Johnson & Johnson on Wednesday said that it anticipates $2.5 billion in annual sales of its COVID-19 vaccine, even as the company faces questions about the vaccine’s effectiveness with the delta variant.

The forecasted sales are a small fraction of the sales expected from the other two authorized vaccines; Pfizer and Moderna have forecast $26 billion and $19.2 billion in annual sales of their vaccines, respectively.

The single-dose vaccine was expected to be a major tool for helping inoculate the world, especially in hard-to-reach areas, but it has struggled to gain a foothold. 

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The company has been plagued by production problems at its only U.S. facility, and use of the vaccine was paused for nearly two weeks while health officials examined rare but serious cases of blood clots.

Global sales of J&J’s COVID-19 vaccine in the quarter were only $164 million.

The company’s financial announcement comes a day after a new study showed the vaccine may be less effective in battling the delta and lambda coronavirus variants than other shots.

The delta variant is estimated to be responsible for 83 percent of all current infections in the U.S., the director of the Centers for Disease Control and Prevention said.

The study, while not peer reviewed, contradicts a report from the company, which announced two weeks ago that their vaccine was effective against the delta variant.

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Happy Wednesday and welcome back to On The Money, where we’re warning you to check your muffins are backed by the full faith and credit of the government. 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 and njagoda@thehill.com. Follow us on Twitter: @SylvanLane and @NJagoda.

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THE BIG DEAL—Bipartisan group says it’s still on track after setback on Senate floor: 

A bipartisan group of senators on Wednesday afternoon issued a joint statement declaring they’re still on track for completing work on a $1.2 trillion infrastructure package, even after the Senate voted earlier in the day to reject a motion to begin debate on the measure.

“We have made significant progress and are close to a final agreement. We will continue working hard to ensure we get this critical legislation right — and are optimistic that we will finalize, and be prepared to advance, this historic bipartisan proposal to strengthen America’s infrastructure and create good-paying jobs in the coming days,” the group of 10 Republicans, 11 Democrats and one independent who caucuses with Democrats said in a statement.

“We appreciate our colleagues on both sides of the aisle, and the administration, working with us to get this done for the American people,” they wrote.

How we got here: 

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• The senators issued the statement minutes after the Senate voted 49-51 against a motion to proceed to a shell House bill, which would have allowed the chamber to begin the infrastructure debate. Senate Majority Leader Charles SchumerChuck SchumerToday’s vote on the bipartisan infrastructure bill is dangerously premature Democrats lay out vision for Civilian Climate Corps The Hill’s 12:30 Report – Presented by Goldman Sachs – Key week for Biden’s infrastructure goals MORE (D-N.Y.) changed his vote to a “no” to give himself flexibility to bring the motion back up for a vote.
• Sen. Joe ManchinJoe ManchinSchumer leaves door open for second vote on bipartisan infrastructure deal On The Money: Bipartisan infrastructure group says it’s still on track after Senate setback | House Democrats want input on bipartisan plan | McConnell warns GOP won’t vote to raise debt ceiling Equilibrium/ Sustainability — Presented by NextEra Energy — West Coast wildfires drive East Coast air quality alerts MORE (D-W.Va.), a leading member of the bipartisan group, said he expects Schumer to schedule another procedural vote early next week, but that depends on the group finalizing its agreement by Monday.

What comes next: Eleven Republicans — including the 10 who issued the joint statement Wednesday afternoon — have sent a letter to Schumer pledging they will vote to proceed to the infrastructure debate next week. That means Schumer would get the 60 votes he needs to proceed to infrastructure legislation, something he failed to do Wednesday afternoon. 

The Hill’s Alexander Bolton brings us up to speed here.

Democrats warn leadership against excluding House from infrastructure talks: Of course, there’s another chamber for the bipartisan infrastructure bill to get through, and some House Democrats made clear they won’t just roll over.

• A group of more than 30 Democrats on the House Transportation and Infrastructure Committee, including Chairman Peter DeFazioPeter Anthony DeFazioOn The Money: Bipartisan infrastructure group says it’s still on track after Senate setback | House Democrats want input on bipartisan plan | McConnell warns GOP won’t vote to raise debt ceiling OVERNIGHT ENERGY: Western wildfires prompt evacuations in California, Oregon| House passes bill requiring EPA to regulate ‘forever chemicals’ in drinking water | Granholm announces new building energy codes Democrats warn leadership against excluding House from infrastructure talks MORE (Ore.), warned party leaders on Wednesday against trying to force House members to rubber-stamp any bipartisan infrastructure package negotiated by the Senate without any changes.
• In a letter addressed to Speaker Nancy PelosiNancy PelosiClub for Growth goes after Cheney in ad, compares her to Clinton House erupts in anger over Jan. 6 and Trump’s role On The Money: Bipartisan infrastructure group says it’s still on track after Senate setback | House Democrats want input on bipartisan plan | McConnell warns GOP won’t vote to raise debt ceiling MORE (D-Calif.) and Schumer, the Democrats called for greater inclusion of policies in a $760 billion transportation funding bill that the House passed earlier this month and argued the emerging Senate proposal doesn’t go far enough.

