| | | | | |  | | By Ryan Lizza, Tara Palmeri, Eugene Daniels and Rachael Bade | Presented by |  | | | | | | |  | DRIVING THE DAY | | NYC mayor's race as of 5 a.m.:
ERIC ADAMS: 31.7%
MAYA WILEY: 22.3%
KATHRYN GARCIA: 19.5%
THE ONCE UNBEATABLE ANDREW YANG: 11.7% (Cue the knife fight: "Yang Presidential Campaign Advisers Blame Tusk Strategies For 'Crashing' His Mayoral Bid," by Hunter Walker) Adams all but declared victory, though it will take some time to sort this out because of the city's new ranked-choice system. THE BIG RIDDLE: Infrastructure talks are getting real — but time may be running out. President JOE BIDEN'S infrastructure negotiating team — STEVE RICCHETTI, LOUISA TERRELL and BRIAN DEESE — spent the day on the Hill on Tuesday in three separate meetings with a bipartisan group of 10 senators led by KYRSTEN SINEMA (D-Ariz.) and ROB PORTMAN (R-Ohio). Forgive us if it seems like Groundhog Day around here, but how to pay for $579 billion in new spending is still the big problem. On the one hand, the two sides were reported to be drifting farther apart. JOHN THUNE (S.D.), the No. 2 Senate Republican, sent reporters into a tizzy when he said the White House had retreated on backing an infrastructure bank, previously a bipartisan idea. But the flurry of meetings — coming a day after Biden met separately with Sinema and Sen. JOE MANCHIN (D-W.Va.) — also suggests a deep level of engagement and eagerness from both sides. It's no surprise there were some hiccups. Tuesday was the first time the group of 10 senators met with the White House team. Two key meetings to watch for today: Per our Laura Barrón-López and Sarah Ferris, White House negotiators — Ricchetti, Terrell, Deese, plus acting OMB Director SHALANDA YOUNG and White House Domestic Policy Council chief SUSAN RICE — will meet with Speaker NANCY PELOSI and Senate Majority Leader CHUCK SCHUMER. Later in the day, we're told, White House aides will resume their talks with the group of 10 senators. (In the morning, most of the key players will be at the late Sen. JOHN WARNER'S funeral at Washington National Cathedral, where Biden is scheduled to deliver remarks.) The puzzle of the pay-fors may never be solved. But from our reporting Tuesday night, there are two potential pots of money that remain promising: — Tax gap enforcement. We're told Republicans are not going to embrace the more onerous regulatory aspects of this Biden proposal — beefed-up reporting requirements for banks — but they are open to some stepped-up enforcement and modernization of IRS customer service if it comes with proper guardrails. The White House says spending $80 billion on this could yield $325 billion in revenue. Republicans point to a CBO study that says $40 billion in enforcement spending can net $63 billion in revenue. — Covid relief funds. Thune estimates there's some $700 billion in unspent Covid relief funds. Much of that is off limits, but Republicans have their eyes on clawing back unobligated unemployment benefits. The "G-10" is waiting to hear how flexible Biden is on this issue. — Finally, the most intriguing and least discussed proposal for funding this infrastructure deal came from Sen. BERNIE SANDERS (I-Vt.), who made a simple recommendation Tuesday: Forget all the debate about complicated pay-fors and deficit-finance the entire package. (Interest rates are low!) | | A message from the American Investment Council: This summer looks a lot better because of private equity's investments over the past year. Millions of Americans got vaccinated, many of the small businesses we know and love survived the pandemic and are thriving, and the travel sector is rebounding. Learn more at https://www.investmentcouncil.org/summer. | | | While Washington is obsessively focused on this little bipartisan side deal, Sanders is busy quietly assembling a monster $6 trillion reconciliation bill. It includes almost every major Democratic priority: the PRO Act (the top priority for labor unions), major elements of immigration reform (more on this from the L.A. Times ), Medicare expansion, prescription drug pricing reform, a partial restoration of the state and local tax deduction and most of Biden's American Jobs Plan and his American Families Plan. (See this Bloomberg piece for an excellent rundown of what Bernie is cooking up and how it compares to what Biden has proposed.) FWIW, Sen. MITT ROMNEY (R-Utah), a member of the G-10, sounds bullish: "There are a number of pay-fors that we've been able to add to the list and I think we're going to get there," he told Bloomberg. THE VIEW FROM THE WEST WING: The talks "continue, which is a good thing," a senior White House aide tells us. "And I think there is general agreement that end of the week is