McCarthy moves on ouster maneuver

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Oct 03, 2023 View in browser
 
Playbook PM

By Garrett Ross

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

Speaker Kevin McCarthy is set to bring forward a resolution that could end in his ouster this afternoon. | Francis Chung/POLITICO

Speaker KEVIN McCARTHY is putting his speakership on the line today.

The embattled GOP leader is expected to call up a vote on the House floor this afternoon on the motion to vacate that Rep. MATT GAETZ (R-Fla.) has threatened against him, setting up a high-stakes showdown between the Republican rivals that could end in McCarthy’s ouster from power.

The state of play: McCarthy told his conference in a private meeting this morning that he would bring the resolution (which is actually a motion to table the motion to vacate) up this afternoon. McCarthy can manage no more than four Republican defections on the votes, assuming every Democrat declines to support McCarthy.

So what about the Dems? House Minority Leader HAKEEM JEFFRIES and his fellow Democrats won’t swoop in to save McCarthy, the Democratic leader stated in a Dear Colleague letter this morning, leaving the decision entirely in Republicans’ hands.

“We are ready, willing and able to work together with our Republican colleagues, but it is on them to join us,” Jeffries told reporters today. Read Jeffries’ Dear Colleague letter 

There was chatter that a cohort of centrist Dems might join forces with McCarthy to pad his numbers, but our colleagues Sarah Ferris and Nicholas Wu spoke with half a dozen of the key faction this morning, who said that McCarthy had “given them no incentive to salvage his besieged speakership.”

McCarthy’s mood: Speaking to reporters at the Capitol this morning, McCarthy plainly stated the difficult math that he faces:

“If five Republicans go with Democrats, then I’m out,” he said, prompting ABC’s Rachel Scott to reply: “That seems likely.” McCarthy responded, simply: “Probably so.”

What else McCarthy is saying:

  • “They haven’t asked for anything. I’m not going to provide anything,” he told CNBC, regarding Democrats potentially brokering a deal to save him
  • “That doesn’t work,” he told reporters at the Capitol today about a potential power-sharing agreement with Democrats

The anti-McCarthy group: Reps. ELI CRANE (R-Ariz.), BOB GOOD (R-Va.), TIM BURCHETT (R-Tenn.) and Gaetz.

Interestingly, Rep. VICTORIA SPARTZ (R-Ind.) said in a post on X that she will vote to allow the motion to vacate to come up on the floor for a vote, but she ultimately won’t vote to oust McCarthy once the motion to vacate is brought forward.

Others to watch:

So what comes next? Should McCarthy indeed go down on the motion to vacate, a process for choosing a new speaker would commence. Our colleagues report that no clear name has emerged as a replacement for McCarthy.

And then there’s this: “Many Republicans have vowed to renominate McCarthy to the position and not allow the House to adjourn until he retakes the speakership,” WaPo’s Marianna Sotomayor, Amy Wang, Leigh Ann Caldwell and Paul Kane report.

Follow along with our ace Hill team for all the latest drama on Inside Congress Live

HEADS UP — “Hunter Biden pleads not guilty on federal gun charges,” by NBC’s Katherine Doyle in Wilmington, Del.

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

 

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CONGRESS

WELCOME TO WASHINGTON — LAPHONZA BUTLER’s selection by California Gov. GAVIN NEWSOM to fill the seat of the late Sen. DIANNE FEINSTEIN was a shocker to many close political watchers — and, it turns out, something of a surprise to Butler herself. She told the LA Times’ Taryn Luna and Hannah Wiley that she was in Colorado late Saturday night for a work trip when she found out from Newsom about the decision. “I had not talked to anyone: Not the governor, not the governor’s team,” Butler told LAT. “I was unaware that my name was even seriously being considered. And it’s been a sort of whirlwind ever since.” She will be sworn in at 3 p.m. today.

