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By Seung Min Kim (
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OBAMA: END THE SEQUESTER - POLITICO's David Nather has a sneak preview of Obama's message to House Democrats at their retreat in Philadelphia: "President Barack Obama will tell House Democrats on Thursday that his budget will call for an end to sequestration cuts and build on the 'middle class economics' package he outlined in the State of the Union - setting up a clear contrast with Republicans in Congress who want to stick to the spending limits."

--"It's not exactly a surprise that Obama will propose an end to sequestration cuts in his budget. He's been speaking out against them for years, calling them 'a really bad idea.' And his budget last year proposed a separate $56 billion fund to show how spending could be increased on defense and economic initiatives. This time, Obama's budget will call for an outright end to the next round of automatic spending cuts that are scheduled to take place in October."
http://go.politicoemail.com/?qs=a3cb0952dcf6509652a8bccf30f8beb85ae4d243300cf1bc620d58d1717caf3c
http://go.politicoemail.com/?qs=a3cb0952dcf6509652a8bccf30f8beb85ae4d243300cf1bc620d58d1717caf3c

--POLITICO's Lauren French, filing from Philadelphia, writes how House Dems want to use the retreat to zero in "on a streamlined agenda designed to excite middle class voters."
http://go.politicoemail.com/?qs=a3cb0952dcf650963b491edb9f2fe56c021a3ab0256456f7a4eb95ad50c37c90
http://go.politicoemail.com/?qs=a3cb0952dcf650963b491edb9f2fe56c021a3ab0256456f7a4eb95ad50c37c90

--And a sneak peek: House Dems are rolling out a memo later today that will slam House Republicans for a "disastrous" January, outlining what Dems say are their fumbles each week of the new Congress. Spox Drew Hammill says the memo is "proof positive that House Republicans are only interested in furthering the agenda of their most extreme elements." See the memo here:
http://go.politicoemail.com/?qs=a3cb0952dcf65096e80b6fdf93ceffdf9011639266b6261bb4d1d0bae6edd67a
http://go.politicoemail.com/?qs=a3cb0952dcf65096e80b6fdf93ceffdf9011639266b6261bb4d1d0bae6edd67a

'I WILL BE LORETTA LYNCH' - I have the wrap-up of attorney general nominee Loretta Lynch's day-long confirmation hearing before Judiciary: "President Barack Obama's attorney general nominee came to Capitol Hill with one overriding message Wednesday: 'I will be Loretta Lynch.' Translation: She won't be Eric Holder - not the attorney general who has angered Republicans during a six-year contentious relationship in which lawmakers called for his resignation and the House held him in contempt.

--"But Senate Republicans repeatedly used Lynch's nearly eight-hour confirmation hearing to invoke the controversies of Holder's tenure, even as she pledge a fresh start with Congress, promised to maintain her independence from the White House and repeatedly declined to be pulled into drawn-out debates about issues like immigration, gay marriage and alleged targeting of conservative groups by the Internal Revenue Service ... 'If confirmed as attorney general, I will be myself. I will be Loretta Lynch,' the veteran federal prosecutor responded. 'And I would refer you to my record as United States attorney on two occasions as well as a practicing lawyer to see the independence that I have
always brought to every particular matter.' Lynch, who would be the first black female attorney general, turned in a polished performance free of any serious stumbles."
http://go.politicoemail.com/?qs=a3cb0952dcf65096684c55ba588a294c3fd59cb713967f4938420423e78ed036
http://go.politicoemail.com/?qs=a3cb0952dcf65096684c55ba588a294c3fd59cb713967f4938420423e78ed036

--Don't expect a committee vote on her nomination until after the mid-February break.

--The AP's Laurie Kellman has a nice profile on new Senate Judiciary Committee Chairman Chuck Grassley, whom she calls "the Senate's most enthusiastic tweeter" and says is "steering the venerable Judiciary Committee into a brave new world."
http://go.politicoemail.com/?qs=a3cb0952dcf65096bfe705c5fbf1bb0c4d23f6dc6ed3cf30ea55d2fff54ccfdb
http://go.politicoemail.com/?qs=a3cb0952dcf65096bfe705c5fbf1bb0c4d23f6dc6ed3cf30ea55d2fff54ccfdb

--In an interview with CQ Roll Call's Niels Lesniewski, Cruz calls Lynch's views on immigration "dangerous" and left it up to Senate Majority Leader Mitch McConnell to even put her nomination on the floor:
http://go.politicoemail.com/?qs=a3cb0952dcf65096147c04c44f63cbdfb1feecf1a48e0a7340640f2529e7a512
http://go.politicoemail.com/?qs=a3cb0952dcf65096147c04c44f63cbdfb1feecf1a48e0a7340640f2529e7a512

GOP MOVING ON OUSTING ELMENDORF - Rebecca Shabad for The Hill: "Republicans on the Budget committees are interviewing candidates to replace Douglas Elmendorf as head of the Congressional Budget Office (CBO) ... While GOP leaders haven't publicly confirmed the plan to boot Elmendorf from the nonpartisan office, Republicans have approached several potential candidates about stepping in, sources say. They also say the search is moving toward an end and that Republicans already have a shortlist of candidates."

