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 Friday morning.
President Joe Biden has landed in South Korea.
The federal government has spent trillions of dollars responding to the Covid-19 pandemic. But now, the congressional money spigot looks to be running dry.
Senate Republicans blocked any action Thursday on a $48 billion bipartisan package to help restaurants, small business, gyms and music venues still impacted by the pandemic. Only five Senate Republicans agreed to move forward with debate on the package, despite the lead Democrat on the bill – Sen. Ben Cardin of Maryland – offering to slash the cost of the legislation by as much as half.
This came just hours after the Senate cleared a $40 billion Ukraine aid package on an emergency basis, so money isn’t the issue here. It’s what the White House and Democratic leaders want to spend it on.
Senate Republicans have opposed a multi-billion dollar Covid preparatory funding package for more than three months, despite pleas from President Joe Biden and top administration health officials that the funding is needed desperately to replenish federal stockpiles of tests, therapeutics and vaccines.
Even as the number of Covid infections has soared nationally thanks to Omicron variants, Republicans have insisted that any new Covid package be fully offset.
Republicans also want a vote authorizing the continued use of Title 42 public health authority to expel migrants at the U.S.-Mexico border. The CDC will end the use of that authority on Monday, despite complaints from GOP leaders and moderate Democrats that doing so will lead to a huge new surge in migrants.
For Republicans, the Democrats’ decision to jam through the $1.9 trillion American Rescue Plan in 2021 helped set off a huge spike in inflationary pressure, leading to price hikes for food and fuel at levels not seen in four decades. Sen. Joe Manchin (D-W.Va.), of course, has sided with them, which is why Biden’s Build Back Better effort failed.
Republicans look at state governments teeming with tens of billions of dollars in surpluses as another reason to scale back federal relief efforts.
“I’m concerned about the deficit. We’ve spent a lot of money,” said NRSC Chair Rick Scott (Fla.) – one of the Senate’s loudest voices on the dangers of inflation – following Thursday’s failed cloture vote on replenishing the Restaurant Revitalization Fund, which has already doled out nearly $29 billion since the pandemic began.
“I’m clearly interested in some very targeted help for people,” Scott added. “Our states have a lot of money.”
Faced with this overwhelming GOP intransigence, Democrats on both sides of the Capitol are skeptical that another round of Covid relief will ever reach Biden’s desk. Democrats aren’t sure they’ll be able to pass either the $10 billion that Senate Republicans have previously agreed to – fully offset, of course – or the $22.5 billion that Speaker Nancy Pelosi has sought for Covid prep.
Some Democrats blame Pelosi for pulling the Covid prep funding from the $1.5 trillion omnibus back in February. The reality, though, was that Pelosi couldn’t pass the omnibus with the Covid money included, as some of her Democrats revolted at how the funding was offset.
Democrats, though, now lack a must-pass vehicle to attach the Covid prep funding. That helps explain why Pelosi and Senate Majority Leader Chuck Schumer haven’t been able to get it through Congress, despite pleas from the White House.
Senate Democratic leadership wants the House to pass any Covid bill first. Senior House Democrats, though, are hearing from their most vulnerable rank-and-file that they won’t vote for a Covid relief bill unless it includes a reinstatement of Title 42.
But that would trigger a huge ideological fight among House Democrats, the majority of whom oppose the use of Title 42 to reject migrant asylum claims, a process that began during the Trump administration.
The Congressional Progressive Caucus said in a statement Thursday that they’ll never vote for any bill to reinstate Title 42.
“The Progressive Caucus is proud to stand in solidarity with our colleagues in the Congressional Hispanic Caucus, who have indicated they will oppose any amendments to the COVID-19 relief package and any standalone legislation that would attempt to reinstate Title 42 policy. As the leadership of the CPC, we commit to doing the same: we will oppose any amendments that would undermine President Biden’s effort to end Title 42 and follow immigration law.”
Here’s where the rubber meets the road: There’s practically no chance the Senate will pass a Covid bill that doesn’t include reinstating Title 42. Every Senate Republican will vote for it, as will a wide swath of Senate Democrats. And House Democratic leaders won’t risk it either. A federal judge is slated to decide in the coming days on whether to block Title 42 – this could have legislative consequences.
