| | | | | |  | | By Ryan Lizza, Rachael Bade, Tara Palmeri and Eugene Daniels | Presented by |  | | | | | | |  | DRIVING THE DAY | | In Washington, relationships come and go. In a quick succession of phone calls Tuesday, President JOE BIDEN exited infrastructure negotiations with Sen. SHELLEY MOORE CAPITO (R-W.Va.) and started them with Sen. BILL CASSIDY (R-La.). As might be expected, the call ending things with Capito was short (less than five minutes). Biden emphasized they would remain friends, noting "his gratitude" for "her efforts and good faith conversations" despite his "disappointment" that they didn't have the same goals, according to a statement. Capito expressed more recriminations, telling Fox News the relationship began with a massive "miscommunication" that they never overcame. The call with Cassidy was longer and filled with the heightened expectations of a new relationship. They talked numbers. Biden liked the sound of some half a trillion dollars in new spending, and Cassidy opened up about how the way to his heart is "flood resiliency and energy provisions." Biden explained that while it was an awkward time to be starting something new — he's leaving for Europe today for eight days — he "would be in contact" "by phone." The big question is: Why does Biden think that this new infrastructure relationship will work out any better than his last one, especially since there are only five Republicans in this group, half the number needed to overcome a filibuster? Here's the optimistic case, per senior White House aides: — A bipartisan deal could create a centripetal force in the Senate that pulls in other Republicans, including Capito herself. — The model here is Endless Frontier, the industrial policy bill that passed the Senate on Tuesday. There were never large numbers of Republicans at the negotiating table, but it garnered 68 votes. (Incidentally, the bill includes $150 billion worth of spending that is similar to what Biden recently proposed in his American Jobs Plan, so it proves GOP opposition is not impenetrable.) Needless to say, the most vocal progressives are not enthusiastic about this strategy. Rep. PRAMILA JAYAPAL (D-Wash.) blasted it as "foolish." And CNN's Manu Raju and Lauren Fox report that at the Senate Democrats' lunch Tuesday, "one Democrat after another teed off on the strategy and expressed deep frustration at what they viewed as a fruitless effort to find consensus with Senate Republicans." A few other notes from our reporting: — The Capito group was stacked with ranking committee members and senators who are part of Minority Leader MITCH MCCONNELL'S leadership team (JOHN BARRASSO, ROY BLUNT, Capito). Getting agreement from them is much more difficult than striking a deal with the more independent Republicans in the new group (Cassidy, MITT ROMNEY, ROB PORTMAN, LISA MURKOWSKI and SUSAN COLLINS). The flip side of this is that the new group of senators have less influence with their GOP colleagues. — But this is not really about the Republicans in the group. It's about two of the Democrats in it: JOE MANCHIN (W.Va.) and KYRSTEN SINEMA (Ariz.). There was no way Biden could go to them and explain he's exhausted his bipartisan options without a real effort at negotiating with the very group they're in. — There are some internal tensions within this bipartisan group of 10 senators. Tuesday evening was the first time Manchin was present at one of the group's meetings, and that fact was noted by his colleagues in the room. Portman has been the GOP workhorse of the group, and there was some head-scratching as to why Biden called Cassidy on Tuesday. — The best explanation is that Cassidy has been engaged with Rep. JOSH GOTTHEIMER (D-N.J.) on a plan, and Gottheimer has been keeping the White House apprised of those talks. On Monday night, Gottheimer talked to White House aides BRIAN DEESE and LOUISA TERRELL. Late Tuesday night, Gottheimer's House group, the Problem Solvers Caucus, which consists of 29 Democrats and 29 Republicans, unveiled its own proposal: $762 billion in new spending over eight years, though the pay-fors are not yet specified. We're told the Cassidy group's Senate plan will be "in the same ballpark." — A big reconciliation bill is happening no matter what. Both Sen. BERNIE SANDERS (I-Vt.) and Majority Leader CHUCK SCHUMER made that clear Tuesday. The only question is whether a bipartisan infrastructure bill precedes it. | | A message from Google: Digital safety net helps businesses adapt, recover, and grow. A new report by the Connected Commerce Council (3C) in partnership with Google found that digitally advanced small businesses hired twice as many employees as digitally uncertain businesses, and were over 3 times more successful at retaining customers. Read the report. | | | Good Wednesday morning, and