| | | | | |  | | By Anna Palmer, Jake Sherman, Garrett Ross and Eli Okun | Presented by |  | | | JOSH GERSTEIN: "Former Trump aide Bannon charged with swindling donors in private border wall effort": "Steve Bannon, a former senior White House adviser to President Donald Trump, has been arrested and charged along with three other men for swindling donors who supported a private effort to build sections of wall along the U.S.-Mexico border. "Bannon and the other men were indicted by a federal grand jury in New York on charges of conspiracy to commit wire fraud and money laundering in connection with their roles in the non-profit group 'We Build the Wall.' Prosecutors allege that Bannon, 66, diverted $1 million raised by the group to another organization he controlled and spent hundreds of thousands of dollars of donor funds on his personal expenses. Also charged in the two-count conspiracy indictment: activists Brian Kolfage, Andrew Badolato and Timothy Shea." POLITICO … The indictment -- THE PRESIDENT called this "sad" -- and the White House says he didn't know any of the other people involved. CNN's @KaitlanCollins: "People involved with the project that Trump definitely knows: Kris Kobach, Erik Prince and Sheriff David Clarke." -- DONALD TRUMP JR. and KIMBERLY GUILFOYLE offered testimonials in support of the organization on its website. TRUMP JR. participated in a fundraiser for it last year, per The Kansas City Star. MAGGIE HABERMAN got a statement from the Trump Org saying DON JR. spoke about what he thought the organization was doing, and disavowed what they were actually doing. The statement -- KOBACH told the NYT in 2019 that the project had THE PRESIDENT'S blessing. -- ABOUT CO-DEFENDANT ANDREW BADOLATO, via the Sarasota News Herald … FLASHBACK to Badolato's cameo in this 2016 BEN SCHRECKINGER story: "Steve Bannon's adventures in penny stocks" TRUMP'S TAXES -- "Trump Must Turn Over Tax Returns to D.A., Judge Rules," by NYT's Benjamin Weiser and William Rashbaum: "A federal judge on Thursday rejected President Trump's latest effort to block the Manhattan district attorney from obtaining his tax returns, roundly dismissing Mr. Trump's arguments that the prosecutor's grand jury subpoena was 'wildly overbroad' and issued in bad faith. "The ruling by Judge Victor Marrero of Federal District Court in Manhattan marked another setback for the president in his yearlong legal fight to block the subpoena. The conflict has already reached the Supreme Court once and could end up there again if, as expected, Mr. Trump appeals." NYT NEW … W.H. chief of staff MARK MEADOWS is planning to be on Capitol Hill for the House USPS vote Saturday, an attempt to talk to Democrats and Republicans about negotiations on Covid relief. THE WHITE HOUSE has been pushing for a small-scale relief bill -- one that includes enhanced unemployment, PPP money and stimulus checks. DEMOCRATS, however, have rejected that approach, and have suggested they'd talk to the White House about a deal somewhere in the $2 trillion neighborhood -- which they consider halfway between their offer and the GOP offer. -- THIS IS AN EFFORT BY MEADOWS to try to build pressure for a deal on the Hill. Roughly 100 Democrats have signed a letter urging Speaker NANCY PELOSI and House Majority Leader STENY HOYER to schedule a vote that would create an enhanced unemployment insurance program tied to the jobless rate and the Covid emergency. -- IT DOESN'T SEEM LIKE HE WILL BE MEETING with PELOSI, who has made it abundantly clear that they have nothing to talk about until Republicans are willing to meet her in the middle -- the GOP would need to go up $1 trillion from where they are. -- THE WHITE HOUSE saw PELOSI'S "Plug in with Playbook" interview, in which she said she was willing to cut her bill in half, and started to do legwork to figure out how to get there. But after her staff walked back the comment, they abandoned the effort. The interview FWIW … THE WHITE HOUSE is likely to formally come out against the Dems' USPS bill. Good Thursday afternoon. | | A message from the American Investment Council: Whether your child is learning from home or returning to the classroom, private equity-backed companies are helping to create a safer and more accessible educational experience this fall. Back to school will look different this year, but we're in this together. | | | A WALL ST. GUY NOW … WSJ: "Former House Speaker Paul Ryan Starts Blank-Check