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CQ ON DEFENSE – MORNING NEWS
Feb. 15, 2023 – 6:00 a.m.
Questions remain over downed 'unidentified aerial phenomena'
By Caroline Coudriet, CQ
Good morning, and welcome to CQ Defense. It's Wednesday, Feb. 15.
TOPLINES
1. Details emerge: The Biden administration is still piecing together the origins of three mysterious flying objects that were shot down by fighter jets over U.S. and Canadian airspace in recent days.
2. Flying objects: A key House lawmaker who has long pushed for increased focus on 'unmanned aerial phenomena' wants the Pentagon to be more transparent about the objects it is shooting down.
3. Spring has sprung: The Pentagon and its partners are working to lay the groundwork in support of Ukraine’s potential spring offensive campaign against Russian military targets.
4. Hold on: Some of the remaining seven civilian Defense Department nominees, renominated after their nominations lapsed at the end of the last Congress, could again face a difficult path to confirmation this year.
FULL BRIEFING
1. Information trickles out about downing of flying objects
The Biden administration is still piecing together the origins of three mysterious flying objects that were shot down by fighter jets over U.S. and Canadian airspace in recent days, the latest in a saga that began with the downing of a high-altitude Chinese spy balloon that had traversed the U.S. earlier this month.
Information about the three objects, which unlike the Chinese spy craft have not been identified as "balloons," has slowly trickled out from the administration and lawmakers.
“They’re not from outer space,” North Carolina Republican Sen. Thom Tillis, who served on the Armed Services Committee during the previous Congress, told reporters Tuesday after emerging from an all-senators classified briefing. “We didn’t kill E.T.,” quipped Lindsey Graham, R-S.C., another former member of the Armed Services panel who now serves as the top Republican on the Judiciary Committee.
No debris from the objects has been retrieved yet, according to National Security Council spokesman John Kirby, who said the remote locations of the debris fields and “tough” weather conditions have hampered recovery efforts.
The first of the three was shot down near Deadhorse, Alaska, on Friday; the second, over the Canadian Yukon on Saturday. The final object was destroyed over Lake Huron on Sunday.
Idaho Republican Sen. Jim Risch, the ranking member of the Foreign Relations Committee, told reporters that all three objects were “small, smaller than a car,” and that one of the objects was carrying “a payload.”
But Kirby said the administration has not seen any indication that the objects were part of China’s spy balloon program, or that they were involved in external intelligence collections efforts. A possible explanation, he said, is the objects are benign, and tied to research or commercial entities.
2. Lawmaker presses for more transparency on UAPs
A key House lawmaker who has long pushed for increased focus on 'unmanned aerial phenomena' wants the Pentagon to be more transparent about the flying objects shot down in recent days.
In a Feb. 13 letter to Defense Secretary Lloyd J. Austin III obtained by CQ Roll Call, Arizona Rep. Ruben Gallego — the top Democrat on the House Armed Services subcommittee that oversees intelligence and special operations — indicated his “grave concern” with the objects, demanding a classified briefing on the matter.
“I am deeply concerned by continued incidents of high-altitude objects violating United States airspace,” he wrote. “It is imperative that we give this issue the time and attention it deserves.”
Little is known about the three objects, which were shot down above Alaska, Canada and Lake Huron over the weekend. But the high-profile missile strikes by fighter jets bring to the fore a once-stigmatized issue that lawmakers in recent years have sought to address. Senators received a briefing on them Tuesday.
In 2021, Gallego and other lawmakers included an amendment in the fiscal 2022 national defense authorization law (PL 117-81) establishing the permanent All-domain Anomaly Resolution Office to respond to UAP reports, replacing the Unidentified Aerial Phenomena Task Force. The amendment also required the Defense Department to provide unclassified annual reports to Congress on UAPs.
According to the most recent report, released last month, the office has received 247 new UAP reports since March 2021, bringing the total number of UAP reports to 510.
3. Defense Department prepares to back Ukraine's spring offensive
With the one-year anniversary of the war in Ukraine looming, the Pentagon and its partners are working to lay the groundwork in support of the country’s potential spring offensive campaign against Russian military targets, the U.S. Defense secretary said Tuesday.
Secretary Lloyd J. Austin III touted the aid the U.S. and other countries within the so-called Ukraine Defense Contact Group have funneled to Ukraine to help the nation seize what officials expect will be a forthcoming “window of opportunity” in the conflict.
“What Ukraine wants to do at the first possible moment is to establish or create momentum and establish conditions on the battlefield that continue to be in its favor,” he said. “We expect to see them conduct an offensive sometime in the spring and, because of that, all of the partners in the Ukraine Defense Contact Group have been working hard to ensure that they have the armored capability, the fires, the sustainment to be able to be effective in creating the effects on the battlefield that they want to create.”
Since Russia’s invasion last February, the U.S. has committed more than $29.3 billion in security assistance to Ukraine, according to DOD’s tally, including the latest package announced earlier this month.
