The Archive
Every issue of the Punchbowl News newsletter, including our special editions, right here at your fingertips.
Join the community, and get the morning edition delivered straight to your inbox.
January 19, 2023
Punchbowl News Presents
Introducing Tech – our newest policy vertical. From high-profile interviews with industry influencers & policymakers to key lobbying updates, Punchbowl News Tech will be your go-to for timely technology insights.
PRESENTED BY
THE TOP
Happy Thursday morning.
News: House Minority Leader Hakeem Jeffries and former Speaker Nancy Pelosi are in San Francisco today, where they’re fundraising and meeting with donors together before jetting to Los Angeles to do the same.
This is notable for many reasons. California – specifically San Francisco – is Pelosi’s home turf. And she’s by far the biggest fundraiser in congressional history, raising more than $1 billion for Democrats during 20 years in leadership, according to her team.
Pelosi, of course, was never going to disappear completely from the fundraising scene once she stepped down from Democratic leadership. But headlining an event with Jeffries in her backyard and personally introducing him to key California donors is a big deal for the New Yorker and the caucus.
The California stops are one part of a multi-state fundraising swing for Jeffries and the new House Democratic leadership – Minority Whip Katherine Clark and Democratic Caucus Chair Pete Aguilar.
Each of the “New Three” is holding their own separate events during this week-long trip, which also includes DCCC Chair Suzan DelBene. The three top Democrats are expected to set up “joint fundraising committees” with the DCCC, their campaign committees and leadership PACs to help rake in funds.
For much of her tenure – and especially during the last decade – Pelosi served as the primary fundraiser for both the DCCC and House Majority PAC, the Democratic-leadership affiliated super PAC. Former House Majority Leader Steny Hoyer and Majority Whip Jim Clyburn – who is still in leadership – raised millions of dollars each cycle as well.
But for the DCCC and HMP, Pelosi was the key. Jeffries, Clark and Aguilar – who each have their own “lane” within the party – plan to try to divvy up the effort to replicate Pelosi’s success.
This San Francisco fundraising event with Pelosi is particularly important, functionally and symbolically. As Jeffries prepared to ascend to the top Democratic leadership post, the lingering question among his colleagues was whether he’d be able to even come close to matching Pelosi’s fundraising prowess. Pelosi is doing what she can to help assuage those fears.
The effort began during the last Congress, when Pelosi invited Jeffries and Clark to her Napa, Calif., weekend with big-dollar donors to expose the younger Democrats to her network.
“I look forward to staying in close contact with her,” Jeffries told us about Pelosi. “I mean her schedule will be her schedule. But I look forward to staying in close communication.”
Another key question as Jeffries took over was how would Pelosi comport herself in the Capitol. The California Democrat said she had no intention of being the “mother-in-law in the kitchen” looking over Jeffries’ shoulder, telling him how to do things.
But the House Democrats’ situation is unique, even for Congress. Pelosi led the caucus for two decades, with Hoyer and Clyburn in the No. 2 and 3 spots for most of that time.
While Jeffries has been in leadership since 2017, Pelosi made many decisions unilaterally, particularly in recent years as some of her closest allies left Congress. When Pelosi relied on outside counsel, it was usually kept to a very small circle, sometimes even excluding Hoyer and Clyburn. When Pelosi held particularly sensitive leadership meetings, invitations were only often extended to Hoyer, Clyburn and Clark, the No. 4 Democrat last Congress.
But Pelosi has been careful to not overstep as she navigates a new role of her own – “speaker emerita” as Democrats deemed her. Still, she is helping Jeffries navigate the new job, but in a discreet way.
The two have started regular meetings in his office suite just off the House floor. Pelosi offers counseling and guidance, according to lawmakers and aides with knowledge of the huddles.
Pelosi’s knowledge of the caucus is encyclopedic, ranging from what committees lawmakers should be on to what bills they should sponsor to which outside groups need to be cared for at what time.
“She’s been tremendous,” Jeffries told us. “And her advice, her guidance and her counsel has been invaluable.”
Jeffries has kept a regular rotation of caucus outreach going since he took over, including the weekly “Crescendo” meetings Pelosi held with leaders of the various factions within the caucus. Jeffries will also hold a weekly meeting with committee ranking members, something Hoyer led as the No. 2 Democrat.
“It’s a situation where I know that role. I’ve had it in every way,” Pelosi told us of her informal discussions with Jeffries.
More from Pelosi:
Pelosi added that she doesn’t want to “give the impression” in any way that she is playing a part in leadership decisions.
“If he asks, I will meet with him,” Pelosi said of Jeffries. “I know the role, I know the person. I think we’re in very good hands.”
— Heather Caygle, John Bresnahan and Jake Sherman
THE DEAL
Donalds’ king’s ransom
Rep. Byron Donalds, a second-term Republican from Florida, was a central figure in the intense drama surrounding Kevin McCarthy’s election as speaker.
Donalds first supported McCarthy, but then voted against him on the third through 11th ballots before switching back to supporting the California Republican on the 12th ballot. McCarthy won on the 15th ballot.
