Playbook PM: Spotted and overheard in the Capitol

Presented by PhRMA: POLITICO's must-read briefing on what's driving the afternoon in Washington
Jun 25, 2020 View in browser
 
POLITICO Playbook PM

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

Presented by

SPOTTED AND OVERHEARD: Sen. ED MARKEY (D-Mass.) talking to Congressional Black Caucus members after a House Democratic police reform event this morning. MARKEY approached Reps. SHEILA JACKSON LEE (D-Texas) and KAREN BASS (D-Calif.) and asked to speak about his race -- he is locked in a tight primary against Rep. JOE KENNEDY (D-Mass.). BASS is the chair of the CBC and LEE is a senior member of the caucus. (h/t JOHN BRESNAHAN).

WEEKLY JOBS NUMBERS … 1.5 MILLION new unemployment claims were filed last week, bringing the total to more than 19.5 MILLION. More via WSJ

WHAT THE DSCC SHOULD BE WATCHING … CHARLES BOOKER has taken the statewide lead over AMY MCGRATH in Kentucky. Results, via the NYT

-- MCGRATH raised $41 million. BOOKER raised $792,867.

SPEAKER NANCY PELOSI this morning in the Capitol, to NBC News' LEIGH ANN CALDWELL about the Senate GOP police bill that Democrats blocked: "You all gave them so much credit for a bill that did nothing and then expected us to embrace it. No way. They did the right thing."

FLAGGING FOR CLYBURN ... BRIAN FALER: "The IRS thought it wasn't allowed to withhold stimulus checks from the dead. So it paid more than 1 million of them": "The IRS sent stimulus checks to more than 1 million people who had died because it initially believed it did not have the legal authority to withhold them, according to an independent watchdog. The administration later reversed itself, and began trying to block payments going to the dead while asking survivors to return those that did slip through, the Government Accountability Office said in an analysis released Thursday.

"The report does not say what prompted the agency to reverse course, when it decided to change direction or who made the decision. Nevertheless, the account — included in an oversight report on legislation approved in response to the coronavirus outbreak — is the fullest description thus far of how payments ended up going to the deceased." POLITICO

SCOTUS WATCH -- "Supreme Court OKs fast-track deportations," by Josh Gerstein: "Just a week after granting a reprieve to the so-called Dreamers, the Supreme Court dealt a major defeat to immigrant rights advocates by upholding a fast-track deportation process that the Trump administration is seeking to expand.

"The procedure, called 'expedited removal,' forces allegedly undocumented immigrants out of the country with little or no review by the judicial branch. In a 7-2 decision Thursday, the justices held that the Constitution's clause barring suspension of habeas corpus rights in peacetime does not preclude Congress from sharply limiting the rights of some foreigners to challenge their deportation in the federal courts." POLITICO ... The decision

Good Thursday afternoon. CONGRATS! … ROBIN TURNER has been promoted to director of editorial diversity initiatives at POLITICO. She previously was a copy editor and manager of diversity programs.

-- NOTE FROM MATT KAMINSKI, CARRIE BUDOFF BROWN and JOE SCHATZ to the newsroom: "With the help of many of you, we've made progress in recent years to make our newsroom more diverse. ... People of color now comprise a quarter of POLITICO's staff, up from 14 percent less than four years ago.

"We have to go further, faster. Today we're delighted to unveil a new position charged specifically with advancing diversity and inclusion in the newsroom, including the recruitment and mentorship of journalists of color. And equally thrilled to appoint Robin Turner to it as POLITICO's Director of Editorial Diversity Initiatives, effective immediately. ...

"Her mandate is ambitious, and she'll initially focus on several priority projects, including identifying candidates from diverse backgrounds for new editing posts, expanding a training program for journalists of color that leads to longer-term jobs in the newsroom, and overseeing the evolution of the POLITICO Journalism Institute, our educational initiative dedicated to diversifying Washington-area newsrooms."

 

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America's biopharmaceutical companies are sharing manufacturing capabilities with each other so that once a treatment or vaccine is ready, they can get it to millions of people fast. And there's no slowing down. America's biopharmaceutical companies will continue working day and night until they beat coronavirus. More.