Joint Chiefs of Staff chairman Army Gen. Mark Milley pledged that partners will continue giving Ukraine “the equipment and capabilities it needs to defend itself,” as he derided Russia’s “very costly war of attrition.”
He also declared Russia “will not outlast the Ukrainian people, nor the group of allies and partners that met today” in Brussels for the Ukraine Defense Contact Group and NATO Defense Ministerial meetings.
"In short, Russia has lost; it lost strategically, operationally and tactically, and they are paying an enormous price on the battlefield," Milley said.
Meanwhile, Austin said the U.S. is working to train Ukrainian soldiers how to operate on the battlefield to reduce the amount of ammunition the country is using. NATO Secretary General Jens Stoltenberg raised the issue on Monday, noting that Ukraine is going through munitions at a rate "many times higher" than the U.S. and European partners have been able to produce them thus far.
"As they place more emphasis on maneuver and shaping the battlefield with fires and then maneuvering, there’s a good chance that they’ll require less artillery munitions, but that’s left to be seen,” Austin said of Ukrainian troops. “We’re going to do everything we can to make sure they have what they need to be successful.”
4. The threat of holds still lingers for DOD nominees
Some of the remaining seven pending civilian Defense Department nominees, renominated after their nominations lapsed at the end of the last Congress, could again face a difficult path to confirmation this year.
At least two of the nominees, who would assume high-ranking positions within the Pentagon if confirmed, are at risk of being held up, Alaska Republican Sen. Dan Sullivan said Tuesday.
Sullivan, who last summer announced he intended to hold three nominees in response to the Biden administration's decision to stall a mining project in Alaska, said he was assessing whether to continue the holds for the same reason.
"I'm meeting with two them in the next week, so we'll figure out where I go from there," Sullivan said.
Sullivan called for a roll call vote when the Senate Armed Services Committee last week favorably reported the nominations of Dr. Radha I. Plumb to be deputy undersecretary of Defense for acquisition and sustainment and Dr. Laura Taylor-Kale to be assistant secretary of Defense for industrial base policy.
Sullivan did not specify whether Plumb and Taylor-Kale are the nominees with whom he is planning to meet, however.
The act of a roll call vote, Sullivan said, was his way of signaling that he is still concerned about the stalling of the mining project, which he says would supply the U.S. with critical minerals and is a national security issue.
And for the rest of the nominees, other sticking points could also emerge.
According to reports from Defense News last month, Sen. Michael Bennet, D-Colo., is the latest lawmaker to threaten holding the remaining nominees over Defense Secretary Lloyd J. Austin III's refusal to meet with him about the Trump administration’s decision to move U.S. Space Command from its current location in Colorado Springs to Huntsville, Ala.
Given Democrats' new 51-49 majority in the Senate, any such holds could be overcome with sheer numbers. But the holds would eat away at valuable floor time, forcing multiple procedural votes and gumming up the works.
CQ NEWS – CQ MORNING BRIEFING
Feb. 15, 2023 – 5:30 a.m.
Today: No aliens, but House demands briefing on UFOs
By Megan Mineiro, CQ
Good morning. Lawmakers could pose questions related to recent unidentified (but apparently terrestrial) flying objects at two hearings today. Democrats are teed up to run for Feinstein's seat. And the search begins for a new architect of the Capitol. Here’s your CQ Morning Briefing for Wednesday, Feb. 15.
Toplines
- Sky-high concerns. House lawmakers are demanding a classified briefing on the recent downing of "unidentified aerial phenomena."
- Golden State seat. Feinstein won't seek reelection, and House Democrats are already off to the races to win her seat in 2024.
- Job opening. The search for a new architect of the Capitol begins but could take a year or more.
- On the radar. The fight over health care and services for transgender individuals could be a potent campaign issue for conservatives in 2024.
Schedules
White House: Biden delivers remarks in Maryland on the economy and reducing the deficit.
House: Not in session.
Senate: Convenes at 10 a.m., with an 11:30 a.m. confirmation vote on the nomination of Adrienne C. Nelson to be a U.S. district judge, as well as a cloture vote on the nomination of Ana C. Reyes to be a U.S. district judge. A cloture vote is expected at 1:50 p.m. on the nomination of Daniel J. Calabretta to be a U.S. district judge.
These would be followed at 4:30 p.m. by confirmation votes on Reyes and Calabretta, as well as a cloture vote on the nomination of Lester Martinez-Lopez to be an assistant secretary of Defense.
Committees: Senate Foreign Relations holds a hearing on countering illicit fentanyl trafficking (10:30 a.m., 419 Dirksen).
Senate Finance hears from Daniel I. Werfel, the president's pick to be the Internal Revenue Service commissioner (10:30 a.m., 215 Dirksen).
