Will the GOP line up behind McCarthy's red line?

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May 16, 2023 View in browser
 
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Kevin McCarthy speaking with reporters at the U.S. Capitol.

Speaker Kevin McCarthy said a debt limit deal must include new work requirements for some federal assistance programs. | Francis Chung/POLITICO

As congressional leaders prepare for their 3 p.m. meeting with President JOE BIDEN to negotiate on a deal to avert defaulting on the nation’s debt, Speaker KEVIN McCARTHY laid out his latest demand.

McCarthy told reporters that a debt limit deal must include new work requirements for some federal assistance programs, saying that the issue is a “red line” for him, per ABC’s Rachel Scott. McCarthy has previously proposed raising the age limit for work requirements for so-called “able-bodied adults without dependents” who receive SNAP benefits.

But it’s a bit unclear if McCarthy even has the full backing of his own conference on this one. In recent months, some Republicans in competitive seats have expressed reluctance to go there on work requirements.

  • Rep. BRIAN FITZPATRICK (R-Pa.) to HuffPost on April 27: “I think the bottom line is they’re not going to be in the final product.”
  • Rep. MARC MOLINARO (R-N.Y.) to NYT on April 6: “Those who are most vulnerable have to be protected. … We’ve always had work requirements. I’m going to focus my time on convincing my colleagues to focus on fraud, waste and abuse,” where “there’s a lot of savings to be had.”
  • Rep. MIKE GARCIA (R-Calif.) in POLITICO on April 19: “I don’t think that’s an appropriate conversation for this debt ceiling conversation at this point.”

It all adds up to the same math that has been staring McCarthy in the face since negotiations began: He cannot afford more than a handful of defections in the final vote, and this is a politically thorny issue for vulnerable lawmakers back home.

FIRST IN PLAYBOOK — Meanwhile, dozens of clean energy companies are sending a letter to Biden, McCarthy, Senate Majority Leader CHUCK SCHUMER, Senate Minority Leader MITCH McCONNELL and House Minority Leader HAKEEM JEFFRIES, railing against House Republicans’ budget proposal and calling on the leaders to “reject efforts to repeal the Inflation Reduction Act and end the threats to our businesses and hundreds of thousands of American clean energy jobs.” Read the letter

SO MUCH FOR THAT MIGRANT ‘SURGE’ — “Number of migrants fell 50% at U.S. southern border after immigration changes,” by AP’s Rebecca Santana “After Biden Predicted Chaos at the Border, a Quieter Than Expected Weekend,” by NYT’s Michael Shear

ELECTION DAY LINKS — Voters are going to the polls today in a trio of states that offer the latest signs for the electorate’s mood and preferences in the run-up to 2024.

In Kentucky: “Donald Trump is betting on Daniel Cameron,” by Brakkton Booker … Live updates from the Louisville Courier Journal 

In Pennsylvania: “Philadelphia Democrats poised to make history in expensive mayoral race,” by CNN’s Gregory Krieg … “A Pennsylvania Supreme Court primary could offer clues about the GOP’s direction in a key presidential battleground,” by CNN’s Fredreka Schouten … Live updates from the Philly Inquirer 

In Florida: “Daniel Davis and Donna Deegan go down to wire in Jacksonville mayor race,” by the Florida Times-Union’s David Bauerlein

Good Tuesday afternoon. Thanks for reading Playbook PM. Drop me a line: gross@politico.com.

 

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2024 WATCH

DeSANTIS GEARS UP FOR BATTLE — “DeSantis snaps back at Trump over Florida's six-week abortion ban,” by Gary Fineout: “Florida Gov. RON DeSANTIS on Tuesday took a swipe at DONALD TRUMP over abortion, chiding the GOP presidential frontrunner for failing to take a stance on what type of abortion restrictions he would be willing to support.”

Meanwhile, DeSantis’ would-be campaign picked up support from a number of state legislators — with a notable asterisk.

