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PRESENTED BY
BY JOHN BRESNAHAN, ANNA PALMER, JAKE SHERMAN AND HEATHER CAYGLE
WITH MAX COHEN AND CHRISTIAN HALL
THE TOP
Happy Wednesday morning.
Programming note: We’re very excited to head to Philadelphia later today for the House Democratic Caucus Issues Conference.
On Thursday evening from 4 p.m. to 6 p.m., Punchbowl News will host a “Cocktails and Conversation” happy hour at the Democratic retreat. This event will feature a live interview with our own Managing Editor Heather Caygle and House Democratic Caucus Chair Hakeem Jeffries. It’s part of the retreat and is only open to attendees and reporters; the whole press corps is invited. We’ll have lots of food, drinks and new amazing House-themed swag. When we say amazing, we mean it.
Questions? Ping Jake or Heather.
We’ll release the Jeffries conversation as a bonus episode of the Daily Punch, our podcast. Listen on Spotify, Apple Podcasts or wherever you listen.
Will Dems get it together at this retreat?
Usually House Democratic retreats are boring, perfunctory affairs, filled with bland food, long speeches and lawmakers itching to get home.
But let’s talk about reality for a moment. Democrats are a bit of a mess right now. And our sources tell us that they feel as if this gathering in Philadelphia is the “most consequential” retreat in recent memory.
Consider this set of facts House Democrats carry with them up I-95 to the City of Brotherly Love for their first in-person retreat in three years:
→ | 31 House Democrats have announced they’re retiring or otherwise leaving the body. |
→ | Following President Joe Biden’s State of the Union address, three House Democrats felt the need to publicly respond with their own speeches. This was an unprecedented display that took the spotlight away from Biden and only served to highlight the party’s divisions, multiple Democrats told us. |
→ | The relationship between the White House and the House Democratic leadership is frayed, and the distrust between the two ends of Pennsylvania Avenue has only deepened this week. House Democrats were ready to move on a bipartisan, bicameral Russian sanctions bill until the White House pulled the rug out from under them over the oil embargo and differences on trade policy. Speaker Nancy Pelosi is going ahead with a vote anyway – despite some misgivings from the moderate wing of the party. |
→ | While improving in some polls, Biden’s approval numbers are still in the high 30s or low 40s. Inflation is soaring, with prices increasing at a rate not seen in four decades (new inflation data is out Thursday). Gas prices are at record highs, as well. |
→ | The Build Back Better Act as envisioned by the House is dead. Senior House Democrats privately blame the Senate and White House for this disaster. But House progressives’ deal with Democratic moderates to pass the bipartisan infrastructure bill before a social spending package has been proven to be unwise at best. A lot of progressives will put it in even harsher terms. But we’ll be nice! |
→ | Democrats are struggling with basic governing responsibilities. It’s five months into the 2022 fiscal year, and they still haven’t passed an omnibus spending deal (more on this below). This isn’t all Democrats’ fault alone, of course. Republicans refused to even negotiate until BBB was clearly moribund, so they deserve a lot of blame here too. Yet Democrats, who control Congress and the White House, will celebrate when the spending bill passes, and it really just means the federal agencies are funded for less than seven months. |
Let’s be clear: Democrats won’t be able to right this ship between this evening and Friday afternoon in Philly. But Democratic Party leaders are hoping they can at least ease the intra-party tension that’s worsened as this Congress has unfolded.
Consider this: Since the mid-1990s, Congress has grown ever more impersonal. Lawmakers leave D.C. as soon as they can each week. They don’t live here, they don’t bring their families to town, and they don’t socialize or mix with their own party or, even worse, their counterparts across the aisle. This is a break from the past. While some of this may be sepia-toned, nostalgia-tinged memories, lawmakers clearly enjoyed warmer personal relationships in previous eras, and that led to a more effective Congress.
The rise of social media, coupled with bitterness of the Donald Trump era – which culminated in the bloody Jan. 6 insurrection, some of the worst political violence in decades – demonstrated the enormous depth of the partisan gulf that lawmakers now face.
