Tuesday, May 16, 2023

Dems recoil as Biden eyes a deal

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POLITICO Playbook

By Eugene Daniels, Rachael Bade and Ryan Lizza

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With help from Eli Okun and Garrett Ross

President Joe Biden departs after having lunch with family at Vietnam Cafe in Philadelphia.

Democrats have fought for years to fend off new restrictions on eligibility for programs such as SNAP, and Biden’s musings to reporters Sunday about how he supported work requirements in his past life as senator were none too welcome. | Patrick Semansky, File/AP Photo

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DRIVING THE DAY

DEVELOPING OVERNIGHT — “Russia launches ‘exceptional’ air attack in Kyiv with drones, missiles,” by AP’s Samya Kullab

ELECTION DAY IN AMERICA — Our colleagues Steven Shepard, Zach Montellaro, Holly Otterbein, Madison Fernandez and Gary Fineout are up this morning with a preview of the primary races that you need to watch today: “5 things to watch in Tuesday’s primary elections in Kentucky, Pennsylvania and Florida”

Key questions: Who will emerge from a messy Kentucky primary to take on a popular Democratic governor? … Will national progressives notch another win in the Philly mayor race? … Can national Republicans sideline an election-denier seeking to join the Pennsylvania Supreme Court? … Will a Democrat take control of Florida’s largest city?

WHAT TOMMY TUBERVILLE IS READING — “Biden administration may halt plans to move Space Command to Alabama over state's abortion law, officials say,” by NBC’s Courtney Kube and Carol Lee

CAVE MAN? — President JOE BIDEN is known for saying what’s on his mind. Some aides call that his superpower. Others just count the headaches it causes.

So it has gone since Biden on Sunday hinted he might be okay with adding new work requirements to federal aid programs such as SNAP (food stamps) and TANF (cash aid for families) in order to cut a deal with Republicans to raise the debt limit.

The White House rushed to clean it all up, but even the cleanup spooked Democrats elsewhere in Washington who fear that Biden — suddenly in dealmaking mode after spending months insisting he would not negotiate with Republicans — would sell out some of America’s most vulnerable.

First, though, the 30,000 foot view: Today, Biden is set to meet with congressional leaders at 3 p.m. to continue debt-limit talks. Treasury Secretary JANET YELLEN reiterated yesterday that the government could run out of cash as soon as June 1, and House Speaker KEVIN McCARTHY spent the day pooh-poohing the Biden administration’s weekend claims of progress, maintaining the sides are “still far apart.”

Translation: They’re running out of damn time. 

The White House continues to say these negotiations aren’t on the debt ceiling but on spending and budget with the debt ceiling sort of attached. As our colleagues Adam Cancryn, Jennifer Haberkorn and Jonathan Lemire report, “that appears to be a distinction without an actual difference. Concessions are being made.”

— Here’s what Biden wants, according to the trio: (1) that the GOP “drop its effort to roll back parts of Biden’s key legislative accomplishments, like the Inflation Reduction Act, as well as take student debt relief off the table”; (2) to limit any spending caps “to as little as two years”; and (3) a debt-ceiling extension “of at least two years — through the 2024 election.

— Here’s where he’s willing to give: (1) accepting discretionary spending caps through the remainder of his term; (2) “clawing back billions of dollars in pandemic aid once seen as critical to the agenda”; and (3) possible “restrictions on certain safety net programs for the poor.”

That last point is what has sent Democrats into a tizzy. They’ve fought for years to fend off new restrictions on eligibility for programs such as SNAP, TANF and Medicaid, and Biden’s idle musings to reporters Sunday during a Rehoboth Beach bike ride about how he supported work requirements in his past life as senator were none too welcome.

“We did not elect Joe Biden of 1986,” Rep. PRAMILA JAYAPAL (D-Wash.), the chair of the Congressional Progressive Caucus told us yesterday. “We elected Joe Biden of 2020.”

