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IN THIS EDITION

Washington and the world wait on Johnson’s move

Senate GOP divisions scuttle possible deal on Mayorkas impeachment trial

Senate stablecoin bill drops as Warren pushes for Treasury AML boost

The Senate’s challenge to the SEC climate rule

THE TOP

Washington and the world wait on Johnson’s move

Happy Wednesday morning.

If you’re looking for the House Republicans’ foreign aid bill, you’re not alone.

The GOP leadership hasn’t yet released the package to send tens of billions of dollars to Ukraine, Israel and Taiwan. As of late Tuesday evening, the House Appropriations Committee was still working on finishing the text.

But more importantly, Speaker Mike Johnson still doesn’t have a deal on the rule to bring the legislation to the floor, according to senior aides.

If Republicans release the bill at some point today and want to stay true to their 72-hour rule, the GOP leadership won’t be able to hold a floor vote until Saturday. Then the Senate would have to act.

This is a problem. There are congressional delegations scheduled to leave town this weekend for the scheduled congressional recess. Lawmakers also want to head back home to campaign. House leadership aides say they worry about attendance beginning to drop as the days go by.

Yet what’s going on behind the scenes is even more problematic.

What’s taking so long: As we’ve been warning for a while, hardline Republicans may attempt to strip the gavel from Johnson if he tries to pass Ukraine aid. Reps. Thomas Massie (R-Ky.) and Marjorie Taylor Greene (R-Ga.) have now both said they want Johnson to resign or they’ll seek to remove him from the job. Other hardliners are grumbling about the speaker but haven’t signed onto a motion to vacate yet.

When Johnson first floated his plan for a GOP foreign aid bill on Monday, the Louisiana Republican’s aides understood that they’d need votes from Democrats to get it across the finish line. Republican leaders presented Johnson’s decision as the responsible move to get much-needed funding to embattled U.S. allies at a critical moment.

The theory of the case in both parties’ leadership was that Johnson would be able to remain speaker after Republicans and Democrats joined together to table a motion to vacate. It’s not terribly sustainable politically, but GOP leadership aides appeared comfortable with the odd arrangement.

Yet Johnson now finds himself slipping into an old habit that infuriates his leadership colleagues and senior Republicans. He’s taking meetings with all comers in the GOP conference, mulling different pathways to change his proposed plan in order to mollify the hardliners. To some inside the Republican leadership, Johnson started with a solid offer and now is undermining his own position by negotiating with conservatives who’ll never vote for the proposal no matter what’s in it.

The House Freedom Caucus has floated adding H.R. 2, the hardline GOP border security bill, to the aid package. They also want Israel or Ukraine funding offset with spending cuts or some other budgetary gimmicks. Rep. Jim Jordan (R-Ohio) has told lawmakers that Johnson should simply put a clean Israel bill on the House floor — no Ukraine funding — and send it to the Senate.

Of course, none of this will work. Democratic leaders and the White House won’t support it, making it very unlikely Johnson can pass a rule or the bill. If a Republican is pressing to add H.R. 2 to the measure, they’re trying to kill it.

The question for Johnson is whether he’ll mirror his strategy from the government funding fight. In that squabble, he listened to hardliners about cutting spending and then reverted to the obvious solution of relying on a bipartisan coalition to pass the bills. Or will Johnson cave here in order to save his speakership?

Top Democrats want Johnson to release the bill, not worry about the 72-hour rule and move as quickly as possible to a floor vote.

Johnson is also getting renewed pledges of support from more centrist and moderate members in his own party. Reps. Tom Cole (R-Okla.), Michael McCaul (R-Texas), Mike Rogers (R-Ala.) and Mike Turner (R-Ohio) — who chair the Appropriations, Foreign Affairs, Armed Services and Intelligence panels respectively — joined with other senior GOP lawmakers in publicly urging Johnson to “pass the full national security supplemental.”

“We don’t have time to spare when it comes to our national security. We need to pass this aid package this week,” the lawmakers said in a statement.

There’s one other option worth watching — some Republicans, including conservatives, have told House GOP leaders that they should cut GOP members loose to join with Democrats in a discharge petition to force the $95 billion Senate foreign aid package to the floor.

