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Biden's art of the deal

Presented by the American Health Care Association and National Center for Assisted Living: The power players, latest policy developments, and intriguing whispers percolating inside the West Wing.
Feb 01, 2023 View in browser
 
West Wing Playbook

By Sam Stein, Eli Stokols and Lauren Egan

Presented by the American Health Care Association and National Center for Assisted Living

Welcome to POLITICO’s West Wing Playbook, your guide to the people and power centers in the Biden administration. With help from Allie Bice.  

Send tips | Subscribe here| Email Eli | Email Lauren

There are several ways in which the current debt ceiling standoff is different from the one that took place a dozen years ago, when the country was brought to the financial brink.

But the most profound one, for now, is the simplicity in JOE BIDEN’s approach. The White House is determined to place as much of the early debate in the public domain. This doesn’t mean having the press cover every conversation (sadly, there was no access to today’s meeting with House Speaker KEVIN MCCARTHY).

But it does mean publicizing the meetings and clarifying demands. As one person familiar with the White House’s thinking put it: “If you know somebody wants to take a hostage, you don’t go into a back room to just let them do it and then start negotiations. You make them say it out loud so everybody can hear, and everybody knows who is who.”

This is the inverse of how the process played out back in 2011.

Back then, both sides started from a broad and fairly nebulous position: there would be discussions around cutting the deficit and raising the debt ceiling. But there was little in terms of actual overlap or specifically stated priorities as engagement began.

A relatively wide bipartisan working group was led by then Vice President Biden and Majority Leader ERIC CANTOR. They held a forgettable opening session at the Blair House, the historic guest house across from the White House. And their talks famously bombed out when, predictably, it became clear that Republicans opposed tax hikes and Democrats wouldn’t embrace steep spending cuts without something in exchange.

As the Biden-Cantor talks collapsed, an entirely different set of discussions between President BARACK OBAMA and House Speaker JOHN BOEHNER began. But they took place, initially, in secret, with each side hoping they could forge a consensus that others had been unable to find. Again, failure ensued.

This go around, the Biden White House is consciously tackling the standoff from the opposite end.

The meeting with McCarthy was neither a Blair House summit nor a hush-hush backchanneling between the two principles. It was a quickly publicized effort by each side with almost no pretense that success would bloom from it.

McCarthy’s office did not return a request for comment as to what they hoped would come of it.

But for Biden specifically, it was an opportunity to get McCarthy to answer two basic questions: Does he believe default should be avoided at all costs, and does he have a proposal for lifting the debt ceiling that can pass the House? There was no expectation that either of those answers should stay out of public view.

“If Speaker McCarthy is demanding cuts to Medicare and Social Security as many in his Conference want, he should be transparent with the American people, not just bring it up behind closed doors,” said JESSE LEE, senior adviser for communications to the National Economic Council. “The President will put forward his budget, which builds on his record of cutting the deficit while investing in our economy and lowering costs for families — and urges Speaker McCarthy to outline his plans.”

After the meeting was over, both McCarthy and the White House used the traditional platitudes to describe it: “productive” and “frank” and “straightforward.” They would, the White House said, “continue the conversation.” But the White House readout made clear they weren’t inviting more negotiation around the debt ceiling specifically, at least for now.

“The President,” the statement read, “welcomes a separate discussion with congressional leaders about how to reduce the deficit and control the national debt while continuing to grow the economy.” (The emphasis is ours.)

MESSAGE US —Are you ALEXANDRIA PHILLIPS, the director of strategic communications at USAID? We want to hear from you. And we’ll keep you anonymous! Email us at westwingtips@politico.com.

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A message from the American Health Care Association and National Center for Assisted Living:

Nursing homes are doing everything they can to recruit caregivers, but can't find workers. The labor crisis in long term care is affecting all aspects of health care, creating bottlenecks in hospitals as patients wait for beds in nursing homes. A federal staffing mandate without resources to help with recruitment would force nursing homes to limit the number of residents they can serve. Learn more about the solutions to the labor crisis.

 
POTUS PUZZLER

With help from the White House Historical Association 

Which first lady was the first to hold an official press conference?

(Answer at the bottom.)

The Oval

THE SEARCH CONTINUES… The FBI on Wednesday searched the president’s vacation home in Rehoboth, Del., the latest move in the investigation of his possession of classified documents, our CHRISTOPHER CADELAGO reports. BOB BAUER, Biden’s personal lawyer, said in a statement that “no documents with classified markings were found,” but that “the DOJ took for further review some materials and handwritten notes that appear to relate to his time as Vice President.”

