A $735 million weapons sale is exposing fault lines in the Democratic Party over what to do about escalating violence in Israel, splitting party leaders who remain solid allies of Israel and more progressive Democrats who see Israel’s treatment of Palestinians as a social injustice.

Democratic leaders have paved the way for the sale of joint direct attack munitions, which the Israel Defense Forces can use to make precision strikes, despite the outrage the sale is provoking among progressives.

And even Democrats who have been critical of Israel’s strikes on Gaza, such as Senate Foreign Relations Committee Chairman Bob MenendezRobert (Bob) MenendezBottom line Senators shed masks after CDC lifts mandate Tensions mount among Democrats over US-Israel policy MORE (D-N.J.), said the weapons sale is a done deal and will not be unwound.

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“That arms sale was already noticed a long time ago. That has gone through a whole vetting process already,” said Menendez, a longtime supporter of Israel who opposed the Iran nuclear deal but has been critical of the recent strikes.

Despite that criticism, Menendez said he supports the sale and pointed out “the leadership of both the Senate and — I believe — the House Foreign Relations Committee[s] were notified.”

“That’s the normal process. This is not an unusual process. This is the regular process, regular order on arms sales,” he added.

Opponents of the sale are scrambling for options to respond amid a rapidly closing window for Congress to block the deal.

Most arms sales are subject to a 30-day congressional review period where lawmakers can block a deal if they want. But some close allies, including Israel, are afforded a 15-day review period, and just three days remained Tuesday in the window to block the latest sale to Israel.

The administration notified lawmakers on May 5 that it had approved selling Israel $735 million in weapons, mostly of Boeing-made Joint Direct Attack Munitions that can turn so-called dumb bombs into precision-guided missiles.

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More broadly, progressives, including some in positions of power such as House Defense Appropriations Subcommittee Chairwoman Betty McCollumBetty Louise McCollumBiden approves 5M weapons sale to Israel The Memo: Lawmakers on edge after Greene’s spat with Ocasio-Cortez Biden faces pressure from all sides on Israel MORE (D-Minn.) and Senate Budget Committee Chairman Bernie SandersBernie SandersThe Hill’s Morning Report – Presented by Facebook – Biden wants Congress to pass abortion bill, pushes for Mideast cease-fire Sanders flexes on Biden, seeking to shape Democratic agenda Senators shed masks after CDC lifts mandate MORE (I-Vt.), are increasingly pushing to place more conditions on or revisit the $3.8 billion in military aid the United States sends Israel annually.

Party elders, including House Majority Leader Steny HoyerSteny Hamilton HoyerBacking Biden, Pelosi calls for cease-fire in Israel What’s a party caucus chair worth? House fails to pass drug bill amid Jan. 6 tensions MORE (D-Md.), are supporting U.S. aid to Israel amid rising criticism of that country’s policies by progressives. They say Israel has a right to defend itself and that the U.S. should provide support.

“Hamas is dedicated to the destruction of Israel. … It does not believe that Israel has the right to exist,” Hoyer told reporters on Tuesday. “It is a complicated situation, but I share the president’s view [that] there is no doubt that Israel has the right to defend itself.”

The ongoing conflict between Israel and Hamas — the militant group that controls the Gaza Strip — is now in its second week and shows no sign of abating.

Religious tensions first boiled over at multiple sites in Israel earlier this month when Israeli police raided Al-Aqsa Mosque in East Jerusalem, one of the holiest sites in Islam, leaving hundreds of Palestinians wounded.

Hamas has since fired more than 3,000 rockets at Israel — most intercepted by the Iron Dome, a defense system supported by the U.S. — and the Israeli government has responded with scores of aerial bombings in Gaza. The number of Palestinian civilians killed and injured vastly exceeds the number of reported Israeli civilian casualties thus far.

President BidenJoe BidenFirm behind Arizona audit says no data was destroyed, contradicting GOP allegations Stacey Abrams on not being Biden’s VP: ‘He picked the right person’ Overnight Defense: Top Dem backs off request for Israel arms sale delay | Afghanistan withdrawal up to 20 percent done | Esper returns to defense industry MORE hasn’t publicly demanded Israeli Prime Minister Benjamin NetanyahuBenjamin (Bibi) NetanyahuMORE agree to a cease-fire, but the White House said the president expressed support for a cease-fire when the two leaders spoke Monday.

Speaker Nancy PelosiNancy PelosiThree GOP lawmakers fined 0 for flouting House floor mask rules Problem Solvers Caucus backs Jan. 6 commission GOP splits open over Jan. 6 commission vote MORE (D-Calif.) largely echoed Biden in a Tuesday statement that called for a cease-fire. But in one notable difference that reflects the pressures she’s facing from progressives in her caucus, she called a cease-fire “necessary,” a word Biden did not use.

“It is in the U.S. national security interest to support security in Israel. Hamas exploited a volatile situation to initiate hostilities against Israel, launching more than 3,000 rockets, and as always, Israel has a right to defend herself,” Pelosi said.

“Now, after more than a week of hostilities, it has become even more apparent that a ceasefire is necessary,” she added. “There must be a serious effort on the part of both parties to end the violence and respect the rights of both the Israeli and Palestinian people.”

Neither Biden nor Pelosi called for an immediate cease-fire, as many liberals are doing. The two also did not call on Israel to change its course, as liberals in the party have demanded.

After news reports Monday about the precision-guided munitions deal, progressive fumed. Rep. Ilhan OmarIlhan OmarOvernight Defense: Top Dem backs off request for Israel arms sale delay | Afghanistan withdrawal up to 20 percent done | Esper returns to defense industry Backing Biden, Pelosi calls for cease-fire in Israel Top House Democrat backs off plan to ask for delay in Israel arms sale MORE (D-Minn.) said it would be “appalling” for the sale to move forward, while Rep. Rashida TlaibRashida Harbi TlaibBiden prays for safety of Tlaib’s family in Michigan speech Republican resolution supporting Israel signals growing divide with Democrats Sunrise Movement endorses Nina Turner in special election for Ohio House seat MORE (D-Mich.), the first Palestinian American woman elected to Congress, tweeted that there should be “no more weapons to kill children and families.”

