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PRESENTED BY
THE TOP
Spending fights reach House floor as Biden-Trump debate looms
Happy Monday morning.
The House returns on Tuesday, the Senate is out until July 8.
Thursday’s CNN-hosted debate between President Joe Biden and former President Donald Trump will dominate the headlines this week. It’s the first of two head-to-head meetings between the candidates.
We’re going to focus on two issues this morning — FY2025 spending bills and data privacy.
House GOP leaders have set an ambitious timetable for passing their version of the FY2025 spending bills. They want all 12 annual bills out of the Appropriations Committee by mid-July, and through the House by the start of the August recess. Three bills are scheduled to be marked up Tuesday in the Rules Committee — Defense, Homeland Security and State-Foreign Operations — with floor votes later this week. GOP leaders predict all three will pass.
The Defense bill includes a $9 billion boost from last year, while the Homeland Security package is almost $3 billion higher.
But State-Foreign Operations — SFOPS — gets a huge cut, down 11% from FY2024. This is because Speaker Mike Johnson and House Appropriations Committee Chair Tom Cole (R-Okla.) won’t honor the “side deals” hashed out between Biden and former Speaker Kevin McCarthy last year in conjunction with the Fiscal Responsibility Act. Those side deals included billions of dollars to smooth the annual appropriations process.
Instead, House Republicans have chosen to slash money from non-defense domestic spending while bumping up the Pentagon, Homeland Security and veterans’ programs, a move that Democrats and the White House strongly oppose.
We’ll see this dynamic also play out this week during subcommittee markups inside the Appropriations panel for the Labor-HHS, Transportation-HUD, Interior, Energy and Water and Commerce-Justice-Science bills. More on the CJS bill and Trump below.
Cole and House GOP leaders also allowed Republican members to include “culture war” provisions on immigration, climate change, DEI, abortion and LGBTQ-related riders in the spending bills.
For instance, the Homeland Security bill includes $600 million for the construction of Trump’s border wall while cutting funding for nonprofits that aid undocumented migrants. The Republican-drafted Defense bill includes riders on everything from climate change to critical race theory to drag queens.
Again, none of these House GOP bills will pass muster with the Democratically-controlled Senate or White House.
But Johnson, Cole and Republican leaders know this debate will sputter into the lame-duck session post-Election Day, so they’re looking to score some political points now and worry about funding the government later.
There are also more than 800 amendments filed so far with the Rules Committee for the Defense, Homeland Security and SFOPS bills. Along with the expected “culture war” and Ukraine provisions, there are three separate amendments to cut the salaries of Defense Secretary Lloyd Austin, Secretary of State Antony Blinken and Homeland Security Secretary Alejandro Mayorkas to $1. This, of course, will never happen.
Now let’s go back to the Commerce-Justice-Science bill. Johnson has promised that he’ll “rein in the abuses of Special Counsel Jack Smith” using the annual Justice Department funding bill, something that House Judiciary Committee Chair Jim Jordan (R-Ohio), Rep. Marjorie Taylor Greene (R-Ga.) and other Trump allies have called for repeatedly. Smith is leading the federal criminal cases against Trump in Washington and Florida.
Coincidentally, Trump’s lawyers will argue today before District Court Judge Aileen Cannon in Florida that “the funding of Smith’s position is unconstitutional and his case against Trump should therefore be dismissed,” the Washington Post reported.
Other likely targets for House Republicans include Manhattan District Attorney Alvin Bragg and Fulton County, Ga., DA Fani Willis. House Republicans may seek to cut off grants used by those offices or use some other retaliatory mechanism.
Data privacy. The House Energy and Commerce Committee will mark up a major bipartisan data privacy bill on Thursday. Whether the bill ever gets to the House floor remains to be seen.
The American Privacy Rights Act — hammered out in negotiations between Energy and Commerce Committee Chair Cathy McMorris Rodgers (R-Wash.) and Rep. Frank Pallone (D-N.J.) — would create new federal privacy standards. It includes an updated version of COPPA, the Children’s Online Privacy Protection Act. And there’s a “private right of action” that allows individual Americans to sue “covered entities” that use their personal data without consent.
The Heritage Foundation came out in support of the legislation, which helps with conservatives.
However, there’s very strong opposition to this measure inside the House GOP leadership. GOP leaders have concerns about the proposal’s impact on small businesses, as well as the private right of action. We’ll have more on this as the week unfolds.
