Democrats could see a bruising clash with Sanders over economic bill

Democrats are bracing for a grueling weekend of vote-a-rama in the hopes of finally passing their long-sought economic bill, known as the Inflation Reduction Act. 

Republicans have vowed to force a series of tough votes in opposition of the plan. But some of lawmakers’ most painful votes could come from one of the Senate’s foremost progressive crusaders. 

Sen. Bernie Sanders (I-Vt.) says he is planning to put senators on the record with proposed amendments to Democrats’ sprawling tax, health care and climate bill, as the Senate prepares to hunker down the marathon voting session.  

Sanders was key to helping craft Democrats’ earlier Build Back Better Act and has bristled over the scaled-down Inflation Reduction Act. But his chance to force floor votes on key issues important to progressives could lead to headaches for the party. 

While Sanders voiced satisfaction with certain parts the narrower plan in floor remarks earlier this week, he also made pointed remarks at the bill, which he said “does virtually nothing to address the enormous crises that working families all across this country are facing today.” 

The Vermont senator specifically announced he would be introducing an amendment “to make sure that Medicare pays no more for prescription drugs than the [Veterans Affairs]. He also pushed for measures to provide “comprehensive dental vision and hearing benefits,” in addition to lowering “the Medicare eligibility age to at least 60” and to extend the solvency of Medicare. 

“Given that this is the last reconciliation bill that we will be considering this year, it is the only opportunity that we have to do something significant to the American people that requires only 50 votes, and that cannot be filibustered,” he stressed from the floor of the upper chamber.  

Sanders told The Hill on Thursday that he is still finalizing his amendments, and is looking at areas like “health care, childcare, and some other issues.”

Senate Majority Leader Charles Schumer (D-N.Y.) announced a deal with Sen. Joe Manchin (D-W.Va.) on the bill last week, months after talks around the Build Back Better Act fell apart largely due to opposition from the West Virginia centrist. 

Among the measures tucked into the new deal are billion-dollar investments in climate programs, text aimed at reducing prescription drug prices and measures to extend health care subsidies.  

The bill also contains tax measures targeting large corporations that Democrats say is intended to bring in revenue to help cut the nation’s deficit, and, in turn, combat inflation. However, there is debate among experts around how much the bill would impact rising costs. 

The agreement between Manchin and Schumer was a welcome surprise for Democrats. But many Democrats say they wanted much more. 

“It’s not everything we want, but it’s pretty rare that you get everything you want in a single bill,” Sen. Elizabeth Warren (D-Mass.) told reporters on Thursday, while touting the “powerful progressive priorities that we are about to get through Congress.” 

The new bill included some provisions Democrats previously sought as part of Build Back Better, but is a fraction of the earlier plan, which initially contained Sanders’s proposal to expand Medicare to cover dental, hearing and vision for recipients, as well as measures seeking for historic investments in housing, child care, education and other party-backed priorities.  

“It’s been a long dry spell, and I am enthusiastic about what we are on the verge of getting done,” said Warren, who added she won’t be filing amendments. 

Democrats are hoping to pass the plan using a process known as budget reconciliation, which would allow the party to approve the legislation with a simple majority, bypassing the usual 60-vote filibuster. 

But to use the procedure, which has strict rules on how it can be deployed, Democrats have a list of obstacles they have to overcome before they can bring the bill to the floor for a vote. That includes what’s known as vote-a-rama — during which senators can offer a series of amendments for a chance to influence legislation before a final vote on the overall bill. 

Senators don’t expect the vote-a-rama itself to attract much public attention, but the votes that come out of it can. 

Republicans, who are overwhelmingly opposed to the plan, have been sharpening their knives ahead of the event. They plan to bring up a series of hard votes for Democrats that could be used as ammunition as midterm elections approach. 

The last time Congress saw a vote-a-rama for a reconciliation bill was last year, when Democrats used budget reconciliation to pass the American Rescue Plan, a sweeping coronavirus relief bill. 

At the time, Sanders introduced an amendment to raise minimum wage to $15 per hour. But the amendment was expected to fail after the Senate parliamentarian, who decides what legislation complies with reconciliation rules, found the wage increase in violation.  

Sanders had urged for the parliamentarian to be overruled. However, the amendment failed to pass after eight Democrats Republicans to vote down the proposal.  

Some Democrats say they could support Sanders’s new proposals, but they might not survive if they endanger the larger bill’s chances of passage, as Manchin and Sen. Kyrsten Sinema (D-Ariz.) have drawn bold red lines around certain measures. 

“I obviously will very likely agree with Senator Sanders’s bills, but we can’t do anything to endanger this base bill,” Sen. Cory Booker (D-N.J.) told The Hill on Thursday when pressed about Sanders’s comments. “And we’ve got to be very alert on that, because we’ve heard very clearly that a lot of our Democratic partners are not willing to support that.” 

“The outcome I’d like is for us to vote on the bill and get on with it really,” Sen. Mazie Hirono (D-Hawaii) told The Hill. “So, as much as I like Bernie and all that, I don’t know what his amendment is. It depends on what it is, I might vote for it.” 

