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Happy Friday morning.
We reported in Thursday’s AM edition that the Senate Democrats’ reconciliation package could shrink significantly. And we wrote that it might end up being as narrow as only allowing Medicare to negotiate drug prices and extending Obamacare subsidies.
We were right.
The WaPo’s Tony Romm and Jeff Stein broke the news last night that Sen. Joe Manchin (D-W.Va.) reportedly told Senate Majority Leader Chuck Schumer Thursday that he’ll only support a package that extends Obamacare subsidies for two years, coupled with the Medicare prescription drug provision.
Manchin has dropped his support for the inclusion of tax and energy policies, deficit reduction and other provisions which he has long supported, according to a Democrat briefed on the discussions.
This is another setback for Schumer and the White House. They hoped that allowing Manchin to take the lead on the package – dubbed Build Back Manchin – would resolve any concerns he might have.
However, people close to Manchin say this is a move to box him into a Schumer set deadline, adding that the West Virginia Democrat hasn’t walked away from the negotiating table.
These sources also said Manchin has been clear this week that nothing had been agreed to yet and Democratic leaders needed to proceed cautiously on the climate and tax provisions of any reconciliation package given the latest economic data, including Wednesday’s disastrous inflation report. You can’t back out of something you haven’t agreed to in the first place, the sources said. Manchin has been very upfront about his concerns over inflation.
– John Bresnahan and Jake Sherman
PRESENTED BY COALITION FOR APP FAIRNESS
For too long, Apple & Google have abused their monopoly power to eliminate competition on mobile devices. For consumers, that has meant fewer choices, reduced innovation and higher costs.
And consumers know it. 83% of voters agree that the Open App Markets Act will give them more freedom to decide how and what apps are downloaded on their phones.
It’s time for Congress to pass the Open App Markets Act.
Scoop: House Democrats moving assault weapons ban
Breaking: The House Judiciary Committee will mark up an assault weapons ban next Wednesday, we can report exclusively.
This is a big deal. The Judiciary Committee hasn’t voted on an assault weapons ban in nearly 30 years – since 1994 – when a decade-long federal prohibition was signed into law. That ban ended a decade later.
The Judiciary Committee will vote on Rep. David Cicilline’s (D-R.I.) assault weapons bill, H.R. 1808. Earlier this week the House passed a separate bill by Cicilline that would create an “active shooter alert” program similar to the Amber alert system.
The Cicilline bill – which currently has 211 Democratic co-sponsors and no Republicans – would make it illegal for anyone to “import, sell, manufacture, or transfer” semi-automatic rifles that have certain “military features.” These features include a “detachable magazine” or “a fixed magazine with the capacity to accept more than 10 rounds.” Semi-automatic pistols and shotguns with similar features would also be covered.
The proposal does not – and we want to be very specific here because this will come up immediately – call for the removal or confiscation of any covered weapon that any American currently owns. However, this proposal would prohibit the manufacture or sale of new weapons if it were ever signed into law by President Joe Biden.
Exempted from these restrictions are antique firearms, as well as more than 2,000 different models of hunting or sporting rifles. The Cicilline bill includes a long list.
“AR-15 style firearms have become the weapon of choice for shooters looking to kill as many people as possible as quickly as possible and have been used in the deadliest mass shootings in our history, from Sandy Hook to Parkland to Uvalde… How many more kids need to die in their schools before we finally crack down on these dangerous firearms which were designed for war?”
Here’s Judiciary Committee Chair Jerry Nadler (D-N.Y.):
“It is beyond frightening and disturbing that a weapon that was designed as a tool of war has found its way into the hands of 18 year olds and onto our streets. Any weapon that allows for the quick and efficient slaughter of children in our schools has no place in our communities. This markup is another step in our efforts to make our communities safer. I look forward to moving this legislation through the Judiciary Committee next week and onto the House floor.”
We checked in with Democratic leadership aides, who say the bill could come up for a floor vote as soon as the last week of July. Currently, the votes are “right on the line” for passage, with a handful of moderate Democrats not fully supportive or outright opposed to the measure.
Speaker Nancy Pelosi and other top Democrats discussed this bill during a private meeting Thursday evening.
