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Details from the GOP's debt talks

Presented by Sallie Mae®: A play-by-play preview of the day’s congressional news
Apr 14, 2023 View in browser
 
POLITICO Huddle

By Katherine Tully-McManus and Sarah Ferris

Presented by Sallie Mae®

With an assist from Nicholas Wu, Jordain Carney, Olivia Beavers and Caitlin Emma

As the House GOP prepares to return from two weeks of recess, the pressure on Republicans has never been higher to deliver their opening bid in debt-limit talks with President Joe Biden and Senate Democrats. But make no mistake — the framework floating around right now is still nowhere near a final product.

Lists and leaks: While some details of Republican leaders' proposals have trickled out to members (and, of course, K Street), a list widely circulating lately is NOT the GOP’s official demands, according to a half dozen Republican sources close to leadership. Rather, it’s a collection of the most popular ideas that have emerged through two months of rank-and-file “listening sessions” with House Majority Whip Tom Emmer (R-Minn.) — 6 to 10 members at a time — and so-called “five families” talks with Rep. Garret Graves (R-La.).

Republicans involved in the talks insist it’s less about the specifics so far — and more about getting a unified GOP strategy against Democrats. “This is just an opening salvo,” according to one House Republican close to the discussions, adding that no one is whipping anything yet. We got a list of about 10 “likely” asks, but it's not even the only list flying around among House GOP-adjacent folks.

What comes next: With zero movement from the White House, Speaker Kevin McCarthy (R-Calif.) plans to soon make a formal opening bid to President Joe Biden. The precise details are still under discussion, but the goal is to coalesce around legislative text soon with a vote by the end of May. More important than the specifics, according to GOP sources, is that the party can demonstrate to Democrats that it’s serious about refusing a “clean” debt limit. (It also, we’ll note without comment, comes as McCarthy is all-but-guaranteed to get questions next week from reporters, and potentially his own members, about reported internal strife with his budget chief and No. 2.)

Racing the clock: McCarthy is expected to formally brief his colleagues when they gather next week, as the clock ties down to that elusive “X” date.” (The White House has been telling members that it expects an updated timeline about one week after tax day next Tuesday.)

The GOP framework that landed in our inboxes includes across-the-board spending cuts, the GOP’s energy bill, clawing back Covid money and more. Here’s what else is on the table — for now:

— A one year extension of the debt limit, punting the fight until summer of 2024. Some Republicans said they’re unsure this can get support across the conference, but we’re told there’s one big reason it was included: It would put Republicans on the record raising the debt limit by about $2 trillion — as opposed to the $4 trillion figure required to punt the whole shebang until after the 2024 election. (They could alternatively suspend it, letting them sidestep voting for a hard number, for one year.)

— If you’ve been following our reporting, some of the details won’t surprise you: Republicans plan to pitch work requirements and attach at least some parts of a sweeping energy bill that includes long-sought permitting reform to any debt proposal. The GOP is also floating a crackdown on regulatory power, the “REINS Act,” which we’ve been hearing about for awhile.

— Cutbacks to non-defense spending to FY22 levels, with a 1 percent uptick each year after that. But others in the GOP conference are agitating for caps on defense spending, too, creating another thorny issue. We’re told there are many options under discussion for the topline — but all would be some kind of cut.

— What’s missing: The House Freedom Caucus wants to claw back $80 billion for tax enforcement included in Democrats’ tax, climate and health bill last year. But a rescission of that money, along with other funding included in the Inflation Reduction Act, doesn’t appear to be included. Border policies, as pushed by Rep. Chip Roy (R-Texas) and others, are also not included.

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GOOD MORNING! Welcome to Huddle, the play-by-play guide to all things Capitol Hill, on this Friday, April 14, where it feels like recess actually ended a few days ago.

HERE COMES MITCH — Minority Leader Mitch McConnell (R-Ky.) will return to the Senate on Monday after a month spent recovering from a fall and concussion in early March. Jordain has more on McConnell’s return and how the tension between McConnell and Sen. Rick Scott (R-Fla.) has not abated during their time apart.

If anyone needs a check on how McConnell is really doing, your Huddle host can report that he’s played trivia regularly while he’s been recovering. And he’ll return to the Senate Monday with a recent victory under his belt.

FEINSTEIN FOLLOW-UP — Last night on CNN, Sen. Amy Klobuchar (D-Minn.) put a clock on Sen. Dianne Feinstein’s (D-Calif.) return to the Senate, walking the line between some Democrats calling for her prompt resignation and others, particularly women, defending her.

"I want to see what happens in the next month or so...If she can't come back month after month, with this close Senate, that's not only going to hurt California, it's going to become an issue for the country," Klobuchar said Thursday.

“We take her at her word that she’s coming back. Let’s see what that date is, what date she tells Sen. Schumer.”

Next steps: Democrats are hoping to temporarily replace Feinstein on the Senate Judiciary Committee, a move that they’d like to see done by unanimous consent, but otherwise would require 60 votes and help from at least 10 Republicans. Republicans may want a say on who that replacement would be, or may try to bargain for something else while Democrats are in a tough spot.

