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July 17, 2023
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PRESENTED BY
THE TOP
Happy Monday morning.
What the Capitol will be talking about: Israeli President Isaac Herzog will address Congress Wednesday, and the House Democratic Caucus is scuffling over its support for the Jewish State.
Rep. Pramila Jayapal (D-Wash.), the head of the Congressional Progressive Caucus, said this weekend that Israel is a racist country. Jayapal later walked that back.
The House Democratic leadership issued a rare statement rebuking the Washington Democrat’s comment, even saying plainly that “Israel is not a racist state.”
Also, a group of influential Jewish Democrats — including Reps. Josh Gottheimer (N.J.), Debbie Wasserman Schultz (Fla.), Greg Landsman (Ohio), Jared Moskowitz (Fla.), Brad Schneider (Ill.), Kathy Manning (N.C.) and Dean Phillips (Minn.) – are planning to issue a statement sharply criticizing Jayapal. Here’s the draft statement, which was circulating last night.
The takeaway here is that the Democratic Party’s fissures on Israel will come to the fore this week, as Herzog addresses Congress. Between Jayapal’s remarks and an expected boycott by some Democratic lawmakers, this will dominate the first portion of this week.
On the right: House Freedom Caucus members are forcing their colleagues in swing districts to embrace red meat conservative causes as they exert outsized sway over the GOP conference.
Fresh off passing the FY2024 defense authorization bill that included several conservative “culture war” amendments and heading with confidence into a contentious appropriations season, the right flank is riding high.
In fact, several HFC members we spoke to say that welcoming their viewpoints can win elections, including in purple districts with Democratic and independent voters. They’re even encouraging their vulnerable GOP colleagues to come on board.
“I won with 52% when I ran in ‘20. I have to remind folks that I’m not in a ruby red district,” said Rep. Bob Good (R-Va.). Former President Donald Trump won Good’s district by more than eight points and it’s rated an R+7 by the Cook Political Report with Amy Walter. “You’ve got some courageous conservatives who are in purple districts. If you do right, you earn the respect and trust of your constituents and that’s important.”
Freedom Caucus Chair Scott Perry (R-Pa.), who is listed as a target of the House Democrats’ campaign arm, said he isn’t concerned about taking unpopular positions despite the nature of his district.
“If it’s ideological to love America and to love your country and to work tirelessly to ensure that it continues for future generations, ok, so be it,” Perry told us.
Rep. Dan Bishop (R-N.C.) said he’s “sympathetic” to his colleagues in tough districts, but argued members who are elected as Republicans should stand with the party and with conservative causes.
“Republicans have to deliver Republican change on behalf of Republican votes,” Bishop told us. “That can’t be subordinated to the notion that somebody might wear a Republican label but serve basically as a Democrat in a marginal district.”
The weakness in this argument, of course, is that without those “marginal” districts, Republicans would not be in the majority. This is the push and pull that Republicans have experienced consistently since 2010, when they took back the majority and the House Republican Conference shifted decidedly to the right.
Traditionally, it’s up to the leadership to temper the wings of their party and to protect more moderate lawmakers from having to take tough votes. But in this Congress, the narrow majority has forced GOP leaders to side with hardliners and urged the middle to support bills loaded up with conservative provisions.
The DCCC is targeting 33 GOP seats next year, including Perry and other Freedom Caucus members such as Reps. Lauren Boebert (Colo.) and Anna Paulina Luna (Fla.). Boebert narrowly won reelection by less than 600 votes last year, after facing a near upset by a Democratic newcomer.
Rep. Marc Molinaro (R-N.Y.), who represents a district won by President Joe Biden in 2020, criticized the conservative bloc for painting a broad picture of success for the party.
“I don’t think it’s a very smart move to reflect on what works in another member’s district,” Molinaro told us.
Rep. Anthony D’Esposito (R-N.Y.), who represents another Biden-won district, said he has to keep his independent and Democratic supporters in mind when he takes votes on the floor.
“Registered Democrats outnumber Republicans by close to 80,[000]-85,000, so we’re not getting sent to Washington, D.C. to represent the people because we’re only being supported by conservative Republicans,” D’Esposito told us. “Anybody in elected office needs to be careful of the votes they make.”
This dynamic was on full display when the GOP’s most vulnerable members supported a slew of controversial conservative amendments to the NDAA, including one to rescind the Pentagon’s abortion policy. Democrats are already planning to target Republicans based on those votes.
Other moderate Republicans said they were frustrated by the Freedom Caucus’ constant disruption of regular order when the group feels like its demands aren’t being met.
