McCarthy's ticking clock on debt talks

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May 24, 2023 View in browser
 
Playbook PM

By Bethany Irvine and Eli Okun

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RON’S SHOCK-AND-AWE NUMBER — Hours ahead of Florida Gov. RON DeSANTIS’ expected presidential campaign announcement (the time: 6 p.m.; the place: Twitter Spaces), NYT’s Shane Goldmacher, Jonathan Swan and Maggie Haberman have a look at the “battle plan” hatched by the pro-DeSantis super PAC Never Back Down.

The toplines:

  • “The group said it expected to have an overall budget of at least $200 million, including more than $80 million to be transferred from an old DeSantis state political account,” per the Times. 
  • Of that, $100 million will be dedicated to voter outreach efforts.
  • The group plans to add more than 2,600 field organizers to their staff by Labor Day, with an aim of knocking “on the door of every possible DeSantis voter at least four times” in New Hampshire, and “five times in the kickoff Iowa caucuses.” 

As for their big-picture strategy, JEFF ROE, the GOP strategist who helms the group, offered this koan-like take: “How do you beat [DONALD] TRUMP? Well, you beat Trump by beating Trump. And where Ron DeSantis has beaten Trump is by doing what Republican voters want him to do the most.”

Thought bubble: We can’t help but remember the run-up to the 2016 primaries, when a super PAC backing another Florida governor (JEB BUSH) trumpeted the fact it raised more than $100 million to help him defeat Trump. He didn’t. Will Never Back Down’s $200 million plan succeed where Right to Rise’s $100 million fell short?

House Speaker Kevin McCarthy speaks with reporters at the U.S. Capitol.

Speaker Kevin McCarthy said his negotiators will try to “finish up” debt ceiling talks today. | Francis Chung/POLITICO

DEBT LIMIT VIBE CHECK — As the country crawls ever closer to potential federal default, debt ceiling talks have consumed almost every corner of Washington:

On the Hill: “McCarthy wants to ‘finish up’ debt talks Wednesday, though sides remain far apart,” by Sarah Ferris and Jennifer Scholtes: “Speaker KEVIN McCARTHY on Wednesday dispatched his GOP negotiators to the White House to continue near-constant talks on a plan to avert a default, but offered little evidence that a deal was within reach.”

McCarthy said his negotiators will try to “finish up” talks today. (Reminder: House members are scheduled to leave town tomorrow for a weeklong recess for Memorial Day.)

“I firmly believe we will be able to get there,” the speaker said. “We’re not going to default, we're going to solve this problem. I will stay with it until we get done.”

But also dashed Dems’ hopes for a clean debt ceiling hike without spending cuts: “I will not put a clean debt ceiling on the floor. Why? Because we spent more than we’ve ever spent before and we have the highest debt we ever had.”

On the left: Among Democrats, anger is growing over the White House’s handling of negotiations, with some House members blaming “substandard” and “bungled” messaging from the administration and a “lack of visibility from the president,” WaPo’s Leigh Ann Caldwell and Theodoric Meyer report. They fear that the party “could be forced to eat most of McCarthy's demands.”

“‘I’ve never seen such a massive, surprising and consequential potential failure,’ said one Democratic member of Congress who, like others, spoke on the condition of anonymity to be candid. ‘We'll see where this comes out, but by definition we're only measuring success on how much we lost.’”

On the right: Rep. CHIP ROY (R-Texas) sent a memo to his fellow House members this morning outlining conservatives’ demands and encouraging the GOP to stick to their guns.

While House Republicans have generally rejected the accusation they are holding Democrats “hostage” with debt talks, Rep. MATT GAETZ (R-Fla.) has embraced the term, Semafor’s Joseph Zeballos-Roig writes. “I think my conservative colleagues for the most part support Limit, Save, Grow, and they don’t feel like we should negotiate with our hostage,” Gaetz told reporters.