WHERE THE GRASS IS GREENE-R — “In Marjorie Taylor Greene’s backyard, shutdown politics is complicated,” by The Atlanta Journal-Constitution’s Greg Bluestein

2024 WATCH

THE TRUMP TEST — When Trump was in the White House, he privately mused about using military force to strike against Mexican drug cartels without Mexico’s consent — an idea that was panned by his advisers at the time given its drastic and inflammatory nature. Fast-forward to now: “Trump’s notion of a military intervention south of the border has swiftly evolved from an Oval Office fantasy to something approaching Republican Party doctrine,” NYT’s Jonathan Swan, Maggie Haberman, Charlie Savage and Emiliano Rodríguez Mega write.

PROTECTING THEIR PIECE — “RNC warns Christie and Ramaswamy not to hold joint Fox News segment,” by Meridith McGraw: “The warning, relayed to POLITICO by a person familiar with the conversations, had an effect. The candidates and network have decided to change up the format. Instead of appearing side-by-side, they will now sit for two separate, back-to-back segments. The RNC approved of the new format, according to another person familiar with the matter and granted anonymity to discuss it freely.”

 

GROWING IN THE GOLDEN STATE: POLITICO California is growing, reinforcing our role as the indispensable insider source for reporting on politics, policy and power. From the corridors of power in Sacramento and Los Angeles to the players and innovation hubs in Silicon Valley, we're your go-to for navigating the political landscape across the state. Exclusive scoops, essential daily newsletters, unmatched policy reporting and insights — POLITICO California is your key to unlocking Golden State politics. LEARN MORE.

 
 

ALL POLITICS

SPEAKING THE LANGUAGE — Campaign operatives are starting to target young voters using Spanglish — the colloquial mix of Spanish and English — in an effort to tap into a voting bloc that could swing things for certain candidates in 2024. “Among those introducing Spanglish in their messaging is Bold PAC, the campaign arm of the Democratic-aligned Congressional Hispanic Caucus,” WaPo’s Mariana Alfaro reports, noting that the advantage is that “the U.S. political system has a vocabulary that at times can be difficult to translate to Spanish without sounding awkward or forced.”

JUDICIARY SQUARE

MR. AND MISSES SMITH — DOJ special counsel JACK SMITH gets the WaPo Style section treatment, from Manuel Roig-Franzia, who digs into the prosecutor’s past. The topline takeaway? “The unrelenting aggressiveness that is his greatest strength is also Smith’s greatest weakness.”

“Alongside his legal victories — and there have been many in three decades of prosecutorial activity large and small (he once nabbed a birthday party clown turned stickup artist dubbed the Lotto Bandit) — his willingness to push into areas that more risk-averse prosecutors would not have touched has undone him more than once. In some of his biggest cases — going after senators, a governor, a notorious cop killer — he reached for an outcome that he could not achieve.”

COMING TO THE COURTS — “Young People Left in Limbo as Battle Over Transgender Care Shifts to Court,” by NYT’s Ernesto Londoño and Mitch Smith: “The political and legal chaos is likely to be resolved by the U.S. Supreme Court, which currently has a 6-to-3 conservative majority and has long been an arbiter on questions of the rights of L.G.B.T.Q. people. In the meantime, transgender minors across the country are left in limbo, unsure if they will be able to fill their next prescription for puberty blockers or hormone therapy.”

SCOTUS WATCH — “Supreme Court Case Could Upend Rules for Mortgages, Credit Cards and More,” by WSJ’s Andrew Ackerman and Jess Bravin: “A lawsuit before the Supreme Court on Tuesday could threaten more than a decade’s worth of rules governing the mortgage industry, credit cards, student-loan companies and more. A group of payday lenders will argue before the court that some rules written by the Consumer Financial Protection Bureau are invalid because the funding system Congress designed for the agency in 2010 was unconstitutional.”

 

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BEYOND THE BELTWAY

AFTERNOON READ — “How red-state politics are shaving years off American lives,” by WaPo’s Lauren Weber, Dan Diamond and Dan Keating: “Americans are more likely to die before age 65 than residents of similar nations, despite living in a country that spends substantially more per person on health care than its peers. Many of those early deaths can be traced to decisions made years ago by local and state lawmakers over whether to implement cigarette taxes, invest in public health or tighten seat-belt regulations, among other policies, an examination by The Washington Post found.”