The multi-year Covid-19 pandemic only exacerbated the physical and personal distance between lawmakers. Proxy voting, remote party meetings and virtual hearings means House Democrats have spent far less time in the same room with each other for the last two years than they normally would. A lot of Democrats, especially the newer members, don’t even know each other that well. And across the entire caucus, there’s a clear lack of trust. Progressives versus moderates, younger versus older, leaders versus rank-and-file – these are just some of the fault lines inside the party. Legislative and political priorities and prerogatives often don’t line up.
“The caucus lives in two different realities,” one senior Democratic aide told us. “We need to be focused on Ukraine and inflation. Anything else is a distraction.”
We caught up with House Majority Leader Steny Hoyer last night about some of these issues. Here’s what he had to say:
“I think things are going very well, John, I really do. The world is not going well. This [Ukraine] war is terrible. We have passed two major pieces of legislation, in any other Congress, would have been historic in and of themselves, in the [American Rescue Plan] and the infrastructure bill. We’ve also passed through the House two major pieces of legislation that are now sitting in the Senate: [the USICA bill], I think we’re going to adopt, and I think we can get part of Build Back Better. You’ve heard me say this before: Last year on our first 30 bills, we lost 19 votes.”
We reminded him that Democrats are leaving the House in droves.
“I think we’ll have a really good message for the American people. Now, yes, we have a lot of people retiring. Most of them in safe seats. Most of them. Not all. [In] the open seats that we have, we’re going to have to really hone down. And very frankly, it’s going to depend upon what is the atmosphere in June, July and August. … I know the polls don’t look particularly good now, but that’s happened in the past. I think we have a very, very good message to go to the American people with as to what we said we do and what we have, in fact, done. … I’m looking forward optimistically to the elections. I’m not a pie in the sky guy, as you know, but I don’t by any stretch of the imagination think our time is over.”
Here’s the schedule for the retreat. If all doesn’t go well, Democrats can look forward to Lady Bunny tonight at 9:30 p.m. and DJ Jazzy Jeff performing at 9:30 p.m. Thursday night – after the Punchbowl News event.
Also important: The White House has sent House Democrats this slideshow on deficit reduction. This is part of the Biden administration’s effort to highlight different elements of the president’s State of the Union each day this week. Today, the president will talk about passing the Bipartisan Innovation Act. On Thursday, Biden will talk about “the American Rescue Plan’s success reducing the cost of health care for the middle class and plans to cut prescription drug costs.”
PRESENTED BY CLIMATE POWER
Investing in Clean Energy is Key to Real Energy Independence
By investing in clean energy here in America, we can speed up the production of cheaper, cleaner energy, like wind and solar, that isn’t impacted by foreign supply chain disruptions or conflicts overseas.
Accelerating the production of American-made clean energy through clean energy tax credits will reduce energy bills for families, saving the average household $500 every year.
THE FUNDING FIGHT
House to vote on omnibus, 4-day CR today
Following a frantic few days of negotiations, and an abbreviated late-night (early morning?) markup by the Rules Committee, the House is moving toward a vote today on a $1.5 trillion omnibus spending package designed to keep federal agencies open through September.
The massive FY 2022 omnibus package – which was released at 1:30 a.m. – is 2,741 pages long. You can see the full text here and the House Dems’ summary here.
Included in this package is $13.6 billion in military and humanitarian aid for Ukraine and neighboring Eastern Europe countries in response to the recent Russian invasion. This funding, which has huge bipartisan support, is one of the keys to passing the omnibus today.
There’s no way that members can read this enormous bill by the time they vote on it later today, roughly 12 hours after it was released. Yet Speaker Nancy Pelosi and House Democrats are heading to a Democratic retreat in Philadelphia that kicks off this afternoon, so they’re pressing ahead with a vote as soon as possible anyway. Progressives are upset about the inclusion of huge increases in defense spending. However, they support the big increases in domestic spending won by Democratic leaders, so they’ll vote for the bill.