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On Monday night, House Foreign Affairs Committee Chairman Gregory MeeksGregory Weldon MeeksOvernight Defense: Top Dem backs off request for Israel arms sale delay | Afghanistan withdrawal up to 20 percent done | Esper returns to defense industry Backing Biden, Pelosi calls for cease-fire in Israel Biden waiving sanctions for Nord Stream 2 pipeline firm: report MORE (D-N.Y.) convened an emergency virtual meeting of Democrats on the panel to discuss both the arms deal specifically and the crisis in Gaza generally, a congressional aide confirmed to The Hill. At the meeting, Meeks told lawmakers he planned to send a letter to the Biden administration seeking a delay in the sale, the aide said.

But by Tuesday afternoon, Meeks said he dropped the effort after administration officials agreed to brief lawmakers on the sale and the administration’s broader strategy to resolve the crisis.

“What we wanted to do is to have a dialogue and conversation,” Meeks told reporters Tuesday. “We’re going to have a meeting with the administration tomorrow where the issues and the questions that one may have will be able to be asked, and that was the purpose of considering the letter.”

Meeks also emphasized the rocket fire Israel is coming under.

“Hamas is sending thousands of rockets over to Israel. Thank God we do have Iron Dome,” Meeks said. “That’s important. So, we all want — and I can say that took place in the meeting — we all want to get to the point where there’s a secession of aggressions on both sides.”

House Democratic Caucus Chairman Hakeem JeffriesHakeem Sekou JeffriesJeffries endorses Wiley in New York mayor’s race Pelosi: Greene’s ‘verbal assault’ of Ocasio-Cortez could be a matter for Ethics Committee Top Democrat: ‘House Republicans have definitively become a full-blown cult’ MORE (N.Y.) said “there was certainly no pressure that I’m aware of” from leadership on Meeks to scrap the letter.

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Apart from arms sales, the United State supports Israel with $3.8 billion in security assistance annually, as set in a 10-year memorandum of understanding that was signed by the Obama administration in 2016 and entered into force in 2018. The United States is supposed to provide $3.3 billion in Foreign Military Financing funds and $500 million in missile defense assistance each year of the deal.

Even before the current conflict, McCollum proposed a bill that would bar U.S. funding to Israel from being used to support “military detention, interrogation, abuse or ill-treatment” of Palestinian children, property seizures and forcible evictions in the occupied Palestinian territories or the deployment of personnel or equipment to annex territory in the West Bank.

Sanders, for his part, tweeted Sunday that “we must also take a hard look at nearly $4 billion a year in military aid to Israel.”

“It is illegal for U.S. aid to support human rights violations,” he added.

Mike Lillis contributed.

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President BidenJoe BidenRep. Dingell hospitalized for surgery on perforated ulcer Biden administration renews Temporary Protected Status for Haiti Amash warns of turning lawmakers like Cheney into ‘heroes’ MORE‘s efforts to dismantle his predecessor’s immigration legacy are being hamstrung by a State Department that’s still operating with limited capacity due to the coronavirus pandemic.

Since taking office, Biden has reversed several policies former President TrumpDonald TrumpCheney calls Greene’s comments on House mask policy ‘evil lunacy’ Amash warns of turning lawmakers like Cheney into ‘heroes’ Karen Pence confirms move back to Indiana: ‘No place like home’ MORE put in place to block visas for thousands of immigrants seeking to work or join family members in the U.S.

But the same COVID-19 restrictions that helped Trump scale back visas are now hindering Biden, who has made expanding legal pathways for immigration a cornerstone of his first few months in office.

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As of April, about three-fourths of the State Department’s embassies and consulates were at least partially closed, leaving few staff on hand to process visas for those who are no longer blocked by Trump’s order.

“The on-the-ground reality is only marginally affected by the change in administration and policies,” said David Bier, a research fellow at the Cato Institute who analyzed the number of partially closed embassies and consulates.

“The bureaucratic processing is as important as any formal policy. And right now what we’re seeing is State Department’s broad closures are affecting the vast majority of legal immigrants seeking to come to the United States right now, and not enough is being done to facilitate processing of those applications.”

Even as the State Department ramps up vaccinations of its staff, the complications of processing visas during the pandemic are creating a pileup on top of an already daunting backlog.

One result is that the effects of Trump’s policies targeting family based-immigration are living on under Biden’s presidency.

“The Trump administration definitely exacerbated this,” said Megan Essaheb, director of immigration advocacy with Asian Americans Advancing Justice. 

“It’s just going to be really hard to do a full year of visa processing in seven months.”

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There were more than 500,000 immigrant visa applicants ready for interviews at the end of April, with about 22,000 scheduled for this month. That’s roughly a third of the average of 60,000 visa appointments pre-pandemic.

And that’s on top of another 3.7 million people who have submitted an initial application to join family in the U.S.

It’s a backlog the State Department acknowledges has only been made worse over the past year.

“Many of our embassies and consulates remain on a limited staffing posture due to the pandemic,” the department said in a statement to The Hill, noting that COVID-19, along with Trump’s previous orders, have “resulted in profound reductions in the department’s visa processing capacity.”

“U.S. embassies and consulates are working to resume routine visa services on a location-by-location basis as expeditiously as possible in a safe manner. We are making significant efforts with constrained resources to safely return to pre-pandemic workload levels, but are unable to provide a specific date for when this will happen at each post,” the agency said.

As the coronavirus quickly spread around the world last year, Trump signed a flurry of executive orders that aligned with his long-term immigration goals.

The first, signed in April of 2020, blocked visas to almost all those seeking to join relatives already in the U.S., as well as winners of the 55,000 diversity visas allotted each year by lottery to those seeking a green card.

“We must be mindful of the impact of foreign workers on the United States labor market, particularly in an environment of high domestic unemployment and depressed demand for labor. We must also conserve critical State Department resources so that consular officers may continue to provide services to United States citizens abroad,” Trump wrote in the April order.

