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01/11/2018 07:48 AM EDT


By Nolan D. McCaskill (nmccaskill@politico.com or @NolanDMcCaskill) and Heather Caygle (hcaygle@politico.com or @heatherscope)

DACA DEAL COULD LEAD TO DEMOCRATIC REVOLT - Senate negotiators say they're closing in on a bipartisan deal broadly mirroring the parameters outlined during President Donald Trump's immigration summit with lawmakers earlier this week, including legal status for Dreamers, increased border security and changes to family-based migration and the diversity visa lottery program. "But many Democrats, particularly in the House, are horrified that their leaders would even agree to discuss issues beyond legal status for Dreamers and limited measures to curb illegal immigration," Heather and Seung Min report this morning. "The concerns span multiple factions of the Democratic conference, and, combined
with opposition from Republican immigration hard-liners, they could put passage of a DACA deal at risk."

Many Democrats insist Dreamers should be addressed first, leaving the remaining issues to be resolved in a broader immigration deal. "Several House liberals worry that Democratic senators ... will strike a bad deal and force them to swallow it," they report. "But moderates and vulnerable members in competitive districts are hungry for a deal and willing to openly entertain the controversial changes." Democrats are unlikely to accept a deal on spending caps unless a Dreamer agreement is reached, potentially setting the stages for a government shutdown next week. Much more: http://go.politicoemail.com/?qs=61c26d51dbd8ed231a5867fd4745b99a637f123b0fce51cb5e293f01989faceff7d2fa86a4c436c8d6304f0422d5988f

Related: "DACA reinstatement throws lawmakers for a loop," by Seung Min: http://go.politicoemail.com/?qs=158d41e1f6ed3f288d66bf00ae72b25d07b4494278fc1ac46180700892f9e20bfc70f1bdc103cda7a36775e2e82670c7 and "House Republicans' hard-line immigration stand clashes with Trump overture," via The New York Times' Thomas Kaplan and Sheryl Gay Stolberg: http://go.politicoemail.com/?qs=61c26d51dbd8ed23cd6eeca59742589cf7abdc4e692c194117cf6b830d89f55ebb089c2a27386572c0b15a8aea5d9a0d

NEW YEAR, NO BUDGET? - The White House and Republican congressional leaders discussed the possibility of skipping passage of a budget this year at last weekend's Camp David meeting. "Abandoning the budget ... would be an embarrassment for Republicans, who for years railed against Democrats when they avoided one of the most basic responsibilities of Congress," Rachael and Sarah Ferris report. "But more importantly, it would mean the GOP's 2018 agenda would be sharply limited: Only with passage of a joint House-Senate budget can Republicans deploy reconciliation tools, which allow them to circumvent the Senate filibuster and bypass Democrats, as they did on last year's successful tax bill and
failed Obamacare repeal push."

What this means: No entitlement reform or welfare overhaul this year, which is a top priority for fiscal conservatives who want to shrink the $20 trillion federal debt. House Republicans "will probably have to try to pass such a document to keep its more conservative conference happy," they add. "But GOP leaders are under no illusion that such a plan could pass the Senate." Much more: http://go.politicoemail.com/?qs=61c26d51dbd8ed237cb26f50e68dc023713005556c6948efa5a3fd7137ff862bb8601a93f9afd1ea846b768a2f5511c0

TRUMP TO EXTEND ECONOMIC SANCTIONS RELIEF TO IRAN THIS WEEK - Trump is expected to extend economic sanctions relief to Iran as part of the 2015 nuclear deal but also place targeted sanctions on Iranian businesses and people, Matthew Lee and Josh Lederman report for the AP. Trump has until Friday to decide whether to extend sanctions relief for Iran's central bank or reimpose the restrictions former President Barack Obama suspended. AP sources "cautioned that Trump could still reject the recommendation from Secretary of State Rex Tillerson, Defense Secretary James Mattis and national security adviser H.R. McMaster and that no final decision had been made," they report. "They said heated
discussions were going on within the administration and with key Republican lawmakers." Much more: http://go.politicoemail.com/?qs=61c26d51dbd8ed2308b229e6684d9f6212d63d1780e7e04a3e03fb3cb2427f437a88b1bc8fd50aa0beccf53a176bdfae

Related: "Senators optimistic on plan to avoid collapse of Iran nuclear deal," by Elana: http://go.politicoemail.com/?qs=61c26d51dbd8ed234cb4b1e7b75dcd272b5f056325e6b4908ddfaf7d26652a1faaac089eb3a876beba9ec20aefd45075

CAN YOU BELIEVE IT'S ALMOST FRIDAY? Thanks for reading Huddle, the play-by-play guide to all things Capitol Hill, on this Thursday, Jan. 11. Programming Note: Huddle will be taking Monday off in honor of Martin Luther King Jr. Day but we will be back in your inboxes Tuesday morning.