Fifty-one New Hampshire legislators threw their support behind DeSantis, according to Never Back Down, the super PAC supporting his run, NBC’s Dasha Burns and Jonathan Allen report. Among those 51 were four who endorsed Trump mere weeks ago. And while the PAC touted these endorsements as flips from Trump’s camp, when contacted by NBC, one of the endorsers sounded like she’s trying to toe the line between the two, at least for now.

“I’m endorsing both,” said state Rep. JULIET HARVEY-BOLIA. “DeSantis has a lot of promise for the future, and Trump is great now.”

Back in Tallahassee, DeSantis locked up the support of Florida’s top two GOP state legislators, NBC’s Matt Dixon reports. Florida House Speaker PAUL RENNER and Florida Senate President KATHLEEN PASSIDOMO publicly announced their support for his run — moves that are “expected to serve as the starting gun for a wave of endorsements from rank-and-file Florida Republican lawmakers.”

CONGRESS

AI ON THE BRAIN — OpenAI CEO SAM ALTMAN testified before the Senate Judiciary Committee this morning on the risks of artificial intelligence and the need for legislative safeguards. As the hearing began, Sen. RICHARD BLUMENTHAL (D-Conn.) played an AI-generated voice recording of his opening remarks, which were drafted using ChatGPT.

THE NEW GOP — Kevin McCarthy is under increasing pressure from his right flank to kick off impeachment proceedings against DHS Secretary ALEJANDRO MAYORKAS, CNN’s Annie Grayer, Melanie Zanona and Haley Talbot report — “putting the speaker in a bind as he tries to show they’re taking aggressive action on the border without alienating the party’s moderate, so-called majority makers.”

Signs of the growing furor: Rep. MARJORIE TAYLOR GREENE (R-Ga.) met with McCarthy on Monday to discuss the strategy, CNN details, while Majority Whip TOM EMMER (R-Minn.) recently made a public call for impeachment and there is an “understanding” for Rep. JIM JORDAN (R-Ohio) that impeachment is “inevitable.”

“But despite growing pressure across the conference, McCarthy has privately told members he wants more time for committees to hold hearings on the subject before they move on impeachment articles — a sign the full Republican Conference is not yet sold on the politically dicey prospect of impeachment.”

 

DON’T MISS POLITICO’S HEALTH CARE SUMMIT: The Covid-19 pandemic helped spur innovation in health care, from the wide adoption of telemedicine, health apps and online pharmacies to mRNA vaccines. But what will the next health care innovations look like? Join POLITICO on Wednesday June 7 for our Health Care Summit to explore how tech and innovation are transforming care and the challenges ahead for access and delivery in the United States. REGISTER NOW.

 
 

THE WHITE HOUSE 

PREPARING FOR TAKEOFF — Biden launches Asia trip this week aimed at taking on China,” by WaPo’s Matt Viser and Tyler Pager: “Biden is traveling to Australia and Papua New Guinea as well as Japan on the seven-day excursion, which is also aimed at bolstering support for Ukraine, combating climate change and tackling global inflation. But more than any other issue, the trip is meant to counter China, a global superpower that will not be at the meetings but will be very much top of mind.”

MORE POLITICS

ROLLINS IN THE DEEP — WILL ROLLINS, a Democratic congressional hopeful from Palm Springs, is relaunching his campaign to unseat Rep. KEN CALVERT (R-Calif.), framing his run as an antidote to Trumpism, our colleague Christopher Cadelago reports. “The first and foremost urgent threat that I see in this coming election is again to democracy and the rule of law,” Rollins, a former federal prosecutor, said in announcing his 2024 run Tuesday. “If Trump is the nominee, and we’ve got a House of Representatives that is unwilling to certify the results of a democratic election, everything America stands for collapses.”

THE DEBT LIMIT

THINKING THE UNTHINKABLE — “Default Fears Rattle Main Street Investors,” by WSJ’s Matt Grossman: “For individual investors, the prospect of a default undercuts the central appeal of Treasury debt, which is widely viewed as one of the most reliable of all assets. Financial textbooks treat a U.S. default as practically unthinkable.”

