Stocks set new records as strong earnings, low inflation fuel rally

The stock market stretched its record-breaking rally Wednesday as a slew of companies reported better than expected fourth quarter earnings.

The Dow Jones Industrial Average opened with a gain of 100 points, putting the index on track to close at a record high for the third consecutive day. The Nasdaq composite and S&P 500 index opened with gains of roughly 0.5 percent each, also setting new record highs.

All three major indexes have risen steadily since the beginning of last week, fueled by progress toward passing another $1 trillion-plus coronavirus relief bill, progress on COVID-19 vaccine distribution, and strong corporate earnings.

ADVERTISEMENT

Wall Street is betting on a swift second-half rebound for the U.S. economy and the likely passage of President BidenJoe BidenPostal Service posts profits after surge in holiday deliveries Overnight Defense: Pentagon pushes to root out extremism in ranks | Top admiral condemns extremism after noose, hate speech discovered GOP senators send clear signal: Trump’s getting acquitted MORE’s $1.9 trillion pandemic response and economic relief bill.

Shares of Coca-Cola, Twitter and Under Armour all rose sharply Wednesday after each company beat their expected fourth quarter earnings. Data released Wednesday from the Bureau of Labor Statistics showing a modest 0.3 percent increase in consumer prices last quarter also helped tame investors’ fears of stimulus-induced inflation.

 

TikTok sale shelved as Biden admin reviews security risks: report

The Biden administration has reportedly shelved the plans to force Chinese-owned ByteDance to sell the popular video-sharing app TikTok as it weighs potential security risks.

Former President TrumpDonald TrumpSchoen says Trump team will be ‘very well prepared’ after criticism Iowa Republicans seek to cut funding for schools with 1619 Project in curriculum Capitol rioter seen smoking in Rotunda arrested MORE’s effort to force the sale of the app was incomplete before he left office, and President BidenJoe BidenPostal Service posts profits after surge in holiday deliveries Overnight Defense: Pentagon pushes to root out extremism in ranks | Top admiral condemns extremism after noose, hate speech discovered GOP senators send clear signal: Trump’s getting acquitted MORE is pushing back on pursuing a plan of his own as the administration reviews its predecessor’s efforts to address potential security risks from Chinese tech companies, The Wall Street Journal reported Wednesday.

National security officials and ByteDance representatives have continued discussions, people familiar with the plan told the Journal. 

ADVERTISEMENT

“We plan to develop a comprehensive approach to securing U.S. data that addresses the full range of threats we face,” National Security Council spokeswoman Emily Horne told the Journal. “This includes the risk posed by Chinese apps and other software that operate in the U.S. In the coming months, we expect to review specific cases in light of a comprehensive understanding of the risks we face.”

Spokespeople for the White House and TikTok were not immediately available to The Hill for comment. 

Trump had sought to overhaul how the popular app operates in the U.S., alleging the company posed a threat to national security. TikTok has denied the allegations. 

Trump tentatively approved a deal that would have created a U.S.-based headquarter with Oracle and Walmart as partial owners, but the former administration extended the deadline and never reached a deal before President Biden came into office. 

In December, a Treasury Department spokesperson under the Trump administration said the Committee on Foreign Investment in the United States (CFIUS) was still engaging with ByteDance to complete the divestment, but the department would not be extending the deadline. 

The Treasury Department has not responded to multiple requests for comment regarding plans to push forward with the unfinished Trump administration deal. 

ADVERTISEMENT

The Journal reported that any deal the Biden administration reaches would likely be different than the one Trump tentatively approved before he left office. 

TikTok has also continued to push back on the Trump administration’s push to force the sale of the app in court. TikTok asked a federal appeals court in Washington in November to vacate the order calling for the divestiture, and the case is still pending. 

Separate federal court rulings have blocked the government from shutting TikTok down. 

The government’s formal response to TikTok’s court challenge against Trump’s executive order is due later this month, the Journal noted. A spokesperson for the Justice Department was not immediately available for comment. 

Biden takes cautious tack on China as tensions simmer

Relations between the United States and China are at a low point in the post-Trump era, and nearly three weeks into his term President BidenJoe BidenPostal Service posts profits after surge in holiday deliveries Overnight Defense: Pentagon pushes to root out extremism in ranks | Top admiral condemns extremism after noose, hate speech discovered GOP senators send clear signal: Trump’s getting acquitted MORE has yet to talk to his counterpart in Beijing, President Xi Jinping.

Biden has vowed to take a different approach to China than former President TrumpDonald TrumpSchoen says Trump team will be ‘very well prepared’ after criticism Iowa Republicans seek to cut funding for schools with 1619 Project in curriculum Capitol rioter seen smoking in Rotunda arrested MORE, who campaigned against China’s trade policies and then blamed Beijing for the coronavirus that devastated the U.S. economy in Trump’s reelection year.

“I’m not going to do it the way Trump did,” Biden said about his approach to Beijing, in an interview with CBS on Sunday. “We’re going to focus on international rules of the road.”

