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MORNING REPORT

Thursday, July 27

by Alexis Simendinger & Kristina Karisch

GOP split on McCarthy's fervor for the 'I word'

Georgia Rep. Marjorie Taylor Greene (R) began agitating to impeach President Biden almost as soon as he took the oath of office. House Speaker Kevin McCarthy (R-Calif.), a Greene ally and supporter of former President Trump, rhetorically caught up this week.

He says a House impeachment inquiry examining Biden and Hunter Biden would help dislodge evidence allegedly blocked by the administration. McCarthy, who has done nothing to discourage Freedom Caucus vows to try to impeach the attorney general and some Cabinet secretaries, is fanning a narrative long favored by Trump and others on the right that the Bidens are crooks.

McCarthy has dangled the idea that House Republicans may vote this fall to expunge Trump's two House impeachments. He says he has made no promises. Similarly, he endorsed a Biden impeachment inquiry during a Fox News interview Sunday, heading into the final week before GOP lawmakers exit Washington until after Labor Day.  

While catering to his right flank, the Speaker hopes to leave matters vague enough to protect moderate Republicans, who grumble that a looming potential government shutdown after Sept. 30, coupled with talk of impeachment votes, would not be well received by voters in swing districts. Senate Republicans are similarly lukewarm about both possibilities.

The Hill: In a closed-door meeting Wednesday, McCarthy put no timeline on starting an impeachment probe and urged members not to overstate the evidence obtained so far. 

"This is not anything vulnerable Republicans want to talk about on the campaign trail. They want to focus on all of those issues that have [President] Biden's popularity so low and not be pulled into some Trump loyalty blood oath," Doug Heye, a national Republican strategist, told The Hill.

Rep. Ken Buck (R-Colo.), a Freedom Caucus member, accused McCarthy of "impeachment theater," asserting that he wants to distract from intra-party clashes over spending limits and the budget. 

"What he's doing is saying there's a shiny object over there and we're going to focus on that, we just need to get all these things done so we can focus on the shiny object," Buck told CNN on Wednesday. 

I don't think it's responsible for us to talk about impeachment. When you start raising the 'I' word,' it starts sending a message to the public, and it sets expectations," Buck added.

Hunter Biden, now a larger-than-life GOP political target ahead of the 2024 elections, found Wednesday that his scheduled plea deal is on hold on charges of two misdemeanor tax violations and a separate felony gun charge. 

Judge Maryellen Noreika delayed a decision on whether to accept a plea agreement between federal prosecutors and the president's son — demanding that the two sides make changes to clarify her role and insert language that limits the broad immunity from prosecution offered to Hunter Biden related to some business dealings. His lawyers estimated it would take about two weeks to work through (The New York Times and The Hill). 

Justice Department prosecutor Leo Wise told the court that there is an "ongoing investigation" involving Hunter Biden, suggesting it is related to past business dealings and possibly the Foreign Agent Registration Act. Asked for more information by Noreika, Wise said he was "not in a position where I can say" (Axios).

The White House did not comment (The Hill).

The Hill's Niall Stanage, The Memo: Hunter's headlines create political bind for Biden. 

NBC News: Trump legal teams prepare for possible grand jury vote today.
The Hill: Florida Republican Gov. Ron DeSantis said Wednesday that if he is elected, he might name Robert F. Kennedy Jr. to lead the Centers for Disease Control and Prevention or the Food and Drug Administration. Former Vice President Pence blasted DeSantis for favoring Kennedy, who he labeled a "pro-abortion Democrat." 
The Associated Press: Former Trump lawyer Rudy Giuliani conceded he publicly made false claims that Georgia election officials committed fraud tied to the 2020 election. He says he's protected by the First Amendment.
The Hill and The New York Times: Sen. Tim Scott (R-S.C.) as a presidential candidate has gained some traction.

Leading the Day

➤ CONGRESS

Senate Minority Leader Mitch McConnell (R-Ky.), 81, froze for 20 seconds in silence while speaking during a briefing for the news media in the Capitol on Wednesday and was escorted to his office by concerned colleagues, but returned later to resume taking questions. He said, "No, I'm fine," when asked by a reporter whether his episode was related to a concussion he suffered this spring, for which he was hospitalized and then treated in rehab. McConnell then answered a question at some length about Hunter Biden, The Hill's Alexander Bolton reported. 

The Hill's Al Weaver reports that one Republican senator who requested anonymity to discuss McConnell's health observed that the GOP leader has been more reticent at Republican lunch meetings. The lawmaker speculated that McConnell may be having troubling hearing the conversations at the lunch, just as he sometimes has trouble hearing reporters' questions at press conferences. A second Republican senator told The Hill that McConnell does not appear fully recovered from his springtime fall. 

