Spiegel Stuff: CORRECTED: The Hill's Morning Report — Sponsored by PhRMA — Trump caves on separating children from parents at border | Lawmakers scramble over fallout from Trump immigration reversal | Ryan and Meadows clash on House floor | Trump rallies supporters in Minnesota | GOP immigration bills lacking votes | Democrats maintain enthusiasm, generic ballot advantage ahead of midterms | Senate rejects Trump’s spending clawback efforts

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As a Medicare Part D Cliff looms for seniors, the program's successful structure is also in jeopardy. Congress can act now to protect seniors from the donut hole suddenly increasing by more than $1,200, and secure the program for the future by fixing changes that undermine its successful competitive structure.

LEADING THE DAY

CONGRESS: Meanwhile, the House is set today to consider separate immigration measures distinct from the "zero tolerance" backlash. It's possible neither has the votes to pass, and the reluctance of Senate Republicans to act before the November elections means there is almost zero chance that proposed changes, for instance to help so-called Dreamers, become law in 2018.

Senate GOP – immigration: The Hill: Senate Republicans say legislation is still needed to address the overflow of detained immigrants at the border after Trump's executive order on Wednesday. GOP senators, however, would need support from Democrats to get a bill to the president's desk. They assert this is unlikely.

House GOP – immigration: The Hill: Ahead of critical votes scheduled today in the House, the president, Cabinet officials and Republican leaders launched a full-court press for an immigration measure designed to win backing from centrist Republicans and perhaps some conservative members. Passage is uncertain. Rank-and-file members initially spearheaded the push as a way to challenge House GOP leaders, hoping to force floor action to help beneficiaries of the embattled Deferred Action for Childhood Arrivals program. The votes got off to an inauspicious start on Wednesday, when Meadows got into a heated exchange over immigration with Speaker Paul Ryan (R-Wis.) on the House floor (The Hill).

Senate – spending: The Hill: Trump lost his bid, supported with gusto by some House conservatives, to cancel government spending approved and enacted several months ago. The Senate on Wednesday narrowly rejected a proposal to claw back roughly $15 billion in spending approved by Congress earlier this year. Conservatives hoped the plan might enhance the GOP's appeal to voters as the fiscally conservative party.

Congress – rules changes: The Hill: The centrist No Labels organization wants the next House Speaker to pledge to back changes to congressional rules that might foster more bipartisanship and participation by rank-and-file lawmakers. No Labels plans to unveil its good-government proposals and is pitching ideas to lawmakers, looking to 2019.

Congress - insulin: The Hill: Rising insulin costs have attracted bipartisan scrutiny in Congress. Three companies control 99 percent of the world's insulin, leading to calls from lawmakers for greater transparency and federal oversight in the market for a drug needed by more than 30 million people in the U.S. with diabetes.

Congress – Chinese research in U.S.: The Washington Post reports that members of Congress want the Education Department and Secretary Betsy DeVos to investigate Chinese research partnerships at U.S. colleges and universities to determine if they pose national security risks. A bipartisan group of 26 lawmakers want to know more about Chinese telecom company Huawei's research partnerships and other relationships with several dozen American colleges and universities.

Congress – Space Force: The Hill: It will be up to Congress to weigh Trump's renewed push for a military "space force." But the idea, which requires statutory approval, is facing roadblocks in Congress and at the Pentagon.

****

CAMPAIGNS & POLITICS: Trump rallied supporters in Duluth, Minn. last night. It was a campaign rally, so the president predictably attacked the "elites," the "fake news" media, taunted a protester and oversaw a crowd chanting "CNN sucks."

But it was also a big event attended by thousands in a state that Trump nearly won in 2016.

Democrat Hillary Clinton carried the state by just more than 1 point and Republicans have a major pick-up opportunity in the House in the 8^th District, where Trump visited.

The president brought on stage Republican Pete Stauber, who is running for the open seat in a district that Trump carried by 16 points in 2016. The Cook Political Report rates that race a toss-up.

There are also two Senate races in Minnesota this year, although Cook has both leaning Democratic.

"We need more Republicans, we gotta get out there in the midterms." – Trump.

The rally comes as The Hill's Reid Wilson reports that voters are more energized about showing up at the polls this November than they have been for any recent midterm election (The Hill). A lot of that energy is coming from the left in opposition to the president.

A few polls…

CNN: Support for Democrats ticks up and they retain enthusiasm advantage.

Monmouth University: Sen. Joe Manchin (D-W.Va.) leads his GOP rival by 9 points.

From the campaign trail … Former New York City Mayor Michael Bloomberg (I) will spend $80 million this election cycle, most of it going to help congressional Democrats retake the House (The New York Times) … Arizona's Senate GOP primary is pushing Rep. Martha McSally to the right on immigration (The Hill) … Former Trump attorney Michael Cohen has resigned from his post as deputy finance chairman of the Republican National Committee (ABC News) … Republican National Committee chairwoman, Labor secretary cancel on Latino conference (Politico).

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IN FOCUS/SHARP TAKES

➔ WHITE HOUSE & ADMINISTRATION:

U.S. Census Bureau: The Hill: New census figures show booming growth among minority populations, while the white-alone population declines, hastening a demographic overhaul that is reshaping the face of America. One other trend: the Midwest is getting notably younger.