Full Briefing
1. House members demand classified briefing on UAPs
Lawmakers continue to press the Biden administration for more information on the flying objects shot down in recent days.
Arizona Rep. Ruben Gallego — the top Democrat on the House Armed Services subcommittee that oversees intelligence and special operations — expressed his “grave concern” with the objects, demanding a classified briefing on the matter, in a Monday letter to Defense Secretary Lloyd J. Austin III obtained by CQ Roll Call.
Gallego has long pushed for increased focus on unmanned aerial phenomena. Caroline Coudriet has more details.
A group of House Homeland Security Republicans also penned top officials Tuesday demanding a classified briefing on the downed high-altitude Chinese spy balloon.
"Given the pertinent homeland equities involved in the Chinese surveillance balloon incident, it is unacceptable that we learned about these incidents through news reports," House Homeland Security Chairman Mark E. Green, R-Tenn., wrote in a letter, co-signed by five other committee Republicans, to Air Force Gen. Glen VanHerck — commander of U.S. Northern Command and the North American Aerospace Defense Command, or NORAD — and Homeland Security Secretary Alejandro Mayorkas.
“They’re not from outer space,” North Carolina Republican Sen. Thom Tillis told reporters Tuesday after senators were briefed on three more objects shot down in recent days, over Alaska, Canada and Lake Huron. And quipped Lindsey Graham, R-S.C.: “We didn’t kill E.T.”
The objects were flying at altitudes that could have posed a threat to commercial aircraft, according to administration officials.
That could prompt questions Wednesday when acting FAA administrator Billy Nolen testifies to Senate Commerce, Science and Transportation. Nolen is appearing to take questions on recent failures by the agency's Notice to Air Missions system, which sends pilots flying in the U.S. real-time updates about safety concerns on their routes (10 a.m., 253 Russell).
"FAA’s systems must be safe, secure, and globally competitive. I also expect Acting Administrator Nolen to address incursions in our airspace and preventing recent ‘close calls’ and other safety incidents," Chair Maria Cantwell, D-Wash., said in a statement Tuesday evening.
The unidentified objects also could come up when Senate Armed Services on Wednesday hears from witnesses, including an expert on China, on global security challenges and strategy.
2. House Democrats in the race for Feinstein's seat
Democratic Sen. Dianne Feinstein, whose extraordinary career in California politics spans more than 50 years, announced Tuesday that she won’t seek reelection in 2024.
The news, while not surprising, could prompt more Democrats to jump in the race to fill her seat.
There already two Democratic House members are running for Feinstein’s seat: Katie Porter and Adam B. Schiff.
Porter and Schiff didn’t wait for Feinstein to disclose her plans before they announced. Both have already kicked off their Senate campaigns, and a third Democrat — Rep. Barbara Lee — is expected to join the race any day.
Former House Speaker Nancy Pelosi, D-Calif., said she would back Schiff — but only if Feinstein didn’t run.
In recent months, whispers in both California and Washington about Feinstein’s mental acuity have grown louder. But Feinstein’s office has pushed back, saying she continues to fulfill the responsibilities of the job.
Feinstein, 89, said Tuesday she had plenty of work still to do in the Senate. Her term expires in January 2025. Daniela Altimari and Niels Lesniewski have more details on her decades in Congress.
3. Search for new architect of the Capitol could take awhile
Senate Rules and Administration Chairwoman Amy Klobuchar said the search for a new architect of the Capitol will start “immediately,” while urging patience, as the process to find a replacement can take a year or more.
The Minnesota Democrat will be part of a congressional panel tasked with making recommendations to the president to fill the now-vacant position after the White House on Monday removed J. Brett Blanton from the role.
“It’s going to take a while,” Klobuchar said Tuesday. “We have an acting AOC with a lot of experience. But it has to be a priority.” Chief Engineer Chere Rexroat is filling that interim role.
The White House confirmed Blanton’s removal Monday, days after he appeared before the House Administration Committee and skirted questions about abuses of his office alleged in an internal watchdog report released in October.
Blanton’s removal was cheered by lawmakers from both parties and watchdogs alike. But it leaves a void at the little-known, but crucial, agency tasked with overseeing the maintenance, operation, development and preservation of the Capitol complex.
On the radar: GOP eyes trans care as 2024 campaign issue
Republicans hoping to elevate conservative messaging about health care and services for transgender individuals have followed the same playbook that they used to advance anti-abortion legislation: starting in the states, focusing initially on minors.
But now, that fight is blooming into one that conservatives see as a potent campaign issue in 2024.
In early February, former President Donald Trump, who is running for president again in 2024, identified actions he would take to restrict gender-affirming care if elected. Speaker Kevin McCarthy, R-Calif., hosted a Feb. 1 event condemning transgender girls participating in youth sports. And on Feb. 9, Sen. Josh Hawley, R-Mo., launched an investigation of the Washington University Transgender Center at St. Louis Children’s Hospital.