Other elements we’re watching:

  • Should Feinstein exit the Senate altogether, the Congressional Black Caucus would likely make a major push for Gov. Gavin Newsome’s pick to be Rep. Barbara Lee (D-Calif.), multiple people close to conversations told Nicholas. Lee, a former CBC chair, already has her hat in the ring for the seat. But the CBC is hardly the center of gravity within the huge California delegation. 
  • The California Democratic Party’s state convention is in less than a month and plenty of internal state politics are sure to be on display. Remember that progressives have a firm grip on the Golden State’s Dems and Feinstein didn’t even get the state party’s endorsement in 2018, so there could be further agitation about her role in the Senate. 

Related read: Newsom faces push to name Black woman to Senate if Feinstein retires, from Lara Korte and Rachel Bluth for POLITICO in Sacramento

 

GO INSIDE THE 2023 MILKEN INSTITUTE GLOBAL CONFERENCE: POLITICO is proud to partner with the Milken Institute to produce a special edition "Global Insider" newsletter featuring exclusive coverage, insider nuggets and unparalleled insights from the 2023 Global Conference, which will convene leaders in health, finance, politics, philanthropy and entertainment from April 30-May 3. This year’s theme, Advancing a Thriving World, will challenge and inspire attendees to lean into building an optimistic coalition capable of tackling the issues and inequities we collectively face. Don’t miss a thing — subscribe today for a front row seat.

 
 

CHOOSE YOUR OWN ENEMY — Rep. Marjorie Taylor Greene (R-Ga.) defended Massachusetts Air National Guardsman Jack Teixeira, 21, who was arrested Thursday in connection with the trove of leaked classified documents. Greene praised Teixeira’s alleged actions, that he posted classified documents in an online group chat that eventually made their way to the wider web, and called President Joe Biden "the real enemy."

“Jake Teixeira is white, male, christian, and antiwar. That makes him an enemy to the Biden regime. And he told the truth about troops being on the ground in Ukraine and a lot more,” Greene, a member of the Homeland Security Committee, said on Twitter. "Ask yourself who is the real enemy?” (Yes, she got his name wrong.)

Attorney General Merrick Garland indicated Thursday afternoon that Teixeira could face charges under the Espionage Act.

OPSEC TAKEN FOR GRANITE — Frame those photos up carefully, folks. The New York Times reports that they were able to I.D. Teixeira, in part by focusing in on the stone kitchen countertop visible in his childhood home in the pictures of intelligence documents he posted.

Related read: A 21-year-old with top secret access? It’s not as rare as you think, from Lara Seligman

BREAK IN — Both official equipment and personal property were missing after Republican Rep. Mike Collins’ office in Monroe, Ga. was broken into sometime overnight Wednesday, spokesperson D.J. Griffin said Thursday. It’s not immediately clear if Collins’ office was targeted or if it was robbed at random. Both Capitol Police and local law enforcement had been notified, Griffin said.

“I’m thankful this did not happen during hours — both for staff and perpetrator(s). #2Aoffice”, Collins tweeted later.

 

A message from Sallie Mae®:

Sallie Mae

 

QUICK LINKS 

An FSB meeting, Steven Seagal, and spies everywhere: The story of how Bill Keating investigated a Boston Marathon bomber in Russia, from Tal Kopan at The Boston Globe

What Rep. Shri Thanedar's up to in his first 100 days in Congress, from Samuel Robinson at Axios Detroit

TRANSITIONS 

Jeff Sanchez is now chief of staff for federal at PhRMA. He previously was a senior adviser for Sen. Chris Coons (D-Del.).

Rishi Sahgal is now a professional staff member on the Senate Appropriations Committee. He most recently was with Chair Patty Murray’s (D-Wash.) personal office.

Heather Wadyka is now a professional staff member on the House Education and Workforce Committee. She previously was a policy adviser for Brownstein Hyatt Farber Schreck.

 

The McCain Institute will convene its 10th annual Sedona Forum on May 5-6, featuring lawmakers, journalists, military leaders, business executives, and more. This year’s theme, “Indispensable Power,” will examine the diplomatic, military, and economic means employed to protect democracy, human rights, and the global competitive edge. Established by Senator John McCain, the Sedona Forum is held each spring in the red rock country of Sedona, Arizona, to advance the mission of the McCain Institute – fighting for democracy, human dignity, and security. Visit TheSedonaForum.org to register for the livestream today.

 
 

TODAY IN CONGRESS

The House and Senate are out.

AROUND THE HILL

Recess Friday, take your meetings on a bench outside.

TRIVIA

THURSDAY’S WINNER: Senate Minority Leader Mitch McConnell correctly answered that then-Sen. Joe Biden (D-Del.) was Judiciary chairman when Sen. Dianne Feinstein (D-Calif.) first joined the panel.

TODAY’S QUESTION from Sen. McConnell: Prior to his Senate service, which former senator served as a captain on the 1964 U.S. Olympic team and for which sport?

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

A message from Sallie Mae®:

As a responsible private lender, Sallie Mae believes higher education should be more affordable and accessible, and students and families should understand the total cost of higher education before attending. A more transparent, standard financial aid offer letter will help students and families make more informed decisions about what school to attend and how to pay for it, and can ultimately help prevent overborrowing. Learn more about how Sallie Mae helps students and families responsibly plan and pay for higher education.

 
 

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