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PRESENTED BY
THE TOP
Happy Tuesday morning.
As of now, Senate Democrats are planning to start the process today of bringing a slimmed-down deal to the floor authorizing tens of billions of dollars in subsidies and tax credits for domestic semiconductor chip manufacturing.
We say this with some hesitation, however, because a number of senators are looking to add to the package.
Let’s review: Late last week, Senate Majority Leader Chuck Schumer planned to introduce a bill with $52 billion in support for the semiconductor industry, coupled with what the Senate calls “innovation” tax breaks. But Schumer left open the possibility that he’d add more provisions to the legislation if senators could find agreement on them.
So the lobbying began. Senators pushed for the inclusion of language that would encourage non-Chinese 5G equipment manufacturing. Lawmakers in both parties are working to secure language to overhaul the National Science Foundation, a core tenant of USICA, the legislative predecessor of this new proposal. And Sen. Todd Young (R-Ind.), a key USICA supporter, is working to insert commerce and national security provisions into the bill.
This is why there is some skepticism that the revised bill will reach the floor today. But whenever Schumer moves to advance the bill, he’ll have a bit of a shortcut. Senate Democrats will be able to move the CHIPS package on a House message. This parliamentary tactic will allow Schumer to bypass one cloture vote.
As we reported in the PM edition last night, Republicans appear to be lining up behind the CHIPS package, which we’re now going to call USICA Lite.
In the House, we’re beginning to sense some skepticism from Republicans on this package. We’re not sure how serious or widespread it is, but we talked to several key lawmakers who suggested that most House Republicans would vote against the package. The key for Pelosi is to find a pocket of pro-USICA Republicans to get it across the finish line. She’ll need them.
We expect this bill will pass the Senate at some point in the next week to 10 days. The House would vote on the measure before it leaves for the August recess.
Which leads us to reconciliation. As Schumer and other top Senate Democrats try to move the CHIPS bill, they’re also working on a reconciliation package on a parallel path. The Senate parliamentarian is expected to hold a key meeting on Thursday with GOP and Democratic staff to review the Democrats’ Medicare prescription drug pricing proposal.
The other big Democratic provision would provide two more years of premium support for Obamacare enrollees.
We reported in the PM edition last night that there’s a push in the Capitol to include Covid funding in the reconciliation package. This may be tricky. The Democratic leadership has to get buy-in from Sen. Joe Manchin (D-W.Va.) for anything they want to do. Manchin hasn’t signaled where he is on the issue yet.
The White House has been demanding for months that Congress approve billions of dollars in additional funding for Covid tests, therapeutics and vaccines. However, after saying these efforts would run out of money, administration officials reprogrammed existing Covid relief funding to cover the shortfall. That’s going to make it impossible to get any GOP support, so Democrats must approve this on their own.
This reconciliation package is one of the last legislative trains out of the station between now and Election Day. So we anticipate Democratic leadership to try to squeeze in as many priorities as possible.
Meanwhile, Speaker Nancy Pelosi sent Democratic lawmakers a letter Monday evening with this warning:
The short time between now and November will be intense. Our success, as always, will depend on a unified Democratic House Caucus.
Happening today: EPA Administrator Michael Regan will speak at the weekly New Dem Coalition lunch to discuss actions Congress and the administration can take to curb climate change. President Joe Biden hinted at more executive actions on this issue last week after Manchin blocked any inclusion of climate-related provisions in reconciliation.
Breaking overnight: FT: “Nancy Pelosi to visit Taiwan next month amid China tensions,” by Demetri Sevastopulo
– Jake Sherman, John Bresnahan and Heather Caygle
Tomorrow: Join us at Nationals Park at 7:45 a.m. ET for our interview with Sens. Marco Rubio (R-Fla.) and Ben Cardin (D-Md.), during Goldman Sachs 10,000 Small Businesses Advocacy Day. We’ll talk to them about issues facing small business owners coming out of the pandemic. RSVP here!
PRESENTED BY PHRMA
Today, there are 90 medicines in development for Alzheimer’s disease, 119 medicines for breast cancer, 26 medicines for childhood diabetes… But government price setting could mean fewer medicines in the coming years. Which diseases could go untreated if Congress passes government price setting? There is a better way to lower costs without risking new medicines.
PREMIUM MEMBERS EVENT
Join us this Thursday, July 21 at 12 p.m. ET for our July Brown Bag Lunch conversation. Each month Anna, Jake, Bres and Heather have a virtual briefing with and exclusively for our Premium community. We’ll be covering everything going on in Washington and answer your questions live. Get in the mix by joining Punchbowl News Premium.