“Many of these critical reforms are not included or have not been fully addressed through the Senate bipartisan infrastructure process. We should reject any effort to categorically exclude the thorough, transparent, and transformational process undertaken by the House,” they wrote.

The Hill’s Cristina Marcos tells us what the House Democrats want here.

LEADING THE DAY

McConnell warns GOP won’t vote to raise debt ceiling: Senate Minority Leader Mitch McConnellAddison (Mitch) Mitchell McConnellOn The Money: Bipartisan infrastructure group says it’s still on track after Senate setback | House Democrats want input on bipartisan plan | McConnell warns GOP won’t vote to raise debt ceiling Equilibrium/ Sustainability — Presented by NextEra Energy — West Coast wildfires drive East Coast air quality alerts GOP blocks infrastructure debate as negotiators near deal MORE (R-Ky.) is warning that Republicans won’t help raise the debt ceiling and is Democrats to include the spending hike in an infrastructure bill that they can pass along party lines.

“I can’t imagine there will be a single Republican voting to raise the debt ceiling after what we’ve been experiencing,” McConnell told Punchbowl News.

McConnell — whose office confirmed his remarks to The Hill — added that Democrats should include the hike in reconciliation, the process they are using to pass a $3.5 trillion spending package by a simple majority in the Senate.

• Under a 2019 deal during the Trump administration, Congress agreed to let the government borrow through July 31.  
• To raise the debt ceiling outside of reconciliation, Democrats would need 10 GOP votes in addition to all 50 members of their own caucus.  But top Republicans have been sending warning signs for months that they won’t agree to a “clean” increase of the debt limit. 

Jordain Carney has more here.

CBO: Key debt limit date likely in October or November: The Congressional Budget Office (CBO) on Wednesday forecasted that the Treasury Department would most likely run out of cash in October or November absent congressional action on the debt limit.

The CBO estimated in a report that “unless the debt limit is increased, the Treasury, after using all available extraordinary measures, will probably be unable to make its usual payments starting sometime in the first quarter of the new fiscal year, most likely in October or November, although an earlier or later date is possible.”

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“After that point, the debt limit would cause delays of payments for government activities, a default on the government’s debt obligations, or both.”

GOOD TO KNOW

• Mark Zandi, the chief economist of Moody’s Analytics, released a new report on Wednesday that endorsed the bipartisan infrastructure deal and reconciliation package being negotiated on Capitol Hill, concluding that the initiatives would benefit the economy.
• Roughly $3 billion of the $46 billion allocated for emergency rental aid has been used to cover rent, utilities and other related expenses with less than two weeks until a federal eviction ban expires.
• The federal government has forgiven about $400 billion in pandemic relief loans through the Paycheck Protection Program (PPP), according to a group of internal watchdogs. 
• Small businesses are scrambling to hire enough workers to meet surging demand.

ODDS AND ENDS

• A Massachusetts couple is suing Internet company eBay alleging harassment and abuse from former employees, The Associated Press reported on Wednesday.
• The House Energy and Commerce Committee on Wednesday approved multiple pieces of legislation meant to strengthen telecommunications against cyberattacks.

Lawmakers and experts on Wednesday warned of gaping cybersecurity vulnerabilities in the nation’s critical water sector amid escalating attacks against a number of U.S. organizations. 

“I believe that the next Pearl Harbor, the next 9/11, will be cyber, and we are facing a vulnerability in all of our systems, but water is one of the most critical and I think one of the most vulnerable,” Sen. Angus KingAngus KingHillicon Valley: Senators introduce bill to require some cyber incident reporting | UK citizen arrested in connection to 2020 Twitter hack | Officials warn of cyber vulnerabilities in water systems Bipartisan group says it’s still on track after setback on Senate floor Officials warn of cybersecurity vulnerabilities in water systems MORE (I-Maine), the co-chairman of the Cyberspace Solarium Commission (CSC), testified to the Senate Environment and Public Works Committee.

“There is an incipient nightmare here, and it involves all sectors of our critical infrastructure, but water I think is probably the most vulnerable because of the dispersed nature of water systems in the country,” he warned.

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King’s concerns came during a committee hearing on cybersecurity vulnerabilities in critical infrastructure that zeroed in on concerns around water and wastewater treatment facilities. 

Cyber threats have soared in recent years, including recent ransomware attacks on critical infrastructure such as Colonial Pipeline, and the water sector has not been immune. 

A hacker unsuccessfully attempted to poison the water supply of Oldsmar, Fla., earlier this year by breaching city systems that control chemical balances, while NBC News reported that a hacker separately breached a water treatment plant in San Francisco in January. The Justice Department in March indicted an individual on a charge of hacking into and tampering with water systems in a rural Kansas county.

“It was through sheer luck that none of these incidents affected customers,” Rep. Mike GallagherMichael (Mike) John GallagherOfficials warn of cybersecurity vulnerabilities in water systems Milwaukee alderwoman launches Senate bid There’s ‘something wrong with our bloody ships today’ MORE (R-Wis.), the other co-chairman of the CSC, testified to the same Senate panel on Wednesday. “A more sophisticated adversary could impact the safety of thousands of Americans through a cyberattack on our water supply.”

