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May 19, 2023
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THE TOP
Happy Friday morning.
We have a bunch of news to catch you up on.
Debt limit: The Biden administration is aiming for a debt-hike extension into 2025 during talks with House GOP negotiators, according to multiple sources involved in the discussions.
Remember: House Republicans’ Limit, Save, Grow Act only lifted the debt limit through March 2024 — a roughly $1.5 trillion hike — while generating savings of nearly $5 trillion. Republican negotiators will seek major policy concessions and/or spending cuts in return for a debt hike that runs through the presidential election.
That said, it’s in everyone’s interest to avoid another debt-limit fight this Congress. But nothing is ever easy.
Also: Negotiations are moving slowly and quite deliberately, sources tell us. A White House official said “steady progress is being made.” It’s still possible the two sides reach a deal by Sunday or Monday, but legislative text is unlikely to be ready by then.
Some news on stock trading: A bipartisan group of senators is teaming up to make another run at banning lawmakers from owning and trading individual stocks while in office.
Sens. Elizabeth Warren (D-Mass.), Josh Hawley (R-Mo.), Raphael Warnock (D-Ga.) and Lindsey Graham (R-S.C.) are piecing together a coalition of senators based largely on Warren’s proposal from last year with Sen. Steve Daines (R-Mont.).
You’ll recall that there was a lot of bipartisan interest in this issue during the previous Congress, and several freshman lawmakers made this a key 2022 campaign plank. It’s also a topic that transcends partisanship, as you can clearly see by the odd-couple group here. And there’s broad public support as well.
“It’s important that we ensure that lawmakers are focused on the people they’re sent here to represent, and that that’s not in conflict with their financial interests,” Warnock told us.
There’s a House companion to the Warren-Daines bill from Reps. Pramila Jayapal (D-Wash.) and Matt Rosendale (R-Mont.). There’s also a similar but less stringent proposal from Reps. Abigail Spanberger (D-Va.) and Chip Roy (R-Texas).
Hawley told us he wants the Senate product to be as strict as possible in order to prevent even the appearance of financial conflicts of interest.
“This is an issue that’s got energy… I hope we’ll get something bipartisan that is really tough, and I think there’s a good chance for that,” Hawley said. “If you get a good, robust, bipartisan bill, I think it’d be hard to say no to bringing that to the floor and voting on it.”
Remember: The discussion last Congress centered around legislation that forced lawmakers to put their assets in a blind trust and banned them from trading stocks.
That this group of lawmakers is involved gives this push new heft.
Biden’s nomination troubles: It’s been a very rough stretch for some of President Joe Biden’s high-profile nominees for both executive-branch positions and the federal bench.
Just this year, disunity among Senate Democrats and solid GOP opposition resulted in Gigi Sohn withdrawing from consideration for the FCC. And Phil Washington bowed out before the Commerce Committee could even consider his nomination to become FAA administrator.
On Thursday, it was Michael Delaney, Biden’s pick for the First Circuit Court of Appeals. Delaney withdrew from consideration after failing to win support to advance out of the Judiciary Committee. It’s been clear that Delaney’s nomination was in deep trouble for weeks. Progressives took issue with his record on abortion and legal work for a prep school in a sexual-assault case. Republicans were firmly opposed as well.
With a 51-49 Senate, it was supposed to be slightly easier for Democrats to confirm Biden’s nominees, especially if Sen. Joe Manchin (D-W.Va.) were to break from the party, as he often does. But the latest nomination troubles for the White House have extended well beyond Manchin.
It wasn’t immediately clear who on the Judiciary Committee was prepared to vote against Delaney. The nomination was kept on the panel’s backburner while Sen. Dianne Feinstein (D-Calif.) was absent.
“We diligently consider any concerns or controversies that are raised about nominees. I think all of us take that responsibility seriously,” said Sen. Jon Ossoff (D-Ga.), a Judiciary Committee member. “There are always issues [with nominees] that merit discussion.”
Senate Democrats with whom we spoke after Delaney withdrew declined to say whether there was a systemic problem with the White House’s nomination process, given the failures of Sohn, Washington and now Delaney.
“After today, I’m looking forward to talking to the White House counsel about the path forward,” said an exasperated Sen. Chris Coons (D-Del.), a Biden ally who was prepared to vote for Delaney. Coons declined to comment further.
Plus, there’s another high-profile nominee who’s hanging by a thread — Julie Su, Biden’s pick for Labor secretary.
