How McCarthy and Biden both won the debt deal

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Jun 01, 2023 View in browser
 
POLITICO Playbook

By Eugene Daniels, Rachael Bade and Ryan Lizza

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With help from Eli Okun and Garrett Ross

A close-up of Kevin McCarthy as reporters surround him.

Kevin McCarthy mustered 149 GOP yea votes for the bill, after he’d reportedly guaranteed 150. | Francis Chung/POLITICO

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DRIVING THE DAY

STRANGE BEDFELLOWS — “Supreme Court’s expansion of gun rights could be good news for Hunter Biden,” by Betsy Woodruff Swan

WHOSE ‘CULTURE OF LOSING’ IS IT? — Campaigning in Iowa yesterday, Florida Gov. RON DeSANTIS lamented a “culture of losing” that has taken root in the GOP, an implicit swipe at DONALD TRUMP. “We should have 55 Republican senators right now,” said DeSantis.

Just a reminder about 2022: DeSantis campaigned for BLAKE MASTERS in Arizona, ADAM LAXALT in Nevada and MEHMET OZ in Pennsylvania; recorded a robocall for JOE O’DEA in Colorado; and endorsed DON BOLDUC in New Hampshire and HERSCHEL WALKER in Georgia. All six candidates lost.

We can’t help but wonder: Which of those 2022 GOP Senate nominees would DeSantis have preferred not run?

THE ART OF THE DEBT CEILING DEAL — It’s June 1. The X-date (when the U.S. Treasury runs out of money to pay its bills) is four days away. And yet, as the sun rises in Washington this morning, there’s a new sense of certainty that the very worst outcome — a default that craters the economy — will be avoided.

That’s the big-picture result of last night’s House vote, as 165 Democrats and 149 Republicans joined together to pass the debt ceiling deal brokered by President JOE BIDEN, House Speaker KEVIN McCARTHY and their respective emissaries.

While the headline may be about the economic and policy implications of the vote, there are three important political takeaways coming into view today:

1. McCARTHY GETS A SIGNATURE WIN: It was the greatest test of his nascent speakership. And, depending on who you ask, he passed.

Yes, more Democrats than Republicans ultimately voted for the bill. Yes, that is something of a disappointment for McCarthy — mustering 149 GOP yea votes, given that he’d reportedly guaranteed 150.

But getting two-thirds of House Republicans to back any debt-ceiling increase is a remarkable feat.

“Few had expected that Mr. McCarthy would be able to unite his fractious conference around any such measure, much less one negotiated with Mr. Biden, without prompting an attempt by his right flank to oust him,” writes NYT’s Catie Edmondson. “As of Wednesday, no such effort had materialized, though there still may be political consequences ahead for Mr. McCarthy after a vote that reflected the depth of Republican opposition to the deal he cut.” Speaking of …

2. THE HARD RIGHT IS BROUGHT TO HEEL: Our colleagues Sarah Ferris and Olivia Beavers have some important insight this morning into how members like Reps. JIM JORDAN (R-Ohio), MARJORIE TAYLOR GREENE (R-Ga.) and THOMAS MASSIE (R-Ky.) helped McCarthy quash a rebellion on the far right of the GOP conference:

“As the House Freedom Caucus was preparing to discuss whether to officially oppose the speaker’s bipartisan debt deal … Jordan phoned several fellow members with a request, according to a person familiar with the calls. The former chair of the group urged them to hold back, effectively giving conservatives who wanted to vote with McCarthy license to do so.”

And yet, even as there is lingering anger on the right, the “rumblings of booting [McCarthy have] largely extinguished, at least for now,” Sarah and Olivia write.

The rest of the conference would circle wagons” if a motion to vacate is attempted, one senior House Republican tells Sarah and Olivia. Any attempt to oust the speaker would “be a good way to consolidate support around McCarthy.”

3. A MAJOR VICTORY FOR BIDEN: On the other end of Pennsylvania Avenue, there are not only sighs of relief from the White House, there’s a sense that Biden navigated dire legislative straits with finesse.

POLITICO’s Jennifer Haberkorn, Adam Cancryn and Nick Wu write that the passage “was a major victory for Biden, not just preventing an economic calamity that could have come with a debt ceiling breach but proving — five months into a divided government — that the White House and House Democrats have persevered through what seemed, at times, like a rocky relationship.”

Said Rep. JIM CLYBURN (D-S.C.), a close Biden ally: “I don’t know if he’s that lucky or that skillful. Whatever it is, it’s damn sure working.”

