Reid playing for leverage with jobs bill

Reid playing for leverage with jobs bill

Senate Majority Leader Harry ReidHarry Mason ReidGOP’s midterm strategy takes shape Battle of the billionaires drives Nevada contest Senate Democrats should stop playing politics on Kavanaugh MORE (D-Nev.) has made it clear that he will not schedule a vote on President Obama’s jobs package until after the upper chamber moves a China currency bill that the administration does not support.

Reid is wielding a significant amount of leverage with the White House on the China legislation, which is unlikely to be signed into law in the 112th Congress. Yet passing the bill through the Senate — which is expected to happen next month — would help Democratic incumbents on the campaign trail, where China-bashing usually resonates. 

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The bill would crack down on what critics contend is China’s policy of manipulating currency to give its companies a trading advantage. The Obama administration is not eager to confront China over its currency policy, but congressional Democrats are eager to tackle it — especially politically vulnerable Democratic incumbents in Midwestern states. They include Sens. Sherrod BrownSherrod Campbell BrownThe Hill's Morning Report — Trump’s GOP feuds dominate ahead of midterms Dustbin 2020: The best Dems who surely won’t get the nomination Vulnerable Dems side with Warren in battle over consumer bureau MORE (Ohio), Debbie StabenowDeborah (Debbie) Ann StabenowTrump draws bipartisan fire over Brennan The farm bill gives Congress a chance to act on the Pet and Women Safety (PAWS) Act Michigan county investigating ballot shortage in election MORE (Mich.) and Bob CaseyRobert (Bob) Patrick CaseyTop Koch official fires back at critics: We are not an 'appendage' of the GOP Dem senator: Media should stop covering Trump rallies like they're breaking news The Hill's Morning Report: Trump tries to rescue Ohio House seat as GOP midterm fears grow MORE Jr. (Pa.), whose states’ economies have suffered because of a steady outflow of manufacturing jobs to China.

Some Senate Democrats have described the president’s position as “eerily silent.” And that’s how they want it to stay, knowing that opposition from Obama would hurt their cause.

The China measure has long been a top priority for Sen. Charles SchumerCharles (Chuck) Ellis SchumerTo make the House of Representatives work again, make it bigger Reforms can stop members of Congress from using their public office for private gain Election Countdown: GOP worries House majority endangered by top of ticket | Dems make history in Tuesday's primaries | Parties fight for Puerto Rican vote in Florida | GOP lawmakers plan 'Freedom Tour' MORE (D-N.Y.), one of Reid’s top deputies. 

The then-Democratic-controlled House last year passed a China currency bill, 348-79, a month before the elections, but the top three Republicans in the House — Speaker John BoehnerJohn Andrew BoehnerHouse Dem: Party's aging leaders is 'a problem' Women poised to take charge in Dem majority Freedom Caucus ponders weakened future in minority MORE (Ohio), Majority Leader Eric CantorEric Ivan CantorHillicon Valley: GOP leader wants Twitter CEO to testify on bias claims | Sinclair beefs up lobbying during merger fight | Facebook users experience brief outage | South Korea eyes new taxes on tech Sinclair hired GOP lobbyists after FCC cracked down on proposed Tribune merger California wildfires prompt deficit debate in Congress MORE (Va.) and Majority Whip Kevin McCarthy (Calif.) — voted no. 


This year, 200 House lawmakers have co-sponsored companion legislation, including 56 Republicans. 

Many Republican freshmen made taking a tough stand on China a prominent theme in their 2010 campaigns. However, it’s unlikely to hit the House floor any time soon.

That would give Reid and Schumer an opportunity to bash BoehnerJohn Andrew BoehnerHouse Dem: Party's aging leaders is 'a problem' Women poised to take charge in Dem majority Freedom Caucus ponders weakened future in minority MORE for refusing to act on a bipartisan jobs bill, countering criticism from the GOP that the Senate is a graveyard for a slew of House-passed bills. 

Boehner’s office did not comment for this article.

Obama has made a $447 billion jobs package his top legislative priority. Earlier this month, Obama urged Congress to pass his jobs bill “now.” Three weeks later, Reid has not yet scheduled a vote.

Obama also favors congressional ratification of trade deals with South Korea, Colombia and Panama. 