ADVERTISEMENT

Biden is facing heavy pressure to take a tough line on Beijing, with Republicans already telegraphing it will be an issue in the 2022 midterms — and likely the 2024 presidential election.

But the president has also said he is prepared to cooperate with Beijing when it is in the interest of the U.S.

This includes efforts to defeat COVID-19, confront climate change, expand nuclear non-proliferation – in particular bringing Iran back to compliance with the 2015 nuclear agreement and reining in North Korea’s nuclear threat — and, most recently, restore democracy in Myanmar following the military coup.

Tensions between the two countries are high in the post-Trump era in part because of the former president’s rhetoric – who repeatedly called COVID-19 the “China virus,” referring to the fact that the first cases were identified in the Chinese city of Wuhan – but also because lawmakers in both parties are criticizing Beijing over a host of policies affecting the economy and national security.

The tensions most recently spilled over into the South China Sea after Beijing denounced joint exercises by two U.S. carrier groups, calling it an attempt by the U.S. to “flex its muscles” in the region that damages “peace and stability.”

The comments followed Beijing’s earlier frustration against the U.S. when an American warship sailed close to Chinese-controlled islands in the waters, where a number of regional countries have made claims.

ADVERTISEMENT

The U.S. 7th fleet said the move was a “freedom of navigation operation” but the Chinese military accused the U.S. of infringing on China’s sovereignty and security.

Yet Chinese officials have also repeatedly called for “no confrontation, no conflict, mutual respect and win-win cooperation” with the U.S.

Bonnie Glaser, director of the China Power Project at the Center for Strategic and International Studies, said Biden was critical in his foreign policy speech last week against Chinese policies – where he said American leadership must confront “ambitions of China to rival the United States” – but that the president and his team have showed no rush to engage with Beijing.

“They have other priorities, including coordinating with allies and partners,” she wrote in an email to The Hill. 

“Meanwhile, the Chinese are sending the message that they are willing to improve bilateral ties, but only if it is on Chinese terms. There has yet to be a serious conversation between the two countries about how to manage their differences or how to cooperate on issues where they may have common ground.”

Biden said in his interview Sunday with CBS that there was no reason “not to call” Xi, and that the two have “a lot to talk about.”

The president said he does not seek conflict between the two nations but warned that “there’s going to be extreme competition.”

Secretary of State Antony BlinkenAntony BlinkenBiden takes cautious tack on China as tensions simmer EU says Russia could face new sanctions over Navalny jailing Beijing and Washington lay down ‘red lines’ — who will blink first? MORE is so far the highest-level U.S. official to speak with the Chinese, in a call last week with senior Chinese Communist Party official and diplomat Yang Jiechi.

The conversation largely focused on adversarial aspects of the relationship, with the secretary raising the issue of human rights abuses in Tibet, Hong Kong and Xinjiang. On the latter issue, the secretary has sided with the Trump administration over its determination that China is carrying out genocide against the Muslim Uighurs and other ethnic groups.

Blinken also pushed for China to condemn the military coup in Myanmar.

Beijing has so far refrained from calling the military takeover a coup, though it joined a United Nations Security Council statement calling for the restoration of democratic rule in the country and release of detained, democratically elected government officials.

Both Blinken and national security adviser Jake SullivanJake SullivanBiden takes cautious tack on China as tensions simmer Overnight Defense: Biden announces end to US support for offensive operations in Yemen | Pentagon orders mask-wearing indoors and out | Military COVID deaths mounting Biden: US taking ‘urgent’ steps to improve cybersecurity MORE, who has not spoken with any Chinese officials, have held calls with allies in Europe and Asia about confronting threats from China.

ADVERTISEMENT

Sullivan had earlier said it is a priority to get on the same page with allies about dealing with Beijing, during an event with the U.S. Institute of Peace last month.

“I think China is right at the top of the list of things that we’ve got to work together on and where there is work to do to get fully aligned,” he said.

Sullivan also said the U.S. must be prepared to impose costs on Beijing over its human rights abuses, but did not elaborate on those measures.

Yet Republicans are laying the groundwork to more forcefully pressure Biden over getting tough with Beijing. They are particularly critical of China’s influence at the World Health Organization.

Biden rejoined the global body on his first day in office, reversing Trump’s withdrawal from the organization in July over criticisms it did not confront Beijing over the spread of COVID-19.

Sens. Rick Scott (R-Fla.) and Josh HawleyJoshua (Josh) David HawleyGOP senators send clear signal: Trump’s getting acquitted Video stirs emotions on Trump trial’s first day Biden takes cautious tack on China as tensions simmer MORE (R-Mo.) seized on these criticisms on Tuesday, introducing legislation aimed at withholding U.S. funds from the WHO. Their statement followed the release of a WHO investigation they criticized as not addressing Beijing’s role in the spread of the virus.

