| | | | | | | Presented By Facebook | | | | Axios Sneak Peek | | By Alayna Treene and Hans Nichols ·Jun 22, 2021 | | Welcome back to Sneak. It may be — finally — infrastructure week! 🚨 Breaking: "Four Saudis who participated in the 2018 killing of the Washington Post journalist Jamal Khashoggi received paramilitary training in the United States the previous year under a contract approved by the State Department," the New York Times scooped tonight. Smart Brevity™ count: 1,473 words ... 5.5 minutes. Edited by Glen Johnson. | | | | | | 1 big thing: Progressives draw infrastructure red lines |  | | | Illustration: Shoshana Gordon/Axios | | | | As the White House moves closer to endorsing the G20's bipartisan infrastructure deal, progressive Democrats are making clear they won't get on board without a guarantee, Axios' Alayna Treene reports. Why it matters: Left-leaning Democrats want a commitment the Senate also will act on a reconciliation bill — and some are insisting they vote on one first. They fear getting left behind as lawmakers from both parties increasingly sign on to the G20 framework. - Members of Congress who favor bold climate and child care action see the partisan reconciliation process — and its reduced, 51-vote requirement to pass legislation — as the best means for achieving those aims.
Between the lines: Progressive Democrats are exerting as much pressure as they can before President Biden takes an official position on the G20 bill. - The general view among many lawmakers and aides is that most Democrats will be "good soldiers" — as one Senate Democratic aide put it — and get on board if the president endorses the deal.
- But some progressives are saying they won't give their support without conditions.
What they're saying: "There's only one deal to be made here, not two separate deals," Sen. Elizabeth Warren (D-Mass.) told Axios. - "And that deal may have a bipartisan portion that covers some subset of what needs to be done on infrastructure, but we've got to have an agreement on the whole package, and that means we need every Democrat committed to moving through reconciliation."
Sen. Bernie Sanders (I-Vt.) said: "It's going to be either both or nothing. There will not be a bipartisan bill unless there's a major reconciliation bill." - Sanders said he doesn't think Senate Majority Leader Chuck Schumer (D-N.Y.) would put a bipartisan bill on the floor without guaranteeing he'll also offer a reconciliation bill.
- "Most progressives believe that the Senate ... needs to pass the reconciliation bill before the House votes for the bipartisan bill, and we can vote on them both together," Rep. Ro Khanna (D-Calif.) told Axios' Andrew Freedman.
Keep reading. 👓 Worthy of your time: "Senate Republicans block Democrats' sweeping voting rights bill." |     | | | | | | 2. Scoop: Pandemic's "wake-up call" for restoring industry |  | | | Brian Deese. Photo: Alex Wong/Getty Images | | | | National Economic Council director Brian Deese will label the coronavirus pandemic a "wake-up call" to bring manufacturing jobs back to America during a speech tomorrow unveiling the Biden administration's industrial policy, Axios' Hans Nichols has learned. Why it matters: The president's 2020 campaign was predicated on providing well-paying jobs for millions of Americans who've seen the country's industrial heartland hollowed out by automation and competition for lower-cost labor from other countries. - "Our private sector and public policy approach to domestic production prioritized low, short-term costs over security, sustainability and resilience," Deese will say in a speech to the Atlantic Council on Wednesday morning.
- "Markets — on their own — will not make investments in the technologies and infrastructure that would benefit an entire industry."
- "These failures require a different role for government, one where public R&D lays a foundation for breakthrough technologies, and government pulls forward the deployment and dispersion of innovation."
The big picture: Early in the pandemic, the shortage of personal protective equipment for medical workers raised awareness that America didn't produce many basic items to protect its citizens. - Deese will note that "nearly 90% of generic active pharmaceutical ingredient facilities are located overseas and have been moving offshore for the last 50 years."
- The rest of his speech articulates Biden's approach to reversing those trends and lays out the administration's long-term strategy for how America can compete with China and other global challengers.
Driving the news: Deese's speech comes as he and other White House officials work with Congress to try to pass a bipartisan infrastructure deal, which includes roughly $580 billion in new spending. - But that effort is just a sliver of the more than $4 trillion of new spending the president has proposed as part of his "Build Back Better" agenda, another cornerstone of his campaign.
- This month, the White House announced a new task force to focus on solving the supply chain disruptions created by the pandemic.
- That dovetails with Deese's advocacy for the public spending on research and development, as well as a bigger role for the federal government in the procurement process.
Keep reading. | | | | | | | | 3. Parties pounce on China as midterm issue |  | | | Illustration: Annelise Capossela/Axios | | | | Democrats and Republicans in competitive states are already leaning into U.S. competition with China as a key issue in the fight to control the Senate in 2022, Axios' Sarah Mucha reports. Why it matters: American voters hold increasingly negative feelings toward the Chinese government, particularly around bilateral economic relations and following the nation's handling of the COVID-19 outbreak. - Biden also has made it clear confronting China remains a foreign policy priority.