Sens. Jon Tester (D-Mont.), Kyrsten Sinema (I-Ariz.) and Manchin are all undecided on Su, and Majority Leader Chuck Schumer has yet to file cloture on the nomination.
“I don’t know what their thinking is right now,” Sen. Mazie Hirono (D-Hawaii) said of the White House. “They’re very busy trying to make sure we don’t default. I think that’s the first priority at this point.”
— Andrew Desiderio and Jake Sherman
TO OUTER SPACE
Abortion at center of Alabama vs. Colorado battle for Space Command HQ
Sen. Tommy Tuberville’s (R-Ala.) blockade of military promotions over the Pentagon’s abortion policy is causing a ripple effect beyond the E-Ring.
The abortion issue — and Tuberville’s decision to use routine military promotions as leverage to get the Pentagon to rescind its abortion policy — may now be bleeding into the bitter fight between lawmakers from Alabama and Colorado over where to house U.S. Space Command.
The Trump administration decided to move Space Command’s headquarters from its temporary home in Colorado Springs to a permanent facility in Huntsville, Ala. NBC reported this week that the Biden administration could reverse course on that Trump-era decision due in part to Alabama’s restrictive abortion law. The White House asked the Air Force last year to review that basing decision.
The delay has led some to accuse the administration of injecting politics into the issue and potentially using the basing decision to try to convince Tuberville to back off of his nomination holds.
The lone Democrat in Alabama’s congressional delegation is pleading with Tuberville to back off his “reckless” position and says his blockade is jeopardizing Huntsville’s rightful claim to Space Command’s headquarters.
“Huntsville won this location bid fair and square,” Rep. Terri Sewell (D-Ala.) told us. “It saddens me that my senator is holding hostage these military promotions. I hope that that won’t affect — but I’m afraid it will affect — the decision.”
The entire Alabama delegation is seeking a meeting with Air Force Secretary Frank Kendall as they grow worried about the delay and what it means for the Space Command headquarters.
Sen. Katie Britt (R-Ala.) wouldn’t go as far as to say the Pentagon is using the basing decision to get Tuberville to back off of his military holds. But she gave tacit support for Tuberville’s actions, even as other top Republicans cried foul at the tactic.
“That funding [for the abortion policy] should be going to resource our incredible men and women that wear the uniform, not for some radical left-wing policy,” Britt told us, adding that the Pentagon shouldn’t allow “partisan politics” to impact the Space Command decision.
Tuberville, for his part, told us he doesn’t get the impression that the Pentagon is connecting the Space Command basing decision to his blockade of military promotions. Colorado’s senators also said they weren’t connected.
But Sen. Michael Bennet (D-Colo.) uniquely finds himself right in the middle of both issues. Bennet was the first senator to challenge Tuberville over his military holds on the Senate floor, and he has done so half a dozen times already. At the same time, Bennet is pushing the Pentagon to keep the Space Command headquarters at what he says is a fully operational facility in Colorado Springs.
Bennet said there is “no national security reason” to move the facility. Here’s what he told us about how abortion politics factor in:
As we’ve written, there isn’t yet a mutually acceptable off-ramp for Tuberville’s blockade of military promotions.
— Andrew Desiderio and Heather Caygle
IMPEACHMENT WATCH
Vulnerable Rs eye opportunity with Mayorkas impeachment
We’ve reported extensively on the politically perilous votes moderate Republicans have taken this year. But several vulnerable Republicans we spoke to think that impeaching Homeland Security Secretary Alejandro Mayorkas won’t be one of them.
As the House inches toward launching impeachment proceedings against Mayorkas, an increasing number of swing-district Republicans are leaning into the issue.
Mayorkas has emerged as the House GOP’s favored punching bag during 2023. Hardline and centrist Republicans alike blame Mayorkas for an influx of illegal migrant crossings. They also accuse Mayorkas of failing to prepare properly for the expiration of Title 42, the pandemic era policy that allowed the United State to quickly turn away millions of migrants over public health concerns. That policy expired last week.
The renewed push for Mayorkas’ removal comes after House Republicans passed a bill to restrict asylum and beef up border security. And beyond more partisan impeachment pushes aimed at President Joe Biden and Attorney General Merrick Garland, Republicans claim the case for impeaching Mayorkas comes down to his alleged failures on the job.
Rep. Mike Garcia (R-Calif.) told us he supports impeaching Mayorkas and argued the secretary is “going out of his way to allow this invasion on our southern border.”
“When the Joker is acting like the Joker, it’s one thing,” Garcia said. “But when Batman — who’s supposed to be protecting you — starts acting like the Joker, you’ve got to do something about it.”