House Democratic leaders didn’t have enough support within their caucus for this bill just a few weeks ago. You’ll recall the chamber voted on a gun control package in the immediate aftermath of the massacre in Uvalde, Texas, but an assault weapons ban was not included despite some calls from Democrats to do so.
Earlier this week, Rep. Brad Schneider (D-Ill.) gave an emotional appeal for an assault weapons ban during a private Democratic Caucus meeting. Schneider represents the Highland Park area, where seven people were killed and dozens of others wounded in a mass shooting during a July 4th parade.
“There is great support in our caucus for an assault weapons ban,” Pelosi said Thursday. “It’s about our children. More children die from gun violence each year than cancer, car accidents, anything. How can that be?”
Republicans will overwhelmingly oppose this legislation, and there are more than enough GOP no votes in the Senate to derail it. An assault weapons ban offered by Sen. Dianne Feinstein (D-Calif.), who also sponsored the 1994 ban, only has 37 co-sponsors, signaling there’s not nearly enough votes to overcome a Republican filibuster.
Last month, Biden signed into law the most significant gun control package in three decades. The legislation included enhanced background checks for younger gun buyers, federal assistance for red flag laws and new federal mental health funding.
— Heather Caygle and John Bresnahan
Don’t forget to RSVP for the great events that we have coming up later this month!
Wednesday, July 20 at 7:45 a.m. ET (in-person at Nationals Park): We will be interviewing Sens. Marco Rubio (R-Fla.) and Ben Cardin (D-Md.) about the challenges facing small business owners coming out of the pandemic. RSVP Here.
Tuesday, July 26 at 9 a.m. ET (in-person at the Roost or virtual): Join us as we sit down with Deputy Secretary of Commerce Don Graves to talk about the chips shortage. RSVP Here.
Wednesday, July 27 at 9 a.m. ET (virtual): Jump online for the first conversation in our new series, “Building Trust in Technology.” We’ll be talking to Rep. Eric Swalwell (D-Calif.) about the importance of privacy and security in new and existing technologies. RSVP Here.
Raimondo says Congress is out of time on CHIPS
Next week is shaping up to be a hugely important one when it comes to USICA, a top legislative priority for President Joe Biden.
→ A few weeks ago, Senate Minority Leader Mitch McConnell said Republicans would kill USICA if Democrats tried to craft a reconciliation plan. Democrats went ahead on reconciliation anyway. These bills are completely unrelated.
→ Senate Majority Leader Chuck Schumer announced Thursday to his colleagues that he would bring up a stand-alone bill that includes $52 billion in semiconductor industry subsidies and related tax breaks since he can’t move the broader USICA bill due to McConnell’s opposition.
→ Speaker Nancy Pelosi and her leadership team discussed bringing a “CHIPS plus” bill to the floor as soon as next week during a private meeting Thursday night. But it’s still unclear what would be in that package.
→ Commerce Secretary Gina Raimondo’s warnings about the failure to pass the CHIPS portion of USICA have grown even more dire. Raimondo said that if Congress doesn’t pass the bill next week, semiconductor manufacturers are going to move their operations to Europe and Asia.
“Here’s what I know. I know that yesterday, the CEO of GlobalFoundries, a New York-based semiconductor company, was in France announcing an expansion. I know that Intel is being a bit squishy about what they’re doing in Ohio and they’re moving forward in Germany. I know that South Korea, Japan, India, Europe are right now wooing these companies to their shores. …
“I also know these … one -ime investments, right? They’re gonna make a $50 billion investment once. And I further know that where the big factories go, that’s where the whole ecosystem goes. Right? That’s where the substrate company goes, the chemical company goes, the talent goes, the R&D goes. So the reality is these decisions are happening now. And that means Congress needs to act now. And that’s what we need to push for.”
Raimondo also said on CNBC that if Congress doesn’t pass the CHIPS bill immediately China wins and the U.S. loses.
As we reported in the Midday edition, Sen. John Cornyn (R-Texas) said Republicans want to wait until the end of July to pass the CHIPS bill, with the goal of seeing whether Democrats can put together a reconciliation bill before then.
