| | | | | |  | | By Rachael Bade, Ryan Lizza, Eugene Daniels and Tara Palmeri | | | | | | |  | DRIVING THE DAY | | SCHUMER-MCCONNELL FACEOFF ON THE DEBT CEILING — CHUCK SCHUMER is about to double-dog dare MITCH MCCONNELL and his members to vote against a debt ceiling increase this fall. Just weeks after the minority leader implored his counterpart to tack a debt ceiling increase on to their party's massive reconciliation bill — lifting the $28 trillion borrowing cap without any GOP votes — Schumer instead is maneuvering to make Republicans squirm. The tentative plan: Tack the debt-ceiling hike on to a short-term funding bill designed to avert a government shutdown at the end of September, a move that would require GOP support. The Democratic leader is, in short, betting the GOP will cave rather than risk the blame for destabilizing an already shaky economy. The strategy — scooped Wednesday by our in-house budget gurus Caitlin Emma and Jennifer Scholtes — sets up a hugely consequential game of chicken between the two leaders. They won't have much time: Lawmakers will have only a few days to plot a path forward when they return from their summer recess in mid-September. Without an agreement, the government will shut down Oct. 1, and the Treasury could run out of money a few days after. The entire situation gives us flashbacks to when Republicans demanded spending cuts in return for raising the borrowing cap while BARACK OBAMA was in the White House. The brinkmanship led Standard & Poor's in 2011 to downgrade the nation's credit for the first time ever. Here's what each side is saying this time around … The view from the majority: Democrats note that McConnell in the past has been a broken record about never allowing the nation to default. They argue that Republicans dealt with the debt ceiling under DONALD TRUMP without a fuss. For the GOP to now say they want spending reforms in order to lift the cap after doing nothing of the sort the past four years, they argue, is disingenuous. For that reason — and the obvious economic risks — Democrats think McConnell's position is unsustainable and he'll have to cave. "To create a fake crisis … at this moment with this much going on in the world and this much going on in this country, with Covid and dealing with the variant, would be the epitome of irresponsibility," Sen. MARK WARNER (D-Va.) told reporters Wednesday. The view from the minority: Republicans say that they've staked out a clear position on this early, so they cannot be blamed for balking at the last minute. With inflation soaring, they argue, Democrats shouldn't be spending $3.5 trillion on a reconciliation package atop a $2 trillion pandemic package and another $1 trillion on infrastructure. They're loath to be seen as enabling what they view as an irresponsible spending spree when the nation's debt is already massive. Republicans also argue that Democrats easily have the power to act on this alone, and if they choose not to, it's their own fault. "They control the House and the Senate and the White House," said Sen. ROY BLUNT (R-Mo.). "It's easy for them to deal with if they want to." Sen. MITT ROMNEY (R-Utah) agreed, telling reporters that Democrats are "the ones massively adding to the debt. … There's no need for a compromise when they can do it by themselves." SO WHY WOULDN'T DEMOCRATS JUST USE RECONCILIATION? It's all about the moderates. Centrist Democrats are already having a hard time swallowing the $3.5 trillion price tag. Adding a debt ceiling increase would only lead them to demand a slimmer package, Democrats involved in the matter tell us. BOTTOM LINE: Each side is confident the other will blink. For the sake of the economy, hopefully one of them is right. Good Thursday morning. Thanks for reading Playbook. Drop us a line: Rachael Bade, Eugene Daniels, Ryan Lizza, Tara Palmeri. | | A message from Facebook: The internet has changed a lot since 1996 - internet regulations should too