ADVERTISEMENT

“The mission of the WHO is to get public health information to the world so every country can make the best decisions to keep their citizens safe,” Scott said in a statement. “The WHO not only failed its mission, but it failed the world when it comes to the coronavirus. They served as a puppet for the Chinese Communist Party – parroting misinformation and helping Communist China cover up a global pandemic.”

The bill’s introduction coincided with the WHO’s release of preliminary findings of an investigation into the origins of COVID-19 in China, which found the disease “most likely” originated in animals before jumping to humans, though it did not evaluate the shortcomings of the global response.

Hawley, who is considered a potential 2024 presidential candidate, criticized the WHO as prioritizing “the Chinese Communist Party’s interests over building a healthier world.”

Sen. Tom CottonTom Bryant CottonVideo stirs emotions on Trump trial’s first day Biden takes cautious tack on China as tensions simmer Republican bill seeking 1619 Project ban in Arkansas schools rejected by GOP-led committee MORE (R-Ark.), also a potential presidential candidate, tweeted in response to the investigation that “[for] over a year now the Chinese Communist Party apologists at [the WHO] have tried to spin the origins of the coronavirus.”

Former U.S. Ambassador to the U.N. Nikki HaleyNikki HaleyBiden takes cautious tack on China as tensions simmer The Hill’s Morning Report – Presented by TikTok – Senate trial will have drama, but no surprise ending Biden administration announces plans to rejoin UN human rights council MORE, yet another possible Republican presidential contender, also criticized the WHO investigation, tweeting that it should have focused on “when China knew” about the coronavirus “and why they kept it from the rest of the world…”

Sen. Lindsey GrahamLindsey Olin GrahamSenate sets hearing for Garland’s attorney general nomination Cassidy calls Trump attorneys ‘disorganized’ after surprise vote to proceed with trial OVERNIGHT ENERGY: Senate advances nomination of Biden EPA pick Regan | Study: Fossil fuel air pollution linked to 1 in 5 deaths worldwide | Biden gets more time to decide on Dakota Access Pipeline MORE (R-S.C.), in an interview with CBS’s Meet the Press on Sunday, warned against Biden throwing out Trump’s foreign policies wholesale, including those related to China.

“I would slow down if I were President Biden and re-evaluate some of these Trump policies and keep them in place if they make sense,” he said.

Hong Kong plans to reopen restaurants, ease social distancing restrictions

Officials in Hong Kong announced Wednesday that they are planning to relax some social distancing guidelines as the territory’s rate of COVID-19 cases drops, with the aim of returning life back to normal after the Lunar New Year holiday.

Bloomberg reported that Food and Health Secretary Sophia Chan announced the reopening of theme parks, beauty salons, movie theaters and other businesses, which were closed in response to lockdown measures implemented by the government in early December. The reopening date is set for Feb. 18, assuming the rate of new cases does not spike before then.

“We are cautiously positive on the epidemic,” Chan said. “If Hong Kong residents continue to observe social-distancing rules, following this trend, we hope we can resume normal life after Lunar New Year.”

ADVERTISEMENT

Dining areas were already open and will be allowed to increase their table capacity from two to four guests once the changes go into effect.

December’s restrictions were the first real lockdown measures that Hong Kong officials have implemented, and the territory is experiencing a few dozen new cases per day. In January, the government tightened some restrictions, including cordoning off one area of the city until all of the restricted area’s 10,000 residents tested negative for COVID-19.

“The Government hopes this temporary inconvenience will completely cut the local transmission chains and ease residents’ worries and fear, so that they will regain confidence in resuming social and business activities in the area, and return to a normal life,” officials said when tighening the measures last month.

The Chinese-controlled territory was consumed by months of protests last year as pro-U.S. and pro-democracy protesters clashed with police over a new national security law allowing residents to be tried for crimes in mainland China.

Hillicon Valley: Senators express concerns over response to Russian hack | Huawei makes a legal move | Twitter sees jump in user growth

Welcome to Hillicon Valley, The Hill’s newsletter detailing all you need to know about the tech and cyber news from Capitol Hill to Silicon Valley. If you don’t already, be sure to sign up for our newsletter by clicking HERE.

Follow our cyber reporter, Maggie Miller (@magmill95), and tech team, Chris Mills Rodrigo (@chrisismills) and Rebecca Klar (@rebeccaklar_), for more coverage.

A mix of big tech companies are keeping unexpected company in the news today. Top senators on the Intelligence Committee are criticizing the “disorganized” federal response to the SolarWinds hack investigation. Meanwhile, Huawei is looking to a court to overturn the Federal Communications Commission’s decision to label it a national security threat even as the founder of the Chinese telecommunications giant said he is doubtful the Biden administration will lift the Trump-era sanctions. 

