The Hill's Campaign Report: Obama gives Biden boost with endorsement

Welcome to The Hill’s Campaign Report, your daily rundown on all the latest news in the 2020 presidential, Senate and House races. Did someone forward this to you? Click here to subscribe.

We’re Julia Manchester, Max Greenwood and Jonathan Easley. Here’s what we’re watching today on the campaign trail. 

 

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LEADING THE DAY:  

OBAMA ENDORSES BIDEN: Former Vice President Joe BidenJoe BidenHillicon Valley: Biden calls on Facebook to change political speech rules | Dems demand hearings after Georgia election chaos | Microsoft stops selling facial recognition tech to police Trump finalizing executive order calling on police to use ‘force with compassion’ The Hill’s Campaign Report: Biden campaign goes on offensive against Facebook MORE finally scored the coveted endorsement of his former boss, President Barack ObamaBarack Hussein ObamaHarris grapples with defund the police movement amid veep talk Five ways America would take a hard left under Joe Biden Valerie Jarrett: ‘Democracy depends upon having law enforcement’ MORE, on Tuesday. The endorsement came in the form of a video address, in which Obama said from his Washington, D.C., residence that Biden represented America’s best hope of emerging from the coronavirus pandemic successfully. 

“If there’s one thing we’ve learned as a country from moments of great crisis, it’s that the spirit of looking out for one another can’t be restricted to our homes or our workplaces or our neighborhoods or houses of worship, it also has to be reflected in our national government,” Obama said.

While Obama waited until Biden was the presumptive Democratic nominee to endorse, the announcement’s timing is good for Biden. Remember, the former vice president is looking to unite a fractured Democratic Party, with a swath of progressive voters looking at him skeptically. Sen. Bernie SandersBernie SandersThe Hill’s 12:30 Report: Milley apologizes for church photo-op Harris grapples with defund the police movement amid veep talk Biden courts younger voters — who have been a weakness MORE (I-Vt.) sent a major signal to his progressive supporters on Monday in endorsing Biden.

Now Biden also has the endorsement of Obama, who is arguably the most popular Democrat nearly four years after he left office. These two endorsements signal to Democrats of all stripes that it’s time to come together ahead of November. 

But unification could still prove to be challenging for the party with Biden at the helm. Progressive Rep. Alexandria Ocasio-CortezAlexandria Ocasio-CortezAttorney says 75-year-old man shoved by Buffalo police suffered brain injury How language is bringing down Donald Trump Highest-circulation Kentucky newspaper endorses Charles Booker in Senate race MORE (D-N.Y.) said Biden needs a “real” health care plan to boost enthusiasm for his candidacy, adding that “at a bare minimum” he needs to create a health care plan “that helps extend health care to young people.” 

Ocasio-Cortez’s fellow progressive, Rep. Ilhan OmarIlhan OmarHow language is bringing down Donald Trump Biden, Democrats seek to shut down calls to defund police McEnany, Ocasio-Cortez tangle over ‘Biden adviser’ label MORE (D-Minn.) said that she will support whoever the Democratic nominee is, but said she is looking for an indication from Biden that he understands what really matters for voters on the left. 

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While there are clear policy differences between Biden’s supporters and the party’s progressives, their biggest unifier is the desire to defeat Trump in November. This appeared to be a unifying factor in 2016 when the majority of Democrats who backed Sanders in the primary supported Hillary ClintonHillary Diane Rodham ClintonWhite House accuses Biden of pushing ‘conspiracy theories’ with Trump election claim Biden courts younger voters — who have been a weakness Trayvon Martin’s mother Sybrina Fulton qualifies to run for county commissioner in Florida MORE in the general election. History tells us that this likely won’t be a problem, but that does not mean there won’t be some bumps along the way. 