Company": "Paul Ryan, the consummate Washington negotiator, is trying his hand at another kind of deal making, jumping into the rush on Wall Street toward blank-check acquisition companies. "The former House speaker will serve as chairman of a vehicle known as Executive Network Partnering Corp., which will seek to raise roughly $300 million in an initial public offering, people familiar with the deal said. That figure is subject to change based on demand. … "Also known as special-purpose acquisition companies, they turn the traditional IPO model on its head by going public before acquiring a business. They have gained popularity as deal makers look to take advantage of the economic dislocation caused by the coronavirus pandemic." THE UNEMPLOYMENT PICTURE -- "Unemployment claims jump back over 1 million," by Rebecca Rainey: "The number of workers applying for unemployment benefits jumped to 1.1 million last week, the Labor Department reported Thursday, the first time in two weeks that new claims have gone up. "States have been processing roughly 1 million new unemployment applications each week since mid-March, when the coronavirus pandemic began sweeping through the country, forcing the shutdown of many businesses. An additional 542,797 workers filed for jobless aid under the new pandemic unemployment assistance program, created for those not traditionally eligible for unemployment benefits like the self-employed and gig workers." POLITICO WOW … PELOSI has endorsed Rep. JOE KENNEDY in his race against Sen. ED MARKEY in Massachusetts. Boston Globe scoop … Video announcing the endorsement -- WHAT A MASSIVE ENDORSEMENT: PELOSI served with MARKEY in the House for a quarter century, and he was an ally of the speaker. SYMONE SANDERS joined us this morning in the latest "PLUG IN WITH PLAYBOOK" to discuss how JOE BIDEN will approach the next 75 days, how they'll respond to TRUMP attacks and whether BIDEN and KAMALA HARRIS will engage more with the national press. Highlights below: -- ON BIDEN'S MESSAGE TONIGHT: "This is going to be very forward-looking. This is going to be about Joe Biden's plan for America. Really speak to this moment that we're in, but also how we can go forward." -- ON TRUMP CAMPAIGN ATTACKS ON HUNTER BIDEN: "We're going to call out the lies. We're going to reassert Vice President Biden's position, which is in a Biden administration, his children will not have offices in the West Wing. They will not serve as administration officials. … "I think the Trump campaign is re-upping these attacks because they have yet to find anything that sticks. The Ukraine did not stick. Saying that Vice President Biden was corrupt didn't stick. Saying he's not all the way there didn't stick. So they really haven't found an attack that has been able to penetrate and burst the bubble, if you will, and penetrate down to the American people." Video clip -- ON LACK OF MEDIA ACCESS: "Look, we are no stranger to engaging with the press. Vice President Biden and Senator Harris are sitting down with ABC for their first joint interview, and that will air on Sunday. And yes, you can expect to see them taking additional questions. It is no surprise to folks, and I know lots of our reporters particularly on our beat have heard me say this before, but we have prioritized local press in this campaign. No shade to our friends at the national media, but that has been a focus for us." | | | | PRE-GAME THE PRIME-TIME DNC LINEUP WITH POLITICO'S HIT "FOUR SQUARE" SHOW : This isn't quite how we predicted the convention would look back in January, but here we are. Time to make the most of it! Join Four Square host Eugene Daniels and top political journalists Tim Alberta, Laura Barrón-López, and Ryan Lizza throughout convention week for a breakdown of the day's biggest political developments and the buzz surrounding the convention. WATCH LIVE. | | | | | UH-OH … WAPO: "Evidence grows that children may play a larger role in transmission than previously believed," by Ariana Eunjung Cha: "As schools reopen in parts of the United States, a study published Thursday found that some children have significantly higher levels of virus in their airways than the most severely ill adults — suggesting their role in community spread may be larger than previously believed. "One of the study's authors, Alessio Fasano, a physician at MassGeneral Hospital for Children, said that because children tend to exhibit mild symptoms or none at