Playbook PM: Is the Capitol ready?

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May 06, 2020 View in browser
 
POLITICO Playbook PM

By Jake Sherman, Anna Palmer, Garrett Ross and Eli Okun

Presented by

HAPPY WEDNESDAY from the United States Capitol, which is slowly and creakily coming to life with a series of hearings this week, plans for blockbuster hearings next week and the early seeds of another coronavirus package being planted.

BUT IT'S HARD TO ESCAPE THE FACT that the Capitol seems exceedingly unprepared -- or ill suited -- for this moment, and the new era we are entering.

-- FIRST, AND PERHAPS MOST ALARMINGLY: SOME CAPITOL POLICE OFFICERS were without masks. Some of the police officers outside were without masks, and others inside were barefaced as well.

-- SEVERAL LAWMAKERS had no masks on, including 86-year-old Sen. DIANNE FEINSTEIN (D-Calif.) and 42-year-old Sen. TOM COTTON (R-Ark.).

-- THE SECURITY CHECKPOINTS are operating as usual -- mags, bag X-ray machines and no barriers. On the House side of the Capitol -- the south-side entrance -- officers and employees were discussing how to fit those bag screening areas with new barriers.

-- THE CAPITOL does have Covid-19 testing capability, but the results take several days to come back, sources said. We're starting to hear louder complaints about the bipartisan leadership's decision to not to accept rapid tests. First was Sen. LAMAR ALEXANDER (R-Tenn.). Then Sen. ROY BLUNT (R-Mo.) told WaPo's PAUL KANE today that "if you're going to bring people in here from all over the country and send them back out to 535 different places in America, that it's totally reasonable to have tests not just to protect us, but to protect all the other people that are involved in that travel. …

"[W]E SHOULD FIND A WAY TO test members and staff and that it is not taking resources away from other people but instead it's dealing with a group of people that uniquely come together and spread out all over the country in a way that tries to be respectful to other people's health care needs." Both BLUNT and ALEXANDER are close allies of Senate Majority Leader MITCH MCCONNELL.

-- WITH THE HOUSE CONSIDERING returning next week, lawmakers are still unclear about whether they should be sleeping in their offices.

-- YOU MAY TAKE IT FOR GRANTED MOST DAYS, but in times like this it's quite noticeable that it's nearly impossible to move around the Capitol without touching doorknobs, elevator buttons and railings.

YES, THE CAPITOL has taken precautions: There are social-distancing stickers, most senators are wearing masks, and hearings are adapting to allow space between participants and even testimony from afar.

BUT there are still many issues that need to be worked out if we're going to be living with this virus for the foreseeable future.

WHAT'S NEXT FOR THE PPP … Senate Majority Whip JOHN THUNE (R-S.D.) in the Capitol today: "I know that our members are very interested in seeing [the Paycheck Protection Program] succeed. The question about whether or not [it] has enough funding now, and then whether or not it needs to be extended at the end of the eight weeks, is also a question that we're kind of grappling with right now, but I don't know that this point we have a clear answer to that."

-- ON STATE AND LOCAL AID: "I think most of us feel more comfortable on the ground of giving states flexibility with what's already been appropriated rather than, you know, another trillion dollars, which is what [Speaker Nancy] Pelosi's asking for -- without knowing what the need is really."

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THE TASK FORCE IS DEAD. LONG LIVE THE TASK FORCE … @realDonaldTrump at 9:06 a.m.: "[T]he Task Force will continue on indefinitely with its focus on SAFETY & OPENING UP OUR COUNTRY AGAIN. We may add or subtract people ...." "....to it, as appropriate. The Task Force will also be very focused on Vaccines & Therapeutics. Thank you!"

DEVASTATING NUMBERS … "Private payrolls lose 20.2 million jobs in April, worst drop in ADP report history," by WaPo's Taylor Telford: "The month's job losses were double the amount of jobs lost in the Great Recession … Despite the jaw-dropping number, these losses do not fully represent the economic carnage of the pandemic, ADP said. The report only uses data through the 12th of the month, in keeping with the Bureau of Labor Statistics. More than 8 million Americans filed for unemployment in the weeks that followed." WaPo

NEW … SECRETARY OF STATE MIKE POMPEO punted on BARAK RAVID'S scoop that he's going to Israel next week. But he said there will be an announcement on travel coming soon.

