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Presented by U.S. Chamber of Commerce: Playbook is POLITICO's must-read briefing on what's driving the day Feb 07, 2019 View in browser
By Anna Palmer, Jake Sherman and Daniel Lippman

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DRIVING THE DAY
PELOSI SPEAKS ... HEATHER CAYGLE, SARAH FERRIS and JOHN BRESNAHAN: "'Too hot to handle': Pelosi predicts GOP won't trigger another shutdown": "Speaker Nancy Pelosi is vowing that the federal government will not shut down again, even as President Donald Trump ratchets up pressure for his border wall ahead of a fast-approaching deadline.

"'There will not be another shutdown,' Pelosi confidently asserted during a half-hour interview Wednesday in her Capitol office. 'No, it's not going to happen.'

"After the 35-day shutdown - and the political drubbing that Trump and Republicans took during the record-breaking impasse - Pelosi predicted GOP leaders won't go down that road again. 'I have a club that I started, it's called the 'Too Hot to Handle Club.' And this is a too-hot-to-handle issue,' Pelosi quipped." POLITICO

INSIDE THE SHUTDOWN TALKS ... WHAT YOU NEED TO KNOW ... WELL, PELOSI'S RIGHT. At this point, people involved in the DHS/border wall funding talks believe there is a good chance they will come to an agreement ahead of the Feb. 15 deadline. Here are a few things you need to keep an eye on, though:

-- NO STOPGAP: As our colleagues noted yesterday, SENATE MAJORITY LEADER MITCH MCCONNELL is strongly opposed to a stopgap spending bill that would allow the negotiations to drag on. The White House is also opposed. So these talks have to wrap up in the next few days to allow for a vote late next week.

-- THE FUNDING NUMBER: This is basic, but keep an eye on it: Republicans are aiming to up the number for fencing construction from last year. It was $1.3 billion in 2018. This, of course, is going to be a point of contention.

-- TECHNOLOGY IS A FOCUS. The president is maniacally focused on the border barrier, but Republicans and Democrats on this committee seem to be more interested in beefing up technology on the southern border as a way to deter illegal immigration and other bad behavior. Expect both sides to play that up: They are moving border security into the 21st century.

-- BUT BARRIERS WILL BE A PART OF THIS. No, PRESIDENT DONALD TRUMP is not likely to get his big border wall come next week. But he will get some sort of barrier or sets of barriers he can declare victory on -- if he wants. Reminder: The United States has barriers on the border with Mexico, and current law dictates that additional barriers be built. PELOSI has conceded that some fencing -- Normandy barriers -- can be useful at the border. But she's stood firmly against a wall.

-- BEDS WILL BE ANOTHER STICKING POINT. Before the wall was a Republican priority, Democrats always focused on beds. Democrats have for years been vocal about their skepticism of the need for massive amounts of additional detention beds for undocumented migrants. Republicans are pushing for more, saying that there is an operational need for them.

-- THE SLEEPER ISSUE: PUERTO RICO. Everyone is focused on DHS funding, but there's one issue that hasn't been worked out in the talks yet: disaster money for Puerto Rico. This has been a priority for Democrats, and will continue to be in the coming days and weeks. This might cause some friction with the White House.

REMEMBER: This is now on the famously fickle White House. Pelosi and McConnell are saying they are going to back a bipartisan deal if it emerges from the conference committee. The question everyone is asking: Can TRUMP get himself to yes?

ACTING COS MICK MULVANEY spoke with SEAN HANNITY on FOX NEWS last night: "[I]f Congress won't participate or won't go along, we'll figure out a way to do it with executive authority. With -- and let's be clear about this, legal executive authority. This is not a circumstance that the president overstepping his bounds."

Good Thursday morning. WELCOME TO THE PLAYBOOK FAMILY -- Annabelle Dickson, POLITICO Europe's London-based politics and technology correspondent, starting this Friday, will officially write the Friday edition of the London Playbook. Jack Blanchard will continue to oversee the newsletter and will write the other four editions. Subscribe

SPOTTED: PELOSI and her daughter Alexandra Pelosi at Floriana in Dupont Circle on Wednesday night. Before going to dinner upstairs, Pelosi took selfies with patrons at the downstairs bar Dito's. She signed an "impromptu card to the 'Clapback Queen' -- a reference to the speaker's viral, condescending applause during President Trump's Tuesday night State of the Union address," according to a tipster.

A message from U.S. Chamber of Commerce:

A new HHS proposal would import foreign drug pricing policies that block access to life-saving drugs, inhibit R&D necessary to discover new drugs, and threaten our nation's free-market health care system. Tell HHS: Protect America's free-market healthcare system!

