Monday, March 29, 2021

Chuck Schumer’s 51-vote gambit

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POLITICO Playbook

By Ryan Lizza, Eugene Daniels and Tara Palmeri

Presented by Facebook

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DRIVING THE DAY

BREAKING OVERNIGHT — EVER GONE? … "Aided by Moon and Tide, Giant Ship Is Partially Refloated," NYT

SPOTTED: MIKE and KAREN PENCE car shopping at Ourisman Honda in Tysons Corner.

PLAYBOOK LIVE: RYAN will interview White House chief of staff RON KLAIN on Thursday at 9 a.m. Register here

SCHUMER PREPARES FOR RECONCILIATION PART II — AND III: If you know one thing about the arcane subject of budget reconciliation, it's that it can be used to pass legislation through the Senate with just 51 votes rather than the 60 it takes to overcome a filibuster.

If you know two things, it's the simple majority rule and that reconciliation can be used only once every fiscal year.

Congress didn't pass a budget resolution last year, so Democrats used reconciliation left over from fiscal year 2021 to pass President JOE BIDEN'S $1.9 trillion American Rescue Plan. That means they still have the fiscal 2022 reconciliation bill left as a vehicle for portions of Biden's infrastructure, tax, climate and social welfare agenda.

But what if, buried in the rules of the Congressional Budget Act of 1974, there were a magical parliamentary trick that Democrats could use to unlock a third reconciliation bill this year?

Senate Majority Leader CHUCK SCHUMER believes he has found it. It's called Section 304, and you're about to start hearing about it a lot.

This section of the law that governs the congressional budgeting process essentially says that Congress may revisit and amend an already-passed budget resolution, like the one used to pass the Covid relief package. Or at least that's what Schumer aides are arguing.

"Recently, top policy aides to Majority Leader Schumer made the argument to the Senate Parliamentarian that Section 304 allows for at least one additional set of reconciliation bills related to revenue, spending and the public debt to be considered for Fiscal Year 2021," a Schumer aide previewing the strategy told us Sunday night.

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While Democrats haven't made a final decision on the legislative strategy, there is deep skepticism in both the White House and among Senate Democrats that any 60-vote bill on any significant issue is possible this year. It was already conventional wisdom that Biden is likely to be able to pass two reconciliation bills and almost nothing else. Now, Schumer may try to squeeze a third one out of the system. His office tells us that Section 304 has never been used before.

If he goes forward with the plan, the Senate parliamentarian will once again be the most powerful person in Washington, just as she was over the debate about whether the minimum wage was eligible for inclusion in the last reconciliation bill.

It goes without saying that this is a bizarre way to govern. Nobody would design a system like this, where to pass even popular legislation senators seek to game a rickety budgeting process and the most important Hill staffers are now the experts on these arcane rules devised in 1974 for the purpose of deficit reduction.

But as long as the filibuster remains, senators will continue to try to push the boundaries of what can be accomplished through reconciliation.

Judge for yourself (or good luck trying). Here's the fine print of Section 304: "At any time after the concurrent resolution on the budget for a fiscal year has been agreed to pursuant to section 301, and before the end of such fiscal year, the two Houses may adopt a concurrent resolution on the budget which revises or reaffirms the concurrent resolution on the budget for such fiscal year most recently agreed to."

Good Monday morning. What should Lizza ask Klain on Thursday morning? Got a news tip? A document to share? Drop us a line: Rachael Bade, Eugene Daniels, Ryan Lizza, Tara Palmeri.

FIRST IN PLAYBOOK — In a letter to Speaker NANCY PELOSI and House Minority Leader KEVIN MCCARTHY this morning, the 58-member House Problem Solvers Caucus calls for changes to allow for more input from rank-and-file members in the legislative process. Specifically, they ask the leaders to move to "regular order" — working through the committee process, as opposed to taking bills straight to the floor — and to allow more amendments to legislation. The members also urge more "bipartisan support and solutions" to get legislation signed by the president. The news release with letter

 

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BIDEN'S MONDAY — The president and VP KAMALA HARRIS will receive the President's Daily Brief at 9:50 a.m. and a Covid-19 briefing at 1:30 p.m. Biden will deliver remarks on the pandemic response and vaccinations at 2:10 p.m. in the South Court Auditorium, with Harris attending.

— The White House Covid-19 response team and public health officials will brief at 11 a.m. Press secretary JEN PSAKI will brief at 12:30 p.m.

THE HOUSE will meet in a pro forma session at 10:30 a.m. THE SENATE will meet in a pro forma session at 11 a.m.