An order in June restricted the temporary worker visas — popular in the tech industry — as well as those for seasonal workers and others.

The limitations on family-based migration helped the Trump administration in achieving a goal it had sought from the beginning: ending “an antiquated system of family ties, not skill or merit,” the White House wrote in 2017, by limiting who could join family members already living in the U.S.

“It created this situation where we essentially drastically suppressed family-based immigration and we have for a year now,” said Jorge Loweree, policy director at the American Immigration Council, adding that the orders were based on “purported economic reasons.”

“It was very deliberate to carve out people they wanted to carve out for years.”

Other aspects of the complex U.S. immigration system assisted the Trump administration further.

The U.S. caps the number of both family- and employment-based visas every year. However, any family-based visas that aren’t used are then added to the employment-based cap for the following year — a feature that can balloon employment-based opportunities.

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“We’re definitely in limbo for family-sponsored immigration around the world. They don’t know when they’re going to get appointments, and the backlog will continue to grow as they’re not issuing visas at the rate they need to in order to use them all,” Bier said.

“So everyone’s getting pushed back further in line as a consequence of this.”

More than 100,000 unused family-based visas went unused in 2020, boosting the number of employment-based visas for this year.

Loweree said that means the impact of some of Trump’s changes endure even after he’s left office.

“The one thing to understand is there’s this genius in the way they went about doing this, because what they did proved incredibly effective given the way our system is structured,” he said.

“The combination of what they did actually achieved — through manipulating the federal bureaucracy — what they wanted for years, which was to dramatically suppress family-based immigration while boosting employment-based immgration. That’s a trend that has continued and frankly could be worse in the next fiscal year unless there is a move by the Biden administration to ramp up consular processing abroad.”

Some want the State Department to loosen some of its restrictions, going virtual at a time when so many workplaces have done the same.

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“We’d like them to do virtual visa interviews,” Essaheb said.

“There are certainly categories that probably require more scrutiny,” she said, “but there are other applications with familial relationships that are pretty routine, and people who have blood relationships have oftentimes a lot of evidence of that relationship.”

Bier is hoping the State Department might choose to exempt entire categories from interviews, like those that have previously been interviewed or traveled to the U.S. or others with a low risk of overstaying their visa.

Essaheb also hopes there could be a legislative fix — taking action to preserve family-based visas that would otherwise expire.

“We want Congress to save these immigrant visas and roll them over into the new year,” she said.

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Happy Thursday and welcome back to On The Money, where we’ve finally found uncontroversial CDC guidance. 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.

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—Biden tries to navigate fits and starts of economic recovery: An onslaught of surprising economic data is raising difficult questions for President BidenJoe BidenTrump slams ‘weak’ Republicans who don’t want to talk about Arizona audit FDA advises against Chinese-made syringes citing safety issues On The Money: Biden tries to navigate bumpy recovery | Jobless claims hit another post-pandemic low | Treasury calls for 15 percent minimum global tax MORE as he attempts to steer the recovery without derailing it.

• Republicans have pounced on unexpectedly high inflation readings and a disappointing jobs report for April, arguing they are the products of an overzealous government response that could kneecap the economy.
• Democrats counter that price hikes will be temporary, and that government programs and spending are needed to ensure a quick rebound and avoid the kind of multiyear sluggish recovery that followed the Great Recession.

But economists say both sides, to a certain degree, are flying blind given the potential quirks of an economy reawakening from a pandemic-induced slumber. It could take months before either side is vindicated.

“It’s harder to tell in data what’s an anomaly and a blip and what’s a new trend,” said Scott Ruesterholz, a portfolio manager at Insight Investment, pointing to unusual and unexpected starts and stops in the data over the past few months. “This is an unprecedented recession, so we’re having an unprecedented recovery.”

The Hill’s Niv Elis tells us why.

How long until we know? The lag between policy implementation and seeing the results can often take months. 

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• Economists point out that even if GOP governors are successful in their efforts to get people back into the labor force by pulling federal unemployment benefits, there’s likely to be a two-month gap before the numbers will come in showing whether it worked.
• State-level unemployment data for July won’t be available until September, and the emergency programs will have already expired by then.

Read more about the recovering economy: 

• The additional $300 in emergency unemployment benefits likely only has a small effect on recipients’ decisions to take jobs, according to a new working paper from the Federal Reserve Bank of San Francisco. 
• The number of new applications for unemployment insurance fell last week to 444,000, according to data released Thursday by the Labor Department, setting a new post-lockdown low for initial weekly jobless claims.

 

LEADING THE DAY

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House narrowly approves $1.9B Capitol security bill after ‘squad’ drama: The House on Thursday passed a $1.9 billion spending bill to upgrade Capitol security in the wake of the Jan. 6 mob attack in a tight 213-212 vote, with the bill nearly going down because of opposition from liberal Democrats known as the “squad.”

The legislation was approved with three Democrats — Reps. Cori Bush (Mo.), Ilhan OmarIlhan OmarOn The Money: Biden tries to navigate bumpy recovery | Jobless claims hit another post-pandemic low | Treasury calls for 15 percent minimum global tax Hillicon Valley: Amazon facing lawsuits alleging racial, gender bias | Senate Commerce panel advances Biden’s top science nominee | Colonial Pipeline CEO to testify on Capitol Hill in June Will the Squad break away from the Democrats over Israel? MORE (Minn.) and Ayanna PressleyAyanna PressleyLabor secretary faces questions from Democrats in police chief controversy On The Money: Biden tries to navigate bumpy recovery | Jobless claims hit another post-pandemic low | Treasury calls for 15 percent minimum global tax Will the Squad break away from the Democrats over Israel? MORE (Mass.) — voting “no” and another three — Reps. Alexandria Ocasio-CortezAlexandria Ocasio-CortezOn The Money: Biden tries to navigate bumpy recovery | Jobless claims hit another post-pandemic low | Treasury calls for 15 percent minimum global tax Will the Squad break away from the Democrats over Israel? Omar says Facebook refusing to take down ‘hate speech’ ad MORE (N.Y.), Rashida TlaibRashida Harbi TlaibOn The Money: Biden tries to navigate bumpy recovery | Jobless claims hit another post-pandemic low | Treasury calls for 15 percent minimum global tax Will the Squad break away from the Democrats over Israel? Omar says Facebook refusing to take down ‘hate speech’ ad MORE (Mich.) and Jamaal Bowman (N.Y.) — voting “present.” Two Republicans were absent from the vote, while all Republicans present voted “no.”

