| | | | | |  | | By Ryan Lizza, Rachael Bade, Tara Palmeri and Eugene Daniels | Presented by |  | | | | | | |  | DRIVING THE DAY | | JUST POSTED: Friend of Playbook Olivia Nuzzi profiles New York gubernatorial candidate ANDREW GIULIANI for the next issue of New York magazine. Lots of juicy details: DONALD TRUMP is mad at him. He gave a partially false story to the New York Post about his wife's "American Dream" immigration story. New York Republicans want him to end the campaign he just started. And RUDY isn't invited to the 12-person Giuliani family group chat. "Maybe I'm just a glutton for punishment," Andrew tells Olivia. NUMBER OF THE DAY: 21. That's how many senators now support the bipartisan infrastructure framework proposed by Sens. KYRSTEN SINEMA, JOE MANCHIN, ROB PORTMAN, BILL CASSIDY, MITT ROMNEY and the other members of their centrist group. This is big. Some Democrats scoffed at the notion that the GOP would ever be able to deliver 10 votes needed to clear the filibuster. As of Wednesday night, they were at 11 — a number that appears likely to grow. BUT … What does this do to the Democrat side of the equation? The fear that Sinema and Manchin will oppose a larger reconciliation package stuffed with the left's top priorities is real. Essentially, Democratic leaders are letting their centrists eat dessert without the veggies. The group released its framework Wednesday night, a leaked version of which was obtained by our colleague Burgess Everett. This version shows $579 billion in new spending. Key categories include roads and bridges, rail, public transit, airports, electric vehicles, broadband, power infrastructure, water infrastructure and coastal resiliency. The bigger reveal was the menu of pay-fors, which had been tightly held: — Infrastructure financing authority to leverage private investment
— Public-private partnerships, private activity bonds and asset recycling
— Direct-pay municipal bonds for infrastructure investment
— Reduce the IRS tax gap
— Redirect unused UI relief funds
— Repurpose unused CovId relief funds for infrastructure
— Expand eligible uses of Covid state/local funds
— Allow use of toll credit balances for infrastructure
— Annual surcharge on electric vehicles
— Index gas tax to inflation ("placeholder pending alternative non-tax offset from the Biden Administration")
— Adjust customs user fees A key note about this leaked draft: We're told that this is not the precise version of the framework that was presented to the White House. Importantly, the White House was assured Wednesday that there would be no gas tax increase or inflation indexing and no electric vehicle user fee in the bipartisan framework agreement. BIDEN FACES A BIG DECISION ON INFRASTRUCTURE — As he returns from Europe, President JOE BIDEN faces a major decision that will have consequences for the rest of his agenda: Does he take the deal and hope the rest of his agenda can pass on reconciliation without assurances from Sinema and Manchin? Or does he move on and go for one big Democrats-only proposal? Biden told reporters Wednesday he hadn't seen the details of the proposal but "I know that my chief of staff thinks there's some room." He won't be able to dodge questions about it for long, though. | | A message from Amazon: The Progressive Policy Institute (PPI) ranked Amazon as the No. 1 U.S. company investing in America. For the second year in a row, Amazon placed first on PPI's Investment Heroes list. PPI estimates that Amazon invested $34 billion in American infrastructure in 2020, which led to the creation of more than 400,000 jobs . Every Amazon job comes with a starting wage of $15/hr and comprehensive benefits for regular, full-time employees. Learn more. | | | VIEW FROM THE WEST WING: The new bipartisan proposal is being greeted positively at the White House, where it's considered far superior to the SHELLEY MOORE CAPITO proposal, though there is a reluctance to comment definitively on the details without a more careful look. (But the spending line items are clearly closer to Biden proposals, and the gas tax has been nixed.) The general view is that the daily coverage of