thanks for reading Playbook. On Tuesday night, the White House press corps waited for five hours at Dulles airport after their first charter plane was seized by … cicadas. The AP's Jonathan Lemire tweeted about the cicada strike, and our ANITA KUMAR reached out around midnight to say they were still waiting for a new plane and a new pilot to take them to the U.K. for Biden's first foreign trip. Is it time to officially call this the Cicada Plague of 2021? Drop us a line: Rachael Bade, Eugene Daniels, Ryan Lizza, Tara Palmeri. TESTING A TRUMPIAN FANTASY — Last week it was reported that former President DONALD TRUMP believes he'll be reinstated as president after it's proven that Biden cheated in the election. And lo and behold, according to a new POLITICO/Morning Consult poll, three out of 10 Republican voters think that it's going to happen, too. The vast majority of Americans dismiss the Trumpian fantasy: 84% of Democrats, 70% of independents and 61% of Republicans. Yet a third of Republicans isn't nothing: While Trump hasn't said publicly he thinks he'll be reinstated, the poll is another reflection of the grip he has on the GOP base. Speaking of which, 59% of GOP voters polled think Trump should play a major role in the party going forward. Toplines … Crosstabs INFLATION WATCH — Former President HARRY TRUMAN once asked for a one-handed economist because he was sick of them answering his questions by saying, "on the one hand … but on the other." The issue of how seriously to take inflation risks, which has recently become a major partisan issue, has divided the field in a way that would have infuriated Truman. A new survey released Tuesday by the Initiative on Global Markets at the University of Chicago's Booth School of Business asked its panel of 43 top economists for their views on the following statement: "The current combination of U.S. fiscal and monetary policy poses a serious risk of prolonged higher inflation." On the one hand 26% of the panel agreed, but on the other 21% of them disagreed. The biggest group (40%) was uncertain. | | | | A message from Google:   Report: Due to COVID-19, approximately 11 million small businesses (37%) would have closed all or part of their business without digital tools. Learn more. | | | BIDEN'S WEDNESDAY: — 8:10 a.m.: The president and first lady JILL BIDEN will depart the White House en route to the U.K. — 8 p.m. British Summer Time: The Bidens will arrive at Royal Air Force Mildenhall. — 8:45 p.m.: The president and first lady will deliver remarks to U.S. Air Force personnel and their families stationed at Royal Air Force Mildenhall. — 9:30 p.m.: They will depart Royal Air Force Mildenhall en route to Cornwall Airport Newquay, where they are scheduled to arrive at 10:55 p.m. BST. — 11:20 p.m.: The Bidens will depart for St. Ives, Cornwall, where they are scheduled to arrive at 11:40 p.m. BST. THE HOUSE is out. Acting OMB Director SHALANDA YOUNG will testify before the Budget Committee at 11 a.m. and an Appropriations subcommittee at 3 p.m. Labor Secretary MARTY WALSH will testify before the Education and Labor Committee at noon. Colonial Pipeline CEO JOSEPH BLOUNT will testify before the Homeland Security Committee at noon. THE SENATE is in. A.G. MERRICK GARLAND will testify before an Appropriations subcommittee at 2 p.m. FIRST IN PLAYBOOK — The first lady's office is putting out her G-7 schedule today, including stops separate from the president that focus largely on military veterans: — Jill Biden will meet with CARRIE JOHNSON on Thursday over tea and tour St. Michael's Mount off the coast of Cornwall. — On Friday and Saturday, she'll participate in G-7 welcome events and the program for G-7 spouses. — The first lady will meet Saturday with volunteers with Bude Surf Veterans, which helps British veterans heal through surfing. — The Bidens will head to Windsor Castle on Sunday to meet with the queen. Then Jill Biden will meet with British veterans who took part in the 2018 expedition Walk of America. | | | | DON'T MISS THE MILKEN INSTITUTE FUTURE OF HEALTH SUMMIT: POLITICO will feature a special edition of our Future Pulse newsletter at the 2021 Milken Institute Future of Health Summit. The newsletter takes readers inside one of the most influential gatherings of global health industry leaders and innovators who are turning lessons learned from the past year into a healthier, more resilient and more equitable future. Covid-19 threatened our health and well-being, while simultaneously leading to extraordinary coordination to improve pandemic preparedness, disease prevention, diversity in clinical trials, mental health resources, food access and more. SUBSCRIBE TODAY to receive exclusive coverage from June 22-23. | | | | | | | PLAYBOOK READS | | | 