HARRIS IN MEMPHIS: Vice President KAMALA HARRIS spoke at the funeral Wednesday of TYRE NICHOLS and called for Congress to take up the police reform measure tabled during the last Congress. “We demand that Congress pass the George Floyd Justice and Policing Act — Joe Biden will sign it,” Harris said. “We should not delay, and we will not be denied. It is non-negotiable.”

IT’S OFFICIAL: Biden held an event Wednesday evening to thank outgoing chief of staff RON KLAIN and to welcome JEFF ZIENTS to the role. “For the press, I want to put an end to the rumors that the rest of the staff has not quit because he’s leaving,” Biden joked, adding that there were “a lot of Klain-iacs in the room.”

Klain, through tears, praised the work the team had done. He also had a lot else to say. The best White House souvenir he got as chief of staff was a rock from LOUISA TERRELL, the head of White House legislative affairs. Apparently his close aide, REMI YAMAMOTO, failed to convince him to buy a new suit for TV. He plans to be the family dog walker, but listed his time frame for doing so as the next two years. And he notably said he looked forward to being by Biden’s side “when” he runs for president (not if).

WHAT THE WHITE HOUSE WANTS YOU TO READ: Anything about how good the job market is looking, following new figures from the Labor Department Wednesday: “The nation’s demand for labor only got stronger in December, as job openings rose slightly to 11 million,” NYT’s LYDIA DEPILLIS reports. “That brings the number of posted jobs per available unemployed worker, which had been easing in recent months, back up to 1.9.”

WHAT THE WHITE HOUSE DOESN’T WANT YOU TO READ: This piece by NBC News’ MARK MURRAY detailing some concerning poll results for the president following the news drop about the classified documents: “His lowest marks come on being honest and trustworthy (34 percent), having the ability to handle a crisis (32 percent), being competent and effective as president (31 percent), having the necessary mental and physical health to be president (28 percent) and uniting the country (23 percent).”

NOW HE’S AN OIL MAN: The administration has taken a step toward approving ConocoPhillips’ controversial “Willow” oil drilling project in Alaska’s National Petroleum Reserve. The Bureau of Land Management issued a report Wednesday approving a scaled-down version of the project. The Interior Department’s statement notes that this is not a final decision and that it still has “substantial concerns.” But for opponents and proponents alike, the report “sent a strong signal that it is likely to give the project a green light,” LISA FRIEDMAN writes in the NYT.

It’s a perplexing move for a president who vowed during his campaign to end new BLM leases and has made climate a central focus of his presidency. It comes about a week after Biden restored protections for Alaska’s Tongass National Forest that had been rolled back by former President DONALD TRUMP. But it’s somewhat less perplexing when you recall thata major supporter of the project is Sen. LISA MURKOWSKI (R-Alaska), who has backed several bipartisan efforts over the last two years. She remains one of Biden’s favorite Republicans and continues to have real influence on the president.

LET’S GET PHYSICAL: Biden’s annual physical exam is scheduled for Feb. 16, press secretary KARINE JEAN-PIERRE confirmed Wednesday. The results will be made public immediately after, she said.

OPEN ACCESS TO THE DOC, ALEX!!!: It’s every reporter’s worst nightmare. Yahoo News’ ALEXANDER NAZARYAN, Wednesday’s print pooler, accidentally forwarded a Google doc link with the email subject line “FOR EDIT: Policing after Tyre Nichols'' to the entire White House press corps as well as the press wranglers distribution list. We promise we didn’t click on the link, Alex!! [Editor’s note: Sam clicked the link but it was restricted access].

 

JOIN POLITICO ON 2/9 TO HEAR FROM AMERICA’S GOVERNORS: In a divided Congress, more legislative and policy enforcement will shift to the states, meaning governors will take a leading role in setting the agenda for the nation. Join POLITICO on Thursday, Feb. 9 at World Wide Technology's D.C. Innovation Center for The Fifty: America's Governors, where we will examine where innovations are taking shape and new regulatory red lines, the future of reproductive health, and how climate change is being addressed across a series of one-on-one interviews. REGISTER HERE.

 
 
THE BUREAUCRATS

WHO RUN THE WORLD?: SHALANDA YOUNG, the director of the Office of Management and Budget, is part of a group of female leaders in Washington “trying to avoid a spending train wreck in Congress,” NYT’s EMILY COCHRANE reports. “For the first time, the leaders of the House and Senate Appropriations Committees are all women, as is the top White House budget official. Can they avert a fiscal disaster? They’re determined to try.” Read the full piece here.