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– Reforming Section 230 | | | DURING THE 2020 PRESIDENTIAL PRIMARIES, we had countless conversations with Biden campaign officials who warned that it was crucial to separate the social media conversation about Democratic politics from the conversations happening offline in early states. On Twitter, BERNIE SANDERS was marching to inevitable victory over JOE BIDEN, who allegedly wasn't much better than another four years of Trump. But in places like South Carolina Biden led in polls from start to finish, and trounced Sanders by almost 30 points. It became a cliche to say that Biden's unofficial campaign slogan was "Twitter isn't real life." In office, Biden and Bernie haven't been very far apart on policy, but the old electoral divisions have repeatedly resurfaced in campaigns this year, and we've been having a familiar conversation with folks in Biden world recently. Their take: The gap between the political Twitterverse and the real world is as wide as ever. SHONTEL BROWN, the winner of the special election primary in Ohio on Tuesday, had some 20,000 Twitter followers (it's grown a bit since then), while her Bernie-backed opponent, NINA TURNER, had almost half a million. And this wasn't a one-off election. The Bernie-ALEXANDRIA OCASIO-CORTEZ wing of the Democratic Party has now lost a Louisiana special election for a House seat, the Virginia gubernatorial primary, the New York City mayoral primary and this week's special election in Ohio. In the two special elections, the Bernie-AOC candidates actually outspent the Biden-aligned candidates. This comes as little surprise to top party strategists. As Sarah Ferris and Heather Caygle reported earlier this week, the DCCC is urging vulnerable members to "run as 'Biden Democrats.'" Meanwhile, as this familiar debate plays out, there's one political consulting firm that has been at the center of the moderate ascendancy: SKDK, which worked for the winning, come-from-behind candidates in both Louisiana and Ohio. Later this month, ANITA DUNN, one of Biden's closest advisers, will be returning to SKDK, solidifying its role as the go-to shop for Biden Democrats. — More: NYT's Alex Burns' post-Ohio analysis and Brown explains to the AP how she won the Ohio primary. | | | |   | | | BIDEN'S THURSDAY: — 9:30 a.m.: The president will receive the President's Daily Brief. — 11:30 a.m.: Biden and VP KAMALA HARRIS will meet with Asian American, Native Hawaiian and Pacific Islander civil rights leaders. — 3 p.m.: Biden will speak on the South Lawn about his administration's efforts on clean cars and trucks. — 4:30 p.m.: Biden will sign the bill to award Congressional Gold Medals to the Capitol Police and others who defended the Capitol on Jan. 6, in a ceremony in the Rose Garden. He and Harris will also deliver remarks. The White House Covid-19 response team and public health officials will brief at 11 a.m. Press secretary JEN PSAKI and Education Secretary MIGUEL CARDONA will brief at 1 p.m. THE SENATE is in. The chamber will vote on cloture for EUNICE LEE's judicial nomination an hour after it convenes. THE HOUSE is out. | | | | STEP INSIDE THE WEST WING: What's really happening in West Wing offices? Find out who's up, who's down, and who really has the president's ear in our West Wing Playbook newsletter, the insider's guide to the Biden White House and Cabinet. For buzzy nuggets and details that you won't find anywhere else, subscribe today. | | | | | | | PLAYBOOK READS | | | 
PHOTO OF THE DAY: People protest against New York Gov. Andrew Cuomo in New York City on Wednesday, Aug. 4. | Stephanie Keith/Getty Images | INFRASTRUCTURE YEAR DEMOCRATS EYE NEXT STEPS ON INFRASTRUCTURE — There's a lot of chatter in the Senate that Schumer will file cloture today to end debate on amendments to BIF and start the clock for the final votes on the infrastructure bill. His office isn't commenting, but a bunch of senators are flying to Wyoming on Friday for the funeral of the late Sen. MIKE ENZI. (The White House confirmed to us that after considering the trip, Biden will not be attending.) The thinking is that if the leader makes the move today, it will give members time to pay their respects, then be back in town Saturday when the post-cloture 30 hours of debate expires. In preparing for the move — and to head off GOP complaints that Democrats are cutting off debate too quickly — Schumer's office has been