With government funding running out at midnight on Friday, the Rules Committee also passed a four-day continuing resolution to keep federal agencies running until March 15. This is an insurance policy which will give the Senate several more days to process the omnibus legislation. Senate Majority Leader Chuck Schumer will likely need that extra time to steer the chamber around objections from Republican senators.
In addition, the Rules Committee passed a new sanctions bill that includes a ban on importing oil and other petroleum products from Russia into the United States. While President Joe Biden has already instituted the oil ban by executive order, Pelosi believes it is important for the House to go on the record on the issue. Senate Republicans may end up blocking this measure after Democrats reneged on a deal over the issue.
Here’s that bill, which prohibits the importation of Russian crude oil, gasoline, coal, natural gas and other energy products. The restriction on imports can be waived by the president if he deems “it is in the national interest,” although that move is subject to a resolution of disapproval by Congress.
The Russia sanction bill has language calling on the U.S. Trade Representative to begin the process of seeking the Russian Federation’s suspension from the WTO. Additionally, it reauthorizes and amends the Global Magnitsky Act, which imposes sanctions on human rights violators.
Republicans complained Tuesday about House Democrats’ decision to go back on a bipartisan, bicameral deal over ending “permanent normal trade relations” with Russia and Belarus. However, the White House opposed the language and pressured Democratic leaders on the Hill to drop it. Administration officials want to make sure the United States can act in coordination with allies on economic sanctions while also giving Biden a free hand to deal with the crisis – and potential negotiations to end the conflict.
On the omnibus, the two parties eventually settled their differences by spending a lot more money. Per House Appropriations Committee Democrats, “the regular 12 appropriations bills include $730 billion in non-defense funding, a $46 billion increase over fiscal year 2021. This 6.7 percent increase in non-defense funding is the largest in four years. The bills provide $782 billion in defense funding – an increase of $42 billion, 5.6 percent, over fiscal year 2021.”
The path to get to today’s House vote on the omnibus package was long and extremely tedious. House Appropriations Committee Chair Rosa DeLauro (D-Conn.) noted during a very brief Rules Committee meeting (no Democrats but the chair, Rep. Jim McGovern of Massachusetts, even showed up in person) that the “Four Corners” – the chairs and ranking members of the House and Senate Appropriations panels – first met to discuss this package on Nov. 2. That was more than four months ago.
“I am so proud of this government funding legislation, which delivers transformative federal investments to help lower the cost of living for working families, create American jobs, and provide a lifeline for the vulnerable,” DeLauro said in a statement “During this time of great uncertainty and change, we are tackling some of our nation’s biggest challenges, including making health care more affordable, confronting the climate crisis, and protecting our national security.”
But as we noted in our PM edition, Republicans did very well on this bill. They achieved “parity” for the increases in defense and non-defense spending. They won on policy riders including the Hyde Amendment, which bars the use of federal funds for abortions. There’s also no “poison pills,” another Republican priority.
Rep. Kay Granger of Texas, top Republican on House Appropriations, praised the bill during the Rules markup. Sen. Richard Shelby (Ala.), ranking Republican on the Senate Appropriations Committee, said this: “Throughout this process, I have insisted upon dollar-for-dollar parity for defense and non-defense increases, preservation of long-standing legacy riders, and the exclusion of partisan poison pills. I am pleased that we have achieved all three goals.”
Senate Majority Leader Mitch McConnell backs the package as well, calling it a “major step forward that our national security needs.”
Our fault: We misstated the rate growth for defense and non-defense spending in the omnibus package as part of our P.M. edition last night. It is 5.6% for defense spending, and 6.7% for non-defense spending.
→ | Believe it or not, this is a real fundraising video from Nikki Haley, former U.S. ambassador to the United Nation, and Georgia Senate GOP candidate Herschel Walker. Watch it for yourself. |
PRESENTED BY CLIMATE POWER
Putin’s invasion of Ukraine and profiteering by oil and gas CEOs are to blame for higher energy prices.
