Friday, June 9, 2023

The next spending fight: McCarthy v. McConnell

Presented by American Health Care Association: A play-by-play preview of the day’s congressional news
Jun 09, 2023 View in browser
 
POLITICO Huddle

By Katherine Tully-McManus and Daniella Diaz

Presented by American Health Care Association

HILL REACTS TO TRUMP INDICTMENT — Former President Donald Trump has been indicted for a second time, facing seven counts including (according to his attorney) a charge under the Espionage Act and charges of obstruction of justice, destruction or falsification of records, conspiracy and false statements. But Republicans in Congress, and even some of those running against him for president, rushed to support him Thursday night.

  • Speaker Kevin McCarthy (R-Calif.): “I, and every American who believes in the rule of law, stand with President Trump against this grave injustice. House Republicans will hold this brazen weaponization of power accountable.”
  • Sen. Tim Scott (R-S.C.), who is running against Trump for president, said in an interview: “What we've seen over the last several years is the weaponization of the department of justice against the former president.”
  • Senate Minority Leader Mitch McConnell (R-Ky.) had the same public reaction to this indictment as to the last one: none. 

Don’t miss Josh Gerstein and Kyle Cheney’s Trump indictment cheat sheet as you get caught up this morning.

FILE - From left, Senate Minority Leader Mitch McConnell, R-Ky., Senate Majority Leader Chuck Schumer, D-N.Y., and Speaker of the House Kevin McCarthy, R-Calif., sit together during a ceremony at the Capitol in Washington, Wednesday, May 17, 2023. If a debt limit deal can be reached between McCarthy and President Joe Biden, McCarthy has promised his conference that he will give lawmakers 72 hours to read the bill before they vote on it and send it to the Senate. (AP Photo/J.   Scott Applewhite, File)

How far apart are Congressional leaders on defense spending and aid to Ukraine? This far. (Scott Applewhite) | AP

THE DEFENSE DOLLAR DIVIDE — President Joe Biden pledged Thursday, once again, that U.S. financial support for Ukraine’s fight against Russia will continue. But it’s fair to wonder how, or whether, a deeply divided Congress can deliver.

The upcoming fights on spending, including a possible defense and Ukraine aid supplemental funding bill, are going to get hotter than D.C. summer.

McConnell v. McCarthy: The starkest divide is not partisan – it’s between the two Republican leaders in each chamber. And the rhetoric this week put a spotlight on how tough it might be to unite Republicans around spending in the coming months.

McConnell has maintained that the spending caps outlined in the debt limit deal short change the Pentagon, a position that brings him in line with defense hawks in his chamber calling for a separate bill to boost national security.

“At this particular point, defense is radically underfunded related to the Chinese threat and Ukraine will probably need additional assistance,” McConnell said this week. But he acknowledged the tough road ahead: “Figuring out how to do this is going to be a challenge.”

Meanwhile McCarthy has swatted away the idea of a separate bill to circumvent the caps in the deal he negotiated with Biden. "Why do you move to a supplemental when we just passed [an agreement]?" the speaker told reporters. "If the idea of the supplemental is to go around the agreement we just came to, I think we've got to walk through appropriations."

If McConnell thinks the McCarthy-Biden deal lowballed the Pentagon, he really won’t like it if House GOP leaders bow to demands from conservatives in his conference to move forward with fiscal 2024 funding levels under what the levels set in the debt limit deal. That’s a discussion that’s simmered on the Hill this week as McCarthy faces pressure from the conservative flank of his conference to course correct from what they see as a flawed debt deal. If that includes House spending bills that come in under the defense cap, it will set up a bruising standoff with the Senate.

 

A message from American Health Care Association:

It’s time to prioritize seniors’ access to care. The long term care community is facing a historic labor crisis, forcing nursing homes across the country to limit new admissions, or worse - close entirely. A federal staffing mandate would only further reduce seniors’ access to care and lead to more nursing home closures. We need resources to recruit, not unfunded mandates. Learn more about better solutions.

 

TGIF! Welcome to Huddle, the play-by-play guide to all things Capitol Hill, on this Friday, June 9, where we’d like to be able to see the Washington Monument through the haze. Maybe next week.

90 MILES OFF FLORIDA —  An antagonistic world power is once again eyeing Cuba as a key location to collaborate and collect intel. No, it’s not 1962. And it’s not Russia.

Cuba has agreed to host a Chinese electronic eavesdropping facility on the island, which is under 100 miles from Florida. It would allow China to monitor U.S. ship traffic and collect electronic communications across the southeast. The move is a bold challenge from Beijing, first reported by The Wall Street Journal.

“We are deeply disturbed by reports that Havana and Beijing are working together to target the United States and our people. The United States must respond to China’s ongoing and brazen attacks on our nation’s security,” Senate Intelligence Committee Chair Mark Warner (D-Va.) and ranking member Marco Rubo (R-Fla.) said in a Thursday statement. “We must be clear that it would be unacceptable for China to establish an intelligence facility within 100 miles of Florida and the United States, in an area also populated with key military installations and extensive maritime traffic.”

Rep. Mike Gallagher (R-Wis.) chair of the House select committee on the Chinese communist party warned against “emboldened CCP aggression” and wasn’t shy about making the Cuban Missile Crisis comparison, quoting President John F. Kennedy: “One path we shall never choose, and that is the path of surrender or submission.”

Earlier this week House Armed Services Chair Mike Rogers (R-Ala.) told POLITICO that he expects a supplemental funding bill this year specifically for countering China. This development could get more colleagues interested in that prospect.

