What to Know in Washington: Defense Bill Heads to House Floor

NDAA Heads to House Floor

Must-pass 2025 defense authorization legislation heads to the House floor after the House Armed Services approved the fiscal 2025 defense authorization bill by a vote of 57-1 late Wednesday.

The bill kicks off negotiations on the annual defense policy legislation, considered one of the very few must-pass because it authorizes Pentagon programs and pay for troops.

The Republican-led Armed Services panel backed restrictions on the F-35 Joint Strike Fighter program, seeking to rein in the world’s most expensive weapons program plagued by cost growth and software deficiencies.

The House is expected to consider the measure, and likely hundreds of amendments, at the beginning of June. The Senate Armed Services Committee will consider its version June 12. Read More

BIDEN’S SCHEDULE
10 a.m. — President Joe Biden and First Lady Jill Biden will greet Kenyan President William Ruto and First Lady Rachel Ruto at the White House. Vice President Kamala Harris and Second Gentleman Doug Emhoff will also participate.
11 a.m. — Biden and Ruto will hold a bilateral meeting.
12:30 p.m. Biden and Ruto will hold a joint press conference.
7:45 p.m. — The Bidens will host the Rutos for a state dinner on the south lawn. Harris and Emhoff will also attend.
9 p.m. — The Bidens will host the Rutos for an entertainment reception.

• Read More about the state visit.

CONGRESS’ AGENDA

• 9 a.m. — The House returns to vote on blocking the Federal Reserve from creating a digital dollar.
• 10 a.m. — Senators convene to vote on the Air Force’s undersecretary’s nomination as well as a procedural vote on border security legislation.
• For more details read BGOV’s Congress Tracker.

From BGOV’s Hill Reporters

Curbing Chinese ownership of farmland has become a popular rallying cry for lawmakers looking to prove their tough-on-Beijing chops ahead of November elections. But some subsidiaries of Chinese agriculture companies are fighting back, warning lawmakers against sweeping legislation that could harm their businesses and the economy.

• A political action committee affiliated with seed company Syngenta — which is owned by Chinese state-owned enterprise Sinochem — has already spent $355,150 this election cycle, including on re-election bids for some of the very members publicly pushing to ban adversaries’ ownership of American farms. That’s more than it spent in the entirety of the 2022 and 2020 cycles. Read More

The House advanced sweeping cryptocurrency legislation on Wednesday with bipartisan support. However, critics — including the White House — oppose the bill that they say is too friendly to the industry.

• The bill passed 279-136 and 71 Democrats joined with almost all Republicans to support it. The measure would set a new regulatory framework by putting popular tokens Bitcoin and Ether under the jurisdiction of the CFTC and move oversight away from the SEC, which has taken a hard line toward crypto regulation. Read More

Artificial intelligence workforce legislation will come out today to train future generations of workers in an effort to drive AI advancements across industries including health care to agriculture and cybersecurity. Under Senate Commerce Chair Maria Cantwell (D-Wash.) and committee member Jerry Moran (R-Kan.)’s bill, the federal government would award scholarships for higher education students to study AI. Read More

Congress, more than a year after a fiery train derailment hit an Ohio community with toxic fumes, is moving to require a study of the health effects and provide some tax relief to residents. Read More

More Happening on the Hill

Rick Scott Enters Race to Succeed McConnell as GOP Senate Leader

Florida Senator Rick Scott announced in a letter to colleagues his bid for Senate Republican leader.

Warren Seeks DOJ, IRS Probe of Intuit on Disclosure Reports

The IRS and other federal agencies must investigate Intuit Inc. and other tax-prep companies over new alleged disclosures of sensitive taxpayer information, Democrats led by Sen. Elizabeth Warren (D-Mass.) wrote to top Biden administration officials in a letter disclosed Wednesday.

GOP Lawmakers Probe White House’s Pro-Labor Pension Initiative

Congressional Republicans are investigating the US Labor Department’s involvement in a White House-convened meeting of pension asset owners who support “strong labor commitments,” a move the lawmakers say is a potential fiduciary duty breach.

Justices Forced to Explain Shadow Docket Rulings Under New Bill

Senate Democrats are pushing new legislation to make US Supreme Court decisions on emergency requests that come to the court through its so-called shadow docket more transparent.