We’re told the president watched the vote from his hotel room in Colorado Springs while on the phone with aides STEVE RICCHETTI and LOUISA TERRELL, who helped broker the deal and were watching from the West Wing.

After the bill passed, Biden called McCarthy, House Democratic leaders HAKEEM JEFFRIES, KATHERINE CLARK and PETE AGUILAR and, in a recognition of the road ahead, Senate Majority Leader CHUCK SCHUMER.

 

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THE SENATE'S TURN — It appears to be smooth sailing from here. Both Schumer and Senate Minority Leader MITCH McCONNELL were pretty blunt about the need to get this wrapped up by the end of the week and are hoping for cooperation from all senators.

Yesterday, Schumer told reporters that the Senate “can’t send anything back to the House. That would risk default. Plain and simple.” And McConnell said that he hoped that “those who have amendments would yield that time so that we can finish this Thursday or Friday.”

The most likely outcome is that the handful of aggrieved senators will be offered amendment votes (which will be certain to fail) in return for their agreement to accelerate a fait accompli. There’s no way, after all, that a bill that passed the House on a 314-117 vote isn’t ultimately passing the Senate.

SPEED BUMPS ON THE RIGHT: Sen. RAND PAUL (R-Ky.) has indicated that as long as there’s a vote on his amendment further cutting government spending, he’s OK with a faster timeline. Sen. MIKE LEE (R-Utah) said that while he plans on submitting multiple amendments, he doesn’t “have any desire to hold it up for the sake of holding it up.”

SPEED BUMPS ON THE LEFT: Sens. BERNIE SANDERS (I-Vt.) and ELIZABETH WARREN (D-Mass.) have already said they are voting no. Sen. TIM KAINE (D-Va.) is incensed that the Mountain Valley Pipeline made it into the debt ceiling bill and is frustrated the White House didn’t give him or other Virginia Democrats a heads up. (WaPo’s Maxine Joselow has the backstory on how the pipeline made it into the deal.)

In the unlikely event that senators can’t strike an amendment deal, expect Schumer to file cloture on the motion to proceed at some point today — escalating the threat of rare weekend work.

HOW IT’S PLAYING — “Trump and other GOP presidential hopefuls pan debt ceiling deal,” by WaPo’s John Wagner

Good Thursday morning. Welcome to June. Thanks for reading Playbook. Drop us a line: Rachael Bade, Eugene Daniels, Ryan Lizza.

 

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LORDY, THERE ARE TAPES — Federal prosecutors have an explosive audio recording of a “summer 2021 meeting in which former President DONALD TRUMP acknowledges he held onto a classified Pentagon document about a potential attack on Iran,” CNN’s Katelyn Polantz, Paula Reid and Kaitlan Collins report. “The recording indicates Trump understood he retained classified material after leaving the White House, according to multiple sources familiar with the investigation. On the recording, Trump’s comments suggest he would like to share the information but he’s aware of limitations on his ability post-presidency to declassify records, two of the sources said.”

INSIDE THE GOP’S DEBT CEILING WHIP OPERATION — Several months back, House Majority Whip TOM EMMER (R-Minn.) and Chief Deputy Whip GUY RESCHENTHALER (R-Pa.) set out on what at the time seemed like an impossible task: crafting a debt ceiling increase that 218 House Republicans would support. (This in a chamber where the GOP had just a four-seat margin.)

McCarthy’s Republican predecessors had tried and failed to do just that. But the whips agreed: If the majority wanted to avoid handing Biden a debt ceiling increase that didn’t rein in his spending priorities, they’d first have to find a way to unify the conference behind an alternative. It would become Republicans’ opening salvo in the negotiations.

For a special early edition of Playbook Deep Dive, Rachael sat down with Emmer and Reschenthaler just hours before yesterday’s bipartisan House vote on the debt bill. That agreement included GOP policy wins that may never have been realized had the pair not helped piece together a framework Republicans could back — and then muscled the votes to pass it.

A quote by Rep. Tom Emmer (R-Minn.) is pictured.

How did they get there? Listen as the two whips tell us about the one-on-one listening sessions and group huddles they convened to get members on board.

The upshot? That members want to be heard. And by listening to lawmakers across the GOP’s ideological spectrum — and, better yet, having them hear from each other — Republicans have found a recipe for success they hope to replicate in the future. Listen to the full episode … Check us out on Apple Podcasts or Spotify 

BIDEN’S THURSDAY (all times Eastern):

11:40 a.m.: The president will deliver the commencement address at the U.S. Air Force Academy in Colorado.