ADVERTISEMENT

LOOKING FOR A LEADER: Senate Intelligence Committee Chairman Mark WarnerMark Robert WarnerHillicon Valley: Senators express concerns over response to Russian hack | Huawei makes a legal move | Twitter sees jump in user growth Senators ask federal officials to designate leader in ‘disorganized’ SolarWinds response Hillicon Valley: Democratic senators unveil bill to reform Section 230 | Labor board denies Amazon request to delay local union vote | Robinhood lifts restrictions on GameStop, other stocks MORE (D-Va.) and Vice Chairman Marco RubioMarco Antonio RubioVideo stirs emotions on Trump trial’s first day Hillicon Valley: Senators express concerns over response to Russian hack | Huawei makes a legal move | Twitter sees jump in user growth Senators ask federal officials to designate leader in ‘disorganized’ SolarWinds response MORE (R-Fla.) on Tuesday urged federal agencies investigating the SolarWinds hacking incident to designate a leader amid a “disorganized” process. 

“We are writing to urge you to name and empower a clear leader in the United States’ response to the SolarWinds cyber breach that has affected numerous federal agencies, and thousands of other private sector entities,” Warner and Rubio wrote to Director of National Intelligence Avril HainesAvril HainesHillicon Valley: Senators express concerns over response to Russian hack | Huawei makes a legal move | Twitter sees jump in user growth Senators ask federal officials to designate leader in ‘disorganized’ SolarWinds response Grenell congratulates Buttigieg on becoming second openly gay Cabinet member MORE along with the leaders of the FBI, the National Security Agency, and the Cybersecurity and Infrastructure Security Agency.

“The federal government’s response so far has lacked the leadership and coordination warranted by a significant cyber event, and we have little confidence that we are on the shortest path to recovery,” the letter said.

Read more about their concerns here. 

HUAWEI TURNS TO THE COURTS: The Chinese telecommunications giant is asking a court to overturn the Federal Communications Commission’s decision to label it a national security threat, accusing the agency of overstepping its authority.

“The order on review potentially impacts the financial interests of the telecommunications industry as a whole,” reads the request filed with the 5th U.S. Circuit Court of Appeals on Monday.

Huawei has consistently pushed back on allegations that it poses a security threat, arguing that the decisions to punish it have been grounded in anti-Chinese sentiment rather than fact.

ADVERTISEMENT

The Biden administration has yet to make its stance on Huawei clear, not committing on whether the company will be removed from the Commerce Department’s entity list.

Read more here.

 

DOUBTS FROM WITHIN: Ren Zhengfei, the founder of Chinese tech giant Huawei, said Tuesday he doesn’t expect the Biden administration to lift sanctions former President TrumpDonald TrumpSchoen says Trump team will be ‘very well prepared’ after criticism Iowa Republicans seek to cut funding for schools with 1619 Project in curriculum Capitol rioter seen smoking in Rotunda arrested MORE imposed on the company.

“I won’t say it’s impossible, but it’s extremely unlikely. We basically aren’t considering it a possibility,” Ren told reporters at a news conference, according to The Associated Press.

Zhengfei said Huawei will not likely be removed from the Commerce Department’s sanctions list, a designation which ended the company’s ability to purchase processor chips and other smartphone parts manufactured in the U.S.

Republicans have been pushing to keep the company on the list, with GOP senators putting pressure on Biden’s Commerce secretary nominee, current Rhode Island Gov. Gina RaimondoGina RaimondoHillicon Valley: Senators express concerns over response to Russian hack | Huawei makes a legal move | Twitter sees jump in user growth Huawei wants appeals court to overturn FCC’s national security ban Huawei founder doubts Biden will lift sanctions MORE (D), over her comments on Huawei.

Read more here

GREAT EXPECTATIONS: Twitter credited the pandemic and recent election for a boost in usage during the fourth quarter.

The company on Tuesday reported that average monetizable daily active usage reached 192 million in the fourth quarter of 2020, up 27 percent from the same time period the year before. But the social media giant warned the rate of user growth will slow in the coming months after a boost attributed to the pandemic and recent election. 

Twitter told shareholders in its quarterly report it expects user growth to slow to about a 20 percent increase in the next quarter, potentially followed by quarterly growth rates in the “low double digits” later this year. 

The company also said it expects total costs and expenses to grow to about 25 percent or more in 2021. 

Overall, however, Twitter reported a “strong finish” to last year with a revenue of $1.29 billion, up 28 percent year over year. 

Read more here

ADVERTISEMENT

GOOGLE STEPS UP: Google on Tuesday announced that it was rolling out more services to boost cybersecurity for both federal and state campaigns after the tech giant assisted around 140 federal campaigns with security during the 2020 election cycle. 

The company noted that the effort will involve supporting nonpartisan cybersecurity training sessions to campaign officials in all 50 states, along with deploying a digital “help desk” to answer cybersecurity questions campaigns may have. 

Read more about Google’s efforts here.

