The Hill’s Morning Report — No debt breakthrough; Trump liable for sexual abuse

by Alexis Simendinger and Kristina Karisch - 05/10/23 6:20 AM ET

Speaker of the House Kevin McCarthy of Calif., left, listens as President Joe Biden speaks before a meeting on the debt limit in the Oval Office of the White House, Tuesday, May 9, 2023, in Washington. (AP Photo/Evan Vucci)

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President Biden and Speaker Kevin McCarthy (R-Calif.) did not resolve the debt ceiling crisis in an hour on Tuesday at the White House.

The monthslong stalemate continues, as anticipated, which unnerves many in Washington and on Wall Street, but McCarthy and Senate Minority Leader Mitch McConnell (R-Ky.) offered hints about what comes next.

Republicans believe they have painted Biden into a corner for refusing to begin discussions until this week when the default date could be as soon as June 1, as gauged by the Treasury Department. The president last met with McCarthy at the White House on Feb. 1 after repeated requests by the Speaker.

The GOP leaders said they are clear-eyed about the potential economic pain and political damage from failing to make U.S. payments that are now due, or even the concerns globally that the full faith and credit of the United States may be a mirage.

“The United States of America is not going to default,” McConnell told reporters after the meeting with the president, Senate Majority Leader Chuck Schumer (D-N.Y.) and House Minority Leader Hakeem Jeffries (D-N.Y.).

“We need to take the threat of default off the table,” Biden stressed to reporters after the discussion with lawmakers. He described the discussion as productive and said he and congressional leaders would meet again Friday. “Everyone in the meeting understood the risk of default,” he said.

McCarthy offered the assurance another way, reiterating that House Republicans passed a plan to raise the debt ceiling through March if they can get Biden and Democrats to curb federal spending over the next decade. The Speaker left the door ajar to a possible compromise with Biden and Senate Democrats, using the word “some” to describe the extent of “restraint on our spending” his party seeks, paired with any increase in borrowing authority.

McCarthy repeated a list of proposed spending cuts, reforms and reprogrammed funds his conference adopted in a recently passed bill, but publicly, at least, the Speaker’s stance is that Biden will be unable to cling to his stance — “no” adjustments to spending unless Republicans give the Treasury new authority to borrow above the $31 trillion that’s been deployed to pay past commitments.

The next step, McCarthy added, will be staff-to-staff brainstorming about possible options, followed by a Friday meeting among leaders and the president.

Tuesday’s discussion apparently did not delve into potential escape hatches, such as the suggestion from some Democrats that Biden raise the borrowing limit by leaning on the 14^th Amendment to circumnavigate the legislative branch.

The president said Tuesday that he’s studying that idea and was advised by constitutional scholar Laurence Tribe that it would be “legitimate,” but he acknowledged such a unilateral action would not be a viable short-term solution as the nation barrels toward a catastrophic default (The Hill).

Asked if House Republicans would consider a short-term debt ceiling increase to allow more time for negotiations, McCarthy did not rule it out, but told reporters, “I don’t think a short-term extension does anything.” Some veterans of past debt-ceiling cliffhangers suggest that possibility — if an interim debt ceiling hike could be coupled with evidence that Biden and Senate Democrats have agreed in concept to hammering out a level of budget savings both parties could support, spread over a 10-year budget.

“Everyone knows how dire this is,” McCarthy said, adding, “I’m not holding anyone to any position.”

▪ The Hill: McCarthy: No “new movement” with Biden on the debt ceiling debate.

▪ The New York Times: White House meeting ended without a breakthrough.

▪ The Atlantic: The debt ceiling wasn’t always so politicized.

The Speaker, standing in the White House driveway, criticized Biden as irresponsible, unserious, untruthful in asserting that House Republicans want to cut veterans’ health benefits (“a lie”), and “not the same Biden who was a senator and a vice president” while dealing with past debt limit debates.

The president today plans to use a speech at a New York community college to admonish House Republicans for passing a bill that he argues would cut “veterans’ health care visits, teachers and school support staffs and Meals on Wheels for seniors,” according to the White House (Reuters).

“I’m hoping that the next two weeks are different,” McCarthy said as he departed 1600 Pennsylvania Ave.

Related Articles

▪ Former Trump White House chief of staff Mick Mulvaney, a contributor to Nexstar’s NewsNation, owner of The Hill, described how Oval Office meetings with congressional leaders can reveal to observers when “not a lot of progress” was made.

▪ Bloomberg News and CNN: Americans are losing confidence in Federal Reserve Chairman Jerome Powell, according to a recent Gallup poll. Assessments of the president, Congress and Treasury Secretary Janet Yellen in relation to the economy also appear lukewarm.

