A cybersecurity firm has concluded that Chinese hackers penetrated the Vatican’s computer networks in recent months during the lead-up to negotiations between the Catholic Church and Beijing.

The attack, reported Tuesday by the Massachusetts-based firm Recorded Future, comes as the Chinese government works to strengthen its control over religious groups in the country. It also comes before September negotiations regarding control over the appointment of bishops and the status of churches in China. 

The infiltration targeted the Vatican and the Holy See’s Study Mission to China, a group of informal Vatican diplomats based in Hong Kong who have been negotiating the Church’s status in China, and began in early May.

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One attack during the campaign was hidden in a fake letter from the Vatican to a Hong Kong chaplain in a particularly sophisticated attempt to replicate a letter from the official stationery of Archbishop Edgar Peña Parra. Recorded Future determined the attack was in all likelihood tied to the upcoming negotiations over the 2018 agreement.

The details of the bargain reached two years ago are still largely unknown, but it is believed to have allowed Beijing to name bishop candidates to churches but allowed the pope the final say in the selections.

Recorded Future concluded that the hacking campaign was spearheaded by RedDelta, a state-sponsored Chinese group, and that the tactics mirrored those of other Chinese-approved hacking operations in recent years. However, new techniques and computer code used in the infiltrations made it difficult to discern the source of the hack with 100 percent certainty. 

The relationship between the Holy See and Beijing has been particularly tense in the lead-up to the September talks, particularly over China’s security crackdown in Hong Kong and ongoing restrictions of religious life in China.

“The suspected intrusion into the Vatican would offer RedDelta insight into the negotiating position of the Holy See ahead of the deal’s September 2020 renewal. The targeting of the Hong Kong Study Mission and its Catholic Diocese could also provide a valuable intelligence source for both monitoring the diocese’s relations with the Vatican and its position on Hong Kong’s pro-democracy movement amidst widespread protests and the recent sweeping Hong Kong national security law,” Recorded Future wrote. 

President Xi Jinping has put a premium on boosting government oversight throughout China on a number of religions, including ordering crosses to be torn down from over a thousand churches from 2014 to 2016 and, more recently, establishing highly criticized detention centers for ethnic Uighurs, most of whom are Muslim. 

China and the Vatican have had a tense relationship in past decades, severing diplomatic ties in 1951, after which the Holy See officially recognized Taiwan. In 2014, Beijing broke with tradition and allowed the pope’s plane to fly through Chinese airspace on the way to South Korea, leading Pope FrancisPope FrancisGroup says China hackers infiltrated Vatican ahead of expected talks McCarthy calls on Pelosi to condemn ‘mob violence’ after toppling of St. Junipero Serra statue Pope Francis urges Catholic media to ‘overcome the diseases of racism, injustice and indifference’ MORE to send a message offering blessings of peace to Xi. However, tensions have ratcheted back up as Chinese officials float accusations that the church is helping pro-democracy protesters in Hong Kong.

Russia is aiming to approve a COVID-19 vaccine within weeks, although the country hasn’t released data on its vaccine tests yet, CNN reported Tuesday.

Russian officials told the outlet they are hoping to gain approval for a vaccine developed by the Moscow-based Gamaleya Institute on Aug. 10 or earlier. Once approved for public use, front-line health care workers will receive the vaccine first, the officials said.

Kirill Dmitriev, the head of Russia’s sovereign wealth fund, called the development a “Sputnik moment,” referencing when the Soviet Union launched the world’s first satellite.

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“Americans were surprised when they heard Sputnik’s beeping. It’s the same with this vaccine. Russia will have got there first,” he said, according to CNN.

The outlet noted it was unable to verify the safety or effectiveness of Russia’s vaccine without data released on its testing.

Russia said it plans to release its data for peer review and publication in early August, though critics predict the country is rushing vaccine development to keep ahead of other global powers. 

Russian officials defend the development speed, citing the pandemic and Russia’s growing number of COVID-19 cases.

The country has confirmed more than 822,000 cases and at least 13,483 deaths, according to data from Johns Hopkins University.

Russia’s vaccine would require patients to receive a second booster shot, according to CNN.

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Dozens of developers have begun vaccine trials globally, with a small amount starting large-scale trials, including in the U.S. and the U.K. But experts have cautioned that the timeline is ongoing, and developers have not set deadlines for vaccines to be ready.