PHOTO OF THE DAY: Several senators hold a bipartisan meeting on infrastructure in the Capitol basement Tuesday. | Samuel Corum/Getty Images | POLITICS ROUNDUP VIRGINIA PRIMARY RESULTS — "McAuliffe wins big in Virginia," by Zach Montellaro and Nick Niedzwiadek: " TERRY MCAULIFFE'S comeback bid aced its first test Tuesday, as the former Virginia governor cruised to victory in the state's Democratic gubernatorial primary. He easily defeated his two main rivals, former state Del. JENNIFER CARROLL FOY and state Sen. JENNIFER MCCLELLAN, capturing about 60 percent of the vote in a five-candidate race in which he was the wire-to-wire favorite since entering last December." AND IN NEW JERSEY — "Trump backers lose big as Ciattarelli claims GOP nomination in New Jersey," by Matt Friedman ALL ABOUT ADAMS — "Burning the midnight oil: Eric Adams' mysterious whereabouts off the campaign trail," by Sally Goldenberg and Joe Anuta: "The mayoral hopeful has been staying overnight and keeping late-night and early-morning hours in the government building where he and his staff work, according to POLITICO's recent observations and those from several rival campaigns. When he is not laying his head in the taxpayer-owned building, the borough president has provided conflicting information on official documents about where he resides. "Adams is leading the pack of Democratic candidates to become New York City's next mayor, riding a wave of concern about crime that is bolstered by his 22-year career with the NYPD. Now as borough president, an examination of his government and political activity reveals blurred lines between the two, as well as a confusing account of his residential status for someone seeking one of the most visible jobs in the country." ARIZONA SENATE RACE HEATING UP — "Michael McGuire enters Arizona's GOP US Senate primary race; hopes to challenge Sen. Mark Kelly," by the Arizona Republic's Yvonne Wingett Sanchez: "MICHAEL 'MICK' MCGUIRE, the retired adjutant general of the Arizona National Guard who was a familiar presence in televised briefings during the pandemic, formally began a U.S. Senate campaign Tuesday, hoping to challenge Sen. MARK KELLY. "His long-expected entry to the race adds a measure of competition to the GOP field in a closely watched contest that could help decide the Senate's majority. At least two more high-profile candidates are expected to step into the race." | | | | A message from Google:   Google has free tools to help businesses stay connected. Learn more. | | | THE WHITE HOUSE VACCINE DIPLOMACY — "Biden's global vaccine strategy draws scrutiny ahead of G-7 pandemic talks," by WaPo's Dan Diamond and Emily Rauhala: "Biden's surprise push to temporarily waive patent protections for coronavirus vaccines to bolster production in the developing world created new tensions with the European Union, which criticized the idea as wrongheaded and inadequate because it would not boost vaccine production for months or even years. … "Biden also is seeking to renew alliances damaged by President Donald Trump, with health experts lamenting that opportunities to address the global crisis were lost amid his predecessor's clashes with the World Health Organization. And some health, diplomatic and global aid experts inside the Biden administration continue to voice frustrations that the U.S. strategy remains piecemeal compared with more-comprehensive proposals from global aid groups." WARINESS HAS REMAINED — "Not a love story: Biden has long been wary of Russia's Putin," by Nahal Toosi: "Biden will see [Russian President VLADIMIR] PUTIN after holding multiple summits with America's European allies. 'We are standing united to address Russia's challenges to European security, starting with its aggression in Ukraine,' Biden wrote in a weekend column in The Washington Post. 'And there will be no doubt about the resolve of the United States to defend our democratic values, which we cannot separate from our interests.' "One thing is unlikely to have changed since [former President GEORGE W.] BUSH met with the Russian leader back in 2001: Biden still does not trust Putin." PRESS CONFERENCE CRASHER — During a press conference in Mexico, VP KAMALA HARRIS took a question from a reporter who said it was an "honor" to ask a question and added, "I voted for you." But it turns out the love fest was too good to be true. The reporter, who was identified as a correspondent for UniNoticias, does not actually work for the network. Univision Noticias President DANIEL CORONELL tweeted: "In Mexico an individual which has no association with @Univision claimed to be a reporter for @UniNoticias in order to ask the @VP a question and to compliment @KamalaHarris. Let it be clear to everyone that Ms. MARIA FERNANDA REYES is not part of this media organization." The veep's spokesperson SYMONE SANDERS tweeted back that they were looking