Playbook PM: Pelosi floats a debt ceiling plan B

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Oct 12, 2021 View in browser
 
Playbook PM

By Rachael Bade, Garrett Ross and Eli Okun

Presented by

Better Medicare Alliance

A NEW END TO THE DEBT-CEILING LOGJAM? — In her news conference this morning, Speaker NANCY PELOSI just floated an idea percolating among Democrats that would, in theory, give party leaders a way out of the precarious standoff over the debt ceiling: allowing the Treasury secretary to raise the debt ceiling on his or her own accord while giving Congress the power to overrule the secretary should lawmakers want to.

"I do think it has merit," the California Democrat told reporters, arguing that the proposal has bipartisan support — or, at least, has in the past.

We reached out to Senate Minority Leader MITCH MCCONNELL's office on this and will let you know what we hear back. But if Republicans are eager to harangue Democrats on the campaign trail for both voting to raise the national debt by several trillion dollars and also spending trillions on new programs, it seems unlikely that they'll go along. We'll see.

MORE PELOSI:

— The speaker reiterated that Democrats need to start making cuts to their larger reconciliation package to bring it closer to the range favored by Senate moderates. "If there are fewer dollars to spend, there are choices to be made," she said.

— Pelosi also acknowledged the ongoing debate about whether they should tackle fewer policies with longer timelines, or more policies with shorter lifespans. "Some members have written back to me and said, 'I want to do everything,'" she said, referring to the "Dear Colleague" letter she circulated last night. "We'll have that discussion."

Good Tuesday afternoon.

OBAMA, BIDEN TO CAMPAIGN FOR MCAULIFFE — Former President BARACK OBAMA is planning to rally for TERRY MCAULIFFE next week in Richmond, Va., Zach Montellaro reports. The planned appearance by Obama will come on Saturday, Oct. 23 — 10 days before Election Day and on the heels of other high-profile boosters to the campaign this coming weekend: First lady JILL BIDEN and STACEY ABRAMS will stump for McAuliffe on Friday and Sunday, respectively.

— And despite all that has been made of McAuliffe's apparent distancing from President JOE BIDEN, the former governor said today that Biden will return to the campaign trail before voters go to the polls. Via National Journal's Josh Kraushaar: "At an education roundtable, Terry McAuliffe said President Biden will be campaigning for him. 'He'll be coming back. You bet he will.'"

TRUMP HOTEL NEARS DEAL — Former President DONALD TRUMP may be on the verge of selling his D.C. hotel, WSJ's Craig Karmin and Julie Bykowicz report. "CGI Merchant Group, a Miami-based investment firm, is in talks to acquire the lease on the hotel, these people said," they write. "The lease deal could ultimately fetch closer to $400 million, which would represent roughly a doubling of the money the Trump Organization spent to convert the government building into a luxury hotel, said one of the people familiar with the matter."

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CONGRESS

HEADS UP — DEBORAH BIRX, the Trump White House Coronavirus Response coordinator, "is taking questions from the congressional select committee investigating the pandemic," sources tell Betsy Woodruff Swan and Erin Banco. "The session is part of the probe into how the Trump administration handled the onset of the global coronavirus pandemic." More from Congress Minutes

DON'T MESS WITH MAXINE — @RepMaxineWaters: "I have been hacked and my Twitter account has been erased. I know who has done this. I will take care of this. M Waters." The tweet, from the account in question, which appears to be fully intact

AFGHANISTAN FALLOUT

GRAB KABUL BY THE HORNS — Biden is planning to tap ELIZABETH JONES as coordinator for Afghan relocation efforts, sources tell Lara Seligman, Andrew Desiderio and Nahal Toosi . "The State Department plans to announce as soon as this week that Jones, a veteran diplomat who served as the ambassador to Kazakhstan and as deputy special representative for Afghanistan and Pakistan, will replace JOHN BASS, the former U.S. ambassador to Afghanistan, the people said. In the new position, Jones will be responsible for overseeing the entire Afghanistan effort, from facilitating the departures of people who still want to leave, to relocating them in the U.S."