Labor and Education Departments: The administration is expected today to propose a government reorganization that would merge the Labor and Education departments into one federal agency, The Washington Post reports. The government overhaul plan would shrink some departments, such as the Office of Personnel Management, and propose altering some of the bureaucracy, including consolidating federal safety net programs for the poor. The Clinton, Bush and Obama administrations also sought to reorganize elements of the federal bureaucracy, with limited success, because Congress has to approve the ideas, along with federal unions. In the Trump administration, the Office of Management and Budget is spearheading the proposals.

State Department - Trade: The Wall Street Journal reports that U.S. Ambassador to Germany Richard Grenell brought to the Trump administration on Wednesday a proposal from Berlin for an industry trade pact. Germany's leading automakers have thrown their support behind scrapping all import tariffs for cars between the European Union and the U.S. in an effort to find a peaceful solution to a brewing trade war.

Environmental Protection Agency: The Hill: Administrator Scott Pruitt is still the recipient of public warnings from GOP backers on Capitol Hill, who are concerned about the investigations and media attention his management decisions have sparked. Fellow Oklahoman Sen. James Inhofe (R) says Pruitt got the message and has changed his ways. "There are probably times when he displayed questionable judgment," said the senator, who met with his longtime friend on Tuesday evening.

West Wing – Middle East: The Hill: Trump senior adviser and son-in-law Jared Kushner met with Crown Prince Mohammad Bin Salman in Saudi Arabia on Wednesday to discuss a Middle East peace plan. Kushner was joined by U.S. Middle East envoy Jason Greenblatt. The Associated Press: Trump's Mideast team gets close-up view of peace obstacles.

West Wing - Russia: National Security Adviser John Bolton plans to travel to Moscow to prepare for a likely meeting between Trump and Russian President Vladimir Putin, Reuters reports, citing information reported today by the Interfax news agency. Both leaders have said they would like to meet soon, likely next month (The Hill).

OPINION

The science behind how family separation harms children, by Katharine Yun, pediatrician at The Children's Hospital of Philadelphia, opinion contributor with The Hill. https://bit.ly/2lpc1jQ

What the news media aren't telling you about immigration, by Kayleigh McEnany, spokeswoman for the Republican National Committee, opinion contributor with The Hill. https://bit.ly/2K2GD8L

WHERE AND WHEN

The House convenes at 9 a.m. Votes are expected on two GOP-drafted immigration measures.

The Senate convenes at 9:45 a.m. and resumes consideration of the appropriations measure on Energy and Water, Legislative Branch, Military Construction and VA.

The president holds a meeting of his Cabinet. He has a working lunch with invited governors. In the afternoon, Trump meets with Secretary of State Mike Pompeo, followed by Secretary of Defense James Mattis. (The White House picnic for Congress and family members, scheduled tonight on the first day of summer, was "postponed" on Wednesday by the president. A new date was not announced.)

ELSEWHERE

> German Chancellor Angela Merkel approaches a moment of reckoning, The Financial Times opinion. "On the big issues of the day — eurozone reform and migration — there is little room left for Germany's chancellor to procrastinate, and all of her options are politically risky."

> U.S. prepares for return of war dead remains from North Korea, by Lolita C. Baldor, The Associated Press. "More than 36,000 U.S. troops died in the conflict, including those listed as missing in action. Close to 7,700 U.S. troops remain unaccounted for from the Korean War, and about 5,300 of those were lost in North Korea."

> The `Holy Grail' of baseball cards will be on display next month in Colorado, The Denver Post. Condition is what makes this particular Mickey Mantle card worth millions of dollars to memorabilia collectors.

THE CLOSER

And finally … this week's Morning Report QUIZ CONTEST reflects Washington's sudden preoccupation with hearts. See if you can match these speakers with their immigration-related statements, and those of you with correct answers will take a bow in tomorrow's newsletter as particularly astute news consumers this week. Email guesses to jeasley@thehill.com or asimendinger@thehill.com, and please put "Quiz" in the subject line.

A) Melania Trump, through her spokeswoman
B) Sen. Ted Cruz (R-Texas)
C) President Trump
E) Former first lady Laura Bush
G) Senate Minority Leader Charles Schumer (D-N.Y.)

"I appreciate the need to enforce and protect our international boundaries, but this zero tolerance policy is cruel. It is immoral. And it breaks my heart."
"We need to be a country that follows all laws, but also a country that governs with a heart."
"There's no doubt the images that we've seen of children and children being separated from their parents are heartbreaking. They were heartbreaking when Obama was president."
"Mr. President, have a heart for a change. Take that goddamn pen of yours and do away with this horrendous, inhumane policy of yours that rips children from the arms of their parents."
"You have people that want absolute security and safety, and you have people that do look at the children, and then you have people like me, and I think most of the people in this room, that want both. We want the heart, but we also want strong borders, and we want no crime. We don't want crime in this country. We don't want people coming in."

The Morning Report is created by journalists Jonathan Easley jeasley@thehill.com & Alexis Simendinger asimendinger@thehill.com. Suggestions? Tips? We want to hear from you! Share The Hill's reporting and newsletters, and encourage others to SUBSCRIBE!