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PRESENTED BY

BY JOHN BRESNAHAN, ANNA PALMER AND JAKE SHERMAN
WITH MAX COHEN AND CHRISTIAN HALL

THE TOP

Good Monday morning!

This is crunch week for President Joe Biden, Senate Majority Leader Chuck Schumer, and Sen. Joe Manchin (D-W.Va.) on the Build Back Better Act and other key issues, including voting rights.

Biden and Manchin will speak about the BBB as early as today, a discussion that will go a long way toward deciding whether the $1.7 trillion package — the president’s top legislative priority — can be finished before Christmas or will slide into 2022.

Manchin will also meet Tuesday with a group of moderate Democrats on voting rights. Voting-rights advocates want to see if Manchin would be open to a “carve-out” to the Senate’s filibuster rule for voting rights legislation. The idea gained more urgency for voting rights advocates after the chamber approved a “one-time exception” to its rules to approve a debt-limit increase by a simple majority vote.

With so much at stake, the lobbying of Manchin from both sides is getting frantic. Schumer met with Manchin last Thursday on BBB, and other Democrats have been seeking private one-on-ones with him as well. In the past, Manchin and Schumer had a close relationship, although it has clearly frayed during the last year under the enormous strain of the 50-50 Senate.

Meanwhile, Sen. Lindsey Graham (R-S.C.) urged the West Virginia Democrat to oppose BBB. Graham said he asked CBO for a score on the package after Manchin reportedly told him “it was full of gimmicks.” That CBO estimate showed BBB would increase the deficit by $3 trillion over a decade if all the programs in it were extended for 10 years. Democrats dismissed the report as a meaningless stunt, noting that it didn’t include any of the offsets they proposed. But that didn’t stop Graham from urging Manchin to vote no.

"They should re-vote it in the House, and Senator Manchin, you are right. I hope you’ll stand up and stop this madness,” Graham said on “Fox News Sunday.” “We need to stop Build Back Better before it destroys this country.”

Of note — Manchin still hasn’t commented publicly on a Labor Department report from last Friday showing inflation spiking at the highest rate in 40 years. Manchin has talked repeatedly about how inflation is hurting West Viriginians, raising it as a possible reason for holding off on passing BBB, despite all the pressure from Schumer and the White House.

There are a few ways to think about Manchin’s calculus. If Manchin is going to vote for BBB, why not do so now? Manchin has gotten almost everything he’s asked for so far. Democrats will drop the paid family leave provision he opposed, as well as climate-change language. And the House passed the $1 trillion bipartisan infrastructure bill he helped draft, a huge plus.

Manchin also doesn’t mind being the lone Democrat to oppose a party priority, although this one is different. If it’s 49-1 to one with Manchin being the lone holdout, he will find it harder to resist Biden’s pressure.

Yet Manchin is serious when it comes to the inflation issue, and he’s repeatedly expressed concern that another big federal spending package — even one phased in over years — will make that situation worse.

Schumer has been leaning on rank-and-file Senate Democrats to pass BBB by Christmas, arguing that it’s time to get it done. Schumer has pushed especially hard on the Child Tax Credit, which expires this month unless Congress acts. The Senate parliamentarian will hold bipartisan “Byrd Bath” meetings to continue vetting the legislation this week. Parliamentarian Elizabeth MacDonough’s rulings on House-passed immigration provisions and an electric vehicle tax credit that would benefit labor unions are among those being watched very closely on and off the Hill.

The Senate Finance Committee released an 1,180-page “update” on Saturday of the BBB tax provisions. “The Finance Committee has made targeted improvements to the Build Back Better Act, and is ready to move forward in this process,” Finance Committee Chair Ron Wyden (D-Ore.) said in a statement. “The package is fully paid for by ensuring profitable mega-corporations and wealthiest Americans pay their fair share. While conversations are continuing, the committee is prepared for bipartisan meetings with the Senate parliamentarian next week."

But Senate Democrats still haven’t reached a deal on the contentious state and local tax deduction (SALT), an issue that has pitted progressives against blue state lawmakers — like Schumer — who want to do something for homeowners back in their states. The House raised the deduction cap from $10,000 to $80,000. Progressives, though, have criticized that move as a sop to the rich. Republicans have also pounded Democrats on the issue, and there’s been no resolution to the standoff.

