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Presented by the National Retail Federation: Playbook is POLITICO's must-read briefing on what's driving the day Jan 16, 2019 View in browser
By Jake Sherman, Anna Palmer and Daniel Lippman

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DRIVING THE DAY
PELOSI'S REVENGE ... HEATHER CAYGLE, RACHAEL BADE and JOHN BRESNAHAN: "House Speaker Nancy Pelosi exacted revenge against one of her most outspoken detractors Tuesday night, blocking Rep. Kathleen Rice from landing a seat on the high-profile House Judiciary Committee.

"Pelosi lobbied for other members to join the panel over Rice, leaving the third-term New York Democrat off a list of her preferred members for the committee during a tense closed-door meeting Tuesday night, according to multiple sources. The effort came despite a full-court push from the New York delegation to secure a spot for Rice, a former prosecutor, on the panel that oversees everything from impeachment to guns to immigration. ...

"'It was taken to a recorded vote and she lost,' said a Democratic aide who was in the room. 'Not every member gets what they want.'" POLITICO

-- REPUBLICANS wish their recent speakers were as ruthless as Pelosi is. She may take some knocks with the New York delegation, but she showed that going against her has consequences.

Good Wednesday morning. SPOTTED: Attorney general nominee Bill Barr at Charlie Palmer on Tuesday night after his Senate confirmation hearing. At the same time, there was a March for our Lives reception, where Speaker Nancy Pelosi (D-Calif.) and Rep. Ted Deutch (D-Fla.) were spotted. Pic of Barr dining

SHUTDOWN ... DAY 26 ... THE PROBLEM SOLVERS CAUCUS -- a bipartisan group of House members -- is going to the White House today at 11:30 a.m. for a meeting with PRESIDENT DONALD TRUMP. They are meeting in the Situation Room, far away from everyone else in the White House. Republicans and Democrats are expected to attend this meeting. (Heather Caygle and Jake tweeted about this last night.)

-- HOUSE MAJORITY LEADER STENY HOYER (D-MD.) was chatting on the floor yesterday with Rep. Josh Gottheimer, the second-term New Jersey Democrat who is one of the leaders of the group.

AGAIN, WE DON'T EXPECT much from a meeting of this nature. The president will be meeting another group of people that is not empowered to make a deal. In fact, the Problem Solvers Caucus is probably the group least representative of where most Republicans and Democrats are at the moment.

BURGESS EVERETT with another good reminder: "'The gang concept almost never works': Senators struggle to end shutdown": "A bipartisan group of senators is trying to set up a gang to end the government shutdown. But Senate leaders might as well be an anti-gang task force.

"About a dozen Democratic and Republican senators are beginning member-to-member and staff level conversations on how to break the deadlock between President Donald Trump and Democratic leaders, who currently aren't even talking about how to reopen the government. But few senators believe the group has a real shot at success, given that its chief goal is at odds with Trump's hard-line stance. And party leaders aren't offering much encouragement.

"The new gang's hope is that the president can be persuaded to reopen the government and take up an immigration package that would enhance border security and offer protections for young immigrants and people under Temporary Protected Status." POLITICO

JARED WATCH -- @maggieNYT: "Recurring theme from sources over last two days: Kushner is the de facto chief of staff, whether people realize it or not."

A message from the National Retail Federation:

Who is actually paying the tariffs? Anyone know? Anyone? Tariffs imposed by Washington are paid by American businesses and consumers - not foreign countries. Scroll down to learn more. www.tariffsarebad.com

THE IMPACT ...

-- NYT'S JIM TANKERSLEY: "Shutdown's Economic Damage Starts to Pile Up, Threatening an End to Growth": "The partial government shutdown is inflicting far greater damage on the United States economy than previously estimated, the White House acknowledged on Tuesday, as President Trump's economists doubled projections of how much economic growth is being lost each week the standoff with Democrats continues. The revised estimates from the Council of Economic Advisers show that the shutdown, now in its fourth week, is beginning to have real economic consequences." NYT

-- WAPO'S ERICA WERNER: "Trump administration calling nearly 50,000 back to work, unpaid, as shutdown drags on": "The Trump administration on Tuesday said it has called back tens of thousands of federal workers to fulfill key government tasks, including disbursing tax refunds, overseeing flight safety and inspecting the nation's food and drug supply, as it seeks to blunt the impact of the longest government shutdown in U.S. history.