  

Lighter click: “I’m here live, I’m not a cat”

An op-ed to chew on: Robinhood or Sheriff of Nottingham? Conflicts of interest in the GameStop affair

NOTABLE LINKS FROM AROUND THE WEB: 

ADVERTISEMENT

N.Y.’s Vaccine Websites Weren’t Working. He Built a New One for $50. (The New York Times / Sharon Otterman) 

DLive is under congressional scrutiny over Capitol attack (The Verge / Makena Kelly)

Lacking a Lifeline: How a federal effort to help low-income Americans pay their phone bills failed amid the pandemic (Washington Post / Tony Romm)

Overnight Defense: Pentagon says extremist groups 'very aggressively recruit' troops | Capitol Guard deployment estimated at $483M | No US combat deaths in Afghanistan for a year | VA secretary confirmed

Happy Monday and welcome to Overnight Defense. I’m Rebecca Kheel, 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: As the Pentagon looks to root out extremists from its ranks, one of the issues it faces is extremist groups actively recruiting service members.

On Monday, the Defense Department’s top spokesman said such groups “very aggressively recruit” service members who are about to leave the ranks.

“Some of these groups are very organized, they very aggressively recruit soon-to-be veterans,” press secretary John Kirby told reporters at the Pentagon.

Why the interest? Veterans are a major recruitment pool for far-right militia movements due to their experience with weapons, organization and leadership skills.

Pentagon leaders have long struggled with rooting out such thinking in the military and preventing service members from entering extremist groups, though the issue came to the forefront after the Jan. 6 breach of the U.S. Capitol by supporters loyal to former President TrumpDonald TrumpDOJ to seek resignations of most Trump-appointed US attorneys: report Trump attorney withdraws request to not hold impeachment trial on Saturday Kinzinger in op-ed calls on GOP senators to convict Trump in impeachment trial MORE.

Possible solutions: Defense Secretary Lloyd AustinLloyd AustinSenate confirms Biden’s deputy Defense secretary Overnight Defense: Pentagon says extremist groups ‘very aggressively recruit’ troops | Capitol Guard deployment estimated at 3M | No US combat deaths in Afghanistan for a year | VA secretary confirmed Pentagon: Extremist groups recruit from military MORE and military leaders are discussing potential new training for troops before they enter the military, while they are actively in the service and before they leave.

“We certainly need to take a look at how we’re educating potential recruits when they’re still civilians and before they sign on the dotted line, clearly. There’s probably education that we need to do while people are in uniform and in service about the pull of some of these extremist groups,” Kirby said.

That training would inform them of “what’s waiting for them on the other side and who might be waiting for them on the other side,” he added.

Immediate action: Last week, the Pentagon also said Austin would order a military-wide “stand-down” to address extremism in the ranks, directing commanders to select a date within the next 60 days to conduct a one-day pause to discuss the issue with their personnel.

Late Friday, the Pentagon released Austin’s memo ordering the stand-down, in which he said “discussions should include the importance of our oath of office; a description of impermissible behaviors; and procedures for reporting suspected, or actual, extremist behaviors in accordance” with Defense Department rules.

“We will not tolerate actions that go against the fundamental principles of the oath we share, including actions associated with extremist or dissident ideologies,” Austin wrote. “Service members, DoD civilian employees, and all those who support our mission, deserve an environment free of discrimination, hate and harassment.”

The stand-down, Kirby said Monday, is “an opportunity for leadership to listen to the men and women they lead and to their concerns, to their experiences, and maybe even their possible solutions for how to tackle this problem.”

Kirby stressed that the stand-down is just one step in what Austin believes will be a “very deliberate process to try to tackle this problem.”

Austin “understands a one day stand down across the force isn’t going to solve everything, but it might bring to light concerns and experiences we’re otherwise not aware” of, Kirby said.

He added that information gleaned from the effort “will inform later procedures, policies or actions the secretary puts in place going forward.”

DC SECURITY COSTS: Last week, we reported the National Guard deployment at the Capitol through mid-March would cost nearly $500 million, per a defense official.

On Monday, the National Guard and the Pentagon gave a more detailed, on-the-record breakdown.

The cost of the deployment through March 15 is estimated at $483 million, Pentagon press secretary John Kirby said at a briefing.

The includes $284 million for personnel costs and $199 million for operations costs. 

In the Army National Guard, personnel costs are estimated at $256 million and operations at $165 million. For the Air National Guard, it’s $28 million for personnel and $34 million for operations.

The cost estimate covers the initial surge of 25,600 troops into D.C. after the Capitol attack and the drawdown to the 5,000 expected to stay through March 15, National Guard Bureau spokesperson Wayne Hall said in an email.

The operational costs include lodging, meals, transportation, sustainment and additional military air transportation costs to move required personnel and cargo, Hall said.

The cost estimate also includes a requirement to quarantine for 14 days upon returning home to comply with health guidance due to the COVID-19 pandemic, he said.

GOOD NEWS FROM AFGHANISTAN: It’s been a full year since a U.S. service member has died in combat in Afghanistan, the first time that’s happened since the war started nearly 20 years ago.