What went down: Some liberals were questioning if a double standard was at play between police handling of Black Lives Matter protests and when the pro-Trump mob, some of whom carried Confederate flags, stormed the Capitol.

• “We cannot support this increased funding while many of our communities continue to face police brutality while marching in the streets, and while questions about the disparate response between insurrectionists and those protesting in defense of Black lives go unanswered,” Bush, Omar and Pressley said in a joint statement.
• But the impasse sparked frustration among other Democrats, who were agitated that the bill’s critics waited until the floor vote to air their grievances. “That kind of ‘gotcha’ thing does not help,” one liberal Democrat said.

The Hill’s Cristina Marcos and Niv Elis have more here.

 

Treasury pitches global minimum tax rate of at least 15 percent: The Treasury Department on Thursday said it has proposed a global minimum corporate tax rate of at least 15 percent after meeting with officials from other countries as part of international tax negotiations.

“Treasury underscored that 15% is a floor and that discussions should continue to be ambitious and push that rate higher,” the department said in a statement. “Treasury was heartened by the positive reception to its proposals and the unprecedented progress being made towards establishing a global corporate minimum tax.”

The background: 

• The OECD, a group of industrialized countries, has been discussing international tax issues, including a global minimum corporate rate. 
• The Biden administration has been emphasizing the international negotiations as it seeks to raise U.S. taxes on multinational corporations to pay for infrastructure investment.
• Treasury Secretary Janet YellenJanet Louise YellenOn The Money: Biden tries to navigate bumpy recovery | Jobless claims hit another post-pandemic low | Treasury calls for 15 percent minimum global tax Overnight Energy: Biden signs order directing studies of climate-related financial risks | Biden administration takes step toward light bulb efficiency standard Biden signs order directing studies of climate-related financial risks MORE has said that establishing a global minimum tax rate could help to end a “race to the bottom” on corporate taxes and help ensure countries are able to raise sufficient revenue to provide public services.

The Hill’s Naomi Jagoda breaks it down here.

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GOOD TO KNOW

• President Biden on Thursday signed an executive order directing several federal departments and agencies to analyze the risks climate change poses to the U.S. financial system and federal government, the White House announced.
• Two of President Biden’s top Cabinet officials leading his infrastructure push on Thursday pitched lawmakers on the importance of a major investment in affordable housing as Democrats and Republicans attempt to strike a bipartisan deal.
• A group of Democrats on the House Ways and Means Committee on Thursday introduced a bill aimed at encouraging businesses to hire workers who have been hit hard by the coronavirus pandemic.
• The Treasury Department estimated that the gap between taxes owed and taxes paid on time was about $600 billion in 2019 as it provided more details on Thursday about President Biden’s plan to strengthen IRS enforcement.

 

ODDS AND ENDS

• Five women from across Amazon’s corporate offices and warehouses are accusing the e-commerce giant of racial and gender discrimination, according to lawsuits filed Wednesday. 
• A watchdog group launched an advertising campaign on Wednesday to urge major corporations to end their membership with the U.S. Chamber of Commerce over lobbying against voting rights legislation.

The Biden administration on Friday rolled out a new temporary rule paving the way for employers to obtain 22,000 new guest worker visas — a one-third increase over current levels — starting Tuesday.

The program sets aside 6,000 visas for workers from Northern Triangle countries — Guatemala, Honduras, and El Salvador — where many migrants come from seeking to enter the country across the U.S.-Mexico border. The other 16,000 visas will only be available for workers who have held H-2B visas since 2018.

“Today’s joint rule helps American businesses and addresses the need for robust worker protections,” said Homeland Security Secretary Alejandro MayorkasAlejandro MayorkasAdditional 22k guest worker visas to become available Tuesday DHS directs end to immigration detention in two jails under investigation Biden’s immigration agency choices won’t help end the border crisis MORE. “For the first time, we are setting aside supplemental visas for noncitizens from Northern Triangle countries, in furtherance of President BidenJoe BidenJudge agrees to unseal 2020 ballots in Georgia county for audit George Floyd’s family to visit White House on Tuesday Biden: US will provide vaccinations for South Korean service members MORE’s and Vice President Harris’ direction to expand legal pathways for protection and opportunity for individuals from those countries.”

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The administration first announced the expansion in late April, a step that allowed the government to increase pathways of legal immigration without Congressional approval.

Republicans say the spike in border crossings is a crisis, and have hammered Biden for loosening immigration restrictions they say attract more migrants. The border is among the few policy areas where Biden is underwater in public support.

United States Citizenship and Immigration Services acting Director Tracy L. Renaud highlighted the additional steps required to obtain visas, intended to protect both visa holders and U.S. workers.

For example, the rule requires employers to take additional steps to attempt to hire U.S. workers before seeking a visa.

It also allows for “portability,” which both allows workers to begin employment before the petition is approved and change employers more quickly if their work environment is unsafe of abusive.

“DHS and the Department of Labor will also conduct a significant number of post-adjudication reviews to ensure compliance with the program’s requirements,” Renaud said.

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The CEO of Colonial Pipeline, hit by a ransomware attack that forced it to shut down operations for much of last week, confirmed publicly for the first time Wednesday that the company paid the hackers behind the attack so it could regain access to its systems.

Colonial Pipeline CEO Joseph Blount told The Wall Street Journal that he authorized the company to pay the cyber criminals the equivalent of $4.4 million in Bitcoin on May 7, the day of the attack, for the keys to decrypt the network. Bloomberg News previously reported that Colonial paid nearly $5 million.

