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Presented by Mastercard: POLITICO's must-read briefing on what's driving the afternoon in Washington. | | | | | |  | | By Ryan Lizza, Eli Okun and Garrett Ross | | | BREAKING — D.C. is imposing a vaccine requirement for people to enter restaurants, gyms, bars, theaters and more starting Jan. 15. SCOOP — Michael Stratford and Eugene Daniels report, “The Biden administration plans to extend the pause on federal student loan payments through May 1 amid a surge in Covid cases fueled by the Omicron variant, according to three people familiar with the decision.” The White House confirmed the news. JUST POSTED — Your must-read piece of the day is Ruby Cramer’s fascinating 8,000-word profile of … well, actually, you should read the beginning of the piece below before we give his name away. But suffice to say that Ruby spent a week in Southern California with this polarizing #Resistance hero over the course of September and October, and she came back with an addictive read for POLITICO Mag that everyone will be talking about. Here’s how it begins … “VENICE, Calif. — Inside a two-bedroom apartment, 11 blocks from the ocean, there is a man in free fall, though he has nowhere to go. He wears a monitor on his right ankle, government-issue, blinking green beneath his tapered track pants. He doesn’t leave, except for court appearances and medical appointments. He makes calls on a red flip phone, designed for seniors by a company called Jitterbug: big buttons, no internet, cell service from Cricket Wireless. His old iPhone — the one where he handled his TV bookings, tapped out tweets and called reporters, wresting each story into the version he wanted, with charm, with pure aggression, with whatever the day required — now goes straight to voicemail. Maybe you had his number. Back then, for a while at least, who didn’t? “Behind a tall fence in the backyard, he can hear the lilt of brunches on Rose Avenue, laughter and music. There’s an ice cream parlor he likes on the corner, 482 feet away, but to get delivery, as with anything requiring internet access, the order must come from his roommate JAY MANHEIMER, the childhood friend from St. Louis who took him in almost two years ago when he was released on home confinement. The apartment sits beneath the flight path to the Santa Monica terminal where he used to fly jets. Engines roar overhead. The last time he flew private, in January 2020, he was shackled. Federal marshals chartered a plane to take him to the Metropolitan Correctional Center in Manhattan, where he spent 74 days in solitary confinement, in the high-security cell once occupied by EL CHAPO, one level above the unit where JEFFREY EPSTEIN was held…” And the big reveal … “To ask MICHAEL AVENATTI to explain what happened is both vivid and vexing. The details of the last three years come easily — dates, names, locations, tweets, dinners, his thoughts at the time. It’s the big picture that causes difficulty.… His main contention, his genuine belief, is that he would never have been pursued by federal prosecutors in three separate cases, on two coasts, held in solitary confinement alongside suspected terrorists and national security threats, if his name were not Michael Avenatti.” Good Wednesday afternoon. | | | | A message from Mastercard: Holiday cheer is in the air and shoppers are returning to stores in force, including millions of small businesses across America. Mastercard SpendingPulse data shows that total retail sales are up nearly 30% compared to last year. By empowering small businesses with digital payment solutions, data insights and the tools to operate more efficiently, Mastercard is committed to helping them during this holiday season, and thrive in the future. | | | THE ECONOMY From the White House this morning, President JOE BIDEN touted the economic progress the country has made on his watch, while acknowledging that the bite of inflation has clipped Americans’ heels. “Addressing these costs has been and will continue to be my top priority [in] the entire administration,” he said, adding that he’s focused on improving supply chains, lowering gas prices and passing Build Back Better. — Paging JOE MANCHIN on inflation: “The way to do this is not to slow down our economic turnaround, not to step back from all this progress, but to build on it.” A couple of reads this morning demonstrate the challenges the administration will face throughout the economy: — Energy Secretary JENNIFER GRANHOLM has been pushing oil executives to boost production to help lower gas prices, but the climate-conscious administration is running into an industry little inclined to suddenly do it favors, WSJ’s Christopher Matthews, Timothy Puko and Collin Eaton report. Those execs “have made few promises about raising output … and explained that it may be months