MEANWHILE — The European Union "said Tuesday that it will provide $1.16 billion in aid to Afghanistan and neighboring countries as a way to avoid 'catastrophe,'" WaPo's Chico Harlan reports in Rome. "The E.U.'s pledge came just ahead of a virtual Group of 20 summit on the topic of Afghanistan, where one of the most urgent issues involves how to stave off famine and the collapse of basic services while not providing a signal of support for the Taliban leaders."

THE WHITE HOUSE

HISTORY MADE — "Under a groundbreaking decision by state and federal officials, many private health plans sold in Colorado will soon be required to cover hormone therapy, genital reconstructive services and other procedures sought by transgender patients," WaPo's Dan Diamond writes . "The change, which would take effect on Jan. 1, 2023, would mark the first time the federal government has approved a requirement for transition-related coverage in individual and small-group health plans."

 

INTRODUCING CONGRESS MINUTES: Need to follow the action on Capitol Hill blow-by-blow? Check out Minutes, POLITICO's new platform that delivers the latest exclusives, twists and much more in real time. Get it on your desktop or download the POLITICO mobile app for iOS or Android. GET A FIRST LOOK AT CONGRESS MINUTES HERE.

 
 

ALL POLITICS

A POLITICAL COVID TEST — Gov. PHIL MURPHY is popular in New Jersey, receiving high marks for his early response to the coronavirus pandemic. But that isn't stopping his GOP challenger, JACK CIATTARELLI, from setting up the gubernatorial election as a referendum on Murphy's record. NYT's Tracey Tully writes that the contest in New Jersey this November will be "one of the first statewide tests of how voters feel about strict coronavirus-related mandates as the health crisis stretches into its 20th month and pandemic fatigue mounts."

THE ECONOMY

RECORD NUMBER OF AMERICANS QUITTING JOBS — Just days after it released a rocky jobs report, the Labor Department dropped another tranche of data this morning showing that "4.3 million people quit jobs in August, according to the monthly survey — about 2.9 percent of the workforce," WaPo's Eli Rosenberg writes. "The numbers add another data point to a surprising aspect of the pandemic: that workers are emerging with more leverage, as many employers say they are struggling to staff up."

FEDERAL REVENUE HITS NEW HIGH — Federal tax receipts are booming, Brian Faler reports . "Revenues jumped 18 percent in the fiscal year that just ended, analysts say — the biggest one-year increase since 1977. That translates into $627 billion more than in 2020, according to the nonpartisan Congressional Budget Office, which estimates that, for the first time, total government revenues topped $4 trillion."

POLICY CORNER

IMMIGRATION FILES — DHS Secretary ALEJANDRO MAYORKAS told Yahoo's Michael Isikoff that the Trump-era Title 42 authority "is not an immigration policy that we in this administration would embrace, but we view it as a public health imperative as the Centers for Disease Control has so ordered."

 

BECOME A GLOBAL INSIDER: The world is more connected than ever. It has never been more essential to identify, unpack and analyze important news, trends and decisions shaping our future — and we've got you covered! Every Monday, Wednesday and Friday, Global Insider author Ryan Heath navigates the global news maze and connects you to power players and events changing our world. Don't miss out on this influential global community. Subscribe now.

 
 

BEYOND THE BELTWAY

ABORTION ON THE DOCKET — The Biden administration urged the courts this morning to halt Texas' abortion ban, its latest attempt to intercede in the ongoing battle, AP's Paul Weber reports in Austin. "The days ahead could now be key in determining the immediate future of the law known as Senate Bill 8, including whether there is another attempt to have the U.S. Supreme Court weigh in."

Related reading: "Justices' views on abortion in their own words and votes," by AP's Mark Sherman and Jessica Gresko

HUNGER IN AMERICA — Hunger and food insecurity in the U.S. is dropping in measurable ways, AP's Ashraf Khalil writes , but is still running above pre-pandemic levels. "An Associated Press review of bulk distribution numbers from hundreds of food banks across the country revealed a clear downward trend in the amount of food handed out across the country, starting in the spring as the COVID-19 vaccine rollout took hold and closed sectors of the economy began to reopen. … All told, families facing food insecurity find themselves still dependent on outside assistance and extremely vulnerable to unforeseen difficulties."