One more thing: U.S. swimming legends Michael Phelps and Allison Schmitt will testify Tuesday night before the Energy and Commerce Committee’s oversight panel. Phelps is the most decorated Olympian athlete ever, while Schmitt won 10 Olympic medals. There will be a heavy focus on the Chinese swimming team and doping allegations. Schmitt’s opening statement is worth reading.
— John Bresnahan
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PRESENTED BY WALMART
Walmart is helping create more than 750,000 jobs across the country by investing an additional $350 billion in products made, grown or assembled in America. This investment is strengthening local communities and is helping small suppliers like Proud Source Water in Mackay, Idaho. Learn how Walmart is supporting American jobs and local communities.
THE SENATE
Railway safety push enters critical stretch with NTSB report this week
The National Transportation Safety Board is set to release its final report this week on the 2023 train derailment in East Palestine, Ohio, putting new pressure on Congress to act on long-stalled legislation to enhance safety standards.
Senate Democratic leaders took initial steps earlier this month to clear objections to the bipartisan Railway Safety Act, but GOP leaders remain firmly opposed to the measure.
And as we reported at the time, the bill’s lead Republican sponsor, Sen. J.D. Vance (Ohio), tried to get GOP leaders to see whether there was support for the legislation inside their conference but was unsuccessful. That’s in part because Texas Sen. Ted Cruz, the top Republican on the Commerce Committee, opposes it.
While Democrats are largely united, the issue has highlighted the growing divide between traditional business-friendly Republicans and a newer crop of more populist conservatives who are closely aligned with former President Donald Trump.
In addition to Trump and Vance — a potential VP pick — the railway safety bill has support from GOP Sens. Josh Hawley (Mo.), Roger Marshall (Kan.) and Eric Schmitt (Mo.), among others.
The legislation would impose new regulations for trains carrying potentially hazardous materials, while also mandating strict new penalties for violations of the new safety standards. The Norfolk Southern freight train was transporting toxic chemicals when it derailed in East Palestine in February 2023.
The railroad industry sees the newly proposed regulations as overly burdensome and unnecessary. Republican leaders want to be able to amend the bill if it comes to the floor.
“There are some things that need to be fixed. Obviously, there are some provisions in it that are good,” Senate Minority Whip John Thune told us. “And there are some things that were put in there basically as kind of a handout to the unions.”
The politics: Vance has been working alongside Sen. Sherrod Brown (D-Ohio), one of the most vulnerable in-cycle incumbents, to get the bill across the finish line. Doing so would be a major boost for Brown, who faces an uphill battle to win reelection in November.
So this is another reason for Republican leaders — who oppose the bill on its merits anyway — to do whatever it takes to stifle the effort.
Senate Majority Leader Chuck Schumer could seek to hold a vote on the bill anyway in order to highlight GOP intransigence and give Brown a chance to vote for it. But the bill’s sponsors believe they are close to securing 60 votes, so they’re not giving up quite yet.
The release of the NTSB report could help them get there. At the very least, it’s an opportunity to put the issue at the front of senators’ minds as the August recess looms. There are just three in-session weeks remaining until then, and the last two are fairly open-ended in terms of what could be considered on the floor.
In addition to judicial nominees, there are several other long-stalled bipartisan bills that Schumer has been wanting to clear, including on social media, bank executive clawbacks and more.
— Andrew Desiderio
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📆
What we’re watching
Tuesday: The House Rules Committee will meet on three appropriations bills: State-Foreign Operations, Homeland Security and Defense. The House Energy and Commerce Committee will hold a hearing on anti-doping measures ahead of the Olympics.
Colorado, New York and Utah will hold their primaries.
Wednesday: The House Oversight Committee will hold a hearing on defending the United States from the Chinese Communist Party. The House Science, Space and Technology Committee will hold a hearing on the Energy Department’s budget with Deputy Secretary David Turk.
The House Education and the Workforce Committee will hold a hearing on antisemitism in post-secondary education.
Thursday: Transportation Secretary Pete Buttigieg will testify about department policies and the FY2025 budget request. The House Financial Services Committee will hold a hearing on SEC Chairman Gary Gensler’s equity market structure reform.
— Jake Sherman
PRESENTED BY WALMART
Walmart is investing an additional $350B to products made, grown or assembled in America, supporting local businesses like Proud Source Water in Mackay, Idaho.