The last U.S. combat deaths in Afghanistan were Feb. 8, 2020, when Army Sgts. 1st Class Javier Gutierrez and Antonio Rodriguez were killed in Nangarhar province after a gunman wearing an Afghan army uniform opened fire.

Weeks later, on Feb. 29, 2020, the United States signed an agreement with the Taliban that sets terms for a full U.S. military withdrawal. Since then, the Taliban has largely refrained from conducting attacks on U.S. troops, though it has stepped up attacks on Afghan forces.

Stars and Stripes first noted that a year has gone by without a combat death in America’s longest war, which has seen 2,312 U.S. fatalities in total.

Though there have been no U.S. combat deaths in a year, there have been five noncombat deaths in Afghanistan over the last year, according to Defense Department statistics.

What next? The milestone comes as President BidenJoe BidenDemocrats say Trump impeachment defense ‘wholly without merit’ A US-Israel defense treaty has benefits — and perils White House: Biden won’t spend much time watching Trump impeachment trial MORE is deciding whether to withdraw from Afghanistan by May as called for in the U.S.-Taliban deal.

Over the weekend, we took a look at the decision Biden is facing, one that would be familiar to his immediate predecessors.

Experts are warning that a full U.S. military withdrawal could have dire consequences for Afghan and U.S. security. But Biden also faces domestic political pressures from those who say it is far past time to end America’s longest war.

During the presidential campaign, Biden promised to end so-called forever wars, but also said he would leave a small number of special forces in countries such as Afghanistan to conduct counterterrorism missions.

Since taking office, the Biden administration has said only that Afghanistan is one of the many policies it is reviewing in its early days. But the administration could be forced to make a decision sooner rather than later with a key NATO meeting in two weeks.

VA SECRETARY CONFIRMED: The Senate has confirmed Denis McDonough to lead the Department of Veterans Affairs (VA).

In a Monday vote, the Senate confirmed McDonough 87-7. The no votes came from GOP Sens. Josh Hawley (Mo.), Tom Cotton (Ark.), Joni Ernst (Iowa), Roger Marshall (Kansas), Rick Scott (Fla.), Bill Hagerty (Tenn.) and Ted Cruz (Texas).

Sen. Jerry Moran (R-Kan.), who has voiced his support for McDonough, was unable to vote due to flight delays caused by weather, preventing him from traveling to Washington, D.C.

McDonough, a former White House chief of staff under former President Obama, is only the second non-veteran to be voted into the post. The department oversees health care for some 9 million veterans, provides pensions and life insurance, helps with housing assistance and education and oversees national cemeteries. The VA is one of the federal government’s largest departments, with nearly 400,000 employees and a budget of $243 billion.

Prior to the vote, Senate Veterans’ Affairs Committee Chairman Jon Tester (D-Mont.) spoke in favor of McDonough, telling lawmakers that “veterans need someone like Denis fighting in their corner.”

“Now more than ever, veterans need a strong leader who will prioritize delivering timely and quality health care and benefits over making political points. I am confident that as VA secretary, Denis will be squarely focused on serving these needs,” Tester said.

ON TAP FOR TOMORROW

Vice Chief of Space Operations Gen. David Thompson will speak at 10 a.m. a virtual Space Foundation Space Symposium 365 event. https://bit.ly/3jDaqUQ

Northrop Grumman CEO Kathy Warden will speak about “Defense in the 21st Century” at 11 a.m. at an online event hosted by the Center for Strategic and International Studies. https://bit.ly/3a1s6q0

ICYMI

— The Hill: Shelby won’t run for reelection

— The Hill: Biden to make first Pentagon visit as president

— The Hill: Senate committees probe 22 agencies’ response to Jan. 6 attack

— The Hill: Roosevelt commanders aggravated COVID-19 outbreak: watchdog

— The Hill: White House says Biden ‘head nod’ didn’t signify shift on Iran

— The Hill: Vets defending Capitol were taunted by vets attacking it: report

— The Hill: White House indicates Trump hasn’t asked for intel briefing

— The Hill: Opinion: A US-Israel defense treaty has benefits — and perils

— Reuters: North Korea developed nuclear, missile programs in 2020: U.N. report

— Roll Call: Senators killed measure to combat violent extremism in military

— McClatchy: Biden to review deportations of veterans, military family that occurred under Trump

— Stars and Stripes: Afghan pilot reputed for saving US lives reapplies for asylum after being approved and later rejected

House Dems' COVID-19 aid bill includes $1,400 checks

House Democrats on Monday released key portions of their coronavirus relief package, including a section that would provide $1,400 checks to most Americans.

As with previous rounds of direct payments, single taxpayers with annual income up to $75,000 and married couples that make up to $150,000 would qualify for the full payment amounts.

However, the payment amounts above those thresholds would phase out at a faster rate than the payments from the first two rounds. Single filers with income above $100,000 and married couples with income above $200,000 would not be eligible for any payments.

ADVERTISEMENT

The release of bill text came after policymakers and economists debated what the income eligibility requirements should be for the payments.