before higher oil prices lead to resurgent U.S. production.” The administration argues that its long-term energy transition plans don’t mean the industry can’t ramp up right now. But oil companies also face business constraints. — Expect plenty more supply chain struggles as we head into 2022, even as the administration tries to make logistical and data improvements to unravel the kinks, report Steven Overly and Alex Daugherty. Despite a holiday season that’s going better than some feared, “[t]he reality facing businesses and consumers alike will be months of inflation, labor shortages and product delays as supply chain issues persist.” BUT, BUT, BUT … Here’s the White House’s favorite story today: “Why Christmas Gifts Are Arriving on Time This Year,” by NYT’s Niraj Chokshi … Chief of staff RON KLAIN responds: “Merry Christmas to all, and to this over-hyped narrative, a Good Night.” THE VIEW FROM 1600 PENN — As of now, the White House thinks the American Rescue Plan from March will be enough to handle the economic impact of the Omicron variant, reports WaPo’s Jeff Stein. But economists are bracing for a potential hit, as uncertainty remains high. And some industries are already pushing for more government relief funding to make it through another pandemic surge — a tricky ask for an administration that has shifted its economic focus in recent months to stemming inflation. — A LESS ROSY VIEW: CNN’s Matt Egan reports in a detailed story that the vast majority of $5.7 trillion in emergency aid handed out since the start of the pandemic has been exhausted. The funding for restaurants has completely run out, while help for small businesses is almost over. Now the big question is whether they can weather the next storm — or whether the White House and Congress will have to consider another round of assistance. CONGRESS MITCH DROPPING BREADCRUMBS — Senate Minority Leader MITCH MCCONNELL seems to be enjoying the news cycle of trying to lure Manchin (D-W.Va.) to switch parties. Talking to Hugh Hewitt today, McConnell didn’t dismiss the prospect that Manchin could retain his Energy and Natural Resources chairmanship if he flipped control of the chamber: “That’s something we’d talk to him about. Obviously, he, I’m sure, enjoys being chair of the committee.” — McConnell also said he hopes Sen. JOHN THUNE (R-S.D.) doesn’t leave: “It would be a real setback for the country and for our party if he retires, and I certainly hope that he won’t.” More from Anthony Adragna in Congress Minutes | | | | POLITICO TECH AT CES 2022 - We are bringing a special edition of the POLITICO Tech newsletter to CES 2022. Written by Alexandra Levine and John Hendel, the newsletter will take you inside the most influential technology event on the planet, featuring every major and emerging industry in the technology ecosystem gathered together in one place. The newsletter runs from Jan. 5-7 and will focus on the public policy related aspects of the gathering. Sign up today to receive exclusive coverage of the Summit. | | | | | POLITICS ROUNDUP GETTING PERSONAL — We all know about the extensive gerrymandering for partisan gain ongoing in this year’s redistricting processes. But in some cases, the decisions are even more self-interested: Mapmakers draw lines specifically to accommodate their own political ambitions. Ally Mutnick reports that from Oregon to Missouri to Pennsylvania, such gambits are attracting more conflict-of-interest scrutiny — and they can sometimes backfire on the creators. “It’s possible this cycle will feature fewer legislator runs than in the past, perhaps as a result of the increased attention on the benefits of taking political machinations out of the process.” — New Jersey has a new congressional map, and it looks likely to shore up the seats of swing-district Democrats JOSH GOTTHEIMER, ANDY KIM and MIKIE SHERRILL while potentially sacrificing TOM MALINOWSKI in a difficult midterm year for the party. Republican Rep. JEFF VAN DREW will also get a little safer. Dave Wasserman breaks it down — And Arizona has a new map, one that creates a couple of swing districts that could transform the delegation from 5D-4R to 6R-3D in a good year for the GOP next November, per Ally Mutnick. Meanwhile, Democratic Rep. TOM O’HALLERAN faces an uphill battle. 2022 WATCH — For the first time in its 11-year history, the conservative women’s group Maggie’s List is supporting a challenger to an incumbent Republican woman in Congress: It’s throwing its weight behind KELLY TSHIBAKA over Sen. LISA MURKOWSKI (R-Alaska), per Fox News’ Paul Steinhauser. 