The Archive
Every issue of the Punchbowl News newsletter, including our special editions, right here at your fingertips.
Join the community, and get the morning edition delivered straight to your inbox.
August 14, 2023
Punchbowl News Presents
Introducing Tech – our newest policy vertical. From high-profile interviews with industry influencers & policymakers to key lobbying updates, Punchbowl News Tech will be your go-to for timely technology insights.
THE TOP
Happy Monday morning.
Reminder: We’ll only be publishing AM editions for the next two weeks.
The biggest political story this week will be a potential indictment of former President Donald Trump in Georgia. Fulton County DA Fani Willis will present more evidence to the grand jury and could seek charges for up to a dozen people over efforts to overturn the 2020 election, CNN reported.
We’ll also see President Joe Biden, Vice President Kamala Harris and other top administration officials fan out across the country for events celebrating the anniversary of the Inflation Reduction Act, a signature Biden legislative achievement.
Congress is on recess until early September but there’s still Capitol Hill news to watch.
Funding: House Republicans have a conference call tonight at 6 p.m. Eastern time to discuss FY2024 government funding, the thorniest issue they’ll face this fall. Speaker Kevin McCarthy is hosting his annual retreat in Jackson Hole, Wyo., this week.
Remember: Government funding expires Sept. 30. House Republicans are deeply divided on spending, as evidenced by their failure to pass the Agriculture appropriations bill before the recess. We wanted to lay out a few dynamics to focus on during this call. And we’ll have more in the Tuesday AM edition.
No. 1: The supplemental. The Biden administration has requested $24 billion for Ukraine, out of a $40 billion package overall. This will be a very difficult lift for McCarthy, especially since the White House didn’t consult House Republican leadership before announcing the package. There’s growing opposition among rank-and-file GOP lawmakers to funneling more money to the Ukraine war.
One idea that’s been bouncing around House Republicans leadership circles is seeking spending cuts to offset any increase in spending from the supplemental, which is deemed an emergency and doesn’t count toward annual budget caps. This will be an incredibly tough play and we can see it becoming another flashpoint between the House, Senate and White House.
There’s a lot of concern among House Republicans that the Senate will try to use the supplemental to further boost Pentagon spending beyond the $886 billion limit outlined in the debt-ceiling agreement between McCarthy and Biden. We expect to hear McCarthy reiterate his opposition to any spending that exceeds that cap.
House GOP leaders may press for more border security funding. That could be one possible tradeoff in return for new Ukraine funding.
No. 2. FEMA: The White House has proposed $12 billion in disaster funding for FEMA as part of the supplemental package. Last week’s horrific wildfires in Maui killed more than 90 people and caused potentially billions of dollars in damage that will likely take years to repair. Catastrophic weather-related events also hit New York, Tennessee and Mississippi and a host of other states this year, on top of a series of climate-related disasters last year. So we’re wondering if $12 billion will be enough, sadly.
No. 3: Jack Smith’s funding. Some Trump supporters have called for zeroing out funding for special counsel Jack Smith’s investigations into the former president or cutting off his salary. This is on top of a $2 billion cut to the Justice Department proposed by House Republicans in their version of FY2024 Commerce-Justice-Science funding bill.
None of this will happen, of course. The Senate and White House will never agree to it. But Trump supporters will press for some action against Smith and the Justice Department.
No. 4: House Freedom Caucus. These hardline conservatives have been plotting their appropriations strategy throughout the recess, as we reported last week. HFC members will press McCarthy to keep his promise to abide by the FY2022 funding level for appropriations bills, which would lead to a $100 billion-plus cut to federal agencies, especially those dealing with social services.
Also: The House Judiciary Committee expects U.S. Attorney for Delaware David Weiss to come in for both a transcribed interview and public testimony in the coming weeks, although we wonder if that will happen now that he’s been formally designated as a special counsel in the Hunter Biden case. We’ll keep our ears open for more details on this. Attorney General Merrick Garland’s Sept. 20 appearance before the panel also should be interesting. If Weiss doesn’t testify now — after DOJ offered possible dates for his appearance — would House Republicans use that to seek Garland’s impeachment?
– Jake Sherman and John Bresnahan
Excited for Punchbowl News on the road? Don’t forget to RSVP for our conversation on Friday, Sept. 8 at 12:30 p.m. CT/1:30 p.m. ET. We’re headed to Bismarck, N.D. to interview Sen. John Hoeven (R-N.D.) and Rep. Kelly Armstrong (R-N.D.) about challenges facing small business owners in rural America. Join us on the livestream or in Bismarck!
WASHINGTON X THE WORLD
W.H. considering Jack Lew for ambassador to Israel
Barak Ravid of Axios and the Israeli outlet Walla are reporting that President Joe Biden is considering nominating Jack Lew to serve as U.S. ambassador to Israel.
This would put a contentious confirmation battle on the Senate’s already-busy schedule for the fall while also prompting a broader debate over the Biden administration’s policies toward Israel and Iran.
Since we assume most of our readers can’t read Hebrew, here’s what the report in Walla says: The former Treasury secretary and White House chief of staff is the “leading candidate” to replace Tom Nides as the U.S. envoy to Jerusalem. The White House is already vetting Lew — the only candidate getting that treatment — in advance of sending his candidacy to the Senate Foreign Relations Committee in the next few weeks.
The White House didn’t have any comment.
Lew would be a natural choice for the post. He’s Jewish and has worked closely with Israeli Prime Minister Benjamin Netanyahu in the past. In addition to his stints as Treasury and in the White House, Lew twice served as OMB director under former Presidents Bill Clinton and Barack Obama. Lew was also No. 3 at the State Department under former Secretary of State Hillary Clinton. So he’s easily qualified for the Jerusalem posting.
