Trump and Schumer head for a high-stakes rematch
The high-stakes battle to keep the federal government open past Sept. 30 will depend on two men coming to terms: Donald Trump and Chuck Schumer.
If last week's clash is any indication, it won't be easy.
As Jordain Carney reports, despite decades of history between the president and Senate minority leader, their relationship is now almost nonexistent. The pair haven't had a one-on-one meeting since Trump's second inauguration, nor did they speak directly as negotiations unraveled over a pre-summer-recess nominations package, according to two people granted anonymity.
There's concern on Capitol Hill about what is to come in September when, inevitably, Schumer mulls a Democratic filibuster and Trump debates whether to sign any shutdown-averting bill.
'It would be better if those two negotiated,' Sen. Kevin Cramer said of the pair. Senate Majority Leader John Thune, Cramer said, was left to act as 'arbitrator' ferrying between the 'bare-knuckled' New Yorkers.
The failure of negotiations was fueled by the White House's hesitation to unfreeze congressionally approved spending in exchange for fast-tracking Trump's nominees.
Democrats think the onus is on Thune and House Speaker Mike Johnson to get Trump to come to the table in the looming shutdown talks. In closed-door caucus meetings, Democrats have been gaming out scenarios and discussing what demands to make in exchange for their votes to fund the government.
Sen. Elissa Slotkin said at a town hall Monday she wouldn't vote for the funding bill in September unless Republicans 'do something to restore some of the cuts' related to health care included in the recently passed megabill.
Thune acknowledges that direct negotiations between Trump and Schumer are going to be essential to any deal.
'At some point ... on some of these things where we need 60 [votes], there are going to have to be conversations,' he said in a brief interview.
GOOD TUESDAY MORNING. Email us: crazor@politico.com, mmccarthy@politico.com and bguggenheim@politico.com.
THE LEADERSHIP SUITE
Jeffries calls for 'extraordinary response' to Texas redistricting
House Minority Leader Hakeem Jeffries called Texas' attempt to redistrict an 'all hands on deck' moment for Democrats and showed his support for Democratic governors who are exploring new map options.
'This moment does require, you know, an extraordinary response because this is an extraordinary act,' Jeffries told CNN's Wolf Blitzer Monday.
Jeffries said he appreciated the efforts of New York Gov. Kathy Hochul, California Gov. Gavin Newsom and Illinois Gov. JB Pritzker, who are discussing redistricting options in their states to counter the Texas GOP's redistricting plan, done at Trump's behest.
Democrats in the Texas legislature fled the state over the weekend to blue states, including New York, in an attempt to block Republicans. Texas Gov. Greg Abbott said Democrats 'forfeited their seats' by leaving the state. Jeffries called Abbott's comments 'idle threats' and said he is 'all hat, no cattle.'
'It's an all-hands-on-deck moment for us,' Jeffries said. 'That means House Democrats, Senate Democrats, Democratic governors, Democratic members of the state legislature, Democratic attorney generals, but most importantly, the American people.'
GOP's megabill sales pitch meets early jeers
The House Republican push to sell Trump's megabill over August recess hit an early speed bump during Rep. Mike Flood's town hall Monday night.
Flood endured loud boos during the Q&A at the University of Nebraska-Lincoln after he deployed such GOP talking points as, 'If you choose not to work, you do not receive free health care,' and 'This bill protects Medicaid from the future.'
Much of the pushback revolved around whether Republicans were willing to challenge any aspects of Trump's agenda. 'Who do you work for?' one audience member asked.
The contentious town hall came after the state Democratic Party advertised the event on social media, encouraging attendees to ask about health care cuts.
POLICY RUNDOWN
RSC TO HOLD 'RECONCILIATION 2.0' BRIEFING — The House Republican Study Committee will host GOP staff Wednesday for a discussion on crafting a second megabill, according to an invite seen by Benjamin.
The briefing will be held in-person, and aides will hear from leaders of the Economic Policy Innovation Center, a conservative think tank, including executive vice president Brittany Madni, director of budget policy Matthew Dickerson and senior analyst in fiscal policy David Ditch.
The RSC kicked off its 'Reconciliation 2.0' working group last month to help develop recommendations for another party-line domestic policy package, which Republicans want to consider this fall.
TREASURY NOMS HELD UP OVER GREEN CREDITS — Sens. Chuck Grassley and John Curtis have placed holds on three of Trump's Treasury nominees in protest of the administration's effort to curtail renewable energy projects, Kelsey Tamborrino and Josh Siegel report. They include the nominations of Brian Morrisey for general counsel, Francis Brooke for assistant secretary and Jonathan McKernan for undersecretary.