John Sullivan, the chief engineer of the Boston Water and Sewer Commission, testified Wednesday that his organization was hit by a ransomware attack last year. While it was able to recover without any operations being compromised, Sullivan stressed that many of the nation’s 50,000 drinking water systems and 16,000 wastewater systems lack the resources and knowledge to respond to a cyberattack.

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“What if, for example, the intruder was not immediately detected, and was able to manipulate pumps to drain a water tower, or restrict distribution to certain areas,” Sullivan wrote in his prepared remarks for the committee. “Such an outcome not only would have undermined the public’s confidence in their drinking water but would have carried severe impacts on the community’s infrastructure and public health.”

Sophia Oberton, the special projects coordinator for the city of Delmar, which falls in both Maryland and Delaware, noted that her 4,500 person town had only three licensed drinking water operators to perform functions from responding to line breaks to performing lead tests to compiling reports.

Oberton stressed that while her town may have less people than a city like Boston, one hacking incident could lead to “psychological panic on a national scale as communities fear their own drinking water supply could be threatened.”

“This is why small communities believe that protecting our water supplies from any cyberattack is just as important as protecting large communities,” Oberton wrote in her prepared remarks. 

Many of the nation’s water facilities are rural, and often have very few resources and training to respond to cyberattacks as opposed to other sectors, such as banking or defense, which are heavily regulated.

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When questioned by committee members, Oberton said that there were no cybersecurity training requirements to obtain her water operators’ license and that there were “no specific standards” operators adhered to from the federal level on cybersecurity. Sullivan testified that the only federal regulation his organization had on cyber was self-certifying their systems. 

“So that’s a pretty open situation,” Sen. Sheldon WhitehouseSheldon WhitehouseOfficials warn of cybersecurity vulnerabilities in water systems Democrats seek to tackle climate change with import tax On The Money: Democrats reach deal on .5T target | Biden rallies Democrats: ‘We’re going to get this done’ MORE (D-R.I.) quipped. “I hope very much that in this committee we will start to develop things that will help you work through this.”

The bipartisan leaders of the Senate Environment and Public Works Committee agreed with the need to take action to secure water systems, with ranking member Shelley Moore CapitoShelley Wellons Moore CapitoOfficials warn of cybersecurity vulnerabilities in water systems Graham, Hawley call on Judiciary Committee to hold hearing on US-Mexico border GOP senators urge Biden to keep Trump-era border restrictions MORE (R-W.Va.) noting cybersecurity policies would likely be included in the upcoming Water Resources Development Act.

“I believe it is incumbent on us to recognize that cybersecurity is a long-term, constantly evolving challenge,” Committee Chairman Tom CarperThomas (Tom) Richard CarperOfficials warn of cybersecurity vulnerabilities in water systems K Street sees record revenues amid Biden lobbying boom First responders shouldn’t have to tackle tigers MORE (D-Del.) testified. “Addressing this challenge requires sustained federal investment, not one-time solutions.”

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The Biden administration’s push to weed out COVID-19 misinformation online is spotlighting calls to reform Section 230, while further highlighting the deep partisan divide among lawmakers’ approaches to modify the law that provides tech companies a liability shield.

Critical comments against Facebook made by President BidenJoe BidenKentucky lawmaker faces scrutiny for comparing Fauci to Jonestown cult leader Omar leads lawmakers in calling for US envoy to combat Islamophobia Public charter schools group blasts proposed Democratic cut MORE and action taken by Twitter against a controversial lawmaker this week raised the pressure on big tech companies already on defense over their content policies, but also showcased the opposing reasons both parties are concerned.

Biden in recent days joined congressional Democrats’ efforts to press social media companies to take action against misinformation about the coronavirus and vaccines. But amid the administration’s push, Republicans are piling on criticism of the Silicon Valley giants and the government-led effort to hold them accountable.

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Twitter temporarily suspended Rep. Marjorie Taylor GreeneMarjorie Taylor GreeneGOP efforts to downplay danger of Capitol riot increase The Memo: What now for anti-Trump Republicans? Rep. Marjorie Taylor Greene says she’s meeting with Trump ‘soon’ in Florida MORE (R-Ga.) on Monday for sharing misleading claims about the coronavirus, in line with the platform’s policies around posting coronavirus misinformation. The congresswoman shortly after used her active Facebook account to bash the social media company for “censorship.”

Greene does not appear to have posted the same or similar false claims about the coronavirus on Facebook as she did on Twitter that led to her 12-hour suspension.

Meanwhile, Biden on Monday walked back his blunt accusation Friday that Facebook is “killing people” with misinformation about the virus, but continued to press the platform to “do something about the misinformation, the outrageous misinformation about the vaccine.”

A battle is brewing in Washington with both major parties using the tech platform’s supposed removal of misinformation, or lack thereof, to push for an overhaul of a controversial law that provides the platforms a legal liability shield over content posted by third parties. The cross-purposes of the two parties could mean any efforts to reform the law won’t go far, especially in the 50-50 Senate where at least 60 votes are needed to advance most legislation.

Section 230 of the Communications Decency Act, which provides the liability shield, has come under attack by both parties in recent years — albeit for different reasons.

Republicans have centered their push for Section 230 repeal and reform around unsubstantiated claims that tech platforms are censoring content with an anti-conservative bias.