 

JOIN THE CONVERSATION, SUBSCRIBE TO "THE RECAST" Power dynamics are shifting in Washington, and more people are demanding a seat at the table, insisting that all politics is personal and not all policy is equitable. "The Recast" is a new twice-weekly newsletter that breaks down how race and identity are recasting politics, policy and power in America. Get fresh insights, scoops and dispatches on this crucial intersection from across the country and hear from new voices that challenge business as usual. Don't miss out on our latest newsletter, SUBSCRIBE NOW. Thank you to our sponsor, Intel.

 
 
PLAYBOOK READS

A visitor walks past a blooming Yoshino cherry tree on the edge of the Tidal Basin on a rainy Sunday, March 28, 2021, in Washington.

PHOTO OF THE DAY: The cherry trees are blooming, even during a rainstorm, on the edge of the Tidal Basin on Sunday. | Carolyn Kaster/AP Photo

THE WHITE HOUSE

FROM 30,000 FEET — "Path from Clinton to Biden takes U-turn on debt, trade, more," AP: "President Joe Biden is dealing with harsh 21st century realities and his approach has been the exact opposite: Borrow to spur growth, offer government aid without mandating work and bring global supply chains back to the United States.

"This change in Democratic policy reflects the unique crises caused by the pandemic, as well as decades-old trends such as the rise of economic inequality, the downward slope of interest rates that made borrowing easier and globalization's pitfalls as factories departed the Midwest. White House aides are comparing the scope of Biden's policy ambitions to Franklin Delano Roosevelt's after the Great Depression."

THE PERILS OF BEING VP — "Vice presidents' policy projects come with political risks," AP: "For decades, the job of a vice president was to try to stay relevant, to avoid being viewed, in the words of one occupant of the post, as 'standby equipment.' But in recent administrations, the seconds-in-command have increasingly been deputized with special policy assignments that add some weight — and political risk — to the job.

"Harris' team has clarified that the vice president does not own all of immigration policy. She will be focused on the diplomatic side, working with Guatemala, El Salvador and Honduras to try to stop the flow of migrants from those countries, and not on the difficult task of deciding who is let into the U.S., where they are housed and what to do with the children who arrive without their parents. … Still, Harris' project is central to Biden's argument that he'll succeed in restoring American influence and credibility abroad and making the immigration process more humane."

THE PRESIDENT'S PITCHMAN — "Buttigieg has a bridge to sell you," by Christopher Cadelago, Sam Mintz and Tanya Snyder: "Buttigieg may be the youngest of President Joe Biden's Cabinet secretaries and the one with the most on-the-job learning to do. But he also comes with the most prominent reputation — a small-town mayor with big ideas and even bigger ambitions; the type of person who plunges so deep into new subjects that he might spend a casual evening sifting through a digital library on transportation and actually enjoy it.

"With the White House's massive infrastructure bill set for its formal unveiling, he and his boss are looking to turn that reputation into a political asset. They want to make him one of the package's chief pitchmen."

CONGRESS

THE DEMOCRATS' WORKER BEES — "How 2 Legislative Tacticians Scored Big Wins on Child Poverty in the Stimulus," NYT: "[Rep. Rosa] DeLauro, 78, the colorful daughter of Italian immigrants who settled in New Haven, Conn., and [Sen. Patty] Murray, 70, the quiet, self-described 'mom in tennis shoes' who worked in her father's five-and-dime store outside Seattle, had labored for decades, sometimes fruitlessly, on child poverty, education and health care issues. So when Mr. Biden came into office promising a sweeping federal rescue initiative, they already had proposals on their shelves and a keen sense of what it would take to get them done.

"They worked the phones with White House officials and haggled with their colleagues to help usher through what is regarded as the most aggressive federal intervention to help impoverished children since the New Deal."

DIFI'S NEW RECORD — "Dianne Feinstein becomes California's longest-serving U.S. senator," L.A. Times: "Feinstein [who's 87] has been in office for 10,372 days, breaking the record set by Hiram Johnson, a former governor who took office in the Senate in March 1917 and served until his death in August 1945."

JOHN LEWIS' SUCCESSOR — "Nikema Williams blazes her own trail in the footsteps of history," CNN: "Williams is not only the first Black woman to chair the Georgia Democratic Party, she is also the first Black woman to represent Georgia's 5th Congressional District — the seat held by civil rights icon John Lewis until his death last summer.