–Julia Manchester 

 

READ MORE:

Obama endorses Biden, by Jonathan Easley

Biden gains advantage over Clinton by having time to unify the party, by Amie Parnes

Biden gets major boost from Obama, by Jonathan Easley and Amie Parnes

Obama praises Sanders in endorsement of Biden, by J. Edward Moreno

Rep. Ilhan Omar (D-Minn.) looking for a ‘gesture’ from Biden before endorsing, by Rebecca Klar

 

FROM THE TRAIL:

Social distancing measures are forcing political campaigns into the online space ahead of the general election in November, which could result in new challenges for minority voters, particularly those with limited or no internet access. The Hill’s Rafael Bernal reports.

 

Biden slammed President TrumpDonald John TrumpSenate advances public lands bill in late-night vote Warren, Democrats urge Trump to back down from veto threat over changing Confederate-named bases Esper orders ‘After Action Review’ of National Guard’s role in protests MORE on Tuesday after the president said that he had the power to unilaterally reopen state economies. “I am not running for office to be King of America. I respect the Constitution. I’ve read the Constitution. I’ve sworn an oath to it many times,” Biden said in a tweet. “I respect the great job so many of this country’s governors — Democratic and Republican — are doing under these horrific circumstances.” The comments from Trump and Biden underline a nationwide debate over when to reopen portions of the U.S. economy amid the coronavirus pandemic. The Hill’s Marty Johnson has more.

 

PERSPECTIVES:

Maria Cardona: In the heat of crisis, Trump melts away

Robert Hormats: Would a National Popular Vote remove some politics from presidential decision making?

John McCormack: Why were only five polling locations open in Milwaukee?

Sharlee Glenn: A call to Elizabeth WarrenElizabeth WarrenWarren, Democrats urge Trump to back down from veto threat over changing Confederate-named bases OVERNIGHT DEFENSE: Joint Chiefs chairman says he regrets participating in Trump photo-op | GOP senators back Joint Chiefs chairman who voiced regret over Trump photo-op | Senate panel approves 0B defense policy bill Trump on collision course with Congress over bases with Confederate names MORE to resume her candidacy for the 2020 election

 

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MONEY WATCH:

The nation’s second-largest teachers union has launched a series of television and online ad spots in which nurses and other health care staff condemn Trump’s suggestion they have stolen personal protective equipment during the coronavirus pandemic. Zack Budryk reports.

 

POLL WATCH:

OH Predictive Insights — ARIZONA

Biden: 52 percent

Trump: 43 percent

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VCU L. Douglas Wilder School of Government and Public Affairs — VIRGINIA

Biden: 51 percent

Trump: 41 percent

 

GreatBlue -Sacred Heart University Pioneer Poll- Connecticut

Biden: 47 percent

Trump: 34 percent

 

MARK YOUR CALENDARS:

(Keep in mind these dates could change because of the outbreak.)

April 17:

Wyoming

 

April 28:

Ohio

 

May 2:

Kansas Democratic primary

Guam Democratic caucuses

 

May 12:

Nebraska primaries

 

May 19:

Oregon primaries

 

May 22:

Hawaii Democratic primary

 

June 2:

Connecticut primaries

Delaware primaries

District of Columbia primaries

Indiana primaries

Maryland primaries

Montana primaries

New Mexico primaries

Pennsylvania primaries

Rhode Island primaries

South Dakota primaries

 

June 6:

US Virgin Islands primaries

 

June 9:

Georgia primaries

West Virginia primaries

 

June 20:

Louisiana primaries

 

June 23:

Kentucky primaries

New York primaries

 

July 7:

New Jersey primaries

 

August 17-20:

Democratic National Convention

 

August 24-27:

Republican National Convention

 

ONE HOPEFUL THING

A group of Canadian high school students are looking to bring some happiness to older North Americans as the coronavirus pandemic continues to keep seniors isolated from their friends and family. 

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The teens from Ever Active Schools in Calgary, Canada, last week launched the Joy4All project, which plays prerecorded feel-good messages on a hotline. 

The messages include jokes, stories, educational tidbits and meditations. 

“We’re just trying to fill in some of the gaps and bring them a little bit of joy and levity during these difficult times,” Ever Active Schools Teacher Jamie Anderson told CBC News.