MAYORKAS' TURN IN THE BARREL: House Republican leadership is beginning its efforts to potentially impeach Homeland Security Secretary ALEJANDRO MAYORKAS over his handling of the southern U.S. border, our JORDAIN CARNEY reports.

DUCKS FLY TOGETHER: Labor Secretary MARTY WALSH is reportedly a finalist to lead the NHL Players Association, according to our NICK NIEDZWIADEK, LISA KASHINSKY and JONATHAN LEMIRE. The NHLPA, in a statement, didn’t deny it either.

In other Boston-related sports news, TOM BRADY announced Wednesday morning in a video that he is retiring from the NFL and not planning to pull another KATE BEDINGFELD and reverse his decision this time around. Lemire, if you need to take a day, we understand.

Filling the Ranks

ECONOMIC RESHUFFLE: Biden is expected to appoint two veteran economic officials to top advisory posts, just as the administration works to avert a recession, our BEN WHITE reports. The president is set to appoint Federal Reserve Vice Chair LAEL BRAINARD to be the next National Economic Council director, replacing outgoing director BRIAN DEESE; and JARED BERNSTEIN to serve as the chair of the Council of Economic Advisers, replacing outgoing chair CECILIA ROUSE.

PERSONNEL MOVES: ALEXANDRIA PHILLIPS is now director of strategic communications at USAID, DANIEL LIPPMAN has learned. She most recently was communications director for Surgeon General VIVEK MURTHY and has also previously worked for Sen. KIRSTEN GILLIBRAND (D-N.Y.), HILLARY CLINTON and the State Department.

 

A message from the American Health Care Association and National Center for Assisted Living:

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Agenda Setting

HERE WE GO AGAIN: The Federal Reserve on Wednesday moved to increase interest rates by a quarter of a percentage point, putting the borrowing rate between 4.5 percent and 4.75 percent, our VICTORIA GUIDA reports. Although the central bank has indicated it expects to raise rates to 5 percent, more increases will depend on whether or not inflation continues to ease up.

YES…. MORE SANCTIONS: The Treasury Department on Wednesday issued another round of sanctions on 22 people who helped Russia obtain weapons, another step in the administration’s crackdown on the nation since it invaded Ukraine, our KELLY GARRITY reports. The sanctions are aimed at Russian arms dealer IGOR ZIMENKOV, his son and several members of their network.

What We're Reading

What Ron Klain Learned in the White House (The New Yorker’s Evan Osnos)

Opinion: How Will Joe Biden Be Remembered in 50 Years? (NYT’s Bret Stephens)

Apple and Google app stores get thumbs down from White House (AP’s Fatima Hussein)

From Orange County to the Texas border: How Bill Melugin became a Fox News fixture (LAT’s Stephen Battaglio)

 

DOWNLOAD THE POLITICO MOBILE APP: Stay up to speed with the newly updated POLITICO mobile app, featuring timely political news, insights and analysis from the best journalists in the business. The sleek and navigable design offers a convenient way to access POLITICO's scoops and groundbreaking reporting. Don’t miss out on the app you can rely on for the news you need, reimagined. DOWNLOAD FOR iOS– DOWNLOAD FOR ANDROID.

 
 
The Oppo Book

You can’t say Cecilia Rouse, Biden’s outgoing chair of the Council of Economic Advisers, isn’t self aware.

When asked about her most “annoying/bad habit” in an interview with the American Economic Association, she said she “tends to try to finish people’s sentences.”

“It drives most people — especially my husband — crazy,” she added.

POTUS PUZZLER ANSWER

First lady ELEANOR ROOSEVELT on March 6th, 1933, became the first first lady to conduct an official press conference. The event became a regular interaction and happened in the White House’s Red Room, according to the association.

A CALL OUT — Do you think you have a harder trivia question? Send us your best one about the presidents with a citation and we may feature it.

Edited by Eun Kyung Kim and Sam Stein.

A message from the American Health Care Association and National Center for Assisted Living:

The long term care community is facing a historic labor crisis, forcing more nursing homes to limit the number of residents they can serve and some facilities may permanently close. Nursing homes are doing everything they can to recruit caregivers, but can’t find workers.

A federal staffing mandate without resources to help with recruitment is not the answer. It will only reduce access to care for our nation’s seniors. The labor crisis has already created bottlenecks in hospitals as patients wait for beds in nursing homes.

We need an investment in our long term care workforce to build a pipeline of caregivers - not unfunded staffing mandates. A one-size-fits-all approach is not the solution. Help us hire, don’t require.

 
 

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Eli Stokols @EliStokols

Lauren Egan @Lauren_V_Egan

Allie Bice @alliebice

 

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