| | | | |  | | By Eugene Daniels, Ryan Lizza and Rachael Bade | Presented by ACLI, Finseca, IRI, NAFA and NAIFA | With help from Eli Okun, Garrett Ross and Bethany Irvine
|  Defense Secretary Lloyd Austin's hospitalization raises questions about the closeness of Austin to both his NSC colleagues and the president that, for days, his absence could go unnoticed. | Getty Images | |  | DRIVING THE DAY | | One big question is on the minds of Washington insiders headed into this week: How the hell does the secretary of Defense end up in the hospital for multiple days and nobody tells the White House? We’ve asked — and been asked — that question over and over again as we worked the phones last night and this morning. People at the White House, the broader Biden administration and the amorphous foreign policy “blob” are befuddled. (“It’s just stupid,” one person told Playbook last night, describing the mood among administration officials. “Just pick up the phone. What are you thinking?”) But piecing together what we’ve learned, we think we have a few answers. The folks that we talked to leaned into Occam’s Razor as an explanation for how this happened. Defense Secretary LLOYD AUSTIN is an intensely private man, a 70-year-old four-star general who is set in his ways and dislikes to “bother” people (including, apparently, some of his staff) with his problems — a tough, “stiff upper lip” bearing that will be immediately familiar to those of us who grew up in military families. With the information currently known, the people we spoke with see this as a serious lapse in judgment on Austin’s part and not a nefarious conspiracy to hide the information. Of course, there’s still a lot that isn’t yet known. We still don’t know what the surgery was, where the breakdown in communication was or who made the decision not to tell the news to White House — notably National Security Adviser JAKE SULLIVAN. It seems, based on his public statement, that Austin believes in a level of privacy that, in actuality, isn’t really afforded to people high up in the presidential line of succession — to say nothing of the person charged with maintaining the nation’s nuclear readiness. As for how the White House didn’t know, former Under Secretary of Defense BRAD CARSON tells POLITICO there’s not a “standard protocol for when to announce a defense secretary’s hospitalization or temporary inability to do the job.” But, according to JEREMY BASH, a former chief of staff at the Defense Department, there’s a system in place to know where folks like Austin are at any given time — making the apparent lack of communication and knowledge even more baffling. “The White House situation room keeps track, in real time, of the whereabouts of all senior officials, including key cabinet secretaries,” Bash told us last night. “DoD’s security teams and the communications teams always have personnel with a secretary and a deputy secretary. So there’s never a time when a secretary truly goes off the grid.” For Biden, the impact of the nondisclosure is two-fold: 1. The practical/governance implications … “From a national security perspective, the most alarming aspect of this is it undermines confidence both in the public, the press, but more importantly, perhaps within the national security system itself, that vital information is getting shared,” said BRETT BRUEN, the president of the Global Situation Room and a former NSC official. “From our allies’ and our adversaries’ perspectives, when they talk to their counterparts in Washington [they assume] that certainly the president certainly and senior officials at the NSC, [know] where the secretary of defense is for days at a time. The fact that they don't creates the impression that this is a dysfunctional system — correct or not,” he told Playbook. It also raises questions about the closeness of Austin to both his NSC colleagues and the president that, for days, his absence could go unnoticed. More from our colleagues Alex Ward, Lara Seligman and Jonathan Lemire 2. The political implications … As a political matter, this will give ammo to Republicans and, in particular, DONALD TRUMP, to underscore an argument they’re already making: That Biden is out of touch, aloof. Trump and other Republicans already call into question “who is really running the country,” and a moment like this is kindling for those claims. One of the biggest questions in the administration is whether or not there will be any accountability to come from this. Biden is famously loyal, surrounding himself with a cadre of advisers who’ve been at his side since he was a senator. Even his closest allies have admitted he can be loyal to a fault, and multiple officials both inside and outside the White House have told POLITICO and Playbook that Austin’s job seems secure at this moment — given what’s known about the situation right now, and given the difficulty of changing horses midstream amid two wars and an election year. “Biden held a ‘cordial conversation’ with his defense secretary on Saturday night, per one of the U.S. officials,” Alex, Lara and Jonathan report. “'The president has complete trust and confidence in Secretary Austin,” the official said. A National Security Council spokesperson echoed that sentiment, noting Biden ‘is looking forward to [Austin] getting back to the Pentagon.’” “This has been such a tight-knit administration that I find it hard to imagine them making someone pay the price,” one former senior DoD official told Playbook. “The ecosystem in our country has changed so that people don't get rewarded for holding people accountable. Certainly in this political environment, Biden would think to himself, ‘Well, I'm not going to be rewarded for holding someone accountable. They'll make a bigger deal out of it if I do.’” Could this time be different? Maybe, says the former official, with one big caveat. “If there really was a big ball that was dropped here, if someone made a decision above their pay grade that the president thinks is unwarranted, then yes, he may push Austin to hold someone accountable.” Good Sunday morning, and Merry Orthodox Christmas. Thanks for reading Playbook. Drop us a line: Rachael Bade, Eugene Daniels, Ryan Lizza.
| | | | A message from ACLI, Finseca, IRI, NAFA and NAIFA: Annuities deliver financial certainty like traditional pensions of old.
