| | | | |  | | By Katherine Tully-McManus | Presented by the National Association of Manufacturers | With an assist from Jordain Carney | 
Senate Energy and Natural Resources Committee Chair Joe Manchin (D-W.Va.) arrives for a markup on Capitol Hill July 21, 2022. (Francis Chung/E&E News/POLITICO) | MANCHIN MACHINATIONS — Joe Manchin sure can make waves, even from Covid isolation. The West Virginia Democrat and linchpin for the Democratic agenda stunned everyone by announcing a deal with Senate Majority Leader Chuck Schumer (D-N.Y.) on climate change policies, health care costs and tax policy. Manchin talked to POLITICO shortly after the deal was announced. Describing the dynamic between himself and Schumer: "It's like two brothers from different mothers, I guess. He gets pissed off, I get pissed off, and we'll go back and forth. He basically put out statements, and the dogs came after me again," Manchin said in an interview with Burgess on Wednesday. "We just worked through it." While talks were getting close last week, Manchin stayed mum: "I didn't know if it could come to fruition. I really didn't know, OK, so why talk about something, again, build people's hopes up? I got the ire of everybody." The agreement sets up potential passage next week of a $433 billion party-line spending bill that has been the elusive cornerstone to the Democrats domestic policy agenda. It includes roughly $370 billion in energy and climate spending, which climate hawks in the Senate are praising.
- Sen. Sheldon "Time to Wake Up" Whitehouse (D-R.I.): "Democrats are about to take the biggest, most serious step in congressional history to lead our only planet to safety in the race against climate change."
- Sen. Brian Schatz (D-Hawaii): "This will be the biggest climate action in human history. $370B for investments in clean energy, clean transportation, energy storage, farming, home electrification, and clean tech. The planet is on fire. Let's get it done."
The Manchin-Schumer deal also includes $300 billion in deficit reduction, three years of subsidies for Affordable Care Act premiums and prescription drug reform.
It would make changes to tax law that would raise $739 billion over the next decade. That would be enough to both offset the cost of the bill, while locking in more than $300 billion in revenue to cut the deficit, a priority for Manchin. The full Senate Democratic caucus is set to meet this morning. Many were as surprised as the rest of us when the deal dropped yesterday, now they'll have a chance to chew it over. One to watch: Keep an eye on Sen. Kyrsten Sinema (D-Ariz.), the other swing vote in the Dem caucus. She has previously opposed closing the carried interest tax break, which is included in the bill and affects investment managers. Reading list: See the deal for yourself with the 725-page bill text .
CAN THE HOUSE SWALLOW CHIPS? — The House is set to vote today on the Senate-passed bill aimed at boosting domestic semiconductor production and science and innovation. House Republicans plan to whip votes against the bill, Olivia reported last night . That is a pivot from earlier in the day when they said they wouldn't whip against. The shift was driven by the announcement of the Schumer-Manchin spending deal, which Republicans won't support. For some Republicans, progress on the chip policies were predicated on Democrats not moving forward with a party-line spending package on climate, taxes and health care. Reps. Dan Crenshaw (R-Texas) and Don Bacon (R-Neb.) both told Olivia they're leaning against voting for the bill because of the price tag, and Bacon cited the Senate Democrats spending deal as a "strike" against it. But Rep. Tom Cole (R-Okla.) was on board, as of last night. "You don't vote against something you support because something happens that you don't support — separate items that need to be dealt with separately," Cole said. "So no, I'll be very supportive of chips." The House Progressive Caucus meets this morning with Commerce Secretary Gina Raimondo, capping off days of talks between commerce and the progs. "I think we're in a good place," CPC Chair Primila Jayapal (D-Wash.) told reporters Wednesday. She described five days of "intense" conversations" with Raimondo about how Commerce would use its authority and how the funding would be spent on industrial manufacturing in the U.S. Jayapal dared Republicans to vote against it: "Let them. Let them explain to the country." She said Democrats can pass the measure on their own.
| | | | 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 . | | | | | GOOD MORNING! Welcome to Huddle, the play-by-play guide to all things Capitol Hill, on this Thursday, July 28, where you really, truly, never know what to expect. BURN PITS BILL FLAMES OUT — A bill intended to help military veterans who were exposed to toxic burn pits on deployment fell short Wednesday in the Senate, falling 55-42 in procedural vote that required 60 yeas. A very similar bill cleared the Senate in June by an 84-14 margin. Sen. John Cornyn (R-Texas) told reporters the dispute was over amendment votes, there are two amendments that Republicans want considered and Democratic leaders have not scheduled those votes. What is it?: The legislation would expand eligibility for VA health care and benefits to 3.5 million veterans who were exposed to burn pits since 9/11. It would add 23 illnesses to the list of diagnoses the VA presumes are connected to military service. That would end the need for veterans to try to prove to the federal government that their health problems are the result of their overseas deployments. Comedian Jon Stewart has been an advocate for passage of this bill and had planned to be at a celebratory press conference today ahead of a final passage vote and voiced his displeasure on Twitter: "6 trillion for war- No guidelines or oversight…but for Veterans Healthcare?? Let's play budget gimmick games. We live in the upside down." The press conference is still on the schedule but you can expect a very different tone. More from Jennifer Shutt at States Newsroom: U.S. Senate fails to advance burn pits bill for veterans in dispute over spending and Leo Shane at Military Times: New benefits for burn pit victims in limbo after Senate Republicans block plan | | | | A message from the National Association of Manufacturers: Manufacturers are driving our economy and helping to rebuild supply chains amid record cost increases and historic worker shortages. But tax increases on manufacturers pending before Congress do nothing to bring down costs, solve the workforce crisis or promote energy security. Learn why the National Association of Manufacturers is urging Congress to reject higher taxes at https://nam.org/taxaction. | | | | 
House Speaker Nancy Pelosi (D-Calif.) speaks during a press conference marking the 32nd anniversary of the Americans with Disabilities Act (ADA) on Capitol Hill July 26, 2022. (Francis Chung/E&E News/POLITICO) | PELOSI VS. CHINA — Speaker Nancy Pelosi's (D-Calif.) clash with the Chinese government over her planned trip to Taiwan is 30 years in the making. Pelosi had a major moment on the world stage when she was literally chased out of Tiananmen Square in 1991 after unfurling a banner paying tribute to the pro-democracy protesters who were killed there. And along the way, she's bucked her own party several times when it comes to getting tough on China, and has drawn Beijing's ire perhaps more than any American leader. This week, Pelosi opened up to POLITICO about her decades-long hawkishness toward China — which stands out in her record of progressivism on foreign policy. She's showing no signs of backing away from a trip to Taiwan, in what her allies say is a legacy play. "If you cannot stand up for human rights in China because of commercial interests, you lose all moral authority to speak out for it in any place," Pelosi told Andrew in an interview . "They promised one country, two systems — look what they did in Hong Kong. They made their own problem with Taiwan. If they had one country, two systems, they'd have something to sell."
