Tuesday, May 16, 2023

Fresh dynamics, same sharp rhetoric headed into debt talks

Presented by Sallie Mae®: A play-by-play preview of the day’s congressional news
May 16, 2023 View in browser
 
POLITICO Huddle

By Daniella Diaz and Katherine Tully-McManus

Presented by Sallie Mae®

With an assist from Anthony Adragna and Nicholas Wu

House Speaker Kevin McCarthy (R-Calif.) and President Joe Biden.

The dynamics have changed since the last Big Four meeting with the president, including indications from Biden – who once flatly refused to negotiate on the debt ceiling at all – that he’d be willing to make concessions on work requirements for federal aid programs. | Evan Vucci/AP Photo

THIRD TIME’S THE CHARM? The Big Four are meeting with President Joe Biden this afternoon to have what are likely the final principal-level talks on the debt ceiling before the president leaves for a weeklong overseas trip.

Speaker Kevin McCarthy (R-Calif.) was critical of the president on Monday when asked about the talks, slamming Democrats for not getting “serious” in the negotiations previously. But the dynamics have changed since the last Big Four meeting with the president, including indications from Biden – who once flatly refused to negotiate on the debt ceiling at all – that he’d be willing to make concessions on work requirements for federal aid programs.

Those suggestions from the president have sparked pushback from Biden’s left flank, as our colleagues at Playbook noted this morning. Still, the talks remain at a he said/she said status.

“We’re looking for solutions, but we’d really like someone to work with us instead of against us,” McCarthy told reporters at a press conference on Monday, prompting Senate Majority Leader Chuck Schumer (D-N.Y.) to reply that “our side is working very hard to avoid default.”

Senate Minority Leader Mitch McConnell (R-Ky.), for his part, remains purposefully unmoved. McConnell has pointedly kept himself out of these talks – his floor speech when the session began on Monday made no mention of the debt ceiling – insisting that any deal with Biden is the speaker’s to make. House Minority Leader Hakeem Jeffries (D-N.Y.) will bring his caucus’ concerns to the table today but the reality is that this is between Biden and McCarthy.

The X Factor for McCarthy: What kind of deal will the most conservative members of the GOP caucus be willing to swallow? Rep. Scott Perry (R-Pa.), a former chair of the House Freedom Caucus, seemed eager on Monday for talks with the White House and Senate to get down to business.

“Look, this is civics 101, right? You can watch Schoolhouse Rock – We pass a bill. They pass a bill, you work it out. You get a signature. We've passed the bill. We're not going to negotiate with ourselves. There's no reason to, so while the negotiations seem like they're pleasant and all – until the Senate passes something – we're going to be standing by because we have something and that's what we can pass.”

Remember, it was the conservative wing of the GOP that held up McCarthy during the speaker vote, eventually forcing him to allow chamber rules that empower any single member to force a floor vote on removing the speaker. That provision has allowed conservatives to keep the pressure up on McCarthy with an implicit threat of removal if he strays too far from their priorities.

Dems float a lifeboat: ...to McCarthy, should he face a motion-to-discharge mutiny from his party’s right flank over a debt ceiling deal.

“A small group of moderate Democratic lawmakers has quietly reassured their House GOP counterparts that they can help protect McCarthy’s gavel if his right flank revolts over a debt agreement,” report Sarah and Nicholas this morning. More here.

Related reads:  Intensifying debt talks threaten rare GOP unity, from Burgess and Olivia;

GOP grows more optimistic about work requirement demands in debt talks, from Meredith Lee Hill; GOP rejected White House effort to close tax loopholes in debt ceiling talks, from Jeff Stein at The Washington Post; Biden dives into debt ceiling talks, causing mini panics among his base, from Adam Canceryn, Jennifer Haberkorn and Jonathan Lemire

 

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. 

 
 

GOOD MORNING! Welcome to Huddle, the play-by-play guide to all things Capitol Hill, on this Tuesday, May 16, where one of us will be live on C-SPAN at 8 a.m.

READY (OR NOT) FOR RECESS: The Senate is currently scheduled to go on recess into Memorial Day next week, but Republican Minority Whip John Thune (S.D.) told reporters the Senate might have to cancel that break without more progress on debt negotiations, per Burgess. He said if there is progress in the next couple days, the Senate could be on standby to vote — but ultimately it’s up to Schumer.

