Harris’ Team Meets With Shapiro: What to Know in Washington

Kamala Harris is meeting with potential running mates — and one name is raising opposition from labor groups. Meanwhile, House Republicans aren’t wasting the opportunity to send money to their home states, a BGOV analysis found — even as GOP fiscal hawks have long criticized the earmarking process. But first, you should know:

• Lawmakers took a major step toward addressing AI’s risks and benefits in a slew of votes yesterday, but the measures face growing partisan discord.
• This could be a perilous week for four House incumbents facing primary challengers who have a shot at ousting them.
• Boeing has a new CEO who faces a mountain of challenges in his mission to turn the troubled planemaker around.

Harris Nears End of VP Search as Trump Hammers Migration Record

As Vice President Kamala Harris’ search for a running mate nears its end, her representatives met with Pennsylvania Gov. Josh Shapiro.

The meeting yesterday is part of Harris’ selection process and took place without the vice president, said people familiar with the matter. Shapiro, Arizona Sen. Mark Kelly, and Minnesota Gov. Tim Walz are among the top contenders. A person familiar with the meeting said it was a routine part of the deliberations and warned against using it to draw conclusions about Harris’ ultimate selection.

Labor groups, meanwhile, have expressed worries about Kelly joining the ticket, a warning sign as Harris looks to harness President Joe Biden’s clout with major unions. Harris yesterday received the support of the United Auto Workers, an influential union in battleground Michigan whose endorsement Biden worked hard to secure. Read More

As vice president Harris had a mandate to tackle problems contributing to a surge in migration from Central America to the US. Three years later, there’s little to show for the effort, an issue that is now one of her biggest liabilities.

Polling in swing states by Bloomberg News and Morning Consult has shown immigration is the second most important issue to voters, behind only the economy.

Harris’ supporters point out that her focus was limited to the root causes of migration from three countries — Honduras, Guatemala, and El Salvador — not a broad remit to fix a broken immigration system. However, Donald Trump and running mate JD Vance have already sought to hammer Harris on the issue, with Trump pledging to lead the largest deportation effort in the nation’s history and redirect local police to aid in border control. Read More

BIDEN’S SCHEDULE

• 1:30 p.m. — Press Secretary Karine Jean-Pierre will hold a briefing.
• The president has no public events.

HARRIS’S SCHEDULE

• 2:20 pm.. — The vice president will deliver the eulogy for the late Rep. Sheila Jackson Lee (D-Texas) in Houston.

CONGRESS’ AGENDA

• The Senate meets at 11 a.m. to take a test vote on bipartisan tax legislation.
• For the full detailed agenda, read BGOV’s Congress Tracker.

Nonprofits Miss Out as GOP Steers Earmarks

Republicans stand to bring home nearly $5 billion of the House’s $8 billion in earmarked funds in government-funding bills for fiscal 2025. And as the GOP has learned to love earmarks again, they’ve also steered them in a more ideologically conservative direction.

The 4,829 earmarks in the House’s spending bills highlight Republicans’ preference for infrastructure and aversion to socially liberal projects, a BGOV analysis has found. Hundreds of millions of dollars would go to dams and housing, while nonprofits faced new restrictions. None of the projects mention LGBTQ causes, after conservatives successfully led a charge to remove them from the previous year’s funding bills.

The BGOV analysis put into sharp relief how Republicans are matching their rhetoric on cutting social spending by denying funding for many Democratic priorities. It’s a notable shift in the handling of congressional earmarks, which have typically had bipartisan support but have become polarized in a highly partisan Congress.

• Republicans stand to bring home 62% of the earmarked funding in the House’s appropriations bills. Democrats included 37% of the money, while bipartisan groups stand to bring home 1%.
• The $8 billion total is a 9% increase compared to the $7.4 billion included in the chamber’s initial funding bills last year — contrasting with a broader push by Republicans to cut agency budgets.

Rep. James Comer (R-Ky.) stands to bring home the most earmarked cash of any House member, with $241.3 million in project funding across 12 projects. Almost all that money comes from a $218 million earmark for the Army Corps of Engineers to finish work on a new lock on the Tennessee River. Read More

More Happening on the Hill

AI Bills Advance in Congress’ Biggest Yet Step to Address Risks

The Senate Commerce Committee on Wednesday approved nine bills that seek to promote AI research and development and foster collaboration between government, industry, and civil society to establish guidelines on use of the rapidly evolving technology.

Senate Punts Defense Policy Bill as GOP Blames Election Politics

Senate Armed Services Committee Chairman Jack Reed (D-R.I.) said he “very much so” expects the bill to come to the Senate floor in September.

Senators Probe Secret Service on Trump, Biden Protection

Senators want to know if the Secret Service is treating Republicans and Democrats equally approving spending for the agency.

Partisan Gap Persists on EVs Despite Permitting Bill Progress

Partisan fault lines emerged Wednesday in a Senate panel over federal support for electric vehicles, even as a different panel was approving a bill that would ease some of the knottiest problems in EV deployment.

GOP Senators Blast IRS Decision to Create Direct File Tool

Almost two dozen GOP Senators rebuked the creation of the IRS’s free tax filing tool in a letter to the IRS Commissioner Wednesday.