But the hotline isn’t just for senior citizens, the group’s website encourages people of all ages to call the hotline at 1-877-JOY-4ALL

For more information on the Joy4All project, click here.

We’ll see you tomorrow with all of the latest campaign news and updates!

Kobach lashes out at state GOP over effort to narrow Senate field: Grassroots 'should be outraged'

Kansas GOP Senate candidate Kris Kobach lashed out at the state Republican Party on Friday after it called on two of his opponents in the race to drop out to narrow the field, amid fears from national Republicans about Kobach becoming the party’s nominee.

“Grassroots Republicans should be outraged. Our next Senator will be chosen by the people of Kansas — not the party elites. The Chairman’s attempted intervention into the GOP primary is inappropriate,” Kobach, the former Kansas secretary of State, tweeted.

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The remarks follow a report from The Kansas City Star saying that Kansas GOP Chairman Mike Kuckelman wrote to state Senate President Susan Wagle and former Johnson County Commissioner Dave Lindstrom urging them to suspend their campaigns.

Kuckelman cited low fundraising and polling numbers in his letter and said their continued Senate bids would endanger Republicans’ ability to hold the seat being vacated by Sen. Pat RobertsCharles (Pat) Patrick RobertsTrump tweets spark fresh headache for Republicans Trump’s tweet on protester sparks GOP backlash  GOP lawmakers stick to Trump amid new criticism MORE (R), the newspaper reported.

“I ask that you put the good of the Party — as well as the good of our state and country — ahead of all personal interests. If that is indeed your first priority, it is clear that the best course is to end your campaign. It is time to allow our Party to coalesce behind a candidate who will not only win, but will help Republicans down the ballot this November,” Kuckelman wrote.

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If those two candidates dropped out it would set up a head-to-head matchup between Kobach and Rep. Roger MarshallRoger W. MarshallDeadline for Kansas Senate race passes without Pompeo filing The 10 Senate seats most likely to flip Family Research Council endorses Roger Marshall in Kansas Senate primary MORE (R) in Kansas’s Aug. 4 primary.

Republicans fear a crowded GOP primary could split up the establishment vote and allow Kobach to potentially pull off an insurgent victory.

Kobach successfully won the party’s nomination in the 2018 gubernatorial race after a crowded contest, only to lose the general election to Democrat Laura Kelly in the deep red state.

The former Kansas secretary of State is a close ally of President TrumpDonald John TrumpSenate advances public lands bill in late-night vote Warren, Democrats urge Trump to back down from veto threat over changing Confederate-named bases Esper orders ‘After Action Review’ of National Guard’s role in protests MORE’s and has advocated various far-right positions, particularly on immigration.

“The GOP has held this seat since the 1930s and its nominee, standing alongside President Trump, will win again in 2020. I trust KS Republican voters to choose the right nominee who will stand with the President and bring our shared conservatives values to the U.S. Senate,” said Kobach. 

The ultimate Republican nominee will run against state Sen. Barbara Bollier (D), who is expected to coast to her party’s nomination and spend the coming months gearing up for the general election. 

The Cook Political Report, a nonpartisan election handicapper, rates the Kansas Senate race as “lean Republican.”

Biden launches letter exchange series, 'Sincerely, Joe Biden'

Former Vice President Joe BidenJoe BidenHillicon Valley: Biden calls on Facebook to change political speech rules | Dems demand hearings after Georgia election chaos | Microsoft stops selling facial recognition tech to police Trump finalizing executive order calling on police to use ‘force with compassion’ The Hill’s Campaign Report: Biden campaign goes on offensive against Facebook MORE’s presidential campaign launched a new digital series featuring the presumptive Democratic nominee’s response to letters received from supporters. 

The series, called “Sincerely, Joe Biden,” will also include supporters’ letters to the former vice president. 

“I received your message and appreciate you sharing your story during this anxious time in our history,” Biden wrote to one supporter in a letter released first to CNN. “Courageous, hardworking Americans motivate me every day to work to ensure that families and workers are protected as we see our way through the worst public health crisis our country has faced in generations.”