"The nearly 50,000 furloughed federal employees are being brought back to work without pay - part of a group of about 800,000 federal workers who are not receiving paychecks during the shutdown, which is affecting dozens of federal agencies large and small." WaPo ... POLITICO: "Shutdown shrinks as thousands more employees called in to work without pay"

2020 WATCH -- ELENA SCHNEIDER: "Gillibrand's 2020 path: 'Women are pissed off and they're fired up'": "Soon after Kathleen Matthews jumped into a crowded Democratic congressional primary in Maryland in 2016, she received an unsolicited check. It was from Sen. Kirsten Gillibrand's political group, weighing in early on Matthews' behalf.

"Gillibrand's support for hundreds of female candidates around the country has been a hallmark of her political rise. Now, more than any candidate for president ever has, she's putting gender at the heart of her pitch to voters - a strategy that could bolster her cause with a sizable slice of the Democratic base and help her stand out in a sprawling primary.

"But she begins the campaign behind several other prominent women - and men - seeking the same bloc of support, and she will face strong pressure to construct a winning coalition including all stripes of voters." POLITICO ... Gillibrand's interview with Stephen Colbert last night

-- "Sherrod Brown to tour Iowa, other early 2020 states," by Daniel Strauss

-- "Warren stocks campaign with top party talent," by Natasha Korecki and Alex Thompson

MARC CAPUTO and DANIEL STRAUSS: "Abrams and Gillum target Trump in 2020": "Stacey Abrams and Andrew Gillum - two of the Democratic Party's breakout candidates of 2018, despite losing their elections for governor of Georgia and Florida - are looking to parlay their near-success into the defeat of Donald Trump in 2020.

"The pair of young, progressive African-American pols amassed so much political fame that they're a must-call for the growing roster of likely Democratic presidential contenders. They're also on some early and unofficial lists as possible vice-presidential running mates.

"The White House hopefuls don't just crave an endorsement from Abrams or Gillum. Each boasts valuable donor and volunteer lists, in the Southeast's two biggest states that, if won next year, would almost guarantee a Democratic White House." POLITICO

-- WEDNESDAY LISTEN: For more on Stacey Abrams, check out Anna's full conversation on the Women Rule podcast, where they talk about everything from how Abrams is deciding whether to run for Senate to how she sees Georgia as the pathway for Democrats in 2020. Listen

JOHN BRESNAHAN and SARAH FERRIS, "How Steve King finally went too far for House Republicans": "Everyone knew Steve King's history of racist rhetoric. It had gone on for more than a decade. But House Republicans did something about it this week, as Democrats moved to denounce King on the House floor. After years of tolerating King's offensive remarks on race, minority groups and immigrants, House GOP leaders reached their breaking point - a New York Times interview in which the Iowa Republican defended white nationalism and white supremacy.

"While the King drama played out over the past few days, some Republicans seized on the incident to reorient the party's position - and maybe more importantly, its language - on race. Yet with President Donald Trump regularly stoking racial division from the Oval Office, it's not clear the action against King will amount to anything meaningful for the GOP. There are numerous House Republicans who have said the party needs to learn the painful message sent by voters in November: The GOP must change, now. Exiling King seemed like a good place to start for some rank-and-file lawmakers." POLITICO

-- THE DES MOINES REGISTER EDITORIAL BOARD: "The Register's editorial: Steve King should resign for the good of Iowa"

-- @burgessev: "Asked why he condemned Steve King and not Donald Trump over comments on race, McConnell says he's made it a practice not to comment on 'random' comments by the president."

