Debt negotiators narrow spending divide

A play-by-play preview of the day’s congressional news
May 25, 2023 View in browser
 
POLITICO Huddle

By Katherine Tully-McManus and Daniella Diaz

With an assist from Sarah Ferris, Nicholas Wu, Jordain Carney and Burgess Everett.

DEBT CLOCK — There are SEVEN DAYS until the earliest possible federal default, according to the Treasury Department’s most recent projection.

House Speaker Kevin McCarthy (R-Calif.) speaks with reporters after House votes at the U.S. Capitol May 24, 2023. (Francis Chung/POLITICO via AP Images)

House Speaker Kevin McCarthy (R-Calif.) speaks with reporters after House votes at the U.S. Capitol May 24, 2023. (Francis Chung/POLITICO via AP Images) | AP

MIND THE GAP — Is a debt-limit deal closer than it appears? It could be. Multiple people close to the talks tell us that Republicans and the White House are closing the gap on spending levels.

Republicans are eager to show real progress before members hit the road today, even if negotiators remain short of a deal. One person briefed on the negotiations said that while the gap has narrowed, the two sides are still tens of billions of dollars apart.

"I think we've made some progress working down there. So that's very positive ... and we'll continue to work through to try to get a solution," Speaker Kevin McCarthy (R-Calif.) told reporters late Thursday afternoon. Earlier in the day, Thursday he said, “Things are better than they were yesterday.”

“It seems to me that if there's a resolution that involves a spending freeze that the spending freeze should also match the length of time the debt ceiling is suspended,” Minority Leader Hakeem Jeffries (D-N.Y.) told reporters Wednesday.

We're also hearing an energy transmission bill from Sen. John Hickenlooper (D-Colo.) called the BIG Wires Act is under serious consideration for a final package, according to the person briefed, who spoke on the condition of anonymity to candidly describe the private talks.

Together, that signals major progress on two of “four pillars” for a deal laid out recently by Rep. Garret Graves (R-La.): spending caps and energy permitting.

Another of Graves’ pillars, tightened work requirements for food aid recipients, is a trouble spot that is slowing discussions, we’re told. The White House and Republicans anticipate finding some common ground on the fourth — clawing back unspent Covid aid dollars — but they aren’t getting specific yet.

To be crystal clear: No one is working on the full, final legislative text right now. At this point, there is only speculation about how it could all unfold if a deal comes together.

On the schedule: House lawmakers are heading home for Memorial Day. After this morning’s votes the House will recess for the (extra) long weekend, even though a debt limit deal has yet to be reached. Leadership has promised that members will get 24 hours notice before they need to be back in Washington for votes. (Expect that to coincide with the promised 72-hour period for reviewing the legislation.)

A Monday vote is most likely off the table, with leaders reluctant to pull lawmakers out of somber Memorial Day events, such as wreath layings at local cemeteries and visits to military installations. (That means the parades, cookouts and Memorial Day fun may also be saved.)

There are murmurings among Republican aides that if they can get text in time, the House could vote as soon as Tuesday night, but not until after markets close (to avoid any floor drama sending markets into a tizzy).

We expect to hear more on negotiation details and potential scheduling once members are gone for the weekend. By waiting for their colleagues to clear out, leaders and negotiators hope to avoid fighting words from the rank-and-file going viral and tanking the ongoing talks.

Downgrade watch: One credit rating agency is considering downgrading the nation’s top credit rating as the country staggers towards default and negotiations between the White House and Republicans continue. Fitch has put the U.S. triple-A credit rating on “rating watch negative.”

“The brinkmanship over the debt ceiling, failure of the U.S. authorities to meaningfully tackle medium-term fiscal challenges that will lead to rising budget deficits and a growing debt burden signal downside risks to U.S. creditworthiness,” Fitch said.

Five is the magic number: Democratic Whip Katherine Clark (D-Mass.) announced yesterday that all 213 members of th Democratic Caucus are now signed on to the discharge petition to lift the debt ceiling without spending cuts. Democratic leaders still need to find five Republicans for the petition to move forward. Those could prove elusive — especially with bipartisan talks progressing."

Related reads: McGovern pushes White House to hold Democrats’ line on food programs, from Tal Kopan at The Boston Globe; McCarthy’s office has not met with Chamber during debt ceiling fight, from POLITICO’s own Hailey Fuchs; 5 things people get wrong about the debt ceiling saga, from Scott Horsley at NPR

 

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GOOD MORNING! Welcome to Huddle, the play-by-play guide to all things Capitol Hill, on this Thursday, May 25, where a long weekend launches in the House… unless you’re a negotiator.