into it. — "Taking on tough tasks for Biden, Harris is at political risk," by NBC's Jon Allen JAN. 6 AND ITS AFTERMATH SWITCHING TEAMS — "Trump Impeachment Lawyers Are Now Representing Capitol Riot Defendants," by NPR's Tom Dreisbach: "Attorneys MICHAEL VAN DER VEEN and BRUCE CASTOR defended Trump at his Senate impeachment trial over allegedly inciting the Jan. 6 U.S. Capitol insurrection. Even as van der Veen, Castor and the Trump defense team called the impeachment 'political theater' and ultimately secured Trump's acquittal, they condemned the rioters for bringing 'unprecedented havoc, mayhem and death' to the Capitol. They argued in a legal brief that the rioters' actions deserve 'robust and swift investigation and prosecution.' "Now, van der Veen and Castor find themselves on the other side of those prosecutions, defending at least three people charged in connection with the Capitol breach." MEDIAWATCH THE MOST STRESSFUL JOB INTERVIEW EVER — We hear Amazon founder JEFF BEZOS , the owner of WaPo and a newcomer to town, played an integral role in the publication's recent search for a new editor. Several sources said that while publisher FRED RYAN made the ultimate call to go with AP's SALLY BUZBEE, Bezos interviewed candidates and had input as well, even hosting dinners or other meals with the finalists at his D.C. mansion. Candidates were invited to bring their spouses; Bezos, a recent divorcee, brought his girlfriend, LAUREN SANCHEZ, a former TV host. WaPo declined to comment. ON THE RISE — Morning Consult, the D.C. data and polling company that partners with POLITICO on political polls, reported Tuesday achieving "unicorn" status with a valuation of $1 billion. Read the press release here TRUMP CARDS KNIFE FIGHT — "The top Trump political fundraiser who helped plan his January 6 rally is out of Trumpworld," by Insider's Tom LoBianco: "Former President Donald Trump's post-election political team has fired one of its top fundraisers who played a key role in organizing the January 6 'Save America Rally' that preceded Trump supporters' attack on the US Capitol, Republican strategists and Trump advisors told Insider. "The Trump-approved group America Alliance fired veteran fundraiser CAROLINE WREN at the end of last month, according to the Trump advisors. Other Trump fundraising groups sent cease-and-desist letters to Wren demanding she not cite Trump in her own efforts to recruit high-dollar donors, they said." | | | | JOIN THURSDAY FOR A TALK ON RESETTING INTERNET PRIVACY: Calls for some type of national privacy law have gained traction in recent years. The U.S. has no overarching national law governing data collection and privacy. Instead, it has a patchwork of federal laws that protect specific data types, such as consumer health and financial information and the personal data generated by children. Join POLITICO for a conversation on tech, data and the future of user privacy, and the most viable path forward. REGISTER HERE. | | | | | | | PLAYBOOKERS | | LET THEM WEAR PRADA — "New Yorker Employees Stage Protest Outside Anna Wintour's Townhouse," NYT: "On Tuesday evening, the employees marched from the campus of New York University to the nearby Greenwich Village home of Anna Wintour, the fashion icon, magazine editor, publishing executive and Manhattan power player who has become a symbol of Condé Nast, the corporate home of The New Yorker. "'Bosses wear Prada, workers get nada!' they chanted." ALSO, PIGS FLEW — "New York Times Publishes Then Deletes Article Claiming Watermelons Were Found on Mars," Futurism: Well it turns out the lede — "The FBI declined to comment onreports (sic) of watermelons raining down, but confirmed that kiwis have been intercepted. This story is terribly boring" — and the byline, Joe Schmoe, were fake. But the mock article used for testing the website temporarily stopped the internet. Watermelons on Mars? Say it's true! FIRST IN PLAYBOOK — The fourth season of "Fiasco," Leon Neyfakh's popular podcast series, will tackle Benghazi and debut on June 17. We have an exclusive preview of the show's three-minute trailer . Neyfakh, who also co-created the "Slow Burn" franchise, spent nearly a year immersed in reporting on the events that led to the tragedy in Libya and the convoluted aftermath. People told him he was a "masochist" for wanting to revisit this chapter of American scandal politics. Like all of Neyfakh's recent podcasts, Benghazi aims to retell an episode from recent history to illuminate what's happening today. He notes that Benghazi often brings to mind "conspiracy theory," "bad-faith political warfare" and "bullshit," so it sounds like an apt subject. ROCKIN' IN THE SEMI-FREE WORLD — "Antony Blinken's Rock & Roll Heart," by Rolling Stone's David Browne: "It turns out he could play guitar reasonably well, wrote record reviews during his college days, and had penned his own songs (even making indie recordings of some of them, available on streaming services). "Shortly before the latest flare-up in the Israeli-Palestinian conflict, Blinken agreed to talk with Rolling Stone about his rock & roll jones. That crisis and other pressing issues delayed the conversation, but last week, Blinken finally found time to talk. 