these negotiations has been too quick to call the deal dead when there's a spate of negative news (like Tuesday morning) or to overreact when a deal suddenly seems possible after some positive developments (like today). Biden's senior aides still consider a deal doable, though very hard, and they know it will be declared dead and then resurrected many more times before this is over. In the meantime, our Laura Barrón-López reports that the White House is trying to calm the fears of progressives who are freaking out behind the scenes about their priorities getting shelved. "[T]op aides have been privately reassuring anxious Democrats that they are committed to pushing a reconciliation bill that would contain the other big parts of Biden's jobs and family plans — including money for eldercare, early childhood and college education, childcare and those provisions addressing climate change." — "Bipartisan infrastructure pitch gains steam on Capitol Hill as Biden weighs in from Europe," by WaPo's Seung Min Kim and Tony Romm Good Thursday morning. Thanks for reading Playbook. Drop us a line: Rachael Bade, Eugene Daniels, Ryan Lizza, Tara Palmeri. SCOOP: HOUSE FREEDOM CAUCUS FACES INTERNAL TENSIONS — When 21 (we told you it was the number of the day) of Trump's most devoted House acolytes voted against a bill to award police for defending the Capitol on Jan. 6, one conservative firebrand notably refused to join them: Freedom Caucus founder JIM JORDAN. It was the second time in recent days that the Ohio Republican broke with members of the group he created. Jordan also endorsed Rep. ELISE STEFANIK (N.Y.) to be No. 3 in GOP leadership — even as the group of hard-liners balked and came behind another candidate. The differences highlight a divide brewing in the caucus, which for a long time was considered the most powerful faction on Capitol Hill, according to three sources familiar with the internal dynamics of the group. Flush with a host of first-year members who embody the more extreme wing of the party, including former QAnon followers MARJORIE TAYLOR GREENE (Ga.) and LAUREN BOEBERT (Colo.), the group that once identified as a collective of hardcore conservatives has taken a more Trump-y, in-your-face turn in recent months. The shift is starting to annoy some people who prefer the group's original identity. Two sources close with the group bemoaned its new direction, saying the opposition to Stefanik — a centrist, but one who adamantly supports Trump — was absurd. Equally outlandish, in their view, was the vote to oppose awarding the cops. One person argued that it's hard to even know what the Freedom Caucus stands for these days. The other said the caucus under the lead of Rep. ANDY BIGGS (R-Ariz.) is grasping for relevance, acting out to try to stay in the news at a time when it naturally has less clout because the GOP is in the minority. Defenders of the group have a different take. They note that HFC is largely unified when it takes official positions — and technically they never did that on the cops bill, though their members made up most of the 21 who voted no. But the opposition to Stefanik was actually more about sending a signal to Minority Leader KEVIN MCCARTHY than about ensuring their candidate, CHIP ROY (Texas), won. Roy picked up nearly 50 votes. And in the process, the group was able to show McCarthy that he needs their support to get the 218 votes it would take to become speaker if Republicans win back the House. In an email, MELISSA BROWN, the group's comms director, downplayed any disagreements. "Republicans should share a common goal — retaking the House in 2022," she said. "The Freedom Caucus is focused on combating the radical Left agenda while providing solutions that put America first." The divide is a microcosm of the internal war GOP war over Trump(ism) that's been going on for years. While most House Republicans stuck with Trump after Jan. 6, even some steadfast supporters think their colleagues have gone too far — by suggesting people were merely staging a "protest" that day, or that Capitol Police killed an innocent bystander rather than a rioter trying to break into