Russia’s vaccine still needs to finish its second phase of testing, which officials say they expect to complete by Aug. 3. Then, the third phase of testing will be conducted at the same time that front-line health care workers are vaccinated, according to the network.

The defense ministry said that Russian soldiers have already acted as volunteers in human trials. 

Russia has denied claims that spies hacked into U.S., Canadian and U.K. labs to learn about their COVID-19 vaccination development and allegations that the country has given early vaccination access to the political and business elite, including President Vladimir PutinVladimir Vladimirovich PutinRussia aiming to approve COVID-19 vaccine within weeks: report Putin says Russian Navy closer to getting hypersonic weapons Trump talks coronavirus, arms control in phone call with Putin MORE.

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Happy Tuesday and welcome to Overnight Defense. I’m Ellen Mitchell, and here’s your nightly guide to the latest developments at the Pentagon, on Capitol Hill and beyond. CLICK HERE to subscribe to the newsletter.

THE TOPLINE: The Pentagon would get nearly $30 billion under the Senate Republicans’ coronavirus relief plan, including $8 billion for weapons systems.

The $29.4 billion for the Pentagon is included in the $1 trillion coronavirus aid package Senate Republicans released Monday night.

Democrats have already declared the bill a non-starter, but it lays out Republicans and the White House’s priorities heading into negotiations.

GOP on the defense: Republicans are defending the funding for acquisition programs as supporting the defense industrial base at a time of economic hardship and job losses, but Democrats are blasting it as a giveaway to defense contractors.

“The pandemic continues to threaten the defense industrial base and thousands of vulnerable suppliers across the country who support it,” Alyssa Pettus, press secretary for Senate Appropriations Committee Chairman Richard ShelbyRichard Craig ShelbyOvernight Defense: Senate GOP coronavirus bill includes .4B for Pentagon | US, Australia focus on China in key meeting McConnell wants FBI money out of coronavirus bill Senate GOP coronavirus bill includes .4B for Pentagon MORE (R-Ala.), said in a statement. “That puts thousands and thousands of jobs in jeopardy. The chairman believes Congress must act, not turn a blind eye.”

What the money goes to: Of the military hardware included in the bill, $686 million would go toward the Air Force’s Lockheed Martin-made F-35A fighter jet. The Air Force would also get $720 million for Lockheed C-130J transport planes and $650 million for A-10 wing replacements, which Boeing is contracted to do.

The bill would also allocate about $1.1 billion for the Navy’s Boeing-made P-8A Poseidon maritime patrol planes, as well as $1.45 billion for four expeditionary medical ships, $260 million for one expeditionary fast transport ship, $250 million for amphibious shipbuilding and $250 million for the surface combatant supplier base program.

Backfilling from the wall grab: Several of the weapons programs that would get funding previously lost money when the Trump administration took Pentagon funding to use on the southern border wall earlier this year. In February, the Pentagon announced it was redirecting $3.8 billion from programs including the F-35A, the P-8A, the expeditionary fast transport ship, the C-130J and unspecified National Guard and reserves equipment.

The GOP Senate coronavirus bill would appropriate $800 million toward the National Guard and reserves’ equipment account.

“It is also no secret that earlier this year the Trump administration abused the reprogramming authority to divert funding from military equipment and modernization accounts to pay for the president’s vanity wall,” House Armed Services Committee Chairman Adam SmithDavid (Adam) Adam SmithOvernight Defense: Senate GOP coronavirus bill includes .4B for Pentagon | US, Australia focus on China in key meeting Senate GOP coronavirus bill includes .4B for Pentagon Overnight Defense: House passes defense bill that Trump threatened to veto | Esper voices concerns about officers wearing military garb MORE (D-Wash.) said in a statement Tuesday. “Now, Republican Senators are trying to capitalize on the urgency of the moment to backfill these accounts while in the same breath arguing that unemployment benefits should be cut in the name of fiscal responsibility.”

Other hardware programs that benefit: The Army, meanwhile, would get $375 million to upgrade Stryker Double V-Hull armored fighting vehicles and $283 million for new Boeing AH–64 Apache helicopters.