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Sen. Marsha BlackburnMarsha BlackburnWhite House looks to cool battle with Facebook Republicans raise concerns about Olympians using digital yuan during Beijing Games GOP senators invite Yellen to brief them on debt ceiling expiration, inflation MORE (R-Tenn.), who introduced a Section 230 reform bill last year, wrote to the White House over the weekend condemning the administration for saying it would flag problematic posts to the companies.

“These revelations are deeply concerning. The blatant actions by your administration to work with big tech companies to censor Americans’ free speech are shocking,” Blackburn wrote.

Sen. Mike LeeMichael (Mike) Shumway LeeLawmakers unveil measure increasing Congress’s control of war authorizations GOP senators invite Yellen to brief them on debt ceiling expiration, inflation A plan to address the growing orphaned wells crisis MORE (Utah), the top Republican on the Senate Judiciary antitrust subcommittee which is also looking to crack down on tech giants, similarly slammed the White House’s actions to pressure Facebook to take a more aggressive approach to removing misinformation.

“They’re a private for-profit corporation that can make its own decisions, but when it’s doing it with collusion in government it looks to me a lot like a First Amendment violation,” Lee said last week on Fox News.

In the House, Section 230 reform is listed as a top priority in tech agendas laid out by Judiciary Committee ranking member Jim JordanJames (Jim) Daniel JordanOvernight Health Care: Fauci clashes with Paul – again | New York reaches .1B settlement with opioid distributors | Delta variant accounts for 83 percent of US COVID-19 cases Pelosi weighing GOP picks for Jan. 6 probe Fauci: Paul doesn’t know what he’s talking about ‘and I want to say that officially’ MORE (R-Ohio) and Energy and Commerce Committee ranking member Cathy McMorris RodgersCathy McMorris RodgersHouse GOP to launch climate caucus New Alzheimer’s drug sparks backlash over FDA, pricing FDA approves first new Alzheimer’s drug in almost 20 years MORE (R-Wash.).

Rodgers slammed the White House’s efforts last week, tweeting: “The answer to speech you may disagree with is always more speech, not less. That is the American way.”

Jordan’s agenda released earlier this month calls for a “statutory basis” for Americans to challenge tech platforms in court for “censorship and silencing of conservatives.”

Similarly, former President TrumpDonald TrumpOn The Money: Schumer pressured from all sides on spending strategy | GOP hammers HUD chief over sluggish rental aid | Democrat proposes taxes on commercial space flights Overnight Health Care: Fauci clashes with Paul – again | New York reaches .1B settlement with opioid distributors | Delta variant accounts for 83 percent of US COVID-19 cases Overnight Defense: Military justice overhaul included in defense bill | Pentagon watchdog to review security of ‘nuclear football’ | Pentagon carries out first air strike in Somalia under Biden MORE filed a lawsuit this month against Facebook, Twitter and Google over allegations of censorship following the bans and suspensions put in place against Trump’s account over posts he made about the Jan. 6 riot at the Capitol.

The basis of the argument, that the removal of such content is a violation of the First Amendment, misapplies the right to private companies, and legal experts say the suit will almost certainly be dismissed.

Democrats differ from their GOP colleagues by calling for Section 230 reform in a way that aims to hold the companies more accountable to crack down on certain third party content.

Democratic Sens. Amy KlobucharAmy KlobucharBiden to appoint Big Tech critic to DOJ antitrust role White House looks to cool battle with Facebook The Hill’s 12:30 Report – Presented by Goldman Sachs – Key week for Biden’s infrastructure goals MORE (Minn.), Mark WarnerMark Robert WarnerThe Hill’s Morning Report – Will Schumer back down on his deadline? Schumer sets up Wednesday infrastructure showdown Biden opens new cyber fight with China MORE (Va.) and Mazie HironoMazie Keiko HironoNumber of nonwhite Democratic Senate staffers ticks up from 2020 Hirono tells Ted Cruz to stop ‘mansplaining’ ‘Killibuster’: Democratic angst grows as filibuster threatens agenda MORE (Hawaii) introduced a bill that would remove some of the protections to allow users who face cyberstalking, targeted harassment and discrimination to seek legal action against the platforms.

Klobuchar used the debate around how platforms are handling coronavirus misinformation, following the surgeon general’s advisory on health misinformation last week, to boost the bill.

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“I think we also should look at changing the liability standards when it comes to vaccine misinformation. Senator Warner and Hirono and I already introduced a bill that would focus on discriminatory content and the like,” she said Sunday on CNN’s “State of the Union.”

Facebook has defended its policies against the criticism of vaccine misinformation. A spokesperson for the platform said “more than 2 billion people have viewed authoritative information about COVID-19 and vaccines on Facebook,” and more than 3.3 million Americans have used its vaccine finder tool.

But there are at least 284 public and private anti-vaccine Facebook groups spreading COVID-19 vaccine misinformation and conspiracy theories, according to a report published Tuesday by the left-leaning watchdog group Media Matters. The groups had more than 520,000 combined members, based on the report.

A spokesperson for Facebook said the company is “reviewing the report and will take action against groups that violate our policies.”

Trump’s efforts to repeal Section 230 failed before he left office, but the Biden administration has also indicated it’s open to Section 230 reform.