WEDNESDAY'S MOST CLICKED: Sen. Bob Menendez's (D-N.J.) tweet about Sen. Jon Tester's (D-Mont.) car trouble was the big winner.

SCALISE 'RESTING COMFORTABLY' AFTER SURGERY - House Majority Whip Steve Scalise (R-La.) is in "fair condition" and "resting comfortably" after Wednesday's planned surgery, a follow-up procedure related to last June's congressional baseball practice shooting. "He is likely to remain in the hospital for several days and will then continue his recovery at home," MedStar Washington Hospital Center said in a statement. More from The Hill: http://go.politicoemail.com/?qs=61c26d51dbd8ed23e09d2c3f6c2b1bce90e349577660b528aa51d23330006b313dee0b70bbfd2a02a2a1fb46f5128d33

HOUSE NEARS DEAL ON SEXUAL HARASSMENT CHANGES - House Administration Committee Chairman Gregg Harper (R-Miss.) intends to release a bipartisan bill next week aimed at overhauling the Capitol's system for reporting and handling sexual harassment complaints. Harper hopes the bill will advance out of committee and pass the full House before the end of next week. Some have criticized the current process as unfairly burdensome to victims. Harper's legislation, however, "would ban the use of members' personal budgets to pay for misconduct settlements," Elana reports. Sexual harassment allegations have led to the retirement or resignation of five lawmakers in recent months. More:
http://go.politicoemail.com/?qs=61c26d51dbd8ed234c046dcf7463a139c5e8f7964ea0c7957242749983b0977695ae5042b82fb91a9ea69194c675e6fa

REPUBLICAN RETIREMENTS DIM HOPES OF RETAINING HOUSE - California Republican Reps. Darrell Issa and Ed Royce this week announced their retirements, "bringing the total of Republican-held open seats to a staggering 29 districts, a figure that includes lawmakers seeking higher offices," Elena Schneider and Bres report. And more departures are expected to come. "The early indicators of a wave election are glaring," per Elena and Bres. "Democrats won a handful of off-year and special elections in 2017. Even where they fell short of victory, the party performed better than expected. ... And Democrats have a double-digit lead on the House generic ballot in most polls." Much more:
http://go.politicoemail.com/?qs=61c26d51dbd8ed236d3fa7c2c8898c360540e29d6cbe40065e3a949cf8ba7c26a32e854e375830be7a795790c7acbe6f

Another ominous sign for the GOP: As The Washington Post's Mike Debonis points out, "The number of House Republicans planning to retire this year is on track to outpace any recent election where control of the chamber flipped."

Meanwhile, amid the rash of recent retirements, one lawmaker felt compelled to announce a non-retirement. Seriously. Rep. Dana Rohrabacher (R-Calif.) assured constituents Wednesday that he is, indeed, seeking reelection. "I am unequivocally running for re-election and confident that my views reflect the values and the needs of my constituents here in Orange County," he said. "I've never run away from a fight over things I believe and I'm not about to start now." Full statement: http://go.politicoemail.com/?qs=61c26d51dbd8ed2317d7419f7e1cb637800a31f51344830aa183b3d856690b892c31e1c67e0bb7556f783f2f2ec9514c

TRUMP'S PRIVATE PLAN TO UNDO OBAMACARE - As the House pursued Obamacare repeal last year, administration officials showed some conservative members an elaborate plan to gut it using executive authority. "Top administration officials had always said they would eradicate the law through both legislative and executive actions, but never provided the public with anything close to the detailed blueprint shared with the members of the House Freedom Caucus, whose confidence - and votes - President Donald Trump was trying to win at the time," Jennifer Haberkorn reports. The document lists 10 executive actions the administration planned to take. More: http://go.politicoemail.com/?qs=61c26d51dbd8ed23956f45abbc20d4e2206ef748c141d05d21df753e10c261ede487ce7206f140692cc94329678adce3