We will be following this closely.
– Jake Sherman
The first Punch Up Cohort
Thursday afternoon, we hosted the first dialogue conversation with our The Punch Up cohort focused on racial equity. We brought together the private and public sector for a robust conversation on the issues, misunderstandings, successes and impact of this work.
Thank you to Target for making this conversation possible.
To more convening, connecting and learning with our Cohort members: Tasha Cole of the DCCC, Kiera Fernandez of Target, Kemba Hendrix of OPM, Lori Castillo Martinez of Salesforce, Antonio Tijerino of the Hispanic Heritage Foundation, and Rick Wade of the Chamber of Commerce.
Join The Punch Up List and stay connected here.
PRESENTED BY COALITION FOR APP FAIRNESS
68% of voters think Big Tech has too much power – but there is a solution: the Open App Markets Act.
MORE FROM PUNCHBOWL NEWS
Punchbowl News is more than just a newsletter. We’re inviting our community to events, creating custom content and more. Check out everything we’re up to today!
→ Congressional Leadership Fund got $10 million from Timothy Mellon, a grandson of Andrew Mellon, the banker and industrialist. CLF has $130 million on hand.
→ Rep. Alexandria Ocasio-Cortez (D-N.Y.) raised $1.2 million last quarter and has just north of $6 million on hand.
→ Rep. Jim Jordan (R-Ohio) raised $1.28 million and has $8.3 million.
→ Former Rep. Devin Nunes (R-Calif.) still has $11 million in the bank.
→ J.D. Vance, the Republican running for Senate in Ohio, raised just $1 million and has $628,000 in the bank.
– Jake Sherman
PRESENTED BY COALITION FOR APP FAIRNESS
79% of voters agree 👆
All times eastern
President Joe Biden is in Israel. He already spoke at the Augusta Victoria Hospital in Jerusalem and he is currently in the West Bank visiting with Mahmoud Abbas, the president of the Palestinian Authority. The two leaders are expected to deliver joint statements shortly.
6:30 a.m.: Biden will visit the Church of the Nativity in Bethlehem.
8:25 a.m.: Biden will leave Tel Aviv for Jeddah, Saudi Arabia.
12:30 p.m.: Biden will arrive in Jeddah.
1:15 p.m.: Biden will meet with King Salman of Saudi Arabia.
1:45 p.m.: Biden will have a meeting with Crown Prince Mohammed bin Salman and other Saudi ministers.
→ “Here’s How Democrats’ Big Domestic Agenda Bill Has Shrunk,” by Emily Cochrane
→ “Israeli Security Officials Are Divided Over Iran Nuclear Deal,” by Ronen Bergman
→ “Stock Futures Waver Ahead of Retail Sales, Bank Earnings,” by Caitlin Ostroff
→ “China’s Economy Records 0.4% Growth, Weakest Since Wuhan Lockdown,” by Jason Douglas
→ “Jan. 6 Committee Considers Seeking Testimony From Donald Trump, Mike Pence,” by Scott Patterson
→ “Supply of US Homes for Sale Rises for First Time in Three Years,” by Paulina Cachero
→ “How some House Dems are trying to outrun a potential red wave,” by Ally Mutnick
→ “L.A. County on verge of indoor mask mandate as deaths, hospitalizations rise,” by Luke Money and Rong-Gong Lin II
PRESENTED BY COALITION FOR APP FAIRNESS
A recent poll showed that nearly 70% of voters disapprove of the job Congress is doing in regulating Big Tech. And 79% SUPPORT the commonsense, bipartisan Open App Markets Act.
OAMA would bring an end to the anticompetitive practices of mobile gatekeepers. It would open up app stores, giving consumers the freedom to choose where to get apps and how to make purchases inside apps. It would allow developers to communicate directly with their customers, without a middleman. And it would ban app store owners from giving their apps an advantage over others.
The bill has widespread support from developers and consumers alike, along with security experts who say greater competition on mobile devices will increase security and accountability.
It’s time for Congress to bring an end to the anticompetitive practices of Apple and Google and pass the Open App Markets Act.
Editorial photos provided by Getty Images
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