“We’re reviewing that,” White House communications director Kate BedingfieldKate BedingfieldWhite House uses Trump’s words praising China to slam McCarthy’s Biden criticism Biden, Putin begin high-stakes summit in Geneva Psaki signals she’ll step down next year MORE said Tuesday on MSNBC’s “Morning Joe” about Section 230.

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“They should be held accountable and I think you’ve heard the president speak very aggressively about this. He understands this is an important piece of the ecosystem,” Bedingfield said.

Pressed for more information about the review, a White House official told The Hill: “We are continuing to track the Congressional process to reform Section 230.”

“The President continues to believe that this near-unlimited immunity for platforms must come to an end,” the official said.

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A group of Democratic lawmakers is urging President BidenJoe BidenBiden says wages will need to increase to solve recruitment problems Caitlyn Jenner pledges to support Trump if he makes another bid for the White House Biden: Republicans who say Democrats want to defund the police are lying MORE to be actively involved in his administration’s review of the nation’s nuclear policy and make “bold decisions” that would reduce the role of nuclear weapons in U.S. national security strategy.

“Mr. President, as a United States senator and then as vice president, you were a party to every major nuclear weapons debate of the past five-decades. From bolstering the Anti-Ballistic Missile Treaty, to building European support for the Intermediate-Nuclear Forces Treaty, to securing votes for ratification of the New START Treaty, you have consistently been on the right side of history,” the 21 senators and House members wrote in a letter to Biden obtained by The Hill.

“Your administration’s [Nuclear Posture Review] is a watershed moment where you can reject a 21st century arms race and make bold decisions to lead us towards a future where nuclear weapons no longer threaten all humanity,” they added, using the formal name for the review.

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The letter was organized ​​Sens. Ed MarkeyEd MarkeyOVERNIGHT ENERGY: Democrats lay out vision for Civilian Climate Corps | Manchin to back controversial public lands nominee | White House details environmental justice plan Democrats lay out vision for Civilian Climate Corps The Hill’s Morning Report – Presented by Goldman Sachs – Biden rallies Senate Dems behind mammoth spending plan MORE (D-Mass) and Jeff MerkleyJeff MerkleyThis week: Senate faces infrastructure squeeze Accused Capitol rioter’s bail revoked after leaving lewd voicemails for probation officer Senate Democrats hit speedbumps with big spending plans MORE (D-Ore.) and Reps. Don Beyer (D-Va.) and John GaramendiJohn Raymond GaramendiEquilibrium/ Sustainability — The gentler side of Shark Week Pelosi rebuffs McConnell on infrastructure The stakes couldn’t be higher as Biden prepares his nuclear posture review MORE (D-Calif.). The four lawmakers are the co-chairs of the congressional Nuclear Weapons and Arms Control Working Group.

The letter comes as the Biden administration is poised to kick off its Nuclear Posture Review (NPR) this month. The review, which is expected to conclude in early 2022, will update the Trump administration’s 2018 nuclear blueprint. It has been seen as an opportunity by arms control advocates to curtail some of former President TrumpDonald TrumpCaitlyn Jenner pledges to support Trump if he makes another bid for the White House Biden says he doesn’t want voting rights ‘wrapped up’ in filibuster debate Club for Growth goes after Cheney in ad, compares her to Clinton MORE’s more controversial proposals.

The Trump-era review in some ways followed one put forward by the Obama administration in 2010, such as endorsing the modernization of the triad — the ability to launch nuclear weapons by land, sea or air. But it deviated in other ways, such as calling for new weapons like the low-yield submarine-launched warhead that has since been deployed and raising the possibility of using nuclear weapons to respond to non-nuclear attacks.

In their letter to Biden, the lawmakers called on the president to eliminate the W76-2 low-yield warhead that was deployed by the Trump administration, as well as a nuclear-armed sea-launched cruise missile that is in early stages of development.

Both weapons, the lawmakers argued, “are more likely to exacerbate competition with Russia and China and invite miscalculation in a crisis than meet our deterrence and alliance commitments.”

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Some lawmakers, including several who signed the letter, have also previously called for the United States to adopt a “no first use” policy that would explicitly state the United States would not be the first country to use a nuclear weapon in a military conflict.

Biden himself said when he was vice president in 2017 that he finds it “hard to envision a plausible scenario in which the first use of nuclear weapons by the United States would be necessary or make sense.”

In their letter, the lawmakers urged Biden to use the review to declare a policy that would “assign a reduced role for U.S. nuclear weapons,” consistent with his 2017 comments.

“We likewise conceive of no situation where the U.S. introduction of nuclear weapons to an armed conflict in response to a non-nuclear weapons attack would be consistent with the principles of necessity, discrimination and proportionality,” they wrote. “We hope that the NPR operationalizes your previously stated view that the United States will not need to fire the first shot in a nuclear conflict and that it configures its nuclear forces away from that warfighting posture accordingly.”

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The letter also targets the intercontinental ballistic missile (ICBM) replacement program known as the Ground-based Strategic Deterrent (GBSD). This program, which began during the Obama administration, has long been in the crosshairs of nuclear opponents who argue it would be more cost effective to extend the life of the existing Minuteman III ICBMs or that the land component of the nuclear triad should be eliminated altogether.