reasonable for figuring out whether or not there will be a deal. Close but not quite there yet." More from the WSJ's Andrew Duehren and Kristina Peterson: "Infrastructure Talks Focus on How to Pay for Bipartisan Package" Good Wednesday morning. Thanks for reading Playbook. Drop us a line and tell us how YOU would pay for the infrastructure package: Rachael Bade, Eugene Daniels, Ryan Lizza, Tara Palmeri. FIRST IN PLAYBOOK: Former Sen. CORY GARDNER (R-Colo.) has joined the board of advisors at Michael Best Strategies, the lobbying shop where REINCE PRIEBUS is president and STEVE ISRAEL sits on the board of advisers. Gardner will "collaborate with the firm on business development and public policy, while providing strategic advice and counsel to clients," according to a release on their latest hire. 'CRITICAL' POLL RESULTS — With critical race theory — the idea that racism is embedded throughout society and institutions, not just the acts of individuals — grabbing headlines, the latest POLITICO/Morning Consult weekly tested what Americans think. Lots of people aren't tuned in to the controversy, but those who are tend to break down along partisan lines. Some 54% of Republicans think critical race theory negatively affects society, vs. 13% of Democrats who believe that. Forty-eight percent of Democrats said they either didn't know or didn't have an opinion; a third of Republicans were in the dark. Those figures suggest that the issue has struck a chord among conservatives in the culture wars. More than six in 10 Republicans (63%) oppose critical race theory being taught in K-12 schools, vs. 13% of Democrats and 38% of independents in opposition. Toplines … Crosstabs WEDNESDAY LISTEN — RACHAEL is the guest on today's "Dispatch" episode, discussing the cases for and against the filibuster in the wake of the voting rights bill going down Tuesday. Listen and subscribe | | | | A message from the American Investment Council:   This summer looks a lot better because of private equity's investments over the past year. Learn more about private equity's investments at https://www.investmentcouncil.org/summer. | | | BIDEN'S WEDNESDAY: — 9:50 a.m.: The president and VP KAMALA HARRIS will receive the President's Daily Brief. — 11 a.m.: Biden and first lady JILL BIDEN will attend the funeral ceremony for Warner at the Washington National Cathedral, where the president will deliver remarks. — 12:45 p.m.: The president and VP will have lunch together. — 2:15 p.m.: Biden and A.G. MERRICK GARLAND will meet with stakeholders to discuss ways the Biden administration is acting to keep cities and neighborhoods safe. — 3:30 p.m.: Biden and Garland will deliver remarks on the administration's gun crime prevention strategy in the State Dining Room. Press secretary JEN PSAKI will brief at 12:45 p.m. THE HOUSE will meet at 10 a.m., with first votes expected between 1:15 p.m. and 2:30 p.m. and last votes between 4:30 p.m. and 6 p.m. Defense Secretary LLOYD AUSTIN and Chair of the Joint Chiefs of Staff Gen. MARK MILLEY will testify before the Armed Services Committee at 10 a.m. HUD Secretary MARCIA FUDGE will testify before the Budget Committee at 10 a.m. Interior Secretary DEB HAALAND will testify before the Natural Resources Committee at 10 a.m. NASA Administrator BILL NELSON will testify before the Science Committee at 10 a.m. FEMA Administrator DEANNE CRISWELL will testify before a Transportation subcommittee at 2 p.m. THE SENATE is in. Testifying before Appropriations subcommittees today: Energy Secretary JENNIFER GRANHOLM at 10 a.m., VA Secretary DENIS MCDONOUGH at 10 a.m., Treasury Secretary JANET YELLEN at 2 p.m. and FBI Director CHRISTOPHER WRAY at 2 p.m. | | | | "THE WOMEN REOPENING AMERICA" – A THURSDAY CONVERSATION: With more than 100 million people vaccinated against Covid-19, a strengthening economy and relaxed Covid restrictions on businesses and public gatherings, America is on a path to fully reopening. What policies and systemic changes can help women recover from the disproportionate impact of the pandemic? Join Thursday for a "Women Rule" conversation with leading women who are playing a pivotal role in determining what normal will look like for business, politics, schools and the workplace. REGISTER HERE. | | | | | | | PLAYBOOK READS | | | 