Rep. Anthony D’Esposito (R-N.Y.) criticized Mayorkas, though he didn’t directly back the impeachment effort.
“Secretary Mayorkas is not fulfilling his oath that he took to protect this homeland and protect this nation,” D’Esposito told us.
Garcia and D’Esposito both represent districts that Biden carried in 2020. And Democratic groups are already targeting vulnerable GOP incumbents, accusing them of taking extreme stances on everything from veterans funding to abortion rights. A potential Mayorkas impeachment would serve as more campaign fodder.
But Rep. Nancy Mace (R-S.C.) — a center-right Republican who flipped her seat red — said impeaching Mayorkas will be a political boon to endangered members.
“Illegal immigration is an American problem. It doesn’t matter if you have an ‘R’ or a ‘D’ or an ‘I’ by your name,” said Mace, who supports impeachment.
Rep. Pat Fallon (R-Texas), who filed impeachment articles against Mayorkas in January, told us he hasn’t heard any concerns from colleagues in Biden-leaning districts.
“The middle understands the disaster at the border,” Fallon said. “It’ll help purple districts because it’s more of a 70-30 issue, where only the hard left are the ones who want to keep things as they are.”
Another swing-seat Republican considering impeachment is Rep. John Duarte (R-Calif.). Duarte was one of two Republicans who voted against the GOP’s border bill.
“[Mayorkas’] failures are obvious,” Duarte said. “At some point, if we believe there is a case there, I’ll probably stick with the party.”
Top Republicans have also come around to a possible impeachment effort against Mayorkas.
In October 2022, then-House Minority Leader Kevin McCarthy told us he didn’t think anyone in the Biden administration deserved impeachment. But after the election, McCarthy changed his tune and urged Mayorkas to resign or face possible impeachment.
McCarthy refused to explicitly back impeaching Mayorkas when asked by reporters this week. House Majority Whip Tom Emmer threw his weight behind impeachment last week.
Not all Republicans are on board, however. Rep. Don Bacon (R-Neb.) told us he opposes impeaching Mayorkas and instead blames Biden for the border situation.
“[Mayorkas] deserves criticism,” Bacon said. “But I don’t think Mayorkas is the problem. The president is.”
Whether they seek to Impeach him or not, Republicans are moving ahead with targeting Mayorkas during the appropriations process. The House Appropriations Committee marked up an FY2024 spending bill this week that would cut funding for Mayorkas’ office by $4 million.
— Max Cohen and Mica Soellner
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The Coca-Cola Company, Keurig Dr Pepper and PepsiCo are offering more choices with less sugar. Today, nearly 60% of beverages sold have zero sugar. BalanceUS.org
THE TOWNHOUSE BREAKFAST
On Thursday, we hosted leaders from across D.C. at The Townhouse for a breakfast in partnership with Alibaba. Attendees heard from Punchbowl News Founder and CEO Anna Palmer and Alibaba’s Head of International Government Relations for the Americas Bill Anaya.
Joining us were Keenan Austin Reed of the Alpine Group; Cristina Antelo of Ferox Strategies; Eric Einhorn of Sen. Brian Schatz’s (D-Hawaii) office; Jerome Siangco of The National Bureau of Asian Research; Shawn Whyte of Walmart; Aleeke Spence of Adobe; Bob Jones of Greenberg Traurig; Christin Baker of SoftBank; Eric Pelletier, Paul Nagle, and Sydney Stone of Alibaba; and Gloria Dittus and Rachael Parry of Story Partners.
THE CAMPAIGN
News: The NRCC raised $12.4 million during the “Majority Dinner” held Thursday evening in Tampa, Fla. Speaker Kevin McCarthy headlined the event, which featured 41 members of Congress and more than 500 total attendees.
Ad watch: Democratic outside groups are beginning to hammer vulnerable Republicans on their debt-limit stance. One ad running in New York dings GOP Reps. Marc Molinaro and Brandon Williams “for pushing America into default.”
Another spot in Nebraska from the League of Conservation Voters hits Rep. Don Bacon (R-Neb.) for supporting the Limit, Save, Grow Act. The spot says the legislation would harm clean energy jobs and lead to lay-offs for firefighters and teachers.
The DCCC is getting in on the act as well. The House Democratic campaign arm launched a new site — gopvotedtodefault.com — that declares “31 vulnerable Republicans sided with extremists to hold our economy hostage in order to enact cruel cuts to programs that keep Americans healthy, safe, and secure.”
— Max Cohen
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