The Hill’s Morning Report — Lawmakers inch forward on spending deal

by Kristina Karisch - 12/13/22 6:20 AM ET

Editor’s note: The Hill’s Morning Report is our daily newsletter that dives deep into Washington’s agenda. To subscribe, click here or fill out the box below.

The race to fund the government ahead of a Friday deadline continues, and lawmakers on Monday still appeared to have a long way to go before passing an omnibus spending package before Christmas.

Senate Majority Leader Charles Schumer (D-N.Y) said from the chamber floor on Monday that Congress is headed for a short-term spending bill, known as a continuing resolution (CR), in the coming days, which would give negotiators an extra week to try to hash out a bigger compromise on billions in spending, writes The Hill’s Aris Folley.

“Members should be prepared to take quick action on a CR, a one-week CR, so we can give appropriators more time to finish a full funding bill before the holidays,” Schumer said on Monday afternoon.

Sen. John Boozman (R-Ark.), an appropriator, said last week that one of the biggest holdups preventing an agreement between Republicans and Democrats is a roughly $25 billion gap between what the parties want allocated for discretionary spending. The clashes come as Democrats fight to seize what could be their last opportunity to shape government funding before they lose control of the House in January.

While Democrats are unified in pushing for an omnibus bill by the end of the month, Republicans remain divided. Last week, Sen. Ted Cruz (R-Texas) said Congress should pass a stopgap spending bill that runs “until early next year” so the newly elected Congress can “enact the priorities that the voters elected them to enact.” But even Republicans who have expressed support for an omnibus are pushing hard for Democrats to lower their demands for domestic spending.

“Both sides know what it would take for the Senate to pass a full-year government funding bill into law,” Senate Minority Leader Mitch McConnell (R-Ky.) said on the Senate floor on Monday.

▪ Roll Call: Signs of life for the omnibus deal as negotiators make headway.

▪ Vox: Why Congress’s failure to pass permitting reform could come back to haunt Democrats — and the climate.

A narrow House GOP majority in divided government could be an opportunity for moderate and pragmatic House Republicans to prove the value of their style and philosophy of trying to work in earnest across party lines on legislative priorities, writes The Hill’s Emily Brooks. The kinds of Republicans who won in tough districts are the party’s “majority makers,” some say, and have the potential to band together to direct priorities and actions.

But ideological polarization and the confrontational tactics of the House GOP’s right wing, as well as House Minority Leader Kevin McCarthy (R-Calif.), who is walking a careful line in hopes of keeping its support, could complicate moderate hopes of acting on any middle ground.

McCarthy is being dragged into the firestorm set off by Rep. Marjorie Taylor Greene’s (R-Ga.) comments that the Jan. 6, 2021, Capitol riot would have been armed if she had organized it, writes The Hill’s Mychael Schnell, with Democrats tying the remarks to McCarthy’s Speaker bid as the firebrand Republican emerges as one of his fiercest advocates.

“I simply think that Kevin McCarthy and the Republican conference need to decide which side of the insurrection they’re on,” Rep. Jamie Raskin (D-Md.), a member of the House Jan. 6 select committee, told The Hill. “The side of the officers and the Constitution or the side of Marjorie Taylor Greene and Donald Trump?”

The select committee is set to release its final report on Dec. 21 and is set to begin with a lengthy executive summary describing former President Trump’s “culpability for his extensive and baseless effort to subvert the 2020 election,” Politico reports. The complete report is expected to include findings from all of the select committee’s investigative teams, which probed the mob, Trump’s actions, the role of extremism in the attack, the money trail behind Trump’s Jan. 6 rally and law enforcement failures on the day of the attack.

The Washington Post: Special counsel Jack Smith sends Trump subpoena to Georgia Secretary of State Brad Raffensperger.

Related Articles

▪ Politico: Why one rising GOP senator is tapping out for a governor’s race instead.

▪ Axios: Democrats aim to steal GOP playbook on patriotism and freedom.