College Athletes Barred From Employment Status in New GOP Bill

A new Republican bill to block student-athletes from being classified as employees comes as pending court cases and organizing efforts have sparked a debate in Congress over players’ employment rights.

Senator Brown Writes DoorDash CEO on Firm’s Loans to Businesses

Senate Banking Committee Chair Sherrod Brown tells DoorDash CEO Tony Xu he’s concerned about the platform advertising merchant cash advance products to small businesses, according to a letter.

American-Indian Judicial Nomination Stalled By Blue Slip Hold Up

The White House’s nominee to be the first American-Indian judge on Montana’s US district court wasn’t given a hearing Wednesday as partisan frictions between the state’s Republican senator and the Biden administration disrupt the nomination.

State of the Economy

White House Touts Fed Independence as Trump Advisers Eye Changes

President Joe Biden’s administration emphasized its “unwavering support” for the independence of central banks, following heightened speculation over how Donald Trump could ramp up pressure on the Federal Reserve if he wins another term in the White House.

Goldman Now Sees US Debt-Cost Ratio Rising Into Danger Zone

Goldman Sachs Group Inc. updated its longer-term US fiscal outlook Wednesday, with its new projections seeing a key metric of debt sustainability head to historically extreme levels.

Fed’s Inflation Debate Shifts to How Much Goods Prices Can Drop

As Federal Reserve officials stare down the last mile in their campaign against inflation, one key question is becoming increasingly central to the debate: Will goods prices continue to fall?

People, Politics, and Probes

AI Use in Campaign Ads Would Have to Be Disclosed Under FCC Plan

Political campaigns would be required to disclose the use of AI-generated audio, video, and images in radio and TV ads under a Federal Communications Commission proposal released Wednesday.

Nikki Haley Says She Will Vote for Donald Trump in November

Nikki Haley, who challenged Donald Trump for the Republican nomination, said she plans to vote for her former rival in November, becoming the latest critic of the former president to back his White House bid.

Hunter Biden Criminal Tax Trial Postponed to Sept. 5 in LA

Hunter Biden’s criminal trial on tax violations will be postponed until Sept. 5, the federal judge overseeing the case ruled.

NRA’s Frazer Out as Legal Chief Amid Leadership Overhaul

Michael Blaz was tapped as the National Rifle Association of America’s new general counsel as the gun rights group installs a new slate of leaders.

Foreign Affairs

Biden Moves to Get Chips Act Funding for Kenya as Ruto Visits

The US is proposing to make Kenya the first country in Africa to benefit from funding in the Chips and Science Act, according to a White House official, underscoring the countries’ desire to cement tech industry relationships.

US Calls for Coordinated Action by Lenders to Indebted Nations

The US plans to announce a broad outline for helping developing nations ease mounting debt burdens, particularly owed to China, which it says have stifled investments in critical sectors like climate adaptation.

Raisi Funeral Shows Iran’s Success at Blunting US Isolation Push

The list of foreign dignitaries who attended Iranian PresidentEbrahim Raisi’s funeral on Wednesday underscored how Tehran’s efforts to blunt US sanctions and mend ties with its neighbors have paid off.

What Else We’re Watching

CFPB Avoids Fights Treating Buy Now, Pay Later Like Credit Cards

Existing consumer protection practices at the largest “buy now, pay later” companies are likely to preclude potential litigation over a new federal rule treating the companies like credit card issuers.

Second US Human Bird Flu Infection Reported in Michigan

A Michigan farmworker tested positive with bird flu, the second person to contract the potentially lethal virus that has run rampant in US cattle.

Expedited Border Crossing Program Rulings Can Get Court Review

Decisions by the US Customs and Border Protection to revoke approvals under a quick border entry program known as SENTRI can be subject to court review, a split Ninth Circuit panel ruled.

Justice Department Seeks Breakup of Live Nation-Ticketmaster

The US Justice Department and a group of states will sue Live Nation Entertainment Inc. for antitrust violations related to Ticketmaster’s unrivaled control of concert ticket sales, according to people familiar with the case.

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 editors responsible for this story: Kayla Sharpe at ksharpe@bloombergindustry.com; Giuseppe Macri at gmacri@bgov.com