Wednesday, May 26, 2021

‘Cloud of nerves’ hovers over Trump land after grand jury report

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POLITICO Playbook

By Rachael Bade, Tara Palmeri, Eugene Daniels and Ryan Lizza

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DRIVING THE DAY

BREAKING OVERNIGHT — IN MEMORIAM: Former Sen. JOHN WARNER (R-Va.) died Tuesday evening at 94 of heart failure, with his wife Jeanne and daughter Virginia at his side, according to an email sent out overnight to Warner alumni and family by his longtime chief of staff Susan Magill. The World War II and Korean War veteran served three decades in the Senate after a stint as secretary of the Navy. We'll have more tributes to the senator in Playbook PM. Read the letter he wrote to Virginians when he retired

A 'CLOUD OF NERVES' HANGS OVER TRUMP: After WaPo reported Tuesday night that Manhattan DA CY VANCE has convened a special grand jury to decide whether to indict former President DONALD TRUMP or execs at his company, we checked in with Trump world to get their take on the latest news.

"There's definitely a cloud of nerves in the air," one adviser said, adding that this feels different than the typical barrage of legal issues surrounding Trump because there is pressure on Trump Org CFO ALLEN WEISSELBERG to flip. "I think the Weisselberg involvement and the wild card of that makes the particular situation more real, because there's no sort of fluff and made-up fictional circumstances around the guy. … The fact that they're dealing with a numbers guy who just has plain details makes people more nervous. This is not a MICHAEL COHEN situation."

As for Trump, his first reaction to the grand jury news was his default — it's a political witch hunt. But how can it be a political witch hunt if he's not in the game anymore, you ask? Simple: Float another run for president. "Interesting that today a poll came out indicating I'm far in the lead for the Republican Presidential Primary and the General Election in 2024," he said in a statement responding to the news. His aides say his interest in running isn't just a defense tactic — "he's missing being president terribly," one said. Others have said that he gets angry when questioned if he's really serious.

Meanwhile, POLITICO legal affairs ace Josh Gerstein writes in about the significance of the Trump grand jury: "A source close to one witness in the probe says prosecutors have been methodically combing through evidence in informal interviews and were expected to move to take formal testimony soon.

"That Vance is using a grand jury to gather information about Trump and Trump Organization finances is nothing new. A legal fight over a grand jury subpoena for Trump's tax returns broke out back in 2019 and went all the way to the Supreme Court. Vance prevailed, finally winning copies of Trump's taxes this past February.

"But the new grand jury is expected to go beyond assembling records by hearing live testimony from various witnesses — which will give prosecutors an opportunity to present a narrative that could persuade jurors to return an indictment in the coming months. Coupled with [New York] Attorney General LETITIA JAMES' recent decision to team up with Vance and Vance's hiring of veteran mafia prosecutor MARK POMERANTZ, the move to a new grand jury suggests a steady progression towards criminal charges against some person or company in the Trump orbit."

Good Wednesday morning. Thanks for reading Playbook. Drop us a line: Rachael Bade, Eugene Daniels, Ryan Lizza, Tara Palmeri.

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DECODING THE INFRASTRUCTURE CONFUSION If you're at a loss for what to make of this week's infrastructure talks, we get it. They're dead. They're alive. They're near a deal. They're miles apart. Oh, and there's a new bipartisan group coming up with a Plan B!

We're here to help. Here's a guide to help parse what's actually going on:

ABOUT THAT $1 TRILLION GOP COUNTEROFFER — Yes, Sen. SHELLEY MOORE CAPITO'S (R-W.Va.) group of GOP senators are set to up their offer to around $1 trillion in infrastructure spending. CNN's Manu Raju, Phil Mattingly and Lauren Fox have a good scoop about why they chose that figure: because President JOE BIDEN himself told them he could accept a $1 trillion deal.

But here's the problem: How much of the $1 trillion is new spending, and how much of it will Dems pan as gimmicks and/or existing funds shifted from other accounts? We'll soon find out, and it should determine how real the GOP's latest counteroffer is.