"I love Mitch McConnell, he is one of the most strategic political thinkers that we have. I have such admiration and respect for him but I do fear that — you can call it low energy — he is not himself," the lawmaker said. 

On July 14, McConnell tripped and fell while disembarking from a plane at Reagan National Airport, according to two sources familiar with the incident. He was not seriously hurt and was seen later that day at the Capitol, where he interacted with at least one reporter (NBC News).

Meanwhile, House Republicans are showing small signs of progress as leaders try to wrangle the conference's various factions together to pass their first batch of federal funding bills this week, The Hill's Aris Folley and Mychael Schnell report. The House cleared a key procedural hurdle Wednesday by voting to begin debate on legislation to fund military construction, the Department of Veterans Affairs (VA) and related agencies for fiscal 2024 — but not without hours of drama as conservatives press for deeper spending cuts. However, as The Hill's Emily Brooks and Schnell write, plans to move an appropriations bill funding agriculture and the Food and Drug Administration to the House floor were brought to a halt amid internal GOP division over whether to further slash spending and a provision related to abortion. One House Republican told The Hill that they do not expect the bill to come to the floor at all this week as scheduled, punting its consideration until when the House returns in mid-September.

Politico: House GOP notches early win in bid to unite party on spending — but pitfalls remain. Conservatives say they're closing in on agreement to broader funding cuts. And other senior Republicans are getting more alienated as party leaders slash.

"We're not bringing the bill up. We're not gonna be here Friday to vote on the ag approps," the GOP lawmaker said.

Ostensibly focused on national security, three former defense officials on Wednesday delivered explosive testimony at a House hearing about unidentified anomalous phenomena (UAPs), warning of potential national risks. As The Hill's Ellen Mitchell reports, the witnesses before the House Oversight subcommittee — a former Navy pilot, a retired Navy commander and an ex-Air Force intelligence official — stressed that the government has been far too secretive in acknowledging such incidents, prompting calls from lawmakers for the intelligence community to be more forthcoming.

The hearing appeared to unite lawmakers in a push for answers after decades in which politicians were hesitant to discuss unidentified flying objects (UFOs) and other intrigues about possible extraterrestrial life lest they become a laughingstock. Members also worried the sightings could be tied to unfamiliar military technology owned by adversaries. 

"UAPs, whatever they be, may pose a serious threat to our military and our civilian aircraft, and that must be understood," said the subpanel's ranking member, Rep. Robert Garcia (D-Calif.). "We should encourage more reporting, not less on UAPs. The more we understand, the safer we will be."

Former intelligence official David Grusch, one of the witnesses at the hearing, made far-reaching claims about possible U.S. government cover-ups of contact with UFOs and nonhuman pilots, but he could not offer any hard evidence to substantiate his claims — largely due to his fears of prosecution for sharing classified data in a public setting, he told Congress. Grusch said that during his time as co-lead of the Pentagon's UAP task force, fellow intelligence officials leaked to him the existence of the secret program focused on retrieving — and attempting to reverse engineer — nonhuman craft. He was unable to provide details, and members complained that they had been denied access to a hearing room where they could hold a fully secure interview.

NBC News: Here are the five most memorable moments from Congress's UFO hearing.

A key congressional committee is set to vote this week on several bills that would develop a regulatory framework for cryptocurrencies, a milestone for Capitol Hill in its efforts to codify federal oversight for the digital asset industry. The crypto industry has been in the regulatory crosshairs since investors were burned last year by sudden collapses of Celsius Network, Voyager Digital, FTX and other companies (Reuters and Politico).

A Senate bill that takes aim at credit card "swipe fees" is unlikely to hitch a ride on the annual defense spending bill, writes The Hill's Taylor Giorno. There had been talk of tagging the swipe fee bill onto the must-pass legislation, but since the bill's sponsor, Sen. Dick Durbin (D-Ill.) announced Sunday he'd tested positive for COVID-19 for the third time this year and is absent from Washington, that's unlikely. The lobbying battle over swipe fees is heating up, with the bill's supporters saying they'll try to attach it to another must-pass bill and its critics blanketing TV, radio and digital platforms with ads warning the bill would cut funding for popular points programs. 

House Judiciary Committee Republicans appeared split in their appetite for impeaching Homeland Security Secretary Alejandro Mayorkas Wednesday, with many largely refraining from discussions of booting him from office, to the surprise of some Democrats on the panel. The hearing wasn't entirely free of fireworks. Rep. Jeff Van Drew (R-N.J.) repeated the once popular GOP refrain that he should resign or face removal, telling Mayorkas he'd reached the "inevitable conclusion" that the Homeland Security secretary should quit or "that leaves us with no other option. You should be impeached."

