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Presented by Amazon: POLITICO's must-read briefing on what's driving the afternoon in Washington. | | | | |  | | By Eli Okun | | | |  Speaker Kevin McCarthy reportedly is in the early stages of planning with DOD to visit Taiwan later this year. | Jose Luis Magana/AP Photo | Speaker KEVIN McCARTHY has to walk plenty of tightropes: He presides over a narrow and fractious majorityin the House, and faces a Democratic White House and Senate. The debt ceiling fight looms as perhaps the biggest test for McCarthy later this year, but this morning we got evidence of three clashes he’ll have to navigate even sooner. 1. McCarthy vs. moderates: Empowered conservative hardliners could make life pretty difficult for House Republicans in swing districts over the next two years, forcing them to navigate tough votes and branding questions, NBC’s Sahil Kapur reports. But some moderates are signaling they won’t be cowed, standing up to leadership at times and seeking bipartisan compromises. Rep. TONY GONZALES (R-Texas), a retired Navy master chief petty officer: “If you do a little research on what a retired master chief is, it will be crystal clear why I’m going to be a pain in the ass.” Democrats are already planning to make McCarthy pay for his alliance with far-right holdouts to win the speakership:House Majority PAC says it will go up with ads “earlier than ever” and try to link GOP frontliners to the far right on abortion and Social Security. On the flip side, NYT’s Jonathan Swan and Catie Edmondson go long on how Rep. MARJORIE TAYLOR GREENE (R-Ga.) went from pariah to McCarthy buddy: The new speaker recently told a friend, “I will never leave that woman. … I will always take care of her.” Their close alliance was “born of political expediency but fueled by genuine camaraderie, and nurtured by one-on-one meetings as often as once a week,” write Swan and Edmondson. McCarthy sees Greene as a representative of the GOP’s animated far-right base, and he has shifted the party in her direction. Greene, meanwhile, thinks her relationship has given her success in yanking Republican policy positions to the right. Notable: McCarthy had his general counsel call Twitter executives and spend hours trying to get them to reinstate Greene last year. 2. McCarthy vs. China: The speaker is in the early stages of planning with DOD to visit Taiwan later this year, portending another showdown between the U.S. and China after the firestorm then-Speaker NANCY PELOSI provoked with her visit, Punchbowl’s Andrew Desiderio and Jake Sherman report. The Biden administration expects McCarthy’s visit will happen in the spring, amounting to “a herculean effort for the Pentagon.” McCarthy backed Pelosi’s trip at the time, but she provoked plenty of consternation from the White House and days of worried headlines about tensions between the superpowers. A McCarthy flight to Taipei would likely trigger another round of delicate diplomacy. 3. McCarthy vs. Jeffries: Despite Republican vows not to seat them, House Minority Leader HAKEEM JEFFRIES is officially putting up Reps. ADAM SCHIFF (D-Calif.) and ERIC SWALWELL (D-Calif.) to serve on the Intelligence Committee, Punchbowl’s John Bresnahan reports. And Democrats plan to do the same for Rep. ILHAN OMAR (D-Minn.) on the Foreign Affairs Committee. The Schiff and Swalwell decisions are up to McCarthy alone, but booting Omar will go to the full chamber. The Schiff/Swalwell letter WORTH A THOUSAND WORDS — “Former President Donald Trump posed for picture with former Philly mob boss Joey Merlino at South Florida golf club,” by the Philly Inquirer’s Chris Brennan FOR YOUR RADAR — “Former top FBI official Charles McGonigal arrested over ties to Russian oligarch Oleg Deripaska,” by ABC’s Luke Barr and Aaron Katersky: “[CHARLES] McGONIGAL retired from the FBI in 2018. He was arrested Saturday afternoon after he arrived at JFK Airport following travel in Sri Lanka … McGonigal is charged with violating U.S. sanctions by trying to get [OLEG] DERIPASKA off the sanctions list. … McGonigal and [court interpreter SERGEY] SHESTAKOV, who worked for the FBI investigating oligarchs, allegedly agreed in 2021 to investigate a rival Russian oligarch in return for payments from Deripaska.” Good Monday afternoon, and thanks for reading Playbook PM. Who would surprise you most to see posing with DONALD TRUMP? Drop me a line at eokun@politico.com.