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The letter series appears to be an effort to show Biden’s compassionate and empathetic side, which he is often lauded for by supporters. 

Prior to the pandemic, Biden had a number of notable moments on the campaign trail where he connected with voters on a personal level. 

The series is the latest digital effort rolled out amid the coronavirus pandemic, which has forced the campaign’s operations to go completely digital. 

The Biden campaign has rolled out a newsletter and podcast in an effort to connect with voters. The former vice president also frequently appears from his makeshift television studio in his Delaware home for virtual town halls and interviews.

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Obama endorses Democrat in California special House election

Former President Obama endorsed California State Assemblywoman Christy Smith (D) Tuesday in a special election to fill former Rep. Katie HillKatherine (Katie) Lauren HillThe Hill’s Morning Report – Presented by The American Investment Council – Trump takes his ‘ready to reopen’ mantra on the road The Hill’s Campaign Report: Democrat concedes in California House race Republican flips House seat in California special election MORE’s (D) seat. 

“Now, more than ever, we need pragmatic, experienced and effective leaders in Washington,” Obama said in a statement. “I’m proud to endorse Christy Smith in the May 12 special election for Congress because she has proven herself as a leader in her community. Let’s help Christy protect this seat.”

Smith is facing Republican Mike Garcia, a former Navy fighter pilot, in the special election. 

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The election will be conducted entirely through vote-by-mail amid the coronavirus pandemic. 

Smith was endorsed last week by former Democratic presidential nominee and Secretary of State Hillary ClintonHillary Diane Rodham ClintonWhite House accuses Biden of pushing ‘conspiracy theories’ with Trump election claim Biden courts younger voters — who have been a weakness Trayvon Martin’s mother Sybrina Fulton qualifies to run for county commissioner in Florida MORE. 

Hill, who flipped the seat in 2018 after defeating an incumbent Republican, resigned from Congress last year amid allegations that she engaged in a sexual relationship with staffers. Hill quickly endorsed Smith in the race to fill her seat. 

Hill’s newly formed PAC Her Time launched a video last week pushing voter turnout in the race.

The race is ranked a “toss up” by The Cook Political report. 

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Trump campaign launches ads questioning Biden's age, fitness

President TrumpDonald John TrumpSenate advances public lands bill in late-night vote Warren, Democrats urge Trump to back down from veto threat over changing Confederate-named bases Esper orders ‘After Action Review’ of National Guard’s role in protests MORE’s reelection campaign launched a series of Facebook ads Thursday questioning Joe BidenJoe BidenHillicon Valley: Biden calls on Facebook to change political speech rules | Dems demand hearings after Georgia election chaos | Microsoft stops selling facial recognition tech to police Trump finalizing executive order calling on police to use ‘force with compassion’ The Hill’s Campaign Report: Biden campaign goes on offensive against Facebook MORE’s age and fitness for office, expanding on a personal attack line that Republicans have only floated thus far.

The ads asked if the former vice president, 77, is “too old” to be elected president and saying, “geriatric mental health is no laughing matter.”

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While Republicans have grumbled about Biden’s age and highlighted verbal gaffes and technical difficulties during his events, the Trump campaign’s ads mark the first time it has used ads to explicitly target his overall fitness.

The Trump campaign did not immediately respond to a request for comment from The Hill regarding the ads.

Trump, who is known to lash out at his opponents in personal terms, has alleged that Biden lacks the mental fitness to lead the country.

“[H]e’s not going to be running it,” Trump told supporters at a March rally in North Carolina. “Other people are going to. They’re going to put him into a home, and other people are going to be running the country and they’re going to be super-left, radical crazies.” 

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The Trump and Biden campaigns have already begun blitzing each other with negative ads, with many of the attacks focusing on their responses to the coronavirus or stances toward China. 

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“Donald Trump doesn’t understand. We have an economic crisis because we have a public health crisis. And we have a public health crisis because he refused to act,” a narrator says in the nearly three-minute long clip released this week by the Biden campaign. “Donald Trump didn’t build a great economy. His failure to lead destroyed one.” 