Powell Asked by McHenry to Withdraw, Re-Propose Basel III

A group of House Republicans tell Federal Reserve Chair Jerome Powell the Basel III endgame proposal lacks the necessary evidence to “overturn the current methods used for calculating risk-based capital requirements.”

OpenAI Says ‘Dedicated’ to Safety in Letter to US Lawmakers

OpenAI, responding to questions from US lawmakers, said it’s dedicated to making sure its powerful AI tools don’t cause harm, and that employees have ways to raise concerns about safety practices.

Four House Members at Risk in Perilous Primaries

For House incumbents, this could be the most precarious week of the 2024 congressional primary season, as credible challengers have a shot at turning four of them into lame ducks.

They’re all in districts with one-party domination, so the contests won’t affect control of Congress, but may change the characteristics of who’s serving. The four targeted lawmakers are vulnerable for different reasons:

• Rep. Andy Ogles (R-Tenn.) drew a well-funded challenge after he and other Freedom Caucus members clashed with former Speaker Kevin McCarthy (R-Calif.);
• Rep. Cori Bush (D-Mo.), a member of “The Squad” bloc of progressives, is the target of an opposition advertising barrage led by an arm of the American Israel Public Affairs Committee, which made the primary of Rep. Jamaal Bowman (D-N.Y.) the most expensive House primary in history;
• Rep. Dan Newhouse (Wash.) has a Donald Trump problem — he’s a rare Republican re-elected in 2022 after voting to impeach; and
• Some fellow Democrats want the Black-plurality Detroit-area seat of Rep. Shri Thanedar (Mich.) to have a Black member of Congress.

“The vast majority of House members who seek renomination get it,” said Kyle Kondik, the managing editor of Sabato’s Crystal Ball at the University of Virginia Center for Politics. “Typically, primary losers need to have many different factors breaking against them.” Read More

More People & Politics

Silicon Valley Heavyweights Back Harris to Counter GOP Uptick

More than 200 venture capitalists publicly backed Kamala Harris’ White House bid on Wednesday, saying Silicon Valley and other industries would collapse without “strong, trustworthy institutions.”

Harris Snags Top Treasury Official as She Reshapes Campaign

Vice President Kamala Harris has hired Treasury Department official Brian Nelson for her campaign, the first major staff addition since taking over the operation following President Joe Biden’s decision to bow out.

Trump Vows to Cut Taxes on Social Security in Bid to Woo Seniors

Donald Trump pledged to eliminate taxes on Social Security payments for seniors, a move that would cut levies for some elderly Americans but further strain benefits for those who have yet to retire.

Trump Says Gag Order Gives Harris Unfair ‘Felon’ Attack Boost

Donald Trump asked a New York appeals court to remove a gag order against him in his hush-money criminal case so he can fully respond to Kamala Harris’ claim that the November election is a choice between a prosecutor and a “convicted felon.”

‘Unborn’ and Other Word Wars Launch Abortion Ballot Campaigns

Before voters weigh in on banning abortion or guaranteeing the right to abortion, states have to make decisions about how official initiative descriptions will be worded.

Hamadeh Wins GOP Primary for Arizona House Seat: AP

Former prosecutor Abe Hamadeh wins the Republican primary in Arizona’s 8th Congressional District, AP projects.

Also in the News

Drugmakers, Medicare Conclude Talks to Slash Spiraling Costs

The Biden administration and the pharmaceutical industry have wrapped up the first round of landmark drug price negotiations after engaging in talks that may lead to lower prices for some of the most widely used drugs covered under Medicare.

Election Throws Potential Wrench Into Capital One-Discover Deal

Capital One Financial Corp.‘s proposed $35 billion acquisition of Discover Financial Services will require a new administration to quickly show its cards on bank merger policy if the approval drags into next year.

New Boeing CEO Faces Long To-Do List at Troubled Planemaker

Boeing Co.’s next leader Kelly Ortberg faces a mountain of challenges that stand in the way of his mission: restoring lost swagger at the US airplane manufacturer after years of operational stumbles and financial losses.

Google Escapes Suit From RNC Over Fundraiser Email Filtering

A Sacramento federal judge tossed the Republican National Committee’s complaint against Google LLC, saying it failed to argue that state business law prevents the company from filtering its fundraising emails.

Novo Nordisk Suffers Loss Against Biden Drug Price Plan

Novo Nordisk’s attempt to block a government drug price-setting program was denied by a federal judge Wednesday, handing another win to the Biden administration as it continues to implement its plan aimed at curbing Medicare drug costs.

US Patience ‘Running Out’ on Venezuela Vote as Sanctions Weighed

The US and other nations are “running out of patience” with Venezuela over the release of detailed voting data, Biden administration officials said Wednesday, as pressure grows on authorities in Caracas to prove the victory claimed by Nicolas Maduro.

To contact the reporters on this story: Brandon Lee in Washington at blee@bgov.com; Jeannie Baumann in Washington at jbaumann@bloombergindustry.com

To contact the editor responsible for this story: Kayla Sharpe at ksharpe@bloombergindustry.com