Republicans and some centrist Democrats argued that the payments should be more targeted to lower-income households because those households are most in need of relief and most likely to spend the money quickly. But progressives argued that the income requirements shouldn’t be tightened so people who lost substantial amounts of income during the pandemic could quickly receive their payments.

Eligible households would be able to receive payments of up to $1,400 per person, including for adult dependents, who were left out of the previous rounds. The bill directs the Treasury Department to issue payments to people based on their 2019 or 2020 tax returns, and it allows the department to make payments to non-filers based on information available to it.

The direct payments are one of many portions of the package released by the House Ways and Means Committee. The package is based off a $1.9 trillion plan that President BidenJoe BidenDemocrats say Trump impeachment defense ‘wholly without merit’ A US-Israel defense treaty has benefits — and perils White House: Biden won’t spend much time watching Trump impeachment trial MORE proposed in January.

The Joint Committee on Taxation estimates that the new round of checks would cost $422 billion.

ADVERTISEMENT

The legislation would also extend federal unemployment programs, which are currently set to expire in March, through the end of August and increase the federal boost to unemployment benefits from $300 per week to $400 per week. Biden had proposed extending the programs through September.

Additionally, the package includes a one-year expansion of the child tax credit, making the credit fully refundable and increasing the credit amount to $3,600 for children under the age of 6 and $3,000 for other children. It directs Treasury to issue advance payments of the credit, ideally on a monthly basis, starting in July. The package also includes one-year expansions of the earned income tax credit and the child and dependent care tax credit.

The Ways and Means Committee is scheduled to consider its portions of the relief package starting Wednesday, which Chairman Richard NealRichard Edmund NealHouse Dems’ COVID-19 relief bill includes 2-year boost to ObamaCare subsidies ON THE MONEY: CBO estimate makes waves | Democrats to expand child tax credit | Wyden wields power House Dems’ COVID-19 aid bill includes ,400 checks MORE (D-Mass) called “a crucial step to confront this challenge and show the country that help is on the way.”

“From increasing direct assistance to those who need it most to expanding tax credits for low- and middle-income workers, we deliver substantial solutions in this package,” Neal said in a statement.

Updated at 7:05 p.m.

Rescue ship filled with migrants headed for Sicily

Humanitarian organization SOS Mediterranee said Ocean Viking, a rescue ship carrying 422 migrants, was headed into port in Sicily on Sunday after receiving permission from the Italian government.

The migrants were rescued by the vessel in four operations over a two-day period, according to search and rescue coordinator Luisa Albera. Albera said a pregnant woman and another person accompanying her had been evacuated to Malta by helicopter the day before, The Associated Press reported.

Eight of those aboard have tested positive for coronavirus and are in isolation, according to the organization.

ADVERTISEMENT

“But although strict COVID-19 mitigation protocols apply on board the Ocean Viking, this is a vessel of 69 meters (228 feet) in length,” Albera said, according to the AP. “This situation is a further reason for the remaining 422 survivors, who are in confined space on the aft deck, to be promptly disembarked in a place of safety,” she said.

Italian officials have begun transferring passengers on rescue ships to other ships to allow them to quarantine upon arrival during the pandemic, according to the AP. The latest wave of migrants arriving in Italy are predominantly assessed as economic migrants rather than escapees from war or political persecution, making them ineligible for asylum.

Meanwhile, numerous other migrants entering Italy by land from the Balkans have been turned back both in Italy and Slovenia, according to the AP. Pope FrancisPope FrancisRescue ship filled with migrants headed for Sicily Pope names two women to Vatican posts held by men Tens of thousands rally against coup in Myanmar MORE on Sunday called for humanitarian assistance in particular to unaccompanied minors, saying that while he had recently learned of the plight of those on the Balkan route, “there are so many … on all the routes.”

“Let’s work so that these fragile and defenseless creatures don’t lack dutiful care and preferential humanitarian channels,” the pontiff continued, according to the AP.

Pompeo rebukes Biden's new foreign policy

Former Secretary of State Mike PompeoMike PompeoPompeo rebukes Biden’s new foreign policy New Uighur abuse claims spark call for UN investigation US ‘disappointed’ by UN court decision on Iran case: State Department MORE admonished President Biden’s newly-announced diplomatic strategy during one of his first media appearances since the Trump administration ended.

Appearing on Fox News on Thursday evening, Pompeo gave his reactions to Biden’s announcement earlier that day in which he stated, “America is back, diplomacy is back at the center of our foreign policy.”

“I don’t think the American people can afford to go back to eight more years of Barack ObamaBarack Hussein ObamaPompeo rebukes Biden’s new foreign policy Biden’s climate plan can work if it’s sea to shining sea Why we will oppose spending bills that repeal or weaken the Hyde Amendment MORE‘s foreign policy. I hope they’ll move forward with a foreign policy, much more like our America First foreign policy,” Pompeo said to Fox News host and former GOP Rep. Trey GowdyTrey GowdyPompeo rebukes Biden’s new foreign policy The Hunter Biden problem won’t go away Sunday shows preview: Joe Biden wins the 2020 election MORE.