The Biden campaign did not immediately respond to a request for comment from The Hill regarding the latest ads. 

The attacks on Biden’s fitness for office come as polls show Trump trailing the former vice president in a number of key battleground states, raising alarms from Republicans over the president’s chances in November.

-Updated May 15 at 9:40 a.m.

Biden slams Trump in new ad: 'The death toll is still rising. The President is playing golf'

Former Vice President Joe BidenJoe BidenHillicon Valley: Biden calls on Facebook to change political speech rules | Dems demand hearings after Georgia election chaos | Microsoft stops selling facial recognition tech to police Trump finalizing executive order calling on police to use ‘force with compassion’ The Hill’s Campaign Report: Biden campaign goes on offensive against Facebook MORE released a political attack ad against President TrumpDonald John TrumpSenate advances public lands bill in late-night vote Warren, Democrats urge Trump to back down from veto threat over changing Confederate-named bases Esper orders ‘After Action Review’ of National Guard’s role in protests MORE on Saturday, slamming his decision to play golf over Memorial Day weekend while the death toll due to the coronavirus continues to rise in the United States.

The 30-second video shows Trump playing golf at his Virginia club on Saturday and is interspersed with footage of people who appear to be front-line health care workers walking into hospital rooms, administering COVID-19 tests at drive-thrus and interacting with patients on stretchers.

The video also shows a red bar graph increasing in size as the number of coronavirus-related deaths hovers close to 100,000. 

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“The death toll is still rising,” the ad reads. “The President is playing golf.”

As of Saturday afternoon, the U.S. has recorded 1.6 million confirmed cases of the virus and 96,983 deaths, according to data compiled by Johns Hopkins University. 

The ad released Saturday night is just the latest push from Biden, the presumptive Democratic presidential nominee, framing Trump’s response to the crisis as inadequate. 

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Earlier this month, the Biden campaign released an ad accusing the president of mishandling the public health crisis and the economic fallout it caused by failing to implement mitigation measures early on in the outbreak. 

“Donald Trump didn’t build a great economy. His failure to lead destroyed one,” that ad said.

The Trump campaign has also started to ramp up attacks against the former vice president, highlighting what the president’s camp says is Biden’s “friendly” stance on China.

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At one point, the president said China is “desperate” for Biden to win the election. 

Sanders, Ocasio-Cortez endorse progressive Democrat running against McGrath in Kentucky Senate primary

Sen. Bernie SandersBernie SandersThe Hill’s 12:30 Report: Milley apologizes for church photo-op Harris grapples with defund the police movement amid veep talk Biden courts younger voters — who have been a weakness MORE (I-Vt.) and Rep. Alexandria Ocasio-CortezAlexandria Ocasio-CortezAttorney says 75-year-old man shoved by Buffalo police suffered brain injury How language is bringing down Donald Trump Highest-circulation Kentucky newspaper endorses Charles Booker in Senate race MORE (D-N.Y.), two leading progressives in the Democratic Party, announced Tuesday that they are endorsing Kentucky state Rep. Charles Booker (D) in the Kentucky Senate primary race. 

Booker is one of several Democrats running in the Kentucky primary — including Amy McGrath, a candidate backed by the Democratic Senatorial Campaign Committee (DSCC) — to challenge Senate Majority Leader Mitch McConnellAddison (Mitch) Mitchell McConnellSenate advances public lands bill in late-night vote GOP senator to try to reverse requirement that Pentagon remove Confederate names from bases No, ‘blue states’ do not bail out ‘red states’ MORE (R-Ky.). 

“As Louisville has become an epicenter of national tragedy and protesters due to the police murders of Breonna Taylor and David McAtee, Charles has shown leadership by showing up on the frontlines,” Sanders said in an email to supporters, noting two black Louisville residents killed by police. 

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Sanders also noted Booker’s support for “progressive policies such as criminal justice reform, Medicare for All, and getting big money out of politics.” 

Ocasio-Cortez said Booker is “building the kind of principled, inclusive and winning coalition in Kentucky that can inspire positive change.” 

