| | | | |  | | By Eugene Daniels and Rachael Bade | | Presented by |  | | | With help from Eli Okun, Garrett Ross and Bethany Irvine
|  | DRIVING THE DAY | | | | 
Last night, the House and Senate passed a spending patch that funds the government at its current levels until March. | Angelina Katsanis/POLITICO | FOOD FOR THOUGHT — “The ABC Settlement Doesn’t Mean the Press Is Caving to Trump,” by Ankush Khardori: “There were good legal reasons for the network to avoid a trial.” THE SHUTDOWN THAT WASN’T — So, what the hell was that about? This week, in the closing days of the 118th Congress, a bipartisan continuing resolution that would keep the government open was killed by President-elect DONALD TRUMP and his loudest ally, ELON MUSK, and then ultimately replaced by a bill that did … mostly the same things. Last night, the House and Senate passed a spending patch that funds the government at its current levels until March (when they get to do this all over again), provides financial aid for farmers and delivers $110 billion in disaster relief after devastating storms this fall. (As of this newsletter being sent, the bill is awaiting President JOE BIDEN’s signature.) But it’s what isn’t in the bill that is really the most interesting. — Lifting the debt limit. Trump was clear that he wanted this in the package so that he wouldn’t have to deal with a potential debt limit breach — and the potentially disastrous economic fallout — during his coming presidency. “Congress must get rid of, or extend out to, perhaps, 2029, the ridiculous Debt Ceiling,” Trump posted on social media yesterday. “Remember, the pressure is on whoever is President.” And despite playing footsie with that possibility, lifting the debt limit was cut from the bill after it was clear that adequate support for the proposal — which is highly controversial, especially among small-government conservatives — was not there. Instead, the debt limit will need to be raised in the coming months — exactly what Trump was trying to avoid. — Year-round ethanol gasoline. Earlier versions of the continuing resolution included provisions that would allow the year-round sale of "so-called E-15 gasoline with a higher amount of ethanol, a major priority for lawmakers from corn-growing regions,” Jennifer Scholtes and Katherine Tully-McManus write. That was stripped out from the final version. Sen. JONI ERNST (R-Iowa): “I’m disappointed that E-15 wasn’t in there, very, very disappointed. But I do know that President Trump has been a great supporter of ethanol. So we’ll readdress it.” — A fight against so-called “revenge porn.” The proposal would have forced social media companies “to remove so-called revenge porn and intimate imagery posted without consent,” per Jennifer and KTM, who shrewdly observe that both Trump and Musk own multi-billion-dollar social media companies — a reality that Sen. TED CRUZ (R-Texas), the sponsor of the anti-revenge porn policy, said is “completely unrelated” to the proposal getting axed. — A crackdown on PBMs. Pharmacy benefit managers have come under scrutiny from members of both parties, who suggest that PBMs are middlemen who raise the cost of prescriptions for Americans. The pharmaceutical industry lobbied against anti-PBM provisions. “Well, pharma tends to win, in the end. That’s been a consistent problem up here,” said Sen. JOSH HAWLEY (R-Mo.). “So hopefully, in the new Congress, we’ll be able to do something about it.” — Restrictions on U.S. investments in China. A proposal to expand on Treasury Department restrictions on U.S. investments in A.I. and tech sectors that could pose risks to U.S. national security was dropped from the bill amid opposition from Elon Musk, who — as the wealthiest person in the world and head of Tesla — has major business interests in China. Yesterday, Rep. ROSA DeLAURO (D-Conn.) wrote in a letter that Musk’s “extensive investments in China in key sectors and his personal ties with Chinese Communist Party leadership … calls into question the real reason for Musk’s opposition to the original funding deal,” Reuters’ David Shepardson reports. Musk responded by posting “a number of critical posts about DeLauro on X on Friday including one that said she ‘needs to be expelled from Congress!’” Watch for Dems to keep up this line of inquiry and attack. THE BIGGER PICTURE: The whole saga is a reminder, especially for Republican leadership, of what things will be like with Trump back in office. For the last few years, Congress has gotten used to a fairly hands-off approach from the president in their negotiations. It’s clear that’s all over. As NYT’s Michael Shear and Maggie Haberman report, “the episode demonstrated a well-established pattern by Mr. Trump. He often purposely blew up congressional negotiations during his first term, often with