POLITICO Playbook: Inside the coronavirus relief talks

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Jul 22, 2020 View in browser
 
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DRIVING THE DAY

AS OF NOW, REPUBLICANS AND DEMOCRATS aren't saying much about the coronavirus relief negotiations. But here's what some people involved told us privately Tuesday:

-- "THE TWO PARTIES ARE SO FAR APART that it is extremely difficult to envision getting any kind of compromise by the end of July."

-- ANOTHER SOURCE involved in the talks put it this way: 0% chance there will be a bill passed by the end of July, 40% chance there is a bill by mid-August.

-- A THIRD SOURCE suggested that Republicans are irreparably split, and they'll never be able to find unity in their fractured conference.

EVERYTHING SAID DURING A CONGRESSIONAL NEGOTIATION is posturing, in some way, shape or form. Each side is trying to gain leverage over the other by talking tough, saber-rattling and generally trying to throw the other side back on its heels.

BUT AFTER TWO DAYS of back-and-forth negotiation, it seems evident that the effort to craft and pass a Covid relief bill not only will slip into August, but could also easily subsume the first two weeks of next month. The two sides are miles apart on issues large and small, and neither side has an obvious incentive to cave or relent. Internally, both Republicans and Democrats have divisions -- the GOP more than Dems -- and those remain unresolved.

HERE'S ONE ANECDOTE THAT HELPS ILLUSTRATE THE DISCONNECT: On Tuesday afternoon, Speaker NANCY PELOSI hosted Senate Minority Leader CHUCK SCHUMER, Treasury Secretary STEVEN MNUCHIN and White House chief of staff MARK MEADOWS in her office suite for a meeting. This was meant to be a touch-gloves moment for the two sides, which will be at loggerheads for the next few weeks. Internally, in the Capitol, the move was seen as risky by some Republicans. Why would the administration meet with PELOSI before Senate Republicans put out their bill?

BUT, REGARDLESS of the concerns, they headed to PELOSI'S quarters for the meeting. SCHUMER entered through the main entrance, walking through a clutch of reporters to remind us that the Republicans were in "shambles." MEADOWS said little on his way in.

WHEN THEY GOT TO THE TABLE -- attendance was light, there were fewer than a dozen present -- Republicans were ticking off their priorities, and noting that they had come to the Democrats' side on several issues. THE ADMINISTRATION and Senate Republicans were willing to increase money for schools to $105 BILLION, which they noted, was $5 BILLION more than Democrats had in their HEROES Act back in May.

PELOSI AND SCHUMER immediately interjected that no, they needed way more than that for schools -- their number by now was closer to $400 BILLION, which reflected an updated total from the Senate Democrats' bill. Democrats argue Republicans have dawdled for more than two months, so the need for money for schools has ballooned. Republicans say that Democrats were already looking for more cash. Both sides saw this as an illustration of just how far apart they are at the moment.

PELOSI AND SCHUMER emerged from that late-afternoon session with MEADOWS and MNUCHIN to say that Republicans are in disarray -- not totally wrong, but not quite right either -- and they would wait until the GOP put out their bill to begin negotiations.

SENATE REPUBLICANS EXPECT to put out their legislation today or early Thursday, and Senate Majority Leader MITCH MCCONNELL warned that it will have most of his conference on board, but perhaps not all of it. He repeatedly said Tuesday that Democrats are not irrelevant in this process -- meaning the legislation will obviously be a negotiated product, like most things in the Senate.

YOU SHOULD READJUST YOUR THINKING as to when this bill will get done. The goal is not to get a bill passed by the end of next week -- as MNUCHIN is running around the Hill suggesting. The goal is to get a bill by some point in August, and even that will be a hard-fought battle.

TRUMP ADMINISTRATION NEGOTIATORS expect to be in the Capitol this afternoon. … HOW IT'S PLAYING: POLITICO NYT WAPO

Good Wednesday morning.

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SIREN … JAKE SHERMAN and JOHN BRESNAHAN: "Matt Gaetz appears to run afoul of House ethics rules": "Florida Rep. Matt Gaetz has privately engaged in several spending practices in his nearly four years in office that appear to be in conflict with the House's ethics rules, a POLITICO investigation has found.

