Morning Report — Congress inches closer to a funding deal

If Congress passes a sprawling budget deal to avert a government shutdown this week, it will most likely come right down to the wire.

Lawmakers will spend the day considering the first draft of the legislative text of the six-bill package, released in the early hours of the morning.

The full-year, $1.2 trillion funding deal for the fiscal year that ends in September includes funding for the departments of Homeland Security, Defense, State, Labor, Education and Health and Human Services. House lawmakers on both sides of the aisle want a vote by Friday to avoid a shutdown, but it’s still unclear how soon the Senate will act (CBS News).

Sen. Jon Tester (D-Mont.), a senior appropriator who is facing a competitive reelection bid this fall, told reporters he doesn’t think a short funding patch — or continuing resolution — would be needed over the weekend, but “it really does depend on the House.”

“We’re not really known for doing the right thing. But maybe this time we will,” Tester said, expressing optimism that the package will ultimately pass. “We’ve wasted enough taxpayer dollars with these [continuing resolutions].”

A major sticking point of the negotiations? Funding homeland security, which moved into the spotlight as lawmakers and President Biden debate provisions for addressing the situation at the U.S.-Mexico border.

Also not helping: The House’s 72-hour consideration rule for legislation. Speaker Mike Johnson (R-La.) said Wednesday that members are looking at ways to speed up consideration. With the initial bill text out this morning, the House is expected to attempt to pass the legislation under suspension of the rules, requiring the support of two-thirds of the chamber. And despite pushback from some House conservatives, Democrats are expected to join the bulk of House Republicans to get legislation to the Senate.

LAWMAKERS IN BOTH PARTIES began claiming wins before the bill was released, The Hill’s Aris Folley reports. Republicans hail funding cuts for foreign operations and diversity programs and Democrats favor investments in child care and domestic programs while fending off GOP-backed so-called poison pill riders.

Vox: How the threat of a government shutdown became normalized.

THE HOUSE REMAINS PARALYZED on the issue of supplemental Ukraine aid, so Senate Democrats are considering supporting assistance for Kyiv in the form of a loan, an idea first broached by Republicans. Some told The Hill’s Al Weaver and Mike Lillis the loan idea may be a viable compromise to benefit Ukraine. Sen. Lindsey Graham (R-S.C.) recently broached the concept with Ukrainian President Volodymyr Zelensky.

“I don’t know what kind of ransom the Republicans are going to demand, but I do understand the urgency of this moment,” said Sen. Elizabeth Warren (D-Mass.). “If there’s a way to structure money to Ukraine in a way that gets Republican votes, then I’d sure take a hard look at that.”

Notably not on board? Senate Minority Leader Mitch McConnell (R-Ky.), the upper chamber’s chief GOP proponent of Ukraine aid, who said “we don’t have time” to consider alternate approaches.

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TENSIONS ARE HEATING UP over congressional support for Israel in its war against Hamas. After Senate Majority Leader Chuck Schumer’s (D-N.Y.) impassioned floor speech last week criticizing Israeli Prime Minister Benjamin Netanyahu and his handling of the war — which has resulted in more than 31,000 deaths in Gaza and left vast swaths of the enclave on the verge of famine — Senate Republicans on Wednesday invited Netanyahu to speak at a closed-door lunch.

Schumer — the highest-ranking Jewish elected official in U.S. history — sent shock waves throughout Washington and Jerusalem last week when he denounced Netanyahu as having “lost his way,” claimed that “the Netanyahu coalition no longer fits the needs of Israel after Oct. 7,” and, subsequently, called for a new election in the country. The remarks prompted immediate criticism from Republicans in both chambers, write The Hill’s Mychael Schnell and Mike Lillis, but they were welcomed by some progressive lawmakers.

Netanyahu’s conversation with Senate Republicans focused in part on the widely expected Israeli invasion of Rafah, where more than 1 million Palestinians have sought shelter. The White House has cautioned Netanyahu against the invasion without a firm plan for protecting civilians; Secretary of State Antony Blinken will visit Israel on Friday to discuss the operation (Reuters).