ONE FISH, TWO FISH, NEW FISH, BLUE FISH —Your Huddle hosts spoke exclusively and extensively with the three co-chairs of the Blue Dog Coalition — Reps. Jared Golden (D-Maine.), Mary Peltola (D-Alaska)  and Marie Gluesenkamp Perez (D-Wash.) — about what they’re hoping to achieve as the group who tends to vote independently of the Democratic leadership.

First things first: “Blue Dogs aren't centrists. If we could banish the term ‘centrist’ from the political vocabulary, we absolutely would,” Golden said.

Golden was previously a co-chair of the group alongside Jim Costa (D-Calif.), who left the role. Petola and Gluesenkamp Perez are now co-chairs with Golden, with Gluesenkamp Perez officially joining the group Wednesday.

Try, edgy? “Some people might even describe it as edgy sometimes,” Golden said, because of the rare frankness that the trio brings to Washington. “But I think it's really important to be genuine and real and honest, and that’s something I think all three of us have as a strength in this place.”

The cure: “We believe that Blue Dogs are really the antidote to the poison of fascism and and extremism — like, we are not just about taking out the easy,” Gluesenkamp Perez told your Huddle hosts. “We all ran and won in Trump districts. Some of us took out some pretty gnarly opponents.”

She added: “The antidote to that extremism is people that know and care deeply about their community. It's not more partisanship.”

On the debt limit: Golden said that despite the fact that the group sent a letter to Biden to negotiate on the debt limit in February — months ago — he added, “it's not helpful or constructive to sit here and pick the negotiators about what they could have or should have done.” But he said the group wants to see a deal with Republicans before announcing whether they’d support it. While they aren’t positioning themselves to be critical dealmakers on this issue, Golden says the group wants to be “positive contributors to the outcome here,” noting that, “By the way, a lot of people I think, aren’t playing that role.”

Golden said he’s in touch with most of the folks in the room and at the table for negotiations, both on the White House side and Republicans.

Fish caucus within a caucus: Peltola noted an important constituency that the three co-chairs share: fishermen.

“It's important for Blue Dogs to be including fishermen as part of the blue collar real world economy in America and real world households, and I'm just excited to be part of, like, a fish caucus within the Blue Dog caucus,” Petola said.

On the upcoming farm bill: Gluesenkamp Perez has been hosting Farm Bill listening sessions and has a key takeaway: “What I'm hearing from my farmers and producers in those meetings is … these folks are not clamoring to cut food benefits. What they are talking about are fundamentally antitrust issues.” They want to be able to fix their own equipment and get their milk to market.

“The Republicans can't stop talking about banning books. Like, fix something. It's enraging to me that the things that are crushing our farms and our producers have become — they're just crumbs, the amount of attention they get,” she said.

On leadership: Golden said voters and lawmakers should be more skeptical of what the establishment says is good for them. “When you have the president of United States, no matter who it is, and the entire political establishment, the leader of every party, standing together on stage and saying, this is going to be good for you, it should make the hair on the back of your neck stand up a little bit, and you want to maybe look into the details,” Golden said.

Just for fun: “I think we are the only people in Congress that can run and fix a chainsaw,” Gluesenkamp Perez mused before Peltola jumped in: “Chainsaws are not my friend.”

FIRST IN HUDDLE: STATE OF SLOTKIN — Rep. Elissa Slotkin’s (D-Mich.) bid to replace retiring Sen. Debbie Stabenow (D-Mich.) is picking up endorsements from a slate of fourteen unions, including the Michigan Building Trades Council, the Michigan Pipe Trades Association, the Laborers’ International Union of North America (LiUNA) and the Michigan State Conference of the International Brotherhood of Electrical Workers (IBEW). The union support, confirmed by Slotkin’s campaign, could help bolster Slotkin’s odds in Michigan, which has long been a labor bastion.

“We’re proud to stand with Elissa and look forward to working with her when she’s Michigan’s next U.S. Senator,” said Price Dobernick of the Michigan Pipe Trades Association.

COMER CONTEMPT WATCH — Oversight Committee Chair James Comer (R-Ky.) is upping his pressure campaign to get FBI Director Christopher Wray to hand over a document Republicans have linked to an “alleged criminal scheme” involving then Vice President Joe Biden.

Comer, in a letter to Wray, warned that he has until May 30 to respond to the subpoena. If the FBI doesn’t produce the document by then, the Kentucky Republican is threatening contempt of Congress proceedings. (Comer said on Fox News last night that he is meeting with Wray next week, but keeping the contempt deadline.)

Comer issued a subpoena earlier this month for a FD-1023 form — the formal term for records that describe conversations with a confidential human source — from June 2020 that included the word “Biden.” In his letter Wednesday, Comer provided an additional search term, “five million.” He also narrowed the date to June 30, 2020.

