The Hill's Morning Report — Trump applauds two-year budget deal with $320 billion spending hike

The Hill's Morning Report — Trump applauds two-year budget deal with $320 billion spending hike
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After weeks of negotiations, the White House and congressional leaders announced a deal that will raise budget caps and the debt ceiling for two years, giving both parties victories and allowing lawmakers to pass a bill before leaving Washington for the August recess.


President TrumpDonald TrumpGraham: 'I could not disagree more' with Trump support of Afghanistan troop withdrawal GOP believes Democrats handing them winning 2022 campaign Former GOP operative installed as NSA top lawyer resigns MORE was the first to announce the accord between the sides, which he touted as “another big victory to our Great Military and Vets,” calling the agreement “a real compromise.” The deal also puts off another government shutdown after the 35-day partial closure earlier this year and the pending risk of default on U.S. debt. 

According to Jordain Carney, funding for the Pentagon — long a priority for GOP defense hawks — is boosted to $738 billion, which doesn’t match the president’s requested total, but is north of what Democrats pushed for. Meanwhile, Democrats won an increase in funding for nondefense spending to $632 billion —- a $27 billion increase over the previous package, something Speaker Nancy PelosiNancy PelosiBiden to hold second meeting with bipartisan lawmakers on infrastructure Appointing a credible, non-partisan Jan. 6 commission should not be difficult Senators in the dark on parliamentarian's decision MORE (D-Calif.) and Senate Minority Leader Charles SchumerChuck Schumer'Building Back Better' requires a new approach to US science and technology Pew poll: 50 percent approve of Democrats in Congress Former state Rep. Vernon Jones launches challenge to Kemp in Georgia MORE (D-N.Y.) were elated with. 

“Democrats are also pleased to have secured robust funding for critical domestic priorities in this agreement,” the Democratic leaders said in a statement. “Democrats have always insisted on parity in increases between defense and non-defense [spending], and we are pleased that our increase in non-defense budget authority exceeds the defense number by $10 billion over the next two years.”  

Pelosi and Schumer added that they have secured more than $100 billion in funding for domestic projects since Trump took office.

Pelosi said in the statement that the House will “move swiftly” on the legislation so it will come up for a vote on the floor “as soon as possible.” Due to the need to have a bill posted for 72 hours, the vote is expected to take place on Friday before the House breaks for a six-week recess. The Senate, which breaks for recess on August 2, will be able to pass the bill next week.  

Senate Majority Leader Mitch McConnellAddison (Mitch) Mitchell McConnellTrump looms over Senate's anti-Asian hate crimes battle Appointing a credible, non-partisan Jan. 6 commission should not be difficult Why President Biden is all-in in infrastructure MORE (R-Ky.) said in a statement that the agreement “secures the resources we need to keep rebuilding our armed forces.” In a statement, House Minority Leader Kevin McCarthyKevin McCarthyKinzinger: Republicans who join 'America First' caucus should be stripped of committees McCarthy: GOP not the party of 'nativist dog whistles' Pro-Trump lawmakers form caucus promoting 'Anglo-Saxon political traditions' MORE (R-Calif.) said, “While this deal is not perfect, compromise is necessary in divided government.”  

Treasury Secretary Steven MnuchinSteven MnuchinDemocrats justified in filibustering GOP, says Schumer Yellen provides signature for paper currency Biden's name will not appear on stimulus checks, White House says MORE, who led negotiations for the White House, had been in constant contact with Pelosi in recent weeks as they worked toward an agreement. Mnuchin had urged congressional leaders to pass a separate debt ceiling bill if they were unable to strike a budget agreement prior to the recess, saying that raising the debt limit would need to be done by early September. 

Andrew Taylor of The Associated Press: Deal sealed on federal budget, ensuring no shutdown, default.

The Washington Post: Trump backs two-year budget deal that boosts spending, suspends debt limit.

Politico’s John Bresnahan, Burgess Everett: Deficit Don? Red ink gushes in Trump era. 