a tweet, only to be forced to retreat or give up his position in the face of an angry reaction from both allies and adversaries.” And yet, they write, “Trump has benefited politically over the long run by seeking to bend lawmakers to his will. His supporters returned him to the White House in the election this year in part to resume that effort, but with Republicans in control of both chambers of Congress and a president who has a better understanding of how Washington works.” At the same time, the spectacle raises new doubts about all the talk of complete GOP unity after the election, as intraparty squabbles burst directly into view. Dozens of GOP lawmakers defied the incoming president, and roughly three dozen House Republicans voted against the bill, which was backed by more Democrats than members of the GOP. Finger-pointing has replaced all of that “unity” talk, and the fissures of real deal fiscal hawks vs. those that just talk the talk is on full display and ready for a central role in the early months of Trump’s administration. Related read: “Meet the 38 Republicans Who Defied Trump on the Spending and Debt Deal,” by NYT’s Annie Karni Good Saturday morning. Today’s the winter solstice — the longest night of the year. Be sure to get some sunlight. Thanks for reading Playbook. Drop us a line: Rachael Bade and Eugene Daniels.
| | | | A message from Instagram: Congress can help keep teens safe online today.
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Tell lawmakers: support a national standard requiring app store parental consent and age verification for teens. | | | THE PLAYBOOK INTERVIEW: KIRSTEN HILLMAN — Lately, Canada has been caught in Trump’s line of sight, with the president-elect trolling embattled PM JUSTIN TRUDEAU online and threatening to impose a 25% tariff on Canadian imports. This week, Trudeau’s finance minister resigned — citing Trump’s threat — and nearly caused the whole Canadian government to implode. So, has Trump broken Canada? Is he serious about starting a trade war with one of our top economic partners? And if you’re an American ally, how do you even reckon with that? To get to the bottom of those questions, we called-up Canada’s ambassador to the U.S., KIRSTEN HILLMAN. You can listen to their conversation right now on the Playbook Deep Dive podcast, which dropped just in time for your holiday travels. Some highlights … On Trump calling Trudeau the “governor of the 51st state”: “I think that the president-elect is having a bit of fun. He started a joke during that dinner. And just to put it into context … [t]here was a lot of joking back and forth and that joke got picked up. And I think he's enjoying continuing to run with it because it's getting attention. … [I]t's not [disrespectful]. I mean, look: Canada can take it. We have a strong sense of who we are. We can dish it out. We can take it. And at some level, I actually have to say, we often think of Canada and the United States as being like family, like cousins or siblings.” On Trump’s tariff threat accelerating their migration crackdown: “Obviously, a threat of a 25% tariff on a half-trillion dollars worth of trade a year, which is what Canada exports … [i]t got everyone's attention. On the border though, I have to say that having the border as the issue that the president-elect wanted to work on with us right off the bat is a welcome development. And people may not perceive it that way. … [W]e looked at the things that we were planning to do, and we accelerated. … But it wasn't like anything that was announced wasn't well within Canada's domestic interests anyway, that we wouldn't have wanted to do anyway. And we are very happy and eager to cooperate more with your police services, your intelligence services.” Listen now on Apple Podcasts or Spotify. FIRST IN PLAYBOOK — Intuit, the business software company behind such products as TurboTax and QuickBooks, is joining other major companies in corporate America in donating to Trump's inauguration, our Daniel Lippman writes in. It is giving $1 million "as part of our decades-long commitment to bipartisan advocacy," a company spokesperson said in a statement to Playbook. "Intuit is committed to ensuring our customers’ voices are heard on important issues, and our expanded participation in the democratic process reflects our growth as a company and the variety of policy issues that impact the approximately 100 million diverse consumers and businesses we serve.” Intuit has numerous interests in Washington that would incentive it to gain favor with the incoming Trump administration. It has spent more than two decades lobbying against the IRS making it easier to file people's taxes online, and even argued that a Biden administration IRS pilot program for free online filing would hurt Black Americans.