blasting out statistics showing that the chamber has voted on more amendments this year than in any of the past four years under GOP control. It's still TBD when we might see the vote on final passage. Technically, senators could keep debating well into next week due to arcane Senate processes. But if they all agree, they could wrap up as soon as Saturday. After that, Schumer is expected to file a motion to proceed to the budget resolution, putting 50 hours on the clock for debate before the massive vote-a-rama, where senators debate and vote on tons of amendments well past all of our bedtimes. Meanwhile, August recess is calling us all … ODD MAN OUT — "The Senate GOP's one-man infrastructure test case," by Burgess Everett and Marianne LeVine: "As the Senate's bipartisan infrastructure gang sticks together on the floor this week, JERRY MORAN is conspicuously on the outs. Among the group of more than 20 senators who weeks ago pledged to support a $550 billion deal on new infrastructure spending, Moran is the only one who voted against moving forward — twice. "And now, as the bill nears the finish line, colleagues in both parties are wondering where the affable two-term Kansas senator will come down. Moran's support isn't crucial to passing the bill, but the microscope on him reflects the ongoing push-and-pull between Senate Minority Leader Mitch McConnell's methodical, straightforward Republican Party and the chaotic, confrontational style of former President Donald Trump." LAST-MINUTE OBSTACLE — "Cryptocurrency tax changes spark clash between White House, key Democratic senator," by Kellie Mejdrich, Victoria Guida and Brian Faler: "Finance Committee Chairman RON WYDEN (D-Ore.), senior tax writer PAT TOOMEY (R-Pa.) and Sen. CYNTHIA LUMMIS (R-Wyo.) want to narrow who would be subject to new tax reporting requirements that are intended to improve tax compliance among those trading digital currencies. … "But the administration, which had advised the larger bipartisan group of lawmakers who put together the infrastructure plan, calls that bunk. It believes the industry is using scare tactics to try to water down the requirements … The unusual dispute, pitting the Senate's top tax writer against his colleagues in the administration, comes in what party leaders hope will be the final hours of debate over the plan." THE AMENDMENT PROCESS — "Sen. Joni Ernst targets Gov. Cuomo in amendment to infrastructure bill," N.Y. Post: "Sen. JONI ERNST (R-Iowa) targeted embattled New York Gov. ANDREW CUOMO (D) in an amendment to the bipartisan infrastructure bill which would prevent its funding from being allocated to states that are led by an individual that has sexually harassed their subordinates." CONGRESS FIRST IN PLAYBOOK — MICHAEL FANONE, one of the officers who defended the Capitol on Jan. 6 and gave an emotional testimony before Congress last week, covers the latest issue of Time, with a story written by Molly Ball: "The Aftermath: Why officer Mike Fanone won't let America forget Jan. 6" … The cover … The story SINEMA SPEAKS — "Unapologetically Moderate, Democrat Kyrsten Sinema Says She's Focused On Results," by NPR's Dana Farrington and Mary Louise Kelly: "To Sinema, a moderate, bipartisanship is the way Washington should work. 'We know that the American people are asking for us to take action,' she told NPR's All Things Considered. 'What they don't want to see is us sit on our hands, waiting until we get every single thing that we want. … That all-or-nothing approach usually leaves you with nothing.' … "To the larger consideration of whether Sinema's approach would help or hurt Democrats maintain control of Congress, Sinema said her focus is on 'getting stuff done.' Noting her nearly 20 years serving in public office, she said that in her experience, 'If you do the work and deliver results for the people that you represent, they'll continue to send you back to do that job.' … Although Sinema said she won't support a budget package of that [$3.5 trillion] size, she did not provide any response on what she thought an acceptable size would be." WHOSE POWER IS IT? — "Debate Over Presidential War Powers Sets Up Test for a Divided G.O.P.," by NYT's Catie