▪ The 19th: Why the 2022 election was historic for Muslim women’s representation.

▪ USA Today: More than just “firsts,” LGBTQ elected officials carve space for a future generation of politicians.

▪ The Hill: House Oversight Committee to hold hearing on surging anti-LGBTQ violence.

LEADING THE DAY

➤ POLITICS

The rising animosity between pro-Trump and anti-Trump or establishment forces is creating the prospect of something no Republican wants: a GOP civil war that could split the party in two and leave the path clear for Democrats to win big in 2024. The Hill’s Al Weaver writes that former Speaker Newt Gingrich (R-Ga.) raised that possibility last week, but some Republicans are not yet ready to hit the panic button and don’t believe that is what will ultimately happen, even as Trump and other possible 2024 candidates stake out ground.

“You’ve got tensions in the Democratic Party. You’ve got tensions here, but no,” said Sen. Lindsey Graham (R-S.C.) “Dysfunctional political parties is the norm. It’s not the exception on both sides.”

The list of alternatives to Trump on the GOP ticket in 2024 is growing as Republicans express their excitement about the possibility of Sen. Tim Scott (R-S.C.) throwing his hat in the ring. Scott, who handily won reelection in the midterms, has not publicly stated his intentions to run.

But Scott would “bring something to the table on day one,” according to Graham, who said his South Carolina colleague has “one of the most compelling stories of any Republican out there” (Politico).

▪ The Washington Post: Kari Lake was unflinchingly loyal to Trump. Then her campaign unraveled.

▪ Politico: Inside the secret $32 million effort to stop “Stop the Steal.”

▪ The Washington Post: How a Trump-allied group fighting “anti-white bigotry” beats Biden in court.

The Hill’s Julia Manchester outlines five challenges facing Republicans as they try to take back the Senate in 2024: GOP skepticism on mail-in voting, Trump, securing the support of young voters and Black voters, as well as abortion rights.

Senate Democrats are still digesting the bombshell news that Sen. Kyrsten Sinema (I-Ariz.) is leaving their party, The Hill’s Alexander Bolton reports. Lawmakers are still trying to understand the impact on day-to-day business and more importantly, the 2024 Senate map. Sinema has voted reliably for President Biden’s nominees and she believes becoming an Independent frees her up to work on more bipartisan deals, but little legislating is expected with a GOP-controlled House, and it’s not clear what Sinema will focus on. Some Democratic senators felt frustrated and baffled by Sinema’s moves during the 117th Congress and don’t think the affiliation as Independent changes much, but Schumer has a tough call to make on backing her reelection.

▪ The Hill: Sen. Joe Manchin (D-W.Va.) says he has no intention of leaving the Democratic Party.

▪ Politico: Minority Leader-elect Hakeem Jeffries (D-N.Y.) faces decision as House Dems’ next campaign chair still a mystery.

➤ ADMINISTRATION

The White House has privately signaled to Democrats that it would support a compromise deal to revive the expanded child tax credit, Politico reports. It’s a significant shift for an administration that has resisted applying work requirements to anti-poverty programs.

The move comes amid efforts in Congress to include an expansion to the credit in the year-end spending package while Democrats still control both chambers. It also reflects a growing urgency within the administration to salvage a policy that’s among Biden’s signature achievements. The enhancement of the child tax credit was rolled out during his first months in office, delivering up to $3,600 to parents. According to Census Bureau data, the increase resulted in a historic drop in child poverty, cutting the national rate nearly in half.

But the benefits ran out last December in the face of opposition from Republicans and Manchin, who said he would not support an extension over concerns that the policy was fueling inflation.

Then-Vice President Biden stood at a podium in the South Court Auditorium of the White House nearly a decade ago and spoke about the need for action after a gunman killed 20 children and six teachers at Sandy Hook Elementary School in Newtown, Conn., write The Hill’s Alex Gangitano and Brett Samuels.