Elsewhere in Congress, the Senate has two high-profile votes set today. Senators are expected to vote to confirm Army Secretary Mark Esper to lead the Pentagon. Esper was nominated after former acting Secretary of Defense Patrick ShanahanPatrick Michael ShanahanOvernight Defense: National Guard boosts DC presence ahead of inauguration | Lawmakers demand probes into troops' role in Capitol riot | Financial disclosures released for Biden Pentagon nominee Biden Pentagon pick could make up to .7M from leaving Raytheon Lloyd Austin can lead — as a civilian MORE’s nomination to serve in the full-time role was withdrawn. The permanent position has been vacant since James MattisJames Norman MattisBiden's is not a leaky ship of state — not yet Rejoining the Iran nuclear deal would save lives of US troops, diplomats The soft but unmatched power of US foreign exchange programs MORE resigned in January. 

The upper chamber also is expected to approve the September 11th Victims Compensation Fund, which passed the House by a vote of 402-12 nearly two weeks ago. The package would reauthorize funding through fiscal 2092, with the Senate expected to vote on amendments by Sen. Mike LeeMichael (Mike) Shumway LeeBiden sparks bipartisan backlash on Afghanistan withdrawal  Hillicon Valley: Biden nominates former NSA deputy director to serve as cyber czar | Apple to send witness to Senate hearing after all | Biden pressed on semiconductor production amid shortage Apple to send witness to Senate hearing after pushback from Klobuchar, Lee MORE (R-Utah) and Sen. Rand PaulRandal (Rand) Howard PaulThe Hill's Morning Report - Presented by Tax March - CDC in limbo on J&J vax verdict; Rep. Brady retiring Anti-Asian hate crimes bill overcomes first Senate hurdle Fauci on Tucker Carlson vaccine comments: 'Typical crazy conspiracy theory' MORE (R-Ky.), who objected to the bill’s passage by unanimous consent last week.  

Looking ahead to after the August recess, House Democrats are expected to release their bill to lower drug prices. According to Peter Sullivan, Wendell Primus, Pelosi's top health care adviser, said House leadership is almost ready to release the proposal but is opting to wait and not give drug companies the opportunity to attack the bill during the congressional recess next month.


“Pharma will argue very hard against drug negotiation of the kind we're talking about,” Primus said at a Brookings Institution event on Monday.



2020 POLITICS: Sen. Elizabeth WarrenElizabeth WarrenWorld passes 3 million coronavirus deaths Poll: 56 percent say wealth tax is part of solution to inequality Democratic senators call on Biden to support waiving vaccine patents MORE (D-Mass.) and Sen. Bernie SandersBernie SandersGOP believes Democrats handing them winning 2022 campaign Senators in the dark on parliamentarian's decision World passes 3 million coronavirus deaths MORE (I-Vt.) will take center stage together for the first time at next Tuesday’s Democratic debate in Detroit, putting two of the party’s brightest liberal stars in the spotlight as they look to stake their claim as the preeminent progressive in the 2020 race. 

As Jonathan Easley and Miranda Green write, while Warren has seen her star shine in the past two months, Sanders’s has dimmed amid questions about whether his time has passed him by after his 2016 bid electrified progressives and as voters survey the 25-candidate field.  

Despite Warren’s rise in the Democratic field and in polls, Sanders has polled better in head-to-head matchups against the president, raising questions in some circles about Warren’s electability in a general election matchup. The next debate could help clarify which candidate will seize the progressive mantle and emerge as the top challenger to former Vice President Joe Biden

The New York Times: Sen. Sherrod BrownSherrod Campbell BrownWorld passes 3 million coronavirus deaths Democratic senators call on Biden to support waiving vaccine patents Big bank CEOS to testify before Congress in May MORE (D-Ohio): The only Democrat in America not running for president. 

The Atlantic: Washington can’t wait for Mueller. Voters have moved on.



> Endorsement watch: Detroit Mayor Mike Duggan (D) endorsed Biden for the 2020 Democratic nomination on Monday just a week out from the second Democratic debate in Michigan’s biggest city. 

Duggan told The Associated Press in an interview that Biden was a “great friend of Detroit” during his time as vice president, noting that he plans to campaign for Biden.  