The debt limit and NDAA

Even as the BBB debate gets the most focus — deservedly so — there will be several other big votes in the Senate this week as well. Democrats are expected to push through an increase in the debt limit on Tuesday. Democratic leaders have not announced how big an increase they will seek, but it’s expected to be on the order of at least $2 trillion. That will extend the debt limit out past the 2022 midterm elections. Yet it may become a political problem for some vulnerable Senate Democrats up this cycle, including Sens. Catherine Cortez Masto (Nev.), Mark Kelly (Ariz.) and Maggie Hassan (N.H.). The House is set to come back from recess on Tuesday and will vote on the measure once the Senate has passed it.

“First of all, I don’t think we should ever get very close to defaulting on our debt,” Kelly told us in an interview last week. “I don’t think about what happens in here [the Senate] in terms of what it means for my election in November… We should never get close to defaulting.”

The Senate will also complete work on the National Defense Authorization Act this week. The annual defense policy bill, approved by Congress every year since 1961, is considered a must-pass bill, and there is bipartisan agreement on a compromise measure that should make it through the chamber.

Schumer has queued up votes on several more judicial nominations for this week too.

What the White House is focused on

At the White House: The administration is focusing this week on “lowering prices for American families, infrastructure that will build a better America, and easing up supply chains to get goods from ships to shelves quickly,” a White House official told us. 

Vice President Kamala Harris, Energy Secretary Jennifer Granholm and Climate Adviser Gina McCarthy will travel to Maryland today to announce an “electric vehicle charging action plan.” 

From a White House official: “Throughout the week, the Administration will make key announcements on everything from trucking to lead pipes to major community investments grants, including for coal and energy communities and others that have seen historic disinvestment. The Administration is kicking into high gear before the new year and making sure we’re continuing to meet Americans where they are and showcase how we are changing lives for the better.”

Reminder: We’re interviewing Sen. Susan Collins (R-Maine) tomorrow at 4:30 p.m. ET on the impact of the bipartisan infrastructure bill and the need for broadband access across the country. RSVP today!

ALSO HAPPENING THIS WEEK

Jan. 6 committee to vote on Meadows criminal contempt today

There are a bunch of things for you to keep your eye on this week in addition to the Build Back Better action in the Senate.

Today: The Jan. 6 committee will vote to refer Mark Meadows, former President Donald Trump’s chief of staff and their former colleague, to the Justice Department for criminal contempt after he refused to comply with a subpoena from the panel. This referral — an extraordinary move —  will come to the floor this week and is expected to pass on a party-line vote, plus GOP Reps. Liz Cheney (Wyo.) and Adam Kinzinger (Ill.). 

Read the correspondence between Meadows’ lawyers and the committee. Also, check out the White House’s November letter to George Terwilliger, Meadows’ lawyer. Also, check out the Dec. 7 letter from the committee to Terwilliger telling him the committee will likely have to hold Meadows in contempt.

Tuesday: Senate HELP will hold a hearing on Robert Califf to be FDA administrator. This will be interesting as there’s a bit of dissent about his nomination. Senate Banking has a crypto hearing on stablecoins. Senate Foreign Relations will hold a hearing on Eric Garcetti’s nomination to be ambassador to India, Amy Gutmann’s nomination to be ambassador to Germany and Donald Blome’s nomination to be ambassador to Pakistan. We anticipate there is going to be a big push for the Senate to confirm a big block of ambassadors before the end of the year.

Wednesday: Senate Commerce will hold a hearing on the airline industry with Doug Parker, CEO of American Airlines, Gary Kelly, CEO of Southwest, Scott Kirby, CEO of United, John Laughter, EVP and COO of Delta, Sara Nelson, the president of the Association of Flight Attendants-CWA and Mike Tretheway, EVP and chief economist for InterVISTAS Consulting.

Thursday: The Helsinki Commission will have a hearing on Russia and Vladimir Putin.  