Speaking of Senate recess: Rep. Marc Molinaro (R-N.Y.) led a letter of (mostly moderate) Republicans calling on Schumer to cancel the upcoming state work period in the Senate.

“Senate lawmakers cannot go on vacation while the financial security of our nation and essential benefits on which Americans rely hang in the balance,” the lawmakers wrote in the letter. “Americans overwhelmingly support compromise, and this schedule demonstrates a lack of willingness to come to the table and negotiate. The Senate has yet to pass a bill that would raise the debt ceiling and curb inflation-causing government spending.”

FIRST IN HUDDLE: DNC ADS ON DEBT LIMIT — The Democratic National Committee launched a six-figure digital ad campaign that is targeting voters in 10 toss-up districts with a message tying Republicans to Donald Trump’s comments in support of allowing federal government default on its debt. One ad specifically includes Trump’s remarks at the CNN town hall that the GOP “might as well default” if it doesn't get its asks in the negotiations with the White House for a debt limit proposal. The ads are airing in PA-01, PA-07, PA-08, PA-17, OH-01, OH-13, NE-02, MI-08, MI-10, AZ-06 and NV-03.

“The question Republicans need to answer is this – are they willing to follow Donald Trump's advice saying Republicans ‘might as well’ default? If they do, MAGA Republicans will be responsible for bringing us to the brink of an economic catastrophe, and putting benefits for retirees and veterans, Social Security and Medicare payments, millions of jobs, and so much more on the line. While it may just be a political game to Donald Trump and some MAGA Republicans, it’s not to voters, who won’t soon forget,” DNC spokesperson Daniel Wessel said in a statement.

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NOT BLINKEN — House Foreign Affairs Committee Chair Michael McCaul (R-Texas) said Monday he is prepared to mark up a resolution holding Secretary of State Antony Blinken in contempt of Congress next week, Anthony reports, if the department does not turn over a classified dissent cable and Blinken’s reply to it regarding the withdrawal of U.S. personnel from Afghanistan by close of business Thursday.

“We just want to see the content of the cables and his reply, but I think anything less than that, I just, I can't see how I could accept that,” McCaul told POLITICO.

McCaul said the “sanitized version” of the documents that have thus far been released are “not adequate,” though he is willing to accept redacted names to protect them.

“I know that the secretary is probably relying on sort of institutional traditions, and he has to weigh that versus the legacy of being the first secretary of state ever to be held in contempt. of Congress,” he said. “I don’t take delight in that, but I’ve got a job to do. I think we’ve got every right to see it.”

DURBIN UNVEILS HIS BORDER BILL — Chairman of the Senate Judiciary Committee Dick Durbin (D-Ill.) has unveiled his legislation that would provide resources to the border to help with the expected influx of migrants with the expiration of Title 42, a pandemic-era policy that allowed the United States to expel migrants. This bill is separate from the legislation proposed by Sens. Kyrsten Sinema (I-Ariz.) and Thom Tillis (R-N.C.), which would mimic parts of Title 42 to grant authority to expel migrants but not technically extend it.

Instead, Durbin’s legislation would grant additional funding to U.S. Customs and Border Protection (CBP) to provide more resources at the border. It would also give additional resources to deter additional migration at the border by processing and removing migrants whose applications are denied. While Durbin’s bill has support from Democratic leadership, it’s unclear if/when Schumer would put it on the floor for a vote – and so far it has no Republican cosponsors.

 

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.

 
 

LOOKIN’ AT LEGBRANCH — You know your Huddle host KTM will be pouring over the House Legislative Branch spending bill when it drops, to see if House Republicans’ commitment to slash spending to fiscal 2022 levels includes their own budgets.

Jordain got some intel ahead of this morning’s release: Rep. Stephanie Bice (R-Okla.), who serves on both the LegBranch Appropriations subcommittee and House Administration said she thinks members’ office budgets won’t see deep cuts that some staff were bracing for. “To my knowledge there’s going to be no changes to any of the MRAs,” Bice said Monday night.