“He visited multiple times,” Duggan said of Biden. “He cares deeply about the city and auto industry and auto workers. Joe Biden has a whole career of watching out for the working class in this country.”

“I’m going to do whatever he asks me to do,” said Duggan.

Duggan, a second-term mayor who is the city’s first white mayor since the 1970s, endorsed Hillary ClintonHillary Diane Rodham ClintonPelosi on power in DC: 'You have to seize it' Cuba readies for life without Castro Chelsea Clinton: Pics of Trump getting vaccinated would help him 'claim credit' MORE in 2016. 

Along with Duggan, Biden also nabbed another endorsement from a member of the Congressional Black Caucus. Rep. Eddie Bernice JohnsonEddie Bernice JohnsonWhy does Rep. Johnson oppose NASA's commercial human landing system? OVERNIGHT ENERGY: Dakota Access pipeline to remain in operation despite calls for shutdown | Biden hopes to boost climate spending by B | White House budget proposes .4B for environmental justice Congressional proclamation prioritizes a critical societal issue: Lack of women of color in tech MORE (D-Texas) told Politico she is supporting him after witnessing a “firsthand” view of his “commitment to getting real work done on behalf of all Americans.”

The New York Times: Biden unveils criminal justice plan, with a focus on reducing incarceration.  

The Hill: Sen. Kamala HarrisKamala HarrisMedia complicity in rise of the 'zombie president' conspiracy Trump looms over Senate's anti-Asian hate crimes battle DC goes to the dogs — Major and Champ, that is MORE (D-Calif.) unveils plan to revamp infrastructure, ensure access to clean water. 

The Washington Post: “They’re rich and ready”: House Democrats outpace GOP in fundraising by nearly $20 million.  

> Reid Wilson, tithing to the Morning Report, writes, Top GOP outside group One Nation is set to begin spending $1.3 million on behalf of three endangered incumbents, the first sign of where the Republican firewall will be built. One Nation bought mid-August advertising in the Phoenix, Des Moines, Cedar Rapids, Raleigh and Charlotte markets, home to Sens. Martha McSallyMartha Elizabeth McSallyArizona state senator announces bid for Kirkpatrick's seat Democratic Arizona Rep. Ann Kirkpatrick says she won't seek reelection Senate GOP faces retirement brain drain MORE (Ariz.), Joni ErnstJoni Kay ErnstChild care advocates seek to lock down billion in new federal funding GOP senator: Raising corporate taxes is a 'non-starter' Tim Scott to participate in GOP event in Iowa MORE (Iowa) and Thom TillisThomas (Thom) Roland TillisBipartisan Senate proposal would grant million to minority businesses Biden's gun control push poses danger for midterms The Hill's Morning Report - Biden assails 'epidemic' of gun violence amid SC, Texas shootings MORE (N.C.). A spokesman for the group said the ads, to run Aug. 5-25, have not yet been finalized.” 

The Hill: Democrats look to capitalize on turmoil inside NRA.


WHITE HOUSE & ADMINISTRATION: Trump will use a new Department of Homeland Security rule today to implement fast-track deportation authority over immigrants who cross the U.S. border illegally and are caught anywhere in the United States. The rule, set to be published in the Federal Register today, applies “expedited removal” to any illegal crossers who cannot prove to immigration agents that they have been living in the country for two years. Legal experts say it is an expansion of a program that eliminates review by an immigration judge. Previously, only those immigrants caught within 100 miles of the border who had been in the country two weeks or less could be quickly ordered deported (Reuters). The rule would prevent asylum seekers from applying for refuge in the United States before they are deported (The New York Times). 

Separately on Monday, the 9th Circuit Court of Appeals ruled against the Trump administration’s policy allowing for the indefinite detention of certain asylum-seekers, saying a lower court ruling temporarily blocking it can remain in place (The Hill).

> The Hill: Trump answered reporters’ questions for 40 minutes in the Oval Office on Monday, discussing everything from Afghanistan and Iran, to China and Hong Kong. 