Possibly vulnerable Democratic senators are capitalizing on the passage of the U.S. Innovation and Competition Act, a sweeping global competition bill focused on China that recently passed by a rare bipartisan vote. - Sen. Raphael Warnock (D-Ga.) visited Kia's West Point factory in Georgia to address how the bill could address the recent semiconductor shortage and avoid future plant shutdowns, like one the factory experienced.
- Sens. Maggie Hassan (D-N.H.) and Mark Kelly (D-Arizz.) wrote op-eds in their local news outlets highlighting the bill's benefits.
The Democratic Senatorial Campaign Committee and state Democratic parties are calling out Republicans like Sens. Ron Johnson (R-Wis.) and Marco Rubio (R-Fla.), both of whom voted against the bill. - They've also targeted Republicans running in open Senate seats who have expressed opposition to the bill.
Meanwhile, Rubio has been making a play for China hawks in Florida, Axios' Lachlan Markay reported last week. - Rubio, who is up for re-election next year, has been sending campaign emails with subject lines such as, "Dems <3 China," and, "Is it time to stand up to Communist China?" to a list maintained by a nonprofit group called Stand Up to China.
In Arizona, Republicans latched onto Kelly's ties to a Chinese tech firm last year, and it's likely they'll continue to use that strategy. - The senator's team has argued he isn't beholden to Chinese authorities.
Republicans have long branded Democrats as "weak" on China as a line of attack. Expect that to continue through the campaign cycle, as Democratic candidates tout the passage of the U.S. Innovation Act and reframe the narrative. - They plan to focus on increasing the United States' competitive edge with China as a policy priority.
Keep reading. | | | | | | | | A message from Facebook | | The internet has changed a lot since 1996 - internet regulations should too | | |  | | | | It's been 25 years since comprehensive internet regulations passed. See why we support updated regulations on key issues, including: - Protecting people's privacy.
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| | | | | | 4. U.S. attorney finalist trashes Labor secretary |  | | | Rachael Rollins and Marty Walsh. Photos: Jessica Rinaldi/The Boston Globe via Getty Images (Rollins); Tom Williams/CQ-Roll Call Inc. via Getty Images (Walsh) | | | | A finalist for U.S. attorney in Boston is publicly trashing the city's former mayor — Labor Secretary Marty Walsh, Axios' Glen Johnson reports. Why it matters: Rachael Rollins' approach is perpetuating scrutiny of a troubled Cabinet secretary and fellow Democrat, and hints at the independence she may exhibit if tapped for top federal prosecutor for the eastern half of Massachusetts. - It's also testing the Biden communications shop's tight-ship, no-drama approach — and would provide fuel for Republican questioning in a prospective Senate confirmation hearing.
Driving the news: Rollins, district attorney of Boston-based Suffolk County, has repeatedly complained about Walsh distancing himself from a scandal that emerged just before he started working in Washington. - In a last-minute move, the outgoing mayor named Dennis White to be the city's new police commissioner.
- Two days later, Walsh suspended White after The Boston Globe reported he had faced domestic violence allegations from his ex-wife.
- Walsh's replacement, acting mayor Kim Janey, fired White, but he sued to retain his job.
- An independent report and subsequent court proceedings included sworn affidavits stating Walsh knew about White's past before putting him in the new job — something Walsh has denied in statements to the media.
What they're saying: "Somebody signed something under the pains and penalties of perjury. For me that has to trump … somebody just saying, 'Yeah, that never happened,'" Rollins told "Boston Public Radio" last month. - "I think our former mayor left a very big mess for our acting mayor," she added.
- Another Democrat, Rep. Seth Moulton (D-Mass.), said Walsh should resign if he knew about the White accusations.
In an interview that aired Sunday, Rollins went further. - "This is a bad situation overall, because either he knew about it and he's lying, or he didn't know about it and you're a terrible manager, right?" the DA told WCVB-TV's "On the Record."
- Rollins also confirmed she is one of three finalists for U.S. attorney.
The White House declined to comment. - Rollins said today in a tweet: "This unforced error has cost our City millions & counting. As taxpayers, we foot the bill. It has distracted attention away from the hard work BPD does in our communities every day. Being silent & meek isn't in my job description. We have murders to solve."
Keep reading. | | | | | | | | 5. Pic du jour |  | | | Photo: Kevin Dietsch/Getty Images | | | | A constellation of microphones catches comments from President Biden in the White House Roosevelt Room. | | | | | | | | A message from Facebook | | Why Facebook supports updated internet regulations | | |  | | | | 2021 is the 25th anniversary of the Telecommunications Act of 1996, the last major update to internet regulation. It's time for an update to set clear rules for addressing today's toughest challenges. See how we're taking action on key issues and why we support updated internet regulations. | | | | 📬 Thanks for reading. A reminder you can sign up for email delivery of this or any of Axios' other free newsletters through this link. |  | | The tool and templates you need for more engaging team updates. | | | | | | Axios thanks our partners for supporting our newsletters. If you're interested in advertising, learn more here.
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