The lawmakers specifically called for an “independent, outside organization” to conduct a “thorough review of the technical feasibility” of extending the life of the Minuteman IIIs.

“We are confident that this review will conclude that steps such as a modest reduction in the deployed number of ICBMs and/or reducing the number of annual flight tests can safely extend the lifespan of Minuteman III until at least 2050, not to mention realize savings of tens of billions of taxpayer dollars through the late 2030s,” they wrote.

More generally, the lawmakers urged Biden to use his Nuclear Posture Review to examine the “number and types of new weapons needed to deter nuclear attack.”

The letter cited a recent estimate from the Congressional Budget Office that updating and maintaining the U.S. nuclear arsenal over the next 10 years could cost $634 billion.

A reduction in the size of the U.S. nuclear arsenal, the lawmakers wrote, “could reduce the mounting bill to U.S. taxpayers and restore U.S. global leadership on arms control, while meeting our national security and allied security commitments.”

The lawmakers also called for the NPR to review what the climatic, environmental and humanitarian costs of a U.S. nuclear strike would be, as well as to commit to “pursuing robust diplomacy with Russia and China on arms control.”

“We respectfully ask that you directly guide the NPR process to reduce the role of U.S. nuclear weapons in our national security strategy, forego development of new nuclear weapons, and develop a saner declaratory policy on nuclear weapons use,” they wrote.

Extreme flooding in central China has displaced more than 1.2 million people and killed at least 25.

The Washington Post reported more than 17,000 firefighters have been mobilized for rescue operations, and Chinese President Xi Jinping has issued a statement ordering authorities to prioritize people’s safety and property.

Weather officials say that the conditions are the heaviest rains seen in China in 1,000 years, according to Reuters.

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Around 100,000 people have been evacuated from the city of Zhengzhou, the capital city of Henan province where much of the flooding has occurred.

The evacuations come after about 25 inches of rain fell in Zhengzhou between Saturday and Tuesday, the equivalent to a year’s worth of rain the city normally sees. More rain is forecast for Henan for the next three days.

The rains have shut down much of transportation in Henan, with train services suspended, highways closed and flights either canceled or delayed, according to Reuters.

“Flood prevention efforts have become very difficult,” Xi said in a statement on state television.

Multiple Chinese businesses, insurers and banks have said that they have offered donations and emergency aid to the local governments of Henan, totaling about $300 million.

The Post noted that the flooding serves as a major blow to China’s COVID-19 recovery, which has largely been successful after a coronavirus outbreak that was believed to have originated in Wuhan. 

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Zhengzhou is major transportation and logistics hub in the country.

Zhang Lanjuan, a volunteer helping in the flood rescue efforts, spoke to the Post and described about 200 people trapped in a neighborhood she visited on Wednesday by the high waters.

“They had no electricity, no water, no food, and no cell signal,” Zhang said.

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Confidence in big business and big tech among Republicans has fallen somewhat according to a new survey released by Gallup on Monday.

According to the survey, 61 percent of respondents who identified as Republicans said they had a “great deal” or “some” confidence in big business, indicating a drop of 20 percentage points from when the same poll was conducted last year.

The drop was even steeper when it came to big tech, with just 52 percent of Republicans expressing confidence in this sector, showing a drop of 25 percentage points.

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Gallup notes that Republican confidence in big businesses has historically remained relatively high, with an average net confidence score of plus 11 percentage points observed from 1973-2020. Since Gallup began recording confidence levels in 1973, Republicans’ confidence has only gone negative during times of financial crisis, such as in 1981 and 2009.

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In comparison, confidence in big business among Democrats grew this past year. According to Gallup, 60 percent expressed a “great deal” or “some” confidence in big business, an increase of 7 percentage points. When it came to big tech, 76 percent said they had confidence in large technology companies, a drop of 7 percentage points.

“Big business and large technology companies have lost significant support from Republicans nationwide; each now generates high confidence from less than a third of Republicans,” Gallup wrote, noting that these findings fall in line its report earlier this year that found Republican satisfaction in the size of influence of major corporations was at an all-time low.

“While the poll doesn’t answer why these changes have occurred, the trend spans a year when many corporations became more vocal about racial justice and took public stances in societal debates over voter laws and the Jan. 6 insurrection,” Gallup wrote.

“Added to that, large social media companies have been rebuked in conservative media outlets for blocking certain content about the election and the pandemic, and for shuttering former President Donald TrumpDonald TrumpGreene gets 12-hour Twitter suspension over COVID-19 misinformation Aides who clashed with Giuliani intentionally gave him wrong time for Trump debate prep: book Overnight Defense: Afghan evacuees to be housed at Virginia base | Biden looks to empty Gitmo MORE‘s social media accounts.”

The survey was conducted from June 1-July 5 and involved a random survey of 1,381 U.S. adults from all 50 states. The results have a margin of error of plus or minus three percentage points with a 95 percent confidence level.

Salt Lake City’s mayor and city council adopted a joint resolution on Tuesday declaring racism a public health crisis and saying that the city is taking steps to “confront the systems that have resulted in generational injustice and health inequities.”

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In the joint resolution, the council and mayor stated that racism harmfully impacts the physical and mental health of communities of color, creating both preventable and measurable health disparities. 