Jayapal called the idea of adding work requirements to SNAP “an absolutely terrible idea” and “a nonstarter for many of us across the Democratic caucus.”

To her and many others we spoke to yesterday, it would constitute a betrayal to Black and Brown communities and people living in poverty. It would also be a betrayal, they say, to how Biden has operated as president so far.

 

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The pushback is coming from many fronts. Even before Biden’s comments, civil rights leaders sent a letter to the administration demanding the administration keep the programs intact.

Hanging over everything are memories of the 2011 debt limit standoff, when Biden as VP negotiated a deal with Senate Republican Leader MITCH McCONNELL that many Democrats felt was simply too generous to the GOP. Those anxieties are only rising as McCarthy pushes to get other Democrats out of the room for a one-on-one negotiation.

White House aides bristle at any insinuation that Biden is ready to cave. “The White House, unequivocally, is pushing in negotiations against those work requirements,” one official said in a late-night call, adding that administration officials “have pushed to take them off the table.”

Yet they are still on the table, and the official stopped short of saying that it’s a red line for the president.

One place where Biden and his deputies have been clear is in ruling out new Medicaid restrictions, but their insistence there has only highlighted the wiggle room they appear to have in ratcheting back other federal programs — and Democrats outside the White House have been listening to those statements closely.

“He just has to say, there's no room for this,” Jayapal said. “It's against our democratic values. It's against everything I fought for in my first two years in office. And we're not going to entertain letting people go hungry in this country.”

The reality is, however, any debt-limit deal is going to come together in the center — without the support of the leftmost Democrats or rightmost Republicans. And the official acknowledged that Biden’s comments were meant in part as a reality check: “We're not going to get everything we want, but that doesn't mean that we are going to give away the storefront either.”

Just posted: Sarah Ferris and Nicholas Wu report on a pack of moderate Dems who are privately preparing to shield McCarthy from a conservative backlash in order to get a debt compromise passed. “We’ll protect him if he does the right thing,” one of the House Democrats involved said, describing a scenario where the hard right calls a floor vote to oust McCarthy as speaker. That Democrat added that McCarthy himself has been briefed on the discussions.

The view from the right: “Intensifying debt talks threaten rare GOP unity,” by Burgess Everett and Olivia Beavers: “The House’s bill is the ceiling for conservative priorities on a debt deal, and Senate Republicans are hoping their lower chamber colleagues will show some flexibility.”

Inside the talks: “GOP rejected White House effort to close tax loopholes in debt ceiling talks,” by WaPo’s Jeff Stein: “On a phone call last week, senior White House officials floated about a dozen tax plans to reduce the deficit as part of a broader budget agreement with House Republicans, including a measure aimed at cryptocurrency transactions and another for large real estate investors.”

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

 

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DURHAM CALLS BULL — Special counsel JOHN DURHAM released his report on the FBI’s Trump-Russia probe, accusing the FBI of a double standard for aggressively probing DONALD TRUMP’s 2016 presidential campaign while soft-pedaling similar claims about foreigners seeking influence over Democratic candidate HILLARY CLINTON, our colleagues Josh Gerstein and Betsy Woodruff Swan write.

The details: “Durham’s long-awaited, 306-page report slams the FBI’s handling of the Trump-Russia probe as deeply flawed. But Durham’s investigation into the origins of that probe resulted in few criminal charges, and the release of his report is unlikely to offset his high-profile failures in court. He charged just three defendants during his four-year investigation; juries quickly acquitted two of them, while a third pleaded guilty and avoided prison time.” Read the full report

Of note: “Attorney General MERRICK GARLAND received the report on Friday afternoon, read it over the weekend, and sent copies of it to Capitol Hill Monday afternoon, a senior Justice Department official said. While following through on his promise to make Durham’s report public, Garland released no comment indicating whether he agreed or disagreed with any or all of its conclusions, although his letter transmitting it to Congress stressed that he had not intervened to block any action Durham sought to take during his inquiry.”