The price of safety… Don’t expect cuts to Capitol Police, either. Even before the attack on Rep. Gerry Connolly’s (D-Va.) district staff, lawmakers were on track to deliver another annual increase in the department’s funding, as they have each year for over a decade. As threats and fears rise, lawmakers hope that a steady stream of cash can insulate them from growing threats. More on that from KTM: Security fears flare anew in Congress after an attack on one of their own

Bull, Durham — ICYMI: “A report from Special Counsel John Durham accuses the FBI of a double standard for aggressively probing ties between Russia and Donald Trump’s 2016 presidential campaign while soft-pedaling similar claims about foreigners seeking influence over Democratic candidate Hillary Clinton,” write Josh Gerstein and Betsy Woodruff Swan. They have some big-picture takeaways.

HUDDLE HOTDISH

La la la la, Elmo’s World… Cannot wait to spot these celebs in the Rayburn Cafeteria next week. Characters from PBS KIDS and Sesame Workshop will be in Rayburn next Tuesday, May 23rd from 5 - 7 p.m. for an event with the First Five Years Fund and the Pre-K & Child Care Caucus. “Snacks and beverages will be provided and character guests will be available for photo opportunities with kids and grown-ups alike,” reads the invite. Don’t miss your chance to meet Daniel Tiger, Elmo or whoever else may show up.

LUNCH PLANS... CFPB director Rohit Chopra is stopping by the Progressive Caucus’ lunch today, per a person familiar with the situation. They’re expected to discuss the bureau’s work to protect consumers and hold lenders accountable.

 

A message from Sallie Mae®:

Sallie Mae

 

QUICK LINKS 

Washington is struggling to catch up on artificial intelligence, from Scott Wong and Kevin Collier at NBC News

TRANSITIONS 

Will McDonald is the new communications director for Rep. Shontel Brown (D-Ohio) after previously being at the NGO GiveDirectly and before that Rep. Sara Jacobs.

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.

TODAY IN CONGRESS

The House convenes at 10 am for morning hour and noon for legislative business. At noon, the House will begin consideration of three measures, including H.R. 2494, which would make the assault of a law enforcement officer a deportable offense, under a structured rule. First and last votes expected at 1:30 p.m.

The Senate convenes at 10 a.m. and will begin consideration of H.J. Res. 42, which would roll back D.C. policing reforms. At 2:30 p.m., the chamber will vote on passage of H.J. Res. 42.

AROUND THE HILL

9 a.m. Del. Eleanor Holmes Norton (D-D.C.) and the Washington D.C. coalition call on the House and Senate to keep "Hands Off D.C." (House Triangle)

10 a.m. House Oversight Committee hearing on oversight of Washington, D.C. Mayor Muriel Bowser testifies. (2154 Rayburn)

10:15 a.m. House Administration Committee hearing on U.S. Capitol Police oversight. (1310 Longworth)

2 p.m. Senate Appropriations Committee hearing on the fiscal 2024 budget request, focusing on investing in U.S. security, competitiveness, and the path ahead for the U.S. China relationship. Defense Secretary Lloyd Austin, Secretary of State Antony Blinken and Commerce Secretary Gina Raimondo testify. (106 Dirksen)

1 p.m House Judiciary Chairman of the Subcommittee on the Constitution and Limited Government Mike Johnson (R-La.), alongside Reps. Chip Roy (R-Texas) and Dan Bishop (R-N.C.), holds a press conference to discuss recent attacks on pregnancy centers and pro-life facilities. (House Triangle)

TRIVIA

MONDAY’S WINNER: Zach Emanuel correctly answered that Soledad Chávez de Chacón was the first Latina elected to statewide office as the secretary of state of New Mexico.

TODAY’S QUESTION from Zach: What are the only three universities to count among their alumni both an NBA MVP and a U.S. president? Bonus if you can name the players and presidents.

The first person to correctly guess gets a mention in the next edition of Huddle. Send your answers to ktullymcmanus@politico.com

GET HUDDLE emailed to your phone each morning.

Follow Katherine and Daniella on Twitter: @ktullymcmanus and @DaniellaMicaela

A message from Sallie Mae®:

For too long, the federal student loan program has done too much for too many, and not enough for those who need the most support. Meaningfully increasing the Pell Grant, which provides need-based government funding that does not need to be repaid, would be a step in the right direction in supporting access for low-income students and helping protect against overborrowing. Learn more about why private lender and education solutions provider Sallie Mae supports expanding the Pell Grant, a critical tool in increasing college access and completion.

 
 

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