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A Department of Labor proposal would shut down access to options for middle-income savers. It’s out of step with bipartisan support in Congress to expand access to guaranteed lifetime income. Stand with us. Protect retirement for all. | | | MEANWHILE, THE REPUBLICAN FRONTRUNNER — … “Trump, in Iowa on Jan. 6 anniversary, calls for release of ‘J6 hostages,’” by the Des Moines Register’s Galen Bacharier. “I call them hostages. Some people call them prisoners,” said DONALD TRUMP. “I call them hostages. Release the J6 hostages, Joe. Release them, Joe. You could do it real easy, Joe.” … “Trump tries reappropriating ‘insurrection’ on Jan. 6 anniversary,” by WaPo’s Isaac Arnsdorf and Marianne LeVine … “Trump says Civil War ‘could have been negotiated,’” by CNN’s Gregory Krieg and Veronica Stracqualursi … “Trump did not sign Illinois’ loyalty oath that says he won’t advocate for overthrowing the government,” by WBEZ’s Dave McKinney: “Trump did not voluntarily sign the state’s loyalty oath as part of his package of ballot-access paperwork submitted Thursday to the Illinois State Board of Elections. That omission … is a departure from his presidential candidacies of 2016 and 2020, when he affixed his signature to the oath both times. … Biden and Republican Florida Gov. RON DeSANTIS both signed the oath — as did several lower-tier Trump acolytes in Illinois, but not Trump. … In part of the oath … candidates attest that they ‘do not directly or indirectly teach or advocate the overthrow of the government of the United States or of this state or any unlawful change in the form of the governments thereof by force or any unlawful means.’” … “Special counsel probe uncovers new details about Trump's inaction on Jan. 6: Sources,” by ABC News’ Katherine Faulders, Mike Levine, Alexander Mallin and Will Steakin: “Sources also said former Trump aide NICK LUNA told federal investigators that when Trump was informed that then-Vice President MIKE PENCE had to be rushed to a secure location, Trump responded, ‘So what?’ — which sources said Luna saw as an unexpected willingness by Trump to let potential harm come to a longtime loyalist.” SUNDAY BEST … On Sec. Lloyd Austin’s hospitalization … — Former VP MIKE PENCE on CNN’s “State of the Union”: “[T]o think that, at a time when we have allies at war in Eastern Europe and here in Israel, that the leader of America's military at the Pentagon would be out of commission for a number of days, and the president of the United States didn't know about it, I think it — I think it was a dereliction of duty. And the secretary and the administration, frankly, need to step forward and give the American people the facts.” — Rep. JAMES CLYBURN (D-S.C.) on CNN’s “State of the Union”: “I don't think it was a dereliction of duty. No, I don't think that at all. I do wish that it had been disclosed, and maybe it was, maybe just not made public. So I don't know all the particulars here. I do know Lloyd Austin. He is a stand-up guy. He's a great defense secretary. … He does have a duty to keep the public informed. And I don't know whether it was him or somebody inside of the military establishment that decided to do it this way. But I'm sure he will do a little better going forward, as he said he would.” — Sen. JAMES LANKFORD (R-Okla.) on “Fox News Sunday”: “[I]t's pretty shocking on this because when you're the Secretary of Defense, you need to make everyone aware that you're actually going to be out of pocket. It's worse than just, he didn't notify the White House. … We're at a time of a lot of turmoil internationally and suddenly had the Secretary of Defense more than just a matter of wasn't there actually sent over false information saying, I'm working from home, when he's not actually available at all. That's a whole different issue.” … Lankford on the timing of a border deal proposal: “Text hopefully this week [we’ll] be able to get that out. Everybody will have time to be able to read it and go through it. No one's going to be jammed in this process, but it's a matter of trying to be able to get this out. … Everyone's counting on this actually working. But it's going to have to be [an] agreement that a White House, that it’s a Democrat[ic] White House and a Democrat[ic] Senate can also line up with [a] Republican House. And we're working to thread that needle for things that actually work.” TOP-EDS: A roundup of the week’s must-read opinion pieces.
| | | | A message from ACLI, Finseca, IRI, NAFA and NAIFA:   Everyone should be able to achieve retirement security. A Department of Labor proposal would limit access to guaranteed lifetime income. Protect retirement for all. | | | | | WHAT'S HAPPENING TODAY | | At the White House Biden and VP KAMALA HARRIS have nothing on their public schedules.
