Axios Sneak Peek: Scoop — Yellen's ask for Big Business ... Schumer's Israel vise

Plus: DOJ signals scrutiny of popular fundraising gimmick | Monday, May 17, 2021

Open in app View in browser   Presented By Emergent BioSolutions   Axios Sneak Peek By Alayna Treene, Hans Nichols and Kadia Goba ·May 17, 2021 Welcome back to Sneak. Both ends of Pennsylvania Avenue ratcheted up the pressure to halt the violence in the Middle East. ⚡ Situational awareness: The Office of the Attending Physician told returning House members they still must wear masks in the Chamber and committee meeting rooms — a potential flashpoint for their critics. Today's newsletter — edited by Glen Johnson — is 1,069 words, a 4-minute read.     1 big thing: Scoop — Yellen wants business to help foot infrastructure bill Treasury Secretary Janet Yellen. Photo: Alex Wong/Getty Images   Treasury Secretary Janet Yellen is heading into the belly of the beast tomorrow and asking the business community to support President Biden's $2.3 trillion infrastructure plan during a speech to the U.S. Chamber of Commerce, Axios' Hans Nichols has learned. Why it matters: By trying to persuade a skeptical and targeted audience, Yellen is signaling the president's commitment to raising corporate taxes to pay for his plan. Republican senators, critical to a potential bipartisan deal, oppose any corporate tax increase. "We are confident that the investments and tax proposals in the (American) Jobs Plan, taken as a package, will enhance the net profitability of our corporations and improve their global competitiveness," Yellen plans to say, according to excerpts from her speech obtained by Axios. "We hope that business leaders will see it this way and support the Jobs Plan." The big picture: The administration is working to build support for the plan both in and out of Washington as it awaits the second counterproposal from Senate Republicans. Their initial offer of $568 billion could climb as high as $800 billion. The other side: Congressional Republicans have declared President Trump's 2017 corporate and individual tax cuts are off-limits. The Business Roundtable prefers a mix of deficit spending, repurposed money from Biden's $1.9 trillion COVID relief bill and user fees to fund infrastructure projects. Between the lines: Yellen's speech to the Chamber will take an economic history tour. The secretary will argue previous periods of economic uncertainty were met with government investments in infrastructure, education and research and development. She'll note legislation that was controversial at the time spawned institutions now part of everyday American life, including the Federal Reserve, Federal Deposit Insurance Corporation and Social Security Administration. "It is the time to recommit our government to playing a more active and smarter role in the economy," she'll say. "We're proposing smart investments — to make our economy more competitive and sustainable, to provide opportunities for all families and workers and to make our tax system fairer." Keep reading.     2. Schumer's Israel vise Sen. Chuck Schumer addresses the American Israel Public Affairs Committee in March 2014. Photo: Nicholas Kamm/AFP via Getty Images   Senate Majority Leader Chuck Schumer's longtime support for Israel puts him on a collision course with the progressive wing of his party as the conflict between Israel and Hamas worsens, Axios' Alayna Treene writes. Why it matters: This is the toughest political position the New York Democrat has been in since becoming majority leader. The fighting in the Middle East is dividing his party — and creating a clear rift among its different wings. Deepening the challenge: Schumer is up for re-election next year and one of his potential opponents — Rep. Alexandria Ocasio-Cortez (D-N.Y.) — is one of the most vocal progressive critics of the actions taken by Israel's leader, Prime Minister Benjamin Netanyahu. While President Biden and House Speaker Nancy Pelosi are similarly boxed in after ascending to power in a pro-Israel environment, Schumer faces this problem most acutely. The backdrop: Schumer, the first Jewish Senate majority leader, rose to prominence in part thanks to a career in New York politics built on a foundation of pro-Israel credentials. He frequently bucked President Obama on Middle East policy, including opposing the 2015 Iran nuclear deal. That put him at odds with the majority of his party but aligned him with Israel. He later criticized President Trump for leaving the deal and said a new agreement should be negotiated. Flash-forward to the current crisis. So far, Schumer has largely been silent even as other historically fierce defenders of Israel, such as Sen. Bob Menendez (D-N.J.), have spoken up. Menendez, chairman of the Senate Foreign Relations Committee, shocked his colleagues over the weekend when he said he was "deeply troubled" by Netanyahu's military actions. The statement turned the heads of Israel's top politicians, Axios' Barak Ravid said. Sen. Jon Ossoff (D-Ga.), who's Jewish, led a group of 29 Democratic senators in calling for a ceasefire between Israel and Hamas. Sens. Chris Murphy (D-Conn.) and Todd Young (R-Ind.) — the top members of the Foreign Relations' Middle East subcommittee — issued the first bipartisan statement in support of a ceasefire. Schumer told reporters Monday he agrees with the Murphy-Young statement and wants to see a ceasefire "reached quickly." He did not discuss the issue during his floor remarks — one of the most prominent stages he commands as majority leader. Keep reading.     