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Presented by PhRMA: Playbook is POLITICO's must-read briefing on what's driving the day in Washington Sep 14, 2018 View in browser
By Jake Sherman, Anna Palmer, Daniel Lippman and Eli Okun

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PAUL MANAFORT entered into a plea agreement with the special counsel, which includes a cooperation agreement with ROBERT MUELLER.

-- THE DETAILS: "Manafort to cooperate with Mueller as part of plea deal," by Josh Gerstein and Darren Samuelsohn: "The deal dismisses deadlocked charges against Manafort from an earlier trial, but only after 'successful cooperation' with Mueller's probe ...

"The agreement also calls for a 10-year cap on how long Manafort will be sent to prison, and for Manafort to serve time from his separate Virginia and Washington cases concurrently. But it will not release Manafort from jail, where he has been held since Mueller's team added witness tampering charges during the run-up to the longtime lobbyist's trial. ...

"Legal experts quickly spun the deal as a win for all the parties involved. Manafort gets a potentially shorter sentence and lessens his legal bills. Trump avoids several weeks of bad headlines ahead of the midterm elections about his corrupt former campaign aide. And Mueller ... gets to show yet again that his charges are not fabricated and can now divert resources to other elements of his Russia probe. But the prospect of Manafort's cooperation with Mueller throws into doubt how much of a win the deal could be for Trump." POLITICO ... The charging document ... FAQ from Josh and Darren

-- FROM THE SCENE, from Darren: "Inside the courtroom after the hearing ended, [Manafort attorney Kevin] Downing and his fellow defense attorneys shook hands with several members of Mueller's team, including [Andrew] Weissmann and [Greg] Andres. Prosecutors on the special counsel team hugged each other. Kathleen Manafort and Manafort spokesman Jason Maloni looked on at the scene.

"After conferring with his colleagues in the courtroom cafeteria out of earshot of reporters, Downing made his way out of the building and delivered a brief statement outside the courtroom before television cameras.

"'Mr. Manafort has accepted responsibility,' Downing said. 'He wanted to make sure his family was able to remain safe and live a good life. He's accepted responsibility and this is for conduct that leads back many years, and everybody should remember that.'

"Manafort has already begun cooperating with Mueller, Downing later told POLITICO as the chaotic scene unfolding outside the courthouse continued down 3rd Street, with the lawyer trailed by reporters and dozens of photographers and television cameramen, including one who tumbled onto the street while walking backward to capture the lawyer's departure and another who lost a shoe but continued taking pictures. Downing said Manafort had 'agreed to fully cooperate' and added that the document approved in court Friday spells out how the arrangement would work."

FOR CONTEXT -- KYLE CHENEY (@kyledcheney): "Mueller track record: MANAFORT: Pleaded guilty ... FLYNN: Pleaded guilty ... GATES: Pleaded guilty ... PAPADOPOULOS: Pleaded guilty. ... PINEDO: Pleaded guilty ... VAN DER ZWAAN: Pleaded guilty ... KILIMNIK: Charged ... 25 RUSSIANS: Charged ... 3 COMPANIES: Charged ... Played role in pleas of: COHEN, PATTEN."

FLASHBACK -- @realDonaldTrump on Aug. 22: "I feel very badly for Paul Manafort and his wonderful family. 'Justice' took a 12 year old tax case, among other things, applied tremendous pressure on him and, unlike Michael Cohen, he refused to 'break' -- make up stories in order to get a 'deal.' Such respect for a brave man!" (h/t Jonathan Lemire)

BOMBSHELL ... THE NEW YORKER'S RONAN FARROW and JANE MAYER, "A Sexual Misconduct Allegation Against the Supreme Court Nominee Brett Kavanaugh Stirs Tension Among Democrats in Congress": "The allegation dates back to the early nineteen-eighties, when Kavanaugh was a high-school student at Georgetown Preparatory School, in Bethesda, Maryland, and the woman attended a nearby high school.

"In the letter, the woman alleged that, during an encounter at a party, Kavanaugh held her down, and that he attempted to force himself on her. She claimed in the letter that Kavanaugh and a classmate of his, both of whom had been drinking, turned up music that was playing in the room to conceal the sound of her protests, and that Kavanaugh covered her mouth with his hand. She was able to free herself.