▪ Vox: The nationalist dark side of Biden’s climate and industrial policies: In conversation with a former Biden administration tax economist at the Treasury Department.

LEADING THE DAY

➤ POLITICS

A New York jury on Tuesday found former President Trump liable for sexually abusing writer E. Jean Carroll in a Manhattan department store in the 1990s and defaming her, but not liable for her alleged rape. After deliberating for 90 minutes, the jury arrived at its verdict and awarded Carroll $5 million in damages.

As a civil case, she had to prove her claims by a preponderance of evidence. Trump faces no related criminal charges, which would have required a higher standard (NBC News and The Hill).

“I HAVE ABSOLUTELY NO IDEA WHO THIS WOMAN IS. THIS VERDICT IS A DISGRACE — A CONTINUATION OF THE GREATEST WITCH HUNT OF ALL TIME!” Trump wrote on Truth Social following the verdict.

“I filed this lawsuit against Donald Trump to clear my name and to get my life back. Today, the world finally knows the truth,” Carroll said in a statement Tuesday. “This victory is not just for me but for every woman who has suffered because she was not believed.”

Tuesday’s outcome adds to the list of Trump’s legal challenges. The former president was indicted on 34 counts of falsifying business records in New York over alleged hush money payments made to an adult film star during the 2016 election. He is also under investigation in Georgia for impeding the 2020 election, and faces Justice Department probes for retaining classified documents and actions related to attempts to overturn the 2020 election. On Tuesday, former first lady Melania Trump told Fox News that she’s fully behind her husband’s 2024 bid for the White House, while former Vice President Mike Pence told NBC News he doesn’t think voters will care about the verdict.

▪ The Hill: Trump’s 2024 bid faces fresh uncertainty after Carroll verdict.

▪ Politico: What the verdict in Trump’s sexual assault trial means.

▪ The Atlantic: The astonishing Carroll verdict.

▪ New York magazine’s Intelligencer: Carroll beats Trump.

▪ The Hill: Judge advises jurors in Trump-Carroll case to remain anonymous “for a long time.”

Ahead of Trump’s CNN town hall in New Hampshire tonight, The Hill’s Niall Stanage asks five key questions, including whether the former president will play nice with CNN or lambast the network, and what happens if he repeats election lies on air. Beginning at 8 p.m. ET, the appearance is being described by media critics as a controversial hour of live television. “Keep the remote handy,” advises AZ Central’s media writer.

▪ Politico: Trump world booked CNN hoping for a big audience. Now, they’re in the thick of it.

▪ The Associated Press: CNN town hall moderator Kaitlan Collins, 31, faces a big test.

Former Rep. Liz Cheney (R-Wyo.), previously the vice chair of the House panel that probed the events of the Jan. 6, 2021, attack on the Capitol, is running a one-minute political ad in New Hampshire to criticize Trump’s record ahead of the town hall (The Hill). NBC News reports the video, titled “Risk,” was released by her political action committee. Cheney, who lost her primary bid while combating Trump, has long maintained that the former president is a danger to U.S. democracy and should never get close to the Oval Office again.

Florida Gov. Ron DeSantis (R) has taken a major step ahead of an expected presidential bid, Politico reports, severing his connection to his long-standing state political committee and the tens of millions of dollars that it now controls. DeSantis, a conservative who is seen by many as a major challenger to Trump, is expected to declare his candidacy soon. He has been fine-tuning his stump speech, seeking to bolster his arguments against Biden while figuring out how to differentiate himself from Trump without alienating his loyal base.

“Joe Biden has done more to damage this country in 2 1/2 years than any president in our lifetime,” he said during a speech in Wisconsin.

The Washington Post: Disney expands lawsuit to include new DeSantis-backed legislation.

Meanwhile, Democrats say they are more worried than they’ve been that voters could send Trump back to the White House, write The Hill’s Amie Parnes and Hanna Trudo.

“There is a concern from a lot of people like me, for sure,” one prominent Democratic strategist said. “There’s a disconnect between the consultant class of our party and the voters. They think they can just run a bunch of ads talking about how crazy Donald Trump is [and] that will be enough. That’s just not the case.” Another strategist warned others in his party: “Be very f—ing worried.”

The Hill: Political strategist Donna Brazile says Democrats need to “wake up” to poor Biden polling numbers.