Sen. Ben Cardin (D-Md.) also acknowledged the razor-thin majority Democrats has to work with in the Senate to pass the bill, while urging for the party to remain unified as they close in on the finishing line.  

“I think we recognize at the end of the day; we need 50 votes to pass this bill, and we’ll have a strategy for that to be effective,” Cardin told The Hill. “So, we recognize we may have some challenges with amendments, but at the end of the day, we all have to come together.” 

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Trump slams reconciliation deal, touts endorsements while taking jabs at Republican foes at rally

Former President Trump used his rally in Waukesha, Wis., on Friday evening to criticize Democrats’ sweeping climate, tax and health package while touting his track record of recent endorsements.

While Trump was in the Badger State to boost several of his endorsed candidates ahead of the Aug. 9 primary, including gubernatorial candidate Tim Michels (R) and Adam Steen, running in the 63rd Assembly District race against Wisconsin Assembly Speaker Robin Vos (R), the former president used the rally to take jabs at his opponents.

“The radical Democrats now intend to impose the biggest tax hike in American history, the exact opposite of what I did. And they are working feverishly to pile on more regulations at levels never seen before. You’re going to have regulations like nobody’s ever seen before,” Trump asserted, referring to the reconciliation deal.

He name-checked Senate Minority Leader Mitch McConnell (R-Ky.), claiming he got “taken for a ride” by Sen. Joe Manchin (D-W.Va.), who made a surprise announcement with Senate Majority Leader Charles Schumer (D-N.Y.) last week that they had reached a deal on climate, health and tax reforms. 

“Joe Manchin has totally sold out West Virginia, what he’s done to that state is disgraceful. And I told the old broken crow, Mitch McConnell, that this was going to happen,” Trump said.

Manchin had earlier in July appeared to pour cold water on the prospects of a deal after data was released showing inflation at 9 percent annually. 

When the deal was announced, after the Senate passed a bill to boost domestic semiconductor production and fund scientific research, some Republicans expressed frustration about the agreement, saying they would have blocked the chips and science bill if they knew Democrats were pressing forward provisions on taxes and climate in a reconciliation package.

Manchin claimed he and Schumer had not misled their colleagues.

The former president touted the recent successes of Arizona candidates Kari Lake (R) in the GOP gubernatorial primary and Blake Masters in the Republican Senate primary as well. 

He also mentioned Michigan gubernatorial candidate Tudor Dixon (R) and former Housing and Urban Development official John Gibbs (R), who defeated Rep. Peter Meijjer (R-Mich.), one of 10 House Republicans to vote in favor of impeaching Trump.

Trump called Michels, who is running against former Lt. Gov. Rebecca Kleefisch (R) in the gubernatorial primary next Tuesday, an “incredible success story” and touted his construction company.

He called Steen — a candidate he endorsed as part of a larger revenge tour against Republicans who he believes crossed him following the election and the Capitol riot — a “true patriot.” Vos, Steen’s opponent, drew Trump’s ire after he refused efforts to overturn the 2020 election.

As Trump took a few jabs at Kleefisch, he also appeared to subtly hit back at those who endorsed her, including former Vice President Pence.

“Tim’s opponent in the primary is Rebecca Kleesfisch, a career politician and a political insider. Known her for a long time. She’s the handpicked candidate of the failed establishment, the RINOs … the Washington swamp, and she’s running a campaign of falsehoods and lies,” he alleged, using the acronym for “Republican in name only.”

The former president even waded into House Speaker Nancy Pelosi’s (D-Calif.) trip to Taiwan, one of several stops she made in her travel to East Asia amid heightened tensions between China and the self-governing island, asking why she would travel to Taiwan.

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Over 1,400 US flights canceled Friday

More than 1,400 flights scheduled to take place Friday within, coming into or leaving the U.S. have been canceled, according to flight tracking website FlightAware, as airlines continue to struggle with timely departures this summer. 

Along with 1,482 cancelations, airlines had more than 7,000 delays on Friday within, into or out of the U.S. 

Among U.S. airlines, American Airlines had the most cancelations at 263 while Southwest was second with 193 cancelations. 

Airlines have been struggling this summer with persistent cancellations and delays that have left customers and lawmakers frustrated. 

Earlier this week, Democrats introduced the Cash Refunds for Flight Cancellations Act amid the flight disruptions.

The measure would require airlines to give customers cash refunds if their flights were canceled within 48 hours of their scheduled departure time. 

“Enough is enough: Travelers are sick of wasting their valuable time fighting the airlines to receive their legally-required cash refunds,” Sen. Ed Markey (D-Mass.) said in a statement. “And they are tired of making flight reservations months in advance, only to face a health scare that forces them to choose between canceling a nonrefundable flight, or traveling and risking the health of their fellow passengers.”

The flight cancellations and delays come as the airline industry has seen a rebound from earlier in the pandemic, with people traveling in greater numbers again as pandemic restrictions and fears ease in the U.S. 

