Somewhere, Francis Underwood is smiling.
MARK YOUR CALENDAR: JUNE 19. That’s the date of the leadership election to replace House Majority Leader Eric CantorEric CantorRyan reelected Speaker in near-unanimous GOP vote Financial technology rules are set to change in the Trump era Trump allies warn: No compromise on immigration MORE (R-Va.), who lost last night to Tea Party challenger Dave Brat in a political primary.
--OUT FRONT SO FAR: Majority Whip Kevin McCarthy (Calif.), Rep. Pete Sessions (Texas), and House Financial Services Chairman Jeb Hensarling (Texas).
TOMORROW STARTS TONIGHT – DAVE BRAT ON CAPITALISM, CHRIST AND HITLER:
Less than 24 hours since Brat stunned Washington, a portrait of the Tea Party economics professor has emerged: A policy wonk who draws on his religious views to bolster his arguments.
More on that in a sec, but first – the Brat papers. OVERNIGHT FINANCE combed through some of Brat’s academic writing to learn more about the prof.
--ON MARKETS: “If markets are bad, which they are, that means people are bad, which they are. Want good markets? Change the people. If there are not nervous twitches in the pews when we preach, then we are not doing our jobs.”
--ON GOP: “The political Right likes to champion individual rights and individual liberty, but it has also worked to enforce morality in relation to abortion, gambling, and homosexuality.”
--ON HITLER: “God asked the people of Israel: Are you sure you want a king? That is a good question to ask at this time,” Brat wrote in 2011. “The church needs to regain its voice and offer up a coherent social vision of justice and rationality. Soon. The Bible and then Calvin is a good start... Capitalism will be in the final chapters.” He goes on to write that he fears the rise of dictators like Adolf Hitler from within a feeble society: “I have the sinking feeling that it could all happen again, quite easily.”
EMAIL DU JOUR, a senior GOP House staffer writes OVERNIGHT FINANCE about the fight for Cantor’s post: "It's like high school all over: cliques whispering in the hallways, people talking up their friends, and everyone trying to get in with the cool kids."
Enough high school talk...
BLOCKED – ELIZABETH WARREN’S STUDENT LOAN BILL. Suddenly, the Democrats’ millennial week and Hillary’s book tour seem like small potatoes.
Ramsey Cox for the hometown paper: “Senate Republicans blocked consideration of a bill that would allow people to refinance their student loan debt in a 56-38 vote on Wednesday.
“Democrats needed 60 votes to advance the refinancing measure, but Sens. Susan CollinsSusan CollinsOvernight Healthcare: Trump reinstates ban on US funds for overseas abortions GOP senators: Give states the option of keeping ObamaCare GOP senators to introduce ObamaCare replacement plan MORE (Maine), Bob CorkerBob CorkerSenate panel votes to confirm Tillerson Rubio to vote for Tillerson Top Dem comes out against Tillerson ahead of key vote MORE (Tenn.) and Lisa MurkowskiLisa MurkowskiCommittee to vote on Zinke, Perry nominations Tuesday Trump, GOP set to battle on spending cuts What we learned from Rick Perry's confirmation hearing MORE (Alaska) were the only Republicans to vote with Democrats.” http://bit.ly/SAdXVl.
SHOT, Warren to The Boston Globe earlier this week: "It’s a basic question on our values: Does this country protect millionaires’ and billionaires’ tax loopholes? Or does it try to help young people who are just starting their economic lives?"
CHASER, via Senate Minority Leader Mitch McConnellMitch McConnellOvernight Finance: Trump takes US out of Pacific trade deal | WH says Trump has left his businesses | Lobbyists expect boom times McConnell to Dems: Work with us on GOP's 'formidable' challenges McCain: Trump's withdrawal from TPP a 'serious mistake' MORE (R-Ky.): “The Senate Democrats’ bill isn’t really about students at all. It’s really all about Senate Democrats because Senate Democrats don’t actually want a solution for students. They want an issue to campaign on — to save their own hides in November.”
Back to Cantor...
1.) The GOP frenzy has begun. And The Hill’s Russell Berman has the gamer: “The No. 3 Republican, Majority Whip Kevin McCarthy (Calif.), is expected to seek Cantor’s post as majority leader, the second-ranking post behind Speaker John BoehnerJohn BoehnerLobbyists expect boom times under Trump Last Congress far from ‘do-nothing’ Top aide: Obama worried about impeachment for Syria actions MORE (R-Ohio). But [McCarthy] faced an immediate challenge from a Texas conservative, Rep. Pete Sessions (R-Texas).” http://bit.ly/1kPvHI2.
