Washington Edition

This is Washington Edition, the newsletter about money, power and politics in the nation’s capital. Today, White House correspondent Josh Wingrove looks at the last-minute maneuvering to give TikTok a reprieve. Sign up here and follow us at @bpolitics. Email our editors here.

Sale, Ban or Delay

And just like that, the bipartisan drive to ban TikTok unless its Chinese parent company sells it has transformed into a cross-party scramble to keep those dance videos on line.

TikTok is facing shutdown in the US under a law that Congress passed less than a year ago with overwhelming majorities. It kicks in Sunday.

The Supreme Court could rule as soon as tomorrow on a challenge to the law, but indications during arguments last week were that the court was likely to uphold it.

Rumors have swirled about potential buyers for the app, but with a problem: there’s little sign that owner ByteDance actually wants to sell.

So with many of TikTok’s 170 million US users agitating on its behalf, it became a question of who would flinch first?

Photographer: Gabby Jones/Bloomberg

In the end, two presidents did. Our reporting is that President Joe Biden’s outgoing administration, essentially, isn’t going to enforce a law taking effect on the Sunday of a holiday weekend, a day before President-elect Donald Trump’s inauguration, or simply can’t. That punts it to Trump, who once favored a ban but now likes the clout he personally wields on the app.

Even members of Congress who voted for the sale-or-ban law, which was based on worries TikTok exposed US users to data theft or manipulation by China, are looking for a way out. Senate Democratic leader Chuck Schumer said today he will “work with the Trump administration and with both parties to keep TikTok alive while protecting our national security.”

Rather than a ban or the status quo, Trump is looking for a third option.

His incoming security adviser, Michael Waltz, told Fox News that he’d enact an extension clause in the law, put in to accommodate a potential sale. But that’s not a catch-all. Trump probably can’t save TikTok through executive order alone, Bloomberg Intelligence’s Matthew Schettenhelm writes.

The more likely options are completing a divestiture — would Trump mega-ally Elon Musk jump in? — or changing the law. But, for now, the video clips will keep flowing, as will the warnings from security experts. — Josh Wingrove

Don’t Miss

Treasury Secretary nominee Scott Bessent warned that the US faces an economic crisis that will hammer middle- and working-class people if the 2017 Republican tax cuts aren’t extended before they expire.

FBI leaders have warned agents that they believe hackers who broke into AT&T ’s system last year stole months of their call and text logs, setting off a race to protect the identities of informants.

The very richest Americans were among the biggest winners during the presidency of Joe Biden, who warned in his farewell address of an “oligarchy” and a “tech industrial complex” threatening US democracy.

Trump is planning to release an executive order elevating crypto as a national policy priority and giving industry insiders a voice within his administration.

House Speaker Mike Johnson tapped Rick Crawford, an Arkansas Republican who has opposed Ukraine aid, as Intelligence Committee chair after abruptly ousting defense hawk Mike Turner from the post.

Florida Governor Ron DeSantis named state Attorney General Ashley Moody, a member of his inner circle, to fill the Senate seat opened by Marco Rubio’s nomination as Trump’s secretary of state.

Advisers to Trump are crafting a wide-ranging sanctions strategy to facilitate a Russia-Ukraine diplomatic accord in the coming months while at the same time squeezing Iran and Venezuela.

Trump’s pick to lead the Interior Department warned the US risks forfeiting a global competition to dominate artificial intelligence if it doesn’t build a more reliable, always-on electricity supply.

Retail sales in the US broadly advanced in December, indicating strong consumer demand to wrap up the holiday season.

Watch & Listen

Bloomberg Television’s Balance of Power early edition at 1 p.m. featured coverage of the confirmation hearing for Bessent to be Treasury secretary.

On the program at 5 p.m., hosts Joe Mathieu and Kailey Leinz interview Maryland Governor Wes Moore, a Democrat, about his plan for budget cuts and state taxes.

On the Big Take podcast, Bloomberg’s Israel bureau chief Ethan Bronner and Fares Alghoul, who covers Gaza, join host Sarah Holder to discuss the details of the ceasefire agreement between Israel and Hamas and what lies ahead for Israel, Gaza and the region. Listen on iHeart, Apple Podcasts and Spotify.

Chart of the Day

The value of a typical home was below its peak in close to half of the 100 largest housing markets in the US last month. Some of the decline is due to the fact that home sales slow in winter months. But according to the Zillow data, the 10 markets with the largest price declines — areas where they are down at least $25,000 below peaks — the high point for prices was hit around two-and-a-half years ago. Austin had the biggest decline, down about $105,000 in December from the June 2022 level. The next biggest price declines were in San Francisco, and Boise, Idaho, where prices are down by $92,000 and $45,000, respectively from their peak levels (both June 2022). — Alex Tanzi

What’s Next

Housing starts for December will be reported tomorrow.

Trump will hold a pre-inaugural rally Sunday at the Capital One Arena in Washington.

Inauguration day is Monday.

Existing home sales in December will be released Jan. 24.

The University of Michigan’s final consumer sentiment gauge for January is released on Jan. 24.

Giant pandas Bao Li and Qing Bao make their public debut Jan. 24 at the National Zoo in Washington.

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