the chamber. At the very least, the makeover of the HFC foreshadows a major headache for McCarthy in 2023 if he becomes speaker. If he thought the Freedom Caucus was a pain back in the day, the group was tame then compared to now. Related: "GOP hands Dems a new line of attack: They're for 'Trump over the cops,'" by Melanie Zanona | | A message from Amazon: All Amazon employees in the U.S. earn a starting wage of at least $15 an hour. Learn more. | | | BIDEN'S THURSDAY: — 10 a.m.: The president will receive the President's Daily Brief. — 3:30 p.m.: The president will sign the bill making Juneteenth a federal holiday into law. Biden and VP KAMALA HARRIS will speak. The White House Covid-19 response team and public health officials will brief at 11 a.m. THE HOUSE will meet at 10 a.m. DHS Secretary ALEJANDRO MAYORKAS will testify before the Homeland Security Committee at 8:30 a.m. Treasury Secretary JANET YELLEN will testify before the Ways and Means Committee at 10 a.m. Speaker NANCY PELOSI will hold her weekly press conference at 10:45 a.m. THE SENATE is in. The Judiciary Committee will vote on several nominations, including DAVID CHIPMAN to head ATF, at 9 a.m. Defense Secretary LLOYD AUSTIN and Joint Chiefs of Staff Chair Gen. MARK MILLEY will testify before the Appropriations Committee at 10 a.m. Minority Leader MITCH MCCONNELL and Sen. ROY BLUNT (R-Mo.) will hold a press conference at 12:15 p.m. on S. 1, the For the People Act. | | | | 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 22-24. | | | | | | | PLAYBOOK READS | | | 
PHOTO OF THE DAY: Sen. Joe Manchin (D-W.Va.) rushes back to a basement room at the Capitol, where he and other Democrats work behind closed doors on Wednesday, June 16. | J. Scott Applewhite/AP Photo | THE WHITE HOUSE BIDEN-PUTIN RECAP — "Biden, Putin say progress made in Geneva but gulfs on issues remain," by NBC's Shannon Pettypiece and Lauren Egan: "In separate post-summit news conferences, Biden described the tone of the discussions as 'good, positive' and [Russian President [VLADIMIR] PUTIN said it was 'constructive' and there was a 'glimpse of hope' regarding mutual trust. "Biden said the men discussed the cases of PAUL WHELAN and TREVOR REED, Americans imprisoned in Russia; arms control measures; [ALEXEI] NAVALNY; the importance of a free press; cybersecurity; Russian attempts to destabilize democratic elections; Ukraine; and Belarus, among other topics. "While Biden said he did not make any threats or give an ultimatum, he told Putin that the U.S. would respond if Russia attempted to interfere in its elections again and that there would be 'devastating' consequences if Navalny died while in prison." — Our Nahal Toosi has an analysis of the Biden and Putin meeting here. MORE HEADLINES — "A fan of aviator sunglasses, Joe Biden gifts Vladimir Putin a pair of his own," USA TODAY … "Biden gets heated during post-Putin press conference," by Nick Niedzwiadek … "Biden's vow of digital reprisals against Russia draws skepticism," by Martin Matishak … "Inside Vladimir Putin's £390m plane with gold-plated toilet as it arrives for Joe Biden talks," Daily Mirror POST-TRIP DEBRIEF — "Biden abroad: Pitching America to welcoming if wary allies," by AP's Jonathan Lemire and Aamer Madhani: "[W]hile Biden returned Wednesday night to Washington after a week across the Atlantic that was a mix of messaging and deliverables, questions remained as to whether those allies would trust that Biden truly represents a long-lasting reset or whether Russia's Vladimir Putin would curb his nation's misbehaviors." INFLATION WATCH — "A 'humble' Fed ramps up inflation forecast as prices jump," by Victoria Guida: "The Federal Reserve on Wednesday boosted its forecast for inflation this year by the largest margin since the pandemic rocked the economy, an acknowledgment that the recovery is heating up faster than the central bank anticipated. "Fed policymakers concluded two days of meetings by signaling for the first time that they could begin raising interest rates in 2023, but they kept borrowing costs near zero and stressed that they expect heightened inflation this year will come back