-- NYT'S JONATHAN MARTIN on A1: "So why would Republicans wait until Mr. King flatly defended white supremacy to punish him? ... [Kevin] McCarthy shot back: 'Have I been leader for years?' He said he had been the top House Republican for only 'a short amount of time' and was now 'in a position to take action.'" NYT

COMING ATTRACTIONS -- "Acting Attorney General Whitaker to testify before Congress in February," by Rachael Bade: "Embattled acting Attorney General Matthew Whitaker will testify before Congress on Feb. 8, setting up dual blockbuster hearings that week as House Democrats launch their much-awaited oversight into Donald Trump's presidency.

"The House Judiciary Committee announced Tuesday that Whitaker will appear one day after Trump's former lawyer, Michael Cohen, testifies before the House Oversight Committee. The two hearings, both made-for-TV moments, will almost certainly create a headache for the president as special counsel Robert Mueller's probe into his 2016 presidential campaign enters its 20th month." POLITICO

-- ABC'S ALI DUKAKIS, "Mueller plows ahead, issuing more subpoenas to associates of conservative commentator"

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THE JUICE ...

-- FIRST IN PLAYBOOK: KATE WINKLER KEATING, who was chief of staff to former House Democratic Caucus Chairman Joe Crowley, is joining Duberstein Group as VP. Keating, who spent more than 10 years on Capitol Hill, also worked for Reps. Allyson Schwartz (D-Pa.) and Nita Lowey (D-N.Y.).

TRUMP'S WEDNESDAY -- The president will meet with the Problem Solvers Caucus at 11:30 a.m. He will have lunch with Secretary of State Mike Pompeo at 1 p.m. At 2:15 p.m., Trump will sign the "Government Employee Fair Treatment Act of 2019" in the Oval Office.
PLAYBOOK READS


PHOTO DU JOUR: Attorney general nominee William Barr is sworn in at his Senate Judiciary Committee confirmation hearing Tuesday. | Alex Wong/Pool Photo via AP Photo

ZACH WARMBRODT and HEATHER CAYGLE: "Waters' big test: Keeping peace with Ocasio-Cortez and moderates": "In addition to Ocasio-Cortez, attention-grabbing freshmen Reps. Katie Porter (D-Calif.), Rashida Tlaib (D-Mich.) and Ayanna Pressley (D-Mass.) are all expected to land spots on the committee, which oversees Wall Street and the nation's housing market.

"The addition of lawmakers who shunned corporate campaign donations and have taken on their party's establishment is a major victory for progressives looking to counter the influence of more business-friendly Democrats." POLITICO

HMM -- "Beto O'Rourke's immigration plan: No wall but no specifics," by WaPo's Jenna Johnson in El Paso: "Throughout the two-hour interview - which was often interrupted by bystanders urging him to run for president - O'Rourke boomeranged between a bright-eyed hope that the United States will soon dramatically change its approach to a whole host of issues and a dismal suspicion that the country is now incapable of implementing sweeping change. When asked which it is, O'Rourke paused.

"'I'm hesitant to answer it because I really feel like it deserves its due, and I don't want to give you a - actually, just selfishly, I don't want a sound bite of it reported, but, yeah, I think that's the question of the moment: Does this still work?' O'Rourke said. 'Can an empire like ours with military presence in over 170 countries around the globe, with trading relationships ... and security agreements in every continent, can it still be managed by the same principles that were set down 230-plus years ago?' O'Rourke doesn't yet know the answer, but he's ready to discuss it." WaPo

K STREET FILES -- "Joe Lieberman Called Chinese Telecom Giant ZTE a National Security Threat. Now He's a Lobbyist for It," by The Daily Beast's Betsy Woodruff

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FOR YOUR RADAR -- "Republicans Break Ranks Over Move to Lift Sanctions on Russian Oligarch's Firms," by NYT's Ken Vogel: "The 11 Republican votes allowed Senate Democrats to advance a measure that would reverse a decision last month by the Treasury Department to lift sanctions that it imposed last year on companies controlled by the oligarch, Oleg V. Deripaska, including the aluminum giant Rusal." NYT

