Tuesday, February 28, 2023

A skeptical SCOTUS eyes Biden’s student debt plan

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POLITICO Playbook

By Eugene Daniels, Rachael Bade and Ryan Lizza

Presented by

Emergent

With help from Eli Okun and Garrett Ross

Student debt relief advocates gather outside the Supreme Court on Capitol Hill in Washington, Monday, Feb. 27, 2023, ahead of arguments over President Joe Biden's student debt relief plan. (AP Photo/Patrick Semansky)

In just a few hours, President Joe Biden's student debt relief plan will come under the scrutiny of the Supreme Court. | AP

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DRIVING THE DAY

ELECTION DAY IN AMERICA — Polls open in less than an hour in Chicago, where Mayor LORI LIGHTFOOT faces eight rivals — and a very real chance of being shut out of the likely April 4 runoff election. A new poll from Victory Research finds the incumbent trailing both former Chicago Public Schools CEO PAUL VALLAS and Cook County commissioner BRANDON JOHNSON.

Our Jonathan Martin reports this morning from the Windy City, where sky-high civic anxiety over rising crime has put Lightfoot at risk of becoming the first mayor to lose reelection in 40 years. It’s “hardly just a Chicago story,” he writes, but Lightfoot’s prickly style has compounded her woes.

“When I asked Lightfoot if she had regrets, she didn’t hesitate. …‘We made mistakes.’ Yet she was quick to say she learned from those errors and, perhaps recognizing the voters she needs to mobilize, said she was judged more harshly as a Black woman. …

‘I remember RAHM EMANUEL appearing on the cover of Time magazine, the headline was basically like: “Tough guy for Chicago,”’ she recalled. ‘No woman or woman of color is ever going to get that headline.’” More from JMart

DEBT ON THE DOCKET — In just a few hours, President JOE BIDEN’s student debt relief plan will come under the scrutiny of the Supreme Court, whose justices will decide in the months following today’s oral arguments whether the $400 billion program is constitutional.

A lot more than debt relief for 40 million Americans is on the line. A broad ruling by the conservative high court might not only put a stake through Biden’s signature promise to young voters; it could cripple his plans to take executive action in other areas and leave federal policymaking more vulnerable to hostile states’ legal challenges.

The Biden administration will argue it has full authority to discharge student debt under a 2003 law, the HEROES Act, which gives the Secretary of Education power to grant relief during national emergencies. But opponents of the plan believe Biden’s plan stretches that statutory foundation way beyond its limits.

The result could be another expansion of the “major questions doctrine,” the basis for recent Supreme Court rulings striking down the EPA’s attempt to regulate power plants’ carbon emissions as well as pandemic-era mandates from the CDC and OSHA.

POLITICO education reporter Michael Stratford told us the merits of the case boil down to this: “Will conservatives on the court — who’ve been skeptical of some previous Biden-era pandemic policies — buy the administration’s argument that it needs to cancel student debt to help borrowers recover from the economic effects of the pandemic?”

One legal expert who has informally consulted with the White House on the debt cases told us last night, “I don't think it's easy to be confident about this court” when it comes to upholding agency decisions.

Yet the White House is feeling positive going into today’s arguments, believing that the plaintiffs won’t be able to show they were financially harmed by the Biden program. One case, brought by six Republican-led states, was already dismissed by a lower court for lack of standing; a second case brought by two students who are not fully eligible for loan relief faces similar questions.

“We’re confident we’re going to win because the other side doesn’t have standing,” one person familiar with the administration’s thinking texted us last night. The alternative, in any case, is chilling: Granting these litigants standing could open the door to a flood of future challenges to federal initiatives.

The political ramifications could be just as dire. While the relief plan garnered Biden lots of goodwill from key constituencies, an adverse decision would not leave the Biden administration with much of a plan B.

One debt-relief advocate put it this way: “At the end of the day, if they choose to send bills to 40 million people without canceling their debts first, Joe Biden is going to be the name on the bill.”