“I know that’s a highly controversial decision,” Blount told the publication. “I didn’t make it lightly. I will admit that I wasn’t comfortable seeing money go out the door to people like this.”

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“But it was the right thing to do for the country,” he added.

Officials and cybersecurity experts have condemned the company for paying the ransom due to the potential that it might encourage hackers to target other critical infrastructure groups in the future. However, organizations targeted by ransomware attacks that choose not to pay often spend far more money and time recovering.

The attack on Colonial Pipeline was particularly disruptive to the nation, as it provides around 45 percent of the East Coast’s fuel, and the decision to shut down the pipeline to protect operational controls from the hackers caused gas shortages in several states. 

The pipeline resumed operations last week, but on Tuesday it experienced what it described as “intermittent disruptions” to some of its internal servers as part of the restoration process, stressing that they were not due to another cyberattack.

Blount told the Wall Street Journal that he was sad the company was in the spotlight more than ever due to the attack.

“We were perfectly happy having no one know who Colonial Pipeline was, and unfortunately that’s not the case anymore,” Blount said. “Everybody in the world knows.”

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President BidenJoe BidenIsrael-Hamas ceasefire could come as soon as Friday: report US opposes UN resolution calling on Israel-Gaza ceasefire Parents of 54 migrant children found after separation under Trump administration MORE last week announced that the cyber criminals involved, who deployed the “DarkSide” ransomware variant against Colonial, were likely based in Russia, but were not backed by the Russian government. The group was taken offline late last week.

Colonial engaged cybersecurity group FireEye to help investigate and respond to the hack. Sandra Joyce, executive vice president of FireEye’s Mandiant Threat Intelligence, stressed the impossible choice presented to victims of ransomware attacks, which have increasingly included critical organizations such as city governments, schools, and hospitals over the past year. 

“Ransomware puts organizations in an impossible situation,” Joyce said. “If you’re a hospital that’s been a victim of ransomware and they are asking for a certain amount of money typically in cryptocurrency then you have a choice between treating your patients or not treating your patients, and nobody should ever have to be in that situation and that’s exactly what organizations are up against.”

“Do I let all my customer data get spilled, do I release my source code into the wild,” Joyce added.

Updated at 6:02 p.m.

Happy Friday and welcome back to On The Money, where I’m handing off the reins of the newsletter to Naomi and Niv next week. 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—White House counters with $1.7 trillion infrastructure proposal in GOP talks: White House officials are presenting a $1.7 trillion counterproposal to Republicans on Friday in pursuit of a bipartisan deal on infrastructure, reducing the price tag of President BidenJoe BidenJudge agrees to unseal 2020 ballots in Georgia county for audit George Floyd’s family to visit White House on Tuesday Biden: US will provide vaccinations for South Korean service members MORE’s infrastructure proposal by $550 billion.

“In our view, this is the art of seeking common ground,” White House press secretary Jen PsakiJen PsakiGeorge Floyd’s family to visit White House on Tuesday On The Money: White House counters with .7 trillion infrastructure proposal, GOP unimpressed | USDA to start loan forgiveness for thousands of minority farmers Biden: ‘Simply wrong’ for Trump DOJ to seek journalists’ phone records MORE told reporters at a briefing Friday. “This proposal exhibits a willingness to come down in size, giving on some areas that are important to the president … while also staying firm in areas that are most vital to rebuilding our infrastructure and industries of the future.”

Breaking down the counteroffer: 

• According to a three-page memo obtained by The Hill outlining the counterproposal, the White House is offering to reduce funding for broadband expansion to $65 billion to match a Republican offer spearheaded by Sen. Shelley Moore CapitoShelley Wellons Moore CapitoOn The Money: White House counters with .7 trillion infrastructure proposal, GOP unimpressed | USDA to start loan forgiveness for thousands of minority farmers Senate GOP warns of ‘vast differences’ with White House on infrastructure Overnight Energy: Judge denies tribal request for temporary Dakota Access Pipeline shutdown | Biden holds firm on climate provisions in infrastructure counterproposal | G-7 countries commit to restrict international coal funding MORE (R-W.Va.). 
• The new measure also reduces proposed investments in roads, bridges and other major infrastructure projects from $159 billion to $120 billion, which is still more than double the $48 billion originally proposed by Republicans.

The reception: Well, not good. The offer is still well above the price tag offered by Republicans and was received tepidly on Capitol Hill, suggesting a bipartisan compromise remains out of reach.

A Capito spokesperson called the counteroffer “well above the range of what can pass Congress with bipartisan support” and said the White House and Senate Republicans continue to disagree on “the definition of infrastructure, the magnitude of proposed spending, and how to pay for it.”

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“Based on today’s meeting, the groups seem further apart after two meetings with White House staff than they were after one meeting with President Biden,” the Capito spokesperson said.

The Hill’s Morgan Chalfant tells us where things stand.

 

LEADING THE DAY

USDA to start loan forgiveness for thousands of minority farmers: The Department of Agriculture on Friday announced it would begin distributing loan forgiveness funds to thousands of minority and disadvantaged farmers starting in early June as part of a program established under the American Rescue Plan. 

The fund, which is meant to provide government aid to “socially disadvantaged farmers and ranchers,” marks a “major civil rights victory,” Agriculture Secretary Tom VilsackTom VilsackUSDA: Farm-to-school programs help schools serve healthier meals OVERNIGHT MONEY: House poised to pass debt-ceiling bill MORE said in a USA Today op-ed published Friday. 

• The law specifically directs the USDA to pay off the farm loans of nearly 16,000 minority farmers, and Vilsack told The Washington Post on Friday that those who will benefit include Black, American Indian, Hispanic, Alaskan Native, Asian American and Pacific Islander farmers.
• “Today, after months of planning, USDA begins this historic debt relief program,” the secretary wrote in his op-ed.

Here’s more from The Hill’s Celine Castronuovo.

Cost of Biden’s COVID-19 rescue bill revised up to $2.1 trillion: What’s a few hundred billion dollars between friends? President Biden’s COVID-19 relief bill that became law in March will end up with a $2.1 trillion price tag over the next decade once interest costs are taken into account, the nonpartisan Congressional Budget Office (CBO) said on Friday.