H.R. MCMASTER has joined the board of ZOOM. The release

JOCKEYING FOR THE NEXT BILL— "A massive drop in car sales sparks new push in Congress to aid the auto industry," by WaPo's Tony Romm: "With consumers spending less, and factories nationwide shuttered or severely hamstrung, Democrats and Republicans largely representing the hard-hit, auto heavy-Midwest are leading an early push to persuade their colleagues to help manufacturers and suppliers as part of a future pandemic relief package. Absent that assistance, they warn that massive losses could leave workers unemployed and stall any economic recovery." WaPo

-- WSJ'S RICH RUBIN: "Stimulus Bill's Business Tax Break Gets a Second Look From Democrats": "Republican-sponsored provisions from the March stimulus law let companies offset their losses against previously taxed profits and get quick refunds. Republicans said the provisions would offer much-needed relief to businesses hurt by the pandemic.

"But Democrats now argue that Congress was too generous when it gave tax breaks for losses incurred before the outbreak and that some of the new rules disproportionately benefit high-income investors and business owners. … [Sen. Sheldon] Whitehouse introduced a proposal with Rep. Lloyd Doggett (D., Texas) to pare back those changes, and their plan has support from dozens of House members and almost half of Democratic senators." WSJ

SWING-STATE ECONOMY -- "General Motors the Only Detroit Auto Maker to Post a Profit," by WSJ's Mike Colias … AP: "With factories dark, GM profit slumps 88%; 2Q likely worse," by Tom Krisher

 

POLITICO Magazine Justice Reform: The Decarceration Issue, presented by Verizon: Over the past decade, the long-standing challenge of criminal-justice reform has emerged under the spotlight with a new twist: Both Republicans and Democrats are on board. But if both parties want to lower the incarceration rate, why are our jail and prison populations still so high? The latest series from POLITICO Magazine works to answer this important question and take a deeper look into what it will take to make progress in the policy and politics of justice reform. READ THE FULL ISSUE.

 
 

MORE BLUE FLAME FALLOUT -- "Justice Department investigates Blue Flame Medical after claims it failed to provide masks to Maryland, California," by WaPo's Tom Hamburger and Juliet Eilperin: "The Justice Department has opened a criminal investigation in to Blue Flame Medical, a firm created by two well-connected Republican operatives who started selling covid-19 supplies this spring as the virus spread across the country.

"Prosecutors are focused on at least two troubled contracts the firm had signed for medical masks and other equipment with Maryland and California, according to two individuals familiar with the matter who spoke on the condition of anonymity due to the sensitive nature of the matter. Both states ultimately cancelled their contracts with the company.

"An attorney for Blue Flame, Ethan Bearman, has said the firm acted in good faith with the states. He declined comment about the DOJ investigation." WaPo

-- THE BACKSTORY: "California wires mask dealer half a billion dollars, then claws it back," by CalMatters' Laurel Rosenhall: "On March 26, as the coronavirus pandemic was mounting and governors across America scrambled to secure medical supplies, the state of California wired almost a half-billion dollars to a company that had been in business for just three days.

"The recipient: Blue Flame Medical LLC, a Delaware-based company headed by two Republican operatives who jumped into the medical supply business on March 23. The pair — Mike Gula from Washington, D.C., and John Thomas of Southern California — had vowed, in their words, to help 'fight Covid-19 with the industry's broadest product selection from hundreds of suppliers.'

"Within hours of the enormous wire transfer, the deal was dead and California was clawing its money back — $456.9 million, nearly half of what the Legislature had allocated for the state's pandemic response. The payment to Blue Flame and cancellation of the deal six hours later were revealed in copies of checks, wire transfer receipts and emails obtained by CalMatters through a public records request."

BEYOND THE BELTWAY … WSJ: "In Nebraska, a City With Many Essential Workers Charts Its Own Way to Fight Coronavirus," by Erin Ailworth in Grand Island, Neb.: "Nebraska is one of five states that didn't issue a statewide stay-at-home order. Instead, it issued guidelines for businesses and placed limits on gatherings on a county-by-county basis, and urged people to practice social distancing. GOP Gov. Pete Ricketts started easing some of those restrictions this week in most of the state's counties.

"That doesn't include Hall County, where Grand Island is located and where regional health officials anticipate the infection rate will get worse. … Nearby Iowa, the Dakotas and Arkansas have also resisted statewide stay-at-home orders, and are even moving to reopen some businesses that had previously been closed. Those five states have three times the rate of food manufacturing workers as the rest of the country, according to a Wall Street Journal analysis of federal labor data." WSJ

CLICKER -- NYT: "The Future of Travel: How the industry will change after the pandemic."