"Gaetz, a close ally of President Donald Trump from the Florida Panhandle, improperly sent tens of thousands of taxpayer dollars to a limited liability company linked to a speech-writing consultant who was ousted from the Trump administration, in direct conflict with House rules.

"In another possible violation, a private company installed a television studio in his father's home in Niceville, Fla., which Gaetz uses when he appears on television.

"Taxpayers foot the bill to rent the television camera, and the private company that built the studio — which Gaetz refuses to identify — takes a fee each time he appears on air, his office said. It's unclear how much it cost the private company to construct the studio.

"This may run afoul of the House gift rule, which prohibits any lawmaker, aide, and their family members from accepting gifts worth more than $50. The official definition of a gift is very broad and covers virtually any good or service with monetary value.

"Gaetz's office denies wrongdoing in both cases. Gaetz's aides said the House Ethics Committee approved both arrangements but declined to produce any evidence that that was the case. His latest actions suggest a broader pattern by the second-term lawmaker of pushing the bounds of — if not outright defying — restrictions intended to guard against corruption and conflicts of interest." POLITICO

-- IT TOOK GAETZ weeks upon weeks to respond to these instances, and even then, he was circumspect. In our time covering Congress, these are very unusual practices.

BREAKING OVERNIGHT -- "China Says U.S. Ordered It to Close Houston Consulate," by WSJ's Chun Han Wong in Hong Kong: "China said the U.S. ordered the abrupt closure of its consulate in Houston, a dramatic escalation in bilateral tensions that Beijing condemned as outrageous and unprecedented.

"Washington's demand, issued Tuesday, marked 'a political provocation unilaterally launched by the U.S.,' Chinese Foreign Ministry spokesman Wang Wenbin said Wednesday at a routine briefing in Beijing. 'China urges the U.S. to immediately rescind its erroneous decision, otherwise China will undertake legitimate and necessary responses.'

"Morgan Ortagus, a spokeswoman for the State Department, said Washington ordered the closure of the Chinese consulate in Houston 'in order to protect American intellectual property' and the private information of U.S. citizens." WSJ

-- KPRC 2: "Houston fire and police respond to reports of documents being burned at Consulate General of China"

FRONTS: NYT, with a terrific story on TRUMP pressuring his ambassador in London for the British open N.Y. POST WSJ

THE BRIEFINGS ARE BACK … GABBY ORR: "Staring down defeat, Trump attempts a coronavirus reset": "A month ago, he insisted the novel coronavirus was 'dying out' in the U.S. As the pandemic overwhelmed huge swaths of the nation, he maintained the threat was 'fading away.' Health officials across the nation begged him for more attention on the widening health crisis — and he wanted little to do with them. …

"Compared to previous disorderly spectacles that sometimes exceeded two hours, Trump's appearance at a White House lectern on Tuesday hinted that significant changes are underway as he and his aides refocus their attention on the No. 1 threat standing between them and a second term. The format of the briefing — a mostly scripted, solo Trump — also suggested a detente was reached among opposing White House factions that spent the past few weeks clashing over the role their embattled boss should play in responding to the alarming resurgence of Covid-19 in southern and southwestern states." POLITICO

PLAYBOOK METRO SECTION -- "Fairfax, Loudoun, Montgomery call for all-virtual start to school year, scrapping earlier plans," by WaPo's Hannah Natanson and Donna St. George: "In a major reversal, the superintendents of three large public school systems in Virginia and Maryland are calling for an all-virtual start to the fall semester, scrapping earlier plans to offer a mix of in-person and distance learning.

"The superintendents of Fairfax County Public Schools and Loudoun County Public Schools, both in Northern Virginia, argued for an online-only start in meetings with their school boards Tuesday. The superintendent of Montgomery County Public Schools in Maryland announced the switch in an email late Tuesday afternoon to parents, students and staffers.