down by 2022. Central bank officials are now forecasting an inflation rate of 3 percent … compared to their March projection of 2.2 percent." PANDEMIC LOSING STEAM — "Vaccine effort turns into slog as infectious variant spreads," by AP's Michelle Smith: "While two of the states slammed hardest by the disaster, California and New York, celebrated their reopenings this week with fireworks and a multimillion-dollar drawing, hospitalizations in parts of Missouri are surging and cases are rising sharply in Texas, illustrating the challenges the country faces this summer. "One major concern is the highly contagious and potentially more severe delta variant of the coronavirus that originated in India. While health officials say the vaccines are effective against it, the fear is that it will lead to outbreaks in states with lower vaccination rates. … At the same time, states are convening focus groups to better understand who is declining to get vaccinated, why, and how to convince them that getting the shot is the right thing to do." CONGRESS MORNING MANCHIN — "Manchin moves shake up Dem strategy for massive elections bill," by Laura Barrón-López, Marianne LeVine and Burgess Everett: "Manchin circulated a memo among his colleagues Wednesday that outlines his preferred changes to a proposal his party has billed as essential to prepare for the 2022 midterms. Manchin also organized a Zoom meeting this week with civil rights groups and a handful of Republican senators to find areas of agreement. "In an interview on Wednesday afternoon, Manchin said he'd done the best he could to put together a proposal he could support. He acknowledged party leaders might not go along: 'I couldn't vote for it in the form it is. Now, whether anybody is going to change it ... [the memo] might not, might not change their mind. I understand that and I respect that.'" — "Manchin outlines demands on voting legislation, creating an opening for potential Democratic compromise," WaPo HEADING TO BIDEN'S DESK — "Congress passes bill making Juneteenth a federal holiday," CNN | | | | A message from Amazon:   Watch what happened when Amazon raised their starting wage to $15/hr. | | | POLITICS ROUNDUP YOWZA — "In secret recording, Florida Republican threatens to send Russia-Ukraine 'hit squad' after primary rival," by Marc Caputo in Miami: "A little-known GOP candidate in one of Florida's most competitive congressional seats was secretly recorded threatening to send 'a Russian and Ukrainian hit squad' to a fellow Republican opponent to make her 'disappear.' "During a 30-minute call with a conservative activist that was recorded before he became a candidate, WILLIAM BRADDOCK repeatedly warned the activist to not support GOP candidate ANNA PAULINA LUNA in the Republican primary for a Tampa Bay-area congressional seat because he had access to assassins. The seat is being vacated by Rep. CHARLIE CRIST (D-Fla.), who is running for governor." IN S.C. — "South Carolina court halts executions until the state's new firing squad option is finalized," CNN: "The South Carolina Supreme Court on Wednesday halted executions in the state until procedures for its newest method of execution -- firing squad -- are finalized. Attorneys for BRAD KEITH SIGMON, who had been scheduled to be executed on Friday, successfully petitioned the state's high court to stay the execution due to South Carolina having only one method available, the electric chair." TRUMP CARDS DRIP, DRIP … "'Pure insanity': How Trump and his allies pressured the Justice Department to help overturn the election," by WaPo's Matt Zapotosky, Rosalind Helderman, Amy Gardner and Karoun Demirjian BOLTON, VINDICATED — "Justice Department drops Trump-era criminal probe and lawsuit related to John Bolton's book," CNN: "The Justice Department has closed a criminal investigation and dropped a lawsuit related to former Trump national security adviser JOHN BOLTON's book. The Trump-era criminal investigation had scrutinized whether Bolton's book illegally revealed national security information, while the lawsuit had sought to grab royalties from Bolton for publishing his book without full