“Those folks are more interested about their own personal identity than they are about doing work for their district,” Rep. Zach Nunn (R-Iowa) told us.
Rep. Jen Kiggans (R-Va.), who flipped a Democratic seat in 2022, said she wanted more voices to be heard by party leadership when HFC takes up much of their attention.
“I don’t love it,” Kiggans told us. “All voices should be heard equally. We all have districts that we represent and when we feel like a faction of our party is getting heard louder than others, I don’t think that’s right.”
Speaker Kevin McCarthy has pushed back strongly against accusations that he’s pressured by the Freedom Caucus or that the group has expanded its influence.
“Do I feel vulnerable to the Freedom Caucus? My answer to you is no,” McCarthy told us last week.
Happening tomorrow! Join Punchbowl News founders Anna Palmer and Jake Sherman at 5 p.m. for cocktails and conversation with Sen. Todd Young (R-Ind.) and Rep. Ro Khanna (D-Calif.). They’ll discuss the quantum revolution and policy opportunities with the National Quantum Initiative Act reauthorization. RSVP here!
– Mica Soellner
PENTAGON POLITICS
HASC Chair Rogers blocking all Pentagon reprogramming requests
House Armed Services Committee Chair Mike Rogers (R-Ala.) is blocking all Defense Department reprogramming requests in order to force a final decision on the U.S. Space Command headquarters, according to documents we obtained and sources familiar with Rogers’ move.
It represents a significant escalation as he pushes the Pentagon to officially name Huntsville, Ala., as the home base for Space Command.
Space Command is temporarily headquartered in Colorado. That state’s lawmakers are calling for it to remain there despite a previous recommendation by the department that its permanent home be constructed in Huntsville. The Pentagon is still reviewing the Trump-era decision.
The Military Times reported last week that the dispute over the Space Command basing decision was at the center of one yet-to-be-approved reprogramming request centering on Permanent Change of Station (PCS) orders and bonuses for members of the Air Force.
But it actually goes much further than just this one reprogramming request. And it’s Rogers who is standing in the way of all pending requests, sources involved in the discussions told us. The Pentagon is raising alarm about the issue to Congress, noting that it’s also stunting hypersonics development, according to the documents we obtained.
Another outstanding reprogramming request centers on instituting “incentive pay” for the Air Force to help make up for a pilot shortfall of around 2,000, according to another document, citing “aggressive commercial airline hiring efforts.”
Here’s an excerpt from a Pentagon talking-points memo sent to some Hill offices:
The document, which does not mention Rogers, goes on to state that all military departments will face challenges before the end of the fiscal year “to fund efforts such as special pay and special recruiting bonuses.”
Here’s what House Armed Services Committee spokesperson Justine Sanders told us:
A Pentagon spokesperson did not respond to a request for comment.
Reprogramming requests are largely routine and require signoff from the chair and ranking member of the House and Senate Armed Services committees, as well as the House and Senate defense appropriations subcommittees. They allow the military to move funds around when there are surpluses or shortfalls in specific parts of the budget.
This all comes as another Alabamian, GOP Sen. Tommy Tuberville, is standing in the way of swift approval of senior-level military promotions as a protest to the Pentagon’s abortion policy.
Back in May, we reported on concerns that Tuberville’s move was imperiling Alabama’s bid for the Space Command HQ. A White House-ordered review of the basing decision is months late, and the administration is reportedly concerned about Alabama’s restrictive abortion law as it decides whether to honor the Huntsville decision.
So Rogers is using his leverage as Armed Services Committee chairman to force the Pentagon to complete the review and officially name Huntsville as the HQ for Space Command — joining Tuberville in holding up matters that are usually routine.
— Andrew Desiderio
📅
What we’re watching
New: The CEOs of American Airlines, Alaska Air and United have written a letter to House and Senate leadership, trying to kill the chances of extending the DCA perimeter rule in the FAA reauthorization bill. Delta is trying to relax the perimeter, as we’ve written about. The FAA authorization bill is up in the House this week.
Monday: The House Rules Committee will hold a hearing on the Securing Growth and Robust Leadership in American Aviation Act, which reauthorizes the FAA until 2028, and the Schools not Shelters Act, which bars funding for schools that “provide shelter or housing for any non-U.S. national.”
Tuesday: The House Armed Services Committee will hold a hearing on “the barriers that prevent the Department of Defense from adopting and deploying artificial intelligence (AI) effectively and safely, the Department’s role in AI adoption, and the risks to the Department from adversarial AI.”
