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THE TOP
Where is the CR?
Happy Monday morning. We’re only publishing AM newsletters this week. We’ll have text alerts and special editions as the news necessitates.
Where we are. It’s Monday morning. Federal agencies run out of money Friday night at midnight. And there’s still no bipartisan deal on a government funding bill. Which isn’t great news.
Now, there’s not going to be a government shutdown. But there are a lot of different dynamics we need to run down this morning as Congress heads into its last week in session of 2024.
And remember — everything has been slower and dumber than it should be throughout the 118th Congress, so why should this week be any different?
The main issue over the last few days has been a late round of haggling over economic assistance to farmers as part of a one-year extension to the farm bill. This extension is supposed to ride on the CR.
Initially, Hill leaders on both sides were envisioning a simple trade: They’d divert funding approved under the Inflation Reduction Act — money meant for the National Resources Conservation Service — in the budget baseline in exchange for direct economic aid to farmers.
But Speaker Mike Johnson opposed that trade, likely given the hyperpolitical nature of the IRA and President-elect Donald Trump’s desire to gut the legislation during the next Congress.
So Democrats smelled an opportunity. If Johnson so badly wanted direct economic assistance to farmers, House Minority Leader Hakeem Jeffries and Senate Majority Leader Chuck Schumer would ask for a pound of flesh in return.
Democrats floated several asks:
– The federal government would pay 100% of the cost of rebuilding the Francis Scott Key Bridge in Baltimore. This could run to $2 billion or more.
– A trade deal that would allow duty-free access for Haitian apparel and textile imports.
– Reauthorization of the African Growth and Opportunity Act, which permits duty-free imports for hundreds of products from sub-Saharan African countries.
– Funding to build museums on the National Mall to honor women and Hispanics.
– The Second Chance Act, which aims to help the reentry of convicted criminals back into communities.
Another question here is what happens to the massive health deal that congressional leaders were envisioning as part of the CR package. On Friday, we reported that congressional negotiators had cobbled together an agreement that would include a major overhaul for pharmacy benefit managers, reauthorization of the SUPPORT Act, Medicare telehealth flexibility extensions and an extension of the Pandemic and All-Hazards Preparedness Act. This would be included in the CR as well.
It’s important to keep in mind the incentives here. Johnson isn’t going to shut the federal government down. Plus Trump and Senate Republicans don’t want any distractions either. But the Louisiana Republican doesn’t want to give away too much here, not with a floor vote for speaker looming on Jan. 3. But he wants the ag money. Jeffries understands this, which is why he can press hard for concessions from Johnson — especially with the speaker insisting on pushing for the agriculture payment provision.
So there will be a deal. Democrats know Johnson must rely on them to help pass it, maybe even provide a majority of votes. House GOP leaders are probably going to have to take the CR up under suspension, meaning it will need a two-thirds majority to pass.
Timing issues. We have to imagine that Johnson is going to want to stick to the 72-hour rule for floor action on this package. That means if congressional leaders release the bill today, the House may not vote until Thursday.
The Senate will have a cloture vote on the FY2025 defense authorization bill today at 5:30 p.m. That sets up a final vote on Wednesday minus any time agreement.
Now, if the Senate gets the CR on Thursday, there’s a possibility it could clear the measure that day. Never, ever underestimate “Senate magic,” especially with a long recess, Christmas and the New Year lurking on the other side of this vote. But Friday feels more likely.
Internal political impact. Johnson has spent his entire speakership vowing to avoid year-end, catch-all, “Christmas tree” legislation. He’s resisted pleas from Democrats and Republicans alike to try to assemble an omnibus that would keep the federal government funded until next Sept. 30. Or even two minibuses. Or whatever entity or vehicles were necessary.
But it’s now Dec. 16, with Johnson and other Hill leaders readying a CR that will fund the federal government until mid-March alongside a number of provisions that have little to do with broader federal operations.
This legislation is going to attract a lot of opposition from House Republicans. Be ready for a food fight.
Also: Former GOP Rep. Kelly Armstrong is now the governor of North Dakota. Armstrong was sworn in on Friday. His resignation from Congress means the House ratio is currently 219 Republicans to 211 Democrats with five vacancies.
— Jake Sherman and John Bresnahan
The Daily Punch 🥊 With new episodes every weekday morning, The Daily Punch brings you inside Capitol Hill, the White House and Washington all in less than 15 minutes. Listen to today’s episode now.
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THE NOMINEES
RFK on the Hill this week for the first time since nomination
President-elect Donald Trump’s Cabinet nominees will be on Capitol Hill again this week, as the incoming administration pushes for confirmation of the incoming president’s top officials.
Robert F. Kennedy Jr., Trump’s choice to lead the Department of Health and Human Services, will kick off his meetings with senators today. Kennedy will meet with more than two dozen senators this week alone. Today’s sessions will include Markwayne Mullin (R-Okla.).
Other GOP senators RFK Jr. will sit down with this week include: Bill Hagerty (Tenn.), Cindy Hyde-Smith (Miss.), James Lankford (Okla.), Josh Hawley (Mo.), Katie Britt (Ala.), Lindsey Graham (S.C.), Lisa Murkowski (Alaska), Mike Crapo (Idaho), Marsha Blackburn (Tenn.), Rand Paul (Ky.), Rick Scott (Fla.), Roger Marshall (Kan.), Ron Johnson (Wis.), Shelley Moore Capito (W.Va.), Steve Daines (Mont.), Ted Budd (N.C.), Ted Cruz (Texas), Tim Scott (S.C.), Tom Cotton (Ark.), Tommy Tuberville (Ala.) and Dan Sullivan (Alaska).