“We are publicly acknowledging the existence of a grave inequity many in our community have long experienced, and are committing ourselves to creating policies and ordinances that are anti-racist,” Mayor Erin Mendenhall (D) said in a tweet on Tuesday.

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Citing the coronavirus as an example, Salt Lake City officials say the pandemic “has illustrated how pre-existing structural inequities created heavier burdens of disease, death, and social consequences onto communities of color in Utah.” 

Citing data from Utah’s Department of Health, the joint resolution said that though Latinos accounted for roughly 14 percent of the state’s population, they made up 40 percent of its COVID-19 cases.

The data also pointed to stark differences in the health of communities of color and white communities when it came to odds of infection, case fatality rates, cancer screenings, birth weights and infant mortality rate.

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The city said that it was creating a “equity plan” for the city “with a goal to methodically review all City practices and policies and confront the systems that have resulted in generational injustice and health inequities.”

“We commit to look internally, externally, and encourage all who reside, work, and own businesses in our city to commit to the work necessary to dismantle racist legacies and equitably work to repair our communities,” the joint statement said.

The joint resolution follows remarks that Centers for Disease Control and Prevention Director Rochelle WalenskyRochelle WalenskySalt Lake City mayor, city council sign joint resolution declaring racism a public health crisis Illinois reporting six times more gamma variant cases than delta: report Texas hospital reports first case of lambda COVID-19 variant MORE made in April saying that racism was “serious public health threat.”

President BidenJoe BidenAides who clashed with Giuliani intentionally gave him wrong time for Trump debate prep: book Biden says Eid al-Adha carries ‘special meaning’ amid pandemic Manchin to back nominee for public lands chief MORE is putting new pressure on China by publicly attributing the wide-ranging Microsoft Exchange Server cyberattack to hackers affiliated with Beijing.

The coordinated effort by the United States and its allies on Monday to condemn China’s aggressive behavior in cyberspace marks the first time NATO has formally rebuked Beijing for cyberattacks.

White House officials touted the effort as unprecedented given the breadth of nations that joined together. 

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“We’ve crossed the line on what can be tolerated anymore. China is more aggressive when it comes to espionage,” James Lewis, a senior vice president at the Center for Strategic and International Studies, told The Hill. “This is to make sure that the Chinese don’t think we forgot about them and they had an open door.”

The move comes four months after Microsoft announced that vulnerabilities in its Exchange Server application were being exploited by a Chinese state-sponsored hacking group known as “Hafnium.” The vulnerabilities were used by the hacking group, and later other cyber criminals, to compromise thousands of organizations around the world. 

The attack came on the heels of the massive SolarWinds hack, which allowed Russian hackers to compromise nine U.S. federal agencies. Both incidents forced Biden to zero in on cybersecurity. 

The public rebuke of China promises to further escalate tensions between the U.S. and China, which have not eased with the transition from the Trump administration to the Biden administration. 

On his first foreign trip last month, Biden urged allies to take a firmer line on calling out China for its human rights abuses and rallied the world’s wealthiest democracies behind a global infrastructure proposal to counter China’s Belt and Road Initiative. Biden has also framed his domestic agenda as necessary in order to outcompete China. 

“In the competition against China and other nations of the 21st century, let’s show that American democracy and the American people can truly outcompete anyone,” Biden said earlier this month as he signed a sweeping executive order to crack down on anti-competitive business practices. 

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The U.S. has not ruled out further actions to punish China over its behavior in cyberspace. Biden indicated to reporters on Monday that he would be briefed on the cyberattacks again on Tuesday.  

The Biden administration “has placed a premium on showing a united front with allies in condemning the Chinese, rather than slapping on U.S. sanctions,” said Lisa Curtis, who was senior director for South and Central Asia on the National Security Council under the Trump administration. “We will have to see whether the collective naming and shaming has an impact on Chinese cyber activity in the future.”

Some lawmakers are pressing Biden to do more.

“The only thing bad guys understand is strength,” House Homeland Security Committee ranking member John KatkoJohn Michael KatkoBiden opens new cyber fight with China Moderate Democrats call for 9/11-style panel to probe COVID-19 origins Senate unanimously approves Jen Easterly to lead DHS cyber agency MORE (R-N.Y.) said Monday in a statement to The Hill. He said the Chinese Communist Party “is the greatest threat to U.S. interests and economic security for the next 50 years and it’s time the Biden Administration start treating them as such.”

Senate Intelligence Committee Chairman Mark WarnerMark Robert WarnerSchumer sets up Wednesday infrastructure showdown Biden opens new cyber fight with China Afghan evacuees to be housed at Virginia base MORE (D-Va.) praised the administration for its actions but stressed in a statement that “there’s still more work to do to address our cyber vulnerabilities.”

The U.S. has previously called China out for its involvement in cyberattacks, but the number of countries that joined the U.S. in admonishing China on Monday signaled an escalation. The United Kingdom, the European Union and the “Five Eyes” countries all joined the effort. 

“Biden is reinforcing his effort to create a united front of democracies to stand up to China. This was a pretty broad-based coalition,” said Charles Kupchan, who served as senior director for European affairs on President Obama’s National Security Council. “We’re talking about a broad array of countries that have agreed to speak up, and that makes a difference because, unlike Russia, which in some ways relishes international criticism, China has thin skin.”

