What to Know in Washington: Biden Wants GOP Plan Before Easter

President Joe Biden responded to House Speaker Kevin McCarthy’s demands that he begin negotiations over the debt ceiling by challenging Republicans to produce a public budget plan before departing Thursday for a two-week Easter recess.

The request — conveyed in a letter sent to McCarthy (R-Calif.) and posted by the White House to its social media channels — said that Republicans producing the plan would help lay the framework for an “in-depth conversation” once lawmakers returned in April.

“For that conversation to be productive, we should both tell the American people what we are for,” Biden said.

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Biden speaks with reporters as he returns to the White House on Tuesday.

Biden did not explicitly say that he would be unwilling to meet McCarthy if Republicans refused to produce a budget, and White House aides also declined to make that threat earlier in the day.

Yet the White House is eager for GOP lawmakers to outline a proposal that could earn the approval of their narrow majority, believing such a plan would include cuts to politically popular government programs.

Republicans have said they would miss their previous deadline of mid April to produce a 10-year budget plan, blaming the White House for producing their document a month past the statutory deadline.

Earlier Tuesday, Biden indicated there would be little to discuss if Republicans did not release a full budget, and bristled at McCarthy’s suggestion that they begin talks on a list of spending cuts and regulatory changes outlined by Republicans.

“I don’t know what we’re going to meet on,” Biden told reporters before boarding Air Force One after speaking in Durham, North Carolina. “The deal was we each put down our own budget.” Erik Wasson and Justin Sink have the story.

Republicans are floating legislation that would ease energy permitting in exchange for raising the US debt ceiling, creating a potential path to avoid a default.

The White House is still insisting on a bill that simply raises the debt ceiling without conditions. But an agreement on energy permitting could benefit projects ranging from pipelines and oil refining to renewable power projects, making a deal attractive to both parties.

McCarthy wrote to Biden on Tuesday, proposing attaching to the debt ceiling bill “measures to lower energy costs, make America energy independent” in addition to previously requested cuts and caps to domestic discretionary spending. Wasson and Ari Natter have more.

Happening on the Hill

CONGRESS’ SCHEDULE

• The House gathers at 10 a.m. to continue consideration of a GOP energy package.
• The Senate convenes at 10 a.m. for vote on passage of measure to repeal the 1991 and 2002 authorizations of use of military force in Iraq.

Kaine Vindicated in Years-Long Fight to Repeal Iraq War Powers

Tim Kaine (D-Va.) stood before 300 graduating cadets at the Virginia Military Institute in 2016 when he was roundly booed for criticizing President Barack Obama and colleagues for pursuing a war against Islamic State without a vote in Congress.

Homeland Security Funding Hinges on a New Mix of Four Lawmakers

Negotiations over how much to spend on protecting the homeland against threats face a new hurdle in already difficult territory: Most of the lawmakers involved are new to the gig.

Credit Suisse Still Aiding Tax Evasion, Senate Panel Says

Credit Suisse continues to help rich Americans hide assets from the IRS nearly a decade after a unit pleaded guilty to tax-evasion conspiracy, the Senate Finance Committee said.

No-Fly List for Unruly Passengers Sought in Renewed Legislation

Lawmakers will push for a no-fly list for travelers who assault flight crew on an aircraft under a bipartisan bill set to be reintroduced Wednesday in response to an increased number of incidents in recent years.

China Says Tsai-McCarthy Meeting Would Be Severe Provocation

Any meeting between Taiwan leader Tsai Ing-wen and Speaker McCarthy would be a severe provocation, said Zhu Fenglian, spokeswoman for China’s Taiwan Affairs Office.

House Republicans Hound EPA’s Regan Over Waters of the US Rule

House Republicans from Western states pressed EPA Administrator Michael Regan on Tuesday about his agency’s signature water rule, saying it doesn’t adequately consider the needs of their states.

Health Secretary Vows to Press Ahead on Private Medicare Changes

The head of the Department of Health and Human Services defended plans to overhaul parts of Medicare’s managed care program in the face of attack ads from some Republicans and industry groups.

Hospitals Would See Medicaid Funds Slashed If Hill Fails to Act

Over $8 billion in federal funding for safety net hospitals will be cut starting Oct. 1 unless Congress postpones or delays the latest reduction in Medicaid Disproportionate Share Hospital payments.

GOP Mulls Options for Deal on State and Local Tax Cap

Republican lawmakers are hashing out ways to compromise on the state and local tax deduction cap in the runup to a deal they’re looking to make before 2024.