Good Tuesday morning. Thanks for reading Playbook. Drop us a line: Rachael Bade, Eugene Daniels, Ryan Lizza.

 

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PRIMETIME CHINA HEARING — The House Select Committee on China holds its first hearing this evening against a backdrop of rising trans-Pacific tensions, heightened by last month’s spy balloon revelations and recent speculation that China might overtly assist Russia with its invasion of Ukraine.

The committee, operating so far with bipartisan cooperation, is supposed to take a look at the range of economic, technological and military concerns posed by China over the next two years.

The 7 p.m. hearing will feature four witnesses:

  • H.R. McMASTER, retired Army lieutenant general and former national security adviser to President DONALD TRUMP
  • MATTHEW POTTINGER, former deputy national security adviser to Trump
  • TONG YI, Chinese human rights advocate 
  • SCOTT PAUL, president of the Alliance for American Manufacturing 

We got our hands on an exclusive excerpt from Pottinger’s testimony:

“Some policy pundits tend to see the [Chinese Communist Party] as a romantic partner who has been wronged, and who needs to be soothed and reassured and treated to ‘trust-building’ measures as a way of stabilizing the relationship. This is inaccurate. The CCP should be thought of as a hungry shark that will keep eating until its nose bumps into a metal barrier. Sharks aren’t responsive to mood music.

“But nor do they take it personally when they see divers building a shark cage. For them it’s just business. It’s what they do. The more resolutely and unapologetically we take steps to defend our national security, the more that boundaries will be respected and the more stable the balance of power is likely to be. … It does us little good to repeat again and again that we aren’t seeking a new Cold War when the CCP has been stealthily waging one against us for years.”

 

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BIDEN’S TUESDAY:

9 a.m.: The president will receive the President’s Daily Brief.

12:40 p.m.: Biden will leave the White House to head to Virginia Beach, Va., arriving at 1:45 p.m.

3 p.m.: Biden will speak at an event about protecting Americans from high health care costs.

4:25 p.m.: Biden will leave Virginia Beach to return to the White House, arriving at 5:35 p.m.

Principal deputy press secretary OLIVIA DALTON will gaggle on Air Force One on the way to Virginia Beach.

VP KAMALA HARRIS’ TUESDAY — The VP has nothing on her public schedule.

THE HOUSE will meet at 10 a.m. The Armed Services Committee will hold a hearing on U.S. military support to Ukraine at 10 a.m. The select committee on China will hold its first big primetime hearing at 7 p.m.

THE SENATE will meet at 10 a.m. and take up multiple judicial nominations throughout the day, with a recess from 12:30 p.m. to 2:15 p.m. for weekly conference meetings.

 

We’re spilling the tea (and drinking tons of it in our newsroom) in U.K. politics with our latest newsletter, London Playbook PM. Get to know all the movers and shakers in Westminster and never miss a beat of British politics with a free subscription. Don’t miss out, we’ve got some exciting moves coming. Sign up today.

 
 

PHOTO OF THE DAY

WASHINGTON, DC - FEBRUARY 27: U.S. Vice President Kamala Harris speaks during an event in the East Room of the White House marking Black History Month February 27, 2023 in Washington, DC. Black History Month honors the varied contributions of African Americans throughout U.S. history.  (Photo by Win McNamee/Getty Images)

VP Kamala Harris speaks during an event in the East Room of the White House marking Black History Month February 27, 2023 in Washington, DC | Win McNamee/Getty Images

PLAYBOOK READS

2024 WATCH

THE MORE THINGS CHANGE — “The ‘Always Trump’ voters are the defining feature of a crowded Republican primary,” by David Siders and Meridith McGraw: “Republican campaigns have calculated that they can’t afford to offend an entire swath of the GOP electorate still sympathetic to Trump. Instead, they’ve chosen to chip away at them through non-aggressive means.”