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Donald Trump's presidential campaign has escalated it's attacks against former South Carolina Gov. Nikki Haley. | Scott Olson/Getty Images | 9 THINGS FOR YOUR RADAR 1. COUNTDOWN TO CAUCUSES: With just days left before the Iowa caucuses, the Trump campaign is shifting the focus of its ire. “After spending the last year focusing almost exclusively on tearing down Florida Gov. RON DeSANTIS, the Trump apparatus has determined that [NIKKI] HALEY now requires a greater share of its resources than he does,” report Alex Isenstadt and Meridith McGraw. Trump’s allies now view Haley as “the last obstacle on his path to the nomination.” “Trump’s campaign for the first time this week began airing TV ads against Haley in New Hampshire, claiming that Haley opposed Trump’s proposed wall along the southern border. Its allied super PAC, MAGA Inc., is running a separate commercial in the state accusing Haley of supporting a gas tax increase during her tenure as South Carolina governor, a hit Haley has said mischaracterizes her record. The two outfits are spending a combined $4.5 million on anti-Haley commercials. Neither is currently running commercials targeting DeSantis.” For her part, Haley called Trump’s escalating attacks “a temper tantrum,” reports NYT’s Shane Goldmacher, who notes that the Haley and DeSantis camps “continue to thrash each other as much as Mr. Trump, though both are badly trailing him in most polls.” “It’s literally a circular firing squad for second place,” said TERRY SULLIVAN, who managed Sen. MARCO RUBIO’s 2016 presidential campaign. In an interview with Fox News yesterday, DeSantis said that Haley is “running more on liberal issues rather than the standard conservative policies,” and represents “more of the corporatist Republican bent.” He also said that he would not, under any circumstances, serve as her running mate. Related reads: “DeSantis floats keeping Biden off Florida ballot as SCOTUS weighs Trump case: ‘We're going to fight back,’” by Fox News’ Thomas Phippen … “On Jan. 6 anniversary, DeSantis accuses Democrats of waving ‘bloody shirt,’” by Gary Fineout 2. HALEY’S COMET: As Haley continues to rake in funds from donors looking for an alternative to Trump, her campaign is becoming a “becoming a grand test” of whether big-money GOP donors can effectively change the outcome of the presidential election, Natalie Allison reports this morning: “[I]t is far from clear that all this financial power can generate a breakthrough for Haley. Big donor kingmakers have lost power steadily in recent years, with their influence eroded by a torrent of small-dollar donations online and Trump’s overpowering grip on the GOP base. … But the only place Haley has begun to close the gap with Trump is in New Hampshire, and she remains locked into a tight race for second place in Iowa.” 3. THE SPIN CYCLE: “Colleges under siege over Israel, Hamas and antisemitism, look to PR giants for help,” by Hailey Fuchs, Daniel Lippman and Michael Stratford: “Some of the nation’s top universities are scrambling to hire heavyweight communications firms as their campuses become consumed by cultural and political proxy fights stemming from the Israel-Hamas war. “Among the schools that have turned to firms for help in recent months: New York University, Harvard University, Columbia University, The Cooper Union and the University of California. … While much of the pressure being applied to universities is coming from conservatives, the schools themselves have turned to Democratic-allied firms for help.” 4. MIDDLE EAST LATEST: Just as Israeli officials say they have successfully eliminated much of Hamas's military capabilities in the northern Gaza region, Secretary of State ANTONY BLINKEN is in Jordan to meet with officials in an effort to help quell the conflict in Gaza, NYT’s Edward Wong reports from Amman. During his visit, “Mr. Blinken praised the U.N. food program, saying it was doing its work ‘at tremendous risk’ — a reference to the dangers posed by Israeli airstrikes. And he emphasized the need to effectively distribute the aid “everywhere in Gaza.” Blinken’s visit comes as U.S. officials fear that Israeli Prime Minister BENJAMIN NETANYAHU may see an extended military struggle in Lebanon as essential to his political survival, WaPo’s John Hudson, Yasmeen Abutaleb and Shane Harris report from Istanbul: “In private conversations, the administration has warned Israel against a significant escalation in Lebanon. … [T]here has been broader concern about an escalation in recent weeks, particularly as Israel announced the temporary withdrawal of several thousand troops from Gaza on Jan. 1.” A striking statistic: “Nearly 90 percent of Gazans forcibly displaced after 3 months of war, UNRWA says,” by WaPo’s Niha Masih