CQ NEWS
Feb. 15, 2023 – 5:30 a.m.
Newcomer's placement on Pentagon spending panel attracts notice
By Aidan Quigley, CQ
Rep. Mike Garcia's rapid ascent to a seat on the House Defense Appropriations Subcommittee — among the most sought-after assignments on Capitol Hill — is turning heads in Washington.
A former Navy pilot and Raytheon Technologies Corp. executive, Garcia, R-Calif., came to Congress after winning a special election in spring 2020 to replace former Rep. Katie Hill, D-Calif., who resigned the previous November, winning then-President Donald Trump's endorsement along the way.
Garcia went on to win a very tight general election in November 2020, by just 333 votes; House GOP leaders promptly named him to the Appropriations panel for the 117th Congress. He widened his victory margin last November in a redrawn district. But as one of just 18 House Republicans whose constituents backed President Joe Biden over Trump in 2020, he's still a top Democratic target.
Garcia is vowing to use his role to reform the Pentagon’s procurement process to make the U.S. more nimble and able to counter China’s growing capabilities.
“We need to be willing to say ... this contract is good enough to award, it’s OK if [defense contractors] make a little more money or if there’s a little more risk, we’re trading that for speed right now,” he said. “We have to go fast and allow the development programs to move forward.”
The defense panel, which controls roughly half of annual discretionary spending — currently running at almost $1.7 trillion — is considered by many to be the holy grail of Appropriations subcommittee assignments.
Appropriations Chairwoman Kay Granger, R-Texas, selected Garcia for the panel over several members with longer tenures on the committee. She cited Garcia’s professional experience and his district in announcing his assignment.
“Congressman Garcia’s experience as a veteran and a former executive in the defense industry makes him a perfect fit to serve on the Subcommittee on Defense,” Granger said in a press release.
Garcia, 46, also serves on the Intelligence Committee, establishing himself as a rising star among Republicans in the national security space.
He was also in the spotlight last month as one of those who gave a nominating speech for fellow California Republican Kevin McCarthy's speaker bid.
Fighter pilot, to Raytheon, to Congress
After graduating from the Naval Academy, Garcia became an F/A-18 Super Hornet pilot during the Iraq War. He flew over 30 combat missions during that stint, and said this experience gave him a good sense of military technology, the country’s strategic and tactical gaps, and the stresses of combat on both personnel and equipment.
However, Garcia said his experience as a Raytheon executive really makes him stand out in a Congress with many veterans, including many with combat experience. At Raytheon, Garcia rose from middle management to program manager for the F-15EX, the next-generation fighter jet that the company is outfitting with radar systems.
During his time at Raytheon, Garcia said he saw “the challenges that the Pentagon presents, that the buyer presents, and really got a good understanding of where all the choke points are, where all the barriers to going faster lie, where all the inefficiencies lie, and where the entire complex sort of fails in many cases.”
Defense Subcommittee Chairman Ken Calvert, R-Calif., said Garcia’s experience in the Navy and at Raytheon prepares him well for the subcommittee. California’s role in the defense industry also makes Garcia a good fit, Calvert said.
“He was in industry at Raytheon, he understands the procurement side, which is extremely important,” Calvert said. “That’s one of the things we need to fix, because the procurement system is broken.”
Appropriations goals
Garcia agrees with Calvert’s assessment that the Pentagon’s procurement process needs work. He said the Pentagon blames contractors for delayed and over-budget procurement programs, while the contractors blame the Pentagon. Both blame Congress, he said.
The Pentagon needs to move faster to award contracts once they have the authorization and funding, not change requirements in the middle of competitions and award more sole-source awards for smaller programs, Garcia said.
The Defense Department is not keeping pace with China, Garcia said, and that needs to change.
“The Pentagon needs to trade some of these efficiencies and cost savings efforts for speed right now,” he said. “We, as Congress, need to be OK with that. We need to give them the tools to contract in a certain way and move quicker.”
Garcia said Congress and the Pentagon can’t always default to blaming contractors when programs are behind schedule and over budget.
“Trust me, as a former contractor, I’m not trying to protect those guys,” he said. “There are a lot of areas they can do better, but they do invest in these programs, and they don’t recognize the highest profit margins.”
Garcia received $104,911 from defense contractors in his last campaign, placing him 33rd among House members, according to OpenSecrets.org, which tracks donations by industry.
Top Garcia donors in the 2022 cycle include his former employer Raytheon; Northrop Grumman Corp., which is building the B-21 Raider stealth bomber at its Palmdale facility in his district; and AeroVironment Inc., which makes the Switchblade drones that the Ukrainian military has used in its fight against Russian armed forces. AeroVironment is based in Simi Valley, which used to be in Garcia's district and is now just over the border.
Additionally, Lockheed Martin Corp. has an aircraft manufacturing facility in Palmdale; the work performed there is classified, according to local reports.