POLICY CORNER 

IT’S ELECTRIC  — “Biden administration announces nearly $11 billion for renewable energy in rural communities,” by AP’s Drew Costley: “Rural electric cooperatives, renewable energy companies and electric utilities will be able to apply for funding through two programs, U.S. Department of Agriculture Secretary TOM VILSACK said.”

AFTERNOON READ — “Why Undocumented Immigrants Struggle to Receive Organ Transplants,” BY NYT’S Joseph Goldstein

 

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BEYOND THE BELTWAY

HOW WE GOT HERE — NYT’s Maggie Astor digs into the influences that have shaped how conservative lawmakers across the country are fighting against gender transition care, elevating the voices of a small group of “people who transitioned and then changed course.” “Lawmakers have used these accounts to override objections from all major medical associations, which oppose bans on transition care, as well as testimony from the far larger number of transgender people who say transitioning improved their mental health.”

ABORTION FALLOUT — “Abortion laws triggered dozens of health complications, new report says,” by WaPo’s Caroline Kitchener: “While no nationwide data has yet emerged to show the extent of these complications, the report, being released Tuesday by researchers at the University of California San Francisco and shared with The Washington Post, offers a first-of-its-kind summary of anonymized examples from medical providers across the country.” Read the report

In the states:

 

GET READY FOR GLOBAL TECH DAY: Join POLITICO Live as we launch our first Global Tech Day alongside London Tech Week on Thursday, June 15. Register now for continuing updates and to be a part of this momentous and program-packed day! From the blockchain, to AI, and autonomous vehicles, technology is changing how power is exercised around the world, so who will write the rules? REGISTER HERE.

 
 

AMERICA AND THE WORLD 

DANCE OF THE SUPERPOWERS — “Move over, U.S. dollar. China wants to make the yuan the global currency,” by WaPo’s Meaghan Tobin, Lyric Li and David Feliba … “Can the World Make an Electric Car Battery Without China?” by NYT’s Agnes Chang and Keith Bradsher

SPY GAMES — “CIA urges Russians to share secrets with America in new video campaign,” by NBC’s Dan De Luce and Yuliya Talmazan

PLAYBOOKERS

MEDIA MOVE — Jack Gillum is now a reporter at WSJ, where he’ll focus on data-driven reporting. He previously was a technology reporter at Bloomberg News.

WHITE HOUSE DEPARTURE LOUNGE — Charlie Anderson is now executive VP for infrastructure at Arnold Ventures. He most recently was special assistant to the president for economic policy at the White House National Economic Council.

— Nahid Bhadelia has returned to Boston University to lead the Center for Emerging Infectious Diseases Policy and Research. She previously was senior policy adviser for the White House Covid-19 response team.

TRANSITIONS — Merav Ceren is now deputy policy director for the Senate Commerce Committee. She most recently was senior professional staff member for the House Oversight Committee. … Rep. Katherine Clark (D-Mass.) has added Emily Carwell as policy director and Ian Staples as national security adviser. Carwell previously was staff director of the Senate Democratic Policy and Communications Committee. Staples previously was acting deputy assistant secretary of defense for Senate affairs.

WELCOME TO THE WORLD — Brigid Richelieu, senior comms manager at the Financial Services Forum, and Adam Richelieu, senior salary cap and contract manager at the NFL Players Association, welcomed Charlie Richelieu on May 10. Pic

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Active founders make good investors, but do they make good VCs?

TechCrunch+ Newsletter
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TechCrunch+ Roundup logo

By Walter Thompson

Tuesday, May 16, 2023

Welcome to TechCrunch+ Tuesday

Welcome to TechCrunch+ Tuesday image

Image Credits: Getty Images

In professional sports, player-coaches can be extraordinarily effective: Celtics center Bill Russell won two NBA championships between 1966 and 1969.

A recent study suggests that this principle also applies to venture capital. "Recent data from AngelList, pulled for Flex Capital, shows that the founder-led funds raised through its platform outperformed the other funds raised on AngelList," reports Rebecca Szkutak.