2.) ...and then there’s JEB HENSARLING. “I am humbled by the many people who have approached me about serving our Republican Conference in a different capacity in the future. There are many ways to advance the causes of freedom and free enterprise, and I am prayerfully considering the best way I can serve in those efforts.” Pete Schroeder reports for The Hill: http://bit.ly/1qw1CgS.
If Jeb goes to leadership...
3.) Rep. Frank Lucas (R-Okla.) eyes House FinServ chairmanship. “Look, I joined the Financial Services Committee 20 years ago because I thought it has an important impact on America. If there was an opening at the top of the committee, there would be a melee, and I wouldn't want to miss out on the fun." Our Erik Wasson got the interview with Lucas: http://bit.ly/1hJTslb
WHAT CANTOR’S FALL MEANS FOR EX-IM REAUTHORIZATION: The Hill’s Vicki Needham has every angle covered:
1.) STENY HOYER optimistic? House Minority Whip Steny Hoyer (D-Md.), the Democrat who worked with Cantor in 2012 on Ex-Im’s reauthorization, said it’s still unclear how Cantor’s loss will impact Ex-Im. Reauthorization expires in September, but this time is facing fierce opposition from the Tea Party, who say it’s “corporate cronyism.”
"There's overwhelming support for that [the bank]. I would hope that Mr. Cantor would pursue that, notwithstanding the election results of last night,” Hoyer told Vicki: http://bit.ly/1lokSfN.
2.) The June 25 Ex-Im hearing may be rescheduled. Cantor was expected to blast Ex-Im at a Financial Services panel he’s chairing later this month. Vicki reports that’s now in flux: “[The hearing], which hasn't been officially announced by the panel, could be shaken up by rapidly approaching leadership elections, several sources said Wednesday.” http://bit.ly/1jle4v5.
3.) Businesses fight back. U.S. Chamber of Commerce CEO Tom Donohue told Bloomberg TV that “the Tea Party had nothing to do with [Cantor’s loss]... You can try to make this the story of the year, but it’s not going to last very long.” Meanwhile, businesses vowed to keep lobbying for reauthorization. More here: http://bit.ly/1jldg9z.
--IMMIGRATION: “House Majority Leader Eric Cantor’s primary election loss added fuel to a heated immigration reform debate in the House Appropriations Committee on Wednesday.” What went down here: http://bit.ly/1leJyrc.
ON-TAP FOR TOMORROW: Jobless claims and retail sales at 8:30 a.m.; Labor Secretary Thomas PerezThomas E. PerezClinton’s top five vice presidential picks Government social programs: Triumph of hope over evidence Labor’s 'wasteful spending and mismanagement” at Workers’ Comp MORE delivers remarks at 9:30 a.m. on the construction industry in Washington; House Financial Services subcommittee hearing on coin production, 11:30 a.m.;
SPARKS FLY AT DONOVAN HEARING, via Mark Felsenthal for Reuters: “President Barack ObamaBarack ObamaFBI found no wrongdoing in Flynn’s calls with Russia: report Repealing the ACA will threaten our mental health CDC cancels major climate change conference MORE's choice to head the White House Office of Management and Budget told Senate panels on Wednesday he would cut budget deficits while funding programs to spur growth but faced criticism of administration management of government.
“‘Over the last five years, the deficit has been cut in half as a share of the economy,’ Obama's nominee, Shaun DonovanShaun DonovanHouse Dems call on OMB to analyze Senate budget plan Overnight Finance: Dems turn up heat on Wells Fargo | New rules for prepaid cards | Justices dig into insider trading law GOP reps warn Obama against quickly finalizing tax rules MORE, said in testimony before the Senate Budget Committee...
“But ranking budget committee Republican Jeff SessionsJeff SessionsDemocrats expected to delay Sessions vote Overnight Regulation: Trump aims to cut regs by 75 percent | Issues federal hiring freeze AT&T beefs up lobbying after merger proposal MORE took Donovan sharply to task for what he said were Obama administration management stumbles across the federal government.
“Sessions said problems at the departments of Veterans Affairs, Health and Human Services and HUD, which Donovan has led since 2009, were of concern.” http://reut.rs/1hPCX7s.
MORE FROM THE HILL’s TEAM:
--Rep. Tom Price keeps his options open: http://bit.ly/UuqxY7.
--Cantor loss inflames immigration hearing: http://bit.ly/1leJyrc.
--White House blames Cantor's loss on 'obstructionism’: http://bit.ly/1koatMn.
--Bitcoins to campaigns?: http://bit.ly/1v05Hwu.
--Spending 'minibus' heads to Senate floor: http://bit.ly/SApfsO.
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