| | | | |  | | By Garrett Ross | | | DEBT DEAL LATEST — As D.C. circles around striking a debt limit deal, key GOP negotiators gave small bites of updates to the press corps. “I thought we made progress last night. We’ve got to make more progress now,” Speaker KEVIN McCARTHY said this morning, adding that he caught up with Rep. GARRET GRAVES (R-La.) on a bike ride this morning. And, as we said in Playbook this morning, McCarthy dropped Washington’s favorite phrase as deals reach the finish line: “Nothing’s agreed to until it is all agreed to.” Graves, meanwhile, said not much progress was made last night after 7:30 p.m., per CNN’s Haley Talbot. And Rep. PATRICK McHENRY (R-N.C.) expressed frustration with leaks — another classic negotiator stance — and said he had not met with the White House yet today. In a gaggle outside McCarthy’s office after noon, McHenry said: “There is forward progress. But each time there’s forward progress, the issues that remain become more difficult and more challenging.” (h/t CNN’s Manu Raju) But here is perhaps the best summary of the mood on the Hill, via Talbot:
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Twitter screenshot | And there’s this … via AP’s @FarnoushAmiri: “A Capitol Hill tour guide just walked past reporters staking out McCarthys office and said, ‘Over here on your right, you’ll see a nation on the brink of economic collapse.’”
|  Texas AG Ken Paxton is on the brink of impeachment at the hands of his own party. | Brandon Bell/Getty Images | DEEP IN THE HEART — Everything’s bigger in Texas — including intraparty infighting. Republicans in the Texas House of Representatives are taking AG KEN PAXTON to task, filing 20 articles of impeachment against the conservative Republican over allegations of bribery, unfitness for office and abuse of public trust. Though the recommendation for impeachment was made by a bipartisan House panel, this effort is driven and blessed by Republicans in the chamber. The context: The Texas Tribune’s Patrick Svitek has a nice piece detailing the ramifications of the extraordinary developments in the GOP-on-GOP battle that is attracting national attention. “In revealing it had been secretly investigating Paxton since March — and then recommending his impeachment on Thursday — a Republican-led state House committee sought to hold Paxton accountable in a way the GOP has never come close to doing. It amounted to a political earthquake, and while it remains to be seen whether Paxton’s ouster will be the outcome, it represents a stunning act of self-policing.” The procedure: The Texas Tribune’s María Méndez and Alex Ford have a very helpful explainer for everything you need to know about what the process looks like in Texas. “Impeaching an official requires a simple majority vote of the House. If that happens, the Texas Senate can carry out a trial, in which senators take an oath to be impartial. Two-thirds of the senators present must vote to convict an impeached state leader, per state law. If that happens, the official is then permanently removed from office.” Who could back Paxton: AP’s Jim Vertuno and Jake Bleiberg note that Paxton is almost sure to have some allies in the legislature. But at least one of them is a little messy. “A likely one is his wife, ANGELA, a two-term state senator who could be in the awkward position of voting on her husband’s political future. It’s unclear whether she would or should participate in the Senate trial, where the 31 members make margins tight.” And adding to all the drama, “Paxton’s impeachment deals with an extramarital affair he acknowledged to members of his staff years earlier.” What happens next: The legislative session in Texas is set to end on Monday. But even so, “the House can continue the proceedings or adjourn and reconvene for impeachment proceedings at a later date,” the Tribune writes. If the House does indeed vote to impeach Paxton, he will be “immediately suspended, or temporarily removed” while the state Senate holds a trial. Gov. GREG ABBOTT could appoint a temporary replacement. FWIW: The Republican Party of Texas today issued a statement decrying the House’s impeachment proceedings as “the latest front the the Texas House’s war against Republicans to stop the conservative direction of our state.” (Note: The GOP controls 85 of the Texas House’s 150 seats.) Read the full statement Happy Friday afternoon. Programming note: Playbook PM will be off on Monday in observance of Memorial Day. Thanks for reading. Drop me a line at gross@politico.com. MYPILLOW TALK — “How I Won $5 Million From the MyPillow Guy and Saved Democracy,” by BOB ZEIDMAN in POLITICO Magazine
| | | | A message from Altria: Public support for Tobacco Harm Reduction. Tobacco Harm Reduction is an established public health strategy that supports transitioning adult smokers who can’t or won’t stop smoking to potentially less risky tobacco products. 82% of adults 21+ surveyed think it is important for the FDA to focus on making smoke-free tobacco products available to adult smokers to help them switch from cigarettes. See the poll results here. | | | THE ECONOMY INFLATION NATION — One of the Fed’s preferred inflation gauges released its latest reading this morning, showing that inflation was still up for the month of April. The details: “The personal consumption expenditures price index, which measures a variety of goods and services and adjusts for changes in consumer behavior, rose 0.4% for the month excluding food and energy costs, higher than the 0.3% Dow Jones estimate,” CNBC’s Jeff Cox writes. “On an annual basis, the gauge increased 4.7%, 0.1 percentage point higher than expected, the Commerce Department reported.” 2024 WATCH THE CASH DASH SPLASH — “Gusher of cash reshapes GOP presidential contest,” by NBC’s Ben Kamisar and Scott Bland: “Republican candidates and groups have already spent almost $30 million on ads in the party's primary this year, according to data from the ad-tracking firm AdImpact. When they cross that threshold Saturday, that'll be 50 days earlier than Democrats hit that spending mark during their open presidential primary four years ago, and a full 137 days earlier than it took Republicans to cross the $30 million threshold during their last open presidential race, in October 2015.” ENDORSEMENT WATCH — Florida Gov. RON DeSANTIS has picked up the support of four more New Hampshire state legislators, The Daily Caller’s Henry Rodgers reports. JAN. 6 AND ITS AFTERMATH OATH KEEPERS UPDATE — “Judge to sentence 2 Oath Keepers members after handing down punishment for group’s founder,” by AP’s Michael Kunzelman and Lindsay Whitehurst: “U.S. District Judge AMIT MEHTA will sentence Army veterans JESSICA WATKINS and KENNETH HARRELSON after handing Oath Keepers founder STEWART RHODES the longest prison sentence so far in more than 1,000 criminal cases brought in the Jan. 6 riot. Watkins and Harrelson were acquitted of seditious conspiracy but convicted of obstructing Congress in the trial alongside Rhodes and other members of the group that ended in November.”
