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Presented by Instagram: POLITICO's must-read briefing on what's driving the afternoon in Washington. | | | | |  | | By Garrett Ross | | | | 
Treasury Secretary Janet Yellen sent a letter on Friday to congressional leaders urging action on the debt ceiling. | Jacquelyn Martin/AP | YELLEN URGES DEBT CEILING ACTION — Treasury Secretary JANET YELLEN this morning sent a letter to Speaker KEVIN McCARTHY and other congressional leaders urging Congress to act “promptly” to raise the debt ceiling and avoid defaulting. Yellen writes that the debt is projected to reach its “statutory limit” on Thursday, though she says it is “unlikely that cash and extraordinary measures will be exhausted before early June.” Reminder: These Treasury “X date” estimates tend to be conservative and are frequently revised as new federal revenue and spending data comes in. But Yellen’s missive appears likely to accelerate a showdown that many on Capitol Hill have been expecting in late summer or early fall. “Once the limit is reached, Treasury will need to start taking certain extraordinary measures to prevent the United States from defaulting on its obligations,” Yellen writes. “Failure to meet the government’s obligations would cause irreparable harm to the U.S. economy, the livelihoods of all Americans, and global financial stability.” Read the full letter… More from Zachary Warmbrodt BIDEN’S DOCU-DRAMA — CBS’ @ArdenFarhi: “The President’s personal attorney in the documents matter is BOB BAUER, according to the WH and a 2nd source familiar. Bauer is former WH counsel to Pres. [BARACK] OBAMA, a longtime Dem campaign lawyer and an NYU law professor. Bauer also serves as Obama's representative to the National Archives. His wife, ANITA DUNN, is a senior White House advisor to President Biden.” TRUMP’S DOCU-DRAMA — “Justice Department wants to talk to people hired to search Trump properties for classified docs,” by CNN’s Katelyn Polantz and Kaitlan Collins: “The Justice Department is seeking to question two people who searched DONALD TRUMP’s properties in November, as federal investigators have asked whether the former president returned all classified documents to the federal government, sources familiar with the probe tell CNN. “The development is the latest sign that the Justice Department is continuing to investigate, after telling a federal court last year it believed there was possible obstruction of justice related to Trump’s handling of classified materials. … “Prosecutors from special counsel JACK SMITH’s office and Trump’s defense lawyers have gone back and forth several times in the past two months over whether Trump has fully complied with a subpoena issued last May for classified documents from his time in the White House. That has prompted Trump’s lawyer TIMOTHY PARLATORE to twice certify in writing that Trump’s team searched his homes and offices for more records.” MEANWHILE — The Trump Organization is facing $1.6 million in penalties levied in Manhattan state court this morning following its conviction last month on all charges in a 13-year criminal tax scheme. Trump, you’ll recall, was not personally charged, and the company is planning to appeal. More from Janaki Chadha in New York TOP-ED — KELLYANNE CONWAY writes for NYT Opinion: “The Case for and Against Trump”: “Shrugging off Mr. Trump’s 2024 candidacy or writing his political obituary is a fool’s errand — he endures persecution and eludes prosecution like no other public figure. That could change, of course, though that cat has nine lives. At the same time, it would also be foolish to assume that Mr. Trump’s path to another presidency would be smooth and secure.” Happy Friday afternoon, and thanks for reading Playbook PM. Programming note: Playbook PM will be off on Monday for Martin Luther King Jr. Day. Playbook will still be in your inbox. Drop me a line at gross@politico.com.