The bill would also provide $319.6 million for a new battery of the missile defense system known as Terminal High Altitude Area Defense, as well as radars for the battery. Another $65.8 million would go toward hypersonic missile defense, $39.2 million for cruise missile defense, $200 million for the homeland missile defense system known as the Ground-Based Midcourse Defense system and $290 million for a space-based missile sensor layer.

Funds related to the coronavirus: Apart from the hardware, the bill would also provide $11 billion to reimburse defense contractors for coronavirus-related expenses.

The coronavirus relief package Congress passed in March, known as the CARES Act, gave the Pentagon the authority to reimburse contractors over coronavirus-related delays and other issues, but did not appropriate any money toward that end. Defense contractors and the Pentagon have been pushing for the funding, warning the department could have to tap into other accounts that could jeopardize readiness.

The bill also includes $705 million for defense health programs to boost manufacturing of therapeutic drugs and buy more medical personal protective equipment; $2.6 billion for operations and maintenance funding intended to be used to build temporary facilities to house U.S. troops deploying to or returning from overseas who need to isolate; and $5.3 billion for the Pentagon to use for the Defense Production Act.

 

CHINA AT CENTER OF US-AUSTRALIA MEETING: The U.S. and Australia are working together to confront challenges posed by COVID-19 and the Chinese Communist Party, Secretary of State Mike PompeoMichael (Mike) Richard PompeoOvernight Defense: Senate GOP coronavirus bill includes .4B for Pentagon | US, Australia focus on China in key meeting Republicans raise concerns TikTok could be used by Chinese government interfere in elections China at center of US-Australia meeting on shared challenges MORE said Tuesday after meeting with his Australian counterpart.

“Our two great democracies face immediate crises like the COVID-19 pandemic and longer term challenges like the Chinese Communist Party’s ambitions,” Pompeo said, “and we need to deal with each of these challenges simultaneously.”

Background: Trump administration officials have ratcheted up rhetoric against China in recent weeks alongside actions meant to punish Beijing for what they say is a campaign of covert and coercive behavior threatening U.S. national security. This comes on top of the administration’s criticism that China is responsible for the spread of COVID-19 and its condemnation of Beijing’s actions in Hong Kong.

The talks: “We started this morning by talking at length about the Chinese Communist Party’s malign activity in the Indo-Pacific region, and indeed all around the world,” Pompeo said, speaking alongside Defense Secretary Mark EsperMark EsperOvernight Defense: Senate GOP coronavirus bill includes .4B for Pentagon | US, Australia focus on China in key meeting China at center of US-Australia meeting on shared challenges Press: Trump declares war – on America! MORE, Australian Foreign Minister Marise Payne and Australian Defense Minister Linda Reynolds.

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Australia, while one of the U.S.’s closest allies and intelligence-sharing partners through the Five Eyes agreement, is seeking to balance confrontation with China alongside cooperation on areas of trade and the economy.

“As my prime minister put it recently, the relationship that we have with China is important, and we have no intention of injuring it,” Payne said. “But nor do we intend to do things that are contrary to our interests, and that is the premise from which we begin.”

The two delegations met over two days as part of the 30th annual U.S. and Australian Ministerial Consultations. The face-to-face meetings are notable for taking place amid the pandemic, where the U.S. has the highest case count in the world with over 4 million cases — though numbers are rising across the globe, including in Australia.

Up against China and Russia: Payne announced that the U.S. and Australia would partner on a working group “to monitor and respond to harmful disinformation.”

While not specifically naming China and Russia, both countries are seen as leading states in campaigns of disinformation and influence operations, called out by the European Union, the State Department and tech companies that have pulled down networks made up of tens of thousands of inauthentic users.

Pompeo further commended Australia on confronting Chinese telecommunications companies that have come under U.S. scrutiny as being a front for collecting private information for the Chinese Communist Party.

“We also addressed the CCP’s attempts to dominate the technology space,” Pompeo said. “Australia was ahead of us in awakening to the threat of untrusted vendors like Huawei and ZTE. We look forward to nations becoming clean countries together.”

On the defense side: Both sides also accused China of violating international norms in the South China Sea and pledged to uphold freedom of navigation and the rule of the law in the region, though officials were cagey with details as to how their countries would do so.

Esper sidestepped questions on whether the officials had discussed deploying additional U.S. troops or intermediate-range missiles on Australian soil, only telling reporters that they “had a very wide-ranging discussion about the capabilities that the United States possesses and the capabilities that Australia possesses and our desire to enhance them – whether they are hypersonic [missiles] or any other type of capability.”