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In a major win for D.C. Mayor Muriel Bowser, the Senate voted by unanimous consent to pass the Robert F. Kennedy Memorial Stadium Campus Revitalization Act. | Alex Brandon/AP Photo | 1. WHILE YOU WERE SLEEPING: Aside from funding the government, the Senate passed two particularly important pieces of legislation late last night … Expanding Social Security benefits to public sector workers: The bill, which passed the House in November, “will expand Social Security benefits to public sector workers who also collect pensions,” writes Anthony Adragna. “According to the Congressional Budget Office, the measure will cost more than $190 billion over the next decade and means the Social Security trust fund will ‘be exhausted roughly half a year earlier than it would be under current law.’” Giving D.C. control over RFK Stadium: In a major win for the city of Washington and Mayor MURIEL BOWSER, shortly after 1 a.m., the Senate voted by unanimous consent to pass the Robert F. Kennedy Memorial Stadium Campus Revitalization Act, which passed the House all the way back in February. This was not really on anyone’s radar: Legislation on the long-decaying stadium was cut from the House’s government spending patch just days ago following a misinformation campaign about it from Elon Musk, as WaPo’s Meagan Flynn, Erin Cox and Sam Fortier note. Up next for Bowser is trying to woo the NFL’s Commanders back to Washington. 2. JUDGING THE JUDGES: This morning, Senate Democrats concluded their extensive investigation into the ethics practices among Supreme Court justices, and issued a report blasting Justices SAMUEL ALITO and CLARENCE THOMAS for “accepting expensive gifts from wealthy benefactors and [slammed] Chief Justice JOHN ROBERTS for a lackadaisical response to ethical lapses by his colleagues,” Josh Gerstein reports. The report also “took particular aim at the Judicial Conference of the United States, a policy-making body run by federal judges that sets ethics guidelines and advises on how to apply them,” Josh writes. However, with an incoming GOP Senate majority and Trump’s impending return to the White House, it’s unlikely any legislation related to judicial ethics reform will see the light of day anytime soon. From the report: “Whether failing to disclose lavish gifts or failing to recuse from cases with apparent conflicts of interest, it’s clear that the justices are losing the trust of the American people at the hands of a gaggle of fawning billionaires,” Senate Judiciary Chair DICK DURBIN (D-Ill.) wrote. 3. LOST IN TRANSITION: “Biden Withdraws Proposed Regulations on Student Loans and Trans Athletes,” by NYT’s Zach Montague and Vimal Patel: “The regulations were, at one time, among the administration’s top education policy priorities, and the decision to pull down the proposed regulations was a tacit acknowledgment that they would go nowhere under the [second Trump] administration. … The decision helped ensure that the open proposals could not be quickly rewritten, and that the Trump administration would have to at least start the process of introducing its own regulations from scratch.” 4. PARDON ME?: In the final days of his presidency, Biden is weighing whether to commute the sentences of “most, if not all, of the 40 men on the federal government’s death row,” in a decision that could come as soon as Christmas day, WSJ’s Jess Bravin and C. Ryan Barber scoop. The renewed discussion around clemency comes after several civil rights groups and religious organizations have pushed the White House in recent weeks to address the pardons before Trump takes office: “[T]he effort gained momentum earlier this month after POPE FRANCIS, in his weekly address, prayed for the commutation of America’s condemned inmates … Biden, a devout Catholic, spoke with Francis on Thursday and is scheduled to meet with him at the Vatican next month.” A weighty history: Of the 40 federal inmates facing execution, 36 were sentenced under a 1994 bill written by Biden that designated dozens of new capital offenses, WaPo’s Matt Viser reports. Now, inmates sentenced under the law are pointing to systemic problems in the older sentencing laws.