This is another risky move since Johnson would be ceding control of the floor to Democrats, at least on this vote. But it would also allow Johnson to say the majority of the House is working his will even if he personally is opposed to Ukraine funding.

But it would also give some conservative Republicans what they really want — a chance to fight it out internally with moderates, even if that lands the House GOP in the minority. To some of these hardliners, they’d rather be pure than govern.

— Jake Sherman and John Bresnahan

APRIL EVENTS! Tomorrow: Rep. John Joyce (R-Pa.) joins Punchbowl News Managing Editor Heather Caygle for an interview on the news of the day and how 5G supports America’s global competitiveness. RSVP here to join the conversation at 9 a.m. ET.

THE SENATE

Senate GOP divisions scuttle possible deal on Mayorkas impeachment trial

Senators were unable to strike a deal Tuesday outlining the impeachment trial of Homeland Security Secretary Alejandro Mayorkas, setting up potentially raucous proceedings Wednesday ahead of a likely vote to dismiss the charges.

We scooped Tuesday night that there were several GOP objections to a time agreement that would have allowed 90 minutes of debate ahead of votes on two Republican motions — one to establish a full trial, and another to create a trial committee. The deal would have then allowed Senate Majority Leader Chuck Schumer to move to dismiss both impeachment articles.

What’s next: The rejection of any time agreement sets the stage for a likely conservative revolt on the Senate floor.

Republicans can — and are expected to — make points of order or parliamentary inquiries directed at Sen. Patty Murray (D-Wash.), who as president pro tempore will be in charge of the floor. The expectation is that Murray would eventually deem those dilatory and recognize Schumer to offer a motion to dismiss the charges.

GOP hardliners argued that hammering out a deal with Democrats — even one that gives Republicans time to make their case — essentially helps Schumer dispose of the impeachment articles more efficiently.

“I don’t think we should be negotiating with the arsonists here,” Sen. Eric Schmitt (R-Mo.) told us. “If Chuck Schumer wants to blow up impeachment trials forever, he ought to own that.”

Schmitt was among those who objected to the agreement, which was “hotlined” to Senate offices late Tuesday afternoon. Other conservatives noted that adding time for debate on the front end wouldn’t change the final result, which they believe will be a successful vote to scrap the trial.

“The outcome is the same either way,” Sen. Josh Hawley (R-Mo.) added. “If we do a bunch of talky-talk and then we vote to table or dismiss, it’s the same thing functionally.”

It remains unclear, however, whether Democrats will be united on the dismissal motions. If they vote in unison, they can end the trial without GOP help. If there’s even one Democratic defection, they’ll need at least one Republican to vote with them.

Sen. Jon Tester (D-Mont.), who’s up for reelection this year in a red state, will be among those to watch. So will Sen. Kyrsten Sinema (I-Ariz.), who never telegraphs her votes ahead of time.

GOP divisions: Some Republicans argued during their closed-door lunch on Tuesday that their conference should accept this type of arrangement because, if Democrats have the votes to bypass the trial anyway, Republicans would at least be able to make their case before that happens. This would also give the GOP a forum to bash Mayorkas and, by extension, President Joe Biden, over their handling of the border.

“For those of us who would like to have some kind of discussion or debate, [this] offers us an opportunity,” Sen. Thom Tillis (R-N.C.) said.

Republicans have argued that dismissing or tabling the issue before a trial is even held would set a dangerous precedent allowing future Senates to simply bypass the trial process if the House is controlled by the other party.

Democrats, however, say the impeachment articles don’t actually allege a high crime or misdemeanor and are borne simply out of a policy disagreement with the executive branch.

— Andrew Desiderio

Senate stablecoin bill drops as Warren pushes for Treasury AML boost

News: Sens. Kirsten Gillibrand (D-N.Y.) and Cynthia Lummis (R-Wyo.) published the text of their much-anticipated stablecoin legislation this morning. It’s a move designed in part to nudge along separate negotiations in the House.