INSIDE THE HOUSE GOP
GOP leaders expect lots of Republican votes for same-sex marriage bill
Dozens of House Republicans are expected to vote for legislation today codifying same-sex marriage into law, GOP sources tell us.
The legislation, the Respect for Marriage Act, was a topic of conversation in a meeting of ranking committee Republicans Monday, multiple sources told us. House Minority Leader Kevin McCarthy told the group that Republicans won’t whip the bill. Instead, McCarthy said leadership would allow members to vote however they want.
The Republican stance toward the Respect for Marriage Act is unusual compared to the other social policy legislation Democrats are pushing in the post-Roe v. Wade world. House GOP leaders are taking a hands-off approach here. Senior Republicans explain that the bill includes no language they consider controversial.
House Democrats had hoped that Republicans would vote against all of their legislation in the wake of the Dobbs decision so the party could draw a contrast with the GOP.
It’s unclear at the moment whether this bill would have legs in the 50-50 Senate.
– Jake Sherman
MANCHIN ANGST
Senate Democrats seethe, but won’t dump Manchin
Despite widespread anger in the Senate Democratic caucus over Sen. Joe Manchin’s (D-W.Va.) reconciliation stance, the West Virginian’s spot atop the Senate Energy and Natural Resources Committee is safe. While some senators continue to seethe in public, Democrats grudgingly acknowledge they need Manchin to be the 50th vote to approve President Joe Biden’s nominees and other important legislation.
Sen. Martin Heinrich (D-N.M.) surprised many last Friday when he publicly questioned why Manchin continued to serve as chair of Energy and Natural Resources and slammed Manchin’s “refusal to act” on climate change.
But when we caught up with Heinrich outside his office Monday, the New Mexico Democrat — a senior member of the committee that Manchin helms — said he hadn’t discussed ousting Manchin as chair with any of his colleagues.
“I just want to start a conversation,” Heinrich told us. Here’s more:
“We all went into this process very aware that we didn’t expect Joe Manchin to be some climate champion like Brian Schatz or Sheldon Whitehouse. But we did trust him to negotiate in good faith and right now there’s a trust deficit there.”
Heinrich was one of the few Democrats who publicly chastised Manchin following reports Thursday night that the West Viriginia Democrat would only vote for a narrow reconciliation package containing Medicare prescription drug language and Obamacare subsidy provisions. Many Senate Democrats were still upset with Manchin for sinking the Build Back Better Act in December, as well as his refusal to support elimination of the filibuster. Most, however, kept their frustration to themselves.
→ | Some Senate progressives, such as Sen. Mazie Hirono (D-Hawaii), were less than thrilled about the idea of trying to remove Manchin from his committee post. Hirono also serves on the Energy and Natural Resources panel. |
“To me, spending a lot of time trying to unseat Joe Manchin is time that I would rather see us spend trying to elect two more Democratic senators,” Hirono said.
However, most Democrats didn’t even want to engage on Manchin or what happened last week. They want to vote on a reconciliation package as soon as possible and declare victory.
“You know what? I’m done talking about my colleague from West Virginia,” Sen. Debbie Stabenow (D-Mich.) said. “I am gonna be talking about the things we can get done, like CHIPS. You want to talk about something that will make a difference?”
→ | For his part, Manchin told reporters Monday he understood Heinrich’s frustration. |
“I understand there’s one person and I understand their frustration and concern. It’s a democracy. I come from another state, but also energy is something we have to have. And we can walk and chew gum. We can find a pathway forward.”
— Max Cohen and John Bresnahan
PRIMARY DAY
What to watch for in the Maryland primary
Voters in Maryland are heading to the polls today. It’s the first primary day since June 28 and the only federal primary held all month. Here are the key races to track:
4th District Democratic primary: Former Rep. Donna Edwards (D-Md.) is attempting to reclaim her old seat, which she represented from 2008 to 2017. Edwards is facing Glenn Ivey in a primary that has been dominated by dueling spending by Israel advocacy groups.
Edwards, who has received Speaker Nancy Pelosi’s backing, has faced attacks from AIPAC’s super PAC, United Democracy Project. UDP has spent millions of dollars in the race, boosting Ivey and trying to portray Edwards as an ineffective member. In turn, progressive Israel group J Street is airing ads painting Ivey — an attorney — as a big business lobbyist. And just this week, Democratic Majority for Israel PAC aired ads supporting Ivey.
6th District Republican primary: Maryland Gov. Larry Hogan, House Minority Leader Kevin McCarthy, House Republican Conference Chair Elise Stefanik, Donald Trump Jr. and more are all backing 25-year-old former Washington Free Beacon reporter Matthew Foldi in the 6th District GOP primary. It’s a stunning array of institutional support for the political newcomer.