“The US Senate will be a better place with him in it. I’m proud to endorse him,” she tweeted. 

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Booker’s campaign highlighted the endorsements as evidence that momentum is continuing to build for the progressive candidate’s campaign. 

“Kentucky is ready to lead, and the country is standing behind us. These endorsements are further proof that our vision to end poverty, lead on structural change, and uplift all people is the right message at the right time,” Booker said in a statement. “We will win this primary, beat Mitch McConnell, and transform our future.”

In the primary, Booker is facing McGrath, a retired Marine Corps fighter pilot who has raised millions of dollars for her campaign. The DSCC endorsed McGrath in February. 

McGrath is running on a more moderate agenda than Booker. 

Booker accused McGrath of identifying herself as a “pro-Trump Democrat” and said she “doesn’t have a clue about the challenges we face,” in an interview Monday night with MSNBC. 

The McGrath campaign pushed back on Booker’s assertion that she described herself as a “pro-Trump Democrat.” 

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“Lt. Col. Amy McGrath has said she would work with any president, whether that person has a red jersey or a blue jersey, to do what’s right for Kentucky and do what’s right for the country,” a campaign spokesperson said in a statement. “Likewise, she will stand up to any president of either political party if they act in a way that would harm Kentucky or the country.”

Michigan agrees to $600M settlement with Flint residents

The state of Michigan has reached a preliminary $600 million agreement with Flint residents after lead levels in their drinking water spiked following a switch in water sources.

Nearly 80 percent of the funds will be given to children in Flint, the majority being routed to those under 6 at first exposure — the highest risk group for the damaging effects of lead poisoning. Another nearly 20 percent will go to the city’s adult residents.

The agreement, one of many legal battles fought by residents since lead-tainted water began flowing through their pipes in 2014, follows 18 months of negotiations.

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“The residents of Flint were victims of horrendous decisions by the state, its employees, and other defendants that have resulted in tragic and devastating consequences,” Ted Leopold, one of the court-appointed interim co-lead counsels for city residents, said in a statement.

“This public health disaster was the product of a complete disregard for the health and well-being of ordinary citizens. While we can never undo the damage that occurred to the citizens and community of Flint, we are pleased that today we were able to secure a measure of justice for the proposed class and the Flint community, and will continue to seek justice against the remaining defendants.”

Michigan Gov. Gretchen WhitmerGretchen WhitmerOvernight Health Care: Fauci says he does not see US mandating COVID-19 vaccine | WHO warns against ‘nationalism’ in coronavirus fight The Hill’s 12:30 Report: Sights and sounds from night 1 of Dem’s virtual convention The Memo: Michelle Obama shines, scorching Trump MORE (D) acknowledged that the settlement “may not completely provide all that Flint needs.”

“Many will still feel justifiable frustration with a system and structure that at times is not adequate to fully address what has happened to people in Flint over the last six years. We hear and respect those voices and understand that healing Flint will take a long time, but our ongoing efforts and today’s settlement announcement are important steps in helping all of us move forward,” she said in a statement.

Flint residents began complaining about water quality issues shortly after the city switched its water source in April 2014, but city and state officials denied any problems until studies from Virginia Tech University researchers and Hurley Medical Center in Flint showed high lead levels in both water and children’s blood. Lead exposure has been tied to brain damage.

Criminal and civil cases have accused Michigan and Flint officials of being responsible for the crisis, but broader suits against other officials and agencies have been slowly proceeding.

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The new settlement, which still must be approved by the court, is open to any Flint resident who consumed the tainted water for at least 21 days of the month any time after April of 2014. There were roughly 100,000 city residents during the time of exposure, including about 30,000 minors.

“Because the amount to be paid to each claimant will in part depend upon how many filed claims are verified, the precise amount to be paid to each claimant will not be known until the claims process is completed,” a summary of the settlement said, noting that those who can show they had elevated blood lead levels may receive larger payments. 

Residents who accept compensation will waive their right to sue the state, its agencies, and current and former employees, but residents may also opt out if they prefer to pursue their own litigation.