Edmondson: "After espousing hawkish, interventionist positions for decades and almost uniformly backing the wars in Afghanistan and Iraq, the Republican Party is now grappling with political pressure to align itself more closely with the inward-looking 'America First' foreign policy articulated by Mr. Trump and backed by many conservative voters. It parallels similar foreign policy shifts Republicans have made in recent years to hew closer to Mr. Trump's views, including a move away from their support of free trade and a growing appetite for aggressive federal intervention to bolster American competitiveness against China." | | A message from Facebook: Why Facebook supports updated internet regulations
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See how we're taking action on key issues and why we support updated internet regulations. | | | THE WHITE HOUSE POLL OF THE DAY — "Biden Loses Ground On His Handling Of COVID-19 Response, Quinnipiac University National Poll Finds; Infrastructure Bill Gets A Thumbs Up By A 2 To 1 Margin," Quinnipiac: "Biden maintains a positive grade on his handling of the coronavirus response as Americans approve 53 - 40 percent … However, this is a double digit drop from a Quinnipiac University poll in May when Americans approved 65 - 30 percent." TODAY'S BIG ANNOUNCEMENT — "Carmakers, Biden to Roll Out Emission Cuts and EV Sales Goal," by Bloomberg's Ari Natter, Keith Laing, and Gabrielle Coppola: "The mandates, expected to cover the model years between 2023 and 2026, are a centerpiece of President Joe Biden's climate plans and mark his administration's first major effort to use regulation to stem planet-warming greenhouse gases. The limits are likely to fall short of what environmentalists have called for, while pleasing auto manufacturers." — More from Alex Guillén: "The 'car guy' president wants Americans to go electric" CALLING THEM OUT — "Biden changes his tune by getting confrontational with GOP governors over Covid spike," by CNN's Kevin Liptak and Jeremy Diamond: "When Republican governors began prematurely lifting coronavirus restrictions in their states earlier this spring, Biden and his team largely kept their heads down, ramping up vaccine distribution while steering clear of rhetorical battles with political adversaries. "But this week, as the Delta variant and low vaccination rates in several southern states sent cases soaring, Biden took a new approach: Castigating Republican governors who are standing in the way of mask and vaccine requirements — and calling out the governors of Texas and Florida in particular for enacting 'bad health policy.'" DEFENSE CHANGE INCOMING — "Biden plans shift in arms policy to add weight to human rights concerns," Reuters' Mike Stone and Patricia Zengerle: "Biden's administration is preparing an overhaul of arms export policy to increase the emphasis on human rights, a departure from Trump's prioritization of economic benefits to U.S. defense contractors, four people familiar with the initiative said." VEEP FILES — "Can Kamala Harris Solve the Vice-President Paradox?" by The Atlantic's Peter Nicholas KNOWING THE PRESS OFFICE — "These millennial and Gen Z staffers are part of Jen Psaki's 11-person army that keeps the White House on message," by Insider's Robin Bravender, Nicole Gaudiano and Kayla Epstein: "Their pay ranges from $62,500 to $180,000 a year … Each morning, the team gathers for meetings in Psaki's office — Wednesdays are bagel days — and they huddle for follow-up meetings later in the day as needed." With a person-by-person breakdown of who's messaging, flacking and spinning POLICY CORNER IMMIGRATION FILES — "Biden's vision for the border has gone bust. But what's Plan B?" by Sabrina Rodríguez and Anita Kumar: "The number of migrants apprehended at the border isn't going down this summer, even as the heat makes the journey to the U.S. more dangerous. Instead, it has reached a 21-year high — and there's a record number of unaccompanied children arriving, too. "As the administration, local officials, border agents and nonprofit leaders grapple with the day-to-day logistical challenges of apprehending and processing or expelling thousands of