Foldi’s main competitor is GOP state delegate Neil Parrott, who won the 6th District primary in 2020. The winner will face off against Frontline Rep. David Trone (D-Md.). Trone is the mega-wealthy founder of Total Wine and More who recently loaned his campaign $10 million. President Joe Biden won the western Maryland district by 10 points in 2020, but Democrats worry the tough current political environment could put the seat in play.
Democratic gubernatorial primary: The wide-open Democratic gubernatorial primary has produced three frontrunners: author and entrepreneur Wes Moore, former Labor Secretary and DNC Chair Tom Perez and Comptroller Peter Franchot. Maryland Democrats are eager to reclaim the governor’s mansion after eight years of GOP control in the deep-blue state.
Republican gubernatorial primary: The Democratic Governors Association has spent millions of dollars boosting pro-Trump state delegate Dan Cox in the GOP primary. It’s the latest example of Democratic meddling in Republican primaries in order to boost a more right-wing candidate in the hopes they will make for an easier general election opponent. Cox’s main rival is close Hogan ally Kelly Schulz, who served as secretary of the Maryland Commerce Department under Hogan.
Election analysts believe Schulz would be competitive in a general election, while Cox would struggle to win over Democratic-leaning Hogan voters. Former President Donald Trump is backing Cox and urged Maryland Republicans to reject Schulz, who he labeled “Hogan’s anointed successor.”
— Max Cohen
PRESENTED BY PHRMA
Which diseases could go untreated if Congress passes government price setting? There is a better way to lower costs without risking new medicines.
THE CAMPAIGN
→ | Rep. Peter Meijer (R-Mich.) is running an interesting ad in Grand Rapids right now. He is bragging about going to Afghanistan shortly after the withdrawal, something that infuriated the Biden administration because of the delicate security situation in Kabul. |
– Jake Sherman
FRONTS
PRESENTED BY PHRMA
Government price setting could mean fewer medicines in the coming years.
DOWNTOWN DOWNLOAD
→ | Intel has hired Capitol Tax Partners to lobby on “[i]ssues related to international tax policy and research and development incentives.” |
MOMENTS
10 a.m.: President Joe Biden and Vice President Kamala Harris will get their daily intelligence briefing.
10:15 a.m.: House Democratic Caucus Chair Hakeem Jeffries, Vice Chair Pete Aguilar, Reps. Kathy Manning (D-N.C.) and David Cicilline (D-R.I.) will hold their post Democratic Caucus press briefing.
10:45 a.m.: House Minority Whip Steve Scalise, House Republican Conference Chair Elise Stefanik, Reps. Mario Diaz Balart (R-Fla.), David Joyce (R-Ohio) and Michelle Fischbach (R-Minn.) will hold their post Republican Conference press briefing.
2 p.m.: Senate leadership will speak in the Radio and TV Gallery after their weekly party lunches.
3 p.m.: House Majority Leader Steny Hoyer will hold his weekly pen and pad. … Karine Jean-Pierre will brief reporters at the White House.
CLIP FILE
NYT
→ | “How Joe Manchin Left a Global Tax Deal in Limbo,” by Alan Rappeport and Jim Tankersley |
→ | “C.I.A. Director Issues Warning After Possible Noose Is Found Near Facility,” by Julian E. Barnes and Adam Goldman |
WaPo
→ | “Biden could declare climate emergency as soon as this week, sources say,” by Tony Romm and Jeff Stein |
Bloomberg
→ | “China Warns Taiwan Visit by Pelosi Would Have ‘Grave Impact,’” by Colum Murphy, Cindy Wang, and Samson Ellis |
CNN
→ | “Former Trump National Security Council official expected to testify at Thursday’s January 6 hearing,” by Evan Perez and Zachary Cohen |
Politico
→ | “Rand Paul lights into McConnell over ‘secret’ judicial deal,” by Burgess Everett |
→ | “‘Sprint through the finish’: Why the Jan. 6 committee isn’t nearly done,” by Kyle Cheney and Nick Wu |
Philadelphia Inquirer
→ | “Founder of extremist social-media site working with Doug Mastriano has a message for news media: ‘Repent now,’” by William Bender |
PRESENTED BY PHRMA
Today, there are 90 medicines in development for Alzheimer’s disease, 119 medicines for breast cancer, 26 medicines for childhood diabetes… But government price setting could mean fewer medicines in the coming years. Which diseases could go untreated if Congress passes government price setting? There is a better way to lower costs without risking new medicines.
Editorial photos provided by Getty Images
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Visit the archiveAt Wells Fargo, we cover more rural markets than many large banks, and nearly 30% of our branches are in low- or moderate-income census tracts. What we say, we do. See how.