It marks a significant escalation in efforts by some Senate Republicans to ensure that the administration adheres to more flexible guidelines around solar and wind tax credits. Trump issued an executive order in July that appeared to make it more difficult to access those credits — something members of the House Freedom Caucus demanded in exchange for their votes on the megabill.
The credits were established by the Democrats' 2022 climate law but have been benefiting many red districts and states. Concerned senators have so far been unable to schedule meetings with administration officials to clarify the consequences of Trump's latest actions.
CBO'S FINAL MEGABILL SCORE — The Congressional Budget Office estimates the megabill will increase the federal deficit by $4.1 trillion, Jennifer Scholtes reports.
The legislation would increase interest payments on the federal debt by $718 billion over a decade — a considerable increase from the $440 billion the nonpartisan congressional scorekeeper estimated back in June.
Republicans, however, have largely dismissed CBO's findings surrounding the massive tax and spending package, arguing the scores don't adequately consider economic growth juiced from the permanent extension of Trump's expiring tax cuts.
Best of POLITICO Pro and E&E:
THE BEST OF THE REST
Democrats Plan to Spend Tens of Millions of Dollars to Fund Hundreds of Content Creators, from Nick Gilbertson at Breitbart
Mitch McConnell's legacy comes under fire in Kentucky race to replace him in the Senate, from Bruce Schreiner at AP
THE CARRYOUT
Welcome back to your Inside Congress hosts' favorite recess activity: sharing lawmakers' Capitol Hill food recommendations.
Rep. Greg Stanton said he's a fan of Longworth's chicken Caesar salad — just make sure to add jalapeños. He said it's his go-to on a fly-out day.
What's your favorite fly-out day meal? Email us: mmccarthy@politico.com and crazor@politico.com.
CAMPAIGN STOP
MACE IS IN — Rep. Nancy Mace has officially entered the South Carolina gubernatorial race. She joins a crowded GOP primary that includes fellow Rep. Ralph Norman, Lt. Gov. Pamela Evette and state Attorney General Alan Wilson, the son of Rep. Joe Wilson.
AND SO IS DEREK DOOLEY — Former college football coach Derek Dooley entered the crowded Republican contest in Georgia for the chance to challenge Sen. Jon Ossoff, Brakkton Booker reports. GOP Reps. Mike Collins and Buddy Carter are already in the race.
Several Georgia Republicans told Brakkton that Dooley is not well known within the state's political circles and was recruited by Gov. Brian Kemp. The son of the famous University of Georgia coach Vince Dooley, Derek previously coached at the University of Tennessee and Louisiana Tech.
MUSK-BACKED GROUP PROMOTES MEGABILL — Building America's Future, a dark-money group that has been supported by Elon Musk, is shelling out more than $1 million to promote White House wins including the megabill, Gregory Svirnovskiy reports.
The group doesn't agree with Musk's characterization of the bill as 'a disgusting abomination.' The Tesla CEO promised to fund primary challenges to Republicans who supported it.
Generra Peck, a senior adviser to the group, said 'we could not be more proud to stand with an administration and GOP Congress that is truly building a brighter future for America.'
CAPITOL HILL INFLUENCE
The Information Technology Industry Council is beefing up its lobbying team with a pair of former Republican Hill aides, POLITICO Influence reports. Stephanie Patel, a former staffer for the Senate Commerce Committee, and Noah Barger, former deputy chief of staff to Rep. Mike Bost, will be directors of government affairs for the trade association, whose members include Google, Apple, Amazon, Anthropic, Intel, Adobe, Microsoft and Meta.
JOB BOARD
The Center for Strategic and International Studies is launching a new cyber task force to be led by Josh Stiefel, a former professional staff member with the House Armed Services Committee.
HAPPY BIRTHDAY
Ryan Wrasse of Thune's office (4-0) … former Rep. Mike Doyle … Puerto Rico Gov. Jenniffer González-Colón … Blake Masters … Nick Raineri … Crooked Media's Matt Berg … Kristofer Eisenla … Boston Globe's Jim Puzzanghera … Meta's Monique Dorsainvil … Cicely Simpson … Molly Donlin of Regent Strategies … Caroline Ehlich … Mark Brunner of PsiQuantum … Katie Vlietstra Wonnenberg of Public Private Strategies
TRIVIA
MONDAY'S ANSWER: Frank Gallegos correctly answered that Theodore Roosevelt was the first U.S. president to fly in a plane.
TODAY'S QUESTION, from Mia: Who was the first president to fly in a plane while serving as president?
The first person to correctly guess gets a mention in the next edition of Inside Congress. Send your answers to insidecongress@politico.com.
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