AMERICA AND THE WORLD

BIG-STICK DIPLOMACY — "In an apparent continued effort to drive a wedge between Washington and Seoul, [KIM JONG UN] also used his speech at a rare exhibition of weapons systems Monday to stress that [North Korea's] military might isn't targeted at South Korea and that there shouldn't be another war pitting Korean people against each other," AP's Hyung-Jin Kim reports from Seoul. "'The U.S. has frequently signaled it's not hostile to our state, but there is no action-based evidence to make us believe that they are not hostile,' Kim said Monday, according to the official Korean Central News Agency. 'The U.S. is continuing to create tensions in the region with its wrong judgments and actions.'"

PLAYBOOK METRO SECTION

PREP SCHOOL CONFIDENTIAL — St. Albans, the prestigious D.C. boys school, is cracking down on hate speech, the Washington Free Beacon's Aaron Sibarium reports . "'It is the impact of hate speech, rather than the intent of those perpetrating it, that is of utmost importance,' the draft policy states. As such, boys could be expelled 'even in the case of a single expression, act, or gesture' — including 'misplaced humor,' which the policy says 'should be reported immediately to the student's adviser.'"

PLAYBOOKERS

MEDIA MOVE — Kate Davidson is joining POLITICO as an author for Morning Money. She previously was an economic policy reporter at WSJ.

OBAMA ALUMNI — Antoinette Rangel will be an assistant U.S. attorney in the U.S. Attorney's Office for the Eastern District of New York. She most recently was a judicial law clerk for the U.S. District Court for the Southern District of New York and is an Obama White House and Hillary 2016 alum.

TRANSITION — W. Robert de Jongh is joining the Brunswick Group as a partner. He most recently was a managing director at Deloitte.

WEDDINGS — Toby Tyler, deputy comms director for Sen. Lindsey Graham (R-S.C.), and Clay Douthat, national bank examiner at the Office of the Comptroller of the Currency, got married on Friday at the D.C. War Memorial. Pic

— Lindsay Walters, SVP for U.S. public affairs at Edelman, and Patrick Clifton , got married on Oct. 2 at St. Joseph's on The Brandywine in Wilmington, with a reception at the bride's family farm in Chadds Ford, Pa. The two met while working in the Trump White House. Pic by Andrea Hanks ... Another pic SPOTTED: Joe Hagin, Dan Walsh, Beau Harrison, Nick Butterfield, Mike Haidet, Douglas Sellers, Stewart Young, Margo Martin, Kate Karnes, Sarah Sanders, Tom Bossert and Jessica Ditto, Casey Black, Lauren Pratapas and John Legittino.

WELCOME TO THE WORLD — Jamie Matese, manager of federal government relations at National Grid and a Peter King alum, and Trevor Matese, VP of commercial real estate at the Congressional Bank, welcomed James John Matese on Monday. He joins big sister Grace.

— Spencer Wolf, a VP at The Daschle Group, and Holly Wolf, a management consultant at Guidehouse, welcomed Winifred "Winnie" Wolf last Wednesday. She joins big sister Colette. Pic Another pic

BONUS BIRTHDAY: Former Labor Secretary Seth Harris

 

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More than 160,000 prepaid cards under Northern Ireland’s high street voucher scheme have been issued, the Economy Minister told MLAs.

Breaking News from the News Letter
 
 
     
   
     
  Oct 12, 2021  
     
 
Michael Cousins
 
Michael Cousins
Acting Managing Editor

Good afternoon

 

This is your afternoon Coronavirus update from the News Letter

 

The deaths of a further six patients who had previously tested positive for Covid-19 have been reported in Northern Ireland.

The region's department of health has also notified another 1,278 cases of the virus.

On Tuesday morning there were 368 Covid-positive patients in hospital, of whom 31 were in intensive care.

To date 2,556,457 vaccines have been administered. 


 
     
  More than 160,000 prepaid cards under Northern Ireland's high street voucher scheme have been issued  
     
  Gordon Lyons said that as of Monday, 161,000 had been delivered with another 50,000 ready to be shipped.  
     
