Another boost for the military, more
hullabaloo over crack pipes, and a plan to defang the debt ceiling.
Here's what you need to know.
Biden to Request More Than $770 Billion for
Defense in 2023: Report
President Joe Biden’s 2023 budget request to Congress is
expected to include more than $770 billion for defense spending,
according to a
report from Reuters’ Mike Stone Wednesday.
The topline figure, which is still under negotiation, includes
funding for both the military and for weapons-related activities at
the Department of Energy. If the number holds, it would exceed the
record defense budget requests made during the administration of
former President Donald Trump.
Signed into law in December, the National Defense Authorization
Act for the current fiscal year totaled $768 billion, roughly $25
billion more than the Biden White House requested. Congress plans
to add another $5 billion or so for defense in its 2022 budget
bill, which is expected to become law next month.
Liberals disappointed: While defense hawks and military
contractors are no doubt pleased with the news, progressive
Democrats were quick to express their disappointment with the
possibility of a military budget that continues to increase. "This
is absurd," tweeted
Rep. Pramila Jayapal (D-WA), chair of the Congressional Progressive
Caucus. "It's time to stop pumping billions more each year into the
bloated Pentagon budget. We can and must cut defense spending and
invest in our communities, families, and climate."
Rubio Holds Up Funding Bill Over Crack
Pipes
Congress is facing a deadline of Friday midnight to pass a
stop-gap funding bill and avoid a shutdown, but a handful of
Republican senators are slowing the effort to get a quick vote on a
continuing resolution that would keep the government open until
March 11.
While Republican Sen. Marsha Blackburn of Tennessee has dropped
her hold on the stop-gap bill after receiving assurances from the
Department of Health and Human Services that federal funds will not
be used to provide crack pipes to drug users, Sen. Marco Rubio
(R-LF) is now pushing a separate piece of legislation that would
prohibit the federal government from supplying pipes and other
paraphernalia to drug users.
The Preventing Illicit Paraphernalia for Exchange Systems
(PIPES) Act, introduced by Rubio and Democratic Sen. Joe Manchin
(WV), would make it illegal to use federal funding to "to purchase
needles or syringes for the injection of any illegal drug, unless
there is a significant risk of hepatitis infection or HIV outbreak
due to injection drug use." Leaders are reportedly checking with
all 100 senators to see if there are any objections; if not, the
bill could pass on an expedited basis this week.
"My hope is we can just pass it without anybody objecting to it.
Especially since the administration is already claiming they don't
need it — they're not going to do that," Rubio said.
In addition to Rubio’s bill, a group of conservatives led by
Sen. Mike Lee of Utah are demanding a vote on an amendment that
would block vaccine mandates. And Sen. Mike Braun (R-IN) wants a
vote on an amendment that would require Congress to balance the
federal budget. Neither amendment is expected to pass.
The bottom line: Once again, Congress is cutting it close
on a vote to avoid a government shutdown. But the delays should be
short-lived, and the funding bill is expected to pass before the
deadline. "It looks to me like we’re on a glide path to getting it
done pretty quick," Sen. John Cornyn (R-TX) told
reporters.
Number of the Day: 3.8%
Retail sales rose 3.8% in January, the Commerce Department
reported on Wednesday, the largest increase in 10 months. The
results were stronger than expected, even after accounting for
inflation, and are being seen as a positive sign for the strength
of the economic recovery.
"Inflation and the omicron surge did not deter American
consumers from beginning the year on a strong note as retail sales
rebounded sharply in January," economist Tuan Nguyen of the
consulting firm RSM
writes. "The beginning of a post-pandemic world
seems to be closer than ever. With that, as fiscal and monetary
policy measures continue to fade, we should expect retail sales
growth to return to its pre-pandemic average relatively soon."
A Plan to Overhaul the Debt Ceiling
Aiming to reduce the risk of a financial disaster, a bicameral
group of Democratic lawmakers introduced a bill Wednesday that
would change the way Congress deals with the legal limit on the
national debt.
The Debt Ceiling Reform Act would empower the Treasury
Department secretary to issue new debt when spending levels get
close to the limit, following notification of Congress by the
president.