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Pro-impeachment Republican Newhouse advances in Washington House primary

Rep. Dan Newhouse (R-Wash.) is projected to advance out of the primary in Washington state’s fourth congressional district, prevailing in the face of his vote to impeach former President Trump following the Jan. 6 insurrection.

The race was called by the Associated Press at 5:15 p.m. PDT.

Newhouse faced six Republican challengers, including top contenders Loren Culp, a former police chief who received a Trump endorsement for denying the validity of the 2020 election results, and former NASCAR driver Jerrod Sessler, who was in Washington, D.C. on Jan. 6.

Doug White, who runs a farm and restaurant, was the only Democrat running in the central state House district. Per Washington primary rules, the two candidates who receive the most votes on Tuesday will advance to the general election regardless of party, otherwise known as a jungle primary. 

Washington state Republicans had called on Newhouse, who has held office since 2014, to resign for his impeachment vote. He was one of 10 House Republicans to vote in favor of impeaching Trump.

The nonpartisan Cook Political Report rates the seat as “solid Republican.” 

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Hillicon Valley — Twitter confirms a bug was exploited  

Twitter confirmed on Friday that a bad actor gained access to personal information through a vulnerability discovered by the social media giant earlier this year. 

Meanwhile, Meta said it took down a Russian troll farm that tried to prop up support for the country’s invasion into Ukraine.  

This is Hillicon Valley, detailing all you need to know about tech and cyber news from Capitol Hill to Silicon Valley. Send tips to The Hill’s Rebecca Klar and Ines Kagubare. Someone forward you this newsletter? Subscribe here.

Hacker exploited a Twitter bug  

Twitter announced on Friday that a hacker exploited a bug in its system and was offering to sell personal data they had obtained. 

The bug in question allowed an individual to submit an email address or a phone number and learn which specific account was associated with the information entered. 

Twitter said that the vulnerability was first discovered in January but was quickly fixed, adding that there was no evidence at the time suggesting that personal information was compromised as a result of the bug.  

However, in July, Twitter was notified that someone had potentially exploited the vulnerability and was attempting to sell personal information. 

Read more here

Meta took down Russian troll farm 

Meta on Thursday announced it took down two cyber espionage operations in South Asia and a Russian troll farm that sought to prop up support for the country’s invasion of Ukraine. 

Meta, which owns platforms like Facebook and Instagram, announced the findings in its “Quarterly Adversarial Threat Report,” also detailing its efforts to combat coordinated schemes in places like Greece, India and South Africa. 

The company in particular highlighted its mitigation of a troll farm operated from
St. Petersburg, dubbed “Cyber Front Z,” that it said was linked to individuals associated with past activity by Russia’s Internet Research Agency (IRA), a troll farm that led the effort to spread disinformation around the 2016 U.S. presidential election. 

Meta said it began taking action against Cyber Front Z in March, shortly after Russia invaded Ukraine, and it took down the network in early April. 

Read more here.  

FEC SAYS GOOGLE CAMPAIGN EMAIL PLAN IS LAWFUL  

The Federal Elections Commission (FEC) said in a draft opinion published Wednesday that Google’s proposed plan to help keep campaign emails out of spam folders does not violate federal campaign finance law. 

In the draft opinion, FEC lawyers said that Google planned to offer a pilot program to test new Gmail design features, which include allowing campaign emails to bypass automated spam detection. 

“The Commission concludes that the proposed pilot program would be permissible under the Act and Commission regulations and would not result in the making of a prohibited inkind contribution,” the letter read. 

The FEC will vote on the draft on Aug. 11, according to commissioner Sean Cooksey. It must vote to adopt the opinion in order for Google to move forward with the plan. 

Read more here.  

HBO MAX, DISCOVERY PLUS TO MERGE 

The head of Warner Bros. Discovery’s streaming services announced on Thursday the company is merging HBO Max and Discovery+ into one streaming app next summer. 

During an earnings call, JB Perrette, CEO and president of global streaming and interactive for Warner Bros. Discovery, said launching HBO Max and Discovery+ as one packaged streaming service “was the only way we saw to make this a viable business,” according to Variety. 

“HBO will always be the beacon and the ultimate brand that stands for television quality,” Perrette said, but merging it with Discovery+ would ensure “there’s something for everyone in the household.” 

Read more here.  

BITS & PIECES

An op-ed to chew on: Time to finish: Congress needs to direct a space junk clean-up mission 

Notable links from around the web: 

What’s in a name? If the name is Meta, a lawsuit. (Protocol / Issie Lapowsky) 

Sex Workers Struggle to Get Vaccinated Against Monkeypox (Motherboard / Samantha Cole) 

📺 Lighter click: The real-life dramatic saga  

One more thing: Scenes from the Jones trial  

Far-right conspiracy theorist Alex Jones was ordered by a Texas jury on Thursday to pay the parents of a victim of the Sandy Hook Elementary School massacre
$4 million as part of a years-long legal battle stemming from his false statements about the shooting.  

