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.
From top lawmaker insights to expert analysis, Premium Policy: The Vault takes you inside the corridors of power from Washington to Wall Street. Join now for indispensable financial and tax intelligence.
PRESENTED BY
THE TOP
Happy Monday morning.
Former Democratic Rep. Karen Bass was sworn in as mayor of Los Angeles Sunday (Stevie Wonder sang!) Bass is the first woman and first woman of color to hold the post.
Bass’ resignation from the House means there are now 218 Democrats to 213 Republicans, with four vacancies. There hasn’t been a 218-seat House majority (at 435 members) in 90 years. Democrats can lose only two votes on any bill.
With government funding expiring Friday, Democrats announced last night that there has been some progress in the talks over the FY2023 omnibus spending package. Due to this, House and Senate Democratic leaders will hold off on rolling out their own version of an omnibus package today. Here’s a statement from Senate Appropriations Committee Chair Patrick Leahy’s (D-Vt.) office:
“Chairman Leahy feels that sufficient progress in negotiations took place over the weekend to delay the introduction of the omnibus appropriations bill for the time being. Bipartisan and bicameral negotiations continue.”
Behind the scenes, there’s been some progress, but not a ton. Democrats canceled a “readout” of their version of the omnibus, which is when Democratic and Republican staffers on the Appropriations panels go through the entire package. We’re talking about a roughly $1.7 trillion bill that’s a couple of thousand pages long, so this is an arduous task. Cancellation of the readout, coupled with the Leahy announcement, was seen as good news.
However, there’s no deal on a “topline” number for overall FY2023 spending. The two sides continue to fight over spending on social programs. Republicans refuse to go along with “parity” in spending increases for both defense and non-defense programs, arguing Democrats already got lots of new money for climate change and other progressive initiatives in the Inflation Reduction Act. Democrats counter that Republicans are shortchanging veterans’ programs by $10 billion, as well as other social safety net initiatives.
How will all this play out? Well, there isn’t going to be a shutdown. But there’s also virtually no chance that Congress can finish work on everything by the Friday deadline There’ll need to be at least one more continuing resolution.
Can Congress complete action on an omnibus by Christmas, which really means Dec. 23? Maybe. But there has to be a topline deal very, very soon to do that. Democrats have largely drafted an omnibus, as we noted, so appropriators can move forward on a funding package quickly once there’s a topline deal. It will take the Senate several days to work through the measure, although we’re big believers in “Senate magic” when recesses or holidays approach. Then the House would pass the bill – hopefully – and send it on to President Joe Biden.
Democrats are preparing some backup plans in case they can’t pass an omnibus. They could offer a year-long CR at FY2022 levels with “anomalies,” those policy changes needed for federal agencies to operate effectively during that period. But a CR means no earmarks. Democrats, though, are also looking at offering a year-long CR with earmarks as an added incentive for Republicans.
Republicans would very likely reject this effort. The Pentagon would object to another year at current funding levels as well. Senate Minority Leader Mitch McConnell has floated passing a short-term CR into early 2023, which is after Republicans take over the House. Democrats don’t want to deal with that at all.
We still believe there’ll be an omnibus deal. House and Senate leaders need to move fast, which hasn’t been a trait of the 117th Congress. But there’s still a strong desire on all sides to wrap up everything by Christmas and leave town, with lawmakers not returning until Jan. 3, the first day of the new Congress.
One other thing to remember: Congress has yet to deal with Ukraine funding. The White House is seeking $37 billion in new economic and military aid for Ukraine as it fights off the Russian invasion. Biden spoke with Ukrainian President Volodymyr Zelensky on Sunday. Biden “reaffirmed the U.S. commitment to continue providing Ukraine with security, economic and humanitarian assistance,” said the White House.
And the Senate is expected to complete work on the annual defense authorization bill this week. The NDAA is being considered as a “message” from the House, which will speed up the floor process in the Senate. It only takes a simple majority vote to get onto the bill and just one cloture vote. McConnell and Senate Majority Leader Chuck Schumer are still negotiating on amendments.
Inflation Watch: It’s a big week for Wall Street and world financial markets. The consumer price index data for November will be released on Tuesday, and the Federal Reserve will announce its latest interest rate increase on Wednesday. The Fed is expected to approve a 50 basis point rate boost, down from its recent aggressive run of 75-point hikes. Fed Chair Jay Powell will hold a press conference following the rate announcement to talk about the outlook for the U.S. economy.
–John Bresnahan
Tomorrow: Don’t miss our last event of 2022! We’re interviewing Sen. Ron Wyden (D-Ore.) tomorrow at 10 a.m. ET about the importance of privacy and security in new and existing technologies. This is the third event in our “Building Trust in Technology” series. RSVP to join us virtually!
PRESENTED BY INTUIT
28% of adults say they’ve never participated in a financial education program.
Intuit and the Suh Family Foundation are partnering to bring financial literacy education to high school students in some of the nation’s largest school districts, including Dallas, Los Angeles and Oakland.
Intuit’s financial literacy curriculum is also available publicly at no cost. Learn more.