Military pay raise
Garcia has pushed to raise pay for junior enlisted military members, and argued for an amendment to previous appropriations bills to ensure no service member makes less than $32,000. He said he will continue that push this Congress.
Calvert said Garcia has been a leader on improving pay for soldiers during his time in Congress.
“We need to give these young men and women additional compensation,” Calvert said. "Right now, an E1" — a reference to the lowest military pay grade — "starts at $11 an hour, and that’s just not right. We’ve got to fix that system, so we’re going to work on it.”
McCarthy's promise to write the fiscal year 2024 appropriations bills at the fiscal 2022 topline has led to concerns from some about potential cuts to the defense budget. Granger and other senior appropriators have come out against defense cuts.
Garcia, however, was less quick to defend the $858 billion level of defense and security-related spending in the fiscal 2023 omnibus (PL 117-328). He said he believes there is some fat in the budget, including climate programs and social justice training efforts, along with room to identify additional efficiencies.
“Whatever that number is, if it’s $800 billion, it can actually behave like $900 billion,” he said. “$850 billion is a record-high number, so it’s not an anemic appropriations number; neither is $775 billion. These are still very large quantities we are talking about.”
Selection process
It’s not typical for a member in just their second term to earn a slot on the Defense subcommittee, Michael Higdon, a former top staffer to former Appropriations Chairman Harold Rogers, R-Ky., said.
While the committee looks at seniority, it also weighs capacity, district makeup, professional background and leadership potential, he said.
“The committee is always thinking about strengthening the bench,” said Higdon, now a lobbyist. “As it is, the future of the [Defense Department] is about wisely investing in and procuring rapidly developing technology to keep up with the fight, and Mike Garcia intimately understands this space.”
In the last Congress, the Republicans’ Defense Subcommittee lineup consisted of seven senior appropriators who were ranking members on other subcommittees.
Moving into the majority, Republicans added slots, with Garcia and Reps. David Joyce, R-Ohio, and Chris Stewart, R-Utah, joining the subcommittee. Joyce is also a senior appropriator who is the ranking member of the Homeland Security subcommittee, and Stewart has been on the Appropriations Committee since late 2013.
Garcia said he's encouraged that Republicans do not base subcommittee assignments off of seniority, like the Navy did.
“Time and rank is one thing, but aligning the skill sets and experience, and expertise to that subcommittee is just as important,” he said. “So I really appreciate Kay Granger, Ken Calvert, Kevin McCarthy recognize, hey, we have a member with a very niche expertise, and it happens to align to [the Defense subcommittee] perfectly.”
Rep. Steve Womack, R-Ark., who also sits on the Defense subcommittee, has worked with Garcia on appropriations matters in the past and said Garcia is “a quality guy, a quality member, who brings a lot to the table.”
Womack himself joined the Defense panel during his second term on Capitol Hill.
“The Defense subcommittee does find people, who are highly qualified, early on,” Womack said.
CQ BUDGET TRACKER – DAILY BRIEFING
Wednesday, February 15, 2023 – 7:00 a.m.
Tax Treaty Snagged
By David Lerman, Editor
TOPLINES
1. Tax treaty snagged: Concerns about double taxation are bogging down a U.S.-Chile tax treaty.
2. Newcomer's plum position: A California Republican in a swing House district won a prized Appropriations subcommittee slot.
3. Feinstein's swan song: A longtime Senate appropriator announced she won't be seeking reelection next year.
4. Greenhouse gas reduction money: The EPA announced guidelines for $27 billion in new grant funding.
FULL BRIEFING
1. Tax treaty snagged
The Senate is looking to ratify a new tax treaty for the first time in years, but some businesses' concern about tightening language meant to prevent their earnings from being double taxed is creating a wrinkle in an otherwise widely backed effort.
Companies that take issue with the language being added to the tax treaty with Chile are hoping for tweaks or, at minimum, to have a broader dialogue with the Treasury Department about what they'll negotiate in future treaties, according to three sources with knowledge of U.S. companies’ viewpoint. Senate Finance Republicans are sympathetic to the concerns.
The issue is arising now because the Chile tax treaty is the first new agreement near ratification since Republicans’ 2017 tax law (PL 115-97) overhauled the tax code for U.S. companies’ foreign earnings. And steep corporate tax increases are taking effect in that country soon that could hit U.S. companies doing business there harder without ratification.
The version of the treaty approved by the Senate Foreign Relations Committee last year already included a statement adjusting for changes to U.S. law, which some supporters say is fine as is and similar to the approach taken with many other countries before the 2017 law change. Senate Majority Leader Charles E. Schumer, D-N.Y., recently signaled he’s ready to bring it to the floor, and the Treasury Department is calling for senators to wrap up ratification after a decadelong wait.
The Chile tax treaty — like dozens of others the U.S. has in place — aims to set terms for taxing businesses and individuals across borders. For companies, it's critical to securing certainty and lower taxes on income earned in Chile.