Thought bubble: Garland’s handling of the Durham report provides something of a precedent for how he may handle the forthcoming investigation by special counsel JACK SMITH.

ANTHONY COLEY, DOJ’s former head of public affairs, put it to us this way: “Unless Jack does something that is inconsistent with the norms and practices of the Dept — highly unlikely given Jack’s reputation — AG Garland will respect Jack’s decision, whatever it is, and allow it to stand.”

More reading: “Takeaways from the Durham report on the Trump-Russia probe,” by Josh and Betsy … “Jim Jordan Invites John Durham To Testify After DOJ Releases Report,” by the Daily Caller’s Henry Rodgers …“Report on FBI’s Trump-Russia investigation: Some problems but not the ‘crime of the century,’” by AP’s Eric Tucker

BIDEN’S TUESDAY:

9:30 a.m.: The president will receive the President’s Daily Brief.

3 p.m.: Biden will meet with Speaker KEVIN McCARTHY, Senate Majority Leader CHUCK SCHUMER and House Minority Leader HAKEEM JEFFRIES, with VP KAMALA HARRIS also in attendance.

4:30 p.m.: Biden, first lady JILL BIDEN and second gentleman DOUG EMHOFF will deliver remarks at a celebration of Jewish American Heritage Month, with Harris also in attendance.

Press secretary KARINE JEAN-PIERRE will brief at 1:45 p.m.

HARRIS’ TUESDAY:

1:20 p.m.: The VP will convene a roundtable with young men of color small business owners and entrepreneurs.

6:45 p.m.: Harris will deliver remarks at the We Are EMILY Gala, with Emhoff also in attendance.

THE HOUSE will meet at 10 a.m. Education Secretary MIGUEL CARDONA will testify before the Education and Workforce Committee at 10:15 a.m. The Foreign Affairs Committee is holding a markup at 10 a.m. on a number of bills, including two bills calling on Russia to release imprisoned Americans EVAN GERSHKOVICH and PAUL WHELAN.

THE SENATE is in. The Banking Committee will hold a hearing on the failure of Silicon Valley Bank at 10 a.m., with testimony from former Silicon Valley Bank and Signature Bank executives. Secretary of State ANTONY BLINKEN, Defense Secretary LLOYD AUSTIN and Commerce Secretary GINA RAIMONDO will testify before the Appropriations Committee at 2 p.m.

 

INTERNATIONAL REPUBLICAN INSTITUTE HONORS “WOMEN OF IRAN”: POLITICO is proud to partner with the International Republican Institute (IRI) in support of this year’s John S. McCain Freedom Award to the “Women of Iran.” As IRI’s highest honor, the Freedom Award exemplifies the goals and accomplishments of strengthening democracy for a freer, more secure world. In celebration of IRI's 40th anniversary, the Institute is highlighting many courageous women across the globe who are on the front lines in the fight for freedom. Don’t miss an opportunity to support and empower women leaders who are fearlessly advancing democracy worldwide. 

 
 

PHOTO OF THE DAY

A Secret Service agent looks on as President Joe Biden attends his granddaughter Maisy Biden's commencement ceremony at the University of Pennsylvania in Philadelphia.

A Secret Service agent looks on as President Joe Biden attends his granddaughter Maisy Biden's commencement ceremony at the University of Pennsylvania in Philadelphia on Monday, May 15. | Patrick Semansky/AP Photo

PLAYBOOK READS

2024 WATCH

PENCE’S POSSE — Former Texas Rep. JEB HENSARLING and veteran Republican strategist SCOTT REED will co-chair the Committed to America PAC, which is backing an expected MIKE PENCE presidential bid, our colleagues Adam Wren and Daniel Lippman scooped last night, breaking the news before the information was given to multiple other outlets on embargo.

DeSANTIS DIGS IN — Florida Gov. RON DeSANTIS is calling his top donors to Miami next week as he prepares to jump into the GOP presidential primary, Alex Isenstadt reports. “The invitations — which were described by two people familiar with the discussions — request that donors be present from May 24-26. By law, DeSantis can not directly receive or solicit contributions for a presidential campaign unless he has formally launched his bid.”