| | | | A message from Instagram:   | | | 5. FOR THOSE KEEPING COUNT: In a major victory for Democrats, the Senate voted to confirm two of Biden's nominees to serve as court judges in California, officially securing the president’s 235th appointment to the federal judiciary — one more than Republicans did in President-elect Trump’s first term, Reuters’ Nate Raymond reports. “Biden now ranks No. 2 in history for the most judicial appointments in a single four-year term, beating the 234 Trump named,” Raymond writes. (No. 1 is JIMMY CARTER, with 262.) The appointments capped off a four-year effort by Democrats to reform a judiciary system that had drifted to the right under Trump’s first term. Now, “Democrats are poised to put pressure on Republicans to maintain a practice that requires sign-off from a state’s two senators for lower-level spots on the federal bench,” Anthony Adragna reports. “That’s a boon for Democrats. Because of population size, there are more judicial slots in larger blue states like California, New York and Illinois — ones that will require two Democratic sign-offs for the Trump administration to fill.” 6. THE LONG GAME: Trump’s pick to lead the IRS may have some questionable credentials behind his name, according to a new investigation by ProPublica’s Jeremy Kohler and Alex Mierjeski. Former Rep. BILLY LONG (R-Mo.) has marketed himself as a “certified tax and business adviser” since leaving office, often adding “CTBA” behind his name on social media accounts. But tax experts say “that they have never heard of CTBA as a credential in the tax profession. The designation is offered by a small Florida firm, Excel Empire, which was established just two years ago and only requires attendance at a three-day seminar. That is in stark contrast to the 150 credit hours and the rigorous exams required to become a certified public accountant, a standard certification for tax accountants.” 7. LAY OF THE LAND: “America’s Farm Recession Is Here. One Early Response Is Sending Billions to Farmers,” by WSJ’s Patrick Thomas: “The U.S. farm sector finds itself in another rough patch. Net farm income declined 4% this year to $141 billion after falling about 20% last year, according to the Agriculture Department. … Some of the world’s largest grain shippers and pesticide suppliers are girding for a shrinking farm economy by cutting costs or laying off workers. … Agriculture trade groups are circulating lists of requests to lawmakers extending beyond direct payments that could buffet against the current market slump.” 8. I’M STEEL STANDING: “Nippon Steel alleges undue White House influence on doomed deal review, letter says,” by Reuters’ Alexandra Alper: “The accusation was made in a Dec. 17 letter, signed by counsel for Nippon Steel and U.S. Steel and seen by Reuters, to the Committee on Foreign Investment in the United States (CFIUS). … Specifically, their Dec. 17 letter claims Biden may have weighed in on the deal to please United Steelworkers (USW) President DAVID McCALL, who opposes the tie-up, and endorsed Biden for President soon after he announced his opposition to the merger.” 9. BANK ON IT: “FDIC Suspends Bonuses for Senior Officials Under Investigation for Misconduct,” by WSJ’s Gina Heeb and Rebecca Ballhaus: “The Federal Deposit Insurance Corp. has suspended pay bonuses for roughly two dozen executives under investigation for misconduct, a year after a Wall Street Journal investigation revealed a toxic and sexualized workplace culture at the bank regulator. In a closed session this week, the FDIC board unanimously approved a proposal that would also scrap bonuses for executives and managers if allegations against them are substantiated, according to people familiar with the matter.”