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These are the 40 NI postcodes with the highest number of positive results for Covid-19 in the last seven days
 
With cases of Coronavirus in Northern Ireland still on the rise, we explore how many positive Covid test results there are in 40 postcodes in Northern Ireland.
 
     
 
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Covid NI: How many Covid test results are coming back positive in your area?
 
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California Today: The oddly sleepy Theranos trial

The former Silicon Valley darling faces up to 20 years in prison if convicted.
Author Headshot

By Soumya Karlamangla

California Today, Writer

It's Tuesday. We're checking in on the high-profile case against the former Silicon Valley darling Elizabeth Holmes. Plus, two Bay Area professors won the Nobel Prize in economics.

The Theranos founder Elizabeth Holmes leaving the courthouse in San Jose last week.Brittany Hosea-Small/Reuters

Unlike the frenzy that has surrounded nearly every twist and turn in the Theranos saga, the trial of Elizabeth Holmes has been surprisingly mellow.

Holmes, the former start-up executive whose downfall has been retold in a documentary, book and podcast, faces up to 20 years in prison in a case that many see as comeuppance for the wrongs of Silicon Valley.

Court proceedings in San Jose began last month with feverish media coverage, as reporters lined up before dawn to secure a seat in the courtroom and a man who said he was a bystander turned out to be related to Holmes.

But the trial — now entering its sixth week of at least 16 — has quickly settled into, well, a trial.

The day-to-day events are mostly procedural, technical and sometimes dull, my colleagues Erin Woo and Erin Griffith write in a new article about what it's like inside the courtroom. (Apparently Holmes is easy to draw because she rarely moves, a courtroom artist revealed in the piece.)

I caught up with Woo and Griffith, who told me what has struck them about the trial so far and what they'll be paying attention to going forward.

Running out of jurors

The jury seems to be the biggest threat to the case staying on track.

The trial began with 17 jurors, including five alternates. But we're less than halfway through, and only three alternates remain.

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In the first week, a juror was dismissed after learning that her employer would not compensate her for the time away.

Then last week, a juror was sent home after she said her Buddhist faith made her uncomfortable with the idea of punishing Holmes. Her replacement said she did not speak English well, though the judge did not allow her to leave.

"I think a few of us panicked that the whole thing was about to unravel last week," Griffith told me. "It was hard enough to find 17 people who had never heard of Theranos or Elizabeth Holmes and could set aside three months of their lives for this."

The jurors also have to be protected from any news coverage of the trial so they remain unbiased. The judge begins and ends each court session by asking whether they have recently heard about Holmes or Theranos.

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And there's the pandemic to worry about — a day of testimony was canceled early in the trial because a juror had a Covid-19 exposure.

If the number of jurors drops below 12, there could be a mistrial, a major setback for prosecutors given that the trial has already been delayed repeatedly.

Will Holmes testify?

Much of what witnesses have been questioned about hasn't always been easy to follow.

Words like "immunoassays" and abbreviations like H.C.G. (a hormone test) are often presented with no explanation, Woo said.

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"Something that I didn't expect is how much of the testimony deals with very complicated scientific issues, and how little it feels those issues are spelled out for the jury — who were selected at least in part because of their unfamiliarity with Theranos and the biotech industry," Woo told me. "I'm very interested to see what they get out of this."

The prosecution is currently presenting its case, after which the defense will begin. Holmes's lawyers are expected to argue that she was manipulated by Sunny Balwani, her ex-partner and ex-boyfriend.

Holmes is on the list of potential witnesses, though we don't know if she's going to testify.

Reporters don't get a heads-up as to who's on the schedule for the day, and weren't warned even when former Defense Secretary James Mattis was called to the stand a few weeks ago.

"Every new witness is a bit of a surprise. You hear whispers and furious typing spread like a wave across the room as the reporters relay the news to their editors or Twitter," Griffith told me. "The moment they called General Mattis was the closest thing to a dramatic movie courtroom moment so far. I actually let out a tiny gasp."