| | | | A message from ACLI, Finseca, IRI, NAFA and NAIFA:   Americans deserve financial guidance. Learn how a DOL proposal would shut down access. | | | 5. DISPATCH FROM GRAND JUNCTION: Rep. LAUREN BOEBERT’s decision to switch congressional districts tops off a difficult year for the controversial Colorado Republican, whose "predicament — and her quest for a safer harbor — is offering insight into questions that are proliferating in an era of lightning-rod House members whose stock in trade is stoking the outrage machine,” Ryan Biller writes for POLITICO Mag. “Without Boebert, the dynamics of the 3rd District race suddenly change — it is now an open seat race in a district with a Republican lean, giving the GOP a slight advantage … But plenty of local Republicans in her current district expressed relief upon the news of Boebert’s departure.” 6. IMMIGRATION FILES: “The US sees a drop in illegal border crossings after Mexico increases enforcement,” by AP’s Valerie Gonzalez and Elliot Spagat: “Even if temporary, the decrease in illegal crossings is welcome news for the White House. … Arrests for illegal crossings into the U.S. from Mexico fell to about 2,500 on Monday, down from more than 10,000 on several days in December, according to U.S. authorities. In the Border Patrol’s busiest area, arrests totaled 13,800 during the seven-day period ending Friday, down 29% from 19,400 two weeks earlier.” Related read: “Pressured by record migrant crossings, White House weighs tough concession in border talks with Congress,” by CBS News’ Camilo Montoya-Galvez and Margaret Brennan 7. HE SHALL, FROM TIME TO TIME: In the face of low poll numbers and frequent critique of his campaign strategy, the White House is hoping President JOE BIDEN can leverage his upcoming State of the Union address to ease Democratic fears as he enters an election year, NBC News’ Mike Memoli and Kristen Welker report: “[T]he value being placed on the speech inside the West Wing reflects a defining characteristic of the Biden team’s strategy that often rankles outside allies. Rather than engage in every news cycle, advisers prefer for the president to instead focus his efforts on more significant moments that command wider audiences — ones more likely to include swing voters.” 8. THE GREAT AID DEBATE: “Pentagon’s Ukraine Coffers Run Dry, Threatening Kyiv’s Grip on Its Territory,” by WSJ’s Lindsay Wise, Ian Lovett, Doug Cameron and Nancy Youssef: “Without an influx of weapons and ammunition, Ukraine could soon find itself in a dire situation. Ill-equipped to defend the 600-mile front, Ukrainian generals would have to choose between giving ground or sending outgunned troops into the trenches without artillery cover. … The Pentagon has authority to transfer about $4.2 billion in weapons from the U.S. arsenal to Ukraine, but no money to replenish those stocks. There are no imminent plans to announce additional aid packages.” 9. MICHIGAN MAYHEM: “Republicans vote to oust Karamo as state party chair; she does not recognize their authority,” by The Detroit News’ Craig Mauger and Marnie Muñoz: “At least 45 Republican members of the [Michigan GOP] state committee participated in Saturday's vote, according to attendees. Regardless of whether their decision to remove [Michigan Republican Party Chair KRISTINA] KARAMO is upheld by the Republican National Committee or a court, their action represented the clearest sign yet of the deep division within the Michigan Republican Party, which comes ahead of a pivotal presidential election in November.”
| | | | | PLAYBOOKERS | | Meghan McCain wants to make it really, really clear that she will not vote for Donald Trump. MEDIA MOVE — Jamie Stockwell will be executive local editor at WaPo. She previously has been executive editor for Axios Local. TRANSITION — Jared Perkins will be assistant director of health policy strategy at Brown University’s Center for Advancing Health Policy. He previously was legislative analyst for health policy at the RAND Corporation. HAPPY BIRTHDAY: Sens. John Thune (R-S.D.) and Rand Paul (R-Ky.) … Reps. Jeff Duncan (R-S.C.) and Jonathan Jackson (D-Ill.) … U.S. Ambassador to the Association of Southeast Asian Nations Yohannes Abraham … Dave Banks … POLITICO’s Claire Barkley … The Atlantic’s Conor Friedersdorf … Meta’s Nick Clegg … Adam Entous … Alex Milofsky … Fox Business Network’s Dagen McDowell … Maura Keefe of Keefe Strategies … NBC’s John Reiss … Cherie Short of the Giving Groupe … Stewart Boss … Megan Clarke of Fox News … Lauren Harmon Murphy of Harmon Murphy Creative … Stewart Verdery of Monument Advocacy … Rishi Sahgal … Purple Strategies’ Tim Kraus … Linda Douglass … former Rep. Loretta Sanchez (D-Calif.) … Axios’ Ben Geman … Ashley Callen ... Cory Crowley ... Brett Shogren … Katie Couric … Michael McAdams … Mike Brodo of the International Republican Institute … Jennifer Denney Lawson of Keep America Beautiful … CMS’ Ernie Tai …. Mike D’Orazio of Rep. Guy Reschenthaler’s (R-Pa.) office 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, producer Andrew Howard and Playbook Daily Briefing producer Callan Tansill-Suddath. Did someone forward this email to you? Sign up here.
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