--"According to sources, those approached include Alex Brill, a research fellow at the American Enterprise Institute and an economist on former President George W. Bush's Council of Economic Advisers; Jeffrey Brown, a finance professor at the University of Illinois who also served on the Council under Bush; and Warren Payne, who was policy director under former House Ways and Means Committee Chairman Dave Camp (R-Mich.)."
http://go.politicoemail.com/?qs=a3cb0952dcf6509671ff6ef3722c0a399d17fb1bd92df946f26933baa1066d88
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EX-DHS CHIEFS: DON'T MESS WITH HOMELAND FUNDING - Ed O'Keefe for The Washington Post: "The three former heads of the Department of Homeland Security are warning Congress not to hold up funding for the sprawling department as lawmakers continue fighting over immigration reform. The three former secretaries of homeland security -- two Republicans and one Democrat -- say in a letter obtained by The Washington Post that a prolonged fight could risk national security at a time of sustained threats from terrorist groups. Their message comes as the U.S. Senate is expected to begin debating a DHS spending bill in the coming days."
http://go.politicoemail.com/?qs=a3cb0952dcf65096891ea941b6d5841dc03b644baed7a751e389164309f8af09
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TRANSITIONS - Former Rep. Jim Moran (D-Va.) is joining McDermott Will & Emery LLP as senior legislative adviser in its government strategies practice. He'll "bolster the firm's lobbying practice in such specialty areas as defense, government contracting, trade, foreign governments, and technology," according to a press release from the firm. Moran served in Congress from 1991 until this year, when he retired.

John Ashbrook, the pride of Cincinnati, Ohio, is leaving the Hill after more than a decade. Burgess Everett with the scoop: "The staff director of the Senate Republican Communications Center and a key to the GOP's messaging strategy, Ashbrook is expected to depart the GOP leader's office in February ... 'Ashbrook is an incredibly talented guy. He was instrumental to winning the majority and he'll play a big role in our effort to build upon that success,' McConnell said of his longtime aide."
http://go.politicoemail.com/?qs=a3cb0952dcf65096f9df5408f2c48bb488b807b72ba9f64db4b48c9f00d82f31
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Stephanie Genco Kittredge, communications director for Rep. Peter Roskam (R-Ill.), is packing her boxes and heading across the street to the National Republican Congressional Committee to be its new deputy policy director. Friends and colleagues are gathering at Hawk 'n' Dove to raise a glass in her honor.

California Rep. Adam Schiff, the top Democrat on the House Intelligence Committee, is making several staffing moves. Michael Bahar is joining the committee as his staff director, and Timothy Bergreen - Schiff's current chief of staff in his personal office -- will be deputy staff director. Jeff Lowenstein will replace Bergreen as chief, and Patrick Boland will continue doing comms for Schiff and will also formally be communications director for committee Dems.

** The Beer Institute represents the American beer industry, which employs more than 2 million Americans earning nearly $79 billion in wages and benefits. The industry pays more than $49 billion in business, personal and consumption taxes, making taxes one of the most expensive ingredients in your beer. Learn more at BeerInstitute.org. **

IT'S THURSDAY, JAN. 29, 2015 and welcome to The Huddle. Please send your tips, suggestions, comments, complaints, and corrections to
mailto:skim@politico.com
skim@politico.com and please follow along on Twitter at @seungminkim.

My new followers include @RepKarenBass and @DelWilber.

TODAY IN CONGRESS - The House is out. The Senate is in at 9:30 a.m. and is set to wrap up Keystone this week. Expect up to seven roll call votes at 11 a.m. and then six - including final passage - at 2:30 p.m.

AROUND THE HILL - Sens. Dick Durbin, Jeff Flake, Patrick Leahy and Jerry Moran will hold a news conference on Cuba at 11:45 a.m. in Senate Studio.

MCCONNELL PREDICTS 'STATUS QUO' ON FILIBUSTER - The majority leader sits down for an interview with USA Today's Susan Page: "The 72-year-old Kentucky senator ... poured cold water on a rules change being considered by some Senate Republicans to prevent Supreme Court nominations from being subject to filibuster, though he seemed to like the substance of the idea. 'The custom up to 2000 was that nominees would get an up-or-down vote,' he said, noting that despite considerable opposition even Clarence Thomas was confirmed without having to overcome a filibuster."

--"However, McConnell went on, 'There just is no consensus at the moment (among Republicans), and I think where we're probably going to end up is with the status quo.'"
http://go.politicoemail.com/?qs=a3cb0952dcf65096aed80f4d5881d1f63b03025b88d5555a2d4e27ba8f54061e
http://go.politicoemail.com/?qs=a3cb0952dcf65096aed80f4d5881d1f63b03025b88d5555a2d4e27ba8f54061e

RAND, CRUZ, RUBIO: AUDIT THE FED - Alex Rogers for TIME magazine: "The three Republicans senators potentially running for the White House in 2016 agree on at least one thing: The Federal Reserve should be audited. Kentucky Sen. Rand Paul re-introduced a bill with Sens. Ted Cruz of Texas and Marco Rubio of Florida on Wednesday to order the nonpartisan Government Accountability Office to review the Fed's monetary policy decision making and increase congressional oversight."