X-DATE UPDATE — At the WSJ’s CEO Council Summit in London today, Treasury Secretary JANET YELLEN assured attendees she is “almost certain” the “X-date” when the country will run out of funding will be in early June, adding “will plan to update Congress shortly and try to increase the level of precision,” NYT’s Alan Rappeport reports.

SNAP JUDGMENT — Meanwhile, as House Republicans continue to push for imposing additional work requirements for some beneficiaries of aid like Medicaid or the Supplemental Nutrition Assistance Program, evidence shows “that work requirements often do not result in increased employment or income, but instead push more people off their benefits,” The New Republic’s Grace Segers reports.

Good Wednesday afternoon. Thanks for reading Playbook PM. Drop us a line at birvine@politico.com and eokun@politico.com.

 

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.

 
 

2024 WATCH

MARK YOUR CALENDARS — CNN’s next presidential town hall will feature NIKKI HALEY, moderated by Jake Tapper on June 4 in Iowa, the network announced.

RHETORIC WATCH — WaPo’s Isaac Arnsdorf, Josh Dawsey and Adriana Usero are up with a 30,000-foot view of the evolution of Trump’s rhetoric over the years, which has grown increasingly aggressive. Through an analysis of speeches over the years and interviews with aides, they write that the former president’s “positions have become even more extreme, his tone more confrontational, his accounts less tethered to reality,” as he eyes a second term. “Trump is sketching out the contours of a second term potentially more dangerous and chaotic than his first.”

CASH DASH — “Biden, Democrats plan beefed-up 50-state fundraising strategy to overwhelm GOP rivals,” by CNBC’s Brian Schwartz: “[President JOE] BIDEN's joint fundraising committee, the Biden Victory Fund, is now raising campaign cash with all 50 state Democratic Party committees, along with Washington D.C.’s local committee … The nationwide effort is shaping up to be larger than the strategy used during Biden’s 2020 run … The Biden team said the new effort represents the first time a candidate for president has joint fundraising agreements with every state party, along with D.C.”

MORE POLITICS

BEHIND THE SCENES — Former White House chief of staff MARK MEADOWS has been advising far-right House Republicans amid the debt ceiling fight and played a similar role during McCarthy’s battle for the speakership in January, CNN’s Melanie Zanona, Kristen Holmes, Jeremy Herb and Katelyn Polantz reveal. The McCarthy holdouts even considered nominating Meadows for speaker. It’s a “hands-on role” that “underscores how Meadows has managed to stay politically relevant even as he covertly navigates potential criminal exposure for his role in Donald Trump’s attempt to overturn the 2020 election.”

Meadows looms large in the Trump investigation — but Trump’s legal team hasn’t heard from him. The uncertainty is “fueling speculation about whether Meadows is cooperating with the special counsel’s probe – or if Meadows himself is a target of the investigation,” per CNN.

FIRST IN PLAYBOOK — Former White House chief of staff RON KLAIN is hosting a fundraiser reception for ANDREI CHERNY’s Arizona congressional campaign next month. Cherny worked for Klain under AL GORE in the 1990s and is running to flip a Trump-Biden swing district. The invite

POLICY CORNER 

OPIOID INVESTIGATION — “DEA’s failure to punish distributor blamed in opioid crisis raises revolving door questions,” by AP’s Jim Mustian and Joshua Goodman in Shreveport, La.: “The U.S. Drug Enforcement Administration has allowed one of the nation’s largest wholesale drug distributors to keep shipping highly addictive painkillers for nearly four years after a judge recommended it be stripped of its license for its ‘cavalier disregard’ of thousands of suspicious orders fueling the opioid crisis.”

A SAD SIGN OF THE TIMES — The White House has been working on plans for how it responds to increasingly common mass shootings in America, from the immediate aftermath to the long term, CNN’s Priscilla Alvarez reports. “An operation kicks into gear within the walls of the White House the moment an alert pops up of a potential mass shooting.”