Its broad impact on businesses is clear in the range of companies weighing in on the treaty, according to lobbying records, which include the country's largest retailer, miners, manufacturers, life insurers and major fast-food chains.
2. Newcomer's plum position
Rep. Mike Garcia's rapid ascent to a seat on the House Defense Appropriations Subcommittee— among the most sought-after assignments on Capitol Hill — is turning heads in Washington.
A former Navy pilot and Raytheon Technologies Corp. executive, the California Republican came to Congress after winning a special election in spring 2020 to replace former Democratic Rep. Katie Hill, who resigned the previous November, winning then-President Donald Trump's endorsement along the way.
Garcia went on to win a very tight general election in November 2020, by just 333 votes; House GOP leaders promptly named him to the Appropriations panel for the 117th Congress. He widened his victory margin last November in a redrawn district. But as one of just 18 House Republicans whose constituents backed President Joe Biden over Trump in 2020, he's still a top Democratic target.
Garcia is vowing to use his role to reform the Pentagon’s procurement process to make the U.S. more nimble and able to counter China’s growing capabilities.
“We need to be willing to say ... this contract is good enough to award, it’s OK if [defense contractors] make a little more money or if there’s a little more risk, we’re trading that for speed right now,” he said. “We have to go fast and allow the development programs to move forward.”
The defense panel, which controls roughly half of annual discretionary spending — currently running at almost $1.7 trillion — is considered by many to be the holy grail of Appropriations subcommittee assignments.
Appropriations Chairwoman Kay Granger, R-Texas, selected Garcia for the panel over several members with longer tenures on the committee. She cited Garcia’s professional experience and his district in announcing his assignment.
3. Feinstein's swan song
California Sen. Dianne Feinstein, a 30-year member of the Senate Appropriations Committee, announced Tuesday that she won't seek reelection next year.
“I am announcing today I will not run for reelection in 2024 but intend to accomplish as much for California as I can through the end of next year when my term ends,” the Democrat said in a statement.
The news wasn’t surprising: Feinstein, who at 89 is the oldest member of the Senate, raised just $559 in the final quarter of 2022 and had $9,969 in her campaign account on Dec. 31.
Two Democratic House members are already running for Feinstein’s seat and another is expected to enter the race. Some of Feinstein’s Senate colleagues have raised concerns about a cognitive decline, while other Democrats say her moderate brand of politics is out of step with today’s Democratic Party.
In the statement announcing her decision, Feinstein said she had plenty of work still to do in the Senate. Her term expires in January 2025. “And I will use my seniority on the Appropriations Committee to ensure California gets its fair share of funding," she said.
Feinstein currently serves as chair of the Energy-Water Appropriations Subcommittee, which has jurisdiction over funding for the Energy Department, the Army Corps of Engineers and the Bureau of Reclamation.
4. Greenhouse gas reduction money
The EPA on Tuesday announced parameters for how it will distribute $27 billion in public funds intended to raise private capital for projects that reduce greenhouse gas emissions.
The Greenhouse Gas Reduction Fund was created by last year’s climate, tax and health care law (PL 117-169) and is modeled on state and local "green" banks that have financed community projects that may otherwise not have received funding from traditional sources.
“Many of these communities have not seen the infusion of private capital to help them realize opportunities, whether it be energy efficiency or rooftop solar or any other clean technologies,” EPA Administrator Michael S. Regan said on a call with reporters.
The agency said it will hold two grant competitions this year, with the release of notices of funding opportunities expected early this summer.
Republicans have criticized this provision of the law and questioned whether these projects should receive federal assistance. During a debate on the law last August, Senate Energy and Natural Resources ranking member John Barrasso, R-Wyo., cited the example of Solyndra, a solar company that defaulted on a $535 million Energy Department loan under the Obama administration.
BUDGET BRIEFS
Biden on offense: President Joe Biden plans to attack Republicans Wednesday for policies the administration says would balloon federal deficits, a White House official said. In a speech to the International Brotherhood of Electrical Workers in Lanham, Md., Biden will argue that GOP proposals would increase the debt by more than $3 trillion, according to a White House fact sheet. Most of that increase, about $2.7 trillion, would come from extending tax cuts that are set to expire under a 2017 GOP tax code overhaul (PL 115-97).
Inflation easing: Consumer prices rose at an annual rate of 6.4 percent in January, down from 6.5 percent in December, the Bureau of Labor Statistics reported. Core inflation, stripping out food and energy, was 5.6 percent, a decline from 5.7 percent. The new figures were higher than forecasts indicated. The BLS also showed a steep 0.5 percent increase in month-over-month prices — up from a revised 0.1 percent in December — while core inflation remained at 0.4 percent for the second month in a row.