CFTC Chairman Reiterates Assertion That Ether Is a Commodity

The chairman of the Commodity Futures Trading Commission reiterated his view that Ether is a commodity, despite recent comments from another markets regulator suggesting the cryptocurrency is a security.

Elections, Politics & Probes

Bank Failures Boost Tim Scott’s Visibility as He Mulls 2024 Run

When the American Bankers Association met in Washington recently, the speakers included the A list of public officials who oversee the financial sector, including Treasury Secretary Janet Yellen and the current and former chairs of key congressional committees.

Biden Says He Intends to ‘Expose Those’ Blocking New Gun Laws

Biden said he would put the spotlight on those blocking the passage of new gun laws, as he expressed frustration with the lack of legislative progress on the issue, a day after a mass shooting at a grade school in Nashville, Tennessee.

New Gift Disclosure Rules Extend to Supreme Court Justices

The federal judiciary has tightened financial disclosure guidance for Supreme Court justices and other judges covering certain trips, meals, and other personal hospitality paid for by others.

Biden Touts Wolfspeed Chip Factory in Trip to 2024 Battleground

Biden touted legislation providing subsidies for semiconductors Tuesday in North Carolina, highlighting his economic agenda in a crucial battleground state for the upcoming presidential election.

Trump New York Grand Jury Won’t Meet on the Case This Week

The New York state grand jury investigating Donald Trump over a hush money payment to a porn star won’t reconvene Wednesday or hear any matters regarding the former president for the rest of the week, according to a person with knowledge of the matter.

Around the Administration

BIDEN’S AGENDA

• Biden at 11:20 a.m. at the White House hosts the Summit for Democracy Virtual Plenary on Democracy Delivering on Global Challenges.
• At 2:45 p.m., Biden welcomes President Alberto Fernández of Argentina for a bilateral meeting.
• The president at 5 p.m. hosts a reception celebrating Greek Independence Day at the White House.
• At 1 p.m., White House Press Secretary Karine Jean-Pierre gives a briefing.

Biden Says Markets ‘Settling’ Down as He Sees Bank Crisis Ease

Biden expressed confidence that the crisis involving US regional banks was easing but said he was not sure legislation addressing the situation would get through Congress.

• The Biden administration is preparing to call for federal banking regulators to impose new rules on midsize banks following Silicon Valley Bank’s collapse, The Washington Post reports, citing two unidentified people aware of internal discussions. Read more

Fed Watchdog Launches Investigation Into SVB Supervision

The Federal Reserve’s internal watchdog has launched its own review of the failure of Silicon Valley Bank, a spokesman confirmed, separate from the probe that the Fed’s vice chair for supervision is leading.

Biden Aide Speaks With China Counterpart as Tension Spikes

White House National Security Advisor Jake Sullivan spoke with China’s top diplomat Wang Yi on Friday, people familiar with the matter said, as the two sides look to ease tensions that have continued to build in recent months.

Biden to Netanyahu: Find ‘Genuine Compromise’ on Court Plan

Biden said he had strong concerns about Israel’s democracy and expressed hope that Israeli Prime Minister Benjamin Netanyahu would reach a compromise with his opponents over a planned judicial overhaul that has sparked widespread protests in the country.

US Hypersonic Missile Test Marred by In-Flight Data Loss

The second test flight of Lockheed Martin’s hypersonic missile prototype was marred by the weapon’s failure to transmit in-flight performance data, two people familiar with the results said, a setback for US efforts to catch up with China and Russia in a key weapons capability.

Soldier Who Led Military Malpractice Fight Gets Claim Denied

He inspired a new law that allows troops to file claims with the military services for medical malpractice. But Army Green Beret Richard Stayskal, who suffers from Stage 4 lung cancer, got a dose of bad news: The Army denied his own claim.

Abortion ‘Chaos State’ Erupts as Dueling Attorneys General Clash

Top law enforcement officers in red and blue states are leaning on never-before-tested legal strategies to probe the boundaries of reproductive restrictions nationwide since the Supreme Court overturned the constitutional right to an abortion.

Green Card Seekers Hope Application Policy Fix Will Ease Backlog

Several hundred Indian immigrants who previously applied for green cards are asking a federal appeals court to overturn a government policy that they say has added nearly a decade to their wait to become permanent residents.

To contact the reporter on this story: Michaela Ross in Washington at mross@bgov.com

To contact the editors responsible for this story: Giuseppe Macri at gmacri@bgov.com; Andrew Small at asmall@bgov.com