"All three districts are among the largest and most highly regarded public school systems in the Washington area. They are all defying intense pressure from the Trump administration, which has urged schools nationwide to reopen their doors five days a week come fall." WaPo

TALKER, NYT A1: "Trump's Request of an Ambassador: Get the British Open for Me," by Mark Landler in London, Lara Jakes and Maggie Haberman: "The American ambassador to Britain, Robert Wood Johnson IV, told multiple colleagues in February 2018 that President Trump had asked him to see if the British government could help steer the world-famous and lucrative British Open golf tournament to the Trump Turnberry resort in Scotland, according to three people with knowledge of the episode.

"The ambassador's deputy, Lewis A. Lukens, advised him not to do it, warning that it would be an unethical use of the presidency for private gain, these people said. But Mr. Johnson apparently felt pressured to try. A few weeks later, he raised the idea of Turnberry playing host to the Open with the secretary of state for Scotland, David Mundell.

"In a brief interview last week, Mr. Mundell said it was 'inappropriate' for him to discuss his dealings with Mr. Johnson and referred to a British government statement that said Mr. Johnson 'made no request of Mr. Mundell regarding the British Open or any other sporting event.' The statement did not address whether the ambassador had broached the issue of Turnberry, which Mr. Trump bought in 2014, but none of the next four Opens are scheduled to be played there.

"Still, the episode left Mr. Lukens and other diplomats deeply unsettled. Mr. Lukens, who served as the acting ambassador before Mr. Johnson arrived in November 2017, emailed officials at the State Department to tell them what had happened, colleagues said. A few months later, Mr. Johnson forced out Mr. Lukens, a career diplomat who had earlier served as ambassador to Senegal, shortly before his term was to end." NYT

NEW … AD WARS: A health care trade group is launching an ad campaign to push back on a plan the White House is considering to try to eliminate rebates for government drug plans. PCMA, the Pharmaceutical Care Management Association, is running the ad that claims the plan would lead to a significant increase in premiums for seniors on FOX NEWS' "Fox & Friends" and during Sean Hannity's and Tucker Carlson's nightly programs. A source familiar with the effort says the group is committed to spending seven figures toward a state-based campaign targeting vulnerable GOP senators on the issue if it remains in play. The ad

VEEPSTAKES -- "Elizabeth Warren's new role: Key Joe Biden policy adviser," by AP's Will Weissert: "Warren, a Massachusetts senator and leading progressive, has become an unlikely confidant and adviser to Biden, the presumptive Democratic presidential nominee. They talk every 10 days or so, according to aides to both politicians who spoke on condition of anonymity to freely describe their relationship. Those forums have provided opportunities for Warren to make a case on top policy issues to Biden, who ran a more centrist primary campaign.

"He adopted Warren-endorsed plans on personal bankruptcy, expanding Social Security benefits and canceling student-loan debt for millions of Americans. She also helped devise important portions of his post-pandemic economic recovery proposals."

DOWN BALLOT: "Gardner: NRSC should pull anti-Hickenlooper ad in Colorado," by James Arkin: "Sen. Cory Gardner (R-Colo.) — in a rare break with his own party's campaign arm — is calling on the National Republican Senatorial Committee to pull a controversial television ad that attacks his Democratic opponent, former Gov. John Hickenlooper.

"The ad criticizes Hickenlooper over a deadly gas explosion in the state in 2017. After the spot began airing last week, Erin Martinez, whose husband and brother died in the explosion, called it 'horrifying' and said it disgraced her family members' legacy. Hickenlooper and Democrats in the state echoed her calls for it to be taken down.

"Gardner, who was the NRSC chair in the 2018 election cycle, said in a statement to POLITICO that he spoke to Martinez on Tuesday. He disavowed the committee's ad and said he wanted Republicans to stop running it." POLITICO

 

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CNN'S MANU RAJU and ALEX ROGERS: "Susan Collins withholds support from Trump despite endorsing previous GOP presidential nominees"

TRUMP'S WEDNESDAY -- The president will participate in the ceremonial swearing-in of Russ Vought as OMB director at 12:30 p.m. in the Oval Office. He will have lunch with VP Mike Pence at 12:45 p.m. in the private dining room, then is due to receive his intel briefing at 2 p.m. in the Oval Office. He will deliver remarks on "Operation Legend: Combating Violent Crimes in American Cities" at 3:15 p.m. in the East Room.