It was well known at the time that Donalds was deep in negotiations with House Republican leaders and other McCarthy allies. But now we know just what Donalds got, according to multiple sources involved with the discussions.
| → | Donalds scored a seat on the Financial Services Committee, which he sought during the negotiations. |
| → | Donalds asked for a seat at the Elected Leadership Committee table. ELC, as it is known, is the inner sanctum of House Republican leadership politics. It’s where the speaker hashes out strategy with the majority leader, majority whip, Republican Conference chair and close allies. Donalds now has a seat at the table as the House Freedom Caucus representative to ELC. |
| → | Donalds also snagged a seat on the Republican Steering Committee, which decides committee assignments and chairmanships for the entire House GOP. Donalds is McCarthy’s personal appointee to steering. This is a good venue for Donalds to boost ties across the conference. |
| → | There’s one concession that Donalds didn’t get. During the negotiations, the Florida Republican brought up getting a prized office in the Capitol. As we all know, Capitol office space is incredibly limited and typically reserved for leaders and top committee chairs. This was a steep – and some thought outlandish – ask. |
Donalds was one of the big winners of the speaker stakes, according to conversations with sources involved. He was even nominated for speaker and got votes on the floor. If you think your boss got more out of the negotiations, shoot us a line.
Donalds’ office declined to comment.
– Jake Sherman
SPENDING SHOWDOWN
DeLauro seeks info from agencies on proposed House GOP spending cuts
News: Rep. Rosa DeLauro (Conn.), top Democrat on the House Appropriations Committee, has penned a new letter to federal agencies, seeking to understand the impact of freezing spending at 2022 levels.
House Republicans have vowed to return spending to FY2022 levels, and DeLauro wants to know what that would mean for veterans programs and other initiatives that have bipartisan support.
Conservative House Republicans made the demand for major spending cuts in return for backing Rep. Kevin McCarthy’s bid to become speaker. Now the GOP leadership must figure out what this policy means.
Yet to do so would require dramatic cuts to discretionary spending, somewhere on the order of $130 billion. Republicans say these cuts could come from non-defense programs. But in private, a number of GOP lawmakers acknowledge there’s no way they could do so without alienating their own moderates or seeking Pentagon cuts.
DeLauro is asking each of the Cabinet secretaries to estimate by Feb. 3 what the impact would be on the communities they serve, as well as the wider public.
Here’s a link to the DeLauro letters, which will be sent out today, and here’s a quote from her letter:
– John Bresnahan
PRESENTED BY THE AMERICAN PETROLEUM INSTITUTE
Read API’s plan to learn more about how we can Make, Move and Improve energy.
Detroit mayor’s warning: 118th Congress might come for your ARPA funds
Detroit Mayor Mike Duggan (D) had a stark message for his peers on Wednesday: The 118th Congress is hungry for spending cuts, and unobligated American Rescue Plan funds could end up on the chopping block.
Duggan made the remarks at the U.S. Conference of Mayors’ meeting underway in Washington this week. Duggan, now in his third term, moderated a discussion on using funds from the $1.9 trillion stimulus package Congress passed in March 2021.
A key part of the legislation for state, local and tribal governments was a $350 billion recovery fund. Nearly two years later, local officials are racing to “obligate” those federal funds toward projects for their constituents before the end of 2024.
“There are some storm clouds on the horizon,” Duggan warned. “You’ve seen what’s happening right now in Congress, in this country.”
“Those who were not here during the Obama years don’t remember the sequestration, the budget shutdowns and the like. But I think we’re heading back to that kind of swing,” Duggan added.
The Treasury Department, which is overseeing much of the American Rescue Plan, set the Dec. 31, 2024, deadline for local governments to put the money to use.
But Duggan argued that a drawn-out fight over pending spending cuts on Capitol Hill could eventually send Democratic lawmakers scrambling to make a deal with hardline conservatives. Were that to happen, clawing back unspent funds from ARPA would be easier to swallow than cuts to the military, Social Security or Medicare.
Here’s more from Duggan:
| → | In case you missed our Tuesday night conversations with Durham, N.C., Mayor Elaine O’Neal and Pamela Everhart, Fidelity Investments’ SVP and head of regional public affairs and community relations, you can watch the full video here. |
– Brendan Pedersen
NEWS YOU CAN USE
This year’s WPCF dinner headliners
Sen. Raphael Warnock (D-Ga.) and Rep. Nancy Mace (R-S.C.) will be headlining the Washington Press Club Foundation’s 77th annual dinner this year. The dinner will be held on Wednesday, Feb. 8, at the Waldorf Astoria Washington D.C. The two lawmakers will continue the long tradition of delivering lighthearted speeches as reporters and members celebrate a good cause – promoting diversity in newsrooms.
Warnock is coming off winning a tough election campaign, securing a six-year term after beating GOP candidate Herschel Walker in a December runoff. The Georgia Democrat recently hosted President Joe Biden for a Sunday service at Atlanta’s Ebenezer Baptist Church, where Warnock still serves as the senior pastor.
Mace flipped a Democratic seat in 2020 and has emerged as a member of the House GOP Conference who’s willing to spar with her party’s right flank. Mace was a vocal backer of Kevin McCarthy’s speaker bid and has frequently clashed with Rep. Matt Gaetz (R-Fla.).
Punchbowl News is a proud supporter of the dinner. Proceeds from the annual event will fund internships and educational programs for women and minority journalists. Punchbowl News will be hosting a VIP reception ahead of the dinner.
— Heather Caygle and Max Cohen
PRESENTED BY THE AMERICAN PETROLEUM INSTITUTE
Read API’s plan about making, moving and improving energy.
Crucial Capitol Hill news AM, Midday, and PM—5 times a week
Join a community of some of the most powerful people in Washington and beyond. Exclusive newsmaker events, parties, in-person and virtual briefings and more.
Subscribe to Premium
The Canvass Year-End Report
And what senior aides and downtown figures believe will happen in 2023.
Check it outEvery single issue of Punchbowl News published, all in one place
Visit the archive
Punchbowl News Presents
Introducing Tech – our newest policy vertical. From high-profile interviews with industry influencers & policymakers to key lobbying updates, Punchbowl News Tech will be your go-to for timely technology insights.
Read our first Tech Quarterly now