all, they were largely ignored in the early part of the outbreak and not tested. But they may have been acting as silent spreaders all along." WaPo … The study BUSINESS BURST -- "American Airlines will drop flights to 15 cities in October," by AP's David Koenig: "American Airlines will drop flights to 15 smaller U.S. cities in October when a federal requirement to serve those communities ends. The airline blamed low demand during the coronavirus pandemic, which has triggered a massive slump in air travel. ... American said its schedule covering Oct. 7 through Nov. 3 will drop flights to cities including Sioux City, Iowa; New Haven, Connecticut; and Springfield, Illinois." AP COVID'S LONG-TERM EFFECTS -- "As Covid-19 Symptoms Linger, Demand for Specialized Clinics Surges," by WSJ's Sarah Toy: "A backlog of patients is growing at new clinics dedicated to Covid-19 survivors who continue to have symptoms many weeks or months after getting sick. Some people who fell ill with the new coronavirus earlier in the year are still struggling with symptoms ranging from muscle aches to memory issues. Many of these patients say they have had trouble finding the resources they need to navigate lingering symptoms. "The medical community is turning more research and clinical attention to this cohort of survivors, whom some doctors are calling long haulers and generally don't consider contagious. Around the country, medical centers have begun setting up clinics focused on evaluating and treating Covid-19 patients reporting symptoms that last weeks or months after their initial illness or diagnosis. But the clinics are relatively new and hospitals are still adding resources, so wait lists can stretch months at the ones that exist so far." WSJ FAUCI 'OUT OF ACTION' -- "Fauci undergoes surgery to remove vocal cord polyp," by Matthew Choi and Sarah Owermohle: "Anthony Fauci, one of the most recognizable members of the White House coronavirus task force, had surgery to remove a polyp on his vocal cord Thursday morning, he confirmed to POLITICO. … Fauci told POLITICO he would be 'out of action' when it came to long speeches for two weeks but that he will be able to do short interviews after a week or so." FOR YOUR RADAR -- "Trump takes Europe hostage on Iran," by Matthew Karnitschnig in Berlin: "U.S. Secretary of State Mike Pompeo confirmed he will travel to U.N. headquarters in New York on Thursday to formally trigger the so-called snapback provision that would force the Security Council to reactivate sanctions imposed against Iran in the years before a 2015 agreement to try and force Tehran to curtail its nuclear weapons program. ... "The American push for sanctions has left Europe, which is intent on keeping the Iran nuclear deal alive and opposes the U.S. move, in an awkward position. Not only does it put the European powers on the Security Council (France, the U.K. and Germany, which currently holds a non-permanent seat) in the same camp as Russia and China, both of which oppose the U.S. position, it also creates the appearance the trio is backing Iran over Washington, Europe's most important ally." POLITICO | | | | BECOME A CHINA WATCHER: The fate of U.S.-China communication is hanging in the balance. Now that the White House has issued an ambiguous future ban on "transactions" involving WeChat, what's next? The decisions made in Washington and Beijing will shape our future for decades to come. Join the conversation and gain expert insight from informed and influential voices in government, business, law, tech, and academia. China Watcher is as much of a platform as it is a newsletter. Subscribe today. | | | | | HEADS UP -- "Senate Democrats investigating whether USPS changes held up prescription drug deliveries," by WaPo's Tony Romm: "The new inquiry is the work of Sens. Elizabeth Warren (D-Mass.) and Robert P. Casey Jr. (D-Pa.), who issued a battery of letters to CVS, Walgreens and other top providers on Thursday to determine whether their customers had experienced delays in recent weeks. They cited public reporting and private correspondence with their constituents as they raised concerns that patients may have been forced to go without medication for weeks as a result of policies enacted under the watch of the Trump administration. … "The two Democrats directed their letters to Cigna Corp., which owns Express Scripts; CVS Health; UnitedHealth Group, which owns OptumHealth; Humana; and the parent