approval. "Bolton's attorney CHARLES COOPER applauded Biden's Justice Department for ending all of the legal proceedings against the Trump adviser-turned-political foe. Cooper said the cases appeared to be politically motivated." — Bolton's spokeswoman SARAH TINSLEY weighed in as well in a statement, calling the ruling "a complete vindication for Ambassador Bolton, and a repudiation of former President Trump's attempt, under the pretext of protecting classified information, first to suppress the book's publication and when that failed in court, to penalize the Ambassador. Trump openly admitted his desire to block publication of the book before the 2020 election for political reasons." MEDIAWATCH DAVID AND ANNA THROW IN THE TOWEL — "New Yorker Union Reaches Deal With Condé Nast After Threatening to Strike," by NYT's Katie Robertson: "The New Yorker Union and the unions representing two other Condé Nast publications, Ars Technica and Pitchfork, came to an agreement with the company on Wednesday … "The deal with Condé Nast includes base pay of $55,000 for employees at all three unions, rising to $60,000 by April 2023. Under the agreement, many employees at the three publications will receive wage increases of at least 10 percent … The agreement includes a cap on increases for health care costs and defined working hours. Contracts will also include a 'just cause' provision stating that managers must provide specific reasons before disciplining or firing employees." No word on whether New Yorker staff writers, who are not in the union, will finally get health care and other basic benefits. | | | | TUNE IN TO DISPATCH+ ON APPLE PODCASTS : POLITICO Dispatch, our daily podcast that cuts through the news clutter and keeps you up to speed on the most important developments of the moment, is expanding. In collaboration with the new Apple Podcasts Subscription platform, Dispatch+ launches this week! This new podcast gives premium Dispatch+ subscribers exclusive bonus weekly reporting and analysis from POLITICO's newsroom. Don't miss out, subscribe and listen to Dispatch+ on Apple Podcasts. | | | | | | | PLAYBOOKERS | | SABRE THE DAY — Just like the queen at the G-7, John McCarthy, special assistant to the president and senior adviser to Steve Ricchetti, sliced his birthday cake Wednesday with a sabre. McCarthy, a beloved figure in D.C. who turns 30 on Friday but, friends attest, is wise beyond his years, was toasted by Symone Sanders, the British Embassy's James Hooley and his former boss Rep. Brendan Boyle (D-Pa.), who quipped: "I used to work for John McCarthy, now I don't." McCarthy loves Ireland, so the party was decorated in green, white, and orange, the colors of the Irish flag. Drinks were poured in glasses with four-leaf clovers on them. Also spotted at the event: Reps. Eric Swalwell (D-Calif.) and Ruben Gallego (D-Ariz.), Greta Van Susteren, John Coale, Gloria Dittus, Jonathan Stahler, Annie Totah, Vinoda Basnayake, Dannia Hakki, Maha Hakki, Tommy Quinn, Lynly Boor, Bob Crowe, Storm Horncastle, Jim Moran, Kathleen Kennedy Townsend, Hilary Rosen, Helen Milby, Joe Crowley and Melissa Fitzgerald. Pic SPOTTED at a pre-soft opening dinner at La Bise, Ashok Bajaj's new French restaurant replacing the Oval Room, dining separately: Sen. Mark Warner (D-Va.), Terry and Dorothy McAuliffe, Manuel Roig-Franzia, and Lyndon Boozer and Karen Anderson. STYLE SECTION — It's National Seersucker Day, and Sen. Bill Cassidy (R-La.) will host his annual event in which senators and others are invited "to don their warm weather finest." The official photograph will take place at 12:30 p.m. Also on the RSVP list as of late Wednesday afternoon: Sens. Dianne Feinstein (D-Calif.), Cindy Hyde-Smith (R-Miss.), Deb Fischer (R-Neb.), Roger Wicker (R-Miss.), Tommy Tuberville (R-Ala.), Marsha Blackburn (R-Tenn.), Shelley Moore Capito (R-W.Va.), Amy Klobuchar (D-Minn.), Jacky Rosen (D-Nev.), Raphael Warnock (D-Ga.) and Mike Lee (R-Utah). TAKE ME OUT TO THE BALLGAME — Fox News' Guy Benson will throw out the first pitch at tonight's game in Atlanta between the Braves and the St. Louis Cardinals. He's interviewing Georgia