During a trial that dominated news headlines this week, lawyers detailed how Jones had for years spread falsehoods about the mass killing on his online show and profited from them.  

The proceedings also featured a number of dramatic courtroom moments and unforeseen twists. 

Read about the moments here.  

That’s it for today, thanks for reading. Check out The Hill’s Technology and Cybersecurity pages for the latest news and coverage. We’ll see you next week.

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Energy & Environment — Sinema says yes to climate, tax deal 

Senators are preparing to vote on historic climate legislation after all 50 Democrats say “yes.” Meanwhile, China ceases climate and military cooperation with the United States over Speaker Nancy Pelosi’s (D-Calif.) trip to Taiwan.

This is Overnight Energy & Environment, your source for the latest news focused on energy, the environment and beyond. For The Hill, we’re Rachel Frazin and Zack Budryk. Someone forward you this newsletter? Subscribe here. 

Sinema announces agreement on reconciliation

Sen. Kyrsten Sinema (D-Ariz.) announced Thursday evening that she has reached a deal with Senate Majority Leader Charles Schumer (D-N.Y.) that could pave the way for Democrats to pass their budget reconciliation package.  

The deal would remove a provision closing the so-called carried interest loophole from the package announced last week by Schumer and Sen. Joe Manchin (D-W.Va.). 

Sinema said she and Schumer have also reached agreement on protecting manufacturing from the impact of a proposed 15 percent corporate minimum tax, which business leaders in Arizona warned would dampen economic growth.   

The announcement paves the way for Sinema to vote Saturday for a motion to proceed to a budget reconciliation package that would reform the tax code, tackle climate change, reduce the cost of prescription drugs and shrink the federal deficit.   

  • “We have agreed to remove the carried interest tax provision, protect advanced manufacturing, and boost our clean energy economy in the Senate’s budget reconciliation legislation,” Sinema said, signaling that she plans to vote to begin debate on the bill.   
  • “Subject to the parliamentarian’s review, I’ll move forward,” she said.   

A Democratic source familiar with the agreement said it would include a new excise tax on stock buybacks that would bring in more than enough revenue to cover the removal of the carried interest provision.   

Read more about the agreement here from The Hill’s Alexander Bolton.  

SENATE VOTES THIS WEEKEND, HOUSE NEXT WEEK  

The Senate is expected to take up the reconciliation bill in the coming days and the House is now slated to take on the fast-moving legislation next week. 

The Senate is expected to convene on Saturday. It’s not entirely clear when over the next few days the reconciliation bill will be voted upon, since lawmakers get up to

20 hours to debate the bill. After that, they’ll vote on a series of amendments, known as a vote-a-rama, before proceeding to the bill itself.  

The House is planning to reconvene next Friday and take up the Democrats’ sprawling climate, tax and health care bill, pending Senate passage of the multibillion-dollar package in the coming days.  

  • House Majority Leader Steny Hoyer’s (D-Md.) office sent out a floor update on Friday announcing that votes are expected on Friday, Aug. 12. The House is currently out of session for August recess. 
  • “Members are advised that pending Senate action on the Inflation Reduction Act of 2022, the House is expected to meet on Friday, August 12th, to consider the legislation,” the floor update reads. 

Read more about the Senate’s plans here from Alexander Bolton and the House’s plans here from Mychael Schnell.  

Reconciliation includes $4B for drought resilience 

The reconciliation package slated for a congressional vote this weekend includes $4 billion in new funding for the drought pummeling the western U.S. 

The package, dubbed the Inflation Reduction Act, includes the new funding specifically for the Bureau of Reclamation to address the 22-year drought, the worst to hit the region since the year 800, according to a statement from Sens. Michael Bennet (D-Colo.), Catherine Cortez Masto (D-Nev.) and Mark Kelly (D-Ariz.). 

  • “The Western United States is experiencing an unprecedented drought, and it is essential that we have the resources we need to support our states’ efforts to combat climate change, conserve water resources, and protect the Colorado River Basin,” the senators said in a statement. 
  • “This funding in the Inflation Reduction Act will serve as an important resource for Nevada, Arizona, and Colorado, and the work we’ve done to include it will help secure the West’s water future.” 

A Senate source familiar with the funding confirmed to The Hill the $4 billion is new funding. 

How we got here: After Senate Majority Leader Chuck Schumer (D-N.Y.) and Sen. Joe Manchin (D-W.Va.) came to an agreement on a climate and tax package, questions remained about Sinema’s stance. 

CNN reported this week that Sen. Kyrsten Sinema (D-Ariz.) wanted $5 billion in drought funding to be added to the package. 

Sinema spokesperson Hannah Hurley said that the additional drought funding played a role in the senator’s agreement to the deal.   

A source familiar with the negotiations said that numbers between $0 and $5 billion for drought resilience were on the table and that Bennet, Kelly and Cortez-Masto were integral in getting the $4 billion figure. 

The announcement comes as the drought takes an increasing toll on the region, causing two of the nation’s largest reservoirs, Lake Powell and Lake Mead, to plunge to record lows. 