The U.S. economic relationship with China would complicate any effort to slap sanctions on Beijing, though the Biden administration has kept Trump-era tariffs on Chinese goods in place.

“We are not holding back. We are not allowing any economic circumstance or consideration to prevent us from taking actions where warranted. And also we reserve the option to take additional actions where warranted as well,” White House press secretary Jen PsakiJen PsakiWhite House confirms Harris got COVID-19 test after meeting with Texas Democrats Overnight Defense: Afghan evacuees to be housed at Virginia base | Biden looks to empty Gitmo White House looks to cool battle with Facebook MORE told reporters Monday.

Officials pointed to the Justice Department’s indictment Monday of four individuals affiliated with China’s Ministry of State Security in a global hacking operation as evidence of the U.S. taking steps to punish Beijing. Still, those hackers are likely to remain out of reach of U.S. prosecutors so long as they remain in China.

Biden has met with a number of world leaders in recent months, including Russian President Vladimir PutinVladimir Vladimirovich PutinBiden opens new cyber fight with China State, Dems call out Cruz over holds ahead of key Russian talks Where is ‘President Andrew Shepherd’ when we need him? MORE, but there are no plans for him to meet with Chinese President Xi Jinping. The White House says it is exploring future opportunities for engaging with Chinese officials. 

The Biden administration has raised concerns about the Microsoft hack as well as other cyber incidents in conversations with senior Chinese officials, a senior Biden official told reporters on Sunday. 

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There has long been bipartisan support for a foreign policy that is tough on China, though Republicans in Congress and former President TrumpDonald TrumpGreene gets 12-hour Twitter suspension over COVID-19 misinformation Aides who clashed with Giuliani intentionally gave him wrong time for Trump debate prep: book Overnight Defense: Afghan evacuees to be housed at Virginia base | Biden looks to empty Gitmo MORE have sought to portray Biden as weak on Beijing.

The decision to hit China, and Biden’s ability to get other nations on board, could help Biden push back at such efforts.

“Both of them had the same intent, but the Biden administration has properly organized itself to lead, and it’s appropriately reaching out to allies and partners to lead a coalition,” Mark Montgomery, a senior fellow at the Foundation for Defense of Democracies, said in comparing the Biden and Trump efforts.

He stressed that while the Trump administration “had the right intent, the processes are much cleaner and clearer under the Biden administration.”

Cybersecurity is far from the only area of contention, and the Biden administration has taken other steps to push back on what the U.S. views as unacceptable behavior on the part of China. 

Those steps include barring U.S. imports of a material used in solar panels by a Chinese-based firm accused of engaging in forced labor practices and expanding a Trump-era order prohibiting investments in Chinese defense and surveillance firms that produce or use technology that is used to repress individuals or facilitate human rights abuses. 

Lewis noted that despite these steps, the administration was still “trying to work out” what pushing back against China looked like, particularly on cybersecurity concerns. 

“Everywhere China goes there is a problem, so they are losing fans, and the Biden administration is smart to take advantage of that,” Lewis said. 

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Hanan Elatr, the wife of slain Saudi journalist Jamal Khashoggi, was targeted by the Israeli tech firm NSO Group’s Pegasus spyware just months before he was killed in 2018, The Washington Post reports.

On Sunday it was reported that the spyware, used by governments to track terrorists and criminals, had been used to hack smartphones belonging to activists and journalists.

According to the Post, two women close to Khashoggi were targeted by the spyware: Elatr and his fiancée Hatice Cengiz.

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In 2017 and 2018, a Pegasus user sent Elatr a text containing links that were capable of implanting spyware onto her phone, though because she used an Android researchers are reportedly unable to determine whether her device was actually breached.

Elatr, an Egyptian flight attendant who married the Post journalist in 2018, told the newspaper that she and Khashoggi would text multiple times a week, often switching apps on his suggestion as Khashoggi believed that doing so would prevent a security breach.

“Jamal warned me before that this might happen,” Elatr said. “It makes me believe they are aware of everything that happened to Jamal through me.”

The Post reports that a Pegasus user attempted numerous times to hack Cengiz’s phone as well in the days following Khashoggi’s death in Turkey. Cengiz had accompanied Khashoggi to the Saudi consulate in Istanbul, where he was killed and dismembered by a Saudi hit squad.

“I was expecting that, but I am upset. I want to be a normal person, as anyone. All these things make me sad and scared. My phone could be attacked again in the future, and I feel I don’t have any way to protect myself from this,” Cengiz said in an interview in Turkey, the Post reports.

At the time of Khashoggi’s slaying, Elatr and Cengiz did not know of each other. It is unknown if Khashoggi’s phone, which he left with Cengiz before entering the consulate, was hacked as well, as it is currently being held by Turkish authorities.

NSO has so far denied that its technology was used against Khashoggi or those close to him.

“As NSO has previously stated, our technology was not associated in any way with the heinous murder of Jamal Khashoggi,” the tech firm said in a statement to the Post. “This includes listening, monitoring, tracking, or collecting information. We previously investigated this claim, immediately after the heinous murder, which again, is being made without validation.”

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