Democrats previewed an argument addressing GOP claims floated at different turns over Mayorkas's tenure, noting the drop in border crossings following the implementation of new Biden administration policies. But most of the GOP seemed to carefully skirt the "I" word, a factor one GOP aide privately told The Hill was because "I think everyone has moved onto bigger fish."

CNN: Judiciary panel grills Mayorkas over Biden's border policies.
The Hill: Rep. Matt Gaetz (R-Fla.) introduces legislation to end "unqualified" birthright citizenship.

➤ ECONOMY

The Federal Reserve raised its benchmark interest rate another quarter-point on Wednesday, reprising its emphasis on its inflation goal of 2 percent and the potential for more such action this year. The central bank will continue to use rates to try to cool the economy and bring down prices, believing that easing off too soon amid measurable progress on inflation would be a mistake. 

"We can afford to be a little patient, as well as resolute, as we let this unfold," Fed Chair Jerome Powell said. "We think we're going to need to hold, certainly, policy at restrictive levels for some time, and we'd be prepared to raise further if we think that's appropriate."

The latest rate hike, the 11th since March 2022, brings the federal funds rate to a range between 5.25 percent and 5.5 percent, a 22-year high.

Inflation has ebbed from a 40-year high hit last summer, with the consumer price index climbing 3 percent in June from a year earlier. That's well below the June 2022 peak of 9.1 percent. Fed officials, who insist they are data-dependent with their monetary moves, are scheduled to meet three more times this year, with the next meeting in September (The Wall Street Journal).

The Hill: Five takeaways as the Fed reignites its inflation fight.
The Hill: Powell: Housing market has "a ways to go" before prices cool.

Financial markets want to see an end to the rate hikes and want to imagine rate cuts next year. Consumers, who continue to spend despite their caution, suggest the Fed is going overboard amid soaring housing costs and mortgage rates, according to interviews with The Hill. "The Fed is trying whatever tools they have, but I don't know if it's necessary because inflation has slowed down," Jacob Abadi, a New Yorker who works as a buyer for a liquor store, said Tuesday. "With regard to the rates, it's just simply not affordable."

Bloomberg News: "They blinked": UPS call led to $30 billion Teamster contract win.
The Hill: Artificial intelligence could take more jobs from women than men in the next decade, technology experts predict.

In Focus / Sharp Takes

➤ INTERNATIONAL

For more than seven weeks, Ukrainian troops have fought along three main fronts across several hundred miles in the country's east and southeast, pressing along in their counteroffensive to find a weak spot in the heavily dug-in Russian defenses. American officials said Wednesday that Ukrainian officials told them their troops were now engaged in the main thrust of the assault, throwing more manpower and equipment at the westernmost of the three fronts, near Zaporizhzhia (The New York Times).

"The Russians are stretched," a Western official told the Times on Wednesday. "They are still experiencing problems with logistics, supply, personnel and weapons. They're feeling the pressure."

Meanwhile, a number of African leaders arrived in Russia on Wednesday for a summit with President Vladimir Putin as the Kremlin seeks more allies amid the fighting in Ukraine. Putin billed the two-day summit that opens in St. Petersburg today as a major event that would help bolster ties with the continent that is increasingly assertive on the global stage. The summit follows Moscow's withdrawal from a deal that allowed Black Sea grain exports that were vital to many African countries; the move drew strong condemnation around the world and raised new threats to global food security. In response, Russia doubled down by launching a barrage of missile attacks on Ukrainian ports and agriculture facilities (The Associated Press).

The European Union has agreed to ban exports of battlefield equipment and aviation parts to Belarus, expanding sanctions against the Russian ally for its involvement in Russia's war (The Guardian).

Forbes: Russia packed hundreds of vehicles into a Crimean repair depot. Ukraine just hit it with a cruise missile.
Reuters: Obscure traders ship half of Russia's oil exports to India, China after sanctions.

Mutinous soldiers have claimed to have overthrown Niger's democratically elected president. They announced on state television late Wednesday that they put an end to the government over the West African country's deteriorating security, suspending all institutions as the security forces were managing the situation. The announcement came a day after Niger's presidential guard surrounded the presidential palace and detained President Mohamed Bazoum. There was no immediate indication of whether the mutiny was supported by other parts of the military (The Associated Press and CNN).

Whereabouts still unknown, Bazoum took to social media today with a defiant vow to protect "hard-won" democratic gains. Foreign Minister Hassoumi Massoudou also issued a rallying cry on X, the platform formerly known as Twitter, for "all democrats and patriots" to make the coup fail (Reuters). Threats to Bazoum's leadership would undermine the West's efforts to stabilize Africa's Sahel region, which has been overrun with coups in recent years. Neighboring Mali and Burkina Faso have had four coups since 2020; both are being overrun by extremists linked to al-Qaida and the Islamic State. Secretary of State Antony Blinken visited Niger in March, seeking to strengthen ties with the country. The United States on Wednesday urged for Bazoum's release, while the EU, United Nations, France and others condemned the uprising. 