 

JOIN TOMORROW AT 1:30 p.m. EDT – A GLOBAL RALLYING CRY: The Black Lives Matter movement has gone global with anti-racism protests sweeping cities around the world. What does the racial reckoning look like abroad? Join Global Translations author Ryan Heath for a conversation on how the fight for equality has become a worldwide rallying cry following the killing of George Floyd. REGISTER HERE.

 
 
PLAYBOOK READS

A mobile morgue in El Paso, Texas, is pictured. | Getty Images

PHOTO DU JOUR: A mobile morgue waits outside the medical examiner's office in El Paso, Texas, on Tuesday as hospitals plan for extra storage space for dead bodies amid the state's coronavirus explosion. | Cengiz Yar/Getty Images

BETSY WOODRUFF SWAN, NATASHA BERTRAND and DANIEL LIPPMAN: "Trump administration weighs a show of force in more cities": "Portland may just be the beginning. Federal law enforcement agencies are gearing up to expand their footprint nationwide in the coming weeks, despite concerns about the recent scenes of violence and chaos in Oregon.

"Department of Homeland Security officials have considered deploying mobile field forces to protect federal property in cities around the country that experience unrest, two people familiar with the discussions told POLITICO. And the Department of Justice is planning to expand 'Operation Legend,' a law enforcement initiative launched by Attorney General Bill Barr earlier this month to fight 'the sudden surge of violent crime' in Kansas City, Mo.

"DOJ plans to announce this week that the operation, which involves agents from the FBI and the Drug Enforcement Administration, will expand into more cities, a DOJ official told POLITICO. 'We are seeing success in our Kansas City operation and have already arrested some wanted fugitives,' the DOJ official said."

 

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VALLEY TALK -- "Facebook Creates Teams to Study Racial Bias, After Previously Limiting Such Efforts," by WSJ's Deepa Seetharaman and Jeff Horwitz: "Facebook Inc. is creating new teams dedicated to studying and addressing potential racial bias on its core platform and Instagram unit, in a departure from the company's prior reluctance to explore the way its products affect different minority groups.

"The newly formed 'equity and inclusion team' at Instagram will examine how Black, Hispanic and other minority users in the U.S. are affected by the company's algorithms, including its machine-learning systems, and how those effects compare with white users, according to people familiar with the matter.

"An Instagram representative confirmed the move, adding that the Facebook platform is also creating a similar product team for its namesake app. 'The racial justice movement is a moment of real significance for our company,' said Vishal Shah, Instagram's head of product. 'Any bias in our systems and policies runs counter to providing a platform for everyone to express themselves.'" WSJ

-- THE VERGE'S CASEY NEWTON: "Antitrust investigations aren't the biggest threat to Facebook's future"

-- NBC: "Twitter bans 7,000 QAnon accounts, limits 150,000 others as part of broad crackdown," by Ben Collins and Brandy Zadrozny: "Twitter announced Tuesday that it has begun taking sweeping actions to limit the reach of QAnon content, banning many of the conspiracy theory's followers because of problems with harassment and misinformation.

"Twitter will stop recommending accounts and content related to QAnon, including material in email and follow recommendations, and it will take steps to limit circulation of content in features like trends and search. The action will affect about 150,000 accounts, said a spokesperson, who asked to remain unnamed because of concerns about the targeted harassment of social media employees.

"The spokesperson said that as part of its new policy, the company had taken down more than 7,000 QAnon accounts in the last few weeks for breaking its rules on targeted harassment."

 

HAPPENING TODAY – COVID-19 AND CALIFORNIA'S HOUSING CRISIS : Tens of thousands of Californians bounce from one place to another, living in overcrowded housing in impoverished neighborhoods, in cars, or on the streets. How has Covid-19 exacerbated this already critical issue? Join POLITICO reporters Joanne Kenen and Victoria Colliver and a lineup of expert guests for a virtual conversation on what role social determinants of health, like housing, will have in post-Covid-19 recovery efforts in California. REGISTER HERE.