The revised estimate — higher than the $1.9 trillion associated with the measure earlier this year — came in response to an inquiry from Sen. Lindsey GrahamLindsey Olin GrahamOn The Money: White House counters with .7 trillion infrastructure proposal, GOP unimpressed | USDA to start loan forgiveness for thousands of minority farmers Cost of Biden’s COVID-19 rescue bill revised up to .1 trillion Don Lemon: Democratic Party is ‘weak’ MORE (S.C.), the top Republican on the Senate Budget Committee.

• CBO said the spending plan would lead to $208 billion in borrowing costs.
• But the budget scoring office noted that its latest estimate does not take into consideration how implementation of the legislation will affect the economy.
• A larger economy would likely lead to higher tax revenues, as well as lower spending on safety net programs and lower borrowing costs.

Niv breaks it down here.

 

ON TAP NEXT WEEK

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Tuesday:

• The Senate Finance Committee holds a confirmation hearing on the nominations of Lily Batchelder and Benjamin Harris to be assistant secretaries of the Treasury, Nellie Liang to be an undersecretary of the Treasury, and Johnathon Davidson to be deputy undersecretary of the Treasury at 9:30 a.m.
• Federal Reserve Vice Chairman of Supervision Randal Quarles testifies before the Senate Banking Committee at 10 a.m.
• A House Financial Services subcommittee holds a hearing entitled “”The Legacy of George Floyd: An Examination of Financial Services Industry Commitments to Economic and Racial Justices” at 12 p.m.

Wednesday:

• The chief executives of Wells Fargo, Goldman Sachs, Citigroup, JPMorgan Chase, Bank of America and Morgan Stanley testify before the Senate Banking Committee at 10 a.m.
• Small Business Administrator Isabella Casillas Guzman testifies before the House Small Business Committee on the SBA’s pandemic relief programs at 10 a.m.
• A House Financial Services subcommittee holds a hearing on consumer credit report accuracy and compliance at 12 p.m.
• Securities and Exchange Commission Chairman Gary GenslerGary GenslerOn The Money: White House counters with .7 trillion infrastructure proposal, GOP unimpressed | USDA to start loan forgiveness for thousands of minority farmers Financial market transactions should not be taxed or restricted Putting the SEC cops back on the Wall Street beat MORE testifies before the House Appropriations subcommittee for an oversight hearing at 2 p.m.

Thursday:

• A House Ways and Means subcommittee holds a hearing on paid family leave at 10 a.m.
• Treasury Secretary Janet YellenJanet Louise YellenOn The Money: White House counters with .7 trillion infrastructure proposal, GOP unimpressed | USDA to start loan forgiveness for thousands of minority farmers On The Money: Biden tries to navigate bumpy recovery | Jobless claims hit another post-pandemic low | Treasury calls for 15 percent minimum global tax Overnight Energy: Biden signs order directing studies of climate-related financial risks | Biden administration takes step toward light bulb efficiency standard MORE testifies before a House Appropriations subcommittee for an oversight hearing at 11 a.m.
• The chief executives of Wells Fargo, Goldman Sachs, Citigroup, JPMorgan Chase, Bank of America and Morgan Stanley testify before the House Financial Services Committee at 12 p.m.

 

GOOD TO KNOW

• The Biden administration on Friday rolled out a new temporary rule paving the way for employers to obtain 22,000 new guest worker visas — a one-third increase over current levels — starting Tuesday.
• Florida Gov. Ron DeSantisRon DeSantisOn The Money: White House counters with .7 trillion infrastructure proposal, GOP unimpressed | USDA to start loan forgiveness for thousands of minority farmers DeSantis signs Florida ‘tax holidays’ into law The Hill’s Morning Report – Presented by Facebook – Senate path uncertain after House approves Jan. 6 panel MORE (R) on Friday signed into law “tax holidays,” or suspensions of taxes, for products such as back-to-school supplies and certain activities in order to encourage spending in the state following the loosening of coronavirus restrictions. 

 

ODDS AND ENDS

• Apple CEO Tim Cook defended the company’s App Store rules during testimony Friday, claiming they protect users’ security.
• Environment and climate leaders from Group of Seven (G-7) countries, made up of several advanced economies, said Friday that they will aim to put restrictions on funding for international power produced from coal. 

The Department of Justice (DOJ) announced Thursday that it had seized 68 lions, tigers and other big cats from Tiger King Park in Oklahoma as part of a federal complaint over the animals’ treatment. 

The DOJ announced in a press release the seizure of the cats at the Thackerville park, owned by Jeffrey and Lauren Lowe, who have received citations for ongoing alleged violations of the Endangered Species Act (ESA). 

The search and seizure had been authorized as part of a court-approved agreement to resolve a DOJ complaint filed against the couple in November that accused them of violating the ESA by illegally taking, possessing, and transporting protected animals, as well as violating the Animal Welfare Act by “exhibiting animals without a license to the public and placing the animals’ health in serious danger.”

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The complaint added that the “animals have suffered from and continue to suffer from easily preventable or treatable conditions, which in some cases has caused the untimely death of animals,” adding that the couple “have then burned or otherwise disposed of the carcasses, including tigers, in makeshift pyres.” 

According to the DOJ, the U.S. Department of Agriculture’s (USDA) Animal and Plant Health Inspection Service has conducted three inspections of Tiger King Park since December 2020, during which “the Lowes received citations for failing to provide the animals with adequate or timely veterinary care, appropriate nutrition, and shelter that protects them from inclement weather and is of sufficient size to allow them to engage in normal behavior.” 

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The Lowes last week were also found in contempt for noncompliance with court orders requiring that they “employ a qualified veterinarian and establish and maintain a program of veterinary care that meets the requirements of the Animal Welfare Act,” the DOJ said in the press release. 

Daniel Card, an attorney for the couple, told a federal judge last week that the Lowes “want out completely.”