In Israel, the Supreme Court said Wednesday that it would hear petitions by the opposition in September to strike down the first part of the conservative government's controversial plan to weaken the country's judiciary, which passed Monday. Prime Minister Benjamin Netanyahu's coalition enacted the law in defiance of widespread protests and warnings from key allies such as the United States; it aims to curb the Supreme Court's practice of overruling some policies and appointments made by the national government on grounds they are "unreasonable." The case poses complicated questions for the court, which will now consider a law aimed at limiting its own authority (The New York Times).

NPR: Legal expert Hassan Jabareen discusses how Israel's judicial crisis may affect Palestinians.
WIRED: Israel's tech companies are fighting Netanyahu — or leaving the startup nation.
CNBC: Moody's sees "significant risk' besieging Israel's economy.

🛫 Travel: Next year, U.S. citizens visiting Europe for more than 90 days will need to apply online for a visa (good for up to three years) before entering 30 countries, according to a European Union announcement. Cost? Approximately $8. Who should apply? Check HERE. Would the U.S. implement its own visa charge and application process? Some travel experts think it's possible.

Opinion

When it comes to Big Tech, enough is enough, by Sens. Lindsey Graham (R-S.C.) and Elizabeth Warren (D-Mass.), guest essayists, The New York Times.
This GOP candidate and his ideas deserve to be taken seriously, by The Washington Post editorial board.
Will Alabama be allowed to defy the Supreme Court? by Dennis Aftergut, opinion contributor, The Hill.

Where and When

The House will convene at 10 a.m.

The Senate will meet at 10 a.m.

The president will receive the President's Daily Brief at 9 a.m. Biden will receive a briefing and discuss actions at 11:45 a.m. that respond to extreme U.S. heat conditions (The Associated Press). He will welcome Italian Prime Minister Giorgia Meloni for an Oval Office meeting at 3 p.m. Biden will address the Truman Civil Rights Symposium at the National Archives in Washington at 7:30 p.m. to speak about former President Truman's 1948 executive order banning segregation in the Armed Forces. Biden will return to the White House.

Vice President Harris is in Washington and has no public events.

Secretary of State Antony Blinken traveled from Tonga to Wellington, New Zealand, where he met Thursday morning with employees and families with U.S. Mission New Zealand, then participated in a Powhiri welcome ceremony. Blinken met with New Zealand Prime Minister Chris Hipkins and Foreign Minister Nanaia Mahuta. He and Mahuta will held a joint press conference. In the afternoon, the secretary attended the U.S. vs. Netherlands Women's World Cup match at the FIFA Women's World Cup. Blinken participated in a sports diplomacy event with the U.S. Soccer, Capital Football and WellingtonNZ.

Economic indicators: The Bureau of Economic Analysis will report at 8:30 a.m. on gross domestic product in the second quarter. The Labor Department at 8:30 a.m. will report on claims for unemployment insurance filed in the week ending July 22.

The White House daily press briefing is scheduled at 1:30 p.m.

Elsewhere

➤ HEALTH 

🦠 COVID-19 hospitalizations are rising in the U.S. to the highest level seen since December, according to the Centers for Disease Control and Prevention. Reminder: The coronavirus still makes humans sick.

After three years, we still don't know how the pandemic started, but here's detailed, science-based reporting about what's known (The New York Times Magazine). 

Meanwhile, doctors across the country who jeopardized patients' lives by pushing medical misinformation during the pandemic and its aftermath have faced few repercussions, according to a Washington Post analysis of disciplinary records from medical boards in all 50 states.

The Closer

Take Our Morning Report Quiz

And finally … 🛸 It's Thursday, which means it's time for this week's Morning Report Quiz! Inspired by the House hearing on unexplained aerial phenomena (UAP), we're eager for some smart guesses about possible life beyond Earth.

Be sure to email your responses to asimendinger@thehill.com and kkarisch@thehill.com — please add "Quiz" to your subject line. Winners who submit correct answers will enjoy some richly deserved newsletter fame on Friday.

In the 1950s, which government agency convened the Robertson panel, a secret group that for three days investigated UFO sightings?

CIA
FBI
State Department
House Intelligence Committee

Thousands of Americans have purchased insurance policies against alien abductions.

True

False

Which planet is most often mistaken for a UFO?

Mars
Saturn
Venus
Neptune

NASA's Voyager Golden Records, containing sounds of Earth for communication with extraterrestrials, contained 90-minutes of music. Which of these songs was included (hint: it was controversial)?