4:20 p.m.: Biden will depart Colorado to return to the White House.

VP KAMALA HARRIS’ THURSDAY:

1:15 p.m.: The VP will hold a press call to make an announcement regarding the administration’s leadership addressing racial bias in home appraisals.

THE SENATE is in and is expected to consider the Fiscal Responsibility Act.

THE HOUSE is out.

 

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.

 
 

PHOTO OF THE DAY

President Joe Biden greets Thunderbird pilots at Peterson Space Force Base in Colorado Springs, Colo.

President Joe Biden greets Thunderbird pilots at Peterson Space Force Base in Colorado Springs, Colo., on Wednesday, May 31. | Andrew Harnik/AP Photo

PLAYBOOK READS

2024 WATCH

TRUMP REVS THE ENGINE AGAIN — “Trump adds some campaign muscle to early state operations,” by Alex Isenstadt: “ERIC HOLLANDER will serve as the campaign’s national field director, a post that will task him with spearheading operations in those two states. Hollander most recently oversaw Kentucky gubernatorial candidate DANIEL CAMERON’s winning primary campaign. Hollander also helped to spearhead the successful 2022 campaign of Sen. TED BUDD (R-N.C.) and managed the 2018 reelection bid for Sen. TED CRUZ (R-Texas).”

DeSANTIS’ IOWA MARCH CONTINUES — DeSantis carried on with his blitz of the first-in-the-nation state yesterday, where the common theme among all the coverage centered on two main themes …

1. I am just like you: “DeSantis talks up fast food, service stations in Iowa relatability tour,” by Natalie Allison: “Long viewed by critics as aloof, he was attempting to soften the edges. The DeSantises, he suggested in story after story Wednesday, are young, they are energetic and they are just like you. For DeSantis, it marked a significant effort to come across as relatable in a state whose caucus politics demand it.”

There was a particularly Iowa angle to it all, write Des Moines Register’s Katie Akin and Brianne Pfannenstiel: “Presidential candidates are quick to find their ‘Iowa connection’ — a distant relative or long-past family vacation that links them to the caucusgoers they're courting. The Iowa connection for Florida Gov. Ron DeSantis? A slate of significant laws that was passed by Republican legislative majorities in both states.

“‘Maybe Florida is the Iowa of the South,’ DeSantis joked at a Council Bluffs speech Wednesday as the audience laughed and cheered.” (Flashback: “Florida is the Iowa of the Southeast,” DeSantis said in Iowa on May 13; “Florida is the Utah of the southeast,” DeSantis said in Utah on April 22.)

2. Trump is not like you: “In Iowa, DeSantis Signals the Start of a Slugfest With Trump,” by NYT’s Shane Goldmacher and Nicholas Nehamas: “Some themes have emerged in Mr. DeSantis’s early broadsides. He has sought to question Mr. Trump’s commitment to conservatism (‘I do think, unfortunately, he’s decided to move left on some of these issues’); his ability to execute his agenda (‘I’ve been listening to these politicians talking about securing the border for years and years and years’); and his ability to win the 2024 general election (‘There are a lot of voters that just aren’t going to ever vote for him’).”

DO AS I SAY, NOT AS I DO — “Nikki Haley slams foreign lobbyists while accepting funds from them,” by ABC’s Soo Rin Kim

MAD LIBS HEADLINE OF THE DAY — “Inside Trump and DeSantis’ Ugly Feud Over The Babylon Bee,” by Rolling Stone’s Asawin Suebsaeng and Adam Rawnsley

IN A PAST LIFE — “DeSantis's criminal justice record in Florida scrutinized amid Trump criticism,” by the Washington Examiner’s Christian Datoc

CONGRESS

THE MENENDEZ MESS — “Sen. Bob Menendez Met Businessman Under Scrutiny in Federal Probe,” by WSJ’s Corinne Ramey, James Fanelli and Summer Said: “The meeting, which hasn’t been previously reported, came months before the businessman, WAEL HANA, secured a contract with Egyptian officials for certifying halal meat exports. The contract is a key part of the probe examining whether [Sen. BOB] MENENDEZ, who chairs the Senate Foreign Relations Committee, or his wife received gifts in exchange for political favors.”

THE MAN BEHIND THE CURTAIN — HuffPost’s Matt Shuham has the download on GARRETT ZIEGLER, a former Trump White House staffer who has been quietly advising House Republicans in their probe into HUNTER BIDEN.

But Ziegler’s involvement raises some questions, given his online postings and role in the 2020 election aftermath. “Speaking to HuffPost, Ziegler denied any bigoted beliefs, but he has also repeatedly reposted material online from the prominent white nationalist NICK FUENTES and other bigots,” Shuham writes.

