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PRESENTED BY
BY JOHN BRESNAHAN, ANNA PALMER, JAKE SHERMAN AND HEATHER CAYGLE
WITH MAX COHEN AND CHRISTIAN HALL
THE TOP
Happy Wednesday morning.
Let’s start by saying this: Senate Majority Leader Chuck Schumer came into this week with high hopes. He wanted to confirm Judge Ketanji Brown Jackson to the Supreme Court. He was eager to pass a bipartisan $10 billion Covid preparedness package. And there was talk of clearing a House-passed bill to ban Russian oil imports and strip Vladimir Putin’s nation of its preferred trading status.
But here we are on Wednesday morning, and as of now, it’s entirely possible that all that Schumer will get done this week is confirming Jackson’s nomination to the Supreme Court.
To be sure, confirming a Supreme Court justice in a 50-50 Senate is a major accomplishment. But the Senate may leave lot on the cutting room floor as senators head home for the Easter recess.
→ | Covid relief. Senators in both parties have come to the conclusion that there simply isn’t enough time to pass the $10 billion Covid bill this week. Jackson’s nomination – the overwhelming priority for both Schumer and President Joe Biden – will come to a final vote either Thursday or Friday. Schumer won’t let the Senate get bogged down in anything that jeopardizes that timetable. |
That means the Covid prep bill – which the White House has been demanding for months – gets shelved once again. It’s the second time in recent weeks this has happened to Democratic congressional leaders, although in this case it was a dispute over immigration and border security that forced the delay, not an internal party revolt. This is a defeat for the White House and Hill Democratic leadership, which has been shouting that it needs this money.
In exchange for speeding up consideration of the Covid bill, Senate Republicans are demanding a vote on an amendment extending use of Title 42, the public health policy provision the Biden and Trump administrations used to stem the flow of hundreds of thousands of migrants at the southern border during the pandemic. Under pressure from pro-immigration groups, Biden has ordered an end to use of the policy by May 23, potentially allowing a new wave of migrants to claim asylum in the United States.
This is incredibly tricky politics for Democrats. As we laid out in our Midday edition Tuesday, endangered 2022 Democratic Sens. Catherine Cortez Masto (Nev.), Mark Kelly (Ariz.), Maggie Hassan (N.H.) and Raphael Warnock (Ga.), have joined with their moderate colleagues Sens. Joe Manchin (D-W.Va.), Kyrsten Sinema (D-Ariz.) and Jon Tester (D-Mont.) in forcefully opposing the administration’s reversal on this issue. If a Title 42 amendment came to the floor during debate on the Covid package this week, there’s a real chance Democratic leaders would be unable to defeat it.
So in sum, Schumer and Senate Minority Leader Mitch McConnell need to reach a deal amendments before the Covid package can be considered. And Democrats need to come to an internal consensus on how to respond to ongoing immigraton problems at the U.S.-Mexico border. Biden has been unable to do so since the start of his presidency, opening him to criticism from pro and anti-immigration forces in both parties. Schumer said Tuesday that he didn’t believe the Covid bill should be held “hostage” to other policy issues like Title 42.
→ | PNTR and the oil ban. Schumer and Republicans have been involved in some complex negotiations on the Russia PNTR legislation during the last few weeks. But last night, Sen. Mike Crapo of Idaho, ranking Republican on the Finance Committee, told us that he and Schumer still haven’t resolved the concerns of various senators. |
Which raises an obvious question: If Congress can’t clear these two bills now, when there’s clearly strong bipartisan support in both chambers, will it ever be able to do so?
The Russia PNTR package seems relatively easy to solve, and there’s still an outside chance it gets done this week. The House passed this same legislation by a 424-8 margin.
→ | On Covid funding: Now that Congress is leaving town without having done anything on this issue, what’s next on Covid funding? We’ve heard many lawmakers and aides speculate that Congress will have to pair another round of Ukraine aid with Covid funding at some point in May or June. This would be a multi-billion dollar supplemental package that would require heavy involvement from the leadership and White House. |
Speaker Nancy Pelosi told us Tuesday that the $10 billion Congress planned to pass this month wasn’t enough and party leaders would need to craft a new package before the summer.