“They don’t want to fight this anymore. They don’t want to do it,” Card said, according to The Associated Press. 

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In the Thursday statement, acting Assistant Attorney General Jean E. Williams of the DOJ’s Environment and Natural Resources Division said the seizure of nearly 70 animals “should send a clear message that the Justice Department takes alleged harm to captive-bred animals protected under the Endangered Species Act very seriously.” 

Nicholas L. McQuaid, acting assistant attorney general for the DOJ’s Criminal Division, said in a statement along with Thursday’s announcement, “We are proud to have partnered with the Environment and Natural Resources Division to protect these amazing animals, and will work to ensure that they go to responsible animal preserves where they can be safely maintained rather than exploited.”

The federal complaint said that the couple established the 33-acre park in Thackerville after they closed one in Wynnewood, Okla., in August following a license suspension from the USDA. 

The Wynnewood park was featured in the hit Netflix series “Tiger King,” as was its former co-owner Joseph Maldonado-Passage, better known as “Joe Exotic,” who is currently serving a 22-year sentence in federal prison after being charged with participation in a murder-for-hire plot and violations of federal wildlife laws.

Maldonado-Passage earlier this week appealed for a pardon from President BidenJoe BidenTrump slams ‘weak’ Republicans who don’t want to talk about Arizona audit FDA advises against Chinese-made syringes citing safety issues On The Money: Biden tries to navigate bumpy recovery | Jobless claims hit another post-pandemic low | Treasury calls for 15 percent minimum global tax MORE after several similar appeals to then-President TrumpDonald TrumpTrump slams ‘weak’ Republicans who don’t want to talk about Arizona audit GOP leader’s Jan. 6 call to Trump draws scrutiny in commission fight 20 state AGs tell Education Dept they oppose teaching critical race theory MORE were unsuccessful.

States are increasingly turning to lotteries as a way to try to get hesitant people vaccinated against the coronavirus and boost lagging numbers.

New York and Maryland on Thursday announced that residents who get the COVID-19 vaccine will be eligible for prize money, with Oregon unveiling similar plans on Friday. All three states are following in the footsteps of Ohio, which launched a lottery-focused campaign earlier this month.

Health officials in the Buckeye State are already reporting some promising results: Vaccinations for people 16 and older increased 28 percent the weekend after the lottery announcement, compared to the previous weekend.

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Dan Tierney, a spokesman for Ohio Gov. Mike DeWineMike DeWineMajor dating apps including Tinder, OkCupid adding vaccination badges to dating profiles Overnight Health Care: Maryland to offer lottery prizes for COVID-19 vaccinations | FDA allowing longer refrigerator storage for Pfizer-BioNTech vaccines Ohio vaccination rate jumps 28 percent after lottery announcement MORE (R), said vaccinations had been trending down before the lottery.

“Really the only thing that has changed was the availability of the Vax-a-Million incentive,” Tierney said.

Vaccinated residents in Ohio will be entered to win one of five $1 million prizes.

The approach is garnering interest in other parts of the country. About 10 other states have talked to DeWine or his staff about the lottery incentive, Tierney said.

The White House also gave its support to the idea on Friday.

“From the data we’ve seen, they appear to be working,” White House senior adviser for the COVID-19 response Andy Slavitt said during a press briefing.

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“I think the reason they work is because the vast number of people who are not yet vaccinated are actually not opposed to getting vaccinated,” he added. “They’re just not prioritizing it very high. There are other things going on in their lives. Things that draw attention to it, like the lotteries in those states you mentioned, are, not surprisingly, very effective. And so we’re enthusiastic.”

Health officials are looking for new ways to spur people to get vaccinated, now that the most eager Americans have already received their shots. Nationally, vaccinations have fallen from over 3 million per day in April to about 1.8 million per day, according to Our World in Data.

Still, some experts cautioned that the lotteries are not a cure-all. While lotteries can prompt people who have not gotten around to getting a vaccine yet, they do not address underlying issues like concerns about safety or worries about taking time off work to get vaccinated.

“It doesn’t at all deal with the structural obstacles that might still be there,” said Micah Berman, associate professor of public health and law at The Ohio State University.

“It certainly creates a buzz. It just can’t be the only thing that the state does,” he added.

While there appears to be a short-term increase in vaccinations after the announcement, he noted, it is also unclear whether that will be sustained over the longer term.

“If someone is concerned about the safety of the vaccine, will a lottery push them over that tipping point such that they would get the vaccine? I think we’ll need to see,” said William Moss, executive director of the International Vaccine Access Center at Johns Hopkins University. “My guess right now is that the impact’s going to be marginal of these kinds of incentives, given our understanding of what the reasons underlying the reluctance [are].”

Still, governors noted that some people are not firmly opposed to getting a vaccine, they just might not have gotten around to it yet. A Kaiser Family Foundation poll in April found that while 13 percent of adults said they would “definitely not” get the vaccine, another 15 percent were more persuadable, saying they wanted to “wait and see.”

“The goal is just to get those reluctant folks or people that just haven’t thought about it, hopefully this will get some attention,” said Maryland Gov. Larry Hogan (R) while standing next to a Lotto Ball mascot at a press conference Thursday.

Oregon Gov. Kate BrownKate BrownOregon unveils million vaccine lottery 74 people linked to COVID-19 outbreak at Oregon church Businesses sue Oregon governor over COVID-19 restrictions MORE (D) on Friday tweeted: “If you’ve been waiting to get a vaccine, or you just haven’t gotten around to it yet, we’re going to give you, Oregon, an extra incentive. How about a chance to win a million dollars?”

There are some slight differences between the state programs. Ohio is doing five drawings for $1 million each; Maryland is doing smaller drawings of $40,000 every day for 40 days, followed by a $400,000 drawing on the Fourth of July; New York is offering scratch tickets with prizes from $20 up to $5 million; and Oregon will have a $1 million prize and three dozen $10,000 prizes, one for each county.

There are also smaller incentive efforts. Erie County, N.Y., worked with a local brewery to offer free beer to people getting vaccinated. Maine is offering L.L. Bean gift cards, among other rewards.