CHOOSE YOUR FIGHTER — “The Trump vs. DeSantis proxy battle shapes up with dueling CPAC vs. Club for Growth events,” by Natalie Allison and Alex Isenstadt: “While Donald Trump headlines CPAC’s large annual confab of activists, conservative media and firebrands in Washington, D.C., Ron DeSantis is set to be the main draw at the Club for Growth’s private retreat for donors in Palm Beach.”

“GOP stars flee CPAC,” by NBC’s Natasha Korecki and Jonathan Allen: “The abandonment of CPAC, which runs from Wednesday through Saturday, comes as its chairman, MATT SCHLAPP, defends himself against a lawsuit alleging that he fondled a male aide to then-Senate candidate HERSCHEL WALKER in Georgia in October, without the aide’s consent.”

HE HAS A PLAN FOR THAT — Trump’s campaign yesterday rolled out his trade platform, which notably calls for “universal baseline tariffs on most foreign products” and pulling China’s most favored nation status, NBC’s Alex Seitz-Wald reports.

ALL POLITICS

HOW CAMPAIGNS WORK NOW — “PACs poised to supercharge California Senate campaign,” by Jeremy White: “The once-in-a-generation contest for a California Senate seat could unleash a tsunami of outside spending as independent expenditure committees with unlimited fundraising powers work to differentiate Democrats jostling in an open field.”

THE WHITE HOUSE

TRUST DEFICIT — “Biden’s new deficit hawk persona has some progressives feeling some bad deja vu,” by Adam Cancryn: “Biden has leaned enthusiastically into the deficit focus, driven by what advisers described in large part as a political calculation aimed at bolstering his economic record, winning over middle-of-the-road voters, and bludgeoning the GOP over its own deficit-busting policies.”

VPOTUS ON THE ROAD — “VP Kamala Harris promises better internet for minority schools in SC visit,” by The Post and Courier’s Alexander Thompson in Columbia

QUOTE OF THE DAY — “From White House, Biden says ‘Black history matters,’” by AP’s Seung Min Kim: “He also paid tribute to the Divine Nine, the nine historically Black fraternities and sororities. Harris pledged one of them, Alpha Kappa Alpha, when she attended Howard University. ‘I may be a white boy, but I’m not stupid,’ Biden said, as the crowd laughed. ‘I know where the power is.’”

JUST POSTED — “Biden plans to defend health-care spending while ridiculing possible GOP cuts,” by WaPo’s Matt Viser

CONGRESS

COUNTDOWN TO VETO — Could we be in for the first veto of Biden’s presidency? Sen. JOE MANCHIN (D-W.Va.) told CNN’s Ted Barrett that he would support a Republican-led effort to undo a local D.C. law lowering mandatory minimum sentences for some violent crimes. With Sen. JOHN FETTERMAN (D-Pa.) hospitalized, and the bill expected to come up for a vote in the Senate soon, that could be enough to send the legislation to Biden’s desk.

The White House, which has opposed the Senate bill without explicitly threatening a veto, may soon have to make a tough decision, NYT’s Carl Hulse reports. Most Democrats don’t think Congress should be able to overturn D.C. laws, but the sentencing changes are controversial, and Republicans are expected to hit Biden on crime through the campaign next year.

NOT HAPPENING TODAY — A Senate Foreign Relations Committee meeting to take up ERIC GARCETTI’s nomination as U.S. ambassador to India, among others, was postponed to next week, as Sen. MARCO RUBIO (R-Fla.) has put a hold on them, Marianne LeVine scooped.

STILL HAPPENING TODAY — “Gang of 8 to be briefed on Trump, Biden and Pence documents,” by CBS’ Rebecca Kaplan, Kathryn Watson, Olivia Gazis and Robert Legare

SACRED COWS MOOING — “A bipartisan group of Senators is talking about raising the retirement age on Social Security,” by Semafor’s Joseph Zeballos-Roig: “Other options on the table include changing the existing formula that calculates monthly benefits from one based on a worker’s average earnings over 35 years to a different formula that’s based instead on the number of years spent working and paying into Social Security.”