2024 WATCH — Sen. TED CRUZ (R-Texas) is eyeing another run for president: He said today in an interview with The Truth Gazette that “there’s a reason historically that the runner-up is almost always the next nominee.” Watch here POLICY CORNER WHAT THE WHITE HOUSE IS TOUTING — The Affordable Care Act expanded health insurance to 4.6 million more Americans this year, Biden said this morning. That includes 1.8 million new enrollees just since Nov. 1. Still, the White House made sure to emphasize that Congress needs to pass the Build Back Better bill to expand coverage further and bring down costs. More from Reuters THE PANDEMIC AT THE WHITE HOUSE — Biden tested negative for the coronavirus again this morning. NEW TOOL ON THE WAY — “FDA authorizes Pfizer’s Covid-19 pill,” by Katherine Ellen Foley and Erin Banco MANDATE DEBATE — On top of having handled the last 21 months and staring down yet another wave, hospitals are struggling with labor shortages and confusion around vaccination mandates, reports Rachael Levy . Now the administration has to decide how and how quickly to enforce its jab requirement for health care workers. VACCINATION NATION — Don’t expect the Omicron variant to change many unvaccinated people’s minds: Just 12% of such Americans say it’s making them likelier to get the shot, per a new Kaiser Family Foundation survey. WSJ’s Scott Calvert, Cameron McWhirter and Jon Kamp write that it seems likelier to drive more booster shots, as a slight majority of twice-jabbed Americans say they’re now more inclined to go for No. 3. ABOUT THOSE TESTS … David Lim notes that the new contract solicitation for Biden’s big program of 500 million at-home tests indicates those tests won’t all come in January, but could be spread out over the weeks following. ICYMI — Perhaps the most promising recent pandemic news is the revelation that the Army has created a vaccine it says can be effective against all Covid and SARS variants, as Defense One’s Tara Copp scooped Tuesday. It still needs to go through phase 2 and 3 trials, but the early results are raising hopes that the mythical pan-coronavirus vaccine is within reach. | | | | STEP INSIDE THE WEST WING: What's really happening in West Wing offices? Find out who's up, who's down, and who really has the president’s ear in our West Wing Playbook newsletter, the insider's guide to the Biden White House and Cabinet. For buzzy nuggets and details that you won't find anywhere else, subscribe today. | | | | | BEYOND THE BELTWAY FBI IN THE MIX, PART I — In the NYT, Mike Baker, Sergio Olmos and Adam Goldman reveal that plainclothes FBI agents infiltrated the long-running far-left protest movement in Portland, Ore., surveilling activists and guiding police toward arrests. The operation, which went on for months in 2020 and into this year, prompted some First Amendment concerns within the FBI and DOJ, as officials sought to balance law enforcement aims with constitutionally protected protest. FBI IN THE MIX, PART II — AP’s Jason Dearen has a fascinating story out of Jacksonville about JOSEPH MOORE, a veteran who wore a wire for the FBI to go undercover as a Ku Klux Klan hit man for almost a decade in North Florida. Speaking out now for the first time, Moore “would help the federal government foil at least two murder plots” and was “an active informant when the FBI exposed klan members working as law enforcement officers in Florida.” But he tells the AP that law enforcement doesn’t have the upper hand: “None of these agencies have any control over any of it. It is more prevalent and consequential than any of them are willing to admit.” VALLEY TALK POLL OF THE DAY — Americans don’t trust social media companies with their information, and 64% of the country thinks the government should do more to regulate Big Tech on privacy, per a new WaPo-Schar School poll, write Heather Kelly and Emily Guskin . That includes majority support from Democrats, Republicans and independents, and it represents a big shift from 2012, when the majority said the government shouldn’t get more involved. Just 10% of Americans think Facebook has a positive impact on society. The poll AMERICA AND THE WORLD RUSSIAN TO CONCLUSIONS — Russia’s foreign minister said the U.S. and Russia will sit down for negotiations next month to talk about the country’s demand that NATO not expand to Ukraine, per the AP. PLAYBOOKERS SAD NEWS — “Former Virginia Gov. and Sen. Chuck Robb and wife injured after McLean house fire,” WTOP MEDIA MOVES — Maggie Miller will be a cybersecurity reporter at POLITICO, focusing on its national security aspects. She currently is cybersecurity policy reporter at The Hill. … Kerry Flynn will join Axios to co-lead a Media Deals newsletter as part of Axios Pro. She currently is a media reporter at CNN. WELCOME TO THE WORLD — Ami Sanchez, director of federal relations at Strategies 360, welcomed Carolina Elizabeth Sanchez on Dec. 15. She came in at 8 lbs, 5 oz. Pic … Another pic | | | | A message from Mastercard:   Mastercard is helping entrepreneurs thrive during this holiday season and into the future. 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