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Presented by PhRMA: POLITICO's must-read briefing on what's driving the afternoon in Washington. | | | | |  | | By Eli Okun | | | | 
Gas prices fell 6.1% in April, contributing to an overall inflation slowdown. | Marta Lavandier/AP Photo | INFLATION NATION — It may be getting better, but it’s still bad. That was the overarching takeaway from this morning’s consumer price index report. The toplines:
- Prices rose by 0.3% in April, a much gentler monthly growth rate than the 1.2% we saw in March. Underlying that slowdown: a 6.1% drop in the price of gas from March.
- The annual rate of inflation was 8.3% over a year prior. It’s the first time that it has slowed since August — raising hopes that we may have finally passed inflation’s peak.
But there was still plenty to worry about, including a 0.9% increase in food prices. The gas price reprieve may not last long, as prices have ticked up more recently this month. Setting aside energy and food, the core prices rose twice as fast in April as in March. A home rent metric increased by the largest amount since 2006, per Reuters. The big picture, writes NYT’s Jeanna Smialek: “the pressures that have kept inflation elevated for months remain strong, a challenge for households who are trying to shoulder rising expenses and for the White House and Federal Reserve as they try to put the economy on a steadier path.” “While it is heartening to see that annual inflation moderated in April, the fact remains that inflation is unacceptably high,” President JOE BIDEN responded in a statement, ahead of a trip to Illinois today where he’ll talk about lowering food prices. The president also again urged Republicans on the Hill to pass the big China competitiveness bill and other legislation. CRUNCH TIME IN PENNSYLVANIA — As KATHY BARNETTE surges into contention in the Pennsylvania GOP Senate primary, she’s picking up air support from the Club for Growth, which endorsed her this morning and is launching a $2 million TV ad campaign, per NYT’s Shane Goldmacher. Interesting context: “The ad buy took the Barnette team by surprise.” Watch the biographical ad — CNN’s Dan Merica has a look at how Barnette emerged, writing that DONALD TRUMP’s endorsement of MEHMET OZ in the race counterintuitively “opened a pathway for Barnette to run further to the right, and more in line with the ‘MAGA movement.’” It’s an interesting dynamic: Will primary voters prefer the Trump-endorsed candidate, or the Trumpiest candidate? — But, but, but: With great attention comes great scrutiny. Merica notes that both Barnette’s “book and campaign website are sparse on details about her ties to the commonwealth.” And the Washington Examiner’s Salena Zito has a skeptical new piece up from Greensburg, where she writes, “A series of questions asked both verbally and in a text exchange with her campaign manager about her background for a story that was supposed to be a profile went unanswered with the exception of one — but that too was vague.” Among the questions her campaign didn’t answer: the name of her hometown, when she moved to Pennsylvania from Virginia (where she lived as of 2018), when she was in officer candidate school and more. “Now that she is surging, her team is trying to run out the clock,” Zito concludes. Good Wednesday afternoon.
| | | | A message from PhRMA: ICYMI: A majority of Americans reject so-called government “negotiation” once they learn it could restrict access and choice and chill the innovation of new treatments and cures. The survey also shows a majority find health care coverage costs unreasonable and a top priority health care issue for policymakers to address today. | | | CONGRESS TODAY’S SENATE VOTE — Sen. JOE MANCHIN (D-W.Va.) told reporters this morning that while he’d support a “clean” bill codifying Roe v. Wade, he will oppose the Women’s Health Protection Act, which is heading for failure on the Senate floor this afternoon. “They’re trying to make people believe that this is the same thing as codifying Roe v. Wade. And I want you to know, it’s not,” Manchin said today, per Burgess Everett. “This is not the same. It expands abortion.” Latest on the Senate vote from Alice Miranda Ollstein and Marianne LeVine — WaPo’s Dave Weigel : “GOP’s Roe messaging is better suited to news cycles, if not the long term. They’ve got a new Current Thing every week (Who was the Leaker? Do Dems condemn protesters outside justices’ homes?), Dems just keep slamming the ‘vote on doomed bill’ button.” UKRAINE AID LATEST — The nearly $40 billion package has broad bipartisan support, but could it hit some last-minute snags? Sen. RAND PAUL (R-Ky.) told