Economic team reshuffled: President Joe Biden announced a reshuffling of his economic team Tuesday, naming Federal Reserve Vice Chair Lael Brainard to become director of his National Economic Council, succeeding Brian Deese. Jared Bernstein, a longtime Biden economic aide, will become the new chair of the Council of Economic Advisors, succeeding Cecilia Rouse. Senate Banking Chairman Sherrod Brown, D-Ohio, praised the appointments, saying Brainard and Bernstein "built their careers by putting workers and communities at the center of our economy." But House Financial Services Chairman Patrick T. McHenry, R-N.C., said Brainard would push to "expand executive regulatory authority and control," while Bernstein's "progressive economic policies will continue to harm families struggling under Biden-induced inflation and accompanying increasing interest rates."
Build the wall: A group of Republicans, led by North Carolina Sen. Ted Budd and Indiana Rep. Jim Banks, introduced a bill that would require construction of a wall along the southern U.S. border with Mexico to resume. The measure would unlock more than $2.1 billion in unspent funding and ensure previously appropriated funds for the wall do not expire, among other provisions.
Scott's new entitlements bill: Sen. Rick Scott, R-Fla., unveiled text of a bill he announced last week that would require a two-thirds vote in the Senate for any legislation that would cut Social Security or Medicare benefits or use Medicare savings to offset unrelated legislation. The measure would also rescind IRS enforcement and operations support funding Democrats enacted in their climate, tax and health law (PL 117-169) and transfer the money to two Social Security trust funds.
Taxing stock buybacks: A group of Senate Democrats is backing up Biden’s State of the Union proposal to raise a new tax on companies’ stock buybacks from 1 percent to 4 percent. Senate Banking Chairman Sherrod Brown of Ohio and Finance Chair Ron Wyden of Oregon led introduction of the bill to dial up the tax, which was part of Democrats’ August budget package (PL 117-169). Their measure would also block new stock issued as pay for top executives from offsetting the tax on buybacks.
Clean energy tax guidance: The Treasury Department, Energy Department and IRS rolled out new guidance for clean energy tax credits under Democrats’ August budget package (PL 117-169). One notice applies to an expanded tax credit for energy projects, which will begin accepting applications May 31 for $4 billion in projects, including $1.6 billion reserved for communities with shuttered coal mines or coal-fired power plants. The other lays out programs for 2023 under a bonus incentive for solar and wind projects in low-income communities.
Restricting tax audits: Senate Finance Committee Republicans led by ranking member Michael D. Crapo of Idaho introduced a bill to bar any of the nearly $80 billion in funds for the IRS under Democrats’ August budget package (PL 117-169) from being used to audit taxpayers with income below $400,000.
Tax on Big Oil: Sen. Sheldon Whitehouse, D-R.I., and Rep. Ro Khanna, D-Calif., reintroduced their bill to tax big oil companies on their excess profits. The measure, retroactive to 2022, would impose a quarterly per-barrel tax on companies that produce or import at least 300,000 barrels of oil per day. The revenue from the tax, equal to half the price differential between current oil prices and the pre-pandemic average, would be returned to consumers via income-based quarterly rebates.
Energy prices probe: House Energy and Commerce Committee Democrats sent letters to five electric and gas utility associations asking for information about how they’re managing rising prices. The letters include several questions seeking information about use of the Low-Income Home Energy Assistance Program, for which Democrats increased funding in the fiscal 2023 omnibus spending law (PL 117-328), to determine whether any program improvements are needed.
Casey's recovery: Sen. Bob Casey, D-Pa., a member of the Finance Committee, underwent successful surgery for prostate cancer Tuesday, spokesperson Mairead Lynn said in a statement. "His doctor reports that, as expected, the procedure went well and he confirmed that the Senator should not require further treatment," Lynn said. "Senator Casey and his family appreciate the well-wishes and extraordinary support from every corner of the Commonwealth, and he looks forward to getting back to a normal schedule after a period of rest and recovery.”
BUDGET BULLETIN
Wednesday, Feb. 15:
- Congressional Budget Office release of 10-year budget and economic outlook, and debt limit report, 2 p.m., cbo.gov.
- Senate Democratic leaders hold news conference on impact of House GOP pledge to cut spending, 2:30 p.m., Senate TV gallery.
- Senate Budget Committee hearing on climate change economic risks and budget impact, 10 a.m., 106 Dirksen.
- Senate Finance Committee confirmation hearing on Daniel Werfel to be IRS commissioner, 10:30 a.m., 215 Dirksen.
Thursday, Feb. 16:
- Senate Agriculture Committee hearing on 2023 farm bill nutrition programs, 10 a.m., 328-A Russell.
- Senate Finance Committee hearing on trade laws, 10:30 a.m., 215 Dirksen.
- Bureau of Labor Statistics release of producer price index for January, 8:30 a.m., bls.gov.