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Learn how Amazon is supporting veterans and military spouses. | | | ALL POLITICS PULL UP A CHAIR — Trumphas privately been supporting RONNA McDANIEL to be reelected as RNC chair without making a public splash, AP’s Steve Peoples reports. But Trump could still announce a McDaniel endorsement if his team thinks it necessary before Friday’s vote. His top advisers CLAYTON HENSON, CHRIS LaCIVITA and SUSIE WILES will be at the RNC meeting in California. Meanwhile, McDaniel challenger HARMEET DHILLON may bring KARI LAKE and country singer JOHN RICH. 2024 WATCH — Rev. FRANKLIN GRAHAM, one of the most significant evangelical supporters of Trump’s presidency, is planning to stay out of the 2024 Republican presidential primary, he tells CBS’ Aaron Navarro and Cristina Corujo. Graham’s choice not to endorse anyone was “an easy decision,” he says. And several other evangelical leaders are waiting to throw their support anywhere too, as the evangelical vote broadly remains unsettled. IT’S OFFICIAL — Rep. RUBEN GALLEGO (D-Ariz.) jumped into the Senate race today with a launch video focused on his personal story, his combat experience and restoring the American dream. On message: “I’m better for this job than [Sen.] KYRSTEN SINEMA because I haven’t forgotten where I came from,” Gallego told AP’s Jonathan Cooper in Phoenix, implicitly contrasting their policy positions relative to their similarly tough upbringings. ANNALS OF INFLUENCE — Boeing lobbyist ZIAD “Z” OJAKLI is working to burnish the company’s reputation in Washington after the 737 Max disasters, Bloomberg’s Julie Johnsson reports. And following a win in Congress’ omnibus spending bill last month, the low-profile Beltway insider is focused on pushing the White House to support restarting sales to China. Taking over a lobbying shop that was smarting from departures and company turmoil, Ojakli has “filled several dozen empty posts and worked his connections from previous jobs.” Company executives are consistently talking with chief of staff RON KLAIN and finding Commerce Secretary GINA RAIMONDO open to discussing trade matters. DEMOCRACY WATCH — “Even after New Mexico shootings, little GOP reckoning over election denialism,” by WaPo’s Amy Gardner and Dan Rosenzweig-Ziff: “After [SOLOMON] PEÑA’s arrest, Republican leaders condemned the attacks, which included a spray of bullets into a 10-year-old’s bedroom, and acknowledged that the former candidate’s criminal history should have been a red flag. There was far less apparent interest in a reckoning over Peña’s beliefs in widespread voter fraud, a false theory pushed relentlessly by former president Donald Trump and his supporters.” CONGRESS DOCU-DRAMA — House Oversight Chair JAMES COMER (R-Ky.) today officially requested that the Secret Service provide visitor logs for President JOE BIDEN’s home in Wilmington, Del., following the discovery of classified materials there. The White House counsel’s office said last week that no such logs exist, which Comer acknowledged, but he said the Secret Service creates records of people who interact with sites it protects. He asked for information within two weeks. The letter STAYING THE COURSE — Rep. MICHAEL GUEST (R-Miss.) will be reappointed House Ethics chair, McCarthy announced. THE INVESTIGATIONS — “Democrats are asking a government watchdog to probe why the IRS didn’t adequately audit President Donald Trump despite its own guidelines and raising questions about potential political interference with the agency,” Benjamin Guggenheim reports. NAME TO KNOW — ArentFox Schiff’s DAVID HANKE is in talks to be GOP staff director for the new House committee on China competition, The Dispatch’s Haley Byrd Wilt scooped.
| | | | 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. | | | | | JUDICIARY SQUARE SCOTUS WATCH — The high court today asked the solicitor general for opinions on the constitutionality of Republican laws in Florida and Texas that prevent social media sites from removing some types of political speech, WaPo’s Robert Barnes and Cat Zakrzewski report. The court hasn’t yet decided whether to take up the significant First Amendment case, and waiting for the Biden administration to weigh in will delay it further. — The Supreme Court has yet to address directly the question of bathrooms for transgender children, but a recent court ruling in Atlanta may force them to take up the issue, NYT’s Adam Liptak reports. BEYOND THE BELTWAY FASCINATING DYNAMIC — “D.C.-based GOP groups branch out to influence state legislatures,” by Pluribus’ Humberto Sanchez: “The Republican Main Street Partnership wants to help state legislators it refers to as the most interested in governing to create their own groups and to collaborate on legislative priorities. Aligned with the U.S. House Freedom Caucus, the State Freedom Caucus Network is helping to establish constellations of similar groups to aid the fight for conservative policies in lower-profile arenas that it sees as being just as impactful on Americans’ lives. Both efforts also include helping to establish farm teams of legislators to one day run for Congress.” AMERICAN VIOLENCE — “Juvenile Crime Surges, Reversing Long Decline. ‘It’s Just Kids Killing Kids,’” by WSJ’s Dan Frosch and Zusha Elinson POLICY CORNER CLIMATE FILES — Biden and congressional Democrats successfully landed massive new investments in clean energy. The next step: the sales pitch to the American people. “The White House says it is piecing together a plan to partner with state governments, contractors, retailers and social media influencers to get the word out,” AP’s Chris Megerian, Hannah Fingerhut and Matthew Daly report. Policymakers will have to persuade millions of consumers to spring for electric cars, solar panels and more. But raising awareness — and convincing people that the changes make economic sense — could be a difficult task. THE TAXMAN COMETH TO THE PHONE — The upcoming tax filing season amounts to the first big test of the massive new investments in the IRS, as an expanded staff aims to improve customer service significantly, NYT’s Alan Rappeport reports. Using Inflation Reduction Act dollars, the agency “is racing to prepare 5,000 recently hired agents to answer the telephones and respond to questions from taxpayers. It is also rolling out new automated systems and staffing up its brick-and-mortar taxpayer assistance centers.” HOLDING STEADY — Biden’s Cabinet has seen a striking, and historically anomalous, lack of turnover through his first two years in office: All 15 of the Cabinet secretaries in the presidential line of succession are still in their jobs, and none have signaled plans to depart, NBC’s Peter Nicholas and Carol Lee report. At this point in his tenure, Trump had replaced seven. AMERICA AND THE WORLD DANCE OF THE SUPERPOWERS — “U.S. Weapons Industry Unprepared for a China Conflict, Report Says,” by WSJ’s Gordon Lubold: “[T]he protracted [Ukraine] conflict has also exposed the strategic peril facing the U.S. as weapons inventories fall to a low level and defense companies aren’t equipped to replenish them rapidly.” SANCTIONS LATEST — “U.S. hits Iran with fresh sanctions amid subsiding protests,” by Nahal Toosi: “The U.S. Treasury Department announced that the sanctions would target a foundation linked to Iran’s Islamic Revolutionary Guard Corps, five of its board members, four senior IRGC commanders and Iran’s deputy minister of intelligence and security. The action was coordinated with Britain and the European Union.”