The bill, formally dubbed the Lummis-Gillibrand Payment Stablecoin Act, would introduce a broad set of safeguards to a type of digital asset that’s generally used to facilitate other crypto transactions. Read the bill text here.

There’s a lot to unpack in this approach, which is distinct from a 2023 effort from Gillibrand and Lummis designed to address the crypto sector more broadly. This stablecoin bill would:

In statements, Gillibrand and Lummis said their bill would preserve the dual banking system by allowing for a mix of both state and federal oversight.

Lummis said the bipartisan bill was “critical to maintaining the U.S. dollar’s dominance” and facilitating financial innovation.

Gillibrand argued the bill ”protects consumers by mandating one-to-one reserves, prohibiting algorithmic stablecoins, and requiring stablecoin issuers to comply with U.S. anti-money laundering and sanctions rules.”

This bill is complicated and weighty, and it will take time for Washington and Wall Street to fully digest. We’ll be following the reaction closely.

Speaking of crypto: One of the industry’s fiercest critics in the Senate has more shots to fire at congressional efforts to better fold crypto into the financial system.

First in Punchbowl News: Sen. Elizabeth Warren (D-Mass.) told the Treasury Department in a letter Tuesday she would back a push to give financial regulators stronger anti-money laundering authorities over crypto. Warren said such tools “must be adopted into any legislation Congress advances” on stablecoins.

Warren points to a Treasury letter from November 2023 in which the government asked for additional authorities to help crack down on criminal activity in and around the crypto sector, including around crypto miners and validators.

More from Warren:

— Brendan Pedersen

DISCLOSURE DISCOURSE

The Senate’s challenge to the SEC climate rule

First in Punchbowl News: Senators led by Sen. Tim Scott (R-S.C.) will introduce a Congressional Review Act challenge today to the Securities and Exchange Commission’s climate disclosure rule.

Two things of note: Support for this measure from Sen. Joe Manchin (D-W.Va.) makes it bipartisan. And with more than 34 co-sponsors altogether, the resolution has enough support to be brought to the floor without a committee vote.

Otherwise, Senate Banking Committee Chair Sherrod Brown (D-Ohio) and his Democratic majority would almost certainly be able to block the measure.

In a statement, Scott said the SEC’s climate disclosure rule — which has already been frozen by the agency in the face of significant legal opposition — “is federal overreach at its worst, and the SEC should stay in its lane.”

Republican supporters for this CRA include every GOP member of the Senate Banking Committee as well as Minority Leader Mitch McConnell, Sens. Chuck Grassley (Iowa), John Cornyn (Texas), John Thune (S.D.), John Barrasso (Wyo.), Jim Risch (Idaho), Jerry Moran (Kan.), John Boozman (Ark.), Marco Rubio (Fla.), Ron Johnson (Wis.), Deb Fischer (Neb.), Bill Cassidy (La.) and more.

— Brendan Pedersen

… AND THERE’S MORE

News: The House Administration Committee is releasing an interim report on the initial adoption of artificial intelligence in the House. A notable takeaway: This month, the Administration committee approved the usage of ChatGPT Plus for some committee staff.

Check out the full report here.

The Campaign: Winning for Women Action Fund has a new ad in support of Rep. Nancy Mace’s (R-S.C.) primary opponent, Catherine Templeton. WFW supported Mace in her last race.

Fundraising: Sen. Katie Britt (R-Ala.) topped freshmen GOP senators in Q1 fundraising, raking in nearly $600,000. Britt has almost $3 million cash on hand.

Of course, freshmen senators who were elected to a full six-year term last cycle aren’t up for reelection until 2028. But Britt may have leadership aspirations, so these kinds of fundraising numbers are positive signs for her.

Coming in second among first-term Senate Republicans was Sen. Pete Ricketts (R-Neb.), who’s in-cycle this year because he was appointed to his Senate seat. Ricketts raised $325,000 and has $2.1 million cash on hand.

Downtown Download: Former Senate Majority Leader Tom Daschle (D-S.D.) has signed up to lobby for Embraer, the aircraft company.

— Max Cohen, Jake Sherman and Andrew Desiderio

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