“I know that some may say, ‘DeWine, you’re crazy! This million-dollar drawing idea of yours is a waste of money,’” DeWine tweeted upon making Ohio’s vaccine lottery announcement. “But truly, the real waste at this point in the pandemic — when the vaccine is readily available to anyone who wants it — is a life lost to COVID-19.”

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The National Guard is ending its deployment in Washington, D.C. more than four months after troops were called to the district following the deadly Jan. 6 attack on the Capitol.

WUSA 9 reported that 2,149 National Guard troops will return to their home bases this week, after the Department of Defense did not request that the force extend its mission to help protect the nation’s capital past Sunday.

A spokesperson for the D.C. National Guard told WUSA 9 that operations will “return to normal.”

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“The Capitol Police have not requested the Guard to stay past May 23. Once the mission concludes, D.C. National Guard will return to normal operations and the out-of-state Guard members will return to their home station,” Capt. Chelsi B. Johnson of the D.C. National Guard Public Affairs said in a statement to WUSA 9.

The Hill reached out to the D.C. National Guard for comment.

Defense Secretary Lloyd AustinLloyd AustinOvernight Defense: Groups use Afghanistan withdrawal to push for defense budget cuts | Confederate renaming effort could affect ‘hundreds’ of military assets | Progressives see ‘historic’ moment to shift US-Israel relations The Biden administration is poised to absorb the Pentagon’s ‘slush fund’ Groups urge Congress to use Afghanistan withdrawal to cut defense budget MORE in March approved a request to keep nearly 2,300 National Guardsmen at the Capitol building through May 23. 

At the time of the extension, Pentagon press secretary John Kirby said the move was made “after a thorough review of the request and after close consideration of its potential impact on readiness.”

He added during a Pentagon briefing that the extension was granted to “help bolster and support the Capitol Police and their capabilities, which may not be at the level where it needs to be given the fact that we’re in sort of a new environment in this country.”

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National Guards troops from around the country were initially assigned to D.C. to help bolster security for President BidenJoe BidenRep. Dingell hospitalized for surgery on perforated ulcer Biden administration renews Temporary Protected Status for Haiti Amash warns of turning lawmakers like Cheney into ‘heroes’ MORE’s inauguration. 

The Pentagon’s decision not to extend the National Guard’s mission in Washington, D.C. comes amid a battle on Capitol Hill over the creation of a 9/11-style commission to investigate the events of Jan. 6, which sparked the increased security in the district.

The top two Republicans on Capitol Hill, Senate Minority Leader Mitch McConnellAddison (Mitch) Mitchell McConnellRepublicans try but can’t escape Jan. 6  Democrats, GOP face crowded primaries as party leaders lose control Trump slams ‘weak’ Republicans who don’t want to talk about Arizona audit MORE (Ky.) and House Minority Leader Kevin McCarthyKevin McCarthyRepublicans try but can’t escape Jan. 6  Why Republican politicians are sticking with Trump The Hill’s Morning Report – Presented by Facebook – Israel-Hamas cease-fire underway; Biden praises ‘unconditional’ truce MORE (Calif.), both announced last week that they would not support the bipartisan legislation that would establish the commission.

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Le clan Kardashian s’est octroyé une petite sortie en boîte de nuit le 29 juin 2019. Il s’agissait de fêter l’anniversaire d’une femme très proche des soeurs Kardashian : Larsa Pippen. Kourtney (40 ans), Khloe (35 ans), Kim (38 ans) ,Kylie (21 ans) et Kendall Jenner (23 ans) ont organisé une somptueuse soirée en l’honneur de l’ancienne star de télé-réalité The Real Housewives of Miami. Comme toujours, Kim Kardashian en a également profité pour faire plusieurs vidéos publiées sur son compte Instagram.

Toutes les soeurs dans le même club c’est rare.

Même si c’est la fête, Kim n’oublie pas pour autant de faire la promotion de ses nouveaux produits pour le corps kkwbeauty. Les jambes de Larsa sont ainsi passées au crible de la caméra de Kim qui lui a appliqué son fond de teint spécial. On découvre également les soeurs du clan Kardashian faire une petite retouche make up (avec les produits de Kylie Jenner et de Kim). Kim souligne alors : “Toutes les soeurs dans le même club c’est rare.“

Très proche du clan Kardashian, Larsa Pippen est une amie de longue date. En 2012, Larsa avait rejoint Kim et Kourtney dans la télé-réalité Kourtney & Kim Take Miami. En 2014, Kim avait écrit sur son blog à quel point son amitié avec Larsa Pippen comptait pour elle : “J’appelle toujours mon amie, Larsa Pippen, pour obtenir des conseils sur l’éducation des enfants !“

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Interrogée en février 2019 par le site américain TMZ.com, Larsa Pippen avait donné son opinion sur l’infidélité de Tristan Thompson avec Jordyn Woods. Elle avait clairement fait savoir que Jordyn devrait déménager pour ne plus croiser le chemin des soeurs Kardashian. Une mise au point claire et efficace !

Originaire de Chicago, Larsa Pippen (qui aura 45 ans le 6 juillet 2019) a fréquenté l’Université de l’Illinois et a obtenu un diplôme en sciences politiques. Mariée au joueur de basketball légendaire Scottie Pippen, elle a divorcé en 2018 après plus de 20 ans de mariage. Le couple a eu 4 enfants : Scotty, Preston, Sophia et Justin. Elle gère maintenant son blog intitulé Life with Larsa.

That’s my boo

Une publication partage par Larsa Pippen (@larsapippen) le 29 Juin 2019 1 :13 PDT

Magic moments

Une publication partage par Larsa Pippen (@larsapippen) le 25 Juin 2019 8 :11 PDT

Pretty in pink

Une publication partage par Larsa Pippen (@larsapippen) le 21 Juin 2019 10 :06 PDT

Proud of my boo Kylie. Dress: @ohpolly

Une publication partage par Larsa Pippen (@larsapippen) le 22 Mai 2019 7 :02 PDT