HANGIN’ AROUND THIS TOWN — “Pelosi, Hoyer and Clyburn have stepped down — but not aside,” by Nick Wu: “House Democrats have experienced some growing pains as their old guard of leaders hang on, supporting their successors but also not totally letting go. Yet lawmakers insist it’s working, in its own weird way.”

HOLDING SPACE — “Quieter Senate gives Fetterman recovery room,” by Burgess Everett, Marianne LeVine and Daniella Diaz

APPROPS WATCH — “House GOP mulls putting ‘woke’ earmarks on chopping block,” by Roll Call’s Paul Krawzak and Aidan Quigley

TRAIN WATCHDOGS — “Lawmakers Propose Legislation to Tighten Rail Safety Regulations,” by NYT’s Stephanie Lai

 

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JAN. 6 AND ITS AFTERMATH

LORDY, THE TAPES — “Top Republicans question McCarthy over release of January 6 footage as speaker vows deliberate approach,” by CNN’s Melanie Zanona, Manu Raju and Alayna Treene: “Speaker KEVIN McCARTHY faced questions from his leadership team Monday night over his plans to publicly release security footage from January 6, 2021, multiple sources told CNN – a process that he said could take some time to disseminate widely even as Fox News host TUCKER CARLSON has had an early glimpse.”

THE FULTON COUNTY PROBE — “Judge overseeing Trump Georgia grand jury speaks after foreperson’s controversial interviews,” by ABC’s Olivia Rubin: “[J]urors ‘can talk about the final report.’ But Judge ROBERT C. McBURNEY noted the matter can get ‘problematic’ if jurors start to ‘synthesize the testimony’ and the group’s thoughts on it.”

POLICY CORNER

FROM LEGISLATION TO REALITY — After passing several big-ticket pieces of legislation last Congress, Democrats and the Biden administration are toiling on their implementation:

  • Chips: The Biden Administration is forcing semiconductor chip manufacturers to tamp down stock buybacks and share some profits with the government in order to get massive new federal funds, report Jim Tankersley and Ana Swanson, part of “an aggressive attempt by the federal government to bend the behavior of corporate America to accomplish its economic and national security objectives.”
  • Infrastructure: The FAA yesterday announced almost $1 billion that’s heading to nearly 100 airports across the country, per Reuters.
  • Climate: Biden’s massive investments in clean energy could be hampered by the country’s tight labor market, as crucial manufacturers and construction companies struggle to find enough workers, Zack Colman reports.

THAT WAS FAST — This weekend, the NYT published a major investigation into migrant children being used as laborers across the country. Yesterday, the Biden administration announced new policy moves aimed at rooting out such illegal practices, Hannah Dreier reports, including Labor Department and HHS investigations as well as an effort to have Congress raise penalties for violating child labor laws.

AD ASTRA — “Democrats step up pressure on Biden to reverse Trump’s decision on space HQ,” by Connor O’Brien and Lee Hudson

UP IN THE AIR — “Inspector general investigating Pete Buttigieg’s extensive private jet travel after Fox News Digital report,” by Fox News’ Thomas Catenacci

AMERICA AND THE WORLD

PULLOUT FALLOUT — A new Special Inspector General for Afghanistan Reconstruction report blames the instant fall of the Afghan government in part on a poor U.S. pullout and long-term issues with U.S. aid oversight, WSJ’s Ben Kesling scooped. The document lays fault at the feet of every U.S. administration from GEORGE W. BUSH to Biden, as well as Afghan officials. SIGAR also criticized Defense Department officials for not fully cooperating with the investigation.