"The reality is, we all have some other thing going on in our lives that we are passionate about," said Jeff Lu, general partner at Flex Capital. "Dual-threat CEOs, their hobby is to invest. At the same time, the experience makes them better CEOs and investors."

However, "it's important to note that women founders are largely left out of this trend," writes Rebecca.

"While having these side gigs is largely seen as a positive by VCs for male founders, multiple women founders have told TechCrunch+ that they aren't given the same luxury. In fact, they are advised against it."

Thanks very much for reading,

Walter Thompson
Editorial Manager, TechCrunch+
@yourprotagonist

Read More

How to avoid AI commoditization: 3 tactics for running successful pilot programs

How to avoid AI commoditization: 3 tactics for running successful pilot programs image

Image Credits: Unknown / Getty Images

Companies in search of AI-powered business solutions have a lot more options to choose from than they did a few months ago. But where does that leave startups that are trying to differentiate their offerings?

"The real moat is a combination of AI models trained on proprietary data, as well as a deep understanding of how an expert goes about their daily tasks to solve nuanced workflow problems," says Chaitanya Vaidya, co-founder of Deeprisk.ai.

In this TC+ article, he shares three methods AI startups can use to manage iterative pilot programs that create customer delight by studying user behavior.

"Leveraging deep relationships with customers in your domain is a simple, yet effective tactic," writes Vaidya.

Read More

TechCrunch Disrupt 2023

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Come to San Francisco from September 19 - 21 to learn something new and network with other founders and investors.

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Europe could be on the cusp of a golden era in robotics. Here's why.

Europe could be on the cusp of a golden era in robotics. Here's why. image

Image Credits: photoman / Getty Images

Even though the pandemic accelerated our shift to automation, funding to robotics startups decreased globally.

Last year, investors dropped almost $8.5 billion on the sector — a 42% decline from 2021 levels, with the deepest cuts coming from China and the U.S., where USD investment volume was slashed "by over 50%,” according to a report from Picus Capital.

Across Europe, however, funding only fell by “5% in the same period.” In a study shared with TC+, the firm analyzed “a few key trends driving the continent's recent power play in the robotics market,” including increased demand and a strong education pipeline.

“Although it's still early, we're convinced it's just the beginning of how Europe is finally beginning to find its place within the modern robotics ecosystem.”

Read More

Onboarding and automation: What fintechs can learn from big banks

Onboarding and automation: What fintechs can learn from big banks image

Image Credits: Sellwell / Getty Images

Onboarding a new fintech user comes with a unique set of challenges: you’ll need to capture and verify their personal information while you teach them how to use your service and induce them to stay engaged.

Getting new customers up to speed is essential, “but in an economic downturn, it becomes doubly so,” says Appian CTO Michael Beckley.

“Investors rapidly lose patience for startups that can't deliver growth and margin at the same time as regulators crack down on risk across the financial sector.”

Read More

Funding for women in climate tech is pitiful. What can be done about it?

Funding for women in climate tech is pitiful. What can be done about it? image

Image Credits: Atlas Studio / venimo [composite] / Getty Images

It's well understood that the scales are heavily tipped to favor men when it comes to startup funding, and climate tech is no exception.

According to Crunchbase, the amount of venture capital directed to women founders declined from 8.9% in 2022 to 6.9% in Q1 2023.

"We shouldn't have to separate women versus men when trying to provide a platform for a massive issue like climate innovation," said founder Kruppa Raghuraman.

Read More

11 investors predict a colorful, if difficult, future for psychedelic startups

11 investors predict a colorful, if difficult, future for psychedelic startups image

Image Credits: Bryce Durbin / TechCrunch

SaaS startups generally benefit from a loose regulatory environment, but for companies working to bring psychedelics into the mainstream, the struggle is real.

Although consumer attitudes are shifting, they must still navigate a complicated path under the watchful eye of health agencies and law enforcement.

