Reid playing for leverage with jobs bill

Reid playing for leverage with jobs bill

Senate Majority Leader Harry ReidHarry Mason ReidDems wonder if Sherrod Brown could be their magic man Nevada New Members 2019 Meet the lawyer Democrats call when it's recount time 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 BrownOn The Money: Senate banking panel showcases 2020 Dems | Koch groups urge Congress not to renew tax breaks | Dow down nearly 400 | Cuomo defends Amazon HQ2 deal Election Countdown: Florida fight ends with Scott, DeSantis wins | Dems see Sunbelt in play for 2020 | Trump to campaign in Mississippi ahead of runoff | GOP wipeout in Orange County | Ortiz Jones concedes in Texas House race The Hill's Morning Report — GOP victorious in Florida while Dems say `Sunbelt strategy’ looks bright for 2020 MORE (Ohio), Debbie StabenowDeborah (Debbie) Ann StabenowSchumer reelected as Senate Democratic Leader Senate GOP readies for leadership reshuffle Battle looms over funding for Trump's border wall MORE (Mich.) and Bob CaseyRobert (Bob) Patrick CaseyThe Hill's Morning Report — Presented by T-Mobile — Democratic race for Speaker turns nasty Pro-Israel organizations should finally seek payback against Iran deal Dems Midterms: The winners and losers 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 SchumerFacebook reeling after damning NYT report Schumer warns Trump to stay out of government funding negotiations Schumer predicts Nelson will 'continue being senator' if 'every vote counted' 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 BoehnerEthics panel reprimands Freedom Caucus chairman over handling of harassment allegations Pelosi allies rage over tactics of opponents Meet the lawyer Democrats call when it's recount time MORE (Ohio), Majority Leader Eric CantorEric Ivan CantorMcCarthy defeats Jordan for minority leader in 159-to-43 vote The Hill's Morning Report — Split decision: Dems take House, GOP retains Senate majority Democrat Spanberger knocks off Brat in Virginia 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 BoehnerEthics panel reprimands Freedom Caucus chairman over handling of harassment allegations Pelosi allies rage over tactics of opponents Meet the lawyer Democrats call when it's recount time 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 BurrOvernight Health Care: Top Trump refugee official taking new HHS job | Tom Price joins new Georgia governor's transition | FDA tobacco crackdown draws ire from the right The Hill's Morning Report — GOP victorious in Florida while Dems say `Sunbelt strategy’ looks bright for 2020 FDA tobacco crackdown draws fire from right MORE (N.C.), Susan CollinsSusan Margaret CollinsMcConnell, Flake clash over protecting Mueller probe Overnight Defense — Presented by Raytheon — Border deployment 'peaked' at 5,800 troops | Trump sanctions 17 Saudis over Khashoggi killing | Senators offer bill to press Trump on Saudis | Paul effort to block Bahrain arms sale fails Senators introduce bill to respond to Khashoggi killing MORE (Maine), Lindsey GrahamLindsey Olin GrahamCIA's report complicates US response to Khashoggi murder Leon Panetta’s nightmare is today's national security crisis The Hill's Morning Report — GOP victorious in Florida while Dems say `Sunbelt strategy’ looks bright for 2020 MORE (S.C.), Jeff SessionsJefferson (Jeff) Beauregard SessionsMueller: Whitaker appointment has 'no effect' on ongoing legal challenge Cummings on 'Adam Schitt': 'Mr. President, please do not do that' Senate Dems sue to block Whitaker from serving as attorney general 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.