More than two years into the pandemic, Congress is as tired of Covid as the rest of the country is. There will still be billions of dollars – probably tens of billions of dollars – spent to deal with the long-term impact of the disease. But the likelihood of any big new Covid package being passed – minus a new wave this fall – is low, at least before the November midterm elections.
– John Bresnahan and Jake Sherman
PRESENTED BY PHRMA
Did you know that only three insurance company pharmacy benefit managers (PBMs) control 80% of patients’ medicines? They decide what medicines are covered, what medicines aren’t and what you pay for them, regardless of what your doctor prescribed. Meanwhile, they get tens of billions in rebates and discounts meant for you. PBMs are putting their profits before your medicine. Tell Congress savings belong to patients.
EMPIRE STATE UPDATE
N.Y. congressional maps expected to be finalized today
A special master tasked with redrawing New York’s congressional and state Senate maps is scheduled to present the final maps to a state court judge today.
A draft released by Jonathan Cervas earlier this week set off a political firestorm in New York and Washington. Following the 2020 census, Democrats hoped to add several new House members to their ranks, despite the fact that New York overall was losing one seat.
Instead, under Cervas’ proposed map, Democrats would likely lose at least one to two seats, while other districts become even more competitive. DCCC Chair Sean Patrick Maloney has found himself in the midst of a huge controversy, as he currently plans to run in a district held by first-term Rep. Mondaire Jones, which has infuriated Frontliners and others. Reps. Jerry Nadler and Carolyn Maloney would face-off in an unprecedented campaign between two full House committee chairs, while House Democratic Caucus Chair Hakeem Jeffries is complaining that the map would hurt Black voters. Jeffries is dumping tens of thousands of dollars into an ad campaign against them.
Here’s Jeffries in the New York Times:
As construed, the map would split Bedford-Stuyvesant in central Brooklyn into two districts and Co-Op City in the Bronx into three, for example, while placing Black incumbents in the same districts — changes that Mr. Jeffries argues violate the State Constitution.
“We find ourselves in an all-hands-on-deck moment,” Mr. Jeffries, a Brooklyn Democrat, said in an interview on Thursday. In the most recent ad, he says the changes took “a sledgehammer to Black districts. It’s enough to make Jim Crow blush.”
The party primaries have been set for Aug. 23 by Acting State Supreme Court Judge Patrick F. McAllister in Steuben County. McAllister struck down the proposed maps in late March, saying Democrats went too far in gerrymandering congressional districts in their favor.
There’ve been an enormous number of comments already filed on the draft maps from Cervas, a postdoctoral fellow from Carnegie Mellon University assigned by McAllister to redraw the maps. And legal action seems certain, with minority groups particularly incensed by the proposal. Local and county officials throughout the Empire State are also complaining.
We’ll stay on top of this all day.
– John Bresnahan
WHAT THEY’RE PUSHING FOR
House Democrats push Schumer on prescription drugs, insulin
Pennsylvania Rep. Susan Wild is leading a letter from 20 embattled House Democrats urging Senate Majority Leader Chuck Schumer and Finance Committee Chair Ron Wyden to pass a reconciliation bill that would provide “meaningful relief to those who rely on life-saving prescription drugs.”
Here’s a bite from the letter:
“That bill should include the deficit-reducing reforms passed by the House last fall specifically: limiting the cost of insulin at $35 per month, capping out of pocket costs for seniors in Medicare Part D at $2,000 per year, penalizing drug corporations that raise prices faster than the rate of inflation, and, critically, granting Medicare the authority to negotiate the prices of certain drugs. These provisions not only have widespread support among our constituents, but they also have been publicly endorsed by all fifty Democratic members of the U.S. Senate.
“We represent the most competitive districts in Congress. Just like you, we were sent to Washington on the promise that we’d tackle big issues and work to improve the lives of those we represent. And what issue do we hear about at every town hall? At every event? The price of prescription drugs.