There's another reason to be skeptical: Sen. MITT ROMNEY (R-Utah) dismissed the idea of a $1 trillion infrastructure deal just Tuesday. "That's unlikely," he told our Burgess Everett before making a plug about this other group of Republicans and Democrats negotiating on infrastructure on their own. If you can't get Romney, how do you get to a filibuster-proof majority?

AS FOR THAT OTHER GROUP — WaPo's Seung Min Kim and Tony Romm were first Tuesday with a story about another group of centrists — Romney, SUSAN COLLINS (R-Maine), ROB PORTMAN (R-Ohio) and JOE MANCHIN (D-W.Va.) — working on a totally separate infrastructure proposal that they'll release if Capito's talks with the White House unravel.

Our first reaction to this was: Is Capito getting benched? But after making some calls, it's clear she's still the main event and that few are taking this side group seriously, at least for now. (Capito would also likely be incorporated into this separate group if talks take off.) But it's worth keeping an eye on this group because it includes Manchin and Sen. KYRSTEN SINEMA (D-Ariz.), two unpredictable Democrats the White House has been watching closely.

Some view this as an attempt by centrists to signal that Biden can forget about his Memorial Day infrastructure deadline. While White House staff and Democratic leaders are eager to move on, this group of senators isn't done negotiating.

MANCHIN WANTS SOME LOVE — Leave it to Manchin to throw another curveball into all this. He said he sees no reason for the party to use reconciliation at this point: Bipartisan talks should continue until a deal is reached. (You can hear the groans from Democratic leaders.)

What about Sen. BERNIE SANDERS' (I-Vt.) move to start the reconciliation process? Manchin dared him to try: "If you think you got it, then go for it," he tells dissent-seeding Burgess, who has more.

WHAT THE OPTIMISTS SAY — If you want the sunny take on all this, here goes: Let's assume the GOP's counteroffer is only half real money — say, $500 billion. If the GOP also supports a new, bipartisan $300 billion transportation proposal , that puts both sides within striking distance of a $1 trillion deal. But even then, Democrats and Republicans are nowhere near consensus on how to pay for it all, and the left is running out of patience. Color us skeptical.

 

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BIDEN'S WEDNESDAY: The president will receive the President's Daily Brief at 9:50 a.m.

— VP KAMALA HARRIS will meet with a bipartisan group of congressional members to discuss infrastructure at 3:30 p.m. in the Vice President's Ceremonial Office.

— Principal deputy press secretary KARINE JEAN-PIERRE will brief at 12:30 p.m.

THE HOUSE is out. Testifying before Appropriations subcommittees today: DHS Secretary ALEJANDRO MAYORKAS at 10 a.m., CDC Director ROCHELLE WALENSKY at 10 a.m. and SEC Chair GARY GENSLER at 2 p.m. SBA Administrator ISABEL GUZMAN will testify before the Small Business Committee at 10 a.m. And actor NICK OFFERMAN will testify before an Energy and Commerce subcommittee at 11 a.m.

THE SENATE is in. Testifying before Appropriations subcommittees today: DNI AVRIL HAINES, CIA Director WILLIAM BURNS and NSA Director PAUL NAKASONE at 10 a.m., ANTHONY FAUCI and NIH Director FRANCIS COLLINS at 10 a.m., Commerce Secretary GINA RAIMONDO at 2 p.m., Mayorkas at 2 p.m. and USAID Administrator SAMANTHA POWER at 2:30 p.m. The Judiciary Committee will hold a hearing on DAVID CHIPMAN for ATF director and other nominations at 10 a.m. Guzman will testify before the Small Business Committee at 1:30 p.m.

 

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Secretary of State Antony Blinken and Israeli PM Benjamin Netanyahu

PHOTO OF THE DAY: Secretary of State Antony Blinken and Israeli PM Benjamin Netanyahu shake hands during a joint press conference Tuesday in Jerusalem. | Menahem Kahana/Pool photo via AP

AMERICA AND THE WORLD

AT LONG LAST — "Biden to name Tom Nides ambassador to Israel," AP: "[ TOM] NIDES is currently the managing director and vice chairman of Morgan Stanley. He previously served as deputy secretary of state for management and resources under HILLARY CLINTON from 2011 to 2013. The official, who spoke on the condition of anonymity to discuss the yet-to-be announced pick, said Nides has already been formally offered the position."