The bill’s backers emphasized that the legislation is intended
to limit the political games that can be played over the debt
limit, but Congress would still maintain a degree of control by
retaining the right to override the president. "It would not
eliminate the debt ceiling," Rep. Brendan Boyle (D-PA) said at a
hearing Wednesday. "It would take it away from this increasing
dysfunction we see in Congress."
"The debt ceiling provides no benefit to our nation, yet it has
the potential to cause catastrophic consequences for all
Americans," said House Budget Committee Chair Rep. John Yarmuth
(D-KY), who helped introduce the bill. "The Debt Ceiling Reform Act
will make much-needed reforms to end this political brinkmanship
and ensure that our nation will always honor our financial
commitments and provide the economic stability the American people
deserve from their government."
Speaking against the proposal, former Office of Management and
Budget Director Mick Mulvaney said that lawmakers need the pressure
the debt ceiling provides. "A debt limit creates a natural point in
time for Congress to account for how out-of-control spending has
become and to, potentially, do something about that," the Trump
administration official said in his prepared testimony. "It is
seemingly the only real inflection point when Congress decides to
take budgeting seriously. That’s the very least the federal
government owes American taxpayers."
Quote of the Day
"We’ve made tremendous progress in our ability to protect
ourselves against COVID-19. Seventy-five percent — three out of
every four adults — are fully vaccinated, and two-thirds of
eligible adults have gotten their booster shot.
"For all Americans, both the vaccinated and unvaccinated, we
have strong tools, including free at-home tests and free
high-quality masks that provide added layers of protection.
"And importantly, we have a range of effective treatments and
therapeutics, including pills that are up to 90 percent effective
at preventing severe illness and hospitalization.
"As a result of all this progress and the tools we now have,
we’re moving toward a time when COVID isn’t a crisis but is
something we can protect against and treat."
— White House COVID-19 Response Coordinator Jeff Zients,
speaking to reporters Wednesday.
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News
Senate Democrats Plot March Legislative Push on
Inflation – Politico
Some Lawmakers Want to Halt Gas Tax Amid High Inflation.
Others See a Gimmick – Wall Street Journal
Fed Minutes Show Central Bank Ready to Raise Rates, Shrink
Balance Sheet Soon – CNBC
Biden’s Fed Nominees Left in Limbo in Standoff Over
Raskin – Bloomberg
White House Criticizes GOP for Blocking Biden Fed Nominees
Amid Inflation – The Hill
Democrats’ Climate Plan Languishes, Putting Hundreds of
Billions in Private Investment on Hold – Washington
Post
High Gas Costs From Ukraine Threat Pose Biden Political
Risk – Associated Press
Russia-Ukraine Conflict Could Cause Inflation to Hit 10%, New
Analysis Finds – CNN
Election Experts Sound Alarms as Costs Escalate and Funding
Dwindles – Washington Post
Biden to Seek More Than $770 Billion in 2023 Defense Budget,
Sources Say – Reuters
CDC Weighs Plans to Lift Indoor Masking
Recommendations – Roll Call
Biden Administration Weighs Changes to Trump-Era Medicare
Policy – Politico
GOP Eyes Ambitious Agenda if House Flips – The
Hill
GOP Culture War Attacks ‘Alarmingly Potent,’ DCCC
Warns – Politico
Inside the Tactical Tug of War Over the Controversial
Alzheimer’s Drug – Kaiser Health News
Views and Analysis
What Is Causing Inflation? Economists Point Fingers at
Different Culprits – Phil McCausland, NBC
News
The IRS Is In The Headlines. That Is Not A Good
Thing – Howard Gleckman, Tax Policy Center
The Return of Deficit Economics – Karl W. Smith,
Bloomberg
The Fed’s Battle to Fight Inflation Could Cause More Pain
Than Higher Prices – Chris Isidore, CNN
Bond Funds Lurk as a Challenge to Fed’s Inflation
Fight – Eric Balchunas, Bloomberg
Should Congress Trade Temporary Assistance for Needy Families
(TANF) for a Child Allowance? – Elaine Maag and Heather
Hahn, Tax Policy Center
When Nothing Beats Something – Stuart Rothenberg, Roll
Call
Taxpayers Miss Out on Shipping’s Pandemic Profit
Bonanza – Chris Bryant, Bloomberg
On Helping People Hear Better, Biden Lets Markets Have Their
Say – Charles Lane, Washington Post