Read more about the funding here.  

China suspends climate, other talks with the U.S. 

The Chinese Ministry of Foreign Affairs on Friday said that the country would halt its cooperation with the U.S. on military and climate matters in response to Speaker Nancy Pelosi’s (D-Calif.) trip to Taiwan. 

The foreign ministry announced eight “countermeasures” against Pelosi after she visited Taiwan “in disregard of China’s strong opposition and serious representations.” 

On the list of measures was “suspending China-U.S. talks on climate change.” 

China is the world’s largest source of planet-warming emissions, while the U.S. is the second-largest emitter.  

At last year’s global climate conference, American and Chinese officials said they would cooperate on regulations to cut emissions, encouraging electrification and deploying emissions-capturing technology.  

Read more about China’ actions from The Hill’s Chloe Folmar. 

KY FLOODS EXPECTED TO BRING HIGH COSTS 

Kentucky is facing enormous financial costs to rebuild after massive flooding in the eastern part of the state that has left 37 people dead and hundreds homeless.   

While the Federal Emergency Management Agency (FEMA) is still assessing the toll, Gov. Andy Beshear (D) said the state would need “significant dollars,” describing the disaster as “the most devastating flooding event our state has ever seen.”  

“When we look at infrastructure, when we look at the massive damage here – roads, bridges just eaten away, the water system just heavily damaged, some wiped out. It’s going to take significant time and significant dollars to restore what was destroyed. [There was] real significant damage to water and wastewater systems,” Beshear said Wednesday.  

  • Jonathan Jett, superintendent of public schools in Perry County, Kentucky, said in an interview with The Hill that he expects it will require millions of dollars to rebuild public infrastructure in his school district.  
  • “This will take years,” Jett said. “I have two schools with significant, significant damage. I’m waiting to hear from structural engineers and architects who are coming next Wednesday to see if we can even go back in the building. I’m not having people in there before I know it’s structurally sound.”  

One of the most potentially expensive consequences of this year’s Kentucky flooding is the damage to the state’s water and sanitation infrastructure, Beshear said. 

On Wednesday, he said there were “still just over 18,000 service connections without water, 45,600-ish service connections under boiled water advisory, [and] 21 water systems under limited operation due to power outages and storm damage.”  

The climate change tie-in: As climate change makes extreme weather worse and more frequent, there are expected to be more flooding events, and more intense weather events, in the future.  

Melissa Roberts, executive director of the American Food Coalition noted, however, that this isn’t just a future problem, saying the world has already seen the impacts in the last five to ten years.  

“We’re getting more devastating flood disasters, we’re getting them in more places, we’re getting them more frequently and the costs are rising,” she said. 

Read more about these costs here.  

WHAT WE’RE READING

  • How Republicans Are ‘Weaponizing’ Public Office Against Climate Action (The New York Times
  • Revealed: how climate breakdown is supercharging toll of extreme weather (The Guardian
  • Canada Says Ukraine Gas Route Isn’t Alternative to Nord Stream (Bloomberg
  • Coroner reveals new details about skeletal remains discovered at Lake Mead (8NewsNow

🔭 And finally, something offbeat and off-beatHow the sausage is made. 

That’s it for today, thanks for reading. Check out The Hill’s Energy & Environment page for the latest news and coverage. We’ll see you next week.  

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Minnesota jury rules that pharmacist who denied woman morning after pill didn't violate her rights

A jury in Minnesota ruled on Friday that a pharmacist did not commit discrimination when he did not fill an emergency contraception prescription for a woman after her prior contraceptive method failed, according to the gender advocacy group Gender Justice.

A jury in Aitkin County found that a pharmacist’s decision not to provide an emergency contraception prescription to Andrea Anderson, the plaintiff in the case, after citing his “beliefs” did not constitute discrimination.

According to court documents, Anderson went to the only pharmacy located in her town to retrieve a prescription of emergency contraception after another method failed, but the pharmacist there rejected her request.

The filing further claims that she would later have to drive more than 100 miles in total in order to get her morning after pill after experiencing several pharmacies reject her request.

Anderson was awarded $25,000 over emotional harm caused by the initial pharmacist who rejected to fill the prescription.

“I can’t help but wonder about the other women who may be turned away,” Anderson said in a statement. 

“What if they accept the pharmacist’s decision and don’t realize that this behavior is wrong? What if they have no other choice? Not everyone has the means or ability to drive hundreds of miles to get a prescription filled.”

The legal director for Gender Justice, which is representing Anderson, said it plans to appeal the decision.

“To be clear, the law in Minnesota prohibits sex discrimination and that includes refusing to fill prescriptions for emergency contraception,” Gender Justice Legal Director Jess Braverman said in a statement. “The jury was not deciding what the law is, they were deciding the facts of what happened here in this particular case.”