CANNA-BUMMER
SAFE Banking’s fate lies with the omnibus – and that’s probably bad
Proponents of cannabis banking reform have set their sights on the FY2023 omnibus package as the last major legislative vehicle that could include the Secure and Fair Enforcement Banking Act before the end of the 117th Congress.
The only problems? The omnibus may not pass. And Mitch McConnell.
Up until last week, cannabis banking reform looked like it might finally get a vote in the Senate as negotiations around the National Defense Authorization Act progressed. But the NDAA, as approved last week in the House, didn’t have any version of the SAFE Banking Act tucked inside.
The good news for proponents of SAFE Banking is that this effort is still a priority for Senate Majority Chuck Schumer – a pretty good legislative ally to have, as these things go.
The tentative deal Schumer has struck with Republicans would include a version of SAFE Banking that’s been modified to address concerns we reported from the Department of Justice. There’s also two cannabis-related bills: the HOPE Act, which provides the states with federal funds to expunge non-violent cannabis offenses, and the GRAM Act, which would protect the gun ownership rights of cannabis offenders in legalized states.
But the NDAA and omnibus aren’t interchangeable. While the NDAA is a must-pass bill with six decades of Congressional muscle memory built around it, an omnibus is never a sure thing. The federal government will get funded, but when and how are fluid.
And although cannabis banking reform is popular and bipartisan, top Senate Republicans remain opposed. McConnell took to the floor to rail against extraneous policy priorities in the NDAA last week, and he also suggested Republicans would continue to oppose them in “our subsequent conversations about government funding.”
Late last week, we asked the lead Republican on these negotiations – Sen. Steve Daines of Montana – what would be next for cannabis banking reform with the NDAA off the table.
His response: “Good question.”
Daines told us that an omnibus would be the most likely vehicle for the SAFE Banking Act at this point. That would be a bit more encouraging if negotiations around the FY2023 spending package weren’t stalled out, with the two parties still tens of billions of dollars apart on a topline figure.
When we asked whether SAFE Banking’s change of vehicle would result in policy tweaks to the legislation, Daines pointed instead to the broader fight happening over the omnibus.
“I’ll tell you what — there’s not going to be an omnibus unless there’s agreement to a topline. Republicans are standing very unified and strong on these funding levels, and Democrats – it’s going to get filibustered in the Senate. So if they want to test us on that, Democrats are gonna lose that vote. We will be very firm on this.”
In 2023, a standalone vote on a cannabis package is certainly a possibility, especially with Democrats in control of the Senate next year.
For now, we like to imagine that SAFE Banking is like a truck trying to cross a river. For a moment, it looked like the NDAA would be the best bridge to cross – until someone slapped a “NO TRUCKS” sign out in front.
Thankfully, there’s an omnibus-shaped bridge a little ways down the riverbank, except it hasn’t quite been finished yet. And the folks building the bridge haven’t decided whether they’re going to allow trucks yet. Also, the river is made of lava.
– Brendan Pedersen
📅
What we’re watching
→ | Tuesday: The House Homeland Security Committee will hold a hearing on “examining the operations of the Office of Intelligence and Analysis.” The Senate Homeland Security Committee has a hearing on sexual abuse of female inmates in federal prisons. |
The House Committee on Oversight and Reform will have a hearing on the “evolution of anti-democratic extremist groups and the ongoing threat to democracy.”
The House Financial Services Committee will have a hearing on the collapse of FTX. Sam Bankman-Fried, the founder and former CEO, and John Ray, the current CEO, are scheduled to testify. The Senate Rules Committee will have an oversight hearing on the U.S. Capitol Police. USCP Chief Thomas Manger will testify.
→ | Wednesday: The House Ways and Means Committee will have a hearing on promoting sustainable environmental practices through trade policy. The House Science Committee has a hearing about building regional innovation economies. The House Oversight Committee will have a hearing about the rise of anti-LGBTQ violence in the U.S. |
The Senate Banking Committee will have a hearing on FTX featuring Kevin O’Leary from “Shark Tank” and other witnesses
→ | Thursday: The House Judiciary Committee will have a hearing on the Uvalde school massacre and gun violence. |
– Jake Sherman
👀
Who we’re watching
→ | House Minority Leader Kevin McCarthy: McCarthy has 22 days until the speaker vote to kick off the 118th Congress, which is set for Jan. 3. Last week, we scooped that McCarthy met with Rep. Matt Gaetz (R-Fla.), one of his biggest detractors, but to no avail. McCarthy has another week of wheeling and dealing to get the 218 votes he needs to become speaker. Meanwhile, his opponents are being asked who they prefer as the speaker. That’s almost besides the point. The opposition, led by Gaetz and Rep. Bob Good (R-Va.), simply have to take McCarthy down. That will force a debate on who should be next. |
→ | Sens. Patrick Leahy (D-Vt.) and Sen. Richard Shelby (R-Ala.): Leahy and Shelby are the top two lawmakers on the Senate Appropriations Committee. They’re charged with coming up with a way to fund the government through Sept. 2023. Think of this as the last ride of two Old Bulls. Leahy, 82, has been in the Senate since 1975. Shelby, 88, first got elected to the House as a Democrat in 1978, moved to the Senate in 1986 and then became a Republican in 1994. Perhaps no one wants to put together a massive omnibus spending bill as much as these two. |
→ | Sen. Kyrsten Sinema (I-Ariz.): Sinema rocked official Washington on Friday when the high-profile lawmaker announced she was no longer a Democrat and would re-register as an independent. But let’s be real – Sinema will be an independent who gets her committee assignments via the Democrats. She’s voted with Democrats far more often than not, especially on nominations, despite complaints from progressives. Not much will change functionally for the Senate right away. The big issue now for Sinema will be whether she runs for reelection in 2024 and who else gets in the race. |
– Jake Sherman and John Bresnahan
PRESENTED BY INTUIT
Intuit and the Suh Family Foundation are empowering the next generation to build smarter money habits.