WASHINGTON FOOTBALL TEAM x PUNCHBOWL NEWS

Punchbowl News partnered with the Washington Football Team yesterday to bring an exclusive group of D.C. decision makers to the WFT vs. Dallas Cowboys game at FedEx Field. It was a beautiful day for a game and great to be with so many Punchbowl News community members. 

We have an exclusive offer for our community. Use our Punchbowl News promo link for discounted tickets to the final WFT home game of the season on Jan. 2 against the Philadelphia Eagles. Purchase tickets here.

Finally, a huge thank you to the Washington Football Team for hosting us, especially Vice President of Public Affairs Joe Maloney, team president Jason Wright, and senior adviser to the team president and former WFT quarterback Doug Williams, who stopped by to say hello.

Cheering from the box:  Drew Maloney of American Investment Council, Bruce Andrews of Intel, Jon Kott of Capitol Counsel, Marissa Mitrovich of Frontier Communications, Mike Parrish of Bayer, Danielle Burr of McKinsey, Fred Humphries of Microsoft, Jane Adams of Johnson & Johnson, Stephen Ciccone of Toyota, Tasha Cole of the DCCC, Isaac Reyes of Target, Sean Kennedy of the National Restaurants Association, Brett Loper of American Express, Cameron Normand of Sony, David Castagnetti of Mehlman Castagnetti Rosen & Thomas, Craig Purser of the National Beer Wholesalers Association, Heather Higginbottom of JPMorgan Chase, Matt Miller of Business Roundtable, AJ Jones II of Starbucks, Lanier Hodgson of UNC Health Care, Michael Beckerman of TikTok, Alex Katz of Blackstone and Robby Zirkelbach of ExxonMobil. 

BIG JOB MOVE

Tim Keating to BHFS

First in Punchbowl News AM: Tim Keating, the longtime head of government relations for Boeing, is heading to Brownstein Hyatt Farber and Schreck. This is a big get for the Denver-based firm. Keating is joining as a policy director.

Keating was at Boeing for 13 years before the company abruptly announced that he was leaving the Seattle-based aircraft giant. Keating worked in the Clinton administration and previously worked at Honeywell. 

The addition and how Keating grows his book of business will be something K Streeters watch closely. BHFS has grown its lobbying practice to one of the largest in D.C. The firm raked in more than $26.6 million during the first half of 2021.

FRONTS

MOMENTS

10 a.m.: President Joe Biden will receive his daily intelligence briefing.

11 a.m.: Biden will get a briefing on the tornado response from Homeland Security Secretary Alejandro Mayorkas, FEMA Administrator Deanna Criswell and Homeland Security Adviser Liz Sherwood-Randall.

12:30: Jen Psaki will brief.

1:15 p.m.: Biden will sign an executive order.

Week ahead: Tuesday: The Bidens, Vice President Kamala Harris and Second Gentleman Doug Emhoff will attend a DNC “holiday celebration.” Thursday: Biden will present the Medal of Honor to Sergeant First Class Alwyn C. Cashe, Sergeant First Class Christopher A. Celiz, and Master Sergeant Earl D. Plumlee. Friday: Biden will give the commencement address at South Carolina State University. 

CLIP FILE

NYT

→ “As U.S. Nears 800,000 Virus Deaths, 1 of Every 100 Older Americans Has Perished,” by Julie Bosman, Amy Harmon and Albert Sun

→ “Democrats Are Solidly Behind Biden. There’s No Consensus About a Plan B.” by Jonathan Martin and Alex Burns

→ “With Roe at Risk, Justices Explore a New Way to Question Precedents,” by Adam Liptak

→ “Now in Your Inbox: Political Misinformation,” by Maggie Astor

WaPo

→ “Kentucky officials struggle to count the dead after tornadoes: ‘We’re still finding bodies’” by Reis Thebault

→ “For Kentucky Gov. Andy Beshear, a term defined by crisis grows more calamitous,” by Dave Weigel

WSJ

→ “California’s Gavin Newsom Favors Gun Suits Modeled on Texas Abortion Law,” by Christine Mai-Duc

AP

→ “Jan. 6 panel set to vote on holding Meadows in contempt,” by Mary Clare Jalonick

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Editorial photos provided by Getty Images