 

COVID … HOW WE GOT HERE … NYT: "Invisible outbreaks sprang up everywhere. The United States ignored the warning signs. We analyzed travel patterns, hidden infections and genetic data to show how the epidemic spun out of control," by Derek Watkins, Josh Holder, James Glanz, Weiyi Cai, Benedict Carey and Jeremy White

THE REOPENING -- "Gov. Greg Abbott pauses Texas' reopening, bans elective surgeries in four counties to preserve bed space for coronavirus patients," by Texas Tribune's Sarah Champagne

MORE PPP PROBLEMS -- "Watchdog calls for fraud crackdown at small business lending program," by Zach Warmbrodt: "Congress's watchdog arm called on the Trump administration on Thursday to step up efforts to police the government's massive small business rescue program after finding a significant risk of fraud and resistance to oversight at the agency running the bailout.

"The Government Accountability Office targeted the Small Business Administration in a sweeping new report looking at how agencies have used $2.6 trillion in economic relief funds appropriated in response to the Covid-19 pandemic. In the report, the GAO said the $670 billion Paycheck Protection Program, which offers small business loans that can be forgiven in exchange for maintaining payroll, had limited safeguards and insufficient guidance and oversight planning — all of which have increased the likelihood that borrowers may misuse or improperly receive loans." POLITICO

ROGER STONE UPDATE -- @joshgerstein: "JUST IN: Another zinger of an order from Judge Amy Berman Jackson, seeking records about Roger Stone's request to delay his prison report date next week. This is her third demand for follow-up info."

E-RING READING -- "51 advocacy groups oppose Trump's pick for Pentagon policy chief due to past comments," by Connor O'Brien: "More than 50 advocacy groups are calling on senators to oppose Anthony Tata, President Donald Trump's nominee to be Pentagon policy chief. In a letter to senators Thursday, 51 minority, LGBT, disability and employee advocacy groups called Tata "patently unfit" for the post of undersecretary of defense for policy, citing derogatory comments he has made.

"'All of our communities have been directly harmed by Mr. Tata's words and actions,' they wrote. 'We believe that the bigotry and discrimination he has perpetuated over this career disqualify him from any federal appointment and especially one of this importance. He is one of the most openly and brazenly bigoted nominees in recent memory.'" POLITICOThe letter

THE HEALTH CARE PICTURE -- "Shorter-Term Health Plans Force Many to Pay for Lifesaving Treatments, Report Finds," by WSJ's Stephanie Armour: "Many consumers have been forced to pay for their own lifesaving treatment under shorter-term health plans that have seen enrollment jumps since the Trump administration relaxed restrictions on them, according to a report to be released Thursday by House Democrats on the Energy and Commerce Committee.

"The short-term plans don't have to comply with the 2010 Affordable Care Act, so they often exclude coverage for pre-existing conditions and charge women more for the same coverage, the yearlong investigation found. These plans have proliferated since August 2018 when the Department of Health and Human Services issued a rule expanding access, one of the most significant steps to undercut the ACA after GOP lawmakers in Congress failed to repeal it in 2017." WSJ

 

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IMMIGRATION FILES -- "Canadian tech world eyes foreign workers as Trump limits visas," by Lauren Gardner: "President Donald Trump's most recent action to limit work visas to the U.S. could create even more momentum for highly skilled foreign workers to decamp to Canadian tech firms instead. Tobi Lutke, CEO of Ottawa-based e-commerce company Shopify, was quick to fire off a tweet that invited prospective H-1B visa candidates to consider moving to Canada.

"The company even launched a website, h1bengineer.com, that redirects to Shopify's careers page. Some Canadian tech experts say it's still early to ascertain how their recruiting efforts will be affected by Trump's decision Monday to extend an order freezing green cards, a move that prohibits most categories of foreign workers through the end of 2020. But the expectation is that Canada will reap the benefits from the White House's immigration policies." POLITICO

VEEPSTAKES -- "Tammy Duckworth Is Battle Tested. Could She Help Joe Biden in His Biggest Mission?" by NYT's Jennifer Steinhauer: "She is not one of the Democratic senators who ran for the top job this cycle and then became part of the vice-presidential search. She is not from a battleground state; vice-presidential candidates often are. She is not among the running-mate contenders who are black; many leading Democrats feel Mr. Biden should choose a black woman …

"Her politics are in some ways abstruse; she largely votes with her party but she is not particularly identified with any progressive cause, other than an often bipartisan distaste for protracted foreign entanglements. ... Her background and experience could prove a boon in places around the country that resemble Southern Illinois, firmly Trump territory but where she too has prevailed. … Two people with knowledge of the vetting process say that Ms Duckworth's early interviews with the Biden campaign were impressive enough to make her a contender." NYT

VOX: "The head of US broadcasting is leaning toward pro-Trump propaganda. Biden would fire him," by Alex Ward: "If Joe Biden wins the presidency, he's promising at least one staffing change: firing the CEO of a US-funded global media agency who's accused of trying to turn it into a propaganda shop aligned with Donald Trump's ideology.