Friday, Feb. 17:
- Congressional Budget Office Director Phillip Swagel online address to Bipartisan Policy Center, 10 a.m.., bipartisanpolicy.org
Yes, China Is Probing Our Defenses
by Clare M. Lopez
Newsmax
February 8, 2023
https://lopez.pundicity.com/
The Chinese Communist Party (CCP)'s brazen intrusion into U.S. air space in early February 2023 provided the Chinese valuable streams of information. Clearly, the balloon first spotted over the continental U.S. on Feb. 1 was on a surveillance mission.
It departed the Chinese mainland on Jan. 21, traversed the Pacific Ocean, entered U.S. air space over Alaska's Aleutian Islands, and then, after drifting down Canada's west coast, entered continental U.S. air space. The White House reportedly was aware of the balloon from Jan. 28.
The Department of Defense (DOD) surely was tracking the balloon from when it left Asia. NORAD (North American Aerospace Defense Command), a joint Canadian-American defense team, would have picked it up as it approached North America.
Neither the Biden White House/DOD nor the Canadian government said anything publicly about the CCP balloon for over a week — until an American near Billings, Montana, spotted it on Feb. 1. The following day, a local Montana newspaper published a photo report about it.
That publicity alone seems to have prodded the Pentagon finally to confirm the existence of the balloon late Feb. 2. President Joe Biden never did speak formally from the White House to the American people about the Chinese incursion, but told reporters that he gave orders on Feb. 1 to shoot down the balloon.
Senior U.S. military advisers, including Defense Secretary Lloyd Austin and Chairman of the Joint Chiefs of Staff Gen. Mark Milley reportedly pushed back against their commander-in-chief, insisting that shooting down the balloon could put civilians on the ground at risk from falling debris.
So, they decided to wait until Feb. 4, when after growing public pressure, media coverage, and outrage from Republican lawmakers, the Biden administration finally allowed a U.S. fighter jet to shoot down the balloon off the coast of South Carolina. Salvage operations to recover the balloon's sensor package continue as of this writing.
What can we conclude from this debacle of a performance by the Biden administration?
It's likely that in addition to whatever intelligence collection mission this spy balloon may have had, this was also and perhaps even primarily a CCP psychological operation against the American public.
We know now there have been other Chinese surveillance balloons flying over Asian allies including India, Japan, and the Philippines. Reportedly too, one may have crashed into the Pacific Ocean off the coast of Hawaii in fall 2022.
The Chinese Foreign Ministry belatedly admitted that the balloon shot down off South Carolina was China's but was just a weather balloon that blew off course. The Chinese then criticized the U.S. for "indiscriminate use of force" in the shooting down of its innocent weather balloon. On Feb. 6, the Chinese Foreign Ministry added that another of its "weather balloons" had inadvertently drifted off course, too, and was floating above Colombia.
The intelligence collection aspect of this spy balloon is clear: flying at about 60,000 feet over some of the U.S.'s most sensitive military bases, this balloon potentially would have been able to collect information about two out of the three legs of our nuclear defense triad.
There was a media report that the U.S. military may have disabled the balloon's sensor package capabilities, but that is not confirmed. Rick Fisher, writing at The Epoch Times, noted that even had the balloon been "merely" a weather balloon, it could have collected detailed weather information including atmospheric density and temperatures that could assist the People's Republic of China (PRC) in targeting its own ICBMs against U.S. ICBM silos in the event of nuclear war.
Beyond the intelligence collection mission, the Chinese may have been conducting a psychological operation, too. Breitbart writes that the Biden administration, including the U.S. military, chose to keep quiet about the balloon so as not to ruin a planned trip to Beijing by Secretary of State Antony Blinken.
Did Beijing expect that would be the Biden administration response? Did China fly this balloon — which was maneuvered remotely on its journey — at an altitude it knew would be visible to Americans on the ground? Was that a deliberate effort to ensure we all would realize our government was not telling us or doing anything about it?
China's brazen disregard for international law and U.S. territorial integrity indicates a more sophisticated operation than just intelligence collection. It indicates that Beijing expected our national leadership would do nothing, just as it has done and said nothing about the non-security of our southern border, over which flow tons of deadly fentanyl that originates in China.
China wanted to be sure that the American public and the world would see what China could get away with and that our government cannot be trusted to defend our borders or our air space. The objective of this psy op: to degrade any remaining trust an already demoralized American public may yet have in our leadership, civilian or military.
So, the CCP achieves multiple objectives: whatever intelligence it succeeded in obtaining, but more importantly, displaying for us Americans and all the world our massive security vulnerability.
Either the military did not have the fighter aircraft or interceptor missiles capability in place to take down a spy balloon belonging to our most aggressive and dangerous adversary, or more disturbingly, U.S. political leadership lacked the resolve to take on China and potentially upset Beijing before Secretary Blinken could rack up his photo op in Beijing.
China has shown the American people, other rogue actors, and our friends and allies, that there is no one who will defend us against a hostile enemy that intruded into our country's sovereign air space. We deserve better and must demand better from our nation's leaders.
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