ANTITRUST THE PROCESS — “Baby-Formula Makers Face FTC Investigation for Collusion,” by WSJ’s Liz Essley Whyte, Jesse Newman and Kristina Peterson: “The agency, in documents posted to its website, said it is looking into whether Abbott Laboratories and other formula manufacturers have ‘engaged in collusion or coordination with any other market participant regarding the bidding’ for state contracts.”

OH, AWESOME — “America’s nuclear secrets are vulnerable to fraudsters and spies, watchdog report says,” by NBC’s Ken Dilanian

 

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CONGRESS

INDEPENDENT SINEMA — Sen. KYRSTEN SINEMA (I-Ariz.) tells NBC’s Julie Tsirkin and Liz Brown-Kaiser in Tucson that immigration is her chief focus right now. “You mentioned some great accomplishments that I’m really proud to have achieved for Arizonans, but there is still a lot left on the table to be done,” she says, but she won’t get any more specific about whether she’s running for reelection.

FIRST PERSON — “As staff shield Feinstein from the press, a picture really is worth a thousand words,” by L.A. Times staff photographer Kent Nishimura: “Since her recent return, Sen. DIANNE FEINSTEIN (D-Calif.) and her staff have used every trick in the book to stay out of sight and at a distance from the press. … I’ve found myself regularly watching as [NANCY CORINNE] PROWDA runs interference and shields the senator from reporters, sometimes placing herself between them.” With the photos Team Feinstein didn’t want you to see

WAR IN UKRAINE 

STEERING CLEAR — “U.S. distances itself from pro-Ukraine incursion into Russia that involved American military vehicles,” by NBC’s Alexander Smith, Caroline Radnofsky and Matthew Mulligan

MEDIAWATCH 

RAKING IT IN — Having disavowed the funding it got from SAM BANKMAN-FRIED, Semafor has raised enough to replace that money — nearly twice over, NYT’s Benjamin Mullin scooped. The startup has raised $19 million from investors including JERRY YANG, HENRY KRAVIS, Stand Together and Gallup in its latest round of funding.

AMERICA AND THE WORLD

IMMIGRATION FILES — A growing pool of unaccompanied South American children — tens of thousands of them — is making the treacherous trek to try to reach the U.S., WSJ’s Kejal Vyas reports from Bajo Chiquito, Panama. “Migration authorities say as many as 400,000 people are expected to cross the Darién this year, with about 20% of them children, or 80,000 underage travelers.” The minors are highly vulnerable during the journey.

FEED THE WORLD — “U.S. announces $524 million in new aid for Horn of Africa drought, climate crisis,” by AP’s Edith Lederer at the U.N.

HOSTAGE NEGOTIATIONS — ALEXANDER VINNIK, the Russian co-founder of a bitcoin exchange who’s been charged with money laundering in the U.S., is pitching himself as a potential candidate for a prisoner swap, WSJ’s Louise Radnofsky and Dustin Volz report. It’s a VIKTOR BOUT-esque move that could come into play if the U.S. and Russia decide to trade detainees so EVAN GERSHKOVICH, PAUL WHELAN or other Americans can come home.

BEYOND THE BELTWAY

DANCE OF THE SUPERPOWERS GOES LOCAL — “‘The temperature is just so high right now’: Governors steer clear of China travel,” by Doug Palmer: “The new approach from state leaders is a reflection of just how low U.S.-China diplomatic relations have sunk in the last few years, and how politically toxic engagement with Beijing has become. But that doesn’t mean states don’t want or need Chinese trade and investment — and many remain willing to engage directly with companies that have cash to burn.”

CAUGHT IN THE CULTURE WARS — “Trans kids crave acceptance at school in a nation that often resists it,” by WaPo’s Laura Meckler: “[A]s Americans debate policies that affect trans Americans, there’s disagreement over how — or whether — to broach these issues in schools. … [W]hat trans Americans say is needed appears at odds with what many Americans appear comfortable providing.”