| | | | INTRODUCING POWER SWITCH: The energy landscape is profoundly transforming. Power Switch is a daily newsletter that unlocks the most important stories driving the energy sector and the political forces shaping critical decisions about your energy future, from production to storage, distribution to consumption. Don't miss out on Power Switch, your guide to the politics of energy transformation in America and around the world. SUBSCRIBE TODAY . | | | | | PLAY BALL! — The Congressional Baseball Game is tonight, Republicans vs. Democrats at Nationals Park. Close to 20,000 fans are expected and more than $1.5 million has already been raised for Boys and Girls Clubs of America and The Washington Literacy Center. Capitol Police say they are ready with a "robust security plan" ahead of what are expected to be significant climate change-related protests with the intention of disrupting the charity game. But the size and impact of the protests are in flux, after last night's announcement of a deal struck between Schumer and Manchin for roughly $370 billion in energy and climate spending. Guess who is claiming to be the heroes of the Schumer-Manchin deal.
| | | Take me to Tallulah … Rep. Adam Schiff (D-Calif.) can't convince his family to get another dog, so Tallulah is filling the gap when he's in the office. He showed her off (with a high pitched dog/baby voice and everything) and came this close to missing an interview with NPR. Tallulah is innocent and not responsible for scheduling or press relations. QUICK LINKS More Black Women Than Ever Are Running for Congress and Governor , by Ella Ceron at Bloomberg Mandela Barnes gets open path to take on Wisconsin Sen. Ron Johnson , from Holly Otterbein and Marianne Lawmakers press Pentagon for answers as military recruiting crisis deepens , from Laura Seligman, Paul McCleary and Lee Hudson 4 Republicans who voted to impeach Trump face their moment of reckoning , from Ally Mutnick
| | | | A message from the National Association of Manufacturers:   | | | TODAY IN CONGRESS The House convenes at 10 a.m. and will vote on the Senate-passed CHIPS and Science Act and the Big Cat Public Safety Act, along with three bills under suspension of the rules. The Senate convenes at 10 a.m. At 1:45 p.m., lawmakers will vote on confirmation of Constance Milstein's nomination to be ambassador to Malta. AROUND THE HILL 9 a.m. House Select Modernization of Congress Committee hearing on innovative approaches to fixing Congress (Rayburn 2118). 11 a.m. Pelosi, Asst. Speaker Katherine Clark (D-Mass.), and other House Democratic women, hold a press conference on reproductive health care (Rayburn Room). 11:30 a.m. House Majority Leader Steny Hoyer (D-Md.), Reps. Joe Neguse (D-Colo.), Tom O'Halleran (D-Ariz.), Jimmy Panetta (D-Calif.), Kim Schrier (D-Wash.), Greg Stanton (D-Ariz.), Melanie Stansbury (D-N.M) hold a press conference on the Wildfire Response and Drought Resiliency Act (Studio A). Noon House Administration Committee holds a hearing on the independent state legislature theory and its "potential to disrupt U.S. democracy" (Longworth 1310). Noon Reps. Rashida Tlaib (D-Mich.), Andre Carson (D-Ind.), Ilhan Omar (D-Minn.) and others hold a press conference on next steps for family of killed Palestinian American journalist Shireen Abu Akleh (House Triangle).
| | | WEDNESDAY'S WINNER: John Grotta correctly answered that there was a concert fundraiser for Jerry Brown's presidential bid at the old Capital Center in Landover, Maryland, featuring The Eagles, Jackson Browne, Dan Fogelberg and Linda Ronstadt, who Brown was dating at the time. TODAY'S QUESTION from John: This president has a state named after him in a South American nation, where he is celebrated every November 12. Name the president and the South American country. The first person to correctly guess gets a mention in the next edition of Huddle. Send your answers to ktm@politico.com. GET HUDDLE emailed to your phone each morning. Follow Katherine on Twitter @ktullymcmanus
| | | | A message from the National Association of Manufacturers: The National Association of Manufacturers has led the charge against higher taxes on manufacturers. Undoing the progress achieved through tax reform—after which manufacturers kept their promises to raise wages and benefits, hire new workers and invest in their communities—would cost 1 million jobs in the first two years, according to NAM research. With Congress now considering proposals to raise taxes on manufacturers, the NAM is sending a clear message that higher taxes will do nothing to promote competitiveness or address rising costs and workforce shortages. Learn more at https://nam.org/taxaction. | | | | | | | Follow us | | | | |
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