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Biden floats his budget balloon to Congress

Presented by Panasonic: A play-by-play preview of the day’s congressional news
Mar 09, 2023 View in browser
 
POLITICO Huddle

By Katherine Tully-McManus

Presented by Panasonic

With an assist from Nicholas Wu and Jordain Carney 

Senate Minority Leader Mitch McConnell speaks to reporters following a policy meeting  at the Capitol on March 7, 2023.

Senate Minority Leader Mitch McConnell earlier this week. | J. Scott Applewhite/AP Photo

McCONNELL HOSPITALIZED — Senate Minority Leader Mitch McConnell was hospitalized late Wednesday after a fall. David Popp, the Kentucky Republican’s communications director, said in a statement: “This evening, Leader McConnell tripped at a local hotel during a private dinner. He has been admitted to the hospital where he is receiving treatment.”

BIDEN’S BUDGET BALLOON — The midday release of President Joe Biden’s third budget will land on Capitol Hill like a deflated balloon.

It’s a cliche that the president’s budget is dead on arrival on Capitol Hill or lands with a thud, but this year the anticlimactic feeling is intensified by a multi-part release schedule that won’t pack the same punch without the coveted appendices with program-level numbers.

Budget fans, hold your fire. It is true that Biden’s budget release is an opening volley for many, many fights ahead, from the debt limit to spending deals, the Farm Bill and much in between. But it is also the overture to his official announcement that he’ll run for reelection.

What we know: Biden’s budget won’t feature tax increases on anyone making less than $400,000, but is expected to call for boosting taxes for billionaires. It will also include a plan Biden has touted to extend Medicare’s lifecycle by increasing the tax rate on the program for Americans making more than $400,000. At the same time, Biden wants to close a loophole that he says has shielded some high earners and rich business owners from paying that same tax. Biden’s proposal would also allow Medicare to negotiate the cost of more prescription drugs, funneling about $200 billion in savings into the program. (H/t Caitlin for holding your Huddle host’s hand through this preview.)

To the battle stations: The cabinet is wasting no time and will start heading to the Hill on Friday to defend Biden’s proposals. First up will be Treasury Secretary Janet Yellen at the House Ways and Means Committee. Chair Jason Smith (R-Mo.) was adamant that Yellen’s appearance be prompt and he lamented delays in the Democratic controlled House. OMB Director Shalanda Young is expected to appear before the Senate Budget Committee on March 15.

Itching for the appendix: I see you, budget wonks. Fear not, those precious spreadsheets and “analytical perspectives” are expected on March 15.

What some folks are watching: Your Huddle host surveyed members Wednesday to see what their first CTRL-F search would be for once they get the budget documents.

Rep. August Pfluger (R-Texas): "If the President presents a budget that doesn't balance and includes funding for his radical climate agenda but not policies to enhance border security and end the crisis at the southern border, we will know he intends to put the needs of Americans last for yet another year."

Rep. Mike Johnson (R-La.) is looking at: “The increases he’ll propose in spending with no solution for how to fund it except raising taxes, and you can’t do that in a period of high inflation.” He continued: “We’re not going to put a lot of stock in it.”

The common thread for House Republicans who talked to Huddle was that they’re looking at the topline numbers before digging into specific programs.

Sen. Chuck Grassley (R-Iowa) told my colleagues at Politico Pro that he’s looking for a “ridiculous increase in food stamps” in the president’s budget. He says food assistance should be reset to pre-pandemic levels and is proposing that the funding reflect the consumer price index plus inflation.

Rep. Deborah Ross (D-N.C.) has two top searches: “I of course would love to see him commit to the child tax credit and child care issues.” As a member of the Select Subcommittee on coronavirus she says “we need a plan for what is going to happen going forward because the coronavirus is still with us.”

Rep. Steny Hoyer (D-Md.) will be eyeing what’s allocated for federal employees and the technology modernization fund. (He’ll be glad to see the proposed largest federal pay increase in 43 years.)

RELATED: Conservative caucus offers ‘policy menu’ for debt limit negotiations, from Emily Brooks at The Hill; House G.O.P. Prepares to Slash Federal Programs in Coming Budget Showdown from Carl Hulse and Catie Edmondson at The New York Times; Biden budget aims to cut deficits nearly $3T over 10 years, from Josh Boak at The Associated Press

 

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GOOD MORNING! Welcome to Huddle, the play-by-play guide to all things Capitol Hill, on this Thursday, March 9, where just because it’s Budget Day doesn’t mean you can’t get yourself a little treat.