AFGHANISTAN ACCELERATED — "Pentagon Accelerates Withdrawal From Afghanistan," NYT: "United States troops and their NATO allies intend to be out of Afghanistan by early to mid-July, well ahead of President Biden's Sept. 11 withdrawal deadline, military officials said, in what has turned into an accelerated ending to America's longest war.

"The Pentagon still has not determined how it will combat terrorist threats like Al Qaeda from afar after American troops leave. Nor have top Defense Department officials secured agreement from allies about repositioning American troops in other nearby countries. And administration officials are still grappling with the thorny question of whether American warplanes — most likely armed Reaper drones — will provide air support to Afghan forces to help prevent the country's cities from falling to the Taliban."

BIDEN EXTENDS A HAND TO PALESTINIANS — "Blinken announces $110 million in new Gaza funding — now comes the hard part," by Ryan Heath: "The Biden administration's effort to keep Congress onside and Hamas at arms length — while battling donor fatigue among foreign governments — is already at risk of derailing crucial assistance. Secretary of State ANTONY BLINKEN announced $110 million in new economic assistance to Palestinians, during a visit to Ramallah, the headquarters of the Palestinian Authority, including $5.5 million in immediate relief to Gaza. ..

"U.N. humanitarian workers on the ground in Gaza told POLITICO that it will take weeks to know how much money is needed to repair damage inflicted on thousands of buildings during the May conflict, and that the hidden cost of the conflict is much higher than the physical toll."

WUHAN INVESTIGATION "Top U.S. health official calls for follow-up investigation into pandemic's origins," WaPo: "The United States' top health official called Tuesday for a swift follow-up investigation into the coronavirus's origins amid renewed questions about whether the virus jumped from an animal host into humans in a naturally occurring event or escaped from a lab in Wuhan, China.

"Health and Human Services Secretary XAVIER BECERRA told an annual ministerial meeting of the World Health Organization that international experts should be given 'the independence to fully assess the source of the virus and the early days of the outbreak.'"

CONGRESS

FILIBUSTER WATCH — "McConnell, the minority leader with 'veto' power," by Burgess Everett: "[T]he Kentucky Republican is nonetheless leveraging the existence of the filibuster into remarkable power over legislation. He's doing it through a subtle but unmistakable bet: that the Senate's 60-vote threshold for most bills is here to stay, and so too is his ability to shape or derail Democrats' priorities. …

"McConnell warned Republicans at a closed-door meeting on Tuesday that regardless of tweaks to the bill … approving the [Jan. 6] commission could hurt the party's midterm election message, according to attendees. … 'That is extremely frustrating and disturbing. I know he's an institutionalist. I would like to think he loves this institution,' Manchin said Tuesday. 'There's a time when you rise above. And I'm hoping this would be the time he would do that. What I'm hearing is, he hasn't.'"

READY OR NOT — "Schumer to force vote on Jan. 6 commission this week," by Marianne LeVine and Burgess Everett

COONS GETS THE TIMES TREATMENT — "Coons, Biden's Eyes and Ears in the Senate, Reaches for Bipartisanship," NYT: "To trail [Sen. CHRIS] COONS on Capitol Hill is to witness how he operates as an extra pair of eyes and ears for the Biden administration in Congress, a kind of consigliere trusted by both the president and the senators — many of them Republicans — whom Mr. Biden needs to succeed.

"It is a far less prestigious job than the one that Mr. Coons — who interned for Mr. Biden three decades ago, became his mentee on the New Castle County Council, campaigned for him in Iowa and now holds the seat that once belonged to him — initially sought in the Biden administration, where he had hoped to serve as secretary of state. But it can demand the same kind of shuttle diplomacy and high-stakes negotiation.

"On Tuesday, as the two parties went their separate ways for their weekly closed-door strategy sessions, Mr. Coons crossed enemy lines to be a guest at the Republican senators' lunch, where he was invited to give a briefing as chairman of the Ethics Committee."