The settlement includes special set asides, including $12 million for the city’s schools to provide extra assistance for students struggling after lead exposure.

It also sets aside $35 million in a trust for children, whose parents don’t apply for the settlement now, to do so on their own behalf once they reach adulthood.

“We’re very proud of that feature and it’s going to be very beneficial to many of the children,” Michael Pitt, another one of the plaintiff’s lawyers, said on a call with reporters.

Michigan Attorney General Dana Nessel (D) said that she hopes the settlement can be a “step forward” in the healing process.

“Flint residents have endured more than most, and to draw out the legal back-and-forth even longer would have achieved nothing but continued hardship. This settlement focuses on the children and the future of Flint, and the State will do all it can to make this a step forward in the healing process for one of Michigan’s most resilient cities,” Nessel said in a statement.

“Ultimately, by reaching this agreement, I hope we can begin the process of closing one of the most difficult chapters in our state’s history.”

But many of the other cases against the state and federal government remain.

The Supreme Court in January ruled cases against state and local officials could proceed, and case filed by residents against the Environmental Protection Agency (EPA) is also active.

Emails released in the case show an EPA employee had urged state and federal officials to take action.

Plaintiffs have argued that the EPA failed to use its authority under the Clean Water Act to address the health risks from the water or the inaction from other officials. Federal attorneys argue the EPA should be immune from the suit because Michigan law would not hold private individuals liable in similar circumstances.

“Stay with us because the battle is not over,” Trachelle Young, another lawyer for city residents, told reporters on Thursday.

–This report was updated at 12:20 p.m.

 

On The Money: McConnell not certain about fifth coronavirus package | States expected to roll out unemployment boost in late August | Navarro blasts 'stupid' Kodak execs

Happy Monday and welcome back to On The Money. I’m Sylvan Lane, and here’s your nightly guide to everything affecting your bills, bank account and bottom line.

See something I missed? Let me know at slane@thehill.com or tweet me @SylvanLane. And if you like your newsletter, you can subscribe to it here: http://bit.ly/1NxxW2N.

Write us with tips, suggestions and news: slane@thehill.com, njagoda@thehill.com and nelis@thehill.com. Follow us on Twitter: @SylvanLane, @NJagoda and @NivElis.

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THE BIG DEAL — McConnell not certain there will be a fifth coronavirus package: Senate Majority Leader Mitch McConnellAddison (Mitch) Mitchell McConnellCortez Masto touts mail-in voting in convention speech Senate GOP to include Postal Service funds in smaller coronavirus relief bill On The Money: McConnell not certain about fifth coronavirus package | States expected to roll out unemployment boost in late August | Navarro blasts ‘stupid’ Kodak execs MORE (R-Ky.) on Monday cast doubt on whether negotiators would be able to break the impasse on a fifth coronavirus package, though he said that he thinks there needs to be another bill.

“We do need another bill and I’m hoping that this impasse will end soon. …[But] I can’t tell you yet here today whether there’s going to be additional relief for health care providers,” McConnell said at an event in Kentucky.

“I’m hoping what we’re talking about today is not that last tranche that we will make, but as of the moment, today, I can’t tell you with certainty we’re going to reach an agreement,” he said, adding that the talks had been “further complicated” by the November elections.

McConnell’s remarks come after negotiations between the Trump administration and congressional Democrats derailed earlier this month amid deep policy and political differences.

The Hill’s Jordain Carney has more here.

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VIRTUAL EVENT ANNOUNCEMENT: ON THE AGENDA: AFFORDABLE HOUSING 

A place to call home has always been a basic need and yet the lack of safe, affordable housing remains an issue today. On the sidelines of the 2020 Conventions, The Hill will host discussions on what can be done to ensure all Americans have access to a safe and affordable home. Tuesday, August 18 at 1PM EDT former HUD Sec. Julián Castro and Rep. Suzan DelBeneSuzan Kay DelBeneOn The Money: McConnell not certain about fifth coronavirus package | States expected to roll out unemployment boost in late August | Navarro blasts ‘stupid’ Kodak execs On The Money: Economists flabbergasted after Congress leaves with no deal | Markets rise as the economy struggles | Retail sales slow in July On The Money: Senate leaves until September without coronavirus relief agreement | Weekly jobless claims fall below 1 million for first time since March | Trump says no Post Office funding means Democrats ‘can’t have universal mail-in voting’ MORE join us for the DNC; stay tuned for details on the RNC edition on Tuesday, August 25 at 1PM EDT.