Also on RFK’s dance card for the week: incoming Senate Majority Leader John Thune and incoming Senate Majority Whip John Barrasso.
Former Rep. Tulsi Gabbard (Hawaii), Trump’s nominee to be director of national intelligence, will meet with Johnson and Jerry Moran (R-Kan.) today. Moran is on the Senate Intelligence Committee, which will process Gabbard’s nomination. Johnson is the No. 2 Republican on the Senate Homeland Security and Government Affairs Committee.
Pete Hegseth, Trump’s nominee to run the Defense Department, won’t be on Capitol Hill today. He is beginning the “murder boards” for his confirmation hearing. He’ll be back on Capitol Hill on Tuesday for meetings.
Scott Bessent, Trump’s nominee to be treasury secretary, won’t be on Capitol Hill today either. Bessent will meet with more senators later this week.
Kash Patel, the FBI director nominee, isn’t on the Hill today.
— Jake Sherman
Weekday mornings, The Daily Punch brings you inside Capitol Hill, the White House, and Washington.
Listen NowDRONE WATCH
Congress drones on about … drones
With drone fever sweeping the East Coast — and now even California — lawmakers in both parties have been calling for Congress to take some kind of legislative action to deal with the issue.
New York’s Democratic Gov. Kathy Hochul complained “This has gone too far” following the closure of a local airport due to drone activity.
Over the weekend, Senate Majority Leader Chuck Schumer called for the deployment of new technology to help state and local authorities deal with the issue. Schumer also said he’ll co-sponsor legislation granting local governments more help to respond to the wave of drone sightings.
Here’s Schumer:
“Currently, local officials are trying to find answers to this serious problem with their hands tied behind their backs. If the federal government has the technology to address the epidemic of non-stop drone sightings, we should do everything we can to help.”
Schumer knows a story when he sees one.
Reps. Chrissy Houlahan (D-Pa.) and Andrew Garbarino (R-N.Y.) have asked Speaker Mike Johnson and House Minority Leader Hakeem Jeffries to include in the CR their proposed legislation to expand “counter-unmanned aircraft systems” authority for federal agencies and even some local law enforcement (on a trial basis.)
Rep. Josh Gottheimer (D-N.J.), a candidate for governor, has a new bill that would ensure “law enforcement have what they need to track these drones & protect families from unidentified drone activity making Jersey the Wild West.”
Yes, some of the droning about drones is clearly misguided or hype. Rep. Jeff Van Drew’s (R-N.J.) wild statement about an Iranian “mother ship” that controlled the drones lurking off the East Coast was dismissed by the Pentagon as false. Van Drew has backed off about the Iranians but not the drone issue.
Sen. Andy Kim (D-N.J.) went on a drone hunt with some local cops. Kim had a lot of observations about what he saw, although the New Jersey Democrat ultimately added that “I’ve concluded the possible drone sightings pointed out to me were almost certainly planes.”
But there are clearly widespread problems with drones straying into restricted or controlled airspace, and it’s getting worse. Two men were arrested Saturday night in Boston for operating a drone unsafely near Logan Airport.
We’ve also reported on the NFL and other sports leagues seeking help from Congress to stop drone flights over stadiums. There are more than 2,800 incidents during 2023 alone.
– John Bresnahan
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📆
What we’re watching
Monday: The House Rules Committee will meet on the Midnight Rules Relief Act.
Tuesday: The Senate Judiciary Committee will hold a hearing on legalized sports gambling.
Wednesday: The Joint Economic Committee will hold a hearing called “Trade wars and higher costs: The case against Trump’s tariffs.”
– Jake Sherman
… AND THERE’S MORE
The Campaign. Jimmy Patronis, the chief financial officer of Florida now running to succeed former Rep. Matt Gaetz (R-Fla.), is airing a new spot in Panama City and Pensacola. The spot starts with footage of former President Donald Trump after the attempted assassination in Pennsylvania.
Patronis says that when Trump asked him to run for Congress and go to Washington and fight for him, he said, “Yes sir.”
Downtown Download. New York University has hired Cornerstone Government Affairs to monitor “federal policy regarding higher education and the impact of federal policy on New York University.”
– Jake Sherman
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Wells Fargo serves more than 10% of small businesses nationwide.
MOMENTS
ALL TIMES EASTERN
10 a.m.
President Joe Biden will get his daily intelligence briefing.
12:15 p.m.
Biden will attend an event with Acting Secretary of Labor Julie Su honoring the nation’s labor history.
7:45 p.m.
Biden and First Lady Jill Biden will host a Hanukkah reception. Second Gentleman Doug Emhoff will attend.
CLIPS
NYT
“Grand Jury Said to Hear Evidence Against Chief Adviser to Mayor Adams”
– William K. Rashbaum, Dana Rubinstein, Emma G. Fitzsimmons and Chelsia Rose Marcius
WaPo
“Trump’s executive action strategy: Go ahead, sue me”
– Isaac Arnsdorf and Jeff Stein
WSJ
“Why Musk Doesn’t Have Access to SpaceX’s Biggest Government Secrets”
– Joe Palazzolo, Emily Glazer and Micah Maidenberg
Foreign Affairs
“The Price of American Retreat”
– Mitch McConnell
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Beyond serving our own customers, our goal is to be prepared for the unknowns, which means being financially strong, strategically well positioned, and having the operational and management capabilities to not just survive, but to be a source of strength.
It’s what enabled us to lend support to a smaller bank in a time of need in 2023, which helped stabilize the banking system, ease consumer concerns, and keep a challenge from becoming a much broader crisis.
We’re proud of the important role we play for our customers, for our communities, and in the U.S. economy.
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Editorial photos provided by Getty Images. Political ads courtesy of AdImpact.
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