"Lewis was Williams' mentor, friend and shopping buddy (they hit the sale rack at Dillard's in Atlanta as often as they could). She even met her husband, Leslie Small, who had worked for the civil right icon, thanks to Lewis sending him on an errand to Hillary Clinton's Georgia headquarters in 2008 where Williams was working. Adorning the wall behind her congressional desk is a mural made by a constituent with pictures of her and Lewis."

POLICY CORNER

NO END SOON TO THE SURGE — "Family groups crossing border in soaring numbers point to next phase of crisis," WaPo: "The Biden administration's attention along the Mexico border has been consumed for the past several weeks by the record numbers of migrant teenagers and children crossing into the United States without their parents, at a rate that far exceeds the government's ability to care for them.

"But as they race to add shelter capacity for these minors, Department of Homeland Security officials are privately warning about what they see as the next phase of a migration surge that could be the largest in two decades, driven by a much greater number of families. DHS expects approximately 500,000 to 800,000 migrants to arrive as part of a family group during the 2021 fiscal year that ends in September, a quantity that would equal or exceed the record numbers who entered in 2019."

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PANDEMIC

WAPO: "'Vaccine passports' are on the way, but developing them won't be easy": "The passports are expected to be free and available through applications for smartphones, which could display a scannable code similar to an airline boarding pass. Americans without smartphone access should be able to print out the passports, developers have said. …

"U.S. officials say they are grappling with an array of challenges , including data privacy and health-care equity. They want to make sure all Americans will be able to get credentials that prove they have been vaccinated, but also want to set up systems that are not easily hacked or passports that cannot be counterfeited, given that forgeries are already starting to appear."

POLITICS ROUNDUP

CONSIDERING ALL OPTIONS — "Redistricting disarray nudges House Democrats toward statewide bids," by Sarah Ferris, Ally Mutnick and James Arkin: "So far, a half-dozen Democrats who could face some of the toughest redistricting prospects have floated bids for Senate or governor — all in states where Republicans have the ability to doom their House careers with new maps next year.

"This year's once-a-decade redraw of congressional maps is made far more complicated by coronavirus-related delays in the process. And that uncertainty — on top of a 2022 election that could plunge Democrats back into the minority — is leading some lawmakers to seriously consider political options beyond the House."

2021 WATCH — "GOP candidate from New Jersey accused of pandering after he transforms into cowboy for Texas run," WaPo: "In his first ad as a candidate for Texas's 6th Congressional District, 'Big Dan' Rodimer speaks in a gravelly, indistinct Southern accent, throws jabs at Democratic policies and compares House Speaker Nancy Pelosi (D-Calif.) to a bull. The bull he's supposedly riding in the ad. But the New Jersey native didn't have the twang last year when he ran for Congress in Nevada.

"Rodimer has remade himself again on a road he hopes will lead to Congress, though his latest persona has earned him ridicule, even from fellow Republicans." Ally Mutnick's write-up on his run from early March

TRUMP CARDS

ON THE HUNT — "The Unlikely Team of Prosecutors Hunting Trump in Georgia," The Daily Beast: "A sheriff's deputy who went to law school but remained a cop for another two decades. A prosecutor best known for tackling juvenile offenders. And the guy who literally wrote the book on racketeering cases against mafia goons. This is the team Fulton County District Attorney Fani Willis is assembling to investigate Donald Trump—to go after his advisers and their attempts to manipulate election results in Georgia.

"In interviews with Willis, her staff, five former members of the team, and several people who interacted with them, The Daily Beast has learned there are now two grand juries underway in Fulton County, and jurors in these secret proceedings will soon be asked to issue subpoenas demanding documents and recordings related to the Trump investigation."

WEDDING CRASHER — "Donald Trump Mar-a-Lago Wedding Speech … Enough About The Couple, Let's Talk About Me," TMZ: "Before everyone knew it, he was launching into politics … singing the same ol' song about false claims the election was rigged. Watch for yourself -- DT rails on the Biden administration over what he considers shortcomings in the early months of his presidency, including foreign policy/deals with China and Iran … plus, Trump goes in on the border situation which is now drawing national attention." With video

VALLEY TALK

YIKES … "Amazon started a Twitter war because Jeff Bezos was pissed," Vox: "Amazon CEO Jeff Bezos expressed dissatisfaction in recent weeks that company officials weren't more aggressive in how they pushed back against criticisms of the company that he and other leaders deem inaccurate or misleading. What followed was a series of snarky and aggressive tweets that ended up fueling their own media cycles.