New this morning: The Trump administration will allow states to test Medicaid work requirements as a condition for eligibility, Yasmeen Abutaleb reports for Reuters: http://go.politicoemail.com/?qs=61c26d51dbd8ed236626d75b37bc7e64355d6e97dd8fa6b46f8c947fd8d96655f4b7c019db9be46a4277d3b6b7283bb5

CALL ME MAYBE (NOT!) - Senate Judiciary Committee Chairman Chuck Grassley (R-Iowa) was perplexed by Trump's tweet Wednesday calling on Republicans to "take control" of congressional investigations into Russian meddling in the 2016 election. But he was certain about one thing: He doesn't want Trump to explain himself. After initially telling reporters he shouldn't comment until he's spoken to the president about it, Grassley said he doesn't plan to have that conversation, "and I hope he doesn't call me and tell me the same thing that you said he said."

"Trump's tweet about GOP 'control' of the investigations came the day after the top Democrat on Grassley's committee, Sen. Dianne Feinstein (D-Calif.), unilaterally released the transcript of a closed-door interview with a key witness in the Russia probe, Fusion GPS co-founder Glenn Simpson," Kyle and Elana report. Trump nicknamed Feinstein "Sneaky Dianne" on Twitter and suggested she released the transcript because she's facing a tough primary opponent for reelection. Feinstein, for her part, said she owes Grassley an apology and will give him one "as soon as I see him." More: http://go.politicoemail.com/?qs=61c26d51dbd8ed234f26ecb3b6336ab78f52f6ef3b60da4e7648965f775b4928a6e9e8cc9a47acf4eb491d041500bef3

Related reads: "Trump on whether he'll testify in Russia probe: 'We'll see what happens,'" via Cristiano Lima: http://go.politicoemail.com/?qs=158d41e1f6ed3f287683d137169938e3e299414165d492a49ac1d33b84617c15f2cf66a4299fe71d7dff17d31eec7b1e and "FBI Director Wray and Deputy AG Rosenstein met with Intel Committee leaders, NBC News reports," from CNBC's Kevin Breuninger: http://go.politicoemail.com/?qs=61c26d51dbd8ed234cdf322806f038064af8e87f228cfd9b5b57257d113a2b16fa84da699bdfe65b869dd1c78c595cd2

WHITE HOUSE NUDGES RENACCI INTO OHIO SENATE RACE - Ohio Rep. Jim Renacci is expected to announce today that he will drop out of Ohio's gubernatorial race and run for the Senate, replacing state Treasurer Josh Mandel. "White House political staff sat down with Renacci Wednesday and encouraged him to run for U.S. Senate," Deirdre Shesgreen and Jessie Balmert report for the Cincinnati Enquirer. Another potential GOP candidate, "Hillbilly Elegy" author J.D. Vance, has met with Senate Majority Leader Mitch McConnell (R-Ky.) and NRSC Chairman Cory Gardner (R-Colo.). The winner of Ohio's GOP primary will face incumbent Sen. Sherrod Brown (D-Ohio). More:
http://go.politicoemail.com/?qs=61c26d51dbd8ed23c79cbb502194c1bbff2e5f8026c05970019008a3d9b6843c0e9d8c510039af91d2607037e5e38ae3

MCSALLY LIKELY TO LAUNCH ARIZONA SENATE BID TOMORROW - Arizona Rep. Martha McSally is expected to announce a Senate run Friday to replace retiring Sen. Jeff Flake (R-Ariz.). McSally will have support from the Senate Leadership Fund once she enters, Brian Schwartz reports for Fox Business, acknowledging that it "could give her a colossal advantage in campaign resources over her opponents in former State Senator Kelli Ward and Former Sheriff Joe Arpaio." According to The Hill's Scott Wong, McSally "will launch her Senate bid on Friday by flying a WW2-era plane around state of Arizona."

DEMS PLAN TO INVITE SEXUAL ASSAULT VICTIMS TO TRUMP'S SOTU - Some House Democrats may go further than just wearing black at Trump's State of the Union later this month in solidarity with sexual assault victims. "Some members will be bringing survivors of sexual assault and advocates as their guests," according to an aide to Rep. Lois Frankel (D-Fla.), who leads the Democratic Women's Working Group. "Party leaders generally don't dictate who rank-and-file members can invite with the one guest ticket each lawmaker is given," Jonathan Allen reports for NBC News. " And there's still some uncertainty within Democratic ranks over where to draw the line between addressing sexual misconduct and
turning the topic into a partisan political war." More: http://go.politicoemail.com/?qs=61c26d51dbd8ed23661c9a9ae337028501cd8b87908e8dcb714286a1e8984bf5974238111c52c130eae3bf72bea8b69a