WaPo’s Leigh Ann Caldwell that he’ll hold up the bill because he wants an amendment vote to add an I.G. overseeing the money. And Sen. JOHN THUNE (R-S.D.) told reporters his conference has “a few issues” with the package. COVID AID LATEST — Multiple rounds of Republican opposition have placed the Covid aid experts say is crucial for the country in “fresh political peril,” with no clear path forward on even a $10 billion deal, much lower than the administration’s original request, WaPo’s Tony Romm reports. Even as major programs run out of money and public health advocates warn the country won’t have enough money to handle a future surge, the GOP is holding firm on tying the aid package to an unrelated vote on immigration policy. — In the Senate: Sen. MITT ROMNEY (Utah), the lead GOP negotiator on Covid aid, tells Romm that the blame lies with Senate Majority Leader CHUCK SCHUMER, who could get the package passed if he just allowed votes on amendments. — In the House: Meanwhile, House Dems are running in the opposite direction, as Appropriations Chair ROSA DELAURO (Conn.) preps a package that could restore global aid funding, driving the cost higher than $10 billion. WHAT’S IN A NAME — Schumer apparently got the branding message from the White House: On the Senate floor today, he blasted “radical MAGA Republicans” in the states for restricting abortion. — But two can play that game: “I am ultra MAGA,” House GOP Conference Chair ELISE STEFANIK (N.Y.) declared this morning, per CNN’s Mel Zanona. “And I’m proud of it.” FASHION STATEMENT — Sen. KYRSTEN SINEMA (D-Ariz.) is wearing a shirt today that declares “no thanks,” per NBC’s Frank Thorp. JAN. 6 AND ITS AFTERMATH COMMITTEE LATEST — The Jan. 6 committee “is still finalizing its witness list and preparing to reach out to people it wants to testify publicly,” CNN’s Annie Grayer, Ryan Nobles, Jamie Gangel and Zachary Cohen report in an overview of the panel’s public hearing plans. In addition to calling witnesses to testify (likely names: JEFF ROSEN, RICHARD DONOGHUE, MARC SHORT, GREG JACOB ), the committee is planning to use videos of some of its private interviews as well as from the insurrection itself. CNN reports that Trump is not likely to be asked to testify; jury’s still out on MIKE PENCE, though testimony seems unlikely there, too.
| | | | DON'T MISS DIGITAL FUTURE DAILY - OUR TECHNOLOGY NEWSLETTER, RE-IMAGINED: Technology is always evolving, and our new tech-obsessed newsletter is too! Digital Future Daily unlocks the most important stories determining the future of technology, from Washington to Silicon Valley and innovation power centers around the world. Readers get an in-depth look at how the next wave of tech will reshape civic and political life, including activism, fundraising, lobbying and legislating. Go inside the minds of the biggest tech players, policymakers and regulators to learn how their decisions affect our lives. Don't miss out, subscribe today. | | | | | ALL POLITICS LOOKING FOR SOME SUNSHINE — Some Democrats may be writing off Florida, but the party isn’t giving up just yet: Dems are pouring in $15 million to a “Blue Shift Florida” voter organizing drive which, Gary Fineout writes, could amount to “Florida’s last stand as a battleground state.” This is the earliest that Florida Dems have started a coordinated campaign, with plans to hire hundreds of organizers and open dozens of offices — in part to convince donors not to stay away. ON MESSAGE — From inflation to abortion, congressional Democrats are worried that the party isn’t connecting well enough with voters, lacking the finesse to drive necessary turnout in the midterms, Sarah Ferris reports . Too wonky, too explanatory, not bold enough or not connected enough to Americans’ real struggles — the diagnoses vary, but the messaging struggles have endured. “Inside the House Democratic Caucus, there’s been a concerted push for members to use the power of their own emotions and life experiences to galvanize support for policies in the Capitol,” Sarah writes. Among those galvanizing the caucus is California Rep. KATIE PORTER, whose recent speech about the price of bacon hit House Dems hard. Notable quotable: Porter on House Dems failing to see the impact of inflation: “I had a colleague mention to me, ‘We’re not seeing it in the polls’ … Well, you don’t know what to ask.” 2022 WATCH — Most top New York Democrats don’t want Rep. TOM SUOZZI to primary Gov. KATHY HOCHUL, but he’s forging ahead anyway, hoping to peel off moderates and capitalize on the resignation of Lt. Gov. BRIAN BENJAMIN, reports NYT’s Nicholas Fandos . Despite his bid’s long odds and the prospect of damaging party