The House Financial Services Committee will hold a hearing on whether financially regulators are politically independent, featuring Michael Gibson of the Federal Reserve. Financial Services will also hold a hearing with Erik Gerding, the director of corporate finance at the SEC.
Wednesday: The House Oversight Committee will hold a hearing with IRS whistleblowers about the Biden family. The House Administration Committee will hold an oversight hearing with the inspector general of the Capitol Police.
Thursday: The China select committee will hold a hearing on the Biden administration’s China strategy. Three administration officials will testify.
Robert F. Kennedy Jr. will testify at a Weaponization of the Federal Government panel hearing on the “government’s role in censoring Americans.”
The Senate Judiciary Committee will mark up legislation that implements ethics guidelines for Supreme Court justices.
The Senate Appropriations Committee will mark up three funding bills: Energy/Water Development, State/Foreign Ops, and T-HUD.
The Senate Armed Services Committee will hold a confirmation hearing for Lt. Gen. Timothy Haugh’s nomination to serve as director of the National Security Agency.
— Jake Sherman
THE MONEY GAME
Exclusive: House Minority Leader Hakeem Jeffries raised a huge $29 million during the second quarter, a substantial haul that takes his total amount raised in 2023 to $62.4 million.
Jeffries’ tally is $7.3 million more than what Speaker Kevin McCarthy raised in Q2. Jeffries, of course, is following in the footsteps of former Speaker Nancy Pelosi — a legendary fundraiser. It’s clear that in his first half-year as Democratic leader, Jeffries can keep up in the money game department.
News: Sen. Eric Schmitt (R-Mo.), who has emerged as a major fundraiser for Senate Republicans, is endorsing Tim Sheehy for Senate in Montana.
Here’s the statement from Schmitt:
This is another blow for Rep. Matt Rosendale’s (R-Mont.) potential Senate run.
Behind the numbers: An NRCC source points out that their “patriots” – endangered GOP lawmakers – raised 56% more than House Democratic frontliners in Q2.
House GOP Patriots raised an average of $776,620 compared to $498,662 for Dem frontliners.
And Patriots have 61% more cash on hand then Democratic front liners. Patriots have an average of $1,221,724 on hand, while Frontliners have an average of $757,829.
Getting more hard dollars into candidates’ accounts has been a major push for NRCC Chair Richard Hudson.
Second Quarter Money Report: Protect the House, a McCarthy joint fundraising committee, got $483,900 from Citadel hedge fund honcho Ken Griffin and $677,300 from billionaire Donald Friese. Marlene Ricketts, the wife of billionaire Joe Ricketts and the mother of Sen. Pete Ricketts (R-Neb.), gave McCarthy’s victory committee $300,700. Oracle’s Safra Catz gave McCarthy $50,000.
Jeffries’ joint fundraising committee got $300,700 from Joan Ganz Cooney, one of the founders of Sesame Street.
The Biden Victory Fund raised $40 million in the second quarter. Big donors include: Marilyn and Jeffrey Katzenberg ($1,779,200); Choice Hotel’s Stewart and Sandra Bainum ($1,859,200); LinkedIn founder Reid Hoffman ($699,600); Illinois Gov. J.B. Pritzker ($125,000); OpenAI’s Sam Altman ($100,000); Netflix’s Reed Hastings ($100,000); Barry Diller ($100,000); Peter Orszag ($100,000); Tory Burch ($50,000).
Rep. David Trone (D-Md.) gave his campaign for the Senate $9,725,000.
Warren Stephens, the Arkansas billionaire, gave House Majority Leader Steve Scalise’s victory fund $300,700.
– Jake Sherman and Max Cohen
DOWNTOWN DOWNLOAD
Lux Capital, a venture firm, has hired Invariant to lobby on AI.
The City of Atlanta has hired Kaplan Kirsch & Rockwell to lobby on FAA reauthorization. Atlanta, Delta Air Lines’ main hub, is the busiest airport in the world.
Emirates Airlines has also hired H4 Advisors to lobby on “[g]eneral aviation policy matters affecting the airline industry.” Naveen Rao, the former counsel for the aviation subcommittee in the House, will lobby for Emirates.
Orangetheory, the popular workout company, and Planet Fitness have both has hired Holland and Knight to lobby on “[i]mportance of physical fitness and physical activity; Support for small gyms and fitness centers.”
– Jake Sherman
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Presented by The Electronic Payments Coalition
An FTC report exposes how corporate mega-stores profited off COVID price hikes while consumers paid more. Now, they want us to trust them on “savings” from credit card mandates. The FTC calls it Greedflation—we call it a scam. Don’t let them cash in again.