BEWARE OF THE BREACH — Bad news for thousands of staff and many lawmakers who get their health insurance through DC Health Link. Both chambers were alerted Wednesday that DC Health Link suffered “a significant data breach” that has exposed the personally identifiable information of “hundreds of Member and House staff” plus those in the Senate, according to the FBI. (No one enrolled in the Federal Employee Health Benefits Program is impacted.)

House Speaker Kevin McCarthy (R-Calif.) and Minority Leader Hakeem Jeffries (D-N.Y.) called the breach “egregious” and noted that the breach “compromised the personal information of numerous House Members, spouses, dependents and employees in both parties,” but they did not identify affected members.

“Right now, our top priority is protecting the safety and security of anyone in the Capitol Hill community affected by the cyber hack,” the House leaders wrote, noting they had written to DC Health Link for further information on the breach, and that they are being “continuously briefed” by the FBI and the U.S. Capitol Police about the situation.

House Chief Administrative Officer Catherine L. Szpindor urged those impacted to freeze their credit through the three major credit bureaus, which “should prevent anyone, including you, from opening a credit card, or taking out a loan in your name.”

She stressed that “that at this time, it does not appear that Members or the House of Representatives were the specific target of the attack.” That’s a major signal, given that the CAO oversees cybersecurity for the House.

House Administration Committee Chair Bryan Steil (R-Wis.) “is aware of the breach and is working with the CAO to ensure the vendor takes necessary steps to protect the PII of any impacted member, staff, and their families.”

#TBT… Some Huddle readers may remember what a knock down, drag out fight it was to decide exactly who on Capitol Hill would be using the D.C. health insurance exchange as Obamacare was being hammered out. Sen. Chuck Grassley (R-Iowa) sponsored the original amendment requiring lawmakers and staffers to enter the Obamacare exchanges but there were hiccups about subsidies.

RIDING THE RAILS — Norfolk Southern CEO Alan Shaw will be grilled by senators Thursday at the first Senate hearing on the train derailment and release of toxic chemicals in East Palestine, Ohio.

"I am deeply sorry for the impact this derailment has had on the people of East Palestine and surrounding communities and I am determined to make it right," Shaw will tell the Senate Environment and Public Works Committee. "I pledge that we won’t be finished until we make it right."

Sens. Sherrod Brown (D-Ohio), J.D. Vance (R-Ohio) and Bob Casey (D-Pa.) will also testify. Brown and Vance introduced bipartisan railroad safety legislation last week.

RELATED: Feds looking into Norfolk Southern's handling of additional reported hazmat concern weeks after East Palestine, from Lucien Bruggeman at ABC News

 

STEP INSIDE THE WEST WING: What's really happening in West Wing offices? Find out who's up, who's down, and who really has the president’s ear in our West Wing Playbook newsletter, the insider's guide to the Biden White House and Cabinet. For buzzy nuggets and details that you won't find anywhere else, subscribe today.

 
 

FIRST IN HUDDLE: A NOD TO NARCAN — A bipartisan group of lawmakers is asking the FDA to approve over-the-counter access to Narcan in a letter dated Wednesday. The lawmakers, led by Rep. Angie Craig (D-Minn.), are asking FDA Commissioner Robert Califf to “expeditiously adopt” the recommendations of two FDA advisory committees to broaden access to the drug used to treat narcotic overdoses.

“The reality is that overdose deaths are preventable, but intervention must occur quickly. Putting Narcan directly into the hands of those impacted by substance use disorder will save countless lives,” the lawmakers wrote. Read the full letter.

THE TRUTH IS OUT THERE — “The X-Files” paired credulous Mulder with cool-headed Scully. “Star Trek” paired emotional Kirk with logical Spock. House Republicans have tapped their own odd couple: Jim Jordan and James Comer.

“Jordan (R-Ohio), who chairs the Judiciary Committee, and Comer (R-Ky.), the Oversight panel’s chief, play dual roles leading a parade of the GOP’s most politically touchy investigations — a dynamic that one GOP colleague praised as a ‘weird synergy’ but Democrats deride as a performance of bad cop-worse cop,” writes Jordain this morning.

16 HOURS — That’s how long the House Education and Workforce Committee’s markup of a bill that would bar transgender girls from girls sports teams at schools and the Parents’ Bill of Rights Act, which mirrors legislation under consideration in 26 GOP-led state legislatures. The meeting wrapped up at 2:21 a.m.

“The Biden administration is orchestrating a radical culture shift in America’s schools that is fundamentally changing what students are exposed to in the classroom and on the field," said House Education committee Chairwoman Virginia Foxx, R-Boone, North Carolina.