--"The bill has a much greater chance of making it to the Senate floor under new Senate Majority Leader Mitch McConnell, who is one of 30 co-sponsors according to Paul's office."
http://go.politicoemail.com/?qs=a3cb0952dcf65096ac6604adb31155bf8658d185d080a0c12d8c8fff909b9ed1
http://go.politicoemail.com/?qs=a3cb0952dcf65096ac6604adb31155bf8658d185d080a0c12d8c8fff909b9ed1

--Meanwhile, Rand Paul says he would shoot a drone flying over his house with a shotgun:
http://go.politicoemail.com/?qs=a3cb0952dcf65096702551fe50b87b1cb8a5d292a4ecfd4fbf690d5dddb828ed
http://go.politicoemail.com/?qs=a3cb0952dcf65096702551fe50b87b1cb8a5d292a4ecfd4fbf690d5dddb828ed

HOUSE LEADERS COULD BOOT DISSENTERS - Jake Sherman, Lauren French and Anna Palmer: "House Republican leadership's crackdown against dissenters is continuing. Louisiana Rep. Steve Scalise, the No. 3 House Republican, is laying plans to boot lawmakers from the leadership's elite vote-counting team if they oppose party-line procedural motions. That might sound like insignificant inside baseball, but it's a critical development - and yet another sign that top Republicans are looking to ostracize troublemakers in the Capitol."
http://go.politicoemail.com/?qs=a3cb0952dcf650963d9667601273ab980e61e388e883704b6b26f52884d041fd
http://go.politicoemail.com/?qs=a3cb0952dcf650963d9667601273ab980e61e388e883704b6b26f52884d041fd

BIPARTISANSHIP ON OBAMACARE? Alan Fram for the AP: "In a rare show of bipartisanship over President Barack Obama's health care law, a Senate committee voted unanimously Wednesday to exclude veterans from the 50-worker threshold that triggers required coverage for employees under that statute. The Senate Finance Committee vote was 26-0, a departure from the usual party-line fights over Obama's showcase 2010 law. Yet senators' comments suggested that party-line battling over many aspects of the statute - and other laws - could erupt when the measure reaches the full Senate."
http://go.politicoemail.com/?qs=a3cb0952dcf650960d607c363dbe850c43c5d7f4dc991664cabd5b2ad4f854b8
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WHY NOT SHERROD BROWN FOR 2016? The Washington Post's Ben Terris explores why progressives aren't pushing Sen. Sherrod Brown (D-Ohio) toward a presidential run: "He's an unabashed progressive with just enough blue-collar appeal to win a swing state such as Ohio. He's the highest-ranking Democrat on the Senate Banking Committee, with a megaphone to go after Wall Street and four decades of public service under his belt. He's an affable guy, appealing but not too slick, with smiling eyes and a good head of hair and a media-friendly feminist wife. And he was preaching economic mobility years before it became the central tenet of the nascent 2016 campaign."

--"By almost any standard, Sen. Sherrod Brown, 62, a former Eagle Scout with a voice like Tom Waits, is the kind of pol who should at this very moment be making the rounds of the Sunday shows, growling to packed audiences in Iowa and all the while insisting to major media outlets that he is not considering running for president at this time. Or at least you'd expect a bunch of liberal activists to be mounting a Draft Sherrod campaign. No? 'Huh, I really had not thought about it until this phone call,' said Adam Green of the Progressive Change Campaign Committee."
http://go.politicoemail.com/?qs=a3cb0952dcf65096ac389a4f99d5b4dab25ea049900fa9eb3aff66786b9f267d
http://go.politicoemail.com/?qs=a3cb0952dcf65096ac389a4f99d5b4dab25ea049900fa9eb3aff66786b9f267d

WEDNESDAY'S TRIVIA WINNER - Casey Becker was the first person to correctly answer that Rep. Steve King (R-Iowa) and Gov. Terry Branstad are the two Iowa politicians who had their respective weddings on the same day: June 17, 1972.

TODAY'S TRIVIA - For those who were watching Loretta Lynch's confirmation hearing all day yesterday, this will be easy. Name the title of the book that Sen. Orrin Hatch (R-Utah) said was so good it took him only a day to read it. The first person to correctly answer gets a mention in the next day's Huddle. Email
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GET HUDDLE emailed to your Blackberry, iPhone or other mobile device each morning. Just enter your email address where it says 'Sign Up.'
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** Nobody knows the beer industry better than the Beer Institute. Have a question about beer policy? Contact the Beer Institute. With roots dating back to 1862, the Beer Institute represents brewers, beer importers and allied suppliers before Congress, the media and others. You can learn more about the business of beer, and answer your questions about complex industry issues, by calling the Beer Institute at (202) 737-BEER (2337), or by visiting BeerInstitute.org. **

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