THE CAMPAIGN
Clark hits the road while Britt helps Cruz
House Minority Whip Katherine Clark is in North Carolina today campaigning for President Joe Biden’s reelection. Clark, the number two House Democrat, is taking part in a news conference on Biden’s record of protecting reproductive rights to mark the second anniversary of the Supreme Court’s overturning of Roe v. Wade.
Clark has crisscrossed the country this year to highlight the importance of abortion rights to voters in key states. This cycle, the Massachusetts Democrat has held 12 events on the issue in Texas, Florida, New York, Illinois, Wisconsin, Arizona and Pennsylvania.
“America is at a crossroads. For the sake of our daughters and granddaughters, we must win the fight for freedom over extremism,” Clark said in a statement.
Across the Capitol: Sen. Katie Britt (R-Ala.) hosted a fundraiser for Sen. Ted Cruz (R-Texas) in Birmingham, Ala., on Friday that raised more than $250,000.
Britt is a freshman and is viewed as a rising star in the GOP. First elected in 2022, Britt was quickly added to Senate Minority Leader Mitch McConnell’s leadership team and won a spot on the coveted Appropriations Committee. She was also chosen to deliver the GOP response to the State of the Union earlier this year.
So far this cycle, Britt has raised the eighth most of any Republican senator for the NRSC, while her personal campaign account has nearly $3 million on hand.
Cruz is running against Rep. Colin Allred (D-Texas) as he seeks a third term in the Senate.
— Max Cohen and Andrew Desiderio
AND THERE’S MORE…
News: House Minority Whip Katherine Clark has tapped Robin Juliano as the new policy director. This is a high-profile get for Clark’s office.
Juliano is an experienced Democratic staffer who’s worked in the House, Senate and White House, including as staff director on the House Appropriations Committee. She did stints on the Senate Appropriations and HELP committees as well.
Juliano also served as senior adviser to the National Economic Council under former President Barack Obama.
“Robin is a trusted policy expert and a seasoned public servant. She is passionate about helping families get by and get ahead and was critical to helping House Democrats expand access to affordable child care, health care, and housing,” Clark said in a statement.
For the past 15 months, Juliano has been a principal at Cornerstone Government Affairs, a lobbying and PR firm. Her clients included AARP, Big Brothers Big Sisters of America and a number of colleges and universities.
— John Bresnahan
PRESENTED BY WALMART
Walmart’s investment in U.S. manufacturing is supporting 750,000+ American jobs.
MOMENTS
ALL TIMES EASTERN
10 a.m.
President Joe Biden will get his daily intelligence briefing.
BIDEN’S WEEK AHEAD
THURSDAY
Biden will depart Camp David en route to Atlanta for the first presidential debate with former President Donald Trump. First Lady Jill Biden will attend… After the debate, the Bidens will travel to Raleigh, N.C.
FRIDAY
The Bidens will participate in a campaign event in Raleigh… The Bidens will then travel to New York for an official event followed by a campaign reception.
SATURDAY
The Bidens will travel to East Hampton, N.Y., for campaign receptions… After, the Bidens will travel to Red Bank, N.J., for a campaign reception… Then, the Bidens will travel to Camp David.
CLIPS
NYT
“Why Bragg Dropped Charges Against Most Columbia Student Protesters”
– Chelsia Rose Marcius
NYT
“Israel’s Defense Minister Holds Talks in Washington on War’s Next Phase”
– Mike Ives
WaPo
“The national debt is ballooning. The next president probably won’t stop it.”
– Jacob Bogage
WSJ
“Netanyahu Says Intensive Fighting in Gaza Is Close to Ending”
– Dov Lieber and Shayndi Raice in Tel Aviv, Israel
AP
“Gunmen kill 15 police officers and several civilians in Russia’s southern Dagestan region”
– AP
PRESENTED BY WALMART
Walmart is helping create more than 750,000 jobs across the country by investing an additional $350 billion in products made, grown or assembled in America. This investment from Walmart is strengthening their commitment to local communities and is helping small suppliers like Proud Source Water in Mackay, Idaho. Since working with Walmart, Proud Source Water has grown by 50%, which means more jobs and a stronger community in Mackay. With two-thirds of products sold coming from local suppliers, working with Walmart helps small businesses like Proud Source Water grow. Learn how Walmart is supporting small businesses, American jobs and local communities through their commitment to U.S. manufacturing.
Editorial photos provided by Getty Images. Political ads courtesy of AdImpact.
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