Read the mainbar: “An epidemic of chronic illness is killing us too soon,” by WaPo’s Joel Achenbach, Dan Keating, Laurie McGinley, Akilah Johnson and Jahi Chikwendiu

DANCE OF THE SUPERPOWERS — “A Rural Michigan Town Is the Latest Battleground in the U.S.-China Fight,” by NYT’s Alan Rappeport: “Firestorms over Chinese investments, like a battery factory in Green Charter Township, are erupting as officials weigh the risks of taking money from an adversary.”

Related read: “China Is Suffering a Brain Drain. The U.S. Isn’t Exploiting It,” by NYT’s Li Yuan

POLICY CORNER

FED UP — “The Fed Seeks to Up Its Influencer Status,” by WSJ’s Suryatapa Bhattacharya: “‘Hi, I’m Jay Powell.’ JEROME POWELL, the chairman of the Federal Reserve and one of the most influential people in the country, launched the central bank’s new Instagram account with a video, known as a reel, announcing its newest social-media outreach.” Watch the video

GIVE ME LIBERTY — “Liberty University broke safety laws for years, government asserts,” by WaPo’s Susan Svrluga

 

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PLAYBOOKERS

MEDIA MOVES — Amy Fiscus is joining WaPo as deputy national editor. She previously was deputy editor of The Morning at the NYT. The announcement Kyle Pope, who has been editor and publisher of the Columbia Journalism Review since 2016, is leaving to join Covering Climate Now, an organization that works with newsrooms and reporters to emphasize climate coverage. More from the AP

TRANSITIONS — Payton Fuller is now press assistant for House GOP Conference Vice Chair Mike Johnson (R-La.). She previously was staff assistant for Sen. Steve Daines (R-Mont.). … Jon Wolfsthal is now director of global risk at the Federation of American Scientists. He previously was a senior adjunct fellow at the Center for a New American Security in the Transatlantic Security Program.

WEEKEND WEDDINGS — Sam Finnerty, a partner and government contracts lawyer at PilieroMazza, and Jennie Wolfe, CEO of WellWolfe Coaching & Training, got married Saturday in Cape Charles, Va. They met in D.C. through mutual friends. PicAnother pic

— Kate Vibbert, senior political strategist at The New Media Firm, and Danny Shelton, who works at Aisle 518 and is a Mark Kelly alum, got married Saturday at Blue Hill Farm in Waterford, Va. Justin Jenkins, who introduced the couple at Ivy & Coney in 2017, officiated. PicSPOTTED: Rob Flaherty, Brenna Crombie, Josh Cook and Anna Tuman, Gladis Merino, Jeff Holmes, Toby and Laura Fallsgraff, Phil Kim, Atanu Chakravarty, Jonah Allon, Lily Ross, Sarah Flowers and Dylan Arant.

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Correction: Yesterday’s Playbook PM misidentified a Democrat running in a swing New Jersey House seat. Her name is Sue Altman.

 

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How to raise a Series A in today’s market

TechCrunch+ Newsletter
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By Walter Thompson

Tuesday, October 03, 2023

Welcome to TechCrunch+ Tuesday

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Image Credits: Eric Slomonson/The Photo Group/TechCrunch / Flickr under a CC BY 2.0 license.

Follow-on financing has become harder to raise, which leaves startups striving for a Series A in a real bind.

Pre-downturn, startups with strong growth could be more confident about finding additional funds. Today's investors are looking for product-market fit and hard numbers that trend toward profitability.

If you're fundraising and someone wants to advise you on "storytelling," you have my permission to skip that meeting and work on your data room instead.

At TechCrunch Disrupt, Tim De Chant interviewed three VCs to get their advice for founders who want to reach the next level:

  • Maren Bannon, co-founder and managing partner, January Ventures
  • James Currier, general partner, NFX
  • Loren Straub, general partner, Bowery Capital

Thanks for reading; have a great week!

Walter Thompson
Editorial Manager, TechCrunch+
@yourprotagonist

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I once found myself driving a hybrid vehicle with a low battery and an empty tank in a rural area. I made it to a gas station by driving about 5 miles per hour.

The CFOs and VPs of finance out there are nodding right now: They know that trying to coast as far as you can with limited resources is stressful.