Meanwhile, the fallout from DeSantis’ star turn in Iowa this weekend is continuing. On Saturday, Trump rolled out an extensive list of endorsements from the state as he sought to burnish his reputation, “but at least three people on the list tell Axios they were not consulted and remain undecided,” Zachary Basu and Sophia Cai report, and that former congressional candidate GARY LEFFLER was alerted to his inclusion “while he was attending DeSantis' event.”

Staffing up: DeSantis press secretary BRYAN GRIFFIN is leaving his role in the governor’s office to join DeSantis’ political operation, Fox News’ Elizabeth Elkind and Matt Leach report.

HALEY’S COMMENTS — NIKKI HALEY’S financial disclosure report shows the former US ambassador to the United Nations was paid between $100,001 and $1 million each for 12 speaking engagements in 2022 and 2023,” CNN’s Kate Sullivan and Fredreka Schouten report.

ELECTORAL NON-COLLEGE — “No Degree? No Problem. Biden Tries to Bridge the ‘Diploma Divide,’” by NYT’s Zolan Kanno-Youngs in Philadelphia

THE WHITE HOUSE

BEHIND THE BIDENS — “Biden’s latest financial disclosure lists book royalties, bank interest,” by WaPo’s Azi Paybarah and Toluse Olorunnipa … Take a look at the disclosure

CONGRESS

TERRIFYING STORY — Staffers for Rep. GERRY CONNOLLY got attacked by a man carrying a baseball bat at the Virginia Democrat’s district office, injuring an intern on her first day and a senior aide. “The congressman was not in his office at the time, according to Fairfax City police. The Capitol Police later identified the suspect as 49-year old Xuan Kha Tran Pham of Fairfax, Virginia,” our colleagues Nicholas Wu, Jordain Carney and Katherine Tully-McManus write.

Meanwhile, Katherine writes that the incident has further rattled the Hill given the continued threats and violence toward members and staffers. “Ahead of the slated Tuesday release of the House’s legislative-branch spending bill, which will lay out funding levels for Capitol Police and other security measures, lawmakers are again discussing what — if any — level of protection would make them feel truly safe.”

THREAT ASSESSMENT — House Foreign Affairs Chair MICHAEL McCAUL (R-Texas) is “threatening to push forward a legislative effort to hold Secretary of State ANTONY BLINKEN in contempt of Congress next week if he does not release a classified cable sent from U.S. diplomats in Kabul shortly before the chaotic withdrawal from Afghanistan,” AP’s Stephen Groves writes.

TRUMP CARDS

FOR YOUR RADAR — NOELLE DUNPHY, a former employee of RUDY GIULIANI, is suing him for $10 million over allegations of sexual assault and harassment, wage theft and “other misconduct,” including several instances that were recorded, according to a complaint filed Monday. The complaint details a range of disturbing allegations of Giuliani’s conduct, which the former NYC mayor denied “vehemently” to the AP yesterday. More from Kelly GarrityRead the complaint

A PICTURE’S WORTH — “Trump’s PAC funded Smithsonian portraits though individual donors were suggested, emails show,” by WaPo’s Amy Wang and Mariana Alfaro

OK THEN — “Trump sues Pulitzer board for defamation in defending winning Russia collusion stories,” by The Hill’s Zach Schonfeld

 

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POLICY CORNER

BIG READ — “Democrats bet billions on carbon capture, but the government isn’t ready,” by Ben Lefebvre and Zack Colman: “As hundreds of companies rush to capitalize on $12 billion in new subsidies for a crucial climate technology, state and federal agencies struggle to reassure the public it will be safe.”

BIG DEAL — “IRS tests free e-filing system that could compete with tax-prep giants,” by WaPo’s Jacob Bogage: “The system will be available through a pilot program for a small group of taxpayers by January, when the 2024 filing season begins, said the people briefed on the matter.”