 

JOIN TOMORROW - A WOMEN RULE VIRTUAL INTERVIEW WITH MELINDA GATES: As the coronavirus pandemic continues to devastate communities around the world, women are disproportionately affected. Join Women Rule Editorial Director Anna Palmer tomorrow at 4 p.m. EDT for a virtual conversation with Melinda Gates, co-chair of The Gates Foundation, to discuss the ramifications of this global crisis on gender equality, her thoughts on the need to overhaul the caregiving system and how The Gates Foundation is applying the lessons learned over the past 20 years to tackle Covid-19. Have questions? Submit yours by tweeting it to @POLITICOLive using #AskPOLITICO. REGISTER HERE.

 
 

SCOTUS WATCH -- "Supreme Court questions Trump's rollback of birth control coverage," by Susannah Luthi: "Supreme Court justices on Wednesday expressed skepticism that the Trump administration can broadly allow employers to deny workers free birth control coverage, in a case that could inflame the nation's culture wars ahead of the presidential election.

"The court's conservative majority was expected to side with the administration's weakening of the contraceptive coverage requirement under Obamacare. However, Chief Justice John Roberts joined some of his liberal colleagues in questioning whether President Donald Trump's rollback of the policy went too far." POLITICO

-- NBC: "The problem with Biden's pledge of a black woman Supreme Court justice," by Sahil Kapur: "Supreme Court justices are usually elevated from a federal appeals court. Eleven of the last 12 confirmed justices were plucked from an appellate court … Only five black women are currently serving on U.S. appeals courts, and all of them will be 68 or older this year …

"There are only nine Democratic-appointed black women on the federal bench younger than 55 this year. All are district court judges picked by President Barack Obama. The youngest is Leslie Abrams Gardner, 45, the sister of Biden vice presidential contender Stacey Abrams. Another name that stands out is Ketanji Brown Jackson, 49 … Demand Justice has floated outside-the-box prospects on its short list." NBC

MONEY, MONEY, MONEY -- "Loeffler Got Lucrative Parting Gift From Public Company en Route to the Senate," by NYT's Nick Fandos and David Enrich: "[Kelly] Loeffler, who was appointed to the Senate in December and is now in a competitive race to hold her seat, appears to have received stock and other awards worth more than $9 million from [her old employer], Intercontinental Exchange … The additional compensation came in the form of shares, stock options and other instruments that Ms. Loeffler had previously been granted but was poised to forfeit by leaving the company. Intercontinental Exchange altered the terms of the awards, allowing her to keep them …

"The generous dispensations are not illegal or against any congressional rule, but they are certain to feed questions about how the Senate's newest and wealthiest member has handled her finances, an issue that has emerged as a potential risk in her campaign. They add an important asterisk to Ms. Loeffler's frequent boasts that she sacrificed huge sums of money to serve her state. They are also notable in part because she is married to Intercontinental Exchange's chief executive, Jeffrey C. Sprecher." NYT

THE TRUMP ADMINISTRATION -- "DeVos unveils rule for sexual misconduct complaints in schools," by Bianca Quilantan and Juan Perez Jr.: "Schools and colleges face a major overhaul of how they must handle allegations of sexual harassment and assault after Education Secretary Betsy DeVos on Wednesday rebuffed a push to delay final regulations until the national coronavirus emergency is over.

"One of the biggest changes for colleges is a requirement that they respond to complaints with courtroom-like hearings where representatives for the accused and the alleged victim can call witnesses and challenge their credibility. The hearings, which can occur live or virtually, will be optional for K-12 schools." POLITICO

THE NEXT GENERATION -- "Trump Pushes Young Republicans Away. Abortion Pulls Them Back," by NYT's Maggie Astor: "Like millennials, who are now in their mid-20s to 30s, members of Generation Z — born after 1996 — tend to lean left. But there are still plenty of young Republicans, and the generational divide that is so apparent between younger and older Democrats is no less present on the other side of the aisle. It's just less visible. …

"Even as young Republicans often accept the science of climate change and support L.G.B.T. rights, abortion remains a powerful force pulling them toward the Republican Party — and toward President Trump, whom many of them dislike. … Most of those interviewed said they were economically conservative, too, and several emphasized their support for Republican immigration policies and gun rights. But … many young Republicans said, they would consider crossing the aisle in this election if not for abortion." NYT

TRANSITIONS -- Nathalie Rayes has been named president and CEO of the Latino Victory Project. She previously was VP of public affairs for Grupo Salinas in the U.S. … Christine Ciccone has started in the office of DHS' chief financial officer. She previously was in DHS' office of legislative affairs, and is a State and Bush White House alum. … Sharon Loeb has been appointed chief marketing officer at Ellucian. She most recently was EVP and chief marketing officer at Cengage Learning.

 

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