TC+ guest columnist Mohit Agarwal says scaling startups need to consider every savings option at hand, like negotiating with vendors or buying short-dated Treasuries.

"Some boards will prohibit the buying of any form of securities, but most will be on board. After all, why not when there is a riskless 5%+ rate of return to be had."

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How our new AI feature earned 5% adoption in its first week

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Rolling out a new AI-enabled product feature is great — as long as it creates real value for customers.

In a post for TC+ that deconstructs the product development and engineering process they used, Gigasheet co-founder and CTO Garth Griffin explains why his company's second AI feature "achieved a 10x better return on engineering effort."

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​​SBF's trial promises to be just as riveting as the rest of the FTX drama

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Under Sam Bankman-Fried’s leadership, crypto company FTX reached a $32 billion valuation before it collapsed and dragged the industry down with it.

Today, the former CEO is on trial in NYC, where he’s charged with fraud and conspiracy. If found guilty, the 31-year-old could be sentenced to more than 100 years behind bars.

“Still, there's a lot of speculation about what the case could look like,” writes Jacquelyn Melinek. “So to get to the meat of the matter, we spoke to a handful of legal experts on what to expect.”

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VC Office Hours: How data can help improve social impact investing

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Dominic Madori-Davis interviewed senior director of investment for Pivotal Ventures Erin Harkless Moore to learn more about how the "part-venture fund, part-philanthropic organization" operates:

In a world where so many investors prioritize vibes, why focus on data and analytics for social impact investing?

You can't manage what you don't measure. We see the value in tracking the ownership percentages of diversity in our demographic data across the organizations. Looking at that data will let us know if we're making progress.

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According to a new survey from Battery Ventures, people who buy enterprise software aren’t pinching pennies as hard as they used to.

“Contract approval timelines are no longer stretching longer, and focus on cutting SaaS spend more generally is fading,” write Anna Heim and Alex Wilhelm in The Exchange.

“The kicker is that if you are selling AI-related software tools or tooling, you are probably having a better year than your friends who are building non-AI products.”

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California Today: The state’s newest senator prepares to be sworn in

Laphonza Butler, president of Emily's List and a former labor leader, was named by Gov. Gavin Newsom to fill the seat left vacant by Dianne Feinstein's death.

It's Tuesday. What to know about California's newest senator. Plus, Dianne Feinstein will lie in state at San Francisco City Hall this week.

Laphonza Butler has never held elective political office but has been a fixture in California politics for years, rising to prominence through labor activism.Chip Somodevilla/Getty Images

Less than five days after the death of Dianne Feinstein, California's newest U.S. senator is scheduled to be sworn in.

Gov. Gavin Newsom chose Laphonza Butler, president of Emily's List and former leader of the state's largest labor union, to fill the Senate seat that Feinstein, a fixture of American politics, held for three decades. Vice President Kamala Harris is expected to swear in Butler at the U.S. Capitol today.

Butler's appointment matters in several big ways.

With the Senate narrowly divided, Democrats are eager to fill the vacant seat quickly with another Democrat. Butler once worked as an adviser to Harris during her 2020 presidential bid. And she'll be the first openly L.G.B.T.Q. senator from California. (You can read more about Butler here.)

Newsom pledged in early 2021 — after naming Alex Padilla to succeed Harris in the Senate — that if another seat were to become vacant, he would name a Black woman. He kept that promise by naming Butler, the second Black woman to represent the state after Harris.

Before Feinstein died, three high-profile Democratic lawmakers had already entered the 2024 race to succeed her: Representatives Adam Schiff, Katie Porter and Barbara Lee have all been campaigning for months. Schiff appears to be in the strongest position of the three financially, with $30 million raised, compared with $10.4 million for Porter and $1.4 million for Lee, according to the latest campaign filings.

Some Democrats urged Newsom to name Lee, who has long been a leader in the state's Black community, to finish out Feinstein's term. But the governor said that he did not want to tip the scales in the race by appointing one of the contenders.

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Butler, 44, will serve until California voters elect a senator in November 2024. She could run in that election herself, but she has not yet indicated whether she would do so. Newsom said on Monday that he had told Butler she could make her own decision; that seemed to be a shift in stance for the governor, who until then had called the appointment an interim one.