GRAND JURY SUBPOENA IN HUNTER CASE - A federal grand jury will hear evidence this month in the probe involving Rep. Duncan Hunter (R-Calif.), who remains under investigation for allegedly spending thousands of campaign dollars on personal items including video games, oral surgery and family vacations. A subpoena issued Dec. 21 commands a witness with ties to a business in Hunter's congressional district to testify before the grand jury, the San-Diego Union Tribune reports. The paper withheld the name of the witness but noted "Hunter's campaign spent thousands of dollars at the business in 2012 and 2014." More from Morgan Cook: http://go.politicoemail.com/?qs=61c26d51dbd8ed231c4b281d759376e6386e7d0307cec9d316fbcbd69025cb710ab179e9e93764e261a87dba0e8bf9f8

Driverless Cars and the Future of Mobility - At the 2018 North American International Auto Show, POLITICO will host a live panel conversation on the future of transportation and autonomous vehicles: What are the sticking points? Will there be a mobility revolution for older Americans and people with disabilities? Speakers include: Joan Claybrook, Advocates for Highway and Auto Safety; Rep. Bob Latta (R-Ohio); Sherif Markaby, Ford Motor Company; Sen. Gary Peters (D-Mich.); Rep. Fred Upton (R-Mich.) Jan 16, 2018 - Doors open 10:45 a.m. - Main Stage, Cobo Center - One Washington Blvd. Detroit, MI. RSVP: here.

MOVING ON - Kristina Weger, who previously served as communications director and health policy adviser for Rep. Blaine Luetkemeyer (R-Mo.), is joining the government affairs team at the American Physical Therapy Association.

TODAY IN CONGRESS - The House gavels in at 9 a.m. with first and last votes around 10:45 a.m., including a controversial vote on renewing expiring federal spy powers. The New York Times with more: http://go.politicoemail.com/?qs=158d41e1f6ed3f28f8990a0a4cd484ce4d10dd1e94d459a26adf1f396771d56f061b3a502e099627aa1b49adb238f9a0 Today's full agenda: http://go.politicoemail.com/?qs=158d41e1f6ed3f2823d6032682fa168eab3a504fa046c95f6d669d89167635768b7d8e33c025ab147f5ae0ade7d29bfc

The Senate meets at 10 a.m. with votes on judicial nominees Michael Brown and Walter Counts at 12 p.m. The chamber is expected to vote on confirming Counts' nomination at 1:45 p.m. Today's agenda: http://go.politicoemail.com/?qs=158d41e1f6ed3f28cff8b16f99ee0b5fb166354b2821ace120ffea7438d3d247894d4839638306c0e0a4cb2a5a5766b8

AROUND THE HILL - Sens. Richard Blumenthal (D-Conn.) and Ted Cruz (R-Texas) and Reps. Lois Frankel (D-Fla.) and Ted Deutch (D-Fla.) will hold a conference call on their bill to prevent human trafficking. The conference call number is 877-229-8493, and the access code is 115828.

Rep. Joaquin Castro (D-Texas) will participate in a conference with progressive leaders on Dreamers, disaster aid and CHIP at 10 a.m. For dial-in information, RSVP: rjmedina.af@americanprogressaction.org.

House Minority Leader Nancy Pelosi (D-Calif.) will hold her weekly press conference at 10:45 a.m. in HVC Studio A. House Speaker Paul Ryan (R-Wis.) will hold his weekly press conference at 11:30 a.m. in HVC Studio A.

Sen. Chris Coons (D-Del.) will hold a pen and pad to discuss ongoing protests in Iran, implications for U.S. policy and why the U.S. should remain part of the Joint Comprehensive Plan of Action at 12:15 p.m. in S-316.

WEDNESDAY'S TRIVIA WINNER - Logan Ferree was first to correctly guess the oldest freshman senator ever: Rebecca Latimer Felton (D-Ga.), who was appointed to the Senate in 1922 and sworn in at age 87. She served for just 24 hours.

TODAY'S TRIVIA - Logan with today's question: When is the last time a senator retired and won the state's other seat the same year? The first person to correctly guess the year, state and senator who reversed course and won the other seat gets a mention in the next edition of Huddle. Send your best guess my way: nmccaskill@politico.com.

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