But there are a few dynamics to keep in mind when thinking about whether Lew — or anyone — can be confirmed for this job by the Senate.
The White House and Democrats will argue that the United States needs an ambassador in Jerusalem because Israel is one of America’s closest allies in the world and a hot spot for diplomacy. Furthermore, the United States is heavily involved with trying to cut a deal to normalize relations between Israel and Saudi Arabia.
Plus, Republicans have been vocally critical of the Biden administration’s policies toward Israel — especially the White House’s criticism of Netanyahu’s judicial reform push. This is expected to come up if Biden nominates Lew.
But Lew’s nomination would face some roadblocks, despite his obvious credentials. The Senate is going to be consumed with FY2024 appropriations bills and averting a government shutdown in September and perhaps beyond. There’s also other must-pass legislation that’ll need floor time. It’s extraordinarily unlikely that this nomination would be fast-tracked — regardless of who it is — so floor time will be necessary.
Plus, any nomination to represent the United States in Israel becomes a proxy fight over the Iran nuclear deal, which was cut when Lew was Treasury secretary. Lew was involved in both crafting and enforcing the diplomatic agreement, although he wasn’t a lead player.
That could give Republicans a reason to oppose Lew, both in committee and on the floor. One person close to the confirmation process said Lew’s involvement in the JCPOA would almost certainly be an issue, noting that Sen. Bob Menendez (D-N.J.), the Foreign Relations Committee’s chair, also opposed the 2015 nuclear pact. Menendez likely wouldn’t stand in the way of Lew’s nomination, however.
Last month, Menendez noted to us that the Biden administration was “having problems with nominations at large” and will “have to decide what to use capital on.” Menendez was referring to the handful of Republicans who have been blocking nominees across all sectors of the executive branch.
So Lew will likely be confirmed if nominated, but he’ll definitely get banged up a bit in the process.
“No high profile nominee from such an unpopular administration gets a free pass,” said a Senate GOP leadership aide, speaking on the condition of anonymity. “But he’s not radioactive and wasn’t the lead on the Iran deal.”
Before the August recess, some GOP senators who were blocking Biden’s ambassador nominees struck a deal with the State Department to allow more than a dozen of those to be confirmed. There are still several nominees in the queue, though, and adding an Israel envoy into the mix would certainly complicate things.
The Senate Foreign Relations Committee’s GOP roster includes some of the most vocal critics of Biden’s posture toward Israel and Iran, including Sens. Ted Cruz (R-Texas) and Marco Rubio (R-Fla.), among others. Plus, Republicans have already been slamming the Biden administration over a potential prisoner swap that would allow Iran to access frozen funds.
— Jake Sherman and Andrew Desiderio
THE MONEY GAME
Cubs, Semiahmoo and Martha’s Vineyard: Where members are fundraising this week
This is a big week for fundraisers. Duh. It’s August recess.
We have some news: A number of prominent Republicans are hosting a fundraiser for Kellen Curry — one of the primary challengers to scandal-ridden Rep. George Santos (R-N.Y.) — in D.C. next month.
Former HHS Secretary Tom Price — who resigned due to scandals of his own — is headlining the fundraiser. Former GOP Reps. Lamar Smith (Texas), Philip English (Pa.) and John Shimkus (Ill.) are also on the host committee. Here’s a peek at the invite:
As we scooped last week, Speaker Kevin McCarthy is hosting his annual trip to Jackson Hole, Wyo., this week.
Also: House Minority Leader Hakeem Jeffries is hosting the big DCCC donors trip in San Diego at the end of the week.
Rep. Mike Quigley (D-Ill.) is hosting a PAC trip to Wrigley Field for the Cubs vs. the White Sox. That’ll set you back $2,500 for a PAC or $1,000 for an individual.
Rep. Jim Clyburn (D-S.C.) is going to Martha’s Vineyard — and you can join in for anywhere from $250 to $2,000. Rep. Joyce Beatty (D-Ohio), the former chair of the CBC, has a trip on the Vineyard beginning Aug. 18, as well.
Want to head out west? Rep. Rick Larsen (D-Wash.) is hosting his 2023 Semiahmoo trip in Blaine, Wash.
— Jake Sherman and Max Cohen
THE CAMPAIGN
Brandon Presley, the Democratic nominee for governor of Mississippi, is running a new ad statewide saying he will expand Medicaid for “working people.” Presley is facing Mississippi Gov. Tate Reeves in 2024.
— Jake Sherman
DOWNTOWN DOWNLOAD
North Island Ventures, a crypto-focused investment firm, has hired Lyndon Boozer at Capitol Counsel to monitor “federal legislation related to cryptocurrency policy and regulation.”
The Kraft-Heinz Company has hired Shannon Campagna at Mercury Public Affairs to lobby on plant-based food issues.
BGI Shenzhen Co., a Chinese research company, has hired Steptoe and Johnson — including former Puerto Rican Gov. Luis Fortuno — to lobby on the NDAA.
— Jake Sherman
Crucial Capitol Hill news AM, Midday, and PM—5 times a week
Join a community of some of the most powerful people in Washington and beyond. Exclusive newsmaker events, parties, in-person and virtual briefings and more.
Subscribe to Premium
The Canvass Year-End Report
And what senior aides and downtown figures believe will happen in 2023.
Check it outEvery single issue of Punchbowl News published, all in one place
Visit the archive
Punchbowl News Presents
Introducing Tech – our newest policy vertical. From high-profile interviews with industry influencers & policymakers to key lobbying updates, Punchbowl News Tech will be your go-to for timely technology insights.
Read our first Tech Quarterly now