He added that the discussions also touched on deterring “bad behavior in the Indo-Pacific … specifically with regard to China.”

Esper last year while visiting Australia said that he hoped to soon place ground-launched, intermediate-range missiles in Asia as such a weapon would be “important” to have in the Asia-Pacific region.

 

ON TAP FOR TOMORROW

A House Armed Services Committee subpanel will hold a hearing on “The Military’s #MeToo Moment: An Examination of Sexual Harassment and Perceived Retaliation in the Department of Defense and at Fort Hood,” at 10 a.m. 

 

ICYMI

— The Hill: US military acknowledges civilian death from Somalia strike
 
— The Hill: GOP coronavirus bill includes $1.75 billion for construction of new FBI building
 
— The Hill: Park Police chief testifies protesters were not cleared from Lafayette Square for Trump visit
 
— The Hill: Trump taps retired Army Col. Douglas Macgregor as next ambassador to Germany
 
— The Hill: Former DHS spokesman rips federal agents’ presence in Portland
 
— The Hill: Kim: North Korea’s nuclear weapons will prevent war
 
— The Hill: Opinion: Hong Kong is the first test for the bold new Trump-Pompeo China policy
 
— Military Times: In confirmation hearing, NORTHCOM nominee talks border mission and military force against civil unrest
 
— Stars and Stripes: With US troops gone from two bases in eastern Afghanistan, Taliban steps up attacks

Hong Kong leader Carrie Lam warned of the potential of a large COVID-19 outbreak in the city and encouraged residents to stay indoors as new restrictions take effect in the city.

“We are on the verge of a large-scale community outbreak, which may lead to a collapse of our hospital system and cost lives, especially of the elderly,” Lam said in a statement late Tuesday, according to Reuters. 

“In order to protect our loved ones, our healthcare staff and Hong Kong, I appeal to you to follow strictly the social distancing measures and stay at home as far as possible,” she added. 

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Lam’s comments come as the city moves to implement new coronavirus restrictions starting Wednesday, including a ban on gatherings of more than two people and a ban on indoor dining in restaurants. Hong Kong also implemented a mandate for face masks to be worn in public, including outdoors.

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The restrictions followed an increase in COVID-19 cases in the past three weeks, with 106 new cases confirmed Tuesday. Since January, Hong Kong has recorded 2,880 coronavirus infections and 23 deaths, according to Reuters.

The prohibition of indoor dining comes as some restaurants in the semi-autonomous city vacate their locations to move to more affordable areas and save on rent following the economic downturn caused by the pandemic, the South China Morning Post reported. 

Hong Kong had forbidden dining after 6 p.m., but the further limitations are expected to provoke more businesses to follow suit in moving. About 16,000 restaurants in the city are struggling financially after the city instituted its first restrictions in March, according to the South China Morning Post.

The Senate didn’t include a funding increase for Medicaid in its COVID-19 response bill, ignoring pleas from both Democratic and Republican governors and teeing up a contentious fight with the House over spending on the health care program for the poor. 

Governors facing massive budget shortfalls caused by the economic downturn have warned they will have to cut Medicaid and other programs if they don’t get more help from Congress, but those warnings did not sway Senate Republicans, who have resisted what they say would be “bailouts” of state and local governments.

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“At the end of the day, it’s got to be in there,” said Matt Salo, executive director of the National Association of Medicaid Directors (NAMD). 

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“We’re in this perfect storm of hurt. … The only way to get out of it — states are not able to get out of it because states can’t print money and states have to balance their budgets — the only way out of this is aggressive, concerted, federal, congressional action.” 

Medicaid — which is jointly paid for by states and the federal government — covers about 70 million people, but enrollment is expected to increase as people lose their jobs and become newly eligible for the program.

States are also facing increased costs from paying for COVID-19 treatment and services for beneficiaries. At the same time, tax revenue is falling, leaving massive budget holes that states are required to fill. 

During recessions, governors and state legislatures tend to cut costly programs like Medicaid, which consumes about 20 percent of state budgets. 

To avoid cuts, groups like NAMD and the National Governors Association (NGA) want Congress to temporarily increase the share of Medicaid costs paid by the federal government, to help cover increased enrollment costs and to free up state money for other areas like education. 

