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PRESENTED BY
THE TOP
Happy Wednesday morning.
News: Speaker Kevin McCarthy has had no – and we mean zero – direct contact with the White House on the debt limit since Feb. 1. McCarthy hasn’t spoken to President Joe Biden, new White House Chief of Staff Jeff Zients or any other senior aide on the issue. He hasn’t heard from Treasury Secretary Janet Yellen either. It’s been radio silence.
Biden and McCarthy did publicly exchange letters on Tuesday regarding the debt limit, but these were little more than press releases from each side.
Over the next few weeks, we expect McCarthy to ratchet up his rhetoric on the debt limit. He’s trying to jumpstart negotiations. We’ll see if this tactic works. The White House and senior Democratic lawmakers are pretty certain they can beat Republicans down and force them to pass a clean debt-limit hike.
There are a few dynamics you should be aware of on this issue.
No. 1: McCarthy is considering having the House pass a short-term debt limit increase – just a few months long – with some modest budgetary savings provisions attached. This move would, in House Republican leadership’s view, put the ball in Senate Democrats’ court. If this tactic works, a default on the federal government’s $31.4 trillion debt would be avoided and Republicans could still keep the pressure on Democrats for a permanent solution.
House GOP leaders also believe they’ll need to lift the debt limit by June, just six weeks after Congress returns from this upcoming recess.
No. 2: House Republicans are exceedingly unlikely to pass a FY2024 budget resolution before the Treasury Department hits the default deadline. We scooped this in the Midday edition Tuesday. GOP leadership is concerned that any fight over the budget resolution would be a distraction from the need to pass a debt limit increase. Of course, McCarthy may not be able to pass a budget resolution anyway. And Republicans have hammered Democrats for not passing a budget in the past, including last year. But who said members of Congress are consistent?
No. 3: House Financial Services Chairman Patrick McHenry (R-N.C.) delivered a McCarthy approved message on the debt limit during a Punchbowl News event Tuesday. McHenry, a top leadership ally who can also cut deals with Democrats, told us this about the debt limit: “I don’t see how we get there. And this is a marked change from where I’ve been. I don’t even see a path [to a debt ceiling agreement].”
How should you read this? This is McHenry trying to shock the political system a little bit.
No. 4: Federal Reserve Chair Jay Powell will be in the Capitol today to talk to the Republican Study Committee. The RSC is the House Republicans’ largest caucus. We’ll be very curious if he talks about the debt limit. Powell has been firm that Congress needs to act on the debt limit in a timely manner.
A reality check on TikTok
It’s been a week since TikTok CEO Shou Zi Chew testified before Congress, igniting what appeared to be a groundswell of support among lawmakers for banning the popular social platform.
The reality is much murkier.
Sen. Josh Hawley (R-Mo.) will try — and likely fail — later today to unanimously pass a bill banning the app from operating in the United States. A separate bipartisan, White House-backed bill to crack down on foreign tech threats is getting hammered by the right. And, at least in the Senate, party leaders aren’t committing to anything just yet.
At the same time, few lawmakers are willing to stick their neck out to defend TikTok either. But that’s what will be required if and when a senator objects today to Hawley’s proposal to immediately ban the app.
Not even Sen. Bernie Sanders (I-Vt.) would align himself with progressives in the House, who have been urging caution when it comes to targeting TikTok. Here’s what Sanders told us when we asked him if he favors a ban:
“I think there are very, very legitimate concerns about what social media is doing to the mental health of Americans. It’s not just TikTok. It’s across the board.”
This gets at the conundrum for Congress on TikTok. Lawmakers talk about how bad they think TikTok is, but very few are willing to take the political hit for banning an app that 150 million Americans use.
Then there’s Sen. Marco Rubio. The Florida Republican has been actively making the case to ban TikTok for months, and he feels vindicated after last week’s debacle of a hearing. But he’s under no illusions that it’ll be easy.
“Look, banning a company is a pretty dramatic step,” Rubio told us. “So I do think we owe people more than just, ‘TikTok is bad, trust me.’”
Sen. Rand Paul (R-Ky.) stands alone on the issue among Republicans, telling Fox News on Tuesday that he opposes banning the app over First Amendment considerations. Paul will likely be the objector on the floor to Hawley’s bill.
“Clearly, what we have right now is not working,” said Senate Minority Whip John Thune, the lead Republican on the bipartisan bill and a ban supporter.
“We’ve got an approach that is bipartisan, rules-based, and deals not just with the threat of today but the threats of tomorrow.”
—Jake Sherman, John Bresnahan and Andrew Desiderio
PRESENTED BY META
Field trips in the metaverse will take learning beyond the textbook.