EYEBROW RAISER — “Aide fired by George Santos says he got his job after sending money to Republican’s deputy,” AP’s Jake Offenhartz scoops: “DEREK MYERS, 31, told staff of the House’s ethics subcommittee during an interview Wednesday that while he was trying to get a job in [Rep. GEORGE] SANTOS’ [R-N.Y.] congressional office in late January, he sent at least seven $150 payments to Santos’ director of operations, VISH BURRA. … His account of how Burra helped him get hired hasn’t previously been reported and raises questions about potential ethical improprieties around Santos.”

FOR YOUR RADAR — “Republicans Probing Bidens Step Up Threats Against FBI Chief Christopher Wray,” by WSJ’s C. Ryan Barber and Sadie Gurman

FAMILY MATTERS — “Tommy Tuberville’s musician brother ‘compelled to distance’ himself over ‘racial stereotypes, white nationalism,’” by AL.com’s William Thornton

 

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AMERICA AND THE WORLD

FOR YOUR RADAR — “Iran plans to escalate attacks against U.S. troops in Syria, documents show,” WaPo’s Joby Warrick and Evan Hill scoop: “Iran and its allies are building and training forces to use more powerful armor-piercing roadside bombs intended specifically to target U.S. military vehicles and kill U.S. personnel, according to classified intelligence reports obtained by The Washington Post. Such attacks would constitute an escalation of Iran’s long-running campaign of using proxy militias to launch rocket and drone strikes on U.S. forces in Syria.”

DEPT. OF STEPPING IN IT — U.S. Ambassador to South Africa REUBEN BRIGETY caused a diplomatic firestorm when he publicly accused South Africa of sending weapons to Russia. U.S. officials have so far mostly stayed silent on the fracas, but now tell our colleague Nahal Toosi that Brigety both lacked permission to say what he said and overstated the intel.

HEADS UP — “Pentagon is blocking U.S. cooperation with international investigations of war crimes in Ukraine,” by NBC’s Dan De Luce and Abigail Williams

THE ECONOMY

FED UP — “Fed Prepares to Skip June Rate Rise but Hike Later,” by WSJ’s Nick Timiraos

TRUMP CARDS

TRUMP’S TRIAL BALLOON — “Claiming conflicts, Trump lawyers to seek recusal by judge in criminal case,” by WaPo’s Shayna Jacobs

CHOOSE YOUR FIGHTER — “Kayleigh McEnany vs. Trump: Who you got?” by WaPo’s Philip Bump

POLICY CORNER

WHAT TOMMY TUBERVILLE IS READING — “Air Force picks Colorado for more Space Force missions as politics loom over headquarters decision,” by AP’s Tara Copp

CON-CENSUS — “Census Bureau delays release of some of census’ most detailed data until 2024,” by AP’s Mike Schneider

CAUGHT UP IN THE CULTURE WARS — “Pentagon cancels drag show at Air Force base as Pride Month begins,” by CNN’s Oren Liebermann

MEDIAWATCH

LIFE AT THE GRAY LADY — Vanity Fair’s Charlotte Klein takes a peek behind the doors of the NYT newsroom as it is still wrestling with the controversial profile of ELIZABETH HOLMES. “As Holmes headed to jail Tuesday, business editor ELLEN POLLOCK was put on the spot to defend a soft-focus profile of the disgraced Theranos founder, telling staff she didn’t ‘give a fuck’ about the criticism.”

Plus, Klein breaks this little tidbit for media obsessives: “Side note: also at Tuesday’s meeting … Pollock said she is no longer actively looking for a new media columnist.”

 

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

Chipotle’s tortilla chips are non-negotiable for Kevin McCarthy.

Lauren Boebert just missed the debt deal vote.

Patrick McHenry has some new memorabilia from the debt limit saga.

Amy Klobuchar is either a really big sneakerhead, or she needs to see more movies.

Nikki Haley’s husband, Michael, will deploy with the National Guard to Africa for a year.

Elon Musk is the richest man on Earth again.