A COVID-19 response bill recently passed by the House would increase the share of Medicaid costs paid by the federal government, but it has not been considered by the Senate. 

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Now House and Senate negotiators will have to hammer out a compromise in a final package that Congress hopes to pass in the coming weeks. 

“There is increasing recognition that something needs to get done,” Salo said. 

“I feel confident that we will get there.” 

A spokesperson for House Speaker Nancy PelosiNancy PelosiPelosi bashes Barr after testimony: ‘He was like a blob’ and ‘henchman’ for Trump Republican senators revolt over coronavirus proposal Lawmakers, public bid farewell to John Lewis MORE (D-Calif.) said: “This is obviously a critical program, which is why it was in the HEROES Act.”

However, Senate Republicans and the Trump administration have a complicated history with the Medicaid program and have spent the last few years trying to reduce spending and decrease enrollment among childless adults.

One disagreement between Republicans and Democrats is over a requirement passed in a previous COVID-19 response bill that prohibits states receiving increased Medicaid funding from cutting benefits or restricting eligibility. Republicans think the requirement is too restrictive to states and want to change it in the next response bill. 

Congress passed a COVID-19 response bill in March that increases the federal government’s share of Medicaid costs, but governors say more help is needed. 

“The COVID-19 pandemic is drastically shrinking state and local revenue with most states experiencing a budget shortfall ranging between 5 and 20 percent,” the NGA and other groups wrote in a letter to congressional leaders earlier this month.

“Even states with a lower shortfall will be challenged to provide adequate healthcare services to their residents. This leaves state and local leaders with tough choices to balance their budgets while responding to a pandemic.”

Colorado has already cut funding to its Medicaid dental program and cut payments to some providers by 1 percent. Medicaid rates are already typically lower than rates paid by Medicare and private insurance. Other states, such as Florida and Tennessee, have put off planned improvements to the Medicaid program, like increases in provider rates and extra services for pregnant women. 

Federal law prohibits states receiving increased Medicaid funding from cutting required benefits, increasing premiums or restricting eligibility — restrictions Congress put in place to protect beneficiaries from losing coverage during the pandemic.

That means in order to find savings, states turn to cutting provider rates, which some experts say could be disastrous, especially for those that primarily see Medicaid patients.

Those providers are already struggling as they see fewer patients to maintain social distancing, and more people are staying at home and avoiding nonemergency care. 

“Medicaid provider payment cuts will compound financial damage from the pandemic, raising the risk that pediatricians, behavioral health providers and safety net clinics close their doors,” said Aviva Aron-Dine, vice president for health policy for the Center on Budget and Policy Priorities.

Bubba Ray Dudley (or Bully Ray) has managed to make a name for himself in wrestling for the past twenty years, most notably as part of the Dudley Boyz tag team with D-Von Dudley.He first rose to prominence in Extreme Championship Wrestling in the nineties before moving on to WWE back in 1999. The wrestler has been a multi-time tag team champion in just about every single promotion that he has worked for, and he even scored two runs as TNA World Heavyweight Champion during his final years in the promotion, and he was inducted into the TNA Hall of Fame in 2014 as well. Ray is celebrated as a trailblazer for tag team wrestling.
Unfortunately, Bully Ray’s in-ring career appears to be over now. During ROH’s Global Wars: Chicago iPPV, Ray appeared and put Frankie Kazarian through a table. He then took the microphone and announced to the crowd that he is ending his in-ring career due to a recent incident involving his health. Ray invited a child into the ring and handed him a piece of “the last table I’ll ever put somebody through.” Ray said that the child represented everyone that he has performed in front of over the past two decades before thanking the crowd and walking to the back. The crowd in attendance gave a standing ovation to the pro wrestling veteran.
During a match at Ring of Honor’s Death Before Dishonor XV pay-per-view, Jay Briscoe threw a table at Ray, hitting him harder than expected in the forehead. This caused Ray to receive a major concussion that immediately put his career in jeopardy. D-Von Dudley retired from the ring last year after joining WWE in a backstage producer role instead. If this truly is the end of Bubba Ray Dudley’s in-ring career, wrestling fans should celebrate some of the greatest (and most outlandish) aspects of one of professional wrestling’s most entertaining tag teams. Ray is expected to address his future in wrestling in more detail on this week’s Busted Open Radio show.