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Health Care — Senators prepare for reconciliation fight

Majority Leader Charles Schumer (D-N.Y.)
Majority Leader Charles Schumer (D-N.Y.) addresses reporters during a press conference on Friday, August 5, 2022 to discuss The Inflation Reduction Act and this weekend’s session.

Only in LA can you find places like this Beverly Hills bistro that’s been turned into the set of “The Golden Girls.” And yes, they serve plenty of cheesecake. 

On the health care front, it’s going to be a long weekend, so get ready for plenty of amendment votes! Senate Democrats will be convening over the weekend to take up a bill that could be the most transformative effort since the Affordable Care Act. 

Welcome to Overnight Health Care, where we’re following the latest moves on policy and news affecting your health. For The Hill, we’re Peter SullivanNathaniel Weixel and Joseph Choi.

How the battle over Democrats’ bill will play out 

Senate Democrats are girding themselves for a battle royal with Republicans over a 700-plus-page bill that will reform the tax code, tackle climate change, lower drug costs and reduce the deficit in hopes of delivering what would become President Biden’s centerpiece legislative achievement.   

While the $1.9 trillion American Rescue Plan that Democrats enacted last year was a bigger bill in terms of dollars spent, the Inflation Reduction Act will deliver on what Democrats have promised for years.   

What’s on the table: It would require profitable corporations to pay more in taxes, reduce carbon emissions and slow climate change, lower the price of many prescription drugs and preserve the affordability of Affordable Care Act health plans. 

Saturday’s schedule: The Senate will convene at noon on Saturday and hold a vote at 12:30 pm on a motion to discharge a nominee to serve as assistant administrator of the Environmental Protection Agency out of committee. This will serve as an attendance vote to make sure all 50 members of the Democratic caucus are present.

  • At some point later in the day, the Senate will vote on the motion to proceed to the Inflation Reduction Act, which is expected to break down strictly along party lines.   
  • That would then trigger up to 20 hours of debate on the bill, which could stretch late into the evening or past midnight Saturday. The 20 hours of debate would be evenly divided between the parties.   
  • And at some point, Schumer will have to finish negotiating some of the provisions of the bill that were still unresolved Friday afternoon.

Read more here

AARP, Big Pharma locked in battle over drug pricing 

The nation’s largest seniors group is locked in a battle with the pharmaceutical industry over Democrats’ drug pricing overhaul.   

AARP is blanketing the airwaves with ads backing the measure to counter drugmakers’ efforts to pressure key Democrats to vote “no” on the measure which would lower prescription drug prices.   

Rallying efforts: It’s also mobilizing its nearly 38 million members to lobby their representatives on the drug pricing plan.  

“We’ve been hearing for decades from our members who are struggling to afford their prescription drugs,” said Bill Sweeney, AARP’s senior vice president of government affairs. “We know that pharma has a lot of lobbyists and a lot of money, but we have a lot of people.”  

The group says its members have sent more than 8 million calls and emails to lawmakers urging them to lower prescription drug costs. Through the end of this week, AARP is airing a $1 million D.C.-based ad campaign boosting senators who are “standing up to Big Pharma.” 

  • Democrats’ drug pricing plan — which is included in their climate and tax spending package headed for a potential Senate vote this weekend — would empower Medicare to negotiate and ultimately bring down the price of certain popular drugs, prevent huge price hikes and cap out-of-pocket costs for seniors on Medicare at $2,000 per year.   
  • While the plan is weaker than some of Democrats’ previous proposals, it would dent drugmaker profits, dealing a rare blow to the influential industry. 

Read more here

BIDEN TESTS COVID-19 POSITIVE FOR ONE STRAIGHT WEEK

President Biden tested positive for COVID-19 again on Friday, and his cough is “almost completely resolved,” his physician, Kevin O’Connor, said. 

Biden “continues to feel very well” despite his rebound COVID-19 infection, O’Connor wrote. Such rebound infections have been seen in some patients who take the antiviral treatment Paxlovid. 

“His temperature, pulse, blood pressure, respiratory rate and oxygen saturation remain entirely normal,” O’Connor wrote. “This morning, his SARS-CoV-2 antigen testing remained positive.” 

“His temperature, pulse, blood pressure, respiratory rate and oxygen saturation remain entirely normal,” O’Connor wrote. “This morning, his SARS-CoV-2 antigen testing remained positive.” 

Tentative travel plans: The White House earlier on Friday announced a trip to Kentucky, where the president would survey damage caused by deadly floods. The White House has said Biden needs to test negative in order to get out of isolation. 

Read more here

MAN GETS 3-YEAR SENTENCE FOR THREATS AGAINST FAUCI, OTHERS

A West Virginia man on Thursday was sentenced to 37 months in federal prison after making threats to White House chief medical adviser Anthony Fauci and others. 

Thomas Patrick Connally Jr. will spend three years in prison followed by three more years of supervised release for his threats against Fauci, former National Institutes of Health (NIH) Director Francis Collins, Health and Human Services Assistant Secretary for Health Rachel Levine, a Massachusetts public health official and a religious leader. 