company for Walgreens and Duane Reade. They asked them to supply information about the number of customers receiving their prescriptions by mail, the average time it takes for them to be shipped and the extent to which recent Postal Service policy changes have introduced new delays for customers or costs to the companies." WaPo THE MAIL-IN MESS -- "Can the Post Office Handle Election Mail? Why the Recession Could Actually Help," by The Upshot's Quoctrung Bui and Margot Sanger-Katz: "Even if everyone voted by mail, it would not result in as much additional mail volume as a typical holiday season. If half of registered voters from 2018 chose to vote by mail, that would mean that the post office would have to process 153 million pieces of mail. This spring's first-class mail volume was already down 1.2 billion pieces from the same period last year. "Assuming the seasonal trends this year match those in the past, the additional mail-in ballots in the fall still wouldn't push first-class mail volume anywhere near last year's levels, unless they were all mailed the week before the election. ... [I]f things proceed as normal, the Postal Service is particularly well equipped to handle paper mail like ballots, especially in a year with depressed postal volumes." NYT SCOTUS WATCH -- "Administration wants Supreme Court to review suit on Trump's Twitter-blocking," by Leah Nylen: "The administration asked the Supreme Court on Thursday to decide whether President Donald Trump can block his critics on Twitter. "An appeals court ruled last year that Trump's practice of blocking critics from his @RealDonaldTrump account violates the First Amendment. In a petition asking the justices to review the case, Justice Department lawyers argued that the decision blurs the line between government action and private conduct." POLITICO RACIAL RECKONING -- "Congressman seeks to end park's designation as Lee memorial," by AP's Matthew Barakat in Falls Church, Va.: "A northern Virginia congressman is pursuing legislation to remove Confederate Gen. Robert E. Lee's name from the official designation at the historic mansion where he lived before the Civil War. "The home, overlooking the nation's capital and surrounded by Arlington National Cemetery, is a National Park Service site officially known as 'Arlington House, The Robert E. Lee Memorial.' Congress renamed the site in 1972 to add Lee's name and designate it as a memorial to him. But Democratic Rep. Don Beyer, whose district is home to Arlington House, said it's time that Lee's name be stripped." AP THE LONG ARM OF XI JINPING -- "How China Targets Scientists via Global Network of Recruiting Stations," by WSJ's Kate O'Keeffe and Aruna Viswanatha: "China is targeting top scientific and technological expertise in the U.S. and other advanced nations through an expanding network of 600 talent-recruitment stations world-wide, a new report partly funded by the U.S. State Department has found. "The research conducted by an Australian think tank details the little-known but elaborate infrastructure the Chinese Communist Party uses to recruit scientists from organizations such as Tesla Inc. and Harvard University through such programs. ... The talent programs, such as the Thousand Talents Plan, are supported by 600 recruitment stations in countries around the world. They include Germany, Australia, the United Kingdom, Canada and Japan, according to the report published by the Australian Strategic Policy Institute, a nonpartisan think tank created by the Australian government. The U.S. has the most with at least 146 stations, the report said." The report VALLEY TALK -- "Twitter Data Case Sparks Dispute, Delay Among EU Privacy Regulators," by WSJ's Sam Schechner: "European Union privacy regulators are clashing over how much—if anything—to fine Twitter Inc. for its handling of a data breach disclosed last year, delaying progress of the most advanced cross-border privacy case involving a U.S. tech company under the EU's strict new privacy law." WSJ TRANSITION -- Eli Woerpel will be legislative director for Rep. Dan Meuser (R-Pa.). He currently is legislative director for Rep. Denver Riggleman (R-Va.). | | | | A message from the American Investment Council:   Private equity-backed companies are providing digital textbooks and software to support remote learning and partnering with individual schools to help them safely reopen. 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