PHOTO OF THE DAY: White House officials and senators from both parties meet behind closed doors Tuesday for infrastructure talks. | Anna Moneymaker/Getty Images | ANTI-CRIME DAY FOR BIDEN SETTING THE STAGE — "'Staggering': Biden breaks from agenda to grapple with bloodshed plaguing big cities," by Natasha Korecki and Chris Cadelago: "On Tuesday, the Justice Department announced five strike forces that will target the flow of illegal firearms into places like New York City, Chicago, Los Angeles, San Francisco and Washington, D.C. While Chicago, for example, has its own gun control measures in place, it has historically contended with the illegal trafficking of weapons from nearby Indiana, as well as southern states. "The DOJ announcement was in advance of Biden's speech Wednesday on the rise of shootings and other violent crime. The president is expected to unveil additional measures targeting guns and crime, including giving cities the ability to tap funding from his American Rescue Plan to help combat violence, imposing a new zero tolerance policy toward gun dealers who break the law, and investing in community policing, among other initiatives, according to a senior administration official." VOTING RIGHTS BILL GOES DOWN IN FLAMES As expected, Republicans filibustered S. 1 on Tuesday, dashing Democratic hopes for a muscular response to GOP voting crackdowns across the country. And there's no apparent Plan B. Our Senate duo of Burgess Everett and Marianne LeVine has a smart look at just how lost Democrats are on an issue the liberal wing of the party is demanding action on. "After months of build-up, Democrats are boxed in on their party's signature election reform plan. And there's no apparent escape route. Senate Republicans blocked Democrats' sweeping ethics and elections legislation on Tuesday, a filibuster that many in President Joe Biden's party hoped would turbocharge the demise of the chamber's 60-vote threshold for most bills. But Democratic moderates' support of the filibuster has only hardened in recent days … "It gets worse for Biden's party: Now that the GOP has rejected debating the legislation that would overhaul federal elections, Democrats are without a new strategy to show party activists some momentum before the 2022 midterms. At the moment, the party doesn't have a backup plan on elections and Democratic senators acknowledged their internal maneuvering over the filibuster has only begun after months of dominating their time in control of Washington." THE SPEAKER SPEAKS: "Pelosi vows voting rights bills 'will pass this year,' despite Republican stonewall," by TheGrio's April Ryan — Related op-ed: "The Really Big Fight on Voting Rights Is Just Around the Corner," by voting rights expert Richard H. Pildes in the NYT MORE CONGRESS IF AT FIRST YOU DON'T SUCCEED … "Pelosi to Decide Whether to Create Committee to Probe Jan. 6 Capitol Riot," WSJ: "A person familiar with her remarks previously said Mrs. Pelosi (D., Calif.) had told the House Democratic Steering and Policy Committee she had decided to create a select committee, something Mrs. Pelosi denied after that meeting. Two other people familiar with the meeting said the speaker had signaled she was headed toward creating a select committee, but that Mrs. Pelosi had stressed that she would make a formal announcement later in the week." | | | | A message from the American Investment Council:   This summer looks a lot better because of private equity's investments over the past year. | | | POLITICS CORNER SCOOP: "Tom Perez preps Maryland governor announcement," by Ruby Cramer, Sarah Ferris and Zach Montellaro: " TOM PEREZ, the former chairman of the Democratic National Committee and former Labor secretary under BARACK OBAMA, is expected to launch a bid for Maryland governor as early as Wednesday, two sources with knowledge of his campaign told POLITICO. The gubernatorial election in 2022 will be an open contest because Republican Gov. LARRY HOGAN is term-limited." It's official now: Here's the launch video BACK TO WORK — "Texas Gov. Abbott calls special session, setting stage for GOP to revive voting restrictions," by NBC's Jane Timm: "The governor's office did not confirm that the July 8 session would include election legislation, but [Texas Gov. GREG] ABBOTT had previously said he planned to call two special sessions: one focused on elections and bail reform, followed by a second session in September or October focused on redistricting and allocating federal coronavirus funds throughout the state." K STREET FILES — "Tech Giants, Fearful of Proposals to Curb Them, Blitz Washington With Lobbying," by NYT's Cecilia Kang, David McCabe and Ken Vogel: "In the days after lawmakers introduced legislation that could break the dominance of tech companies, Apple's chief executive, TIM COOK, called Speaker Nancy Pelosi and other members of Congress to deliver a warning. ... "Executives, lobbyists, and more than a dozen think tanks and advocacy groups paid by tech companies have swarmed Capitol offices, called and emailed lawmakers and their staff members, and written letters arguing there will be dire consequences for the industry and the country