Of course, when Congress gets back in a few weeks, it will have other priorities on tap as well. Schumer has said he wants to revive a reconciliation package. The Hill will also need to move to a formal conference negotiation process on the chips bill.
Biden administration officials are warning that the federal agencies will be unable to keep responding to the pandemic without a fresh infusion of money. White House Press Secretary Jen Psaki lashed out at Republicans after all 50 GOP senators – joined by Finance Committee Chair Ron Wyden (D-Ore.) – voted against cloture Tuesday on a legislative vehicle for the Covid package. This “test vote” was seen as a measure of whether the Covid proposal could win Senate backing. Here’s Psaki:
“It is disappointing that Senate Republicans voted down consideration of a much-needed bill to purchase vaccines, boosters, and life-saving treatments for the American people. As we have repeatedly said, there are consequences for Congress failing to fund our COVID Response. The program that reimbursed doctors, pharmacists and other providers for vaccinating the uninsured had to end today due to a lack of funds. America’s supply of monoclonal antibodies that are effective at keeping people out of the hospital will run out as soon as late May. Our test manufacturing capacity will begin ramping down at the end of June.”
Of course, Congress could just pick up the Covid proposal it’s already got in hand when it returns from the Easter recess. But the two sides will still have to resolve the immigration issue, which isn’t going away.
“It’s pretty solid,” Sen. John Cornyn (R-Texas) said. “The bill is paid for … So I don’t think it’s going away. It’s fine.”
Also: The Canvass: K Street is officially out right now with its first survey. Just like we’ve done on Capitol Hill, we’ve put together an anonymous survey of senior downtown figures – vice presidents, managing directors, principals in-house at companies, those working for outside networks such as labor unions and associations, as well as hired guns at lobbying and public affairs firms. Anonymity is fully guaranteed. If you think you qualify to participate, sign up here.
PRESENTED BY TOYOTA
You’ve heard of a baker’s dozen. There’s also the Toyota dozen. That’s the 12 states Toyota will have engineering and manufacturing in once our lithium-ion battery plant opens in North Carolina.
Last year Toyota sold more vehicles in the United States than any other auto manufacturer.
To our colleagues in Kentucky and Indiana, Tennessee and Mississippi, West Virginia and Arizona, California and Texas, Michigan and Missouri and Alabama: We couldn’t have done it without you.
OIL AND GAS TIME
Dems prep for oil execs grilling
Soaring prices at the pump – a key feature of the worst inflation seen in four decades – are causing major economic anxiety for average Americans right now. And that dour outlook is showing up in poll after poll, creating what could be a huge political liability for Democrats heading into the midterm elections.
So House Democrats are going to call a group of oil company CEOs before a congressional panel today to grill them on the issue.
Reality check: There’s not much Congress can do to alleviate sky-high gas prices in the short term, especially with the war in Ukraine continuing to roil world oil markets. But Democrats say they must do something on it, especially as Republicans repeatedly hammer them over inflation and the economy.
One political option for Democrats is to pin the problem on Big Oil. It’s a 50-year-old tactic House Democrats will try out this morning during an Energy and Commerce Oversight subcommittee hearing.
The panel is bringing prominent oil company executives in for questioning during a hearing titled “Gouged at the Gas Station: Big Oil and America’s Pain at the Pump.” So it’s pretty clear where this is heading.