> Tech: The president met with chief executives of seven technology companies on Monday and agreed with their request for “timely” licensing decisions from the Commerce Department on blacklisted Chinese tech giant Huawei Technologies, the White House said. Meeting with the president: Sanjay Mehrotra of Micron, Stephen Milligan of Western Digital Corporation, Steven Mollenkopf of Qualcomm, Sundar Pichai of Google, Chuck Robbins of Cisco Systems, Robert Swan of Intel and Hock Tan of Broadcom (Reuters). Tech companies, including semiconductor firms, continue to push the administration to follow through with Trump’s pledge to ease restrictions on selling chips and other technology to Huawei (The New York Times).



> U.S. Army: The Pentagon is mum about an Army mission that has Black Hawk helicopters flying over Washington, D.C., backed by active-duty and reserve soldiers. The mysterious classified operation was disclosed when the Army asked Congress for approval to shift funds to provide an extra $1.55 million for aircraft maintenance, air crews and travel in support of an “emerging classified flight mission” (Bloomberg).

> Food stamps: Trump has argued that many Americans now using the Supplemental Nutrition Assistance Program do not need it given the strong economy and low unemployment, and should be removed as a way to save taxpayers as much as $15 billion. The administration today will propose a rule to tighten food stamp restrictions that would cut about 3.1 million people from the program, Department of Agriculture officials said. The change would save the government about $2.5 billion a year by removing recipients from SNAP (Reuters).

> Commerce Department: The rank-and-file Commerce Department, led by 81-year-old Wilbur RossWilbur Louis RossFormer Trump officials find tough job market On The Money: Retail sales drop in latest sign of weakening economy | Fast-food workers strike for minimum wage | US officials raise concerns over Mexico's handling of energy permits US officials raise concerns over Mexico's handling of energy permits MORE, is largely disconnected from the secretary, reports Politico, citing Ross’s eagerness to hover near the White House to curry favor with Trump, and department accounts of the secretary’s described habit of dozing off in meetings.

The Morning Report is created by journalists Alexis Simendinger and Al Weaver. We want to hear from you! Email: asimendinger@thehill.com and aweaver@thehill.com. We invite you to share The Hill’s reporting and newsletters, and encourage others to SUBSCRIBE!



Mueller’s testimony seems destined to disappoint. But Democrats could make it worthwhile, by Ronald A. Klain, contributing columnist, The Washington Post. https://wapo.st/2M6fVN6 

The bond market agrees with Elizabeth Warren — up to a point, by Desmond Lachman of the American Enterprise Institute, opinion contributor, The Hill. https://bit.ly/2SxEkfr


Hill.TV’s “Rising” at 9 a.m. ET features Péter Szijjártó, minister of foreign affairs and trade for Hungary; and Randi Weingarten, president of the American Federation of Teachers (AFT), discussing AFT’s lawsuit against Education Secretary Betsy DeVosBetsy DeVosHeadhunters having hard time finding jobs for former Trump officials: report Education Department moves to reverse Trump-era rules on campus sexual misconduct Watchdog says DeVos made nine figures in outside income during Trump years MORE. Find Hill.TV programming at http://thehill.com/hilltv or on YouTube at 10 a.m.

The House meets at noon.

The Senate convenes at 10 a.m. to consider an extension of the authorization of the September 11th Victim Compensation Fund. FBI Director Christopher Wray testifies before the Senate Judiciary Committee at 10 a.m.

The president speaks at 11 a.m. to the Turning Point USA’s Teen Student Action Summit at the Marriott Marquis in Washington. Trump will have lunch with Secretary of State Mike PompeoMike PompeoPompeo violated ethics rules, State Dept. watchdog finds Why the US needs to clear the way for international justice Tim Scott to participate in GOP event in Iowa MORE at 12:30 p.m. He will meet with GOP senators at the White House in the afternoon to discuss possible U.S. sanctions on Turkey

Vice President Pence attends the Republican Governors Association executive roundtable at 8:15 a.m. in Aspen, Colo. Pence later speaks to employees near Des Moines, Iowa, at the manufacturing company Accumold at 1:30 p.m. about the U.S.-Mexico-Canada Agreement. He returns to Washington this evening.