FLASHBACK: "Biden's ambassador to the GOP," by Burgess Everett, Dec. 7, 2020

KINZINGER LETS IT RIP — In a POLITICO Live event Tuesday, EUGENE and RACHAEL sat down with Rep. ADAM KINZINGER (R-Ill.), who made news on two big fronts.

He called on leadership to kick Rep. MARJORIE TAYLOR GREENE (R-Ga.) out of the House GOP Conference after she compared mask requirements to the Holocaust. (Unlikely but notable.) More from Ben Leonard

He also said he wouldn't support current Minority Leader KEVIN MCCARTHY for speaker at this point. "This country deserves people that are going to do tough things and tell the truth," Kinzinger told us. Watch the full interview here

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POLITICS ROUNDUP

WORKING WITH NEWT — "Trump is starting to put together his own Contract with America. And he's teaming up with Newt," by Meridith McGraw: "With an eye toward winning back the House and Senate in the 2022 midterm elections, former President Donald Trump has begun crafting a policy agenda outlining a MAGA doctrine for the party. His template is the 1994 'Contract with America,' a legislative agenda released ahead of the midterm elections in the middle of President BILL CLINTON'S first term. And, as a cherry on top, he's teaming up with its main architect — [NEWT] GINGRICH — to do it."

FIRST IN PLAYBOOK: A NEW SUPER PAC TARGETING THE 'TREASON CAUCUS' — A pair of former advisers to Coons and Biden's campaign are launching a super PAC today targeting Republicans embracing the "Big Lie." DAVID BOWES, Coons' former finance director, and IAN MOSKOWITZ, who served as New Hampshire state director for Biden during the primary and his regional director for the general election, are teaming up on the effort, dubbed the "Never Again PAC."

The group, which aims to raise $4 million this cycle, will be "dedicated to breaking the cycle of dangerous Republican extremism by defeating the Congressional 'Treason Caucus,'" the pair said in an email. They're referring to the 147 Republicans who refused to certify the Electoral College results — and possibly also those who object to the creation of a Jan. 6 commission, which could see a vote this week.

PILLOW TALK — "MyPillow's Mike Lindell is turned away from Republican governors event," by Daniel Lippman: "The Republican Governors Association on Tuesday threw out MIKE LINDELL, the CEO of MyPillow and a top Trump ally, after he showed up to its spring conference in Tennessee, he told POLITICO in an interview.

"Lindell said he had flown to Nashville on Monday to attend the three-day meeting starting on Tuesday, but that only a few minutes after he collected his credential at the JW Marriott Hotel, an event coordinator in the lobby told him he was not allowed at any of the official RGA events. An RGA official, who spoke on the condition of anonymity, said on Tuesday night that Lindell tried to join transportation for members only for a dinner at the Tennessee Governor's Mansion and was denied."

CALI RECALL — "Poll: Most voters oppose Newsom recall as Covid optimism rises"

THIS AND THAT

NO LOVE FROM BEZOS' ADOPTED CITY— "DC attorney general sues Amazon on antitrust grounds, alleges it illegally raises prices," CNBC: "[D.C. A.G. KARL] RACINE is seeking to end what he alleges is Amazon's illegal use of price agreements to edge out competition; the lawsuit also asks for damages and penalties to deter similar conduct. The suit asks the court to stop what it calls Amazon's ability to harm competition through a variety of remedies as needed, which could include structural relief, often referred to as a form of breakup."

BANNON CASE THROWN OUT — "Steve Bannon's fraud case dismissed after months of haggling over Trump pardon," WaPo: "U.S. District Judge ANALISA TORRES, citing examples of other cases being dismissed following a presidential reprieve, granted Bannon's application — saying in a seven-page ruling that Trump's pardon was valid and that 'dismissal of the Indictment is the proper course.' Bannon was charged with fraud last year alongside three others in what prosecutors described as a massive fundraising scam targeting the donors of a private campaign to build a wall along the U.S.-Mexico border."

LEDE OF THE DAY, via AP: "TOPEKA, Kan. — A high school student reported that a Kansas House member working as a substitute teacher manhandled him and kicked him in the testicles during class, and the lawmaker told authorities that God told him to do it, according to a sheriff's deputy's written statement."