Students learning about prehistoric eras will use virtual reality to take field trips to the Ice Age and visit the woolly mammoths. As a result, students will not only learn their history lessons – they’ll experience them.
The metaverse may be virtual, but the impact will be real.
ISSUE DU JOUR
What NCAA President Charlie Baker wants Congress to do on NIL
The House Energy and Commerce Committee will hold a hearing today on “name, image and likeness” – the NCAA standard that allows athletes to earn money while playing college sports.
NIL is a huge issue in college athletics. And it’s getting plenty of attention this week, with the Final Four kicking off Saturday in Houston. Go UConn Huskies, by the way.
The ability for college athletes to get paid while they compete has changed the landscape of amateur athletics. Yet as of now, the NIL outlook is the Wild Wild West in many ways. Athletes have just started to earn money and universities are grappling with setting up programs and instituting standards.
Charlie Baker, the former two-term Republican governor of Massachusetts, recently took the helm of the NCAA. Baker won’t be testifying at the E&C hearing today, but he expects to in the near future. We spent some time speaking with Baker Tuesday about what he wants to see Congress do in the NIL space.
Baker said he has gotten an “enormous amount of incoming” from Capitol Hill about NIL since becoming NCAA president earlier this month. We’ve seen Baker on the Hill numerous times recently. He’s met with members of both parties and leadership about NIL and other issues.
Baker’s top priority in the NIL space is to have Congress pass a law to create transparency in the contracting process. He wants lawmakers to institute a “uniform standard contract” for student athletes to use when they sign an NIL deal – not dissimilar from a mortgage contract.
Baker also wants a public “registry of NIL agreements” to shine light on what players are making across the country. Baker said this would benefit student athletes and their families to ensure that they are getting the money they deserve and for corporations so they don’t overpay.
“There’s no sort of basic market mechanisms in place you would normally see in a market like this,” Baker said. “One [athletic director] said to me, ‘Everybody lies.’ And that’s a problem for kids and families and everybody else.”
Baker added that the NCAA is going to try to create an internal program to make NIL agreements public. But he worries that a patchwork of state laws will be unwieldy and is pushing for federal action to set one standard. Here’s more:
“I view this mostly as an opportunity to create some consumer protections for families and student athletes and to help people figure out exactly what this so-called market looks like.
“They don’t know that much about these agreements outside of the ones that they’ve done themselves. And there are no market signals here at this point in time.”
Of course, we all know the big caveat here. It takes a lot of pressure to convince Congress to act on anything. But the NIL market is huge – as is college athletics – so we’ll keep an eye on this going forward.
– Jake Sherman
RETURN TO ROOTS
McCarthy said he’d reform the Intelligence Committee. Is it working?
When Speaker Kevin McCarthy booted California Democratic Reps. Adam Schiff and Eric Swalwell off the House Intelligence Committee in January – a move that infuriated Democrats – his professed goal was to return the panel to its bipartisan focus.
So we wanted to check in and see whether the secretive committee was jiving once again.
Here’s what we can tell you: Intel Committee Chair Mike Turner (R-Ohio) and ranking member Jim Himes (D-Conn.) say they’re ready for a change. That means no more viral clips of partisan clashes from committee hearings or flamethrowing on Twitter or members openly slinging insults at each other.
After the contentious start — and a nudge from their party leaders — Turner and Himes have urged the other members of the panel to hit reset as well. McCarthy and Minority Leader Hakeem Jeffries met with Turner and Himes at the start of this Congress to assert their dedication to bipartisanship.
“This committee has been rededicated to national security, returning from its partisan past,” Turner told us in an interview at the Capitol. “We’re always going to have some issues that we disagree on, but really with national security, 90-95% of the overall issues are bipartisan.”
Himes became Intel’s top Democrat after Republicans blocked Schiff from returning for another term on the committee. In a change from the recent past, Himes and Turner have even appeared on TV together. Himes said he got to know Turner during a bipartisan codel to Ukraine in October.
“We’ve built a very solid relationship,” Himes told us.
In previous Congresses, Trump-related investigations in the House often made the traditionally neutral panel a battleground between Republicans and Democrats.
Former Intel Chair Devin Nunes (R-Calif.) sparred openly with Schiff, especially on issues related to the Russia investigation. Republicans even released their own minority report on the matter, accusing Democrats of engaging in “disinformation” for alleging the Trump campaign colluded with Russia in the 2016 elections.
And Schiff ended up overseeing Trump’s first House impeachment, with witness interviews taking place in the Intelligence Committee’s secure facility in the Capitol.