 

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.

 
 

PLAYBOOKERS

TRANSITIONS — Stefan Mychajliw is now deputy comms director for Vivek Ramaswamy’s presidential campaign. He most recently was VP of comms at Dog Strategies and is a former investigative broadcast journalist. … Howie Wachtel is now a senior director and head of U.N. and international organizations policy at Microsoft. He most recently was a senior director and head of global sanctions policy at PayPal, and is an NSC, State Department and U.S. mission to the U.N. alum.

BONUS BIRTHDAY: Ben Mullany of Rep. John Joyce’s (R-Pa.) office

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Send Playbookers tips to playbook@politico.com or text us at 202-556-3307. Playbook couldn’t happen without our editor Mike DeBonis, deputy editor Zack Stanton and producers Setota Hailemariam and Bethany Irvine.

Correction: Yesterday’s Playbook PM misstated the timeline for Alvin Herring’s retirement as executive director of Faith in Action. He plans to leave at the end of March 2024.

 

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California Today: Weird winter put Bay Area beekeepers to the test

Backyard beekeeping has risen in popularity in the Bay Area, but a brisk and rainy winter proved challenging for the novices.

By Anabel Sosa

It's Wednesday. Backyard beekeepers in the Bay Area have been challenged by the unusually stormy winter. Plus, a new opera reflects the Los Angeles Philharmonic at its finest.

Jill Lambie, left, and Karen Rhein inspect hive frames in a backyard in Berkeley.Anabel Sosa for The New York Times

You've probably heard of backyard chickens in California cities. But backyard beekeeping?

Hundreds of Bay Area residents have installed hives in recent years, and the hobby really took off when pandemic lockdowns forced people to stay home. Membership in the Alameda County Beekeepers Association alone has jumped to 500 people from around 60 in 2011, according to Robert Mathews, the association's new president.

"There are beehives and chickens in every third house, it seems," said Mathews, 57, a techie by day, bee enthusiast on weekends.

Jill Lambie, left, and Karen Rhein remove one hive box at a time.Anabel Sosa for The New York Times

Beekeepers say their hobby is a solitary, meditative pastime that helps them connect with nature despite their busy lives. I first learned about the growth of home beekeeping from my Oakland neighbor, a full-time nurse who has three hives in his backyard.

Tracy Fasanella, another Oakland resident, stumbled into beekeeping this year. She adopted two hives from a friend in San Leandro. A semiretired accountant, Fasanella said she felt fulfilled, and occasionally daunted, by the wealth of knowledge she was gaining from her bees.

"I had no idea what I would be getting myself into," she said. "Sometimes I think it's pretty scary having 40,000 bees around you."

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Jill Lambie, right, brushes bees off hive frames in an Oakland backyard.Anabel Sosa for The New York Times

The unusually rainy and cold winter in California this year created additional challenges for novices who are still trying to learn the ropes.

The wind kept knocking down beehives, killing some bees and leaving little food for those that survived. The unusually stormy winter also posed problems for bees that pollinate California's commercial crops elsewhere in the state.

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Jill Lambie, a hobbyist turned professional bee consultant in Oakland, said she had never witnessed a season quite as complicated as this past winter. Bees couldn't get enough food or pollen, which caused their larvae to fall ill. And opportunistic viruses are surfacing more than she's ever seen.

At a property in Berkeley last month, Jill Lambie puffed cool smoke on top of a hive frame to help calm the bees.Anabel Sosa for The New York Times

In the Berkeley Hills during the first sunny week of April, Lambie and her business partner, Karen Rhein, who call their consulting business BeeChicks, were performing mite checks on a group of hives. Mites can damage hives by infecting them with viruses. One type of virus carried by mites results in a bee being born with no abdomen, while another deforms their wings and leaves them too weak to fly.

"Eleven mites!" Rhein exclaimed, counting and recounting a sample.