unity, Suozzi “has flouted the advice of allies” — even if it also costs Dems his seat in Congress. Amid Hochul’s recent stumbles, “there are signs that weeks of public appeals may finally be finding an audience among New Yorkers who believe they have fresh reasons to doubt the governor or more progressive alternatives.” Notable quotable: “He really does have a big heart and believes in traditional Democratic values of taking care of the poor and a big social safety net,” says Rep. KATHLEEN RICE. “I just think that if he had been able to check his ego earlier in his career, he could have already run for president.” ABORTION FALLOUT THE VIEW FROM BLUE-STATE AMERICA — Some Democratic-led states are pledging to become abortion sanctuaries where other Americans can travel to access the procedure if and when the Supreme Court overturns Roe v. Wade. But that’ll be a costly promise, report Lisa Kashinsky, Shia Kapos and Victoria Colliver : “Groups that operate clinics and run abortion access funds warn that they’ll need more money, more providers and more space to help care for the influx of people.” So the “medical migration” could end up putting budgetary and other legislative pressures on Democratic statehouses. POLL OF THE DAY — The Supreme Court’s approval rating has dropped to a notably low 38% in the latest Monmouth poll out today , even as Republicans’ sentiment has turned more favorable. “Americans’ views of abortion access have remained stable. More than 6 in 10 Americans support keeping the procedure legal — either always legal (33%) or with some limitations (31%).” If SCOTUS does strike down Roe v. Wade, support for Congress to pass a national ban is in the gutter — just 9%. BEYOND THE BELTWAY AWFUL MILESTONE — Fatal drug overdoses in America hit a record 107,622 last year, per new data released today. That’s up 14.9% from 2020, with the majority of the deaths coming from fentanyl. More from USA Today DEPT. OF THE FUTURE — “Five U.S. states order a metaverse casino with alleged ties to Russia to halt sale of NFTs,” by CNBC’s Paige Tortorelli, Eamon Javers and Scott Zamost
| | | | 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. | | | | | AMERICA AND THE WORLD FOR YOUR RADAR — Al Jazeera correspondent SHIREEN ABU AKLEH, a Palestinian-American dual national, was killed Wednesday when Israeli forces reportedly shot her in the head in the West Bank. “Abu Akleh was wearing a press vest and was standing with other journalists when she was killed,” reports Al Jazeera’s Zena Al Tahhan. WAR IN UKRAINE LATEST DEVELOPMENTS … — Ukraine said its forces had pushed Russia farther back in the Kharkiv area. Vivid BBC dispatch from the front lines — The EU’s Russian oil embargo stumbled over resistance from Hungary, as talks concluded for the day without a deal. More from the NYT — For the first time, Russian soldiers will go on trial for alleged war crimes in Ukraine, as the prosecutor-general announced cases against three prisoners of war. More from the Guardian TOP-ED — “What Ukrainian mothers taught me about this war,” by first lady JILL BIDEN for CNN PLAYBOOKERS OUT AND ABOUT — To mark Europe Day, the EU delegation to the U.S. held a celebration for its first ever Transatlantic Bridge Awards at the EU ambassador’s residence Monday evening. José Andrés (who appeared via video message), Justice Stephen Breyer and Deborah Rutter were honored with the awards. Also SPOTTED: A.G. Merrick Garland, Justice Amy Coney Barrett, DHS Secretary Alejandro Mayorkas, USTR Katherine Tai, Sen. Amy Klobuchar (D-Minn.), Reps. Sean Patrick Maloney (D-N.Y.) and Jamie Raskin (D-Md.), Terry and Dorothy McAuliffe, Martin O’Malley, Margaret Brennan, Kurt Bardella and Miro Korenha, retired Lt. Col. Alexander Vindman, Adrienne Arsht and Nate Mook. — The Congressional Football Game had a kickoff reception Tuesday night at the National Indian Gaming Association, where co-captains Reps. Jimmy Panetta (D-Calif.) and Rodney Davis (R-Ill.) gave remarks. The game will benefit U.S. Capitol Police officers. SPOTTED: Ken Harvey, John Booty, Ken Edmonds, Brendon Plack, Joe Maloney, Michael Dendas, Lyndon Boozer, Lindsey Ledwin, Bill Sells and Glenn LeMunyon. FIRST IN PLAYBOOK — Morgan Gress Johnson is now head of U.S. government comms at Palantir. She previously was director of strategic comms at Invariant, and is a Brunswick Group alum. MEDIA MOVES — WaPo is creating a new bureau in Kyiv, with Isabelle Khurshudyan as Ukraine bureau chief and Max Bearak as chief Ukraine correspondent. Announcement BONUS BIRTHDAYS: DAGA’s Emily Trifone … Austin Stevens of Virginia Gov. Glenn Youngkin’s office
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