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Biden's growing junk fee movement

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Apr 24, 2024 View in browser
 
West Wing Playbook

By Eli Stokols, Lauren Egan and Ben Johansen

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Like every West Wing stakeholder, JOE BIDEN’s White House Competition Council was trying to get a line into last year’s State of the Union address about one of its main priorities — the campaign against so-called “junk fees” — when it got an unexpected boost.

Polling came in, all but making the case for them.

“Junk fees, out of 180 things they polled, was in the top three most popular actions,” former deputy National Economic Council director BHARAT RAMAMURTI recounted this week. “And that one sentence we wanted in the State of the Union ended up being four paragraphs.”

Few issues have more currency inside the White House than junk fees. With cost of living still front and center for voters, the administration’s focus on the matter has grown on multiple fronts. And as they’ve announced new efforts to rein in the hidden fees charged by banks, airlines, hotels and countless other economic sectors, the war against junk fees has grown into a national movement. White House officials are now working with lawmakers in several states, supporting local efforts to tackle those hidden costs.

On Wednesday, the Department of Transportation announced final rules requiring airlines to promptly deliver refunds for flight cancellations and disclose baggage, change and cancellation fees upfront. That move follows actions by the Federal Trade Commission and Consumer Financial Protection Bureau to increase transparency on pricing and to eliminate some junk fees.

“In all, these and other actions by the Biden-Harris Administration will save Americans more than $20 billion every year in junk fees,” NEC director LAEL BRAINARD said Wednesday afternoon during a Zoom with state lawmakers. “Complementary state-level actions are an essential part of our mission to lower costs for Americans.”

Lawmakers eager to show they are trying to address the issue of rising costs are listening.

Officials in Illinois introduced their own junk fees bill last month, aiming to crack down on hidden fees and empowering the state’s attorney general to go after businesses that ignore the new restrictions. “We can’t do much about global inflation at the state level, but what we can do is deal with things like this,” said Democratic state Rep. BOB MORGAN, one of the bill’s sponsors.

Morgan was in Washington on Monday meeting with White House and FTC officials for an exchange of ideas. “This is a very real example of how legislators across the country at the state level can tackle cost of living issues in a real way,” said TIM LONGEST, a Democratic state representative from Raleigh, North Carolina, who also attended.

Many of the state officials credited Biden for elevating the issue. ELEANOR BLUME, special assistant attorney general at the California Department of Justice, recounted how the state’s attorney general ROB BONTA attended Biden’s 2023 State of the Union and was inspired to take action on junk fees. California’s ban on junk fees, signed last fall but not taking effect until July, could offer useful data for other lawmakers.

“The states really learn from each other,” Blume said. “If it works for 11 percent of the population, there’s a good chance it will work in other states.”

Polling on the issue, as it did two years ago for Biden’s team, explains why so many lawmakers see the upside in attaching themselves to the war on junk fees. A new survey by Blueprint examined the popularity of 40 issues that could affect the 2024 campaign. Banning businesses from charging consumers hidden fees ranked first in popularity, with 76 percent net support. Another survey by CELINDA LAKE for the American Economic Liberties Project found that 83 percent of respondents would be more likely to support candidates who back eradicating junk fees — and that the issue “could serve as a turnout mechanism for local elections.”

The main problem may simply be that voters don’t always know about what’s being done. A Navigator Research focus group from last December showed just 3 out of 20 participants were aware of Biden’s record on junk fees.

The other problem is more acute: Business interests continue to fight to preserve junk fees. Republicans in Congress have challenged the administration’s efforts and introduced legislation aimed at protecting the ability of companies to charge and hide additional fees. MICHAEL NEGRON, a special assistant to the president for economic policy, said he hoped that the cascading state action would make it harder for that litigation to succeed.

“This topic has become so clarifying. It’s hard to justify [opposing this] and the people who want to justify it have to contort themselves to do it,” said Negron. “So it has become a helpful way to clarify whose side you’re on: Are you fighting for working families or are you fighting for corporate interests?”

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POTUS PUZZLER

Which president went on a Smithsonian-sponsored safari?

(Answer at bottom.)