3. By the numbers: Calling congressional attendance Data: Quorum via Congress.gov; Table: Danielle Alberti/Axios The top five freshman members of Congress who've missed the most votes this year are all House Republicans, according to data collected by Quorum and reviewed by Alayna. By the numbers: Rep. Madison Cawthorn (R-N.C.) led the pack, missing 16.2% of votes. Cawthorn ranks sixth overall among all members — both House and Senate — in terms of missed votes. The House Democratic freshman who missed the most votes is Rep. Jamaal Bowman (D-N.Y.), No. 14 on the list, at 2.82%. Sen. Cynthia Lummis (R-Wyo.), No. 12, missed the most votes in the Senate as a freshman, at 3.14%. Details: Quorum collected its data from Congress.gov, which lists each member's vote count. The vote tallies include members who voted by proxy during the pandemic.     A message from Emergent BioSolutions How Emergent BioSolutions helps to protect public health     At Emergent BioSolutions, we make things you never thought you'd need. A treatment to counteract an opioid overdose. Protection from anthrax, smallpox and botulism. And now, in the fight against COVID-19. Emergent has an unwavering commitment to helping protect public health.     4. DOJ signals scrutiny of popular fundraising gimmick Illustration: Shoshana Gordon/Axios   A little-noticed line in a recent criminal filing suggests federal prosecutors consider a popular political fundraising tactic to be legally questionable, Axios' Lachlan Markay reports. Why it matters: Fundraisers often boast of "5x" or other contribution matches to coax small-d0llar donations. The Justice Department indicated in a court filing today this could amount to "material misrepresentations" if, as critics often contend, there's no evidence the match ever occurs. The tactic has become more prominent in recent years. Both parties have used it, but Donald Trump's re-election campaign and its allies at the Republican National Committee exploited it to extreme degrees last year — promising up to 900% matches. A campaign that enlisted donors to put up five times the funds raised through one such matching offer would almost certainly have induced those donors to exceed the federal limits on their own campaign contributions. What's happening: DOJ's comment was just a brief aside in a Statement of Offense. It accompanied a guilty plea Monday by the operator of a number of groups that raked in small-dollar donations last year with fraudulent fundraising appeals. One of the groups, Keep America Great Committee, sent fundraising emails that "contained material misrepresentations including promising '5x' matching of any donation to KAGC," DOJ wrote. It was a throwaway line in a 12-page legal filing, but one that could have major consequences for the political fundraising industry. What they're saying: Political compliance attorney Brett Kappel called DOJ's comments about KAGC fundraising practices "very significant." "This prosecution puts fundraisers on notice that the continued use of this very popular fundraising pitch will be treated as a possible violation of the mail and wire fraud statutes," Kappel wrote. Keep reading.     5. Pic du jour Photo: Anna Moneymaker/Getty Images   A greeter braces against rotor wash as Marine One lands on the Ellipse after President Biden made an extended weekend trip to Delaware.     A message from Emergent BioSolutions How Emergent BioSolutions helps to protect public health     At Emergent BioSolutions, we make things you never thought you'd need. A treatment to counteract an opioid overdose. Protection from anthrax, smallpox and botulism. And now, in the fight against COVID-19. Emergent has an unwavering commitment to helping protect public health.   👏🏽 Thanks for reading Sneak. Please let your family, friends and colleagues know they can sign up for email delivery through this link.   Axios thanks our partners for supporting our newsletters. Sponsorship has no influence on editorial content. Axios, 3100 Clarendon B‌lvd, Suite 1300, Arlington VA 22201   You received this email because you signed up for newsletters from Axios. 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