Major Update: Fallout Explodes After Epstein Files Drop as Clintons Demand to Testify Publicly, People Lose Their Jobs, and World Leaders Issue Apologies

We woke up to major developments this morning, and it’s no exaggeration to say the dam is breaking after the release of the Epstein files.

The UK prime minister addressed the nation, issuing a direct apology to survivors. One of the most powerful lawyers on the planet has been forced to step down as chairman of one of the world’s most influential law firms. And on Capitol Hill, the Clintons have called Republicans’ bluff, formally demanding to testify publicly and under oath.

At the same time, the U.S. economy delivered brutal layoff numbers, and Trump is facing growing backlash for minimizing the killings of Alex Pretti and Renee Good, comments that are now being widely ridiculed and condemned.

Behind the scenes, I’ve been pushing through what feels like more than 100,000 Epstein-related files, still digging, still caffeinated, and still bringing you everything else that matters as this story detonates in real time.

To everyone who’s reached out with messages of support: thank you. Truly. It means more than I can say. If you want to support this work, help it reach more people, and keep the reporting (and caffeine) flowing, please consider subscribing or gifting a subscription.

Here’s the news:

• British Prime Minister Kier Starmer has spent the morning giving an address to the nation apologizing for the actions of Peter Mandelson as it relates to Jeffre Epstein. Calls for Starmer’s resignation are growing as he admitted to having been warned, in a security briefing, about the contacts prior to appointing Mandelson Ambassador.

• The Clintons demand a public hearing on the Epstein files for the world to see their testimony.

• Donald Trump said it bothers him that investigators are “going after” Bill Clinton, adding that he likes Clinton on a personal level and explaining that Clinton “got me” and “understood me,” framing his defense in terms of personal rapport rather than policy or conduct.

• Brad Karp, longtime chairman of Paul, Weiss, Rifkind, Wharton & Garrison LLP, resigned abruptly after newly released Justice Department files revealed previously undisclosed email exchanges with Jeffrey Epstein—including friendly messages from 2015 thanking Epstein for a “once in a lifetime” evening and follow-up correspondence as late as 2019 (the year Epstein died); while Karp said the attention had become a “distraction” to the firm, he denied any wrongdoing, will remain at Paul Weiss focusing on client work, and was replaced as chairman by Scott Barshay.

• More Epstein files outline close contacts between Elon Musk and Epstein:

• More files concerning Donald Trump:

• Another one where Epstein discusses being in Palm Beach with the “Trump boys”

• Another one where Epstein discusses calling Trump about “Vrginina”

• Donald Trump dismissed criticism of ICE, saying he “hates even talking about it” and arguing that isolated incidents (“2 people out of tens of thousands”) generate disproportionate bad publicity; when the host noted the deaths involved two Americans, Trump deflected by shifting to border enforcement claims, vaguely citing toughness on “the waters” and saying authorities “knock out boats,” prompting confusion from the journalist interviewing him:

• Trump further claimed to have already “won” his $10 billion lawsuit against the IRS and the Treasury Department, suggesting he is going to decide how much he is owed and give the money to “charity.”

• U.S. layoffs surged sharply in January 2026, with employers announcing 108,435 job cuts, the highest January total since 2009, according to Challenger, Gray & Christmas; the figure was up 118% year over year and 205% from December, while planned hiring fell to 5,306 jobs, also the lowest January on record, signaling growing employer pessimism about the 2026 outlook despite relatively low official jobless claims, with major cuts announced by companies such as Amazon, UPS, and Dow Inc.

• Donald Trump, speaking at the National Prayer Breakfast, said he does not understand how a person of faith could vote for Democrats, drawing audible groans from the audience as he suggested Democrats present “don’t give us their vote” and accused them of cheating, injecting overt partisan criticism into the traditionally bipartisan religious event.