THE BRAVE NEW WORLD — “Washington is struggling to catch up on artificial intelligence,” by NBC’s Scott Wong and Kevin Collier: OpenAI CEO SAM ALTMAN “will testify about AI for the first time on Capitol Hill, appearing before a Judiciary subcommittee on privacy and technology led by Sens. RICHARD BLUMENTHAL, D-Conn., and JOSH HAWLEY, R-Mo.”

AMERICA AND THE WORLD

FOR YOUR RADAR — ROBERT SHONOV, a former employee of the U.S. Embassy in Russia, was arrested by Russian authorities and charged with conspiracy, Russian news agency Tass reported yesterday. “Tass, quoting an anonymous law enforcement official, said that Mr. Shonov was accused of ‘collaboration on a confidential basis with a foreign state or international or foreign organization,’” NYT’s Daniel Victor writes. No court date has been set for Shonov, whose nationality is unclear.

COLD TURKEY — “Biden backs ‘whoever wins’ in Turkish election,” by Nahal Toosi and Ari Hawkins: “The Biden team’s awkward ambivalence reflects an uncomfortable reality. … Washington can’t simply turn its back on the strongman.”

Related read: “Erdogan’s Grip on Power Is Loosened but Not Broken, Vote Shows,” by NYT’s Ben Hubbard in Ankara, Turkey

BEYOND THE BELTWAY

WINDY CITY WINNER — “Brandon Johnson sworn in as Chicago mayor,” by Shia Kapos in Chicago

FOR THOSE KEEPING TRACK — “Federal prosecutors seek to drop charges against Andrew Gillum,” by Gary Fineout in Tallahassee

VALLEY TALK

MUSK READ — “US Virgin Islands subpoenas Elon Musk as part of lawsuit into Jeffrey Epstein sex trafficking ring,” by CNN’s Ramishah Maruf: “The petition to serve the subpoena does not implicate Musk in any wrongdoing and merely indicates that he was a high-net-worth individual whom Epstein may have introduced to JPMorgan Chase.”

 

GET READY FOR GLOBAL TECH DAY: Join POLITICO Live as we launch our first Global Tech Day alongside London Tech Week on Thursday, June 15. Register now for continuing updates and to be a part of this momentous and program-packed day! From the blockchain, to AI, and autonomous vehicles, technology is changing how power is exercised around the world, so who will write the rules? REGISTER HERE.

 
 
PLAYBOOKERS

VP Kamala Harris made good on a house divided bet with Doug Emhoff after her Warriors lost to his Lakers in the NBA playoffs.

George Soros is dispelling the rumors of his demise on Twitter.

Jason Sudeikis said his Ted Lasso character was partly influenced by the Donald Trump years.

The Village People sent a cease and desist letter to Donald Trump over “Macho Man.”

SPOTTED: MSNBC’s Chris Hayes at Taylor Swift’s “Eras Tour” in Philadelphia on Saturday, pumping his fist to “Love Story,” according to two Swifties familiar with the matter. … Kellyanne Conway and her daughters at the Taylor Swift show on Sunday.

OUT AND ABOUT — SPOTTED at the Hay Adams Hotel for a rooftop dinner hosted by Maureen White and Steve Rattner yesterday evening: Senate Majority Leader Chuck Schumer, Sens. Michael Bennet (D-Colo.), Mark Warner (D-Va.), Sheldon Whitehouse (D-R.I.) and John Hickenlooper (D-Colo.), Neera Tanden, Susan Rice, Ron Klain, Robert and Elena Allbritton, David Rubenstein, Steve Clemons, Sally Quinn, Al Hunt and Judy Woodruff, Margaret Carlson and Jon Karl.