| | | | POLITICO Pro's unique analysis combines exclusive transition intelligence and data visualization to help you understand not just what's changing, but why it matters for your organization. Explore how POLITICO Pro will make a difference for you. | | | | | CLICKER — “The nation’s cartoonists on the week in politics,” edited by Matt Wuerker — 17 funnies
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Dave Granlund - politicalcartoons.com | GREAT WEEKEND READS: — “The Crumbling Foundation of America’s Military,” by Mark Bowden for The Atlantic: “The U.S. failed to produce weapons and ammunition fast enough to supply Ukraine. Could it equip its own armed forces in the event of war?” — “How rich musicians billed American taxpayers for luxury hotels, shopping sprees, and million-dollar bonuses,” by Jack Newsham and Katherine Long for Business Insider: “Pop stars took advantage of the SVOG grant, using COVID relief funds for luxury spending. Lil Wayne bought Balenciaga and flew private.” — “The Story of One Mississippi County Shows How Private Schools Are Exacerbating Segregation,” by ProPublica’s Jennifer Berry Hawes with Nat Lash and Mollie Simon: “A new ProPublica analysis shows a stark pattern across states in the Deep South: Alongside majority-Black public school districts, a separate web of private academies are filled almost entirely with white students.” — “Fentanyl Almost Killed Michael Brewer. Now He Wants Snap to Pay,” by Olivia Carville for Bloomberg Businessweek: “A lawsuit arguing that Snapchat helped dealers sell children deadly counterfeit drugs could change the internet as we know it.” — “Why seas are surging,” by WaPo’s John Muyskens, Simon Ducroquet, Kevin Crowe, Shannon Osaka and Niko Kommenda: “What one tide gauge reveals about America’s climate future.” — “He Built a Wellness Empire While Adventuring With Robert F. Kennedy Jr.,” by NYT’s Brendan Borrell: “Dr. Mark Hyman, a ‘functional medicine’ proponent and longtime friend of Robert F. Kennedy Jr., is finding powerful allies in his bid to treat disease with blood tests and supplements.”
| | | PLAYBOOKERS | | | Marco Rubio’s son scored a touchdown in Florida’s Bowl Game. HAPPY BIRTHDAY: Rep. Zoe Lofgren (D-Calif.) … Naomi Biden … WSJ’s Annie Linskey … WaPo’s Karen Heller … John Coale … Kelly Sadler of The Washington Times … Kelly Wallace … CBS’ Vlad Duthiers … Elena Waskey of the Washington Center for Equitable Growth … Sam LaHood of Bondi Partners … Roz Brooks … Jessica Brady Reader … Fox News’ Caroline Whiteman … Colleen Litkenhaus Tague … Lisa Kountoupes of KDCR Partners … Alejandra Lopez-Fernandini … Lyndsey McKenna … White House’s Michael Negron … David Goldfein ... Brian Goldsmith … former Treasury Secretary Steven Mnuchin … Brian Heindl … Hip-Politics’ Cameron Trimble … French President Emmanuel Macron … Dave Stroup … Jane Fonda … Julia B. Mellon … Tara Spicer THE SHOWS (Full Sunday show listings here): FOX “Fox News Sunday”: Sen. Markwayne Mullin (R-Okla.) … Sen. Ben Cardin (D-Md.) … Dallas Jenkins. Panel: Guy Benson, Hans Nichols, Penny Nance and Juan Williams. MSNBC “The Weekend”: acting Labor Secretary Julie Su … Rep. Angie Craig (D-Minn.) … Rep.-elect Laura Gillen (D-N.Y.) … George Conway. NBC “Meet the Press”: Sen. Raphael Warnock (D-Ga.) … Sen. James Lankford (R-Okla.). Panel: Doris Kearns Goodwin, Antonia Hylton and Russell Moore. CNN “State of the Union”: Sen. Bill Hagerty (R-Tenn.) … Sen. Chris Coons (D-Del.). Panel: Bakari Sellers, Scott Jennings, Karen Finney and Kristen Soltis Anderson. NewsNation “The Hill Sunday”: Rep. Ami Bera (D-Calif.) … Rep. Tom McClintock (R-Calif.). Panel: Susan Page, Robert Doar, Jasmine Wright and David Swerdlick. ABC “This Week”: Sen. John Fetterman (D-Pa.) … Sen.-elect John Curtis (R-Utah) … Chris Christie. Panel: Donna Brazile, Asma Khalid, Ramesh Ponnuru and Jonathan Martin. MSNBC “The Sunday Show”: Rep. Jasmine Crockett (D-Texas) … Larry Jefferson. CNN “Inside Politics Sunday”: Sen. Joe Manchin (I-W.Va.) Panel: Dave Weigel, Molly Ball, Olivia Beavers and Susan Page. 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 Playbook Daily Briefing producer Callan Tansill-Suddath.
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