The president touted the trade pacts in a speech to a joint session of Congress earlier this month to loud Republican applause while Reid and House Minority Leader Nancy Pelosi (D-Calif.) stayed glued to their seats and refused to clap. 

Reid later said he is “not a big fan of free-trade agreements” and also noted that he and his colleagues had various concerns about the jobs package. 

The Nevada Democrat has promised to proceed with Obama’s legislative wish list, but only after the Senate considers the China bill, deftly using the Senate calendar to keep any possible opposition from the administration at bay. 

Reid said Monday evening that the China legislation would take priority. 

“I don’t think there’s anything more important for a jobs measure than China trade. That’s what we’re going to work on next week. China trade is a jobs bill. It’s long, long overdue,” he told reporters. “It’s a bipartisan bill, and I feel very comfortable we’re going to pass that.”

One Senate Democratic aide said the Obama administration would be wise not to take potshots at the legislation, knowing it will depend on Reid to pass the jobs package and the trade bills. 

Another Senate Democratic aide predicted the administration would steer clear of the issue regardless of Reid’s political maneuver because it does not want to oppose the popular bipartisan legislation. 

“Whatever reservations the administration may have about this bill, they realize how popular it is, and there is very little reason to vocally oppose it, even if privately they hope it doesn’t pass,” said the source. 

Democratic senators, such as Brown, the lead sponsor of the legislation, have repeatedly raised the China currency bill in conversations with senior administration officials. Labor leaders such as Richard Trumka, president of the AFL-CIO, have also made the case for the measure. 

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“At the highest levels, we have spoken to the White House and the secretary of Treasury,” said Robert Baugh, executive director of the AFL-CIO Industrial Union Council. “They’re holding their cards pretty close to the vest.”

Baugh said Trumka has pressed Obama and Vice President Biden on the issue for years. Still, the White House has declined to take a public position on the legislation, which Democrats in Congress have interpreted as veiled opposition. 

Treasury Secretary Timothy Geithner has noted the administration continues to urge Chinese officials to give the yuan more room to appreciate in value but has refused to call China out as a currency manipulator. 

An administration official told The Hill the White House is reviewing the legislation and has not yet taken a position.

The legislation would require the secretary of the Treasury and the U.S. Trade Representative to treat currency manipulation as an anti-competitive trade practice and take countervailing action to boost domestic companies. 

It would also set into motion government studies of international monetary policy and currency exchange rates. 

The Senate is scheduled to vote to proceed to the China currency legislation on Monday, and it is expected to pass the chamber next month with strong bipartisan support. The Republican co-sponsors include Sens. Richard BurrRichard Mauze BurrWhite House weighs clawing back State, foreign aid funding Conway blasts Brennan: 'Why is he screaming' about losing his clearance 'on a lower-rated cable network?' The Hill's Morning Report: Dems have a majority in the Senate (this week) MORE (N.C.), Susan CollinsSusan Margaret CollinsWhite House weighs clawing back State, foreign aid funding The Hill's Morning Report: Dems have a majority in the Senate (this week) Overnight Defense: Pompeo creates 'action group' for Iran policy | Trump escalates intel feud | Report pegs military parade cost at M MORE (Maine), Lindsey GrahamLindsey Olin GrahamSenate gets to work in August — but many don’t show up Graham: Flynn should lose security clearance Press needs to restore its credibility on FBI and Justice Department MORE (S.C.), Jeff SessionsJefferson (Jeff) Beauregard SessionsSentencing reform deal heats up, pitting Trump against reliable allies Hill.TV poll: 41 percent of Americans want Mueller to wrap up probe before midterms The Hill's Morning Report: Dems have a majority in the Senate (this week) MORE (Ala.) and Olympia Snowe (Maine). 

Former Massachusetts Gov. Mitt Romney (R) has also latched on to what could be a potent issue in the 2012 election. 

Romney unveiled a Web video in July accusing Obama of not following up on his campaign promise to “take China to the mat,” if necessary. 

A study released last week by the Economic Policy Institute, a liberal-leaning think tank, found that the U.S. lost an estimated 2.8 million jobs, mostly in the manufacturing sector, as a result of the nation’s trade deficit with China since China’s entry into the World Trade Organization in 2001.