House Majority Leader Steve Scalise (R-La.) said Wednesday that the Parents’ Bill of Rights measure could hit the House floor as soon as March 20. The bill would require schools across the country to make public books, curriculum, budgets and teacher training materials for parents to review and give feedback on, or face elimination of federal funding. The measure seeks to limit class materials and books with race-related or sexual themes.

 

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MARKEY MAKES HISTORY — Or, his staff did. Staff in Sen. Ed Markey’s (D-Mass.) office formally requested that their boss voluntarily recognize their bargaining unit on Wednesday and Markey was on board, marking the first labor union made of Senate aides in a personal office.

“I applaud these passionate, dedicated workers who are exercising their right to organize through this fundamental, critical exercise in democracy,” Markey said in a written statement. “I am proud of my staff for embodying the commitment not to agonize, but to organize. I recognize their effort to unionize and look forward to engaging with them and the Congressional Workers Union.”

Markey’s staff will be able to collectively bargain but won’t have recourse with the Office of Congressional Workplace Rights or the National Labor Relations Board. That’s because the Senate never passed its own authorizing resolution like the House did, which leaves workers out of federal labor protections.

QUICK LINKS 

Schiff's bid to bolster his progressive credentials for Senate run hits some resistance, from Jennifer Haberkorn at The Los Angeles Times

Ruben Gallego made mental health part of his campaign. Specifically, his own, by Ben Terris at The Washington Post

Haley or Scott? South Carolina GOP braces for ‘24 primary with two hometown candidates, from Alex Roarty at McClatchy

TRANSITIONS 

Evan Turnage is now chief counsel for Senate Majority Leader Chuck Schumer, Josh Sisco reports. He previously was senior counsel with focus on competition policy for Sen. Elizabeth Warren (D-Mass.).

Quentin Dupouy is now legislative assistant for Rep. Jared Huffman (D-Calif.). He previously was digital director and legislative aide for Rep. Steve Cohen (D-Tenn.).

 

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.

 
 

TODAY IN CONGRESS

The House convenes at 10 a.m. for morning hour and noon for legislative business.

The Senate convenes at 10 a.m. for consideration of Daniel I. Werfel’s nomination to be the commissioner of the IRS through Nov. 12, 2027.

  • 11:30 a.m. votes to confirm Werfel’s nomination and that of James Edward Simmons Jr. to be a U.S. district judge for the Southern District of California.
  • 1:45 p.m. vote on confirming Maria Araujo Kahn’s nomination to be a U.S. circuit judge for the Second Circuit.

AROUND THE HILL

9 a.m. Reps. Zoe Lofgren (D-Calif.), Norma Torres (D-Calif.), Lou Correa (D-Calif.) and others announce the reintroduction of Renewing Immigration Provisions of the Immigration Act of 1929. (House Triangle)

10 a.m. House Judiciary Select Weaponization of the Federal Government Subcommittee hearing on the “Twitter Files.” (Rayburn 2141)

10 a.m. Senate Environment and Public Works Committee hearing on protecting public health and the environment in the wake of the Norfolk Southern train derailment and chemical release in East Palestine, Ohio. Sens. Sherrod Brown (D-Ohio), J.D. Vance (R-Ohio), Bob Casey (D-Pa.) and Norfolk Southern President and CEO Alan Shaw testify. (Dirksen 406)

10 a.m. House Minority Leader Hakeem Jeffries (D-N.Y.) holds his weekly press conference. (Studio A)

10 a.m. Reps. Gwen Moore (D-Moore), Judy Chu (D-Calif.), Dwight Evans (D-Pa.), and others hold a press conference on the reintroduction of the “Worker Relief and Credit Reform (WRCR) Act” and the Earned Income Tax Credit. (House Triangle)

11:30 a.m. Rep. Rashida Tlaib (D-Mich.) holds a press conference on the “Justice For All Act.” (House Triangle)

Noon House Intelligence Committee hearing on worldwide threats. Director of National Intelligence Avril Haines, CIA Director William Burns, NSA Director Paul Nakasone and FBI Director Christopher Wray testify. (Cannon 210)

12:30 p.m. Sen. Ed Markey (D-Mass.) and others hold a press conference on “Good Jobs for Good Airports.” (Senate Swamp)

TRIVIA

WEDNESDAY’S WINNER: James Sanchez correctly answered that Hawaii’s Class 1 seat, currently held by Sen. Mazie Hirono (D-Hawaii) and previously held by Sens. Daniel Akaka, Spark Matsunaga and Hiram Fong, has always been occupied by a person of color.

TODAY’S QUESTION: What was the topic of the last D.C. law that Congress struck down before the district’s criminal statute overhaul was rejected this week?

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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