"In a statement, Kavanaugh said, 'I categorically and unequivocally deny this allegation. I did not do this back in high school or at any time.' Kavanaugh's classmate said of the woman's allegation, 'I have no recollection of that.' The woman declined a request for an interview. ...

"[Dianne] Feinstein's decision to handle the matter in her own office, without notifying other members of the Senate Judiciary Committee, stirred concern among her Democratic colleagues. ...

"Sources familiar with Feinstein's decision suggested that she was acting out of concern for the privacy of the accuser, knowing that the woman would be subject to fierce partisan attacks if she came forward. Feinstein also acted out of a sense that Democrats would be better off focussing on legal, rather than personal, issues in their questioning of Kavanaugh.

"Sources who worked for other members of the Judiciary Committee said that they respected the need to protect the woman's privacy, but that they didn't understand why Feinstein had resisted answering legitimate questions about the allegation." The New Yorker

-- SENATE JUDICIARY CHAIRMAN CHUCK GRASSLEY (R-IOWA) immediately released a letter from 65 women, saying, "We are women who have known Brett Kavanaugh for more than 35 years and knew him while he attended high school between 1979 and 1983. For the entire time we have known Brett Kavanaugh, he has behaved honorably and treated women with respect. We strongly believe it is important to convey this information to the Committee at this time." The letter

-- OUR SENATE MAN ... BURGESS EVERETT (@burgessev): "Bottom line: Republicans will go forward with the nomination unless Collins or Murkowski raise concerns about the Kavanaugh letter, per sources."

A message from PhRMA:

What if a couple of small fixes could protect seniors in the donut hole and save them money on out-of-pocket costs? They can. And Congress can make it happen. Congress should act now to reduce out-of-pocket costs for seniors and leave them better off than the BBA changes alone. Learn more.

Good Friday afternoon. HURRICANE FLORENCE HITS -- "Slow-moving Florence batters NC with heavy flooding, power outages," by The (Durham) Herald-Sun's Jane Stancill, Lynn Bonner and Tammy Grubb: "The storm made landfall at Wrightsville Beach at 7:15 a.m., with maximum sustained winds of 90 mph, according to the National Hurricane Center. But Florence, a Category 1 hurricane when it hit, already had pounded coastal areas for hours.

"The enormous storm crept at a 6 mph pace, making it clear that the trouble was just beginning. By 5 a.m., about 200 people had been rescued from flooded homes in New Bern, where the National Weather Service reported 10 feet of inundation. People were stuck in their cars, attics and rooftops, waiting for rescuers in boats." The Herald-Sun

-- "Potential Insurance Bill From Hurricane Florence Could Take Toll on Wallets Far From North Carolina's Coast," by ProPublica's Abrahm Lustgarten and Talia Buford: "With Hurricane Florence headed straight for North Carolina, the state faces not only a natural disaster but a financial reckoning." ProPublica

WHAT'S ON THE PRESIDENT'S MIND -- @realDonaldTrump at 8:19 a.m.: "Incredible job being done by FEMA, First Responders, Law Enforcement and all. Thank you!"

ABOUT THOSE HURRICANE MARIA TWEETS -- "Maria set off months of pain, death in Puerto Rico," by AP's Michael Weissenstein, Quartz's Ana Campoy and the Center for Investigative Journalism's Omaya Sosa: "A year after Maria roared across the Caribbean, reporters ... have put together the most detailed portrait yet of the agonizing final days of victims of the storm, interviewing 204 families of the dead and reviewing accounts of 283 more to tell the stories of heretofore anonymous victims. ...

"[T]he joint investigation reflects how Puerto Rico's most vulnerable fell victim to dire conditions created by the storms. ... [C]ritics say many could have been saved by better preparation and emergency response." AP ... The victims database

BREAKING -- "Trump Wants $200 Billion in China Tariffs Despite Talks, Sources Say," by Bloomberg's Jennifer Jacobs, Saleha Mohsin and Jenny Leonard: "But announcement of the new round of tariffs has been delayed as the administration considers revisions based on concerns raised in public comments." Bloomberg

IN OTHER TRADE WARS -- BLOOMBERG'S ERIK WASSON (@elwasson): "Pelosi makes clear that she wants new NAFTA to have Canada in it. Approval of trade deal could be in her hands next year if Dems flip House."