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Learn more about our tools and set them up today. | | | ALL POLITICS THE RNC RACE — “Ronna McDaniel sidesteps publicly debating her RNC chair rivals,” by Natalie Allison: “Two conservative media entities, the John Fredericks Media Network and Real America’s Voice, are set to host a candidate forum on Jan. 25 live from the Dana Point, Calif., resort where RNC members will gather to elect their next chair. Both HARMEET DHILLON, the RNC committeewoman from California, and MyPillow CEO MIKE LINDELL, will be participating. But [RONNA] McDANIEL, who is seeking a fourth term in the role, has declined to attend, citing her existing commitment to a forum being held for RNC members only.” HURRY UP AND WAIT — “Trump’s 2024 bid is off to a rough start. But other Republicans aren’t eager to take him on just yet,” by CNN’s Gabby Orr: “While nearly a dozen 2024 campaign operatives and advisers who spoke to CNN on the condition of anonymity insisted that Trump’s political appeal is more limited than ever, most said they still wouldn’t want their horse to be first in the race after him. Their reasons vary. “Some worry about sustainability, wanting to saturate the airwaves just before the early contests in Iowa and New Hampshire instead of burning through cash to build name ID while Trump is pummeling them on his Truth Social platform without distraction. Others are hesitant to subject themselves to the concentrated attacks they would no doubt face from the former president and other potential rivals if they were next to jump in, unsure if the earned media in a two-person field would work for or against them.” CONGRESS INVESTIGATION INVENTORY — “Afghanistan withdrawal investigation launched by top Republican on House Foreign Affairs Committee,” by CNN’s Kylie Atwood: “The top Republican on the House Foreign Affairs Committee on Thursday requested from the State Department a vast number of documents related to the Biden administration’s withdrawal from Afghanistan, marking the official launch of the newly Republican-led panel’s investigation into the chaotic exit. Texas Rep. MICHAEL McCAUL, the chairman of the House Foreign Affairs Committee, gave the department a deadline of January 26 to respond. He threatened the power of subpoena if the department does not comply.” FRIENDLY REMINDER — “Speaker McCarthy’s tidy 1st week disguises trouble ahead,” by AP’s Lisa Mascaro: “The daunting political math confronting McCarthy remains the same: With a 222-seat majority, he can only lose a few detractors on any issue unless he reaches across the aisle for help and backing from Democrats for the 218 votes typically needed to pass legislation. While the first bills the House Republicans easily approved were essentially GOP favorites, designed to unite their side of the aisle and even pull in some Democratic support, the next legislative lifts are expected to be more vigorous and politically risky.” — Related read: “House rebels pushed to change Congress. Will they make it harder to get things done?” by WaPo’s Amy Gardner and Marianna Sotomayor ONE TO WATCH — “NSA director pushes Congress to renew surveillance powers,” by AP’s Nomaan Merchant and Eric Tucker: “The remarks by Army Gen. PAUL NAKASONE, director of the National Security Agency, opened what’s expected to be a contentious debate over provisions of the Foreign Intelligence Surveillance Act that expire at year’s end.” — Flashback, Jan. 11, 2018: “Trump undercuts White House stance hours before critical surveillance vote” WIN SOME, LOSE SOME — “Nancy Pelosi’s husband lost over $500,000 selling Tesla stock in December as investors fretted about Elon Musk's tweets,” by Insider’s Brent Griffiths and Madison Hall: “In total, Pelosi reported losing over $2.5 million in the final weeks of 2022. His trades appear to be an example of harvesting, an investing strategy where traders sell some investments at a loss in order to lower the taxes they will face for more successful parts of their portfolio. Pelosi's Tesla sale wasn't even his biggest loss, he reported losing nearly $734,000 on call options for Salesforce.”
| | | | 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. | | | | | POLICY CORNER THROWING THE BOOK — “Are book bans discrimination? Biden administration to test new legal theory,” by WaPo’s Hannah Natanson: “If the government finds in the ACLU’s favor, the determination could have implications for schools nationwide, experts said, forcing libraries to stock more books about LGBTQ individuals and requiring administrators, amid a rising tide of book challenges and bans, to develop procedures ensuring student access to books that some Americans, especially right-leaning parents, deem unacceptable.” THE ECONOMY DIGGING INTO THE NUMBERS — “Inflation Weary Americans Find Some Relief as Prices Fall for Dozens of Products,” by WSJ’s Austen Hufford: “Prices were lower last month for dozens of products including airline tickets, chicken and shoes, providing some modest relief to Americans who faced historically high inflation in 2022.” BEYOND THE BELTWAY DEVASTATION IN THE SOUTH — “Tornado hits Selma, Alabama; 8 deaths reported across South,” by AP’s Kim Chandler and Jeff Martin CALIFORNIA’S CRISIS — “In a Drought, California Is Watching Water Wash Out to Sea,” by NYT’s Ralph Vartabedian in Los Angeles: “Heavy storms have flooded parts of California, but the state has been unable to capture billions of gallons of water that are flowing unchecked into the ocean. Los Angeles is embarking on an ambitious new program to change that.”