The Oval

POTUS GETS HIS WATERSHED MOMENT: President Biden signed a $95.3 billion military aid package for Ukraine, Israel and Taiwan on Wednesday, providing critical support for Kyiv at a pivotal moment in their war with Russia. Speaking at a press conference, Biden argued the bill should have been done sooner and warned what could have happened if no deal had been reached, our MYAH WARD reports. Biden said the U.S. will be sending the first shipment of military equipment to Ukraine in “a few hours.”

AND BY “A FEW HOURS”… Maybe he meant a few weeks? And instead of the future tense, maybe he meant past? Turns out, the United States secretly sent Ukraine long-range missiles last month, which Ukrainian forces have already used twice to strike deep behind Russian lines, our ALEXANDER WARD and LARA SELIGMAN report. A senior administration official said Ukraine first used the missiles against a Russian military base in Crimea and more recently against Russian forces east of Berdyansk.

Sullivan confirmed at Wednesday’s press briefing that the U.S. sent the long-range missiles in March, and that the administration will continue to “send more.”

AS FOR HOW THAT WATER WAS SHED: Our BURGESS EVERETT and JENNIFER HABERKORN report that the Biden administration deployed a two-pronged approach when bargaining with House Republicans: privately make clear to Speaker MIKE JOHNSON the ripple effect VLADIMIR PUTIN taking Ukraine would have on Europe and the rest of the world — and lay off attacking the speaker in public.

Counselor to the president STEVE RICCHETTI spoke to Johnson regularly and served as Biden’s conduit to House Minority Leader HAKEEM JEFFRIES. For months, chief of staff JEFF ZIENTS began his day meeting with Ricchetti, Director of Legislative Affairs SHUWANZA GOFF, National Security Adviser JAKE SULLIVAN and others to discuss how to present the case about the dire situation in Ukraine. Aides worked with Johnson to sweeten the deal for Republicans, adding in a key component that sells off Russian oligarch assets, restructures some of the foreign aid as a loan and cracks down on TikTok.

A SOMBER MEETING: President Biden met with ABIGAIL IDAN today, the 4-year-old American who was held hostage by Hamas and released in November, Sullivan announced at today’s briefing.

WHAT THE WHITE HOUSE WANTS YOU TO READ: This piece by CNN’s ANNIE GRAYER and MELANIE ZANONA, who report that House Oversight Committee Chairman JAMES COMER is ready to be “done with” the impeachment inquiry into Biden. Fifteen months of investigation... and Comer still came up with nothing, much to his increasing frustration. “Comer is hoping Jesus comes so he can get out,” one GOP lawmaker said. “He is fed up.”

White House spokesperson IAN SAMS reposted the story on X.

WHAT THE WHITE HOUSE DOESN’T WANT YOU TO READ: This piece by CNN’s DANIEL DALE, who says that Biden, in fact, has never driven an 18-wheeler — despite what the president claimed at a Florida campaign event on Tuesday. Biden also made this claim twice back in 2021: once during a tour of a Mack Trucks facility (“I used to drive an 18-wheeler, man”) and once to college students studying truck technology (“I used to drive a tractor-trailer...I only did it for part of a summer, but I got my license anyway”).

WHAT THE WHITE HOUSE DOESN’T WANT YOU TO WATCH: Biden had what could be described as a RON BURGUNDY moment today while at the North America’s Building Trades Unions conference, where he received an endorsement and — but for an over-commitment to the teleprompter — delivered a rousing address.

YOU GET A COMMENCEMENT SPEECH! AND YOU GET A COMMENCEMENT SPEECH! Vice President KAMALA HARRIS will deliver a commencement speech on May 30 for graduates of the Air Force Academy, the Colorado Springs Gazette’s MARY SHINN reports.

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CAMPAIGN HQ

UNION JOE STRIKES AGAIN: As noted, Biden gave a politically-charged speech to members of North America's Building Trades Unions on Wednesday, taking several jabs at DONALD TRUMP’s economic record. He also poked fun at the former president’s locks, our LAWRENCE UKENYE writes in. “By the way, remember when he was trying to deal with Covid, he suggested [to] inject a little bleach into your veins — he missed, it all went to his hair,” Biden said.

The attacks on the former president came the same day as NABTU announced it would endorse Biden, giving him another key labor ally as he aims to cast himself as the most union-friendly president in decades.