The executives appearing today include:
→ | Darren W. Woods, president and CEO, ExxonMobil |
→ | David Lawler, chairman and president, BP America, Inc. |
→ | Michael K. Wirth, chairman and CEO, Chevron Corporation |
→ | Gretchen Watkins, president, Shell USA, Inc. |
→ | Richard E. Muncrief, president and CEO Devon Energy Corporation |
→ | Scott D. Sheffield, CEO, Pioneer Natural Resources Company |
Of note: We’re told that these oil companies are mostly preparing for this session using in-house government affairs teams. But former Rep. Joe Barton (R-Texas), a former chair of the Energy and Commerce Committee, has been prepping Pioneer officials for the hearing, according to multiple sources. We’ve seen Barton around the Capitol a number of times in recent days.
→ | Here’s Energy and Commerce Committee Chair Frank Pallone (D-N.J.) on his goal for the hearing: “We’re basically gonna hold the oil companies accountable. I mean, they’ve been price gouging, and they keep the prices artificially high. And we want to call them out.” |
If you want to get the full flavor for the tenor of today’s hearing, we have an excerpt from Pallone’s opening statement.
“We are here today to get answers from the Big Oil companies about why they are ripping off the American people. At a time of record profits, Big Oil is refusing to increase production to provide the American people some much needed relief at the gas pump. Instead, they are buying back their stock at an estimated cost of about $40 billion this year. Big Oil is lining their pockets with one hand and taking billions in taxpayer subsidies with the other. Meanwhile, the American people are getting ripped off as these companies choose to keep production low so that their own profits stay high. …
“After decades of insisting that Big Oil is the path to American energy independence, these same companies are refusing to help American consumers suffering from the fallout from Putin’s war. And they refuse to help while still taking billions of dollars in subsidies the U.S. taxpayer gives them to produce more oil at more affordable prices.”
Rep. Diana DeGette (D-Colo.), who chairs the Oversight subcommittee, put it this way: “When we see a problem, we bring the people in to talk about how we can solve it. So that’s what I’m looking forward to doing. I want to know why gas prices are remaining so high… It should be a good conversation.”
One Democrat on the panel, who requested anonymity to speak candidly, predicted several colleagues would likely “whine about price gouging” when in reality the price of oil, as a global commodity, is largely beyond Congress’ ability to impact in the short term.
Democrats have considered legislative options to combat Americans’ pain at the pump. The leadership has discussed directly sending consumers money in the form of gas vouchers. The proposal has fizzled out.
→ | Rep. Cathy McMorris Rodgers (Wash.), the committee’s top Republican, slammed the hearing as “a big distraction.” And Rep. Fred Upton (R-Mich.), another senior GOP member of the panel, said he was disappointed that Energy Secretary Jennifer Granholm wasn’t testifying as well. |
“It’s [Democrats] trying to divert the blame from their policies that have had a direct impact on shutting down American energy and shutting down American pipelines, the [Keystone] XL pipeline, and resulting in gas prices going up,” Rodgers said.
Republicans say that environmental restrictions and other regulations are preventing oil companies from drilling – and they will push back on the idea that these companies are purposely gouging consumers.
House Minority Whip Steve Scalise – an Energy and Commerce member who focuses heavily on this issue – blamed President Joe Biden’s restrictions on the oil industry for high gas prices.
“There is a whole laundry list of roadblocks that the Biden administration has put in front of the oil and gas companies so that they can produce energy in America. And it’s led to limited supply, it’s led to higher prices, and higher reliance on dictators like Putin. And Biden’s done it deliberately.”
→ | Republicans are bringing in former President Donald Trump’s one-time national security adviser H.R. McMaster in front of the panel “to talk about the dangers of being dependent upon others for fossil fuels, for oil,” Rodgers noted. |
BTW: We’ve seen hearings like this before on Capitol Hill. You’ll recall former Energy and Commerce Committee Chair Henry Waxman (D-Calif.) bringing tobacco CEOs to Capitol Hill or the baseball steroid hearings. But, in this instance, Democrats are zooming in on a topic that is impacting nearly every American.
New: Scalise’s first quarter fundraising
House Minority Whip Steve Scalise raised $10.9 million in the first quarter of 2022, bringing his total to $39 million raised this cycle. Scalise transferred $5.5 million to the NRCC in the first quarter — he has sent $17.9 million to the committee this cycle. This is a huge amount of money from the No. 2 House Republican.
