriers to zero and will result in the removal of an additional 25% penalty tariff imposed over Delhi's Russian oil purchases.

The deal comes after months of tension over India's continued reliance on discounted Russian crude oil following Moscow's 2022 invasion of Ukraine. Trump has long pressed India to cut ties with Russian energy while Modi faced pressure to address India's trade surplus with the U.S. In June, Trump imposed a 25% tariff on Indian goods, followed by an additional 25% in August specifically targeting Russian oil purchases, bringing the combined rate to 50%.

The agreement arrives just days after India and the European Union finalized a landmark free trade deal following nearly two decades of negotiations. Modi expressed enthusiasm for the U.S. deal, stating Trump's 'leadership is vital for global peace, stability, and prosperity.' However, critics note that the new 18% tariff rate remains six times higher than the 2.5% average American importers paid before Trump's tariff policies took effect.

U.S. District Judge Ana Reyes blocked the Trump administration Monday from terminating temporary protected status for roughly 350,000 Haitians living and working in the United States. The judge granted a request to pause the termination while a lawsuit challenging the decision proceeds, with the TPS designation having been scheduled to expire Tuesday.

In an 83-page opinion, Judge Reyes stated that plaintiffs were likely to prevail on the merits of the case, finding it 'substantially likely' that Homeland Security Secretary Kristi Noem predetermined her termination decision because of 'hostility to nonwhite immigrants.' The temporary stay means the termination is currently null and void, with no bearing on TPS holders' ability to work or their protection from detention and deportation.

Haiti's TPS status was initially activated in 2010 following a catastrophic earthquake and has been extended multiple times as the Caribbean nation continues to face gang violence that has displaced hundreds of thousands. The Trump administration argues that conditions have improved sufficiently for safe return, though community leaders and attorneys for Haitian TPS holders maintain the country remains unsafe. DHS spokesperson Tricia McLaughlin criticized the ruling as 'lawless activism,' stating the protection 'was never intended to be a de facto amnesty program.'

Speaker Mike Johnson faces a crucial test Tuesday as the House holds a procedural vote on legislation to end the partial government shutdown that began Saturday. Johnson needs near-unanimous Republican support to proceed, able to afford losing only one GOP member with perfect attendance, though some lawmakers are threatening to block the effort without additional priorities included.

President Trump weighed in Monday via social media, insisting 'There can be NO CHANGES at this time' and urging all Republicans and Democrats to vote yes. The measure would fund most of the federal government through September 30 while providing only two weeks of funding for the Department of Homeland Security, setting up a deadline for negotiating potential changes to ICE operations. Trump characterized the approach as his 'play call' to lower tensions.

The current shutdown differs from last fall's record-breaking 43-day impasse, as Congress has already passed six of twelve annual appropriations bills, including nutrition assistance and national parks. However, the remaining bills represent roughly three-quarters of federal spending, including the Defense Department, meaning service members and federal workers could miss paychecks. Democratic leader Hakeem Jeffries made clear Democrats won't help Republicans pass the procedural measure, which includes resolutions they oppose such as holding Bill and Hillary Clinton in contempt over the Jeffrey Epstein investigation.

NASA announced Tuesday it will target a March launch for its Artemis moon mission after encountering hydrogen leaks during Monday's critical fueling test at Kennedy Space Center. The space agency said the delay will allow teams to review data and conduct a second wet dress rehearsal before the flight test, with the four astronauts—three Americans and one Canadian—being moved out of their nearly two-week quarantine.

The leaks emerged just hours into Monday's daylong operation as launch controllers began loading the 322-foot rocket with more than 700,000 gallons of super-cold hydrogen and oxygen. Excessive hydrogen built up near the rocket's bottom, forcing teams to halt hydrogen loading at least twice while attempting workarounds using techniques developed during similar problems in 2022. NASA also cited delays in close-out operations and recurring audio dropout issues for ground crew communications.

The nearly 10-day mission will send Commander Reid Wiseman and his crew past the moon, around its far side, and back to Earth without entering lunar orbit or landing, testing the Orion capsule's life support and vital systems. The flight represents NASA's first lunar voyage with astronauts in more than half a century as part of the Artemis program, which aims for sustained lunar presence and sets the stage for future moon landings. NASA has not provided a specific launch target date in March.