At Arkham Asylum, Jeremiah Arkham learns that Senator Halivan was strangled in Washington DC. Hope for getting much needed federal aid is very low. The asylum now faces a shortage on supplies and staff.
Joker is told off by Wax Man at breakfast and just moves on without incident. Later that day, Dr. Arkham and his assistant Dave are giving the inmates their medication. With the dire situation known to them, some inmates have grown restless putting even more pressure on Dr. Arkham.
Meanwhile in the Batcave, Batman is exhausted and feeling the pressure as well. Congressional hearings on the future of the city are about to start in Washington DC.
Back at Arkham, the inmates are let out into the garden for some RnR. The Joker causes tricks Killer Croc into attacking Pinhead which causes a distraction. He sneaks into the med room and edits Killer Croc's medication. As the fight is subdued, the inmates are returned to their cells. The Joker sneaks up to Dr. Arkham and proposes gladiatorial combat to solve the asylum's problems.