SECOND LADY WATCH -- "Second lady Karen Pence to teach art at a Virginia elementary school," by WaPo's Emily Heil: "Karen Pence, the wife of Vice President Pence, is going back to her roots: She's taken a part-time gig teaching art at a local Christian elementary school, her office announced Tuesday. Karen Pence, a watercolor artist and longtime teacher, will lead students twice a week at the Immanuel Christian School in Northern Virginia, where she taught while her husband served in the House." WaPo

THE AGENDA -- Check out POLITICO's latest issue of the Agenda, which focuses on rethinking the school-skills-jobs pipeline and disruption in higher education in America. POLITICO
PLAYBOOKERS
TRANSITION -- Thomas Gensemer, former chief strategy officer at Burson-Marsteller, is joining BlueLabs Analytics Inc. as CEO.

BIRTHWEEK (was yesterday): David Zaslav, president and CEO of Discovery Inc., turned 59 ... Bruce Schneier turned 56

BIRTHDAY OF THE DAY: Matt Herrick, managing director of communications at the Rockefeller Foundation and an Obama USDA alum, is 42. How he thinks the Trump presidency is going: "My career focuses on ending hunger, poverty, and vulnerability in the U.S. and around the world. Decisions by the administration to slash funding and end programs that deliver these life-saving services make it difficult and more dangerous for development workers, diplomats, and civil society groups to open pathways of opportunity for people around the world." Playbook Plus Q&A

BIRTHDAYS: Labor Secretary Alexander Acosta is 5-0 ... Bracewell's Frank Maisano, also a GWU professor ... Rob Goad of the White House ... Reagan Brown ... Clay Dumas of Lowercase Capital ... Maria Hatzikonstantinou, VP at CRC Public Relations (hat tip: Samantha Azzarelli) ... former Coast Guard Commandant Adm. Thad Allen is 7-0 (h/t Ed Cash) ... Iulia Gheorghiu ... Dan Hill ... Cassie Menn of FleishmanHillard ... Andrew Mountain ... Kelly Allen ... Greg Polk is 43 ... former Rep. Diane Black (R-Tenn.) is 68 ... Maureen McGrath ... Sally Ericsson ... Doug Haynes ... Cameron Poursoltan ... Vincent Frillici (h/t Jon Haber) ... Bruce Collins, C-SPAN corporate VP and general counsel ... Rob
Goodman ... Luke Knittig, senior director of communications at the McCain Institute for International Leadership ... Andrew Straky ...

... NYT's Sheera Frenkel ... Anne Fauvre-Willis, head of marketing at Oasis Labs ... Daily Beast reporter Kelly Weill ... Lin-Manuel Miranda is 39 ... Dontai Smalls (h/t Paul Braithwaite) ... Jonathan Hankin ... Kelley Williams ... John Krainis ... Carol D'Amico ... Microsoft's Sirin "Teddy" Bulakul, who recently married Amy Lee -- pic ... Stephen Szypulski ... Alicia Preston ... Yun Kim ... POLITICO's Jerry Gray ... Paolo Liebl von Schirach ... Jackie Huelbig ... Chita Rivera ... Linda Semans ... Tim Robillard ... Edward Cafiero, SVP at Edelman ... Cathryn Donaldson ... Debbie Berger Fox ... Mitch Dworkin is 52 ... Norman Podhoretz is 89 ... Scott Goodstein is 45 ... Elaine Baxter ... Eric
Dick (h/ts Teresa Vilmain)

A message from the National Retail Federation:

U.S. businesses and consumers are paying billions of dollars in higher costs thanks to unprecedented tariffs imposed by Washington. And they're burdened by ongoing uncertainty over whether tariffs will rise even further on March 1. It's time to negotiate a deal and put an end to the trade war. Tariffs don't work. Trade works. Learn more at www.tariffsarebad.com.

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