“We are starting here today and we’re going to resolve to continue this fight,” Biden, who has been at the center of debates over gun laws for the last 30 years, said at the time after leading a task force to form proposals in the wake of the shooting. Wednesday will mark 10 years since the Sandy Hook massacre, but the president is still preaching much the same message.

Perhaps more than any other issue, Biden has used his pulpit as president to push Congress to address gun violence, calling repeatedly for lawmakers to reimpose a ban on assault weapons.

▪ The New York Times: Biden is bringing Africa’s leaders to Washington, hoping to impress. China, Russia, Turkey and the United Arab Emirates are all vying for influence in Africa. What will the administration offer at a summit that starts Tuesday in Washington?

▪ The Hill: Paul Whelan’s family meets with Biden officials amid fresh calls for his release from Russia.

▪ The Hill: Bidens participate in the 75th annual Toys for Tots event in Virginia.

IN FOCUS/SHARP TAKES

➤ INTERNATIONAL

The European Union is being rocked by allegations that World Cup host Qatar bribed current and former officials in the European Parliament in the hopes of influencing decisions at the highest levels. Since Friday morning, Belgian authorities have confiscated more than $1 million in cash, frozen the tech assets of 10 parliamentary officials and held six people for questioning over the course of 20 raids across Brussels. Four of them on Sunday were charged by a Belgian judge, who said they are “suspected of money laundering, corruption and taking part in a criminal organization on behalf of a ‘Gulf State,’” according to The Washington Post.

While EU authorities have yet to confirm the implicated country, Belgian media identified it as Qatar. According to media reports, those charged include Eva Kaili, a European Parliament vice president; and her partner, parliamentary assistant Francesco Giorgi; and Pier Antonio Panzeri, a former member of the European Parliament. On Monday, Kaili was stripped of her role (Reuters).

“This is about the credibility of Europe, so this has to trigger consequences in various areas,” said German Foreign Minister Annalena Baerbock (The Guardian).

The Group of Seven promised to “meet Ukraine’s urgent requirements” for defense aid after Ukrainian President Volodymyr Zelensky appealed to the group for modern tanks, artillery firepower and long-range weapons against Russia’s devastating invasion. EU foreign ministers also agreed to put another $2.1 billion into a fund to pay for military support for Ukraine, after it was largely depleted during almost 10 months of war (Reuters). The U.S. on Tuesday sent its first shipment of power gear to Ukraine as the country continues experiencing attacks on its grid heading into the coldest parts of winter (Reuters).

Russia is using old Ukrainian missiles against Ukraine, intelligence officials have discovered. The missiles, which were returned to Russia in the 1990s under an agreement aimed at assuring Ukraine’s territorial integrity and sovereignty, have now shown up in rubble (The New York Times).

▪ The Hill: Russian President Vladimir Putin skips annual news conference as his war in Ukraine falters.

▪ The New York Times: In a wary Arctic, Norway starts to see Russian spies everywhere.

Iran on Monday hanged a man in public who had been convicted of killing two members of the security forces, according to state media. It marked the second execution in less than a week of people involved in anti-regime protests. Nationwide demonstrations erupted three months ago after 22-year-old Mahsa Amini died in custody after being arrested by the morality police enforcing mandatory dress code laws (The Hill).

Vox: Why the protests in Iran are so hard to understand.

As China drops some of its harsh “zero COVID” restrictions, the government is on a mission to get older adults vaccinated against COVID-19. This messaging is critical as the government braces for a surge in cases that could overwhelm its medical resources. The outbreaks in the coming weeks and months — and how deadly they will be — depend in part on whether older adults are willing to be inoculated (The New York Times).

Bloomberg News: China postpones key economic policy meeting due to COVID-19 spike.