| | | | JOIN POLITICO ON 2/9 TO HEAR FROM AMERICA’S GOVERNORS: In a divided Congress, more legislative and policy enforcement will shift to the states, meaning governors will take a leading role in setting the agenda for the nation. Join POLITICO on Thursday, Feb. 9 at World Wide Technology's D.C. Innovation Center for The Fifty: America's Governors, where we will examine where innovations are taking shape and new regulatory red lines, the future of reproductive health, and how climate change is being addressed across a series of one-on-one interviews. REGISTER HERE. | | | | | THE ECONOMY CRYSTAL BALL — Where will inflation go from here? NYT’s Jeanna Smialek surveys the possibilities that economists expect after half a year of prices finally starting to moderate. They range from rapid deflation to inflation that stays stuck at higher levels than pre-pandemic, and everything in between. BY THE NUMBERS — Wage increases last year were highest for Black, young and low-income workers, WSJ’s Gabriel Rubin reports from new Labor Department data. Overall, wages rose 7.4% in 2022, beating the 7.1% year-over-year rise in prices in the fourth quarter. ANTITRUST THE PROCESS — The planned merger between Kroger and Albertsons could transform the American grocery store landscape and pay out billions of dollars to shareholders, NYT’s Julie Creswell reports. The companies say it would benefit consumers. But the deal’s completion is far from a sure thing, as legal challenges mount and opposition arises from labor unions, consumer advocates and independent grocers. WAR IN UKRAINE HAPPY TANKS-GIVING — The latest smoke signal from Germany: Defense Minister BORIS PISTORIUS said the country will “soon” make a decision on whether to send its tanks to Ukraine or allow other countries to send them. More from WaPo WORLDS COLLIDE — “How Texas election deniers backed a failed effort to bring a mobile hospital to Ukraine,” a big investigation from The Dallas Morning News’ Cassandra Jaramillo, Lauren McGaughy and Allie Morris in partnership with ProPublica: “Leaders with True the Vote, a group that spread discredited election conspiracy theories, continued to promote the hospital project for months after realizing it was not feasible.” MEDIAWATCH DEPT. OF SPECULATION — N.Y. Post’s Josh Kosman has a story up circulating rumors that JEFF BEZOS might sell WaPo to buy the Washington Commanders (because DAN SNYDER, mad at the newspaper’s exposes, wouldn’t accept it otherwise). There are few concrete indications in the story that Bezos actually plans to sell the Post, but one potential buyer tells Kosman they would bid for the paper. PLAYBOOKERS MEDIA MOVES — Former Rep. Mayra Flores (R-Texas)is now senior political contributor at Americano Media. … Alayna Treene will join CNN as a reporter covering Capitol Hill investigations and presidential politics. She previously was a congressional reporter for Axios.…POLITICO announced its 2023-2024 class of fellows: Mia McCarthy, Eric Bazail-Eimil, Lawrence Ukenye and Christine Mui. TRANSITIONS — Rachel Petri will be campaign manager forSen. Sherrod Brown’s(D-Ohio) reelect, The Plain Dealer’s Andrew Tobias reports. She worked on Brown’s comms team on his latest campaign, and most recently was deputy campaign manager for Sen. Raphael Warnock’s (D-Ga.) reelect. … KP Pratt is now EVP and chief of staff at Smith Dawson & Andrews. She previously was chief of staff for Rep. Peter DeFazio (D-Ore.). … Robin Lloyd is now SVP at Rational 360. She previously was a managing director at Giffords and is a Michael Bloomberg alum. … … Shivani Vakharia is now associate director for congressional and government affairs at the Center for Strategic and International Studies. She previously was a congressional affairs officer at the National Endowment for Democracy. … Austin Matheny is now a comms manager at Environmental Defense Fund. He previously was a comms manager on Oceana’s climate team. WELCOME TO THE WORLD — Abby Jagoda, VP of public policy at ICSC, and Jonathan Jagoda, SVP for legislative affairs at Federation of American Hospitals, welcomed Milo Bruce Jagoda on Saturday. Pic… Another pic
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