migrants, U.S. officials and immigration experts say they have theories but no concrete explanations for why the increase is happening now. Many see it as a confluence of destabilizing conditions, some new, some long-standing: a still-raging pandemic, worsening economic crisis and devastation from past natural disasters." VAX POPULI I — "U.S. plans to require COVID-19 shots for foreign travelers," by AP's Zeke Miller: "The requirement would come as part of the administration's phased approach to easing travel restrictions for foreign citizens to the country. No timeline has yet been determined, as interagency working groups study how and when to safely move toward resuming normal travel. Eventually all foreign citizens entering the country, with some limited exceptions, are expected to need to be vaccinated against Covid-19 to enter the U.S." VAX POPULI II — "Defense Secretary Weighs Recommending Vaccine Mandate for Troops," by NYT's Helene Cooper: "Defense Secretary LLOYD J. AUSTIN III will decide in the next few days whether to recommend that Biden make coronavirus vaccinations mandatory for the country's 1.3 million active-duty troops, military officials said, signaling a major move by the administration to harden the country's defenses against the highly contagious Delta variant." TRUMP CARDS HOW CLOSE WE CAME, PART CMLXVIII — "Top DOJ official drafted resignation email amid Trump election pressure," by Betsy Woodruff Swan and Nicholas Wu: "In early January 2021, one top Justice Department official was so concerned that then-President Donald Trump might fire his acting attorney general that he drafted an email announcing he and a second top official would resign in response. … Trump didn't fire [JEFF] ROSEN, and [PATRICK] HOVAKIMIAN's draft email — a copy of which was obtained by POLITICO — remained unsent." The draft email THE BEST PEOPLE — "Federal judge sanctions lawyers who challenged 2020 election results, calls claims 'fantastical,'" The Hill THIRSTY FOR ANSWERS — "A $5,800 Bottle of Japanese Whiskey Given to Mike Pompeo Is Missing," by WSJ's William Mauldin: "Japan's gift to Mr. Pompeo, worth $5,800, was received in June 2019 … While other gifts to Mr. Pompeo, including a silver falcon statue from the Saudi Arabian foreign minister, are marked as being transferred to the State Department's National Museum of American Diplomacy or elsewhere in the government, the whiskey is marked as 'disposition unknown.' "'The Department is looking into the matter and has an ongoing inquiry,' the State Department said in an annual report on foreign gifts to be published Thursday in the Federal Register. WILLIAM BURCK, a lawyer for Mr. Pompeo, said the former secretary of state had 'no recollection of receiving the bottle of whiskey and does not have any knowledge of what happened to it.'" POLITICS ROUNDUP CUOMO FALLOUT — "The Abandonment of Andrew Cuomo: Unions, Party Leaders and Deep Allies," by NYT's Dana Rubinstein and Katie Glueck: "The pillars of Mr. Cuomo's political base now appear to be cracking beneath him, as he suffers consequential defections from core constituencies, including labor, white suburban lawmakers and Black political leaders. "His only apparent hope is that, during the time it takes to draw up impeachment papers as the State Assembly advances its investigation, the reservoir of public good will he earned early in the pandemic will stifle the sentiment against him in the legislature and elsewhere. Certainly, in interviews on Wednesday across the state, not all voters saw the report as decisive." — "Majority of NY Assembly would oust Cuomo if he doesn't quit," AP … "CNN's Cuomo Conundrum: A Star Anchor With a Brother in Trouble," NYT BRUTAL FOR GLENN YOUNGKIN — "Ex-Carlyle Boss Racked Up Bad Bets Before Move to Politics," by Bloomberg's Heather Perlberg and Tom Maloney: "[P]eople close to the private-equity firm have been chafing over the picture Youngkin paints of his investing acumen and the circumstances of his departure. In his final decade there, he shepherded several bets and strategies that chalked up losses, and some of them are still being unwound." BEYOND THE BELTWAY WHOOPS — "Two House Democrats who broke quorum