OUT AND ABOUT — SPOTTED at a party for Sen. Amy Klobuchar’s (D-Minn.) new book, “The Joy of Politics: Surviving Cancer, a Campaign, a Pandemic, an Insurrection, and Life's Other Unexpected Curveballs, ($30) yesterday evening hosted by Susanna Quinn, Stephanie Cutter, Adrienne Elrod and Hilary Rosen: Sen. Catherine Cortez Masto (D-Nev.), Rep. Steny Hoyer (D-Md.) and fiancé Elaine Kamarck, Adrienne Arsht, Bob Barnett and Rita Braver, Ron Klain, Kate Bennett, Abby and Roy Blunt, Nancy Cordes, Joe Crowley, Reema Dodin, Mike and Trish Donilon, Karen Finney, Juleanna Glover, Weijia Jiang and Luther Lowe, Dan Koh, Amy Sennett, Mitch Landrieu, Rachel Levitan, Melissa Maxfield, Andrea Mitchell, Avery Miller, Andrew Peek, Jennifer Griffin, Chuck Todd, Robyn Bash, Chris Jansing, Liz Lowery and Kimball Stroud.

SPOTTED at a reception last night to welcome David Trulio as the new president and CEO of the Ronald Reagan Presidential Foundation and Institute: Elaine Chao, Grover Norquist, Carla Sands, Jordanian Ambassador Dina Kawar, Taiwanese Representative to the U.S. Bi-Khim Hsiao, Luxembourg Ambassador Nicole Bintner-Bakshian, Ellen Lord, Jim Talent, Fred Ryan, Kelsey Koberg Beymer and Tanner Beymer, Keith Urbahn and Kerri Kupec, Matt Rhodes, Jacqueline and Jon Ferko, Kimberly Reed, John McConnell, Mark Vlasic and Lt. Gen. Dan Caine.

FIRST IN PLAYBOOK — Dave Vasquez is now national press secretary for Never Back Down, the super PAC backing Ron DeSantis’ presidential run. He previously served as DeSantis’ press secretary for the 2018 gubernatorial campaign and during his first term and most recently was press secretary for Sen. Ted Cruz (R-Texas). He is also a Trump Pentagon alum.

Former Sen. Roy Blunt (R-Mo.) and former Rep. Val Demings (D-Fla.) are joining the Bipartisan Policy Center as executive fellows.

WHITE HOUSE ARRIVAL LOUNGE — Maria Michalos is now an associate comms director for the White House. She most recently was acting head of public affairs at the EPA. More for Pros from Kevin Bogardus

TRANSITIONS — Jonathan Murphy is now leading military helicopter and military aircraft comms for Airbus U.S. Space & Defense. He previously was senior manager for PR and public affairs at Raytheon Technologies, and is a John Warner alum. … Rodericka Applewhaite is now a director in the public affairs division of SKDK. She previously was senior comms adviser for the Michigan Democratic Party and is a Pete Buttigieg and EMILY’s List alum. … Nathan Leamer is launching Fixed Gear Strategies, a consulting firm focusing on tech and policy. He previously was VP of public affairs at Targeted Victory. …

Jayni Hein is joining Covington & Burling as co-chair of the firm’s newly launched carbon management and climate mitigation initiative. She previously was senior director for clean energy, infrastructure and the National Environmental Policy Act at the White House Council on Environmental Quality. … Will Todd and Lily Woodall are launching Icebreaker Strategies, a government relations firm specializing in appropriations, national security policy and business development strategy. Todd previously was a principal at Cornerstone Public Affairs. Woodall previously was a senior associate at Cornerstone Public Affairs.

WEDDING — Jesse Southerland, federal policy director at Americans United for Life, and Caroline Lucas, an actress, got married May 12 at River Farm in Alexandria, Va. They met in 2018 and reconnected in early 2022 when she was visiting his church, Grace Capital City in D.C. PicAnother pic

HAPPY BIRTHDAY: Rep. Lucy McBath (D-Ga.) … Addisu Demissie … NBC’s Alex Seitz-WaldAlex Stoddard … FT’s Ed Luce … CBS’ Olivia Gazis … AP’s Bill BarrowRichard Sant of Lockheed Martin … Karen TramontanoLeslie Harris … Google’s Sasha Moss … USCCR’s Irena Vidulović … The Spectator’s Amber Athey (28) … former Rep. Gregg Harper (R-Miss.) … Sean Kennedy of the National Restaurant Association … Advoc8’s Jeremy RoseMatt WinklerDan Tannebaum (4-0) … Melissa HockstadJim InnocenziDanielle O’ByrneDiane ZelenyChristopher Minakowski … Percipient Strategies’ Tyler Ross Terrance Green … Insider’s Benjamin Nigh … DNC’s Jose NunezHeath Knakmuhs of the U.S. Chamber (5-0) … Kay Coles James … Teamsters’ Kate Yeager Dan Bartlett of Walmart … Mark Green of the Wilson Center

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