| | | | A message from Instagram:   | | | AMERICA AND THE WORLD PULLOUT FALLOUT — “‘Burying Us Alive’: Afghan Women Devastated by Suspension of Aid Under Taliban Law,” by NYT’s Christina Goldbaum and Najim Rahim: “Since the Taliban administration banned women from aid work, many groups have suspended their operations in the country and warned of permanently shutting down if the ban remains.” WAR IN UKRAINE ON THE GROUND — “Russia says it took Soledar, Ukraine denies its capture,” by AP’s Andrew Meldrum … “Giant Ukrainian Salt Mine Takes Center Stage in War,” by WSJ’s Alistair MacDonald and Oksana Pyrozhok BIG SWING — “The War in Ukraine Will Be Long. Is the West Ready?” by WSJ’s Yaroslav Trofimov: “With Russia announcing a mobilization of hundreds of thousands of soldiers in October and switching its economy to a war footing, time could be on Moscow’s side. So far, neither the U.S. nor Europe has made the adjustments, especially in military production, that are necessary for sustaining Ukraine in a war that could potentially drag on for several years. Neither are they immune to pain from further energy shocks.” KREMLINOLOGY — “Rifts in Russian military command seen amid Ukraine fighting,” AP: “The fighting for [Soledar and nearby Bakhmut] has highlighted a bitter rift between the Russian Defense Ministry leadership and YEVGENY PRIGOZHIN, a rogue millionaire whose private military force known as the Wagner Group has played an increasingly visible role in Ukraine. Putin’s shakeup of the military brass this week was seen as a bid to show that the Defense Ministry still has his support and is in charge as the troubled conflict nears the 11-month mark.”
| | | | POLITICO’s exclusive interview with Uber CEO Dara Khosrowshahi will take place on Thursday, January 19 at 1:30 PM EST – live from the Davos mountaintop. Register today to join us online. | | | | | MEDIAWATCH BEAST SELLER? — “Barry Diller Explores Sale of The Daily Beast,” by NYT’s Benjamin Mullin: “Mr. Diller’s 14-year run as owner of the internet muckraker may be coming to an end. … The sale process is in the early stages, the people said, and it may not result in a deal. The price The Daily Beast might command in a sale is not clear.” PLAYBOOKERS Sydney Gallego is really not having any of this. MEDIA MOVE — Mackenzie Wilkes is now a K-12 national education reporter and writer at POLITICO. She previously was a fellow at POLITICO. WHITE HOUSE ARRIVAL LOUNGE — Erica Knievel Songer is now counsel to the VP and special assistant to the president. She most recently was senior counsel to the assistant attorney general of the civil rights division. TRANSITIONS — Sen. John Hickenlooper (D-Colo.) has added Kaitlin Hooker as press secretary and Maddie Hughes as deputy press secretary. Hooker previously was comms director for Rep. Tom O’Halleran (D-Ariz.). … Denzel McGuire is now chief of federal and state government relations for the Distilled Spirits Council of the United States. She previously was principal at McGuire LLC and is a Trump OMB, Mitch McConnell and John Kyl alum. … Wasi Mohamed is now chief of staff for Rep. Summer Lee (D-Pa.). He most recently was senior policy officer at The Pittsburgh Foundation. … … Matt Stubeck is now senior legislative assistant for Rep. Dave Joyce (R-Ohio). He previously was a legislative assistant for Rep. Peter Meijer (R-Mich.) and is a Will Hurd alum. … James Zandstra is now legislative assistant for Rep. Kevin Kiley (R-Calif.). He previously was a legislative aide for Rep. Peter Meijer (R-Mich.). … Colleen Castle is now deputy director of federal policy at the Council for a Strong America. She most recently was legislative director for Rep. Vicky Hartzler (R-Mo.).
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