SPENDING MARKUPS AHEAD — House Appropriations Committee Chair Kay Granger (R-Texas) scrapped plans to start spending markups amid the debt limit mess, but is forging ahead next week. The full spending panel is expected to at least take up a few of the bills that already went through subcommittee, a House GOP aide told Caitlin.

 

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.

 
 

MCCARTHY TURNS TO CENTRISTS — Olivia and Sarah scooped Thursday that GOP leadership privately briefed about a dozen, mostly battleground, Republicans on a plan to take up two bills next week – including one to strengthen limits on taxpayer funding for abortion.

“Why the hell are we doing this?” Rep. Nancy Mace (R-S.C.) asked Majority Leader Steve Scalise (R-La.) and Majority Whip Tom Emmer (R-Minn.), according to two House Republicans familiar with the meeting. The exchange illustrates the pressure that McCarthy and his top deputies are under as they try to pass legislation with just a five-seat majority. This comes as the House came to standstill this week as conservative hardliners have grabbed attention and are venting their fury at leaders over perceived broken promises, but centrists can wield similar power in their own way if they’re frustrated enough.

TAKING THE SHINE OFF SHEIN — If you’re a frequent shopper of the fast fashion store Shein, you should probably be aware of the labor that goes into the clothing.

Sen. Marco Rubio (R-Fla.), who is also a senior member on the Senate Committee on Foreign Relations, sent a letter to his colleagues urging them to join him in holding Shein accountable for using Uyghur slave labor. Rubio stated in the letter Shein uses cotton linked to Uyghur slave labor in the Xinjiang Uyghur Autonomous Region.

“Shein knows its reputation is toxic, so now it is taking steps to clean up its image ahead of a potential initial public offering in the United States,” he wrote in the letter. “It hired lobbyists from the firms Akin Gump and Hobart Hallaway and Quayle to protect its tax and trade loopholes. It relocated its headquarters from China to Singapore to escape scrutiny as a Chinese company, although its fabrics and garments are still made in China.”

NOT SO PAR FOR THE COURSE — Don’t expect Congressional action on the LIV-PGA merger anytime soon. Anthony looks past the bipartisan outrage over the Saudi-backed LIV Golf’s deal to what could actually be done and what there’s an appetite for on Capitol Hill.

“Some lawmakers are calling for congressional investigations. Others are looking to the Justice Department and other federal regulators to first explore the case for blocking the move on antitrust grounds. Only after regulators act, they say, is there likely to be appetite for Congress to enter the picture — even as a majority of its members are openly wary of the deal,” Anthony reports.

 

A message from American Health Care Association:

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HUDDLE HOTDISH

Pucker up… Roll Call’s Jim Saksa delivered with his coverage of longtime Senate tradition Seersucker Thursday: Sartorially savvy senators and staff select seersucker as the smart summertime suit

Marcy’s special mac… How do you get special edition mac and cheese like Rep. Marcy Kaptur (D-Ohio)? Asking for a friend.

QUICK LINKS 

The Next Pelosi: Pete Aguilar Is The Future Dean of California Democrats, from Jonathan Martin

Joint chiefs vacancies loom amid Tuberville’s Senate stand off, from Bryant Harris, Stephen Losey and Megan Eckstein at Defense News

‘How can we trust her?’: Florida congresswoman violates same financial law she blasted rival for breaking, from Alexandria Jacobson at Raw Story

TRANSITIONS 

Mitchell Taylor has joined the Progressive Policy Institute as its new Congressional Policy Fellow to support the Blue Dog Coalition, and will be placed in the office of Congresswoman Mary Peltola (D-Alaska), the recently named Blue Dog Coalition Co-Chair for Policy and Legislative Strategy. Prior to joining the Blue Dog Coalition, Taylor worked in the office of U.S. Sen. Jerry Moran (R‑Kan.).

Adam Taylor has been promoted to be legislative director for Rep. Scott Peters (D-Calif.). He most recently was his military legislative assistant.

Katherine Thordahl is now digital director and deputy communications director for Rep. Julia Letlow (R-La.). She most recently was senior account manager at DCI Group.

Alana Peisner is now scheduler for Rep. Mike Levin (D-Calif.). She most recently was a government affairs associate at Mehlman Consulting.

Gabrielle Lipsky has been promoted to be comms director for Rep. George Santos (R-N.Y.). She most recently was his press secretary.

 

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.

 
 

TODAY IN CONGRESS

The House meets at 9 a.m. for a pro forma session.

The Senate is out.

AROUND THE HILL

A quiet one.

TRIVIA

THURSDAY’S WINNER: Lewin Weyl correctly answered that Governor William Goebel of Kentucky is the only American governor to die in office from an assassin’s bullet.

TODAY’S QUESTION: On which day did President John F. Kennedy deliver his address to the nation announcing the discovery of Soviet missile bases in Cuba.

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 and Daniella on Twitter @ktullymcmanus and @DaniellaMicaela

 

A message from American Health Care Association:

America’s seniors need our help. The long term care community is facing a historic labor crisis that is forcing nursing homes across the country to limit new admissions, and for hundreds, close their doors. Facilities are doing everything they can to hire more caregivers, but with limited government funding, they can’t recruit the staff they need.

A federal staffing mandate without resources would only make the crisis worse, forcing more nursing homes to close and limiting access to care for seniors. We need Washington to invest in long term care and our workforce to ensure seniors have the caregivers they need. Learn more.

 
 

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