BURGESS EVERETT and HEATHER CAYGLE: "Biden mounts Capitol Hill charm offensive ahead of 2020 decision": "Joe Biden is working one of his most important constituencies as he closes in on a decision about running for president: Capitol Hill Democrats. In recent weeks, the former vice president and longtime Democratic senator has spoken with former congressional colleagues about how he sees his chances in 2020, his timing for entering the race, and what it would take for him to compete in a crowded Democratic primary.

"Biden has an established fan base among Democratic lawmakers, particularly in the Senate, where he served for 36 years. The outreach indicates that Biden is looking to lock down establishment support on the front end of a campaign to give him an edge in a splintered field." POLITICO

FRESHMAN REP. ALEXANDRIA OCASIO-CORTEZ (D-N.Y.) tells STEVE INSKEEP on NPR'S "MORNING EDITION" that her "Green New Deal" is a resolution, not a bill, which means it's a "statement," she told Inskeep. "So, one of the things that we saw after we really created a conversation on the Green New Deal, is that people started to ask, well, 'What is a Green New Deal? What does it mean?' We also started seeing a lot of other folks saying, 'Oh, well I have a Green New Deal. I've called lots of things a Green New Deal.' And so the first step that we need to do is define what Green New Deal legislation is."

-- ON PELOSI: "I think she's doing great. I think she's actually doing a great job. I'm very proud that she was able to hold the caucus together during the longest shutdown in American history. I think she got concessions for the president. I think she's showing people who's boss and I very much understand that she's in an extraordinarily difficult position." The full interview

HOT HEARING ... THE HOUSE WAYS AND MEANS COMMITTEE will hold a hearing today entitled: "Legislative Proposals and Tax Law Related to Presidential and Vice-Presidential Tax Returns." It begins at 2 p.m. in 1100 Longworth.

ZACH WARMBRODT and ANDREW DESIDERIO: "Waters negotiating with Mnuchin to testify on Russia sanctions": "Treasury Secretary Steven Mnuchin, under pressure to explain the administration's controversial move to ease Russia sanctions, is in talks with House Financial Services Chairwoman Maxine Waters (D-Calif.) about appearing before her committee. ...

"Waters and Mnuchin spoke by phone Wednesday and are working to find a 'mutually agreeable date' for him to appear before the committee, a Treasury spokesperson said. In the interim, Treasury is in the process of responding to the document request, according to the spokesperson." POLITICO

THE LATEST IN VIRGINIA ... "Virginia Democrats confront second blackface scandal," by Marc Caputo and Maggie Severns: "Virginia's Democratic hierarchy is in total disarray. Days after Virginia Gov. Ralph Northam admitted to donning blackface as part of a costume decades ago, Virginia Attorney General Mark Herring admitted Wednesday that he, too, as a young man darkened his face for a college costume party.

"'In 1980, when I was a 19-year-old undergraduate in college, some friends suggested we attend a party dressed like rappers we listened to at the time, like Kurtis Blow, and perform a song. It sounds ridiculous even now writing it. But because of our ignorance and glib attitudes - and because we did not have an appreciation for the experiences and perspectives of others - we dressed up and put on wigs and brown makeup,' Herring wrote in a statement. 'This was a onetime occurrence and I accept full responsibility for my conduct.'

"Herring, who had called on Northam to resign after his blackface scandal erupted Friday, indicated in his statement that he's not sure if he'll stay in office." POLITICO

-- "Professor who accused Virginia Lt. Gov. Justin Fairfax of 2004 sexual assault issues statement detailing alleged incident," by WaPo's Samantha Schmidt, Fenit Nirappil and Laura Vozzella: "[O]n Wednesday, Fairfax's accuser came forward, publicly identifying herself and describing the encounter in July 2004 during which she said Fairfax sexually assaulted her.

"'What began as consensual kissing quickly turned into a sexual assault,' said Vanessa Tyson, a fellow at Stanford University and associate professor at Scripps College. She accused Fairfax of forcing her to perform oral sex during the encounter, which took place during the Democratic National Convention in Boston. 'I cannot believe, given my obvious distress, that Mr. Fairfax thought this forced sexual act was consensual,' Tyson said." WaPo ... Her full statement ... His statement

-- WAPO EDITORIAL BOARD: "Ralph Northam must resign": "GOV. RALPH NORTHAM (D) can no longer effectively serve the people of Virginia who elected him. His shifting and credulity-shredding explanations for the racist photograph on his medical school yearbook page, and the silence into which he then succumbed for days - after initially promising to do 'the hard work' of atonement and apology to restore his standing with Virginians - is simply too much.

"His decade-long record in public office is admirable; it is equally true that his governorship has been irredeemably wrecked by the self-inflicted, racially callous and clueless mess he has made in recent days." WaPo

A message from U.S. Chamber of Commerce:


A new HHS proposal would import alarming drug pricing policies from foreign governments, threatening America's free-market health care system and strong business environment. Learn more.