OPINION

■ Elon Musk is ruining Trump’s presidential campaign, by Joshua Green, national correspondent, Bloomberg Opinion. https://bloom.bg/3BpkQkL

■ The end of the new peace, by Yuval Noah Harari, contributor, The Atlantic. https://bit.ly/3iLVVS4

WHERE AND WHEN

👉 The Hill: Share a news query tied to an expert journalist’s insights: The Hill launched something new and (we hope) engaging via text with Editor-in-Chief Bob Cusack. Learn more and sign up HERE.

⭐ INVITATION: Join a newsmaker event hosted by The Hill and the Bipartisan Policy Center on Tuesday, Dec. 13, 10 a.m. ET (hybrid), “Risk to Resilience: Cyber & Climate Solutions to Bolster America’s Power Grid,” with Rep. Jim Himes (D-Conn.), Rep. Cathy McMorris Rodgers (R-Wash.), Energy Department Cybersecurity, Energy Security and Emergency Response Director Puesh Kumar and more. Information for in-person and online participation is HERE.

The House will convene at 10 a.m.

The Senate will convene at 10 a.m. and resume consideration of the nomination of Dana M. Douglas to be a U.S. circuit judge for the 5th Circuit.

The president will receive the President’s Daily Brief at 9 a.m. At 3:30 p.m., he will sign the Respect for Marriage Act into law on the South Lawn, with Vice President Harris, first lady Jill Biden and second gentleman Doug Emhoff in attendance.

The vice president will speak at the U.S.-Africa Leaders Summit’s African and Diaspora Young Leaders Forum at 1:20 p.m., and at 3:30 p.m. will attend the signing ceremony for the Respect for Marriage Act.

The first lady will attend the signing ceremony for the Respect for Marriage Act.

Secretary of State Antony Blinken will participate in the U.S.-Africa Leaders Summit in Washington.

The White House daily press briefing is scheduled at 2:15 p.m.

ELSEWHERE

➤ TECH

The disgraced founder of the collapsed cryptocurrency exchange FTX, Sam Bankman-Fried, was arrested in the Bahamas on Monday after U.S. prosecutors filed criminal charges, according to the government of the Bahamas, which added that the U.S. is likely to request his extradition.

Bankman-Fried has been under investigation by the Justice Department over the sudden implosion of FTX, a $32 billion company that filed for bankruptcy on Nov. 11 (The New York Times). Earlier Monday, leaders of the Senate Banking Committee, before which Bankman-Fried was set to testify, said the CEO and his lawyers had refused to accept a subpoena to appear before the committee.

In a Monday statement, Senate Banking Committee Chairman Sherrod Brown (D-Ohio) and ranking Republican Sen. Pat Toomey (Pa.) blasted Bankman-Fried for “an unprecedented abdication of accountability” after rejecting several requests to testify at hearings about the collapse of FTX.

“Virtually every CEO, financial regulator, and administration official for Republicans and Democrats has agreed to testify in front of both the Senate and House when called upon – that is how congressional oversight works,” Brown and Toomey said (The Hill).

Big questions remain after FTX’s collapse. The Hill’s Sylvan Lane tackles five of the biggest, including when Bankman-Fried will face charges and what he knew before the collapse. He also asks where the Securities and Exchange Commission was in all this, if the collapse could have been prevented — and if the debacle will lead to changes in cryptocurrency rules.

Kristin Smith, executive director of the Blockchain Association, one of the largest crypto lobbying groups, knows it won’t be easy to rebuild the industry’s reputation, writes The Hill’s Karl Evers-Hillstrom. The high-profile FTX failure — which follows several other crypto collapses this year — casts a shadow over an industry that had been making inroads with lawmakers and will only spur more scrutiny from crypto’s most vocal skeptics.

“I’m outraged too,” Smith told The Hill. “This is just a pattern of really egregious behavior and if you look at some of the reporting that’s been out there, there’s a very good case that this could be fraud.”

▪ The Wall Street Journal: Bankman-Fried’s parents were there for FTX’s rise, and now its fall.

▪ Vox: How effective altruism let Bankman-Fried happen. Profound philosophical errors enabled the FTX collapse.