WHERE THE WAR ON TERROR STILL FLARES — “U.S. Commandos Advise Somalis in Fight Against Qaeda Branch,” by NYT’s Eric Schmitt in Baledogle, Somalia: “The visit offered a window into a counterterrorism world in which a small number of Americans, usually far from the front lines, are advising and assisting Somali troops waging a ferocious daily fight against a formidable foe.”

IMMIGRATION FILES — “Struggling with U.S. asylum app, migrant families split at border,” by Reuters’ Daina Beth Solomon and Ted Hesson with a Mexico City dateline

MEDIAWATCH

MORE SHOCKING DOMINION/FOX REVELATIONS — “Murdoch and other Fox execs agreed 2020 election was fair but feared losing viewers, court filing shows,” by Josh Gerstein and Kyle Cheney: “Fox News executive chair RUPERT MURDOCH admitted in a deposition that some Fox News hosts endorsed President Donald Trump’s baseless claims of widespread fraud in the 2020 election … [The filing] portrays senior executives at the network as widely in agreement that their network shouldn’t help Trump spread the false narrative. Yet, they repeatedly wrestled with how firmly to disavow it without risking their Trump-friendly audience.”

THE GRAY LADY IN BLACK AND WHITE — “Inside the New York Times Blowup Over Transgender Coverage,” by Vanity Fair’s Charlotte Klein

PANDEMIC

ORIGIN STORY — News that the Department of Energy had shifted its assessment to favor a lab leak as the likeliest origin of the coronavirus pandemic rocketed around the right yesterday: Several Republican lawmakers called on the Biden administration to declassify more information related to Covid, WSJ’s Josh Chin, Lindsay Wise and Annie Linskey recap. Rep. MIKE GALLAGHER (R-Wis.) said he wants congressional action in the absence of a probe into the Chinese lab in question.

But the White House emphasized that the federal government still has reached no conclusive determination, with different agencies leaning in different directions. And CNN’s Jeremy Herb, Natasha Bertrand, Zachary Cohen and Pamela Brown report that in the U.S. intelligence community, the lab leak theory is still a minority view. WaPo’s Joby Warrick, Ellen Nakashima and Shane Harris provide valuable new details about how DOE changed its mind, thanks to “a little-known scientific team that conducts some of the federal government’s most secretive and technically challenging investigations of emerging security threats.”

Related read: “Disinformation Inc: Government-backed group tried to punish sites boosting COVID lab leak theory,” by the Washington Examiner’s Gabe Kaminsky

MISCELLANY

PLAYBOOK METRO SECTION — “Daniel Snyder’s demands anger NFL owners, renew talk of voting him out,” by WaPo’s Mark Maske, Nicki Jhabvala and Liz Clarke … “Jeff Bezos Remains in Running for Washington Commanders,” by Front Office Sports’ A.J. Perez: “One of those sources said that news that Snyder wouldn’t sell to [JEFF] BEZOS amounts to a ploy to get a high bid out of the Amazon founder.”

 

JOIN POLITICO ON 3/1 TO DISCUSS AMERICAN PRIVACY LAWS: Americans have fewer privacy rights than Europeans, and companies continue to face a minefield of competing state and foreign legislation. There is strong bipartisan support for a federal privacy bill, but it has yet to materialize. Join POLITICO on 3/1 to discuss what it will take to get a federal privacy law on the books, potential designs for how this type of legislation could protect consumers and innovators, and more. REGISTER HERE.

 
 
PLAYBOOKERS

Joaquin Castro had cancerous gastrointestinal neuroendocrine tumors removed, but expects to have a good prognosis after a weekslong recovery.

Ketanji Brown Jackson will have a Miami street named in her honor.

Rupert Murdoch is thinking about getting married for the fifth time.

Roger Williams befuddled Kevin McCarthy with an unusual floor objection.

Barack Obama is launching a program to build a national network of young leaders.

FIRST IN PLAYBOOK — Courtney Parella is now comms director for the Congressional Leadership Fund and American Action Network. She previously was a regional press secretary at the NRCC.