THE INVESTIGATIONS -- "Boyfriend of admitted Russian agent charged with fraud," by WaPo's Devlin Barrett and Roz Helderman: "The American boyfriend of an admitted Russian influence agent has been indicted in South Dakota for what prosecutors say was an unrelated investment fraud scheme. Paul Erickson became the subject of public interest after his girlfriend, Maria Butina, was charged last year and pleaded guilty to conspiring with a senior Russian official to infiltrate American conservative political circles as an undeclared agent for the Kremlin. ...

"The new charges against Erickson are not connected to Russia. He is charged in an 11-count indictment with wire fraud and money laundering by raising money from investors for what prosecutors say were false claims about a company that would build senior residential care facilities." WaPo

-- TRUMP INC.: "Trump Wanted $20 Million for 2006 Moscow Deal, Developer Says," by Bloomberg's Stephanie Baker: "Donald Trump's dream of putting his name on a tower in Moscow came with a hefty price tag: $20 million. Trump demanded that non-negotiable fee in 2006 from a Ukrainian-Russian named Pavel Fuks, who made his fortune in oil trading, banking and real estate development. Fuks, who says he's been barred from entering the U.S. and is embroiled in a dispute over money he spent to attend Trump inaugural events, spoke about the early Moscow negotiations in an interview with Bloomberg News in a Kiev office with a team of armed security guards stationed outside." Bloomberg

FIRST IN PLAYBOOK -- STEVE ISRAEL, the former New York Democratic congressman, is now a member of the board of advisers of Michael Best Strategies LLC. Reince Priebus is the chairman of the board. Israel will spend approximately 20 percent of his time at the firm.

TRUMP'S THURSDAY: The president will speak at the National Prayer Breakfast at the Washington Hilton this morning at 8 a.m. He will have lunch with Secretary of State Mike Pompeo at 12:45 p.m., and will attend the launch of a women's global prosperity initiative at 1:45 p.m.
PLAYBOOK READS


PHOTO DU JOUR: Flames rage at an intersection in San Francisco, on Wednesday, Feb. 6, after an explosion on a gas line set at least one building on fire, prompting evacuations of nearby buildings. | Jeff Chiu/AP Photo

2020 WATCH ... "Trump campaign looks to beef up communications team to battle big Democratic field in 2020," by CNBC's Brian Schwartz: "President Donald Trump's campaign is looking to beef up its communications team to prepare for an onslaught of attacks from Democrats running in the 2020 campaign, CNBC has learned.

"Trump's team has been interviewing dozens of candidates for positions ranging from communications director to press secretary, according to people with direct knowledge of the matter." CNBC

-- POLITICO MAGAZINE: "How Howard Schultz Created a Personality Cult at Starbucks," by Derek Robertson: "As a CEO, he projected an image of a charismatic leader with a personal touch and a mission to bring people together. But not all of his employees got on board." POLITICO Magazine

TRADE WARS -- "Farmers nearing crisis push back on Trump trade policies," by Ryan McCrimmon: "President Donald Trump's trade war is magnifying some of the toughest farm conditions since the crisis that bankrupted thousands of farmers in the 1980s - and threatening a constituency crucial to his reelection hopes.

"The president's trade policies have sent U.S. agricultural exports plunging, exacerbating already difficult economic conditions facing farmers. Average farm income has fallen to near 15-year lows under Trump, and in some areas of the country, farm bankruptcies are soaring." POLITICO

FOR YOUR RADAR -- "Justice Department opens probe into Jeffrey Epstein plea deal," by Miami Herald's Julie Brown: "The Department of Justice has opened an investigation into Secretary of Labor Alex Acosta's role in negotiating a controversial plea deal with a wealthy New York investor accused of molesting more than 100 underage girls in Palm Beach. The probe is in response to a request by Sen. Ben Sasse, a Nebraska Republican and member of the Senate Judiciary Committee, who was critical of the case following a series of stories in the Miami Herald.

"The Herald articles detailed how Acosta, then the U.S. attorney for Southern Florida, and other DOJ attorneys worked hand-in-hand with defense lawyers to cut a lenient plea deal with multimillionaire Jeffrey Epstein in 2008. The Herald's three-part series, Perversion of Justice, was cited by Assistant Attorney General Stephen E. Boyd in his letter to Sasse. DOJ's Office of Professional Responsibility will head the investigation, he said." Miami Herald

A message from U.S. Chamber of Commerce:


America's free-market health care system and strong business environment are at risk. Learn more.

HMM -- "T-Mobile executives seeking merger approval booked more than 52 nights at Trump's D.C. hotel - more than previously known," by WaPo's Jonathan O'Connell, David Fahrenthold and Mike DeBonis: "Executives from the telecom giant T-Mobile - which last year asked the Trump administration to approve its megamerger with Sprint - have booked at least 52 nights at President Trump's hotel in the District since then, even more than previously reported, according to newly obtained records from the hotel. ...