HUDDLE HOTDISH

Angel in our midst: The NCAA champion Louisiana State University women's basketball team will visit the Capitol today, hosted by LSU alum and Majority Leader Steve Scalise. The team is scheduled to be at the White House later this week.

Premature promotion: MSNBC ran a graphic Wednesday with big photos of Reps. Jamie Raskin of Maryland and Elissa Slotkin of Michigan, but giving them the title of senator. Slotkin is vying to replace Stabenow, and Raskin is considering a run for Sen. Ben Cardin’s seat.

Cracks in the facade: The beautifully repaired and repainted Ohio Clock Corridor is looking rough again. Cracks, flaking plaster and not-artfully-exposed bricks seen this week had us wondering what happened to the many, many months of work to get the place glowing again. According to the Architect of the Capitol’s office, “follow up quality control inspections” revealed areas needing work that were not initially identified.

“These areas were not discovered during the initial phase of work due to obstruction from scaffolding providing critical access to the poor conditions of the ceiling in the space. These new areas will be repaired and repainted as soon as possible,” per the Architect’s office.

Met with laughter: Rep. Marjorie Taylor Greene called for decorum on the House floor — and got laughed at by House Democrats.

Who is George Santos? “Subheads in a piece on this N.Y. Rep.: ‘Lied about where he went to … college’; ‘allegedly swindled a disabled vet whose dog was dying’” Jeopardy Host Ken Jennings responded, “I don’t get to say this very much, but George Santos is correct,” when one of the contestants answered correctly.

QUICK LINKS 

The Supreme Court gift list: Paintings, guns, and a sculpture of a hand, from James Romoser

Boomer Senate Snubs Retirement A Decade Beyond Most Americans, from Greg Giroux at Bloomberg Government

Marlene Woods, former TV journalist, launches campaign for Rep. David Schweikert's seat, from Tara Kavaler at The Arizona Republic

Sinema says immigration is her 'No. 1 concern' as she considers her next moves, from Julie Tsirkin and Liz Brown-Kaiser at NBC News

As staff shield Feinstein from the press, a picture really is worth a thousand words, from Kent Nishimura at the Los Angeles Times

TRANSITIONS 

Amit Ronen will be Sen. Maria Cantwell's new chief of staff. Ronen has worked for Cantwell (D-Wash.) for more than 16 years, on issuing ranging from EV tax credits to federal lands.

Former Rep. Elaine Luria (D-Va.) has joined the board of directors at BAE Systems.

Steve Dwyer has joined the Office of the Chief Administrative Officer as the senior director of innovation. Many may know him as the creator of the Dome Watch app and the House Democratic Caucus's online resume bank during his time with Rep. Steny Hoyer’s leadership team.

Tim Fitzgerald is now a member services and coalitions coordinator with the House Agriculture Committee. He previously was staff assistant for the House Republican Conference.

Andrew Morley is now senior government relations manager at Citizens for Responsible Energy Solutions. He previously was a legislative assistant and director of energy and natural resources policy for Rep. Pete Stauber (R-Minn.).

 

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.

 
 

TODAY IN CONGRESS

The House convenes at 9 a.m. for legislative business. First and last votes are expected at 9:45 a.m.

The Senate convenes at 12:30 p.m. for a pro forma session.

AROUND THE HILL

9:15 a.m. Rep. Annie Kuster (D-N.H.) and the New Democrat Coalition leaders, as well as veterans, will hold a press conference on debt ceiling negotiations and the impact default would have on service members. (House Triangle)

11 a.m. Reps. Rashida Tlaib (D-Mich.), Yvette Clarke (D-N.Y.) and Glenn Ivey (D-Md.) will have a press conference to call on the Biden Administration to protect African immigrants by designating TPS for African countries. (House Triangle)

12 p.m. Reps. Chuy García (D-Ill.), Ro Khanna (D-Calif.) and Val Hoyle (D-Ore.) will hold a press conference to introduce legislation to ban stock buybacks. (House Triangle)

1 p.m. Minority Whip Katherine Clark (D-Mass.), alongside members of the Dem Women’s Caucus, will hold a press conference on the debt ceiling and the impact a default would have on women and families. (House Triangle)

TRIVIA

WEDNESDAY’S WINNER: Kevin Diestelow correctly answered that Deborah Sampson fought as a soldier in the American Revolutionary War disguised as a man.

TODAY’S QUESTION from Kevin: What Pennsylvania delegate to the Constitutional Convention first proposed using an electoral college to select the President after his initial proposal that the President be chosen by popular vote was rejected?

The first person to correctly guess gets a mention in the next edition of Huddle. Send your answers to ktm@politico.com.

GET HUDDLE     emailed to your phone each morning.

Follow Katherine on Twitter @ktullymcmanus

 

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