"The timing was likely not coincidental. Bezos and other Amazon leaders are on edge as the company is facing the largest union election in its history at its Bessemer, Alabama warehouse. Election results will be tallied early this week, and Amazon officials understand that if a majority of the employee voters vote to unionize, it could set off a chain reaction at other facilities, with the potential to force the e-commerce giant to overhaul how it manages its hundreds of thousands of front-line US workers."

DESSERT

This one has nothing to do with politics, but it's an incredible story: "His Plane Crashed in the Amazon. Then Came the Hard Part," NYT: "A Brazilian pilot working for wildcat miners escaped death when his plane went down in a remote area. He walked through the jungle for 36 days before being rescued."

 

THE LATEST FROM INSIDE THE WEST WING : A lot happened in the first two months of the Biden presidency. From a growing crisis at the border to increased mass shootings across the country while navigating the pandemic and ongoing economic challenges. Add Transition Playbook to your daily reads to find out what actions are on the table and the internal state of play inside the West Wing and across the administration. Track the people, policies and emerging power centers of the Biden administration. Don't miss out. Subscribe today.

 
 
PLAYBOOKERS

FIRST IN PLAYBOOK — Hunter Walker, White House correspondent for Yahoo News, is leaving Yahoo after five years and teaming up with Luppe B. Luppen (aka Twitter's @nycsouthpaw) to write a book about progressive politics, tentatively titled "Afterburn." The Norton book is scheduled for mid-2023. Molly Atlas of ICM negotiated the deal.

— Michael Petrucelli has joined Rational 360 as president of the firm's government solutions division. He is a DHS, State Department, FCC and Export-Import Bank alum.

TRANSITIONS — Hunter Lovell is now press secretary in Rep. Steve Scalise's (R-La.) personal office. He previously was press assistant for Sen. Bill Cassidy (R-La.). … Courtney Cochran and Elana Ross are joining House Assistant Speaker Katherine Clark's (D-Mass.) office. Cochran will be director of strategy planning and previously was deputy COS for Rep. Bonnie Watson Coleman (D-N.J.). Ross will be deputy comms director and previously was press secretary for Planned Parenthood President and CEO Alexis McGill Johnson. …

Kiera O'Brien is joining Sen. Dan Sullivan's (R-Alaska) office as correspondence manager focused on energy and climate policy. She previously was founder and president of Young Conservatives for Carbon Dividends. … Cherie Wilson is now managing director on Delta Air Lines' government affairs team. She previously was a director of federal affairs at General Motors. … Adam Kovacevich has launched Chamber of Progress. He most recently led government relations for Lime and is a Google alum. More from Bloomberg

ENGAGED — Justin Peligri, live events producer at The Atlantic and a "Meet the Press" alum, and Cory Combs, senior comms manager with Issue One and a Sunshine Sachs alum, got engaged at sunset Friday on Tilghman Island in Maryland. Instapic

WELCOME TO THE WORLD — Michael Wear, founder of Public Square Strategies LLC, and Melissa Wear, principal consultant at Public Square Strategies, who also both produce the Reclaiming Hope newsletter, welcomed Ilaria Ciro Wear on Tuesday. Pic

HAPPY BIRTHDAY: Sen. Catherine Cortez Masto (D-Nev.) (57) … Rep. Ted Lieu (D-Calif.) (52) … Robert Gibbs (5-0) … Emily Cain of EMILY's List … Sam BrownRoger SimonPeter Velz (32) … Peter Cherukuri (45) … Joe FoxLara Logan (5-0) … Casey Wian … AP's Steve Peoples … Shell's Eric Pelofsky (5-0) Emma Eatman (24) … WaPo's Paul Farhi, Nancy Murphy and Janay Kingsberry … former Sen. Larry Pressler (R-S.D.) (79) … POLITICO's Melanie Zanona and Julie Kennedy Nathen HuangNick Buis (37) … Morning Consult's Matthew Bracken … DNC's David Bergstein Kate ThomasJanessa Gans WilderJay KenworthyEmily Jashinsky … Ghanaian President Nana Akufo-Addo (77) … Nouriel Roubini ... David E. Shaw (7-0) ... Brittany TrotterMarissa Padilla of Global Strategy Group … Scott MasonCarina ArmentaLiz JaffWyn HornbuckleKathryn HollisterPerry Farrell

Send Playbookers tips to playbook@politico.com. Playbook couldn't happen without our editor Mike Zapler and producers Allie Bice, Eli Okun and Garrett Ross.

 

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