 
 
PLAYBOOKERS

Send tips to Eli Okun and Garrett Ross at politicoplaybook@politico.com.

SPOTTED at a Bipartisan Policy Center Zoom awards dinner hosted by BPC President Jason Grumet: Sens. Lamar Alexander (R-Tenn.), Patty Murray (D-Wash.), Tina Smith (D-Minn.) and Bill Cassidy (R-La.), Reps. Garret Graves (R-La.) and Debbie Dingell (D-Mich.), Julián Castro, Henry Cisneros, Bob Dole, Olympia Snowe, Robbie Bach, Marlene Colucci, Bill Frist …

... Esther Coopersmith, Tom Daschle, Kimberly Olson Dorgan, Dan Glickman, Christine Gregoire, Kathy "Coach" Kemper, John and Diana Villiers Negroponte, Michael Steele, John and Betty Ann Tanner, Andrei Iancu, Ashok Mirpuri, Dirk Wouters, Grace Koh, Kelsey Valentine, Sidney Collie, Bojan Vujic, Kevin McGinnis, Selena Strandberg, Janet Pitt and Kaivan Shroff.

BIRTHDAY OF THE DAY: Arshi Siddiqui, partner at Akin Gump. A trend she thinks doesn't get enough attention: "More and more, there is a sense that people abroad aren't necessarily welcome to study and work in the U.S. Attracting the best and brightest from all over the world has always been a driver of U.S. innovation and economic growth. My dad came to the U.S. on a scholarship for his Ph.D., and just like so many other immigrants, the American dream and American values are core to his story even though he was not born here. Hopefully, those types of stories will not be forgotten." Playbook Q&A

BIRTHDAYS: Bob Dole, former Senate majority leader, is 97 (h/t Scott Reed) … Rep. John Larson (D-Conn.) is 72 … Rep. Robert Aderholt (R-Ala.) is 55 … Don Van Natta Jr. is 56 … Reid Cherlin … U.S. Ambassador to NATO Kay Bailey Hutchison is 77 … David Shuster … Erin Perrine, director of press comms for the Trump campaign, is 32 (h/t husband Nick) … Port Side Strategies' Will Fischer … POLITICO's Craig Howie and Seamus Dowdall … Amanda Kules … Tarun Chhabra … Alex Pappas … Caleb Smith … Sarah Hummell … former VA Secretary David Shulkin is 61 … Whitney VanMeter, VP of political affairs at UPS (h/t Jon Haber) … AJ Jorgenson … Annie Lowrey … former Rep. Mike Ferguson (R-N.J.) is 5-0 … former Rep. Curt Weldon (R-Pa.) is 73 … Ella Mizrahi … Elise Shutzer, director of field operations at Pew Charitable Trusts, is 4-0 … Kevin Cameron is 28 … Liza Rodler … Sarah Litke of Plurus Strategies … Rainesford Stauffer … Anne Szkatulski …

… Brandt Anderson, national security adviser for Sen. Todd Young (R-Ind.) (h/t Chuck Nadd) … The Daily Beast's Sam Brodey … WSJ's Warren Bass (h/t Ben Chang) … Joy Yunji Lee, counsel for the Republican National Convention … Jamaican PM Andrew Holness is 48 … Buzz Brockway … Jerry Smith … Vicki Nguyen … Sarah Obenour … Stephan Tisher … Eugene Carpino ... Amy Littleton is 3-0 (h/t Tucker Middleton) ... Natacha Hildebrand … Breanna Chandler ... Sandra Perez Hawthorne … Lindsey Neary ... Mike DiRienzo (h/t Tim Burger) … Maor Cohen ... Emily Carpeaux ... AP's Peter Prengaman ... Ceci Alvarez … CNN's Terence Burlij … Shelly Porges ... Nathan Naylor ... Soren Dayton … Mike Gibson ... Mike Moffo … Kerry Allen … Travis Korson … Sam Chiron … Enrique Goñi … Jeff Winmill ... Andrew Feinberg ... John Kim Cook ... Kim Anderson ... Les MacDonald (h/ts Teresa Vilmain) ... Maury Forman is 61 … Christine Patronik-Holder … Ben Leubsdorf

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