House Republicans, meanwhile, are considering inviting Netanyahu, whose relationship with Biden is turning frosty, to address a joint session of Congress. It could shape up to be a repeat of 2015, when then-Speaker John Boehner (R-Ohio) invited the Israeli leader to address Congress, blindsiding former President Obama. Now, Democrats see the potential invitation as an attempt to politicize the U.S.’s changing relationship with Israel, slamming Republicans for trying to score a political win.

“It’s a shame that we would play politics with that relationship when the focus should be ending the war,” said Rep. Ro Khanna (D-Calif.).

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LEADING THE DAY

POLITICS 

Former President Trump is beta-testing whether to align himself with state bans on abortion after 15 weeks of pregnancy. His campaign has delayed settling on specifics as Republican-led states have enshrined abortion and reproductive health restrictions into law with patchwork approaches and considerable controversy. He’s also waited until he assembled the requisite number of delegates to become the nominee.

Last year, Trump said his party’s approach made it difficult to win elections, adding that “this issue cost us dearly in the midterms — and unnecessarily.”

Trump says he’s “pro-life” and insists he could “bring the country together” on the issue of abortion, a notable boast in the context of state legislative moves and recent polls showing majority disapproval of the Supreme Court’s 2022 decision to overturn Roe v. Wade.

In 28 states, access to abortion currently is limited depending on gestational age, with bans ranging from six weeks to more than 24 weeks. Abortion is almost completely banned with limited exceptions in another 14 states. Trump’s home state of Florida bars abortion after 15 weeks of pregnancy, but its law is being challenged.

Biden and Vice President Harris describe GOP state restrictions as “extreme” abridgements of fundamental rights and have called on Congress to back legislation that would establish federal statutory protections for abortion, an unlikely scenario. Democrats believe women in key battleground states, regardless of party or reproductive age, are weighing what state restrictions on reproductive health choices, including in vitro fertilization, may mean under a potential future Republican president, conservative Congress and among Supreme Court justices nominated by Trump.   

“The number of weeks now — people are agreeing on 15 — and I’m thinking in terms of that, and it’ll come out to something that’s very reasonable,” Trump said on a New York-based radio show Tuesday. “But people are really — even hard-liners are agreeing — seems to be 15 weeks. …But I’ll make that announcement at the appropriate time.”

The former president has suggested he would be open to exceptions in cases of rape, incest or when the life of the mother is endangered.

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WHERE AND WHEN

The House will meet at 10 a.m. House Appropriations subcommittees will hear from Office of Management and Budget Director Shalanda Young, Treasury Secretary Janet Yellen and Council of Economic Advisers Chair Jared Bernstein at 2:30 p.m. during questioning about the president’s budget request for fiscal 2025.

The Senate will convene at 10 a.m.

The president will depart Dallas, Texas, this morning for Houston, where he will headline a fundraiser in the area at 12:45 p.m. local time. Biden will return to the White House this evening. 

Vice President Harris has no public events. 

Secretary of State Antony Blinken is in Cairo to discuss the situation in Gaza. He will meet Egyptian President Abdel Fattah El-Sisi, followed by Foreign Minister Sameh Shoukry in the morning. The secretary will meet in the afternoon with Egyptian Director of General Intelligence Services Abbas Kamel, followed by representatives from Egypt, Jordan, Saudi Arabia, the United Arab Emirates and Qatar. Blinken will meet at 5 p.m. local time with the same group, plus Palestinian Authority representatives. He will attend an Iftar dinner in Cairo and hold a joint press availability with Shoukry at 8 p.m. local time.

Second gentleman Doug Emhoff flies to Colorado to appear in Denver’s Argo Park to speak at 3:45 p.m. MDT about rebuilding communities divided by developments decades ago. He’ll be accompanied by Tom Perez, White House intergovernmental affairs director and a Biden senior adviser. This evening in Denver, Emhoff will speak to Biden-Harris campaign donors at 7 p.m. MDT.

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ZOOM IN

ECONOMY

The Federal Reserve will keep interest rates high to weigh on growth and inflation this year, even as Chair Jerome Powell signaled Wednesday that rate cuts are likely in coming months — but not yet. Insisting that more data will be needed to establish that declining prices can be durable and reach a 2 percent target, Powell demurred when asked by reporters whether the central bank anticipates cuts in May or June.