TV TONIGHT ... Bob Costa sits down for a one-on-one with Bob Woodward on a special edition of PBS' "Washington Week" at 8 p.m.

-- INTERVIEW with THE GUARDIAN'S DAVID SMITH: "Bob Woodward: 'Too many people are emotionally unhinged about Trump'"

SECRETARY OF STATE MIKE POMPEO will talk to the press at 3:30 p.m. today.

NORTH KOREA WATCH -- SUSAN GLASSER in The New Yorker, "'None of Them Is Where the President Is': It's Trump vs. Trumpworld Over North Korea": "I spoke with a half-dozen former U.S. government officials and Allied diplomats who have been briefed by Trump Administration officials ... All acknowledged what one called the 'frustratingly slow' progress with the post-Singapore discussions, and described a Trump Administration whose top officials remain deeply skeptical of the course being pursued by the President, with even the usual bureaucratic turf battles being subordinated to the shared concern over Trump's very public embrace of Kim [Jong Un]. ...

"The infighting is not lost on Kim, who now appears to be openly trying to divide Trump from his team, and his government's statements have increasingly started to accuse Trump advisers, such as Secretary of State Mike Pompeo, whom Trump has designated as his lead negotiator, of trying to 'thwart' Trump's wishes." The New Yorker

-- WSJ'S GORDON LUBOLD and IAN TALLEY: "New U.S.-Led Coalition to Track Illicit Fuel Shipments to North Korea"

-- AP'S ERIC TALMADGE in PYONGYANG: "N. Korea calls Sony, Wannacry hack charges smear campaign": "[A] North Korean Foreign Ministry official said that the person named by U.S. is a 'non-entity,' and warned that the allegations, which he called a smear campaign, could harm talks between the two countries following the summit between President Donald Trump and North Korean leader Kim Jong Un." AP

-- NYT'S CHOE SANG-HUN in SEOUL: "North and South Korea Open Full-Time Liaison Office at Border"

ON THE WORLD STAGE -- POLITICO EUROPE'S DAVID HERSZENHORN and BJARKE SMITH-MILLER, "Europe looks to thwart Trump's Iran sanctions": "The EU's biggest economic powers are planning to create a 'special purpose' financial company to thwart U.S. President Donald Trump's sanctions and help Iran to continue to sell oil in Europe. ...

"Word of the European plan to prop up Iran's oil industry is certain to further damage the already badly-strained transatlantic relationship. ... The special purpose vehicle would keep the money for the transactions within the EU, and outside the reach of U.S. control over global money-transfer systems." POLITICO Europe

-- TOP-ED -- DAVID WADE in POLITICO Magazine, "Why Is Trump's State Department Stealing Ideas from Old Spice Commercials?: Mike Pompeo's #Swagger hashtag diplomacy is an international embarrassment." POLITICO

2018 WATCH ...

-- ARKANSAS DEMOCRAT-GAZETTE'S HUNTER FIELD: "Vice President Mike Pence to stump for U.S. Rep. French Hill in Little Rock; Tucker says rival vulnerable": "Vice President Mike Pence will campaign in Little Rock next week for U.S. Rep. French Hill, R-Ark., who political science experts say faces the toughest re-election bid among Arkansas' four Republican congressmen.

"Pence, a Republican from Indiana, is set to appear at a rally supporting Hill on Sept. 21 at the Statehouse Convention Center. The rally will be free to the public, but those hoping to attend must RSVP, state Republican Party Chairman Doyle Webb said in an email Thursday to supporters." Democrat-Gazette ... This is an R+7 that Trump won by 10 points. Hill won in 2016 by 22 points.

-- BALLOT ACCESS NEWS' RICHARD WINGER: "Democratic Party Has More U.S. House Candidates on November Ballot than Any Party in Previous U.S. History"

-- "With GOP concerns about losing the House mounting, Trump drops talk of 'Red Wave,'" by Yahoo's Jon Ward: "President Trump has shifted his message in response to warnings from Republican operatives that his rhetoric could hurt the GOP by dampening its voter turnout.