U.S. District Judge Paula Xinis sentenced Connally after he pleaded guilty for using an anonymous email to make gruesome threats against Fauci and others in late 2020 through mid-2021. 

One email to Fauci said that he and his family would be “dragged into the street, beaten to death, and set on fire.” 

Connally also threatened to attack and kill Collins and his family if he continued to promote mandatory vaccinations for COVID-19. 

“Connally admitted that he sent the threats to Drs. Fauci and Collins with the intent to intimidate or interfere with the performance of their official duties and with the intent to retaliate against Dr. Fauci and Dr. Collins for performing their official duties, including discussing COVID-19 and its testing and prevention,” wrote to the Justice Department. 

Read more here

House looks to take up Democrats’ bill next Friday 

The House is planning to reconvene next Friday and take up the Democrats’ sprawling climate, tax and health care bill, pending Senate passage of the multibillion-dollar package in the coming days. 

House Majority Leader Steny Hoyer’s (D-Md.) office sent out a floor update on Friday announcing that votes are expected on Friday, Aug. 12. The House is currently out of session for August recess. 

“Members are advised that pending Senate action on the Inflation Reduction Act of 2022, the House is expected to meet on Friday, August 12th, to consider the legislation,” the floor update reads. 

“Members are further advised the House is expected to meet at 9:00 a.m. for legislative business, and multiple vote series are expected,” the memo adds. 

The Senate is expected to pass the bill, titled the Inflation Reduction Act, in the coming days.  

Once the bill hits the House, it is expected to pass and head to President Biden’s desk for final signature.  

“The Democratic Congress will soon pass our historic Inflation Reduction Act, taking bold action to bring down the kitchen table costs – from health care premiums to prescription drug costs to energy prices – while closing tax loopholes and paying down the deficit,” Speaker Nancy Pelosi (D-Calif.) said in a statement on Friday that applauded the July jobs report. 

Read more here

WHAT WE’RE READING

  • Cognitive rehab may help older adults clear covid-related brain fog (Kaiser Health News
  • Why monkeypox vaccine shortage may threaten the immunocompromised (The New York Times
  • Novavax’s COVID-19 vaccine rollout off to sluggish start with just 7,000 doses in arms (ABC News

STATE BY STATE

  • Polio found in sewage samples outside New York City suggests it’s spreading in the community, health officials says (CNBC
  • Confusion roiled Michigan for days as abortion rights changed hour to hour (NPR
  • Abortions are widely available in California, but not for these women (LA Times
  • 5th abortion clinic opened in Kansas in lead up to vote (Associated Press

That’s it for today, thanks for reading. Check out The Hill’s Health Care page for the latest news and coverage. See you next week.

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Alex Jones required to pay $45.2 million in punitive damages to Sandy Hook parents

A Texas jury ordered conspiracy theorist Alex Jones to pay $45.2 million in punitive damages to the parents of a Sandy Hook Elementary School shooting victim on Friday, just one day after the jury decided on separate compensatory damages. 

“I’ll take it!” the attorney for the parents Scarlett Lewis and Neil Heslin said after the figure was reached on Friday, according to The New York Times

Lewis and Heslin, whose son Jesse Lewis was one of close to two dozen children who died in the shooting, sued Jones’s media company Free Speech Systems and the conspiracy theorist himself for defamation, according to The Associated Press.

A jury on Thursday ordered Jones, who has baselessly claimed that the 2012 school shooting was a hoax, to pay over $4 million in compensatory damages.

Jones has pushed false claims about the school shooting, including alleging that no children died in the massacre. 

“I wanted to tell you to your face because I wanted you to know that I am a mother first and foremost. And I know that you are a father. And my son existed,” Lewis told Jones during the trial.

“And I don’t understand. Truth, truth is so vital to our world. Truth is what we base our reality on, and we have to agree on that to have a civil society. Sandy Hook is a hard truth. Hard truth. Nobody would want to ever believe that 26 kids could be murdered.” 

“I unintentionally took part in things that did hurt these people’s feelings,” Jones said at one point in the trial, according to the AP. 

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On The Money — How Senate Dems got Sinema's support

We’ll break down how Democrats found a way to get Sen. Kyrsten Sinema (D-Ariz.) on board with a major health care, climate and tax deal. We’ll also look at a stellar July job gain and the steep costs of Kentucky floods. 

But first, some celestial chorizo

Welcome to On The Money, your nightly guide to everything affecting your bills, bank account and bottom line. For The Hill, we’re Sylvan Lane, Aris Folley and Karl Evers-Hillstrom. Someone forward you this newsletter? Subscribe here.

Dems add and subtract to win Sinema over

Democrats are including a tax on stock buybacks to make up for the revenue lost in their climate change package to win over Sen. Kyrsten Sinema (D-Ariz.), whose vote is a necessity to advance a centerpiece of President Biden’s economic agenda.  