Scalise has become known in GOP circles for being an exceedingly good online fundraiser. He pulled in $4.6 million online, part of a $22.2 million haul through digital this cycle. He had 56,098 online donors in the first quarter of the year.
→ | Former Sen. Bob Corker (R-Tenn.) still has an eye-popping $6.5 million in his campaign account. He’s barely spending any money. |
→ | The Defending Main Street super PAC, which supports moderate Republicans, raised $650,000 in March. The United Association of Journeymen & Apprentices of the Pipe Fitting Industry gave $450,000, the IAFF Political Education Fund donated $150,000 and the International Association Of Firefighters Interested in Registration And Education PAC chipped in $50,000. |
PRESENTED BY TOYOTA
Toyota is energizing America, uplifting communities and further leading the way on putting more electrified vehicles on the road.
FRONTS
MOMENTS
10:15 a.m.: President Joe Biden will get his daily intelligence briefing. … A group of House Democrats will speak about the Iran deal negotiations.
Noon: Senate Republicans will hold a news conference to discuss gas prices.
12:45 p.m.: Biden will address the North America’s Building Trades Unions’ annual conference.
1 p.m.: House Foreign Affairs Ranking Member Mike McCaul (R-Texas) will join with GOP members of his committee to talk about the Iran negotiations.
1:50 p.m.: Vice President Kamala Harris will swear in Randi Charno Levine to be ambassador to Portugal.
2:30 p.m.: Jen Psaki will brief.
4:15 p.m.: Biden will sign the postal service reform bill in the State Dining Room.
PRESENTED BY TOYOTA
Toyota is energizing America and uplifting our communities.
CLIP FILE
NYT
→ | “The End of the (Pipe)line? Germany Scrambles to Wean Itself Off Russian Gas,” Katrin Bennhold in Lubmin, Germany |
→ | “Why Tracking Putin’s Wealth Is So Difficult,” by Mike McIntire |
→ | “Justice Dept. Investigation of Jan. 6 Confronts Sprawling Cast of Characters,” by Alan Feuer, Luke Broadwater and Maggie Haberman |
WaPo
→ | “Okla. lawmakers approve bill to make performing an abortion illegal,” by Caroline Kitchener |
→ | Paul Kane: “Fred Upton calls it quits, leaving a much different House” |
CNN
→ | “Greitens’ ex-wife says she has photos, documents to support abuse allegations,” by Eric Bradner and Sara Murray |
WSJ
→ | “Biden Administration Stymies Russia Debt Payments,” by Ian Talley and Caitlin Ostroff |
→ | “U.S., EU to Impose More Sanctions on Russia After War-Crimes Reports,” by Laurence Norman in Berlin and Ian Talley and Andrew Restuccia in Washington |
→ | “White House Considers New ATF Pick,” by Sadie Gurman |
Bloomberg
→ | “China’s Daily Covid Cases Top 20,000 as Isolation Expands,” by Bloomberg News |
Politico
→ | “Mark Kelly’s breaks with Biden pile up,” by Burgess Everett |
PRESENTED BY TOYOTA
You’ve heard of a baker’s dozen. There’s also the Toyota dozen. That’s the 12 states Toyota will have engineering and manufacturing in once our new lithium-ion battery plant opens for business in North Carolina.
It’s all part of our plan to energize America, uplifting communities and further leading the way on putting more electrified vehicles on the road.
For the first time ever, thanks to the hard work of the nearly 40,000 people we have from coast to coast, last year Toyota sold more vehicles in the United States than any other auto manufacturer. 76% of which rolled off the line right here in North America.
To our colleagues in Kentucky and Indiana, Tennessee and Mississippi, West Virginia and Arizona, California and Texas, Michigan and Missouri and Alabama: We couldn’t have done it without you.
Editorial photos provided by Getty Images
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