if the ideas become law. … The companies, which have long faced accusations of holding too much power, are now scrambling to find their footing with Democrats in control of Congress and the White House." WHAT THE E-RING IS READING PAGING GILLIBRAND — "Austin backs change in military sex assault prosecution," by AP's Lolita Baldor: "In a statement, obtained by The Associated Press, Austin said he supports taking those sexual assault and related crimes away from the chain of command, and let independent military lawyers handle them. The Pentagon has long resisted such a change, but Austin and other senior leaders are slowly acknowledging that the military has failed to make progress against sexual assault, and some changes are needed. "Austin pledged to work with Congress to make the changes , saying they will give the department 'real opportunities to finally end the scourge of sexual assault and sexual harassment in the military.' His public support for the shift has been eagerly awaited, sending a strong signal to the military and boosting momentum for the change." BUT, BUT, BUT … "Joint Chiefs Warn Against Bill Overhauling Military Justice System," by WSJ's Nancy Youssef and Lindsay Wise: "The military leaders, members of the Joint Chiefs of Staff, provided their arguments to Sen. JIM INHOFE … The military chiefs argued taking all serious crimes out of the chain of command would undermine military leadership and potentially lead to unintended results, including a possible erosion of prevention efforts. … "While military service leaders are required to answer questions from legislators, it is unusual for military leaders to offer such detailed arguments against pending legislation. … Some service chiefs said that removing all serious cases would erode troops' trust in their commanders, imposing a solution that goes beyond the scope of the problem. … The service chiefs wrote the letters in May in response to questions from Mr. Inhofe, but the letters haven't been publicly released until now." DISTURBING — "Saudi Operatives Who Killed Khashoggi Received Paramilitary Training in U.S.," by NYT's Mark Mazzetti, Julian Barnes and Michael LaForgia | | | | SUBSCRIBE TO "THE RECAST" TODAY: Power is shifting in Washington and in communities across the country. More people are demanding a seat at the table, insisting that politics is personal and not all policy is equitable. The Recast is a twice-weekly newsletter that explores the changing power dynamics in Washington and breaks down how race and identity are recasting politics and policy in America. Get fresh insights, scoops and dispatches on this crucial intersection from across the country and hear critical new voices that challenge business as usual. Don't miss out, SUBSCRIBE . Thank you to our sponsor, Intel. | | | | | | | PLAYBOOKERS | | THAT '90s PARTY — It was a flashback to the '90s at Molly Jong-Fast's Upper East Side home Tuesday night. Supermodel Paulina Porizkova, Monica Lewinsky and James Frey mingled with Jong-Fast, who's host of the new podcast "The New Abnormal" and also happens to be writing a book about the '90s — how its excesses brought us to where we are today. Lewinsky, a producer on Ryan Murphy's "Impeachment: American Crime Story," remarked that most of the books on the Clinton impeachment are written by men. Now that she's finally being embraced on her own terms, Lewinsky sees a future producing stories through the perspective of the marginalized. Also spotted: Noah Shachtman, Jon Allen, Elizabeth Spiers, Ryan Heath, Zach Bishop, Nick Gillespie, Kevin Doughten, Jesse Cannon and Davis Richardson. SPOTTED at an NYC election night gathering hosted in D.C. by House Democratic Caucus Chair Hakeem Jeffries (D-N.Y.), a prominent Maya Wiley backer: Caucus Vice Chair Pete Aguilar, DCCC Chair Sean Patrick Maloney (N.Y.), Reps. Brendan Boyle (D-Pa.), Yvette Clarke (D-N.Y.), Mondaire Jones (D-N.Y.), Carolyn Maloney (D-N.Y.) and Joe Morelle (D-N.Y.), Del. Stacey Plaskett (D-U.S. Virgin Islands), David Bond, Regina Eberhardt, Cedric Grant, Jennifer Haas, Brian Lemek, Ann Miller, Nana Nyanin, Dontai Smalls, Arshi Siddiqui and Hasan Solomon. SPOTTED at a party hosted at the home of Swanee Hunt for Peter Canellos' new book, "The Great Dissenter: The Story of John Marshall Harlan, America's Judicial Hero" ($32.50): Adam Green, Alicia Daugherty, Angélique Gakoko Pitteloud, Aviva Kempner, Ben Schreckinger, Carrie Budoff Brown, Claudia Gonzalez, Dan Diamond, Elizabeth Ralph, Indira Lakshmanan, Jonquilyn Hill, LaNita King, Patrick Steel, Linnaea Honl-Stuenkel, Margy Slattery, Matt Kaminski, Nadine Hoffman, Rev. Rob Schenck, Roberta Baskin, Blake Hounshell, Toby Stock, Tory Gavito and Vic and Lisa Wolski. IN MEMORIAM — The Hill's Steve Clemons (@SCClemons): "Very sad news that @thehill and I lost an excellent and hardworking colleague Thomas Moore. I will miss him. Life is fragile. Hug your loved ones. Will miss you Thomas. RIP." MEDIAWATCH — Katherine Tully-McManus is joining POLITICO to author Huddle, our must-read morning newsletter on all things Congress. Tully-McManus, a 10-year veteran at CQ-Roll Call, knows the Capitol "complex like the back of her hand" and is "someone who [can] balance humor with deep experience understanding the rhythms of Congress," congressional editor Elana Schor writes in an announcement, adding: "Stay tuned for more exciting announcements about Huddle's growth…" Read the full announcement here MODEST PAD ON THE MARKET — "Dianne Feinstein's $41M Tahoe Compound Up for Sale," Realtor.com: "A rustic retreat in California's vacation mecca of Lake Tahoe linked to Sen. Dianne Feinstein and her investment banker husband, Richard C. Blum, has surfaced on the market for $41 million. The property is owned by an LLC tied to Blum's investment management firm, Blum Capital. "The waterfront compound briefly tested the market in October 2020 with a $46 million asking price. … Located on Lake Tahoe's picturesque West Shore, the spread was last renovated in the 1990s. It offers 278 feet of white sand beach, along with a 172-foot pier extending into the water, plus a boatlift and two buoys. The three homes on the coveted piece of property encompass 10,343 square feet, seven bedrooms, and seven bathrooms." STAFFING UP — The White House announced a few new nominations: David Uhlmann as assistant EPA administrator for enforcement and compliance assurance, Celeste Wallander as assistant Defense secretary for international security affairs and David Prouty as an NLRB member. TRANSITIONS — Building Back Together has added a slate of new hires: Berenice Murguia will be COO, Bart Rutherford will be state partnerships director, Mariana Castro will be deputy digital director, Angela Herrera will be comms and digital associate, and Trent Allen will be research manager. … … Mike McCollum and Alyssa Miller are joining the Progressive Turnout Project. McCollum is federal political director and most recently was campaign manager for Rep. Dan Kildee (D-Mich.). Miller is legislative political director and most recently was associate director of campaigns at NARAL. … Jack Kalavritinos is launching JK Strategies. He most recently was a senior adviser at APCO Worldwide, and is a Trump HHS and transition alum. HAPPY BIRTHDAY: Justice Clarence Thomas … Chasten Buttigieg … WaPo's Philip Bump … Kaelan Dorr of the America First Policy Institute … Aaron Cutler of Hogan Lovells … Paul Tewes … Greg Hale … Facebook's Amber Moon … Robert Palladino … J.P. Fielder … Robert Kaplan of CNAS and Eurasia Group … Judy Lemons … Steven Cheung of Solgence … Niskanen Center's Louisa Tavlas Atkinson … POLITICO's Usha Sahay, Lauren Rutt, Ryan Kohl and Daniel Han … Nick Weinstein ... Atanu Chakravarty ... Bradley Engle ... Harbinger Strategies' Steven Stombres … Joe Duffy ... Emma Whitestone of Blueprint Interactive ... Brian Pomper ... Christopher Barnard of the American Conservation Coalition … AU's Sylvia Burwell … former Reps. Baron Hill (D-Ind.), Bob Dold (R-Ill.) and Cresent Hardy (R-Nev.) … Lisa Einstein (3-0) Send Playbookers tips to playbook@politico.com . Playbook couldn't happen without our editor Mike Zapler, deputy editor Zack Stanton and producers Allie Bice, Eli Okun and Garrett Ross. | | A message from the American Investment Council: This summer looks a lot better because of private equity's investments over the past year. According to the Wall Street Journal, "private-equity portfolio companies have been involved in nearly every step" of getting people vaccinated against COVID-19. A new report from EY shows that the majority of private equity investment in 2020 went to small businesses. They also helped many of the businesses we know and love – like Baskin Robbins, LegoLand, and BlackRock Coffee – get to the other side of the pandemic poised for new growth and job creation. And the travel industry is rebounding, thanks to private equity investment in companies like Airbnb, RVShare, and Expedia. This year, we're celebrating summer because of private equity's investments in our families and communities. Learn more at https://www.investmentcouncil.org/summer. | | | | | | | Follow us on Twitter | | | | Subscribe to the POLITICO Playbook family Playbook | Playbook PM | California Playbook | Florida Playbook | Illinois Playbook | Massachusetts Playbook | New Jersey Playbook | New York Playbook | Brussels Playbook | London Playbook View all our political and policy newsletters | | Follow us | | | | |