Attorney General William BarrBill BarrGarland rescinds Trump-era memo curtailing consent decrees Boehner: Trump 'stepped all over their loyalty' by lying to followers Dominion: Ex-Michigan state senator 'sowing discord in our democracy' with election fraud claims MORE will speak at the International Conference on Cyber Security at Fordham School of Law in New York at 9 a.m.

Economic indicators: The National Association of Realtors will release information at 10 a.m. about existing home sales in June.

The Hill invites you to two live events: On Wednesday, join the third annual Latina Leaders Summit at the Conrad Washington, D.C., with leaders from across the country, including Rep. Nanette Diaz Barragán (D-Calif.), Del. Jenniffer González-Colón (R-Puerto Rico) and Rep. Grace NapolitanoGraciela (Grace) Flores NapolitanoTrump signs bill authorizing memorial to fallen journalists We can't ignore COVID-19's impact on youth mental health Hispanic Caucus asks for Department of Labor meeting on COVID in meatpacking plants MORE (D-Calif.). They’ll discuss paths to elective office and the next generation of Latina leaders. Information is HERE. … On Thursday, The Hill presents “Policy Prescriptions: Lowering Drug Prices” at 1777 F Street NW, Washington, D.C., with Sens. Mike BraunMichael BraunGOP acknowledges struggle to bring down Biden Serious about climate change? Get serious about agriculture Exclusive: GOP senators seek FBI investigation into Biden Pentagon nominee MORE (R-Ind.) and Tammy BaldwinTammy Suzanne BaldwinWorld passes 3 million coronavirus deaths Democratic senators call on Biden to support waiving vaccine patents Mary Trump joining group that supports LGBTQ+ female candidates MORE (D-Wis.), who will discuss how to lower patient drug prices. Sign up HERE.


Iran: On Monday, Great Britain called for a European-led naval mission to ensure safe shipping through the Strait of Hormuz, days after Iran seized a British-flagged tanker in what London described as an act of “state piracy” (Reuters). In the White House on Monday, Trump said he would wait to see what’s next with Tehran. We are ready for the absolute worst and we are ready for [some] sense, too. … Frankly, it’s getting harder for me to want to make a deal with Iran because they’ve behaved very badly” (The Hill). Pompeo, during an interview with WFTV in Florida on Monday, said, “What we want is Iran to behave like a normal nation, like Norway, like any country that doesn’t conduct a terror campaign around the world.”

Opioid crisis: The Washington Post — which on Sunday published a massive national database mapping the flow between 2006 and 2012 of opioids into pharmacies, towns and states — described national responses to its extensive report and the continuing crisis. The report used federal data obtained by court order to track the shipment of 76 billion pills. In that seven-year period, 100,000 people died from overdoses while seeking relief from pain (The Washington Post). 

Equifax settlement: Credit-reporting company Equifax Inc. will pay up to $700 million to settle claims it broke the law with a massive 2017 data breach and to repay harmed consumers in a landmark settlement that could spur new consumer data rules. It closes multiple probes into Equifax by the Federal Trade Commission, the Consumer Financial Protection Bureau and nearly all state attorneys general, and it resolves class-action lawsuits pending against the company (Reuters). Lawmakers and industry officials are critical of the largest-ever settlement for a data breach (The Hill).



And finally  Exactly 52 years ago in Puerto Rico, voters cast ballots in their first plebiscite and overwhelmingly affirmed the continuation of commonwealth status for the island. On Monday, the people of Puerto Rico held the largest demonstration seen on the island in nearly two decades, demanding the resignation of Gov. Ricardo Rosselló in a crisis sparked by offensive, obscenity-laden chat messages between the governor and his advisers (The Associated Press).

Former New York City Council Speaker Melissa Mark-Viverito (D), who was mentioned in the chat messages, told CNN that Rosselló’s words were “an attack on all women” (The Hill).

Trump, asked by reporters about Monday’s massive protests in Puerto Rico, called Rosselló “a terrible governor” and added that San Juan Mayor Carmen Yulín Cruz is “even worse … a horror show. She’s incompetent.”