• House and Senate Democrats, led by Chuck Schumer and Hakeem Jeffries, warned they will block a full-year funding bill for the Department of Homeland Security unless Republicans agree to sweeping reforms to ICE ahead of a looming funding deadline; their demands include ending roving patrols, requiring judicial warrants, mandating body cameras and independent oversight, restricting mask use, barring detention or deportation of U.S. citizens, and enforcing use-of-force and anti–racial profiling rules.

• Donald Trump said in an NBC News interview that the Federal Reserve is “in theory” independent but made clear his Fed chair pick, Kevin Warsh, would not have been nominated unless he supported cutting interest rates, arguing rates are “way too high” and claiming he understands the economy better than most; Trump also reiterated criticism of current chair Jerome Powell, while downplaying concerns about political pressure on the central bank.

• Donald Trump said he will stay out of the regulatory fight over Netflix’s proposed acquisition of Warner Bros. Discovery, reversing earlier comments that he might personally weigh in; speaking to NBC News, Trump said the Justice Department will handle the approval process despite the high-profile bidding battle with Paramount Skydance, a deal that could significantly reshape the media industry.

• Savannah Guthrie, a co-anchor of TODAY, made an emotional public plea with her siblings for the safe return of her 84-year-old mother, Nancy Guthrie, who was reported missing from her home near Tucson, Arizona, and may have been abducted; authorities, including the FBI, are investigating, and Donald Trump said he directed federal law enforcement to assist in the search.

• Kamala Harris has rebooted her former KamalaHQ social media presence as “Headquarters,” repurposing accounts with over 1 million followers on X and more than 5 million on TikTok into what she describes—alongside People for the American Way—as an online organizing project aimed at next-generation political campaigning.

• The Washington Post announced mass layoffs affecting roughly one-third of its workforce, triggering backlash from employees who said morale had been “on edge” for weeks amid rumors of cuts; the paper will also scale back sports and foreign coverage, a move former executive editor Marty Baron called “one of the darkest days” in the Post’s history, while current editor in chief Matt Murray told staff the outlet is undergoing a “strategic reset” to survive a crowded media market, acknowledging struggles to reach customers under ownership of Jeff Bezos.

• The Trump administration says it plans to form a critical minerals trading bloc with allied countries to counter China’s dominance, using tariffs and coordinated trade policy to secure supplies of minerals essential for electric vehicles, advanced weapons systems, and other high-tech manufacturing.

• Nayib Bukele, a close ally of the Trump administration, said ahead of the president’s address today that he has cooperated with the U.S. to accept deportation flights of alleged criminal migrants and detain them in CECOT; Bukele—who has embraced the label “world’s coolest dictator” and faces criticism for authoritarian tactics—called gangs “satanic,” claimed some operate in the U.S., and framed El Salvador’s crackdown as a model he believes could be replicated globally.

• The Guardian has confirmed that Michigan filed a first-of-its-kind lawsuit accusing major fossil fuel companies—BP, Shell, Chevron, and Exxon Mobil—along with the American Petroleum Institute, of acting as a “cartel” to suppress renewable energy and electric vehicles, mislead the public about climate risks, and drive up energy costs; Attorney General Dana Nessel says the alleged conduct violates antitrust laws, while the companies deny wrongdoing and argue climate policy should be set by Congress, not courts.

• A Democratic report on the DC National Guard deployment ordered by Donald Trump found the mission is projected to cost $602 million annually, exceeding the $599 million 2026 budget of the Metropolitan Police Department, while warning the operation blurs the line between military and civilian law enforcement.

• Donald Trump is expected to launch TrumpRx, a direct-to-consumer prescription drug platform that would let cash-paying patients buy certain medications directly from drugmakers at discounted prices negotiated by the administration; while Trump says deals with at least 16 pharmaceutical companies could lower health costs—especially for drugs like obesity treatments not widely covered by insurance—key details on pricing and availability remain unclear, and experts caution some patients may still pay less through insurance.

See you soon.

— Aaron