On Monday, Newsom tried to focus on what he called Butler's impressive personal history and deep knowledge of issues important to the state, including abortion rights, worker's rights and the aging population. He dismissed talk about flip-flopping on the issue as "a side show on top of a side show, a hypothetical on top of a hypothetical."

"That's rearview mirror stuff," he said at a news conference at the Fairmont Hotel in San Francisco. "I have an incredible appointee and she'll make a decision with no constraints, no expectations."

Butler's appointment made a statement, Newsom said, at a time when Republicans across the country were trying to roll back rights.

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"The assault on the L.G.B.T. community, the assault on the African American community, criminalizing speech and books and travel, this cultural purge that's going on in this country — all of those things matter," he said. "Laphonza Butler is uniquely positioned and simply the best person I could find for this moment and this job."

For more:

Gain unlimited access to The Times — with just one subscription. Independent reporting. Recipes. Games. Product reviews. Personalized sports journalism. Enjoy it all with an introductory offer.

Speaker Kevin McCarthy knew that a dramatic about-face to team with Democrats on a spending bill over the weekend might put his speakership at risk.Haiyun Jiang for The New York Times

The rest of the news

  • One of Speaker Kevin McCarthy's most outspoken Republican critics moved to oust him from his post because he worked with Democrats to avert a government shutdown.
  • The state is preparing to offer transitional kindergarten programs, which combine aspects of preschool and kindergarten, to all 4-year-olds by the 2025-26 school year, CalMatters reports.
  • Negotiations between striking Hollywood actors and entertainment companies ended on Monday with the sides jointly announcing a return to talks on Wednesday.

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Southern California

Central California

  • Federal officials filed an Americans With Disabilities Act lawsuit against a Fresno dog-sitting company on behalf of an applicant and a new employee who said they lost job offers when they tested positive for prescription drugs, The Fresno Bee reports.
Saddleback Mountain rises above the Turtle Rock Viewpoint in Irvine.Mark Rightmire/Orange County Register, via Getty Images

Where we're traveling

Today's tip comes from Gerry Fisher, who recommends a day hike in Irvine:

"A favorite family day hike is Turtle Rock in Irvine. From the top of Turtle Rock you can look across Orange County, out to Catalina Island, to downtown Los Angeles and even the Hollywood sign on a clear day.

Start at Chaparral Park on Turtle Rock Drive. Wind your way to the back of the park until you find the 100 or so stairs that get you started. Finish climbing to the top and then hike out and back along the ridge line. Kids can look for the little formations that look like turtle shells. One side of the rock has sheer cliffs about 10 feet high, so kids can have a challenging climbing experience without much danger. Keep an eye out for roadrunners, rabbits and snakes."

Tell us

We're looking to feature more of your favorite places to visit in California. Send us suggestions for day trips, scenic outlooks, hikes and more. Email your suggestions to CAtoday@nytimes.com.

A burned redwood stump at Redwood National and State Parks near Orick.Ian C. Bates for The New York Times

And before you go, some good news

For those who have visited California's coastal redwood forests, the fairy rings — clearings in the trees in the shape of a near-perfect circle — are part of the magic of the Pacific Coast's pristine woods.

Folklore attributes the clearings to moonlit celebrations of fairies and other mythical creatures who leave rings of vegetation in their wake. The scientific explanation for the rings is slightly less supernatural, but it tells a mystical story of its own about the trees' life cycle and resilience, Garrison Frost writes at the Save the Redwoods League.

The trees generally reproduce by dropping seeded cones on the forest floor, but young trees can also sprout from the existing root structures of mature trees that have been cut down or fallen. Drawing from the roots, the new sprouts spawn around the downed tree's stump, often in a circular pattern. When the stump eventually decomposes, a near-perfect circle of redwoods is left, as if marked by a fairy.

The circles are not merely visually pleasing: The genetic diversity of redwoods in fairy circle formations can also tell scientists about the viability of second-growth forests, Frost writes.

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

Maia Coleman, Briana Scalia and Bernard Mokam contributed to California Today. You can reach the team at CAtoday@nytimes.com.

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