  • Senate Majority Leader Charles Schumer (D-N.Y.) said Friday that the buyback tax will raise $74 billion, more than making up for the loss of a $14 billion tax on carried interest and a $55 billion tax on depreciation costs that were mandated by Sinema.  
  • “I believe strongly in [closing] the carried interest loophole. I have voted for it. I pushed for it, I pushed for it to be in this bill. Sen. Sinema said she would not vote for the bill, not even move to proceed, unless we took it out. So we have no choice,” Schumer said.   

Still, Schumer expressed confidence that all Democrats would support the stock buyback tax and noted that it’s particularly popular with progressive lawmakers.  

The background: The concessions to Sinema were tax breaks favored by the private equity industry and the U.S. manufacturing sector.  

Democrats needed to ensure that they could replace that tax revenue to fund their green energy and health care policies and significantly reduce the federal deficit, a key priority for centrist Sen. Joe Manchin (D-W.Va.), who privately negotiated the initial deal with Schumer.  

Karl and The Hill’s Tobias Burns have more here. 

Read more about the revamped Inflation Reduction Act:  

  • The U.S. Chamber of Commerce on Friday cheered Sen. Kysten Sinema (D-Ariz.) for softening her party’s corporate minimum tax measure but criticized a new stock buyback tax proposal included in the Inflation Reduction Act.  
  • How the battle over the Democrats’ climate, tax and health bill will play out. 
  • Republicans are sharpening their knives while the Senate prepares to hunker in for a long weekend as Democrats deploy a special process to pass the party’s sprawling health care, tax and climate plan without buy-in from across the aisle. 
  • House looks to take up climate, taxes, health care bill next Friday

HOW DID THIS HAPPEN?

Economy adds whopping 528K jobs in July, shattering expectations 

The U.S. added 528,000 jobs and the unemployment rate fell to 3.5 percent in July, according to data released Friday by the Labor Department, a stunning gain that defied predictions of a slowdown. 

  • Economists expected the U.S. to have added roughly 250,000 jobs in July and keep the jobless rate at 3.6 percent, according to consensus estimates released before the report. 
  • But the economy added more than double the number of jobs experts predicted, even as consumer confidence plunged and gross domestic product shrank over the first half of the year.  
  • The jobless rate also returned last month to its pre-pandemic level of
    3.5 percent, which in February 2020 set a 50-year low for unemployment. 

The stunning July jobs gain will raise questions about how close the U.S. economy actually is to a recession after months of growing concern over a sharp slowdown.
The resilience of the labor market also means the Federal Reserve may have more room — or at least feel more pressure — to rapidly raise interest rates and fight inflation without fears of triggering steep job losses. 

Sylvan breaks it down here.  

Read more: Biden takes victory lap on job numbers 

‘THIS WILL TAKE YEARS’

Kentucky expected to face enormous costs after devastating floods 

Kentucky is facing enormous financial costs to rebuild after massive flooding in the eastern part of the state that has left 37 people dead and hundreds homeless.   

While the Federal Emergency Management Agency (FEMA) is still assessing the toll, Gov. Andy Beshear (D) said the state would need “significant dollars,” describing the disaster as “the most devastating flooding event our state has ever seen.”  

Jonathan Jett, superintendent of public schools in Perry County, Ky., said in an interview with The Hill that he expects it will require millions of dollars to rebuild public infrastructure in his school district.  

“This will take years,” Jett said. 

Here’s more from The Hill’s Rachel Frazin and Tobias. 

TOUGH PILL TO SWALLOW

AARP, Big Pharma locked in battle over drug pricing bill 

The nation’s largest seniors group is locked in a battle with the pharmaceutical industry over Democrats’ drug pricing overhaul.   

  • AARP is blanketing the airwaves with ads backing the measure to counter drugmakers’ efforts to pressure key Democrats to vote “no” on the measure which would lower prescription drug prices.   
  • It’s also mobilizing its nearly 38 million members to lobby their representatives on the drug pricing plan.  

“We’ve been hearing for decades from our members who are struggling to afford their prescription drugs,” said Bill Sweeney, AARP’s senior vice president of government affairs. “We know that pharma has a lot of lobbyists and a lot of money, but we have a lot of people.” 

Karl tells us more here

Good to Know

Sen. Ron Johnson (R-Wis.) said Wednesday that Social Security and Medicare should be up for congressional approval each year, instead of staying under their current status as federal entitlement programs. 

“Social Security and Medicare, if you qualify for the entitlement, you just get it no matter what the cost,” Johnson said in an interview that aired Tuesday on “The Regular Joe Show” podcast. 

Here’s what else have our eye on: 

  • The Chinese Ministry of Foreign Affairs on Friday said that the country would halt its cooperation with the U.S. on military and climate matters in response to Speaker Nancy Pelosi’s (D-Calif.) trip to Taiwan. 
  • Defense Secretary Lloyd Austin has turned down a request from Washington, D.C., Mayor Muriel Bowser (D) to deploy the National Guard to help with migrants being bussed into the city from Texas and Arizona, a defense official told The Hill. 

That’s it for today. Thanks for reading and check out The Hill’s Finance page for the latest news and coverage. We’ll see you next week. 

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