Former Rep. Andy Levin (D-Mich.) wil be a distinguished senior fellow at the Center for American Progress, with an emphasis on linking economic and democratic strength.

Jennifer Kohl has launched Chrysalis Communications, a new strategic comms agency. She previously was senior director at Purple Strategies and is an Obama campaign, FDA and Elijah Cummings alum.

Sam Paisley is now comms specialist at New Deal Strategies. She previously was press secretary for Sen. Jeanne Shaheen (D-N.H.).

Virginia Gov. Glenn Youngkin will speak at the Heritage Foundation’s 50th anniversary reception April 20 at George Washington’s Mount Vernon.

MEDIA MOVES — Bruce Dixon and Hozefa Lokhandwala will be the next co-chief executives at Vice Media, per the NYT. They previously were chief financial officer and chief strategy officer, respectively. … Maria Cristina Curi is joining Axios to launch a new tech policy newsletter. She most recently has been a reporter at Bloomberg Law.

NEW NOMINEES — The White House announced that Biden will nominate Vernelle Trim FitzPatrick as ambassador to Gabon and William Popp as ambassador to Uganda.

WHITE HOUSE ARRIVAL LOUNGE — Hansen Mak is now director of budget review and assessment at the White House’s Office of the National Cyber Director. He most recently was deputy assistant director for regional planning and program design at the Defense Security Cooperation Agency.

TRANSITIONS — Michael Ricci is now a partner at Seven Letter. He was previously director of communications for Maryland Gov. Larry Hogan and is a Paul Ryan and John Boehner alum. The firm has also named Kobina Yankah creative director for Seven Letter Labs. He is a DCCC and American Bridge alum. … Andrea Young is now counsel to FEC Chair Dara Lindenbaum. She most recently was a voter protection adviser at the DSCC and is a Biden campaign and DNC alum. …

Rachel Pearson has launched The Complete Agency, formerly known as Pearson & Associates. The firm has added Doug Calidas, Allison Haindfield and Toby Tyler Douthat as counsel. Calidas previously was chief of staff to Sen. Amy Klobuchar (D-Minn.). Haindfield previously was director of operations and scheduling for Sen. Deb Fischer (R-Neb.). Douthat previously was deputy comms director for Sen. Lindsey Graham (R-S.C.). … Michael Tadeo is now a senior media relations adviser at TC Energy. He previously was a senior adviser for Rep. Bill Johnson (R-Ohio) and is a Trump DOE alum.

HAPPY BIRTHDAY: NYT’s Paul Krugman, Lisa Lerer and Meredith Kopit Levien Ira Forman ... WaPo’s Sarah Ellison ... Steven Chu ... Chris Keppler … Raben Group’s Joanne IrbyPorter DeLaney ... John Nagl ... POLITICO’s Charlie Mahtesian Andrea Riccio … Manhattan Institute’s Kelsey Bloom ... Christiana Purves ... Ken Blackwell ... Pete Williams Jack Abramoff Heather Fluit of ICF Next … Brendan Kelly ... Adam Sieff … Food for the Hungry’s Kristen CallawayMark LippertWill May Adrian Durbin … Amazon’s Cara Hewitt ... Tom Hussain Tiffany Haas of the Senate HELP Committee … Ned RyunDrew Ryun Trinity Hall of Sen. Chris Coons’ (D-Del.) office … Alivia P. Roberts Jessica Chau of Rep. Summer Lee’s (D-Pa.) office

LEAP DAY BIRTHDAYS: Rep. Ben Cline (R-Va.) … former Rep. Bart Stupak (D-Mich.) … Caitlin Kovalkoski … POLITICO’s Kate Irby and Pamela King Alexandra WhiteEnid Doggett of INSPR Media … Craig KennedyEugene Volokh … Greenbrier Partners’ Adrian Durbin … Messina Group’s Gabrielle Quintana Greenfield

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