ADVERTISEMENT

Pompeo also shot back at Biden’s criticisms of former President TrumpDonald TrumpGOP senator warns his party must decide between ‘conservatism and madness’ Pompeo rebukes Biden’s new foreign policy Here are the 11 Republicans who voted to remove Greene from House committees MORE, who Biden said had failed to stand up to Russia.

“We worked hard to prevent Russia from interfering in our election. I’m proud of the work that we did. I’m proud of the work we did to push back against Russia,” Pompeo said.

Soon after Trump assumed office, former FBI Director Robert MuellerRobert (Bob) MuellerWhy a special counsel is guaranteed if Biden chooses Yates, Cuomo or Jones as AG Barr taps attorney investigating Russia probe origins as special counsel CNN’s Toobin warns McCabe is in ‘perilous condition’ with emboldened Trump MORE launched an investigation into the Trump campaign to determine if Russia had aided in getting Trump elected. However, in 2019 Mueller announced that he had discovered no proof that the Trump campaign had colluded with Russia.

Gowdy noted that Biden has committed to rebuilding ties with allies, and Pompeo acknowledged that his time as secretary may not have been well received by other nations.

“When I was the secretary of State, I shot straight. I told it like it was. That probably won’t frankly surprise you,” Pompeo told Gowdy. “And there were some cold receptions in Brussels and in some of the salons of Europe, there’s no doubt about that.”

Gowdy asked Pompeo if he would ever return to public service, to which he replied it’s “hard to know.”

“I served as a soldier a long time ago now. Then I had the incredible opportunity to serve alongside you as a member of Congress and then these two new jobs in the Trump administration,” he said. “We’ll have to see what life brings. For now I’m gonna take a little break. Work hard, think a little bit, write a little bit and then we’ll see what’s in front of us.”

Ballots go out in Amazon union battle in Alabama

Ballots are being sent out Monday in one of the most significant union elections of the last decade, as workers at an Amazon warehouse in Alabama choose whether to unionize.

The almost 6,000 workers in Bessemer, Ala., will vote on whether to form what would be the first union at one of the e-commerce giant’s American operations.

“The importance of this vote transcends this one facility,” said Stuart Applebaum, president of the Retail, Wholesale and Department Store Union, which would represent the warehouse if a majority of votes cast go its way.

ADVERTISEMENT

“Amazon is transforming industry after industry, and, especially given its size, is determining what the future of work will look like,” he added in an interview with The Hill.

The facility in Bessemer, known as BHM1, opened just last March but quickly drew criticism from workers who described exhausting work quotas, insufficient wages and a failure to protect them from the coronavirus pandemic. 

Similar concerns were raised at other Amazon facilities in protests and walk-outs throughout 2020. The company revealed in October that nearly 20,000 of its employees in the United States had tested positive for COVID-19. It has not publicly updated the numbers since.

In late July, aided by unionized workers from around the Bessemer region, BHM1 employees reached out to the RWDSU and began quietly organizing.

The union went public in October, the RWDSU filed a petition with the National Labor Relations Board in November and by December over 2,000 workers signed cards backing an election, according to the union.

Amazon has maintained that the union does not represent the viewpoints of its 1.1 million workers worldwide, emphasizing that its $15.30 starting wage and health benefits are comparable to if not better than other jobs in the area.

ADVERTISEMENT

In January, shortly after the NLRB determined that conditions were adequate to hold the election, Amazon launched a website, DoITWithoutDues.com, aimed at discouraging workers from voting yes on the union. Though the title of the site mentions union dues, Alabama is a right-to-work state, so employees who are not interested in supporting the potential union would not have to pay dues.

Amazon also pushed to have the election conducted in-person, but the NLRB rejected that request on Friday. The agency has been primarily conducting mail-in elections during the pandemic.

Some workers say the company has engaged in an all-out messaging campaign to try to sway the voters, coating the facility in posters, holding captive-audience meetings pushing against the union and passing out candy and water to workers. 

“Amazon is in my texts, they’re in our breakroom, and they’re even in the bathroom telling us to vote union no,” said Darryl Richardson, a picker at the facility who backs the unionization effort. “It’s an insane level of propaganda, and all of it is very misleading.”

Amazon has also retained Morgan Lewis & Bockius, a top anti-union law firm.

Amazon did not immediately respond to a request for comment for this story.

This is not the first union election at an American Amazon facility. In 2014, equipment maintenance and repair technicians in Delaware voted against unionizing.

Unions are much more common at Amazon locations in Europe, where members of Amazon Workers International have been pushing for higher wages and better working conditions since 2015.

Advocates for the union push at the plant in Alabama say it has the potential to alter workplaces across the country.

“Just the fact that we are going to an election is a game changer for Amazon,” Appelbaum told The Hill. “The election itself now opens the door for more organizing at Amazon throughout North America.”