To conduct a test, experts scoop a cup of bees from the hive, place them in a jar of sugar, and shake the container in a shallow tub of water to record how many mites fall out. If more than 15 mites are found, that signals that a hive could quickly be in distress and need to be treated.

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Anabel Sosa for The New York Times

While Rhein conducted the test, Lambie was on the phone with another Bay Area client who had called in a panic. The client's bees were swarming, fleeing the hive en masse.

She turned around and sighed. "This is going to happen so much this spring," she said.

Enjoy all of The New York Times in one subscription — the original reporting and analysis, plus puzzles from Games, recipes from Cooking, product reviews from Wirecutter and sports journalism from The Athletic. Experience it all with a New York Times All Access subscription.

A doctor treated a patient at Providence Mission Hospital in Mission Viejo.Shannon Stapleton/Reuters

The rest of the news

  • Medi-Cal: A new legislative proposal to increase reimbursement rates for Medi-Cal providers could expand access to care for low-income Californians, CalMatters reports.
  • Walgreens settlement: Walgreens Boots Alliance reached a tentative settlement with consumers who received Theranos blood tests in California and claimed that the company was "willfully blind" to fraud at the testing start-up, The Los Angeles Times reports.
  • Paramedic sex assault: A lawsuit filed against the ambulance company American Medical Response West in California court accuses the company of lax oversight that allowed a paramedic to sexually assault two women in their 80s, The Associated Press reports.
  • New homelessness adviser: The former San Diego homeless director, Hafsa Kaka, has started her new job as Gov. Gavin Newsom's senior adviser on homelessness, The San Diego Union-Tribune reports.
SOUTHERN CALIFORNIA
  • Los Angeles Philharmonic: "Stranger Love," a six-hour opera that premiered at the Walt Disney Concert Hall in Los Angeles over the weekend after more than a decade in development, was "the L.A. Philharmonic at its finest," our critic writes.
  • Shooting: One person was killed and another injured in a shooting on Tuesday at the downtown San Diego library, The Los Angeles Times reports.
CENTRAL CALIFORNIA
  • Tulare Lake refilled, but not flooding: Officials say Tulare Lake is now unlikely to flood surrounding areas because of improved weather conditions and quick planning, The Associated Press reports.
NORTHERN CALIFORNIA
  • Twitter headquarters: Elon Musk has signaled that Twitter's headquarters may not stay in San Francisco, The Associated Press reports.
  • Water and sewer bills: Ahsha Safaí, a member of San Francisco's Board of Supervisors, wants to delay the city's adoption of new water and sewer rates over concerns that they would be too expensive for many people, The San Francisco Chronicle reports.
Daniel Dorsa for The New York Times

Where we're traveling

Today's tip comes from Levie Isaacks:

"I live in Sebastopol, where my favorite trip into the city is from Freestone through Valley Ford to Petaluma and Highway 101. The bright green rolling hills with clumps of California poppies and happy cows is an exhilarating, visceral experience this time of year. It's amazingly beautiful."

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.

California poppies in Los Angeles.Alisha Jucevic for The New York Times

And before you go, some good news

The New Yorker writer Dana Goodyear recently published a lovely essay about California's superbloom.

The year that Goodyear moved to Los Angeles, in the winter of 2004-05, was among the region's rainiest, and her memories of that time are of slick roads and fallen palm fronds. She remembers understanding Los Angeles as a place that was "abundant, intoxicating, unmoored."

This year's spring is a return to that time, as gentle slopes have turned purple and yellow and California poppies peek through sidewalk cracks, she writes:

"It's hard to stay optimistic in a dry landscape. A desiccated city is a metaphor for dysfunction, and a mirror of it. It looks like the end of a story. The failure of an ill-conceived experiment. Proof of unsustainability. But, when a desert comes alive, the story opens out again. There is, alongside the simple joy of seeing so much color, a sense of possibility. The chaos feels generous, and generative."

Thanks for reading. We'll be back tomorrow.

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

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