HE’S NOT SWEATING IT: President Biden condemned the anti-Israel protests taking over college campuses this week, sparking backlash from pro-Palestine individuals and raising questions over his standing with young people. But our EUGENE DANIELS and ELENA SCHNEIDER report that the Biden campaign remains unphased. Campaign aides believe the groups protesting are a “subset of a subset of the electorate,” our colleagues write.

Notably, the Israel-Palestine conflict is among the lower-ranking priorities for younger voters, according to recent polling, despite the media coverage protests over it engender.

THE BUREAUCRATS

FORGET THAT PARTY INVITE, BUT PLEASE BUY OUR BOOK: Crooked Media invited a number of administration officials to its White House Correspondents' Dinner gathering in Washington. But some of them who have tried to RSVP this week were a combination of miffed and amused to receive auto replies informing them that the event is already “at capacity.” Those officials especially appreciated that the rejection emails also included a reminder of other ways to “get your fill” of the Pod Save team by listening to their podcast and pre-ordering “Jon, Jon and Tommy’s new book!” They may have left Washington but they haven’t left Washington.

IT IS THE NIGHT TO CELEBRATE THE FIRST AMENDMENT AFTER ALL: NBC’s ALEX SEITZ-WALD and MONICA ALBA report that pro-Palestinian protesters are trying to disrupt the WHCD festivities this weekend over objection to Biden’s support for Israel. Activists expect several hundred people at a rally in Kalorama Park, just a few blocks north of the Washington Hilton, where the dinner is being held.

 

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Agenda Setting

LOL, FRONTIER AIRLINES. SORRY! We noted above that the Biden administration finalized a rule Wednesday making it easier for flyers whose planes were canceled or “significantly” delayed to get a cash refund. Our ORIANA PAWLYK reports that under the new rule, airlines will have to issue a refund more quickly and will not be allowed to issue a voucher for a future flight.

In a second rule also issued today, the Transportation Department forced airlines and third-party ticket bookers to disclose add-on fees. Passengers will also be able to receive a refund if Wi-Fi or in-flight entertainment that was paid for wasn’t available once they boarded. Hey, PETE BUTTIGIEG, what if you buy those crappy earbuds and you can’t hear shit? Refund? Oh. And if you wanted the pretzels but they only had those weird oval shaped cookies? Refund?

WEIGHING AN EMERGENCY: White House officials have renewed discussions about declaring a national climate emergency, an unprecedented move that would restrain oil development and appease a key demand of climate activists, Bloomberg’s JENNIFER A. DLOUHY and JENNIFER JACOBS report. Top Biden advisers are split on the decision.

While it might not give Biden enough authority to make substantial change, it could help galvanize help climate-minded voters this November.

What We're Reading

Biden signed a bill to force a sale of TikTok or ban it. What’s next? (POLITICO’s Rebecca Kern)

High Borrowing Costs Have Some Democrats Urging Biden to Pressure the Fed (NYT’s Jim Tankersley and Jeanna Smialek)

How Donald Trump Gets His News (POLITICO’s Meridith McGraw)

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POTUS PUZZLER ANSWER

Who else???

In 1909, months after he wrapped up his second term, President TEDDY ROOSEVELT went on his own two-year safari through eastern Africa. And according to Vox, the former president’s kill list was… gnarly. Teddy noted in his 1910 book that he and his son KERMIT (you’d think he would have a soft spot for critters) killed over 500 animals, including 17 lions, 29 zebras, eight hippos and a pelican, to name just a few.

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

Edited by Sam Stein and Rishika Dugyala.

 

POLITICO IS BACK AT THE 2024 MILKEN INSTITUTE GLOBAL CONFERENCE: POLITICO will again be your eyes and ears at the 27th Annual Milken Institute Global Conference in Los Angeles from May 5-8 with exclusive, daily, reporting in our Global Playbook newsletter. Suzanne Lynch will be on the ground covering the biggest moments, behind-the-scenes buzz and on-stage insights from global leaders in health, finance, tech, philanthropy and beyond. Get a front-row seat to where the most interesting minds and top global leaders confront the world’s most pressing and complex challenges — subscribe today.

 
 
 

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