Decriminalization is opening doors for startups working with cannabis, psilocybin, ketamine and other substances, but how are investors approaching this space?

Anna Heim surveyed several of them to learn more about what they're looking for, their long-term approach to the sector and how they prefer to be pitched:

  • Sa'ad Shah, managing partner, Noetic Fund
  • Ryan Zurrer, founder and director; Ozan Polat, partner; and Daniel Tarockoff, partner; Vine Ventures
  • Tim Schlidt, co-founder and partner, Palo Santo
  • Amy Kruse, chief investment officer, Satori Neuro
  • Clara Burtenshaw, partner, Neo Kuma Ventures
  • Greg Kubin and Matias Serebrinsky, general partners, PsyMed Ventures
  • Bek Muslimov and Nikolay Tretiyakov, co-founding partners, Leafy Tunnel

Read More

Read more stories on TechCrunch.com

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California Today: Oakland teachers’ strike ends

A tentative agreement between the school district and the educators' union includes several provisions meant to improve the lives of students and their families.
Author Headshot

By Soumya Karlamangla

California Today, Writer

It's Tuesday. Oakland students return to school after a nearly two-week teacher walkout. Plus, striking Hollywood writers disrupt TV's major ad event.

Olivia Michelson, a special-education teacher, center, with fellow Oakland Unified School District teachers on strike last week.Ray Chavez/Bay Area News Group, via Associated Press

Thousands of Oakland students will return to school today, after about 3,000 striking public school educators reached a tentative deal with district officials to raise salaries for teachers and take some unconventional steps to improve students' lives, including creating a Black reparations task force and using district property to help homeless students.

Teachers, librarians, nurses and other staff members in the Oakland Unified School District walked out on May 4, the latest in a string of labor standoffs at academic institutions in California. Over the nearly two weeks that Oakland educators were off the job, the district's 80 schools remained open to its 34,000 students, but there was no instruction.

Oakland's teachers, among the lowest paid in the Bay Area, secured raises of roughly 15 percent over three years under the agreement struck on Monday between the district, one of the largest in the state, and the Oakland Education Association, the union representing the educators. The starting salary for a first-year teacher in the district will increase to $62,696 from $52,905, according to a draft provided by the union.

District officials say they are investing $70 million in educators' wages in the deal, making progress toward a long-term goal of paying them "what they deserve," Superintendent Kyla Johnson-Trammell said.

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"We realize we're not there yet, but this is one crucial step toward getting there," Johnson-Trammell said at a news briefing Monday afternoon. "It's always been important to me to move O.U.S.D. from a history of crisis toward a culture of stability and achieving quality for every student, family and employee in our district. We have moved the needle significantly in that direction today."

The tentative deal, which still needs to be ratified by union members, also includes changes aimed at improving social and economic conditions for parents, teachers and students in Oakland Unified, including the creation of a Black reparations task force that will focus on providing services to schools where 40 percent or more of the students are Black. The district also agreed to include parents, teachers and staff members in decision-making about how to best spend millions of dollars in new state grant money for education, according to union officials.

These kinds of "common good" clauses — provisions that aren't directly related to workers' pay or benefits — were first seen during the 2012 Chicago teachers' strike, and have continued to pop up across the country in recent years, according to Steven K. Ashby, a labor studies professor at the University of Illinois, Urbana-Champaign, and co-author of a book about the seminal Chicago strike.

Striking teachers in North Carolina called for the state legislature in 2018 to expand Medicaid to improve community health. In West Virginia, teachers who walked off the job managed to secure raises for all state employees.

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This emerging trend reflects labor leaders' broader, more progressive view of the power and role of organizing, Ashby told me. "The 2012 strike shook up the labor movement," he said. "The basic idea is: Instead of just bargaining for ourselves, let's bargain for the community — it's a new twist."

Several districts in California have bargained over common-good demands recently, including Los Angeles Unified (where employees went on a three-day strike in March), San Diego Unified and West Contra Costa Unified, according to the Oakland Education Association.