We can’t drill our way to real energy independence. We must accelerate the production of cheaper, cleaner energy, like wind and solar, that isn’t impacted by conflicts overseas.
FRONTS
MOMENTS
7:30 a.m.: Vice President Kamala Harris will leave for Warsaw, Poland.
9:15 a.m.: Judge Ketanji Brown Jackson will meet with Sen. Mike Lee (R-Utah).
11 a.m: President Joe Biden will get his daily intelligence briefing.
11:30 a.m.: House Minority Leader Kevin McCarthy will hold his weekly news conference.
11:45 a.m.: Jackson will meet with Sen. Josh Hawley (R-Mo.).
1 p.m.: Jen Psaki will brief.
1:15 p.m.: Speaker Nancy Pelosi will hold her weekly news conference
2 p.m.: Biden and Commerce Secretary Gina Raimondo will meet with business leaders about the semiconductor chips manufacturing bill.
3 p.m.: Sen. Ted Cruz (R-Texas) will speak about a possible Iran nuclear deal.
4 p.m.: House Majority Leader Steny Hoyer, Assistant Speaker Katherine Clark, House Democratic Caucus Chair Hakeem Jeffries and Vice Chair Pete Aguilar will meet with reporters in Philadelphia.
6:15 p.m.: Biden will speak at the Senate Democrats’ retreat at Howard University.
8:15 p.m.: Climate Adviser Gina McCarthy, Commerce Secretary Gina Raimondo and Labor Secretary Marty Walsh will speak to Democrats at their retreat in Philadelphia.
PRESENTED BY CLIMATE POWER
Clean Energy is the Key to Real Energy Independence
CLIP FILE
NYT
→ | “Loss of Russian Oil Leaves a Void Not Easily Filled, Straining Market,” by Clifford Krauss in Houston |
“Food Companies, Long Symbols of the West in Russia, Pause Operations,” by Julie Creswell
→ | “Pentagon says Poland’s fighter jet offer is not ‘tenable,’” by Ada Petriczko |
WaPo
→ | “Inside the Jan. 6 committee’s effort to trace every dollar raised and spent based on Trump’s false election claims,” by Josh Dawsey, Jackie Alemany and Tom Hamburger |
→ | “‘Every inch of NATO’: Blinken seeks to deter any Russia thought of pushing beyond Ukraine,” by Missy Ryan in Tallinn, Estonia |
→ | “Venezuela releases at least 2 imprisoned Americans after rare trip by U.S. officials,” by Ana Vanessa Herrero and Samantha Schmidt |
WSJ
→ | “U.S. Probes Options Trade That Gained on Microsoft-Activision Deal,” by Dave Michaels and Jeffrey Trachtenberg |
AP
→ | “Air raid sirens in Ukraine capital; Russians pressure cities,” by Yuras Karmanau |
Politico
→ | “Trump’s man in North Carolina struggles in Senate primary,” by Natalie Allison |
USA Today
→ | “Harris visits Poland amid fighter jets rift; Congressional leaders reach $13B deal to aid Ukraine,” by Celina Tebor |
LA Times
→ | “Facing reelection, Newsom touts the ‘California way’ and teases gas tax rebate,” by Taryn Luna and Phil Willon |
PRESENTED BY CLIMATE POWER
Profiteering by oil and gas CEOs is to blame for higher energy prices in the United States. Putin’s invasion of Ukraine is only making things worse.
The situation we face today is a powerful reminder that an economy tied to fossil fuels is unpredictable, making America dependent on the decisions of foreign leaders and oil company CEOs while forcing families to pay more at the pump and on their energy bills.
By investing in clean energy here in America, we can speed up the production of cheaper, cleaner energy, like wind and solar, that isn’t impacted by foreign supply chain disruptions or conflicts overseas.
Russia’s invasion of Ukraine is further proof that America needs to swiftly move to a clean energy economy that will lower costs, protect our national security, and secure real energy independence.
Editorial photos provided by Getty Images
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