2024 watch: Arizona Senate candidates Sen. Kyrsten Sinema (I-Ariz.) and Democratic challenger Rep. Ruben Gallego are distancing themselves from Biden on immigration as Title 42 expires (The Hill). … Meanwhile, erstwhile Arizona gubernatorial candidate Kari Lake (R) is meeting with senators and GOP campaign officials in Washington this week as she inches closer to a Senate bid (Politico). In Maryland, an increasingly competitive race to succeed retiring Sen. Ben Cardin (D-Md.) added a third contender on Tuesday: Prince George’s County Executive Angela Alsobrooks (D). Already running are Rep. David Trone (D-Md.) and Montgomery County Council Member Will Jawando, while Rep. Jamie Raskin (D-Md.) said he will decide by June (Washington Examiner and Politico). … Former Rep. Mark Walker (R-N.C.) is expected to announce a bid for the governor’s office on May 20 (WCNC).

Former Fox News host and right-wing commentator Tucker Carlson, who was publicly ousted from the network late last month, on Tuesday announced he’d be relaunching his show on Twitter. It’s unclear if the show, which doesn’t have a start date, would jeopardize the payout from Carlson’s existing contracts with Fox (CNN).

➤ CONGRESS

Federal prosecutors have filed criminal charges against embattled Rep. George Santos (R-N.Y.), whose time in office has been characterized by an astonishing pattern of lies and fabrications about his background. As CNN reports, he is expected to appear as soon as today at federal court in New York’s eastern district, where the charges have been filed under seal. The FBI and the Justice Department public integrity prosecutors have been examining allegations of false statements in Santos’s campaign finance filings and other claims (The Washington Post).

Santos insisted earlier this year he would serve out his term despite mounting controversies surrounding his past falsehoods, scrutiny of his finances, and several investigations. McCarthy said he’d “look at the charges” when asked about the topic outside the White House after he and other congressional leaders met with Biden about the debt ceiling (Roll Call).

Politico: McCarthy’s report card: How he’s done on promises to his right flank.

Senate Finance Committee Chairman Ron Wyden (D-Ore.) said he was rebuffed by GOP billionaire Harlan Crow in reply to a written request for a list of gifts Crow gave Supreme Court Associate Justice Clarence Thomas (The Hill).

CBS News: Sen. Dianne Feinstein (D-Calif.) is returning to the Senate after a lengthy absence that fueled calls for resignation.

IN FOCUS/SHARP TAKES

➤ INTERNATIONAL

While Russia’s Victory Day is typically a huge day of celebration across the country and a time for Moscow to flex its muscles, this year, Russian President Vladimir Putin delivered a brief speech in the Red Square to mark Russia’s victory over Nazi Germany in World War II, and the 10-minute parade was described by his supporters and critics alike as weak and lackluster. As The Hill’s Brad Dress reports, the parade featured an underwhelming number of troops and military armor, projecting diminished strength in Moscow as Putin struggles to achieve victory in Ukraine, and the shortened event may also have been an attempt to dodge domestic blowback over the war’s massive human toll.

Politico EU: Downbeat Putin slams West at low-key Victory Day parade in Russia.

The Justice Department said Tuesday that it disrupted a long-running Russian cyberespionage campaign that stole sensitive information from computer networks in dozens of countries, including the U.S. and other NATO members. Officials linked the operation to a unit of Russia’s Federal Security Service, and they accused the hackers of stealing documents from hundreds of computer systems belonging to NATO members, a journalist for a U.S. news organization who reported on Russia, and other targets of interest to the Kremlin (The Associated Press).

“For 20 years, the FSB has relied on the Snake malware to conduct cyberespionage against the United States and our allies — that ends today,” Assistant Attorney General Matthew Olsen, the head of the Justice Department’s National Security Division, said in a statement.

Pakistan’s paramilitary government arrested the ousted Prime Minister Imran Khan on corruption charges Tuesday in a major escalation of a political crisis that has engulfed the country over the past year and that raises the prospect of mass unrest by his supporters. While Pakistani leaders have faced arrest before, Kahn is the first to directly — and with mass popular support — challenge the military, which for years has been the invisible hand wielding power behind the government (The New York Times). The 70-year-old opposition leader appeared in court today for a hearing in which a judge was asked to approve keeping him in custody for up to 14 days (The Associated Press).

▪ Reuters: How Sudan’s paramilitary forces took parts of Khartoum and stormed the army chief’s quarters.

▪ The Hill: Gun-toting gold miners resist Brazil’s attempt to take back the Amazon.

▪ The Hill: Mexico’s president blasts Florida’s new immigration bill as “immoral.”

▪ Reuters: Mexican president discussed migration with Biden ahead of U.S. policy change.