| | | | 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. | | | | | MORE POLITICS EPSTEIN CONNECTION — “JPMorgan kept Epstein as client for years after warnings, deposition shows,” by WaPo’s Jacob Bogage and Aaron Gregg: “‘Oh boy,’ MARY ERDOES wrote in a 2011 email to a fellow executive at JPMorgan Chase, where [JEFFREY] EPSTEIN was a client for 15 years. It was at least the sixth time Erdoes, who leads the bank’s asset and wealth management division, had been alerted to Epstein’s criminal or civil legal trouble for sex crimes. She had also been informed as early as 2006 that JPMorgan flagged suspicious activity on his accounts.” WORKER WORRIES — “Anxious federal workers find few answers on debt ceiling,” by WaPo’s Lisa Rein: “If a default happens, the government could halt many day-to-day operations, from staffing national parks at the start of tourist season to research on the newest coronavirus vaccines at the National Institutes of Health. Millions of federal contractors could go unpaid. Benefit checks for veterans and other disabled Americans may not go out. And unlike a shutdown — an unpleasant but predictable stoppage that federal employees have become accustomed to weathering — no one knows how a default in Washington would actually play out.” POLICY CORNER THE REAL-WORLD IMPACT — “Hundreds of Thousands Have Lost Medicaid Coverage Since Pandemic Protections Expired,” by NYT’s Noah Weiland: “The large number of terminations on procedural grounds suggests that many people may be losing their coverage even though they are still qualified for it. Many of those who have been dropped have been children.” FRAUD FILES — “How a Pandemic-Era Program Became a Magnet for Fraud,” by NYT’s Alan Rappeport: “The Employee Retention Credit has spawned a cottage industry of firms claiming to help businesses access stimulus funds, often in violation of federal rules.” AP GETS RESULTS — “After yearslong delay, DEA revokes license of wholesale drug distributor over opioid crisis failures,” by AP’s Joshua Goodman and Jim Mustian: “The action against Morris & Dickson Co. that threatens to put it out of business came two days after an Associated Press investigation found the DEA allowed the company to keep shipping drugs for nearly four years after a judge recommended the harshest penalty for its ‘cavalier disregard’ of rules aimed at preventing opioid abuse.” BEYOND THE BELTWAY PROGRESS REPORT — “Anniversary of George Floyd’s killing: Changes were made, but short of ‘reckoning’ on racial justice,” by AP’s Aaron Morrison and Steve Karnowski
| | | | 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 CHILLING ON CHINA — “China, Pushing Ukraine Cease-Fire, Gets Cool Reception in Europe,” by WSJ’s Bojan Pancevski and Kim Mackrael NEWS ANALYSIS — “If a Divided Germany Could Enter NATO, Why Not Ukraine?” by NYT’s Steven Erlanger SOUND FAMILIAR? — “On Erdogan Campaign Trail, Invoking God, Reciting Poetry, Bashing Foes,” by NYT’s Ben Hubbard and Gulsin Harman in Istanbul MEDIAWATCH WILD STORY — “Tucker Carlson, Fox News hacks tied to FBI search of Tampa council member’s home,” by the Tampa Bay Times’ Dan Sullivan, Christopher Spata and Justin Garcia: “The Times obtained a letter Thursday that a Tampa federal prosecutor sent to Fox News, which describes an ongoing criminal probe into computer hacks at the company, including unaired video from TUCKER CARLSON’s show.” VALLEY TALK HIVEMIND — “Elon Musk’s Neuralink Gets FDA Approval for Study of Brain Implants in Humans,” by WSJ’s Joseph De Avila: “Neuralink plans to open clinics where surgical robots will implant the devices into the brains of patients. … Clinical testing proving the Neuralink device is safe and effective long-term would be necessary before a brain-computer interface could be introduced to patients, neurotechnology experts have said.” PLAYBOOKERS MEDIA MOVE — Former White House press secretary Sean Spicer has joined NewsNation as a contributor, The Hill’s Dominick Mastrangelo reports. TRANSITIONS — Peter Orszag will be CEO and board director of Lazard, succeeding Kenneth Jacobs, who will be executive chair of the board. Orszag currently is Lazard’s CEO of financial advisory. … James Kwon is now comms director for Rep. Seth Magaziner (D-R.I.). He previously was digital director and press secretary for Rep. Jimmy Gomez (D-Calif.). … Sam West will be policy adviser for Sen. Bill Cassidy (R-La.). He was previously legislative director for Rep. Mike Kelly (R-Pa.). WEEKEND WEDDING — Jordan Hoshko, chief of staff of POLITICO’s media business, and Andrew MacDowell, senior director of data science and analytics at Procurated, got married Saturday at Herrington on the Bay in North Beach, Md. They met through mutual friends at a party. Pic BONUS BIRTHDAY: Dallas Morning News’ Noor Adatia Did someone forward this email to you? Sign up here. 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.
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