"Andrew Bates, a spokesperson for the former vice president's campaign, told me Biden will oust Michael Pack from his Senate-confirmed position at the US Agency for Global Media (USAGM) soon after entering the White House. The reason is simple: Biden believes Pack is trying to turn one of the world's largest media networks into something akin to Breitbart or Trump TV."

 

FOR CRITICAL NEWS AND CONTEXT YOU NEED IN 15 MINUTES OR LESS, LISTEN TO POLITICO DISPATCH: Coronavirus cases continue to spike as states take steps to reopen. Americans are demanding action from lawmakers to address racial injustice and police reform. How do you keep up with the never-ending news cycle? For quick analysis on the essential news of the day, listen to POLITICO Dispatch, our short daily podcast that keeps you up to date on the most important news affecting your life. Subscribe and listen today.

 
 

VALLEY TALK -- "Barr's Interest in Google Antitrust Case Keeps It Moving Swiftly," by NYT's David McCabe and Cecilia Kang: "The day-to-day digging of a federal antitrust investigation rarely rises to the level of the attorney general or the deputy attorney general. But under Mr. Barr, the agency has made top priority of looking into the country's biggest tech companies.

"He receives regular updates on the Google case from an aide, according to several people close to the investigations, while an official in the office of his deputy, Jeffrey Rosen, oversees the investigations into tech companies. In the latest sign that the Justice Department is moving swiftly, staff members appear to have begun drafting a case memo to test its legal argument, three other people connected to the case said. The agency has assigned a growing number of employees to the inquiry, and it has brought in an economic expert who could testify at a trial." NYT

-- "Tesla gave workers permission to stay home rather than risk getting Covid-19. Then it sent termination notices," by WaPo's Faiz Siddiqui in San Francisco: "When he defiantly reopened the company's plant in Fremont, Calif., against county orders last month, Elon Musk promised Tesla employees they could stay home if they felt uneasy. They would not be penalized. ... Nonetheless, two Tesla workers say they received termination notices alleging a 'failure to return to work' after they opted to take unpaid leave to protect themselves and their family members when the factory restarted production the second week of May.

"The workers, Carlos Gabriel and Jessica Naro, said they both received the notices last week from Tesla's human resources department citing their apparent failure to show up and the company's inability to reach them. The workers provided evidence of their continuing correspondence with managers. They believe they received the notifications for speaking up about their concerns with working conditions at the plant." WaPo

HUAWEI OR THE HIGHWAY -- "Official: U.S. might help others buy non-Huawei telecom gear," by AP's Joe McDonald in Beijing: "The United States is willing to help other countries finance purchases of next-generation telecom technology from Western providers so they can avoid Chinese tech giant Huawei, which Washington sees as a security threat, an American official said Thursday.

"Washington is lobbying European and other allies to exclude Huawei Technologies Ltd. as they upgrade to 5G networks. Australia, Japan and some others have imposed restrictions on Chinese technology, but Huawei's lower-cost equipment is popular with developing countries and is making inroads into Europe." AP

-- @CBCalerts: "PM rules out releasing [Huawei executive] Meng Wanzhou to secure freedom of Michael Kovrig, Michael Spavor. Trudeau says it would tell China that by 'randomly arresting' Canadians they can get what they want, and endanger any Canadians who travel overseas." Backstory

FOR THOSE KEEPING TRACK … AP/MOSCOW: "Vote to extend Putin's rule faces little protest in Russia," by Daria Litvinova: "They've offered prizes ranging from gift certificates to cars and apartments. They've put up billboards and enlisted celebrities to urge a "yes" vote. They've encouraged state-run businesses like hospitals and schools to pressure employees to register at the polls.

"Russian authorities seem to be pulling out all the stops to get people to vote on constitutional amendments that would enable President Vladimir Putin to stay in office until 2036 by resetting the clock on his term limits. The country's divided opposition, meanwhile, has failed to mobilize a significant protest amid the audacious election campaign and the weeklong voting that begins with early balloting Thursday." AP

MEDIAWATCH -- "Google Strikes Deals to Pay Some Publishers for News," by WSJ's Benjamin Mullin: "Google said the initial participants include Germany's Spiegel Group, publisher of Der Spiegel; Brazilian media company Diarios Associados; and Solstice Media, the publisher of local newspapers in Australia.