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To fight the Dixie fire, more than 700 fire vehicles were supported by a command center the size of a small town at the Lassen County fairgrounds.Brent McDonald/The New York Times

If you read one story, make it this

This is what fighting a giant wildfire looks like.

"No Time to Die" being screened in Burbank.Philip Cheung for The New York Times

The rest of the news

  • A Hollywood success: Movie theaters are finally bouncing back from the pandemic, with solid turnout over the weekend for the latest James Bond spectacle.
  • Power outages: Pacific Gas & Electric began shutting off power to about 25,000 customers in Central and Northern California on Monday, and Southern California Edison warned it may do the same amid increased fire danger, The Associated Press reports.
  • Covid-19 shots: If you've had Covid-19, do you need a vaccine?
  • Latino voters: Jennifer Medina, a Times political reporter based in Los Angeles, talks about how she gets in the mind of Latinos who voted for Trump.
  • Dottie Dodgion: One of the very few high-profile female drummers in the male-dominated jazz world of the 1950s and '60s, Dodgion died on Sept. 17 in Pacific Grove. She was 91.
  • Coronavirus death toll: More than 70,000 people have died of Covid-19 in California as of Monday, the most deaths of any state, The Associated Press reports.
SOUTHERN CALIFORNIA
  • A parallel universe: This Los Angeles artist makes large-scale, iridescent works that transport viewers into alien worlds.
  • Oil spill: Huntington Beach reopened on Monday after being closed for an offshore oil spill. Officials say there are no detectable levels of oil-related toxins in the water, The Associated Press reports.
  • Plane crash: A private aircraft crashed in a residential San Diego suburb, killing at least two people and damaging 10 homes, according to The Associated Press.
  • Opinion: What an L.A. City Council seat shows about power and politics.
  • Conserving the Colorado River: Farmers in the Palo Verde Irrigation District are being paid not to grow crops in an effort to keep more water in Lake Mead, which has reached historically low levels, The Los Angeles Times reports.
CENTRAL CALIFORNIA
  • Weather warning: Polluted air is expected through Wednesday in much of the Central Valley.
  • Dust storms: Strong winds and dry, loose soil led to vast dust storms that shut down highways from the Sacramento Valley to the Mojave Desert, according to SFGate.
NORTHERN CALIFORNIA
  • Magic mushrooms: Officials in Arcata, a town in Humboldt County, have decriminalized the use of psychedelic plants, including mushrooms and ayahuasca, Lost Coast Outpost reports.
  • New fires: Multiple wind-driven blazes ignited on Monday across Northern California, CBS13 reports.

What you get

What we're eating

The Times has released its list of the 50 restaurants we're most excited about this year. Seven are in California.

Main Street in Salinas.Jason Henry for The New York Times

Where we're traveling

Today's travel tip comes from Patricia Rasmussen, who recommends Salinas:

This summer we decided to travel by car from Southern California, up the coast to Carmel and over to Salinas — John Steinbeck's birthplace. We visited the home he was born in and tried to go to the museum that bears his name but it was closed. Salinas, like many small towns, struggled to keep its Main Street alive during the pandemic. Even on a Monday, we were able to enjoy the old buildings and quaint pubs. The Steinbeck home is run by volunteers who have refurbished the building and just recently reopened the doors to the public.

We took another short drive to Monterey as my husband was anxious to see Cannery Row, which isn't in the best shape. The Monterey Bay Aquarium has reopened and reservations are a must.

Steinbeck and a coastal drive made us remember why we, native Californians, still love California.

Tell us about your favorite places to visit in California. Email your suggestions to CAtoday@nytimes.com. We'll be sharing more in upcoming editions of the newsletter.

What we're recommending

And before you go, some good news

For one day at least, Cal and Stanford fans will have to make nice.

David Card, a professor at University of California, Berkeley, and Guido W. Imbens, a Stanford professor, were two of the three men jointly awarded the 2021 Nobel Prize in Economics for their research into the consequences of real-life economic experiments.

Thanks for reading. I'll be back tomorrow. — Soumya

P.S. Here's today's Mini Crossword, and a clue: A person's soul mate (6 letters).

Mariel Wamsley contributed to California Today. You can reach the team at CAtoday@nytimes.com.

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