The proposed Oakland contract includes a promise from the district to hire more full-time librarians and counselors and to use its resources to assist its 1,500 homeless students, either by helping them obtain housing vouchers or by directly providing free showers, laundry or housing. There's also a clause requiring that the district work with AC Transit, which serves Oakland and some surrounding areas, to offer free bus passes to all students in the district.

"We're teachers because that's what we want to do; we're trying to change the system because we lived through the system," Ismael Armendariz, president of the Oakland Education Association, said in a video posted on the union's Twitter page on Monday, adding, "We want to do better for everybody."

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Peter Ackerman led members of the Writers Guild of America picket line outside Radio City Music Hall on Monday, in an attempt to disrupt the biggest week in the TV ad world.Hilary Swift for The New York Times

The rest of the news

  • Hollywood strike: As the TV writers' strike enters its third week, demonstrators have set their sights on disturbing the "upfront" week, a gathering each year where media companies stage lavish events to promote their lineups to potential advertisers.
  • Silicon Valley Bank: The collapse of Silicon Valley Bank has drawn attention to the relationship between the Federal Reserve Bank of San Francisco and S.V.B.'s former chief executive, Greg Becker, who is preparing to testify before Congress.
  • Pension for aging boxers: The state-administered California Professional Boxers' Pension Plan is failing many fighters, The Los Angeles Times reports.
SOUTHERN CALIFORNIA
  • Laguna Woods shooting: A year after a gunman opened fire on Taiwanese immigrants at an Orange County church, the community is still mourning, The Orange County Register reports.
  • Homeless service workers: Frontline workers essential to solving Los Angeles County's homelessness crisis do not make enough money to afford housing themselves, The Los Angeles Times reports.
  • Los Angeles Philharmonic: Chad Smith, a veteran arts leader who has helped turn the Los Angeles Philharmonic into one of the most innovative orchestras in the nation, will leave his post to become president and chief executive of the Boston Symphony Orchestra.
CENTRAL CALIFORNIA
  • Big melt: Afternoon high temperatures well above normal for this time of year are hitting Fresno and the central San Joaquin Valley, setting the stage for potential flooding concerns in the Tulare Lake basin, The Fresno Bee reports.
NORTHERN CALIFORNIA
A fisherman at Marshall Gold Discovery State Historic Park.Brian Baer, via California State Parks

Where we're traveling

Today's tip comes from Mary Ann Mitchell, who lives in Folsom:

"One of my favorite things to do in spring is to take a drive in our Honda S2000. My husband and I put the top down and drive through the foothills. The most recent drive was to Coloma to visit the Marshall Gold Discovery State Historic Park. We cruised through the hills, spotted wildflowers and took a break at the park. We wandered the dirt paths, read about the gold mining town and sites, saw people panning for gold and watched the American River rush by. Boy, is it running fast now.

We found a wonderful spot for coffee called the Argonaut Farm to Fork Cafe and had lattes, tea and a cookie. After that treat, we got back in the car to continue the drive through the green hills, with the trees leafing and wildflowers blooming. A little drive is a great way to welcome spring! Get outside and find the joy in the world."

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.

Tell us

My colleague Jill Cowan reported on the enduring fame of P-22, a mountain lion that became an icon for Angelenos.

While there have been plenty of famous domesticated animals, we want to hear about any wild animals that became celebrities to you. Did you have a bird, bear or deer in your community that you became attached to? Tell us about it and why you became a fan. Email us at CAtoday@nytimes.com with your suggestions.

The northern lights as seen from Jackson.Dale Ahlers via KCRA

And before you go, some good news

The northern lights, or aurora borealis, are usually seen in the northernmost regions of the world. In recent months, however, they've become visible to those farther south, including to some central California residents last month.

That's not a fluke, but is part of a trend that will allow a wider swath of the world to get a rare glimpse of the phenomenon for the next few years, scientists say. The expanded visibility of the lights will peak in 2025.

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

Briana Scalia and Johnna Margalotti contributed to California Today. You can reach the team at CAtoday@nytimes.com.

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