"The company didn't announce partnerships with any publishers in the U.S., where large players including Wall Street Journal parent News Corp have pressed Google to compensate them for news content. Brad Bender, Google's vice president of product management for news, said the company is talking to news outlets in 'half a dozen' additional countries, but declined to name them." WSJ

HILLARY CLINTON is hosting a conversation tonight with CAPRICIA MARSHALL , focused on Marshall's new book "PROTOCOL". The event, hosted by Politics and Prose

 

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A raft of relaxations to the Coronavirus lockdown announced

Social distancing measure relaxed
 
 
     
   
     
  Jun 25, 2020  
     
 

Good afternoon

On a day when the sunshine returned to most parts of Northern Ireland the Department of Health reported that there had been no new Covid-19 related deaths in NI.
It was also announced the the R number remains between 0-6-0.9. Very good news in our fight against the virus.

Meanwhile First Minister, Arlene Foster and deputy First Minister, Michelle O'Neill used their daily briefing to announce a change to the social distancing regulations. The decision to reduce social distancing to one metre comes only 24 hours after Prime Minister Boris Johnson announced a similar measure for all of England.

In a further relaxation of restrictions Betting shops indoor gyms have been given a date for reopening. 
Other services and sectors have received indicative dates 

Health care continues to be impacted beyond coronavirus as cancer waiting times in Northern Ireland continue to ''spiral upwards'' as the Covid-19 pandemic causes delays to services. Health Minister Robin Swann said the statistics provide a ''stark reminder'' of the massive challenges that face the health care system in Northern Ireland.

In education a summer food scheme is to be established for children entitled to free school meals, the education minister said. He is also extending a programme to provide healthy lunch and breakfast to around 5,000 deprived young people.

Finally I'm sure you'll join us all at the News Letter expressing our hopes for a safe return to his family and friends for young Noah Donohoe. 

Keep safe everyone

Michael Cousins,
Deputy digital editor

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California Today: How an Oakland Bar Is Preparing to Reopen

Thursday: An update on the Hatch. Also: Gov. Gavin Newsom addresses a steep rise in cases.
Louwenda “Pancho” Kachingwe hands an order to a delivery service driver through a window at the Hatch in Oakland.Jim Wilson/The New York Times

Good morning.

(Sign up here to get California Today delivered to your inbox.)

First, we have a quick update on rising Covid-19 case numbers:

On Wednesday, during his virtual news briefing, Gov. Gavin Newsom sought to walk a fine line between acknowledging the virus’s troubling spread and justifying the state’s continued reopening — something that observers, particularly in parts of the state that are harder hit, have begun to question more vocally.

“I want to remind everybody that we are still in the first wave of this pandemic,” Mr. Newsom said. “That said, all throughout the last number of months, we’ve been preparing — we haven’t been waiting, we haven’t been describing ourselves as victims of fate.”

There have been record numbers of new cases in recent days, he said, including over the past day, when 7,149 new cases were reported.

[See the latest updates from around the country.]

There have also been 95,970 Covid-19 tests in the state over the past day, Mr. Newsom noted — well above the roughly 60,000 daily tests the state said it would need.

He said that 4,095 people were hospitalized with Covid-19 and 1,268 people were in intensive care with the virus, but that’s just about 8 percent and 30 percent of the capacity of those systems, respectively. The state has more than unused 11,000 ventilators.

Still, the governor pleaded with residents — many of whom he acknowledged are now gathering with friends and relatives — to continue practicing social distancing, to stay outside whenever possible and to wear masks.

“The reality is people are mixing,” he said, “and that’s increasing the spread of the virus.”

Mr. Newsom also said that the state would withhold money from a $2.5 billion pool in the state budget for pandemic aid if local leaders refuse to enforce state rules. Some sheriffs have said, for instance, that they won’t enforce a statewide mask order.

“For the state of California,” he said, one enforcement tool “is the power of the purse.”

[Track coronavirus cases in each California county.]

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An Oakland bar navigates reopening

My colleague Jack Nicas usually covers tech in the Bay Area, but recently he snagged what sounded like a dream assignment: reporting on his local bar. It was actually heart-wrenching.