FROM THE FINDINGS
Meet our Makers
Last week, The Findings brought together leaders in the public and private sectors to convene about issues of racial equity and sustainability. The event’s conclusion featured four makers representing the ethos of the Punch Up platform in year one, focused on racial equity and sustainability.
The four makers:
→ | Frères Branchiaux Candle Company is an award-winning home and hospitality fragrance company founded by 3 brothers, Collin, Ryan and Austin Gill, all under the age of 18. They donate 10% of their profits to homeless shelters nationwide. |
→ | Seragyi is a contemporary apparel line challenging the norms of “professional” dressing with an unwavering commitment to sustainability. |
→ | Soapbox is a personal care brand that creates hair and body products that empower consumers to change the world by making a purchase with impact. For every Soapbox product a customer buys, the company donates a bar of soap to someone in need. |
→ | Kuzeh Pottery creates artistic and functional ceramics including tableware, kitchenware and bakeware. Owners Pegah Shahghasemi and Lisa Ramber create their work with influences from Persian culture, Mediterranean patterns and nature. |
In their own words…
– Anna Palmer
DOWNTOWN DOWNLOAD
→ | PNC Financial Services Group has hired Capitol Counsel to lobby on “[b]ank regulatory and general financial services issues.” |
→ | Anthem One Inc. has hired the Prenda Group to lobby on “Anthem UVC technology handheld ultraviolet disinfection technology for combatting SARS-CoV-2 (COVID-19) as well as other pathogens, viruses, bacteria and spores.” |
–Jake Sherman
PRESENTED BY INTUIT
Financial literacy enables financial freedom. Learn how.
MOMENTS
8:45 a.m.: President Joe Biden will get his intelligence briefing.
12:10 p.m.: The Bidens will leave the White House for Joint Base Myer-Henderson Hall in Arlington, where they will participate in a Marine Corps Reserve “Toys for Tots” event.
1:30 p.m.: The Bidens will head back to the White House.
The week ahead:
→ | Tuesday: Biden will host a ceremony on the South Lawn celebrating passage of the Respect for Marriage Act. |
→ | Wednesday: Biden will host the U.S.-Africa Leader Summit. He will speak at the U.S.-Africa Business Forum. In the evening, Biden will host a dinner for the summit at the White House. |
→ | Thursday: Biden will participate in the African Union’s Agenda 2063 and the summit’s closing session. |
→ | Friday: The Bidens will head to Wilmington, Del. |
CLIP FILE
NYT
→ | “Biden Is Bringing Africa’s Leaders to Washington, Hoping to Impress,” by Declan Walsh in Nairobi |
WaPo
→ | “Japan moves to shed pacifist ways with major defense buildup,” by Michelle Ye Hee Lee in Tokyo and Ellen Nakashima in D.C. |
→ | “Ukrainian MP who idolizes Reagan tries to win over today’s Republicans,” by Jeff Stein in Kyiv |
WSJ
→ | “Investors Grow More Confident Fed Will Pull Off a Soft Landing,” by Akane Otani |
AP
→ | “Young voters’ enthusiasm for Democrats waned during midterms,” by Will Weissert and Hannah Fingerhut |
USA Today
→ | ”Republican Arizona Gov. Doug Ducey ordered shipping containers be used as a border wall,” by Anita Snow and Ross D. Franklin |
PRESENTED BY INTUIT
A strong financial education can lead to a brighter future — but personal finance skills are not regularly taught in classrooms.
That’s why Intuit and the Suh Family Foundation are partnering to bring financial literacy education to high school students across the nation. Their workshops and trainings equip teachers with a financial literacy curriculum, while providing skills-building resources to teach their students better money habits. The programming is designed to empower and prepare students on real-world topics such as budgeting, taxes, maintaining credit and understanding debt.
Intuit’s free financial literacy curriculum includes live workshops, and mobile-friendly courses filled with interactive content that can be taught in class or at home at a student’s own pace.
Discover how Intuit and the Suh Family Foundation are setting students up for success.
Editorial photos provided by Getty Images. Political ads courtesy of AdImpact.
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 PremiumThe 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 archivePremium Policy: The Vault takes you inside the corridors of power from Washington to Wall Street. Enjoy the benefits of a traditional Premium subscription with added weekly coverage, quarterly briefings, exclusive interviews with top lawmakers and more.