“Our constituents are struggling. Gas and grocery prices are up. Inflation concerns are real. Let’s ease those concerns by making life-saving prescriptions more affordable, for everyone. This is even more urgent given that we’ve already seen drug prices increase earlier this year and likely will rise again as part of Big Pharma’s tradition of hiking prices twice per year in both January and July.
“We’ve promised to take on Big Pharma’s price gouging for years. Let’s make good on this promise. We have the votes and, more importantly, we have the backing of the American people – Democrats, Republicans, and independents.”
A few observations from this letter: No. 1, the group is making the explicit argument that all 50 Senate Democrats agree on this – meaning Schumer should move on this ASAP. Plus, these House Democrats say that they are from the most competitive districts in America – another plain nod to the political dynamics here. Frontliners have been complaining of late that the Democratic leadership in the House is not giving them enough politically salient bills to vote on. Here’s one.
– Jake Sherman and Heather Caygle
PRESENTED BY PHRMA
Insurance companies and their PBMs threaten patients’ access to medications to make a profit. Tell Congress those savings belong to patients.
MORE FROM PUNCHBOWL NEWS
Did you miss a newsletter this week? Catch up on all of our past editions in our new searchable archive before the weekend.
THE CAMPAIGN
→ | First in Punchbowl News: NRSC Chair Sen. Rick Scott (R-Fla.) is visiting New Hampshire today for a fundraising dinner — and the DSCC is greeting the appearance with a billboard slamming Republicans for opposing abortion rights. |
The billboard, which is going up in downtown Manchester, features Scott and Senate Minority Leader Mitch McConnell along with the three main contenders to take on Sen. Maggie Hassan (D-N.H.) in November: New Hampshire Senate President Chuck Morse, retired Gen. Don Bolduc and state Rep. Kevin Smith.
Hassan has been notably outspoken on the need to protect abortion rights since the draft Supreme Court decision oveturing Roe v. Wade leaked earlier this month. Democrats see the debate over abortion rights as a winning issue in New Hampshire.
— Max Cohen
FRONTS
PRESENTED BY PHRMA
Tell Congress savings belong to patients—not insurers’ PBMs.
MOMENTS
All times eastern
6:15 a.m.: President Joe Biden and South Korean President Yoon Suk Yeol will speak at the Samsung Electronics Pyeongtaek Campus, which is a model for a plant being built in Taylor, Texas. Biden will make the case “for quickly passing the Bipartisan Innovation Act, which will deliver historic federal investments in U.S. research and development, supply chains, and domestic manufacturing.”
7:20 a.m.: Biden will leave Pyeongtaek for Seoul.
7:40 a.m.: Biden will arrive in Seoul.
CLIP FILE
NYT
→ | “Key Witness in Durham Case Offers Detailed Testimony of 2016 Meeting,” by Katie Benner |
→ | “Biden Begins Trip to Asia Meant to Reassure Allies of Focus on China,” by Peter Baker and Zolan Kanno-Youngs in Seoul |
→ | “Big Questions Remain About White House Plan to Speed Formula to Shelves,” by Michael D. Shear, Christina Jewett and Ana Swanson |
WSJ
→ | “U.S. Stock Futures Jump on China Rate Cut,” by Anna Hirtenstein |
Politico
→ | “Trump’s bid to control election offices hits first battleground,” by Zach Montellaro |
Houston Chronicle
→ | “Sen. John Cornyn, a former Texas AG himself, calls Ken Paxton’s legal woes an embarrassment,” by Taylor Goldenstein |
PRESENTED BY PHRMA
This may come as a shock, but did you know that only three insurance companies and their pharmacy benefit managers (PBMs) control 80% of patients’ medicines? They sure act like it. They use their market power to get tens of billions in rebates and discounts on medicines – rebates and discounts that should be going to patients. They decide what medicines are covered, what medicines aren’t and what you pay for them. Regardless of what your doctor prescribed. That’s too much control, and it leaves you fighting them for your medications, instead of fighting your illness. PBMs are putting their profits before your medicine. It’s time we do better than that for patients. Tell Congress those savings belong to patients.
Editorial photos provided by Getty Images
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.