The Fed’s benchmark rates will remain within a target range of 5.25 percent to 5.50 percent, a decision that had been anticipated by financial markets. The Fed’s statement maintained its earlier forecast for three rate cuts before the end of 2024, which pleased many investors.

MarketWatch: Dow, S&P 500, Nasdaq end Wednesday at all-time highs as policymakers maintain rate-cut forecast.

June could be a magic month after two years of higher rates and high prices. At the very least, some of the Fed’s expected rate cuts could come in the months approaching the November election.

“We’re looking for data that confirm the low readings that we had last year,” Powell said. “And give us a higher degree of confidence that what we saw was really inflation moving sustainably down to 2 percent.”

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TRUMP WORLD

Scott McAfee, the judge overseeing the Georgia election interference case, will allow Trump to appeal a ruling in which Fulton County District Attorney Fani Willis (D) continues prosecution of the former president and 18 defendants. McAfee on Wednesday granted a request by defense lawyers to ask the Georgia Court of Appeals to review the judge’s decision. It’s now up to the appeals court to decide whether the court will hear it.

In a ruling last week, the judge denied the defense’s request to disqualify Willis from the case or dismiss the indictment over her romantic relationship with special prosecutor Nathan Wade, provided he resign (The Washington Post).

New York Attorney General Letitia James (D) is pushing back on Trump’s “extraordinary” request for a stay of his $464 million civil fraud judgment, arguing the former president’s recent request was unreliable, procedurally improper and based on a flawed premise (ABC News).

NBC News: Trump has indefinitely delayed his Jan. 6 criminal trial. Hundreds of his supporters haven’t been so lucky.

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ELSEWHERE

INTERNATIONAL

Blinken met with President Abdel Fattah al-Sisi in Egypt today, continuing his sixth swing through the Middle East in pursuit of a temporary Gaza cease-fire that the United States is seeking via a newly disclosed United nations resolution. The U.S. has submitted a draft resolution to the U.N. Security Council calling for “an immediate cease-fire tied to the release of hostages” in Gaza, Blinken said on Wednesday in Saudi Arabia (The New York Times).

The United Nations human rights chief, Volker Türk, blamed Israel on Tuesday for what he said was the entirely preventable catastrophe of starvation and famine unfolding in Gaza. Türk said Israel’s restrictions on aid, together with its conduct in its campaign to destroy Hamas, including the displacement of people and the destruction of infrastructure, may amount to the use of starvation as a weapon of war, which is a war crime (Al Jazeera).

While Netanyahu has repeatedly spoken of the need to topple Hamas, he has done little to address the power vacuum the group’s defeat would leave in Gaza — especially after Israeli forces withdraw. While former Israeli security officials are split on how to address the situation, many agree that until the government has a detailed, workable plan for how Gaza will be governed and made secure, it will be impossible to chart a path toward a more stable future (The New York Times).

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THE CLOSER

Take Our Morning Report Quiz

And finally … 🌸 It’s Thursday, which means it’s time for this week’s Morning Report Quiz! With the change of seasons in mind, we’re eager for some smart guesses about springtime.

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

Washington, D.C., draws tourists and locals alike to the Tidal Basin each year for the peak bloom of which flower?

1. Magnolias
2. Cherry blossoms
3. Peonies
4. Tulips

This year, the first day of spring accelerated by 24 hours (according to the calendar). Why the early arrival?

1. Meteorologists predicted earlier temperature shifts
2. The changing of the seasons is calculated based on a lunar calendar
3. Rising pollen levels
4. It’s a leap year

During the vernal and autumnal equinoxes, how many hours of daylight do we get?

1. 10
2. 12
3. 8
4. 6

We shifted our clocks forward an hour this month for daylight saving time and lost some well-earned sleep. Why was the practice originally introduced?

1. As a measure to save on fuel costs during World War I
2. To standardize time zones
3. Clock manufacturers lobbied for biannual time changes so people would have their clocks inspected and repaired
4. Physicians emphasized the benefit of sunlight for health

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