It’s a stark contrast to the Senate Intel Committee, where Sens. Mark Warner (D-Va.) and Marco Rubio (R-Fla.) have been able to foster a civil working relationship despite the outside political environment. Turner said he’s reached out to his Senate counterparts, hoping to deepen a bicameral relationship with his own panel.
McCarthy’s decision to boot Schiff and Swalwell became a partisan flashpoint earlier this year. Turner and Himes reflect on what happened in different ways.
“It feels a little lonely sometimes,” Himes said. “I always had Adam, who had more experience than I did on the committee, to consult with on anything that was coming up.”
On the contrary, Turner said “it’s been a great change” with the absence of Schiff and Swalwell.
The Intel Committee has been largely wrapped up in work related to U.S. adversaries such as Russia and China, as well as Covid-19’s origins.
However, we expect the big fight this year to come over reauthorizing FISA Section 702, which allows the federal government to conduct targeted surveillance of foreign persons outside the United States.
“There is bipartisan agreement that FISA, including 702, needs to be reformed,” Turner said. “We will take up the issue of the importance of FISA and 702 as a tool to gain intelligence against our adversaries. At the same time, we want to make sure that Americans’ are protected.”
– Mica Soellner
Punchbowl News is excited to kick off the second year of The Punch Up — a platform focused on breaking down silos between the public and private sector on issues of equity.
For Punchbowl News, an awareness of and commitment to facilitating conversations around gender, race, health, the environment and financial literacy is a core value. Punchbowl News has actively used its journalistic platform to convene candid and informative conversations in these areas, providing visibility to discussions that often happen behind closed doors. Check out our mission for 2023 of The Punch Up.
We are excited to continue creating conversation and forward-moving action in this space.
Interested in getting involved? Partnering on an event? Email us at thepunchup@punchbowl.news. We’d love to hear from you.
PRESENTED BY META
PUNCHBOWL NEWS EVENTS
Missed our conversation with House Financial Services Committee Chair Patrick McHenry (R-N.C.) on Tuesday? You can view the full recording here.
… AND THERE’S MORE
The center-left New Democrat Coalition is officially opposing the House Republican energy package on the floor this week. New Dems released a statement saying the group “is ready to find bipartisan solutions to accelerate clean energy deployment and lower energy prices.” Read: The group is willing to pursue permitting reform, but H.R. 1 isn’t the way to do it.
New Dems is a large block of moderate Democrats featuring numerous Frontliners in competitive districts. The pushback here indicates that some Democrats in tough races aren’t being swayed to support H.R. 1. But there are a number of Texas and New Mexico Democrats considering backing the legislation.
In addition, we reported earlier this week that some moderate northeastern House Republicans were skittish about supporting the GOP energy package.
The NRCC is launching a billboard campaign dinging Frontline Reps. Abigail Spanberger (D-Va.), Gabe Vasquez (D-N.M.) and Susan Wild (D-Pa.) over their votes opposing the D.C. crime disapproval resolution.
Here’s an example of the billboard text:
Of course, President Joe Biden signed the disapproval resolution into law after it passed both chambers of Congress. But vulnerable House Democrats were incensed that the White House flip-flopped on its position. The fear was they would be targeted over their vote, which is exactly what is happening here.
— Max Cohen
PRESENTED BY META
MOMENTS
8:30 a.m.: President Joe Biden will get his daily intelligence briefing.
11:20 a.m.: Biden will host the Summit for Democracy virtual plenary.
11:30 a.m.: House Minority Leader Hakeem Jeffries, House Minority Whip Katherine Clark and other House Democrats will host an event on the East Front steps, calling on Congress to address gun violence.
1 p.m.: Karine Jean-Pierre will brief.
2:45 p.m.: Biden will meet with Argentinian President Alberto Fernandez.
5 p.m.: Biden will host a Greek Independence Day celebration.
CLIP FILE
NYT
→ | “U.S.-Israel Tensions Over Judicial Overhaul Burst Into Open,” by Isabel Kershner in Jerusalem |
→ | “Taiwan’s President Heads to the U.S., Bracing for China’s Retaliation,” by Amy Chang Chien and Chris Horton in Taipei, Taiwan |
Bloomberg
→ | “Biden Aide Speaks With China Counterpart as Tension Spikes,” by Peter Martin, Jenny Leonard and Jennifer Jacobs |
AP
→ | “Poll: Cut federal spending – but not big-ticket programs,” by Josh Boak and Hannah Fingerhut |
Editorial photos provided by Getty Images.
PRESENTED BY META
The metaverse will give doctors new tools to make decisions faster.
In the ER, every second counts. Doctors will use the metaverse to visualize scans and quickly make decisions, helping patients get the specialty care they need in a timely manner.
The metaverse may be virtual, but the impact will be real.
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