Here’s an update about the Hatch, an Oakland watering hole:

On March 15, Gov. Gavin Newsom called for the state’s restaurants and bars to close to slow the spread of the coronavirus. Restaurateurs and bar owners across California knew they were in for a struggle, but they expected the closure wouldn’t last much more than a month.

Three months later, California’s restaurants and bars are now just starting to open. In many cases, diners are kept outside, and some bars without kitchens are remaining shuttered.

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For the public, the lockdown has been an inconvenience. Many of us have sharpened our cooking skills — or become even more reliant on takeout and delivery. But for many of the millions of Californians who work in the service industry, the past few months have been economic anguish.

When the lockdown began, I started following my local watering hole in Oakland, a side-street hideaway called the Hatch, to understand the economic toll on the bar and its staff. In that story, which we published earlier this month, I wrote about the bar’s owner, Louwenda “Pancho” Kachingwe, and his creative efforts to save the Hatch, including battling with delivery apps and scrambling for a stimulus loan. By the time we published, he had burned through $40,000 of the bar’s emergency funds and his personal money, but he had some hope after securing a $72,500 federal loan.

I also kept up with several of his employees. Santos, the 56-year-old cook, lost his job the same day as his six children and hunkered down in a three-bedroom house he shared with 11 family members on the outskirts of Oakland. They gathered each night to pray for a way to pay their bills. The last time we spoke, they had missed their latest rent payment. Maria, the 55-year-old undocumented cleaner, battled extreme back pain that turned out to be cancer while also struggling to pay rent.

Both said they were fortunate not to have been touched by the virus; money was their biggest worry.

And Abel Oleson, a 34-year-old bartender, had $20 to his name shortly after the lockdown began but soon was making twice as much as he did at the Hatch with his stimulus-boosted unemployment checks.

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When we published the story on June 11, the situation for the Hatch and many of its employees looked dire.

[Read the full story here.]

But late last week, Oakland officials told Mr. Kachingwe that he could reopen on June 19 for outdoor seating (although he didn’t have any). He wasn’t prepared, like many of the neighboring restaurants, but now he is rushing to get ready. He is working with the city to close the one-way street outside his bar so he can move tables outside (the fruits of his monthslong lobbying effort) and is installing new slushie machines and a freezer for ice cream.

He aims to reopen next Wednesday. He has ordered branded cups to commemorate the moment, and is hoping that pent-up demand will help boost sales to somewhere near pre-virus levels — though he’s not optimistic.

There is other good news. After we published the story, Oaklanders who love the Hatch and readers from around the world donated more than $21,000 to the bar. Mr. Kachingwe said he would use some of the money on a digital ordering system he plans to install at a new takeout window he built into the kitchen. Most of the remaining funds would go to his staff, he said, including enough to cover Santos’s and Maria’s rents for the next three months.

When I first interviewed Mr. Kachingwe at the Hatch, on the final night before the lockdown, he told me that on a scale of one to 10, his level of concern that the bar would make it was a nine. Now his anxiety is a four.

“At least we can reopen,” he said. “We can work out the details on how to make it work.”

Yet he remained concerned that a surge in virus cases could force him to close again.

“That’s just a nightmare scenario,” he said.

Here’s what else to know today

We often link to sites that limit access for nonsubscribers. We appreciate your reading Times coverage, but we also encourage you to support local news if you can.

A map showing the epicenter of the earthquake.United States Geological Survey
  • A strong earthquake rattled Central California on Wednesday, setting off a rockslide near Mount Whitney and prompting campgrounds to be evacuated. It was a magnitude 5.8 quake centered near Lone Pine. [The New York Times]
  • A large increase in coronavirus infections in San Diego County has thrown into doubt whether the University of California, San Diego will be able to allow students on campus for the fall quarter. [The San Diego Union-Tribune]
  • California voters will decide the fate of the state’s affirmative action ban in November. [The Associated Press]
  • “This isn’t just a small drop in the bucket. It’s a historical moment.” The Oakland school board voted to eliminate its police force from school campuses. [The Mercury News]

California Today goes live at 6:30 a.m. Pacific time weekdays. Tell us what you want to see: CAtoday@nytimes.com. Were you forwarded this email? Sign up for California Today here.

Jill Cowan grew up in Orange County, went to school at U.C. Berkeley and has reported all over the state, including the Bay Area, Bakersfield and Los Angeles — but she always wants to see more. Follow along here or on Twitter, @jillcowan.

California Today is edited by Julie Bloom, who grew up in Los Angeles and graduated from U.C. Berkeley.

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