"In addition, another Trump hotel document gave the first indication of the rates that T-Mobile executives paid for their rooms. This document showed that when Legere stayed at Trump's hotel for two nights last month, his room had a rate of $2,246 per night." WaPo

MEDIAWATCH -- MICHAEL MOYNIHAN (@mcmoynihan): "So...Jill Abramson's book has finally hit bookstore shelves. A few weeks ago, reading a galley copy, I noticed an egregious error about my colleague @adrs. She tweeted it out, a s--- storm followed, Abramson corrected the mistake. ...

"'All three' chapters on Vice were clotted with mistakes. Lots of them. The truth promised in Merchants of Truth was often not true. While trying to corroborate certain claims, I noticed that it also contained...plagiarized passages." The thread

-- @JillAbramson: "The attacks on my book from some @vicenews reflect their unhappiness with what I consider a balanced portrayal. ... I endeavored to accurately and properly give attribution to the hundreds of sources that were part of my research ... I take seriously the issues raised and will review the passages in question."

-- "Delay, Deny, and Deal Flow: Two New York Times Reporters Cash in on Seven-Figure Facebook Opus," by Vanity Fair's Joe Pompeo: "[P]ublishing insiders are buzzing about a deal that Sheera Frenkel and Cecilia Kang have landed for a book based on their Facebook reporting for the Times.

"According to sources familiar with the matter, HarperCollins was the winning bidder in a competitive auction to acquire a title based on a November 14 Times investigation, headlined 'Delay, Deny, and Deflect,' on which Frenkel and Kang were two of the five bylines. One source briefed on the negotiations said it was a seven-figure deal." VF
PLAYBOOKERS
TRANSITION -- Chris LaCivita, a Republican consultant and strategist, will be a partner at FP1 Strategies.

SPOTTED: Sens. Angus King (I-Maine) and Lamar Alexander (R-Tenn.) at Ford's Theater last night watching a performance of "12 Angry Men."

BIRTHDAY OF THE DAY: Dave Levinthal, federal politics editor and senior reporter for the Center for Public Integrity. What he's been reading recently: "'Prisoner' by Jason Rezaian, about his 544 days in captivity in Iran, where he was the Washington Post's Tehran bureau chief. It's a dreadful reminder of the sacrifices some journalists throughout the world are making to reporting what's truth. It's also an inspiring story of how a reporter -- who could have been you or me -- somehow found the will to survive, rebuild and now thrive." Playbook Plus Q&A

BIRTHDAYS: Former Colorado Gov. John Hickenlooper is 67 ... Deborah Bodin Cohen ... Gay Talese is 87 ... former Sen. Herb Kohl (D-Wis.) is 84 ... Jessica Kershaw ... Beth Frerking ... Matt Aiello ... Jeff Kearns, Bloomberg's U.S. economy editor ... Sterling Emerling ... Jennifer Diamond Haber ... Monica Medina (hat tips: Miro, Kurt and Ron Klain) ... Jim Burns ... Carleton Bryant ... former Rep. Stephen Fincher (R-Tenn.) is 46 ... former Rep. Doc Hastings (R-Wash.) is 78 ... former Rep. Michael Grimm (R-N.Y.) is 49 ... former Rep. Allen West (R-Fla.) is 58 ... Robert Howard, communications director for the North Carolina Democratic Party ... James Gilbert, chief administrative law judge of
the U.S. Postal Service ... Roberta McCain is 107 ...

... Patrick Ferrise, producer of "The Press Pool" on SiriusXM POTUS ... POLITICO's Laura Barrón-López ... Mary Beth Stanton (h/t Heather Podesta) ... Frank Binzoni ... Emily Hampsten of Sen. Dick Durbin's (D-Ill.) office ... Colleen Murphy ... Cameron Langford, COS for Stu Loeser & Co. ... Miguel L'Heureux ... Jeanne McCann ... Cappi Williamson, who works in public affairs at WeWork in London ... Jeff Marschner, director of media relations at the Hoover Institution, is 41 ... Tiffany Win ... Christine Grimaldi ... John Criscuolo, a public policy advisor for Squire Patton Boggs ... Marielle Kress ... Sean Elsbernd.

A message from U.S. Chamber of Commerce:

HHS has proposed a dangerous new policy that would set prices for some Medicare drugs based on an international benchmark. This would import the foreign government price controls set by countries with socialized health care systems.

It's not a coincidence that patients in these foreign countries have access to a fraction of the cures Americans do.

This proposal would threaten our free-market health care system, inhibit the R&D necessary to discover new treatments, and block access to life-saving drugs for America's seniors. Protect U.S. businesses and our free-market health care system. Tell HHS: Drop this dangerous proposal.

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