missing from Washington, D.C., reportedly vacationing in Portugal," by the Texas Tribune's Patrick Svitek and Cassandra Pollock | | | | SUBSCRIBE TO "THE RECAST" TODAY: Power is shifting in Washington and in communities across the country. More people are demanding a seat at the table, insisting that politics is personal and not all policy is equitable. The Recast is a twice-weekly newsletter that explores the changing power dynamics in Washington and breaks down how race and identity are recasting politics and policy in America. Get fresh insights, scoops and dispatches on this crucial intersection from across the country and hear critical new voices that challenge business as usual. Don't miss out, SUBSCRIBE . Thank you to our sponsor, Intel. | | | | | | | PLAYBOOKERS | | PERHAPS NOT A PLAYBOOKER YET, BUT HE'S CLOSE: "Rafael Nadal Falling In Love With D.C. Is The Rom-Com We Need," DCist BOOK CLUB — NYT reporter Jennifer Medina is writing a book about modern Latino political identity, via Penguin Press. STAFFING UP — Elizabeth Trudeau is the new principal deputy assistant to the secretary of Defense for public affairs. She's on detail from the State Department (most recently in Belfast), the first-ever career Foreign Service officer to hold the position at the Pentagon. — The White House announced multiple slates of new nominations, including: Mark Brzezinski as ambassador to Poland, Elizabeth Fitzsimmons as ambassador to Togo, Rebecca Gonzales as director of the State Department's Office of Foreign Missions, Brian Shukan as ambassador to Benin, David Young as ambassador to Malawi, Adriana Kugler as U.S. executive director of the International Bank for Reconstruction and Development and Oren Whyche-Shaw as U.S. director of the African Development Bank. — More nominations: Corey Hinderstein as deputy administrator for defense nuclear nonproliferation at DOE, David Honey as deputy undersecretary of Defense for research and engineering, Biniam Gebre as administrator for federal procurement policy at OMB, Andrew Fois as chair of the Administrative Conference of the U.S., Susan Tsui Grundmann as a member of the Federal Labor Relations Authority and Kurt Rumsfeld as general counsel of the Federal Labor Relations Authority. TRANSITION — Kory Kozloski is now campaign manager for Mandela Barnes' Senate bid in Wisconsin. He previously advised Barnes for the past several months, and is a DCCC and Democratic Party of Wisconsin alum. WELCOME TO THE WORLD — Lauren Smith, head of federal regulatory engagement at the self-driving car company Cruise and an Obama OSTP alum, and Adam Conner, VP for tech policy at the Center for American Progress, welcomed Zia Evelyn Conner on July 22. After a nine-day stay at the Georgetown NICU, daughter and mother are both home safe and sound. Pic — Varun Krovi, director at Invariant, and Reena Krovi, who works in finance, recently welcomed Ayaan Krovi. — Laura Geller, investigative reporter at WUSA9, and her husband Adam welcomed daughter Simone on July 28. Pic HAPPY BIRTHDAY: A.G. Sulzberger … Rep. Mike Doyle (D-Pa.) … Resident Commissioner Jenniffer González-Colón (R-Puerto Rico) … Rufus Gifford … Planned Parenthood's Alexis McGill Johnson … Ryan Wrasse of Sen. John Thune's (R-S.D.) office … Boston Globe's Jim Puzzanghera … Jeremy Flantzer … Matt Mandel … Kristofer Eisenla … Cary Gibson of Ascendis Pharma A/S … Cicely Simpson … Molly Donlin of Regent Strategies … Laura Chace of ITS America … Lisa Geller … Caroline Ehlich … Sharon Weber … Alicia Amling of Temerity Capital Partners … Matt Anderson of Blackstone … ABC's Luis Martinez … Michael Chandler ... Katie Vlietstra Wonnenberg of Public Private Strategies ... Colleen Fisher Simons … Facebook's Monique Dorsainvil ... Nicholas Rodman ... Scott Vance ... Julie Hughes … Ron Bouchard … Cambodian PM Hun Sen … Pete Snyder … former Nevada Gov. Brian Sandoval … VTDigger's Jim Welch 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. | | | | Sponsored Survey SHARE YOUR OPINION: Please take a short, 3-question survey about one of our advertising partners. | | | | | | | 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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