In the leadup to too-close-to-call elections on May 14, Turkish President Recep Tayyip Erdoğan is pulling out all the stops, announcing a 45 percent pay hike for hundreds of thousands of public workers on Tuesday. The raise is seen as a move to attract voters in a tight election race dominated by the economy; once one of his main selling points, Erdoğan’s economic policies are now unpopular, largely due to high inflation. Erdoğan and his challenger, opposition presidential candidate Kemal Kılıçdaroğlu, remain neck and neck in the polls (Politico EU).

▪ The New York Times: As Turkish vote looms, Erdoğan loyalists can’t imagine anyone else in charge.

▪ Al Jazeera: Turkey election: A guide to Erdoğan’s biggest test at the polls.

▪ Politico EU: Turkey’s election gives Greece a migraine.

OPINION

■ Carroll prevails over Trump and scores a victory for women, by Thomas L. O’Brien, editor, Bloomberg Opinion. https://bloom.bg/3VOSMjU

■ Biden no longer does press conferences. That’s not acceptable, by The Washington Post editorial board. https://wapo.st/42FergD

WHERE AND WHEN

📲 Ask 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.

The House will convene at 10 a.m. and begin work on a GOP border security bill as well as legislation that would give states incentives to recover fraudulent unemployment insurance benefit payments during the COVID-19 pandemic.

The Senate meets at 10 a.m. to resume consideration of the nomination of L. Felice Gorordo to be a United States alternate executive director of the International Bank for Reconstruction and Development.

The president will receive the President’s Daily Brief at 9 a.m. Biden will deliver a speech at 1:30 p.m. about the debt limit at Westchester Community College in Valhalla, N.Y. The president will headline two back-to-back campaign receptions in New York City this evening before returning to the White House by 10:20 p.m.

Vice President Harris at 11:35 a.m. will ceremonially administer oaths of office to the commissioners for the White House Initiative on Advancing Educational Equity, Excellence and Economic Opportunity for Hispanics. She will meet with the House Pro-Choice Caucus leadership at 3:30 p.m. in the Eisenhower Executive Office Building.

Treasury Secretary Janet Yellen is in Niigata, Japan, to participate in the Group of Seven meeting of finance ministers and central bank governors.

Economic indicator: The Bureau of Labor Statistics at 8:30 a.m. will report on the Consumer Price Index in April, considered closely watched data. Analysts expect the report to show prices increased 5 percent in April from a year earlier, an improvement over 2022 but still a weight on households compared with prices before the pandemic.

ELSEWHERE

➤ HEALTH & WELLBEING

Women should get screened for breast cancer every other year starting at age 40, according to draft guidance issued Tuesday by the U.S. Preventive Services Task Force. The panel of disease experts said new scientific evidence led it to change its previous recommendation, which was 50 for women without a family history of breast cancer. However, many doctors think the new guidance doesn’t go far enough (NBC News).

The Washington Post: Most U.S. adults say the abortion pill mifepristone should stay on the market, new poll finds.

As the administration and the public move beyond COVID-19 once the public health emergency expires on Thursday, experts warn the virus will not go away and the administration still faces challenges, The Hill’s Brett Samuels and Nathaniel Weixel report. One example: the search for a Centers for Disease Control and Prevention director to succeed departing Rochelle Walensky.

Another result of the end of the public health emergency ending? No more free COVID-19 tests, writes The Hill’s Joseph Choi. With the end of free tests, consumers may need to scramble to get them or opt to bypass that process. An end to no-cost test kits almost certainly means more people will contract COVID-19 and not know it, likely infecting others.

▪ Politico: What goes away when the COVID-19 health emergency ends this week.

▪ CBS News: Maryland based COVID-19 vaccine maker Novavax to chop workforce, expenses.

THE CLOSER

And finally … The Washington Post called the Westminster Kennel Club finale on Tuesday “the Super Bowl of dog shows,” which seems right. About 2,500 dogs — considered the crème de la crème among their breeds — showed off their stuff and fluff at the Billie Jean King National Tennis Center in Flushing, Queens, and the big winner was Buddy Holly, a bewhiskered petit basset griffon Vendéen (also known as a PBGV). The honor was the first for his breed (NPR).

The 6-year-old extrovert bested six other finalists, including Rummie the Pekingese, Winston the French bulldog, Ribbon the Australian shepherd, Cider the English setter, Monty the giant schnauzer and Trouble the American Staffordshire terrier.

Westminster judges can get emotional about their tasks, as The New York Times explained after describing how the experts narrow the field from so many pampered, peppy dogs to seven finalists and then to one four-legged champion.

In March, the American Kennel Club for the first time in three decades crowned a new favorite U.S. dog breed, the French bulldog, which has soared in popularity (and publicity) for several years but was passed over last year for victorious Trumpet, a massive bloodhound, at the Westminster show (The Associated Press).

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