 

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PLAYBOOKERS

SCOOP: MEET THE 'BAND OF BROTHERS' — The 10 House Republicans who voted to impeach Trump have formed a support group, dubbing themselves "The Band of Brothers" for the moralistic stand they took regarding the former president and Jan. 6. Most of the 10 are known for keeping their heads down — and were a bit shocked by the outpouring of hate and personal attacks that followed their votes.

The 10 Republicans have an active group text chain going and frequently discuss threats or nasty comments they've received. They are: Kinzinger, Liz Cheney (Wyo.), John Katko (N.Y.), Fred Upton (Mich.), Jaime Herrera Beutler (Wash.), Dan Newhouse (Wash.), Peter Meijer (Mich.), Anthony Gonzalez (Ohio), Tom Rice (S.C.) and David Valadao (Calif.).

"Look … misery loves company, and we're all dealing with the same challenges," Kinzinger told us when we asked him about this Tuesday. Kinzinger, for example, has been attacked by his own extended family as a general in the "devil's army" and told us that people he thought were his friends have called him a POS.

When we asked Kinzinger who specifically said that, he answered nonchalantly: "Oh, everybody calls me that."

RAND PAUL vs. '80s POP STAR: Twitter removed a tweet from '80s pop singer Richard Marx for violating its rules after Sen. Rand Paul (R-Ky.) said it encouraged violence against him. (The tweet came days before someone sent a suspicious package with white powder to the senator's home in Kentucky.) But that hasn't stopped Marx from spreading the message in his original tweet — that if he ever meets the neighbor who assaulted Paul in 2017, he will "hug him and buy him as many drinks as he can consume." Marx has instead been retweeting a slew of messages supporting his initial tweet, like this one and this one. Good luck breaking this one up, @jack.

MEDIAWATCH — "Chris Cuomo Made a 'Mistake,' CNN Boss Jeff Zucker Tells Concerned Staffers," Daily Beast: "During a Tuesday afternoon town-hall meeting with staff, [Jeff] Zucker claimed he understood the 'unease' over [Chris] Cuomo's conduct, saying 'in no uncertain terms' that it was a 'mistake' for the primetime star to participate in strategy calls advising his politically powerful brother. 'He did cross a line,' Zucker said."

FIRST IN PLAYBOOK — Nathan Brand is now deputy comms director at the RNC. He previously was press secretary at the NRSC, and is an America Rising and Marco Rubio alum.

Shawn Affolter is joining Citizens for Responsible Energy Solutions as VP of government relations. He previously was deputy assistant Energy secretary for Senate affairs, and is a John Hoeven alum.

TRUMP ALUMNI — Jenny Korn is now executive director of the New Majority's Orange County Chapter, taking over for Kally Rapsey, who is leaving to focus on her political fundraising business. Korn most recently was a deputy assistant to the president in the Trump White House and is a George W. Bush White House alum.

TRANSITIONS — Trevor Pearson is now a senior associate director for energy policy at APCO Worldwide. He most recently was a policy adviser for Sen. Martha McSally (R-Ariz.) and is a Paul Gosar alum. … Retired Army Lt. Col. Brian Babcock-Lumish will be director of the Gen. David H. Petraeus Center for Emerging Leaders.

HAPPY BIRTHDAY: Rep. Jan Schakowsky (D-Ill.) … NPR's Noel KingAndrew Beilein … Commerce's Mike HarneyDina Ellis Rochkind … MSNBC's Tom RanzweilerJohn BrodtkeRachel VerVelde of Rep. Glenn Grothman's (R-Wis.) office … Matt KeelenMiriam Cash of Sen. Kirsten Gillibrand's (D-N.Y.) office … Emily Langer … ClearPath's Chris TomassiHana Veselka Vizcarra … Covington & Burling's Ben CavataroYardena SchwartzMorgan JacobsAllison Davis TuckSunny LeeAlyssa McClenningKevin BaileyJennifer VinsonErin Gray … POLITICO's Noor Adatia, Clayton Getchell and Steven Stiles … E&E News' Jess Locklear … former Reps. Joe Cunningham (D-S.C.) and Rich Nugent (R-Fla.) (7-0) … Katie Wise

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

 

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