'I tell you, it's a pleasure to do,' he says about carving out time for such an unusual conversation. 'And it's a nice change of pace from, say, Middle East peace.'" GIRL TALK: Engage founder Rachel Pearson and First Five Years Fund Executive Director Sarah Rittling are hosting an Instagram Live on Thursday at 11 a.m. @EngageForWomen on "pre-K and childcare and the commonsense policy options on the table for women." FIRST IN PLAYBOOK — STEFANIK BUILDS OUT HER NEW OPERATION: Rep. Elise Stefanik (R-N.Y.) is adding a slate of new hires to her House GOP Conference staff and political operation. Alex DeGrasse will be executive director for Team Elise and previously was a senior adviser for Stefanik. Cara Mason will be finance director for Team Elise and previously was RNC and Trump Victory finance director. For the House Republican Conference: Stefanik's longtime COS Patrick Hester will continue in that role and be chief for her leadership office; Ali Pardo, a Trump campaign alum, will move from campaign comms to comms director for the entire GOP Conference; Jake Vreeburg will be policy director and previously was deputy executive secretary for the NSC in the Trump White House; Courtney Butcher will be director of member services and previously was director of member services for the House Education and Labor Committee; Francis Brennan will be director of rapid response and previously was comms director for Rep. Brian Mast (R-Fla.) and is a Trump campaign alum; and Houston Holdren will be director of operations and previously was director of scheduling and operations for Stefanik. — Sally Aman and Teresa Chaurand are joining GPS Impact. Aman will be chief comms officer and previously was SVP of comms and public affairs at USTelecom and is an Al Gore alum. Chaurand will be principal and senior adviser and most recently was a volunteer on the Biden-Harris transition team and is currently working to advance representation of Latinos in the Biden administration. TRANSITIONS — Gabrielle D'Adamo Singer is now a senior manager for cyber policy at Accenture North America government relations. She previously was staff director for the Senate Homeland Security and Governmental Affairs Committee. … Ian Brekke is now a partner at Nichols Liu. He previously was acting general counsel at DHS. … Richard Carbo is joining S-3 Group as VP of comms. He previously was deputy chief of staff and campaign manager to Louisiana Gov. John Bel Edwards, and spent seven years on Capitol Hill. … … Sally Chen is now a press assistant for the New Democrat Coalition. She previously worked for Rep. Madeleine Dean's (D-Pa.) congressional office and campaign. … Alex Perkins and Victoria Flood are joining Mehlman Castagnetti Rosen & Thomas as principals. Perkins previously was senior manager of international government affairs and stakeholder outreach at Stellantis NV. Flood previously was a senior policy adviser for Sen. Shelley Moore Capito (R-W.Va.). BIRTHWEEK (was Monday): Amazon Web Services' Kaitlin Kirshner HAPPY BIRTHDAY: Rep. Don Young (R-Alaska) … Axios' Margaret Talev … Liz Mair … Marvin Kalb (91) … Ray Salazar of House Majority Leader Steny Hoyer's office … Zac Petkanas of Petkanas Strategies … Lori Lodes of Climate Power … Joe Curl … Candi Wolff of Citi … POLITICO's Susannah Luthi … Newsweek's Ramsen Shamon … Dante Atkins … Department of Energy's Charisma Troiano … Yonathan Teclu of Rep. Ilhan Omar's (D-Minn.) office (25) … Arkansas A.G. Leslie Rutledge … Jess O'Connell of NEWCO Strategies … Jeff Solnet of Precision Strategies … Vicki Shabo ... Ken Adelman … Delve's Jeff Berkowitz … Deloitte's Alyson Chwatek … Ashley Lowerre of Opn Sesame … Google's Ria Bailey-Galvis ... Laura Matthews … Alexandra Toma … Anne Venzor … former Rep. Kendra Horn (D-Okla.) … Betsy Mullins … Ashley Bahnken 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. | | A message from Google: Helping small businesses acquire new digital skills. A new report by the Connected Commerce Council (3C) in partnership with Google found that 11 million small businesses would have partially or completely closed without digital tools due to COVID-19. Grow with Google supports a network of more than 8,000 partner organizations, including chambers, libraries, and local governments, providing them with training and resources to help small businesses in their community. 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