"His refusal to talk about the possibility of Democrats winning was making Republican voters complacent, and could end up helping Democrats retake the House, operatives warned." Yahoo

REPLACING MCGAHN -- DARREN SAMUELSOHN, "Trump's search for a top scandal fighter pits resume against loyalty": "The obvious candidate is Emmet Flood, an elite Washington lawyer respected by members of both parties for his expertise in handling Capitol Hill scrutiny and someone who could help stock the depleted ranks of the counsel's office with top legal talent. Four sources close to the White House, including two former administration officials, said they believe Flood will get the job.

"Still, some members of the president's inner circle - including his daughter Ivanka and son-in-law, Jared Kushner, are urging Trump to consider a more reliable political loyalist, even if that means settling for a lawyer with a less formidable reputation in Washington legal circles." POLITICO

AFTERNOON READ ... "How Obama Made It Easier for Trump to Launch a Nuke," by Marc Ambinder in POLITICO Magazine: "Thanks to upgrades to our nuclear systems under President Barack Obama, and recent shifts in Pentagon protocol, it has never been easier for an American president to launch a tactical nuclear attack anywhere on the globe. We know that our current nuclear war plans ... specifically envision a scenario where the president orders a limited nuclear strike to deter proliferators of weapons of mass destruction. Sarin gas qualifies. So, the Syria crisis is one of the scenarios in which that might happen." POLITICO Magazine

PLAYBOOK METRO SECTION -- "The Inn at Little Washington earns its third Michelin star, a first for the D.C. region," by WaPo's Maura Judkis: "José Andrés's Minibar and Aaron Silverman's Pineapple and Pearls kept their two-star ratings. There were two new additions to the one-star list: Chef Ryan Ratino's Bresca and Robert Wiedmaier's Siren ... [W]ith its first three-star restaurant, 'it's clear that Washington now has joined the ranks of the great gastronomic capitals of the world,' said Michael Ellis, the outgoing international director for the Michelin Guides." WaPo

MEDIAWATCH -- Lauren Dezenski is joining CNN in Washington to co-author The Point's nightly newsletter. She is currently POLITICO's Massachusetts Playbook author in Boston. ... Blair Guild is joining WaPo as a breaking news and viral video editor. She was previously an associate video producer and politics reporter at CBS.

SPOTTED: Rep. Stephen Lynch (D-Mass.) and recently defeated Rep. Mike Capuano (D-Mass.) walking through Terminal B at DCA heading out of town yesterday afternoon. Pic ... Transportation Secretary Elaine Chao this morning on the Acela to New York City, with her security detail.

SPOTTED at the Committee for a Responsible Federal Budget's annual dinner last night at the Liaison Hotel: HUD Secretary Ben Carson, Leon Panetta, Mitch Daniels, Sen. Todd Young (R-Ind.), Maya MacGuineas, Doug Elmendorf and Major Garrett.

WELCOME TO THE WORLD -- Heather McGhee, the immediate past president of Demos and now its distinguished fellow, and Cassim Shepard, an adjunct assistant professor at the Columbia University Graduate School of Architecture, Planning and Preservation, on Monday welcomed a son, Riaz Shah Hassan Shepard-McGhee.

ENGAGED -- Capt. Andrew J. Cote, the Marine security force commander at the White House Communications Agency and a social aide at the White House, proposed to Bonnie Butler, a managing strategy consultant at IBM. They met in Logan Circle and got engaged in Park City, Utah. Pic

BONUS BIRTHDAY: Amy Kauffman (hubby tip: Ken Weinstein)

A message from PhRMA:

In 2020, a Part D Cliff looms for seniors as the threshold for catastrophic coverage will suddenly expand by $1,250, quickly raising out-of-pocket costs for the most vulnerable seniors. At the same time, changes made in the Bipartisan Budget Act (BBA) earlier this year leave seniors in the Part D donut hole paying at least 5 times more than insurers for the brand medicines they rely on. But Congress can protect the most vulnerable seniors and address both of these problems right now by fixing the Cliff and restoring balance to payment responsibility in the donut hole. Together these two policy fixes reduce out-of-pocket costs for seniors with high drug spending more than the BBA changes
alone, leaving them better off and, in 2020, saving them up to 7% on their out-of-pocket costs. Learn more.

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