LEADING THE DAY

States expected to roll out weekly $300 unemployment boost in late August: President TrumpDonald John TrumpThe Memo — Michelle Obama shines, scorching Trump Trump lashes out at Cuomo after his Democratic convention speech Biden seeks to win over progressives and Republicans on night one MORE‘s promised top-up in unemployment benefits is expected to begin rolling out the last weekend in August, a full month after a larger benefit expired, according to the Federal Emergency Management Agency (FEMA), which will administer the funds.

  • Though Trump advertised the new top-up at $400, only $300 was set to come from FEMA, with the rest coming from states’ existing relief funds. Many states voiced opposition to the plan, citing the immense damage the pandemic has caused to their finances.
  • Treasury Secretary Steven MnuchinSteven Terner MnuchinSenate GOP to include Postal Service funds in smaller coronavirus relief bill On The Money: McConnell not certain about fifth coronavirus package | States expected to roll out unemployment boost in late August | Navarro blasts ‘stupid’ Kodak execs States expected to roll out weekly 0 unemployment boost in late August MORE initially said the additional funds would be available immediately, but then revised his estimate to say it would take two weeks.
  • The FEMA document cited Labor Department figures estimating that on average, the benefits would start rolling out three weeks after the Aug. 8 order was signed, setting the average start date at Aug. 29.

The Hill’s Niv Elis tells us why here.

Navarro blasts ‘stupid’ Kodak execs amid insider trading probe into loan: White House trade adviser Peter Navarro ripped Eastman Kodak amid an investigation into whether executives illegally disclosed information about a federal loan to produce pharmaceutical products. 

“What happened at Kodak was probably the dumbest decisions made by executives in corporate history,” Navarro said in a Monday interview with CNBC. “You can’t fix stupid. You can’t even anticipate that degree of stupidity.”

  • The Securities and Exchange Commission (SEC) is investigating whether Kodak executives violated insider trading laws when disclosing a $765 million loan from the federal government. 
  • While the loan was announced on July 28, the company’s stock skyrocketed in price the prior day as the volume of Kodak shares traded increased drastically.
  • The U.S. International Development Finance Corporation announced on Aug. 7 that it was pausing the loan to Kodak after news of the SEC probe and the announcement of an internal company investigation came out earlier that day.

“We loved that project,” said Navarro, who has called for boosting U.S. production of pharmaceuticals to reduce the country’s reliance on imports, particularly from China.

“We don’t know why that happened or what they did. Let the investigation happen,” he continued. “We’re not looking in the rearview mirror.”

I have more here.

GOOD TO KNOW

  • Caroline A. Crenshaw was sworn in Monday as the Securities and Exchange Commission’s (SEC) second Democratic member, giving the five-person panel a full roster for the first time since 2018.
  • The S&P 500 came close to hitting a record high Monday but fell 4 points shy of its February peak.
  • The Commerce Department’s Bureau of Industry and Security on Monday announced further steps to push back against Chinese telecommunications company Huawei and blacklisted 38 Huawei affiliate groups.
  • The business models for Uber, Lyft and dozens of other gig worker companies that have sprouted up over the last decade are up in the air after a California judge ruled that rideshare drivers must be classified as employees rather than contractors.
  • Postmaster General Louis DeJoyLouis DeJoyColorado secretary of state considering legal action against Trump, postmaster general Postmaster general agrees to testify before House panel McConnell: Postal Service will ‘be just fine’ MORE has agreed to testify before the House Oversight and Reform Committee about recently implemented cost-cutting measures at the U.S. Postal Service that have sparked fears that some ballots might not be delivered in time for Election Day.

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