The Federal Reserve is hoping to slow its interest rate hikes and give Americans some relief from rising mortgage and car payments, writes The Hill’s Sylvan Lane, but a crucial inflation report could make or break those plans. The Labor Department is set to release new inflation data for November today, a day before the Fed is expected to hike rates for the final time this year.

While Fed leaders say they are planning to slow down rate hikes to limit the risk of a recession, a surprise price surge could force the bank to abandon those plans.

▪ Bloomberg News: What to expect in the last Consumer Price Inflation report of the year, and what’s ahead.

▪ Quartz: Elon Musk’s Twitter won’t take any more advice from its Trust and Safety Council.

➤ PANDEMIC & HEALTH

A crackdown by drug wholesalers in response to the opioid crisis is preventing some pharmacists from dispensing a combination of stimulants and sedatives routinely prescribed to help patients manage conditions like anxiety and attention deficit hyperactivity disorder (ADHD).

As part of a $21 billion nationwide opioid settlement with attorneys general from 46 states, the District of Columbia and five territories, the three main U.S. pharmaceutical wholesalers tightened monitoring of suspicious orders from pharmacies in July. Five independent pharmacists in five different states told Reuters they were notified that they would be cut off from the distribution of all controlled substances after filling prescriptions for psychiatric drugs such as the stimulant Adderall — used to treat ADHD — and anti-anxiety drug Xanax.

“This is detrimental potentially to many patients who have comorbid anxieties along with ADHD, or sleep issues along with ADHD,” Matthew Goldenberg, president-elect of the Southern California Psychiatric Society, a chapter of the American Psychiatric Association, told Reuters. “I think it’s a trickle-down effect from the opiates.”

▪ The Washington Post: Cause of death: Washington faltered as fentanyl gripped America.

▪ NPR: How Medicare Advantage plans dodged auditors and overcharged taxpayers by millions.

▪ Reuters: It’s too soon to call an end to the COVID-19 emergency, GAVI chief says.

Concerns are growing nationwide for rapidly increasing cases of what health officials have deemed a tripledemic: the flu, respiratory syncytial virus and COVID-19, and the Centers for Disease Control and Prevention (CDC) is once again urging the public to wear face masks indoors (The Hill).

Information about COVID-19 vaccine and booster shot availability can be found at Vaccines.gov.

Total U.S. coronavirus deaths reported as of this morning, according to Johns Hopkins University (trackers all vary slightly): 1,084,651. Current U.S. COVID-19 deaths are 2,981 for the week, according to the Centers for Disease Control and Prevention. (The CDC shifted its tally of available data from daily to weekly, now reported on Fridays.)

THE CLOSER

And finally … ⚽ It’s the World Cup semifinals in Doha, Qatar. Argentina faces off against Croatia today, and tomorrow France will play against Morocco.

Both games will follow a similar template, pitting a team that arrived as an established contender against one of the tournament’s outsiders. As for what happens next? Given the upsets that have underscored the World Cup so far, it’s anyone’s guess.

As French coach Didier Deschamps told The New York Times, “Any of the four teams can win it.”

Argentinian fans’ enthusiasm is driven by the belief that winning this World Cup is star player Lionel Messi’s destiny, resulting in a spectrum of emotion, “ranging from the caterwauling after an opening defeat to Saudi Arabia to the belligerence of a narrow victory over the Netherlands, taking in relief, hope, euphoria and pride along the way.”

France, meanwhile, is seeking to become the first team since Brazil in 1962 to mount a successful defense of its World Cup title. Their hopes are bolstered by forward Kylian Mbappé — the World Cup’s leading scorer, and arguably one of the most gifted players in the game — as well as “an enviable array of attacking threats, a well-balanced midfield and a redoubtable defense.”

Stay Engaged

We want to hear from you! Email: Alexis Simendinger and Kristina Karisch. Follow us on Twitter (@asimendinger and @kristinakarisch) and suggest this newsletter to friends!