The Motion Pictures Association hosted a reception and screening of the documentary “Split at the Root” yesterday evening, where executive producer Rosario Dawson and Rep. Pramilla Jayapal (D-Wash.) gave remarks prior to the screening and Voto Latino’s Maria Teresa Kumar and director Linda Goldstein Knowlton participated in a panel discussion with two of the film’s subjects afterward. SPOTTED: Sen. Cory Booker (D-N.J.), Rep. Steve Horsford (D-Nev.), Lyndon Boozer, Mignon Clyburn, Tamara Buchwald, Larry Duncan, Todd Flournoy, Tammy Haddad, Suhail Khan, Susan McCue, John Mercurio, Angel Padilla, Aviva Rosenthal, Jason Fink, Alexa Verveer, Jimmie Williams and Kevin Wynne.

— SPOTTED at a reception celebrating the Special Olympics World Games hosted by UAE Ambassador Yousef Al Otaiba and German Ambassador Emily Haber at Officina yesterday evening to “pass the torch” from Abu Dhabi to Berlin: Tim Shriver, Austrian Ambassador Petra Schneebauer, Ecuadorian Ambassador Ivonne Baki, Estonian Ambassador Kristjan Prikk, Kuwaiti Ambassador Sheikha Al-Zain Al-Sabah, Liechtensteiner Ambassador Georg Sparber, Portuguese Ambassador Francisco Duarte Lopes, Romanian Ambassador Andrei Muraru, Rwandan Ambassador Mathilde Mukantabana, Slovak Ambassador Radovan Javorčík, EU Deputy Ambassador Michael Curtis, Roy Blunt, Jane Harman, David Bada, Caryl Stern, Russell Wolff, Max Neuberger and Steve Clemons.

FIRST IN PLAYBOOK — Emily Carwell and Ian Staples are joining Democratic Minority Whip Katherine Clark’s office. Carwell will be policy director and previously was staff director of the Senate Democratic Policy and Communications Committee. Staples will be national security adviser and previously was acting deputy assistant secretary of Defense for Senate Affairs.

West Wing Writers is announcing today that it is now an employee-owned firm, rolling out an Employee Stock Ownership Plan. The move also boasts a new structure with two new Executive Directors: Kate Childs Graham and Annie Farber.

Brian Wild is joining the National Association of Wholesaler-Distributors as chief government relations officer. He previously was a policy director at Brownstein Hyatt Farber Schreck.

TRANSITIONS — Chris Fisk is now senior policy adviser to VP Kamala Harris. He most recently was a policy adviser for the Senate HELP Committee. … Dana Wade is now a senior adviser for House Financial Services Chair Patrick McHenry (R-N.C.). She most recently was a senior executive at the commercial real estate finance firm, Walker & Dunlop and is an FHA, HUD, OMB and Paul Ryan alum. …

Jamie Hill is joining Shallot Communications advising on strategic comms and public affairs issues. She most recently was head of comms for mental health startup Real and is an Obama HHS and Google alum. … Liza Pluto is joining Mars Inc. as media relations and issues manager on the corporate affairs team. She previously was on the MSNBC PR team. … Ben Steinhafel is now director of federal affairs at Blue Cross Blue Shield Association. He previously was director of policy and external affairs at the Center for Telehealth and E-Health Law.

HAPPY BIRTHDAY: Reps. Lois Frankel (D-Fla.) and Dwight Evans (D-Pa.) … Dan Coats (8-0) … Minyon MooreTucker Carlson … FTI Consulting’s Jeff BechdelBobby Frederick … Elias Law Group’s Kate KeaneAndrew Mamo … PBS’ Sara JustBradley BottomsEmily Aden … Lyft’s Jodi SethJoDee Winterhof … former Rep. Jim Moran (D-Va.) … Jay Perron … Brookings’ Michael O’HanlonJake StickaAndie PivarunasMarissa Lorenzetti of the Madison Group … Patrick DelaneyOlivia Kelley Delgado … CBS’ Rob Legare Michael WearAdán Serna of Sen. Ben Ray Luján’s (D-N.M.) office … Christine Delargy … former Connecticut Gov. Lowell Weicker (92) … David Meadvin Susan Ariel Aaronson

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