Gov. Brian Kemp on his radio show in the afternoon before the game. SPOTTED at dinner Tuesday night at Joe's Seafood ahead of their meeting Wednesday with the VP: Texas state legislators Carol Alvarado, Royce West, Beverly Powell, Chris Turner, Nicole Collier, Senfronia Thompson and Rafael Anchía; Moses Mercado, Leo Muñoz, Jose Borjon and Marc Gonzales. MEDIAWATCH — The 19th is adding three breaking news reporters: Candice Norwood (previously at PBS NewsHour and a POLITICO alum), Orion Rummler (previously at Axios) and Jennifer Gerson (who's written for many outlets). Announcement — Sydney Baldwin has joined CNN as lead press representative for "At This Hour with Kate Bolduan," "CNN Newsroom with Ana Cabrera" and "CNN Newsroom with Alisyn Camerota and Victor Blackwell." She previously was a publicist for BuzzFeed News and HuffPost. FIRST IN PLAYBOOK — Skye Perryman is returning to Democracy Forward as the new president and CEO. She most recently was chief legal officer and general counsel at the American College of Obstetricians and Gynecologists. — Former USTR Robert Lighthizer is joining the board of directors of American Compass, along with Jonathan Baron and Neil Patel. TRANSITIONS — Jon Kott is joining Capitol Counsel as a partner. He most recently was a senior adviser to Sen. Chris Coons (D-Del.), and is a Joe Manchin alum. … Tony Hernandez is now deputy press secretary for Sen. Tim Kaine (D-Va.). He most recently was a comms associate at Time's Up, and is a Chuck Schumer alum. … Kristen Morris is now deputy comms director for Rep. Chris Pappas (D-N.H.). She most recently was comms director for his reelect. … Richard Buery Jr. has been named the CEO of the anti-poverty group Robin Hood. He is currently the CEO of Achievement First and is also the former deputy mayor of New York City. ENGAGED — Jacob Hawkins, executive director of the Herzog Foundation and a member of Team Haley, proposed to Lenze Morris, director at Targeted Victory and a Pete Snyder and RSLC alum, on Wednesday in her home state of Alabama. Pic WELCOME TO THE WORLD — Abby Harvey, senior comms associate with the BlueGreen Alliance, and Dan Carlson welcomed Juliet Mary Carlson on Tuesday. Pic HAPPY BIRTHDAY: Reps. Marcy Kaptur (D-Ohio), Scott Peters (D-Calif.), Brad Wenstrup (R-Ohio) and Jerry Carl (R-Ala.) … Newt Gingrich … Matt Canter of Global Strategy Group … Matt Miller of Vianovo … Alex Weprin … Jon Leibowitz of Davis Polk & Wardwell … Diane Blagman of Greenberg Traurig … Maxwell Nunes … CNBC's Christina Wilkie … CNN's Allie Malloy … Kent Lassman … Paul Steinhauser … Scott Thuman … Jennifer Myers … The Spectator's Dominic Green (51) … David Feinman … Craig Roberts … Gabe Horwitz … Chris Bedford of The Federalist … E&E News' Maxine Joselow … Business Roundtable's Jessica Boulanger … Katie Lingle ... Boris Abreu ... Katie Grant Drew ... The Daily Beast's Will Sommer ... CBS' Nicole Domenica Sganga ... Emily Adams ... PBS NewsHour's Jaywon Choe ... Michael Grisso ... Linda Chavez ... Chris Jennings … Melissa Sabatine ... Janice Lachance ... Katie Koenen Wright … Nora Taktajian of Rep. Jimmy Panetta's (D-Calif.) office (26) … former HHS Secretary Alex Azar … Chris Garcia … former Pennsylvania Gov. Tom Corbett … POLITICO's Elizabeth Kisiday … Laura Gordon … Kerri Chyka … Tory Burch 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 Amazon: It's not just Amazon employees who noticed the immediate benefit of increasing their starting wage to at least $15 an hour — a new study from the University of California-Berkeley and Brandeis University found that when Amazon raised its wages, the average hourly wage in the surrounding area rose by 4.7% as other employers followed their lead. Learn more about what else the research found. | | | | | | | Follow us on Twitter | | | | Subscribe to the POLITICO Playbook family Playbook | Playbook PM | California Playbook | Florida Playbook | Illinois Playbook | Massachusetts Playbook | New Jersey Playbook | New York Playbook | Brussels Playbook | London Playbook View all our political and policy newsletters | | Follow us | | | | |
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